Document:

The Cookson Group Long-Term Incentive Plan 2004 - Scheme Rules

 Exhibit 4.6 - The Cookson Group Long-Term Incentive Plan 2004— 
 Scheme Rules 
  
  

 THE COOKSON GROUP LONG-TERM

 INCENTIVE PLAN 
 2004

  
  

 CONTENTS 
  

							
	Clause	 	 	 	 	  	Page
	 1.
	 	 Definitions And Interpretation
	  	1
	 2.
	 	 Performance Share Awards
	  	2
	 3.
	 	 Bonus Investment Shares
	  	2
	 4.
	 	 Matching Share Awards
	  	3
	 5.
	 	 Grant Of Awards
	  	3
	 6.
	 	 Issue Of Shares To Trustees And Plan Limits
	  	4
	 7.
	 	 Vesting Of Awards, Exercise Of Options And Transfer Of Allocated Shares
	  	5
	 8.
	 	 Takeover, Reconstruction And Winding-Up
	  	8
	 9.
	 	 Variation Of Capital
	  	9
	 10.
	 	 Alterations
	  	10
	 11.
	 	 Miscellaneous
	  	11
	 SCHEDULE 1 PERFORMANCE CONDITIONS
	  	13
	 SCHEDULE 2 RESTRICTED SHARES
	  	17

  
  

 RULES OF THE COOKSON GROUP LONG-TERM INCENTIVE PLAN 2004 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	In these Rules, unless the context otherwise requires:- 

  
 “Allocated Shares” means the number of shares in the Company subject to an Allocation; 
  
 “Allocation” means a conditional promise to provide shares
in the Company for no payment pursuant to the Plan; 
  
 “Award” means a Performance Share Award or a Matching Share Award, in each case structured as an Allocation or an Option (or, if the Remuneration Committee so decides, structured as an Award of Forfeitable Shares pursuant
to Schedule 2); 
  
 “Award Date” in
relation to an Award means the date on which the Award was made; 
  
 “Bonus” means a cash bonus or other cash incentive for which an Eligible Employee may be eligible in respect of a Financial Year; 
  
 “the Company” means Cookson Group plc (registered in England No. 251977); 
  
 “EBT” means the Cookson Group plc Employee Share Ownership
Trust or any other employees’ benefit trust established by the Company; 
  
 “Eligible Employee” means any employee or director of a Participating Company save those employees or directors who are within 6 months of their anticipated retirement date; 
  
 “Financial Year” means a financial year of the
Company within the meaning of section 742 of the Companies Act 1985; 
  
 “Option” means a right to acquire shares in the Company pursuant to the Plan; 
  
 “Participant” means a person who holds an Award granted under the Plan; 
  
 “ParticipatingCompany” means the Company or any Subsidiary; 
  
 “Performance Period” in relation to an Award means the
three consecutive Financial Years of which the first is the Financial Year in which the Award Date falls; 
  
 “the Plan” means The Cookson Group Long-Term Incentive Plan 2004 as herein set out but subject to any alterations or additions
made under Rule 10 below; 
  
 “Remuneration
Committee” means the remuneration committee of the board of directors of the Company or any committee appointed by the remuneration committee; 
  
 “Subsidiary” means a body corporate which is a subsidiary of the Company within the meaning of section 736 of the Companies Act l985;

  
 “the Trustees” means the trustee or
trustees for the time being of the EBT; 
  

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 “UK Listing Authority” means the Financial Services Authority acting in
its capacity as the competent authority for the purposes of Part VI of the Financial Services and Markets Act 2000. 
  

	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.	PERFORMANCE SHARE AWARDS 

  

	2.1	Grant of Awards 

  
 The Remuneration Committee may, in its absolute discretion, select an Eligible Employee to receive an Award (a “Performance Share Award”) upon
the terms set out in the Plan and upon such other terms as the Remuneration Committee may specify. 
  

	2.2	Number of shares subject to Awards 

  
 The number of shares subject to a Performance Share Award granted to an Eligible Employee in any Financial Year shall not exceed such number of shares as
has a market value equal to 100 per cent of his salary. 
  
 For
the purposes of this Rule 2.2: 
  

	 	2.2.1	 	the market value of the shares in respect of which a Performance Share Award is granted shall, at a time when shares in the Company are listed in the London Stock Exchange
Daily Official List, be taken to be the middle-market quotation of such shares (as derived from that List) on the dealing day last preceding the Award Date or the average middle-market quotation of such shares on the five dealing days preceding the
Award Date as the Remuneration Committee shall decide; 

  

	 	2.2.2	 	an Eligible Employee’s salary shall be taken to be his basic salary (excluding benefits in kind), expressed as an annual rate, payable by the relevant Participating
Company to him as at the Award Date. Where a payment of salary is made in a currency other than sterling, the payment shall be treated as equal to the equivalent amount of sterling ascertained by using such rate of exchange as the Remuneration
Committee may reasonably select (including an average rate of exchange for such period as the Remuneration Committee may reasonably select). 

  

	3.	BONUS INVESTMENT SHARES 

  

	3.1	The Remuneration Committee may, in its absolute discretion, invite an Eligible Employee who receives a Bonus to acquire shares (“Bonus Investment Shares”) in the Company
with all or part of his Bonus (after tax and other required withholdings have been deducted) subject to such maximum amount as the Remuneration Committee may determine. 

  

	3.2	A Participant who acquires Bonus Investment Shares in accordance with Rule 3.1 will be the beneficial owner of those shares and will not be required to forfeit them in any
circumstances under the Plan. 

  

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	4.	MATCHING SHARE AWARDS 

  

	4.1	Grant of Awards 

  
 The Remuneration Committee shall grant an Award (a “Matching Share Award”) to each Participant in respect of the Bonus Investment Shares
acquired under Rule 3.1, on the terms set out in the Plan and upon such other terms as the Remuneration Committee may specify. 
  

	4.2	Number of shares subject to Awards 

  
 Subject to Rule 4.3 below, the maximum number of shares subject to a Matching Share Award shall be equal to 225 per cent of the number of Bonus Investment
Shares that the Participant could have acquired if he had invested all or that part of his Bonus on a pre-tax basis based on the price at which the Participant acquired his Bonus Investment Shares. 
  

	4.3	Forfeiture of shares 

  
 If the Participant sells or otherwise disposes of any of the Bonus Investment Shares to which the Matching Share Award relates, the number of shares
subject to the Matching Share Award shall be decreased in proportion to the number of Bonus Investment Shares sold or otherwise disposed of. 
  

	5.	GRANT OF AWARDS 

  

	5.1	Procedure 

  
 Awards will be granted: 
  

	 	5.1.1	 	upon the terms set out in the Plan and upon such other terms as the Company may specify; 

  

	 	5.1.2	 	in the form of either an Allocation or an Option as determined by the Remuneration Committee on the Award Date (or, if the Remuneration Committee so decides on the Award Date,
structured as an Award of Forfeitable Shares pursuant to Schedule 2); and 

  

	 	5.1.3	 	on such date as may be selected by the Remuneration Committee which shall be: 

  

	 	(a)	 	within the period of 6 weeks following the adoption of the Plan; 

  

	 	(b)	 	within the period of 6 weeks beginning with the dealing day next following the date on which the Company announces its annual results; 

  

	 	(c)	 	at any other time when the circumstances are considered by the Remuneration Committee to be sufficiently exceptional to justify the grant thereof including, but not limited to,
circumstances where the grant of Awards was restricted under the Model Code provisions of the Listing Rules during any of the periods mentioned in Rules 5.1.3 and 5.1.4 above; and 

  

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	 	(d)	 	within the period of 10 years beginning with the date on which the Plan is established. 

  

	5.2	Shares used to satisfy Awards 

  
 At the time the Remuneration Committee grants an Award, it will decide whether the Award is: 
  

	 	5.2.1	 	an Award which may be satisfied only by the issue of new shares; or 

  

	 	5.2.2	 	an Award which may be satisfied only by the transfer of shares (including the transfer of treasury shares as permitted by the Companies Act 1985). 

  
 The Remuneration Committee may decide to change the way in which an Award is
satisfied after it has been granted, having regard to the provisions of Rules 6.3 to 6.5 inclusive. 
  

	5.3	Consideration for grant 

  
 There shall be no monetary consideration for the grant of any Award, and accordingly it shall be granted by deed. 
  

	5.4	No payment under Awards 

  
 The price payable by the Participant on the acquisition of shares pursuant to the exercise of an Option or on the issue or transfer of Allocated Shares
shall be nil. 
  

	5.5	Approvals and consents 

  
 The grant of any Award under the Plan shall be subject to obtaining any approval or consent required under the provisions of the document “The
Listing Rules” published by The UK Listing Authority, or The City Code on Take-overs and Mergers, or of any regulation or enactment. 
  

	5.6	Non-transferability and bankruptcy 

  
 An Award shall not be capable of being transferred by any Participant except to his personal representatives. An Award shall lapse if the Participant
purports to transfer his interest in an Award or if he is adjudged bankrupt. 
  

	6.	ISSUE OF SHARES TO TRUSTEES AND PLAN LIMITS 

  

	6.1	Acquisition of shares by Trustees 

  
 Subject to Rules 6.3 to 6.6 below, the Company may: 
  

	 	6.1.1	 	grant to the Trustees an option to subscribe for shares in the Company or to acquire treasury shares; or 

  

	 	6.1.2	 	issue shares in the Company to the Trustees. 

  

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	6.2	Price payable by trustees for shares 

  
 The price at which shares may be acquired by the Trustees under Rule 6.1 shall be determined by the Remuneration Committee before the grant of the
relevant option or, in the case of shares issued otherwise than in pursuance of an option, before the issue thereof. 
  

	6.3	5 per cent in 10 year limit 

  
 No Awards shall be granted, or shares issued otherwise than pursuant to an Award, under the Plan in any year which would, at the time of the grant or
issue, cause the number of shares in the Company which shall have been or may be issued in pursuance of awards or options granted in the period of 10 calendar years ending with that year, or shall have been issued in that period otherwise than in
pursuance of awards or options, under the Plan or under any executive share scheme adopted by the Company to exceed such number as represents 5 per cent of the ordinary share capital of the Company in issue at that time. 
  

	6.4	10 per cent in 10 year limit 

  
 No Awards shall be granted, or shares issued otherwise than pursuant to an Award, under the Plan in any year which would, at the time of the grant or
issue, cause the number of shares in the Company which shall have been or may be issued in pursuance of awards or options granted in the period of 10 calendar years ending with that year, or shall have been issued in that period otherwise than in
pursuance of awards or options, under the Plan or under any other employees’ share scheme adopted by the Company to exceed such number as represents 10 per cent of the ordinary share capital of the Company in issue at that time. 
  

	6.5	Limits: Treasury Shares 

  
 Any treasury shares held by the Company which are transferred to Participants in satisfaction of Awards shall be treated as issued for the purposes of
Rules 6.3 and 6.4 above. 
  

	6.6	Limits: release or lapse of Awards 

  
 Where any Award relating to unissued shares or treasury shares is released or lapses (or the Remuneration Committee makes arrangements for it to be
satisfied by the transfer of existing shares other than shares transferred out of treasury), the shares concerned will be ignored when calculating the limits in Rules 6.3 and 6.4. 
  

	7.	VESTING OF AWARDS, EXERCISE OF OPTIONS AND TRANSFER OF ALLOCATED SHARES 

  

	7.1	Manner of exercise 

  
 The exercise of any Option and the issue or transfer of any Allocated Shares shall be effected in such form and manner as the Remuneration Committee may
from time to time prescribe. 
  

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	7.2	Exercise conditions 

  
 Subject to Rules 7.3, 7.4 and 8 below: 
  

	 	7.2.1	 	an Option may not be exercised before the third anniversary of the Award Date; 

  

	 	7.2.2	 	in the case of an Allocation, Allocated Shares shall be issued or transferred as soon as reasonably practicable after the third anniversary of the Award Date;

  

	 	7.2.3	 	the number of shares subject to an Option or an Allocation that may be issued or transferred to a Participant following the third anniversary of the Award Date shall be determined
by the extent to which the conditions in Schedule 1 are satisfied; 

  

	 	7.2.4	 	where an Option becomes exercisable to any extent under Rule 7.4 below, it may (and must, if at all) be exercised during the period of six months following the date on which it
becomes so exercisable and shall then automatically lapse to the extent unexercised during that period. 

  

	7.3	Cessation of employment: Resignation and dismissal 

  
 If a Participant ceases to be a director or employee of a Participating Company by reason of his voluntary resignation (as determined by the Remuneration
Committee) or summary dismissal, then Allocated Shares cannot be issued or transferred, an Option cannot thereafter be exercised and (for the avoidance of doubt) all Awards shall lapse immediately on the date that the Participant voluntarily resigns
or is summarily dismissed. 
  

	7.4	Cessation of employment: Remuneration Committee discretion 

  
 If the Participant ceases to be a director or employee of a Participating Company for any reason other than those mentioned in Rule 7.3 above, then
Allocated Shares cannot thereafter be issued or transferred, an Option cannot thereafter be exercised and (for the avoidance of doubt) all Awards shall lapse immediately on the Participant’s ceasing employment, unless the Remuneration Committee
decides otherwise. If the Remuneration Committee permits the issue or transfer of Allocated Shares or the exercise of an Option, it shall determine whether Allocated Shares shall be issued or transferred or an Option exercised: 
  

	 	7.4.1	 	in accordance with Rule 7.2 to the extent that the conditions set out in Schedule 1 are either already satisfied or are subsequently satisfied (in each case at the end of the
Performance Period) provided that the Remuneration Committee may decide that the number of shares which may be issued or transferred to a Participant shall be reduced pro rata to reflect any unexpired part of the Performance Period as at the time of
the Participant’s so ceasing; or 

  

	 	7.4.2	 	 before the third anniversary of the Award Date, to the extent that the conditions set out in Schedule 1 have been met (where applicable, on the basis of a reduced
Performance Period) as at the time of the Participant’s so ceasing provided that the number of shares which may be issued or transferred to a Participant shall 

  

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be reduced pro rata to reflect any unexpired part of the Performance Period as at the time of the Participant’s so ceasing unless the Remuneration
Committee decides otherwise. 

  

	7.5	Effect of dealing rules 

  
 If the Company’s staff dealing rules (or any other regulation or enactment) prohibit dealing in shares in the Company at any particular time,
transfer or exercise cannot take place during such prohibited time. 
  

	7.6	Meaning of ceasing employment 

  
 A Participant shall not be treated for the purposes of Rules 7.3 and 7.4 above as ceasing to be a director or employee of a Participating Company until
such time as he is no longer a director or employee of any of the Participating Companies, 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 any applicable legislation shall be treated for those purposes as not having ceased to be such a director or employee. 
  

	7.7	Allotment and transfer timetable 

  
 Subject to Rules 7.9 and 7.10 below, within 30 days after an Option under the Plan has been exercised by any person or Allocated Shares have vested, the
Company shall allot to him or procure the transfer to him (or his nominee) of the number of shares in respect of which the Option has been exercised or have vested under the Allocation. 
  

	7.8	Long stop date for exercise and vesting 

  
 Notwithstanding any provision of this Plan, an Option may not be exercised or Allocated Shares vest after the expiration of the period of 10 years (or
such shorter period as the Remuneration Committee may have determined before the grant of an Award) beginning with the Award Date. 
  

	7.9	Approvals and consents 

  
 The transfer or issue of any shares under the Plan or the issue of any shares to the Trustees shall be subject to obtaining any such approval or consent
as is mentioned in Rule 5.5. 
  

	7.10	Restrictions on exercise or vesting: regulatory issues and tax liabilities 

  
 An Option may not be exercised or Allocated Shares issued or transferred unless: 
  

	 	7.10.1	 	the Remuneration Committee considers that the issue or transfer of shares pursuant to an Award would be lawful in all relevant jurisdictions; and 

  

	 	7.10.2	 	 in a case where, if the Option were exercised or Allocated Shares were issued or transferred, a Participating Company would be obliged to (or would suffer a
disadvantage if it were not to) account for any tax or social security contributions (in any jurisdiction) for which the person in question would be 

  

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liable by virtue of the exercise of the Option or the issue or transfer of Allocated Shares or that would be recoverable from that person (together, the
“Tax Liability”), that person has either: 

  

	 	(a)	 	made a payment to the Participating Company of an amount at least equal to the Company’s estimate of the Tax Liability; or 

  

	 	(b)	 	entered into arrangements acceptable to that or another Participating Company to secure that such a payment is made (whether by authorising the sale of some or all of the shares on
his behalf and the payment to the Participating Company of the relevant amount out of the proceeds of sale or otherwise). 

  

	8.	TAKEOVER, RECONSTRUCTION AND WINDING-UP 

  

	8.1	General offers 

  
 Subject to the earlier lapse of Awards under Rules 7.3, 7.4 and 7.8, if any person obtains control of the Company (within the meaning of section 719 of
the Income Tax (Earnings and Pensions) Act 2003) as a result of making a general offer to acquire shares in the Company, or having obtained such control makes such an offer, then, subject to Rule 8.4, Allocated Shares may be issued or transferred to
Participants and Options may be exercised within such period as the Remuneration Committee may permit (following which the Awards shall lapse) to the extent that the conditions set out in Schedule 1 have been met as at that time (where applicable,
on the basis of a reduced Performance Period), provided that the number of shares which may be issued or transferred to a Participant shall be reduced pro rata to reflect any unexpired part of the Performance Period unless the Remuneration Committee
decides otherwise. 
  

	8.2	General offers: concert parties 

  
 For the purposes of Rule 8.1, 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. 
  

	8.3	Compulsory acquisition, schemes of arrangement and winding-up 

  
 Subject to the earlier lapse of Awards under Rules 7.3, 7.4 and 7.8, 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 Plan 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, then, subject to Rule 8.4, Allocated Shares may be issued or transferred to
Participants and Options may be exercised within such period as the Remuneration Committee may permit (following which Awards shall lapse) to the extent that the conditions set out in Schedule 1 have been met as at that time (where applicable, on
the basis of a reduced Performance Period), provided that the number of shares which may be issued or transferred to a Participant may be reduced pro rata to reflect any unexpired part of the Performance Period unless the Remuneration Committee
decides otherwise. 
  

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	8.4	Internal reorganisations 

  
 If: 
  

	 	8.4.1	 	an offer (as referred to in Rule 8.1) is made or a compromise or arrangement (as referred to in Rule 8.3) is proposed which, if accepted or approved by the Court (as the case may
be), will result in the Company being controlled by a new company; 

  

	 	8.4.2	 	at least 75% of the shares in the new company will be held by persons who immediately before the offer or proposal was made were shareholders in the Company; and

  

	 	8.4.3	 	before Awards vest under Rule 8.1 or 8.3, an offer is made to Participants to release their Awards in consideration of the grant of equivalent new Awards 

 
 the old Awards shall not vest under Rule 8.1 or 8.3 and, if the offer to
release the old Awards in consideration for the grant of new Awards is not accepted by the Participant in respect of any old Award, that old Award shall lapse on the expiry of that period. 
  

	8.5	Meaning of Remuneration Committee 

  
 For the purposes of Rule 8, Remuneration Committee means the Remuneration Committee as constituted immediately prior to a change of control. 

 

	9.	VARIATION OF CAPITAL 

  

	9.1	General rule on adjustment of Awards 

  
 Subject to Rule 9.3 below, in the event of any increase or variation of the share capital of the Company or a demerger, special dividend or other similar
event (whenever effected), the Remuneration Committee may make such adjustments as it considers appropriate under Rule 9.2 below. 
  

	9.2	Method of adjustment 

  
 An adjustment made under this rule shall be to one or more of the following:- 
  

	 	9.2.1	 	the number of shares in respect of which any Option may be exercised; 

  

	 	9.2.2	 	where any such Option has been exercised but no shares have been transferred pursuant to such exercise, the number of shares which may be so transferred; and

  

	 	9.2.3	 	the number of Allocated Shares. 

  

	9.3	Notification of adjustment 

  
 As soon as reasonably practicable after making any adjustment under Rule 9.2 above, the Remuneration Committee shall give notice in writing thereof to any
Participant affected thereby. 
  

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	10.	ALTERATIONS 

  

	10.1	General rule on alterations 

  
 Subject to Rules 10.2 and 10.3 below, the Remuneration Committee may at any time alter or add to all or any of the provisions of the Plan or alter or add
to the terms of any Award granted under it, in any respect. 
  

	10.2	Alterations to disadvantage of Participants 

  
 No alteration or addition to the disadvantage of any Participant shall be made under Rule 10.1 above unless: 
  

	 	10.2.1	 	the Company shall have invited every such Participant to give an indication as to whether or not he approves the alteration or addition, and 

  

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

  

	10.3	Shareholder approval 

  
 Subject to Rule 10.4 below, no alteration to the advantage of Participants shall be made under Rule 10.1 to Rules 2, 3.1, 4, 5.1.3 to 5.1.6 inclusive, 6.3
to 6.5 inclusive, 7.2 to 7.4 inclusive, 7.8, 8.1 to 8.4 inclusive, 9.1 and 9.2 above without the prior approval by ordinary resolution of the members of the Company in general meeting. 
  

	10.4	Exceptions to shareholder approval 

  
 Rule 10.3 above shall not apply:- 
  

	 	10.4.1	 	to any minor alteration 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 Participants or any Participating Company; or 

  

	 	10.4.2	 	to any alteration solely relating to a performance condition. 

  

	10.5	Alterations to the performance condition 

  
 No alteration which solely relates to the performance condition shall be made under Rule 10.1 unless: 
  

	 	10.5.1	 	an event of a technical nature has occurred which causes the Remuneration Committee reasonably to consider that the performance condition would not, without the alteration, in the
opinion of the Remuneration Committee, achieve its original purpose; 

  

	 	10.5.2	 	the altered performance condition is at least as difficult to satisfy; and 

  

	 	10.5.3	 	the Remuneration Committee shall act fairly and reasonably in making the alteration. 

  

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	10.6	Notification of alterations 

  
 As soon as reasonably practicable after making any alteration or addition under Rule 10.1 above, the Company shall give notice in writing thereof to any
Participant affected thereby. 
  

	11.	MISCELLANEOUS 

  

	11.1	Employment 

  
 The rights and obligations of any individual under the terms of his office or employment with any Participating Company 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 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 any Award or ceasing to be entitled to exercise any Option or to be transferred Allocated Shares under the Plan as a result of such termination.

  

	11.2	Disputes 

  
 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 Remuneration Committee shall be final and binding upon all persons. 
  

	11.3	Financial Assistance 

  
 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, or enter into any guarantee or indemnity for those purposes, to the extent permitted by section 153(4) of the Companies Act 1985 and, where applicable, section 154 of that Act. 
  

	11.4	Overseas Participants 

  
 Where an Award is granted under the Plan to a person who is not chargeable to tax under section 15 or 21 of the Income Tax (Earnings and Pensions) Act
2003 in respect of the office or employment by virtue of which it is granted to him, the provisions of the Plan shall apply thereto subject to such alterations or additions as the Company shall before the grant thereof have determined having regard
to any securities, exchange control or taxation laws or regulations or similar factors which may have application to him or to any Participating Company in relation to the Award. 
  

	11.5	Notices 

  
 Any notice or other communication under or in connection with the Plan may be given either: 
  

	 	11.5.1	 	 by personal delivery or by sending the same by post, in the case of a company to its registered office, and in the case of an individual to his last known address,
or, where he is a director or employee of a Participating Company, 

  

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either to his last known address or to the address of the place of business at which he performs the whole or substantially the whole of the duties of his
office or employment; or 

  

	 	11.5.2	 	in an electronic communication to an address for the time being notified for that purpose to the person giving the notice. 

  

	11.6	Payment of employer’s social security 

  
 The Remuneration Committee may make such arrangements prior to the grant of an Award as it sees fit to fund the payment of any social security
contributions that may arise for any Participating Company in connection with the Award. The arrangements may include (without limitation) a Participating Company providing money to the Trustees to enable them to purchase existing shares in the
Company to hedge the social security cost or the Participant being required, as a condition of the grant of the Award, to agree to reimburse the Participating Company for such social security contributions. 
  

	11.7	Governing law 

  
 The Rules of the Plan shall be governed by and construed in accordance with the law of England and any dispute relating to the Plan shall be adjudicated
by the English courts. 
  

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 SCHEDULE 1 
  
 PERFORMANCE CONDITIONS 
  

	1.	Introduction and underlying performance test 

  
 The shares subject to an Award may only be issued or transferred to the extent that the conditions specified in paragraph 3 below are satisfied.

  
 When the Remuneration Committee has determined the extent to
which the conditions specified in paragraph 3 below are satisfied in accordance with this Schedule, the shares calculated under paragraph 3 below will vest immediately provided that the Remuneration Committee is satisfied that the Company’s
underlying financial performance over the Performance Period justifies the vesting of those shares. 
  

	2.	Definitions 

  
 All the words and expressions defined in the rules of the Plan shall bear the same meaning when used in this Performance Condition. In this Performance
Condition, the following words and expressions shall have the following meanings: 
  

					
	 	 	“Comparator Group”	  	subject to paragraph 4.3 below, the companies listed in the FTSE Mid 250 Index excluding investment trusts (or such other group of companies as the Remuneration Committee may
determine)1 as at the beginning of the Performance Period and “member of the Comparator Group” shall be
construed accordingly;
			
	 	 	“Net Return Index”	  	the index that reflects movements in share price over a period and dividends reinvested on a net basis (without any associated tax credit) in shares on the ex-dividend date;
			
	 	 	“Total Shareholder Return”	  	the increase in the Net Return Index for a company as calculated by Datastream over the Performance Period calculated as follows:
			
	 	 	 	  	TSR2 minus TSR1
	 	 	 	  	TSR1
	 	 	 	  	where:
			
	 	 	 	  	TSR1 is its average Net Return Index over each weekday (excluding Saturdays and Sundays) during the three month period ending on the weekday immediately before the beginning of the Financial
Year in which the Award Date falls;

  

	1	If the Remuneration Committee wishes to change materially the group of companies constituting the Comparator Group, it shall consider consulting with investors about this amendment.

	 	

  

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	 	 	 	  	TSR2 is its average Net Return Index over each weekday (excluding Saturdays and Sundays) during the three month period ending on the final weekday of the Performance Period.

  

	3.	Limitations on Exercise or Vesting of an Award 

  
 The performance condition (the “Performance Condition”) referred to in this Schedule is that the Award shall only be capable of being exercised
or vesting if the Company’s Total Shareholder Return shall have been such as would place it on the last day of the Performance Period at least at the median of the constituents of the Comparator Group ranked in descending order by Total
Shareholder Return for the Performance Period as determined by the Remuneration Committee in accordance with paragraph 4 below, in which case the Award shall become exercisable or vest as follows: 
  
 Matching Share Awards 
  

							
	Position at which the Company is ranked	  	 (1)
 Matching ratio compared to pre-tax
invested Bonus
	  	 	  	 (2)
 % of Matching Share Award
exercisable or vesting

	 Upper quintile and above
	  	2.25:1	  	 	  	100%
	 Between median and upper quintile
	  	Pro rata between 0.5:1 and 2.25:1	  	 	  	Pro rata between 22.2% and 100%
	 Median
	  	0.5:1	  	 	  	22.2%
	 Below median
	  	0	  	 	  	0%

  
 Note: In a case where
the maximum matching ratio is less than 2.25:1, the extent to which a Matching Share Award shall become exercisable or vest is determined using only column (2) above. 
  
 Performance Share Awards 
  

			
	Position at which the Company is ranked	  	% of Performance Share Award exercisable or
vesting
	 Upper quintile and above
	  	100%
	 Between median and upper quintile
	  	Pro rata between 25% and 100%
	 Median
	  	25%
	 Below median
	  	0%

  

 - 14 - 

	3.1	If the Performance Condition is not satisfied in full at the end of the Performance Period, any portion of the Award that has not become exercisable as a consequence of the
Performance Condition not being met in full shall forthwith lapse. 

  

	3.2	For these purposes a smaller negative figure for Total Shareholder Return shall rank higher than a larger negative figure for Total Shareholder Return. 

  

	3.3	Any fraction of a Share arrived at by applying the Performance Condition shall be ignored. 

  

	3.4	If an Award is exchanged for a new Award pursuant to Rule 8.4 of the Plan, the new Award shall be granted with a comparable performance condition to the Performance Condition but
with the Award Date (for the purposes of that condition) being regarded as the Award Date of the original Award. 

  

	4.	Calculation of Total Shareholder Return 

  

	4.1	As soon as practicable following the end of the Performance Period, the Remuneration Committee shall calculate the Company’s Total Shareholder Return for the Performance Period
for each member of the Comparator Group, rank the members of the Comparator Group by Total Shareholder Return, identify the company ranked median and upper quintile and compare the Company’s Total Shareholder Return to the Total Shareholder
Returns of the companies with these rankings. The Remuneration Committee shall, having completed such calculation, inform the Participant of the extent to which (if at all) the Performance Condition has been satisfied. Such determination shall be
final and binding. 

  

	4.2	In accordance with Rule 10 of the Plan, the Remuneration Committee reserves the power to amend the Performance Condition as it considers appropriate. 

  

	4.3	If any member of the Comparator Group ceases to exist, its shares cease to be listed in the Official List of the London Stock Exchange (or overseas equivalent), or otherwise is so
changed as to make it, in the opinion of the Remuneration Committee, unsuitable as a member of the Comparator Group, the Remuneration Committee may in its absolute discretion: (a) retain such company in the Comparator Group; (b) exclude that
company; (c) in the event of a takeover, replace that company with the acquiring company; (d) include a substitute for that company when calculating the Total Shareholder Return for any member of the Comparator Group for the Performance Period; or
(e) track the future performance of that company by reference to an index. The Remuneration Committee shall notify the Participant as soon as reasonably practicable of any change in the Comparator Group. 

  

	4.4	The calculations of the Remuneration Committee shall not be open to question and in the absence of fraud the Remuneration Committee shall be under no liability to any person by
reason thereof or of anything done or omitted by them for the purposes thereof or in connection therewith. 

  

	5.	Curtailment of Performance Period 

  

 - 15 - 

	5.1	If an event as described in Rule 8 of the Plan occurs, the Performance Period shall end on the date of that event, and the Remuneration Committee, as constituted immediately before
that event, shall determine the extent to which the Performance Condition has been met. 

  

	5.2	If the Participant ceases to be a director or employee of all Participating Companies, then to the extent that an Option is capable of exercise or Allocated Shares are to be issued
or transferred pursuant to Rule 7.4 prior to the end of the original Performance Period, the Performance Period shall end on the 31 March, 30 June, 30 September or 31 December immediately preceding the date of cessation of office or employment,
unless determined otherwise by the Remuneration Committee, and TSR2 in the formula stated in paragraph 2 above shall be the average Net Return Index over the three months ending on the expiry of the Performance Period. 

  

 - 16 - 

 SCHEDULE 2 
  
 RESTRICTED SHARES 
  
 All the words and expressions defined in the rules of the Plan shall bear the same meaning when used in this Schedule. 
  

	1.	Awards granted to Participants may, if the Remuneration Committee so decides, take the form of an immediate award of shares in the Company subject to forfeiture where the conditions
specified in the rules of the Plan are not met (“Forfeitable Shares”). 

  

	2.	Any reference in this Schedule 2 to the “Vesting” (or related expressions) of any Forfeitable Shares shall mean the date on which such shares cease to be forfeitable.

  

	3.	It is a condition of any award of Forfeitable Shares that the Participant shall agree to waive all dividends on such Forfeitable Shares until the Award vests and may not transfer
the Forfeitable Shares during this period. The Participant shall further agree not to exercise any voting rights, nor to exercise any shareholder rights in relation to an event falling within Rule 8, in relation to the Forfeitable Shares until the
Award Vests. 

  

	4.	An Award of Forfeitable Shares shall Vest at the same time and to the same extent as shares subject to an Allocation would be issuable or transferable to a Participant. Similarly,
an Award of Forfeitable Shares shall lapse at the same time and to the same extent as an Allocation. 

  

	5.	The Participant agrees that, unless the Remuneration Committee determines otherwise, the legal title to any Forfeitable Shares shall be held by a person nominated by the
Remuneration Committee (the “Nominee”) until the Vesting of such Forfeitable Shares. The Participant further agrees that any restrictions attaching to the Forfeitable Shares as set out in this Schedule 2 shall similarly apply to the
Nominee. 

  

	6.	Where an Award of Forfeitable Shares lapses to any extent, the Participant shall thereupon cease to have any beneficial interest in such forfeited shares. 

 

 - 17 -The Cookson Group US Stock Purchase Plan 2004- Scheme Rules

 Exhibit 4.7 - The Cookson Group US Stock Purchase Plan 2004— 
 Scheme Rules 
  
  

 THE COOKSON GROUP US STOCK

 PURCHASE PLAN 
 2004

  
 Approved by
the Annual General Meeting on 14 May 2004 
  
  
  

 CONTENTS 

					
	Clause	  	 	  	Page
	 1.
	  	Definition And Interpretation	  	1
	 2.
	  	Eligibility	  	1
	 3.
	  	Grant Of Options	  	2
	 4.
	  	Deposits	  	4
	 5.
	  	Limits	  	5
	 6.
	  	Purchase Accounts	  	5
	 7.
	  	Exercise Of Options	  	6
	 8.
	  	Takeover, Reconstruction And Winding Up	  	9
	 9.
	  	Variation Of Capital	  	9
	 10.
	  	Alterations	  	10
	 11.
	  	Miscellaneous	  	11

  
  

	1.	DEFINITION AND INTERPRETATION 

  
 In this Plan, unless the context other requires: 
  
 “the Board” means the board of directors of the Company or a committee appointed by such board of directors; 
  
 “the Code” means the United States Internal Revenue Code of
1986 (as amended); 
  
 “the Company” means
Cookson Group plc (registered in England and Wales No. 251977); 
  
 “Exercise Date” in relation to an option means a date specified by the Board, being not later than 18 months after the date of grant of the option; 
  
 “the London Stock Exchange” means the London Stock Exchange plc; 
  
 “Market Value” at any date means the fair market value of
shares in the Company on that date, as determined by the Board, provided that if on such date shares of that class are listed in The London Stock Exchange Daily Official List, the fair market value shall be the middle-market quotation of such shares
(as derived from that List) on that date or, if that date is not a dealing day, on the dealing day last preceding that date; 
  
 “Participant” means a person who holds an option granted under the Plan; 
  
 “Participating Subsidiary” means any Subsidiary to which the Board has resolved that the Plan shall for the
time being extend; 
  
 “Purchase Account” has
the meaning set out in Rule 6.1; 
  
 “the Plan”
means the Cookson Group US Stock Purchase Plan 2004 as herein set out but subject to any alterations or additions made under Rule 10 below; 
  
 “Subsidiary” means a body corporate which is incorporated in the United States and is a subsidiary of the Company within the meaning of
section 736 of the Companies Act 1985 and is a “subsidiary corporation” of the Company within the meaning of section 424(f) of the Code; 
  
 and expressions not otherwise defined herein have the same meaning as they have in the Code. 
  
 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	General Rule 

  
 Subject to Rule 2.3 below, an individual is eligible to be granted an option under the Plan on any day (“the grant day”) if (and only if):

  

	 	2.1.1	 	he is on the grant day an employee or director (who is also an employee) of a company which is a Participating Subsidiary, and 

  

	 	2.1.2	 	he satisfies the condition specified in Rule 2.2 below. 

  

 - 1 - 

	2.2	Service Condition 

  
 The condition referred to in Rule 2.1.2 above is that the individual shall at all times during a qualifying period ending at the relevant time have been a
full-time employee or full-time director (who is also an employee) of the Company or a Participating Subsidiary. 
  
 For the purposes of this Rule: 
  

	 	2.2.1	 	the relevant time is the date on which any invitation is given under Rule 3.2.1 below or such other time during the period of 2 years ending with the grant day as the Board may
determine (provided that no such determination may be made if it would have the effect that the qualifying period would not fall within the said 2-year period); 

  

	 	2.2.2	 	the qualifying period is the period of 12 months ending at the relevant time or such other period ending at the relevant time but falling within the 2-year period mentioned in
paragraph 2.2.1 above as the Board may determine; 

  

	 	2.2.3	 	an individual shall be treated as a full-time employee or full-time director of a company if (and only if) he is obliged to devote to the performance of the duties of his employment
or office with the company not less than 20 hours per week. 

  
 Any determination of the Board under Rules 2.2.1 or 2.2.2 above shall have effect in relation to every individual for the purpose of ascertaining whether he is eligible to be granted an option under the Plan on the
grant day. 
  

	2.3	Individuals not eligible  

  
 An individual is not eligible to be granted an option under the Plan at any time if he owns stock possessing 5 per cent or more of the total combined
voting power or value of all classes of stock of the Company (or of any Parent or Subsidiary corporation). The rules of section 424(d) of the Code shall apply in determining the stock ownership of an individual and stock which the employee may
purchase under the outstanding options shall be treated as stock owned by the employee. 
  

	3.	GRANT OF OPTIONS 

  

	3.1	Grant Procedure 

  
 Subject to Rules 3.2 and 3.3 below and to Rule 4.3 below, the Board will grant to any individual who is eligible to be granted and has applied for an
option under the Plan an option to acquire shares in the Company upon the terms set out in the Plan; and for this purpose an option to acquire includes an option to purchase (including an option to purchase treasury shares) and an option to
subscribe. All employees granted options under this Plan will have the same rights and privileges hereunder, to the extent required to comply with section 423(b)(5) of the Code. 
  

 - 2 - 

	3.2	Invitations 

  
 The Board shall ensure that, in relation to the grant of options under the Plan on any day: 
  

	 	3.2.1	 	every individual who is eligible to be granted an option thereunder on that day by virtue of satisfying the conditions specified in Rule 2.2 above has been given an invitation to
apply for such an option within a period of not less that 14 days from the date on which the invitation was given; 

  

	 	3.2.2	 	every such invitation is given on the same date and specifies the matters set out in Rule 3.2.4 below; and 

  

	 	3.2.3	 	every individual who is eligible to be granted such an option on the day in question has applied therefor in such form and manner as the Board may prescribe, and has proposed to
make a Purchase Account in connection therewith under which the deposits are determined in accordance with Rule 4.1 below, is in fact granted such an option on that day. 

  

	 	3.2.4	 	the matters which must be specified in an invitation as mentioned in Rule 3.2.2 above are: 

  

	 	(a)	 	what the payment for the purposes of Rule 3.6 below is, by virtue of Rule 4.2 below, to be taken as including; and 

  

	 	(b)	 	the maximum amount referred to in Rule 4.1 below. 

  

	3.3	Timing of invitations and grant of options 

  
 The time periods in which invitations may be issued and options granted are as follows: 
  

	 	3.3.1	 	Invitations may only be issued under the Plan within the period of 6 weeks beginning with the date on which the Plan is approved and adopted by the Company or the dealing day next
following the date on which the Company announces its 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. 

  

	 	3.3.2	 	Options may only be granted within the period of 10 years beginning with the date on which the Plan is approved and adopted as aforesaid. 

  

	3.4	Consideration for grant 

  
 The consideration for the grant to any individual of any option under the Plan shall be his proposing to make deposits into a Purchase Account in
connection therewith and in all other respects agreeing to be bound by the provisions of the Plan. 
  

	3.5	Exercise price 

  
 The price at which shares may be acquired by the exercise of options granted on any day under the Plan shall be determined by the Board and stated on that
day, provided that: 
  

	 	3.5.1	 	the price shall not be less than 85% of the Market Value (expressed in sterling) on the Grant Date; 

  

 - 3 - 

	 	3.5.2	 	except in the case of an option to acquire shares otherwise than by subscription, the price shall not be less than the nominal value of those shares. 

  

	3.6	Number of shares under option 

  
 The number of shares in respect of which an option shall be granted to any individual under the Plan shall be the maximum number which can be paid for, at
the price determined under Rule 3.5 above, with the monies equal to the expected amount of the Participant’s share of the funds on the Exercise Date in the Purchase Account to be made in connection with the option (as ascertained in accordance
with Rule 4 below). 
  

	3.7	Non-transferability and bankruptcy 

  
 Subject to Rule 7.3 below, an option granted under the Plan to any individual shall not be capable of being transferred by him and shall lapse forthwith
if it is so transferred or if a petition in bankruptcy is filed with respect to such individual. 
  

	4.	DEPOSITS 

  

	4.1	General rule—Amount of deposits 

  
 Subject to Rule 4.3 below, for the purposes of Rule 3.2.3 above, the amount of the deposits shall be the amount which the individual shall have specified
in his application for the option that the Participating Subsidiary which employs him should withhold from the periodic payment of his after-tax wages or, if lower, the maximum permitted amount, that is to say the maximum amount which, when
aggregated with the amount of his deposits under any other Purchase Account linked to the Plan or any other similar plan, does not exceed in any period of twelve calendar months $25,000 or such lower maximum amount as may from time to time be
determined by the Board. 
  

	4.2	Meaning of “expected amount” 

  
 Subject to Rules 4.3.1 and 4.3.2 below, for the purposes of Rule 3.6 above, the expected amount shall be taken as including interest unless the Board
shall have determined, in relation to every option to be granted on the day in question, that it shall be taken as not including interest. 
  

	4.3	Scaling back 

  
 If the grant of options under the Plan on any day in accordance with the preceding provisions of this Rule would cause any of the limits mentioned in Rule
5 below to be exceeded, then, in relation to options so granted on that day, the provisions set out below shall be successively applied (in the order in which they are therein set out) so far as is necessary to ensure that those limits are not
exceeded. 
  
 The said provisions are: 
  

	 	4.3.1	 	for those purposes, if the repayment would otherwise be taken as including interest, it shall be taken as not including interest; 

  

	 	4.3.2	 	unless Rule 4.3.3 below applies, the amount of the deposit determined under Rule 4.1 above shall be taken as successively reduced by 1 per cent. thereof, 2 per cent. thereof, 3 per
cent. thereof and so on the and then rounded up to the nearest dollar; 

  

 - 4 - 

	 	4.3.3	 	if the Board shall have determined that this paragraph is to apply, for the purpose of determining the amount of the said monthly contribution, the maximum permitted amount referred
to in Rule 4.1 above shall be taken as successively reduced by $1, $2, $3 and so on; and 

  

	 	4.3.4	 	the Board shall not grant any options under the Plan on the day in question. 

  

	5.	LIMITS 

  

	5.1	10 per cent. in 10 year limit 

  
 No options shall be granted under the Plan which would, at the time they are granted, cause the number of shares which shall have been or may be issued in
pursuance of options granted in the period of 10 years ending at that time, or been issued in that period otherwise than pursuant to options, under the Plan or under any other employees’ share scheme adopted by the Company to exceed such number
as represents 10 per cent. of the ordinary share capital of the Company in issue at that time. 
  

	5.2	Plan limit 

  
 No options shall be granted under the Plan to acquire a number of shares which exceeds such number as may have been determined by the Board for this
purpose. Notwithstanding any other provision of the Plan (including the provisions of this Rule 5), no more than 50,000,000 shares of the Company may be placed under option under the Plan. 
  

	5.3	Effect of limits 

  
 Any option granted under this Plan shall be limited and take effect so that the above limits in this Rule 5 are complied with. 
  

	5.4	Limits: Treasury Shares 

  
 Any treasury shares held by the Company which are transferred to Participants in satisfaction of options shall be treated as issued for the purposes of
Rule 5.1 above. 
  

	6.	PURCHASE ACCOUNTS 

  

	6.1	Opening of account and rate of interest 

  
 An interest-bearing account with each Participating Subsidiary shall be established for the purposes of acquiring shares by Participants under the Plan.
The rate of interest shall be fixed for the period from the date of grant to the Exercise Date and shall be determined by the Board prior to the grant of an option. 
  

 - 5 - 

	6.2	Conditions relating to employee payments 

  
 Every individual who applies for an option under the Plan must specify an amount which the Participating Subsidiary which employs him can withhold from
the periodic payment of his after-tax wages (and such amount may be reduced pursuant to Rule 4.3 above). 
  

	6.3	Timing of payments 

  
 Such Participating Subsidiary shall commence withholding from each payment of wages three months after the date of grant of the relevant option and
continue thereafter up to the Exercise Date (or if earlier the date the option is exercised or ceased to be exercisable). If the frequency of the payment of wages changes (for example, from weekly to monthly) the amount to be withheld shall be
adjusted proportionately. Every Participant shall be deemed to have given instructions to the employing Participating Subsidiary to deposit the amount withheld in the Purchase Account. 
  

	6.4	Withdrawal of payments 

  
 A Participant may at any time withdraw the amounts deposited in a Purchase Account by giving notice in writing to the employing Participating Subsidiary
but the related option shall thereupon cease to be capable of exercise. The Participating Subsidiary shall pay such amounts, together with interest, to the Participant who has given such a notice in writing as soon as administratively feasible.

  

	7.	EXERCISE OF OPTIONS 

  

	7.1	General Rule 

  
 Subject to Rules 7.1.1 and 7.1.2 below, a Participant shall be deemed to have exercised the relevant option on the Exercise Date and to have authorised
his employing Participating Subsidiary to pay the monies standing in the relevant Purchase Account to the Company as the monies paid for the shares on exercise. 
  
 A Participant shall be deemed not to have exercised his option on the Exercise Date if: 
  

	 	7.1.1	 	a written notice is given by the Participant to his employing Participating Subsidiary not to exercise his options no later than 10 days prior to the Exercise Date and no sooner
than 40 days prior to the Exercise Date; or 

  

	 	7.1.2	 	the middle market quotation of a share (as derived from the London Stock Exchange Daily Official List) on the day prior to the Exercise Date (converted into US dollars) (or if the
shares are not so quoted, the fair market value of the share on that day) is below the exercise price (converted into US dollars) 

  
 in which case his option shall cease to be capable of exercise and the Participant shall receive as soon as administratively feasible after the Exercise
Date his share of the funds, including interest, in the Purchase Account in respect of such option, 
  

	7.2	Cessation of employment 

  
 In the event that the Participant ceases to hold the office or employment by virtue of which he is eligible to participate in the Plan (otherwise than by
reason of any of the 
  

 - 6 - 

 circumstances set out in Rules 7.3 and 7.4 below) before the Exercise Date, options granted to him under
the Plan shall terminate, and as soon as administratively feasible after receipt of a written notice by the Participant the employing Participating Subsidiary shall pay to him his share of the funds, including interest, then on deposit in the
Purchase Account. For the purposes of this Rule 7, the employment status of an individual will be determined in accordance with the Proposed US Treasury Regulations Section 1.421-7(h), the final form thereof or any successor regulation or enactment
thereto. 
  

	7.3	Deceased participants 

  
 Subject to Rule 7.5 below, if any Participant dies before the Exercise Date and at a time when he holds the office or employment by virtue of which he is
eligible to participate in the Plan or is entitled to exercise the option by virtue of Rule 7.4 below, the option may (and must, if at all) be exercised by his personal representatives (or his executor, administrator, heir or legatee) within 12
months after the date of his death. 
  

	7.4	Injury, disability, work force reduction, retirement and transfer out of the Company’s group 

  
 Subject to Rule 7.5 below, if any Participant ceases to hold the office or employment by virtue of which he is eligible to
participate in the Plan (otherwise than by reason of his death), the following provisions apply in relation to any option granted to him under the Plan: 
  

	 	7.4.1	 	if he so ceases by reason of injury, disability, work force reduction or job elimination or retirement under his employing Participating Subsidiary’s retirement plan, the
option may (and subject to Rule 7.3 above must, if at all) be exercised within 3 months of his so ceasing; 

  

	 	7.4.2	 	if he so ceases by reason only that the office or employment is in a company of which the Company ceases to have control, or relates to business or part of a business which is
transferred to a person who is not a company of which the Company has control, the option may (and subject to Rule 7.3 above must, if at all) be exercised within 3 months of his so ceasing. 

  
 In the event that an option is exercised pursuant to Rules 7.4.1 and 7.4.2
above, the Participating Subsidiary shall pay the Participant’s share of funds standing in the relevant Purchase Account attributable to that option to the Company as the monies paid for the shares on exercise, but if the option is not
exercised by the end of the relevant periods the Participant shall receive, as soon as administratively feasible after the expiry of such periods, his share of the funds in the Purchase Account in respect of such option. 
  

	7.5	Timing of exercise and funds available for exercise 

  
 An option granted under the Plan shall not be capable of being exercised later than the Exercise Date and, subject to Rule 7.6 below, the only monies
which may be paid for shares on exercise (whether such exercise takes place on or before the Exercise Date) shall be the Participant’s share of the funds, including interest, in the Purchase Account in respect of such option at that time.

  

 - 7 - 

	7.6	Effects of exchange rate 

  
 If on exercise of an option (whether such exercise takes place on or before the Exercise Date), changes in the exchange rate between the US dollar and
sterling result in a Participant’s share of the funds, including interest, in the Purchase Account being insufficient to allow him to acquire such number of shares as he would have been able to acquire if the said exchange rate had remained
constant since the date of grant of the option, he shall be entitled (but only within the limit set out in section 423(b)(8) of the Code) to make up any shortfall from his own funds. 
  

	7.7	Allotment and transfer timetable 

  
 Within 30 days after an option under the Plan has been exercised by any person, the Board on behalf of the Company shall allot to him (or his nominee) or,
as appropriate, procure the transfer to him (or his nominee) of the number of shares in respect of which the option has been exercised. 
  

	7.8	Share rights 

  
 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. 
  

	7.9	Admittance of shares to the List 

  
 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. 
  

	7.10	Fractional shares 

  
 Fractional shares will not be issued under the Plan and any accumulated Purchase Account deposits which would have been used to purchase fractional shares
will be returned to the employee promptly following the earliest of the Exercise Date, the actual date of exercise, or the latest date on which the option could otherwise have been exercised. 
  

	7.11	Restrictions on allotment of shares  

  
 Shares shall not be issued pursuant to the exercise of an option under the Plan unless the exercise of such option and the issuance and delivery of such
shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, the United States Securities Act of 1933 as amended, the United States Securities Exchange Act of 1934, the United Kingdom Financial Services
and Markets Act 2000, the provisions of the documents, The Listing Rules published by The London Stock Exchange and the City Code on Takeovers and Mergers and any rules and regulations promulgated under any of the foregoing, and shall be further
subject to the approval of Counsel for the Company with respect to such compliance. 
  

 - 8 - 

	7.12	Restrictions on exercise of options 

  
 As a condition to the exercise of an option the Company may require the person exercising such option to represent and warrant, in a form satisfactory to
the Company, at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares, or to represent and to warrant with respect to such other matters as the
Company deems appropriate if, in the opinion of Counsel for the Company, such a representation is required by way of the aforementioned relevant or other applicable provisions of law. 
  

	8.	TAKEOVER, RECONSTRUCTION AND WINDING UP 

  

	8.1	General offers 

  
 If any person obtains control of the Company (within the meaning of section 719 of the Income Tax (Earnings and Pensions) Act 2003) 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 an option granted under the Plan may, subject to
Rules 7.3, 7.4 and 7.5 above, be exercised within one month (or such longer period as the Board may permit) of such notification, but not later than 6 months after such person has obtained such control. 
  

	8.2	General offers: concert parties 

  
 For the purposes of Rule 8.1 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. 
  

	8.3	Compulsory acquisition, schemes of arrangements and winding up 

  
 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
the 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, the Board shall forthwith notify every Participant thereof and an option granted under the Plan may, subject to Rules 7.3, 7.4 and 7.5 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. 
  

	9.	VARIATION OF CAPITAL 

  

	9.1	General rule 

  
 Subject to Rule 9.3 below, in the event of any increase or variation of the share capital of the Company (whenever effected), the Board may make such
adjustment as it considers appropriate under Rule 9.2 below. 
  

 - 9 - 

	9.2	Method of adjustment 

  
 An adjustment made under this Rule 9.2 shall be to one or more of the following: 
  

	 	9.2.1	 	the number of shares in respect of which any option granted under the Plan may be exercised; 

  

	 	9.2.2	 	the price at which shares may be acquired by the exercise of any such option; 

  

	 	9.2.3	 	where any such option has been exercised but no shares have been allotted or transferred pursuant to such exercise, the number of shares which may be so allotted or transferred and
the price at which they may be acquired. 

  

	9.3	Adjustment below nominal value 

  
 An adjustment under Rule 9.2 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
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. 
  

	9.4	Notification of adjustment 

  
 As soon as reasonably practicable after making any adjustment under Rule 9.2 above, the Board shall give notice in writing thereof to any Participant
affected thereby. 
  

	10.	ALTERATIONS 

  

	10.1	General rule 

  
 Subject to Rule 10.2 below, the Board may at any time alter or add to all or any of the provisions of the Plan in any respect. 
  

	10.2	Shareholder approval requirement 

  
 Subject to Rule 10.3 below, no alteration or addition to the advantage of Participants to any of Rules 2, 3.3., 3.5, 3.6, 4.1, 5.1 and 5.2, 5.4, 7.3 to
7.5 inclusive, 7.8, 8.1 to 8.3 inclusive and 9.1 to 9.3 inclusive shall be made under Rule 10.1 above, without the prior approval by ordinary resolution of the members of the Company in general meeting. 
  

	10.3	Exceptions to shareholder approval requirement 

  
 Rule 10.2 above shall not apply to any minor alteration or addition 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 Participants, the Company or any Subsidiary. 
  

	10.4	Notification of alteration 

  
 As soon as reasonably practicable after making any alteration or addition under Rule 10.1 above, the Board shall give notice in writing thereof to any
Participant affected thereby. 
  

 - 10 - 

	11.	MISCELLANEOUS 

  

	11.1	Employment 

  
 The rights and obligations of any individual under the terms of his office or employment with the Company or a Subsidiary 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 waive all and any 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. 
  

	11.2	Administration of Plan 

  
 The Board shall administer the Plan. Subject to the express provisions of the Plan, the Board shall have plenary authority in its discretion to interpret
and construe any and all provisions of the Plan, to adopt and to vary rules and regulations for administering the Plan, and to make all other determinations deemed necessary or advisable for administering the Plan. Subject to the express provisions
hereof, the Board shall have the authority, in its sole and absolute discretion, (i) to determine the terms and provisions of the respective option agreements including provisions defining or otherwise relating to the effect of termination of
employment, and the effect of approved leaves of absence (consistent with any applicable regulations of the Internal Revenue Service); (ii) to construe the respective option agreements and the Plan and (iii) to decide conclusively all disputes and
disagreements arising under the Plan. The Board’s determination on the foregoing matters shall be conclusive. 
  

	11.3	Board power to correct Plan 

  
 The Board may correct any defect or omission or reconcile any inconsistency in the Plan, in the manner and to the extent it shall deem desirable. The
Board may appoint agents, attorneys, consultants or other persons to carry out such functions under the Plan, as it determines desirable or appropriate. 
  

	11.4	Governing law 

  
 The Rules of the Plan and the rights and obligations of any individual thereunder shall be governed by and construed in accordance with the law of
England, without regard to its conflicts of law rules or principles. 
  

	11.5	Provision of financial assistance 

  
 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, or enter into any guarantee or indemnity for those purposes, to the extent permitted by section 153 of the Companies Act 1985. The Company and any Subsidiary may take such action to withhold any income or other taxes from
any amounts paid or property transferred under this Plan, under such circumstances and in such manner as the Company or Subsidiary determines appropriate without limiting the foregoing, it shall be a condition of exercise of an option granted under
this Plan that the Participant satisfies all withholding requirements with respect to exercises pursuant to the Plan. 
  
  

 - 11 - 

	11.6	Notices 

  
 Any notice or other communication under or in connection with the Plan may be given either: 
  

	 	11.6.1	 	by personal delivery or by sending the same by post, in the case of a company to its registered office, and in the case of an individual to his last known address, or, where he is a
director or employee of a Participating Subsidiary, either to his last known address or to the address of the place of business at which he performs the whole or substantially the whole of the duties of his office or employment; or

  

	 	11.6.2	 	in an electronic communication to an address for the time being notified for that purpose to the person giving the notice. 

  

	11.7	Effective Date 

  
 The Plan is effective from 14 May 2004, being the date on which it was approved by the holders of a majority of the shares in the Company entitled to vote
thereon. 
  
  

 12

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