Document:

EX-4.1

 

Exhibit 4.1

	Reference	 	2625-10

InterContinental Hotels Group PLC

ORDINARY SHARES OF 10 PENCE EACH

	 	 	 	 	 
	 

	 	5th
PROOF
	 	THE ATTACHED CERTIFICATE IS VALUABLE.
	 

	 	103214 SS
	 	PLEASE KEEP IT IN A SAFE PLACE.
	 
	 	 	 	 
	 

	 	 	 	Should you need to notify the Registrar of a change of address, please complete the form on
the reverse of this counterfoil and send it to Lloyds TSB Registrars. In the case of a joint
holding, the change of address of the first-named shareholder only should be notified and the form
should be signed by the first-named shareholder only.

 Please do NOT return your share certificate
with the change of address form.

									
	CERTIFICATE No.
	 	ACCOUNT No.
	 	TRANSFER No.
	 	DATE
	 	NUMBER OF ORDINARY SHARES

Incorporated and registered in England and Wales under the Companies Acts 1985 and 1989

Registered No. 5134420

ORDINARY SHARES OF 10 PENCE EACH

This is to Certify that the undermentioned is/are the registered holder(s) of Ordinary Shares
of 10 pence each fully paid in InterContinental Hotels Group PLC as shown herein subject to the
Memorandum and Articles of Association of the Company.

NAME(S) OF HOLDER(S)

Given under the Securities Seal, of the Company

NUMBER OF ORDINARY SHARES

Orchestra 103214

This certificate should be
kept in a safe place. It will be needed when you sell or transfer the shares.

No transfer of any portion of
this holding will be registered unless this certificate is deposited at the office of the Registrar.

The Registrar’s address
is Lloyds TSB Registrars, The Causeway, Worthing, West Sussex BN99 6DA

(Telephone 0870 600 3957, overseas callers should call +44 121415 7034) and the relevant reference

for correspondence is No. 2625.

There is now a range of shareholder information on line. You can check your holding and find

practical help on transferring shares or updating your details at www.shareview.co.uk.

 

 

 

	 		 	 	 	 	 	 	 
	 		 	CHANGE OF ADDRESS - Please use BLOCK LETTERS	 
	 		 	To: The Registrar,
Intercontinental Hotels Group PLC, Lloyds TSB Registrars, The Causeway,
Worthing, West Sussex BN99 6DA.	 
	 	
	 		 	Name(s) of shareholders) - Please fill in the full name(s) of the shareholder($) as shown in the
certificate.	 
	 		 	2625	 
	 
		 	 	 	 	 	 	 
	 		 
	1st or Sole Holder
		 	 	 	 	 	 	 
	 		 	 	 
	2nd Holder (if any)
		 	 	 	 	 	 	 
	 		 	 	 
	3rd Holder (if any)
		 	 	 	 	 	 	 
	 		 	 	 
	4th Holder (if any)
		 	 	 	 	 	 	 
	 		 	 	 
	 		 
	 
		 	 	 	 	 	 	 
	OLD ADDRESS
		 	 	 	 	 	 	 
	 		 
	 		 	 	 
	Please change the

		 	 	 	 	 	 	 
	address in the  
		 	 	 	 	 	 	 
	 		 	 	 
	Register of
		 	 	 	 	 	 	 
	 		 	 	 
	Members from:
		 	 	 	 	 	 	 
	 		 	 	 
	 		 
	 
		 	 	 	 	 	 	 
	to:
		 	 	 	 	 	 	 
	 		 
	 		 	 	 
	NEW ADDRESS
		 	 	 	 	 	 	 
	 		 	 	 
	Please fill in full
		 	 	 	 	 	 	 
	 		 	 	 
	details including

		 	 	 	 	 	 	 
	
postcode:
		 	 	 	 	 	 	 
	 		 	 	 
	 		 
	 
		 	 	 	 	 	 	 
	PLEASE SIGN HERE

	 	 	 	DATE	 	 	 
	 		 	 	 	 	 	 	 

	NOTES	 	(i)	 	The above information will be used to amend any InterContinental Hotels Group PLC
share accounts in which your name appears as the first or sole
holder and which contains the same old address, including any accounts with designations.
	 
	 	 	(ii)	 	If the change affects holdings of shares in other companies
for which Lloyds TSB Registrars
acts as Registrar, please give full details on a separate piece of paper.EX-4.2

 

Exhibit 4.2

NEW INTERCONTINENTAL HOTELS GROUP PLC

RULES OF THE NEW INTERCONTINENTAL HOTELS GROUP

EXECUTIVE SHARE OPTION PLAN

	 	 	 
	Shareholders’ Approval:

	 	15 June 2005
	Directors’ Adoption:

	 	15 June 2005
	IR Ref:

	 	X22982
	Expiry Date:

	 	15 June 2015
	Revenue Approval:
	 	 

	 	 	 
	Linklaters
	 	 
	 
	One Silk Street
	 	 
	London EC2Y 8HQ
	 	 
	 
	 	 
	Telephone (44-20) 7456 2000
	 	 
	Facsimile (44-20) 7456 2222
	 	 
	 
	 	 
	Ref A Croft
	 	 

 

 

Table of Contents

	 	 	 	 	 	 	 
	Contents	 	Page
	1

	 	Definitions
	 	 	1	 
	2

	 	Grant of Options
	 	 	2	 
	3

	 	Option Price
	 	 	4	 
	4

	 	Individual limit
	 	 	5	 
	5

	 	Plan limits
	 	 	6	 
	6

	 	Variations in share capital
	 	 	6	 
	7

	 	Exercise and lapse - general rules
	 	 	7	 
	8

	 	Exercise and lapse - exceptions to the general rules
	 	 	7	 
	9

	 	Exchange of Options
	 	 	12	 
	10

	 	Exercise of Options
	 	 	13	 
	11

	 	General
	 	 	15	 
	12

	 	Changing the Plan
	 	 	17	 
	13

	 	Governing law and jurisdiction
	 	 	19	 
	Schedule 1 The InterContinental Hotels Group Executive Approved Share Option Plan	 	 	20	 
	 
	 	 	 	 	 	 

     
 

i

 

Rules of the New InterContinental Hotels Group Executive Share Option Plan

	1	 	Definitions
	 
	1.1	 	Meanings of words used

In these Rules:

“Annual Salary” means basic annual salary excluding all payments additional to basic salary
(for example mortgage support, expatriate allowance, etc.);

“Business Day” means a day on which the London Stock Exchange (or, if relevant and if the
Directors determine, any stock exchange nominated by the Directors on which the Shares are
traded) is open for the transaction of business;

“Company” means New InterContinental Hotels Group PLC (with registered number 5134420);

“Condition” means any conditions imposed under Rule 2.3;

“Control” has the meaning given to it by Section 840 of the Taxes Act;

“Date of Grant” means the date which the Directors set for the grant of an Option;

“Directors” means, subject to Rule 8.7, the board of directors of the Company or a duly
authorised committee;

“Eligible Employee” means any person who:

	 	(i)	 	is an executive director or employee of a Participating Company; and
	 
	 	(ii)	 	unless decided otherwise by the Directors, is not at the Date of Grant within
24 months of his anticipated leaving date;

“Financial Year” means the financial year of the Company;

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

“London Stock Exchange” means London Stock Exchange plc;

“Member of the Group” means:

	 	(i)	 	the Company; and
	 
	 	(ii)	 	its Subsidiaries from time to time; and
	 
	 	(iii)	 	any other company which is associated with the Company and is so designated by
the Directors;

“Model Code” means the UK Listing Authority Model Code for transactions in securities by
directors, certain employees and persons connected with them;

“Option” means a right to acquire Shares granted under the Plan which is subject to the
Rules;

“Optionholder” means a person holding an Option or his personal representatives;

     
 

1

 

“Option Period” means a period starting on the Date of Grant of an Option and ending at the
end of the day before the 10th anniversary of the Date of Grant, or such shorter period as
may be specified on the Date of Grant;

“Option Price” means the amount payable for each Share on the exercise of an Option
calculated as described in Rule 3;

“Participating Companies” means:

	 	(i)	 	the Company; and
	 
	 	(ii)	 	any Subsidiary and any other company which in both cases is so designated by
the Directors;

“Plan” means this plan known as “The InterContinental Hotels Group Executive Share Option
Plan” as changed from time to time;

“PRSP” means the InterContinental Hotels Group Performance Restricted Share Plan as changed
from time to time;

“Regulatory Information Service” means a service listed in schedule 12 to the UK Listing
Authority Listing Rules;

“Rolled Over Options” means Options granted under the Plan in exchange for options granted
under the Six Continents Plc Executive Share Option Scheme 1985 or the Six Continents Plc
Executive Share Option Scheme 1995;

“Rules” means these rules of the Plan as changed from time to time;

“STDIP” means the InterContinental Hotels Group Short Term Deferred Incentive Plan as
amended from time to time;

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

“SIPs” means the InterContinental Hotels Group Share Incentive Plan and the Britvic Share
Incentive Plan as amended from time to time;

“Subsidiary” means a company which is a subsidiary of the Company within the meaning of
Section 736 of the Companies Act 1985;

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

	2	 	Grant of Options
	 
	2.1	 	Grant of Options

	 	2.1.1	 	The Directors may resolve to grant to any Eligible Employee an Option to
acquire such number of Shares as the Directors may determine at the Option Price. The
Company will execute a deed on the grant of an Option.
	 
	 	2.1.2	 	Unless the Directors decide otherwise in any particular case, Options must
not be granted to an Eligible Employee who has given or received notice of termination
of employment with a Participating Company whether or not such termination is lawful.
	 
	 	2.1.3	 	The Directors may also resolve to grant a Rolled Over Option, subject to
the terms of the Rules as modified by any special terms that they may set, to any
person who

     
 

2

 

  is an employee or former employee of Six Continents Plc or any of its Subsidiaries
or former Subsidiaries.

	 2.2	 	 Time when Options may be granted

	 	2.2.1	 	Options may only be granted within 42 days starting on any of the following:

	 	(i)	 	the date of adoption of the Plan;
	 
	 	(ii)	 	the day on which the Plan is formally approved by the Inland
Revenue;
	 
	 	(iii)	 	the day after the announcement of the Company’s results
through a Regulatory Information Service for any period;
	 
	 	(iv)	 	any day on which the Directors resolve that exceptional
circumstances exist which justify the grant of Options;
	 
	 	(v)	 	any day on which changes to the legislation or regulations
affecting share option plans are announced, effected or made; or
	 
	 	(vi)	 	the day on which Shares are first admitted to the UK Listing
Authority Official List and traded on the London Stock Exchange or admitted to
any other stock exchange nominated by the Directors.

	 	2.2.2	 	If the Directors do not grant any Options due to restrictions imposed by
statute, order, regulation or Government directive, or by any code adopted by the
Company based on the Model Code, the Directors may grant Options within 42 days after
the lifting of such restrictions.
	 
	 	2.2.3	 	Options may be granted at any time between the adoption of the Plan and the
10th anniversary of that date.
	 
	 	2.2.4	 	The Directors may not grant Options on any day if the Option Price would be
calculated as described in Rule 3.1 using any days immediately before the announcement
of results through a Regulatory Information Service.

	2.3	 	Conditions
	 
	 	 	When granting an Option, the Directors may make its exercise conditional on the
satisfaction of certain conditions. The Condition must be objective and specified at the
Date of Grant and may provide that an Option will lapse if a Condition is not satisfied. The
Directors may waive or change the Condition in accordance with their terms or if anything
happens which causes the Directors reasonably to consider that:

	 	2.3.1	 	a changed Condition would be a fairer measure of performance, and would be
no more difficult to satisfy; or
	 
	 	2.3.2	 	the Condition should be waived.

	 2.4	 	 Option certificates

	 	2.4.1	 	The Directors will send to each Optionholder an option certificate on or as
soon as practicable after the Date of Grant. The certificate will either be the deed
referred to in Rule 2.1 or a statement. The Directors will set the form of the
certificate, but the certificate must be consistent with these Rules.
	 
	 	2.4.2	 	If any option certificate is lost or damaged the Directors may replace it
on such conditions as they wish to set.

     
 

3

 

	2.5	 	No payment
	 
	 	 	Optionholders are not required to pay for the grant of any Option.
	 
	2.6	 	Disclaimer of Option
	 
	 	 	Any Optionholder may disclaim all or part of his Option within 30 days after the Date
of Grant by notice in writing to the Company. If this happens, the Option will be deemed
never to have been granted under the Plan. Optionholders are not required to pay for the
disclaimer.
	 
	2.7	 	Disposal restrictions
	 
	 	 	An Optionholder may not transfer, assign or otherwise dispose of an Option or any
rights in respect of it. This Rule 2.7 does not apply to:

	 	2.7.1	 	the transmission of an Option on the death of an Optionholder to his
personal representatives; or
	 
	 	2.7.2	 	the assignment of an Option, with the prior consent of the Directors,
subject to any terms and conditions the Directors impose.

	2.8	 	Administrative errors
	 
	 	 	If the Directors try to grant an Option which is inconsistent with Rule 4 (Individual
limit) or Rule 5 (Plan limits), the Option will be limited and will take effect from the
Date of Grant on a basis consistent with those Rules.
	 
	3	 	Option Price
	 
	3.1	 	Setting the Price
	 
	 	 	The Directors will set the Option Price and state it on the Date of Grant.
	 
	 	 	The Option Price will be:

	 	3.1.1	 	not less than the Market Value of a Share on the Date of Grant; and
	 
	 	3.1.2	 	if the Shares are to be subscribed, not less than the nominal value of a Share.

However, Rule 3.1.1 will not apply to Options granted in exchange for options granted under
the Six Continents Executive Share Option Scheme 1985 or the Six Continents Executive Share
Option Scheme 1995.

	3.2	 	Market Value
	 
	 	 	“Market Value” on any particular day means:

	 	3.2.1	 	where Shares of the same class are admitted to the Official List of the UK
Listing Authority and traded on the London Stock Exchange:

	 	(i)	 	their middle market quotation on the immediately preceding
Business Day; or
	 
	 	(ii)	 	if the Directors so decide, the average of the middle market
quotation on the 3 immediately preceding Business Days.

The middle market quotation is taken from the Daily Official List of the London
Stock Exchange.

     
 

4

 

	 	3.2.2	 	Where Shares of the same class are not admitted to the Official List of the
UK Listing Authority, the market value of a Share calculated as described in Part VIII
of the Taxation of Chargeable Gains Act 1992.

	4	 	 Individual limit
	 
	4.1	 	 Market value limit
	 
	 	 	 The conditions in Rules 4.1.1 and 4.1.2 must both be satisfied.

	 	4.1.1	 	Subject to Rules 4.1.4 and 4.1.5, an Option must not be granted to an
Eligible Employee if it would at the proposed Date of Grant cause the aggregate of the
amounts payable on the exercise of Options granted under the Plan in any financial year
to exceed:

	 	(i)	 	in the case of an Eligible Employee who is a director of the
Company, 3 times his Annual Salary as at the Date of Grant; and
	 
	 	(ii)	 	in the case of any other Eligible Employee, 4 times his Annual
Salary as at the Date of Grant.

	 	4.1.2	 	Subject to Rules 4.1.4 and 4.1.5 in any financial year no Eligible Employee
shall be granted an Option which would at the proposed Date of Grant cause the
aggregate of:

	 	(i)	 	20% of the market value of the Shares over which an Option is
granted under the Plan; and
	 
	 	(ii)	 	33% of the market value of the Shares over which an award is
made under the PRSP

	 	 	 	to exceed 130% of the Eligible Employee’s Annual Salary as at the Date of Grant.
	 
	 	4.1.3	 	For the purpose of Rule 4.1.2 the market value of a Share shall be
calculated as follows:

	 	(i)	 	in respect of Options granted under the Plan, the market value
shall be the Option Price of the relevant Shares on the date when each Option
was granted; and
	 
	 	(ii)	 	in respect of awards under the PRSP, the market value shall be
the middle market quotation on the Business Day immediately preceding the
conditional award date award under the PRSP.

	 	4.1.4	 	No account shall be taken of Options or awards under the PRSP which have
been released or have lapsed without being exercised.
	 
	 	4.1.5	 	The limits in this Rule 4.1 may be exceeded if the Directors determine that
exceptional circumstances make it desirable that Options should be granted in excess of
those limits.

	4.2	 	 Remuneration
	 
	 	 	Remuneration payable in a currency other than Pounds Sterling will be converted into
Pounds Sterling at the average of the spot buying and selling rates with the relevant
currency in comparable amounts by any clearing bank chosen by the Directors on a date chosen
by the Directors.

     
 

5

 

	5	 	Plan limits
	 
	5.1	 	10 per cent. 10 year limit
	 
	 	 	The number of Shares which may be allocated under the Plan on any day must not exceed
10 per cent. of the ordinary share capital of the Company in issue immediately before that
day, when added to the total number of Shares which have been allocated in the previous 10
years under the Plan and any other employee share plan operated by the Company.
	 
	5.2	 	5 per cent. 10 year limit
	 
	 	 	The number of Shares which may be allocated under the Plan on any day must not exceed 5
per cent. of the ordinary share capital of the Company in issue immediately before that day
when added to the total number of Shares which have been allocated in the previous 10 years
under the Plan and any other discretionary share plan operated by the Company.
	 
	5.3	 	1.5 per cent. 1 year limit
	 
	 	 	The number of Shares which may be allocated under the Plan on any day must not exceed
1.5 per cent. of the ordinary share capital of the Company in issue immediately before that
day when added to the total number of Shares which have been allocated in the previous 12
months under the Plan, the STDIP and the PRSP.
	 
	5.4	 	Exclusions
	 
	 	 	Where the right to acquire Shares is released or lapses without being exercised, the
Shares concerned are ignored when calculating the limits in this Rule 5.
	 
	 	 	The following are also ignored:

	 	5.4.1	 	when calculating the limits in Rules 5.1, 5.2 and 5.3 Shares awarded as
partnership shares under the SIPs; and
	 
	 	5.4.2	 	when calculating the limit in Rule 5.3 rights to Shares issued in respect
of options granted in exchange for options granted under the Six Continents Executive
Share Option Scheme 1985 and the Six Continents Executive Share Option Scheme 1995.

	5.5	 	Meaning of allocate
	 
	 	 	“Allocate” means granting an option or other right to acquire unissued Shares, or if
there is no such grant, the issue and allotment of Shares.
	 
	6	 	Variations in share capital
	 
	6.1	 	Adjustment of Options
	 
	 	 	If there is a variation in the equity share capital of the Company, including a
capitalisation or rights issue, sub-division, consolidation or reduction of share capital or
a demerger (in whatever form) or exempt distribution by virtue of Section 213 of the Taxes
Act or other distribution in specie or a special dividend:

	 	 6.1.1	 	the number of Shares comprised in each Option; or
	 
	 	 6.1.2	 	the Option Price; or
	 
	 	 6.1.3	 	both

     
 

6

 

may be adjusted in any way (including retrospective adjustments) which the Directors
consider appropriate.

	6.2	 	Nominal value

	 	 6.2.1	 	The Option Price of an Option to acquire existing Shares may be adjusted to
a price less than nominal value.
	 
	 	 6.2.2	 	The Option Price of an Option to subscribe for Shares may be adjusted to a
price less than nominal value only if the Directors resolve to capitalise the reserves
of the Company, subject to any necessary conditions. This capitalisation will be of an
amount equal to the difference between the adjusted Option Price payable for the Shares
to be issued on exercise, and the nominal value of such Shares on the date of allotment
of the Shares. If, at the time of exercise, the Directors do not resolve to capitalise
the reserves of the Company for this purpose then the adjustment under this Rule 6.2
will be deemed not to have taken place.

	6.3	 	Notice
	 
	 	 	The Directors may notify Optionholders of any adjustment made under this Rule 6.
	 
	7	 	Exercise and lapse - general rules
	 
	7.1	 	Exercise
	 
	 	 	Subject to Rule 7.2 (Lapse) and Rule 8 (Exercise and lapse — exceptions to the general
rules) an Option can only be exercised:

	 	 7.1.1	 	on or after the third anniversary of its Date of Grant (or such other date
as the Directors may specify on the Date of Grant);
	 
	 	 7.1.2	 	to the extent allowed by the Condition; and
	 
	 	 7.1.3	 	if not prevented under Rule 8.11 (Mergers and reorganisations) or by a
decision of the Directors under any of Rules 8.3 (Takeovers), 8.4 (Section 429 notice)
or 8.5 (Company reconstructions).

	7.2	 	Lapse
	 
	 	 	Unless Rule 8 applies, an Option will lapse on the earliest of:

	 	 7.2.1	 	the date the Optionholder ceases to be a director or employee of a Member
of the Group;
	 
	 	 7.2.2	 	if the Directors so decide within 14 days of the date that the relevant
Optionholder gives or receives notice, the date on which the Optionholder gives or
receives notice of termination of his employment with any Member of the Group whether
or not such termination is lawful;
	 
	 	 7.2.3	 	any date specified in any Condition;
	 
	 	 7.2.4	 	the expiry of the Option Period.

	8	 	Exercise and lapse - exceptions to the general rules
	 
	 	 	This Rule 8 sets out exceptions to the general rules of exercise and lapse in Rule 7.

     
 

7

 

	8.1	 	Cessation of employment

	 	8.1.1	 	If an Optionholder ceases to be a director or an employee of any Member of
the Group for any of the reasons set out below, then his Options will not lapse and he
may exercise them for a period of three and a half years from the date of cessation of
employment unless the Company decides otherwise. The Condition must be satisfied before
exercise of Options under this Rule 8.1.1.
	 
	 	 	 	The reasons are:

	 	(i)	 	ill-health, injury, disability;
	 
	 	(ii)	 	redundancy;
	 
	 	(iii)	 	retirement in accordance with the terms of an Optionholder’s
contract of employment;
	 
	 	(iv)	 	early retirement by agreement with the Optionholder’s employer;
	 
	 	(v)	 	the Optionholder’s employing company ceasing to be under the
Control of the Company;
	 
	 	(vi)	 	a transfer of the undertaking, or the part of the undertaking,
in which the Optionholder works to a person which is neither under the Control
of the Company nor a Member of the Group.

	 	8.1.2	 	The Directors may allow an Optionholder who ceases to be a director or an
employee of any Member of the Group for any other reason to exercise his Options in
full or in part during any period specified by the Directors and subject to any
conditions. The Condition must be satisfied before exercise of Options under this Rule
8.1.2.
	 
	 	8.1.3	 	The Directors must exercise any discretion provided for in this Rule 8.1
within 90 days after cessation of the relevant Optionholder’s employment.
	 
	 	8.1.4	 	To the extent that any Option exercisable under this Rule 8.1 is not
exercised within the period specified, it will lapse at the end of that period.
	 
	 	8.1.5	 	If an Optionholder ceases to be an employee of any Member of the Group for
reasons that would entitle his employer to dismiss him summarily under his contract of
employment, all his Options shall lapse upon such cessation.
	 
	 	8.1.6	 	An Optionholder will not be treated as ceasing to be an employee of a
Member of the Group until he has ceased to be an employee of any Member of the Group.

	 	8.2	 	Death
	 
	 	 	 	If an Optionholder dies, his Options may be exercised for a period of 12 months from
the date of his death by his personal representatives to the extent that the Condition is
satisfied up to the date of death. To the extent that any Option exercisable under this Rule
8.2 is not so exercised, it will lapse. Nothing in this Rule 8.2 extends the Option Period.
	 
	 	8.3	 	Takeovers
	 
	 	 	 	This Rule does not apply if Options are to be replaced in accordance with Rule 8.11
(Mergers and reorganisations).

     
 

8

 

This Rule applies where a person (or a group of persons acting in concert) obtains Control
of the Company as a result of making an offer to acquire shares.

When this Rule applies Options may be exercised, subject to the satisfaction of the
Condition, within the 6 month period after the person making the offer has obtained Control
of the Company.

The Options will cease to be exercisable at the end of the 6 month period. Options not
exercised or exchanged (under Rule 9 (Exchange of Options)) will lapse at the end of the
period specified in Rule 9.2 (Exchange).

At any time before the day on which Control is obtained, the Directors may decide that no
Options may be exercised. This decision will cease to have effect if an offer to exchange
Options (“exchange offer”) is not made in accordance with Rule 9 within 14 days of the date
on which Control is obtained.

	8.4	 	Section 429 notice
	 
	 	 	This Rule does not apply if Options are to be replaced in accordance with Rule 8.11
(Mergers and reorganisations).
	 
	 	 	This Rule applies if a person (or a group of persons acting in concert) serves a notice to
acquire Shares under section 429 of the Companies Act 1985 or any other equivalent local
legislation (a “section 429 notice”). Options may be exercised, subject to the satisfaction
of the Condition, up to the end of the shorter of:

	 	 8.4.1	 	the period during which that person is entitled and bound to acquire the
Shares to which the section 429 notice relates; and
	 
	 	 8.4.2	 	the period during which that person is entitled to serve a section 429
notice.

Options not exercised or exchanged (under Rule 9 (Exchange of Options)) will lapse at the
end of the period specified in Rule 9.2 (Exchange).

At any time before the day on which a section 429 notice is served, the Directors may decide
that no Options may be exercised. This decision will cease to have effect if an offer to
exchange Options (“exchange offer”) is not made in accordance with Rule 9 within 14 days of
the date on which a section 429 notice is served.

	8.5	 	Company reconstructions
	 
	 	 	This Rule does not apply if Options are to be replaced in accordance with Rule 8.11
(Mergers and reorganisations).
	 
	 	 	This Rule applies when, under section 425 of the Companies Act 1985 or any other equivalent
local legislation:

	 	 8.5.1	 	a court sanctions a compromise or arrangement in connection with the
acquisition of Shares; or
	 
	 	 8.5.2	 	there is any other local equivalent to that sanction procedure.

When this Rule applies, Options may be exercised, subject to the satisfaction of the
Condition, within 6 months after the date of the sanction. Any Option not so exercised will
lapse at the end of that period.

     
 

9

 

However, the Directors may decide that no Options may be exercised. They may make this
decision not later than the date of the sanction and only if an exchange offer is proposed
to be made in accordance with Rule 9.

	8.6	 	Demergers and other significant distributions
	 
	 	 	This Rule does not apply if Options are to be replaced in accordance with Rule 8.11
(Mergers and reorganisations).
	 
	 	 	If the Directors become aware that the Company is or is expected to be affected by any
demerger, dividend in specie, special dividend or other transaction not falling within any
of Rules 8.3 (Takeovers), 8.4 (Section 429 notice) and 8.5 (Company reconstructions) which,
in the opinion of the Directors, would affect the current or future value of any Option, the
Directors, may, acting fairly, reasonably and objectively, in their discretion, allow some
or all Options to be exercised, subject to the satisfaction of the Condition. The Directors
will specify the period of exercise of such Options, whether the Options will lapse at the
end of the period and whether exercise is subject to satisfaction of any of the Condition.
	 
	 	 	The Directors will notify any Optionholder who is affected by the Directors exercising their
discretion under this Rule.
	 
	8.7	 	Directors
	 
	 	 	In Rules 8.3, 8.4, 8.5, 8.6 and 9.3.4, “Directors” means those people who were
directors of the Company immediately before the relevant event.
	 
	8.8	 	Winding-up
	 
	 	 	This Rule does not apply if Options are to be replaced in accordance with Rule 8.11
(Mergers and reorganisations).

	 	 8.8.1	 	If notice is duly given of a meeting to consider a resolution for the
voluntary winding-up of the Company, Options may be exercised, subject to the
satisfaction of the Condition, until the commencement of the winding-up within the
meaning of the Insolvency Act 1986 (but the exercise of any Option in these
circumstances will be of no effect if the resolution is not passed). Options not
exercised or exchanged (under Rule 9 (Exchange of Options)) will lapse at the end of
the period specified in Rule 9.2 (Exchange) .
	 
	 	 8.8.2	 	If the Company is wound-up by the court, Options may be exercised, subject
to the satisfaction of the Condition, within 2 months after the date of the winding-up
order. However, the liquidator or the court (if appropriate) must authorise the issue
or transfer of Shares after such exercise, and the Optionholder must apply for this
authority and pay his application costs. Any Options not exercised during the 2 month
period will lapse at the end of the period.

	8.9	 	Administration
	 
	 	 	This Rule does not apply if Options are to be replaced in accordance with Rule 8.11
(Mergers and reorganisations).
	 
	 	 	If an administration order is made in relation to the Company, Optionholders may exercise
their Options, subject to the satisfaction of the Condition, within 6 weeks after the date
of the administration order. However, the administrator or the court must authorise the
issue or transfer of Shares after such exercise. Any Options not exercised by the end of the
6

     
 

10

 

week period will lapse at that time only if the Directors have given written notice to that
effect to the Optionholders during the 6 week period.

	8.10	 	Voluntary arrangement
	 
	 	 	This Rule does not apply if Options are to be replaced in accordance with Rule 8.11
(Mergers and reorganisations).
	 
	 	 	If a voluntary arrangement is proposed in relation to the Company under Part I of the
Insolvency Act 1986, Optionholders may exercise their Options, subject to the satisfaction
of the Condition within 14 days after the date of sending of any notices of meeting called
under Section 3 of the Insolvency Act 1986 in relation to such proposal. Any Options not
exercised by the end of the 14 day period will lapse at that time only if the Directors have
given written notice to that effect to the Optionholders on the date that notices of the
meeting were sent.
	 
	8.11	 	Mergers and reorganisations
	 
	 	 	If, as a result of events specified in Rules 8.3 to 8.6 and 8.7 to 8.10 a company (“the
Acquiring Company”) obtains Control of the Company and:

	 	 8.11.1	 	the shareholders of the Acquiring Company, immediately after it has
obtained Control, are substantially the same as the shareholders of the Company before
then; or
	 
	 	 8.11.2	 	the obtaining of Control is pursuant to a merger with the Company; and
	 
	 	 8.11.3	 	the Company and the Acquiring Company consent to the replacement of
Options under this Rule 8.11;
	 
	 	 	 	then Options will not become exercisable. Instead all rights under the Plan will be replaced
in accordance with Rule 9.3.

	8.12	 	Overseas
transfer
	 
	 	 	If an Optionholder is transferred to work in another country, and, as a result of that
transfer, the Optionholder either:

	 	 8.12.1	 	suffers a tax disadvantage in relation to his Options (this being shown to
the satisfaction of the Directors); or
	 
	 	 8.12.2	 	becomes subject to restrictions on his ability to exercise his Options or
to hold or deal in the Shares or the proceeds of the sale of the Shares acquired on
exercise because of the security laws or exchange control laws of the country to which
he is transferred

then, provided the Optionholder continues to hold an office or employment with a Member of
the Group, the Directors may permit the Optionholder to exercise the Option during the
period starting 3 months before and ending 3 months after the transfer takes place. The
Condition must be satisfied before exercise of Options under this Rule 8.12. If he does not
exercise his Options, following this Rule, the usual exercise Rules will apply to them at
the appropriate times.

 

11

 

	8.13	 	Priority
	 
	 	 	If there is any conflict between any of the provisions of Rules 7 and 8, the provision
which results in the shortest exercise period of the Option will prevail.
	 
	9	 	Exchange of Options
	 
	9.1	 	Application
	 
	 	 	This Rule 9 applies to all Options if any of the following occur:

	 	9.1.1	 	a person (or a group of persons acting in concert) has obtained Control of
the Company as a result of making an offer to acquire shares;
	 
	 	9.1.2	 	a court sanctions a scheme of arrangement under Section 425 Companies Act
1985 (or equivalent local legislation) in connection with the acquisition of Shares or
there is a local equivalent to that sanction procedure;
	 
	 	9.1.3	 	any person becomes entitled or bound to acquire Shares under Sections 428
and 429 Companies Act 1985 (or equivalent legislation);
	 
	 	9.1.4	 	a resolution is passed for the voluntary winding-up of the Company; or.
	 
	 	9.1.5	 	the Company and the Acquiring Company consent to the replacement of Options
in accordance with Rule 8.11 (Mergers and reorganisations).

	9.2	 	Exchange
	 
	 	 	If this Rule 9 applies, Options may be exchanged during the period of 6 months after
the relevant event and with the agreement of the company offering the exchange.
	 
	9.3	 	Exchange terms
	 
	 	 	Where an Option is to be exchanged the Optionholder will be granted a new option to
replace it.
	 
	 	 	Where an Optionholder is granted a new option then:

	 	9.3.1	 	the new option will be in respect of shares in any body corporate
determined by the company offering the exchange;
	 
	 	9.3.2	 	the new option will be equivalent to the Option that was exchanged;
	 
	 	9.3.3	 	the new option will be treated as having been acquired at the same time as
the Option that was exchanged and will be exercisable in the same manner and at the
same time;
	 
	 	9.3.4	 	the new option will be subject to the Rules as they last had effect in
relation to the Option that was exchanged, except that, unless the Directors (as
defined in Rule 8.7) decide otherwise, the Condition will not apply; and
	 
	 	9.3.5	 	with effect from the exchange, the Rules will be construed in relation to
the new option as if references to Shares were references to the shares over which the
new option is granted and references to the Company were references to the body
corporate determined under Rule 9.3.1.

     
 

12

 

	10	 	Exercise of Options
	 
	10.1	 	Exercise
	 
	 	 	An Optionholder can exercise his Option validly only in the way described in, and
subject to, this Rule 10.
	 
	10.2	 	Part exercise

	 	10.2.1	 	An Option may be exercised in respect of all the Shares under the Option
or only some of those Shares. These restrictions will not apply where an Option is
exercised for the maximum number of Shares permissible at the time.
	 
	 	10.2.2	 	If an Option is exercised in part, and the balance remains exercisable,
the Directors must on the surrender of the relevant certificate issue a balance
certificate.

	10.3	 	Manner of exercise
	 
	 	 	Options must be exercised by notice in writing or in another form specified by the
Company and delivered to the Company or other duly appointed agent. The notice of exercise
of the Option must be completed, signed (in manuscript or in any other form that may be
specified by the Company) by the Optionholder or by his appointed agent, and must be
accompanied by:

	 	10.3.1	 	the relevant option certificate (if required by the Company); and
	 
	 	10.3.2	 	correct payment in full of the Option Price for the number of Shares being
acquired or details of arrangements agreed between the Optionholder and the Company for
the payment of the Option Price for the number of Shares being acquired;
	 
	 	10.3.3	 	if required by the Company, a declaration as to his nationality and/or
residence; and
	 
	 	10.3.4	 	unless the Company decides otherwise, in the case of an exercise by an
Optionholder’s personal representatives under Rule 8.2, an office copy of a valid UK
grant of probate.

Subject to Rule 10.4 (Delay in exercise), in this Rule 10, the “Option Exercise Date” will
be the date of receipt by the Company or other duly appointed agent of the documents and, if
appropriate, the payment referred to in Rule 10.3.

	10.4	 	Delay in exercise
	 
	 	 	The Option Exercise Date may be delayed until the later of:

	 	10.4.1	 	the date on which the Directors either decide that the Condition to which
the Option is subject has been satisfied. The Directors must make a decision about the
satisfaction of the Condition within 14 days of receipt by the Company or other duly
appointed agent of the documents and, if appropriate, the payment; and
	 
	 	10.4.2	 	if any statute, regulation or code adopted by the Company based on the
Model Code, prohibits the exercise of Options, the date when the Optionholder is
permitted to exercise an Option.

	10.5	 	Issue or transfer
	 
	 	 	Subject to Rule 10.7:

     
 

13

 

	 	10.5.1	 	Shares to be issued following the exercise of an Option will be issued
within 30 days of the Option Exercise Date.
	 
	 	10.5.2	 	If Shares are to be transferred following the exercise of an Option, the
Directors will procure this transfer within 30 days of the Option Exercise Date.

	10.6	 	Rights

	 	10.6.1	 	Shares issued on the exercise of an Option will rank equally in all
respects with the Shares in issue on the date of allotment. They will not rank for any
rights attaching to Shares by reference to a record date preceding the date of
allotment.
	 
	 	10.6.2	 	Where Shares are to be transferred on the exercise of an Option,
Optionholders will be entitled to all rights attaching to the Shares by reference to a
record date on or after the transfer date. They will not be entitled to rights before
that date.

	10.7	 	Consents
	 
	 	 	All allotments, issues and transfers of Shares will be subject to any necessary
consents under any relevant enactments or regulations for the time being in force in the
United Kingdom or elsewhere. The Optionholder will be responsible for complying with any
requirements he needs to fulfil in order to obtain or avoid the necessity for any such
consent.
	 
	10.8	 	Articles of association
	 
	 	 	Any Shares acquired on the exercise of Options are subject to the articles of
association of the Company from time to time in force.
	 
	10.9	 	Listing
	 
	 	 	If and so long as the Shares are listed on the Official List of the UK Listing
Authority and traded on the London Stock Exchange, the Company will apply for listing of any
Shares issued under the Plan as soon as practicable after their allotment.
	 
	10.10	 	Cash alternative
	 
	 	 	In exceptional circumstances, the Directors may in their discretion determine not to
procure the transfer or issue of Shares to an Optionholder who exercises his Option, but
instead to pay to him (subject to the withholding provisions in Rule 11.8) a cash amount.
This cash amount must be equal to the amount by which the market value of the Shares in
respect of which the Option is exercised exceeds the Option Price. Alternatively, the
Directors may procure the transfer of Shares to the value of that cash amount or apply that
amount in the issue of Shares. If the Directors so determine, the Optionholder need not pay
the Option Price or, if he has paid it, the Company will repay the Option Price to him.
	 
	 	 	For the purposes of this Rule, “market value” means:

	 	10.10.1	 	the middle market quotation of a Share as derived from the Daily Official
List of the London Stock Exchange on the Option Exercise Date (or the next Business Day
if the Option Exercise Date is not a Business Day); or
	 
	 	10.10.2	 	where Shares of the same class are not admitted to the Official List of
the UK Listing Authority, the market value of a Share calculated as described in Part
VIII of the Taxation of Chargeable Gains Act 1992.

     
 

14

 

	11	 	General
	 
	11.1	 	Notices
	 
	 	 	Any notice or other document which has to be given to an Eligible Employee or
Optionholder under or in connection with the Plan may be:

	 	11.1.1	 	delivered or sent by post to him at his home address according to the
records of his employing company; or
	 
	 	11.1.2	 	sent by e-mail or fax to any e-mail address or fax number which according
to the records of his employing company is used by him;

or in either case such other address which the Company considers appropriate.

Any notice or other document which has to be given to the Company or other duly appointed
agent under or in connection with the Plan may be delivered or sent by post to it at its
respective registered office (or such other place as the Directors or duly appointed agent
may from time to time decide and notify to Optionholders) or except for the exercise of
Options under Rule 10 sent by e-mail or fax to any e-mail address or fax number notified to
the sender.

Notices sent by post will be deemed to have been given on the second day after the date of
posting. However, notices sent by or to an Optionholder who is working overseas will be
deemed to have been given on the seventh day after the date of posting.

Notices sent by e-mail or fax, in the absence of evidence of non-delivery, will be deemed to
have been received on the day after sending.

	11.2	 	Documents sent to shareholders
	 
	 	 	The Company may send to Optionholders copies of any documents or notices normally sent
to the holders of its Shares at or around the same time as issuing them to the holders of
its Shares.
	 
	11.3	 	Directors’ decisions final and binding
	 
	 	 	The decision of the Directors on the interpretation of the Rules or in any dispute
relating to an Option or matter relating to the Plan will be final and conclusive.
	 
	11.4	 	Costs
	 
	 	 	The Company will pay the costs of introducing and administering the Plan. Each
Participating Company will reimburse the Company for any costs incurred in connection with
the grant of Options to, or exercise of Options by, employees of that Participating Company.
	 
	11.5	 	Regulations
	 
	 	 	The Directors have the power from time to time to make or vary regulations for the
administration and operation of the Plan but these must be consistent with the Rules.
	 
	11.6	 	Terms of employment

	 	11.6.1	 	For the purposes of this Rule 11.6, “Employee” means any Optionholder, any
Eligible Employee or any other person.

     
 

15

 

	 	11.6.2	 	This Rule 11.6 applies:

	 	(i)	 	whether the Company has full discretion in the operation of the
Plan, or whether the Company could be regarded as being subject to any
obligations in the operation of the Plan;
	 
	 	(ii)	 	during an Employee’s employment or employment relationship; and
	 
	 	(iii)	 	after the termination of an Employee’s employment or
employment relationship, whether the termination is lawful or unlawful.

	 	11.6.3	 	Nothing in the Rules or the operation of the Plan forms part of the
contract of employment or employment relationship of an Employee. The rights and
obligations of an Employee are separate from, and are not affected by, the Plan.
Participation in the Plan does not create any right to, or expectation of, continued
employment or a continued employment relationship.
	 
	 	11.6.4	 	The grant of Options on a particular basis in any year does not create any
right to or expectation of the grant of Options on the same basis, or at all, in any
future year.
	 
	 	11.6.5	 	No Employee is entitled to participate in the Plan, or be considered for
participation in it, at a particular level or at all. Participation in one operation of
the Plan does not imply any right to participate, or to be considered for participation
in any later operation of the Plan.
	 
	 	11.6.6	 	Without prejudice to an Employee’s right to exercise an Option subject to
and in accordance with the express terms of the Rules and the Performance Condition, no
Employee has any rights in respect of the exercise or omission to exercise any
discretion, or the making or omission to make any decision, relating to the Option. Any
and all discretions, decisions or omissions relating to the Option may operate to the
disadvantage of the Employee, even if this could be regarded as capricious or
unreasonable, or could be regarded as in breach of any implied term between the
Employee and his employer, including any implied duty of trust and confidence. Any such
implied term is excluded and overridden by this Rule 11.6.
	 
	 	11.6.7	 	No Employee has any right to compensation for any loss in relation to the
Plan, including:

	 	(i)	 	any loss or reduction of any rights or expectations under the
Plan in any circumstances or for any reason (including lawful or unlawful
termination of employment or the employment relationship);
	 
	 	(ii)	 	any exercise of a discretion or a decision taken in relation to
an Option or to the Plan, or any failure to exercise a discretion or take a
decision;
	 
	 	(iii)	 	the operation, suspension, termination or amendment of the
Plan.

	 	11.6.8	 	Participation in the Plan is permitted only on the basis that the
Participant accepts all the provisions of the Rules, including in particular this Rule
11.6. By participating in the Plan, an Employee waives all rights under the Plan, other
than the right to exercise an Option subject to and in accordance with the express
terms of the Rules and the Performance Condition, in consideration for, and as a
condition of, the grant of an Option under the Plan.

     
 

16

 

	 	11.6.9	 	Nothing in this Plan confers any benefit, right or expectation on a person
who is not an Employee. No such third party has any rights under the Contracts (Rights
of Third Parties) Act 1999 to enforce any term of this Plan. This does not affect any
other right or remedy of a third party which may exist.
	 
	 	11.6.10	 	Each of the provisions of this Rule 11.6 is entirely separate and
independent from each of the other provisions. If any provision is found to be invalid
then it will be deemed never to have been part of these Rules and to the extent that it
is possible to do so, this will not affect the validity or enforceability of any of the
remaining provisions.

	11.7	 	Employee trust
	 
	 	 	The Company and any Subsidiary of the Company may provide money to the trustee of any
trust or any other person to enable them or him to acquire shares to be held for the
purposes of the Plan, or enter into any guarantee or indemnity for those purposes, to the
extent permitted by Section 153 of the Companies Act 1985.
	 
	11.8	 	Withholding
	 
	 	 	The Company, any employing company and any trustee of any employee benefit trust may
withhold such amount and make such arrangements as it considers necessary to meet any
liability to taxation or social security contributions in respect of Options. These
arrangements may include the sale or reduction in number of any shares on behalf of an
Optionholder, unless the Optionholder discharges the liability himself.
	 
	11.9	 	Data protection
	 
	 	 	By participating in the Plan the Optionholder consents to the holding and processing of
personal data provided by the Optionholder to the Company for all purposes relating to the
operation of the Plan. These include, but are not limited to:

	 	11.9.1	 	administering and maintaining Optionholder records;
	 
	 	11.9.2	 	providing information to trustees of any employee benefit trust,
registrars, brokers or third party administrators of the Plan;
	 
	 	11.9.3	 	providing information to future purchasers of the Company or the business
in which the Optionholder works;
	 
	 	11.9.4	 	transferring information about the Optionholder to a country or territory
outside the European Economic Area.

	12	 	Changing the Plan
	 
	12.1	 	Directors’ powers
	 
	 	 	Except as described in the rest of this Rule 12, the Directors may at any time change
the Plan in any way.
	 
	12.2	 	Shareholder approval

	 	12.2.1	 	Except as described in Rule 12.2.2 and 12.4, the Company in general
meeting must approve in advance by ordinary resolution any proposed change to the Rules
to the advantage of present or future Optionholders, which relates to the following:

     
 

17

 

	 	(i)	 	the persons to or for whom Shares may be provided under the
Plan;
	 
	 	(ii)	 	the limitations on the number of Shares which may be issued
under the Plan;
	 
	 	(iii)	 	the individual limit for each Optionholder under the Plan;
	 
	 	(iv)	 	the determination of the Option Price;
	 
	 	(v)	 	any rights attaching to the Options and the Shares;
	 
	 	(vi)	 	the rights of Optionholders in the event of a capitalisation
issue, rights issue, sub-division or consolidation of shares or reduction or
any other variation of capital of the Company;
	 
	 	(vii)	 	the terms of this Rule 12.2.1.

	 	12.2.2	 	The Directors can change the Plan and need not obtain the approval of the
Company in general meeting for any minor changes:

	 	(i)	 	to benefit the administration of the Plan;
	 
	 	(ii)	 	to comply with or take account of the provisions of any
proposed or existing legislation;
	 
	 	(iii)	 	to take account of any changes to legislation; or
	 
	 	(iv)	 	to obtain or maintain favourable tax, exchange control or
regulatory treatment of the Company, any Subsidiary or any present or future
Optionholder.

	 	12.2.3	 	The Company may establish further plans based on the Rules but modified to
take account of local tax, exchange control or securities laws in non-UK territories.

	12.3	 	Optionholders’ Consent
	 
	 	 	No amendment shall be made which would have the effect of abrogating or altering
adversely in any material respect any of the subsisting rights of Optionholders in relation
to their Options or the Shares except with the consent of the majority of the Optionholders
affected by the amendment.
	 
	12.4	 	Optionholders who move overseas
	 
	 	 	The Directors may amend, vary or add to the provisions of the Plan as they consider
necessary or desirable to take account of, or to mitigate or to comply with relevant
overseas taxation, securities or exchange control laws, provided that Options granted to
such Optionholders are not overall more favourable than benefits granted to other
Optionholders.
	 
	12.5	 	Notice
	 
	 	 	The Directors may give written notice of any changes made to any Optionholder affected.
	 
	12.6	 	Termination of the Plan
	 
	 	 	The Plan will terminate on 15 June 2015, but the Directors may terminate the Plan at
any time before that date. However, Options granted before such termination will continue to
be valid and exercisable as described in these Rules.

     
 

18

 

	13	 	Governing law and jurisdiction
	 
	 	 	English law governs the Plan and all Options and their construction. The English Courts
have non-exclusive jurisdiction in respect of disputes arising under or in connection with
the Plan or any Option.

19

 

Schedule 1

The New InterContinental Hotels Group Executive Approved Share Option Plan

This schedule contains the rules of the InterContinental Hotels Group Executive
Approved Share Option Plan (“Approved Plan”). The Rules of the InterContinental Hotels Group
Executive Share Option Plan (the “Plan”) as amended by this schedule apply to Options
granted under the Approved Plan.

	1	 	Definitions
	 
	 	 	Words used in the Approved Plan have the same meaning as in the Plan unless amended as
stated below:
	 
	 	 	“Eligible Employee” does not include anyone who is:

	 	(i)	 	excluded from participation because of paragraph 9 of Schedule 4 to ITEPA
(material interests provisions); or
	 
	 	(ii)	 	a director who is required to work less than 25 hours a week (excluding meal
breaks) for the Company.

“Participating Companies” means:

	 	(i)	 	the Company; and
	 
	 	(ii)	 	any Subsidiary, a jointly-owned company (within the meaning of paragraph 34 of
Schedule 4 to ITEPA) of which the Company is a joint owner and any other company which
is permitted by the Inland Revenue to participate and which in all cases is so
designated by the Directors;

“Shares” must satisfy paragraphs 16 to 20 of Schedule 4 to ITEPA;

“Subsidiary” means a company under the Control of the Company.

	2	 	Shares
	 
	 	 	The following new Rule is added:
	 
	 	 	“If any Shares which are subject to an Option cease to satisfy paragraphs 16 to 20 of
Schedule 4 to ITEPA and the Directors notify the Inland Revenue that they wish the Approved
Plan to be disapproved then the definition of “Shares” in Rule 1.1 is changed automatically
to “fully paid ordinary shares in the capital of the Company”.”
	 
	3	 	Disposal restrictions
	 
	 	 	The exception to Rule 2.7 set out in Rule 2.7.2 does not apply.
	 
	4	 	Option Price

	 	4.1	The following rule replaces Rule 3.1.1:
	 
	 	“3.1.1 	 not less than the Market Value of a Share on the Date of Grant or such other date as
the Inland Revenue may agree; and”

	4.2	 	The following rule replaces Rule 3.2:
	 
	 	 	“3.2 Market value

“Market Value” on any particular day means:

     
 

20

 

	 	3.2.1	 	where Shares of the same class are not admitted to the Official List of the UK
Listing Authority, the market value of a share calculated as described in Part VIII of
the Taxation of Chargeable Gains Act 1992 and agreed in advance with the Shares
Valuation Division of the Inland Revenue; and
	 
	 	3.2.2	 	where Shares of the same class are so listed and traded on the London Stock
Exchange:
	 
	 	(i)	 	their middle market quotation on the immediately preceding Business Day; or
	 
	 	(ii)	 	the average of the middle market quotation on the 3 immediately preceding
Business Days;
	 
	 	(iii)	 	or such other price as may be agreed in advance with the Shares Valuation
Division of the Inland Revenue.
	 
	 	The middle market quotation is taken from the Daily Official List of the London Stock
Exchange.”

	5	 	Revenue limit
	 
	 	 	The following new Rule is added:
	 
	 	 	“The Directors must not grant an Option to an Eligible Employee which would cause the
aggregate market value of:

	 	(i)	 	the Shares subject to that Option; and
	 
	 	(ii)	 	the Shares which he may acquire on exercising his Options under the Approved
Plan; and
	 
	 	(iii)	 	the shares which he may acquire on exercising his options under any other
Inland Revenue approved discretionary scheme established by the Company or by any of
its associated companies (as defined in paragraph 35 of Schedule 4 to ITEPA)

to exceed the amount permitted under paragraph 6(1) of Schedule 4 to ITEPA (currently
£30,000). For the purposes of this paragraph, market value is calculated as at the date of
grant of the options as described in the relevant plan rules.”

	6	 	Adjustment of Options
	 
	 	 	The following rule replaces Rule 6.1:
	 
	 	 	“6.1 Adjustment of Options

If there is a variation in the equity share capital of the Company, including a
capitalisation or rights issue, sub-division, consolidation or reduction of share capital:

	 	6.1.1	 	the number of Shares comprised in each Option; and
	 
	 	6.1.2	 	the Option Price

may be adjusted in any way (including retrospective amendments) that the Directors consider
appropriate. However, no adjustment of Options may be made under this Rule 6 without and to
the extent of the prior approval of the Inland Revenue.”

	7	 	Material interest
	 
	 	 	The following new Rule is added:

     
 

21

 

“An Optionholder may not exercise an Option while he is excluded from participation in the
Approved Plan under paragraph 9 of Schedule 4 to ITEPA (material interest provisions).”

	8	 	Death
	 
	8.1	 	The following rule replaces Rule 8.2:

	 	8.2	 	“Death

If an Optionholder dies, his Options may be exercised, irrespective of the satisfaction of
any Condition, by his personal representatives up to one year from his death. To the extent
that any Option exercisable under this Rule 8.2 is not so exercised, it will lapse.”

	9	 	Exercise and lapse — exceptions to the general rule
	 
	9.1	 	Cessation of Employment
	 
	 	 	For the purposes of paragraph 35A of Schedule 4 of ITEPA, the retirement age specified in
the Plan is 55.
	 
	9.2	 	Directors’ discretion
	 
	 	 	The following new rule is added:
	 
	 	 	“8.14 Directors’ discretion

The Directors will exercise all discretions under Rules 7 and 8 fairly and reasonably.”

	10	 	Exchange of Options
	 
	10.1	 	The following rule replaces Rule 9:
	 
	 	 	“9 Exchange of Options
	 
	 	 	9.1 Application

 This Rule applies if a company:

	 	9.1.1	 	obtains Control of the Company as a result of making a general offer to acquire:

	 	(i)	 	the whole of the issued ordinary share capital of the Company
(other than that which is already owned by it and its subsidiary or holding
company) made on a condition such that, if satisfied, the Acquiring Company
will have Control of the Company; or
	 
	 	(ii)	 	all the Shares (or those Shares not already owned by the
Acquiring Company or its subsidiary or holding company); or

	 	9.1.2	 	obtains Control of the Company under a compromise or arrangement sanctioned
by the court under Section 425 of the Companies Act 1985; or
	 
	 	9.1.3	 	becomes bound or entitled to acquire Shares under Sections 428 to 430F of
the Companies Act 1985.
	 
	 	9.2	 	Exchange

If this Rule 9 applies, Options may be exchanged within the period referred to in paragraph
26(3) of Schedule 4 to ITEPA and with the agreement of the company offering the exchange.

	 	9.3	 	Exchange terms

     
 

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Where an Option is to be exchanged the Optionholder will be granted a new option to replace
it.

Where an Optionholder is granted a new option then:

	 	9.3.1	 	the new Option will be in respect of shares in any body corporate
determined by the company offering the exchange as long as they satisfy the conditions
of paragraph 27(4) of Schedule 4 to ITEPA;
	 
	 	9.3.2	 	the new option will be equivalent to the Option that was exchanged;
	 
	 	9.3.3	 	the new option will be treated as having been acquired at the same time as
the Option that was exchanged and will be exercisable in the same manner and at the
same time;
	 
	 	9.3.4	 	the new option will be subject to the Rules as they last had effect in
relation to the Option that was exchanged except that, unless the Directors (as defined
in Rule 8.7) decide otherwise, the Condition will not apply; and
	 
	 	9.3.5	 	with effect from exchange, the Rules will be construed in relation to the
new option as if references to Shares are references to the shares over which the new
option is granted and references to the Company are references to the body corporate
determined under Rule 9.3.1.”

	11	 	Cash alternative
	 
	 	 	Rule 10.10 is deleted.
	 
	12	 	Changing the Plan
	 
	 	 	The following new Rule is added:
	 
	 	 	“The Directors can change the Approved Plan and need not obtain the approval of the Company
in general meeting for any minor changes which are necessary or desirable in order to
maintain Inland Revenue approval of the Approved Plan under Schedule 4 to ITEPA or any other
enactment.”
	 
	13	 	Revenue approval
	 
	 	 	The following new Rule is added:
	 
	 	 	“If the approved status of the Approved Plan is to be maintained, any change to a key
feature of the Plan after it has been approved under Schedule 4 to ITEPA will take effect
from the later of:

	 	(i)	 	the date that the change is approved by the Inland Revenue; and
	 
	 	(ii)	 	the date the Directors resolve to approve the amendment.

If the approved status of the Plan is not to be maintained, the Directors must inform the
Inland Revenue.

A “key feature” is any provision necessary to meet the requirement of Schedule 4 of ITEPA.”

     
 

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