Document:

The WPP 2005 Executive Stock Option Plan

 Exhibit 4.39 
 WPP GROUP PLC 
  

	
	 THE WPP 2005 EXECUTIVE STOCK OPTION PLAN
  
 As approved by shareholders of WPP Group plc on 26th September 2005
prior to the introduction of a new holding company by a scheme of
arrangement under section 425 of the Companies Act 1985 and
adopted
by the Board of Directors of WPP Group Plc on 27th October 2005 and as
amended by a written
resolution dated 16 February 2006 and as amended
by a resolution of the Compensation Committee dated 21 February 2006

 CONTENTS 
  

					
	1	  	DEFINITIONS AND INTERPRETATION	  	2
			
	2	  	ELIGIBILITY	  	3
			
	3	  	GRANT OF OPTIONS	  	3
			
	4	  	LIMITS	  	5
			
	5	  	PERFORMANCE CONDITIONS	  	7
			
	6	  	EXERCISE OF OPTIONS	  	7
			
	7	  	TAKEOVER, RECONSTRUCTION AND WINDING-UP	  	9
			
	8	  	VARIATION OF CAPITAL	  	10
			
	9	  	ALTERATIONS	  	11
			
	10	  	MISCELLANEOUS	  	11
			
	11	  	WITHHOLDING	  	12
			
		  	APPENDIX 1	  	13
			
		  	APPENDIX 2	  	18
			
		  	APPENDIX 3	  	19
			
		  	APPENDIX 4	  	20
			
		  	APPENDIX 5	  	21
			
		  	APPENDIX 6	  	22
			
		  	APPENDIX 7	  	23

  

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	1	DEFINITIONS AND INTERPRETATION 

  

	1.1	In this Plan, unless the context otherwise requires: 

 “Act” means the Companies Act 1985 as amended; 
 “Board” means the board of directors of the
Company or a committee appointed by such board of directors; 
 “Depository” means any depository or depositories which hold
or whose nominee holds WPP ADRs; 
 “Company” means WPP Group plc (registered in England and Wales No. 5537577);

 “Grant Date” in relation to an Option means the date on which the Option 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 that Act) a subsidiary undertaking of a body corporate within paragraph (a) above and has been designated by the
Board for this purpose; 

 “ITEPA” means the Income Tax (Earnings and Pensions) Act 2003; 
 “Key Feature” means a provision of this Plan which is necessary in order to meet the requirements of Schedule 4; 
 “Option” means a right to acquire Shares or WPP ADRs under the Plan; and a right to acquire Shares shall be known as a “Share
Option” and a right to acquire WPP ADRs shall be known as an “ADR Option”; 
 “Participant” means a person who
holds an Option granted under the Plan; 
 “Participating Company” means the Company or any Subsidiary; 
 “Plan” means the WPP 2005 Executive Stock Option Plan as herein set out but subject to any alterations or additions made under Rule 8
below; 
 “Schedule 4” means Schedule 4 to ITEPA; 
 “Schedule 9” means Schedule 9 to the Taxes Act 1988; 
 “Share” means an ordinary share in the capital of the Company and for the purposes of Rule 4 (Limits) and, if the context requires, other provisions of the Rules, “Shares” include WPP
ADRs; 
  

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 “Specified Age” means 65 years of age; 
 “Subsidiary” means a body corporate which is a subsidiary of the Company within the meaning of section 736 of the Companies Act 1985;

 “Taxes Act 1988” means the Income and Corporation Taxes Act 1988; 
 “Treasury Shares” means qualifying shares (within the meaning of Section 162(4) of the Act) of the Company which are purchased by
the Company out of distributable profits in accordance with section 162 of the Act and held by the Company as treasury shares and which, pursuant to the Act, can be sold for cash, transferred for the purpose of or pursuant to an employees’
share scheme (within the meaning of Section 743 of the Act) or cancelled; 
 “WWOP” means the WPP 2005 Worldwide
Ownership Plan adopted on 27th October 2005 as from time to time amended; 
 “WPP ADR” means an American Depository Receipt representing, for the time being, 5 Shares deposited with Citibank NA as depository
pursuant to the Deposit Agreement between the Company and Citibank NA as of 27th October 2005 as amended from
time to time and/or any other American depository receipt arrangement sponsored by the Company, 
 and expressions not otherwise defined
herein have the same meanings as they have in Schedule 4. 
  

	1.2	Any reference in the Plan to any enactment includes a reference to that enactment as from time to time modified, extended or re-enacted. 

  

	2	ELIGIBILITY 

  

	2.1	Subject to Rule 2.2 below, a person is eligible to be granted an Option under the Plan if (and only if) he is an executive director or employee of a Participating Company.

  

	2.2	A person is not eligible to be granted an Option under the Plan at any time within the six months immediately preceding the date (if any) on which he is bound to retire in
accordance with the terms of his contract of employment. 

  

	2.3	No person is entitled, by virtue of the provisions of the Plan or any other means, to participate as of right in the Plan through the grant of an Award and consequently the receipt
of an Award shall in no circumstances give or imply any right to received any further award and any further right that is in fact granted to the same Participant may be on the same or on different terms. 

  

	3	GRANT OF OPTIONS 

  

	3.1	Subject to Rules 3.2 and 3.5 below and Rule 4 below, the Board may grant or procure the grant to any person who is eligible to be granted an Option under the Plan a Share Option or
an ADR Option, upon the terms set out in the Plan; and for 

  

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 this purpose a Share Option to acquire means an option to subscribe for Shares or receive the transfer of
Treasury Shares or other Shares as determined by the Board from time to time. 
  

	3.2	An Option may only be granted under the Plan: 

  

	 	(a)	within the period of 6 weeks beginning with the date on which the Plan is adopted by the Board or the 6 week period beginning with the dealing day next following the date on which
the Company announces its interim or final results for any period, or at any other time when the circumstances are considered by the Board to be sufficiently exceptional to justify the grant thereof; and 

  

	 	(b)	within the period of 10 years beginning with the date on which the Plan is approved by shareholders on 26 September 2005. 

  

	3.3	The price at which Shares may be acquired by the exercise of an Option shall be determined by the Board before the grant thereof, but shall not be less than:

  

	 	(a)	in the case of a Share Option, if Shares of the same class as those Shares are listed in the London Stock Exchange Daily Official List, the lower of the two prices shown for the
shares on that day plus one quarter of the difference between them (as derived from that List or other reputable market source that is able to provide the relevant information at a more appropriate time, even though that source may not be able to
guarantee that the information provided will be identical to that subsequently published in that List) on the Grant Date; 

  

	 	(b)	in the case of a Share Option, if paragraph (a) above does not apply, the market value (within the meaning of Part VIII of the Taxation of Chargeable Gains Act 1992) of Shares
of that class at the relevant Grant Date, as reasonably determined by the Board; 

  

	 	(c)	in the case of an ADR Option, the fair market value of a WPP ADR as quoted on NASDAQ National Market System over a number of consecutive dealing days (being not more than five)
immediately preceding or ending on the Grant Date; or 

  

	 	(d)	except in the case of an Option to acquire shares otherwise than by subscription, the nominal value of those Shares. 

  

	3.4	An Option granted under the Plan to any person: 

  

	 	(a)	shall not, except as provided in Rule 6.3 below, be capable of being transferred by him; and 

  

	 	(b)	shall lapse immediately if he is adjudged bankrupt. 

  

	3.5	An Option granted under the Plan to a person shall lapse if that person ceases to be a director or employee of a Group Member, other than by reason of his death, injury or
disability, within six months of the Grant Date unless the Board shall determine otherwise. 

  

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	4	LIMITS 

  

	4.1	The number of Shares in respect of which Options may be granted under the Plan on any day which are to be satisfied by the issue of Shares when added to the aggregate of:

  

	 	(a)	the number of Shares which immediately prior to that day have been or are to be issued to satisfy outstanding Options under the Plan; and 

  

	 	(b)	the number of Shares which immediately prior to that day have been or are to be issued to satisfy options or awards granted or made under any other employees’ share scheme of
any Group Member in the ten years immediately before that day 

 shall not exceed 10% of the issued ordinary share capital of
the Company for the time being. 
  

	4.2	The aggregate market value of the Shares subject to an Option granted under the Plan on any day to a Participant may not, when added to the aggregate market value of the Shares
(valued at the date or dates of grant of the relevant Option or Options) which are or have been subject to options granted to him within the preceding twelve months under the Plan or any Relevant Scheme, exceed four times his Annual Remuneration.
For the purposes of this Rule 4.2 the following terms will have the following meanings: 

  

			
	 “Annual Remuneration”
	 	in relation to a Participant, the gross rate of basic annual salary (excluding any bonuses, company pension contributions and any other benefits in kind) payable to the relevant Eligible
Employee by any Group Company as at the relevant Grant Date;
		
	 “Relevant Scheme”
	 	any employees’ share scheme (within the meaning given to that term in section 743 of the Companies Act 1985) established by any Group Member (other than savings-related schemes or profit
sharing schemes approved by the Inland Revenue under Schedule 9 to the Taxes Act or Schedule 3 to ITEPA or any other schemes linked to contractual savings schemes or any share incentive plans approved by HM Revenue & Customs under Schedule 8 to
the Finance Act 2000 or Schedule 2 to ITEPA);

 and for the purposes of this Rule: 
  

	 	(a)	any Option which shall have been released to any extent shall be treated to that extent as if it were still exercisable; 

  

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	 	(b)	shares in a Participating Company shall not be regarded as benefits in kind; 

  

	 	(c)	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 for
that day published in a national newspaper as the Board shall reasonably determine; and 

  

	 	(d)	a person’s remuneration shall be deemed to include fees paid to a company whose principal purpose is to provide his services being services of a nature which he would be
expected to perform as an employee of a Participating Company, and being fees referable to those services and exclusive of VAT. 

  

	4.3	For the purposes of this Rule, the market value of the Shares in relation to which an Option was granted shall be calculated: 

  

	 	(a)	in the case of an Option granted under the Plan, as of the day by reference to which the price at which Shares may be acquired by the exercise thereof was determined in accordance
with Rule 3.3 above; 

  

	 	(b)	in the case of an option granted under any option scheme (other than a savings related scheme) approved by HM Revenue & Customs, as at the time when it was granted or, in a
case where an agreement relating to the Shares has been made under paragraph 29 of Schedule 9 or paragraph 22 of Schedule 4, such earlier time or times as may be provided in the agreement; and 

  

	 	(c)	in the case of any other option, as on the day or days by reference to which the price at which shares may be acquired by the exercise thereof was determined

 and the Board may adopt such exchange rate as it thinks fit for the conversion of one currency to another currency.

  

	4.4	For the purpose of this Rule 4, any Treasury Shares which are or are to be transferred for the purpose of satisfying options or other awards shall be taken as being Shares that are
issued or to be issued for that purpose. 

  

	4.5	All Options granted under the Plan shall be regarded for the purposes of this Rule 4 as Options that will involve the issue of new Shares unless and until the Board determines that
the Option will be satisfied by the transfer of Shares (or ADRs which have not been created using new Shares issued for the purpose of satisfying options or awards under employee share schemes). The Board may only make such a determination in
respect of an Option that has already been issued if it has made arrangements under which the relevant Shares or ADRs will be available when required. 

  

	4.6	Any Option granted under the Plan shall be limited and take effect so that the above limits are complied with (with all Options being granted on the same day being scaled back on a
pro-rata basis and rounded down to the nearest whole Share or WPP ADR). 

  

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	5	PERFORMANCE CONDITIONS 

  

	5.1	An Option granted under the Plan to a director of the Company may not be exercised if the relevant condition is not satisfied; and in this Rule the relevant condition is the
condition in Appendix 7 or such other objective condition relating to performance as may be specified by the Board at the time of the grant of that Option. 

  

	5.2	In determining whether the relevant condition has been met where an Option is to be exercised in accordance with any of Rules 6.3, 6.4(a), 6.4(b), 6.4(c), 7.1 and 7.3, the Board may
determine that the relevant condition should be adjusted on a pro-rated basis to allow for any reduction in time between the Grant Date and the date of cessation, compared to the time between Grant Date and the end of the performance period. Where
such a determination is made, the Board shall be entitled to take into account such information relating to the performance of the company as it considers to be appropriate and may adjust the method of assessment of the performance condition as it
considers to be appropriate to the circumstances (so that, for example, if the cessation occurs one month after the end of the accounting period in which the Option was granted, the Board may assess the satisfaction of the relevant condition from
the earnings of the Company for the accounting period in which the Option was granted without reference to the performance in following month). 

  

	5.3	The Board may at the time of grant of any Option, impose conditions on that grant relating to performance and specify terms relating to how those conditions interact with the other
provisions of this Plan. 

  

	6	EXERCISE OF OPTIONS 

  

	6.1	The exercise of any Option granted under the Plan shall be effected in such form and manner as the Board may from time to time prescribe. 

  

	6.2	Subject to Rules 6.3 and 6.4 below and to Rules 7.1 and 7.3 below, an Option granted under the Plan may not be exercised before the third anniversary of the Grant Date.

  

	6.3	Subject to Rule 5 above, if any Participant dies before exercising an Option granted to him under the Plan and 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 Rule 6.4 below, the Option may (and must, if at all) be exercised by his personal representatives within 12 months after the date of his death. 

  

	6.4	If any Participant ceases to be a director or employee of a Group Member (otherwise than by reason of his death), the following provisions apply in relation to any Option granted to
him under the Plan: 

  

	 	(a)	if he so ceases by reason of injury or disability, 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, subject to Rule 5 above, the Option may (and subject to Rule 6.3 above must, if at all) be exercised within the exercise period; 

  

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	 	(b)	if he so ceases by reason of retirement on or after reaching the age at which he is bound to retire in accordance with the terms of his contract of employment (or, if there is no
such age, if he retires at all), or on or after the Specified Age, in each case more than six months after the Grant Date subject to Rule 5 above, the Option may (and subject to Rule 6.3 above must, if at all) be exercised within the exercise
period; 

  

	 	(c)	if he so ceases for any other reason, the Option may not be exercised at all unless the Board shall so permit, in which event, subject to Rule 5 above, it may (and subject to Rule
6.3 above must, if at all) be exercised to the extent permitted by the Board within the exercise period; 

 and in this Rule the
exercise period is the period which shall expire 6 months after his so ceasing. 
  

	6.5	Subject to Rule 6.6 below, a Participant shall not be treated for the purposes of Rule 6.4 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 and a female Participant who ceases to be such a director or employee by reason of pregnancy or confinement and who exercises her right to return to work under the Employment Rights Act
1996 before exercising an Option under the Plan shall be treated for those purposes as not having ceased to be such a director or employee. 

  

	6.6	Other than in respect of Options granted under the Approved Part, a Participant, who gives or is given notice to leave employment as a director or employee of a Group Member in any
circumstances other than death or in those circumstances referred to in Rule 6.4(a) or 6.4(b), shall, if he subsequently ceases to be in such employment, be treated for the purposes of Rule 6.4 above as ceasing to be a director or employee of a
Group Member on the date on which that notice is given (and for the avoidance of doubt any purported exercise of the option during the period of notice shall be of no effect). If a Participant gives or is given notice to leave employment as a
director or employee of a Group Member and the Board subsequently uses its discretion under Rule 6.4(c) to allow his Option to be exercisable, nothing in this Rule 6.6 will make his Option lapse or cease to be exercisable. 

 

	6.7	Notwithstanding any other provision of the Plan, an Option granted under the Plan may not be exercised after the expiration of the period of 10 years (or such shorter period as the
Board may have determined before the grant thereof) beginning with the Grant Date (the last day of such period being the “Expiry Date”). 

  

	6.8	Within 30 days after an Option under the Plan has been exercised by any person, the grantor of the Option shall, in the case of a Share Option, procure the allotment or transfer to
him (or a nominee for him) of the number of Shares in respect of which the Option has been exercised and, in the case of an ADR Option, procure the issue or transfer to him of WPP ADRs in respect of which the Option has been exercised (including, if
appropriate, by procuring the allotment or transfer of Shares to a Depository) unless: 

  

	 	(a)	the Board considers that the issue or transfer thereof would not be lawful in all relevant jurisdictions; or 

  

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	 	(b)	in a case where a Group Member is obliged to account for any tax (in any jurisdiction) for which the person in question is liable by virtue of the exercise of the Option, that or
another Group Member is unable to withhold the tax from his remuneration nor has received payment from him of a corresponding amount. 

  

	6.9	All Shares allotted under the Plan shall rank pari passu in all respects with the Shares of the same class for the time being in issue save as regards any rights attaching to
such Shares by reference to a record date prior to the date of the allotment. 

  

	6.10	If Shares of the same class as those allotted under the Plan are listed in the London Stock Exchange Official List, the Company shall apply to the London Stock Exchange for any
Shares so allotted to be admitted to that List. 

  

	6.11	Where any Option becomes exercisable before the end of the period referred to in Rule 6.2 by reason of the provisions of Rules 6.3 or 6.4, the number of shares or ADRs in respect of
which the Option may be exercised shall be reduced on a pro-rated basis to take account of the early date on which the Option may be exercised (calculated on the basis of the number of days until the end of the period compared to the number of days
in the whole period) unless the Board determine to the contrary. 

  

	7	TAKEOVER, RECONSTRUCTION AND WINDING-UP 

  

	7.1	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 such control makes such an offer, the Board shall within 7 days of becoming aware thereof notify every Participant thereof and, subject to Rule 5 above and Rules 6.3, 6.4, 6.6 and 6.7 above, an Option granted under the Plan may be
exercised within one month (or such longer period as the Board may permit) of such notification. 

  

	7.2	For the purposes of Rule 7.1 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. 

  

	7.3	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 under section 425 of that Act the Court
sanctions a compromise or arrangement proposed for the purposes of or in connection with a scheme for the reconstruction of the Company or its amalgamation with any other company or companies, 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, the Board shall forthwith notify every Participant thereof and any Option granted under the Plan may, subject to Rule 5 above and Rules 6.3, 6.4 and 6.6 above, 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 the Plan) lapse on the expiration thereof. 

  

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	7.4	The Board may determine (the determination to apply equally to all Options outstanding at the time) that the provisions of Rules 7.1 and 7.3 above will neither cause Options to
become exercisable nor to lapse at different times than would otherwise be the case, if the Board considers that the Options will continue to be an appropriate incentive notwithstanding the changed circumstances, or that the position of Participants
can be adequately preserved by the grant to them of some other right or rights in substitution for or addition to the existing rights. 

  

	7.5	Where any Option becomes exercisable before the end of the period referred to in Rule 6.2 by reason of the provisions of Rules 7.1 or 7.3, the number of shares or ADRs in respect of
which the Option may be exercised shall be reduced on a pro-rated basis to take account of the early date on which the Option may be exercised (calculated on the basis of the number of days until the end of the period compared to the number of days
in the whole period). 

  

	8	VARIATION OF CAPITAL 

  

	8.1	In the event of any increase or variation of the share capital of the Company (whenever effected), the Board may make such adjustments as it considers appropriate under Rule 8.2
below provided that the auditors or other financial advisers appointed by the Board acting as experts and not as arbitrators confirm that in their opinion the variation is fair and reasonable and such confirmation shall be final and binding.

  

	8.2	An adjustment made under this Rule shall be to one or more of the following: 

  

	 	(a)	the number and description of Shares in respect of which any Option granted under the Plan may be exercised; 

  

	 	(b)	the price at which Shares may be acquired by the exercise of any such Option; 

  

	 	(c)	where any such Option has been exercised, but no Shares have been allotted or transferred pursuant to such exercise, the number and description of Shares which may be so allotted or
transferred and the price at which they may be acquired. 

  

	8.3	An adjustment under Rule 8.2 above may have the effect of reducing the price at which Shares may be acquired by the exercise of an Option to less than their nominal value, but only
if and to the extent that the Board shall be authorised to capitalise from the reserves of the Company a sum equal to the amount by which the nominal value of the Shares in respect of which the Option is exercised and which are to be allotted
pursuant to such exercise exceeds the price at which the same may be subscribed for and to apply such sum in paying up such amount on such Shares; and so that on exercise of any Option in respect of which such a reduction shall have been made the
Board shall capitalise such sum (if any) and apply the same in paying up such amount as aforesaid. 

  

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	8.4	As soon as reasonably practicable after making any adjustment under Rule 8.2 above, the Board shall give notice in writing thereof to any Participant affected thereby.

  

	9	ALTERATIONS 

  

	9.1	Subject to Rule 9.2 below, the Board may at any time alter or add to all or any of the provisions of the Plan, or the terms of any Option granted under it, in any respect.

  

	9.2	No alteration or addition to the advantage of Participants or potential Participants shall be made under Rule 9.1 above to any Rule of the Plan without the prior approval by
ordinary resolution of the members of the Company in general meeting other than a minor amendment to benefit the administration of the Plan, to take account of a change in legislation, or to obtain or maintain favourable tax, exchange control or
regulatory treatment for any Participant or any Group Member. 

  

	9.3	As soon as reasonably practicable after making any alteration or addition under Rule 9.1 above, the Board shall give notice in writing thereof to any Participant affected thereby.

  

	10	MISCELLANEOUS 

  

	10.1	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 the Plan or any right
which he may have to participate therein, and an individual who participates therein shall by participating be deemed to 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 any Option under the Plan as a result of such termination. Any benefit under the Plan shall not be regarded as salary or counted
for pension or any other purpose. Participation in the Plan by any individual is entirely at the discretion of the Board and in no circumstances shall the fact that an individual has received an Option or Options in the past give that individual any
right to receive a further Option or Options. 

  

	10.2	In the event of any dispute or disagreement as to the interpretation of the Plan, or as to any question or right arising from or related to the Plan, the decision of the Board shall
be final and binding upon all persons. 

  

	10.3	The Company and any Subsidiary may provide money to the trustees of any trust or any other person to enable them or him to acquire Shares to be held for the purposes of the Plan
(which Shares may be held by a Depository on behalf of any such trustees or other person) or enter into any guarantee or indemnity for these purposes, to the extent permitted by section 153 of the Companies Act 1985. 

  

	10.4	Any notice or other communication under or in connection with the Plan may be given by personal delivery, delivery by email or by sending the same by post, in the case of a company
to its registered office (or to such other address and person as may be specified by the Company from time to time), and in the case of an individual to his last known address, or, where he is a director or employee of a Group

  

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 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. 
  

	10.5	The Board may establish further plans based on the Plan but modified to take account of local tax, exchange control or securities laws in overseas territories, provided that any
Shares made available under such further plans are treated as counting against the limits expressed in Rules 4.1 to 4.6. 

  

	10.6	The Plan and any Option shall be governed by and construed in accordance with the laws of England and Wales and the Company and the Participants (together with any eligible persons
who do not become Participants) shall submit to the exclusive jurisdiction of the Courts of England and Wales. 

  

	11	WITHHOLDING 

  

	11.1	The grant or exercise of any Option under this Plan is subject to the condition that the grant or an exercise of the Option shall not be valid unless the Participant has, in
addition to complying with the other requirements of this Plan, paid or procured the payment to the Group Member which is his employer, or otherwise provided for (in a manner satisfactory to that Group Member or, if appropriate, the trustees of any
employee benefit trust) an amount equal to the Taxation for which any Group Member may be liable by reason of that grant or exercise. 

  

	11.2	Without limitation to 11.1 above, the Company or any other Group Member which is a Participant’s employer or the trustees of any employee benefit trust may withhold any amount
and make such arrangements as it considers necessary which comply with applicable law to meet any liability to Taxation in respect of the grant, exercise or cancellation of Options or other event relating to Options or in respect of any benefit
under this Plan. These arrangements may include the sale of any Shares on behalf of a Participant, which the Participant is deemed to have authorised, to produce a cash sum sufficient to meet the Taxation liabilities referred to in this Rule 11.

  

	11.3	The Company may in its sole discretion waive the requirements set out in this Rule 11 in respect of any part of the Participant’s employer’s liability to
Taxation, including in particular, any employer’s liability to National Insurance Contributions. 

  

	11.4	In this Rule, “Taxation” means all forms of taxation or levy by any state or any political subdivision of a state and includes income tax, Pay as You Earn, National
Insurance or other social security contributions, whether being the primary liability of the employer or the employee, or any other person. 

  

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 APPENDIX 1 
 This Appendix constitutes the HM Revenue & Customs approved part of the WPP 2005 Executive Stock Option Plan (the “Approved Part”). In the event of any conflict between the Plan and Appendix 1, the latter shall
prevail. The terms of the Approved Part are identical to those of the other part of the said Plan, to which this Approved Part is appended except as follows: 
  

	2	In the definition of “Subsidiary” in Rule 1.1, add to the end words “and is under the control of the Company within the meaning of Section 840 of the
Taxes Act 1988”. 

  

	3	In Rule 2.1, delete the words “an executive director or employee of a Participating Company.” and substitute the words: 

 “a full-time director or qualifying employee of a Participating Company. For the purposes of this Rule 2.1: 
  

	 	(a)	a person shall be treated as a full-time director of a Participating Company if he is obliged to devote to the performance of the duties of his office or employment with that
and any other Participating Company not less than 25 hours a week (excluding meal breaks); 

  

	 	(b)	a qualifying employee, in relation to a Participating Company, is an employee of the Participating Company (other than one who is a director of a Participating
Company).” 

  

	4	In Rule 2.2, add to the end the words “nor when he is not eligible to participate in the Plan by virtue of paragraph 9 of Schedule 4 (material interest)”.

  

	5	Only Share Options, and not ADR Options, shall be granted under the Approved Part and therefore no references to ADRs or ADR Options shall apply in respect of an Option granted
under this Appendix 1. 

  

	6	In Rule 3.1, after the words “procure the grant” add the words “by deed, seal or for consideration” and after the word “Company” in the definition of
“Share”, add the words “which satisfy the requirements of paragraphs 16 – 20 of Schedule 4”. 

  

	7	In Rule 3.2, after the first mention of the word “Board” add the words “the date on which the Approved Part is approved by HM Revenue & Customs under
Schedule 4”. 

  

	8	In Rule 3.3(a), delete the words “or other reputable market source that is able to provide the relevant information at a more appropriate time, even though that source may not
be able to guarantee that the information provided will be identical to that subsequently published in that List”. 

  

	9	In Rule 3.3(b), delete the words “reasonably determined by the Board” and substitute the words “agreed in advance for the purposes of the Plan with Shares Valuation
of HM Revenue & Customs, on the Grant Date (or such other day as may be agreed with HM Revenue & Customs)”. 

  

 13 

	10	At the end of Rule 3.5 add the words “(provided that in the case of a cessation due to redundancy or retirement within six months of the Grant Date there shall be no such
discretion and the Option shall lapse immediately on such cessation)”, and add the words “acting fairly and reasonably” after the word “Board” where it appears in that Rule. 

  

	11	Add the following as Rule 4.3A: 

 “No person shall be
granted Options under the Approved Part which would, at the time they are granted cause the aggregate market value (determined as at the date of each relevant grant) of the Shares which he may acquire in pursuance of Options granted to him under the
Approved Part or under any other share option scheme, not being a savings related share option scheme, approved under Schedule 9 or any option scheme approved under Schedule 4 and established by the Company or by any associated company of the
Company (and not exercised) to exceed or further exceed £30,000 or such other limit as may be prescribed in paragraph 6 of Schedule 4”. 
  

	12	In Rule 5.2, add the words “acting fairly and reasonably” after the word “Board” in the 3rd line. 

  

	13	In Rule 6(4)(c), after the words “the Board” (on both occasions where those words appear) add the words “(acting fairly and reasonably) and, at the end of the Rule,
add the words “provided that the discretions of the Board contained in this Rule 6.4(c) shall not apply in the case of a cessation by reason of redundancy (in which case the Option shall lapse immediately)”. 

  

	14	Add the following as Rule 6.7A: 

 “A Participant shall
not be eligible to exercise an Option under the Plan at any time when he is not eligible to participate in the Plan by virtue of paragraph 9 of Schedule 4”. 
  

	15	Delete Rule 6.8 (b) and insert the following as Rule 6.8A: 

 “In a case where a Group Member is obliged to account for any tax (in any jurisdiction) for which the person in question is liable by virtue of the exercise of the Option, the Board may require the Participant to make a payment to the
Company of an amount equal to the reasonable estimate of the Company of that tax as a condition precedent to the exercise of the Option provided that if that estimate proves to be in excess of the actual liability then the excess will be refunded to
the Participant.” 
  

	16	At the end of Rule 6.11, add the words “acting fairly and reasonably”. 

  

	17	In Rule 7.1, insert the words “not exceeding four months” after the word “period” in the penultimate line. 

  

 14 

	18	Add the following as Rules 7.6 and 7.7: 

  

	 	“7.5	(a)     If any company (the “acquiring company”): 

      obtains control of the Company as a result of making – 
  

	 	(i)	a general offer to acquire the whole of the issued ordinary share capital of the Company which is made on a condition such that if it is met the person making the offer will have
control of the Company, or 

  

	 	(ii)	a general offer to acquire all the Shares in the Company which are of the same class as the Shares which may be acquired by the exercise of Options granted under the Plan, or

  

	 	(b)	obtains control of the Company in pursuance of a compromise or arrangement sanctioned by the court under section 425 of the Companies Act 1985 or Article 418 of the Companies
(Northern Ireland) Order 1986, or 

  

	 	(c)	becomes bound or entitled to acquire Shares in the Company under sections 428 to 430F of that Act or Articles 421 to 423 of that Order, 

 any Participant may at any time within the appropriate period (which expression shall be construed in accordance with paragraph 26 of Schedule 4), by
agreement with the acquiring company, release any Option granted under the Plan which has not lapsed (the “old option”) in consideration of the grant to him of an option (the “new option”) which (for the
purposes of that paragraph) is equivalent to the old option but relates to shares in a different company (whether the acquiring company itself or some other company falling within paragraph 16(b) or (c) of Schedule 4). 
  

	 	7.6	The new option shall not be regarded for the purposes of Rule 7.5 above as equivalent to the old option unless the conditions set out in paragraph 27 of Schedule 4 are satisfied,
but so that the provisions of the Plan shall for this purpose be construed as if: 

  

	 	(i)	the new option were an option granted under the Plan at the same time as the old option; 

  

	 	(ii)	except for the purposes of the definitions of “Group Member”, “Participating Company” and “Subsidiary” in Rule 1.1 above and the reference to “the
Board” in Rule 6.7 above, the expression the “Company” were defined as “a company whose shares may be acquired by the exercise of options granted under the Plan”; 

  

	 	(iii)	the relevant condition referred to in Rule 6.3 above had been satisfied; and 

  

	 	(iv)	Rule 9.2 below were omitted.” 

  

 15 

	19	At the start of Rule 8.1, add the words “Subject to Rule 8.2A below”. 

  

	20	In Rule 8.1, delete the words “increase or.” 

  

	21	In Rules 8.2(a) and (c), insert the words “(but not the class)” after the word “description”. 

  

	22	Add the following as Rule 8.2A: 

 “At a time when the
Plan is approved by HM Revenue & Customs under Schedule 4, no adjustment under Rule 8.2 above shall be made without the prior approval of HM Revenue & Customs.” 
  

	23	In Rule 9.1 delete the words “Rule 9.2” and substitute the words “Rules 9.2, 9.2A and 9.2B”. 

  

	24	At the end of Rule 9.1, add the words “(having regard to the fact that, if an alteration or addition which does not solely relate to a special term is made at a time when the
Plan is approved by HM Revenue & Customs under Schedule 4, the alteration or addition to any Key Feature will not thereafter have effect unless and until HM Revenue & Customs have approved the alteration or addition)”.

  

	25	Add the following as Rule 9.2A and 9.2B: 

  

	 	“9.2A	No alteration or addition to the disadvantage of any Participant, other than to a special term, shall be made under Rule 9.1 above unless: 

  

	 	(a)	the Board shall have invited every relevant Participant to give an indication as to whether or not he approves the alteration or addition, and 

  

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

  

	 	9.2B	No alteration or addition which solely relates to a special term subject to which an Option has been granted shall be made under Rule 9.1 above unless: 

  

	 	(a)	there shall have occurred an event which shall have caused the Board reasonably to consider that the special term would not, without the alteration or addition, achieve its original
purpose, and 

  

	 	(b)	the Board shall act fairly and reasonably in making the alteration or addition which must be no more difficult to satisfy than the original.” 

  

	26	At the end of Rule 9.3, add the words “and if the Plan is then approved by HM Revenue & Customs under Schedule 4, to HM Revenue & Customs.”

  

 16 

	27	Add as Rule 9.4: 

 “Any reference in this Rule to a
special term is a reference to a term specified by the Board as mentioned in Rule 3.1 above or a term of the Schedule hereto”. 
  

	28	Delete Rule 11 and substitute the following Rule 11: 

  

	 	“11.	Withholding 

  

	 	11.1	The exercise of any Option under this Plan is subject to the condition that the exercise of the Option shall not be valid unless the Participant has, in addition to complying with
the other requirements of this Plan, paid or procured the payment to the Group Member which is his employer, or otherwise provided for (in a manner satisfactory to that Group Member or, if appropriate, the trustees of any employee benefit trust) an
amount equal to the Taxation for which any Group Member may be liable by reason of that exercise. 

  

	 	11.2	Without limitation to 11.1 above, the Company or any other Group Member which is a Participant’s employer or the trustees of any employee benefit trust may withhold any amount
and make such arrangements as it considers necessary which comply with applicable law to meet any liability to Taxation in respect of the exercise of Options under this Plan. These arrangements may include the sale of any Shares on behalf of a
Participant, which the Participant is deemed to have authorised, to produce a cash sum sufficient to meet the Taxation liabilities referred to in this Rule 11. 

  

	 	11.3	The Company may, acting fairly and reasonably, waive the requirements set out in this Rule 11 in respect of any part of the Participant’s employer’s liability to Taxation,
including in particular, any employer’s liability to National Insurance Contributions. 

  

	 	11.4	In this Rule, “Taxation” means taxation by any state or any political subdivision of a state and includes income tax, Pay as You Earn and primary National Insurance and
their equivalents in jurisdictions outside of the united Kingdom.” 

  

 17 

 APPENDIX 2 
 Special Rules Applicable to Grants of Incentive Stock Options 
  

	1.	Options granted in accordance with the Plan (either including or excluding Appendix 1 thereto) may be designated as “Incentive Stock Options” (“ISOs”)
within the meaning of section 422 of the United States Internal Revenue Code of 1986, as amended (the “U.S. Tax Code”). 

  

	2.	The aggregate number of Shares (including Shares comprised in any WPP ADR) for which ISOs may be granted under Appendix 2 shall not exceed 125,665,004.

  

	3.	The class of persons who may receive ISOs shall, in addition to the limitations imposed by Rule 2 of the Plan, be limited to those persons who are employees of the Company or its
“parent” or “subsidiary” corporations within the meaning of sections 424(f) and (g), respectively, of the U.S. Tax Code. 

  

	4.	In addition to any other restrictions contained in the Plan, ISOs shall not be transferable otherwise than by will or the laws of descent and distribution. During the lifetime of
the person to whom an ISO is granted, the ISO shall be exercisable only by such person. 

  

	5.	To the extent that the aggregate market value of Shares (including Shares comprised in any WPP ADR) with respect to which ISOs are exercisable (determined without regard to this
sentence) for the first time by a Participant during any calendar year (under all plans or schemes of the Company or its “parent” and “subsidiary” corporations within the meaning of sections 424(f) and (g), respectively, of the
U.S. Tax Code) exceeds US $100,000, such Options shall to the extent of such excess be treated as Options which are not ISOs. For the purposes of the preceding sentence, the market value of any Shares (including Shares comprised in any WPP ADR)
subject to an ISO shall be determined at the time such ISO is granted. 

  

	6.	This schedule shall be deemed to be included within the Plan as adopted by shareholders for the purpose of any ISO grants. 

  

 18 

 APPENDIX 3 
 India 
 The plan will apply to options granted to residents in India with the following modifications: 
  

	1.	Notwithstanding any other provision of the Plan, a person is eligible to be granted an option under this Appendix if (and only if) he is a full-time director or qualifying employee
(as defined in Paragraph 2 of Appendix 1) of a Participating Company (whether or not the Company itself) resident in India. 

  

	2.	All or any of the terms of the Option may be altered to comply with requirements imposed under applicable exchange control regulations and other laws of India in relation to that
Option and an Option may only be exercised if and to the extent permitted by those regulations. 

  

	3.	Applicable regulations of the Reserve Bank of India (“RBI”) do not currently limit the amount of funds that may be transferred for the purchase of stock pursuant to the
exercise of a stock option under the Plan, but such regulations are subject to change. Any cash balances received in respect of, (i) dividends must be repatriated to India within seven days of receipt, and (ii) proceeds from sale of shares
acquired pursuant to the Plan must be repatriated to India within ninety days of receipt. 

  

 19 

 APPENDIX 4 
 Belgium 
 The Plan will apply to Options granted to residents of Belgium with the
following modifications. 
  

	1.	In Rule 3(4), a further Rule (c) shall be added as follows: 

  

	 	“(c)	shall be cancelled if he notifies the Company that he refuses to accept the Option or if he fails to accept the Option within 60 days of the date of the Company’s communication
to him in respect of the Option.” 

  

	2.	In Rule 6(2), delete the words: 

 “the third
anniversary of the Grant Date” 
 and substitute the words 
 “the 1 January following the third anniversary of the Grant Date.” 
  

	3.	In Rule 6(3), delete the words: 

 “within 12 months
after the date of his death.” 
 and substitute the words 
 “in the later of the period of 12 months commencing with the date of his death or the period of 6 months commencing on 1 January following the third anniversary of the Grant Date.” 
  

	4.	In Rule 6(4), delete the words: 

 “and in this Rule
the exercise period is the period which shall expire 6 months after his so ceasing” 
 and substitute the words 
 “and in this Rule the exercise period is the period which shall commence on the 1 January following the third anniversary of the Grant
Date (the “Third Anniversary”) and expire 12 months after his so ceasing or 6 months after the Third Anniversary, whichever shall be the latest.” 
  

 20 

 APPENDIX 5 
 Netherlands 
 The Plan will apply to Options granted to residents of the Netherlands with the following alteration:

 Rule 11 shall be amended by the insertion of the following Rule: 
  

	“10.5	Without prejudice to Rules 11.1 to 11.4 above, each Option is granted subject to the condition that, upon such Option becoming exercisable in accordance with the Rules of the Plan,
the Participant will pay or procure the payment to the Group Member which is his employer or otherwise provide for (in a manner satisfactory to that Group Member or, if appropriate, the trustees of any employee benefit trust), an amount equal to
Taxation which any Group Member or the trustees of any employee benefit trust may be required to withhold on the Participant’s behalf by reason of that Option becoming exercisable. No Option in the Netherlands may be exercised, unless the
Participant has complied with his obligations under this Rule 10.5.” 

  

 21 

 APPENDIX 6 
 Switzerland 
 The Plan will apply to Options granted to the residents of Switzerland with the modification that in
Rule 6.7 the words “and six months” be inserted after the words “10 years”. 
  

 22 

 APPENDIX 7 
 Executive directors 
  

	29	Pursuant and subject to Rule 5, any Option granted to a director of the Company will be subject to the relevant condition given in this Appendix 7. 

 

	30	The relevant condition shall be: 

  

	30.1	the performance period shall be the period of three calendar years commencing with the start of the accounting period including the Grant Date (or with such later period as may be
specified by the Board at the time of the grant of the Option) (the “Performance Period”). 

  

	30.2	that the percentage increase in earnings per share of the Company over the Performance Period shall have exceeded the growth in the RPI by 5% per annum (compounded annually);
and 

  

	30.3	in the event that, at the end of the Performance Period, it is determined that the percentage increase in earnings per share of the Company over the Performance Period has not
exceeded the growth in the RPI by 5% per annum (compounded annually), the Option shall immediately lapse; and 

  

	30.4	For the purposes of the relevant condition: 

  

	 	(a)	Growth in Earnings Per Share shall be calculated by dividing the Earnings Per Share in respect of the third of the three consecutive Financial Years by the Earnings Per Share
achieved in the Financial Year ending immediately prior to the first day of the first of those three consecutive Financial Years (commencing no earlier than the Financial Year in which the Grant Date occurs). 

  

	 	(b)	Growth in the Retail Prices Index shall be calculated by dividing such Retail Prices Index as is published in respect of the month containing the last day of the third of the three
consecutive Financial Years referred to in 30.4(a) above by such Retail Prices Index as was published in respect of the month containing the last day of the Financial Year of the Company ending immediately prior to the first day of the first of
those three consecutive Financial Years. 

  

	30.5	The Board may make such fair and reasonable adjustments to the terms of the relevant condition as in its opinion it considers appropriate to take account of any Issue or
Reorganisation. 

  

	30.6	If SSAP 3 and/or FRS 3 are modified, replaced or substituted or if the composition of the Retail Prices Index changes and/or the Retail Prices Index is replaced by another similar
index, the Board may make such adjustments to the terms of the relevant condition as it in its opinion considers to be fair and reasonable. 

  

 23 

	30.7	Any adjustments made to the Performance Target pursuant to paragraphs 30.5 and 30.6 above shall be in accordance with and subject to Rule 9 of the Scheme and that any adjusted
Performance Target will in the reasonable opinion of the Board be materially no more difficult and no less difficult to satisfy than the Performance Target to which the exercise of the Option was originally subject; 

  

	30.8	As soon as is reasonably practical following the end of any relevant Financial Year of the Company the Board shall determine whether the Performance Target has been satisfied and
shall notify the Participant in writing if it has been satisfied and once satisfied the Option may, subject as otherwise provided in the Rules, be exercised at any time during the Option Period notwithstanding that for subsequent Financial Years the
Growth in Earnings Per Share may not exceed the Growth in the Retail Prices Index. 

  

	30.9	Any calculations or determinations by the Board in accordance with the Performance Target shall not be open to question and shall be final and binding on all persons concerned. The
Board may request the Auditors to carry out any or all of the calculations and determinations of it in connection with the Performance Target. If so, the Auditors shall act as experts and not as arbitrators and their calculations and determinations
shall not be open to question and shall be final and binding on all persons concerned. 

  

	31	For the purposes of the relevant condition the following terms shall have the following meanings: 

 “Earnings Per Share” means the earnings per share (as defined in SSAP 3 paragraph 10 as amended by FRS 3) of the Company determined in
accordance with such standards and as shown in the audited financial statements of the Company after making such adjustments to the earnings per share as the Board in its opinion considers appropriate in order to ensure that the measure of earnings
per share for the relevant Financial Years is on a fair and consistent basis including, without limitation, the following adjustments to earnings per share for the relevant Financial Years: 
  

	 	(a)	a proportionate upwards or downwards amendment in a case where the relevant Financial Year is more than or less than a calendar year; and/or 

  

	 	(b)	ignoring all exceptional and extraordinary items as defined in paragraphs 5 and 6 of FRS 3; and/or 

  

	 	(c)	ignoring the results of discontinued operations as defined in paragraph 4 of FRS 3. 

 “FRS” means Financial Reporting Standard of the Accounting Standards Board Limited. 
 “Issue or Reorganisation” means any capitalisation issue (other than the issue of shares pursuant to the exercise of an option given to the shareholders of the Company to receive shares in lieu of dividend) or rights offer
or any other variation in the share capital of the Company including (without limitation) any consolidation, sub-division or reduction of capital of the Company. 
  

 24 

 “Retail Prices Index” means the Retail Prices All Items Index Table: Indices back to
1947 (Table RP02) as published by the Office for National Statistics or any table which replaces it. 
 “SSAP” means
Statement of Standard Accounting Practice of the Accounting Standards Board Limited. 
  

 25The WPP Annual Bonus Deferral Programme

 Exhibit 4.40 
  

			
	 DATED                     
2006
	 	
		
	                                       
                                        
                                
  
 RULES OF THE WPP GROUP PLC ANNUAL
 BONUS DEFERRAL PROGRAMME
 Adopted by the Compensation Committee on 29
 November 2000 and amended by resolution of the
 Compensation Committee dated
18 August 2005
                                       
                                        
                                
	 	

 Hammonds 
 7
Devonshire Square Cutlers Gardens London EC2M 4YH DX 136546 Bishopsgate 2 
 Telephone +44 (0)870 839 0000 Fax +44 (0)870 839 1001

 Offices and Associated Offices Aosta Berlin Birmingham Brussels Hong Kong Leeds London Madrid Manchester Milan Munich Paris Rome Turin 

Website www.hammonds.com 

 CONTENTS 
  

					
	1	  	DEFINITIONS	  	1
			
	2	  	AWARDS AND INVESTED SHAREHOLDINGS	  	4
			
	3	  	FORFEITURE OF AWARDS	  	5
			
	4	  	DIVIDENDS, SCRIP DIVIDENDS AND VOTING RIGHTS	  	6
			
	5	  	TRANSFER, EXERCISE, LAPSE OF AWARDS AND INVESTED SHAREHOLDINGS	  	6
			
	6	  	CHANGE OF CONTROL	  	8
			
	7	  	VARIATIONS OF CAPITAL	  	8
			
	8	  	ADMINISTRATION AND AMENDMENT OF THE PLAN	  	9
			
	9	  	TERMINATION	  	10
			
	10	  	GOVERNING LAW	  	10
		
	SCHEDULE 1	  	11
		
	SCHEDULE 2	  	12
		
	SCHEDULE 3	  	13

  

 i 

 RULES OF THE WPP GROUP PLC 
 ANNUAL BONUS DEFERRAL PROGRAMME 
  

	1	DEFINITIONS 

  

	1.1	In these Rules the following words and expressions shall have, where the context so admits, the meanings set forth below: 

 “Acceptance Date” means the date (if any) by which an Eligible Employee must state a preference for the grant of a Bonus Share Award or a
Bonus Share Right made pursuant to Rule 2. 
 “Acceptance Notice” means the notice signed by an Eligible Employee in
accordance with Rule 2 to acquire an Invested Shareholding. 
 “Annual bonus” means the amount of annual bonus (if any),
before the deduction of any taxes and social taxes, allocated to an Eligible Employee in respect of annual bonus arrangements, operated by a Participating Company, in respect of a Base Year. 
 “Award” means a Basic Share Award, a Basic Share Right, a Bonus Share Award or a Bonus Share Right, as the case may be. 
 “Award Certificate” means a notice confirming an Award made to a Participant. 
 “Base Year” means a Financial Year of the Company. 
 “Basic Award” means the Annual Bonus that the Board determines that would have been paid to an Eligible Employee in respect of a Base Year, in respect of annual bonus arrangements, operated by a
Participating Company if the Eligible Employee had not expressed a preference to participate under this Program. 
 “Basic Share
Award” means an irrevocable contingent award of Shares, such number of Shares being determined by the Board on the Date of Award in accordance with Schedule 1. 
 “Basic Share Right” means an option to acquire Shares where the option price for all the Shares subject to the option shall be £1 (or such other amount determined by the Board) such number of
Shares being determined by the Board oh the Date of Award in accordance with Schedule 1. 
 “Board” means the board of
directors of the Company or a committee to whom they have delegated their powers for the purposes of this Program, which, where the circumstances require, shall include but not limited to the Compensation Committee. 
 “Bonus Share Award” means an irrevocable contingent award of Shares, such number of Shares being determined by the Board on the Date of
Award in accordance with Schedule 2. 
 “Bonus Share Right” means an option to acquire Shares where the option price for all
the Shares subject to the option shall be £1 (or such other amount determined by the Board) such number of shares being determined by the Board on the Date of Award in accordance with Schedule 2. 
  

 1 

 “Close Period” means such time as the directors or other employees of the Company are
prohibited from dealing in Shares, for whatever reason, in accordance with the “Model Code for Transactions” or such code as the Company may have adopted from time to time or such other statutory order, regulation or other prohibition from
dealing in Shares or rights over Shares; 
 “Company” means 
  

	 	(a)	in relation to any period before the Effective Date, Old WPP; and 

  

	 	(b)	in relation to any period on or after the Effective Date New WPP. 

 “Change of Control” means an occurrence where any person, partnership, corporation, trust or similar entity or group acquires in a transaction of a series of transactions more than 50% of the voting securities of the
Company but this term shall not include a change of control as a result of the Scheme. 
 “Date of Award” means the date on
which an Award is granted in accordance with the provisions of Rule 2. 
 “Dealing Day” means any day on which the London
Stock Exchange is open for the transaction of business. 
 “Dividend Shares” means Shares awarded under Rule 4.4. 

“Effective Date” means the date on which the Scheme becomes effective in accordance with Clause 7 of the Scheme of Arrangement,
expected to be 25 October 2005. 
 “Eligible Employee” means an executive director or employee of a Participating
Company who is eligible to receive an Annual Bonus. 
 “Exercise Period” means the period of ten years starting with the Date
of Award or such other period as may be determined by the Board prior to the making of an Award. 
 “Financial Year” means a
financial year of the Company, determined pursuant to Section 223 of the Companies Act 1985, provided that if the relevant financial year should not be a period of 12 months it should be such period of 12 months as the Board determines is
reasonable. 
 “Group” means the Company and its Subsidiaries together with any other body corporate nominated by the Board
for this purpose which is not under the control of any single person, but is under the control of two or more persons, one of whom being the Company and in relation to which either the Company is able (whether directly or indirectly) to exercise 20%
or more of its equity voting rights or has the power to control the composition of the board of directors of that body corporate. The expression “member of the Group” shall be construed accordingly. 
 “Invested Amount” means the amount of Net Annual Bonus with which an Eligible Employee purchases Shares pursuant to the Program; being a
multiple of 10%, but not less than 10%, of the Net Annual Bonus. 
  

 2 

 “Invested Shareholding” means such number of Shares as is purchased by or on behalf of
an Eligible Employee with his Invested Amount in accordance with these Rules (and in particular in accordance with Rule 2.5 and Schedule 3) and which he undertakes to hold pursuant to the terms of the Program for the Vesting Period applicable to any
relevant Bonus Share Award or Bonus Share Right. 
 “Market Value” means in relation to a Share, its value as calculated by
reference to its middle market quotation as derived from the Daily Official List of the London Stock Exchange published on the Dealing Day preceding the Date of Award (or at the discretion of the Board on such other date or dates as the Board deems
in its discretion to be reasonable) and in relation to a WPP Receipt, the average of the high and low prices reported by Nasdaq on the Date of Award (or at the discretion of the Board on such other date as the Board deems reasonable). 
 “Net Annual Bonus” means the amount of the Annual Bonus after the deduction of all taxes and/or employees’ social taxes properly
deductible therefrom (adjusted as the Board at its discretion deems reasonable to take account of tax allowances and exemptions). 
 “New WPP” means WPP 2005 plc a public limited company incorporated in England and Wales with registered number 5537577, which conditional on the Scheme becoming effective will be renamed WPP Group plc. 
 “Old WPP” WPP Group plc a public limited company incorporated in England and Wales with registered number 01003653, which conditional on
the Scheme becoming effective will be renamed WPP 2005 plc. 
 “Participant” means any Eligible Employee to whom an Award has
been granted. Reference to a Participant shall include, where the context so admits or requires, his personal representative(s). 
 “Participating Companies” means those companies in the Group which the Board determine shall be the participating companies. 
 “Participating Country” means the country to which the Program will be extended and consequently any Subsidiary of the Company which is registered in that country, unless the Board determines to
exclude that subsidiary. 
 “Period” means a period of 4 weeks. 
 “Program” means this Program which shall be known as the WPP Group plc Annual Bonus Deferral Program as constituted in accordance with
these Rules. 
 “Program Year” means a Financial Year of the Company commencing immediately after a Base Year. 
 “Rules” means the rules of this Program and includes any amendments effected in accordance with Rule 8 from time to time in force.

 “Scheme” means the scheme of arrangement set out in part 4 of the circular to share owners relating to the recommended
proposals for the introduction of a new parent company by means of a scheme of arrangement under section 425 of the Companies Act 1985 or with or subject to any modification, addition or condition approved or imposed by the High Court of Justice in
England and Wales 
  

 3 

 “Service Factor” means a number between zero and 1 determined by dividing the number of
Periods within the Vesting Period prior to the date of the Change of Control or, as the case may be, the date on which the Company passes a resolution for voluntary winding-up or the date on which an order is made for the compulsory winding-up of
the Company by the total number of Periods in the Vesting Period (provided that the Board shall have power in all cases to vary the resulting numbers, provided that it may never exceed 1). 
 “Shares” means fully paid ordinary shares in the capital of the Company or at the discretion of the Board a WPP Receipt. 
 “Subsidiary” means a company as defined by Section 736 of the Companies Act 1985. 
 “Tax Liability” means the amount of all taxes and/or primary social security taxes which any person would be required to account for to
any taxation authority by reference to an Award or an Invested Shareholding. 
 “Transfer” means the receipt of the Shares
which are the subject of an Award or an Invested Shareholding (and derivative terms shall be construed accordingly). 
 “Trustees” means the trustees for the time being of any employee benefit trust established for the benefit of some or all of the Eligible Employees. 
 “Vesting Period” means a period of four Program Years, (or such other period as is determined by the Board prior to a Date of Award),
commencing on the first date in the Program Year in which the Date of Award falls. 
 “WPP ADS” means an American depository
share representing Shares pursuant to any American depository share arrangement sponsored by the Company. 
 “WPP Receipt”
means an American Depository Receipt evidencing WPP ADSs. 
  

	1.2	Where the context so admits or requires words importing the singular shall include the plural and vice versa and words importing the masculine shall include the feminine.

  

	1.3	Reference in these Rules to any statutory provisions are to those provisions as amended, extended or re-enacted from time to time and shall include any regulations made thereunder.
The Interpretation Act 1978 shall apply to these Rules mutatis mutandis as if they were an Act of Parliament. 

  

	1.4	The headings to these Rules are for the sake of convenience only and shall be ignored when construing the Rules. 

  

	2	AWARDS AND INVESTED SHAREHOLDINGS 

  

	2.1	For each Base Year the Board shall select those Participating Companies whose Eligible Employees are to participate in the Program and shall decide in relation to each such Eligible
Employee: 

  

	 	(a)	the number of Shares (as determined in accordance with Schedule 1) which are to be the subject of any Basic Share Award or any Basic Share Right and the Vesting Period applicable
thereto; 

  

 4 

	 	(b)	subject to Rule 2.4, the number of Shares which are to be the subject of any Bonus Share Award or any Bonus Share Right (as determined in accordance with Schedule 2) and the Vesting
Period applicable thereto; and 

  

	 	(c)	whether an Eligible Employee may be invited to acquire an Invested Shareholding with some or all of their Net Annual Bonus for the Base Year and the Acceptance Date in relation to
such acquisition, provided that such invitation may only be accepted in relation to an Eligible Employee who is not granted a Basic Share Award or a Basic Share Right. 

  

	2.2	An Award Certificate shall be issued to each Participant specifying the number of Shares subject to the Award, the Vesting Period, the number of Shares in any Invested Shareholding,
and, in relation to a Basic Share Right or a Bonus Share Right, the Exercise Period. 

  

	2.3	No Award shall be granted: 

  

	 	(a)	unless an Eligible Employee is employed by a Participating Company at the Date of Award and is not under notice to leave at such date whether such notice has been given to or by the
Eligible Employee; and 

  

	 	(b)	unless otherwise agreed by the Board, during a Close Period. 

  

	2.4	To apply to acquire an Invested Shareholding, an Eligible Employee must return to the Board (or to such person as it directs) no later than the Acceptance Date:

  

	 	(a)	the Acceptance Notice, duly signed; and 

  

	 	(b)	confirmation of the method of payment of the Invested Amount by such method specified in the invitation. 

  

	2.5	By signing the Acceptance Notice the Eligible Employee will agree that his Invested Amount will be applied by the Trustees to purchase his Invested Shareholding on the Date of Award
(or at the discretion of the Board, on such other date as the Board deems reasonable) and that his Invested Shareholding will be held by the Trustees as his nominee pursuant to the Rules. At the discretion of the Board, his Invested Shareholding may
be calculated in accordance with Schedule 3. His Invested Amount may be converted at the discretion of the Board into pounds Sterling or US Dollars at the mid-market spot rate for that currency at the close of business as shown in the Financial
Times, on the Dealing Day immediately preceding the Date of Award (or at the discretion of the Board, on such other date as the Board deems reasonable). 

  

	2.6	If the Board decides not to grant any Award to an Eligible Employee who has paid an Invested Amount, that Invested Amount shall be returned to the Eligible Employee as soon as
practicable thereafter, and without any liability to pay interest or any other amount thereon. 

  

	3	FORFEITURE OF AWARDS 

  

	3.1	An Award shall be personal to a Participant and neither any Award, nor any rights under any Award may be transferred, assigned, pledged, charged or otherwise disposed of by a
Participant to any other person and if a Participant shall do, suffer or permit any such act or thing whereby he would or might be deprived of any rights under an Award, such rights, shall forthwith lapse. 

  

 5 

	3.2	Subject to Rule 5, Bonus Share Awards and Bonus Share Rights granted to a Participant in respect of an Invested Shareholding shall be granted contingently on the continuous holding
by or on behalf of a Participant of the Invested Shareholding during the Vesting Period. 

  

	3.3	Subject to Rule 5, during the Vesting Period the Participant may not withdraw, transfer, pledge, assign, charge or otherwise dispose of all or part of any Invested Shareholding
unless the Board, in its absolute discretion, determines otherwise; if a Participant shall do, suffer or permit any such act or thing whereby he would or might be deprived of any Invested Shareholding, the corresponding Bonus Share Award or Bonus
Share Rights shall forthwith lapse (unless the Board in its absolute discretion determines otherwise). 

  

	4	DIVIDENDS, SCRIP DIVIDENDS AND VOTING RIGHTS 

  

	4.1	Bonus Share Awards and Bonus Share Rights granted to a Participant in respect of an Invested Shareholding shall be granted contingently on the Participant waiving any right to all
dividends or scrip dividends declared in respect of the Invested Shareholding until such Invested Shareholding is Transferred to the Participant. 

  

	4.2	In relation to an Invested Shareholding, a Participant shall not be entitled to instruct the Trustees on: 

  

	 	(a)	how to vote or abstain from voting; and 

  

	 	(b)	whether to accept or reject any offer. 

  

	4.3	If dividends or scrip dividends are declared by reference to a record date prior to the Transfer in respect of any Awards, the dividends or scrip dividends shall belong and be paid
to the Trustees. 

  

	4.4	Where a dividend is declared by reference to a record date after the Date of Award and paid before the Transfer, the amount which would have been paid on the Shares subject to the
Basic Share Award, Basic Share Right and the Invested Shareholding will be used to acquire Dividend Shares (acquired by the Trustees at the best price reasonably available to them) calculated by reference to the dividend which would have been paid.

  

	4.5	The Trustees shall, at their discretion, be entitled to vote or abstain from voting in respect of the Shares which are the subject of any Award. 

  

	5	TRANSFER, EXERCISE, LAPSE OF AWARDS AND INVESTED SHAREHOLDINGS 

  

	5.1	The Shares subject to a Basic Share Award, a Bonus Share Award and an Invested Shareholding shall be Transferred to the Participant in full or in part as soon as reasonably
practicable after the final day of the Vesting Period together with such number of Dividend Shares, as the Board determines appropriate, earned in respect of the Basic Share Awards or Invested Shareholding subject to the provisions of this Rule 5
and Rule 6. No Shares shall be Transferred during any Close Period, but shall be Transferred as soon as reasonably practicable thereafter. 

  

	5.2	For the avoidance of doubt, the Participant is not, with the exception of Invested Shareholdings, the beneficial owner of any Shares awarded under this Program until such time as
they are Transferred, and only then will the Participant have the legal and beneficial ownership of the Shares. 

  

 6 

	5.3	A Basic Share Right or a Bonus Share Right may be exercised in whole or in part by the Participant during the Exercise Period by delivery to the Company (or to such other person as
it shall direct) of a notice in the form prescribed by the Board and signed by the Participant, together with the appropriate option price. The date of receipt of such notice shall be deemed to be the date of exercise of the right and the Shares,
together with such number of Dividend Shares as the Board determines appropriate, earned in respect of the Basic Share Rights, shall be Transferred as soon as reasonably practicable thereafter. A Basic Share Right or a Bonus Share Right shall lapse
and become of no effect at the expiry of the Exercise Period. 

  

	5.4	A Basic Share Right or a Bonus Share Right shall not become exercisable prior to the end of the Vesting Period and shall be subject to the provisions of this Rule 5 and Rule 6.

  

	5.5	If the Participant ceases employment with the Group for any reason in relation to a Basic Share Award, Invested Shareholding and Dividend Shares, the Shares shall be Transferred to
the Participant as soon as is reasonably practicable following the date of cessation, unless the Board in its absolute discretion, determines otherwise within a period of 14 days of the date of cessation. Without prejudice, it is intended that this
discretion will not normally be exercised in cases other than cessation of employment by reason of gross misconduct. 

  

	5.6	If the Participant ceases employment with the Group for any reason in relation to a Basic Share Right, the right shall become exercisable for a defined period unless, within 14 days
of the date of cessation of employment the Board, in its absolute discretion, determines otherwise, (without prejudice it is intended that this discretion will not normally be exercised in cases other than cessation of employment by reason of gross
misconduct). The defined period will commence 14 days after the date of cessation of employment and end on the earlier of 30 days later and the end of the Exercise Period. Thereafter the right shall lapse. 

  

	5.7	The Trustee may decide that, instead of the Shares to which the Participant would otherwise be entitled under this Program, the Participant will be paid the cash alternative. The
cash alternative will be determined using the following formula: 

 MV x N 
  

			
	 where MV
	 	is the Market Value of a Share on such date as the Board
may select falling within the period of 30 days following:
		
		 	 (i)     the end of the Vesting Period in respect of a Basic Share Award, a Bonus Share Award and an Invested
Shareholding; and

		
		 	 (ii)    the date of exercise in respect of a Basic Share Right or a Bonus Share Right; and

		
	 N
	 	is the number of Shares vesting under a Basic Share Award, a Bonus Share Award or an Invested Shareholding or in respect of a Basic Share Right or Bonus Share Right the number of rights being
exercised, together with such number of Dividend Shares as the Board determines appropriate earned in respect of the Basic Share Award, Invested Shareholding or Basic Share Right.

  
  
  

 7 

 As soon as reasonably possible after the Board has made its decision, subject to Rule 8.8, the Trustee
must pay the Participant the cash alternative (or arrange for it to be paid to him). 
  

	6	CHANGE OF CONTROL 

  

	6.1	If there is a Change of Control, other than a Change of Control arising as a result of the Scheme, the Trustees shall as soon as is reasonably practicable after the Change of
Control Transfer to the Participant: 

  

	 	(a)	all of his Invested Shareholding; or 

  

	 	(b)	all of the Shares subject to his Basic Share Award; and 

  

	 	(c)	the number of Shares subject to his Bonus Share Award multiplied by the Service Factor (and the remainder of the Award shall lapse and be of no effect); and

  

	 	(d)	all of his Dividend Shares 

  

	6.2	If the Company passes a resolution for voluntary winding up, or if an order is made for compulsory winding up of the Company, the Trustees shall as soon as is reasonably practicable
Transfer to the Participant: 

  

	 	(a)	all of his Invested Shareholding; or 

  

	 	(b)	all of the Shares subject to his Basic Share Award; and 

  

	 	(c)	the number of Shares subject to his Bonus Share Award multiplied by the Service Factor (and the remainder of the Award shall lapse and be of no effect); and

  

	 	(d)	all of his Dividend Shares. 

  

	6.3	In the circumstances set out in Rules 6.1 and 6.2, the Board shall immediately notify Participants of the relevant event and: 

  

	 	(a)	a Participant’s Basic Share Right shall become exercisable for a period of 60 days (or such other period as the Board determines appropriate) immediately following the relevant
event over all of the Shares subject to the right and thereafter the right shall lapse and be of no effect; and 

  

	 	(b)	the Participant’s Bonus Share Right shall become exercisable for the period of 60 days immediately following the relevant event over that number of Shares subject to the right
multiplied by the Service Factor and the remainder of the right shall lapse and be of no effect; and 

  

	 	(c)	to the extent that the rights are not exercised thereafter they shall lapse and become of no effect. 

  

	7	VARIATIONS OF CAPITAL 

  

	7.1	In the event of any capitalisation issue, rights issue, rights offer or the issue shares as consideration for an acquisition or any sub-division, consolidation, reduction or other
variation of the capital of the Company or any specie dividend, demerger or in such other circumstances as the Board determine, the Board may: 

  

	 	(a)	make such adjustment(s) to the Invested Shareholdings and the Awards, as the Board, in its absolute discretion, considers fair and reasonable; and 

  

 8 

	 	(b)	confirm to each Participant any such adjustment(s) made to his Invested Shareholdings and his Awards, 

 provided that in each case the Company’s auditors confirms that such adjustment is fair and reasonable. 
  

	8	ADMINISTRATION AND AMENDMENT OF THE PLAN 

  

	8.1	The Board, with the consent of the Trustees, may at any time alter or add to all or any of the provisions of the Program in any respect, provided that any alteration or addition
which would abrogate or adversely affect to any material extent the subsisting rights of a Participant shall not be made without the consent of such Participant. 

  

	8.2	Any matter pertaining or pursuant to the Program which is not dealt with by these Rules, and any uncertainty as to the meaning of these Rules, shall be determined or resolved by the
decision of the Board. Any such decision shall be final and conclusive. 

  

	8.3	The Company may (but shall not be obliged to) distribute to Participants copies of any notice or document sent by the Company to the holders of Shares. 

  

	8.4	No account shall be taken of Invested Shareholdings or the grant of Awards or rights in prospect under them for the purposes of any redundancy payments or severance scheme operating
within a member of the Group. 

  

	8.5	The rights and obligations of any individual under the terms of his office or employment with a member of the Group shall not be affected by his participation in the Program or any
right which he may have to participate therein, and an individual who participates therein shall waive all and any rights to compensation or damages in consequence of the termination of his office or employment with any such company for any reason
whatsoever insofar as those rights arise or may arise from this ceasing to have rights under or be entitled to Shares subject to any Award under the Program or any Invested Shareholding as a result of such termination or from the loss or diminution
in value of such rights or entitlements. 

  

	8.6	The Company shall bear the costs of establishing and administering the Program. 

  

	8.7	A Participant may at any time renounce an Award (in whole or in part) by serving notice in writing on the Board of such intention. The renunciation shall be effective from the date
of receipt of such notice by the Board. 

  

	8.8	In the event that a Tax Liability becomes due from any person (the “relevant person”) on the Transfer of Shares subject to an Award or an Invested Shareholding or
Dividend Shares or on the exercise of a Basic Share Right or a Bonus Share Right or on the payment of the cash alternative under Rule 5.7, no Transfer or payment will occur unless: 

  

	 	(a)	the relevant person is able to deduct an amount equal to the whole of the Tax Liability from the Participant’s net pay for the next pay period; or 

  

	 	(b)	the Participant has paid to the relevant person an amount equal to the Tax Liability; or 

  

 9 

	 	(c)	the sum of the amount that the Participant has paid to the relevant person in respect of the relevant person’s obligation to satisfy the Tax Liability and the total amount that
the relevant person is able to deduct from the Participant’s net pay for the next pay period is equal to or more than the Tax Liability; or 

  

	 	(d)	the Board or relevant Board determines otherwise. 

 In the
absence of Rules 8.8(a) to 8.8(d) applying, the Participant will be deemed to have given irrevocable instructions to the Company’s brokers (or any person acceptable to the Company) for the sale of sufficient Shares acquired under this Program
to realise an amount equal to the Tax Liability and the payment of the Tax Liability to the relevant person. 
  

	8.9	A Participating Company may provide money to the Trustees or any other person to enable them or him to acquire Shares to be held for the purposes of the Program, or enter into any
guarantee or indemnity for those purposes, to the extent permitted by the Companies Act 1985. 

  

	9	TERMINATION 

 The Board reserves the right to
terminate this Program at any time, but any rights of Participants then subsisting shall remain in force. 
  

	10	GOVERNING LAW 

 These Rules shall be governed by and
construed in accordance with English law. 
  

 10 

 SCHEDULE 1 
 The number of Shares subject to a Basic Share Award or a Basic Share Right granted to an Eligible Employee shall be calculated as follows: 
  

							
		  	N	  	=	  	BA
				
		  		  		  	 MV

				
	 Where
	  	N	  	=	  	 the number of Shares subject to such Award;

				
		  	BA	  	=	  	the Basic Award expressed in pounds sterling (or, at the discretion of the Board, US dollars), any currency conversion taking place at the mid-market spot rate for the relevant currency at the
close of business published by the Financial Times on the day preceding the Date of Award (or at the discretion of the Board, on such other date as the Board deems reasonable); and
				
		  	MV	  	=	  	 the Market Value of a Share.

  

 11 

 SCHEDULE 2 
 The number of Shares subject to a Bonus Share Award or a Bonus Share Right granted to an Eligible Employee shall be calculated as follows: 
  

									
	M	  	=	  	X	  	x	  	Y
					
		  		  		  		  	 Z

				
	Where	  	M	  	=	  	 the number of Shares subject to such Award;

					
		  		  	X	  	=	  	0.25 where an Eligible Employee is granted a Basic Share Award or Basic Share Right and where a Basic Share Award or Basic Share Right is not granted 0.4 (or such other multipliers determined by
the Board prior to the Date of Award, but not exceeding 1);
					
		  		  	Y	  	=	  	BA, where an Eligible Employee is granted a Basic Share Award or Basic Share Right and where a Basic Share Award or Basic Share Right is not granted IA;
					
		  		  	IA	  	=	  	 the Invested Amount;

					
		  		  	BA	  	=	  	 the meaning in Schedule 1; and

					
		  		  	Z	  	=	  	 the Market Value of a Share.

  

 12 

 SCHEDULE 3 
 The number of Shares acquired as an Invested Shareholding, if the Board exercises its discretion in Rule 2.5, shall be calculated as follows: 
  

							
	 Invested Shareholding
	  	=	  	IA
				
		    		  		  	 Z

				
	 Where
	    	IA	  	=	  	 the Invested Amount expressed in US dollars; and

				
		    	Z	  	=	  	 the Market Value of a WPP Receipt.

  

 13

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