Document:

EX-10.12 RULES OF AMVESCAP INTL. SHARESAVE PLAN

 

EXHIBIT 10.12

AMVESCAP PLC

RULES OF THE AMVESCAP INTERNATIONAL

SHARESAVE PLAN

 

Shareholders Approval 8 May 1997

 

 

 

THE AMVESCAP INTERNATIONAL SHARESAVE PLAN

	 	 	 	 	 
	1.
	 	DEFINITIONS	 	2
	 
	 	 	 	 
	2.
	 	GRANT OF OPTIONS	 	5
	 
	 	 	 	 
	3.
	 	PLAN LIMITS	 	6
	 
	 	 	 	 
	4.
	 	TERMS OF SAVINGS ARRANGEMENTS AND OPTIONS	 	7
	 
	 	 	 	 
	5.
	 	TAKE-OVER AND LIQUIDATION	 	10
	 
	 	 	 	 
	6.
	 	ALTERATIONS OF SHARE CAPITAL	 	11
	 
	 	 	 	 
	7.
	 	ALLOTMENT AND LISTING	 	12
	 
	 	 	 	 
	8.
	 	TERMINATION OF EMPLOYMENT	 	12
	 
	 	 	 	 
	9.
	 	ADMINISTRATION OF THE PLAN	 	13
	 
	 	 	 	 
	10.
	 	TERMINATION OF THE PLAN	 	33
	 
	 	 	 	 
	11.
	 	GENERAL	 	13
	 
	 	 	 	 
	SCHEDULE I — FRANCE	 	14
	 
	 	 	 	 
	SCHEDULE II — JAPAN	 	16
	 
	 	 	 	 
	SCHEDULE III— US	 	17
	 
	 	 	 	 
	SCHEDULE IV — HONG KONG	 	19
	 
	 	 	 	 
	SCHEDULE V — CANADA	 	20

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THE AMVESCAP INTERNATIONAL SHARESAVE PLAN

DEFINITIONS

	1.1	 	In this Plan, unless the context otherwise requires, the following
words and expressions shall have the following meanings, namely:

Adoption Date means the date on which the Plan is adopted by the Company in general meeting;

AMVESCAP 1997 Sharesave Scheme means the Inland Revenue approved savings-related share option
scheme established by the Company on 8 May 1997;

Associated Company shall have the meaning given to those words by section 187(2) of the Taxes
Act;

the Auditors means the auditors for the time being of the Company;

the Board means the Board of Directors for the time being of the Company (or the directors
present at a duly convened meeting of such Board) or a duly authorised committee thereof;

the Company means AMVESCAP PLC;

Continuous Service has the same meaning as “continuous employment” in the Employment Rights Act
1996, or such other meaning as the Board may think fit to apply in any particular circumstances;

Control shall have the meaning given to that word by section 840 of the Taxes
Act; 

the Date of Grant means the date on which an Option is granted;

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

Eligible Employee means any employee or director who is eligible to participate in the Plan under
the provisions of rule 2.3;

Exercise Price means the price per Share, expressed in sterling, payable on the exercise of an
Option as determined under rule 2,5;

Grant Period means the period of 42 days commencing on either of the following:-

	(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 or
other period;
	 
	(c)	 	any day on which the Board resolves that exceptional circumstances
exist which justify the grant of Options

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Provided that no grant of an Option shall be made at any time which would offend against the Model
Code or any rules or statements issued by the Company;

the Group means the Company and such of the Subsidiaries as the Board has resolved be included in
the Group for the time being for the purposes of the Plan and Member of the Group shall be
construed accordingly;

the Invitation Date means the date on which an invitation to apply for an Option is
issued; 

London Stock Exchange means The London Stock Exchange Limited;

the Maturity Date means in relation to any Option or application for an Option, such date as is
stipulated by the Board in the invitation to apply for the Option or in any explanatory material
relating to the Option which shall be not later than 27 months after the Date of Grant;

Maximum Savings Contribution means £250 or such greater amount as the Board shall from time to
time determine or (where the Savings Contribution is expressed in a Nominated Currency) the
Nominated Currency equivalent thereof where the equivalent amount has been calculated by reference
to the rate of exchange determined at the Invitation Date pursuant to rule 2.2 or such other rate
as the Board may from time to time determine pursuant to rule 4.6;

Minimum Savings Contribution means £5 (or such other minimum amount as is for the time being
permitted under the AMVESCAP 1997 Savings Related Share Option Scheme) or (where the Savings
Contribution is expressed in a Nominated Currency) the Nominated Currency equivalent thereof where
the equivalent amount has been calculated by reference to the rate of exchange determined at the
Invitation Date pursuant to rule 2.2 or such other rate as the Board may from time to time
determine pursuant to rule 4.6;

the Model Code means the model code for securities transactions by directors of listed companies
issued by the London Stock Exchange;

Monthly Contribution means the monthly sum which shall not be less than the Minimum Savings
Contribution nor more than the Maximum Savings Contribution which a Participant has elected to
save under his Savings Arrangement which may be expressed either in whole sterling pounds or, at
the discretion of the Board, in a Nominated Currency the amount of which is equivalent to an
amount of whole sterling pounds where the equivalent amount has been calculated by reference to
the rate of exchange determined prior to the Invitation Date pursuant to rule 2.2. or such other
rate as the Board may from time to time determine pursuant to rule 4.6;

Nominated Currency means any currency nominated by the Board pursuant to rule 2.2;

Option means a right to acquire Shares granted under the Plan;

Option Holder means any individual who holds a subsisting Option (or, where the context permits,
the legal personal representatives of a deceased Option Holder);

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Redundancy shall have the meaning given to that word in the Employment Rights Act 1996, or such
other meaning as the Board may think fit to apply in relation to any particular cessation of
employment;

Rules means the rules of the Plan for the time being amended in accordance with their terms;

Savings Arrangement means such savings arrangement relating to an Option as may be approved by
the Board for the purposes of the Plan from time to time;

the Plan means this Plan as amended from time to time;

Shares means fully paid ordinary shares in the capital of the Company which satisfy paragraphs
10 to 14 of Schedule 9 to the Taxes Act;

Sharesave Scheme means a savings-related share option scheme established by the Company;

Specified Age means age 60;

Subsidiary means any subsidiary of the Company within the meaning of section 736 of the
Companies Act 1985 over which the Company has Control;

Taxes Act means the Income and Corporation Taxes Act 1988;

	1.2	 	Where the context so permits the singular shall include the plural and
vice versa and the masculine shall include the feminine.
	 
	1.3	 	References to any Act shall include any statutory modification,
amendment or re-enactment thereof.

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GRANT OF OPTIONS

	2.1	 	The Board may, during a Grant Period, but otherwise in its absolute discretion, invite such
Eligible Employees as it shall determine to apply for Options at the Exercise Price.
	 
	2.2	 	The Board may nominate a currency other than pounds sterling in which Eligible Employees may
elect to save pursuant to rule 4.1, and may determine an exchange rate for pounds sterling
and such Nominated Currency which shall be used at the Invitation Date for the purpose of
calculating the Nominated Currency equivalent of the Monthly Contribution, the Minimum
Savings Contribution and the Maximum Savings Contribution. At any time, there may be more
than one currency nominated pursuant to this rule.
	 
	2.3	 	Any employee or director of a company within the Group whose contract of service requires
him to work for a company which is a Member of the Group, and has been in Continuous Service
with one or more company or companies in the Group for such period (not exceeding five
years) prior to the Invitation Date as the Board may determine, is eligible to join the
Plan, unless he has given, or been given, notice to terminate his contract of employment.
	 
	2.4	 	Subject to the specific provisions contained in these Rules, the form, manner and timing of
invitations to apply for Options, the form of any Savings Arrangement, the Maturity Dates of
the Options, and the maximum number of Shares in respect of which invitations are made on any
day, shall be at the absolute discretion of the Board.
	 
	2.5	 	The Exercise Price shall be determined by the Board but shall not be less than the higher of:

	 	(a)	 	in the case of an Option to subscribe for Shares, the nominal value of a Share on the
Date of Grant; and
	 
	 	(b)	 	the Minimum Price.

	2.6	 	For the purposes of rule 2.5(b), the Minimum Price means such amount as is stipulated by the
Board at the Invitation Date being an amount not less than 80 per cent of the middle market
quotation of a Share, as derived from the Daily Official List of the London Stock Exchange,
for the Dealing Day immediately preceding the Invitation Date.
	 
	2.7	 	If an Eligible Employee wishes to apply for an Option he must, within such period (which
shall not be less than 14 days nor more than 21 days) after the Invitation Date as is stated
in the invitation, deliver to the Company a form of application as prescribed by the Board
together with a duly completed and signed application for a Savings Arrangement.
	 
	2.8	 	Following the receipt by the Company of valid applications the Board may, subject to rules
2.8 and 2.9, on a single date which shall not be later than 42 days after the Invitation
Date, grant all (but not some of) the Options for which application has been made on that
occasion by Eligible Employees (provided that they comply with the conditions of eligibility
in rule 2.3 on the Date of Grant) in consideration of such Eligible Employees agreeing to
enter into the Savings Arrangements. As soon as practicable thereafter, the Board shall
procure the issue of an option certificate to each Eligible Employee who has been granted an
Option. No cash payment shall be made for the grant of an Option.

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	2.9	 	The Board may, in its sole discretion, treat late applications as valid unless they are
received after the Date of Grant.

	2.10	 	If valid applications are received for Options over a number of Shares in excess of that
which the Board has determined to make available on a particular occasion, the Board may scale
down applications, in such manner as it may consider appropriate, provided that such scaling
down shall not affect prospective Option Holders more or less favourably than if such scaling
down were made pursuant to the terms of the AMVESCAP 1997 Sharesave Scheme.

PLAN LIMITS

	3.1	 	No individual may be invited to apply for, or may be granted, an Option over such number of
Shares that the granting of such Option and the entry into the related Savings Arrangement
would result in the infringement of rule 3.2 or 3.3.

	3.2	 	No Eligible Employee may be granted an Option if his monthly contributions under the related
Savings Arrangement, when added to the sum of his monthly contributions under any other
subsisting Sharesave Scheme, would exceed £250 or such greater amount as is for the time
being permitted by the Board under the AMVESCAP 1997 Sharesave Scheme or (at the discretion
of the Board) the Nominated Currency equivalent thereof where the equivalent amount has been
calculated by reference to the rate of exchange determined at the Invitation Date pursuant to
rule 2.2 or such other rate as the Board may from time to time determine pursuant to rule
4.6.
	 
	3.3	 	No Option shall be granted if the result of that grant would be that:

	 	(a)	 	the aggregate number of Shares that could be issued on the exercise of that
Option and any other Options granted at the same time, when added to the number of
Shares that:

	 	(i)	 	could be issued on the exercise of any other subsisting
share options granted during the preceding ten years under the Plan or any
other share option plan established by the Company; or
	 
	 	(ii)	 	have been issued on the exercise of any share option
granted during the preceding ten years under the Plan or any other share
option plan established by the Company; or
	 
	 	(iii)	 	have been issued during the preceding ten years under any
profit sharing or other employee share incentive plan (not being a share
option plan) established by the Company;

would exceed ten per cent of the ordinary share capital of the Company for the time being in issue;
or

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	 	(b)	 	the aggregate number of Shares that could be issued on the exercise of that
Option and any other Options granted at the same time, when added to the number of
Shares that:

	 	(i)	 	could be issued on the exercise of any other subsisting
share options granted during the preceding five years under the Plan or any
other share option plan established by the Company; or
	 
	 	(ii)	 	have been issued on the exercise of any share option granted
during the preceding five years under the Plan or any other share option plan
established by the Company; or
	 
	 	(iii)	 	have been issued during the preceding five years under any
profit sharing or other employee share incentive Plan (not being a share
option plan) established by the Company;

would exceed five per cent of the ordinary share capital of the Company for the time being in
issue.

	3.4	 	No Option shall be granted under the Plan more than ten years after the date on which the
Plan is approved by the Company.

TERMS OF SAVINGS ARRANGEMENTS AND OPTIONS

	4.1	 	The Monthly Contribution under an Eligible Employee’s Savings Arrangement shall be subject
to the limits in rule 3.2 and to the provisions of rule 4.4. An Eligible Employee may elect
to save in either whole sterling pounds, or (at the discretion of the Board) in an equivalent
amount in a Nominated Currency. The equivalent amount of the Nominated Currency shall be
calculated by reference to the rate of exchange fixed at the Invitation Date pursuant to rule
2.2 or such other rate as the Board may determine from time to time pursuant to rule 4.6.
	 
	4.2	 	The Monthly Contribution shall, unless the Board agrees to a different method for collection,
be deducted from pay monthly.
	 
	4.3	 	If an Option Holder misses more than six Monthly Contributions under the Savings
Arrangement, the Option shall lapse. If an Option Holder withdraws monies from his Savings
Arrangement other than with a view to exercise of a related Option, that Option shall lapse.
	 
	4.4	 	If applications are scaled down under rule 2.10 on any occasion, the monthly contributions
under the Savings Arrangements which Eligible Employees have specified in their applications
shall, where necessary, be scaled down to such sums in whole pounds sterling (or whole units
of an equivalent amount in a Nominated Currency, as the case may be where the equivalent
amount of the Nominated Currency has been calculated by reference to the exchange rate
determined at the Invitation Date pursuant to rule 2.2). The resulting Monthly Contribution
shall not be less than the Minimum Savings Contribution.

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	4.5	 	The Savings Arrangement shall be personal to the Eligible Employee and, regardless of
the terms of the Option, any savings of an Eligible Employee arising under it shall be the
property of such Eligible Employee concerned.

	4.6	 	Where the Monthly Contribution is paid in a Nominated Currency and the amount is equivalent
to a sterling amount calculated on the basis of the exchange rate determined at the
Invitation Date pursuant to rule 2.2 (the Original Sterling Amount) the Board may, on one or
more occasions during the course of the Savings Arrangement, alter the exchange rate fixed at
the Invitation Date to take account of general currency movements and may permit the
Nominated Currency amount of the Monthly Contribution to be altered so that, calculated by
reference to such new exchange rate, it is equivalent to the Original Sterling Amount.

	4.7	 	Unless the provisions in rule 2.10 apply, an Option shall be granted to an Eligible Employee
over such number of Shares (N) as is calculated according to the following formula and any
fraction of a Share shall be rounded down to the nearest whole Share:

	 	 	 
	N =

	 	MC x Y
	 

	 	EP

Where:

MC represents the Monthly Contribution converted to Sterling which the Eligible Employee has elected to save under his Savings Arrangement;

Y represents such number of months as the Board may determine prior to the relevant Invitation Date (the Option Period);

EP represents the Exercise Price.

4.8

	 	(a)	 	Save as provided in rules 4.9(b), (d) and (e) and rule 5, an Option may only
be exercised on or within 30 days (or such shorter period as the Board may specify)
after the Maturity Date relating to it (the Exercise Period).
	 
	 	(b)	 	An Option shall lapse upon the Option Holder ceasing to be an Eligible
Employee except where his so ceasing is by reason of:-

	 	(i)	 	his retirement on reaching the Specified Age or such other
age at which he is bound to retire in accordance with the terms of his
employment; or
	 
	 	(ii)	 	injury, disability or Redundancy or his office or
employment either being in a company which ceases to be a Subsidiary or
relating to a business or part of a business which is transferred to a
person which is neither a Subsidiary nor a Member of the Group

in any of which circumstances the Option may be exercised at any time during a period of up to
six months from the date on which he so ceases to be a an Eligible Employee notwithstanding that
the Maturity Date shall not have occurred PROVIDED that if an Option which has become exercisable

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by virtue of this rule 4.8(b) has not been exercised prior to or on the Maturity Date the Option
will lapse.

	 	(c)	 	For the purposes of rule 4.9(b) above and rule 5 below (but for no other purpose):-

	 	(i)	 	an Option Holder shall not be regarded as having ceased to be
an Eligible Employee by reason of:-

	 	(aa)	 	his being or becoming employed by a company
which ceases to be or is not a company which participates in the Plan
but is nevertheless under the Control of the Company; or

	 	(bb)	 	his ceasing to be employed full-time but continuing to be employed on a part-time
basis; and

	 	(ii)	 	an Option Holder shall be regarded as ceasing to be an
Eligible Employee when he holds no employment with the Company or any company
Controlled by the Company.

	 	(d)	 	In the event of the death of an Option Holder prior to the Maturity Date the
Option may be exercised by his personal representatives at any time during a period
of up to three months commencing on the date of his death (but not later) and the
personal representatives shall be entitled to do so notwithstanding that the Maturity
Date has not occurred PROVIDED that if an Option which has become exercisable by
virtue of this rule 4.8(d) has not been exercised prior to or on the Maturity Date
the Option will lapse.
	 
	 	(e)	 	An Option Holder who reaches the Specified Age prior to the Maturity Date
but continues to hold the office or employment by virtue of which he is eligible to
participate in the Plan may exercise the Option within a period of up to six months
after the date of his reaching the Specified Age PROVIDED that if an Option which has
become exercisable by virtue of this rule 4.8(e) has not been exercised prior to or
on the Maturity Date the Option will lapse.
	 
	 	(f)	 	If an Option becomes exercisable under any provision of the Plan before the
Maturity Date it shall be exercisable only over such number of Shares (S) as is
calculated according to the following formula and any fraction of a Share shall be
rounded down to the nearest whole Share:

	 	 	Where:

Z represents such whole number of months during the Option Period as the
Participant has remained an Eligible Employee;

	 	 	 	X represents such number of months in the Option Period;

N represents the total number of Shares over which the Option is granted (subject
to any adjustments made pursuant to rule 6).

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	 	S =
	 	 Z x N
	 

	 	 	 	X

	 	(g)	 	An Option shall lapse immediately after it is first exercised
notwithstanding that it shall not have been exercised in respect of the maximum
number of Shares over which the Option was granted.

	4.9	 	Every Option granted hereunder shall be personal to the Option Holder and, except to the
extent necessary to enable a personal representative to exercise the Option following the
death of an Option Holder, neither the Option nor the benefit thereof may be transferred,
assigned, charged or otherwise alienated.

TAKE-OVER AND LIQUIDATION

	5.1	 	If any person obtains Control of the Company as a result of making:-

	 	(a)	 	a general offer to acquire the whole of the issued 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 the shares in the Company which are of the
same class as the Shares;

then any Option subject to rule 5.4 may below be exercised within six months of the time when the
person making the offer has obtained Control of the Company and any condition subject to which the
offer is made has been satisfied.

	5.2	 	If under Section 425 of the Companies Act 1985 the Court sanctions a compromise or
arrangement proposed for the purposes of or in connection with a scheme for the
reconstruction of the Company or its amalgamation with any other company or companies, any
Option may subject to rule 5.4 below be exercised within six months of the Court sanctioning
the compromise or arrangement.

	5.3	 	If any person becomes bound or entitled to acquire Shares in the Company under Sections 428
to 430F of the Companies Act 1985 any Option may subject to rule 5.4 below be exercised at
any time when that person remains so bound or entitled.

	5.4	 	If as a result of the events specified in rules 5.1 or 5.2 above a company has obtained
Control of the Company, or if a person has become bound or entitled as mentioned in rule 5.3
above, any Option Holder may by agreement with that other company or person (the Acquiring
Company) within the Appropriate Period as defined in paragraph 15(2) of Schedule 9 to the
Taxes Act release any Option of his in consideration of the grant of a new option (the New
Option) which satisfies the following conditions -

	 	(a)	 	the New Option shall be over shares in the Acquiring Company or another
company which satisfies paragraph (b) or (c) of paragraph 10 of Schedule 9 to the
Taxes Act in relation to the Acquiring Company and shall satisfy the conditions
specified in paragraphs 10 to 14 inclusive of Schedule 9 to the Taxes Act;

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	 	(b)	 	the New Option shall be a right to acquire such number of such shares in the
Acquiring Company (or such other company) as shall have on the grant of the New
Option an aggregate market value equal to the aggregate market value of the Shares
subject to the Option immediately before its release;
	 
	 	(c)	 	the New Option shall have an Exercise Price such that the aggregate price
payable on complete exercise equals the aggregate price which would have been
payable on complete exercise of the Option; and
	 
	 	(d)	 	the New Option shall be otherwise identical in terms to the Option

and the New Option shall, for all other purposes of this Plan, be treated as having been acquired
at the same time as fee Option in consideration of the release of which it is granted. With effect
from the release of any Option pursuant to rule 5, rules 6, and 4, this rule 5 and rule 7 of these
Rules shall in relation to the new Option be construed as if references therein to the Company
were references to the Acquiring Company, or, as the case may be, such other company and all the
Rules (other than rules 2 to 4 inclusive) shall in relation to the New Option be construed as if
references therein to Shares were references to shares in the Acquiring Company or, as the case
may be, such other company in respect of whose shares the New Option is granted.

	5.5	 	If the Company passes a resolution for voluntary winding-up, any Option may be exercised
within six months of the passing of the resolution.

	5.6	 	For the purposes of this rule 5 other than rule 5.4 above a person shall be deemed to have
obtained Control of a company if he and others acting in concert with him have together
obtained Control of it.

	5.7	 	The exercise of an Option pursuant to the preceding provisions of this rule 5 shall be
subject to the provisions of rule 4 above.

5.8 Any Option shall lapse if:-

	 	(a)	 	it shall not have been exercised by the expiry of the earliest of any of the
time limits for exercise set out in this rule 5; and
	 
	 	(b)	 	no agreement for fee release of fee Option shall have been entered into by
the expiry of fee first Appropriate Period to commence pursuant to rule 5.4 above.

ALTERATIONS OF SHARE CAPITAL

	6.	 	In the event of any alteration in fee issued share capital of the Company, whether by way of
capitalisation of profits or reserves or by way of rights or any consolidation or
subdivision or reduction of capital, then the number of Shares subject to any Option and
the Exercise Price may be adjusted by the Board in such manner and with effect from such
date as the Board may determine to be appropriate (including retrospective adjustments
where appropriate) provided always that:-

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	 	(a)	 	no such adjustment shall take effect until it has been referred to the Auditors
and the Auditors have certified in writing to the Board that the adjustment is fair
and reasonable in their opinion;
	 
	 	(b)	 	nothing in this rule 6 shall oblige the Board to take any action or incur
any net expense to facilitate any such adjustment; and
	 
	 	(c)	 	in the case of an Option to subscribe for Shares, the Exercise Price shall
not be adjusted below the nominal value of a Share.

ALLOTMENT AND LISTING

	7.1	 	Subject to receipt of the appropriate remittance, Shares to be issued pursuant to the
exercise of an Option will be allotted not later than thirty days after the exercise of the
Option and will rank pari passu in all respects with the Shares in issue on the date of
exercise save that they will not rank for any dividend or other distribution paid or made by
reference to a record date prior to the date of exercise of the Option. Shares to be
transferred pursuant to the exercise of an Option shall be transferred within thirty days
after exercise of the Option. In the case of an Option under which Shares are to be
transferred, the Company shall receive the Exercise Price as agent for the person holding the
Shares which are to be transferred to the Option Holder.

	7.2	 	If the Shares are listed on the London Stock Exchange at the date of allotment of any Shares
pursuant to the Plan the Company will apply to the London Stock Exchange for permission for
such Shares so allotted to be admitted to the Official List. An application may be postponed
at the discretion of the Board until application can be made in respect of such number of
Shares as the Board considers appropriate.

TERMINATION OF EMPLOYMENT

	8.	 	The rights and obligations of an Option Holder under the terms and conditions of his office
or employment shall not be affected by his participation in the Plan or any right he may
have to participate in the Plan. An individual who participates in the Plan waives all and
any rights to compensation or damages in consequence of the termination of his office or
employment with any company for any reason whatsoever insofar as those rights arise, or
may arise, from his ceasing to have rights under or be entitled to exercise any Option
under the Plan as a result of such termination or from the loss or diminution in value of
such rights or entitlement.

ADMINISTRATION OF THE PLAN

	9.1	 	The Board may make and vary such regulations (not being inconsistent with the Plan) as it
thinks fit for the administration and implementation of the Plan. The Board’s decision on
any matter concerning the Plan or its interpretation (other than a matter to be certified by
the Auditors) shall be final and binding.

	9.2	 	The Board shall be entitled by resolution to amend all or any of the provisions of the Plan
as the Board thinks fit except that no alteration shall be made:-

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	 	(a)	 	to the advantage of Option Holders or Eligible Employees without the prior
sanction of an ordinary resolution of the Company in general meeting, except for minor
amendments 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 Option Holders in the Plan or for any Member of the Group; or
	 
	 	(b)	 	to any rights already accrued to any Option Holder which would be to the
disadvantage of such Option Holder, without the prior consent of such Option
Holder.

	9.3	 	Written notice of any alteration made in accordance with
paragraph 9.2 shall be given to all
Option Holders affected by such alteration.
	 
	9.4	 	The Company shall keep available sufficient unissued Shares in the capital of the Company
(including for this purpose Shares to be issued directly to an Option Holder on the
exercise
of his Option and Shares to be issued to a person who will in turn transfer such Shares to
an
Option Holder on the exercise of his Option) to satisfy the exercise in full of all Options
for
the time being remaining capable of being exercised.
	 
	9.5	 	Option Holders may be sent copies of any document having a material effect on their rights
at the same time as such document is sent to holders of Shares.
	 
	9.6	 	The provisions of the Company’s Articles of Association for the time being in force 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 to Option Holders.

TERMINATION OF THE PLAN

	10.	 	The Plan may be terminated at any time by the Board or by the Company in general meeting but
in any event shall terminate on the tenth anniversary of the Adoption Date and on such
termination no further Options shall be granted, but the subsisting rights of Option Holders
shall not be affected by such termination.

GENERAL

	11.1	 	Any Member of the Group may provide money to the trustees of
any trust or any other person to enable them or him to acquire Shares to be held for the purposes of the Plan, or
enter into any guarantee or indemnity for those purposes, to the extent not prohibited by
section 151 of the Companies Act 1985.
	 
	11.2	 	These Rules shall be governed by and construed in accordance with the laws of England.

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SCHEDULE I — FRANCE

This Schedule 1 is supplemental to the AMVESCAP International Sharesave Scheme (the “Scheme”)
which was established pursuant to a resolution of the Company in a General Meeting on 8 May 1997.

The purpose of this Schedule 1 is to specify, in accordance with articles 208-1 to 208-8-2 of the
French Company Law n° 66-537 dated 24 July 1966 as amended (the “Law of 1966”), the terms and
conditions under which Options may be granted to Eligible Employees who are French residents for
tax purposes.

Words or phrases defined in the Scheme shall bear the same meaning in this Schedule 1 except as
otherwise provided. The rules of the Scheme shall be interpreted so as to comply with the Law of
1966 and in particular be modified or varied as set out below. For the purpose of implementation of
the Scheme in France, provisions of Schedule 1 shall supersede any provisions of the Scheme:

	1.	 	The definition of “Subsidiary” shall be replaced as
follows: “means a company which is under the Control of the Company and a subsidiary of the Company within the meaning of
Section 736 of the Companies Act 1985 and being a company in which the Company holds,
directly or indirectly, at least 10% of the share capital”;
	 
	2.	 	In accordance with article 208-6, paragraph 1 of the Law of 1966, the maximum number of
shares which may be the subject of Options granted under the Scheme shall not exceed one
third of the issued ordinary share capital of the Company from time to time;
	 
	3.	 	No Option may be granted to any French or foreign Eligible Employee holding shares
representing 10% or more of the Company’s issued ordinary share capital;
	 
	4.	 	In accordance with article 208-1, paragraph 4 of the Law of 1966, no Option may be granted
during the period of twenty dealing days on the London Stock Exchange immediately
following the payment of any cash dividend or any issue of ordinary shares in lieu of the
payment of a cash dividend (that is a stock dividend);
	 
	5.	 	Read 3.4 as follows: “The options are granted
(i) for a pre-determined period (ii) at a pre-determined price irrespective of the share price at the date of exercise of the option and
(iii)
may not be withdrawn or altered except for price adjustments as provided under item 9 of
Schedule 1. The period during which the Board may grant the options to subscribe (as
opposed to options to purchase shares) following the shareholders’ resolution dated 8 May
1997 to set up the present Scheme is of 5 years; no Invitation can be sent after 7 May
2022.”
	 
	6.	 	Upon the death of an Option Holder all Options held by the latter at the date of death shall
remain exercisable for a period of six months commencing on the date of his death, by his
heirs in accordance with article 208-7 of the Law of 1966.
	 
	7.	 	All shares allotted under the Scheme shall be registered in the share register and share
certificates shall be issued to the Option Holder for the shares in respect of which the
Option
has been exercised;

- 14 - 

 

	8.	 	Add (d) under Rule 6: being understood that the Exercise Price may only be adjusted in
accordance with French law upon the occurrence of the events and in a manner provided for
under section 208-5 of the Law of 1966 and the related provisions of the Decree of 23
March 1967”;
	 
	9.	 	Add after rule 9.2(b): “9.2(c) and in any case in accordance with the Law of 1966 and any
applicable regulation thereto.”;
	 
	 	 	Add at the end of Rule 11.2 “except where the laws of France are applicable”.

- 15 - 

 

SCHEDULE II — JAPAN

This
Schedule II is supplemental to the AMVESCAP International Sharesave Plan (the Plan) which was
established pursuant to a resolution of the Company in General Meeting on 8 May 1997.

This Schedule II sets out the rules of the Plan, in its application to any Option granted or to
be granted to a person who is resident for tax purposes in Japan and words or phrases defined
in the Plan shall bear the same meaning in this Schedule II. The said rules shall be the
Rules as modified or varied as set out below:

The Rule shall be amended by the addition of Rule 12 as follows:-

	 	12.	 	Notwithstanding any other provisions in the Rules, if the aggregate amount of the
issue or sale price of the Shares issuable or deliverable to residents in Japan
under the Plan, any other similar Plan of the Company or otherwise within the
previous two years, would be the equivalent of ¥500 million (or any other
threshold from time to time determined by the Board (the Threshold)) or more,
the Board may in its sole discretion determine that only Options over Shares
having an aggregate issue or sale price less than the Threshold may be
exercisable during the Exercise Period.
	 
	 	 	 	Any unexercised portions of such Options shall be exercisable for a period of
six months, on a date after the expiry of the Exercise Period when the aggregate
amount of the issue or sale price of the Shares issuable or deliverable to
residents in Japan under the Plan, any other similar Plan of the Company or
otherwise within the previous two years would be less than the Threshold.
	 
	 	 	 	Any reduction of the number of Shares over which an Option Holder may exercise
an option during the Exercise Period shall be made pro-rata (as nearly as may
be) to the total number of Shares under Option held by each Option Holder.

- 16 - 

 

SCHEDULE III — US

This
Schedule III is supplemental to the AMVESCAP International
Sharesave Plan (the Plan) which
was established pursuant to a resolution of the Company in General
Meeting on 8 May 1997.

This Schedule III sets out the rules of the Plan in its application to any right granted to a
person who is resident for tax purposes in the US and words or phrases defined in the Plan
shall bear the same meaning in this Schedule III except as otherwise provided. The said
rules shall be the Rules as modified or varied as set out below:

1. The Definition of Eligible Employee shall be replaced with:-

“Eligible Employees means each individual who is employed by a company in the Group and resides in
the United States eligible to participate in the Plan if such employee:

	 	(a)	 	has completed such period of employment with one or more companies included
in the Group (not exceeding two years) prior to the Invitation Date as the Board may
determine; and
	 
	 	(b)	 	does not own (and will not own immediately after any Option is granted to
such employee under the Plan), within the meaning of section 423(b)(3) and 425(d) of
the Internal Revenue Code of 1986, as amended (the Code), stock possessing five per
cent or more of the total combined voting power or value of all classes of stock of
the Company or of any other corporation included in the Group,

	 	 	 	unless he had given, or been given, notice to terminate his contract of employment either
before the Invitation Date or the Date of Grant”.

	 	2.	 	Rule 2.6 shall be replaced with the following:
	 
	 	2.6	 	For the purposes of rule 2.5(b), the Minimum Price means such
amount as is stipulated by the Board at the Invitation Date being an amount not less than 85
per cent of the middle market quotation of a Share, as derived from the Daily
Official List of the London Stock Exchange, for the Dealing Day immediately
preceding the Invitation Date.
	 
	 	3.	 	Rule 3 shall be amended by the addition of Rule 3.5 as follows:
	 
	 	3.5	 	“No Eligible Employee shall be permitted to purchase Shares under the Plan
and any other share purchase plan of any member of the Group intended to comply with
the requirements of section 423 of the Code, to the extent that the aggregate fair
market value of such Shares subject to outstanding Options in any calendar year that
have been granted under the Plan and any such other plan exceeds $25,000. For the
purposes of this rule 3.5, the fair market value of a Share shall be determined as
of the Date of Grant of the related Option on the basis of the middle market
quotation of a Share, as derived from the Daily Official List of the London Stock
Exchange, for the Dealing Day immediately preceding the Invitation Date”.

- 17 - 

 

	 	4.	 	Rule 4.8 shall be amended so that an Option Holder ceasing to be an Eligible
Employee for one of the reasons specified shall only have a maximum of 3 months from the
date he ceases to be an Eligible Employee to exercise an Option, by substituting the word
“three” for the word “six” in line 12 which commences with the words “in any of which
circumstances”.

- 18 - 

 

SCHEDULE
IV — HONG KONG

This Schedule IV is supplemental to the AMVESCAP International Sharesave Plan (the Plan) which was
established pursuant to a resolution of the Company in General Meeting on 8 May 1997.

This Schedule IV sets out the rules of the Plan in its application to any right granted to a
person who is resident for tax purposes in Hong Kong and words or phrases defined in the Plan
shall bear the same meaning in this Schedule IV except as otherwise provided. The said rules
shall be the Rules as modified or varied as set out below:

The definition of “Subsidiary” shall be replaced with:

	 	 	 	Subsidiary means a company which is under the Control of the Company and is a
subsidiary of the Company within the meaning of Section 736 of the Companies Act
1985 and is deemed to be related to the Company by virtue of Section 4 of the
Securities Ordinance (Cap. 333 of the Laws of Hong Kong).

- 19 - 

 

SCHEDULE V - CANADA

This Schedule V is supplemental to the AMVESCAP International Sharesave Scheme (the “Scheme”) which
was established pursuant to a resolution of the Company in General Meeting on 8 May 1997.

This Schedule V sets out the rules of the Scheme in its application to any right granted to a
person who is resident in Canada and words or phrases defined in the Scheme shall bear the same
meaning in this Schedule V except as otherwise provided. The said rules shall be the Rules as
modified or varied as set out below:

The following provision is added to the end of Rule 3.3(b):

	 	 	 	 	 	 	 
	 

	 	“;or
	 	(c)
	 	the aggregate number of Shares that could be issued on the
exercise of that Option plus any other Shares held by residents of any province or
territory in Canada would exceed 10% of the outstanding Shares and the number of
residents of any province or territory in Canada holding Shares would exceed 10% of
the total number of Shareholders.”

- 20 -EX-10.14 GLOBAL PARTNER AGREEMENT/LOREN M. STARR

 

EXHIBIT 10.14

Global Partner Agreement

Mr. Loren M. Starr

13 Covington Drive

Englewood CO 80113

Dear Loren:

     AMVESCAP PLC (the “Company”), wishes to employ you as a Global Partner under the terms and
conditions set forth in this letter. The term “Global Partner” is used throughout the AMVESCAP
Group to refer to the most senior group of officers and employees. The purpose of this letter is
to articulate the terms and conditions of your employment.

     It is important to note at the outset that the Company consider you an important part of its
continued success. Further, please note that under the terms of this letter agreement, which is a
binding contract, neither the Company nor you have any right to terminate the employment
relationship except as set forth below.

     1. Duties Of Employment

     You agree to perform the duties assigned to you by the Company as more specifically stated
in an attachment to this letter. The attachment may be modified in the future if you and the
Company agree in writing. You understand and agree that during your employment relationship with
the Company, you are not allowed, without proper prior approval, to perform any business
activities for any person or entity other than the Company or another company that is part of the
AMVESCAP Group. Of course, if you obtain the Company’s prior written approval, you may perform
other business activities.

     It is your obligation to comply with all Company policies and procedures, including those
set forth in any Code of Ethics and other materials distributed by the Company to its employees.
Further, you agree to comply with all applicable rules and regulations that pertain to the
Company’s business.

     As a Global Partner you have important duties to the Company: the duty to refrain from
dealing in your self interest above that of the Company’s, the duty to disclose any information
that indicates that you may be exposed to a conflict of interests, the duty of loyalty, and the
duty to refrain from using the Company’s business opportunities for your own benefit. These
fiduciary obligations and others arise because of the unique trust and confidence the Company
places in you as a Global Partner.

     2. Compensation

 

 

     Your annual salary is set forth in an attachment to this letter. You will also receive certain
bonuses and stock awards as approved from time to time by the Company. The attachment may be
modified in the future as agreed by you and the Company in writing.

     3. Term

     The term of your employment relationship with the Company shall be for one year from the date
of your signature on this letter. This term will automatically renew at the end of the initial
term for another year and will continue to renew every year, unless your employment is terminated
in a manner specified below. In no event will the term of your employment relationship with the
Company be less than the unexpired period of any notice of intent to terminate given as set forth
below. Your employment can only be terminated as specifically set forth below.

          A. Termination Effective After Expiration of Notice Period

     Either you or the Company may terminate the employment relationship at any time during the
initial term or any renewal, upon 6* (see Note) months written notice to the other party.
Notice of intent to terminate will be considered given upon mailing or actual receipt, whichever
occurs first. Whether you or the Company give the notice of termination, your employment will
continue for the entire notice period. The effective date of the termination of the employment
relationship will be the last day of the notice period.

[Note: The Company is willing to agree to a minimum four month notice period, but will accept up
to twelve months as a reasonable notice period. Please fill in and initial the notice period that
you desire. If you do not designate a number of months in the blank or if you designate a number
less than four months, you are agreeing to the default notice period of four months.]

          B. Termination by Mutual Agreement

     You and the Company can, effective immediately, terminate the employment relationship without
cause or notice, but such a mutual termination will only be effective if you and the Company both
agree to the termination in writing. Such an agreement must be signed by the Chief Executive
Officer of the Company to be effective.

          C. Termination with Cause

     Your employment may be terminated effective immediately upon written notice if the Company
believes in good faith that you engaged in the following conduct:

	 	(1)	 	After written notice, any continuing violation of this agreement or Company
policies or procedures;
	 
	 	(2)	 	Your conviction of committing a criminal act;
	 
	 	(3)	 	Any violation of law or regulation related to the business of the Company or
affecting your ability to perform your duties;
	 
	 	(4)	 	Your bankruptcy or insolvency.

-2-

 

     You may terminate your employment effective immediately if the Company, after
written notice, has engaged in any continuing violation of this letter agreement and
has not cured such violation within a reasonable period of time.

          D. Termination Due to Death or Disability

     In the event of your death, or disability to the extent that you cannot perform
the essential functions of your position with reasonable accommodation, your
employment will be terminated effective on the last day of the month that such death
or disability occurs. We mutually recognize that the Company has a disability plan
that is separate from this letter agreement.

     4. Confidential Information

     A critical aspect of your position is your access to trade secret, proprietary,
and confidential information. For example, your knowledge of the exact amounts and
holdings of Company-related investment positions is confidential. While some of that
information may eventually be made public, the information is extremely sensitive and
is to be treated as confidential until it is released. Likewise, computer models and
programs developed by the Company or purchased by it are proprietary and
confidential. Other information the Company possesses as trade secrets or
confidential information include its marketing strategies, marketing plans,
compensation arrangements, benefit plans, and ideas and inventions of its employees.

     These are simply examples of the types of information the Company considers
trade secret and/or confidential. As time passes, the Company will no doubt develop
new categories of information it considers trade secret and/or confidential. As this
occurs, the Company will identify such new categories of information and remind you
of your obligation to treat it as confidential. The importance of all of the types
of information identified here is that the Company’s competitors do not have
permitted access to this information and are thus unable to use it to compete with
the Company. Accordingly, these types of information create a competitive advantage
for the Company and are economically valuable. Thus, you agree not to disclose or
use any of the Company’s trade secret and/or confidential information for your own
benefit or the benefit of anyone other than the Company, during your employment or
for six (6) months after the effective date of the termination of your employment
relationship with the Company.

     5. Company Employees And Customers

     You agree that, in the event of the termination of the employment relationship
between you and the Company, you will not solicit or hire any Company employees for
a period of six (6) months after the effective date of the termination of your
employment relationship with the Company. Further, you agree that you will not
solicit the business relationships you developed or acquired while working for the
Company or another company affiliated with the AMVESCAP Group for a period of six
(6) months after the effective date of the termination of your employment.

-3-

 

     6. Inventions And Ideas

     Since the Company is paying you for your time and efforts, you agree that all information,
ideas, and inventions you develop while employed by the Company related in any way to the Company’s
business, are the sole property of the Company. This includes all investment models, processes, and
methodologies you develop while employed by the Company. Indeed, one of the reasons for your
employment is the creation of such ideas. This information is confidential and trade secret
information as discussed above. You understand that the Company may seek to patent or to obtain
trademark or copyright protection related to such information, ideas, and inventions, and that, if
necessary, you will assign any interest you may have in such information, ideas, and inventions you
develop to the Company.

     7. Return of Company Property

     Upon the termination of your employment, you agree to return all property of the Company. To
the extent such property is information of which you have detailed knowledge but no electronic or
other documents containing such information, you agree to itemize such information in writing for
the Company prior to the effective date of the termination of your employment.

     8. Assignment

     You agree that this letter agreement may be assigned to any other entities in the AMVESCAP
Group, or to any successor company by acquisition of either the Company’s stock or its assets. In
the case of such an assignment by the Company, you understand and agree that you would continue to
be bound by this letter agreement. No such assignment, without your consent, shall require you to
change your duties or to move from your principal residence.

     9. Choice of Law and Forum

     We agree that, in the event of a disagreement between you and the Company about any aspect of
your employment with the Company or this Letter agreement, Georgia law will govern any litigation
or proceeding brought by either party. You also agree that any litigation or proceeding shall be
brought in Fulton County, Germanyeorgia, in either state or federal court, as appropriate.

     10. Notice

     We agree that any notice that is to be given under this letter agreement is properly given
when delivered in person, by certified mail, or by over night delivery such as Federal Express.

     11. Prior Agreements

     This letter agreement extinguishes and replaces any previous written employment agreement
between you and the Company.

-4-

 

     We are very grateful for the significant contributions you are making to the
Company and look forward to working with you in the future.

	 	 	 	 	 
	 	Sincerely,

AMVESCAP PLC

 	 
	 	By:  	/s/ Martin L. Flanagan
 	 
	 	 	Martin L. Flanagan 	 
	 

Accepted Nov. 10, 2005

                    {Date}

	 	 	 	 	 
	 	 	 
	 	/s/ Loren M. Starr
 	 
	 	Global Partner 	 

-5-

 

	 	 	 	 	 

GLOBAL PARTNER AGREEMENT

ATTACHMENT

 

Name of Global Partner: Loren M. Starr

Title: Vice President and Chief Financial Officer

Company: AMVESCAP PLC

Statement of Responsibilities:

As Senior Vice President and Chief Financial Officer, you will be responsible for
directing AMVESCAP’s financial activities, including all Accounting, Treasury and
Finance matters. You will direct and coordinate activities with accounting firms and
regulatory agencies concerned with the organization’s financial position and
financial disclosures.

Base Compensation Effective October 12, 2005:

$450,000.00 USD

	 	 	 	 	 	 
	 	 	 
	 	ACCEPTED:  	/s/ Loren M. Starr
 	Nov. 10, 2005
	 	 	Loren M. Starr 	Date 
	 	 	 	 
	 

	 	 	 	 	 
	 	/s/ Martin L. Flanagan
 	 
	 	Martin L. Flanagan  	 
	 	AMVESCAP PLC

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