Document:

exv4w4

Exhibit 4.4

 

RULES OF THE

REED ELSEVIER GROUP PLC GROWTH PLAN

 

Approved by shareholders of

Reed Elsevier PLC in general meeting on 21 April 2010

Approved by shareholders of

Reed Elsevier NV in general meeting on 20 April 2010

Adopted by the directors of Reed Elsevier Group plc on 21 April 2010

 

 

THE REED ELSEVIER GROUP PLC GROWTH PLAN 2010

1. Definitions

1.1 In this Plan, unless the context otherwise requires, the following expressions have the
following meanings:

Award means, as the context requires, a Performance Share Award and/or a Matching Share Award;

Cap means the overall individual limit on Shares which a Participant may receive under the Plan
as set out in Rule 3;

Capital Reorganisation means any variation in the share capital or reserves of a Qualifying
Company (including, without limitation, by way of capitalisation issue, rights issue,
sub-division, consolidation, or reduction);

CEO means the Chief Executive Officer of the Company;

CFO means the Chief Financial Officer of the Company;

Committee means the remuneration committee of the board of directors of the Company or other duly
authorised committee;

Company means Reed Elsevier Group plc;

Control has the meaning given to it by section 995 of the Income Taxes Act 2007;

Date of Grant means the date on which an Award is granted;

Dealing Day means a day on which the London Stock Exchange, the Amsterdam Stock Exchange,
Euronext, the New York Stock Exchange (or, where the primary listing of a company in the
Comparator Group is outside the UK, the US or the Netherlands, the exchange on which such
company’s shares are listed) is open for the transaction of business;

Dealing Restrictions means any restrictions on, or requirement for approvals for dealing in
Shares whether under the Company’s, RE PLC’s or RE NV’s share dealing rules, the provisions of
the Model Code for Securities Transactions by Directors of Listed Companies, the provisions of
the Listing Rules of the UK Listing Authority or the City Code on Takeovers and Mergers or any of
their equivalents in any applicable jurisdiction;

Deferred Performance Shares means the Shares comprised in a Performance Share Award in respect of
which the Committee has determined that the performance conditions imposed under Rule 6.3 have
been satisfied but which, except as otherwise provided in these Rules, Vest on the Five Year
Vesting Date;

Dividend Equivalent means a right to a cash payment or Shares in accordance with Rule 12.

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Dutch Share means an ordinary share in the capital of RE NV or shares representing those shares
following any Capital Reorganisation of RE NV and includes an American Depositary Share
representing a Dutch Share;

Executives means the CEO and the CFO;

Five Year Vesting Date means the date following the end of the financial year of the Qualifying
Companies ending 31 December 2014, on which the Committee determines the extent to which the
performance conditions imposed under Rule 9.3 have been satisfied or if there are Dealing
Restrictions in place on that date, Vesting will be on such later date when those Dealing
Restrictions lift;

Group means the Company and every company which is under the Control of the Company and member of
the Group will be construed accordingly;

Matching Share Award means a right granted under Rule 9 to receive Shares without payment and
references to Matching Shares will be construed accordingly;

Participant means any individual who holds a subsisting Award (including, where the context
permits, the legal personal representatives of a deceased Participant);

Performance Share Award means a right granted under Rule 6 to receive Shares without payment and
references to Performance Shares will be construed accordingly;

Personal Shares means any Shares which are beneficially owned by a Participant, excluding any
Shares invested in the Reed Elsevier Group plc Bonus Investment Plan 2003 or the Reed Elsevier
Group plc Bonus Investment Plan 2010;

Plan means this Reed Elsevier Group plc Growth Plan as amended from time to time;

Qualifying Company means each of RE PLC and RE NV;

RE NV means Reed Elsevier NV;

RE PLC means Reed Elsevier PLC;

Rules means these Plan rules;

Share means a UK Share and/or a Dutch Share and Shareholder will be construed accordingly;

Termination Date means the date on which a Participant ceases to be employed by RE PLC, RE NV or
any member of the Group;

Three Year Vesting Date means the date following the end of the financial year of the Qualifying
Companies ending 31 December 2012, on which the Committee determines the extent to which the
performance conditions imposed under Rule 6.3 have been satisfied or if there are Dealing
Restrictions in place on that date, Vesting will be on such later date when those Dealing
Restrictions lift;

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UK Share means an ordinary share in the capital of RE PLC or shares representing those shares
following any Capital Reorganisation of RE PLC and includes an American Depositary Share
representing a UK Share; and

Vesting Date means the date on which a Participant becomes absolutely entitled to receive Shares
under an Award or Deferred Performance Shares in accordance with these Rules and Vest, Vested and
Vesting will be construed accordingly.

1.2 Where the context permits the singular will include the plural and vice versa and the masculine
will include the feminine. Headings will be ignored in construing the Plan.

1.3 References to any act of Parliament will include any statutory modification, amendment or re
enactment thereof.

2. Eligibility

Participation in the Plan is restricted to the Executives.

3. Overall Individual Limit for Awards

3.1 Notwithstanding any other provision of the Rules, the total number of Shares which a
Participant may receive in respect of Awards granted under the Plan will not exceed 150% of the
number of Shares comprised in the Participant’s Performance Share Award. Dividend Equivalents do
not count towards this limit.

3.2 If a Participant ceases to be an Executive in circumstances where Rule 13.3 applies, this limit
will be reduced by multiplying it by A/B where A is the number of complete calendar months which
the Executive was employed between 1 January 2010 and 31 December 2014 and B is 60 or such other
reduction as the Committee may determine appropriate.

4. Requirement to Commit Personal Shares

4.1 Participation in this Plan is subject to the Participant committing a specified number of
Personal Shares to the Plan as at the Date of Grant of a Performance Share Award (or by such other
date as the Committee may permit in its discretion). To the extent that any or all of a
Participant’s Personal Shares are not so committed by the prescribed date, any Awards will
immediately lapse in full.

4.2 The number of Personal Shares required to be committed to the Plan is, in the case of the CEO
300% and, in the case of the CFO 200% of the Participant’s basic annual salary as at the Date of
Grant of the Participant’s Performance Share Award.

4.3 The Committee will determine the method by which Participants are required to commit Personal
Shares to the Plan. This may include requiring that:

	(a)	 	the Participant signs an undertaking to retain the beneficial ownership of the Personal
Shares until the Five Year Vesting Date and not to charge, pledge or grant any lien or
security over them; or
	 
	(b)	 	the Participant’s Personal Shares are transferred to and held by a specified nominee on the
Participant’s behalf.

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4.4 A Participant’s Personal Shares must remain committed to the Plan for so long as he continues
to hold an Award. A Participant’s Performance Share Award, entitlement to Deferred Performance
Shares and Matching Share Award will lapse with immediate effect if any of his Personal Shares
cease to be committed to the Plan, except as expressly provided for by these Rules.

5. General provisions relating to Awards

5.1 The grant of an Award is conditional upon a Participant agreeing to comply with any
arrangements specified by the Company for the payment of tax and social security contributions in
respect of Shares to which he is or may become entitled under the Plan including, without
limitation (i) the right to sell on the Participant’s behalf sufficient Shares to satisfy any tax
or social security contributions liability on his part for which any member of the Group may be
liable and (ii) entering into any election under Chapter 2 of Part 7 of the Income Tax (Earnings &
Pensions) Act 2003 specified by the Company.

5.2 In addition to the performance conditions imposed by Rules 6.3 and 9.3 and the condition
imposed by Rule 5.1, the Committee may make the grant of Awards subject to any other conditions it
determines appropriate including requiring a Participant to agree to comply with certain
post-employment restrictive covenants.

5.3 Awards will be granted by deed. Each Participant will receive a statement (electronically or in
hard copy) following the relevant Date of Grant summarising the main terms of the Award.

6. Grant of Performance Share Awards

6.1 Subject to the terms of these Rules, the Committee may grant a Performance Share Award to an
Executive in its absolute discretion.

6.2 A Performance Share Award may only be granted during the period of 42 days commencing on:-

	(a)	 	the day following the day on which the Plan was approved by both RE PLC in general meeting
and RE NV in general meeting; or
	 
	(b)	 	the day following the lifting of any Dealing Restrictions which prevented the granting of the
Performance Share Award during the period specified above,

unless the Committee determines that exceptional circumstances exist which justify the grant of a
Performance Share Award at such other time, subject to the requirement that Performance Share
Awards cannot be granted after 31 December 2010.

6.3 Except as otherwise permitted in these Rules, Performance Share Awards will only Vest to the
extent the performance conditions applicable to Performance Share Awards, as set out in Schedule 1
to this Plan, have been satisfied.

7. Individual Limit For Performance Share Awards

The maximum aggregate value of Shares comprised in a Participant’s Performance Share Award will not
exceed, as at the Date of Grant of that Performance Share Award, 600% of the Participant’s basic
salary from the Group as at the Date of Grant.

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8. Vesting of Performance Share Awards 

8.1 The number of Performance Shares which may Vest under a Performance Share Award will be
determined by the Committee by reference to the extent to which the performance conditions imposed
under Rule 6.3 have been fulfilled, and any other conditions to which the Performance Share Award
is subject are fulfilled or waived.

8.2 Except as otherwise provided in these Rules, 50% of the number of Shares determined in
accordance with Rule 8.1, if any, will Vest on the Three Year Vesting Date. Shares to satisfy the
Vested Performance Shares will be transferred to Participants as soon as reasonably practicable
after that date along with any related Dividend Equivalents.

8.3 Except as otherwise provided in these Rules, 50% of the number of Shares determined in
accordance with Rule 8.1, if any, will become Deferred Performance Shares and Vest on the Five Year
Vesting Date, subject to the Participant remaining an employee of RE PLC, RE NV or a member of the
Group until that date. Shares to satisfy the Vested Deferred Performance Shares will be
transferred to Participants as soon as reasonably practicable after that date
along with any related Dividend Equivalents.

9. Grant of Matching Share Awards

9.1 Subject to the terms of these Rules, the Committee may grant a Matching Share Award to an
Executive in its absolute discretion provided that the Executive has not ceased to be an employee
of the Group and is not under notice before the Date of Grant of the Matching Share Award, unless
the circumstances set out in Rule 13.3 apply, in which case the Executive may be granted a Matching
Share Award.

9.2 A Matching Share Award may only be granted during the period of 42 days commencing
on:-

	(a)	 	the day following the announcement of results for the Qualifying Companies for the
2012 financial year; or
	 
	(b)	 	the day following the lifting of any Dealing Restrictions which prevented the
granting of the Matching Share Award during the period described in (a) above,

unless the Committee determines that exceptional circumstances exist which justify the grant
of a Matching Share Award at such other time, subject to the requirement that Matching Share Awards
cannot be granted after 31 December 2013.

9.3 Except as otherwise permitted in these Rules, Matching Share Awards will only Vest to
the extent the performance conditions applicable to Matching Share Awards, as set out in Schedule 1
to this Plan, have been satisfied.

10. Individual Limit For Matching Share Awards

The number of Shares comprised in a Participant’s Matching Share Award is equal to the number of
Deferred Performance Shares, if any, and Personal Shares held by a Participant in the Plan at the
Date of Grant of the Matching Share Award.

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11. Vesting of Matching Share Awards

11.1 The number of Shares which Vest under a Matching Share Award will be determined by the
Committee by reference to the extent to which the performance conditions imposed under Rule 9.3
have been fulfilled, and any other conditions to which the Matching Share Award is subject, have
been fulfilled or waived. This number is subject to the Cap.

11.2 Except as otherwise provided in these Rules, Matching Shares, if any, will Vest on the Five
Year Vesting Date and will be transferred to Participants as soon as reasonably practicable after
that date along with any related Dividend Equivalents.

12. Entitlement to Dividend Equivalents

12.1 In addition to any Shares which a Participant becomes entitled to on the Vesting of a
Performance Share Award, a Matching Share Award or Deferred Performance Shares, the Participant
will, subject to Rule 12.3, also be entitled to a cash payment equal in value to the ordinary
dividends (excluding any associated tax credit) which would have been paid on the Vested Shares
during the following periods: (a) in respect of Vested Performance Shares, commencing on 1 January
2010 and ending on 31 December 2012,(b) in respect of Vested Matching Shares, commencing on 1
January 2013 and ending on 31 December 2014 and (c) in respect of Vested Deferred Performance
Shares, commencing on 1 January 2010 and ending on 31 December 2014, or ending on such earlier date
when Shares Vest under the Plan.

12.2 The cash payment to which the Participant becomes entitled under Rule 12.1:

	(a)	 	will be calculated (in such manner as the Committee sees fit) by reference to the currency of
payment of the underlying dividend (and paid in such currency as the Committee sees fit);
	 
	(b)	 	will be calculated without any entitlement to interest (or other type of investment return)
in the period between the dividend payment date and the Vesting Date;
	 
	(c)	 	will be paid (subject to such deductions as are required by law) within one month of the
relevant Vesting Date; and
	 
	(d)	 	will be calculated by reference to ordinary dividends and without regard to special dividends
or distributions or dividends-in-specie.

12.3 Instead of making a cash payment, the Committee may in its discretion satisfy any entitlement
to Dividend Equivalents arising in accordance with Rule 12.1 by transferring existing Shares with
an equivalent value (as determined at the relevant Vesting Date).

12.4 For the avoidance of doubt, any payment referred to in this Rule 12 does not represent an
entitlement to actual dividends on the underlying Shares, by reason of the Participant not being
beneficial owner of the Shares at that time.

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13. Cessation of employment 

Participant gives or receives Notice

13.1 Except as otherwise provided in these Rules, if the Participant gives or receives notice of
termination of his employment with RE PLC, RE NV or any member of the Group prior to the Three Year
Vesting Date or the Five Year Vesting Date (as applicable), any outstanding Performance Share
Award, Matching Share Award and entitlement to Deferred Performance Shares will lapse. If the
Participant has given notice, the lapse date is the date on which the Participant gave notice. If
the Participant has received notice, the lapse date is the Termination Date or such other date as
determined by the Committee.

13.2 Where Rule 13.1 applies, a Participant’s Personal Shares will be released from the Plan in
full as soon as reasonably practicable following the date notice has been received from the
Participant or the Termination Date as the case may be.

Approved Leavers

13.3 Except as otherwise provided in these Rules, where a Participant ceases to be an employee of
RE PLC, RE NV or a member of the Group by reason of:

	(a)	 	retirement with the consent of the Company;
	 
	(b)	 	injury, disability or ill-health; or
	 
	(c)	 	any other reason which the Committee, in its absolute discretion, determines,

before the Three Year Vesting Date, Rule 13.4 will apply and if he ceases to be so employed after
the Three Year Vesting Date but before the Five Year Vesting Date, Rule 13.5 will apply.

13.4 If a Participant ceases to be employed in accordance with Rule 13.3 before the Three Year
Vesting Date:

	(a)	 	a Performance Share Award will continue on a pro-rated basis. For these purposes, the
pro-rated Performance Share Award will be over such number of Shares as is determined by
multiplying the number of Shares originally comprised in the Performance Share Award by A/B
where A is the number of complete calendar months which the Executive was employed between 1
January 2010 and 31 December 2012 and B is 36;
	 
	(b)	 	50% of the pro-rated Performance Share Award will, to the extent that the relevant
performance conditions have been satisfied, Vest on the Three Year Vesting Date;
	 
	(c)	 	the remaining 50% of the pro-rated Performance Share Award will be subject to a further
pro-rating reduction by multiplying the number of Shares originally comprised in 50% of the
pro-rated Performance Share Award by A/B where A is the number of complete calendar months
which the Executive was employed between 1 January 2010 and 31 December 2014 and B is 60 and
will become Deferred Performance Shares. The Deferred Performance Shares will, except as
otherwise provided in the Rules, Vest on the Five Year Vesting Date. The balance of the 50%
of the pro-rated Performance Share

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	 	 	Award which does not become Deferred Performance Shares will Vest on the Three Year Vesting
Date;
	 
	(d)	 	for the avoidance of doubt, a Matching Share Award will be granted in accordance with Rules 9
and 10 over such number of Shares as is equal to the aggregate of the Deferred Performance
Shares and Personal Shares after the time pro-rating reductions provided for in this Rule
13.4; and
	 
	(e)	 	a pro-rated number of a Participant’s Personal Shares will be retained within the Plan. For
these purposes, the pro-rated number means such number of Shares as is determined by
multiplying the number of Personal Shares by A/B where A is the number of complete calendar
months which the Executive was employed between 1 January 2010 and 31 December 2014 and B is
60. The balance of the Participant’s Personal Shares will be released from the Plan as soon as
reasonably practicable following the Termination Date.

13.5 If a Participant ceases to be employed in accordance with Rule 13.3 after the Three Year
Vesting Date but before the Five Year Vesting Date:

	(a)	 	a Participant will remain entitled to a pro-rated number of Deferred Performance Shares. For
these purposes, the pro-rated number of Deferred Performance Shares will be determined by
multiplying the number of Deferred Performance Shares as determined at the Three Year Vesting
Date by A/B where A is the number of complete calendar months which the Executive was employed
between 1 January 2010 and 31 December 2014 and B is 60. The balance of the Deferred
Performance Shares will be released as soon as reasonably practicable following the
Termination Date;
	 
	(b)	 	a Matching Share Award will continue as a pro-rated Matching Share Award. For these
purposes, the pro-rated Matching Share Award will be over such number of Shares as is
determined by multiplying the number of Shares originally comprised in the Matching Share
Award by A/B where A is the number of complete calendar months which the Executive was
employed between 1 January 2010 and 31 December 2014 and B is 60. The balance of the Matching
Share Award will lapse;
	 
	(c)	 	the pro-rated Matching Share Award will, to the extent that the relevant performance
conditions have been satisfied, Vest on the Five Year Vesting Date; and
	 
	(d)	 	the pro-rated number of a Participant’s Personal Shares will be retained within the Plan.
For these purposes, the pro-rated number means such number of Shares as is determined by
multiplying the number of Personal Shares by A/B where A is the number of complete calendar
months which the Executive was employed between 1 January 2010 and 31 December 2014 and B is
60. The balance of the Participant’s Personal Shares will be released from the Plan as soon
as reasonably practicable following the Termination Date.

13.6 In such circumstances as the Committee may in its absolute discretion determine, the Committee
may vary the application of Rule 13.4 and Rule 13.5 to allow an Award to Vest over a pro-rated
number of Shares on such earlier date as it may determine, subject always to satisfaction of the
relevant performance conditions at that date. Shares will be transferred to the Participant as
soon as reasonably

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practicable following the Award Vesting in accordance with this Rule 13.6. Where Rule 13.6
applies, a Participant’s Personal Shares will be released from the Plan in full on the date on
which his Award Vests.

Where a Participant ceases to be an Executive but continues an employee within the Group

13.7 The Committee may determine that Rules 13.4 and 13.5 will apply where a Participant ceases to
be an Executive but continues to be an employee of RE PLC, RE NV or any member of the Group.

Death

13.8 Where a Participant ceases to be an employee of RE PLC, RE NV or a member of the Group by
reason of death, before the Three Year Vesting Date then Rule 13.9 will apply, and after the Three
Year Vesting Date but before the Five Year Vesting Date, Rule 13.10 will apply.

13.9 If a Participant ceases to be employed in accordance with Rule 13.8 before the Three Year
Vesting Date:

	(a)	 	a Performance Share Award will Vest, subject to performance at the date of death, over a
pro-rated number of Shares. The performance conditions will be assessed based on progress made
against targets at the date of death as determined at the Committee’s absolute discretion. For
these purposes, the pro-rated number of Shares will be such number of Shares as is determined
by multiplying the number of Shares as would otherwise Vest under the Performance Share Award
by A/B where A is the number of complete calendar months which the Executive was employed
between 1 January 2010 and 31 December 2012 and B is 36. Shares and related Dividend
Equivalents will be transferred to a Participant’s personal representatives as soon as
reasonably practicable following Vesting;
	 
	(b)	 	a Participant’s Personal Shares will be released from the Plan in full to his personal
representatives as soon as reasonably practicable following Vesting; and
	 
	(c)	 	, no Matching Share Award will be granted and there will be no entitlement to Deferred
Performance Shares.

13.10 If a Participant ceases to be employed in accordance with Rule 13.8 after the Three Year
Vesting Date but before the Five Year Vesting Date:

	(a)	 	a Matching Share Award will Vest, subject to performance at the date of death, over a
pro-rated number of Shares. The performance conditions will be assessed based on progress
made against targets at the date of death as determined at the Committee’s absolute
discretion. For these purposes, the pro-rated number of Shares will be such number of Shares
as is determined by multiplying the number of Shares under the Matching Share Award by A/B
where A is the number of complete calendar months which the Executive was employed between 1
January 2010 and 31 December 2014 and B is 60. Shares and related Dividend Equivalents will
be transferred to a Participant’s personal representatives as soon as reasonably practicable
following Vesting;

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	(b)	 	a Participant’s Personal Shares will be released from the Plan in full to his personal
representatives as soon as reasonably practicable following Vesting; and

	(c)	 	a Participant’s Deferred Performance Shares will Vest on the date of death and be
transferred, along with related Dividend Equivalents to the Participant’s personal
representatives as soon as reasonably practicable following Vesting.

13.11 The Committee has discretion to vary the application of Rules 13.8 to 13.10 and determine
that an Award should be treated as set out in Rules 13.3 to 13.5 instead.

14. Claw-Back Arrangements

Breach of Restrictive Covenants

14.1 If a Participant breaches any term of his post-termination restrictive covenants (such breach
to be determined by the Committee acting fairly and reasonably), any unvested Awards and Deferred
Performance Shares will lapse on the date of the Committee’s determination and the Committee may
require him to pay to the Company or any other member of the Group, within seven days of written
demand from the Company, the Relevant Amount (as defined in Rule 14.2 below).

14.2 The Relevant Amount is an amount equal to A minus both B and C where:

A is an amount equal to the pre-tax gain realised by the Participant in respect of any Awards,
Deferred Performance Shares and Dividend Equivalents in the period beginning six months before the
Termination Date and ending when the Participant’s restrictive covenants cease to apply. For these
purposes, the gain will be the sum of the market value of the Vested Shares when received by the
Participant and the related Dividend Equivalents, and such gain will be determined irrespective of
whether the Participant has sold or retained the Shares so acquired;

B is an amount equal to the tax and social security charges and liabilities incurred by the
Participant in respect of A; and

C is any payment of the Claw-back Amount, determined in accordance with Rule 14.4 below, in respect
of A.

Materially misstated financial or other data

14.3 If the Committee, within two years of, as the case may be, the Three Year Vesting Date or the
Five Year Vesting Date, considers in good faith that the Vesting of the relevant Award, the Vesting
of Deferred Performance Shares and/or the payment of Dividend Equivalents was determined on the
basis of materially misstated financial or other data (the Incorrect Award), it will, unless it
determines otherwise, recover the Claw-back Amount (as defined in Rule 14.4 below) by taking one or
more of the following actions:

	(a)	 	reduce any outstanding unvested Awards and/or Deferred Performance Shares by the Claw-back
Amount; and/or

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	(b)	 	require the Participant to pay to the Company, within thirty days of a written demand from
the Company, the Claw-back Amount.

14.4 The Claw-back Amount is the difference in value between (i) the Incorrect Award and (ii) the
Awards, Deferred Performance Shares and Dividend Equivalents, which would have Vested or been
payable had the correct data, as determined by the Committee acting fairly and reasonably, been
used. This may be expressed as a number of Shares or a monetary amount or a combination thereof, as
the Committee considers appropriate. In determining the Claw-back Amount, the Committee may take
into account such matters as it sees fit including, but not limited to:

	(a)	 	the difference between the number of Shares under the Incorrect Award and the number of
Shares the Committee considers should have Vested had the correct data been used;
	 
	(b)	 	any gain made by the Participant on the sale of Shares comprised in the Incorrect Award;
	 
	(c)	 	any tax and/or dealing costs incurred by the Participant in connection with the Incorrect
Award, and
	 
	(d)	 	whether the Participant has made a payment pursuant to Rules 14.1 to 14.3 which would take
account of Shares subject to an Incorrect Award.

14.5 By accepting an Award, a Participant will be bound by Rule 14 (i) notwithstanding that it
will only be applicable after the release of Shares under these Rules and (ii) whether or not the
essential terms of this Rule 14 have been separately notified to each Participant.

15. Change of Control of a Qualifying Company

15.1 Except as otherwise provided in these Rules, if any person:

	(a)	 	obtains Control of a Qualifying Company as a result of making an offer to acquire Shares
which is either unconditional or is made on a condition such that if it is satisfied the
person making the offer will have Control of that Qualifying Company;
	 
	(b)	 	becomes bound or entitled to acquire Shares under sections 979 and 983 of the Companies Act
2006 (or in relation to RE NV becomes entitled to acquire compulsorily Shares held by minority
shareholders); or
	 
	(c)	 	obtains Control of a Qualifying Company in pursuance of a compromise or arrangement
sanctioned by the Court under section 899 of the Companies Act 2006 (or in relation to RE NV
under any equivalent legislative provision in the Netherlands),

then any unvested Awards and /or entitlement to Deferred Performance Shares over Shares in that
Qualifying Company (but not those in the other Qualifying Company) will Vest within 30 days of the
relevant event subject to the relevant performance conditions as applicable. The performance
conditions will be assessed based on progress made against targets as at the date of the relevant
event as determined by the Committee. The number of Shares which Vest will be subject to a
pro-rating reduction in accordance with Rule 15.2 or 15.3 below.

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15.2 Where Rule 15.1 applies before the Three Year Vesting Date then the pro-rating reduction
applicable to a Performance Share Award will be determined by multiplying the number of Shares
under a Performance Share Award by A/B where A is the number of complete calendar months between 1
January 2010 and the date of the relevant event (but not exceeding 36) and B is 36. For the
avoidance of doubt, no Matching Share Award will be granted and there will be no entitlement to
Deferred Performance Shares.

15.3 Where Rule 15.1 applies after the Three Year Vesting Date but before the Five Year Vesting
Date then the pro-rating reduction applicable to a Matching Share Award and Deferred Performance
Shares will be determined by multiplying the number of Shares under a Matching Share Award or
Deferred Performance Shares (as applicable) by A/B where A is the number of complete calendar
months between 1 January 2010 and the date of the relevant event (but not exceeding 60) and B is
60.

15.4 Any Award and/or any Deferred Performance Shares over Shares in that Qualifying
Company which do not Vest as a result of the relevant event will lapse on the relevant event.

15.5 A Participant’s Personal Shares in that Qualifying Company will be released from the Plan in
full on or as soon as reasonably practicable after the date of the relevant event.

16. Change of Control of the Company

Except as otherwise provided in these Rules, the provisions of Rule 15 will apply with any
necessary changes in the event that any person (either alone or together with any person acting in
concert with him) obtains Control of the Company and the Shares comprised in Awards and Deferred
Performance Shares which may Vest will be Shares in both Qualifying Companies.

17. Compulsory Rollover on Internal Reorganisation 

17.1 Rules 15 and 16 will not apply if the purpose and effect of the change of Control or scheme of
arrangement is:

	(a)	 	to create a new holding company for the relevant Qualifying Company, such company having
substantially the same Shareholders and proportionate shareholdings as those of the Qualifying
Company immediately prior to the scheme of arrangement;
	 
	(b)	 	to give one Qualifying Company Control (directly or indirectly) of the other Qualifying
Company;
	 
	(c)	 	the person obtaining Control of the Company is one of the Qualifying Companies or a company
under the Control of one or both of them; or
	 
	(d)	 	the Company remains under the ultimate Control of the Shareholders of the Qualifying
Companies immediately prior to the relevant transaction affecting the Company.

17.2 If Rule 17.1 applies:

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	(a)	 	Awards and Deferred Performance Shares will not Vest on the relevant event;
	 
	(b)	 	an Award will instead be exchanged for an equivalent award over such shares as the Committee
determines appropriate;
	 
	(c)	 	Deferred Performance Shares will instead be exchanged for shares or cash and continue to be
subject to the Plan on such terms as the Committee determines appropriate; and
	 
	(d)	 	the Committee may make any modifications to the relevant performance conditions as it
determines appropriate.

17.3 The Committee may vary the application of this Rule 17 so that it applies to Awards and
Deferred Performance Shares over Shares in both Qualifying Companies or to Shares in only one
Qualifying Company.

17.4 Where Rule 17 applies, a Participant will not be treated as ceasing to be an employee of RE
PLC, RE NV or a member of the Group until he ceases to be employed by a company which is either the
relevant holding company or a subsidiary of the holding company (within the meaning of section 1159
of the Companies Act 2006).

17.5 For the avoidance of doubt, in Rules 15, 16 and 17, “Committee” means those people who were
members of the Committee immediately before the event by virtue of which the applicable Rule
applies.

18. Voluntary winding up

The provisions of Rule 15 will apply with such changes as may be necessary in the event that notice
is duly given of a resolution for a voluntary winding up of a Qualifying Company provided
that, all references in Rule 15 to the date of the relevant event will be treated as
references to the date on which notice is given for the voluntary winding-up of a Qualifying
Company.

19. Adjustment of awards

19.1 In the event of:

	(a)	 	any Capital Reorganisation; or
	 
	(b)	 	the implementation by a Qualifying Company of a demerger or the payment by a Qualifying
Company of a super-dividend which would otherwise materially affect the value of an Award
and/or Deferred Performance Shares,

the definition of Shares and the number of Shares in that Qualifying Company comprised in an Award
and/or Deferred Performance Shares may be adjusted in such manner as the Committee determines.

19.2 A Participant will in respect of his Personal Shares be treated in the same manner as any
other holder of Shares, except that (unless the Committee determines otherwise):

	(a)	 	in the event of a rights issue in respect of Personal Shares, the Participant (or other
nominee holding Personal Shares on his behalf) will be required to sell

Page 13

 

	 	 	sufficient rights nil-paid (at such time during the rights issue as the Committee thinks
fit) as will enable the Participant to acquire with the proceeds of sale the remainder of
the Participant’s rights entitlement PROVIDED THAT the Participant may elect to
take up in a personal capacity the rights that would have been sold (and such Shares will
not be subject to this Plan) subject to the Participant providing sufficient funds to give
effect to his obligation under the first part of this sub-paragraph (a);

	(b)	 	in the event of receipt of cash (other than dividends paid in the normal course) or
securities (other than Shares) in respect of Shares (on a demerger or other reorganisation of
the share capital of a Qualifying Company), the Committee will in its absolute discretion
determine whether such cash or securities will be released to the Participant or whether the
nominee holding Shares on behalf of the Participant will be required to apply that cash (or
the proceeds of sale of such securities), after allowing for tax thereon, in the purchase of
further Personal Shares to be held on behalf of the Participant.

20. Source of Shares

20.1 A Participant’s entitlement to Shares will be satisfied from purchases on a recognised stock
exchange. No new Shares will be issued or Shares transferred from treasury in connection with the
Plan.

21. Rights attaching to shares transferred pursuant to awards

21.1 All Shares transferred upon the Vesting of an Award and or Deferred Performance Shares will
rank pari passu in all respects with the Shares in issue at the date of Vesting except in respect
of any rights attaching to such Shares by reference to a record date prior to the date of Vesting.

21.2 Any Shares acquired by a Participant under this Plan will be subject to the articles of
association of the relevant Qualifying Company from time to time.

22. Administration and amendment 

22.1 The decision of the Committee will be final and binding in all matters relating to the Plan
including the exercise of any discretion under the Rules, the interpretation of the Rules and any
dispute relating to any matter in connection with the Rules.

22.2 The Committee may at any time discontinue the grant of further Awards or amend any of the
provisions of the Plan in any way it thinks fit and such changes may affect Awards already granted:
provided that:

	(a)	 	the Committee will not make any amendment that would materially prejudice the interests of
existing Participants except with their prior consent; and
	 
	(b)	 	no amendment to the advantage Participants may be made to:

	 	(i)	 	the definition of Executive;
	 
	 	(ii)	 	the maximum entitlement of a Participant under the Plan;
	 
	 	(iii)	 	the maximum limit on the number of Shares which can be awarded
under the Plan;

Page 14

 

	 	(iv)	 	the basis for determining a Participant’s entitlement to Shares
under the Plan and the terms on which they can be acquired;
	 
	 	(v)	 	the terms of Shares to be provided under the Plan;
	 
	 	(vi)	 	the adjustment provisions of Rule 19 of the Plan;

	 	 	without the prior approval of RE PLC in general meeting (and, if appropriate the prior
approval of RE NV in general meeting), except in the case of minor amendments 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, RE PLC,
RE NV or any member of the Group, or as otherwise permitted under these Rules; and
	 
	(c)	 	without prejudice to any provision of the Plan which provides for the lapse of an
Award, the Committee may not cancel an Award unless the Participant agrees in writing to such
cancellation.

23. General

Trustee funding

23.1 Any member of the Group may provide money to the trustees of any trust or any other person to
enable them or him to acquire Shares to be held for the purposes of satisfying Awards under the
Plan, or enter into any guarantee or indemnity for these purposes, to the extent not prohibited by
the provisions of the Companies Act 2006.

Discretionary nature of the Plan

23.2 The rights and obligations of a Participant under the terms and conditions of his office or
employment will not be affected by his participation in the Plan or any right he may have to
participate in the Plan.

23.3 Participation in this Plan does not imply any right to receive Awards on the same or any
other basis in any other year.

23.4 The terms of the Plan do not entitle the Participant to the exercise of any discretion in his
favour.

23.5 An individual who participates in the Plan waives all and any rights to compensation or
damages in consequence of the termination of his office or employment with any member of the Group
for any reason whatsoever insofar as those rights arise, or may arise, from his ceasing to have
rights under the Plan as a result of such termination or from the loss or diminution in value of
such rights. If necessary, the Participant’s terms of employment will be varied accordingly.

Changes to a Qualifying Company’s capital structure

23.6 The existence of any Award will not affect in any way the right or power of the Company, the
Qualifying Companies or their shareholders to make or authorise any or all adjustments,
recapitalisations, reorganisations or other changes in the Company’s or either of the Qualifying
Company’s capital structure, or any merger or consolidation of the Company or Qualifying Companies,
or any issue of shares,

Page 15

 

bonds, debentures, preferred or prior preference stocks ahead of or convertible into, or otherwise
affecting the Shares or the rights thereof, or the dissolution or liquidation of the Company or
Qualifying Companies or any sale or transfer of all or any part of their assets or business, or any
other corporate act or proceeding, whether of a similar character or otherwise.

Notices

23.7 Any notice or other document which has to be given to a Participant under or in connection
with the Plan may be delivered or sent by post to him at his home address according to the records
of his employing company or sent by email or fax to any email address or fax number according to
the records of his employing company or, in either case, such other address as may appear to the
Company to be appropriate.

23.8 Notices sent by post to a Participant in the UK or US will be deemed to have been given two
days after the date of posting. However notices sent to a Participant in other countries will be
deemed to have been given on the seventh day after the date of posting.

23.9 Notices sent by email or fax, in the absence of evidence to the contrary, will be deemed to
have been received on the day after sending.

23.10 Any notice or other document required to be given to the Company under or in connection with
the Plan may be delivered or sent by post to it at its registered office (or such other place or
places as the Committee may from time to time determine and notify to Participants) or sent by
email or fax to any email address or fax number notified to the sender.

No transfer of Awards or Deferred Performance Shares

23.11 A Participant may not transfer, assign, charge or otherwise dispose of any Awards or Deferred
Performance Shares, or any rights in respect of them, except on the transmission of Awards or
Deferred Performance Shares on the death of a Participant to his personal representatives or the
assignment of an Award or Deferred Performance Shares, with the prior consent of the Committee,
subject to any terms and conditions the Committee imposes. Any such attempted transfer will result
in the lapse of the Award or Deferred Performance Shares as applicable.

Awards non-pensionable

23.12 Awards and Dividend Equivalents under the Plan are not pensionable.

Payment of Stamp Duty

23.13 The Company, or where the Committee so directs any member of the Group, will pay the
appropriate stamp duty on behalf of Participants in respect of any transfer of Shares on the
Vesting of Awards and/or Deferred Performance Shares.

Data Protection

23.14 By accepting the grant of an Award, a Participant consents to the holding and processing of
personal data provided by him to the Company, a Qualifying Company or any member of the Group, and
any other persons for all purposes related to the

Page 16

 

operation of the Plan and acknowledges that the personal information may be transferred to, and
stored at, a destination outside the European Economic Area (“EEA”), and may also be processed by
staff operating outside the EEA who work for the Company, a Qualifying Company, a member of the
Group or for one of their service providers. The Company will take all steps reasonably necessary
to ensure that a Participant’s personal data is treated securely under appropriate contractual
arrangements.

Governing Law

23.15 This Plan will be governed by, and construed in accordance with, the laws of England.

Page 17

 

SCHEDULE 1

Performance Conditions

General

1. The following provisions shall apply to Awards granted under the Plan.

2. Performance targets applicable to the Performance Share Award will be measured after the end of
the 2012 financial year of the Qualifying Companies and the performance targets applicable to the
Matching Share Award will be measured after the end of the 2014 financial year of the Qualifying
Companies.

3. There are three separate measures: a Relative Total Shareholder Return measure (TSR Measure), a
Return on Invested Capital measure (ROIC Measure) and an Adjusted Earnings per Share measure (EPS
Measure).

4. The determination of vesting levels under the three measures is subject to the Cap.

The TSR Measure

5.1 The vesting of one third of the Performance Share Award is subject to the TSR ranking of Reed
Elsevier measured over the three financial years of the Qualifying Companies 2010 to 2012 and the
vesting of one third of the Matching Share Award is subject to the TSR ranking of Reed Elsevier
measured over the five financial years of the Qualifying Companies 2010 to 2014. In respect of each
type of award the portion subject to the TSR Measure is referred to as the “TSR Tranche”.

5.2 Three distinct comparator groups will be used — a Sterling Comparator Group, a Euro Comparator
Group and a US Dollar Comparator Group. The TSR performance of RE PLC ordinary shares (based on RE
PLC’s London listing) will be measured against the Sterling Comparator Group, the TSR performance
of RE NV ordinary shares (based on RE NV’s Amsterdam listing) will be measured against the Euro
Comparator Group; and the TSR performance of RE PLC ADRs and RE NV ADRs (based on the New York
listing) will be measured against the US Dollar Comparator Group. The TSR performance will be
measured separately against each comparator group and each ranking achieved will produce a payout,
if any, in respect of one third of the TSR Tranche. The proportion of the TSR Tranche that vests
will be the sum of the payouts achieved against the three comparator groups.

5.3 TSR will be measured in local currency.

5.4 Total Shareholder Return for any company shall be the percentage increase or decrease in the
market value of a share over the relevant performance period and shall take account of dividends
and other distributions paid in the course of that period (each such dividend being deemed to be
reinvested in the shares of each relevant company from the date of payment of the dividend to the
last day of the relevant performance period),

5.5 Each comparator group comprises companies which were selected on the following basis: -

Page 18

 

	 	•	 	they are included in a relevant market index as at 31 December 2009— FTSE100 for
the Sterling Comparator Group; Euronext100 and the DAX30 for the Euro Comparator
Group; and the S&P500 for the US Dollar Comparator Group;
	 
	 	•	 	are nearest in size to Reed Elsevier in terms of market capitalisation;

     excluding:

	 	•	 	companies with mainly domestic revenues (as they do not reflect the global nature
of the Qualifying Companies’ customer base);
	 
	 	•	 	those engaged in extractive industries (as they are exposed to commodity cycles);
and
	 
	 	•	 	financial services companies (as they have a different risk/reward profile).

Relevant listed global peers operating in businesses similar to those of Reed Elsevier not
otherwise included are added to the relevant comparator group.

Set out below are the comparators included in each group:

	 	 	 	 	 
	STERLING	 	 	 	US DOLLAR COMPARATOR
	COMPARATOR GROUP	 	EURO COMPARATOR GROUP	 	GROUP
	AGGREKO

	 	ACCOR
	 	3M
	ASTRAZENECA

	 	ADIDAS
	 	ADOBE SYSTEMS
	AUTONOMY CORP.

	 	AHOLD
	 	AGILENT TECHS.
	BAE SYSTEMS

	 	AIR LIQUIDE
	 	AIR PRDS. & CHEMS.
	BRITISH AIRWAYS

	 	AKZO NOBEL
	 	AMAZON.COM
	BRITISH AMERICAN
TOBACCO

	 	ALSTOM
	 	ANALOG DEVICES
	BUNZL

	 	ASML HOLDING
	 	APPLIED MATS.
	BURBERRY GROUP

	 	BASF
	 	AVON PRODUCTS
	COBHAM

	 	BMW
	 	BAXTER INTL.
	COMPASS GROUP

	 	CARREFOUR
	 	BECTON DICKINSON
	DMGT

	 	CHRISTIAN DIOR
	 	CATERPILLAR
	DIAGEO

	 	DAIMLER
	 	COLGATE-PALMOLIVE
	EXPERIAN

	 	DEUTSCHE POST
	 	CORNING
	GLAXOSMITHKLINE

	 	EADS
	 	CUMMINS
	INTERCONTINENTAL HOTELS

	 	ESSILOR INTL.
	 	DEERE
	IMPERIAL TOBACCO GROUP

	 	HEINEKEN
	 	DOW CHEMICAL
	INFORMA

	 	HERMES INTL.
	 	DUN & BRADSTREET
	INMARSAT

	 	K + S
	 	E. I. DU PONT DE NEMOURS
	INTERNATIONAL POWER

	 	LAFARGE
	 	EBAY
	INTERTEK GROUP

	 	LAGARDERE GROUPE
	 	EMERSON ELECTRIC
	INVENSYS

	 	LINDE
	 	FICO
	JOHNSON MATTHEY

	 	LVMH
	 	FORD MOTOR
	KINGFISHER

	 	MAN
	 	GENZYME
	NATIONAL GRID

	 	METRO
	 	H.J. HEINZ
	PEARSON

	 	MICHELIN
	 	ILLINOIS TOOL WORKS
	RECKITT BENCKISER GROUP

	 	PERNOD-RICARD
	 	JOHN WILEY
	REXAM

	 	PHILIPS ELTN. KONINKLIJKE
	 	JOHNSON CONTROLS
	ROLLS-ROYCE GROUP

	 	PORTUGAL TELECOM SGPS
	 	JUNIPER NETWORKS
	SABMILLER

	 	PPR
	 	LIFE TECHNOLOGIES
	SAGE GROUP

	 	RENAULT
	 	MCDONALDS
	SHIRE

	 	SAINT-GOBAIN
	 	MCGRAW-HILL
	SMITH & NEPHEW

	 	SAP
	 	MICRON TECHNOLOGY

Page 19

 

	 	 	 	 	 
	STERLING	 	 	 	US DOLLAR COMPARATOR
	COMPARATOR GROUP	 	EURO COMPARATOR GROUP	 	GROUP
	SMITHS GROUP

	 	SCHNEIDER ELECTRIC
	 	MOTOROLA
	THOMAS COOK GROUP

	 	SUEZ ENVIRONNEMENT
	 	NEWS CORP
	TUI TRAVEL

	 	THALES
	 	NIKE
	UNILEVER (LSE)

	 	THYSSENKRUPP
	 	NVIDIA
	UNITED BUSINESS MEDIA

	 	TNT
	 	PACCAR
	VODAFONE

	 	UNILEVER (AEX)
	 	PPG INDUSTRIES
	WOLSELEY

	 	VALLOUREC
	 	SPECTRA ENERGY
	WPP

	 	VEOLIA ENVIRONNEMENT
	 	TEXAS INSTS.
	 

	 	VOLKSWAGEN
	 	THOMSON REUTERS (NYSE)
	 

	 	WOLTERS KLUWER
	 	UNITED TECHNOLOGIES
	 

	 	 	 	YUM! BRANDS

5.6 Any changes in the comparators groups as a result of delisting or consolidation will be
treated in accordance with the methodology agreed by the Committee at its sole discretion from time
to time. In determining the methodology to be applied, the Committee will have due regard to market
practice, ensure a consistent application of the agreed methodology and be open and transparent
about the methodology applied.

5.7 The TSR ranking against the US Dollar Comparator Group will be calculated using the weighted
average of the TSRs of the RE PLC ADRs and the RE NV ADRs over the relevant period of measurement.

5.8 The number of Shares in each third of the TSR Tranche which are capable of Vesting will be
calculated as follows and will be added together to determine the total number of Performance
Shares and Matching Shares, within the TSR Tranche of each type of Award, which are capable of
Vesting:

	 	 	 	 	 	 	 	 	 
	 	 	Performance Share	 	Matching Share
	 	 	Awards —	 	Awards —
	 	 	performance	 	performance
	 	 	measured to the end	 	measured to the end
	 	 	of 2012	 	of 2014
	TSR ranking within	 	Vesting percentage of	 	Vesting percentage of
	the relevant TSR	 	each third of the TSR	 	each third of the TSR
	comparator group	 	Tranche	 	Tranche
	Below Median
	 	 	0	%	 	 	0	%
	Median
	 	 	30	%	 	 	30	%
	Upper quartile (top
25th percentile)
	 	 	100	%	 	 	100	%

5.9 Vesting is on a straight-line basis for ranking between median and upper quartile. 50% of the
Shares comprised in a Performance Share Award that are capable of Vesting will be designated as
Deferred Performance Shares and will only Vest as provided for by the Rules.

5.10 The averaging period applied for TSR measurement purposes for the Performance Share Award is
the six months before the start of the financial year of the Qualifying Companies in which the
Performance Share Award is granted and the last six months of the financial year of the Qualifying
Companies ending 31 December 2012. In respect of the Matching Share Award, the averaging period
applied for TSR measurement purposes is the six months before the start of the financial year of
the Qualifying Companies in which the Performance Share Award is

Page 20

 

granted and the last six months of
the financial year of the Qualifying Companies ending 31 December 2014.

The ROIC Measure

6.1 The Vesting of one third of the Performance Share Award and one third of the Matching Share
Award relates to the percentage return on invested capital of the combined businesses of the
Qualifying Companies. The vesting of the Performance Share Award relates to the percentage ROIC of
the combined businesses of the Qualifying Companies for the financial year of the Qualifying
Companies ending 31 December 2012 and is subject to the 2012 ROIC exceeding the 2009 ROIC,
calculated on the same basis. The Matching Share Award is subject to the percentage ROIC of the
combined businesses of the Qualifying Companies for the financial year of the Qualifying Companies
ending 31 December 2014. In respect of each type of award, the portion subject to the ROIC Measure
is referred to as the ‘ROIC Tranche’.

6.2 The following definitions are relevant for ROIC:

	 	(i)	 	Invested capital = arithmetic average of the opening and closing capital
employed stated before financing and tax balances for the combined businesses of the
Qualifying Companies adjusted for major acquisition timing for the financial year
with all cumulative amortisation and impairment charges for acquired intangible
assets and goodwill added back and excluding the gross up to goodwill in respect of
deferred tax liabilities established on the acquisition of intangible assets
retranslated at the average and hedge exchange rates applicable to the financial
year ended 31 December 2009. In addition, any exceptional restructuring and
acquisition related charges (net of tax) over the performance period are capitalised
for these purposes and the effect of changes in exchange rates and movements in the
net pension deficits are excluded.
	 
	 	(ii)	 	Return = adjusted operating profit for the combined businesses of the
Qualifying Companies before amortisation and impairment of acquired intangible
assets and goodwill, exceptional restructuring and acquisition related charges and
grossed up to exclude the equity share of taxes in joint ventures and further
adjusted to exclude movements in the net pension financing credit, after applying
the effective rate of tax used for adjusted earnings calculations and using exchange
rates to match those used in the calculation of invested capital.

In order to ensure that the performance score achieved is a fair reflection of underlying
business performance, the Committee retains discretion to determine the treatment of major
disposals and acquisitions that require Board approval. Any significant adjustments made to
the final performance score will be disclosed to shareholders.

Page 21

 

6.3 The number of Performance Shares and Matching Shares comprised in the ROIC Tranche of each type
of award which are capable of Vesting will be determined as follows:

	 	 	 	 	 
	Performance Share	 	Matching Share	 	 
	Awards — performance	 	Awards — performance	 	 
	measured in respect	 	measured in respect	 	Vesting percentage of
	of 2012	 	of 2014	 	ROIC Tranche
	ROIC

	 	ROIC	 	 
	Below 10.2%
	 	Below 10.7%
	 	0%
	10.2%
	 	10.7%
	 	60%
	11.2% or above
	 	12.7% or above
	 	100%

6.4 Vesting is on a straight-line basis for performance between the minimum and maximum levels.
50% of the Shares comprised in a Performance Share Award that are capable of Vesting will be
designated as Deferred Performance Shares and will only Vest as provided for by the Rules.

The EPS Measure

7.1 The vesting of one third of the Performance Share Award relates to the average growth in
Adjusted Earnings per Share at constant currencies (Adjusted EPS) of the Qualifying Companies over
the two financial years of the Qualifying Companies, 2011 and 2012. However, for any part to vest,
Average Adjusted EPS Growth must be positive over the three financial years of the Qualifying
Companies ending 31 December 2012. The vesting of one third of the Matching Share Award is subject
to Adjusted EPS over the two financial years 2013 and 2014. In respect of each type of Award, the
portion subject to the EPS Measure is referred to as the ‘EPS Tranche’.

7.2 The following definitions apply in respect of Adjusted EPS:

	 	(i)	 	Adjusted EPS Growth = the arithmetic mean of the growth in Adjusted EPS
at constant currencies achieved by the Qualifying Companies over a relevant
financial year;
	 
	 	(ii)	 	Average Adjusted EPS Growth = the average of the Adjusted EPS Growth over
the relevant period of measurement;
	 
	 	(iii)	 	Adjusted Earnings = adjusted reported earnings. Adjustments include
amortisation and impairment of acquired intangible assets and goodwill, exceptional
restructuring and acquisition related charges, gains/losses on business disposals
and other non-operating items, related tax effects and movements in deferred tax
balances not expected to crystallise in the near term. The Committee retains
discretion to adjust for changes in the net pension financing credit;
	 
	 	(iv)	 	Adjusted Earnings Per Share = Adjusted Earnings divided by the Number of
Shares

Page 22

 

	 	(v)	 	Number of Shares = weighted average number of shares in issue excluding
shares held in treasury or by the Reed Elsevier Group plc Employee Benefit Trust;
and
	 
	 	(vi)	 	Constant currencies = refers to measurement at constant rates of exchange
using the prior full year average and hedge rates.

The Committee has discretion to adjust this definition of Adjusted EPS to take account of any
changes in recognised accounting standards or practice, fiscal regime or capital structure, to
ensure consistent measurement and accountability.

7.3 The number of Performance Shares/Matching Shares in the EPS Tranche of each type of award which
are capable of Vesting will be determined as follows:

	 	 	 	 	 
	Performance Share Awards	 	Matching Share Awards	 	 
	— performance measured in	 	— performance measured in	 	Vesting percentage
	respect of 2011 and 2012	 	respect of 2013 and 2014	 	of EPS Tranche
	Average Adjusted EPS Growth
	 	Average Adjusted EPS Growth	 	 
	Below 5% per annum
	 	Below 7% per annum
	 	0%
	5% per annum
	 	7% per annum
	 	60%
	9% or above per annum
	 	13% or above per annum
	 	100%

7.4 Vesting is on a straight-line basis for performance between the minimum and maximum levels. 50%
of the Shares comprised in a Performance Share Award that are capable of Vesting will be designated
as Deferred Performance Shares and will only Vest as provided for by the Rules.

Determining satisfaction of targets at end of performance period

8.1 The performance period for the Performance Share Award are the financial years of the
Qualifying Companies 2010 to 2012, with performance being determined in respect of this Award after
the end of the 2012 financial year of the Qualifying Companies. The performance period for the
Matching Share Award are the financial years of the Qualifying Companies 2013 and 2014 in respect
of the EPS and ROIC Tranches of the Award and the five financial years ending 31 December 2014 in
respect of the TSR Tranche. Performance in respect of this Award will be determined after the end
of the 2014 financial year of the Qualifying Companies.

8.2 Following the end of the relevant Performance Period the Committee shall:

	 	(a)	 	calculate and confirm with the Auditors the Adjusted EPS and ROIC over the
relevant Performance Periods; and
	 
	 	(b)	 	arrange for a reputable provider of such information to calculate and report
to the Committee on the TSR performance. If at the end of the relevant Performance
Period, any of the companies in the comparator groups have undergone a change in
circumstances (such as delisting, the cessation of trading or merger with another
company) the Committee may determine the appropriate treatment for such companies in

Page 23

 

	 	 	 	accordance with its stated methodology for the purpose of determining its TSR and TSR
ranking.

Adjustments

9. The Committee may make such adjustments to the performance conditions applicable to outstanding
Awards as it considers appropriate to take account of any factors which are relevant in the opinion
of the Committee and in particular if there is
an event which causes it to consider that the performance conditions are no longer a fair measure
of performance. The amended performance conditions shall be at least as challenging as the one
originally set.

10. The Committee has discretion to adjust the definition or method of calculation of Adjusted EPS
and ROIC (or any other applicable term or measure) as set out in this Schedule to take account of
any changes in recognised accounting standards or practice, fiscal regime or capital structure, to
ensure consistent measurement and accountability.

11. Without prejudice to the generality of paragraphs 9, 10 and 12, the Committee may, in
consultation with the Auditors, make the following adjustments in relation to the calculations to
be carried out in accordance with this Schedule:

	 	(a)	 	any adjustments it considers appropriate if an event occurs giving rise to an
adjustment of Awards under Rule 19 of the Plan;
	 
	 	(b)	 	any adjustments it considers appropriate to the calculation of TSR for each
of the companies in the Comparator Group to take account of local market factors; and
	 
	 	(c)	 	any adjustments it considers appropriate if there is any modification in the
calculation of TSR or in relation to the relevant international accounting standard
used to calculate EPS or ROIC.

Overriding Power

12. In determining the level of vesting of any Award under the Plan, the Committee will take into
account the overall business performance of RE PLC, RE NV and the Group over the relevant
performance period and any other factors that it considers appropriate and may modify the vesting
of awards if it considers that such a modification would result in a fairer outcome.

Page 24

 

SCHEDULE 2

US Participants

This Schedule was adopted by the directors of Reed Elsevier Group plc on 21 April 2010.

The Rules of the Plan apply to Awards and Deferred Performance Shares granted to US Participants
under this Schedule subject to the modifications contained in this Schedule.

	 	(A)	 	In this Schedule, terms shall have the same meaning as in Rule 1 of the Rules
unless modified by this Schedule.
	 
	 	(B)	 	Retirement. Rule 1 is revised by the addition of the following definition of
“Retirement” for US Participants:
	 
	 	 	 	Retirement means, for purposes of the Vesting of Awards under this Schedule in
relation to a US Participant (including the Vesting of Deferred Performance
Shares), circumstances which the Committee determines on a case by case basis and
in its absolute discretion to constitute retirement (irrespective of whether or
not applicable retirement eligible criteria have been met);
	 
	 	(C)	 	US Participant. Rule 1 is revised by the addition of the following
definition of “US Participant”:
	 
	 	 	 	US Participant means a Participant who is subject to United States taxation by
reason of being a United States national, or resident in the United States for
United States tax purposes;
	 
	 	(D)	 	Release of Shares. Rules 8.2, 8.3, and 11.2 shall have the additional
requirement that the Shares shall be transferred to the US Participant by 15 March of
the calendar year following the calendar year in which Vesting occurs.
	 
	 	(E)	 	Dividend Equivalent — Cash Payment. Rule 12.1 shall have the additional
requirement that any cash payment to the US Participant under this Rule shall in all
instances be released no later than March 15 of the year following the year in which
Vesting occurs.
	 
	 	(F)	 	Dividend Equivalent — Shares in Lieu of Cash. Rule 12.3 shall have the
additional requirement that if the Committee determines that it shall satisfy an
entitlement to Dividend Equivalents arising in accordance with Rule 12.1 by delivering
Shares with an equivalent value, such Shares shall be transferred to the US
Participant within 30 days of the relevant date of Vesting.
	 
	 	(G)	 	Cessation of Employment (Approved Leavers — Rule 13.4). If Rule 13.4
applies to a US Participant, such US Participant’s Deferred

Page 25

 

	 	 	 	Performance Shares will Vest on the Termination Date and the Company shall procure
the transfer of Shares deliverable to the US Participant by 15 March of the
calendar year following the calendar year in which the Participant’s Termination
Date occurs.

	 	(H)	 	Cessation of Employment (Approved Leavers — Rule 13.5). If Rule 13.5
applies to a US Participant, such US Participant’s pro-rated Deferred Performance
Shares will Vest on the Termination date and the Company shall procure the transfer of
Shares deliverable to the US Participant by 15 March of the calendar year following
calendar year in which the Participant’s Termination Date occurs.
	 
	 	(I)	 	Cessation of Employment (Approved Leavers — Rule 13.6). If Rule 13.6
applies to a US Participant, the Company shall procure the transfer of the pro-rated
Shares deliverable to the US Participant by 15 March of the calendar year following
the calendar year in which the Award Vesting occurs.
	 
	 	(J)	 	Cessation of Employment (Death). If Rule 13.9 or 13.10 applies to a US
Participant, the Company shall procure the transfer of Shares deliverable to the US
Participant’s personal representative under Rule 13.9 or 13.10 (as the case may be) no
later than 15 March of the calendar year following the calendar year in which the US
Participant’s death occurs.
	 
	 	(K)	 	Change of Control/Voluntary Winding Up. In any instance in which Rules 15,
16 or 18 apply to a US Participant, the Company shall procure the transfer of Shares
deliverable to the US Participant by 15 March of the calendar year following the
calendar year in which Vesting occurs.
	 
	 	(L)	 	Application of Code Section 409A. Although neither the Committee nor any
member of the Group guarantees any particular tax treatment to a US Participant,
Awards and Deferred Performance Shares granted pursuant to this Schedule are intended
to be exempt from Section 409A of the Code under the exception for short-term
deferrals set forth in Section 1.409A-1(b)(4) of the United States Income Tax
Regulations (which requires, in the case of an employer with a fiscal year ending 31
December, that Shares in payment of an award be transferred to the US Participant no
later than March 15 of the calendar year following the calendar year in which the
Award or Deferred Performance Share is no longer subject to a substantial risk of
lapsing) and shall be limited, construed and interpreted in accordance with such
intent.

Page 26exv4w5

Exhibit 4.5

REED ELSEVIER GROUP PLC

RULES OF THE LEXIS-NEXIS

RISK & INFORMATION ANALYTICS GROUP

LONG TERM INCENTIVE PLAN

(Adopted by the

Reed Elsevier Group plc Remuneration Committee

on 24 June 2009)

 

 

THE REED ELSEVIER GROUP PLC

LEXIS-NEXIS RISK & INFORMATION ANALYTICS GROUP

LONG TERM INCENTIVE PLAN

1. Definitions

1.1 In this Plan, unless the context otherwise requires, the following words and expressions
shall have the following meanings, namely:

Adoption Date means 24 June 2009;

Award means a conditional right to acquire Shares without payment under the rules of this Plan
and for these purposes:

	(a)	 	Award —  Initial Number means the number of Shares under an Award prior to the application
of the performance condition in the Schedule; and
	 
	(b)	 	Award —  Maximum Number means the maximum number of Shares which could vest under an Award
upon application of the performance condition in the Schedule;

Board means the Board of Directors of the Company;

Capital Reorganisation means any variation in the share capital or reserves of a Qualifying
Company (including, without limitation, by way of capitalisation issue, rights issue,
sub-division, consolidation, or reduction);

the Company means Reed Elsevier Group plc;

Control has the meaning given to that word by section 840 of the Taxes Act;

Date of Grant means the date on which an Award is granted;

Dutch Share means an ordinary share in the capital of RE NV or shares representing those shares
following any Capital Reorganisation of RE NV;

Employment means employment with any member of the Group;

Executive means any employee of any member of RIAG whose terms of service require him to devote
substantially the whole of his working time to the affairs of RIAG and shall not include any
executive directors of a Qualifying Company;

Financial Year means an accounting reference period as defined in accordance with section 391
of the Companies Act 2006;

Grant Period means the period of 42 days commencing on any of the following:

	(a)	 	the release of the Qualifying Companies’ interim (half-yearly) and/or final results in any year;

2

 

	(b)	 	the release by the Qualifying Companies of any trading update or (if applicable to the
Qualifying Companies at the time) their quarterly results for any year; or
	 
	(c)	 	the day on which the Remuneration Committee resolves that exceptional circumstances exist
which justify the grant of Awards;

the Group means the Company and every company which is under the Control of the Company and
member of the Group shall be construed accordingly;

Market Value means:

	(a)	 	in the case of a UK Share, the closing middle market quotation for a UK Share as derived
from the Daily Official List of the London Stock Exchange on the Date of Grant; and
	 
	(b)	 	in the case of a Dutch Share, the closing price for a Dutch Share on the Amsterdam Stock
Exchange on the Date of Grant;

Participant means any current or former Executive who holds a subsisting Award (this shall
include, where the context permits, the legal personal representatives of a deceased
Participant);

Performance Period means the period of three Financial Years of the Company commencing with the
Financial Year in which the Date of Grant of an Award falls;

the Plan means this Reed Elsevier Group plc Lexis-Nexis Risk & Information Analytics Group Long
Term Incentive Plan as amended from time to time;

Qualifying Company means each of RE PLC and RE NV;

RE NV means Reed Elsevier NV;

RE PLC means Reed Elsevier PLC;

Redundancy means a dismissal of the Participant wholly or mainly attributable to the fact his
employer has ceased or intends to cease to carry on the business for the purposes of which the
Participant was employed by him, or to carry on that business in the place where the
Participant was so employed, or the fact that the requirements of that business for employees
to carry out work of a particular kind, or for employees to carry out work of a particular kind
in the place where the Participant was employed by his employer, have ceased or diminished or
are expected to cease or diminish;

the Remuneration Committee means the remuneration committee of the Board;

Retirement means cessation of Employment in circumstances which the Committee regards as
retirement (whether at normal retirement age or at any other age);

RIAG means those businesses that comprise the Risk & Information Analytics Group of the
Group’s Lexis-Nexis division;

Sale of Business means, subject to the Remuneration Committee determining otherwise, the sale
of all or substantially all of the assets of the business or division to

3

 

which the Participant is assigned or the sale of all or substantially all of the shares in the
company by which the Participant is employed in either case to a person who is not controlled
by Reed Elsevier Group plc;

Shares means a UK Share and/or a Dutch Share and Shareholder shall be construed accordingly;

Taxes Act means the Income and Corporation Taxes Act 1988;

the Trustees means the trustees for the time being of any appropriate employee benefit trust
established by the Company or any member of the Group from time to time for the benefit of
(among others) employees of the Group;

UK Share means an ordinary share in the capital of RE PLC or shares representing those shares
following any Capital Reorganisation of RE PLC;

US Participant means a Participant who is subject to United States taxation by reason of being
a United States national or resident in the United States for United States tax purposes.

Vesting Date means the date on which an Award vests under rule 4.2, or such earlier date on
which an Award vests in accordance with these rules; and

Vesting Shares means the number of Shares under an Award that actually vest upon application of
the performance condition imposed under rule 2.3.

1.2 Where the context permits the singular shall include the plural and vice versa and the
masculine shall include the feminine. Headings shall be ignored in construing the Plan.

1.3 References to any act of Parliament are to UK legislation and shall include any statutory
modification, amendment or re enactment thereof.

2. Grant of Awards

2.1 The Remuneration Committee may grant Awards to Executives selected by the Remuneration
Committee in its absolute discretion during a Grant Period. For the avoidance of doubt, no
Executive shall have the right or expectation to participate in the Plan in any Grant Period.

2.2 On granting Awards, the Company shall enter into a deed poll or take such other steps as
are necessary to evidence their legal enforceability.

2.3 Save as otherwise permitted in these rules, objective conditions must be satisfied prior to
the vesting of Awards. Subject to the Remuneration Committee’s power to impose different
conditions on the grant of an Award from time to time, such conditions shall, for Awards granted
in 2009 and thereafter, consist of the conditions set out in the Schedule to this Plan. There
will be no retesting of such conditions.

2.4 The grant of an Award and/or the delivery of Shares upon vesting thereof shall be
conditional on the Executive agreeing to comply with any arrangements specified by the Company
for the payment of taxation and social security contributions

4

 

(including without limitation the right to sell on his or her behalf sufficient Shares to
satisfy any taxation or social security contributions liability on his or her part for which
any member of the Group may be liable) in respect of an Award.

2.5 As soon as practicable after the Date of Grant the Remuneration Committee shall procure the
issue to each Executive of a letter in respect of the Award together with access to website
information, or such other information as the Remuneration Committee shall make available,
summarising the key terms of the Award.

2.6 Each Participant shall be required to acknowledge the right of the Remuneration Committee
to reduce or cancel Awards pursuant to its powers set out in the Schedule to this Plan.

2.7 Any Executive to whom an Award is granted may, by notice in writing to the Company given
within 30 days after the Date of Grant, renounce in whole or in part his or her rights under
the Award. In such a case, the Award shall, to the extent renounced, be treated as never
having been granted and (if already issued) the relevant certificate(s) shall be returned to
the Company for cancellation or amendment. No consideration shall be payable by the Company
for any such renunciation.

2.8 No Award shall be granted under the Plan later than the fifth anniversary of the
Adoption Date.

2.9 Every Award granted hereunder shall be personal to the Participant and, except to the
extent necessary to enable a personal representative to exercise the Award following the death
of a Participant, neither the Award nor the benefit thereof may be transferred, assigned,
charged or otherwise alienated. Any transfer of an Award otherwise than as permitted under
this rule 2.9 shall cause the Award to lapse.

3. Plan and Individual Limits

Any limit on the number of Shares granted under Awards to any Executive shall be set by the
Remuneration Committee from time to time.

4. Specific Provisions Relating to Awards

4.1 An Award consists of a right to receive a number of Shares (not exceeding the Award -
Maximum Number) following the Vesting Date.

4.2 The number of Shares that vest under an Award (that is, the Vesting Shares) shall be
determined by the Remuneration Committee based on the extent to which the performance
conditions imposed under rule 2.3 have been fulfilled or waived in accordance with these rules.
Such determination shall be made within 30 days of the preliminary announcement of results
for the last Financial Year in the Performance Period, or such earlier date as is required
under these rules (such date being the Vesting Date). The 30 day period shall be extended by
such period as the
Remuneration Committee determines in the event that the Company’s share dealing code (or the Model Code) would otherwise
prohibit a release of Shares.

4.3 Subject to rule 14.1, the Remuneration Committee shall make arrangements to transfer
Vesting Shares to Participants in satisfaction of their entitlements under Awards as soon as
practicable following the Vesting Date PROVIDED THAT, in all instances, Vesting Shares shall be
transferred to US Participants on or before March

5

 

15 of the year following the year in which such Shares have vested, in each case subject to any
sale of Shares in accordance with rule 2.4.

5. Entitlement to Notional Dividends

5.1 In addition to any Vesting Shares to which a Participant becomes entitled in relation to an
Award in accordance with the rules of this Plan, the Participant shall also be entitled to a
cash payment equal to the dividends (excluding any associated UK tax credit thereon) which
would have been paid on the Vesting Shares during the Performance Period.

5.2 The cash payment to which the Participant becomes entitled under rule 5.1:

	(a)	 	shall be calculated (in such manner as the Remuneration Committee thinks fit) by reference
to the currency of payment of the underlying dividend (and paid in such currency as the
Remuneration Committee thinks fit);
	 
	(b)	 	shall be calculated without any entitlement to interest (or other type of investment
return) in the period between the dividend payment date and the Vesting Date; and
	 
	(c)	 	shall be paid (subject to such deductions as are required by law) within one month of the
Vesting Date.

5.3 For the avoidance of doubt, the payment referred to in rule 5.1 does not represent an
entitlement to actual dividends on the underlying Shares, by reason of the Participant not
being beneficial owner of the Vesting Shares at that time.

5.4 For the avoidance of doubt, if a Participant’s Award lapses, any right of a
Participant to a cash payment under rule 5 shall automatically lapse on the date the related
Award lapses.

6. Vesting and Lapse of Awards — Cessation of Employment

6.1 Save as otherwise provided in these rules, in the event that the Participant ceases or will
cease to be an employee of a member of the Group:

	(a)	 	by reason of resignation, the Award shall lapse automatically on the date on which the
Participant gives notice of the termination of his Employment; and
	 
	(b)	 	for any reason where (a) does not apply, the Award shall lapse automatically on the date of
the cessation of Employment.

6.2 Save as otherwise provided in these rules, where a Participant ceases to be an employee of
a member of the Group by reason of:

	(a)	 	death;
	 
	(b)	 	long term disability;
	 
	(c)	 	Retirement;
	 
	(d)	 	Redundancy;

6

 

	(e)	 	Sale of Business; or
	 
	(f)	 	any other reason if the Remuneration Committee so decides in its absolute discretion

then an Award shall continue and shall vest following maturity of the Award (when the vesting level
of the Award will have been determined). The number of Shares in respect of which the Award vests
shall be multiplied by A/36 where A is the number of complete months from the commencement of the
Performance Period to the date of cessation of Employment PROVIDED THAT the Remuneration Committee
may in its absolute discretion determine that the Participant’s entitlement should not be scaled down or scaled down in part only (the extent of
scaling down being determined by the Remuneration Committee in its absolute discretion) and
PROVIDED FURTHER
THAT if the reason for cessation is the Participant’s death the Remuneration
Committee shall, and for all other reasons for cessation the Remuneration Committee may, release
Shares equal to the Award —  Initial Number, but subject to scaling down and the
exercise by the Remuneration Committee of its discretion as aforesaid. If the Remuneration
Committee releases Shares to a US Participant prior to maturity in accordance with this Rule, the
Remuneration Committee shall, subject to any necessary consents and subject to compliance by the US
Participant’s personal representative (in the case of the US Participant’s death) or by the US Participant,  as
the case may be, with the terms of the Plan, either allot and issue, or procure the transfer of
Shares to the US Participant’s personal representative or to the US
Participant (or to his nominee), as the case may be, within 30 days after the US
Participant’s date of death or Termination Date and in all instances on or before March 15 of the
year following the year in which the Termination Date has occurred.

6.3 For the purposes of rules 6.1 and 6.2 a female Participant shall not be treated as ceasing
to be an employee of a member of the Group if absent from work wholly or partly because of
pregnancy or confinement until she ceases to be entitled to exercise any statutory or
contractual right to return to work.

6.4 For the purposes of rules 6.1, 6.2 and 6.3 following an Award rollover pursuant to rule 12,
a Participant shall not be treated as ceasing to be employed by a member of the Group until he
ceases to be employed by a company which is either (i) the Acquiring Company (as defined in
rule 12) or (ii) a subsidiary of the Acquiring Company (within the meaning of section 1159 and
Schedule 6 of the Companies Act 2006).

7. Engagement in post-termination competitive activity

If a Participant:

	(a)	 	resigns from employment with a member of the Group, or is dismissed from employment with a
member of the Group in circumstances justifying summary termination or termination for “Cause” under any contract
that the Participant may
have with his Group employer, and
	 
	(b)	 	within twelve months of the date of termination of his employment (the Termination Date),
becomes an employee of a Competitor Company (as defined in this rule 7) and his employment with
that company results in his material involvement in one or more businesses that compete with
any

7

 

	 	 	business carried on by a member of the Group in which he had been involved in the
twelve months prior to the Termination Date,

he must pay to the Company, within seven days of written demand from the Company, the Relevant
Amount.

The Relevant Amount is an amount equal to A minus B minus C where:

A is an amount equal to the pre-tax gain realised by the Participant on the vesting of any
Award in the period of six months prior to the Termination Date. For these purposes, the gain
shall be the market value of the Shares on the Vesting Date of the Award, and such gain shall
be determined irrespective of whether the Participant has sold or retained the Shares so
acquired;

B is an amount equal to the tax and social security liabilities incurred by the Participant on
the vesting of the Award; and

C is any payment of the Claw-back Amount (as defined in clause 8.2 below) determined in
accordance with clause 8.1(c) under an Award which vested in the six months prior to the
Termination Date.

A Competitor Company shall mean any of those companies notified to the Participant from time to
time.

By accepting an Award, a Participant shall be bound by this rule 7 notwithstanding that (i) it
shall only be applicable after the release of Shares under rule 14, and (ii) whether or not the
essential terms of this rule 7 shall have been separately notified in writing by the Company to
each Participant.

8. Award determined on the basis of materially mis-stated data

8.1 If the Committee, within two years after the Vesting Date of an Award, considers in good
faith that the vesting of the Award was determined on the basis of materially misstated
financial or other data (the Incorrect Award), it shall, unless determined otherwise at the
sole discretion of the Committee, recover the Claw-back Amount (as defined in rule 8.2 below)
by taking one or more of the following actions:

	(a)	 	reduce any future grants of Awards by the Claw-back Amount (or the balance thereof);
	 
	(b)	 	reduce any outstanding unvested Awards by the Claw-back Amount (or the balance thereof);
and
	 
	(c)	 	require the individual to pay to the Company, within thirty days of a written demand from
the Company, the Claw-back Amount (or the balance thereof).

8.2 The Claw-back Amount shall be the difference in value between the Incorrect Award and the
Award that would have vested had the correct data been used as determined by the Committee
acting fairly and reasonably and may be expressed as a number of Shares or a monetary amount or
a combination thereof as the Committee considers appropriate. In determining the Claw-back
Amount, the Committee may take into account such matters as it sees fit including, but not
limited to:

8

 

	(a)	 	the difference between the number of Shares under the Incorrect Award and the number of
Shares the Committee considers should have vested had the correct data been used;
	 
	(b)	 	any gain made by the Participant on the sale of Shares comprised in the Incorrect Award;
	 
	(c)	 	any tax and / or dealing costs incurred by the Participant in connection with the Incorrect
Award, and
	 
	(d)	 	whether the Participant has made a payment pursuant to rule 7 which would take
account of Shares under an Incorrect Award.

9. General Offer

9.1 If any person (either alone or together with any person acting in concert with him) obtains
Control of a Qualifying Company as a result of a general offer to acquire the whole of the
share capital of that Qualifying Company (other than those shares which are already owned by
him and/or any person acting in concert with him), in respect of Shares in that Qualifying
Company which are under the Award (but not in respect of Shares in the other Qualifying Company
which are or may be under the Award), Awards shall vest if and to the extent that the
performance conditions imposed under rule 2.3 are met over the foreshortened period ending on
the date of change of Control (subject to modification if the Committee considers that the
performance conditions would be met to a greater or lesser extent at the end of the Performance
Period).

9.2 Any Shares which vest pursuant to rule 9.1 shall be released within 14 days of the change
of Control. Such vesting shall be without prejudice either to the operation of rule 12 or to
the continuance of the Award in respect of Shares in the other Qualifying Company which are or
may be under the Award.

9.3 The provisions of rules 9.1 and 9.2 shall not apply in the event that either:

	(a)	 	the person obtaining Control of a Qualifying Company is the other Qualifying Company or a
company under the Control of the other Qualifying Company; or
	 
	(b)	 	the Qualifying Company remains under the ultimate Control of the Shareholders of RE PLC or
RE NV immediately prior to the relevant transaction affecting the Qualifying Company.

9.4 The provisions of rules 9.1 and 9.2 shall apply mutatis mutandis in the event that any
person (either alone or together with any person acting in concert with him) obtains Control of
the Company PROVIDED THAT Awards shall not vest under this rule 7.4 in the event that either:

	(a)	 	the person obtaining Control of the Company is RE PLC or RE NV or a company under the
Control of one or both of them; or
	 
	(b)	 	the Company remains under the ultimate Control of the Shareholders of RE PLC or RE NV
immediately prior to the relevant transaction affecting the Company.

9

 

In the event Awards vest under this rule 9.4, Awards over Shares in both Qualifying Companies
shall vest.

10. Scheme of Arrangement

10.1 If a court shall direct that a meeting of the holders of UK Shares be convened pursuant to
section 899 of the Companies Act 2006 for the purposes of considering a scheme of arrangement of
RE PLC then a Participant’s Awards in respect of UK
Shares (without prejudice to the continuance of the Award in respect of Dutch Shares) shall
vest if and to the extent that the performance conditions imposed under rule 2.3 are
met over the foreshortened period ending on the date on which the scheme of arrangement is
sanctioned by the court (subject to modification if the Committee considers that the
performance conditions would be met to a greater or lesser extent at the end of the Performance
Period).

10.2 Without prejudice to the operation of rule 12, Awards in respect of UK Shares shall not
without the consent of the Committee vest under the foregoing provisions if the purpose and
effect of the scheme of arrangement is to create a new holding company for the Company or RE
PLC, such company having substantially the same shareholders and proportionate shareholdings as
those of the Company or RE PLC (as the case may be) immediately prior to the scheme of
arrangement.

10.3 The provisions of rules 10.1 and 10.2 shall apply mutatis mutandis to Awards in respect of
Dutch Shares in the event that RE NV is subject to a legal process under Dutch law which is
considered by the Committee to be broadly equivalent to section 899 of the Companies Act 2006.

10.4 Shares that vest and are transferred to a US Participant pursuant to rule 10.1 shall in
all instances be transferred to the US Participant on or before March 15 of the year following
the year in which they have vested.

11. Voluntary Winding up

The provisions of rules 9.1, 9.2 and 9.4 shall apply mutatis mutandis in the event that notice
is duly given of a resolution for a voluntary winding up of a Qualifying Company PROVIDED THAT,
for the purposes of this rule 11, all references in rule 9 to a change of Control or to an
offer becoming unconditional in all respects shall be treated as references to the date on
which notice is given for the voluntary winding-up of a Qualifying Company.

12. Award Rollover

12.1 If any company (the Acquiring Company) obtains Control of a Qualifying Company or of the
Company as a result of an event referred to in rules 9 or 11, each Participant, may at any time
within one month of the change of Control, with the agreement of the Acquiring Company, release
any Award in respect of Shares in that Qualifying Company which has not lapsed (the Old Right)
in consideration of the grant to him of a new right (the New Right) which in the opinion of the
Committee and the Acquiring Company is equivalent to the Old Right but relates to shares in a
different company (whether the Acquiring Company itself or another company in its group). The
operation of this rule 12 on a change of Control of one Qualifying

10

 

Company shall not affect the continuance of the Award in respect of Shares in the other
Qualifying Company which are or may be subject to the Award.

12.2 Subject to rule 12.3, any performance condition imposed under rule 2.3 in relation to the
Old Right shall not apply to the New Right unless the Committee and the Acquiring Company
consider that it should so apply (subject to such modifications as they see fit).

12.3 In the event that either:

	(a)	 	the person obtaining Control of the Company or Qualifying Company is RE PLC or RE NV or a
company under the control of one or both of them; or
	 
	(b)	 	the Company or Qualifying Company remains under the ultimate control of the Shareholders of
RE PLC or RE NV immediately prior to the relevant transaction affecting the Company or
Qualifying Company,

Awards shall automatically be exchanged for New Rights as set out in rule 12.1 and the
performance conditions imposed under rule 2.3 shall continue to apply (subject to such
modifications as the Committee sees fit).

12.4 Except to the extent consistent with the requirements of Section 409A of the United States
Internal Revenue Code (Code Section 409) for the deferral of compensation without penalty or
additional tax, or unless an exception to the application of Code Section 409A applies, rule 12
shall not apply to any Award held by a US Participant if, at the time the election provided by
rule 10 is available to the US Participant, the Award has vested. In such a case, the rules of
the Plan shall apply to the Award without regard to rule 12.

13. Adjustment of Awards

In the event of:

	 	(i)	 	any Capital Reorganisation; or
	 
	 	(ii)	 	the implementation by a Qualifying Company of a demerger or the payment by a
Qualifying Company of a super-dividend which would otherwise materially affect the
value of an Award

the definition of Shares and the number of Shares comprised in an Award in relation to the
Shares in that Qualifying Company may be adjusted in such manner as the Committee may
determine: PROVIDED THAT:

	(a)	 	no adjustment shall take effect without the prior approval of, in respect of an Award under
which Shares are to be transferred, the person holding the Shares to which the Award relates,
(such approval not to be unreasonably withheld);
	 
	(b)	 	no adjustment shall be made pursuant to this rule (other than on a capitalisation issue)
unless and until the auditors for the time being of the Company (acting as experts not
arbitrators) shall have confirmed in writing to the Committee that such adjustment is in their
opinion fair and reasonable.

11

 

14. Transfer of Shares on vesting of Awards

14.1 Subject to any necessary consents and to compliance by the Participant with the terms of
the Plan, not later than 30 days after the Vesting Date, each Qualifying Company shall procure
the transfer of Shares to the Participant (or to his nominee). Where the Shares are transferred
to a nominee of the Participant, the Participant shall
remain the beneficial owner of the Shares. Shares may not be issued or transferred from
treasury to satisfy Awards.

14.2 Subject to rule 17.1 below, the Company may provide funds to the Trustees to enable the
Trustees to purchase existing UK Shares for the purpose of the Plan, provided that no funds may
be provided to enable the Trustees to acquire UK Shares if such an acquisition would result in
the Trustees holding more than 5% of the ordinary share capital of the Company in issue at that
time.

15. Rights Attaching to Shares Transferred Pursuant to Awards

15.1 All Shares transferred upon the vesting of an Award shall rank pari passu in all respects
with the Shares in issue at the Vesting Date save as regards any rights attaching to such
Shares by reference to a record date prior to the Vesting Date.

15.2 Any Shares acquired on vesting of Awards shall be subject to the articles of association
of the relevant Qualifying Company from time to time.

16. Administration and Amendment

The decision of the Committee shall be final and binding in all matters relating to the Plan
and the Board may at any time discontinue the grant of further Awards or amend the rules of the
Plan in any way it thinks fit: PROVIDED THAT:

	(a)	 	the Committee shall not make any amendment that would materially prejudice the interests of
existing Participants except with their prior written consent; and
	 
	(b)	 	without prejudice to any provision of the Plan which provides for the lapse of an Award,
the Committee may not cancel an Award unless the Participant agrees in writing to such
cancellation.

17. General

17.1 Any member of the Group may provide money to the trustees 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 not prohibited by section 678 of
the Companies Act 2006.

17.2 The rights and obligations of a Participant under the terms and conditions of his office
or employment shall not be affected by his participation in the Plan or any right he may have
to participate in the Plan. An individual who participates in the Plan waives all and any
rights to compensation or damages in consequence of the termination of his office or employment
with any company 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 Award under the Plan as a
result of such termination or from

12

 

the loss or diminution in value of such rights or entitlements. If necessary, the
Participant’s terms of employment shall be varied accordingly.

17.3 The existence of any Award shall not affect in any way the right or power of the
Company or its shareholders to make or authorise any or all adjustments, recapitalisations,
reorganisations or other changes in the Company’s capital structure, or any merger or
consolidation of the Company, or any issue of shares, bonds, debentures, preferred or prior
preference stocks ahead of or convertible into, or otherwise affecting the Shares or the rights
thereof, or the dissolution or liquidation of the Company or any sale or transfer of all or any
part of its assets or business, or any other corporate act or proceeding, whether of a similar
character or otherwise.

17.4 Any notice or other document required to be given under or in connection with the Plan may
be delivered to a Participant or sent by post to him at his home address according to the
records of his employing company or such other address as may appear to the Company to be
appropriate. Notices sent by post shall be deemed to have been given on the day following the
date of posting. Any notice or other document required to be given to the Company under or in
connection with the Plan may be delivered or sent by post to it at its registered office (or
such other place or places as the Committee may from time to time determine and notify to
Participants).

17.5 Benefits under the Plan shall not be pensionable.

17.6 The Company, or where the Committee so directs any member of the Group, shall pay the
appropriate stamp duty on behalf of Participants in respect of any transfer of Shares on the
exercise of Awards.

17.7 These rules shall be governed by, and construed in accordance with, the laws of England.

18. Application of Code Section 409A.

Although neither the Remuneration Committee nor any member of the Group guarantees any
particular tax treatment to a US Participant, Awards granted to US Participants pursuant to the
Plan are intended to be exempt from Code Section 409A and shall be limited, construed and
interpreted in accordance with such intent.

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SCHEDULE

Performance conditions attaching to awards granted

in 2009

Subject to the additional conditions set out herein, the performance conditions applicable to
Awards are:

	(a)	 	the achievement of Total Adjusted Operating Profit, adjusted for Southside, over the
Performance Period 2009-2011 of the combined RIAG businesses (including ChoicePoint) as
approved by the Remuneration Committee as at the date of adoption of these Rules;
	 
	(b)	 	the achievement of the Return on Investment for the ChoicePoint acquisition, measured at
the end of the Performance Period 2009-2011 as approved by the Remuneration Committee as at the
date of adoption of these Rules.

Each condition shall have equal weighting in accordance with the payout scale set out below:

Payout Scale

	 	 	 

	Achievement
(% of Target)	 	Payout
 (% of Target Award)
	Below 90%
	 	0%
	90%
	 	50%
	91%
	 	55%
	92%
	 	60%
	93%
	 	65%
	94%
	 	70%
	95%
	 	75%
	96%
	 	80%
	97%
	 	85%
	98%
	 	90%
	99%
	 	95%
	100%
	 	100%
	101%
	 	125%
	102%
	 	150%
	103%
	 	175%

Straight-line interpolation will apply between all points on the above scale.

The individual metrics will be uncapped but the overall payout is capped at 189% of
“target”.

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The following provisions apply for the purpose of determining (i) whether the conditions set
out in this Schedule have been satisfied, and accordingly (ii) the number of Vested Shares as a
percentage of the Award — Initial Number.

1. Definitions

In this Schedule, terms shall have the same meaning as in Rule 1 of the Rules and, unless the
context otherwise requires, the following additional terms shall have the following meanings,
namely:

Accounts means the consolidated accounts of each Qualifying Company for a Financial Year drawn
up in accordance with International Financial Reporting Standards (applied consistently);

Accounts Date means the date on which Accounts are published or, if the Remuneration Committee
so determines, the date of the preliminary announcement of final results for a Financial Year;

After-Tax Adjusted Operating Profit means the Total Adjusted Operating Profit, excluding
interest costs, plus the acquisition-related synergies (per the Acquisition Model), and then
subtracting 33% for tax;

Auditors means the auditors for the time being of each Qualifying Company;

Investment Base means the amount calculated by adding the total consideration paid for
ChoicePoint to the debt acquired, the regulatory review expenses, and the integration expenses
incurred during the Performance Period;

Return on Investment means After-Tax Adjusted Operating Profit for ChoicePoint for the
Performance Period divided by the Investment Base;

Special Committee means the CEO LNG, SVP Finance — LNG and SVP Finance — LN RIAG; and

Total Adjusted Operating Profit means the adjusted operating profit before amortisation of
acquired intangible assets and goodwill impairment, exceptional restructuring and acquisition
related costs. Any variance from budgeted development and launch expenditure will be excluded
for the purposes of determining performance.

2. Determining Satisfaction Of Targets At End Of Performance Period

At the Accounts Date of the Company following the expiry of the Performance Period, the Special
Committee shall calculate and verify with the Auditors the Total Adjusted Operating Profit and
the Return on Investment as defined in this Schedule.

3. Shareholding Condition

3.1 Notwithstanding satisfaction of the performance conditions, an Award shall not vest unless the
Remuneration Committee is satisfied that the Participant complies with the Remuneration Committee’s
shareholding guidelines for senior executives as at the Vesting Date.

15

 

3.2 For the purposes of the condition in paragraph 3.1 the Remuneration Committee shall have
discretion to determine all matters relating to the satisfaction of the said condition,
including the share price to be taken into account for these purposes.

4. Adjustments

4.1 The Remuneration Committee may make such adjustments to the performance conditions in this
Schedule as it considers appropriate to take account of any factors which are relevant in the
opinion of the Remuneration Committee.

4.2 Without prejudice to paragraph 4.1, the Remuneration Committee may, in consultation
with the Auditors, make appropriate adjustments in relation to the calculations to be
carried out in accordance with this Schedule.

5. Overriding Power

The Remuneration Committee may in its absolute discretion at any time reduce or cancel Awards
previously granted to Participants based on the Remuneration Committee’s assessment of (a) whether the achieved
level of performance is a fair reflection of the progress of the RIAG business
having regard to underlying revenue growth, cash generation, return on capital and any significant
changes in inflation, and (b) individual performance of a Participant. This power shall apply even
if the Performance Conditions have been or are expected to be met.

16

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