**Exhibit 4.16**

 

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| **STRICTLY PERSONAL****BY COURIER      TO BE OPENED BY ADDRESSEE ONLY******Mr Peter Ellwood      Catesby House      Lower Catesby      Daventry      Northants NN116LF | **ICI**      20 Manchester Square    London W1U 3AN    T. +44    (0)20 7009 5000    F. +44    (0)20 7009 5001    www.ici.com |

30 June 2003    

Dear Peter 

**APPOINTMENT TO THE BOARD OF IMPERIAL CHEMICAL INDUSTRIES PLC**

I write to confirm the terms of your appointment as Non-Executive Director and, initially, as Deputy Chairman of Imperial Chemical Industries PLC (the ***Company***),****such appointment to take effect from 27 June 2003. 

**Definitions**

| 1.   | In this Letter of Appointment the following expressions shall have the following meanings: |
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***Appointment***means your appointment as set out in this letter; 

***Board***means the board of directors of the Company from time to time or a duly constituted committee thereof; 

***Effective Date***means 27 June 2003; 

***Group Company***means the Company, any holding company of the Company and any subsidiary of the Company or of any such holding company (with holding company and subsidiary having themeanings given to them by section 736 Companies Act 1985.) 

**Appointment**

| 2.   | The Appointment will commence       on the Effective Date and is subject to re-election to the Board at the       first       Annual General Meeting after joining the Board. Initially you will be       appointed as Deputy Chairman  of the Company, although it is intended       that, on a date to be agreed and following an appropriate transition period,       you will become the Company’s Chairman. |
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| 3.   | Your engagement as a Non-Executive Director will be for an initial period of three years. Current practice in ICI is that Non-Executive Directors are normally expected to serve two three-yearterms.	However, you                                                                                                                                                                                                    |

 

|   | Imperial Chemical Industries PLC      Registered in England No 218019      Registered Office      20 Manchester Square      London W1U 3AN |
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acknowledge that you have no entitlement to compensation (except in relation to fees due at the date of termination) if the Appointment terminates prior to the end of the three-year term for any reason. 

**Duties**

| 4.     |   The         Board as a whole is collectively responsible for promoting the success         of the Company by directing and supervising the Company’s affairs.         In addition, as the Deputy Chairman and a Non-Executive Director, your    responsibilities will include: |
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|   | a)                                                                                                                                                                                                                                                                                              | to constructively challenge and contribute      to the developmentof strategy; |
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|   | b)                                                                                                                                                                                                                                                                                              | to scrutinise the performance of management      in meetingagreed goals and objectives and monitor the reporting of performance; |
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|   | c)                                                                                                                                                                                                                                                                                              | to satisfy yourself that that financial      information is accurate and that financial controls and systems of risk      management are robustand defensible; and |
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|   | d)                                                                                                                                                                                                                                                                                              | to determine appropriate levels of      remuneration of executive directors and to have a prime role in appointing,      and where necessary removing,senior management and in succession planning. |

As and when you become Chairman of the Company, I will write to you again to confirm your duties as Chairman. 

| 5.   | During your Appointment,        you will be required to attend the Annual General Meeting of the Company,        regular and emergency Board Meetings, any Extraordinary General Meeting        of the Company and to serve on and/or chair any committees of the Board        to which you are appointed. The Board Agenda is usually issued on the        Friday before each Board Meeting together with most of the supporting        papers. We shall courier these to you at the above address, unless you        advise otherwise. The Non-Executive Directors generally meet as a group        twice a year without the Chairman being present for part of the time. |
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| 6.   | Non-Executive Directors        automatically serve on the Remuneration and Nomination Committee. In        addition you have been invited to serve on the Audit Committee. Meetings        of these Committees are held on Board Meeting days: in the case of the        Remuneration and Nomination Committee, as and when required; in the case        of the Audit Committee, immediately before the Board Meeting on a quarterly        basis. It is normal practice for Non-Executive Directors to leave their        Board and other papers on the Board table after Meetings.                                                                                        |

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| 7.   | By accepting the Appointment you have confirmed that you are able to allocate sufficient time to meet the expectations of your role. It is expected that on average this would require 2 – 3 days perweek. This time commitment will be subject to review when you become Chairman of the Company. |
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| 8.   | The performance of the Directors is evaluated annually.                                                                                                                                                                                                                                                 |
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| **Fees**       |

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| 9.   | You will be entitled to a fee for your services as Deputy Chairman and Non-Executive Director of £100,000 per annum (less any necessary statutory deductions). Once you are appointed as Chairman, itis intended that your fee will be reviewed. |
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|           | These fees will be paid in arrears      to a bank account nominated by you in equal monthly instalments. Your fees    will be reviewed annually by the Board.                                                                                          |

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| 10.    | In respect of the period between the Effective        Date and 31 December 2003, you may elect to receive up to 30% of your        fees in the form of shares in the Company. Thereafter, a similar arrangement        will operate under which up to 50% (or such other amount as is agreed        by the Company) of your annual fees may be taken in the form of shares        in the Company. I shall be writing to you in due course to give you further    details. |

**Expenses**

| 11. | The Company will reimburse (or procure the reimbursement        of) all out-of-pocket expenses properly and reasonably incurred by you        in the course of carrying out your duties subject to production of receipts    or other appropriate evidence of payment. |
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**Other Benefits**

| 12. | For the avoidance of doubt, you will not be eligible        to receive any payments or benefits other than as provided for by this    Letter of Appointment. |
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**Other directorships and business interests**

| 13. | The Company recognises that you have        other duties and business interests. Accordingly, you will be expected        to notify the Chairman        and the Company Secretary of any direct conflict of interest which may        arise due to your duties as Non-Executive Director of the Company and        any other duties or business interests which you currently have. In particular        (and prior to your appointment as Chairman) you are required to seek        the Chairman’s agreement before taking on any additional commitments        that might affect the time you are required to spend performing your    duties pursuant to the Appointment. |
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| **Restraint on Activities and Confidentiality** |
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| 14.                                             | Except insofar as such information is already        in the public domain you will keep secret and will not at any time (whether        during the course of your Appointment or thereafter) use for your own        or another's advantage, or reveal to any person, firm, company or organisation        and shall take appropriate steps (where necessary) to prevent the publication        or disclosure of any information relating to the business or interests        of the Company or Group Company or any secret or confidential information        acquired in consequence of your Appointment which you know or ought reasonably    to have known to be confidential. |

**Governing Law**

| 15. | This Letter of Appointment is governed by, and    shall be construed in accordance with, the laws of England. |
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Please confirm your agreement to the above by signing and returning to me the enclosed duplicate of this letter. 

Yours sincerely 

 

| /s/    Debjani Jash                                                                                                 |   |
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| **FOR            AND ON BEHALF OF****IMPERIAL CHEMICAL INDUSTRIES PLC**                                                  |   |

I have read and agree to the above terms regarding my Appointment.

| /s/ Peter B       Ellwood****                                                                                            | 1.7.03****                                                                                                               |
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| **PETER    ELLWOOD**                                                                                                     | **DATE**                                                                                                                 |

 

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