Document:

CSR Share Award Plan

 Exhibit 10.2 
  
 CSR plc 
  
 THE CSR SHARE AWARD PLAN 
  
  
  
 This is a copy of the rules of the CSR Share Award Plan as 
 produced to the Annual General Meeting
of CSR plc held on 
 4 May 2005 and signed by the Chairman for the purposes of 
 identification only 
  
  
  
 Chairman 
  
  
  
 Approved by shareholders: 4 May 2005 
  
 

 

 THE CSR SHARE AWARD PLAN 
  
 CONTENTS 
  

			
	 Part A: Interpretation and Administration
	  	Rules 1 – 3
		
	 Part B: Grant of Awards
	  	Rules 4 – 11
		
	 Part C: Exercise of Awards
	  	Rules 12 – 13
		
	 Part D: Cessation of Employment
	  	Rules 16 – 17
		
	 Part E: Recovery of Tax
	  	Rule 18
		
	 Part F: Corporate Transactions
	  	Rules 19 – 22
		
	 Part G: Amendments
	  	Rules 23 – 24
		
	 Part H: Miscellaneous
	  	Rules 25 – 32

 CONTENTS 
  

					
	1	  	DEFINITIONS	  	1
			
	2	  	INTERPRETATION	  	4
			
	3	  	ADMINISTRATION	  	5
			
	4	  	ELIGIBILITY	  	6
			
	5	  	MAKING OF AWARDS	  	6
			
	6	  	TIMING OF GRANT OF AN AWARD	  	6
			
	7	  	INDIVIDUAL LIMIT ON THE MAKING OF AWARDS	  	7
			
	8	  	OVERALL LIMITS ON THE MAKING OF AWARDS	  	7
			
	9	  	TAX INDEMNITY	  	7
			
	10	  	ACCEPTANCE OF AN AWARD	  	7
			
	11	  	DATA PROTECTION	  	8
			
	12	  	RELATIONSHIP WITH CONTRACT OF EMPLOYMENT	  	8
			
	13	  	NON-TRANSFERABILITY OF AWARDS	  	8
			
	14	  	PERFORMANCE TARGETS	  	9
			
	15	  	EXERCISE OF AWARDS	  	9
			
	16	  	CESSATION OF EMPLOYMENT	  	10
			
	17	  	TIME OF LEAVING	  	11
			
	18	  	RECOVERY OF TAX	  	12
			
	19	  	CHANGE OF CONTROL	  	13
			
	20	  	STATUTORY RECONSTRUCTION	  	13
			
	21	  	DEMERGER	  	13
			
	22	  	WINDING-UP	  	14
			
	23	  	REORGANISATION NOT INVOLVING A CHANGE OF CONTROL	  	14
			
	24	  	EXTENT TO WHICH AWARDS MAY BE EXERCISED ON A CORPORATE TRANSACTION	  	14
			
	25	  	VARIATION OF SHARE CAPITAL	  	15
			
	26	  	ALTERATION OF THE PLAN	  	15
			
	27	  	ALLOCATION OF FUNDS	  	16
			
	28	  	SERVICE OF DOCUMENTS	  	16
			
	29	  	RIGHTS ATTACHING TO SHARES	  	16
			
	30	  	STAMP DUTY	  	17
			
	31	  	JURISDICTION	  	17
			
	32	  	THIRD PARTY RIGHTS	  	17
		
	SCHEDULE 1—PERFORMANCE TARGET	  	18
		
	Appendix 1—2005 COMPARATOR GROUP	  	21
		
	SCHEDULE 2—CONTINGENT SHARE AWARDS	  	22

 PART A: INTERPRETATION AND ADMINISTRATION 
  

	1.	DEFINITIONS 

  

	1.1	In this Plan the following words and expressions have the meanings given below:- 

  

			
	 “Acquiring Company”
	  	a company which has acquired Control of the Company
		
	 “Announcement”
	  	the announcement to the London Stock Exchange of the annual or half yearly results of the Company for a Year or the announcement of results for another period
		
	 “Auditors”
	  	the auditors for the time being of the Company or in the event of there being joint auditors, such one of them as the Committee may decide, or such other firm of registered auditors as the
Committee may decide
		
	 “Award”
	  	a right to acquire Shares subject to the terms and conditions of the Plan and which may, where the Committee so determines at the Award Date, be in the form of either an option to acquire a
number of Shares for nil-cost or to subscribe for a number of Shares at the aggregate par value of those Shares. An Award shall include a Performance Share Award or a Retention Award as the context admits
		
	 “Award Date”
	  	the date on which an Award is made
		
	 “Awardholder”
	  	a person to whom an Award has been made or, if that person has died, and where the context requires, his Personal Representatives
		
	“Awardholder’s Employer” (or “my Employer”)	  	

such member of the Group as is an Awardholder’s employer or, if he has ceased to be employed within the Group, was his employer or such other member of the
Group, or such other person as, under the PAYE Regulations or, as the case may be, the NI Regulations, or any other statutory or regulatory provision (whether in the United Kingdom or otherwise) is obliged to account for any Award Tax
Liability
		
	 “Award Shares”
	  	in relation to an Award at any given time, the number of Shares in respect of which such Award is then held
		
	 “Award Tax Liability”
	  	any liability of an Awardholder’s Employer or of any other person (apart from the Awardholder) to account to the Inland Revenue, the US Internal Revenue Service or other tax authority for
any amount of, or representing, income tax or NICs (which shall, include Employer’s NICs where an agreement or election has been entered into under paragraph 3A or 3B or Schedule 1 to the Social Security and Benefits Act 1992) or any
equivalent charge in the nature of tax or social security contributions (whether under the laws of the United Kingdom or of any other jurisdiction) which may arise upon the vesting, exercise or release of, or the acquisition of Shares pursuant to,
an Award
		
	 “Change of Control”
	  	in relation to the Company coming under the Control of another person, or persons acting in concert, as a result of a general offer being made as mentioned in Rule 0, the time when such person
obtains, or such persons together obtain such Control and any condition subject to which the offer is made has been satisfied

  

 1 

			
	 “Committee”
	  	the Remuneration Committee of the Directors, or such other committee comprising a majority of non-executive directors of the Company to which the Directors delegate responsibility for the
operation of this Plan or, following a Change of Control of the Company, those persons who comprised the Remuneration Committee or such other committee of the Directors immediately before such Change of Control
		
	 “Companies Act”
	  	the Companies Act 1985
		
	 “Company”
	  	CSR plc (registered in England no 04187346)
		
	 “Control”
	  	has the meaning given in section 840 of the Taxes Act
		
	 “Daily Official List”
	  	the Daily Official List of the London Stock Exchange
		
	 “Date of Approval”
	  	the date on which this Plan is approved by shareholders of the Company
		
	 “Date of Listing”
	  	the date on which the Ordinary Share Capital of the Company was admitted to trading on the London Stock Exchange
		
	 “Dealing Day”
	  	a day on which the London Stock Exchange is open for business
		
	 “Directors”
	  	the board of directors of the Company or a duly authorised committee of the directors
		
	 “Eligible Employee”
	  	an executive director or bona fide employee of any member of the Group
		
	 “Employer’s NICs”
	  	in the UK, secondary Class I NICs and, in any other jurisdiction, such other social security contributions (or equivalent taxes) for which the Awardholder’s Employer is primarily liable to
account
		
	 “Exchange of Awards”
	  	 the grant, in consideration of the release of an Award, of rights to acquire shares in an Acquiring Company or a company which has control of an
Acquiring Company or either is, or has control of, a company which is a member of a consortium owning either an Acquiring Company or a company having control of an Acquiring Company, and being rights which are:-
  
 (a)    in the opinion of the
Committee, and disregarding the Performance Target attaching to such Award, substantially equivalent in value to the value of such Award; and
  
 (b)    on terms approved by the Committee and in relation to which any performance targets set are, in the
opinion of the Committee, no more difficult to achieve within the same Performance Period than was the Performance Target set in relation to such Award

		
	 “Grantor”
	  	in relation to an Award, the Company or the Trustee who has granted such Award
		
	 “Group”
	  	the Company and any company which is for the time being a Subsidiary or a company which is (within the meaning of Section 736 of the Companies Act) the Company’s holding company or a
subsidiary of the holding company
		
	 “ITEPA”
	  	the Income Tax (Earnings and Pensions) Act 2003
		
	 “London Stock Exchange”
	  	London Stock Exchange plc
		
	 “Market Value”
	  	on a given day, the average of the middle market quotations of a Share as derived from the Daily Official List for the 3 consecutive Dealing Days last preceding that day

  

 2 

			
	 “Model Code”
	  	the Model Code on directors’ dealings in securities, as set out in the appendix to Chapter 16 of the Listing Rules issued by the UKLA from time to time or such other code adopted by the
Company, which contains provisions similar in purpose and effect to the Model Code
		
	 “NICs”
	  	in the UK, National Insurance contributions or, in any other jurisdiction, social security contributions (or other similar taxes)
		
	 “NI Regulations”
	  	the laws, regulations and practices currently in force relating to liability for, and the collection of, NICs
		
	 “Ordinary Share Capital”
	  	the issued ordinary share capital of the Company other than fixed-rate preference shares
		
	 “PAYE Regulations”
	  	the regulations made under section 684 of ITEPA
		
	 “Performance Period”
	  	the period over which the performance of the Company is to be measured for the purpose of determining whether, and to what extent, the Performance Target is met and which, unless the Committee
determines otherwise shall be the period of 3 Years beginning with the Year in which the Award Date falls
		
	 “Performance Target”
	  	the condition or conditions, relating to the performance of the Company over the Performance Period, imposed in relation to a Performance Share Award and which, unless the Committee determines
otherwise, shall be the Performance Target in Schedule 1 to this Plan
		
	“Performance Share Award”	  	an Award specified by the Committee as a Performance Share Award and that is subject to a Performance Target
		
	 “Personal Data”
	  	the name, home address, telephone number, date of birth, or National Insurance number of an Awardholder, or other employee information including details of all rights to acquire Shares or other
securities granted to such Awardholder and of Shares or other securities issued or transferred to such Awardholder pursuant to this Plan
		
	 “Personal Representatives”
	  	the personal representatives of an Awardholder (being either the executors of his will to whom a valid grant of probate has been made or, if he dies intestate, the duly appointed
administrator(s) of his estate) who have produced evidence of their appointment as such to the Company
		
	 “Plan”`
	  	The CSR Share Award Plan, as set out in these rules and amended from time to time
		
	 “Retention Award”
	  	an Award specified as a Retention Award by the Committee
		
	 “Salary”
	  	the gross rate of basic annual salary (excluding any bonus, company pension contributions, and any other perquisites and benefits-in-kind) payable to a person at a given time by members of the
Group
		
	 “Shares”
	  	fully paid ordinary shares in the capital of the Company (or following a reconstruction, demerger or reorganisation of the Company or a Change of Control, shares or other securities acquired by
virtue of, or in exchange for, such ordinary shares)
		
	 “Subsidiary”
	  	any company which is for the time being a subsidiary (as defined in section 736 of the Companies Act) of the Company

  

 3 

			
	 “Taxes Act”
	  	the Income and Corporation Taxes Act 1988
		
	 “Trust”
	  	any trust established by the Company for the benefit of employees of the Group
		
	 “Trustee”
	  	the trustee or trustees for the time being of a Trust
		
	 “UKLA”
	  	the Financial Services Authority in its capacity as the competent authority for the purposes of Part VI of the Financial Services and Markets Act 2000
		
	 “Vesting Date”
	  	the date, determined by the Grantor when an Award is made, after which Award Shares may be acquired by an Awardholder, subject to any Performance Target if applicable, which date shall (unless
the Grantor determines otherwise) be the third anniversary of the Award Date
		
	 “Vested Shares”
	  	 Award Shares which an Awardholder has become entitled to acquire (as mentioned in Rule 0) in consequence of:-
  
 a)      the passing
of the Vesting Date and (in respect of a Performance Share Award) the Performance Target having been met; or
  
 b)      if earlier, the Award Shares being deemed to have become Vested Shares as mentioned in
Rules 0 and 0; or
  
 c)      the application of Rules 0, 0, 0 or 0
  
 Provided that where an Award has been granted to an Awardholder who is subject to the United States Federal Taxation in respect of the vesting or exercise of his Award, unless the Committee decides otherwise, no Award Shares shall first
become Vested Shares at a time when the Company is in a prohibited period (within the meaning of the Model Code), and such Award Shares shall first become Vested Shares on the date determined by the Committee to be earliest date on which the Company
is not in a prohibited period (within the meaning of the Model Code).

		
	 “Year”
	  	a financial year of the Company

  

	2.	INTERPRETATION 

  

	2.1	References to Shares in respect of which an Award subsists at any time are to be read and construed as references to the Shares over which the Award is then held (and in respect of
which it has not then lapsed and ceased to be exercisable). 

  

	2.2	Words and expressions used in this Plan and in the ancillary documents which are not defined in Rule 0 have the meanings they bear for the purposes of ITEPA.

  

	2.3	Any reference to any enactment includes a reference to that enactment as from time to time modified, extended or re-enacted. 

  

	2.4	References to rules are to the rules of this Plan and no account shall be taken of the rule headings, which are for ease of reference only. 

  

	2.5	Words denoting the masculine gender shall include the feminine. 

  

	2.6	Words denoting the singular shall include the plural and vice versa. 

  

	2.7	If any question, dispute or disagreement arises as to the interpretation of this Plan or of any rules, regulations or procedures relating to it or as to any question or right
arising from or related to this Plan, the decision of the Committee shall (except as regards any matter required to be determined by the Auditors) be final and binding upon all persons. 

  

 4 

	3.	ADMINISTRATION 

  

	3.1	The Committee shall be responsible for setting the overall policy and principles relating to the operation of this Plan. The Directors may from time to time establish rules and make
additional rules not inconsistent with the rules of the Plan and establish such procedures for its administration and implementation as they think fit. 

  

	3.2	In any matter in which they are required to act in connection with this Plan, the Auditors shall be deemed to be acting as experts and not as arbitrators and the Arbitration Act
1996 shall not apply. 

  

	3.3	The Company shall bear the costs of the administration and implementation of this Plan. 

  

 5 

 PART B: GRANT OF AWARDS 
  

	4.	ELIGIBILITY 

  

	4.1	Subject to the following provisions of this Rule 0:- 

  

	 	4.1.1	the Committee shall have absolute discretion as to the selection of persons to whom Performance Share Awards may be granted; and 

  

	 	 4.1.2
	 the Committee shall have absolute discretion in determining the criteria for selecting those individuals to whom
Retention Awards may be made.(1) 

  

	4.2	An Award may only be granted to an Eligible Employee. 

  

	4.3	An Award shall not be granted to any Eligible Employee within the period of six months ending with the date on which that person is bound to retire in accordance with his contract
of employment. 

  

	5.	MAKING OF AWARDS 

  

	5.1	An Award shall be in the form of either:- 

  

	 	5.1.1	a Performance Share Award; or 

  

	 	5.1.2	a Retention Award. 

  

	5.2	Awards shall be made by the Grantor executing a deed, provided that:- 

  

	 	5.2.1	Performance Share Awards may only be granted with the consent of the Committee; 

  

	 	5.2.2	Retention Awards may only be granted in accordance with criteria determined by the Committee under Rule 0; and 

  

	 	5.2.3	an Award may not be granted by the Trustee without the prior approval of the Company. 

  

	5.3	When an Award is made, the following shall be specified:- 

  

	 	5.3.1	the number of Award Shares; 

  

	 	5.3.2	the Vesting Date; 

  

	 	5.3.3	in respect of Performance Share Awards only, the Performance Target as determined by the Committee; 

  

	 	5.3.4	whether the Awardholder shall be required to bear the cost of Employer’s NICs payable in relation to the acquisition of Shares pursuant to such Award; and

  

	 	5.3.5	in respect of an Award granted as an option, in accordance with Rule 0 any period for exercise that is less than a period of 10 years beginning with the Award Date.

  

	6.	TIMING OF GRANT OF AN AWARD 

  

	6.1	An Award may only be made during the period of:- 

  

	 	6.1.1	42 days following the Date of Approval; 

  

	 	6.1.2	42 days beginning with the Dealing Day following an Announcement; 

  

	 	6.1.3	42 days immediately after the person to whom it is issued first becomes an Eligible Employee; 

  

	 	6.1.4	42 days following the removal of restrictions imposed by any statute, order or regulation (including any regulation, order or requirement imposed by the London Stock Exchange, UKLA
or any other regulatory authority) which had previously prevented the grant of Awards pursuant to this Rule 0; or 

  

	(1)	In the 2005 AGM circular the Company specified that Performance Share Awards will be granted to executive directors and other senior employees and Retention Awards will be granted
to selected key employees. 

  

 6 

	 	6.1.5	subject to the Model Code, at any other time, but only if, in the opinion of the Committee, the circumstances are exceptional. 

  

	6.2	No Award may be made in breach of the Model Code. 

  

	6.3	No Award shall be made after 3 May 2015. 

  

	7.	INDIVIDUAL LIMIT ON THE MAKING OF AWARDS 

  

	7.1	In any Year, the Market Value of Shares over which Awards may be granted to an Eligible Employee shall not exceed 100% of the Awardholder’s Salary, save that the figure shall
be 200% where in the opinion of the Committee Awards are to be made in exceptional circumstances. 

  

	7.2	If it is intended by the Committee or the Directors that an Awardholder shall bear the cost of the Employer’s NICs arising upon the acquisition of Shares pursuant to an Award,
the number of Shares in respect of which such Award is made may, notwithstanding the limit imposed by Rule 0, be increased by such number of Shares as the Committee or the Directors shall determine as may be appropriate (having regard to the
expected rate of Employer’s NICs) for the purpose of compensating the Awardholder for assuming, or agreeing to assume, the burden of such Employer’s NICs. 

  

	8.	OVERALL LIMITS ON THE MAKING OF AWARDS 

  

	8.1	The number of Shares in respect of which rights to subscribe for Shares may be granted pursuant to, or for the purposes of, this Plan on any day, when added to:-

  

	 	8.1.1	the number of Shares in respect of which rights to subscribe for Shares have previously been granted (and which, have not lapsed) pursuant to or for the purposes of this Plan; and

  

	 	8.1.2	the number of Shares issued or issuable pursuant to options or awards granted in the period of 10 years ending on that day pursuant to any other employees’ share plan
established by the Company 

  

	    	shall not exceed 10 per cent of the Ordinary Share Capital on that day. 

  

	8.2	For the purposes of this Rule 8, “year” means a calendar year. 

  

	8.3	In determining the above limit:- 

  

	 	8.3.1	any Shares issued to the Trustees for the purposes of the Plan or any other employees’ share plan shall be included; and 

  

	 	8.3.2	no account shall be taken of any Shares pursuant to which the option or award to subscribe for such Shares was granted prior to the Date of Listing. 

  

	8.4	For the purposes of this Rule 0 references to rights to subscribe for Shares shall, if so required in accordance with guidance issued by the Association of British Insurers, be
taken to include references to rights to acquire Shares issued or to be issued out of treasury. 

  

	9.	TAX INDEMNITY 

  

	9.1	It shall be a term and condition of every Award that the Awardholder indemnifies the Awardholder’s Employer against any Award Tax Liability. 

  

	10.	ACCEPTANCE OF AN AWARD 

  

	10.1	The provisions of Rule 0 shall only apply in relation to an Award if the Grantor determines that the Awardholder will be required to accept his Award. 

  

	10.2	If the Awardholder does not within 30 days of the Award Date (or such later time as the Grantor may determine) deliver to the Grantor a duly completed Form of Acceptance in relation
to such Award then at the end of that period the Award shall lapse and be deemed never to have been made. 

  

 7 

	11.	DATA PROTECTION 

  

	  	It shall be a term and condition of every Award that an Awardholder agrees and consents to:- 

  

	 	11.1	the collection, use, processing and transfer of his personal data by any member of the Group and, if it is not the Company, the Grantor and any third party trustee or administrator
of the Plan and any broker through whom shares are to be sold on behalf of an Awardholder; 

  

	 	11.2	members of the Group and, if it is not the Company, the Grantor and any third party trustee or administrator of the Plan, transferring the Awardholder’s Personal Data amongst
themselves for the purposes of implementing, administering and managing this Plan and the grant of Awards and the acquisition of Shares pursuant to Awards; 

  

	 	11.3	the use of Personal Data by any such person for any such purposes; and 

  

	 	11.4	the transfer to and retention of Personal Data by third parties including any third party trustee or administrator of the Plan (whether or not any such third party is situated
outside the European Economic Area) for or in connection with such purposes. 

  

	12.	RELATIONSHIP WITH CONTRACT OF EMPLOYMENT 

  

	12.1	The making of an Award shall not form part of the Awardholder’s entitlement to remuneration or benefits pursuant to his contract of employment nor does the existence of a
contract of employment between any person and the Company or any member of the Group give such person any right or entitlement to an Award in respect of any number of Shares or any expectation that an Award might be made to him in the future,
whether subject to any conditions or at all. 

  

	12.2	The rights and obligations of an Awardholder under the terms of his contract of employment with the Company or any member of the Group shall not be affected by the making of an
Award or his participation in this Plan. 

  

	12.3	Any rights or entitlement of an Awardholder created by the making of an Award shall not afford the Awardholder any rights or additional rights to compensation or damages in
consequence of the loss or termination of his office or employment with the Company or any member of the Group for any reason whatsoever (whether or not the termination is ultimately held to be wrongful or unfair). 

  

	12.4	An Awardholder shall not be entitled to any compensation or damages for any loss or potential loss which he may suffer by reason of being unable to exercise an Award in consequence
of the loss or termination of his office or employment with the Company or any member of the Group for any reason whatsoever (whether or not the termination is ultimately held to be wrongful or unfair). 

  

	13.	NON-TRANSFERABILITY OF AWARDS 

  

	13.1	An Award is personal to an Awardholder and may not be transferred during his lifetime. 

  

	13.2	An Award shall immediately lapse and cease to be exercisable if the Awardholder:- 

  

	 	13.2.1	transfers or assigns it (other than to his Personal Representatives), mortgages, charges or otherwise disposes of it; 

  

	 	13.2.2	is adjudged bankrupt or an interim order is made because he intends to propose a voluntary arrangement to his creditors under the Insolvency Act 1986 (or equivalent non-UK
legislation); 

  

	 	13.2.3	makes or proposes a voluntary arrangement under the Insolvency Act 1986 (or equivalent non-UK legislation), or any other plan or arrangement in relation to his debts, with his
creditors or any section of them; or 

  

	 	13.2.4	is otherwise deprived (except on death) of the legal or beneficial ownership of the Award by operation or law or doing or omitting to do anything which causes him to be so deprived.

  

 8 

 PART C: EXERCISE OF AWARDS 
  

	14.	PERFORMANCE TARGETS 

  

	14.1	In respect of Performance Share Awards, the number or proportion of Award Shares which shall become Vested Shares shall be conditional on Performance Targets as determined by the
Committee when the Award is made. 

  

	15.	EXERCISE OF AWARDS 

  

	15.1	An Award: 

  

	 	15.1.1	may be exercised only in respect of Vested Shares; 

  

	 	15.1.2	save as provided in Rule 0 below, may only be exercised by an Awardholder while he is a director or employee of a member of the Group; 

  

	 	15.1.3	notwithstanding any other provision of the Plan, may not be exercised after the expiration of the period of 10 years (or such shorter period as the Grantor may have determined
before its grant) beginning with the Award Date. 

  

	15.2	An Award may be exercised in such form and manner as the Directors may from time to time prescribe. 

  

 9 

 PART D: CESSATION OF EMPLOYMENT 
  

	16.	CESSATION OF EMPLOYMENT 

  

	16.1	Subject to Rule 0, if an Awardholder ceases to hold office or employment within the Group by reason of:- 

  

	 	16.1.1	injury or disability (evidenced to the satisfaction of the Company); 

  

	 	16.1.2	redundancy (within the meaning of the Employment Rights Act 1996 (or equivalent non-UK legislation)); 

  

	 	16.1.3	retirement; 

  

	 	16.1.4	death; 

  

	 	16.1.5	the fact that the office or employment by virtue of which he is eligible to participate in this Plan relates to a business or part of a business which is transferred to a person or
company which is not a member of the Group; 

  

	 	16.1.6	the fact that the company with which he holds the office or employment by virtue of which he is eligible to participate in this Plan is no longer a member of the Group; or

  

	 	16.1.7	any other reason which the Committee (in respect of Performance Share Awards) or the Directors (in the case of Retention Awards) determine in their absolute discretion to be
appropriate, 

  

	  	the Awardholder (or, if he has died, his Personal Representatives) may within the period of 6 months from the date he so ceases to hold office or employment as provided in this Rule
16 exercise an Award granted to him in respect of the number of Award Shares which 

  

	 	(a)	are Vested Shares at the date he so ceases; and 

  

	 	(b)	are additionally deemed to be Vested Shares pursuant to Rule 0 or Rule 0 below. 

  

	  	Leaving for other reasons 

  

	16.2	An Awardholder who ceases to hold office or employment within the Group for any reason other than those set out in Rule 0 shall cease to have any right or entitlement to any
Award Shares and his Award shall lapse. 

  

	  	Deemed Vesting—Retention Awards 

  

	16.3	Where an Awardholder who holds a Retention Award ceases to hold office or employment within the Group in any of the circumstances specified at Rule 0 above, the extent to which any
Award Shares subject to such Retention Award that are not then Vested Shares may be deemed to be Vested Shares shall (unless the Committee determines otherwise in exceptional circumstances) be determined by applying a pro-rata reduction to the
number of such Award Shares on the basis of the ratio that the number of complete months from the Award Date to the date of so ceasing to hold office or employment bears to 36 months. 

  

	  	Deemed Vesting—Performance Share Awards 

  

	16.4	Where an Awardholder who holds a Performance Share Award ceases to hold office or employment within the Group in any of the circumstances specified at Rule 0 above, the extent to
which any Award Shares subject to such Performance Share Award that are not then Vested Shares may be deemed to be Vested Shares shall be determined as follows (unless the Committee determines otherwise in exceptional circumstances):-

  

	 	16.4.1	by determining the extent to which the Performance Target has been satisfied at the end of the Year or at the half-year preceding such event; and 

  

	 	16.4.2	by applying a pro-rata reduction to the number of Shares determined following the application of the Performance Target on the basis of the ratio that the number of complete months
from the Award Date to the date of so ceasing to hold office or employment bears to 36 months. 

  

 10 

	17.	TIME OF LEAVING 

  

	  	For the purposes of Rule 0, an Awardholder shall be treated as ceasing to hold office or employment within the Group only when he no longer holds any office or employment with any
member of the Group or, if earlier, he gives or receives notice to terminate any office or employment with any member of the Group or is summarily dismissed from any such office or employment. 

  

 11 

 PART E: RECOVERY OF TAX 
  

	18.	RECOVERY OF TAX 

  

	18.1	If an Award Tax Liability arises pursuant to vesting, exercise, or release of an Award or on the acquisition of Shares pursuant to an Award then, unless:- 

 

	 	18.1.1	the Awardholder has indicated (in such manner as the Company may specify) that he will make a payment to the Company of an amount equal to the Award Tax Liability; and

  

	 	18.1.2	the Awardholder does, within 14 days of being notified by the Company of the amount of the Award Tax Liability, make such payment to the Company 

  

	  	the Company or, if different, the Grantor shall, to the extent necessary to satisfy the indemnity given pursuant to Rule 0, have the right:- 

  

	 	(a)	to retain and sell as agent for the Awardholder a sufficient number of the Shares acquired pursuant to the exercise of the Award and procure payment to the Awardholder’s
Employer, out of the net proceeds of sale of such Shares (after deducting fees, commissions and expenses incurred in relation to the sale), of monies sufficient to satisfy such indemnity; or 

  

	 	(b)	to withhold the necessary amount from any payment of the Awardholder’s remuneration. 

  

 12 

 PART F: CORPORATE TRANSACTIONS 
  

	19.	CHANGE OF CONTROL 

  

	19.1	Subject to Rule 0, if, the Company shall come under the Control of another person as a result of:- 

  

	 	19.1.1	a general offer to acquire the whole of the Ordinary Share Capital which is made on a condition such that if it is satisfied the person making the offer will have Control of the
Company; or 

  

	 	19.1.2	a general offer to acquire all the shares in the Company of the same class as the Shares; 

  

	  	then Awards may be exercised to the extent (if any) permitted by Rule 0 within the period of 6 months of the Change of Control. 

  

	19.2	Any Awards shall, to the extent not exercised, lapse and cease to be exercisable at the end of such period as is mentioned in Rule 0. 

  

	19.3	If at any time any person becomes entitled or bound to acquire Shares under sections 428 to 430F (inclusive) of the Companies Act, an Award that is exercisable pursuant to Rule 0
above must be exercised within such period as such person remains so entitled or bound to acquire Shares and shall lapse and cease to be exercisable at the end of such period. 

  

	19.4	For the purposes of the preceding provisions of this Rule 0, a person shall be deemed to have Control of the Company if he and others acting in concert with him have together
obtained Control of it. 

  

	20.	STATUTORY RECONSTRUCTION 

  

	20.1	Subject to Rule 0 and Rule 0, if the court sanctions a compromise or arrangement proposed for the purposes of or in connection with a scheme for the reconstruction of the Company or
its amalgamation pursuant to section 425 of the Companies Act 1985, the Grantor (acting with the consent of the Committee) shall notify Awardholders that Awards may then be exercised to the extent (if any) permitted by Rule 0, within the period of 3
months (or such other longer period as the Grantor may specify) commencing on the date on which the compromise or arrangement becomes effective (or, if the Directors so determine, the earlier date when the court sanctions the compromise or
arrangement) and any Awards shall, to the extent not exercised, lapse and cease to be exercisable at the end of such period. 

  

	20.2	The Grantor (acting with the consent of the Committee) may permit Awards to be exercised subject to the court sanctioning the compromise or arrangement (so that such exercise takes
effect immediately after the court sanctions the compromise or arrangement but before such compromise or arrangement becomes effective), but only to the extent (if any) permitted by Rule 0 and, in this event, the Company shall notify Awardholders of
the period (of at least 14 days, ending no more than 14 days before the date on which the court is expected to sanction the compromise or arrangement) during which Awards may be so exercised. 

  

	20.3	Any entitlement to exercise an Award pursuant to a determination by the Grantor in accordance with Rule 0 shall be in addition to the Awardholder’s rights under Rule 0.

  

	21.	DEMERGER 

  

	21.1	Subject to Rule 0 if:- 

  

	 	21.1.1	notice is given to shareholders of the Company of a proposed demerger of the Company or of any Subsidiary; and 

  

	 	21.1.2	the Committee is of the opinion, and the Auditors have confirmed, that Awardholders would or might be substantially prejudiced by the proposed demerger; 

  

	  	the Company (acting with the consent of the Committee) may, as soon as practicable notify the Awardholders that Awards may then be exercised, within one month (or such longer period
as may be specified in such notice), to the extent (if any) permitted by Rule 0. 

  

 13 

	22.	WINDING-UP 

  

	22.1	If a notice is duly given of a resolution for the voluntary winding-up of the Company, the Company shall give notice thereof to all Awardholders. An Award may then be exercised to
the extent (if any) permitted by Rule 0 until the resolution is duly passed or defeated or the meeting concluded or adjourned sine die provided that any such exercise of an Award pursuant to this Rule 0 shall be conditional upon the said resolution
being duly passed. If such resolution is duly passed all Awards shall, to the extent that they have not been exercised, lapse immediately. 

  

	23.	REORGANISATION NOT INVOLVING A CHANGE OF CONTROL 

  

	23.1	If:- 

  

	 	23.1.1	in consequence of a demerger, reconstruction, reorganisation or amalgamation, the Company shall come under the Control of another company, or the business of the Company shall then
be carried on by another company, and in either case, the persons who owned the Ordinary Share Capital immediately before such change of control will immediately thereafter continue to have Control of the Company and will then own more than
50 per cent of the issued ordinary share capital of such other company (other than fixed-rate preference shares); and 

  

	 	23.1.2	an Awardholder is offered an Exchange of Awards 

  

	  	then:- 

  

	 	(a)	the provisions of Rules 0, 0 and 0 shall not apply; and 

  

	 	(b)	such Award shall lapse and cease to be exercisable at the end of the period of 21 days beginning with the date on which such invitation is made or, if later, the end of the period
in which the Awardholder may accept such invitation. 

  

	24.	EXTENT TO WHICH AWARDS MAY BE EXERCISED ON A CORPORATE TRANSACTION 

  

	24.1	The extent to which Awards may be exercised pursuant to Rule 0, 0, 0 or 0 shall be determined as follows:- 

  

	 	24.1.1	Awards may be exercised in respect of Award Shares that are Vested Shares before the relevant event; 

  

	 	24.1.2	unless the Committee determines otherwise in exceptional circumstances, Retention Awards may be exercised in respect of a proportion of Award Shares that were not Vested Shares
before the relevant event, that will be determined by applying a pro-rata reduction to the number of such Award Shares on the basis of the ratio that the number of complete months from the Award Date to the date of the relevant event bears to 36
months; 

  

	 	24.1.3	unless the Committee determines otherwise in exceptional circumstances, Performance Share Awards may be exercised in respect of a proportion of Award Shares that were not Vested
Shares before the relevant event that is determined by:- 

  

	 	(a)	determining the extent to which the Performance Target has been satisfied at the end of the Year or at the half year preceding such relevant event; and 

  

	 	(b)	by applying a pro-rata reduction to the number of Shares determined following the application of the Performance Target on the basis of the ratio that the number of complete months
from the Award Date to the date of the relevant event bears to 36 months. 

  

	 	24.1.4	In this Rule 0, the date of a “relevant event” shall be the date of a Change of Control pursuant to Rule 0, the giving of a notice pursuant to Rules 0, 0 or, 0 or such
other date as the Grantor (acting with the consent of the Committee) determines. 

  

 14 

 PART G: AMENDMENTS 
  

	25.	VARIATION OF SHARE CAPITAL 

  

	25.1	If the Ordinary Share Capital is altered by way of capitalisation or rights issue, sub-division, consolidation or reduction or there is any other variation in the share capital of
the Company (including payment of a capital dividend) or (at the discretion of the Committee) a demerger, the Committee may make such adjustment as it considers appropriate:- 

  

	 	25.1.1	to the number of Award Shares; and/or 

  

	 	25.1.2	the price, if any, payable by an Awardholder to obtain Award shares; and/or 

  

	 	25.1.3	if an Award has been exercised but no Shares have been allotted or transferred in satisfaction of an Award, to the number of Shares which may be so allotted or transferred

  

	  	PROVIDED THAT:- 

  

	 	(a)	except in the case of a sub-division, consolidation or a capitalisation issue, the Auditors shall give written confirmation that the adjustment is, in their opinion, fair and
reasonable; 

  

	 	(b)	the number of Shares as so adjusted has been rounded down to the nearest whole number; and 

  

	 	(c)	if the Grantor of an Award is not the Company, no such adjustment shall be made without the Grantor’s consent. 

  

	25.2	The Company shall as soon as reasonably practicable notify every Awardholder affected by an adjustment made pursuant to Rule 0 as soon as reasonably practicable.

  

	26.	ALTERATION OF THE PLAN 

  

	26.1	The Directors may at any time alter or add to any of the provisions of this Plan in any respect PROVIDED THAT no such alteration or addition shall be made to the advantage of
existing or new Awardholders to the provisions relating to eligibility to participate, the overall limitations on the issue of new Shares, the individual limitations on Awards granted under this Plan, the basis for determining Awardholders’
rights to acquire Shares, the adjustment of such rights in the event of variation of the Ordinary Share Capital, or this Rule 0, without the prior approval by ordinary resolution of the shareholders of the Company SAVE THAT the provisions of
this Rule 0 shall not apply to the extent that such alteration or addition is in the opinion of the Directors:- 

  

	 	26.1.1	a minor amendment which is necessary or appropriate to benefit the administration of this Plan; 

  

	 	26.1.2	to take account of any change in legislation; or 

  

	 	26.1.3	to obtain or maintain favourable tax, exchange control or regulatory treatment for existing or new Awardholders, the Company or any member of the Group; and

  

	 	26.1.4	if in relation to any Award the Grantor is not the Company, no alteration or addition shall be made to the terms of such Award without the approval of the Grantor.

  

	26.2	The Company shall, as soon as reasonably practicable, give details of any such alteration or addition to every Awardholder (if any) affected by it. 

  

 15 

 PART H: MISCELLANEOUS 
  

	27.	ALLOCATION OF FUNDS 

  

	27.1	The Company may from time to time pay, or procure the payment of sums by members of the Group, to the Trustee for the purpose of enabling the Trustee to acquire Shares to be
transferred in satisfaction of Awards. 

  

	27.2	The aggregate amount to be paid to the Trustee in any year shall be such amount (if any) as the Committee may determine SAVE THAT in the case of payments made by a
Subsidiary, the amount of any payment shall be determined by agreement between the Company and the directors of the Subsidiary. 

  

	28.	SERVICE OF DOCUMENTS 

  

	28.1	Except as otherwise provided in this Plan, any notice or document to be given by, or on behalf of, the Company, the Committee or other Grantor, the Trustee or any administrator of
this Plan to any person in accordance or in connection with this Plan shall be duly given:- 

  

	 	28.1.1	by sending it through the post in a pre-paid envelope to the address last known to the Company to be his address and, if so sent, it shall be deemed to have been duly given on the
date of posting; or 

  

	 	28.1.2	if he holds office or employment with any member of the Group, by delivering it to him at his place of work or by sending to him a facsimile transmission or e-mail addressed to him
at his place of work and if so sent it shall be deemed to have been duly given at the time of transmission SAVE THAT a notice or document shall not be duly given by e-mail unless that person is known by his employer company to have personal
access during his normal business hours to information sent to him by e-mail. 

  

	28.2	Any written notice or document so sent to an Eligible Employee or Awardholder shall be deemed to have been duly given notwithstanding that such person is then deceased (and whether
or not the Company or other Grantor has notice of his death) except where his Personal Representatives have supplied to the Company an alternative address to which documents are to be sent. 

  

	28.3	Any written notice or document to be submitted or given to the Grantor, the Company, the Committee or other Grantor, the Trustee or any administrator of this Plan in accordance or
in connection with this Plan may be delivered, sent by post, facsimile transmission or e-mail but shall not in any event be duly given unless it is actually received (or, in the case of an e-mail, opened) by the secretary of the Company or such
other individual as may from time to time be nominated by the Company and whose name and address is notified to Awardholders. 

  

	28.4	For the purposes of this Plan, an e-mail shall be treated as not having been duly made or received if the recipient of such e-mail notifies the sender that it has not been opened
because it contains, or is accompanied by a warning or caution that it could contain or be subject to, a virus or other computer programme which could alter damage or interfere with any computer software or e-mail. 

  

	29.	RIGHTS ATTACHING TO SHARES 

  

	29.1	An issue or transfer of Shares or of any interest in Shares under this Plan shall be subject to the Memorandum and Articles of Association of the Company, the Listing Rules, the
Model Code or any other requirement or guidance issued by the UK Listing Authority or the London Stock Exchange and which relates to dealings in Shares by directors or employees of any member of the Group and to any necessary consents of any
government or any other authorities (whether in the United Kingdom or overseas) under any enactments or regulations from time to time in force. It shall be the responsibility of the Awardholder to do all such things as may be necessary to obtain or
obviate the necessity for any such consent. 

  

	29.2	All Shares issued or transferred under this Plan shall rank equally in all respects with the Shares for the time being in issue, save as regards any rights attaching to such Shares
by reference to a record date prior to the date of such issue or transfer. 

  

 16 

	30.	STAMP DUTY 

  

	  	Any stamp duty or stamp duty reserve tax payable in respect of a transfer of Shares to or at the direction of a Awardholder (other than stamp duty or stamp duty reserve tax payable
on a sale of Shares by the Grantor at the direction of the Awardholder) shall be paid by the Company or, if different, the Grantor (who shall be reimbursed by the Company). 

  

	31.	JURISDICTION 

  

	31.1	This Plan shall be governed by and construed in all respects in accordance with English law. 

  

	31.2	The Courts of England shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning an Award and any matter arising from or in relation to this Plan.

  

	32.	THIRD PARTY RIGHTS 

  

	  	Except as otherwise expressly stated to the contrary, neither this Plan nor the making of any Award nor the Contracts (Rights of Third Parties) Act 1999 shall have the effect of
giving any third party any rights under this Plan and that Act shall not apply to this Plan or to the terms of any Award under it. 

  

 17 

 SCHEDULE 1 
  
 CSR plc 
  
 SHARE AWARD PLAN 
  
 PERFORMANCE TARGET 
  
 for awards made in the calendar year 2005 
  
 The following Performance Target shall apply to the Awards made in 2005. The Performance Period shall be from [1 January 2005] to [31 December 2007]

  

	1.	DEFINITIONS 

  

	1.1	In this Performance Target, the following words and expressions shall have the following meanings: 

  

			
	“Comparator Group”	  	subject to clause 3 below, the companies listed in the Appendix hereto and “member of the Comparator Group” shall be construed accordingly;
	“Net Return Index”	  	An index calculated to reflect movements in share price over a period and dividends reinvested on a net basis (without any associated tax credit) in shares on the ex-dividend
date;
	“Plan”	  	the CSR plc Share Award Plan
	“Total Shareholder Return” in relation to a company	  	  TSR2  minus 1 where:
  TSR1 
  
 TSR1 in relation to a company is its average Net
Return Index over each trading day during the three months ending immediately prior to the beginning of the Performance Period;
  
 TSR2 in relation to a company is its average Net Return Index over each trading day during the last three months of the Performance Period (or the whole of the
Performance Period where it is less than three months).

  

	1.2	All the words and expressions defined in the rules of the Plan shall bear the same meaning when used in this Performance Target. 

  

	2.	LIMITATIONS ON EXERCISE OF THE PERFORMANCE SHARE AWARD 

  

	2.1	The Performance Target that applies to a Performance Share Award:- 

  

	 	2.1.1	compares the Company’s Total Shareholder Return to that of the members of the Comparator Group as set out in Clause 2.2 below; AND 

  

	 	 2.1.2
	 requires that the Committee is satisfied that there has been a sustained improvement in the Company’s underlying
financial performance over the Performance Period (2). 

  
  

	  	No Award Shares shall vest unless both the conditions of the Performance Target have been met to the satisfaction of the Committee. 

  

	(2)	In the 2005 AGM circular a commitment was given to disclose in the Remuneration Report for the year of vesting those factors considered by the Committee in relation to underlying
financial performance. 

  

 18 

	2.2	The number of Award Shares which the Participant can acquire pursuant to a Performance Share Award is calculated as follows (subject to clause 2.5 below): 

 

			
	 Position at which the Company is ranked
	  	 % of Award Shares exercisable

	 Upper Quartile or higher
	  	100%
	 Between Median and Upper Quartile
	  	Pro rata between 30% and 100%
	 Median
	  	30%
	 Below Median
	  	Nil

  

	  	For the avoidance of doubt, 

  

	 	 2.2.1
	 the median return will be found by applying the formula  n/2 + 0.5; 

  

	 	 2.2.2
	 the upper quartile return will be found by applying the formula  n/
4 + 0.5; 

  

	 	2.2.3	“n” is the number of companies in the Comparator Group at the date the Performance Target is calculated 

  

	 	2.2.4	if the Company attains a ranking between the median and upper quartile positions, the extent to which Awards become exercisable will be calculated by interpolating on a
straight-line basis between the comparator companies with returns closest to the Company. 

  

	2.3	If the Performance Target is not satisfied in full at the end of the Performance Period, any portion of the Performance Share Award that has not become exercisable as a consequence
of the Performance Target not being met in full shall forthwith lapse. 

  

	2.4	For these purposes a smaller negative Total Shareholder Return shall rank higher than a bigger negative Total Shareholder Return. 

  

	2.5	Where the operation of clause 2.2 produces a fraction of a share, this shall be rounded down to the nearest whole share. 

  

	3.	CALCULATION OF TOTAL SHAREHOLDER RETURN 

  

	3.1	As soon as practicable following the end of the Performance Period, the Committee shall calculate the Company’s Total Shareholder Return for the Performance Period and the
Total Shareholder Return for each member of the Comparator Group, rank the members of the Comparator Group by Total Shareholder Return in descending order and specify the Company’s position in such ranking. The Committee shall, having completed
such calculation, inform the Participant of the extent to which (if at all) the Performance Target has been satisfied. Such determination shall be final and binding. 

  

	3.2	The Committee may make such adjustments as it considers appropriate to take account of any factor which it considers to be relevant including but not limited to any intervening
capital reorganisation of the Company or of any member of the Comparator Group, including, without limitation, any capitalisation issue, rights issue, sub-division or consolidation of share capital, reduction of capital or exempt distribution within
the meaning of Section 213 of the Income and Corporation Taxes Act 1988, the suspension of the Company’s or a member of the Comparator Group’s shares from the Stock Exchange Daily Official List (or overseas equivalent); or the
takeover of any member of the Comparator Group and the removal of its shares from the Stock Exchange Daily Official List (or overseas equivalent); or the de-merger of or from any member of the Comparator Group. 

  

	3.3	 If any member of the Comparator Group ceases to exist, its shares cease to be listed in the Official List of the London Stock Exchange (or overseas equivalent), or
otherwise is so changed as to make it, in the opinion of the Committee, unsuitable as a member of the Comparator Group, the Committee may in its absolute discretion: retain such company in the Comparator Group; exclude that company; or include a

  

 19 

	 	 
substitute for that company when calculating the Total Shareholder Return for any member of the Comparator Group for the Performance Period. The Committee
shall notify Awardholders as soon as reasonably practicable of any change in the Comparator Group. 

  

	3.4	The calculations of the Committee shall not be open to question and the decision of the Committee regarding the calculation of TSR, the companies included within the Comparator
Group and the ranking of the members of the Comparator Group shall be final and binding. In the absence of fraud the Committee shall be under no liability to any person by reason thereof or of anything done or omitted by them for the purposes
thereof or in connection therewith. 

  

	3.5	If after the Grant Date of the Performance Share Award an event occurs of an exceptional nature which means that, in the opinion of the Committee, a different condition would be a
fairer measure of the Company’s performance, the Committee may amend any of the provisions of this Performance Target PROVIDED THAT such amendment may only be one which the Committee considers will result in the Performance Target being
materially no less difficult to satisfy than the original condition when it was set. The Committee shall exercise the powers conferred on it above in good faith and not arbitrarily or capriciously. 

  

	3.6	If after the Grant Date of the Performance Share Award, the Committee considers that the use of an alternative methodology for calculating the Total Shareholder Return would be more
convenient, the Committee may amend such methodology PROVIDED THAT such amendment may only be one which the Committee considers will result in the relevant Performance Target being materially no less difficult to satisfy than it would have been
without such amendment. 

  

	4.	CURTAILMENT OF PERFORMANCE PERIOD 

  

	4.1	If an event as described in Rule 16.1 (Cessation of Employment) or Rules 19 to 22 (Corporate Events) of the Plan occurs then:- 

  

	 	4.1.1	the Committee, as constituted immediately before that event, shall determine whether the Performance Target has been met; 

  

	 	4.1.2	the Performance Period shall end [on the 30 June or 31 December] immediately preceding the date of the event, unless determined otherwise by the Committee.

  

 20 

 APPENDIX 1 
  
 2005 COMPARATOR GROUP 
  

							
	1.	  	ARM Holdings plc	 	21.	  	National Semiconductor Corporation
				
	2.	  	ASE Test Inc.	 	22.	  	Nokia Oyj
				
	3.	  	ASML Holding NV	 	23.	  	Nordic Semiconductor ASA
				
	4.	  	Analog Devices Inc	 	24.	  	PMC-Sierra Inc.
				
	5.	  	Apple Computer, Inc.	 	25.	  	Plantronics Inc
				
	6.	  	Atheros Communications, Inc	 	26.	  	QUALCOMM Incorporated
				
	7.	  	austriamicrosystems AG	 	27.	  	Research in Motion Ltd
				
	8.	  	Bookham, Inc.	 	28.	  	SiRF Technology, Holdings Inc
				
	9.	  	Broadloom Corporation	 	29.	  	STMicroelectronics N.V.
				
	10.	  	Cirrus Logic Inc.	 	30.	  	Sigmatel, Inc.
				
	11.	  	Conexant Systems, Inc	 	31.	  	Silicon Laboratories Inc
				
	12.	  	Dell Inc.	 	32.	  	Skyworks Solutions, Inc.
				
	13.	  	Dialog Semiconductor Plc	 	33.	  	Spirent plc
				
	14.	  	GN Store Nord A/S	 	34.	  	Synopsys Inc.
				
	15.	  	Hewlett-Packard Company	 	35.	  	TTP Communications plc
				
	16.	  	Infineon Technologies AG	 	36.	  	Taiwan Semiconductor Manufacturing Company Limited
				
	17.	  	Intel Corporation	 	37.	  	Teradyne Inc.
				
	18.	  	Logitech International SA	 	38.	  	Texas Instruments Incorporated
				
	19.	  	Marvell Technology Group Ltd	 	39.	  	Wavecom SA
				
	20.	  	Motorola, Inc.	 	40.	  	Wolfson Microelectronics plc

  

 21 

 SCHEDULE 2 
  
 CONTINGENT SHARE AWARDS 
  

	1.	The Committee may determine that Awards may be granted under the Rules of the Plan as varied by this Appendix 1. 

  

	2.	Awards granted pursuant to this Appendix 1 will take the form of Contingent Share Awards being a conditional right to receive a number of Shares (which may be newly issued Shares
where the Committee so determines at the Award Date), subject to the terms and conditions of the Plan as varied by this Appendix 1. Contingent Share Awards may be granted as either Retention Awards or Performance Share Awards.

  

	3.	Rule 0 of the Plan (Exercise of Awards) shall not apply to an Award granted pursuant to this Appendix, and instead the following Rule shall apply: 

  

	  	“Transfer of Award Shares”. 

  

	  	“As soon as reasonably practicable after Award Shares become Vested Shares, the Grantor shall procure the issue or transfer of such Shares to the Awardholder (or to his
nominee).” 

  

	4.	In relation to an Award granted pursuant to this 0, Rule 0 (Cessation of Employment) shall be construed so that if an Awardholder ceases to hold office or employment within the
Group for an reason specified in that Rule then the Grantor shall procure the issue or transfer to the Awardholder as soon as reasonably practicable after the date he so ceases of any Award Shares that are:- 

  

	 	4.1	Vested Shares at the date he so ceases; and 

  

	 	4.2	are additionally deemed to be Vested Shares pursuant to Rule 0 and Rule 0. 

  

	5.	In relation to an Award granted pursuant to this 0, Rules 0, 0, 0 and 0 shall be construed so that the Grantor shall procure the issue or transfer to the Awardholder (or to his
nominee) of a number of Award Shares determined in accordance with Rule 0:- 

  

	 	5.1	as soon as reasonably practicable following the Change of Control where Rule 0 applies; 

  

	 	5.2	as soon as reasonably practicable following the court sanction of the scheme of arrangement where Rule 0 applies; and 

  

	 	5.3	as soon as reasonably practicable following the giving of a notice where Rules 0 or 0 apply. 

  

 22 

 APPENDIX 2 
  

TO 
  
 CSR SHARE AWARD PLAN 
  
 (for California residents only, to the extent required by Section 25102(o)) 
  
 Adopted November 28, 2008 
  
 This Appendix 2 to the CSR Share Award Plan shall apply only to the Awardholders who are residents of the State of California and who are receiving an
Award under the Plan. Capitalized terms contained herein shall have the same meanings given to them in the Plan, unless otherwise provided by this Appendix 2. Notwithstanding any provisions contained in the Plan to the contrary and to the extent
required by applicable laws, the following terms shall apply to all Awards granted to residents of the State of California with effect from the adoption of this Appendix 2, until such time as the Directors amend this Appendix 2 or the Directors
otherwise provide. 
  

	1.	Definitions 

  

					
	1.1	  	“Cause”	  	(i) An act of dishonesty made by Awardholder in connection with Awardholder’s responsibilities as an employee, (ii) Awardholder’s conviction of, or plea of nolo contendere to, a
felony or any crime involving fraud, embezzlement or any other act of moral turpitude, (iii) Awardholder’s gross misconduct, (iv) Awardholder’s unauthorized use or disclosure of any proprietary information or trade secrets of the
Group or any other party to whom Awardholder owes an obligation of nondisclosure as a result of Awardholder’s relationship with the Group, (v) Awardholder’s willful breach of any obligations under any written agreement or covenant
with the Company, or (vi) Awardholder’s continued failure to perform his or her employment duties after Awardholder has received a written demand of performance from the Group which specifically sets forth the factual basis for the
Group’s belief that Awardholder has not substantially performed his or her duties.
			
	1.2	  	“Disability”	  	Total and permanent disability as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended.
			
	1.3	  	“Section 25102(o)”	  	Section 25102(o) of the California Corporations Code.

  

	2.	The term of each Award shall be stated in the Award certificate or deed, provided, however, that the term shall be no more than ten (10) years from the date of grant thereof.

  

	3.	Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or the laws of descent and distribution, and may be exercised
during the lifetime of the Awardholder, only by the Awardholder. 

  

	4.	If an Awardholder ceases to hold office or employment with the Group for other than Cause, Disability, or death, such Awardholder may exercise his or her Award granted as an option
within such period of time as specified in the Award certificate or deed, which shall not be less than thirty (30) days following the date of the Awardholder’s termination, to the extent that the Award is vested on the date of termination
or as accelerated under such circumstances as determined by the Committee as permitted by the Plan (but in no event later than the expiration of the term of the Award as set forth in the Award certificate or deed and as subject to Appendix 3 of the
Plan). 

  

	5.	If an Awardholder ceases to hold office or employment with the Group for Cause, his or her Award will immediately cease to be exercisable and will terminate on the date the
Awardholder ceases to hold office or employment with any member of the Group. 

	6.	If an Awardholder ceases to hold office or employment with the Group as a result of the Awardholder’s Disability, the Awardholder may exercise his or her Award granted as an
option within such period of time as specified in the Award certificate or deed, which shall not be less than six (6) months following the date of the Awardholder’s termination, to the extent the Award is vested on the date of termination
or as accelerated under such circumstances as determined by the Committee as permitted by the Plan (but in no event later than the expiration of the term of such Award as set forth in the Award certificate or deed and as subject to Appendix 3 of the
Plan). 

  

	7.	If an Awardholder dies while he or she holds office or employment with the Group, any Award granted as an option may be exercised within such period of time as specified in the
Award certificate or deed, which shall not be less than six (6) months following the date of the Awardholder’s death, to the extent the Award is vested on the date of death or as accelerated under such circumstances as determined by the
Committee as permitted by the Plan (but in no event later than the expiration of the term of such Award as set forth in the Award certificate or deed and as subject to Appendix 3 of the Plan) by the Awardholder’s designated beneficiary,
personal representative, or by the person(s) to whom the Award is transferred pursuant to the Awardholder’s will or in accordance with the laws of descent and distribution. 

  

	8.	No Award shall be granted to a resident of California more than ten (10) years after the earlier of the date of adoption of the Plan or the date the Plan is approved by the
stockholders. 

  

	9.	The Directors shall make adjustments to the number and class of Shares of common stock that may be delivered under the Plan and/or the number, class, and price of Shares covered by
each outstanding Award to the extent required by Section 25102(o). 

  

	10.	This Appendix 2 shall be deemed to be part of the Plan and the Directors shall have the authority to amend this Appendix 2 in accordance with Rule 26 of the Plan.

  

 2 

 APPENDIX 3 
  

TO 
  
 CSR SHARE AWARD PLAN 
  
 (for United States taxpayers only) 
  
 Adopted November 28, 2008 
  
 This Appendix 3 to the CSR Share Award Plan shall apply only to the Awardholders who are taxpayers in the United States and who are receiving an Award under the Plan. Capitalized terms contained herein shall have the same meanings given to
them in the Plan, unless otherwise provided by this Appendix 3. Notwithstanding any provisions contained in the Plan to the contrary and to the extent required by applicable laws, the following terms shall apply to all Awards granted to United
States taxpayers with effect from the adoption of this Appendix 3, until such time as the Directors amend this Appendix 3 or the Directors otherwise provide. 
  

	1.	Each Award, or any vested portion thereof, shall be exercised by December 31 of the calendar year in which such Award, or portion thereof, vests, subject to earlier termination
as set forth in the Award agreement. If not so exercised, such Award, or any vested portion thereof, shall lapse. 

  

	2.	Notwithstanding anything in the Plan or this Appendix 3 to the contrary, if the vesting of the balance, or some lesser portion of the balance, of any Award granted with an exercise
price per Share that is less than 100% of the closing price of a Share (as derived from the Daily Official List) for the day immediately preceding the date of grant is accelerated pursuant to Rule 16.3 or Rule 16.4 in connection with an Awardholder
ceasing to hold office or employment with the Group (provided that such cessation is a “separation from service” within the meaning of Section 409A, as determined by the Company), other than due to death, and if the Awardholder is a
“specified employee” within the meaning of Section 409A at the time of such “separation from service” then the issuance of the Shares subject to such Award otherwise payable on or within the six (6) month period
following the Awardholder’s separation from service instead will be paid on the date that is six (6) months and one (1) day following the date of the Awardholder’s “separation from service”, unless the Awardholder dies
following his or her “separation from service”, in which case, the Shares will be issued to the Awardholder’s estate as soon as practicable following his or her death. For purposes of this Appendix 3, “Section 409A” means
Section 409A of the U.S. Internal Revenue Code of 1986, as amended, and any final Treasury Regulations and other Internal Revenue Service guidance thereunder, as each may be amended from time to time. 

  

	3.	For purposes of this Appendix 3, Rule 16.3 will be replaced in its entirety as follows: 

  

	  	Where an Awardholder who holds a Retention Award ceases to hold office or employment within the Group in any of the circumstance specified at Rule 16.1 above (with the exception of
retirement), the extent to which any Award Shares subject to such Retention Award that are not then Vested Shares may be deemed to be Vested Shares shall (unless the Committee determines otherwise in exceptional circumstances) be determined by
applying a pro-rata reduction to the number of such Award Shares on the basis of the ratio that the number of complete months from the Award Date to the date of so ceasing to hold office or employment bears to the original number of months required
to have lapsed before an option may fully vest. 

  

	  	 If Rule 16.1 includes retirement, then, as of the date an Awardholder who holds a Retention Award becomes eligible for retirement based on the then applicable
retirement policy, the extent to which any such Award Shares subject to such Retention Award that are not Vested Shares immediately prior to such date shall, as of such date, be deemed to be Vested Shares shall (unless the Committee determines
otherwise in exceptional circumstances) be determined by applying a pro-rata reduction to the number of such Award Shares on the basis of the ratio that the number of complete months from the Award Date to the date the Awardholder becomes eligible
for retirement to the original number of months required to have lapsed before an option may fully vest. The remaining Award Shares shall vest monthly thereafter as 

	 	 
to the ratio of one month over the original number of months required to have lapsed before an option may fully vest (e.g., 1/36th for a three-year vesting period) of the Award Shares until such Awardholder ceases to hold office or employment with the Group. 

 

	4.	For purposes of this Appendix 3, Rule 16.4 will be replaced in its entirety as follows: 

  

	  	Where an Awardholder who holds a Performance Share Award ceases to hold office or employment within the Group in any of the circumstances specified at Rule 16.1 (with the exception
of retirement), the extent to which any Award Shares subject to such Performance Share Award that are not then Vested Shares may be deemed to be Vested Shares shall be determined as follows (unless the Committee determines otherwise in exceptional
circumstances): 

  

	 	16.4.1	by determining the extent to which the Performance Target has been satisfied at the end of the Year or at the half-year preceding such event; and 

  

	 	16.4.2	by applying a pro-rata reduction to the number of Shares determined following the application of the Performance Target on the basis of the ratio that the number of complete months
from the Award Date to the date of so ceasing to hold office or employment bears to the original number of months required to have lapsed before an option may fully vest. 

  

	  	With respect to Performance Share Awards that are outstanding as of the date of this Appendix 3, where an Awardholder who holds such a Performance Share Award becomes eligible for
retirement based on the then applicable retirement policy, the extent to which any Award Shares subject to such Performance Share Award that are not Vested Shares immediately prior to such date shall, as of such date, be deemed to be Vested Shares
shall be determined as follows (unless the Committee determines otherwise in exceptional circumstances): 

  

	 	16.4.3	by determining the extent to which the Performance Target has been satisfied at the end of the Year or at the half-year preceding such event; and 

  

	 	 16.4.4
	 by applying a pro-rata reduction to the number of Shares determined following the application of the Performance Target
on the basis of the ratio that the number of complete months from the Award Date to the date the Awardholder becomes eligible for retirement to the original number of months required to have lapsed before an option may fully vest. The remaining
Award Shares shall vest monthly thereafter as to the ratio of one month over the original number of months required to have lapsed before an option may fully vest (e.g., 1/36th for a three-year vesting period) of the Award Shares until such Awardholder ceases to hold office or employment with the Group. 

  

	5.	It is the intent of this Appendix 3 to comply with the requirements of Section 409A so that none of the Awards provided under this Appendix 3 or Shares issuable thereunder will
be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. 

  

	6.	This Appendix 3 shall be deemed to be part of the Plan and the Directors shall have the authority to amend this Appendix 3 in accordance with Rule 26 of the Plan.

  

 2CSR Share Option Plan

 Exhibit 10.3 
   
  
  
 RULES OF THE 
 CSR plc SHARE OPTION
PLAN 
  
  
  
 Approved by the Board on 26 February 2004 
  
 UK Approved Addendum approved by the Inland Revenue 
 on 26th February under reference X22663/IDA 
  
 Amended by shareholders on 4 May 2005 

 CONTENTS 
  

					
	 1
	  	DEFINITIONS	  	
			
	 2
	  	GRANT OF OPTIONS	  	
			
	 3
	  	NUMBER OF SHARES IN RESPECT OF WHICH OPTIONS MAY BE GRANTED	  	
			
	 4
	  	RIGHTS OF EXERCISE AND LAPSE OF OPTIONS	  	
			
	 5
	  	TAKEOVER, RECONSTRUCTION AND WINDING-UP	  	
			
	 6
	  	MANNER OF EXERCISE	  	
			
	 7
	  	ISSUE OR TRANSFER OF SHARES	  	
			
	 8
	  	ADJUSTMENTS	  	
			
	 9
	  	ADMINISTRATION	  	
			
	 10
	  	ALTERATIONS	  	
			
	 11
	  	LEGAL ENTITLEMENT	  	
			
	 12
	  	GENERAL	  	
		
	 Appendix 1—UK APPROVED ADDENDUM
	  	

  
  

 RULES OF THE CSR plc SHARE OPTION PLAN 
  

	1.	DEFINITIONS 

  

	1.1	In this Plan, the following words and expressions shall have, where the context so admits, the meanings set forth below. 

  

			
	 “Appropriate Period”
	  	The meaning given by Paragraph 26(3) of Schedule 4 to ITEPA.
		
	 “Base Salary”
	  	The higher of:-
		
		  	 (A)   the annual rate of the Participant’s remuneration (exclusive of bonuses and commissions and exclusive of
benefits-in-kind) from all Participating Companies at the Date of Grant; and

		
		  	 (B)   the remuneration (exclusive of bonuses and commissions and exclusive of benefits-in-kind) paid or payable to the
Participant by all Participating Companies in, or in respect of, the 12 months immediately preceding the Date of Grant

		
	 “Auditors”
	  	The auditors of the Company for the time being or in the event of there being joint auditors such one of them as the Board shall select
		
	 “Board”
	  	The board of directors for the time being of the Company or a duly authorised committee thereof
		
	 “Committee”
	  	 Either:-
  
 (A)   in relation to the grant of Options to executive directors of the Company, the remuneration committee; or

  
 (B)   in relation to
the grant of Options to other employees, such other duly authorised committee of the Board as may be appointed from time to time

		
	 “Company”
	  	CSR plc registered in England and Wales under No. 04187346
		
	 “Control”
	  	The meaning given by Section 840 of the Taxes Act
		
	 “Daily Official List”
	  	The register of listed securities and the prices of transactions published by the London Stock Exchange
		
	 “Date of Grant”
	  	The date on which an Option is granted
		
	 “Dealing Day”
	  	Any day on which the London Stock Exchange is open for the transaction of business
		
	 “Eligible Employee”
	  	 Any person who at the Date of Grant is:-
  
 (A)   an employee of a Participating Company, who is not a director; or
  
 (B)   an executive director of a
Participating Company who devotes substantially the whole of his working time to the business of a Participating Company; and
  
 (C)   is more than six months from his anticipated date of retirement

		
	“Employees’ Share Scheme”	  	The meaning given by Section 743 of the Companies Act 1985.
		
	“Executive Share Option Plan”	  	A share option plan in which participation is discretionary (for the avoidance of doubt, excluding any Sharesave Plan)

			
		
	 “Grant Period”
	  	The period of 42 days commencing on the day after any of the following days:-
		
		  	 (A)   the day on which the Plan is adopted by the Company;

		
		  	 (B)   the day on which the UK Approved Addendum is approved by the Inland Revenue;

		
		  	 (C)   the day immediately following the day on which the Company makes an announcement of its results for the last preceding
financial year, half-year or other period;

		
		  	 (D)   any day on which the Grantor resolves that exceptional circumstances exist which justify the grant of
Options;

		
		  	 (E)   any day on which any change to the legislation affecting Executive Share Option Plans
is proposed or made;
  
 (F)    the date of commencement of an Eligible Employee’s employment with a Participating Company provided that the Eligible Employee is not already employed by a Participating company, but only in respect of that
Eligible Employee; or
  
 (G)   the day on which Listing occurs
  
 PROVIDED THAT if by reason of primary or secondary legislation, regulation or government directive or by reason of any agreement to which the Company is or maybe a party, the Grantor is restricted from granting Options under the Plan during
the period specified above the relevant Grant Period shall be 42 days commencing on the day after the restriction is lifted and PROVIDED FURTHER THAT no Options shall be granted under the UK Approved Addendum prior to the date on which such Addendum
is formally approved by the Inland Revenue

		
	 “Grantor”
	  	The Committee (acting on behalf of the Company) or the Trustees acting on the recommendation of, or with the consent of, the Committee, as the case may be
		
	 “Group Member”
	  	A Participating Company or a body corporate which is (within the meaning of Section 736 of the Companies Act 1985) the Company’s holding company or a Subsidiary of the Company’s
holding company or any other body corporate nominated by the Board for this purpose which is not under the control of any single person, but is under the control of two or more persons, one of whom being the Company or the Company’s holding
company and in relation to which the Company or, as the case may be, the Company’s holding company is able (whether directly or indirectly) to exercise 20% or more of its equity voting rights
		
	 “ITEPA”
	  	The Income Taxes (Employment and Pensions) Act 2003
		
	 “Listing”
	  	The first grant of permission to deal in all or any of the ordinary share capital of the Company on the Alternative Investment Market of the London Stock Exchange or the first admission of
any part of the ordinary share capital of the Company to trading on the London Stock Exchange or any other Recognised Investment Exchange
		
	 “London Stock Exchange”
	  	London Stock Exchange plc or any successor body carrying on the business of London Stock Exchange plc

			
	 “Market Value”
	  	In relation to a Share on any day:-
		
		  	 (A)   (i) in respect of an Option granted under the UK Approved Addendum, if and so long
as the Date of Grant is the date of Listing, the Flotation Price, as agreed in advance with the Inland Revenue or such other price as agreed with the Inland Revenue;
  
 (ii)    in respect of an Option granted under the Plan (excluding Options
grants under the UK Approved Addendum), if and so long as the Date of Grant is the date of Listing, the Flotation Price;
  
 and thereafter

		
		  	 (B)   if and so long as the Shares are listed on the London Stock Exchange, their closing middle market quotation (as
derived from the Daily Official List) for the immediately preceding Dealing Day, or if the Grantor determines, the average of the closing middle market quotations over the three immediately preceding Dealing Days, or such other price over such
period as may be agreed in writing with the Inland Revenue (provided that Options are granted within 30 days of the first day by reference to which the Market Value was calculated); or

		
		  	 (C)   in any other case, their market value as determined in accordance with Part VIII of the Taxation of Chargeable Gains
Act 1992 or similar non-UK legislation

		
	 “Option”
	  	A right to acquire Shares under the Plan which is either subsisting or is proposed to be granted
		
	 “Option Period”
	  	The period commencing on the Date of Grant and terminating on the latest date determined by reference to Rule 2.6.4
		
	 “Option Price”
	  	The price per Share, as determined by the Grantor at the Date of Grant, at which an Eligible Employee may acquire Shares upon the exercise of an Option granted to him being not less than the
Market Value of a Share (on the Date of Grant), but subject to any adjustment pursuant to Rule 8
		
	 “Participant”
	  	Any Eligible Employee to whom an Option has been granted, or (where the context so admits) the personal representative of any such person
		
	 “Participating Company”
	  	 (A)   The Company; and
  
 (B)   any other company which is under the Control of the Company, is a Subsidiary
of the Company except one which the Grantor has designated shall not be a Participating Company ;and
  
 (C)   any other Group Member which is for the time being designated by the Board to be a Participating Company
being (subject in the case of Options granted under the UK Approved Addendum to the prior consent of the Inland Revenue having been obtained):-
  
 (a)    a jointly owned company which:-
  
 (i)     is not under the Control of any single person; and
  
 (ii)    is under the joint
Control of the Company and one other person; and
  
 (iii)  is not a participating company in any Executive Share Option Plan established by any other company; or
  

			
		  	 (b)    a company which is under the Control of a jointly owned company which
satisfies the conditions in paragraph (a) above and which itself satisfies the conditions in sub-paragraph (iii)
  
 PROVIDED that if any company which has been designated as a Participating Company under this sub-paragraph (C) ceases to satisfy any of the conditions in this
sub-paragraph, it shall immediately cease to be a Participating Company unless as a consequence of such cessation it becomes under the Control of the Company

		
	 “Plan”
	  	The CSR plc Share Option Plan in its present form or as from time to time amended in accordance with the provisions hereof
		
	“Recognised Investment Exchange”	  	The meaning given by Section 841(1) of the Taxes Act
		
	 “Retirement”
	  	Retirement on or after the Participant’s normal retirement date
		
	 “Rules”
	  	The rules of the Plan as amended from time to time
		
	 “Share”
	  	A fully paid ordinary share in the capital of the Company
		
	 “Sharesave Plan
	  	A savings related share option plan approved under Schedule 3 to ITEPA
		
	 “Subsidiary”
	  	The meaning given by Section 736 of the Companies Act 1985
		
	 “Tax Liability”
	  	 A liability to account for any tax, national insurance, social security or other levy in respect of an Option by the Company or any Participating
Company (“the Relevant Company”), whether by reason of grant, exercise or otherwise, including for the avoidance of doubt:-
  
 (A)   any liability to pay secondary Class 1 National Insurance Contributions for which an agreement or election
has been entered into under paragraph 3A or 3B of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (“National Insurance Election”); and
  
 (B)   any liability arising after termination of a Participant’s employment for
whatever reason and which may arise or be incurred in any jurisdiction whatever, and by the law of the same jurisdiction may or shall be recovered from the person entitled to the Option
  
 but subject to (A) above, not including any secondary Class 1 National Insurance Contributions

		
	 “Taxes Act”
	  	The Income and Corporation Taxes Act 1988
		
	 “Trustees”
	  	The trustee or trustees for the time being of any employee benefit trust established for the benefit of all or substantially all of the Eligible Employees
		
	“UK Approved Addendum”	  	That part of the Plan, comprising the UK Approved Addendum attached hereto, which has been approved by the UK Inland Revenue in accordance with Schedule 4 to ITEPA, in its present form or as
from time to time amended in accordance with the provisions hereof

  

	1.2	Words and expressions not otherwise defined herein have the same meaning they have in the Taxes Act or ITEPA (as the case may be). 

  

	1.3	Where the context so admits or requires words importing the singular shall include the plural and vice versa and words importing the masculine shall include the feminine.

	1.4	Reference in the Rules of the Plan to any statutory provisions are to those provisions as amended, extended or re-enacted from time to time, and shall include any regulations made
thereunder. The Interpretation Act 1978 shall apply to these Rules on the same basis as if they were an Act of Parliament. 

  

	1.5	The headings in the Rules of the Plan are for the sake of convenience only and should be ignored when construing the Rules. 

  

	2.	GRANT OF OPTIONS 

  

	2.1	The Grantor may during a Grant Period grant Options at the Option Price to Eligible Employees at its absolute discretion. 

  

	2.2	The grant of an Option may be conditional upon an Eligible Employee agreeing to enter into a National Insurance Election (or its overseas equivalent to the extent this is lawful).

  

	2.3	The Grantor may at the Date of Grant impose such condition or conditions on the exercise of an Option as it may determine. Such conditions:- 

  

	 	2.3.1	must be objective and stated in writing at the Date of Grant; and 

  

	 	2.3.2	must not be waived, varied or amended by the Grantor unless in accordance with the terms of such conditions or, where any waiver, variation or amendment is at the discretion of the
Grantor, it shall only be exercised in a manner which the Grantor has determined fair and reasonable and if events happen which cause the Grantor, acting fairly and reasonably, to consider that the waived, varied or amended condition would be
appropriate and would result in the waived, varied or amended condition being not more or less difficult to satisfy than the condition as it existed immediately prior to such waiver, variation or amendment. 

  

	2.4	The Market Value of Shares which may be placed under option to any Eligible Employee in respect of any financial year of the Company shall not exceed 200% of that Eligible
Employee’s Base Salary save that this figure shall be up to 400% where the grant of the Option in question is made at the time of the recruitment of the individual concerned. 

  

	2.5	The grant of an Option or the delivery of any shares following its exercise shall be subject to obtaining any approval or consent required under any applicable laws, regulations of
governmental authority and the requirements of the London Stock Exchange and any other securities exchange on which the Shares are traded. 

  

	2.6	The grant of an Option shall be evidenced by execution of a deed on behalf of the Company which deed may be in respect of an individual Option or any number of Options granted at
the same time. As soon as practicable after grant, the Grantor shall issue to each Participant a certificate in respect of the Option which may be under the autographic or facsiminal signature of an officer of the Company and in such form as the
Grantor may from time to time prescribe. Such certificate must state: 

  

	 	2.6.1	the number of Shares over which the Option has been granted to the Participant; 

  

	 	2.6.2	the Option Price; 

  

	 	2.6.3	any condition or conditions imposed pursuant to Rule 2.3 on the exercise of the Option; 

  

	 	2.6.4	the first date on which any part of the Option becomes capable of exercise and any subsequent dates on which any remaining part of the Option becomes capable of exercise;

  

	 	2.6.5	the Date of Grant; and 

  

	 	2.6.6	the date on which the Option will lapse pursuant to Rule 4.3.1 or any earlier date on which the Grantor determines that the Option should lapse. 

  

	2.7	No payment by the Participant shall be required on the grant of an Option. 

  

	2.8	Subject to the rights of exercise by the Participant’s personal representatives pursuant to Rule 4.2.1, every Option shall be personal to the Participant to whom it is granted
and shall not be transferable or in any way alienable without the prior written agreement of the Grantor and such transfer shall be subject to such conditions as the Board may prescribe at that time. 

	2.9	A Participant may surrender his Option in whole or in part within the period of 30 days immediately following the Date of Grant and if an Option, or any part of an Option, is so
surrendered, it shall be deemed for all purposes not to have been granted. 

  

	3.	NUMBER OF SHARES IN RESPECT OF WHICH OPTIONS MAY BE GRANTED 

  

	3.1	The number of Shares which may be allocated under the Plan on any day shall not, when added to the aggregate of the number of Shares which have been allocated during that and the
previous nine years under the Plan and under any other Employees’ Share Scheme (including a sharesave plan) adopted by the Company, exceed such number as represents ten per cent of the ordinary share capital of the Company in issue immediately
prior to that day. 

  

	3.2	In determining the above limits:- 

  

	 	3.2.1	any Shares allocated to the Trustees under the Scheme and any other Employees’ Share Scheme (including, for the purposes of Rule 3.1 only, a Sharesave plan) adopted by the
Company shall be included; 

  

	 	3.2.2	no account shall be taken of any Shares where the right to acquire such Shares was released or lapsed without being exercised, including pursuant to Rule 2.9 above;

  

	 	3.2.3	no account shall be taken of any Shares where the right to acquire such Shares has been or is to be satisfied other than by the issue or allotment of any part of the share capital
of the Company; and 

  

	 	3.2.4	no account shall be taken of any Shares pursuant to which the right to acquire such shares was granted prior to the Date of Listing. 

  

	3.3	For the avoidance of doubt, references in this Rule 3 to the “allocation” of Shares shall mean, in the case of any share option plan, the placing of unissued Shares under
option, and, in relation to other types of Employees’ Share Schemes, shall mean the issue and allotment of Shares. 

  

	4.	RIGHTS OF EXERCISE AND LAPSE OF OPTIONS 

  

	4.1	An Option:- 

  

	 	4.1.1	save as provided in Rules 4.2, 4.4 and 5 below, shall not be exercised earlier than the third anniversary of the Date of Grant, or such other later or earlier date as is determined
by the Grantor at the Date of Grant pursuant to Rule 2.6.4; 

  

	 	4.1.2	save as provided in Rules 4.2, 4.4 and 5 below, may only be exercised by a Participant whilst he is a director or employee of a Group Member; and 

  

	 	4.1.3	may only be exercised if any conditions upon exercise (as waived, varied or amended) imposed pursuant to Rule 2.3 have been fulfilled to the satisfaction of the Grantor unless the
Grantor, in its absolute discretion, determines that the circumstances surrounding an application of Rules 4.2, 4.4 or 5 are such that the conditions should be disapplied in full, or in part to reflect the extent to which such conditions have been
satisfied from the Date of Grant until the date of the relevant event, in which case the Grantor must notify affected Participants as soon as practicable after the exercise of its discretion. 

  

	4.2	If a Participant ceases to hold office or employment with Group Member as a result of:- 

  

	 	4.2.1	death; 

  

	 	4.2.2	injury or disability; 

  

	 	4.2.3	Retirement or early retirement by agreement with his employer 

  

	 	4.2.4	redundancy within the meaning or the Employment Rights Act 1996 (or applicable equivalent foreign legislation); 

  

	 	4.2.5	the company which employs him ceasing to be a Group Member; 

	 	4.2.6	the transfer or sale of the undertaking or part undertaking in which he is employed to a person who is not a Group Member; or 

  

	 	4.2.7	or any other reason determined at the discretion of the Grantor within one month of the cessation 

  

	  	an Option may be exercised, subject to the provisions of Rule 4.1.3 above, from the date of cessation until six months thereafter PROVIDED THAT an Option cannot be exercised under
Rule 4.2.7 prior to the Grantor exercising its discretion. 

  

	4.3	Options shall lapse upon the occurrence of the earliest of the following events:- 

  

	 	4.3.1	the tenth anniversary of the Date of Grant (unless the Grantor specifies any earlier date pursuant to Rule 2.6.6); 

  

	 	4.3.2	the expiry of any of the periods specified in Rules 4.2, the Option shall not lapse by reason of this Rule 4.3.2 until the expiry of the period specified in Rule 4.2;

  

	 	4.3.3	the expiry of any of the periods specified in Rules 5.1, 5.3, 5.4 and 5.5 save where an Option is released in consideration of the grant of a New Option (during one of the periods
specified in Rules 5.1, 5.3 or 5.4) pursuant to Rule 5.6; 

  

	 	4.3.4	the Participant ceasing to hold an office or employment or giving or being given notice to terminate employment with a Group Member in any circumstances other than:-

  

	 	(a)	where the cessation of office or employment arises on any of the grounds specified in Rules 4.2 provided that an Option shall not be regarded as having lapsed pursuant to this Rule
4.3.4.1 if the Grantor determines within one month of the Participant ceasing to hold his office or employment that the Participant ceased to hold the office or employment in accordance with Rule 4.2.7; or 

  

	 	(b)	where the cessation of office or employment arises on any ground whatsoever during any of the periods specified in Rule 5 save where an Option is released in consideration of the
grant of a New Option (during one of the periods specified in Rules 5.1, 5.3 or 5.4) pursuant to Rule 5.6; 

  

	 	4.3.5	subject to Rule 5.5, the passing of an effective resolution, or the making of an order by the Court, for the winding-up of the Company; 

  

	 	4.3.6	the Participant being deprived of the legal or beneficial ownership of the Option by operation of law, or doing or omitting to do anything which causes him to be so deprived or
being declared bankrupt; and 

  

	 	4.3.7	the Participant purporting to transfer or dispose of the Option or any rights in respect of it other than as permitted under Rule 2.8. 

  

	4.4	If a Participant, while continuing to hold an office or employment with a Group Member, is transferred to work in another country and as a result of that transfer the Participant
will either:- 

  

	 	4.4.1	become subject to income tax on his remuneration in the country to which he is transferred such that he will suffer a tax disadvantage upon exercising his Option; or

  

	 	4.4.2	become subject to restrictions on his ability to exercise his Option or to deal in the Shares that may be acquired upon the exercise of that Option by reason of or in consequence
of, the securities laws or exchange control laws of the country to which he is transferred; 

  

	  	the Participant may (except in the case of Options granted under the UK Approved Addendum), at the discretion of the Grantor, exercise his Option in the period commencing three
months before and ending three months after the transfer has taken place. 

  

	4.5	No Option may be granted, exercised, released or surrendered at a time when such grant, exercise, release or surrender would not be in accordance with the “Model Code on
Directors’ Dealings in Securities” issued by the UK Listing Authority of the London Stock Exchange as amended from time to time. 

	5.	TAKEOVER, RECONSTRUCTION AND WINDING-UP 

  

	5.1	Subject to Rules 5.3 and 5.6 below, if any person obtains Control of the Company as a result of making, either:- 

  

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

  

	 	5.1.2	a general offer to acquire all the shares in the Company which are of the same class as the Shares; 

  

	  	(in either case disregarding any shares already owned by it or by any company associated with it), an Option may, be exercised within six months of the time when the person making
the offer has obtained Control of the Company and any condition subject to which the offer is made has been satisfied. 

  

	5.2	For the purpose of Rule 5.1 a person shall be deemed to have obtained Control of the Company if he and others acting in concert (as defined by the City Code on Take-overs and
Mergers) with him have together obtained Control of it. 

  

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

  

	5.4	Subject to Rule 5.6, if under Section 425 of the Companies Act 1985 it is proposed that the Court sanctions a compromise or arrangement proposed for the purposes of or in
connection with a Plan for the reconstruction of the Company or its amalgamation with any other company or companies, the following apply:- 

  

	 	5.4.1	the Company shall give notice thereof to all Participants at the same time as it sends notices to members of the Company calling the meeting to consider such a compromise or
arrangement; 

  

	 	5.4.2	the Participant may then exercise the Option subject to the terms of this Rule 5.4 before the earlier of the expiry of six months from the date of such notice and the date on which
the Court sanctions the compromise or arrangement; 

  

	 	5.4.3	the Option shall then lapse conditionally on such compromise or arrangement being sanctioned by the Court and becoming effective; 

  

	 	5.4.4	the exercise of an Option under this Rule 5.4 shall be conditional on such compromise or arrangement being sanctioned by the Court and becoming effective; 

 

	 	5.4.5	after exercising the Option the Participant shall transfer or otherwise deal with the Shares issued to him so as to place him in the same position (so far as possible) as would have
been the case if such Shares had been subject to such compromise or arrangement. 

  

	5.5	If notice is duly given of a resolution for the voluntary winding-up of the Company, the Company shall give notice thereof to all Participants. Subject to Rule 5.6, an Option may
then be exercised until the resolution is duly passed or defeated or the meeting concluded or adjourned sine die provided that any such exercise of an Option pursuant to this Rule 5.5 shall be conditional upon the said resolution being duly passed.
If such resolution is duly passed all Options shall, to the extent that they have not been exercised, lapse immediately. 

  

	5.6	If Options become exercisable pursuant to any of Rules 5.1, 5.3 or 5.4 above (where this occurs as a result of a company obtaining Control in the case of Rules 5.1 and 5.4 or as a
result of a company becoming bound or entitled in accordance with Rule 5.3), any Participant may at any time within the Appropriate Period, by agreement with the relevant company, release any Option which has not lapsed (“the Old Option”)
in consideration of the grant to him of an Option (“the New Option”) which is equivalent to the Old Option but relates to shares in a different company (whether the company which has obtained Control of the Company itself or some other
company). 

  

	5.7	For the purposes of Rule 5.6 the provisions of the Plan shall be construed as if:- 

  

	 	5.7.1	the New Option was an option granted under the Plan at the same time as the Old Option; and 

	 	5.7.2	except for the purpose of the definition of “Participating Company” in Rule 1 and the reference to “the Company” in Rule 10.2, the reference to CSR plc in the
definition of “the Company” in Rule 1 were a reference to the different company mentioned in Rule 5.6. 

  

	5.8	Rules 5.1, 5.3 and 5.4 above shall not apply where:- 

  

	 	5.8.1	the events form part of a scheme or arrangement whereby Control of the Company is obtained by another company (“the Acquiring company”); 

  

	 	5.8.2	immediately after the Acquiring Company obtains Control, the issued equity share capital of the Acquiring Company is owned substantially by the same persons who were equity
shareholders of the Company immediately prior to the Acquiring Company obtaining Control; and 

  

	 	5.8.3	the Acquiring Company has agreed to grant new options in accordance with Rule 5.6 in consideration for the release of any Options which have not lapsed. 

  

	5.9	If the Company has been or will be affected by any demerger, dividend in specie, super dividend or other transaction which will adversely affect the current or future value of any
Options, the Grantor may, acting fairly, reasonably and objectively, allow all such Options (but not some only) to be exercised conditionally on such event happening. The Grantor will specify the period of exercise of such Options. The Grantor will
notify any Participant who is affected by this Rule. 

  

	5.10	Where Rules 5.1, 5.3, 5.4 or 5.5 apply, and subject to the provisions of rule 2.3, only a proportion of an Option can be exercised, which proportion will reflect the number of
months of the Option Period which have elapsed between the Date of Grant and the date of the relevant event. 

  

	6.	MANNER OF EXERCISE 

  

	6.1	An Option may be exercised, in whole or in part. 

  

	6.2	An Option may be exercised by the delivery to the Company Secretary (as agent for the Grantor), or his duly appointed agent, of an option certificate covering at least all the
Shares over which the Option is then to be exercised, with the notice of exercise in the prescribed form duly completed and signed by the Participant (or by his duly authorised agent) together with a remittance for the total Option Price payable to
the Company (as agent for the Trustees where the Trustees have agreed to satisfy the Option) in respect of the Shares over which the Option is to be exercised, or entry into other arrangements with the Company to allow a cashless exercise, in such a
form as agreed in advance with the Inland Revenue. If any conditions must be fulfilled before an Option may be exercised, the delivery of the certificate shall not be treated as effecting the exercise of an Option unless and until the Grantor is
satisfied that the conditions have been fulfilled. The Grantor shall state whether the conditions have been fulfilled to its satisfaction as soon as practicable following the expiry of any performance period over which the fulfilment of conditions
was to be measured or where a performance period is not relevant within 14 days of receipt of the documentation referred to above. 

  

	6.3	The effective date of exercise shall be the later of the date of delivery of the notice of exercise and the date that the Grantor states that the conditions imposed by Rule 2.3 have
been fulfilled, if applicable. For the purposes of this Plan a notice of exercise shall be deemed to be delivered when it is received by the Company. 

  

	6.4	In the event that any Tax Liability becomes due on the exercise of an Option, the Participant will be deemed to have given irrevocable instructions to the Company’s brokers (or
any other person acceptable to the Company) for the sale of sufficient Shares acquired on the exercise of the Option to realise an amount equal to the Tax Liability and the payment of the Tax Liability to the Relevant Company, unless:-

  

	 	6.4.1	the Relevant Company is able to deduct an amount equal to the whole of the Tax Liability from the Participant’s net pay for the relevant pay period; or

  

	 	6.4.2	the Participant has paid to the Relevant Company an amount equal to the Tax Liability; or 

  

	 	6.4.3	the Grantor determines otherwise. 

	7.	ISSUE OR TRANSFER OF SHARES 

  

	7.1	Subject to Rule 7.3 Shares to be issued pursuant to the exercise of an Option shall be allotted to the Participant (or his nominee) within 30 days following the date of effective
exercise of the Option. 

  

	7.2	Subject to Rule 7.3, the Grantor shall procure the transfer of any Shares to be transferred to a Participant (or his nominee) pursuant to the exercise of an Option within 30 days
following the date of effective exercise of the Option. 

  

	7.3	The allotment or transfer of any Shares under the Plan shall be subject to obtaining any such approval or consent as is mentioned in Rule 2.5 above. 

  

	7.4	Shares issued pursuant to the Plan will rank pari passu in all respects with the Shares then in issue, except that they shall not rank for any right attaching to Shares by reference
to a record date preceding the date of exercise. 

  

	7.5	If Shares are transferred pursuant to the Plan the Participant shall not be entitled to any rights attaching to Shares by reference to a record date preceding the date of exercise.

  

	7.6	If and so long as the Shares are listed on the London Stock Exchange, the Company shall apply for listing of any Shares issued pursuant to the Plan as soon as practicable after the
allotment thereof. 

  

	8.	ADJUSTMENTS 

  

	8.1	The number of Shares over which an Option is granted, the conditions of exercise and the Option Price thereof (and where an Option has been exercised but no Shares have been
allotted or transferred pursuant to such exercise, the number of Shares which may be so allotted or transferred and the price at which they may be acquired) shall be adjusted in such manner as the Grantor shall determine following any capitalisation
issue, demerger, any offer or invitation made by way of rights, subdivision, consolidation, reduction, other variation in the share capital of the Company or any other exceptional event which in the opinion of the Auditors justifies such an
adjustment, to the intent that (as nearly as may be without involving fractions of a Share) the aggregate Option Price payable in respect of an Option shall remain unchanged. 

  

	8.2	Apart from pursuant to this Rule 8.2, no adjustment under Rule 8.1 above may have the effect of reducing the Option Price to less than the nominal value of a Share. Where an Option
subsists over both issued and unissued Shares any such adjustment may only be made if the reduction of the Option Price of Options over both issued and unissued Shares can be made to the same extent. Any adjustment made to the Option Price of
Options over unissued Shares shall only be made if and to the extent that the Board shall be authorised to capitalise from the reserves of the Company a sum equal to the amount by which the nominal value of the Shares in respect of which the Option
is exercisable exceeds the adjusted Option Price and to apply such sum in paying up such amount on such Shares so that on exercise of any Option in respect of which such a reduction shall have been made the Board shall capitalise such sum (if any)
and apply the same in paying up such amount as aforesaid. 

  

	8.3	The Grantor may take such steps as it may consider necessary to notify Participants of any adjustment made under this Rule 8 and to call in, cancel, endorse, issue or reissue any
certificate consequent upon such adjustment. 

  

	9.	ADMINISTRATION 

  

	9.1	Any notice or other communication under or in connection with the Plan may be given by personal delivery or by sending the same by electronic means or post, in the case of a company
to its registered office, and in the case of an individual to his last known address, or, where he is a director or employee of a Group Member, either to his last known address or to the address of the place of business at which he performs the
whole or substantially the whole of the duties of his office or employment, and where a notice or other communication is given by post, it shall be deemed to have been received 72 hours after it was put into the post properly addressed and stamped,
and if by electronic means, when the sender receives electronic confirmation of delivery or if not available, 24 hours after sending the notice. 

	9.2	The Company may distribute to Participants copies of any notice or document normally sent by the Company to the holders of Shares. 

  

	9.3	In the case of partial exercise of an Option, the Grantor may in consequence call in, endorse, cancel and reissue, as it considers appropriate, any certificate for the balance of
the Shares over which the Option was granted. 

  

	9.4	If any certificate shall be worn out, defaced or lost, it may be replaced on such evidence being provided as the Grantor may require. 

  

	9.5	The Company shall at all times keep available for allotment unissued Shares at least sufficient to satisfy all Options under which Shares may be subscribed or the Grantor shall
procure that sufficient Shares are available for transfer to satisfy all Options under which Shares may be acquired. 

  

	9.6	The Plan shall be administered by the Board. The Board shall have full authority, consistent with the Plan, to administer the Plan, including authority to interpret and construe any
provision of the Plan and to adopt such regulations for administering the Plan and such forms of exercise as it may deem necessary or appropriate. Decisions of the Board shall be final and binding on all parties. 

  

	9.7	The costs of introducing and administering the Plan shall be borne by the Participating Companies. 

  

	10.	ALTERATIONS 

  

	10.1	Subject to Rules 10.2 and 10.4, the Board may at any time (but only with the prior consent of the Trustees if there are subsisting Options which they have agreed to satisfy or which
will be affected by the alteration or addition) alter or add to all or any of the provisions of the Plan in any respect. 

  

	10.2	Subject to Rule 10.3, no alteration or addition to the material advantage of Participants or employees shall be made under Rule 10.1 to:- 

  

	 	10.2.1	the persons to whom Options may be granted under the Plan; 

  

	 	10.2.2	the limitations on the number of Shares which may be issued under the Plan; 

  

	 	10.2.3	the individual limits on participation for each Participant in the Plan; 

  

	 	10.2.4	the principal terms of the Options; 

  

	 	10.2.5	the determination of the Option Price; 

  

	 	10.2.6	the rights of Participants in the event of a variation of the share capital; and 

  

	 	10.2.7	the terms of this Rule 10.2; 

  

	  	without the prior approval by ordinary resolution of the members of the Company in general meeting. 

  

	10.3	Rule 10.2 shall not apply to any minor alteration or addition which is to benefit the administration of the Plan, is necessary or desirable in order to obtain or maintain Inland
Revenue approval of the UK Approved Addendum under Schedule 4 to ITEPA or any other enactment, or to take account of any change in legislation or to obtain or maintain favourable taxation, exchange control or regulatory treatment for the Company, or
any Subsidiary of the Company or any Participant. 

  

	10.4	No alteration or addition shall be made under Rule 10.1 which would materially abrogate or adversely affect the subsisting rights of a Participant unless it is made:-

  

	 	10.4.1	with the consent in writing of such number of Participants as hold Options under the Plan to acquire 75 per cent of the Shares which would be issued or transferred if all
Options granted and subsisting under the Plan were exercised; or 

  

	 	10.4.2	by a resolution at a meeting of Participants passed by not less than 75 per cent of the Participants who attend and vote either in person or by proxy, 

 

	  	and for the purpose of this Rule 10.4 the provisions of the Articles of Association of the Company relating to shareholder meetings shall apply mutatis mutandis.

	10.5	Notwithstanding any other provision of the Scheme other than Rule 10.1 the Grantor may, in respect of Options granted to Eligible Employees who are or who may become subject to
taxation outside the United Kingdom on their remuneration amend or add to the provisions of the Plan and the terms of Options as it considers necessary or desirable to take account of or to mitigate or to comply with relevant overseas taxation,
securities or exchange control laws provided that the terms of Options granted to such Eligible Employees are not overall more favourable than the terms of Options granted to other Eligible Employees. 

  

	10.6	As soon as reasonably practicable after making any alteration or addition under Rule 10.1, the Board shall give written notice thereof to any Participant materially affected
thereby. 

  

	10.7	No alteration shall be made to the Plan if following the alteration the Plan would cease to be an Employees’ Share Scheme. 

  

	11.	LEGAL ENTITLEMENT 

  

	11.1	Nothing in the Plan or in any instrument executed pursuant to it will confer on any person any right to continue in employment, nor will it affect the right of the provider of any
service relationship to terminate the employment of any person without liability at any time with or without cause, nor will it impose upon the Grantor or any other person any duty or liability whatsoever (whether in contract, tort or otherwise) in
connection with:- 

  

	 	11.1.1	the lapsing of any Option pursuant to the Plan; 

  

	 	11.1.2	the failure or refusal to exercise any discretion under the Plan; and/or 

  

	 	11.1.3	a Participant ceasing to be a person who has a service relationship for any reason whatever. 

  

	11.2	Options shall not (except as may be required by taxation law) form part of the emoluments of individuals or count as wages or remuneration for pension or other purposes.

  

	11.3	Any person who ceases to have the status or relationship of an employee with any Group Member as a result of the termination of his employment for any reason and however that
termination occurs, whether lawfully or otherwise, shall not be entitled and shall be deemed irrevocably to have waived any entitlement by way of damages for dismissal or by way of compensation for loss of office or employment or otherwise to any
sum, damages or other benefits to compensate that person for the loss of alteration of any rights, benefits or expectations in relation to any Option, the Plan or any instrument executed pursuant to it. 

  

	11.4	The benefit of this Rule 11 is given to the Company for itself and as trustee and agent of each Group Member. To the extent that this Rule benefits any company which is not a party
to the Plan, the benefit shall be held on trust and as agent by the Company for such company and the Company may, at its discretion, assign the benefit of this Rule 11 to any such company. 

  

	12.	GENERAL 

  

	12.1	The Plan shall terminate upon the tenth anniversary of its approval by the Company or at any earlier time by the passing of a resolution by the Board or an ordinary resolution of
the Company in general meeting. Termination of the Plan shall be without prejudice to the subsisting rights of Participants. 

  

	12.2	The Company and any Subsidiary of the Company may provide money to the trustees of any trust or any other person to enable them or him to acquire Shares to be held for the purposes
of the Plan, or enter into any guarantee or indemnity for those purposes, to the extent permitted by Section 153 of the Companies Act 1985. In addition, the Company may require any Subsidiary to enter into such other agreement or agreements as
it shall deem necessary to oblige such Subsidiary to reimburse the Company for any other amounts paid by the Company hereunder, directly or indirectly in respect of such Subsidiary’s employees. Nothing in the Plan shall be deemed to give any
employee of any Participating Company any right to participate in the Plan. 

  

	12.3	These Rules shall be governed by and construed in accordance with the laws of England and Wales. 

 CSR plc Share Option Plan 
  
 APPENDIX 1 
  
 UK APPROVED ADDENDUM 
  

	1.	DEFINITIONS 

  

	1.1	The words and expressions used in this UK Approved Addendum which have capital letters have the meanings set out below, and words and expressions not otherwise defined have the same
meaning they have in the Rules of the Plan to which this UK Approved Addendum is attached:- 

  

			
	 “Associated Company”
	  	An associated company within the meaning of paragraph 35 of Schedule 4 to ITEPA
		
	 “Close Company”
	  	A close company as defined in Section 414(1) of the Taxes Act as varied by Paragraph 9(4) of Schedule 4 to ITEPA
		
	 “Committee”
	  	 Either:-
  
 (A)   in relation to the grant of Options to directors or executive directors of the Company, the remuneration
committee; or
  
 (B)   in
relation to the grant of Options to other employees, such other duly authorised committee of the Board as may be appointed from time to time

		
	 “Eligible Employee”
	  	 Any person who at the Date of Grant is:-
  
 (A)   an employee of a Participating Company, who is not a director; or
  
 (B)   a full-time director of a
Participating Company
  
 and in either case, not precluded by Paragraph 9 of
Schedule 4 to ITEPA from participating in the Plan. For the purposes of the UK Approved Addendum, an Eligible Employee is a “full-time director” if he works for 25 hours or more a week for a Participating Company

		
	 “Excess Shares”
	  	The aggregate number of Shares which, were they to be acquired by an Eligible Employee on the exercise of any option would cause the limit specified in Rule 2.1 of the UK Approved Addendum to
be exceeded
		
	 “Material Interest”
	  	The meaning given by Paragraph 10 of Schedule 4 to ITEPA
		
	 “Member of a Consortium”
	  	The meaning given by Paragraph 36(2) of Schedule 4 to ITEPA
		
	 “Normal Retirement Date”
	  	The date specified in a Participants contract of employment which for the purposes of paragraph 35A Schedule 4 ITEPA shall not be less than 55
		
	 “Participating Company”
	  	 (A)   The Company; and
  
 (B)   any other company which is under the Control of the Company, is a Subsidiary
of the Company except one which the Grantor has designated shall not be a Participating Company ;and

		
	 “Retirement”
	  	Retirement on or after the Participant’s Normal Retirement Date
		
	 “Share”
	  	A fully paid ordinary share in the capital of the Company which satisfies the requirements of Paragraphs 16 to 20 of Schedule 4 to ITEPA

			
	 “Tax Liability”
	  	 A liability to account for any tax, national insurance, social security or other levy in respect of an Option by the Company or any Participating
Company (“the Relevant Company”), on the exercise of an Option, including for the avoidance of doubt:-
  
 (A)   any liability to pay secondary Class 1 National Insurance Contributions for which an agreement or election
has been entered into under paragraph 3A or 3B of Schedule 1 to the Social Security Contributions and Benefits Act 1992 (“National Insurance Election”); and
  
 (B)   any liability arising after termination of a Participant’s employment for
whatever reason and which may arise or be incurred in any jurisdiction whatever, and by the law of the same jurisdiction may or shall be recovered from the person entitled to the Option
  
 but subject to (A) above, not including any secondary Class 1 National Insurance Contributions

  

	1.2	For the purposes of this UK Approved Addendum the following words shall be added to Paragraph (B) in the definition of Market Value: “and agreed in advance with the
Shares Valuation Division of the Inland Revenue”. 

  

	1.3	For the purposes of this UK Approved Addendum, the word “grant” shall be replaced by the word “exercise” at Rule 2.2 of the Plan. 

  

	1.4	For the purposes of this UK Approved Addendum, Rule 2.3.2 of the Plan shall be disapplied. 

  

	2.	AMENDMENTS TO THE PLAN 

  

	  	An Option may not be granted under this UK Approved Addendum before this Addendum has been approved by the Inland Revenue under Schedule 4 to ITEPA. The purpose of this Addendum is
to benefit Eligible Employees who are, or may become, resident in the United Kingdom. This Addendum applies to any grant of Options specified as having been granted subject to its terms and conditions. 

  

	  	For the purpose of Options granted under this UK Approved Addendum, all of the Rules of the Plan shall apply subject to the following amendments:- 

  

	2.1	No Option shall be granted to an Eligible Employee at any time if it would result in:- 

  

	 	2.1.1	the aggregate Market Value of the Shares at the Date of Grant which he may acquire in pursuance of rights obtained under the Plan; and 

  

	 	2.1.2	the aggregate market value of shares which the Eligible Employee could acquire by the exercise of an option under any other Executive Share Option Plan approved by the Inland
Revenue under Schedule 4 of ITEPA and established by the Company or any Associated Company and not exercised (“Relevant Option Shares”) 

  

	  	to exceed £30,000 or such other limit contained from time to time in Paragraph 6(1) of Schedule 4 to ITEPA. If an Option is granted over Excess Shares, the Grantor shall
forthwith notify the Eligible Employee of this fact. The Grantor may call in the option certificate for endorsement, replacement or cancellation (as appropriate). If an Option is granted over Excess Shares, such Option shall only take effect to the
extent that the aggregate market value of all the Relevant Option Shares (as calculated above) does not cause the above limit to be exceeded. 

  

	2.2	No Option shall be granted to an Eligible Employee at any time if it would result in the aggregate market value of shares (calculated at the date of grant of each option concerned)
which he may acquire under the Plan and any Enterprise Management Incentive Scheme approved by the Inland Revenue under Schedule 5 of ITEPA exceeding £100,000 or such other limit contained from time to time in Paragraph 5 of Schedule 5 to
ITEPA. 

	2.3	Rule 2.8 of the Plan shall be amended to read as follows: “Subject to the rights of exercise by the Participant’s personal representatives pursuant to Rule 4.2.1, every
Option shall be personal to the Participant to whom it is granted and shall not be transferable or in any way alienable. 

  

	2.4	An Option may not be exercised at any time when a Participant has or has had within the preceding 12 months a Material Interest in a Close Company which is:-

  

	 	2.4.1	the Company; or 

  

	 	2.4.2	any company which has Control of the Company or is a Member of a Consortium which owns the Company. 

  

	2.5	No adjustment shall be made pursuant to Rule 8.1 of the Plan without the prior approval of the Inland Revenue (so long as the UK Approved Addendum is approved by the Inland
Revenue). 

  

	2.6	If an alteration or addition is made by the Board under Rule 10.1 of the Plan to any key feature of the Plan at a time when the UK Approved Addendum is approved by the Inland
Revenue under Schedule 4 to ITEPA, such alteration or addition shall not have effect until it has been approved by the Inland Revenue. For the purposes of this Rule 2.6 a “key feature” is any provision of the UK Approved Addendum which is
necessary to meet the requirements of Schedule 4 to ITEPA. 

  

	2.7	Rule 5.6 of the Plan shall be amended as follows:- 

  

	 	2.7.1	The words “(for the purposes of Paragraph 27 of Schedule 4 to ITEPA)” shall be included after “... in consideration of the grant to him of an Option (“the New
Option”) which”; and 

  

	 	2.7.2	The words “falling within Paragraph 16(b) or (c) of Schedule 4 to ITEPA)” shall be included after “... (whether the company which has obtained Control of the
Company itself or some other company”. 

  

	2.8	For the purposes of Rules 5.6 and 5.7 of the Plan the New Option shall not be regarded as equivalent to the Old Option unless the conditions set out in Paragraph 26(3) of Schedule 4
to ITEPA are satisfied. 

  

	2.9	No adjustment may be made in accordance with Rule 8 of the Plan in the event of a demerger of the Company or other exceptional event that does not include the variation of the share
capital of the Company. 

  

	2.10	Rule 5.9 of the Plan will not apply. 

  

	2.11	Rule 6.4.3 of the Plan will not apply. 

  

	2.12	Rule 4.2.7 of the Plan shall be amended as follows:- 

  

	 	2.12.1	The words “provided that any such discretion is exercised fairly and reasonably” shall be included after the words “or any other reason determined at the discretion
of the Grantor within one month of the cessation”. 

  

	 	2.12.2	For the purposes of this UK Approved Addendum the words “conditions of exercise”; “demerger” and “other exceptional event” in Rule 8.1 of the Plan
shall be disapplied. 

 APPENDIX 2 
  
 TO 
  
 CSR PLC SHARE OPTION PLAN 
  
 (for California residents only, to the extent required by Section 25102(o)) 
  
 Adopted November 28, 2008 
  
 This Appendix 2 to the CSR plc Share Option Plan shall apply only to the Participants who are residents of the State of
California and who are receiving an Option under the Plan. Capitalized terms contained herein shall have the same meanings given to them in the Plan, unless otherwise provided by this Appendix 2. Notwithstanding any provisions contained in the Plan
to the contrary and to the extent required by applicable laws, the following terms shall apply to all Options granted to residents of the State of California with effect from the adoption of this Appendix, until such time as the Board amends this
Appendix 2 or the Board otherwise provides. 
  

	1.	Definitions 

  

					
	 1.1
	  	“Cause”	    	(i) An act of dishonesty made by Participant in connection with Participant’s responsibilities as an employee, (ii) Participant’s conviction of, or plea of nolo contendere to,
a felony or any crime involving fraud, embezzlement or any other act of moral turpitude, (iii) Participant’s gross misconduct, (iv) Participant’s unauthorized use or disclosure of any proprietary information or trade secrets of the
Group Member or any other party to whom Participant owes an obligation of nondisclosure as a result of Participant’s relationship with the Group Member, (v) Participant’s willful breach of any obligations under any written agreement
or covenant with the Group Member, or (vi) Participant’s continued failure to perform his or her employment duties after Participant has received a written demand of performance from the Group Member which specifically sets forth the factual
basis for the Group Member’s belief that Participant has not substantially performed his or her duties.
			
	 1.2
	  	“Disability”	    	Total and permanent disability as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended.
			
	 1.3
	  	“Section 25102(o)”	    	Section 25102(o) of the California Corporations Code.

  

	2.	The term of each Option shall be stated in the Option certificate, provided, however, that the term shall be no more than ten (10) years from the date of grant thereof.

  

	3.	Unless determined otherwise by the Grantor (and as otherwise permitted by the Plan), Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or the laws of descent and distribution, and may be exercised during the lifetime of the Participant, only by the Participant. 

  

	4.	If a Participant ceases to hold office or employment with a Group Member for other than Cause, Disability, or death, such Participant may exercise his or her Option within such
period of time as specified in the Option certificate, which shall not be less than thirty (30) days from the date of the Participant’s termination, to the extent that the Option is vested on the date of termination or as accelerated under
such circumstances as determined by the Board as permitted by the Plan (but in no event later than the expiration of the term of the Option as set forth in the Option certificate and as subject to Appendix 3 of the Plan). 

	5.	If a Participant ceases to hold office or employment with a Group Member for Cause, his or her Option will immediately cease to be exercisable and will terminate on the date the
Participant ceases to hold office or employment with a Group Member. 

  

	6.	If a Participant ceases to hold office or employment with a Group Member as a result of the Participant’s Disability, the Participant may exercise his or her Option within such
period of time as specified in the Option certificate, which shall not be less than six (6) months following the date of the Participant’s termination, to the extent the Option is vested on the date of termination or as accelerated under
such circumstances as determined by the Board as permitted by the Plan (but in no event later than the expiration of the term of such Option as set forth in the Option certificate and as subject to Appendix 3 of the Plan). 

 

	7.	If a Participant dies while he or she holds office or employment with a Group Member, the Option may be exercised within such period of time as specified in the Option certificate,
which shall not be less than six (6) months from the date of the Participant’s death, to the extent the Option is vested on the date of death or as accelerated under such circumstances as determined by the Board as permitted by the Plan
(but in no event later than the expiration of the term of such Option as set forth in the Option certificate and as subject to Appendix 3 of the Plan) by the Participant’s designated beneficiary, personal representative, or by the person(s) to
whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution. 

  

	8.	No Option shall be granted to a resident of California more than ten (10) years after the earlier of the date of adoption of the Plan or the date the Plan is approved by the
stockholders. 

  

	9.	This Appendix 2 shall be deemed to be part of the Plan and the Board shall have the authority to amend this Appendix 2 in accordance with Rule 10 of the Plan.

  

 2 

 APPENDIX 3 
  
 TO 
  
 CSR PLC SHARE OPTION PLAN 
  
 (for United States taxpayers only) 
  
 Adopted November 28, 2008 
  
 This Appendix 3 to the CSR plc Share Option Plan shall apply only to the Participants who are taxpayers in the United States and who are receiving an
Option under the Plan. Capitalized terms contained herein shall have the same meanings given to them in the Plan, unless otherwise provided by this Appendix 3. Notwithstanding any provisions contained in the Plan to the contrary and to the extent
required by applicable laws, the following terms shall apply to all Options granted to United States taxpayers with effect from the adoption of this Appendix 3, until such time as the Board amends this Appendix 3 or the Board otherwise provides.

  

	1.	Each Option that is granted with an exercise price per Share that is less than 100% of the Market Value per Share on the Date of Grant, or any vested portion thereof, shall be
exercised by December 31 of the calendar year in which such Option, or portion thereof, vests (i.e., first becomes exercisable), subject to earlier termination as set forth in the Option agreement (or certificate) or the Plan. If not so
exercised, such Option, or any vested portion thereof, shall terminate. 

  

	2.	Notwithstanding anything in the Plan or this Appendix 3 to the contrary, if the vesting of the balance, or some lesser portion of the balance, of any Option granted with an exercise
price per Share that is less than 100% of the Market Value of a Share is accelerated pursuant to Rule 4.1.3 or Rule 4.2 in connection with the Participant’s ceasing to hold office or employment with a Group Member (provided that such cessation
is a “separation from service” within the meaning of Section 409A, as determined by the Company), other than due to death, and if the Participant is a “specified employee” within the meaning of Section 409A at the time
of such “separation from service” then the issuance of the Shares subject to such Option otherwise payable on or within the six (6) month period following the Participant’s separation from service instead will be paid on the date
that is six (6) months and one (1) day following the date of the Participant’s “separation from service”, unless the Participant dies following his or her “separation from service”, in which case, the Shares will
be issued to the Participant’s estate as soon as practicable following his or her death. For purposes of this Appendix 3, “Section 409A” means Section 409A of the U.S. Internal Revenue Code of 1986, as amended, and any final
Treasury Regulations and other Internal Revenue Service guidance thereunder, as each may be amended from time to time. 

  

	3.	It is the intent of this Appendix 3 to comply with the requirements of Section 409A so that none of the Options provided under this Appendix 3 or Shares issuable thereunder
will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. 

  

	4.	This Appendix 3 shall be deemed to be part of the Plan and the Board shall have the authority to amend this Appendix 3 in accordance with Rule 10 of the Plan.

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