**Exhibit 4.19**

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NATIONAL GRID TRANSCO PLC

 

THE RULES OF   THE PERFORMANCE SHARE PLAN

| Date approved        by shareholders:             | 23        July 2002    |
|--------------------------------------------------------|------------------------|
|                                                   |                   |
| Date adopted        by the Board:                      | 17 October        2002 |
|                                                   |                   |
| Date amended        by the Share Schemes Sub-Committee | 26 June 2003           |
|                                                   |                   |
| Date amended        by the Share Schemes Sub-Committee | 5 May 2004             |

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**The National Grid Transco      Plc Performance Share Plan**

| **1.** | **Definitions and Interpretation** |
|--------|------------------------------------|
|   |                               |

| (1)    | In this Plan, unless the context otherwise        requires: |
|--------|-------------------------------------------------------------|
|   |                                                        |

|   | “**ADS**” means        an American depository share representing ordinary shares of the Company; |
|--------|------------------------------------------------------------------------------------------------------------|
|   |                                                                                                       |

|   | “**Award**” means        a Share Right or an Option; |
|--------|----------------------------------------------------------------|
|   |                                                           |

|   | the “**Board**” means        the board of directors of the Company; |
|--------|-------------------------------------------------------------------------------|
|   |                                                                          |

|   | the “**Committee**” means        the Remuneration Committee of the Board, consisting exclusively of non-executive        directors of the Company or if any of the events envisaged in Rules 7(1),        7(3) or 7(4) occurs then the Remuneration Committee as constituted immediately        before such event occurred; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                  |

|   | the “**Company**” means        National Grid Transco plc (registered in England and Wales No. 4031152); |
|--------|------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                   |

|   | the “**Grant Date**” means        in relation to an Award the date on which the Option or Share Right (as        appropriate) was granted; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                 |

|   | “**Group Member**” means: |
|--------|-------------------------------------|
|   |                                |

|  | (a)    | a Participating Company or a body corporate        which is (within the meaning of section 736 of the Companies Act 1985)        the Company’s holding company or a subsidiary of the Company’s        holding company; or |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   |                                                                                                                                                                                                                                 |

|  | (b)    | a body corporate which is (within the        meaning of section 258 of the Companies Act 1985) a subsidiary undertaking        of a body corporate within paragraph (a) above and has been designated        by the Board for this purpose; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   |                                                                                                                                                                                                                                             |

|   | the “**Listing Rules**” means        the listing rules made by the competent authority for the purposes of        Part VI of the Financial Services and Markets Act 2000; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                |

|   | the “**London Stock          Exchange**” means London Stock Exchange plc; |
|--------|-------------------------------------------------------------------------------------|
|   |                                                                                |

|   | the “**Merger**” means        the merger between the Company and Lattice Group plc; |
|--------|-----------------------------------------------------------------------------------------------|
|   |                                                                                          |

|   | the “**Model Code**” means        the Model Code on directors’ dealings in securities as set out        in the Appendix to Chapter 16 to the Listing Rules; |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                       |

|   | “**Option**” means        an option to acquire (whether by subscription or purchase) Shares in        the Company granted under the Plan; |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                |

|   | “**Participant**” means        a person who holds an Award; |
|--------|-----------------------------------------------------------------------|
|   |                                                                  |

|   | “**Participating          Company**” means the Company or any Subsidiary or any company          which is not under the control of any single person, but is under the          control of two persons (within the meaning of section 840 of the Taxes          Act 1988), one of them being the Company, and to which the Board has          resolved that this Plan shall for the time being extend; |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                             |

|   | “**Performance Condition**” means        a condition related to performance which is specified by the Committee        under Rule 3(1); |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                              |

|   | the “**PIan**” means        the National Grid Transco plc Performance Share Plan as herein set out        but subject to any alterations or additions made under Rule 10 below; |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |
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|   | “**Shares**” means        ordinary shares in the capital of the Company or, as the context requires,        ADSs; |
|--------|-----------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                        |

|   | “**Share Right**” means        a conditional right to receive Shares in the Company upon the terms and        conditions set out in the Plan; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                    |

|   | “**Subsidiary**” means        a body corporate which is a subsidiary of the Company (within the meaning        of section 736 of the Companies Act 1985); |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                |

|   | the “**Takeover          Code**” means the Code on Takeovers and Mergers issued by the          Panel on Takeovers and Mergers, as from time to time modified, extended          or reissued; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                    |

|   | the “**Taxes Act          1988**” means the Income and Corporation Taxes Act 1988; and |
|--------|--------------------------------------------------------------------------------------------------|
|   |                                                                                             |

|   | the “**Trustees**” means        the trustee or trustees for the time being of any trust established for        the benefit of all or most of the employees of the Company and/or its        Subsidiaries. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                |

| (2)    | Any reference in this Plan to any enactment        includes a reference to that enactment as from time to time modified,        extended or re-enacted. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                    |

| (3)    | Words of the feminine gender shall        include the masculine and vice versa unless, in either case, the context        requires otherwise or is otherwise stated. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                 |

| (4)    | Expressions in italics are for guidance        only and do not form part of this Plan. |
|--------|----------------------------------------------------------------------------------------|
|   |                                                                                   |

| **2.** | **Eligibility** |
|--------|-----------------|
|   |            |

|   | A person is eligible to        be granted an Award if (and only if) he is an employee (including a director        who is also an employee) of a Participating Company. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                    |

| **3.** | **Grant of Awards** |
|--------|---------------------|
|   |                |

| (1)    | The Committee or the Trustees may by        deed (but, in the case of the Trustees, only following a recommendation        of the Committee) grant an Award over Shares upon the terms set out in        this Plan and upon such other terms including Performance Conditions        as the person granting the Award may specify to any person who is eligible        to be granted an Award in accordance with Rule 2 above. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |

| (2)    | Subject to sub-rules 5(5), 6(4) and        7(5), unless the Committee determines otherwise prior to or on the Grant        Date, the Performance Condition shall be measured over a three year period        ending on or before the third anniversary of the Grant Date. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                      |

| (3) | If, after the Committee or the Trustees        (as the case may be) have imposed a Performance Condition, events happen        which causes the Committee to consider that it is no longer appropriate        the Committee may vary such condition provided always that any such amendment        may only be one which the Committee reasonably considers will result        in a fairer measure of the performance, will ensure that this Plan operates        more effectively in the achievement of its purpose of providing share        benefits for employees who contribute to the prosperity of the Company        and its shareholders, and will be neither substantially more nor less        difficult to satisfy than the original condition was intended to be at        the time of its grant. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |
|----------------------------|
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| (4)    | Whether an Award is an Option, or a        Share Right shall be determined by the Committee and stated at the Grant        Date. The Committee may determine to grant an Award to acquire ADSs and        references in these rules to Shares shall be construed accordingly. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                          |

| (5)    | The price (if any) at which Shares        may be acquired pursuant to an Award shall be determined by the Committee        and stated at the Grant Date. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                     |

| (6)    | An Award granted to any person: |
|--------|---------------------------------|
|   |                            |

|   | (a)    | shall not be capable of being transferred        by him, other than to his personal representatives following death; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                     |

|   | (b)    | shall lapse forthwith if he is adjudged        bankrupt. |
|--------|--------|----------------------------------------------------------|
|   |   |                                                     |

| (7)    | An Award may only be granted: |
|--------|-------------------------------|
|   |                          |

|   | (a)    | within the period of six weeks beginning        with: |
|--------|--------|-------------------------------------------------------|
|   |   |                                                  |

|   |   | (i)    | the completion of the Merger; or |
|--------|--------|--------|----------------------------------|
|   |   |   |                             |

|   |   | (ii)   | the dealing day next following the        date on which the Company announces its results for any period; or |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                         |

|   | (b)    | at any other time when the circumstances        are considered by the Committee to be sufficiently exceptional to justify        its grant; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                            |

|   | (c)    | within the period of 10 years beginning        with the date on which this Plan is adopted by the Company. |
|--------|--------|------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                       |

| (8)    | The grant of an Award shall be subject        to the provisions of the Model Code and to obtaining any approval or        consent required under the provisions of the Listing Rules or the Takeover        Code, or of any other enactment or regulation applicable to such grant. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                |

| **4.** | **Limits** |
|--------|------------|
|   |       |

| (1)    | No Awards shall be granted in any year        which would, at the time they are granted, cause the number of Shares        in the Company which shall have been or may be issued in pursuance of        options granted in the period of 10 calendar years ending with that year,        or been issued in that period otherwise than in pursuance of options,        under this Plan or under any other executive share scheme adopted by        the Company or a Subsidiary to exceed such number as represents 5 per        cent. of the ordinary share capital of the Company in issue at that time. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

| (2)    | No Awards shall be granted in any year        which would, at the time they are granted, cause the number of Shares        in the Company which shall have been or may be issued in pursuance of        options granted in the period of 10 calendar years ending with that year,        or been issued in that period otherwise than in pursuance of options,        under this Plan or under any other employees’ share scheme adopted        by the Company or a Subsidiary to exceed such number as represents 10        per cent. of the ordinary share capital of the Company in issue at that        time. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

| (3) | No person shall be granted Awards which        would, at the time they are granted, cause the aggregate market value        of the Shares which he may acquire in pursuance of Awards granted to        him under the Plan in any financial year of the Company to exceed 125 per cent.        of the annual base salary of such person, and for the purposes of this        sub-rule: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |
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|  | (a)    | a person’s base salary shall        be taken to be his current base salary (excluding benefits in kind) expressed        as an annual rate in respect of the financial year of the Company in        which the Grant Date of the Award falls; and |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   |                                                                                                                                                                                                                                                   |

|  | (b)    | where a payment of remuneration is        made otherwise than in sterling, the payment shall be treated as being        of the amount of sterling ascertained by applying such rate of exchange        as published in a national newspaper on the Grant Date as the Committee        shall reasonably determine. |
|--|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   |                                                                                                                                                                                                                                                                                                              |

| (4)    | For the purposes of this Rule, the        market value of the Shares in relation to which an Award was granted        shall be calculated by reference to the market value of the Shares on        the Grant Date. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                               |

| (5)    | References in this Rule 4 to Shares        being issued pursuant to the exercise of options shall include any Shares        issued for the purpose of satisfying any such option. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                              |

| (6)    | For the purposes of sub-rules (1) and        (2) above, any shares in National Grid Holdings One plc (company number        2367004) which have been issued (or remain issuable) under any executive        or employees’ share scheme (as the case may be) shall be treated        as Shares in the Company, subject to the proviso that: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                            |

|   | (a)    | any Shares issued or issuable pursuant        to any options granted as “Replacement Options” under paragraph        (f) of the Unapproved Appendix to the National Grid Executive Share Option        Scheme (1990) shall be regarded as having been granted on the date that        the “1998 Option” (as that term is defined in such paragraph)        to which they relate was granted; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                 |

|   | (b)    | any Shares issued or issuable pursuant        to any option granted under The National Grid Company PLC’s 1995        Unapproved Savings Related Share Option Scheme and any corresponding        option granted under The National Grid Company PLC’s Savings Related        Share Option Scheme established in 1990 shall be treated as a single        option in recognition that only one or other, but not both, of such options        may be exercised. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

| **5.** | **Exercise of Options** |
|--------|-------------------------|
|   |                    |

| (1)    | The exercise of any Option shall be        effected in the form and manner prescribed by the Board. |
|--------|-----------------------------------------------------------------------------------------------------|
|   |                                                                                                |

| (2)    | Subject to sub-rule (4) below and to        Rules 7(1), 7(3) and 7(4) below, an Option may not be exercised before        the fourth anniversary of the Grant Date and subject to sub-rule (10)        below, an Option may be exercised in the three months following the fourth        anniversary of the Grant Date. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                    |

| (3)    | Subject to sub-rule (4) below and to        Rule 7(5) below, an Option may not be exercised if the Performance Condition        (if any) applicable to that Option is not satisfied. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                 |

| (4)    | Subject to sub-rules (5) and (6) below,        if any Participant ceases to be a director or employee of a Group Member,        the following provisions apply in relation to any Option granted to him: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                     |

|   | (a) | if he so ceases by reason of death,        unless the Committee determines otherwise, any Option granted to him        may (and must, if at all) be exercised by his personal representatives        within 12 months after the date of his death, provided that his death        occurs at a time when either he is a director or employee of a Group        Member or he is entitled to exercise the Option by virtue of this sub-rule        5(4); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |
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|  | (b)    | if he so ceases by reason of injury,        disability, pregnancy or redundancy (within the meaning of the Employment        Rights Act 1996), or by reason only that his office or employment is        in a company which ceases to be a Group Member, or relates to a business        or part of a business which is transferred to a person who is not a Group        Member, unless the Committee determines otherwise, the Option may (and        subject to paragraph (a) above must, if at all) be exercised, within        the exercise period; |
|--|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

|  | (c)    | if he so ceases by reason of retirement        on reaching the age at which he is bound to retire in accordance with        the terms of his contract of employment, unless the Committee determines        otherwise, the Option may (and subject to paragraph (a) above must, if        at all) be exercised within the exercise period; |
|--|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   |                                                                                                                                                                                                                                                                                                                                       |

|  | (d)    | if he so ceases for any other reason        before the third anniversary of the Grant Date, the Option may not be        exercised at all unless the Committee shall so permit, in which event        it may (and subject to paragraph (a) above must, if at all) be exercised        to the extent permitted by the Committee within the exercise period; |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   |                                                                                                                                                                                                                                                                                                                                                       |

|   | and in paragraphs (b),        (c) and (d) of this sub-rule **the exercise period** is the period        which shall expire 12 months in the cases where paragraphs (b) or (d)        above apply or six months in cases where paragraph (c) above applies        after his so ceasing, or such later date as the Committee may determine. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                      |

| (5)    | In relation to an Option which would        be exercisable by virtue of an event mentioned in sub-rule (4) above,        that Option shall become exercisable in respect of a number of Shares        (if any) calculated on the following basis: |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                              |

|   | (a)    | by determining the extent to which        the Performance Condition has been satisfied on the last occasion on        which the Performance Condition was measured before the date on which        such event occurs in respect of the Option; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                               |

|   | (b)    | by applying a pro rata reduction of        the number of Shares determined under paragraph (a) above on the basis        of the number of complete months for which the Option has been subsisting        bears to 36 months, |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                          |

|   | unless the Committee decides        that this sub-rule (5) operates unfairly in the circumstances in which        case it may, in its discretion, determine that the Option should be treated        in such other manner as it so decides. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                        |

| (6)    | If any Participant ceases to be a director        or employee between the third and fourth anniversaries of the Grant Date,        the following provisions will apply in relation to any Option granted        to him: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                    |

|   | (a)    | if he so ceases for a reason specified        in paragraphs (a), (b) or (c) of sub-rule (4) above, the provisions of        those paragraphs will apply; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                     |

|   | (b)    | if he so ceases for any other reason        (other than dismissal for misconduct), any Option in respect of which        the Performance Condition has been satisfied may be exercised in accordance        with sub-rule (2) above; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                     |

|   | (c) | if he so ceases by reason of dismissal        for misconduct, the Option will lapse forthwith. |
|--------|-----|------------------------------------------------------------------------------------------------|

|                            |
|----------------------------|
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| (7)    | A Participant shall not be treated        for the purposes of sub-rule (4) above as ceasing to be a director or        employee of a Group Member until such time as he is no longer a director        or employee of any Group Member. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                    |

| (8)    | Notwithstanding any other provision        of the Plan, an Option may not be exercised after the expiration of the        period of 10 years (or such shorter period as the Committee may have        determined before its grant) beginning with the Grant Date. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                              |

| (9)    | Within 30 days after an Option has        been exercised by any person, the grantor of the Option shall procure        the transfer to him (or a nominee for him) of the number of Shares in        respect of which the Option has been exercised, provided that: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                               |

|   | (a)    | the Board considers that the transfer        thereof would be lawful in all relevant jurisdictions; and |
|--------|--------|---------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                    |

|   | (b)    | in a case where a Group Member or the        Trustees is obliged to (or would suffer a disadvantage if they were not        to) account for any tax (in any jurisdiction) and/or for any social security        contributions recoverable from the person in question and/or any employer’s        social security/National Insurance contributions which the person has        agreed to pay (together, the “**Tax Liability**”) for        which the person in question is liable by virtue of the exercise of the        Option, that person has either: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

|   |   | (i)    | made a payment to the Group Member        or the Trustees of an amount equal to the Tax Liability; or |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                  |

|   |   | (ii)   | entered into arrangements acceptable        to that Group Member, the Trustees or another Group Member to secure        that such a payment is made (whether by authorising the sale of some        or all of the Shares on his behalf and the payment to the relevant person        of the relevant amount out of the proceeds of sale or otherwise). |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                                                                                                                                                                                   |

| (10)   | The exercise of any Option and the        transfer of Shares under the Plan shall be subject to the provisions        of the Model Code and to obtaining any approval or consent referred to        in Rule 3(8) above. Where the transfer of Shares pursuant to an Award        is prohibited pursuant to the Model Code at any time, such transfer shall        instead take place as soon as reasonably practicable after it is no longer        prohibited by the Model Code. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

| (11)   | Any Shares issued under this Plan in        respect of Options shall rank equally in all respects with Shares of        the same class then in issue except for any rights attaching to those        Shares by reference to a record date prior to the date of allotment. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                      |

| **6.** | **Vesting of Share Rights** |
|--------|-----------------------------|
|   |                        |

|   | (1)    | Subject to sub-rules (3) below and        to Rules 7(1), 7(3) and 7(4) below, the grantor of a Share Right (the “Grantor”)        shall procure that the Shares subject to the Share Right are transferred        to a Participant as soon as reasonably practicable after the fourth anniversary        of the Grant Date. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                  |

|   | (2) | Subject to sub-rule (3) below and to        Rule 7(5) below, no Shares shall be transferred pursuant to sub-rule        (1) above in respect of a Share Right unless the Performance Condition        (if any) applicable to that Share Right is satisfied. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |
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| (3)    | Subject to sub-rules (4) and (5) below,        if any Participant ceases to be a director or employee of a Group Member,        the following provisions apply in relation to any Share Right granted        to him: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                 |

|   | (a)    | if he so ceases by reason of death,        unless the Committee determines otherwise, the Grantor will procure that        Shares will be transferred to his personal representatives within 12        months after the date of his death, provided that his death occurs at        a time when either he is a director or employee of a Group Member or        he is entitled to receive a transfer of Shares by virtue of this sub-rule 6(3); |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

|   | (b)    | if he so ceases by reason of injury,        disability, pregnancy or redundancy (within the meaning of the Employment        Rights Act 1996), or by reason only that his office or employment is        in a company which ceases to be a Group Member, or relates to a business        or part of a business which is transferred to a person who is not a Group        Member, unless the Committee determines otherwise, the Grantor will procure        that Shares will be transferred to him (and subject to paragraph (a)        above must, if at all) within the transfer period; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

|   | (c)    | if he so ceases by reason of retirement        on reaching the age at which he is bound to retire in accordance with        the terms of his contract of employment, unless the Committee determines        otherwise, the Grantor will procure that Shares will be transferred to        him, (and subject to paragraph (a) above must, if at all) within the        transfer period; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                   |

|   | (d)    | if he so ceases for any other reason        before the third anniversary of the Grant Date, the Share Right will        lapse unless the Committee determines otherwise, in which event the Grantor        will procure that Shares will be transferred to him (and subject to paragraph        (a) above must, if at all) within the transfer period to the extent permitted        by the Committee; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                   |

|   | and in paragraphs (b),        (c) and (d) of this sub-rule **the transfer period** is the period        which shall expire 12 months in the cases where paragraphs (b) or (d)        above apply or six months in cases where paragraph (c) above applies        after his so ceasing, or such later date as the Committee may determine. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                      |

| (4)    | In relation to Shares which would be        transferred to a Participant by virtue of an event mentioned in sub-rule        (3) above, the number of Shares (if any) which will be transferred will        be calculated on the following basis: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                             |

|   | (a)    | by determining the extent to which        the Performance Condition has been satisfied on the last occasion on        which the Performance Condition was measured before the date on which        such event occurs in respect of the Share Right; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                    |

|   | (b)    | by applying a pro rata reduction to        the number of Shares determined under paragraph (a) above on the basis        of the number of complete months for which the Share Right has been subsisting        bears to 36 months, |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                               |

|   | unless the Committee decides        that this sub-rule (4) operates unfairly in the circumstances in which        case it may, in its discretion, determine that the Share Right should        be treated in such other manner as it so decides. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |
|----------------------------|
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| (5)    | If any Participant ceases to be a director        or employee between the third and fourth anniversaries of the Grant Date,        the following provisions apply in relation to any Share Right granted        to him: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                    |

|   | (a)    | if he so ceases for a reason specified        in paragraphs (a), (b) or (c) of sub-rule (3) above, the provisions of        those paragraphs will apply; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                     |

|   | (b)    | if he so ceases for any other reason        (other than dismissal for misconduct), the Grantor will procure that        Shares will be transferred to him in respect of a Share Right for which        the Performance Condition has been satisfied in accordance with sub-rule        (1) above; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                  |

|   | (c)    | if he so ceases by reason of dismissal        for misconduct, the Share Right shall lapse forthwith. |
|--------|--------|------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                 |

| (6)    | A Participant shall not be treated        for the purpose of sub-rule (3) of this Rule as ceasing to be a director        or employee of a Group Member until such time as he is no longer a director        or employee of any Group Member. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                          |

| (7)    | No transfer of Shares shall be made        under the Plan if the Board considers that it would not be lawful or        practicable in the relevant jurisdiction. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                             |

| (8)    | Where the Grantor is required to procure        a transfer of Shares comprised in a Share Right to a Participant pursuant        to this Rule 6 and where the Trustees or a Group Member are obliged to        (or would suffer a disadvantage if they were not to) account for any        tax (in any jurisdiction) and/or for any social security contributions        recoverable from the Participant and/or any employer’s social security/National        Insurance Contributions which the Participant has agreed to pay (together,        the “**Tax Liability**”) and for which the Participant        is liable by virtue of the transfer of the Shares, the Grantor shall        be entitled to procure the sale of sufficient Shares combined in the        Share Right to satisfy such Tax Liability unless they or a Group Member        has received on or prior to the transfer of the Shares a payment from        the Participant of an amount not less than the Tax Liability or unless        the Participant has entered into arrangements acceptable to the Trustees        or a Group Member to ensure that such a payment is made (whether by authorising        the sale of some or all of the Shares on his behalf and the payment to        the relevant person of the amount equal to the Tax Liability out of the        proceeds of sale or otherwise). |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

| (9)    | Notwithstanding any other provision        of this Plan, if a Tax Liability has (as defined in sub-rule (8) above)        arisen prior to a transfer of Shares to a Participant in respect of a        Share Right then the Grantor shall have authority to procure the sale        of sufficient of the Shares to discharge the Tax Liability and the number        of Shares comprised in the Share Right shall be reduced accordingly. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                      |

| (10)   | The transfer of Shares under the Plan        shall be subject to the provisions of the Model Code and to obtaining        any approval or consent referred to in Rule 3(8) above. Where the transfer        of Shares pursuant to a Share Right is prohibited pursuant to the Model        Code at any time, such transfer shall instead take place as soon as reasonably        practicable after it is no longer prohibited by the Model Code. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| (11) | Any Shares issued under this Plan in        respect of Share Rights shall rank equally in all respects with Shares        of the same class then in issue except for any rights attaching to those        Shares by reference to a record date prior to the date of allotment. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |
|----------------------------|
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| **7.** | **Takeover, Reconstruction and Winding-up** |
|--------|---------------------------------------------|
|   |                                        |

| (1)    | Subject to sub-rules (5) and (7) below,        if any person obtains control of the Company (within the meaning of section        840 of the Taxes Act 1988) as a result of making a general offer to acquire        Shares in the Company, or having obtained control makes such an offer,        the Committee shall within seven days of becoming aware thereof notify        every Participant thereof and, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                            |

|   | (a)    | in respect of an Option, subject to        earlier lapse under Rule 5(4), any Option may be exercised within one        month (or such longer period up to a maximum of six months as the Committee        may permit) of the notification but to the extent that it is not exercised        within that period shall lapse on the expiry of that period; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                          |

|   | (b)    | in respect of a Share Right, procure        the transfer to a Participant of the Shares subject to a Share Right        as soon as reasonably practicable even if no obligation to procure a        transfer under Rule 6(1) above has arisen (but not if the Share Right        has lapsed pursuant to Rule 6(3) above or the relevant Shares have already        been transferred to the Participant). |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                     |

| (2)    | For the purposes of sub-rule (1) above,        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. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                            |

| (3)    | Subject to sub-rules (5) and (7) below,        if any person becomes bound or entitled to acquire Shares in the Company        under sections 428 to 430F of the Companies Act 1985, or if the Company        passes a resolution for voluntary winding up, or if an order is made        for the compulsory winding up of the Company, then: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                          |

|   | (a)    | in respect of an Option, the Committee        shall forthwith notify every Participant thereof and, subject to earlier        lapse under Rule 5(4), any Option may be exercised within one month of        such notification, but to the extent that it is not exercised within        that period shall (notwithstanding any other provision of this Plan)        lapse on the expiration of that period; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                            |

|   | (b)    | in respect of a Share Right, the Committee        shall procure the transfer to a Participant of the Shares subject to        a Share Right as soon as reasonably practicable even if no obligation        to procure a transfer under Rule 6(1) above has arisen (but not if the        Share Right has lapsed pursuant to Rule 6(3) above, or the relevant Shares        have already been transferred to the Participant). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                          |

| (4)    | Subject to sub-rules (5) and (7) below,        if a scheme of arrangement or compromise under section 425 of the Companies        Act 1985 is proposed then: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                         |

|   | (a)    | in respect of an Option, the Committee        shall forthwith notify every Participant that, subject to earlier lapse        under Rule 5(4) above, an Option may be conditionally exercised within        the period commencing from the date of notification and ending on the        day immediately preceding the date scheduled for the Court hearing or        such later date up to a maximum of six months from the Court hearing        as the Committee may determine. If the Court sanctions the scheme of        arrangement or compromise: |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

|   |   | (i)    | any Option so conditionally exercised        shall immediately become unconditionally exercised by the Participant;        and |
|--------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                           |

|   |   | (ii) | any Option not so conditionally exercised        shall lapse on the expiration of that period. |
|--------|--------|------|------------------------------------------------------------------------------------------------|

|                            |
|----------------------------|
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|   |   | However, if the Court declines        to sanction the scheme of arrangement or compromise, the conditional        exercise shall not be effective and the Option shall continue to subsist. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                        |

|  | (b)    | in respect of a Share Right, if the        scheme of arrangement or compromise is sanctioned by the Court, then        the Committee shall procure the transfer to a Participant of the Shares        subject to a Share Right as soon as reasonably practicable even if no        obligation to procure a transfer under Rule 6(1) above has arisen (but        not if the Share Right has lapsed pursuant to Rule 6(3) above, or the        relevant Shares have already been transferred to the Participant). |
|--|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

| (5)    | In relation to an Award which would        be exercisable or vest by virtue of an event mentioned in sub-rules (1),        (3) or (4) above, the number of Shares (if any) in respect of which the        Award will be exercisable or vest will be calculated on the following        basis: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                          |

|   | (a)    | by determining the extent to which        the Performance Condition has been satisfied on the date on which such        event occurs (as if that date were the end of the relevant performance        period) in respect of the Award; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                       |

|   | (b)    | by applying a pro rata reduction of        the number of Shares determined under paragraph (a) above on the basis        of the time which the Award has been subsisting bears to three years |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                          |

|   | unless the Committee decides        that this sub-rule (5) operates unfairly in the circumstances in which        case it may, in its discretion, determine that the Award should be treated        in such other manner as it so decides. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                       |

| (6)    | If a demerger, special dividend or        other event which, in the opinion of the Committee would affect the Share        price to a material extent, is proposed then the Committee acting fairly        and reasonably may at its discretion forthwith notify every Participant        that, subject to earlier lapse under Rules 5 or 6 or the other provisions        of this Rule 7, an Award may, subject to sub-rule (5) above be exercised        (or Shares transferred to a Participant as appropriate) provided that        if an Award is exercised in advance of and conditional upon such event        and such event shall not occur then the conditional exercise shall not        be effective and the Award shall continue to subsist. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

| (7)    | If:    |
|--------|--------|
|   |   |

|   | (a)    | the events referred to in this Rule        7 are part of an arrangement which will mean that the company will be        under the control of another company (within the meaning of Section 840        of the Taxes Act 1988) or the business of the Company is carried on by        another company, and either the persons who owned the Shares in the Company        immediately before the change of control will immediately afterwards        own more than 50 per cent. of the Shares in that other company or the        Committee in its discretion determines that such arrangement constitutes        a merger (a “**Reorganisation**”); and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

|   | (b) | an equivalent Award (as determined        by the Committee) is offered to the Participant in consideration of the        surrender of his existing Award under this Plan |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                                                                                                                                                                                                                                                                                                                              |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | then an Award shall not        become exercisable (or no Shares shall be transferred to a Participant        in respect of a Share Right) as a result of the Reorganisation and, subject        to earlier lapse under Rule 5(4), or 6(3), shall lapse three months following        the notification of the Reorganisation to every Participant. |

|                            |
|----------------------------|
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| (8)    | Unless the Committee determines otherwise,        any equivalent Award offered to a Participant in the circumstances referred        to in sub-rule (7) above shall be subject to the Performance Condition        which applied to the original Award as varied by the Committee pursuant        to sub-rule 3(3). |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                |

| **8.** | **Variation of Capital** |
|--------|--------------------------|
|   |                     |

| (1)    | Subject to sub-rule (3) below, in the        event of any variation of the share capital of the Company, an increase        in its share capital, the payment of a capital dividend, a demerger or        similar event involving the Company, the Committee may make (or procure        that the Trustees make) such adjustments as it considers appropriate        under sub-rule (2) below. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                           |

| (2)    | An adjustment made under this sub-rule        shall be to one or more of the following: |
|--------|-----------------------------------------------------------------------------------------|
|   |                                                                                    |

|   | (a)    | the number of Shares in respect of        which any Option may be exercised; |
|--------|--------|------------------------------------------------------------------------------|
|   |   |                                                                         |

|   | (b)    | where any Option has been exercised        but no Shares have been transferred pursuant to the exercise, the number        of Shares which may be so transferred; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                  |

|   | (c)    | the number of shares in respect of        which a Share Right subsists. |
|--------|--------|-------------------------------------------------------------------------|
|   |   |                                                                    |

| (3)    | An adjustment of Shares pursuant to        sub-rule (2) above can be effected through the grant of further Awards. |
|--------|--------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                               |

| **9.** | **Dividends** |
|--------|---------------|
|   |          |

| (1)    | No Award shall confer any beneficial        interest in any Share subject to it prior to the Participant (or his        personal representatives, as appropriate) or his (or their) nominee being        registered as the holder of the Share and, for the avoidance of doubt,        no Participant (nor his personal representatives) shall be entitled to        any dividends paid or any other distribution made, or to exercise or        direct the exercise of any votes or any other rights, in respect of any        such Share by reference to a record date before he (or they) or his (or        their) nominee is registered as the holder of the Shares. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

| (2)    | Notwithstanding sub-rule (1) above,        the Committee may, in its discretion, procure that the payment to a Participant        of a sum equivalent to dividends (net of all deductions required by law        and any applicable commissions or other charges) on all or part of those        Shares subject to an Award which can be treated as having vested following        the satisfaction of any Performance Condition applicable to that Award. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

| (3)    | Any amount referred to in sub-rule        (2) above may, at the discretion of the Committee, be paid either |
|--------|-------------------------------------------------------------------------------------------------------------|
|   |                                                                                                        |

|   | (a)    | between the third and fourth anniversaries        of the Grant Date; or |
|--------|--------|-------------------------------------------------------------------------|
|   |   |                                                                    |

|   | (b)    | as soon as reasonably practicable following        the exercise of an Option or a transfer of Shares subject to a Share        Right to a Participant. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                   |

| (4)    | Any amount referred to in sub-rule        (2) above may, at the discretion of the Committee, be paid either in        cash or in the form of Shares in the Company. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                |

| **10.** | **Alterations** |
|---------|-----------------|
|    |            |

| (1) | Subject to sub-rules (2) and (4) below,        the Committee may at any time alter this Plan. |
|-----|-----------------------------------------------------------------------------------------------|

|                            |
|----------------------------|
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| (2)    | Subject to sub-rule (3) below, no alteration        to the advantage of the persons to whom Awards have been or may be granted        shall be made to any of Rules 2, 3(1), 3(2), 3(3), 3(5), 3(6) and 3(7),        4, 5(1), 5(2), 5(3), 5(4), 5(5), 5(6), 5(8), 5(9), 5(10), 5(11), 6(1),        6(2), 6(3), 6(4), 6(5), 6(7), 6(8), 6(9), 6(10), 6(11), 7, 8 and 9 without        the prior approval by ordinary resolution of the members of the Company        in general meeting. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

| (3)    | Sub-rule (2) above shall not apply        to any minor alteration to benefit the administration of this Plan, to        take account of a change in legislation or to obtain or maintain favourable        tax, exchange control or regulatory treatment for Participants or any        Group Member. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                  |

| (4)    | No alteration to the disadvantage of        any Participant shall be made under sub-rule (1) above unless: |
|--------|------------------------------------------------------------------------------------------------------------|
|   |                                                                                                       |

|   | (a)    | the Committee shall have invited every        relevant Participant to give an indication as to whether or not he approves        the alteration; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                 |

|   | (b)    | the alteration is approved by a majority        of those Participants who have given such an indication. |
|--------|--------|----------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                     |

| (5)    | As soon as reasonably practical after        any amendment under sub-rule (1) above, the Committee shall give written        notice thereof to the Trustee and any Participant who in its opinion        is materially affected thereby. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                     |

| **11.** | **Cash Equivalent** |
|---------|---------------------|
|    |                |

| (1)    | Where an Option granted under this        Plan has been exercised by any person in respect of any number of Shares,        or where Shares subject to a Share Right could be transferred to a person        pursuant to Rules 6 or 7 above, and those Shares have not yet been transferred        to him, the Committee may determine that, in substitution for his right        to acquire such number of those Shares as the Committee may decide (but        in full and final satisfaction of his said right), he shall be paid by        way of additional emoluments a sum equal to the cash equivalent of that        number of Shares. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

| (2)    | For the purposes of this Rule, the **cash          equivalent** of any Shares is the amount by which the Committee’s          opinion of the **market value** of those Shares on the day last          preceding the date on which the Option was exercised, or the Shares          subject to a Share Right would otherwise be transferred to a person          pursuant to Rules 6 and 7 above, exceeds the amount (if any) payable          by the Participant to acquire those Shares. If at the relevant time          shares of the same class as those shares were listed in The Stock Exchange          Daily Official List, **market value** should be the middle-market          quotation of shares of that class, as derived from that List, on the          dealing day last preceding that date. If the Shares are ADSs listed          on the New York Stock Exchange the **market value**should be the          closing price of ADSs on the New York Stock Exchange on the dealing          day last preceding that date. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

| (3)    | As soon as reasonably practicable after        a determination has been made under sub-rule (1) above that a person        shall be paid a sum in substitution for his right to acquire any number        of Shares: |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                 |

|   | (a)    | the Company shall pay to him or procure        the payment to him of that sum in cash; and |
|--------|--------|--------------------------------------------------------------------------------------------|
|   |   |                                                                                       |

|   | (b) | if he has already paid the Company        for those Shares, the Company shall return to him the amount so paid        by him. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|                            |
|----------------------------|
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| (4)    | There shall be made from any payment        under this Rule such deductions (on account of tax or similar liabilities)        as may be required by law or as the Committee may reasonably consider        to be necessary or desirable. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                     |

| **12.** | **Miscellaneous** |
|---------|-------------------|
|    |              |

| (1)    | The rights and obligations of any individual        under the terms of his office or employment with any Group Member shall        not be affected by his participation in this Plan or any right which        he may have to participate in it, and an individual who participates        in it and does not waive an Award within 30 days of its Grant Date shall        and does by participating in the Plan waive any and all rights to compensation        or damages in consequence of the termination of his office or employment        for any reason whatsoever insofar as those rights arise or may arise        from his ceasing to have rights under or be entitled to exercise or receive        Shares under any Award as a result of such termination. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

| (2)    | In the event of any dispute or disagreement        as to the interpretation of this Plan, or as to any question or right        arising from or related to this Plan, the decision of the Committee shall        be final and binding upon all persons. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                    |

| (3)    | Any notice or other communication under        or in connection with this Plan may be given either: |
|--------|-----------------------------------------------------------------------------------------------------|
|   |                                                                                                |

|   | (a)    | by personal delivery or by sending        it by post, in the case of a company to its registered office, and in        the case of an individual to his last known address, or, where he is        a director or employee of a Group Member, either to his last known address        or to the address of the place of business at which he performs the whole        or substantially the whole of the duties of his office or employment        or in the absence of their being such a place, the place of business        to which regular correspondence in connection with his employment is        sent; and where a notice or other communication is given by first class        post it shall be deemed to have been received 48 hours after it was put        into the post properly addressed and stamped; or |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

|   | (b)  |    in an electronic communication to an        address for the time being notified for that purpose to the person giving    the notice. |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------|
|   |      |                                                                                                                                         |

| (4)    | A Participating Company may provide        money to the Trustees or to any other person to enable that person to        acquire Shares to be held for the purposes of the Plan, or enter into        any guarantee or indemnity for these purposes, or meet the expenses of        the Trustees to the extent permitted by the Companies Act 1985. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                               |

| (5) | The Plan and all Awards granted under        it shall be governed by the laws of England and any dispute arising under        or in respect of this Plan or any such Award shall be subject to the        exclusive jurisdiction of the Courts of England. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |
|----------------------------|
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**Table      of Contents**

| **Contents** | **Page**                                         |
|--------------|--------------------------------------------------|
|         |                                             |   |
| 1.           | Definitions          and Interpretation          | 1 |
|         |                                             |   |
| 2.           | Eligibility                                      | 2 |
|         |                                             |   |
| 3.           | Grant          of Awards                         | 2 |
|         |                                             |   |
| 4.           | Limits                                           | 3 |
|         |                                             |   |
| 5.           | Exercise          of Options                     | 4 |
|         |                                             |   |
| 6.           | Vesting          of Share Rights                 | 6 |
|         |                                             |   |
| 7.           | Takeover,          Reconstruction and Winding-up | 9 |
|         |                                             |   |
| 8.           | Variation          of Capital                    | 11 |
|         |                                             |   |
| 9.           | Dividends                                        | 11 |
|         |                                             |   |
| 10.          | Alterations                                      | 11 |
|         |                                             |   |
| 11.          | Cash          Equivalent                         | 12 |
|         |                                             |   |
| 12.          | Miscellaneous                                    | 13 |

|                            |
|----------------------------|
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