Document:

EX-4.3

Exhibit 4.3

Barclays PLC

Rules

of the

Barclays PLC

Unapproved Incentive Share Option Plan

Ref: A4/LLW/540042.05

001BB/46856

 

 

Contents

	 	 	 	 	 	 	 
	 	 	Clause	 	Page No.	 
	1.	 	Definitions and Interpretation
	 	 	1	 
	 	 	 
	 	 	 	 
	2.	 	Grant of Options
	 	 	3	 
	 	 	 
	 	 	 	 
	3.	 	Limitations on Grant of Options
	 	 	4	 
	 	 	 
	 	 	 	 
	4.	 	Exercise of Options
	 	 	5	 
	 	 	 
	 	 	 	 
	5.	 	Limitations on Exercise of Options
	 	 	7	 
	 	 	 
	 	 	 	 
	6.	 	Time for Exercise of Options
	 	 	7	 
	 	 	 
	 	 	 	 
	7.	 	Takeovers and Liquidations
	 	 	8	 
	 	 	 
	 	 	 	 
	8.	 	Variations in the Share Capital of the Company
	 	 	9	 
	 	 	 
	 	 	 	 
	9.	 	Administration of the Plan
	 	 	9	 
	 	 	 
	 	 	 	 
	10.	 	Amendment of the Plan
	 	 	10	 
	 	 	 
	 	 	 	 
	11.	 	Additional Provisions
	 	 	10	 

 

 

Barclays PLC

Unapproved Incentive Share Option Plan

	1.	 	Definitions and Interpretation
	 
	1.1	 	In the Plan the following words and expressions have the meanings set opposite them:
	 
	 	 	“Adoption Date” means 26 April 2000 being the date on which the Plan is adopted by the
Company;
	 
	 	 	“Announcement Date” means the date on which the Company announces its annual, half-yearly or
if relevant quarterly results to the London Stock Exchange in any year within the Operative
Period;
	 
	 	 	“Any Other Executive Plan” means any employees’ share scheme other than the Plan adopted by
the Company in general meeting which provides for the acquisition of or subscription for
shares of the Company by or on behalf of selected employees and/or directors, and which is
not linked to an SAYE contract;
	 
	 	 	“Any Other Plan” means any employees’ share scheme other than the Plan adopted by the
Company in general meeting which provides for the acquisition of or subscription for shares
in the Company by or on behalf of employees or directors;
	 
	 	 	“Auditors” means the auditors for the time being of the Company or in the event of there
being joint auditors such one of them as the Board shall select;
	 
	 	 	“BGI” means Barclays Global Investors UK Holdings Limited;
	 
	 	 	“BGI Plan” means the Barclays Global Investors Equity Ownership Plan adopted by the Company
on 26 April 2000;
	 
	 	 	“BGI Shares” means “A” Ordinary Shares in the capital of BGI;
	 
	 	 	“Barclays Bank” means Barclays Bank PLC;
	 
	 	 	“Board” means the board of directors for the time being of the Company or a committee of the
board of directors of the Company appointed to administer the Plan PROVIDED THAT if any
person obtains Control of the Company the Board or the relevant committee as appropriate
shall consist of the members of the Board or such committee as the case may be immediately
before such Control is obtained;
	 
	 	 	“Company” means Barclays PLC;
	 
	 	 	“Control” means the control of a company within the meaning given to that expression by
section 840 of the Taxes Act and a person shall be deemed to have control of a company if he
and others acting in concert with him have together obtained control of the company within
such meaning;
	 
	 	 	“Date of Grant” means the date on which an Option is granted in accordance with clause 2;
	 
	 	 	“Dealing Day” means a day on which transactions take place on the London Stock Exchange;
	 
	 	 	“Eligible Employee” means any person whose terms of employment require him to devote
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Group, but excluding any person who has less than two years service to run before his Normal
Retirement Age unless the Company in general meeting shall have resolved to waive such
requirement in any particular case;

“Exercise Price” means subject to clause 8, the price per Share payable on the exercise of
an Option as determined by the Board and as stated when granting an Option in accordance
with clause 2 being:

	 	(a)	 	in the case of an Option to subscribe Shares not less than the greater of:

	 	(i)	 	the nominal value of a Share; and
	 
	 	(ii)	 	if and for so long as the Shares are admitted to the Official
List of the UK Listing Authority, the average middle market quotations of a
Share as derived from the Daily Official List of the UK Listing Authority
(rounded up to the nearest whole penny) over any period of not more than five
successive Dealing Days in the period of 30 days before the Date of Grant
PROVIDED THAT any such period of successive Dealing Days falls within the Grant
Period; and
	 
	 	(iii)	 	if the Shares are not so admitted, the market value of a Share
determined in accordance with Part VIII of the Taxation of Chargeable Gains Act
1992;

	 	(b)	 	in any other case, the average purchase price paid by the Trustees to purchase
Shares on any regulated market for the grant of Options over any period not exceeding
ten successive Dealing Days PROVIDED THAT:

	 	(i)	 	not more than 30 days shall elapse after the first Dealing Day
taken for these purposes and the Date of Grant;
	 
	 	(ii)	 	any such period of ten successive Dealing Days falls within the
relevant Grant Period;
	 
	 	(iii)	 	for the purposes of calculating the average purchase price, if
the Trustees do not purchase Shares on any regulated market the average
purchase price the Trustees would have paid had they bought the Shares on such
regulated market during the relevant period as determined by the Trustees; and
	 
	 	(iv)	 	the Trustees notify the Board in writing of the average
purchase price paid for the Shares by the Trustees (or which the Trustees would
have paid pursuant to paragraph (b)(iii) above);

“Financial Year” means a financial year of the Company within the meaning given to that
expression by section 742 of the Companies Act 1985;

“Grant Period” means any period of three months from:

	 	(a)	 	the Adoption Date;
	 
	 	(b)	 	an Announcement Date PROVIDED THAT if the Company is restricted by statute,
order, regulation or otherwise (including a restriction resulting from the application
of the Model Code for transactions in securities by directors or any comparable code
adopted by the Company) from granting Options within such three month period, the
Company may grant Options within the period of three months after the lifting of such
restrictions; or
	 
	 	(c)	 	any date on which changes to the legislation affecting share option schemes is
announced or made;

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	 	(d)	 	any time when the Board resolves that exceptional circumstances exist which
justify the grant of Options;

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

London Stock Exchange means the London Stock Exchange plc;

“Normal Retirement Age” means the earliest age at which an employee can be required to
retire by any member of the Group or, if sooner, the age at which he has agreed to take
early retirement;

“Operative Period” means the period of ten years commencing on the Adoption Date;

“Option” means a right to buy Shares granted pursuant to the Plan;

“Option Period” means subject to clauses 5, 6.2, 6.3, 6.4 and 7, the period during which an
Option shall be exercisable in accordance with the provisions of the Plan as determined by
the Board at its Date of Grant PROVIDED THAT the Board may not specify a period beginning
earlier than three years from its Date of Grant nor ending later than ten years from its
Date of Grant;

“Participant” means an Eligible Employee who has been granted an Option or, where
applicable, the personal representative(s) of any such person;

“Plan” means the employees’ share scheme herein contained as from time to time amended in
accordance with the provisions hereof which shall be known as the “Barclays PLC Unapproved
Incentive Share Option Plan”;

“Shares” means ordinary shares in the capital of the Company;

“Subsidiaries” means those companies over which for the time being the Company has Control
and which are subsidiaries of the Company within the meaning of section 736 of the Companies
Act 1985;

“Target Award” means the value determined by the Board for the purposes of granting an
Option to an Eligible Employee who it has selected in its absolute discretion to participate
in the Plan, such value being based on market competitive practice for comparable positions
differentiated to reflect individual performance and potential and used by the Board to
determine the performance measures applicable to the exercise of the Option and the maximum
number of Shares over which the Option may be granted;

“Taxes Act” means the Income and Corporation Taxes Act 1988;

“Trustees” means the trustees from time to time of any employee benefit trust established by
a member of the Group;

“UK Listing Authority” means the UK Listing Authority within the meaning given to that
expression in the Listing Rules made by the Financial Services Authority pursuant to its
appointment as the relevant competent authority under the Official Listing of Securities
(Change of Competent Authority) Regulations 2000.

	1.2	 	Any reference herein to a statutory provision shall include a reference to that provision as
amended or re-enacted from time to time. Where the context permits the singular shall include
the plural and vice versa and the masculine gender shall include the feminine.
	 
	2.	 	Grant of Options

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	2.1	 	Subject to the limitations set out below, the Board may in its absolute discretion during any
Grant Period grant any Eligible Employee an Option in accordance with the terms of the Plan.
The Board shall as soon as reasonably practicable on or after its Date of Grant notify any
such Eligible Employee in writing of the grant of the Option. The notice shall specify:

	 	(a)	 	the number of Shares in respect of which the Option is granted;
	 
	 	(b)	 	the date on which it is granted;
	 
	 	(c)	 	the Exercise Price;
	 
	 	(d)	 	the performance target(s) imposed by the Board for the purposes of clause 5;
and
	 
	 	(e)	 	the Option Period.

	2.2	 	An Eligible Employee to whom an Option is granted may by notice in writing within 30 days
after the date of grant (or such shorter period of which he is notified) renounce his rights
thereunder in whole, and in such case the Option shall be deemed never to have been granted
hereunder, or in part, and in such case the Option shall be deemed to have been granted only
as to the balance.
	 
	2.3	 	The grant of an Option shall be made on the basis that participation in the Plan shall
constitute an agreement to be bound by the rules of the Plan and shall be evidenced by an
instrument executed as a deed (howsoever, including by facsimile signature) in such form as
the Board may from time to time prescribe and shall be personal to the Participant and may not
be transferred, assigned or charged to or, subject to the provisions of clause 6.2, exercised
by any other person. The instrument shall be issued as soon as practicable after the last date
on which an Eligible Employee may renounce his rights under an Option in accordance with
clause 2.2.
	 
	2.4	 	No Option shall be granted under the Plan after the expiry of the Operative Period.
	 
	3.	 	Limitations on Grant of Options
	 
	3.1	 	Subject to adjustment pursuant to clause 8, no Options shall be granted under the Plan:

	 	(a)	 	if as a result the number of Shares issuable on the exercise of such Options,
when aggregated with any other ordinary shares issued by way of subscription out of
profits and with any other ordinary shares issued or capable of being issued by way of
subscription on the exercise of options granted by the Company during the previous ten
years under the Plan and under Any Other Plan, would exceed ten per cent. of the amount
of the Company’s ordinary share capital then in issue; or
	 
	 	(b)	 	if as a result the number of Shares issuable on the exercise of such Options,
when aggregated with any other ordinary shares issued or capable of being issued by way
of subscription on the exercise of options granted by the Company during the previous
ten years under the Plan and Any Other Executive Plan would exceed five per cent. of
the amount of the Company’s ordinary share capital then in issue;

PROVIDED THAT for the purpose of applying the limits set out in clauses 3.1(a) and (b) the
number of Shares over which Options may be granted under the Plan shall be reduced by the
number of notional Shares determined by the Board in the manner set out in clause 3.2.

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	3.2	 	For the purposes of the proviso to clause 3.1:

	 	(a)	 	the Board shall compute the number of BGI Shares which have been acquired on
exercise of options granted under the BGI Plan in the relevant period or in respect of
which options under the BGI Plan are currently outstanding (less any BGI Shares issued
on the exercise of options granted under the BGI Plan but subsequently purchased by
Barclays Bank or any other member of the Group); and
	 
	 	(b)	 	the Board shall, subject to such adjustment or variation as the Board shall in
its absolute discretion consider appropriate, convert such BGI Shares into a number of
notional Shares by the application in relation to each such acquisition of or grant of
options over, BGI Shares of the formula:

	 	 	 	A x B = D where:

   C

	 	 	 	A is the number of BGI Shares acquired by or under option to each relevant employee;
	 
	 	 	 	B is the price per BGI Share at which such employee acquired or may acquire such
number of BGI Shares;
	 
	 	 	 	C is if and for so long as the Shares are admitted to the Official List of the UK
Listing Authority the greater of the market value of a Share:

	 	(a)	 	on the date of grant of such options; and
	 
	 	(b)	 	on the date of any determination by the Board for the purposes
of this clause 3.2,

	 	 	 	calculated by the Board by reference to the middle market quotations of a Share as
derived from the Daily Official List of the UK Listing Authority or if the Shares
are not so admitted on such other basis as the Board shall in its absolute
discretion determine;
	 
	 	 	 	D is the number of notional Shares represented by the BGI Shares acquired in the
relevant period or in respect of which options are currently outstanding under the
BGI Plan for the purposes of the proviso to clause 3.1.

	3.3	 	No Option shall be granted to an Eligible Employee under the Plan if as a result the Target
Award for that Option when aggregated with the Target Award for any other Option granted to
such Eligible Employee in the same Financial Year would exceed 200% of such Eligible
Employee’s remuneration determined for these purposes by the Board in its absolute discretion.
	 
	4.	 	Exercise of Options
	 
	4.1	 	An Option shall only be exercised by a Participant within its Option Period, by his giving
notice in writing to the Company at its registered office in such form as may be prescribed by
the Board from time to time. Such notice shall be signed by the Participant and shall specify
the number of Shares (which shall be either a multiple of 100 or equal to the balance of the
Shares remaining subject to the Option) in respect of which the Option is being exercised. The
Shares needed to satisfy the exercise of the Option may be provided by the Company or the
Trustees. The Participant shall:

	 	(a)	 	supply with such notice:

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	 	(i)	 	the instrument evidencing the grant of the relevant Option for
cancellation or amendment; and
	 
	 	(ii)	 	such other documentation as the Board may require;

	 	(b)	 	pay the full amount of the aggregate Exercise Price for the said Shares in such
manner as the Board may from time to time prescribe (which in the case of Options to be
satisfied by the Trustees shall be payable to the Company as agent for the relevant
Trustees); and
	 
	 	(c)	 	pay any such additional amount of which the Board my notify the Participant in
respect of any deduction on account of tax or similar liabilities as may be required by
law which may arise on exercise of the Option in such manner as the Board may from time
to time prescribe.

	 	 	An Option (or part thereof) shall be deemed to have been exercised on the date when such
notice together with payment of the aggregate Exercise Price due and any such additional
amount (or documentation evidencing arrangements to pay such additional amounts), the
instrument evidencing the grant of an Option and any other documents specified by the Board
are received by the Company. Where such exercise is conditional on the fulfilment of the
condition specified in clause 5.2 the date of exercise of the Option or the relevant portion
of the Option shall for these purposes be deemed to be the date on which the Board
determines in accordance with clause 5.3 that the condition has been fulfilled.
	 
	4.2	 	The Company or the Trustees as appropriate shall within 30 days after the date of exercise of
the Option either:

	 	(a)	 	allot and thereafter issue; or
	 
	 	(b)	 	transfer

	 	 	the appropriate number of Shares to the Participant (or to his nominee at the Participant’s
written direction) at their Exercise Price and shall deliver to the Participant (or his
nominee, as appropriate) a definitive share certificate in respect thereof (or such other
evidence of allotment and issue as may be prescribed by the Board where such allotment and
issue is by means of a relevant system, as defined in Regulation 2(1) of the Uncertificated
Securities Regulations 1995).
	 
	4.3	 	Any Shares issued pursuant to clause 4.2 shall rank pari passu in all respects with the
Shares in issue on the date of such allotment save that they shall not rank for or be entitled
to any dividend or other distribution or any issue of Shares by way of capitalisation of
profits or reserves or any issue of securities by way of rights which under the terms of a
resolution passed by the Company is to be or is proposed to be paid or made to the holders of
Shares on the register on a date prior to the date of such allotment.
	 
	4.4	 	If and for so long as the Shares are admitted to the Official List of the UK Listing
Authority the Company shall for all Shares allotted pursuant to the exercise of Options apply
to:

	 	(a)	 	the UK Listing Authority for a listing; and
	 
	 	(b)	 	the London Stock Exchange for admission to trading.

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	5.	 	Limitations on Exercise of Options
	 
	5.1	 	Without prejudice to the following provisions of this clause 5, and subject as provided in
clauses 6 and 7, an Option may be exercised by a Participant who has ceased to be an Eligible
Employee.
	 
	5.2	 	The exercise of an Option by a Participant and if relevant the extent to which it may be so
exercised shall be conditional on the Board being satisfied that such performance target(s) as
has been imposed by it on the grant of the Option in question shall have been fulfilled.
	 
	5.3	 	Within 30 days of the date of any conditional exercise of the Option the Board shall
determine whether the performance target referred to in clause 5.2 has been fulfilled and if
relevant the extent to which it has been fulfilled and shall inform the Participant in writing
accordingly. The determination of the Board shall be final and binding.
	 
	6.	 	Time for Exercise of Options
	 
	6.1	 	Subject to clauses 6.2, 6.3, 6.4 and 7, an Option may only be exercised during its Option
Period. An Option which is not so exercised shall lapse.
	 
	6.2	 	If a Participant dies his personal representative(s) may exercise his Option at any time
before the expiry of its Option Period and within but not later than 12 months from the date
of his death. Any such Option which is not so exercised shall lapse.
	 
	6.3	 	Subject to clause 5.2, if a Participant ceases to be employed by the Group by reason of:

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

he may thereafter exercise his Option at any time before the earlier of the expiry of its
Option Period and within the later to expire of the following periods: 12 months from the
date of such cessation or 12 months commencing on the third anniversary of the Date of Grant
PROVIDED THAT if a Participant so ceases to be employed by the Group before the third
anniversary of the Date of Grant the Board may in its absolute discretion determine that the
Option may become exercisable for 12 months from any date before such date. Any Option which
is not so exercised shall lapse.

	6.4	 	Subject to clause 5.2, if a Participant ceases to be employed by the Group otherwise than by
reason of the events specified in clauses 6.2 and 6.3 which shall include for these purposes
where a Participant is adjudicated bankrupt, his Option shall lapse unless the Board in its
absolute discretion determines otherwise in which case he may exercise his Option at any time
before the expiry of its Option Period and within the later to expire of the following
periods: 12 months from the date of such cessation or 12 months beginning on the third
anniversary of the Date of Grant PROVIDED THAT if a Participant so ceases
to be employed by the Group before the third anniversary of the Date of Grant the Board

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	 	 	may
in its absolute discretion determine that the Option may become exercisable for 12 months
from any date before such date. Any Option which is not so exercised shall lapse. An Option
shall lapse on the date on which a Participant transfers assigns or charges or attempts to
transfer, assign or charge his interest in the Option.
	 
	6.5	 	For the purposes of this clause 6, where a Participant’s employment is terminated without
notice or on terms in lieu of notice it shall be deemed to cease on the date on which the
termination takes effect and where the said employment is terminated with notice it shall be
deemed to cease upon the date on which that notice expires.
	 
	7.	 	Takeovers and Liquidations
	 
	7.1	 	Clause 7.2 shall apply:

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

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

	 	(b)	 	if any person obtains Control of the Company pursuant to a compromise or
arrangement sanctioned by the Court under section 425 of the Companies Act 1985 (a
“scheme of arrangement” for the purposes of this clause 7).

	7.2	 	Subject to clause 5.2, a Participant may exercise his Option at any time before the earlier
of the expiry of its Option Period and the expiry of the appropriate period, as defined in
clause 7.3. Any such Option which is not so exercised shall lapse.
	 
	7.3	 	The appropriate period referred to in clause 7.2 is:

	 	(a)	 	in a case falling within clause 7.1(a), a period commencing on the date when
the person making the offer has obtained Control of the Company and any condition
subject to which the offer is made is satisfied and ending on the earlier of:

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

	 	(b)	 	in a case falling within clause 7.1(b), whichever of the following periods is
the first to expire:

	 	(i)	 	a period of six months commencing with the time when the Court
sanctions the compromise or arrangement; or
	 
	 	(ii)	 	the period commencing with the time when the Court sanctions
the compromise or arrangement and ending on the date when the scheme of
arrangement becomes effective.

	7.4	 	If the Company gives notice of a General Meeting to consider a resolution for the voluntary
winding-up of the Company, a Participant may exercise his Option at any time before the expiry
of its Option Period and during the period until such resolution is duly
passed or defeated or withdrawn PROVIDED THAT any exercise pursuant to this clause

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7.4 shall
be conditional upon the said resolution being duly passed. If a Participant exercises his
Option pursuant to this clause 7.4 he shall be entitled to share in the assets of the
Company with existing holders of the Shares in the same manner as he would have been
entitled had the Shares been registered in his name before the resolution was passed.

	7.5	 	On the commencement of any liquidation of the Company (subject to clause 7.4 and otherwise
than in connection with a compromise or arrangement as referred to in clause 7.1(b)) the
Option shall lapse.
	 
	8.	 	Variations in the Share Capital of the Company
	 
	8.1	 	If at any time after its Date of Grant and before an Option ceases to be exercisable, there
is a variation or reorganisation of the share capital of the Company which involves the Shares
by reason of an issue of securities by way of rights or capitalisation of reserves or a
reduction, sub-division or consolidation of capital or otherwise, the Exercise Price and/or
the number of Shares in respect of which the Option may be exercised and/or the denomination
of the Shares comprised in an Option may be adjusted to such extent and in such manner as the
Board shall determine and the Auditors shall in their opinion consider and confirm in writing
to the Board to be fair and reasonable PROVIDED THAT:

	 	(a)	 	the aggregate Exercise Price payable on the exercise of an Option shall not be
increased thereby;
	 
	 	(b)	 	the Exercise Price shall not be reduced below the nominal value of a Share if
Shares are to be subscribed on exercise of an Option.

	8.2	 	The Participant shall be notified in writing of any such adjustments as soon as practicable
thereafter and the Company shall be entitled to call in the instrument evidencing the grant of
the Option affected by such adjustments for endorsement or replacement, as may appear
appropriate.
	 
	9.	 	Administration of the Plan
	 
	9.1	 	The Plan shall in all respects be administered by the Board. The Board may make such rules
for the conduct of the Plan, not being inconsistent with the provisions hereof, as it shall
think fit. The Board shall have authority, not inconsistent with the provisions hereof, to
prescribe the form or forms of instrument evidencing Options and any other instruments
required under the Plan and to change such forms from time to time. Any dispute regarding the
interpretation of the Plan or the terms of any Option shall be determined by the Board (after
seeking such advice as it shall consider necessary) and its decision shall be final and
binding.
	 
	9.2	 	The Company shall at all times maintain an amount of authorised and unissued Shares
sufficient to satisfy outstanding Options under the Plan or to procure that sufficient Shares
are available for transfer to satisfy all Options under which Shares may be acquired.
	 
	9.3	 	The Company may distribute to Participants copies of any notice or document normally sent by
the Company to the holders of Shares.
	 
	9.4	 	The provisions of the Company’s Articles of Association for the time being with regard to the
service of notices upon members of the Company shall apply mutatis mutandis to any notice to
be given by the Company under the Plan to Participants and all notices to be
given to the Company under the Plan shall be delivered or sent by post to the Company at its
registered office.

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	10.	 	Amendment of the Plan
	 
	10.1	 	Subject to:

	 	(a)	 	any adjustment made pursuant to clause 8; and
	 
	 	(b)	 	clause 10.2; and
	 
	 	(c)	 	clause 10.3

the Board shall at any time be entitled to amend by resolution all or any of the provision
of the Plan PROVIDED THAT the definitions of the “Eligible Employee” and “Exercise Price”,
clauses 3, 8.1 and this clause 10 and the rights attaching to Shares allotted or transferred
under the Plan referred to in clause 4.3 shall not be amended to the advantage of existing
or future Participants without the prior approval by ordinary resolution of the members of
the Company in general meeting.

	10.2	 	Clause 10.1 shall not apply to any amendment which:

	 	(a)	 	is necessary to take account of a change in legislation or to obtain or
maintain favourable taxation, exchange control or regulatory treatment of the Company,
any Subsidiary or any Participant; or
	 
	 	(b)	 	is a minor amendment which is necessary or desirable to benefit or facilitate
the administration of the Plan.

	10.3	 	No amendment shall be made pursuant to clause 10.1 which would prejudice the subsisting
rights of existing Participants in any manner unless it is made:

	 	(a)	 	with the prior written consent of existing Participants entitled to exercise
options in respect of at least three-quarters of the total number of Shares over which
Options shall at that time be subsisting; or
	 
	 	(b)	 	by a resolution at a meeting of such Participants passed by not less than
three- quarters of the Participants who attend and vote either in person or by proxy
and for the purposes of this clause 10.3 the Participants shall be treated as the
holders of a separate class of share capital and the provisions of the Articles of
Association of the Company relating to class meetings shall apply mutatis mutandis.

	10.4	 	Notwithstanding any other provisions of the Plan the Board may, in respect of Options granted
to Eligible Employees who are or may become subject to taxation outside the United Kingdom on
their remuneration, amend the provisions of the Plan and the terms of Options as it considers
necessary or desirable to take account of or to mitigate or to comply with relevant overseas
taxation, securities or exchange control laws provided that the terms of Options granted to
such Eligible Employees are not overall more favourable than the terms of Options granted to
other Eligible Employees.
	 
	10.5	 	If any amendment is made pursuant to this clause 10, the Board shall notify all Participants
in writing as soon as practicable thereafter.
	 
	10.6	 	The Board or the Company in general meeting may by resolution to terminate the Plan at any
time but Options previously granted shall continue to be valid and exercisable in accordance
with the provisions of the Plan.
	 
	11.	 	Additional Provisions

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	11.1	 	Every Option shall be subject to the condition that no Shares shall be issued or transferred
to a Participant following the exercise of an Option if such issue or transfer would be
contrary to any enactment or regulation for the time being in force of the United Kingdom or
of any other country having jurisdiction in relation thereto. The Company shall not be bound
to take any action to obtain the consent of any governmental authority to such issue or
transfer or to take any action to ensure that any such issue or transfer shall be in
accordance with any enactment or regulation if such action could in the opinion of the Board
be unduly onerous.
	 
	11.2	 	The rights and obligations of a Participant under his terms of employment with any member of
the Group shall not be affected by his participation in the Plan and the Plan shall not afford
to a Participant any right to continued employment or any right to compensation in
consequence of the termination of his employment (whether lawful or unlawful) for any reason
whatsoever.
	 
	11.3	 	The Company may distribute to Participants copies of any notice or document sent by the
Company to the holders of Shares.
	 
	11.4	 	In any matter in which they are required to act hereunder the Auditors shall be deemed to be
acting as experts and not as arbitrators.
	 
	11.5	 	This Plan shall be governed by and construed in accordance with English law.

LovellsEX-4.4

Exhibit 4.4

SCHEDULE

Barclays PLC

Rules of the Executive Share Award Scheme

 

 

INDEX

Rules of the Executive Share Award Scheme

	 	 	 	 	 
	1.    Definitions and Interpretation

	 	 	1	
	 

	2.    Grant of Awards and Options

	 	 	3	 
	 

	3.    Awards and Options

	 	 	4	 
	 

	4.    Dividends

	 	 	4	 
	 

	5.    Grant of Mandatory ESAS Option

	 	 	4	 
	 

	6.    Manner of Exercise of an Option and Rights of Participants

	 	 	5	 
	 

	7.    Release of Shares on the Release Date

	 	 	5	 
	 

	8.    Manner of Release of Shares and Rights of Participants on Release

	 	 	6	 
	 

	9.    Further Conditions of Release and Waiver of Conditions

	 	 	7	 
	 

	10.  Cessation of Employment of Participant

	 	 	7	 
	 

	11.  Takeover, Reconstruction and Winding-up of Barclays

	 	 	8	 
	 

	12. Variation of Capital

	 	 	8	 
	 

	13. Administration of the Scheme

	 	 	8	 
	 

	14. Amendment of the Scheme

	 	 	8	 
	 

	15. Termination of the Scheme

	 	 	9	 
	 

	16. General Provisions

	 	 	9	 
	 

	Appendix 1

	 	 	11	 
	 

	     Mandatory ESAS Option Deed

	 	 	11	 
	 

	Appendix 2

	 	 	19	 
	 

	     Voluntary ESAS Option Deed

	 	 	19	 

 

 

Barclays PLC

Rules of the Executive Share Award Scheme

	 	 	The following rules shall apply in relation to payments or applications of the Trust Fund in
accordance with clause 2 of the Trust Deed.

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

 

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

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	 	 	otherwise have become entitled for any financial period of Barclays by deed on the terms and
conditions and in the form set out in Appendix 3 hereto (or in such other form as may be
prescribed from time to time by the Trustee).
	 
	1.2	 	Any reference herein to a statutory provision shall include a reference to that provision as
amended or re-enacted from time to time. Where the context permits the singular shall include
the plural and vice versa and the masculine gender shall include the feminine and vice versa.
	 
	1.3	 	The Scheme is subject to the terms of the Trust Deed. If there is any conflict between such
terms and the terms of the Scheme, the terms of the Trust Deed shall prevail.
	 
	2.	 	 Grant of Awards and Options
	 
	2.1	 	Subject to paragraphs 2.5 and 2.6, the Trustee may, in its absolute discretion, having first
consulted the Board, grant an Award and/or an Option in accordance with the rules of the
Scheme to any Eligible Employee.
	 
	2.2	 	An Award or an Option shall, unless the Trustee determines otherwise, be granted:

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

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

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

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

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

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

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

	 	 	Until their release on the Release Date, a Participant shall have no interest in the Shares
subject to his Award. A Participant shall not be entitled to any dividends or other
distributions made in respect of the Shares awarded to him or subject to any Option granted
to him. A Participant shall have no right until their transfer to a Participant on the
exercise of an Option or their release on the Release Date to vote in respect of the Shares
subject to his Option or his Award. There shall be no consideration payable for the grant
of an Award or an Option.

	3.	 	 Awards and Options

	3.1	 	Any Award or Option granted to a Participant is personal to him and shall not be capable of
being transferred or otherwise disposed of by a Participant. Any such Award or Option shall
lapse forthwith if it is so transferred or otherwise disposed of or if a Participant is
adjudicated bankrupt.
	 
	3.2	 	A Participant shall be entitled at any time to renounce, surrender or cancel or agree to the
cancellation of an Award or an Option.

	4.	 	 Dividends

	4.1	 	The Trustee may, in its absolute discretion, apply any dividends (net of any tax payable in
respect of such dividends by the Trustee) which it receives in respect of any Shares which are
available for release or exercise under any subsisting Award or Option to purchase further
Shares.
	 
	4.2	 	The Trustee may, in its absolute discretion, release such further Shares acquired pursuant to
paragraph 4.1 (or Shares received by the Trustee as a result of the Trustee electing to
receive any Scrip Dividend offered by Barclays) to a Participant at the same time as the
exercise of a Mandatory ESAS Option (having consulted the Board) or at the same time as the
release of any Shares available for release on the Release Date.
	 
	4.3	 	The Trustee may, in its absolute discretion, include such further Shares acquired pursuant to
paragraph 4.1 (or Shares received by the Trustee as a result of the Trustee electing to
receive any Scrip Dividend offered by Barclays) in the number of Shares subject to a Mandatory
ESAS Option.
	 
	5.	 	 Grant of Mandatory ESAS Option
	 
	5.1	 	The Trustee shall determine, in its absolute discretion having first consulted the Board, on
each Grant Date specified in an Award Letter whether or not:

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

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

	5.2	 	If the Trustee determines that paragraphs 5.1(a) and (b) have been fulfilled, the Trustee may
in its absolute discretion grant a Mandatory ESAS Option to the Participant over the

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	 	 	number of Shares specified in the Award Letter as available for the grant of a Mandatory
ESAS Option to the Participant on the relevant Grant Date including some or all of the Bonus
Shares and any Shares acquired by the Trustee pursuant to paragraph 4.
	 	 	
	5.3	 	If the Trustee determines that paragraphs 5.1(a) and (b) have not been fully satisfied or
have not been satisfied at all, the Trustee may in its absolute discretion grant a Mandatory
ESAS Option to the Participant over:

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

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

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

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

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

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

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

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

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

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

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

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	 	(c)	 	the Participant shall be entitled to require the Trustee to transfer legal
title to such Shares to the Participant.

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

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

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

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

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

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	16.6	 	Data Protection provisions

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

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

	 		 	otherwise the Company and the Trustee will keep information about a Participant
confidential.

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

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

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Appendix 1

			
	 	 	 
	Dated
	 	200[ ]
	 

[Name of Optionholder]

 

Mandatory ESAS Option Deed

 

Lovells

Atlantic House

50 Holborn Viaduct

London EC1A 2FG

Ref:      C2/LLW

 

 

 

Mandatory ESAS Option Deed

This Deed is made the [          ] day of [     ]

By:

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

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

This Deed Witnesses:

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

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

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

	3.3	 	The Trustee shall within 30 days after the date of exercise of the Option transfer the
appropriate number of Option Shares to the Optionholder (or to his nominee at the

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

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

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

	 	(a)	 	a general offer to acquire the whole of the issued share capital of Barclays
(other than that which is already owned by such person) made on a condition such that
if it is satisfied the person making the offer will have Control of Barclays; or

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	 	(b)	 	a general offer to acquire all the Shares (or such Shares as are not already
owned by such person); or
	 
	 	(c)	 	pursuant to a compromise or arrangement between Barclays and its creditors or
members which is sanctioned by the Court under section 425 of the Companies Act 1985

	 	 	the Option shall lapse forthwith unless the Trustee determines otherwise.

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

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

	 	 	Where a notice or other communication is given by first-class post, it shall be deemed to
have been received 48 hours after it was put into the post properly addressed and stamped.

	8.	 	 Additional Provisions
	 
	8.1	 	The Option is personal to the Optionholder and may not be transferred to or subject to the
provisions of clause 4.3, exercised by any other person.
	 
	8.2	 	The Option shall be subject to the condition that no Option Shares shall be transferred to
the Optionholder by the Trustee following the exercise of the Option if such transfer would be
contrary to any enactment or regulation for the time being in force of the United Kingdom or
of any other country having jurisdiction in relation thereto. The Trustee shall not be bound
to take any action to obtain the consent of any governmental authority to such transfer or to
take any action to ensure that any such transfer shall be in accordance

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

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[Example]

Appendix

Notice of Exercise of Mandatory ESAS Option

	To:	 	 Bailhache Labesse Trustees Limited

PO Box 207

13-14 Esplanade

St Helier

Jersey

Channel Islands, JE1 1BD,

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

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

Please note:

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

Dated

	 	 	 	 	 	 	 	 	 
	Signed

	 	 	 	 	 	Name of Nominee	 	 
	 

	 	 	 	 	 	 	 	 
	(Optionholder)

	 	 	 	 	 	(if applicable) (Block capitals)	 	 
	 
	 	 	 	 	 	 	 	 
	Full Name

	 	 	 	 	 	Address of Nominee	 	 
	 

	 	 	 	 	 	 	 	 
	(Block Capitals)

	 	 	 	 	 	(Block Capitals)	 	 
	 
	 	 	 	 	 	 	 	 
	Full Address
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 
	(Block Capitals)
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Contact telephone number

	 	 	 	 	 	Reference	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

 

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

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

	 	 	 
	EXECUTED as a deed by 

Bailhache Labesse Trustees Limited 

acting by:

	 	)

)

)

Authorised Signatory

Authorised Signatory

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Appendix 2

			
	 	 	 
	Dated
	 	200[ ]
	 

[Name of Optionholder]

 

Voluntary ESAS Option Deed

 

Lovells

Atlantic House

50 Holborn Viaduct

London EC1A 2FG

Ref: C2/LLW

Lovells

 

 

Voluntary ESAS Option Deed

This Deed is made the [                     ] day of [           ]

By :

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

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

This Deed Witnesses:

	1.	 	Definitions and Interpretation
	 
	1.1	 	In this Deed:
	 
	 	 	“Auditors” means the auditors for the time being of Barclays or such other independent
suitably qualified person as the Trustee may from time to time nominate;
	 
	 	 	“Barclays” means Barclays PLC, registered in England No.48839;
	 
	 	 	“Board” means the board of directors for the time being of Barclays or a duly appointed
committee thereof PROVIDED THAT if any person obtains Control of Barclays the Board or
relevant committee as appropriate shall mean the members of the Board or such committee
as the case may be immediately before such Control is obtained;
	 
	 	 	“Control” means the control of a company within the meaning of section 840 of the Taxes Act
and a person shall be deemed to have control of a company if he and others acting in
concert with him have together obtained control of a company within such meaning;
	 
	 	 	“Group” means Barclays, and all of its Subsidiaries and “member of the Group” shall be
construed accordingly;
	 
	 	 	“Option” means the right granted hereby by the Trustee to the Optionholder to acquire the
Option Shares;
	 
	 	 	“Option Period” means the period of ten years from the Start Date;
	 
	 	 	“Option Shares” means subject to clause 6, [          ] Shares;
	 
	 	 	“Scheme” means the Executive Share Award Scheme established by the Trustee pursuant to the
Trust Deed and constituted by its rules set out in the Second Schedule to the Trust
Deed as amended from time to time in accordance with paragraph 14 thereof;
	 
	 	 	“Shares” means ordinary shares in the capital of Barclays (or such other class of shares as
may represent the same as a result of any reorganisation, reconstruction or other
variation of share capital of Barclays to which the provisions of this Deed apply from
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	 	 	to time) PROVIDED THAT if an Option is exercised at any time when the Trustee does not hold
such Shares in Barclays following an event as described in clause 5, references to shares in
clauses 3 and 5 shall include any consideration received by the Trustee for the Shares in
respect of which an Option is being exercised;
	 
	 	 	“Stamp Duty Regulations” means the Stamp Duty (Exempt Instruments) Regulations 1987;
	 
	 	 	“Start Date” means [                ];
	 
	 	 	“Subsidiaries” means those companies which are subsidiaries of Barclays within the meaning
of section 736 of the Companies Act 1985;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes 1988; and
	 
	 	 	“Trust Deed” means the deed dated 27 September 1996 establishing the Barclays Group (ESAS)
Employees’ Benefit Trust.
	 
	1.2	 	Any reference herein to a statutory provision shall include a reference to that provision as
amended or re-enacted from time to time. Where the context permits the singular shall include
the plural and vice versa and the masculine gender shall include the feminine and vice versa.
	 
	1.3	 	If there is any conflict between the terms and conditions of this Deed and the terms and
conditions of the Trust Deed and the Scheme, the terms and conditions of the Trust Deed and
the Scheme shall prevail.
	 
	2.	 	Grant of Option
	 
	 	 	The Trustee hereby grants the Option to the Optionholder subject to and in accordance with
the terms and conditions of this Deed.
	 
	3.	 	Exercise of Option
	 
	3.1	 	Subject to clauses 4 and 5, the Option may be exercised on one occasion only in whole or in
part by the Optionholder at any time within the Option Period by his giving to the Trustee at
its registered office at least 10 working days’ written notice. Such notice shall be
substantially in the form set out in the appendix hereto or in such other form and manner as
the Trustee may from time to time prescribe. Such notice shall specify the number of Option
Shares in respect of which the Option is being exercised. The date of exercise of the Option
(or the relevant portion of the Option as the case may be) shall be the date on which the
period of notice expires (or such earlier date specified by the Trustee following receipt of a
valid written notice of exercise from the Optionholder). On exercise of the Option, £1 will
be payable by the Optionholder or his personal representative(s)) in total for the Option
Shares acquired.
	 
	3.2	 	The Optionholder shall:

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

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

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

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

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

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	 	 	which the termination takes effect and where such employment is terminated with notice it
shall be deemed to cease upon the date on which that notice is given.
	 
	5.	 	Takeover, Reconstruction and Winding-up of Barclays
	 
	5.1	 	Clause 5.2 shall apply:

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

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

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

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

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

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

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

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

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

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

	 	 	Where a notice or other communication is given by first-class post, it shall be deemed to
have been received 48 hours after it was put into the post properly addressed and stamped.

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

Lovells

 

 

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

Lovells

 

 

[Example]

Appendix

Notice of Exercise of Voluntary ESAS Option

			
	To:	 	Bailhache Labesse Trustees Limited

PO Box 207

13-14 Esplanade

St Helier

Jersey

Channel Islands, JE1 1BD,

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

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

Please note:

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

	 	 	 	 	 	 	 
	Dated
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signed

	 	 	 	 	 	Name of Nominee
	 

	 	 	 	 	 	 
	(Optionholder)

	 	 	 	 	 	(if applicable) (Block capitals)
	 
	 	 	 	 	 	 
	Full Name

	 	 	 	 	 	Address of Nominee
	 

	 	 	 	 	 	 
	(Block Capitals)

	 	 	 	 	 	(Block Capitals)
	 
	 	 	 	 	 	 
	Full Address
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	(Block Capitals)
	 	 	 	 	 	 

 

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

Lovells

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Contact telephone number

	 	 	 	 	 	Reference	 	 
	 

	 	 
	 	 	 	 	 	 

Lovells

 

 

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

	 	 	 	 	 	 	 
	EXECUTED as a deed by

	 	 	)	 	 	 
	Bailhache Labesse Trustees Limited

	 	 	)	 	 	 
	acting by:

	 	 	)	 	 	 

Authorised Signatory

Authorised Signatory

Lovells

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