Document:

exh10-1_note.htm

     

    
      

      

    

     

     

     

     

     

     

    EXHIBIT 10.1

     

    DEMAND PROMISSORY NOTE IN FAVOR OF

    GORDON E. BECKSTEAD DATED SEPTEMBER 24,
2008

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    DEMAND
PROMISSORY NOTE

    

    $20,000.00

                                                                                                                                              Lakewood,
Colorado

    September
24, 2008

    

    For value
received, the undersigned, V2K INTERNATIONAL, INC., a Colorado corporation (the
“Borrower”),
hereby promises to pay on demand, to the order of Gordon E. Beckstead (the
“Lender”), at,
6635 East Sage Lane, Parker, CO 80138, or at any other place designated at any
time by the holder hereof, in lawful money of the United States of America and
in immediately available funds, the principal sum of TWENTY THOUSAND AND NO/100
DOLLARS ($20,000.00) together with interest on the principal amount hereunder,
computed on the basis of the actual number of days elapsed and a 365-day year,
from the date hereof until this Note is fully paid at the rate of TWELVE PERCENT
(12%) per annum.

    

    The
Borrower hereby agrees to pay all costs of collection, including attorneys’ fees
and legal expenses, in the event this Note is not paid when due, whether or not
legal proceedings are commenced.

    

    Presentment
or other demand for payment, notice of dishonor and protest are expressly
waived.

     

    
      
        	 	V2K INTERNATIONAL,
      INC., a Colorado corporation	 
	 	 	 	 
	
                 

              	
                By
      

              	/s/ Jerry
      A. Kukuchka	 
	 	 	 	 
	 	Its	 CFOexh10-2_note.htm

     

    
      

      

    

     

     

     

     

     

     

     

     

     

    EXHIBIT
10.2

     

    DEMAND
PROMISSORY NOTE IN FAVOR OF

    VICTOR J.
YOSHA DATED SEPTEMBER 29, 2008

     

     

     

     

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      DEMAND
PROMISSORY NOTE

      

      $20,000.00

                                                                                                                                                Lakewood,
Colorado

      September
29, 2008

      

      For value
received, the undersigned, V2K INTERNATIONAL, INC., a Colorado corporation (the
“Borrower”),
hereby promises to pay on demand, to the order of Victor J. Yosha (the “Lender”), at, 7276
Orion Street, Arvada, CO 80007, or at any other place designated at any time by
the holder hereof, in lawful money of the United States of America and in
immediately available funds, the principal sum of TWENTY THOUSAND AND NO/100
DOLLARS ($20,000.00) together with interest on the principal amount hereunder,
computed on the basis of the actual number of days elapsed and a 365-day year,
from the date hereof until this Note is fully paid at the rate of TWELVE PERCENT
(12%) per annum.

      

      The
Borrower hereby agrees to pay all costs of collection, including attorneys’ fees
and legal expenses, in the event this Note is not paid when due, whether or not
legal proceedings are commenced.

      

      Presentment
or other demand for payment, notice of dishonor and protest are expressly
waived.

       

    

    
      
        	 	V2K INTERNATIONAL,
      INC., a Colorado corporation	 
	 	 	 	 
	
                 

              	
                By
      

              	/s/ Jerry
      A. Kukuchka	 
	 	 	 	 
	 	Its	 CFOEX-4.2

Exhibit 4.2

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

A4/LLW/1164033.03

001BB/52998

 

 

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	 

Lovells

 

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;

 

- 2 -

	 	 	“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);

Lovells

 

- 3 -

	 	 	“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;

Lovells

 

- 4 -

	 	 	“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.

Lovells

 

- 5 -

	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;

Lovells

 

- 6 -

	 	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.

Lovells

 

- 7 -

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.

Lovells

 

- 8 -

	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:

Lovells

 

- 9 -

	 	(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:

Lovells

 

- 10 -

	 	(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.

Lovells

 

- 11 -

	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,
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); 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

Lovells

 

- 12 -

	 	(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

Lovells

 

- 13 -

	 	 	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.

Lovells

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]