Document:

exv4w1

Exhibit 4.1

4.1 Equalisation Agreement between Unilever N.V. and Unilever PLC

 

 

CONTENTS

 

	 	 	 	 	 
	Consolidated text of the Agreement dated 28 June 1946 between Unilever
N.V. and Unilever PLC as amended by a Supplemental Agreement dated 20
July 1951 and a Second Supplemental Agreement dated 21 December 1981,
commonly known as “the Equalisation Agreement”.
	 	 	1	 
	 
	 	 	 	 
	Agreement dated 28 June 1946
	 	 	6	 
	 
	 	 	 	 
	Supplemental Agreement dated 20 July 1951
	 	 	11	 
	 
	 	 	 	 
	Second Supplemental Agreement dated 21 December 1981
	 	 	12	 
	 
	 	 	 	 
	Third Supplemental Agreement dated 15 May 2006
	 	 	16	 
	 
	 	 	 	 
	Fourth Supplemental Agreement dated 20 May 2009
	 	 	17	 

      

 

 

Consolidated text of an Agreement dated the 28th day of June, 1946 between UNILEVER N.V.
(hereinafter called “the Dutch Company”) and UNILEVER PLC (hereinafter called “the English
Company”) as amended by Supplemental Agreement dated the 20th day of July, 1951, Second
Supplemental Agreement dated the 21st day of December, 1981, Third Supplemental Agreement dated the
15th day of May 2006 and Fourth Supplemental Agreement dated the 20th day of May 2009.

NOW
THIS AGREEMENT WITNESSETH as follows:–

	1.	 	In this Agreement unless the context shall otherwise require
the following expressions shall have the following meanings:–
	 
	 	 	“THE PREFERENCE SHARES OF THE DUTCH COMPANY”
shall mean the issued shares of the Dutch Company
outstanding at any time and ranking in priority to the
Ordinary Shares of the Dutch Company.
	 
	 	 	“THE PREFERENCE SHARES OF THE ENGLISH COMPANY”
shall mean the issued shares of the English Company
outstanding at any time and ranking in priority both to
the Ordinary Shares and to the Deferred Shares of the
English Company.
	 
	 	 	“SHARES” shall include Stock.
	 
	 	 	“SHAREHOLDERS” shall include Stockholders.
	 
	 	 	“FINANCIAL PERIOD” shall mean a financial year of either
of the parties hereto or any other period for which the
accounts of either party hereto may by mutual agreement
be made up for the purpose of ascertaining and paying
dividends.
	 
	 	 	“DIVIDENDS” shall mean in the case of each Company the
full dividends receivable by a Shareholder together with any
tax payable by the Company in respect of such dividends
but before deducting any tax deductible by the Company
from such dividends.
	 
	 	 	“OPEN RESERVES” shall mean in the case of each
Company all reserves other than:–

	 	 	 	(i) reserves not legally available for distribution,
	 
	 	 	 	(ii) reserves properly made and still required to meet
any specified loss, liability or contingency and
	 
	 	 	 	(iii) any deferred dividend reserve or
equalisation reserve.

	 	 	“FREE RESERVES” shall mean in the case of each Company the amount of any open reserves increased or reduced by the
balance of profit and loss account existing at the beginning
of any financial period.
	 
	 	 	“CURRENT PROFITS” shall mean in the case of each Company
the profits which may lawfully be distributed at the expiration
of each financial period before making any provision for
open reserves but excluding any open reserves or balance of profit and loss account (whether credit or debit but in
the case of a debit subject to the proviso next hereinafter
contained) existing at the beginning of the financial period.

	 	 	Provided that in the event of there being a deficiency on
the Profit and Loss Account at the commencement of the
period which is in excess of the open reserves at that date
then for the purposes of this definition the profits available
for distribution shall be reduced by and to the extent of
such excess.
	 
	 	 	“SURPLUS ASSETS” shall mean in the case of each Company
any assets remaining after repayment of all amounts due in
liquidation to the holders of the Preference Shares of the
Dutch Company or of the English Company as the case
may be.
	 
	 	 	“RELEVANT RATE OF EXCHANGE” shall mean the rate of
exchange as determined by the Dutch Company and the
English Company in such manner as they shall deem
appropriate between the currency or currencies in which
dividends are to be paid on the Ordinary Share Capital of
the Dutch Company and the currency or currencies in
which dividends are to be paid on the Ordinary Share
Capital of the English Company on the day which is one
day prior to the date on which such dividends are to be
declared or resolved to be recommended or if it is not in
the opinion of the Dutch Company and the English
Company practicable to determine a representative rate of
exchange on that day on the next earlier day on which it is
in their opinion practicable to determine a representative
rate of exchange.
	 
	2.	 	So long as this Agreement remains in force the Dutch and
English Companies shall adopt the same financial periods
and for the purposes of this Agreement the Dutch and
English Companies shall adopt the same principles of
accountancy and the same methods of determining current
profits and free reserves so as to include the Companies’
proportion of current profits and free reserves attributable
respectively to their interests direct or indirect in subsidiary
allied and associated companies less the Companies’
proportion of losses so attributable and applying in the case
of subsidiary allied and associated companies the same
meanings to the expressions “current profits” and “free
reserves” as are applied in Clause 1 hereof in the case of
the Dutch and English Companies.
	 
	3.	 	If the current profits of one Company shall be insufficient
to provide in full the dividends (and arrears if any) on its
Preference Shares in respect of any financial period or if
there be no current profits the other Company shall to the
extent of its own current profits for the same financial
period after providing for the dividends (and arrears if any)
on its own Preference Shares be under obligation to make
good any loss incurred by the former Company during that
period together with any amount by which the deficiency
(if any) on profit and loss account at the commencement
of the period exceeds the open reserves at that date and
to make up the current profits of that Company to the
amount of the dividends (and arrears if any) on that

Equalisation
Agreement 2009     1

 

 

	 	 	Company’s Preference Shares to the close of such financial
period. If after such contribution has been received by the
former Company the current profits (including the amount so
received) of the former Company are still insufficient
for the purpose the deficiency shall in so far as the free reserves
of that Company have been utilised but are not sufficient for the
purpose be met by a further contribution from the other
Company to the extent of its free reserves. Any contribution so
made shall in so far as not utilised for making good any such
loss and/or deficiency on Profit and Loss Account as aforesaid be
distributed by the Company to whom such payment is made but
if not so distributed shall be repaid forthwith to the Company by
whom the contribution was made.
	 
	4.	 	(a) All dividends on the Ordinary Share Capitals of the
Dutch and English Companies shall in the case of interim
dividends be declared and in the case of final dividends be
resolved to be recommended by the Boards of the Dutch
and English Companies on the same day.
	 
	 	 	(b) The Boards of the two Companies shall decide from
time to time what portion of the aggregate of the current
profits of the two Companies for each financial period and
free reserves should be distributed by way of dividend on
the Ordinary Share Capitals of the Dutch and English
Companies for that period for which purpose the Boards
may take into account the existence of the following
provisions of this Clause.
	 
	 	 	(c) The amount so decided shall (subject as provided in this
Clause) be utilised in providing for dividends on the Ordinary
Share Capitals of the Dutch and English Companies
respectively upon the footing that the dividend paid on every
EUR 0.16 nominal of capital in the Dutch Company at the
relevant rate of exchange shall be equal in value to the
dividend paid on every 3 1/9 pence nominal of capital in
the English Company.
	 
	 	 	(d) Notwithstanding the foregoing if the application of
sub-clause (c) of this Clause to the decision mentioned in
sub-clause (b) of this Clause:–

	 	 	 	(i) would result in the declaration or recommendation
of a dividend by one of the Companies which it would
be prevented by law from declaring; or
	 
	 	 	 	(ii) would because of movements in the relative parities
between the currencies in which dividends are to be paid
result in a level of dividend of one of the Companies
which (in the opinion of the Boards of the two
Companies) its Board (on the assumption for this
purpose that the Company concerned was the parent
company of the two Companies) would regard as
unreasonable to declare or recommend having regard
in particular to (1) the level of the corresponding
dividend in respect of the last preceding financial
period (2) the development of the aggregate of the
current profits of the Dutch and English Companies
expressed in the currency of the Company concerned
and (3) any special circumstances in the country of incorporation of that Company relevant to the decision
as to the level of dividend which would be reasonable;

	 	 	the Board of that Company may declare or recommend a
dividend differing from that resulting from sub-clauses (b)
and (c) of this Clause provided that in each case;

	 	 	 	(x) such dividend is of such a level as is reasonable in the
opinion of the Boards of both Companies having regard
in particular to the factors described in this sub-clause;
	 
	 	 	 	(y) the difference is dealt with in accordance with the
following provisions of this Clause; and
	 
	 	 	 	(z) the Boards of the two Companies make available to
their shareholders together with and in the same manner
as the announcement of the dividend a statement giving
the reasons why the provisions of this sub-clause have
been applied.

	 	 	(e) For the purpose of the following provisions of this Clause:–

	 	 	 	(i) “the Company declaring the lower dividend” shall
mean the Company declaring a dividend which upon
the footing referred to in sub-clause (c) of this Clause
shall be lower in value than the dividend declared by
the other Company; and
	 
	 	 	 	(ii) “the difference” shall mean the difference
calculated at the relevant rate of exchange between
the total amount of dividend declared on its Ordinary
Share Capital by the Company declaring the lower
dividend and the total amount of dividend it would
have to declare on its Ordinary Share Capital in order
to provide for a dividend which upon the footing
referred to in sub-clause (c) of this Clause would be
equal in value to that declared by the other Company.

	 	 	(f) Whenever it shall be decided in accordance with the
provisions of paragraph (i) of sub-clause (d) of this Clause
that a dividend shall be declared or recommended differing
from that which would result from sub-clauses (b) and (c)
of this Clause an amount equal to the difference shall be
credited to a “deferred dividend reserve” to be established
or adjusted as the case may be in the books of the Company
declaring the lower dividend and that Company shall apply
the whole of such deferred dividend reserve towards
declaration and payment of a dividend or dividends on
its Ordinary Share Capital as soon as practicable after this
becomes permitted by law. If at the date of declaration
of any such last-mentioned dividend that Company holds
any of its own Ordinary Shares the amount of the dividend
which would be payable in respect of them if they were
not so held shall be transferred from the deferred dividend
reserve to that Company’s free reserves.
	 
	 	 	(g) Whenever it shall be decided in accordance with the
provisions of paragraph (ii) of sub-clause (d) of this Clause
that a dividend shall be declared or recommended differing
from that which would result from sub-clauses (b) and (c) of this Clause an amount equal to the difference shall be
credited to an “equalisation reserve” to be established or
adjusted as the case may be in the books of the Company
declaring the lower dividend provided that if such an
equalisation reserve is at that time in existence in the books of
the other Company there shall first be deducted from the
amount of the difference the amount of that equalisation
reserve or such part thereof as is equal to the amount of the
difference and provided further that in such case the amount so
deducted shall be debited to that existing equalisation reserve.
Any amounts so to be deducted and debited shall be calculated
at the relevant rate of exchange.

2     Equalisation Agreement 2009

 

 

	 	 	(h) If at any time when a deferred dividend reserve or an
equalisation reserve is in existence in the books of either of
the two Companies:–

	 	 	 	(i) the amount paid up on its Ordinary Share Capital
shall be increased (otherwise than as a result of an
allotment or issue of shares to the holders of its
existing Ordinary Share Capital free of payment or
an allotment or issue of shares to the holders of its
existing Ordinary Share Capital pursuant to an offer of
such shares to such holders whether in any such case
the right to such shares or the right to accept such
an offer is or is not renounceable) and the amount
paid up on its Ordinary Share Capital comprised in
such increase ranks or will rank for any dividend to
be paid out of the existing deferred dividend reserve
or equalisation reserve under the provisions of this
Clause the amount of such reserve shall thereupon
be increased proportionately to the increase in the
paid up amount of its Ordinary Share Capital by the
transfer to such reserve of an appropriate part of that
Company’s free reserves; or
	 
	 	 	 	(ii) the amount paid up on its Ordinary Share Capital
shall be reduced (otherwise than by a reduction of
the amount paid up on each Ordinary Share) the
amount of such reserve shall thereupon be reduced
proportionately to the reduction in the paid up
amount of its Ordinary Share Capital by the transfer of
an appropriate part of such reserve to that Company’s
free reserves. This paragraph shall apply to a reduction
of the amount paid up on the Ordinary Shares of
either of the two Companies arising on a purchase
by that Company of its own shares as well as on a
reduction of that Company’s capital.

	 	 	(j) Notwithstanding the foregoing the power under paragraph
(ii) of sub-clause (d) of this Clause to declare or recommend
a dividend differing from that which would result from subclauses
(b) and (c) of this Clause shall not be used if and to
the extent that as a result thereof the amount to be credited
to any equalisation reserve by one of the Companies when
added to the amount (if any) already standing to the credit
of the equalisation reserve in the books of that Company
would exceed an amount equal to the annual average of
the aggregate dividends declared or recommended on the
Ordinary Share Capital of that Company in respect of the
three financial periods immediately preceding the financial period in respect of which the relevant dividend is being
declared or recommended. If any Ordinary Share Capital of
that Company has at any time been issued (otherwise than
as bonus shares as defined in Clause 9(b) hereof) on terms
that it ranks or will rank for dividend in respect of a part
only of the said three financial periods or for only some and
not the whole of the dividends declared or recommended
in respect of those periods then for the purposes of the
foregoing the said average shall be calculated as if all the
Ordinary Share Capital so issued had been issued at the
beginning of the first of the said three financial periods
and in respect of those periods the same rate or rates
of dividend had been declared or recommended on the
Ordinary Share Capital so issued as were declared or
recommended on that Company’s issued Ordinary Share
Capital provided that if the increase in the issued Ordinary
Share Capital shall be effected by way of a Rights issue
as defined in Clause 9(b) hereof the amount of such
additional Ordinary Share Capital to be treated as if issued
at the beginning of the first of the said financial periods
shall be reduced by an amount (to be announced at the
time when the issue is made) which the Boards of the two
Companies consider to be reasonable having regard to any
discount on current market price at which the Rights issue
shall be made.

	 	 	(k) If at any time one of the Companies shall have standing
to the credit of its equalisation reserve a sum equal to or
exceeding 70 per cent. of the maximum amount permitted
in accordance with sub-clause (j) of this Clause that
Company shall be entitled to apply the whole or part of its
equalisation reserve towards the declaration and payment
of a dividend or dividends on its Ordinary Share Capital.
If at the date of declaration of any such last-mentioned
dividend that Company holds any of its own Ordinary
Shares the amount of the dividend which would be
payable in respect of them if they were not so held shall be
transferred from the equalisation reserve to that Company’s
free reserves.
	 
	 	 	(l) If the current profits of one Company shall be insufficient
to enable it to pay any ordinary dividend declared or
recommended under sub-clause (c) or sub-clause (d) of this
Clause and if the Boards of the two Companies consider it
appropriate that Company shall require the other Company
to the extent of its own current profits remaining after
providing for the amount required to enable it to pay
the ordinary dividend so declared or recommended on
its own Ordinary Share Capital to pay forthwith to the
first-mentioned Company an amount sufficient to make
up the first-mentioned Company’s current profits to the
sum required to pay such dividend. If the current profits
(including the amount of any contribution received
pursuant to the provisions of this sub-clause) and the free
reserves of one Company are insufficient to enable it to pay
such dividend or to credit to deferred dividend reserve or to
equalisation reserve the amount required under sub-clauses
(f) (g) and (h) of this Clause the deficiency shall be met by
a contribution from the other Company to the extent of its
free reserves. For the purposes of this Clause the expression
“ordinary dividend” shall in the case of the English Company include (where necessary and appropriate) the
dividends on the preferential certificates outstanding under the
Co-Partnership Trust and on its Deferred Shares.

Equalisation Agreement 2009     3

 

 

	 	 	(m) Neither Company shall pay any dividend on its Ordinary
Share Capital larger than the one declared or recommended
to be declared by the Board of the Company concerned in
accordance with the preceding provisions of this Clause and
if notwithstanding this restriction either of the Companies
shall pay a larger dividend on its Ordinary Share Capital
such Company shall forthwith pay to the other Company a
sum equal to the extra amount which the other Company
would have to distribute to raise the dividend on its
Ordinary Shares for that period accordingly and if necessary
in the case of the English Company to pay the dividends on
the said preferential certificates and on its Deferred Shares.
In such circumstances such other Company may at such
times as it may in its discretion decide utilise the amount so
received by it in paying an extra dividend or such dividends
as the case may be and so long as and to the extent that
such extra dividend or such dividends are not so paid the
said amount together with interest thereon at the rate of
4 per cent. per annum shall be excluded in computing the
current profits and free reserves of that Company for each
subsequent financial period.

	5.	 	Any sums due from one Company to the other in
accordance with the provisions of Clauses 3 or 4 hereof
shall be deemed to have become due on the last day of
the financial period in respect of which the obligation has
arisen and shall bear interest from that date at the rate
of 4 per cent. per annum until payment.
	 
	6.	 	Neither Company shall (except as provided in Clause 7
hereof) distribute a dividend in specie.
	 
	7.	 	If one of the parties hereto shall go into liquidation
whether compulsory or voluntary

	 	 	(a) Accounts shall from time to time as and when necessary
be prepared and certified by the Auditors for the time
being (or the last Auditors) of both Companies showing at
the date of any account what amounts are in the case of
the liquidating Company available for distribution amongst
the shareholders of the liquidating Company and in the
case of the non-liquidating Company what amounts would
be available for distribution amongst the shareholders of
the non-liquidating Company on the footing that such
Company was then in liquidation and its assets realised and
the liabilities discharged.
	 
	 	 	(b) The amounts certified from time to time to be available
in cash for distribution amongst the shareholders of the
liquidating Company shall be applied to the payment to the
holders of the Preference Shares of the liquidating Company
of the amounts due to such shareholders in their due priorities.
In the event of the amounts finally available for distribution
amongst the shareholders of the liquidating Company being
insufficient to pay in full all sums due to the holders of the
Preference Shares of the liquidating Company but the account
of the non-liquidating Company showing a surplus after provision has been made for the full discharge of all amounts
payable to the holders of the Preference Shares of the non-liquidating
Company in a liquidation such surplus shall be applied to making good the deficiency aforesaid. Conversely
if the accounts of the non-liquidating Company shall show
that the non-liquidating Company is not in a position to
provide in full all amounts due in a liquidation of such
Company to its Preference Shareholders any deficiency shall
be made good by the liquidating Company out of any surplus
after payment in full of all amounts due in the liquidation
to the Preference Shareholders of the liquidating Company.

	 	 	(c) The surplus assets of both Companies after payment in
full to or provision made for the holders of the Preference
Shares of both Companies shall be available for making
distributions to the holders of the Ordinary Shares of the
liquidating Company on the basis that the surplus assets of
both Companies are deemed to be pooled and distributed
or allocated amongst the holders of the Ordinary Shares of
both Companies upon the footing that the sum paid or
allocated on every EUR 0.16 nominal of capital in the
Dutch Company at the rate of exchange on the day of
certification of the Accounts so to be prepared as aforesaid
on which the distribution and allocation are made shall be
equal in value to the sum allocated or paid on every 3 1/9
pence nominal of capital in the English Company on the
basis that each Company has borne or has to bear any tax
payable by the Company in respect of such distributions
but before deducting any tax deductible by the Company
from the sums so distributed provided always that before
making such distribution and allocation there shall be
allocated to the holders of Ordinary Shares of the relevant
Company or Companies sums equal to the amounts
(if any) standing for the time being to the credit of any
deferred dividend reserve and of any equalisation reserve.
Any amounts allocated under the provisions of this
sub-clause to the holders of the Ordinary Shares in the
non-liquidating Company shall be paid to or retained
by the non-liquidating Company.
	 
	 	 	(d) On the occasion of each account (except the final account)
no greater amount shall be distributed than is available
in cash for distribution in the liquidating Company and if
there shall be shown to be due by the liquidating Company
to the non-liquidating Company any sum necessary to
enable the non-liquidating Company to make provision
for a distribution on the above basis such sum shall be paid
forthwith to the non-liquidating Company by the liquidating
Company. No contribution shall be made by the non-liquidating
Company to the liquidating Company until the
final account has been taken.
	 
	 	 	(e) Any distribution which may be made in specie shall be
made in a manner certified by the Auditors for the time
being (or the last Auditors) of both Companies as complying
with the above basis.
	 
	 	 	(f) In calculating any amounts available for distribution
amongst the holders of the Ordinary Shares of both
Companies there shall be deducted an amount equal to
any contributions made by one Company to the other pursuant to the provisions of Clause 4 hereof and not distributed
by way of dividend on the Ordinary Shares of such other
Company together with interest thereon as provided in Clause 4
hereof which amount and interest shall be exclusively applied for
the benefit of the holders
of the Ordinary Shares of such other Company.

4     Equalisation Agreement 2009

 

 

	 	 	 	(g) In making any distribution or allocation under sub-Clause (c) hereof there shall be taken into account the amounts
due in a liquidation of the English Company to the holders
of its Deferred Shares.

	8.	 	If both the Dutch and English Companies shall be in
liquidation at the same time the provisions of Clause 7
hereof shall be applied mutatis mutandis.
	 
	9.	 	(a) Neither Company shall at any time issue any capital
without the consent in writing of the other nor reduce
its capital without the like consent.
	 
	 	 	(b) With regard to any future issue of Ordinary Capital the
following provisions shall apply:–

	 	 	 	(i) Issue of bonus shares, that is to say the issue free of
payment to shareholders of shares credited as fully
paid up, shall in principle only be made by the Dutch
and English Companies simultaneously and then only
upon the terms that the shares issued by way of bonus
shall be Ordinary Shares.
	 
	 	 	 	The Boards of the two Companies shall decide from time
to time what amounts should be distributed by way of
bonus shares. The amount decided shall be utilised in
issuing bonus shares to the Ordinary Shareholders of
the Dutch and English Companies respectively upon the
footing that the nominal amount of bonus capital to be
received by the holder of EUR 0.16 nominal of capital
in the Dutch Company shall bear the same proportion
to such EUR 0.16 nominal of capital held by him as the
nominal amount of bonus capital to be received by the
holder of 3 1/9 pence nominal of capital in the English
Company bears to such 3 1/9 pence nominal of capital
held by him. If the undistributed profits (including free
reserves but excluding any contributions made by one
Company to the other in pursuance of Clause 4 hereof
and not utilised for the purpose therein mentioned) of
one of the Companies shall be insufficient to provide
for the issue by that Company of bonus shares as so
decided the other Company shall be under obligation
to pay to it forthwith out of its undistributed profits
(including as aforesaid) any amount required to enable
it to make an issue as so decided.

	 	 	 	Any sums due from one Company to the other in accordance with the provisions of this Clause shall be
deemed to have become due on the day of authorisation
of the issue of the bonus shares and shall bear interest
from that date at the rate of 4 per cent. per annum
until payment.
	 
	 	 	 	(ii) “Rights” issues, that is to say the issue to
shareholders of shares on terms that each holder of a
specified number of shares is entitled to apply for and
have allotted a specified number of new shares at a
price less than the best obtainable on a public issue,
shall in principle be made by the Dutch and English
Companies simultaneously and then only upon the
terms that the shares issued as “rights” shall be
Ordinary Shares and upon the footing that the nominal
amount of capital offered for subscription to every
holder of EUR 0.16 nominal of capital in the Dutch
Company shall bear the same proportion to such EUR
0.16 nominal of capital held by him as the nominal
amount of capital offered for subscription to every
holder of 3 1/9 pence nominal of capital in the English
Company shall bear to such 3 1/9 pence nominal of
capital held by him and so that the amounts to be paid
by a subscriber of each EUR 0.16 nominal of capital in
the Dutch Company shall at the rate of exchange on
the day of decision by the Boards to make the issues
be equal in value to the amount to be paid by the
subscriber of each 3 1/9 pence nominal of capital in
the English Company.
	 
	 	 	 	(iii) Neither Company shall in principle issue Ordinary
Shares at any time at a price which when converted
into sterling or euros as the case may be at the rate of
exchange on the day of such issue would for a share
of a nominal amount of EUR 0.16 or 3 1/9 pence as
the case may be represent a subscription price lower
than 3 1/9 pence or EUR 0.16 as the case may be.
	 
	 	 	 	(iv) If at any time the Boards of the two Companies
decide that it is in the interests of the two Companies
that the principles set out in Sections (i), (ii) and (iii)
of this sub-Clause should not be applied then and in
every such case such measures shall be taken as will
be equitable to the Shareholders of both Companies
having regard to the recitals and the provisions in
these presents.

	10.	 	This Agreement shall be construed and have effect in all
respects as a contract made in England in accordance with
the laws of England and any dispute shall be settled by
arbitration in England under the Arbitration Acts 1950 to
1996 or any statutory modification or re-enactment thereof
from time to time in force.
	 
	11.	 	The parties to this Agreement do not intend that any term
of this Agreement should be enforceable, by virtue of the
Contracts (Rights of Third Parties) Act 1999, by any person
who is not a party to this Agreement.

Equalisation
Agreement 2009     5

 

 

THIS AGREEMENT is made the 28th day of June 1946 BETWEEN
LEVER BROTHERS & UNILEVER N.V. having its registered office at
Rotterdam in the Netherlands – (hereinafter called “the Dutch
Company”) of the one part and LEVER BROTHERS & UNILEVER
LIMITED having its registered office at Port Sunlight England
(hereinafter called “the English Company”) of the other part

WHEREAS:

	A.	 	By an Agreement (hereinafter referred to as “the 1937
Agreement”) dated the 31st day of December 1937 and
made between the Dutch Company of the one part and
the English Company of the other part after reciting (inter alia) that the English Company was an
amalgamation of Unilever Limited with Lever Brothers Limited and that it was
a condition of the amalgamation that the Dutch Company
and the English Company should enter into an Agreement
in the form of the 1937 Agreement to secure that the
rights attaching and the benefits accruing to each unit of
ownership in the English Company evidenced by £1
nominal of Ordinary capital and the rights attaching and
the benefits accruing to each unit of ownership in the
Dutch Company evidenced by Fl.12 nominal of Ordinary
capital should as nearly as possible be the same as if each
such unit formed part of the Ordinary capital of one and
the same Company and that on the occasion of any future
issue of Ordinary capital by either the Dutch Company or
the English Company regard should be had to the
circumstances thereinbefore recited It Was Witnessed and
the parties thereby undertook certain obligations as therein
specifically set forth.
	 
	B.	 	Owing to the occupation of the Netherlands by the
Germans doubts have arisen as to whether the 1937
Agreement is still effective under the laws of England and
as the pre-war relations of the parties are being restored
and the parties are desirous of removing such doubts and
re-affirming the purposes set out in the 1937 Agreement it
has been agreed that as from the 1st day of January 1945
a new Agreement in the form of this Agreement which is
identical in its operative provisions with the 1937
Agreement shall be entered into.

	C.	 	The respective capitals of the Dutch and English Companies
are as follows:–

THE DUTCH COMPANY:

	 	 	 	 	 	 	 	 	 
	 	 	Authorised	 	 	Issued	 
	 	 	Fl.	 	 	Fl.	 
	 
	 
	 	 	 	 	 	 	 	 
	7 per cent. Cumulative
Preference Shares
	 	 	50,000,000	 	 	 	29,000,000	 
	6 per cent. Cumulative
Preference Shares
	 	 	125,000,000	 	 	 	109,136,000	 
	5 per cent. Cumulative
Preference Shares
	 	 	25,000,000	 	 	 	100,000	 
	Ordinary Shares
	 	 	300,000,000	 	 	 	171,750,000	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	500,000,000	 	 	 	309,986,000	 
	 
	 	 	 	 	 	 	 	 
	 

THE ENGLISH COMPANY:

	 	 	 	 	 	 	 	 	 
	 	 	Authorised	 	 	Issued	 
	 
	 
	 	 	 	 	 	 	 	 
	7 per cent. Cumulative
Preference Stock
	 		£35,984,690	 	 	£	35,984,690	 
	5 per cent. Cumulative
Preference Stock
	 	 	4,015,310	 	 	 	2,360,000	 
	8 per cent. Cumulative
A Preference Stock
	 	 	40,000,000	 	 	 	15,655,173	 
	20 per cent. Cumulative
Preferred Ordinary Stock
	 	 	2,287,312	 	 	 	2,287,312	 
	Ordinary Stock
	 	 	59,031,438	 	 	 	13,610,350	 
	Deferred Stock
	 	 	100,000	 	 	 	100,000	 
	 
	 
	 	 	 	 	 	 	 	 
	 
	 	£	141,418,750	 	 	£	69,997,525	 
	 
	 	 	 	 	 	 	 	 
	 

6     Equalisation Agreement 2009

 

 

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:–

	1.	 	In this Agreement unless the context shall otherwise
require the following expressions shall have the following
meanings:–
	 
	 	 	“THE PREFERENCE SHARES OF THE DUTCH COMPANY”
shall mean the issued shares of the Dutch Company
outstanding at any time and ranking in priority to the
Ordinary Shares of the Dutch Company.
	 
	 	 	“THE PREFERENCE SHARES OF THE ENGLISH COMPANY”
shall mean the issued shares of the English Company
outstanding at any time and ranking in priority both to
the Ordinary Shares and to the Deferred Shares of the
English Company.
	 
	 	 	“SHARES” shall include Stock.
	 
	 	 	“SHAREHOLDERS” shall include Stockholders.

	 
	 	 	“FINANCIAL PERIOD” shall mean a financial year of
either of the parties hereto or any other period for
which the accounts of either party hereto may by mutual
agreement be made up for the purpose of ascertaining
and paying dividends.
	 
	 	 	“DIVIDENDS” shall mean in the case of each Company the
full dividends receivable by a Shareholder together with any
tax payable by the Company in respect of such dividends
but before deducting any tax deductible by the Company
from such dividends.
	 
	 	 	“OPEN RESERVES” shall mean in the case of each
Company all reserves other than those properly made
and still required to meet any specified loss liability
or contingency.
	 
	 	 	“FREE RESERVES” shall mean in the case of each Company
the amount of any open reserves increased or reduced
by the balance of profit and loss account existing at the
beginning of any financial period.

	 	 	“CURRENT PROFITS” shall mean in the case of each
Company the profits available for distribution at the
expiration of each financial period before making any
provision for open reserves but excluding any open reserves
or balance of profit and loss account (whether credit or
debit but in the case of a debit subject to the proviso next
hereinafter contained) existing at the beginning of the
financial period.
	 
	 	 	Provided that in the event of there being a deficiency on
the Profit and Loss Account at the commencement of the
period which is in excess of the open reserves at that date
then for the purposes of this definition the profits available
for distribution shall be reduced by and to the extent of
such excess.
	 
	 	 	“SURPLUS ASSETS” shall mean in the case of each
Company any assets remaining after repayment of all
amounts due in liquidation to the holders of the Preference
Shares of the Dutch Company or of the English Company
as the case may be.
	 
	2.	 	So long as this Agreement remains in force the Dutch and
English Companies shall adopt the same financial periods
and for the purposes of this Agreement the Dutch and
English Companies shall adopt the same principles of
accountancy and the same methods of determining current
profits and free reserves so as to include the Companies’
proportion of current profits and free reserves attributable
respectively to their interests direct or indirect in subsidiary
allied and associated companies less the Companies’
proportion of losses so attributable and applying in the
case of subsidiary allied and associated companies the
same meanings to the expressions “current profits” and
“free reserves” as are applied in Clause 1 hereof in the
case of the Dutch and English Companies.
	 
	3.	 	If the current profits of one Company shall be insufficient
to provide in full the dividends (and arrears if any) on its
Preference Shares in respect of any financial period or if
there be no current profits the other Company shall to the
extent of its own current profits for the same financial
period after providing for the dividends (and arrears if any)
on its own Preference Shares be under obligation to make
good any loss incurred by the former Company during that
period together with any amount by which the deficiency
(if any) on profit and loss account at the commencement
of the period exceeds the open reserves at that date and
to make up the current profits of that Company to the
amount of the dividends (and arrears if any) on that
Company’s Preference Shares to the close of such financial
period. If after such contribution has been received by the
former Company the current profits (including the amount
so received) of the former Company are still insufficient for
the purpose the deficiency shall in so far as the free
reserves of that Company have been utilised but are not
sufficient for the purpose be met by a further contribution
from the other Company to the extent of its free reserves.
Any contribution so made shall in so far as not utilised for
making good any such loss and/or deficiency on Profit and
Loss Account as aforesaid be distributed by the Company
to whom such payment is made but if not so distributed
shall be repaid forthwith to the Company by whom the
contribution was made.

Equalisation
Agreement 2009     7

 

 

	 
	4.	 	All dividends on the Ordinary Share Capital of the Dutch
and English Companies shall in the case of interim
dividends be declared and in the case of final dividends be
resolved to be recommended by the Boards of the Dutch
and English Companies on the same day.
	 
	 	 	The Boards of the two Companies shall decide from time
to time what portion of the aggregate of the current profits
of the two Companies for each financial period and free
reserves should be distributed by way of dividend on the
Ordinary Share Capitals of the Dutch and English
Companies for that period. The amount decided shall be
utilised in providing for dividends on the Ordinary Share
Capitals of the Dutch and English Companies respectively
upon the footing that the sum paid on every Fl. 12 nominal
of capital in the Dutch Company at the rate of exchange
on the day of declaration or resolution to recommend by
the Boards of an interim or final dividend as the case may
be shall be equal in value to the sum paid on every £1
nominal of capital in the English Company. If the current
profits and free reserves of one of the Companies shall be
insufficient to pay the ordinary dividend so decided the
other Company shall be under obligation to pay to it
forthwith any amount required to enable it to pay such
dividend and if necessary in the case of the English
Company the dividends on the Preferential Certificates
outstanding under the co-partnership trust and
on its Deferred Shares.

	 	 	Neither Company shall pay any dividend on its Ordinary Share Capital in respect of any financial period larger than
the one so decided for that period and if notwithstanding
this restriction either of the Companies shall pay a larger
dividend on its Ordinary Shares such Company shall
forthwith pay to the other Company a sum equal to
the extra amount which the other Company would have
to distribute to raise the dividend on its Ordinary Shares
for that period accordingly and if necessary in the case
of the English Company to pay the dividends on the said
Preferential Certificates and on its Deferred Shares. In such
circumstances such other Company may at such times as
it may in its discretion decide utilise the amount so received
by it in paying an extra dividend or such dividends as the
case may be and so long as and to the extent that such
extra dividend or such dividends are not so paid the said
amount together with interest thereon at the rate of
4 per cent. per annum shall be excluded in computing
the current profits and free reserves of that Company for
a subsequent financial period.
	 
	5.	 	Any sums due from one Company to the other in
accordance with the provisions of Clauses 3 or 4 hereof
shall be deemed to have become due on the last day of
the financial period in respect of which the obligation has
arisen and shall bear interest from that date at the rate
of 4 per cent. per annum until payment.
	 
	6.	 	Neither Company shall (except as provided in Clause 7
hereof) distribute a dividend in specie.
	 
	7.	 	If one of the parties hereto shall go into liquidation
whether compulsory or voluntary
	 
	 	 	(a) Accounts shall from time to time as and when necessary
be prepared and certified by the Auditors for the time
being (or the last Auditors) of both Companies showing at
the date of any account what amounts are in the case of
the liquidating Company available for distribution amongst
the shareholders of the liquidating Company and in the
case of the non-liquidating Company what amounts would
be available for distribution amongst the shareholders
of the non-liquidating Company on the footing that such
Company was then in liquidation and its assets realised
and the liabilities discharged.
	 
	 	 	(b) The amounts certified from time to time to be available
in cash for distribution amongst the shareholders of the
liquidating Company shall be applied to the payment to
the holders of the Preference Shares of the liquidating
Company of the amounts due to such shareholders in their
due priorities. In the event of the amounts finally available
for distribution amongst the shareholders of the liquidating
Company being insufficient to pay in full all sums due to
the holders of the Preference Shares of the liquidating
Company but the account of the non-liquidating Company
showing a surplus after provision has been made for the
full discharge of all amounts payable to the holders of the
Preference Shares of the non-liquidating Company in a
liquidation such surplus shall be applied to making good
the deficiency aforesaid. Conversely if the accounts of
the non-liquidating Company shall show that the non-liquidating
Company is not in a position to provide in full
all amounts due in a liquidation of such Company to its
Preference Shareholders any deficiency shall be made
good by the liquidating Company out of any surplus after
payment in full of all amounts due in the liquidation to
the Preference Shareholders of the liquidating Company.

8     Equalisation Agreement 2009

 

 

	 
	 	 	(c) The surplus assets of both Companies after payment in
full to or provision made for the holders of the Preference
Shares of both Companies shall be available for making
distributions to the holders of the Ordinary Shares of the
liquidating Company on the basis that the surplus assets of
both Companies are deemed to be pooled and distributed
or allocated amongst the holders of the Ordinary Shares of
both Companies upon the footing that the sum paid or
allocated on every FI. 12 nominal of capital in the Dutch
Company at the rate of exchange on the day of
certification of the accounts so to be prepared as aforesaid
on which the distribution and allocation are made shall be
equal in value to the sum allocated or paid on every £1
nominal of capital in the English Company on the basis
that each Company has borne or has to bear any tax
payable by the Company in respect of such distributions
but before deducting any tax deductible by the Company
from the sums so distributed.
	 
	 	 	Any amounts allocated to the holders of the Ordinary
Shares in the non-liquidating Company shall be paid to
or retained by the non-liquidating Company.
	 
	 	 	(d) On the occasion of each account (except the final
account) no greater amount shall be distributed than is
available in cash for distribution in the liquidating Company
and if there shall be shown to be due by the liquidating
Company to the non-liquidating Company any sum
necessary to enable the non-liquidating Company to make
provision for a distribution on the above basis such sum
shall be paid forthwith to the non-liquidating Company.
by the liquidating Company. No contribution shall be
made by the non-liquidating Company to the liquidating
Company until the final account has been taken.
	 
	 	 	(e) Any distribution which may be made in specie shall be
made in a manner certified by the Auditors for the time
being (or the last Auditors) of both Companies as
complying with the above basis.

	 	 	(f) In calculating any amounts available for distribution
amongst the holders of the Ordinary Shares of both
Companies there shall be deducted an amount equal to
any contributions made by one Company to the other
pursuant to the provisions of Clause 4 hereof and not
distributed by way of dividend on the Ordinary Shares of
such other Company together with interest thereon as
provided in Clause 4 hereof which amount and interest
shall be exclusively applied for the benefit of the holders
of the Ordinary Shares of such other Company.
	 
	 	 	(g) In making any distribution or allocation under sub-Clause (c) hereof there shall be taken into account the
amounts due in a liquidation of the English Company to
the holders of its Deferred Shares.
	 
	8.	 	If both the Dutch and English Companies shall be in
liquidation at the same time the provisions in Clause 7
hereof shall be applied mutatis mutandis.
	 
	9.	 	(a) Neither Company shall at any time issue any capital
without the consent in writing of the other nor reduce
its capital without the like consent
	 
	 	 	(b) With regard to any future issue of Ordinary Capital the
following provisions shall apply:–

	 	 	 	(i) Issue of bonus shares, that is to say the issue free
of payment to shareholders of shares credited as fully
paid up, shall in principle only be made by the Dutch
and English Companies simultaneously and then only
upon the terms that the shares issued by way of bonus
shall be Ordinary Shares.
	 
	 	 	 	The Boards of the two Companies shall decide from
time to time what amounts should be distributed by
way of bonus shares. The amount decided shall be
utilised in issuing bonus shares to the Ordinary
Shareholders of the Dutch and English Companies
respectively upon the footing that the nominal amount
of bonus capital to be received by the holder of Fl. 12
nominal of capital in the Dutch Company shall bear the
same proportion to such Fl. 12 nominal of capital held
by him as the nominal amount of bonus capital to be
received by the holder of £1 nominal of capital in the
English Company bears to such £1 nominal of capital
held by him. If the undistributed profits (including free
reserves but excluding any contributions made by one
Company to the other in pursuance of Clause 4 hereof
and not utilised for the purpose therein mentioned) of
one of the Companies shall be insufficient to provide
for the issue by that Company of bonus shares as so
decided the other Company shall be under obligation
to pay to it forthwith out of its undistributed profits
(including as aforesaid) any amount required to enable
it to make an issue as so decided.

Equalisation
Agreement 2009     9

 

 

	 	 	 	Any sums due from one Company to the other in
accordance with the provisions of this Clause shall
be deemed to have become due on the day of
authorisation of the issue of the bonus shares and shall
bear interest from that date at the rate of 4 per cent.
per annum until payment.
	 
	 	 	 	(ii) “Rights” issues, that is to say the issue to
shareholders of shares on terms that each holder of
a specified number of shares is entitled to apply for
and have allotted a specified number of new shares
at a price less than the best obtainable on a public
issue, shall in principle be made by the Dutch and
English Companies simultaneously and then only
upon the terms that the shares issued as “rights”
shall be Ordinary Shares and upon the footing that the
nominal amount of capital offered for subscription to
every holder of Fl. 12 nominal of capital in the Dutch
Company shall bear the same proportion to such FI. 12
nominal of capital held by him as the nominal amount
of capital offered for subscription to every holder of £1
nominal of capital in the English Company shall bear
to such £1 nominal of capital held by him and so that
the amounts to be paid by a subscriber of each FI. 12
nominal of capital in the Dutch Company shall at the
rate of exchange on the day of decision by the Boards
to make the issues be equal in value to the amount to
be paid by the subscriber of each £1 nominal of capital
in the English Company.
	 
	 	 	 	(iii) Neither Company shall in principle issue Ordinary
Shares at any time at a price which when converted
into sterling or florins as the case may be at the rate of
exchange on the day of such issue would for a share
of a nominal amount of FI. 12 or £1 as the case may
be represent a subscription price lower than £1 or FI.
12 as the case may be.
	 
	 	 	 	(iv) If at any time Boards of the two Companies decide
that it is in the interests of the two Companies that
the principles set out in Sections (i), (ii) and (iii) of this
sub-Clause should not be applied then and in every
such case such measures shall be taken as will be
equitable to the Shareholders of both Companies
having regard to the recitals and the provisions in
these presents.

	10.	 	This Agreement shall be construed and have effect in all
respects as a contract made in England in accordance with
the laws of England and any dispute shall be settled by
arbitration in England under the Arbitration Acts 1889 to
1934 or any statutory modification or re-enactment thereof.

IN WITNESS whereof this Agreement has been duly executed
by both parties.

The original agreement dated 28th June 1946 was signed on
behalf of Lever Brothers and Unilever Limited by Mr. R. E. Huffam
and Mr. A. G. Short, Directors and on behalf of Lever Brothers &
Unilever N.V. By A. Hartog and R. G. Jurgens, Directors.

10     Equalisation Agreement 2009

 

 

This Agreement is made the Twentieth day of July 1951
BETWEEN LEVER BROTHERS & UNILEVER N.V. having its
registered office at Rotterdam in the Netherlands (hereinafter
called “the Dutch Company”) of the one part and LEVER
BROTHERS & UNILEVER LIMITED having its registered office
at Port Sunlight England (hereinafter called “the English
Company”) of the other part SUPPLEMENTAL to an Agreement
(hereinafter called “the Principal Agreement”) dated the 28th
day of June 1946 and made between the Dutch Company
of the one part and the English Company of the other part

WHEREAS by Clause 4 of the Principal Agreement ii is provided
(inter alia) that if the current profits and free reserves (as defined
in the Principal Agreement) of one of the Companies shall be
insufficient to pay the Ordinary dividend decided upon pursuant
to such Clause the other Company shall be under obligation
to pay to it forthwith any amount required to enable it to pay
such dividend

AND WHEREAS the Dutch Company and the English
Company have mutually agreed that the provisions of
Clause 4 of the Principal Agreement shall be modified
in manner hereinafter provided

AND WHEREAS the aforesaid modification has been duly
sanctioned and the Directors of the Dutch Company and of
the English Company have respectively been authorised to enter
into and carry into effect an Agreement in the terms of this
Agreement by a resolution of a General Meeting of the Dutch
Company duly convened and held on the 12th day of July, 1951
such resolution having subsequently been approved by a
separate Meeting of the holders of Ordinary Shares in the Dutch
Company duly convened and held on the 12th day of July, 1951
pursuant to Article 33 of the Articles of Association of the Dutch
Company and by a resolution passed at a separate General
Meeting of the Ordinary Stockholders of the English Company
duly convened and held on the 12th day of July, 1951 in
pursuance of the provisions of Article 3 of the Articles of
Association of the English Company.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:–

	1.	 	The Principal Agreement shall be modified by the deletion
of the last sentence of the second paragraph of Clause 4
thereof and the substitution therefor of the following new
sentences namely “If the current profits of one Company
shall be insufficient to enable it to pay the ordinary dividend
so decided the other Company shall to the extent of its own
current profits remaining after providing for the amount
required to enable it to pay the ordinary dividend so decided
on its own Ordinary share capital be under obligation to pay
forthwith to the first mentioned Company an amount
sufficient to make up the first mentioned Company’s
current profits to the sum required to pay such dividend.
If the current profits (including the amount of any
contribution received pursuant to the preceding provisions
of this Clause) and the free reserves of one Company are
insufficient to enable it to pay such dividend the deficiency
shall be met by a contribution from the other Company to
the extent of its free reserves. For the purposes of the
preceding provisions of this Clause the expression ‘ordinary
dividend’ shall in the case of the English Company include
(where necessary and appropriate) the dividends on the
preferential certificates outstanding under the

Co-Partnership Trust and on its Deferred Shares.”.
	 
	2.	 	The Principal Agreement (which in all other respects is
hereby confirmed) shall henceforth be read and construed
accordingly.

IN WITNESS whereof this Agreement has been duly executed
by both parties.

The original agreement dated 20 July 1951 was signed on
behalf of Lever Brothers & Unilever Limited by Mr R. G. Jurgens
and Mr R. H. Heyworth, Directors and on behalf of Lever
Brothers & Unilever N.V. by A. E. J. Simon Thomas and
M. G. de Baat, Directors.

Equalisation
Agreement
2009     11

 

 

THIS AGREEMENT is made the 21st day of December 1981
BETWEEN UNILEVER N.V. having its registered office at
Rotterdam in the Netherlands (hereinafter called “the Dutch
Company”) of the one part and UNILEVER PLC having its
registered office at Port Sunlight England (hereinafter called
“the English Company”) of the other part SUPPLEMENTAL to:–

	(a)	 	an Agreement (hereinafter called “the Principal
Agreement”) dated the 28th day of June 1946 and made
between the Dutch Company (under its former name Lever
Brothers & Unilever N.V.) of the one part and the English
Company (under its former name Lever Brothers & Unilever
Limited) of the other part; and
	 
	(b)	 	an Agreement (hereinafter called “the Supplemental
Agreement”) dated the 20th day of July 1951 and made
between the Dutch Company (under its former name Lever
Brothers & Unilever N.V.) of the one part and the English
Company (under its former name Lever Brothers & Unilever
Limited) of the other part expressed to be supplemental to
the Principal Agreement.

WHEREAS:

	A.	 	The Dutch Company and the English Company have
mutually agreed that the Principal Agreement as modified
by the Supplemental Agreement shall be further modified
in manner hereinafter provided.
	 
	B.	 	The terms set out in this Agreement have been duly
sanctioned and the Directors of the Dutch Company and
the English Company have respectively been authorised
to enter into and carry into effect this Agreement (i) by
Resolution of a general meeting of the Dutch Company
which Resolution has subsequently been approved by a
separate meeting of the holders of Ordinary Shares in the
Dutch Company both meetings having been duly convened
and held on the 18th day of December 1981 pursuant to
Article 47 of the Articles of Association of the Dutch
Company and (ii) by an Ordinary Resolution of the English
Company in general meeting and an Ordinary Resolution
passed at a separate general meeting of the holders of
Ordinary Shares of the English Company both meetings
having been duly convened and held on the 18th day of
December 1981 pursuant to Article 3 of the Articles of
Association of the English Company.

NOW THIS AGREEMENT WITNESSETH AS FOLLOWS:–

	1.	 	Recital C of the Principal Agreement shall be deleted and
the provisions of the Principal Agreement shall be modified
in manner following that is to say:–
	 
	 	 	(A) In Clause 1 the definition of the expression “OPEN
RESERVES” shall be amended by deleting the words “other
than those properly made and still required to meet any
specified loss liability or contingency” and substituting
therefore the words “other than (i) reserves not legally
available for distribution (ii) reserves properly made and still
required to meet any specified loss, liability or contingency
and (iii) any deferred dividend reserve or equalisation

	 	 	reserve” and the definition of the expression “CURRENT
PROFITS” shall be amended by deleting the words
“available for distribution” and substituting therefor
the words “which may lawfully be distributed”.
	 
	 	 	(B) The following further definition shall be added at the
end of Clause 1:–
	 
	 	 	““RELEVANT RATE OF EXCHANGE” shall mean the rate of
exchange between the Dutch Florin and the Pound sterling
on the last day of the quarterly period ended last before
the declaration of a dividend (in the case of an interim
dividend) or of the financial period in respect of which a
dividend is being resolved to be recommended (in the case
of a final dividend) provided that if the parties hereto shall
by mutual agreement adopt another rate of exchange for
their reporting to shareholders of the combined profit of
the two Companies attributable to their Ordinary Share
Capitals in respect of the relevant quarterly period or
financial period (as the case may be) then such other rate
shall be the relevant rate of exchange.”
	 
	 	 	(C) Clause 4 of the Principal Agreement (as modified by the
Supplemental Agreement) shall be deleted and there shall
be substituted therefor the following new Clause:–

	 	 	 	“4. (a) All dividends on the Ordinary Share Capitals of
the Dutch and English Companies shall in the case of
interim dividends be declared and in the case of final
dividends be resolved to be recommended by the
Boards of the Dutch and English Companies on the
same day.
	 
	 	 	 	(b) The Boards of the two Companies shall decide
from time to time what portion of the aggregate of
the current profits of the two Companies for each
financial period and free reserves should be distributed
by way of dividend on the Ordinary Share Capitals of
the Dutch and English Companies for that period for
which purpose the Boards may take into account the
existence of the following provisions of this Clause.
	 
	 	 	 	(c) The amount so decided shall (subject as provided
in this Clause) be utilised in providing for dividends
on the Ordinary Share Capitals of the Dutch and
English Companies respectively upon the footing that
the dividend paid on every Fl.12 nominal of capital in
the Dutch Company at the relevant rate of exchange
shall be equal in value to the dividend paid on every
£1 nominal of capital in the English Company.
	 
	 	 	 	(d) Notwithstanding the foregoing if the application
of sub-clause (c) of this Clause to the decision
mentioned in sub-clause (b) of this Clause:–

	 	 	 	(i) would result in the declaration or
recommendation of a dividend by one of the
Companies which it would be prevented by
law from declaring; or

12     Equalisation Agreement 2009

 

 

	 	 	 	(ii) would because of movements in the relative
parities between the Dutch Florin and the
Pound sterling result in a level of dividend of
one of the Companies which (in the opinion
of the Boards of the two Companies) its Board
(on the assumption for this purpose that the
Company concerned was the parent company
of the two Companies) would regard as
unreasonable to declare or recommend having
regard in particular to (1) the level of the
corresponding dividend in respect of the last
preceding financial period (2) the development
of the aggregate of the current profits of the
Dutch and English Companies expressed in the
currency of the Company concerned and (3)
any special circumstances in the country of
incorporation of that Company relevant to the
decision as to the level of dividend which
would be reasonable;

	 	 	 	the Board of that Company may declare or
recommend a dividend differing from that resulting
from sub-clauses (b) and (c) of this Clause provided
that in each case;

	 	 	 	(x) such dividend is of such a level as is
reasonable in the opinion of the Boards of
both Companies having regard in particular
to the factors described in this sub-clause;
	 
	 	 	 	(y) the difference is dealt with in accordance
with the following provisions of this Clause;
and
	 
	 	 	 	(z) the Boards of the two Companies make
available to their shareholders together with
and in the same manner as the announcement
of the dividend a statement giving the
reasons why the provisions of this sub-clause
have been applied.

	 	 	 	(e) For the purpose of the following provisions of
this Clause:–

	 	 	 	(i) “the Company declaring the lower
dividend” shall mean the Company declaring
a dividend which upon the footing referred
to in sub-clause (c) of this Clause shall be
lower in value than the dividend declared by
the other Company; and
	 
	 	 	 	(ii) “the difference” shall mean the difference
calculated at the relevant rate of exchange
between the, total amount of dividend
declared on its Ordinary Share Capital by the
Company declaring the lower dividend and
the total amount of dividend it would have
to declare on its Ordinary Share Capital in
order to provide for a dividend which upon
the footing referred to in sub-clause (c) of
this Clause would be equal in value to that
declared by the other Company.

	 	 	 	(f) Whenever it shall be decided in accordance with
the provisions of paragraph (i) of sub-clause (d) of
this Clause that a dividend shall be declared or
recommended differing from that which would result
from sub-clauses (b) and (c) of this Clause an amount
equal to the difference shall be credited to a “deferred
dividend reserve” to be established or adjusted as the
case may be in the books of the Company declaring
the lower dividend and that Company shall apply the
whole of such deferred dividend reserve towards
declaration and payment of a dividend or dividends on
its Ordinary Share Capital as soon as practicable after
this becomes permitted by law. If at the date of
declaration of any such last-mentioned dividend that
Company holds any of its own Ordinary Shares the
amount of the dividend which would be payable
in respect of them if they were not so held shall be
transferred from the deferred dividend reserve to
that Company’s free reserves.
	 
	 	 	 	(g) Whenever it shall be decided in accordance
with the provisions of paragraph (ii) of sub-clause
(d) of this Clause that a dividend shall be declared
or recommended differing from that which would
result from sub-clauses (b) and (c) of this Clause an
amount equal to the difference shall be credited to an
“equalisation reserve” to be established or adjusted
as the case may be in the books of the Company
declaring the lower dividend provided that if such
an equalisation reserve is at that time in existence in
the books of the other Company there shall first be
deducted from the amount of the difference the
amount of that equalisation reserve or such part
thereof as is equal to the amount of the difference
and provided further that in such case the amount so
deducted shall be debited to that existing equalisation
reserve. Any amounts so to be deducted and debited
shall bt: calculated at the relevant rate of exchange.
	 
	 	 	 	(h) If at any time when a deferred dividend reserve or
an equalisation reserve is in existence in the books of
either of the two Companies:–

	 	 	 	(i) the amount paid up on its Ordinary Share
Capital shall be increased (otherwise than as a
result of an allotment or issue of shares to the
holders of its existing Ordinary Share Capital
free of payment or an allotment or issue of
shares to the holders of its existing Ordinary
Share Capital pursuant to an offer of such
shares to such holders whether in any such
case the right to such shares or the right to
accept such an offer is or is not renounceable)
and the amount paid up on its Ordinary Share
Capital comprised in such increase ranks or
will rank for any dividend to be paid out of
the existing deferred dividend reserve or
equalisation reserve under the provisions of
this Clause the amount of such reserve shall
thereupon be increased proportionately to the
increase in the paid up amount of its Ordinary
Share Capital by the transfer to such reserve
of an appropriate part of that Company’s free
reserves; or

Equalisation
Agreement 2009     13

 

 

	 	 	 	(ii) the amount paid up on its Ordinary Share
Capital shall be reduced (otherwise than by
a reduction of the amount paid up on each
Ordinary Share) the amount of such reserve
shall thereupon be reduced proportionately
to the reduction in the paid up amount of
its Ordinary Share Capital by the transfer of
an appropriate part of such reserve to that
Company’s free reserves. This paragraph shall
apply to a reduction of the amount paid up
on the Ordinary Shares of either of the two
Companies arising on a purchase by that
Company of its own shares as well as on a
reduction of that Company’s capital.

	 	 	 	(j) Notwithstanding the foregoing the power under
paragraph (ii) of sub-clause (d) of this Clause to declare
or recommend a dividend differing from that which
would result from sub-clauses (b) and (c) of this Clause
shall not be used if and to the extent that as a result
thereof the amount to be credited to any equalisation
reserve by one of the Companies when added to the
amount (if any) already standing to the credit of the
equalisation reserve in the books of that Company
would exceed an amount equal to the annual average
of the aggregate dividends declared or recommended
on the Ordinary Share Capital of that Company in
respect of the three financial periods immediately
preceding the financial period in respect of which the
relevant dividend is being declared or recommended. If
any Ordinary Share Capital of that Company has at
any time been issued (otherwise than as bonus shares
as defined in Clause 9(b) hereof) on terms that it ranks
or will rank for dividend in respect of a part only of the
said three financial periods or for only some and not
the whole of the dividends declared or recommended
in respect of those periods then for the purposes of
the foregoing the said average shall be calculated as
if all the Ordinary Share Capital so issued had been
issued at the beginning of the first of the said three
financial periods and in respect of those periods the
same rate or rates of dividend had been declared
or recommended on the Ordinary Share Capital so
issued as were declared or recommended on that
Company’s issued Ordinary Share Capital provided that
if the increase in the issued Ordinary Share Capital
shall be effected by way of a Rights issue as defined in
Clause 9(b) hereof the amount of such additional
Ordinary Share Capital to be treated as if issued at the
beginning of the first of the said financial periods shall
be reduced by an amount (to be announced at the
time when the issue is made) which the Boards of the
two Companies consider to be reasonable having
regard to any discount on current market price at
which the Rights issue shall be made.

	 	 	 	(k) If at any time one of the Companies shall have
standing to the credit of its equalisation reserve
a sum equal to or exceeding 70 per cent. of the
maximum amount permitted in accordance with
sub-clause (j) of this Clause that Company shall be
entitled to apply the whole or part of its equalisation
reserve towards the declaration and payment of a
dividend or dividends on its Ordinary Share Capital. If
at the date of declaration of any such last-mentioned
dividend that Company holds any of its own Ordinary
Shares the amount of the dividend which would be
payable in respect of them if they were not so held
shall be transferred from the equalisation reserve to
that Company’s free reserves.
	 
	 	 	 	(l) If the current profits of one Company shall be
insufficient to enable it to pay any ordinary dividend
declared or recommended under sub-clause (c) or
sub-clause (d) of this Clause and if the Boards of the
two Companies consider it appropriate that
Company shall require the other Company to the
extent of its own current profits remaining after
providing for the amount required to enable it to pay
the ordinary dividend so declared or recommended
on its own Ordinary Share Capital to pay forthwith
to the first-mentioned Company an amount sufficient
to make up the first-mentioned Company’s current
profits to the sum required to pay such dividend.
If the current profits (including the amount of any
contribution received pursuant to the provisions
of this sub-clause) and the free reserves of one
Company are insufficient to enable it to pay such
dividend or to credit to deferred dividend reserve
or to equalisation reserve the amount required
under sub-clauses (f) (g) and (h) of this; Clause the
deficiency shall be met by a contribution from
the other Company to the extent of its free reserves.
For the purposes of this Clause the expression
“ordinary dividend” shall in the case of the English
Company include (where necessary and appropriate)
the dividends on the preferential certificates
outstanding under the Co-Partnership Trust and
on its Deferred Shares.
	 
	 	 	 	(m) Neither Company shall pay any dividend on
its Ordinary Share Capital larger than the one
declared of recommended to be declared by the
Board of the Company concerned in accordance
with the preceding provisions of this Clause and
if notwithstanding this restriction either of the
Companies shall pay a larger dividend on its Ordinary
Share Capital such Company shall forthwith pay to
the other Company a sum equal to the extra amount
which the other Company would have to distribute
to raise the dividend on its Ordinary Shares for that
period accordingly and if necessary in the case of the
English Company to pay the dividends on the said
preferential certificates and on its Deferred Shares.
In such circumstances such other Company may at
such times as it may in its discretion decide utilise the
amount so received by it in paying an extra dividend

14     Equalisation Agreement 2009

 

 

	 	 	 	or such dividends as the case may be and so long
as and to the extent that such extra dividend or such
dividends are not so paid the said amount together
with interest thereon at the rate of 4 per cent. per
annum shall be excluded in computing the current
profits and free reserves of that Company for each
subsequent financial period.”

	 	 	(D) Clause 7 ( c) of the Principal Agreement shall be
deleted and there shall be substituted therefor the
following new sub-clause:– 

	 	 	 	“(c) The surplus assets of both Companies after
payment in full to or provision made for the holders
of the Preference Shares of both Companies shall be
available for making distributions to the holders of
the Ordinary Shares of the liquidating Company on
the basis that the surplus assets of both Companies
are deemed to be pooled and distributed or allocated
amongst the holders of the Ordinary Shares of both
Companies on the footing that the sum paid or
allocated on every Fl.12 nominal of capital in the
Dutch Company at the rate of exchange on the day
of certification of the Accounts so to be prepared as
aforesaid on which the distribution and allocation are
made shall be equal in value to the sum allocated or
paid on every £1 nominal of capital in the English
Company on the basis that each Company has borne
or has to bear any tax payable by the Company in
respect of such distributions but before deducting
any tax deductible by the Company from the sum
so distributed provided always that before making
such distribution and allocation there shall be
allocated to the holders of Ordinary Shares of the
relevant Company or Companies sums equal to
the amounts (if any) standing for the time being
to the credit of any deferred dividend reserve and
of any equalisation reserve. Any amounts allocated
under the provisions of this sub-clause to the
holders of the Ordinary Shares in the non-liquidating
Company shall be paid to or retained by the
non-liquidating Company.”

	 	 	(E) Clause 10 of the Principal Agreement shall be amended
by deleting the words “the Arbitration Acts 1889 to 1934
or any statutory modification or re-enactmemt thereof”
and substituting therefor the words “the Arbitration Acts
1950 to 1979 or any statutory modification or re-enactment
thereof from time to time in force.”

	2.	 	The Principal Agreement (which in all other respects is
hereby confirmed) shall henceforth be read and construed
as amended by Clause 1 hereof. The terms of the
Supplemental Agreement shall henceforth cease to apply.

IN WITNESS whereof this Agreement has been duly executed
by both parties the day and year first before written.

The original agreement dated 21 December 1981 was
signed on behalf of Unilever N.V. by Mr H. F. van den Hoven
and Mr C. Zwagerman, Director and Secretary respectively,
and on behalf of Unilever PLC by Mr D. Orr and
Mr K. Durham, Directors.

Equalisation
Agreement
2009     15

 

 

THIS AGREEMENT is made the 15th day of May 2006 BETWEEN
UNILEVER N.V. having its registered office at Rotterdam in the
Netherlands (hereinafter called “the Dutch Company”) of the
one part and UNILEVER PLC having its registered office at Port
Sunlight, Wirral, Merseyside, United Kingdom CH62 4ZD
(hereinafter called “the English Company”) of the other part
SUPPLEMENTAL to:–

	(a)	 	an Agreement (hereinafter called “the Principal
Agreement”) dated the 28th day of June 1946 and made
between the Dutch Company (under its former name Lever
Brothers & Unilever N.V.) of the one part and the English
Company (under its former name Lever Brothers & Unilever
Limited) of the other part;
	 
	(b)	 	an Agreement (hereinafter called “the First Supplemental
Agreement”) dated the 20th day of July 1951 and made
between the Dutch Company (under its former name Lever
Brothers & Unilever N.V.) of the one part and the English
Company (under its former name Lever Brothers & Unilever
Limited) of the other part and expressed to be
supplemental to the Principal Agreement; and
	 
	(c)	 	an Agreement (hereinafter called “the Second
Supplemental Agreement”) dated the 21st day of
December 1981 and made between the Dutch Company
of the one part and the English Company of the other part
and expressed to be supplemental to the Principal
Agreement and the First Supplemental Agreement.

WHEREAS:

	A.	 	The Dutch Company and the English Company have
mutually agreed that the Principal Agreement, as modified
by the Second Supplemental Agreement, shall be modified
in the manner hereinafter provided.
	 
	B.	 	The terms set out in this Agreement have been duly
sanctioned and the Directors of the Dutch Company and the
English Company have respectively been authorised to enter
into and carry into effect this Agreement (i) by Resolution of
a general meeting of the Dutch Company which Resolution
had been given prior approval by a separate meeting of the
holders of Ordinary Shares in the Dutch Company, pursuant
to Article 44 of the Articles of Association of the Dutch
Company such meetings having been duly convened and
held on the 8th day of May 2006 and (ii) by an Ordinary
Resolution in general meeting of the English Company and
an Ordinary Resolution passed at a separate general meeting
of the holders of Ordinary Shares in the English Company
both meetings having been duly convened and held on the
9th day of May 2006 pursuant to Article 3 of the Articles
of Association of the English Company.

NOW THIS AGREEMENT WITNESSES as follows:– 

	1.	 	The provisions of the Principal Agreement, as modified by the
Second Supplemental Agreement, shall be modified in the
manner following that is to say:– 

	 	 	(A) All references therein to “Fl. 12” shall be deleted and
references to “EUR 0.16” substituted therefor.
	 
	 	 	(B) All references therein to “£1” shall be deleted and
references to “3 1/9 pence” substituted therefor.
	 
	 	 	(C) All references therein to “Dutch Florin” shall be deleted
and references to “Euro” substituted therefor.
	 
	 	 	(D) All references therein to “florins” shall be deleted and
references to “euros” substituted therefor.
	 
	 	 	(E) Clause 10 of the Principal Agreement shall be amended by
deleting the words “the Arbitration Acts 1950 to 1979 or any
statutory modification or re-enactment thereof from time to
time in force” and substituting therefor the words “the
Arbitration Acts 1950 to 1996 or any statutory modification
or re-enactment thereof from time to time in force”.
	 
	 	 	(F) The following further Clause shall be added as a new
Clause 11:– 

	 	 	 	“11. The parties to this Agreement do not intend that
any term of this Agreement should be enforceable, by
virtue of the Contracts (Rights of Third Parties) Act 1999,
by any person who is not a party to this Agreement.”

	2.	 	This Agreement shall be governed by, and construed in
accordance with, English law.
	 
	3.	 	The Principal Agreement, as modified by the Second
Supplemental Agreement, (which in all other respects is hereby
confirmed) shall henceforth be read and construed as
amended by Clause 1 hereof.

IN WITNESS whereof this Agreement has been duly executed by
both parties the day and year first before written.

The original agreement dated 15 May 2006 was signed on
behalf of Unilever PLC by R. Kugler and A. M. Dillon, Director
and Deputy Secretary respectively, and on behalf of Unilever N.V.
by K. van der Graaf and J. van der Bijl, Director and Joint
Secretary respectively.

16     Equalisation Agreement 2009

 

 

THIS AGREEMENT is made the 20th day of May 2009 BETWEEN
UNILEVER N.V. having its registered office at Rotterdam in the
Netherlands (hereinafter called “the Dutch Company”) of the
one part and UNILEVER PLC having its registered office at Port
Sunlight, Wirral, Merseyside, United Kingdom CH62 4ZD
(hereinafter called “the English Company”) of the other part
SUPPLEMENTAL to:-

	(a)	 	an Agreement (hereinafter called “the Principal
Agreement”) dated the 28th day of June 1946 and made
between the Dutch Company (under its former name Lever
Brothers & Unilever N.V.) of the one part and the English
Company (under its former name Lever Brothers & Unilever
Limited) of the other party;
	 
	(b)	 	an Agreement (hereinafter called “the First Supplemental
Agreement”) dated the 20th day of July 1951 and made
between the Dutch Company (under its former name Lever
Brothers & Unilever N.V.) of the one part and the English
Company (under its former name Lever Brothers & Unilever
Limited) of the other part and expressed to be
supplemental to the Principal Agreement;
	 
	(c)	 	an Agreement (hereinafter called “the Second
Supplemental Agreement”) dated the 21st day of
December 1981 and made between the Dutch Company
of the one part and the English Company of the other part
and expressed to be supplemental to the Principal
Agreement and the First Supplemental Agreement; and
	 
	(d)	 	an Agreement (hereinafter called “the Third Supplemental
Agreement”) dated the 15th day of May 2006 and made
between the Dutch Company of one part and the English
Company of the other part and expressed to be
supplemental to the Principal Agreement and the First
Supplemental Agreement and the Second Supplemental
Agreement.

WHEREAS:

	A.	 	The Dutch Company and the English Company have
mutually agreed that the Principal Agreement, as modified
by the First Supplemental Agreement, the Second
Supplemental Agreement and the Third Supplemental
Agreement, shall be modified in the manner hereinafter
provided.
	 
	B.	 	The terms set out in this Agreement have been duly
sanctioned and the Directors of the Dutch Company and the
English Company have respectively been authorised to enter
into and carry into effect this Agreement (i) by Resolution of
a general meeting of the Dutch Company which Resolution
had been given prior approval by a separate meeting of the
holders of Ordinary Shares in the Dutch Company, pursuant
to Article 44 of the Articles of Association of the Dutch
Company such meetings having been duly convened and
held on the 14th day of May 2009 and (ii) by an Ordinary
Resolution in general meeting of the English Company and
an Ordinary Resolution passed at a separate general
meeting of the holders of Ordinary Shares in the English
Company both meetings having been duly convened and
held on the 13th day of May 2009 pursuant to Article 3 of
the Articles of Association of the English Company.

NOW THIS AGREEMENT WITNESSES as follows:– 

	1.	 	The provisions of the Principal Agreement, as modified by the
First Supplemental Agreement, the Second Supplemental
Agreement and the Third Supplemental Agreement shall be
modified in the manner following that is to say:-

	 	(A)	 	In Clause 1 the definition of “RELEVANT RATE OF
EXCHANGE” shall be deleted and the following definition
shall be substituted therefor:
	 
	 	 	 	““RELEVANT RATE OF EXCHANGE” shall mean the rate
of exchange as determined by the Dutch Company and
the English Company in such manner as they shall deem
appropriate between the currency or currencies in which
dividends are to be paid on the Ordinary Share Capital of
the Dutch Company and the currency or currencies in
which dividends are to be paid on the Ordinary Share
Capital of the English Company on the day which is one
day prior to the date on which such dividends are to be
declared or resolved to be recommended or if it is not in
the opinion of the Dutch Company and the English
Company practicable to determine a representative rate
of exchange on that day on the next earlier day on which
it is in their opinion practicable to determine a
representative rate of exchange.”; and
	 
	 	(B)	 	In Clause 4(d)(ii) the words “Euro and the Pound Sterling”
shall be deleted and the words “currencies in which
dividends are to be paid” shall be substituted therefor.

	2.	 	This Agreement shall be governed by, and construed in
accordance with, English law.
	 
	3	 	The Principal Agreement, as modified by the First
Supplemental Agreement, the Second Supplemental
Agreement and the Third Supplemental Agreement, (which
in all other respects is hereby confirmed), shall henceforth
be read and construed as amended by Clause 1 hereof.

IN WITNESS whereof this Agreement has been duly executed by
both parties the day and year first before written.

The original agreement dated 20th May 2009 was signed on behalf of Unilever PLC by J.A. Lawrence and S.H.M.A. Dumoulin,
Director and Secretary respectively, and on behalf of Unilever
N.V. by P. Polman and S.H.M.A. Dumoulin, Director and
Secretary respectively.

Equalisation
Agreement
2009     17exv4w2

Exhibit 4.2

CONTRACT OF EMPLOYMENT

THIS AGREEMENT is made on the 25th day of June Two Thousand and Eight

B E T W E E N

	(1)	 	Unilever NV (Commercial Register No. 24051830) whose registered office is at Rotterdam and Unilever PLC (registered in England No. 41424) whose registered office is at
Port Sunlight, Wirral, Merseyside, CH62 4ZD (together the “Company”) and
	 
	(2)	 	James A Lawrence, c/o Unilever House, 100 Victoria Embankment, London, EC4Y 0DY (the "Executive”)
	 
	1.	 	Definitions and interpretation
	 
	1.1	 	Throughout this document, the following definitions shall apply:

“Board” means the board of directors of NV and PLC;

“Commencement Date” means; 1ST September 2007

“Company” means together Unilever N.V. and Unilever PLC

“Confidential Information” means information (whether or not reduced to writing) in respect of the business, affairs and financing of the Company or any member of the
Unilever Group, its or their suppliers, agents, distributors or customers, including but not limited to information relating to trade secrets or secret information,
research, technical know-how, products, designs, pricing, marketing, business and financial plans, acquisition plans, clients and customers, stored or kept in any format
including but not limited to software, diskettes including but not limited to copy-rightable material and/or documents, books, notes, tapes, instruments and property of
any kind (either tangible or intangible);

“CLO” means the General Counsel and Chief Legal Officer of the Unilever Group.

“GCE” means the Group Chief Executive of the Unilever Group;

“Intellectual Property Rights” means patents, copyright and related or neighbouring rights, trade marks and services marks, rights in goodwill or to sue for passing off,
rights in designs, rights in computer software, database rights, topography rights, rights in Confidential Information (including know-how and trade secrets) and any other
intellectual property rights (including, without limitation, rights in get-up and rights to Inventions, trade or business names or signs and domain names) in each case
whether registered or unregistered and including all applications (or rights to apply) for, and renewals or extensions of, such rights and all similar or equivalent rights
or forms of protection which may now or in the future subsist in any part of the world;

“Inventions” means inventions, ideas and improvements, whether or not patentable, and whether or not recorded in any medium;

“Group Secretary” means the Secretary of NV and PLC;

“NV” means Unilever NV;

“PLC Group” means those companies (other than NV and its wholly owned subsidiaries) within the Unilever Group the whole or part, as the case may be, of the share capital
whereof is owned directly or indirectly by the Company;

“Remuneration Committee” means the remuneration committee of the Board;

“Termination Date” means such date as shall be set by either the Company giving the Executive Director not less than twelve months prior written notice to that effect or
the Executive Director giving the Company not less than six months
prior written notice to that effect;

 

 

 “Unilever Executive” means the principal Executive Committee of the Board under the chairmanship of the GCE;

“Unilever Group” means PLC, NV and any company in which either or both together directly or indirectly owns or controls the voting rights attaching to not less than 50% of
the issued share capital, or controls directly or indirectly the appointment of a majority of the board of management, and references to a member of the Unilever Group or
a Unilever Group company will be construed accordingly;

	1.2	 	For the purposes of this Agreement, when the Executive is also a Director of PLC and/or N.V., the GCE may act instead of the Board provided always that the GCE’s actions
are subject to ratification by the Board at the next Board meeting. For the avoidance of doubt, the GCE’s actions shall be effective unless and until the Board overrules
them (and any such overruling shall be retrospective to the date the GCE took such actions unless the Board provides otherwise).
	 
	2.	 	Commencement
	 
	 	 	This Agreement is effective as of the Commencement Date which for the purpose of the UK Employment Rights Act 1996 is the date on which the Executive’s continuous period
of employment began.
	 
	3.	 	Duties of the Executive
	 
	3.1	 	The Executive shall be employed as a member of the Unilever Executive as Chief Financial Officer or in such other capacity of a like status as the Company may require and
shall carry out all duties (including, if relevant, the duties of a Board director) as may reasonably be assigned to him in whatever location is reasonably required.
	 
	3.2	 	All such duties shall be carried out honestly, faithfully, to the best of the Executive’s ability, and at all times in compliance with the Unilever Code of Business
Principles.
	 
	3.3	 	Further the Executive shall comply with all rules, regulations and legal requirements relevant to the business of the Unilever Group.
	 
	3.4	 	The Executive shall report to the GCE in his managerial capacity and, if a Director, to the Board in his capacity as a Director, and when requested by the GCE or the
Board, shall promptly provide (in writing if requested) all information, explanations and assistance relevant to any matters which have an impact on the business and
affairs of the Unilever Group or any other member thereof.
	 
	3.5	 	The Executive’s normal place of work shall be London, England or such other place as the Company may from time to time reasonably require. The Executive shall travel to
such places as are necessary for the proper discharge of his duties.
	 
	4	 	Remuneration and Benefits
	 
	4.1	 	The remuneration of the Executive will be reviewed annually by the Company, and communicated to the Executive in writing and paid in accordance with the Unilever Group’s
payroll practice, as amended from time to time.
	 
	4.2	 	The Executive will not be entitled to receive any fees or other remuneration additional to the agreed remuneration by virtue of, or in respect of, any directorships that
may be held from time to time of any Unilever Group company.
	 
	4.3	 	Any remuneration arising from a directorship of an organisation outside the Unilever Group shall be treated in accordance with the prevailing Company policy.

 

 

	4.4	 	Details of the Executive’s pension entitlement shall be notified to him separately in writing by the Company.
	 
	4.5	 	The Company shall reimburse the Executive against production of receipts all reasonable travelling, hotel, entertainment and other out-of-pocket expenses which he may from
time to time incur in the proper execution of his duties hereunder and pursuant to any Company policy in force from time to time.
	 
	5.	 	Working Hours and Holidays
	 
	5.1	 	The Executive shall work such hours as are necessary for the proper performance of his duties and devote the whole of his professional time, attention and abilities to
carrying out his duties hereunder.
	 
	5.2	 	The Executive shall be entitled to thirty working days holiday in each calendar year (in addition to Public Holidays applicable in the Executive’s normal place of work) to
be taken at times mutually agreed between the Executive and the GCE.
	 
	6.	 	Termination

The Executive’s employment shall continue unless and until it is terminated:

	 	•	 	by the Company giving the Executive twelve months’ prior written notice; or
	 
	 	•	 	by the Executive giving the Company six months’ prior written notice or being
deemed to have given such notice in accordance with clause 14.1; or
	 
	 	•	 	by the Executive giving notice to terminate his employment with NV which shall
automatically constitute the same notice of termination by the Executive of his
employment with PLC; or
	 
	 	•	 	at any time in accordance with clause 8.

	7.	 	Severance Payments
	 
	7.1	 	In the event of termination of the employment of the Executive by the Company for any reason other than a reason pursuant to Clause 8, the Company may, instead of
requiring the Executive to work during the period of notice, elect to make a severance payment to the Executive, in which case the Executive’s employment will immediately
terminate and such date shall be the date of termination for the purposes of this Agreement.
	 
	7.2	 	In such circumstances, the Executive shall be entitled to receive a severance payment which shall be the aggregate of:-

	 	•	 	a sum equal to the basic salary together with a sum equal to the benefits in kind payable by the
Company to the Executive for the period for which this Agreement would otherwise have continued;
	 
	 	•	 	the amount of the variable pay award estimated to be payable to the Executive in respect of the
Financial Year in which the notice is served, pro rated to the date of termination

	7.3	 	By this means termination may be effected by a payment of basic salary and benefits in lieu of notice for the period of notice or a combination of notice
period followed by such a payment in lieu of the remaining notice period. And to the further effect that bonus and other share based awards shall be made
pro rated to the date of termination.
	 
	7.4	 	Further, in these circumstances, the Company will ensure that the Executive shall be credited with twelve months service for the purposes of the pension
scheme referred to in the notification to be made under Clause 4.4 — such twelve month period to run from the date of serving of notice of termination.
	 
	7.5	 	The Executive will if requested sign a general release of all and any claims (contractual and statutory) in a form satisfactory to the Company in
exchange for any payment in lieu of notice.

 

 

	 
	 	 	For the avoidance of doubt, nothing in this clause 7 shall give rise to any right for the Executive to receive another form of payment.
	 
	8.	 	Summary Termination
	 
	8.1	 	The Company may terminate the Executive’s employment forthwith, without notice or compensation, in any circumstances where the Executive:
	 
	 	 	shall become incapacitated from any cause whatsoever from performing his duties hereunder for at least twelve months or more (provided that termination
of employment will not deprive the Executive of benefits under any Permanent Health Insurance Scheme provided by the Company); or
	 
	 	 	If being a director of the Company, shall be or become prohibited by law from being a director; or
	 
	 	 	is convicted of any criminal offence which prevents him from fulfilling his duties hereunder: or
	 
	 	 	shall fail to perform his duties competently or is guilty of any serious or persistent neglect in the discharge of duties, or commits any wilful, serious
or persistent breach of any codes of conduct, policies and procedures issued by the Company; or
	 
	 	 	becomes bankrupt or makes any composition or enters into any deed of arrangement with creditors;
	 
	8.2	 	Any delay by the Company in exercising the right to terminate summarily under the clauses set out above shall not constitute a waiver of that right. The
Executive shall have no claim for compensation in respect of such termination.
	 
	9.	 	Following Termination
	 
	9.1	 	Following the termination of employment, for whatever reason or by whatever means, the Executive shall not represent, either expressly or impliedly, to
any person, firm or company that he is authorised to act on behalf of any member of the Unilever Group, nor represent himself as being connected in any
way with any member of the Unilever Group.
	 
	9.2	 	Upon termination of employment, the Executive shall tender his resignation with immediate effect from any directorship that he may then be holding in any
member of the Unilever Group without any right to any claim whether for compensation or otherwise.
	 
	 	 	In the event that the Executive fails to tender resignation as aforesaid, and without prejudice to the Company’s and/or the Unilever Group’s rights and
remedies under law and in equity,
	 
	 	 	the Executive will automatically be deemed to have tendered such resignation with immediate effect and the Group Secretary and the CLO
are hereby irrevocably, and severally, authorised by the Executive, in the Executive’s name and on his behalf to sign documents
(including but not limited to letters of resignation) for the purpose of bringing such deemed resignation into immediate effect.
	 
	10.	 	Confidential Information
	 
	10.1	 	The Executive shall not (except in the proper course of his duties) at any time during the course of employment or
any time thereafter, without the prior written consent of the Company or the Unilever Group, use or disclose directly
or indirectly any Confidential Information to any person for any reason other than for the proper conduct of the
Company’s business whilst in the course of their employment, except as required by law (provided that the Executive
shall at the Company’s expense resist any alleged requirement if the Company properly asks him to do so).

 

 

	 
	10.2	 	All Confidential Information that the Executive has received or made (alone or with others) during employment with
the Company or any other member of the Unilever Group is the property of the Company or the Unilever Group and the
Executive shall promptly whenever requested by the Company and in any event upon the termination of his employment
for whatever reason return such Confidential Information to the Company and the Executive shall not be entitled to
and shall not retain any copies thereof. Title and copyright therein shall vest in the Company.
	 
	10.3	 	The Executive shall not during the continuance of employment or for 12 months thereafter without the Company’s prior
written consent, publish or cause to be published any opinion, fact or material relating to or connected with the
business of the Company or any member of the Unilever Group or its or their clients (whether confidential or not)
without first obtaining the consent of the GCE. This restriction shall not apply where the information has already
come into the public domain other than through unauthorised disclosure by the Executive.
	 
	11.	 	Executive’s Covenants
	 
	11.1	 	The Executive shall not without the prior written consent of the Company, be or become directly or indirectly engaged
or concerned or interested in any other business, trade, profession or occupation or undertake any work for any other
person, firm or company whether paid or unpaid during his employment hereunder. However nothing herein shall prevent
the Executive from holding, or otherwise having an interest in, any shares or other securities of any company for
investment purposes only, unless that holding is a significant one in a company that is a significant competitor of
any member of the Unilever Group.
	 
	11.2	 	The Executive shall not, for the period of six months following the Termination Date , work for or be engaged by, or
otherwise be involved with, any material competitors, suppliers, customers or partners of the Company or of any
member of the Unilever Group, without the prior written consent of the Company, which consent will not be
unreasonably withheld.
	 
	12.	 	Intellectual Property
	 
	12.1	 	The Executive shall notify the Company of the existence of all Inventions and of all works embodying Intellectual
Property Rights made wholly or partially by him at any time during the course of his employment with the Company and,
at the Company’s request, shall provide full written details thereof. The Executive acknowledges that all
Intellectual Property Rights subsisting (or which may in the future subsist) in all such Inventions and works shall
automatically, on creation, vest in the Company absolutely. To the extent that they do not vest automatically, the
Executive holds them on trust for the Company and shall, at the request and expense of the Company, (during the
course of his employment or thereafter) assign them to the Company or its nominee. The Executive agrees promptly to
execute all documents and do all acts as may, in the opinion of the Company, be necessary or desirable to give effect
to this clause 11.1 and/or to effect all relevant registration(s) and protections.
	 
	12.2	 	The Executive hereby irrevocably waives all moral rights under the Copyright, Designs and Patents Act 1988 (and all
similar rights in other jurisdictions) which he has or will have in any existing or future works.
	 
	12.3	 	The Executive hereby irrevocably appoints the Company to execute and do any such instrument or thing and generally to
use his name for the purpose of giving the Company or its nominee the benefit of this clause.

 

 

	 
	13.	 	Disciplinary and Grievance Procedures
	 	 	The Executive is expected at all times to conduct himself in a manner consistent with his senior status. There is no
formal grievance procedure in relation to the Executive, but in the event of any grievance, the Executive may raise
the matter with the GCE or the Board as he deems appropriate.
	 
	14.	 	Directorship/Indemnity
	 
	14.1	 	Subject and without prejudice to the Company’s rights under Clause 8 of this Agreement, if being a director of the
Company, the Company’s failure to nominate the Executive for re-election to the office of director, the removal of
the Executive from the office of director or failure of the shareholders in general meeting to re-elect the Executive
as a director of the Company, unless otherwise agreed in writing by the Executive shall be deemed notice of
termination by the Company under the provisions of Clause 6. In accordance with the Articles of Association, where an
Executive is disqualified or removed as a director of PLC he will be deemed to have been removed as a director of NV
with immediate effect.
	 
	14.2	 	If a director of the Company details of indemnity protection shall be notified to the Executive separately in writing by the Company.
	 
	15.	 	Garden Leave
	 
	15.1	 	Once notice is given under clause 6, the Company shall be under no obligation to vest in or assign to the Executive any powers or
duties or to provide any work for the Executive, and the Company may at any time or from time to time during any period of notice
(whether given by the Company or the Executive) require that the Executive does not attend at any premises of the Company.
	 
	15.2	 	Salary and benefits will not cease to be payable by reason of such requirement and the Executive shall continue to be bound by the
provisions of this Agreement and must continue at all times to conduct himself with good faith towards the Company and not do anything
that is harmful to the Company.
	 
	16	 	Suspension
	 
	 	 	In circumstances where the Company believes there is a reasonable suspicion of breach of this Agreement, in order that the
circumstances giving rise to that belief may be investigated, the Company may suspend the Executive from the performance of his duties.
Salary and benefits will not cease to be payable by reason of such suspension and the Executive shall continue to be bound by the
provisions of this Agreement and must continue at all times to conduct himself with good faith towards the Company and not do anything
that is harmful to the Company.
	 
	17.	 	Miscellaneous
	 
	17.1	 	If the Executive is at any time granted options or rights pursuant to any share option or share incentive scheme of the Company or any
member of the Unilever Group, those options or rights shall be subject to the rules of that scheme as in force from time to time which
rules shall not form part of the Executive’s service contract. In particular, if the Executive’s employment should terminate for any
reason (including as a result of a repudiatory breach of contract by the Company) his rights will be governed entirely by the terms of
that scheme and he will not be entitled to any further or other compensation for any loss of any right or benefit or prospective right
or benefit under any such scheme which he may 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.
	 
	17.2	 	The Executive consents to the Company or any member of the Unilever Group holding and processing both electronically and manually the
data it collects which relates to the Executive for the purposes of
the administration and management of its employees and its business
and for compliance with applicable procedures, laws and regulations. The Executive also consents to the transfer of such personal
information to other offices the Company may have or to any member of the Unilever Group or to other third parties whether or not
outside the European Economic Area for administration purposes in connection with the Executive’s employment where it is necessary or
desirable for the Company to do so.

 

 

	17.3	 	If any clause, identifiable part of any clause is held to be invalid or unenforceable by any court of competent jurisdiction, then this
shall not affect the validity or enforceability of the remaining clauses or identifiable parts of such.
	 
	17.4	 	No modification, variation or amendment to this Agreement shall be effective unless it is in writing and has been signed by, or on
behalf of, the parties.
	 
	18.	 	Status of these terms and conditions
	 
	 	 	This Agreement is supplemental to the letter dated 27 June 2007 setting out the Executive’s reward package, the pension notification
and the agreement of even date herewith entered into between the Executive and NV but otherwise it supersedes and replaces all
agreements or arrangements whether written, oral or implied between the Company or any member of the Unilever Group and the Executive
relating to the employment of the Executive or the termination of that employment and the Executive acknowledges and warrants that he
is not entering into this Agreement in reliance on any representation not expressly set out herein.
	 
	19.	 	Notices
	 
	19.1	 	Any notice, or other communication which is required to be served by the Company under these terms and conditions, shall be signed by
the CLO, and/or the Group Secretary if the Executive is a Director of the Company, and addressed to the Executive at the appropriate
business address.
	 
	19.2	 	Any notice or other communication which is required to be served by the Executive on the Company, will require the signature of the
Executive and be addressed to either the CLO or the Group Secretary at their office.
	 
	20.	 	Governing Law
	 
	 	 	All communications, agreements and contracts pertaining to the Executive’s employment with the Company (including, without limitation, this Agreement will be governed by
and construed in accordance with the laws of England and Wales and each of the parties hereby irrevocably agrees for the exclusive benefit of the Company and the Unilever
Group that the Courts of England and Wales are to have jurisdiction to settle any disputes which may arise out of or in connection with those documents, this Agreement or
the Executive’s employment with the Company.

	 	 	 
	Signed for and on behalf of the Company:

	 	Acceptance of these Terms and
Conditions by the Executive:
	 
	 	 
	Sgd/S G Williams, Authorised Signatory

	 	Sgd/J A Lawrence
	END
	 	 

 

 

CONTRACT OF EMPLOYMENT

THIS AGREEMENT is made on the 7th day of October Two Thousand and Eight

B E T W E E N

	(1)	 	Unilever NV (Commercial Register No. 24051830) whose registered office is at Rotterdam (“NV”) and Unilever PLC (registered in England No. 41424) whose registered office is at
Port Sunlight, Wirral, Merseyside, CH62 4ZD (“PLC”) (together the “Company”)

	 	 	and
	 
	(2)	 	Paul Polman, c/o Unilever House, 100 Victoria
Embankment, London EC4Y 0DY (the “Executive”)
	 
	1.	 	Definitions and interpretation
	 
	1.1	 	Throughout this document, the following definitions shall apply:
	 
	 	 	“Board” means the board of directors of NV and PLC;
	 
	 	 	“Commencement Date” means; 1st October 2008           
	 
	 	 	“Company” means together Unilever N.V. and Unilever PLC
	 
	 	 	“Confidential Information” means information (whether or not reduced to writing) in respect of the business, affairs and financing of the Company or any member of the Unilever Group, its or
their suppliers, agents, distributors or customers, including but not limited to information relating to trade secrets or secret information, research, technical know-how, products, designs,
pricing, marketing, business and financial plans, acquisition plans, clients and customers, stored or kept in any format including but not limited to software, diskettes including but not
limited to copy-rightable material and/or documents, books, notes, tapes, instruments and property of any kind (either tangible or intangible);
	 
	 	 	“CLO” means the General Counsel and Chief Legal Officer of the Unilever Group.
	 
	 	 	“Intellectual Property Rights” means patents, copyright and related or neighbouring rights, trade marks and services marks, rights in goodwill or to sue for passing off, rights in designs,
rights in computer software, database rights, topography rights, rights in Confidential Information (including know-how and trade secrets) and any other intellectual property rights
(including, without limitation, rights in get-up and rights to Inventions, trade or business names or signs and domain names) in each case whether registered or unregistered and including all
applications (or rights to apply) for, and renewals or extensions of, such rights and all similar or equivalent rights or forms of protection which may now or in the future subsist in any part
of the world;
	 
	 	 	“Inventions” means inventions, ideas and improvements, whether or not patentable, and whether or not recorded in any medium;
	 
	 	 	“Group Secretary” means the Secretary of NV and PLC;
	 
	 	 	“Remuneration Committee” means the remuneration committee of the Board;
	 
	 	 	“Termination Date” means the date on which the Executive’s employment terminates, as referred to in Clause 6;
	 
	 	 	“Unilever Executive” means the principal Executive Committee of the Board under the chairmanship of the Group Chief Executive;
	 
	 	 	“Unilever Group” means PLC, NV and any company in which either or both together directly or indirectly owns or controls the voting rights attaching to not less than 50% of the issued share
capital, or controls directly or indirectly the appointment of a majority of the board of management, and references to a member of the Unilever Group or a Unilever Group company will be
construed accordingly;

 

 

	 
	2.	 	Commencement
	 
	 	 	This Agreement is effective as of the Commencement Date which for the purpose of the UK Employment Rights Act 1996 is the date on which the Executive’s continuous period of
employment began.
	 
	3.	 	Duties of the Executive
	 
	3.1	 	The Executive shall be employed as a member of the Unilever Executive as Group Chief Executive and shall carry out all duties (including, if relevant, the duties of a Board
director) as may reasonably be assigned to him in whatever location is reasonably required.
	 
	3.2	 	All such duties shall be carried out honestly, faithfully, to the best of the Executive’s ability and at all times in compliance with the Unilever Code of Business Principles.
	 
	3.3	 	Further the Executive shall comply with all rules, regulations and legal requirements relevant to the business of the Unilever Group.
	 
	3.4	 	The Executive shall report to the Board in his capacity as a Director and, when requested by the Board, shall promptly provide (in writing if requested) all information,
explanations and assistance relevant to any matters which have an impact on the business and affairs of the Unilever Group or any member thereof.
	 
	3.5	 	The Executive’s normal place of work shall be London or such other place as the Company may from time to time reasonably require. The Executive shall travel to such places as
are necessary for the proper discharge of his duties.
	 
	4	 	Remuneration and Benefits
	 
	4.1	 	The remuneration of the Executive will be reviewed annually by the Company and communicated to the Executive in writing and paid in accordance with the Unilever Group’s payroll
practice, as amended from time to time.
	 
	4.2	 	The Executive will not be entitled to receive any fees or other remuneration additional to the agreed remuneration by virtue of, or in respect of, any directorships that may be
held from time to time of any Unilever Group company.
	 
	4.3	 	Any remuneration arising from a directorship of an organisation outside the Unilever Group shall be treated in accordance with the prevailing Company policy.
	 
	4.4	 	Details of the Executive’s pension entitlement shall be notified to him separately in writing by the Company.
	 
	4.5	 	The Company shall reimburse the Executive, against production of receipts, for all reasonable travelling, hotel, entertainment and other out-of-pocket expenses which he may from
time to time incur in the proper execution of his duties hereunder and pursuant to any Company policy in force from time to time.
	 
	5.	 	Working Hours and Holidays
	 
	5.1	 	The Executive shall work such hours as are necessary for the proper performance of his duties and devote the whole of his professional time, attention and abilities to carrying
out his duties hereunder.
	 
	5.2	 	The Executive shall be entitled to thirty working days holiday in each calendar year (in addition to Public Holidays applicable in the Executive’s normal place of work) to be
taken at times mutually agreed between the Executive and the Chairman.
	 
	6.	 	Termination
	 
	 	 	The Executive’s employment shall continue unless and until it is terminated:

	 
	 	•	 	by the Company giving the Executive twelve months’ prior written notice; or
	 
	 	•	 	by the Executive giving the Company six months’ prior written notice; or

 

 

	 	•	 	by the Executive giving six months prior written notice to terminate his
employment with NV which shall automatically constitute the same notice of
termination by the Executive of his employment with PLC; or
	 
	 	•	 	at any time in accordance with clauses 7 or 8.

	7.	 	Severance Payments
	 
	7.1	 	In the event of termination of the employment of the Executive by the Company for any reason other than a reason pursuant to Clause 8, the Company may, instead of requiring the
Executive to work during the period of notice, elect to make a severance payment to the Executive, in which case the Executive’s employment will immediately terminate and such
date shall be the date of termination for the purposes of this Agreement. If the Company so elects, the Executive shall be entitled to the payments and benefits referred to in
Clauses 7.2 to 7.4.
	 
	7.2	 	In such circumstances, the Executive shall, subject as provided in Clause 7.5 be entitled to receive a severance payment which shall be the aggregate of:-

	 	•	 	a sum equal to the basic salary together with a sum equal to the benefits in kind payable by the
Company to the Executive for the period for which this Agreement would otherwise have continued;
	 
	 	•	 	the amount of the variable pay award estimated by the Company to be payable to the Executive in
respect of the financial year in which the notice is served, pro rated to the date of termination

	7.3	 	By this means, if the Company elects to operate Clause 7.1, termination may be effected by a payment of basic salary and benefits in lieu of notice for the period of notice or a
combination of notice period followed by such a payment in lieu of the remaining notice period. Bonus and other share based awards shall be made pro rated to the date of
termination.
	 
	7.4	 	Further, in these circumstances, the Company will ensure that the Executive shall be credited with twelve months service for the purposes of the pension scheme referred to in
the notification to be made under Clause 4.4 — such twelve month period to run from the date of serving of notice of termination.
	 
	7.5	 	The Executive will if requested sign a general release of all and any claims (contractual and statutory) in a form satisfactory to the Company in exchange for any payment under
this Clause 7.
	 
	8.	 	Summary Termination
	 
	8.1	 	The Company may terminate the Executive’s employment forthwith, without notice or compensation, in any circumstances where the Executive:

	 	•	 	shall become incapacitated from any cause whatsoever from performing his duties hereunder for at
least twelve months (provided that termination of employment will not deprive the Executive of
benefits under any permanent health insurance scheme provided by the Company); or
	 
	 	•	 	if being a director of the Company, shall be or become prohibited by law from being a director in
either the UK or the Netherlands; or
	 
	 	•	 	is convicted of any criminal offence which prevents him from fulfilling his duties hereunder: or
	 
	 	•	 	shall fail to perform his duties competently or is guilty of any serious or persistent neglect in
the discharge of duties, or commits any wilful, serious or persistent breach of any codes of
conduct, policies and procedures issued by the Company; or
	 
	 	•	 	becomes bankrupt or makes any composition or enters into any deed of arrangement with creditors;

 

 

	8.2	 	Any delay by the Company in exercising the right to
terminate summarily under the clauses set out above shall
not constitute a waiver of that right. The Executive
shall have no claim for compensation in respect of such
termination.
	 
	9.	 	Following Termination
	 
	9.1	 	Following the termination of employment, for whatever
reason or by whatever means, the Executive shall not
represent, either expressly or impliedly, to any person,
firm or company that he is authorised to act on behalf of
any member of the Unilever Group, nor represent himself
as being connected in any way with any member of the
Unilever Group.
	 
	9.2	 	Upon termination of employment, the Executive shall
tender his resignation with immediate effect from any
directorship that he may then be holding in any member of
the Unilever Group without any right to any claim whether
for compensation or otherwise.
	 
	 	 	In the event that the Executive fails to tender his
resignation as aforesaid, and without prejudice to the
Company’s and/or the Unilever Group’s rights and remedies
under law and in equity, the Executive will automatically
be deemed to have tendered such resignation with
immediate effect and the Group Secretary and the CLO are
hereby irrevocably, and severally, authorised by the
Executive, in the Executive’s name and on his behalf to
sign documents (including but not limited to letters of
resignation) for the purpose of bringing such deemed
resignation into immediate effect.
	 
	10.	 	Confidential Information
	 
	10.1	 	The Executive shall not (except in the proper course of
his duties) at any time during the course of employment
or any time thereafter, without the prior written consent
of the Company or the Unilever Group, use or disclose
directly or indirectly any Confidential Information to
any person for any reason other than for the proper
conduct of the Company’s business whilst in the course of
their employment, except as required by law (provided
that the Executive shall at the Company’s expense resist
any alleged requirement if the Company properly asks him
to do so).
	 
	10.2	 	All Confidential Information that the Executive has
received or made (alone or with others) during employment
with the Company or any other member of the Unilever
Group is the property of the Company or the Unilever
Group and the Executive shall promptly, whenever
requested by the Company and in any event upon the
termination of his employment for whatever reason, return
such Confidential Information to the Company and the
Executive shall not be entitled to and shall not retain
any copies thereof. Title and copyright therein shall
vest in the Company.
	 
	10.3	 	The Executive shall not during the continuance of
employment or for 12 months thereafter without the
Company’s prior written consent, publish or cause to be
published any opinion, fact or material relating to or
connected with the business of the Company or any member
of the Unilever Group or its or their suppliers,
customers or partners (whether confidential or not)
without first obtaining the consent of the Board. This
restriction shall not apply where the information has
already come into the public domain other than through
unauthorised disclosure by the Executive.
	 
	11.	 	Executive’s Covenants
	 
	11.1	 	The Executive shall not, without the prior written
consent of the Company, be or become directly or
indirectly engaged or concerned or interested in any
other business, trade, profession or occupation or
undertake any work for any other person, firm or company
whether paid or unpaid during his employment hereunder.
However nothing herein shall prevent the Executive from
holding, or otherwise having an interest in, any shares
or other securities of any company for investment
purposes only, unless that holding is a significant one
in a company that is a material competitor of any member
of the Unilever Group.

 

 

	 	 	
	 
	11.2	 	The Executive shall not, for the period of six months
following the Termination Date, work for or be engaged
by, or otherwise be involved with, any material
competitors, suppliers, customers or partners of the
Company or of any member of the Unilever Group, without
the prior written consent of the Company, which consent
will not be unreasonably withheld.
	 
	12.	 	Intellectual Property
	 
	12.1	 	The Executive shall notify the Company of the existence
of all Inventions and of all works embodying Intellectual
Property Rights made wholly or partially by him at any
time during the course of his employment with the Company
and, at the Company’s request, shall provide full written
details thereof. The Executive acknowledges that all
Intellectual Property Rights subsisting (or which may in
the future subsist) in all such Inventions and works
shall automatically, on creation, vest in either NV or
PLC absolutely. To the extent that they do not vest
automatically, the Executive holds them on trust for
either NV or PLC and shall, at the request and expense of
the Company, (during the course of his employment or
thereafter) assign them to the either NV or PLC their
nominee. The Executive agrees promptly to execute all
documents and do all acts as may, in the opinion of
either NV or PLC, be necessary or desirable to give
effect to this clause 12.1 and/or to effect all relevant
registration(s) and protections.
	 
	12.2	 	The Executive hereby irrevocably waives all moral rights
under the Copyright, Designs and Patents Act 1988 (and
all similar rights in other jurisdictions) which he has
or will have in any existing or future works.
	 
	12.3	 	The Executive hereby irrevocably appoints the Company to
execute and do any such instrument or thing and generally
to use his name for the purpose of giving the Company or
its nominee the benefit of this clause.
	 
	13.	 	Disciplinary and Grievance Procedures
	 
	 	 	Other than as set out in this Agreement, there are no
explicit disciplinary rules in force in relation to the
Executive who is expected at all times to conduct himself
in a manner consistent with his senior status. There is
no formal grievance procedure but in the event of any
grievance, the Executive may raise the matter with the
Chairman or the Board, as may be appropriate.
	 
	14.	 	Directorship/Indemnity
	 
	14.1	 	Subject and without prejudice to the Company’s rights
under Clause 8 of this Agreement, if the Executive is a
director of the Company, the Company’s failure to
nominate the Executive for re-election to the office of
director of the Company, the removal of the Executive
from the office of director of the Company or failure of
the shareholders in general meeting to re-elect the
Executive as a director of the Company, unless otherwise
agreed in writing by the Executive, shall be deemed
notice of termination by the Company under the provisions
of Clause 6. In accordance with the Articles of
Association, where an Executive is disqualified or
removed as a director of PLC he will be deemed to have
been removed as a director of NV with immediate effect.
	 
	14.2	 	If a director of the Company, details of indemnity
protection shall be notified to the Executive separately
in writing by the Company.
	 
	15.	 	Garden Leave
	 
	15.1	 	Once notice is given under clause 6, the Company shall be
under no obligation to vest in or assign to the Executive
any powers or duties or to provide any work for the
Executive, and the Company may at any time or from time
to time during any period of notice (whether given by the
Company or the Executive) require that the Executive does
not attend at any premises of the Company.

 

 

	 	 	
	 
	15.2	 	Salary and benefits will not cease to be payable by
reason of such requirement and the Executive shall
continue to be bound by the provisions of this Agreement
and must continue at all times to conduct himself with
good faith towards the Company and not do anything that
is harmful to the Company.
	 
	16	 	Suspension
	 
	 	 	In circumstances where the Company believes there is a
reasonable suspicion of breach of this Agreement, in
order that the circumstances giving rise to that belief
may be investigated, the Company may suspend the
Executive from the performance of his duties. Salary and
benefits will not cease to be payable by reason of such
suspension and the Executive shall continue to be bound
by the provisions of this Agreement and must continue at
all times to conduct himself with good faith towards the
Company and not do anything that is harmful to the
Company.
	 
	17.	 	Miscellaneous
	 
	17.1	 	If the Executive is at any time granted options or rights
pursuant to any share option or share incentive scheme of
the Company or any other member of the Unilever Group,
those options or rights shall be subject to the rules of
that scheme as in force from time to time which rules
shall not form part of the Executive’s service contract.
In particular, if the Executive’s employment should
terminate for any reason (including as a result of a
repudiatory breach of contract by the Company) his rights
will be governed entirely by the terms of that scheme and
he will not be entitled to any further or other
compensation for any loss of any right or benefit or
prospective right or benefit under any such scheme which
he may 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.
	 
	17.2	 	The Executive consents to the Company or any member of
the Unilever Group holding and processing both
electronically and manually the data it collects which
relates to the Executive for the purposes of the
administration and management of its employees and its
business and for compliance with applicable procedures,
laws and regulations. The Executive also consents to the
transfer of such personal information to other offices
the Company may have or to any member of the Unilever
Group or to other third parties whether or not outside
the European Economic Area for administration purposes in
connection with the Executive’s employment where it is
necessary or desirable for the Company to do so.
	 
	17.3	 	If any clause, or identifiable part of any clause, of
this Agreement is held to be invalid or unenforceable by
any court of competent jurisdiction, then this shall not
affect the validity or enforceability of the remaining
clauses or identifiable parts of such.
	 
	17.4	 	No modification, variation or amendment to this Agreement shall be
effective unless it is in writing and has been signed by, or on behalf
of, the parties.
	 
	18.	 	Status of these terms and conditions
	 
	 	 	This Agreement is supplemental to the letter dated
29th
August 2008 setting out the Executive’s reward
package and the pensions notification but otherwise it supersedes
and replaces all agreements or arrangements whether written, oral or
implied between the Company or any member of the Unilever Group and the
Executive relating to the employment of the Executive or the termination
of that employment and the Executive acknowledges and warrants that he
is not entering into this Agreement in reliance on any representation
not expressly set out herein and shall have no remedy in relation to any
such representation.

 

 

	 
	19.	 	Notices
	 
	19.1	 	Any notice, or other communication which is required to be served by the
Company under these terms and conditions, shall be signed by the CLO,
and/or the Group Secretary if the Executive is a director of the
Company, and addressed to the Executive at the appropriate business
address.
	 
	19.2	 	Any notice or other communication which is required to be served by the
Executive on the Company, will require the signature of the Executive
and be addressed to either the CLO or the Group Secretary at their
office.
	 
	20.	 	Governing Law
	 
	 	 	All communications, agreements and contracts pertaining to the
Executive’s employment with the Company (including, without limitation,
this Agreement will be governed by and construed in accordance with the
laws of England and Wales and each of the parties hereby irrevocably
agrees for the exclusive benefit of the Company and the Unilever Group
that the Courts of England are to have jurisdiction to settle any
disputes which may arise out of or in connection with those documents,
this Agreement or the Executive’s employment with the Company.

	 	 	 
	Signed for and on behalf of the Company:

	 	Acceptance of these
Terms and
Conditions by the
Executive:
	 
	 	 
	Sgd/S G Williams, Authorised Signatory

	 	Sgd/P G J M Polman
	Sgd/S H M A Dumoulin, Authorised Signatory
	 	 
	END

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00169-of-00352.parquet"}]]