Report of The Board in relation to remuneration policy and practice

10.3.6 Free Share Plan

Table 9
  Award effective from At 31.12.06/ 01.01.07 Awarded (A), Released (R) or Forfeit (F) in year Dividend reinvestment shares acquired in year At 31.12.07 Releasable
             
Peter Cummings Aug 05 347   15 362 Aug 08
  Aug 06 311   14 325 Aug 09
  Aug 07   317 (A) 5 322 Aug 10
    658     1,009  
             
Jo Dawson Aug 05 347   15 362 Aug 08
  Aug 06 311   14 325 Aug 09
  Aug 07   317 (A) 5 322 Aug 10
    658     1,009  
             
Phil Hodkinson Aug 05 347   15 362 Aug 08
  Aug 06 311   14 325 Aug 09
  Aug 07   317 (A) 5 322 Aug 10
    658     1,009  
             
Andy Hornby Aug 05 347   15 362 Aug 08
  Aug 06 311   14 325 Aug 09
  Aug 07   317 (A) 5 322 Aug 10
    658     1,009  
             
Colin Matthew Aug 05 347   15 362 Aug 08
  Aug 06 311   14 325 Aug 09
  Aug 07   317 (A) 5 322 Aug 10
    658     1,009  
             
Dan Watkins Aug 05 347   15 362 Aug 08
  Aug 06 311   14 325 Aug 09
  Aug 07   317 (A) 5 322 Aug 10
    658     1,009  

The free share plan is available to most Group colleagues.

The plan awards colleagues free shares, usually on an annual basis. At the end of three years, shares are transferable to colleagues, subject to the participant still being in the Group’s employment at that time or earlier if they are a qualifying leaver. Shares must be held in trust for five years to qualify for full tax and National Insurance benefits. There are no performance conditions.

All Executive Directors with the exception of Mike Ellis and Philip Gore-Randall, who were appointed after the qualifying date, have taken up membership of the plan and the projected number of shares which they would be entitled to at the end of the relevant period is set out above.

Notes to Table 9

Note 1:

Shares were awarded at £9.10, £9.74 and £9.45 in August 2005, August 2006, and August 2007 respectively, the middle market prices of the Group’s ordinary shares on the days immediately preceding the dates of the awards.

Note 2:

Participants in this plan have an interest in dividends on the free shares (in the form of dividend shares) as and when they become due. Dividends were paid on 14 May 2007 and 8 October 2007 and were reinvested in shares. The closing market prices of the Group’s ordinary shares on these dates were £10.77 and £9.56 respectively. Dividend reinvestment shares are required to be held for three years from the dates of payment.

Note 3:

On 8 February 2008, 648 shares were released from the trust on behalf of Benny Higgins who left on 31 December 2007. The closing market price of the Group’s ordinary shares on that date was £6.58. He has no remaining shares under the plan.

Note 4:

Details of the market price of the Group’s ordinary shares during 2007 are given in Section 10.3.8.

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