As filed with the Securities and Exchange Commission on February 19, 2021
Registration No. 333- _____
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
BP p.l.c.
(Exact name of registrant as specified in its charter)
England and Wales | None | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
1 St. Jamess Square
London SW1Y 4PD, England
(Address of principal executive offices)
BP p.l.c. Reinvent BP Plan
BP p.l.c. Reinvent BP Plan (B)
(Full title of plan)
Mark Crawford Vice President and General Counsel BP America Inc. 501 Westlake Park Boulevard Houston, Texas 77079 (281) 366-2651
(Name, address, including zip code, and telephone number, including area code, of agent for service) |
With a copy to:
Eric Nitcher Executive Vice President, Legal BP p.l.c. 1 St. Jamess Square London SW1Y 4PD, England +44 (20) 7496 4452 |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated filer ☒ | Accelerated filer ☐ | |
Non-accelerated filer | Smaller reporting company ☐ |
CALCULATION OF REGISTRATION FEE
| ||||||||
Title of Securities to be Registered | Amount of Shares to be Registered |
Proposed Maximum Offering Price
Per |
Proposed Maximum Aggregate Offering Price |
Amount of Registration Fee | ||||
Ordinary Shares (1) |
30,000,000 | $3.92(3) | $117,600,000 | $12,830.16 | ||||
Ordinary Shares (2) |
6,000,000 | $3.92(3) | $23,520,000 | $2,566.03 | ||||
| ||||||||
|
(1) | Represents Ordinary Shares which may be granted under the BP p.l.c. Reinvent BP Plan (the Reinvent BP Plan). Pursuant to Rule 416(a) under the Securities Act of 1933, as amended, the number of Ordinary Shares being registered also includes such indeterminate number of additional shares as may be issuable under the Reinvent BP Plan in connection with variations in share capital, demergers, special dividends or similar transactions. |
(2) | Represents Ordinary Shares which may be granted under the BP p.l.c. Reinvent BP Plan (B) (the Reinvent BP Plan (B)). Pursuant to Rule 416(a) under the Securities Act of 1933, as amended, the number of Ordinary Shares being registered also includes such indeterminate number of additional shares as may be issuable under the Reinvent BP Plan (B) in connection with variations in share capital, demergers, special dividends or similar transactions. |
(3) | Estimated solely for the purposes of calculating the registration fee. Such estimate has been computed in accordance with Rule 457(h) based on the average of the high and low quotation for Ordinary Shares of BP p.l.c. on The London Stock Exchange on February 17, 2021 and the buying rate for pounds sterling of £1.00=$1.39, as published by The Wall Street Journal for that date. |
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Certain Documents By Reference.
The reports listed below have been filed with or furnished to the Securities and Exchange Commission (Commission) by BP p.l.c., (BP or the Company) and are incorporated herein by reference to the extent not superseded by documents or reports subsequently filed or furnished:
| BPs Annual Report on Form 20-F (SEC file number 001-06262) for the year ended December 31, 2019 (film number 20723765), including the description of BPs Ordinary Shares contained in Exhibit 2 thereto; |
| BPs Amendment No. 1 to its Annual Report on Form 20-F/A (SEC file number 001-06262) for the year ended December 31, 2019, dated March 27, 2020 (film number 20751619); and |
| BP Reports on Form 6-K (SEC file number 001-06262) dated March 20, 2020 (film number 20730333), April 1, 2020 (film number 20764643), April 27, 2020 (film number 20817255), April 28, 2020 (film number 20822346), April 29, 2020 (film number 20828673), June 15, 2020 (film number 20961876), June 29, 2020 (film number 20995917), August 4, 2020 (film number 201070881), August 4, 2020 (film number 201071086), October 27, 2020 (film number 201262379) and February 2, 2021 (film number 21579483). |
In addition, all Forms 20-F filed by BP pursuant to the Securities Exchange Act of 1934, as amended, and certain Reports on Form 6-K furnished by BP (which indicate on their cover pages that they are incorporated herein by reference), after the date of this Registration Statement and prior to the filing of a post-effective amendment to this Registration Statement which indicate that all securities have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference in this Registration Statement and to be a part hereof from the date of filing or furnishing of such documents or reports, to the extent not superseded by documents or reports subsequently filed or made.
Item 4. Description of Securities.
Not Applicable.
Item 5. Interest of Named Experts and Counsel.
None.
Item 6. Indemnification of Directors and Officers
BP has entered into Deeds of Indemnity with the Directors and Secretary of BP by which BP agrees and confirms that the provisions of Article 137 of BPs Articles of Association (as the same may from time to time be amended or modified) (the Indemnity) shall be enforceable directly by them against BP. The Directors and Secretary must promptly give BP written notice of any matter or circumstance which may give rise to a claim under the Indemnity and permit BP (where appropriate) to participate in and assume the defense of any action, suit or proceeding or governmental or other investigation of which they are made or threatened to be made a party and which may give rise to a claim under the Indemnity.
Article 137 of BPs Articles of Association currently provides:
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Subject to the provisions of and so far as may be consistent with the Companies Acts, every current or former director, Secretary, or other officer of the Company shall be entitled to be indemnified by the Company against all costs, charges, losses, expenses and liabilities incurred by him in the execution and/or discharge of his duties and/or the exercise of his powers and/or otherwise in relation to or in connection with his duties, powers or office.
The following provisions of the Companies Act 2006 provide as follows:
232 Provisions protecting directors from liability
(1) | Any provision that purports to exempt a director of a company (to any extent) from any liability that would otherwise attach to him in connection with any negligence, default, breach of duty or breach of trust in relation to the company is void. |
(2) | Any provision by which a company directly or indirectly provides an indemnity (to any extent) for a director of the company, or of an associated company, against any liability attaching to him in connection with any negligence, default, breach of duty or breach of trust in relation to the company of which he is a director is void except as permitted by |
(a) | section 233 (provision of insurance), |
(b) | section 234 (qualifying third party indemnity provision), or |
(c) | section 235 (qualifying pension scheme indemnity provision). |
(3) | This section applies to any provision, whether contained in a companys articles or in any contract with the company or otherwise. |
(4) | Nothing in this section prevents a companys articles from making such provision as has previously been lawful for dealing with conflicts of interest. |
233 Provision of insurance
Section 232(2) (voidness of provisions for indemnifying directors) does not prevent a company from purchasing and maintaining for a director of the company, or of an associated company, insurance against any such liability as is mentioned in that subsection.
234 Qualifying third party indemnity provision
(1) | Section 232(2) (voidness of provisions for indemnifying directors) does not apply to qualifying third party indemnity provision. |
(2) | Third party indemnity provision means provision for indemnity against liability incurred by the director to a person other than the company or an associated company. |
Such provision is qualifying third party indemnity provision if the following requirements are met.
(3) | The provision must not provide any indemnity against - |
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(a) | any liability of the director to pay - |
(i) | a fine imposed in criminal proceedings, or |
(ii) | a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising); or |
(b) | any liability incurred by the director - |
(i) | in defending criminal proceedings in which he is convicted, or |
(ii) | in defending civil proceedings brought by the company, or an associated company, in which judgment is given against him, or |
(iii) | in connection with an application for relief (see subsection (6)) in which the court refuses to grant him relief. |
(4) | The references in subsection (3)(b) to a conviction, judgment or refusal of relief are to the final decision in the proceedings. |
(5) | For this purpose - |
(a) | a conviction, judgment or refusal of relief becomes final - |
(i) | if not appealed against, at the end of the period for bringing an appeal, or |
(ii) | if appealed against, at the time when the appeal (or any further appeal) is disposed of, and |
(b) | an appeal is disposed of - |
(i) | if it is determined and the period of bringing any further appeal has ended, or |
(ii) | if it is abandoned or otherwise ceases to have effect. |
(6) | The reference in subsection (3)(b)(iii) to an application for relief is to an application for relief under - |
section 661(3) or (4) (power of court to grant relief in case of acquisition of shares by innocent nominee), or
section 1157 (general power of court to grant relief in case of honest and reasonable conduct).
235 Qualifying pension scheme indemnity provision
(1) | Section 232(2) (voidness of provisions for indemnifying directors) does not apply to qualifying pension scheme indemnity provision. |
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(2) | Pension scheme indemnity provision means provision indemnifying a director of a company that is a trustee of an occupational pension scheme against liability incurred in connection with the companys activities as trustee of the scheme. |
Such provision is qualifying pension scheme indemnity provision if the following requirements are met.
(3) | The provision must not provide any indemnity against - |
(a) | any liability of the director to pay - |
(i) | a fine imposed in criminal proceedings, or |
(ii) | a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising); or |
(b) | any liability incurred by the director in defending criminal proceedings in which he is convicted. |
(4) | The reference in subsection (3)(b) to a conviction is to the final decision in the proceedings. |
(5) | For this purpose - |
(a) | a conviction becomes final - |
(i) | if not appealed against, at the end of the period for bringing an appeal, or |
(ii) | if appealed against, at the time when the appeal (or any further appeal) is disposed of, and |
(b) | an appeal is disposed of - |
(i) | if it is determined and the period for bringing any further appeal has ended, or |
(ii) | if it is abandoned or otherwise ceases to have effect. |
(6) | In this section occupational pension scheme means an occupational pension scheme as defined in section 150(5) of the Finance Act 2004 (c. 12) that is established under a trust. |
256 Associated bodies corporate
For the purposes of this Part
(a) | bodies corporate are associated if one is a subsidiary of the other or both are subsidiaries of the same body corporate, and |
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(b) | companies are associated if one is a subsidiary of the other or both are subsidiaries of the same body corporate. |
239 Ratification of acts of directors
(1) | This section applies to the ratification by a company of conduct by a director amounting to negligence, default, breach of duty or breach of trust in relation to the company. |
(2) | The decision of the company to ratify such conduct must be made by resolution of the members of the company. |
(3) | Where the resolution is proposed as a written resolution neither the director (if a member of the company) nor any member connected with him is an eligible member. |
(4) | Where the resolution is proposed at a meeting, it is passed only if the necessary majority is obtained disregarding votes in favour of the resolution by the director (if a member of the company) and any member connected with him. |
This does not prevent the director or any such member from attending, being counted towards the quorum and taking part in the proceedings at any meeting at which the decision is considered.
(5) | For the purposes of this section |
(a) | conduct includes acts and omissions; |
(b) | director includes a former director; |
(c) | a shadow director is treated as a director; and |
(d) | in section 252 (meaning of connected person), subsection (3) does not apply (exclusion of person who is himself a director). |
(6) | Nothing in this section affects |
(a) | the validity of a decision taken by unanimous consent of the members of the company, or |
(b) | any power of the directors to agree not to sue, or to settle or release a claim made by them on behalf of the company. |
(7) | This section does not affect any other enactment or rule of law imposing additional requirements for valid ratification or any rule of law as to acts that are incapable of being ratified by the company. |
1157 Power of court to grant relief in certain circumstances
(1) | If in proceedings for negligence, default, breach of duty or breach of trust against |
(a) | an officer of a company, or |
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(b) | a person employed by a company as auditor (whether he is or is not an officer of the company) |
it appears to the court hearing the case that the officer or person is or may be liable, but that he acted honestly and reasonably, and that having regard to all the circumstances of the case (including those connected with his appointment) he ought fairly to be excused, the court may relieve him, either wholly or partly, from his liability on such terms as it thinks fit.
(2) | If any such officer or person has reason to apprehend that any claim will or might be made against him in respect of any negligence, default, breach of duty or breach of trust |
(a) | he may apply to the court for relief, and |
(b) | the court has the same power to relieve him as it would have had if it had been a court before which proceedings against him for negligence, default, breach of duty or breach of trust had been brought. |
(3) | Where a case to which subsection (1) applies is being tried by a judge with a jury, the judge, after hearing the evidence, may, if he is satisfied that the defendant (in Scotland, the defender) ought in pursuance of that subsection to be relieved either in whole or in part from the liability sought to be enforced against him, withdraw the case from the jury and forthwith direct judgment to be entered for the defendant (in Scotland, grant decree of absolvitor) on such terms as to costs (in Scotland, expenses) or otherwise as the judge may think proper. |
In addition, BP procures and intends to continue procuring, directors and officers liability insurance coverage for the benefit of such directors and officers, which, subject to policy terms and conditions, provides coverage to such directors and officers in circumstances in which BP, its subsidiaries and associated entities are not permitted or are otherwise unable or unwilling to meet by way of indemnity. No entity coverage for the benefit of BP is currently included as part of that insurance policy. While defense costs may be met, neither BPs indemnity nor the insurance provides coverage in the event that a director or officer is the subject of criminal or regulatory fines or penalties or is proved to have acted fraudulently or dishonestly.
Item 7. Exemption from Registration Claimed.
Not applicable.
Item 8. Exhibits.
The following Exhibits are filed herewith unless otherwise indicated
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Exhibit No. | Description | |
4.1 | BP p.l.c. Reinvent Share Plan 2020 | |
4.2 | BP p.l.c. Reinvent Share Plan (B) 2020 | |
23.1 | Consent of Deloitte LLP, independent registered public accounting firm, London, England | |
23.2 | Consent of Ernst & Young LLP, independent registered public accounting firm, London, England | |
23.3 | Consent of DeGolyer & MacNaughton | |
23.4 | Consent of Netherland, Sewell & Associates | |
23.5 | Consent of Ernst & Young LLC | |
24.1 | Powers of Attorney (included in the signature page of this registration statement) |
Item 9. Undertakings.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement; and
(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
(b) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrants annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or
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controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act will be governed by the final adjudication of such issue.
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EXHIBIT INDEX
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Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, England, on February 19, 2021.
BP p.l.c. | ||
(Registrant) | ||
By: | /s/ Ben J.S. Mathews | |
Name: Ben J.S. Mathews | ||
Title: Company Secretary |
POWER OF ATTORNEY
Each director and officer of the Registrant whose signature appears below hereby constitutes and appoints Mark Crawford, the agent for service named in the registration statement, and appoints each of Murray Auchincloss, Ben Mathews, and Eric Nitcher, his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him, and on his behalf and in his name, place and stead, in any and all capacities, to sign, execute and file any amendments to this registration statement on Form S-8 necessary or advisable to enable the registrant to comply with the Securities Act of 1933, as amended, and any rules, regulations and requirements of the Securities and Exchange Commission in respect thereof, which amendments may make such other changes in this registration statement as such attorney-in-fact deems appropriate, and any subsequent registration statement for the same offering that may be filed under Rule 462(b) under the Securities Act of 1933, as amended.
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated:
Signature |
Titles |
Date | ||
/s/ Helge Lund |
Non-Executive Director | February 19, 2021 | ||
Helge Lund | (Chairman) | |||
/s/ Bernard Looney |
Executive Director | February 19, 2021 | ||
Bernard Looney | Group Chief Executive | |||
(Principal Executive Officer) | ||||
/s/ Murray Auchincloss |
Executive Director | February 19, 2021 | ||
Murray Auchincloss | (Chief Financial Officer) |
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/s/ Karen Richardson |
Non-Executive Director | February 19, 2021 | ||
Karen Richardson | ||||
/s/ Johannes Teyssen |
Non-Executive Director | February 19, 2021 | ||
Johannes Teyssen | ||||
/s/ Pamela Daley |
Non-Executive Director | February 19, 2021 | ||
Pamela Daley | ||||
/s/ Ann Dowling |
Non-Executive Director | February 19, 2021 | ||
Dame Ann Dowling | ||||
/s/ Melody Meyer |
Non-Executive Director | February 19, 2021 | ||
Melody Meyer | ||||
/s/ Tushar Morzaria |
Non-Executive Director | February 19, 2021 | ||
Tushar Morzaria | ||||
|
Non-Executive Director | |||
Brendan Nelson | ||||
/s/ Paula Rosput Reynolds |
Non-Executive Director | February 19, 2021 | ||
Paula Rosput Reynolds | ||||
|
Non-Executive Director | |||
Sir John Sawyers |
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Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following person in the capacity and on the date indicated.
Authorized Representative in the United States:
BP America Inc.
By: | /s/ Mark Crawford | |
Name: Mark Crawford | ||
Title: Vice President and General Counsel | ||
February 19, 2021 |
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Exhibit 4.1
BP p.l.c.
RULES OF THE REINVENT BP PLAN
Adoption: | 9 February 2021 | |
Shareholder approval of Share Award Plan: | 16 April 2015 | |
Expiry: | 15 April 2025 |
Approved by: | Date: | |
Bernard Looney, Chief Executive Officer, BP p.l.c. |
Linklaters
One Silk Street
Telephone (44-20) 7456 2000
Facsimile (44-20) 7456 2222
Ref 01/140
Table of Contents
Contents | Page | |||||
1 |
Definitions | 1 | ||||
2 |
Operation of the Plan | 2 | ||||
3 |
Awards | 5 | ||||
4 |
Vesting and Release of Awards | 5 | ||||
5 |
Malus and clawback | 8 | ||||
6 |
Career Breaks | 10 | ||||
7 |
Leaving the Group before the end of the Restricted Period | 10 | ||||
8 |
Variations in share capital, demergers and special distributions | 11 | ||||
9 |
Takeovers and restructurings | 12 | ||||
10 |
Exchange of Awards | 13 | ||||
11 |
Terms of employment | 14 | ||||
12 |
General | 15 | ||||
13 |
Changing the Plan and termination | 17 | ||||
14 |
Governing law and jurisdiction | 18 | ||||
Schedule 1 US Schedule |
19 | |||||
Schedule 2 Restricted Cash Units |
23 |
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Rules of the Reinvent bp Plan
Introduction | |
This Plan has been designated a Sub-Plan of the BP Share Award Plan 2015 as described in rule 13 of that plan in relation to all Awards.
1 | Definitions |
In these rules:
Acquiring Company means a person who obtains Control of the Company;
ADS means an American depositary share representing ordinary shares of the Company;
Award means an award of Restricted Share Units or an Option;
Career Break means an extended period of unpaid leave from normal work, without ceasing to be an employee or director of any Member of the Group, with the agreement of the Company and which is designated by the Plan Administrator as a Career Break for the purposes of these rules;
Company means BP p.l.c.;
Control has the meaning given to it by section 995 of the Income Tax Act 2007;
Dealing Restrictions means restrictions on dealing imposed by statute, order, regulation, directive or by any policy adopted by the Company whether pursuant to regulatory requirements or otherwise, as varied from time to time;
Designated Corporate Officer means the Group Chief Executive or other appropriate Corporate Officer or such duly authorised person authorised under BPs System of Internal Control and associated delegations;
Final Exercise Date means the day before the tenth anniversary of the Grant Date of an Option or such earlier date determined by the Designated Corporate Officer on or before the Grant Date;
Grant Date means the date which the Plan Administrator sets for the grant of an Award;
London Stock Exchange means London Stock Exchange plc;
Member of the Group means:
(i) | the Company; and |
(ii) | its Subsidiaries from time to time; and |
(iii) | any other company which is associated with the Company and is so designated by the Designated Corporate Officer; |
and Group shall be construed accordingly;
New York Stock Exchange means New York Stock Exchange LLC;
Option means a conditional right to acquire Shares by the exercise of that right;
Option Price means the amount, if any, payable for each Share on the exercise of an Option;
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Participant means a person who is participating in the Plan or his personal representative(s);
Plan means these rules known as The Reinvent bp Plan as changed from time to time;
Plan Administrator means the person or persons appointed by the Designated Corporate Officer as the plan administrator for the purposes of this Plan;
Regulatory Information Service means a service that is approved by the Financial Conduct Authority as meeting the Primary Information Provider Criteria and is on the list of the Regulatory Information Services maintained by the Financial Conduct Authority;
Release means the conversion of Restricted Share Units into, or the settlement of Options with, Shares and the issue or transfer (including a transfer out of treasury) of those Shares and Released shall be construed accordingly;
Restricted Period means the period notified to the Participant under rule 3.1, which will be determined by the Designated Corporate Officer at the time of grant;
Restricted Share Unit means a conditional entitlement to receive Shares for free;
Share Award Plan means the BP Share Award Plan 2015 approved by shareholders on 15 April 2015 as amended from time to time;
Shares means fully paid ordinary shares in the capital of the Company or where the context requires ADSs (see rule 4.5);
Sub-Plan means a Sub-Plan of the Share Award Plan as contemplated by rule 13 of the rules of that plan;
Subsidiary means a company which is a subsidiary of the Company within the meaning of Section 1159 of the Companies Act 2006;
Vesting means the satisfaction of conditions such that:
(a) | in the case of Restricted Share Units, a Participant has an unconditional right to have his Restricted Share Units Released; and |
(b) | in the case of Options, the Option becomes exercisable, and |
in either case, subject to any malus or clawback under rule 5 and Vest or Vested shall be construed accordingly; and
Vesting Date is the date on which an Award Vests.
2 | Operation of the Plan |
2.1 | Eligibility |
Awards will be granted to all employees of the Members of the Group (as this definition is modified as set out below) who are employed on a date determined by the Designated Corporate Officer. However, participation may not be extended to an employee who on the Grant Date is either:
2.1.1 | a director of the Company; or |
2.1.2 | an employee whose employment has been terminated, whether or not such termination is lawful unless the Designated Corporate Officer considers that special circumstances exist. |
2
For the purpose of this rule 2.1, the reference to Subsidiaries in the definition of Member of the Group shall mean companies which are Subsidiaries wholly owned by the Company.
2.2 | Grant |
Where an Award is granted in accordance with rule 2.1, the Company will determine:
2.2.1 | subject to rules 2.6 and 2.7, the number of Shares subject to the Award; |
2.2.2 | the Restricted Period; |
2.2.3 | whether the Award will be an Award of Restricted Share Units, an Option, or a combination; |
2.2.4 | the Option Price (if relevant) which may be nil; and |
2.2.5 | for an Option, the Final Exercise Date. |
Awards and their terms must be approved in advance by the Designated Corporate Officer.
2.3 | Timing of operation |
Awards may only be granted within 42 days starting on any of the following:
2.3.1 | the date of any general meeting of the Company; |
2.3.2 | the day after the announcement of the Companys results through a Regulatory Information Service for any period; |
2.3.3 | any day on which the Designated Corporate Officer resolves that exceptional circumstances exist which justify the grant of Awards; |
2.3.4 | any day on which changes to the legislation or regulations affecting share plans are announced, effected or made; or |
2.3.5 | the lifting of Dealing Restrictions which prevented the granting of Awards during any period specified above. |
No Awards may be granted after 15 April 2025 or such earlier date as the Designated Corporate Officer may specify.
2.4 | No payment |
A Participant is not required to pay for the grant of an Award.
2.5 | Disclaimer of Awards |
Any Participant may disclaim all or part of an Award within 80 days after the Grant Date by notice in writing to any person nominated by the Company. If this happens, the Award will be deemed never to have been granted under the Plan. A Participant is not required to pay for the disclaimer.
2.6 | Individual limit |
An Award must not be granted to an individual if it would, at the proposed Grant Date, cause the market value (as at the relevant date of grant) of Shares subject to Awards and awards or options granted under any other Sub-Plans that have been granted in respect of the same financial year to exceed 550 per cent of their basic salary (the Limit).
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Where a proposed Award (the Proposed Award) would breach the Limit, the Designated Corporate Officer may determine in their discretion that:
2.6.1 | the Proposed Award will be limited (that is, reduced) to such level as is within the Limit and will immediately lapse as to the balance; |
2.6.2 | the Proposed Award will immediately lapse; or |
2.6.3 | the individual will receive two Awards on the following basis: |
(i) | a first Award, representing a proportion of the Proposed Award with a market value as close as practicable to the Limit, shall be granted on the Grant Date of the Proposed Award; and |
(ii) | a second Award, being the balance of the Proposed Award, shall be granted on a date determined by the Designated Corporate Officer, being: |
(a) | the first anniversary, or as close as practicable to the first anniversary, of the Grant Date of the first Award, or |
(b) | the first occasion on which other Awards are made in the financial year following the Grant Date of the Proposed Award, |
provided that the individual remains eligible to receive an Award in accordance with rule 2.1.
If the second Award would breach the Limit for the financial year in which it is granted then it will be limited to such market value so that the Limit is not exceeded.
The following will be excluded from the Limit:
2.6.4 | Shares which may be acquired under any dividend equivalent or comparable facility under this Plan or another Sub-Plan; |
2.6.5 | Awards granted under this Plan, or options or awards granted under another Sub-Plan to a Participant which the Designated Corporate Officer (for the purposes of the Share Award Plan) considers were granted to the Participant: |
(i) | in lieu of any bonus which the Participant might otherwise have been paid in cash; or |
(ii) | to compensate for awards forfeited by the Participant on recruitment. |
For the purposes of this rule 2.6, a persons basic salary is their annual rate of gross salary from all Members of the Group, not including bonus or other variable remuneration and market value will be as determined by the Designated Corporate Officer for the purposes of the Share Award Plan.
If the Company tries to grant an Award which is inconsistent with this rule 2.6, it will be limited and will take effect from the Grant Date on a basis consistent with this rule.
2.7 | Limits on issue of Shares |
2.7.1 | Awards must not be granted on any day if the number of Shares committed to be issued under them exceeds 10 per cent of the ordinary share capital of the Company in issue immediately before that day, when added to the number of Shares which have been issued, or committed to be issued, to satisfy Awards, or options or awards under any other employee share plan operated by the Company, granted in the previous 10 years. |
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2.7.2 | When calculating the limits in rule 2.7.1, Shares will be ignored: |
(i) | where the right to acquire them is released or lapses; |
(ii) | which are committed to be issued under any dividend equivalent. |
2.7.3 | As long as so required by The Investment Association, Shares transferred from treasury to satisfy Awards are counted, for the purposes of this rule 2.7, as part of the ordinary share capital of the Company, and as Shares issued by the Company. |
3 | Awards |
3.1 | Terms of Grant |
Awards are subject to the rules of the Plan and/or such other terms as may be determined on or before the Grant Date by the Designated Corporate Officer. The terms of the grant of an Award, as determined by the Company and approved by the Designated Corporate Officer, must include the number of Shares comprised in the Award, the Restricted Period and, in the case of Options, the Option Price (which may be nil) and the Final Exercise Date.
3.2 | Documentation of Restricted Share Units and Options |
The Company may notify a Participant of the terms of his grant of Restricted Share Units and/or Options in such manner as it decides.
3.3 | Rights |
A Participant will have no rights of a shareholder (e.g. voting or dividends) in respect of Restricted Share Units or Options.
3.4 | Restriction on disposal of interest and hedging |
A Participant must not sell, transfer, assign, hedge, charge or otherwise dispose of any Restricted Share Units or Options or any interest in them and must not enter into any transaction which transfers the risk of price movements with regard to the Shares subject to an Award. If he does, then the Designated Corporate Officer may determine that the Award will lapse. This will not apply to any disposal permitted under rule 4.6 or the issue or transfer of Shares on a Participants death to his personal representatives.
4 | Vesting and Release of Awards |
4.1 | Time of Vesting |
Subject to rules 5 to 7 and rule 9, Awards will Vest at the end of the Restricted Period.
4.2 | Consequences |
4.2.1 | Restricted Share Units |
Subject to rule 5, to the extent that Restricted Share Units Vest under any of rule 4, 7 or 9, the Company will procure the Release of Awards to the Participant (or as the Participant may direct) as soon as practicable after the Vesting Date.
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Where Shares are transferred to a Participant, the Participant will be entitled to all rights attaching to the Shares by reference to a record date on or after the transfer date. The Participant will not be entitled to rights before that date.
4.2.2 | Options |
Subject to rule 5, to the extent that Options Vest under any of rule 4, 7 or 9:
(i) | an Option can be exercised by the Participant giving notice in the prescribed form to the Company or any person nominated by the Company and comply with such arrangements as the Designated Corporate Officer may determine for the payment of the Option Price (if any) including, without limitation, the sale of sufficient Shares to procure the payment of the Option Price; |
(ii) | the Designated Corporate Officer may decide at any time that the exercise of an Option may be satisfied by the Company: |
(a) | arranging for the transfer (including out of treasury) or issue to the Participant of Shares with a market value equal to the Gain on the date of exercise of the Option (rounded down to the nearest whole Share). The Participant will not be required to make any payment for those Shares; and/or |
(b) | making a cash payment to the Participant equal to the Gain on the date of exercise of the Option. |
Where an Option is satisfied in the manner described in rule 4.2.2(ii), this will be in full and final satisfaction of the Participants rights under their Option.
For the purposes of this rule:
Gain means the difference between (i) the market value of a Share on the date of exercise of an Option and (ii) the Option Price, multiplied by the number of Shares in respect of which the Option is being exercised; and
market value means such value as the Designated Corporate Officer reasonably determines in their sole and absolute discretion;
(iii) | subject to a valid exercise of the Option, the Company will arrange subject to rule 4.6 for the transfer (including a transfer out of treasury) or issue to, or to the order of, the Participant, of the number of Shares in respect of which the Option is exercised; |
(iv) | unless the Designated Corporate Officer determines otherwise, to the extent that an Option has not been exercised by the close of business on the Final Exercise Date, the Company will, unless it has received notice in writing to the contrary and subject to the condition set out below being satisfied, be deemed to have received a valid exercise notice immediately preceding the close of business on the Final Exercise Date, together with a direction to sell sufficient of the Shares issued or transferred on the exercise of the Option to fund any Option Price and any taxation or social security contributions payable. The remaining Shares subject to the Option will be transferred to the Participant in accordance with this rule. |
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The condition referred to above is that AB is greater than C, calculated as follows: A equals the expected sale proceeds of the Shares resulting from the exercise of the Option. B equals any costs of any sale (including any Option Price, any actual or estimated liability to taxation, social security contributions and any other related costs in respect of the Option) and C equals the Option Price;
(v) | the Option will lapse to the extent not validly exercised, at the latest, on the close of business on the Final Exercise Date; and |
(vi) | if an Option lapses under more than one provision of the rules of the Plan, the provision resulting in the shortest exercise period will prevail. |
4.3 | Lapse |
If any Restricted Share Units or Options lapse under the Plan, they will not be Released and a Participant will have no rights in respect of them.
4.4 | Cash alternative |
The Company in its absolute discretion may decide to satisfy the Release of Awards, in part or in whole, by paying an equivalent amount in cash (subject to the withholding provisions in rule 4.6). Equivalency will be determined in the sole discretion of the Plan Administrator. In the case of an Option, only the Gain (as defined in rule 4.2.2(ii) above) will be satisfied by paying an equivalent amount in cash.
4.5 | ADSs |
The Plan Administrator may determine that certain Restricted Share Units and/or Options and their Release will be in respect of ADSs and references in these rules to Shares, Awards and dividends shall be construed accordingly.
4.6 | Withholding, deductions and offsets |
The Company, any employing company or other Member of the Group or trustee of any employee benefit trust may withhold such amount and make such arrangements as it considers necessary to meet any liability to taxation or social security contributions in respect of Awards or their Release or the issue or transfer of Shares or any change in the rights attaching to them. These arrangements may include the sale of any Shares on behalf of the Participant or the reduction in the number of Shares in respect of which the Award Vests.
In addition, it shall be a condition of the Vesting and/or Release of an Award that the Company, any employing Company or other Member of the Group may deduct from and set off against the Shares (whether payable in cash or Shares and whenever payable) any debt, obligation, liability, or other amount owed by the Participant to a Member of the Group, including but not limited to amounts under an expatriate tax policy (as currently in effect or as amended from time to time), or amounts advanced on behalf of the Participant with respect to employment taxes, as determined in the sole discretion of the Plan Administrator.
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5 | Malus and clawback |
5.1 | Application of malus and clawback |
Notwithstanding any other rules of the Plan (including, without limitation, rules 7.2, 7.3 and 7.4), the Designated Corporate Officer may decide that malus and/or clawback will apply to an Award if the Designated Corporate Officer has determined that one or more of the following circumstances below (or, in the case of clawback, the circumstances described in rule 5.1.1, 5.1.4, 5.1.6 or 5.1.7) have arisen.
The circumstances are:
5.1.1 | the Participant has engaged in conduct (including, but not limited to, a violation of the BP Code of Conduct) which the Designated Corporate Officer considers was contrary to the legitimate expectations of the Company for an employee in the Participants position (or the position occupied by the Participant before he left the Group); |
5.1.2 | results announced for any period have been restated or subsequently appeared materially financially inaccurate or misleading as determined by the Designated Corporate Officer; |
5.1.3 | a business unit or profit centre in which the Participant worked has made a material financial loss as a result of circumstances that could reasonably have been risk-managed and which leads to or is likely to create reputational damage to the Group; |
5.1.4 | any team, business area, Member of the Group or profit centre in which the Participant works has been the subject of any regulatory investigation or has been in breach of any laws, rules or codes of conduct applicable to it or the standards reasonably expected of it; |
5.1.5 | the Designated Corporate Officer determines that material reputational damage has been caused to the Group or any Member of the Group for which the Participant is responsible or accountable and which could have been reasonably avoided or mitigated; |
5.1.6 | an exceptional event or events occur that have had or may have a material effect on the value or reputation of any Member of the Group (excluding an exceptional event or events which have a material adverse effect on global macroeconomic conditions); |
5.1.7 | the Company or entities representing a material proportion of the Group become insolvent or otherwise suffer a corporate failure so that Shares in the Company cease to have material value, provided that the Designated Corporate Officer determines, following an appropriate review of accountability, that the Participant should be held responsible (in whole or in part) for that insolvency or failure; and |
5.1.8 | any other event as a result of which the directors consider that the application of this rule is appropriate. |
5.2 | Malus |
Where the Designated Corporate Officer decides that malus will apply to a Participant:
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5.2.1 | the Award will lapse or, in the case of owned Shares, will be forfeited, wholly or in part as they may determine; and/or |
5.2.2 | the Restricted Period for any Award will be extended by such period as he may determine; and/or |
5.2.3 | if the Award has already Vested but Shares have not yet been Released (because of, for example, any Dealing Restrictions), a reduced number of Shares as determined by the Designated Corporate Officer will be Released to the Participant. |
5.3 | Clawback |
Where the Designated Corporate Officer decides that clawback will apply, the Designated Corporate Officer may decide that the Participant must:
5.3.1 | transfer to or to the order of the Company a number of Shares which is equal to (or less than) the number of Shares issued or transferred to them pursuant to the Award; and/or |
5.3.2 | pay to or to the order of the Company an amount representing the value of the Shares acquired under the Award; and/or |
5.3.3 | pay to or to the order of the Company an amount equal to any cash payment made to them pursuant to the Award. |
In addition, the Designated Corporate Officer may decide that any Award, bonus or other benefit which might have been granted, Vested or paid to the Participant under this or any other arrangement will be reduced, not awarded or not Vest.
5.4 | General |
5.4.1 | For the avoidance of doubt, circumstances described in rule 5.1 can arise even if the Participant was not responsible for the event in question or if it happened before or after the Vesting or grant of the Award. |
5.4.2 | Malus and/or clawback may be applied differently for different Participants or for different Awards held by the same Participant in relation to the same event. |
5.4.3 | The Designated Corporate Officer will notify the Participant of any application of malus or clawback. |
5.4.4 | Without limiting rule 11, the Participant will not be entitled to any compensation in respect of any application of malus or clawback. |
5.5 | Joining a Competitor Organisation |
Where a Participant has ceased to be an employee but has retained his Award as a consequence of rule 7.2 or 7.3 the directors retain the right to lapse his Award or forfeit his owned Shares if, prior to acquiring the Shares, the Participant joins a Competitor Organisation of any Member of the Group within 12 months of ceasing to be an employee. The directors will have the sole discretion to determine the definition of Competitor Organisation.
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6 | Career Breaks |
6.1.1 | If a Participant is on a Career Break on the date that his Awards would ordinarily Vest under the Plan, then unless the Plan Administrator determines otherwise in any particular case, the Awards will Vest and be Released in accordance with rules 4.1 to 4.6 as soon as practicable after the Plan Administrator determines that the Participant has returned to normal employment at the end of the Career Break and has continued to be in his normal employment for a period of three months from the date of return, and in that period has not given or received notice of termination of employment. |
6.1.2 | Unless any of the reasons set out in rules 7.2.1, 7.4, 9.1, 9.2 or 9.5 apply, if the Participant ceases to be an employee or director of any Member of the Group before having returned to normal employment at the end of the Career Break or during the three-month period referred to in rule 6.1.1, then the Awards will lapse on cessation of employment. If any of the reasons set out in rules 7.2.1 or 7.4 apply, the Awards will Vest and be Released in accordance with rules 4.1 to 4.6 as soon as practicable after cessation of employment. If any of the reasons set out in rules 9.1, 9.2 or 9.5 apply, Awards will Vest and be Released in accordance with those rules. |
7 | Leaving the Group before the end of the Restricted Period |
7.1 | General rule on leaving employment |
Unless rule 7.2 or 7.4 applies, if a Participant ceases to be an employee or director of a Member of the Group, then all his Awards (whether Vested or not) shall lapse on the date of cessation and he shall not be entitled to any Shares.
7.2 | Leaving in exceptional circumstances |
Other than when rule 6.1.2 applies, if a Participant ceases to be an employee or director of any Member of the Group before the end of the Restricted Period for any of the reasons set out below, then his Awards do not lapse and will Vest subject to rules 7.2.3 and 7.2.4 below and be Released to the Participant at the end of the Restricted Period in accordance with rules 4 and 7.2.3 unless the Plan Administrator decides that his Awards Vest and be Released before the end of the Restricted Period.
7.2.1 | The reasons are: |
(i) | termination by the Participants employing company as a result of ill-health, injury or disability; |
(ii) | the Participants employing company ceasing to be under the Control of the Company; |
(iii) | a transfer of the undertaking, or the part of the undertaking, in which the Participant works to a person which is not under the Control of either the Company or a Member of the Group; |
(iv) | redundancy; or |
(v) | any other reason, if the Designated Corporate Officer so decides in any particular case. |
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7.2.2 | The Designated Corporate Officer must exercise any discretion provided for in rule 7.2.1(v) within 80 days after he/she becomes aware of the cessation of the relevant Participants employment or office and where the discretion is not exercised in favour of the Participant the Awards will be treated as having lapsed on the date of cessation. |
7.2.3 | The number of Shares in respect of which an Award Vests under rule 7.2.1 will, unless the Designated Corporate Officer decides otherwise, either be reduced on a pro rata basis to reflect the portion of the Restricted Period which had not elapsed on the date the Participant ceased to be an employee or director of any Member of the Group or on any other basis as determined by the Designated Corporate Officer. |
7.2.4 | Rule 7.2.3 will not apply (and so there will be no pro rata reduction) unless the Designated Corporate Officer decides otherwise where the Participant has ceased to be an employee as a result of ill-health, injury or disability. |
7.2.5 | An Option which does not lapse when the Participant leaves employment will be exercisable for a period of 12 months from the date of leaving or, if later, the date on which it Vests. |
7.3 | Leaving after the end of the Restricted Period but before the Release of Awards |
Subject to rule 5, if a Participant ceases to be an employee or director of any Member of the Group after the end of the Restricted Period but before the Release of Awards (because of, for example, any Dealing Restrictions), then his Awards will not lapse. In these circumstances, the Awards will still Vest in accordance with rule 4.
7.4 | Death |
If a Participant dies, his Awards do not lapse but will Vest on the date of death. An Option which Vests under this rule 7.4 will lapse 12 months after the date of Vesting. The Awards will be Released to his personal representative(s) as soon as possible after the date of death. The Designated Corporate Officer will determine the number of Shares to be Released in respect of Awards. For the avoidance of doubt, the Plan Administrator may decide to satisfy such Release in cash calculated in accordance with rule 4.4.
7.5 | Meaning of ceasing to be an employee or director |
For the purposes of this rule 7, a Participant will not be treated as ceasing to be an employee or director of a Member of the Group until he ceases to be an employee or director of any Member of the Group or if he recommences employment with a Member of the Group within seven days of cessation.
8 | Variations in share capital, demergers and special distributions |
If there is:
(a) | a variation in the equity share capital of the Company, including a capitalisation or rights issue, sub-division, consolidation or reduction of share capital; or |
(b) | a demerger (in whatever form) or exempt distribution by virtue of Section 213 of the Income and Corporation Taxes Act 1988; or |
(c) | a special dividend or distribution, |
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the number or class of Shares or securities subject to the Award and (in the case of an Option) the Option Price shall be adjusted in such manner as the Designated Corporate Officer may determine.
9 | Takeovers and restructurings |
9.1 | Takeovers |
Where, before the end of the Restricted Period, a person (or a group of persons acting in concert) obtains Control of the Company as a result of making an offer to acquire Shares, Awards will Vest, subject to rules 2.4 and 9.4, on the date the person obtains Control and will be Released to a Participant as soon as practicable thereafter (in the case of Options, subject to valid exercise and payment of any Option Price). The Designated Corporate Officer will determine the number of Shares to be Released in respect of Awards.
9.2 | Schemes of arrangement |
When, before the end of the Restricted Period, a court sanctions a compromise or arrangement in connection with the acquisition of Shares, Awards will Vest, subject to rules 2.4 and 9.4, on the date of court sanction and will be Released as soon as practicable thereafter (in the case of Options, subject to valid exercise and payment of any Option Price). This rule applies to a court sanction under Section 899 of the Companies Act 2006 or equivalent procedure under local legislation. The Designated Corporate Officer will determine the number of Shares to be Released in respect of Awards.
9.3 | Lapse of Options |
An Option will be exercisable under rules 9.1 and 9.2 for a period of two months or, if earlier, for a period of six weeks after the date on which a notice to acquire Shares under section 979 of the Companies Act 2006 is first served and will lapse at the end of that period to the extent it has not been exercised or exchanged.
9.4 | Exchange |
Awards will not Vest under either rule 9.1 or 9.2 but Awards will be exchanged under rule 10 to the extent that:
9.4.1 | an offer to exchange the Awards is made and accepted by a Participant; or |
9.4.2 | the Designated Corporate Officer, with the consent of the Acquiring Company, decides before the person obtains Control (where rule 9.1 applies) or court sanction (where rule 9.2 applies) that the Awards will be automatically exchanged. |
9.5 | Demergers or other corporate events |
9.5.1 | If the Designated Corporate Officer becomes aware that the Company is or is expected to be affected by any demerger, distribution (other than an ordinary dividend) or other transaction not falling within rules 9.1 or 9.2 which, in the opinion of the Designated Corporate Officer would affect the current or future value of any Awards, the Designated Corporate Officer may determine that Awards will Vest. The Designated Corporate Officer will determine the number of Shares to be Released and when (in the case of Options, subject to rule 4.2.2). |
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9.5.2 | The Company will notify any Participant who is affected by the Designated Corporate Officer exercising their discretion under this rule. |
9.5.3 | An Option will be exercisable for a period of two months following Vesting under rule 9.5.1 and will lapse at the end of that period to the extent it has not been exercised. |
9.6 | Designated Corporate Officer |
In this rule 9, Designated Corporate Officer means the person who was the Designated Corporate Officer immediately before the change of Control.
9.7 | Overseas transfer |
If a Participant is transferred to work in another country and, as a result of that transfer he would:
9.7.1 | suffer a tax disadvantage in relation to his Awards and/or their Vesting or Release (this being shown to the satisfaction of the Designated Corporate Officer); or |
9.7.2 | become subject to restrictions on his ability to receive or to hold or deal in the Shares or the proceeds of the sale of the Shares because of the security laws or exchange control laws of the country to which he is transferred, |
then if the Participant continues to hold an office or employment with a Member of the Group, the Designated Corporate Officer may in exceptional circumstances decide that Awards will Vest and be Released on a date the Designated Corporate Officer chooses before or after the transfer takes effect (in the case of Options, subject to rule 4.2.2). The Vesting and Release of those Shares will be made in respect of the number of Awards the Designated Corporate Officer permits.
An Option will be exercisable for a period of two months following Vesting under this rule 9.7 and will lapse at the end of that period to the extent it has not been exercised.
10 | Exchange of Awards |
10.1 | Timing of exchange |
Where Awards are to be exchanged under rules 9.1 and 9.2, the exchange will take place as soon as practicable after the relevant event.
10.2 | Exchange terms |
Where a Participant is granted new Awards in exchange for existing Awards, the new Awards:
10.2.1 | must be equivalent to the existing Awards; |
10.2.2 | are treated as having been acquired at the same time as the existing Awards and will Vest and be Released in the same manner and at the same time; |
10.2.3 | are governed by the Plan as if references to Shares were references to the shares in respect of which the new Awards are granted and references to the Company were references to the Acquiring Company; |
10.2.4 | may provide (at the discretion of the Designated Corporate Officer) that the Vesting and Release of Shares is subject to conditions. |
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11 | Terms of employment |
11.1.1 | For the purposes of this rule 11, Employee means any person who was, is or will be eligible to be a Participant, or contends such eligibility. |
11.1.2 | This rule applies: |
(i) | whether the Company has full discretion in the operation of the Plan, or whether the Company could be regarded as being subject to any obligations in the operation of the Plan; |
(ii) | during an Employees employment or employment relationship with any Member of the Group; and |
(iii) | after the termination of an Employees employment or employment relationship, whether the termination is lawful or unlawful. |
11.1.3 | Nothing in the rules or the operation of the Plan forms part of the contract of employment or employment relationship of an Employee. The rights and obligations arising from the employment relationship between the Employee and the Company or any Member of the Group are separate from, and are not affected by, the Plan. Participation in the Plan does not create any right to, or expectation of, continued employment or a continued employment relationship. |
11.1.4 | The grant of Awards on a particular basis in any year does not create any right to or expectation of the grant of Awards on the same basis, or at all, in any future year. |
11.1.5 | The benefit to an Employee of participating in the Plan shall not form any contractual right and shall not be pensionable or benefit-bearing. |
11.1.6 | No Employee has a right to participate in the Plan, or be considered for participation in it, at a particular level or at all. Participation in one operation of the Plan does not imply any right to participate, or to be considered for participation in any later operation of the Plan. |
11.1.7 | Without prejudice to an Employees right in respect of Awards, including their Vesting or Release, subject to and in accordance with the express terms of the Plan, no Employee has any rights in respect of the exercise or omission to exercise any discretion, or the making or omission to make any decision, relating to the Awards or their Vesting or Release. Any and all discretions, decisions or omissions relating to the Awards or their Vesting or Release may operate to the disadvantage of the Employee, even if this could be regarded as capricious or unreasonable, or could be regarded as in breach of any implied term between the Employee and his employer, including any implied duty of trust and confidence. Any such implied term is excluded and overridden by this rule. |
11.1.8 | No Employee has any right to compensation for any loss in relation to the Plan, including: |
(i) | any loss or reduction of any rights or expectations under the Plan in any circumstances or for any reason (including lawful or unlawful termination of employment or the employment relationship); |
(ii) | any exercise of a discretion or a decision taken in relation to Awards or to the Plan, or any failure to exercise a discretion or take a decision; |
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(iii) | the operation, suspension, termination or amendment of the Plan, or any grant of Awards or their Vesting or Release. |
11.1.9 | Participation in the Plan is permitted only on the basis that the Participant accepts all the provisions of its rules, including in particular this rule. By participating in the Plan, an Employee waives all rights under the Plan, other than the right to acquire Shares subject to and in accordance with the express terms of the Plan in consideration for, and as a condition of, the grant of Awards under the Plan. |
11.1.10 | Nothing in this Plan confers any benefit, right or expectation on a person who is not an Employee. No such third party has any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Plan. This does not affect any other right or remedy of a third party which may exist. |
11.1.11 | Each of the provisions of this rule is entirely separate and independent from each of the other provisions. If any provision is found to be invalid then it will be deemed never to have been part of these rules and to the extent that it is possible to do so, this will not affect the validity or enforceability of any of the remaining provisions. |
12 | General |
12.1 | Decisions are final and binding |
The decision of the Designated Corporate Officer and where relevant the Plan Administrator on the interpretation of the Plan or in any dispute relating to Awards, including their grant, Vesting and Release, or any matter relating to the Plan will be final and conclusive.
12.2 | Documents sent to shareholders |
The Company may, if it considers it appropriate, send to Participants copies of any documents or notices normally sent to the holders of its Shares at or around the same time as issuing them to the holders of its Shares.
12.3 | Costs |
The Company may ask a Participants employer to bear the costs in respect of Awards, including their grant, Vesting and Release to that Participant.
12.4 | Regulations |
The Designated Corporate Officer has the power from time to time to make or vary regulations for the administration and operation of the Plan but these must be consistent with its rules.
12.5 | Employee trust |
Any Member of the Group may provide money to the trustee of any trust or any other person to enable them or him to acquire Shares to be held for the purposes of the Plan, or enter into any guarantee or indemnity for those purposes, to the extent permitted by Section 682 of the Companies Act 2006.
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12.6 | Use of information |
By participating in the Plan and accepting an Award, the Participant consents to the holding and processing of personal information the Participant provides for all purposes relating to the operation of the Plan in accordance with the applicable privacy statement and the Companys Fair Processing Notice, as updated from time to time. These purposes include, but are not limited to:
12.6.1 | administering and maintaining Participant records; |
12.6.2 | providing information to Members of the Group, trustees of any employee benefit trust, registrars, brokers, tax advisors appointed by the Company or third-party administrators of the Plan; and |
12.6.3 | providing information to future purchasers or merger partners of the Company, the Participants employing company, or the business in which the Participant works. |
The basis for any processing of personal information about the Participant under the EUs General Data Protection Regulation (2016/679) (or any successor laws, including its incorporation into UK law as the UK GDPR) is set out in the applicable privacy statement and the Companys Fair Processing Notice and is not the consent given under rule 12.6.
The applicable privacy statement and the Companys Fair Processing Notice also contain details about how the Participants personal information is processed and the Participants rights in relation to that information. The Participant has a right to review the applicable privacy statement and the Companys Fair Processing Notice.
12.7 | Consents |
All allotments and transfers of Shares will be subject to any necessary consents under any relevant enactments or regulations for the time being in force in the United Kingdom or elsewhere. The Participant will be responsible for complying with any requirements he needs to fulfil in order to obtain or avoid the necessity for any such consent.
12.8 | Share rights |
Shares issued to satisfy Awards will rank equally in all respects with the Shares in issue on the date of allotment.
12.9 | Articles of association |
Any Shares acquired under the Plan are subject to the articles of association of the Company from time to time in force.
12.10 | Notices |
12.10.1 | Any notice or other document which has to be given to a person who is or will be eligible to be a Participant under or in connection with the Plan may be: |
(i) | delivered or sent by post to him at his home address according to the records of his employing company; or |
(ii) | sent by e-mail to any e-mail address which according to the records of his employing company is used by him; or |
(iii) | posted on the Companys website; |
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or in the case of rules 12.10.1(i) or 12.10.1(ii) such other address, for example, work address, which the Plan Administrator considers appropriate.
12.10.2 | Any notice or other document which has to be given to the Plan Administrator or other duly appointed agent under or in connection with the Plan may be delivered or sent by post to it at its registered office (or such other place as the Designated Corporate Officer or duly appointed agent may from time to time decide and notify to Participants) or sent by e-mail to any e-mail address notified to the Participant. |
Notices sent by post will be deemed to have been given on the second day after the date of posting. However, notices sent by or to a Participant who is working overseas will be deemed to have been given on the seventh day after the date of posting. Notices sent by e-mail, in the absence of evidence to the contrary, will be deemed to have been received on the day after sending.
13 | Changing the Plan and termination |
13.1 | Designated Corporate Officers powers |
Subject to rule 13.2, the Designated Corporate Officer may at any time change the Plan in any way.
13.2 | Shareholder approval |
13.2.1 | Except as described in rule 13.2.2, the Company in a general meeting must approve in advance by ordinary resolution any proposed change to the Plan to the advantage of present or future Participants, which relates to: |
(i) | eligibility; |
(ii) | the limits on the number of Shares which may be issued under the Plan; |
(iii) | the individual limit for each Participant under the Plan; |
(iv) | the basis for determining a Participants entitlement to, and the terms of, securities, cash or other benefit to be provided and for the adjustment thereof (if any) if there is a capitalisation issue, rights issue or open offer, sub-division or consolidation of shares or reduction of capital or any other variation of capital; or |
(v) | the terms of this rule 13.2.1. |
13.2.2 | The Designated Corporate Officer can change the Plan and need not obtain the approval of the Company in general meeting for any minor changes: |
(i) | to benefit the administration of the Plan; |
(ii) | to comply with or take account of the provisions of any proposed or existing legislation; or |
(iii) | to obtain or maintain favourable tax, exchange control or regulatory treatment of the Company, any Subsidiary or any present or future Participant. |
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13.3 | Notice |
The Plan Administrator may give written notice of any changes made to any Participant affected.
13.4 | National provisions |
Notwithstanding any other provision of the Plan, but subject always to rules 13.1 and 13.2, the Company may amend or add to the provisions of the Plan it considers necessary or desirable to take account of, or to mitigate, or to comply with relevant overseas laws including but not limited to taxation, securities or exchange control laws, provided that the terms of Awards granted to such Participants are not more favourable overall than the terms of Awards granted to other Participants.
13.5 | Termination |
The Designated Corporate Officer may terminate the Plan at any time. However, Awards granted before such termination will continue to be valid and will Vest and be Released as described in these rules.
14 | Governing law and jurisdiction |
English law governs the Plan. The English courts have exclusive jurisdiction in respect of disputes arising under or in connection with the Plan and Awards, including their grant, Vesting and Release unless the Designated Corporate Officer determines otherwise, in which case proceedings may be taken in any other court of competent jurisdiction.
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Schedule 1
US Schedule
This United States (US) Schedule has been adopted by the Company pursuant to rule 13.4 of the Plan and shall vary the terms of the Plan (including Schedule 2) (and any other related documents) accordingly for all US Participants. For the purposes of this Schedule 1, a US Participant means a Participant who is:
(i) | a US citizen; |
(ii) | a US permanent resident (as may be evidenced by a so-called green card and/or participation in a US tax-qualified pension plan sponsored by a Member of the Group); |
(iii) | a non-US citizen who is posted to the United States as of a Vesting Date and who is (or expected to become) subject to US taxation as a resident alien; or |
(iv) | a non-US citizen to the extent that he or she is or becomes subject to Section 409A of the Internal Revenue Code of 1986, as amended (the Code), with regard to a grant, Vesting or Release of Awards, including a non-resident alien taxpayer, with respect to some portion of a grant, Vesting or Release of Awards that is deemed to be income from a US source. |
Rule 1, definition of Career Break, shall be varied by adding the following:
For US Participants, a Career Break shall only be recognized for purposes of this Plan if the Participant is reasonably expected to return to work with the Company after the expiration of the break and such break is approved by the Company in advance of the breaks onset. The maximum recognized period for a Career Break for US Participants will be six (6) months (or such longer period if the Participant has a legal or contractual right to return to work with the company immediately following the expiration of the break), with a voluntary termination of employment considered to have taken place for purposes of the Plan for any such longer period, as determined in accordance with Section 409A of the Code.
Rule 1 shall be varied by deleting the definition of Control and adding the following definition of Change of Control:
Change of Control for US Participants shall mean a change in the ownership of the Company, change in effective control of the Company or change in the ownership of a substantial portion of the Companys assets, as such phrases are specifically defined by United States Treasury Regulations Section 1.409A-3(i)(5)(v), (vi) and (vii), as applicable to the terms herein and as may hereafter be amended.
Rule 1 shall be varied by deleting the definition of Option Price and adding the following definition of Option Price:
Option Price means the amount payable for each Share on the exercise of an Option, which shall not be any less than the fair market value of the option on the Grant Date.
Rule 3 shall be varied by adding the following as Rule 3.5:
Notwithstanding anything in the Plan rules to the contrary, and consistent with rule 15.1 of this US Schedule, this Plan shall not be considered a funded plan within the meaning of Section 409A of the Code, and any procurement of Shares to accomplish a transfer of Shares to US Participants shall be done in such a manner consistent with rule 15.1 below.
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Rule 4.2.2(ii) shall be varied by adding the following:
Rule 4.2.2(ii) is not intended to be applied to a US Participant. If applicable non-US law requires the general application of rule 4.2.2(ii) to a US Participant, it will be applied in manner consistent with Section 409A of the Code.
Rule 4.4 shall be varied by adding the following:
Rule 4.4 is not intended to be applied to a US Participant. If applicable non-US law requires the general application of rule 4.4 to a US Participant, it will be applied in manner consistent with Section 409A of the Code.
Rule 4.6 shall be varied by adding the following:
Notwithstanding anything in the Plan rules to the contrary, any right of the Company, the Plan Administrator, the Designated Corporate Officer, any employing Company or any other entity to deduct from and set off against the Award any debt, obligation, liability or other amount owed by the US Participant to a Member of the Group, shall be subject to limitations imposed by Section 409A of the Code.
Rule 4 shall be varied by adding the following as rule 4.7:
Notwithstanding anything contained in the Plan rules to the contrary, no issue or transfer of Shares or payment pursuant to this Plan may be made later than 21⁄2 (two and a half) months after the end of the Restricted Period.
Rule 6 shall be varied by adding the following:
Rule 6 is not intended to be applied to a Participant who is considered a US Participant based on his status as a US citizen or a US permanent resident and who is employed by a Member of the Group located in the United States. If applicable non-US law requires the general application of rule 6 to any US Participant, rule 6 will be applied in a manner consistent with the provisions of rule 7.2 of this US Schedule.
Rule 7.2 shall be replaced in its entirety to read as follows:
7.2 | Leaving in exceptional circumstances |
If a US Participant ceases to be employed by any Member of the Group before the end of the Restricted Period for any of the reasons set out below, his Awards do not lapse and will Vest and be Released after the end of the Restricted Period. The reasons are:
(1) Disability. For the purposes of this rule, a US Participant will be considered disabled if he is (A) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (B) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 (three) months under an accident and health plan covering employees of a Member of the Group; or (C) otherwise disabled within the meaning of the Code; or
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(2) A US Participants involuntary termination of employment with any Member of the Group, other than due to such Participants conduct or performance. For avoidance of doubt, the following circumstances will be considered an involuntary termination of employment: (A) termination of a US Participants employment by his or her employer, or a termination considered by the Designated Corporate Officer to have been initiated by the US Participants employer, in both cases where the termination is not based on the US Participants conduct or performance; (B) a US Participants employing Member of the Group ceasing to be under the Control of the Company or (C) a sale of assets or other transaction resulting in the loss of the US Participants employment with any Member of the Group. In no event will a resignation be considered an involuntary termination of employment, regardless of whether the US Participant experienced a change in duties or work location resulting in his resignation.
(3) If a US Participants termination of employment occurs by mutual agreement between the Participant and the Company to an agreed and planned exit, the Designated Corporate Officer may in his sole discretion permit the Award to continue to Vest according to its original terms.
Rules 7.2.3 and 7.2.5 shall remain as stated in the Plan rules.
Rule 7.4 shall be varied by replacing the final sentence with the following:
Unless the grant document states otherwise, the Shares will in all circumstances be delivered within 90 days after the date of the Participants death.
Rule 8 shall be varied by adding the following phrase at the end:
, which shall not be less than the applicable fair market price.
Rule 9.1 shall be varied by adding the following:
Rule 9.1 will only apply when the Change of Control or corporate event described therein constitutes a Change of Control as defined in this US Schedule. As well, and notwithstanding anything in the Plan rules to the contrary, the issue or transfer of Shares upon Vesting shall be accomplished no later than 90 days after such corporate event.
Rule 9.4 shall be varied by adding the following:
Rule 9.4 is not intended to be applied to a US Participant.
Rule 9.6 shall be varied by adding the following:
The use of the term change of Control shall be changed to read Change of Control, as defined in this US Schedule.
Rule 9.7 shall be varied by adding the following:
Rule 9.7 is not intended to be applied to a US Participant.
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The following shall be added as rule 15
15 | US Tax Compliance and Deferrals |
15.1 | Compliance with Section 409A and Other Applicable Laws |
Notwithstanding any provision of the Plan to the contrary, the Plan is intended to comply with the requirements of Section 409A of the Code with respect to US Participants. Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with Section 409A of the Code to the extent required. Notwithstanding any provision of the Plan to the contrary, if a US Participant is a specified employee within the meaning of Section 409A of the Code at the time of separation from service, to the extent necessary to comply with Section 409A of the Code, any payment required under this Plan shall be held for delayed payment and shall be distributed on or immediately after the date which is 6 (six) months after the date of the Participants separation from service, or death if earlier. In no event may the US Participant, directly or indirectly, designate the calendar year of a payment. Notwithstanding any provision of this Plan to the contrary, this Plan shall also be unfunded for the purposes of Section 409A of the Code.
Notwithstanding any provision of this Plan to the contrary, the Designated Corporate Officer may amend or terminate the grant, Vesting and/or Release of Awards under this Plan at any time and without prior notice if the Designated Corporate Officer determines in its sole discretion that such action is necessary or advisable to avoid or mitigate potential non-compliance with applicable law or if compliance would create unreasonable administrative burdens. If the terms of a grant, Vesting or Release of an Award are amended or terminated, the Company is under no obligation to provide any consideration or remuneration in lieu of the grant, Vesting and/or Release of the Award.
All taxes, penalties, or interest imposed on any Participant due to any failure to comply with Section 409A of the Code or other tax rule shall be the Participants responsibility and no Member of the Group shall have any obligation to keep the Participant whole.
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Schedule 2
Restricted Cash Units
1 | Rules |
The rules of the Reinvent bp Plan (the Plan) will apply to grants made under this Schedule 2, as modified by the terms of this Schedule 2 and (to the extent necessary) as modified by Schedule 1.
2 | Definitions |
Restricted Cash Units means a conditional entitlement to a payment of cash as described in paragraph 3 of this Schedule 2;
Unrestricted Cash Units means an unconditional entitlement to a payment of cash as described in paragraph 6 of this Schedule 2.
3 | Restricted Cash Units |
Restricted Share Units will be referred to for the purposes of this Schedule 2 as Restricted Cash Units. Any Restricted Cash Units granted under this Schedule 2 will give Participants a right to receive a cash sum only. No Shares may be issued or transferred in satisfaction of grants under this Schedule 2 and references to Restricted Share Units, Vesting and Release shall be construed accordingly.
4 | No rights as shareholders |
As a result only of their participation under this Schedule 2, Participants will have no rights as shareholders of the Company and no rights to acquire Shares.
5 | Payments of cash |
Subject to paragraph 6 of this Schedule 2, after the end of the Restricted Period for grants made under this Schedule 2 (and once any determinations are made under rule 4.2 of the Plan, if applicable) the Plan Administrator will determine the number of Shares which would have Vested had a grant of Restricted Share Units been made rather than a grant of Restricted Cash Units and shall make a cash payment to the Participant in accordance with rule 4.4 of the Plan.
6 | Grant of Unrestricted Cash Units |
6.1 | The Plan Administrator may decide at any time after the end of the Restricted Period for grants made under this Schedule 2 (and once any determinations are made under rule 4.2 of the Plan, if applicable) that a Participant will be granted Unrestricted Cash Units rather than made a cash payment in accordance with paragraph 5 of this Schedule 2. |
6.2 | A grant of Unrestricted Cash Units will represent the number of Shares which would have Vested had a grant of Restricted Share Units been made rather than a grant of Restricted Cash Units. Unrestricted Cash Units will give Participants a right to receive a cash sum only. |
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6.3 | Where a dividend is paid on a Share, the Plan Administrator may, in his absolute discretion, adjust the number of Unrestricted Cash Units held by a Participant or take any other such action which it deems appropriate. |
6.4 | A Participant may at any time direct the Company to make him a cash payment in respect of all or part of his Unrestricted Cash Units. The direction will be in such form as the Company may decide. The payment will be made as soon as practicable after receipt of the direction. |
6.5 | The cash payment to be made under paragraph 6.4 of this Schedule 2 will be calculated by multiplying the number of Unrestricted Cash Units in respect of which the direction is made by the market value of a Share (as determined by the Designated Corporate Officer) on a date to be determined by the Plan Administrator on the basis of one Share for each Unrestricted Cash Unit. |
6.6 | The Plan Administrator may determine a minimum number of Unrestricted Cash Units that a direction may be made in respect of. |
6.7 | Where a Participant ceases to be employed by a Member of the Group, he shall be treated as having made a direction as set out in paragraph 6.4 of this Schedule 2 on the date on which he ceases to be an employee. |
6.8 | Rule 4.6 of the Plan will apply in relation to any payments made under paragraph 6 of this Schedule 2. |
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Exhibit 4.2
BP p.l.c.
RULES OF THE REINVENT BP PLAN (B)
Adoption: | 9 February 2021 | |
Expiry: | 15 April 2025 |
Approved by: | Date: | |
Bernard Looney, Chief Executive Officer, BP p.l.c.
|
Linklaters
One Silk Street
Telephone (44-20) 7456 2000
Facsimile (44-20) 7456 2222
Ref 01/140
Table of Contents
Contents | Page | |||||
1 | Definitions | 1 | ||||
2 | Operation of the Plan | 2 | ||||
3 | Awards | 3 | ||||
4 | Vesting and Release of Awards | 4 | ||||
5 | Malus and clawback | 6 | ||||
6 | Career Breaks | 8 | ||||
7 | Leaving the Group before the end of the Restricted Period | 8 | ||||
8 | Variations in share capital, demergers and special distributions | 10 | ||||
9 | Takeovers and restructurings | 10 | ||||
10 | Exchange of Awards | 11 | ||||
11 | Terms of employment | 12 | ||||
12 | General | 13 | ||||
13 | Changing the Plan and termination | 15 | ||||
14 | Governing law and jurisdiction | 16 | ||||
Schedule 1 US Schedule | 17 | |||||
Schedule 2 Restricted Cash Units | 21 |
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Rules of the Reinvent bp Plan (B)
1 | Definitions |
In these rules:
Acquiring Company means a person who obtains Control of the Company;
ADS means an American depositary share representing ordinary shares of the Company;
Award means an award of Restricted Share Units or an Option;
Career Break means an extended period of unpaid leave from normal work, without ceasing to be an employee or director of any Member of the Group, with the agreement of the Company and which is designated by the Plan Administrator as a Career Break for the purposes of these rules;
Company means BP p.l.c.;
Control has the meaning given to it by section 995 of the Income Tax Act 2007;
Dealing Restrictions means restrictions on dealing imposed by statute, order, regulation, directive or by any policy adopted by the Company whether pursuant to regulatory requirements or otherwise, as varied from time to time;
Designated Corporate Officer means the Group Chief Executive or other appropriate Corporate Officer or such duly authorised person authorised under BPs System of Internal Control and associated delegations;
Final Exercise Date means the day before the tenth anniversary of the Grant Date of an Option or such earlier date determined by the Designated Corporate Officer on or before the Grant Date;
Grant Date means the date which the Plan Administrator sets for the grant of an Award;
London Stock Exchange means London Stock Exchange plc;
Member of the Group means:
(i) | the Company; and |
(ii) | its Subsidiaries from time to time; and |
(iii) | any other company which is associated with the Company and is so designated by the Designated Corporate Officer; |
and Group shall be construed accordingly;
New York Stock Exchange means New York Stock Exchange LLC;
Option means a conditional right to acquire Shares by the exercise of that right;
Option Price means the amount, if any, payable for each Share on the exercise of an Option;
Participant means a person who is participating in the Plan or his personal representative(s);
Plan means these rules known as The Reinvent bp Plan (B) as changed from time to time;
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Plan Administrator means the person or persons appointed by the Designated Corporate Officer as the plan administrator for the purposes of this Plan;
Regulatory Information Service means a service that is approved by the Financial Conduct Authority as meeting the Primary Information Provider Criteria and is on the list of the Regulatory Information Services maintained by the Financial Conduct Authority;
Release means the conversion of Restricted Share Units into, or the settlement of Options with, Shares and the transfer of those Shares and Released shall be construed accordingly;
Restricted Period means the period notified to the Participant under rule 3.1, which will be determined by the Designated Corporate Officer at the time of grant;
Restricted Share Unit means a conditional entitlement to receive Shares for free;
Shares means fully paid ordinary shares in the capital of the Company or where the context requires ADSs (see rule 4.5);
Subsidiary means a company which is a subsidiary of the Company within the meaning of Section 1159 of the Companies Act 2006;
Vesting means the satisfaction of conditions such that:
(a) | in the case of Restricted Share Units, a Participant has an unconditional right to have his Restricted Share Units Released; and |
(b) | in the case of Options, the Option becomes exercisable, and |
in either case, subject to any malus or clawback under rule 5 and Vest or Vested shall be construed accordingly; and
Vesting Date is the date on which an Award Vests.
2 | Operation of the Plan |
2.1 | Eligibility |
Awards may be granted to employees of the Members of the Group (as this definition is modified as set out below) selected by the Designated Corporate Officer who are employed on a date determined by the Designated Corporate Officer. However, participation may not be extended to an employee who on the Grant Date is either:
2.1.1 | a director of the Company; or |
2.1.2 | an employee whose employment has been terminated, whether or not such termination is lawful unless the Designated Corporate Officer considers that special circumstances exist. |
For the purpose of this rule 2.1, the reference to Subsidiaries in the definition of Member of the Group shall mean companies which are Subsidiaries wholly owned by the Company, and Members of the Group continues to include any other company which is associated with the Company and is so designated by the Designated Corporate Officer.
2
2.2 | Grant |
Where | an Award is granted in accordance with rule 2.1, the Company will determine: |
2.2.1 | the number of Shares subject to the Award; |
2.2.2 | the Restricted Period; |
2.2.3 | whether the Award will be an Award of Restricted Share Units, an Option, or a combination; |
2.2.4 | the Option Price (if relevant) which may be nil; and |
2.2.5 | for an Option, the Final Exercise Date. |
Awards and their terms must be approved in advance by the Designated Corporate Officer.
2.3 | Timing of operation |
Awards may be granted at any time as determined by the Designated Corporate Officer, subject to Dealing Restrictions.
No Awards may be granted after 15 April 2025 or such earlier date as the Designated Corporate Officer may specify.
2.4 | No payment |
A Participant is not required to pay for the grant of an Award.
2.5 | Disclaimer of Awards |
Any Participant may disclaim all or part of an Award within 80 days after the Grant Date by notice in writing to any person nominated by the Company. If this happens, the Award will be deemed never to have been granted under the Plan. A Participant is not required to pay for the disclaimer.
3 | Awards |
3.1 | Terms of Grant |
Awards are subject to the rules of the Plan and/or such other terms as may be determined on or before the Grant Date by the Designated Corporate Officer. The terms of the grant of an Award, as determined by the Company and approved by the Designated Corporate Officer, must include the number of Shares comprised in the Award, the Restricted Period and, in the case of Options, the Option Price (which may be nil) and the Final Exercise Date.
3.2 | Documentation of Restricted Share Units and Options |
The Company may notify a Participant of the terms of his grant of Restricted Share Units and/or Options in such manner as it decides.
3.3 | Rights |
A Participant will have no rights of a shareholder (e.g. voting or dividends) in respect of Restricted Share Units or Options.
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3.4 | Restriction on disposal of interest and hedging |
A Participant must not sell, transfer, assign, hedge, charge or otherwise dispose of any Restricted Share Units or Options or any interest in them and must not enter into any transaction which transfers the risk of price movements with regard to the Shares subject to an Award. If he does, then the Designated Corporate Officer may determine that the Award will lapse. This will not apply to any disposal permitted under rule 4.6 or the transfer of Shares on a Participants death to his personal representatives.
4 | Vesting and Release of Awards |
4.1 | Time of Vesting |
Subject to rules 5 to 7 and rule 9, Awards will Vest at the end of the Restricted Period.
4.2 | Consequences |
4.2.1 | Restricted Share Units |
Subject to rule 5, to the extent that Restricted Share Units Vest under any of rule 4, 7 or 9, the Company will procure the Release of Awards to the Participant (or as the Participant may direct) as soon as practicable after the Vesting Date. Where Shares are transferred to a Participant, the Participant will be entitled to all rights attaching to the Shares by reference to a record date on or after the transfer date. The Participant will not be entitled to rights before that date.
4.2.2 | Options |
Subject to rule 5, to the extent that Options Vest under any of rule 4, 7 or 9:
(i) | an Option can be exercised by the Participant giving notice in the prescribed form to the Company or any person nominated by the Company and comply with such arrangements as the Designated Corporate Officer may determine for the payment of the Option Price (if any) including, without limitation, the sale of sufficient Shares to procure the payment of the Option Price; |
(ii) | the Designated Corporate Officer may decide at any time that the exercise of an Option may be satisfied by the Company: |
(a) | arranging for the transfer to the Participant of Shares with a market value equal to the Gain on the date of exercise of the Option (rounded down to the nearest whole Share). The Participant will not be required to make any payment for those Shares; and/or |
(b) | making a cash payment to the Participant equal to the Gain on the date of exercise of the Option. |
Where an Option is satisfied in the manner described in rule 4.2.2(ii), this will be in full and final satisfaction of the Participants rights under their Option.
For the purposes of this rule:
Gain means the difference between (i) the market value of a Share on the date of exercise of an Option and (ii) the Option Price, multiplied by the number of Shares in respect of which the Option is being exercised; and
market value means such value as the Designated Corporate Officer reasonably determines in their sole and absolute discretion;
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(iii) | subject to a valid exercise of the Option, the Company will arrange subject to rule 4.6 for the transfer to, or to the order of, the Participant, of the number of Shares in respect of which the Option is exercised; |
(iv) | unless the Designated Corporate Officer determines otherwise, to the extent that an Option has not been exercised by the close of business on the Final Exercise Date, the Company will, unless it has received notice in writing to the contrary and subject to the condition set out below being satisfied, be deemed to have received a valid exercise notice immediately preceding the close of business on the Final Exercise Date, together with a direction to sell sufficient of the Shares transferred on the exercise of the Option to fund any Option Price and any taxation or social security contributions payable. The remaining Shares subject to the Option will be transferred to the Participant in accordance with this rule. |
The condition referred to above is that AB is greater than C, calculated as follows: A equals the expected sale proceeds of the Shares resulting from the exercise of the Option. B equals any costs of any sale (including any Option Price, any actual or estimated liability to taxation, social security contributions and any other related costs in respect of the Option) and C equals the Option Price;
(v) | the Option will lapse to the extent not validly exercised, at the latest, on the close of business on the Final Exercise Date; and |
(vi) | if an Option lapses under more than one provision of the rules of the Plan, the provision resulting in the shortest exercise period will prevail. |
4.3 | Lapse |
If any Restricted Share Units or Options lapse under the Plan, they will not be Released and a Participant will have no rights in respect of them.
4.4 | Cash alternative |
The Company in its absolute discretion may decide to satisfy the Release of Awards, in part or in whole, by paying an equivalent amount in cash (subject to the withholding provisions in rule 4.6). Equivalency will be determined in the sole discretion of the Plan Administrator. In the case of an Option, only the Gain (as defined in rule 4.2.2(ii) above) will be satisfied by paying an equivalent amount in cash.
4.5 | ADSs |
The Plan Administrator may determine that certain Restricted Share Units and/or Options and their Release will be in respect of ADSs and references in these rules to Shares, Awards and dividends shall be construed accordingly.
4.6 | Withholding, deductions and offsets |
The Company, any employing company or other Member of the Group or trustee of any employee benefit trust may withhold such amount and make such arrangements as it considers necessary to meet any liability to taxation or social security contributions in respect of Awards or their Release or the transfer of Shares or any change in the rights attaching to them. These arrangements may include the sale of any Shares on behalf of the Participant or the reduction in the number of Shares in respect of which the Award Vests.
5
In addition, it shall be a condition of the Vesting and/or Release of an Award that the Company, any employing Company or other Member of the Group may deduct from and set off against the Shares (whether payable in cash or Shares and whenever payable) any debt, obligation, liability, or other amount owed by the Participant to a Member of the Group, including but not limited to amounts under an expatriate tax policy (as currently in effect or as amended from time to time), or amounts advanced on behalf of the Participant with respect to employment taxes, as determined in the sole discretion of the Plan Administrator.
5 | Malus and clawback |
5.1 | Application of malus and clawback |
Notwithstanding any other rules of the Plan (including, without limitation, rules 7.2, 7.3 and 7.4), the Designated Corporate Officer may decide that malus and/or clawback will apply to an Award if the Designated Corporate Officer has determined that one or more of the following circumstances below (or, in the case of clawback, the circumstances described in rule 5.1.1, 5.1.4, 5.1.6 or 5.1.7) have arisen.
The circumstances are:
5.1.1 | the Participant has engaged in conduct (including, but not limited to, a violation of the BP Code of Conduct) which the Designated Corporate Officer considers was contrary to the legitimate expectations of the Company for an employee in the Participants position (or the position occupied by the Participant before he left the Group); |
5.1.2 | results announced for any period have been restated or subsequently appeared materially financially inaccurate or misleading as determined by the Designated Corporate Officer; |
5.1.3 | a business unit or profit centre in which the Participant worked has made a material financial loss as a result of circumstances that could reasonably have been risk-managed and which leads to or is likely to create reputational damage to the Group; |
5.1.4 | any team, business area, Member of the Group or profit centre in which the Participant works has been the subject of any regulatory investigation or has been in breach of any laws, rules or codes of conduct applicable to it or the standards reasonably expected of it; |
5.1.5 | the Designated Corporate Officer determines that material reputational damage has been caused to the Group or any Member of the Group for which the Participant is responsible or accountable and which could have been reasonably avoided or mitigated; |
5.1.6 | an exceptional event or events occur that have had or may have a material effect on the value or reputation of any Member of the Group (excluding an exceptional event or events which have a material adverse effect on global macroeconomic conditions); |
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5.1.7 | the Company or entities representing a material proportion of the Group become insolvent or otherwise suffer a corporate failure so that Shares in the Company cease to have material value, provided that the Designated Corporate Officer determines, following an appropriate review of accountability, that the Participant should be held responsible (in whole or in part) for that insolvency or failure; and |
5.1.8 | any other event as a result of which the directors consider that the application of this rule is appropriate. |
5.2 | Malus |
Where the Designated Corporate Officer decides that malus will apply to a Participant:
5.2.1 | the Award will lapse or, in the case of owned Shares, will be forfeited, wholly or in part as they may determine; and/or |
5.2.2 | the Restricted Period for any Award will be extended by such period as he may determine; and/or |
5.2.3 | if the Award has already Vested but Shares have not yet been Released (because of, for example, any Dealing Restrictions), a reduced number of Shares as determined by the Designated Corporate Officer will be Released to the Participant. |
5.3 | Clawback |
Where the Designated Corporate Officer decides that clawback will apply, the Designated Corporate Officer may decide that the Participant must:
5.3.1 | transfer to or to the order of the Company a number of Shares which is equal to (or less than) the number of Shares transferred to them pursuant to the Award; and/or |
5.3.2 | pay to or to the order of the Company an amount representing the value of the Shares acquired under the Award; and/or |
5.3.3 | pay to or to the order of the Company an amount equal to any cash payment made to them pursuant to the Award. |
In addition, the Designated Corporate Officer may decide that any Award, bonus or other benefit which might have been granted, Vested or paid to the Participant under this or any other arrangement will be reduced, not awarded or not Vest.
5.4 | General |
5.4.1 | For the avoidance of doubt, circumstances described in rule 5.1 can arise even if the Participant was not responsible for the event in question or if it happened before or after the Vesting or grant of the Award. |
5.4.2 | Malus and/or clawback may be applied differently for different Participants or for different Awards held by the same Participant in relation to the same event. |
5.4.3 | The Designated Corporate Officer will notify the Participant of any application of malus or clawback. |
5.4.4 | Without limiting rule 11, the Participant will not be entitled to any compensation in respect of any application of malus or clawback. |
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5.5 | Joining a Competitor Organisation |
Where a Participant has ceased to be an employee but has retained his Award as a consequence of rule 7.2 or 7.3 the directors retain the right to lapse his Award or forfeit his owned Shares if, prior to acquiring the Shares, the Participant joins a Competitor Organisation of any Member of the Group within 12 months of ceasing to be an employee. The directors will have the sole discretion to determine the definition of Competitor Organisation.
6 | Career Breaks |
6.1.1 | If a Participant is on a Career Break on the date that his Awards would ordinarily Vest under the Plan, then unless the Plan Administrator determines otherwise in any particular case, the Awards will Vest and be Released in accordance with rules 4.1 to 4.6 as soon as practicable after the Plan Administrator determines that the Participant has returned to normal employment at the end of the Career Break and has continued to be in his normal employment for a period of three months from the date of return, and in that period has not given or received notice of termination of employment. |
6.1.2 | Unless any of the reasons set out in rules 7.2.1, 7.4, 9.1, 9.2 or 9.5 apply, if the Participant ceases to be an employee or director of any Member of the Group before having returned to normal employment at the end of the Career Break or during the three month period referred to in rule 6.1.1, then the Awards will lapse on cessation of employment. If any of the reasons set out in rules 7.2.1 or 7.4 apply, the Awards will Vest and be Released in accordance with rules 4.1 to 4.6 as soon as practicable after cessation of employment. If any of the reasons set out in rules 9.1, 9.2 or 9.5 apply, Awards will Vest and be Released in accordance with those rules. |
7 | Leaving the Group before the end of the Restricted Period |
7.1 | General rule on leaving employment |
Unless rule 7.2 or 7.4 applies, if a Participant ceases to be an employee or director of a Member of the Group, then all his Awards (whether Vested or not) shall lapse on the date of cessation and he shall not be entitled to any Shares.
7.2 | Leaving in exceptional circumstances |
Other than when rule 6.1.2 applies, if a Participant ceases to be an employee or director of any Member of the Group before the end of the Restricted Period for any of the reasons set out below, then his Awards do not lapse and will Vest subject to rules 7.2.3 and 7.2.4 below and be Released to the Participant at the end of the Restricted Period in accordance with rules 4 and 7.2.3 unless the Plan Administrator decides that his Awards Vest and be Released before the end of the Restricted Period.
7.2.1 | The reasons are: |
(i) | termination by the Participants employing company as a result of ill-health, injury or disability; |
(ii) | the Participants employing company ceasing to be under the Control of the Company; |
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(iii) | a transfer of the undertaking, or the part of the undertaking, in which the Participant works to a person which is not under the Control of either the Company or a Member of the Group; |
(iv) | redundancy; or |
(v) | any other reason, if the Designated Corporate Officer so decides in any particular case. |
7.2.2 | The Designated Corporate Officer must exercise any discretion provided for in rule 7.2.1(v) within 80 days after he/she becomes aware of the cessation of the relevant Participants employment or office and where the discretion is not exercised in favour of the Participant the Awards will be treated as having lapsed on the date of cessation. |
7.2.3 | The number of Shares in respect of which an Award Vests under rule 7.2.1 will, unless the Designated Corporate Officer decides otherwise, either be reduced on a pro-rata basis to reflect the portion of the Restricted Period which had not elapsed on the date the Participant ceased to be an employee or director of any Member of the Group or on any other basis as determined by the Designated Corporate Officer. |
7.2.4 | Rule 7.2.3 will not apply (and so there will be no pro-rata reduction) unless the Designated Corporate Officer decides otherwise where the Participant has ceased to be an employee as a result of ill-health, injury or disability. |
7.2.5 | An Option which does not lapse when the Participant leaves employment will be exercisable for a period of 12 months from the date of leaving or, if later, the date on which it Vests. |
7.3 | Leaving after the end of the Restricted Period but before the Release of Awards |
Subject to rule 5, if a Participant ceases to be an employee or director of any Member of the Group after the end of the Restricted Period but before the Release of Awards (because of, for example, any Dealing Restrictions), then his Awards will not lapse. In these circumstances, the Awards will still Vest in accordance with rule 4.
7.4 | Death |
If a Participant dies, his Awards do not lapse but will Vest on the date of death. An Option which Vests under this rule 7.4 will lapse 12 months after the date of Vesting. The Awards will be Released to his personal representative(s) as soon as possible after the date of death. The Designated Corporate Officer will determine the number of Shares to be Released in respect of Awards. For the avoidance of doubt, the Plan Administrator may decide to satisfy such Release in cash calculated in accordance with rule 4.4.
7.5 | Meaning of ceasing to be an employee or director |
For the purposes of this rule 7, a Participant will not be treated as ceasing to be an employee or director of a Member of the Group until he ceases to be an employee or director of any Member of the Group or if he recommences employment with a Member of the Group within seven days of cessation.
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8 | Variations in share capital, demergers and special distributions |
If there is:
(a) | a variation in the equity share capital of the Company, including a capitalisation or rights issue, sub-division, consolidation or reduction of share capital; or |
(b) | a demerger (in whatever form) or exempt distribution by virtue of Section 213 of the Income and Corporation Taxes Act 1988; or |
(c) | a special dividend or distribution, |
the number or class of Shares or securities subject to the Award and (in the case of an Option) the Option Price shall be adjusted in such manner as the Designated Corporate Officer may determine.
9 | Takeovers and restructurings |
9.1 | Takeovers |
Where, before the end of the Restricted Period, a person (or a group of persons acting in concert) obtains Control of the Company as a result of making an offer to acquire Shares, Awards will Vest, subject to rules 2.4 and 9.4, on the date the person obtains Control and will be Released to a Participant as soon as practicable thereafter (in the case of Options, subject to valid exercise and payment of any Option Price). The Designated Corporate Officer will determine the number of Shares to be Released in respect of Awards.
9.2 | Schemes of arrangement |
When, before the end of the Restricted Period, a court sanctions a compromise or arrangement in connection with the acquisition of Shares, Awards will Vest, subject to rules 2.4 and 9.4, on the date of court sanction and will be Released as soon as practicable thereafter (in the case of Options, subject to valid exercise and payment of any Option Price). This rule applies to a court sanction under Section 899 of the Companies Act 2006 or equivalent procedure under local legislation. The Designated Corporate Officer will determine the number of Shares to be Released in respect of Awards.
9.3 | Lapse of Options |
An Option will be exercisable under rules 9.1 and 9.2 for a period of two months or, if earlier, for a period of six weeks after the date on which a notice to acquire Shares under section 979 of the Companies Act 2006 is first served and will lapse at the end of that period to the extent it has not been exercised or exchanged.
9.4 | Exchange |
Awards will not Vest under either rule 9.1 or 9.2 but Awards will be exchanged under rule 10 to the extent that:
9.4.1 | an offer to exchange the Awards is made and accepted by a Participant; or |
9.4.2 | the Designated Corporate Officer, with the consent of the Acquiring Company, decides before the person obtains Control (where rule 9.1 applies) or court sanction (where rule 9.2 applies) that the Awards will be automatically exchanged. |
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9.5 | Demergers or other corporate events |
9.5.1 | If the Designated Corporate Officer becomes aware that the Company is or is expected to be affected by any demerger, distribution (other than an ordinary dividend) or other transaction not falling within rules 9.1 or 9.2 which, in the opinion of the Designated Corporate Officer would affect the current or future value of any Awards, the Designated Corporate Officer may determine that Awards will Vest. The Designated Corporate Officer will determine the number of Shares to be Released and when (in the case of Options, subject to rule 4.2.2). |
9.5.2 | The Company will notify any Participant who is affected by the Designated Corporate Officer exercising their discretion under this rule. |
9.5.3 | An Option will be exercisable for a period of two months following Vesting under rule 9.5.1 and will lapse at the end of that period to the extent it has not been exercised. |
9.6 | Designated Corporate Officer |
In this rule 9, Designated Corporate Officer means the person who was the Designated Corporate Officer immediately before the change of Control.
9.7 | Overseas transfer |
If a Participant is transferred to work in another country and, as a result of that transfer he would:
9.7.1 | suffer a tax disadvantage in relation to his Awards and/or their Vesting or Release (this being shown to the satisfaction of the Designated Corporate Officer); or |
9.7.2 | become subject to restrictions on his ability to receive or to hold or deal in the Shares or the proceeds of the sale of the Shares because of the security laws or exchange control laws of the country to which he is transferred, |
then if the Participant continues to hold an office or employment with a Member of the Group, the Designated Corporate Officer may in exceptional circumstances decide that Awards will Vest and be Released on a date the Designated Corporate Officer chooses before or after the transfer takes effect (in the case of Options, subject to rule 4.2.2). The Vesting and Release of those Shares will be made in respect of the number of Awards the Designated Corporate Officer permits.
An Option will be exercisable for a period of two months following Vesting under this rule 9.7 and will lapse at the end of that period to the extent it has not been exercised.
10 | Exchange of Awards |
10.1 | Timing of exchange |
Where Awards are to be exchanged under rules 9.1 and 9.2, the exchange will take place as soon as practicable after the relevant event.
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10.2 | Exchange terms |
Where a Participant is granted new Awards in exchange for existing Awards, the new Awards:
10.2.1 | must be equivalent to the existing Awards; |
10.2.2 | are treated as having been acquired at the same time as the existing Awards and will Vest and be Released in the same manner and at the same time; |
10.2.3 | are governed by the Plan as if references to Shares were references to the shares in respect of which the new Awards are granted and references to the Company were references to the Acquiring Company; |
10.2.4 | may provide (at the discretion of the Designated Corporate Officer) that the Vesting and Release of Shares is subject to conditions. |
11 | Terms of employment |
11.1.1 | For the purposes of this rule 11, Employee means any person who was, is or will be eligible to be a Participant, or contends such eligibility. |
11.1.2 | This rule applies: |
(i) | whether the Company has full discretion in the operation of the Plan, or whether the Company could be regarded as being subject to any obligations in the operation of the Plan; |
(ii) | during an Employees employment or employment relationship with any Member of the Group; and |
(iii) | after the termination of an Employees employment or employment relationship, whether the termination is lawful or unlawful. |
11.1.3 | Nothing in the rules or the operation of the Plan forms part of the contract of employment or employment relationship of an Employee. The rights and obligations arising from the employment relationship between the Employee and the Company or any Member of the Group are separate from, and are not affected by, the Plan. Participation in the Plan does not create any right to, or expectation of, continued employment or a continued employment relationship. |
11.1.4 | The grant of Awards on a particular basis in any year does not create any right to or expectation of the grant of Awards on the same basis, or at all, in any future year. |
11.1.5 | The benefit to an Employee of participating in the Plan shall not form any contractual right and shall not be pensionable or benefit-bearing. |
11.1.6 | No Employee has a right to participate in the Plan, or be considered for participation in it, at a particular level or at all. Participation in one operation of the Plan does not imply any right to participate, or to be considered for participation in any later operation of the Plan. |
11.1.7 | Without prejudice to an Employees right in respect of Awards, including their Vesting or Release, subject to and in accordance with the express terms of the Plan, no Employee has any rights in respect of the exercise or omission to exercise any discretion, or the making or omission to make any decision, relating to the Awards or their Vesting or Release. Any and all discretions, decisions or omissions relating to the Awards or their Vesting or Release may operate to the disadvantage of the Employee, even if this could be regarded as capricious or unreasonable, or could be regarded as in breach of any implied term between the Employee and his employer, including any implied duty of trust and confidence. Any such implied term is excluded and overridden by this rule. |
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11.1.8 | No Employee has any right to compensation for any loss in relation to the Plan, including: |
(i) | any loss or reduction of any rights or expectations under the Plan in any circumstances or for any reason (including lawful or unlawful termination of employment or the employment relationship); |
(ii) | any exercise of a discretion or a decision taken in relation to Awards or to the Plan, or any failure to exercise a discretion or take a decision; |
(iii) | the operation, suspension, termination or amendment of the Plan, or any grant of Awards or their Vesting or Release. |
11.1.9 | Participation in the Plan is permitted only on the basis that the Participant accepts all the provisions of its rules, including in particular this rule. By participating in the Plan, an Employee waives all rights under the Plan, other than the right to acquire Shares subject to and in accordance with the express terms of the Plan in consideration for, and as a condition of, the grant of Awards under the Plan. |
11.1.10 | Nothing in this Plan confers any benefit, right or expectation on a person who is not an Employee. No such third party has any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Plan. This does not affect any other right or remedy of a third party which may exist. |
11.1.11 | Each of the provisions of this rule is entirely separate and independent from each of the other provisions. If any provision is found to be invalid then it will be deemed never to have been part of these rules and to the extent that it is possible to do so, this will not affect the validity or enforceability of any of the remaining provisions. |
12 | General |
12.1 | Decisions are final and binding |
The decision of the Designated Corporate Officer and where relevant the Plan Administrator on the interpretation of the Plan or in any dispute relating to Awards, including their grant, Vesting and Release, or any matter relating to the Plan will be final and conclusive.
12.2 | Documents sent to shareholders |
The Company may, if it considers it appropriate, send to Participants copies of any documents or notices normally sent to the holders of its Shares at or around the same time as issuing them to the holders of its Shares.
12.3 | Costs |
The Company may ask a Participants employer to bear the costs in respect of Awards, including their grant, Vesting and Release to that Participant.
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12.4 | Regulations |
The Designated Corporate Officer has the power from time to time to make or vary regulations for the administration and operation of the Plan but these must be consistent with its rules.
12.5 | Employee trust |
Any Member of the Group may provide money to the trustee of any trust or any other person to enable them or him to purchase 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 682 of the Companies Act 2006.
12.6 | Use of information |
By participating in the Plan and accepting an Award, the Participant consents to the holding and processing of personal information the Participant provides for all purposes relating to the operation of the Plan in accordance with the applicable privacy statement and the Companys Fair Processing Notice, as updated from time to time. These purposes include, but are not limited to:
12.6.1 | administering and maintaining Participant records; |
12.6.2 | providing information to Members of the Group, trustees of any employee benefit trust, registrars, brokers, tax advisors appointed by the Company or third party administrators of the Plan; and |
12.6.3 | providing information to future purchasers or merger partners of the Company, the Participants employing company, or the business in which the Participant works. |
The basis for any processing of personal information about the Participant under the EUs General Data Protection Regulation (2016/679) (or any successor laws, including its incorporation into UK law as the UK GDPR) is set out in the applicable privacy statement and the Companys Fair Processing Notice and is not the consent given under rule 12.6.
The applicable privacy statement and the Companys Fair Processing Notice also contain details about how the Participants personal information is processed and the Participants rights in relation to that information. The Participant has a right to review the applicable privacy statement and the Companys Fair Processing Notice.
12.7 | Consents |
All transfers of Shares will be subject to any necessary consents under any relevant enactments or regulations for the time being in force in the United Kingdom or elsewhere. The Participant will be responsible for complying with any requirements he needs to fulfil in order to obtain or avoid the necessity for any such consent.
12.8 | Share rights |
Shares transferred to satisfy Awards will rank equally in all respects with the Shares in issue on the date of transfer.
12.9 | Articles of association |
Any Shares acquired under the Plan are subject to the articles of association of the Company from time to time in force.
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12.10 | Notices |
12.10.1 | Any notice or other document which has to be given to a person who is or will be eligible to be a Participant under or in connection with the Plan may be: |
(i) | delivered or sent by post to him at his home address according to the records of his employing company; or |
(ii) | sent by e-mail to any e-mail address which according to the records of his employing company is used by him; or |
(iii) | posted on the Companys website; |
or in the case of rules 12.10.1(i) or 12.10.1(ii) such other address, for example, work address, which the Plan Administrator considers appropriate.
12.10.2 | Any notice or other document which has to be given to the Plan Administrator or other duly appointed agent under or in connection with the Plan may be delivered or sent by post to it at its registered office (or such other place as the Designated Corporate Officer or duly appointed agent may from time to time decide and notify to Participants) or sent by e-mail to any e-mail address notified to the Participant. |
Notices sent by post will be deemed to have been given on the second day after the date of posting. However, notices sent by or to a Participant who is working overseas will be deemed to have been given on the seventh day after the date of posting. Notices sent by e-mail, in the absence of evidence to the contrary, will be deemed to have been received on the day after sending.
13 | Changing the Plan and termination |
13.1 | Designated Corporate Officers powers |
Subject to rule 13.2, the Designated Corporate Officer may at any time change the Plan in any way.
13.2 | New issue and treasury shares |
Except with prior shareholder approval, the Designated Corporate Officer must not amend the Plan to allow Awards to be settled with new issue or treasury Shares.
13.3 | Notice |
The Plan Administrator may give written notice of any changes made to any Participant affected.
13.4 | National provisions |
Notwithstanding any other provision of the Plan, but subject always to rules 13.1 and 13.2, the Company may amend or add to the provisions of the Plan it considers necessary or desirable to take account of, or to mitigate, or to comply with relevant overseas laws including but not limited to taxation, securities or exchange control laws, provided that the terms of Awards granted to such Participants are not more favourable overall than the terms of Awards granted to other Participants.
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13.5 | Termination |
The Designated Corporate Officer may terminate the Plan at any time. However, Awards granted before such termination will continue to be valid and will Vest and be Released as described in these rules.
14 | Governing law and jurisdiction |
English law governs the Plan. The English courts have exclusive jurisdiction in respect of disputes arising under or in connection with the Plan and Awards, including their grant, Vesting and Release unless the Designated Corporate Officer determines otherwise, in which case proceedings may be taken in any other court of competent jurisdiction.
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Schedule 1
US Schedule
This United States (US) Schedule has been adopted by the Company pursuant to rule 13.4 of the Plan and shall vary the terms of the Plan (including Schedule 2) (and any other related documents) accordingly for all US Participants. For the purposes of this Schedule 1, a US Participant means a Participant who is:
(i) | a US citizen; |
(ii) | a US permanent resident (as may be evidenced by a so-called green card and/or participation in a US tax-qualified pension plan sponsored by a Member of the Group); |
(iii) | a non-US citizen who is posted to the United States as of a Vesting Date and who is (or expected to become) subject to US taxation as a resident alien; or |
(iv) | a non-US citizen to the extent that he or she is or becomes subject to Section 409A of the Internal Revenue Code of 1986, as amended (the Code), with regard to a grant, Vesting or Release of Awards, including a non-resident alien taxpayer, with respect to some portion of a grant, Vesting or Release of Awards that is deemed to be income from a US source. |
Rule 1, definition of Career Break, shall be varied by adding the following:
For US Participants, a Career Break shall only be recognized for purposes of this Plan if the Participant is reasonably expected to return to work with the Company after the expiration of the break and such break is approved by the Company in advance of the breaks onset. The maximum recognized period for a Career Break for US Participants will be six (6) months (or such longer period if the Participant has a legal or contractual right to return to work with the company immediately following the expiration of the break), with a voluntary termination of employment considered to have taken place for purposes of the Plan for any such longer period, as determined in accordance with Section 409A of the Code.
Rule 1 shall be varied by deleting the definition of Control and adding the following definition of Change of Control:
Change of Controlfor US Participants shall mean a change in the ownership of the Company, change in effective control of the Company or change in the ownership of a substantial portion of the Companys assets, as such phrases are specifically defined by United States Treasury Regulations Section 1.409A-3(i)(5)(v), (vi) and (vii), as applicable to the terms herein and as may hereafter be amended.
Rule 1 shall be varied by deleting the definition of Option Price and adding the following definition of Option Price:
Option Price means the amount payable for each Share on the exercise of an Option, which shall not be any less than the fair market value of the option on the Grant Date.
Rule 3 shall be varied by adding the following as Rule 3.5:
Notwithstanding anything in the Plan rules to the contrary, and consistent with rule 15.1 of this US Schedule, this Plan shall not be considered a funded plan within the meaning of Section 409A of the Code, and any procurement of Shares to accomplish a transfer of Shares to US Participants shall be done in such a manner consistent with rule 15.1 below.
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Rule 4.2.2(ii) shall be varied by adding the following:
Rule 4.2.2(ii) is not intended to be applied to a US Participant. If applicable non-US law requires the general application of rule 4.2.2(ii) to a US Participant, it will be applied in manner consistent with Section 409A of the Code.
Rule 4.4 shall be varied by adding the following:
Rule 4.4 is not intended to be applied to a US Participant. If applicable non-US law requires the general application of rule 4.4 to a US Participant, it will be applied in manner consistent with Section 409A of the Code.
Rule 4.6 shall be varied by adding the following:
Notwithstanding anything in the Plan rules to the contrary, any right of the Company, the Plan Administrator, the Designated Corporate Officer, any employing Company or any other entity to deduct from and set off against the Award any debt, obligation, liability or other amount owed by the US Participant to a Member of the Group, shall be subject to limitations imposed by Section 409A of the Code.
Rule 4 shall be varied by adding the following as rule 4.7:
Notwithstanding anything contained in the Plan rules to the contrary, no transfer of Shares or payment pursuant to this Plan may be made later than 21⁄2 (two and a half) months after the end of the Restricted Period.
Rule 6 shall be varied by adding the following:
Rule 6 is not intended to be applied to a Participant who is considered a US Participant based on his status as a US citizen or a US permanent resident and who is employed by a Member of the Group located in the United States. If applicable non-US law requires the general application of rule 6 to any US Participant, rule 6 will be applied in a manner consistent with the provisions of rule 7.2 of this US Schedule.
Rule 7.2 shall be replaced in its entirety to read as follows:
7.2 | Leaving in exceptional circumstances |
If a US Participant ceases to be employed by any Member of the Group before the end of the Restricted Period for any of the reasons set out below, his Awards do not lapse and will Vest and be Released after the end of the Restricted Period. The reasons are:
(1) Disability. For the purposes of this rule, a US Participant will be considered disabled if he is (A) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (B) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 (three) months under an accident and health plan covering employees of a Member of the Group; or (C) otherwise disabled within the meaning of the Code; or
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(2) A US Participants involuntary termination of employment with any Member of the Group, other than due to such Participants conduct or performance. For avoidance of doubt, the following circumstances will be considered an involuntary termination of employment: (A) termination of a US Participants employment by his or her employer, or a termination considered by the Designated Corporate Officer to have been initiated by the US Participants employer, in both cases where the termination is not based on the US Participants conduct or performance; (B) a US Participants employing Member of the Group ceasing to be under the Control of the Company or (C) a sale of assets or other transaction resulting in the loss of the US Participants employment with any Member of the Group. In no event will a resignation be considered an involuntary termination of employment, regardless of whether the US Participant experienced a change in duties or work location resulting in his resignation.
(3) If a US Participants termination of employment occurs by mutual agreement between the Participant and the Company to an agreed and planned exit date, the Designated Corporate Officer may in his sole discretion permit the Award to continue to Vest according to its original terms.
Rules 7.2.3 and 7.2.5 shall remain as stated in the Plan rules.
Rule 7.4 shall be varied by replacing the final sentence with the following:
Unless the grant document states otherwise, the Shares will in all circumstances be delivered within 90 days after the date of the Participants death.
Rule 8 shall be varied by adding the following phrase at the end:
, which shall not be less than the applicable fair market price.
Rule 9.1 shall be varied by adding the following:
Rule 9.1 will only apply when the Change of Control or corporate event described therein constitutes a Change of Control as defined in this US Schedule. As well, and notwithstanding anything in the Plan rules to the contrary, the transfer of Shares upon Vesting shall be accomplished no later than 90 days after such corporate event.
Rule 9.4 shall be varied by adding the following:
Rule 9.4 is not intended to be applied to a US Participant.
Rule 9.6 shall be varied by adding the following:
The use of the term change of Control shall be changed to read Change of Control, as defined in this US Schedule.
Rule 9.7 shall be varied by adding the following:
Rule 9.7 is not intended to be applied to a US Participant.
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The following shall be added as rule 15
15 | US Tax Compliance and Deferrals |
15.1 | Compliance with Section 409A and Other Applicable Laws |
Notwithstanding any provision of the Plan to the contrary, the Plan is intended to comply with the requirements of Section 409A of the Code with respect to US Participants. Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with Section 409A of the Code to the extent required. Notwithstanding any provision of the Plan to the contrary, if a US Participant is a specified employee within the meaning of Section 409A of the Code at the time of separation from service, to the extent necessary to comply with Section 409A of the Code, any payment required under this Plan shall be held for delayed payment and shall be distributed on or immediately after the date which is 6 (six) months after the date of the Participants separation from service, or death if earlier. In no event may the US Participant, directly or indirectly, designate the calendar year of a payment. Notwithstanding any provision of this Plan to the contrary, this Plan shall also be unfunded for the purposes of Section 409A of the Code.
Notwithstanding any provision of this Plan to the contrary, the Designated Corporate Officer may amend or terminate the grant, Vesting and/or Release of Awards under this Plan at any time and without prior notice if the Designated Corporate Officer determines in its sole discretion that such action is necessary or advisable to avoid or mitigate potential non-compliance with applicable law or if compliance would create unreasonable administrative burdens. If the terms of a grant, Vesting or Release of an Award are amended or terminated, the Company is under no obligation to provide any consideration or remuneration in lieu of the grant, Vesting and/or Release of the Award.
All taxes, penalties, or interest imposed on any Participant due to any failure to comply with Section 409A of the Code or other tax rule shall be the Participants responsibility and no Member of the Group shall have any obligation to keep the Participant whole.
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Schedule 2
Restricted Cash Units
1 | Rules |
The rules of the Reinvent bp Plan (B) (the Plan) will apply to grants made under this Schedule 2, as modified by the terms of this Schedule 2 and (to the extent necessary) as modified by Schedule 1.
2 | Definitions |
Restricted Cash Units means a conditional entitlement to a payment of cash as described in paragraph 3 of this Schedule 2;
Unrestricted Cash Units means an unconditional entitlement to a payment of cash as described in paragraph 6 of this Schedule 2.
3 | Restricted Cash Units |
Restricted Share Units will be referred to for the purposes of this Schedule 2 as Restricted Cash Units. Any Restricted Cash Units granted under this Schedule 2 will give Participants a right to receive a cash sum only. No Shares may be transferred in satisfaction of grants under this Schedule 2 and references to Restricted Share Units, Vesting and Release shall be construed accordingly.
4 | No rights as shareholders |
As a result only of their participation under this Schedule 2, Participants will have no rights as shareholders of the Company and no rights to acquire Shares.
5 | Payments of cash |
Subject to paragraph 6 of this Schedule 2, after the end of the Restricted Period for grants made under this Schedule 2 (and once any determinations are made under rule 4.2 of the Plan, if applicable) the Plan Administrator will determine the number of Shares which would have Vested had a grant of Restricted Share Units been made rather than a grant of Restricted Cash Units and shall make a cash payment to the Participant in accordance with rule 4.4 of the Plan.
6 | Grant of Unrestricted Cash Units |
6.1 | The Plan Administrator may decide at any time after the end of the Restricted Period for grants made under this Schedule 2 (and once any determinations are made under rule 4.2 of the Plan, if applicable) that a Participant will be granted Unrestricted Cash Units rather than made a cash payment in accordance with paragraph 5 of this Schedule 2. |
6.2 | A grant of Unrestricted Cash Units will represent the number of Shares which would have Vested had a grant of Restricted Share Units been made rather than a grant of Restricted Cash Units. Unrestricted Cash Units will give Participants a right to receive a cash sum only. |
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6.3 | Where a dividend is paid on a Share, the Plan Administrator may, in his absolute discretion, adjust the number of Unrestricted Cash Units held by a Participant or take any other such action which it deems appropriate. |
6.4 | A Participant may at any time direct the Company to make him a cash payment in respect of all or part of his Unrestricted Cash Units. The direction will be in such form as the Company may decide. The payment will be made as soon as practicable after receipt of the direction. |
6.5 | The cash payment to be made under paragraph 6.4 of this Schedule 2 will be calculated by multiplying the number of Unrestricted Cash Units in respect of which the direction is made by the market value of a Share (as determined by the Designated Corporate Officer) on a date to be determined by the Plan Administrator on the basis of one Share for each Unrestricted Cash Unit. |
6.6 | The Plan Administrator may determine a minimum number of Unrestricted Cash Units that a direction may be made in respect of. |
6.7 | Where a Participant ceases to be employed by a Member of the Group, he shall be treated as having made a direction as set out in paragraph 6.4 of this Schedule 2 on the date on which he ceases to be an employee. |
6.8 | Rule 4.6 of the Plan will apply in relation to any payments made under paragraph 6 of this Schedule 2. |
22
Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in this Registration Statement on Form S-8 of our reports dated 18 March 2020 relating to the consolidated financial statements of BP p.l.c. (the Company), and the effectiveness of the Companys internal control over financial reporting, appearing in the Annual Report on Form 20-F of the Company for the year ended 31 December 2019.
/s/ Deloitte LLP
London, United Kingdom
19 February 2021
Exhibit 23.2
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in this Registration Statement on Form S-8 pertaining to the Reinvent BP Plan and Reinvent BP Plan (B) of BP p.l.c. of our report dated 29 March 2018, with respect to the group financial statements of BP p.l.c. included in the Annual Report and Form 20-F for the year ended 31 December 2019, filed with the Securities and Exchange Commission.
/s/ Ernst & Young LLP
London, United Kingdom
19 February 2021
Exhibit 23.3
DeGolyer and MacNaughton
5001 Spring Valley Road
Suite 800 East
Dallas, Texas 75244
February 19, 2021
BP p.l.c.
1 St. James Square
London, SW1Y 4PD
United Kingdom
Ladies and Gentlemen:
We hereby consent to the incorporation by reference in this Registration Statement on Form S-8 of (i) the references to DeGolyer and MacNaughton contained in the section entitled Oil and gas disclosures for the group of the Annual Report and Form 20-F for the year ended December 31, 2019, of BP p.l.c. (the Form 20-F) as set forth under the heading Compliance and (ii) our report of third party dated January 15, 2020, presenting our estimates of the net proved oil, condensate, natural gas liquids, and gas reserves, as of December 31, 2019, of certain properties in which PJSC Rosneft Oil Company has represented it holds an interest, which is included as an exhibit to the Form 20-F.
Very truly yours, |
/s/ DeGolyer and MacNaughton |
DeGOLYER and MacNAUGHTON |
Texas Registered Engineering Firm F-716 |
Exhibit 23.4
CONSENT OF INDEPENDENT PETROLEUM ENGINEERS AND GEOLOGISTS
We hereby consent to the incorporation by reference in this Registration Statement on Form S-8 of (i) the reference to Netherland, Sewell & Associates contained in the section entitled Oil and gas disclosures for the group of the Annual Report and Form 20-F for the year ended December 31, 2019, of BP p.l.c. (the Form 20-F), as set forth under the heading Compliance on page 309 and (ii) our third-party letter report dated March 3, 2020, concerning our estimates of the proved reserves and future revenue, as of December 31, 2019, to the BP America Production Company interest in certain oil and gas properties located in the United States (the Third-Party Report), which is included as an exhibit to the Form 20-F.
NETHERLAND, SEWELL & ASSOCIATES, INC. | ||
By: | /s/ Danny D. Simmons | |
Danny D. Simmons, P.E. | ||
President and Chief Operating Officer |
Houston, Texas
February 19, 2021
Exhibit 23.5
Consent of Independent Auditors
We consent to the incorporation by reference in this Registration Statement on Form S-8 pertaining to the Reinvent BP Plan and Reinvent BP Plan (B) of BP p.l.c. of our report dated 27 March 2020, with respect to the consolidated financial statements of Rosneft Oil Company, included in Amendment No. 1 to the Annual Report on Form 20-F/A of BP p.l.c. for the year ended 31 December 2019, filed with the Securities and Exchange Commission.
/s/ Ernst & Young LLC
Moscow, Russia
19 February 2021