AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Hostelworld Group

Remuneration Information Apr 2, 2025

Preview not available for this file type.

Download Source File

author: "John Duggan"
date: 2025-04-01 12:18:00+00:00
processor: python-docx+mammoth
status: success


Hostelworld Group plc

Long Term Incentive Plan

Approved by the Remuneration Committee on 1 April 2025. Approved by shareholders on [7 May 2025]

Table of Contents

1 Grant of Awards 2

2 Plan Limits 3

3 Individual Limits 4

4 Award Price 5

5 Performance Target and conditions 5

6 Reduction of Awards 6

7 Vesting of Awards (and exercise of Options) 10

8 Vesting of Awards (and exercise of Options) in special circumstances 12

9 Takeover, scheme of arrangement or winding-up of the Company 13

10 Exchange of Awards 15

11 Lapse of Awards 16

12 Adjustment of Awards on Reorganisation 16

13 Accounting for PAYE and Social Security contributions 17

14 Issue and listing of Plan Shares 17

15 Relationship of Plan to contract of employment 18

16 Administration of Plan 18

17 Amendment of the Plan 19

18 Notices 20

19 Governing law and jurisdiction 21

20 Interpretation 21

Grant of Awards

Awards granted by the Grantor

Subject to Rules 1.5 , 1.6, 1.7 and 16.3 the Grantor may from time to time grant Awards to Eligible Employees.

Terms of Awards

Subject to the Rules, the Grantor will in its absolute discretion decide whether or not any Awards are to be granted at any particular time and, if they are, to whom they are granted and the terms of such Awards. Where Awards are not granted by the Committee the terms must be approved in advance by the Committee.

Procedure for granting Awards and Award Date

An Award shall be granted by the Grantor passing a resolution. The Award Date shall be the date on which the Grantor passes the resolution or such later date as specified in the resolution and allowed by Rule 1.5. The grant of an Award shall be evidenced by a deed executed by or on behalf of the Grantor. An Award Certificate shall be provided to each Award Holder as soon as reasonably practicable following the grant of the Award.

Terms set at grant

The Grantor shall, at the time of grant, determine the following, which shall be set out in the applicable Award Certificate:

  1. whether the Award comprises an Option or a Conditional Share Award;
  2. the Award Date;
  3. the number of Plan Shares subject to the Award (or the basis on which the number of Plan Shares will be calculated);
  4. the Award Price (if any);
  5. the date or dates on which the Award will Vest;
  6. whether or not any dividend equivalents will be payable under Rule 7.10;
  7. in the case of an Option, the Exercise Period;
  8. any Performance Target;
  9. whether Rule 6.2 (malus) and/or Rule 6.3 (clawback) shall apply to the Award, and if so, which Malus Trigger Events and/or which Clawback Trigger Events apply;
  10. whether a Post-Vesting Holding Period will apply; and
  11. any other conditions of the Award.

When Awards may be granted

Subject to Rule 1.6, the Grantor may in its absolute discretion grant an Award to an Eligible Employee, subject to these Rules, at any time during a Financial Year.

When Awards may not be granted

Awards may not be granted:

  • when prevented by any Dealing Restrictions; or
  • after the tenth anniversary of shareholder approval of the Plan.

Who can be granted Awards

An Award may not be granted to an individual who is not an Eligible Employee at the Award Date. Unless the Committee decides otherwise, an Award will not be granted to an Eligible Employee who on or before the Award Date has given or received notice of termination of employment (whether or not lawful).

Share Ownership Requirements

The Grantor may require, as a condition of making an Award, that, subject to the Award Holder being permitted to sell sufficient Plan Shares to meet his obligations under Rule 13, the Award Holder must retain any Plan Shares in respect of which the Award made to him Vests unless and until he has met his Share Ownership Requirement.

Post-Vesting Holding Periods

On or before the grant of an Award, the Grantor shall determine whether the relevant Award shall be subject to a Post-Vesting Holding Period. If so, and to the extent that the Grantor considers it appropriate, the Grantor shall also determine the basis upon which the Post-Vesting Holding Period will operate. Notwithstanding any other provision of this Plan, the Grantor may make the Vesting of an Award subject to the Award Holder complying with any requirements the Grantor may impose in order to give effect to the imposition, operation and/or intention of the Post-Vesting Holding Period.

If an Award is subject to a Post-Vesting Holding Period the Grantor shall, subject to Rule 17, be empowered to interpret the Rules and/or make regulations etc., to give effect to the imposition, operation and/or intention of the Post-Vesting Holding Period.

Right to refuse Awards and acceptance of Awards

An Award Holder may by notice in writing to the Company within 30 days after the Award Date say he does not want it in whole or part. In such a case, the Award shall to that extent be treated as never having been granted. No payment is required from the Award Holder or the Grantor.

Additionally, the Grantor may determine that an Award Holder be required to accept his Award by completing and returning a document in such form and within such period as the Grantor may determine. If the Award Holder does not deliver the duly completed document to the Grantor within the applicable period the Award will immediately lapse at the end of such period. The Grantor may also determine that any such document contain any applicable acceptances for the purposes of Rule 6.1.

Awards non-transferable

An Award shall be personal to the Award Holder and, except in the case of the death of an Award Holder, shall not be capable of being transferred, charged or otherwise alienated and shall lapse immediately if the Award Holder purports to transfer, charge or otherwise alienate the Award.

Plan Limits

General

The aggregate number of Plan Shares over which Awards may be made shall be limited as set out in this Rule 2. In the event of any conflict between the limits in this Rule 2, the lower limit shall prevail.

10 per cent in 10 years

An Award may not be granted if the result of granting the Award would be that the aggregate number of Plan Shares issued or committed to be issued in the preceding 10 year period under:

  • Awards under the Plan; or
  • options or awards granted under any other Employees’ Share Scheme (whether or not discretionary) operated by the Group,

would exceed 10 per cent of the Company’s issued ordinary share capital at that time.

Calculation

For the purpose of the limits contained in this Rule 2:

  • for as long as required by institutional investor guidelines, treasury shares shall be included in the limit as if they were new issue shares;
  • there shall be disregarded any Plan Shares where the right to acquire the Plan Shares has lapsed or been renounced;
  • there shall be disregarded any Plan Shares which the Trustees have purchased, or determined that they will purchase, in order to satisfy an Award or the exercise of an option or the vesting of other rights of an employee under any other Employees’ Share Scheme operated by the Group; and
  • any Plan Shares issued in relation to an Award, or on the exercise of an option or the vesting of other rights of an employee under any other Employees’ Share Scheme operated by the Group shall be taken into account once only (when the Award is granted or the option is granted or the right awarded) and shall not fall out of account when the Award Vests, the option is exercised or other rights vest.

Scaling down

If the grant of an Award would cause the limits in this Rule 2 to be exceeded, such Award shall take effect as an Award over the maximum number of Plan Shares which does not cause the limit to be exceeded. If more than one Award is granted on the same Award Date, the number of Plan Shares which would otherwise be subject to each Award shall be reduced pro rata.

Individual Limits

General

The number of Plan Shares over which Awards may be granted to any one Eligible Employee shall be limited as set out in this Rule 3.

Limit

Apart from in exceptional circumstances, an Award must not be granted to an Eligible Employee if the result of granting the Award would be that, at the proposed Award Date, the Market Value of the Plan Shares (as at the Award Date) subject to that Award, when aggregated with the Market Value (as at the relevant Award Date) of the Plan Shares subject to all awards made or options granted to him (whether under the Plan or any other discretionary Employees’ Share Scheme operated by the Group) in the same Financial Year would exceed 150% of his Annual Salary. If the Grantor determines that exceptional circumstances exist, such limit in this Rule 3.2 shall be 200% of the relevant Eligible Employee’s Annual Remuneration.

For the purpose of this Rule 3.2 the Market Value of Plan Shares subject to an award or option shall be measured on the date on which the award was made or the option was granted.

Scaling down

If the grant of an Award would cause the limit in Rule 3.2 to be exceeded, such Award shall take effect as an Award over the maximum number of Plan Shares which does not cause the limit to be exceeded.

Award Price

The Award Price shall be determined by the Grantor and may be any price.

Where the Grantor has determined that an Award will be satisfied by the issue of new shares and the Award Price is less than the nominal value of a Plan Share, the Company will ensure that at the time of the issue of the Plan Shares arrangements are in place to pay up the nominal value of the relevant Plan Shares.

Performance Target and conditions

Setting of Performance Target and conditions

The Vesting of an Award and the extent to which it Vests will be subject to the satisfaction of any Performance Targets and any other conditions set by the Grantor.

Nature of Performance Target and conditions

Any Performance Target and any other condition imposed under Rule 5.1 shall be set out in, or attached in the form of a schedule to, the Award Certificate.

Substitution, variation or waiver of Performance Target

If an event occurs which causes the Grantor to consider that any Performance Target or any other condition imposed under Rule 5.1 subject to which an Award has been granted is no longer appropriate, the Grantor (with the consent of the Committee) may substitute, vary or waive that Performance Target or other condition in such manner (and make such consequential amendments to the Rules) as:

  • is reasonable in the circumstances; and
  • except in the case of waiver, produces a fairer measure of performance and is not materially less difficult to satisfy.

The Award shall then take effect subject to the Performance Target or other condition as substituted, varied or waived.

Determination of Performance Target

The Grantor shall determine whether, and to what extent, the Performance Target(s) have been satisfied.

If the Grantor considers that the number of Plan Shares in respect of which an Award (or part thereof) would Vest based on the extent to which the Performance Target(s) have been satisfied is not a fair reflection of the performance of the Company, the Award Holder’s performance and/or wider circumstances, the Grantor may, in its absolute discretion, determine that such Award (or part thereof) shall Vest in respect of a higher or lower number of Plan Shares than would otherwise be the case.

Notification of Award Holders

The Grantor shall, as soon as practicable, notify each Award Holder concerned of any determination made by it under this Rule 5.

Reduction of Awards

Application of Rules 6.2 and 6.3

The Grantor may determine, at the time that an Award is granted, that Rule 6.2 and/or Rules 6.3 shall apply to that Award.

The Grantor may also require an Award Holder to execute a document in order to confirm his acceptance of the arrangements referred to in Rule 6.2 and/or Rule 6.3 and return the executed document to the Grantor by a specified date. Such document will be in a form set by the Grantor, and may (without prejudice to the generality of the above) require acceptance of the arrangements referred to in Rule 6.2 and/or Rule 6.3 in respect of all future awards under the Plan, or awards (or future awards) under any other Employees’ Share Scheme operated by any Group Member. It shall be a condition of Vesting of the Award that the executed document be returned by the specified date, unless the Grantor determines otherwise.

Malus

In this Rule 6.2, Malus Trigger Event means, in relation to an Award, any of the following events which the Grantor has determined, acting reasonably, at the Award Date will constitute a Malus Trigger Event for that Award:

  1. discovery of a material misstatement resulting in an adjustment in the audited consolidated accounts of the Company or the audited accounts of any Group Member; and/or
  2. an error or miscalculation has been made as to the number of Plan Shares under any Award, or received pursuant to any Award; and/or
  3. action or conduct of an Award Holder which, in the reasonable opinion of the Committee, amounts to fraud or gross misconduct; and/or
  4. serious reputational damage to the Company, any Group Member or a relevant business unit; and/or
  5. circumstances of corporate failure have arisen[1].

Notwithstanding any other provision of the Rules, the Committee may, at the time of Vesting of an Award or at any time before, reduce the number of Plan Shares subject to an Award in whole or in part (including, for the avoidance of doubt, to nil) if a Malus Trigger Event occurs. In determining any reduction which should be applied under this Rule 6.2, the Committee shall act fairly and reasonably but its decision shall be final and binding.

For the avoidance of doubt, any reduction under this Rule 6.2 may be applied on an individual basis as determined by the Committee. Whenever a reduction is made under this Rule 6.2, the relevant Award shall be treated to that extent as having lapsed.

Clawback

Clawback Trigger Events

In this Rule 6.3, Clawback Trigger Event means, in relation to an Award, any of the following events which the Grantor has determined at the Award Date will constitute a Clawback Trigger Event for that Award:

  1. discovery of a material misstatement resulting in an adjustment in the audited consolidated accounts of the Company or the audited accounts of any Group Member for a period that was wholly or partly before the end of the period over which the Performance Target applicable to an Award was assessed; and/or
  2. an error or miscalculation has been made as to the number of Plan Shares under any Award, or received pursuant to any Award; and/or
  3. action or conduct of an Award Holder which, in the reasonable opinion of the Committee, amounts to fraud or gross misconduct; and/or
  4. serious reputational damage to the Company, any Group Member or a relevant business unit; and/or
  5. circumstances of corporate failure have arisen[2].

Application

Notwithstanding any other provision of the Rules, if at any time during the period of two years following the Vesting of an Award to which the Committee has specified under Rule 6.1 that this Rule 6.3 applies a Clawback Trigger Event occurs, then:

  1. Rules 6.3.3 to 6.3.7 and 6.3.9 shall apply; and
  2. where the Award takes the form of an Option and the Award Holder has not exercised such Option, Rule 6.3.8 shall also apply.

Clawback methods

Where Rule 6.3.2 applies, the Committee may in its absolute discretion require the relevant Award Holder:

  1. to transfer to the Company (or, if required by the Company, any other person specified by the Company) all or some of the Plan Shares acquired by the Award Holder (or his nominee) pursuant to the Vesting of the Award or, in the case of an Award which is an Option, the exercise of that Option; and/or
  2. to pay to the Company (or, if required by the Company, any other person specified by the Company) an amount equivalent to all or part of the proceeds of sale or, in the event of a disposal of the Plan Shares at a price which the Committee reasonably determines was less than market value at the time of disposal and where the disposal was not made at arm’s length, an amount equivalent to the market value (as reasonably determined by the Committee) at the time of disposal of all or some of the Plan Shares acquired pursuant to the Vesting of the Award or, in the case of an Award that is an Option, the exercise of that Option; and/or
  3. to pay to the Company (or, if required by the Company, any other person specified by the Company) an amount equivalent to all or part of the amount of any cash in respect of an Award paid to or for the benefit of the Award Holder; and/or
  4. to pay to the Company (or, if required by the Company, any other person specified by the Company) an amount equivalent to all or part of any benefit or value derived from or attributable to the Plan Shares referred to in paragraph (a) above (including but not limited to any special dividend or additional or replacement shares) on such terms as the Committee may reasonably direct

less in each case the amount of tax and social security contributions actually paid (or due to be paid) by the Award Holder in respect of the acquisition of the Plan Shares and/or payment of cash in respect of an Award.

Award Holder’s obligation to recover tax

In addition to the obligation of the Award Holder as described above, the Award Holder shall use his best endeavours to seek and obtain repayment or credit from any relevant tax authority of the tax and social security contributions paid on the Award Holder’s behalf in relation to the Award as soon as reasonably practicable and to notify the Company of such claim and/or receipt of any credit or payment by any relevant tax authority in this regard. Following such notification, the Company will be entitled to require the Award Holder to make a payment to it within thirty days of an amount equivalent to the amount of any payment or credit received from any relevant tax authority.

Authorisation of deductions

The Award Holder hereby authorises the Company or such other Group Member as may be the employer of the Award Holder to make deductions, which the Award Holder hereby authorises, from any payment owing to him including but not limited to salary, bonus, holiday pay or otherwise in respect of any sum which would otherwise be payable by the Award Holder under this Rule 6.3.

Timing of payments and repayments

Any payments or repayments made by the Award Holder under Rules 6.3.3 shall be made within 30 days of the date the Award Holder is notified in writing of the amount due.

Additional methods of effecting clawback

In addition to or in substitution for the actions described above that the Committee may take under Rule 6.3.3 (the “Actions”), the Committee may:

  1. reduce the amount of any future bonus payable to the Award Holder; and/or
  2. determine that the number of Plan Shares over which an award or right to acquire Plan Shares is to be granted to the Award Holder under any Employees’ Share Scheme operated by any Group Member shall be reduced by such number as the Committee may determine; and/or
  3. reduce the number of Plan Shares (including, for the avoidance of doubt, to nil) subject to any award or right to acquire Plan Shares which has been granted to the Award Holder under any Employees’ Share Scheme operated by any Group Member (other than any tax-advantaged employee share plan that complies with the requirements of Schedules 2 to 4 of the Income Tax (Earnings and Pensions) Act 2003) before the date on which the relevant award or right vests or becomes exercisable by such number as the Committee may determine; and/or
  4. reduce the number of Plan Shares (including, for the avoidance of doubt, to nil) subject to any option to acquire Plan Shares which has been granted to the Award Holder under any Employees’ Share Scheme operated by any Group Member (other than any tax-advantaged employee share plan that complies with the requirements of Schedules 2 to 4 of the Income Tax (Earnings and Pensions) Act 2003) which has vested but not yet been exercised by such number as the Committee may determine,

provided that the total amount represented by such reductions and any amount or value payable to the Company under Rule 6.3.3 above shall not, in the Committee’s reasonable opinion, exceed the amount or value which would have been due if the Committee had only carried out the Actions.

Reduction of unexercised Option

Where Rule 6.3.2 applies and the Award takes the form of an Option which the Award Holder has not exercised in full, the Committee may in its absolute discretion reduce the number of Plan Shares subject to such Option to the extent it has not been exercised (including, for the avoidance of doubt, to nil). In addition to or in substitution for reducing such Option, the Committee may take any of the actions set out in Rule 6.3.7 provided that the total amount represented by reductions under Rule 6.3.7 and any reduction of the Option under this Rule 6.3.8 shall not, in the Committee’s reasonable opinion, exceed the amount which would have been the case if the Committee had only reduced the Option.

General provisions

In carrying out any action under this Rule 6.3, the Committee shall act fairly and reasonably but its decision shall be final and binding.

For the avoidance of doubt, any action carried out under this Rule 6.3 may be applied on an individual basis as determined by the Committee. Whenever a reduction of an award, right to acquire Plan Shares or option is made under this Rule 6.3, the relevant award, right to acquire Plan Shares or option shall be treated to that extent as having lapsed.

Interaction with other plans

The Committee may determine at any time to reduce the number of Plan Shares subject to an Award (including, for the avoidance of doubt, reducing to nil) either:

  1. to give effect to one or more provisions of any form which are equivalent to those in this Rule 6.3 (“Clawback Provisions”) contained in any Employees’ Share Scheme operated by any Group Member (other than the Plan) or any bonus plan operated by any Group Member; or
  2. as an alternative to giving effect to any such Clawback Provision.

The value of any reduction under paragraph (a) of this Rule 6.3.10 shall be determined in accordance with the terms of the relevant Clawback Provisions in the relevant Employees’ Share Scheme or plan as interpreted by the Committee in its absolute discretion.

The value of any reduction under paragraph (b) of this Rule 6.3.10 shall be determined as if the terms of the relevant Clawback Provisions in the relevant Employees’ Share Scheme or plan applied as interpreted by the Committee in its absolute discretion.

Vesting of Awards (and exercise of Options)

Earliest date for Vesting of Awards

Subject to Rules 5, 7.2, 8 and 9, an Award will Vest on the latest of:

  • the relevant date specified in the Award Certificate under Rule 1.4; and
  • the date on which the Committee determines that the Performance Target and any other condition imposed under Rule 5.1 have been satisfied.

Delay in Vesting of Awards

The Committee maydetermine that Vesting of the Award shall be delayed until any relevant investigation or other procedure relevant to an event falling within the scope of Rule 6.2 has been completed.

Effect of Award Vesting

Subject to the Rules, the effect of an Award Vesting shall be:

  • in the case of an Option, that the Award Holder is entitled to exercise the Option at any time during the Exercise Period to the extent that it has Vested or, in the case of persons resident for tax purposes in the Republic of Ireland, during the period commencing on the date on which the Option Vests and ending on the seventh anniversary of the Award Date (or such other shorter period as the Committee shall determine on or before the Award Date, such period shall not expire after the seventh anniversary of the Award Date); and
  • in the case of a Conditional Share Award, that the Award Holder shall become entitled to the Plan Shares to the extent that the Award has Vested.

No Vesting or exercise while Dealing Restrictions apply

Plan Shares may not be issued or transferred to an Award Holder (nor, in the case of an Option, may the Option be exercised) while Dealing Restrictions apply.

Effect of cessation of Relevant Employment

Subject to Rule 8, an Award shall Vest and an Option may be exercised only while the Award Holder is in Relevant Employment and if an Award Holder ceases to be in Relevant Employment, any Award granted to him which has not Vested shall lapse on cessation. This Rule 7.5 shall apply where the Award Holder ceases to be in Relevant Employment in any circumstances (including, in particular, but not by way of limitation, where the Award Holder is dismissed unfairly, wrongfully, in breach of contract or otherwise).

An Award Holder who has given or received notice of termination of Relevant Employment (whether or not lawful) may not exercise an Option during any period when the notice is effective and an Award granted to him shall not Vest during this period unless the Committee determines otherwise. If an Award would otherwise have Vested during this period, and the notice is withdrawn, the Award will Vest when the notice is withdrawn.

Options may be exercised in whole or in part

Subject to Rules 7.4 and 7.5 and 13, a Vested Option may be exercised in whole or in part at any time. If exercised in part, the unexercised part of the Option shall not lapse as a result and shall remain exercisable.

Procedure for exercise of Options

An Option shall be exercised by the Award Holder delivering to the Grantor (or any person appointed by the Grantor) a completed notice of exercise (including electronically), specifying the number of Plan Shares in respect of which the Option is being exercised, and either accompanied by the Award Price (if any) in full or confirmation of arrangements satisfactory to the Grantor for the payment of the Award Price, together with any payment and/or documentation required under Rule 13 and, if required, the Award Certificate.

For the avoidance of doubt (and subject to Rule 7.4), the date of exercise of an Option shall be the date of the receipt of the notice of exercise and compliance with the first paragraph of this Rule 7.7.

Issue or transfer of Plan Shares

Subject to Rules 7.4, 7.9 and 13 and to any necessary consent and to compliance by the Award Holder with the Rules, the Grantor shall, as soon as reasonably practicable and in any event not later than 30 days after:

  • the exercise date, in the case of an Option, arrange for the issue or transfer to the Award Holder of the number of Plan Shares specified in the notice of exercise and provide to the Award Holder, in the case of the partial exercise of an Option, an Award Certificate in respect of, or the original Award Certificate updated to show, the unexercised part of the Option; and
  • the Vesting of an Award, in the case of a Conditional Share Award, arrange for the issue or transfer to the Award Holder of the number of Plan Shares in respect of which the Award has Vested

Net or Cash Settling

Subject to Rule 13, the Grantor may, as soon as practicable and in any event no later than 30 days after the exercise of an Option or the Vesting of a Conditional Share Award:

(a) make a cash payment to the Award Holder equal to all or part of the Gain on the date of exercise of the Option or the date of Vesting of the Conditional Share Award (as applicable); and/or

(b) arrange for the transfer or issue to the Award Holder of Plan Shares with a Market Value equal

to all or part of the Gain on the date of exercise of the Option or the date of Vesting of the Conditional Share Award (rounded down to the nearest whole Plan Share). The Award Holder shall not be required to make payment for these Plan Shares.

Where the Company settles all of the Gain with a cash payment in the manner described in Rule 7.9 (a) above, this shall be in full and final satisfaction of the Award Holder’s rights under the Award. Where the Company settles part of the Gain in relation to an Award with a cash payment in the manner described in Rule 7.9(a) above (for example, to cover any tax and social security liability payable by the Award Holder), the remainder of the Gain will be settled by a transfer or issue of Plan Shares in the manner described in Rule 7.9(b) above, and together this shall be in full and final satisfaction of the Award Holder's rights under the Award.

Dividend Equivalents

An Award may include the right to receive an amount (in cash or in shares) on Vesting equal in value to the dividends which were payable on the number of Plan Shares in respect of which the Award has Vested during the period between the Award Date and the date of Vesting. This right to receive an amount (in cash or in shares) on Vesting equal in value to the payable dividends shall include any dividends where the record date is between the date of Grant and the date of Vesting of the Award, but the payment date is after the Vesting of the Award ("Unpaid Dividends"). The Grantor shall have full discretion to determine the timing and method of calculating and/or settling Dividend Equivalents in respect of such Unpaid Dividends. The payment shall not include any associated tax credit.

The Grantor may decide at any time not to apply this Rule 7.10 to all or any part of a special dividend or dividend in specie.

US Taxpayers

This Rule 7.11 shall apply to US Taxpayers. Notwithstanding anything to the contrary contained in the Plan, no Option may be exercised later than 2.5 calendar months after the end of the Taxable Year in which the Option first becomes exercisable, provided that the Option shall lapse on the date it would have lapsed had this rule not applied. The Rules of the Plan shall be interpreted accordingly.

For the purposes of this Rule 7.11, Taxable Year means the 12 month period in respect of which the Option Holder is obliged to pay US Tax or, if it would result in a longer exercise period, the 12 month period in respect of which the Option Holder’s employing company is obliged to pay tax. US Taxpayer means a person who is subject to taxation under the tax rules of the United States of America.

Vesting of Awards (and exercise of Options) in special circumstances

Death

If an Award Holder dies, any Award held by him which has not Vested will continue until the normal time of Vesting and with the Performance Target and any other condition imposed under Rule 5.1 considered at the time of Vesting, unless the Committee at its absolute discretion decides that, notwithstanding Rule 7.1, the Award will Vest on the date of death, subject to its determination as to whether and to what extent any Performance Target and any other condition imposed under Rule 5.1 shall be deemed to be satisfied as at the date of death.

Unless the Committee in its absolute discretion decides otherwise (and irrespective of the time at which the Committee has determined the Award will Vest under this Rule 8.1), the number of Plan Shares in respect of which the Award Vests will be reduced pro rata to reflect the number of whole months from the Award Date until the date of death as a proportion of the original Vesting Period.

In the case of an Option, if an Award Holder dies, his personal representatives shall be entitled to exercise the Vested proportion of his Option (whether Vested under this Rule or otherwise) at any time during the 12 month period following Vesting. If not so exercised, the Option shall lapse at the end of such period.

Injury, disability, redundancy, retirement etc

If an Award Holder ceases to be in Relevant Employment by reason of:

  • injury, ill-health or disability;
  • redundancy within the meaning of applicable Irish legislation (or overseas equivalent where applicable);
  • retirement;
  • the Award Holder being employed by a company which ceases to be a Group Member;
  • the Award Holder being employed in an undertaking or part of an undertaking which is transferred to a person who is not a Group Member; or
  • any other circumstances if the Committee decides in any particular case,

any Award held by him which has not Vested will continue until the normal time of Vesting and with the Performance Target and any other condition imposed under Rule 5.1 considered at the time of Vesting unless the Committee at its absolute discretion decides that, notwithstanding Rule 7.1, the Award will Vest on the date of cessation of employment, subject to its determination as to whether and to what extent any Performance Target and any other condition imposed under Rule 5.1 shall be deemed to be satisfied as at the date of cessation.

Unless the Committee in its absolute discretion decides otherwise (and irrespective of the time at which the Committee has determined the Award will Vest under this Rule 8.2), the number of Plan Shares in respect of which the Award Vests will be reduced pro rata to reflect the number of whole months from the Award Date until the date of cessation of employment as a proportion of the original Vesting Period.

In the case of an Option, the Award Holder shall be entitled to exercise the Vested proportion of his Option (whether Vested under this Rule or otherwise) at any time during the period ending six months after the date of Vesting or during such other longer period as the Committee determines. If not so exercised, the Option shall lapse at the end of such period.

Meaning of ceasing to be in Relevant Employment

For the purposes of the Plan, an Award Holder shall not be treated as ceasing to be in Relevant Employment until he no longer holds any office or employment with any Group Member. In addition, an Award Holder shall not be treated as so ceasing if within seven days he recommences employment or becomes an office holder with any Group Member.

The Committee may determine that an Award Holder will be treated as ceasing to be in Relevant Employment when he gives or receives notice of termination of his employment (for any reason).

Interaction of Rules

In the case of an Option:

  • if the Option has become exercisable under Rule 8.2 and, during the period allowed for the exercise of the Option under Rule 8.2 the Award Holder dies, the period allowed for the exercise of the Option shall be the period allowed by Rule 8.1; and
  • if the Option has become exercisable under Rule 8 and, during the period allowed for the exercise of the Option under Rule 8, the Option becomes exercisable under Rule 9 also (or vice versa), the period allowed for the exercise of the Option shall be the shorter of the period allowed by Rule 8 and the period allowed by Rule 9.

Takeover, scheme of arrangement or winding-up of the Company

Takeover

Subject to Rule 10, where a person obtains Control of the Company as a result of making an offer to acquire Plan Shares, Awards shall Vest on the date the person obtains Control as set out below.

The proportion of an Award which shall Vest will be calculated on the basis of the Committee’s determination of the extent to which any Performance Target and any further condition imposed under Rule 5.1 have been met and, unless the Committee decides otherwise, the number of Plan Shares in respect of which it would Vest based on such calculation will be reduced pro rata to reflect the number of whole months from the Award Date until the date of Vesting pursuant to this Rule 9.1 as a proportion of the original Vesting Period.

In the case of Options, the Vested proportion of the Options (whether Vested under this Rule 9.1 or otherwise) may be exercised at any time during the period of six months (or, if the Committee determines a longer period shall apply, that period) beginning with the time when the person making the offer has obtained Control. If not so exercised, the Options shall lapse at the end of such period unless the Committee determines otherwise, in which case the Options shall continue in force until such time as they lapse in accordance with the Rules.

Compulsory acquisition of the Company

Subject to Rule 10, if a person becomes entitled or bound to acquire shares in the Company under section 979 of the Companies Act 2006, Awards shall Vest as set out below.

The proportion of an Award which shall Vest will be calculated on the basis of the Committee’s determination of the extent to which any Performance Target and any further condition imposed under Rule 5.1 have been met and, unless the Committee decides otherwise, the number of Plan Shares in respect of which it would Vest based on such calculation will be reduced pro rata to reflect the number of whole months from the Award Date until the date of Vesting pursuant to this Rule 9.2 as a proportion of the original Vesting Period.

In the case of Options, the Vested proportion of the Options (whether Vested under this Rule 9.2 or otherwise) may be exercised at any time during the period beginning with the date the person serves a notice under section 979 and ending seven clear days before the date on which the person ceases to be entitled to serve such a notice. If not so exercised, the Options shall lapse at the end of the seven days.

Scheme of arrangement

If a person proposes to obtain Control of the Company in pursuance of a compromise or arrangement sanctioned by the court under section 899 of the Companies Act 2006, Awards shall Vest on the date of the court sanction as set out below.

The proportion of an Award which shall Vest will be calculated on the basis of the Committee’s determination of the extent to which any Performance Target and any further condition imposed under Rule 5.1 have been met and, unless the Committee decides otherwise, the number of Plan Shares in respect of which it would Vest based on such calculation will be reduced pro rata to reflect the number of whole months from the Award Date until the date of Vesting pursuant to this Rule 9.3 as a proportion of the original Vesting Period.

A Vested Option may be exercised at any time during the period of six months from the compromise or arrangement being sanctioned by the court and if not exercised within that period it shall lapse.

Winding-up of the Company

If notice is given of a resolution for the voluntary winding-up of the Company, Awards shall Vest on the date notice is given.

The proportion of an Award which shall Vest will be calculated on the basis of the Committee’s determination of the extent to which any Performance Target and any further condition imposed under Rule 5.1 have been met and, unless the Committee decides otherwise, the number of Plan Shares in respect of which it would Vest based on such calculation will be reduced pro rata to reflect the number of whole months from the Award Date until the date of Vesting pursuant to this Rule 9.4 as a proportion of the original Vesting Period.

A Vested Option may be exercised at any time during the period of six months from the date of the notice, or if shorter, the period until completion of the winding up, and if not exercised within that period it shall lapse.

Demergers and other events

The Committee may determine that Awards Vest if it becomes aware that the Company will be affected by a demerger, distribution (which is not an ordinary dividend) or other transaction not otherwise covered by the Rules.

The proportion of an Award which shall Vest will be determined by the Committee in its absolute discretion and taking into account the time the Award has been held by the Award Holder and the extent to which the Performance Target and any other condition imposed under Rule 5.1 have been met.

A Vested Option may be exercised at any time during a period as shall be determined by the Committee and if not exercised within that period it shall lapse.

Meaning of “obtains Control of the Company”

For the purpose of Rule 9 a person shall be deemed to have obtained Control of the Company if he and others Acting In Concert with him have together obtained Control of it.

Notification of Award Holders

The Committee shall, as soon as reasonably practicable, notify each Award Holder of the occurrence of any of the events referred to in this Rule 9 and explain how this affects their position under the Plan.

Vesting of Awards and corporation tax deduction

Where the Committee is aware that an event is likely to occur under Rule 9:

  • in respect of which Awards will Vest in circumstances where the conditions for relief under Part 12 of the Corporation Tax Act 2009 may not be satisfied; or
  • if the Committee in its absolute discretion considers it appropriate,

the Committee may determine that the Awards Vest, in accordance with Rule 9, immediately prior to the event taking place.

Exchange of Awards

Where Exchange applies

An Award will not Vest under Rule 9 but will be exchanged for a new award (“New Award”) under this Rule to the extent that:

  • an offer to exchange the Award for a New Award is made and accepted by the Award Holder; or
  • the Committee, if relevant, with the consent of the persons acquiring Control, decides that Awards will be automatically exchanged for New Awards.

Terms of Exchange

The following applies in respect of the New Award:

  1. The Award Date of the New Award shall be deemed to be the same as the Award Date of the Award.
  2. The New Award will be in respect of the shares in a company determined by the Committee.
  3. In the application of the Plan to the New Award, where appropriate, references to “Company” and “Plan Shares” shall be read as if they were references to the company to whose shares the New Award relates save that, in the definition of “Board” and “Committee”, the reference to “Company” shall be read as if it were a reference to Hostelworld Group plc.
  4. The New Award must be equivalent to the Award and subject to paragraph 5 below it will Vest at the same time and in the same manner as the Award.
  5. Either the Vesting of the New Award must be subject to performance conditions and other conditions which are so far as possible equivalent to the Performance Target and conditions applying to the Award or no performance conditions will apply but the value of shares comprised in the New Award shall be the value of the number of Plan Shares which would have Vested under Rule 9 as applicable.

Lapse of Awards

Notwithstanding any other provision of the Rules, an Award shall lapse on the earliest of:

  • in the case of Options, the expiry of the Exercise Period;
  • the Committee determining that any Performance Target or any other condition imposed under Rule 5.1 has not been satisfied either in whole nor in part in respect of the Award and can no longer be satisfied in whole or in part in which case the Award shall lapse either in whole or as to such part in relation to which the Performance Target or other conditions imposed under Rule 5.1 can no longer be satisfied;
  • subject to Rule 8, the Award Holder ceasing to be in Relevant Employment;
  • any date provided for under these Rules; and
  • the date on which the Award Holder becomes bankrupt or enters into a compromise with his creditors generally.

Adjustment of Awards on Reorganisation

Power to adjust Awards

In the event of a Reorganisation, the number of Plan Shares subject to an Award which is an Option or a Conditional Share Award, the description of the Plan Shares, the Award Price (if any), or any one or more of these, shall be adjusted in such manner as the Grantor, together with the Committee where relevant, shall determine.

Award Price

No adjustment shall be made to the Award Price which would result in the Plan Shares subject to an Option being issued at a price per Plan Share lower than the nominal value of a Plan Share except where the Grantor puts in place arrangements to pay up the nominal value at the date of issue of the Plan Shares (or the difference between the adjusted Award Price and the nominal value as the case may be).

Notification of Award Holders

The Grantor shall, as soon as reasonably practicable, notify each Award Holder of any adjustment made under this Rule 12 and explain how this affects their position under the Plan.

Accounting for PAYE and Social Security contributions

Deductions

Unless the Award Holder discharges any liability that may arise himself, the Grantor, the Company or any Group Member (as the case may be) may withhold such amount, or make such other arrangements as it may determine appropriate, for example to sell or withhold Plan Shares, to meet any liability to taxes or social security contributions in respect of Awards.

Transfer of Employer’s Social Security Contributions

The Grantor may, at its discretion and to the extent permitted by law, require the Award Holder to pay all or any part of the Employer’s social security contributions (or similar liabilities) in relation to an Award under the Plan.

Execution of document by Award Holder

The Grantor may require an Award Holder to execute a document or otherwise accept the terms and conditions of an Award (including electronically) in order to bind himself contractually to any such arrangement as is referred to in Rules 13.1 and 13.2 and return the executed document or acceptance to the Committee (or the Company on its behalf) by a specified date. It shall be a condition of Vesting and exercise of the Award that the executed document be returned by the specified date unless the Grantor determines otherwise.

Tax elections

The Committee may, at its discretion, determine that an Option may not be exercised and/or the Plan Shares subject to a Conditional Share Award may not be issued or transferred to the Award Holder (or for his benefit) unless the Award Holder has beforehand signed an election under Chapter 2 of Part 7 of ITEPA 2003 and/or section 165 of the Taxation of Chargeable Gains Act 1992 or entered into broadly similar arrangements in countries outside the UK.

Issue and listing of Plan Shares

Rights attaching to Plan Shares

All Plan Shares issued and/or transferred under the Plan shall, as to voting, dividend, transfer and other rights, including those arising on a liquidation of the Company, rank equally in all respects and as one class with the shares of the same class in issue at the date of issue or transfer save as regards any rights attaching to such Plan Shares by reference to a record date prior to the date of such issue or transfer.

Listing of Plan Shares

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

Relationship of Plan to contract of employment

Contractual provisions

Notwithstanding any other provision of the Plan:

  • the Plan shall not form part of any contract of employment between any Group Member and an Eligible Employee;
  • unless expressly so provided in his contract of employment, an Eligible Employee has no right to be granted an Award and the receipt of an Award in one year (and the calculation of the Award Price in a particular way) is no indication that the Award Holder will be granted any subsequent Awards (or that the calculations of the Award Price will be made in the same way);
  • the Plan does not entitle any Award Holder to the exercise of any discretion in their favour;
  • the benefit to an Eligible Employee of participation in the Plan (including, in particular but not by way of limitation, any Awards held by him) shall not form any part of his remuneration or count as his remuneration for any purpose and shall not be pensionable; and
  • if an Eligible Employee ceases to be in Relevant Employment for any reason, he shall not be entitled to compensation for the loss or diminution in value of any right or benefit or prospective right or benefit under the Plan (including, in particular but not by way of limitation, any Awards held by him which lapse by reason of his ceasing to be in Relevant Employment) whether by way of damages for unfair dismissal, wrongful dismissal, breach of contract or otherwise.

Deemed agreement

Unless the Award is refused in accordance with Rule 1.10, and without prejudice to Rule 13.3, an Award Holder is deemed to have agreed to the provisions of these Rules, including this Rule 15.

Administration of Plan

Responsibility for administration

The Committee (and the Grantor where appropriate), shall be responsible for, and shall have the conduct of, the administration of the Plan. The Committee may from time to time make, amend or rescind regulations for the administration of the Plan provided that such regulations shall not be inconsistent with the Rules.

Committee’s decision final and binding

The decision of the Committee shall be final and binding in all matters relating to the Plan, including but not limited to the resolution of any dispute concerning, or any inconsistency or ambiguity in the Rules or any document used in connection with the Plan.

Grantor to consult with the Committee

Where the Grantor is not the Company and has made, or proposes to make, an Award, the Grantor shall consult with, and take into account the wishes of, the Committee before making any determination or exercising any power or discretion under the Plan.

Discretionary nature of Awards

All Awards shall be granted entirely at the discretion of the Grantor.

Provision of information

Where the Grantor is not the Company, the Grantor and an Award Holder shall provide to the Company as soon as reasonably practicable such information as the Company reasonably requests for the purpose of complying with its obligations under section 421J of ITEPA 2003 or similar requirements of overseas tax legislation.

Cost of the Plan

The cost of introducing and administering the Plan shall be met by the Company. The Company shall be entitled, if it wishes, to charge an appropriate part of such cost to a Subsidiary or the Grantor.

Data protection

For the purpose of operating the Plan, the Company will collect and process information relating to Eligible Employees and Award Holders in accordance with the privacy notice which is on the Company's intranet.

Third party rights

Nothing in these Rules confers any benefit, right or expectation on a person who is not an Award Holder. No such third party has any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any terms of these Rules.

Amendment of the Plan

Power to amend the Plan

Subject to Rules 17.2 and 17.3, the Committee may from time to time amend the Rules (including, for the purposes of establishing a sub-plan for the benefit of employees located overseas).

Amendments to the Plan

Without the prior approval of the Company in general meeting, an amendment may not be made for the benefit of existing or future Award Holders to the Rules relating to:

  • the basis for determining an Eligible Employee’s entitlement (or otherwise) to be granted an Award and/or to acquire Plan Shares on the exercise of an Option and/or to become absolutely entitled to Plan Shares subject to a Conditional Share Award (as the case may be) under the Plan;
  • the persons to whom an Award may be granted;
  • the limit on the aggregate number of Plan Shares over which Awards may be granted;
  • the limit on the number of Plan Shares over which Awards may be granted to any one Eligible Employee;
  • the price at which Plan Shares may be acquired under an Award;
  • the adjustment of Awards on a Reorganisation;
  • this Rule 17.2,

except for:

  • an amendment which is of a minor nature and benefits the administration of the Plan; or
  • an amendment which is of a minor nature and is necessary or desirable in order to take account of a change of legislation or to obtain or maintain favourable tax, exchange control or regulatory treatment for participants in the Plan, the Company or some other Group Member.

Rights of existing Award Holders

An amendment may not materially adversely affect the rights of an existing Award Holder except:

        1. where the amendment is made to take account of any matter or circumstance which the Committee reasonably considers is a relevant legal or regulatory requirement or to take account of any other matter or circumstance (including in particular corporate governance requirements or best practice) which the Committee reasonably considers is relevant and requires an amendment to be made in order for any Group Member to comply with such matter or circumstance; or
    • where the Award Holders affected by the change have been notified of such amendment and the majority of Award Holders have approved the amendment.

Notices

Notice by the Grantor

Save as provided for by law, any notice, document or other communication given by, or on behalf of, the Grantor or to any person in connection with the Plan shall be deemed to have been duly given if delivered to him at his place of work, if he is in Relevant Employment if sent by e-mail to such e-mail address as may be specified by him from time to time or, in the case of an Award Holder who remains in Relevant Employment, to such e-mail address as is allocated to him by any Group Member, or sent through the post in a pre-paid envelope to the postal address last known to the Company to be his address and, if so sent, shall be deemed to have been duly given on the date of posting.

Deceased Award Holders

Save as provided for by law, any notice, document or other communication so sent to an Award Holder shall be deemed to have been duly given notwithstanding that such Award Holder is then deceased (and whether or not the Company has notice of his death) except where his personal representatives have established their title to the satisfaction of the Company and supplied to the Company an e-mail or postal address to which notices, documents and other communications are to be sent.

Notice to the Grantor

Save as provided for by law any notice, document or other communication given to the Grantor (or any person appointed by the Grantor) in connection with the Plan shall be delivered by hand or sent by email, fax or post to the Company Secretary (or any person appointed by the Grantor) at the Company’s registered office (or such other e-mail or postal address as may from time to time be notified to Award Holders) but shall not in any event be duly given unless it is actually received at the registered office or such e-mail or postal address.

Governing law and jurisdiction

Plan governed by English law

The formation, existence, construction, performance, validity and all aspects whatsoever of the Plan, any term of the Plan and any Award granted under it shall be governed by English law.

English courts to have jurisdiction

The English courts shall have jurisdiction to settle any dispute which may arise out of, or in connection with, the Plan.

Jurisdiction agreement for benefit of the Company

The jurisdiction agreement contained in this Rule 19 is made for the benefit of the Company only, which accordingly retains the right to bring proceedings in any other court of competent jurisdiction.

Award Holder deemed to submit to such jurisdiction

By accepting the making of an Award, an Award Holder is deemed to have agreed to submit to such jurisdiction.

Interpretation

Definitions

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

Acting In Concert has the meaning given to that expression in The City Code on Takeovers and Mergers in its present form or as amended from time to time;

Annual Salary means the basic salary paid by the Group expressed as an annual rate as at the Award Date;

Award means an Option or a Conditional Share Award granted under the Plan;

Award Certificate means a statement in a form determined by the Company (including electronically) setting out details of the Award as set out in Rule 1.4;

Award Date means the date on which an Award is granted in accordance with Rule 1.3;

Award Holder means an individual who holds an Award or, where the context permits, his legal personal representatives;

Award Price means the amount (if any), such amount being expressed either as an amount per Plan Share or an amount payable in respect of the exercise of an Option or the Vesting of a Conditional Share Award, determined in accordance with Rule 4;

Board means the board of directors of the Company or a duly authorised committee of it or a person duly authorised by the board of directors of the Company or such committee;

Committee means the Remuneration Committee of the board of directors of the Company as appointed from time to time;

Company means Hostelworld Group plc incorporated in England and Wales under company number 09818705;

Conditional Share Award means a conditional right under the Plan to acquire Plan Shares;

Control has the meaning given to it by section 995 of ITA 2007;

Daily Official List means the Financial Conduct Authority's list of securities that have been admitted to listing and which is maintained by the Financial Conduct Authority;

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

Dealing Restrictions means restrictions on dealings imposed by statute, order or regulation, Government directive, or stock exchange and/or any internal share dealing code adopted by the Company;

Eligible Employee means an individual who at the Award Date is an employee of a Group Member;

Employees’ Share Scheme has the meaning set out in section 1166 of the Companies Act 2006;

Exercise Period means the period set by the Committee on the Award Date during which an Option may be exercised ending no later than the tenth anniversary of the Award Date or, in the case of persons resident for tax purposes in the Republic of Ireland, on the seventh anniversary of the Grant Date (or such other shorter period as the Committee shall determine on or before the Grant Date provided that in respect of persons resident for tax purposes in the Republic of Ireland on the Grant Date, such period shall not expire after the seventh anniversary of the Grant Date);

Financial Conduct Authority means the “competent authority” as that expression is defined in Part VI of the Financial Services and Markets Act 2000;

Financial Year means the financial year of the Company;

Flotation meansthe admission by the Financial Conduct Authority (or any other competent authority for the purposes of Part VI of the Financial Services and Markets Act 2000) of any of the issued equity share capital of the Company to the Official List and such admission becoming effective;

Flotation Date means the date on which Flotation occurs;

Flotation Offer Price means the amount the Company’s shares were offered for purchase on the Flotation Date.

Gain means the difference between (i) the Market Value of a Plan Share on the date of exercise of an Option or the date of Vesting of a Conditional Share Award (as applicable) and (ii) the Award Price, multiplied by the number of Plan Shares in respect of which the Option is being exercised or the Conditional Share Award is Vesting;

Grantor means:

  • in relation to an Award granted by the Company, the Committee;
  • in relation to an Award granted by the Trustees, the Trustees; and
  • in relation to an Award granted by any other person which the Committee authorises to grant an Award, that person;

Group means the Company and its Subsidiaries from time to time and Group Member shall be interpreted accordingly;

Holding Period means the period (if any) specified under Rule 1.4 (commencing from the Vesting Date of the relevant Award) during which the restrictions contained in Rule 1.9 apply;

ITA 2007 means the Income Tax Act 2007;

ITEPA 2003 means the Income Tax (Earnings and Pensions) Act 2003;

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

Market Value on any day means:

(a) if at the relevant time Plan Shares are listed in the Daily Official List of the London Stock Exchange (or any other recognised stock exchange within the meaning of section 1005 of ITA 2007 or the Alternative Investment Market of the London Stock Exchange), the middle market quotation (as derived from that listing) on the preceding Dealing Day or, if the Grantor determines, the value equal to the average middle market quotation for such number of Dealing Days preceding that day as the Grantor may determine, in which case and in relation to the grant of an Award such period of Dealing Days shall begin no earlier than the Dealing Day preceding a day on which an Award may be granted under Rule 1.5; or

(b) where Plan Shares are not so listed, the market value of a Plan Share calculated as described in the Taxation of Chargeable Gains Act 1992.

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

Performance Target means a performance target imposed as a condition of the Vesting of an Award under Rule 5.1 and as substituted or varied in accordance with Rule 5.3;

Plan means the Hostelworld Group plc Long Term Incentive Plan as amended from time to time;

Plan Shares means ordinary shares in the capital of the Company (or any shares representing them);

Post-Vesting Holding Period means a requirement imposed on the Award Holder to retain some or all (as determined by the Grantor) of the net (i.e. after tax) number of Plan Shares received on the Vesting of a Conditional Share Award or the exercise of an Option until the fifth anniversary of the Award Date or such longer or shorter period determined by the Grantor on the Award Date;

Recipient means a person who, by virtue of being an Award Holder, had Plan Shares transferred to him (or to the Holder or to another party to be held on his behalf) on or before Vesting of his Award (or, where the Award is in the form of an Option, exercise of that Option);

Regulatory Information Service means a service that is approved by the Financial Conduct Authority on meeting the Primary Information Provider criteria and is on the list of Regulatory Information Services maintained by the Financial Conduct Authority (or any overseas equivalent);

Relevant Employment means employment with any Group Member;

Reorganisation means any variation in the share capital of the Company, including but without limitation a capitalisation issue, rights issue, demerger or other distribution, a special dividend or distribution, rights offer or bonus issue and a sub-division, consolidation or reduction in the capital of the Company;

Rules mean the rules of the Plan;

Share Ownership Requirement means any requirement, as may be notified to an Award Holder by the Committee from time to time, for him to maintain a holding of a number of Plan Shares;

Subsidiary has the meaning set out in section 1159 of the Companies Act 2006;

Trustees means the trustees of any trust created by a Group Member which, when taken together with the Plan, constitutes an Employees’ Share Scheme;

Vest means:

  • in relation to an Option, an Award Holder becoming entitled to exercise the Option; and
  • in relation to a Conditional Share Award, means an Award Holder becoming entitled to have the Plan Shares transferred to them; and

Vesting Period means the period from the Award Date to the normal date of Vesting (or, where the context requires, such earlier date of Vesting as provided for under the Plan Rules).

Interpretation

In the Plan, unless otherwise specified:

  • save as provided for by law a reference to writing includes any mode of reproducing words in a legible form and reduced to paper or electronic format or communication including, for the avoidance of doubt, correspondence via e-mail; and
  • the Interpretation Act 1978 applies to the Plan in the same way as it applies to an enactment.

International Sub-Plan

  1. In accordance with Rule 17.1 of the Hostelworld Group plc Long Term Incentive Plan (the "Plan") the Committee has adopted this international sub-plan (the "Sub-Plan") for the purposes of granting phantom Awards to selected Employees overseas. Unless otherwise stated below, defined terms and expressions used in the Sub-Plan shall have the same meaning given to them in the Plan.

  2. Only Awards over Notional Shares may be granted pursuant to the Sub-Plan and not any other form of Award.

  3. For the purposes of granting Awards under this Sub-Plan, the rules of this Sub-Plan shall comprise the Rules of the Plan as modified below:

3.1 All references to "Plan Shares" within the Rules shall be replaced, where the context requires, with references to "Notional Shares";

3.2 "Notional Shares" shall mean the notional or phantom units used to calculate the value of an Award Holder's Award, which track the price of ordinary shares in Hostelworld Group plc;

3.3 All references to "Options", where the context requires, shall be interpreted to mean an "option over Notional Shares";

3.4 All references to "Conditional Share Awards", where the context requires, shall be interpreted to mean an "award over Notional Shares"

3.5 the definition of "Gain" shall be replaced in its entirety with the following:

"means the difference between (i) the Market Value of an ordinary share in the capital of Hostelworld Group plc on the date of exercise of an Option or Vesting of a Conditional Share Award and (ii) the Award Price, multiplied by the number of Plan Shares in respect of which the Option is being exercised or in respect of which the Conditional Share Award has vested;"

3.6 Rule 7.8 (Issue of Plan Shares) shall be replaced in its entirety with the following:

"Subject to Rules 7.4, 7.9 and 13 and to any necessary consent and to compliance by the Award Holder with the Rules, the Grantor shall, as soon as reasonably practicable and in any event not later than 30 days after:

• the exercise date, in the case of an Option, make a cash payment to the Award Holder equal to the Gain on the date of exercise of the Option and provide to the Award Holder, in the case of the partial exercise of an Option, an Award Certificate in respect of, or the original Award Certificate updated to show, the unexercised part of the Option; and

• the Vesting of an Award, in the case of a Conditional Share Award, make a cash payment to the Award Holder equal to the Gain on the Vesting date of the Award."

3.7 If Rule 7.10 (Dividend Equivalents) applies, an Award may include the right to receive an amount (in cash or in Notional Shares) and otherwise subject to the remainder of Rule 7.10

3.8 If Rule 10 (Exchange of Awards) applies, any New Award granted thereunder will be in respect of such notional shares or phantom units as the Committee may determine and otherwise subject to the remainder of Rule 10; and

3.9 Rule 14 (Issue and Listing of Plan Shares), shall not apply in connection with Awards granted under this Sub-Plan.

Employees of Record Sub-Plan

to the Hostelworld Group plc Long Term Incentive Plan

  1. In accordance with Rule 17.1 of the Hostelworld Group plc Long Term Incentive Plan (the "Plan") the Committee has adopted this sub-plan (the "Sub-Plan") for the purposes of granting phantom Awards to selected employees of record, who provide services to the Group but who are not directly employed by a Group Company. Unless otherwise stated below, defined terms and expressions used in the Sub-Plan shall have the same meaning given to them in the Plan.

  2. Only Awards over Notional Shares may be granted pursuant to the Sub-Plan and not any other form of Award.

  3. For the purposes of granting Awards under this Sub-Plan, the rules of this Sub-Plan shall comprise the Rules of the Plan as modified below:

3.1 the definition of "Annual Remuneration" shall be replaced in its entirety with the following:

"means the basic salary or fee paid to the Eligible Employee for the provision of services to any Group Member by the Employer of Record expressed as an annual rate as at the Award Date";

3.2 the definition of "Eligible Employee" shall be replaced in its entirety with the following:

"means an individual who at the Award Date provides services to any Group Member, but who is not directly employed or engaged by any Group Member and is instead an employee or a contractor of an Employer of Record"

3.3 a new definition of "Employer of Record" shall be included as follows:

"means a third-party organisation contracted to take responsibility for engaging and paying employees and/or workers to provide services to any Group Member".

3.4 the definition of "Relevant Employment" shall be replaced in its entirety with the following:

"means the provision of services to any Group Member through employment and/or engagement with an Employer of Record".

3.5 All references to "Plan Shares" within the Rules shall be replaced, where the context requires, with references to "Notional Shares";

3.6 "Notional Shares" shall mean the notional or phantom units used to calculate the value of an Award Holder's Award, which track the price of ordinary shares in Hostelworld Group plc;

3.7 All references to "Options", where the context requires, shall be interpreted to mean an "option over Notional Shares";

3.8 All references to "Conditional Share Awards", where the context requires, shall be interpreted to mean an "award over Notional Shares"

3.9 the definition of "Gain" shall be replaced in its entirety with the following:

"means the difference between (i) the Market Value of an ordinary share in the capital of Hostelworld Group plc on the date of exercise of an Option or Vesting of a Conditional Share Award and (ii) the Award Price, multiplied by the number of Plan Shares in respect of which the Option is being exercised or in respect of which the Conditional Share Award has vested;"

3.10 Rule 7.8 (Issue of Plan Shares) shall be replaced in its entirety with the following:

"Subject to Rules 7.4, 7.9 and 13 and to any necessary consent and to compliance by the Award Holder with the Rules, the Grantor shall, as soon as reasonably practicable and in any event not later than 30 days after:

• the exercise date, in the case of an Option, make a cash payment to the Award Holder equal to the Gain on the date of exercise of the Option and provide to the Award Holder, in the case of the partial exercise of an Option, an Award Certificate in respect of, or the original Award Certificate updated to show, the unexercised part of the Option; and

• the Vesting of an Award, in the case of a Conditional Share Award, make a cash payment to the Award Holder equal to the Gain on the Vesting date of the Award."

3.11 If Rule 7.10 (Dividend Equivalents) applies, an Award may include the right to receive an amount (in cash or in Notional Shares) and otherwise subject to the remainder of Rule 7.10

3.12 Rule 8.2 (Injury, disability, redundancy, retirement etc) shall apply with the following amendments (underlined):

• the Award Holder providing services to a company which ceases to be a Group Member;

• the Award Holder providing services to an undertaking or part of an undertaking which is transferred to a person who is not a Group Member; or

3.13 Rule 8.3 (Meaning of ceasing to be in Relevant Employment) shall apply with the following amendments (underlined):

For the purposes of the Plan, an Award Holder shall not be treated as ceasing to be in Relevant Employment until he is no longer employed or engaged by the Employer of Record to provide services to any Group Member and/or he no longer holds any office or employment with any Group Member. In addition, an Award Holder shall not be treated as so ceasing if within seven days he recommences employment or becomes an office holder with any Group Member.

The Committee may determine that an Award Holder will be treated as ceasing to be in Relevant Employment when he gives or receives notice of termination of his employment, engagement and/or of the provision of his services to any Group Member.

3.14 If Rule 10 (Exchange of Awards) applies, any New Award granted thereunder will be in respect of such notional shares or phantom units as the Committee may determine and otherwise subject to the remainder of Rule 10; and

3.15 Rule 14 (Issue and Listing of Plan Shares), shall not apply in connection with Awards granted under this Sub-Plan.

3.16 Rule 13.1 (Accounting for PAYE and National Insurance contributions) (Deductions) shall apply with the following amendments (underlined):

Unless the Award Holder discharges any liability that may arise himself, the Grantor, the Company, any Group Member and/or the Employer of Record (as the case may be) may withhold such amount, or make such other arrangements as it may determine appropriate, for example to sell or withhold Plan Shares, to meet any liability to taxes or social security contributions in respect of Awards.

3.17 Rule 15 (Relationship of Plan to contract of employment) shall apply with the following amendments (underlined):

Notwithstanding any other provision of the Plan:

    1. the Plan shall not form part of any contract of employment or otherwise between any Group Member, the Employer of Record (as the case may be) and an Eligible Employee;
  • an Eligible Employee has no right to be granted an Award and the receipt of an Award in one year (and the calculation of the Award Price in a particular way) is no indication that the Award Holder will be granted any subsequent Awards (or that the calculations of the Award Price will be made in the same way);
  • the Plan does not entitle any Award Holder to the exercise of any discretion in their favour;
  • the benefit to an Eligible Employee of participation in the Plan (including, in particular but not by way of limitation, any Awards held by him) shall not form any part of his remuneration or count as his remuneration for any purpose and shall not be pensionable; and
  • if an Eligible Employee ceases to be in Relevant Employment for any reason, he shall not be entitled to compensation for the loss or diminution in value of any right or benefit or prospective right or benefit under the Plan (including, in particular but not by way of limitation, any Awards held by him which lapse by reason of his ceasing to be in Relevant Employment) whether by way of damages for unfair dismissal, wrongful dismissal, breach of contract or otherwise.
  • Participation in the Plan shall not entitle any Eligible Employee to employment with any Group Member, or otherwise deem them to be an employee of any Group Member.

  • The Grantor may only operate Rules 6.2.2, 6.2.4 and 6.2.5 in respect of Awards granted on or after 29th March 2019.

  • The Grantor may only operate Rules 6.3.1.2, 6.3.1.4 and 6.3.1.5 in respect of Awards granted on or after 29th March 2019.

Talk to a Data Expert

Have a question? We'll get back to you promptly.