Document:

Exhibit 4.3

 

 

5 December 2018

 

Barclays

European Loans Agency

1 Churchill Place

London

E14 5HP

 

For the attention of Sarah Oldfield, European Loans Agency

 

Vodafone Group Plc - €3.86bn (as increased to €4.01bn) 5+1+1 Revolving Credit Facility dated on 11 January 2018 (“RCF”)

 

Included within the RCF referenced above is an Extension Option (Section 6) whereby Vodafone may give notice to the Facility Agent not more than 60 days and not less than 30 days before the first anniversary that it wishes to request that the Final Maturity Date be extended for a further period of one year i.e. extend the current Maturity Date of Wednesday 11 January 2023 to Thursday 11 January 2024.

 

Please accept this letter as confirmation that Vodafone wishes to apply for such a one year extension in accordance with Section 6 of the RCF. In your role as Facility Agent please could you communicate this request to all Lenders and collate the Lender responses by Wednesday 2 January 2019.

 

If you have any questions or require clarification please do not hesitate to contact Neil Garrod, Vodafone Group Treasury Director.

 

Yours faithfully,

 

 

	
/s/ Margherita Della Valle
    	
 
    	
/s/ Neil Garrod
    
	
Margherita Della Valle
    	
 
    	
Neil Garrod
    
	
 
    	
 
    	
 
    
	
Group Chief Financial Officer
    	
 
    	
Group Treasury Director
    

 

 

	
Vodafone Group Plc
    	
T +44(0) 1635 33251
    
	
1 Kingdom Street,   Paddington Central
    	
F +44(0) 1635 238 080
    
	
London, W2 6BY, United   Kingdom
    	
vodafone.com
    

 

Registered office: Vodafone House, The Connection, Newbury, Berkshire, RG14 2FN, United Kingdom, Registered in England No. 01833679Exhibit 4.4

 

LENDER ACCESSION AGREEMENT

 

To:          Barclays Bank PLC as Agent

 

From:     Raiffeisen Bank International AG

 

Vienna, 12 July 2018

 

Vodafone Group Plc EUR 3,860,000,000 (as increased to EUR 4,010,000,000) Revolving Credit

Agreement

dated 28 March 2014 (as amended and/or restated from time to time) (the “Credit Agreement”)

 

Terms used herein which are defined in the Credit Agreement shall have the same meaning herein as in the Credit Agreement.

 

We refer to Clause 2.8 (Incremental revolving credit facility).

 

We, Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Vienna, agree to become party to and to be bound by the terms of the Credit Agreement as an Additional Lender in accordance with Clause 2.8 (Incremental revolving credit facility) with effect on and from 1 August 2018.

 

Our Revolving Credit Commitment is EUR 80.000.000,- (EUR eighty million).

 

We confirm to each Finance Party that we:

 

(a)                                 have made our own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in the Credit Agreement and have not relied exclusively on any information provided to us by a Finance Party in connection with any Finance Document; and

 

(b)                                 will continue to make our own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Credit Agreement or any Commitment is in force.

 

The Facility Office and address for notices of the Additional Lender for the purposes of Clause 33.2 (Addresses for notices) is:

 

Raiffeisen Bank International AG

Am Stadtpark 9

A-1030 Wien

 

attn. Mr. Konstantin Soustal, e-mail: konstantin.soustal@rbinternational.com and

Ms. Ingrid Rosenwirth, e-mail: ingrid.rosenwirth@rbinternational.com

 

 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

 

	
Raiffeisen Bank   International AG
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Peter STRAUBINGER
    	
 
    	
/s/ Ingrid ROSENWIRTH
    
	
 
    	
Peter STRAUBINGER
    	
 
    	
Ingrid ROSENWIRTH
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
BARCLAYS BANK PLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	

    	
 
    	
BRANCH MEI
   GB1L184629
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
VODAFONE GROUP PLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Nick Read
    	
 
    	
 
    
	
 
    	
Nick ReadExhibit 4.8

 

LENDER ACCESSION AGREEMENT

 

To:          The Royal Bank of Scotland plc as Agent

 

From:     Raiffeisen Bank International AG

 

Vienna, 12 July 2018

 

Vodafone Group Plc USD 3,935,000,000,- (as increased to USD 4,090,000,000) Revolving Credit

Agreement dated 27 February 2015 (the “Credit Agreement”)

 

Terms used herein which are defined in the Credit Agreement shall have the same meaning herein as in the Credit Agreement.

 

We refer to Clause 2.8 (Additional Lenders).

 

We, Raiffeisen Bank International AG, Am Stadtpark 9, A-1030 Vienna, agree to become party to and to be bound by the terms of the Credit Agreement as an Additional Lender in accordance with Clause 2.8 (Additional Lenders) with effect on and from 1 August 2018.

 

Our Revolving Credit Commitment is USD 75.000.000.-.

 

We confirm to each Finance Party that we:

 

(a)                                 have made our own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in the Credit Agreement and have not relied exclusively on any information provided to us by a Finance Party in connection with any Finance Document; and

 

(b)                                 will continue to make our own independent appraisal of the creditworthiness of each Obligor and its related entities while any amount is or may be outstanding under the Credit Agreement or any Commitment is in force.

 

The Facility Office and address for notices of the Additional Lender for the purposes of Clause 33.2 (Addresses for notices) is:

 

Raiffeisen Bank International AG

Am Stadtpark 9

A-1030 Vienna

 

attn. Mr. Konstantin Soustal, e-mail: konstantin.soustal@rbinternational.com and

Ms. Ingrid Rosenwirth, e-mail: ingrid.rosenwirth@rbinternational.com

 

 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

 

 

	
Raiffeisen Bank   International AG
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Peter STRAUBINGER
    	
 
    	
/s/ Ingrid ROSENWIRTH
    
	
 
    	
Peter STRAUBINGER
    	
 
    	
Ingrid ROSENWIRTH
    
	
 
    	
 
    	
 
    
	
THE ROYAL BANK OF   SCOTLAND PLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Jamie Miller
    	
 
    	
/s/ Manuel Caseirs
    
	
 
    	
Jamie Miller
    	
 
    	
Manuel Caseirs
    
	
 
    	
 
    	
 
    
	
VODAFONE GROUP PLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Nick Read
    	
 
    	
 
    
	
 
    	
Nick ReadExhibit 4.10

 

Vodafone Group Plc

 

RULES OF THE VODAFONE GLOBAL INCENTIVE PLAN 2014

 

	
Shareholders’ Approval:
    	
29 July 2014
    
	
 
    	
 
    
	
Directors’ Adoption:
    	
3 November 2014
    
	
 
    	
 
    
	
Expiry Date:
    	
28 July 2024
    
	
 
    	
 
    
	
Updated:
    	
2 November 2015
    
	
 
    	
9 May 2016
    
	
 
    	
3 March 2017
    
	
 
    	
 
    
	
 
    	
28 July 2017
    
	
 
    	
22 January 2018
    
	
 
    	
26 July 2018
    

 

 

Table of Contents

 

	
Contents
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1
    	
Introduction
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2
    	
Definitions
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
3
    	
Granting Awards
    	
 
    	
4
    
	
 
    	
 
    	
 
    	
 
    
	
4
    	
Terms of Awards to be   set by Grantor
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
5
    	
Form of Awards
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
6
    	
No transfer of Awards
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
7
    	
Limits on the use of   newly issued shares and treasury shares
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
8
    	
Normal Vesting of   Awards
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
9
    	
Holding Period
    	
 
    	
8
    
	
 
    	
 
    	
 
    	
 
    
	
10
    	
Termination of   Employment and death
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
11
    	
Malus and clawback
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
12
    	
Takeovers and   restructurings
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
13
    	
Overseas transfer
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
14
    	
Exchange of Awards
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
15
    	
Tax
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
16
    	
General
    	
 
    	
16
    
	
 
    	
 
    	
 
    	
 
    
	
17
    	
Changing the Plan and   termination
    	
 
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
18
    	
Governing law and   jurisdiction
    	
 
    	
19
    
	
 
    	
 
    	
 
    	
 
    
	
19
    	
Special terms for   Forfeitable Shares
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
20
    	
Special terms for   Options
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
21
    	
Special terms for   Conditional Awards
    	
 
    	
26
    
	
 
    	
 
    	
 
    	
 
    
	
22
    	
Special provisions for   Directors
    	
 
    	
28
    

 

i

 

General terms

 

	
 
    	
 
    	
1                                         Introduction

 

This   Plan is intended to give Members of the Group flexibility to grant to   eligible employees a number of different types of awards — which would   normally be granted under different plans — under one consistent set of   rules.

 

An   Award under the Plan can take the form of:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
·                                          Forfeitable Shares — which are Shares   transferred to the Participant at the time of Award, on the basis that they   must be given back if the Award lapses.

 

·                                          a Nil-cost Option — which is a right to   buy Shares on Vesting for nothing or a nominal amount.

 

·                                          a Market Value Option — which is a right   to buy Shares at a price set by reference to the market value of the Shares   at the time of Award. Because the value of these options depends on growth in   the share price, these can be exercised for longer than Nil-Cost Options.

 

·                                          a Conditional Award — which is a right to   be given Shares on Vesting.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Grant   and vesting of all types of Award work in similar ways but there are some   differences in the mechanics of how they are granted and what happens after   they Vest. These are set out in the separate sections for each type of Award.

 

Rule 22   sets out special provisions which apply to Directors of the Company.

 

The   schedules allow for grants of particular types of Awards in a way which   attracts favourable tax treatment or complies with special rules in   various countries.

 

This introduction does not form part of the rules.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
2                                         Definitions

 

In   these rules:

 
    
	
 
    	
 
    	
“Acquiring Company” means a person who   obtains or has Control of the Company following a transaction of the sort   described in rule 12 or, if no person then has Control of the Company,   the Company;

 

“Award” means a Conditional Award, an   award of Forfeitable Shares or an Option;

 

“Award Date” means the date which the   Committee set for the grant of an Award;

 

“Business Day” means a day on which the   London Stock Exchange (or, if relevant and if the Committee determine, any   stock exchange nominated by the Committee on which the Shares are traded) is   open for the transaction of business;

 

“Committee” means, subject to   rule 12.4, the remuneration committee of the board of directors of the   Company or any other committee or other body to whom the board of directors   delegates some or all of their functions under these rules;

 

“Company” means Vodafone Group Plc;

 

“Conditional Award” means a conditional   right to acquire Shares granted under the Plan;

 

“Control” has the meaning given to it by   Section 995 of the Income Tax Act 2007;
    

 

1

 

	
 
    	
 
    	
“Dealing Restrictions” means restrictions   imposed by statute, order, regulation or Government directive, or by the   Model Code or any code adopted by the Company based on the Model Code;

 

“Demerger” means any corporate transaction   which, in the opinion of the Committee, is a demerger (in any form) or which   in the Committee’s opinion has or should have equivalent effect, and which   may, without limitation, include the disposal of shares in a Member of the   Group and/or assets of a Member of the Group in exchange for shares in   another company;

 

“Director” means any PLC Director, any   member of the Group Executive Committee and, any other person designated,   from time to time, by the Committee;

 

“Expected Value” means the value of an   Award on the Award Date using a valuation methodology determined by the   Committee, which takes account of the sum of all various possible performance   outcomes at Vesting and which reflects the probabilities of achieving   different performance outcomes, rather than the maximum outcome only;

 

“Forfeitable Shares” means Shares held in   the name of or for the benefit of a Participant subject to the Forfeitable   Share Agreement;

 

“Forfeitable Share Agreement” means the   agreement referred to in rule 19.1 (Forfeitable Share Agreement);

 

“Grantor” means the Company or any other   Member of the Group which grants Awards under the Plan with the approval of   the Committee;

 

“Holding Percentage” means the percentage   of Share received on Vesting or exercise which are subject to a Holding   Period, as set by the Committee under rule 4.3.1;

 

“Holding Period” means any period during   which Shares received on Vesting or exercise must be held, as set by the   Committee under rule 4.3.1;

 

“HMRC” means HM Revenue and Customs;

 

“ITEPA” means Schedule 4 to the Income Tax   (Earnings and Pensions) Act 2003;

 

“London Stock Exchange” means London Stock   Exchange plc;

 

“JV Company” means any company or   undertaking:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)                                 in the ordinary   share capital of which the Company has an interest in shares of any class of   at least five per cent in nominal value of the allotted shares of that class;   and

 

(b)                                 which is not a   Subsidiary; and

 

(c)                                  which is designated   by the Committee as a JV Company (for some or all purposes under the Plan)

 

or   any undertaking which is a subsidiary undertaking of such a company or   undertaking.

 

For   the purpose of this definition, “undertaking”   shall have the meaning given to it by Section 1161 of the Companies Act   2006. “Subsidiary undertaking”   shall have the meaning given to it by Section 1162 of the Companies Act   2006.

 

“Market Value Option” means an Option the   Option Price of which is sent by reference to the market value of a Share or   an American Depository Share (ADS) on or around the Award Date;

 

“Member of the Group” means:
    

 

2

 

	
 
    	
 
    	
(a)                                 the Company; and

 

(b)                                 its Subsidiaries   from time to time;

 

(c)                                  any JV Company and

 

(d)                                 any other company   which is associated with the Company and is so designated by the Committee   (for some or all purposes under the Plan);
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Model Code” means the UK Listing   Authority Model Code for transactions in securities by directors, certain   employees and persons connected with them;

 

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

 

“Option Price” means the amount payable on   the exercise of an Option;

 

“Participant” means a person holding an   Award or his personal representatives;

 

“Performance Condition” means any   performance condition imposed under rule 4.1 (Performance Conditions);

 

“Performance Period” means the period in   respect of which a Performance Condition is to be satisfied;

 

“Plan” means these rules known as   “The Vodafone Global Incentive Plan 2014” as amended from time to time;

 

“PLC Director” means any director of the   Company;

 

“Prescribed Services” means any services   which are the same or similar to those provided by any Member of the Group   and/or the relevant Participant during a period of 12 months prior to and on   Termination of Employment including, but not limited to, the provision, sale   or marketing of any communications products and services; converged   communication products and services (including but not limited to voice,   data, messaging, broadband connectivity, cellular and internet access) and   converged business network and IT products and services (such as access   services, managed network services, converged application services and   managed hosting services) the same or similar to those provided by Members of   the Group as at Termination of Employment;

 

“Regulatory Information Service” means a   service that is approved by the Financial Services Authority as meeting the   Primary Information Provider criteria and is on the list of Regulatory   Information Services maintained by the Financial Services Authority;

 

“Shares” means, subject to rules 14,   20.2 and 21.1, fully paid ordinary shares in the capital of the Company or   American Depository Shares (ADS) representing those shares;

 

“Subsidiary” means a company which is a   subsidiary of the Company within the meaning of Section 1159 of the   Companies Act 2006;

 

“Termination of Employment” means a   Participant ceasing to be an employee of a Member of the Group. For these   purposes a Participant will not be treated as ceasing to be an employee of a   Member of the Group until he ceases to be a permanent employee or director of   all Members of the Group or, if the Grantor so decides, he recommences   permanent employment with or becomes a director of a Member of the Group   within 14 calendar days;

 

“Vesting” means:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)                                 in   relation to an Option, the Option becoming exercisable;
    

 

3

 

	
 
    	
 
    	
(b)                                 in relation to a   Conditional Award, a Participant becoming entitled to have the Shares issued   or transferred to him subject to these rules; and

 

(c)                                  in relation to an   Award of Forfeitable Shares, the restrictions in the Forfeitable Share   Agreement ceasing to have effect.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Vesting Date” means the date set by the   Grantor under rule 4.3.4 and, if not set by the Grantor, shall be the   third anniversary of the Award Date.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
3                                         Granting Awards
    
	
 
    	
 
    	
 
    
	
See also   Tax-Qualified Options

 

See also Special   Provisions for Directions
    	
 
    	
3.1                               Eligibility

 

The   Grantor may grant an Award to any employee (including an executive director)   of any Member of the Group. However, unless the Committee decides otherwise,   an Award may not be granted to an employee who, on the Award Date, has given   or received notice of termination of employment, whether or not such   termination is lawful.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.2                               Approval of Committee

 

Awards   may only be granted by a Member of the Group (other than the Company) with   the approval of the Committee.

 

3.3                               Awards by reference to a Participant’s investment in   Shares

 

The   Grantor may decide that the number of Shares subject to an Award will be   determined by reference to:

 

3.3.1                     the   number of Shares held by or on behalf of the Participant on any date or dates   set by the Grantor; or

 

3.3.2                     the   number of Shares bought by or on behalf of the Participant within a period   set by the Grantor; or

 

3.3.3                     the   gross equivalent of an amount invested by or on behalf of the Participant in   Shares within a period set by the Grantor.

 

3.4                               Timing of grant

 

Awards   may not be granted at any time after 28 July 2024 and may only be   granted within 42 calendar days starting on any of the following:

 

3.4.1                     the   date of the Company’s annual general meeting; or

 

3.4.2                     the   date of shareholder approval of the Plan or any amendment to it; or

 

3.4.3                     the   day after the announcement of the Company’s results through a Regulatory   Information Service for any period; or

 

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

 

3.4.5                     any   day on which changes to the legislation or regulations affecting employee   share plans are announced, effected or made; or

 

3.4.6                     the   lifting of Dealing Restrictions which prevented the granting of Awards during   any period specified above.
    

 

4

 

	
 
    	
 
    	
4                                         Terms of Awards to be set by Grantor
    
	
 

See also Special   Provisions for Directions
    	
 
    	
 

4.1                               Performance Conditions

 

4.1.1                     When   granting an Award, the Grantor may make its Vesting conditional on the   satisfaction of one or more conditions linked to the performance of the   Company, as set by the Committee. A Performance Condition must (subject to   rule 4.1.2) be objective and specified at the Award Date and may provide   that an Award will lapse to the extent it is not satisfied. The purpose of   the Performance Condition will be to ensure that the Vesting of Awards is   subject to the satisfaction of demanding targets linked to the performance of   the Company.

 

4.1.2                     A   Performance Condition may allow the Committee, having determined the extent   to which any objective condition is satisfied, to decide, in its discretion,   that the Award will not Vest or will Vest to a lesser extent than that to   which the objective condition is satisfied. That decision need not be made on   objective grounds.

 

4.1.3                     In   exceptional circumstances, the Grantor, with the approval of the Committee,   may waive or change a Performance Condition in accordance with its terms or   if anything happens which causes the Grantor and the Committee reasonably to   consider it appropriate.

 

4.2                               Other conditions

 

4.2.1                     The   Grantor, with the approval of the Committee, may set other conditions which   are specified at the Award Date and may provide that an Award will lapse to   the extent it is not satisfied.

 

4.2.2                     In   exceptional circumstances, the Grantor, with the approval of the Committee,   may amend or waive these conditions if anything happens which causes the   Committee reasonably to consider it appropriate.

 

4.3                               Other terms to be set on grant

 

When granting an Award, the Grantor will specify:

 

4.3.1                     whether   the Award is:

 

(i)                                     an   Award of Forfeitable Shares (see rule 19);

 

(ii)                                  a   Nil-Cost Option (see rule 20);

 

(iii)                               a   Market Value Option (see rule 20);

 

(iv)                              a   Conditional Award (see rule 21);

 

(v)                                 or   a combination of these;

 

4.3.2                     subject   to rules 7 and 22.2 the number of Shares subject to the Award;

 

4.3.3                     the   terms of any Performance Condition or other condition;

 

4.3.4                     the   Vesting Date;

 

4.3.5                     whether   the Participant is entitled to receive any cash or shares in respect of   dividends under rule 20.4 (for Options) or 21.3 (for Conditional   Awards);
    

 

5

 

	
 
    	
 
    	
4.3.6                     whether   the Award is subject to a Holding Period and, if so, the date or dates on   which it will end and the Holding Percentage(s);

 

4.3.7                     the   Award Date;
    
	
 
    	
 
    	
 
    
	
See also Options
    	
 
    	
4.3.8                     in   the case of an Option, the Option Price and the latest date on which the   Option will lapse under rule 20.6.4; and

 

4.3.9                     which,   if any, of the schedules to these rules will apply to the Award.

 

These terms will be set out in the deed referred to   in rule 5.1.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
5                                         Form of Awards
    
	
 
    	
 
    	
 
    
	
See also   Forfeitable Shares
    	
 
    	
5.1                               Award certificates

 

Awards   will be granted by deed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Each   Participant will be informed of the terms of his Award (to the extent not set   out in the Plan) as soon as practicable after the Award Date. This may be   done by giving the Participant the deed referred to above (or a copy of it)   or in such other manner (including by electronic means) as the Company may   allow.

 

An   Award of Forfeitable Shares will be subject to the Forfeitable Share   Agreement. See rule 19 for more information on how Awards of Forfeitable   Shares are granted.

 

5.2                               No payment

 

A   Participant is not required to pay for the grant of any Award.

 

5.3                               Disclaimer of Award

 

Any   Participant may disclaim all or part of his Award at any time within 90   calendar days after the Award Date by notice in writing to any person   nominated by the Grantor. If this happens, the Award will be deemed never to   have been granted under the Plan. A Participant is not required to pay for   the disclaimer. A notice of disclaimer received on or after the 90th day   after the Award Date shall have no effect.

 

6                                         No transfer of Awards

 

A   Participant may not transfer, assign or otherwise dispose of an Award or any   rights in respect of it. If he does, whether voluntarily or involuntarily,   then it will immediately lapse. This rule 6 does not apply:

 

(a)                                 to the transmission   of an Award on the death of a Participant to his personal representatives; or

 

(b)                                 to the transfer,   assignment or other disposal of an Award, with the prior consent of the   Committee, subject to any terms and conditions the Committee imposes.

 

7                                         Limits on the use of newly issued shares and   treasury shares

 

7.1                               10 % in 10 years limit

 

The   number of Shares which may be allocated under the Plan on any day must not   exceed 10 per cent of the ordinary share capital of the Company in issue   immediately before that day, when added to:
    

 

6

 

	
 
    	
 
    	
7.1.1                     the   number of Shares which have been allocated under the Plan in the previous 10   years and

 

7.1.2                     the   number of Shares which have been allocated on an all-employee basis, under   the Plan and any other employee share plan operated by the Company, in the   previous 10 years.

 

7.2                               5 % in 10 years limit

 

The   number of Shares which may be allocated under the Plan on any day must not   exceed 5 per cent of the ordinary share capital of the Company in issue   immediately before that day, when added to the number of Shares which have   been allocated, other than on an all-employee basis, under the Plan and any   other employee share plan adopted by the Company, in the previous 10 years.

 

7.3                               Exclusion

 

Where   the right to acquire Shares is released or lapses, the Shares concerned are   ignored when calculating the limits in this rule 7.

 

7.4                               Definitions for this rule 7

 

7.4.1                     For   the purposes of this rule 7, Shares are “allocated” if they have been issued or may be issued for   the purposes of satisfying an Award. For so long as the Committee considers   that it is best practice to count treasury shares for the purposes of the   limits in this rule 7, Shares are also “allocated” if they have been or   may be transferred out of treasury for the purposes of satisfying Awards.

 

7.4.2                     For   the purposes of this rule 7, Shares are allocated on an “all-employee basis” if they are offered   or allocated:

 

(i)                                     by a Member of   the Group to all or substantially all employees of that or any other Member   of the Group on similar terms; or

 

(ii)                                  under an   all-employee share plan.

 

For   these purposes, Shares may be allocated or offered on similar terms even   though the terms on which they are offered or allocated may vary by reference   to the employees’ remuneration, age, length of service or the country in   which he works.

 

8                                         Normal Vesting of Awards

 

8.1                               Time of vesting

 

Except   where rules 10 or 12 apply and subject to rule 11, an Award shall   Vest on the latest of the following:

 

8.1.1                     the   date on which the Committee has determined the extent to which any   Performance Condition and other conditions if applicable, are satisfied;

 

8.1.2                     the   Vesting Date;

 

8.1.3                     the   date on which any Dealing Restriction which prevent Vesting on the dates   specified above ceases to apply.
    

 

7

 

	
 
    	
 
    	
8.2                               Determination of Performance Condition

 

As   soon as reasonably practicable after the end of the Performance Period, the   Committee will determine whether and to what extent any Performance Condition   has been satisfied and how many Shares Vest for each Award.

 

8.3                               Consequences of Vesting

 

The   consequences of Vesting for each type of Award are set out:

 

8.3.1                     for   Forfeitable Shares, in rule 19.7;

 

8.3.2                     for Options   in rule 20.5;

 

8.3.3                     for   Conditional Awards in rule 21.4.

 

9                                         Holding Period

 

9.1                               No transfer of Shares subject to a Holding Period

 

9.1.1                     If   an Award is subject to a Holding Period, the Participant must not transfer,   assign or dispose of the Holding Percentage of the Shares issued or   transferred to him on Vesting or any rights in respect of them before the end   of the Holding Period except with the prior consent of the Committee and   subject to any terms and conditions the Committee may impose.

 

9.1.2                     To   give effect to this, the Committee may decide that:

 

(i)                                     the Shares may   be issued or transferred to another person to be held for the benefit of the   Participant instead of to the Participant; and/or

 

(ii)                                  the Company will   retain the share certificates or other documents of title relating to the   Shares until the end of the Holding Period; and/or

 

(iii)                               the Participant must   sign additional documentation, for example a power of attorney or blank stock   transfer form,

 

9.1.3                     The   Participant must enter into any elections in relation to the Shares subject   to a Holding Period required by the Committee, including elections under   Part 7 of the Income Tax (Earnings and Pensions) Act 2003.

 

9.1.4                     Shares   which are subject to an Option which has Vested but not been exercised will   be treated as held in accordance with this rule 9.

 

9.1.5                     Unless   the Grantor decides otherwise, in general or in any particular case, the   Holding Percentage will be applied to the Shares issued or transferred on   Vesting after any deductions or sales required under rule 15 (tax).

 

9.2                               Rights of Participant during the Holding Period

 

9.2.1                     Except   to the extent specified above, the Participant will be entitled to vote (or   instruct any person holding the Shares on his behalf how to vote) and to   receive dividends and will have all other rights of a shareholder in respect   of the Shares where the record date for the right falls on or after the date   on which the Shares are issued or transferred to him.

 

9.2.2                     For   the avoidance of doubt, rule 10 (Termination of Employment) and   rule 11.1 (Malus) will not apply during a Holding Period but   rule 11.2 (Clawback) will apply.
    

 

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9.3                               Effect of takeovers and restructurings on Holding   Period

 

A   Holding Period will come to an end on the date on which Awards Vest or are   exchanged under rule 12 (takeovers and restructurings). However, if the   Committee decides that Awards will be exchanged under rule 12.1.3 then   it may decide that Shares subject to a Holding Period will be exchanged for   shares in the Acquiring Company and that those shares will be held under this   rule 9 until the end of the Holding Period.

 

10                                  Termination of Employment and death

 

10.1                        General rule on Termination of Employment

 

Unless   rule 10.2 applies, a Participant’s Award will lapse on Termination of   Employment.

 

10.2                        Termination of Employment in special circumstances

 

A   Participant’s Award will not lapse on Termination of Employment after the   date which is six complete calendar months from the last day of the month in   which the Award Date falls by reason of:

 

10.2.1              ill-health,   injury or disability, as established to the satisfaction of the Company or   the Participant’s employing company;

 

10.2.2              death;

 

10.2.3              the   Participant’s employing company ceasing to be under the Control of the   Company or a Member of the Group;

 

10.2.4              a   transfer of the undertaking, or the part of the undertaking, in which the   Participant works to a person which is neither under the Control of the   Company nor a Member of the Group;

 
    
	
See also Special   Provisions for Directors
    	
 
    	
10.2.5              retirement   with the agreement of the Company or the Participant’s employing company;

 

10.2.6              redundancy   (but only in the case of:
    
	
 
    	
 
    	
 

(i)                                     any Award   granted before 1 February 2018; or

 

(ii)                                  any Award granted   to a Participant who on Termination of Employment held no Awards which were   subject to Performance Conditions); or

 

10.2.7              any   other reason, if the Committee so decides in general or in any particular   case.

 

10.3                        Continuation of Award

 

10.3.1              Unless   rule 10.3.2 or rule 10.4 applies and subject to the provisions of   these rules relating to a Demerger, where rule 10.2 applies, the   Award will continue in effect and Vest or lapse in accordance with its terms   (including any Performance Condition) and the number of Shares in respect of   which it Vests will be reduced in the manner described in rule 10.5.

 

10.3.2              This   rule 10.3.2 applies to an Award made on or after 1 February 2018   where that Award continues in effect under rule 10.3.1 and where the   relevant Participant’s Termination of Employment was by reason of:

 

(i)                                     retirement   within rule 10.2.5; or
    

 

9

 

	
 
    	
 
    	
(ii)                                  redundancy   and the Committee decided that rule 10.2.7 should apply.

 

If,   before any such Award Vests, the Participant.

 

(i)                                     accepts   employment or office in, or carries on for his own account or for any other   person, whether directly or indirectly any business which provides or offers   Prescribed Services;

 

(ii)                                  either on his own   behalf or for or with any other person, whether directly or indirectly,   canvasses or solicits, in competition with any Member of the Group, the   custom of any person who at any time during the 12 months prior to the   Termination of Employment was a customer or client of, or in the habit of   dealing with, any Member of the Group and in respect of whom the Participant   had access to confidential information or with whose custom or business the   Participant (or employees reporting directly to him) were personally   concerned;

 

(iii)                               either on his own   behalf or for or with any other person, whether directly or indirectly,   canvasses or solicits in competition with any Member of the Group, the custom   of any person who was negotiating with any Member of the Group for the supply   of goods or services (whether as customer, client, supplier, agent or   distributor) during the six months before Termination of Employment; or

 

(iv)                              ether on his own behalf   or for or with any other person, whether directly or indirectly, entices or   tries to entice away from any Member of the Group any person who was an   employee, agent, consultant or associate of such a company on Termination of   Employment and who had been an employee, agent, consultant or associate at   any time during the six months prior to that date and with whom the   Participant had worked closely at any time during that period,

 

the   Committee may, in its discretion, and having taken into account all relevant   circumstances, determine that the Award will lapse, in whole or in part,   before it Vests.

 

10.3.3              Each   of the circumstances for lapse of an Award under this rule 10.3 is entirely   separate and independent. If any of those circumstances is found to be   invalid this will not affect the validity or enforceability of any of the   others.

 

10.4                        Early Vesting

 

10.4.1              An   Award will Vest on the date of Termination of Employment (or such later date   as the Committee may determine) if rule 10.2 applies and:

 

(i)                                     Termination of   Employment is by reason of death ill-health, injury or disability, as   established to the satisfaction of the Company or the Participant’s employing   company; or

 

(ii)                                  if immediately   before Termination of Employment the Participant held no Awards which were   subject to Performance Conditions.

 
    
	
See also Special   Provisions for Directors
    	
 
    	
10.4.2              Subject   to rule 10.4.3, the Award will only Vest to the extent that any Performance   Condition is satisfied on the date of Vesting and rule 10.5 will apply.   The Committee will determine the extent to which the Performance Condition   has been satisfied in
    

 

10

 

	
 
    	
 
    	
the   manner specified in the Performance Condition or, if this is not specified in   the Performance Condition, in such manner as it considers reasonable. The   Award will immediately lapse to the extent that the Performance Condition is   not satisfied.

 

10.4.3              If the   Award is subject to a Performance Condition and it Vests before the end of   the financial year in which the Award is made, the Performance Condition will   not be applied. Instead, the number of Shares in respect of which the Award   Vests shall be determined in accordance with the formula in rule 10.5   but “a” in that formula will be 50% of the number of Shares subject to the   Award and rule 10.5 will not otherwise apply.

 

10.5                        Reduction in number of Shares Vesting

 

The   number of Shares in respect of which the Award would otherwise Vest under   rules 10.3 or 10.4 (as applicable) shall be reduced in accordance with   the following formula (provided that that number shall not exceed the number   of Shares subject to the Award):

 

 
    
	
 
    	
 
    	
where:

 

a                      =                      the number   of Shares subject to the Award;

 

b                      =                      the number   of complete calendar months from the Award Date until the date of Termination   of Employment;

 

c                       =                      the number   of complete calendar months from the Award Date until the Vesting Date.

 

The   Award shall immediately lapse as to the balance.

 

Unless   the Committee decides otherwise, this rule 10.5 shall not apply to any   Awards made on an all-employee basis (as defined in rule 7.4.2).

 

10.6                        Changing the time of Vesting

 

If   an Award would continue in effect under rule 10.3, the Committee may, at   any time, decide that it will, instead, vest early under rule 10.4 or   vice versa.

 

10.7                        Sale of Shares on Vesting of all-employee Awards

 

Unless   the Committee decides otherwise, on the Vesting of an Award made on an   all-employee basis (as defined in rule 7.4.2) under this rule 10,   the Shares to which the Participant is entitled will be sold on his behalf   and the proceeds remitted to the Participant as soon as practicable after the   date of Termination of Employment.

 

10.8                        General

 

The   Committee must exercise any discretion provided for in rule 10.2 no   later than 90 calendar days after Termination of Employment and the Award   will be deemed to have lapsed or Vested (as appropriate) on the date of   Termination of Employment.
    

 

11

 

	
 
    	
 
    	
11                                  Malus and clawback

 

11.1                        Malus

 

If   one or more of the events listed in rule 11.3 occurs, the Committee may   decide that:

 

11.1.1              an Award will   lapse wholly or in part;

 

11.1.2              an Award will Vest   to a lesser extent than it would otherwise have Vested; and/or

 

11.1.3              Vesting will be   delayed for such period as it may determine.

 

11.2                        Clawback

 

If   one or more of the events listed in rule 11.3 occurs, the Committee may   decide, at any time in the two years following the date of Vesting of an   Award granted after 28 July 2017, that the Participant must:

 

11.2.1              transfer   to or to the order of the Company a number of Shares determined by the   Company which is no more than the number of Shares issued or transferred   pursuant to the Award; and/or

 

11.2.2              pay to   or to the order of the Company an amount representing the value of the Shares   acquired under the Award; and/or

 

11.2.3              pay to   or to the order of the Company an amount equal to any cash payment made   pursuant to the Award.

 

11.3                        Events giving rise to malus or clawback

 

The   events giving rise to malus and clawback are:

 

11.3.1              There   has been a material mis-statement in the accounts of the Group, any member of   the Group or the member of the Group by which the Participant was employed or   the business unit in which he worked.

 

11.3.2              Following   Termination of Employment, facts have emerged which if known at the time,   would have caused the Award to lapse or would have resulted in the Committee   exercising any discretion differently.

 

11.3.3              Information   has emerged which would have affected the level of the Award which was   granted to the Participant, or the level at which any Performance Conditions   were determined to have been satisfied.

 

11.3.4              Any   other events if the Committee considers it appropriate that rule 11.1 or   11.2 should apply.

 

11.4                        General

 

11.4.1              For   the avoidance of doubt, rules 11.1 or 11.2 can apply even if the   Participant was not responsible for the event in question or if it took place   before the Vesting or grant of the Award or the grant, Vesting or exercise of   an Option or after Termination of Employment.

 

11.4.2              Those   rules may be applied in different ways for different Participants in   relation to the same or different events or in different ways for different   Awards of the same Participant.
    

 

12

 

	
 
    	
 
    	
11.4.3              Without   limiting rule 16.5, the Participant will not be entitled to any   compensation in respect of the operation or purported operation of this   rule 11.

 

12                                  Takeovers and restructurings

 

12.1                        Takeover

 

12.1.1              Where   a person (or a group of persons acting in concert) obtains Control of the   Company as a result of making an offer to acquire Shares, an Award will Vest,   subject to rule 12.1.3, on the date the person obtains Control but only   to the extent that any Performance Condition has been satisfied. The Award   will lapse as to the balance.

 

12.1.2              Where   an Award vests under rule 12.1.1, the Committee will determine the extent   to which any Performance Condition has been satisfied in the manner specified   in the Performance Condition or, if this is not specified in the Performance   Condition, in such manner as they consider reasonable. In addition, the   extent to which an Award will Vest will, unless the Committee decides   otherwise, be further reduced pro rata to reflect the acceleration of   Vesting.
    
	
 
    	
 
    	
 
    
	
See also   Approved Options
    	
 
    	
12.1.3              An   Award will not Vest under rule 12.1.1 but will be exchanged under   rule 14 (Exchange of Awards):

 

(i)                                     if a Participant   accepts an offer to exchange his Award; or

 

(ii)                                  if the Committee,   with the consent of the Acquiring Company, decides, before the person obtains   Control, that the Awards will be automatically exchanged;

 

(iii)                               if the shareholders of   the Acquiring Company, immediately after it has obtained Control, are   substantially the same as the shareholders of the Company before it obtained   Control.

 

Rule 12.1.3(iii) will   not apply if the Committee considers that there are exceptional   circumstances.

 

12.2                        Scheme of arrangement

 

12.2.1              If,   under section 895 of the Companies Act 2006, a court sanctions a compromise   or arrangement in connection with the acquisition of Shares, an Award will   Vest on the date of court sanction but only to the extent that any   Performance Condition has been satisfied. The Award will lapse as to the   balance. This rule 12.2 also applies where there is an equivalent   procedure under any non-UK legislation.

 

12.2.2              Where   an Award vests under rule 12.2.1, the Committee will determine the   extent to which any Performance Condition has been satisfied in the manner   specified in the Performance Condition or, if this is not specified in the   Performance Condition, in such manner as they consider reasonable. In   addition, the Committee may decide that the number of Shares in respect of   which the Award will Vest will be reduced pro rata to reflect the   acceleration of Vesting.
    
	
 
    	
 
    	
 
    
	
See also   Tax-Qualified Options
    	
 
    	
12.2.3              An   Award will not Vest under rule 12.2.1 but will be exchanged under   rule 14 (Exchange of Awards):

 

(i)                                     if the   Participant accepts an offer to exchange his Award; or

 

(ii)                                  if the Committee,   with the consent of the Acquiring Company, decides before court sanction,   that the Awards will be automatically exchanged;
    

 

13

 

	
 
    	
 
    	
(iii)                               if the shareholders of   the Acquiring Company, immediately after the effective date of the   compromise, arrangement or procedure, are substantially the same as the shareholders   of the Company before the effective date.

 

Rule 12.2.3(iii) will   not apply if the Committee considers that there are exceptional   circumstances.

 

12.3                        Demerger or other corporate event

 

12.3.1              If the   Committee becomes aware that the Company is or is expected to be affected by   any Demerger, distribution (other than an ordinary dividend) or other   transaction not falling within rules 12.1 (Takeover), or 12.2 (Scheme of   arrangement) which, in the opinion of the Committee, would affect the current   or future value of any Award, the Committee may allow an Award to Vest but   only to the extent that any Performance Condition has been satisfied and   subject to any other conditions the Committee may decide to impose. The Award   will lapse as to the balance.

 

12.3.2              Where   an Award Vests under rule 12.3.1, the Directors will determine the   extent to which any Performance Condition has been satisfied and the   proportion of the Award which will Vest in the manner specified in the   Performance Condition or, if this is not specified in the Performance   Condition, in such manner as they consider reasonable. In addition, the   Directors may decide that the number of Shares in respect of which the Award   will Vest will be reduced pro rata to reflect the acceleration of Vesting.

 

12.3.3              The   Company will notify any Participant who is affected by the Committee   exercising their discretion under this rule 12.3.

 

12.4                        Composition of the Committee for this rule 12

 

In   this rule 12, the “Committee” means those people who were members of the   remuneration committee of the Company immediately before the change of   Control.

 

13                                  Overseas transfer

 

If   a Participant is transferred to work in another country and, as a result of   that transfer, he would:

 

(a)                                 suffer a tax   disadvantage in relation to his Awards (this being shown to the satisfaction   of the Committee); or

 

(b)                                 become subject to   restrictions on his ability to deal with his Awards or to hold or deal in the   Shares or the proceeds of the sale of the Shares acquired on vesting or   exercise because of the security laws or exchange control laws of the country   to which he is transferred

 

then,   if the Participant continues to hold an office or employment with a Member of   the Group, the Committee may decide that the Awards will Vest on a date they   choose before or after the transfer takes effect. The Award will Vest to the   extent they permit and will not lapse as to the balance.
    

 

14

 

	
See also   Tax-Qualified Options
    	
 
    	
14                                  Exchange of Awards

 

14.1                        Timing of exchange
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
If   an Award is to be exchanged under rule 12 (Takeovers and restructuring)   the exchange will take place as soon as practicable after the relevant event.

 

14.2                        Terms of exchange

 

Where   a Participant is granted a new award in exchange for an existing Award, the   new Award:

 

14.2.1              must   confer a right to acquire shares in the Acquiring Company or another body   corporate determined by the Acquiring Company;

 

14.2.2              subject   to the rest of this rule 14, will be governed by the same terms as   applied to the existing Award immediately before exchange;

 

14.2.3              must   be equivalent to the existing Award, subject to rule 14.2.5;

 

14.2.4              will   be treated as having been acquired at the same time as the existing Award   and, subject to rule 14.2.5, will Vest in the same manner and at the   same time;

 

14.2.5              must   either:

 

(i)                                     be subject to a   Performance Condition which is, in the opinion of the Committee, equivalent   to any Performance Condition applying to the existing Award; or

 

(ii)                                  not be subject to   any Performance Condition but be in respect of the number of shares which is   equivalent to the number of Shares comprised in the existing Award which   would have Vested under rule 12.1, 12.2 or 12.3 (in which case, the   Award will lapse as to the balance);

 

14.2.6              will   be governed by the Plan as if references to Shares were references to the   shares over which the new award is granted and references to the Company were   references to the Acquiring Company or the body corporate determined under   rule 14.2.1.

 

15                                  Tax

 

15.1                        Withholding of tax

 

The   Company, the Grantor, any employing company or the trustee of any employee   benefit trust may withhold such amount and make such arrangements as it   considers necessary to meet any liability to taxation or social security   contributions in respect of an Award. These arrangements may include the sale   of Shares on behalf of a Participant or a reduction in number of Shares to   which the Participant would otherwise be entitled or such other arrangements   as may be acceptable to the Company, the Grantor, any employing company or   the trustee of any employee benefit trust.

 

15.2                        Elections to transfer social security liabilities

 

The   Participant must, if required by the Grantor or the Company to do so, enter   into any election to transfer the liability to employer social security   contributions in respect of an
    

 

15

 

	
 
    	
 
    	
Award.   The Grantor shall not be required to issue or transfer any Shares or make any   cash payment under the Plan until he does so.

 

16                                  General

 

16.1                        Committee’s decisions final and binding

 

The   decision of the Committee on the interpretation of the Plan or in any dispute   relating to an Award or matter relating to the Plan will be final and   conclusive.

 

16.2                        Consistency with remuneration policy and regulatory   requirements

 

Nothing   in these rules or the terms of any Award will oblige the Grantor or any   other person to issue or transfer any shares or make payment (including any   remuneration payment or payment for loss of office) which would be   inconsistent with:

 

16.2.1              the   approved directors’ remuneration policy of the Company and in breach of   Chapter 4A of Part 10 of the Companies Act 2006; or

 

16.2.2              any   law, regulation, guideline or rule book applicable to any Member of the   Group or any remuneration policy adopted pursuant to such a law, regulation,   guideline or rule book,

 

and   to the extent that any Award is so inconsistent:

 

16.2.3              the   Directors may, acting reasonably and in good faith, adjust (retrospectively   or otherwise) the number or class of shares or securities comprised in an   Award, the Option Price and/or impose additional conditions on the Vesting of   such Award; and

 

16.2.4              no   Member of the Group will be obliged to seek the approval of any regulator or   of its members in general meeting for any such issue, transfer or payment or   to changes to its policy to enable such issue, transfer or payment.

 

16.3                        Documents sent to shareholders

 

The   Company may send to Participants copies of any documents or notices normally   sent to the holders of its Shares at or around the same time as issuing them   to the holders of its Shares.

 

16.4                        Regulations

 

The   Committee can make or vary regulations for the administration and operation   of the Plan but these must be consistent with its rules.

 

16.5                        Terms of employment

 

16.5.1              For   the purposes of this rule 16.5, “Employee”   means any person who is or will be eligible to be a Participant or any other   person.

 

16.5.2              This   rule 16.5 applies:

 

(i)                                     whether the Company   has full discretion in the operation of the Plan, or whether the Company   could be regarded as being subject to any obligations in the operation of the   Plan;

 

(ii)                                  during an   Employee’s employment or employment relationship; and
    

 

16

 

	
 
    	
 
    	
(iii)                               after the termination   of an Employee’s employment or employment relationship, whether the   termination is lawful or unlawful.

 

16.5.3              Nothing   in the rules or the operation of the Plan forms part of the contract of   employment or employment relationship of an Employee. The rights and   obligations arising from the employment relationship between the Employee and   the Company are separate from, and are not affected by, the Plan. Participation   in the Plan does not create any right to, or expectation of, continued   employment or a continued employment relationship.

 

16.5.4              The   grant of Awards on a particular basis in any year does not create any right   to or expectation of the grant of Awards on the same basis, or at all, in any   future year.

 

16.5.5              No   Employee is entitled to participate in the Plan, or be considered for   participation in it, at a particular level or at all. Participation in one   operation of the Plan does not imply any right to participate, or to be   considered for participation in any later operation of the Plan.

 

16.5.6              Without   prejudice to an Employee’s right in respect of an Award subject to and in   accordance with the express terms of the Plan and the Performance Condition, no   Employee has any rights in respect of the exercise or omission to exercise   any discretion, or the making or omission to make any decision, relating to   the Award. Any and all discretions, decisions or omissions relating to the   Award may operate to the disadvantage of the Employee, even if this could be   regarded as capricious or unreasonable, or could be regarded as in breach of   any implied term between the Employee and his employer, including any implied   duty of trust and confidence. Any such implied term is excluded and   overridden by this rule 16.5.

 

16.5.7              No   Employee has any right to compensation for any loss in relation to the Plan,   including:

 

(i)                                     any loss or   reduction of any rights or expectations under the Plan in any circumstances   or for any reason (including lawful or unlawful termination of employment or   the employment relationship);

 

(ii)                                  any exercise of a   discretion or a decision taken in relation to an Award or to the Plan, or any   failure to exercise a discretion or take a decision;

 

(iii)                               the operation,   suspension, termination or amendment of the Plan.

 

16.5.8              Participation   in the Plan is permitted only on the basis that the Participant accepts all   the provisions of its rules, including in particular this rule 16.5. By   participating in the Plan, an Employee waives all rights under the Plan,   other than the right to acquire shares subject to and in accordance with the   express terms of the Plan and the Performance Condition, in consideration   for, and as a condition of, the grant of an Award under the Plan.

 

16.5.9              Nothing   in this Plan confers any benefit, right or expectation on a person who is not   an Employee. No such third party has any rights under the Contracts (Rights   of Third Parties) Act 1999 to enforce any term of this Plan. This does not affect   any other right or remedy of a third party which may exist.

 

16.5.10       Each of the   provisions of this rule 16.5 is entirely separate and independent from   each of the other provisions. If any provision is found to be invalid then it   will be deemed never to have been part of these rules and to the extent   that it is possible
    

 

17

 

	
 
    	
 
    	
to   do so, this will not affect the validity or enforceability of any of the   remaining provisions.

 

16.6                        Employee trust

 

Subject   to rule 16.7, the Company and any Subsidiary of the Company may provide   money to the trustee of any trust or any other person to enable them or him   to acquire shares to be held for the purposes of the Plan, or enter into any   guarantee or indemnity for those purposes, to the extent permitted by Chapter   32 of Part 18 of the Companies Act 2006.

 

16.7                        Satisfying Awards to employees of JV Companies

 

Notwithstanding   the terms of any Award or any other term of the Plan, no Award made to an employee   of a JV Company shall be satisfied in any way which would involve the Company   or any Subsidiary giving financial assistance (as defined in Chapter 32 of   Part 18 of the Companies Act 2006) directly or indirectly for the   purpose of satisfying the Award, unless that financial assistance is   permitted under UK legislation at that time.

 

16.8                        Data protection

 

By   participating in the Plan the Participant consents to the holding and   processing of personal data provided by the Participant to the Company or a   Member of the Group for all purposes relating to the operation of the Plan.   These include, but are not limited to:

 

16.8.1              administering   and maintaining Participant records;

 

16.8.2              providing   information to trustees of any employee benefit trust, registrars, brokers or   third party administrators of the Plan;

 

16.8.3              providing   information to future purchasers of the Company or the business in which the   Participant works;

 

16.8.4              transferring   information about the Participant to a country or territory outside the   European Economic Area.

 

16.9                        Consents

 

All   allotments, issues and transfers of Shares will be subject to any necessary   consents under any relevant enactments or regulations for the time being in   force in the United Kingdom or elsewhere. The Participant will be responsible   for complying with any requirements he needs to fulfil in order to obtain or   avoid the necessity for any such consent.

 

16.10                 Articles of association

 

Any   Shares acquired under the Plan are subject to the articles of association of   the Company from time to time in force.

 

16.11                 Rights attaching to Shares

 

Shares   issued on Vesting or exercise of an Award will rank equally in all respects   with the Shares in issue on the date of allotment. They will not rank for any   rights attaching to Shares by reference to a record date preceding the date   of allotment. Where Shares are transferred, including transferred out of   treasury, the Participant will be entitled to all rights attaching to the   Shares by reference to a record date on or after the transfer date. The   Participant will not be entitled to rights before that date.
    

 

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16.12                 Listing of Shares

 

If   and so long as the Shares are listed on the Official List of the UK Listing   Authority and traded on the London Stock Exchange, the Company will apply for   listing of any Shares issued under the Plan as soon as practicable.

 

16.13                 Notices

 

16.13.1       Any notice or   other document which has to be given to a person who is or will be eligible   to be a Participant under or in connection with the Plan may be:

 

(i)                                  delivered   or sent by post to him at his home address according to the records of his   employing company or such other address as the Company or a Member of the   Group considers appropriate; or

 

(ii)                               sent   by e-mail or fax to any e-mail address or fax number which according to the   records of his employing company is used by him;

 

(iii)                            given   by any other electronic means (including the updating of a personalised   web-page) allowed by the Company.

 

16.13.2       Any notice or   other document which has to be given to the Company or other duly appointed   agent under or in connection with the Plan may be delivered or sent by post   to it at its registered office (or such other place as the Committee or duly   appointed agent may from time to time decide and notify to Participants) or   sent by e-mail or fax to any e-mail address or fax number notified to the   Participant.

 

Notices   sent by post will be deemed to have been given on the second day after the   date of posting. However, notices sent by or to a Participant who is working   overseas will be deemed to have been given on the seventh day after the date   of posting. Notices sent by e-mail or fax, in the absence of evidence to the   contrary, will be deemed to have been received on the day after sending.

 

17                                  Changing the Plan and termination

 

The   Committee may amend the Plan by resolution. But no amendment which would be   to the advantage of present or future Participants may be made without prior   approval of the Company in general meeting to the provisions relating to   eligibility, overall limits, maximum individual entitlement or the adjustment   of Awards following a variation of share capital, 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 participants or any Member of the Group or in   accordance with rule 4.1.3 or 4.2.2.

 

The   Committee may give written notice (by electronic means or otherwise) of any   changes made to any Participant affected.

 

18                                  Governing law and jurisdiction

 

English   law governs the Plan and all Awards and their construction. The English   Courts have non-exclusive jurisdiction in respect of disputes arising under   or in connection with the Plan or any Award.
    

 

19

 

Forfeitable Shares

 

	
 
    	
 
    	
19                                  Special terms for Forfeitable Shares

 

19.1                        Granting an Award of Forfeitable Shares

 

A   Participant who is granted an Award of Forfeitable Shares must enter into an   agreement with the Grantor that:

 

19.1.1              to the   extent that the Award lapses under the Plan, the Shares will forfeited and he   will immediately transfer his interest in the Shares to the Grantor or as the   Grantor may direct, for no consideration or nominal consideration, to any   person (which may include the Company, where permitted) specified by the   Grantor; and

 

19.1.2              he   will not transfer, assign or dispose of any Forfeitable Shares or any rights   in respect of them before Vesting and if he does his Award will lapse except   in the case of:

 

(i)                                     the transmission   of his Forfeitable Shares on his death to his personal representatives; or

 

(ii)                                  the transfer,   assignment or other disposal of his Forfeitable Shares, with the prior   consent of the Committee, subject to any terms and conditions the Committee   may impose.

 

The   Participant must also sign any other documentation, including a power of   attorney or blank stock transfer form, requested by the Grantor.

 

If   he does not sign the Forfeitable Share Agreement or any other documents   requested by the Grantor within a period specified by the Grantor, the Award   will lapse at the end of that period.

 

19.2                        Transfer of shares on Award

 

On   or after the grant of an Award of Forfeitable Shares, the Grantor will   procure that the relevant number of Shares are transferred to the Participant   or to another person to be held for the benefit of the Participant under the   terms of the Plan.

 

19.3                        Tax elections

 

The   Participant must enter into any elections in relation to Forfeitable Shares   required by the Grantor or the Company, including elections under Part 7   of the Income Tax (Earnings and Pensions) Act 2003. If he does not do so   within a period specified by the Grantor or the Company, the Award will lapse   at the end of that period.

 

19.4                        Retention of share certificates

 

The   Grantor or the Company may retain the share certificates or other documents   of title relating to any Forfeitable Shares until an Award of Forfeitable   Shares Vests.

 

19.5                        Voting and dividends

 

Except   to the extent specified in the Forfeitable Share Agreement, the Participant   will be entitled to vote (or instruct any person holding the Forfeitable   Shares on his behalf how to vote) and to receive dividends and will have all   other rights of a shareholder in respect of Forfeitable Shares where the   record date for the right falls on or after the date on which the Forfeitable   Shares are issued or transferred to him.
    

 

20

 

	
 
    	
 
    	
19.6                        Variations in share capital, rights issues,   Demergers etc

 

If there is:

 

19.6.1              a   variation in the equity share capital of the Company, including a   capitalisation, subdivision, consolidation or reduction of share capital; or

 

19.6.2              a   rights issue; or

 

19.6.3              a   Demerger or exempt distribution by virtue of Section 1075 of the   Corporation Tax Act 2010; or

 

19.6.4              a   special dividend or distribution,

 

the   Participant will, subject to the Forfeitable Share Agreement, have the same   rights as any other shareholder in respect of his Forfeitable Shares. Any   shares, securities or rights allotted to a Participant as a result of such an   event shall be:

 

19.6.5              treated   as if they were awarded to the Participant under the Plan in the same way and   at the same time as the Forfeitable Shares in respect of which the rights   were conferred; and

 

19.6.6              subject   to the rules of the Plan and the terms of the Forfeitable Share   Agreement.

 

However,   securities bought by a Participant pursuant to a rights issue will not be   treated as described in rules 19.6.5 and 19.6.6 except to the extent   they are bought using the proceeds of sale of rights under that rights issue.

 

19.7                        Consequences of Vesting for Forfeitable Shares

 

Subject   to rule 9 (Holding Period), to the extent that an Award of Forfeitable   Shares Vests, the Forfeitable Share Agreement will cease to apply to the   Shares (but rule 11.2 will continue to apply). If the Shares are held by   any person for the benefit of the Participant, that person may transfer the   Shares to or to the order of the Participant.

 

19.8                        Consequences of lapse for Forfeitable Shares

 

To   the extent that an Award of Forfeitable Shares lapses, the Participant shall   transfer his interest in the Shares as described in the Forfeitable Share   Agreement.
    

 

21

 

Options

 

	
 
    	
 
    	
20                                  Special terms for Options

 

20.1                        Option Price

 

The Option Price of an Option shall be set by the   Grantor at the date of Award and:

 

20.1.1              in the   case of a Nil-Cost Option, may be zero or any other amount;
    
	
 
    	
 
    	
 
    
	
See also special   provisions for US employees
    	
 
    	
20.1.2              in the   case of a Market Value Option over Shares, shall not be less than:

 

(i)                                     the closing   middle market quotation of a Share (taken from the Daily Official List of the   London Stock Exchange) on the Business Day immediately preceding the Award   Date; or
    
	
 
    	
 
    	
 
    
	
See also special   terms for Italian optionholders
    	
 
    	
(ii)                                  if the Committee so   decides, the average of the closing middle market quotations of a Share   (taken from the Daily Official List of the London Stock Exchange) over the 5   Business Days before the Award Date.
    
	
 
    	
 
    
	
 
    	
 
    	
20.1.3              in the   case of a Market Value Option over ADSs shall not be less than the closing   price of an ADS on the New York Stock Exchange on or averaged over the period   specified in rule 20.1.2; or

 

20.1.4              in the   case of a Market Value Option which is intended to qualify for any favourable   tax treatment, may be determined in accordance with any other formula related   to the Market Value of a Share or an ADS which will enable the Option to   qualify for that favourable tax treatment.
    
	
 
    	
 
    	
 
    
	
See also Tax-Qualified   Options
    	
 
    	
20.2                        Variations in share capital, Demergers and special   distributions

 

If there is:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
20.2.1              a   variation in the equity share capital of the Company, including a   capitalisation, subdivision, consolidation or reduction of share capital; or

 

20.2.2              a   rights issue; or

 

20.2.3              a   Demerger or exempt distribution by virtue of Section 1075 of the   Corporation Tax Act 2010; or

 

20.2.4              a   special dividend or distribution;

 

the Committee may:

 

20.2.5              adjust   the number or type of shares or securities comprised in an Option; and/or

 

20.2.6              adjust   the Option Price; and/or

 

20.2.7              change   of identity of the Company or Companies whose Shares are subject to the   Option.

 

This may include retrospective adjustments.

 

The   Option Price of a Market Value Option to subscribe for Shares may be adjusted   to a price less than nominal value only if the Committee resolves to   capitalise the reserves of the Company, subject to any necessary conditions.   This capitalisation will be of an amount equal to the difference between the   adjusted Option Price payable for the Shares to be issued on exercise and the   nominal value of such Shares on the date of allotment of the Shares. If, at   the time of exercise, the Committee does not resolve to capitalise the   reserves of the
    

 

22

 

	
 
    	
 
    	
Company   for this purpose then the adjustment under this rule 20.2 will be deemed   not to have taken place.

 

20.3                        Voting and dividends

 

A   Participant shall not be entitled to vote, to receive dividends or to have   any other rights of a shareholder in respect of Shares subject to an Option   until the Shares are issued or transferred to the Participant.

 

20.4                        Dividend equivalent

 

An   Option may include the right (subject to rule 15 (Tax)) to receive cash   or Shares (as determined by the Grantor) equal in value to the amount per   Share of any dividend the record date for which falls between the Award Date   and the date of exercise and multiplied by the number of Shares subject to   the Option. The value may be calculated on the basis that dividends are   reinvested. These payments may be made:

 

20.4.1              to the   extent only and as soon as practicable after the Option is exercised; or

 

20.4.2              as   soon as practicable after the relevant dividend is paid.

 

Unless   otherwise specified at the Award Date, the amount paid will be calculated on   the basis of the amount paid to an individual shareholder who is resident and   domiciled in the UK for all tax purposes.

 

20.5                        Consequences of Vesting for Options

 

A   Participant may exercise an Option, to the extent it has Vested, at any time   after it has Vested.

 

20.6                        Periods for exercise of Options

 

Subject   to rule 20.7, an Option which has Vested will be exercisable:

 

20.6.1              where   it has Vested as a result of the Participant ceasing to be an employee (see   rule 10), for twelve months from the date of Termination of Employment   or, if later, the date of Vesting;

 

20.6.2              where   it has Vested as a result of the Participant’s death (see rule 10.2.2),   for 12 months from his death;

 
    
	
See also   Tax-Qualified Options
    	
 
    	
20.6.3              where   the Option has Vested under rule 12 (e.g. as a result of a takeover or   reconstruction), for six months from the date of Vesting or, if earlier, the   date six weeks after the date on which a notice to acquire Shares under   section 979 of the Companies Act 2006 or any other equivalent local   legislation is first served; and

 

20.6.4              in all   other cases for six months from the date of Vesting of a Nil-Cost Option or   for 10 years after the Award Date of a Market Value Option (or such shorter   period as the Committee may specify on grant).

 

Where   a Participant dies during an exercise period the Option will be exercisable   for 12 months from the date of death. This rule 20.6 does not extend the   exercise period of an Option which has Vested under rule 12.

 

20.7                        Lapse of Options

 

An   Option will lapse at the end of any exercise period specified in   rule 20.6.
    

 

23

 

	
 
    	
 
    	
For the avoidance of doubt:

 

20.7.1              an   Option can lapse under rule 10.1 or 11.1 even though it may have   previously Vested;

 

20.7.2              in the   event of any conflict, the provision of these rules (including any   schedules) which results in the Option ceasing to be exercisable or lapsing   earliest shall take precedence.

 

20.8                        Manner of exercise

 

Subject   to rule 20.9, Options must be exercised by notice in writing or in a   form specified by the Company and delivered to the Company or other duly   appointed agent or by telephone or by other electronic means approved by the   Company. The notice of exercise of the Option must be completed, signed (in   manuscript or in any other form that may be specified by the Company) by the   Participant or by his appointed agent, and must be accompanied by:

 

20.8.1              the   relevant option certificate (if required by the Company); and

 

20.8.2              correct   payment in full of the Option Price for the number of Shares being acquired or   details of arrangements agreed between the Participant and the Company made   for the payment of the Option Price for the number of Shares being acquired.

 

20.9                        Automatic exercise of Options

 

20.9.1              To the   extent that an Option has Vested but has not been exercised by the close of   the Business Day before a date on which it is to lapse automatically under   these rules and it is in the money on that day, the Company may treat it   as having been exercised on that day.

 

20.9.2              If   they do so, the Company will arrange for sufficient of the Shares resulting   from the exercise to be sold on behalf of the Participant to raise an amount   (after costs of sale) equal to the Option Price and any tax or social   security required to be withheld under rule 15. The remaining Shares   subject to the Option will be issued or transferred as set out in   rule 20.10.

 

20.9.3              An   Option is ‘in the money’ on any   day, if the Committee estimates that, if all the Shares resulting from   exercise were sold on that day, the sale proceeds (after making a reasonable   allowance for any costs of sale) would be more than the Option Price.

 

20.9.4              The   Participant may give notice to the Company, at any time before the Business   Day referred to in rule 20.9.1 that that rule should not apply to   the Option.

 

20.10                 Issue or transfer of Shares after exercise

 

Subject   to rules 9 (Holding Period), 11.2 (Clawback) 15 (Tax) and 20.11(Other   ways of satisfying an Option), Shares will be issued or transferred (from   treasury or otherwise) to or to the order of the Participant within 30   calendar days of the date of receipt of payment of the Option Price and the   documents required under rule 20.8.

 

However,   if the issue or transfer is prevented by any Dealing Restrictions, the Shares   will be issued or transferred as soon as is practicable following the lifting   of the Dealing Restrictions.
    

 

24

 

	
 

See also   Tax-Qualified Options
    	
 
    	
20.11                 Other ways of satisfying an Option (e.g. SARs)

 

The   Grantor, subject to the approval of the Committee, may decide to satisfy an   Option by:

 

20.11.1       paying   (subject to rule 15 (Tax)) a cash amount which is equal to the amount by   which the market value of the Shares in respect of which the Option is   exercised, as at date of exercise, exceeds the Option Price; or
    
	
 
    	
 
    	
 
    
	
 

See also special   provisions for US employees
    	
 
    	
20.11.2       procuring the   issue or transfer of Shares to the value of the cash amount specified above.

 

If   the Committee does this, the Participant need not pay the Option Price or, if   he has paid it, the Company will repay it to him.

 

The   Grantor may determine that Awards will be satisfied in cash at the Award Date   or at any time subsequently.
    

 

25

 

Conditional Awards

 

	
 
    	
 
    	
21                                  Special terms for Conditional Awards

 

21.1                        Variations in share capital, Demergers and special   distributions

 

If there is:

 

21.1.1              a   variation in the equity share capital of the Company, including a   capitalisation, subdivision, consolidation or reduction of share capital; or

 

21.1.2              a   rights issue; or

 

21.1.3              a   Demerger or exempt distribution by virtue of Section 1075 of the   Corporation Tax Act 2010; or

 

21.1.4              a   special dividend or distribution; 

 

The Committee may:

 

21.1.5              adjust   the number or type of shares or securities comprised in a Conditional Award;   and/or

 

21.1.6              change   of identity of the company or companies whose shares are subject to the   Conditional Award.

 

This may include retrospective adjustments.

 

21.2                        Voting and dividends

 

A   Participant shall not be entitled to vote, to receive dividends or to have   any other rights of a shareholder in respect of Shares subject to a   Conditional Award until the Shares are issued or transferred to the   Participant.

 

21.3                        Dividend equivalent

 

A   Conditional Award may include the right (subject to rule 15 (Tax)) to   receive cash or Shares (as determined by the Grantor) equal in value to the   amount per Share of any dividend the record date for which falls between the   Award Date and the date of Vesting and multiplied by the number of Shares   subject to the Conditional Award. The value may be calculated on the basis   that dividends are reinvested. These payments may be made:

 

21.3.1              to the   extent only and as soon as practicable after the Conditional Award Vests; or

 

21.3.2              as   soon as practicable after the relevant dividend is paid.

 

Unless   otherwise specified at the Award Date, the amount paid will be calculated on   the basis of the amount paid to an individual shareholder who is resident and   domiciled in the UK for all tax purposes.

 

21.4                        Consequences of Vesting for Conditional Awards

 

Subject   to rules 9, 11.2,15, 21.5 and 21.6, Shares will be issued or transferred   (from treasury or otherwise) to or to the order of the Participant within 30   calendar days of the date of Vesting of a Conditional Award.

 

However,   if the issue or transfer is prevented by any Dealing Restrictions, the Shares   will be issued or transferred as soon as is practicable following the lifting   of the Dealing Restrictions.
    

 

26

 

	
 
    	
 
    	
21.5                        Cash alternative

 

The   Grantor, subject to the approval of the Committee, may decide to satisfy a   Conditional Award by paying (subject to rule 15 (Tax)) a cash amount   equal to the market value of the Shares subject to the Conditional Award.

 

21.6                        Sale of Shares on Vesting of all-employee Awards

 

Unless   the Committee decides otherwise, and subject to rule 9.3, on the Vesting   of an Award made on an all-employee basis (as defined in rule 7.4.2),   the Participant will, subject to rule 15, be given the choice to either   sell all of the Shares to which he is entitled, or to have all such Shares   issued or transferred to him. If the Participant does not register his choice   in the manner prescribed by the Committee, the Shares to which he is entitled   will be sold on his behalf and the proceeds remitted to the Participant as   soon as practicable after the Vesting Date.
    

 

27

 

Special Provisions for Directors

 

	
 
    	
 
    	
22                                  Special provisions for Directors

 

This   rule 22 applies, notwithstanding anything else in the rules or any   schedule, to any Award made to a person who, on the Award Date, is a   Director.

 

22.1                        Performance Conditions for all Awards to PLC   Directors

 

Except   where the Award was made on an all-employee basis (as defined in   rule 7.4.2), the Grantor shall always make Vesting of an Award granted   to a PLC Director conditional on the satisfaction of one or more conditions   linked to the performance of the Company as described in rule 4.1.

 

22.2                        Individual limits for PLC Directors

 

To   ensure that there is strong linkage between pay and performance, the majority   of the PLC Directors’ total remuneration is delivered by performance linked incentive   plans. Except where the Committee determines that exceptional circumstances   apply in the case of a significant recruit the maximum Expected Value of all   Awards made to a PLC Director in any financial year shall not exceed 400% of   base salary as at the Award Date or such other limit as may be set out in the   approved directors’ remuneration policy current at the time of Award.

 

Awards   shall be excluded from the calculations under this rule 22.2 if they are   made on an all-employee basis within the meaning of rule 7.4.2.

 

22.3                        Vesting on leaving employment

 

An   Award will lapse on Termination of Employment if the Committee considers that   the Director has resigned or in other circumstances if the Committee, in its   discretion, so determines. Rules 10.1 and 10.2 will not apply to the   Award.

 

Subject   to rule 22.4, if the Award does not lapse, it will continue in effect or   lapse as described in rule 10.3 and the number of Shares in respect of   which it Vests will be reduced in the manner described in rule 10.5 and,   for the avoidance of doubt, the Committee may exercise its discretion under   rule 10.6 (but rule 10.4.3 will not apply).

 

22.4                        Award lapses if Director competes or solicits

 

Unless   the Committee decides otherwise, an Award which continues in effect under   rule 22.3, will lapse if, before it Vests, the Director:

 

22.4.1              accepts   employment or office in, or carries on for his own account or for any other   person, whether directly or indirectly any business which provides or offers   Prescribed Services;

 

22.4.2              either   on his own behalf or for or with any other person, whether directly or   indirectly, canvasses or solicits, in competition with any Member of the   Group, the custom of any person who at any time during the 12 months prior to   the Termination of Employment was a customer or client of, or in the habit of   dealing with, any Member of the Group and in respect of whom the Director had   access to confidential information or with whose custom or business the   Director (or employees reporting directly to him) were personally concerned;

 

22.4.3              either   on his own behalf or for or with any other person, whether directly or   indirectly, canvasses or solicits in competition with any Member of the   Group, the custom of any person who was negotiating with any Member of the   Group for the supply of
    

 

28

 

	
 
    	
 
    	
goods   or services (whether as customer, client, supplier, agent or distributor)   during the six months before Termination of Employment;

 

22.4.4              either   on his own behalf or for or with any other person, whether directly or   indirectly, entices or tries to entice away from any Member of the Group any   person who was an employee, agent, consultant or associate of such a company   on Termination of Employment and who had been an employee, agent, consultant   or associate at any time during the six months prior to that date and with   whom the Director had worked closely at any time during that period.

 

Each   of the circumstances for lapse of an Award under this rule 22.4 is   entirely separate and independent. If any of those circumstances is found to   be invalid this will not affect the validity or enforceability of any of the   others.
    

 

29

 

UK Tax-favoured options

 

	
 
    	
 
    	
Schedule 1

 

United Kingdom — Tax-Favoured   Options

 

The   Grantor may designate any Market Value Option (which is not capable of   satisfaction as a SAR or in cash) as an Tax-Qualified Option. If it does, the   provisions of the rules relating the Market Value Options will apply to   the Tax-Qualified Option, subject to this Schedule. No other types of Awards   may be designated as Tax-Qualified Options under this Schedule.

 

The   purpose of this Schedule is to provide, in accordance with Schedule 4,   benefits for employees and directors in the form of Tax-Qualified Options.

 

1                                         Eligibility to be granted Tax-Qualified Options

 

Tax-Qualified Options may only be granted to an   employee of:

 

(a)                                 the Company;

 

(b)                                 Subsidiary;

 

(c)                                  any jointly-owned   company (within the meaning of paragraph 34 ITEPA) designated by the   Committee; or

 

(d)                                 any other entity   designated by the Committee and agreed provided that its participation does not   cause this schedule to cease to be a Schedule 4 Plan,

 

and cannot be granted to anybody who is:

 

(e)                                  excluded from   participation because of paragraph 9 of ITEPA (material interest provisions);   or

 

(f)                                   a director who is   required to work less than 25 hours a week (excluding meal breaks) for the   Company.

 

2                                         Shares subject to an Tax-Qualified Option

 

The   Shares subject to a Tax-Qualified Option must satisfy paragraphs 16 to 20 of   ITEPA. Except where paragraph 12 below applies, if they cease to satisfy   paragraphs 16 to 20 of ITEPA and this schedule is to cease to be a Schedule 4   Plan, the definition of ‘Shares’ in rule 2 will apply but the Option   will be treated, for the purposes of the rules, as a Market Value Option.

 

3                                         Individual limit on Tax-Qualified Options

 

The   Committee must not grant a Tax-Qualified Option to an eligible employee which   would cause the aggregate market value of:

 

(a)                                 the Shares subject   to that Tax-Qualified Option; and

 

(b)                                 the Shares which he   may acquire on exercising other Tax-Qualified Options; and

 

(c)                                  the shares which he   may acquire on exercising his options under any other plan in relation to   which the requirements of Parts 2 to 6 of ITEPA are (and are being) met (a ‘Schedule 4 Plan’) established by the   Company or by any of its associated companies (as defined in paragraph 35 of   ITEPA),

 

to   exceed the amount permitted under paragraph 6(1) of ITEPA (currently   £30,000). For the purposes of this paragraph, market value is calculated as   at the date of grant of the options as described in the relevant plan rules.
    

 

30

 

	
 
    	
 
    	
If   the Committee tries to grant a Tax-Qualified Option which is inconsistent   with this paragraph 3, the Tax-Qualified Option will be limited and will take   effect from the Award Date on a basis consistent with that rule.

 

4                                         Option Price

 

The   Option Price of a Tax-Qualified Option will be determined in accordance with   rule 20.1 but any restriction referred to in paragraph 5(c) will be   ignored when determining the Option Price.

 

5                                         Notification of terms of Tax-Qualified Option

 

The   Grantor will ensure that the Participant is notified of the following as soon   as practicable after grant of a Tax-Qualified Option:

 

(a)                                 the number and   description of the Shares subject to the Option;

 

(b)                                 the Option Price;

 

(c)                                  whether or not the   Shares subject to the Option are subject to any restriction (as defined in   paragraph 36(3) of Schedule 4) and, if so, the details of any such   restrictions;

 

(d)                                 the times at which the   Option may be exercised (in whole or in part);

 

(e)                                  the circumstances   under which the Option will lapse or be cancelled (in whole or in part),   including any conditions to which the exercise of the Option (in whole or in   part) is subject; and

 

(f)                                   any mechanism   (including any Performance Condition) by way of which any terms referred to   in sub-paragraphs (a) and (c) to (e) above can be changed.

 

The notification may be given wholly or partly   through the Award Certificate referred to in rule 5.1.

 

6                                         Transferring Tax-Qualified Options

 

A   Tax-Qualified Option cannot be transferred, assigned or otherwise disposed   of, except on the transmission of the Tax-Qualified Option on the death of a   Participant to his personal representatives.

 

7                                         Variations in share capital, Demergers and special   distributions

 

7.1                               Adjustments   may be made to Tax-Qualified Options under rule 20.2 (Variations in   share capital etc) only where there is a variation of the capital of which   Shares form part and:

 

7.1.1                     the   total Option Price after adjustment must be substantially the same as before   adjustment; and

 

7.1.2                     the   total market value of the Shares subject to the Option must remain   substantially the same; and

 

7.1.3                     the   Plan must continue to be a Schedule 4 Plan.

 

7.2                               An   annual return relating to the Plan submitted to HMRC following any such   adjustment must include a declaration that the Plan continues to comply with   Schedule 4.
    

 

31

 

	
 
    	
 
    	
8                                         Restriction on exercise of an Tax-Qualified Option

 

A   Participant may not exercise a Tax-Qualified Option while he is excluded from   being granted an Tax-Qualified Option under paragraph 9 of ITEPA (material   interest provisions).

 

9                                         Redundancy

 

Redundancy,   for the purposes of rule 10.2.1, has the meaning given to that term by   the Employment Rights Act 1996.

 

10                                  Death

 

If   the Participant dies (irrespective of the death occurring during an exercise   period), the Tax-Qualified Option may be exercised by his personal   representatives within 12 months after his death, after which it will lapse.

 

11                                  Exchange of Tax-Qualified Options

 

11.1                        If HMRC   approval of the terms of Tax-Qualified Options is to be maintained,   Tax-Qualified Options can only be exchanged, as described in rule 14, if   the Acquiring Company:

 

11.1.1              obtains   Control of the Company as a result of making a general offer falling within   paragraph 25A of ITEPA; or

 

11.1.2              obtains   Control of the Company under a compromise or arrangement sanctioned by the   court under Section 895 of the Companies Act 2006; or

 

11.1.3              becomes   bound or entitled to acquire Shares under Sections 979 of the Companies Act   1985.

 

11.2                        Tax-Qualified   Options must be exchanged within the period referred to in paragraph   26(2) of ITEPA and with the agreement of the company offering the   exchange.

 

11.3                        The new   option will be in respect of shares which satisfy the conditions of paragraph   27(4) of ITEPA, in a body corporate falling within paragraph   16(b) or (c) of ITEPA).

 

11.4                        If the   Participant does not agree to any exchange of his Tax-Qualified Option under   rule 14 when required to do so by the Company, the Tax-Qualified Option   will immediately lapse and will not be exchanged.

 

12                                  Takeovers and Restructurings

 

If   a Tax-Qualified Option becomes or is to become exercisable under one of   rules 12.1 (Takeovers) or 12.2 (scheme of arrangement) and, as a result   of the event by virtue of which that rule applies, Shares in the Company   would no longer meet the requirements of Part 4 of ITEPA, it may be   exercised under that rule only within a 20 day period:

 

(a)                                 before (and   conditionally on) the relevant event taking place; or

 

(b)                                 after the relevant   event,

 

and will lapse at the end of that period to the   extent not so exercised.

 

13                                  Cash alternative

 

Rule 20.11   does not apply in relation to Tax-Qualified Options.

 

14                                  Changing the terms of Tax-Qualified Options

 

The   Committee powers under rule 17 are further restricted in relation to   Tax-Qualified Options as described in this paragraph.
    

 

32

 

	
 
    	
 
    	
14.1                        The   Option Price of a subsisting Tax-Qualified Option can only be changed   pursuant to rule 20.2 (Variations in share capital etc), as varied by   this Schedule.

 

14.2                        The   number and nature of Shares subject to a subsisting Tax-Qualified Option can   only be changed rule 20.2 (Variations in share capital etc) as varied by   this Schedule, or any mechanism notified under paragraph 5(f).

 

14.3                        Any   change to the other matters notified under paragraph 5 in relation to an   outstanding Tax-Qualified Option or under the mechanism referred to above   must be done in a fair and reasonable manner.

 

14.4                        An   annual return submitted to HMRC following any change to a term of a   Tax-Qualified Option which is necessary to comply with Parts 2 to 6 of Schedule   4 must include a declaration that the Plan continues to comply with Schedule   4.

 

15                                  Dividend equivalent

 

Rule 20.4   does not apply in relation to Tax-Qualified Options.
    

 

33

 

	
 
    	
 
    	
Schedule 2

 

Option Price for Options granted to   Italian employees(1)

 

The Option Price   for a Market Value Option granted to any employee who may be subject to tax   in Italy may, if the Committee so decides, be the average closing middle   market quotation of a Share (as derived from the Official List of the London   Stock Exchange) over the 30 calendar days preceding and including the Award   Date or such other price determined by the Directors so as to ensure that   such employee does not suffer a tax disadvantage.
    

 

(1)         For the avoidance of doubt, the Option Price for Options granted to Italian employees will not be lower than the Option Price calculated in accordance with Rule 17.1.2. The price produced by using the formula set out in this Schedule 2 will only be used as the Option Price if it produces a higher price than that produced under Rule 17.1.2.

 

34

 

United States

 

	
 
    	
 
    	
Schedule 3

 

Special provisions for US employees

 

1                                         Awards   are intended not to constitute “non-qualified deferred compensation” within   the meaning of Section 409A of the US Internal Revenue Code of 1986, as   amended (the “Code”).

 

2                                         However,   notwithstanding anything to the contrary in the Plan or the grant of any   Award, if and to the extent the Committee shall determine that the terms of   the grant, substitution or exercise of any Award may result in the failure of   the such Award to comply with the requirements of Section 409A of the   Code, or any applicable regulations or guidance promulgated by the US   Secretary of the Treasury in connection therewith, the Committee shall have   authority to take such action, in its sole discretion, to amend, modify,   cancel or terminate the Plan or any grant of any Award as it deems necessary   or advisable either for the Awards to be exempt from the application of   Section 409A of the Code or to satisfy the requirements of   Section 409A of the Code, including adding conditions with respect to   the Vesting of the Awards, irrespective of the adverse effect of such action   on and without the consent of any Participant.

 

3                                         The   following rules shall not apply to any Award if the Committee determines   that the application of those rules would or could cause the Award to   become subject to Section 409A of the Code:

 

3.1                               rule 20.1.2(i) (which   relates to the Option Price); and

 

3.2                               rule 20.11.1   (which allows for an Option to be cashed out).

 

4                                         If   the disposition of Shares acquired pursuant to any Award is not covered by a   then current registration statement under the Securities Act and is not   otherwise exempt from such registration, such Shares shall be restricted   against transfer to the extent required under the Securities Act of 1933, and   the Committee may require any person receiving Shares pursuant to an Award,   as a condition precedent to receipt of such Shares, to represent to the   Company in writing that the Shares acquired by such individual are acquired   for investment only and not with a view to distribution and that such Shares   will be disposed of only if registered for sale under the Securities Act of   1933 or if there is an available exemption for such disposition.

 

5                                         Notwithstanding   anything else in the Plan, the Company shall not be required to take any   action which it, in its discretion, considers could reasonably be deemed to   result in a violation of Section 13(k) of the US Securities   Exchange Act of 1934, as amended.
    

 

35

 

United States – tax-favoured options

 

	
 
    	
 
    	
Schedule 4

 

United States — Tax-favoured   options

 

The   Grantor may, on the Award Date, designate any Market Value Option as an   Incentive Stock Option within the meaning of Section 422 of the Code (an   “ISO”). If it does so, the   provisions of the rules relating the Market Value Options will apply to   the ISO, subject to this Schedule.

 

1                                         Definitions

 

“Code” means the United States of America   Internal Revenue Code of 1986, as amended;

 

“Disability” means the inability to   engage in any substantial gainful activity by reason of any medically   determinable physical or mental impairment which can be expected to result in   death or which has lasted or can be expected to last for a continuous period   of not less than 12 months;

 

“Subsidiary Corporation” means any   corporation (other than the Company) in an unbroken chain of corporations   beginning with the Company if, at the time of the granting of the Option,   each of the corporations other than the last corporation in the unbroken   chain owns stock possessing 50 per cent or more of the total combined voting   power of all classes of stock in one of the other corporations in such chain;

 

2                                         Eligibility to be granted ISOs

 

An ISO may only   be granted to an Eligible Employee who is an employee of the Company or a   Subsidiary Corporation.

 

3                                         Exercise period for ISOs

 

Notwithstanding   anything in the rules, an ISO will lapse, at the latest, 10 years (or five   years, in the case of an individual described in   Section 422(b)(6) of the Code (relating to certain 10% owners))   after the Award Date.

 

4                                         Individual Limit on ISOs

 

To   the extent that the aggregate Market Value (determined as of the Award Date)   of the Shares subject to ISOs held by any Participant which first Vest during   any calendar year under the Plan (or any of the stock option plan required to   be taken into account under Section 422(d) of the Code) exceeds   US$100,000, the portion of such grant that exceeds US$100,000 shall not be an   ISO but shall continue in effect as a Market Value Option governed by the   rules, not including this Schedule.

 

5                                         Option Price for an ISO

 

The   Option Price of an ISO will not be less than 100% (or 110%, in the case of an   individual described in Section 422(b)(6) of the Code (relating to   certain 10% owners)) of the Market Value of a Share on the date the ISO is   granted.

 

6                                         Overall limit on number of ISOs

 

The   aggregate number of Shares subject to ISOs will not exceed the lower of the   limits set out in rule 7 and 63,000,000 Shares. The Committee may make   such adjustments as it sees fit to this limit to take account of any   transaction described in rules 12.3, 19.6, 20.2 or 21.1 (which deal with   Demergers, rights issues and variations in capital).
    

 

36

 

	
 
    	
 
    	
7                                         Transferring ISOs

 

An   ISO may not be transferred, assigned or otherwise disposed of other than by   will or the laws of descent and distribution and, during the lifetime of such   individual, must not be exercisable by any other person.

 

8                                         Holding requirement

 

If   a Participant disposes of Shares acquired upon exercise of an ISO in a   “disqualifying disposition” within the meaning of Section 422 of the   Code less than:

 

8.1                               two   years after the Award Date of the ISO; or

 

8.2                               one   year from the issue or transfer of Shares to the Participant on exercise,

 

or   in any other disqualifying disposition within the meaning of Section 422   of the Code, the Participant shall notify the Company in writing as soon as   practicable of the date and terms of such disposition. Rule 15 (Tax)   will apply to any resulting federal, state or local tax or social security   contributions.

 

9                                         Disability

 

A   Participant’s ISO will lapse 12 months after the Participant’s Termination of   Employment by reason of his Disability.

 

10                                  Governing law

 

English   law governs the ISOs and their construction but ISOs will be construed in   accordance with the provisions of Section 422 of the Code so as to   preserve their status as Incentive Stock Options.

 

11                                  Failure to comply with the Code in relation to an   ISO

 

To   the extent that an ISO fails to meet any of the requirements of Section 422   of the Code, it shall cease to be an ISO but shall, from the date of the   failure, continue in effect as a Market Value Option governed by the rules,   not including this Schedule.
    

 

37

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