Document:

Exhibit 4.14

 

	
  

  	
   

  	
  LIMITED LIABILITY PARTNERSHIP

  

 

 

 

DIAGEO PLC UK SHARESAVE SCHEME 2000

 

 

Adopted by the
Board:  6 September 2000

Amended by the
Routine Business Committee:  7
February 2006 & 29 August 2008

Amended by the
Remuneration Committee:  26 August 2008

H.M. Revenue & Customs
reference:  SR2557

 

 

CONTENTS

 

	
  Rule

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions And Interpretation

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Eligibility

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
  Grant Of Options

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
  Exercise Of Options

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
  Takeover, Reconstruction And Winding Up

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
  Variation Of Capital

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
  Alterations

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
  Miscellaneous

  	
   

  	
  11

  

 

 

1.                                 DEFINITIONS AND INTERPRETATION

 

1.1                           In this Scheme, unless the context
otherwise requires:-

 

“3-Year Option”, “5-Year Option” and “7-Year
Option” have the meanings given in sub-rule 3.2  below;

 

“Associated Company” means an associated
company within the meaning given to that expression by paragraph 47 of Schedule
3;

 

“the Board” means the board of directors of
the Company or a committee appointed by them;

 

“Bonus Date”, in relation to an option,
means:-

 

1.1.1                            in the case of a 3-Year Option, the earliest date on which the bonus
is payable,

 

1.1.2                            in the case of a 5-Year Option, the earliest date on which a bonus
is payable, and

 

1.1.3                            in the case of a 7-Year Option, the earliest date on which the
maximum bonus is payable;

 

and for this
purpose “payable” means payable under the Savings Contract made in connection
with the option;

 

“the Company” means Diageo plc (registered
in England and Wales No. 23307);

 

“the Grant Day” shall be construed in
accordance with sub-rule 2.1 below;

 

“the
London Stock Exchange” means the
London Stock Exchange plc;

 

“Participant” means a person who holds an
option granted under this Scheme;

 

“Participating Company” means the Company or
any Subsidiary to which the Board has resolved that this Scheme shall for the
time being extend and any Related Company to which the Board has with the prior
approval of the Inland Revenue resolved that this Scheme shall for the time
being extend;

 

“Related
Company” means a company which is not
under the control of any single person, but is under the control of two
persons, one of them being the Company;

 

“Savings Body” means any building society,
institution authorised under the Banking Act 1987 or relevant European
institution (within the meaning of Schedule 15A to the Income and Corporation
Taxes Act 1988) with which a Savings Contract can be made;

 

“Savings Contract” means an agreement to pay
monthly contributions under the terms of a certified contractual savings
scheme, within the meaning of section 326 of the Income and Corporation Taxes
Act 1988, which has been approved by the Inland Revenue for the purposes of
Schedule 3;

 

“Schedule 3” means Schedule 3 to the Income
Tax Act 2003;

 

1

 

“Subsidiary” means a body corporate which is
a subsidiary of the Company (within the meaning of section 736 of the Companies
Act 1985) and of which the Company has control (within the meaning of section
719 of the Income Tax Act 2003);

 

“the Income Tax Act 2003” means the Income
Tax (Earnings and Pensions) Act 2003;

 

and
expressions not otherwise defined in this Scheme have the same meanings as they
have in Schedule 3.

 

1.2                           Any reference in this Scheme to any
enactment includes a reference to that enactment as from time to time modified,
extended or re-enacted.

 

1.3                           Expressions in italics are for guidance
only and do not form part of this Scheme.

 

2.                                 ELIGIBILITY

 

2.1                           Subject to sub-rule 2.5 below, an
individual is eligible to be granted an option on any day (“the Grant Day”) if (and only if):-

 

2.1.1                            he is on the Grant Day an employee or director of a company which is
a Participating Company; and

 

2.1.2                            he either satisfies the conditions specified in sub-rule 2.2
below or is nominated by the Board for this purpose.

 

2.2                           The conditions referred to in sub-rule 2.1.2
above are that the individual:-

 

2.2.1                            shall at all times during the qualifying period have been an
employee (but not a director) or a full-time director of the Company or a
company which was for the time being a Subsidiary ; and

 

has earnings
from his employment or office which are (or would be if there were any) general
earnings to which section 15 of ITEPA applies (earnings
for year when employee resident in the UK) and those general
earnings are (or would be if there were any) earnings for a tax year in which
the individual is ordinarily resident in the UK.

 

2.3                           For the purposes of sub-rule 2.2
above:-

 

2.3.1                            the relevant time is the end of the last financial year of the Company ending prior
to the Grant Day or such other time during the period of 5 years ending with
the Grant Day as the Board may determine (provided that no such determination
may be made if it would have the effect that the qualifying period would not fall
within that 5-year period);

 

2.3.2                            the qualifying period is the period of 12 months ending at the relevant time or such
other period ending at the relevant time but falling within the 5-year period
mentioned in paragraph 2.3.1 above as the Board may determine;

 

2.3.3                            an individual shall be treated as a full-time director of a company if he is obliged to devote to
the performance of the duties of his office or employment with the company not
less than 25 hours a week;

 

2

 

2.3.4                            Chapter I of Part XIV of the Employment Rights Act 1996 shall
have effect, with any necessary changes, for ascertaining the length of the
period during which an individual shall have been an employee or a full-time
director and whether he shall have been an employee or a full-time director at
all times during that period.

 

2.4                           Any determination of the Board under
paragraph 2.3.1 or 2.3.2 above shall have effect in relation to every
individual for the purpose of ascertaining whether he is eligible to be granted
an option on the Grant Day.

 

2.5                           An individual is not eligible to be
granted an option at any time if he is at that time ineligible to participate
in this Scheme by virtue of paragraph 11 of Schedule 3 (material interest in close company).

 

3.                                 GRANT OF OPTIONS

 

3.1                           Subject to Rule 4 below, the Board
may grant an option to purchase shares in the Company which satisfy the
requirements of paragraphs 18 to 22 of Schedule 3 (fully paid up, unrestricted, ordinary share capital), upon
the terms set out in this Scheme, to any individual who:-

 

3.1.1                            is eligible to be granted an option in accordance with Rule 2
above, and

 

3.1.2                            has applied for an option and proposed to make a Savings Contract in
connection with it (with a Savings Body approved by the Board) in the form and
manner prescribed by the Board.

 

3.2                           The type of option to be granted to an
individual, that is to say a 3-Year Option, a 5-Year Option or a 7-Year Option,
shall be determined by the Board or, if the Board so permits, by the
individual; and for this purpose:-

 

3.2.1                            a 3-Year Option is an
option in connection with which a three year Savings Contract is to be made and
in respect of which the repayment is to be taken as including the bonus;

 

3.2.2                            a 5-Year Option is an
option in connection with which a five year Savings Contract is to be made and
in respect of which the repayment is to be taken as including a bonus other
than the maximum bonus; and

 

3.2.3                            a 7-Year Option is an
option in connection with which a five year Savings Contract is to be made and
in respect of which the repayment is to be taken as including the maximum
bonus.

 

3.3                           The amount of the monthly contribution
under the Savings Contract to be made in connection with an option granted to
an individual shall be the amount which the individual shall have specified in
his application for the option that he is willing to pay or, if lower, the
maximum permitted amount, that is to say, the maximum amount which:-

 

3.3.1                            when aggregated with the amount of his monthly contributions under
any other Savings Contract linked to this Scheme or to any other
savings-related share 

 

3

 

option
scheme approved under Schedule 9, does not exceed £250 (but exceeds a minimum
of £5) or such other maximum or minimum amounts as may for the time being be
permitted by paragraph 25(3) of Schedule 3;

 

3.3.2                            does not exceed the maximum amount for the time being permitted
under the terms of the Savings Contract; and

 

3.3.3                            when aggregated with the amount of his monthly contributions under
any other Savings Contract linked to this Scheme, does not exceed any maximum
amount determined by the Board.

 

3.4                           The number of shares in respect of
which an option may be granted to any individual shall be the maximum number
which can be paid for, at the price determined under sub-rule 3.5 below,
with monies equal to the amount of the repayment due on the Bonus Date under
the Savings Contract to be made in connection with the option.

 

3.5                           The price at which shares may be
acquired by the exercise of options of a particular type granted on any day
shall be determined by the Board and stated on that day, provided that:-

 

3.5.1                            if shares of the same class as those shares are quoted in the London
Stock Exchange Daily Official List, the price shall not be less than the
Specified Percentage of-

 

(a)                     the average of the middle-market quotations of shares of that class
(as derived from the Daily Official List) on the three consecutive dealing
days, selected by the Board prior to the first of such dealing days, falling
wholly within the six week period during which invitations may be issued in
accordance with Rule 3.7 below; or

 

(b)                    if the first of those dealing days does not fall within the period
of 30 days (or, where sub-rule 3.10 below applies, 42 days) ending with
the day on which the options are granted or falls prior to the date on which
the Company last announced its annual or half-yearly results, the middle market
quotation of shares of that class (as derived from the Daily Official List) on
the dealing day last preceding the day on which the options are granted or such
other dealing day as may be agreed in advance with the Inland Revenue;

 

3.5.2                            if paragraphs (a) and (b)  above do not apply, the price
shall not be less than the Specified Percentage of the market value (within the
meaning of Part VIII of the Taxation of Chargeable Gains Act 1992) of
shares of that class, as agreed in advance for the purposes of this Scheme with
the Shares Valuation Division of the Inland Revenue, on -

 

(a)                     the date on which invitations to apply for the options were given
pursuant to sub-rule 3.6 below, or

 

(b)                    if that date does not fall within the period of 30 days ending with
the day on which the options are granted, on the day on which the options are 

 

4

 

granted or such other day as may be agreed in
advance with the Inland Revenue;

 

and for this
purpose “the Specified Percentage”
is 80 per cent. or such other percentage as may be specified in paragraph 28 of
Schedule 3.

 

3.6                           The Board shall ensure that, in
relation to the grant of options on any day:-

 

3.6.1                            every individual who is eligible to be granted an option on that day
has been given an invitation;

 

3.6.2                            the invitation specifies a period of not less than 14 days in which
an application for an option may be made; and

 

3.6.3                            every eligible individual who has applied for an option as mentioned
in sub-rule 3.1 above is in fact granted an option on that day.

 

3.7                           An invitation to apply for an option
may only be given once the Scheme has been approved by the Inland Revenue under
Schedule 3 and only:-

 

3.7.1                            within the period of 6 weeks beginning with -

 

(a)                     the date on which this Scheme is approved by the Inland Revenue; or

 

(b)                    the dealing day next following the date on which the Company
announces its results for any period; or

 

(c)                     at any other time when the circumstances are considered by the Board
to be sufficiently exceptional to justify the giving of an invitation; and

 

3.7.2                            within the period of 10 years beginning with the date on which this
Scheme is adopted by the Company.

 

3.8                           An option granted to any person:-

 

3.8.1                            shall not, except as provided in sub-rule 4.3 below, be capable
of being transferred by him; and

 

3.8.2                            shall lapse forthwith if he is adjudged bankrupt.

 

3.9                           No options shall be granted to acquire
a number of shares which exceeds any number determined by the Board for this
purpose and if the grant of options on any day would but for this sub-rule cause
any of the above limit to be exceeded, the provisions set out in sub-rule 3.10
below shall be successively applied (in the order in which they are set out) so
far as is necessary to ensure that this limit is not exceeded.

 

3.10                     those provisions are:-

 

3.10.1                      unless paragraph 3.10.2 below applies, the amount of the monthly
contribution determined under sub-rule 3.3 above shall be taken as
successively reduced by 0.5 percent thereof, 1 percent thereof, 1.5 percent
thereof and so on and then 

 

5

 

rounded
up to the nearest pound, but shall not be reduced to less than the minimum
amount permitted under the terms of the Savings Contract;

 

3.10.2                      if the Board shall have decided that this paragraph is to apply, for
the purpose of determining the amount of the monthly contribution, the maximum
permitted amount referred to in sub-rule 3.3 above shall be taken as
successively reduced by £1, £2, £3 and so on, but shall not be reduced to less
than the minimum amount permitted under the terms of the Savings Contract:

 

3.10.3                      any option which would otherwise be a 7-Year Options shall be a
5-Year Option;

 

3.10.4                      any option which would otherwise be a 5-Year Option shall be a
3-Year Option;

 

3.10.5                      for the purposes of sub-rule 3.4 above, the repayment under the
Savings Contract shall be taken as not including a bonus;

 

3.10.6                      the Board shall not grant any options on the day in question.

 

3.11                     No shares may be issued upon the
exercise of an option granted under this Scheme since a Participant may acquire
only existing shares in the Company (including treasury shares held by the
Company) upon exercise.

 

3.12                     No options shall be granted, or shares
issued otherwise than pursuant to the exercise of an option, in any year which
would, at the time of the grant, cause the number of shares in the Company
which shall have been or may be issued in pursuance of options granted in the
period of ten calendar years ending with that year, or have been issued in
that period otherwise than in pursuance of options, under the Scheme or under
any other employees’ share scheme adopted by the Company to exceed such number
as represents 10 per cent of the ordinary share capital of Company in issue at
that time.

 

3.13                     Any treasury shares held by the Company
which are transferred to Participants in satisfaction of options shall be
treated as issued for the purposes of sub-rule 3.12 above.

 

3.14                     Where any option relating to unissued
shares is released or lapses without being exercised (or the Board makes
arrangements for it to be satisfied by the transfer of existing shares), the
shares concerned will be ignored when calculating the limit in sub-rule 3.12
above.

 

4.                                 EXERCISE OF OPTIONS

 

4.1                           The exercise of any option shall be
effected in the form and manner prescribed by the Board, provided that the
monies paid for shares on such exercise shall not exceed the amount of the
repayment made and any interest paid under the Savings Contract made in
connection with the option.

 

4.2                           Subject to sub-rules 4.3, 4.4 and
4.6 below and to Rule 5 below, an option shall not be capable of being
exercised before the Bonus Date.

 

4.3                           Subject to sub-rule 4.8 below:-

 

6

 

4.3.1                            if any Participant dies before the Bonus Date, any option granted to
him may (and must, if at all) be exercised by his personal representatives
within 12 months after the date of his death, and

 

4.3.2                            if he dies on or within 6 months after the Bonus Date, any option
granted to him may (and must, if at all) be exercised by his personal
representatives within 12 months after the Bonus Date,

 

provided in
either case that his death occurs at a time when he either holds the office or
employment by virtue of which he is eligible to participate in this Scheme or
is entitled to exercise the option by virtue of sub-rule 4.4 below.

 

4.4                           Subject to sub-rule 4.8 below, if
any Participant ceases to hold the office or employment by virtue of which he
is eligible to participate in this Scheme (otherwise than by reason of his
death), the following provisions apply in relation to any option granted to
him:-

 

4.4.1                            if he so ceases by reason of injury, disability, redundancy within
the meaning of the Employment Rights Act 1996, or retirement on reaching the
age of 60  or any other age at which he
is bound to retire in accordance with the terms of his contract of employment,
the option may (and subject to sub-rule 4.3 above must, if at all) be
exercised within 6 months of his so ceasing;

 

4.4.2                            if he so ceases by reason only that the office or employment is in a
company of which the Company ceases to have control or relates to a business or
part of a business which is transferred to a person who is neither an
Associated Company of the Company nor a company of which the Company has
control, the option may (and subject to sub-rule 4.3 above must, if at
all) be exercised within 6 months of his so ceasing;

 

4.4.3                            if he so ceases for any other reason, the option may not be
exercised at all.

 

4.5                           Subject to sub-rule 4.8 below, if,
at the Bonus Date, a Participant holds an office or employment with a company
which is not a Participating Company but which is an Associated Company or a
company of which the Company has control, any option granted to him may (and
subject to sub-rule 4.3 above must, if at all) be exercised within 6
months of the Bonus Date.

 

4.6                           Subject to sub-rule 4.8 below,
where any Participant continues to hold the office or employment by virtue of
which he is eligible to participate in this Scheme after the date on which he
reaches the age of 60 , he may exercise any option within 6 months of that
date.

 

4.7                           Subject to sub-rule 4.3 above, an
option shall not be capable of being exercised later than 6 months after
the Bonus Date.

 

4.8                           Where, before an option has become
capable of being exercised, the Participant gives notice that he intends to
stop paying monthly contributions under the Savings Contract made in connection
with the option, or is deemed under its terms to have given such notice, or
makes an application for repayment of the monthly contributions paid under it,
the option may not be exercised at all.

 

7

 

4.9                           A Participant shall not be treated for
the purposes of sub-rules 4.3 and 4.4 above as ceasing to hold the office
or employment by virtue of which he is eligible to participate in this Scheme
until he ceases to hold an office or employment in the Company or any
Associated Company or company of which the Company has control and not on any
earlier date, and a female Participant who ceases to hold the office or
employment by virtue of which she is eligible to participate in this Scheme by
reason of pregnancy or confinement and who exercises her right to return to
work under the Employment Rights Act 1996 before exercising her option shall be
treated for the purposes of sub-rule 4.4 above as not having ceased to
hold that office or employment.

 

4.10                     A Participant shall not be eligible to
exercise an option at any time:-

 

4.10.1                      unless, subject to sub-rules 4.4 and 4.5 above, he is at that
time a director or employee of a Participating Company;

 

4.10.2                      if he is not at that time eligible to participate in this Scheme by
virtue of paragraph 11 of Schedule 3 (material
interest in close company).

 

4.11                     An option shall not be capable of being
exercised more than once.

 

4.12                     Within 30 days after an option has been
exercised by any person, the Board shall procure the transfer to him (or a
nominee for him) of the number of shares in respect of which the option has
been exercised, provided that the Board considers that the transfer thereof
would be lawful.

 

5.                                 TAKEOVER, RECONSTRUCTION AND WINDING UP

 

5.1                           If any person obtains control of the
Company (within the meaning of section 719 of the Income Tax Act 2003) as a
result of making a general offer to acquire shares in the Company, or having
obtained control makes such an offer, the Board shall within 30 days of
becoming aware thereof notify every Participant thereof and, subject to sub-rules 4.3,
4.4, 4.7 and 4.8 above, any option may be exercised within one month (or such
longer period as the Board may permit) of the notification, but not later than
6 months after that person has obtained control.

 

5.2                           For the purposes of sub-rule 5.1
above, a person shall be deemed to have obtained control of the Company if he
and others acting in concert with him have together obtained control of it.

 

5.3                           If any person becomes bound or entitled
to acquire shares in the Company under sections 428 to 430F of the Companies
Act 1985, or if under section 425 of that Act the Court sanctions a compromise
or arrangement proposed for the purposes of or in connection with a scheme for
the reconstruction of the Company or its amalgamation with any other company or
companies, or if the Company passes a resolution for voluntary winding up, the
Board shall forthwith notify every Participant thereof and, subject to sub-rules 4.3,
4.4, 4.7 and 4.8 above, any option may be exercised within one month of the
notification, but to the extent that it is not exercised within that period
shall (notwithstanding any other provision of this Scheme) lapse on the
expiration of that period.

 

5.4                           If any company (“the acquiring company”):-

 

8

 

5.4.1                            obtains control of the Company as a result of making-

 

(a)                     a general offer to acquire the whole of the issued ordinary share
capital of the Company which is made on a condition such that if it is
satisfied the acquiring company will have control of the Company, or

 

(b)                    a general offer to acquire all the shares in the Company which are
of the same class as the shares which may be acquired by the exercise of
options granted under this Scheme, or

 

5.4.2                            obtains control of the Company in pursuance of a compromise or
arrangement sanctioned by the court under section 425 of the Companies Act 1985
or Article 418 of the Companies (Northern Ireland) Order 1986, or

 

5.4.3                            becomes bound or entitled to acquire shares in the Company under
sections 428 to 430F of that Act or Articles 421 to 423 of that Order,

 

any
Participant may at any time within the appropriate period (which expression
shall be construed in accordance with paragraph 38(3) of
Schedule 3), by agreement with the acquiring company, release any option
which has not lapsed (“the old option”) in consideration of the grant to him of
an option (“the new option”) which (for the purposes of that paragraph) is
equivalent to the old option but relates to shares in a different company
(whether the acquiring company itself or some other company falling within
paragraph 18(b) or (c) of Schedule 3).

 

5.5                           The new option shall not be regarded
for the purposes of sub-rule 5.4 above as equivalent to the old option
unless the conditions set out in paragraph 39 of Schedule 3 are satisfied, but
so that the provisions of this Scheme shall for this purpose be construed as
if:-

 

5.5.1                            the new option were an option granted under this Scheme at the same
time as the old option;

 

5.5.2                            except for the purposes of the definitions of “Participating Company”
and “Subsidiary” in sub-rule 1.1 and sub-rules 4.4.2, 4.5 and 4.9
above, the expression “the Company” were defined as “a company whose shares may
be acquired by the exercise of options granted under this Scheme”;

 

5.5.3                            the Savings Contract made in connection with the old option had been
made in connection with the new option;

 

5.5.4                            the Bonus Date in relation to the new option were the same as that
in relation to the old option; and

 

5.5.5                            Rule 7.2 below were omitted.

 

5.6                           For options granted on or
after 26 August 2008, in the event that:

 

5.6.1                            an offer (as referred to in Rule 5.1) is
made or a compromise or arrangement (as referred to in Rule 5.3) is
proposed which is expected to result in the Company becoming controlled by a
new company (the “New Company”);

 

9

 

5.6.2                            at least 75% of the shares in the New Company
are expected to be held by substantially the same persons who immediately
before the offer or proposal was made were shareholders in the Company; and

 

5.6.3                            the Board and the New Company agree that this Rule should
apply

 

then an
option shall not become exercisable under Rule 5.1 or Rule 5.3 but
may nonetheless be released in consideration for the grant of a new option
under Rule 5.5 and, if not so released, shall then automatically lapse at
the end of the appropriate period (which
expression shall be construed in accordance with paragraph 38(3) of
Schedule 3).

 

6.                                 VARIATION OF CAPITAL

 

6.1                           Subject to sub-rule 6.3 below, in
the event of any variation of the share capital of the Company, the Board may
make such adjustments as it considers appropriate under sub-rule 6.2
below.

 

6.2                           An adjustment made under this sub-rule shall
be to one or more of the following:-

 

6.2.1                            the number of shares in respect of which any option may be
exercised;

 

6.2.2                            the price at which shares may be acquired by the exercise of any
option;

 

6.2.3                            where any option has been exercised but no shares have been allotted
or transferred pursuant to the exercise, the number of shares which may be
allotted or transferred and the price at which they may be acquired.

 

6.3                           At a time when this Scheme is approved
by the Inland Revenue under Schedule 9, no adjustment under sub-rule 6.2
above shall be made without the prior approval of the Inland Revenue.

 

6.4                           An adjustment under sub-rule 6.2
above may have the effect of reducing the price at which shares may be acquired
by the exercise of an option to less than their nominal value.

 

7.                                 ALTERATIONS

 

7.1                           Subject to sub-rule 7.2 below, the
Board may at any time alter this Scheme, provided that no alteration shall be
made to a key feature (as defined in paragraph 42(2) of Schedule 3)
of this Scheme at a time when this Scheme is approved by the Inland Revenue
under Schedule 3 without the prior approval of the Inland Revenue.

 

7.2                           Subject to sub-rule 7.3 below, no
alteration to the advantage of the persons to whom options may be granted shall
be made under sub-rule 7.1 above to any of Rules 2, 3.3, 3.5, 3.11 to
3.14 inclusive, 4.2 to 4.11 inclusive, 6.1 and 6.2 without the prior approval
by ordinary resolution of the members of the Company in general meeting.

 

7.3                           Sub-rule 7.2 above shall not apply
to any minor alteration to benefit the administration of this Scheme, to take
account of a change in legislation or to obtain or maintain favourable tax,
exchange control or regulatory treatment for Participants, the Company or any
Subsidiary.

 

10

 

7.4                           If any alteration or adjustment is made
which means that the Scheme is outside the provisions of Schedule 9 and can no
longer be approved by the Inland Revenue, the Company will notify the Inland
Revenue of this as soon as is practicable.

 

8.                                 MISCELLANEOUS

 

8.1                           The rights and obligations of any
individual under the terms of his office or employment with the Company or a
Subsidiary shall not be affected by his participation in this Scheme or any
right which he may have to participate in it, and an individual who
participates in it shall waive all and any rights to compensation or damages in
consequence of the termination of his office or employment for any reason
whatsoever insofar as those rights arise or may arise from his ceasing to have
rights under or be entitled to exercise any option as a result of such
termination.

 

8.2                           In the event of any dispute or
disagreement as to the interpretation of this Scheme, or as to any question or
right arising from or related to this Scheme, the decision of the Board shall
be final and binding upon all persons.

 

8.3                           In the event that shares are
transferred to a Participant in pursuance of any option, the Participant shall,
if so required by the person making the transfer, join that person in making a
claim for relief under section 165 of the Taxation of Chargeable Gains Act 1992
in respect of the disposal made by him in effecting such transfer.

 

8.4                           Any notice or other communication under
or in connection with this Scheme may be given by personal delivery or by
sending it 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 Company or a Subsidiary, 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.

 

11Exhibit 4.15

 

	
  

  	
   

  	
  LIMITED LIABILITY PARTNERSHIP

   

  

 

 

THE DIAGEO 2001 SHARE INCENTIVE PLAN

 

 

Ref:  RTT/G1535/00417

Inland
Revenue:  A1347

 

Adopted:  5 September 2001

Approved:  3 October 2001

Amended:  17 April 2002

Amended:
20 October 2004

Amended: 
7 February 2007

 

 

CONTENTS

 

	
  Rule

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Definitions

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Purpose Of The Plan

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Eligibility Of Individuals

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Participation On Same Terms

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Limits

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Alterations And Additions

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Miscellaneous

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Free Shares

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Partnership Shares

  	
   

  	
  12

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Matching Shares

  	
   

  	
  15

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Dividend Shares

  	
   

  	
  17

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Company Reconstructions

  	
   

  	
  20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Rights Issues

  	
   

  	
  21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPENDIX A

  	
   

  	
  22

  	
   

  
	
  Free Share Agreement

  	
   

  	
  22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Appendix B

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Partnership Share Agreement

  	
   

  	
  24

  	
   

  

 

 

THE
DIAGEO 2001 SHARE INCENTIVE PLAN

 

1.                                 DEFINITIONS

 

1.1                           In this Plan, unless the context otherwise requires:

 

“Accumulation Period” means in relation to Partnership
Shares, a period specified by the Board not exceeding twelve months during
which the Trustees accumulate a Qualifying Employee’s Partnership Share Money
before purchasing Partnership Shares or repaying it to the employee;

 

“Acquisition Date” means:

 

(a)                                      in relation to Partnership Shares, where there is no Accumulation
Period, the date set by the Trustees in relation to the Award, being a date
within 30 days after the last date on which the Partnership Share Money to be
applied in purchasing the Partnership Shares was deducted;

 

(b)                                     in relation to Partnership Shares, where there is an Accumulation
Period, the date set by the Trustees in relation to the Award, being a date
within 30 days after the end of the Accumulation Period which applies in
relation to the Award; and

 

(c)                                      in relation to Dividend Shares, the date set by the Trustees in
relation to the acquisition of such Shares, being a date within 30 days after
the dividend is received by them;

 

“Associated Company” has the same meaning as in section 416
of the Taxes Act 1988;

 

“Award Date” means in relation to Free Shares or Matching
Shares, the date on which such Shares are awarded;

 

“Award” means:

 

(a)                                      in relation to Free Shares and Matching Shares, the appropriation of
Free Shares and Matching Shares in accordance with the Plan; and

 

(b)                                     in relation to Partnership Shares, the purchase of Partnership
Shares on behalf of Qualifying Employees in accordance with the Plan.

 

“the Board” means
the board of directors of the Company or a committee appointed by them;

 

“Capital Receipt” has the same meaning as in paragraph 79 of
the Schedule;

 

“Close Company” has the same meaning as in section 414 of the
Taxes Act 1988;

 

“the Company” means Diageo plc;

 

“Control” has the same meaning as in Section 840 of the
Taxes Act 1988;

 

“Dealing Day” means a day on which the Stock Exchange is open
for business;

 

1

 

“the Deed” means the trust instrument intended to be made
following the adoption of the Plan by the Company in connection with the Plan;

 

“Dividend Shares” means Shares purchased on behalf of a
Participant from reinvestment of dividends under Part D of the Plan and
which are subject to the Plan;

 

“Forfeiture Period” means the period of three years beginning
with the Award Date;

 

“Free Share Agreement” means an agreement in the terms set
out in Appendix A;

 

“Free Shares” means Shares awarded under Part A of the
Plan which are subject to the Plan;

 

“Group Plan” means the Plan as established by the Company and
extending to its Subsidiaries which are Participating Companies;

 

“Holding Period” means:

 

(a)                                      in relation to Free Shares, the period specified by the Board as
mentioned in Rule 8.13;

 

(b)                                     in relation to Matching Shares, the period specified by the Board as
mentioned in Rule 10.5; and

 

(c)                                      in relation to Dividend Shares, the period of three years from the
Acquisition Date;

 

“Initial Market Value” means the Market Value of a Share on
an Award Date and, where the Share is subject to a restriction or risk of
forfeiture, the Market Value shall be determined without reference to that
restriction or risk;

 

“Market Value” means on any day:

 

(a)                                      if the Shares have been admitted to the Daily Official List of the
Stock Exchange, the average of the middle market quotations of a Share as
derived from the Daily Official List of the Stock Exchange for the three
immediately preceding Dealing Days;

 

(b)                                     if the Shares have not been admitted to the Daily Official List of
the Stock Exchange, the Market Value of a Share determined in accordance with
the provisions of Part VIII of the Taxation of Chargeable Gains Act 1992
and agreed for the purposes of the Plan with the Inland Revenue Shares
Valuation Division on or before that day; or

 

(c)                                      in relation to Shares purchased with Partnership Share Money other
than by way of subscription, the actual purchase cost of the Shares provided
that all the Shares are acquired on the same date as they are awarded as
Partnership Shares;

 

(d)                                     In relation to Matching Shares which relate to Partnership Shares
which have been purchased in accordance with paragraph (c) above, the
Market Value of

 

2

 

each Matching Share shall be the same as
the Market Value of each Partnership Share acquired on that date(1);

 

“Matching Shares” means Shares awarded under Part C of
the Plan and which are subject to the Plan;

 

“Material Interest” has the same meaning as in paragraph 15
of the Schedule;

 

“NICs” means National Insurance contributions;

 

“Participant” means an individual who has received under the
Plan an Award of Free Shares, Matching Shares or Partnership Shares, or on
whose behalf Dividend Shares have been acquired;

 

“Participating Company” means the Company and such of its
Subsidiaries as have executed deeds of adherence to the Plan under clause 14 of
the Deed;

 

“Partnership Shares” means Shares awarded under Part B
of the Plan and which are subject to the Plan;

 

“Partnership Share Agreement” means an agreement in the terms
set out in Appendix B;

 

“Partnership Share Money” means money deducted from a
Qualifying Employee’s Salary pursuant to a Partnership Share Agreement and held
by the Trustees to purchase Partnership Shares or to be returned to such a
person;

 

“PAYE” means the requirements of Pay As You Earn as
prescribed by sections 203 to 203L of the Taxes Act 1988 or regulations under
section 203 of that Act;

 

“Performance Allowances” means the criteria for an Award of
Free Shares where:

 

(a)                                      whether Shares are awarded; or

 

(b)                                     the number or value of Shares awarded

 

is conditional on performance targets being
met;

 

“the Plan” means the Diageo 2001 Share Incentive Plan;

 

“Plan Shares” means:

 

(a)                                      Free Shares, Matching Shares or Partnership Shares awarded to
Participants;

 

(b)                                     Dividend Shares acquired on behalf of Participants; and

 

(c)                                      shares in relation to which paragraph 115(5) (company reconstructions: new shares) of the Schedule
applies, in each case that remain subject to the Plan;

 

“Plan Termination Notice” means a notice issued under
paragraph 120 of the Schedule;

 

(1) Paragraph
(d) of definition of Market Value added with effect from 17 April 2002.

 

3

 

“Profit Sharing Scheme” means a profit-sharing scheme
approved by the Board of Inland Revenue under Schedule 9 of the Taxes Act 1988;

 

“Qualifying Company” means:

 

(a)                                      a company that is a Participating Company at the end of the
Qualifying Period; or

 

(b)                                     a company that when the individual was employed by it was a
Participating Company; or

 

(c)                                      a company that when the individual was employed by it was an
Associated Company of

 

(i)                        a company qualifying under paragraph (a) or (b); or

 

(ii)                     another company qualifying under paragraph 14 of the Schedule;

 

“Qualifying Corporate Bond” has the same meaning as in
section 117 of the Taxation of Chargeable Gains Act 1992;

 

“Qualifying Employee” means an employee who must be invited
to participate in an award in accordance with Rule 3.6 and any employee
who the Company has invited in accordance with Rule 3.7;

 

“Qualifying Period” means:

 

(a)                                        in the case of Free Shares, 18 months before the Award is made or
such other period not exceeding that period as the Board may determine in
relation to the Award;

 

(b)                                       in the case of Partnership Shares and Matching Shares where there is
an Accumulation Period, 6 months before the start of the Accumulation Period or
such other period not exceeding that period as the Board may determine in
relation to the Award; and

 

(c)                                        in the case of Partnership Shares and Matching Shares where there is
no Accumulation Period, 18 months before the deduction of Partnership Share
Money relating to the Award or such other period not exceeding that period as
the Board may determine in relation to the Award;

 

“Redundancy” has the same meaning as in the Employment Rights
Act 1996;

 

“Relevant Employment” means employment by the Company or any
Associated Company;

 

“Retirement Age” means age 50;

 

“Salary” has the same meaning as in paragraph 48 of the Schedule;

 

“the Schedule” means Schedule 8 to the Finance Act 2000;

 

4

 

“Shares” means ordinary shares in the capital of the Company
which comply with the conditions set out in paragraph 59 of the Schedule;

 

“the Stock Exchange” means the London Stock Exchange plc;

 

“Subsidiary” means a body corporate which is a subsidiary of
the Company (within the meaning of section 736 of the Companies Act 1985) and
of which the Company has Control;

 

“Tax Year” means a year beginning on 6 April and ending
on the following 5 April;

 

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

 

“the Trustees” means the trustees or trustee for the time
being of the Deed;

 

“the Trust Fund” means all assets transferred to the Trustees
to be held on the terms of the Deed and the assets from time to time
representing such assets, including any accumulations of income;

 

“the Trust Period” means the period of 80 years beginning
with the date of the Deed.

 

1.2                           Any reference in this Plan to any enactment includes a reference to
that enactment as from time to time modified, extended or re-enacted.

 

1.3                           Words of the feminine gender shall include the masculine and vice
versa and words in the singular shall include the plural and vice versa unless,
in either case, the context otherwise requires or it is otherwise stated.

 

1.4                           Expressions in italics are for guidance only and do not form part of
the Plan.

 

2.                                 PURPOSE OF THE PLAN

 

The
purpose of the Plan is to enable employees of Participating Companies to
acquire Shares in the Company which give them a continuing stake in the
Company.

 

3.                                 ELIGIBILITY OF INDIVIDUALS

 

3.1                           Subject to Rule 3.4, individuals may participate in an Award
only if:

 

3.1.1                            they are employees of a Participating Company;

 

3.1.2                            they have been employees of a Qualifying Company at all times during
any Qualifying Period;

 

3.1.3                            they are eligible on the relevant date(s) as set out in Rule 3.5;
and

 

3.1.4                            they do not fail to be eligible under either or both of Rules 3.2
or 3.3.

 

3.2                           Individuals are not eligible to participate in an Award of Shares if
they have, or within the preceding twelve months have had, a Material Interest
in:

 

3.2.1                            a Close Company whose Shares may be appropriated or acquired under
the Plan; or

 

5

 

3.2.2                            a company which has Control of such a company or is a member of a
consortium which owns such a company.

 

3.3                           Individuals are not eligible to participate in an Award of Free
Shares in any Tax Year if in that Tax Year:

 

3.3.1                            they have been awarded shares under a Profit-Sharing Scheme
established by the Company or a Connected Company, or are to be awarded such
shares at the same time; or

 

3.3.2                            they have participated in (or are at the same time to participate
in) another plan established by the Company or a Connected Company and approved
under the Schedule, or if they would have participated in such a plan but for
their failure to meet the relevant Performance Allowances.

 

3.4                           Individuals are not eligible to participate in an Award of
Partnership Shares or Matching Shares in any Tax Year if in that Tax Year they
have participated in (or are at the same time to participate in) another plan
established by the Company or a Connected Company and approved under the
Schedule, or if they would have participated in such a plan but for their
failure to meet the relevant Performance Allowances.

 

3.5                           The relevant dates mentioned in Rule 3.1.3 are:

 

3.5.1                            in the case of Free Shares, the date on which the Award of such
shares is made;

 

3.5.2                            in the case of Partnership Shares or Matching Shares where there is
no Accumulation Period, the date on which the Partnership Share Money relating
to the Award is deducted; and

 

3.5.3                            in the case of Partnership Shares or Matching Shares where there is
an Accumulation Period, the date on which the Partnership Share Money relating
to the Award is first deducted.

 

Employees who must be invited to
participate in Awards

 

3.6                           Individuals shall be invited to participate in the Plan if they meet
the requirements in Rule 3.1 and are chargeable to tax under Case I of
Schedule E in respect of their employment.

 

Employees who may be invited to
participate in Awards

 

3.7                           The Board may also invite any employee who meets the requirements in
Rule 3.1 to participate in the Plan.

 

4.                                 PARTICIPATION ON SAME TERMS

 

4.1                           Subject to Rule 8.11, every Qualifying Employee who is invited
to participate in this Plan shall be invited to participate on the same terms
and those who do participate shall do so on the same terms.

 

4.2                           The Company may make an Award of Free Shares to Qualifying Employees
by reference to their remuneration, length of service or hours worked.

 

6

 

4.3                           The Company may make an Award of Free Shares to Qualifying Employees
by reference to their performance as set out in Rule 8.5.

 

5.                                 LIMITS

 

5.1                           No Shares shall be issued to the Trustees under the Plan in any
calendar year which would, at the time they are issued, cause the aggregate of:

 

5.1.1         the number of Shares issued under the Plan in the period of 10
calendar years ending with that year; and

 

5.1.2         the number of Shares which shall have been or may be issued in
pursuance of options granted in that period, or shall have been granted in that
period otherwise than in pursuance of options, under any employees’ share
scheme adopted by the Company,

 

to exceed such number as represents 10% of the
ordinary share capital of the Company in issue at that time.

 

5.2                           Any treasury shares held by the Company which are transferred to the
Trustees under the Plan shall be treated as issued for the purposes of the
limit in Rule 5.1 above.

 

5.3                           No Awards shall be made after the period of 10 years beginning with
the date on which the Plan is adopted by the Company (which was 5 September 2001).

 

6.                                 ALTERATIONS AND ADDITIONS

 

6.1                           Subject to Rule 6.2, the Board may, with the Trustees’ written
consent, at any time alter this Plan in any respect provided that, if such an
alteration is made at a time when this Plan is approved by the Inland Revenue
under the Schedule, any alteration to a “key feature” (as defined in paragraph
118(3)(a) of the Schedule) shall not have effect unless and until the
written approval of the Inland Revenue has been obtained in accordance with
paragraph 4 of the Schedule.

 

6.2                           No alteration to the advantage of the persons who may participate in
the Plan shall be made under Rule 6.1 to the provisions concerning
eligibility, the individual limits on participation, the overall limits on the
issue of shares under the Plan, the basis of determining how many shares
employees receive and the adjustments that may be made following a rights issue
or any other variation of capital without the prior approval by ordinary
resolution of the members of the Company in general meeting.

 

6.3                           Rule 6.2 shall not apply to any minor alteration to benefit the
administration of the Plan, to take account of a change in legislation or to
obtain or maintain favourable tax, exchange control or regulatory treatment for
Participants, the Company, the trustees or any subsidiary.

 

7.                                 MISCELLANEOUS

 

7.1                           The rights and obligations of any individual under the terms of his
employment with the Company or a Subsidiary shall not be affected by his
participation in this Plan or any right which he may have to participate in it,
and an individual who participates in it shall

 

7

 

waive all and any rights to compensation or damages in
consequence of the termination of his employment for any reason whatsoever
insofar as those rights arise or may arise from his ceasing to have rights
under this Plan as a result of such termination.

 

7.2                           Except where required by law, no money or money’s worth received by
any individual under this Plan shall form part of his remuneration for any
purpose whatsoever.

 

7.3                           In the event of any dispute or disagreement as to the interpretation
of this Plan, or as to any question or right arising from or related to this
Plan, the decision of the Board shall be final and binding upon all persons.

 

7.4                           Any notice or other communication under or in connection with this
Plan may be given in such manner as the Board consider to be appropriate which
may include communication by email or intranet or by personal delivery 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 an
employee of the Company or a Subsidiary, 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 employment.

 

8

 

PART A

 

8.                                 FREE SHARES

 

8.1                           Every Qualifying Employee shall enter into an agreement with the
Company (a “Free Share Agreement”) in the terms of the draft in Appendix A.

 

8.2                           The Trustees, acting with the prior consent of the Board, may from
time to time award Free Shares.

 

8.3                           The number of Free Shares to be awarded by the Trustees to each
Qualifying Employee on an Award Date shall be determined by the Board in
accordance with this Rule 8.

 

Maximum annual Award

 

8.4                           The Initial Market Value of the Shares awarded to a Qualifying
Employee in any Tax Year shall not exceed £3,000 or such other limit as may be
permitted by the Schedule from time to time.

 

Allocation of Free Shares by
reference to performance

 

8.5                           The Board may stipulate that the number of Free Shares (if any) to
be awarded to each Qualifying Employee on a given Award Date shall be
determined by reference to Performance Allowances.

 

8.6                           If Performance Allowances are used, they shall apply to all
Qualifying Employees.

 

8.7                           Where Performance Allowances are used:

 

8.7.1         they shall be determined by reference to such fair and objective
criteria (performance targets) relating to business results or such other
objective criteria as the Board shall determine over such period as the Board
shall specify; and

 

8.7.2         performance targets shall be set for performance units of one or
more employees (provided that an employee shall not be a member of more than
one performance unit).

 

8.8                           Where the Board decides to use Performance Allowances it shall, as
soon as reasonably practicable:

 

8.8.1         notify each employee participating in the Award of the performance
targets and measures which, under the Plan, shall be used to determine the
number or value of Free Shares awarded to him; and

 

8.8.2         notify all Qualifying Employees of any Participating Company, in
general terms, of the performance targets and measures to be used to determine
the number or value of Free Shares to be awarded to each Participant in the
Award

 

provided that the Board may exclude from such notice
any information the disclosure of which the Board reasonably considers would
prejudice commercial confidentiality.

 

8.9                           The Board shall determine the number of Free Shares (if any) to be
awarded to each Qualifying Employee by reference to performance using Method 1
(Rules 8.10 and 8.11)

 

9

 

or Method 2 (Rule 8.12).  The same method shall be used for all
Qualifying Employees for each Award.

 

Performance Allowances: method 1

 

8.10                     Subject to Rule 8.11, by this method:

 

8.10.1       at least 20% of Free Shares awarded in any performance period shall
be awarded without reference to performance;

 

8.10.2       the remaining Free Shares shall be awarded by reference to
performance; and

 

8.10.3       the highest Award made to an individual by reference to performance
in any period shall be no more than four times the highest Award to an
individual without reference to performance.

 

8.11                     If this method is used:

 

8.11.1       the Free Shares awarded without reference to performance (Rule 8.10.1)
shall be awarded on the same terms as mentioned in Rule 4; and

 

8.11.2       the Free Shares awarded by reference to performance (Rule 8.10.2)
need not be allocated on the same terms as mentioned in Rule 4.

 

Performance Allowances: method 2

 

8.12                     By this method:

 

8.12.1       some or all Free Shares shall be awarded by reference to
performance;

 

8.12.2       the Award of Free Shares to Qualifying Employees who are members of
the same performance unit shall be made on the same terms as mentioned in Rule 4;
and

 

8.12.3       Free Shares awarded for each performance unit shall be treated as
separate Awards.

 

Holding Period for Free Shares

 

8.13                     The Board shall, in relation to each Award Date, specify a Holding
Period throughout which a Participant shall be bound by the terms of the Free
Share Agreement.

 

8.14                     The Holding Period shall, in relation to each Award, be a specified
period of not less than three years nor more than five years (or such other
periods required by paragraph 31 of the Schedule from time to time), beginning
with the Award Date and shall be the same for all Participants who receive an
Award at the same time.  The Holding
Period shall not be increased in respect of Free Shares already awarded under
the Plan.

 

8.15                     A Participant may during the Holding Period direct the Trustees:

 

8.15.1       to accept an offer for any of his Free Shares if the acceptance or
agreement shall result in a new holding being equated with those shares for the
purposes of capital gains tax; or

 

10

 

8.15.2       to accept an offer of a Qualifying Corporate Bond (whether alone or
with other assets or cash or both) for his Free Shares if the offer forms part
of such a general offer as is mentioned in Rule 8.15.3; or

 

8.15.3       to accept an offer of cash, with or without other assets, for his
Free Shares if the offer forms part of a general offer which is made to holders
of shares of the same class as his shares, or to holders of shares in the same
company and which is made in the first instance on a condition such that if it
is satisfied the person making the offer shall have control of that company,
within the meaning of section 416 of the Taxes Act 1988; or

 

8.15.4       to agree to a transaction affecting his Free Shares or such of them
as are of a particular class, if the transaction would be entered into pursuant
to a compromise, arrangement or scheme applicable to or affecting:

 

(a)                     all of the ordinary share capital of the Company or, as the case may
be, all the shares of the class in question; or

 

(b)                    all the shares, or all the shares of the class in question, which
are held by a class of shareholders identified otherwise than by reference to
their employment or their participation in a plan approved under the Schedule.

 

11

 

PART B

 

9.                                 PARTNERSHIP SHARES

 

9.1                           The Board may at any time invite every Qualifying Employee to enter
into an agreement with the Company (a “Partnership Share Agreement”) in the
terms of the draft in Appendix B.

 

9.2                           Partnership Shares shall not be subject to any provision under which
they may be forfeit.

 

Maximum amount of deductions

 

9.3                           The amount of Partnership Share Money deducted from an employee’s
Salary shall not exceed £125 in any month (or such other maximum amount as may
for the time being be permitted by paragraph 36(1)(a) of the
Schedule).  If the Salary is not paid
monthly, such limit shall be calculated proportionately.

 

9.4                           The amount of Partnership Share Money deducted from a Participant’s
Salary over an Accumulation Period shall not exceed 10% (or such other maximum
amount as may for the time being be permitted by paragraph 36(1)(a) of the
Schedule) of the total of the payments of Salary made to the Participant over
that Accumulation Period or if there is no Accumulation Period, 10% (or such
other maximum amount as may for the time being be permitted by paragraph 36(1)(a) of
the Schedule) of the Salary payment from which the deduction is made.

 

9.5                           Any amount deducted in excess of that allowed by Rule 9.3 or
9.4 shall be paid over to the relevant employee, subject to both deduction of
income tax under PAYE and NICs, as soon as practicable.

 

Minimum amount of deductions

 

9.6                           The minimum amount to be deducted under the Partnership Share
Agreement in any month shall be the same in relation to all Partnership Share
Agreements entered into in response to invitations issued on the same
occasion.  It shall not be greater than
£10 (or such other minimum amount as may for the time being be permitted by
paragraph 37(2) of the Schedule).

 

Notice of possible effect of
deductions on benefit entitlement

 

9.7                           Every Partnership Share Agreement shall contain a notice under
paragraph 38 of the Schedule.

 

Restriction imposed on number of
Shares awarded

 

9.8                           The Board may specify the maximum number of Shares to be included in
an Award of Partnership Shares.

 

9.9                           The Partnership Share Agreement shall contain an undertaking by the
Company to notify each Qualifying Employee of any restriction on the number of
Shares to be included in an Award.

 

9.10                     The notification in Rule 9.9 shall be given:

 

12

 

9.10.1       if there
is no Accumulation Period, before the deduction of the Partnership Share Money
relating to the Award; and

 

9.10.2       if there
is an Accumulation Period, before the beginning of the Accumulation Period
relating to the Award.

 

Plan with no Accumulation Period

 

9.11       If there
is no Accumulation Period, the Trustees shall apply Partnership Share Money to
purchase Shares on behalf of the Qualifying Employee on the Acquisition
Date.  The number of Shares awarded to
each Participant shall be determined in accordance with the Market Value of the
Shares on that date.

 

Plan
with Accumulation Period

 

9.12       If there
is an Accumulation Period, the Trustees shall apply the Partnership Share Money
to acquire Shares on behalf of the Qualifying Employee on the Acquisition Date.

 

9.13       The number
of Shares acquired on behalf of each Participant shall be determined by
reference to the lower of:

 

9.13.1       the Market
Value of the Shares at the beginning of the Accumulation Period; and

 

9.13.2       the Market
Value of the Shares on the Acquisition Date.

 

9.14       If a
transaction occurs during an Accumulation Period which results in a new holding
of shares being equated for the purposes of capital gains tax with any of the
Shares to be acquired under the Partnership Share Agreement, the Participant
may agree that the Partnership Share Agreement shall have effect after the time
of that transaction as if it were an agreement for the purchase of shares
comprised in the new holding.

 

Surplus Partnership Share Money

 

9.15       Any
surplus Partnership Share Money remaining after the purchase of Shares by the
Trustees:

 

9.15.1       may, with the agreement of the Participant, be carried forward to
the next deduction (where there is no Accumulation Period) or to the next
Accumulation Period (where there is an Accumulation Period); and

 

9.15.2       in any other case, shall be paid over to the Participant, subject to
both deduction of income tax under PAYE and NICs, as soon as practicable.

 

Scaling down

 

9.16       If the
Company receives applications for Partnership Shares exceeding the Award
maximum determined in accordance with Rule 9.8 then the following steps
shall be taken in sequence until the excess is eliminated.

 

Step 1.      the excess
of the monthly deduction chosen by each applicant over the amount specified in
accordance with Rule 9.6 shall be reduced pro rata;

 

13

 

Step 2.     all monthly
deductions shall be reduced to the amount specified in accordance with Rule 9.6;

 

Step 3.     applications
shall be selected by lot, each based on a monthly deduction of the amount
specified in accordance with Rule 9.6.

 

Each
application shall be deemed to have been modified or withdrawn in accordance
with the foregoing provisions, and each employee who has applied for
Partnership Shares shall be notified of the change.

 

Withdrawal from Partnership Share
Agreement

 

9.17       An
employee may withdraw from a Partnership Share Agreement at any time by notice
in writing to the Company.  Unless a
later date is specified in the notice, such a notice shall take effect 30 days
after the Company receives it.  Any
Partnership Share Money then held on behalf of an employee shall be paid over
to that employee as soon as practicable. 
This payment shall be subject to income tax under PAYE and NICs.

 

Repayment
of Partnership Share Money on withdrawal of approval or Termination

 

9.18       If
approval to the Plan is withdrawn or a Plan Termination Notice is issued in
respect of the Plan, any Partnership Share Money held on behalf of employees
shall be repaid to them as soon as practicable, subject to deduction of income
tax under PAYE, and NICs.

 

14

 

PART C

 

10.         MATCHING SHARES

 

10.1       The
Partnership Share Agreement sets out the basis on which a Participant is entitled
to Matching Shares in accordance with this Part C of the Plan.

 

General requirements for Matching
Shares

 

10.2       Matching
Shares shall:

 

10.2.1       be Shares of the same class and carrying the same rights as the
Partnership Shares to which they relate;

 

10.2.2       subject to Rule 10.4, be awarded on the same day as the
Partnership Shares to which they relate are acquired on behalf of the
Participant; and

 

10.2.3       be awarded to all Participants on exactly the same basis.

 

Ratio of Matching Shares to
Partnership Shares

 

10.3       The
Partnership Share Agreement shall specify the ratio of Matching Shares to
Partnership Shares for the time being offered by the Company and that ratio
shall not exceed 2:1.  The Board may vary
the ratio before Partnership Shares are acquired.  Employees shall be notified of the terms of
any such variation before the Partnership Shares are awarded under the
Partnership Share Agreement.

 

10.4       If the
Partnership Shares on the day on which they are awarded under the Partnership
Share Agreement are not sufficient to produce a Matching Share, the match shall
be made when sufficient Partnership Shares have been acquired to allow at least
one Matching Share to be appropriated.

 

Holding Period for Matching
Shares

 

10.5       The Board
shall, in relation to each Award Date, specify a Holding Period throughout
which a Participant shall be bound by the terms of the Partnership Share
Agreement.

 

10.6       The
Holding Period shall, in relation to each Award, be a specified period of not
less than three years nor more than five years (or such other periods required
by paragraph 31 of the Schedule from time to time), beginning with the Award
Date and shall be the same for all Participants who receive an Award at the
same time.  The Holding Period shall not
be increased in respect of Matching Shares awarded under the Plan.

 

10.7       A
Participant may during the Holding Period direct the Trustees:

 

10.7.1       to accept an offer for any of his Matching Shares if the acceptance
or agreement shall result in a new holding being equated with those original
Shares for the purposes of capital gains tax; or

 

10.7.2       to accept an offer of a Qualifying Corporate Bond (whether alone or
with other assets or cash or both) for his Matching Shares if the offer forms
part of such a general offer as is mentioned in paragraph 10.7.3; or

 

15

 

10.7.3       to accept an offer of cash, with or without other assets, for his
Matching Shares if the offer forms part of a general offer which is made to
holders of shares of the same class as his Shares or to the holders of shares
in the same company, and which is made in the first instance on a condition
such that if it is satisfied the person making the offer shall have control of
that company, within the meaning of section 416 of the Taxes Act 1988; or

 

10.7.4       to agree to a transaction affecting his Matching Shares or such of
them as are of a particular class, if the transaction would be entered into
pursuant to a compromise, arrangement or scheme applicable to or affecting;

 

(a)       all of the ordinary share capital of the Company or, as the case may
be, all the shares of the class in question; or

 

(b)       all the shares, or all the shares of the class in question, which
are held by a class of shareholders identified otherwise than by reference to
their employment or their participation in a plan approved under the Schedule.

 

10.8       Matching
Shares shall be forfeited by a Participant and shall thereupon be held by the
Trustees subject to the Plan available for future awards of Free Shares or
Matching Shares for other eligible individuals if:

 

(i)              the
Participant withdraws the Partnership Shares in respect of which the Matching
Shares were awarded from the Plan in the Forfeiture Period; or

 

(ii)             the
Participant ceases to be in Relevant Employment at any time in the Forfeiture
Period other than

 

(a)       because of injury or
disability;

 

(b)       on being dismissed by reason of
redundancy;

 

(c)       by reason of a transfer to
which the Transfer of Undertaking (Prohibition of Employment) Regulations 1981
apply;

 

(d)       by reason of a change in
control or other circumstances ending the Associated Company status of the
company by which he is employed;

 

(e)       by reason of retirement on or
after he reaches Retirement Age; or

 

(f)        on his death.

 

16

 

PART D

 

11.         DIVIDEND SHARES

 

Reinvestment of cash dividends

 

11.1       The Free Share Agreement or Partnership Share Agreement, as
appropriate, shall set out the rights and obligations of Participants receiving
Dividend Shares under the Plan.

 

11.2       The Board may direct that any cash dividend in respect of Plan
Shares held on behalf of Participants may be applied in acquiring further Plan
Shares on their behalf.

 

11.3       Dividend Shares shall be Shares:

 

11.3.1       of the same class and carrying the same rights as the Shares in
respect of which the dividend is paid; and

 

11.3.2       which are not subject to any provision for forfeiture.

 

11.4       The Board may decide to:

 

11.4.1       apply all Participants’ dividends, up to the limit specified in Rule 11.6,
to acquire Dividend Shares;

 

11.4.2       to pay all dividends in cash to all Participants; or

 

11.4.3       to offer Participants the choice of either 11.4.1 or 11.4.2.

 

11.5       The Board may revoke any direction for reinvestment of cash
dividends.

 

11.6       The amount applied by the Trustees in acquiring Dividend Shares
shall not exceed £1,500 in each Tax Year (or such other limit specified from
time to time in paragraph 54(1) of the Schedule).  For the purposes of this Rule 11, the
Dividend Shares are those acquired under this Plan and those acquired under any
other plan approved under the Schedule. 
In exercising their powers in relation to the acquisition of Dividend
Shares the Trustees must treat Participants fairly and equally.

 

11.7       If the amounts received by the Trustees exceed the limit in Rule 11.6,
the balance shall be paid to the participant as soon as practicable.

 

11.8       The Trustees shall apply all the cash dividend to purchase Shares on
behalf of the Participant on the Acquisition Date.  The number of Dividend Shares purchased on
behalf of each Participant shall be determined by the Market Value of the
Shares on the Acquisition Date.

 

Certain amounts not reinvested to
be carried forward

 

11.9       Subject to Rule 11.7, any amount that is not reinvested:

 

11.9.1       because the amount of the cash dividend is insufficient to acquire a
Share; or

 

11.9.2       because there is an amount remaining after acquiring the Dividend
Shares;

 

17

 

may be retained by the Trustees and carried forward to
be added to the amount of the next cash dividend to be reinvested.

 

11.10     If, during
the period of three years beginning with the date on which the dividend was
paid:

 

11.10.1     it is not reinvested; or

 

11.10.2     the Participant ceases to be in Relevant Employment; or

 

11.10.3     a Plan Termination Notice is issued

 

the amount shall be repaid to the Participant as soon
as practicable.  On making such a
payment, the Participant shall be provided with the information specified in
section 234A(4) to (11) of the Taxes Act 1988 (information
relating to distributions to be provided by nominee) as if it were a
payment to which sub-section 4(b) of that section applies.

 

Holding Period for Dividend
Shares

 

11.11     The Holding
Period shall be a period of three years, beginning with the Acquisition Date.

 

11.12     A
Participant may during the Holding Period direct the Trustees:

 

11.12.1     to accept an offer for any of his Dividend Shares if the acceptance
or agreement shall result in a new holding being equated with those shares for
the purposes of capital gains tax; or

 

11.12.2     to accept an offer of a Qualifying Corporate Bond (whether alone or
with other assets or cash or both) for his Dividend Shares if the offer forms
part of such a general offer as is mentioned in paragraph 11.12.3; or

 

11.12.3     to accept an offer of cash, with our without other assets, for his
Dividend Shares if the offer forms part of a general offer which is made to
holders of shares of the same class as his shares or to holders of shares in
the same company, and which is made in the first instance on a condition such
that if it is satisfied the person making the offer shall have control of that
company, within the meaning of section 416 of the Taxes Act 1988; or

 

11.12.4     to agree to
a transaction affecting his Dividend Shares or such of them as are of a
particular class, if the transaction would be entered into pursuant to a
compromise, arrangement or scheme applicable to or affecting;

 

(a)       all of the ordinary share capital of the Company or, as the case may
be, all the shares of the class in question; or

 

(b)       all the shares, or all the shares of the class in question, which
are held by a class of shareholders identified otherwise than by reference to
their employment or their participation in a plan approved under the Schedule.

 

11.13     Where a
Participant is charged to tax in the event of their Dividend Shares ceasing to
be subject to the Plan, they shall be provided with the information specified
in section

 

18

 

234A(4) to (11) of the Taxes Act 1988 (information relating to distributions to be provided by nominee)
as if it were a payment to which sub-section 4(b) of that section applies.

 

19

 

PART E

 

12.         COMPANY RECONSTRUCTIONS

 

12.1       The
following provisions of this Rule 12 apply if there occurs in relation to
any of a Participant’s Plan Shares (referred to in this Rule 12 as “the
Original Holding”):

 

12.1.1       a transaction which results in a new holding (referred to in this Rule 12
as “the New Holding”) being equated with the Original Holding for the purposes
of capital gains tax; or

 

12.1.2       a transaction which would have that result but for the fact that
what would be the new holding consists of or includes a Qualifying Corporate
Bond.

 

12.2       If an
issue of shares of any of the following description (in respect of which a
charge to income tax arises) is made as part of a company reconstruction, those
shares shall be treated for the purposes of this Rule as not forming part
of the New Holding:

 

12.2.1       redeemable shares or securities issued as mentioned in section
209(2)(c) of the Taxes Act 1988;

 

12.2.2       share capital issued in circumstances such that section 210(1) of
the Taxes Act 1988 applies; or

 

12.2.3       share capital to which section 249 of the Taxes Act 1988 applies.

 

12.3       In this Rule 12:

 

“Corresponding
Shares” in relation to any New Shares, means the Shares in respect of which the
New Shares are issued or which the New Shares otherwise represent;

 

“New
Shares” means shares comprised in the New Holding which were issued in respect
of, or otherwise represent, shares comprised in the Original Holding.

 

12.4       Subject to
the following provisions of this Rule 12, references in this Plan to a
Participant’s Plan Shares shall be respectively construed, after the time of
the company reconstruction, as being or, as the case may be, as including
references to any New Shares.

 

12.5       For the
purposes of the Plan:

 

12.5.1       a company reconstruction shall be treated as not involving a
disposal of Shares comprised in the Original Holding; and

 

12.5.2       the date on which any New Shares are to be treated as having been
appropriated to or acquired on behalf of the Participant shall be that on which
Corresponding Shares were so appropriated or acquired.

 

12.6       In the
context of a New Holding, any reference in this Rule 12 to shares includes
securities and rights of any description which form part of the New Holding for
the purposes of Chapter II of Part IV of the Taxation of Chargeable Gains
Act 1992.

 

20

 

13.         RIGHTS ISSUES

 

13.1       Any shares
or securities allotted under clause 10 of the Deed shall be treated as Plan
Shares identical to the shares in respect of which the rights were conferred.  They shall be treated as if they were awarded
to or acquired on behalf of the Participant under the Plan in the same way and
at the same time as those shares.

 

13.2       Rule 12.1
does not apply:

 

13.2.1       to shares and securities allotted as the result of taking up a
rights issue where the funds to exercise those rights were obtained otherwise
than by virtue of the Trustees disposing of rights in accordance with this
rule; or

 

13.2.2       where the rights to a share issue attributed to Plan Shares are
different from the rights attributed to other ordinary shares of the company.

 

CLIFFORD CHANCE LLP

200 Aldersgate Street

London

EC1A
4JJ

 

21

 

APPENDIX A

 

The
Diageo 2001 Share Incentive Plan (“the Plan”): Free Share Agreement

 

PLEASE
USE BLOCK CAPITALS AND READ THE WHOLE OF THE AGREEMENT BEFORE SIGNING BELOW

 

This
agreement is between:

 

Participant
(“the Participant)

Name:

 

Home
Address:

 

Payroll
Number:

 

Company
(“the Company”)

 

Name:
Diageo plc

 

Registered
Address: 8 Henrietta Place, London, W1G 0NB

 

Registered
Number: 23307

 

This
agreement sets out the terms on which the Participant agrees to take part under
the terms of the Plan and is subject to the rules of the Plan.

The
definitions in the Plan Rules apply to this agreement:

PARTICIPANT

 

1.           I
agree to accept the Free Shares in Diageo plc awarded to me under the Plan.

2.           I
agree to leave the Free Shares in the hands of the Trustees, and not to assign,
charge or otherwise dispose of my beneficial interest in the shares for the
whole of the Holding Period of [insert time - not less
than 3 and not more than 5 years].

3.           I have
read this agreement and agree to be bound by it and by the rules of the
Plan.

 

COMPANY

 

4.           The
Company agrees to arrange for shares in Diageo plc to be awarded and bought for
me, according to the rules of the Plan.

5.           [Insert
the terms (or a cross reference to an explanation of the terms) on which the
Free Shares will be awarded].

 

 

	
  Signature:

  	
   

  	
   

  	
  Date:

  	
  /              /

  

 

22

 

Rights and Obligations

 

6.           I
agree that taking part in the Plan does not affect my rights, entitlements and
obligations under my contract of employment, and does not give me any rights or
additional rights to compensation or damages if my employment ceases.

7.           I may
ask the Trustees for my Free Shares at any time after the end of the Holding
Period, but I may have to pay income tax and National Insurance Contributions
when they are taken out of the Plan.

8.           I
agree to allow the Trustees to sell some or all of my shares to pay any income
tax and National Insurance Contributions in respect of my shares ceasing to be
subject to the Plan, unless I provide them in advance with sufficient funds to
pay these amounts.

9.           If
there is a rights issue, I agree to allow the Trustees to sell some of the
rights attached to my shares in the Plan, in order to fund the exercise of the
rights attached to other shares held by me in the Plan.

10.         I can at
any time withdraw from this agreement, by writing to my employer.

11.         I agree
that withdrawal from this agreement will not affect the terms on which I agreed
to accept any shares that have already been awarded to or bought for me under
the terms of the Plan.

12.         I
understand that my obligations during the Holding Period will end:

	
  (a)

  	
   

  	
  if I cease to be in Relevant Employment;

  
	
  (b)

  	
   

  	
  if the Company terminates the Plan in accordance
  with Clause 21 of the Deed and I have consented to the transfer of the Shares
  to me.

  

13.         I
understand that my obligations under the Holding Period are subject to:

	
  (a)

  	
   

  	
  the right of the Trustees to sell my shares to meet
  PAYE obligations;

  
	
  (b)

  	
   

  	
  the Trustees accepting at my direction an offer for
  my shares in accordance with the Plan.

  

 

23

 

APPENDIX
B

 

The
Diageo 2001 Share Incentive Plan (“the Plan”): Partnership Share Agreement

 

PLEASE
USE BLOCK CAPITALS AND READ THE WHOLE OF THE AGREEMENT BEFORE SIGNING BELOW

 

This agreement is between:

 

Participant (“the Participant)

Name:

 

Home Address:

 

Payroll Number:

 

Company (“the Company”)

 

Name:
Diageo plc

 

Registered
Address: 8 Henrietta Place, London, W1G 0NB

 

Registered Number: 23307

 

Trustees (“the Trustees”)

 

Name:

 

Registered Address [if any]:

 

This agreement sets out the terms on which
the Participant agrees to buy shares under the terms of the Plan and is subject
to the rules of the Plan.  The
definitions in the Plan Rules apply to this agreement:

 

NOTICE TO PARTICIPANT ABOUT POSSIBLE EFFECT
ON BENEFITS

 

Deductions from your pay to buy Partnership Shares
under this agreement may affect your entitlement to or the level of, some
contributory social security benefits, statutory maternity pay and statutory
sick pay.

 

They may also have a similar effect in respect of some
contributory social security benefit paid to your wife or husband.

 

With this agreement you should have been given
information on the effect of deductions from your pay to buy Partnership Shares
on entitlement to social security benefits, statutory sick pay and statutory
maternity pay.  The effect is
particularly significant if your earnings are brought below the lower earnings
limit for National Insurance purposes, and is explained in the information: it
is therefore important that you read it. 
If you have not been given a copy, ask your employer for it.  Otherwise a copy may be obtained from any
office of the Inland Revenue, the Department of Social Security, or, in
Northern Ireland, the Department for Social Development.  You should take the information you have been
given into account in deciding whether to buy Partnership Shares.

 

24

 

	
  PARTICIPANT

  	
  £   *

  

 

1.           I
agree to allow my employer to deduct the following amount per [insert period] from my Salary:

2.           I
agree that these deductions will be used to buy Partnership Shares in Diageo
plc for me.

3.           I
agree to accept Matching Shares in Diageo plc awarded to me under the Plan and
leave them in the hands of the Trustees, and not to assign, charge or otherwise
dispose of my beneficial interest in the shares for the whole of the Holding
Period of three years.

4.           I
understand that shares may fall in value as well as rise.

5.           I have
read this agreement and agree to be bound by it and by the rules of the
Plan.

 

COMPANY

 

6.           The
Company agrees to arrange for shares in Diageo plc to be bought for me,
according to the rules of the Plan.

7.           The
Company agrees to provide [insert number]
Matching Share(s) for every [insert number]
Partnership Share(s).

8.           The
Company undertakes to notify me of any restriction on the number of Partnership
Shares available in the (or each) Award.

 

TRUSTEES

 

9.           The
Trustees agree to keep my Salary deductions in [insert name
of bank/building society] until they are used to buy shares in
Diageo plc for me.

 

 

	
  Signature:

  	
   

  	
   

  	
  Date:

  	
  /              /

  

 

*            Insert amount between [ ] and [ ]
[per month] and not more than 10% of salary.

 

Rights
and Obligations

 

1.           I
agree that taking part in the Plan does not affect my rights, entitlements and
obligations under my contract of employment, and does not give me any rights or
additional rights to compensation or damages if my employment ceases.

2.           I may
stop the deductions at any time, or begin them again, by writing to my
employer, but I may not make up any amounts missed when deductions were
stopped.

3.           I
agree that the deductions from my salary, or the number of shares that I
receive may be scaled down if the limit on the number of shares set by the
Company for this Award is exceeded.

4.           I may
ask the Trustees for my Partnership Shares at any time, but I may have to pay
income tax and National Insurance Contributions when they are taken out of the
Plan.

5.           I
agree to allow the Trustees to sell some or all of my shares to pay any income
tax and National Insurance Contributions in respect of my shares ceasing to be
subject to the Plan, unless I provide them in advance with sufficient funds to
pay these amounts.

6.           I
agree that any deductions not used to buy shares will at the discretion of the
Trustees be repaid to me after the deduction of any necessary income tax and/or
National Insurance Contributions, or will be carried forward and added to the
next deduction.  I further agree that if
I cease to be in Relevant Employment and the total deductions held in the Plan
which have not been used to buy shares equal 50 pence or less that amount shall
be paid on my behalf to the Trustee and the Trustee shall give the deductions
to a charity chosen

 

25

 

at the discretion of the Trustee but if the
total of such deductions exceeds 50 pence the money shall be returned to me.

7.           If
there is a rights issue, I agree to allow the Trustees to sell some of the
rights attached to my shares in the Plan, in order to fund the exercise of the
rights attached to other shares held by me in the Plan.

8.           I can
at any time withdraw from this agreement by writing to my employer.  Any unused deductions will be returned to me
after the deduction of any necessary income tax and/or National Insurance
Contributions.

9.           I
agree that withdrawal from this agreement will not affect the terms on which I
agreed to buy shares already held for me under the Plan.

 

Matching Shares

 

10.         The
ratio of Matching Shares to Partnership Shares is 1 Matching Share for every 2
Partnership Shares and may be varied by the Company.

11.         If the
ratio varies, the Company will notify me before the Partnership Shares are
bought for me.

12.         I will
lose my Matching Shares if:

·      I cease to
be in Relevant Employment, or

·      I withdraw
the Partnership Shares in respect of which the Matching Shares were awarded

within
3 years from the date of the Award, unless the employment ceases for one of the
following reasons -

	
  (a)

  	
   

  	
  injury or disability

  
	
  (b)

  	
   

  	
  redundancy

  
	
  (c)

  	
   

  	
  transfer of employment to which the Transfer of
  Undertaking (Protection of Employment) Regulations 1981 apply

  
	
  (d)

  	
   

  	
  change of control or other circumstances ending the
  Associated Company status of the company by which I am employed

  
	
  (e)

  	
   

  	
  retirement on or after reaching Retirement Age

  
	
  (f)

  	
   

  	
  death.

  

 

Partnership Share Money held by Trustees

 

13.         The
Trustees are under no obligation to keep the deductions in an interest-bearing
account, but if they do, they will pay the interest to me.

 

Holding Period: Matching Shares

 

14.         I
understand that my obligations during the Holding Period will end:

	
  (a)

  	
   

  	
  if I cease to be in Relevant Employment, and this
  may lead to forfeiture of the Matching Shares;

  
	
  (b)

  	
   

  	
  if the Company terminates the Plan in accordance
  with Clause 21 of the Deed and I have consented to the transfer of the Shares
  to me.

  

15.         I
understand that my obligations under the Holding Period are subject to:

	
  (a)

  	
   

  	
  the right of the Trustees to sell my shares to meet
  PAYE obligations;

  
	
  (b)

  	
   

  	
  the Trustees accepting at my direction an offer for
  my shares in accordance with the Plan.

  

 

26

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]