Service contracts and termination policy.

Executive Directors

Executive Director

Contract commencement date

Continuous service date

1.

Tim Breedon stepped down from the Board on 30 June 2012. He retired from the Company on 31 December 2012.

Tim Breedon1

January 2002

September 1987

Nigel Wilson

September 2009

September 2009

John Pollock

November 2003

September 1980

Mark Gregory

January 2009

August 1998

Mark Zinkula

September 2012

June 2008

Termination

The Company’s policy is to limit severance payments on termination to pre-established contractual arrangements. In the event that the employment of an executive director is terminated, any compensation payable will be determined in accordance with the terms of the service contract between the Company and the employee, as well as the rules of any incentive plans. The notice periods and termination arrangements for the executive directors are given below.

John Pollock has a notice period of six months on either side and would be entitled to an additional six months’ base salary, pension and car allowance entitlement if his employment was terminated by the Company (except where termination is for gross misconduct).

Mark Gregory and Nigel Wilson have notice periods of 12 months. However, they have no entitlement to any additional contractual payment on termination of employment. Any payment in lieu of notice will consist solely of base salary and the cost of providing benefits for the outstanding notice period and will be subject to deductions for income tax and National Insurance as appropriate.

Mark Zinkula has a notice period of six months on either side. Any payment in lieu of notice will consist solely of base salary.

Tim Breedon had a notice period of six months on either side and would have been entitled to an additional six months’ base salary, pension and car allowance entitlement if his employment had been terminated by the Company (except where termination is for gross misconduct). However, Tim retired from the Company on 31 December 2012. In line with policy above, no payments were made to him other than contractual entitlements or those under the share scheme or incentive plan rules.

Copies of the executive directors’ service contracts are available for inspection at the Company’s registered office.