Document:

Exhibit 4.22

 

DEED OF INDEMNITY

 

THIS DEED OF INDEMNITY is made on 1 September 2012

 

BY AND AMONG

 

(1)                                 EDWARDS GROUP LIMITED, an exempted company incorporated in the Cayman Islands with registered number 266201 and whose registered office is c/o Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands (the “Company”); and

 

(2)                                 EDWARDS (CAYMAN ISLANDS II) LIMITED, an exempted company incorporated in the Cayman Islands whose registered office is c/o Equity Trust Company (Cayman) Ltd, 1st Floor Windward 1, Regatta Office Park, West Bay Road, Grand Cayman, KY1-1003, Cayman Islands, and an indirect wholly-owned subsidiary of the Company (“Cayman II”);

 

(3)                                 EDWARDS (CAYMAN ISLANDS I) LIMITED, an exempted company incorporated in the Cayman Islands whose registered office is c/o Equity Trust Company (Cayman) Ltd, 1st Floor Windward 1, Regatta Office Park, West Bay Road, Grand Cayman, KY1-1003, Cayman Islands, and an indirect wholly-owned subsidiary of the Company (“Cayman I” and together with Cayman II, the “Subsidiaries”); and

 

(4)                                 DOMINIQUE FOURNIER of Noble House #6, Paradise Island, PO Box SS, 6620 Nassau, The Bahamas (the “Director”).

 

WHEREAS, highly competent persons have become more reluctant to service corporations as directors or officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

 

WHEREAS, the board of directors of the Company has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis liability insurance, on the terms and conditions set forth below, to protect persons serving the Company and its affiliates (including, without limitation, the Subsidiaries) from certain liabilities;

 

WHEREAS, the Subsidiaries will receive funds generated by the initial public offering undertaken by the Company, which funds will be contributed to the Subsidiaries and used by the Subsidiaries for their corporate purposes, including reducing their debt obligations; and

 

WHEREAS, the board of directors and officers of the Company provide services, guidance and other benefits to the Subsidiaries.

 

NOW THIS DEED WITNESSETH as follows:

 

1              Subject to the provisions of this Deed, the Company and the Subsidiaries shall, to the fullest extent permitted by law and without prejudice to any other indemnity to which the Director may otherwise be entitled, indemnify and hold the Director harmless in respect of all claims, actions and proceedings, whether civil, criminal or regulatory (“Claims”), and any losses, damages, penalties, liabilities, compensation or other awards arising in connection with any such Claims (“Losses”),

 

 

whether instigated, imposed or incurred under the laws of the Cayman Islands or the law of any other jurisdiction and arising out of, or in connection with, the actual or purported exercise of, or failure to exercise, any of the Director’s powers, duties or responsibilities under the Companies Law as a director or officer of the Company or any of its subsidiary undertakings (as defined in section 1162 of  the Companies Act 2006 of the United Kingdom (the “Companies Act”)) for the time being (together referred to in this Deed as “Group Companies”). In this Deed, the Companies Law means the Companies Law (2011 Revision) of the Cayman Islands, including any modification or re-enactment of it for the time being in force.

 

2              The indemnity in clause 1 of this Deed shall be deemed not to provide for, or entitle the Director to, any indemnification that would cause this Deed, or any part of it, to be treated as void under the Companies Law and, in particular, to the extent the liability attaches to the Director in connection with any negligence, default, breach of duty or breach of trust in relation to the company of which he is a director, and shall not provide directly or indirectly (to any extent) any indemnity against:

 

(a)                                 any liability incurred by the Director to the Company or any Group Company; or

 

(b)                                 any liability incurred by the Director to pay a fine imposed in criminal proceedings or a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising); or

 

(c)                                  any liability incurred by the Director:

 

(i)                                    in defending any criminal proceedings in which he is convicted; or

 

(ii)                                in defending any civil proceedings brought by the Company, or an Group Company, in which judgment is given against him; or

 

(d)                                 any fraud, dishonesty or wilful default.

 

3              Without prejudice to the generality of and in addition to the indemnity set out in clause 1 of this Deed, the Company and the Subsidiaries shall, to the fullest extent permitted by law, indemnify and hold the Director harmless on an ‘as incurred’ basis against all legal and other costs, charges and expenses reasonably incurred:

 

(a)                                 in defending Claims including, without limitation, Claims brought by, or at the request of, the Company or any Group Company;

 

(b)                                 in defending himself in any investigation into the affairs of the Company or any of its subsidiaries by any judicial, governmental, regulatory or other body or against any action proposed to be taken by any such authority,

 

provided that the Director agrees that the indemnity provided for in this clause 3 shall not extend to any such legal and other costs, charges and expenses incurred by the Director:

 

(i)                                    in defending criminal proceedings in which he is convicted; or

 

(ii)                                in defending civil proceedings brought by the Company, or a Group Company, in which judgment is given against him; or

 

(iii)                            in connection with an application for relief which is refused,

 

2

 

and any monies paid by the Company or the Subsidiaries in respect of the indemnity in this clause 3 shall fall to be repaid not later than:

 

(iv)                             in the event of the Director being convicted in the proceedings, the date when the conviction become final; or

 

(v)                                 in the event of judgment being given against the Director in the proceedings, the date when the judgment becomes final; or

 

(vi)                             in the event of the Court refusing to grant the Director relief on the application, the date when the refusal of relief becomes final.

 

Reference in this deed to a conviction, judgment or refusal of relief becoming ‘final’ means that the conviction, judgment or refusal (i) has not been appealed against and the end of the period for bringing an appeal has passed, or (ii) if it has been appealed against, the appeal (or any further appeal) has been disposed of.

 

4              The Company and the Subsidiaries shall use all reasonable endeavours to provide and maintain appropriate directors’ and officers’ liability insurance (including ensuring that premiums are properly paid) for the benefit of the Director for so long as any Claims may lawfully be brought against the Director.

 

5              The Company and the Subsidiaries shall only be liable to indemnify the Director in accordance with this Deed if:

 

(a)                                 the Director gives written notice to the Company upon receipt of any demand relating to any Claims (or circumstances which may reasonably by expected to give rise to a demand relating to Claims) giving full details and providing copies of all relevant correspondence;

 

(b)                                 the Director ensures that the Company is kept fully informed of any actual or proposed developments (including any meetings) relating to any Claims or Losses or any other costs, charges or expenses incurred as the Company may reasonably request and is provided with copies of all material correspondence and documentation relating to such third party claim or action, and such other information, assistance and access to records and personnel as the Company reasonably requires;

 

(c)                                  the Director takes such steps as the Company may reasonably require to recover Losses under a relevant insurance policy or from such other third party as may be appropriate;

 

(d)                                 the Director does not appoint any personal advisor or legal representative and does not incur or agree to incur any cost or admit any liability in respect of a Claim without first having discussed the matter with the Company;

 

(e)                                  the Director gives the Company, upon request, sole conduct of any negotiations, arbitration or proceedings in connection with a matter to which this Deed relates (other than Claims brought by, on behalf of, or at the request of, the Company or any Group Company);

 

(f)                                   where any claim or demand is made in respect of Claims or Losses or for contribution as a co-obligor in respect of any Claim or Losses, the Director takes such action as the Company (or the Company’s insurers where applicable) may request to avoid, dispute, resist, appeal, compromise or defend the claim or demand, including the making of any witness statement or deposition, the giving of evidence, and the provision and procuring of all consents, documents and information within his power;

 

3

 

(g)                                 the Director does not make any admissions, conduct any negotiations or agree to any compromise, settlement or waiver of any rights or liabilities or make any payment on account into court or otherwise in connection with any matter to which this Deed relates, save in accordance with written instructions from the Company; and

 

(h)                                 the Director does not make any statements (whether oral or in writing and whether directly or indirectly) to the press or any other mediate concerning any matter which is or could be the subject to a claim under this Deed without written consent from the Company.

 

6              If a company ceases to be a Group Company after the date of this Deed, the Company shall only be liable to indemnify the Director in respect of liabilities in relation to that company which arose before the date on which that company ceased to be a Group Company.

 

7              The Director of any company which becomes a Group Company after the date of this Deed shall be indemnified only in respect of liabilities arising after the date on which that company became a Group Company.

 

8              The Company and the Subsidiaries hereby acknowledge that the Director has certain rights to indemnification, advancement of expenses and/or insurance provided by CCMP and certain affiliates that, directly or indirectly, (i) are controlled by, (ii) control or (iii) are under common control with, CCMP (collectively, the “Fund Indemnitors”).  The Company and the Subsidiaries hereby agree (i) that they are, jointly and severally, the indemnitors of first resort (i.e., their joint and several obligations to the Director are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by the Director are secondary), (ii) that they shall be required, jointly and severally, to advance the full amount of expenses incurred by the Director and shall be liable, jointly and severally, for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Deed and the memorandum and articles of association of the Company from time to time (or any other agreement between the Company (or either of the Subsidiaries) and the Director), without regard to any rights the Director may have against the Fund Indemnitors, and, (iii)  that the Company and the Subsidiaries irrevocably waive, relinquishe and release the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof.  The Company and the Subsidiaries further agree that no advancement or payment by the Fund Indemnitors on behalf of the Director with respect to any claim for which the Director has sought indemnification from the Company or the Subsidiaries shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of the Director against the Company and the Subsidiaries, jointly and severally.  Each of the Company, the Subsidiaries and the Director agree that the Fund Indemnitors are express third party beneficiaries of the terms of this Clause 8.

 

9              This Deed shall remain in force until such time as any relevant limitation periods for being Claims against the Director have expired, or for so long as the Director remains liable for any Losses.

 

10           If this Deed is finally judicially determined in a relevant jurisdiction to provide for, or entitle the Director to, indemnification against any Claims or Losses that would cause this Deed, or any part of it, to be treated as void under the laws of that jurisdiction, this Deed shall, insofar as it relates to such jurisdiction, be deemed not to provide for, or entitle the Director to, any such indemnification, and the Company shall instead indemnify the Director against any Claims or Losses to the full extent permitted by law in that jurisdiction.

 

11           With the exception to the rights of Fund Indemnitors pursuant to clause 8, a person who is not a party to this Deed shall have no right to enforce any of its terms.

 

4

 

12           This Deed and any non-contractual obligations arising out of or in connection with it shall be governed by, and interpreted in accordance with, the laws of the Cayman Islands and each of the Company and the Director hereby submit for all purposes in connection with this Deed to the exclusive jurisdiction of the Courts of the Cayman Islands.

 

IN WITNESS whereof this Deed has been executed the day and year first above written

 

 

	
EXECUTED and DELIVERED as   a
    	
)
    	
 
    
	
DEED by EDWARDS GROUP   LIMITED
    	
)
    	
Director
    
	
acting by a director
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED and DELIVERED as   a
    	
)
    	
 
    
	
DEED by EDWARDS (CAYMAN
    	
)
    	
 
    
	
ISLANDS II) LIMITED
    	
)
    	
Director
    
	
acting by a director
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
EXECUTED and DELIVERED as   a
    	
)
    	
 
    
	
DEED by EDWARDS (CAYMAN
    	
)
    	
 
    
	
ISLANDS I) LIMITED
    	
)
    	
Director
    
	
acting by a director
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED as a DEED and   DELIVERED by
    	
)
    	
 
    
	
DOMINIQUE FOURNIER in the presence of:
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Witness:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    

 

5Exhibit 4.23

 

 

Edwards Group plc’s Executive Annual Bonus Scheme 2012

 

CEO & CFO

 

Scheme Objective

 

The Company’s Executive Annual Bonus Scheme FY2012 is designed to reward a high performance culture by providing a clear link between the Company’s performance and pay and by aligning your bonus payment to the Company’s overall business achievements.

 

Bonus Structure:

 

·                  80% based on Company Financial performance, 20% based on functional performance

·                  100% of bonus paid annually

·                  Introduction of an EBITDA Margin threshold to trigger the functional performance and annual payment element

 

This year, 80% of your bonus opportunity will be based on the Company’s financial performance. The remaining 20% will be based on functional performance assessed by reference to the functional performance targets you have agreed with Remco and which are aligned to the Company corporate scorecard.

 

Your annual bonus opportunity is as follows:

 

	
Threshold Bonus Opportunity (% of base salary)
    	
 
    	
35
    	
%
    
	
On Target Bonus Opportunity (% of base salary)
    	
 
    	
70
    	
%
    
	
Maximum Bonus Opportunity (% of base salary)
    	
 
    	
91
    	
%
    

 

The bonus scheme will run from 1 January 2012 to 31 December 2012.

 

Financial Element

 

The financial element will account for 80% of the bonus opportunity and will be based on the following three financial measures:

 

·                  The Company’s EBITDA

·                  The Company’s EBITDA Margin

·                  The Company’s Operating Cash Flow

 

Each measure is discreet and equally weighted, based upon the Company’s financial priorities, and set out in the table below:

 

1

 

	
 
    	
 
    	
Weighting
   (% of bonus
    	
 
    	
FY12 Annual Targets
    	
 
    
	
Measure
    	
 
    	
opportunity)
    	
 
    	
Threshold
    	
 
    	
Target
    	
 
    	
Maximum
    	
 
    
	
EBITDA
    	
 
    	
26.67%
    	
 
    	
 
    	
 
    	
£142.6m
    	
 
    	
£164.3m
    	
 
    
	
EBITDA Margin
    	
 
    	
26.67%
    	
 
    	
20%
    	
 
    	
22.0%
    	
 
    	
23.5%
    	
 
    
	
OCF
    	
 
    	
26.67%
    	
 
    	
 
    	
 
    	
95.6m
    	
 
    	
£115.0m
    	
 
    

 

At the end of the year, a bonus payment will be made in respect of each financial measure if the target for that measure has been met. Payments will normally be made in the second month after the close of the year (due to confidentiality and financial reporting requirements)

 

·                  At the end of Q4, if the full year performance targets are met, then you will receive 80% of your annual bonus opportunity. This payment would normally be made in March 2013.

·                  There is also the potential to receive higher bonus payments (up to a maximum of 30% of your target bonus) by over-achieving against the targets. The maximum level of stretch bonus payment would be triggered by achieving the Maximum target detailed in the table above.  Incremental bonus would be paid on a ‘straight line’ basis for performance between the target and the maximum target.

·                  If none of the financial targets have been met through the year but the EBITDA Margin threshold target has been met this would then trigger a cumulative payment of 50% of the annual payment including the functional performance element.

 

Functional Performance Element

 

At the end of the year, if the EBITDA Margin target is met, this will trigger a 100% payment pot for the functional performance element.

 

It is your responsibility to set and agree your functional performance targets with the Remco which are aligned to the Company corporate scorecard. At the end of the year, you will be given a Functional Performance Score (based on performance against your agreed functional performance targets) which will be used to determine any payment within the final 20% of the bonus opportunity.

 

The Functional Performance Score will be translated into a factor to be used in your bonus calculation as per the table to the right.

 

Achievement of the threshold target for EBITDA margin will trigger a 50% payment pot for the functional performance element.  Performance between the threshold level and the target level EBITDA margin will be calculated on a ‘straight line’ basis to calculate the payment pot.  The fifth payment is capped at a 100% payment pot maximum and an assessment of the relevant functional performance score may adjust this upwards or downwards.

 

	
Functional
   Performance
   Score
    	
 
    	
Functional
   Performance
   Factor
    	
 
    
	
<20
    	
 
    	
0.00
    	
 
    
	
20
    	
 
    	
0.25
    	
 
    
	
50
    	
 
    	
0.53
    	
 
    
	
75
    	
 
    	
0.77
    	
 
    
	
100
    	
 
    	
1.00
    	
 
    
	
125
    	
 
    	
1.08
    	
 
    
	
150
    	
 
    	
1.15
    	
 
    
	
175
    	
 
    	
1.23
    	
 
    
	
200
    	
 
    	
1.30
    	
 
    

 

2

 

The individual fifth payment will be calculated by multiplying the Functional Performance Factor, the 20% weighting and the On Target Bonus Opportunity percentage, as per the example below (which assumes a Functional Performance Score of 125):

 

	
 

Functional 
   Performance 
   Factor
  =  
    1.08
    	
x
    	
 

Weighting
    
    =
    20% of the
   Bonus Target
    	
x
    	
On Target
   Bonus
   Opportunity
   percentage
     =  
    70% of Base
   Salary
    	
=
    	
 

Payment
    (as a % of
   Base Salary)

15.12%
    

 

Any payment related to the functional performance element will normally be made in March 2013.

 

If the threshold EBITDA Margin target is not met the Board may at its discretion authorise payment of the functional performance element.

 

How does the scheme work?

 

Payments related to the financial element will only be triggered in respect of each individual financial measure if the target for each such individual financial measure is achieved at the end of the year. No payments will be made for measures below target. Subject to the achievement of these targets, you will receive payment on or around March 2013.

 

Payment related to the functional performance element can only be triggered if at the end of the year, the EBITDA Margin performance metric exceeds the Threshold level.

 

The table below sets out an illustration of your on target bonus opportunity - as a percentage of base salary - and demonstrates how the scheme will operate.

 

	
Metric
    	
 
    	
Weighting
    	
 
    	
Full year
   Annual
   Payment
    	
 
    	
5th
    Payment
    	
 
    	
Total
    	
 
    
	
EBITDA
    	
 
    	
26.67
    	
%
    	
18.67
    	
%
    	
—
    	
 
    	
18.67
    	
%
    
	
EBITDA Margin
    	
 
    	
26.67
    	
%
    	
18.67
    	
%
    	
—
    	
 
    	
18.67
    	
%
    
	
OCF
    	
 
    	
26.67
    	
%
    	
18.67
    	
%
    	
—
    	
 
    	
18.67
    	
%
    
	
Functional Performance
    	
 
    	
20.00
    	
%
    	
 
    	
 
    	
14.
    	
%
    	
14.0
    	
%
    
	
Total
    	
 
    	
100.0
    	
%
    	
56
    	
%
    	
14.0
    	
%
    	
70.0
    	
%
    
	
Payment Date
    	
 
    	
 
    	
 
    	
March 2013
    	
 
    	
March 2013
    	
 
    	
 
    	
 
    

 

3

 

Important Note

 

This document has been prepared by Edwards Group Plc (the Company) for the employees who will be participating in this scheme.

 

This document and its contents are strictly private and confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.

 

The numerical threshold and other figures contained in this document are performance targets only. No statement in this document is intended as a profit forecast, a profit estimate or a projection as to the Company’s future financial performance.

 

By accepting a copy of this document, you agree to be bound by the foregoing limitations and conditions.

 

4

 

Scheme Rules — Bonus Scheme FY12

 

1.              The bonus scheme does not in any way affect the terms of employment of any participant. Nothing in the scheme nor any action taken under it shall be construed as giving a participant any rights to be retained in the employment of the Company or any company in the group. The scheme is entirely discretionary and gives rise to no contractual entitlement or expectation as to payment. The operation of this bonus scheme in any one year shall not be construed as entitling any participant to participate in any similar bonus scheme in future years.

 

2.              The scheme shall operate for the Company’s financial year.

 

3.              The Company reserves the right to modify or terminate the scheme at any time.

 

4.              Any bonus is payable at the absolute discretion of the Board of the Company.

 

5.              Any bonus payable under the scheme will be based on the participant’s actual basic salary at the last day of each quarter and payable only to participants who are employees of the Company or any company in the group at the date of payment.

 

6.              Any changes in the bonus target opportunity applicable to a participant during any quarter (e.g. because of a mid-quarter promotion) will be pro-rated accordingly.

 

7.              Any bonus will be pro-rated according to the participant’s start date and any periods of unpaid absence during the bonus year.

 

8.              Any bonus payable under the scheme shall be determined in accordance with the rules set out herein.

 

9.              Any bonus payment will be paid in a lump sum, and will be subject to taxes and applicable deductions.

 

10.       No benefit under the scheme may be assigned, pledged, or charged in any way. Any attempt to encumber such a benefit under the scheme shall be void and, at the Company’s discretion, terminate the participant’s right to such benefit.

 

11.       Any participant in the scheme whose employment is terminated by way of redundancy during the course of any bonus quarter shall be entitled to receive a pro-rated bonus up to the date of termination for that quarter (if any), such payment to be made on the date as set out in the scheme details above.

 

5

 

Edwards Group plc’s Executive Quarterly Bonus Scheme 2012

 

Executive Officers (excluding CEO & CFO)

 

Scheme Objective

 

The Company’s Executive Quarterly Bonus Scheme FY2012 is designed to reward a high performance culture by providing a clear link between the Company’s performance and pay and by aligning your bonus payment to the Company’s overall business achievements.

 

Bonus Structure:

 

·                  80% based on Company Financial performance, 20% based on functional performance

·                  60% of bonus paid quarterly, 40% paid annually

·                  Introduction of an EBITDA Margin threshold to trigger the annual payment elements

 

This year, as in prior years, 80% of your bonus opportunity will be based on the Company’s financial performance. The remaining 20% will be based on functional performance assessed by reference to the functional performance targets you have agreed with the CEO and which are aligned to the Company corporate scorecard.

 

Your annual bonus opportunity is as follows:

 

	
Threshold Bonus Opportunity (%of base salary)
    	
 
    	
12
    	
%
    
	
On Target Bonus Opportunity (% of base salary)
    	
 
    	
60
    	
%
    
	
Maximum Bonus Opportunity (% of base salary)
    	
 
    	
78
    	
%
    

 

The bonus scheme will run from 1 January 2012 to 31 December 2012.

 

Financial Element

 

The financial element will account for 80% of the bonus opportunity and will be based on the following three financial measures:

 

·                  The Company’s EBITDA

·                  The Company’s EBITDA Margin

·                  The Company’s Operating Cash Flow

 

All quarterly targets are cumulative. Each measure is discreet and equally weighted, based upon the Company’s financial priorities, and set out in the table below:

 

6

 

	
 
    	
 
    	
Weighting
    	
 
    	
Financial Targets FY2012
    
	
 
    	
 
    	
(% of bonus
    	
 
    	
Q1
    	
 
    	
Q2
    	
 
    	
Q3
    	
 
    	
Q4
    	
 
    
	
Measure
    	
 
    	
opportunity)
    	
 
    	
Target
    	
 
    	
Maximum
    	
 
    	
Target
    	
 
    	
Maximum
    	
 
    	
Target
    	
 
    	
Maximum
    	
 
    	
Target
    	
 
    	
Maximum
    	
 
    
	
EBITDA
    	
 
    	
20.00%
    	
 
    	
£29.5m
    	
 
    	
£33.8m
    	
 
    	
£62.3m
    	
 
    	
£73.2m
    	
 
    	
£97.4m
    	
 
    	
£113.3m
    	
 
    	
£142.6m
    	
 
    	
£164.3m
    	
 
    
	
EBITDA   Margin
    	
 
    	
20.00%
    	
 
    	
19.3%
    	
 
    	
20.5%
    	
 
    	
20.2%
    	
 
    	
21.8%
    	
 
    	
20.8%
    	
 
    	
22.3%
    	
 
    	
22.0%
    	
 
    	
23.5%
    	
 
    
	
EBITDA   Margin (Annualised Element)
    	
 
    	
20.00%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
OCF
    	
 
    	
20.00%
    	
 
    	
£14.5m
    	
 
    	
£23.0m
    	
 
    	
£38.8m
    	
 
    	
£51.0m
    	
 
    	
£64.2m
    	
 
    	
£82.0m
    	
 
    	
£95.6m
    	
 
    	
£115.0m
    	
 
    
	
EBITDA  Margin % for Q5 Payment
    	
 
    	
FY Target
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
22.0%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
FY Threshold
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
20.0%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

At the end of each quarter, a bonus payment will be made in respect of each financial measure if the target for that measure has been met. Payments will normally be made in the second month after the close of the quarter (due to confidentiality and financial reporting requirements)

 

·                  If Q1 performance targets are met, you will receive 15% of your annual target bonus opportunity in May 2012.

·                  At the end of Q2, if the first 6 months’ performance targets are met, you will receive an additional 15% of your annual target bonus opportunity in August 2012

·                  At the end of Q3, if the first 9 months’ performance targets are met, you will receive a further 15% of your annual target bonus opportunity in November 2012

·                  Throughout the financial year, there is also the potential to receive higher bonus payments (up to a maximum of 30% of your target bonus) by over-achieving against the targets. The maximum level of stretch bonus payment would be triggered by achieving the Maximum target detailed in the table above.  Incremental bonus would be paid on a ‘straight line’ basis for performance between the target and the maximum target.

·                  At the end of Q4, if full year performance targets are met, then a ‘true up’ will be made for the year — which essentially means that any quarters where the targets were missed will be paid at the appropriate full year achievement level.  This payment would normally be made in March 2013.

·                  If none of the financial targets have been met through the year but the EBITDA Margin threshold target has been met this would then trigger a payment of 50% of the annualised elements of the bonus — the functional performance element (normally worth a potential 20%) and the non-quarterly financial performance element (also normally worth a potential 20%)

 

7

 

Functional Performance Element

 

At the end of the year, if the EBITDA Margin target is met, this will trigger a 100% payment pot for the functional performance element.

 

It is your responsibility to set and agree your functional performance targets with the CEO which are aligned to the Company corporate scorecard. At the end of the year, you will be given a Functional Performance Score (based on performance against your agreed functional performance targets) which will be used to determine any payment within the final 20% of the bonus opportunity.

 

The Functional Performance Score will be translated into a factor to be used in your bonus calculation as per the table to the right.

 

Achievement of the threshold target for EBITDA margin will trigger a 50% payment pot for the functional performance element.  Performance between the threshold level and the target level EBITDA margin will be calculated on a ‘straight line’ basis to calculate the payment pot.  The fifth payment is capped at a 100% payment pot maximum and an assessment of the relevant functional performance score may adjust this upwards or downwards.

 

	
Functional
   Performance
   Score
    	
 
    	
Functional
   Performance
   Factor
    	
 
    
	
<20
    	
 
    	
0.00
    	
 
    
	
20
    	
 
    	
0.25
    	
 
    
	
50
    	
 
    	
0.53
    	
 
    
	
75
    	
 
    	
0.77
    	
 
    
	
100
    	
 
    	
1.00
    	
 
    
	
125
    	
 
    	
1.08
    	
 
    
	
150
    	
 
    	
1.15
    	
 
    
	
175
    	
 
    	
1.23
    	
 
    
	
200
    	
 
    	
1.30
    	
 
    

 

The individual fifth payment will be calculated by multiplying the Functional Performance Factor, the 20% weighting and the On Target Bonus Opportunity percentage, as per the example below (which assumes a Functional Performance Score of 125):

 

	
 

Functional
   Performance
   Factor
    =
    1.08
    	
x
    	
 

Weighting

=
    20% of the
   Bonus Target
    	
x
    	
On Target
   Bonus
   Opportunity
   percentage
    =
    60% of Base
   Salary
    	
=
    	
 

Payment
    (as a % of 
   Base Salary)

12.96%
    

 

Any payment related to the functional performance element will normally be made in March 2013.

 

If the threshold EBITDA Margin target is not met the Board may at its discretion authorise payment of the functional performance element.

 

8

 

How does the scheme work?

 

Payments related to the financial element will only be triggered in respect of each individual financial measure if the target for each such individual financial measure is achieved at the end of each quarter. No payments will be made for measures below target. Subject to the achievement of these targets, you will receive payment on or around the dates set out above.

 

Payment related to the functional performance element can only be triggered if at the end of the year, the EBITDA Margin performance metric exceeds the Threshold level.

 

The table below sets out an illustration of your on target bonus opportunity - as a percentage of base salary - and demonstrates how the scheme will operate.

 

	
 
    	
 
    	
 
    	
 
    	
Target Bonus Opportunity*
   (as a % of base salary)
    	
 
    
	
Metric
    	
 
    	
Weighting
    	
 
    	
Q1
    	
 
    	
Q2
    	
 
    	
Q3
    	
 
    	
Q4
    	
 
    	
Annual
   Payment
    	
 
    	
5th
   Payment
    	
 
    	
Annual
    	
 
    
	
EBITDA
    	
 
    	
20.00
    	
%
    	
3.0
    	
%
    	
3.0
    	
%
    	
3.0
    	
%
    	
3.0
    	
%
    	
 
    	
 
    	
—
    	
 
    	
12.0
    	
%
    
	
EBITDA   Margin
    	
 
    	
40.00
    	
%
    	
3.0
    	
%
    	
3.0
    	
%
    	
3.0
    	
%
    	
3.0
    	
%
    	
12
    	
%
    	
—
    	
 
    	
24.0
    	
%
    
	
OCF
    	
 
    	
20.00
    	
%
    	
3.0
    	
%
    	
3.0
    	
%
    	
3.0
    	
%
    	
3.0
    	
%
    	
 
    	
 
    	
—
    	
 
    	
12.0
    	
%
    
	
Functional   Performance
    	
 
    	
20.00
    	
%
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
—
    	
 
    	
 
    	
 
    	
12.0
    	
%
    	
12.0
    	
%
    
	
Total
    	
 
    	
100.0
    	
%
    	
9.0
    	
%
    	
9.0
    	
%
    	
9.0
    	
%
    	
9.0
    	
%
    	
12
    	
%
    	
12.0
    	
%
    	
60.0
    	
%
    
	
Payment   Date**
    	
 
    	
 
    	
 
    	
May 2012
    	
 
    	
August 2012
    	
 
    	
November 2012
    	
 
    	
March 2013
    	
 
    	
March 2013
    	
 
    	
March 2013
    	
 
    	
 
    	
 
    

 

*Functional Performance Score at 100 and Financial performance at Target each quarter.

 

** Payment will be made on these dates or as soon as reasonably practicable after them, taking account of the Company’s confidentiality and financial reporting obligations

 

Important Note

 

This document has been prepared by Edwards Group Plc (the Company) for the employees who will be participating in this scheme.

 

This document and its contents are strictly private and confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.

 

The numerical threshold and other figures contained in this document are performance targets only. No statement in this document is intended as a profit forecast, a profit estimate or a projection as to the Company’s future financial performance.

 

By accepting a copy of this document, you agree to be bound by the foregoing limitations and conditions.

 

9

 

Scheme Rules — Bonus Scheme FY12

 

12.       The bonus scheme does not in any way affect the terms of employment of any participant. Nothing in the scheme nor any action taken under it shall be construed as giving a participant any rights to be retained in the employment of the Company or any company in the group. The scheme is entirely discretionary and gives rise to no contractual entitlement or expectation as to payment. The operation of this bonus scheme in any one year shall not be construed as entitling any participant to participate in any similar bonus scheme in future years.

 

13.       The scheme shall operate for the Company’s financial year.

 

14.       The Company reserves the right to modify or terminate the scheme at any time.

 

15.       Any bonus is payable at the absolute discretion of the Board of the Company.

 

16.       Any bonus payable under the scheme will be based on the participant’s actual basic salary at the last day of each quarter and payable only to participants who are employees of the Company or any company in the group at the date of payment.

 

17.       Any changes in the bonus target opportunity applicable to a participant during any quarter (e.g. because of a mid-quarter promotion) will be pro-rated accordingly.

 

18.       Any bonus will be pro-rated according to the participant’s start date and any periods of unpaid absence during the bonus year.

 

19.       Any bonus payable under the scheme shall be determined in accordance with the rules set out herein.

 

20.       Any bonus payment will be paid in a lump sum, and will be subject to taxes and applicable deductions.

 

21.       No benefit under the scheme may be assigned, pledged, or charged in any way. Any attempt to encumber such a benefit under the scheme shall be void and, at the Company’s discretion, terminate the participant’s right to such benefit.

 

22.       Any participant in the scheme whose employment is terminated by way of redundancy during the course of any bonus quarter shall be entitled to receive a pro-rated bonus up to the date of termination for that quarter (if any), such payment to be made on the date as set out in the scheme details above.

 

10

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