Document:

EX-4.3

 

Exhibit 4.3

Harris Interactive UK Limited Share

Incentive Plan

(relating to shares of Harris Interactive Inc)

HM Revenue & Customs reference A102416

Adopted by the Committee on 12 December 2007

Amended on 10 January 2008

Approved by HM Revenue & Customs on 31 January

2008

KPMG LLP

Arlington Business Park

Theale, Reading

RG7 4SD

 

 

Contents

	 	 	 	 	 	 	 
	1
	 	Definitions	 	 	2	 
	 
	2
	 	Eligibility of individuals	 	 	11	 
	 
	3
	 	Ordinary Awards of Free Shares	 	 	13	 
	 
	4
	 	Performance Awards of Free Shares	 	 	16	 
	 
	5
	 	Partnership Shares	 	 	20	 
	 
	6
	 	Partnership Shares and Matching Shares	 	 	24	 
	 
	7
	 	Dividend Shares	 	 	30	 
	 
	8
	 	Rights and Restrictions relating to Plan Shares	 	 	31	 
	 
	9
	 	Rights Issues and Variation of Share Capital	 	 	34	 
	 
	10
	 	Administration and Amendment	 	 	35	 
	 
	11
	 	Miscellaneous	 	 	36	 
	 
	12
	 	Limits on Shares available under the Plan	 	 	38	 
	 
	13
	 	Termination	 	 	39	 

 

1 Definitions

.1 In these Rules the following words and expressions shall have, where the context so admits, the
following meanings:

“Accumulation Period” means the period not exceeding 12 months specified in the Partnership Share
Agreement or Partnership and Matching Share Agreement during which Partnership Share Money will be
accumulated by the Trustees before being dealt with by the Trustees in accordance with Rules 5.13
or 6.17 respectively;

“Acquisition Date” means;

a) in relation to Partnership Shares, where there is no Accumulation Period, the date set by the
Trustees, being a date within 30 days after the last date on which the Partnership Share Money to
be applied in acquiring the Shares was deducted;

b) in relation to Partnership Shares, where there is an Accumulation Period, the date set by the
Trustees, being a date within 30 days after the end of the Accumulation Period which applies in
relation to the award;

c) in relation to Dividend Shares, the date set by the Trustees, being a date within 30 days after
the dividend is received by them;

“Acquisition Price” means in relation to any Partnership Shares where there is an Accumulation
Period the price at which Partnership Shares are acquired on behalf of an Eligible Employee being
the lower of:

	a)	 	the Opening Value, and
	 
	b)	 	the Closing Value;

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

“Adoption Date” means the date on which the Plan is adopted by the Harris Interactive Inc
Remuneration Committee;

“Appropriation Date” means in relation to any Free Shares or Matching Shares, the date upon which
those Free Shares or Matching Shares were, are, or are to be appropriated to a Participant pursuant
to the Plan;

“Approval Date” means the date on which HM Revenue & Customs approve the Plan;

“Associated Company” means a company which in respect of another company either:

	a)	 	controls or is controlled by that other company; or
	 
	b)	 	is under the control of the same person or persons as that other company

where the question whether a person controls a company shall be determined in accordance with
section 416(2) to (6) of the Income and Corporation Taxes Act 1988;

 

 

“Auditors” means the auditors for the time being of the Company (acting as experts and not as
arbitrators);

“Award” means an Ordinary Award or a Performance Award;

“Board” means the board of directors of the Company or a duly constituted committee thereof at
which a quorum is present;

“Closing Value” means the Market Value of a Share on the Acquisition Date;

“Committee” means a duly constituted committee delegated with the authority of the Board of Harris
Interactive Inc to operate this Plan;

“Company” means Harris Interactive UK Limited registered in England No. 2802862;

“Connected Company” means:

	a)	 	a company which Controls or is under the Control of the Company or which is under the Control
of a company which also Controls the Company; or
	 
	b)	 	a company which is a member of a consortium owning the Company or which is owned in part by
the Company as a member of a consortium and, for this purpose, a company is a member of a
consortium owning another company if it is one of a number of companies which between them
beneficially own not less than three-quarters of the company’s ordinary share capital (as
defined in Section 832 of the Income and Corporation Taxes Act 1988) and each of which
beneficially owns not less than 1/20th of that capital;

“Constituent Company” means any Group Company nominated by the Committee to participate in the Plan
from time to time;

“Control” means control as defined in section 840 of the Income and Corporation Taxes Act 1988;

“Date of Termination” means the date the plan terminates in accordance with Rule 13;

“Dealing Day” means a day on which The Stock Exchange is open for the transaction of business;

“Deduction Date” means the date on which Partnership Share Money is deducted from an Eligible
Employee’s Salary Payment;

“Dividend Shares” means Plan Shares acquired or to be acquired by the Trustees as a result of
Reinvestment which are of the same class and carry the same rights as the Plan Shares in respect of
which the relevant dividend is paid and which are not subject to any Forfeiture provision;

“Eligible Employee” means any person who is eligible to participate in the Plan in accordance with
Rule 2;

 

 

“Eligibility Date” means the date specified by the Committee within the relevant Qualifying Period
on which an employee has to be an Eligible Employee if he is to Participate in the Plan;

“Forfeiture” means a Participant ceasing to be beneficially entitled to Free Shares or Matching
Shares and Forfeitable and Forfeited shall be construed accordingly;

“Forfeiture Period” means the period not exceeding three years from the Appropriation Date during
which in certain circumstances Forfeiture may occur;

“Free Shares” means any Shares appropriated or to be appropriated in accordance with Rule 3.12 in
the case of an Ordinary Award or in accordance with Rules 4.20 in the case of a Performance Award;

“Good Leaver” means a Participant who ceases to be a Group Employee by reason of:

	a)	 	injury or disability provided the Committee are satisfied, on production of such evidence as
it may reasonably require:

	 	(i)	 	that the individual has ceased to exercise and, by reason of injury
or disability, is incapable of exercising that office or employment; and
	 
	 	(ii)	 	that the individual is likely to remain so incapable for the
foreseeable future;

	b)	 	redundancy within the meaning of the Employment Rights Act 1996;
	 
	c)	 	a transfer to which the Transfer of Undertaking (Protection of Employment) Regulations 1981
apply;
	 
	d)	 	the individual’s employing company ceasing to be an Associated Company of the Company;
	 
	e)	 	Retirement; or
	 
	f)	 	death.

“Group” means the Company and its Subsidiaries and the phrase “Group Company” shall be construed
accordingly;

“Group Employee” means an employee or an executive director of any Group Company. For the
avoidance of doubt:

	(a)	 	any offshore worker who is employed on a permanent salaried basis is a Group Employee for
this purpose; and
	 
	(b)	 	individuals who work under a contract which provides for non mutuality of obligations are not
employees (whether Eligible Employees or Group Employees) for the purposes of these Rules;

“Holding Period” means in respect of Free Shares or Matching Shares, a period of not less than
three years or more than five years beginning with the Appropriation Date during which a
Participant is normally bound under either a Participation Agreement or a Partnership and Matching
Share Agreement to:

 

 

	(a)	 	permit his Free Shares or Matching Shares to remain in the hands of the Trustees, and
	 
	(b)	 	not to assign, charge or otherwise dispose of his beneficial interest in such Shares; and

means in respect of Dividend Shares, a period of three years beginning with the Acquisition Date
during which a Participant is normally bound under a Participation Agreement, a Partnership
Share Agreement or a Partnership and Matching Share Agreement to:

	(a)	 	permit his Dividend Shares to remain in the hands of the Trustees, and
	 
	(b)	 	not to assign, charge or otherwise dispose of his beneficial interest in such Shares;

In both cases, such period(s) will be specified in each Participation Agreement or Partnership
and Matching Share Agreement;

“Initial Market Value” means the Market Value of a Share on the Appropriation Date;

“Key Feature” a feature of this Plan if it relates to a provision that is necessary in order to
meet the requirements of Chapter 6 or Schedule 2 of the Act;

“Market Value” means on any day when the Shares are not listed on The Stock Exchange the market
value of a Share determined in accordance with section 272 of the Taxation of Chargeable Gains Act
1992 and agreed in advance with HM Revenue & Customs Shares Valuation and on any day when the
Shares are so listed an amount equal to the closing middle market quotation of a Share as derived
from the Daily Official List of The Stock Exchange for the immediately preceding Dealing Day;

“Matching Shares” means any Shares appropriated or to be appropriated to Participants in accordance
with Rule 6 which are:

	a)	 	Shares of the same class with the same rights as the Partnership Shares to which they relate
other than in respect of Forfeiture;
	 
	b)	 	appropriated or to be appropriated on the same day as the Partnership Shares to which they
relate are acquired by the Trustees on behalf of Participants; and
	 
	c)	 	appropriated to all such Participants on the same basis;

“Maximum Deduction” means the maximum Partnership Share Money which may be deducted from an
Eligible Employee’s Salary Payments being not greater than:

	a)	 	£1,500 in any Year of Assessment (or such other limit specified in paragraph 46(1)(a) of
Schedule 2 to the Act);

 

 

	b)	 	10% (or such other limit specified in paragraph 46(2) of Schedule 2 to the Act) of the Salary
Payments; and
	 
	c)	 	any lower limit specified by the Company in the Partnership Share Agreement or the
Partnership and Matching Share Agreement (providing that such lower limit may not apply in so
far as it would restrict an Eligible Employee from having deductions of less than £10 on any
occasion);

“Method One” means an award of Free Shares under a Performance Award where:

	a)	 	at least 20% of the Free Shares appropriated are not Performance Shares;
	 
	b)	 	Free Shares not appropriated by reference to a Performance Target are Similar Terms Shares;
and
	 
	c)	 	the highest number of Performance Shares received by any Participant is not more than four
times the highest number of Similar Terms Shares received by any participant;

“Method Two” means where Free Shares appropriated under a Performance Award may be appropriated by
reference to one or more Performance Targets;

“Model Code” means any code for Transactions in securities issued from time to time by the relevant
authority of The Stock Exchange and/or any code adopted by the Committee in addition to or
replacement of such code;

“Opening Value” means the Market Value of the Shares on the first day of the Accumulation Period;

“Ordinary Award” means an award of Free Shares pursuant to Rule 3 where the number or availability
of Free Shares to be appropriated to Participants is at the absolute discretion of the Committee;

“Ordinary Award Participation Agreement” means a contract which must be entered into between an
Eligible Employee and the Company before an Eligible Employee may become a Participant in respect
of an Ordinary Award in a form approved by the Committee from time to time which shall, inter alia,
specify:

	a)	 	that the Eligible Employee agrees to permit his Free Shares and any Dividend Shares to remain
in the hands of the Trustees during the Holding Period for those Free Shares and Dividend
Shares; and
	 
	b)	 	that the Eligible Employee agrees not to assign, charge or otherwise dispose of his
beneficial interest in the Free Shares and any Dividend Shares during the Holding Period for
those Free Shares and Dividend Shares

provided that such agreements shall not prevent a Participant from directing the Trustees to accept
an offer for his Free Shares or Dividend Shares or agree to a transaction affecting some or all of
his Free Shares or Dividend Shares in accordance with Rule 8.

“Ordinary Share Capital” means the ordinary share capital of Harris Interactive Inc within the
meaning of section 832(1) of the Income and Corporation Taxes Act 1988;

 

 

“Parent Company” means Harris Interactive Inc registered in the State of Delaware, USA;

“Participant” means an Eligible Employee to whom Free Shares or Matching Shares have been
appropriated, or on whose behalf Partnership Shares have been acquired or (where the context
admits) his legal personal representative(s);

“Participation Agreement” means either an Ordinary Award Participation Agreement or a Performance
Award Participation Agreement;

“Partnership Share Agreement” means a contract in a form agreed in advance with HM Revenue and
Customs which must be entered into between an Eligible Employee and the Company before an Eligible
Employee may become a Participant in respect of Partnership Shares under the Plan;

“Partnership and Matching Share Agreement” means a contract which must be entered into between an
Eligible Employee and the Company before an Eligible Employee may become a Participant in respect
of Partnership Shares and Matching Shares under the Plan;

“Partnership Share Money” means money deducted from an Eligible Employee’s Salary Payment which may
be used by the Trustees to acquire Partnership Shares;

“Partnership Shares” means any Shares acquired or to be acquired by the Trustees on behalf of an
Eligible Employee in accordance with Rule 5 or Rule 6 and references in the Plan to acquisition of
Partnership Shares include the appropriation of Shares held by the Trustees;

“Performance Award” means an award of Free Shares pursuant to Rule 4 where the number or
availability of Free Shares to be appropriated to Participants is partly or wholly conditional on
the satisfaction of one or more Performance Targets;

“Performance Award Participation Agreement” means a contract which must be entered into between an
Eligible Employee and the Company before an Eligible Employee may become a Participant in respect
of a Performance Award;

“Performance Shares” means Free Shares appropriated by reference to a Performance Target;

“Performance Target” means a target which determines the number or value of Performance Shares to
be appropriated to Eligible Employees within a Performance Unit, where appropriate, which must be
based on business results or other objective criteria and be fair and objective measures of the
performance of the Eligible Employee under Method One or of the Performance Units under Method Two
to which they are or may be applied, as defined in paragraph 39 of Schedule 2 of the Act;

“Performance Unit” means one or more Eligible Employees that have been defined for the purposes of
a Performance Award using Method Two as being a Performance Unit by the Committee;

 

 

“Plan” means the Harris Interactive UK Limited Share Incentive Plan as constituted by these Rules
and the Trust Deed being the Appendix thereto;

“Plan Shares” means Shares acquired by the Trustees pursuant to this Plan (being Partnership Shares
and/or Matching Shares and/or Free Shares and/or Dividend Shares) together with all Shares
subsequently acquired by the Trustees by virtue of their holding such Shares and any reference to a
Participant’s Plan Shares is, subject to Rule 8, a reference to the Plan Shares which have been
appropriated to a Participant or acquired on behalf of a Participant by the Trustees;

“Qualifying Company” has the same meaning as in paragraph 17 of Schedule 2 of the Act;

“Qualifying Period” means a period specified by the Committee, commencing with an Eligibility Date
during which an Eligible Employee must have been either a Group Employee or an employee of a
“Qualifying Company”, which:

	(a)	 	in relation to Free Shares shall not be more than 18 months ending with the date on which the
Shares are appropriated; and
	 
	(b)	 	in relation to Partnership Shares:

	 	i)	 	where there is no Accumulation Period shall not be more than 18 months
ending with the deduction of the Partnership Share Money; or
	 
	 	ii)	 	where there is an Accumulation Period shall not be more than 6 months
ending with the start of the Accumulation Period;

“Recognised Exchange” means a recognised stock exchange within the meaning of section 841 of the
Income and Corporation Taxes Act 1988 or a recognised investment exchange within the meaning of the
Financial Services and Markets Act 2000;

“Reference Price” means;

	a)	 	in relation to any Partnership Shares where there is no Accumulation Period, the price used
for determining the number of Partnership Shares which are, were or are to be acquired by the
Trustees on behalf of an Eligible Employee being the Market Value of the Shares on the
Acquisition Date; and
	 
	b)	 	in relation to any Dividend Shares the Market Value of the Shares on the Acquisition Date;

“Reinvestment” means the application by the Trustees within thirty days of a cash dividend payment
date of that cash dividend in respect of Plan Shares to acquire further Plan Shares on behalf of
Participants or to appropriate to a Participant Plan Shares already held by the Trustees, and
“Reinvested” shall be construed accordingly;

“Retirement” means the cessation of employment by reason of retirement on or after the Specified
Age;

 

 

“Rules” means the rules of the Plan as the same may be amended from time to time and “Rule” shall
be construed accordingly;

“Salary Payment” means in relation to an Eligible Employee, such of the emoluments of the
employment by reference to which he is eligible to participate in the Plan as are liable to be paid
under deduction of tax pursuant to section 684 of the Act or which would be if that individual were
in receipt of Taxable Earnings, or would be so liable apart from Schedule 2 of the Act;

“Share” means a fully paid ordinary share in the capital of Harris Interactive Inc which complies
with the conditions set out in Part 4 of Schedule 2 to the Act;

“Similar Terms Shares” means Free Shares to be received under an Ordinary Award or under a
Performance Award other than Performance Shares by each Eligible Employee and shall be such amount
as the Committee shall determine which may be the same for each Eligible Employee or may vary by
reference to:

	a)	 	remuneration; and/or
	 
	b)	 	length of service; and/or
	 
	c)	 	hours worked

providing each of those factors gives rise to a separate entitlement directly proportional to the
amount of remuneration, length of service or hours worked and the total entitlement is the sum of
those separate entitlements;

“SIP” means a share incentive plan which is for the time being approved by HM Revenue & Customs in
accordance with Chapter 6 and Schedule 2 to the Act;

“Specified Age” means age 65;

“Subsidiary” means a company which is under the Control of the Company and which is a subsidiary of
the Company within the meaning of section 736 of the Companies Act 1985;

“Taxable Earnings” means earnings within Chapters 4 and 5 of Part 1 of the Act;

“The Stock Exchange” means NASDAQ;

“Trust Deed” means the deed dated 21 December 2007 entered into between the Company and the
Trustees as set out in the Appendix to the Rules as amended from time to time;

“Trustees” means the trustee or trustees for the time being of the Plan; and

“Year of Assessment” means a year beginning on any 6 April and ending on the following 5 April.

 

 

Interpretation

	.2	 	In these Rules, except insofar as the context otherwise requires:

	 	a)	 	words denoting the singular shall include the plural and vice versa;
	 
	 	b)	 	words importing a gender shall include every gender and reference to a person shall
include bodies corporate and unincorporated and vice versa;
	 
	 	c)	 	reference to any enactment shall be construed as a reference to that enactment as
from time to time amended, modified, extended or re-enacted and shall include any orders,
regulations, instruments or other sub-ordinate legislation made under the relevant
enactment;
	 
	 	d)	 	words have the same meanings as in Schedule 2 to the Act unless the context otherwise
requires; and
	 
	 	e)	 	headings and captions are provided for reference only and shall not be considered as
part of this Plan.

 

 

2 Eligibility of individuals

	.1	 	Any person who fulfils the conditions set out in Rules 2.2 to 2.8 below on

	 	a)	 	the Appropriation Date in respect of any Free Shares; or
	 
	 	b)	 	in respect of the purchase of Partnership Shares:

	 	i)	 	if there is no Accumulation Period, the date the Partnership Share Money
relating to the relevant purchase or Award is deducted;
	 
	 	ii)	 	if there is an Accumulation Period, the date of the first deduction of
Partnership Share Money relating to the relevant purchase or award

	 	 	shall subject to Rules 3.11, 4.18, 5.6 and 6.6 be an Eligible Employee in respect of that Award
or purchase of Partnership Shares.

	.2	 	A person shall not be an Eligible Employee unless at the relevant time he either:

	 	a)	 	receives Taxable Earnings within the meaning of section 15 or 21 of the Act in
respect of the employment by reference to which he satisfies Rule 2.1; or
	 
	 	b)	 	has been nominated by the Committee either as an individual or as a member of a
category of employee for participation in the Plan.

	.3	 	A person shall not be an Eligible Employee unless at the relevant time he:

	 	a)	 	is an employee of a Constituent Company; and
	 
	 	b)	 	where there is a Qualifying Period, has been an employee of a Qualifying Company at
all times during that period.

	.4	 	A person shall not be an Eligible Employee if on the Acquisition Date or the Appropriation
Date he is ineligible by virtue of the provisions of paragraph 19 of Schedule 2 to the Act
(material interest in a close company).
	 
	.5	 	An Eligible Employee shall not be eligible to participate in an award of Free Shares,
Matching Shares or Partnership Shares if he is at the same time to participate in an award of shares under another SIP established by the Company or a Connected Company.
	 
	.6	 	For the purposes of Rule 2.5 an Eligible Employee is treated as having participated in an
award of Free Shares if he would have been appropriated free shares under any other SIP but
for his failure to obtain a performance allowance as defined in paragraph 34(4) of Schedule 2
of the Act.

 

 

	.7	 	If an Eligible Employee participates in an Award of Shares under this Plan in a Year of
Assessment in which he has already participated in an award of shares under one or more other
SIP established by the Company or a Connected Company, the limits specified in Rules 3.6(c),
7.1 and in the Maximum Deduction shall apply as if this Plan and any other SIP were a single
plan.
	 
	.8	 	For the purposes of Rule 2.7 an Eligible Employee is treated as having participated in an
Award of Free Shares if he would have been appropriated free shares under any other SIP but
for his failure to obtain a performance allowance as defined in paragraph 34(4) of Schedule 2
of the Act.

 

 

3 Ordinary Awards of Free Shares

Timing

	.1	 	The Committee may at any time after the Approval Date but not later than the tenth anniversary of the Adoption Date
resolve that Free Shares may be awarded to Eligible Employees in the form of Ordinary Awards. The Appropriation
Date shall be a date selected by the Committee.

Quantum

	.2	 	The Committee shall in its absolute discretion from time to time determine the number or value (or method of
determining the number or value) of Free Shares to be subject to Ordinary Awards to be made on an Appropriation
Date and shall inform the Trustees of such determination as soon as practicable.
	 
	.3	 	The Committee shall also notify the Trustees of the number or value of Shares which are to be made available for
subscription by the Trustees and the price (or method of determining the price) at which those Shares are to be
offered for subscription. In the absence of any such notification or if the number of Shares available for
subscription is less than the number or value of Shares to be subject to Ordinary Awards the Trustees shall, to the
extent that they do not already hold Shares which are not Participants’ Plan Shares and which they are free to
appropriate as Free Shares under the proposed Ordinary Award, purchase Shares at such time or times as they see
fit.
	 
	.4	 	The Committee shall notify the Constituent Companies of the quantum of funds to be provided for the purpose of an
Ordinary Award as soon as practicable in which case the Committee shall also notify each Constituent Company of the
amount, if any, which it is required to either pay to the Trustees or, if all funds are to be paid to the Trustees
by the Company, to pay to the Company in respect of the employees of that Constituent Company.

Eligibility

	.5	 	When the Committee resolves to make an Ordinary Award, the Committee shall specify the Eligibility Date for that
Ordinary Award and the Qualifying Period for that Ordinary Award.

Individual Entitlement

	.6	 	The Ordinary Award to each Eligible Employee shall be an award of Similar Terms Shares provided that:

	 	a)	 	for any appropriation the basis of calculation of the entitlement of each Eligible
Employee shall be the same;
	 
	 	b)	 	fractional amounts of a Plan Share shall be rounded down; and
	 
	 	c)	 	the total of the Initial Market Value of the Free Shares appropriated to an Eligible
Employee in a Year of Assessment shall not exceed £3,000, or such other limit specified in
paragraph 35(1) of Schedule 2 to the Act.

 

 

Forfeiture

	.7	 	When the Committee resolves to make an Ordinary Award, the Committee shall specify prior to the making of that Award
whether Free Shares shall, subject to Rule 3.8, be Forfeited on a Participant ceasing to be a Group Employee in
accordance with Rule 3.9.
	 
	.8	 	Free Shares may never be Forfeited if the Participant is a Good Leaver.
	 
	.9	 	If the Committee determines that Free Shares will be Forfeitable it shall specify:

	 	a)	 	that the same Forfeiture provisions will apply to all Shares in the relevant Award;

	 	b)	i)		whether such Forfeiture will apply, subject to Rule 3.8 above, irrespective of the
reason for the Participant ceasing to be a Group Employee; or
	 
		 	ii)	 	the specific reasons for the Participant ceasing to be a Group Employee
which would result in Forfeiture;

	 	c)	 	whether the Forfeiture Period shall be the period of three years beginning with
the Appropriation Date or a shorter period (in which case it will specify the length of
the Forfeiture Period); and
	 
	 	d)	 	whether such Forfeiture will apply to the whole of an Award or to a percentage (in
which case it will specify the percentage (or percentages) where the percentage varies
according to how much of the Forfeiture Period has been completed) which may be
Forfeited).

Invitations to participate

	.10	 	The Committee shall then identify all employees who are
Eligible Employees in respect of the proposed Ordinary Award
and send them an Ordinary Award Participation Agreement
which shall inter alia specify:

	 	a)	 	the Eligibility Date;
	 
	 	b)	 	the Qualifying Period if any;
	 
	 	c)	 	the Holding Period;
	 
	 	d)	 	the circumstances, if any, in which Forfeiture shall apply; and
	 
	 	e)	 	whether the Trustees will acquire Dividend Shares.

	.11	 	Those Eligible Employees who wish to receive Free Shares
under the proposed Ordinary Award must within 21 days after
receipt of the Ordinary Award Participation Agreement or
such further period as the Committee shall allow return the
same duly completed. Any Eligible Employee who does not do
so shall cease to be an Eligible Employee in respect of
that proposed Ordinary Award.

 

 

Appropriation of Free Shares

	.12	 	The Free Shares to which each Eligible Employee is entitled
under this Rule 3 will be appropriated to him on the
Appropriation Date but will be registered in the names of
the Trustees.
	 
	.13	 	In the event that the Trustees acquire Shares for
appropriation on an Appropriation Date and some of those
Shares carry a right of any kind which is not carried by
every other such Share then such Shares as carry such right
shall, so far as practicable, be apportioned pro rata
according to the number of Shares appropriated to each
Participant on the Appropriation Date.
	 
	.14	 	As soon as practicable after any Free Shares have been
appropriated by the Trustees to a Participant in accordance
with Rule 3.12 the Trustees shall give the Participant
notice in writing of the appropriation, specifying the
number and description of Free Shares appropriated, the
Holding Period applying to those Shares and stating their
Initial Market Value and Appropriation Date.

 

 

4 Performance Awards of Free Shares

Timing (Methods One and Two)

	.1	 	The Committee may at any time after the Approval Date but
not later than the tenth anniversary of the Adoption Date
resolve that Free Shares may be awarded to Eligible
Employees in the form of Performance Awards.

Quantum (Methods One and Two)

	.2	 	When the Committee resolves to make a Performance Award
the Committee shall determine the number or value (or
method of determining the number or value) of Free Shares
to be subject to Performance Awards to be made on an
Appropriation Date and shall inform the Trustees of such
determination as soon as practicable.
	 
	.3	 	The Committee shall also notify the Trustees of the number or value of Shares which are to be
made available for subscription by the Trustees and the price (or method of determining the
price) at which those Shares are to be offered for subscription. In the absence of any such
notification or if the number or value of Shares available for subscription is less than the
number or value to be subject to Performance Awards the Trustees shall, to the extent that
they do not already hold Shares which are not Participants’ Plan Shares and which they are
free to appropriate as Free Shares under the proposed Performance Award, purchase Shares at
such time or times as they see fit.

Eligibility (Methods One and Two)

	.4	 	When the Committee resolve to make a Performance Award,
the Committee shall specify the Eligibility Date and
Qualifying Period for that Performance Award.

Method One or Method Two

	.5	 	The Committee shall specify whether that Performance Award
shall be made under Method One (in which case Rules 4.6 to
4.10 shall apply) or Method Two (in which case Rules 4.11 to
4.13 shall apply).

METHOD ONE

	.6	 	If the Committee determine that Method One is to apply then
the Committee shall specify the percentage (or method of
calculating the percentage) of Free Shares which are not to
be Performance Shares providing that such percentage shall
not be less than 20% of the total number of Free Shares to be
appropriated under the proposed Performance Award.
	 
	.7	 	The Committee shall then specify the Performance Targets that
are to be used to determine the number or value of
Performance Shares to be received by each Participant under
the proposed Performance Award and shall notify:

	 	a)	 	each Participant of the Performance Targets that will apply to him; and

 

 

	 	b)	 	all employees of Constituent Companies in general terms of the Performance Targets to
be used to determine the number of Performance Shares to be appropriated to each
Participant under the proposed Performance Award

	 	 	such notices to be given as soon as reasonably practical provided that the Company may exclude
from any notice mentioned in b) above any information the disclosure of which the Company
reasonably considers would prejudice commercial confidentiality.

Individual entitlement (Method One)

	.8	 	The Performance Shares to be received under a
Performance Award by each Eligible Employee shall be
determined in accordance with the Performance Target
set by the Committee and need not result in Performance
Shares being appropriated in accordance with Rule 4.9.
	 
	.9	 	For any appropriation of Similar Terms Shares the basis
of calculation of the entitlement of each Eligible
Employee shall be the same and fractional amounts of a
Plan Share shall be rounded down.
	 
	.10	 	The total of the Initial Market Value of Free Shares
appropriated to an Eligible Employee in a Year of
Assessment shall not exceed £3,000, or such other limit
specified in paragraph 35(1) of Schedule 2 to the Act.

METHOD TWO

	.11	 	If the Committee determine that Method Two is to apply
then the Committee shall specify the Performance Units
and the Performance Targets to apply to each of those
Performance Units which will determine the number or
value of Free Shares which Participants within each of
those Performance Units will be entitled to receive and
shall notify:

	 	a)	 	Each participant of the Performance Target that will apply to him; and
	 
	 	b)	 	All employees of Constituent Companies in general terms of the Performance Targets
to be used to determine the number of Performance Shares to be appropriated to Eligible
Employees in each Performance Unit under the proposed Performance Award.

	 	 	The notices under and a) and b) above are to be given as soon as reasonably practical provided
that the Company may exclude from any notice mentioned in b) above any information the
disclosure of which the Company reasonably considers would prejudice commercial
confidentiality.

Individual entitlement (Method Two)

	.12	 	The Performance Shares to be received by each Eligible
Employee within each Performance Unit shall be received
as if they were Similar Terms Shares provided that:

 

 

	 	 	for any appropriation the basis of calculation of the entitlement of each such Eligible
Employee shall be the same; and
	 
	 	 	fractional amounts of a Plan Share shall be rounded up or down at the discretion of the
Trustees
	 
	 	 	however there is no requirement that the number of Performance Shares received by Eligible
Employees within different Performance Units should satisfy a) above.
	 
	.13	 	The total of the Initial Market Value of the Free Shares appropriated to an Eligible Employee in a Year of
Assessment shall not exceed £3,000, or such other limit specified in paragraph 35(1) of Schedule 2 to the Act.

Forfeiture (Methods One and Two)

	.14	 	As soon as practicable after the Committee resolves to make a Performance Award using Method One or Method Two
the Committee shall specify at that time whether Free Shares shall, subject to Rule 4.15, be Forfeited on a
Participant ceasing to be a Group Employee in accordance with Rules 4.16 and 4.17.
	 
	.15	 	Free Shares shall never be Forfeited if the Participant is a Good Leaver.
	 
	.16	 	If the Committee determines that Free Shares will be Forfeitable it shall specify:

	 	a)	 	that the same Forfeiture provisions will apply to all Shares in the relevant Award;

	 	b)	i)	 	whether such Forfeiture will apply, subject to Rule 4.15 above, irrespective of
the reason for the Participant ceasing to be a Group Employee; or
	 
	 	 	ii)	 	the specific reasons for the Participant ceasing to be a Group Employee
which would result in Forfeiture;

whether the Forfeiture Period shall be the period of three years beginning with the
Appropriation Date or a shorter period (in which case it will specify the length of the
Forfeiture Period); and

	d)	 	whether such Forfeiture will apply to the whole of an Award or to a percentage (in which
case it will specify the percentage (or percentages) where the percentage varies according
to how much of the Forfeiture Period has been completed) which may be Forfeited).

Invitations to participate (Methods One and Two)

	.17	 	The Committee shall then identify all employees
who are Eligible Employees in respect of the
proposed Performance Award and send them a
Performance Award Participation Agreement which
shall inter alia specify:

	 	a)	 	the Eligibility Date;

 

 

	 	b)	 	the Qualifying Period if any;
	 
	 	c)	 	the Holding Period;
	 
	 	d)	 	the circumstances, if any, in which Forfeiture shall apply; and
	 
	 	e)	 	whether the Trustees will acquire Dividend Shares.

	.18	 	Those Eligible Employees who wish to
receive Free Shares under the proposed
Performance Award must within 21 days
after receipt of the Performance Award
Participation Agreement, or such further
period as the Committee shall allow,
return the same duly completed. Any
Eligible Employee who does not do so
shall cease to be an Eligible Employee
in respect of that Performance Award.

Allocation of funds by Constituent Companies (Methods One and Two)

	.19	 	The Committee may notify the Constituent
Companies of the quantum of funds to be
allocated for the purpose of a
Performance Award as soon as practicable
in which case the Committee shall also
notify each Constituent Company of the
amount, if any, which it is required to
either pay to the Trustees or, if all
funds are to be paid to the Trustees by
the Company, to pay to the Company in
respect of the employees of that
Constituent Company.

Appropriation of Free Shares (Methods One and Two)

	.20	 	The Free Shares to which each Eligible
Employee is entitled under this Rule 4
will be appropriated to him on the
Appropriation Date but will be
registered in the names of the Trustees.
	 
	.21	 	In the event that the Trustees acquire
Shares for appropriation on an
Appropriation Date and some of those
Shares carry a right of any kind which
is not carried by every other such Share
then such Shares as carry such right
shall, so far as practicable, be
apportioned pro rata according to the
number of Shares appropriated to each
Participant on the Appropriation Date.
	 
	.22	 	As soon as practicable after any Free
Shares have been appropriated by the
Trustees to a Participant in accordance
with Rule 4.20 the Trustees shall give
the Participant notice in writing of the
appropriation specifying the number and
description of Free Shares appropriated
and stating their Initial Market Value,
Appropriation Date and Holding Period
applicable to them.

 

 

5 Partnership Shares

Timing

	.1	 	The Committee may at any time after the Approval Date but not later than the tenth anniversary
of the Adoption Date invite every Eligible Employee to acquire Partnership Shares.

Accumulation Period or immediate purchase

	.2	 	The Committee shall then specify whether there will be

	 	a)	 	an Accumulation Period and, if so, how long the Accumulation Period will be provided
that each Accumulation Period shall be the same for all Eligible Employees; or
	 
	 	b)	 	no Accumulation Period

	 	 	and shall specify the length of the Partnership Share Agreement.

Quantum of Shares

	.3	 	The Committee shall in its absolute discretion from time to time determine the maximum number of Shares that are
to be available in respect of any issue of Partnership Share Agreements and shall inform the Trustees of such
determination as soon as practicable.
	 
	.4	 	The Committee shall also notify the Trustees of the number of Shares which are to be made available for
subscription by the Trustees and the price (or method of determining the price) at which those Shares are to be
offered for subscription. In the absence of any such notification or if the number of Shares available for
subscription is less than the maximum number to be available in respect of any issue of Partnership Share
Agreements the Trustees shall, to the extent that they do not already hold Shares which are not Participants’
Plan Shares and which they are free to acquire on behalf of employees as Partnership Shares, purchase existing
Shares at such time or times as they see fit.

Invitations to participate

	.5	 	At the time that the Committee resolves to invite Eligible Employees to enter into Partnership Share Agreements,
the Committee shall specify the Eligibility Date and the Qualifying Period and shall then identify all employees
who are Eligible Employees and send them a Partnership Share Agreement.
	 
	.6	 	Those Eligible Employees who wish to purchase Partnership Shares must within 14 days after receipt of the
Partnership Share Agreement, or such further period as the Committee shall allow, return the same duly completed
Partnership Agreement.
	 
	.7	 	Each invitation to enter into a Partnership Share Agreement shall specify:

 

 

	 	a)	 	the date (“the closing date”), being not less than 14 days after its issue by which
it must be returned duly completed to the Company; and
	 
	 	b)	 	if there is an Accumulation Period the Opening Value or that the Opening Value will
be notified to Eligible Employees as soon as is reasonably practicable after the closing
date.

	.8	 	Each Partnership Share Agreement shall specify:

	 	a)	 	whether there is a maximum number of Shares which will be available as Partnership
Shares and if so how each application may be scaled down in accordance with Rule 5.9;
	 
	 	b)	 	the amount of Partnership Share Money (not exceeding the Maximum Deduction) which
will be deducted subject to any scaling down of applications pursuant to Rule 5.9;
	 
	 	c)	 	the timing of such deductions;
	 
	 	d)	 	whether the amount or timing of the deductions can be varied with the agreement of
the Eligible Employee and the Company (and whether there are any restrictions which apply
to any request for variation;
	 
	 	e)	 	in the form prescribed by regulations made by HM Revenue & Customs, any prescribed
information as to the possible effects of deductions on an employee’s entitlement to
social security benefits and tax credits;
	 
	 	f)	 	the lengths of the Partnership Share Agreement and, where applicable, of the
Accumulation Period;
	 
	 	g)	 	whether there is an obligation on the Trustees to account for interest on Partnership
Share Money held on an Eligible Employee’s behalf (this obligation will exist if
Partnership Share Money held on behalf of an Eligible Employee is held in an interest
bearing account);
	 
	 	h)	 	if there is an Accumulation Period, where the number of Shares determined by the
Committee pursuant to Rule 5.3 is less than the aggregate of the Partnership Shares to
which each Eligible Employee is otherwise entitled, that the number of Partnership Shares
to which each Eligible Employee shall be entitled shall be reduced proportionately;
	 
	 	i)	 	if there is an Accumulation Period that any surplus Partnership Share Money remaining
after the acquisition of Partnership Shares by the Trustees may with the agreement of the
Eligible Employee be carried forward to the next Accumulation Period where there is an
Accumulation Period or otherwise to the next deduction or in any other case must be paid
over to the Eligible Employee as soon as practicable;
	 
	 	j)	 	that an Eligible Employee may at any time give notice in writing to the Company to
stop deductions under the Partnership Share Agreement but that he can subsequently give
notice to re-start deductions no more than once in any Accumulation Period although he may
not make up any deductions that have been missed;

 

 

	 	k)	 	that an Eligible Employee may withdraw from a Partnership Share Agreement at any time
in which case his Partnership Share Money shall, after deduction of income tax and primary
National Insurance contributions as appropriate be paid over to him;
	 
	 	l)	 	that Partnership shares will be purchased by the Trustees on his behalf on the
Acquisition Date unless he has previously given notice to withdraw from the Partnership
Share Agreement; and
	 
	 	m)	 	that he is free at any time to withdraw any Partnership Shares from the Plan;
	 
	 	n)	 	on the withdrawal of HM Revenue and Customs approval of the plan, or upon termination
of the plan, Partnership Share Money must be repaid to the Participant as soon as
practicable.

Individual entitlement

	.9	 	If the Company receives completed Partnership Share Agreements
in respect of an aggregate number of Shares which exceeds the
limit determined pursuant to Rule 5.8 a) above in respect of
Partnership Share invitations issued on any day, then the
following steps shall be carried out successively to the
extent necessary to eliminate the excess:

	 	a)	 	the excess over £10 of the Partnership Share Money specified by each Eligible
Employee shall be reduced pro rata to the extent necessary;
	 
	 	b)	 	Eligible Employees will be selected by lot, each based on Partnership Share Money of
£10.

	.10	 	If after applying the provision of Rule 5.9 a) the number of Shares
available is still insufficient to enable Partnership Shares based on
Partnership Share Monies of £10 to be made available to each Eligible
Employee the Committee may, as an alternative to selecting by lot as
in 5.9 b) above, determine in its absolute discretion that there shall
be no Partnership Shares.
	 
	.11	 	If the Committee so determines the provisions in Rule 5.9 may be
modified in any manner as may be agreed in advance with HM Revenue &
Customs.
	 
	.12	 	Each Partnership Share Agreement shall be deemed to have been modified
or withdrawn in accordance with the application of the foregoing
provisions and the Company shall amend each Partnership Share
Agreement to reflect any reduction in Partnership Share Money
resulting therefrom.

Purchase of Partnership Shares (Accumulation Period)

	.13	 	Where there is an Accumulation Period the
Partnership Shares which each Eligible Employee
is entitled to have purchased on his behalf
under the Partnership Share Agreement must be
acquired by the Trustees on behalf of
Participants within 30 days of the end of the
Accumulation Period but will be registered in
the names of the Trustees.

 

 

	.14	 	The number of Partnership Shares purchased by
the Trustees on behalf of a Participant shall
be calculated by dividing the total Partnership
Share Money held for that Participant by the
Acquisition Price unless the Partnership Share
Agreement provided that where the number of
Shares determined by the Committee pursuant to
Rule 5.3 is less than the aggregate of the
Partnership Shares to which each Eligible
Employee is otherwise entitled, the number of
Partnership Shares to which each Eligible
Employee shall be entitled shall be reduced
proportionately.
	 
	.15	 	In the event that the Trustees acquire Shares
some of which carry a right of any kind which
is not carried by every other such Share then
such Shares as carry such right shall so far as
practicable be apportioned pro rata according
to the number of Shares acquired for each
Participant on the Acquisition Date.
	 
	.16	 	As soon as practicable after any Partnership
Shares have been purchased by the Trustees on
behalf of a Participant in accordance with Rule
5.13 the Trustees shall give the Participant
notice in writing of the purchase specifying
the number and description of Partnership
Shares purchased and the Acquisition Date.

Purchase of Partnership Shares (No Accumulation Period)

	.17	 	Where there is no Accumulation Period the
Partnership Shares to which each Eligible
Employee is entitled to have purchased on his
behalf under the Partnership Share Agreement
must be acquired by the Trustees on behalf of
Participants on the Acquisition Date but will
be registered in the names of the Trustees.
	 
	.18	 	The number of Partnership Shares purchased by
the Trustees on behalf of a Participant shall
be calculated by dividing the total
Partnership Share Money held for that
Participant by the Reference Price.
	 
	.19	 	In the event that the Trustees acquire Shares
for appropriation on an Acquisition Date and
some of those Shares carry a right of any
kind which is not carried by every other such
Share then such Shares as carry such right
shall so far as practicable be apportioned
pro rata according to the number of Shares
appropriated to each Participant on the
Acquisition Date.
	 
	.20	 	As soon as practicable after any Partnership
Shares have been purchased by the Trustees on
behalf of a Participant in accordance with
Rule 5.17 the Trustees shall give the
Participant notice in writing of the purchase
specifying the number and description of
Partnership Shares purchased and the
Acquisition Date.
	 
	.21	 	For the avoidance of doubt, if there is an
Accumulation Period and this is followed by
no Accumulation Period within the same Year
of Assessment, the Partnership Share Money
paid during the Accumulation Period will need
to be taken into account in calculating the
Maximum Deduction for a Year of Assessment.

 

 

6 Partnership Shares and Matching Shares

Timing

.1 The Committee may at any time after the Approval Date but not later than the tenth anniversary
of the Adoption Date invite every Eligible Employee to acquire Partnership Shares and Matching
Shares.

Accumulation Period or immediate purchase

	.2	 	The Committee shall then specify whether there will be:

	 	a)	 	an Accumulation Period and, if so, how long the Accumulation Period will be, provided
that each Accumulation Period shall be the same for all Eligible Employees; or
	 
	 	b)	 	no Accumulation Period

	 	 	and shall specify the length of the Partnership and Matching Share Agreement.

Quantum of Shares

	.3	 	The Committee shall in its absolute discretion from time to time determine the maximum number of Partnership
Shares and, having determined the ratio (or method of determining the ratio) of Matching Shares to Partnership
Shares being not greater than two Matching Shares for every one Partnership Share, the Matching Shares that are
to be available in respect of any issue of Partnership and Matching Share Agreements and shall inform the
Trustees of such determination as soon as practicable.
	 
	.4	 	The Committee shall also notify the Trustees of the number of Shares which are to be made available for
subscription by the Trustees and the price (or method of determining the price) at which those Shares are to be
offered for subscription. In the absence of any such notification or if the number of Shares available for
subscription is less than the maximum number to be available in respect of any issue of Partnership and Matching
Share Agreements the Trustees shall, to the extent that they do not already hold Shares which are not
Participants’ Plan Shares and which they are free to acquire on behalf of employees as Partnership Shares or
Matching Shares purchase existing Shares at such time or times as they see fit.

Invitations to Participate

	.5	 	At the time the Committee resolves to invite Eligible Employees to enter into Partnership and Matching Share
Agreements, the Committee shall specify the Eligibility Date and the Qualifying Period and shall then identify
all employees who are Eligible Employees and send them a Partnership and Matching Share Agreement.

 

 

	.6	 	Those Eligible Employees who wish to purchase Partnership Shares must within 14 days after receipt of the
Partnership and Matching Share Agreement, or such further period as the Committee shall allow, return the same
duly completed.
        .7 Each invitation to enter into a Partnership and Matching Share Agreement shall specify:

	 	a)	 	the date (“the closing date”) being not less than 14 days after its issue by which it
must be returned duly completed to the Company; and
	 
	 	b)	 	if there is an Accumulation period the Opening Value or that the Opening Value will
be notified to Eligible Employees as soon as is reasonably practicable after the closing
date;

	.8	 	Each Partnership and Matching Share Agreement shall specify:

	 	a)	 	whether there is a maximum number of shares which will be available as Partnership
Shares and if so how each application may be scaled down in accordance with Rule 6.9;
	 
	 	b)	 	the amount of Partnership Share Money (not exceeding the Maximum Deduction) which
will be deducted subject to any scaling down of applications pursuant to Rule 6.9;
	 
	 	c)	 	the timing of such deductions
	 
	 	d)	 	whether the amount or timing of the deductions can be varied with the agreement of
the Eligible Employee and the Company (and whether there are any restrictions which apply
to any request for variation);
	 
	 	e)	 	in the form prescribed by regulations made by HM Revenue & Customs, any prescribed
information as to the possible effects of deductions on an Eligible Employee’s entitlement
to social security benefits and tax credits.
	 
	 	f)	 	the lengths of the Partnership and Matching Share Agreement and, where applicable of
the Accumulation Period;
	 
	 	g)	 	whether there is an obligation on the Trustees to account for interest on Partnership
Share Money held on an Eligible Employee’s behalf (this obligation will exist if the
Partnership Share Money held on an Eligible Employee’s behalf is held in an interest
bearing account);
	 
	 	h)	 	if there is an Accumulation Period, when the number of Shares determined by the
Committee pursuant to Rule 6.3 is less than the aggregate of the Partnership Shares to
which each Eligible Employee is otherwise entitled, the number of Partnership Shares to
which each Eligible Employee shall be entitled shall be proportionately reduced;
	 
	 	i)	 	if there is an Accumulation Period that any surplus Partnership Share Money remaining
after the acquisition of Partnership Shares by the Trustees may with the agreement of the
Eligible Employee be carried forward to the

 

 

	 	 	 	next Accumulation Period where there is an Accumulation Period or otherwise to the next
deduction or in any other case must be paid over to the Eligible Employee as soon as
practicable;
	 
	 	j)	 	that an Eligible Employee may at any time give notice in writing to the Company to
stop deductions under the Partnership and Matching Share Agreement but that he can
subsequently give notice to re-start deductions no more than once in any Accumulation
Period although he may not make up any deductions that have been missed;
	 
	 	k)	 	that an Eligible Employee may withdraw from a Partnership and Matching Share
Agreement at an time in which case his Partnership Share Money shall after deduction of
income tax and primary National Insurance contributions as appropriate be paid over to
him;
	 
	 	l)	 	that Partnership Shares will be purchased by the Trustees on his behalf on the
Acquisition Date unless he has previously given notice to withdraw from the Partnership
and Matching Share Agreement;
	 
	 	m)	 	the ratio (or method of determining the ratio) of Matching Shares that will be
awarded for every Partnership Share purchased such ratio not to exceed two Matching Shares
for each Partnership Share;
	 
	 	n)	 	On the withdrawal of HM Revenue and Customs approval of the plan, or upon termination
of the plan, Partnership Share Money must be repaid to the Participant as soon as
practicable.
	 
	 	o)	 	the circumstances and manner in which the ratio of Matching Shares may be changed by
the Company;
	 
	 	p)	 	the Holding Period for the Matching Shares;
	 
	 	q)	 	that he is free at any time to withdraw any Partnership Shares from the Plan; and
	 
	 	r)	 	the extent to which Matching Shares will be Forfeited if Partnership Shares are
withdrawn before the third anniversary of the Acquisition Date.

Individual entitlement

	.9	 	If the Company receives completed Partnership and Matching
Share Agreements over an aggregate number of Shares which
exceeds the limit determined pursuant to Rule 6.8 (a) above in
respect of Partnership and Matching Share invitations issued
on any day, then the following steps shall be carried out
successively to the extent necessary to eliminate the excess:
	 
	 	 	the excess over £10 of the Partnership Share Money chosen by each applicant shall be
reduced pro rata to the extent necessary;
	 
	 	 	applications will be selected by lot, each based on Partnership Share Money of £10.

 

 

	.10	 	If after applying the provision of Rule 6.9 a) the number of Shares available is still insufficient to enable Partnership
Shares based on Partnership Share Monies of £10 to be made available to each Eligible Employee the Committee may, as an
alternative to selecting by lot as in 6.9 b) above, determine in its absolute discretion that no Partnership Shares, and
therefore no Matching Shares, will be offered.
	 
	.11	 	If the Committee so determines the provisions in Rule 6.9 may be modified in any manner as may be agreed in advance with
HM Revenue & Customs.
	 
	.12	 	Each Partnership and Matching Share Agreement shall be deemed to have been modified or withdrawn in accordance with the
application of the foregoing provisions and the Company shall complete each Partnership and Matching Share Agreement to
reflect any reduction in Partnership Share Money resulting therefrom.

Forfeiture

	.13	 	When the Committee resolves to make an offer of Partnership and Matching Shares, the Committee shall specify at that
time whether Matching Shares shall, subject to Rule 6.14 be Forfeited on a Participant ceasing to be a Group Employee in
accordance with Rules 6.15 and 6.16 and/or be Forfeited if the related Partnership Shares are withdrawn from the Plan
before the third anniversary of the Acquisition Date in accordance with Rule 6.16.
	 
	.14	 	Matching Shares shall never be Forfeited if the Participant is a Good Leaver.
	 
	.15	 	If the Committee determines that Matching Shares will be Forfeitable, it shall specify that the same Forfeiture
provisions will apply to all Shares in the relevant Award.
	 
	.16	 	If the Committee determines that Matching Shares will be Forfeitable it shall specify:

	 	a)	 	that the same Forfeiture provisions will apply to all Shares in the relevant Award;

	 	b)	i)	 	whether such Forfeiture will apply, subject to Rule 6.14 above, irrespective of
the reason for the Participant ceasing to be a Group Employee; or
	 
	 	 	ii)	 	the specific reasons for the Participant ceasing to be a Group Employee
which would result in Forfeiture;

	 	c)	 	whether the Forfeiture Period shall be the period of three years beginning with the
Appropriation Date or a shorter period (in which case it will specify the length of the
Forfeiture Period); and
	 
	 	d)	 	whether such Forfeiture will apply to the whole of an Award or to a percentage (in
which case it will specify the percentage (or percentages) where the percentage varies
according to how much of the Forfeiture Period has been completed) which may be
Forfeited).

 

 

Purchase of Partnership Shares and appropriation of Matching Shares (Accumulation Period)

	.17	 	Where there is an Accumulation Period the Partnership Shares to which
each Eligible Employee is entitled to have purchased on his behalf
under the Partnership and Matching Share Agreement must be acquired by
the Trustees on behalf of Participants on the Acquisition Date but
will be registered in the names of the Trustees.
	 
	.18	 	The number of Partnership Shares purchased by the Trustees on behalf
of a Participant shall be calculated by dividing the total Partnership
Share Money held for that Participant by the Acquisition Price.
	 
	.19	 	The Matching Shares to which each Eligible Employee is entitled under
Rule 6 will be appropriated to him on the Acquisition Date but will be
registered in the names of the Trustees.
	 
	.20	 	In the event that the Trustees acquire Shares some of which carry a
right of any kind which is not carried by every other such Share then
such Shares as carry such right shall so far as practicable be
apportioned pro rata according to the number of Shares appropriated to
each Participant on the Acquisition Date.
	 
	.21	 	As soon as practicable after any Partnership Shares have been
purchased by the Trustees on behalf of a Participant in accordance
with Rule 6.17 the Trustees shall give the Participant notice in
writing of the purchase specifying the number and description of
Partnership Shares purchased and the Acquisition Date.
	 
	.22	 	As soon as practicable after any Matching Shares have been
appropriated by the Trustees to a Participant in accordance with Rule
6.19 the Trustees shall give the Participant notice in writing of the
purchase specifying the number and description of Matching Shares
appropriated and the Appropriation Date.

Purchase of Partnership Shares and appropriation of Matching Shares (No Accumulation Period)

	.23	 	Where there is no Accumulation Period the Partnership Shares to which
each Eligible Employee is entitled to have purchased on his behalf
under the Partnership and Matching Share Agreement must be acquired by
the Trustees on behalf of Participants within 30 days after the
deduction is made but will be registered in the names of the Trustees.
	 
	.24	 	The number of Partnership Shares purchased by the Trustees on behalf
of a Participant shall be calculated by dividing the total Partnership
Share Money held for that Participant by the Reference Price.
	 
	.25	 	The Matching Shares to which each Eligible Employee is entitled under
Rule 6 will be appropriated to him on the Acquisition Date but will be
registered in the names of the Trustees.
	 
	.26	 	In the event that the Trustees acquire Shares some of which carry a
right of any kind which is not carried by every other such Share then
such Shares as carry such right shall so far as practicable be
apportioned pro rata according to the number of Shares appropriated to
each Participant on the Acquisition Date.

 

 

	.27	 	As soon as practicable after any Partnership Shares have been purchased by the Trustees on
behalf of a Participant in accordance with Rule 6.23 the Trustees shall give the Participant
notice in writing of the purchase specifying the number and description of Partnership Shares
purchased and the Acquisition Date for such Partnership Shares. As soon as practicable after
any Matching Shares have been appropriated by the Trustees to a Participant in accordance with
Rule 6.25 the Trustees shall give the Participant notice in writing of the purchase specifying
the number and description of Matching Shares appropriated, the Appropriation Date, the Market
Value and the Holding Period.

 

 

7 Dividend Shares

	.1	 	The Committee may determine in respect of all Participants or in
respect only of Participants who elect for Reinvestment that all cash
dividends or, as the case may be, cash dividends for which a
Participant Reinvestment election has been made (in the event that the
Company has determined that such elections may be made) in respect of
Plan Shares may be Reinvested provided always that the amount
Reinvested on behalf of a Participant must not exceed £1,500 in any
Year of Assessment.
	 
	.2	 	The number of Dividend Shares acquired by the Trustees on behalf of
each Participant or appropriated to him shall be determined by
reference to the Reference Price and those shares shall be held for
the Holding Period. In exercising their powers in relation to the
acquisition of Dividend Shares the Trustees shall treat Participants
fairly and equally.
	 
	.3	 	Any cash dividend amount received by the Trustees in excess of the
limit specified in Rule 7.1 above shall be paid over as soon as
practicable to the relevant Participant.
	 
	.4	 	Any amount of cash dividend in relation to a Participant which is not
Reinvested because it is not sufficient to acquire a Share or a
further Share may be retained by the Trustees and added to the next
cash dividend amount for Reinvestment provided that:

	 	a)	 	to the extent it is not Reinvested within three years of the dividend payment date;
	 
	 	b)	 	the Participant ceases to be employed by the Company and any of its Associated
Companies; or
	 
	 	c)	 	a plan termination notice issued in respect of this Plan

	 	 	it shall be paid over to him as soon as practicable.
	 
	.5	 	For the purpose of Rule 7.4 above, the earliest amount retained shall be deemed to be Reinvested first.

 

 

8 Rights and Restrictions relating to Plan Shares

	.1	 	Plan Shares shall, subject to the provisions of the Plan, receive identical treatment and rank pari passu in all respects
with all other shares of the same class and in particular in respect of each of the following, where applicable:-

	 	a)	 	the dividend payable (provided that Plan Shares which have been newly issued may
receive, in respect of dividends payable with respect to a period beginning before the
date on which such Plan Shares were issued, treatment which is less favourable than that
accorded to Shares issued before that date);
	 
	 	b)	 	repayment;
	 
	 	c)	 	the restrictions attaching to Shares; and
	 
	 	d)	 	any offer of substituted or additional shares, securities or rights of any
description in respect of Shares;

	 	 	but notwithstanding the foregoing, the provisions of Rule 8.5 shall apply as between the
Trustees and the Participants.
	 
	.2	 	While Plan Shares are held by the Trustees they will take
all reasonable steps in respect of any matter upon which
the Trustees are entitled to exercise any voting right that
may attach thereto, to seek and comply with any direction
from any of the Participants as to the exercise of such
voting rights and in the absence of such direction refrain
from voting.
	 
	.3	 	Harris Interactive Inc shall at its expense apply to any
Recognised Exchange on which the Shares are dealt for any shares subscribed by the Trustees to be admitted to dealing
on the Recognised Exchange.
	 
	.4	 	Subject to the provisions of these Rules the Trustees shall
deal with a Participant’s Plan Shares at all times in
accordance with the lawful directions given by or on behalf
of that Participant or any person in whom the beneficial
interest in his Plan shares is for the time being vested.

Obligations of Participants

	.5	 	Subject to Rule 8.6 below every Participant shall be bound,
by the terms of the Participation Agreement and/or
Partnership Share Agreement as appropriate, in contract
with the Company:

	 	a)	 	to permit his Plan Shares other than Partnership Shares to remain in the hands of the
Trustees throughout the Holding Period;
	 
	 	b)	 	not to assign, charge or otherwise dispose of the beneficial interest in his Plan
Shares during that period; and
	 
	 	c)	 	if he directs the Trustees to transfer the ownership of his Plan Shares (including a
transfer as a result of ceasing to be a Group Employee or ceasing to be employed by an
Associated Company) other than Dividend Shares to him at any time before the fifth
anniversary of their Acquisition Date, to authorise the Trustees as his agent to

 

 

	 	 	 	sell sufficient of his Plan Shares such that the proceeds of sale are sufficient to cover
any income tax and primary National Insurance contribution liability which arise as a
result of transfer. He further authorises the Trustees to transfer such proceeds of sale
to the Company as are required to reimburse the Company for the Pay As You Earn and
employee’s primary National Insurance liabilities arising as a result of the transfer of
share ownership.

	.6	 	Any obligation imposed on a Participant by virtue of Rule 8.5 above shall not prevent the
Participant from directing the Trustees:

	 	a)	 	to accept an offer for any of his Plan Shares (in this Rule referred to as “the
Original Shares”) if the acceptance will result in a new holding, as defined in Section
126(1)(b) of the Taxation of Chargeable Gains Act 1992, being equated with the Original
Shares for the purposes of Capital Gains Tax;
	 
	 	b)	 	to agree to a transaction affecting his Plan Shares or such of them as are of a
particular class, if the transaction would be entered into pursuant to a compromise,
agreement or scheme applicable to or affecting;

	 	i)	 	all the ordinary share capital of Harris Interactive Inc or, as the case
may be, all the shares of the class in question; or
	 
	 	ii)	 	all the shares, or shares of the class in question, which are held by a
class of shareholders identified otherwise than by reference to their employment of
their participating in an employee share scheme approved by HM Revenue & Customs
under Schedule 2 to the Act;

	 	c)	 	to accept an offer of cash, with or without other assets, for his Plan Shares if the
offer forms part of a general offer which is made to holders of shares of the same class
as his or of shares in Harris Interactive Inc and which is made in the first instance on a
condition such that if it is satisfied the person making the offer will have control of
Harris Interactive Inc, within the meaning of Section 416 of the Income and Corporation
Taxes Act 1988; or
	 
	 	d)	 	to accept an offer of a qualifying corporate bond, whether alone or with cash or
other assets or both, for his Plan Shares if the offer forms part of a general offer which
is made as mentioned in Rule 8.6 (c) above.

	.7	 	References in the Rules to a Participant’s Plan Shares shall be construed, after the time of
the Parent Company Reconstruction, as being or, as the case may be, as including references to
any New Shares and for the purposes of the Rules:

	 	a)	 	the Parent Company Reconstruction shall be treated as not involving a disposal of
            shares comprised in the Original Holding;
	 
	 	b)	 	the date on which any New Shares are to be treated as having been appropriated or
acquired to the Participant shall be the Appropriation Date or Acquisition Date of the
Corresponding Shares; and

 

 

	 	c)	 	the New Shares shall be held by the Trustees in accordance with the Plan as if they had
been so appropriated or acquired.

	.8	 	In the context of a New Holding any reference in this Rule to shares includes securities or
rights of any description which form part of the New Holding for the purposes of Chapter II of
Part IV of the Taxation of Chargeable Gains Act 1992.
	 
	.9	 	Where an issue of shares of any of the following descriptions (in respect of which a charge
to income tax arises) is made as part of the Parent Company Reconstruction, those shares shall
be treated as not forming part of a New Holding:

	 	a)	 	redeemable shares or securities issued as mentioned in section 209 (2)(c) of the
Income and Corporation Taxes Act 1988 (redeemable capital issued other than wholly for new
consideration);
	 
	 	b)	 	share capital issued in circumstances such that section 210(i) of that Act applies
(bonus issue following a repayment of capital); or
	 
	 	c)	 	share capital to which section 249 of that Act applies (stock dividends treated as
income).

	.10	 	In this Rule 8 and Clause 11 of the Trust Deed:

	 	a)	 	references to “the Parent Company Reconstruction” are to a transaction which
results in a New Holding being equated with an Original Holding for the purposes of
Capital Gains Tax, or which would result in a New Holding but for the fact that what
would have been the New Holding consists of or includes a qualifying corporate bond;
	 
	 	b)	 	references to an “Original Holding” are to a Participant’s Plan Shares immediately
prior to the Parent Company Reconstruction;
	 
	 	c)	 	references to a “New Holding” mean a new holding as defined in section 126 (i) (b)
of the Taxation of Chargeable Gains Act 1992 (reorganisation or reduction of share
capital);
	 
	 	d)	 	references to “New Shares” means shares comprised in a New Holding;
	 
	 	e)	 	references to “Corresponding Shares” means shares comprised in an Original Holding
in respect of which the New Shares are issued or which the New Shares otherwise
represent; and
	 
	 	f)	 	references to a “qualifying corporate bond” shall be construed in accordance with
section 117 of the Taxation of Chargeable Gains Act 1992.

 

 

9 Rights Issues and Variation of Share Capital

	.1	 	If instructed by Participants in respect of their Plan Shares the
Trustees may dispose of some of the rights under a rights issue
arising from those Shares to obtain enough funds to exercise the
remaining rights. The rights referred to are the rights to buy
additional shares or rights in the same company.
	 
	.2	 	Any shares or securities allotted as referred to in Rule 9.1 shall be
treated as Plan Shares identical to the shares in respect of which the
rights were conferred. They shall be treated as if they were awarded
to or acquired on behalf of the Participant under the Plan in the same
way and at the same time as those shares.
	 
	.3	 	Rule 9.2 does not apply:

	 	a)	 	to shares and securities allotted as the result of taking up a rights issue where the
funds to exercise those rights were obtained otherwise than by virtue of the Trustees
disposing of rights in accordance with this rule; or
	 
	 	b)	 	where the rights to a share attributed to Plan Shares are different from the rights
attributed to other ordinary shares of Harris Interactive Inc.

	.4	 	Any cash arising from the disposal of rights (except insofar as used to accept the offer)
shall be accounted for to the Participant subject to deduction of any income tax and national
insurance contributions.
	 
	.5	 	In the event of any variation of the share capital of Harris Interactive Inc including, but
without prejudice to the generality of the preceding words, any rights issue or open offer or
any consolidation, sub-division or reduction of capital, the Opening Value of any Shares
subject to any Partnership Share Agreement or Partnership and Matching Share Agreement in
relation to an Accumulation Period, may be adjusted by the Company in such manner as the
Company considers in its opinion, fair and reasonable and as agreed in advance with HM Revenue
& Customs. Such variation shall be deemed to be effective from the record date at which the
respective variation applied to other shares of the same class as the Shares.
	 
	 	 	The Committee shall take such steps as it considers necessary to notify Participants of any
adjustment made under this Rule 9.5 and to reissue any Partnership Share Agreement or
Partnership and Matching Share Agreement Certificate consequent upon such adjustment.
	 
	.6	 	The Committee shall take such steps as it considers necessary to notify Participants of any
adjustment made under Rule 9 and to reissue any Partnership Share Agreement or Partnership and
Matching Share Agreement consequent upon such adjustment.

 

 

10 Administration and Amendment

	.1	 	The Plan shall be administered by the Committee whose decision on all disputes shall be final save where the Rules require
the confirmation of the Auditors.
	 
	.2	 	The Committee may from time to time with the approval of the Trustees amend these Rules.
	 
	.3	 	The cost of establishing and operating the Plan shall be borne by the Group Companies in such proportions as the Committee
shall determine.
	 
	.4	 	Any notice or other communication under or in connection with the Plan may be given by the Company or Trustees personally,
electronically or by post, and to the Company or Trustees either personally, electronically or by post to the Secretary of
the Company or to the Trustees; items sent by post shall be pre-paid and shall be deemed to have been received 72 hours
after posting.

 

 

11 Miscellaneous

	.1	 	The rights and obligations of any individual under the terms of his office or employment
with any Constituent Company shall not be affected by his participation in the Plan or any
rights which he may have to participate therein, and an individual who participates therein
shall waive any and all rights to compensation or damages in consequence of the termination
of his office or employment for any reason whatsoever insofar as those rights arise or may
arise from his ceasing to participate in the Plan as a result of such termination.
	 
	.2	 	Any direction given to the Trustees in respect of a Participant’s Plan
Shares must be given in writing or electronically by or on behalf of
the Participant or any person in whom the beneficial interest in his
Shares is for the time being vested. Any notification, document,
payment or other communication to a Participant shall be delivered
personally or sent by post or electronically to the Participant at the
address which he shall give to the Company for the purpose, or failing
any such address to his last known place of abode.
	 
	.3	 	The Company will provide Participants with copies of the annual report
and accounts or appropriate summaries thereof and all notices and
circulars sent to the holders of Shares of the Parent Company.
	 
	.4	 	The plan shall be governed and construed in accordance with English
Law and any dispute concerning the operation of the Plan shall be
subject to the exclusive jurisdiction of the English courts.
	 
	.5	 	A Participant shall, by participating in the Plan, waive any and all
rights to compensation or damages in consequence of any loss of income
tax relief under the Act and/or any loss of relief or exemption from
liability to primary NIC or secondary NIC as a result of the Plan
losing approval under the Act and/or in consequence of the termination
of his office or employment and/or in consequence of the operation of
the terms of this Plan.
	 
	.6	 	The existence of any Award and/or any Partnership Share Agreement
shall not affect in any way the right or power of Harris Interactive
Inc or its shareholders to make or authorise any or all adjustments,
recapitalisation, reorganisations, reductions of capital, purchase or
redemption of its own shares in accordance with Company law of the
United States or any relevant US State or other changes in the capital
structure of the Parent Company or any merger or consolidation of the
Parent Company, or any issue of bonds, debentures, preferred or prior
preference stock ahead of or convertible into, or otherwise affecting
the Shares or rights thereof, or the dissolution or liquidation of the
Parent Company, or any sale or transfer or reorganisation of all or
any part of its assets or business (including any sale or transfer or
reorganisation which affects the Company or any Group Company, or any
other corporate act or proceeding, whether of a similar character or
otherwise.
	 
	.7	 	Neither the making of an Award nor any benefit which may accrue to a
Participant by reason of an Award shall form part of that
Participant’s pensionable remuneration for the purposes of any pension
scheme or similar arrangement which may be operated by any Group
Company.

 

 

	.8	 	It is a condition of participation in this Plan that a Participant
agree to the holding of information about him by the Company and that
he authorise the Company and its agents and advisers to use such
information according to these Rules for the purposes of this Plan.
It is a further condition of participation in this Plan that each
Participant agrees that data concerning his participation may be
processed by agents of the Company wherever located and where
necessary transmitted outside the European Union and European Economic
Area.
	 
	.9	 	The benefit of Rules 11.1, 11.5 and 11.6 is given to the Company for
itself and as trustee and agent of each Group Company. To the extent
that this Rule benefits any company which is not a party to this Plan,
the benefit shall be held on trust and as agents by the Company for
such company and the Company may, at its discretion, assign the
benefit of such Rules to such company.
	 
	.10	 	The signing of any agreement by a Participant under this Plan may be
done by hand or in electronic form and electronic delivery of the same
shall constitute a return of the relevant agreement.

 

 

12 Limits on Shares available under the Plan

	.1	 	The number of Shares issued by the Parent Company to the Trustees for
appropriation by them under the provisions of this Plan and so
appropriated shall not when aggregated with the number of Shares which
have been issued or which remain issuable pursuant to rights granted
under other employees’ share schemes exceed 49.9% of the Ordinary
Share Capital in issue on the last Dealing Day before the date of
issue provided that the Committee shall adjust the aggregate number of
Shares issued to reflect any subsequent variation of share capital of
the Parent Company in such manner as the Auditors confirm in writing
to be, in their opinion, fair and reasonable.

 

 

13 Termination

.1 The Plan shall terminate at any earlier time by determination of the Committee at its sole
discretion issuing a Termination Notice. Termination of the Plan shall be without prejudice to the
subsisting rights of Participants.

.2 A copy of the Termination Notice must be given, as soon as reasonably possible, to Her Majesty’s
Revenue and Customs, the Trustees, each Participant on whose behalf the Trustees hold Plan Shares
and each Employee who has entered into a Partnership Share Agreement before the Termination Notice
was issued.EX-4.4

 

Exhibit 4.4

Harris Interactive UK Limited

UK Share Incentive Plan (“the Plan”):

Partnership and Matching Share Agreement

This agreement is between:

          Participant (“the Participant”)

Name:

Home Address:
 

Payroll
Number

	 	 	 	 	 	 	 
	Company (“the Company”)	 	Trustees (“the Trustees”)
	Name:
	 	Harris Interactive UK Ltd	 	Name:	 	Equiniti Share Plan Trustees Ltd
	Registered Address:
	 	Watermans Park	 	Registered Address:	 	Aspect House
	 
	 	High Street	 	 	 	Spencer Road
	 
	 	Brentford	 	 	 	Lancing
	 
	 	TW8 0BB	 	 	 	West Sussex
	Registered Number:
	 	2802862	 	 	 	BN99 6DA
	 
	 	 	 	Registered Number:	 	3925002

This Partnership and Matching Share Agreement sets out the terms on which the Participant agrees to
buy shares under the terms of the Plan and is subject to the Rules of the Plan. The definitions in
the Plan Rules apply to this agreement.

NOTICE TO PARTICIPANT ABOUT POSSIBLE EFFECT ON BENEFITS

Deductions from your pay to buy Partnership Shares under this agreement may affect your entitlement
to, or the level of, some contributory social security benefits, statutory maternity pay and
statutory sick pay. They may also have a similar effect in respect of any contributory social
security benefits paid to your spouse or civil partner. With this agreement you should have been
given information on the effect of deductions from your pay to buy partnership shares on
entitlement to social security benefits, statutory sick pay and statutory maternity pay. The
effect is particularly significant if your earnings are brought below the lower earnings limit for
National Insurance purposes, and is explained in the information: it is therefore important that
you read it. If you have not been given a copy, ask your employer for it. Otherwise a copy may be
obtained from any office of HM Revenue & Customs, the Department for Work and Pensions or, in
Northern Ireland, the Department for Social Development. You should take the information you have
been given into account in deciding whether to buy Partnership Shares.

PARTICIPANT

	1.	 	I agree to allow my employer to deduct the amount shown below from my salary each month to
buy shares in Harris Interactive Inc under the Plan. I have read the terms and conditions
overleaf and agree to be bound by the Trust Deed and Rules of the Plan.

Amount of contribution per month (The minimum amount you can contribute is £10 per month up to a
maximum of £125. Please note that your total contributions cannot exceed 10% of your cumulative
salary at any point during the tax year and they will automatically be scaled down to an amount
equal to this if necessary).

£          

	2.	 	I agree that these deductions will be used to buy Partnership Shares in Harris Interactive
Inc.
	 
	3.	 	I agree that my employing company will pay my Deductions to the Trustees as soon as possible
and the Trustees will hold my Deductions in an account complying with paragraph 49(3) of the
Schedule 2, ITEPA 2003 for 6 months from the start date of the relevant Accumulation Period,
The accumulated Deductions will be used to purchase Shares in Harris Interactive Inc for me at
the end of each Accumulation Period.
	 
	4.	 	I agree to accept Matching Shares in Harris Interactive Inc awarded to me under the Plan and
leave them in the hands of the Trustees, and not to assign, charge or otherwise dispose of my
beneficial interest in the shares for the whole of the Holding Period of 3 years.

PLEASE USE BLOCK CAPITALS AND READ THE WHOLE OF THE AGREEMENT BEFORE SIGNING

40

 

	5.	 	I elect that all dividends paid on my shares will be used by the Trustees to buy more shares
in Harris Interactive Inc for me according to the rules of the Plan* and leave them in the
hands of the Trustees, and not to assign, charge or otherwise dispose of my beneficial
interest in the shares for the whole of the Holding Period of 3 years.

 

	*	 	If you do not want your dividends to be reinvested please delete paragraph 5 above.

	6.	 	I understand that shares are traded on the NASDAQ and may fall in value as well as rise and
that changes in the exchange rates can decrease the local value of my Shares and dividends (if
any) and I accept that neither Harris Interactive Inc nor any other Group Company shall have
any liability for any losses suffered as a result of these risks materialising.
	 
	7.	 	I have read this Partnership and Matching Share Agreement, including the Schedule attached
and agree to be bound by it, the Trust Deed and the Rules of the Plan.

COMPANY

	8.	 	The Company agrees to arrange for shares in Harris Interactive Inc to be bought for me,
according to the rules of the Plan.
	 
	9.	 	The Company agrees to provide me with three (3) Matching Share for every seventeen (17)
Partnership Shares which I am entitled to keep. I also understand that these Matching Shares
must be withdrawn from the Plan in the event that I cease to be a Group Employee.
	 
	10.	 	The Company undertakes to notify me of any restriction on the amounts that may be deducted
from my Salary and the number of Partnership Shares available to buy.

TRUSTEES

	11.	 	The Trustees agree to keep my Salary deductions in a bank account until they are used to buy shares in Harris Interactive Inc for me.

	 	 	 	 	 	 	 
	Signature:

	 	 	 	 	 	Date: ___/ ___/___
	 

	 	 

	 	 	 	 

PLEASE USE BLOCK CAPITALS AND READ THE WHOLE OF THE AGREEMENT BEFORE SIGNING

41

 

Schedule

Rights and Obligations

	1.	 	Participation in the Plan does not affect the Participant’s rights, entitlements or
obligations under his contract of employment, and does not given him any rights or additional
rights to compensation or damages if his employment ceases.
	 
	2.	 	Information held about the Participant may be held by his employing company (or any agent or
administrator acting on its behalf) and the Participant consents to such persons using or
sending data about him in order to provide him with services or improved services under the
Plan and to any such data being processed by agents of the Company (wherever located) and,
where necessary, may be transmitted outside of the European Union and European Economic Area.
	 
	3.	 	The Participant agrees to allow the Trustees to sell some of his Shares to pay any
employment income tax and employee’s national insurance contributions due under PAYE from the
Plan trustees in respect of his Shares unless the Participant provides sufficient funds in
advance to pay these amounts.
	 
	4.	 	The Participant can at any time withdraw from this Partnership and Matching Share Agreement
by delivering a completed Withdrawal Notice. The Withdrawal Notice or other written
instruction will be actioned as soon after receipt as is reasonable considering payroll
cut-off dates. Any Partnership Shares Money not already used to purchase Partnership Shares
(less any income tax and employees’ national insurance contributions due) will be returned to
the Participant. Income tax and employees’ national insurance contributions may fall due when
the Participant withdraws his Partnership Shares from the Plan.
	 
	5.	 	The Participant may stop his Deductions at any time. However, the Participant must deliver a
completed Change of Contribution Notice in good time and prior to the applicable payroll
cut-off date. The Participant will then be able to re-start his Deductions by delivering a
later Change of Contribution Notice. The Participant can deliver a Change of Contribution
Notice to re-start Deductions no more than once in any Accumulation Period. The Participant
will not be allowed to make up any deductions not made in the intervening period.
	 
	6.	 	In addition to the Participant having the right to stop his Deductions at any time, the
Participant is allowed to vary his Deductions once during each Accumulation Period by
delivering a Change of Contribution Notice to vary his contributions on the same terms as
specified at 5 above.
	 
	7.	 	The Company is making 50,000 Partnership Shares available during each Accumulation Period.
The Participant agrees that the Deductions from his Salary and the numbers of Shares that he
receives may be scaled down if this limit on the number of Shares is exceeded. The Company
may change this limit for subsequent Accumulation Periods.
	 
	8.	 	The Participant agrees that any Deductions not used to buy Shares will be carried forward and
added to the next Deduction or Accumulation Period unless the Plan is discontinued or he
withdraws from the Plan, in which case the Company will return to the Participant any
Deductions that have not yet been applied to purchase Shares as soon as practicable.
	 
	9.	 	If during any Accumulation Period the Participant cease to be a Group Employee no further
Deductions shall be made, and the Participant may ask for any Deductions not used to purchase
Shares under the terms of the Plan (less any income tax or employees’ national insurance
contributions due) to be refunded to him as soon as possible. The Participant will not
normally be able to purchase further Shares under the Plan.
	 
	10.	 	Shares carry the right to vote at general meetings. This is the Participant’s right but as
the Shares will be held in the Trustee’s name, the Participant needs to instruct the Trustees
how to vote on his behalf if he wants them to do so.
	 
	11.	 	If there is a rights issue The Participant agrees to allow the Trustees to sell some of the
rights attached to his plan, in order to fund the exercise of the rights attached to other
Plan Shares.
	 
	12.	 	The ratio of Matching Shares to Partnership shares is three (3) Matching Shares for every
seventeen (17) Partnership Shares and may be varied by the Company.
	 
	13.	 	If the ratio varies, the Company will notify the Participant before the Partnership Shares
are acquired.

Accumulation Periods

	14.	 	The First Accumulation Period the period specified in this Agreement.
	 
	15.	 	The First Accumulation Period will start on 1 January 2008. Subsequent Accumulation Periods
will be 6 month periods starting on each 1 January and 1 July date until the Company issues a
Termination Notice or the Participant withdraws from the Plan.

Deductions from Salary held by the Participant’s employer

	16.	 	No interest will accrue on Deductions held by the Participant’s employer or the Trustee as
the Deductions will not be held on an interest bearing account. If on a later date the
Deductions are held on an interest bearing account, the Trustee will pay the interest to the
Participant.

Partnership Shares

	17.	 	Partnership Shares will be held by the Trust established in connection with the Plan on the
Participant’s behalf.

Monthly Deductions

	18.	 	The monthly Deductions shall be an amount of the Participant’s pre-tax salary which will be
deducted during each payroll period and applied to purchase Shares under the terms of the
Plan. This amount shall not be less than £10, and shall not exceed £125 for any Participant
or the lower limit specified in the Invitation (provided that the Company may change these
limits as permitted by the relevant tax legislation and will notify the Participant of the
changes for any subsequent Accumulation Periods). The permitted monthly Deductions shall
remain in effect for the whole of the Agreement until the Participant issues a Variation of
Contributions Notice or withdraws from the Plan.

Purchase Date

	19.	 	Shares under the Plan will be purchased for the Participant within 30 days of the end of the
Accumulation Period at the specified Acquisition Price.

Dividends

	20.	 	Cash Dividends will be used to buy more shares (Dividend Shares) for the Participant.
	 
	21.	 	Any amount over £1,500 in each tax year will be paid to the Participant.
	 
	22.	 	Any amount below £1,500 not used to buy shares will be carried forward and added to the next
cash dividend to be reinvested.

PLEASE USE BLOCK CAPITALS AND READ THE WHOLE OF THE AGREEMENT BEFORE SIGNING

42

 

	23.	 	The Participant may elect that any dividends will be paid directly into the bank account into
which the Company pays his salary and that the Company will provide these details to the
Trustee before each dividend payment is made. The Participant understands that the Trustees
will only use those details for that sole purpose.

Acquisition Price

	24.	 	The Acquisition price for the Shares shall be the lesser of the value of the Shares on the
first day of the Accumulation Period and on the Acquisition Date.
	 
	25.	 	The money saved will need to be converted into US Dollars using the Bank of England exchange
rate for the Acquisition Date.

Term of Agreement

	26.	 	The Company intends to continue to operate the Plan for the foreseeable future but reserves
the right to change, amend or limit the terms on which Partnership Shares and/or Matching
Shares are offered or to end the current offer under the Plan at any time, subject to the
Trust Deed and Plan Rules. In such an event, this agreement shall end with effect from the
date on which the Company (on behalf of the Trustees as appropriate) shall specify in its
notice (“a Termination Notice”) to Participants that no further deductions from salary shall
be made.

Shares

	27.	 	In this Partnership and Matching Share Agreement, the terms Shares (and so Matching and
Partnership Shares) refer to common stock in Harris Interactive Inc.

PLEASE USE BLOCK CAPITALS AND READ THE WHOLE OF THE AGREEMENT BEFORE SIGNING

43

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