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Exhibit 4.1  

        PRUDENTIAL PLC  

 THE PRUDENTIAL GROUP PERFORMANCE SHARE PLAN  

Approved by the Company in general meeting on

18 May 2006 and amended by the board of

directors on 29 September 2006  

 
  
 

    THE PRUDENTIAL GROUP PERFORMANCE SHARE PLAN    
    

The
Company and any of its Subsidiaries may nominate any of their employees to participate in the Plan and the Subsidiaries may bear the associated costs of any such participation as determined by the
Company. 

	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 the date of the adoption of the Plan by the Company in general meeting; 

Average Market Value means in relation to a Share, the average of the Market Value of such a Share during the calendar year preceding the Date of Grant
(calculated on such appropriate basis as the Committee may determine); 

Award Letter means the document setting out the rights and obligations attaching to a Performance Share Award and which may incorporate by reference the
rules of the Plan; 

Cause means (i) gross misconduct; (ii) gross negligence; (iii) insubordination; (iv) conviction of a criminal offence (other
than a road traffic offence not subject to a custodial sentence); (v) continued substantial non-performance of duties; (vi) breach of any non-competition or
non-solicitation provision in any agreement to which the Participant is a party; or (vii) any other ground which would entitle the employing company to terminate the Participant's
employment summarily and without notice under the terms of the employment contract or under the law of the jurisdiction applicable to the Participant's employment at the time of such termination; 

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

the Company means Prudential plc; 

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

Date of Grant means the date on which a Performance Share Award is granted; 

Dealing Day means any day on which the London Stock Exchange is open for business; 

Employee means any employee or executive director of a member of the Group whose terms of service require him to devote substantially the whole of his
working time to the businesses of the Group and who has not given or been given notice terminating his employment; 

Executive Share Scheme means any employee share scheme adopted by the Company under which individuals may be selected for participation at the
discretion of the body administering that scheme; 

Financial Year means an accounting reference period of the Company as defined in accordance with section 224 of the Companies Act 1985; 

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

	(a)
	the
Adoption Date;

	(b)
	the
day on which the Company makes an announcement of its results for the last preceding financial year, half year, quarter or other period; or

	(c)
	any
day on which the Committee resolves that exceptional circumstances exist which justify the grant of Performance Share Awards and for the avoidance of doubt the hire of a new
Employee may fall to be treated as such an exceptional circumstance; 

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the Group means the Company and the Subsidiaries and member of the Group shall be construed accordingly; 

Market Value means, in relation to a Share on any Dealing Day, the middle market quotation for a Share as derived from the Daily Official List of the
London Stock Exchange for that Dealing Day; 

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

Performance Conditions mean the conditions specified by the Committee at the Date of Grant in relation to a Performance Share Award or as amended from
time to time; 

Performance Period means unless foreshortened pursuant to Rules 9, 11, 12, 13 or 16 of this Plan a period of three years commencing on the Start
Date during which the Performance Condition is to be satisfied or such longer period as the Committee may specify for specific Participants; 

Performance Share Award means an award granted in the form referred to in Rule 2.2 of this Plan; 

the Plan means the rules of this Plan as amended from time to time; 

Share Plan Committee means the committee established by the board of the Company to administer the Plan; 

Shares means fully paid ordinary shares in the capital of the Company (or shares representing those shares following any reorganisation of the share
capital of the Company); 

Start Date means in relation to a Performance Share Award the beginning of the Financial Year in which the Award is granted or such later date as may be
specified by the Committee on the Date of Grant; 

Subsidiary means any subsidiary of the Company within the meaning of section 736 of the Companies Act 1985 over which the Company has Control; 

Taxes Act means the Income and Corporation Taxes Act 1988; 

Treasury Shares means any Shares held as treasury shares by the Company within the meaning of section 162A(3) of the Companies Act 1985; 

Trustee means the trustee from to time of any employee trust which the Committee selects to grant and/or satisfy Performance Share Awards; 

Vesting means becoming entitled to the payment of cash or the issue or transfer of Shares pursuant to a Performance Share Award and  Vest shall be
construed accordingly; and 

Vesting Date means the date of the determination by the Committee under rule 7 of: 

	(a)
	the
extent to which the Performance Conditions attaching to a Performance Share Award have been satisfied; and

	(b)
	the
number of Shares (if any) in respect of which a Performance Share Award shall be released. 

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 shall include any statutory modification, amendment or re-enactment thereof. 

	2.
	GRANT OF PERFORMANCE SHARE AWARDS

2.1    The
Committee may, during a Grant Period, grant Performance Share Awards to Employees selected by the Committee in its absolute discretion. 

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2.2    The
Committee may grant a Performance Share Award in the form of a nil cost option, a right to acquire Shares, a conditional allocation of Shares or in such other form as may confer
on the Participant an equivalent economic benefit. 

2.3    Nothing
in this Plan or in any Employee's contract of employment shall be construed as giving to any Employee a right to be considered for participation in the Plan or to receive the
grant of any Performance Share Award. 

2.4    The
grant of a Performance Share Award and/or the delivery of Shares upon release thereof shall be conditional on the Participant agreeing to comply with any arrangements specified by
the Company for the payment of taxation and any social security contributions in respect of the Performance Share Award (including without limitation the right of the Company to arrange the sale on
his behalf of sufficient Shares to satisfy any taxation or social security liability on his part which the Company or any member of the Group may be liable to withhold). 

2.5    A
Participant shall not have any beneficial ownership of the Shares which are the subject of a Performance Share Award granted to him, and accordingly shall not have any right to any
dividends or voting rights attaching to the Shares save as set out in Rule 6 below. 

2.6    A
Participant shall not be required to pay for the grant of a Performance Share Award. 

2.7    An
Employee to whom a Performance Share 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
rights under the Performance Share Award. 

2.8    As
soon as practicable after the Date of Grant the Committee shall procure the issue to a Participant of an Award Letter in respect of the Performance Share Award. The Award Letter
shall specify, inter alia, the following: 

	(a)
	the
dates on which the relevant Performance Period shall start and end;

	(b)
	the
details of the Performance Conditions imposed in accordance with Rule 3.1 and the manner in which the Performance Conditions will determine the number of Shares that may be
acquired on Vesting of the Performance Share Award; and

	(c)
	whether
a Performance Share Award shall be enhanced in accordance with Rule 6. 

2.9    No
Performance Share Award shall be granted under the Plan later than the tenth anniversary of the Adoption Date. 

2.10    Every
Performance Share Award granted hereunder shall be personal to the Participant and, except in the event of the death of a Participant, neither the Performance Share Award nor
the benefit thereof may be transferred, assigned, charged or otherwise alienated Any transfer or exercise otherwise than as permitted under this Rule 2.10 shall cause the Performance Share
Award to lapse. 

	3.
	PERFORMANCE CONDITIONS

3.1    Each
Performance Share Award shall be subject to one or more Performance Conditions which will determine the number of Shares which the Participant will be entitled to acquire on
Vesting of the Performance Share Award. The Committee may impose different Performance Conditions for Performance Awards granted to different Participants in the same Financial Year and to
Participants in different Financial Years. 

3.2    The
Performance Conditions may be amended after the Date of Grant if: 

	(i)
	those
circumstances which prevailed at the Date of Grant and which were relevant to the Performance Conditions when they were originally imposed have subsequently changed; and 

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	(ii)
	the
Committee is satisfied that any such amended Performance Conditions would be a fairer measure of performance and the Committee reasonably considers that such amended Performance
Conditions are consistent with and no more or less demanding to satisfy than the original Performance Conditions.

 

	4.
	PLAN LIMITS

4.1    No
Performance Share Award shall be granted on any day to the extent that the result of that grant would be that: 

	(a)
	the
aggregate number of Shares that could be issued on Vesting or release of that Performance Share Award when added to the number of Shares that:

	(i)
	could
be issued on the exercise, vesting or release of any other subsisting Performance Share Award granted during the preceding ten years under the Plan;

	(ii)
	have
been issued on Vesting or release of any subsisting Performance Share Award granted during the preceding ten years under the Plan;

	(iii)
	could
be issued pursuant to any other awards, options or rights granted during the preceding ten years under any other employee share scheme adopted by the Company; and

	(iv)
	have
been issued pursuant to any other awards, options or rights granted during the preceding ten years under any other employee share scheme adopted by the Company 

would
exceed 10 per cent of the ordinary share capital of the Company from time to time in issue; 

	(b)
	the
aggregate of the number of Shares that could be issued on Vesting or release of that Performance Share Award when added to the number of Shares that:

	(i)
	could
be issued on Vesting or release of any other subsisting Performance Share Award granted during the preceding ten years under the Plan;

	(ii)
	have
been issued on Vesting or release of any subsisting Performance Share Award granted during the preceding ten years under the Plan;

	(iii)
	could
be issued pursuant to any other awards, options or rights granted during the preceding ten years under any other Executive Share Scheme adopted by the Company; and

	(iv)
	have
been issued pursuant to any other awards, options or rights granted during the preceding ten years under any other Executive Share Scheme adopted by the Company 

would
exceed 5 per cent of the ordinary share capital of the Company from time to time in issue. 

4.2    Where
Shares are transferred or to be transferred from treasury under this Plan or any other employees' share scheme established by the Company and for as long as it remains best
practice to do so in accordance with institutional shareholder guidelines, such Shares shall be treated, for the purpose of this rule 4, as Shares that are issued or issuable. 

	5.
	INDIVIDUAL LIMITS

5.1    A
Performance Share Award shall not be granted to an Employee if such grant would cause the total Average Market Value of the maximum number of Shares that may be acquired upon
exercise or release of the Performance Share Award (as measured at the Date of Grant) when aggregated with the total Average Market Value of the maximum number of Shares that may be acquired pursuant
to any other Performance Share Award granted to the Employee under the Plan or any award granted under the Prudential Business Unit Performance Plan in the same Financial Year, to exceed 3.5 times the
Employee's annual basic salary in respect of his employment with the Group as at the Date of Grant. 

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5.2    In
case of an Employee who is working and based in the United States or such other jurisdiction as the Committee determines at the Date of Grant, the limit referred to in
Rule 5.1 above shall be 5.5 times the Employee's annual basic salary in respect of his employment with the Group as at the Date of Grant. 

	6.
	DIVIDENDS

If
a dividend is payable on Shares and the Committee has so determined at the Date of Grant of a Performance Share Award, the Performance Share Award shall be enhanced by increasing the number of
Shares comprised in the Performance Share Award by an additional number of Shares having a Market Value at the time the dividend is paid equivalent to the gross or net of tax value of the dividend and
the enhanced Performance Share Award shall be exercisable in accordance with these rules on the same basis as the original Performance Share Award, unless the Committee has determined otherwise at the
Date of Grant. 

	7.
	VESTING OF PERFORMANCE SHARE AWARDS

7.1    Save
as otherwise permitted in the rules of the Plan, a Performance Share Award shall only Vest if the Participant remains an employee of a member of the Group until the Vesting Date. 

7.2    Notwithstanding
rule 7.1, a Performance Share Award shall not Vest unless the Committee is satisfied that the underlying financial performance of the Company during the
Performance Period is such as to justify the Vesting of such award. 

7.3    As
soon as reasonably practicable after the end of the last Financial Year of the Performance Period the Committee shall determine whether and the extent to which the Performance
Conditions imposed under Rule 3.1 and the requirement of Rule 7.2 have been satisfied and shall notify a Participant of its determination. 

7.4    Save
as otherwise provided in these Rules, if a Performance Share Award Vests, the Participant shall be entitled to be issued or transferred such number of Shares as is determined by
the Committee in accordance with the Performance Conditions imposed under Rule 3. 

	8.
	LAPSE OF PERFORMANCE SHARE AWARDS

8.1    Notwithstanding
any other provisions in these rules, a Performance Share Award shall lapse automatically on the earliest of: 

	(a)
	the
Participant being declared bankrupt or entering into any general composition with or for the benefit of his creditors, including a voluntary arrangement under the Insolvency Act
1986;

	(b)
	the
dismissal of the Participant for Cause;

	(c)
	the
date on which the Participant ceases to be an Employee for any reason mentioned in Rule 9.2 below unless the Committee exercises its discretion under Rule 9 to allow
the Performance Share Award to Vest or be retained;

	(d)
	the
date on which the Participant ceases to be an Employee for any reason other than one referred to in Rule 9.2 below whether such cessation is lawful or unlawful;

	(e)
	the
date on which the Committee determines that the Performance Conditions for a Performance Period have not been satisfied or the underlying performance of the Company does not
justify vesting; and

	(f)
	following
a general offer for the Company, scheme of arrangement, winding-up of the Company or demerger in accordance with Rule 11.4, 12.2, 12.6, 13.2 and 16.2
below. 

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	9.
	CESSATION OF EMPLOYMENT

9.1    Save
as otherwise provided in Rule 9.2 if a Participant ceases to be an Employee before the Vesting Date, the Performance Share Award shall lapse on the date of such cessation. 

9.2    If
a Participant ceases to be an Employee before the Vesting Date by reason of: 

	(a)
	death;

	(b)
	injury
or disability (as determined by the Committee);

	(c)
	retirement
at or after the date on which he is bound or expected to retire under his contract of employment;

	(d)
	his
employing company ceasing to be a member of the Group;

	(e)
	the
business (or part of the business) in which he is employed being transferred to a transferee which is not a member of the Group; or

	(f)
	for
any other reason at the Committee's discretion 

the
relevant Performance Share Award shall lapse upon such cessation unless the Committee in its absolute discretion determines otherwise in which case Rules 9.3 to 9.6 shall apply to the Award
depending on the reason for the cessation. The Committee shall exercise its discretion under this rule (if at all) within 90 days of the date of cessation. 

9.3    If
a Participant ceases to be an Employee before the Vesting Date by reason of death, injury or disability (as determined by the Committee), the relevant Performance Period shall be
treated as coming to an end and the Performance Share Award relating to that Performance Period shall Vest on cessation of employment. The Committee may determine the number of Shares in respect of
which the Performance Share Award shall Vest in its absolute discretion having regard to the extent to which the relevant Performance Conditions have been satisfied at the date of the cessation of
employment and the number of complete months that have elapsed during the Performance Period up to the cessation of employment. 

9.4    If
a Participant ceases to be an Employee before the Vesting Date by reason of retirement at or after the date on which he is bound or expected to retire under his contract of
employment, the Participant's Performance Share Award shall continue and Vest at the end of the Performance Period to the extent that the Performance Conditions are satisfied at the end of the
Performance Period. The number of Shares in respect of which the Performance Share Award shall Vest shall be the number derived from the measurement of the relevant Performance Conditions as at the
end of the Performance Period multiplied by the fraction A/B (where A is that part of the Performance Period (measured in complete months) from the beginning of the Performance Period to the date of
retirement and B is 36 (or such other greater number as equals the number of months in the full Performance Period)). Notwithstanding the above, the Committee may, in exceptional circumstances,
determine that the Performance Share Award may Vest immediately upon the date of retirement or a later date before the end of the Performance Period and/or that it may Vest in respect of a greater or
lesser number of Shares than is otherwise determined in accordance with this Rule 9.4. 

9.5    If
a Participant ceases to be an Employee before the Vesting Date by reason of his employing company ceasing to be a member of the Group or the business (or part of the business) in
which he is employed being transferred to a transferee which is not a member of the Group, the Committee may in its absolute discretion having regard to the circumstances and timing of the relevant
transaction determine whether: 

	(a)
	the
relevant Performance Period shall be treated as coming to an end and the Performance Share Award relating to that Performance Period shall Vest on cessation of employment in which
case 

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the
number of Shares in respect of which the Performance Share Award shall Vest shall be determined by the Committee in its absolute discretion having regard to the extent to which the relevant
Performance Conditions have been satisfied at the date of the transfer or sale and/or, as the Committee considers appropriate, the performance of the Company and/or the circumstances of the relevant
transaction and the number of complete months that have elapsed during the Performance Period before the transfer or sale; or 

	(b)
	the
Performance Share Award shall continue in which case the Committee will make arrangements to substitute the Shares which are the subject of a Performance Share Award for cash or
shares or other securities of an appropriate company in the group to which the employing company or business (or part of the business) in which the Participant is employed has been sold or transferred
having such value at the date of the sale or transfer as the Committee shall decide so that the Performance Share Award shall Vest at the end of the Performance Period and be subject to the terms of
the Plan but subject to such amendments and variations to the rules of the Plan and the applicable performance conditions as the Committee determines is appropriate in the circumstances. 

9.6    If
a Participant ceases to be an Employee before the Vesting Date for any other reason at the Committee's discretion, the Committee may determine in its absolute discretion when the
relevant Performance Period shall be treated as coming to an end and the Performance Share Award relating to that Performance Period shall Vest (whether at the date of cessation of employment or
later) and the number of Shares in respect of which the Performance Share Award shall Vest having regard to the extent to which the relevant Performance Conditions have been satisfied at the date
determined by the Committee and the number of complete months that have elapsed from the beginning the Performance Period up to the cessation of employment. 

	10.
	RELEASE OF PERFORMANCE SHARE AWARDS

10.1    Subject
to any necessary consents and to compliance by the Participant with the terms of this Plan, the Participant shall be entitled to and the Company shall procure within
30 days after the Vesting Date or any earlier date on which the Performance Share Award Vests under these rules (or as soon as is practicable after such 30 day period) the issue or
transfer to the Participant (or to his nominee) of the full legal and beneficial ownership of the Shares to which he is entitled free from any liens, charges or encumbrances. The Company shall (unless
the Shares are to be issued in uncertified form) as soon as
practicable deliver or procure the delivery to the Participant (or his nominee) of a definitive share certificate or other evidence of title in respect of such Shares. 

10.2    Notwithstanding
any other provision of this Plan, the Participant shall not be entitled and the Company shall not be obliged to issue or procure the transfer of Shares in connection
with a Performance Share Award or take any other action under the Plan unless and until the Company is satisfied that any applicable securities law, any requirement under any listing agreement between
the Company and any securities exchange, automated quotation system or any regulatory body or any other law, regulation or contractual obligation of the Company can be and have been complied with in
full. The Company may require any Participant to make such representations and furnish such information as it may consider appropriate in connection with the issue or transfer of Shares under this
Plan. Certificates representing Shares will be subject to such stop-transfer orders and other restrictions as may be applicable under such laws, regulations and other obligations of the
Company, and a legend or legends may be placed thereon to reflect such restrictions. 

10.3    The
Company may decide, if it is appropriate for legal, regulatory or tax reasons, to make a cash payment to a Participant, in lieu of delivering Shares, of an equivalent value to
the Shares but subject to any necessary deductions required by law. 

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	11.
	GENERAL OFFER FOR THE COMPANY

11.1    If
any person (either alone or together with any person acting in concert with him) obtains Control of the Company as a result of making a general offer to acquire all or some of the
Shares (other than those which are already owned by him and/or any person acting in concert with him) and such offer becomes or is declared unconditional in all respects, or having obtained Control,
makes such an offer, the Committee may, acting fairly and reasonably and having regard to the circumstances of the general offer, determine in its discretion whether a Participant's Performance Share
Awards: 

	(a)
	shall
be automatically exchanged for a new award under Rule 15; or

	(b)
	shall
Vest to the extent determined by the Committee in its absolute discretion under Rule 14. 

11.2    If
the Committee determines that a Performance Share Award Vests under Rule 11.1(b), the Performance Share Award shall be released in respect of the number of Shares
determined under Rule 14 within one month of the offer becoming or being declared unconditional in all respects. 

11.3    If
the Committee determines that a Performance Share Award Vests under Rule 11.1(b) it may in addition determine in its discretion that the Participant may voluntarily agree
to exchange his Performance Share Award for a new award under Rule 15. 

11.4    A
Performance Share Award shall, without prejudice to the operation of Rule 15, lapse in respect of such number of Shares as to which it has not Vested as determined under
this Rule 11 and Rule 14. 

	12.
	SCHEME OF ARRANGEMENT

12.1    If
a court shall direct that a meeting of the holders of Shares be convened pursuant to section 425 of the Companies Act 1985 for the purpose of considering a scheme of
arrangement of the Company or its amalgamation with any other company or companies, Performance Share Award the Committee may, acting fairly and reasonably and having regard to the circumstances of
the scheme of arrangement, determine, in its discretion whether upon the scheme of arrangement being sanctioned by the court (the Relevant Condition) a
Participant's Performance Share Award: 

	(a)
	shall
be automatically exchanged for a new award under Rule 15; or

	(b)
	shall
Vest to the extent determined by the Committee in its absolute discretion under Rule 14. 

12.2    If
the Relevant Condition is not satisfied, the Performance Share Award shall continue. If the Relevant Condition is satisfied, the Performance Share Award shall without prejudice to
the operation of Rule 15 lapse automatically on the day immediately after the date on which the scheme of arrangement is sanctioned by the court. 

12.3    If
the Committee determines that a Performance Share Award Vests under Rule 12.1(b), the Committee shall endeavour to procure that the scheme of arrangement shall, so far as
it relates to
Shares, be extended to such Participant as if each Share determined under Rule 14 had been allotted and issued, or transferred, to him by that time. 

12.4    If
the Committee determines that a Performance Share Award Vests under Rule 12.1(b) it may in addition determine in its discretion that the Participant may voluntarily agree
to exchange his Performance Share Award under Rule 15. 

12.5    Performance
Share Awards shall not Vest under the foregoing provisions of this Rule 12 if the purpose and effect of the scheme of arrangement is to create a new holding
company for the Company, such company having substantially the same shareholders and proportionate shareholdings as those of the Company immediately prior to the scheme of arrangement. A Performance
Share Award will in such circumstances continue and be treated as an award over such number of Shares in the holding 

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company
as is determined to be appropriate by the Committee, and reference in this Plan to "the Company" shall be construed as references to such holding company as appropriate. 

12.6    A
Performance Share Award shall, without prejudice to the operation of Rule 15, lapse in respect of such number of Shares as to which it has not Vested as determined under
this Rule 12 and Rule 14. 

	13.
	VOLUNTARY WINDING-UP

13.1    If
notice is duly given of a resolution for a voluntary winding-up of the Company then the Committee, acting fairly, reasonably and objectively, may in its discretion
allow Performance Share Awards to Vest. A Participant's Performance Share Award shall Vest to the extent determined by the Committee in its absolute discretion under Rule 14. 

13.2    A
Performance Share Award shall lapse in respect of such number of Shares as to which it has not Vested as determined under this Rule 13 and Rule 14. 

	14.
	DETERMINATION OF VESTING LEVEL

Where
a Performance Share Award Vests before the expiry of the relevant Performance Period under Rules 11 to 13, the number of Shares in respect of which the Performance Share Award shall Vest
shall be such number as is determined by the Committee in its absolute discretion taking into account: (i) the performance of the Company (including, without limitation, the extent to which the
Performance Conditions have been or are likely to be achieved as at the date of the relevant event to which Rules 11 to 13 refer) and (ii) the time elapsed between the Date of Grant and
the relevant event to which Rules 11 to 13 refer and in this regard the Committee may, but shall not be obliged to, consider whether it is appropriate to apply one of the following percentages
to a Performance Share Award to determine the extent to which a Performance Share Award shall Vest: 

	(a)
	33%
if the relevant event occurs during the first year of the Performance Period;

	(b)
	67%
if the relevant event occurs during the second year of the Performance Period; and

	(c)
	100%
if the relevant event occurs during the third year of the Performance Period.

	15.
	EXCHANGE OF PERFORMANCE SHARE AWARDS

15.1    Where
Performance Share Awards are to be exchanged under this Rule, any Performance Share Award (the Old Right) may (if the exchange
is voluntary under Rule 11.3 or Rule 12.4 or shall (if the exchange is automatic under Rule 11.1(a) or Rule 12.1(a)) be surrendered by the Participant in consideration of
the grant to the Participant of a new award (the New Right) which, in the opinion of the Committee, is equivalent to the Old Right but relates to shares
in a different company. The provisions of the Plan shall be construed in relation to the New Right as if: 

	(a)
	the
New Right were a Performance Share Award granted under the Plan at the same time as the Old Right;

	(b)
	references
to the Performance Conditions were references to such new performance conditions relating to the business or shares of the company whose shares are subject to the New Right
(or any member of its group) as the Committee may consider appropriate in the circumstances;

	(c)
	references
to the Company and the Group were references to the company whose shares are subject to the New Right and its group; and

	(d)
	references
to Shares were references to shares in the new grantor. 

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	16.
	DEMERGER

16.1    If
the Committee becomes aware that the Company is or is expected to be affected by any demerger, dividend in specie, super dividend or other transaction which, in the opinion of the
Committee, would materially affect the current or future value of any Performance Share Awards (whether by increasing or reducing the value), the Committee, acting fairly, reasonably and objectively,
may in its absolute discretion treat some or all of the Performance Share Awards as Vested to the extent to which the Performance Conditions have or are likely to have been met at that time. The
Committee shall specify when such Vested Performance Share Award shall be released. 

16.2    A
Performance Share Award shall lapse in respect of such number of Shares as to which it has not Vested in accordance with this Rule 16. 

	17.
	ADJUSTMENT OF PERFORMANCE SHARE AWARDS

In
the event of: 

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

	(ii)
	the
implementation by the Company of a demerger or the payment by the Company of a dividend in specie or a super-dividend which would otherwise materially affect the
value of a Performance Share Award, 

then
the terms of a Performance Share Award (including, if relevant, the Performance Conditions applicable thereto) shall be adjusted in such manner as the Committee shall determine in its absolute
discretion provided that no adjustment shall be made pursuant to this Rule 17 unless and until the auditors for the time being of the Company
(acting as experts not arbitrators) shall confirm in writing to the Committee that such adjustment is in their opinion fair and reasonable. 

	18.
	RIGHTS ATTACHING TO SHARES ISSUED OR TRANSFERRED PURSUANT TO AWARDS

18.1    All
Shares issued or transferred pursuant to a Performance Share Award shall be of equal rank in all respects with the Shares in issue at the date of transfer or issue save as
regards any rights attaching to such Shares by reference to a record date prior to the date of transfer or issue. 

18.2    Any
Shares acquired pursuant to a Performance Share Award shall be subject to the articles of association of the Company from time to time. 

	19.
	AVAILABILITY OF SHARES

19.1    The
Company shall at all times keep available for issue sufficient authorised but unissued Shares to satisfy all Performance Share Awards under which Shares may be allotted or shall
otherwise procure that Shares or Treasury Shares are available for transfer in satisfaction of Performance Share Awards. 

19.2    If
and so long as the Shares are listed on the UK Listing Authority and admitted to trading on the Official List of the London Stock Exchange, the Company shall make application to
the UK Listing Authority and to the London Stock Exchange for any Shares allotted pursuant to a Performance Share Award to become admitted to such listing on the Official List of the UK Listing
Authority and to trading on the Official List of the London Stock Exchange. 

	20.
	ADMINISTRATION AND AMENDMENT

20.1    Subject
to Rules 20.2 and 20.3, the decision of the Remuneration Committee shall be final and binding in all matters relating to the Plan and it may at any time discontinue
the grant of further Performance Share Awards or amend any of the provisions of the Plan in any way it thinks fit. 

20.2    The
Remuneration Committee shall not make any amendment that would materially prejudice the interest of an existing Participant except with the prior consent of the Participant. 

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20.3    No
amendment to the advantage of Employees or Participants may be made to the basic structure of the Plan (as determined by the Committee but including, without limitation, the
definition of Employee, the limits under Rules 4 and 5, the terms of Shares to be provided under the Plan, the adjustment provisions of
Rule 17, the rights attaching to Shares and the amendment powers in this Rule 20) without the prior approval of the Company in general meeting except in the case of a minor amendment to
benefit the administration of the Plan or an amendment to take account of any applicable legislation or change in law or to obtain or maintain favourable tax, exchange control or regulatory treatment
for Employees or Participants or any member of the Group. 

	21.
	GENERAL

21.1    The
Plan constitutes an employees' share scheme for the purposes of section 743 of the Companies Act 1985 (being a scheme for encouraging or facilitating the holding of
Shares). Any member of the Group may provide money to the Trustee 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 151 of the Companies Act 1985. 

21.2    Participation
in the Plan by a Participant is a matter entirely separate from, and does not affect, the terms and conditions of his office or employment. 

21.3    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 (whether such cessation is lawful or unlawful) insofar as those rights arise, or may arise, from his ceasing to have rights under or be entitled to exercise any Performance Share Award
under the Plan as a result of such termination or from the loss or diminution in value of such rights or entitlements. If necessary, the Participant's terms of employment shall be deemed to be varied
accordingly. 

21.4    Any
notice or other document required to be given under or in connection with the Plan may be given to a Participant electronically, 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. Any notice or other document required to be given to the
Company under or in connection with the Plan may be given to the Company electronically, 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). Notices sent by post shall be deemed to have been given on the day following the date of posting. 

21.5    Benefits
under the Plan shall not be pensionable. 

21.6    The
Company, or where the Committee so directs any Subsidiary, shall pay the appropriate stamp duty on behalf of Participants in respect of any transfer of Shares on the exercise of
Performance Share Awards. 

21.7    The
rules of the Plan shall be governed by, and construed in accordance with, the laws of England and Wales. 

12

  

 
 

CONTENTS    
    

	CLAUSE
 
	 	PAGE

	1.	 	DEFINITIONS	 	1
	

2.	
 	

GRANT OF PERFORMANCE SHARE AWARDS	
 	

3
	

3.	
 	

PERFORMANCE CONDITIONS	
 	

3
	

4.	
 	

PLAN LIMITS	
 	

4
	

5.	
 	

INDIVIDUAL LIMITS	
 	

4
	

6.	
 	

DIVIDENDS	
 	

5
	

7.	
 	

VESTING OF PERFORMANCE SHARE AWARDS	
 	

5
	

8.	
 	

LAPSE OF PERFORMANCE SHARE AWARDS	
 	

5
	

9.	
 	

CESSATION OF EMPLOYMENT	
 	

6
	

10.	
 	

RELEASE OF PERFORMANCE SHARE AWARDS	
 	

7
	

11.	
 	

GENERAL OFFER FOR THE COMPANY	
 	

8
	

12.	
 	

SCHEME OF ARRANGEMENT	
 	

8
	

13.	
 	

VOLUNTARY WINDING-UP	
 	

9
	

14.	
 	

DETERMINATION OF VESTING LEVEL	
 	

9
	

15.	
 	

EXCHANGE OF PERFORMANCE SHARE AWARDS	
 	

9
	

16.	
 	

DEMERGER	
 	

10
	

17.	
 	

ADJUSTMENT OF PERFORMANCE SHARE AWARDS	
 	

10
	

18.	
 	

RIGHTS ATTACHING TO SHARES ISSUED OR TRANSFERRED PURSUANT TO AWARDS	
 	

10
	

19.	
 	

AVAILABILITY OF SHARES	
 	

10
	

20.	
 	

ADMINISTRATION AND AMENDMENT	
 	

10
	

21.	
 	

GENERAL	
 	

11
	

CONTENTS	
 	

12

12

  

 
 

PRUDENTIAL PLC
  THE PRUDENTIAL BUSINESS UNIT PERFORMANCE PLAN    
    

 
 

Approved by the Company in general meeting on
  18 May 2006 and amended by the board of
  directors 29 September 2006    
    

1

 
 
 

THE PRUDENTIAL BUSINESS UNIT PERFORMANCE PLAN    
    

The
Company and any of its Subsidiaries may nominate any of their employees to participate in the Plan and the Subsidiaries may bear the associated costs of any such participation as determined by the
Company. 

	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 the date of the adoption of the Plan by the Company in general meeting; 

Average Market Value means in relation to a Share, the average of the Market Value of such a Share during the calendar year preceding the Date of Grant
(calculated on such appropriate basis as the Committee may determine); 

Award Letter means the document setting out the rights and obligations attaching to a Business Performance Award and which may incorporate by reference
the rules of the Plan; 

Business Performance Award means an award granted in the form referred to in Rule 2.1 of this Plan entitling a Participant to acquire a number of
Shares and to be paid a cash sum subject to the terms of the Plan; 

Cause means (i) gross misconduct; (ii) gross negligence; (iii) insubordination; (iv) conviction of a criminal offence (other
than a road traffic offence not subject to a custodial sentence); (v) continued substantial non-performance of duties; (vi) breach of any non-competition or
non-solicitation provision in any agreement to which the Participant is a party; or (vii) any other ground which would entitle the employing company to terminate the Participant's
employment summarily and without notice under the terms of the employment contract or under the law of the jurisdiction applicable to the Participant's employment at the time of such termination; 

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

the Company means Prudential plc; 

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

Date of Grant means the date on which a Business Performance Award is granted; 

Dealing Day means any day on which the London Stock Exchange is open for business; 

Employee means any employee or executive director of a member of the Group whose terms of service require him to devote substantially the whole of his
working time to the businesses of the Group and who has not given or been given notice terminating his employment; 

Executive Share Scheme means any employee share scheme adopted by the Company under which individuals may be selected for participation at the
discretion of the body administering that scheme; 

Financial Year means an accounting reference period of the Company as defined in accordance with section 224 of the Companies Act 1985; 

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

	(a)
	the
Adoption Date;

	(b)
	the
day on which the Company makes an announcement of its results for the last preceding financial year, half year, quarter or other period; or 

2

 
	(c)
	any
day on which the Committee resolves that exceptional circumstances exist which justify the grant of Business Performance Awards and for the avoidance of doubt the hire of a new
Employee may fall to be treated as such an exceptional circumstance; 

the Group means the Company and the Subsidiaries and member of the Group shall be construed accordingly; 

Market Value means, in relation to a Share on any Dealing Day, the middle market quotation for a Share as derived from the Daily Official List of the
London Stock Exchange for that Dealing Day; 

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

Performance Conditions mean the conditions specified by the Committee at the Date of Grant in relation to a Business Performance Award or as amended
from time to time; 

Performance Period means unless foreshortened pursuant to Rules 9, 11, 12, 11.1 or 16 of this Plan a period of three years commencing on the
Start Date during which the Performance Condition is to be satisfied or such longer period as the Committee may specify for specific Participants; 

the Plan means the rules of this Plan as amended from time to time; 

Share Plan Committee means the committee established by the board of the Company to administer the Plan; 

Shares means fully paid ordinary shares in the capital of the Company (or shares representing those shares following any reorganisation of the share
capital of the Company); 

Start Date means in relation to a Business Performance Award the beginning of the Financial Year in which the Award is granted or such later date as may
be specified by the Committee on the Date of Grant; 

Subsidiary means any subsidiary of the Company within the meaning of section 736 of the Companies Act 1985 over which the Company has Control; 

Taxes Act means the Income and Corporation Taxes Act 1988; 

Treasury Shares means any Shares held as treasury shares by the Company within the meaning of section 162A(3) of the Companies Act 1985; 

Trustee means the trustee from to time of any employee trust which the Committee selects to grant and/or satisfy Business Performance Awards; 

Vesting means becoming entitled to the payment of cash or the issue or transfer of Shares pursuant to a Business Performance Award and  Vest shall
be construed accordingly; and 

Vesting Date means the date of the determination by the Committee under rule 7 of: 

	(a)
	the
extent to which the Performance Conditions attaching to a Business Performance Award have been satisfied; and

	(b)
	the
number of Shares (if any) in respect of which a Business Performance Award shall be released. 

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 shall include any statutory modification, amendment or re-enactment thereof. 

3

 

	2.
	GRANT OF BUSINESS PERFORMANCE AWARDS

2.1    The
Committee may, during a Grant Period, grant Business Performance Awards to Employees selected by the Committee in its absolute discretion. A Business Performance Award shall allow
a Participant to be paid a cash sum and to acquire a number of Shares in such proportions as the Committee may determine at the Date of Grant of a Business Performance Award. 

2.2    To
the extent that a Business Performance Award comprises of Shares, the Committee may grant a Business Performance Award in the form of a nil cost option, a right to acquire Shares,
a conditional allocation of Shares or in such other form as may confer on the Participant an equivalent economic benefit. 

2.3    Nothing
in this Plan or in any Employee's contract of employment shall be construed as giving to any Employee a right to be considered for participation in the Plan or to receive the
grant of any Business Performance Award. 

2.4    The
grant of a Business Performance Award and/or the payment of the cash sum and the delivery of Shares upon release thereof shall be conditional on the Participant agreeing to comply
with any arrangements specified by the Company for the payment of taxation and any social security contributions in respect of the Business Performance Award (including without limitation the right of
the Company to deduct any taxation or social security liability from the cash sum and to arrange the sale on his behalf of sufficient Shares to satisfy any taxation or social security liability on his
part which the Company or any member of the Group may be liable to withhold). 

2.5    A
Participant shall not have any beneficial ownership of the Shares which are the subject of a Business Performance Award granted to him, and accordingly shall not have any right to
any dividends or voting rights attaching to the Shares save as set out in Rule 6 below. 

2.6    A
Participant shall not be required to pay for the grant of a Business Performance Award. 

2.7    An
Employee to whom a Business Performance 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 rights under the Business Performance Award. 

2.8    As
soon as practicable after the Date of Grant the Committee shall procure the issue to a Participant of an Award Letter in respect of the Business Performance Award. The Award Letter
shall specify, inter alia, the following: 

	(a)
	the
dates on which the relevant Performance Period shall start and end;

	(b)
	the
details of the Performance Conditions imposed in accordance with Rule 3.1 and the manner in which the Performance Conditions will determine the number of Shares that may be
acquired on Vesting of the Business Performance Award;

	(c)
	whether
a Business Performance Award shall be enhanced in accordance with Rule 6; and

	(d)
	the
proportions of cash and Shares to which the Business Performance Award relates. 

2.9    No
Business Performance Award shall be granted under the Plan later than the tenth anniversary of the Adoption Date. 

2.10    Every
Business Performance Award granted hereunder shall be personal to the Participant and, except in the event of the death of a Participant, neither the Business Performance Award
nor the benefit thereof may be transferred, assigned, charged or otherwise alienated Any transfer or exercise otherwise than as permitted under this Rule 2.10 shall cause the Business
Performance Award to lapse. 

4

 

	3.
	PERFORMANCE CONDITIONS

3.1    Each
Business Performance Award shall be subject to one or more Performance Conditions which will determine the amount of cash which the Participant will be entitled to be paid and
the number of Shares which the Participant will be entitled to acquire on Vesting of the Business Performance Award. The Committee may impose different Performance Conditions for Performance Awards
granted to different Participants in the same Financial Year or to Participants in different Financial Years. 

3.2    The
Performance Conditions may be amended after the Date of Grant if: 

	(i)
	those
circumstances which prevailed at the Date of Grant and which were relevant to the Performance Conditions when they were originally imposed have subsequently changed; and

	(ii)
	the
Committee is satisfied that any such amended Performance Conditions would be a fairer measure of performance and the Committee reasonably considers that such amended Performance
Conditions are consistent with and no more or less demanding to satisfy than the original Performance Conditions.

 

	4.
	PLAN LIMITS

4.1    No
Business Performance Award shall be granted on any day to the extent that the result of that grant would be that: 

	(a)
	the
aggregate number of Shares that could be issued on Vesting or release of that Business Performance Award when added to the number of Shares that:

	(i)
	could
be issued on the exercise, vesting or release of any other subsisting Business Performance Award granted during the preceding ten years under the Plan;

	(ii)
	have
been issued on Vesting or release of any subsisting Business Performance Award granted during the preceding ten years under the Plan;

	(iii)
	could
be issued pursuant to any other awards, options or rights granted during the preceding ten years under any other employee share scheme adopted by the Company; and

	(iv)
	have
been issued pursuant to any other awards, options or rights granted during the preceding ten years under any other employee share scheme adopted by the Company 

would
exceed 10 per cent of the ordinary share capital of the Company from time to time in issue; 

	(b)
	the
aggregate of the number of Shares that could be issued on Vesting or release of that Business Performance Award when added to the number of Shares that:

	(i)
	could
be issued on Vesting or release of any other subsisting Business Performance Award granted during the preceding ten years under the Plan;

	(ii)
	have
been issued on Vesting or release of any subsisting Business Performance Award granted during the preceding ten years under the Plan;

	(iii)
	could
be issued pursuant to any other awards, options or rights granted during the preceding ten years under any other Executive Share Scheme adopted by the Company; and

	(iv)
	have
been issued pursuant to any other awards, options or rights granted during the preceding ten years under any other Executive Share Scheme adopted by the Company 

would
exceed 5 per cent of the ordinary share capital of the Company from time to time in issue. 

4.2    Where
Shares are transferred or to be transferred from treasury under this Plan or any other employees' share scheme established by the Company and for as long as it remains best
practice to do 

5

 

so
in accordance with institutional shareholder guidelines, such Shares shall be treated, for the purpose of this Rule 4 as Shares that are issued or issuable. 

	5.
	INDIVIDUAL LIMITS

5.1    A
Business Performance Award shall not be granted to an Employee if such grant would cause the maximum cash sum payable and the total Average Market Value of the maximum number of
Shares that may be acquired upon exercise or release of the Business Performance Award (as measured at the Date of Grant) when aggregated with the maximum cash sum payable and the total Average Market
Value of the maximum number of Shares that may be acquired pursuant to any other Business Performance Award granted to the Employee under the Plan or any award granted under the Prudential Performance
Share Plan in the same Financial Year, to exceed 3.5 times the Employee's annual basic salary in respect of his employment with the Group as at the Date of Grant. 

5.2    In
case of an Employee who is working and based in the United States or such other jurisdiction as the Committee determines at the Date of Grant, the limit referred to in
Rule 5.1 above shall be 5.5 times the Employee's annual basic salary in respect of his employment with the Group as at the Date of Grant. 

5.3    In
the case of an Employee who is an executive director of the Company, the total Average Market Value of the maximum number of Shares that may be acquired upon exercise or release of
the Business Performance Award shall represent at least 50 per cent. of the sum of (i) the total Average Market Value (as measured at the Date of Grant); and (ii) the maximum cash sum
payable to the Employee pursuant to the Business Performance Award. 

	6.
	DIVIDENDS

If
a dividend is payable on Shares and the Committee has so determined at the Date of Grant of a Business Performance Award, the Business Performance Award shall be enhanced by increasing the number
of Shares comprised in the Business Performance Award by an additional number of Shares
having a Market Value at the time the dividend is paid equivalent to the gross or net of tax value of the dividend and the enhanced Business Performance Award shall be exercisable in accordance with
these rules on the same basis as the original Business Performance Award, unless the Committee has determined otherwise at the Date of Grant. 

	7.
	VESTING OF BUSINESS PERFORMANCE AWARDS

7.1    Save
as otherwise permitted in the rules of the Plan, a Business Performance Award shall only Vest if the Participant remains an employee of a member of the Group until the Vesting
Date. 

7.2    Notwithstanding
rule 7.1, a Business Performance Award shall not Vest unless the Committee is satisfied that the underlying financial performance of the Company during the
Performance Period is such as to justify the Vesting of such award. 

7.3    As
soon as reasonably practicable after the end of the last Financial Year of the Performance Period the Committee shall determine whether and the extent to which the Performance
Conditions imposed under Rule 3.1 and the requirement of Rule 7.2 have been satisfied and shall notify a Participant of its determination. 

7.4    Save
as otherwise provided in these Rules, if a Business Performance Award Vests, the Participant shall be entitled to be paid such cash sum and issued or transferred such number of
Shares as is determined by the Committee in accordance with the Performance Conditions imposed under Rule 3. 

6

 

	8.
	LAPSE OF BUSINESS PERFORMANCE AWARDS

8.1    Notwithstanding
any other provisions in these rules, a Business Performance Award shall lapse automatically on the earliest of: 

	(a)
	the
Participant being declared bankrupt or entering into any general composition with or for the benefit of his creditors, including a voluntary arrangement under the Insolvency Act
1986;

	(b)
	the
dismissal of the Participant for Cause;

	(c)
	the
date on which the Participant ceases to be an Employee for any reason mentioned in Rule 9.2 below unless the Committee exercises its discretion under Rule 9 to allow
the Business Performance Award to Vest or be retained;

	(d)
	the
date on which the Participant ceases to be an Employee for any reason other than one referred to in Rule 9.2 below whether such cessation is lawful or unlawful;

	(e)
	the
date on which the Committee determines that the Performance Conditions for a Performance Period have not been satisfied or the underlying performance of the Company does not
justify vesting; and

	(f)
	following
a general offer for the Company, scheme of arrangement, winding-up of the Company or demerger in accordance with Rule 11.4, 12.2, 12.6, 13.2 and 16.2
below.

	9.
	CESSATION OF EMPLOYMENT

9.1    Save
as otherwise provided in Rule 9.2 if a Participant ceases to be an Employee before the Vesting Date, the Business Performance Award shall lapse on the date of such
cessation. 

9.2    If
a Participant ceases to be an Employee before the Vesting Date by reason of: 

	(a)
	death;

	(b)
	injury
or disability (as determined by the Committee);

	(c)
	retirement
at or after the date on which he is bound or expected to retire under his contract of employment;

	(d)
	his
employing company ceasing to be a member of the Group;

	(e)
	the
business (or part of the business) in which he is employed being transferred to a transferee which is not a member of the Group; or

	(f)
	for
any other reason at the Committee's discretion 

the
relevant Business Performance Award shall lapse upon such cessation unless the Committee in its absolute discretion determines otherwise in which case Rules 9.3 to 9.6 shall apply to the
Award depending on the reason for the cessation. The Committee shall exercise its discretion under this rule (if at all) within 90 days of the date of cessation. 

9.3    If
a Participant ceases to be an Employee before the Vesting Date by reason of death, injury or disability (as determined by the Committee), the relevant Performance Period shall be
treated as coming to an end and the Business Performance Award relating to that Performance Period shall Vest on cessation of employment. The Committee may determine the cash sum payable to the
Participant and the number of Shares in respect of which the Business Performance Award shall Vest in its absolute discretion having regard to the extent to which the relevant Performance Conditions
have been satisfied at the date of the cessation of employment and the number of complete months that have elapsed during the Performance Period up to the cessation of employment. 

7

 

9.4    If
a Participant ceases to be an Employee before the Vesting Date by reason of retirement at or after the date on which he is bound or expected to retire under his contract of
employment, the Participant's Business Performance Award shall continue and Vest at the end of the Performance Period to the extent that the Performance Conditions are satisfied at the end of the
Performance Period. The cash sum payable to the Participant and the number of Shares in respect of which the Business Performance Award shall Vest shall be the number derived from the measurement of
the relevant Performance Conditions as at the end of the Performance Period multiplied by the fraction A/B (where A is that part of the Performance Period (measured in complete months) from the
beginning of the Performance Period to the date of retirement and B is 36 (or such other greater number as equals the number of months in the full Performance Period)). Notwithstanding the above, the
Committee may, in exceptional circumstances, determine that the Business Performance Award may Vest immediately upon the date of retirement or a later date before the end of the Performance Period
and/or that it may Vest in respect of a greater or lesser amount of cash and number of Shares than is otherwise determined in accordance with this Rule 9.4. 

9.5    If
a Participant ceases to be an Employee before the Vesting Date by reason of his employing company ceasing to be a member of the Group or the business (or part of the business) in
which he is employed being transferred to a transferee which is not a member of the Group, the Committee may in its absolute discretion having regard to the circumstances and timing of the relevant
transaction determine whether: 

	(a)
	the
relevant Performance Period shall be treated as coming to an end and the Business Performance Award relating to that Performance Period shall Vest on cessation of employment in
which case the cash sum payable to the Participant and the number of Shares in respect of which the Business Performance Award shall Vest shall be determined by the Committee in its absolute
discretion having regard to the extent to which the relevant Performance Conditions have been satisfied at the date of the transfer or sale and/or, as the Committee considers appropriate, the
performance of the Company and/or the circumstances of the relevant transaction and the number of complete months that have elapsed during the Performance Period before the transfer or sale; or

	(b)
	the
Business Performance Award shall continue in which case the Committee will make arrangements to substitute the Shares which are the subject of a Business Performance Award for a
cash entitlement or shares or other securities of an appropriate company in the group to which the employing company or business (or part of the business) in which the Participant is employed has been
sold or transferred having such value at the date of the sale or transfer as the Committee shall decide so that the Business Performance Award shall Vest at the end of the Performance Period and be
subject to the terms of the Plan but subject to such amendments and variations to the rules of the Plan and the applicable performance conditions as the Committee determines is appropriate in the
circumstances. 

9.6    If
a Participant ceases to be an Employee before the Vesting Date for any other reason at the Committee's discretion, the Committee may determine in its absolute discretion when the
relevant Performance Period shall be treated as coming to an end and the Business Performance Award relating
to that Performance Period shall Vest (whether at the date of cessation of employment or later) and the cash sum and the number of Shares in respect of which the Business Performance Award shall Vest
having regard to the extent to which the relevant Performance Conditions have been satisfied at the date determined by the Committee and the number of complete months that have elapsed from the
beginning the Performance Period up to the cessation of employment. 

	10.
	RELEASE OF BUSINESS PERFORMANCE AWARDS

10.1    Subject
to any necessary consents and to compliance by the Participant with the terms of this Plan, the Participant shall be entitled to and the Company shall procure within
30 days after the 

8

 

Vesting
Date or any earlier date on which the Business Performance Award Vests under these rules (or as soon as is practicable after such 30 day period) the payment of the cash sum to which the
Participant is entitled and the issue or transfer to the Participant (or to his nominee) of the full legal and beneficial ownership of the Shares to which he is entitled free from any liens, charges
or encumbrances. The Company shall (unless the Shares are to be issued in uncertified form) as soon as practicable deliver or procure the delivery to the Participant (or his nominee) of a definitive
share certificate or other evidence of title in respect of such Shares. 

10.2    Notwithstanding
any other provision of this Plan, the Participant shall not be entitled and the Company shall not be obliged to issue or procure the transfer of Shares or pay cash in
connection with a Business Performance Award or take any other action under the Plan unless and until the Company is satisfied that any applicable securities law, any requirement under any listing
agreement between the Company and any securities exchange, automated quotation system or any regulatory body or any other law, regulation or contractual obligation of the Company can be and have been
complied with in full. The Company may require any Participant to make such representations and furnish such information as it may consider appropriate in connection with the issue or transfer of
Shares under this Plan. Certificates representing Shares will be subject to such stop-transfer orders and other restrictions as may be applicable under such laws, regulations and other
obligations of the Company, and a legend or legends may be placed thereon to reflect such restrictions. 

10.3    The
Company may decide, if it is appropriate for legal, regulatory or tax reasons, to make a cash payment to a Participant, in lieu of delivering Shares, of an equivalent value to
the Shares but subject to any necessary deductions required by law. 

	11.
	GENERAL OFFER FOR THE COMPANY

11.1    If
any person (either alone or together with any person acting in concert with him) obtains Control of the Company as a result of making a general offer to acquire all or some of the
Shares (other than those which are already owned by him and/or any person acting in concert with him) and such offer becomes or is declared unconditional in all respects, or having obtained Control,
makes such an offer, the Committee may, acting fairly and reasonably and having regard to the circumstances of the general offer, determine in its discretion whether a Participant's Business
Performance Awards: 

	(a)
	shall
be automatically exchanged for a new award under Rule 15; or

	(b)
	shall
Vest to the extent determined by the Committee in its absolute discretion under Rule 14. 

11.2    If
the Committee determines that a Business Performance Award Vests under Rule 11.1(b), the Business Performance Award shall be released in respect of the number of Shares
determined under Rule 14 within one month of the offer becoming or being declared unconditional in all respects. 

11.3    If
the Committee determines that a Business Performance Award Vests under Rule 11.1(b) it may in addition determine in its discretion that the Participant may voluntarily
agree to exchange his Business Performance Award for a new award under Rule 15. 

11.4    A
Business Performance Award shall, without prejudice to the operation of Rule 15, lapse in respect of such number of Shares as to which it has not Vested as determined under
this Rule 11 and Rule 14. 

	12.
	SCHEME OF ARRANGEMENT

12.1    If
a court shall direct that a meeting of the holders of Shares be convened pursuant to section 425 of the Companies Act 1985 for the purpose of considering a scheme of
arrangement of the Company or its amalgamation with any other company or companies, Business Performance Award the Committee may, acting fairly and reasonably and having regard to the circumstances of
the scheme of 

9

 

arrangement,
determine, in its discretion whether, upon the scheme of arrangement being sanctioned by the court (the Relevant Condition), a
Participant's Business Performance Award: 

	(a)
	shall
be automatically exchanged for a new award under Rule 15; or

	(b)
	shall
Vest to the extent determined by the Committee in its absolute discretion under Rule 14. 

12.2    If
the Relevant Condition is not satisfied, the Business Performance Award shall continue. If the Relevant Condition is satisfied, the Business Performance Award shall without
prejudice to the operation of Rule 15 lapse automatically on the day immediately after the date on which the scheme of arrangement is sanctioned by the court. 

12.3    If
the Committee determines that a Business Performance Award Vests under Rule 12.1(b), the Committee shall endeavour to procure that the scheme of arrangement shall, so far
as it relates to Shares, be extended to such Participant as if each Share determined under Rule 14 had been allotted and issued, or transferred, to him by that time. 

12.4    If
the Committee determines that a Business Performance Award Vests under Rule 12.1(b) it may in addition determine in its discretion that the Participant may voluntarily
agree to exchange his Business Performance Award under Rule 15. 

12.5    Business
Performance Awards shall not Vest under the foregoing provisions of this Rule 12 if the purpose and effect of the scheme of arrangement is to create a new holding
company for the Company, such company having substantially the same shareholders and proportionate shareholdings as those of the Company immediately prior to the scheme of arrangement. A Business
Performance Award will in such circumstances continue and be treated as an award over such number of Shares in the holding company as is determined to be appropriate by the Committee, and reference in
this Plan to "the Company" shall be construed as references to such holding company as appropriate. 

12.6    A
Business Performance Award shall, without prejudice to the operation of Rule 15, lapse in respect of such number of Shares as to which it has not Vested as determined under
this Rule 12 and Rule 14. 

	13.
	VOLUNTARY WINDING-UP

13.1    If
notice is duly given of a resolution for a voluntary winding-up of the Company then the Committee, acting fairly, reasonably and objectively, may in its discretion
allow Business Performance Awards to Vest. A Participant's Business Performance Award shall Vest to the extent determined by the Committee in its absolute discretion under Rule 14. 

13.2    A
Business Performance Award shall lapse in respect of such amount of cash and such number of Shares as to which it has not Vested as determined under Rule 11.1 and
Rule 14. 

	14.
	DETERMINATION OF VESTING LEVEL

Where
a Business Performance Award Vests before the expiry of the relevant Performance Period under Rules 11 to 11.1, the cash sum payable to a Participant and the number of Shares in respect
of which the Business Performance Award shall Vest shall be such amount of cash and number of Shares as is determined by the Committee in its absolute discretion taking into account: (i) the
performance of the Company (including, without limitation, the extent to which the Performance Conditions have been or are likely to be achieved as at the date of the relevant event to which
Rules 11 to 13 refer) and (ii) the time elapsed between the Date of Grant and the relevant event to which Rules 11 to 13 refer and in this regard the Committee may, but shall not
be obliged to, consider whether it is appropriate to apply one of the following percentages to a Business Performance Award to determine the extent to which a Business Performance Award shall Vest: 

	(a)
	33%
if the relevant event occurs during the first year of the Performance Period; 

10

 
	(b)
	67%
if the relevant event occurs during the second year of the Performance Period; and

	(c)
	100%
if the relevant event occurs during the third year of the Performance Period.

	15.
	EXCHANGE OF BUSINESS PERFORMANCE AWARDS

15.1    Where
Business Performance Awards are to be exchanged under this Rule, any Business Performance Award (the Old Right) may (if the
exchange is voluntary under Rule 11.3 or Rule 12.4 or shall (if the exchange is automatic under Rule 11.1(a) or Rule 12.1(a) be surrendered by the Participant in
consideration of the grant to the Participant of a new award (the New Right) which, in the opinion of the Committee, is equivalent to the Old Right but
relates to shares (or a combination of cash and shares) in a different company. The provisions of the Plan shall be construed in relation to the New Right as if: 

	(a)
	the
New Right were a Business Performance Award granted under the Plan at the same time as the Old Right;

	(b)
	references
to the Performance Conditions were references to such new performance conditions relating to the business or shares of the company whose shares are subject to the New Right
(or any member of its group) as the Committee may consider appropriate in the circumstances;

	(c)
	references
to the Company and the Group were references to the company whose shares are subject to the New Right and its group; and

	(d)
	references
to Shares were references to shares in the new grantor.

	16.
	DEMERGER

16.1    If
the Committee becomes aware that the Company is or is expected to be affected by any demerger, dividend in specie, super dividend or other transaction which, in the opinion of the
Committee, would materially affect the current or future value of any Business Performance Awards (whether by increasing or reducing the value), the Committee, acting fairly, reasonably and
objectively, may in its absolute discretion treat some or all of the Business Performance Awards as Vested to the extent to which the Performance Conditions have or are likely to have been met at that
time. The Committee shall specify when such Vested Business Performance Award shall be released. 

16.2    A
Business Performance Award shall lapse in respect of such amount of cash and the number of Shares as to which it has not Vested in accordance with this Rule 16. 

	17.
	ADJUSTMENT OF BUSINESS PERFORMANCE AWARDS

In
the event of: 

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

	(ii)
	the
implementation by the Company of a demerger or the payment by the Company of a dividend in specie or a super-dividend which would otherwise materially affect the value of a
Business Performance Award, 

then
the terms of a Business Performance Award (including, if relevant, the Performance Conditions applicable thereto) shall be adjusted in such manner as the Committee shall determine in its absolute
discretion provided that no adjustment shall be made pursuant to this Rule 17 unless and until the auditors for the time being of the Company
(acting as experts not arbitrators) shall confirm in writing to the Committee that such adjustment is in their opinion fair and reasonable. 

11

 

	18.
	RIGHTS ATTACHING TO SHARES ISSUED OR TRANSFERRED PURSUANT TO AWARDS

18.1    All
Shares issued or transferred pursuant to a Business Performance Award shall be of equal rank in all respects with the Shares in issue at the date of transfer or issue save as
regards any rights attaching to such Shares by reference to a record date prior to the date of transfer or issue. 

18.2    Any
Shares acquired pursuant to a Business Performance Award shall be subject to the articles of association of the Company from time to time. 

	19.
	AVAILABILITY OF SHARES

19.1    The
Company shall at all times keep available for issue sufficient authorised but unissued Shares to satisfy all Business Performance Awards under which Shares may be allotted or
shall otherwise procure that Shares or Treasury Shares are available for transfer in satisfaction of Business Performance Awards. 

19.2    If
and so long as the Shares are listed on the UK Listing Authority and admitted to trading on the Official List of the London Stock Exchange, the Company shall make application to
the UK Listing Authority and to the London Stock Exchange for any Shares allotted pursuant to a Business Performance Award to become admitted to such listing on the Official List of the UK Listing
Authority and to trading on the Official List of the London Stock Exchange. 

	20.
	ADMINISTRATION AND AMENDMENT

20.1    Subject
to Rules 20.2 and 20.3, the decision of the Remuneration Committee shall be final and binding in all matters relating to the Plan and it may at any time discontinue
the grant of further Business Performance Awards or amend any of the provisions of the Plan in any way it thinks fit. 

20.2    The
Remuneration Committee shall not make any amendment that would materially prejudice the interest of an existing Participant except with the prior consent of the Participant. 

20.3    No
amendment to the advantage of Employees or Participants may be made to the basic structure of the Plan (as determined by the Committee but including, without limitation, the
definition of Employee, the limits under Rules 4 and 5, the terms of Shares to be provided under the Plan, the adjustment provisions of
Rule 17, the rights attaching to Shares and the amendment powers in this Rule 20) without the prior approval of the Company in general meeting except in the case of a minor amendment to
benefit the administration of the Plan or an amendment to take account of any applicable legislation or change in law or to obtain or maintain favourable tax, exchange control or regulatory treatment
for Employees or Participants or any member of the Group. 

	21.
	GENERAL

21.1    The
Plan constitutes an employees' share scheme for the purposes of section 743 of the Companies Act 1985 (being a scheme for encouraging or facilitating the holding of
Shares). Any member of the Group may provide money to the Trustee 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 151 of the Companies Act 1985. 

21.2    Participation
in the Plan by a Participant is a matter entirely separate from, and does not affect, the terms and conditions of his office or employment. 

21.3    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 (whether such cessation is lawful or unlawful) insofar as those rights arise, or may arise, from his ceasing to have rights under or be entitled to exercise any Business Performance
Award under the Plan as a result of such termination or from the loss or diminution in value of such rights or 

12

 

entitlements.
If necessary, the Participant's terms of employment shall be deemed to be varied accordingly. 

21.4    Any
notice or other document required to be given under or in connection with the Plan may be given to a Participant electronically, 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. Any notice or other document required to be given to the
Company under or in connection with the Plan may be given to the Company electronically, 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). Notices sent by post shall be deemed to have been given on the day following the date of posting. 

21.5    Benefits
under the Plan shall not be pensionable. 

21.6    The
Company, or where the Committee so directs any Subsidiary, shall pay the appropriate stamp duty on behalf of Participants in respect of any transfer of Shares on the exercise of
Business Performance Awards. 

21.7    The
rules of the Plan shall be governed by, and construed in accordance with, the laws of England and Wales. 

13

  

 
 

CONTENTS    
    

	CLAUSE
 
	 	PAGE

	1.	 	DEFINITIONS	 	2
	

2.	
 	

GRANT OF BUSINESS PERFORMANCE AWARDS	
 	

4
	

3.	
 	

PERFORMANCE CONDITIONS	
 	

5
	

4.	
 	

PLAN LIMITS	
 	

5
	

5.	
 	

INDIVIDUAL LIMITS	
 	

6
	

6.	
 	

DIVIDENDS	
 	

6
	

7.	
 	

VESTING OF BUSINESS PERFORMANCE AWARDS	
 	

6
	

8.	
 	

LAPSE OF BUSINESS PERFORMANCE AWARDS	
 	

7
	

9.	
 	

CESSATION OF EMPLOYMENT	
 	

7
	

10.	
 	

RELEASE OF BUSINESS PERFORMANCE AWARDS	
 	

8
	

11.	
 	

GENERAL OFFER FOR THE COMPANY	
 	

9
	

12.	
 	

SCHEME OF ARRANGEMENT	
 	

9
	

13.	
 	

VOLUNTARY WINDING-UP	
 	

10
	

14.	
 	

DETERMINATION OF VESTING LEVEL	
 	

10
	

15.	
 	

EXCHANGE OF BUSINESS PERFORMANCE AWARDS	
 	

11
	

16.	
 	

DEMERGER	
 	

11
	

17.	
 	

ADJUSTMENT OF BUSINESS PERFORMANCE AWARDS	
 	

11
	

18.	
 	

RIGHTS ATTACHING TO SHARES ISSUED OR TRANSFERRED PURSUANT TO AWARDS	
 	

12
	

19.	
 	

AVAILABILITY OF SHARES	
 	

12
	

20.	
 	

ADMINISTRATION AND AMENDMENT	
 	

12
	

21.	
 	

GENERAL	
 	

12
	

CONTENTS	
 	

14

14

QuickLinks

THE PRUDENTIAL GROUP PERFORMANCE SHARE PLAN

CONTENTS

PRUDENTIAL PLC THE PRUDENTIAL BUSINESS UNIT PERFORMANCE PLAN

Approved by the Company in general meeting on 18 May 2006 and amended by the board of directors 29 September 2006

THE PRUDENTIAL BUSINESS UNIT PERFORMANCE PLAN

CONTENTSExhibit 4.2  

PRIVATE
AND CONFIDENTIAL 

DATED

18
October 2006 

PRUDENTIAL
SERVICES LIMITED (1) 

and 

BARRY
STOWE (2) 

and

PRUDENTIAL
PLC (3) 

EXECUTIVE DIRECTOR CONTRACT OF EMPLOYMENT 

1

   
PARTIES 

	(1)
	PRUDENTIAL
SERVICES LIMITED of Laurence Pountney Hill, EC4R 0HH ("the Company") and

	(2)
	Barry
Stowe of 31-33 Mount Kellett Road #802, The Peak, Hong Kong ("the Executive")

	(3)
	PRUDENTIAL
PLC of Laurence Pountney Hill, London, EC4R 0HH ("Prudential") 

1.     DEFINITIONS  

In
this Agreement unless the context otherwise requires:- 

"Board"
means the Board of Directors of Prudential; 

"Commencement
Date" means 26 September 2006; 

"Prudential
Group" means Prudential and each of its subsidiaries as "subsidiaries" is defined by section 736 of the Companies Act 1985. 

2.     APPOINTMENT  

	(1)
	The
Company shall employ the Executive and the Executive shall serve the Company as Chief Executive of Prudential Assurance Corporation Asia and in other such capacity as may be
agreed ("the Appointment"). The Executive shall report to the Group Chief Executive.

	(2)
	The
Appointment is deemed to be effective from the Commencement Date and shall, without prejudice to the provisions of clause 11(2), continue unless and until terminated by the
Company giving to the Executive not less than 12 months' prior written notice to expire at any time or the Executive giving to the Company not less than not less than 12 months' prior
written notice to expire at any time.

	(3)
	Notwithstanding
Clause 2(2) above, the Appointment shall automatically terminate without notice on the Executive attaining the age of 60 save that if the Executive is or
becomes a person to whom the Employment Equality (Age) Regulations 2006 apply, the age of 65 shall be substituted for the reference to the age of 60. 

3.     DUTIES OF THE EXECUTIVE  

	(1)
	During
the Appointment the Executive shall use his best endeavours to promote the interests of the Company and each company in the Prudential Group and shall carry out his duties with
all due expertise, diligence and technical skill, giving at all times the full benefit of his knowledge and experience.

	(2)
	The
Executive shall perform such duties and exercise such powers in relation to the conduct and management of the affairs of the Prudential Group as may from time to time reasonably
be assigned or communicated to or vested in him by the Board consistent with the nature of the Appointment.

	(3)
	Where
notice of termination has been served by either the Company or the Executive whether in accordance with clause 2(2) or otherwise, the Company shall be under no obligation
to provide work for or assign any duties to the Executive for the whole or any part of the relevant notice period and may require him:

	(i)
	not
to attend any premises of the Company or any other company in the Prudential Group; and/or 

2

 

	(ii)
	to
resign with immediate effect from any offices he holds with the Company or any other company in the Prudential Group (and any related trusteeships); and/or

	(iii)
	to
refrain from business contact with any customers, clients or employees of the Company or any other company in the Prudential Group; and/or

	(iv)
	to
take any accrued holiday during any period of suspension under this clause 3(3). 

The
provision of clause 4(2) shall remain in full force and effect during any period of suspension under this clause 3(3). For the avoidance of doubt the Executive will continue to be
bound by duties of good faith and fidelity to the Company in any period during which he is not required to attend work. 

	(4)
	The
Board may also suspend all or any of the Executive's duties and powers during any period in which the Company and/or the Board is carrying out an investigation into any alleged
act or default of the Executive. Such a suspension shall be on such terms as the Board considers expedient (including a term that the Executive shall not attend at the Company's premises during such
suspension) providing that:

	(i)
	the
Board on or before such suspension notifies the Executive in writing of such grounds; and

	(ii)
	during
such suspension the Executive shall be entitled to the remuneration and benefits due under this Agreement.

	(5)
	The
Executive shall at all times promptly give to the Company and the Board (in writing if so required) all such information and explanations concerning the affairs of any company
within the Prudential Group as the Company or the Board shall require and of which the Executive is aware.

	(6)
	The
Executive shall comply with all instructions and directions from time to time laid down by the Company and/or the Board for senior executives including those rules relating to
holding and dealing in the shares of Prudential Group. The Executive shall also comply with the requirements laid down by all external regulatory bodies.

	(7)
	The
Executive shall allow the Company supervised access on reasonable notice to all or any of the properties in which he resides from time to time in order for the Company to assess,
and, if the Company considers it desirable, to carry out at its own expense those security measures which the Company may consider advisable for the protection of the Executive. 

4.     PERFORMANCE OF DUTIES  

	(1)
	During
the continuance of the Appointment, the Executive shall (unless prevented by ill-health or accident or otherwise directed by the Board) devote such of his time,
attention and abilities to the business and interests of the Company or any other company in the Prudential Group as the proper performance of his duties hereunder demands.

	(2)
	The
Executive shall not (unless otherwise agreed by the Company and/or the Board) undertake any other business or profession, or be, or become directly or indirectly concerned, or
interested in any other business or profession except as holder or beneficial owner, for the purpose only of a passive minority investment, of securities dealt in or on any recognized stock exchange
(not exceeding 5 per cent of the total number or value of such securities from time to time in issue).

	(3)
	The
Executive shall perform his duties at such offices of the Company in Asia or London or at such other locations as may be agreed from time to time as the Company or the Board may
from time to time reasonably require. 

3

 

5.     REMUNERATION  

	(1)
	During
the Appointment the Company will pay the Executive an annual salary as separately notified, to accrue from day to day and to be payable by equal monthly instalments in arrears
to a bank nominated by the Executive. The rate of salary shall be subject to periodic review but shall not be reduced without the prior written agreement of the Executive. The Company reserves the
right to withhold or deduct from the Executive's salary any amount owed by the Executive to the Company or any company in the Prudential Group.

	(2)
	Subject
to the condition below, the Executive will be provided with:

	(a)
	a
retirement benefit allowance of 25% of salary.

	(b)
	a
death in service benefit equal to four times the Executive's salary. 

Payment
of the retirement benefit allowance is subject to the Executive's undertaking that he will use the retirement benefit allowance to provide income and/or capital for himself in retirement. By
signing this Agreement, the Executive gives that undertaking. 

The
Executive's retirement benefit allowance will be paid as a salary supplement. 

Provision
of death in service benefits is subject to the provision of medical evidence satisfactory to the provider. 

Both
the retirement benefit allowance and the premiums paid by the Company to the special life assurance policy for the Executive's death in service benefits are taxable benefits. 

	(3)
	The
Executive must notify the Company as early as practicable on the first day of any absence due to sickness or other incapacity. Subject to production, if requested, of medical
certificates satisfactory to the Company, full remuneration will continue to be payable notwithstanding the Executive's incapacity for work due to sickness or accident (unless and until the
Appointment shall be determined under any terms hereof) for the first six months of such incapacity. During this period of incapacity, the Company shall only give notice terminating the Appointment on
grounds of redundancy, falling within section 139 of The Employment Rights Act 1996 or those circumstances as set out in clause 11(2). Thereafter the Company may at its discretion
discontinue the payment of remuneration under this Agreement in which event the rules of the Prudential Staff Long Term Incapacity Scheme, as from time to time in force, will apply to the Executive.

	(4)
	If
the Executive needs to undergo a medical examination at the request of the Company, the cost of this will be met by the Company and the Company's medical adviser will be entitled
to receive a copy of any report produced, to discuss it with the doctor who produced it and to discuss its conclusions with the Company.

	(5)
	If
the Executive is incapable of performing his duties by reason of injury sustained wholly or partly as a result of negligence, nuisance or breach of any statutory duty on the part
of any third party all payments made to the Executive by the Company shall (insofar as lawful) be by way of interest free loan repayable to the Company only when and to the extent that compensation is
recovered for loss of earnings from that third party by legal action or otherwise in so far as it is not repayable to social security authorities.

	(6)
	The
Executive, his wife and his unmarried children below the age of 18 (or 24 if in full time education) will be eligible free of charge to participate with effect from the
Commencement Date until termination of employment in the Prudential Group medical insurance scheme. 

4

 
	(7)
	The
Executive is eligible to participate in the remuneration plans available from time to time to senior executives of the Prudential Group (subject to the rules governing the
availability of those benefits generally) which currently include:

	(a)
	the
Prudential Group Performance Share Plan ("PSP");

	(b)
	the
Prudential Business Unit Performance Plan ("BUPP");

	(c)
	the
Annual Incentive Plan ("AIP");

	(d)
	the
Prudential International Savings Related Share Option Scheme ("SAYE Scheme"), 

details
of which have been supplied to the Executive. 

	(8)
	Participation
in the Prudential PSP, BUPP, AIP and any other incentive arrangement and the SAYE Scheme is a matter entirely separate from the Executive's terms and conditions of
employment; the Company has no contractual obligation to invite the Executive's participation in any plan cycle; and in particular if the Executive's employment shall terminate for whatever reason
(whether lawfully or in breach of contract) he shall not be entitled to any compensation for any loss of any right or benefit or prospective right or benefit under any scheme which he might otherwise
have enjoyed whether such compensation is claimed by way of damages for wrongful dismissal or other breach of contract or by way of compensation for loss of office or otherwise. 

6.     EXPENSES  

The
Company, on production of the relevant receipts and/or invoices, shall reimburse the Executive for all travelling, hotel, entertainment and other out-of-pocket expenses
properly incurred by him from time to time in the execution of his duties hereunder in accordance with the relevant rules of the Company for the time being in force. 

7.     HOLIDAY  

The
Executive shall be entitled to such holiday with pay in each calendar year (in addition to statutory holidays) as the proper performance of his duties hereunder permits and in accordance with the
guidelines laid down by the Company from time to time. 

8.     TAX  

The
Executive is responsible for ensuring the appropriate tax is paid on his earnings. The Company will meet the costs of obtaining professional tax advice from an organisation acceptable to the
Company. 

9.     ASSIGNMENT IN HONG KONG  

While
the Executive is based in Hong Kong the Company will provide allowances as agreed for: 

	(a)
	expenses
of accommodation in Hong Kong including the cost of essential services i.e. water, gas and telephone but excluding the cost of personal foreign phone calls.

	(b)
	home
leave for the Executive and his family between Hong Kong and the US per annum.

	(c)
	the
cost of appropriate school fees for the Executive's children.

	(d)
	the
cost of storage of personal effects. 

Subject
to prior written approval by the Group Chief Executive, the Company will pay the entrance fees and annual subscriptions for those clubs to which it is appropriate the Executive belongs in
order to undertake his role effectively. 

5

 

10.   NON-SOLICITATION  

	(1)
	The
Executive undertakes that during the Appointment and (subject to clause 10(2)) for a period of 12 months following the termination of the Appointment (the "Exclusion
Period") he shall not whether on his own account or otherwise and whether directly or indirectly:

	(a)
	solicit,
interfere with, endeavour to entice away or induce to leave their employment any director or senior manager who is then or was at the date of termination of the Appointment
an employee of or engaged by the Company or any other company within the Prudential Group and with whom the Executive had business dealings during the course of his employment in the 12 month
period immediately prior to the termination of the Appointment. Nothing in this clause shall prohibit the seeking or doing of business not in direct or indirect competition with the business of the
Company or any company within the Prudential Group; or

	(b)
	employ
any person who is then or was at the date of termination of the Appointment a director or senior manager of the Company or any Company within the Prudential Group with whom the
Executive had material contact or who reported to the Executive at any time during the period of 12 months immediately before the termination of the Appointment.

	(c)
	solicit,
interfere with or endeavour to or actually entice away from the Company or any company within the Prudential Group business orders, or custom for products or services similar
to those being provided by the Company or any company within the Prudential Group from any person, firm or corporation who was at the date of termination of the Appointment, or had been at any time
within the year ending on that date, a customer or in the habit of doing business with the Company or any company in the Prudential Group and with whom the Executive was directly concerned in the
twelve months before the termination of the Appointment. Nothing in this clause shall prohibit the seeking or doing of business not in direct or indirect competition with the business of the Company
or any company within the Prudential Group; or

	(d)
	carry
on, set up, be employed, engaged or interested in a business anywhere in the UK, Europe, US or Asia which is or is about to be in competition with the business of the Company or
any company within the Prudential Group as at the date of with which the Executive was actively involved during the 12 month period immediately prior to termination of the Appointment. The
provisions of this clause 10(1)(d) shall not, at any time following the termination of the Appointment, prevent the Executive from holding shares or other capital not amounting to more than 3%
of the total issued share capital of any company whether listed on a recognised stock exchange or not and, in addition, shall not prohibit the seeking or doing of business not in direct or indirect
competition with the business of the Company or any company within the Prudential Group.

	(2)
	The
period during which the restrictions referred to in clause 10 shall apply following the termination of the Appointment shall be reduced by the period of notice actually
served. The amount of time during which, if at all, the Company suspends the Employee under the provision of clause 3(3), shall also reduce the period during which the restrictions referred to
in clause 10 shall apply.

	(3)
	The
Executive acknowledges and agrees that:

	(a)
	each
of sub-clauses 10(1)(a) (b) (c) and (d) hereof constitute an entirely separate and independent restriction on him;

	(b)
	the
duration extent and application of each of the restrictions are no greater than is necessary for the reasonable protection of the proper interests of the Prudential Group; and 

6

 

	(c)
	if
any such restriction is found by any court of competent jurisdiction to be void or unenforceable as going beyond what is reasonable in the circumstances for the protection of the
interests of the Prudential Group but would be valid if part of the wording was deleted and/or the period thereof was reduced and/or the territory concerned was reduced the restriction shall apply
within the jurisdiction of that court with such modifications as may be necessary to make it valid and effective. 

11.   TERMINATION OF EMPLOYMENT  

	(1)
	The
Appointment may be terminated by either party by notice given in accordance with Clause 2.

	(2)
	Notwithstanding
the other provisions of this Agreement and without prejudice to the rights and remedies of the Company for any breach of this Agreement, and to the Executive's
continuing obligations under Clauses 10 and 13, the Company shall at any time be entitled by notice in writing to the Executive to terminate the Appointment immediately in any of the following
circumstances, namely:

	(a)
	if
he is or becomes bankrupt or has a receiving order made against him or compounds with his creditors or otherwise takes advantage of any statute for the time being in force offering
relief for insolvent debtors; or

	(b)
	if
he is guilty of serious misconduct or behavior such as to bring any company in the Prudential Group into disrepute (including but without limitation the commission of a criminal
offence (excluding traffic offences) or commits any serious breach of any of his obligations to the Company or any other company in the Prudential Group (whether under this Agreement or otherwise) and
such misconduct behaviour or breach justifies summary dismissal; or

	(c)
	if
he refuses to comply with any lawful orders or directions reasonably given to him by the Company or the Board or neglects so to comply with material adverse consequences for the
Prudential Group; or

	(d)
	if
he fails or refuses to perform substantially the duties of the position which he holds under this Agreement or engages in wilful or reckless conduct injurious to or damaging to the
reputation of the Company or any other company within the Prudential Group; or

	(e)
	if
he is prevented from carrying out his duties by reason of a personal disqualification by an industry regulator, caused by reasons attributable to the Executive; or

	(f)
	commits
any serious or repeated breach of any of his obligations under this Agreement or the Appointment.

	(3)
	The
Executive shall have no claim against the Company for damages or otherwise by reason of such termination. Any delay or forbearance by the Company in exercising any such right of
termination shall not constitute a waiver of its rights in respect of any subsequent occurrence giving rise to such a right.

	(4)
	Without
prejudice to the Transfer of Undertakings (Protection of Employment) Regulations 1981, if at any time during this Agreement the Executive's employment is terminated by reason
of reconstruction or amalgamation of the Company and the Executive is offered employment with any concern or undertaking resulting from such reconstruction or amalgamation upon terms and conditions no
less favourable than the terms of this Agreement and of similar status then the Executive shall have no claim against the Company in respect of the termination of the Appointment. 

7

 
	(5)
	The
Executive shall promptly deliver to the Company upon the date of termination:

	(a)
	any
credit cards or any property provided by the Company or any other company within the Prudential Group; and

	(b)
	all
lists of clients or customers, correspondence, books, and all other documents, papers and records which may have been prepared by him or have come into his possession in the
course of his employment and the Executive shall not be entitled to and shall not retain any copies thereof: title and copyright therein shall at all times remain in the Company. The Company will on
request make available copies of board minutes and supporting documents which the Executive reasonably requires in connection with any legal or regulatory proceedings in which he is or may become
involved.

	(6)
	In
the event that the Appointment is terminated under this clause or otherwise and the Executive becomes entitled to any compensation in connection with the Appointment or its
Termination, the Company shall be entitled to pay any such compensation to the Executive over 12 monthly installments payable on the last day of every month, where the amount of each monthly
installment shall be equal to A minus B, where A is equal to the total compensation payable to the Executive divided by 12, and, B is equal to the total earnings of the Executive (less required
deductions for income tax and employees' social security contributions) referable to any engagement or employment that the Executive has carried out during that month. 

12.   EXECUTIVE'S POSITION AS DIRECTOR  

	(1)
	The
duties of the Executive as a director of any company within the Prudential Group shall be subject to the Articles of Association of the relevant company for the time being and
(subject to sub-clause (2) below) shall be separate from and additional to his duties pursuant to the Appointment. The Executive's salary under this Agreement is inclusive of any
remuneration to which the Executive may be entitled as a director of Prudential or any other company within the Prudential Group.

	(2)
	If
the Executive is removed from office as a director of Prudential during the Appointment by any resolution of a general meeting or of the Board or by not being
re-elected after retiring by rotation pursuant to the Articles of Association of Prudential the Executive acknowledges and agrees that such removal or cessation shall not amount to a
breach of the Appointment and shall not entitle the executive to bring a claim of constructive dismissal, but such removal or cessation shall automatically constitute the Company giving notice to
terminate the Appointment within the provisions of clause 2(2).

	(3)
	Upon
termination of the Appointment for whatever reason the Executive shall forthwith in writing resign his position as a director of Prudential and of any other company within the
Prudential Group, without compensation for loss of office but without prejudice to any other claims the Executive may have for damages for breach of this Agreement.

	(4)
	If
the Executive fails to comply with his obligations in sub-clause 12(3) hereof, he hereby irrevocably authorises Prudential to appoint some person in his name and
on his behalf to sign any documents and/or do all things necessary to give effect to the resignations referred to in sub-clause 12(3) above. 

13.   CONFIDENTIAL INFORMATION  

	(1)
	The
Executive shall not, either during the continuance of the Appointment or thereafter, use to the detriment or prejudice of the Company or any other company within the Prudential
Group or, except in the proper course of his duties, divulge to any person any Confidential Information concerning the business or affairs of the Company or any other company within the Prudential 

8

 

Group
which may have come to his knowledge during his employment. For the purposes of this Agreement "Confidential Information" shall mean details of suppliers and their terms of business, details of
customers, prices charged to and terms of business with customers, marketing plans and sales forecasts, any proposals relating to the acquisition or disposal of a company or business or any part
thereof, details of employees and officers and of the remuneration and other benefits paid to them and any other information which may reasonably be classified as confidential, but so that these
instructions shall cease to apply to any information which shall become available generally otherwise than through the fault of the Executive. The restrictions in this clause shall not apply: 

	(i)
	to
any disclosure or use authorised by the Board or required by law or by the Appointment; or

	(iii)
	so
as to prevent the Executive from using his own personal skill in any business in which he may be lawfully engaged after the Appointment is ended, or

	(iii)
	to
prevent the Executive making a protected disclosure within the meaning of s43A of the Employment Rights Act 1996.

	(2)
	The
Executive shall maintain all necessary and proper security precautions when in the possession of Confidential Information and shall remove Confidential Information (in
non-electronic form) from Prudential's premises only to the extent it is strictly necessary for the proper performance of his duties hereunder. The Executive will comply with the Company's
standards relating to confidentiality of information in electronic form. 

14.   GRATUITIES AND CODES OF CONDUCT  

	(1)
	Without
the Company's permission the Executive shall not directly or indirectly accept any commission, rebate, discount or gratuity, in cash or in kind, from any person who has or is
likely to have a business relationship with any company in the Prudential Group. Express permission is not required for reasonable business entertainment such as lunches, sporting, cultural or social
events undertaken in the normal course of the Executive's duties and in accordance with any directions given by the Company.

	(2)
	The
Executive shall comply with all codes of conduct from time to time adopted by the Board and with all applicable rules and regulations of The Stock Exchange and any other relevant
regulatory body. 

15.   DATA PROTECTION  

	(1)
	The
Executive consents to the Company and any company within the Prudential Group processing data relating to him at any time (whether before, during or after the Employment) for the
following purposes:

	(i)
	performing
its obligations under the Agreement (including remuneration, payroll, pension, insurance and other benefits, tax and social security obligations);

	(ii)
	the
legitimate interests of the Company and any company within the Prudential Group including for the purposes of any sickness policy, working time policy, investigating acts or
defaults (or alleged or suspected acts or defaults) of the Executive, security, management forecasting or planning and negotiations with the Executive;

	(iii)
	processing
in connection with any corporate transaction in which the Company or any company within the Prudential Group is involved or any transfer of any business in which the
Executive performs his duties; and 

9

 

	(iv)
	transferring
data to countries outside the European Economic Area for any of the purposes referred to in (i), (ii) or (iii) above.

	(2)
	The
Executive explicitly consents to the Company and any company within the Prudential Group processing sensitive personal data (within the meaning of the Data Protection Act 1998) at
any time (whether before, during or after the Appointment) for the following purposes:

	(i)
	where
the sensitive personal data relates to the Executive's health, any processing in connection with the operation of the sickness policy of the Company (or any company within the
Prudential Group) or any relevant benefit scheme or monitoring absence;

	(ii)
	where
the sensitive personal data relates to an offence committed, or allegedly committed, by the Executive or any related proceedings, processing for the purpose of the disciplinary
purposes of the Company or of any company within the Prudential Group;

	(iii)
	for
all sensitive personal data, any processing in connection with any merger, sale or acquisition of a company or business in which the Company or any company within the Prudential
Group is involved or any transfer of any business in which the Executive performs his duties; and

	(iv)
	for
all sensitive personal data, any processing in the legitimate interests of the Company or any company within the Prudential Group. 

16.   ASSIGNMENT  

The
Company may assign its interest in this Agreement to any other company within the Prudential Group with the agreement of the Executive such agreement not to be unreasonably withheld. 

17.   STATUTORY REQUIREMENTS  

The
Executive shall also be subject to the terms set out in the Schedule attached to this Agreement in connection with the Employment Rights Act 1996. 

18.   NOTICES  

Any
notice or other document to be given hereunder shall either be delivered personally or be sent by first class recorded delivery or fax. The address for service on the Company shall be its
registered office for the time being and the address for service on the Executive shall be his last known place of residence. A notice shall be deemed to have been served as follows:- 

	(a)
	if
personally delivered, at the time of delivery;

	(b)
	if
posted, at the expiration of 48 hours after the envelope containing the same was delivered into the custody of the postal authorities or a delivery company;

	(c)
	if
sent by fax, at the time of dispatch. 

In
proving such service it shall be sufficient to prove that personal delivery was made, or that the envelope containing such notice was properly addressed and delivered into the custody of the postal
authorities or delivery company as a pre-paid, first class, recorded delivery letter, or that the fax was properly addressed and dispatched as the case may be. 

19.   MISCELLANEOUS  

	(1)
	This
Agreement forms the entire understanding of the parties as to its subject matter and both parties acknowledge that neither of them has entered into this Agreement in reliance
upon any 

10

 

representation
warranty or undertaking which is not set out in this Agreement as forming part of the contract of employment of the Executive. 

	(2)
	Any
reference in this Agreement to an Act of Parliament shall be deemed to include any statutory modification or re-enactment thereof whenever made.

	(3)
	The
headings shall be disregarded in construing this Agreement.

	20.
	JURISDICTION

This
Agreement is governed by, and shall be construed in accordance with, the laws of England and Wales and the parties shall submit to the exclusive jurisdiction of the courts of England and Wales. 

IN
WITNESS the hands of the Executive and of the duly authorized representative of the Company on the date first above written. 

11

 

THE SCHEDULE  

In
accordance with the Employment Rights Act 1996, the following terms of the Executive's appointment apply on the date of the Agreement as provided therein:- 

        (a)   Remuneration—Clause 5(1) 

        (b)   Hours of Work—There are no fixed hours of work—Clause 4 

        (c)   Holidays—Clause 7 

        (d)   Sickness and Injury—the Executive is entitled to be paid during any period of absence from work due to
sickness or injury, subject however to the provisions of sub-clause 5(3) 

        (e)   Pension Arrangements—Clause 5(2) 

        (f)    Notice—Clause 2(2) 

        (g)   Job Title—Clause 2(1) 

        (h)   Grievance Procedure—If the Executive seeks to redress any grievance relating to his employment he should
apply in writing to the Chief Executive of the Prudential Group. 

        (i)    Disciplinary Procedure—There are no disciplinary rules applicable to senior executives so that any
disciplinary action relevant to the Executive will be considered and handled according to the particular circumstances and the Executive's position. Should the Executive be dissatisfied with any
disciplinary decision he/she should appeal in writing to the Chief Executive of the Prudential Group. 

        (j)    Date of Commencement of Employment—The date of commencement of employment (i.e. date of joining Prudential)
is the Commencement Date—Clause 1. 

        (k)   Place of work—Clause 4(3). 

        (l)    Collective Agreements which directly affect the Executive's terms and conditions—none. 

12

 

	SIGNED by Mark Tucker

on behalf of PRUDENTIAL	 	 
	

/s/ Mark Tucker
	
 	

 
	

In the presence of:-	
 	

 
	

/s/ A Croney
	
 	

 
	

Date: 18/10/2006	
 	

 
	

SIGNED by BARRY STOWE	
 	

 
	

/s/ Barry Stowe
	
 	

 
	

In the presence of:-	
 	

 
	

/s/ A Croney
	
 	

 
	

Date:    18/10/2006	
 	

 
	

SIGNED by Mark Tucker

on behalf of PRUDENTIAL SERVICES LIMITED	
 	

 
	

/s/ Mark Tucker
	
 	

 
	

In the presence of:-	
 	

 
	

/s/ A Croney
	
 	

 
	

Date:    18/10/2006	
 	

 

13

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