Document:

ELAN CORPORATION, PLC

                          EMPLOYEE EQUITY PURCHASE PLAN

                       IRISH SHARESAVE OPTION SCHEME 2004

                                TABLE OF CONTENTS

1.    DEFINITIONS..............................................................2
2.    INVITATION FOR OPTIONS...................................................4
3.    APPLICATION FOR OPTIONS..................................................4
4.    SCALING DOWN.............................................................5
5.    GRANT OF OPTIONS.........................................................5
6.    INDIVIDUAL LIMIT.........................................................6
7.    SCHEME LIMITS ...........................................................6
8.    EXERCISE AND LAPSE OF OPTIONS ...........................................6
9.    METHOD AND EXTENT OF EXERCISE............................................8
10.   CHANGE IN CONTROL OF THE COMPANY ETC ....................................8
11.   OPTION ROLLOVER..........................................................9
12.   ADJUSTMENT OF OPTIONS...................................................10
13.   ALLOTMENT OR TRANSFER OF SHARES ON EXERCISE OF OPTIONS..................11
14.   RIGHTS ATTACHING TO SHARES ALLOTTED OR TRANSFERRED PURSUANT TO OPTIONS..11
15.   AVAILABILITY OF SHARES..................................................11
16.   ADMINISTRATION AND AMENDMENT............................................11
17.   GENERAL.................................................................12

                                       1

1.       DEFINITIONS

1.1.     In this Scheme, unless the context otherwise requires, the following
         words and expressions have the following meanings, namely:

         ASSOCIATED COMPANY means an associated company of the Company within
         the meaning given to those words by section 432 of the Taxes Act except
         that, for the purposes of paragraph 24 of Schedule 12A, sub section (1)
         of that section will have effect with the omission of the words "or at
         any time within one year previously";

         BOARD means the board of directors of the Company or a duly authorised
         committee thereof;

         BONUS DATE means in relation to an Option:

         1.1.1.   where the Option is linked to a three year Savings Contract,
                  the earliest date on which the bonus is payable under that
                  Savings Contract (that is, after making 36 monthly
                  contributions);

         1.1.2.   where the Option is linked to a five year Savings Contract
                  under which the Option Holder has elected to receive the five
                  year bonus, the earliest date on which the five year bonus is
                  payable under that Savings Contract (that is, after making 60
                  monthly contributions); or

         1.1.3.   where the Option is linked to a five year Savings Contract
                  under which the Option Holder has elected to receive the seven
                  year bonus, the earliest date on which the seven year bonus is
                  payable under that Savings Contract (that is, the second
                  anniversary of the payment of the five year bonus, which is
                  paid after making 60 monthly contributions);

         CAPITAL REORGANISATION means any variation in the share capital or
         reserves of the Company (including, without limitation, by way of
         capitalisation issue, rights issue, sub-division, consolidation or
         reduction);

         COMPANY means Elan Corporation plc;

         CONTINUOUS SERVICE has the same meaning as in the First Schedule to the
         Minimum Notice and Terms Employment Act, 1973 with the exception that
         paragraph 8 thereof will not apply;

         CONTROL has the meaning given to that word by section 432 of the Taxes
         Act;

         DATE OF GRANT means the date on which an Option is granted;

         DEALING DAY means any day on which the Stock Exchange is open for the
         transaction of business;

         ELIGIBLE EMPLOYEE means

         1.1.1.   any individual who, at the Date of Grant and date of exercise
                  of an Option:

                  (1) is an employee or full-time director of one or more
                      Participating Companies;

                  (2) is chargeable to tax in respect of his employment or
                      office under

                                       2

                  Schedule E; and

                  (3) has been in Continuous Service with one or more
                      Participating Companies for such period as the Board may
                      determine (not exceeding three years) prior to the Date of
                      Grant; and

         1.1.2.   any other individual who, at the Invitation Date, is an
                  employee or director of one or more Participating Companies
                  and who is nominated by the Board as eligible to participate
                  in the Scheme in respect of any one or more grants of Options;

         EXERCISE PRICE means the price per Share payable on the exercise of an
         Option as determined by the Board (subject to adjustment under rule 12)
         but which shall not be less than:

         1.1.1.   75% per cent. of the middle market quotation for a Share as
                  derived from the Stock Exchange on the Dealing Day immediately
                  before the Invitation Date; or

         1.1.2.   in the case of any Option under which Shares may be issued,
                  the nominal value of a Share;

         GRANT PERIOD means the period of 42 days commencing on any of the
         following:

         1.1.1.   the date of Revenue approval of the Scheme;

         1.1.2.   any day on which the Board resolves that circumstances exist
                  which justify the grant of Options;

         1.1.3.   any day on which any change to the legislation affecting
                  savings-related share option schemes approved by the Revenue
                  under the Taxes Act is proposed or made; or

         1.1.4.   the day immediately following the day on which the Company
                  makes an announcement of its results for the last preceding
                  financial year, half year or other period;

         GROUP means the Company and the Subsidiaries and MEMBER OF THE GROUP
         will be construed accordingly;

         INVITATION DATE means the date on which an invitation to apply for an
         Option is issued;

         MINIMUM AMOUNT means the amount of the monthly contribution to be paid
         under the Savings Contract being not less than (euro)12 or such other
         minimum amount as may be permitted under paragraph 25(2)(b) of Schedule
         12A from time to time;

         OPTION means a right granted under the Scheme to subscribe for or
         purchase Shares;

         OPTION HOLDER means any individual who holds a subsisting Option
         (including, where the context permits, the legal personal
         representatives of a deceased Option Holder);

         PARTICIPATING COMPANY means the Company and each Subsidiary which has
         been nominated by the Board as a Participating Company for the purposes
         of the Scheme;

         PLAN means the Elan Corporation, plc Employee Equity Purchase Plan;

         PLAN ADMINISTRATOR has the same meaning as set out in Section 11.1 of
         the Plan;

                                       3

         SAVINGS CONTRACT means a contract under a certified contractual savings
         scheme, within the meaning of section 519C of the Taxes Act, approved
         by the Revenue for the purpose of Schedule 12A;

         SCHEDULE 12A means Schedule 12A to the Taxes Act;

         SCHEME means this Irish Sharesave Option Scheme 2004 of the Company as
         amended from time to time, being adopted by the Board as a schedule to
         the Plan;

         SHARE OPTION SCHEME means any employee share option scheme established
         by the Company;

         SHARES means fully paid and irredeemable ordinary shares in the capital
         of the Company, which comply with the conditions in paragraphs 11 to 15
         of Schedule 12A, or shares representing those shares following any
         Capital Reorganisation;

         SPECIFIED AGE means 65 years of age;

         STOCK EXCHANGE means the New York Stock Exchange;

         SUBSIDIARY means any subsidiary of the Company within the meaning of
         section 155 of the Companies Act, 1963 over which the Company has
         Control;

         TAXES ACT means the Taxes Consolidation Act, 1997;

         TRUSTEE means the trustees or trustee for the time being of any
         employee share trust established by the Company from time to time.

1.2.     Where the context permits, the singular includes the plural and vice
         versa, and the masculine includes the feminine. Headings will be
         ignored in construing the Scheme.

1.3.     References to any act of the Oireachtas include any modification,
         amendment or re-enactment thereof.

2.       INVITATION FOR OPTIONS

2.1.     The Board may, during a Grant Period, invite all Eligible Employees to
         apply for Options at the Exercise Price, but no invitation may be
         issued to any Eligible Employee who is excluded from participation in
         the Scheme by paragraph 8 of Schedule 12A.

2.2.     Subject to the specific provisions contained in the Scheme, the form,
         manner and timing of invitations to apply for Options, the number of
         Shares in respect of which invitations are made on any date and whether
         the Options will be three-, five- or seven-year Options (or any of
         them, at the election of Eligible Employees), will be at the absolute
         discretion of the Board. The invitation may either state the Exercise
         Price or (provided a mechanism exists by which the Exercise Price will
         be determined by the Date of Grant) invite applications by reference to
         amounts of monthly savings.

3.       APPLICATION FOR OPTIONS

3.1.     If an Eligible Employee wishes to apply for an Option he must, within
         such period after the Invitation Date as is stated in the invitation
         (which must not be less than 14 days), deliver to the Company (or its
         appointed agent) or the Trustee a duly completed enrolment form
         together with a duly completed application for a Savings Contract in
         the

                                       4

         form prescribed by the Board on which the Eligible Employee must have
         indicated the Bonus Date on which he intends to apply for repayment
         thereunder.

3.2.     The application for an Option will be deemed to be for an Option over
         the largest whole number of Shares which can be acquired at the
         Exercise Price with the expected repayment, including any relevant
         bonus, under the related Savings Contract at the appropriate Bonus
         Date.

4.       SCALING DOWN

4.1.     If valid applications are received for Options over a number of Shares
         in excess of that which the Board has determined to make available on a
         particular occasion or in excess of any limitation under rule 7, the
         Board may scale down applications in accordance with the following
         successive steps (or such other method as may be agreed between the
         Board and the Revenue Commissioners at any time prior to the Date of
         Invitation) to the extent necessary to eliminate the excess:

         4.1.1.   if the repayment under the Savings Contract would otherwise be
                  taken as including the seven year bonus, it will be taken to
                  include a bonus but not the seven year bonus;

         4.1.2.   unless rule 4.1.1 applies, the amount of the monthly savings
                  contribution chosen by each applicant will be taken as reduced
                  pro rata (or, if the Board so determines on a basis which
                  reduces larger monthly savings contributions by a greater
                  amount than smaller monthly contributions) to the extent
                  necessary;

         4.1.3.   the amount of any monthly savings contribution chosen by an
                  applicant which exceeds such amount as the Board may determine
                  (not being less than the Minimum Amount) will be taken as
                  reduced to such amount;

         4.1.4.   if the repayment under the Savings Contract would otherwise be
                  taken as including a bonus, it should be taken as not
                  including a bonus; and

         4.1.5.   applications will be selected by lot, each based on a monthly
                  savings contribution of the Minimum Amount and the inclusion
                  of no bonus in the repayment under the Savings Contract.

4.2.     If the number of Shares available is insufficient to enable an Option
         based on monthly savings contributions of the Minimum Amount and the
         inclusion of no bonus in the repayment under the Savings Contract to be
         granted to each Eligible Employee making a valid application, the Board
         may, as an alternative to selecting by lot, determine in its absolute
         discretion that no Options will be granted on that occasion.

4.3.     If applications are scaled down, the monthly contributions under
         Savings Contracts which Eligible Employees have chosen will, where
         necessary, be scaled down as appropriate.

4.4.     If, in applying the scaling down provisions contained in rule 4.1, the
         Board considers that it would be administratively impracticable for
         Options to be granted within the 30 day period referred to in rule 5.1,
         the Board may extend that period by not more than twelve days.

5.       GRANT OF OPTIONS

5.1.     The Board may, subject to any scaling down, on a single date which will
         not be later than

                                       5

         the 30th day after the earliest date by reference to which the Exercise
         Price was calculated, grant all (but not some of) the Options for which
         valid application has been made by Eligible Employees (provided that
         they remain Eligible Employees on the Date of Grant).

5.2.     As soon as practicable after the Date of Grant, the Board or the
         Trustee shall procure the issue of an Option certificate to each Option
         Holder.

5.3.     Options shall be granted in consideration of Eligible Employees
         agreeing to enter into Savings Contracts. No cash payment shall be made
         for the grant of an Option.

5.4.     No Option shall be granted under the Scheme 10 years after the date of
         approval of the Scheme by the Board.

5.5.     Every Option granted hereunder will be personal to the Option Holder
         and, except to the extent necessary to enable a personal representative
         to exercise the Option following the death of an Option Holder, neither
         the Option nor the benefit thereof may be transferred, assigned,
         charged or otherwise alienated. Any transfer of an Option otherwise
         than as permitted under this rule 5.5 will cause the Option to lapse.

6.       INDIVIDUAL LIMIT

         No individual shall be granted an Option if the entry into the related
         Savings Contract would result in the monthly contributions under that
         Savings Contract, when added to the sum of his monthly contributions
         under any other subsisting Savings Contracts (whether or not linked to
         a subsisting Option granted under a scheme approved under Schedule
         12A), exceeding (euro)320 (or such greater amount as is for the time
         being permitted under paragraph 25(2)(a) of Schedule 12A and approved
         by the Board).

7.       SCHEME LIMITS

7.1.     No Option to acquire Shares shall be granted if the result of that
         grant would be that the aggregate number of Shares that could be
         delivered on the exercise of that Option and any other Options granted
         at the same time, when added to the number of Shares that could be
         delivered on the exercise of any other subsisting share options granted
         during the preceding ten years under the Plan (including the Scheme and
         any other schedules to the Plan) would exceed 1,500,000 Shares.

8.       EXERCISE AND LAPSE OF OPTIONS

8.1.     An Option may only be exercised:

         8.1.1.   during the six months following the Bonus Date relating to it;

         8.1.2.   by an Option Holder who is not ineligible to participate in
                  the Scheme by virtue of paragraph 8 of Schedule 12A; and

         8.1.3.   by an Option Holder who is, at the date of exercise, a
                  director or employee of a Participating Company,

                  and, if not exercised, will lapse at the end of the six month
                  period following the Bonus Date.

                                       6

8.2.     Where an Option Holder ceases to be a director or employee of a
         Participating Company before the expiry of six months after the Bonus
         Date:

         8.2.1.   on retirement at the Specified Age or by reason of redundancy
                  (within the meaning of the Redundancy Payments Act 1967 to
                  2001), injury or disability, he may exercise any outstanding
                  Options within six months of the date on which his employment
                  ceased, failing which exercise the Options shall lapse
                  automatically, but the Options may not be exercised more than
                  six months following the relevant Bonus Date;

         8.2.2.   on:

                  (1)   his employing company ceasing to be under the Control of
                        the Company; or

                  (2)   the business (or part of a business) in which he is
                        employed being transferred to a person who is neither an
                        Associated Company nor a company over which the Company
                        has Control,

                        he may exercise any outstanding Options within six
                        months of the date on which his employment ceased,
                        failing which exercise the Options will lapse
                        automatically, but the Options may not be exercised more
                        than six months following the Relevant Bonus Date;

         8.2.3.   on cessation of employment for any reason (other than
                  dismissal for cause) he may exercise any outstanding Options
                  in respect of which more than three years have passed since
                  the Date of Grant within six months of the date on which his
                  employment ceased, failing which exercise the Options will
                  lapse automatically, but the Options may not be exercised more
                  than six months following the relevant Bonus Date; or

         8.2.4.   in any circumstances other than those set out in rules 8.2.1,
                  8.2.2, 8.2.3 and 8.4, his Options will lapse automatically.

                  For the avoidance of doubt, an Option exercisable under this
                  rule 8.2 may lapse at an earlier date by virtue of rule 10.

8.3.     Where an Option Holder remains in employment with a Participating
         Company on attaining the Specified Age he may exercise his Options
         within six months of attaining that age: Provided that the Options may
         not be exercised more than six months following the relevant Bonus
         Date.

8.4.     If an Option Holder dies while in service or at any time after leaving
         service when he holds an Option, such Options may be exercised by his
         personal representatives at any time within the twelve month period
         following:

         8.4.1.   the date of death, if such death occurred before the relevant
                  Bonus Date; or

         8.4.2.   the Bonus Date, in the event of his death within six months
                  after the relevant Bonus Date,

                  failing which exercise, the Options will lapse automatically.
                  For the avoidance of doubt, an Option exercisable under this
                  rule 8.4 will not lapse prior to the expiry of the specified
                  twelve month period by virtue of rule 8.2 but may lapse at an
                  earlier date by virtue of rule 10.

                                       7

8.5.     For the purposes of rule 8.2, an Option Holder will not be treated as
         ceasing to be a director or employee of a Participating Company until
         he ceases to hold an office or employment in the Company or any company
         over which the Company has Control or any Associated Company.

8.6.     Notwithstanding rule 8.1.3, if, at the Bonus Date, an Option Holder
         holds an office or employment in a company which is not a Participating
         Company but is an Associated Company or a company over which the
         Company has Control, Options may be exercised within (but no later
         than) six months following the Bonus Date.

8.7.     If, before the Option has become exercisable, the Option Holder:

         8.7.1.   gives notice, or is deemed to have given notice, under the
                  terms of the related Savings Contract that he intends to stop
                  paying contributions to that Savings Contract; or

         8.7.2.   makes an application for repayment of the related Savings
                  Contract,

                  the Option will automatically lapse.

8.8.     If an Option Holder is declared bankrupt or enters into any general
         composition with or for the benefit of his creditors including an
         arrangement under the Bankruptcy Act, 1988, or a voluntary arrangement
         with his creditors his Options will automatically lapse.

9.       METHOD AND EXTENT OF EXERCISE

9.1.     An Option may only be exercised with monies not exceeding the amount
         repaid under the related Savings Contract, including any bonus or
         interest as at the date of repayment. No account will be taken of any
         repayment of any contribution the due date of which arises after the
         date of repayment, or any bonus or interest in respect of that
         contribution.

9.2.     An Option Holder may exercise his Option on one occasion only, in whole
         or in part, by giving notice in writing to the Company or to such other
         person (including, for the avoidance of doubt, the Trustee), as the
         Company may direct with the prescribed details specifying the number of
         Shares in respect of which the Option is being exercised and enclosing
         payment in full of the aggregate Exercise Price of those Shares
         together with evidence of closure of the related Savings Contract. The
         date of exercise will be the date of receipt by the Company (or such
         other person as the Company may direct) of the written exercise
         details. If the Option is exercised in respect of some only of the
         Shares comprised in the Option, the Option in respect of the balance
         will thereupon lapse automatically.

10.               CHANGE IN CONTROL OF THE COMPANY ETC

10.1.    If at any time any person obtains Control of the Company as a result of
         making:

         10.1.1.  a general offer to acquire the whole of the issued ordinary
                  share capital of the Company which was made on a condition
                  such that if it was satisfied the person making the offer
                  would have Control of the Company; or

         10.1.2.  a general offer to acquire all the Shares,

         all outstanding Options may, be exercised within six months of the time
         when the offeror has obtained Control of the Company and any condition
         subject to which the offer is

                                       8

         made has been satisfied, failing which exercise the Options will,
         without prejudice to the operation of rule 11, lapse automatically:
         Provided that (i) an Option may not be exercised more than six months
         after the relevant Bonus Date and (ii) if an event described in rule
         10.2 occurs during the six month period, the period during which an
         Option may be exercised will be the shorter of the periods specified
         under this rule 10.1 and rule 10.2. For the purposes of this rule 10.1
         a person will be deemed to have acquired Control of the Company if he
         and others acting in concert with him have together obtained Control of
         it.

10.2.    If any person becomes bound or entitled to acquire shares in the
         Company under section 204 of the Companies Act, 1963, Options may, be
         exercised at any time when that person remains so bound or entitled,
         failing which exercise the Options will, without prejudice to the
         operation of rule 11, lapse automatically, but an Option may not be
         exercised more than six months after the relevant Bonus Date.

10.3.    If under section 201 of the Companies Act, 1963 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, any outstanding
         Options may be exercised within six months of the court sanctioning the
         compromise or arrangement, failing which exercise the Options will,
         without prejudice to the operation of rule 11, lapse automatically:
         Provided that (i) an Option may not be exercised more than six months
         after the relevant Bonus Date and (ii) an Option will not without the
         consent of the Board be exercisable under this rule 10.3 if the purpose
         and effect of a scheme of arrangement is to create a new holding
         company for the Company, such company having substantially the same
         shareholders and proportionate shareholdings of those of the Company
         immediately prior to the scheme of arrangement.

10.4.    If a resolution for a voluntary winding-up of the Company is passed,
         then any outstanding Options may, subject to rules 8.1.2, 8.1.3, 8.2
         and 8.3, be exercised within [six] months of the passing of the
         resolution, failing which exercise the Options will lapse
         automatically.

11.      OPTION ROLLOVER

11.1.    If any company (the ACQUIRING COMPANY):

         11.1.1.  obtains Control of the Company as a result of making:

                  (1)   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 satisfied the acquiring
                        company will have Control of the Company; or

                  (2)   a general offer to acquire all the Shares,

         11.1.2.  obtains Control of the Company in pursuance of a compromise or
                  arrangement sanctioned by the Court under section 201 of the
                  Companies Act 1963; or

         11.1.3.  becomes bound or entitled to acquire shares in the Company
                  under section 204 of that Act,

                  each Option Holder may at any time within the appropriate
                  period (which will be construed in accordance with paragraph
                  16 of Schedule 12A), by agreement with the acquiring company
                  and, in the case of an Option under which Shares are to be
                  transferred, the person holding the Shares to which his Option
                  relates, release

                                       9

                  any Option 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
                  another company falling within paragraph 11(b) or (c) of
                  Schedule 12A) (the NEW GRANTOR).

11.2.    The new option will not be regarded for the purposes of rule 11.1 as
         equivalent to the old option unless the conditions set out in paragraph
         16(3) of Schedule 12A are satisfied and, in relation to the new option,
         the provisions of the Scheme will be construed as if:

         11.2.1.  the new option were an option granted under the Scheme at the
                  same time as the old option;

         11.2.2.  references to the Company in rules 9 to 17 were references to
                  the new grantor, although references to Participating Company
                  shall continue to be construed as if references to the Company
                  within this definition were to Elan Corporation,plc;

         11.2.3.  references to the Board in rules 9, 12, and 17 were references
                  to the board of directors of the new grantor;

         11.2.4.  references to Shares were references to shares in the new
                  grantor;

         11.2.5.  the Savings Contract made in connection with the old option
                  had been made in connection with the new option; and

         11.2.6.  the Bonus Date in relation to the new option was the same as
                  that in relation to the old option.

12.      ADJUSTMENT OF OPTIONS

         In the event of any Capital Reorganisation, the Exercise Price and the
         number of Shares comprised in an Option may be adjusted in such manner
         as the Board may determine, but nevertheless:

         12.1.    no adjustment will take effect without the prior approval:

         12.1.1.  of the Revenue Commissioners in writing; and

         12.1.2.  in respect of Options under which Shares are to be
                  transferred, the person holding the Shares to which the
                  Options relate (such approval not to be unreasonably
                  withheld);

12.2.    no adjustment shall be made pursuant to this rule which would increase
         the aggregate Exercise Price of any Option;

12.3.    except as provided in this rule 12.3, no adjustment may have the effect
         of reducing the Exercise Price to less than the nominal value of a
         Share. Where an Option subsists over both issued and unissued Shares,
         any such adjustment may only be made if the reduction of the Exercise
         Price of Options over both issued and unissued Shares can be made to
         the same extent. Any adjustment to the Exercise Price of Options over
         unissued Shares will only be made if and to the extent that the Board
         is 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 exercisable exceeds the adjusted Exercise Price.
         The Board may apply such sum in paying up such amount on such Shares
         and so that ,on exercise of any Option in respect of which such
         reduction shall have been made,

                                       10

         the Board shall capitalise such sum (if any) and apply the same in
         paying up such amount as aforesaid; and

12.4.    no adjustment shall be made pursuant to this rule (other than on a
         capitalisation issue) unless and until the auditors for the time being
         of the Company (acting as experts not arbitrators) have confirmed in
         writing to the Board that such adjustment is in their opinion fair and
         reasonable.

13.      ALLOTMENT OR TRANSFER OF SHARES ON EXERCISE OF OPTIONS

         Subject to any necessary consents, to payment being made for the Shares
         and to compliance by the Option Holder with the terms of the Scheme,
         not later than 30 days after receipt of any notice of exercise in
         accordance with rule 9.2, the Company shall either allot and issue or
         procure the transfer by the Trustee of Shares to the Option Holder (or
         to his nominee). The Company or the Trustee shall (unless the Shares
         are to be issued in uncertificated form) as soon as practicable deliver
         to the Option Holder (or such nominee) a definitive share certificate
         or other evidence of title in respect of such Shares. Where the Shares
         are issued or transferred to a nominee of the Option Holder, the Option
         Holder will remain the beneficial owner of the Shares.

14.      RIGHTS ATTACHING TO SHARES ALLOTTED OR TRANSFERRED PURSUANT TO OPTIONS

14.1.    All Shares allotted or transferred upon the exercise of an Option will
         rank pari passu in all respects with the Shares in issue at the date of
         exercise save as regards any rights attaching to such Shares by
         reference to a record date prior to the date of exercise.

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

15.      AVAILABILITY OF SHARES

15.1.    The Company or, where relevant pursuant to the rules of the Scheme, the
         Trustees shall at all times keep available for issue sufficient
         authorised but unissued Shares to permit the exercise of all
         unexercised Options under which Shares may be allotted or shall
         otherwise procure that Shares are available for transfer in
         satisfaction of the exercise of Options.

15.2.    If and so long as the Shares are listed on the Stock Exchange, the
         Company shall, at its expense, where necessary, make application to the
         Stock Exchange for admission of Shares delivered on the exercise of any
         Option.

16.      ADMINISTRATION AND AMENDMENT

16.1.    The decision of the Board will be final and binding in all matters
         relating to the Scheme, and it may at any time discontinue the grant of
         further Options or amend any of the provisions of the Scheme in any way
         it thinks fit: but nevertheless:

         16.1.1.  at a time when the Scheme is approved by the Revenue
                  Commissioners, and if such approved status is to be
                  maintained, no amendment may take effect without the prior
                  written approval of the Revenue Commissioners (and if such
                  approved

                                       11

                  status is not to be maintained, the Company shall notify the
                  Revenue Commissioners of the relevant amendment);

         16.1.2.  except as herein provided, the Board shall not make any
                  amendment (not being an amendment that is necessary or
                  desirable in order to maintain Revenue approval of the Scheme)
                  that would materially prejudice the interests of existing
                  Option Holders except with the prior consent or sanction of
                  Option Holders who, if they exercised their Options in full,
                  would thereby become entitled to not less than three-quarters
                  of all the Shares which would fall to be allotted or
                  transferred upon exercise in full of all outstanding Options;

         16.1.3.  unless the Board otherwise determines, no amendment to the
                  advantage of Eligible Employees or Option Holders may be made
                  to:

                  (1)   the definition of Eligible Employee in rule 1.1;

                  (2)   the limitations on the number of Shares subject to the
                        Scheme;

                  (3)   the maximum entitlement for any Eligible Employee under
                        the Scheme;

                  (4)   the basis for determining an Eligible Employee's
                        entitlement to Shares under the Scheme;

                  (5)   the terms of Shares to be provided under the Scheme; or

                  (6)   the adjustments to Options, under rule 12, in the event
                        of a Capital Reorganisation,

         without the prior approval of the Company in general meeting, except in
         the case of minor amendments to benefit the administration of the
         Scheme, to take account of a change in legislation or to obtain or
         maintain favourable tax, exchange control or regulatory treatment for
         Eligible Employees and Option Holders or any member of the Group; and

         16.1.4.  without prejudice to any provision of the Scheme which
                  provides for the lapse of an Option, the Board may not cancel
                  an Option unless the Option Holder agrees in writing to such
                  cancellation.

16.2.    The Board may delegate such of its functions under the Scheme as it
         determines to the Plan Administrator, including:

         16.2.1.  to determine the Exercise Price in respect of any grant of
                  Options;

         16.2.2.  to determine whether and to what extent Options are granted;

         16.2.3.  to approve documentation for use in connection with the
                  Scheme;

         16.2.4.  to construe and interpret the terms of the Scheme;

         16.2.5.  to prescribe, amend and rescind rules and regulations relating
                  to the Scheme; and

         16.2.6.  to make all other determinations deemed necessary or advisable
                  for the operation and administration of the Scheme.

                                       12

17.      GENERAL

17.1.    Any Participating Company may provide money to the Trustee or any other
         person to enable them or him to acquire Shares to be held for the
         purposes of the Scheme, or enter into any guarantee or indemnity for
         those purposes, to the extent not prohibited by law.

17.2.    The rights and obligations of an Option Holder under the terms and
         conditions of his office or employment will not be affected by his
         participation in the Scheme or any right he may have to participate in
         the Scheme. An individual who participates in the Scheme waives all and
         any rights to compensation or damages in consequence of the termination
         of his office or employment with any company for any reason whatsoever
         (whether or not such termination arises from a breach by the employer
         of the Option Holder's employment contract) insofar as those rights
         arise, or may arise, from his ceasing to have rights under or be
         entitled to exercise any Option under the Scheme as a result of such
         termination or from the loss or diminution in value of such rights or
         entitlements. If necessary, the Option Holder's terms of employment
         shall be varied accordingly.

17.3.    The existence of any Option shall not affect in any way the right or
         power of the Company or its shareholders to make or authorise any or
         all adjustments, recapitalisations, reorganisations or other changes in
         the Company's capital structure, or any merger or consolidation of the
         Company, or any issue of shares, bonds, debentures, preferred or prior
         preference stocks ahead of or convertible into, or otherwise affecting
         the Shares or the rights thereof, or the dissolution or liquidation of
         the Company or any sale or transfer of all or any part of its assets or
         business, or any other corporate act or proceeding, whether of a
         similar character or otherwise.

17.4.    Any notice or other document required to be given under or in
         connection with the Scheme may be delivered to an Option Holder or sent
         by post to him at his home address according to the records of his
         employing company or such other address as may appear to the Company to
         be appropriate. Notices sent by post will be deemed to have been given
         on the day following the date of posting. Any notice or other document
         required to be given to the Company or the Trustee under or in
         connection with the Scheme may be delivered or sent by post to it at
         its registered office (or such other place or places as the Board may
         from time to time determine and notify to Option Holders).

17.5.    The Company, or where the Board so directs any Subsidiary, shall pay
         the appropriate stamp duty on behalf of the Option Holders in respect
         of any transfer of Shares on the exercise of the Options.

17.6.    Benefits under this Scheme will not be pensionable.

These rules will be governed by, and construed in accordance with, the laws of
Ireland.ELAN CORPORATION, PLC

                          EMPLOYEE EQUITY PURCHASE PLAN

                                   SCHEDULE 2

                             UK SHARESAVE PLAN 2004

Directors' Adoption:
29 October 2004

Revenue Approval:
22 November 2004

IR Reference:
SRS2915

[LINKLATERS LOGO OMITTED]

One Silk Street
London EC2Y 8HQ

Telephone (44-20) 7456 2000
Facsimile (44-20) 7456 2222

Ref Steve Kavanagh

                                TABLE OF CONTENTS

CONTENTS                                                                    PAGE

1        Definitions...........................................................1

2        Invitations...........................................................2

3        Application...........................................................3

4        Scaling down..........................................................4

5        Option Price..........................................................4

6        Grant of Options......................................................5

7        Plan limits...........................................................6

8        Variations in share capital...........................................6

9        Exercise and lapse - general rules....................................6

10       Exercise and lapse - exceptions to the general rules..................7

11       Exchange of Options...................................................9

12       Exercise of Options..................................................10

13       General..............................................................11

14       Changing the Plan and termination....................................14

15       Governing law........................................................15

                                       i

            RULES OF THE ELAN CORPORATION, PLC UK SHARESAVE PLAN 2004

1        DEFINITIONS

1.1      MEANINGS OF WORDS USED
         In these Rules:

         "ACQUIRING COMPANY" is any company which has obtained Control of the
         Company or has become entitled and bound as mentioned in Rule 10.6
         (Section 429 notice) as a result of events specified in Rule 10.5
         (Takeovers) or Rule 10.7 (Company reconstructions);

         "ASSOCIATED COMPANY" has the meaning given to it by paragraph 47(1) of
         Schedule 3 to ITEPA;

         "BONUS DATE" means the date on which the bonus becomes payable under
         the terms of the relevant Savings Contract;

         "BUSINESS DAY" means a day on which the London Stock Exchange (or, if
         relevant and if the directors determine, any stock exchange nominated
         by the directors on which the Shares are traded) is open for the
         transaction of business;

         "COMPANY" means Elan Corporation, plc;

         "CONTRIBUTION" means a contribution under a Savings Contract;

         "CONTROL" has the meaning given to it by Section 840 of the Taxes Act;

         "DATE OF GRANT" means the date on which an Option is granted;

         "DIRECTORS" means the board of directors of the Company or a duly
         authorised committee of the Board or any other duly authorised person;

         "ELIGIBLE EMPLOYEE" means any person who satisfies the conditions set
         out below. The conditions are that the person:

         (i)     EITHER is an employee (but not a director) of a Participating
                 Company, or is a director of a Participating Company who is
                 required to work at least 25 hours a week (excluding meal
                 breaks); and

         (ii)    has earnings in respect of his office or employment within
                 paragraph (i) above which are general earnings (or would be if
                 there were any) to which Section 15 or Section 21 of ITEPA
                 applies; and

         (iii)   has such qualifying period (if any) of continuous service (not
                 exceeding five years prior to the Date of Grant) as the
                 Directors may from time to time determine;

         In addition, it means any person who is an executive director or
         employee of a Participating Company who is nominated by the Directors
         (or is nominated as a member of a category of such executive directors
         or employees).

         However, the definition of "Eligible Employee" does not include anyone
         who is excluded from participation because of paragraph 11 of Schedule
         3 to ITEPA (material interest provisions);

                                        1

         "EMPLOYEE EQUITY PURCHASE PLAN" means the Elan Corporation, plc
         Employee Equity Purchase Plan;

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

         "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 including his personal
         representatives;

         "OPTION PRICE" means the amount payable for each Share on the exercise
         of an Option calculated as described in Rule 5 (Option price);

         "PARTICIPATING COMPANIES" means:

         (i)     the Company; and

         (ii)    any Subsidiary designated by the Directors; and

         (iii)   any jointly-owned company (within the meaning of paragraph 46
                 of Schedule 3 to ITEPA) designated by the Directors.

          "PLAN" means this plan known as "The Elan Corporation, plc UK
         Sharesave Plan 2004" as changed from time to time;

         "RULES" means the rules of the Plan as changed from time to time;

         "SAVINGS CONTRACT" means a contract under a certified contractual
         savings plan, within the meaning of Section 326 of the Taxes Act, which
         is approved by the Inland Revenue for the purposes of Schedule 3 to
         ITEPA;

         "SHARES" means fully paid ordinary shares in the capital for the time
         being of the Company which satisfy paragraphs 18 to 22 of Schedule 3 to
         ITEPA;

         "SPECIFIED AGE" means 65;

         "SUBSIDIARY" means a company which is:

         (i)     a subsidiary of the Company within the meaning of Section 736
                 of the Companies Act 1985; and

         (ii)    under the Control of the Company; and

         "TAXES ACT" means the Income and Corporation Taxes Act 1988;

1.2      SHARES
         If any Shares which are subject to an Option cease to satisfy
         paragraphs 18 to 22 of Schedule 3 to ITEPA and the Directors notify the
         Inland Revenue that they wish the Plan to be disapproved, then the
         definition of "Shares" in Rule 1.1 is automatically changed to "fully
         paid ordinary shares in the capital of the Company".

                                       2

2        INVITATIONS

2.1      OPERATION
         The Directors have discretion to decide whether the Plan will be
         operated. When they operate the Plan they must invite all Eligible
         Employees to apply for an Option.

2.2      TIME WHEN INVITATIONS MAY BE MADE

         2.2.1   Subject to 2.2.2, invitations can be made at any time after the
                 Plan has been formally approved by the Inland Revenue.

         2.2.2   The Directors cannot make the invitations if restrictions
                 imposed by statute, order, regulation or Government directive,
                 or by any code adopted by the Company based on the Model Code,
                 apply.

2.3      FORM OF INVITATIONS

         The invitation will specify:

         2.3.1   the requirements a person must satisfy in order to be eligible
                 to participate;

         2.3.2   the Option Price or how it is to be calculated;

         2.3.3   the form of application and the date by which applications must
                 be received. This date must be between 14 days and 25 days
                 after the date of the invitation unless otherwise agreed in
                 advance with the Inland Revenue;

         2.3.4   the length of the Savings Contract (including whether it is
                 possible to choose to defer receiving the bonus at the end of
                 the savings period in order to receive an increased bonus) and
                 the date of start of the savings;

         2.3.5   the maximum number, if any, of Shares over which Options may be
                 granted;

         2.3.6   the maximum permitted Contribution in each month which must not
                 be more than the maximum specified by paragraph 25(3) of
                 Schedule 3 of ITEPA;

         2.3.7   the minimum permitted Contribution in each month (which must be
                 between (pound)5 and (pound)10); and

         2.3.8   whether the bonus or interest payable under the Savings
                 Contract may be used on the exercise of the Option to acquire
                 Shares.

3        APPLICATION

3.1      FORM OF APPLICATION

         An application for an Option must include an application for a Savings
         Contract with a savings carrier nominated by the Directors. The
         application will be made in writing, or electronically, in a form
         specified by the Directors and will require the Eligible Employee to
         state:

         3.1.1   the Contribution he wishes to make;

                                       3

         3.1.2   that his proposed Contribution, when added to any Contributions
                 he makes under any other Savings Contract, will not exceed the
                 maximum permitted under ITEPA; and

         3.1.3   the length of the Savings Contract if relevant, and whether he
                 wishes to defer receipt of his bonus at the end of the savings
                 period in order to receive an increased bonus.

3.2      NUMBER OF SHARES

         Each Eligible Employee's application will be for an Option over the
         largest whole number of Shares which he can acquire at the Option Price
         with the expected repayment under the related Savings Contract. The
         "expected repayment" in this Rule 3.2 does not include any bonus or
         interest excluded under Rule 2.3.8.

3.3      MODIFICATION OF APPLICATION AND PROPOSALS

         3.3.1   If there are applications for Options over more Shares than the
                 maximum specified in the invitation, each application and
                 proposal for a Savings Contract will be deemed to have been
                 modified or withdrawn as described in Rule 4.

         3.3.2   If an application for a Savings Contract specifies a
                 Contribution which, when added to any other Contributions
                 already being made by the Eligible Employee, exceeds the
                 maximum permitted (whether under ITEPA, the Savings Contract or
                 any limit specified in the invitation), the Directors are
                 authorised to modify it by reducing the Contribution to the
                 maximum possible amount. Any such modification must be made
                 before the Option is granted and before the application for the
                 Savings Contract is accepted.

4        SCALING DOWN

4.1      METHOD

         If valid applications are received for a total number of Shares in
         excess of any maximum number specified in the invitation under Rule
         2.3.5 or any limit under Rule 7, the Directors will scale down
         applications by choosing one or more of the following methods:

         4.1.1   reducing the proposed Contributions by the same proportion to
                 an amount not less than the minimum amount permitted under the
                 Savings Contract; or

         4.1.2   reducing the proposed Contributions in excess of an amount
                 chosen by the Directors, which must not be less than the
                 minimum amount permitted under the Savings Contract, by the
                 same proportion to an amount not less than the amount chosen by
                 the Directors; or

         4.1.3   treating any elections for the maximum bonus as elections for
                 the standard bonus; or

         4.1.4   treating bonuses as wholly excluded from the expected repayment
                 amount.

         The Directors may use other methods but they must agree these in
         advance with the Inland Revenue.

                                       4

4.2      INSUFFICIENT SHARES

         If, having scaled down as described in Rule 4.1 (Method), the number of
         Shares available is insufficient to enable Options to be granted to all
         Eligible Employees making valid applications, the Directors may either
         select by lot, or decide not to grant any Options.

5        OPTION PRICE

5.1      SETTING THE PRICE

         The Directors will set the Option Price which must be:

         5.1.1   not manifestly less than 85 per cent of the Market Value of a
                 Share either on the date on which invitations are sent to
                 eligible employees or on the date specified in the invitation;
                 and

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

5.2      MARKET VALUE

         "MARKET VALUE" on any particular day means:

         5.2.1   where Shares of the same class are admitted to the New York
                 Stock Exchange:

                 (i)     the closing sales price for the immediately preceding
                         Business Day; or

                 (ii)    in the absence of a reported sales price on such date,
                         the closing sales price on the immediately preceding
                         date on which sales were reported; or

                 (iii)   such other price as Shares Valuation at the Inland
                         Revenue may agree.

         5.2.2   where Rule 5.2.1 does not apply, the market value of a Share
                 calculated as described in Part VIII of the Taxation of
                 Chargeable Gains Act 1992 and agreed in advance with the Inland
                 Revenue.

6        GRANT OF OPTIONS

6.1      TIME OF GRANT

         Subject to Rule 4.2 (Insufficient Shares), the Directors must grant an
         Option to each Eligible Employee who has submitted and not withdrawn a
         valid application. The Option is to acquire, at the Option Price, the
         number of Shares for which the Eligible Employee has applied (or is
         deemed to have applied). The grant must be made within 30 days (or 42
         days if applications are scaled down) of the first day by reference to
         which the Option Price was set.

6.2      RESTRICTIONS ON GRANT

         6.2.1   An Option cannot be granted to a person who is not an Eligible
                 Employee at the Date of Grant.

         6.2.2   Options may only be granted after the date the Inland Revenue
                 approves the Plan.

                                       5

         6.2.3   A grant of an Option in excess of the Plan limits in Rule 7
                 will take effect as a grant of an Option which would not exceed
                 those limits.

6.3      OPTION CERTIFICATES

         6.3.1   The Directors will send to each Optionholder an option
                 certificate as soon as practicable after the Date of Grant. The
                 Directors will set the form of the certificate, but the
                 certificate must be consistent with these Rules.

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

6.4      NO PAYMENT

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

6.5      DISPOSAL RESTRICTIONS

         An Optionholder must not transfer, assign or otherwise dispose of an
         Option or any rights in respect of it. If, in breach of this Rule, an
         Optionholder transfers, assigns or disposes of an Option or rights,
         whether voluntarily or involuntarily, then the relevant Option will
         immediately lapse. This Rule 6.5 does not apply to the transmission of
         an Option on the death of an Optionholder to his personal
         representatives.

7        PLAN LIMITS

         Taking into account Shares issued or delivered pursuant to the Employee
         Equity Share Purchase Plan or any schedule thereto, subject to Rule
         8.1, the aggregate number of Shares that may be issued or delivered
         shall not exceed 800,000 Shares. These Shares may be authorised but
         unissued Shares, Shares held in or acquired for the Company's treasury
         or Shares purchased in the open market.

8        VARIATIONS IN SHARE CAPITAL

8.1      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:

         8.1.1   the number of Shares comprised in each Option; and

         8.1.2   the Option Price, and

         8.1.3   the limit on the number of Shares referred to in Rule 7 above

         may be adjusted in any way (including retrospective adjustments) which
         the Directors consider appropriate provided that the Option Price is
         not adjusted to less than the nominal value of a Share. However, no
         adjustment may be made in relation to Rule 8.1.1 or Rule 8.1.2 without
         the prior approval of the Inland Revenue.

         The adjusted total Option Price must be as near as possible to, and
         must not exceed, the expected proceeds of the related Savings Contract
         at the Bonus Date.

                                       6

8.2      NOTICE

         The Directors may notify Optionholders of any adjustment made under
         this Rule 8.

9        EXERCISE AND LAPSE - GENERAL RULES

9.1      EXERCISE

         Except where exercise is permitted as described in Rule 10 (Exercise
         and lapse - exceptions to the general rules), an Option can only be
         exercised:

         9.1.1   during the period of six months after the Bonus Date; and

         9.1.2   so long as the Optionholder is a director or employee of a
                 Participating Company.

9.2      MATERIAL INTEREST

         An Optionholder cannot exercise his Option if he is (or was at the date
         of his death), ineligible to participate in the Plan because of
         paragraph 11 of Schedule 3 to ITEPA (material interest provisions).

9.3      LAPSE

         An Option will lapse on the earliest of:

         9.3.1   the date the Optionholder ceases to be a director or employee
                 of a Participating Company, unless any of the provisions of
                 Rule 10 (Exercise and lapse - exceptions to the general rules)
                 apply;

         9.3.2   the date on which the Optionholder is deemed to give notice
                 under the Savings Contract that he intends to stop paying
                 contributions under his Savings Contract;

         9.3.3   the date on which the Optionholder stops paying contributions
                 under his Savings Contract unless any of the provisions of Rule
                 10 (Exercise and lapse - exceptions to the general rules)
                 apply;

         9.3.4   the expiry of any period specified in Rule 10 (Exercise and
                 lapse - exceptions to the general rules) except Rule 10.4
                 (Specified Age); or

         9.3.5   six months after the Bonus Date unless Rule 10.3 (Death)
                 applies.

10       EXERCISE AND LAPSE - EXCEPTIONS TO THE GENERAL RULES

10.1     CESSATION OF EMPLOYMENT

         10.1.1  An Optionholder may exercise his Option within 6 months after
                 he ceases to be a director or an employee of a Participating
                 Company for one of the reasons set out below. The reasons are:

                 (i)     injury, disability, redundancy within the meaning of
                         the Employment Rights Act 1996 or retirement on
                         reaching the Specified Age or any other age at which he
                         is bound to retire under the terms of his contract of
                         employment;

                                       7

                 (ii)    his office or employment being in a company of which
                         the Company ceases to have Control;

                 (iii)   the business or part of a business in which he works
                         being transferred to a company which is neither an
                         Associated Company nor a company of which the Company
                         has Control.

         10.1.2  If the Optionholder ceases to be a director or employee of a
                 Participating Company more than three years after the Date of
                 Grant for any reason other than dismissal for cause then he may
                 exercise his option within six months after leaving.

         10.1.3  For the purposes of this Rule 10.1, an Optionholder is not
                 treated as ceasing to be a director or employee of a
                 Participating Company until he has ceased to be a director or
                 employee of:

                 (i)     the Company;

                 (ii)    an Associated Company; and

                 (iii)   a company under the control of the Company.

         10.1.4  This rule applies if an Optionholder

                 (i)     ceases to be a director or employee of a Participating
                         Company but on or immediately after the date of
                         cessation is a director or employee of an Associated
                         Company, and

                 (ii)    subsequently ceases to be a director or employee of the
                         Associated Company.

                 When this rule applies, the Optionholder can exercise his
                 Option if the reason for him ceasing to be a director or
                 employee of the Participating Company (not the Associated
                 Company) was one of the reasons set out in Rule 10.1.1.

10.2     EMPLOYMENT WITH AN ASSOCIATED COMPANY

         If an Optionholder is, on the bonus date, an employee or director of an
         Associated Company or a company of which the Company has Control, he
         may exercise his Option within six months of that date.

10.3     DEATH

         If an Optionholder dies, his Option may be exercised by his personal
         representatives within one year after:

         10.3.1  the date of his death if death occurred before the relevant
                 Bonus Date; or

         10.3.2  the Bonus Date if the death occurred on or within six months
                 after the relevant Bonus Date.

10.4     SPECIFIED AGE

         If an Optionholder continues to be a director or employee of a
         Participating Company after the date on which he reaches the Specified
         Age, he may exercise his Option within 6 months after reaching the
         Specified Age.

                                       8

10.5     TAKEOVERS

         This Rule applies where a person (or a group of persons acting in
         concert) obtains Control of the Company as a result of making a general
         offer to obtain Control of the Company which is unconditional or
         becomes or is declared wholly unconditional.

         When this Rule applies Options may be exercised within the 6 month
         period after the person making the offer has obtained Control of the
         Company and any condition subject to which the offer is made has been
         satisfied.

         The Options will lapse at the end of the 6 month period unless the
         Directors give written notice to all the Optionholders before the end
         of the 6 month period that the Options will not lapse.

10.6     SECTION 429 NOTICE
         This Rule applies if a person (or a group of persons acting in concert)
         becomes bound or entitled to acquire Shares by serving a notice under
         section 429 of the Companies Act 1985 or other local legislation which
         the Inland Revenue agrees is equivalent (a "section 429 notice").
         Options may be exercised at any time when that person remains so bound
         or entitled.

10.7     COMPANY RECONSTRUCTIONS

         This Rule applies if under section 425 of the Companies Act 1985 (or
         other local legislation which the Inland Revenue agrees is equivalent):

         10.7.1  a court sanctions a compromise or arrangement, proposed for the
                 purpose of or in connection with a scheme for the
                 reconstruction of the Company or its amalgamation with any
                 other company or companies; or

         10.7.2  there is a local procedure which the Inland Revenue agrees is
                 equivalent.

         Options may, subject to Rule 10.8 (Reorganisation or merger), be
         exercised within the 6 month period after the date of the sanction.

10.8     WINDING-UP

         If the Company passes a resolution for its voluntary winding-up,
         Options may be exercised within six months after the date of the
         resolution, subject to 12.4.1 or 12.4.2. However, the issue of Shares
         after such exercise has to be authorised by the liquidator or the court
         (if appropriate), and the Optionholder must apply for this authority
         and pay his application cost. Any Options not exercised during that
         period will lapse at the end of the period.

10.9     PRIORITY

         If there is any conflict between any of the provisions in Rules 9
         (Exercise and lapse - general rules) and 10 (Exercise and lapse -
         exceptions to the general rules), the provision which results in the
         shortest exercise period will prevail.

                                       9

11       EXCHANGE OF OPTIONS

11.1     APPLICATION

         This Rule 11 applies to all Options (whether or not already
         exercisable) if a company:

         11.1.1  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 Offeror Company
                         will have Control of the Company; or

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

         11.1.2  obtains Control of the Company under a scheme of arrangement
                 sanctioned by the court under Section 425 Companies Act 1985 or
                 other local procedure which the Inland Revenue agrees is
                 equivalent; or

         11.1.3  becomes entitled or bound to acquire Shares under Sections 428
                 and 429 Companies Act 1985 or other local legislation which the
                 Inland Revenue agrees is equivalent.

11.2     AGREEMENT TO EXCHANGE

         If this Rule 11 applies, the Optionholder may, with the agreement of
         the Acquiring Company, exchange his Options under Rule 11.3 (Exchange)
         during the period set out in paragraph 38(3) of Schedule 3 to ITEPA.

11.3     EXCHANGE

         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:

         11.3.1  the new option will be in respect of shares, which satisfy the
                 conditions of paragraph 39 of Schedule 3 to ITEPA in any body
                 corporate falling within paragraph 18(b) or (c) of Schedule 3
                 to ITEPA determined by the Acquiring Company;

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

         11.3.3  the new option will be acquired at the same time as the Option
                 that was exchanged and be exercisable in the same manner and at
                 the same time;

         11.3.4  the new option will be subject to the Rules as they last had
                 effect in relation to the Option that was exchanged;

         11.3.5  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 by the Directors under Rule 11.3.1.

                                       10

11.4     GRANT

         The Acquiring Company must not grant Options under the Plan other than
         under Rule 11.3 (Exchange).

12       EXERCISE OF OPTIONS

12.1     LIMIT ON EXERCISE

         An Optionholder may exercise his Option using funds equal to or less
         than the amount repayable under his Savings Contract, including,
         subject to 2.3.8 and 3.2, any bonus or interest. An Optionholder can
         only use Contributions made before the date of exercise of the Option,
         and any bonus or interest on them.

12.2     MANNER OF EXERCISE

         Options must be exercised by notice in writing or (if the Company
         allows it) by e-mail or by other electronic means, in a form specified
         by the Company signed by the Optionholder or by his agent and delivered
         to the Company or its agent. The Optionholder must also send:

         12.2.1  if the Company so requires, the relevant option certificate;
                 and either

         12.2.2  payment in full and evidence of the termination of the Savings
                 Contract; or

         12.2.3  authority to terminate the Savings Contract and use the amount
                 needed to acquire the number of Shares over which the Option is
                 being exercised.

         The exercise of the Option is effective on the date of receipt by the
         Company or its agent of the notice, the option certificate (if
         required) and the relevant payment or authority.

12.3     PART EXERCISE

         When an Option is exercised in part, it lapses to the extent of the
         unexercised balance.

12.4     ISSUE OR TRANSFER

         Subject to Rule 12.6 (Consents):

         12.4.1  Shares to be issued following the exercise of an Option must be
                 issued within 30 days of the date of exercise; and

         12.4.2  if Shares are to be transferred following the exercise of an
                 Option, the Directors must procure this transfer within 30 days
                 of the date of exercise.

12.5     RIGHTS

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

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

                                       11

12.6     CONSENTS

         All allotments, issues and transfers of Shares are 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 is responsible for complying with any requirements to
         obtain or avoid the need for any such consent.

12.7     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.

12.8     LISTING

         If and so long as the Shares are listed on any stock exchange where
         Shares are traded, the Company must apply for listing of any Shares
         issued pursuant to the Plan as soon as practicable after their
         allotment.

13       GENERAL

13.1     NOTICES

         13.1.1  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:

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

                 (ii)    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.

         13.1.2  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 the duly appointed agent may from time to time
                 decide and notify to Optionholders) or sent by e-mail or fax to
                 any e-mail address or fax number notified to the sender.

         13.1.3  Notices sent by post will be deemed to have been given on the
                 earlier of the date of actual receipt and 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 earlier of the date of actual receipt and the
                 seventh day after the date of posting.

         13.1.4  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.

13.2     DOCUMENTS SENT TO SHAREHOLDERS

         The Company may send to Optionholders copies of any documents or
         notices normally sent to the holders of its Shares.

                                       12

13.3     DIRECTORS' DECISIONS FINAL AND BINDING

         The decision of the Directors on the interpretation of the Rules or in
         any dispute relating to an Option or matter relating to the Plan is
         conclusive.

13.4     COSTS

         The Company will pay the costs of introducing and administering the
         Plan. The Company may require each Participating Company to 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.

13.5     ADMINISTRATION

         The Directors have the power from time to time to make or vary
         regulations for the administration and operation of the Plan.

13.6     TERMS OF EMPLOYMENT

         13.6.1  For the purposes of this Rule, "Employee" means any
                 Optionholder, any Eligible Employee or any other person.

         13.6.2  This Rule 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.

         13.6.3  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 arising from the
                 employment relationship between the Employee and the Company
                 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.

         13.6.4  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.

         13.6.5  Without prejudice to Rule 2.1, 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.

         13.6.6  Without prejudice to an Employee's right to exercise an Option
                 subject to and in accordance with the express terms of the
                 Rules, no Employee has any rights in respect of the making or
                 omission to make any decision, relating to the Option. Any
                 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

                                       13

                 employer, including any implied duty of trust and confidence.
                 Any such implied term is excluded and overridden by this Rule.

         13.6.7  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 decision taken in relation to an Option or to the
                         Plan, or any failure to take a decision;

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

         13.6.8  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. 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, in consideration for, and
                 as a condition of, the grant of an Option under the Plan.

         13.6.9  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.

         13.6.10 Each of the provisions of this Rule 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.

13.7     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 the trust or him to
         acquire Shares 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 1985.

13.8     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:

         13.8.1  administering and maintaining Optionholder records;

         13.8.2  providing information to trustees of any employee benefit
                 trust, registrars, brokers savings carrier or other third party
                 administrators of the Plan;

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

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

                                       14

14       CHANGING THE PLAN AND TERMINATION

14.1     DIRECTORS' POWERS

         Except as described in the rest of this Rule 14, the Directors may at
         any time change the Plan in any way.

14.2     SHAREHOLDERS' APPROVAL

         14.2.1  Except as described in Rule 14.2.2, 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 whom 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 maximum Contribution which may be made under the
                         Plan;

                 (iv)    the determination of the Option Price;

                 (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 14.2.1.

         14.2.2  The Directors need not obtain the approval of the Company in
                 general meeting for any minor changes:

                 (i)     to benefit the administration of the Plan;

                 (ii)    which are necessary or desirable in order to maintain
                         Inland Revenue approval of the Plan under Schedule 3 to
                         ITEPA or any other enactment;

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

                 (iv)    to take account of any changes to the legislation; or

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

14.3     INLAND REVENUE APPROVAL

         If the approved status of the Plan is to be maintained, any change to a
         key feature of the Rules after it has been approved under ITEPA will
         take effect from the later of:

         14.3.1  the date that the change is approved by the Inland Revenue; and

         14.3.2  the date the Directors resolve to approve the amendment.

         If the approved status of the Plan is not to be maintained, the
         Directors must inform the Inland Revenue as soon as practicable.

                                       15

         A "key feature" is any provision necessary to meet the requirements of
         ITEPA.

14.4     NOTICE

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

14.5     TERMINATION OF THE PLAN

         The Plan will terminate when the Employee Equity Purchase Plan
         terminates or such earlier date as the Directors may determine.

15       GOVERNING LAW

         English law governs the Plan and all Options and their construction.
         The English Courts have non-exclusive jurisdiction in respect of
         disputes arising under or in connection with the Plan or any Option.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]