Document:

Commitment Letter

 Exhibit 10.1 
  

			
	

	  	Commitment Letter
	  	WACHOVIA SECURITIES

  
 June 27, 2005

  
 Lionbridge Technologies, Inc. 
 1050 Winter Street 
 Waltham, Massachusetts 02451 
  

	Attention:  Mr.	Steve J. Lifshatz, Senior Vice President and Chief Financial Officer 

  
 Ladies and Gentlemen: 
  
 We understand that Lionbridge Technologies, Inc., a Delaware corporation (the “Borrower”), proposes to enter into senior credit
facilities with certain financial institutions (the “Lenders”) having substantially the terms set forth on the summary of terms and conditions attached hereto (the “Term Sheet”) for an aggregate principal amount of
up to $125,000,000, consisting of a revolving credit facility of up to $25,000,000 and a term loan B facility of up to $100,000,000 (the “Facilities”). We understand that the proceeds of the Facilities will be used to (i) to
finance, in part, the acquisition (the “Acquisition”) by the Borrower of all of the capital stock of the Bowne Global Solutions division of Bowne & Co., Inc., a Delaware corporation (the “Acquired Company”),
(ii) to refinance certain existing debt of the Borrower, (iii) to pay fees and expenses in connection with the Facilities and the Acquisition, and (iv) for general corporate purposes, including providing for working capital, capital expenditures and
permitted acquisitions. 
  
 Based upon and subject to the
foregoing and to the terms and conditions set forth below and in the Term Sheet, Wachovia Bank, National Association (“Wachovia”) is pleased to confirm its commitment (the “Commitment”) to provide the entire amount
of the Facilities to the Borrower. Wachovia through its affiliate, Wachovia Capital Markets, LLC (“WCM” or the “Arranger”), is also pleased to advise you of its willingness to serve as sole lead arranger, book
runner and manager for the Facilities. Wachovia’s obligation to provide the Facilities pursuant to the Commitment is subject to the following: (i) the Borrower’s written acceptance of a letter from Wachovia to the Borrower of even date
herewith (the “Fee Letter”) pursuant to which the Borrower agrees to pay, or cause to be paid, to Wachovia certain fees in connection with the Facilities as more particularly set forth therein, (ii) completion of a definitive credit
agreement and related documentation for the Facilities in form and substance satisfactory to Wachovia, (iii) compliance with all applicable laws and regulations (including compliance of this letter agreement (this “Commitment
Letter”) and the transactions described herein with all applicable 

  

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federal banking laws, rules and regulations), (iv) the determination of Wachovia and WCM that, prior to and during the primary syndication of the Facilities,
there shall have been no competing issuance of debt, debt or equity securities (other than the issuance by the Borrower of seller notes in an aggregate principal amount up to $20,000,000 and capital stock to Bowne & Co., Inc. as consideration
for the Acquisition on terms and conditions satisfactory to Wachovia and WCM) or commercial bank facilities of the Borrower or any of its subsidiaries being offered, placed or arranged, without the prior written consent of Wachovia and WCM and (v)
the satisfaction of all other conditions described (a) in this Commitment Letter, (b) in the documentation relating to the Acquisition (the “Acquisition Documents”), except to the extent waived by the Borrower or the Acquired
Company, (c) in the Term Sheet and (d) in such definitive credit documentation. Further, Wachovia’s Commitment is subject to there not having occurred any event that has, or could be reasonably expected to have, a material adverse effect on the
business, properties, operations or condition (financial or otherwise) of the Borrower and its subsidiaries taken as a whole or the Acquired Company and its subsidiaries taken as a whole. 
  
 It is agreed that Wachovia will act as the Administrative Agent (the “Administrative Agent”) for the
Lenders under the Facilities. Wachovia, through its affiliate WCM, will also serve as sole lead arranger, book runner and manager of the syndication effort. In connection with such syndication effort, Wachovia will manage in consultation with the
Borrower all aspects of the syndication, including, without limitation, making decisions as to the selection and number of institutions to be approached and when such institutions will be approached, when commitments will be accepted, which
institutions will participate, the allocations of commitments among syndicate Lenders and the amount and distribution of fees payable to syndicate Lenders; provided, however, it is acknowledged and agreed that Wachovia’s
Commitment is not conditioned upon the completion of such syndication or the achievement of a particular debt rating so long as a rating shall have been obtained. 
  
 Wachovia reserves the right, after consultation with the Borrower, prior to or after the execution of definitive
documentation with respect to the Facilities, and as part of any syndication thereof or otherwise, to arrange for the assignment of a portion of the Commitment to one or more financial institutions that will become Lenders and be party to such
definitive documentation. In addition, in connection with any such syndication, the Borrower acknowledges that Wachovia may allocate a portion of the fees payable under the Fee Letter to such other Lenders. It is agreed, however, that no Lender will
receive compensation from or on behalf of the Borrower outside the terms contained herein and in the Fee Letter in order to provide its commitment to participate in the Facilities. 
  
 The Borrower understands that Wachovia intends to commence the syndication efforts immediately and intends to complete the
syndication prior to the closing date of the Facilities (the “Closing Date”). The Borrower agrees to actively assist Wachovia in completing a timely and orderly syndication mutually satisfactory to Wachovia and the Borrower. Such
assistance shall include, but not be limited to, (a) direct contact during the syndication between senior management, representatives and advisors of the Borrower, on the one hand, and the proposed Lenders, on the other hand, (b) assistance, in the
preparation of Confidential Information 

  

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Memoranda for the Facilities and other marketing materials to be used in connection with the syndication, (c) the hosting, with Wachovia and WCM, of one or
more meetings of prospective Lenders, and (d) obtaining, at the Borrower’s expense, monitored ratings for the term loan facility from Moody’s Investors Service (“Moody’s”) and Standard & Poor’s Ratings Group
(“S&P”) and participating actively in the process of securing such ratings, including having senior management of the Borrower meet with such rating agencies. Wachovia reserves the right to engage the services of WCM and other
of its affiliates in furnishing the services to be performed by Wachovia as contemplated herein and to allocate (in whole or in part) to any such affiliates any fees payable to it in such manner as it and its affiliates may agree in their sole
discretion. The Borrower agrees that Wachovia may share with any of its affiliates and advisors any information related to the Facilities or any other matter contemplated hereby, on a confidential basis. 
  
 The Borrower hereby represents and warrants that (i) all information, other
than the Projections (as defined below), which has been or is hereafter made available to Wachovia or the Lenders by the Borrower or any of its representatives in connection with the transactions contemplated hereby (“Information”)
is and will be complete and correct in all material respects and does not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not misleading and (ii) all
financial projections concerning the Borrower and its subsidiaries and the Acquired Company that have been or are hereafter made available to Wachovia or the Lenders by the Borrower or any of its representatives (the “Projections”)
have been or will be prepared in good faith based upon reasonable assumptions. The Borrower agrees to furnish Wachovia with such Information and Projections as Wachovia may reasonably request and to supplement the Information and the Projections
from time to time until the Closing Date so that the representation and warranty in the preceding sentence is correct on such date (including, without limitation, updating the Projections to the extent the Borrower becomes aware that such
Projections have become materially inaccurate or have been prepared based upon assumptions that the Borrower believes are no longer reasonable). In arranging and syndicating the Facilities, Wachovia will be using and relying on the Information and
the Projections without independent verification thereof. 
  
 The
Borrower agrees to reimburse Wachovia, WCM and their affiliates at closing for all of their reasonable fees and out-of-pocket expenses (including reasonable attorneys’ fees and expenses) incurred in connection with the transactions described
herein whether or not the Facilities close or any credit is extended thereunder. The Borrower also agrees to indemnify and hold harmless Wachovia, WCM and their affiliates and their respective affiliates, directors, officers, employees and agents
(collectively, the “Indemnified Parties”) from and against any and all actions, suits, losses, claims, damages and liabilities of any kind or nature, joint or several, to which such Indemnified Parties may become subject, related to
or arising out of any of the transactions contemplated herein, including without limitation the execution of definitive credit documentation and the syndication and closing of the Facilities, and will reimburse the Indemnified Parties for all
reasonable out-of-pocket expenses (including reasonable attorneys’ fees and expenses) on demand as they are incurred in connection with the investigation of, preparation for, or defense of any pending or threatened claim or any action or
proceeding 

  

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arising therefrom; provided, however, that no Indemnified Party shall have any right to indemnification for any of the foregoing to the extent
determined by a final and nonappealable judgment of a court of competent jurisdiction to have resulted from its own gross negligence, bad faith or willful misconduct. This Commitment Letter is addressed solely to the Borrower, and neither Wachovia
and WCM, on the one hand, nor the Borrower, on the other hand, shall be liable to the other or any other person for any consequential damages that may be alleged as a result of this Commitment Letter or any of the transactions referred to herein.
This Commitment Letter is not intended to confer any obligations to or benefits upon any third party. The provisions of this paragraph shall survive closing of the Facilities and any termination of this Commitment Letter. 
  
 Prior to the execution and delivery of the Commitment Letter and the Fee
Letter, the Borrower is not authorized to show or circulate this Commitment Letter, the Term Sheet or the Fee Letter, or disclose the contents thereof, to any other person or entity (other than to its affiliates, directors, officers, advisors and
legal and financial counsel, whether in connection with the Facilities or otherwise and to the sellers of the Acquired Company; provided that (i) each of such persons shall agree to be bound by the confidentiality provisions hereof, (ii) the
Borrower shall be liable for any breach of such confidentiality provisions by any such person and (iii) the Borrower may only show the Fee Letter (and may not otherwise disclose the contents of the Fee Letter) to the sellers of the Acquired Company
in a redacted form that is satisfactory to Wachovia), except as may be required by law or applicable judicial process. If the Borrower does show or circulate this Commitment Letter, the Fee Letter or the Term Sheet, or disclose the contents thereof,
in breach of the foregoing sentence, then the Borrower shall be deemed to have accepted this Commitment Letter and the Fee Letter. 
  
 The Borrower acknowledges that Wachovia and WCM or their affiliates may be providing financing or other services to parties whose interests may conflict
with the Borrower’s. Wachovia and WCM agree that they will not furnish confidential information obtained from the Borrower to any of their other customers and that they will treat confidential information relating to the Borrower and its
affiliates with the same degree of care as they treat their own confidential information. Wachovia and WCM further advise the Borrower that they will not make available to the Borrower confidential information that they have obtained or may obtain
from any other customer. 
  
 The Borrower acknowledges and agrees
that Wachovia and WCM may disclose (i) to their respective affiliates any information relating to the Facilities, the Borrower and its subsidiaries or the Acquired Company and (ii) information relating to the Facilities to Gold Sheets and other
similar bank trade publications, with such information to consist of deal terms and other information customarily found in such publications. Each of the Borrower and Wachovia shall have the right to review and approve any public announcement or
public filing made by the Borrower or Wachovia or their representatives after the date hereof relating to the Facilities or to Wachovia, WCM or the Borrower, as applicable, in connection therewith, before any such announcement or filing is made.

  

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 This Commitment Letter (i) shall be governed by and construed in accordance with the internal laws of
the State of North Carolina, (ii) constitute the entire agreement between the parties relating to the subject matter hereof and supersede any previous agreement, written or oral, between the parties with respect to the subject matter hereof, (iii)
shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, but shall not be assigned in whole or in part by the Borrower without the prior written consent of Wachovia, (iv) may not be
amended, assigned or any provision hereof waived or modified except by an instrument in writing signed by each of the parties hereto, (v) is intended to be solely for the benefit of the parties hereto and is not intended to confer any benefits on,
or create any rights in favor of, any other person or entity and (vi) may be executed in any number of counterparts, each of which shall be an original and all of which, when taken together, shall constitute one agreement. 
  
 The Administrative Agent hereby notifies you that pursuant to the
requirements of the USA Patriot Act, Title III of Pub. L. 107-56 (signed into law on October 26, 2001) (the “Patriot Act”), the Administrative Agent and each Lender are required to obtain, verify and record information that
identifies the Borrower, which information includes the name, address, tax identification number and other information regarding the Borrower that will allow the Administrative Agent or such Lender to identify the Borrower in accordance with the
Patriot Act. This notice is given in accordance with the requirements of the Patriot Act and is effective as to the Administrative Agent and each Lender. 
  
 The Commitment shall terminate at 5:00 p.m. on June 29, 2005, unless this Commitment Letter is accepted by the Borrower in writing prior to such time and,
if accepted prior to such time, shall expire at the earlier of (i) Wachovia discovering or becoming aware of any information not previously disclosed to it that it believes, in the exercise of its reasonable judgment, to be materially inconsistent
with its understanding of the credit quality or finance ability of the Borrower or the Acquired Company, based on the information provided to it by or on behalf of the Borrower prior to the date hereof, of the business, properties, operations or
condition (financial or otherwise) of the Borrower and its subsidiaries or the Acquired Company, (ii) consummation of the Acquisition or another transaction or series of transactions in which the Borrower (or any group of which the Borrower or any
of its affiliates is a party) acquires all or a substantial portion of the Acquired Company, together with the contemporaneous execution of the Credit Agreement and (iii) 5:00 p.m. on September 1, 2005, if the Closing Date shall not have occurred by
such time; provided that such expiration date shall be automatically extended to October 1, 2005 if the Borrower and the Acquired Company have not received Hart-Scott-Rodino approval and clearance (or all required waiting periods with respect
thereto have not expired) with respect to the Acquisition by September 1, 2005. 
  

 Lionbridge Technologies, Inc. 
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 If you are in agreement with the foregoing, please sign the enclosed copy of this Commitment Letter
and return it to Wachovia and WCM, together with an executed copy of the Fee Letter by no later than 5:00 p.m. on June 29, 2005. 
  

			
	 Sincerely,
  
 WACHOVIA BANK, NATIONAL ASSOCIATION

		
	 By:
	 	/s/    DAVID S. SOZIO        
	 Name:
	 	David S. Sozio
	 Title:
	 	Managing Director
	
	WACHOVIA CAPITAL MARKETS, LLC
		
	 By:
	 	/s/    DAVID S. SOZIO        
	 Name:
	 	David S. Sozio
	 Title:
	 	Managing Director

  
 Agreed to and accepted as of

 the date first above written: 
  

			
	LIONBRIDGE TECHNOLOGIES, INC.
		
	 By:
	 	/s/    RORY J. COWAN        
	 Name:
	 	Rory J. Cowan
	 Title:
	 	Chairman, President and CEO

  

 CONFIDENTIAL 
  
 LIONBRIDGE TECHNOLOGIES, INC. 
  

SENIOR SECURED DEBT FACILITY 
  
 SUMMARY OF INDICATIVE TERMS AND CONDITIONS 
  

			
	 Borrower:
	  	Lionbridge Technologies. Inc. (the “Borrower”).
		
	 Guarantees:
	  	All obligations of the Borrower under the Facilities and any interest rate protection agreements or other permitted hedging agreement entered into with any Lender (or any affiliate of any
Lender) (each a “Secured Hedging Agreement”) will be irrevocably and unconditionally guaranteed on a joint and several basis by each existing and subsequently acquired or organized material (with materiality to be determined based
on a percentage of consolidated revenues) domestic, direct or indirect, subsidiary of the Borrower (the “Guarantors”).
		
	 Facilities:
	  	Up 10 $125,000,000 comprised of the following (collectively, the “Facilities”):
		
	 	  	 (1)    $25,000,000 5-Year Revolving Credit Facility (the “Revolver”); and

		
	 	  	 (ii)    $100,000,000 6-Year Term Loan B Facility (the “Term Loan”).

		
	 	  	The Revolver will contain a sublimit of $5,000,000 for the issuance of letters of credit. Such letters of credit may be issued with maturities of up to one year, renewable annually
thereafter, and in any event shall not extend beyond the fifteenth day prior to the maturity date for the Revolver. Wachovia (defined below) will be the issuing lender for all letters of credit. The Revolver will also contain a sublimit of
$5,000,000 for swingline loans to be made available by Wachovia.
		
	 	  	The Revolver will include a $10,000,000 sublimit (the “Multi-Currency Sublimit”) for multi-currency loans to the Borrower. Under the Multi-Currency Sublimit, the Borrower may
borrow in Euros, British Pounds Sterling, Japanese Yen and Canadian Dollars.
		
	 	  	The Borrower shall have the option at any time prior to the Term Loan Maturity Date (defined below), and so long as no default shall exist and be continuing, to increase the Term Loan by
an

  

 CONFIDENTIAL 
  

			
	 	  	aggregate amount of up to 550,000,000 (with minimum increments of $25,000,000), provided that no default or event of default shall have occurred and be continuing and the Borrower secures
commitments from one or more existing and/or new lenders to provide such increase (or increases).
		
	 Administrative Agent:
	  	Wachovia Bank, National Association (“Wachovia” or the “Agent”).
		
	 Sole Lead Arranger and
 Book Runner:
	  	Wachovia Capital Markets, LLC (the “Arranger”).
		
	 Lenders:
	  	Wachovia and a syndicate of other financial institutions (the “Lenders”) acceptable to the Agent and the Arranger. The Agent and the Arranger shall consult with the Borrower
regarding the selection of the Lenders.
		
	 Use of Proceeds:
	  	The proceeds of the Facilities shall be used solely (i) to finance, in part, the acquisition (the “Acquisition”) by the Borrower of all of the capital stock of the Bowne
Global Solutions division of Bowne & Co. Inc. (the “Acquired Company”), (ii) to refinance certain existing debt of the Borrower, if applicable, (iii) to pay fees and expenses in connection with the Facilities and the
Acquisition, and (iv) for general corporate purposes, including providing for working capital, capital expenditures and permitted acquisitions.
		
	 Availability:
	  	Loans under the Revolver will be available at any time prior to the Revolver Maturity Date, subject to reduction by the aggregate amount of outstanding or unreimbursed letters of credit and
outstanding swingline loans.
		
	 	  	The Term Loan shall be drawn in full in a single draw on the closing date of the Facilities (the “Closing Date”). Amounts repaid under the Term Loan may not be
reborrowed.
		
	 Maturity Date:
	  	Revolver: 5th anniversary of the Closing Date (the
“Revolver Maturity Date”).
		
	 	  	Term Loan: 6th anniversary of the Closing Date (the
“Term Loan Maturity Date”).

  

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 CONFIDENTIAL 
  

			
	 Amortization:
	  	Revolver: None. All outstanding principal of the Revolver will be due and payable on the Revolver Maturity Date.
		
	 	  	Term Loan: Outstanding principal of the Term Loan will be payable quarterly, based on the annual amounts and for the periods as shown below:

  

																			
	 	  	Term Loan Amortization Table

	 
	 	  	Year 1

	 	 	Year 2

	 	 	Year 3

	 	 	Year 4

	 	 	Year 5

	 	 	Year 6

	 
	 Term Loan
	  	1	%	 	1	%	 	1	%	 	1	%	 	1	%	 	95	%

  

			
	 Collateral:
	  	The Facilities and each Secured Hedging Agreement will be secured by a first priority perfected lien (subject to permitted liens to be determined) on and security interest in the following
(collectively, the “Collateral”): (i) 100% of the capital stock or other equity interests of each existing and subsequently acquired or organized direct or indirect material domestic subsidiary and first-tier foreign subsidiary of
the Borrower and the Guarantors (which pledge, in the case of any first-tier foreign subsidiary, shall be limited to 65% of the capital stock of such first-tier foreign subsidiary); and (ii) substantially all tangible and intangible assets (with
carve-outs and exceptions to be mutually agreed upon) of the Borrower and the Guarantors.
		
	 Mandatory Prepayments/
 Commitment Reductions:
	  	The Borrower and its subsidiaries shall make mandatory prepayments without premium or penalty (subject to payment of any funding losses resulting from prepayment of LIBOR loans other than on
the last day of the applicable interest period) in an amount equal to (i) 100% of insurance proceeds (excluding directors and officers policies, errors and omissions policies and certain other insurance coverage), subject to reinvestment provisions
to be agreed upon, (ii) 100% of net cash proceeds from asset sales (or series of asset sales), subject to exceptions and reinvestment provisions to be agreed upon, (iii) 100% of the net cash proceeds from the issuance of any debt (other than
permitted debt), (iv) 50% of net cash proceeds from the issuance of any equity (excluding equity contributions in amounts and types to be determined), and (v) 75% of annual Excess Cash Flow (definition to be determined); provided, that if the
Total Leverage Ratio (as defined below in the “Financial Covenants” section) is less than or equal to 2.00 to 1.0 at any fiscal year end, the Borrower shall make mandatory prepayments in an amount equal to 50% of Excess Cash Flow earned
during such prior fiscal year. Such proceeds shall be applied first to repay the

  

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 CONFIDENTIAL 
  

			
	 	  	Term Loan pro rata to the remaining scheduled amortization payments thereon, and second to outstanding under the Revolver (without any permanent reduction of the Revolver
commitments).
		
	Voluntary Prepayments/ Commitment Reductions:	  	The Borrower may prepay amounts outstanding under the Facilities at any time, without premium or penalty (subject to advance notice provisions and minimum repayment amounts to be agreed upon,
and subject to payment of any funding losses resulting from prepayment of LIBOR loans other than on the last day of the applicable interest period). Additionally, the Borrower may, at its option upon five business days’ notice to the Agent,
reduce the aggregate unutilized commitments under the Revolver in part, subject to minimum reduction amounts to be agreed upon, or in whole. Each voluntary prepayment of the Term Loan shall be applied to the remaining amortization payments pro
rata.
		
	Interest Rate Options:	  	At the Borrower’s option, loans under the Facilities shall bear interest at (i) the Agent’s Alternative Base Rate (“Base Rate”) from time to time in effect plus the
applicable Base Rate Margin in effect at such time with respect to the relevant Facility or (ii) the applicable LIBOR plus the applicable LIBOR Margin in effect at such time with respect to the relevant Facility, each such Margin to be determined
from time to time in accordance with the Pricing Grid (defined below). The Base Rate Margin and the LIBOR Margin are referred to collectively as the “Applicable Margin.”
		
	 	  	The Base Rate is the higher of (i) the Agent’s prime commercial lending rate as announced from time to time or (ii) overnight federal funds rate plus 0.50% per annum. LIBOR is the London
Interbank Offered Rate for corresponding deposits of U.S. Dollars for interest periods of one, two, three, six or twelve months, subject to availability, as selected by the Borrower and as quoted to the Agent.
		
	 	  	Interest on Base Rate loans shall be payable quarterly in arrears. Interest on LIBOR loans shall be payable at the end of each applicable interest period or at three-month intervals, if
earlier. Interest shall be calculated on an actual/360-day basis for LIBOR loans and for Base Rate loans (other than Base Rate loans based on the Agent’s prime commercial lending rate, which shall be calculated on an actual/365-366-day
basis).
		
	 	  	During an event of default under the Facilities, all outstanding principal, accrued interest and other amounts shall, at the

  

 4 

 CONFIDENTIAL 
  

			
	 	  	discretion of the Required Lenders (as hereinafter defined), accrue interest at a rate per annum of 2% in excess of the rate otherwise applicable, and such interest shall be payable on
demand. The definitive credit documents shall include the Agent’s standard protective provisions for such matters as increased costs, funding losses, illegality and withholding taxes.
		
	Applicable Margin and Commitment Fee:	  	The Applicable Margin for the Revolver shall be determined quarterly on the basis of the Total Leverage Ratio (as defined below in the “Financial Covenants” section), calculated on
a rolling four quarter basis, in accordance with a pricing grid to be determined (the “Pricing Grid”). The initial Applicable Margin for the Revolver and the Applicable Margin for the Term Loan (which shall be constant for the
duration of the Facilities) shall be determined on the basis of the Borrower’s initial rating for senior secured debt as determined by Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Group (the
“Ratings”) as set forth below:

  

							
	 Tier

	  	 Rating

	  	Initial
Applicable
Margin for
LIBOR Loans
under the
Revolver

	  	Applicable
Margin for
LIBOR Loans
under the
Term Loan

	 I
	  	3B+/B1	  	300 bps	  	300 bps
	 II
	  	B+/B2 or B/B1	  	325 bps	  	325 bps
	 III
	  	B/B2	  	350 bps	  	350 bps
	 IV
	  	<B/B2	  	400 bps	  	400 bps

  

			
		
	 	  	The Commitment Fee will be payable quarterly in arrears based on the average daily-unused commitments for the Revolver and will initially be 0.50% and will be subject to change based upon a
pricing grid to be determined.
		
	Letter of Credit Fee:	  	The Borrower will pay a letter of credit fee equal to the applicable LIBOR Margin in effect from time to time for the Revolver (as determined in accordance with the Pricing Grid) on the
average daily stated amount of all letters of credit, payable quarterly in arrears to the Agent for the ratable benefit of the Lenders and calculated on an actual/360-day basis. In addition, the Borrower will pay a facing fee with respect to each
letter of credit in an amount equal to 0.25% per annum of the average daily stated amount thereof, payable quarterly in arrears to Wachovia for its own account as issuer of letters of credit and calculated on an actual/360-day
basis.

  

 5 

 CONFIDENTIAL 
  

			
	Conditions Precedent to Closing:	  	The closing and initial funding of the Facilities will be subject to the negotiation, execution and delivery of a definitive Credit Agreement and related documentation (including issuance of
appropriate guarantees, charter documents, good standing certificates, collateral documents and legal opinions) reasonably satisfactory to the Agent, the Arranger and the Lenders and to the following:
		
	 	  	 1.      All consents and approvals of the boards of directors, shareholders, governmental entities and other
applicable third parties necessary in connection with the Facilities, the Acquisition, and the transactions related thereto (the “Transactions”) shall have been obtained; all applicable material waiting periods shall have expired
without any action being taken or threatened by any competent authority; and no law or regulation shall be applicable, or event shall have occurred, that has enjoined, restrained, restricted, set aside or prohibited, or imposed materially adverse
conditions upon, the consummation of the Acquisition, the Facilities or any of the other Transactions;

		
	 	  	 2.      The Acquisition shall have been consummated in accordance with the terms of the definitive
documentation therefor, without any material amendment or waiver thereof except as approved by the Agent;

		
	 	  	 3.      There shall not have occurred any event that has, or could be reasonably expected to have a material
adverse effect on the business, properties, operations or conditions (financial or otherwise) of the Borrower or its subsidiaries or the Acquired Company;

		
	 	  	 4.      There shall be no bankruptcy or insolvency proceeding with respect to the Borrower or its
subsidiaries or the Acquired Company, and there shall be no material action, suit, proceeding or investigation before, and no order, injunction or decree shall have been entered by, any court, arbitrator or governmental authority, in each case
seeking to enjoin, restrain, restrict, set aside or prohibit, to impose material conditions upon, or to obtain substantial damages in respect of, the consummation of the Facilities or any of the other Transactions or that, in the opinion of the
Agent, could reasonably be expected to have a material adverse effect upon the business, properties, operations or conditions (financial or otherwise) of the Borrower and its subsidiaries or the

  

 6 

 CONFIDENTIAL 
  

			
	 	  	 Acquired Company, or on the ability of Borrower and its subsidiaries to perform their respective obligations under the definitive documentation for the
Facilities;

		
	 	  	 5.      The Agent shall have received satisfactory evidence that the Facilities have been rated by Standard
& Poor’s and Moody’s;

		
	 	  	 6.      The Agent shall have received (i) unaudited monthly financial statements of the Borrower and its
subsidiaries and of the Acquired Company through the next-to-last month ending immediately prior to the Closing Date, (ii) an opening pro forma balance sheet of the Borrower and its subsidiaries (subject to reasonable purchase price
adjustments) as of the last day of the next-to-last month ending immediately prior to the Closing Date giving effect to the initial funding of the Facilities and the consummation of the other Transactions in form and substance satisfactory to the
Arranger and Agent, (iii) audited financial information for the twelve month period ended December 31, 2003 and December 31, 2004 for Bowne Global Solutions and (iv) projected financial statements of the Borrower and its subsidiaries (consisting of
balance sheets and statements of income and cash flows) prepared on a quarterly basis for 2005 and on an annual basis through 2010, all of which shall be in form and substance satisfactory to the Agent;

		
	 	  	 7.      All of the existing indebtedness for borrowed money of the Borrower and its subsidiaries and of the
Acquired Company (excluding certain permitted indebtedness) shall be repaid in full and all liens or guarantees relating thereto extinguished on or prior to the Closing Date;

		
	 	  	 8.      The Borrower shall deliver opinions of counsel (including local counsel opinions) in form and
substance reasonably acceptable to the Agent and the Lenders;

		
	 	  	 9.      All filings, recordations and other actions in order to perfect the Agent’s liens and security
interests in the Collateral shall have been made or taken; in connection with any material domestic real estate Collateral, the Agent shall have received such mortgages, surveys, appraisals, title insurance policies, environmental assessments, flood
certifications, landlord waivers and other items, as it shall reasonably have requested, each in form and substance satisfactory to the Agent; and the

  

 7 

 CONFIDENTIAL 
  

			
	 	  	 Agent shall have received the results of UCC, tax lien, judgment and pending litigation searches with respect to Borrower and its subsidiaries in jurisdictions
selected by it and shall be satisfied with the results thereof;

		
	 	  	 10.    The Agent shall have received a certificate from the Borrower reasonably satisfactory to it that (i) the
Borrower and the Guarantors, taken as a whole, are solvent, and (ii) the Borrower is in compliance with all financial covenants on a pro forma basis, after giving effect to the initial borrowing under the Facilities and the consummation of the
Acquisition;

		
	 	  	 11.    The Agent shall be satisfied that, on a pro forma basis after giving effect to the initial funding of the
Facilities and the consummation of the other Transactions, (i) the Borrower is in compliance with all financial covenants in the definitive credit documentation, (ii) the aggregate total senior funded debt of the Borrower and its subsidiaries as of
the Closing Date (including capital leases and the initial funding under the Facilities) does not exceed $105,000,000 and (iii) EBITDA of the Borrower and its subsidiaries on an adjusted consolidated basis (as determined by the Agent) for the twelve
month period through the next-to-last month ending immediately prior to the Closing Date shall be no less than $32,000,000 (of which no less than $20,625,000 shall be comprised of actual combined reported EBITDA of the Borrower and its subsidiaries
and the Acquired Company);

		
	 	  	 12.    The Sources and Uses for the Acquisition shall be as set forth on Annex I hereto;
and

		
	 	  	 13.    The Agent and the Lenders shall have received all fees and expenses of the Arranger, the Agent and the Lenders
required to have been paid as a condition to the initial funding of the Facilities and such other documents, agreements and opinions in connection with the Facilities, all satisfactory in form and substance, as the Agent or any Lender may reasonably
request.

		
	 Representations and
 Warranties:
	  	The definitive credit documentation will contain representations and warranties consistent with those customarily found in similar financings and such additional representations and
warranties as may be deemed appropriate by the Agent and the Borrower including representations and warranties regarding

  

 8 

 CONFIDENTIAL 
  

			
	 	  	(i) corporate organization and power, (ii) absence of violation of organizational documents, other agreements and applicable laws, (iii) absence of material litigation, (iv) obtaining of
government approvals, (v) subsidiaries, (vi) payment of taxes, (vii) authorization and enforceability of the credit documents, (viii) information provided is accurate in all material respects, (ix) use of proceeds and compliance with margin
regulations, (x) ERISA matters, (xi) solvency, (xii) accuracy of financial statements, (xiii) accuracy of representations and warranties of the Borrowers in the documentation with respect to the Acquisition, (xiv) absence of material adverse change,
(xv) title to and sufficiency of assets, (xvi) real estate, (xvii) intellectual property, (xviii) compliance with governmental permits and licenses, (xix) insurance, (xx) compliance with laws (including the USA Patriot Act), (xxi) environmental
matters, (xxii) validity and perfection of security interests, (xxiii) status under Investment Company Act and Public Utility Holding Company Act, and (xxiv) material contracts.
		
	 Affirmative Covenants:
	  	The definitive credit documentation will contain affirmative covenants consistent with those customarily found in similar financings and such additional affirmative covenants as may be deemed
appropriate by the Agent, including without limitation: (i) delivery of quarterly unaudited consolidated financial statements and annual audited consolidated financial statements, together with financial covenant compliance certificates, (ii) annual
delivery of subsequent year operating budget and cash flow projections, prepared on a quarterly basis, (iii) delivery of regulatory reports, management letters and other specified business information, (iv) delivery of notice of material litigation,
proceedings, defaults and events of default, ERISA events, environmental matters and other significant matters, (v) maintenance of corporate existence and franchises and properties, (vi) compliance with laws, (vii) intellectual property, ERISA and
environmental matters, (viii) payment of taxes and other obligations, (ix) inspection rights and (x) maintenance of insurance, books and records.
		
	 Negative Covenants:
	  	The definitive credit documentation will contain negative covenants (with certain baskets to be agreed upon) consistent with those customarily found in similar financings and such additional
negative covenants as may be deemed appropriate by the Agent including without limitation: (i) restrictions on consolidation, merger, sale or disposition of assets and sale-leaseback transactions, (ii) restrictions on indebtedness, including
guaranties (it being understood that indebtedness of foreign subsidiaries will be permitted subject to limitations to be

  

 9 

 CONFIDENTIAL 
  

			
	 	  	mutually agreed upon), (iii) restrictions on liens (negative pledge), (iv) restrictions on joint ventures, acquisitions and other investments (other than permitted acquisitions on terms to be
determined), (v) restrictions on dividends, redemptions and distributions with respect to capital stock and redemptions and prepayments of other indebtedness, (vi) restrictions on transactions with affiliates, (vii) restrictions on changes in lines
of business, (viii) restrictions on amendments to equity documents (to the extent adverse to the interests of the Lenders) and organizational documents, and (ix) restrictions on other negative pledges, material changes in accounting policies,
changes in state of organization and changes in fiscal year.
		
	 Financial Covenants:
	  	The definitive credit documentation will contain financial covenants determined for the Borrower and its subsidiaries on a consolidated basis as follows (with definitions, levels and
step-ups/step-downs to be determined):
		
	 	  	 (a)    Maximum Total Leverage Ratio (Funded Debt to LTM Adjusted EBITDA);

 
 (b)    Maximum Senior
Leverage Ratio;
  
 (c)    Minimum Fixed Charge Coverage Ratio (Adjusted EBITDA less capital expenditures/cash interest plus cash taxes plus scheduled payments of funded debt); and
  
 (d)    Maximum Capital
Expenditures with a one-year carry forward of unused amounts.

		
	 Events of Default:
	  	The definitive credit documentation will contain events of default consistent with those customarily found in similar financings and such additional events of default as may be deemed
appropriate by the Agent, including without limitation: (i) failure to pay any principal, interest or fees when due (with customary grace periods), (ii) breach of covenants (with customary grace periods for certain affirmative covenants), (ii)
incorrectness when made of any representation or warranty, (iv) payment or other default under other indebtedness, (v) bankruptcy or insolvency, (vi) judgments or ERISA events, (vii) invalidity of guaranty or security documents and (viii) change of
control.
		
	 Assignments and
 Participations:
	  	Customary participation rights will be provided, subject to voting restrictions on significant matters. Assignments of Revolver commitments by Lenders to banks and other financial
institutions in minimum amounts of $5,000,000 will be permitted with the approval of the Agent and, provided no default or event of default exists, the Borrower (such approvals

  

 10 

 CONFIDENTIAL 
  

			
	 	  	not to be unreasonably withheld). Assignments of the Term Loan will be permitted with the approval of the Agent (but without the Borrower’s approval) in minimum amounts of $1,000,000.
Each assignment shall be subject to a payment of a $3,500 assignment fee by the assigning Lender or the purchasing Lender (as agreed between them) to the Agent.
		
	 Amendments and Waivers:
	  	Amendments and waivers of the provisions of the loan agreement and other definitive credit documentation will require the approval of Lenders holding loans and commitments representing more
than 50% of the aggregate amount of loans and commitments under the Facilities (the “Required Lenders”), except that the consent of all of the Lenders affected thereby shall be required with respect to (i) increases in the
commitment of such Lenders, (ii) reductions of principal, interest, or fees, (iii) extensions of scheduled maturities or times for payment, (iv) releases of all or substantially all of the collateral, (v) releases of all or substantially all of the
Guarantors and (vi) waivers or amendments to pro rata voting provisions or the percentage of Lenders required to approve an amendment or waiver. The consent of Lenders holding outstanding loans and commitments representing at least 50% of the
aggregate amount of loans and commitments under the Revolver will be required for any amendment to or waiver of (i) any funding condition or (ii) any other provision if the effect of such amendment or waiver is to require such Lenders to fund
revolving credit loans when such Lenders would otherwise not be required to do so.
		
	 Expenses and
 Indemnification:
	  	The Borrower will pay (a) all reasonable out-of-pocket costs and expenses of the Agent and the Arranger (including the reasonable fees and disbursements of counsel) in connection with the
preparation, execution, delivery and administration of the definitive documentation for the Facilities and any amendment or waiver with respect thereto and the syndication of the Facilities, and (b) all reasonable out-of-pocket costs and expenses of
the Agent and the Lenders (including the reasonable fees and disbursements of counsel) in connection with the enforcement of the Facilities.
		
	 	  	The Borrower will indemnify the Arranger, the Agent and the Lenders and hold them harmless against all claims, losses, liabilities and expenses (including reasonable fees and disbursements of
counsel) arising from or relating to the proposed financing contemplated hereby and the other transactions connected therewith, except to the extent of such indemnified party’s gross negligence, bad faith or willful misconduct.

  

 11 

 CONFIDENTIAL 
  

			
	 Governing Law:
	  	New York.
		
	 Miscellaneous:
	  	Customary provisions regarding consent to forum and service of process, waiver of jury trial, waiver of consequential and punitive damages and other miscellaneous matters.

  

 12 

 CONFIDENTIAL 
  

  
 Wachovia Securities is the trade name under which Wachovia Corporation conducts its investment banking, capital markets and institutional securities business through Wachovia Capital Markets, LLC, Member NYS, NASD, SIPC, and through other
bank and non-bank and broker-dealer subsidiaries of Wachovia Corporation. 
  

  
 Important Information About Opening Your New Account And/Or Entering into a Business
Relationship with Wachovia; To help fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person or corporation who opens an
account and/or enters into a business relationship. 
  

 13 

 CONFIDENTIAL 
  
 ANNEX I 
  
 Sources and Uses 
  
 ($ in thousands) 
  

											
	 Sources

	  	 	  	 	  	 Uses

	  	 
	 Lionbridge Cash
	  	$	31,100	  	 	  	Purchase Price	  	$	180,000
	 Bowne Cash
	  	 	1,400	  	 	  	Fees and Expenses	  	 	5,000
	 Revolving Credit Facility(1)
	  	 	2,500	  	 	  	Assumption of BGS Debt	  	 	1,891
	 Term Loan B
	  	 	100,000	  	 	  	 	  	 	 
	 Seller Note Issued to Bowne(2)
	  	 	7,500	  	 	  	 	  	 	 
	 Equity Issued to Bowne(2)
	  	 	42,500	  	 	  	 	  	 	 
	 Assumption of BGS Debt
	  	 	1,891	  	 	  	 	  	 	 
	 	  	
	
	  	 	  	 	  	
	

	 Total Sources
	  	$	186,891	  	 	  	Total Uses	  	$	186,891
	 	  	
	
	  	 	  	 	  	
	

	(1)	Revolver availability of $25 million. 

  

	(2)	The Seller Note and Equity issued to Bowne will be adjusted based on the trading value of the Lionbridge stock.

  

 14The rules of the Tomkins 2005 Sharesave Scheme

 Exhibit 4.8 
  

Tomkins plc 
  
 THE RULES 
  
 of the 
  
 TOMKINS 2005 SHARESAVE SCHEME

  
 Adopted by the Company in general meeting on 19 May 2005

  
 Approved by the Inland Revenue on 23 May 2005

 (Reference: SRS/2921) 
  
  
 Macfarlanes 
 10 Norwich Street 
 London EC4A 1BD 

 CONTENTS 
  

					
	 Clause

	  	 	  	Page

	1	  	Definitions	  	1
	2	  	Applications for Options	  	4
	3	  	Grant of Options	  	5
	4	  	Limitations	  	6
	5	  	Exercise Price	  	7
	6	  	Exercise and Lapse of Options	  	7
	7	  	Substitution of Shares	  	10
	8	  	Variation of Share Capital	  	11
	9	  	Rights of Ordinary Shares Allotted	  	12
	10	  	Availability of Shares	  	12
	11	  	Listing	  	12
	12	  	Transfers of Options	  	12
	13	  	Relationship between the Scheme and the Option Holders’ employment and Loss of Office	  	12
	14	  	Powers of the Board	  	13
	15	  	General	  	14
	16	  	International	  	14

 THE TOMKINS 2005 SHARESAVE SCHEME 
  

	1	Definitions 

  

	1.1	In this Scheme the following words and expressions bear the following meanings, namely:- 

  
 Act: Income Tax (Earnings and Pensions) Act 2003; 
  
 Announcement Date: a date on which the Company announces its results for any period; 
  
 Application: an application for an Option in an Approved Form;

  
 Approval Date: the date on which the Scheme receives
formal Inland Revenue approval; 
  
 Approved Form: a form
approved by the Inland Revenue; 
  
 Associated Company: in
Rule 6.2.4 an associated company as defined in paragraph 47 of Schedule 3 and in Rule 6.4 an associated company as defined in paragraph 35(4) of Schedule 3; 
  
 Board: the board of directors of the Company or a duly constituted committee of it authorised and empowered to operate the Scheme; 
  
 Bonus Date: the date on which Repayments under a Savings Contract are
due being the date on which a bonus is payable under the Savings Contract as specified by the Eligible Employee in his Application pursuant to Rules 2.3.3 and 2.3.4 subject to the provisions of Rule 3.3; 
  
 Company: Tomkins Plc (Registered in England No. 203531); 

 
 Control: the meaning given to it by section 840 of ICTA;

  
 Date of Grant: the date on which an Option is granted
as specified in the relevant Option Certificate; 
  
 Eligible
Employee: any Employee 
  

	 	(i)	whose earnings from the office or employment which makes him an Employee are (or would be if there were any) general earnings to which section 15 or 21 of the Act applies; and

  

	 	(ii)	who has, on the date on which the Board makes its Invitation for Applications under Rule 2.1, been in such office or employment at all times during such continuous period of time
(not exceeding 5 years) if any as may be determined by the Board prior to the relevant Date of Grant.; 

  
 The Board may, at its discretion, resolve to waive or vary all or any of the above conditions in respect of any Employee (but not so that they breach the
requirements of paragraph 6 of Schedule 3). Any Employee to whom the Board 

 
sends an Invitation in exercise of the discretion shall be allowed to participate in the Scheme on similar terms to all other Eligible Employees; 

 
 Employee: an employee of any company in the Group (including a
director required by the terms of his employment or office to work for the Group or any part of it for 25 hours or more per week (exclusive of meal breaks)) who is not an Excluded Person; 
  
 Excluded Person: a person who has a Material Interest; 
  
 Exercise Price: the amount payable for each Ordinary Share on the
exercise of an Option determined in accordance with Rule 5 as adjusted in accordance with Rule 8; 
  
 Group: the Company and its Subsidiaries for the time being or (where the context requires) the Company and/or any of its Subsidiaries; 

 
 ICTA: the Income and Corporation Taxes Act 1988; 
  
 Inland Revenue: the Board of Inland Revenue; 
  
 Invitation: the letter of invitation in the Approved Form;

  
 Legislative Change Date: any day on which changes to
the legislation affecting share option schemes approved by the Inland Revenue under the Act are proposed or made; 
  
 London Stock Exchange: the London Stock Exchange plc or any successor body; 
  
 Market Value: the middle market quotation of an Ordinary Share on the dealing day of the London Stock Exchange
immediately preceding the date of the relevant Invitation (or such other dealing day, or averaged over such other dealing days, as may be agreed with the Inland Revenue) as derived from the Daily Official List of the London Stock Exchange;

  
 Material Interest: an interest in 25% or more in the
Company’s share capital contrary to paragraph 11 of Schedule 3; 
  
 Option: a right to acquire Ordinary Shares granted pursuant to the Scheme; 
  
 Option Certificate: the Option Certificate in the Approved Form; 
  
 Option Holder: an Eligible Employee or a former Eligible Employee who holds an Option in accordance with the terms of the Scheme, or where the
context permits, a person becoming entitled to any such Option in consequence of the death of the original Option Holder; 
  
 Option Period: a period of six months commencing on the Bonus Date and being the period within which (subject to the provisions of the Scheme) an
Option must be exercised, if at all; 
  

 2 

 Ordinary Shares: Ordinary Shares in the Company whether issued or unissued which satisfy the
conditions specified in paragraphs 18 to 22 inclusive of Schedule 3; 
  
 Repayments: repayments made to an Eligible Employee under a Savings Contract and either including or not including the bonus payable under the Savings Contract; 
  
 Rule: a rule of the Scheme, as amended from time to time; 
  
 Savings Authority: any building society within the meaning of the
Building Societies Act 1986 or a bank within the meaning of the Banking Act 1987 nominated by the Board for the purpose of the Scheme; 
  
 Savings Contract: a certified contractual savings scheme within the meaning of Section 326 of ICTA entered into by the Eligible Employee which has
been approved for the purposes of Schedule 3 by the Inland Revenue; 
  
 Schedule 3: Schedule 3 to the Act; 
  
 Scheme: the Tomkins 2005 Sharesave Scheme; 
  
 Specified Age: 60; 
  
 Subsidiary: a
company which is for the time being a subsidiary of the Company within the definition contained in Section 736 of the Companies Act 1985 carrying on business within the United Kingdom and which is under the Control of the Company; 
  
 Treasury Shares: Ordinary Shares purchased by the Company in
circumstances in which section 162A of the Companies Act 1985 applies and held in treasury; 
  

	1.2	In this Scheme (unless the context requires otherwise):- 

  

	1.2.1	any reference to any statute or statutory provisions shall be construed as including a reference to any modification, re-enactment or extension of such statute or statutory
provision for the time being in force, to any subordinate legislation made under the same and to any former statutes or statutory provisions which is consolidated or re-enacted; 

  

	1.2.2	the singular includes a reference to the plural and vice versa; 

  

	1.2.3	the masculine gender shall include the feminine gender; 

  

	1.2.4	references to the exercise of an Option shall where the context so allows include the exercise of an Option in part. 

  

	1.3	Any words or expressions used in these Rules shall so far as not inconsistent with the context have the same meanings as in Schedule 3. 

  

	1.4	The Scheme shall be governed by and construed in accordance with the law of England and Wales. 

  

 3 

	2	Applications for Options 

  

	2.1	The Board may at any time during the forty-two day period immediately following the Approval Date and thereafter during the period beginning on, and ending forty-two days after, an
Announcement Date or a Legislative Change Date invite Applications under the Scheme from Eligible Employees by sending Invitations to them Provided that the Board may invite Applications outside these periods in circumstances which it considers in
its absolute discretion to be exceptional. 

  

	2.2	Each Invitation shall be in writing and shall specify:- 

  

	2.2.1	the Exercise Price (or the time and manner in which the Exercise Price will be communicated to Eligible Employees, which time must be prior to the Date of Grant);

  

	2.2.2	the last date by which Applications must be received (which shall be neither earlier than 14 days nor later than 21 days after the date of the Invitation); 

 

	2.2.3	whether the Board has decided to allow Eligible Employees to choose, for the purpose of determining the number of Ordinary Shares over which an Option is to be granted, whether the
payment under the Savings Contract is to be taken as including a bonus available under such Savings Contract (and, if so, which bonus) or no bonus at all; and 

  

	2.2.4	whether it is open to the Eligible Employee to choose between Savings Contracts of different durations and Bonus Dates falling on different anniversaries of the commencement of the
Savings Contract and, if so, which Savings Contracts and which Bonus Dates; 

  
 and the Board may, at its discretion, determine and include in the Invitations details of the maximum number of Ordinary Shares over which Options may be granted at that time or any maximum monthly savings
contribution. 
  

	2.3	Each Invitation shall be accompanied by such documents relating to the Savings Contract as the Savings Authority may prescribe and an Application which shall provide for the
Eligible Employee to state:- 

  

	2.3.1	the monthly savings contribution (being a multiple of £1 and not less than the minimum amount specified in the Savings Contract) which he wishes to make under the related
Savings Contract; 

  

	2.3.2	that his proposed monthly savings contribution under the Savings Contract, when added to any monthly savings contributions then being made under any other savings contract linked to
an option granted under the Scheme or any other savings related share option scheme approved under Schedule 3 will not exceed the maximum permitted under Rule 4.2; 

  

	2.3.3	if he may choose whether the Repayment under the Savings Contract is to be taken to include a bonus or no bonus for the purpose described in Rule 2.2.3, his choice in that respect;
and 

  

 4 

	2.3.4	if he may choose between Savings Contracts of different durations or Bonus Dates falling on different anniversaries of the commencement of the Savings Contract, his choice in those
respects; and 

  

	2.3.5	to authorise the Board to enter on the form of Savings Contract such monthly savings contribution (not exceeding the maximum stated on the Application) as shall be determined
pursuant to Rule 3 below. 

  

	2.4	Each Application shall be deemed to be for an Option over the largest whole number of Ordinary Shares which can be bought at the Exercise Price with the expected Repayments under
the related Savings Contract at the appropriate Bonus Date taking into account the Eligible Employee’s choice under Rule 2.3.3. 

  

	2.5	Not later than the date specified in the Invitation as the last date for receipt of an Application, each person who was an Eligible Employee on the date of the Invitation may apply
for an Option by submitting a duly completed Application. A person may only submit one Application in response to each Invitation which he receives. 

  

	2.6	An Application for an Option shall be in writing and shall be accompanied by such documents relating to the Savings Contract as the Savings Authority may prescribe, and the valid
completion and return of such documents shall be a precondition of the grant of an Option. 

  

	3	Grant of Options 

  

	3.1	The Board shall not grant an Option to any director or employee who has ceased to be a Eligible Employee at the Date of Grant. 

  

	3.2	Subject to Rules 3.1 and 3.3, the Board shall grant an Option to each Eligible Employee who has submitted a valid Application in respect of the number of Ordinary Shares for which
he is deemed to have applied within 30 days of the earliest date by reference to which the relevant Exercise Price was fixed. If the Board cannot grant Options within the 30 day period referred to in this Rule 3.2 because it is applying the scaling
down provisions contained in Rule 3.3, the Options may be granted within 42 days of the earliest date by reference to which the relevant Exercise Price was fixed. 

  

	3.3	If valid Applications are received for a total number of Ordinary Shares in excess of any maximum number of Ordinary Shares determined by the Board pursuant to Rule 2.2 or any
limitation under Rule 4, the Board shall scale down Applications by taking the following steps (or by such other procedure agreed by the Board in advance with the Inland Revenue):- 

  

	3.3.1	Either:- 

  

	 	3.3.1.1	By determining a maximum monthly savings contribution (not exceeding the limit in Rule 4.3) and reducing to that maximum any monthly savings contributions specified in the
Applications which exceed that maximum. Any Application which specifies a monthly savings contribution which is the same as or less than the maximum shall be unaffected; or 

  

 5 

	 	3.3.1.2	By reducing the monthly savings contributions in all Applications pro rata. The reduction may not result in the monthly savings contribution being below the minimum amount specified
in the Savings Contract. If it would have that effect for any Application, then the monthly savings contribution for that Application shall be the minimum amount specified in the Savings Contract; 

  

	3.3.2	If after applying either of the above steps the number of Ordinary Shares available is still insufficient to enable an Option based on the minimum monthly contributions specified in
the Savings Contract to be granted to each Eligible Employee who has made an Application, then either:- 

  

	 	3.3.2.1	Applications shall be selected by lot, each based on a monthly savings contribution of the minimum specified in the Savings Contract or 

  

	 	3.3.2.2	no Options shall be granted. 

  

	3.4	Each Application shall be deemed to have been modified or withdrawn in accordance with the provisions of Rule 3.3 and the Board shall complete each Application to reflect any
reduction in monthly savings contributions or other change to the Application resulting therefrom. 

  

	3.5	As soon as possible after Options have been granted the Company shall issue to each Option Holder an Option Certificate executed by the Company in such manner as the Board may from
time to time prescribe. Each Option Certificate shall specify the Date of Grant of the Option, the number of Ordinary Shares over which the Option is granted and the Exercise Price. If any Option Certificate shall be worn out, defaced, destroyed or
lost, it may be renewed on such evidence being provided as the Board may reasonably require. 

  

	3.6	No amount shall be paid in respect of the grant of an Option but the maintenance of the Savings Contract by the Option Holder shall be a condition of the continuance of the Option
provided that the discontinuance of a Savings Contract with a view to the exercise of an Option will not preclude the Option Holder from exercising that Option. 

  

	4	Limitations 

  

	4.1	No Options shall be granted under the Scheme later than ten years after the Approval Date. 

  

	4.2	The number of Ordinary Shares which are issued or issuable in pursuance of Options granted under the Scheme shall be limited to 10 per cent of the issued ordinary share capital of
the Company on the relevant Date of Grant provided that in assessing whether the limit has been exceeded there shall be taken into account Ordinary Shares issued or issuable pursuant to options granted within the period of ten years preceding the
relevant Date of Grant (excluding those which have lapsed or have been surrendered) under the Scheme or any other employees’ share schemes operated by the Company. 

  

 6 

 In assessing whether the limit in this Rule has been exceeded no account shall be taken of:- 

 

	4.2.1	Options which have lapsed or have been surrendered; 

  

	4.2.2	any option or other right which is to be satisfied by the transfer from a third party to the Option Holder of issued Ordinary Shares, unless the third party is an employee benefit
trust which has itself subscribed for the Ordinary Shares, in which case only those Ordinary Shares for which it has subscribed shall count; and 

  

	4.2.3	any option or other right which has been or is to be satisfied by Treasury Shares unless then current guidelines issued by the Association of British Insurers require such shares to
be taken into account. 

  

	4.3	Contributions made by an Option Holder under his Savings Contract shall not be less than £5 and shall be made in multiples of £1 per month. The maximum payments an
Option Holder may make under his Savings Contract (when aggregated with the monthly payments being made under any other Savings Contracts entered into by the Option Holder and at that date still outstanding) shall be £250 per month or such
other amount as may be specified in paragraph 25 of Schedule 3 from time to time. 

  

	5	Exercise Price 

  
 The Exercise Price shall be a price per Ordinary Share determined by the Board. The price may not be less than the higher of:- 
  

	5.1	the nominal value of such Ordinary Share, if the Option is an option to subscribe for Ordinary Shares; and 

  

	5.2	80% (or such other percentage as may be specified in paragraph 28 of Schedule 3 from time to time) of the Market Value of an Ordinary Share. 

  

	6	Exercise and Lapse of Options 

  

	6.1	Subject to Rules 6.2 and 6.4 below, the Option Holder may only exercise the Option if:- 

  

	6.1.1	at the date of exercise the Option Holder is employed by or holds office with a company in the Group and is not an Excluded Person; and 

  

	6.1.2	the Option Period has commenced and not expired. 

  

	6.2	The Option shall be exercisable earlier or otherwise than as provided in Rule 6.1 in the following circumstances:- 

  

	6.2.1	if the Option Holder ceases to hold office or employment with a company in the Group by reason of:- 

  

	 	6.2.1.1	injury or disability evidenced to the satisfaction of the Board; or 

  

	 	6.2.1.2	redundancy (within the meaning of the Employment Rights Act 1996); or 

  

 7 

	 	6.2.1.3	retirement on reaching the Specified Age or any other age at which he is bound to retire in accordance with the terms of his contract of employment; or 

  

	 	6.2.1.4	his employing company ceasing to be a member of the Group; or 

  

	 	6.2.1.5	the business or part of the business in which he is employed being transferred outside the Group. 

  
 In these circumstances he may exercise the Option within six months of so ceasing. To the extent that an Option so
exercisable is not exercised within that period it shall lapse at the end of that period; 
  

	6.2.2	if the Option Holder dies:- 

  

	 	6.2.2.1	before the commencement of the Option Period while still holding office or being employed by a company in the Group. In this circumstance the Option must be exercised (if at all)
within twelve months of his death by his legal personal representatives. To the extent that an Option so exercisable is not exercised within that period it shall lapse at the end of that period; 

  

	 	6.2.2.2	during the Option Period while still holding office or being employed by a company in the Group. In this circumstance the Option may be exercised within twelve months after the
relevant Bonus Date by his legal personal representatives. To the extent that an Option so exercisable is not exercised within that period it shall lapse at the end of that period; 

  

	6.2.3	if the Option Holder ceases to hold office or employment with a company in the Group more than three years after the Date of Grant. In these circumstances he or she may exercise the
Option within six months of so ceasing. To the extent that an Option so exercisable is not exercised within that period it shall lapse at the end of that period; 

  

	6.2.4	if, at the Bonus Date, the Option Holder holds an office or employment with a company which is a company over which the Company has Control or an Associated Company but which is not
a member of the Group (or is a member of the Group which does not participate in the Scheme), then the Option Holder may exercise the Option during the Option Period; 

  

	6.2.5	if an Option Holder reaches the Specified Age. In this circumstance he may exercise his Option within six months after attaining that age, whether or not he retires at that age;

  

	6.2.6	if any person obtains Control of the Company while the Option Holder holds office or is employed by a company in the Group as a result of making:- 

  

	 	6.2.6.1	a general offer to acquire the whole of the issued ordinary share capital of the Company not already owned by the person making the offer which is made on a condition such that if
it is satisfied the person making the offer will have Control of the Company, or 

  

 8 

	 	6.2.6.2	a general offer to acquire all the shares in the Company which are of the same class as the Ordinary Shares. 

  
 In this circumstance the Option may, subject to Rule 6.2.8, be exercised
within six months of the time when the person making the offer has obtained Control of the Company and any condition subject to which the offer is made has been satisfied. To the extent that an Option so exercisable is not exercised within such
period, it shall then lapse. For the purposes of this Rule a person shall be deemed to have obtained Control of the Company if he and others acting in concert with him have together obtained Control of it; 
  

	6.2.7	if under Section 425 of the Companies Act 1985 the court sanctions a compromise or arrangement proposed for the purposes of or in connection with a scheme for the reconstruction of
the Company or its amalgamation with any other company or companies, in this circumstance the Option may be exercised within six months of the court sanctioning the compromise or arrangement. To the extent that an Option so exercisable is not
exercised within that period it shall then lapse; 

  

	6.2.8	if any person becomes bound or entitled to acquire shares in the Company under Sections 428-430F of the Companies Act 1985, in this circumstance the Option may be exercised at any
time when that person remains so bound or entitled. To the extent that an Option so exercisable is not exercised within that period it shall then lapse; 

  

	6.2.9	if the Company passes a resolution for voluntary winding up. In this circumstance the Option may be exercised within six months of the passing of the resolution. To the extent that
an Option so exercisable is not exercised within that period it shall then lapse. 

  

	6.3	If an Option Holder ceases to hold office or employment with a company in the Group less than three years after the Date of Grant for any reason other than those set out in Rules
6.2.1 or 6.2.2.1 the Option shall lapse; 

  

	6.4	No person shall be treated for the purposes of Rules 6.1, 6.2.1 and 6.3 as ceasing to hold an office or employment with a company in the Group until he ceases to hold any office or
employment in the Company or any company in the Group or an Associated Company. 

  

	6.5	An Option Holder may exercise an Option once only in respect of all or any number of the Ordinary Shares comprised in the Option granted to him as adjusted in accordance with Rule
8. 

  

	6.6	If, before the earliest time when, in accordance with the provisions of this Scheme, an Option Holder may exercise an Option he gives (or under the regulations governing the Savings
Contract is deemed to have given) notice that he intends to stop paying contributions thereunder, such Option shall thereupon lapse. 

  

 9 

	6.7	Exercise of an Option is to be by application in writing addressed to the Company or to such other person as the Board shall direct and specifying the number of Ordinary Shares in
respect of which the Option is being exercised and accompanied by the Option Certificate, such application to be delivered or sent by prepaid post to the registered office for the time being of the Company or to such office as may from time to time
be specified by the Board. Exercise of the Option is conditional on receipt of the aggregate Exercise Price (which shall not exceed the sum obtained by way of Repayments). For this purpose any Repayment shall exclude the repayment of any
contribution the due date for payment of which falls:- 

  

	6.7.1	more than one month after the date on which the Repayment is made, or 

  

	6.7.2	after the end of the period within which the Option may be exercised. 

  

	6.8	Subject to such consents of any competent authority under the regulations or enactments for the time being in force as may be necessary and subject to compliance by the Option
Holder with the terms of the Option the Board will not later than thirty days after receipt of the application make an allotment or transfer to or procure the allotment or transfer to the Option Holder of the number of Ordinary Shares (including for
the avoidance doubt Treasury Shares) specified in the application at the Exercise Price and will deliver evidence of title to the Ordinary Shares to the Option Holder. For these purposes delivery or transfer to an Option Holder includes delivery or
transfer to a nominee for the Option Holder provided that the Option Holder acquires the beneficial ownership of the Ordinary Shares delivered or transferred. 

  

	7	Substitution of Shares 

  

	7.1	Notwithstanding the provisions of Rules 6.2.6 to 6.2.8 if any company (“the Acquiring Company”) shall:- 

  

	7.1.1	obtain Control of the Company as a result of making:- 

  

	 	7.1.1.1	a general offer to acquire the whole of the issued ordinary share capital of the Company which offer is made on a condition that if the condition is satisfied the Acquiring Company
will have Control of the Company; or 

  

	 	7.1.1.2	a general offer to acquire all shares of the Company which are of the same class as the Ordinary Shares; or 

  

	7.1.2	obtain Control of the Company in pursuance of a compromise or arrangement sanctioned by the Court under Section 425 of the Companies Act 1985; or 

  

	7.1.3	become bound or entitled to acquire shares in the Company under Sections 428 to 430F of the Companies Act 1985; 

  
 any Option Holder may at any time within the appropriate period (as defined
in Rule 7.2 below) by agreement with the Acquiring Company release his Option under the Scheme (“the Old Option”) in consideration of the grant to him of an option (“the New Option”) which is equivalent (as defined in Rule 7.3
below) to the Old Option but relates to shares in a company other than the Company (being 
  

 10 

 either the Acquiring Company or some other company within the provisions of paragraph 18(b) or (c) of
Schedule 3). The New Option shall, for all the purposes of the Scheme, be treated as having been acquired at the same time as the Old Option. 
  

	7.2	For the purposes of Rule 7.1 above the appropriate period means:- 

  

	7.2.1	in a case falling within Rule 7.1.1 a period of six months beginning with the time when the Acquiring Company has obtained Control of the Company and (if applicable) any condition
subject to which the offer is made is satisfied; 

  

	7.2.2	in a case falling within Rule 7.1.2 the period of six months beginning with the time when the court sanctions the compromise or arrangement; and 

  

	7.2.3	in a case falling within Rule 7.1.3 the period during which the Acquiring Company remains bound or entitled as mentioned in that Rule. 

  

	7.3	For the purposes of Rule 7.1 above the New Option shall be equivalent to the Old Option if the requirements of paragraph 39(4)(a) to (d) inclusive of Schedule 3 are met.

  

	7.4	For the avoidance of doubt if the Option Holder does not release his rights pursuant to the provisions of this Rule or exercise his Option pursuant to the provisions of Rules 6.2.6
to 6.2.8 within the periods permitted by those rules then all such Options held by him shall lapse. 

  

	7.5	If, in accordance with this Rule 7, an Old Option is released and a New Option granted, the New Option shall not be exercisable under Rules 6.2.6 to 6.2.8 by virtue of the event by
reason of which the New Option was granted. 

  

	7.6	Notwithstanding the definitions contained in Rule 1, if an Old Option is released in consideration of the grant of a New Option (pursuant to the provisions of Rule 7.1) Rule 1 and
Rules 6 to 13 inclusive shall in relation to the New Option be construed as if references directly or indirectly to “the Company” and to “Ordinary Shares” were references to the Acquiring Company and to shares in the capital of
the Acquiring Company or of some other company which satisfies the provisions of paragraphs 18 to 22 of Schedule 3 (except that reference to the Company in the definition of the Group shall continue to refer to Tomkins plc).

  

	8	Variation of Share Capital 

  

	8.1	On any variation of the share capital of the Company (whether by way of capitalisation or rights issue or sub-division or consolidation of the Ordinary Shares) the Exercise Price
and the number of Ordinary Shares comprised in an Option shall be varied in such manner as the Board shall determine and such decision of the Board shall be final and binding on the Option Holder and the Company provided that:-

  

	8.1.1	no adjustment to the Exercise Price shall be made pursuant to the provisions of this Rule which would result in any Ordinary Shares being issued unlawfully at a discount and if in
the case of any such Ordinary Shares such an adjustment would but for this proviso have so resulted the Exercise Price payable for such Ordinary Shares shall be the nominal amount thereof; 

  

 11 

	8.1.2	no such variation shall be made until the Inland Revenue has approved such variation. 

  

	9	Rights of Ordinary Shares Allotted 

  
 Ordinary Shares to be allotted pursuant to the exercise of any Option shall rank pari passu in all respects and as one class with the Ordinary Shares in
issue at the date of allotment and Ordinary Shares allotted or transferred shall rank in full for all dividends the record date of which falls on or after the date of exercise of the Option but shall not rank for any dividend the record date of
which precedes the date of exercise of the Option. 
  

	10	Availability of Shares 

  
 The Company shall at all times have available sufficient unissued ordinary share capital or Treasury Shares to meet any exercise of any Option taking into
account any arrangements made by the Company to procure the transfer by a third party to the relevant Option Holder of Ordinary Shares to satisfy (whether in full or in part) the exercise of any Option. 
  

	11	Listing 

  
 If Ordinary Shares of the Company are listed on the London Stock Exchange, the Company will at its expense make application for and use its reasonable
endeavours to obtain a listing on the London Stock Exchange for all Ordinary Shares allotted pursuant to the exercise of any Option. 
  

	12	Transfers of Options 

  

	12.1	No Option granted pursuant to this Scheme nor the benefit thereof may be transferred assigned charged or otherwise alienated. If an Option Holder attempts to transfer, assign,
charge or otherwise alienate his Option, that Option shall lapse immediately and the Board shall not knowingly permit its exercise. 

  

	12.2	If an Option Holder is adjudged bankrupt or does or suffers an act or thing whereby he would or might be deprived of the legal or beneficial ownership of an Option that Option shall
lapse immediately and the Board shall not knowingly permit its exercise. 

  

	12.3	Nothing in this Rule shall prohibit the transmission of an Option to the Option Holder’s personal representatives on his death. 

  

	13	Relationship between the Scheme and the Option Holders’ employment and Loss of Office 

  

	13.1	Options granted under the Scheme and any profits or gains made as a result of such Options are not pensionable under any of the Group’s pension arrangements.

  

	13.2	Participation in the Scheme does not:- 

  

 12 

	13.2.1	confer upon any person any right to participate in the Scheme at any time in the future either at all or on any particular basis; 

  

	13.2.2	confer upon any person any right to continue in employment with any member of the Group; 

  

	13.2.3	restrict the right of any member of the Group to terminate the employment of any Option Holder without liability at any time with or without cause; 

  

	13.2.4	impose upon the Board any duty to exercise any power or discretion under the Scheme to the advantage of the Option Holder; or 

  

	13.2.5	impose upon any member of the Group or the Board or their representative agents and employees any liability whatsoever (whether in contract, tort, or otherwise howsoever) in
connection with: 

  

	 	13.2.5.1	the loss of an Option Holder’s Option(s) under the Scheme; 

  

	 	13.2.5.2	the loss of an individual’s eligibility to be granted Option(s) under the Scheme; and/or 

  

	 	13.2.5.3	the manner in which any power or discretion under the Scheme is exercised or the failure or refusal of any person to exercise any power or discretion under the Scheme.

  

	13.3	Options under the Scheme shall not afford to an Option Holder any additional right to compensation on the termination of his employment which would not have existed had the Scheme
not existed and, accordingly, any individual who participates in the Scheme shall waive any rights to compensation or damages in consequence of the termination of his office or employment with a company in the Group for any reason whatsoever insofar
as these rights arise or may arise from him ceasing to have rights under or be entitled to exercise any Option under the Scheme as a result of such termination or from the loss or diminution in value of such rights and/or entitlements
notwithstanding any provision to the contrary in his contract of employment. 

  

	14	Powers of the Board 

  

	14.1	The decisions of the Board shall be final and binding in all matters relating to the Scheme, save where expressly provided otherwise. 

  

	14.2	The Board may at any time discontinue the grant of further Options or decide in any year not to grant any Options. If the Scheme is discontinued the provisions of the Scheme shall
nevertheless continue in full force and effect in relation to Options then subsisting. 

  

	14.3	The Board may amend any of the provisions of the Scheme in any way it thinks fit save that:- 

  

	14.3.1	no amendment which is to the advantage of Option Holders may be made to the provisions relating to:- 

  

	 	(i)	the persons to whom Options may be granted under the Scheme; 

  

 13 

	 	(ii)	the limitations in Rules 4.2 or 4.3; 

  

	 	(iii)	the maximum entitlement for any one Option Holder; 

  

	 	(iv)	the basis for determining an Option Holder’s entitlement to, and the terms of, Options; 

  

	 	(v)	the basis for the adjustment of Options under Rule 8; 

  
 without the prior approval of the Company in general meeting provided that amendments may be made to the Scheme without such approval if they are minor
amendments to benefit the administration of the Scheme or to take account of any change in legislation or amendments to obtain or maintain favourable tax, exchange control or regulatory treatment for Option Holders, the Company or the Group;

  

	14.3.2	it may not modify the terms of an Option already granted except with the consent of the Option Holder; 

  

	14.3.3	no amendment of a key feature shall have effect until approved by the Board of the Inland Revenue (where the Scheme is to remain approved) provided that Inland Revenue approval
shall not be required in respect of any alteration to any schedule attached hereto. (For this purpose a key feature is one which relates to a provision that is necessary in order to meet the requirements of Schedule 3). 

  

	14.4	The Board shall have the power from time to time to make and vary such regulations (not being inconsistent with the Scheme) for the implementation and administration of the Scheme
as it may think fit. 

  

	15	General 

  

	15.1	The costs of introducing, operating and administering the Scheme (including but not limited to those relating to the issue of Ordinary Shares upon the exercise of the Option) shall
be payable by the Company. 

  

	15.2	A person who is not a party to an Option has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of the Option but this does not affect any right or
remedy of a third party which exists or is available apart from the Contracts (Rights of Third Parties) Act 1999. 

  

	16	International 

  

	16.1	Notwithstanding any other provision of this Scheme, the Board may from time to time amend or alter the provisions of the Scheme and the terms of Options as they may in their
absolute discretion consider necessary or desirable to comply with or take account of relevant overseas legal, taxation or securities laws provided that such alterations or amendments shall be made in accordance with the provisions of Rule 14.

  

	16.2	Any alteration or amendment to this Scheme made in pursuance of Rule 16.1 in relation to the operation of the Scheme in a particular jurisdiction shall be contained in a separate
Schedule in respect of the operation of the Scheme in that jurisdiction to be attached hereto. 

  

 14

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