Document:

Exhibit 4(c) 

IMPERIAL CHEMICAL
INDUSTRIES PLC 

RULES OF THE ICI
PERFORMANCE SHARE PLAN 

	         Directors' Adoption:	•
	
Expiry Date:      	•

RULES OF THE ICI PERFORMANCE
SHARE PLAN 

	1  	Definitions 

	1.1  	Meaning
of words used 

	 	
In
these Rules: 

	 	
“ADS”
means an American depository share (or a part of one) currently representing 4 ordinary
shares in the Company; 

	 	
“Award
Date” means the date referred to in Rule 8.1 on which a Participant becomes
entitled to a payment in respect of his Conditional Award; 

	 	
“Business
Day” means a day on which the London Stock Exchange (or, if relevant and if the
Committee determines, any stock exchange nominated by the Committee on which Shares are
traded) is open for the transaction of business in London; 

	 	
“Committee”
means a committee authorised to operate the Plan and which initially shall comprise the
Group Chairman, Group Chief Executive and EVP HR; 

	 	
“Conditional
Award” means a conditional right to a cash payment calculated in accordance with
Rule 8.2;  

	 	
“Conditional
Award Date” means the date on which the Committee resolves to make a Conditional
Award;  

	 	
“Company” means
Imperial Chemical Industries PLC; 

	 	
“Dealing
Regulations” means any statute, regulation or code adopted by the Company (being
or being based on the London Stock Exchange’s Model Code) for security transactions
by directors of listed companies or the equivalent in other countries; 

	 	
“Eligible
Employee” means any employee of any Participating Company who is not a director
of the Company and who has not given or received notice of termination of employment
(whether or not such termination is lawful); 

	 	
“Member
of the Group” means any of:  

	 	(i)	the
Company; and 

	 	(ii)	its
subsidiaries (within the meaning of Section 736 of the Companies Act 1985)           from
time to time; and 

	 	(iii)	any
company which is associated with the Company and is designated by REMCO as a
          Member of the Group; 

	 	
“NYSE” means
the New York Stock Exchange Inc; 

	 	
“Participant”
means an individual who has been made a Conditional Award under Rule 2 or his personal
representatives; 

	 	
“Participating
Company” means the Company and any subsidiary (within the meaning of Section 736
of the Companies Act 1985) designated by REMCO as a Participating Company; 

	 	
“Performance
Condition” means, in relation to each operation of the Plan, the conditions set
by REMCO, to determine whether or not and the extent to which any payment will be made in
respect of a Conditional Award at the end of the Performance Period or otherwise in
accordance with these Rules; 

	 	
“Performance
Period” means, in relation to each operation of the Plan, the period during which
the Performance Condition must be satisfied which is determined by REMCO under Rule 2.
This period will not be less than 3 financial years of the Company starting immediately
prior to the Conditional Award Date, and cannot be extended in respect of any Conditional
Award once notified to a Participant under Rule 2.4; 

	 	
“Plan” means
this plan known as “The ICI Performance Share Plan” as changed from time to
time;  

	 	
“REMCO” means
the remuneration committee of the Board made up exclusively of non-executive directors;  

	 	
“Rules” means
these Rules as amended from time to time;  

	 	
“Share”
means a fully paid ordinary share in the capital of the Company or securities representing
ordinary shares in the Company or, as the context may require, ADSs; and 

	 	
“Trust” means
The IMPKEMIX Trustee Limited or any other trust nominated by the Committee.  

	1.2  	Special
Schedules 

	 	
The
Rules of the Plan are subject, in the case of each Participant, to any special schedules
adopted by the Committee, which are appropriate to the jurisdiction in which he is
employed at the Conditional Award Date, or such other provisions as the Committee notify
him will apply. 

	2  	Operation
of the Plan 

	2.1  	Time
of operation 

	 	
Conditional
Awards may be made at any time determined by the Committee.  

	2.2  	Eligibility 

	 	
Any
Eligible Employee may be selected by the Committee to receive a Conditional Award under
the Plan. A person who is not an Eligible Employee on the Conditional Award Date will not
receive a Conditional Award. 

	2.3  	Performance
Condition 

	 	
The
Committee will make a Conditional Award on the basis that no payment will be made until
and to the extent that a Performance Condition has been satisfied during the Performance
Period. 

	 	
REMCO
may amend or waive the Performance Condition:  

	 	2.3.1 	in
accordance with the terms specified in the Performance Condition; or

	 	2.3.2 	if
events happen which cause the REMCO to reasonably consider that:

	 	(i) 	the
Performance Condition should be amended for the purpose of ensuring the
                    objective criteria against which the performance of the Participant
will then be                     measured will be a fairer measure of such performance;
or  

	 	(ii) 	the
Performance Condition should be waived.  

	2.4  	Notice 

	 	
The
Committee will notify each Participant who has been made a Conditional Award. The
notification will include: 

	 	2.4.1 	details
of the number of Shares notionally in the Conditional Award;

	 	2.4.2 	the
Conditional Award Date; 

	 	2.4.3 	the
Performance Period; 

	 	2.4.4 	details
of the Performance Condition which must be satisfied before any payment will be made; and

	 	2.4.5 	any
other conditions and terms of the Conditional Award, at the discretion of the Committee.

	2.5  	Making
Conditional Awards 

	 	
The
Committee will make Conditional Awards. Each Participant will receive a deed or other
document as evidence of the making of a Conditional Award. 

	2.6  	No
payment 

	 	
No
payment to the Company will be required on the making of a Conditional Award.  

	2.7  	Disclaimer
of Conditional Award 

	 	
Any
Participant may, by notice in writing to the Company Secretary, within 30 days after he is
notified in writing of an Conditional Award as described in Rule 2.4, disclaim his
Conditional Award, in whole or in part, and to the extent disclaimed the Conditional Award
will be deemed never to have been made. No payment will be due for any disclaimer. If no
disclaimer is received from a Participant, the Participant will be treated as having
accepted the Conditional Award, subject to the Rules. 

	2.8  	Disposal
restrictions 

	 	
Conditional
Awards may not be assigned, transferred or charged, provided that this does not apply to
the transmission of the Conditional Award on the death of a Participant to his personal
representatives. 

	2.9  	ADSs 

	 	
The
Committee may determine, in its absolute discretion to make Conditional Awards in respect
of ADSs, and where they do so references in these Rules to Shares shall be
construed accordingly. 

	3  	Acquiring
Shares 

	 	
Any
Participating Company may provide money to the trustee of the Trust or any other person to
enable them or him to acquire Shares to be held for the purposes of providing benefits
under the Plan, or enter into any guarantee or indemnity for those purposes, to the extent
permitted by Section 153 of the Companies Act 1985. For the avoidance of doubt the Company
may not issue new Shares in connection with Conditional Awards unless it obtains the prior
approval of shareholders in general meeting if such approval is required. 

	4  	Individual
limits 

	4.1  	Market
Value 

	 	4.1.1	in
relation to an ordinary share in the Company, on any day, the market value will be the
average of the middle market quotation (as derived from the Daily Official List of the
London Stock Exchange) on the 3 immediately preceding Business Days; and 

		4.1.2 	
in relation to an ADS, on any day the market value will be the average of the
closing prices for an ADS  as derived from the NYSE on the 3 immediately preceding
Business Days; 

	4.2  	Limits 

	 	
An
Eligible Employee must not be made a Conditional Award if it would, at the proposed
Conditional Award Date, cause the total market value of the Shares notionally comprised
in: 

	 	4.2.1 	the
proposed Conditional Award; and 

		4.2.2 	
any Conditional Awards already made to him in the same financial year of the Company (the
market value being taken on the Conditional Award Date of such Conditional Awards) 

	 	
to
exceed 100 per cent of his annual basic salary (excluding discretionary bonuses or
benefits in kind as determined by the Committee) on the Conditional Award Date or, if
later, at the time the Eligible Employee’s employment with a Participating Company
begins. 

	 	
The
limit in this Rule 4.2 may be exceeded if REMCO determines that exceptional circumstances
make it desirable that Conditional Awards should be granted in excess of that limit. 

	5  	Leaving
employment during the Performance Period before Award Date 

	5.1  	Lapse
of Conditional Award 

	 	
If
a Participant ceases to be employed by a Member of the Group before the end of the
Performance Period and neither of Rules 5.2 and 5.3 apply, all the Participant’s
Conditional Awards will lapse. REMCO may in exceptional circumstances determine that a
Conditional Award will not lapse where a Participant ceases to be a director or an
employee of any Member of the Group for any other reason and may allow the Conditional
Award to vest immediately or continue subject to any conditions it may determine. 

	5.2  	Retaining
the Conditional Award 

	 	
If,
during the Performance Period, a Participant ceases to be employed by a Member of the
Group for any of the reasons listed below and at least 12 months have elapsed between the
start of the Performance Period and the date of cessation, a payment will be made in
accordance with Rule 8 in respect of his Conditional Award. For the avoidance of doubt
payments will be made at the end of the Performance Period and will be subject to the
satisfaction of the Performance Condition. The payment (if any) will be calculated pro
rata by reference to the period between the start of the Performance Period and the date
of cessation as a proportion of the Performance Period. Rule 5.2.5 is subject to Rule 6.2. 

	 	
The
reasons are: 

	 	5.2.1 	retirement
in accordance with the terms of his contract of employment;

	 	5.2.2 	early
retirement by agreement with the Participant's employer;

	 	5.2.3 	injury,
disability, or ill-health (in each case, evidenced to the satisfaction of the Committee);

	 	5.2.4 	the
Participants' employing company ceasing to be a Member of the Group;

	 	5.2.5 	a
 transfer  of the  undertaking,  or the part of the  undertaking,  in which the
 Participant  works to a                  person which is not a Member of the Group;

	 	5.2.6 	redundancy;
or

	 	5.2.7 	any
other reason determined by the Committee.

	5.3  	Death 

	 	
If
during the Performance Period, a Participant ceases to be employed by a Member of the
Group by reason of death, a payment will be made to the Participant’s personal
representatives in accordance with Rule 8 in respect of his Conditional Award. For the
avoidance of doubt payments will be made at the end of the Performance Period and will be
subject to the satisfaction of the Performance Condition. The payment will be calculated
pro-rata by reference to the period between the start of the Performance Period and the
date of death as a proportion of the Performance Period. 

	5.4  	Meaning
of ceasing to be employed 

	 	
For
the purposes of this Rule 5 a Participant will not be treated as ceasing to be employed if
on that date he is or within 7 days becomes employed by another Member of the Group. 

	5.5  	Leaving
employment before the Award Date 

	 	
A
Participant who ceases to be employed by a Member of the Group between the end of the
Performance Period and the Award Date will in accordance with Rule 8 be made a payment
unless he left employment for misconduct (determined at the discretion of the Committee). 

	6  	Takeovers
and corporate reorganisations 

	6.1  	Application 

	 	
Rules
6.2 and 6.3 apply if, before the end of the Performance Period, any of the following
occurs:  

	 	6.1.1 	an
offer to obtain control of the Company becomes or is declared wholly unconditional;

	 	6.1.2 	the
Court sanctions a scheme of arrangement under Section 425 of the Companies Act 1985;

	 	6.1.3 	any
person  becomes  bound or entitled to acquire  Shares under  Sections 428 and 429 of the
Companies Act  1985; or 

	 	6.1.4 	a
resolution is passed for the voluntary winding-up of the Company.

	6.2  	Exchange
or immediate entitlement to payment 

	 	
When
Rules 5.2.5 or 6.1 applies, Conditional Awards may (if REMCO so agrees and determines) be
replaced by conditional awards in respect of the appropriate number of shares in another
company or companies. REMCO will determine whether or not such new awards will be subject
to any performance conditions. 

	 	
If
Rule 6.1 applies and replacement conditional awards are not so agreed and determined to be
made as set out above, the Performance Period will end on, and payments will be made as
soon as practicable after, the date specified in Rule 6.3 in accordance with Rule 8. The
amount of the payment will be determined by applying the Performance Condition at the date
specified in Rule 6.3. 

	6.3  	Dates 

	 	
The
dates referred to in Rule 6.2 are:  

	 	6.3.1 	in
the case of Rule 6.1.1, on the offer becoming or being declared unconditional;

	 	6.3.2 	in
the case of Rule 6.1.2, on the date of the Court order;

	 	6.3.3 	in
the case of Rule 6.1.3, on the date on which the person becomes bound or entitled; and

	 	6.3.4 	in
the case of Rule 6.1.4, on the date of the resolution.

	6.4  	The REMCO 

	 	
For
the purpose of dealing with Conditional Awards under this Rule 6, REMCO will consist of
the members immediately before the change of control or other relevant event. 

	7  	Rights
attaching to Shares 

	 	7.1 	Rights 

	 	
Participants
will have no rights in respect of Shares notionally comprised in his Conditional Award.  

	7.2  	Dividends 

	 	
The
Participant will not be entitled to receive dividends in respect of Shares notionally
comprised in his Conditional Award. 

	7.3  	Reorganisations
of share capital 

	 	
In
the event of any variation in the equity share capital of the Company, including a
variation in consequence of a capitalisation or rights issue, sub-division, consolidation
or reduction of share capital, the number of Shares notionally comprised in Conditional
Awards may be adjusted in such manner as REMCO considers appropriate (including
retrospective adjustments). The Committee will notify Participants of any changes made. 

	7.4  	Demergers
and corporate reorganisations 

	 	
Subject
to Rule 6.2, in the event of any demerger or corporate reorganisation involving the
Company, the number of Shares notionally comprised in Conditional Awards may be adjusted
in such manner as REMCO considers appropriate (including retrospective adjustments). In
addition, REMCO may make such other arrangements (including the grant of new conditional
awards over shares in any relevant company), as it considers appropriate in its
discretion. The Committee will notify Participants of any changes made. 

	8  	The
end of the Performance Period 

	8.1  	Determination
of Performance Condition 

	 	
REMCO
will, as soon as practicable following the end of the Performance Period (or at any other
time where the Rules state that the Performance Condition should be applied), determine: 

	 	8.1.1 	whether
and to what extent the Performance Condition has been satisfied;

	 	8.1.2 	the
number of Shares (if any) in  respect of which a payment  (if any) is to be made to each
 Participant;  and 

	 	8.1.3 	subject
to any Dealing Regulations, the Award Date.

	 	
Notwithstanding
any other provision, if REMCO reasonably believes that the underlying financial
performance of the Company during the Performance Period was not satisfactory, it may
determine that no payment will be made to any Participant in respect of Conditional Awards
relating to such Performance Period. 

	8.2  	Payments 

	 	
As
soon as practicable following the Award Date, and subject to Rules 5.5, 8.3 and 9 the
Company will procure that a payment be made to each Participant. The payment will be
calculated as follows: 

	 	
A
x B 

	 	
where: 

	 	
A
= the number of Shares determined under 8.1  

	 	
B
= the market value of a Share determined in accordance with Rule 4.1 on the Award Date  

	8.3  	Share
alternative 

	 	
The
Committee at its discretion may subject to Rules 10.4 and 10.5 satisfy an award by the
transfer of Shares to the participant. The number of Shares will be the number determined
under Rule 8.1. 

	9  	Withholding 

	 	
The
Company, any Member of the Group and/or the trustee of the Trust may, at any time,
withhold any amounts and make such arrangements (including sale of any Shares on behalf of
a Participant) as are necessary or desirable to meet any liability to taxation, social
security contributions or other appropriate levies in respect of Conditional Awards. 

	10  	General 

	10.1  	Conditional
Awards non-pensionable 

	 	
Conditional
Awards will not form part of a Participant’s remuneration for the purpose of
determining entitlement to any benefit of employment including any pension or retirement
benefit (including a retirement savings plan), life assurance, permanent health insurance
or other similar benefit, whether existing or subsequently introduced. 

	10.2  	Terms
of Employment 

		10.2.1 	
For the purposes of this Rule 10.2, “Employee” means any Participant, any
Eligible Employee or any other person. 

	 	10.2.2 	This
Rule 10.2 applies: 

	 	(i) 	whether
the Company has full discretion in the operation of the Plan, or whether
                    the Company could be regarded as being subject to any obligations in
the                     operation of the Plan;  

	 	(ii) 	during
an Employee’s employment or employment relationship; and  

	 	(iii) 	after
the termination of an Employee’s employment or employment
                    relationship, whether the termination is lawful or unlawful.  

		10.2.3 	
Nothing in the Rules or the operation of the Plan forms part of the contract of employment
or employment relationship of an Employee. The rights and obligations of an Employee are
separate from, and are not affected by, the Plan. Participation in the Plan does not
create any right to, or expectation of, continued employment or a continued employment
relationship. 

		10.2.4 	
The grant of Conditional Awards on a particular basis in any year does not create any
right to or expectation of the grant of Conditional Awards on the same basis, or at all,
in any future year. 

		10.2.5 	
No Employee is entitled to participate in the Plan, or be considered for participation in
it, at a particular level or at all. Participation in one operation of the Plan does not
imply any right to participate, or to be considered for participation in any later
operation of the Plan. 

		10.2.6 	
Without prejudice to an Employee’s right to receive any benefit comprised in a
Conditional Award subject to and in accordance with the express terms of the Rules and the
Performance Condition, no Employee has any rights in respect of the exercise or omission
to exercise any discretion, or the making or omission to make any decision, relating to
the Conditional Award. Any and all discretions, decisions or omissions relating to the
Conditional Award may operate to the disadvantage of the Employee, even if this could be
regarded as capricious or unreasonable, or could be regarded as in breach of any implied
term between the Employee and his employer, including any implied duty of trust and
confidence. Any such implied term is excluded and overridden by this Rule10.2. 

	 	10.2.7 	No
Employee has any right to compensation for any loss in relation to the Plan, including:

	 	(i) 	any
loss or reduction of any rights or expectations under the Plan in any
                    circumstances or for any reason (including lawful or unlawful
termination of                     employment or the employment relationship);  

	 	(ii) 	any
exercise of a discretion or a decision taken in relation to a Conditional
                    Award or to the Plan, or any failure to exercise a discretion or take
a                     decision;  

	 	(iii) 	the
operation, suspension, termination or amendment of the Plan.  

		10.2.8 	
Participation in the Plan is permitted only on the basis that the Participant accepts all
the provisions of the Rules, including in particular this Rule 10.2. By participating in
the Plan, an Employee waives all rights under the Plan, other than the right to receive
any benefit subject to and in accordance with the express terms of the Rules and the
Performance Condition, in consideration for, and as a condition of, the grant of a
Conditional Award under the Plan. 

		10.2.9 	
Nothing in this Plan confers any benefit, right or expectation on a person who is not an
Employee. No such third party has any rights under the Contracts (Rights of Third Parties)
Act 1999 to enforce any term of this Plan. This does not affect any other right or remedy
of a third party which may exist. 

		10.2.10 	
Each of the provisions of this Rule 10.2 is entirely separate and independent from each of
the other provisions. If any provision is found to be invalid then it will be deemed never
to have been part of these Rules and to the extent that it is possible to do so, this will
not affect the validity or enforceability of any of the remaining provisions. 

	10.3  	Reimbursement 

	 	
Each
Participating Company will at the request of the Company reimburse the Company for any
costs incurred in connection with the Conditional Awards made to Participants employed by
that Participating Company. 

	10.4  	Rights 

	 	
Where
an award is satisfied in Shares, Participants will be entitled to all rights attaching to
the Shares by reference to a record date on or after the date of transfer. They will not
be entitled to rights before that date. 

	10.5  	Consents 

	 	
All
transfers of Shares will be subject to any necessary consents under any relevant
enactments or regulations for the time being in force in the United Kingdom or elsewhere,
and it will be the individual’s responsibility to comply with any requirements to be
fulfilled in order to obtain or obviate the necessity for any such consent. 

	10.6  	Articles
of Association 

	 	
Any
Shares acquired or to be acquired under this Plan will be subject to the Articles of
Association of the Company from time to time in force. Any ADSs acquired under the Plan
will, in addition, be subject to the terms of the deposit agreement between the Company
and the depository. 

	10.7  	Notices 

	 	
Any
notice or other document which has to be given to an Eligible Employee or Participant
under or in connection with the Plan may be: 

	 	10.7.1 	delivered
or sent by post to him at his home address  according to the records of his  employing
 company;  or 

	 	10.7.2 	sent
by  e-mail  or fax to any  e-mail  address  or fax  number  which  according  to the
 records  of his                  employing company is used by him;

	 	
or
in either case such other address which the Company considers appropriate.  

	 	
Any
notice or other document which has to be given to the Company or other duly appointed
agent under or in connection with the Plan may be delivered or sent by post to it at its
respective registered office (or such other place as the Directors or duly appointed agent
may from time to time decide and notify to Participants) or sent by e-mail or fax to any
e-mail address or fax number notified to the sender. 

	 	
Notices
sent by post will be deemed to have been given on the second day after the date of
posting. However, notices sent by or to a Participant who is working overseas will be
deemed to have been given on the seventh day after the date of posting. 

	 	
Notices
sent by e-mail or fax, in the absence of evidence of non-delivery, will be deemed to have
been received on the day after sending. 

	10.8  	REMCO
and Committee’s decision final and binding 

	 	
The
decision of the Committee and REMCO in connection with any interpretation of the Rules or
in any dispute relating to any matter relating to the Plan will be final and conclusive. 

	10.9  	Administration
of the Plan 

	 	
The
Committee may, from time to time, make or vary regulations for the administration and
operation of the Plan, provided that these are consistent with the Rules. 

	10.10  	Data
protection 

	 	
By
participating in the Plan the Participant consents to the holding and processing of
personal data provided by the Participant to the Company for all purposes relating to the
operation of the Plan. These include, but are not limited to: 

	 	10.10.1 	administering
and maintaining Participant records;

	 	10.10.2 	providing
 information  to trustees of any  employee  benefit  trust,  registrars,  brokers or
third party                  administrators of the Plan;

	 	10.10.3 	providing
information to future purchasers of the Company or the business in which the Participant
works;

		10.10.4 	
transferring information about the Participant to a country or territory outside the
European Economic Area. 

	11  	Amendments
and termination 

	11.1  	REMCO’s
powers of amendment 

	 	
REMCO
may at any time alter, vary or add to the provisions of the Plan in any respect in
relation to the operation of the Plan generally or in respect of any Participant. Such
amendments may apply to existing Conditional Awards. 

	11.2  	Notice 

	 	
As
soon as reasonably practicable after making any alteration or addition, the Committee will
give written notice to any Participant affected by the alteration or addition. 

	11.3  	Termination
of the Plan 

	 	
The
Plan will terminate on [insert the date of the 10th anniversary of Directors’
approval], but REMCO may terminate the Plan at any time before that date. The termination
of the Plan will not affect existing rights of Participants or Conditional Awards, which
have already been made. 

	12  	Governing
law 

	 	
The
laws of England and Wales govern the Plan and all Conditional Awards and their
construction. The Courts of England and Wales have non-exclusive jurisdiction in respect
of disputes arising under or in connection with the Plan or any Conditional Award.Exhibit 4(d)  

Dated 26 May 2004 

IMPERIAL CHEMICAL
INDUSTRIES PLC 

RULES OF THE ICI
EXECUTIVE SHARE 

OPTION PLAN 2004 

	Shareholders' Approval	26 May 2004
	
Expiry Date	26 May 2014
	
Inland Revenue reference	X2276VSCL
	for Schedule 1
	
Inland Revenue approval	20 August 2004

Linklaters 

One Silk Street
London EC2Y 8HQ  

Telephone (44-20) 7456 2000

Facsimile (44-20) 7456 2222 

Ref 01/145/G
Rowlands-Hempe/E Western 

Rules of the ICI
Executive Share Option Plan 2004 

	1  	Definitions 

	1.1  	Meanings
of words used 

	 	
In
these Rules: 

	 	
“Business
Day” means a day on which the London Stock Exchange (or, if relevant and if the
Committee determine, any stock exchange nominated by the Committee on which the Shares are
traded) is open for the transaction of business; 

	 	
“Committee”
means, subject to Rule 8.3, a committee of the board of directors of the Company
consisting only of non-executive directors of the board; 

	 	
“Company” means
Imperial Chemical Industries PLC; 

	 	
“Conditions” means
any conditions imposed under Rule 2.3;  

	 	
“Control” has
the meaning given to it by Section 840 of the Taxes Act;  

	 	
“Date
of Grant” means the date that the Committee set for the grant of an Option;  

	 	
“Eligible
Employee” means any person who:  

	 	(i) 	either
is an employee of a Participating Company, or is an executive director of
               the Company who devotes substantially the whole of his working time to his
               duties; and 

	 	(ii) 	at
the Date of Grant is not within 6 months of any anticipated cessation of
               employment; 

	 	
“ITEPA” means
the Income Tax (Earnings and Pensions) Act 2003;  

	 	
“London
Stock Exchange” means London Stock Exchange plc; 

	 	
“Member
of the Group” means: 

	 	(i)	the
Company; and 

	 	(ii)	its
Subsidiaries from time to time; and 

	 	(iii)	any
other company which is associated with the Company and is so designated by           the
Committee; 

	 	
“Model
Code” means the UK Listing Authority Model Code for transactions in securities by
directors, certain employees and persons connected with them; 

	 	
“Option” means
a right to acquire Shares granted under the Plan which is subject to the Rules;  

	 	
“Optionholder” means
a person holding an Option or his personal representatives;  

	 	
“Option
Period” means a period starting on the Date of Grant of an Option and ending at
the end of the day before the 10th anniversary of the Date of Grant, or such shorter
period as may be specified on the Date of Grant 

	 	
“Option
Price” means the amount payable for each Share on the exercise of an Option
calculated as described in Rule 3; 

1 

	 	
“Participating
Companies” means: 

	 	(i)	the
Company: and 

	 	(ii)	any
Subsidiary, and any other company which in both cases is so designated by           the
Committee; 

	 	
“Plan” means
this plan known as “The lCl Executive Share Option Plan 2004” as changed from
time to time;  

	 	
“Regulatory
Information Service” means a service listed in schedule 12 to the UK Listing
Authority Listing Rules; 

	 	
“Rules” means
these rules of the Plan as changed from time to time;  

	 	
“Shares” means
fully paid ordinary shares in the capital of the Company;  

	 	
“Subsidiary”
means a company which is a subsidiary of the Company within the meaning of Section 736 of
the Companies Act 1985; 

	 	
“Taxes
Act”  means the Income and Corporation Taxes Act 1988; 

	2  	Grant
of Options 

	2.1  	Grant
of Options 

	 	2.1.1	
The Committee may resolve to grant to any Eligible Employee an Option to acquire such
number of Shares as the Committee may determine. The Company will execute a deed on the
grant of an Option.

	 	2.1.2	
Unless the Committee decides otherwise in any particular case, options must not be granted
to an Eligible Employee who has given or received notice of termination of employment with
a Participating Company whether or not such termination is lawful.

	2.2  	Time
when Options may be granted 

	 	         2.2.1 	Options
may only be granted within 42 days starting on any of the following:

	 	(i) 	the
date of adoption of the Plan;  

	 	(ii) 	the
day after the announcement of the Company’s results through a           Regulatory
Information Service for any period;  

	 	(iii) 	any
day on which the Committee resolve that exceptional circumstances exist           which
justify the grant of Options; or  

	 	(iv) 	any
day on which changes to the legislation or regulations affecting share           option
plans are announced, effected or made.  

	 	2.2.2	
If the Committee does not grant any Options due to restrictions imposed by statute, order,
regulation or Government directive, or by any code or restriction adopted by the Company
based on the Model Code, the Committee may grant Options within 42 days alter the lifting
of such restrictions.

	 	2.2.3	
The Committee may only grant Options between the date on which the Company’s
shareholders approve the Plan and the 10th anniversary of that date.

2 

	 	2.2.4	
The Committee may not grant Options on any day if the Option Price would be calculated as
described in Rule 3.1 using any days immediately before the announcement of results.

	2.3  	Conditions 

	 	
When
granting an Option, the Committee will make its exercise conditional on the satisfaction
of certain conditions. The Conditions must he objective and specified at the Date of Grant
and may provide that an Option will lapse if the Conditions are not satisfied. The
Committee may waive or change the Conditions in accordance with their terms or if anything
happens which causes the Committee reasonably to consider that: 

	 	2.3.1	
the Conditions should be amended for the purpose of ensuring the objective criteria
against which performance will then be measured will be a fairer measure of such
performance; or

	 	         2.3.2 	the
Conditions should be waived.

	2.4  	Option
certificates 

	 	2.4.1	
The Committee will send to each Optionholder an option certificate on or as soon as
practicable after the Date of Grant. The certificate will either be the deed referred to
in Rule 2.1 or a statement. The Committee will set the form of the certificate, but the
certificate must be consistent with these Rules.

	 	2.4.2	
If any option certificate is lost or damaged the Committee may replace it on such
conditions as they wish to set.

	2.5  	No
payment 

	 	
Optionholders
are not required to pay for the grant of any Option.  

	2.6  	Disclaimer
of Option 

	 	
Any
Optionholder may disclaim all or part of his Option within 30 days after the Date of Grant
by notice in writing to the Company. If this happens, the Option will be deemed never to
have been granted under the Plan. Optionholders are not required to pay for the
disclaimer. 

	2.7  	Disposal
restrictions 

	 	
An
Optionholder may not transfer, assign or otherwise dispose of an Option or any rights in
respect of it. If an Optionholder tries to transfer, assign or dispose of any such Option
or rights, whether voluntarily or involuntarily, then the relevant Option will immediately
lapse. This Rule 2.7 does not apply to the transmission of an Option on the death of an
Optionholder to his personal representatives. 

	2.8  	Administrative
errors 

	 	
If
the Committee try to grant an Option which is inconsistent with Rule 4 (Individual limit)
or Rule 5 (Plan limits), the Option will be limited and will take effect from the Date of
Grant on a basis consistent with those Rules. 

3 

	3 	Option
Price

	3.1  	Market
Value 

	 	
For
the purposes of this Rule 3 “Market Value” on any particular day means:  

	 	3.1.1	
where Shares of the same class are admitted to the Official List of the UK Listing
Authority and traded on the London Stock Exchange the average of the middle market
quotation on the 3 immediately preceding Business Days. The middle market quotation is
taken from the Daily Official List of the London Stock Exchange;

	 	3.1.2	
where Shares of the same class are traded on a stock exchange other than the London Stock
Exchange and the Option Price is to be set by reference to that exchange Market Value
shall be the average of the closing price as published for that exchange on the 3
immediately preceding Business Days.

	3.2  	Setting
the Price 

	 	
The
Committee will set the Option Price (which may be in sterling or any other currency) and
state it on the Date of Grant. 

	 	
The
Option Price will be: 

	 	         3.2.1 	not
less than the Market Value of a Share on the Date of Grant; and

	 	         3.2.2 	if
the Shares are to be subscribed, not less than the nominal value of a Share.

	4  	Individual
limits 

	4.1  	3
times salary limit for Options 

	 	4.1.1	
Subject to Rule 4.1.2, an Option must not be granted to an Eligible Employee if it would
at the proposed Date of Grant cause the total amount payable on exercise of options that
he has been granted in that financial year under any discretionary share option plan
adopted by the Company to exceed 3 times his annual salary from Members of the Group as at
the Date of Grant

	 	4.1.2	
The limit in this Rule may be exceeded if the Committee determines that exceptional
circumstances make it desirable that Options should be granted in excess of that limit

	5  	Plan
limits 

	 	5.1 	Meaning
of allocate 

	 	
For
the purposes of this Rule “allocate” means granting an option or other right to
acquire unissued Shares, or if there is no such grant, the issue and allotment of Shares. 

	5.2  	10
per cent. 10 year limit 

	 	
The
number of Shares which may be allocated under the Plan on any day must not exceed 10 per
cent. of the ordinary share capital of the Company in issue immediately before that day,
when added to the total number of Shares which have been allocated in the previous 10
years under the Plan and any other employee share plan operated by the Company. 

4 

	5.3  	5
per cent. 10 year limit 

	 	
The
number of Shares which may be allocated under the Plan on any day must not exceed 5 per
cent. of the ordinary share capital of the Company in issue immediately before that day
when added to the total number of Shares which have been allocated in the previous 10
years under the Plan and any other discretionary (executive) share plan adopted by the
Company. 

	5.4  	Exclusions 

	 	
Where
the right to acquire Shares is released or lapses without being exercised, the Shares
concerned are ignored when calculating the limit; in this Rule 5. 

	6  	Variations
In share capital 

	6.1  	Adjustment
of Options 

	 	
If
there is a variation in the equity share capital of the Company, including a
capitalisation or rights issue, sub-division, consolidation or reduction of share capital
or a demerger (in whatever form) or exempt distribution by virtue of Section 213 of the
Taxes Act or other distribution in specie: 

	 	         6.1.1 	the
number of Shares comprised in each Option; or

	 	6.1.2 	the
Option Price: or

	 	6.1.3 	both
may be adjusted in any way (including retrospective adjustments) which the Committee
considers appropriate. 

	6.2  	Nominal
value 

	 	6.2.1	
The Option Price of an Option to acquire existing Shares may be adjusted to a price less
than nominal value.

	 	6.2.2	
The Option Price of an Option to subscribe for Shares may be adjusted to a price less than
nominal value only if the Committee resolves to capitalise the reserves of the Company,
subject to any necessary conditions. This capitalisation will be of an amount equal to the
difference between the adjusted Option Price payable for the Shares to be issued on
exercise, and the nominal value of such Shares on the date of allotment of the Shares. If,
at the time of exercise, the Committee does not resolve to capitalise the reserves of the
Company for this purpose then the adjustment under this Rule 8.2 will be deemed not to
have taken place.

	6.3  	Notice 

	 	
The
Committee may notify Optionholders of any adjustment made under this Rule 6.  

	7  	Exercise
and lapse — general rules 

	7.1  	Exercise 

	 	
Subject
to Rule 7.2 (Lapse) and Rule 8 (Exercise and lapse — exceptions to the general rules)
an Option can only be exercised: 

5 

	 	7.1.1	
on or after the third anniversary of its Date of Grant or such other date as the Committee
may specify on the Date of Grant;

	 	         7.1.2 	to
the extent allowed by any Conditions;

	 	         7.1.3 	if
not  prohibited  by any statute,  regulation  or any code adopted by the Company  based
on the                   Model Code; and

	 	7.1.4	
if not prevented under Rule 8.11 (Mergers and reorganisations) or by a decision of the
Committee under any of Rules 8.4 (Takeovers), 8.5 (Section 429 notice) or 8.6 (Company
reconstructions).

	7.2  	Lapse 

	 	
Unless
Rule 8 applies, an Option will lapse on the earliest of:  

	 	         7.2.1 	the
date the Optionholder ceases to be a director or employee of a Member of the Group;

	 	7.2.2	
unless the Committee decides otherwise the date on which the Optionholder gives or
receives notice of termination of his employment with any Member of the Group whether or
not such termination is lawful. This Rule 7.2.2 will not apply to Options which are
already exercisable on the date notice of termination is given or received;

	 	         7.2.3 	any
date specified in any Conditions;

	 	         7.2.4 	the
expiry of the Option Period; or

	 	7.2.5 	the
date when any circumstance referred to in Rule 2.7 (Disposal restrictions) occurs. 

	 	
For
the purposes of Rules 7.2.1 and 7.2.2 above and Rule 8.1 (Cessation of employment), an
Optionholder will not be treated as ceasing to be a director or employee of a Member of
the Group if he becomes a director or employee of a Member of the Group within 7 days. 

	8  	Exercise
and lapse — exceptions to the general rules 

	 	
This
Rule 8 sets out exceptions to the general rules of exercise and lapse in Rule 7.  

	8.1  	Cessation
of employment 

	 	8.1.1	
If an Optionholder ceases to be a director or an employee of any Member of the Group for
any of the reasons set out below, then his Options will not lapse and, he may exercise
them within 12 months after such cessation (for the period of exercise in the case of
death see rule 8.2). For the avoidance of doubt unless the Committee decides otherwise,
the Conditions must be satisfied before exercise of Options under this Rule 8.1.1.

	 	
The
reasons are: 

	 	(i) 	death,
ill-health, injury, disability as determined by the Committee;  

	 	(ii) 	redundancy;  

	 	(iii) 	retirement
in accordance with the terms of an Optionholder’s contract of           employment;  

6 

	 	(iv) 	early
retirement by agreement with the Optionholder’s employer;  

	 	(v) 	the
Optionholder’s employing company ceasing to be under the Control of the
          Company;  

	 	(vi) 	a
transfer of the undertaking, or the part of the undertaking, in which the
          Optionholder works to a person which is neither under the Control of the
Company           nor a Member of the Group.  

	 	8.1.2	
The Committee may in exceptional circumstances extend the exercise period referred to in
Rule 8.1.1 or allow an Optionholder who ceases to be a director or an employee of any
Member of the Group for any other reason to exercise his Options in full or in part during
any period specified by the Committee and subject to any conditions. Unless the Committee
decides otherwise, the Conditions must be satisfied before exercise of Options under this
Rule 8.1.2.

	 	8.1.3	
The Committee must exercise any discretion provided for in this Rule 8.1 no later than 90
days after cessation of the relevant Optionholder’s employment.

	 	8.1.4	
To the extent that any Option exercisable under this Rule 8.1 is not exercised within the
period specified, it will lapse at the end of that period.

	 	8.1.5	
If an Optionholder ceases to be an employee of any Member of the Group for reasons that
would entitle his employer to dismiss him summarily under his contract of employment, all
his Options shall lapse upon such cessation.

	 	8.1.6	
An Optionholder will not be treated as ceasing to be an employee of a Member of the Group
until he has ceased to be employed by any Member of the Group.

	 	8.1.7	
The Committee’s decision on whether or not the reason for leaving falls within the
reasons in Rule 8.1.1 above shall be final and conclusive.

	8.2  	Death 

	 	
If
an Optionholder dies, the period of exercise is the earlier of two years from his death or
6 months from grant of representation. Nothing in this Rule 8.2 extends the Option Period. 

	8.3  	Committee 

	 	
In
Rules 8.4, 8.5, 8.6, 8.7 and 9.3.4, “Committee” means those people who
were directors of the Company immediately before the relevant event. 

	8.4  	Takeovers 

	 	
This
Rule does not apply if Options are to be replaced in accordance with Rule 8.11 (Mergers
and reorganisations) 

	 	
This
Rule applies where a person (or a group of persons acting in concert) obtains Control of
the Company as a result of making an offer to acquire shares. 

	 	
When
this Rule applies Options may only be exercised to the extent determined by the Committee
having regard to the matters set out in the Conditions. Any exercise must take place
within the 6 month period after the person making the offer has obtained Control of the
Company. 

7 

	 	
The
Options will cease to be exercisable at the end of the 6 month period. Options not
exercised or exchanged (under Rule 9 (Exchange of Options)) will lapse at the end of the
period specified in Rule 9.2 (Exchange). 

	8.5  	Section
429 notice 

	 	
This
Rule does not apply if Options are to be replaced in accordance with Rule 8.11 (Mergers
and reorganisations). 

	 	
This
Rule applies if a person (or a group of persons acting in concert) serves a notice to
acquire Shares under section 429 of the Companies Act 1985 or any other equivalent local
legislation (a “section  429 notice”). Options may only be
exercised to the extent determined by the Committee having regard to the matters set out
in the Conditions, up to the end of the shorter of: 

	 	8.5.1	
the period during which that person is entitled and bound to acquire the Shares to which
the section 429 notice relates; and

	 	8.5.2 	the
period during which that person is entitled to serve a section 429 notice. 

	 	
Options
not exercised or exchanged (under Rule 9 (Exchange of Options)) will lapse at the end of
the period specified in Rule 9.2 (Exchange). 

	8.6  	Company
reconstructions 

	 	
This
Rule does not apply if Options are to be replaced in accordance with Rule 8.11 (Mergers
and reorganisations). 

	 	
This
Rule applies when, under section 425 of the Companies Act 1985 or any other equivalent
local legislation: 

	 	         8.6.1 	a
court sanctions a compromise or arrangement in connection with the acquisition of Shares;
or

	 	         8.6.2 	there
is any other local equivalent to that sanction procedure.

	 	
When
this Rule applies, Options may only be exercised to the extent determined by the Committee
having regard to the matters set out in the Conditions. Such exercise must take place
within 6 months after the date of the sanction. Any Option not so exercised will lapse at
the end of that period. 

	8.7  	Demergers
and other significant distributions 

	 	
This
Rule does not apply if Options are to be replaced in accordance with Rule 8.11 (Mergers
and reorganisations). 

	 	
If
the Committee becomes aware that the Company is or is expected to be affected by any
demerger, dividend in specie, super dividend or other transaction not falling within any
of Rules 8.4 (Takeovers), 8.5 (Section 429 notice) and 8.6 (Company reconstructions)
which, in the opinion of the Committee, would affect the current or future value of any
Option, the Committee, may, acting fairly, reasonably and objectively, in their
discretion, allow some or all Options to be exercised, subject to the satisfaction or
waiver of any Conditions. The Committee will specify the period of exercise of such
Options, whether the Options will lapse at the end of the period and whether exercise is
subject to satisfaction of the Conditions. 

8 

	 	
The
Committee will notify any Optionholder who is affected by the Committee exercising their
discretion under this Rule. 

	8.8  	Winding-up 

	 	
This
Rule does not apply if Options are to be replaced in accordance with Rule 8.11 (Mergers
and reorganisations). 

	 	8.8.1	
If notice is duly given of a meeting to consider a resolution for the voluntary winding-up
of the Company, Options may be exercised, subject to the satisfaction or waiver of any
Conditions until the commencement of the winding-up within the meaning of the! Insolvency
Act 1986 (but the exercise of any Option in these circumstances will be of no effect if
the resolution is not passed). Options not exercised or exchanged (under Rule 9 (Exchange
of Options)) will lapse at the end of the period specified in Rule 9.2 (Exchange).

	 	8.8.2	
If the Company is wound-up by the court, Options may be exercised, subject to the
satisfaction or waiver of any Conditions within 2 months after the date of the winding-up
order. However, the liquidator or the court (if appropriate) must authorise the issue or
transfer of Shares after such exercise, and the Optionholder must apply for this authority
and pay his application costs. Any Options not exercised during the 2-month period will
lapse at the end of the period.

	8.9  	Administration 

	 	
This
Rule does not apply if Options are to be replaced in accordance with Rule 8.11 (Mergers
and reorganisations). 

	 	
If
an administration order is made in relation to the Company, Optionholders may exercise
their Options, subject to the satisfaction or waiver of any Conditions within 6 weeks
after the date of the administration order. However, the administrator or the court must
authorise the issue or transfer of Shares after such exercise. Any Options not exercised
by the end of the 6-week period will lapse at that time only if the Committee has given
written notice to that effect to the Optionholders during the 6-week period. 

	8.10  	Voluntary
arrangement 

	 	
This
Rule does not apply if Options are to be replaced in accordance with Rule 8.11 (Mergers
and reorganisations). 

	 	
If
a voluntary arrangement is proposed in relation to the Company under Part I of the
Insolvency Act 1986, Optionholders may exercise their Options, subject to the satisfaction
or waiver of any Conditions within 14 days after the date of sending of any notices of
meeting called under Section 3 of the Insolvency Act 1988 in relation to such proposal.
Any Options not exercised by the end of the 14 day period will lapse at that time only if
the Committee has given written notice to that effect to the Optionholders on the date
that notices of the meeting were sent. 

	8.11  	Mergers
and reorganisatlons 

	 	
If,
as a result of events specified in Rules 8.4 to 8.6 a company (the “Acquiring
Company”) obtains Control of the Company and: 

9 

	 	8.11.1 	the
shareholders of the Acquiring Company, immediately after it has obtained Control, are
substantially the same as the shareholders of the Company before then; or

	 	8.11.2 	the
obtaining of Control is pursuant to a merger with the Company; and

	 	8.11.3 	the
Company and the Acquiring Company consent to the replacement of Options under this Rule
8.11;

	 	
then
options will not become exercisable.  Instead all rights under the Plan will be replaced
in accordance with Rule 9.3. 

	8.12  	Loss
of ownership 

	 	
Where
the Optionholder is deprived of the legal or beneficial ownership of the Option by
operation of law, or does anything or omits to do anything which causes him to be so
deprived or becomes bankrupt, all his Options will lapse. 

	8.13  	Overseas
transfer 

	 	
If
an Optionholder is transferred to work in another country, and, as a result of that
transfer, the Optionholder either: 

	 	8.13.1	
suffers a tax disadvantage in relation to his Options (this being shown to the
satisfaction of the Committee); or

	 	8.13.2	
becomes subject to restrictions on his ability to exercise his Options or to hold or deal
in the Shares or the proceeds of the sale of the Shares acquired on exercise because of
the security laws or exchange control laws of the country to which he is transferred

	 	
then,
provided the Optionholder continues to hold an office or employment with a Member of the
Group, the Committee may permit the Optionholder to exercise the Option during the period
starting 3 months before and ending 3 months after the transfer takes place. Unless the
Committee decides otherwise, the Conditions must be satisfied before exercise of Options
under this Rule 8.13. If he does not exercise his Options, following this Rule, the usual
exercise Rules will apply to them at the appropriate times. 

	8.14  	Priority 

	 	
If
there is any conflict between any of the provisions of Rules 7 and 8, the provision which
results in the shortest exercise period of the Option will prevail. 

	9  	Exchange
of Options 

	9.1  	Application 

        This
Rule 9 applies to all Options if any of the following occur: 

	 	9.1.1	
a person (or a group of persons acting in concert) has obtained Control of the Company as
a result of making an offer to acquire shares;

	 	9.1.2	
a court sanctions a scheme of arrangement under Section 425 Companies Act 1985 (or
equivalent local legislation) in connection with the acquisition of Shares or there is a
local equivalent to that sanction procedure;

10 

	 	9.1.3	
any person becomes entitled or bound to acquire Shares under Sections 428 and 429
Companies Act 1985 (or equivalent legislation);

	 	         9.1.4 	a
resolution is passed for the voluntary winding-up of the Company or;

	 	9.1.5	the
Company and the Acquiring Company consent to the replacement of Options in accordance
with Rule 8.11 (Mergers and reorganisations).

	9.2  	Exchange 

	 	
If
this Rule 9 applies, Options may be exchanged during the period of 6 months after the
relevant event and with the agreement of the company offering the exchange. 

	9.3  	Exchange
terms 

	 	
Where
an Option is to be exchanged the Optionholder will be granted a new option to replace it.  

	 	
Where
an Optionholder is granted a new option then:  

	 	9.3.1	
the new option will be in respect of shares in any body corporate determined by the
company offering the exchange;

	 	         9.3.2 	the
new option will be equivalent to the Option that was exchanged;

	 	9.3.3	
the new option will be treated as having been acquired at the same time as the Option that
was exchanged and will be exercisable in the same manner and at the same time;

	 	9.3.4	
the new option will be subject to the Rules as they last had effect in relation to the
Option that was exchanged. The Committee (as defined in Rule 8.3) will determine whether
or not the exercise of any new option will be subject to any performance conditions; and

	 	9.3.5	
with effect from the exchange, the Rules will be construed in relation to the new option
as if references to Shares were references to the shares over which the new option is
granted and references to the Company were references to the body corporate determined
under Rule 9.3.1.

	10  	Exercise
of Options 

	10.1  	Exercise 

	 	
An
Optionholder can exercise his Option validly only in the way described in, and subject to,
this Rule 10. 

	10.2  	Part
exercise 

	 	10.2.1	
An Option may be exercised in respect of all the Shares under the Option or only some of
those Shares. However, Options must be exercised over at least 1,000 Shares each and may
be exercised only in multiples of 1,000 Shares. These restrictions will not apply where an
Option is exercised for the maximum number of Shares permissible at the time.

	 	10.2.2	
If an Option is exercised in part, and the balance remains exercisable, the Committee must
on the surrender of the relevant certificate issue a balance certificate.

11 

	10.3  	Manner
of exercise 

	 	
Options
must be exercised by notice in writing in a form specified by the Company and delivered to
the Company or other including a duly appointed agent or by electronic means approved by
the Company. The notice of exercise of the Option must be completed, signed (in manuscript
or in any other form that may be specified by the Company) by the Optionholder or by his
appointed agent, and must be accompanied by: 

	 	         10.3.1 	the
relevant option certificate (if required by the Company); and

	 	10.3.2	
correct payment in full of the Option Price for the number of Shares being acquired or
details of arrangements agreed between the Optionholder and the Company made for the
payment of the Option Price for the number of Shares being acquired;

	 	10.3.3	
if required by the Company, a declaration as to his nationality and/or residence and any
other information which the Committee may reasonably request; and

	 	10.3.4	
unless the Company decides otherwise, in the case of an exercise by an optionholder’s
personal representatives under Rule 8.2, an office copy of a valid UK grant of probate.

	 	
Subject
to Rule 10.4 (Delay in exercise), in this Rule 10, the “Option Exercise
Date” will be the date of receipt by the Company or other duly appointed agent of
the documents and, if appropriate, the payment referred to in Rule 10.3. 

	10.4  	Delay
In exercise 

	 	
The
Option Exercise Date may be delayed until the later of:  

	 	10.4.1	
the date on which the Committee either decides that any Condition to which the Option is
subject has been satisfied or waives that Condition. The Committee must make a decision
about the satisfaction or waiver of the Conditions within 14 days of receipt by the
Company or other duly appointed agent of the documents and, if appropriate, the payment;
and

	 	10.4.2	
if any statute, regulation or code adopted by the Company based on the Model Code,
prohibits the exercise of Options, the date when the Optionholder is permitted to exercise
an Option.

	10.5  	Issue
or transfer 

	 	
Subject
to Rule 10.7: 

	 	10.5.1	
Shares to be issued following the exercise of an Option will be issued within 30 days of
the Option Exercise Date.

	 	10.5.2	
If Shares are to be transferred following the exercise of an Option, the Committee will
procure this transfer within 30 days of the Option Exercise Date.

	10.6  	Rights 

	 	10.6.1	
Shares issued on the exercise of an Option will rank equally in all respects with the
Shares in issue on the date of allotment. They will not rank for any rights attaching to
Shares by reference to a record date preceding the date of allotment.

12 

	 	10.6.2	
Where Shares are to be transferred on the exercise of an Option, Optionholders will be
entitled to all rights attaching to the Shares by reference to a record date on or after
the transfer date. They will not be entitled to rights before that date.

	10.7  	Consents 

	 	
All
allotments, issues and transfers of Shares will be subject to any necessary consents under
any relevant enactments or regulations for the time being in force in the United Kingdom
or elsewhere. The Optionholder will be responsible for complying with any requirements he
needs to fulfil in order to obtain or avoid the necessity for any such consent. 

	10.8  	Articles
of association 

	 	
Any
Shares acquired on the exercise of Options are subject to the articles of association of
the Company from time to time in force. 

	10.9  	Listing 

	 	
If
and so long as the Shares are listed on the Official List of the UK Listing Authority and
traded on the London Stock Exchange, the Company will apply for listing of any Shares
issued under the Plan as soon as practicable after their allotment. 

	10.10  	Cash
alternative 

	 	
In
exceptional circumstances, the Committee may in their discretion determine not to procure
the transfer or issue of Shares to an Optionholder who exercises his Option, but instead
to pay to him (subject to the withholding provisions in Rule 11.8) a cash amount. This
cash amount (“Gain”) must be equal to the amount by which the market
value of the Shares in respect of which the Option is exercised exceeds the Option Price.
Alternatively, the Committee may procure the transfer of Shares to the value of the Gain
or apply that amount in the issue of Shares. Where the Optionholder is to be paid the Gain
in cash or Shares and the Committee so determines, the Optionholder need not pay the
Option Price or, if he has paid It, the Company will repay the Option Price to him. 

	 	
For
the purposes of this Rule, market values means:  

	 	10.10.1 	
the middle market quotation of a Share as derived from the Daily Official List of the
London Stock Exchange on the Option Exercise Date (or the next Business Day if the Option
Exercise Date is not a Business Day); or 

	 	10.10.2 	
where Shares of the same class are traded on any other stock exchange, the closing price
on the Option Exercise Date (or the next Business Day if the Option Exercise Date is not a
Business Day); or 

	 	10.10.3 	
where Shares of the same class are not traded on a stock exchange, the value on the Option
Exercise Date as determined by the Committee. 

	11  	General 

	11.1  	Notices 

	 	
Any
notice or other document which has to be given to an Eligible Employee or Optionholder
under or in connection with the Plan may be: 

13 

	 	11.1.1	
delivered or sent by post to him at his home address according to the records of his
employing company; or

	 	         11.1.2 	sent
by e-mail or fax to any e-mail  address or fax number which  according to the records of
his                   employing company is used by him;

	 	
or
in either case such other address which the Company considers appropriate.  

	 	
Any
notice or other document which has to be given to the Company or other duly appointed
agent under or in connection with the Plan may be delivered or sent by post to it at its
respective registered office (or such other place as the Committee or duly appointed agent
may from time to time decide and notify to Optionholders) or, if approved by the Company,
sent by e-mail or fax to any e-mail address or fax number notified to the sender. 

	 	
Notices
sent by post will be deemed to have been given on the second day after the date of
posting. However, notices sent by or to an Optionholder who is working overseas will be
deemed to have been given on the seventh day after the date of posting. 

	 	
Notices
sent by e-mail or fax, in the absence of evidence of non-delivery, will be deemed to have
been received on the day after sending. 

	11.2  	Documents
sent to shareholders 

	 	
The
Company may send to Optionholders copies of any documents or notices normally sent to the
holders of its Shares at or around the same time as issuing them to the holders of its
Shares. 

	11.3  	Committee
decisions final and binding 

	 	
The
decision of the Committee on the interpretation of the Rules or in any dispute relating to
an Option or matter relating to the Plan will be final and conclusive. 

	11.4  	Costs 

	 	
The
Company will pay the costs of introducing and administering the Plan. Each Participating
Company will if requested by the Company reimburse the Company for any costs incurred in
connection with the grant of Options to, or exercise of Options by, employees of that
Participating Company. 

	11.5  	Regulations 

	 	
The
Committee has the power from time to time to make or vary regulations for the
administration and operation of the Plan but these must be consistent with the Rules. 

	11.6  	Terms
of employment 

	 	11.6.1 	For
the purposes of this Rule 11.6, ‘Employee means any Optionholder, any Eligible
Employee or any other person. 

	 	11.6.2 	This
Rule 11.6 applies:

	 	(i) 	whether
the Company has full discretion in the operation of the Plan, or whether           the
Company could be regarded as being subject to any obligations in the           operation
of the Plan;  

	 	(ii) 	during
an Employee’s employment or employment relationship; and  

14 

	 	(iii) 	after
the termination of an Employee’s employment or employment           relationship,
whether the termination is lawful or unlawful.  

	 	11.6.3 	
Nothing in the Rules or the operation of the Plan forms part of the contract of employment
or employment relationship of an Employee. The rights and obligations of an Employee are
separate from, and are not affected by, the Plan. Participation in the Plan does not
create any right to, or expectation of, continued employment or a continued employment
relationship. 

	 	11.6.4 	
The grant of Options on a particular basis in any year does not create any right to or
expectation of the grant of Options on the same basis, or at all, in any future year. 

	 	11.6.5 	No
Employee is entitled to participate in the Plan, or be considered for participation in
it, at a particular level or at all. Participation in one operation of the Plan does not
imply any right to participate, or to be considered for participation in any later
operation of the Plan. 

	 	11.6.6 	
Without prejudice to an Employee’s right to exercise an Option subject to and in
accordance with the express terms of the Rules and the Conditions, no Employee has any
rights in respect of the exercise or omission to exercise any discretion, or the making or
omission to make any decision, relating to the Option. Any and all discretions, decisions
or omissions relating to the Option may operate to the disadvantage of the Employee, even
If this could be regarded as capricious or unreasonable, or could be regarded as in breach
of any implied term between the Employee and his employer, including any implied duty of
trust and confidence. Any such implied term is excluded and overridden by this Rule 11.6. 

	 	11.6.7 	No
Employee has any right to compensation for any loss in relation to the Plan, including: 

	 	(i) 	any
loss or reduction of any rights or expectations under the Plan in any
          circumstances or for any reason (including lawful or unlawful termination of
          employment or the employment relationship);  

	 	(ii) 	any
exercise of a discretion or a decision taken in relation to an Option or to           the
Plan, or any failure to exercise a discretion or take a decision;  

	 	(iii)	the
operation, suspension, termination or amendment of the Plan.  

	 	11.6.8 	
Participation in the Plan is permitted only on the basis that the Participant accepts all
the provisions of the Rules, including in particular this Rule 11.6. By participating in
the Plan, an Employee waives all rights under the Plan, other than the right to exercise
an Option subject to and in accordance with the express terms of the Rules and the
Conditions, in consideration for, and as a condition of, the grant of an Option under the
Plan. 

	 	11.6.9 	
Nothing in this Plan confers any benefit, right or expectation on a person who is not an
Employee. No such third party has any rights under the Contracts (Rights of Third Parties)
Act 1999 to enforce any term of this Plan. This does not affect any other right or remedy
of a third party which may exist. 

	 	11.6.10 	
Each of the provisions of this Rule 11.6 is entirely separate and independent from each of
the other provisions. If any provision is found to be invalid then it will be deemed never
to have been part of these Rules and to the extent that it is possible to do so, this wilI
not affect the validity or enforceability of any of the remaining provisions. 

15 

	11.7  	Employee
trust 

	 	
The
Company and any Subsidiary of the Company may provide money to the trustee of any trust or
any other person to enable them or him to acquire shares to be held for the purposes of
the Plan, or enter into any guarantee or indemnity for those purposes, to the extent
permitted by Section 153 of the Companies Act 19B5. 

	11.8  	Withholding 

	 	
The
Company, any employing company or trustee of any employee benefit trust may withhold such
an amount and make such arrangements as it considers necessary to meet any liability to
taxation or social security contributions in respect of Options. These arrangements may
include the sale or reduction in number of any shares on behalf of an Optionholder unless
the Optionholder discharges the liability himself. 

	11.9  	Data
protection 

	 	
By
participating in the Plan the Optionholder consents to the holding and processing of
personal data provided by the Optionholder to the Company for all purposes relating to the
operation of the Plan. These include, but are not limited to: 

	 	         11.9.1 	administering
and maintaining Optionholder records;

	 	         11.9.2 	providing
 information to trustees of any employee  benefit trust,  registrars,  brokers or third
                  party administrators of the Plan;

	 	         11.9.3 	providing
 information  to  future  purchasers  of the  Company  or the  business  in  which  the
                  Optionholder works;

	 	11.9.4	
transferring information about the Optionholder to a country or territory outside the
European Economic Area.

	12  	Changing
the Plan 

	12.1  	Committee
powers 

	 	
Except
as described in the rest of this Rule 12, the Committee may at any time change the Plan in
any way. 

	12.2  	Shareholder
approval 

	 	12.2.1	
Except as described in Rule 12.2.2, the Company in general meeting must approve in advance
by ordinary resolution any proposed change to the Rules to the advantage of present or
future Optionholders, which relates to the following:

	 	(i) 	the
persons to or for whom Shares may be provided under the Plan;  

	 	(ii) 	the
limitations on the number of Shares which may be issued under the Plan;  

	 	(iii) 	the
individual limits in Rule 4;  

	 	(iv) 	the
determination of the Option Price;  

16 

	 	(v) 	any
rights attaching to the Options and the Shares;  

	 	(vi) 	the
rights of Optionholders in the event of a capitalisation issue, rights           issue,
sub-division or consolidation of shares or reduction or any other           variation of
capital of the Company;  

	 	(vii) 	the
terms of this Rule 12.2.1.  

	 	12.2.2	
The Committee can change the Plan and need not obtain the approval of the Company in
general meeting for any minor changes:

	 	(i) 	to
benefit the administration of the Plan;  

	 	(ii) 	to
comply with or take account of the provisions of any proposed or existing
          legislation;  

	 	(iii) 	to
take account of any changes to legislation; or  

	 	(iv) 	to
obtain or maintain favourable tax, exchange control or regulatory treatment           of
the Company, any Subsidiary or any present or future Optionholder.  

	 	12.2.3	
The Company may establish further plans based on the Rules but modified to take account of
local tax, exchange control or securities laws in non-UK territories.

	12.3  	Notice 

	 	
The
Committee may give written notice of any changes made to any Optionholder affected.  

	12.4  	Termination
of the Plan 

	 	
The
Plan will terminate on 26 May 2014, but the Committee may terminate the Plan at any time
before that date. However, Options granted before such termination will continue to be
valid and exercisable as described in these Rules. 

	13  	Governing
law and jurisdiction 

	 	
The
laws of England and Wales govern the Plan and all Options and their construction. The
Courts of England and Wales have non-exclusive jurisdiction in respect of disputes arising
under or in connection with the Plan or any Option. 

17 

Schedule 1
The ICI
Executive Approved Share Option Plan 2004  

This Schedule 1 contains the rules of
the ICI Executive Approved Share Option Plan 2004 (“the Approved Plan”). The
Rules of ICI Executive Share Option Plan 2004 (excluding Schedules 2 and 3) (the
“Plan”) as amended by this Schedule I apply to Options granted under the
Approved Plan. 

	1  	Definitions 

	 	
Words
used in the Approved Plan have the same meaning as in the Plan unless amended as stated
below:  

	 	
“Eligible
Employee” does not include anyone who is:  

	 	(i) 	excluded
from participation because of paragraph 9 of Schedule 4 to ITEPA           (material
interests provisions); or 

	 	(ii) 	a
director who is required to work less than 25 hours a week (excluding meal
          breaks) for the Company. 

	 	
“Participating
Companies” means:  

	 	(i) 	the
Company; and 

	 	(ii) 	any
Subsidiary, a jointly-owned company (within the meaning of paragraph 34 of
               Schedule 4 to ITEPA) of which the Company is a joint owner, and any other
               company which is permitted by the Inland Revenue to participate and which
in all                cases is so designated by the Committee; 

	 	
“Shares” must
satisfy paragraphs 16 to 20 of Schedule 4 of ITEPA;  

	 	
“Specified
Age” for the purpose of paragraph 35A of Schedule 4 to ITEPA is 55;  

	 	
“Subsidiary” must
be under the Control of the Company.  

	2  	Shares 

	 	
The
following new Rule is added:  

	 	
“If
any Shares which are subject to an Option cease to satisfy paragraphs 16 to 20 of Schedule
4 to ITEPA and the Committee notify the Inland Revenue that they wish the Approved Plan to
be disapproved then the definition of “Shares” in Rule 1.1 is changed
automatically to “fully paid ordinary shares in the capital of the
Company”.” 

	3  	Option
Price 

	 	
The
following replaces Rule 3.1.2: 

	 	
“Where
Shares of the same class are traded on a stock exchange other than the London Stock
Exchange and the Option Price is to be set by reference to that exchange Market Value
shall be the average of the closing price as published for that exchange on the 3
immediately preceding Business Days, and agreed in advance with Inland Revenue Shares
Valuation.” 

	4  	Conditions 

	 	
The
following is added at the end of Rule 2.3:  

18 

	 	
“The
amended Conditions should not be more difficult to satisfy than the original Conditions.” 

	5  	Revenue
limit 

	 	
The
following new Rule is added:  

	 	
“The
Committee must not grant an Option to an Eligible Employee which would cause the aggregate
market value of: 

	 	(i) 	the
Shares subject to that Option; and 

	 	(ii) 	the
Shares which he may acquire on exercising his Options under the Approved
               Plan; and 

	 	(iii) 	the
shares which he may acquire on exercising his options under any other Inland
               Revenue approved discretionary scheme established by the Company or by any
of                its associated companies (as defined in paragraph 35 of Schedule 4 to
ITEPA) 

	 	
to
exceed the amount permitted under paragraph 6 of Schedule 4 to ITEPA (currently
£30,000). For the purposes of this paragraph, market value is calculated as at the
date of grant of the options as described in the relevant plan rules.” 

	6  	Adjustment
of Options 

	 	
The
following rule replaces Rule 6.1:  

	 	
“6.1
Adjustment of Options

	 	
If
there Is a variation in the equity share capital of the Company, including a
capitalisation or rights issue, sub-division, consolidation or reduction of share capital: 

	 	
6.1.1
   the number of Shares comprised in each Option; and 

	 	
6.1.2
the Option Price 

	 	
may
be adjusted in any way (including retrospective amendments) that the Committee considers
appropriate. However, no adjustment of Options may be made under this Rule 6 without and
to the extent of the prior approval of the Inland Revenue.” 

	7  	Material
Interest 

	 	
The
following new Rule is added:  

	 	
“An
Optionholder may not exercise an Option while he is excluded from participation in the
Approved Plan under paragraph 9 of Schedule 4 to ITEPA (material interest
provisions).” 

	8  	Death 

	8.1  	The
following rule replaces Rule 8.2: 

	 	8.2 	“Death

	 	
If
an Optionholder dies, his Options may be exercised, irrespective of the satisfaction of
any Conditions, by his personal representatives up to one year from his death. To the
extent that any Option exercisable under this Rule 8.2 is not so exercised, it will lapse.” 

19 

	9  	Exercise
and lapse — exceptions to the general rule 

	 	
The
following shall replace Rule 8.1.2:  

	 	8.1.2	
The Committee may allow an Optionholder who ceases to be a director or an employee of any
Member of the Group for any other reason to exercise his Options in full or in part during
any period specified by the Committee. Unless the Committee decides otherwise the
Conditions must be satisfied.”

	 	
The
following new rule is added:  

	 	
“8.15
Committee discretion 

	 	
The
Committee will exercise all discretions under Rules 7 and 8 fairly and reasonably?  

	10  	Exchange
of Options 

	 	
The
following rule replaces Rule 9:  

	 	9 	“Exchange
of Options

	 	9.1 	Application

	 	
This
Rule applies if a company:  

	 	                  9.1.1 	obtains
Control of the Company as a result of making a general offer to acquire: 

	 	(i) 	the
whole of the issued ordinary share capital of the Company (other than that
               which is already owned by it and its subsidiary or holding company) made
on a                condition such that, if satisfied, the Acquiring Company will have
Control of                the Company or  

	 	(ii) 	all
the Shares (or those Shares not already owned by the Acquiring Company or
               its subsidiary or holding company); or  

	 	9.1.2 	obtains
Control of the Company under a compromise or arrangement sanctioned by the court under
Section 425 of the Companies Act 1985; or  

	 	9.1.3 	becomes
bound or entitled to acquire Shares under Sections 428 to 430F of the Companies Act 1985.  

	 	9.2 	Exchange

	 	
If
this Rule 9 applies, Options may be exchanged within the period referred to in paragraph
26(3) of Schedule 4 to ITEPA and with the agreement of the company offering the exchange. 

	 	9.3 	Exchange
terms

	 	
Where
an Option is to be exchanged the Optionholder will be granted a new option to replace it.  

20 

	 	
Where
an Optionholder is granted a new option then:  

	 	9.3.1 	the
new Option will be in respect of shares in any body corporate determined by the company
offering the exchange as long as they satisfy the conditions of paragraph 27(4) of
Schedule 4 to ITEPA;  

	 	                  9.3.2 	the
new option will be equivalent to the Option that was exchanged; 

	 	9.3.3 	the
new option will be treated as having been acquired at the same time as the Option that
was exchanged and will be exercisable in the same manner and at the same time;  

	 	9.3.4 	the
new option will be subject to the Rules as they last had effect in relation to the Option
that was exchanged. The Committee (as defined in Rule 8.3) will determine whether or not
the exercise of any new option will be subject to any performance conditions; and  

	 	9.3.5 	with
effect from exchange, the Rules will be construed in relation to the new option as if
references to Shares are references to the shares over which the new option is granted
and references to the Company are references to the body corporate determined under Rule
9.3.1.” 

	11  	Cash
alternative 

	 	
Rule
10.10 is deleted.

	12  	Withholding 

	 	
The
following replaces Rule 11.8: 

	 	
“Unless
an Optionholder discharges any liability that may arise himself, the Company, any
employing company or trustee of any employee benefit trust for which shares are provided
may make the necessary arrangements to withhold an amount sufficient to meet any ability
to taxation or social security contributions in respect of the exercise of Options for
when the Company is obliged to account on behalf of an Optionholder. These arrangements
may include the sale of Shares on behalf of an Optionholder. 

	13  	Changing
the Plan 

	 	
The
following new Rule is added:  

	 	
“The
Committee can change the Approved Plan and need not obtain the approval of the Company in
general meeting for any minor changes which are necessary or desirable in order to
maintain Inland Revenue approval of the Approved Plan under schedule 4 to ITEPA or any
other enactment.” 

	14  	Revenue
approval 

	 	
The
following new Rule is added:  

	 	
“If
the approved status of the Approved Plan is to be maintained, any change to a key feature
of the Approved Plan made after it has been approved under Schedule 4 to ITEPA will have
effect from the later of the date the change is approved by the Inland Revenue and the
date the Committee resolves to approve the amendment. The Committee will inform the
Inland Revenue if the approved status of the Approved Plan is not to be  

21 

	 	
maintained.
A key feature is any provision necessary to meet the requirements of Schedule 4 to ITEPA.” 

22 

Schedule 2
ICI Share
Appreciation Rights Plan (US) 2004  

This Schedule 2 comprises the ICI
Share Appreciation Rights Plan (US) 2004 (the US SAR Plan). The rules of the ICI Executive
Share Option Plan 2004 (excluding any Schedules other than this Schedule 2) as amended by
this Schedule 2 apply to share appreciation rights (“SARs”) granted under the US
SAR Plan. Under the US SAR Plan, the Committee may make grants which will be designated as
SARs at the Date of Grant. 

	1  	Definitions 

	 	
Capitalized
words used in this US SAR Plan have the same meaning as in the ICI Executive Share Option
Plan 2004, unless amended or added as stated below 

	 	
“Business
Day” means a day on which the New York Stock Exchange (NYSE) is open for the
transaction of business. 

	 	
“Code” means
the United States Internal Revenue Code of 1986, as amended.  

	 	
“Eligible
Employee” means any person who:  

	 	(i) 	Either
is selected by the Committee or is an executive director of the Company
               who devotes substantially the whole of his working time to his duties; and 

	 	(ii) 	Is
an employee of a U.S. Subsidiary, which for the avoidance of doubt includes
               an employee of a U.S. Subsidiary seconded to a non U.S. Subsidiary; and 

	 	(iii) 	At
the Date of Grant is not within 6 months of any anticipated cessation of
               employment with all Members of the Group. 

	 	
“Gain”
means the amount, if any, that the NYSE closing price of a Share on the Option Exercise
Date exceeds the Option Price. 

	 	
“NYSE” means
the New York Stock Exchange. 

	 	
“Option”
means an SAR. References to an option in the Option Plan and this Schedule 2 shall be
deemed a reference to a SAR. 

	 	
“Option
Plan” means the lCl Executive Share Option Plan 2004.  

	 	
“Option
Exercise Date” means the date the SAR is exercised by delivering the required
notice by the time prescribed by the appointed agent. If notice is delivered after the
prescribed time or on a day that is not a Business Day, the Option Exercise Date shall be
the next Business Day. 

	 	
“Option
Price” means the amount determined under Rule 3.2 of the Option Plan for a Share
represented by an SAR on the Date of Grant 

	 	
“SAR” means
a share appreciation right which is the right to the Gain.  

	 	
“Share”
means an American Depositary Share of the Company; provided that for purposes of applying
the Plan Limits of Rule 5 of the Option Plan, one Share is the equivalent of four fully
paid ordinary shares of the Company. 

	2  	Market
Value 

	 	
The
following replaces Rule 3.1: 

	 	3.1 	Market
Value

23 

	 	
For
the purposes of this Rule 3, Market Value means the average of the NYSE closing prices for
the three (3) Business Days immediately preceding the Date of Grant. 

	3  	Setting
the Price 

	 	
In
setting the Option Price under Rule 3.2, the Committee will use U.S. dollars.  

	4  	Individual
limits 

	 	
The
following should be substituted for Rule 4.  

	4.1  	6
times salary limit for Options 

	 	4.1.1	
Subject to Rule 4.1.2, an Option must not be granted to an Eligible Employee if it would
at the proposed Date of Grant cause the total amount payable on exercise of options that
he has been granted in that financial year under any discretionary share option plan
adopted by the Company to exceed 6 times his annual salary from Members of the Group as at
the Date of Grant.

	 	4.1.2	
The limit in this Rule may be exceeded if the Committee determines that exceptional
circumstances make it desirable that Options should be granted in excess of that limit.

	5  	10
per cent, 10 year limit 

	 	
A
new Rule 5.2.1 is added as follows:  

	 	5.2.1	
For purposes of Rule 5.2, the following plans are not employee share plans operated by the
Company:

	 	(i) 	North
American Employee Stock Purchase Plan of the ICI Group;  

	 	(ii) 	Any
Code section 401(k) plan qualified under Section 401(a) of the Code to           include,
without limitation, the Retirement Savings Plan of the ICI Group;  

	 	(iii) 	Restricted
Stock Performance Plan of ICI American Holdings Inc.;  

	 	(iv) 	Stock
Appreciation Rights Plan of ICI American Holdings Inc.; and  

	 	(v) 	Senior
Staff Share Appreciation Rights Plan of ICI American Holdings Inc.  

	6  	5
percent, 10 year limit 

	 	
A
new Rule 5.3.1 is added as follows:  

	 	5.3.1	
For purposes of Rule 5.2, the following plans are not discretionary (executive) share
plans operated by the Company:

	 	(i) 	North
American Employee Stock Purchase Plan of the ICI Group;  

	 	(ii) 	Any
Code section 401(k) plan qualified under Section 401(a) of the Code to           include,
without limitation, the Retirement Savings Plan of the lCl Group;  

	 	(iii) 	Restricted
Stock Performance Plan of ICI American Holdings Inc.;  

	 	(iv) 	Stock
Appreciation Rights Plan of lCI American Holdings Inc.; and  

	 	(v) 	Senior
Staff Share Appreciation Rights Plan of ICI American Holdings Inc.  

24 

	7  	Cessation
of Employment 

	 	
The
following replaces clause (i) of Rule 8.1.1:  

	 	(i) 	death,
ill health, injury or disability as determined by the Committee;                provided,
that if the Optionholder is determined to be disabled under the long                term
disability plan of his or her employer, the Optionholder shall be deemed
               disabled without further action by the Committee; 

	 	
The
following replaces clause (iii) of Rule 8.1.1:  

	 	(iii) 	retirement
on or after(A) the later of age 65 or the completion of 5 years of                service
with one or more Members of the Group or (B) such earlier retirement                date
set out in a contract of employment between the Optionholder and a Member
               of the Group. 

	 	
The
following replaces clause (iv) of Rule 8.1.1:  

	 	(v)	early
retirement by agreement with the Company 

	8  	Exercise 

	 	
Rules
10.1 through 10.5 are deleted and replaced with the following:  

	 	10 	Exercise

	 	10.1 	Part
Exercise 

	 	10.1.1 	
An Option may be exercised in respect of all SARs under the Option or only some of the
SARs. Option must be exercised over at least 400 SARs each and may be exercised only in
multiples of 400 SARs. These restrictions will not apply where an Option is exercised for
the maximum number of SARs permissible at the time. 

	 	10.1.2 	If
an Option is exercised in part, and the balance remains exercisable, the Optionholder
will surrender his or her certificate and a balance certificate will be issued.  

	 	10.2 	Manner
of Exercise

	 	
Options
must be exercised by notice in writing in a form (to include facsimile or other electronic
means) specified by the Company and delivered to the Company or duly appointed agent of
the Company. 

	 	10.3 	Delay
In Exercise

	 	
If
any statute, regulation or code adopted by the Company based on the Model Code prohibits
the exercise of Options, the Option Exercise Date will be delayed until the date the
prohibition ceases to apply. 

	 	10.4 	Shares
Delivered At Exercise

	 	
Upon
exercise of SARs under an Option, the Gain will be determined. The Gain will then be
divided by the Option Exercise Price to determine the number of Shares that would be
delivered to the Optionholder prior to any tax withholding. The gross number of Shares
will be multiplied by the applicable combined income and employment tax withholding rate
to determine the “Tax Withholding Shares.” The product of that number of Shares
and the Option Exercise Price will be directly deposited by the Subsidiary employing the
Optionholder with the applicable taxing authority. The gross number of Shares reduced by
the Tax Withholding Shares equals the Net Shares. The Subsidiary employing the
Optionholder will then deliver the Net Shares to the Optionholder. Any fractional Net
Share will be paid in cash. 

25 

	 	10.5 	Cash
Alternative

	 	
In
exceptional circumstances, the Committee may, in their sole discretion, determine not to
procure the transfer or issue of Shares to an Optionholder who exercises SARs, but instead
may pay him or her the Gain in cash, less applicable tax withholding. 

	 	
Rule
10.10 is deleted and replaced with the following:  

	 	10.10 	Acquisition
of Shares Used to Satisfy Exercise

	 	
The
Subsidiary employing the Optionholder may acquire Shares to cover an Optionholder’s
exercise of his or her SARs by: 

	 	(i) 	Purchase
on the open market; or  

	 	(ii) 	Purchase
of the Shares from a trust affiliated with the Company at the NYSE           dosing price
on the Option Exercise Date.  

	 	
Instead
of the Subsidiary covering the exercise of SARs through a purchase of Shares, the Company
may allot, issue or transfer Shares directly to the Optionholder to cover an exercise of
SARs.  

	9  	Other
Rule Changes 

	 	
Such
other Rules of the Option Plan shall be modified to the extent necessary to reflect the
use of SARs and the relevant laws of the United States. 

26 

Schedule 3
The ICI
Share Appreciation Rights Plan 2004  

This Schedule 3 contains the rules of
the ICI Share Appreciation Rights Plan 2004 (the SAR Plan). The rules of the ICI Executive
Share Option Plan (excluding Schedules 1 and 2) will as amended by this Schedule 3, apply
to SARs granted under the SAR Plan. Under the SAR Plan, the Committee may make grants
which shall be designated as Share Appreciation Rights (at the Date of Grant 

	1  	SAR 

	 	
Where
an Option is granted on an SAR under the SAR Plan the Optionholder will not have any right
to acquire Shares but shall be granted a right to receive cash calculated as set out below 

	2  	Exercise 

	 	
Following
the exercise of an SAR, the holder shall not be required to pay the Option Price but shall
(subject to any withholding under Rule 11.8) receive a cash amount equal to the amount by
which the Market Value of the number of Shares in respect of which the SAR is exercised
exceeds the Option Price, specified at the Date of Grant. The cash amount will be paid as
soon as practicable following exercise of the SAR, either through payroll or directly, as
the Committee may determine. No Shares will be issued or transferred pursuant to an SAR. 

	3  	Market
Value 

	 	
For
these purposes, Market Value shall have the same meaning as that in Rule 3.1.  

	4  	Rule
Changes 

	 	
The
Rules of the ICl Executive Share Option Plan 2004 shall be varied to reflect the
provisions of paragraph 1 of this Schedule 3. 

27 

Table of Contents 

	Contents		Page
	
 1	Definitions	  1
	
 2	Grant of Options	  2
	
 3	Option Price	  4
	
 4	Individual limits	  4
	
 5	Plan limits	  4
	
 6	Variations in share capital	  5
	
 7	Exercise and lapse - general rules	  5
	
 8	Exercise and lapse - exceptions to the general rules	  6
	
 9	Exchange of Options	10
	
10	Exercise of Options	11
	
11	General	13
	
12	Changing the Plan	16
	
13	Governing law and jurisdiction	17

	Schedule 1 The ICI Executive Approved Share Option Plan 2004	18
	
Schedule 2 ICI Share Appreciation Rights Plan (US) 2004	23
	
Schedule 3 The ICI Share Appreciation Rights Plan 2004	27

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