Dr Michael John Watts

March 2022

As announced on 24 March 2022, Dr Watts stepped down as a director of Pharos Energy plc (the Company) with effect from 23 March 2022. Dr Watts is expected to remain as an employee of the Company until 21 March 2023. The following information is provided in accordance with section 430(2B) of the Companies Act 2006:

1. Dr Watts will continue to receive his salary and other benefits under his service contract with the Company in respect the remaining term of his employment, but has not and will not receive any loss of office payments. Dr Watts has not received any payment in lieu of the notice period under his service contract.
2. The outstanding awards under the Company’s Long Term Incentive Plan (LTIP) held by Dr Watts will be treated in accordance with the rules of the LTIP and will remain subject to the terms contained therein. Assuming Dr Watts has the status of ‘good leaver’ on the termination of his employment, his entitlement to any outstanding unvested LTIP awards will be pro-rated to reflect his actual period of service relative to the normal vesting period. Dr Watts will not receive any new LTIP awards in 2022 or 2023.
3. The Remuneration Committee has determined that Dr Watts is entitled to an annual bonus for the financial year ended 31 December 2021. He is also eligible to receive an annual bonus for the financial year ending 31 December 2022. The amount of any such bonus, if any, is a matter for the Company’s discretion, but the Company has agreed that it will exercise this discretion fairly and reasonably, having regard to the role Dr Watts is being asked to fill until the termination of his employment, and in a manner consistent with the assessment of bonuses for comparable colleagues.
4. Dr Watts received a contribution from the Company towards his legal costs of £2,500 exclusive of VAT in connection with advice in connection with the termination of his employment and terms of the corresponding settlement agreement between Dr Watts and the Company.

The directors’ remuneration report of the Company for the financial year ending 31 December 2022 will include details of remuneration earned by Dr Watts as an executive director during that financial year.