Document:

EX-10.1

 Exhibit 10.1 

 
  

 
 THE FERGUSON
GROUP 
 DEFERRED BONUS PLAN 2019 
  

 

 
 Approved by
resolution of the Board 
 on 22 March 2019 and amended by resolution of the Board of the Company on 

27 January 2021 

 CONTENTS 
  

							
	CLAUSE	 	 	  	PAGE	 
			
	1.	 	DEFINITIONS	  	 	1	 
			
	2.	 	GRANT OF AWARDS	  	 	4	 
			
	3.	 	PROHIBITION ON ISSUE OF SHARES	  	 	5	 
			
	4.	 	VESTING	  	 	6	 
			
	5.	 	RIGHTS OF PARTICIPANT BEFORE VESTING	  	 	6	 
			
	6.	 	CESSATION OF EMPLOYMENT	  	 	6	 
			
	7.	 	TAKEOVER / GENERAL OFFER	  	 	6	 
			
	8.	 	SCHEME OF ARRANGEMENT	  	 	7	 
			
	9.	 	VOLUNTARY WINDING-UP	  	 	7	 
			
	10.	 	EXCHANGE OF AWARDS	  	 	7	 
			
	11.	 	CONSEQUENCES OF VESTING	  	 	8	 
			
	12.	 	DIVIDEND EQUIVALENTS	  	 	8	 
			
	13.	 	SOURCE OF SHARES	  	 	9	 
			
	14.	 	RIGHTS ISSUES, DEMERGERS AND VARIATIONS OF CAPITAL	  	 	9	 
			
	15.	 	TAX	  	 	9	 
			
	16.	 	EFFECT ON EMPLOYMENT RIGHTS	  	 	10	 
			
	17.	 	MALUS AND CLAWBACK	  	 	10	 
			
	18.	 	AMENDMENT	  	 	11	 
			
	19.	 	DATA PROTECTION	  	 	12	 
			
	20.	 	GENERAL	  	 	12	 
		
	 APPENDIX 1 US
	  	 	14	 

  

  
 -i- 

 THE FERGUSON PLC DEFERRED BONUS PLAN 2019 

The Ferguson Deferred Bonus Plan 2019 is intended to align the interests of executives with those of shareholders by providing a mechanism for Group Companies
to defer a proportion of such persons’ annual bonuses in the form of Shares for a period of time, under the terms of this Plan. 
  

	1.	 DEFINITIONS 

1.1 In this Plan references to the following words shall bear the following meanings: 

Adoption Date means 22 March 2019; 

Award means an award granted under Rule 2 in the form of a Conditional Award, an Option or a Phantom Award as the Committee may determine, which
is for the time being subsisting; 
 the Board means the board of directors of the Company; 

Committee means the Remuneration Committee of the Company or some other duly authorised committee of the Board; 

Company means the company incorporated in Jersey as Ferguson plc, with registered number 128484; 

Compulsory Participant means an Executive who as at the Test Date is an executive director of the Company who has not achieved the Shareholding
Requirement; 
 Conditional Award means an Award which takes the form of a contingent right to receive Shares or a conditional allocation of
Shares; 
 Control has the meaning given to that word by section 995 of the UK Income Tax Act 2007; 

Date of Grant means the date on which the Committee grants an Award; 

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

Deferral Period means the period(s) specified by the Committee pursuant to Rule 2.3(b); 

DI means a depositary interest representing an ordinary share in the capital of the Company; 

DRS statement means the direct registration system statement of account representing certificated ordinary shares listed and traded on the
relevant United States Stock Exchange held on the Company’s share register maintained in the United States; 
 DTC means the Depository
Trust Company, being the system used to settle trades of uncertificated ordinary shares listed and traded on the relevant United States Stock Exchange held on the Company’s share register maintained in the United States; 

  
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 Executive means any employee or executive director of any member of the Group; 

Financial Year means a financial year of the Company within the meaning of section 390 of the UK Companies Act 2006; 

Grant Letter means the notification to a Participant setting out the terms of an Award; 

Grant Period means the period of 42 days commencing on: 
  

	 	a)	 the Adoption Date; 

  

	 	b)	 the day immediately following the day on which the Company makes an announcement of its results for the last
preceding Financial Year, half year or other period; or 

  

	 	c)	 any day on which the Committee resolves that exceptional circumstances exist which justify the grant of Awards;

 Group means the Company and the Subsidiaries from time to time and the expressions member of the Group and
Group Company shall be construed accordingly; 
 Legal Representative means a deceased Participant’s duly appointed legal
personal representative, or equivalent representative in jurisdictions other than the UK, as evidenced by such representative to the satisfaction of the Committee; 

Listing Rules means the UK Listing Rules published by the Financial Conduct Authority (as amended from time to time); 

London Stock Exchange means London Stock Exchange plc or any successor body thereto; 

Market Abuse Regulation means Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse
(or any equivalent or successor legislation); 
 Market Value means, in relation to a Share on any day: 

 

	 	a)	 the closing middle-market quotation for a Share on that day (as derived from the Daily Official List of the
London Stock Exchange in the case of a DI priced in Pounds Sterling or from the equivalent such records of the relevant United States Stock Exchange in the case of an ordinary share in the capital of the Company priced in US Dollars); or

  

	 	b)	 the average of the closing middle-market quotations for a Share (as derived from the Daily Official List of the
London Stock Exchange in the case of a DI priced in Pounds Sterling or from the equivalent such records of the relevant United States Stock Exchange in the case of an ordinary share in the capital of the Company priced in US Dollars) during such
period as the Committee may determine but not exceeding 30 Dealing Days ending on that day and provided such Dealing Day(s) fall within a Grant Period; 

  
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 NASDAQ means Nasdaq, Inc. or any successor body thereto; 

New York Stock Exchange means New York Stock Exchange, Inc. or any successor body thereto; 

Notional Share means a share equal in value to a Share, but having no legal rights attributable to a Share; 

Option means an Award which takes the form of an option to acquire Shares at either nil cost or at Market Value, to be determined at the
discretion of the Committee; 
 Participant means an Executive who has been granted an Award (including, where the context permits his
personal representatives) which has not lapsed or been surrendered or forfeited; 
 Phantom Award means a conditional right to receive a cash
amount determined by reference to the Market Value of the Notional Shares subject to the Award on the Vesting Date; 
 Plan means the Ferguson
Group Deferred Bonus Plan 2019 as set out in these rules (as amended from time to time); 
 Restricted Period means any period in which
dealings in shares would be prohibited by law; 
 Scheme of Arrangement means the scheme of arrangement pursuant to Article 125 of the
Companies (Jersey) Law 1991, as amended, to introduce the Company as a new, Jersey-incorporated holding company to the Group; 
 Scheme of Arrangement
Effective Date means 10 May 2019 being the date on which the Scheme of Arrangement became effective in accordance with its terms; 

Shareholding Requirement means the shareholding ownership policy approved by the Committee pursuant to which an Executive is expected to own a
minimum value of Shares; 
 Shares means: 
  

	 	a)	 fully paid ordinary shares in the capital of the Company, whether held in certificated or uncertificated form,
via a DRS statement or via the DTC; 

  

	 	b)	 where appropriate the DIs representing such shares; and/or 

 

	 	c)	 shares, or DIs representing those shares or DIs following any reorganisation of the share capital of the
Company; 

 Subsidiary means any subsidiary of the Company within the meaning of section 1159 of and schedule 6 to the UK
Companies Act 2006 (or its equivalent under applicable law) over which the Company has Control; 
 Target Bonus means the amount of annual
bonus payable to an Executive in respect of “on target” performance; 

  
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 Tax Liability means any amount of tax or social security contributions for which a Participant
would or may be liable and for which a member of the Group or former member of the Group would or may be obliged to (or would or may suffer a disadvantage if it were not to) account to any relevant tax authority; 

Test Date means the date during the Grant Period on which an Executive’s compliance with the Shareholding Requirement shall be tested and
which shall be determined by the Committee prior to commencement of the Grant Period; 
 Trustee means the trustee or trustees of any employee
benefit trust established by the Company (or any Group Company); 
 United States Stock Exchange means the New York Stock Exchange, NASDAQ or
such other recognised stock exchange in the United States, on which the Shares are listed; and 
 Vesting Date means the date on which an
Award (or part thereof) Vests. 
 1.2 An Award Vests when the Participant becomes entitled to the transfer of Shares or the payment of cash
(as the case may be), under Rule 11. The terms Vested and Vesting shall have corresponding meanings. 
 1.3 References to any
statute or statutory instrument of UK Parliament, the legislative bodies of Jersey, the United States of America or the European Union (the EU) shall include any modification, amendment or
re-enactment thereof for the time being in force (and shall, in respect of any EU legislation, include any UK legislation enacted in replacement thereof following the UK’s departure from the EU). 

1.4 Words of the masculine gender shall include the feminine and vice versa and words in the singular shall include the plural and vice versa unless in either
case the context otherwise requires or is otherwise stated. 
  

	2.	 GRANT OF AWARDS 

Compulsory Participants 
 2.1 Subject to Rules 2 and
3, the Committee shall, during a Grant Period, grant an Award to any Compulsory Participant who at any time during the Financial Year immediately preceding the proposed Date of Grant (the Bonus Year) was a participant in any annual
bonus plan operated by the Company or any Group Company. 
 2.2 An Award shall be granted in the form of an Option, a Conditional Award or a Phantom Award
as the Committee may determine in its absolute discretion. 
 2.3 The Committee shall on or prior to the Date of Grant determine: 

 

	(a)	 the number of Shares or Notional Shares subject to the Award, which shall be equal to A/B where:

  

	A =	 the amount of the annual bonus in excess of the Target Bonus that the Committee determines would have
been paid to the Executive under the relevant annual bonus plan in respect of the relevant Bonus Year if the Executive did not participate in this Plan, such amount to be gross of income tax and social security contributions unless it is not
possible to defer the payment of such income tax and social security contributions to the Vesting Date in which case the Committee may specify such amount as it, acting fairly and reasonably, determines appropriate; and 

  
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	B =	 the Market Value of a Share on the Dealing Day immediately preceding the Date of Grant or, if that
Dealing Day would otherwise fall within a Restricted Period, the first Dealing Day following the cessation of the Restricted Period, 

and any fraction of a Share shall be rounded down to the nearest whole Share; 
  

	(b)	 the period for which the Award must be held before it Vests (the Deferral Period), which shall be
the period of three years from the last day of the relevant Bonus Year or such other period or periods as the Committee considers is appropriate; 

  

	(c)	 whether the Award will accrue dividend equivalents in respect of the Award and the basis on which it shall do
so pursuant to Rule 12; and 

  

	(d)	 any other restrictions or requirements that the Committee shall determine are appropriate.

 2.4 Awards shall be granted by the execution of a deed of grant by the Committee. A single deed of grant may be executed in favour of
any number of Executives. As soon as reasonably practicable after the Date of Grant, the Company will notify each Participant of the grant of his Award by means of a Grant Letter. 

2.5 The Company may require a Participant to sign and return such notification acknowledging their agreement to be bound by the terms of the Plan and may
determine that failure to do so within any period specified in that notification shall cause the Award to lapse and be treated as if it had never been granted. 

2.6 No payment shall be required for the grant of an Award. 
  

	Other	 Participants 

2.7 Subject to Rules 2 and 3, the Committee may, during a Grant Period, make an Award to any Executive who is not a Compulsory Participant but who was a
participant in any annual bonus plan operated by the Company or any Group Company in the Bonus Year. 
 2.8 Rules 2.2 to 6 shall apply to any Award granted
pursuant to Rule 2.7 save that the Committee may determine the number of Shares or Notional Shares subject to the Award in its absolute discretion and without regard to the fractions specified in Rule 2.3(a). 

 

	3.	 PROHIBITION ON ISSUE OF SHARES

 3.1 No Award may be granted to subscribe for unissued Shares or Shares transferred from treasury and the Vesting of an Award may not
be satisfied by the issue of new Shares or the transfer of Shares from treasury. 

  
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	4.	 VESTING 

4.1 Subject to any other provision in these Rules, Awards will Vest in full on the expiry of the Deferral Period. 

4.2 Notwithstanding any other provision in these Rules, if dealing in Shares by the Company is precluded by law, the Listing Rules, the Market Abuse
Regulation and any relevant share dealing code of the Company, the City Code on Takeovers and Mergers and any other UK or overseas regulation or enactment on the date on which the Deferral Period expires, an Award shall not Vest and an Option may
not be exercised until the date on which any such restriction is lifted. 
  

	5.	 RIGHTS OF PARTICIPANT BEFORE
VESTING 

 5.1 An Award shall be personal to a Participant and shall not (except to the extent necessary to enable a
Legal Representative to realise the Award following the death of a Participant) be capable of being transferred, changed or otherwise alienated and shall lapse immediately if the Participant purports to transfer, charge or otherwise alienate the
Award or if he is declared bankrupt. 
 5.2 A Participant will have no rights in respect of any Shares subject to an Award until the Shares are transferred
to him pursuant to Rule 11. 
  

	6.	 CESSATION OF EMPLOYMENT 

6.1 If, before an Award has Vested, a Participant ceases to be an employee of a member of the Group by reason of misconduct or after a Participant has ceased
to be an employee of a member of the Group the Company becomes aware of facts or circumstances that would have entitled it to dismiss the Participant for misconduct, then the Award shall lapse on the date of such cessation or the date the Company
becomes so aware. 
 6.2 If, before an Award has Vested, a Participant ceases to be an employee of a member of the Group for any reason other than one
mentioned in Rule 6.1, then the Participant’s Award shall continue subject to the rules of the Plan and will vest subject to and in accordance with Rule 4, save that in the event of a Participant’s death or other circumstances which the
Committee considers sufficiently exceptional the Committee may, in its absolute discretion, determine that the Award shall instead Vest at the date of death or cessation of employment (as applicable). 

 

	7.	 TAKEOVER / GENERAL OFFER 

7.1 Save as provided in Rule 7.3, if any person (either alone or together with any person acting in concert with him) obtains Control of the Company as a
result of making: 
  

	(a)	 a general offer to acquire the whole of the issued ordinary share capital of the Company which is made on a
condition such that if it is satisfied, the person making the offer will have Control of the Company; or 

  

	(b)	 a general offer to acquire all of the Shares, all Awards shall Vest. 

  
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 7.2 Save as provided in Rule 7.3, if any person becomes bound or entitled to give notice to acquire Shares
under Part 18 of the Companies (Jersey) Law 1991 or an equivalent under applicable law; all Awards shall Vest on the date on which such person becomes so bound or entitled. 

7.3 The Committee may, acting fairly and reasonably and having regard to the circumstances of the change of Control or compulsory acquisition, determine, at
any time before Awards Vest, that the Participant may agree to exchange any Award or that Awards will not Vest under Rule 7.1 or 7.2 (as appropriate) but shall be automatically exchanged, in either case, under Rule 10 below. 

 

	8.	 SCHEME OF ARRANGEMENT 

8.1 Save as provided in Rules 8.2 and 8.3, if any person proposes to obtain Control of the Company in pursuance of a compromise or arrangement sanctioned by
the Court under Article 125 of the Companies (Jersey) Law 1991 or its equivalent under applicable law, an Award shall Vest on the scheme of arrangement being sanctioned by the court. 

8.2 The Committee, may, acting fairly and reasonably and having regard to the circumstances of the scheme of arrangement, determine, at any time before Awards
Vest, that the Participant may agree to exchange any Award or Awards will not Vest under Rule 8.1 but shall be automatically exchanged, in either case, under Rule 10 below. 

8.3 If the Committee, in its absolute discretion, considers that the purpose and effect of the scheme of arrangement is to create a new holding company for
the Company and the holding company has substantially the same shareholders and proportionate shareholdings as those of the Company immediately before the scheme of arrangement, Awards will not Vest under Rule 8.1 and shall be automatically
exchanged under Rule 10 below. 
  

	9.	 VOLUNTARY WINDING-UP

 9.1 If notice is duly given of a resolution for a voluntary winding-up of the Company then
the Committee, acting fairly, reasonably and objectively, may in its absolute discretion allow some or all Awards to Vest. 
  

	10.	 EXCHANGE OF AWARDS 

10.1 Where Awards are to be exchanged under this Rule, any Award (the Old Right) will be surrendered in consideration of the grant to the
Participant of a new award (the New Right) which, in the opinion of the Committee, is equivalent to the Old Right but relates to shares in a different company. The provisions of the Plan shall be construed in relation to the New Right
as if: 
  

	(a)	 the New Right were an Award granted under the Plan at the same time as the Old Right; 

 

	(b)	 references to the Company and the Group were references to the company whose shares are subject to the New
Right and its group; 

  
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	(c)	 references to Shares were references to shares in the new grantor. 

 

	11.	 CONSEQUENCES OF VESTING 

11.1 Subject to Rule 4.2 and 15, the Committee shall, as soon as reasonably practicable following Vesting of an Award, procure that: 

 

	(a)	 a Conditional Award shall be satisfied by the transfer to the Participant or to such person as the Participant
may direct such number of Shares as are the subject of the Conditional Award; 

  

	(b)	 a Phantom Award shall be satisfied by the payment of a cash sum to the Participant equal to the Market Value of
such number of Notional Shares as are the subject of the Phantom Award; and 

  

	(c)	 an Option shall be treated as automatically exercised in respect of such number of Shares as are the subject of
the Option. 

 11.2 Shares transferred pursuant to the Plan will rank pari passu in all respects with the Shares then in issue
except for any rights attaching to Shares by reference to a record date before the date of such transfer. 
 11.3 Any transfer of Shares under the Plan
shall be subject to such consent of any of the authorities wherever situated as may from time to time be required and the Participant shall be required, so far as he is able, to procure compliance with the requirements of, or to obtain or obviate
the necessity for, such consents. 
 11.4 The Participant shall have no rights in respect of any Shares which are the subject of an Award until such Shares
are transferred to him. The Participant shall be entitled to all rights in respect of Shares transferred to him with effect from the date of transfer (save for rights in respect of which the record date was prior to that date). 

 

	12.	 DIVIDEND EQUIVALENTS 

12.1 Participants shall, if the Committee so determines at the Date of Grant, be entitled either: 

 

	(a)	 to be paid on Vesting of any Award a cash amount equal to the aggregate amount of the dividends that the
Participant would have accrued had the Participant held the number of Shares Vesting under the Award during the period commencing on the Date of Grant and ending on the date on which the Award Vests; or 

 

	(b)	 to receive on Vesting of any Award, in addition to the Shares subject to that Award, such number of further
Shares as could have been acquired, either at the time each dividend is paid or when the Award Vests (as the Committee may determine), with the amount of each cash dividend payable on the Shares Vesting under the Award for which the record date
falls during the period commencing on the Date of Grant and ending on the date on which the Award Vests. 

  
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 12.2 The Committee shall determine at the Date of Grant whether the amount of the cash dividend shall be the
amount net of any associated tax credit or the gross amount. This Rule 12.2 shall not apply in respect of any super dividend, dividend in specie or other distribution paid by the Company (each being a Distribution) which would
otherwise materially affect the value of an Award and for which an Award is adjusted pursuant to Rule 14. For the purpose of this rule 12.2 and rule 14, a Distribution shall not materially affect the value of an Award or attract dividend equivalents
if the Company undertakes a share consolidation in conjunction with the Distribution that has the effect that the Market Value of a Share before and after the Distribution is substantially equivalent. 

12.3 For the purpose of this Rule 12, a Notional Share shall be treated as carrying a right to dividends as if it was a Share. 

 

	13.	 SOURCE OF SHARES 

The Trustee may acquire Shares in the market in order to satisfy Awards and for this purpose any Group Company and the Trustee may enter into an agreement or
agreements governing the funding of the Trust by a Group Company. 
  

	14.	 RIGHTS ISSUES, DEMERGERS AND
VARIATIONS OF CAPITAL 

 14.1 If there is a rights issue, super dividend, demerger,
dividend in specie or any capitalisation issue or sub-division or consolidation of or other variation in the share capital in respect of Shares or the Company, the Committee may adjust the number of Shares
subject to an Award in such manner as it, in its absolute discretion, thinks fit. 
 14.2 If a demerger or super dividend, dividend in specie or other
distribution paid by the Company or any capitalisation issue or sub-division or consolidation of or other variation in the share capital in respect of Shares or the Company which, in the opinion of the
Committee, would materially affect the value of an Award, the Committee may, in its absolute discretion, permit Awards to Vest as at the date of such event. 
  

	15.	 TAX 

15.1 Any liability of a Participant to taxation or social security contributions in respect of an Award shall be for the account of the relevant Participant
and the transfer of any Shares subject to a Participant’s Award having discharged the Tax Liability which arises on Vesting or exercise to the satisfaction of the Company, or otherwise having complied with any arrangements specified by the
Company to secure that such Tax Liability is satisfied including irrevocably authorising the Company to sell or procure the sale of sufficient Vested Shares on or following the Vesting Date on his behalf to ensure that any relevant member of the
Group receives the amount required to discharge the Tax Liability which arises as a result of the Vesting or exercise of his Award and by participating in the Plan a Participant is deemed to have given such authorisation. 

15.2 The Committee may require the Participant, as a condition to the grant or Vesting of any Award or the transfer of any Shares, to enter into an election
under Chapter 2 of Part 7 of the Income Tax (Earnings & Pensions) Act 2003 in respect of any Shares to which he is or may become entitled under the Plan. 

  
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	16.	 EFFECT ON EMPLOYMENT RIGHTS

 16.1 Nothing in these Rules, the operation of the Plan or in a Participant’s or Executive’s contract of employment shall
be construed as giving to any Participant or Executive a right to be considered for participation in the Plan to receive the grant of any Award. 
 16.2
Neither an Award nor the Shares nor the Notional Shares nor cash the subject of an Award shall be pensionable for any purpose. 
 16.3 The rights and
obligations of any Participant under the terms of his office or employment shall not be affected by his participation in the Plan. Each Participant shall be deemed to waive all and any rights to compensation or damages in consequence of the
termination of his office or employment for any reason whatsoever (whether such cessation is lawful or unlawful) insofar as those rights arise or may arise from his ceasing to have rights under the Plan as a result of such termination or from the
loss or diminution in value of such rights or entitlements. If necessary, the Participant’s terms of employment shall be deemed to be varied accordingly. 
  

	17.	 MALUS AND CLAWBACK 

17.1 Notwithstanding any other rule of the Plan, if one or more of the circumstances set out in Rule 17.2 occur, the Committee may: (a) at any time, where
the circumstances fall within Rule 17.2(d) below; or (b) prior to the second anniversary of the Vesting Date in all other circumstances, determine (acting fairly and reasonably having taken into account the scale of loss or damage to the
Company or the extent of the risk taken by the Company) to take one or more of the following actions in relation to or any one or more Participants: 
  

	(a)	 to reduce (including to nil) the number of Shares or Notional Shares in respect of which any future Award is
granted to a Participant; 

  

	(b)	 to reduce (including to nil) the number of Shares or Notional Shares under an unvested Award held by a
Participant by such number as the Committee considers appropriate in the circumstances; and 

  

	(c)	 in relation to a Vested Award, to require a Participant to pay to the Company or such other person as the
Company may direct within 30 days of a written demand from the Company such number of Shares or such monetary amount with a value to be determined in the Committee’s absolute discretion provided such value on the date of demand is no greater
than the value of the Shares or Notional Shares under Award at the Vesting Date, less any amount paid by or in respect of the Participant in respect of a Tax Liability incurred as a result of the Vesting of the relevant Award (except to the extent
the Participant is able to recover amounts paid in respect of such Tax Liability). 

  
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 17.2 The circumstances in which the Committee may consider that it is appropriate to exercise its discretion
under Rule 17.1 are the following: 
  

	(a)	 a material financial misstatement of the Company’s audited financial accounts (other than as a result of a
change in accounting practice); 

  

	(b)	 conduct by a Participant which results in or is reasonably likely to result in significant reputational damage
to the Company; 

  

	(c)	 the negligence or gross misconduct of a Participant; or 

 

	(d)	 fraud effected by or with the knowledge of a Participant. 

 

	17.3	 If the Committee decides to exercise its discretion under this Rule 17, it shall confirm this in writing to
each affected Participant. 

  

	17.4	 For the purposes of these rules, if the Committee decides to exercise its discretion under Rule 17.1(b) before
an Award Vests: 

  

	(a)	 the Award shall be deemed to have been granted over the reduced number of Shares; and 

 

	(b)	 any subsequent Vesting of the Award shall be determined by reference to this reduced number of Shares,

 save that if the number of Shares is reduced to nil, the Award shall be treated as if it had never been granted and such Participant
(including a Participant who has left employment before the Vesting Date) shall have no rights to any cash amount, Shares, Notional Shares or Dividend Equivalents. 
  

	18.	 AMENDMENT 

18.1 The Committee may make such amendments to the Rules as it considers necessary or desirable from time to time. However, no amendment will be made under
this Rule that would adversely and materially affect the existing rights of a Participant unless such amendment is made with his written consent or with the written consent of a majority of the Participants affected by the amendments. 

18.2 Notwithstanding Rule 18.1, the Committee may make minor amendments to the Rules: 
  

	(a)	 to benefit the administration of the Plan, to take account of a change in legislation or to obtain or maintain
favourable tax, exchange control or regulatory treatment for Participants or for any member of the Group; and 

  

	(b)	 to take account of local tax, exchange control or securities law in order to operate this Plan in any
jurisdictions in which Executives are situated. The Committee may implement such amendments in the form of schedules to this Plan applicable to the specified jurisdiction. 

  
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	19.	 DATA PROTECTION 

19.1 By accepting the grant of an Award, a Participant acknowledges that the Company or any member of the Group may hold, process and transfer personal data
relating to them to other members of the Group or to any third parties engaged by them (whether within or outside of the European Economic Area (EEA) and that personal data may also be processed outside the EEA by the Company or any member of the
Group or by one or more held or of its or their service providers) for any and all purposes related to the operation and administration of the Plan and/or in order to meet any legal obligation, in each case in accordance with the Company’s
Share Plan Data Protection Protocol and applicable law. 
  

	20.	 GENERAL 

20.1 Any member of the Group may provide money to the Trustee or any other person to enable them or him to acquire Shares to be held for the purposes of the
Plan, or enter into any guarantee or indemnity for those purposes, to the extent not prohibited by applicable law. 
 20.2 The existence of any Award shall
not affect in any way the right or power of the Company or its shareholders to make or authorise any or all adjustments, recapitalisations, reorganisations or other changes in the Company’s capital structure, or any merger or consolidation of
the Company, or any issue of shares, bonds, debentures, preferred or prior preference stocks ahead of or convertible into, or otherwise affecting the Shares or the rights thereof, or the dissolution or liquidation of the Company or any sale or
transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 
 20.3 Any
notice or other document required to be given under or in connection with the Plan may be delivered to a Participant or sent by post to him at his home address according to the records of his employing company or such other address as may appear to
the Company to be appropriate. Notices sent by post shall be deemed to have been given on the day following the date of posting. Any notice or other document required to be given to the Company under or in connection with the Plan may be delivered
or sent by post to it at its corporate services office at 11020 Eskdale Road, Winnersh, Wokingham RG41 5TS (or such other place or places as the Committee may from time to time determine and notify to Participants). 

20.4 The Company, or where the Committee so directs any Subsidiary, shall pay the appropriate stamp duty on behalf of the Participants in respect of any
transfer of Shares on the Vesting or exercise of the Awards. 
 20.5 Benefits under this Plan shall not be pensionable. 

20.6 These rules and any contractual and non-contractual obligations arising from them shall be governed by, and
construed in accordance with, the laws of England. Neither the Plan nor any Grant Letter shall be construed or interpreted with any presumption against the Company by reason of the Company causing the Plan or Grant Letter to be drafted. 

  
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 20.7 Unless specifically stated otherwise, each Participant, the Company and any other member of the Group
submits to the exclusive jurisdiction of the English courts in relation to all disputes arising out of or in connection with the Plan. By accepting the grant of an Award and not renouncing it, Participants are deemed to have agreed to submit to such
jurisdiction. 

  
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 APPENDIX 1 

US 
  

	1.	 GENERAL 

1.1 This Appendix 1 shall apply to all US Taxpayers and the rules of the Plan and the terms of Awards held by US Taxpayers shall at all times be construed and
interpreted in a manner consistent with this Appendix 1. 
 In the event that a Participant becomes a US Taxpayer subsequent to the Date of Grant of an
Award under the Plan, then, pursuant to Rule 18 of the Plan, such Award shall immediately be deemed to be amended in a manner consistent with this Appendix 1. 

1.2 In this Appendix 1, the following expressions shall have the following meanings respectively: 

Code means the US Internal Revenue Code of 1986, as it may be amended from time to time, and all regulations, interpretations and administrative
guidance issued thereunder; 
 US means the United States of America; 

US Tax means federal income taxation by the US; 

US Taxpayer means a Participant who is subject to US Tax at the Date of Grant, is expected to become subject to US Tax following the Date of
Grant or does become subject to US Tax following the Date of Grant but prior to the date upon which any part of an Award is paid. 
 1.3 References to a
Rule shall be to the rules of the Plan. 
  

	2.	 PROVISIONS APPLICABLE TO US TAXPAYERS

 2.1 A new Rule 2.9 shall be added to Rule 2 of the Plan to read in full as follows: 

“2.9 For the avoidance of doubt and notwithstanding any other provisions of this Rule 2 to the contrary, (a) participation in, and
the grant of Awards under, the Plan to any US Taxpayer shall be at the sole discretion of the Committee and (b) no US Taxpayer shall have any unilateral right to elect to defer any compensation under the Plan.” 

2.2 A new Rule 11.5 shall be added to Rule 11 of the Plan to read in full as follows: 

“11.5 Notwithstanding any other provision of the Plan or individual Award agreement to the contrary, the transfer of Shares (in the case
of a Conditional Award), payment in cash (in the case of a Phantom Award) or automatic exercise (in the case of an Option) under an Award, as well as the payment of any dividend equivalent amounts, shall occur on the earliest of the following
events: 

  
 Page 14 

	(a)	 the occurrence of an event falling within Rule 7, 8 and 9 provided that such event also constitutes a
“change in control event”, within the meaning of Section 409A of the Code; 

  

	(b)	 the last day of the Deferral Period applicable to the Award; and 

 

	(c)	 the US Taxpayer’s death; 

provided, however, that, with respect to any Award payable in, or exercisable for, Shares, in the event that any trading, dealing or other securities
law restrictions under the Listing Rules, the Market Abuse Regulation and any relevant share dealing code of the Company, the City Code on Takeovers and Mergers and any other UK or overseas regulation or enactment would prevent the issuance or
transfer of Shares on the applicable date specified above, such issuance or transfer may be delayed and made upon the lapse of all such restrictions, but in no case later than the last day of the US Taxpayer’s taxable year which includes the
date specified above, or, if later, the 15th day of the third calendar month following the date specified above, so long as the US Taxpayer is not permitted, directly or indirectly, to designate the taxable year of the issuance or transfer of the
Shares. 
 2.3 A new Rule 21 shall be added as follows: 

“21. Section 409A of the United States Internal Revenue Code 

21.1 Awards granted to US Taxpayers are intended to be exempt from, or comply with, the requirements of Section 409A of the Code, and the
Plan and any Award granted to a US Taxpayer shall be interpreted, operated and administered in a manner consistent with such intention. 

21.2 No setoffs or deductions against any amounts owed to a US Taxpayer by the Company or any member of the Group may be made hereunder to
satisfy the clawback contemplated by Rule 17.2 to the extent that such setoff or deduction would result in adverse tax consequences to a US Taxpayer under Section 409A of the Code. 

21.3 To the extent that any exchange of an Award occurs under Rule 7, 8 or 10 of the Plan, the terms and conditions of any New Right shall not
modify the timing or schedule of payments in effect under the corresponding Old Right or otherwise result in any change to the terms and conditions applicable under the Old Right if such modification or change would result in adverse tax
consequences to a US Taxpayer under Section 409A of the Code. 
 21.4 Notwithstanding any other provision of the Plan to the contrary,
the Committee, to the extent it deems necessary or advisable in its sole discretion, reserves the right, but shall not be required, to unilaterally amend or modify 

  
 Page 15 

 
the Plan, this Appendix 1 and any Award granted under the Plan so that the Award is exempt from, or complies with, the requirements of Section 409A of the Code; provided, however,
that the Committee makes no representations that Awards granted under the Plan will be exempt from Section 409A of the Code and makes no undertaking to preclude Section 409A of the Code from applying to Awards granted under the Plan.”

  
 Page 16EX-10.2

 Exhibit 10.2 

 
  

 
 THE FERGUSON
GROUP 
 EMPLOYEE SHARE PURCHASE PLAN 2019 
  

 

 
 Approved by
an ordinary resolution of the shareholders of 
 the Company on 25 April 2019 and amended by resolution of the Board of the

 Company on 27 January 2021 

 CONTENTS 
  

					
	CLAUSE	  	PAGE	 
		
	 ARTICLE I – DEFINITIONS
	  	 	1	 
		
	 ARTICLE II – PURPOSES
	  	 	6	 
		
	 ARTICLE III – ADMINISTRATION
	  	 	6	 
		
	 ARTICLE IV – ELIGIBILITY
	  	 	6	 
		
	 ARTICLE V – PARTICIPANT CONTRIBUTIONS
	  	 	6	 
		
	 ARTICLE VI – OPTION GRANTS
	  	 	7	 
		
	 ARTICLE VII – EXERCISE OF OPTION
	  	 	8	 
		
	 ARTICLE VIII – WITHDRAWAL AND TERMINATION OF EMPLOYMENT
	  	 	10	 
		
	 ARTICLE IX – SHARES SUBJECT TO PLAN
	  	 	11	 
		
	 ARTICLE X – TAKE-OVER AND LIQUIDATION
	  	 	11	 
		
	 ARTICLE XI – ADJUSTMENT OF OPTIONS
	  	 	13	 
		
	 ARTICLE XII – COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES
	  	 	13	 
		
	 ARTICLE XIII – GENERAL PROVISIONS
	  	 	14	 
		
	 ARTICLE XIV – AMENDMENT
	  	 	15	 
		
	 ARTICLE XV – DURATION OF PLAN
	  	 	15	 
		
	 ARTICLE XVI – EFFECTIVE DATE OF PLAN
	  	 	15	 

  
 -i- 

 INTRODUCTION 

This Ferguson Group Employee Share Purchase Plan 2019 has been established for the benefit of those employees of Subsidiaries of the Company located in the
U.S. or Canada who meet the requirements to participate hereunder. Where permitted by local law, the Company may establish similar plans for employees of the Company or of Subsidiaries of the Company located in jurisdictions outside of the U.S. and
Canada, which plans shall be established under, and operate in conformance with, the laws of such other jurisdictions. 
 ARTICLE I –
DEFINITIONS 
  

	1.01	 Act 

Act means the United Kingdom Income Tax (Earnings and Pensions) Act 2003, as it may be amended from time to time. 

 

	1.02	 Board 

Board means the Board of Directors of the Company or a duly authorised committee thereof. 

 

	1.03	 Capital Reorganisation 

Capital Reorganisation means any capitalisation issue, rights issue, sub-division, consolidation or reduction of
capital or any other variation of the share capital of the Company. 
  

	1.04	 Code 

Code means the U.S. Internal Revenue Code of 1986, as it may be amended from time to time, and regulations thereunder. References to any section of the Code
shall be to that section as it may be renumbered, amended, supplemented or re-enacted. For this purpose, “regulation” means a regulation, ruling or other interpretation or guidance, validly
promulgated by the U.S. Department of Treasury and in effect at the time in question. Reference to a regulation or section thereof includes that regulation or section and any comparable regulation or section that amends, supplements or supersedes
that regulation or section. 
  

	1.05	 Company 

Company means the company incorporated in Jersey as Ferguson plc, with registered number 128484. 

 

	1.06	 Control 

Control shall have the meaning given to that word by section 995 of the United Kingdom Income Tax Act 2007 as it may be amended from time to time. 

 

	1.07	 Date of Exercise 

Date of Exercise means the date prescribed by the Board as the date on which each Option is deemed to be exercised. The Date of Exercise shall be no later than
60 days following the first anniversary of the Date of Grant. 

	1.08	 Date of Grant 

Date of Grant means the date prescribed by the Board as the date on which Options are deemed to be granted. Notwithstanding the preceding sentence
(a) there may not be more than one Date of Grant during a calendar year and (b) each Date of Grant must be within the forty-two day period following: (i) the shareholders’ approval of the
Plan in accordance with Article XVI, (ii) an Annual General meeting of the Company or (iii) the Company’s announcement of its results to the London Stock Exchange. 

 

	1.09	 DI 

DI means a depositary interest representing an ordinary share in the capital of the Company. 

 

	1.10	 DRS statement 

DRS statement means the direct registration system statement of account representing certificated ordinary shares listed and traded on the relevant United
States Stock Exchange held on the Company’s share register maintained in the U.S.. 
  

	1.11	 DTC 

DTC means the Depository Trust Company, being the system used to settle trades of uncertificated ordinary shares listed and traded on the relevant United
States Stock Exchange held on the Company’s share register maintained in the U.S. 
  

	1.12	 Election Date 

Election Date means the last business day of the Enrollment Period or such other date as the Board may determine. 

 

	1.13	 Eligible Employee 

Eligible Employee means a person who on the Date of Grant is an employee of a Participating Company (even if he or she also serves as a director of the Company
or a Subsidiary) and who satisfies the following requirements: 
  

	 	(a)	 he or she has been continuously employed by a Participating Company for a period of at least one year;

  

	 	(b)	 his or her customary employment with the Participating Company is for greater than 20 hours per week; and

  

	 	(c)	 his or her customary employment with the Participating Company is for greater than five months in any calendar
year. 

 The preceding sentence to the contrary notwithstanding, an individual who is a Five Percent Shareholder is not an Eligible
Employee. 
 Notwithstanding the preceding, otherwise Eligible Employees who are citizens or residents of a non-U.S.
jurisdiction (without regard to whether they also are U.S. citizens or are resident aliens within the meaning of Code Section 7701(b)(1)(A)) shall be excluded from coverage under the Plan if the Board determines that: (i) the grant of an
Option under the Plan to a citizen or resident of the non-U.S. jurisdiction is prohibited under the laws of such jurisdiction, or (ii) compliance with the laws of the
non-U.S. jurisdiction would cause the Plan or offering to violate the requirements of Code Section 423. 

  
 2|15 

	1.14	 Enrollment Form 

Enrollment Form means the form, prescribed by the Board, that a Participant uses to authorise deductions from his or her compensation in accordance with
Article V. 
  

	1.15	 Enrollment Period 

Enrollment Period means the period prescribed by the Board during which an Eligible Employee may elect to participate in the Plan with respect to that Offering
Period. 
  

	1.16	 Fair Market Value 

Fair Market Value means, on any given date, the closing middle market quotation of a Share as derived from the Daily Official List of the London Stock Exchange
in the case of a DI priced in Pounds Sterling or from the equivalent such records of the relevant United States Stock Exchange in the case of an ordinary share in the capital of the Company priced in US Dollars. If, on any given date, no Shares are
traded on the London Stock Exchange or the relevant United States Stock Exchange, then Fair Market Value shall be determined with reference to the closing middle market quotation as derived from the Daily Official List of the London Stock Exchange
or as reported by the relevant United States Stock Exchange on the next preceding day that Shares were so traded. 
  

	1.17	 Five Percent Shareholder 

Five Percent Shareholder means any individual who, immediately after the grant of an Option, owns or would be deemed to own more than five percent (5%) of the
total combined voting power or value of all classes of stock of the Company or of any Subsidiary of the Company. For this purpose, (i) an individual shall be considered to own any stock owned (directly or indirectly) by or for his brothers,
sisters, spouse, ancestors or lineal descendants and shall be considered to own proportionately any stock owned (directly or indirectly) by or for a corporation, partnership, estate or trust of which such individual is a shareholder, partner or
beneficiary, and (ii) stock of the Company or any Subsidiary of the Company that an individual may purchase under outstanding options (whether or not granted under this Plan) shall be treated as stock owned by the individual. 

 

	1.18	 Holding Company 

Holding Company has the meaning assigned to it by Section 1159 of the United Kingdom Companies Act 2006. 

  
 3|15 

	1.19	 New York Stock Exchange 

New York Stock Exchange, Inc. or any successor body thereto. 
  

	1.20	 NASDAQ 

NASDAQ means Nasdaq, Inc. or any successor body thereto. 
  

	1.21	 Offering Period 

Offering Period means the period beginning on each Date of Grant and ending on the Date of Exercise relevant to that Offering Period. 

 

	1.22	 Old Ferguson 

Old Ferguson means Ferguson Holdings Limited, a company incorporated in Jersey with registered number 106605. 

 

	1.23	 Old Ferguson Plan 

Old Ferguson Plan means the Old Ferguson Group Employee Share Purchase Plan 2011 (as amended from time to time). 

 

	1.24	 Old Ferguson Share or Old Ferguson Shares 

Old Ferguson Share or Old Ferguson Shares means fully paid ordinary shares in the capital of Old Ferguson; 

 

	1.25	 Option 

Option means an option that entitles the holder to purchase a stated number of Shares in accordance with, and subject to, the terms and conditions prescribed
by the Plan. 
  

	1.26	 Participant 

Participant means an Eligible Employee, including an Eligible Employee who is a member of the Board, who satisfies the requirements of Article IV and who
elects to receive an Option. 
  

	1.27	 Participating Company 

Participating Company means a Subsidiary of the Company located in the U.S. or Canada and designated by the Board as a Participating Company, provided that
such Subsidiary is a “subsidiary corporation” (within the meaning of Code Section 424) of the Company, including a corporation that becomes a Subsidiary of the Company after the adoption of this Plan. It is anticipated that any
Subsidiary located in the U.S. or Canada will be designated by the Board as a Participating Company. 
  

	1.28	 Plan 

Plan means the Ferguson Group Employee Share Purchase Plan 2019 as provided herein and as it may be amended from time to time. 

  
 4|15 

	1.29	 Relevant Date 

Relevant Date means: 
  

	 	(a)	 if the Relevant Event falls within Section 10.01(a), the date on which Control is obtained and any
conditions to which the offer is made subject are satisfied; 

  

	 	(b)	 if the Relevant Event falls within Section 10.01(b), either the date on which the scheme of arrangement is
sanctioned by the court or the date on which the scheme of arrangement becomes effective (as determined by the Board in its absolute discretion); 

  

	 	(c)	 if the Relevant Event falls within Section 10.01(c), the date on which the person first becomes so bound
or entitled; or 

  

	 	(d)	 if the Relevant Event falls within Section 10.01(d), the date on which notice of the resolution is given.

 If a Relevant Event occurs on account of a series of transactions, the “Relevant Date” is the date of the last of such
transactions. 
  

	1.30	 Relevant Event 

Relevant Event shall have the meaning given to that term in Section 10.01. 
  

	1.31	 Scheme of Arrangement 

Scheme of Arrangement means the scheme of arrangement pursuant to Article 125 of the Companies (Jersey) Law 1991, as amended, to introduce the Company as a
new, Jersey-incorporated holding company to the Group. 
  

	1.32	 Scheme of Arrangement Effective Date 

Scheme of Arrangement Effective Date means 10 May 2019 being the date on which the Scheme of Arrangement became effective in accordance with its terms.

  

	1.33	 Share or Shares 

Share or Shares means fully paid ordinary shares of 10 pence each in the capital of the Company, whether held in certificated or uncertificated form, via a DRS
statement or via the DTC. References to “Share” or “Shares” include (i) Shares; (ii) where appropriate the DIs representing such shares; and/or (iii) shares or DIs representing those shares or DIs following any
reorganisation of the share capital of the Company. 
  

	1.34	 Subsidiary 

Subsidiary has the meaning assigned to it by Section 1159 of the United Kingdom Companies Act 2006. 

 

	1.35	 United States Stock Exchange 

United States Stock Exchange means the New York Stock Exchange, NASDAQ or such other recognised stock exchange in the United States, on which the Shares are
listed. 

  
 5|15 

	1.36	 U.S. 

U.S. means the United States of America. 

ARTICLE II – PURPOSES 
 The Plan is
intended to assist the Participating Companies in recruiting and retaining individuals with ability and initiative by enabling such persons to participate in the future success of the Company and its Subsidiaries and to associate their interests
with those of the Company and its shareholders. The Plan is intended to permit the grant of Options qualifying under Code Section 423, but no Option shall be invalid for failure to qualify under Code Section 423. The proceeds received by
the Company from the sale of Shares issued pursuant to this Plan shall be used for general corporate purposes. 
 ARTICLE III –
ADMINISTRATION 
 The Plan shall be administered by the Board. The Board shall have complete authority (subject to Article XIV hereof) to:
(i) interpret all provisions of this Plan; (ii) adopt, amend, and rescind rules and regulations pertaining to the administration of the Plan; and (iii) make all other determinations necessary or advisable for the administration of
this Plan. The express grant in the Plan of any specific power to the Board shall not be construed as limiting any power or authority of the Board. Any decision made, or action taken, by the Board in connection with the administration of this Plan
shall be final and conclusive. Neither the Board nor any member thereof shall be liable for any act done in good faith with respect to this Plan or any Option. All expenses of administering this Plan shall be borne by the Company. 

The Board, in its discretion, may delegate to one or more officers of the Company all or part of the Board’s authority and duties. The Board may revoke
or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Board’s delegate or delegates that were consistent with the terms of the Plan. 

ARTICLE IV – ELIGIBILITY 
 Each
person who is or will be an Eligible Employee on the Date of Grant may elect to participate in the Plan by completing an Enrollment Form in accordance with Section 5.01(a) and returning it on or before the Election Date to such person as the
Board may nominate. 
 ARTICLE V – PARTICIPANT CONTRIBUTIONS 

 

	5.01	 Enrollment Form 

 

	(a)	 An Eligible Employee who satisfies the requirements of Article IV may become a Participant for an Offering
Period by completing an Enrollment Form and returning it to the Board or its nominee on or before the Election Date. A Participant’s Enrollment Form shall authorise uniform fixed-dollar (in whole U.S. or Canadian dollars, as the case may be)
deductions from his or her compensation for purposes of the Plan in multiples of at least $25 and not more than $400 per month (or such other minimum or maximum amounts as the Board may prescribe from time to time). Notwithstanding the previous
sentence, the maximum monthly contribution which a Participant may make in 

  
 6|15 

	 	
respect of all Options granted under the Plan may not exceed the U.S. (or Canadian, as the case may be) dollar equivalent of the maximum monthly contribution from time to time allowed under a
savings-related share option scheme registered with the United Kingdom H.M. Revenue and Customs under the Act. 

  

	(b)	 Except as provided in this Section 5.01(b), a Participant may not contribute to, or otherwise accumulate
funds under, the Plan except by compensation deductions in accordance with his or her Enrollment Form. Notwithstanding the preceding sentence, a Participant who is on an unpaid leave of absence shall be permitted to contribute to the Plan by
personal cheque an amount not to exceed the aggregate amount that but for such unpaid leave otherwise would have been deducted from his or her compensation, subject to such cheque clearing upon first presentation. Unless otherwise determined by the
Board, (i) such cheque must be delivered to the Board or its nominee within the earlier of ten (10) business days following the end of the unpaid leave or ten (10) business days prior to the Date of Exercise, and (ii) the minimum
amount that may be contributed to the Plan by personal cheque shall be $25 (in U.S. or Canadian dollars, as the case may be), calculated on a monthly basis. A Participant who revokes his or her Enrollment Form for an Offering Period under
Section 8.01 may not contribute to the Plan for such Offering Period by delivery of a cheque, and a Participant who ceases to be an Eligible Employee for any reason may not thereafter contribute to the Plan by delivery of a cheque.

  

	(c)	 A Participant’s Enrollment Form becomes operative on the Election Date. Such Enrollment Form may be
amended or revoked before the Election Date but once an Enrollment Form becomes operative, it will continue in effect and may not thereafter be amended until the earliest of: (i) the Date of Exercise, (ii) his or her termination of
employment or (iii) his or her withdrawal from the Plan in accordance with Section 8.01. 

  

	5.02	 Participant’s Account 

A recordkeeping account shall be established for each Participant with respect to each Offering Period. Amounts deducted from a Participant’s compensation
for that Offering Period under Section 5.01(a) and, if applicable, amounts contributed by personal cheque with respect to that Offering Period under Section 5.01(b), shall be credited to his or her account for such Offering Period. 

ARTICLE VI – OPTION GRANTS 
  

	6.01	 Number of Shares 

 

	(a)	 Each Eligible Employee who is a Participant on the Date of Grant shall be granted an Option on the Date of
Grant. The number of Shares subject to such Option shall, subject to Section 6.01(c) below, be the number of whole Shares determined by dividing the aggregate of the contributions which the Participant has elected to make under
Section 5.01(a) by the price per Share determined under Section 6.02. Notwithstanding anything herein to the contrary, no Participant will be granted an Option or Options for more than: (i) in any calendar year, a number of Shares
determined by dividing $25,000 by the Fair Market Value on the Date of Grant; (ii) 5,000 Shares in any single Offering Period; or (iii) the limitations of Section 9.03 (10% in 10 year limit). 

  
 7|15 

	(b)	 An Option covering a fractional Share will not be granted under the Plan. Any amount remaining to the credit of
the Participant’s account shall be returned without interest to the Participant: (i) after the exercise of an Option, (ii) if he or she does not continue to participate in the Plan, or (iii) if the Options are cancelled by the
Board pursuant to Section 7.09. 

  

	(c)	 Subject to Article IX, the Board may prescribe a lesser maximum number of Shares for which Options may be
granted on any Date of Grant. If the aggregate Shares for which Options are applied for in an Offering Period exceed the limit imposed by the Board for the Offering Period, the Options granted will be reduced pro rata for each Participant until the
excess applications are eliminated. 

  

	6.02	 Option Price 

The price per Share for Shares to be purchased on the exercise of an Option shall be the amount prescribed by the Board; provided that such price shall not be
less than eighty-five percent (85%) of the Fair Market Value on the Date of Grant. In no event shall the price per Share for Shares to be purchased on the exercise of an Option be less than the nominal value of a Share. 

ARTICLE VII – EXERCISE OF OPTION 
  

	7.01	 Automatic Exercise 

Subject to the provisions of Articles VIII, IX and X, and except as provided below in this Article VII, each Option shall be exercised automatically as of the
Date of Exercise for the lesser of: 
  

	(a)	 the number of whole Shares determined by dividing the amount credited under Article V to the Participant’s
account at the Date of Exercise by the price per Share determined under Section 6.02; and 

  

	(b)	 the number of Shares over which the Option was granted. 

If, at the Date of Exercise, the Participant is subject to any dealing restrictions under the Financial Conduct Authority’s Listing Rules, Regulation
(EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse or any equivalent or successor legislation or any relevant share dealing code of the Company, exercise shall be suspended until such later date as
those dealing restrictions lift. 
  

	7.02	 Relevant Events 

Notwithstanding any other provision of this Plan, if a Relevant Event occurs, except as provided in Section 10.03 the Date of Exercise for all outstanding
Options shall be the Relevant Date. 

  
 8|15 

	7.03	 Nontransferability 

Each Option granted under this Plan shall be nontransferable other than by will or the laws of descent and distribution. During the lifetime of the Participant
to whom the Option is granted, the Option may be exercised only by the Participant. No right or interest of a Participant in any Option shall be liable for, or subject to, any lien, obligation, or liability of such Participant. A Participant’s
Option will lapse immediately if he or she purports to transfer it or to create any interest in it in favour of a third party or if a bankruptcy order is made in respect of him or her or a similar event occurs under the laws of any country other
than England. 
  

	7.04	 Employee Status 

Leaves of absence not exceeding three (3) months shall not be deemed interruptions of continuous employment. However, a leave of absence exceeding three
(3) months shall be deemed an interruption of continuous employment unless the individual has a right to reemployment provided either by statute or by contract. 
  

	7.05	 Delivery of Certificates 

Subject to the provisions of Articles IX and XII, the Company shall procure the delivery to each Participant for each Offering Period of the certificate or
certificates evidencing the Shares purchased by such Participant with respect to that Offering Period. 
  

	7.06	 Vesting 

A Participant’s interest in the Shares purchased upon the exercise of an Option shall be immediately vested and nonforfeitable. 

 

	7.07	 Rights of new Shares issued 

Any new Shares issued on the exercise of an Option must rank equally in all respects with other Shares then in issue except for rights which attach to Shares
by reference to a record time or date prior to the time or date of issue. 
  

	7.08	 Listing 

The Company must apply to the Financial Conduct Authority to have any new Shares issued under the Plan admitted to the Official List and to the London Stock
Exchange to have the Shares admitted to trading. The Company need not do so, however, if the Shares are not traded on the London Stock Exchange. If the Shares are traded on any other stock exchange, the Company shall apply to the relevant
authorities to have the Shares issued under the Plan admitted to trading on such exchange. 
  

	7.09	 Cancellation of “Underwater” Options 

The Company, by action of its Board, may cancel all existing Options and return all Participant contributions (without interest thereon) to Participants if the
Board determines, in its sole discretion, that the price per Share under Section 6.02 for Shares to be purchased on the exercise of an Option is expected to be more than the Fair Market Value of Shares on the Date of Exercise. Such
determination shall be made not less than 5 business days prior to the Date of Exercise. 

  
 9|15 

 ARTICLE VIII – WITHDRAWAL AND TERMINATION OF EMPLOYMENT 

 

	8.01	 Withdrawal Generally 

A Participant may revoke his or her Enrollment Form for an Offering Period and withdraw from participation in the Plan for that Offering Period by giving
written notice to that effect to the Board or its nominee at any time before the Date of Exercise. In that event, (i) the entire amount credited to his or her account will be paid to him or her without interest as soon as administratively
practicable after receipt of the notice of withdrawal, (ii) no further payroll deductions will be made from his or her compensation for that Offering Period and (iii) no amount may be contributed by him or her to the Plan thereafter
pursuant to Section 5.01(b) for that Offering Period. Except as provided in Section 8.03, a Participant shall be deemed to have elected to withdraw from the Plan in accordance with this Section 8.01 if he or she ceases to be an
Eligible Employee for any reason and, in such event, the Participant shall not have any claim against the Company or any Subsidiary of the Company on account of his or her deemed withdrawal from the Plan. 

 

	8.02	 Subsequent Participation 

A Participant who has withdrawn his or her participation in the Plan under Section 8.01 may submit a new Enrollment Form to the Board and resume
participation in the Plan for any later Offering Period, provided that he or she then satisfies the requirements of Article IV and the Board or its nominee receives his or her Enrollment Form on or before the applicable Election Date. 

 

	8.03	 Death, Disability, Retirement or other Termination of Employment 

Subject to Sections 7.04 and 7.09, if a Participant ceases his or her continuous employment as an Eligible Employee on account of: 

 

	(a)	 death, 

  

	(b)	 redundancy (as determined by the Committee), 

 

	(c)	 injury or disability (evidenced to the satisfaction of the Committee), 

 

	(d)	 retirement, 

  

	(e)	 his or her employer ceasing to be a Participating Company; 

 

	(f)	 the business (or part of a business) in which he or she is employed being transferred to a person who is not a
Participating Company, 

  

	(g)	 for any other reason at the discretion of the Board, 

such Participant (or his or her executor or heir) shall, if the date of cessation of his or her employment is no more than three (3) months prior to the
Date of Exercise, have the right to continued participation in the Plan (without any further contributions) and to exercise any Option on or before the Date of Exercise, using the amount credited to his or her account on the date of his or her
termination of employment. If a Participant ceases to be continuously employed as an Eligible Employee under any other circumstances, his or her Option will terminate concurrently and all funds credited to his or her account under Section 5.02
will be returned without interest to him or her as soon as administratively practicable. 

  
 10|15 

 ARTICLE IX – SHARES SUBJECT TO PLAN 

 

	9.01	 Aggregate Limit 

For the purposes of this Plan, the maximum aggregate number of Shares and Old Ferguson Shares that may be issued or transferred pursuant to the exercise of
options (whether granted under this Plan or the Old Ferguson Plan) is 50,000,000. The maximum aggregate number of Shares and Old Ferguson Shares that may be issued or transferred under this Plan shall be subject to adjustment as provided in Article
XI. 
  

	9.02	 Reallocation of Shares 

If an Option is terminated, in whole or in part, for any reason other than its exercise, the number of Shares allocated to the Option or portion thereof may be
reallocated to other Options to be granted under this Plan. 
  

	9.03	 10% in 10 year limit 

The number of Shares over which Options to subscribe for unissued Shares may be granted under the Plan on any date shall be limited so that, when aggregated
with: 
  

	(a)	 the number of Shares and Old Ferguson Shares issued in the 10 year period ending on that date under any other
employee share scheme operated by the Company or Old Ferguson (other than an employee share option scheme); and 

  

	(b)	 the number of Shares and Old Ferguson Shares issued or capable of being issued pursuant to options that have
been granted in the 10 year period ending on that date under any other employee share option scheme operated by the Company and Old Ferguson, 

the total number of Shares and Old Ferguson Shares shall not exceed 10% of the issued ordinary share capital of the Company on that date. In this Section,
“issue” means the allotment and issue of Shares or Old Ferguson Shares forming part of the authorised but unissued share capital of the Company or Old Ferguson and derivative expressions shall be construed accordingly. 

ARTICLE X – TAKE-OVER AND LIQUIDATION 
  

	10.01	 Application 

This Article X applies if: 
  

	(a)	 any person (either alone or together with any person acting in concert with him or her) obtains Control of the
Company as a result of making: 

  

	 	(i)	 a general offer to acquire the whole of the issued ordinary share capital of the Company which is 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 of the Shares; 

 

	(b)	 any person proposes to obtain Control of the Company in pursuance of a compromise or arrangement sanctioned by
the court under Article 125 of the Companies (Jersey) Law 1991 or its equivalent under applicable law; 

  
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	(c)	 any person becomes bound or entitled to acquire Shares in the Company under Part 18 of the Companies (Jersey)
Law 1991 or its equivalent under applicable law; or 

  

	(d)	 notice is given of a resolution for the voluntary or compulsory
winding-up of the Company, 

 (each a Relevant Event). 

 

	10.02	 Automatic Exercise or Cancellation of Option 

Where this Article X applies and subject to Section 10.03 and Article XI below, all outstanding Options will (unless the Board determines otherwise prior
to the Relevant Date) be automatically exercised on the Relevant Date (to the extent of the amount credited to each Participant’s account under Section 5.02), provided that the price per Share under Section 6.02 is not expected (as
determined by the Board) to be in excess of the relevant offer price or consideration for Shares, if applicable. Where this Article X applies, and subject to Section 10.03 below, any outstanding Options that are not fully exercised on the
Relevant Date shall lapse automatically, and any amounts credited to the Participant’s account under Section 5.02 (and not applied for such exercise) shall be returned to him or her without interest as soon as administratively practicable.

  

	10.03	 Rollover of Option 

If a Relevant Event occurs and notice of a replacement option is given to Participants (with the consent of the entity which has obtained Control of the
Company), then, on the Relevant Date, any Option which has not lapsed (the old option) shall automatically be released and shall be replaced by an option (the new option) which, in the opinion of the Board, is equivalent
to the old option but relates to shares in a different company (whether the acquiring company itself or another company) (the new grantor). 

Upon such replacement, the provisions of the Plan shall be construed as if: 
  

	(a)	 the new option were an option granted under the Plan at the same time as the old option; 

 

	(b)	 references in the Plan to the Company were references to the new grantor, provided that, except as may be
required to comply with Code Section 423, references to the Company within the definition of Participating Company shall continue to be construed as references to Ferguson plc (with company number 128484); 

 

	(c)	 references in the Plan to the Board were references to the board of directors of the new grantor;

  

	(d)	 references in the Plan to Shares were references to shares in the new grantor; 

 

	(e)	 the provisions for Participant contributions under Article V entered into in connection with the old option had
been made in connection with the new option; and 

  

	(f)	 the Date of Purchase in relation to the new option was the same as that in relation to the old option.

  
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 It is intended that any such replacement of the old options shall be made in accordance with Code Sections
424(a) and (h)(3). 
  

	10.04	 Change in Holding Company 

Without prejudice to the operation of Article XI, Options shall not be exercisable without the consent of the Board under the foregoing provisions of this
Article X if the purpose and effect of the Relevant Event, together with any associated transactions, is to create a new holding company for the Company, such company having substantially the same shareholders and proportionate shareholdings as
those of the Company immediately prior to the Relevant Event. Unless the Board determines otherwise in its absolute discretion, an Option will in such circumstances be exchanged for equivalent options in accordance with Article XI below. 

ARTICLE XI – ADJUSTMENT OF OPTIONS 
  

	11.01	 Capital Reorganisation 

In the event of any Capital Reorganisation (or the implementation by the Company of a demerger or payment of a super dividend which would otherwise materially
affect the value of an Option), the price per Share under Section 6.02, the description of Shares and the number of Shares comprised in an Option may be adjusted in such manner as the Board may determine, provided that: 

 

	(a)	 no adjustment shall be made pursuant to this rule which would materially increase the aggregate price per Share
under Section 6.02 of any Option; and 

  

	(b)	 no adjustment may have the effect of reducing the price per Share under Section 6.02 to less than the
nominal value (as it also may be adjusted) of a Share. 

 It is intended that any such adjustment shall be made in accordance with Code
Sections 424(a) and (h)(3). 
  

	11.02	 Notice to Participants 

The relevant Participants shall be notified of any adjustment to Options made pursuant to this Article 11.02. 

ARTICLE XII – COMPLIANCE WITH LAW AND APPROVAL OF 

REGULATORY BODIES 
 No Option shall be
exercisable, no Shares shall be issued or acquired, no certificates for Shares shall be delivered, and no payment shall be made under this Plan except in compliance with all applicable federal and state laws and regulations (including, without
limitation, withholding tax requirements), the laws of England, the laws of Jersey, any listing agreement to which the Company is a party, and the rules of all stock exchanges on which the Company’s Shares may be listed. The Company shall have
the right to rely on an opinion of its counsel as to such compliance. Any share certificate issued to evidence Shares for which an Option is exercised may bear such legends and statements as the Board may deem advisable to assure compliance with

  
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federal and state laws and regulations. No Option shall be exercisable, no Shares shall be issued or acquired, no certificate for Shares shall be delivered, and no payment shall be made under
this Plan until the Company has obtained such consent or approval as the Board may deem advisable from regulatory bodies having jurisdiction over such matters. 

ARTICLE XIII – GENERAL PROVISIONS 
  

	13.01	 Effect on Employment and Service 

Neither the adoption of this Plan, its operation, nor any documents describing or referring to this Plan (or any part thereof) shall confer upon any individual
any right to continue in the employ of the Company or of any Subsidiary of the Company or in any way affect any right and power of the Company or any Subsidiary of the Company to terminate the employment of any individual at any time with or without
assigning a reason therefor. 
  

	13.02	 Unfunded Plan 

The Plan, insofar as it provides for grants, shall be unfunded, and the Company shall not be required to segregate any assets that may at any time be
represented by grants under this Plan. Any liability of the Company to any person with respect to any grant under this Plan shall be based solely upon any contractual obligations that may be created pursuant to this Plan. No such obligation of the
Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company. 
  

	13.03	 Rules of Construction 

Headings are given to the articles and sections of this Plan solely as a convenience to facilitate reference. The reference to any statute, regulation or
statutory instrument of UK Parliament or the legislative bodies of Jersey, the U.S. or the European Union (the EU), shall include any modification, amendment, re-enactment or successor of such
provision of law (and shall, in respect of any EU legislation, include any UK legislation enacted in replacement thereof following the UK’s departure from the EU). 
  

	13.04	 Data Protection 

By accepting the grant of an Option, a Participant acknowledges that the Company or any member of the Group may hold, process and transfer personal data
relating to them to other members of the Group or to any third parties engaged by them (whether within or outside of the European Economic Area (EEA) and that personal data may also be processed outside the EEA by the Company or any
member of the Group or by one or more held or of its or their service providers) for any and all purposes related to the operation and administration of the Plan and/or in order to meet any legal obligation, in each case in accordance with the
Company’s Share Plan Data Protection Protocol and applicable law. 

  
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 ARTICLE XIV – AMENDMENT 

 

	14.01	 Amendment Generally 

The Board may amend or terminate this Plan from time to time; provided, however, that no amendment may become effective until shareholder approval is obtained
if: (i) the amendment increases the aggregate number of Shares that may be issued under the Plan, (ii) the amendment changes the class of individuals eligible to become Participants, (iii) the amendment changes the corporations whose
employees may be granted an Option or the Shares that may be issued upon exercise of an Option, (iv) or, except for immaterial amendments designed to facilitate the administration of the Plan or amendments which the Board considers necessary or
desirable to obtain or retain favourable tax, exchange control or regulatory treatment for Participants or for the Company or any Subsidiary, the amendment benefits employees or Participants or increases any individual or Plan limit. No amendment
shall, without a Participant’s consent, adversely affect any rights of such Participant under any Option outstanding at the time such amendment is made. For the avoidance of doubt, any amendment deemed by the Board to be necessary to comply
with regulatory requirements or to avoid disqualification under Code Section 423 shall not be adverse for this purpose. Furthermore, shareholder approval of any amendment shall be sought to the extent such approval is necessary and required for
the Plan to satisfy the requirements of Code Section 423 or other applicable laws. 
  

	14.02	 Administrative Amendments 

Notwithstanding Section 14.01, without shareholder consent and without regard to whether such an action may be adverse to any Participant rights, the
Board shall be entitled to shorten the length of any ongoing offerings, limit the frequency and/or number of changes in the amount withheld during an offering, establish the exchange ratio applicable to amounts withheld in a currency other than U.S.
or Canadian dollars, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company’s or a Subsidiary’s processing of properly completed withholding elections,
establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Shares for each Participant properly correspond with amounts withheld from his or her compensation,
and establish such other limitations or procedures as the Board determines in its sole discretion advisable and which are consistent with the Plan. 

ARTICLE XV – DURATION OF PLAN 
 No
Option may be granted under this Plan after 25 April 2029. Options granted before that date shall remain valid in accordance with their terms and the terms of the Plan. 

ARTICLE XVI – EFFECTIVE DATE OF PLAN 

Options may be granted under this Plan upon its approval by a majority of the votes entitled to be cast by the Company’s shareholders, voting either in
person or by proxy, at a duly held shareholders’ meeting within twelve months after this Plan is adopted by the Board. 

  
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