Document:

Exhibit 4.1

 

SCHEDULE: THE RULES OF THE PRUDENTIAL PLC 2016 RECRUITMENT PLAN

 

1.                                      INTERPRETATION AND CONSTRUCTION

 

1.1                               Definitions

 

In this Plan, the following expressions have the meanings shown next to them:

 

CA 2006 - Companies Act 2006;

 

Cause -  any reason which justifies the Executive’s summary dismissal;

 

Committee -  the remuneration committee of the board of directors of the Company;

 

Company - Prudential plc registered in England with No. 1397169;

 

Control -  the same meaning as in section 995 (Meaning of “control”) of the Income Tax Act 2007;

 

Dealing Day - a day on which the UK Stock Exchange is open for business;

 

Executive –  Anne Richards or, after her death, her personal representatives;

 

Exercise Period - in relation to each instalment of the Option, the period specified in the Option Agreement;

 

Financial Year -  a financial year of the Company within the meaning of section 390 (A  company’s financial year)  of the CA 2006;

 

Grant Date -  the date on which the Option is granted;

 

Group:

 

(i)                                     for the purposes of Rule 7 (Leaving employment), the Company and its Subsidiaries together with any other company of which not less than 20% of its equity share capital (within the meaning of section 548 (Equity share capital)  of the CA 2006) is beneficially owned (directly or indirectly) by the Company and its Subsidiaries and which the Committee has resolved for the time being should be treated for the purposes of that Rule as a member of the Group; and

 

(ii)                                  for all other purposes, the Company and its Subsidiaries,

 

and the expression member of the Group will be construed accordingly;

 

Holding Company - the same meaning as in section 1159 (Meaning of “subsidiary” etc) of the CA 2006;

 

 

Option Agreement - the agreement between the Company and the Executive to which these Rules are scheduled;

 

Option - the right to receive Shares contained in the Option Agreement and these Rules;

 

Option Shares - the Shares over which the Option is granted;

 

Permitted Reason -  in relation to the Executive: 

 

(i)                                     her retirement;

 

(ii)                                  her ill-health, injury or disability;

 

(iii)                               her redundancy within the meaning of the Employment Rights Act 1996;

 

(iv)                              the company by which she is employed ceasing to be a member of the Group; or

 

(v)                                 the business, or part of the business, in which she works being transferred to a transferee which is not a member of the Group.

 

Plan -  the Prudential plc 2016 Recruitment Plan;

 

Release Date - in relation to each instalment of the Option means the first day of the relevant Exercise Period;

 

Rules -  the rules of the Plan (as amended from time to time);

 

Service Factor -  the fraction of which:

 

(i)                                     the numerator is the number of complete days in the relevant period (see below) prior to the date of cessation of employment (where Rule 7 applies) or the relevant date (in any case where Rule 8 (Change of Control and liquidation)  applies (with relevant date having the meaning given to it in that Rule)); and

 

(ii)                                  the denominator is the total number of complete days in the relevant period;

 

and for these purposes the relevant period is the period which starts with the Grant Date and ends with the Release Date applicable to the relevant instalment of the Option but ignoring any provision in the Rules which deems the Release Date to have occurred earlier than it would otherwise have done but for that provision;

 

Share -  a fully- paid ordinary share in the capital of the Company;

 

Subsidiary - the same meaning as in section 1159 (Meaning of “subsidiary” etc)  of the CA 2006;

 

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UK Listing Authority -  the Financial Conduct Authority acting in its capacity as the competent authority for the purposes of Part 6 (Official List) of the Financial Services and Markets Act 2000 or such other person as is from time to time appointed to be the competent authority for the purposes of that Act;

 

UK Stock Exchange - London Stock Exchange plc or any recognised investment exchange for the purposes of the Financial Services and Markets Act 2000 which may take over the function of the London Stock Exchange plc;

 

Unvested Option -  the Option, or (as the case may be) any instalment of the Option, which is not Vested (and Unvested shall be construed accordingly);

 

Vested Option - any instalment of the Option in respect of which the Release Date has occurred and Vested shall be construed accordingly; and

 

Vested Shares - the Option Shares subject to a Vested Option.

 

1.2                               Meaning of ceasing to be employed within the Group

 

(A)                               For the purposes of Rule 7 (Leaving employment)  but subject to (B), the Executive is to be treated as ceasing to be employed within the Group when she is no longer employed by any company which is a member of the Group. For the avoidance of doubt, the Executive will cease to be employed by a member of the Group if the company by which she is employed ceases to be a member of the Group.

 

(B)                               If the Executive is away from work:

 

(i)                                     in circumstances where she has a contractual or statutory right to return to work at the end of the period of leave; or

 

(ii)                                  because of a period of leave approved by the Committee for this purpose, 

 

the Executive will be treated for the purposes of Rule 7 (Leaving employment)  as continuing to be employed within the Group (whether or not she is) unless and until the Committee is satisfied that there is no longer any reasonable expectation that the Executive will return to work and not to have ceased to be so employed if she returns to work at the end of that period of leave.

 

1.3                               Construction of Rules

 

(A)                               Any reference in the Rules:

 

(i)                                     to the singular includes the plural and vice versa; and

 

(ii)                                  to an enactment includes that enactment as for the time being amended or re­enacted.

 

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(B)                               Any reference in a Rule to a number or letter in parenthesis (for example, (B)) is a reference to the paragraph in that Rule with that number or letter.

 

(C)                               The headings to the Rules are for reference purposes only and are not to be used in construing the meaning of the Rules.

 

1.4                               Administration

 

The Company will administer the Option.

 

1.5                               Disputes

 

The Committee’s decision on the construction of the Option Agreement and the Rules and on any disputes arising under the Plan is final and binding on all persons.

 

2.                                      ELIGIBILITY

 

These Rules shall only apply in respect of the Option granted to the Executive under the  Option Agreement.

 

3.                                      VESTING

 

3.1                               Vesting of Options

 

The Option will vest in instalments. Each instalment will vest on the first day of the Exercise Period set out in the Option Agreement, which shall be the Release Date for that instalment.

 

3.2                               Adjustment for dividends

 

(A)                               When an Option vests, then the number of Option Shares which become Vested Shares (if any) will be increased in accordance with (C) to reflect the dividends (and associated tax credits) paid by the Company during the relevant period.

 

(B)                               The relevant period is the period starting on the Grant Date and ending on the date on which the Vested Shares are transferred to the Executive (or to someone chosen by her).

 

(C)                               Where (A) applies, the number of Option Shares that become Vested Shares will be increased, as the Committee may decide, either:

 

(i)                                     by assuming that the dividends that would have been paid on those Shares that become Vested Shares (had the Executive been the owner of them) would (together with the associated tax credits) have been reinvested in accordance with the Company’s dividend reinvestment programme (if any) and otherwise on each dividend payment date; or

 

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(ii)                                  by such number of Shares as have a market value equal to the amount of the relevant dividends (and associated tax credits referred to in (A) above) and for this purpose the market value of a Share will be the average of the closing middle-market quotations of a Share, as derived from the Daily Official List of the UK Stock Exchange, for the five Dealing Days immediately before the date on which the Shares are to be transferred to the Executive (or to someone chosen by her); or

 

(iii)                               by applying the amount referred to in (C)(ii) in purchasing Shares in the market.

 

4.                                      RESTRICTIONS UPON EXERCISE, RELEASE AND FORFEITURE

 

4.1                               General

 

Rules 4 and 5 override the other Rules except where otherwise stated.

 

4.2                               Restrictions upon exercise and vesting

 

The Executive may not exercise (or be deemed to exercise) any instalment of the  Option or have Shares transferred in respect of the Option: 

 

(i)                                     unless it is a Vested Option; and

 

(ii)                                  before the applicable Release Date, except where Rule 7 (Leaving employment)  or Rule 8 (Change of Control and liquidation)  applies.

 

4.3                               Lapsing of Options

 

(A)                               If all or any instalment of the Option lapses under any Rule, it (or, as the case may be, the relevant instalment) may not be exercised subsequently under any other Rule other than as referred to in (B).

 

(B)                               The Executive may release the Option in consideration of the grant of a new option in accordance with Rule 9 (Substitute Options following change of Control)  within the time allowed by that Rule, notwithstanding the provisions of Rule 8 (Change of Control and liquidation).

 

4.4                               Share dealing code

 

(A)                               Unless the exercise of the Option and the subsequent delivery of Shares in respect of it do not give rise to any dealings which would be prohibited under the UK Listing Authority’s Model Code, no instalment of the Option may be exercised on any day which is in a Close Period. If the last day of any Exercise Period is in a Close Period, the relevant Exercise Period shall be extended so that it ends seven days after the last day of that Close Period.

 

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(B)                           For the purpose of this Rule 4.4, a Close Period means a period when dealings in Shares by the Executive would be prohibited under the Model Code on dealings or under any statute, regulation or similar code to which the Company is subject.

 

(C)                           For the avoidance of doubt the restriction in (A) will cease as soon as the buying or selling of securities by the Executive would no longer breach the Model Code.

 

5.                                  ADJUSTMENT AND CLAWBACK OF OPTIONS

 

5.1                           Adjustment of Options

 

Prior to the Release Date applicable to any instalment of the Option, the Committee may, in its absolute discretion, determine that the relevant instalment should be adjusted if it decides that:

 

(i)                                a business decision taken during the period between the Grant Date and the relevant Release Date, by the business unit in which the Executive works at the time of the decision, has resulted in a material breach of any law, regulation, code of practice or other instrument which applies to companies or individuals within the business unit;

 

(ii)                             there is a materially adverse restatement of the consolidated financial statements of the Group in respect of any Financial Year which (in whole or in part) forms part of the period between the Grant Date and the relevant Release Date; and/or

 

(iii)                          any matter arises which the Committee believes affects or may affect the reputation of the Company or any member of the Group.

 

5.2                           Postponement of Release Date

 

If the Committee is considering whether to use its powers in relation to an instalment of the Option in accordance with Rule 5.1, the Release Date of that instalment shall be postponed until the Committee has made its determination, provided that the Committee shall confirm to the Executive the latest date the Release Date may be postponed to.

 

5.3                           Adjustment of Options

 

If the Committee determines that it should use its powers under Rule 5.1, the Committee may determine that any instalment of the Option which has not yet Vested be adjusted, by reducing the number of Shares in respect of that instalment of the Option as the Committee believes to be appropriate (including to zero).  The Shares which may be adjusted may include any Shares which represent any dividends in accordance with Rule 3.2. If the Executive is affected by an adjustment, she will be notified of this in writing as soon as practicable.

 

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5.4                           Clawback

 

This Rule 5.4 applies in circumstances where at any time before the second anniversary of the Release Date of the relevant instalment of the Option, the Committee determines in its absolute discretion that either (i) there is a materially adverse restatement of the consolidated financial statements of the Group in respect of any Financial Year which (in whole or part) forms part of the period between the Grant Date and the second anniversary of the relevant Release Date or (ii) it becomes apparent that a material breach of a law or regulation took place during that period which resulted in significant harm to the Company or its reputation.

 

If this Rule 5.4 applies then the Committee may, to the extent that it considers appropriate, taking account of the extent of the Executive’s responsibility for the relevant restatement or breach, determine in its absolute discretion in respect of any instalment of the Option which has Vested that the Executive must repay to the Company by way of clawback an amount in cash up to the net value of the Shares she received on exercise of the relevant instalment of the Option (based on the Company’s share price on that date) after deductions made for tax and employee social security contributions.

 

Following any such determination the Executive shall make payment of the relevant amount within 28 days of the Executive being given notice of such determination.  If the Executive should fail to make payment within that period then, without prejudice to any other remedies which the Company may have, the Committee may make a reduction of an equivalent amount to (i) any unvested options or awards which the Executive may have under any employee share scheme operated by the Company and/or (ii) any future bonus payment which would otherwise have been payable and/or (iii) any unvested instalment of the Option, and/or (iv) any salary payments or other remuneration which are due or would otherwise have been payable, in each case, to the extent permitted under applicable law.

 

6.                                  EXERCISE OF OPTION OR RELEASE OF SHARES

 

6.1                           Exercise of Option

 

(A)                           The Executive may exercise each vested instalment of the Option during the relevant Exercise Period or at such other times as the Rules permit.  Where any instalment of the Option is exercisable, it may be exercised in whole or in part and from time to time.

 

(B)                           Each instalment of the Option may be exercised by written notice addressed to the Group HR Director at the Company’s registered office or to such nominee as the Company may designate.  Unless the Company and the Executive agree a later date, the date of exercise of an instalment of the Option will be the date on which the notice of exercise, complete in all material respects, is so received.

 

(C)                           The exercise price must be paid at the same time as the notice to exercise the Option is given.  Alternatively, the Executive may enter into any arrangement that the Company may approve for the payment of the exercise price in cash, including arrangements for the sale of sufficient Shares to satisfy the exercise price.

 

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(D)                           A Vested Option, if and to the extent not previously exercised, will be deemed to have been exercised on the last day of the applicable Exercise Period or, if earlier, on the dates specified in Rules 7 (Leaving employment)  and 8 (Change of Control and liquidation).

 

6.2                           Release or transfer of Vested Shares

 

(A)                           Subject to Rule 6.3, within 30 days of the date of exercise (or deemed exercise) of any instalment of the Option, the Company must transfer the Shares to which the Executive is entitled on that exercise (or deemed exercise), or arrange for those Shares to be transferred, to the Executive or to someone else chosen by the Executive.

 

(B)                           The obligations under (A) are, however, subject to:

 

(i)                                any necessary consents or approvals as may be required by any competent authority having first been obtained;

 

(ii)                             the Executive having complied with the terms of the Option; and

 

(iii)                          if applicable, some of the Shares being sold in accordance with Rule 6.3.

 

6.3                           Withholding obligations

 

(A)                           This Rule applies if the Committee considers that any person may have to make a payment to the appropriate authorities on account of the Executive’s liability to tax, duties, social security contributions or other amounts in respect of any of the following:

 

(a)                            any instalment of the Option becoming exercisable or being exercised; 

 

(b)                            Option Shares becoming Vested Shares; or

 

(c)                             any other event in connection with the Option.

 

(B)                           The Executive must either pay that person the amount which it needs to pay (or has paid) the appropriate authorities or agree to other arrangements approved by the Company including, without limitation, as to the sale of sufficient Shares to meet such payment. If she does not do so within such period as is specified by the Company, then she will be deemed to have authorised the disposal of such number of her Option Shares as is necessary to ensure that the net proceeds of sale of those Shares are as nearly as possible equal to the amount due to (or paid to) the appropriate authorities, or as are required to ensure that the Executive complies with her obligations, and the payment of the net proceeds of sale to those authorities.

 

6.4                           Cash or Share Alternative

 

(A)                           This Rule applies in either of the following circumstances:

 

(i)                                if the Company and the Executive agree that it should; or

 

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(ii)                             if the issue or transfer of Shares in respect of the Award (or any instalment of the Option) would be contrary to any laws or regulations or would involve the Company in costs which, in the opinion of the Committee, are disproportionate; or

 

(iii)                          if the issue or transfer of Shares would result in tax disadvantages for either the Executive or the Company which might be mitigated by the application of this Rule.

 

(B)                           The Committee may decide that, instead of the Shares to which the Executive would otherwise be entitled, the Executive will be paid the cash alternative by her employing company. The cash alternative will be found using the formula:

 

(MV x C) - E

 

where   MV                           is the market value of a Share on such date as the Committee may select falling within a period of 30 days starting with the date the Option is exercised;

 

C                                   is the number of Vested Shares or, as the case may be, the number of Vested Shares in respect of which the relevant instalment of the Option is exercised or is deemed to have been exercised; and

 

E                                    is an amount equal to the expenses (as determined by the Company) that would have been incurred in selling on the date on which the market value of a Share is to be determined a number of Shares equal to the number of Vested Shares or, as the case may be, the number of Vested Shares in respect of which the Option is exercised or is deemed to have been exercised.

 

(C)                           Subject to Rule 6.3, as soon as reasonably practicable after the Committee has made its decision, the Company must pay, or procure that the Executive’s employing company pays, the Executive the cash alternative.

 

(D)                           The Company may determine that some or all of the amount otherwise payable to the Executive under (B) will instead be satisfied by the issue or transfer to the Executive (or to someone else chosen by her) of Shares. For each such Share, the amount otherwise payable will be reduced by the market value (determined by the Committee in accordance with Rule 6.4(B)) of a Share.

 

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7.                                      LEAVING EMPLOYMENT

 

7.1                               Leaving employment - general

 

(A)                               If the Executive’s employment within the Group ends for any reason whatsoever her Option will lapse on the date on which her employment ends (the termination date)  unless any of the following provisions of Rule 7 apply.

 

(B)                               If all of the following conditions are satisfied:

 

(i)                                     the Executive ceases to be employed within the Group;

 

(ii)                                  but for this Rule, her Option would lapse (in whole or in part) on the termination date; and

 

(iii)                               under the laws of the country in which the Executive works or lives or to which she is subject, such lapsing is unlawful or may render the Executive’s employer liable to some disadvantage,

 

the Committee may take such action as it considers appropriate (to the minimum extent necessary to comply with those laws or to ensure that the employer is not liable to that disadvantage) including (without limitation) deciding that the Option will become a Vested Option and that the Executive may exercise her Option.

 

7.2                               Leaving employment - Vested Options

 

(A)                               This Rule applies if the Executive’s employment within the Group ends at a time when she holds a Vested Option and her employment ends for any reason other than for Cause or because of her death.

 

(B)                               The Executive may exercise that Vested Option in accordance with Rule 6.1 (Exercise of Option)  during the relevant Exercise Period. On the last day of the Exercise Period, the Vested Option will, if and to the extent not already exercised, be deemed to have been exercised.

 

7.3                               Leaving employment - Unvested Options

 

(A)                               This Rule applies if the Executive’s employment within the Group ends at a time when she holds an Unvested Option and her employment ends:

 

(i)                                     for a Permitted Reason; or

 

(ii)                                  for any reason other than a Permitted Reason or death or Cause and the Committee, acting fairly and reasonably, decides that this Rule will apply in relation to that Unvested Option.

 

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(B)                               The Executive may retain her Unvested Option and it will continue to vest at the normal date for vesting under Rule 3.1, unless the Committee decide that the Option will vest on the date of cessation of employment.

 

(C)                               If any instalment of the Option becomes a Vested Option in accordance with this Rule then:

 

(i)                                     the number of Shares comprised in that instalment will be reduced by the applicable Service Factor, unless the Committee decide that a higher number should vest; and

 

(ii)                                  Rule 7.2(B) will apply with the necessary changes.

 

7.4                               Death of the Executive

 

(A)                               This Rule applies if the Executive dies:

 

(i)                                     whilst employed within the Group; or

 

(ii)                                  after having ceased to be employed within the Group but holding the Option (or an instalment of it) which has not lapsed.

 

(B)                               If the Executive dies holding an Unvested Option then that Option will become a Vested Option at the date of her death but the number of Shares vesting in relation to each instalment of the Unvested Option will be reduced by the applicable Service Factor, unless the Committee decide that a higher number should vest.

 

(C)                               If the Executive dies holding a Vested Option or an Unvested Option that becomes a Vested Option according to (B), Rule 7.2(B) will apply with the necessary changes as if references to the Release Date were to the date of the Executive’s death or such later date as the Committee may select having regard to the practicalities of the winding up of the Executive’s estate.

 

8.                                      CHANGE OF CONTROL AND LIQUIDATION

 

8.1                               Exercise of Options or release of Shares

 

(A)                               This Rule applies in any of the following circumstances:

 

(i)                                     if any person (either alone or together with any person acting in concert with him) obtains Control of the Company or, already having Control of the Company, makes a general offer to acquire all of the Shares other than those which are already owned by him and/or any person acting in concert with him;

 

(ii)                                  if the court approves a compromise or arrangement between the Company and its members under section 899 (Court sanction for compromise or arrangement)  of the CA 2006; or

 

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(iii)                               if a resolution is passed for the winding-up, or an order is made for the compulsory winding-up, of the Company;

 

and the date on which any of these events happens is called for the purposes of Rule 8 the relevant date.

 

(B)                               If the Executive has an instalment of the Option that is Unvested, the instalment will become Vested. The number of Shares in respect of which that instalment of the Option will become Vested will be reduced by the applicable Service Factor unless the Committee decide that it should become Vested in respect of a greater number of Shares.

 

(C)                               If the Executive has an instalment of the Option that is Vested or becomes Vested according to this Rule, then she may exercise it in accordance with Rule 6.1 (Exercise of Option)  during the appropriate period (see (E)); on the last day of that period, the relevant instalment of the Option will, if and to the extent not already exercised, be deemed to have been exercised.

 

(D)                               Where the Executive exercises (or is deemed to exercise) her Option in accordance with this Rule in a case falling within (A)(iii), she will be entitled to share in the Company’s assets in the same way as she would have been entitled to had the Shares been registered in her name before the resolution was passed or the order was made.

 

(E)                                The appropriate period is:

 

(i)                                     in a case falling within (A)(i), the period of one month starting on the relevant date;

 

(ii)                                  in a case falling within (A)(ii), such period as the Committee may decide starting not earlier than the date on which the compromise or arrangement is sanctioned by the court and ending not later than one month after the date on which it becomes effective; and

 

(iii)                               in a case falling within (A)(iii), the period of one month starting on the relevant date.

 

8.2                               Lapsing of Options

 

Unless it is exchanged (whether before or after the date on which it would otherwise lapse) for a new option under Rule 9 (Substitute Options following change of Control), the Executive’s Option will lapse if and to the extent that it does not become a Vested Option in accordance with Rule 8.1(B).

 

8.3                               Overriding provision

 

(A)                               This Rule applies if all of the following conditions are met:

 

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(i)                                     the events referred to in Rule 8 are part of an arrangement which will mean that the Company will be under the Control of another company;

 

(ii)                                  the persons who owned Shares in the Company immediately before the Change of Control will immediately afterwards own more than 75% of the shares in that other company; and

 

(iii)                               the Executive is to be offered a substitute option under Rule 9 (Substitute Options following change of Control).

 

(B)                               Notwithstanding the earlier provisions of this Rule 8, the Committee may decide that any Unvested instalment of the Option will not become Vested.

 

9.                                      SUBSTITUTE OPTIONS FOLLOWING CHANGE OF CONTROL

 

9.1                               Application of Rule 9

 

Rule 9 applies if a company (the acquiring company):

 

(i)                                     obtains Control of the Company as a result of making a general offer to buy the whole of the issued share capital of the Company which is made on a condition which, if met, will give the acquiring company Control of the Company; or

 

(ii)                                  obtains Control of the Company as a result of making a general offer to buy all the Shares; or

 

(iii)                               obtains Control of the Company as a result of a compromise or arrangement approved by the court under section 899 (Court sanction for compromise or arrangement)  of the CA 2006; or

 

(iv)                              becomes bound or entitled to acquire shares in the Company under Chapter 3  (“Squeeze-out” and “sell-out”)  of the CA 2006.

 

The acquiring company’s offer under (i) or (ii) need not extend to shares which are already owned by it, its Holding Company or by its Subsidiaries or those of its Holding Company.

 

9.2                               Release of Options

 

With the agreement of the acquiring company, the Executive may release her Option (the old Option)  in return for the grant to her of another option (the new Option)  over shares in the acquiring company or some other company.

 

9.3                               Deemed release

 

If the Executive’s old Option is Unvested (in whole or in part), the Committee may determine that the Executive will be deemed to have agreed to the release of her old

 

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Option (or the relevant instalment of it) in return for the grant of a new Option under  Rule 9.

 

9.4                               Consequences of release

 

If the Executive is granted a new Option under Rule 9:

 

(i)                                   the new Option will vest or be exercisable in the same way as the old Option;

 

(ii)                                the new Option will be subject to the provisions of the Plan as they have effect in relation to the old Option immediately before its release;

 

(iii)                             the Rules will apply to the new Option as if references to Shares were references to the shares in respect of which the new Option is granted;

 

(iv)                            the Rules will apply to the new Option as if references to the Company (including any such references as occur in expressions which are defined in Rule 1.1 (Definitions)  and are used in those Rules) were references to the company in respect of whose shares the new Option is granted; and

 

(v)                               the Rules will apply with such adjustments as the Committee may decide.

 

10.                               VARIATION OF CAPITAL

 

10.1                        Application of Rule 10

 

Rule 10 applies if there is a variation in the share capital of the Company or in such  other circumstances as the Committee considers appropriate.

 

10.2                        Adjustment of Options

 

The Committee may adjust the Option (or any instalment of it) in any way that it thinks appropriate. The Committee’s decision will be final.

 

10.3                        Notification of adjustment

 

The Company must tell the Executive of any adjustment to the Option as soon as possible after the Committee’s decision.

 

11.                               GENERAL

 

11.1                        Non-transferability of Options

 

The Option is personal to the Executive and her personal representatives. It will lapse immediately if:

 

(i)                                   the Executive transfers it or creates any interest in it in favour of any third party; or

 

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(ii)                                a bankruptcy order is made in respect of her or any similar event occurs under the laws of any country other than England.

 

11.2                        Relationship to contract of employment

 

(A)                              Participation in the Plan is a matter entirely separate from, and does not affect, the Executive’s terms of employment. If the Executive ceases to be entitled to exercise the Option or to receive Shares because her employment ends (whether fairly, unfairly, lawfully, unlawfully or wrongfully) or for any other reason, she will not be entitled to any compensation by reference to the rights granted to, or the benefits capable of being received by, her under the Plan or for the loss of such rights or benefits.

 

(B)                              Participation in the Plan does not affect the Executive’s rights (whether beneficially or adversely) under any pension scheme which relates to her employment. In particular (but without limitation), the contributions payable to such a pension scheme by her employer, and the benefits provided to or in respect of the Executive under the pension scheme, are not to be increased as a result of the Executive’s participation in the Plan or the benefits received by her under the Plan. By accepting the Option, the Executive agrees to these terms.

 

11.3                        Notices and circulars to shareholders

 

The Company need not give the Executive copies of any documents sent by the Company to its shareholders. However, the Company must give the Executive written notice of any events which entitle her to exercise her Option under Rule 8 (Change of Control and liquidation).

 

11.4                        Costs

 

The Company must pay the costs of preparing and running the Plan.

 

11.5                        Notices to the Executive

 

(A)                              Any notice or document to the Executive may be given either personally or through the internal post or by sending it by ordinary post, e-mail or facsimile or by other electronic means (including the internet and the intranet) to the address or number given by her.

 

(B)                              Where a notice or document is sent to the Executive by ordinary post, it will be treated as being received 72 hours after it was put into the post properly addressed and stamped. In all other cases, the notice or document will be treated as received when it is given.

 

11.6                        Notices to the Company

 

(A)                              A notice or document to the Company must be given by such means as the Committee may from time to time decide. Such means may include, but are not limited to, delivering it personally or through the internal post to the recipient’s registered office or

 

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principal place of business or by sending it by facsimile or e-mail or other electronic means (including the internet and the intranet).

 

(B)                              Unless otherwise agreed by the Company, a notice or document will only be effective once it is received by the recipient.

 

12.                               CHANGING AND ENDING THE PLAN

 

12.1                        Power of change - general

 

Subject to the limitation in Rule 12.2, the Committee may change the Plan in any way.

 

12.2                        Power of change - limitations

 

Subject to the exceptions in Rule 12.3, no change may be made which would affect adversely any of the subsisting rights of the Executive except either with her written consent.

 

12.3                        Power of change - exceptions

 

The Committee may:

 

(i)                                     change the Plan to take account of any changes to any relevant law;

 

(ii)                                  change the Plan to get or keep favourable tax, exchange control or regulatory treatment for the Executive or any member of the Group;

 

(iii)                               make minor changes to the Plan to ease its administration or to correct clerical errors; and

 

(iv)                              make changes to the Plan to allow it to operate effectively in other jurisdictions.

 

12.4                        Notification of changes

 

The Company must tell the Executive about any change which affects her rights.

 

16Exhibit 4.2

 

PRIVATE AND CONFIDENTIAL

 

DATED

 

17 May  2017

 

PRUDENTIAL SERVICES LIMITED (1)

 

and

 

Mark FitzPatrick (2)

 

and

 

PRUDENTIAL PLC (3)

 

 

EXECUTIVE CONTRACT OF EMPLOYMENT

 

 

 

PARTIES

 

(1)             PRUDENTIAL SERVICES LIMITED of Laurence Pountney Hill, EC4R 0HH (the “Company”) and

 

(2)             Mark FitzPatrick (the “Executive”)

 

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

 

1.                  DEFINITIONS

 

In this Agreement unless the context otherwise requires:-

 

“Board” means the Board of Directors of Prudential;

 

“Commencement Date” means 17 July 2017;

 

“Prudential Group” means Prudential and each of its subsidiaries where “subsidiaries” is defined by section 1159 of the Companies Act 2006.

 

2.                  APPOINTMENT

 

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

 

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

 

(3)             The Company does not operate a fixed retirement age but, subject to the rules of any Company Pension Scheme of which the Executive is a member, the Executive may give the Company notice to voluntarily retire at any time from the age of 55.

 

3.                  DUTIES OF THE EXECUTIVE

 

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

 

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

 

(3)             Where notice of termination has been served by either the Company or the Executive whether in accordance with clause 2(2) or otherwise, the Company shall be under no 

 

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obligation to provide work for or assign any duties to the Executive for the whole or any part of the relevant notice period and may require his:

 

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

 

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

 

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

 

For the avoidance of doubt, the Company may appoint another individual to carry out the duties of the Executive during all or part of the notice period.

 

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

 

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

 

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

 

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

 

(iii)            the Board will endeavor to ensure that no internal or external communications prejudice the outcome of any investigation or the future employment prospects of the Executive.

 

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

 

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

 

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

 

4.                  PERFORMANCE OF DUTIES

 

(1)             During the continuance of the Appointment, the Executive shall (unless prevented by ill-health or accident or otherwise directed by the Board) devote such of his time, attention and abilities 

 

3

 

to the business and interests of the Company or any other company in the Prudential Group as the proper performance of his duties hereunder demands.

 

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

 

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

 

5.                  REMUNERATION

 

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

 

(2)             The Executive shall be eligible to be admitted to membership of the DC Section of the Prudential Staff Pension Scheme details of which have been supplied to the Executive, subject to the trust deed and rules from time to time governing the scheme. The Scheme is contracted-in to the state second pension scheme and so no contracting-out certificate applies to the Appointment.  The Executive’s pensionable pay for the purposes of determining employee contributions and Prudential’s contributions will be the Executive’s Base Salary.   Provision of death in service benefits may be subject to the provision of medical evidence satisfactory to the provider.  The Company reserves the right to amend the DC Section of the Prudential Staff Pension Scheme from time to time.

 

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

 

(4)             If the Executive needs to undergo a medical examination at the request of the Company, the cost of this will be met by the Company and the Company’s medical adviser will be entitled to receive a copy of any report produced, to discuss it with the doctor who produced it and to discuss its conclusions with the Company.

 

(5)             If the Executive is incapable of performing his duties by reason of injury sustained wholly or partly as a result of negligence, nuisance or breach of any statutory duty on the part of any third party, only when and to the extent that compensation is recovered for loss of earnings from that third party by legal action or otherwise in so far as it is not repayable to the 

 

4

 

Department of Social Security, the Executive shall (insofar as lawful) repay to the Company the amount of any sick pay he has received.

 

(6)             The Executive, his partner and his unmarried children below the age of 18 (or 24 if in full time education) will be eligible free of charge to participate with effect from the Commencement Date until termination of employment in the Prudential Group medical insurance scheme(s) as from time to time are in force.

 

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

 

(a)              the Annual Incentive Plan (“AIP”);

 

(b)             long term incentive plans operated by the Group;

 

(c)              the Prudential Services Ltd Share Incentive Plan (“SIP”); and

 

(d)             the Prudential Savings Related Share Option Scheme (SAYE Scheme”),

 

details of which have been supplied to the Executive.  The remuneration plans are kept under  review and may be altered or withdrawn from time to time.

 

Any benefits under these plans are non-pensionable.

 

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

 

(9)             So far as permitted by law, the Executive shall be entitled to an interest free season ticket loan.

 

(10)      Should the Company withdraw its offer of employment between the date of this contract and the commencement of employment, the Executive shall be entitled to receive a payment equivalent to one year’s salary and twelve months maximum AIP opportunity to be paid in cash within one month of the date of the offer being withdrawn.

 

6.                  EXPENSES

 

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

 

7.                  HOLIDAY

 

The Executive shall be entitled to paid time off for breaks away from work in each calendar year (in addition to statutory holidays) as the proper performance of his duties hereunder permits and in

 

5

 

accordance with the guidelines laid down by the Company from time to time. Under normal circumstances this is not expected to exceed six weeks in any year.

 

8.                  POST TERMINATION RESTRICTIONS

 

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

 

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

 

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

 

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

 

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

 

(3)             The Executive acknowledges and agrees that:

 

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

 

6

 

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

 

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

 

9.                  TERMINATION OF EMPLOYMENT

 

(1)             The Appointment may be terminated by either party by notice given in accordance with Clause 2.  The Company may in its absolute discretion decide to terminate the employment by making a payment of Base Salary in lieu of any unexpired period of notice and, if any payment by the Company is appropriate, to make the payment either in one lump sum on termination or for payment to be made in equal monthly installments on the usual salary payment dates over the notice period.  During the period of payment of these monthly installments the Executive will be expected to mitigate the position by taking reasonable steps to secure  alternative employment commensurate with his skills and experience.  Should the Executive secure alternative employment which commences while the monthly installments are being paid the Executive will be required to notify the Company.  Should the Executive’s new gross monthly pay be the same or more than the monthly installments the Company will cease to be liable to the Executive in respect of the remainder of the installments.  Should the Executive’s new gross monthly pay be less than the monthly installments the monthly installments will continue but may be reduced to take account of the Executive’s new gross monthly pay.

 

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

 

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

 

(b)              if he is guilty of serious misconduct or behavior such as to bring any company in the Prudential Group into disrepute (including but without limitation the commission of a criminal offence (excluding Road  Traffic offences for which a non custodial sentence is imposed) or commits any serious and material breach of any of his obligations to the Company or any other company in the Prudential Group (whether under this Agreement or otherwise); or

 

(c)               if he refuses or neglects to comply with any lawful orders or directions reasonably given to his by the Company or the Board and that failure  to comply has material adverse consequences for the Prudential Group; or

 

(d)              if he fails, refuses or neglects to perform substantially the duties of the position which he holds under this Agreement or engages in willful or reckless conduct injurious to or damaging to the reputation of the Company or any other company within the Prudential Group; or

 

7

 

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

 

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

 

(3)             The Executive shall have no claim against the Company for damages or otherwise by reason of  lawful termination pursuant to clause 9(2).  Any delay or forbearance by the Company in exercising any such right of termination shall not constitute a waiver of its rights in respect of any subsequent occurrence giving rise to such a right.

 

(4)             Without prejudice to the Transfer of Undertakings (Protection of Employment) Regulations 2006, if at any time during this Agreement the Executive’s employment is terminated by reason of reconstruction or amalgamation of the Company and the Executive is offered employment with any concern or undertaking resulting from such reconstruction or amalgamation upon terms and conditions no less favourable than the terms of this Agreement and of similar status then the Executive shall have no claim against the Company in respect of the termination of the Appointment.

 

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

 

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

 

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

 

10.           EXECUTIVE’S POSITION AS DIRECTOR

 

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

 

(2)             The Executive shall be covered by the same level of Directors’ and Officers’ protection and indemnities as all other UK-based Executive Directors.

 

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

 

(4)             Upon termination of the Appointment for whatever reason the Executive shall forthwith in writing resign his position as a director of Prudential and of any other company within the

 

8

 

Prudential Group, without compensation for loss of office but without prejudice to any other claims the Executive may have for damages for breach of this Agreement.

 

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

 

11.           CONFIDENTIAL INFORMATION

 

(1)             The Executive shall not, either during the continuance of the Appointment or thereafter, use to the detriment or prejudice of the Company or any other company within the Prudential Group or, except in the proper course of his duties, divulge to any person any Confidential Information concerning the business or affairs of the Company or any other company within the Prudential Group which may have come to his knowledge during his employment.  For the purposes of this Agreement “Confidential Information” shall include, without limitation,  details of suppliers and their terms of business, details of customers, prices charged to and terms of business with customers, marketing plans and sales forecasts, any proposals relating to the acquisition or disposal of a company or business or any part thereof, details of employees and officers and of the remuneration and other benefits paid to them and any other information which may reasonably be classified as confidential, but so that these instructions shall cease to apply to any information which shall become available generally otherwise than through the fault of the Executive.  The restrictions in this clause shall not apply:

 

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

 

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

 

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

 

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

 

12.    GRATUITIES AND CODES OF CONDUCT

 

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

 

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

 

9

 

13.    DATA PROTECTION

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)    for all sensitive personal data, any processing in connection with any merger, sale or acquisition of a company or business in which the Company or any company within the Prudential Group is involved or any transfer of any business in which the Executive performs his duties; and

 

(iv)    for all sensitive personal data, any processing in the legitimate interests of the Company or any company within the Prudential Group.

 

14.           ASSIGNMENT

 

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

 

15.           STATUTORY REQUIREMENTS

 

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

 

16.           NOTICES

 

Any notice or other document to be given hereunder shall either be delivered personally or be sent by first class recorded delivery or fax.  The address for service on the Company shall be its 

 

10

 

registered office for the time being and the address for service on the Executive shall be his last known place of residence.  A notice shall be deemed to have been served as follows:-

 

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

 

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

 

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

 

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

 

17.           MISCELLANEOUS

 

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

 

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

 

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

 

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

 

	
SIGNED by
    	
/s/ Mike Wells
    	
 
    
	
 
    	
 
    
	
on behalf of PRUDENTIAL PLC
    	
 
    
	
 
    	
 
    
	
In the presence of:-
    	
/s/ Timothy Rolfe
    	
 
    
	
 
    
	
Date:
    	
May 2017
    
	
 
    	
 
    
	
SIGNED by Mark FitzPatrick
    	
/s/ Mark FitzPatrick
    	
 
    
				

 

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In the presence of:-
    	
/s/ Timothy Rolfe
    	
 
    
	
 
    
	
Date:
    	
May 2017
    
	
 
    
	
SIGNED by
    	
/s/ Timothy Rolfe
    	
 
    
	
 
    	
 
    
	
on behalf of PRUDENTIAL SERVICES LIMITED
    
	
 
    	
 
    
	
In the presence of:-
    	
/s/ H Perera
    	
 
    
	
 
    
	
Date:
    	
May 2017
    
				

 

SCHEDULE I

 

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

 

(a)              Remuneration -  Clause 5(1)

 

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

 

(c)               Holidays -  Clause 7

 

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

 

(e)               Pension Arrangements -  Clause 5(2)

 

(f)                Notice -  Clause 2(2)

 

(g)               Job Title -  Clause 2(1)

 

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

 

(i)                  Disciplinary Procedure - There are no disciplinary rules applicable to senior executives so that any disciplinary action relevant to the Executive will be considered and handled according to the particular circumstances and the Executive’s position.  Should the Executive be dissatisfied with any disciplinary decision he should appeal in writing to the Chief Executive of the Prudential Group.

 

(j)                 Date of Commencement of Employment - The date of commencement of this appointment is the Commencement Date - Clause 1.

 

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(k)              Place of work - Clause 4(3).

 

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

 

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PRIVATE AND CONFIDENTIAL

 

DATED

 

1 March 2018

 

PRUDENTIAL SERVICES LIMITED (1)

 

and

 

James Turner (2)

 

and

 

PRUDENTIAL PLC (3)

 

 

EXECUTIVE CONTRACT OF EMPLOYMENT

 

 

 

PARTIES

 

(1)             PRUDENTIAL SERVICES LIMITED of Laurence Pountney Hill, EC4R 0HH (the “Company”) and

 

(2)             James Turner (the “Executive”)

 

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

 

1.                  DEFINITIONS

 

In this Agreement unless the context otherwise requires:-

 

“Board” means the Board of Directors of Prudential;

 

“Commencement Date” means 1 March 2018;

 

“Prudential Group” means Prudential and each of its subsidiaries where “subsidiaries” is defined by section 1159 of the Companies Act 2006.

 

2.                  APPOINTMENT

 

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

 

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

 

(3)             The Company does not operate a fixed retirement age but, subject to the rules of any Company Pension Scheme of which the Executive is a member, the Executive may give the Company notice to voluntarily retire at any time from the age of 55.

 

3.                  DUTIES OF THE EXECUTIVE

 

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

 

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

 

(3)             Where notice of termination has been served by either the Company or the Executive whether in accordance with clause 2(2) or otherwise, the Company shall be under no

 

2

 

obligation to provide work for or assign any duties to the Executive for the whole or any part of the relevant notice period and may require his:

 

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

 

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

 

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

 

For the avoidance of doubt, the Company may appoint another individual to carry out the duties of the Executive during all or part of the notice period.

 

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

 

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

 

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

 

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

 

(iii)           the Board will endeavor to ensure that no internal or external communications prejudice the outcome of any investigation or the future employment prospects of the Executive.

 

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

 

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

 

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

 

4.                  PERFORMANCE OF DUTIES

 

(1)             During the continuance of the Appointment, the Executive shall (unless prevented by ill-health or accident or otherwise directed by the Board) devote such of his time, attention and abilities

 

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to the business and interests of the Company or any other company in the Prudential Group as the proper performance of his duties hereunder demands.

 

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

 

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

 

5.                  REMUNERATION

 

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

 

(2)             The Executive shall be eligible to be admitted to membership of the DC Section of the Prudential Staff Pension Scheme details of which have been supplied to the Executive, subject to the trust deed and rules from time to time governing the scheme. The Scheme is contracted-in to the state second pension scheme and so no contracting-out certificate applies to the Appointment.  The Executive’s pensionable pay for the purposes of determining employee contributions and Prudential’s contributions will be the Executive’s Base Salary.  Provision of death in service benefits may be subject to the provision of medical evidence satisfactory to the provider.  The Company reserves the right to amend the DC Section of the Prudential Staff Pension Scheme from time to time.

 

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

 

(4)             If the Executive needs to undergo a medical examination at the request of the Company, the cost of this will be met by the Company and the Company’s medical adviser will be entitled to receive a copy of any report produced, to discuss it with the doctor who produced it and to discuss its conclusions with the Company.

 

(5)             If the Executive is incapable of performing his duties by reason of injury sustained wholly or partly as a result of negligence, nuisance or breach of any statutory duty on the part of any third party, only when and to the extent that compensation is recovered for loss of earnings from that third party by legal action or otherwise in so far as it is not repayable to the

 

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Department of Social Security, the Executive shall (insofar as lawful) repay to the Company the amount of any sick pay he has received.

 

(6)             The Executive, his partner and his unmarried children below the age of 18 (or 24 if in full time education) will be eligible free of charge to participate with effect from the Commencement Date until termination of employment in the Prudential Group medical insurance scheme(s) as from time to time are in force.

 

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

 

(a)              the Annual Incentive Plan (“AIP”);

 

(b)              long term incentive plans operated by the Group;

 

(c)               the Prudential Services Ltd Share Incentive Plan (“SIP”); and

 

(d)              the Prudential Savings Related Share Option Scheme (SAYE Scheme”),

 

details of which have been supplied to the Executive.  The remuneration plans are kept under review and may be altered or withdrawn from time to time.

 

Any benefits under these plans are non-pensionable.

 

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

 

(9)             So far as permitted by law, the Executive shall be entitled to an interest free season ticket loan.

 

(10)      Should the Company withdraw its offer of employment between the date of this contract and the commencement of employment, the Executive shall be entitled to receive a payment equivalent to one year’s salary and twelve months maximum AIP opportunity to be paid in cash within one month of the date of the offer being withdrawn.

 

6.                  EXPENSES

 

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

 

7.                  HOLIDAY

 

The Executive shall be entitled to paid time off for breaks away from work in each calendar year (in addition to statutory holidays) as the proper performance of his duties hereunder permits and in

 

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accordance with the guidelines laid down by the Company from time to time. Under normal circumstances this is not expected to exceed six weeks in any year.

 

8.                  POST TERMINATION RESTRICTIONS

 

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

 

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

 

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

 

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

 

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

 

(3)             The Executive acknowledges and agrees that:

 

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

 

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

 

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

 

9.                  TERMINATION OF EMPLOYMENT

 

(1)             The Appointment may be terminated by either party by notice given in accordance with Clause 2.  The Company may in its absolute discretion decide to terminate the employment by making a payment of Base Salary in lieu of any unexpired period of notice and, if any payment by the Company is appropriate, to make the payment either in one lump sum on termination or for payment to be made in equal monthly installments on the usual salary payment dates over the notice period.  During the period of payment of these monthly installments the Executive will be expected to mitigate the position by taking reasonable steps to secure alternative employment commensurate with his skills and experience.  Should the Executive secure alternative employment which commences while the monthly installments are being paid the Executive will be required to notify the Company.  Should the Executive’s new gross monthly pay be the same or more than the monthly installments the Company will cease to be liable to the Executive in respect of the remainder of the installments.  Should the Executive’s new gross monthly pay be less than the monthly installments the monthly installments will continue but may be reduced to take account of the Executive’s new gross monthly pay.

 

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

 

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

 

(b)             if he is guilty of serious misconduct or behavior such as to bring any company in the Prudential Group into disrepute (including but without limitation the commission of a criminal offence (excluding Road Traffic offences for which a non custodial sentence is imposed) or commits any serious and material breach of any of his obligations to the Company or any other company in the Prudential Group (whether under this Agreement or otherwise); or

 

(c)              if he refuses or neglects to comply with any lawful orders or directions reasonably given to his by the Company or the Board and that failure to comply has material adverse consequences for the Prudential Group; or

 

(d)             if he fails, refuses or neglects to perform substantially the duties of the position which he holds under this Agreement or engages in willful or reckless conduct injurious to or damaging to the reputation of the Company or any other company within the Prudential Group; or

 

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

 

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

 

(3)             The Executive shall have no claim against the Company for damages or otherwise by reason of  lawful termination pursuant to clause 9(2).  Any delay or forbearance by the Company in exercising any such right of termination shall not constitute a waiver of its rights in respect of any subsequent occurrence giving rise to such a right.

 

(4)             Without prejudice to the Transfer of Undertakings (Protection of Employment) Regulations 2006, if at any time during this Agreement the Executive’s employment is terminated by reason of reconstruction or amalgamation of the Company and the Executive is offered employment with any concern or undertaking resulting from such reconstruction or amalgamation upon terms and conditions no less favourable than the terms of this Agreement and of similar status then the Executive shall have no claim against the Company in respect of the termination of the Appointment.

 

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

 

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

 

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

 

10.           EXECUTIVE’S POSITION AS DIRECTOR

 

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

 

(2)             The Executive shall be covered by the same level of Directors’ and Officers’ protection and indemnities as all other UK-based Executive Directors.

 

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

 

(4)             Upon termination of the Appointment for whatever reason the Executive shall forthwith in writing resign his position as a director of Prudential and of any other company within the 

 

8

 

Prudential Group, without compensation for loss of office but without prejudice to any other claims the Executive may have for damages for breach of this Agreement.

 

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

 

11.           CONFIDENTIAL INFORMATION

 

(1)             The Executive shall not, either during the continuance of the Appointment or thereafter, use to the detriment or prejudice of the Company or any other company within the Prudential Group or, except in the proper course of his duties, divulge to any person any Confidential Information concerning the business or affairs of the Company or any other company within the Prudential Group which may have come to his knowledge during his employment.  For the purposes of this Agreement “Confidential Information” shall include, without limitation,  details of suppliers and their terms of business, details of customers, prices charged to and terms of business with customers, marketing plans and sales forecasts, any proposals relating to the acquisition or disposal of a company or business or any part thereof, details of employees and officers and of the remuneration and other benefits paid to them and any other information which may reasonably be classified as confidential, but so that these instructions shall cease to apply to any information which shall become available generally otherwise than through the fault of the Executive.  The restrictions in this clause shall not apply:

 

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

 

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

 

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

 

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

 

12.           GRATUITIES AND CODES OF CONDUCT

 

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

 

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

 

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13.           DATA PROTECTION

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(iii)           for all sensitive personal data, any processing in connection with any merger, sale or acquisition of a company or business in which the Company or any company within the Prudential Group is involved or any transfer of any business in which the Executive performs his duties; and

 

(iv)          for all sensitive personal data, any processing in the legitimate interests of the Company or any company within the Prudential Group.

 

14.           ASSIGNMENT

 

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

 

15.           STATUTORY REQUIREMENTS

 

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

 

16.           NOTICES

 

Any notice or other document to be given hereunder shall either be delivered personally or be sent by first class recorded delivery or fax.  The address for service on the Company shall be its 

 

10

 

registered office for the time being and the address for service on the Executive shall be his last known place of residence.  A notice shall be deemed to have been served as follows:-

 

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

 

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

 

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

 

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

 

17.           MISCELLANEOUS

 

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

 

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

 

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

 

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

 

	
SIGNED by
    	
/s/Mike Wells
    	
 
    
	
 
    	
 
    
	
on behalf of PRUDENTIAL PLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
In the presence of:-
    	
/s/ T Rolfe
    	
 
    
	
 
    
	
 
    
	
Date:
    	
March 2018
    
	
 
    
	
 
    
	
SIGNED by James Turner
    	
/s/ S J Turner
    	
 
    
				

 

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In the presence of:-
    	
/s/ T Rolfe
    	
 
    
	
 
    
	
 
    
	
Date:
    	
March 2018
    
	
 
    
	
 
    
	
SIGNED by
    	
/s/ T Rolfe
    	
 
    
	
 
    	
 
    
	
on behalf of PRUDENTIAL SERVICES LIMITED
    
	
 
    	
 
    
	
 
    	
 
    
	
In the presence of:-
    	
/s/ R Knight
    	
 
    
	
 
    
	
 
    
	
Date:
    	
March 2018
    
				

 

SCHEDULE I

 

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

 

(a)             Remuneration -  Clause 5(1)

 

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

 

(c)              Holidays -  Clause 7

 

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

 

(e)              Pension Arrangements -  Clause 5(2)

 

(f)               Notice -  Clause 2(2)

 

(g)              Job Title -  Clause 2(1)

 

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

 

(i)                 Disciplinary Procedure - There are no disciplinary rules applicable to senior executives so that any disciplinary action relevant to the Executive will be considered and handled according to the particular circumstances and the Executive’s position.  Should the Executive be dissatisfied with any disciplinary decision he should appeal in writing to the Chief Executive of the Prudential Group.

 

(j)                Date of Commencement of Employment - The date of commencement of this appointment is the Commencement Date - Clause 1. The date of continuous service (i.e. date of joining the Prudential Group) is 15 November 2010.

 

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(k)             Place of work - Clause 4(3).

 

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

 

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