Document:

EX-4.3

 

Exhibit 4.3

RULES OF THE NEW INTERCONTINENTAL HOTELS GROUP

PERFORMANCE RESTRICTED SHARE PLAN

	 	 	 	 	 
	 

	 	Shareholders’ Approval:
	 	15 June 2005
	 
	 	 	 	 
	 

	 	Directors’ Adoption:
	 	15 June 2005
	 
	 	 	 	 
	 

	 	Expiry
	 	15 June 2015

Linklaters

One Silk Street

London EC2Y 8HQ

Telephone (44-20) 7456 2000

Facsimile (44-20) 7456 2222

Ref Anne Croft

 

 

Rules of the New InterContinental Hotels Group Performance Restricted Share

Plan

	1	 	Meaning of Words Used
	 
	1.1	 	“Annual Salary” means basic annual salary excluding all payments additional to
basic salary (for example mortgage support allowance, expatriate allowance etc.);
	 
	 	 	“Award” means a Conditional Award, an Option or a conditional award of cash under Rule 3.
	 
	 	 	“Award Date” means the date the Committee makes the determination under Rule 3.2.
	 
	 	 	“Committee” means the Board of Directors of the Company or a duly authorised committee.
	 
	 	 	“Company” means New InterContinental Hotels Group PLC (with registered number 5134420).
	 
	 	 	“Conditional Award” means a conditional award of Shares.
	 
	 	 	“Employee” means, except for the purposes of Rule 11, any employee or executive director or
former employee or former executive director of any Group Company.
	 
	 	 	“Group Company” means:

	 	(i)	 	the Company;
	 
	 	(ii)	 	a Subsidiary; or
	 
	 	(iii)	 	any other company which is associated with the Company and is so designated by
the Committee.

	 	 	“Lapse Date” is defined in Rule 9.4.
	 
	 	 	“Option” means a right to acquire Shares at the Option Price.
	 
	 	 	“Option Plan” means the New InterContinental Hotels Group Executive Share Option Plan as
amended from time to time.
	 
	 	 	“Option Price” means the amount payable for the Shares comprised in an Option, which will be
£1, irrespective of the number of Shares acquired, unless the Committee decides otherwise.
	 
	 	 	“Participant” means an Employee to whom the Committee has made an Award, and includes his
personal representatives where appropriate.
	 
	 	 	“Performance Condition” means the condition specified in relation to an Award.
	 
	 	 	“Performance Period” means the period specified for which the Performance Condition is to be
satisfied.
	 
	 	 	“Plan” means the New InterContinental Hotels Group Performance Restricted Share Plan
constituted by this document as amended from time to time.

 

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	 	 	“Reconstruction or Takeover” means any takeover, merger or internal reconstruction, however
effected, including a reverse takeover, partial offer, reorganisation or scheme of
arrangement sanctioned by the court.
	 
	 	 	“Rules” means these rules as amended from time to time.
	 
	 	 	“STDIP” means the New InterContinental Hotels Group Short Term Deferred Incentive Plan as
amended from time to time.
	 
	 	 	“SIPs” means the New InterContinental Hotels Group Share Incentive Plan and the Britvic
Share Incentive Plan as amended from time to time.
	 
	 	 	“Shares” means ordinary shares in the Company, and includes any shares representing them
following a Reconstruction or Takeover.
	 
	 	 	“Subsidiary” means a company which is a subsidiary of the Company within the meaning of
section 736 of the Companies Act 1985.
	 
	 	 	“Vested Shares” means in relation to a Conditional Award, the number of Shares to be
transferred to a Participant, and in relation to an Option, the number of Shares which may
be acquired by a Participant on the exercise of the Option, as determined under Rule 7.1;
and “Vest” shall be construed accordingly.
	 
	 	 	“Vesting Date” is defined in Rule 3.5.
	 
	1.2	 	References in the Plan to any statutory provisions are to those provisions as
amended, extended or re-enacted from time to time and include any regulations made under them;
and, unless the context otherwise requires, words in the singular include the plural (and vice
versa) and words imputing either gender include both genders.
	 
	1.3	 	Headings may be ignored in construing the Rules.
	 
	2	 	Operation of the Plan
	 
	 	 	The Plan shall be operated and administered by the Company in accordance with the
directions of the Committee.
	 
	3	 	Awards
	 
	3.1	 	The Committee may select any one or more Employees for participation in the Plan
and grant Awards to them at any time before 15 June 2015.
	 
	3.2	 	When the Committee grants an Award it shall determine the terms of the Award in its
absolute discretion, including:

	 	3.2.1	 	whether the Award is an Option, a Conditional Award or cash;
	 
	 	3.2.2	 	the Performance Period;
	 
	 	3.2.3	 	the Performance Condition;
	 
	 	3.2.4	 	the maximum number of Shares subject to the Award;
	 
	 	3.2.5	 	the Vesting Date;
	 
	 	3.2.6	 	if the Award is an Option, the Option Price.

 

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	3.3	 	The Company shall send an award certificate to the Participant specifying the terms
of the Award determined under Rule 3.2.
	 
	3.4	 	Subject to Rules 3.5 and 3.6, “Vesting Date” means the business day after the
announcement of the Company’s results for the last financial year of the Performance Period.
	 
	3.5	 	The Company may decide in exceptional circumstances that the Vesting Date will be a
date within seven days of the announcement of the Company’s results for the last financial
year of the Performance Period.
	 
	3.6	 	In the event that the acquisition or disposal of Shares is not permitted by law or
by any restrictions imposed pursuant to the provisions of any dealing restrictions imposed by
the authorities in any relevant jurisdiction, the Vesting Date will be deferred until the
ending of such restrictions unless the Company decides otherwise.
	 
	4	 	Individual Limits
	 
	4.1	 	The conditions in Rules 4.2 and 4.3 must both be satisfied.
	 
	4.2	 	Subject to Rules 4.5 and 4.6, an Award must not be made to an Employee if it would
at the proposed Award Date cause the aggregate of the market value of Shares or the amount of
cash over which Awards have been made in any financial year to exceed:

	 	(i)	 	in the case of an Employee who is a director of the Company, 3 times his Annual
Salary as at the Award Date; and
	 
	 	(ii)	 	in the case of any other Employee, 4 times his Annual Salary as at the Award
Date.

	4.3	 	Subject to Rules 4.5 and 4.6 in any financial year no Employee shall be made a
Award which would at the proposed Award Date cause the aggregate of:

	 	(i)	 	20% of the market value of the Shares over which an option is granted under the
Option Plan; and
	 
	 	(ii)	 	33% of the market value of the Shares or amount of cash over which an Award is
made under the Plan

	 	 	to exceed 130% of the Employee’s Annual Salary as at the Award Date.
	 
	4.4	 	For the purpose of Rule 4.3 the market value of a Share shall be calculated as follows:

	 	(i)	 	in respect of options granted under the Option Plan, the market value shall be
the option price of the relevant Shares on the date when each option was granted; and
	 
	 	(ii)	 	in respect of Awards under the Plan, the market value shall be the middle
market quotation on the Business Day immediately preceding the Award Date.

	4.5	 	The limits in this Rule 4 may be exceeded if the Directors determine that
exceptional circumstances make it desirable that Awards should be granted in excess of those
limits.
	 
	4.6	 	No account shall be taken of options under the Option Plan or Awards which have
been released or have lapsed without being exercised.
	 
	5	 	Plan Limits
	 
	5.1	 	10 per cent. 10 year limit

 

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	 	 	The number of Shares which may be allocated under the Plan on any day must not exceed 10 per
cent. of the ordinary share capital of the Company in issue immediately before that day,
when added to the total number of Shares which have been allocated in the previous 10 years
under the Plan and any other employee share plan operated by the Company.
	 
	5.2	 	5 per cent. 10 year limit
	 
	 	 	The number of Shares which may be allocated under the Plan on any day must not exceed 5 per
cent. of the ordinary share capital of the Company in issue immediately before that day when
added to the total number of Shares which have been allocated in the previous 10 years under
the Plan and any other discretionary share plan operated by the Company.
	 
	5.3	 	1.5 per cent. 1 year limit
	 
	 	 	The number of Shares which may be allocated under the Plan on any day must not exceed 1.5
per cent. of the ordinary share capital of the Company in issue immediately before that day
when added to the total number of Shares which have been allocated in the previous 12 months
under the Plan, the STDIP and the Option Plan.
	 
	5.4	 	Exclusions
	 
	 	 	Where the right to acquire Shares is released or lapses without being exercised, the Shares
concerned are ignored when calculating the limits in this Rule 5.

	 	5.4.1	 	When calculating the limits in Rules 5.1, 5.2 and 5.3, Shares awarded as
partnership shares under the SIPs are also ignored.

	5.5	 	Meaning of allocate
	 
	 	 	“Allocate” means granting an option or other right to acquire unissued Shares, or if there
is no such grant, the issue and allotment of Shares, and except in the case of the limit in
5.3 includes grants in exchange for rights granted by InterContinental Hotels Group PLC
(with registered number 4551528).
	 
	6	 	Ceasing to be an Employee prior to the Vesting Date
	 
	6.1	 	If a Participant dies before the Vesting Date, the Company will as soon as
practicable determine the number of Vested Shares relating to his Awards, taking account of
the proportion of the Performance Period that has elapsed, and the extent to which the
Performance Condition has been satisfied. The Company will procure the transfer of the number
of Vested Shares in a Conditional Award or pay cash to the Participant’s personal
representatives. An Option may be exercised by the Participant’s personal representatives over
the Vested Shares in the period of six months from the date of death, and will lapse if not
exercised.
	 
	6.2	 	If a Participant’s office or employment with any Group Company terminates before
the Vesting Date for any of the reasons specified in (i) to (vii) below, the number of Vested
Shares relating to his Awards shall be the number determined under Rule 7 after the end of the
Performance Period, reduced, if the Participant’s notice period or severance period ended
before the end of the Performance Period, to reflect the proportion of the Performance Period
that had elapsed on the date the Participant’s contractual notice period or severance period
ended (whether or not this has been paid in lieu). The reasons are:

 

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	 	(i)	 	ill-health, injury, disability;
	 
	 	(ii)	 	redundancy;
	 
	 	(iii)	 	retirement in accordance with the terms of a Participant’s contract of employment;
	 
	 	(iv)	 	early retirement by agreement with the Participant’s employer;
	 
	 	(v)	 	the Participant’s employing company being transferred to a person which is not
a Group Company;
	 
	 	(vi)	 	a transfer of the undertaking, or part of the undertaking, in which the
Participant works to a person which is not a Group Company; or
	 
	 	(vii)	 	any other reason determined by the Company.

	 	 	The Company will procure the transfer of the Vested Shares in a Conditional Award or pay
cash to the Participant on the Vesting Date. An Option may be exercised by the Participant
over the Vested Shares in the period of six months from the Vesting Date, and will lapse if
not exercised.
	 
	6.3	 	If a Participant’s office or employment with any Group Company terminates before
the Vesting Date for any reason not included in Rule 6.2, he shall cease to be a Participant
in the Plan and shall not be eligible to receive any Shares or cash in respect of his Awards
unless the Company decides otherwise within a reasonable time of the termination. If the
termination is by reason of gross misconduct, he shall not be eligible to receive any Shares
or cash in respect of any Awards in any circumstances.
	 
	6.4	 	For the purposes of Rule 6, a Participant’s office or employment with a Group
Company will not be treated as having terminated until the Participant ceases to be employed
by any Group Company and his contractual notice period or severance period has expired
(whether or not this has been paid in lieu).
	 
	6.5	 	In the event of a Reconstruction or Takeover before the Vesting Date, the Company
will as soon as practicable determine the number of Vested Shares or cash in relation to all
Awards, taking account of the proportion of the Performance Period that has elapsed, and the
degree to which the Performance Condition has been satisfied. The Company will procure the
immediate transfer to each Participant of the Vested Shares in a Conditional Award or payment
of the cash so determined. An Option may be exercised by the Participant over the number of
Vested Shares in the period of six months from the date of the Reconstruction or Takeover, and
will lapse if it has not been exercised. However, in the case of a Reconstruction or Takeover
involving the exchange of Shares for shares in another company, or in more than one other
company, the Committee may determine that no Shares or cash should be transferred, and that
instead the Participant’s right to the Shares comprised in an Award should be replaced by a
right to the appropriate number of shares in that other company or companies.
	 
	6.6	 	The Committee has discretion to take such action as it may think appropriate if
other events happen which may have an effect on Awards.

 

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	7	 	Determination of Awards
	 
	7.1	 	As soon as reasonably practicable after the end of the Performance Period, there
shall be calculated:

	 	7.1.1	 	the extent to which the Performance Condition specified in the invitation
has been satisfied; and
	 
	 	7.1.2	 	the number of Shares which Vest in respect of each Award, or the amount of
cash to be awarded to each Participant.

	7.2	 	In the case of an Option:

	 	7.2.1	 	the Company will notify the Participant of the number of Vested Shares; and
	 
	 	7.2.2	 	the balance of the Option lapses forthwith.

	8	 	Vesting of Conditional Awards
	 
	8.1	 	The Company shall transfer or procure the transfer of the Vested Shares or cash to
each Participant on the Vesting Date, subject to Rule 10.4.
	 
	8.2	 	Each relevant Group Company will reimburse the Company for any costs incurred in
connection with Conditional Awards to Participants who are employed by it.
	 
	8.3	 	The Company will notify each Participant of the number of Vested Shares transferred
to him in respect of his Conditional Award and the amount of any tax and social security
contributions withheld under Rule 10.4.
	 
	9	 	Exercise of Options
	 
	9.1	 	Except as otherwise provided in Rule 6, a Participant may exercise an Option to the
extent that it has Vested at any time from the Vesting Date until the Lapse Date.
	 
	9.2	 	In order to exercise an Option, the Participant must deliver to the Company a
notice of exercise in the prescribed form together with payment of the Option Price. The date
on which these are received by the Company is the Option exercise date.
	 
	9.3	 	Subject to Rule 10.4, as soon as practicable following the Option exercise date,
the Company will procure the transfer of the appropriate number of Shares to the participant.
	 
	9.4	 	The Lapse Date in relation to an Option is the earliest of the following dates:

	 	9.4.1	 	the second anniversary of the Vesting Date;
	 
	 	9.4.2	 	subject to Rule 6, the date on which the Participant’s employment with any
Group Company ends;
	 
	 	9.4.3	 	any date specified in Rule 6.

	10	 	General
	 
	10.1	 	Any notice or other document given to any Employee or Participant pursuant to the
Plan shall be delivered to him or sent by post to him at his home address according to the
records of his employing company or such other address as may appear to the Company to be
appropriate. Notices or other documents sent by post shall be deemed to have been given 5 days
following the date of posting.

 

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	10.2	 	The decision of the Committee in any question of interpretation of the Rules or
any dispute relating to or connected with this Plan shall be final and conclusive.
	 
	10.3	 	The costs of introducing, operating and administering the Plan shall be borne by
the Company and the relevant Group Companies.
	 
	10.4	 	The Company, any relevant Group Company and/or any relevant trustee may withhold
any amounts or make such arrangements as are necessary to meet any liability to taxation and
social security contributions in respect of the Shares or cash awarded under the Plan. The
arrangements may include the sale of some or all of any Shares subject to an Award on behalf
of the Participant, and the use of the proceeds to discharge the liability.
	 
	10.5	 	The Company shall have power from time to time to make or vary regulations for the
administration and operation of the Plan provided that they are not inconsistent with these
Rules.
	 
	11	 	Terms of Employment
	 
	11.1	 	For the purposes of this Rule 11, “Employee” means any Participant, any Employee
(within the meaning of Rule 1) or any other person.
	 
	11.2	 	This Rule 11 applies:

	 	11.2.1	 	whether the Company has full discretion in the operation of the Plan, or
whether the Company could be regarded as being subject to any obligations in the
operation of the Plan;
	 
	 	11.2.2	 	during an Employee’s employment or employment relationship; and
	 
	 	11.2.3	 	after the termination of an Employee’s employment or employment
relationship, whether the termination is lawful or unlawful.

	11.3	 	Nothing in the Rules or the operation of the Plan forms part of the contract of
employment or employment relationship of an Employee. The rights and obligations of an
Employee are separate from, and are not affected by, the Plan. Participation in the Plan does
not create any right to, or expectation of, continued employment or a continued employment
relationship.
	 
	11.4	 	The grant of Awards on a particular basis in any year does not create any right to
or expectation of the grant of Awards on the same basis, or at all, in any future year.
	 
	11.5	 	No Employee is entitled to participate in the Plan, or be considered for
participation in it, at a particular level or at all. Participation in one operation of the
Plan does not imply any right to participate, or to be considered for participation in any
later operation of the Plan.
	 
	11.6	 	Without prejudice to an Employee’s right to receive the Shares comprised in an
Award subject to and in accordance with the express terms of the Rules and the Performance
Condition, no Employee has any rights in respect of the exercise or omission to exercise any
discretion, or the making or omission to make any decision, relating to the Award. Any and all
discretions, decisions or omissions relating to the Award may operate to the disadvantage of
the Employee, even if this could be regarded as capricious or unreasonable, or could be
regarded as in breach of any implied term between the Employee and his employer, including any
implied duty of trust and confidence. Any such implied term is excluded and overridden by this
Rule 11.

 

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	11.7	 	  No Employee has any right to compensation for any loss in relation to the Plan,
including:

	 	11.7.1	 	any loss or reduction of any rights or expectations under the Plan in any
circumstances or for any reason (including lawful or unlawful termination of employment
or the employment relationship);
	 
	 	11.7.2	 	any exercise of a discretion or a decision taken in relation to an Award
or to the Plan, or any failure to exercise a discretion or take a decision;
	 
	 	11.7.3	 	the operation, suspension, termination or amendment of the Plan.

	11.8	 	Participation in the Plan is permitted only on the basis that the Participant
accepts all the provisions of the Rules, including in particular this Rule 11. By
participating in the Plan, an Employee waives all rights under the Plan, other than the right
to receive Shares subject to and in accordance with the express terms of the Rules and the
Performance Condition, in consideration for, and as a condition of, the grant of an Award
under the Plan.
	 
	11.9	 	Nothing in this Plan confers any benefit, right or expectation on a person who is
not an Employee. No such third party has any rights under the Contracts (Rights of Third
Parties) Act 1999 to enforce any term of this Plan. This does not affect any other right or
remedy of a third party which may exist.
	 
	11.10	 	Each of the provisions of this Rule 11 is entirely separate and independent from
each of the other provisions. If any provision is found to be invalid then it will be deemed
never to have been part of these Rules and to the extent that it is possible to do so, this
will not affect the validity or enforceability of any of the remaining provisions.
	 
	12	 	Personal Data
	 
	12.1	 	By participating in the Plan the Participant consents to the holding and
processing of personal data provided by the Participant to the Company for all purposes
relating to the operation of the Plan. These include, but are not limited to:

	 	12.1.1	 	administering and maintaining Participant records;
	 
	 	12.1.2	 	providing information to trustees of any employee benefit trust,
registrars, brokers or third party administrators of the Plan;
	 
	 	12.1.3	 	providing information to future purchasers of the Company or the business
in which the Participant works;
	 
	 	12.1.4	 	transferring information about the Participant to a country or territory
outside the European Economic Area.

	13	 	 Changes to and termination of the Plan
	 
	13.1	 	Subject as provided in this Rule, the Committee may, in its discretion, amend the
Rules or any part of the Plan as it considers appropriate. Variations may affect the terms of
Awards which have already been made.

	 
	13.2	 	No amendment shall be made which would have the effect of abrogating or altering
adversely in any material respect any of the subsisting rights of Participants in relation to
Awards, except with the consent of the majority of the Participants affected by the proposed
amendment.

 

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	13.3	 	The Committee may amend, vary or add to the provisions of the Plan as it considers
necessary or desirable to take account of relevant overseas taxation, securities or exchange
control laws, provided that the benefits granted to such Participants are not overall more
favourable than the benefits granted to other Participants.
	 
	13.4	 	Except as provided in Rule 13.5, the prior approval of the Company in general
meeting is required for any proposed change to the Rules to the advantage of present or future
Participants which relates to:

	 	13.4.1	 	the persons to or for whom Awards may be made;
	 
	 	13.4.2	 	the limitations on the number of Shares which may be allocated under the Plan;
	 
	 	13.4.3	 	the individual limits under Rule 4;
	 
	 	13.4.4	 	any rights attaching to Conditional Awards, Options, Awards or Shares;
	 
	 	13.4.5	 	the terms of this Rule 13.4.

	13.5	 	The approval of the Company in general meeting is not required for any minor
changes to the Rules which are:

	 	13.5.1	 	to benefit the administration of the Plan;
	 
	 	13.5.2	 	to comply with or take account of the provisions of any proposed or
existing legislation;
	 
	 	13.5.3	 	to take account of any changes to legislation; or
	 
	 	13.5.4	 	to obtain or maintain favourable tax, exchange control or regulatory
treatment of any Group Company or any present or future Participant.

	13.6	 	No amendment shall take effect to the extent that it would cause the Plan to cease
to be an “employees’ share scheme” as defined in section 743 of the Companies Act 1985.
	 
	13.7	 	The Committee shall have discretion to terminate the Plan at any time, without
prejudice to subsisting Awards.
	 
	14	 	Governing Law
	 
	 	 	The Plan is governed by English law and if there is any conflict of laws, English law
shall prevail. All Group Companies and Participants shall submit to the jurisdiction of the
English Courts as regards any matter arising under the Plan.

 

9EX-4.4

 

Exhibit 4.4

NEW INTERCONTINENTAL HOTELS GROUP

SHORT TERM DEFERRED INCENTIVE PLAN

	 	 	 	 	 	 	 
	 

	 	Shareholders’ Approval:
	 	15 June 2005
	 	 
	 
	 	 	 	 	 	 
	 

	 	Directors’ Adoption:
	 	15 June 2005	 	 
	 
	 	 	 	 	 	 
	 

	 	Expiry:
	 	15 June 2015	 	 

Linklaters

One Silk Street

London EC2Y 8HQ

Telephone (44-20) 7456 2000

Facsimile (44-20) 7456 2222

Ref Anne Croft

 

 

THE NEW INTERCONTINENTAL HOTELS GROUP

SHORT TERM DEFERRED INCENTIVE PLAN

	1	 	Meanings of words used

	1.1	 	In these Rules:

“Bonus Award” means an award of cash or Bonus Shares made to a Participant in accordance
with the Plan;

“Bonus Shares” means the Shares comprised in a Bonus Award, which may be in the form of a
Conditional Award or a Forfeitable Award;

“Committee” means the Board of Directors of the Company or a duly authorised committee;

“Company” means New InterContinental Hotels Group PLC (with registered number 5134420);

“Conditional Award” means an award of Bonus Shares within Rule 4.3.1;

“Forfeitable Award” means an award of Bonus Shares within Rule 4.3.2;

“Forfeitable Share Agreement” means the agreement setting out the terms of a Forfeitable
Award as required by Rule 4.3;

“Group Company” means the Company, any company which is a subsidiary of the Company within
the meaning of Section 736 of the Companies Act 1985 and any other company which is
associated with the Company and is so designated by the Committee;

“Matching Shares” means additional Shares specified in a Participant’s notification under
Rule 2.7 and awarded under Rule 4.4;

“Option Plan” means the New InterContinental Hotels Group Executive Share Option Plan, as
amended from time to time;

“Participant” means a person who has been selected to participate in the Plan under Rule
2.2;

“Performance Target” means any target specified for a financial year in relation to a Bonus
Award;

“Plan” means this plan known as “The New InterContinental Hotels Group Short Term Deferred
Incentive Plan” in its present form and as from time to time altered in accordance with the
Rules;

“PRSP” means the New InterContinental Hotels Group Performance Restricted Share Plan as
amended from time to time;

“Reconstruction or Takeover” means any takeover, merger or internal reconstruction, however
effected, including a reverse takeover, partial offer, reorganisation or scheme of
arrangement sanctioned by the court;

“Release Date” in relation to any Bonus Shares subject to a Forfeitable Award, the date on
which the Participant is entitled to them free of any restrictions, and in relation to any
Matching Shares and any Bonus Shares subject to a Conditional Award, means the date

 

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on which the Participant becomes entitled to receive them under Rule 8, as specified in the
notification to the Participant under Rule 2.7 and the making of Awards under Rule 4, but in
all cases subject to any delay under Rule 8.2 and subject to any advancement under any other
provision of the Rules

“Rules” means these rules as amended from time to time;

“Salary” in relation to a Bonus Award for a financial year, means the basic annual salary in
effect on the last day of that financial year excluding all payments additional to basic
salary (for example mortgage support allowance, expatriate allowance etc);

“Shares” means fully paid ordinary shares in the capital of the Company, and includes any shares representing them following a Reconstruction or Takeover;

“SIPs” means the New InterContinental Hotels Group Share Incentive Plan and the Britvic
Share Incentive Plan as amended from time to time;

	1.2	 	Where the context admits or requires the singular includes the plural and the
masculine includes the feminine and vice versa; references to any statutory provision include
any modification or re-enactment.
	 
	1.3	 	Headings will be ignored in construing the Rules.
	 
	2	 	Operation of the Plan
	 
	2.1	 	Timing of Operation: The Committee may decide at any time and at its discretion
when the Plan shall be operated.
	 
	2.2	 	Selection of Participants: In relation to any operation of the Plan the Committee
may select any employees or executive directors of any Group Company to be Participants in the
Plan. The Committee will grant conditional Bonus Awards to the Participants it selects to
participate in the Plan. The Committee has the right to withdraw a Participant from the Plan
at any time if it considers that the Participant’s failure or inability to contribute to the
management team effort warrant this, for example if:

	 	2.2.1	 	the participant’s personal performance is formally appraised as
unsatisfactory
	 
	 	2.2.2	 	the participant is subject to disciplinary action
	 
	 	2.2.3	 	the participant is absent from work due to prolonged illness and is unable
to contribute to team performance.

	2.3	 	Performance Target: any Performance Target must relate to a period which is no
longer than one financial year.
	 
	2.4	 	Basis of Calculation of Bonus Awards: Bonus Awards to be made on achievement of the
Performance Target shall be calculated as a specified percentage of Salary. A Bonus Award will
not exceed 100% of Salary.
	 
	2.5	 	Nature of Bonus Awards: Bonus Awards may take the form of cash or Bonus Shares, or
a combination of cash and Bonus Shares, as the Committee may determine. A Bonus Award of Bonus
Shares may take the form of a Conditional Award or a Forfeitable Award and shall be deferred
until the Release Date determined by the Committee. The Committee may also determine that a
specified ratio of Matching Shares shall be awarded on the Release Date. The Committee may
determine that there shall be more than one Release Date in

     
 

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respect of a Bonus Award. The ratio of Matching Shares to Bonus Shares comprised in a Bonus
Award shall not exceed one Matching Share to two Bonus Shares.

	2.6	 	Participant’s preference: The Committee may consult with any Participant before
determining the type of Bonus Award to be made, but shall not be bound by any views expressed
by the Participant.
	 
	2.7	 	Notification of Participants: Participants shall be notified, in writing, that they
have been selected for participation in the Plan. The notice shall include details of any
Performance Target, the date of grant of the conditional Bonus Award, the percentage of
Salary, the nature of the Bonus Award, the Release Date and, if relevant, the ratio of
Matching Shares.
	 
	2.8	 	Variation: Subject to Rule 10.2, the Committee may, at any time after giving notice
of participation, vary its terms as regards the operation of the Plan generally or in respect
of any Participant and specify any other terms applicable to the operation of the Plan.
	 
	3	 	Starters, leavers and Reconstructions and Takeovers
	 
	3.1	 	The Committee may permit an employee to join the Plan part way through a financial
year, on the basis that the Bonus Award is either payable for the full year or pro-rated from
the date of entry, at its discretion. The Participant shall be notified of the terms of
participation accordingly.
	 
	3.2	 	If a Participant’s employment with any Group Company terminates during the
financial year by reason of ill-health, injury, disability, retirement, redundancy, death or
as a result of the sale of the business or company by which he is employed, or in the event of
a Reconstruction or Takeover during the financial year, his Bonus Award may be pro-rated to
the date of termination or the date of Reconstruction or Takeover, or such later date as the
Committee may determine, and may at the Committee’s discretion be made in cash rather than in
Shares.
	 
	3.3	 	If a Participant’s employment with any Group Company terminates during the
financial year for any reason other than those listed in Rule 3.2, he shall not receive any
Bonus Award unless the Committee decides otherwise.
	 
	3.4	 	For the purposes of Rule 3 and Rule 7, a Participant’s employment with a Group
Company will not be treated as having terminated until the Participant ceases to be employed
by any Group Company.
	 
	4	 	Making of Bonus Awards
	 
	4.1	 	Calculation of Bonus Award: As soon as practicable after the end of the financial
year, the Performance Target (if any) shall be evaluated, and the amount of each Participant’s
Bonus Award shall be calculated.
	 
	4.2	 	Bonus Awards in Cash: Bonus Awards payable in cash shall be paid as soon as
practicable by the Company or, where relevant the Group Company employing the Participant.
	 
	4.3	 	Bonus Awards in Shares: in respect of each Bonus Award in Shares, the Company shall
determine whether to make it in the form of a Conditional Award or a Forfeitable Award, and
shall grant such award to the relevant Participant over the relevant number of Shares as
specified in 4.3.1 and 4.3.2 below. The relevant number of Shares will be calculated by
reference to the average of the middle market quotation of a Share for the three business

     
 

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days following the announcement of the Company’s results for the relevant financial year or
such other days as the Company may determine. The middle market quotation is taken from the
Daily Official List of the London Stock Exchange.

	 	4.3.1	 	Conditional Award: the Participant is entitled to receive the relevant
number of Shares on the Release Date, together with a cash payment equal to the net
dividends paid on the Shares between the date of the Bonus Award and the Release Date
(less tax), provided he remains an employee of a Group Company until the Release Date.
	 
	 	4.3.2	 	Forfeitable Award: the relevant number of Shares is transferred to the
Participant or his nominee for his absolute benefit but on terms that he may forfeit
them if he ceases to be an employee of a Group Company before the Release Date, and on
any other terms contained in the Forfeitable Share Agreement. The Participant must sign
the Forfeitable Share Agreement within a specified time, and failure to do so will
result in the forfeiture of the Shares, unless the Company decides otherwise.

	4.4	 	Matching Shares; If specified in the Participant’s notification under Rule 2.7, the
Company shall at the same time as making the Bonus Award in Shares, also grant to the relevant
Participant the right to receive the relevant number of Matching Shares on the Release Date,
conditional on the Participant remaining an employee of a Group Company until the Release
Date.
	 
	5	 	Plan limits
	 
	5.1	 	10 per cent. 10 year limit

The number of Shares which may be allocated under the Plan on any day must not exceed 10 per
cent. of the ordinary share capital of the Company in issue immediately before that day,
when added to the total number of Shares which have been allocated in the previous 10 years
under the Plan and any other employee share plan operated by the Company.

	5.2	 	5 per cent. 10 year limit

The number of Shares which may be allocated under the Plan on any day must not exceed 5 per
cent. of the ordinary share capital of the Company in issue immediately before that day,
when added to the total number of Shares which have been allocated in the previous 10 years
under the Plan and any other discretionary employee share plans operated by the Company.

	5.3	 	1.5 per cent. 1 year limit

The number of Shares which may be allocated under the Plan on any day must not exceed 1.5
per cent. of the ordinary share capital of the Company in issue immediately before that day
when added to the total number of Shares which have been allocated in the previous 12 months
under the Plan, the Option Plan and the PRSP.

	5.4	 	Exclusions

	 	5.4.1	 	Where a right to acquire Shares is released or lapses without being
exercised, the Shares concerned are ignored when calculating the limits in this Rule 5.
When calculating the limits in Rules 5.1, 5.2 and 5.3 Shares awarded as partnership shares under the SIPs are also ignored.

	5.5	 	Meaning of allocate

     
 

4

 

“Allocate” means granting an option or other right to acquire unissued Shares, or if there
is no such grant, the issue and allotment of Shares, and except in the case of the limit in
5.3 includes grants in exchange for rights granted by InterContinental Hotels Group PLC
(with registered number 4551528).

	6	 	Participant’s Rights before the Release Date
	 
	6.1	 	Shareholder rights: Before the Release Date the Participant has:

	 	6.1.1	 	all shareholder rights in respect of Bonus Shares which are subject to a
Forfeitable Award, and
	 
	 	6.1.2	 	no shareholder rights in respect of any Bonus Shares which are subject to a
Conditional Award or in respect of any Matching Shares.

	6.2	 	Variation of share capital etc: The Committee may vary the number of Shares
comprised in a Conditional Award (including any Matching Shares) to take account of any
variation of the share capital of the Company, or any special dividend or other transaction
which might adversely affect the value of the Shares, to ensure that the Participant is not
disadvantaged.
	 
	6.3	 	Reconstruction or Takeover: In the event of a Reconstruction or Takeover, the
Committee may determine that the Release Date for the Shares comprised in a Bonus Award
(including any Matching Shares), or cash of equivalent value, should be advanced to the
effective date of such event, or to such other date as the Committee may think appropriate.
However, in the case of a Reconstruction or Takeover involving the exchange of Shares for
shares in another company, or in more than one other company, the Committee may determine that
the Participant’s right to the Shares comprised in a Bonus Award (including any Matching
Shares) should be replaced by a right to the appropriate number of shares in that other
company or companies.
	 
	6.4	 	Other events: The Committee has discretion to take such action as it may think
appropriate if other events happen which may have an effect on Bonus Awards.
	 
	7	 	Termination of employment before the Release Date
	 
	7.1	 	Ill-health, disability, etc.: If the Participant’s employment with a Group Company
is terminated before the Release Date by reason of ill-health, injury, disability, retirement,
redundancy, death or as a result of the sale of the business or company which he is employed,
the Release Date for some or all of the Shares comprised in his Bonus Award, including any
Matching Shares, may, at the discretion of the Committee, be advanced to the date of
termination, or such other date as the Committee may consider appropriate. If the Committee
does not so determine, the Release Date remains unchanged.
	 
	7.2	 	Reconstruction or Takeover: If the Participant’s employment with a Group Company is
terminated in connection with a Reconstruction or Takeover before the Release Date, the
Release Date in respect of all the Shares comprised in his Bonus Award, including any Matching
Shares, is advanced to the date of termination of employment.
	 
	7.3	 	Other terminations: If the Participant ceases to be in the employment of any Group
Company before the Release Date for any other reason, all Shares subject to Forfeitable Awards
are forfeited, and his right to receive Shares on the Release Date is lost, unless the
Committee decides otherwise.

     
 

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	8	 	Release Date
	 
	8.1	 	Subject to Rule 7 and Rule 8.2, the Participant is entitled to receive the Shares
comprised in his Conditional Award and any award of Matching Shares on the Release Date.
However, the Company may decide to satisfy any Conditional Award and any award of Matching
Shares by paying an equivalent amount in cash, if it considers in its discretion that this
would be appropriate.
	 
	8.2	 	In the event that the acquisition or disposal of Shares is not permitted by law or
by any restrictions imposed pursuant to the provisions of any dealing restrictions imposed by
the authorities in any relevant jurisdiction, the Release Date will be deferred until after
the ending of such restrictions unless the Committee decides otherwise.
	 
	9	 	General
	 
	9.1	 	Notices: Any notice or other document given to any Participant pursuant to the Plan
shall be delivered to him or sent by post to him at his home address according to the records
of his employing company or such other address as may appear to the Committee to be
appropriate. Notices or other documents sent by post shall be deemed to have been given 5 days
following the date of posting.
	 
	9.2	 	Documents sent to Shareholders: The Company is not obliged to send to Participants
copies of any documents or notices sent to the holders of its Shares.
	 
	9.3	 	Reimbursement: Each relevant Group Company shall reimburse the Company for any
costs incurred in connection with the Bonus Awards to Participants who are employed by them.
	 
	9.4	 	Withholding: The Company, and any relevant Group Company may withhold any amounts
or make such arrangements, including the sale of any Shares on behalf of a Participant as are
necessary to meet any liability to taxation or social security contributions in respect of any
Bonus Award (including any Matching Shares).
	 
	9.5	 	Committee’s decisions final and binding: The decision of the Committee in
connection with any interpretation of the Plan Rules or in any dispute relating to any matter
relating to the Plan shall be final and conclusive.
	 
	9.6	 	Costs: The costs of introducing and administering the Plan will be borne by the
Company.
	 
	9.7	 	Regulations: The Committee will have power from time to time to make or vary
regulations for the administration and operation of the Plan provided that the same are not
inconsistent with these Rules.
	 
	9.8	 	Terms of employment:

	 	9.8.1	 	For the purposes of this Rule 9.8, “Employee” means any Participant, or any
other person.
	 
	 	9.8.2	 	This Rule 9.8 applies:

	 	(i)	 	whether the Company has full discretion in the operation of the
Plan, or whether the Company could be regarded as being subject to any
obligations in the operation of the Plan;
	 
	 	(ii)	 	during an Employee’s employment or employment relationship; and

     
 

6

 

	 	(iii)	 	after the termination of an Employee’s employment or
employment relationship, whether the termination is lawful or unlawful.

	 	9.8.3	 	Nothing in the Rules or the operation of the Plan forms part of the
contract of employment or employment relationship of an Employee. The rights and
obligations of an Employee are separate from, and are not affected by, the Plan.
Participation in the Plan does not create any right to, or expectation of, continued
employment or a continued employment relationship.
	 
	 	9.8.4	 	The grant of Bonus Awards and Matching Shares on a particular basis in any
year does not create any right to or expectation of the grant of Bonus Awards and
Matching Shares on the same basis, or at all, in any future year.
	 
	 	9.8.5	 	No Employee is entitled to participate in the Plan, or be considered for
participation in it, at a particular level or at all. Participation in one operation of
the Plan does not imply any right to participate, or to be considered for participation
in any later operation of the Plan.
	 
	 	9.8.6	 	Without prejudice to an Employee’s right to receive the Bonus Shares
comprised in an Award and any Matching Shares subject to and in accordance with the
express terms of the Rules and the Performance Condition, no Employee has any rights in
respect of the exercise or omission to exercise any discretion, or the making or
omission to make any decision, relating to the Bonus Award and any Matching Shares. Any
and all discretions, decisions or omissions relating to the Bonus Award or Matching
Shares may operate to the disadvantage of the Employee, even if this could be regarded
as capricious or unreasonable, or could be regarded as in breach of any implied term
between the Employee and his employer, including any implied duty of trust and
confidence. Any such implied term is excluded and overridden by this Rule 9.8.
	 
	 	9.8.7	 	No Employee has any right to compensation for any loss in relation to the
Plan, including:

	 	(i)	 	any loss or reduction of any rights or expectations under the
Plan in any circumstances or for any reason (including lawful or unlawful
termination of employment or the employment relationship);
	 
	 	(ii)	 	any exercise of a discretion or a decision taken in relation to
a Bonus Award or Matching Shares or to the Plan, or any failure to exercise a
discretion or take a decision;
	 
	 	(iii)	 	the operation, suspension, termination or amendment of the
Plan.

	 	9.8.8	 	Participation in the Plan is permitted only on the basis that the
Participant accepts all the provisions of the Rules, including in particular this Rule
9.8. By participating in the Plan, an Employee waives all rights under the Plan, other
than the right to receive Shares subject to and in accordance with the express terms of
the Rules and the Performance Condition, in consideration for, and as a condition of,
the grant of an Bonus Award or Matching Shares under the Plan.
	 
	 	9.8.9	 	Nothing in this Plan confers any benefit, right or expectation on a person
who is not an Employee. No such third party has any rights under the Contracts (Rights
of Third Parties) Act 1999 to enforce any term of this Plan. This does not affect any
other right or remedy of a third party which may exist.

     
 

7

 

	 	9.8.10	 	Each of the provisions of this Rule 9.8 is entirely separate and
independent from each of the other provisions. If any provision is found to be invalid
then it will be deemed never to have been part of these Rules and to the extent that it
is possible to do so, this will not affect the validity or enforceability of any of the
remaining provisions.

	9.9	 	Data protection: By participating in the Plan the Participant consents to the
holding and processing of personal data provided by the Participant to the Company for all
purposes relating to the operation of the Plan. These include, but are not limited to:

	 	9.9.1	 	administering and maintaining Participant records;
	 
	 	9.9.2	 	providing information to trustees of any employee benefit trust,
registrars, brokers or third party administrators of the Plan;
	 
	 	9.9.3	 	providing information to future purchasers of the Company or the business
in which the Participant works;
	 
	 	9.9.4	 	transferring information about the Participant to a country or territory
outside the European Economic Area.

	10	 	Amendments and Termination
	 
	10.1	 	Committee’s powers of amendment: Subject to the following provisions of this rule,
the Committee may in its discretion waive, amend or add to the Rules as it thinks fit.
	 
	10.2	 	Participants’ Consent: No amendment shall be made which would have the effect of
abrogating or altering adversely in any material respect any of the subsisting rights of
Participants in relation to Shares comprised in a Bonus Award, except with the consent of the
majority of the Participants affected by the proposed amendment.
	 
	10.3	 	Participants who move overseas: Notwithstanding any other provision of the Plan
the Committee may amend, vary or add to the provisions of the Plan as it considers necessary
or desirable to take account of, or to mitigate, or to comply with relevant overseas taxation,
securities or exchange control laws, provided that the benefits granted to such Participants
are not overall more favourable than the benefits granted to other Participants.
	 
	10.4	 	Notice: As soon as reasonably practicable after making any alteration to the Plan,
the Committee will give written notice to any Participant materially affected by the
alteration.
	 
	10.5	 	Termination of the Plan: The Committee may terminate the Plan at any time.
	 
	11	 	Governing Law
	 
	11.1	 	The Plan is governed by English law and if there is any conflict of laws English
law will prevail. All Group Companies and all Participants shall submit to the jurisdiction of
the English Courts as regards any matter arising under the Plan.

     
 

8

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