Document:

EX-10.12

 Exhibit 10.12 
 MALLINCKRODT PUBLIC LIMITED COMPANY 
 RULES 

OF 

MALLINCKRODT SAVINGS-RELATED SHARE PLAN 
 Approved by a board/shareholder resolution on: [date] 
 Approved by HM
Revenue & Customs on: [date] 
 HM Revenue & Customs reference no: SRS110732 

 CONTENTS 

 

									
	Rule	  	Page
Number	 
			
	 1.
	  	    INTERPRETATION
	  	 	1	  
		  	 1.1.
	    	 Definitions
	  	 	1	  
		  	 1.2.
	    	 Interpretation
	  	 	5	  
	 2.
	  	    INVITATIONS TO APPLY FOR, AND APPLICATIONS FOR, GRANT OF OPTIONS
	  	 	5	  
		  	 2.1.
	    	 Announcement of intention to issue Invitations by Board or Trustees
	  	 	5	  
		  	 2.2.
	    	 Persons to whom Invitations must be issued
	  	 	5	  
		  	 2.3.
	    	 Documents which must accompany Invitation
	  	 	5	  
		  	 2.4.
	    	 Contents of Invitation
	  	 	5	  
		  	 2.5.
	    	 Contents of Application Form
	  	 	6	  
		  	 2.6.
	    	 Number of Plan Shares applied for in Application
	  	 	7	  
		  	 2.7.
	    	 Making of Applications
	  	 	7	  
	 3.
	  	    GRANT OF OPTIONS
	  	 	7	  
		  	 3.1.
	    	 Options granted by Company or Trustees
	  	 	7	  
		  	 3.2.
	    	 Persons to whom Options must be granted
	  	 	7	  
		  	 3.3.
	    	 Procedure for grant of Options and Grant Date
	  	 	7	  
		  	 3.4.
	    	 Contents of Option Certificate
	  	 	7	  
		  	 3.5.
	    	 Number of Plan Shares over which Options granted
	  	 	8	  
		  	 3.6.
	    	 Scaling down of Applications
	  	 	8	  
		  	 3.7.
	    	 Period allowed for grant of Options
	  	 	8	  
		  	 3.8.
	    	 Duration of Plan
	  	 	8	  
		  	 3.9.
	    	 Persons to whom Options may be granted
	  	 	9	  
		  	 3.10.
	    	 Options non-transferable
	  	 	9	  
	 4.
	  	    LIMIT ON AGGREGATE NUMBER OF PLAN SHARES PLACED UNDER OPTION
	  	 	9	  
		  	 4.1.
	    	 Power to set limit
	  	 	9	  
	 5.
	  	    EXERCISE PRICE
	  	 	9	  
	 6.
	  	    EXERCISE OF OPTIONS
	  	 	9	  
		  	 6.1.
	    	 Earliest date for exercise of Options
	  	 	9	  
		  	 6.2.
	    	 Latest date for exercise of Options
	  	 	9	  
		  	 6.3.
	    	 Persons who may exercise Options
	  	 	9	  
		  	 6.4.
	    	 Material Interest
	  	 	10	  
		  	 6.5.
	    	 Number of Plan Shares acquired on exercise of Options
	  	 	10	  
		  	 6.6.
	    	 Options may be exercised in whole or in part
	  	 	10	  
		  	 6.7.
	    	 Procedure for exercise of Options
	  	 	10	  
		  	 6.8.
	    	 Issue or transfer of Plan Shares on exercise of Options
	  	 	10	  
		  	 6.9.
	    	 Amount of repayment under Savings Contract
	  	 	10	  
	 7.
	  	    EXERCISE OF OPTIONS IN SPECIAL CIRCUMSTANCES
	  	 	11	  
		  	 7.1.
	    	 Death
	  	 	11	  
		  	 7.2.
	    	 Injury, disability, redundancy, retirement etc
	  	 	11	  
		  	 7.3.
	    	 Specified Age
	  	 	11	  
		  	 7.4.
	    	 Other special circumstances
	  	 	11	  
		  	 7.5.
	    	 Office or employment in Group Company
	  	 	12	  
		  	 7.6.
	    	 Termination of Savings Contract
	  	 	12	  
		  	 7.7.
	    	 Meaning of ceasing to be in Relevant Employment
	  	 	12	  
		  	 7.8.
	    	 Interaction of Rules
	  	 	12	  
	 8.
	  	    TAKEOVER, RECONSTRUCTION, AMALGAMATION OR WINDING-UP OF COMPANY
	  	 	12	  
		  	 8.1.
	    	 General offer for, or acquisition of, Company
	  	 	12	  
		  	 8.2.
	    	 Compulsory acquisition of Company
	  	 	13	  
		  	 8.3.
	    	 Reconstruction or amalgamation of Company
	  	 	13	  
		  	 8.4.
	    	 Winding-up of Company
	  	 	13	  
		  	 8.5.
	    	 Shares subject to Options ceasing to be Plan Shares
	  	 	13	  
		  	 8.6.
	    	 Meaning of “obtains Control of the Company”
	  	 	14	  
		  	 8.7.
	    	 Notification of Option Holders
	  	 	14	  

  
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	 9.
	  	    EXCHANGE OF OPTIONS
	  	 	14	  
		  	 9.1.
	    	 Circumstances in which Exchange can occur
	  	 	14	  
		  	 9.2.
	    	 Period allowed for exchange of Options
	  	 	14	  
		  	 9.3.
	    	 Meaning of “equivalent”
	  	 	14	  
		  	 9.4.
	    	 Grant Date of New Option
	  	 	15	  
		  	 9.5.
	    	 Application of Plan to New Option
	  	 	15	  
	 10.
	  	    LAPSE OF OPTIONS
	  	 	15	  
	 11.
	  	    ADJUSTMENT OF OPTIONS ON REORGANISATION
	  	 	16	  
		  	 11.1.
	    	 Power to adjust Options
	  	 	16	  
		  	 11.2.
	    	 Exercise Price
	  	 	16	  
		  	 11.3.
	    	 Capitalisation of reserves
	  	 	16	  
		  	 11.4.
	    	 HM Revenue & Customs approval
	  	 	16	  
		  	 11.5.
	    	 Notification of Option Holders
	  	 	16	  
	 12.
	  	    ISSUE AND AVAILABILITY OF PLAN SHARES
	  	 	16	  
		  	 12.1.
	    	 Rights attaching to Plan Shares
	  	 	16	  
		  	 12.2.
	    	 Availability of Plan Shares
	  	 	16	  
	 13.
	  	    RELATIONSHIP OF PLAN TO CONTRACT OF EMPLOYMENT
	  	 	17	  
		  	 13.1.
	    	 Contractual Provisions
	  	 	17	  
	 14.
	  	    ADMINISTRATION OF PLAN
	  	 	17	  
		  	 14.1.
	    	 Responsibility for administration
	  	 	17	  
		  	 14.2.
	    	 Grantor’s decision final and binding
	  	 	17	  
		  	 14.3.
	    	 Trustees to consult with Board
	  	 	17	  
		  	 14.4.
	    	 Provision of information
	  	 	17	  
		  	 14.5.
	    	 Cost of Plan
	  	 	18	  
		  	 14.6.
	    	 Establishment of separate plans for overseas territories
	  	 	18	  
		  	 14.7.
	    	 Data protection
	  	 	18	  
	 15.
	  	    AMENDMENT OF PLAN
	  	 	19	  
		  	 15.1.
	    	 Power to amend Plan
	  	 	19	  
		  	 15.2.
	    	 HM Revenue & Customs approval of amendments
	  	 	19	  
		  	 15.3.
	    	 Rights of existing Option Holders
	  	 	19	  
		  	 15.4.
	    	 Notification of Option Holders
	  	 	19	  
	 16.
	  	    NOTICES
	  	 	19	  
		  	 16.1.
	    	 Notice by Grantor
	  	 	19	  
		  	 16.2.
	    	 Deceased Option Holders
	  	 	19	  
		  	 16.3.
	    	 Notice to Grantor
	  	 	19	  
		  	 16.4.
	    	 Option Certificate and Notice of Option
	  	 	20	  
	 17.
	  	    GOVERNING LAW AND JURISDICTION
	  	 	20	  
		  	 17.1.
	    	 Plan governed by English law
	  	 	20	  
		  	 17.2.
	    	 English courts to have jurisdiction
	  	 	20	  
		  	 17.3.
	    	 Jurisdiction agreement for benefit of Company
	  	 	20	  
		  	 17.4.
	    	 Option Holder deemed to submit to such jurisdiction
	  	 	20	  

  
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	1.	INTERPRETATION 

  

	1.1.	Definitions 

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

	1.1.1.	Acquiring Company means a company (including a New Holding Company) which obtains Control of the Company in the circumstances referred to in Rule 8.1, 8.2 or 8.3
(reading the reference in Rule 8.3 to “proposes to obtain” as “obtains”); 

  

	1.1.2.	Acting In Concert has the meaning given to that expression in The City Code on Takeovers and Mergers in its present form or as amended from time to time;

  

	1.1.3.	Adoption Date means the date on which the Plan was adopted by the board of Mallinckrodt public limited company, incorporated in Ireland;

  

	1.1.4.	Applicant means an Eligible Employee who applies for the grant of an Option; 

 

	1.1.5.	Application means an application for the grant of an Option; 

  

	1.1.6.	Application Form means the form referred to in Rule 2.3 on which an application for the grant of an Option is made; 

 

	1.1.7.	Approval Date means the date on which the Plan is approved by HM Revenue & Customs under Schedule 3; 

 

	1.1.8.	Associated Company has the meaning given to that expression by paragraph 47 of Schedule 3 or, where the context requires, paragraph 35(4) of Schedule 3;

  

	1.1.9.	Board means the board of directors of the Company or a duly authorised committee thereof; 

 

	1.1.10.	Bonus Date means 

  

	 	(a)	in the case of a three year Savings Contract, the earliest date on which a Standard Bonus would be payable under the Savings Contract; and 

 

	 	(b)	in the case of a five year Savings Contract, the earliest date on which a Standard Bonus or a Maximum Bonus would be payable under the Savings Contract, according to
whether, for the purpose of determining the number of Plan Shares over which the Option linked to the Savings Contract was granted, the repayment under the Savings Contract is to be taken as including the Standard Bonus (or no bonus) or the Maximum
Bonus, respectively; 

  

	1.1.11.	Close Company has the meaning given to that expression by sections 442(a), 446 and 447 of CTA 2010, and paragraph 11(4) of Schedule 3; 

 

	1.1.12.	Company means Mallinckrodt public limited company incorporated in Ireland under registered number 522227, being the scheme organiser for the purposes of
paragraph 2(2) of Schedule 3; 

  

	1.1.13.	Consortium has the meaning given to that word by paragraph 48(2) of Schedule 3; 

 

	1.1.14.	Constituent Company means the Company or a company which is a Subsidiary and which has been nominated by the Board to participate in the Plan from time to time;

  
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	1.1.15.	Continuous Employment has the meaning given by the Employment Rights Act 1996: 

 

	1.1.16.	Control has the meaning given to that word by section 719 of ITEPA 2003; 

 

	1.1.17.	CTA 2010 means the Corporation Tax Act 2010; 

  

	1.1.18.	Eligible Employee means an individual who is: 

  

	 	(a)	an employee (other than a director) of a Constituent Company; or 

  

	 	(b)	a director of a Constituent Company who is contracted to work at least 25 hours per week for the Group (exclusive of meal breaks); 

and who, in either case: 
  

	 	(i)	is not eligible solely by reason that he is a non-executive director of a Constituent Company; 

 

	 	(ii)	has earnings in respect of his office or employment which are (or would be if there were any) general earnings to which section 15 of ITEPA 2003 applies;

  

	 	(iii)	has at the Grant Date such period of Continuous Employment as a director or employee, not exceeding five years, as the Grantor determines for the purpose of an issue of
Invitations; 

  

	 	(iv)	has not given or been given notice to terminate his employment within the Group; and 

 

	 	(v)	does not have at the Grant Date, and has not had during the preceding twelve months, a Material Interest in a Close Company which is the Company or a company which has
Control of the Company or a member of a Consortium which owns the Company; or 

  

	 	(c)	a director (other than a non executive director) or employee of a Constituent Company nominated by the Grantor to be an Eligible Employee who is not prohibited from
participating in the Plan by sub paragraph (v) above; 

  

	1.1.19.	Employees’ Share Scheme has the meaning set out in section 1166 of the Companies Act 2006; 

 

	1.1.20.	Exercise Price means the amount per Plan Share payable on the exercise of an Option determined in accordance with Rule 5; 

 

	1.1.21	Grant Date means the date on which an Option is granted to an Eligible Employee determined in accordance with Rule 3.3; 

 

	1.1.22	Grantor means 

  

	 	(a)	in relation to an Option granted by the Company, the Board; and 

  

	 	(b)	in relation to an Option granted by the Trustees, the Trustees; 

  

	1.1.23	Invitation means an invitation to apply for the grant of an Option issued under Rule 2.2; 

 

	1.1.24	Invitation Date means the date on which an Invitation is issued; 

  
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	1.1.25	ITA 2007 means the Income Tax Act 2007; 

  

	1.1.26	ITEPA 2003 means the Income Tax (Earnings and Pensions) Act 2003; 

  

	1.1.27	ITTOIA 2005 means the Income Tax (Trading and Other Income) Act 2005; 

 

	1.1.28	Key Feature means a provision of the Plan which is necessary in order to meet the requirements of Schedule 3; 

 

	1.1.29	Market Value means 

  

	 	(a)	if at the relevant time Plan Shares are listed on the New York Stock Exchange (or any other recognised stock exchange within the meaning of section 1005 of ITA 2007)
either: 

  

	 	(i)	the middle market quotation of a Plan Share (as derived from the New York Stock Exchange or the list appropriate to such other exchange or market) for the trading day
immediately preceding the Invitation Date; or 

  

	 	(ii)	if the Grantor so decides, an amount equal to the arithmetic average of the middle market quotations of a Plan Share (derived on the same basis) for the three trading
days immediately preceding the Invitation Date; or 

  

	 	(iii)	if the Grantor so decides, the closing quotation of a Plan Share (as derived from the New York Stock Exchange or the list appropriate to such other exchange or market)
for the trading day immediately preceding the Invitation Date 

 save that in any case, where the middle market
quotation of a Plan Share is derived from a recognised stock exchange other than the New York Stock Exchange, the value must be agreed in advance with HM Revenue & Customs Shares & Assets Valuation; or 

 

	 	(b)	if at the relevant time Plan Shares are not so listed, the market value of a Plan Share as determined in accordance with Part VIII of the Taxation of Chargeable Gains
Act 1992 and agreed in advance by the Grantor with HM Revenue & Customs Shares & Assets Valuation on the Invitation Date or such earlier date or dates as may be agreed with HM Revenue & Customs; 

 

	1.1.30	Material Interest has the meaning given to that expression by paragraphs 11 and 12 to 16 of Schedule 3; 

 

	1.1.31	Maximum Bonus means the bonus which is payable two years after the Option Holder has made 60 monthly (or the weekly equivalent) savings contributions under a
five year Savings Contract; 

  

	1.1.32	Minimum Monthly Savings Amount means in relation to each Invitation, the minimum monthly saving which may be made by an Option Holder as determined by the Board
in accordance with paragraph 25(3)(b) of Schedule 3 being not less than £5 (or such other minimum savings amount specified from time to time by HM Revenue & Customs in their Save-As-You-Earn prospectus) nor more than £10 (or
such other amount as may be permitted from time to time under paragraph 25(3)(b) of Schedule 3); 

  
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	1.1.33	New Holding Company means a company which obtains Control of the Company where 90% or more of the New Holding Company’s ordinary shares are held in
substantially the same proportions by substantially the same persons who previously held the Company’s ordinary shares; 

  

	1.1.34	New Option means an option granted by way of exchange under Rule 9.1; 

 

	1.1.35	New Plan Shares means the shares subject to a New Option; 

  

	1.1.36	New York Stock Exchange means the New York Stock Exchange or any successor body; 

 

	1.1.37	Notice of Exercise means the notice given in respect of the exercise of an Option under Rule 6.7; 

 

	1.1.38	Option means a right to acquire Plan Shares granted under the Plan; 

 

	1.1.39	Option Certificate means the deed or statement under which an Option is granted in accordance with Rule 3.3; 

 

	1.1.40	Option Holder means an individual who holds an Option or, where the context permits, his legal personal representatives; 

 

	1.1.41	Plan means this Mallinckrodt Savings-Related Share Plan as adopted by Mallinckrodt public limited company on [    ] in its present form or as
amended from time to time; 

  

	1.1.42	Plan Shares means ordinary shares in the capital of the Company which satisfy the conditions in paragraphs 17 to 22 of Schedule 3; 

 

	1.1.43	Relevant Employment means employment with any Group Member; 

  

	1.1.44	Reorganisation means any variation in the share capital of the Company, including but without limitation a capitalisation issue, rights issue, rights offer or
bonus issue and a sub-division, consolidation or reduction in the capital of the Company but excluding a capitalisation issue in substitution for or as an alternative to a cash dividend; 

 

	1.1.45	Rules mean the rules of the Plan; 

  

	1.1.46	Savings Contract means a contract under a certified contractual savings scheme within the meaning of section 703 of ITTOIA 2005 which has been approved by HM
Revenue & Customs for the purpose of Schedule 3; 

  

	1.1.47	Schedule 3 means Schedule 3 to ITEPA 2003; 

  

	1.1.48	Specified Age means 60 years; 

  

	1.1.49	Standard Bonus means the earliest bonus which is payable under a Savings Contract; 

 

	1.1.50	Subsidiary means a company which is a subsidiary of the Company within the meaning of section 1159 of the Companies Act 2006 over which the Company has Control;

  

	1.1.51	Trustees means the trustees of any trust created by a Group Member which, when taken together with the Plan, constitutes an Employees’ Share Scheme.

  
 -4-

	1.2.	Interpretation 

 In the Plan, unless
otherwise specified: 
  

	1.2.1.	the contents and rule headings are inserted for ease of reference only and do not affect the interpretation of the Plan; 

 

	1.2.2.	a reference to a Rule is a reference to a rule of the Plan; 

  

	1.2.3.	save as provided for by law and subject to Rule 16.4 a reference to writing includes any mode of reproducing words in a legible form and reduced to paper or electronic
format or communication including, for the avoidance of doubt, correspondence via e-mail; 

  

	1.2.4.	the singular includes the plural and vice versa and the masculine includes the feminine; 

 

	1.2.5.	a reference to a statutory provision includes any statutory modification, amendment or re-enactment thereof; and 

 

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

 

	2.	INVITATIONS TO APPLY FOR, AND APPLICATIONS FOR, GRANT OF OPTIONS 

  

	2.1.	Announcement of intention to issue Invitations by Board or Trustees 

 The Board or the Trustees may, in their absolute discretion, from time to time, announce their intention to issue Invitations in accordance with this Rule 2 to Eligible Employees to apply for the grant of
Options. 
  

	2.2.	Persons to whom Invitations must be issued 

If the Grantor announces its intention to issue Invitations, it shall issue an Invitation to every person who is, or will on the Grant Date be, an
Eligible Employee. 
  

	2.3.	Documents which must accompany Invitation 

An Invitation shall be accompanied by: 
  

	2.3.1.	an Application Form to be used by the recipient of the Invitation to apply for the grant of the Option referred to in the Invitation and to apply to enter into a
Savings Contract approved by the Grantor for the purpose of that issue of Invitations and linked to the Option; and 

  

	2.3.2.	a copy of the Rules. 

  

	2.4.	Contents of Invitation 

 An Invitation
shall state: 
  

	2.4.1.	the date, being not less than 14 nor more than 21 days after the date of issue of the Invitation, by which the recipient of the Invitation must submit an Application;

  
 -5-

	2.4.2.	the Minimum Monthly Savings Amount under the Savings Contract linked to the Option referred to in the Invitation; 

 

	2.4.3.	the Exercise Price under the Option referred to in the Invitation or the method by which the Exercise Price will be determined and notified to Eligible Employees;

  

	2.4.4.	the maximum permitted aggregate monthly savings contribution under the Savings Contract linked to the Option referred to in the Invitation taken together with savings
contributions by the Applicant under any other savings contract linked to any other Option or option granted under any other SAYE option scheme approved by HM Revenue & Customs under Schedule 3, being the lesser of £250 (or such other
amount as may be permitted from time to time under paragraph 25(3)(a) of Schedule 3) and such other amount (being a multiple of £1 and not less than £5 (or such other minimum savings amount specified from time to time by HM
Revenue & Customs in their Save-As-You-Earn prospectus)) as the Board may determine for the purpose of that issue of Invitations; 

  

	2.4.5.	whether an Applicant must enter into a three year or a five year Savings Contract or may choose either; 

 

	2.4.6.	whether, for the purpose of determining the number of Plan Shares over which the Option referred to in the Invitation is to be granted, the repayment under the Savings
Contract linked to the Option must be taken as including the Maximum Bonus, the Standard Bonus or no bonus or whether the recipient of the Invitation may choose any of these; and 

 

	2.4.7.	the maximum total number of Plan Shares, if any, set by the Board under Rule 4.1 over which Options will be granted in response to that issue of Invitations.

 Subject to this Rule 2, an Invitation shall be in such form as the Grantor may determine from time to time. 

 

	2.5.	Contents of Application Form 

 An
Application Form shall require an Applicant to state: 
  

	2.5.1.	the monthly savings contribution (being a multiple of £1 and not less than £5 (or such other minimum savings amount specified from time to time by HM
Revenue & Customs in their Save-As-You-Earn prospectus)) which he wishes to make under the Savings Contract linked to the Option referred to in the Invitation; 

 

	2.5.2.	that his proposed monthly savings contribution, when added to any monthly savings contributions then being made by him under any other Savings Contract linked to an
Option or to an option granted under any other SAYE option scheme approved by HM Revenue & Customs under Schedule 3, will not exceed the maximum permitted aggregate monthly savings contribution specified in the Invitation;

  

	2.5.3.	where appropriate, whether he wishes to enter into a three or five year Savings Contract, and, in the case of a five year Savings Contract, whether he wishes it to be
linked to the Maximum Bonus or the Standard Bonus; and 

  

	2.5.4.	where appropriate, whether, for the purpose of determining the number of Plan Shares over which the Option referred to in the Invitation is to be granted, he wishes the
repayment under the Savings Contract linked to the Option to be taken as including a bonus or no bonus; 

  
 -6-

 and shall authorise the Grantor to enter on the Application Form, on behalf of the Applicant, such monthly
savings contribution, not exceeding the maximum stated on the Application Form, as the Grantor determines under Rule 3.6. 
 Subject to this
Rule 2, an Application Form shall be in such form as the Grantor may determine from time to time. 
  

	2.6.	Number of Plan Shares applied for in Application 

 An Application shall be deemed to be for the grant of an Option over the maximum whole number of Plan Shares which may be acquired at the Exercise Price out of the expected repayment (including any bonus
where permitted under Rule 2.4.6 and requested by the Applicant pursuant to Rule 2.5.4) under the Savings Contract linked to the Option at the applicable Bonus Date. 
  

	2.7.	Making of Applications 

 The recipient of
an Invitation who wishes to apply for the grant of the Option referred to in the Invitation shall submit to the Grantor, within the period specified in the Invitation, a duly completed Application Form. 

 

	3.	GRANT OF OPTIONS 

  

	3.1.	Options granted by Company or Trustees 

The Company or the Trustees may from time to time grant Options to Eligible Employees. 

 

	3.2.	Persons to whom Options must be granted 

The Grantor shall grant the Option referred to in each Invitation in respect of which the Grantor has received a valid Application and, where Rule 3.6.4
applies, which has been selected by lot. 
  

	3.3.	Procedure for grant of Options and Grant Date 

 The Grantor shall grant an Option by passing a resolution. The Grant Date shall be the date on which the Grantor passes the resolution or such later date as is specified in the resolution and allowed by
Rules 3.7 and 3.8. The grant of an Option or Options shall be evidenced by a deed executed by or on behalf of the Grantor. The deed or a statement providing details of the grant shall be issued to each Applicant who has been granted an Option as
soon as reasonably practicable following the grant of the Option. 
  

	3.4.	Contents of Option Certificate 

 An Option
Certificate shall state: 
  

	•	 	 the Grant Date; 

  

	•	 	 the number of Plan Shares subject to the Option; 

  

	•	 	 the Exercise Price; and 

  

	•	 	 the Bonus Date, being the date on which the Option will ordinarily become exercisable. 

  
 -7-

 Subject thereto, an Option Certificate shall be in such form as the Board may determine from time to time.

  

	3.5.	Number of Plan Shares over which Options granted 

 An Option shall be granted over the number of Plan Shares for which the Applicant is deemed under Rule 2.6 or 3.6, as appropriate, to have applied. 

 

	3.6.	Scaling down of Applications 

 If the
Grantor receives Applications for the grant of Options over a number of Plan Shares in excess of any of the limits in Rule 4, it shall, to the extent necessary to eliminate the excess, take the following steps in the following order or such other
steps as it may agree in advance with HM Revenue & Customs: 
  

	3.6.1.	first, for the purpose of determining the number of Plan Shares over which the Option referred to in an Invitation is to be granted, it shall take the repayment under
the Savings Contract linked to the Option as including the Standard Bonus instead of the Maximum Bonus; 

  

	3.6.2.	secondly, it shall take the repayment under the Savings Contract linked to the Option as including no bonus instead of the Standard Bonus; 

 

	3.6.3.	thirdly, it shall reduce pro rata the excess over £5 (or such other minimum savings amount specified from time to time by HM Revenue & Customs in their
Save-As-You-Earn prospectus), or such greater amount as the Grantor may determine, of the monthly savings contribution selected by each Applicant; 

  

	3.6.4.	fourthly, it shall select Applications by lot and each Application shall be deemed to be for a monthly savings contribution of £5 (or such other minimum savings
amount specified from time to time by HM Revenue & Customs in their Save-As-You-Earn prospectus) only with the repayment under the Savings Contract linked to the Option taken as including no bonus. 

Each Application shall be deemed to have been withdrawn or amended accordingly and the Grantor shall amend each Application Form to reflect any reduction
in the bonus or the monthly savings contribution resulting therefrom. 
 For the purpose of applying this Rule 3.6, if an Applicant has made
multiple Applications, the Applications shall be treated as a single Application and the monthly savings contributions applied for in the Applications shall be aggregated. 

 

	3.7.	Period allowed for grant of Options 

 An
Option may be granted only during the period of thirty days beginning on the earliest of the dates referred to in the definition of “Market Value” and used for the purpose of determining the Exercise Price or, if Rule 3.6 applies, during
the period of forty two days beginning on the earliest of such dates. 
  

	3.8.	Duration of Plan 

 An Option may not be
granted 
  

	3.8.1.	earlier than the Approval Date; nor 

  

	3.8.2.	more than ten years after the Adoption Date. 

  
 -8-

	3.9.	Persons to whom Options may be granted 

The Grantor may not grant an Option to an individual who is not an Eligible Employee on the Grant Date. 

 

	3.10.	Options non-transferable 

 An Option shall
be personal to the Eligible Employee to whom it is granted and, subject to Rule 7.1, shall not be capable of being transferred, charged or otherwise alienated and shall lapse immediately if the Option Holder purports to transfer, charge or otherwise
alienate the Option. 
  

	4.	LIMIT ON AGGREGATE NUMBER OF PLAN SHARES PLACED UNDER OPTION 

  

	4.1.	Power to set limit 

 The Board may, in its
absolute discretion, from time to time set a maximum limit on the total number of Plan Shares which may be placed under Option under the Plan in response to an issue of Invitations (but no such limit shall invalidate any Option granted prior to such
limit being set). 
  

	5.	EXERCISE PRICE 

 The Exercise Price shall
be determined by the Board and may be any price but shall not be less than the higher of: 
  

	(a)	eighty percent of the Market Value of a Plan Share; and 

  

	(b)	in the case of any Option which will be satisfied by the issue of new shares the nominal value of a Plan Share. 

 

	6.	EXERCISE OF OPTIONS 

  

	6.1.	Earliest date for exercise of Options 

Subject to Rules 7 and 8, an Option may not be exercised before the Bonus Date. 

 

	6.2.	Latest date for exercise of Options 

Subject to Rule 7.1, an Option may not be exercised more than six months after the Bonus Date and if not exercised by that date shall lapse immediately.

  

	6.3.	Persons who may exercise Options 

 Subject
to Rule 7, an Option may be exercised only while the Option Holder is in Relevant Employment and if an Option Holder ceases to be in Relevant Employment, any Option granted to him shall lapse immediately. This Rule 6.3 shall apply where the Option
Holder ceases to be in Relevant Employment in any circumstances (including, in particular, but not by way of limitation, where the Option Holder is dismissed unfairly, wrongfully, in breach of contract or otherwise). 

  
 -9-

	6.4.	Material Interest 

 An Option may not be
exercised if the Option Holder then has, or has had within the preceding twelve months, a Material Interest in a Close Company which is the Company or which is a company which has Control of the Company or which is a member of a Consortium which
owns the Company. 
  

	6.5.	Number of Plan Shares acquired on exercise of Options 

 The number of Plan Shares which may be acquired on the exercise of an Option shall be limited to the maximum whole number which may be acquired at the Exercise Price out of the repayment (including any
interest or bonus that has been taken into account in determining the number of Plan Shares over which the Option was granted) received by the Option Holder under the Savings Contract linked to the Option. 

 

	6.6.	Options may be exercised in whole or in part 

 An Option may, to the extent it has become exercisable, be exercised in whole or in part. If exercised in part, the unexercised part of the Option shall lapse. 

 

	6.7.	Procedure for exercise of Options 

  

	6.7.1.	An Option shall be exercised by the Option Holder delivering to the Grantor a duly completed Notice of Exercise in the form from time to time prescribed by the Grantor,
specifying the number of Plan Shares in respect of which the Option is being exercised, and accompanied by evidence of the termination of the Savings Contract linked to the Option, payment in full for the Plan Shares (which shall not exceed the
repayment, including any interest or bonus, received by the Option Holder under the linked Savings Contract) and, if available, the Option Certificate. Such payment may be made by the Option Holder or by the bank or building society with which the
Savings Contract was made. 

  

	6.7.2.	For the avoidance of doubt, the date of exercise of an Option shall be determined in accordance with Rule 16.3. If payment is made by cheque and the cheque fails to
clear the Option shall be deemed never to have been exercised. 

  

	6.8.	Issue or transfer of Plan Shares on exercise of Options 

 Subject to any necessary consents and to compliance by the Option Holder with the Rules, the Grantor shall, as soon as reasonably practicable and in any event not later than thirty days after the date of
exercise of the Option, issue or transfer to the Option Holder, or procure the issue or transfer to the Option Holder of, the number of Plan Shares specified in the Notice of Exercise and shall deliver or procure the delivery to the Option Holder of
a definitive share certificate in respect of such Plan Shares. 
  

	6.9.	Amount of repayment under Savings Contract 

For the purpose of Rules 6.5 and 6.7, the repayment received under a Savings Contract shall exclude the repayment of any contribution the due date for
payment of which falls after any date on which the Option Holder ceases to be in Relevant Employment. 

  
 -10-

	7.	EXERCISE OF OPTIONS IN SPECIAL CIRCUMSTANCES 

  

	7.1.	Death 

 Notwithstanding Rules 6.1, 6.2 and
6.3, if an Option Holder dies before the Bonus Date, his personal representatives shall be entitled to exercise his Options at any time during the twelve month period after his death. If not so exercised, the Options shall lapse immediately.

 Notwithstanding Rules 6.2 and 6.3, if an Option Holder dies during the period of six months after the Bonus Date, his personal
representatives shall be entitled to exercise his Options at any time during the twelve month period after the Bonus Date. If not so exercised, the Options shall lapse immediately. 

 

	7.2.	Injury, disability, redundancy, retirement etc 

 Subject to Rule 7.5, notwithstanding Rules 6.1 and 6.3, if an Option Holder ceases to be in Relevant Employment by reason of: 

 

	7.2.1.	injury or disability; 

  

	7.2.2.	redundancy within the meaning of the Employment Rights Act 1996; 

  

	7.2.3.	retirement on or after reaching the Specified Age or any other age at which he is bound to retire under the terms of his contract of employment;

  

	7.2.4.	his office or employment ceasing to be a Relevant Employment because 

  

	 	7.2.4.1.	it is in a company which ceases to be a member of the Group; or 

  

	 	7.2.4.2.	it relates to a business or part of a business which is transferred to a person who is not a member of the Group 

he shall be entitled to exercise his Options at any time during the period of six months after the date he ceased to be in Relevant Employment except
that in the case of cessation of employment by reason of a circumstance within Rules 7.2.1, 7.2.2 or 7.2.3 occurring within the six month period after an event to which Rule 7.2.4 applied he shall be entitled to exercise his Options within the six
month period after such cessation of employment. 
  

	7.3.	Specified Age 

 If an Option Holder
continues to be employed after the date on which he reaches the Specified Age, he shall be entitled to exercise his Options at any time during the six month period thereafter. If not so exercised, the Options shall not lapse but shall be exercisable
or not, as the case may be, in accordance with the rules of the Plan. 
  

	7.4.	Other special circumstances 

 If an Option
Holder ceases to be in Relevant Employment for a reason other than those referred to in Rules 7.1 and 7.2 and within three years after the Grant Date, the Option shall lapse immediately. 
 If an Option Holder ceases to be in Relevant Employment for a reason other than those referred to in Rules 7.1 and 7.2 and more than three years after the Grant Date, he shall be entitled to exercise the
Option at any time during the six month period thereafter. If not so exercised, the Option shall lapse immediately. 

  
 -11-

	7.5.	Office or employment in Group Company 

If, at the relevant Bonus Date, an Option Holder holds an office or employment in a company which is not a Constituent Company but which is a member of
the Group he shall be entitled to exercise his Options at any time during the six month period thereafter. 
  

	7.6.	Termination of Savings Contract 

 If an
Option Holder gives, or is deemed under the terms of his Savings Contract to have given, notice that he intends to cease paying contributions under his Savings Contract, the Option linked to the Savings Contract shall lapse immediately unless the
Option has already become exercisable in accordance with the rules of the Plan. 
  

	7.7.	Meaning of ceasing to be in Relevant Employment 

 For the purpose of Rules 6.3, 7.2, 7.4, and 10.1.2, an Option Holder shall not be treated as ceasing to be in Relevant Employment until he no longer holds any office or employment with a member of the
Group. 
  

	7.8.	Interaction of Rules 

  

	7.8.1.	If an Option has become exercisable under Rule 7.2 or 7.3 and, during the period allowed for the exercise of the Option under Rule 7.2 or 7.3, the Option Holder dies,
the period allowed for the exercise of the Option shall be the period allowed by Rule 7.1. 

  

	7.8.2.	If an Option has become exercisable under Rule 8.1, 8.2 or 8.3 and, during the period allowed for the exercise of the Option under Rule 8.1, 8.2 or 8.3, the Option
becomes exercisable under Rule 7.1 or 7.2 also, the period allowed for the exercise of the Option shall be the period allowed by Rule 7.1 or 7.2, as applicable. 

 

	8.	TAKEOVER, RECONSTRUCTION, AMALGAMATION OR WINDING-UP OF COMPANY 

  

	8.1.	General offer for, or acquisition of, Company 

 Notwithstanding Rule 6.1, if a person other than a New Holding Company obtains Control of the Company as a result of: 
  

	8.1.1.	making a general offer to acquire the whole of the issued ordinary share capital of the Company which is made on a condition such that if it is satisfied the person
making the offer will have Control of the Company; or 

  

	8.1.2.	making a general offer to acquire all the shares in the Company of the same class as the Plan Shares 

(in either case, other than any shares already held by him or a person Acting In Concert with him) 

all Options may be exercised, subject to Rule 8.2, at any time during the period of six months beginning with the time when the person making the offer
or proposed acquisition (as the case may be) has obtained Control of the Company and any condition subject to which the offer or proposed acquisition is made has been satisfied. If not so exercised, the Options shall lapse at the expiry of the six
month period. 

  
 -12-

	8.2.	Compulsory acquisition of Company 

Notwithstanding Rule 6.1, if a person, other than a New Holding Company, becomes entitled or bound to acquire shares in the Company, under the Companies
Acts 1963-2012 of Ireland pursuant to provisions that are accepted by HM Revenue & Customs as being closely comparable to sections 979 and 982 of the Companies Act 2006, all Options may be exercised at any time during the period beginning
with the date the person serves a notice under the relevant provisions and ending seven clear days before the date on which the person ceases to be entitled to serve such a notice. If not so exercised, the Options shall cease to be exercisable and
shall lapse when the person ceases to be entitled to serve such a notice. 
  

	8.3.	Reconstruction or amalgamation of Company 

Notwithstanding Rule 6.1, if a person, other than a New Holding Company, obtains Control of the Company in pursuance of a compromise or arrangement
sanctioned by the court under the Companies Acts 1963-2012 of Ireland pursuant to provisions that are accepted by HM Revenue & Customs as being closely comparable to section 899 of the Companies Act 2006: 

 

	8.3.1.	Option Holders may give notice to exercise all Options, at any time during the six month period beginning with the date on which the court sanctions the compromise or
arrangement; 

  

	8.3.2.	any Options not so exercised shall cease to be exercisable and shall lapse immediately at the end of such six month period; 

 

	8.3.3.	an Option which has already become exercisable may be exercised before the date specified in Rule 8.3.1. Any Option not so exercised shall cease to be exercisable and
shall lapse at the end of the six month period following the date on which the court sanctions the compromise or arrangement. 

  

	8.4.	Winding-up of Company 

 If notice is given
of a resolution for the voluntary winding-up of the Company: 
  

	8.4.1.	Option Holders may exercise all Options, at any time during the six month period beginning with the date on which the Company passes the resolution for the voluntary
winding-up of the Company; 

  

	8.4.2.	any Options not so exercised shall cease to be exercisable and shall lapse immediately at the end of such six month period; and 

 

	8.4.3.	an Option which has already become exercisable may be exercised before the date specified in Rule 8.4.1. Any Option not so exercised shall cease to be exercisable and
shall lapse immediately at the end of the six month period beginning with the date on which the Company passes the resolution for the voluntary winding up of the Company. 

 

	8.5.	Shares subject to Options ceasing to be Plan Shares 

 If the shares subject to an Option cease to satisfy the conditions in paragraphs 17 to 22 of Schedule 3: 
  

	8.5.1.	the Grantor shall, as soon as reasonably practicable, notify HM Revenue & Customs; 

  
 -13-

	8.5.2.	the Option shall continue to exist and shall continue to be entitled to exemptions from income tax applying to an SAYE option scheme approved under Schedule 3 subject
to any determination by HM Revenue & Customs under paragraph 42 of Schedule 3; and 

  

	8.5.3.	the Plan shall continue to exist but, if HM Revenue & Customs withdraw approval of the Plan under Schedule 3, as a non HM Revenue & Customs approved
plan. 

  

	8.6.	Meaning of “obtains Control of the Company” 

 For the purpose of Rule 8, a person shall be deemed to have obtained Control of the Company if he and others Acting In Concert with him have together obtained Control of it. 

 

	8.7.	Notification of Option Holders 

 The
Grantor shall, as soon as reasonably practicable, notify each Option Holder of the occurrence of any of the events referred to in this Rule and explain how this affects his position under the Plan. 

 

	9.	EXCHANGE OF OPTIONS 

  

	9.1.	Circumstances in which Exchange can occur 

If the person referred to in Rules 8.1, 8.2 or 8.3, including a New Holding Company, obtains Control of the Company, an Option Holder may, at any time
during the period set out in Rule 9.2, by agreement with the Acquiring Company, release his Option in consideration of the grant to him of a new option which is equivalent to the Option but which relates to shares in: 

 

	9.1.1.	the Acquiring Company; or 

  

	9.1.2.	a company which has Control of the Acquiring Company; or 

  

	9.1.3.	a company which either is, or has Control of, a company which is a member of a Consortium which owns either the Acquiring Company or a company having Control of the
Acquiring Company. 

  

	9.2.	Period allowed for exchange of Options 

The period referred to in Rule 9.1 is: 
  

	9.2.1.	where Rule 8.1 applies or would apply if the reference in that Rule to “person” was read as “person including a New Holding Company”, the period
referred to in that Rule; 

  

	9.2.2.	where Rule 8.2 applies, the period during which the Acquiring Company remains so entitled or bound; and 

 

	9.2.3.	where Rule 8.3 applies, the period of six months beginning with the time when the court sanctions the compromise or arrangement. 

 

	9.3.	Meaning of “equivalent” 

 The
New Option shall not be regarded for the purpose of this Rule 9 as equivalent to the Option unless: 
  

	9.3.1.	the New Plan Shares satisfy the conditions in paragraphs 17 to 22 of Schedule 3; and 

  
 -14-

	9.3.2.	the New Option will be exercisable in the same manner as the Option and subject to the provisions of the Plan as it had effect immediately before the release of the
Option; 

  

	9.3.3.	the total market value, immediately before the release of the Option, of the Plan Shares which were subject to the Option is as nearly as may be equal to the total
market value, immediately after the grant of the New Option, of the New Plan Shares subject to the New Option (market value being determined for this purpose in accordance with Part VIII of the Taxation of Chargeable Gains Act 1992); and

  

	9.3.4.	the total amount payable by the Option Holder for the acquisition of the New Plan Shares under the New Option is as nearly as may be equal to the total amount that
would have been payable by the Option Holder for the acquisition of the Plan Shares under the Option. 

  

	9.4.	Grant Date of New Option 

 The Grant Date
of the New Option shall be deemed to be the same as the Grant Date of the Option. 
  

	9.5.	Application of Plan to New Option 

 In the
application of the Plan to the New Option, where appropriate, references to “Company” and “Plan Shares” shall be read as if they were references to the company to whose shares the New Option relates and the New Plan Shares,
respectively, save that, where appropriate, in the definition of “Board” the reference to “Company” shall be read as if it were a reference to Mallinckrodt public limited company. An exchange of Options pursuant to this Rule 9
shall not alter the fact that this Plan remains that of the Company as the original scheme organiser. 
  

	10.	LAPSE OF OPTIONS 

 An Option shall lapse
on the earliest of: 
  

	10.1.1.	subject to Rule 7.1, six months after the Bonus Date; 

  

	10.1.2.	subject to Rules 7.1, 7.2 and 7.4, the Option Holder ceasing to be in Relevant Employment; 

 

	10.1.3.	the date on which it is provided that the Option shall lapse under Rules 7.1, 7.2 and 7.4 and 8.1 to 8.4; 

 

	10.1.4.	the date on which the Option Holder becomes bankrupt or enters into a compromise with his creditors generally; 

 

	10.1.5.	before an Option has become capable of being exercised, the Option Holder giving notice that he intends to stop paying monthly contributions, or being deemed under the
terms of the Savings Contract to have given such notice or making an application for the repayment of his aggregate monthly contributions; and 

  

	10.1.6.	the date on which the Option Holder purports to transfer, charge or otherwise alienate the Option. 

  
 -15-

	11.	ADJUSTMENT OF OPTIONS ON REORGANISATION 

  

	11.1.	Power to adjust Options 

 In the event of
a Reorganisation, the number of Plan Shares subject to an Option, the description of the Plan Shares, the Exercise Price, or any one or more of these, may be adjusted in such manner as the Board or, where the Trustees are the Grantor, the Trustees
and the Board together determine. 
  

	11.2.	Exercise Price 

 Subject to Rule 11.3, no
adjustment shall be made to the Exercise Price which would result in the Plan Shares subject to an Option being issued directly to the Option Holder at a price per Plan Share lower than the nominal value of a Plan Share and, if an adjustment would
so result, the Exercise Price shall be the nominal value of a Plan Share. 
  

	11.3.	Capitalisation of reserves 

Notwithstanding Rule 11.2, an adjustment may be made which would result in the Plan Shares subject to an Option being issued at a price per Plan Share
lower than the nominal value of a Plan Share if and to the extent that the Board is authorised to capitalise from the Company’s reserves a sum equal to the amount by which the aggregate nominal value of the Plan Shares subject to the Options
which are adjusted exceeds the aggregate adjusted Exercise Price under such Options. If such an adjustment is made, on the subsequent exercise of the Option, the Board shall capitalise such sum and apply the sum in paying up such excess. 

 

	11.4.	HM Revenue & Customs approval 

An adjustment shall not have effect until the adjustment has been approved by HM Revenue & Customs. 

 

	11.5.	Notification of Option Holders 

 The
Grantor shall, as soon as reasonably practicable, notify each Option Holder of any adjustment made under this Rule 11 and explain how this affects his position under the Plan. The Grantor may call in for endorsement or cancellation and re-issue any
Option Certificate in order to take account of such adjustment. 
  

	12.	ISSUE AND AVAILABILITY OF PLAN SHARES 

  

	12.1.	Rights attaching to Plan Shares 

 All Plan
Shares issued in respect of exercise of an Option shall, as to voting, dividend, transfer and other rights, including those arising on a liquidation of the Company, rank equally in all respects and as one class with the Plan Shares in issue at the
date of such issue save as regards any rights attaching to such Plan Shares by reference to a record date prior to the date of such issue. 
  

	12.2.	Availability of Plan Shares 

 The Company
shall at all times use its reasonable endeavours to keep available sufficient authorised but unissued Plan Shares to satisfy the exercise of all Options which the Board has determined will be satisfied by the issue of Plan Shares (whether directly
to the Option Holder or indirectly via the Trustees). 

  
 -16-

	13.	RELATIONSHIP OF PLAN TO CONTRACT OF EMPLOYMENT 

  

	13.1.	Contractual Provisions 

 Notwithstanding
any other provision of the Plan: 
  

	13.1.1.	the Plan shall not form part of any contract of employment between any Group Member and an Eligible Employee; 

 

	13.1.2.	unless expressly so provided in his contract of employment, an Eligible Employee has no right to be granted an Option; 

 

	13.1.3.	the benefit to an Eligible Employee of participation in the Plan (including, in particular but not by way of limitation, any Options held by him) shall not form any
part of his remuneration or count as his remuneration for any purpose and, for the purposes of his contract of employment, shall not be pensionable; and 

  

	13.1.4.	if an Eligible Employee ceases to be in Relevant Employment, he shall not be entitled to compensation for the loss of any right or benefit or prospective right or
benefit under the Plan (including, in particular but not by way of limitation, any Options held by him which lapse by reason of his ceasing to be in Relevant Employment) whether by way of damages for unfair dismissal, wrongful dismissal, breach of
contract or otherwise. 

 By applying for an Option an Option Holder is deemed to have agreed to the provisions of this Rule 13.

  

	14.	ADMINISTRATION OF PLAN 

  

	14.1.	Responsibility for administration 

 The
Company, and the Grantor where appropriate, shall be responsible for, and shall have the conduct of, the administration of the Plan. The Grantor may from time to time make, amend or rescind regulations for the administration of the Plan provided
that such regulations shall be consistent with the Rules and not cause any of the provisions of Schedule 3 which are relevant to the Plan to cease to be satisfied. 
  

	14.2.	Grantor’s decision final and binding 

The decision of the Grantor shall be final and binding in all matters relating to the administration of the Plan, including but not limited to the
resolution of any dispute concerning, or any inconsistency or ambiguity in the Rules or any document used in connection with the Plan. 
  

	14.3.	Trustees to consult with Board 

 Where the
Trustees have granted, or propose to grant, an Option, the Trustees shall consult with, and take account of the wishes of, the Board before making any determination or exercising any power or discretion under the Plan. 

 

	14.4.	Provision of information 

 The Trustees
and an Option Holder shall provide to the Company as soon as reasonably practicable such information as the Company reasonably requests for the purpose of complying with its obligations under paragraph 45 of Schedule 3. 

  
 -17-

	14.5.	Cost of Plan 

 The cost of introducing and
administering the Plan shall be met by the Company. The Company shall be entitled, if it wishes, to charge an appropriate part of such cost to a Subsidiary. The Company shall also be entitled, if it wishes, to charge to a Subsidiary the opportunity
cost of issuing Plan Shares to an Option Holder employed by the Subsidiary in relation to his exercise of an Option. 
  

	14.6.	Establishment of separate plans for overseas territories 

 The Company may establish separate plans to operate in overseas territories or in respect of overseas employees which are on substantially the same terms as the Plan but which make such modifications to
the terms as are necessary or expedient to take account of local tax, exchange control or securities laws in any one or more overseas territories (a “Modified Plan”). Rule 4 shall apply so as to limit the number of Plan Shares which may be
placed under Option under a Modified Plan and Plan Shares placed under an Option granted under a Modified Plan shall be included for the purpose of the limit set out in Rule 4. 
 For the avoidance of doubt, such plans shall not be intended to be subject to HM Revenue & Customs approval under Schedule 3 and no modifications made in accordance with this clause shall affect
the Plan. 
  

	14.7.	Data protection 

 The Company, the
Trustees and their agents may accumulate, hold and process Eligible Employees’ personal data and/or “sensitive personal data” within the meaning of applicable law (“Personal Data”). Personal Data includes, but is not limited
to, the information provided to Eligible Employees as part of the Invitation and any changes thereto, other appropriate personal and financial data about the Eligible Employees (e.g., name, home address, telephone number, date of birth, nationality,
job title, reason for termination of employment, and national insurance number), and information about the Eligible Employees’ participation in the Plan and Plan Shares obtained under the Plan from time to time. 

By accepting Options or Plan Shares under this Plan, the Eligible Employees give their explicit consent to their employer’s, the Trustees’ and
the Company’s accumulating, transferring and processing Personal Data as necessary or appropriate for Plan administration. Eligible Employees’ Personal Data will be retained only as long as is necessary to administer their participation in
the Plan. If applicable, by accepting Options or Plan Shares, Eligible Employees also gives their explicit consent to the Company’s transfer of Personal Data outside the country in which they work or reside and to the United States of
America, where the same level of data protection laws may not apply as in their home country. The legal persons for whom the Eligible Employees’ Personal Data are intended (and by whom their Personal Data may be transferred, processed or
exchanged) include the Company, its Subsidiaries (or former Subsidiaries as are deemed necessary), the Trustees, their respective agents, and any other person that the Company retains or utilises for compensation planning or Plan administration
purposes. The Eligible Employees have the right to request a list of the names and addresses of any potential recipients of their Personal Data and to review and correct their Personal Data by contacting their local Human Resources Representative.

 By accepting Options or Plan Shares under this Plan, the Eligible Employees acknowledge their understanding that the transfer of the
information outlined here is important to Plan administration. By accepting Options or Plan Shares under this Plan, Eligible Employees acknowledge that they are providing the consents herein on a purely voluntary basis and that, if they do not
consent or if they later seek to revoke their consent, it will adversely impact the ability of the Company to administer the Plan but it will not adversely impact their employment status or service with their employer. 

  
 -18-

	15.	AMENDMENT OF PLAN 

  

	15.1.	Power to amend Plan 

 Subject to Rules
15.2 to 15.3, the Board may from time to time amend the rules of the Plan. 
  

	15.2.	HM Revenue & Customs approval of amendments 

 Save for an amendment pursuant to Rule 8.5, an amendment to a Key Feature of the Plan shall not have effect at a time when the Plan is approved by HM Revenue & Customs, until the amendment has
been approved by HM Revenue & Customs under Schedule 3. 
  

	15.3.	Rights of existing Option Holders 

 An
amendment may not adversely affect the rights of an existing Option Holder except where the amendment has been approved by those existing Option Holders who would be adversely affected by the amendment in such manner as would be required by the
Company’s articles of association (with appropriate changes) if the Plan Shares subject to those Options which would be so adversely affected had been issued or transferred to them (so that they had become shareholders in the Company) and
constituted a separate class of shares. 
  

	15.4.	Notification of Option Holders 

 The Board
shall, as soon as reasonably practicable, notify each Option Holder of any amendment to the Rules under this Rule 15 and explain how it affects his position under the Plan. 

 

	16.	NOTICES 

  

	16.1.	Notice by Grantor 

 Save as provided for
by law and subject to Rule 16.4, any notice, document or other communication given by, or on behalf of, the Grantor or to any person in connection with the Plan shall be deemed to have been duly given if delivered to him at his place of work, if he
is in Relevant Employment if sent by e-mail to such e-mail address as may be specified by him from time to time, or sent through the post in a pre-paid envelope to the postal address last known to the Company to be his address and, if so sent, shall
be deemed to have been duly given on the date of posting. 
  

	16.2.	Deceased Option Holders 

 Save as provided
for by law and subject to Rule 16.4, any notice, document or other communication so sent to an Option Holder shall be deemed to have been duly given notwithstanding that such Option Holder is then deceased (and whether or not the Grantor has notice
of his death) except where his personal representatives have established their title to the satisfaction of the Grantor and supplied to the Grantor an e-mail or postal address to which notices, documents and other communications are to be sent.

  

	16.3.	Notice to Grantor 

 Save as provided for
by law and subject to Rule 16.4, any notice, document or other communication given to the Grantor in connection with the Plan shall be delivered or sent by post to the Company Secretary at the Company’s registered office or such other e-mail or
postal address as may from time to time be notified to Option Holders but shall not in any event be duly given unless and until it is actually received at the registered office or such e-mail or postal address and shall be deemed to have been duly
given on the date of such receipt. 

  
 -19-

	16.4.	Option Certificate and Notice of Option 

For the avoidance of doubt, the Option Certificate and Notice of Option may not be executed or delivered by e-mail or other such similar electronic
communication. 
  

	17.	GOVERNING LAW AND JURISDICTION 

  

	17.1.	Plan governed by English law 

 The
formation, existence, construction, performance, validity and all aspects whatsoever of the Plan, any term of the Plan and any Option granted under it shall be governed by English law. 

 

	17.2.	English courts to have jurisdiction 

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

	17.3.	Jurisdiction agreement for benefit of Company 

 The jurisdiction agreement contained in this Rule 17 is made for the benefit of the Company only, which accordingly retains the right to bring proceedings in any other court of competent jurisdiction.

  

	17.4.	Option Holder deemed to submit to such jurisdiction 

 By executing and returning the Option Certificate to the Grantor, an Option Holder is deemed to have agreed to submit to such jurisdiction. 

  
 -20-EX-4.1

 EXHIBIT 4.1 
 PORTER BANCORP, INC. 
 2006 STOCK INCENTIVE PLAN 

(as amended and restated as of April 8, 2013) 
 Porter Bancorp, Inc. (the “Holding Company”) hereby amends and restates its 2006 Stock Incentive Plan, originally adopted as of February 23, 2006 (the “Plan”), for the benefit of
its employees and the employees of its subsidiary, PBI Bank (the “Subsidiary”), as set forth below. This Plan provides for grants of nonqualified stock options and restricted stock. 

Section 1 — PURPOSE 
 The Holding Company adopts this compensation program for certain key Subsidiary employees to, among other things, (a) increase the profitability and growth of the Subsidiary; (b) provide
competitive executive compensation while obtaining the benefits of tax deferral; (c) attract and retain exceptional personnel and encourage excellence in the performance of individual responsibilities; and (d) motivate key employees to
contribute to the Subsidiary’s success. 
 Section 2 — DEFINITIONS 

For purposes of the Plan, the following terms shall have the meanings below unless the context clearly indicates otherwise: 

2.1 “Award” means an Option or Restricted Stock Award granted under the Plan. 

2.2 “Award Agreement” shall mean a written agreement, in such form as the Committee prescribes from time to time,
setting forth the terms and conditions of an Award. 
 2.3 “Board” means the Board of Directors of the Holding
Company. 
 2.4 “Change of Control” of the Holding Company or the Subsidiary means (i) an event or series
of events which have the effect of any “person” as such term is used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), other than any trustee or other fiduciary holding
securities of the Company under any employee benefit plan of the Company, becoming the “beneficial owner” as defined in Rule 13d-3 under the Exchange Act, directly or indirectly, of securities of the Holding Company or the Subsidiary
representing 50% or more of the combined voting power of the Subsidiary or the Holding Company’s then outstanding stock; (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute the board
of directors of the Holding Company cease for any reason to constitute a majority thereof, unless the election, or the nomination for election by the stockholders, of each new director was approved by a vote of at least two-thirds of the directors
then still in office who were directors at the beginning of the period; (iii) the business of the Subsidiary or the Holding Company is disposed of pursuant to a partial or complete liquidation, sale of assets, or otherwise. 

2.5 “Code” means the Internal Revenue Code of 1986, as it may be amended from time to time. 

2.6 “Committee” means the committee appointed by Board, if any, pursuant to Section 4.1 to administer the Plan. If
no committee has been appointed, Committee means the Board. 
 2.7 “Disability” means a physical or mental
condition of an Award recipient resulting in bodily injury or disease or mental disorder which renders an Award recipient incapable of continuing the further performance of the Award recipient’s normal employment activities with the Subsidiary
and which is expected to be permanent or continuing for a period of at least 12 months. The determination of the Committee on any question involving disability shall be conclusive and binding. 

 2.8 “Employee” means an employee of the Holding Company or of the
Subsidiary who has been designated by the Committee, under the criteria in Section 5, as eligible to participate in the Plan. 
 2.9 “Fair Market Value” shall have the meaning specified in Section 6.2. 
 2.10 “Option” means an option to purchase Stock granted under Section 6 of the Plan. All Options under the Plan shall be nonqualified stock options. 

2.11 “Option Period” means the period from the date of the grant of an Option to the date when the period for exercise
of an Option expires as stated in the terms of the Award Agreement. 
 2.12 “Optionee” means an Employee who
has been granted an option to purchase shares of Stock under the provisions of the Plan. 
 2.13 “Plan” means
the Porter Bancorp, Inc. Amended and Restated 2006 Stock Incentive Plan. 
 2.14 “Restriction Period” means the
period of time from the Grant Date of a Restricted Stock Award to the date when the restrictions placed on the Award in the Award Agreement lapse. 
 2.15 “Restricted Stock Award” or “Restricted Stock” means Stock which is granted under Section 8 of the Plan, subject to a Restriction Period and/or condition which,
if not satisfied, may result in the complete or partial forfeiture of such Stock. 
 2.16 “Stock” means the
Holding Company’s common stock of no par value per share. 
 2.17 “Termination of Employment” shall be
deemed to have occurred at the close of business on the last day on which an Employee is carried as an active employee on the records of the Holding Company or the Subsidiary. The Committee shall determine whether an authorized leave of absence, or
other absence on military or government service, constitutes severance of the employment relationship between the Holding Company or the Subsidiary and the Employee. 
 Section 3 — STOCK SUBJECT TO THE PLAN 
 3.1 Authorized
Stock. 
 (a) Subject to adjustment as provided in this Section, the aggregate number of shares of Stock
subject to an Award under the Plan shall be 1,263,050 shares. Stock delivered under the Plan may consist, in whole or in part, of authorized and unissued shares or of shares acquired from shareholders upon such terms as the Board deems appropriate
for reserve in connection with exercises hereunder. 
 (b) The maximum number of shares of Stock that may be
subject to all Options granted under the Plan to any one Employee under the Plan is 315,762 shares, subject to adjustment under Section 3.3. 
 3.2 Effect of Expirations. If any Award is wholly or partly canceled or forfeited, or terminates, expires or lapses, for any reason, the number of shares of Stock with respect to which the Award
can no longer be exercised or realized by the Employee shall again be available for grant of Awards under the Plan. If previously acquired shares of Stock are used to pay the exercise price of an Award, the number of shares available for grant of
Awards under the Plan shall be increased by the number of shares delivered as payment of such exercise price. If previously acquired shares of Stock are used to pay withholding taxes payable upon exercise or vesting of an Award, or if shares of
Stock that would be acquired upon exercise or vesting of an Award are withheld to pay the exercise price or withholding taxes payable upon exercise or vesting of such Award, the number of shares available for grant of Awards under the Plan shall be
increased by the number of shares delivered or withheld as payment of such withholding taxes. 
 3.3 Adjustments in
Authorized Shares Upon Changes in Capitalization, Merger or Certain Other Transactions. 

 (a) Change in Number of Shares Subject to Plan or Agreements. The number of
shares of Stock covered by each outstanding Award, and the number of shares of Stock that have been authorized for issuance under the Plan but as to which no Awards have yet been granted or that have been returned to the Plan upon cancellation or
expiration of an Award, as well as the price per share of Stock covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Stock resulting from a stock split, reverse
stock split, stock dividend, combination, recapitalization or reclassification of the Stock, or any other increase or decrease in the number of issued shares of Stock effected without receipt of consideration by the Holding Company; provided,
however, that conversion of any convertible securities of the Holding Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Committee, whose determination in that respect
shall be final, binding and conclusive. If any adjustment under this Section 3.3 would create a fractional share of Stock or a right to acquire a fractional share of Stock, such fractional share shall be disregarded and the number of shares of
Stock reserved under this Plan and the number subject to any Awards granted under this Plan shall be the next lower number of shares of Stock, rounding all fractions downward. Any adjustment under this Section shall be made in such a manner that
would not constitute a “modification” under Section 424(h) of the Code, even though that Code Section is not otherwise applicable. Except as expressly provided herein, no issuance by the Holding Company of shares of stock of any class
other than common, or securities convertible into shares of stock of any class other than common, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Stock subject to an Award.

 (b) Conversion Into Other Securities. If the Holding Company shall at any time merge, consolidate with or into
another corporation or association, or enter into a statutory share exchange or any other similar transaction in which shares of Stock are converted as a matter of law into securities and/or other property, except as otherwise provided in
(d) below, each Employee will thereafter receive, upon the exercise of an Option, the securities or property to which a holder of the number of shares of Stock then deliverable upon the exercise of such Option would have been entitled if such
Option had been exercised immediately prior to such merger, consolidation, or share exchange and the Holding Company shall take such steps in connection with such merger, consolidation or share exchange as may be necessary to ensure that the
provisions of this Plan shall thereafter be applicable, as nearly as is reasonably possible, in relation to any securities or property thereafter deliverable upon the exercise of such Option. 

(c) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Holding Company, the Board
shall notify each holder of an outstanding Option at least 15 days prior to such proposed action. To the extent it has not been previously exercised, an Option will terminate immediately prior to the consummation of such proposed action. 

(d) Change in Control. In the event of a Change in Control, each outstanding Option shall be assumed or an equivalent
option or right shall be substituted by the successor corporation or a Parent or subsidiary of such successor corporation. If such successor corporation does not agree to assume the outstanding Options or to substitute equivalent options or rights,
then each Option outstanding shall expire upon the Change in Control, and the Company shall give each holder of an outstanding Option 15 days advance notice of the Change in Control and termination of Options. At the direction and discretion of the
Committee, any unvested Awards shall become vested in full at the date such notice is given, the date of Change in Control, or such other date specified by the Holding Company. 
 Section 4 — ADMINISTRATION 
 4.1 Committee Governance.

 (a) This Plan shall be administered by the Board, unless the Board appoints a fewer number of its members to
act on its behalf as a committee hereunder (in either case, defined herein as the “Committee”). To the extent that the Board determines it desirable to qualify transactions hereunder as exempt under Rule 16b-3 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), each member of the Committee administering the Plan as to such transactions shall be a “Non-Employee Director” within the meaning of Rule 16b-3 promulgated under the Exchange Act. To
the extent that the Board determines it desirable to qualify Awards granted hereunder 

 
as “performance-based compensation” within the meaning of Section 162(m) of the Code, each member of the Committee administering the Plan as to such Awards shall be an
“outside director” within the meaning of Treasury Regulation Section 1.162-27(e)(3). The Committee shall be appointed from time to time by, and shall serve at the pleasure of, the Board. 

(b) The number of Committee members shall be determined by the Board. The Board shall add or remove members from the
Committee as the Board sees fit, and vacancies shall be filled by the Board. The Committee shall select one of its members as the chairperson of the Committee and shall hold meetings at such times and places as it may determine. The Committee may
appoint a secretary and, subject to the provisions of the Plan and to policies determined by the Board, may make such rules and regulations for the conduct of its business as it shall deem advisable. Written action of the Committee may be taken by a
majority of its members, and actions so taken shall be fully effective as if taken by a vote of a majority of the members at a meeting duly called and held. A majority of Committee members shall constitute a quorum for purposes of meeting. The act
of a majority of the members present at any meeting for which there is a quorum shall be a valid act of the Committee. 
  

	 	(a)	4.2 Committee to Interpret Plan. Subject to the express terms and conditions of the Plan, the Committee shall have sole power to (i) construe and interpret
the Plan; (ii) establish, amend or waive rules for its administration; (iii) to determine and accelerate the exercisability of any Option and the vesting in any Award; (iv) correct inconsistencies in the Plan or in any Award
Agreement, or any other instrument relating to an Award; (v) determine all factual matters respect to any Award; and (v) subject to the provisions of Section 9, amend the terms and conditions of any outstanding Award, to the extent
such terms and conditions are within the discretion of the Committee as provided in the Plan. All constructions of this Plan shall be made in a manner the Committee believes consistent with Awards under the Plan not constituting “deferred
compensation” within the meaning of Code Section 409A. Constructions, interpretations and rules for administration of the Plan by the entire Board shall take precedence over and control any construction or interpretation by the Committee.

 4.3 Exculpation. No member of the Board or the Committee shall be liable for actions or determinations
made in good faith with respect to the Plan, or for Awards under it. 
 4.4 Selection of Employees to Receive Awards. The
Committee shall have the authority to grant Awards from time to time to such Employees as may be selected by it in its sole discretion. 
 4.5 Decisions Binding. All determinations and decisions made by the Board or the Committee pursuant to the provisions of the Plan, including factual interpretations, shall be final, conclusive and
binding on all persons, including the Holding Company, its shareholders, Award recipients and their estates and beneficiaries. 

4.6 Award Agreements. Each Award under the Plan shall be evidenced by an Award Agreement which shall be signed by the Chairman of
the Committee and by the Employee, and shall contain such terms and conditions as may be approved by the Committee, which need not be the same in all cases. Any Award Agreement may be supplemented or amended in writing from time to time as approved
by the Committee, provided that the terms of such Agreement as amended or supplemented, as well as the terms of the original Award Agreement, are not inconsistent with the provisions of the Plan, provided that no amendment shall extend the original
exercise period of an Award that is an Option or reduce the exercise price of an Option. An Employee who receives an Option under the Plan shall not, with respect to the Option, be deemed to have become an Optionee, or to have any rights with
respect to the Option, unless and until the Employee has executed an Award Agreement or other instrument evidencing the Award and shall have delivered an executed copy thereof to the Holding Company, and has otherwise complied with the applicable
terms and conditions of the Award. The Committee may condition any Award grant upon the agreement by the Award recipient to such confidentiality, non-competition and non-solicitation covenants as the Committee deems appropriate. 

4.7 Limitation on Awards. No part of any Award shall be exercised or become vested to the extent the exercise, vesting, issuance
or lapse would cause the Award recipient to have compensation for any year in excess of one million dollars and which is nondeductible by the Holding Company or the Subsidiary pursuant to Code Section 162(m). No part of any Award shall vest or
become exercisable to the extent that such vesting, along with other compensation of the Award recipient, will cause the Award recipient to have an excess parachute payment under Section 280G of the Code. 

 Section 5 — ELIGIBILITY 

Employees of the Holding Company and its Subsidiaries who are expected to contribute substantially to the growth and profitability of the
Holding Company and its Subsidiaries are eligible for selection by the Committee under Section 4.4 to receive Awards. 

Section 6 — GRANT OF OPTIONS 
 6.1 Grant. All Options granted under the Plan shall be evidenced by an Award Agreement in such form as the Committee may from time to time approve. Subject to adjustment under Section 3.3, all
Options are subject to the terms and conditions of this Section 6 and such additional terms and conditions contained in the Award Agreement, which need not be the same in each case, not inconsistent with the provisions of the Plan, as the
Committee finds desirable. 
 6.2 Option Price. The purchase price per share of Stock covered by an Option shall be
determined by the Committee but shall not be less than 100% of the fair market value (the “Fair Market Value”) of such Stock on the date the Option is granted. The Fair Market Value shall be determined by the Committee, provided that if
the Holding Company’s stock is publicly traded on an established securities market at the time of determination, the Fair Market Value shall be the closing market price of the Holding Company’s Stock as reported on the date of grant, or,
if no trades were reported on that date, the closing price on the most recent trading day immediately preceding the date of the grant. If this Stock is not publicly traded on an established securities market, Fair Market Value shall be determined in
good faith by the Committee, by reasonable application of a reasonable valuation method, considering any and all information the Committee determines relevant, consistent with Code Section 409A and Treasury Regulations thereunder. 

6.3 Option Period. The Option Period shall be determined by the Committee, and unless otherwise specifically provided in the Award
Agreement, no Option shall be exercisable later than ten years from the date of grant. Options may expire prior to the end of the Option Period due to the Optionee’s Termination of Employment as provided in Section 7, or in accordance with
any provision of the Award Agreement. No Option may be exercised at any time unless such Option is valid and outstanding as provided in this Plan. 
 6.5 Nontransferability of Options. Except as otherwise provided in an Award Agreement, no Option shall be transferable by the Optionee otherwise than by will or by the laws of descent and
distribution, and such Option shall be exercisable during the Optionee’s lifetime only by the Optionee. 
 SECTION 7 —
EXERCISE OF OPTIONS 
 7.1 Exercise. An Option may be exercised, so long as it is valid and outstanding, from time
to time in part or as a whole, subject to any limitations with respect to the number of shares for which the Option may be exercised at a particular time and to such other conditions (e.g., exercise could be conditioned on performance) as the
Committee in its discretion may specify upon granting the Option or as otherwise provided in this Section 7. 
 7.2
Method of Exercise. To exercise an Option, the Optionee or the other person(s) entitled to exercise the Option shall give written notice of exercise to the Committee, specifying the number of full shares to be purchased. Such notice shall be
accompanied by payment in full for the Stock being purchased plus required withholding tax as provided in Section 12, (1) in cash; (2) if permitted by the Committee, in its sole discretion, payment in full or in part may be made in
the form of Stock owned by the Optionee for at least 6 months (based on the Fair Market Value of the Stock on the date the Option is exercised) evidenced by negotiable Stock certificates registered either in the sole name of the Optionee or the
names of the Optionee and spouse; (3) if permitted under 

 
the terms of the Award Agreement, by electing that the Holding Company withhold shares that would otherwise be issued on exercise of the Option in payment of the purchase price, or if so limited
in the Award Agreement, solely in payment of required withholding taxes; or (4) in any combination of the forgoing permitted methods with respect to a particular Option. No shares of Stock shall be issued unless the Optionee has fully complied
with the provisions of this Section 7.2. 
 7.3 Termination of Employment. After an Employee’s Termination of
Employment, an Option may be exercised, subject to adjustment as provided in Sections 3.3 or 11.8, only with respect to the number of shares of Stock which the Employee could have acquired by an exercise of the Option immediately before the
Termination of Employment but in no event after the expiration date of the Option as specified in the applicable Award Agreement. Except to the extent shorter or longer periods are stated in the Award Agreement, an Employee’s right to exercise
an Option upon Termination of Employment shall terminate: 
  

	 	(i)	At the expiration of one year in the event of Disability of the Employee; or 

 

	 	(ii)	At the expiration of one year after the Employee’s death if the Employee’s Termination of Employment occurs by reason of death; any Option exercised under
this subparagraph (ii) may be exercised in full by the legal representative of the estate of the Employee or by the person or persons who acquire the right to exercise such Option by bequest or inheritance; or 

 

	 	(iii)	No later than 30 days after the Employee’s Termination of Employment for any reason other than Disability or death, provided that in the event the Committee
determines that an Employee’s employment has been terminated for Cause, the Employee shall forfeit any and all unexercised Options immediately upon the Termination of Employment. For purposes of this Plan, “Cause” means the
Employee’s (i) willful failure to substantially perform such Employee’s reasonably assigned duties on behalf of the Holding Company or Subsidiary, (ii) repeated gross negligence in performing such Employee’s duties,
(iii) illegal conduct in performing such Employee’s duties, (iv) willful actions contrary to the Holding Company or a Subsidiary’s interest, (v) repeated refusal to comply with the reasonable and lawful instructions of
management of the Holding Company or a Subsidiary, or (vi) violation of the obligations imposed on the Employee under any confidentiality or solicitation covenants to which the Employee is bound under the terms of the Award Agreement or
otherwise. 

 SECTION 8 — RESTRICTED STOCK AWARDS 

8.1 Grant. All Restricted Stock Awards granted under the Plan shall be evidenced by an Award Agreement in such form as the
Committee may from time to time approve. All Restricted Stock Awards are subject to the terms and conditions in this Section 8, and such additional terms and conditions contained in the Award Agreement, which need not be the same in each case,
not inconsistent with the provisions of the Plan, as the Committee finds desirable. The Holding Company shall issue, in the name of each Employee who is granted a Restricted Stock Award, a certificate for the shares of Stock granted in the Award
(subject to Section 8.3), as soon as practicable after the grant date. The Holding Company shall hold such certificates for the Employee’s benefit until the Restriction Period lapses or the Restricted Stock is forfeited to the Holding
Company in accordance with the Award Agreement. 
 8.2 Restriction Period. The Restriction Period shall be determined by
the Committee, and shall commence on the grant date and expire at the time specified in the Award Agreement. The Committee may provide in an Award Agreement that a Restriction Period that has not otherwise expired will expire immediately upon the
retirement, death or Disability of the Employee. The Committee shall not retain the discretion to lengthen the Restriction Period, if such change in the Restriction Period would have the effect of delaying the date on which the Award ceases being
subject to a “substantial risk of forfeiture” within the meaning of Sections 83(b) and 409A of the Code and therefore when it is subject to Federal income tax. Unless otherwise provided in the Award Agreement, in the event of an
Employee’s Termination of Employment during the Restriction Period for any reason, the Employee’s rights to the Stock subject to the Restricted Stock Award shall be forfeited and all such Stock shall immediately be surrendered to the
Holding Company. 

 8.3 Rights of Employee. Subject to the terms and conditions of the Award Agreement,
an Employee to whom Restricted Stock has been awarded shall have the right to receive dividends thereon during the Restricted Period and to enjoy all other stockholder rights with respect thereto, except that (i) the Holding Company shall
retain custody of any certificates evidencing the Restricted Stock during the Restricted Period, and (ii) the Employee may not sell, transfer, pledge, exchange, hypothecate or otherwise dispose of the Restricted Stock during the Restricted
Period. Any attempt by an Employee to sell, transfer, pledge, assign or otherwise dispose of Restricted Stock shall cause immediate forfeiture of the Award. 
 8.4 Expiration of Restriction Period. At the expiration of the Restriction Period, the restrictions contained in Section 8.3 and in the Award Agreement shall, except as otherwise specifically
provided in the Award Agreement, expire and the Holding Company shall delivery any certificates evidencing the Stock to the Employee. 
 8.5 Nontransferability. No Restricted Stock Award shall be transferable other than by will or the laws of descent and distribution until any restrictions applicable to such Award have lapsed and a
certificate evidencing the Employee’s ownership of the stock free of restrictions has been issued in accordance with Section 8.4. 
 Section 9 — AMENDMENTS AND TERMINATION 
 9.1 Amendments and
Termination. The Committee may terminate, suspend, amend or alter the Plan, but no action of the Committee may: 
 (a) Impair or adversely affect the rights of an Award recipient under an Award, without the Award recipient’s consent; or 

(b) Decrease the exercise price of an Option or extend the period for exercise. 

9.2 Conditions on Awards. In granting an Award, the Committee may establish any conditions that it determines are consistent with
the purposes and provisions of the Plan. 
 9.3 Selective Amendments. Any amendment or alteration of the Plan may be
limited to, or may exclude from its effect, particular classes of Award recipients. 
 Section 10 — RESTRICTIONS ON
TRANSFER 
 10.1 Restriction on Transfer. No Award recipient shall sell, assign, transfer or otherwise dispose of any
of the Stock issued to him upon the exercise of an Option (“Option Stock”) or as a Restricted Stock Award until (i) with respect to a Restricted Stock Award, the Award has become fully vested, and (ii) he has delivered to the
Holding Company an irrevocable written offer to sell any such shares of Stock at any time within 60 days after delivery of the offer and at a price per share equal to Fair Value, and (iii) the Holding Company fails to accept such offer within
the 60-day period, in which case the Stock may be sold by the Award recipient on the terms offered to the Holding Company within 60 days of the earlier of the expiration of the Holding Company’s 60 day acceptance period or the date the Holding
Company notifies the Award recipient that it will not exercise its right to purchase the Stock. A bona fide written offer from an independent prospective buyer shall be deemed to be the Fair Value solely for purposes of this Section 10.1. To
accept the offer, the Holding Company shall deliver notice of its acceptance of its offer within 60 days after its receipt of the offer. Payment for the offered Award Stock shall be made as provided in Section 10.2. The restrictions imposed by
this Section 10.1 shall not apply to the transfer by operation of law to a deceased Award recipient’s personal representative of the Award recipient’s interest in the Stock (but the Stock shall continue to be subject to these
restrictions in the hands of the personal representative). 
 10.2 Payment for Stock. The Holding Company shall make
payment in cash for any Stock that it purchases pursuant to this Section 10 within 30 days after the date when the Holding Company delivers notice of its acceptance of the offer pursuant to Section 10.1. The Award recipient shall surrender
certificates representing the offered Stock at the time the Holding Company makes such payment. 

 10.3 Termination of Restrictions. The restrictions imposed by this Section 10
shall not apply (i) at any time after the closing of the issuance of the Holding Company’s shares of Stock to the public pursuant to an initial public offering registered with the U.S. Securities and Exchange Commission, and (ii) at
any time after a Change of Control results in the Stock being converted into the stock of another entity, which stock has a public securities market. 
 Section 11 — GENERAL PROVISIONS 
 11.1 Unfunded Status of
Plan. The Plan is intended to constitute an “unfunded” plan for incentive compensation, and the Plan is not intended to constitute a plan subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, and
shall not extend, with respect to any payments not yet made to an Employee, any rights that are greater than those of a general creditor of the Holding Company. 
 11.2 Transfers, Leaves of Absence and Other Changes in Employment Status. For purposes of the Plan (i) a transfer of an Employee from the Holding Company to a Subsidiary, or vice versa, or
from one Subsidiary to another; or (ii) a leave of absence, duly authorized in writing by the Holding Company or a Subsidiary, for military service or sickness, or for any other purpose approved by the Holding Company or a Subsidiary if the
period of such leave does not exceed 90 days; or (iii) any leave of absence in excess of 90 days approved by the Holding Company, shall not be deemed a Termination of Employment. The Committee, in its sole discretion subject to the terms of the
Award Agreement, shall determine the disposition of all Awards made under the Plan in all cases involving any substantial change in employment status other than as specified herein. 

11.3 Restrictions on Distribution of Stock. The Committee may require persons receiving Stock pursuant to any Award under the Plan
to represent to and agree with the Holding Company in writing that the individual is acquiring the shares for investment without a view to distribution thereof. No shares shall be issued or transferred pursuant to an Award unless the Committee
determines, in its sole discretion, that such issuance or transfer complies with all relevant provisions of law, including but not limited to, the (i) limitations, if any, imposed in the state of issuance or transfer, (ii) restrictions, if
any, imposed by the Securities Act of 1933, as amended, the Exchange Act, and the rules and regulations promulgated thereunder, and (iii) requirements of any stock exchange upon which the Holding Company’s shares may then be listed. The
certificates for such shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer. 
 11.4 Assignment Prohibited. Subject to the provisions of the Plan and the Award Agreement, no Award shall be assigned, transferred, pledged or otherwise encumbered by the Award recipient otherwise
than by will or by the laws of descent and distribution, and Options shall be exercisable, during the Optionee’s lifetime, only by the Optionee. Awards shall not be pledged or hypothecated in any way, and shall not be subject to any execution,
attachment, or similar process. Any attempted transfer, assignment, pledge, hypothecation or other disposition of an Option or of Restricted Stock before applicable restrictions have lifted, or the levy of any process upon an Award, shall be null,
void and without effect. 
 11.5 Other Compensation Plans. Nothing contained in the Plan shall prevent the Holding
Company from adopting other compensation arrangements. 
 11.6 Limitation of Authority. No person shall at any time have
any right to receive an Award hereunder and no person shall have authority to enter into an agreement on behalf of the Holding Company for the granting of an Award or to make any representation or warranty with respect thereto, except as granted by
the Board or the Committee. Award recipients shall have no rights in respect to any Award except as set forth in the Plan and the applicable Award Agreement. 
 11.7 No Right to Employment. Neither the action of the Holding Company in establishing the Plan, nor any action taken by it or by the Board or the Committee under the Plan or any Award Agreement,
or any provision of the Plan, shall be construed as giving to any person the right to be retained in the employ of the Holding Company or any Subsidiary. 

 11.8 Change of Control. If granted by Committee in the Award Agreement, in the event
of a Change of Control, Options granted under the Plan shall become exercisable in full whether or not otherwise exercisable at such time, and the Restriction Period for any Restricted Stock Award shall end. 

11.10 Option Recipients are Not Shareholders Until Option is Exercised. The person or persons entitled to exercise, or who have
exercised, an Option shall not be entitled to any rights as a shareholder of the Holding Company with respect to any shares subject to the Option until such person or persons shall have become the holder of record of such shares. 

11.11 Headings. The headings in this Plan have been inserted solely for convenience of reference and shall not be considered in
the interpretation or construction of this Plan. 
 11.12 Governing Law. The validity, interpretation, construction and
administration of this Plan shall be governed by the laws of the Commonwealth of Kentucky. 
 Section 12 — TAXES

 12.1 Tax Withholding. All Award recipients shall make arrangements satisfactory to the Committee to pay to the Holding
Company at the time of exercise any federal, state or local taxes required to be withheld with respect to such shares. If such Award recipient shall fail to make such tax payments as are required, the Holding Company and its Subsidiaries shall, to
the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Award recipient. 
 12.2 Share Withholding. If permitted by the Committee in or pursuant to an Award Agreement, the tax withholding obligation may be satisfied by the Holding Company retaining shares of Stock with a
fair market value equal to the amount required to be withheld. 
 Section 13 — EFFECTIVE DATE OF PLAN

 The Plan shall be effective on the date (the “Effective Date”) when the Board adopts the Plan 

Section 14 — TERM OF PLAN 
 Unless terminated earlier by the Committee, no Award shall be granted under the Plan more than ten years after the Effective Date as defined in Section 13. 

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