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                                  LUXFER HOLDINGS PLC                      EMPLOYEE STOCK PURCHASE PLAN                  (As adopted by the Board of Directors on March 27, 2014)         1.    Purpose.   The  purpose  of  the  Plan  is  to  provide  Eligible  Employees  of  the  Subsidiaries of the Company with an opportunity to purchase Shares of the Company (evidenced  by American Depositary Receipts) through accumulated payroll deductions.  It is the intention of  the Company to have the Plan qualify as an “employee stock purchase plan” under Section 423  of the Code.  The provisions of the Plan, accordingly, shall be construed in a manner consistent  with the requirements of Section 423 of the Code.         2.    Definitions.               (a)   “American Depositary Shares” shall mean American Depositary Shares,  each  representing one half  of  an Ordinary Share.  The  American  Depositary  Shares  are  evidenced by American Depositary Receipts issued pursuant to the Deposit Agreement, dated as  of October  3, 2012 between the  Company and  The  Bank  of  New  York  Mellon,  as  it  may  be  amended from time to time.               (b)   “Administrator”  shall  mean  the  Board  or  any  committee  of  the  Board  designated by the Board to administer the Plan.               (c)   “Board” shall mean the Board of Directors of the Company.               (d)   “Code” shall mean the Internal Revenue Code of 1986, as amended.               (e)   “Company”  shall  mean Luxfer  Holdings  PLC,  incorporated  in  England  and Wales, and any successor thereto.               (f)   “Compensation” shall  mean  an  Eligible  Employee’s  regular  salary  as  determined  in  accordance  with  the  Company’s  payroll  records,  excluding  any  bonuses,  commissions,  taxable  or  non-taxable  fringe  benefits,  car  or  other  allowances,  and  any  other  forms of compensation.               (g)   “Designated  Subsidiary”  shall  mean  any  Subsidiary  selected  by the  Administrator as eligible to participate in any Offering(s) under the Plan.               (h)   “Eligible  Employee”,  in  respect  of  any  Offering,  shall  mean  any  individual (1) who is an employee (for tax purposes) of a Designated Subsidiary prior to the date  of the commencement of the Offering Period, (2) who has been employed by such Designated  Subsidiary for at least six (6)  months since his or her last hire date (or such lesser period of time  as may be determined for any Offering by the Administrator in its discretion) prior to the date of  the commencement of the Offering Period, (3) who customarily works  more than twenty (20)  hours  per  week  (or  such  lesser  period  of  time  as  may  be  determined for  any  Offering by  the  Administrator in its discretion), and (4) who customarily works more than five (5) months per  calendar  year  (or  such  lesser  period  of  time  as  may  be  determined for  any  Offering by  the  Administrator in its discretion); provided that employees who are citizens or residents of a non-     

 

   U.S.  jurisdiction  (without  regard  to  whether  they  also  are  citizens  or  residents  of  the  United  States  or  resident  aliens  (within  the  meaning  of  Section  7701(b)(1)(A)  of  the  Code))  may  be  excluded from participation in the Plan or an Offering if the participation of such employees is  prohibited  under  the  laws  of  the  applicable  jurisdiction  or  if  complying  with  the  laws  of  the  applicable jurisdiction would cause the Plan or an Offering to violate Section 423 of the Code.   For purposes of the Plan, the employment relationship shall be treated as continuing intact while  the individual is on sick leave or other approved leave of absence; provided that where the period  of leave exceeds 90 days and the individual’s right to reemployment is not guaranteed either by  statute or by contract, the employment relationship shall be deemed to have terminated on the  91st day of such leave.               (i)   “Exercise Date” shall mean the last day of each Offering Period.               (j)   “Fair  Market  Value”  shall  mean,  as  of  any  date,  the  value  of  a Share  determined as follows:                     (i)   If  the  Shares  are  listed  on  any  established  stock  exchange  or  a  national  market  system,  including  without  limitation  the  New  York  Stock  Exchange,  the  Fair  Market Value shall be the closing sales price for such Share (or the closing bid, if no sales were  reported) as quoted on such exchange or system on the date of determination;                     (ii)  If the Shares are regularly quoted by a recognized securities dealer  but selling prices are not reported, the Fair Market Value shall be the mean of the closing bid and  asked prices for the Shares on the date of determination, as reported in The Wall Street Journal  or such other source as the Board deems reliable; or                     (iii) In  the  absence  of  an  established  market  for  the  Shares,  the  Fair  Market Value thereof shall be determined in good faith by the Board.                     The  Fair  Market  Value  of  Shares  as  of  any  such  date  on  which  the  applicable  exchange  or  inter-dealer  quotation  system  through  which  trading  in  the  Shares  regularly occurs is closed shall be the Fair Market Value determined pursuant to this Section 2(j)  as  of  the  immediately  preceding  date  on  which  the  Shares  are  traded,  a  bid  and  ask  price  is  reported or a trading price is reported by any member of FINRA selected by the Administrator.               (k)   “Grant Date” shall mean the first day of each Offering Period.               (l)   “Offering” means  an  offer  under  the  Plan  of  an  option  that  may  be  exercised during an Offering Period as further described in Section 5. For purposes of the Plan,  the Administrator may designate separate Offerings under the Plan (the terms of which need not  be identical) and may select one or more Subsidiaries to be eligible to participate therein, even if  the  dates  of  the  applicable  Offering  Periods  of  each  such  Offering  are  identical  and  the  provisions of the Plan will separately apply to each Offering. To the extent permitted by U.S.  Treasury  Regulation  Section  1.423-2(a)(1),  the  terms  of  each  Offering  need  not  be  identical  provided that the terms  of the Plan and an Offering together satisfy U.S. Treasury Regulation  Section 1.423-2(a)(2) and (a)(3).                                          2    

 

               (m)   “Offering  Periods”  shall  mean consecutive six  (6)  month  periods  commencing on or about June 1 and December 1 of each calendar year beginning in calendar  year 2014.  The date of the initial Offering Period under the Plan and the duration and timing of  Offering Periods may be changed pursuant to Section 5 of this Plan.                 (n)   “Ordinary  Shares”  means  ordinary  shares  of  the  Company, nominal  value £1 per share.               (o)   “Parent” shall mean a “parent corporation” as defined in Section 424(e)  of the Code.               (p)   “Plan”  shall  mean  this Luxfer  Holdings  PLC Employee  Stock  Purchase  Plan, as it may be amended from time to time.               (q)   “Purchase  Price”  shall  mean  an  amount  equal  to  eighty-five  percent  (85%)  of  the  Fair  Market  Value  of  a  Share  on either  the  Grant  Date  or the  Exercise  Date,  whichever  is  less;  provided  however,  that  the  Purchase  Price  may  be  adjusted  by  the  Administrator pursuant to Section 20.               (r)   “Share” shall mean an American Depositary Share.               (s)   “Subsidiary”  shall  mean  a  “subsidiary  corporation” of  the  Company,  whether now or hereafter existing, as defined in Section 424(f) of the Code.         3.    Administration.               (a)   Authority.  The Administrator acting in its absolute discretion shall have  the power to interpret this Plan and to take, or authorize one or more of its members or one or  more of the Company’s officers to take, such actions in the administration and operation of this  Plan as are expressly called for in the Plan or as the Administrator deems equitable under the  circumstances, which actions shall to the fullest extent permitted by law be final and binding on  all parties.               (b)   Custodians.   The  Administrator  may  from  time  to  time  appoint  one  or  more custodians (each,  a  “Custodian”) for the  Plan to  (i) hold  all Shares  purchased under the  Plan,  (ii)  maintain  a  separate  account  in  the  name  of  each  participant  (such  participant’s  “Account”), to which payroll deductions made for such participant pursuant to Section 7 hereof  and  Shares  purchased  on  such  participant’s  behalf  pursuant  to the  Plan shall  be  credited,  (iii)  provide  participants,  at  least  annually,  with statements  of  their  respective Accounts  and  (iv)  perform such other functions as the Administrator shall specify.               (c)   No Liability.  To the extent permitted by applicable law, (i) no member of  the Administrator shall be liable for any action, omission, or determination relating to the Plan,  and (ii) the Company shall indemnify and hold harmless each member of the Administrator and  each  other  director  or  employee  of  the  Company  to  whom  any  duty  or  power  relating  to  the  administration  or  interpretation  of  the  Plan  has  been  delegated  against  any  cost  or  expense  (including counsel fees) or liability (including any sum paid in settlement of a claim with the                                         3    

 

   approval of the Administrator) arising out of any action, omission or determination relating to  the Plan.         4.    Eligibility.                 (a)   Eligibility. Any Eligible Employee on a given Grant Date shall be eligible  to participate in the Plan.                (b)   Limitations.  Any provisions of the Plan to the contrary notwithstanding,  no Eligible Employee shall be granted an option under the Plan (i) to the extent that, immediately  after the grant, such Eligible Employee (or any other person whose Shares would be attributed to  such Eligible Employee pursuant to Section 424(d) of the Code) would own Shares and/or hold  outstanding  options  to  purchase  Shares  possessing  five  percent  (5%)  or  more  of  the  total  combined voting power or value of all classes of stock of the Company or of any Subsidiary, or  (ii) to the extent that his or her rights to purchase stock under the Plan and any other plans of the  Company  and  its  Subsidiaries  which  constitute  “employee  stock  purchase  plans”  within  the  meaning of Section 423 of the Code would accrue at a rate which exceeds twenty-five thousand  dollars  ($25,000)  worth  of  Shares (or,  if  Section  423(b)(8)  of  the  Code  is  hereafter  amended,  such other maximum dollar value as may be specified therein), determined at the Fair Market  Value of the Shares on the date the option to purchase such Shares is granted, for each calendar  year in which such option is outstanding at any time.         5.    Offering  Periods.  The  Board  shall  have  the  power  to  change  the  date  of  the  initial Offering Period under the Plan, the duration of Offering Periods and the commencement  dates  thereof  with  respect  to  future  offerings  without  shareholder  approval  if  such  change  is  announced prior to the scheduled beginning of the first Offering Period to be affected thereafter.           6.    Participation.               (a)   Initial Offering Period.  An Eligible Employee may become a participant  in  the  Plan  by  completing  and  submitting  a  subscription  agreement  no  later  than ten  (10)  business days  (or such other number of days as  determined by the Administrator) prior to the  commencement of the applicable Offering Period in such form and manner as the Administrator  may  prescribe including  through  an  electronic  or  other  enrollment  procedure (a  “Subscription  Agreement”) authorizing payroll deductions as provided in Section 7.               (b)   Subsequent Offering Periods.  Each Subscription Agreement completed  and submitted by a participant pursuant to Section 6(a) or 7(c) hereof shall remain in effect for  successive  Offering  Periods,  and  payroll  deductions  authorized  thereby  shall  continue  to  be  made, until either (i) the participant duly completes and submits a new Subscription Agreement,   (ii)  the  participant  ceases  to  be  an  Eligible  Employee or (iii) the  participant’s  participation  is  terminated as provided in Section 12 or 13 hereof.         7.    Payroll Deductions.               (a)   Subject  to  the  provisions  of  this  Section  7,  in his  or  her  Subscription  Agreement, each participant shall elect to have payroll deductions made on each pay day during  the Offering Period in an amount, designated in whole percentages, not exceeding fifteen percent                                         4    

 

   (15%) of the Compensation which he or she receives on each such pay day; provided, however,  that should a pay day occur on or within ten (10) business days prior to an Exercise Date, no  payroll deduction will be made in respect of such Exercise Date unless the Company elects to  process the election more quickly.               (b)   All payroll deductions made for a participant shall be credited to his or her  Account under the Plan.  No interest shall accrue on the payroll deductions of a participant in the  Plan.  A participant may not make or arrange to be made any additional payments into his or her  Account.               (c)   A  participant  may  discontinue  his  or  her  participation  in  the  Plan  as  provided  in  Section  12  hereof,  or  may  increase  or  decrease  the  rate  of  his  or  her  payroll  deductions  during  the  Offering  Period  by  completing  or  filing  with  the  Company  a  new  Subscription Agreement authorizing a change in payroll deduction rate.  The Administrator may,  in its discretion, limit the nature and/or number of participation rate changes during any Offering  Period.  The change in rate shall be effective with the first full payroll period following ten (10)  business  days  after  the  Company’s  receipt  of  the  new  Subscription  Agreement  unless  the  Company elects to process a given change in participation more quickly.                (d)   Notwithstanding  the  foregoing,  (i)  the  amount  deducted  from  any  participant’s Compensation in any calendar year shall not exceed the amount equal to eighty five  percent  (85%)  of  the  maximum  dollar  value  of  Shares  which  the  participant  is  permitted  to  purchase in such calendar year under Section 423 of the Code and (ii) to the extent necessary to  comply  with  Section  423(b)(8)  of  the  Code  and  Section  4(b)  hereof  and  this  Section  7(d),  a  participant’s payroll deductions may be decreased to zero dollars ($0.00) at any time during an  Offering Period.  Payroll deductions shall recommence at the rate provided in such participant’s  Subscription Agreement at the beginning of the first Offering Period with respect to which the  Company  determines  that  a  decrease  of  payroll  deductions  pursuant  to  Section  7(d)(ii)  is  no  longer required, unless terminated by the participant as provided in Section 12 hereof.               (e)   At the time the option is exercised, in whole or in part, or at the time some  or  all  of  the  Shares  issued  under  the  Plan  is  disposed  of,  the  participant  must  make  adequate  provision for the Company’s federal, state, or other tax withholding obligations, if any, which  arise upon the exercise of the option, the disposition of the Shares or otherwise.  At any time, the  Company may, but shall not be obligated to, withhold from the participant’s Compensation the  amount necessary for the Company to meet applicable withholding obligations.         8.    Grant of Option.               (a)   On  the  Grant  Date  of an Offering  Period,  each  Eligible  Employee  participating in such Offering shall be granted an option to purchase on such Exercise Date up to  a number of Shares determined by dividing such participant’s payroll deductions accumulated  prior to such Exercise Date and retained in the participant’s Account as of the Exercise Date by  the applicable Purchase Price.  Notwithstanding the foregoing, the maximum number of Shares  that may be purchased pursuant to any option in respect of any Offering shall be the lower of (i)  one thousand five hundred (1500) Shares and (ii) the number permitted under Section 4(b) hereof  and Section 423 of the Code.  The Administrator may, for future Offerings, increase or decrease,                                         5    

 

   in  its  absolute  discretion,  the  maximum  number  of  the  Shares  an  Eligible  Employee  may  purchase  during  each  Offering.   Exercise  of  the  option  shall  occur  as  provided in  Section  9  hereof, unless the participant has withdrawn or been deemed to withdraw pursuant to Section 12  hereof.           9.    Exercise of Option.               (a)   Unless a participant withdraws (or is deemed to withdraw) from the Plan  as provided in Section 12 hereof, his or her option for the purchase of Shares shall be exercised  automatically  on  the  Exercise  Date,  and  the  maximum  number  of  full  Shares  subject  to  the  option  shall  be  purchased  for  such  participant  at  the  applicable  Purchase  Price  with  the  accumulated payroll deductions in his or her Account.  No fractional Shares shall be purchased.   Any  payroll  deductions  accumulated  in  a  participant’s  Account  which  are  not  sufficient  to  purchase a full Share shall be retained in the participant’s Account for the subsequent Offering  Period, subject to earlier withdrawal (or deemed withdrawal) by the participant as provided in  Section 12 hereof.  Any other funds left over in a participant’s Account after the Exercise Date  shall  be  returned  to  the  participant.   During  a  participant’s lifetime,  a  participant’s  option  to  purchase Shares hereunder is exercisable only by him or her.               (b)   If the Administrator determines that, on a given Exercise Date, the number  of Shares with respect to which options are to be exercised may exceed the number of Shares  available  for  sale  under  the  Plan  on  such  Exercise  Date,  the  Administrator  may  in  its  sole  discretion provide that the Company shall make a pro rata allocation of the Shares available for  purchase on such Exercise Date in as uniform a manner as shall be practicable and as it shall  determine  in  its  sole  discretion  to  be  equitable  among  all  participants  exercising  options  to  purchase Shares  on such Exercise Date and the  unexercised portion  of  any such options shall  expire.         10.   Delivery.  As soon as reasonably practicable after each Exercise Date on which a  purchase  of  Shares  occurs,  the  Company  shall  arrange  the  delivery  to  each  participant  of  the  Shares purchased upon exercise of his or her option by crediting such Shares to the participant’s  Account or otherwise in such form and manner as may be determined by the Administrator.         11.   Rights as a Stockholder.               (a)   Rights Prior to Purchase.  Prior to the Exercise Date on which Shares are  purchased on behalf of a participant under the Plan, such participant shall not have any rights as  a shareholder of the Company with respect to such Shares.               (b)   Rights After Purchase.                       (i)   From and after the Exercise Date on which Shares are purchased  on behalf of a participant  under the Plan, such  participant  (or, in  the  case of the participant’s  death, the person(s) entitled thereto under Section 15) shall have all of the rights and privileges  of a shareholder of the Company with respect to such Shares. Subject to Section 13(b), Shares  will remain in the participant’s Account until such time as the participant (or, in the case of the  participant’s  death,  the  person(s)  entitled  to  do  so  under  Section  15)  directs  the  sale  of  such  Shares in accordance with Section 11(b)(ii); provided however that any ordinary cash dividends                                         6    

 

   paid  with  respect  to  Shares held  in  a  participant’s  Account may,  at  the  option  of  the  Administrator, be invested automatically in full and fractional Shares purchased at 100% of Fair  Market Value on the date such dividend is paid.                      (ii)  Subject to the Company’s policies then in effect (including without  limitation  its  policies  regarding  insider  trading  and  trading  windows  then  in  effect) and any  applicable  law,  a  participant  (or,  in  the  case  of  the  participant’s  death,  the  person(s)  entitled  thereto under Section 16) shall be entitled, upon the payment of a customary brokerage fee, to  direct the Custodian to sell all or any portion of the Shares then held in his or her Account. Any  Shares purchased pursuant to Section 9 shall be sold in the order in which they were purchased  on such participant’s behalf under the Plan.         12.   Withdrawal.               (a)   A  participant  may  withdraw  all  but  not  less  than  all of the  payroll  deductions credited to his or her Account and not yet used to exercise his or her option under the  Plan  at  any  time  by giving  written  notice  to  the  Company  in  such  form  and  manner  as  the  Administrator may prescribe, provided notice must be given no later than ten (10) business days  prior  to  the  Exercise  Date  or  such  payroll  deductions  will  be  used  to  purchase  shares  on  the  Exercise Date in the ordinary course. All of the participant’s payroll deductions credited to his or  her Account shall be paid to such participant as soon as reasonably practicable after receipt of  notice of withdrawal and such participant’s option for the Offering Period shall be automatically  terminated, and no further payroll deductions for the purchase of Shares shall be made for such  Offering  Period.   Any  Shares  held  in  the  participant’s  Account  as  of  the  date  of  his  or  her  withdrawal  shall  remain  in his  or  her  Account  in  accordance  with  Section  11 hereof.   If  a  participant  withdraws  from  an  Offering  Period,  payroll  deductions  shall  not  resume  at  the  beginning of any succeeding Offering Period unless the participant delivers to the Company a  new Subscription Agreement.               (b)   A  participant’s  withdrawal  from  an  Offering  Period  shall  not  have  any  effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted  by the Company or in succeeding Offering Periods which commence after the termination of the  Offering Period from which the participant withdraws.         13.   Termination of Employment.                 (a)   Upon  termination  of  a  participant’s  employment  for  any  reason,  such  participant  shall  be  deemed  to  have  elected  to  withdraw  from  the  Plan  and  the provisions  of  Section 12(a) hereof shall apply.                 (b)   Within  90  days  of  termination  of  a  participant’s  employment  for  any  reason (other than due to a participant’s death), the participant shall withdraw all Shares held in  the participant’s Account. Upon expiration of the 90-day period following such termination, the  Custodian  shall  have  the  right  to  sell  all  Shares  remaining  in  the  participant’s  Account  in  the  open market and will distribute the proceeds to the participant upon such a sale.                 (c)   In  the  case  of  termination  due  to  a  participant’s  death,  the  distribution  described in Section 12(a) shall be made to the person(s) entitled thereto under Section 15.                                           7    

 

               (d)   For purposes of this Section 13, an employee will not be deemed to have  terminated employment or failed to remain in the continuous employ of a Designated Subsidiary  in the case of sick leave, military leave, or any other approved leave of absence; provided that  such leave is for a period of not more than ninety (90) days or reemployment upon the expiration  of such leave is guaranteed by contract or statute.         14.   Shares Reserved for Plan.  Subject to adjustment upon changes in capitalization  of the Company as provided in Section 19 hereof, the maximum number of Shares which shall  be made available for sale under the Plan shall be 250,000 Shares.  Shares may be purchased  pursuant to the Plan on the open market or from the Company.         15.   Designation of Beneficiary.                (a)   A participant may file, in such form and manner as the Administrator may  designate from time to time, a written designation of a beneficiary who is to receive any Shares  and cash, if any, from the participant’s Account under the Plan in the event of such participant’s  death subsequent to an Exercise Date on which the option is exercised but prior to delivery to  such participant of such Shares and cash.  In addition, a participant may file a written designation  of a beneficiary who is to receive any cash from the participant’s Account under the Plan in the  event of such participant’s death prior to exercise of the option.  If a participant is married and  the  designated  beneficiary  is  not  the  spouse,  spousal  consent  shall  be  required  for  such  designation to be effective.               (b)   Such designation of beneficiary may be changed by the participant at any  time  by  written notice.   In  the  event  of  the  death  of  a  participant  and  in  the  absence  of  a  beneficiary  validly  designated  under  the  Plan  who  is  living  at  the  time  of  such  participant’s  death, the Company shall deliver such Shares and/or cash to the executor or administrator of the  estate  of  the  participant,  or  if  no  such  executor  or  administrator  has  been  appointed  (to  the  knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash  to the spouse or to any one or more dependents or relatives of the participant, or if no spouse,  dependent or relative is known to the Company, then to such other person as the Administrator  may designate.         16.   Transferability.  Neither payroll deductions credited to a participant’s Account  nor any rights with regard to the exercise of an option or to receive Shares under the Plan may be  assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws  of descent  and distribution or as provided in  Section 15 hereof) by the participant.  Any such  attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the  Company  may  treat  such  act  as  an  election  to  withdraw  funds  from  an  Offering  Period  in  accordance with Section 12 hereof.         17.   Use  of  Funds.   Each participant  shall  be  a  general  unsecured  creditor  of  the  Company with respect to any amounts deducted from such participant’s Compensation under the  Plan  during  the  period  prior  to  the  Exercise  Date  on  which  such  amounts  are  applied  to  the  purchase of Shares for the participant.  The Company shall not be obligated to segregate from  other  assets  of  the  Company  any  funds  accumulated  through  payroll  deductions  made  for  participants under the Plan, and may use such funds for any corporate purpose.                                         8    

 

         18.   Reports.  Statements  of Accounts shall  be  given  to  participating  Eligible  Employees at least annually, which statements shall set forth the amounts of payroll deductions,  the Purchase Price, the number of Shares purchased and the remaining cash balance, if any.         19.   Adjustments  Upon  Changes  in  Capitalization,  Dissolution,  Liquidation,  Merger or Change of Control.               (a)   Changes  in  Capitalization.   Subject  to  any  required  action  by  the  shareholders of the Company, the maximum number of Shares which shall be made available for  sale under the Plan (pursuant to Section 14), the maximum number of Shares each participant  may purchase in each Offering Period (pursuant to Section 8), as well as the price per Share and  the number of Shares covered by each option under the Plan which has not yet been exercised  shall be proportionately adjusted for any increase or decrease in the number of issued Ordinary  Shares resulting from any dividend or other distribution (whether in the form of cash, Common  Stock,  other  securities,  or  other  property  other than  an  ordinary  cash  dividend), stock  split,  reverse stock split, stock dividend, combination or reclassification of the Ordinary Shares, any  other change in the number of Ordinary Shares effected without receipt of consideration by the  Company or  any  change  in  the  number  of  Ordinary  Shares  represented  by  a  Share; provided,  however, that conversion of any convertible securities of the Company shall not be deemed to  have  been  “effected  without  receipt  of  consideration.”  Such  adjustment shall  be  made  by  the  Administrator, in its sole discretion, whose determination in that respect shall be final, binding  and conclusive.  Except as expressly provided herein, no issuance by the Company of shares of  stock of any class, or securities convertible into shares of stock of any class, shall affect, and no  adjustment by reason thereof shall be made with respect to, the number or price of Shares subject  to an option.               (b)   Dissolution or Liquidation.  In the event of the proposed dissolution or  liquidation of the Company, the Offering Period then in progress shall be shortened by setting a  new  Exercise  Date  (the  “New  Exercise  Date”),  and  shall  terminate  immediately  prior  to  the  consummation  of  such  proposed  dissolution  or  liquidation,  unless  provided  otherwise  by  the  Administrator.   The  New  Exercise  Date  shall  be  before  the  date  of  the  Company’s  proposed  dissolution or liquidation.  The Administrator shall notify each participant in writing, at least ten  (10) business days prior to the New Exercise Date, that the Exercise Date for the participant’s  option  has  been  changed  to  the  New  Exercise  Date  and  that  the  participant’s  option  shall  be  exercised automatically on the New Exercise Date, unless prior to such date the participant has  withdrawn from the Offering Period as provided in Section 12 hereof.               (c)   Merger  or  Asset  Sale.   In  the  event  of  a  proposed  sale  of  all  or  substantially all  assets  of the Company, or the proposed  merger of the  Company  with  or into  another corporation, arrangements shall be made for each outstanding option to be assumed or an  equivalent  option  substituted  by  the  successor  corporation  or  a  Parent  or  Subsidiary  of  the  successor corporation.  In the event that the successor corporation refuses to assume or substitute  for  the  option,  unless  provided  otherwise  by  the  Administrator,  the  Offering  Period  then  in  progress shall be shortened by setting a New Exercise Date.  The New Exercise Date shall be  before the date of the Company’s proposed merger or asset sale.  The Administrator shall notify  each participant in writing, at least ten (10) business days prior to the New Exercise Date, that  the Exercise Date for such Offering Period has been changed to the New Exercise Date and that                                         9    

 

   the participant’s option shall be exercised automatically on the New Exercise Date, unless prior  to such date the participant has withdrawn from the Offering Period as provided in Section 12  hereof.         20.   Amendment or Termination.               (a)   The Administrator may at any time and for any reason terminate or amend  the  Plan.   Except  as  otherwise  provided  in  the  Plan,  no  such  termination  can  affect  options  previously granted, provided that an Offering Period may be terminated by the Administrator on  any Exercise Date if the Administrator determines that the termination of the Offering Period or  the  Plan  is  in  the  best  interests  of  the  Company  and  its  shareholders.   Except  as  provided  in  Section 19 and  this  Section  20 hereof,  no  amendment  may  make  any  change  in  any  option  theretofore granted which adversely affects the rights of any participant.  To the extent necessary  to  comply  with  Section  423  of  the  Code  (or  any  successor  rule  or  provision  or  any  other  applicable law, regulation or stock exchange rule), the Company shall seek to obtain shareholder  approval  in  such  a  manner  and  to  such  a  degree  as  required.  In  the  event  the  Plan  is  not  approved by the shareholders of the Company within 12 months following its adoption by the  Board,  on  the  first  anniversary  of  such  adoption  date,  the  Plan  shall  terminate  and  each  Participant  shall  be  treated  as  though he  or  she  withdrew  from  the  Plan  in  accordance  with  Section 12 hereof on such date.               (b)   Without  shareholder  consent  and  without  regard  to  whether  any  participant rights may be considered to have been “adversely affected,” the Administrator shall  be entitled to change the Offering Periods, limit the frequency and/or number of changes in the  amount withheld during an Offering Period, establish the exchange ratio applicable to amounts  withheld  in  a  currency  other  than  U.S.  dollars,  permit  payroll  withholding  in  excess  of  the  amount designated by a participant in order to adjust for delays or mistakes in the Company’s  processing  of  properly  completed  withholding  elections,  establish  reasonable  waiting  and  adjustment periods and/or accounting and crediting procedures to ensure that amounts applied  toward the purchase of Shares for each participant properly correspond with amounts withheld  from the participant’s Compensation, and establish such other limitations or procedures as the  Administrator determines in its sole discretion advisable which are consistent with the Plan.               (c)   In  the  event  the  Administrator  determines  that  the  ongoing  operation  of  the Plan may result in unfavorable financial accounting consequences, the Administrator may, in  its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or  eliminate  such  accounting  consequence  including,  but  not  limited  to  shortening  any  Offering  Period  so  that  Offering  Period  ends  on  a  new  Exercise  Date,  including  an  Offering  Period  underway at  the  time  of  such  action.   Such  modifications  or  amendments  shall  not  require  shareholder approval or the consent of any Plan participants.         21.   Notices.  All notices or other communications by a participant to the Company  under or in connection with the Plan shall be deemed to have been duly given when received in  the form and manner specified by the Company at the location, or by the person, designated by  the Company for the receipt thereof.                                          10    

 

         22.   Conditions Upon Issuance of Shares.  Shares shall not be issued with respect to  an  option  unless  the  exercise  of  such  option  and  the  issuance  and  delivery  of  such  Shares  pursuant  thereto  shall  comply  with  all  applicable  provisions  of  law,  domestic  or  foreign,  including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange  Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements  of  any  stock  exchange  upon  which  the  Shares  may  then  be  listed,  and,  if  required  by  the  Company, shall be further subject to the approval of counsel for the Company with respect to  such  compliance.   As  a  condition  to  the  exercise  of  an  option,  the  Company  may  require  the  person exercising such option to represent and warrant at the time of any such exercise that (i)  the Shares are being purchased only for investment and without any present intention to sell or  distribute such Shares and/or (ii) any disposition of such shares will be made in accordance with  the Company’s policies then in effect (including without limitation its policies regarding insider  trading and trading windows then in effect) and applicable law if, in the opinion of counsel for  the  Company,  such  representations are required  by  any  of  the  aforementioned  applicable  provisions of law.         23.   No Rights to Continued Employment.  Neither this Plan nor the grant of any  option hereunder shall confer any right on any Eligible Employee to remain in the employ of the  Company or any Designated Subsidiary, or restrict the right of the Company or any Designated  Subsidiary to terminate such Eligible Employee’s employment.         24.   Equal  Rights  and  Privileges.   All  Eligible  Employees  participating  in  an  Offering  Period  under  this  Plan  shall  have  equal  rights  and  privileges  with  respect  to  such  Offering  Period  so  that  this  Plan  qualifies  as  an  “employee  stock  purchase  plan”  within  the  meaning of Section 423 or any successor provision of the Code and the related regulations.  Any  provision of this Plan which is inconsistent with Section 423 or any successor provision of the  Code shall, without further act or amendment by the Company or the Administrator, be reformed  to comply with the requirements of Section 423.  This Section 24 shall take precedence over all  other provisions in this Plan.         25.   Term of Plan.  The Plan shall become effective upon the earlier to occur of its  adoption by the Board or its approval by the shareholders of the Company.  It shall continue in  effect until terminated under Section 20 hereof.           26.   Risk  of  Participants.  Each participant  assumes  all  risks  associated  with  any  decrease  in  the  value  of  any  securities  in  the participant’s  Account  and  agrees  that  his  or  her  Account will be the sole source of payments under the Plan and that the Company will not be  responsible for the payment of any benefits under the Plan.  The establishment and operation of  this Plan by the Company does not constitute a recommendation that any person purchase Shares  or any other securities.  The Shares available for purchase under the Plan may or may not be a  suitable investment for Eligible Employees, and each Eligible Employee should therefore make  an independent investigation into the merits of each investment.  Each participant, by becoming a  participant, agrees that the participant is in no way relying on the Company or the Custodian for  information or advice concerning the participant’s investment decisions and that the Company  and the Custodian are under no obligation to inform the participant of any information which the  Company  or  the  Custodian  may  possess  at  any  time  which  is  or  may  be  material  to the  investment decision of the participant.                                         11    

 

         27.   Tax  Effects.  Each  participant,  by  completing  a  Subscription  Agreement,  acknowledges  that  the  participant  is  not  relying  on  advice  by  any  person  associated with  the  Company  that  favorable  tax  effects  will  result  from  participation  in  the  Plan  and  that  the  participant  has  been  given  sufficient  opportunity  to  consult  with  the  participant’s  own  tax  advisors concerning participation in the Plan.         28.   Applicable Law.  To the extent not governed by federal law, the Plan shall be  construed in accordance with and governed by the laws of the State of Delaware.                                             12Exhibit

LUXFER HOLDINGS PLC 
AMENDED AND RESTATED 
NON-EXECUTIVE DIRECTORS EQUITY INCENTIVE PLAN 
 
1. Purpose of the Plan 

The purpose of the Plan is to promote the interests of the Company and its shareholders, by allowing the Company to attract and retain highly qualified Non-Executive Directors by permitting them to obtain or increase their proprietary interest in the Company. 
 
2. Definitions 

As used in the Plan or in any instrument governing the terms of any Award, unless stated otherwise, the following definitions apply to the terms indicated below: 
 
(A)  “Award” means any Option, Restricted Stock, Restricted Stock Unit or Nil/Nominal Cost Right granted to a Participant pursuant to the Plan. 

(B) “Award Agreement” means any written agreement, contract or other instrument or document evidencing an Award. 

(C) “Beneficiary” means a person designated in writing by the Participant to receive any amounts due to the Participant hereunder in the event of the Participant’s death or, absent any such designation, the Participant’s estate.  Such designation, if any, must be on file with the Company prior to the Participant’s death. 

(D) “Board” means the Board of Directors of Luxfer. 

(E) “Cause” means (i) absence without the permission of the Board from meetings of the Board for three  consecutive full meetings, (ii) any prohibition by law from being a director, (iii) becoming bankrupt or making any formal arrangement or composition with the Participant’s creditors generally, (iv) commission of any serious or repeated breach or non-observance of the Participant’s obligations to the Company (which include an obligation not to breach directors’ statutory, fiduciary or common-law duties), or (v) any conduct involving fraud or dishonesty or acting in any manner which, in the opinion of the Company, brings or is likely to bring the Company into disrepute or is materially adverse to the interests of the Company. 
  
(F) “Change in Control” means, unless otherwise defined in the Award Agreement, the occurrence of any of the following after the Effective Date:  (i) any Person is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 40% or more of the combined voting power of the Company’s outstanding securities (other than any Person who was a “beneficial owner” of securities of the Company representing 40% or more of the combined voting power of the Company’s outstanding securities prior to the Effective Date); or (ii) dissolution or liquidation of the Company; or (iii) material reconstruction or significant demerger; or (iv) individuals who constitute the Board on the Effective Date (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board, provided that any person becoming a director subsequent to the Effective Date whose appointment to fill a vacancy or to fill a new Board position was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by the Company’s shareholders was approved by the same nominating committee serving under an Incumbent Board, shall be, for purposes of this clause (iv), considered as though he were a member of the Incumbent Board; or (v) the occurrence of any of the following of which the Incumbent Board does not approve: (A) merger or consolidation in which the Company is not the surviving corporation or (B) sale of all or substantially all of the assets of the Company; or (vi) consummation of a plan of reorganization, merger or consolidation of the Company with one or more corporations as a result of which the outstanding shares of the class of securities then subject to the plan of reorganization are exchanged or converted into cash or property or securities not issued by the Company, which was approved by shareholders pursuant to a proxy statement soliciting proxies from shareholders of the Company, by someone other than the then current management of the Company.   

(G) “Code” means the United States Internal Revenue Code of 1986, as amended from time to time, and all regulations, interpretations and administrative guidance issued thereunder. 

(H) “Committee” means the Board or such other committee as the Board may designate from time to time to administer the Plan and to otherwise exercise and perform the authority and functions assigned to the Committee under the terms of the Plan. 

(I) “Company” means Luxfer and all of its Subsidiaries, collectively. 

(J) “Effective Date” means October 2, 2012. 

(K) “Exchange Act” means the United States Securities Exchange Act of 1934, as amended from time to time. 

(L) “Exercise Price” means the price per Share at which a holder of an Option may purchase Shares. 

(M) “Fair Market Value” means, with respect to a Share, as of the applicable date of determination (i)  (x) for purposes of Sections 6 and 7(a) hereof, the closing price per Share on the trading day immediately preceding such date as reported on the New York Stock Exchange and (y) for all other purposes, the closing price per Share on that date as reported on the New York Stock Exchange (or if not reported,  the closing price per Share on the trading day immediately preceding such date as reported on the New York Stock Exchange) or (ii) if not so reported, as determined by the Committee in its sole discretion using a reasonable valuation method taking into account, to the extent applicable, the requirements of Section 409A of the Code. 

(N) “Luxfer” means Luxfer Holdings PLC, incorporated in England and Wales, and any successor thereto. 

(O) “Nil/Nominal Cost Right” means an equity-based award granted to a UK Participant pursuant to the UK Schedule to the Plan. 

(P) “Non-Executive Director” shall mean a member of the Board who is not an employee of the Company. 

(Q) “Option” means a right granted to a Participant pursuant to Section 7 to purchase a specified amount of Shares at an Exercise Price. 

(R) “Ordinary Shares” means Luxfer’s ordinary shares, nominal value £0.50 per share, or any other security into which the ordinary shares shall be changed pursuant to the adjustment provisions of Section 10 of the Plan. 

(S) “Participant” means a Non-Executive Director to whom one or more Awards have been granted pursuant to the Plan. 

(T) “Person” means a “person” as such term is used in Section 13(d) and 14(d) of the Exchange Act, including any “group” within the meaning of Section 13(d)(3) under the Exchange Act. 

(U) “Personal Data” means the name, home address, email address and telephone number, date of birth, social security number or equivalent of a Participant, details of all rights to acquire Shares or other securities or cash granted to the Participant and of Shares or other securities issued or transferred or cash paid to the Participant pursuant to the Plan and any other personal information which could identify the Participant and is necessary for the administration of the Plan. 

(V) “Plan” means this Luxfer Non-Executive Directors Equity Incentive Plan, as it may be amended from time to time. 

(W) “Restricted Stock” means Shares awarded to a Participant pursuant to Section 8 subject to a substantial risk of forfeiture 

(X) “Restricted Stock Unit” means a right to receive a number of Shares subject to the Award or the value thereof as of the specified date granted to a Participant pursuant to Section 9. 

(Y) “Securities Act” means the United States Securities Act of 1933, as amended. 

(Z) “Share” means an Ordinary Share. 

(AA) “Subsidiary” shall mean any entity of which a majority of the outstanding voting shares or voting power is beneficially owned directly or indirectly by Luxfer. 

(BB) “Transfer” means, with respect to any Award,  a transfer, sale, exchange, assignment, pledge, hypothecation or other encumbrance or disposition of such Award, whether for or without consideration.  “Transferee”, “Transferred” and “Transferability” shall have correlative meanings. 

(CC) “UIP” means the Luxfer Holdings PLC Long-Term Umbrella Incentive Plan, as it may be amended from time to time. 

(DD) “U.S.” shall mean the United States of America. 

3. Term; Stock Subject to the Plan 

(A) Term of the Plan 
Unless the Plan shall have been earlier terminated by the Company, Awards may be granted under the Plan at any time in the period commencing on the Effective Date and ending immediately prior to the tenth anniversary of the Effective Date.  Awards granted pursuant to the Plan within that period shall not expire solely by reason of the termination of the Plan. 
 
(B) Stock Subject to the Plan 
The maximum number of Shares that initially may be available for Awards under the Plan and awards under the UIP, in the aggregate, shall be a number equal to 1,360,820, which represents 5% of the outstanding share capital of Luxfer as of the Effective Date.  The maximum referred to in the preceding sentences of this paragraph shall be subject to adjustment as provided in Section 10.  The Board may, subject to any applicable law, from time to time increase the maximum number of Shares that may be available for Awards under the Plan.  The Company may satisfy its obligation to deliver Shares under the Plan in any manner permitted by law, including without limitation, by issuing new Shares that are authorized for issuance, using treasury shares or causing any trust to deliver Shares. 
  
For purposes of the preceding paragraph, Shares covered by Awards shall only be counted as used to the extent they are actually transferred or delivered to a Participant (or such Participant’s permitted transferees as described in the Plan) pursuant to the Plan.  For purposes of clarification, in accordance with the preceding sentence, if Shares are withheld to pay the Exercise Price of an Option or to satisfy any tax withholding requirement in connection with an Award, only the shares transferred or delivered (if any), net of the shares withheld or paid, will be deemed transferred or delivered for purposes of determining the number of Shares that are available for transfer and delivery under the Plan or the UIP.  In addition, if Shares are transferred or delivered subject to conditions which may result in the forfeiture, cancellation or return of such Shares to the Company, any portion of the Shares forfeited, cancelled or returned shall thereafter be treated as not transferred or delivered pursuant to the Plan.  In addition, if Shares owned by a Participant (or such Participant’s permitted transferees as described in the Plan) are tendered (either actually or through attestation) to the Company in payment of any obligation in connection with an Award, the number of Shares tendered shall be added to the number of Shares that are available for delivery under the Plan or the UIP.  Shares covered by Awards granted pursuant to the Plan in connection with the assumption, replacement, conversion or adjustment of outstanding equity-based awards in the context of a corporate acquisition or merger (within the meaning of Section 303A.08 of the New York Stock Exchange Listed Company Manual) shall not count as used under the Plan for purposes of this Section 3(b). 
 
(4) Administration of the Plan 
The Plan shall be administered by the Committee.  The Committee shall, consistent with the terms of the Plan, designate the type and other terms and conditions of Awards under the Plan.  
 
The Committee shall have full discretionary authority to administer the Plan, including discretionary authority to interpret and construe any and all provisions of the Plan and the terms of any Award (and any Award Agreement) granted thereunder and to adopt and amend from time to time such rules and regulations for the administration of the Plan as the Committee may deem necessary or appropriate.     
 
On or after the date of grant of an Award under the Plan, the Committee may (i) accelerate the date on which any such Award becomes vested, exercisable or transferable, as the case may be, (ii) extend the term of any such Award, including, without limitation, extending the period following a termination of a Participant’s directorship during which any such Award may remain outstanding, (iii) provide for the payments of dividends or dividend equivalents with respect to any such Award, or (iv) waive any conditions to the vesting, exercisability or transferability, as the case may be, of any such Award; provided that the Committee shall not have any such authority to the extent that the grant or exercise of such authority would cause any tax to become due under Section 409A of the Code or any other applicable law. 
 
Without limiting the generality of the foregoing, in order to assure the viability of Awards granted to Participants acting as a director of Luxfer in various jurisdictions, the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom applicable in the jurisdiction in which the Participant resides or acts as a director of Luxfer.  Moreover, the Committee may approve such supplements to, or amendments, restatements, or alternative version of, the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan for any other purpose. 
 
Decisions of the Committee shall be final, binding and conclusive on all parties. 
 

To the extent permitted by applicable law, (i) no member of the Committee shall be liable for any action, omission, or determination relating to the Plan, and (ii) the Company shall indemnify and hold harmless each member of the Committee and each other director or employee of the Company to whom any duty or power relating to the administration or interpretation of the Plan has been delegated against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out of any action, omission or determination relating to the Plan. 
 
5. Eligibility; Award Agreements; Non-Transferability 
 
(A) Non-Executive Directors of the Company shall be eligible to receive Awards pursuant to the Plan.  
 
(B) Each Award granted under the Plan shall be evidenced by an Award Agreement (which in the case of Options may be a simplified certificate of entitlement), in form and substance approved by the Committee.  Except as otherwise determined by the Committee, an Award may not be Transferred.   
 
6. Non-Discretionary Grants.   

Each calendar year during the term of the Plan, within 10 days of the Annual General Meeting, on a date determined by the Committee (the “Award Grant Date”), each Non-Executive Director who is acting as a director of Luxfer on the  Award Grant Date and who has at the Award Grant Date been acting as a director of Luxfer for at least six months after his or her initial appointment or election shall receive up to 55% of such director’s annual fee in Awards.  In the event a Non-Executive Director has not been acting as a director of Luxfer for at least six months on the Award Grant Date, the annual fee earned in that year and payable in Awards shall be included in the Awards in respect of the following calendar year. 

Subject to the Committee’s discretion, for purposes of the Plan, the Awards shall be valued as follows: (i) Options shall be valued at one-third of the Fair Market Value of Shares subject to the Award on the date of grant: (ii) Restricted Stock and Restricted Stock Units shall be valued at the Fair Market Value of Shares subject to the Award on the date of grant; and (iii) Nil/Nominal Cost Rights shall be valued at the Fair Market Value of Shares subject to the Award on the date of grant. 
 
7. Options 

Unless otherwise provided in the applicable Award Agreement, each Award of an Option granted under the Plan shall have the following terms and conditions: 

(A) Evidence of Grant 
 The Award Agreement evidencing the grants of Options shall include the amount of Shares subject to an Award, the Exercise Price, vesting conditions (as set forth below) and such additional provisions as may be specified by the Committee.  The Exercise Price per Share covered by any Option shall be not less than 100% of the Fair Market Value of a Share on the date of grant.  
 
(B) Vesting 
Each Option shall become vested and exercisable with respect to one-third of the Shares subject to the Award on each of the first three anniversaries from the date of grant provided the Participant is continuously acting as a director of Luxfer through each such respective anniversary.   

(C) Exercise Period 
No Option shall be exercisable after the expiration of ten years from the date it is granted.   

(D) Exercise of Options  
Each Option may, to the extent vested and exercisable, be exercised in whole or in part.  The partial exercise of an Option shall not cause the expiration, termination or cancellation of the remaining portion thereof.  An Option shall be exercised by such methods and procedures as the Committee determines from time to time, including without limitation through net physical settlement or other method of cashless exercise.  The Exercise Price of an Option must be paid in full when the Option is exercised.  For the avoidance of doubt, the preceding sentence will not prevent the Exercise Price being paid from the proceeds pursuant to the prompt sale of Shares acquired upon exercise or the Participant entering into other permissible arrangements, agreed by the Committee, for procuring payment of the aggregate Exercise Price. 

(E) Cessation of Directorship 
Subject to the discretion of the Committee, if the Participant ceases to be a director of Luxfer for any reason other than for Cause, (i) the portion of the Option that has not become vested or exercisable as of the date when the Participant ceases to be a director shall immediately lapse and (ii) except as otherwise provided in the Plan or in the applicable Award Agreement, the portion of the Option that is vested or exercisable as of the date when the Participant ceases to be a director will lapse on the first anniversary of such date to the extent not theretofore exercised .  If the Participant ceases to be a director of Luxfer because of removal or vacation of office for Cause, the Option, whether then vested or exercisable or not, shall immediately lapse on such cessation of directorship. 

8. Restricted Stock 

Unless otherwise provided in the applicable Award Agreement, each Award of Restricted Stock granted under the Plan shall have the following terms and conditions: 

(A) Grant of Restricted Stock  
At the time of grant, the Committee shall determine, in its discretion, the terms and conditions that will apply to Restricted Stock granted pursuant to this Section 8.  Restricted Stock shall vest with respect to one-third of the Shares subject to the Award on each of the first three anniversaries from the date of grant provided the Participant is continuously acting as a director of Luxfer through each such respective anniversary.  

(B) Issuance of Restricted Stock; Rights of Participants 
As soon as practicable after Restricted Stock has been granted, Restricted Stock shall be transferred to the Participant.  Shares of Restricted Stock may be evidenced in such manner as the Committee shall determine.  Except as otherwise determined by the Committee, the Participant will have all rights of a shareholder with respect to the Shares of Restricted Stock, including the right to vote and to receive dividends or other distributions, except that the Shares may be subject to a vesting schedule and forfeiture and may not be Transferred until the restrictions are satisfied or lapse.  The Committee may enforce any restrictions that the Committee may impose on Restricted Stock in such manner as the Committee shall determine, including legends, custody accounts or any other restrictions on transfer.   

(C) Dividends 
The Committee may provide that any dividends declared on the Restricted Stock before they are vested shall either (i) be reinvested in the form of additional Shares, which shall be subject to the same vesting provisions that apply to the Shares of Restricted Stock to which they relate, or (ii) be credited by the Company to an account for the Participant and accumulated with or without interest until the date upon which the Shares of Restricted Stock to which they relate become vested, and any dividends accrued with respect to forfeited Restricted Stock will be reconveyed to the Company without further consideration or any act or action by the Participant. In cased dividends are reinvested, the number of additional Shares shall be determined by first (i) multiplying the number of Shares of Restricted Stock subject to an Award on the dividend payment date by the per-Share dollar amount of the dividend so paid, and then (ii) dividing the resulting amount by the Fair Market Value of Shares on the dividend payment date, with the number of Shares rounded down to the nearest whole number and the cash balance remaining being carried forward and added to the dividend amounts (if any) paid on the next occasion. If Shares of Restricted Stock subject to an Award are forfeited, the additional Shares that relate to such Restricted Stock shall also be forfeited. 

(D) Cessation of Directorship 
Subject to the discretion of the Committee, if the Participant ceases to be a director of Luxfer for any reason,  all Shares underlying Restricted Stock that have not yet become vested as of the date the Participant ceases to be a director shall be immediately forfeited by the Participant and the Participant shall have no further rights with respect thereto. 

9. Restricted Stock Units 

Unless otherwise provided in the applicable Award Agreement, each Award of Restricted Stock Units granted under the Plan shall have the following terms and conditions: 

(A) Grant of Restricted Stock Units 
At the time of grant, the Committee shall determine, in its discretion, the terms and conditions that will apply to Restricted Stock Units granted pursuant to this Section 9.  Unless otherwise determined by the Committee, Restricted Stock Units shall vest with respect to one-third of the Shares subject to the Award on each of the first three anniversaries from the date of grant provided the Participant is continuously acting as a director of Luxfer through each such respective anniversary.   
 

(B) Dividend Equivalents 
The Committee shall provide for the payment of dividend equivalents with respect to Restricted Stock Units.  The Company shall credit the Participant with additional Restricted Stock Units as of each date on which the Company pays a cash dividend on Shares, the number of which shall be determined by first (i) multiplying the number of Restricted Stock Units subject to an Award on the dividend payment date by the per-Share dollar amount of the dividend so paid, and then (ii) dividing the resulting amount by the Fair Market Value of Shares on the dividend payment date.  Additional Restricted Stock Units shall be subject to the same restrictions, including but not limited to vesting, Transferability and payment restrictions, that apply to the Restricted Stock Units to which they relate.  If the Restricted Stock Units subject to an Award are forfeited, the additional Restricted Stock Units that relate to such Restricted Stock Units shall also be forfeited. 

(C) Form and Timing of Settlement 
Payment of earned Restricted Stock Units shall be made as soon as practicable after the date(s) determined by the Committee and set forth in the Award Agreement, provided that with respect to any Restricted Stock Units subject to Section 409A of the Code such payment will occur in a manner that would not cause any tax to become due under Section 409A of the Code.  Restricted Stock Units may be settled for cash, Shares, or a combination of both, as determined by the Committee and set forth in the Award Agreement.  The Committee may permit Participants to request the deferral of payment of vested Restricted Stock Units (including the value of related dividend equivalents, if any) to a date later than the payment date specified in the Award Agreement, provided that with respect to any Restricted Stock Units subject to Section 409A of the Code such deferral will be made in a manner that would not cause any tax to become due under Section 409A of the Code.   

(D) Cessation of Directorship. 
Subject to the discretion of the Committee, , if the Participant ceases to be a director of Luxfer for any reason, all Shares underlying Restricted Stock Units that have not yet become vested as of the date the Participant ceases to be a director shall be immediately forfeited by the Participant and the Participant shall have no further rights with respect thereto. 
 
10. Adjustment upon Certain Changes 

(A) Adjustment of Shares 
 If the number of outstanding Shares is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of Luxfer, without the fair market value consideration, then (i) the number of Shares available for Awards under the Plan and awards under the UIP set forth in Section 3, (ii) the Exercise Prices of and number of Shares subject to outstanding Options, (iii) the nominal value per Share, if applicable, and the number of Shares subject to other outstanding Awards,  may be proportionately adjusted, subject to any required action by the Board or the shareholders of the Company and in compliance with applicable securities laws and, to the extent applicable, Section 409A of the Code.  In addition, except insofar as the Board (on behalf of Luxfer) agrees to capitalize Luxfer’s reserves and apply the same in paying up any difference between the Exercise Price (or any amount payable per Share in relation to an Award) and the nominal value of the Shares, the Exercise Price (or other amount payable per Share in relation to an Award) of any Award over Shares that are to be newly issued by Luxfer in satisfaction of the Award shall not be reduced below a Share’s nominal value. 

(B)  Certain Mergers 
Subject to any required action by the shareholders of Luxfer, in the event that the Company shall be the surviving corporation in any merger, consolidation or similar transaction as a result of which the holders of Shares receive consideration consisting exclusively of securities of such surviving corporation, the Committee may, to the extent deemed appropriate by the Committee, adjust each Award outstanding on the date of such merger or consolidation so that it pertains and applies to the securities which a holder of the number of Shares subject to such Award would have received in such merger or consolidation. 

(C)  Certain Other Transactions 
In the event of (i) a dissolution or liquidation of Luxfer, (ii) a sale of all or substantially all of the Luxfer’s assets (on a consolidated basis), (iii) a merger, consolidation or similar transaction involving Luxfer in which Luxfer is not the surviving corporation or (iv) a merger, consolidation or similar transaction involving Luxfer in which Luxfer is the surviving corporation but the holders of Shares receive securities of another corporation and/or other property, including cash, the Committee shall, in its sole discretion, have the power to: 

(i)  cancel, effective immediately prior to the occurrence of such event, each Award (whether or not then exercisable), and, in full consideration of such cancellation, pay to the Participant to whom such Award was granted an amount in cash, for each Share subject to such Award equal to the value, as determined by the Committee in its reasonable discretion, of such Award, provided that with respect to any outstanding Option, such value shall be equal to the excess of (A) the value, as determined by 

the Committee in its reasonable discretion, of the property (including cash) received by the holder of a Share as a result of such event over (B) the Exercise Price of such Option; or 

(ii)  provide for the exchange of each Award (whether or not then exercisable or vested) for an award with respect to, as appropriate, some or all of the property which a holder of the number of Shares subject to such Award would have received in such transaction and, incident thereto, make an equitable adjustment as determined by the Committee in its reasonable discretion in the Exercise Price of the Award, or the number of shares or amount of  property subject to the Award or, if appropriate, provide for a cash payment to the Participant to whom such Award was granted in partial consideration for the exchange of the Award. 

(D)  Notice 
The Company shall give each Participant notice of an adjustment, substitution, cancellation or other action hereunder and, upon notice, such adjustment, substitution, cancellation or other action shall be conclusive and binding for all purposes.  Notwithstanding the foregoing, the Committee may, in its discretion, decline to take action under this Section 10 with respect to any Award if the Committee determines that such action would violate (or cause the Award to violate) applicable law or result in adverse tax consequences to the Participant or to the Company.   

(E) No Repricing 
Notwithstanding any provision of the Plan to the contrary, in no event shall (i) any repricing (within the meaning of U.S. generally accepted accounting principles or any applicable stock exchange rule) of Awards granted under the Plan be permitted at any time under any circumstances or (ii) any new Awards be granted in substitution for outstanding Awards previously granted to Participants if such action would be considered a repricing (within the meaning of U.S. generally accepted accounting principles or any applicable stock exchange rule). 

(F) No Other Rights 
Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger or consolidation of Luxfer or any other corporation.  Except as expressly provided in the Plan, no issuance by Luxfer of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of Shares or amount of other property subject to, or the terms related to, any Award. 

(G) Savings Clause 
No provision of this Section 10 shall be given effect to the extent that such provision would cause any tax to become due under Section 409A of the Code. 

11. Rights under the Plan 
No person shall have any rights as a shareholder with respect to any Shares covered by or relating to any Award granted pursuant to the Plan until the date of the transfer or delivery of Shares.  Except as otherwise expressly provided in Section 10, no adjustment of any Award shall be made for dividends or other rights for which the record date occurs prior to the date such Shares are transferred or delivered.  Nothing in this Section 11 is intended, or should be construed, to limit authority of the Committee to cause the Company to make payments based on the dividends that would be payable with respect to any Share if it were transferred or delivered or outstanding, or from granting rights related to such dividends. 

The Company may, but shall not have any obligation to, establish any separate fund or trust or other segregation of assets to provide for the satisfaction of Awards under the Plan.  
 
12. No Special Rights to Continue as a Director; No Right to Awards 
 
Neither the Plan, nor any Award Agreement nor action taken under the Plan, shall be construed as conferring upon a Participant any right to continue as a director of Luxfer, to be renominated by the Board or re-elected by the shareholders of Luxfer or shall interfere in any way with the right of Luxfer at any time to remove such Participant from his position as director or to increase or decrease the annual fees of any Non-Executive Director or change the portion thereof paid in cash or Awards. 
 
13. Securities Matters 
 
The Company shall be under no obligation to effect the registration pursuant to the Securities Act or any federal, state or non-U.S. securities laws of any Shares to be transferred or delivered hereunder or to effect similar compliance under any state laws.  Notwithstanding anything in the Plan to the contrary, the Company shall not be obligated to cause to be transferred or delivered 

any Shares pursuant to the Plan unless and until the Company is advised by its counsel that the transfer and delivery of Shares is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which Shares are traded.  The Committee may require, as a condition to the transfer and delivery of Shares pursuant to the terms hereof, that the recipient of such Shares make such covenants, agreements and representations, and that certificates, if any, evidencing such Shares, bear such legends, as the Committee deems necessary or desirable. 

The exercise of any Option granted hereunder shall only be effective at such time as counsel to the Company shall have determined that the transfer or delivery of Shares pursuant to such exercise is in compliance with all applicable laws and regulations and the requirements of any securities exchange on which Shares are traded.  The Company may, in its sole discretion, defer the effectiveness of an exercise of an Award hereunder or the delivery or transfer of Shares pursuant to any Award pending or to ensure compliance under federal, state, non-U.S. securities laws and the requirements of any securities exchange on which Shares are traded.  The Company shall inform the Participant in writing of its decision to defer the effectiveness of the exercise of an Award or the delivery or transfer of Shares pursuant to any Award.  During the period that the effectiveness of the exercise of an Option has been deferred, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto. 

The issue or transfer of any Shares under the Plan shall be subject to Luxfer’s Articles of the Association and to any necessary consents of any governmental or other authorities (in any jurisdiction) under any enactments or regulations from time to time in force.  The Participant shall comply with any requirements to be fulfilled in order to obtain or obviate the necessity of any such consent. 
 
14. Withholding Taxes 

(A) Payment of Taxes 
Participants shall be solely responsible for any applicable taxes imposed on the Participant by applicable law (including without limitation income, social security and excise taxes but excluding any taxes imposed in connection with the issuance of  Shares) and penalties, and any interest that accrues thereon, which they incur in connection with the receipt, vesting, settlement or exercise of any Award.  Notwithstanding any provision of the Plan to the contrary, in no event shall the Company or the Committee be liable to a Participant on account of an Award’s failure to (i) qualify for favorable U.S. or non-U.S. tax treatment or (ii) avoid adverse tax treatment under U.S. or non-U.S. law, including, without limitation, under Section 409A of the Code. 

(B) Cash Remittance 
Whenever Shares are to be transferred or delivered upon the exercise, grant or vesting of an Award, and whenever any cash amount shall become payable in respect of any Award, the Company shall have the right to require the Participant to remit to the Company in cash an amount sufficient to satisfy federal, state, local and/or non-U.S. withholding tax requirements, if any, attributable to such exercise, grant, vesting or payment prior to the delivery of Shares or recordation by the Company of the Participant or his or her nominee as the owner of such Shares or the effectiveness of the lapse of such restrictions or making of such payment.  In addition, upon any payment (including in Shares) with respect to any Award, the Company shall have the right to withhold from any payment required to be made pursuant thereto an amount sufficient to satisfy the federal, state, local and/or non-U.S. withholding tax requirements, if any, attributable to such exercise, settlement or payment. 

(C) Share Remittance 
At the election of the Participant, subject to the approval of the Committee, when Shares are to be transferred or delivered upon the exercise, grant or vesting of an Award, the Participant may tender to the Company a number of Shares that have been owned by the Participant for at least six months (or such other period as the Committee may determine) having a Fair Market Value at the tender date determined by the Committee to be sufficient to satisfy the minimum federal, state, local and/or non-U.S. withholding tax requirements, if any, attributable to such exercise, grant or vesting, but not greater than the minimum withholding obligations.  Such election shall satisfy the Participant’s obligations under Section 14(a) hereof, if any. 

(D) Share Withholding 
At the election of the Participant, subject to the approval of the Committee, when Shares are to be transferred or delivered upon the exercise, grant or vesting of an Award, the Company shall withhold a number of such Shares determined by the Committee to be sufficient to satisfy the minimum federal, state, local and/or non-U.S. withholding tax requirements, if any, attributable to such exercise, grant or vesting, but not greater than the minimum withholding obligations.  Such election shall satisfy the Participant’s obligations under Section 14(a) hereof, if any. 

15. Amendment or Termination of the Plan 
(a) The Board may at any time suspend or discontinue the Plan or revise or amend it in any respect whatsoever; provided, however, that to the extent that any applicable law, regulation or rule of a stock exchange requires shareholder approval in order 

for any such revision or amendment to be effective, such revision or amendment shall not be effective without such approval.  The preceding sentence shall not restrict the Committee’s ability to exercise its discretionary authority hereunder pursuant to Section 4 hereof, which discretion may be exercised without amendment to the Plan.  No provision of this Section 15 shall be given effect to the extent that such provision would cause any tax to become due under Section 409A of the Code.  Except as expressly provided in the Plan, no action hereunder may, without the consent of a Participant, reduce the Participant’s rights under any previously granted and outstanding Award.  Nothing in the Plan shall limit the right of the Company to pay compensation of any kind outside the terms of the Plan. 

(b) The Committee may amend or modify the terms and conditions of an Award to the extent that the Committee determines, in its sole discretion, that the terms and conditions of the Award violate or may violate Section 409A of the Code; provided, however, that (i) no such amendment or modification shall be made without the Participant’s written consent if such amendment or modification would violate the terms and conditions of any other agreement between the Participant and the Company and (ii) unless the Committee determines otherwise, any such amendment or modification of an Award made pursuant to this Section 15(b) shall maintain, to the maximum extent practicable, the original intent of the applicable Award provision without contravening the provisions of Section 409A of the Code.  The amendment or modification of any Award pursuant to this Section 15(b) shall be at the Committee’s sole discretion and the Committee shall not be obligated to amend or modify any Award or the Plan, nor shall the Company be liable for any adverse tax or other consequences to a Participant resulting from such amendments or modifications or the Committee’s failure to make any such amendments or modifications for purposes of complying with Section 409A of the Code or for any other purpose.  To the extent the Committee amends or modifies an Award pursuant to this Section 15(b), the Participant shall receive notification of any such changes to his or her Award and, unless the Committee determines otherwise, the changes described in such notification shall be deemed to amend the terms and conditions of the Award and the applicable Award Agreement. 

16. Transfers upon Death 
Upon the death of a Participant, to the extent provided in the applicable Award Agreement, (i) any outstanding Options granted to such Participant may be exercised only by the Beneficiary and (ii) any Restricted Stock granted to such Participant may only be transferred to the Beneficiary.  The Beneficiary, as a condition of such exercise or transfer, as the case may be, shall be bound in all respects by the provisions of the Plan and the applicable Award Agreement as if the Beneficiary were an original party thereto and by the acknowledgements made by the Participant in connection with the grant of the Award and all references in the Plan and the applicable Award Agreement to the Participant shall be deemed to refer to such Beneficiary.  Any attempt to Transfer an Award in violation of the Plan shall render such Award null and void. 

17. Change in Control 
Unless otherwise set forth in the Award Agreement, upon a Change in Control, each outstanding Award shall become fully vested and exercisable, as applicable, and all restrictions thereon shall lapse.  Except as otherwise provided in the Plan or in the applicable Award Agreement or as otherwise communicated to the Participants by the Committee in connection with the Change in Control, an Option shall lapse on the first anniversary of the Change in Control to the extent not theretofore exercised. 

18. Fractional Shares  
The Company shall not be required to issue any fractional Shares pursuant to the Plan.  The Committee may provide for the elimination of fractions or for the settlement thereof in cash.  

19. Nominal Value 
If determined by the Committee, the vesting/exercise of an Award and the issue of Shares pursuant to the Award will be subject to the payment of the aggregate nominal value of the underlying Shares by the Participant.  Any cash payment to be made to a Participant pursuant to Section 10(c)(i) of the Plan in consideration of the cancellation of an Award or an award that is provided in exchange for an Award pursuant to Section 10(c)(ii) of the Plan, shall where appropriate and if determined by the Committee, take account of the nominal value of the Shares subject to the Award. 

20. Section 409A Exemption 
All Awards under the Plan are intended to be exempt from Section 409A of the Code and shall be construed in accordance with the foregoing. 
 
21. Data Protection 
It shall be a condition of an Award that the Participant agrees and consents to: 
 

(A) The collection, use, processing and transfer of Participant’s Personal Data by the Company, any trustee or third party administrator of the Plan, the Company’s registrars, or any broker through whom Shares are to be sold on behalf of a Participant. 

(B) The Company, any trustee or third party administrator of the Plan, the Company’s registrars, or any broker through whom Shares are to be sold on behalf of a Participant transferring the Participant's Personal Data amongst themselves for the purposes of implementing, administering and managing the Plan and the grant of Awards and the acquisition of Shares pursuant to Awards, the disposal of such Shares or the making of any cash payment under the Plan. 

(C) The use of Personal Data by any such person for any such purposes; and 

(D) The transfer to and retention of Personal Data by third parties including any trustee or third party administrator of the Plan for or in connection with such purposes. 

22. Service of Documents 

(A) Except as otherwise provided in the Plan, any written notice or document to be given by, or on behalf of, the Company or any administrator of the Plan to a Participant in accordance or in connection with the Plan may be given by hand or sent by pre-paid first class mail (airmail if overseas), facsimile transmission or email to the Participant's home or work address, facsimile number or email address last known to the Company to be the Participant’s address, facsimile number or email address.  Subject to the paragraph (d) of this Section 22 any notice or document given in accordance with this Section 22 shall be deemed to have been given: (i) upon delivery, if delivered by hand; (ii) after 24 hours, if sent by mail; after 4 hours, if sent by facsimile transmission; and (iv) at the time of transmission, if sent by email except that  a notice or document shall not be duly given by email unless that person is known by the Company to have personal access during his normal business hours to information sent to him by email. 

(B) Any notice or document so sent to a Participant shall be deemed to have been duly given notwithstanding that such person is then deceased (and whether or not the Company has notice of his death) except where his personal representatives have supplied an alternative address to which documents are to be sent to the Company. 

(C) Any written notice or document to be submitted or given to the Company or any administrator of the Plan in accordance or in connection with the Plan may be given by hand or sent by pre-paid first class post (airmail if overseas), facsimile transmission or email but shall not in any event be duly given unless it is actually received by the Secretary of the Company or such other individual as may from time to time be nominated by the Company and whose name and address, facsimile number or email address is notified to the Participant. 

(D) For the purposes of the Plan, an email shall be treated as not having been duly sent or received if the recipient of such email notifies the sender that it has not been opened because it contains, or is accompanied by a warning or caution that it could contain or be subject to, a virus or other computer program which could alter, damage or interfere with any computer software or email. 

23. Third Party Rights 
Except as otherwise expressly stated to the contrary, neither the Plan nor the making of any Award shall have the effect of giving any third party any rights under the Plan pursuant to the UK Contracts (Rights of Third Parties) Act 1999 or otherwise and that Act shall not apply to the Plan or to the terms of any Award under it. 
 
24. Governing Law 

(a)   This Plan and any Award shall be governed by, and construed in accordance with, English law. 

(b)   Any person or persons referred to in the Plan shall: 
(i) submit to the exclusive jurisdiction of the English courts as regards any claim, legal action, dispute, difference or proceedings concerning an Award or any matter arising from, or in relation to, the Plan; 
(ii) waive personal service of any proceedings; 
(iii) agree that service on him or it of proceedings may be effected by registered mail to his or its address for service of notices under the Plan; and 
(iv) waive any objection to proceedings taking place in the English courts on the grounds of venue or that proceedings have been brought in an inconvenient forum.

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