Document:

Exhibit 10.11

 

DATED 5 July, 2004

 

 

CYCLACEL
GROUP PLC

 

- and -

 

OGIER
EMPLOYEE BENEFIT TRUSTEE LIMITED

 

 

TRUST
DEED

establishing
the Cyclacel Group Plc

Employee
Benefit Trust

 

 

 

ALLEN & OVERY LLP

LONDON

EP:274240.2

 

 

TRUST
DEED

establishing
the Cyclacel Group Plc

Employee
Benefit Trust

 

CONTENTS

 

	
  1.

  	
  Definitions

  	
   

  
	
  2.

  	
  The parties’ obligations

  	
   

  
	
  3.

  	
  Discretionary
  trust of capital and income

  	
   

  
	
  4.

  	
  Trusts at the
  expiration of the trust period

  	
   

  
	
  5.

  	
  Additions to the trust fund

  	
   

  
	
  6.

  	
  Waiver of dividends

  	
   

  
	
  7.

  	
  Investment powers

  	
   

  
	
  8.

  	
  Additional powers

  	
   

  
	
  9.

  	
  Power of resettlement

  	
   

  
	
  10.

  	
  Voting

  	
   

  
	
  11.

  	
  Personal interests of
  trustees

  	
   

  
	
  12.

  	
  Protection of trustee

  	
   

  
	
  13.

  	
  Changes of trustee

  	
   

  
	
  14.

  	
  Information supplied by
  any member of the group

  	
   

  
	
  15.

  	
  Power to amend

  	
   

  
	
  16.

  	
  Costs

  	
   

  
	
  17.

  	
  Receipts

  	
   

  
	
  18.

  	
  Remuneration of trustee

  	
   

  
	
  19.

  	
  Governing law

  	
   

  
	
  20.

  	
  Changing of Governing Law

  	
   

  
	
  21.

  	
  Irrevocability

  	
   

  
	
  22.

  	
  Exclusions and limitations

  	
   

  
	
  23.

  	
  Miscellaneous

  	
   

  
	
  24.

  	
  Counterparts

  	
   

  
	
  Schedule

  	
   

  

 

 

 

 

THIS DEED is made on 5 July, 2004

 

BETWEEN:

 

(1)                                  CYCLACEL GROUP PLC (registered number 5090795) whose registered
office is at 6-8 Underwood Street, London N1 7JQ (“the Company”) and

 

(2)                                  OGIER EMPLOYEE BENEFIT TRUSTEE LIMITED (registered number 78262)
whose registered office is at Whiteley Chambers, Don Street, St. Helier,
Jersey, JE4 9WG  (“the Original Trustee”).

 

WHEREAS:

 

(A)                              The Company has determined to establish a trust on the terms of this
Deed.

 

(B)                                The Original Trustee has agreed to act as the first trustee of the
Trust on the terms of this Deed.

 

(C)                                The Company has paid £100 to the Original Trustee to be held upon
the trusts declared in this Deed.

 

NOW
THIS DEED WITNESSES as follows:

 

1.                                      DEFINITIONS

 

1.1                                 In this Deed the following words and expressions shall bear the
respective following meanings unless the context otherwise requires:

 

	
  “Accumulation Period”

  	
   

  	
  the
  period beginning on the date of this Deed and ending upon the first to happen
  of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the
  expiry of twenty-one (21) years or such longer period as may be allowed by
  the law relating to accumulations for the time being in force in relation to
  this Deed; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  the
  date the Trustee declares by written notice to be the end of the Accumulation
  Period (not being a date earlier than the date of the notice);

  
	
   

  	
   

  	
   

  
	
  “Beneficiary

  	
   

  	
  a
  bona fide Employee or former Employee or the wife, husband, widow, widower,
  or child or step-child under the age of 18 of such Employee or former
  Employee;

  
	
   

  	
   

  	
   

  
	
  “Board”

  	
   

  	
  the
  board of directors of the Company for the time being or a duly constituted
  committee of that board;

  

 

 

	
  “Employee”

  	
   

  	
  an employee (including an executive
  director) of the Group from time to time;

  
	
   

  	
   

  	
   

  
	
  “Employees’ Share Scheme”

  	
   

  	
  has the meaning given in section 743
  of the Companies Act 1985;

  
	
   

  	
   

  	
   

  
	
  “Group”

  	
   

  	
  the Company and its Subsidiaries from
  time to time and references to a member of the Group shall be construed
  accordingly;

  
	
   

  	
   

  	
   

  
	
  “Property”

  	
   

  	
  any property, including any chose in
  action and any interest in real or personal property;

  
	
   

  	
   

  	
   

  
	
  “Shares”

  	
   

  	
  fully paid ordinary shares in the capital
  of the Company;

  
	
   

  	
   

  	
   

  
	
  “Subsidiary”

  	
   

  	
  a company as defined in section 736
  of the Companies Act 1985;

  
	
   

  	
   

  	
   

  
	
  “Trust”

  	
   

  	
  the trust established by this Deed as for
  the time being amended and known as “Cyclacel Group Plc Employee Benefit Trust”;

  
	
   

  	
   

  	
   

  
	
  “Trustee”

  	
   

  	
  the Original Trustee or such other
  trustee or trustees for the time being of the Trust;

  
	
   

  	
   

  	
   

  
	
  “Trust Fund”

  	
   

  	
  shall comprise:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the sum of £100 referred to in Recital
  (C); and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  Property at any time added to it by way
  of accumulation of income, capital accretion, payment, transfer, gift, loan
  or otherwise; and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  all money, investments and other Property
  representing or derived from (a) and (b) respectively;

  
	
   

  	
   

  	
   

  
	
  “Trust
  Period”

  	
   

  	
  the period beginning with the date of
  this Deed and ending on the first to happen of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the expiry of seventy-nine (79) years
  from the date of this Deed; or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  the date when an order for the winding-up
  of the Company is made or a resolution is passed for the voluntary winding-up
  of the Company (otherwise than for the purposes of, and followed by, an
  amalgamation or reconstruction in such circumstances that substantially the
  whole of the undertaking, assets and liabilities of the Company pass to a
  successor company which becomes the

  

 

2

 

	
   

  	
   

  	
   

  	
  Company
  for the purposes of this Deed as envisaged in the definition of “Company”);
  or

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)

  	
  the
  date the Trustee declares by deed to be the end of the Trust Period (not
  being a date earlier than the date of the deed);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and
  so that a period of eighty (80) years from the date of this Deed shall be the
  perpetuity period for the purposes of section 1 of the Perpetuities and
  Accumulations Act 1964.

  

 

1.2                                 Words and expressions not otherwise defined herein have the same
meaning they have in the Income and Corporation Taxes Act 1988.

 

1.3                                 Where the context admits or requires references to the singular
shall include the plural and vice versa and references to the masculine shall
include the feminine.

 

1.4                                 Reference in this deed to any statutory provisions are to those
provisions as amended, extended or re-enacted from time to time and shall
include any regulations made under them. 
The Interpretation Act 1978 shall apply to this Deed as if it were an
Act of Parliament.

 

1.5                                 The headings in this Deed are for the sake of convenience only and
should be ignored when construing the Deed.

 

2.                                      THE PARTIES’ OBLIGATIONS

 

The Trustee and the Company shall procure that the
Trust constitutes and remains part of an Employees’ Share Scheme and a trust
for the benefit of employees, as that term is described in section 86 of
the Inheritance Tax Act 1984.

 

3.                                      DISCRETIONARY
TRUST OF CAPITAL AND
INCOME

 

3.1                                 Subject to the provisions of Clauses 3.3 and 7, the Trustee shall
hold the Trust Fund on trust for all or any one or more of the Beneficiaries in
such shares and on such trusts and subject to such powers and provisions as the
Trustee shall during the Trust Period in its discretion by any deed or deeds
revocable during the Trust Period or irrevocable appoint.

 

3.2                                 Subject to Clauses 3.1 and 3.3, the Trustee shall during the Trust
Period hold the Trust Fund on trust to pay or apply the income and may apply
the capital of the Trust Fund to or for the benefit of all or any of the
Beneficiaries in such shares and in such manner as the Trustee thinks fit
PROVIDED THAT the Trustee may during the Accumulation Period, if it thinks fit,
accumulate the whole or any part of the income of the Trust Fund by investing
it in any investments authorised by this Deed and adding the accumulations to
the Trust Fund.

 

3.3                                 The Trust Fund shall be divided into as many sub-funds as shall be
required by Clause 3.3.1 below so that on receipt by the Trustee of any asset
forming part of the Trust Fund that asset shall be allocated to and held on
trust only for the purposes of the relevant sub-fund so that:

 

3.3.1        all
assets contributed by any one member of the Group and all income and other
assets derived from those assets shall be allocated to a single sub-fund;

 

3

 

3.3.2        the
assets of any single sub-fund shall be held upon trust for, and may be
transferred, paid or applied only to or for the benefit of those Beneficiaries
whose membership of the class of Beneficiaries as a whole results from their
employment or former employment by the member of the Group to which the
sub-fund relates (or their relationship to such Beneficiaries);

 

3.3.3        in
accordance with Clauses 3.1 and 3.2 above, the trusts established by this Deed
shall have effect as if every reference to the Trust Fund were a reference to
each of the sub-funds severally or any of them as the context may require or
permit and every reference to a Beneficiary, the Beneficiaries or any of them
were a reference to the same as defined in relation to each such sub-fund or
any of them pursuant to paragraph 3.3.2 above; and

 

3.3.4        any asset
contributed other than by a member of the Group shall not be allocated to a
sub-fund and any asset contributed by the Company may or may not be allocated
to a sub-fund and the Company shall direct the Trustee whether or not to
allocate funds contributed by the Company to a sub-fund.

 

3.4                                 No power, authority or discretion conferred on the Trustees by this
Deed or by law shall (notwithstanding anything to the contrary expressed or
implied in this Deed) be exercisable so as to cause:

 

3.4.1        any part
of the Trust Fund to become applicable for the benefit of any member of the
Group except that the Trustee shall be empowered to repay out of the Trust Fund
all loans to the Trustee made by any member of the Group;

 

3.4.2        a breach
of Clause 2;

 

3.4.3        an
infringement of the rule against perpetuities.

 

3.5.                              Without prejudice to the rest of this Clause 3, the Trustee may
operate the Trust in conjunction with any Employees’ Share Scheme operated by
the Company or may itself operate Employees’ Share Schemes under the
Trust.  Where the Trustee grants options
which may be options to subscribe for Shares in accordance with the rules of an
Employees’ Share Scheme, the limits on the number of Shares which the Trustee
may subscribe will be prescribed by the rules of that Employees’ Share Scheme.

 

4.                                      TRUSTS AT THE EXPIRATION OF THE TRUST PERIOD

 

4.1.                              At the expiry of the Trust Period, the Trustee shall hold the Trust
Fund (after paying or providing for any costs, charges or expenses incurred or
to be incurred by the Trustee) UPON TRUST:

 

4.1.1        for such
of the Beneficiaries then living and in such proportions as the Trustee decides
before the end of the Trust Period; or

 

4.1.2        in
default of any decision by the Trustee before the end of the Trust Period,

 

(i)                                     for
all of the Employees then living in equal shares, or

 

4

 

(ii)                                  if there are no Employees at that time, for such charity or
charities as may then be decided by the Trustee, and in default of such
decision, for charitable purposes generally.

 

4.2                                 There shall be no resulting trust in favour of any member of the
Group at the expiration of the Trust Period.

 

5.                                      ADDITIONS TO THE TRUST FUND

 

The Trustee may at any time receive any gift or
donation, whether of money or other Property, from any person, company or corporation,
to be held as an addition to the Trust Fund. 
Any additions to the Trust Fund shall (in the absence of any contrary
direction from the donor) be held by the Trustee on the trusts declared in this
Deed.

 

6.                                      WAIVER OF DIVIDENDS

 

Until the Company directs the Trustee otherwise, the
Trustee shall waive its entitlement to dividends on Shares comprised in the
Trust Fund.

 

7.                                      INVESTMENT POWERS

 

7.1                                 The Trust Fund or any part of it may, at the Trustee’s discretion,
be:

 

7.1.1        applied
in the acquisition or disposal of Shares from any person, or in the acquisition
or disposal of securities issued by the Company or any member of the Group;

 

7.1.2        placed on
current or deposit account with any bank or financial institution which is an
authorised institution for the purposes of the Banking Act 1987 or a bank or
financial institution established and operating in the Channel Islands or the
Isle of Man or invested in negotiable instruments issued by any such bank or
financial institution;

 

7.1.3        invested
in fixed-interest Government securities of the United Kingdom or any local
authority thereof;

 

7.1.4        applied
in the acquisition or disposal of such assets or Property of whatever nature
and whereever situated and whether involving liabilities or producing income or
upon personal credit with or without security; or

 

7.1.5        applied
in the acquisition of any reversionary interest or any other investments not
producing income or of a wasting nature,

 

so that the Trustee shall have the same full and
unrestricted powers of investing the Trust Fund as if it were the absolute
beneficial owner of it PROVIDED THAT (i) the Trustee shall not be required to
invest, or to invest at interest, the Trust Fund or any part of it, and in the
event that it does invest in a non-interest bearing account, it shall not be
liable for any loss arising from such investment; and (ii) the Trustee may not
exercise its investment powers so as to cause the Trust to be a collective
investment scheme (as defined under section 235 of the Financial Services
& Markets Act 2000).

 

5

 

7.2                                 The Trustee shall not be obliged to:

 

7.2.1        diversify
the investment of the Trust Fund;

 

7.2.2        become a
director or officer, or interfere in the management or affairs, of the Company
or any company any of the shares or stock of which are, for the time being,
comprised in the Trust Fund, even if the Trustee has (whether directly or
indirectly) a substantial holding in or control of any such company; or

 

7.2.3        seek
information about the affairs of any such company, but may leave the conduct of
its affairs to its directors or other persons managing the company (so long as
the Trustee has no notice of any act of dishonesty on the part of such
directors or others in connection with the management of the company).

 

7.3                                 The Trust Fund shall be held in the name of, or to the order of, the
Trustee.  The Trust Fund or any part may
be held in the name of a nominee or nominees for and on behalf of the Trustee
on such terms as the Trustee shall decide. 
The Trustee shall have power to pay such nominee or nominees reasonable
fees for their services.

 

8.                                      ADDITIONAL POWERS

 

In addition to the powers vested in trustees by law or
statute, the Trustee shall, subject to Clauses 2, 3.3 and 3.4, have the additional
powers regarding the Trust Fund set out in the Schedule to this Deed,
which shall be separate powers.  The
Trustee may exercise all or any of the additional powers, without the
intervention of any Beneficiary, in such manner and to such extent as it thinks
fit.

 

9.                                      POWER OF RESETTLEMENT

 

9.1           The
Trustee may, subject to Clauses 3.3, 3.4 and 9.2, if it thinks fit, at any time
during the Trust Period, transfer the Trust Fund or any part of it into the
names or the legal control of the trustees or trustee (whether resident in the
United Kingdom or abroad) of and for the purposes of any settlement or trust
(the “Transferee
Settlement”) administered and taking effect in any part of the world
and governed, as its proper law, by the law of that or any other part of the
world.  Any Property transferred shall
be held upon the trusts and with and subject to the powers and provisions of
the Transferee Settlement, free of all the trusts, powers and provisions of
this Deed.

 

9.2           No
transfer pursuant to Clause 9.1 shall be made:

 

9.2.1        if it
offends any applicable rules against perpetuities or excessive accumulations;

 

9.2.2        unless
the Trustee (whose decision shall be final and binding on all persons
beneficially interested under this Deed) are satisfied that the Transferee
Settlement:

 

9.2.2.1                     is such that the transfer will only be for the benefit of some or
all of the Beneficiaries;

 

9.2.2.2                     is fully enforceable in law, for which purpose the Trustee shall be
entitled to rely on advice received from professional advisers 

 

6

 

practising in the territory where the Transferee
Settlement is intended to take effect; and

 

9.2.2.3                     will constitute a trust for the benefit of employees, as that term
is described in section 86 of the Inheritance Tax Act 1984.

 

10.                               VOTING

 

The Trustee shall abstain from voting any Shares held
in the Trust Fund at any general meeting of the Company. If any offer is made
to the holders of Shares to acquire their Shares then:

 

(a)                                  the Trustee shall not be obliged to accept or reject the offer in
respect of any Shares which are at that time subject to subsisting options, but
shall have regard to the interests of the optionholders and shall have power to
consult them to obtain their views on the offer, and

 

(b)                                 subject to (a) above, the Trustee shall take the action with respect
to the offer it thinks fair.

 

11.                               PERSONAL INTERESTS OF TRUSTEES

 

11.1         Subject
to Clause 11.2, no decision of or exercise of a power by the Trustee shall be
invalidated or questioned on the grounds that the Trustee or any individual
Trustee or any director or other officers of a corporate Trustee had a direct
or personal interest in the result of any decision or in the exercising of any
power and any such person may vote in respect of the decision or exercise of
power and be taken into account for the purposes of a quorum, notwithstanding
his interest.

 

11.2                           If the interest of the Trustee or other person concerned for the
purposes of Clause 11.1:

 

11.2.1      arises
otherwise than solely because the Trustee or other person concerned is a
Beneficiary or a director or other officer or shareholder of any member of the
Group; and

 

11.2.2      is
material,

 

then the nature of the interest must (unless otherwise
agreed) have been declared at the meeting of the Trustee (or if there is a sole
corporate Trustee, the meeting of the board of directors of the sole Trustee)
at which the item of business to which the interest relates was discussed or,
if the Trustee or other person concerned was not present at that meeting, at
the next meeting of the Trustee (or next meeting of the board of directors of
the sole corporate Trustee, as appropriate) at which he was present.

 

11.3         A
Trustee (or director or other officer of a corporate Trustee) who is or becomes
a Beneficiary may retain and not be liable to account for any benefits to which
he becomes entitled under this Deed. 
The exercise of any power or discretion by any such person shall not be
invalidated or questioned on the grounds that he had a direct or indirect
interest in it.

 

11.4         A
Trustee or any director or other officer of a corporate Trustee shall not be
precluded from acquiring, holding or dealing with debentures, debenture stock,
shares or securities whatsoever of any member of the Group or from entering
into or being interested in any 

 

7

 

contract or other transaction with any member of the
Group and none of them shall be liable to account to any member of the Group or
the Beneficiaries for any profits made or benefits obtained in connection with
the acquisition, contract or transaction.

 

11.5                           Any Trustee or any employee, director or officer of a corporate
Trustee may be employed and remunerated as a director or other officer or
employee or as agent or adviser of any corporation, body or firm connected with
the Trust Fund and may keep as his property any remuneration, fees or profits
received by him in any such capacity, notwithstanding that his situation of
office may have been obtained, held or retained by means or by reason of his
position as one of the Trustee or as an employee, director or officer of a
corporate Trustee.

 

12.                               PROTECTION OF TRUSTEE

 

12.1                           Neither the Trustee nor any employee, director or other officer of a
corporate Trustee nor any member of any committee appointed by the directors of
a corporate trustee nor any delegate of the Trustee (unless remunerated for so
acting) shall be liable for any loss, arising by reason of any mistake or
omission made in good faith or by reason of any other matter or thing including
negligence, fraud or the default of any agent employed or delegate or nominee
appointed, unless the loss results from wilful and individual fraud or default
on the part of the Trustee, employee, director, officer, committee member or
delegate whom it is sought to make liable or, in the case of a delegate
remunerated for so acting as part of a business carried on by him, from any
negligent act or omission by him.

 

12.2                           The Company shall keep the Trustee and each director, officer or
employee of any corporate trustee fully indemnified against any actions,
claims, costs, demands, expenses and all other liabilities to which it shall as
Trustee be or become liable by virtue of any act, event or thing unless such
actions, claims, costs, demands, expenses and other liabilities shall be
attributable to fraud, misconduct or negligence on the part of the Trustee who
or which is sought to be made liable save, in each case, to the extent that the
same is capable of being discharged from the Trust Fund.  In addition, the Trustee shall have the
benefit of all the powers, privileges and immunities conferred upon trustees by
statute or by law.

 

12.3                           Unless the Trustee shall agree otherwise, the Trustee shall not be
liable to provide benefits under the Trust which in aggregate exceed the value
of the Trust Fund from time to time.

 

13.                               CHANGES OF TRUSTEE

 

13.1         The
minimum number of persons to be the Trustee (or of any part of the Trust Fund
in respect of which a separate set of trustees has been appointed) shall be:

 

13.1.1                  one, in the case of a corporate Trustee; or

 

13.1.2                  two, in any other case.

 

13.2         So long
as the number of persons acting as the Trustee is below the minimum number, a
continuing Trustee shall not be entitled to exercise any discretion or power
under this Deed.

 

13.3         Any
Trustee may, at any time, by written notice given to the Company and any
co-trustee retire from his office at the expiry of one month from the date when
the notice is received by the Company (or any shorter period agreed in writing
by the Company) PROVIDED THAT this power shall not be exercised unless,
immediately after its exercise, there will be, as Trustee (whether by virtue of
an appointment taking effect immediately on the retirement or 

 

8

 

otherwise), at least the minimum number of persons
required by Clause 13.1 to be the Trustee.

 

13.4         If the
Company receives a notice of retirement from a sole corporate Trustee, the
Company shall appoint a person to act as Trustee with effect from no later than
the date on which the sole corporate Trustee’s 
retirement takes effect and if the Company does not appoint a new
Trustee before the expiry of one month from the date notice is received by the
Company, that sole corporate Trustee may appoint a person to act a Trustee on
the expiration of that notice.

 

13.5         The
Company shall have power by deed:

 

13.5.1      to remove
from office any Trustee without assigning any reason for the removal PROVIDED
THAT:

 

13.5.1.1                     this power shall not be exercised unless, immediately after its
exercise, there will be, as Trustee (whether by virtue of an appointment taking
effect immediately upon the removal or otherwise), at least the minimum number
of persons required by Clause 13.1 to be the Trustee; and

 

13.5.1.2                     the Company shall give any Trustee no less than 14 days’ notice in
writing before exercising this power to remove the Trustee from office;

 

13.5.2      to appoint
a person or persons in the place of any Trustee who, for any reason, ceases to
be a Trustee and whether or not the number of persons acting as Trustee is
below the minimum number required by Clause 13.1 prior to such appointment; and

 

13.5.3      to appoint
(without limitation as to number) an additional Trustee.

 

13.6                           In the event that the number of persons acting as Trustee falls
below the minimum number required by Clause 13.1, the Company shall immediately
appoint the number of new or additional trustees necessary to comply with the
requirements of Clause 13.1.

 

13.7                           Any person (including any other corporation and any director,
officer or employee of the Company or any of its subsidiaries) may be
appointed, on the terms and conditions the Company agrees with that person, as
a Trustee, wherever that person is domiciled or resident or (being a
corporation) is incorporated or carries on business.

 

13.8                           A retiring or removed Trustee will execute all transfers or other
documents and do all acts necessary for vesting the Trust Fund in new or
continuing Trustees PROVIDED THAT a retiring or removed Trustee who is in any
way liable under this Deed shall not be bound to transfer the Trust Fund unless
reasonable security is provided for indemnifying that Trustee against the
liability.

 

13.9                           Unless there is a sole corporate Trustee, this Clause 13.8 shall
govern the proceedings of the Trustee:

 

13.9.1      subject to
Clause 17.1, the trusts, powers and discretions vested by this Deed in the
Trustees must be exercised by all the Trustee; and

 

13.9.2      unless
otherwise agreed by the Trustee, a resolution in writing signed by all the
Trustee (whether on the same document or in counterparts) shall be as valid as
if it has been passed at a meeting of the Trustee.

 

9

 

14.                               INFORMATION SUPPLIED BY ANY MEMBER OF THE GROUP

 

The Trustee shall be entitled to rely, without further
enquiry, on all information supplied to it by any member of the Group.

 

15.                               POWER TO AMEND

 

15.1                           Subject to Clause 15.2, during the Trust Period the Trustee shall
have power by deed to amend, restrict, release or extend the trusts, powers and
provisions of this Deed in any manner.

 

15.2                           No exercise of the power contained in Clause 15.1 may:

 

15.2.1      have the
effect of breaching, or removing the restrictions contained in Clause 3.4;

 

15.2.2.     extend the
power conferred by Clause 15.1 or remove the restrictions contained in this
Clause 15.2;

 

15.2.3      alter or
affect the rights of any person accrued prior to the date of the amendment
except with the prior consent in writing of that person; or

 

15.2.4      invalidate
any prior payment or application of the Trust Fund or affect any part of the
Trust Fund to which any person has previously become absolutely entitled; or

 

15.2.5      be made
without the Trustee first having notified the Company a reasonable time (being not
less than 21 days) in advance of the proposed amendment, restriction or
extension.

 

15.3                           Every power, authority or discretion conferred upon the Trustee or
any other person and not expressly made exercisable only during a period
allowed by law shall (notwithstanding anything to the contrary expressed or
implied in this Deed) only be exercisable during the Trust Period and during
further period (whether definite or indefinite) that the law allows in respect
of the particular power, authority or discretion.

 

16.                               COSTS

 

16.1                           All costs charges and expenses of and incidental to the preparation,
operation and determination of the Trust (including any stamp duty and stamp
duty reserve tax payable by and remuneration of the Trustee) shall be payable
by the Company to the extent not paid by the Trustee under the provisions of
this Deed.

 

16.2                           The Company may from time to time determine that some or all of the
costs, charges and expenses of the administration of the Trust or management of
the Trust Fund shall be met by any member of the Group in such proportions as
the Company shall determine;

 

16.3                           The Trustee may, notwithstanding Clause 16.2, pay from the Trust
Fund all of the costs, charges and expenses of the administration of the Trust
or the management of the Trust Fund but no cost, charge or expense shall be
paid more than once.  The Company shall
reimburse 

 

10

 

the Trustee for payment of any cost, charge or expense
paid by the Trustee which the Company or any of its Subsidiaries were liable to
pay under Clause 16.2.

 

17.                               RECEIPTS

 

17.1                           The Trustee may from time to time, in writing, authorise any one or
more of its number or such other person(s) as it thinks fit to make any
payments or transfers of Property and to give receipts and discharges for any
Property payable, transferable or deliverable to the Trustee.  Every receipt or discharge shall be as valid
as if given by the Trustee.

 

17.2                           The production of a written authority of the Trustee given under
Clause 17.1 shall be a sufficient protection to any person taking any receipt
or discharge mentioned in Clause 17.1 and (unless that person received express
notice in writing of the revocation of the authority) he shall be entitled to
assume and act on the assumption that the authority remains unrevoked.

 

18.                               REMUNERATION OF TRUSTEE

 

18.1                           Any corporate Trustee shall act in accordance with the terms and
conditions it has agreed with the Company and shall be entitled to
reimbursement of its proper expenses as well as remuneration for its services
as Trustee.

 

18.2.                        Any individual Trustee, being a person engaged in any profession or
business (but not being an Employee or former Employee), shall be entitled to
be paid all usual professional or proper charges for the business transacted,
time expended and acts done by him or his firm in connection with the Trust,
including acts which a trustee, not being in any profession or business, could
have done personally.

 

18.3                           Any corporate Trustee:

 

18.3.1      may
transact, in its own office, on behalf of the Trust or any Beneficiary, any
business which by its constitution it is authorised to undertake and in which
it is then ordinarily engaged, on the same terms as would be made with an
ordinary customer and, if it is a bank, it shall be entitled to act as a banker
to and make advances to the Trustee in connection with the Trust, without
accounting for any profit made by so acting and in all respects as if it were
not a Trustee; and

 

18.3.2      may employ
as a banker, investment adviser or other agent, on behalf of the Trust, any
corporation, firm or enterprise associated with it PROVIDED THAT the agent is
authorised to undertake the business for which it is employed and is ordinarily
engaged in that business and that all charges made by it for work done or
services provided in connection with the Trust are reasonable and normal.

 

19.                               GOVERNING LAW

 

The Trust shall be construed in accordance with
English law.

 

20.                               CHANGING OF GOVERNING LAW

 

Notwithstanding anything hereinbefore contained the
Company may at any time during the Trust Period declare by deed that the trust
powers and provisions of this Deed shall from the date of the declaration take
effect with the necessary modifications specified in the said deed 

 

11

 

in accordance with the law of the territory specified
in the Deed.  As from the date of the
declaration the law of that other territory shall be the law applicable to this
Deed and the Courts in that other territory shall be the forum for the
administration of the Trust but subject to the powers conferred by this Clause
and until any further declaration is made under this Deed.  This power shall not be exercisable in any
manner which might cause this Deed under the law applicable to it to become
illegal void or voidable or which might in any way change the beneficial
interests under it.

 

21.                               IRREVOCABILITY

 

The trusts declared in this Deed are irrevocable.

 

22.                               EXCLUSIONS AND LIMITATIONS

 

Subject to Clause 3.4.1, no trust, discretion or power
conferred on the Trustee by this Deed or by law shall be exercised and no
provision of this Deed shall operate at any time so as to cause the whole or
any part of the Trust Fund to be paid, lent, applied or transferred to or for
the benefit of any member of the Group.

 

23.                               MISCELLANEOUS

 

23.1         No
benefits or rights under this Deed are capable of being assigned, charged or
alienated in any way and no payment shall be made in respect of any benefit or
right if the person entitled thereto shall, to the knowledge of the Trustee,
have purported to assign or charge the same or any part of it or any interest
in it, or if the Trustee knows of any act or event as a consequence of which
the benefit or right or any part of or interest in if belonging to that person
absolutely would have become vested in or charged in favour of any person or
persons other than that person or his legal personal representatives.  Subject to Clauses 2 and 3, the Trustee
shall have full discretion as to the payment or application of any benefit
forfeited to or for the benefit of such person.

 

23.2         Any
notice to be given to a Beneficiary may be served by being handed to the
Beneficiary personally, by being sent by first class post to the Beneficiary at
his or her last known private postal address or by such other method as the
Trustee considers appropriate.  Any
notice served by post shall be deemed to have been served on the fourth day
(excluding Sundays and statutory holidays) next following the date of posting
and, in proving such service, it shall be sufficient proof that the Trustee
reasonably believes that the envelope containing the notice was properly
addressed and posted as a prepaid letter by first class post.

 

23.3         Each
power and discretion given to the Company in this Deed (whether alone or
jointly with any other person) is given to it for its own benefit and not in a
fiduciary capacity.  The Company may
exercise, or refrain from exercising, its powers under this Deed at its
discretion.

 

23.4         Any
person entitled to or claiming any benefit under the Trust shall produce any
evidence and information required by the Trustee or the Company for the
purposes of the Trust.  Payment of any
benefit under the Trust to any person shall be conditional upon production by
that person of any evidence or information that the Trustee or the Company may
require.

 

23.5         The
Trustee shall be entitled to deduct from any benefit payable any tax or duty
for which the Trustee is liable in respect of the benefit concerned.

 

12

 

23.6         The
Trustee shall not be accountable in respect of or obliged to see to the
application of any payment made in accordance with this Deed if it is made:

 

23.6.1      to a minor
direct or to his parent or guardian or to the person with whom he resides; or

 

23.6.2      to any
individual or institution who or which is or appears to be responsible for the
care of a person to whom the payment may be made under this Deed if the Trustee
considers that that person’s incapacity does not warrant their making the
payment to him direct.

 

23.7         The
Company consents to the Trustee disclosing to any agent nominee bank or other
person appointed to act on behalf of the Trustee at any time:

 

23.7.1                   the identity of the Company as settlor of the Trust; and

 

23.7.2                  any other information relating to the Trust and requested for the
purposes of identification or otherwise,

 

where such request is in the Trustee’s absolute
discretion, reasonable.

 

24.                               COUNTERPARTS

 

This Deed may be executed by the parties to it as separate
counterparts, each of which, when executed, shall be as original.  The counterparts shall together constitute
one and the same instrument.

 

13

 

SCHEDULE

 

Additional Powers of
Trustee

 

(Clause 8)

 

1.                             Power to promote, alone or with others, and to approve, concur or
acquiesce in, or agree to carry into effect, alone or with others, any scheme,
proposal or offer for or leading to or being a step in:

 

(a)                        the issue or sale of shares in the Company or any member of the
Group to any persons; or

 

(b)                       the reconstruction or amalgamation with any other company or
corporation of any company or corporation in whose securities the Trust Fund or
any part of it shall be invested; or

 

(c)                        the alteration of the rights attached to any investments or other
Property forming part of the Trust Fund or attached to any Property whatever
having rights affecting any such investments or other Property; or

 

(d)                       the exchange of any investments or other Property forming part of
the Trust Fund for any other investments or other Property.

 

2.                             Power, subject to Clause 3.3, to grant options to any Beneficiary to
acquire some or all of the assets of the Trust Fund.  The Trustee shall be entitled to determine the consideration for
the grant of any options and the price at which options may be exercised.

 

3.                             Power, subject to Clause 3.3, to apply the Trust Fund or any part of
it in paying any stamp duty or stamp duty reserve tax payable in respect of any
transfer of or agreement to transfer Shares to any Beneficiary.

 

4.                             Power to borrow moneys or otherwise receive credit from any person,
corporation or company for any purpose on such terms as the Trustee thinks fit
and whether on the security of the Trust Fund, or any part of it, or on
personal security only or without security. 
The Trustee may provide for the repayment of borrowings or credit or the
payment of any associated costs out of the Trust Fund.

 

5.                             Power to pay any duties or taxes (together with any related
interest, penalties or surcharges) for which the Trustee becomes liable on
behalf of the Trust in any part of the world notwithstanding that the liability
may not be enforceable through the courts of the place where the trusts
declared in this Deed are at that time administered and to have discretion as
to the time and manner in which any duties or taxes are paid.  No person interested under this Trust shall
be entitled to make any claim against the Trustee by reason of its making
payment of any tax or duties.

 

6.                             Power to arrange for any member of the Group to account to the
Inland Revenue or other authority concerned for any amounts deducted from the
sums of money paid or credited to the Trustee by any member of the Group; or
from or in respect of any amounts paid or Property 

 

 

transferred by the Trustee under Clauses 3 or 4 to
Beneficiaries in respect of income tax or any other deductions required by law.

 

7.                             Power to delegate to any other person or persons all or any of the
administrative, management functions and powers (including investment powers)
vested in it either under this Deed or due to its office as Trustee and to pay
any such person(s) for their services PROVIDED THAT the Trustee shall not
pursuant to this paragraph (7) be entitled to delegate the exercise of discretionary
trusts and powers in relation to the Trust Fund which require or empower the
determination of beneficial interests in the Trust.

 

8.                             Power to effect any transaction not authorised by this Deed
concerning or affecting any part of the Trust Fund if the Trustee thinks the
transaction is for the benefit of the Trust Fund or the Beneficiaries as if the
Trustee were the sole absolute beneficial owner of the Trust Fund.  For the purposes of this paragraph (8) transaction
includes any option, sale, exchange, assurance, grant, lease, surrender,
reconveyance, release, reservation, subordination or other disposition and any
assignment, pledge, charge or mortgage or other security provision and any
purchase or other acquisition and any covenant, guarantee, contract, licence or
right of pre-emption and any compromise, waiver, release, forbearance,
partition or other dealing or arrangement and effect has the meaning
appropriate to the particular transaction.

 

9.                             Power to act on the advice or opinion of any lawyer, actuary,
accountant, investment adviser, broker or other professional person and,
instead of acting personally to appoint or employ agents and advisers to
transact any business and to do all acts to be done by the Trustee under this
Deed including the day-to-day management of any investments and the payment of
any benefits.  The Trustee shall
determine the remuneration of any agents or advisers but shall not be liable
for the default of any agent or adviser appointed or employed in good faith or
for any loss arising from the appointor acting in accordance with the advice of
any adviser PROVIDED THAT the Trustee shall not pursuant to this paragraph (9)
be entitled to delegate the exercise of discretionary trusts and powers in
relation to the Trust Fund which require or empower the determination of
beneficial interests in the Trust.

 

10.                       Power from time to time to cause any Property forming part of the
Trust Fund to be registered in the name or names of any other persons or
corporations on behalf of the Trustee and to pay any connected expenses out of
the Trust Fund without liability for any loss to the Trust Fund caused by the
exercise of this power.

 

11.                       Power at any time to have any assets valued for any purpose in the
manner the Trustee thinks fit.

 

IN
WITNESS of which this Deed has been executed and delivered on the date first
above written.

 

16

 

EXECUTED
AND DELIVERED

as a
Deed by CYCLACEL GROUP PLC

acting
by

 

 

Director  /s/ Robert Jackson

 

 

Director/Secretary  /s/ Paul McBarron

 

 

THE
COMMON SEAL of OGIER EMPLOYEE BENEFIT TRUSTEE
LIMITED             )

 

was
affixed to this Deed in the presence
of:              )

 

 

Authorised Signatory  /s/ Peter Le Breton

 

 

Authorised Signatory  /s/ Philip Norman

 

17Exhibit
10.12

 

RULES OF

 

 

CYCLACEL
GROUP PLC

 

SAVINGS
RELATED SHARE OPTION PLAN

 

 

(Authorised by shareholders on 1 July, 2004

Adopted by the Board on 30 June, 2004

Approved by the Inland Revenue on [   ])

 

 

 

ALLEN
& OVERY LLP

 

London

EP:269485.2

 

 

 

SAVINGS
RELATED SHARE OPTION PLAN

 

CONTENTS

 

	
  Rule

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions and
  interpretation

  	
   

  	
   

  
	
  2.

  	
  Invitation and
  application for Options

  	
   

  	
   

  
	
  3.

  	
  Scaling
  down

  	
   

  	
   

  
	
  4.

  	
  Grant
  of Options

  	
   

  	
   

  
	
  5.

  	
  Limit
  on Shares

  	
   

  	
   

  
	
  6.

  	
  Time of exercise of Options

  	
   

  	
   

  
	
  7.

  	
  Lapse
  of Options

  	
   

  	
   

  
	
  8.

  	
  Exercise
  of Options and issue or transfer of Shares

  	
   

  	
   

  
	
  9.

  	
  Adjustment of Options

  	
   

  	
   

  
	
  10.

  	
  Exchange
  of Options

  	
   

  	
   

  
	
  11.

  	
  Administration

  	
   

  	
   

  
	
  12.

  	
  Amendment

  	
   

  	
   

  
	
  13.

  	
  General

  	
   

  	
   

  
	
  14.

  	
  Governing
  law

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Appendix

  	
   

  

 

 

 

1.             Definitions
and interpretation

 

1.1          Definitions

 

The words and
expressions used in this Plan which have capital letters have the meanings set
out in the Appendix.

 

1.2          Interpretation

 

The headings in
the Rules are for convenience and should be ignored when construing them.
Unless the context otherwise requires, words in the singular include the plural
and vice versa and words importing either gender include both genders.

 

Reference in the
Rules to any statutory provisions are to those provisions as amended or
re-enacted from time to time, and include any regulations or other subordinate
legislation made under them. 

 

2.             Invitation and application for Options

 

2.1          Time when invitations may be made

 

During the Plan
Period, the Board may during an Invitation Period invite Eligible Employees to
apply for Options.  If the Board chooses
to exercise its discretion in this way, invitations will be extended to all
Eligible Employees.

 

2.2          Form of invitation

 

The Board will
specify the form of the invitations to apply for Options.  Invitations may be made by letter, poster,
circular, advertisement, electronically or any other means or combination of
means determined by the Board.  If the
Option Price is advertised by poster, the Date of Invitation will be the day
following the day or, as the case may be, the last of the three dealing days by
reference to which the Option Price is determined.

 

2.3          Option Price

 

The Board will
decide the Option Price for an invitation. The Option Price will not be less
than the higher of:

 

(a)           80 per cent. of the Market
Value of a Share on the Dealing Day immediately preceding the Date of
Invitation or, if the Board decides, 80 per cent. of the average of the Market
Values of a Share on the three Dealing Days immediately preceding the Date of
Invitation or 80 per cent. of the Market Value at such other time or times
agreed in advance with the Inland Revenue; and

 

(b)           if the Shares are to be
subscribed, their nominal value, 

 

but subject to any adjustment under Rule 9.

 

2.4          Applications

 

An Eligible
Employee may apply for an Option in the form specified by the Board.  The application will contain any
undertakings and/or declarations from Eligible Employees that the Board
requires for the Plan.  The application
form must be accompanied by a completed proposal form to enter a Savings
Contract with the Savings Body. 
Eligible Employees must

 

 

apply for Options
within 21 days following the Date of Invitation (or any shorter period, but not
less than 14 days, determined by the Board). 

 

2.5          Employee’s specification

 

An Eligible
Employee must specify:

 

(a)           the Monthly
Contribution which, subject to Rules 2.8 and 3, the Eligible Employee wishes to
make; and 

 

(b)           subject to
Rule 2.7, whether the Savings Contract Repayment is to include the Three
Year Bonus, the Five Year Bonus or the Seven Year Bonus.

 

2.6          Shares available

 

The Board may
specify a maximum number of Shares available under an invitation.

 

2.7          Bonus available

 

The Board may
allow Eligible Employees when applying for an Option to elect for the Three
Year Bonus, the Five Year Bonus or the Seven Year Bonus.  If the Board do not specify in the
invitation documents, Eligible Employees may only elect for the Three Year
Bonus. 

 

2.8          Limit on participation

 

A Participant
cannot contribute monthly to Savings Contracts more than the Maximum
Contribution.

 

3.             Scaling down

 

3.1          Method

 

If there are
insufficient Shares available to satisfy valid applications for Options, the
Board may use any of the following methods, or a combination of methods, to
scale down applications to the extent necessary to eliminate the excess:

 

(a)           treat any applications
for a Seven Year Bonus as an application for a Five Year Bonus; or

 

(b)           reduce pro-rata the
proposed Monthly Contribution of each Eligible Employee which is in excess of
an amount chosen by the Board; 

 

(c)           treat the bonus of each
Eligible Employee as wholly or partly excluded from the Savings Contract
Repayment; or

 

(d)           reduce pro-rata the
proposed Monthly Contribution of each Eligible Employee, provided that this
amount is not less than the Minimum Contribution; or

 

(e)           or treat any
applications for a Five Year Bonus as an application for a Three Year Bonus; or

 

(f)            select applications by
lot, each based on a Monthly Contribution equal to the Minimum Contribution and
no bonus in the Savings Contract Repayment.

 

2

 

3.2          Applications modified

 

If scaling down is
necessary each application will be deemed to have been modified or withdrawn in
accordance with the method chosen under Rule 3.1 and the Board will complete or
amend, as appropriate, each Savings Contract proposal form to reflect any
reduction in Monthly Contributions.  The
Board will then grant Options under Rule 4, but the period of 30 days in
Rule 4.2 will be increased to 42 days.

 

4.             Grant of Options

 

4.1          Option grant

 

Subject to Rule 3,
Options will be granted by the Board to each Eligible Employee who has applied
for an Option over the largest whole number of Shares that can be acquired at
the Option Price with the Savings Contract Repayment related to their
respective applications.  An Option will
be granted so that it constitutes a binding contract between the Company and
the Participant.  There will be no
payment for the grant of an Option.

 

4.2          Time of grant

 

Options will be
granted within 30 days after the date on which the Option Price is determined
or, if the Option Price is determined over three consecutive dealing days,
within 30 days after the earliest of those dealing days.  

 

4.3          Notification of grant

 

A Participant will
be notified of the grant of an Option and may be issued with an option
certificate specifying the date on which the Option was granted, the number of
Shares under the Option, the Option Price, the Bonus and Bonus Date of the
Option.  Alternatively, a Participant
may be advised where that information can be accessed, or be given the
opportunity to obtain such details electronically.  

 

4.4          Options personal to Participants

 

An Option may not,
nor may any rights in respect of it, be transferred, assigned, charged or
otherwise disposed of to any person, except that on the death of a Participant
an Option may be transmitted to the Participant’s personal representatives. 

 

5.             Limit on Shares

 

5.1          The 10 per cent. limit over 10 years 

 

The number of
Shares which may be allocated under the Plan on any day cannot, when added to
the aggregate of the number of Shares allocated in the previous 10 years under
the Plan and any other Employees’ Share Plan adopted by the Company, exceed
that number of Shares equal to 10 per cent. of the ordinary share capital of
the Company in issue immediately prior to that day. 

 

5.2          Exclusion from limit

 

In calculating the
limit in Rule 5.1, the following Shares shall be ignored and disregarded:

 

3

 

(a)           any Shares where the
right to acquire them was released or lapsed without being exercised;

 

(b)           any Shares which are or
have been allocated under the Cyclacel Group plc Senior Executive Incentive
Plan;

 

(c)           Partnership shares
awarded under a SIP.

 

5.3          Meaning of allocation

 

References to the
“allocation” of Shares means, in the case of any share option plan, the placing
of unissued shares or treasury Shares under option and, in relation to other
types of Employees’ Share Plan, means the issue and allotment of Shares, or
transfer of Shares out of treasury.

 

5.4          Grants in excess

 

If an Option is
granted on terms which do not comply with this Rule 5, the number of Shares
over which that Option has been granted will, together with the number of
Shares over which all other Options have been granted on the same Date of
Grant, be reduced pro rata to the largest lower number that complies with this
Rule. An adjusted Option will take effect from the Date of Grant as if it had
been granted on the adjusted terms.

 

5.5          Adjustment of Shares to be taken into account

 

Where Shares
issued under the Plan or any other Employees’ Share Plan of the Company are to
be taken into account for the purposes of the limit in this Rule and a
Variation in the equity share capital of the Company has taken place between
the date of issue of those Shares and the date on which the limit is to be
calculated, then the number of Shares taken into account for the purposes of
the limit will be adjusted in the manner the Board considers appropriate to
take account of the Variation.

 

6.             Time of
exercise of Options

 

6.1          General rules for exercise

 

An Option may:

 

(a)           except as provided in
Rule 6.2, only be exercised by a Participant while he is a director or employee
of a Participating Company or an Associated Company; and

 

(b)           not be exercised by a
Participant (or, if appropriate, the Participant’s personal representatives) at
any time when a Participant cannot (or would not have been able to) participate
in the Plan due to the provisions of paragraph 11 of Schedule 3 (material
interest in close company).

 

6.2          Timing of exercise 

 

Subject to
Rule 7, an Option can be exercised at any time for a period of six months
following the earliest of:

 

4

 

(a)           the applicable Bonus
Date;

 

(b)           the Participant ceasing
to be employed by reason of injury, disability, Redundancy or Retirement where
the Participant’s employment is in a company which the Company has ceased to
Control or relates to a business which was transferred to a person who was not
an Associated Company of the Company.

 

6.3          Death

 

Any Option held by
a Participant who dies can be exercised by his personal representatives within
12 months after the earlier of the date of the Participant’s death or the Bonus
Date of the Option (if death occurs within 6 months of the Bonus Date).

 

6.4          Cessation of scheme related employment

 

(a)           For the purposes of
Rule
6.2(b), a participant will not be treated as ceasing to be an employee or
director of a Participating Company until he is no longer employed by the
Company or an associated company (as defined in paragraph 35(4) of Schedule 3).

 

(b)           For the purposes of
Rule 6.2(b), a woman who leaves employment because of pregnancy will cease
employment on the date on which she indicates either that she does not intend
to return to work or that she will not be returning to work.  If she does not so indicate she will cease
employment on the day after the date on which maternity pay under the
Employment Rights Act 1996 ceases to be payable, or if later, any other date
specified in the terms of her employment without her returning to work. 

 

6.5          Takeover

 

Subject to Rule 7
and provided the Option is not to be exchanged under Rule 6.8, an Option can be
exercised for a period of 6 months following the date on which an offeror
(together with others, if any, acting in concert with the offeror) obtains
Control of the Company as a result of making a general offer to acquire all the
issued ordinary shares of the Company or all of the shares of the Company which
are of the same class as the Shares and which, in either case, are not at the
time owned by the offeror or any company Controlled by the offeror and/or
persons acting in concert with the offeror) and any condition subject to which
the offer was made has been satisfied.

 

6.6          Section 429 notice

 

Subject to Rule 7
and provided the Option is not to be exchanged under Rule 6.8, an Option can be
exercised for the period during which a person is bound or entitled under
sections 428 to 430F of the Companies Act 1985 to acquire any Shares (or who
would be so entitled but for the fact that there were no dissenting
shareholders).

 

6.7          Company reconstruction under s 425 (or
comparable overseas legislation)

 

Subject to Rule 7
and provided the Option is not to be exchanged under Rule 6.8, an Option can be
exercised for a period of 6 months following the date when the court sanctions
a compromise or arrangement under section 425 of the Companies Act 1985 (or
overseas legislation regarded as comparable by the Inland Revenue) proposed for
the purposes of or in connection with a scheme for the reconstruction or
amalgamation of the Company.

 

5

 

6.8          Reorganisation or merger

 

If a company (the “Successor
Company”) has obtained Control of the Company, and the shareholders of the
Successor Company immediately after it has obtained Control are substantially
the same as the shareholders of the Company immediately before that event, and
the Successor Company consents to the exchange of options under this Rule,
Options will not be exercisable but will be exchanged, during the Appropriate
Period, pursuant to Rule 10 save that references to the Acquiring Company
in that Rule shall be deemed to be references to the Successor Company.

 

7.             Lapse of Options

 

Except in the case of a
Participant’s death, when an Option will lapse on the expiry of twelve months
from the earlier of the date of the Participant’s death or the Bonus Date, as
appropriate, an Option will lapse on the earliest of:

 

(a)           the expiry of six
months from the Bonus Date;

 

(b)           the expiry of six
months from the date on which the Participant ceases to be a director or
employee of a Participating Company or an Associated Company in any of the circumstances
referred to in Rule 6.2(b);

 

(c)           the date on which the
Participant ceases to be a director or employee of a Participating Company or
an Associated Company in any circumstances other than those referred to in
Rules 6.2(b);

 

(d)           the Participant’s right
to continue making Savings Contributions lapsing under the provisions of the
Savings Contract other than on death or for the purpose of exercising an
Option; and

 

(e)           the expiry of the
period of six months following the occurrence of any of the circumstances
permitting the exercise of Options in Rules 6.2(b), 6.5 and 6.7; and

 

(f)            the expiry of the
period during which a person is entitled or bound to acquire Shares under
sections 428 to 430F of the Companies Act 1985.

 

8.             Exercise of Options and issue or
transfer of Shares

 

8.1          Manner of Exercise

 

An Option may be
exercised in whole or in part by the Participant giving notice of exercise to
or at the direction of the Company in a form approved by the Board.  The notice will specify the number of Shares
(and the Exercise Price) over which the Option is exercised and be accompanied
by the form of withdrawal from the Savings Contract required by the Savings
Body or by an appropriate remittance and evidence of withdrawal from the
Savings Contract. If an Option is exercised in part the unexercised part will
lapse.

 

8.2          Monies available for exercise

 

The Exercise Price
payable on exercise of an Option cannot exceed the amount of the repayment made
(including any interest) under the Participant’s related Savings Contract.  For this purpose, the repayment under the
Savings Contract will exclude the repayment of

 

6

 

any Monthly
Contribution the date of payment of which falls more than one month after the
date on which the repayment is made.

 

8.3          Delivery of shares

 

Subject to Rule
8.4, the Company will arrange for the delivery of any Shares to a Participant
(or the Participant’s nominee) within 30 days following the effective exercise
of the Option. 

 

8.4          Consents

 

The delivery of
any Shares under the Plan will be subject to obtaining any necessary approval
or consent. 

 

8.5          Ranking of Shares

 

Shares acquired by
a Participant under the Plan will rank equally in all respects with the Shares
then in issue, except that they will not be entitled to any rights attaching to
Shares by reference to a record date falling before the date on which the
Participant is entered on the Company’s register of shareholders in respect of
those Shares.  

 

8.6          Listing

 

While the Shares
are Listed the Company will apply for Listing of any Shares issued under the
Plan as soon as practicable after their allotment. 

 

9.             Adjustment of
Options

 

9.1          Variation in equity share capital

 

If there is a
Variation, the number and/or the nominal value of Shares over which an Option
is granted and the Option Price will, subject to Rule 9.2 and the prior
approval of the Inland Revenue, be adjusted in the manner the Board determines
so that (as nearly as may be without involving fractions of a Share or an Option
Price calculated to more than two decimal places) the Exercise Price remains
unchanged. 

 

9.2          Nominal value of Shares

 

Apart from under
this Rule 9.2, no adjustment under Rule 9.1 can reduce the Option Price to less
than the nominal value of a Share. Where Options relate to both issued and
unissued Shares, an adjustment under Rule 9.1 above may only be made if the
reduction of the Option Price in respect of both the issued and the unissued
Shares can be made to the same extent. Any adjustment made to the Option Price
of Options over unissued Shares to less than the nominal value of a Share will
only be made if and to the extent that the Board is authorised to:

 

(a)           capitalise from the
reserves of the Company a sum equal to the amount by which the nominal value of
the Shares subject to an Option exceeds the adjusted Exercise Price; and

 

(b)           apply that sum in
paying up the Shares, 

 

so that on
exercise of the Option the Board will capitalise that sum and apply it in
paying up the Shares.

 

7

 

9.3          Notifying Participants

 

The Company will
take the steps it considers necessary to notify Participants of any adjustments
made under Rule 9 and may call in, cancel, endorse, issue or re-issue any
certificate as a result of that adjustment.

 

10.          Exchange of Options

 

10.1        The Acquiring Company

 

If any company
(the “Acquiring Company”)

 

(a)           obtains Control of the
Company as a result of making a general offer to acquire:

 

(i)            the whole of the
issued ordinary share capital of the Company; or

 

(ii)           all the shares in the
Company which are of the same class as the Shares, 

 

in either case ignoring any Shares which are already owned by it or a
member of the same group of companies; or

 

(b)           obtains Control of the
Company as a result of a compromise or arrangement sanctioned by the court
under section 425 of the Companies Act 1985; or

 

(c)           becomes entitled to
acquire Shares under sections 428 to 430F of the Companies Act 1985,

 

any Participant
may, at any time within the Appropriate Period, by agreement with that
Acquiring Company, release any Option which has not lapsed (the “Old Option”)
in consideration of the grant to the Participant of a new option (the “New
Option”) which (for the purposes of paragraph 39 of Schedule 3) is equivalent
to the Old Option but relates to shares in a different company (whether the
Acquiring Company itself or another company falling within paragraph 18(b)
or (c) of Schedule 3).  

 

10.2        The New Option

 

The New Option
will only be regarded as equivalent to the Old Option if the conditions set out
in paragraph 39(4) of Schedule 3 are satisfied. Where that is the case, the New
Option will be treated as an Option granted under the Plan at the same time and
on the same terms as the Old Option except for the purpose of the definition of
“Participating Company” in the Appendix, and:

 

(a)           the Rules will be
construed in relation to the New Option as if references to Shares were
references to the shares over which the New Option is granted and references to
the Company were references to the different company mentioned in
Rule 10.1; and

 

(b)           Rule 12.2 will be
omitted.

 

For the avoidance of
doubt, the Plan remains that of the company which first established this Plan
prior to the release.

 

8

 

11.          Administration

 

11.1        Administration and interpretation

 

The Plan will be
administered by the Board.  The Board
has full authority, consistent with the Rules, to administer the Plan,
including authority to interpret and construe any provision of the Plan and to
adopt any regulations for administering the Plan and any documents it thinks
necessary or appropriate. The Board’s decision on any matter concerning the
Plan will be final and binding.

 

11.2        Costs

 

The Company will
bear the cost of introducing and operating the Plan (including but not limited
to stamp duty, stamp duty reserve tax and any other costs relating to the issue
or transfer of Shares upon the exercise of Options). However, the Company may
require any Participating Company to reimburse the Company for any Plan costs
borne by the Company, directly or indirectly, in respect of that Participating
Company’s officers or employees.

 

11.3        Shares to cover Options

 

The Company will
ensure that sufficient Shares are available to satisfy all outstanding Options.

 

11.4        Notices

 

Any notice or
other communication in connection with the Plan will be in writing and may be
given:

 

(a)           by personal delivery;
or

 

(b)           by sending it by post:

 

(i)            in the case of a
company, to its registered office or other address that it notifies in writing;
and

 

(ii)           in the case of an
individual, to the individual’s last known address or, where the individual is
a director or employee of a Participating Company or an Associated Company,
either to the individual’s last known address or to the address of the place of
business at which the individual performs the whole or substantially the whole
of the duties of the individual’s office or employment; or 

 

(c)           by sending it by
facsimile, email or any form of electronic transfer acceptable to the Board:

 

(i)            in the case of a
company, to the facsimile number, email address or other number or address that
the company notifies; and

 

(ii)           in the case of an
individual, to the individual’s last known facsimile number or email address,
or where the individual is a director or employee of a Participating Company or
an Associated Company, to the individual’s workplace facsimile number or email
address.

 

9

 

11.5        Time of service of notice

 

Any notice under
Rule 11.4 will be given:

 

(a)           if delivered, at the
time of delivery;

 

(b)           if posted, at 10.00am
on the second business day after it was put into the post; or 

 

(c)           if sent by facsimile,
email or any other form of electronic transfer, at the time of despatch.

 

In proving service
of notice it will be sufficient to prove that delivery was made or that the
envelope containing it was properly addressed, prepaid and posted or that the
facsimile message, email or other form of electronic transfer was properly
addressed and despatched, as appropriate.

 

11.6        Documents sent to shareholders

 

Participants may
receive copies of any notice or document sent by the Company to the holders of
Shares.

 

12.          Amendment

 

12.1        Board’s power to amend

 

Subject to the
provisions of this Rule 12, the Board can at any time amend any provisions of
the Plan in any respect except that any amendment made to a key feature (as
defined in paragraph 42(2B) of Schedule 3) while the Plan is approved
under Schedule 3 will not have effect until the Inland Revenue has approved it.

 

12.2        Shareholder approval

 

Subject to Rule
12.4 below, no amendment can be made to the advantage of Participants or
Eligible Employees to:

 

(a)           the persons to whom
Options may be granted;

 

(b)           the limit on the number
of Shares which may be issued under the Plan;

 

(c)           the maximum entitlement
for individual Participants;

 

(d)           the rights attaching to
Options and Shares;

 

(e)           the determination of
the Option Price;

 

(f)            the rights of
Participants in the event of a Variation; or

 

(g)           the terms of this Rule
12.2,

 

without the prior
approval by ordinary resolution of the members of the Company in general
meeting.

 

10

 

12.3        Participants’ approval

 

No amendment will
be made under Rule 12.1 which would abrogate or adversely affect the subsisting
rights of a Participant unless it is made:

 

(a)           with the written
consent of the number of Participants that hold Options under the Plan to
acquire 75 per cent. of the Shares which would be delivered if all Options
granted and subsisting under the Plan were exercised; or 

 

(b)           by a resolution of a
meeting of Participants passed by not less than 75 per cent. of the
Participants who attend and vote either in person or by proxy, 

 

and for the
purposes of this Rule 12.3 the provisions of the articles of association of the
Company relating to shareholder meetings will apply with the necessary changes.

 

12.4        Permitted amendments

 

Rule 12.2 will not
apply to any amendment which is:

 

(a)           necessary or desirable
in order to obtain or maintain Inland Revenue approval of the Scheme under
Schedule 3; 

 

(b)           minor and to benefit
the administration of the Plan;

 

(c)           to take account of any
changes in legislation; or 

 

(d)           to obtain or maintain
favourable tax, exchange control or regulatory treatment for the Company, any
Participating Company or Associated Company, or any present or future
Participant.

 

12.5        Overseas Eligible Employees

 

The Board may
adopt additional sections of the Plan applicable in any jurisdiction, under
which Options may be subject to additional and/or modified terms and
conditions, having regard to any securities, exchange control or taxation laws,
regulations or practice which may apply to the Participant, the Company or any
Participating Company.  Any additional
section must conform to the basic principles of the Plan and must not enlarge
to the benefit of Participants the limits in Rule 2.8 (Limit on participation)
or Rule 5 (Limit on Shares). Any additional section and all Options granted
under that section will be governed by and construed in accordance with the
laws of England.

 

12.6        Notice of amendments

 

Participants will
be given written notice of any amendments to the Plan made under Rule 12 as
soon as reasonably practicable after they have been made.

 

12.7        Prohibited amendment

 

No amendment will
be made to the Plan if, as a result of the amendment, it would cease to be an
Employees’ Share Plan.

 

11

 

13.          General

 

13.1        Termination of the Plan

 

The Plan will
terminate at the end of the Plan Period or at any earlier time determined by
the Board.  Termination of the Plan will
not affect Options granted before termination. 

 

13.2        Funding the Plan

 

The Company and
any Participating Company may provide money to the trustees of any trust or any
other person to enable them or him to acquire Shares to be held for the
purposes of the Plan, or enter into any guarantee or indemnity for those
purposes, to the extent permitted by any applicable law. 

 

13.3        Rights of Participants and Eligible Employees

 

The rights and
obligations of any individual under the terms of his office or employment with
a Participating Company or Associated Company will not be affected by his
participation in the Plan nor any right which he may have to participate under
it.  A Participant holding an Option
will not have any rights of a shareholder of the Company with respect to that
Option or the Shares subject to it.  

 

13.4        No right to compensation or damages

 

A Participant
waives all and any rights to compensation or damages for the termination of his
office or employment with a Participating Company or Associated Company for any
reason whatsoever (including unlawful termination of employment) insofar as
those rights arise or may arise from his ceasing to have rights under or to be
entitled to exercise any Option under the Plan as a result of that termination
or from the loss or diminution in value of such rights or entitlements.  Nothing in the Plan or in any document
executed under it will give any person any right to continue in Employment or
will affect the right of any Participating Company or any Associated Company to
terminate the employment of any Participant without liability at any time, with
or without cause, or will impose on any Participating Company, any Associated
Company or the Board or their respective agents and employees any liability in
connection with the loss of a Participant’s benefits or rights under the Plan
for any reason as a result of the termination of his employment.

 

13.5        The benefit of Rules 13.3 and 13.4

 

The benefit of
Rules 13.3 and 13.4 is given for the Company, for itself and as trustee and
agent of all the Participating Companies and Associated Companies.  The Company will hold the benefit of these
Rules on trust and as agent for each of them and may assign the benefit of this
Rule 13.5 to any of them.

 

13.6        Articles of association

 

Any Shares
acquired on the exercise of Options will be subject to the articles of
association of the Company from time to time.

 

13.7        Severability

 

The invalidity or
non-enforceability of one or more provisions of the Plan will not affect the
validity or enforceability of the other provisions of the Plan.

 

12

 

13.8        Third Parties

 

This Plan confers
no benefit, right or expectation on a person who is not an Eligible
Employee.  No third party has any rights
under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of
this Plan.  Any other right or remedy
which a third party may have is unaffected by this Rule.

 

13.9        Data Protection

 

All Eligible
Employees agree as a condition of their participation in the Plan that any
personal data in relation to them may be held by a Participating Company and/or
a trustee and passed on to a third party where necessary for administration of
the Plan, including to countries or territories outside the European Economic
Area.

 

14.          Governing law

 

These Rules will
be governed by and construed in accordance with the law of England. All
Participants, the Company, and any other Participating Company or Associated
Company, will submit to the jurisdiction of the English courts in relation to
any dispute arising under the Plan.

 

13

 

Appendix

 

	
  Act

  	
   

  	
  the Income Tax (Earnings & Pensions) Act 2003;

  
	
   

  	
   

  	
   

  
	
  Appendix

  	
   

  	
  this appendix which forms part of the Rules;

  
	
   

  	
   

  	
   

  
	
  Appropriate
  Period

  	
   

  	
  the relevant period referred to in paragraph 38(3) of Schedule 3;

  
	
   

  	
   

  	
   

  
	
  Associated
  Company

  	
   

  	
  the meaning given by paragraph 47(1) of Schedule 3;

  
	
   

  	
   

  	
   

  
	
  Board

  	
   

  	
  the board of directors for the time being of the Company or a duly
  constituted committee of the board;

  
	
   

  	
   

  	
   

  
	
  Bonus
  Date

  	
   

  	
  the date on which the bonus becomes payable under the terms of the
  relevant Savings Contract;

  
	
   

  	
   

  	
   

  
	
  Company

  	
   

  	
  Cyclacel Group plc, registered in England and Wales under no.
  5090795;

  
	
   

  	
   

  	
   

  
	
  Continuous
  Service

  	
   

  	
  the same meaning as for “continuous employment” given in the
  Employment Rights Act 1996;

  
	
   

  	
   

  	
   

  
	
  Control

  	
   

  	
  in relation to a body corporate, the power of a person to secure:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           by means of the
  holding of shares or the possession of voting power in or in relation to that
  or any other body corporate; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           by virtue of any
  power conferred by the articles of association or other document regulating
  that or any other body corporate,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  that the affairs of the
  first-mentioned body corporate are conducted in accordance with the wishes of
  that person;

  
	
   

  	
   

  	
   

  
	
  Date
  of Grant

  	
   

  	
  with respect to an Option, the date on which it is granted under
  Rule 4;

  
	
   

  	
   

  	
   

  
	
  Date
  of Invitation

  	
   

  	
  the date on which an invitation is made to Eligible Employees under
  Rule 2;

  
	
   

  	
   

  	
   

  
	
  Dealing
  Day

  	
   

  	
  any day on which the London Stock Exchange is open for the
  transaction of business;

  

 

14

 

	
  Eligible
  Employee

  	
   

  	
  any person who at the Date of Grant is either:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           an employee or
  Full-Time Director of any Participating Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (ii)           who has the qualifying period (if any) of
  Continuous Service (not exceeding 5 years prior to the Date of Grant) that
  the Board determines; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           any employee or
  executive director of a Participating Company not within (a) above who the
  Board determines to be an Eligible Employee in respect of any particular
  invitation,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  but excluding an Eligible Employee who is not eligible to participate
  in the Plan due to the provisions of paragraph 11 of Schedule 3 (material
  interest in a close company);

  
	
   

  	
   

  	
   

  
	
  Employees’
  Share Plan

  	
   

  	
  a scheme for encouraging or facilitating the holding of shares or
  debentures in a company by or for the benefit of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           the employees or
  former employees of the Company, the company’s subsidiary or holding company
  or a subsidiary of the Company’s holding company; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           the wives, husbands,
  widows, widowers or children or step-children under the age of 18 of such
  employees or former employees;

  
	
   

  	
   

  	
   

  
	
  Exercise
  Price

  	
   

  	
  the total amount payable on exercise of an Option being an amount
  equal to the relevant Option Price multiplied by the number of Shares in
  respect of which the Option is exercised;

  
	
   

  	
   

  	
   

  
	
  Five
  Year Bonus

  	
   

  	
  the amount of bonus payable under a Savings Contract following the
  fifth anniversary of the start date of that Savings Contract and the payment
  of 60 monthly contributions under that Savings Contract;

  
	
   

  	
   

  	
   

  
	
  Full-Time
  Director

  	
   

  	
  a director whose terms of appointment require him to devote not less
  than 25 hours per week (excluding meal breaks) to his duties under the
  appointment;

  
	
   

  	
   

  	
   

  
	
  Group

  	
   

  	
  the Company and all companies which are under the Control of the
  Company;

  

 

15

 

	
  Invitation
  Period

  	
   

  	
  the period of 42 days commencing on any of the following:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           the day after the
  date on which the Company releases its results for any financial period;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           the date of approval
  of the Plan under Schedule 3 of the Act;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)           any day on which the
  Board resolves that exceptional circumstances exist which justify the grant
  of options;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)           any day on which any
  change to the legislation affecting savings-related share option schemes
  approved by the Inland Revenue is announced or made;

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (e)           the day immediately
  following any general meeting of the Company; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (f)            the day on which
  Shares are first Listed;

  
	
   

  	
   

  	
   

  
	
  Listed

  	
   

  	
  admitted to trading on a Recognised Stock Exchange and Listing will
  be construed accordingly;

  
	
   

  	
   

  	
   

  
	
  London
  Stock Exchange

  	
   

  	
  the London Stock Exchange plc or any successor body carrying on the
  business of the London Stock Exchange plc;

  
	
   

  	
   

  	
   

  
	
  Market
  Value

  	
   

  	
  in relation to a Share on any day:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           if the Shares are not
  Listed, an amount equal to its market value determined in accordance with
  Part VIII of the Taxation of Chargeable Gains Act 1992 and agreed with the
  Shares Valuation Division of the Inland Revenue in advance of the Date of
  Invitation; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           if the Shares are
  Listed, its middle market quotation as derived from the Daily Official List
  of the London Stock Exchange;

  
	
   

  	
   

  	
   

  
	
  Maximum
  Contribution

  	
   

  	
  the lesser of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           a Monthly
  Contribution of £250 or any other maximum amount permitted under paragraph 25
  of Schedule 3 as the maximum amount of a Monthly Contribution; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           the maximum Monthly
  Contribution determined by the Board;

  

 

16

 

	
  Minimum
  Contribution

  	
   

  	
  the lesser of:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)           a Monthly
  Contribution of £10 or any other amount stipulated under Schedule 3 as the
  minimum amount of a Monthly Contribution; and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           the minimum Monthly
  Contribution determined by the Board, not being less than £5;

  
	
   

  	
   

  	
   

  
	
  Monthly
  Contribution

  	
   

  	
  the monthly amount agreed to be paid by a Participant under a Savings
  Contract;

  
	
   

  	
   

  	
   

  
	
  Option

  	
   

  	
  a right to acquire Shares under the Plan;

  
	
   

  	
   

  	
   

  
	
  Option
  Price

  	
   

  	
  the price determined by the Board under Rule 2.3 at which a Share
  subject to an Option may be acquired on the exercise of that Option;

  
	
   

  	
   

  	
   

  
	
  Participant

  	
   

  	
  any person who has been granted an Option including, if relevant, his
  personal representatives;

  
	
   

  	
   

  	
   

  
	
  Participating
  Company

  	
   

  	
  the Company and any other company in the Group to which the Board has
  resolved that the Plan will extend;

  
	
   

  	
   

  	
   

  
	
  Plan

  	
   

  	
  the Cyclacel Group plc Savings Related Share Option Plan, as amended
  from time to time in accordance with the Rules;

  
	
   

  	
   

  	
   

  
	
  Plan
  Period

  	
   

  	
  the period starting on the date the Plan is approved by the Company
  in general meeting and ending on the 10th anniversary of that date;

  
	
   

  	
   

  	
   

  
	
  Redundancy

  	
   

  	
  termination of the Participant’s employment by reason of redundancy
  within the meaning of the Employment Rights Act 1996;

  
	
   

  	
   

  	
   

  
	
  Recognised
  Stock Exchange

  	
   

  	
  the London Stock Exchange and any other stock exchange outside the
  United Kingdom that is for the time being designated for the purpose of
  section 841 of the Taxes Act as a recognised stock exchange;

  
	
   

  	
   

  	
   

  
	
  Retirement

  	
   

  	
  retirement from the office or employment by virtue of which a
  Participant is eligible to participate in the Plan on reaching the Specified
  Age or any other age at which the Participant is bound to retire under the
  Participant’s contract of employment;

  
	
   

  	
   

  	
   

  
	
  Rules

  	
   

  	
  the rules of the Plan as amended from time to time;

  
	
   

  	
   

  	
   

  
	
  Savings
  Body

  	
   

  	
  the savings body designated by the Board for the purpose of the Plan;

  
	
   

  	
   

  	
   

  
	
  Savings
  Contract

  	
   

  	
  a contract under a certified contractual savings scheme within the
  meaning of section 326 of the Taxes Act which is approved by the Board of the
  Inland Revenue for the purposes of Schedule 3;

  

 

17

 

	
  Savings
  Contract Repayment

  	
   

  	
  (a)           the aggregate
  repayment which corresponds to any particular rate of saving under a Savings
  Contract, being the repayment of all Savings Contributions plus the Three
  Year Bonus, the Five Year Bonus or the Seven Year Bonus, as applicable,
  payable on the Bonus Date; or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)           to the extent that
  Rules 3 or 5 apply to adjust the number of Shares under Option, the amount
  applied to calculate the number of Shares comprised in the Option;

  
	
   

  	
   

  	
   

  
	
  Schedule
  3

  	
   

  	
  Schedule 3 to the Act;

  
	
   

  	
   

  	
   

  
	
  Seven
  Year Bonus

  	
   

  	
  the amount of bonus payable under a Savings Contract following the
  seventh anniversary of the starting date of that Savings Contract and payment
  of 60 monthly contributions under that Savings Contract;

  
	
   

  	
   

  	
   

  
	
  Share

  	
   

  	
  a fully paid ordinary share in the capital of the Company which
  satisfies the conditions of paragraphs 18 to 22 of Schedule 3;

  
	
   

  	
   

  	
   

  
	
  SIP

  	
   

  	
  an Inland Revenue approved Share Incentive Plan;

  
	
   

  	
   

  	
   

  
	
  Specified
  Age

  	
   

  	
  55 years;

  
	
   

  	
   

  	
   

  
	
  Taxes
  Act

  	
   

  	
  The Income and Corporation Taxes Act 1988;

  
	
   

  	
   

  	
   

  
	
  Three
  Year Bonus

  	
   

  	
  The amount of bonus payable under a Savings Contract following the
  third anniversary of the starting date of that Savings Contract and payment
  of 36 monthly contributions under that Savings Contract; and

  
	
   

  	
   

  	
   

  
	
  Variation

  	
   

  	
  in relation to the equity share capital of the Company, a
  capitalisation issue, an offer or invitation made by way of rights, a
  subdivision, consolidation, reduction or any other variation in respect of
  which the Inland Revenue will allow an adjustment of Options.

  

 

18

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