Document:

exv4w5

 

Exhibit 4.5

 

 

Exhibit 4.5

Barclays PLC 

 

Rules

of the

Barclays PLC

Approved Incentive Share Option Plan

 

Approved by the Board of Inland Revenue

on 16 May 2000

Ref no: X20704/GRP

 

Lovells 

 

 

CONTENTS

	 	 	 	 	 	 	 	 	 
	Clause	 	 	 	Page No
	 	1.	 	 	Definitions and Interpretation
	 	 	1	 
	 	2.	 	 	Grant of Options
	 	 	4	 
	 	3.	 	 	Limitations on Grant of Options
	 	 	5	 
	 	4.	 	 	Exercise of Options
	 	 	6	 
	 	5.	 	 	Limitations on Exercise of Options
	 	 	7	 
	 	6.	 	 	Time for Exercise of Options
	 	 	8	 
	 	7.	 	 	Takeovers and Liquidations
	 	 	8	 
	 	8.	 	 	Replacement of Options on Change of Control of the Company
	 	 	9	 
	 	9.	 	 	Variations in the Share Capital of the Company
	 	 	11	 
	 	10.	 	 	Administration of the Plan
	 	 	11	 
	 	11.	 	 	Amendment of the Plan
	 	 	11	 
	 	12.	 	 	Additional Provisions
	 	 	12	 

 

 

Barclays PLC

Approved Incentive Share Option Plan

Definitions and Interpretation

	1.1	 	In the Plan the following words and expressions have the meanings set opposite them:
	 
	 	 	“Acquiring Company” means a company which for the purposes of clause 8 comes within the
definition of “the acquiring company” in paragraph 26(1) of Schedule 4;
	 
	 	 	“Adoption Date” means 26 April 2000 being the date on which the Plan is adopted by the
Company;
	 
	 	 	“Announcement Date” means the date on which the Company announces its annual, half-yearly
or if relevant quarterly results to the London Stock Exchange in any year within the
Operative Period;
	 
	 	 	“Any Other Approved Plan” means any employees’ share scheme other than the Plan established
by the Company or by any Associated Company and approved in accordance with Schedule 4;
	 
	 	 	“Any Other Executive Plan” means any employees’ share scheme other than the Plan adopted by
the Company in general meeting which provides for the acquisition of or subscription for
shares of the Company by or on behalf of selected employees and/or directors, and which is
not linked to an SAYE contract;
	 
	 	 	“Any Other Plan” means any employees’ share scheme other than the Plan adopted by the
Company in general meeting which provides for the acquisition of or subscription for shares
in the Company by or on behalf of employees or directors;
	 
	 	 	“Associated Company” means any company which is an associated company of the Company as
defined in paragraph 35 of Schedule 4;
	 
	 	 	“Auditors” means the auditors for the time being of the Company or in the event of there
being joint auditors such one of them as the Board shall select;
	 
	 	 	“BGI” means Barclays Global Investors UK Holdings Limited;
	 
	 	 	“BGI Plan” means the Barclays Global Investors Equity Ownership Plan adopted by the Company
on 26 April 2000;
	 
	 	 	“BGI Shares” means “A” Ordinary Shares in the capital of BGI;
	 
	 	 	“Barclays Bank” means Barclays Bank PLC;
	 
	 	 	“Board” means the board of directors for the time being of the Company or a committee of
the board of directors of the Company appointed to administer the Plan PROVIDED THAT if any
person obtains Control of the Company the Board or the relevant committee as appropriate
shall consist of the members of the Board or such committee as the case may be immediately
before such Control is obtained;
	 
	 	 	“Company” means Barclays PLC;
	 
	 	 	“Control” means the control of a company within the meaning given to that expression by
section 840 of the Taxes Act save that for the purposes of clause 7 a person shall be
deemed to have control of a company if he and others acting in concert with him have
together obtained control of the company within such meaning;
	 
	 	 	“Controlling Company” means a company other than the Company and an Acquiring Company which
falls within paragraph 27(2)(b) of Schedule 4;

 

	 	 	“Date of Grant” means the date on which an Option is granted in accordance with clause 2;
	 
	 	 	“Dealing Day” means a day on which transactions take place on the London Stock Exchange;
	 
	 	 	“Eligible Employee” means any person whose terms of employment require him to devote
substantially the whole of his working time to any member or members of the Group, but
excluding:

	 	(a)	 	any director of a member or members of the Group who is contracted to work for less than 25
hours a week (excluding meal breaks) in that capacity;
	 
	 	(b)	 	any person who is prohibited from participating in the Plan by the provisions of paragraph 9
of Schedule 4; and
	 
	 	(c)	 	any person who has less than two years service to run before his Normal Retirement Age
unless the Company in general meeting shall have resolved to waive such requirement in any
particular case;

	 	 	“Exercise Price” means subject to clause 9, the price per Share payable on the exercise of an
Option as determined by the Board and as stated when granting an Option in accordance with
clause 2 being:

	 	(a)	 	in the case of an Option to subscribe Shares not less than the greater of:

	 	(i)	 	the nominal value of a Share; and
	 
	 	(ii)	 	if and for so long as the Shares are admitted to the Official List of the UK
Listing Authority, the average middle market quotations of a Share as derived from the
Daily Official List of the UK Listing Authority (rounded up to the nearest whole penny)
over any period of not more than five successive Dealing Days in the period of 30 days
before the Date of Grant PROVIDED THAT any such period of successive Dealing Days falls
within the Grant Period; and
	 
	 	(iii)	 	if the Shares are not so admitted the market value of a Share determined in
accordance with Part VIII of the Taxation of Chargeable Gains Act 1992 and if and for so
long as the Plan has Revenue Approval agreed in writing in advance with Shares Valuation
the specialist valuation division of the Inland Revenue;

	 	(b)	 	in any other case, the average purchase price paid by the Trustees to purchase Shares on any
regulated market for the grant of Options over any period not exceeding ten successive Dealing
Days PROVIDED THAT:

	 	(i)	 	not more than 30 days shall elapse after the first Dealing Day taken for these
purposes and the Date of Grant;
	 
	 	(ii)	 	any such period of ten successive Dealing Days falls within the relevant Grant
Period;
	 
	 	(iii)	 	for the purposes of calculating the average purchase price, if the Trustees do not
purchase Shares on any regulated market the average purchase price the Trustees would
have paid had they bought the Shares on such regulated market during the relevant period
as determined by the Trustees; and
	 
	 	(iv)	 	the Trustees notify the Board in writing of the average purchase price paid for the
Shares by the Trustees (or which the Trustees would have paid pursuant to paragraph
(b)(iii) above);

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	 	 	“Financial Year” means a financial year of the Company within the meaning given to that
expression by section 742 of the Companies Act 1985;
	 
	 	 	“Grant Period” means any period of three months from:

	 	(a)	 	the day on which the Plan receives Revenue Approval;
	 
	 	(b)	 	an Announcement Date PROVIDED THAT if the Company is restricted by statute, order,
regulation or otherwise (including a restriction resulting from the application of the Model
Code for transactions in securities by directors or any comparable code adopted by the Company)
from granting Options within such three month period, the Company may grant Options within the
period of three months after the lifting of such restrictions;
	 
	 	(c)	 	any date on which changes to the legislation affecting share option schemes is announced or
made; or
	 
	 	(d)	 	any time when the Board resolves that exceptional circumstances exist which justify the
grant of Options;

	 	 	“Group” means the Company and all of its Subsidiaries and, in relation to a New Option granted
pursuant to clause 8, the Acquiring Company and the Controlling Company and their subsidiaries
as defined in section 736 of the Companies Act 1985, and “member of the Group” shall be
construed accordingly;
	 
	 	 	“ITEPA” means the Income Tax (Earnings and Pensions) Act 2003;
	 
	 	 	“London Stock Exchange” means the London Stock Exchange plc;
	 
	 	 	“Normal Retirement Age” means the earliest age at which an employee can be required to retire by
any member of the Group or, if sooner, the age at which he has agreed to take early retirement;
	 
	 	 	“Retirement Age” means age 55 or such other minimum age as may be specified from time to time in
Schedule 4;
	 
	 	 	“Operative Period” means the period of ten years commencing on the Adoption Date;
	 
	 	 	“Option” means subject to clause 8, a right to buy Shares granted pursuant to the Plan;
	 
	 	 	“Option Period” means subject to clauses 5, 6.2, 6.3, 6.4 and 7, the period during which an
Option shall be exercisable in accordance with the provisions of the Plan as determined by the
Board at its Date of Grant PROVIDED THAT the Board may not specify a period beginning earlier
than three years from its Date of Grant nor ending later than ten years from its Date of Grant;
	 
	 	 	“Participant” means an Eligible Employee who has been granted an Option or, where applicable,
the personal representative(s) of any such person;
	 
	 	 	“Plan” means the employees’ share scheme herein contained as from time to time amended in
accordance with the provisions hereof which shall be known as the “Barclays PLC Approved
Incentive Share Option Plan”;
	 
	 	 	“Revenue Approval” means approval of the Plan by the Board of Inland Revenue under Schedule 4;
	 
	 	 	“Schedule 4” means Schedule 4 to ITEPA;
	 
	 	 	“Shares” means subject to clause 8.3(a), ordinary shares in the capital of the Company which
satisfy the requirements of paragraphs 16 to 20 inclusive of Schedule 4;

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	 	 	“Subsidiaries” means those companies over which for the time being the Company has Control
and which are subsidiaries of the Company within the meaning of section 736 of the
Companies Act 1985;
	 
	 	 	“Target Award” means the value determined by the Board for the purposes of granting an
Option to an Eligible Employee who it has selected in its absolute discretion to
participate in the Plan such value being based on market competitive practice for
comparable positions differentiated to reflect individual performance and potential and
used by the Board to determine the objective performance measures applicable to the
exercise of the Option and the maximum number of Shares over which the Option may be
granted;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988;
	 
	 	 	“Trustees” means the trustees from time to time of any employee benefit trust established
by a member of the Group;
	 
	 	 	“UK Listing Authority” the UK Listing Authority within the meaning given to that
expression in the Listing Rules made by the Financial Services Authority pursuant to its
appointment as the relevant competent authority under the Official Listing of Securities
(Change of Competent Authority) Regulations 2000.
	 
	1.2	 	Any reference herein to a statutory provision shall include a reference to that provision as
amended or re-enacted from time to time. Where the context permits the singular shall include the
plural and vice versa and the masculine gender shall include the feminine.
	 
	2.	 	Grant of Options
	 
	2.1	 	Subject to the limitations set out below, the Board may in its absolute discretion during any
Grant Period grant any Eligible Employee an Option in accordance with the terms of the Plan. The
Board shall as soon as reasonably practicable on or after its Date of Grant notify any such
Eligible Employee in writing of the grant of the Option. The notice shall specify:

	 	(a)	 	the number of Shares in respect of which the Option is granted;
	 
	 	(b)	 	the
date on which it is granted;
	 
	 	(c)	 	the Exercise Price;
	 
	 	(d)	 	the objective performance target(s) imposed by the Board for the purposes of clause 5
the text of which must at any time when the Plan has Revenue Approval be approved in
advance by the Board of Inland Revenue; and
	 
	 	(e)	 	the Option Period.

	2.2	 	An Eligible Employee to whom an Option is granted may by notice in writing within 30 days after
the date of grant (or such shorter period of which he is notified) renounce his rights thereunder
in whole, and in such case the Option shall be deemed never to have been granted hereunder, or in
part, and in such case the Option shall be deemed to have been granted only as to the balance.
	 
	2.3	 	The grant of an Option shall be made on the basis that participation in the Plan shall
constitute an agreement to be bound by the rules of the Plan and shall be evidenced by an
instrument executed as a deed (howsoever, including by facsimile signature) in such form as the
Board may from time to time prescribe and shall be personal to the Participant and may not be
transferred, assigned or charged to or, subject to the provisions of clause 6.2, exercised by any
other person. The instrument shall be issued as soon as practicable after the last date on which
an Eligible Employee may renounce his rights under an Option in accordance with clause 2.2.

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	2.4	 	No Option shall be granted under the Plan after the expiry of the Operative Period.
	 
	3.	 	Limitations on Grant of Options
	 
	3.1	 	No Options shall be granted under the Plan:

	 	(a)	 	if as a result the number of Shares issuable on the exercise of such Options, when
aggregated with any other ordinary shares issued by way of subscription out of profits and
with any other ordinary shares issued or capable of being issued by way of subscription on
the exercise of options granted by the Company during the previous ten years under the Plan
and under Any Other Plan, would exceed ten per cent. of the amount of the Company’s
ordinary share capital then in issue; or
	 
	 	(b)	 	if as a result the number of Shares issuable on the exercise of such Options, when
aggregated with any other ordinary shares issued or capable of being issued by way of
subscription on the exercise of options granted by the Company during the previous ten
years under the Plan and Any Other Executive Plan would exceed five per cent. of the amount
of the Company’s ordinary share capital then in issue;

	 	 	PROVIDED THAT for the purpose of applying the limits set out in clauses 3.1(a) and (b) the
number of Shares over which Options may be granted under the Plan shall be reduced by the
number of notional Shares determined by the Board in the manner set out in clause 3.2.
	 
	3.2	 	For the purposes of the proviso to clause 3.1:

	 	(a)	 	the Board shall compute the number of BGI Shares which have been acquired on exercise
of options granted under the BGI Plan in the relevant period or in respect of which options
under the BGI Plan are currently outstanding (less any BGI Shares issued on the exercise of
options granted under the BGI Plan but subsequently purchased by Barclays Bank or any other
member of the Group); and
	 
	 	(b)	 	the Board shall subject to such adjustment or variation as the Board shall in its
absolute discretion consider appropriate convert such BGI Shares into a number of notional
Shares by the application in relation to each such acquisition of or grant of options over,
BGI Shares of the formula:

	 	 	 
	A x B

	 	= D where:
	 	 	 
	C	 	 

	 	A 	 	is the number of BGI Shares acquired by or under option to each relevant
employee;
	 
	 	B 	 	is the price per BGI Share at which such employee acquired or may acquire such
number of BGI Shares;
	 
	 	C 	 	is if and for so long as the Shares are admitted to the Official List of the UK
Listing Authority the greater of the market value of a Share:

	 	(a)	 	on the date of grant of such options; and
	 
	 	(b)	 	on the date of any determination by the Board for the purposes of this
clause 3.2,

	 	 	 	calculated by the Board by reference to the middle-market quotations of a
Share as derived from the Daily Official List of the UK Listing Authority
or if the Shares are not so admitted on such other basis as the Board
shall determine in its absolute discretion;

- 5 -

 

	 	D 	 	is the number of notional Shares represented by the BGI Shares acquired in the
relevant period or in respect of which options are currently outstanding under the
BGI Plan for the purposes of the proviso to clause 3.1.

	3.3	 	No Option shall be granted to an Eligible Employee under the Plan if as a result:

	 	(a)	 	the total Exercise Price of the Shares issuable (or transferable) on the exercise of
such Option when aggregated with the total market price at the
relevant date of grant of shares still capable of being issued (or transferred) on the exercise of options previously
granted to him under the Plan and Any Other Approved Scheme would exceed £30,000 (or its
equivalent in any other currency, taking as the rate of exchange the spot rate for the
currency in question on the relevant Date of Grant as quoted by any of the Company’s
bankers from time to time) or such other amount as may be prescribed by statute from time
to time; and
	 
	 	(b)	 	the Target Award for that Option when aggregated with the Target Award for any other
Option granted to such Eligible Employee in the same Financial Year would exceed 200% of
such Eligible Employee’s remuneration determined for these purposes by the Board in its
absolute discretion.

	4.	 	Exercise of Options
	 
	4.1	 	An Option shall only be exercised by a Participant within its Option Period by his giving
notice in writing to the Company at its registered office in such form as may be prescribed by the
Board from time to time. Such notice shall be signed by the Participant and shall specify the
number of Shares (which shall be either a multiple of 100 or equal to the balance of the Shares
remaining subject to the Option) in respect of which the Option is being exercised. The Shares
needed to satisfy the exercise of the Option may be provided by the Company or the Trustees. The
Participant shall:

	 	(a)	 	supply with such notice:

	 	(i)	 	the instrument evidencing the grant of the relevant Option for cancellation or
amendment; and
	 
	 	(ii)	 	such other documentation as the Board may require; and

	 	(b)	 	pay the full amount of the aggregate Exercise Price for the said Shares in such manner
as the Board may from time to time prescribe (which in the case of Options to the satisfied
by the Trustees shall be payable to the Company as agent for the relevant Trustees)

	 	 	An Option (or part thereof) shall be deemed to have been exercised on the date when such
notice together with a remittance for the Exercise Price, the instrument evidencing the
grant of an Option and any other documents specified by the Board are received by the
Company. Where such exercise is conditional on the fulfilment of the condition specified
in clause 5.2 the date of exercise of the Option or the relevant portion of the Option
shall for these purposes be deemed to be the date on which the Board determines in
accordance with clause 5.3 that the condition has been fulfilled.
	 
	4.2	 	If an Employee Tax Liability for any member of the Group arises on the exercise of the Option
then unless:

	 	(a)	 	the Participant has indicated in the form of exercise notice that he or she will make a
payment to the Company of an amount equal to the Employee Tax Liability; and
	 
	 	(b)	 	the Participant does, within 7 days of being notified by the Company of the amount of
the Employee Tax Liability, make such payment to the Company.

- 6 -

 

	 	 	the Company shall sell sufficient Shares on behalf of the Participant and arrange payment to
the member of the Group of an amount equal to the Employee Tax Liability out of the proceeds of
sale to reimburse the member of the Group.
	 
	4.3	 	An Employee Tax Liability for a member of the Group shall only arise for the purposes of clause
4.2 following the exercise of an Option, if the member of the Group is obliged to (or would suffer
a disadvantage if it were not to) account for any tax and/or for any primary social security
contributions recoverable from the Participant for which the Participant is liable by virtue of the
exercise of the Option.
	 
	4.4	 	The Company or the Trustees as appropriate shall within 30 days after the date of exercise of
the Option either:

	 	(a)	 	allot and thereafter issue; or
	 
	 	(b)	 	transfer

	 	 	the appropriate number of Shares to the Participant (or to his nominee at the Participant’s
written direction) at their Exercise Price and shall deliver to the Participant (or his
nominee, as appropriate) a definitive share certificate in respect thereof (or such other
evidence of allotment and issue as may be prescribed by the Board where such allotment and
issue is by means of a relevant system, as defined in Regulation 2(1) of the Uncertificated
Securities Regulations 1995).
	 
	4.5	 	Any Shares issued pursuant to clause 4.4 shall rank pari passu in all respects with the Shares
in issue on the date of such allotment save that they shall not rank for or be entitled to any
dividend or other distribution or any issue of Shares by way of capitalisation of profits or
reserves or any issue of securities by way of rights which under the terms of a resolution passed
by the Company is to be or is proposed to be paid or made to the holders of Shares on the register
on a date prior to the date of such allotment.
	 
	4.6	 	If and for so long as the Shares are admitted to the Official List of the UK Listing Authority
the Company shall for all Shares allotted pursuant to the exercise of Options apply to:

	 	(a)	 	the UK Listing Authority for a listing; and
	 
	 	(b)	 	the London Stock Exchange for admission to trading.

	5.	 	Limitations on Exercise of Options
	 
	5.1	 	Without prejudice to the following provisions of this clause 5, and subject as provided in
clauses 6 and 7, an Option may be exercised by a Participant who has ceased to be an Eligible
Employee, PROVIDED THAT he is not prohibited from doing so by the provisions of paragraph 9 of
Schedule 4.
	 
	5.2	 	The exercise of an Option by a Participant and if relevant the extent to which it may be so
exercised shall be conditional on the Board being satisfied that such objective performance
target(s) as has been imposed by it on the grant of the Option in accordance with clause 2.1 shall
have been fulfilled.
	 
	5.3	 	Within 30 days of the date of any conditional exercise of the Option the Board shall determine
whether the objective performance target referred to in clause 5.2 has been fulfilled and if
relevant the extent to which it has been fulfilled and shall inform the Participant in writing
accordingly. The determination of the Board shall be final and binding.

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	6.	 	Time for Exercise of Options
	 
	6.1	 	Subject to clauses 6.2, 6.3, 6.4 and 7, an Option may only be exercised during its Option
Period. An Option which is not so exercised shall lapse.
	 
	6.2	 	If a Participant dies his personal representative(s) may exercise his Option at any time before
the expiry of its Option Period and within but not later than 12 months of his death. Any such
Option which is not so exercised shall lapse.
	 
	6.3	 	Subject to clause 5.2, if a Participant ceases to be employed by the Group by reason of:

	 	(a)	 	retirement on or after Normal Retirement Age;
	 
	 	(b)	 	injury;
	 
	 	(c)	 	disability;
	 
	 	(d)	 	ill-health;
	 
	 	(e)	 	dismissal for redundancy within the meaning of the Employment Rights Act 1996;
	 
	 	(f)	 	the company by
which he is employed ceasing to be a member of the Group; or
	 
	 	(g)	 	the undertaking in which he is employed being transferred to a transferee which is not
a member of the Group,

	 	 	he may thereafter exercise his Option at any time before the earlier of the expiry of its
Option Period and within the later to expire of the following periods: 12 months from the
date of such cessation; or 12 months commencing on the third anniversary of the Date of
Grant PROVIDED THAT if a Participant so ceases to be employed by the Group before the third
anniversary of the Date of Grant the Board may in its discretion acting fairly and
reasonably determine that the Option may become exercisable for 12 months from any date
before the third anniversary of the Date of Grant. Any Option which is not so exercised
shall lapse.
	 
	6.4	 	Subject to clause 5.2, if a Participant ceases to be employed by the Group otherwise than by
reason of the events specified in clauses 6.2 and 6.3 which shall include for these purposes where
a Participant is adjudicated bankrupt, his Option shall lapse unless the Board in its discretion
acting fairly and reasonably determines otherwise in which case he may exercise his Option at any
time before the expiry of its Option Period and within the later to expire of the following
periods: 12 months from the date of such cessation; or 12 months commencing on the third
anniversary of the Date of Grant PROVIDED THAT if a Participant so ceases to be employed by the
Group before the third anniversary of the Date of Grant the Board may in its discretion acting
fairly and reasonably determine that the Option may become exercisable for 12 months from any date
before the third anniversary of the Date of Grant. Any Option which is not so exercised shall
lapse. An Option shall lapse on the date on which a Participant transfers assigns or charges or
attempts to transfer, assign or charge his interest in the Option.
	 
	6.5	 	For the purposes of this clause 6, where a Participant’s employment is terminated without
notice or on terms in lieu of notice it shall be deemed to cease on the date on which the
termination takes effect and where the said employment is terminated with notice it shall be deemed
to cease upon the date on which that notice expires.
	 
	7.	 	Takeovers and Liquidations
	 
	7.1	 	Clause 7.2 shall apply:

	 	(a)	 	if any person obtains Control of the Company as a result of making:

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	 	(i)	 	a general offer to acquire the whole of the issued share capital of the Company
(other than that which is already owned by such person) made on a condition such
that if it is satisfied the person making the offer will have Control of the
Company; or
	 
	 	(ii)	 	a general offer to acquire all the Shares (or such Shares as are not already
owned by such person); or

	 	(b)	 	if any person obtains Control of the Company pursuant to a compromise or arrangement
sanctioned by the Court under section 425 of the Companies Act 1985 (a “scheme of
arrangement” for the purposes of this clause 7).

	7.2	 	Subject to clause 5.2, a Participant may exercise his Option at any time before the earlier of
the expiry of its Option Period and the expiry of the appropriate period, as defined in clause 7.3.
Any such Option which is not so exercised shall lapse PROVIDED THAT this clause 7.2 shall not
apply where a Participant by agreement with an Acquiring Company releases his Option in
consideration of the grant to him of a New Option pursuant to clause 8 before the expiry of the
appropriate period referred to in clause 8.4.
	 
	7.3	 	The appropriate period referred to in clause 7.2 is:

	 	(a)	 	in a case falling within clause 7.1(a), a period commencing on the date when the person
making the offer has obtained Control of the Company and any condition subject to which the
offer is made is satisfied and ending on the earlier of:

	 	(i)	 	six months after such date; and
	 
	 	(ii)	 	30 days before the last date on which the person making the offer is permitted
to issue a notice pursuant to section 429 of the Companies Act 1985; and

	 	(b)	 	in a case falling within clause 7.1(b), whichever of the following periods is the first
to expire:

	 	(i)	 	a period of six months commencing with the time when the Court sanctions the
compromise or arrangement; or
	 
	 	(ii)	 	the period commencing with the time when the Court sanctions the compromise or
arrangement and ending on the date when the scheme of arrangement becomes
effective.

	7.4	 	Subject to clause 5.2, if the Company gives notice of a General Meeting to consider a
resolution for the voluntary winding-up of the Company, a Participant may exercise his Option at
any time before the expiry of its Option Period and during the period until such resolution is duly
passed or defeated or withdrawn PROVIDED THAT any exercise pursuant to this clause 7.4 shall be
conditional upon the said resolution being duly passed. If a Participant exercises his Option
pursuant to this clause 7.4 he shall be entitled to share in the assets of the Company with
existing holders of the Shares in the same manner as he would have been entitled had the Shares
been registered in his name before the resolution was passed.
	 
	7.5	 	On the commencement of any liquidation of the Company (subject to clause 7.4 and otherwise than
in connection with a compromise or arrangement as referred to in clause 7.1(b) or clause 8.1(b))
all Options shall lapse.
	 
	8.	 	Replacement of Options on Change of Control of the Company
	 
	8.1	 	Clause 8.2 shall apply where an Acquiring Company:

	 	(a)	 	obtains Control of the Company as a result of making:

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	 	(i)	 	a general offer to acquire the whole of the issued share capital of the Company
(other than that which is already owned by it and/or by any of its subsidiaries)
made on a condition such that if it is satisfied the Acquiring Company will have
Control of the Company; or
	 
	 	(ii)	 	a general offer to acquire all the Shares (or such Shares as are not already
owned by the Acquiring Company and/or by any of its subsidiaries); or

	 	(b)	 	obtains Control of the Company in pursuance of a compromise or arrangement sanctioned
by the court under section 425 of the Companies Act 1985; or
	 
	 	(c)	 	becomes bound or entitled to acquire Shares under sections 428 to 430F of the Companies
Act 1985.

	8.2	 	A Participant may, at any time within the appropriate period as defined in clause 8.4 by
agreement with the Acquiring Company, release any Option of his to the extent to which it is
exercisable pursuant to clause 7 and clause 5.2 (the “Old Option” for the purposes of this clause)
in consideration of the grant to him of a new option (the “New Option” for the purposes of this
paragraph) PROVIDED THAT any New Option satisfies the conditions specified in clause 8.3.
	 
	8.3	 	The New Option must:

	 	(a)	 	be over shares in the Acquiring Company or a Controlling Company which satisfy the
conditions specified in paragraphs 16 to 20 inclusive of Schedule 4 (and the term “Shares”
in this Scheme shall thereafter be construed accordingly);
	 
	 	(b)	 	be a right to acquire such number of shares which on acquisition of the New Option have
an aggregate market value (determined in accordance with Part VIII of the Taxation of
Chargeable Gains Act 1992) equal to the aggregate market value (determined on a like basis)
of the Shares the subject of the Old Option immediately before its release; and
	 
	 	(c)	 	have an exercise price per share such that the aggregate price payable on complete
exercise of the New Option equals the aggregate price which would have been payable on
complete exercise of the Old Option at the time of its release.

	8.4	 	The appropriate period referred to in clause 8.2 is:

	 	(a)	 	in a case falling within clause 8.1(a), six months commencing on the date when the
Acquiring Company making the offer has obtained Control of the Company and any condition
subject to which the offer is made is satisfied;
	 
	 	(b)	 	in a case falling within clause 8.1(b), six months beginning with the time when the
court sanctions the compromise or arrangement; and
	 
	 	(c)	 	in a case falling within clause 8.1(c), the period during which the Acquiring Company
remains so bound or entitled.

	8.5	 	The New Option shall be exercisable in the same manner as the Old Option and subject to the
provisions of the Scheme as it had effect in relation to the Old Option immediately before its
release (and the term “Option” in the Plan shall thereafter be construed accordingly), and the New
Option shall, for all purposes of the Scheme other than clause 8.6, be treated as having been
granted on the date when the corresponding Old Option was granted.
	 
	8.6	 	With effect from the grant of a New Option hereunder, clauses 4, 7, 8, 9, 10.2, 10.4 and 12.1
shall, in relation to the New Option, be construed as if references to the Company were references
to the Acquiring Company, or as the case may be, the Controlling Company.

- 10 -

 

	9.	 	 Variations in the Share Capital of the Company
	 
	9.1	 	If at any time after its Date of Grant and before an Option ceases to be exercisable, there is
a variation of the share capital of the Company which involves the Shares by reason of an issue of
securities by way of rights or capitalisation of reserves or a reduction, subdivision or
consolidation of capital or otherwise, the Exercise Price and/or the number of Shares in respect of
which the Option may be exercised and/or the denomination of the Shares comprised in an Option may
be adjusted to such extent and in such manner as the Board shall determine and the Auditors shall
in their opinion consider and confirm in writing to the Board to be fair and reasonable PROVIDED
THAT:

	 	(a)	 	the aggregate Exercise Price payable on the exercise of an Option shall not be
increased thereby;
	 
	 	(b)	 	the Exercise Price shall not be reduced below the nominal value of a Share (if Shares
are to be subscribed on exercise of an Option); and
	 
	 	(c)	 	any such adjustments shall be subject to prior Revenue Approval at any time when the
Plan has Revenue Approval.

	9.2	 	All Participants shall be notified in writing of any such adjustments as soon as practicable
thereafter and the Company shall be entitled to call in the instruments evidencing the grant of the
Options affected by such adjustments for endorsement or replacement, as may appear appropriate.
	 
	10.	 	Administration of the Plan
	 
	10.1	 	The Plan shall in all respects be administered by the Board. The Board may make such rules
for the conduct of the Plan, not being inconsistent with the provisions hereof, as it shall think
fit. The Board shall have authority, not inconsistent with the provisions hereof, to prescribe the
form or forms of instrument evidencing Options and any other instruments required under the Plan
and to change such forms from time to time. Any dispute regarding the interpretation of the Plan
or the terms of any Option shall be determined by the Board (after seeking such advice as it shall
consider necessary) and its decision shall be final and binding.
	 
	10.2	 	The Company shall at all times maintain an amount of authorised and unissued Shares sufficient
to satisfy outstanding Options under the Plan or to procure that sufficient Shares are available
for transfer to satisfy all Options under which Shares may be acquired.
	 
	10.3	 	The Company may distribute to Participants copies of any notice or document normally sent by
the Company to the holders of Shares.
	 
	10.4	 	The provisions of the Company’s Articles of Association for the time being with regard to the
service of notices upon members of the Company shall apply mutatis mutandis to any notice to be
given by the Company under the Plan to Participants and all notices to be given to the Company
under the Plan shall be delivered or sent by post to the Company at its registered office.
	 
	11.	 	Amendment of the Plan
	 
	11.1	 	Subject to clauses 11.2 and 11.4, the Board shall at any time be entitled to amend by
resolution all or any of the provisions of the Plan, PROVIDED THAT, if an amendment is made at a
time when the Plan has Revenue Approval:

	 	(a)	 	no amendment to the Plan shall have effect until it has been approved by the Board of
Inland Revenue; and

- 11 -

 

	 	(b)	 	nothing shall be done to the Plan which would prejudice the obtaining of Revenue
Approval or cause it to be withdrawn.

	11.2	 	Subject to:

	 	(a)	 	any adjustment made pursuant to clause 9; and
	 
	 	(b)	 	clause 11.3;

	 	 	the definitions of “Eligible Employee” and “Exercise Price” clauses 3, 9.1 and this clause
11 and the rights attaching to shares allotted or transferred under the Plan referred to in
clause 4.5 shall not be amended to the advantage of existing or future Participants without
the prior approval by ordinary resolution of the members of the Company in general meeting.
	 
	11.3	 	Clause 11.2 shall not apply to any amendment which:

	 	(a)	 	is necessary to secure and maintain Revenue Approval and to ensure that Revenue
Approval is not withdrawn pursuant to any statutory modification of the provisions of ITEPA
or the Taxes Act or to take account of a change in legislation or to obtain or maintain
favourable taxation, exchange control or regulatory treatment of the Company, any
Subsidiary or any Participant; or
	 
	 	(b)	 	is a minor amendment which is necessary or desirable to benefit or facilitate the
administration of the Plan.

	11.4	 	No amendment shall be made pursuant to clause 11.1 which would prejudice the subsisting rights
of existing Participants in any manner unless it is made:

	 	(a)	 	with the prior written consent of existing Participants entitled to exercise options in
respect of at least three-quarters of the total number of Shares over which Options shall
at that time be subsisting; or
	 
	 	(b)	 	by a resolution at a meeting of such Participants passed by not less than three
quarters of the Participants who attend and vote either in person or by proxy and for the
purposes of this clause 11.4 the Participants shall be treated as the holders of a separate
class of share capital and the provisions of the Articles of Association of the Company
relating to class meetings shall apply mutatis mutandis.

	11.5	 	Notwithstanding any other provision of the Plan other than clause 11.1 the Board may, in
respect of Options granted to Eligible Employees who are or may become subject to taxation outside
the United Kingdom on their remuneration, amend the provisions of the Plan and the terms of Options
as it considers necessary or desirable to take account of or to mitigate or to comply with relevant
overseas taxation, securities or exchange control laws provided that the terms of Options granted
to such Eligible Employees are not overall more favourable than the terms of Options granted to
other Eligible Employees.
	 
	11.6	 	If any amendment is made pursuant to this clause 11, the Board shall notify all Participants
in writing as soon as practicable thereafter.
	 
	11.7	 	The Board or the Company in general meeting may by resolution to terminate the Plan at any
time but Options previously granted shall continue to be valid and exercisable in accordance with
the provisions of the Plan.
	 
	12.	 	Additional Provisions
	 
	12.1	 	Every Option shall be subject to the condition that no Shares shall be issued or transferred
to a Participant following the exercise of an Option if such issue or transfer would be contrary to
any enactment or regulation for the time being in force of the United Kingdom or of any other
country having jurisdiction in relation thereto. The Company

- 12 -

 

	 	 	shall not be bound to take any action to obtain the consent of any governmental authority
to such issue or transfer or to take any action to ensure that any such issue or transfer
shall be in accordance with any such enactment or regulation if such action could in the
opinion of the Board be unduly onerous.
	 
	12.2	 	The rights and obligations of a Participant under his terms of employment with any member of
the Group shall not be affected by his participation in the Plan and the Plan shall not afford to a
Participant any right to continued employment or any right to compensation in consequence of the
termination of his employment (whether lawful or unlawful) for any reason whatsoever.
	 
	12.3	 	The Company may distribute to Participants copies of any notice or document normally sent by
the Company to the holders of Shares.
	 
	12.4	 	In any matter in which they are required to act hereunder the Auditors shall be deemed to be
acting as experts and not as arbitrators.
	 
	12.5	 	This Plan shall be governed by and construed in accordance with English law.

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Barclays PLC

 

 

 

 

 

 

Rules

of the

Barclays PLC

Unapproved Incentive Share Option Plan

 

 

 

 

 

 

Lovells

Ref: A4/LLW/540042.05

001BB/46856

 

 

Contents

	 	 	 	 	 	 	 
	Clause	 	 	Page No	 
	 	 	 	 	 
	1.
	 	Definitions and Interpretation

	 	 	1	 
	 	 	 	 	 
	2.
	 	Grant of Options

	 	 	3	 
	 	 	 	 	 
	3.
	 	Limitations on Grant of Options

	 	 	4	 
	 	 	 	 	 
	4.
	 	Exercise of Options

	 	 	5	 
	 	 	 	 	 
	5.
	 	Limitations on Exercise of Options

	 	 	7	 
	 	 	 	 	 
	6.
	 	Time for Exercise of Options

	 	 	7	 
	 	 	 	 	 
	7.
	 	Takeovers and Liquidations

	 	 	8	 
	 	 	 	 	 
	8.
	 	Variations in the Share Capital of the Company

	 	 	9	 
	 	 	 	 	 
	9.
	 	Administration of the Plan

	 	 	9	 
	 	 	 	 	 
	10.
	 	Amendment of the Plan

	 	 	10	 
	 	 	 	 	 
	11.
	 	Additional Provisions

	 	 	10	 
	 	 	 	 	 

 

 

Barclays PLC

Unapproved Incentive Share Option Plan

	1.	 	Definitions and Interpretation
	 
	1.1	 	In the Plan the following words and expressions have the meanings set opposite them:
	 
	 	 	“Adoption Date” means 26 April 2000 being the date on which the Plan is adopted by the
Company;
	 
	 	 	“Announcement Date” means the date on which the Company announces its annual, half-yearly
or if relevant quarterly results to the London Stock Exchange in any year within the
Operative Period;
	 
	 	 	“Any Other Executive Plan” means any employees’ share scheme other than the Plan adopted by
the Company in general meeting which provides for the acquisition of
or subscription for shares of the Company by or on behalf of selected employees and/or directors, and which is
not linked to an SAYE contract;
	 
	 	 	“Any Other Plan” means any employees’ share scheme other than the Plan adopted by the
Company in general meeting which provides for the acquisition of or subscription for shares
in the Company by or on behalf of employees or directors;
	 
	 	 	“Auditors” means the auditors for the time being of the Company or in the event of there
being joint auditors such one of them as the Board shall select;
	 
	 	 	“BGI” means Barclays Global Investors UK Holdings Limited;
	 
	 	 	“BGI Plan” means the Barclays Global Investors Equity Ownership Plan adopted by the Company
on 26 April 2000;
	 
	 	 	“BGI Shares” means “A” Ordinary Shares in the capital of BGI;
	 
	 	 	“Barclays Bank” means Barclays Bank PLC;
	 
	 	 	“Board” means the board of directors for the time being of the Company or a committee of
the board of directors of the Company appointed to administer the Plan PROVIDED THAT if any
person obtains Control of the Company the Board or the relevant committee as appropriate
shall consist of the members of the Board or such committee as the case may be immediately
before such Control is obtained;
	 
	 	 	“Company” means Barclays PLC;
	 
	 	 	“Control” means the control of a company within the meaning given to that expression by
section 840 of the Taxes Act and a person shall be deemed to have control of a company if
he and others acting in concert with him have together obtained control of the company
within such meaning;
	 
	 	 	“Date of Grant” means the date on which an Option is granted in accordance with clause 2;
	 
	 	 	“Dealing Day” means a day on which transactions take place on the London Stock Exchange;
	 
	 	 	“Eligible Employee” means any person whose terms of employment require him to devote
substantially the whole of his working time to any member or members of the
Group, but excluding any person who has less than two years service to run before his

 

 

	 	 	Normal Retirement Age unless the Company in general meeting shall have resolved to waive such
requirement in any particular case;
	 
	 	 	“Exercise Price” means subject to clause 8, the price per Share payable on the exercise of an
Option as determined by the Board and as stated when granting an Option in accordance with
clause 2 being:

	 	(a)	 	in the case of an Option to subscribe Shares not less than the greater of:

	 	(i)	 	the nominal value of a Share; and
	 
	 	(ii)	 	if and for so long as the Shares are admitted to the Official List of the UK
Listing Authority, the average middle market quotations of a Share as derived from the
Daily Official List of the UK Listing Authority (rounded up to the nearest whole penny)
over any period of not more than five successive Dealing Days in the period of 30 days
before the Date of Grant PROVIDED THAT any such period of successive Dealing Days falls
within the Grant Period; and
	 
	 	(iii)	 	if the Shares are not so admitted, the market value of a Share determined in
accordance with Part VIII of the Taxation of Chargeable Gains Act 1992;

	 	(b)	 	in any other case, the average purchase price paid by the Trustees to purchase Shares on any
regulated market for the grant of Options over any period not exceeding ten successive Dealing
Days PROVIDED THAT:

	 	(i)	 	not more than 30 days shall elapse after the first Dealing Day taken for these
purposes and the Date of Grant;
	 
	 	(ii)	 	any such period of ten successive Dealing Days falls within the relevant Grant
Period;
	 
	 	(iii)	 	for the purposes of calculating the average purchase price, if the Trustees do not
purchase Shares on any regulated market the average purchase price the Trustees would
have paid had they bought the Shares on such regulated market during the relevant period
as determined by the Trustees; and
	 
	 	(iv)	 	the Trustees notify the Board in writing of the average purchase price paid for the
Shares by the Trustees (or which the Trustees would have paid pursuant to paragraph
(b)(iii) above);

	 	 	“Financial Year” means a financial year of the Company within the meaning given to that
expression by section 742 of the Companies Act 1985;
	 
	 	 	“Grant Period” means any period of three months from:

	 	(a)	 	the Adoption Date;
	 
	 	(b)	 	an Announcement Date PROVIDED THAT if the Company is restricted by statute, order,
regulation or otherwise (including a restriction resulting from the application of the Model
Code for transactions in securities by directors or any comparable code adopted by the Company)
from granting Options within such three month period, the Company may grant Options within the
period of three months after the lifting of such restrictions; or
	 
	 	(c)	 	any date on which changes to the legislation affecting share option schemes is announced or
made;

-2-

 

	 	(d)	 	any time when the Board resolves that exceptional circumstances exist which justify the
grant of Options;

	 	 	“Group” means the Company and all of its Subsidiaries and “member of the Group” shall be
construed accordingly;
	 
	 	 	London Stock Exchange means the London Stock Exchange plc;
	 
	 	 	“Normal Retirement Age” means the earliest age at which an employee can be required to
retire by any member of the Group or, if sooner, the age at which he has agreed to take
early retirement;
	 
	 	 	“Operative Period” means the period of ten years commencing on the Adoption Date;
	 
	 	 	“Option” means a right to buy Shares granted pursuant to the Plan;
	 
	 	 	“Option Period” means subject to clauses 5, 6.2, 6.3, 6.4 and 7, the period during which an
Option shall be exercisable in accordance with the provisions of the Plan as determined by
the Board at its Date of Grant PROVIDED THAT the Board may not specify a period beginning
earlier than three years from its Date of Grant nor ending later than ten years from its
Date of Grant;
	 
	 	 	“Participant” means an Eligible Employee who has been granted an Option or, where
applicable, the personal representative(s) of any such person;
	 
	 	 	“Plan” means the employees’ share scheme herein contained as from time to time amended in
accordance with the provisions hereof which shall be known as the “Barclays PLC Unapproved
Incentive Share Option Plan”;
	 
	 	 	“Shares” means ordinary shares in the capital of the Company;
	 
	 	 	“Subsidiaries” means those companies over which for the time being the Company has Control
and which are subsidiaries of the Company within the meaning of section 736 of the
Companies Act 1985;
	 
	 	 	“Target Award” means the value determined by the Board for the purposes of granting an
Option to an Eligible Employee who it has selected in its absolute discretion to
participate in the Plan, such value being based on market competitive practice for
comparable positions differentiated to reflect individual performance and potential and
used by the Board to determine the performance measures applicable to the exercise of the
Option and the maximum number of Shares over which the Option may be granted;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988;
	 
	 	 	“Trustees” means the trustees from time to time of any employee benefit trust established
by a member of the Group;
	 
	 	 	“UK Listing Authority” means the UK Listing Authority within the meaning given to that
expression in the Listing Rules made by the Financial Services Authority
	 
	 	 	pursuant to its appointment as the relevant competent authority under the Official
Listing of Securities (Change of Competent Authority) Regulations 2000.
	 
	1.2	 	Any reference herein to a statutory provision shall include a reference to that provision as
amended or re-enacted from time to time. Where the context permits the singular shall include the
plural and vice versa and the masculine gender shall include the feminine.
	 
	2.	 	Grant of Options

-3-

 

	2.1	 	Subject to the limitations set out below, the Board may in its absolute discretion during any
Grant Period grant any Eligible Employee an Option in accordance with the terms of the Plan. The
Board shall as soon as reasonably practicable on or after its Date of Grant notify any such
Eligible Employee in writing of the grant of the Option. The notice shall specify:

	 	(a)	 	the number of Shares in respect of which the Option is granted;
	 
	 	(b)	 	the date on which it is granted; (c) the Exercise Price;
	 
	 	(d)	 	the performance target(s) imposed by the Board for the purposes of clause 5; and
	 
	 	(e)	 	the Option Period.

	2.2	 	An Eligible Employee to whom an Option is granted may by notice in writing within 30 days after
the date of grant (or such shorter period of which he is notified) renounce his rights thereunder
in whole, and in such case the Option shall be deemed never to have been granted hereunder, or in
part, and in such case the Option shall be deemed to have been granted only as to the balance.
	 
	2.3	 	The grant of an Option shall be made on the basis that participation in the Plan shall
constitute an agreement to be bound by the rules of the Plan and shall be evidenced by an
instrument executed as a deed (howsoever, including by facsimile signature) in such form as the
Board may from time to time prescribe and shall be personal to the Participant and may not be
transferred, assigned or charged to or, subject to the provisions of clause 6.2, exercised by any
other person. The instrument shall be issued as soon as practicable after the last date on which an
Eligible Employee may renounce his rights under an Option in accordance with clause 2.2.
	 
	2.4	 	No Option shall be granted under the Plan after the expiry of the Operative Period.
	 
	3.	 	Limitations on Grant of Options
	 
	3.1	 	Subject to adjustment pursuant to clause 8, no Options shall be granted under the Plan:

	 	(a)	 	if as a result the number of Shares issuable on the exercise of such Options, when
aggregated with any other ordinary shares issued by way of subscription out of profits and
with any other ordinary shares issued or capable of being issued by way of subscription on
the exercise of options granted by the Company during the
previous ten years under the Plan and under Any Other Plan, would exceed ten per cent. of
the amount of the Company’s ordinary share capital then in issue; or
	 
	 	(b)	 	if as a result the number of Shares issuable on the exercise of such Options, when
aggregated with any other ordinary shares issued or capable of being issued by way of
subscription on the exercise of options granted by the Company during the previous ten
years under the Plan and Any Other Executive Plan would exceed five per cent. of the amount
of the Company’s ordinary share capital then in issue;

	 	 	PROVIDED THAT for the purpose of applying the limits set out in clauses 3.1(a) and (b) the
number of Shares over which Options may be granted under the Plan shall be reduced by the
number of notional Shares determined by the Board in the manner set out in clause 3.2.

-4-

 

	3.2	 	For the purposes of the proviso to clause 3.1:

	 	(a)	 	the Board shall compute the number of BGI Shares which have been acquired on exercise
of options granted under the BGI Plan in the relevant period or in respect of which options
under the BGI Plan are currently outstanding (less any BGI Shares issued on the exercise of
options granted under the BGI Plan but subsequently purchased by Barclays Bank or any other
member of the Group); and
	 
	 	(b)	 	the Board shall, subject to such adjustment or variation as the Board shall in its
absolute discretion consider appropriate, convert such BGI Shares into a number of notional
Shares by the application in relation to each such acquisition of or grant of options over,
BGI Shares of the formula:

	 	 	 	 	 
	 

	 	A x B = D where:
	 	 
	

	 	   C	 	 

	 	A	 	is the number of BGI Shares acquired by or under option to each relevant
employee;
	 
	 	B	 	is the price per BGI Share at which such employee acquired or may acquire such
number of BGI Shares;
	 
	 	C	 	is if and for so long as the Shares are admitted to the Official List of the UK
Listing Authority the greater of the market value of a Share:

	 	(a)	 	on the date of grant of such options; and
	 
	 	(b)	 	on the date of any determination by the Board for the purposes of this clause
3.2,

	 	 	 	calculated by the Board by reference to the middle market quotations of a Share as
derived from the Daily Official List of the UK Listing Authority or if the Shares
are not so admitted on such other basis as the Board shall in its absolute
discretion determine;
	 
	 	 	 	D is the number of notional Shares represented by the BGI Shares acquired in the
relevant period or in respect of which options are currently outstanding under the
BGI Plan for the purposes of the proviso to clause 3.1.

	3.3	 	No Option shall be granted to an Eligible Employee under the Plan if as a result the Target
Award for that Option when aggregated with the Target Award for any other Option granted to such
Eligible Employee in the same Financial Year would exceed 200% of such Eligible Employee’s
remuneration determined for these purposes by the Board in its absolute discretion.
	 
	4.	 	Exercise of Options
	 
	4.1	 	An Option shall only be exercised by a Participant within its Option Period, by his giving
notice in writing to the Company at its registered office in such form as may be prescribed by the
Board from time to time. Such notice shall be signed by the Participant and shall specify the
number of Shares (which shall be either a multiple of 100 or equal to the balance of the Shares
remaining subject to the Option) in respect of which the Option is being exercised. The Shares
needed to satisfy the exercise of the Option may be provided by the Company or the Trustees. The
Participant shall:

	 	(a)	 	supply with such notice:

-5-

 

	 	(i)	 	the instrument evidencing the grant of the relevant Option for cancellation or
amendment; and
	 
	 	(ii)	 	such other documentation as the Board may require;

	 	(b)	 	pay the full amount of the aggregate Exercise Price for the said Shares in such manner
as the Board may from time to time prescribe (which in the case of Options to be satisfied
by the Trustees shall be payable to the Company as agent for the relevant Trustees); and
	 
	 	(c)	 	pay any such additional amount of which the Board my notify the Participant in respect
of any deduction on account of tax or similar liabilities as may be required by law which
may arise on exercise of the Option in such manner as the Board may from time to time
prescribe.
	 
	 	 	 	An Option (or part thereof) shall be deemed to have been exercised on the date when such
notice together with payment of the aggregate Exercise Price due and any such additional
amount (or documentation evidencing arrangements to pay such additional amounts), the
instrument evidencing the grant of an Option and any other documents specified by the Board
are received by the Company. Where such exercise is conditional on the fulfilment of the
condition specified in clause 5.2 the date of exercise of the Option or the relevant
portion of the Option shall for these purposes be deemed to be the date on which the Board
determines in accordance with clause 5.3 that the condition has been fulfilled.
	 
	 	4.2	 	The Company or the Trustees as appropriate shall within 30 days after the date of exercise of
the Option either:
	 
	 	(a)	 	allot and thereafter issue; or
	 
	 	(b)	 	transfer
	 
	 	 	 	the appropriate number of Shares to the Participant (or to his nominee at the Participant’s
written direction) at their Exercise Price and shall deliver to the Participant (or his
nominee, as appropriate) a definitive share certificate in respect
thereof (or such other evidence of allotment and issue as may be prescribed by the Board
where such allotment and issue is by means of a relevant system, as defined in Regulation
2(1) of the Uncertificated Securities Regulations 1995).
	 
	 	4.3	 	Any Shares issued pursuant to clause 4.2 shall rank pari passu in all respects with the Shares
in issue on the date of such allotment save that they shall not rank for or be entitled to any
dividend or other distribution or any issue of Shares by way of capitalisation of profits or
reserves or any issue of securities by way of rights which under the terms of a resolution passed
by the Company is to be or is proposed to be paid or made to the holders of Shares on the register
on a date prior to the date of such allotment.
	 
	 	4.4	 	If and for so long as the Shares are admitted to the Official List of the UK Listing Authority
the Company shall for all Shares allotted pursuant to the exercise of Options apply to:
	 
	 	(a)	 	the UK Listing Authority for a listing; and
	 
	 	(b)	 	the London Stock Exchange for admission to trading.

-6-

 

	5.	 	Limitations on Exercise of Options
	 
	5.1	 	Without prejudice to the following provisions of this clause 5, and subject as provided in
clauses 6 and 7, an Option may be exercised by a Participant who has ceased to be an Eligible
Employee.
	 
	5.2	 	The exercise of an Option by a Participant and if relevant the extent to which it may be so
exercised shall be conditional on the Board being satisfied that such performance target(s) as has
been imposed by it on the grant of the Option in question shall have been fulfilled.
	 
	5.3	 	Within 30 days of the date of any conditional exercise of the Option the Board shall determine
whether the performance target referred to in clause 5.2 has been fulfilled and if relevant the
extent to which it has been fulfilled and shall inform the Participant in writing accordingly. The
determination of the Board shall be final and binding.
	 
	6.	 	Time for Exercise of Options
	 
	6.1	 	Subject to clauses 6.2, 6.3, 6.4 and 7, an Option may only be exercised during its Option
Period. An Option which is not so exercised shall lapse.
	 
	6.2	 	If a Participant dies his personal representative(s) may exercise his Option at any time before
the expiry of its Option Period and within but not later than 12 months from the date of his death.
Any such Option which is not so exercised shall lapse.
	 
	6.3	 	Subject to clause 5.2, if a Participant ceases to be employed by the Group by reason of:

	 	(a)	 	retirement on or after Normal Retirement Age;
	 
	 	(b)	 	injury;
	 
	 	(c)	 	disability;
	 
	 	(d)	 	ill-health;
	 
	 	(e)	 	dismissal for redundancy within the meaning of the Employment Rights Act 1996; (f) the company by
which he is employed ceasing to be a member of the Group; or
	 
	 	(g)	 	the undertaking in which he is employed being transferred to a transferee which is not
a member of the Group,

	 	 	he may thereafter exercise his Option at any time before the earlier of the expiry of its
Option Period and within the later to expire of the following periods: 12 months from the
date of such cessation or 12 months commencing on the third anniversary of the Date of
Grant PROVIDED THAT if a Participant so ceases to be employed by the Group before the third
anniversary of the Date of Grant the Board may in its absolute discretion determine that
the Option may become exercisable for 12 months from any date before such date. Any Option
which is not so exercised shall lapse.
	 
	6.4	 	Subject to clause 5.2, if a Participant ceases to be employed by the Group otherwise than by
reason of the events specified in clauses 6.2 and 6.3 which shall include for these purposes where
a Participant is adjudicated bankrupt, his Option shall lapse unless the Board in its absolute
discretion determines otherwise in which case he may exercise his Option at any time before the
expiry of its Option Period and within the later to expire of the following periods: 12 months from
the date of such cessation or 12 months beginning on the third anniversary of the Date of Grant
PROVIDED THAT if a Participant so ceases to be employed by the Group before the third anniversary
of the Date of Grant the Board

-7-

 

	 	 	may in its absolute discretion determine that the Option may become exercisable for 12
months from any date before such date. Any Option which is not so exercised shall lapse. An
Option shall lapse on the date on which a Participant transfers assigns or charges or
attempts to transfer, assign or charge his interest in the Option.
	 
	6.5	 	For the purposes of this clause 6, where a Participant’s employment is terminated without
notice or on terms in lieu of notice it shall be deemed to cease on the date on which the
termination takes effect and where the said employment is terminated with notice it shall be deemed
to cease upon the date on which that notice expires.
	 
	7.	 	Takeovers and Liquidations
	 
	7.1	 	Clause 7.2 shall apply:

	 	(a)	 	if any person obtains Control of the Company as a result of making:

	 	(i)	 	a general offer to acquire the whole of the issued share capital of the Company
(other than that which is already owned by such person) made on a condition such
that if it is satisfied the person making the offer will have Control of the
Company; or
	 
	 	(ii)	 	a general offer to acquire all the Shares (or such Shares as are not already
owned by such person); or

	 	(b)	 	if any person obtains Control of the Company pursuant to a compromise or arrangement
sanctioned by the Court under section 425 of the Companies Act 1985 (a “scheme of
arrangement” for the purposes of this clause 7).

	7.2	 	Subject to clause 5.2, a Participant may exercise his Option at any time before the earlier of
the expiry of its Option Period and the expiry of the appropriate period, as defined in clause 7.3.
Any such Option which is not so exercised shall lapse.
	 
	7.3	 	The appropriate period referred to in clause 7.2 is:

	 	(a)	 	in a case falling within clause 7.1(a), a period commencing on the date when the person
making the offer has obtained Control of the Company and any condition subject to which the
offer is made is satisfied and ending on the earlier of:

	 	(i)	 	six months after such date; and
	 
	 	(ii)	 	30 days before the last date on which the person making the offer is permitted
to issue a notice pursuant to section 429 of the Companies Act 1985; and

	 	(b)	 	in a case falling within clause 7.1(b), whichever of the following periods is the first
to expire:

	 	(i)	 	a period of six months commencing with the time when the Court sanctions the
compromise or arrangement; or
	 
	 	(ii)	 	the period commencing with the time when the Court sanctions the compromise or
arrangement and ending on the date when the scheme of arrangement becomes
effective.

	7.4	 	If the Company gives notice of a General Meeting to consider a resolution for the voluntary
winding-up of the Company, a Participant may exercise his Option at any time before the expiry of
its Option Period and during the period until such resolution is duly passed or defeated or
withdrawn PROVIDED THAT any exercise pursuant to this clause

-8-

 

	 	7.4	 	shall be conditional upon the said resolution being duly passed. If a Participant
exercises his Option pursuant to this clause 7.4 he shall be entitled to share in the
assets of the Company with existing holders of the Shares in the same manner as he would
have been entitled had the Shares been registered in his name before the resolution was
passed.

	7.5	 	On the commencement of any liquidation of the Company (subject to clause 7.4 and otherwise than
in connection with a compromise or arrangement as referred to in clause 7.1(b)) the Option shall
lapse.
	 
	8.	 	Variations in the Share Capital of the Company
	 
	8.1	 	If at any time after its Date of Grant and before an Option ceases to be exercisable, there is
a variation or reorganisation of the share capital of the Company which involves the Shares by
reason of an issue of securities by way of rights or capitalisation of reserves or a reduction,
sub-division or consolidation of capital or otherwise, the Exercise Price and/or the number of
Shares in respect of which the Option may be exercised and/or the denomination of the Shares
comprised in an Option may be adjusted to such extent and in such manner as the Board shall
determine and the Auditors shall in their opinion consider and confirm in writing to the Board to
be fair and reasonable PROVIDED THAT:

	 	(a)	 	the aggregate Exercise Price payable on the exercise of an Option shall not be
increased thereby;
	 
	 	(b)	 	the Exercise Price shall not be reduced below the nominal value of a Share if Shares
are to be subscribed on exercise of an Option.

	8.2	 	The Participant shall be notified in writing of any such adjustments as soon as practicable
thereafter and the Company shall be entitled to call in the instrument evidencing the grant of
the Option affected by such adjustments for endorsement or replacement, as may appear appropriate.
	 
	9.	 	Administration of the Plan
	 
	9.1	 	The Plan shall in all respects be administered by the Board. The Board may make such rules for
the conduct of the Plan, not being inconsistent with the provisions hereof, as it shall think fit.
The Board shall have authority, not inconsistent with the provisions hereof, to prescribe the form
or forms of instrument evidencing Options and any other instruments required under the Plan and to
change such forms from time to time. Any dispute regarding the interpretation of the Plan or the
terms of any Option shall be determined by the Board (after seeking such advice as it shall
consider necessary) and its decision shall be final and binding.
	 
	9.2	 	The Company shall at all times maintain an amount of authorised and unissued Shares sufficient
to satisfy outstanding Options under the Plan or to procure that sufficient Shares are available
for transfer to satisfy all Options under which Shares may be acquired.
	 
	9.3	 	The Company may distribute to Participants copies of any notice or document normally sent by
the Company to the holders of Shares.
	 
	9.4	 	The provisions of the Company’s Articles of Association for the time being with regard to the
service of notices upon members of the Company shall apply mutatis mutandis to any notice to be
given by the Company under the Plan to Participants and all notices to be given to the Company
under the Plan shall be delivered or sent by post to the Company at its registered office.

-9-

 

	10.	 	Amendment of the Plan
	 
	10.1	 	Subject to:

	 	(a)	 	any adjustment made pursuant to clause 8; and
	 
	 	(b)	 	clause 10.2; and

(c) clause 10.3
	 
	 	(c)	 	clause 10.3

	 	 	the Board shall at any time be entitled to amend by resolution all or any of the provision
of the Plan PROVIDED THAT the definitions of the “Eligible Employee” and “Exercise Price”,
clauses 3, 8.1 and this clause 10 and the rights attaching to Shares allotted or
transferred under the Plan referred to in clause 4.3 shall not be amended to the advantage
of existing or future Participants without the prior approval by ordinary resolution of the
members of the Company in general meeting.
	 
	10.2	 	Clause 10.1 shall not apply to any amendment which:

	 	(a)	 	is necessary to take account of a change in legislation or to obtain or maintain
favourable taxation, exchange control or regulatory treatment of the Company, any
Subsidiary or any Participant; or
	 
	 	(b)	 	is a minor amendment which is necessary or desirable to benefit or facilitate the
administration of the Plan.

	10.3	 	No amendment shall be made pursuant to clause 10.1 which would prejudice the subsisting rights
of existing Participants in any manner unless it is made:

	 	(a)	 	with the prior written consent of existing Participants entitled to exercise options in
respect of at least three-quarters of the total number of Shares over which Options shall
at that time be subsisting; or
	 
	 	(b)	 	by a resolution at a meeting of such Participants passed by not less than three-quarters of the Participants who attend and vote either in person or by proxy and for the
purposes of this clause 10.3 the Participants shall be treated as the holders of a separate
class of share capital and the provisions of the Articles of Association of the Company
relating to class meetings shall apply mutatis mutandis.

	10.4	 	Notwithstanding any other provisions of the Plan the Board may, in respect of Options granted
to Eligible Employees who are or may become subject to taxation outside the United Kingdom on their
remuneration, amend the provisions of the Plan and the terms of Options as it considers necessary
or desirable to take account of or to mitigate or to comply with relevant overseas taxation,
securities or exchange control laws provided that the terms of Options granted to such Eligible
Employees are not overall more favourable than the terms of Options granted to other Eligible
Employees.
	 
	10.5	 	If any amendment is made pursuant to this clause 10, the Board shall notify all Participants
in writing as soon as practicable thereafter.
	 
	10.6	 	The Board or the Company in general meeting may by resolution to terminate the Plan at any
time but Options previously granted shall continue to be valid and exercisable in accordance with
the provisions of the Plan.
	 
	11.	 	Additional Provisions

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	11.1	 	Every Option shall be subject to the condition that no Shares shall be issued or transferred
to a Participant following the exercise of an Option if such issue or transfer would be contrary to
any enactment or regulation for the time being in force of the United Kingdom or of any other
country having jurisdiction in relation thereto. The Company shall not be bound to take any action
to obtain the consent of any governmental authority to such issue or transfer or to take any action
to ensure that any such issue or transfer shall be in accordance with any enactment or regulation
if such action could in the opinion of the Board be unduly onerous.
	 
	11.2	 	The rights and obligations of a Participant under his terms of employment with any member of
the Group shall not be affected by his participation in the Plan and the Plan shall not afford to a
Participant any right to continued employment or any right to compensation in consequence of the
termination of his employment (whether lawful or unlawful) for any reason whatsoever.
	 
	11.3	 	The Company may distribute to Participants copies of any notice or document sent by the
Company to the holders of Shares.
	 
	11.4	 	In any matter in which they are required to act hereunder the Auditors shall be deemed to be
acting as experts and not as arbitrators.
	 
	11.5	 	This Plan shall be governed by and construed in accordance with English law.

-11-

 

Appendix to the Barclays PLC Incentive Share Option Plan

Effect and Purpose

     This Appendix shall take effect as if the Rules of the Plan were set out herein subject to the
following modifications. The Rules of the Plan as modified herein shall apply to any Option so
granted to an Eligible Employee who is resident in France on the Date of Grant of such Option
unless expressly specified to the contrary so that such Participants in the Plan will be eligible
to take advantage of the preferential tax regime for Options granted to French employees.

	1.	 	Definitions
	 
	 	 	The definition of “Eligible Employee” in Rules 1.1 of the Plan is modified by adding to the
end of the definition the following words:
	 
	 	 	“and who is both an employee and: a director of the Company; or a director of any member of
the Group; or a senior manager of the Company; or a senior manager of a member of the
Group;”
	 
	1.1	 	The definition of “Exercise Price” is modified by:

	 	(a)	 	deleting in sub paragraph (a) the words “in the case of an Option to subscribe Shares”;
	 
	 	(b)	 	deleting the reference to (a);
	 
	 	(c)	 	by adding a new sub-paragraph (iii) as follows:
	 
	 	 	 	"(iii) if and for so long as the Shares are admitted to the Official List of the
London Stock Exchange 80% of the average middle market quotations of a Share as
derived from the Daily Official List of the London Stock Exchange (rounded up to
the nearest whole penny) over the period of 20 consecutive Dealing Days preceding
the Date of Grant;”;
	 
	 	(d)	 	renumbering sub-paragraph (iii) as sub-paragraph (iv); and
	 
	 	(e)	 	deleting sub-paragraph (b) in its entirety.

	1.2	 	The definition of “Grant Period” is modified by the addition, at the end of the definition, of
the following:
	 
	 	 	“PROVIDED THAT no Option may be granted in the period of 20 consecutive Dealing Days
following the payment by the Company of a dividend.”
	 
	1.3	 	The definition of “Option Period” is modified by:

	 	(a)	 	inserting “, 6.5” after the number “6.4”; and
	 
	 	(b)	 	deleting the word “three” and replacing it with the word “four”.

	1.4	 	The definition of “Trustees” is deleted in its entirety.
	 
	2.	 	Limitations on Grant of Options
	 
	2.1	 	Rule 3.1 shall be modified by the addition of a new clause 3.1(c) as follows:

 

 

	 	 	“(c) if as a result the number of Shares issuable on the exercise of such Options when
aggregated with any other ordinary shares issued or capable of being issued by way of
subscription on the exercise of options granted by the Company under the Plan as at the
Date of Grant of an Option would exceed one-third of the amount of the Company’s ordinary
share capital then in issue.”
	 
	2.2	 	The final paragraph of clause 3.1 is amended by deleting the words “clauses 3.1(a) and (b)” and
replacing them with the words “clause 3.1(a), (b) and (c)”.
	 
	2.3	 	A new clause 3.4 is added as follows:
	 
	 	 	No Option shall be granted to an Eligible Employee under the Plan if on the proposed Date
of Grant, the Eligible Employee owns 10% or more of the issued share capital of the Company
at that time.
	 
	3.	 	Exercise of Options
	 
	3.1	 	Rule 4.1 is modified by:

	 	(a)	 	deleting the words “The Shares needed to satisfy the exercise of the Option may be
provided by the Company or the Trustees.”; and
	 
	 	(b)	 	in sub-paragraph (b) deleting the words “(which in the case of Options to be satisfied
by the Trustees shall be payable to the Company as agent for the relevant Trustees)”.

	3.2	 	Rule 4.2 is modified by:

	 	(a)	 	deleting the words “or the Trustees as appropriate”;
	 
	 	(b)	 	deleting the word “either” and the colon that follows it;
	 
	 	(c)	 	deleting the reference to (a);
	 
	 	(d)	 	deleting “; or” following the word “issue”; and
	 
	 	(e)	 	deleting sub-paragraph (b) in its entirety.

	4.	 	Time for Exercise of Options
	 
	4.1	 	Rule 6.1 is modified by inserting “, 6.5” after the number “6.4”.
	 
	4.2	 	In rule 6.2, the number “12” is deleted and is replaced with the number “6”.
	 
	4.3	 	Rule 6.3 is modified by:

	 	(a)	 	deleting in sub-paragraphs (a) the words “on or after Normal Retirement Age” and
replacing them with “other than as contemplated in Rule 6.4”;
	 
	 	(b)	 	deleting sub-paragraph (e) in its entirety;
	 
	 	(c)	 	renumbering sub-paragraph (f) as sub-paragraph (e);
	 
	 	(d)	 	renumbering sub-paragraph (g) as sub-paragraph (f);

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	 	(e)	 	deleting all references to the “third anniversary” and replacing them with the words
“fourth anniversary”.

	4.4	 	A new Rule 6.4 is added as follows:
	 
	 	 	“A Participant may exercise his Option at any time before a three month period ending on
the date on which he ceases to be employed by the Group by reason of:

	 	(a)	 	retirement at the Normal Retirement Age; or
	 
	 	(b)	 	dismissal for redundancy;

	 	 	and, in the event the option is not so exercised, at any time before the earlier of the
expiry of its Option Period and within the later to expire of the following periods: 12
months from the date of such cessation or 12 months commencing on the fourth anniversary of
the Date of Grant PROVIDED THAT if a Participant so ceases to be employed by the Group
before the fourth anniversary of the Date of Grant the Board may in its absolute discretion
determine that the Option may become exercisable for 12 months from any date before such
date. Any Option which is not so exercised shall lapse.”
	 
	4.5	 	Rule 6.4 is renumbered as Rule 6.5 and Rule 6.5 is renumbered as Rule 6.6.
	 
	4.6	 	Rule 6.5 (as renumbered) is modified by:

	 	(a)	 	deleting the words “clauses 6.3 and 6.3” and replacing them with the words “clauses
6.2, 6.3 and 6.4”; and
	 
	 	(b)	 	deleting all references to the “third anniversary” replacing them with the words
“fourth anniversary”.

	5.	 	Administration of the Plan
	 
	5.1	 	Rule 9.2 is modified by deleting the words “or to procure that sufficient Shares are available
for transfer to satisfy all Options under which Shares may be acquired”.
	 
	6.	 	Amendment of Scheme
	 
	6.1	 	Rule 10.3 is modified by:

	 	(a)	 	deleting the colon after the word “made”;
	 
	 	(b)	 	adding, after the word “made”, the following:
	 
	 	 	 	“with the prior written consent of each existing Participant. For the avoidance,
of doubt, the provisions of this clause 10.3 will only apply to Participants who
are employed in France by a member of the Group, at the time the amendments to the
Plan are proposed.”
	 
	 	(c)	 	deleting sub-paragraphs (a) and (b) in their entirety.

-3-exv4w6

 

Exhibit 4.6

 

 

Exhibit 4.6

	 	 	 	 	 
	Dated
	 	10 January
	 	2002

 

 

Barclays Plc

- and -

Barclays Bank Trust Company Limited

 

 

CONFORMED COPY

Trust Deed

- of the -

Barclays Group Share Incentive Plan

 

 

Approved by the Board of Inland Revenue (ref A1001/PC)

on 14 January 2002

 

 

Lovells

Ref: A4/DHL/LLW/551310/001BB/46856

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page No	 
	1.   Definitions
	 	 	1	 
	2.   Trusts of the Plan
	 	 	7	 
	3.   Company’s and Participating Companies’ Obligations
	 	 	7	 
	4.   Investment
	 	 	8	 
	5.   Trustees’ Obligations
	 	 	9	 
	6.   Application of the Plan to Subsidiaries
	 	 	11	 
	7.   Voting Rights and Directions
	 	 	12	 
	8.   Trustees’ Administration and Powers
	 	 	12	 
	9.   Trustees’ Protection and Charges
	 	 	13	 
	10. Appointment, Removal, Retirement and Residence of Trustees
	 	 	14	 
	11. Amendment of the Plan
	 	 	15	 
	12. Termination of the Plan
	 	 	16	 
	13. Governing Law
	 	 	17	 
	 
	 	 	 	 
	Schedule
	 	 	18	 
	1.   Invitations to Participate in the Plan
	 	 	18	 
	2.   Participation – Holding Period, Forfeiture, Retirement Age and Group Plans Treated as a Single Plan
	 	 	18	 
	3.   Free Shares
	 	 	19	 
	4.   Partnership Shares
	 	 	20	 
	5.   Matching Shares
	 	 	22	 
	6.   Dividend Shares
	 	 	23	 
	7.   Limits on Participation
	 	 	24	 
	8.   Shares
	 	 	25	 
	9.   Rights Issues and Capitalisation Issues
	 	 	25	 
	10. Reconstruction and Takeover
	 	 	26	 
	11. Scrip Dividends
	 	 	26	 
	12. Fractional Entitlements
	 	 	27	 
	13. Circulars and Notices
	 	 	27	 
	14. Disposals And Payments
	 	 	27	 
	15. Notices
	 	 	28	 
	16. Information
	 	 	28	 
	17. Disputes
	 	 	29	 
	18. Terms of Employment
	 	 	29	 

 

 

This Deed is made the 10th day of January 2002

Between: 

	(1)	 	Barclays PLC (Registered Number 48839) whose registered office is at 54 Lombard Street,
London, EC3P 3AH (the “Company”); and
	 
	(2)	 	Barclays Bank Trust Company Limited (Registered Number 920880) whose registered office is at 54
Lombard Street, London, EC3P 3AH (the “Trustees”).

Whereas: 

	(A)	 	The members of the Company in general meeting resolved on 26 April 2000 to authorise the
directors of the Company to establish an approved share incentive plan to be called the Barclays
Group Share Incentive Plan (the “Plan”) and on 9 January 2002 the Share Schemes Committee, a duly
authorised committee of the board of the Company approved the adoption and implementation of the
Plan.
	 
	(B)	 	The Plan is established as an employees’ share scheme as defined in section 743 of the
Companies Act 1985 to enable employees of the Company and its subsidiaries to acquire ordinary
shares in the capital of the Company on the terms and in the manner hereinafter appearing and
within the provisions of Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003 (“Approved
Share Incentive Plans”) (“Schedule 2”).
	 
	(C)	 	It is intended that the Plan shall be submitted for approval by the Board of Inland Revenue as
a share incentive plan pursuant to Schedule 2.
	 
	(D)	 	The Trustees have agreed to be the original trustees of the Plan on the terms of this Deed and
the rules contained in the Schedule hereto as from time to time amended.

This Deed Witnesses: 

	1.	 	Definitions 
	 
	1.1	 	In this Plan the following words and expressions have the meanings set opposite them:
	 
	 	 	“Accumulation Period” means in relation to Partnership Shares, such period as determined by
the Board not exceeding 12 months (or such other period as may be specified from time to
time in Schedule 2) during which the Trustees accumulate an Eligible Employee’s Partnership
Share Money before acquiring Partnership Shares on behalf of such employee or repaying it
to such employee;
	 
	 	 	“Acquisition Date” means:

	 	(a)	 	in relation to Partnership Shares with no Accumulation Period, the date selected by the
Trustees in their absolute discretion being a date within 30 days (or such other period as
may be specified from time to time in Schedule 2) after the last date on which the
Partnership Share Money in relation to the Partnership Shares was deducted;
	 
	 	(b)	 	in relation to Partnership Shares with an Accumulation Period, the date selected by the
Trustees in their absolute discretion being a date within 30 days (or such other period as
may be specified from time to time in Schedule 2) after the end of the Accumulation Period;
and

 

 

	 	(c)	 	in relation to Dividend Shares, the date selected by the Trustees in their absolute
discretion being a date within 30 days (or such other period as may be specified from time to
time in Schedule 2) after the date on which the cash dividend is received by the Trustees in
respect of Plan Shares;

	 	 	“Any Other Plan” means any employees’ share scheme other than the Plan adopted by the Company in
general meeting which provides for the acquisition of Shares by or on behalf of employees or
directors;
	 
	 	 	“Appropriation” means a gift by way of the transfer of the beneficial ownership of specific
Shares to an Eligible Employee by the Trustees pursuant to the Plan and the expression
“appropriated” shall be construed accordingly;
	 
	 	 	“Appropriation Date” means any day on which Free Shares or Matching Shares are appropriated to
an Eligible Employee by the Trustees pursuant to the Plan;
	 
	 	 	“Approval Date” means the date on which the Company receives written notification from the Board
of Inland Revenue that the Plan has been approved by the Inland Revenue;
	 
	 	 	“Associated Company” means an associated company as defined in paragraph 94 of Schedule 2
(Meaning of “associated company”);
	 
	 	 	“Award” means:

	 	(a)	 	in relation to Free Shares and/or Matching Shares the Appropriation of such Shares in
accordance with the Plan; and
	 
	 	(b)	 	in relation to Partnership Shares, the acquisition of such Shares in accordance with the
Plan

	 	 	and the expression “awarded” shall be construed accordingly; “BGI” means
Barclays Global Investors UK Holdings Limited; “BGI Plan” means the Barclays
Global Investors Equity Ownership Plan; “BGI Shares” means “A” Ordinary Shares
in the capital of BGI;
	 
	 	 	“Board” means the board of directors of the Company or a duly authorised committee of the Board;
	 
	 	 	“Capital Receipt” means a capital receipt within the meaning given to that expression in section
502 of Chapter 6 (meaning of “capital receipt” in respect of section 501 of Chapter 6);
	 
	 	 	"Chapter 6” means Chapter 6 of Part 7 of ITEPA (Approved Share Incentive Plan);
	 
	 	 	“Contract of Participation” means a contract in respect of Free Shares entered into by the
Participant, the Company and the Trustees as contemplated by Part 5 (Free Shares) of Schedule 2
in such form as determined by the Board from time to time and which complies with the provisions
of Schedule 2;
	 
	 	 	“Control” means the control of a company within the meaning given to that expression in section
840 of the Taxes Act;
	 
	 	 	“Dealing Day” means a day on which transactions take place on the London Stock Exchange;
	 
	 	 	“Deed” means this Deed as amended from time to time;

-2-

 

	 	 	“Dividend Shares” means Shares which are acquired on behalf of a Participant by the Trustees
using cash dividends received in respect of the Participant’s Plan Shares and reinvested in
accordance with Rule 6 for the time being held by the Trustees on his behalf pursuant to the
Plan and which are:

	 	(a)	 	of the same class and carry the same rights as the Plan Shares in respect of which the cash
dividend is paid; and
	 
	 	(b)	 	not subject to forfeiture

	 	 	and where the context so admits includes any New Shares held by the Trustees on his behalf
pursuant to the Plan;
	 
	 	 	“Eligible Employee” means any person who:

	 	(a)	 	is an employee of a Participating Company on the Qualifying Date, or if the Qualifying Date
is not the Appropriation Date or the Acquisition Date is an employee of a Participating Company
on the Appropriation Date or Acquisition Date;
	 
	 	(b)	 	is a UK resident tax payer within the meaning of paragraph 8(2) of Schedule 2 (all-employee
nature of plan) PROVIDED THAT this requirement may be waived by the Board in any particular
case;
	 
	 	(c)	 	is not prohibited from participating in the Plan pursuant to paragraph 19 of Schedule 2 (The
“no material interest” requirement);
	 
	 	(d)	 	is not eligible at the same time to participate in an award of shares in another approved
share incentive plan established by the Company or by a connected company as provided in and
within the meaning of paragraph 18 of Schedule 2 (Requirement not to participate in other SIPs);
and
	 
	 	(e)	 	has on the Qualifying Date such Qualifying Period (if any) of continuous employment with the
Company or any Qualifying Company as the Board may determine.

	 	 	“Free Shares” means Shares appropriated to a Participant under Rule 3 for the time being held by
the Trustees on his behalf pursuant to the Plan and, where the context so admits includes any
New Shares held by the Trustees on his behalf pursuant to the Plan;
	 
	 	 	“Group” means the Company and its Subsidiaries and “member of the Group” shall be construed
accordingly;
	 
	 	 	“Holding Period” means the period which begins on the Appropriation Date or the Acquisition
Date as the case may be and which shall end:

	 	(a)	 	in the case of Free Shares and Matching Shares, at least three years and no later than five
years from their Appropriation Date (or such other period as may be permitted from time to time
by Schedule 2) as specified by the Board from time to time in accordance with Rule 2; and
	 
	 	(b)	 	in the case of Dividend Shares, three years from their Acquisition Date, (or such other
period as may be specified from time to time by Schedule 2)

	 	 	PROVIDED THAT:

	 	(i)	 	in each case, the period shall end on the date on which the Participant ceases to be
an employee of the Company or an Associated Company if earlier; and

-3-

 

	 	(ii)	 	for the purposes of this definition a Participant shall not be treated as ceasing
to be an employee of the Company or an Associated Company until such time as he is no
longer an employee of any such company;

	 	 	“Initial Market Value” means:

	 	(a)	 	if and for so long as the Shares are admitted to the Official List of the UK Listing
Authority:

	 	(i)	 	in relation to Free Shares, Matching Shares, Partnership Shares with no Accumulation
Period and Dividend Shares which are:

	 	(aa)	 	acquired wholly or partly by the Trustees by subscription, the average of
the middle market quotations of a Share as derived from the Daily Official List
of the UK Listing Authority over the period of five consecutive Dealing Days
ending immediately before the Appropriation Date or the Acquisition Date as
determined by the Trustees; or
	 
	 	(bb)	 	acquired by the Trustees by purchase, the average purchase price per Share
paid by the Trustees (excluding the costs of purchase and stamp duties) to
purchase Shares on the Appropriation Date or the Acquisition Date PROVIDED THAT
if the Shares:

	 	(1)	 	are not all acquired on the relevant Appropriation Date or Acquisition
Date; or
	 
	 	(2)	 	are acquired otherwise than by means of a purchase of Shares on a
regulated market

	 	 	 	the average purchase price per share shall be the average of the middle
market quotations of a share as derived from the Daily Official List of the UK
Listing Authority on the Dealing Day immediately before the relevant
Appropriation Date or Acquisition Date as determined by the Trustees; or
	 
	 	(cc)	 	acquired by the Trustees by subscription and/or by purchase, such value per
Share calculated on such other basis as may be agreed from time to time by the
Trustees and the Inland Revenue in accordance with paragraph 92 of Schedule 2
(Determination of market value):

	 	(ii)	 	in relation to Partnership Shares with an Accumulation Period, the lower of the
market value of a Share:

	 	(aa)	 	at the beginning of the Accumulation Period; and
	 
	 	(bb)	 	on the
Acquisition Date,

	 	 	 	PROVIDED THAT market value for these purposes means:

	 	(aa)	 	on any day the average as determined by the Trustees of the middle market
quotations of a Share as derived from the Daily Official List of the UK Listing
Authority over the period of five consecutive Dealing Days ending immediately
before such day; or
	 
	 	(bb)	 	such value per share calculated on such other basis as may be agreed
between the Trustees and the Inland Revenue in

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	 	 	 	accordance with paragraph 92 of Schedule 2 before the beginning of
the Accumulation Period, and

	 	(b)	 	if the Shares are not admitted to the Official List of the UK Listing Authority:

	 	(i)	 	in relation to Free Shares, Matching Shares, Partnership Shares with no
Accumulation Period and Dividend Shares, on any day the market value of a Share
determined in accordance with the provisions of Part VIII of the Taxation of
Chargeable Gains Act 1992 and agreed for the purposes of the Plan with the Inland
Revenue Shares Valuation on or before that day; and
	 
	 	(ii)	 	in relation to Partnership Shares with an Accumulation Period, the lower of
the market value of a Share determined as described in paragraph (b)(i) above:

	 	(aa)	 	at the beginning of the Accumulation Period; and
	 
	 	(bb)	 	on the Acquisition Date;

	 	 	“ITEPA” means the Income Tax (Earnings and Pensions) Act
2003; “London Stock Exchange” means the London Stock Exchange plc;
	 
	 	 	“Matching Shares” means Shares appropriated to a Participant under Rule 5 for the time
being held by the Trustees on his behalf pursuant to the Plan and which are of the same
class and carry the same rights as the Partnership Shares to which they relate and where
the context so admits includes any New Shares held by the Trustees on his behalf pursuant
to the Plan;
	 
	 	 	“New Shares” means new shares within the meaning of paragraph 87 of Schedule 2
(Consequences of company reconstructions);
	 
	 	 	“Participant” means any Eligible Employee to whom the Trustees have awarded Shares;
	 
	 	 	“Participating Company” means the Company and any Subsidiary which participates in the Plan
in accordance with clause 6.1 and which is bound by the provisions of the Plan;
	 
	 	 	“Partnership Shares” means Shares which are acquired on behalf of a Participant by the
Trustees under Rule 4 and are registered in the name of the Trustees (or any other person
nominated by the Board) to be held by the Trustees on behalf of the Participant pursuant to
the Plan and where the context so admits includes any New Shares held by the Trustees on
his behalf pursuant to the Plan;
	 
	 	 	“Partnership Share Agreement” means an agreement in such form as determined by the Board
from time to time which complies with the provisions of Schedule 2 made between the
Company, the Trustees and an Eligible Employee under which:

	 	(a)	 	the Eligible Employee authorises the Company to deduct (or procure that his employing
Participating Company deducts) part of his Salary for the purchase of Partnership Shares;
and
	 
	 	(b)	 	the Company agrees to give effect to the agreement by making (or procuring that the
relevant Participating Company makes) deductions from such employee’s Salary of such amount
and at such intervals as may be agreed from time to time (so that the limits in paragraph
46 of Schedule 2 (Maximum amount of deductions) are not infringed) and undertakes to
arrange for the acquisition of Partnership Shares by the Trustees on behalf of the Eligible
Employee in accordance with the Plan using the amounts so deducted;

-5-

 

	 	 	“Partnership Share Money” means amounts deducted from an Eligible Employee’s Salary under the
terms of a Partnership Share Agreement;
	 
	 	 	“Plan” means the Barclays Group Share Incentive Plan established by this Deed including the
Schedule and any Partnership Share Agreement or Contract of Participation issued to Eligible
Employees or Participants in accordance with the Schedule each as amended from time to time in
accordance with the provisions of this Deed;
	 
	 	 	“Plan Shares” means Free Shares, Matching Shares, Partnership Shares and Dividend Shares;
	 
	 	 	“Qualifying Company” means a company that:

	 	(a)	 	is a Participating Company at the end of the Qualifying Period; or
	 
	 	(b)	 	when the individual was employed by it it was:

	 	(i)	 	a Participating Company; or;);
	 
	 	(ii)	 	an Associated Company of the Participating Company or any other Company qualifying
under paragraph 17 of Schedule 2 (Meaning of “qualifying company”);

	 	 	“Qualifying Date” means the date on which eligibility to participate in the Plan is determined
being:

	 	(a)	 	in the case of Free Shares the Appropriation Date;
	 
	 	(b)	 	in the case of Partnership Shares or Matching Shares;

	 	(i)	 	if there is no Accumulation Period, the date that Partnership Share Money is
deducted in respect of the Partnership Shares; and
	 
	 	(ii)	 	if there is an Accumulation Period, the date of the first deduction of Partnership
Share Money in respect of the Partnership Shares in the Accumulation Period,

	 	 	or subject to the definition of “Qualifying Period” such other date determined by the
Trustees;
	 
	 	 	“Qualifying Period” means:

	 	(a)	 	in the case of Free Shares, a period of not more than 18 months ending on the Appropriation
Date; and
	 
	 	(b)	 	in the case of Partnership Shares with or without Matching Shares, where there is an
Accumulation Period a period of not more than six months ending with the start of the
Accumulation Period; and
	 
	 	(c)	 	in the case of Partnership Shares with or without Matching Shares where there is no
Accumulation Period a period of not more than 18 months ending with the deduction of the
Partnership Share Money relating to the Partnership Shares

	 	 	but in each case so that in respect of an Award the same Qualifying Period applies to all
Eligible Employees;
	 
	 	 	“Reconstruction or Takeover” means any transaction affecting Plan Shares as mentioned in
paragraph 37 of Schedule 2 (Holding period: power of participants to direct trustees to accept
general offers etc.);

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	 	 	“Relevant Amount” means £3,000 or such other sum as may be prescribed from time to time in
paragraph 35 of Schedule 2 (Maximum annual award);
	 
	 	 	“Rules” means the rules of the Plan set out in the Schedule as amended from time to time in
accordance with the provisions of this Deed;
	 
	 	 	“Salary” means salary within the meaning of paragraph 43(4) of Schedule 2 (Partnership
shares: introduction);
	 
	 	 	“Schedule” means the schedule to this Deed;
	 
	 	 	“Share” means an ordinary share in the capital of the Company which satisfies the
conditions set out in Part 4 of Schedule 2 (Types of shares that may be awarded) or, where
the context permits, in the event of a Reconstruction or Takeover of
the Company, such shares, securities or rights of any description which form part of any new holding as
defined in paragraph 87 of Schedule 2 (Consequences of company reconstructions);
	 
	 	 	“Subsidiary” means any company which is for the time being under the Control of the Company
and which is a subsidiary within the meaning given by section 736 of the Companies Act
1985;
	 
	 	 	“Taxes Act” means the Income and Corporation Taxes Act 1988;
	 
	 	 	“Termination Date” means the date three months following the date on which a Termination
Notice has been distributed in accordance with clause 12.1;
	 
	 	 	“Termination Notice” means notice given pursuant to and in accordance with clause 12.1 to
terminate the Plan;
	 
	 	 	“Trustees” means the Trustees referred to in this Deed or such other person or persons who
is or are the trustee or trustees from time to time of the Plan;
	 
	 	 	“UK Listing Authority” means the UK Listing Authority within the meaning given to that
expression in the Listing Rules made by the Financial Services Authority pursuant to its
appointment as the relevant competent authority under the Official Listing of Securities
(Change of Competent Authority) Regulations 2000; and
	 
	 	 	“Year of Assessment” means a year beginning on any 6 April and ending on the following 5
April.
	 
	1.2	 	In this Deed references to any statutory provisions are to those provisions as amended,
extended or re-enacted from time to time and shall include any regulations made thereunder and,
unless the context otherwise requires, words in the singular include the plural (and vice versa)
and words importing any gender include all genders.
	 
	1.3	 	In this Deed and the Rules, references to clauses are to the provisions of this Deed and
references to Rules are to the provisions of the Rules.
	 
	2.	 	Trusts of the Plan 
	 
	 	 	Subject as hereinafter provided, the Trustees hereby declare that they shall hold
any Partnership Share Money, Shares once awarded and all other trust property deriving
therefrom UPON TRUST for the Participants and shall apply and deal with the same in
accordance with the provisions of the Plan.
	 
	3.	 	Company’s and Participating Companies’ Obligations

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	3.1	 	The Company hereby covenants with the Trustees to fulfil all obligations expressed to be
binding on the Company under this Deed and in particular to pay to the Trustees:

	 	(a)	 	such sums as may be required to enable the Trustees to acquire Free Shares and/or
Matching Shares; and
	 
	 	(b)	 	any additional expenses incurred in acquiring Partnership Shares where the Initial
Market Value of the Partnership Shares exceeds the Partnership Share Money paid by Eligible
Employees to acquire such Partnership Shares.

	3.2	 	Each Participating Company hereby binds and obliges itself to pay to the Trustees, such sums as
are described in clause 3.1(a) and (b) in respect of the acquisition of Free Shares, Matching
Shares or Partnership Shares by the Trustees on behalf of Eligible Employees employed by such
Participating Company together with any other amounts required to cover any costs, charges and
expenses incurred in such acquisition and any other expenses and charges incurred by the Trustees
in the establishment, operation and termination of the Plan PROVIDED THAT

	 	(a)	 	a Participating Company shall only contribute to the Trustees such sums as are required
in connection with the acquisition of Free Shares, Matching Shares or Partnership Shares by
the Trustees to be awarded to Eligible Employees who are for the time being employees of
that Participating Company or, where applicable, former employees of such Participating
Company; and
	 
	 	(b)	 	contribution of such sums to be made by each Participating Company to the Trustees to
fund any acquisition, of Free Shares, Matching Shares or Partnership Shares by the Trustees
shall be paid not later than the fifth Dealing Day immediately before the relevant
Appropriation Date or Acquisition Date or on such other date as the Trustees determine.

	4.	 	Investment 
	 
	4.1	 	The Trustees may in their absolute discretion invest any monies other than Partnership
Share Money from time to time held by them and not required immediately for the acquisition of
Shares in accordance with clauses 4.3(a)-(c) inclusive unless the Trustees in their absolute
discretion resolve otherwise in which case they shall have the power conferred by section 3 of the
Trustee Act 2000. Any income arising on any such investments shall be used for the purposes of
acquiring further Shares or to meet taxation or other liabilities or expenses incurred from time to
time in the operation and administration of the Plan.
	 
	4.2	 	The Trustees shall hold Partnership Share Money on behalf of an Eligible Employee until such
time as the Trustees use such money in the acquisition of Partnership Shares for such Eligible
Employee save that following the withdrawal by a Participant from his Partnership Share Agreement
or on termination of the Plan in accordance with clause 12, or otherwise in accordance with Rule 4
the Trustees shall pay any uninvested Partnership Share Money to the Participant as soon as
practicable.
	 
	4.3	 	The Trustees shall keep any monies required to be held by them pursuant to clause 4.2 in an
account (interest bearing or otherwise) with:

	 	(a)	 	a person falling within section 840A(1)(b) of the Taxes Act;
	 
	 	(b)	 	a building society; or
	 
	 	(c)	 	a firm falling under section 840A(1)(c) of the
Taxes Act,

	 	 	 and an “account” shall include a “deposit” for these
purposes.

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	4.4	 	The Trustees shall be under no duty to invest trust property.
	 
	4.5	 	The Trustees shall have power to borrow monies to acquire Shares for the purposes of the Plan
and to satisfy their obligations hereunder upon such terms as they shall think fit.
	 
	5.	 	Trustees’ Obligations 
	 
	5.1	 	The Trustees shall apply all monies received for the acquisition of Free Shares,
Partnership Shares or Matching Shares in acquiring such Shares and awarding them to Eligible
Employees pursuant to and in accordance with the Plan.
	 
	5.2	 	Shares transferred to the Trustees in accordance with paragraph 78 of Schedule 2 (Acquisition
by trustees of shares from employee share ownership trust), shall be awarded by the Trustees only
as Free or Matching Shares and in priority to other available Shares.
	 
	5.3	 	The Trustees shall, if the Board directs from time to time pursuant to Rule 6 that:

	 	(a)	 	all cash dividends received in respect of Plan Shares must be reinvested in acquiring
more Shares; or
	 
	 	(b)	 	cash dividends received in respect of Plan Shares of those Participants who so elect
must be so reinvested;

	 	 	apply cash dividends received in respect of a Participant’s Plan Shares in acquiring
Dividend Shares on behalf of such Participant in accordance with the Plan. If any amount
of a cash dividend is not reinvested in accordance with Rule 6.5, for the time it is
retained by the Trustees it shall be held by them so as to be separately identifiable for
the purpose of complying with Rule 6.5.
	 
	5.4	 	The Trustees shall:

	 	(a)	 	as soon as practicable after any Free or Matching Shares have been appropriated by the
Trustees to a Participant in accordance with the Rules, notify the Participant of the
Appropriation specifying the number and description of those Shares, the Appropriation
Date, their Initial Market Value and the Holding Period applicable to them;
	 
	 	(b)	 	as soon as practicable after any Partnership Shares have been acquired by the Trustees
on behalf of a Participant in accordance with the Rules, notify the Participant of the
acquisition specifying the number and description of those Shares, the amount of
Partnership Share Money applied by the Trustees in the acquisition and their Initial Market
Value;
	 
	 	(c)	 	as soon as practicable after any Dividend Shares have been acquired by the Trustees on
behalf of a Participant in accordance with the Rules, notify the Participant of the
acquisition specifying the number and description of those Shares, their Initial Market
Value, the Holding Period applicable to them and any amount of uninvested cash dividends
held by the Trustees on behalf of the Participant pursuant to Rule 6;
	 
	 	(d)	 	as soon as practicable after any foreign cash dividend is received in respect of Plan
Shares, notify the Participant of the amount of any foreign tax deducted from such dividend
before it was paid.

	5.5	 	Subject to clause 5.6, clause 5.7, clause 8.1(e), clause 12 and Rules 9 and 10 the Trustees
shall only dispose of a Participant’s Plan Shares and deal with any right conferred in respect of
any of his Plan Shares to be allotted other Shares securities or

-9-

 

	 	 	rights of any description pursuant to a direction given by notice by or on behalf of the
Participant (in such form as may be prescribed from time to time by the Trustees).
	 
	5.6	 	The Trustees shall not dispose of a Participant’s Free Shares, Matching Shares or Dividend
Shares during the Holding Period (whether by transfer to the Participant or otherwise) unless the
Participant has at that time ceased to be in employment with the Company or an Associated Company
PROVIDED THAT:

	 	(a)	 	the Trustees may dispose of a Participant’s Free Shares, Matching Shares or Dividend
Shares during the Holding Period:

	 	(i)	 	pursuant to a direction under clause 5.5 or clause 12 given by or on behalf of
a Participant;
	 
	 	(ii)	 	in accordance with clause 8.1(e); or
	 
	 	(iii)	 	in accordance with Rule 9 or Rule 10; and

	 	(b)	 	if a Participant ceases at any time to be in employment with the Company or an
Associated Company or dies while in such employment the Trustees may at their discretion
either:

	 	(i)	 	transfer his Plan Shares to him (or his personal representatives) or to another
person at his direction; or
	 
	 	(ii)	 	dispose of his Plan Shares and account (or hold themselves ready to account)
to him (or his personal representatives) or another person at his direction for the
net sale proceeds thereof within a reasonable time thereafter.

	5.7	 	In the event of a Reconstruction or Takeover and in accordance with Rule 10, the Trustees shall
dispose of any Plan Shares acquired on behalf of the Participant upon receipt by the Trustees of a
notice to this effect signed by the Participant (or his personal representatives) and subject to
the payment of any income tax under Chapter 6 shall account to the Participant for the net sale
proceeds thereof within a reasonable time thereafter.
	 
	5.8	 	Subject to their obligations under section 510 of Chapter 6 (Payments by trustees to employer
company on shares ceasing to be subject to plan), section 511 of Chapter 6 (PAYE deductions to be
made by trustees on shares ceasing to be subject to plan), section 512 of Chapter 6 (Disposal of
beneficial interest by participant), section 513 of Chapter 6 (Capital receipts: payments by
trustees to employer company), and section 514 of Chapter 6 (Capital receipts: PAYE deductions to
be made by trustees) any such direction as is referred to in clause 5.5 and the provisions of Rule
6, Rule 9, Rule 11 and Rule 12, the Trustees shall pay over to the Participant any money or money’s
worth received by them in respect of, or by reference to, any of his Plan Shares other than money’s
worth consisting of New Shares.
	 
	5.9	 	In the case of any acquisition of Free Shares for the purpose of an Appropriation, if it is not
possible to appropriate all the Free Shares without fractional entitlements arising in respect of
individual Participants, or, if for any other reason the Trustees hold Shares which are not to be
awarded, the Trustees may retain so many of the Shares as the Company shall direct or shall
otherwise sell any of the Shares. If the Trustees sell any of the Shares they shall apply the
proceeds to meet any expenses. If the proceeds are not required to meet such expenses, the
Trustees shall pay to the Participating Companies such proceeds in the same proportion as they were
provided or as the Trustees may otherwise determine.

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	5.10	 	If the Trustees become entitled in respect of any unawarded Shares to any rights to be
allotted, or to subscribe, further securities in the Company (other than an issue of capitalisation
shares of the same class as Shares then held by the Trustees pending any Appropriation, which
capitalisation shares shall be retained by the Trustees and shall form part of the Shares to be
appropriated among the Participants on the relevant Appropriation Date), the Trustees may at their
discretion take up those rights or sell them for the best consideration in money reasonably
obtainable at the time or sell sufficient of them nil paid to enable the Trustees to subscribe in
full for the balance of any unsold rights or allow them to lapse.
	 
	5.11	 	The Trustees shall hold any unawarded Shares or unutilised cash balances arising under clauses
5.9 or 5.10 and any income arising therefrom on trust to apply the same in or towards the future
subscription or purchase of Shares for the purposes of the Plan and/or their expenses of
administering the same, and shall notify the Company from time to time of the amounts and number of
Shares so held by them and their application.
	 
	5.12	 	The Trustees shall maintain such records as may be necessary to enable the Trustees to carry
out their obligations under paragraph 79 of Schedule 2 (Meeting by trustees of PAYE obligations)
and paragraph 80 of Schedule 2 (Other duties of trustees in relation to tax liabilities). Where a
Participant becomes liable to income tax under Chapter 2 of Part 2 of ITEPA (Tax on employment
income), Case V of Schedule D, or Schedule F by reason of the occurrence of any event, the Trustees
shall inform him of any facts relevant to determining that liability.
	 
	5.13	 	The Trustees shall, in accordance with paragraph 71A of Schedule 2 (Duty to monitor
participants in connected scheme) maintain records of Participants who have participated in one or
more approved share incentive plans established by the Company or a connected company within the
meaning of paragraph 18 of Schedule 2 (Requirement not to participate in other SIPs).
	 
	5.14	 	The Trustees shall make available to any of the Participating Companies and Participants on
reasonable notice and to the Board of Inland Revenue such information relevant to such persons in
connection with the Plan as such persons may reasonably require and shall at all times comply with
their obligations to make payments to any of the Participating Companies and to make the deductions
required under Chapter 6.
	 
	5.15	 	The Trustees shall take all reasonable steps to notify Participants of the principal terms of
any offer, compromise, arrangement or scheme affecting any of a Participant’s Plan Shares. In the
absence of any direction from a Participant concerning how the Trustees should act in respect of
his Plan Shares following any offer, compromise, arrangement or scheme the Trustees shall not take
any action in respect thereof.
	 
	5.16	 	Upon the termination of the Plan for whatever reason the Trustees shall deal with the Plan
Shares in accordance with clause 12.
	 
	6.	 	Application of the Plan to Subsidiaries 
	 
	6.1	 	Any Subsidiary may with the consent of the Company and the Trustees become a party to
this Deed and participate in the Plan by entering into a deed supplemental to this Deed agreeing to
be bound in all respects by this Deed for as long as such company is a Subsidiary.
	 
	6.2	 	A company shall cease to be a Participating Company if it ceases to be a Subsidiary or if the
Board serves a notice on the Trustees that such company shall cease to be a Participating Company
PROVIDED THAT:

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	 	(a)	 	paragraph 10 of Schedule 2 (No preferential treatment for directors and senior
employees) is not thereby breached; and
	 
	 	(b)	 	the rights of Participants employed by such company to Plan Shares appropriated to them
or acquired on their behalf while such Company was a Participating Company shall not be
affected.

	6.3	 	A company which is or has been a Participating Company shall provide the Trustees with all
information required from it for the purposes of the administration and termination of the Plan and
shall do so in such form as the Trustees shall reasonably require and the Trustees may in good
faith rely on such information without further enquiry.
	 
	7.	 	Voting Rights and Directions 
	 
	7.1	 	A Participant may direct the Trustees to exercise any voting rights attaching to such
Participant’s Plan Shares in accordance with such Participant’s wishes. The Trustees shall not be
entitled to vote on a show of hands in respect of Plan Shares unless all directions received from
Participants in respect of the particular resolution are identical. The Trustees shall not in any
circumstances be under an obligation to call for a poll. If there is a poll the Trustees shall
vote only in accordance with the directions of Participants. The Trustees shall not exercise
voting rights in respect of Plan Shares in the absence of any such directions. The Trustees may
not vote in respect of Shares which have not been awarded pursuant to the Plan.
	 
	7.2	 	The Trustees shall deal with any right conferred in respect of any of those Shares to be
allotted other shares, securities or rights of any description whether pursuant to paragraph 37 of
Schedule 2 (Holding period: power of participant to direct trustees to accept general offers etc.)
or otherwise only pursuant to a direction given by notice by or on behalf of the Participant (or
any person in whom the beneficial interest in that Participant’s Shares is for the time being
vested).
	 
	8.	 	Trustees’ Administration and Powers 
	 
	8.1	 	The Trustees may:

	 	(a)	 	at any time, and shall if so directed by the Company, revoke any delegation or
arrangement made under this clause or any other power and/or require any trust property
held by another person to be returned to the Trustees;
	 
	 	(b)	 	execute or authorise any of their directors, officers or employees on their behalf to
execute any deeds, documents, cheques or other instruments by the impression of any
signature on behalf of, or as witness of any sealing by, the Trustees of any writing,
printing, lithography, photocopying and other modes of representing or reproducing words in
a visible form;
	 
	 	(c)	 	make such arrangements as they consider appropriate to facilitate the acquisition of
Partnership Shares and/or Dividend Shares or the sale of Plan Shares for Participants who
wish to dispose of their holdings;
	 
	 	(d)	 	subject to and in accordance with the provisions of this Deed convene meetings and make
such regulations as they consider appropriate relating to the administration of the Plan;
	 
	 	(e)	 	where a PAYE obligation is imposed on the Trustees pursuant to Chapter 6 as a result of
a Participant’s Plan Shares ceasing to be subject to the Plan, (including pursuant to this
clause) and/or where an obligation is imposed on the Trustees to account for employee’s
National Insurance Contributions as a result of a

-12-

 

	 	 	 	Participant’s Plan Shares ceasing to be subject to the Plan, meet that obligation
by:

	 	(i)	 	disposing of any of the Participant’s Plan Shares; or
	 
	 	(ii)	 	the Participant paying to the Trustees a sum equal to the amount needed to
discharge the obligation, and

	 	 	 	the Trustees may dispose of a Participant’s Plan Shares under this paragraph (e)(i)
by acquiring some or all of such Shares for the purposes of the Plan;
	 
	 	(f)	 	arrange for the relevant Participating Company to account to the Inland Revenue or
other authority concerned for any amounts deducted from payments made pursuant to the Plan
in respect of income tax or any other deductions required in accordance with Chapter 6;
	 
	 	(g)	 	where there is no relevant Participating Company in respect of a Participant, account
to the Inland Revenue or other authority concerned for any amounts of income tax or other
deductions required to be made in accordance with Chapter 6.

	8.2	 	Any two Trustees or a body corporate acting as a Trustee may give a valid and effectual receipt
or discharge for the payment or transfer of any money or other property receivable by the Trustees.
	 
	8.3	 	In the case of a Participant who is a minor, the receipt of a parent, grandparent or guardian
shall provide a good discharge to the Trustees.
	 
	9.	 	Trustees’ Protection and Charges
	 
	9.1	 	No Trustee shall be liable for any loss arising out of or in connection with the Plan by
reason of:

	 	(a)	 	the negligence, or fraud of any agent employed by such Trustee, or by any of the
Trustees, even if the employment of such agent was not strictly necessary or expedient;
	 
	 	(b)	 	any mistake or omission made in good faith by such Trustee, or by any of the Trustees;
or
	 
	 	(c)	 	any other matter or thing, except fraud or dishonesty of such Trustee.

	 	 	And in particular (without prejudice to the generality of this clause), no Trustee shall be
bound to take any proceedings against a co-trustee or former trustee or his personal
representatives for any breach or alleged breach of trust committed or suffered by such
co-trustee or former trustee.
	 
	9.2	 	Neither the Trustees nor any of their officers or employees shall be liable to account to
Participants for any remuneration or other benefit received in connection with the Plan and no
Trustee or officer or employee of the Trustees shall be liable to account to other Participants for
any profit derived from the Award to him of Shares held under the Plan.
	 
	9.3	 	Any person acting as a Trustee in the course of any profession or business carried on by him
may charge and be paid such reasonable remuneration, charges or disbursements, whether in
connection with the Plan or otherwise, as shall from time to time be agreed between him and the
Board.
	 
	9.4	 	Any Trustee hereof being a corporate body shall be entitled to charge and be paid such proper
and reasonable charges and expenses as may from time to time be agreed

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	 	 	between such Trustee and the Company. If the Trustee is a trust corporation, it may,
unless otherwise agreed with the Company, act in accordance with its general terms and
conditions from time to time in force.
	 
	9.5	 	Any Trustee (and any director or officer of a body corporate or a trust corporation acting as a
Trustee) shall not on his own account be precluded from acquiring, holding or dealing with any
debentures, debenture stock, shares or securities whatsoever of the Company or any Subsidiary or
any other company in the shares of which the Company or any Subsidiary may be interested, or from
entering into any contract or other transaction with the Company or any Subsidiary or any other
company, or from being interested in such contract or transaction, and nor shall he be in any way
liable to account to the Company or any Subsidiary or any Participant for any profits made, fees,
commissions, shares of brokerage, discounts allowed or advantages obtained by him from or in
connection with such acquisition, holding, dealing, contract or transaction whether or not in
connection with his duties hereunder.
	 
	9.6	 	The Trustees shall be entitled in the absence of manifest error to rely without further enquiry
on information supplied to them by any Participating Company, former Participating Company, or any
Associated Company for the purposes of the Plan and shall also be entitled to rely in the absence
of manifest error on any direction, notice or document purporting to be given or executed by or
with the authority of any such company or by any Participant as having been so given or executed.
	 
	10.	 	Appointment, Removal, Retirement and Residence of Trustees 

	10.1	 (a)	 	No person may be a Trustee of the Plan unless such person is resident in the United
Kingdom for tax purposes; and
	 
	 	 (b)	 	the Board shall immediately remove in accordance with clause 10.3 any Trustee who
ceases to be so resident.

	10.2	 	The number of Trustees hereof shall be not less than two persons unless a body corporate is
appointed as sole Trustee and if at any time the number of the Trustees shall fall below such limit
the surviving or continuing Trustee shall have power to act only for the purpose of doing all
things necessary to concur in or secure the appointment of a new Trustee or Trustees.
	 
	10.3	 	Subject to clause 10.1(a) the Board may at any time by notice given to the Trustees:

	 	 (a)	 	appoint a new or additional Trustee, including a corporate Trustee (to the exclusion of
the Trustees statutory power of appointment); and
	 
	 	 (b)	 	remove a Trustee from office (but not so as to leave in office less than two Trustees,
unless the Trustee is a corporate Trustee), without assigning any reason therefor and such
removal shall (in the absence of any other date specified in the notice) take place
forthwith,

	 	 	PROVIDED THAT the existing Trustees shall thereupon execute such documents and do such
things as may be necessary to give proper effect to such appointment or removal.
	 
	10.4	 	The powers of appointment and removal shall be vested in the Trustees if the Company ceases to
exist otherwise than in consequence of a Reconstruction or Takeover when the successor company (or,
if more than one, such successor companies as the Company shall nominate) shall have such powers.
	 
	10.5	 	A Trustee may retire at any time by giving to the Company notice of his desire to retire and
such notice shall take effect at the expiry of three months (or such other period as may be agreed
with the Company) from the date of such notice. The retiring Trustee shall

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	 	 	not be obliged to give any reason for and shall not be responsible for any costs occasioned
by such retirement but shall execute all such documents and do all such things as may be
necessary to give proper effect to such retirement.
	 
	10.6	 	Forthwith upon his removal or retirement a Trustee shall transfer all trust property held by
him and deliver all documents in his possession relating to the Plan as the Company may direct and
hereby authorises the continuing Trustees, in the absence of such transfer, to effect such transfer
on his behalf.
	 
	10.7	 	A person shall not be disqualified from acting as a Trustee of the Plan by reason of the fact
that he is or has been an employee of a Participating Company or is or has been a Participant.
	 
	11.	 	Amendment of the Plan
	 
	11.1	 	Subject to clause 11.2, the Board shall with the prior written consent of the Trustees
at any time be entitled by resolution to amend all or any of the provisions of the Plan, PROVIDED
THAT at any time when the Plan is approved by the Inland Revenue under Schedule 2:

	 	(a)	 	if an amendment is made to a provision which is necessary to meet the requirements of
Schedule 2 no such amendment shall have effect until it has been approved by the Inland
Revenue;
	 
	 	(b)	 	nothing shall be done to the Plan which would prejudice the obtaining of such approval
or cause such approval to be withdrawn;
	 
	 	(c)	 	any amendment to this Deed excluding the Schedule for the purposes of this clause
11.1(c) shall only become effective if embodied in a deed supplemental to this Deed
executed by the Company and the Trustees; and
	 
	 	(d)	 	any amendment to any of the provisions of the Plan made pursuant to this clause 11
shall bind the Participating Companies (including where appropriate any former
Participating Company), the Trustees and Participants.

	11.2	 	Subject to clause 11.3, the definitions of “Eligible Employee”, “Relevant Amount”, this clause
11, Rule 3.1, the limits in Rule 3.2, Rule 3.3, Rule 4.4, Rule 5.3, Rule 6.2, Rule 7.1, Rule 7.2
and Rule 8.1 shall not be amended to the advantage of existing or future Participants without the
prior approval by ordinary resolution of the members of the Company in general meeting.
	 
	11.3	 	Clause 11.2 shall not apply to any amendment which:

	 	(a)	 	is necessary to secure and maintain Inland Revenue approval of the Plan under Schedule
2 or any other enactment, to ensure that such approval is not withdrawn pursuant to any
statutory modification of ITEPA or the Taxes Act, or to comply with or take account of the
provisions of any proposed or existing legislation, or to obtain or maintain favourable
taxation, exchange control or regulatory treatment of the Company, any Subsidiary or any
Participant; and
	 
	 	(b)	 	is a minor amendment which is necessary or desirable to benefit or facilitate the
administration of the Plan.

	11.4	 	No amendment shall be made to the Plan which:

	 	(a)	 	would cause the provisions of this Deed to conflict or be inconsistent with the Rules;

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	 	(b)	 	would materially and adversely affect the beneficial interests of Participants in
Shares already awarded to them under the Plan;
	 
	 	(c)	 	would cause the Plan to cease to be an employees’ share scheme within the meaning of
section 743 of the Companies Act 1985;
	 
	 	(d)	 	unless made with the written consent of the Trustees, would impose on the Trustees any
obligations more onerous than their obligations under this Deed prior to such amendment;
	 
	 	(e)	 	would unless made with the written consent of the Subsidiary involved impose on a
Subsidiary any obligations more onerous than its obligations under this Deed.

	12.	 	Termination of the Plan 
	 
	12.1	 	The Board may issue a notice (the Termination Notice) in such form as the Board may in
its absolute discretion determine on any day in its absolute discretion to terminate the Plan
PROVIDED THAT if no Termination Notice has been issued by the seventy-fourth anniversary of the
date of this Deed and the period of 74 years shall be the perpetuity period, the Board shall issue
a Termination Notice on the seventy-fourth anniversary of the date of this Deed. A copy of the
Termination Notice shall be provided without delay to:

	 	(a)	 	the Inland Revenue;
	 
	 	(b)	 	the Trustees;
	 
	 	(c)	 	each Participant;
	 
	 	(d)	 	each Eligible Employee who is party to a Partnership Share Agreement at the date of the
Termination Notice.

	12.2	 	The Trustees shall not award any Shares under the Plan following the date of the Termination
Notice.
	 
	12.3	 	The Trustees must remove all Plan Shares from the Plan, as soon as practicable after:

	 	(a)	 	the Termination Date; or
	 
	 	(b)	 	if later, the date on which the Plan Shares may be removed from the Plan without giving
rise to a charge to income tax under Chapter 6 for a Participant or such earlier date which
the Participant may agree in writing after receipt of the Termination Notice,

	 	 	in which case the Trustees may remove Plan Shares from the Plan following the issue of the
Termination Notice by:

	 	(c)	 	transferring Plan Shares to the relevant Participant or to another person at his
direction (or where the Participant has died to his personal representatives);
	 
	 	(d)	 	disposing of the Plan Shares and accounting (or holding themselves ready to account)
for the proceeds to the Participant or to another person at his direction.

	12.4	 	The Trustees shall as soon as practicable after the Termination Notice is issued pay to a
Participant any money held on his behalf by the Trustees.
	 
	12.5	 	The Trustees shall convert any assets which have not been appropriated to Participants into
cash on the Termination Date and shall distribute the same to the Participating Companies in
proportion to the aggregate amounts provided by each of them (if any) to the Trustees.

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	13.	 	Governing Law 
	 
	 	 	This Deed shall be governed by and construed in accordance with the law of England.

IN WITNESS whereof the parties have entered into this Deed on the day and year first above written.

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Schedule 
 

The
Rules 

	1.	 	Invitations to Participate in the Plan 
	 
	1.1	 	The Board may at any time following the Approval Date and from time to time in its
absolute discretion resolve that the Plan shall be operated or shall cease to be operated in
respect of any or all of Free Shares, Partnership Shares with or without Matching Shares or
Dividend Shares in accordance with the provisions of the Plan.
	 
	1.2	 	If the Board exercises its discretion in Rule 1.1 and resolves to operate the Plan:

	 	(a)	 	the Board shall invite every Eligible Employee to participate in the Plan on the same
terms in respect of any Award and every Eligible Employee who participates in the Plan
shall do so on the same terms; and
	 
	 	(b)	 	the Board shall issue an invitation in accordance with the Rules (in such form as the
Board shall determine from time to time) to:

	 	(i)	 	each Eligible Employee who is not a Participant; and
	 
	 	(ii)	 	if applicable, to each Eligible Employee who has since the Plan was operated,
revoked a notice previously served by him under Rule 1.3; and
	 
	 	(iii)	 	all employees who at the next Qualifying Date are expected to be Eligible
Employees,

	 	 	and an Eligible Employee may consent to the Appropriation of Free Shares or accept the
opportunity to acquire Partnership Shares and/or Matching Shares by returning duly
executed, a Contract of Participation or a Partnership Share Agreement by the date
specified in the letter of invitation. If the Trustees do not receive a Contract of
Participation or Partnership Share Agreement by the date specified in the invitation the
Eligible Employee shall be deemed to have declined to participate in the Plan at that time.
	 
	1.3	 	An individual may by notice given to the Company before an Appropriation Date or an Acquisition
Date direct that Free Shares or Partnership Shares with or without Matching Shares shall not be
appropriated to him or acquired on his behalf on that Appropriation Date or Acquisition Date or on
any subsequent Appropriation Date or Acquisition Date. A notice given by an individual under this
Rule may be revoked by that individual giving the Company a notice of revocation.
	 
	2.	 	Participation – Holding Period, Forfeiture, Retirement Age and Group Plans Treated as a Single Plan
	 
	2.1	 	The Board shall specify a Holding Period in respect of each Appropriation of Free Shares or
Matching Shares. Such Holding Period shall be specified in the Contract of Participation or the
Partnership Share Agreement PROVIDED THAT:

	 	(a)	 	once a Holding Period has been specified in relation to an Appropriation of Free Shares
or Matching Shares, it may not be increased in respect of that Appropriation;
	 
	 	(b)	 	the Board may specify different Holding Periods from time to time; and
	 
	 	(c)	 	the Holding Period must be the same for all Shares in the same Appropriation.

	2.2	 	Subject to clause 5.6, clause 8.1(e), clause 12 and Rule 10 a Participant shall during the
Holding Period:

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	 	(a)	 	permit his Free Shares, Matching Shares and/or Dividend Shares to be held by the
Trustees; and
	 
	 	(b)	 	not assign, charge or otherwise dispose of his beneficial interest in the Free,
Matching Shares and/or Dividend Shares.

	2.3	 	The Board may in its absolute discretion resolve that an Appropriation of Free Shares or
Matching Shares may be subject to provision for forfeiture. The Contract of Participation or
Partnership Share Agreement shall state the extent to which the Free Shares or Matching Shares
shall be forfeitable. Any such provision for forfeiture of Free Shares or Matching Shares must
comply with paragraph 32 of Schedule 2 (Permitted restrictions: provision for forfeiture).
	 
	2.4	 	If an Eligible Employee participates in an Award under the Plan in a Year of Assessment in
which he has already participated in an award of shares under one or more other approved share
incentive plans established by the Company or a connected company within the meaning of paragraph
18 of Schedule 2 (Requirement not to participate in other SIPs), then the limits specified in Rules
3.3(g), 4.4 and 6.2 apply as if the Plan and the other plan or plans were a single plan as required
by paragraph 18A of Schedule 2 (Participation in more than one connected SIP in a tax year).
	 
	2.5	 	The retirement age for the purposes of the Plan is 50.
	 
	3.	 	Free Shares 
	 
	3.1	 	If the Board in its absolute discretion resolves that the Plan shall be operated in
respect of Free Shares the Board shall determine the maximum amount which may be paid to the
Trustees for the acquisition of Shares on every occasion on which the Board decides to operate the
Plan in respect of Free Shares and shall notify the Participating Companies and the Trustees
accordingly PROVIDED THAT if the Plan is to be operated otherwise than on a monthly basis not more
than one Appropriation of Free Shares may be made under the Plan in any Year of Assessment.
	 
	3.2	 	If the Board resolves to make an Appropriation of Free Shares to Eligible Employees such
Appropriation may be made by reference to an Eligible Employee’s remuneration, length of service or
hours worked or by reference to performance allowances within the meaning of and in accordance with
paragraphs 38-42 of Schedule 2 (Performance allowances: general application) PROVIDED THAT if
performance allowances are used the Company must as soon as practicable notify each Eligible
Employee of the performance targets and measures to be used to determine the number of Free Shares
to be appropriated to him and the same performance allowance shall apply to all Eligible Employees
in relation to that Appropriation.
	 
	3.3	 	Subject to Rule 3.5 and any reduction or limit imposed by Rule 7, the number of Free Shares to
be appropriated by the Trustees to each Eligible Employee on any Appropriation Date for which funds
have been allocated in accordance with Rule 3.1 shall be determined by the Board in accordance with
any one or more of the following formulae:

	 	(a)	 	each Eligible Employee shall receive a fixed number of Free Shares or a number of
Shares with an Initial Market Value equal to a fixed sum;
	 
	 	(b)	 	each Eligible Employee shall receive Free Shares having an Initial Market Value equal
to such percentage of his remuneration as the Board shall determine;
	 
	 	(c)	 	each Eligible Employee shall receive a number of Free Shares depending on his length of
service with a Qualifying Company;

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	 	(d)	 	each Eligible Employee shall receive a number of Free Shares depending on the number of
hours worked;
	 
	 	(e)	 	if the Board decides that performance allowances are to be used each Eligible Employee
shall receive a number of Free Shares which is conditional on performance targets and
measures notified as soon as practicable to each Eligible Employee having been met; or
	 
	 	(f)	 	such other formula to be determined by the Board and approved by the Inland Revenue;

	 	 	PROVIDED THAT:

	 	(g)	 	the aggregate Initial Market Value of all Free Shares which may be appropriated to any
Participant in any Year of Assessment shall not exceed the Relevant Amount; and
	 
	 	(h)	 	where the number of Free Shares depends on more than one of the formulae in
sub-paragraphs (b), (c) and (d) above each factor must give rise to a separate entitlement
and the total entitlement is the sum of those separate entitlements.

	3.4	 	The Participating Companies shall pay to the Trustees such sums as may be required by the
Trustees to purchase Shares to be appropriated to Eligible Employees as Free Shares pursuant to
this Rule.
	 
	3.5	 	Where the Trustees appropriate Free Shares a proportion of which rank for any dividend or other
distribution or other rights attaching to Shares by reference to a record date preceding the
relevant Appropriation Date and a proportion of which do not, then the Shares to be appropriated to
each Eligible Employee shall as far as practicable be in the same proportions thereto.
	 
	3.6	 	The Free Shares to which each Eligible Employee is entitled as a result of the calculations
described in Rule 3.3 shall be appropriated to him on the Appropriation Date by the Trustees but
shall be registered in the name of the Trustees on his behalf.
	 
	3.7	 	As soon as practicable after any Free Shares have been appropriated by the Trustees to a
Participant in accordance with these Rules, the Trustees shall notify the Participant (in such form
as determined by the Trustees from time to time) of the Appropriation specifying the Appropriation
Date, the number and description of those Shares, their Initial Market Value and the Holding Period
applicable to those Shares.
	 
	4.	 	Partnership Shares 
	 
	4.1	 	The Board may from time to time in its absolute discretion invite Eligible Employees to
acquire Partnership Shares with or without an Accumulation Period. To participate in an Award of
Partnership Shares each Eligible Employee must first enter into a Partnership Share Agreement with
the Company and the Trustees to be given effect by deductions from the Eligible Employee’s Salary.
	 
	4.2	 	If the Board resolves to invite Eligible Employees to participate in an Award of Partnership
Shares with an Accumulation Period:

	 	(a)	 	the Accumulation Period must be the same for all Eligible Employees participating in
that Award; and
	 
	 	(b)	 	the Partnership Share Agreement must specify:

	 	(i)	 	the length of the Accumulation Period;

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	 	(ii)	 	when the Accumulation Period begins which shall not be later than the date on
which the first deduction of salary is made under the Partnership Share Agreement;
and
	 
	 	(iii)	 	when the Accumulation Period ends and whether or not the Accumulation Period
will end before such date on the occurrence of a specified event in which case the
Partnership Share Agreement may also provide that where an Accumulation Period
comes to an end on the occurrence of a specified event, the Partnership Share Money
deducted in that period must be paid over to the individual as soon as practicable
instead of being applied in acquiring Shares PROVIDED THAT such specified events
must be the same for all Eligible Employees participating in that Award.

	4.3	 	The Company may not enter into a Partnership Share Agreement with an Eligible Employee unless
such agreement contains a notice in the form prescribed in paragraph 48 of Schedule 2 (Notice of
possible effect of deductions on benefit entitlement).
	 
	4.4	 	The amount of Partnership Share Money which may be deducted from an Eligible Employee’s Salary
must not exceed the limit contained in paragraph 46 of Schedule 2 (Maximum amount of deductions)
from time to time and shall not be greater than £10 (or such other minimum amount specified in
paragraph 47 of Schedule 2 (Minimum amount of deductions) from time to time).
	 
	4.5	 	Partnership Share Money must be paid to the Trustees, once deducted by the Company or any
Participating Company, as soon as practicable.
	 
	4.6	 	Subject to Rule 4.11, Partnership Share Money shall be held by the Trustees until it is applied
in acquiring Partnership Shares on behalf of the relevant Eligible Employee pursuant to clause 4.3
of the Trust Deed and any interest arising on Partnership Share Money held by the Trustees in an
interest-bearing account shall be accounted for to the relevant Eligible Employee by the Trustees.
	 
	4.7	 	Partnership Share Money shall be applied by the Trustees in the acquisition of Partnership
Shares on behalf of the relevant Eligible Employee on the Acquisition Date.
	 
	4.8	 	The Company may specify a maximum number of Shares over which an Award of Partnership Shares
may be made on any one occasion. The Partnership Share Agreement shall require the Company to
notify relevant Eligible Employees of any such maximum before the deduction of Partnership Share
Money in respect of that Award if there is no Accumulation Period and before the beginning of the
Accumulation Period if there is an Accumulation Period.
	 
	4.9	 	If the Company receives applications for Partnership Shares in excess of the maximum determined
by the Board in accordance with Rule 4.8 the Board shall adjust individual applications downwards
either:

	 	(a)	 	on a pro-rata basis; or
	 
	 	(b)	 	on such other basis as the Board may determine and agree in advance with the Inland
Revenue.
	 
	 	(c)	 	PROVIDED THAT

	 	(i)	 	if possible, each applicant who so wishes should be able to participate at
least to the extent represented by the minimum monthly amount pursuant to Rule 4.4;
	 
	 	(ii)	 	if there are insufficient Shares available to allow full participation based
on the minimum monthly amount, then participation based on such minimum

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	 	 	 	monthly amount shall be afforded to those applicants who are selected at
random in a ballot conducted by the Board.

	4.10	 	The number of Partnership Shares awarded to each Eligible Employee shall be determined in
accordance with their Initial Market Value. As soon as practicable after any Partnership Shares
have been acquired by the Trustees on behalf of a Participant, the Trustees shall notify the
Participant (in such form as determined by the Trustees from time to time) of the acquisition
specifying the number and description of those Shares, the amount of Partnership Share Money
applied by the Trustees in the acquisition and their Initial Market Value.
	 
	4.11	 	Any surplus Partnership Share Money following the acquisition of Partnership Shares by the
Trustees shall be paid over to the Participant as soon as practicable or may with the agreement of
the Participant in the Partnership Share Agreement be carried forward and added to the amount of
the next deduction where there is no Accumulation Period or to the next Accumulation Period.
	 
	4.12	 	Subject to clause 8.1(e) Partnership Shares may be withdrawn from the Plan at any time.

	4.13	(a)	 	A Participant may at any time give notice to the Company to stop deductions pursuant to a
Partnership Share Agreement. A Participant may subsequently give notice to the Company to restart
deductions by giving notice to the Company (but not so as to make up missed payments). Where a
notice is received stopping deductions, deductions will be stopped no later than 30 days (or such
other period as may be specified from time to time in Schedule 2) following the date of receipt
unless a later date is specified in the notice. Where a notice to re-start deductions is received,
deductions will be restarted no later than the first deduction due following 30 days (or such other
period as may be specified from time to time in Schedule 2) from the date of receipt of the notice
unless a later date is specified in the notice.
	 
	 	(b)	 	The Company may at any time give notice to the Participant to stop deductions pursuant
to a Partnership Share Agreement to acquire Partnership Shares without an Accumulation
Period. The Company may subsequently give notice to the Participant to restart deductions
(but not so as to make up missed payments). Where a notice is given stopping deductions,
deductions will be stopped no later than 30 days (or such other period as may be specified
from time to time in Schedule 2) following the date the notice is given unless a later date
is specified in the notice. Where a notice to restart deductions is given, deductions will
be restarted no later than the first deduction due following 30 days (or such other period
as may be specified from time to time in Schedule 2) from the date the notice is given
unless a later date is specified in the notice.

	4.14	 	A Participant may withdraw from a Partnership Share Agreement at any time by notice to the
Company. Unless a later date is specified any such notice shall take effect 30 days from the date
of receipt.
	 
	4.15	 	If a Participant withdraws from a Partnership Share Agreement or if the Trustees receive a
Termination Notice from the Board or if approval of the Plan under Schedule 2 is withdrawn the
Trustees shall return all Partnership Share Money held by the Trustees to the relevant Eligible
Employee as soon as practicable.
	 
	5.	 	Matching Shares 
	 
	5.1	 	If the Board from time to time in its absolute discretion decides to offer Matching
Shares in conjunction with an invitation to acquire Partnership Shares in accordance with Rule 4,
the following provisions shall apply.

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	5.2	 	The Participating Companies shall pay to the Trustees such sums as may be required by the
Trustees to acquire Shares to be appropriated to Eligible Employees as Matching Shares pursuant to
this Rule.
	 
	5.3	 	The number of Matching Shares to be appropriated to each Eligible Employee on the occasion on
which Partnership Shares are acquired on behalf of each such Eligible Employee shall be calculated
by applying the ratio specified in the Partnership Share Agreement which shall be the same for all
Eligible Employees for that Award to the number of Partnership Shares to be acquired on that
occasion PROVIDED THAT the ratio shall not exceed two Matching Shares for each Partnership Share
(or such other ratio as may be specified from time to time in Schedule 2).
	 
	5.4	 	Matching Shares shall be appropriated by the Trustees on the same day as the Partnership Shares
to which they relate are awarded and on exactly the same basis to all Eligible Employees who
participate in the Award and Rule 3.5 shall apply mutatis mutandis.
	 
	5.5	 	As soon as practicable after any Matching Shares have been appropriated by the Trustees to a
Participant, the Trustees shall notify the Participant (in such form as determined by the Trustees
from time to time) of the Appropriation specifying the Appropriation Date, the number and
description of those Shares, their Initial Market Value and the Holding Period applicable to those
Shares.
	 
	6.	 	Dividend Shares 
	 
	6.1	 	The Board may from time to time, in its absolute discretion, direct that:

	 	(a)	 	all cash dividends received in respect of Plan Shares must be reinvested in acquiring
more Shares; or
	 
	 	(b)	 	cash dividends received in respect of Plan Shares of those Participants who so elect
must be reinvested by the Trustees in acquiring more Shares on behalf of those
Participants.

	6.2	 	If Rule 6.1(a) applies or a Participant makes an election under Rule 6.1(b), any cash dividend
received by the Trustees in respect of Plan Shares held on behalf of a Participant shall, subject
to the limits in paragraph 64 of Schedule 2 (Limit on amount reinvested) be applied by the Trustees
in acquiring more Shares on his behalf on the Acquisition Date and the number of Dividend Shares
acquired on his behalf shall be determined by the Trustees in accordance with their Initial Market
Value.
	 
	6.3	 	As soon as practicable after any Dividend Shares have been acquired on behalf of a Participant,
the Trustees shall notify the Participant (in such form as the Trustees shall determine from time
to time) of the acquisition specifying the number and description of those Shares, their Initial
Market Value, the Holding Period applicable to them and any amount of uninvested cash dividends
held by the Trustees on behalf of the Participant.
	 
	6.4	 	The Trustees shall reinvest dividends in a way that is fair and equal between Participants.
	 
	6.5	 	Any amount of a cash dividend which is not reinvested under Rule 6.2 because it is insufficient
to acquire a Share shall unless the Trustees determine otherwise be retained by the Trustees and
carried forward to be added to the amount of the next cash dividend to be reinvested PROVIDED THAT
any amount so retained shall be paid to a Participant as soon as practicable:

	 	(a)	 	if or to the extent that it is not reinvested within the period of three years
beginning with the date on which the cash dividend was paid; or

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	 	(b)	 	if within the said period of three years the Participant ceases employment with the
Company or any Associated Company; or
	 
	 	(c)	 	if a Termination Notice is issued; or
	 
	 	(d)	 	if the Trustees determine that such amount shall not be retained.

	6.6	 	If the Board does not make a direction under Rule 6.1(a) or a Participant does not make an
election under Rule 6.1(b) or if the amounts received by the Trustees exceed the limit in paragraph
64 of Schedule 2 (Limit on an amount reinvested), the Trustees shall pay the cash dividend or any
balance thereof shall be paid to the Participant as soon as practicable.
	 
	6.7	 	The Board may from time to time in its absolute discretion by notice given to all Eligible
Employees revoke a direction given under Rule 6.1 in which case any election made by a Participant
under Rule 6.1(b) would immediately cease to have effect.
	 
	7.	 	Limits on Participation 
	 
	7.1	 	The number of Free Shares and Matching Shares to be appropriated to an Eligible Employee
shall be:

	 	(a)	 	reduced in accordance with the provisions of Rule 7.3 if the total number of Free and
Matching Shares acquired by way of subscription by the Trustees and appropriated under the
Plan in that calendar year would otherwise exceed one per cent. of the Company’s ordinary
share capital then in issue; and/or
	 
	 	(b)	 	reduced in accordance with the provisions of Rule 7.3 if the total number of Free and
Matching Shares acquired by way of subscription by the Trustees and appropriated under the
Plan during the previous ten years when aggregated with any other Shares issued or capable
of being issued under Any Other Plan during such period would otherwise exceed ten per cent
of the Company’s issued ordinary share capital then in issue.

	 	 	PROVIDED THAT for the purpose of applying the limit set out in Rule 7.1(b) the number of
Shares which may be appropriated under the Plan shall be reduced by the number of notional
Shares determined by the Board in the manner set out in Rule 7.2.
	 
	7.2	 	For the purposes of the proviso to Rule 7.1:

	 	(a)	 	the Board shall compute the number of BGI Shares which have been acquired on exercise
of options granted under the BGI Plan in the relevant period or in respect of which options
under the BGI Plan are currently outstanding (less any BGI Shares issued on the exercise of
options granted under the BGI Plan but subsequently purchased by Barclays Bank PLC or any
other member of the Group); and
	 
	 	(b)	 	the Board shall subject to such adjustment or variation as the Board shall in its
absolute discretion consider appropriate convert such BGI Shares into a notional number of
Shares by the application in relation to each such acquisition of or grant of options over,
BGI Shares of the formula:

	 	 	 
	 	  A x B 	  =  D where:
	 	C	 

-24-

 

	 	A	 	is the number of BGI Shares acquired by or under option to each relevant
employee;
	 
	 	B	 	is the price per BGI Share at which such employee acquired or may acquire such
number of BGI Shares;
	 
	 	C	 	is if and for so long as the Shares are admitted to the Official List of the UK
Listing Authority the greater of the market value of a Share:

	 	(a)	 	on the date of grant such options; and
	 
	 	(b)	 	on the date of any determination by the Board for the purposes of this
Rule 7.2;

	 	 	 	calculated by the Board by reference to the middle-market quotations of a
Share as derived from the Daily Official List of the UK Listing Authority or if the
Shares are not so admitted on such other basis as the Board shall in its absolute
discretion determine;
	 
	 	D	 	is the number of notional Shares represented by the BGI Shares acquired in the
relevant period or in respect of which options are currently outstanding under the
BGI Plan for the purposes of the proviso to Rule 7.1.

	7.3	 	If it is not possible to appropriate to all Eligible Employees Free and Matching Shares to meet
the allocation basis described in Rule 3.3 because of any provision of this Rule 7, the number of
Free Shares and/or Matching Shares to be appropriated to each Eligible Employee shall be scaled
down on a pro rata basis or in such other manner determined by the Board which complies with the
requirements of paragraph 9 of Schedule 2 (Participation on same terms);
	 
	8.	 	Shares 
	 
	8.1	 	Shares subscribed for by the Trustees (whether or not appropriated pursuant to the Plan)
shall rank pari passu in all respects with Shares then in issue except they will not rank for any
rights attaching to the Shares by reference to a record date preceding the date of issue.
	 
	8.2	 	If and for so long as Shares are admitted to the Official List of the UK Listing Authority the
Company (or any successor company) shall apply to the UK Listing Authority for a listing and to the
London Stock Exchange for permission to trade for any Shares issued pursuant to the Plan as soon as
practicable after the allotment thereof.
	 
	9.	 	Rights Issues and Capitalisation Issues 
	 
	9.1	 	Whenever any rights to acquire New Shares are granted by a company to the holders of any
class of shares of which some are Plan Shares the Trustees shall notify each Participant of the
rights relating to his Plan Shares and he may give notice to the Trustees instructing them to do
one or more of the following:

	 	(a)	 	subject to the provision by him of any necessary funds, to take up or sell all or any
of the rights or allow them to lapse; and/ or
	 
	 	(b)	 	to sell rights nil paid to the extent necessary to enable the Trustees to subscribe in
full for the balance of any unsold rights

	 	 	which instructions may be particular or of general application and relate to Plan Shares
appropriated before and after the date of the relevant rights issue.

-25-

 

	9.2	 	The Trustees shall act upon any such notice received by them not less than five Dealing Days
before the expiry of the period allowed for the exercise of any such rights. If any Participant has
not prior to five Dealing Days before the expiry of the period allowed for the exercise of any such
rights, given notice to the Trustees instructing them to take action with regard thereto and
provided any funds necessary for the purpose, the Trustees shall allow such rights to lapse. The
Trustees shall deal with any Capital Receipt received in consequence of the non-exercise or sale of
any rights in accordance with Rule 14.1.
	 
	9.3	 	Any New Shares taken up by the Trustees on behalf of any Participant under Rule 9.1(b) shall,
subject to Rule 12, form part of the Participant’s Plan Shares and shall be deemed to have been
appropriated to, or acquired on behalf of the Participant, in the same way and at the same time as
the Participant’s Plan Shares to which they relate PROVIDED THAT this Rule 9.3 shall not apply in
relation to rights arising under a rights issue to subscribe shares in a company unless similar
rights are conferred in respect of all ordinary shares in the company.
	 
	9.4	 	Nothing in this Rule shall require the Trustees to act in any manner whereby they would be
involved in any liability unless indemnified to their satisfaction by the Participant against such
liability.
	 
	9.5	 	Where any New Shares are allotted by way of capitalisation to the Trustees in respect of any
Participant’s Plan Shares, such New Shares shall form part of that Participant’s Plan Shares and
shall be deemed to have been appropriated at the same time as the Participant’s Plan Shares in
respect of which they are allocated.
	 
	10.	 	Reconstruction and Takeover 
	 
	10.1	 	If there is a Reconstruction or Takeover affecting Plan Shares, the Participants shall
be notified of such event by the Trustees and any Participant may give notice to the Trustees
instructing them on the action to be taken (and, where appropriate, exercise any right to elect to
receive any particular form of consideration available thereunder) in respect of any of his Plan
Shares.
	 
	10.2	 	If there is a Reconstruction or Takeover affecting Plan Shares, the consideration received
thereunder shall (so far as it consists of cash or securities which cannot be held under the Plan)
be treated as the proceeds of a disposal under Rule 14.1 and so far as it consists of New Shares be
held by the Trustees as Plan Shares subject to the Rules mutatis mutandis as if the same were the
Shares in respect of which they are issued, or which they otherwise represent.
	 
	10.3	 	If notices to acquire compulsorily any Plan Shares are issued under sections 428 to 430F
inclusive of the Companies Act 1985 by another company for a consideration consisting of cash
and/or shares, the Participants concerned shall be entitled to receive notification thereof from
the Trustees as soon as practicable after receipt of such notice(s) by the Trustees and to give
notice of their instructions to the Trustees in relation to such consideration. The provisions of
Rules 10.1, 10.2 and 12 shall apply mutatis mutandis so far as relevant.
	 
	10.4	 	Where a transaction occurs during an Accumulation Period by virtue of which the Shares to be
acquired under the Partnership Share Agreement would result in a new holding of shares equating to
the original holding of shares for capital gains tax purposes, the Board shall with the consent of
the relevant Eligible Employee allow the Partnership Share Agreement to continue in effect as if it
were an agreement to purchase the shares comprising the new holding.
	 
	11.	 	Scrip Dividends

-26-

 

	11.1	 	Subject to Rule 6, this Rule 11 applies where the holders of any class of shares of
which some are Plan Shares are offered the right to elect to receive shares, credited as fully paid
in whole or in part, in lieu of a cash dividend. Within five Dealing Days or such other period as
the Trustees may decide before the closing of the offer, the Participant may:

	 	   (a)	 	instruct the Trustees to elect to receive shares; or
	 
	 	   (b)	 	instruct the Trustees to elect to receive cash,

	 	 	which instructions may be of particular or of general application and relate to Plan Shares
appropriated before and after the relevant date of the scrip dividend. If neither Rule
6.1(a) nor Rule 6.1(b) applies the Trustees shall notify Participants of their right to
elect for shares or cash.
	 
	11.2	 	Any shares taken up by the Trustees on behalf of any participant under this Rule shall not
form part of the Participant’s Plan Shares to which they relate and they shall belong to the
Participant, and the Trustees shall take all reasonable steps to procure that the Shares so
acquired are vested in the Participant without delay.
	 
	12.	 	Fractional Entitlements 
	 
	12.1	 	Where a company makes an offer or invitation conferring any rights upon its members
including the Trustees to acquire, against payment, additional securities in that company or where
that company allots any new securities by way of capitalisation, the Trustees shall allocate such
rights or securities amongst the Participants concerned on a proportionate basis and, if such
allocation shall give rise to a fraction of a security or a transferable unit thereof (in this Rule
a “unit”), shall round such allocation down to the next whole unit and the Trustees shall aggregate
the fractions not allocated and use their best endeavours to sell any rights or units which are not
allocated and distribute the net proceeds of sale (after deducting therefrom any expenses of sale
and any taxation which may be payable in respect thereof) proportionately among the Participants
whose allocation was rounded down, provided that any sum of less than £3 otherwise distributable to
a particular Participant may be retained by the Trustees.
	 
	12.2	 	In any circumstances in which the Trustees receive New Shares which form part of a
Participant’s Plan Shares the Trustees shall allocate the New Shares to the Participant by
reference to the relative times of Appropriation or acquisition of his Plan Shares to which they
relate and, if any such allocation should give rise to a fraction of a New Share, the Trustees
shall subject to Schedule 2 and to the Taxes Act, round such allocation up or down to the next
whole unit as they in their discretion think fit.
	 
	13.	 	Circulars and Notices 
	 
	 	 	The Company may provide or make available (or procure that the Company’s registrars
may provide or make available) to a Participant upon request copies of any notices,
circulars and other documents sent to shareholders of the Company.
	 
	14.	 	 Disposals and Payments 
	 
	14.1	 	Upon receipt of a sum of money being (or being part of) the proceeds of any disposal or
Capital Receipt in respect of any Plan Shares, the Trustees shall subject to compliance with the
provisions of Schedule 2, Chapter 6 and the Taxes Act account as soon as reasonably practicable to
the Participant for any balance remaining in their hands and relating to such Plan Shares by paying
the same to the Participating Company or Subsidiary (if any) by which he is employed, PROVIDED
THAT:

	 	   (a)	 	any sum of less than £3 distributable to a particular Participant may be retained by
the Trustees; and

-27-

 

	 	   (b)	 	if section 514 of Chapter 6 (Capital receipts: PAYE deductions to be made by trustees)
applies the Trustees shall in paying over to the Participant the Capital Receipt make a
PAYE deduction in respect of an amount equal to that on which income tax is payable as if
the Participant were a former employee of the Trustees.

	14.2	 	Any Participating Company or Subsidiary to which the Trustees pay or account for any part of
any such sum as is referred to in Rule 14.1 shall subject to compliance with the Taxes Act
forthwith account to the Participant for the balance remaining in its hands.
	 
	15.	 	Notices 
	 
	15.1	 	The Trustees shall not be bound to act upon any notice given by or on behalf of a
Participant or any person in whom the beneficial interest in his Plan Shares is for the time being
vested pursuant to the Plan unless such notice is received by the Trustees in writing signed by the
relevant person PROVIDED THAT:

	 	   (a)	 	“in writing” shall not include writing on or transmitted via the screen of a visual
display unit or other similar device except for facsimile; and
	 
	 	   (b)	 	the Trustees or the Board as appropriate may specify from time to time that a
notification may be given by such alternative means as may be permitted from time to time
pursuant to Schedule 2.

	15.2	 	Any notice which the Trustees are required or may desire to give to any Eligible Employee or
Participant pursuant to the Plan (or a Termination Notice given by the Board to any Eligible
Employee or Participant) shall be in writing PROVIDED THAT:

	 	   (a)	 	“in writing” shall not include writing on or transmitted via the screen of a visual
display unit or other similar device except for facsimile; and
	 
	 	   (b)	 	the Trustees or the Board as appropriate may specify from time to time that a
notification may be given by such alternative means as may be permitted from time to time
pursuant to Schedule 2.

	 	 	and notice is sufficiently given if delivered to the Eligible Employee or personally or
sent first class through the post pre-paid addressed to the Eligible Employee or
Participant at his address last known to the Trustees (including any address supplied by
the relevant Participating Company or any Subsidiary as being his address) or if sent
through the Group’s internal postal service. If so personally delivered notice shall be
deemed to have been given on delivery at the relevant address or if sent by post shall be
deemed to have been duly given on the day following the date the notice is posted or if
sent through the Group’s internal postal service shall be deemed to have been duly given
three working days after the date of posting. Any document so sent to an Eligible Employee
or a Participant shall be deemed to have been duly delivered notwithstanding that he is
dead (and whether or not the Trustees have notice of his death) except where his personal
representatives have established their title to the satisfaction of the Trustees and
supplied to the Trustees an address to which documents are to be sent.
	 
	16.	 	Information 
	 
	 	 	The Trustees shall maintain such records as may be necessary to comply with the
requirements of paragraph 80 of Schedule 2 (Other duties of trustees in relation to tax
liabilities), and shall at all times and from time to time give to each Participant such
information as shall be in their possession to enable him to determine and quantify any
liability he may have to income tax under Chapter 2 of Part 2 of ITEPA (Tax on Employment
Income).

-28-

 

	17.	 	Disputes 
	 
	 	 	The decision of the Board in any dispute or question affecting any Eligible Employee
or Participant under the Plan shall be final and conclusive.
	 
	18.	 	Terms of Employment 
	 
	18.1	 	Nothing in the Deed or the Plan shall in any way be construed as imposing upon a
Participating Company a contractual obligation as between that Participating Company and an
employee to contribute or to continue to contribute to the Plan.
	 
	18.2	 	In no circumstances shall any person who has ceased to be an employee of any member of the
Group by reason of dismissal or otherwise howsoever or who is under notice of termination of his
employment be entitled to claim as against any member of the Group or the Trustees any compensation
for or in respect of any consequential loss he may suffer by reason of the operation of the terms
of the Plan, the provisions of Schedule 2, ITEPA or the Taxes Act.

-29-

 

	 	 	 	 	 
	EXECUTED as a deed by
	 	 	)	 
	Barclays PLC
	 	 	)	 
	acting by:
	 	 	)	 
	

Director

	 	 	 	 
	Director/Secretary

	 	 	 	 
	EXECUTED as Deed by
	 	 	)	 
	Barclays Bank Trust Company Limited   
	 	 	)	 
	acting by:
	 	 	)	 
	

Director

	 	 	 	 
	Director/Secretary

	 	 	 	 

-30-

 

			
	DATED
	 	2004

Barclays PLC

- and -

Barclays Bank Trust Company Limited

 

 

 

 

 

 

Supplemental Trust Deed

relating to the

Barclays Group Share Incentive Plan

(Inland Revenue reference A1001/PC)

 

 

 

 

 

Lovells

C2LLW

 

 

This Supplemental Trust Deed is made on                                                            2004

Between:

	(1)	 	Barclays PLC whose registered office is at 54 Lombard Street London EC3P 3AH
(hereinafter called the “Company”); and
	 
	(2)	 	Barclays Bank Trust Company Limited whose registered office is at 54 Lombard Street
London EC3P 3AH (hereinafter called the “Trustees”)

Whereas:

	(A)	 	This Supplemental Trust Deed is supplemental to a trust deed (the “Trust Deed”) dated
10 January 2002 made between the Company and the Trustees whereby the Barclays Group Share
Incentive Plan was established for the benefit of certain persons who are or have been
employed by the Company and certain of its subsidiaries upon the terms and conditions
appearing therein.
	 
	(B)	 	The Trustees are the present trustees of the Plan.
	 
	(C)	 	The Company may by resolution of its board of directors amend the provisions of the
Plan provided that no amendment to the Trust Deed may be effective unless implemented by a
deed executed by the Company and the Trustees.
	 
	(D)	 	The Company wishes to amend the Trust Deed and the rules of the Plan contained in the
Schedule to the Trust Deed (the “Rules”) by amending the Trust Deed and Rules to reflect
in particular changes to the provisions relating to Inland Revenue approved Share
Incentive Plans introduced by the Income Tax (Earnings and Pensions) Act 2003 and the
Finance Act 2003.
	 
	(E)	 	The Board of Inland Revenue has approved this Supplemental Trust Deed in principle
pursuant to Schedule 2 to the Income Tax (Earnings and Pensions) Act 2003.

This Deed Witnesses:

	1.	 	Definitions
	 
	 	 	In this Supplemental Trust Deed unless the context otherwise requires words and
expressions defined in the Trust Deed shall have the same meaning herein.
	 
	2.	 	Amendment of the Plan
	 
	 	 	With effect on and from the date on which the Board of the Inland Revenue approves
this Supplemental Trust Deed, the Company and the Trustees hereby agree to amend the
provisions of the Trust Deed as set out in clause 3 so that the Trust Deed following such
amendment shall be in the form set out in the Schedule hereto.
	 
	3.	 	Amendment of the Trust Deed and Rules
	 
	3.1	 	Group plans treated as a single plan

	 	(a)	 	The definition of “Eligible Employee” shall be amended by deleting
clause (d) and replacing it with a new clause (d) as follows:

 

 

	 	“(d) 	 	is not eligible at the same time to participate in an award of shares in another
approved share incentive plan established by the Company or by a connected company as
provided in and within the meaning of paragraph 18 of Schedule 2 (Requirement not to
participate in other SIPs).”

	 	(b)	 	Clause 5: Trustees’ Obligations
	 
	 	 	 	Clause 5 of the Trust Deed shall be amended by the insertion of a new clause 5.13 as
follows:

	 	“5.13 	 	The Trustees shall, in accordance with paragraph 71A of Schedule 2 (Duty to
monitor participants in connected scheme) maintain records of Participants who have
participated in one or more approved share incentive plans established by the Company
or a connected company within the meaning of paragraph 18 of Schedule 2 (Requirement
not to participate in other SIPs).”;

	 	 	 	and by renumbering clauses 5.13 and 5.14 as 5.14 and 5.15 respectively.
	 
	 	(c)	 	Rule 2: Participation – Holding Period, Forfeiture, Retirement Age and Group Plans
treated as a Single Plan
	 
	 	 	 	Rule 2 of the Trust Deed shall be amended by the insertion of a new Rule 2.4 as
follows:

	 	“2.4 	 	If an Eligible Employee participates in an Award under the Plan in a Year of
Assessment in which he has already participated in an award of shares under one or more
other approved share incentive plans established by the Company or a connected company
within the meaning of paragraph 18 of Schedule 2 (Requirement not to participate in
other SIPs), then the limits specified in Rules 3.3(g), 4.4 and 6.2 apply as if the
Plan and the other plan or plans were a single plan as required by paragraph 18A of
Schedule 2 (Participation in more than one connected SIP in a tax year).”

	 	 	 	and by renumbering Rule 2.4 as Rule 2.5.

	3.2	 	New Annual Individual Limit
	 
	 	 	Rule 4.4 shall be amended by deleting the words “maximum monthly limits” and replacing them
with the word “limit”.
	 
	3.3	 	Eligibility and Qualifying Date

	 	(a)	 	The definition of “Eligible Employee” shall be amended by deleting
clause (a) and replacing it with a new clause (a) as follows:

	 	“(a) 	 	is an employee of a Participating Company on the Qualifying Date, or if the
Qualifying Date is not the Appropriation Date or the Acquisition Date is an employee
of a Participating Company on the Appropriation Date or Acquisition Date.”

	 	(b)	 	The definition of “Qualifying Date” shall be amended by inserting the words “or
subject to the definition of “Qualifying Period” such other date determined by the
Trustees” after clause (b)(ii) in the definition of “Qualifying Date”.

-2-

 

	3.4	 	Statutory References
	 
	 	 	The Trust Deed and Rules shall be amended by updating all statutory references to Schedule
8 to the Income and Corporation Taxes Act and other related statutory references and
terminology in the Trust Deed and Rules to take account of changes introduced by ITEPA and
the Finance Act 2003 and which shall include the insertion of a new definition of “Chapter
6” and “ITEPA” as follows:
	 
	 	 	“Chapter 6” “means Chapter 6 of Part 7 of ITEPA (Approved Share Incentive Plan)”; and
	 
	 	 	“ITEPA” means the Income Tax (Earnings and Pensions) Act 2003”;
	 
	 	 	and by deleting the definition of “Schedule 9”;
	 
	3.5	 	Miscellaneous

	 	(a)	 	Clause 3.2(b) of the Trust Deed shall be amended by inserting the
word “of” before the words “Free Shares” and deleting the word “or” after the
words “Free Shares”.
	 
	 	(b)	 	Clause 10.3(b) shall be amended by the insertion of the words “the
Trustee is”
	 
	 	 	 	after the word “unless”.
	 
	 	(c)	 	Clause 11.1 of the Trust Deed shall be amended by inserting the word
“to” after the word “resolution”.
	 
	 	(d)	 	Rule 1.2(b) of the Trust Deed shall be amended by deleting the word
“determined”.
	 
	 	(e)	 	Rule 3.3(b) of the Trust Deed shall be amended by the deletion of the
word “Salary” and its replacement with the word “remuneration”.
	 
	 	(f)	 	Rule 7.1 of the Trust Deed shall be amended by the insertion of the
word “and” after the words “Free Shares”.

In Witness whereof the parties have caused this Supplemental Trust Deed to be executed
the day and year first before written.

-3-

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