Document:

Prepared and filed by St Ives Burrups

Exhibit 4.25

EMPLOYMENT AGREEMENT

  incorporating a Statement of Terms pursuant
  to

  section 1, Employment Rights Act 1996

This Agreement is made by way of deed on June 2001 between David Howell of  Cubbins, Dairy Lane, Crockham Hill, Westerham, Kent TN8 6RA and Last Minute Network Limited trading as lastminute.com of 4 Buckingham Gate, London SW1E 6JP (“the Company”).

WHEREAS it is the intention of the parties that this document be executed as a deed.

	
1.	
JOB TITLE/DUTIES

	
1.1.	
Your job title is Chief Financial Officer.  

	
1.2.	
You shall be appointed to the Board of Directors of Lastminute.com plc at the Board Meeting on 4 July 2001 and shall remain as a member of the Board throughout your employment with the Company.

	
2.	
STARTING DATE

	
2.1.	
Your employment with us will start on 2nd July 2001 and shall continue until terminated by notice in writing in accordance with clause 2.2.

	
2.2.	
Subject to clauses 2.3 and 5, we may terminate your employment at any time by giving you six months’ notice in writing.  

	 	Unless otherwise agreed, you will give us
      a minimum of six months’ notice of your leaving.

	
2.3.	
If you are guilty of gross misconduct including dishonesty, gross negligence or any other serious misconduct, we shall be entitled to terminate your employment with immediate effect.

	
2.4.	
If either party gives notice to terminate this agreement, for a period not exceeding the notice period referred to in clause 2.2, you may be required by us in our absolute discretion not to attend your place of work at any time and not to perform any duties for the Company or to perform only such duties, specific projects or tasks as are assigned to you expressly by the Company (provided that such duties, projects or tasks are consistent with your status) provided that you will be entitled to receive full pay and benefits (including bonus) during such period.

	
3.	
PERIOD OF CONTINUOUS EMPLOYMENT

	 	Your period of continuous employment with us will start on 2nd July 2001.

 

 

	
4.	
REMUNERATION

	
4.1.	
Your salary is £140,000 per annum, payable in equal monthly instalments in arrears by direct transfer into your bank account on or before the last day of each month.  Your salary will accrue from day to day and will be adjusted during the month in which you start and finish your employment with us according to the number of days you work during that month.  

	 	 	You will also be entitled to an annual discretionary bonus of up to 30% of base salary which will be paid, at your option, in cash or allocated as an additional grant of share options, (in addition to those granted to you under clause 12), on the anniversary of joining the Company.  The targets upon which the bonus is calculated shall be agreed between the Company and you by no later than 1 September 2001.

	 	 	Such payment will be subject to deductions for tax and national insurance and any other deductions that may be required from time to time.

	
4.2.	
Your salary shall be reviewed by the Board annually on the anniversary of the commencement of your employment. 

	
4.3.	
We shall be entitled to make deductions from your remuneration in respect of any overpayments made to you by us.

	
5.	
LIQUIDATED DAMAGES

	
5.1.	
The Company may terminate the contract immediately or on short notice, and should it elect to do so (other than in accordance with clause 2.3), the Company shall make a payment in lieu of any applicable period of notice of an amount in cash equivalent to the total amount referred to in clause 5.2 (calculated pro rata where short notice is given).  The Company shall pay such amount to you in one lump sum (subject to deduction of applicable tax and national insurance but without any deduction for mitigation) on the date of termination of your employment (“the Termination Date”).

	
5.2.	
The total amount of cash referred to in clause 5.1 is the aggregate of:- 

	  	5.2.1	 6 months’ salary (as at
      the Termination Date); and

	 	 5.2.2	 a sum equal to the cost the Company
      would have incurred in providing you with the benefits referred to in clause
      11 had your employment continued for a period of 6 months following the
      Termination Date;

	 	 5.2.3	 a sum in lieu of the bonus(es)
      which would have been paid in respect of the period 6 months following the
      Termination Date pro rated to reflect the period since the last bonus payment
      (assuming the Company exercised its discretion in your favour, or, if not,
      the date you would have received the last bonus payment) or if the term
      of your employment is less than one year the date of commencement of your
      employment up to the date 6 months’ following the Termination Date.

2

 

	
5.3.	
The amounts payable pursuant to clause 5.1 shall be in lieu of any notice, or other benefits or payments to which you may otherwise be entitled on termination of this Agreement but without prejudice to your statutory rights.

	
6.	
EXPENSES

	 	We will reimburse to you during your employment (against receipts or other appropriate evidence) all expenses properly and reasonably incurred by you in the course of your duties. 

	
7.	
WORKING HOURS

	 	Your normal working hours are from 9.30 am to 6.30 pm Monday to Friday, with a one-hour lunch break, but the requirements of your employment do call for some flexibility and you will be expected to work slightly different hours from time to time.  In particular you agree, where necessary, to work on average in excess of 48 hours per week.

	
8.	
PLACE OF WORK

	 	Your normal place of work is at 4 Buckingham Gate, London SW1E 6JP.

	
9.	
HOLIDAYS AND HOLIDAY PAY

	 	Your holiday entitlement is 25 days per year, plus all statutory, bank and public holidays in England and Wales.  Deductions from the final salary due to you on the termination of your employment will be made in respect of any holidays taken in excess of your entitlement. You will be entitled to any pay in lieu of holiday accrued but not taken only at the end of your employment save where it has been terminated in accordance with clause 2.3.  During holidays you are entitled to your normal rate of pay.

	
10.	
ABSENCE THROUGH SICKNESS OR INJURY AND SICKNESS PAY

	
10.1.	
In the event of sickness or injury you are to send promptly to us a self-certificate, in a form obtainable from the office for an absence of up to seven days and thereafter an intermediate certificate each week signed by a medical practitioner until your return to work. 

3

 

	
10.2.	
You shall continue to be paid and continue to be entitled to any other contractual benefits during absence due to illness, accident or other incapacity for a total of 13 weeks in any period of fifty-two consecutive weeks.  For any additional or continuing absence after that due to illness, accident or other incapacity, payment of salary and continued provision of contractual benefits under this Agreement shall be at the discretion of the Company.  

	
10.3.	
Any payment of salary or provision of benefits shall be inclusive of any statutory sick pay or social security benefits to which you may be entitled.  You are required to co-operate in the maintenance of necessary records for Statutory Sick Pay purposes and for the purpose of calculating entitlement to Statutory Sick Pay applicable to your employment.  Qualifying days are Monday to Friday.

	
10.4.	
Subject to the provisions of the Access to Medical Reports Act 1988, you agree to be examined at our expense by a doctor nominated by us if at any time we so request and you authorise such doctor to disclose and to discuss with us and our advisers the results of such examinations.

	
11.	
PENSION SCHEME, INSURANCES AND HEALTHCARE

	
11.1.	
You will be entitled to a sum equal to 14% of your salary under clause 4.1 for the purpose of making contributions, at you option, into either a personal pension fund of your choice or the Company pension scheme, such sum to accrue from day to day and to be paid to you in equal monthly instalments in arrears by direct transfer into your bank account on or before the last day of each month.

	 	A Contracting Out Certificate is not in force in respect of your employment.

	
11.2.	
You, your spouse and your dependants under the age of 25 will be entitled to participate in the Company healthcare scheme.  Your participation in the healthcare scheme will be at the Company’s expense.  You will pay to the Company the cost to the Company of the participation by your spouse and your dependants under the age of 25 in the healthcare scheme.

	 	 

	
11.3.	
In addition, you will be entitled to participate at the Company’s expense in (a) its permanent health and disability insurance scheme and (b) its life insurance scheme which provides for payment of a sum equal to four times your salary payable under clause 4.1 as at the date of your death.

	
12.	
SHARE OPTIONS

	 	The Company has introduced a Share Option Scheme (‘the Scheme’) in which you are eligible to participate.  On 2nd July 2001, you will be granted an option to purchase 1,000,000 ordinary shares in the capital of lastminute.com plc (“the Option”).  The Option shall be subject to the rules of the Scheme from time to time in force.   

4

 

	
13.	
CONFIDENTIALITY

	
13.1.	
You shall not during or at any time after the termination of your employment with the Company use for your own purposes or disclose to any third party any Confidential Material and shall use your best endeavours to prevent such publication or disclosure. 

	
13.2.	
All Confidential Material and all other documents, papers and property which may have been made or prepared by you, or at your request or have come into your possession or under your control in the course of your employment or which relate in any way to the Company, the business (including prospective business) or affairs of the Company or of any customer, supplier, agent, distributor or sub-contractor of the Company shall as between the Company and you be deemed to be the property of the Company.  You shall deliver up all such documents and other property, including all copies, to the Company immediately upon the termination of your employment or at any earlier time on demand. 

	
13.3.	
You shall immediately inform the Company if you become aware of the possession, use or knowledge of any of the Confidential Material by any person not authorised to possess, use or have knowledge of the Confidential Material, whether during or after your employment  and shall at the Company’s request provide such reasonable assistance as is required to deal with such event.

	
13.4.	 The provisions of this clause shall
      not apply to any Confidential Material which is in or enters the public
      domain other than by breach of this agreement, is obtained from a third
      party who is lawfully authorised to disclose such information, or is authorised
      for release by the prior written consent of the Board.

	
13.5.	
Nothing in this clause shall prevent you from disclosing Confidential Material where it is required to be disclosed by judicial, administrative, governmental or regulatory process in connection with any action, suit, proceeding or claim or otherwise by applicable law.

	 	For the purpose of this clause "Confidential
      Material" means any information relating to the Company or the business,
      prospective business, technical processes, computer software (both source
      code and object code), intellectual property rights or finances of the Company,
      or compilations of two or more items of such information whether or not
      each individual item is in itself confidential, including without limitation
      price lists, lists of customers and suppliers (both current and those who
      were customers or suppliers during the previous two years), which comes
      into your possession by virtue of your employment, and which the Company
      regards, or could reasonably be expected to regard, as confidential, whether
      or not such information is reduced to a tangible form or marked in writing
      as "confidential", and any and all information which has been or may be
      derived or obtained from any such information.

5

 

	
14.	
RESTRICTIONS

	
14.1.	
You agree that you will not either alone or jointly with another or others, whether as principal agent, director, partner, shareholder, employee, company or in any other capacity, whether directly or indirectly through any other person, firm or company and whether for your own benefit or that of others:-

	
14.1.1	
for 6 months after the termination of your employment be employed in or engaged by or interested or concerned in a Competing Business ( or part thereof) in any country in Europe in which on the termination of your employment to the Company is operating; 

	
14.1.2	
for 6 months after the termination of your employment entice, induce or encourage a Customer or a Prospective Customer to transfer or remove custom from the Company;

	
14.1.3	
for 6 months after the termination of your employment solicit or accept business from a Customer or a Prospective Customer for the supply of Relevant Services;

	
14.1.4	
for 6 months following the termination of your employment, for a Competing Business solicit, interfere with or endeavour to entice away or engage or employ or offer employment to (or procure or assist the soliciting, interference with, enticement, engagement, employment or offering) any Employee, or do any act whereby such Employee is encouraged to terminate his employment, appointment or contract with us, whether or not such person would by reason of terminating his service with us commit a breach of his contract.

	
14.2.	
You must not at any time during or after the termination of your employment use any name used by the Company at the date of the termination of your employment or any name likely to cause confusion with it in the minds of members of the public for the purposes of a Competing Business whether by using such name as part of a corporate name or otherwise.

	
14.3.	
You must not at any time after the termination of your employment represent yourself as being employed by the Company.

	 	 	For the purpose of this clause:- 

	 	 	"Competing Business" means a business or concern which is engaged in a business competitive with that carried out by the Company at the date of termination of your employment with which you have been involved during the 12 months preceding such date.  This shall include, without limit, E-bookers, Expedia, Travelocity, Teletext, Priceline, Online Travel Portal and Thomascook.com; and

6

 

	 	 	"Customer" means any person, firm
      or company who during the 12 months preceding the date of termination of
      your employment was a customer of the Company (whether or not services were
      actually provided during such period) for the purpose of a Relevant Business
      and with whom you materially dealt during that period or were in possession
      of confidential information about such customer in the performance of your
      duties for the Company; and

	 	 	"Employee" means any of our employees, directors, consultants or independent contractors at the date of termination of your employment or who was such an employee, director or independent contractor at any time in the 12 months preceding such date and in each case who worked or provided services in a senior executive, managerial, sales, programming or design capacity or has confidential information relating to our business or contact with any Customer or Prospective Customer and with whom you had material dealings in the performance of your duties during the 12 months immediately preceding the date on which your employment terminates; and

	 	 	"Prospective Customer" means any person, firm or company with whom at the date of termination of your employment the Company is or has during the 3 months preceding such date been in negotiations (save where the Company has broken off such negotiations) with a view to such person, firm or company becoming a customer of such company and with whom you were involved in such negotiations or services; and

	 	 	"Relevant Business" means any business of the Company in which, pursuant to your duties, you were materially involved at any time during the 12 months preceding the date of termination of your employment; and

	 	 	"Relevant Services" means goods or services competitive with those which on the termination of your employment the Company was supplying or negotiating or actively and directly seeking to supply to a Customer for the purposes of a Relevant Business.

	
14.4.	
If the Company requires you not to perform any of your duties and/or excludes you from the Company’s premises (“garden leave”) as set out in clause 2.4 for some or all of any period of notice, the period of the post-termination restrictions set out in this clause 14 shall be reduced by the length of garden leave served before the Termination Date.

	
14.5.	
Each of the restrictions contained in this clause constitutes an entirely separate and independent restriction and is considered by the parties to be reasonable and necessary for the protection of the legitimate interest of the company but, if any such restriction or part of it shall be found void, invalid, illegal or unenforceable by any court of competent jurisdiction but would be valid if some words were deleted from it, or the period of it reduced, or area covered or range of activities reduced, such restriction shall apply with such modification as may be necessary to make it valid and effective.

7

 

	
14.6.	
In the event of any clause or part of a clause contained in this Agreement being declared invalid or unenforceable by any court of competent jurisdiction, all other clauses or parts of clauses contained in this Agreement shall remain in full force and effect and shall not be affected thereby.

	
15.	
NON-EXECUTIVE DIRECTORSHIP

	 	The Company agrees that:

	
15.1.	
you may continue to hold your non-executive directorship of Nestor Healthcare Group plc for the duration of your employment with the Company; and

	
15.2.	
you shall be entitled dedicate up to 15 working days’ per year in order to carry out your duties in connection with your appointment (such days as you intend to dedicate to be notified by you to the Company not less than 7 days in advance).

	
16.	
INTELLECTUAL PROPERTY

	
16.1.	
If during the term of your employment you create any invention, copyright work, database, discovery or process or any improvement of any kind ("Work") relating or capable of being applied to the business of the Company, then any intellectual property right arising or obtainable in respect of any such Work shall be the property of the Company. You shall at our request and expense do all acts necessary to secure appropriate forms of protection for the intellectual property and/or vest ownership fully in the Company.

	
16.2.	
Decisions as to the protection or exploitation of any intellectual property shall be in the absolute discretion of the Company.

	
16.3.	
You hereby irrevocably appoint the Company to be your attorney in your name and on your behalf to execute documents, to use your name and to do all things which may be necessary or desirable for the Company to obtain for itself or its nominees the full benefit of the intellectual property and you agree that a certificate in writing, signed by and director or the secretary of the Company or any instrument or act which falls within the authority hereby conferred shall be conclusive evidence that such is the case so far as any third party is concerned.

8

 

	
17.	
DISCIPLINARY RULES AND GRIEVANCE PROCEDURES

	 	Any matter of discipline will be considered and determined by the Board of directors of the Company, whose decision will be final. If you have any grievance relating to your employment, you should apply in writing to the Group Managing Director of the Company.

	
18.	
HEALTH AND SAFETY

	 	The policy of the Company is to regard
      the promotion of health and safety measures as a mutual objective for management
      and employees at all levels.

	 19.	 COMPANY RECONSTRUCTION
	 	You will have no claim in respect of the termination
      of your employment if:

	
19.1.	
such termination is by reason only of the liquidation of your employer for the purposes of amalgamation or reconstruction; and

	
19.2.	
you are offered comparable employment with a company resulting from such amalgamation or reconstruction on terms no less favourable than the terms hereof.

	
20.	
OTHER AGREEMENTS

	 	All other statements (if any) of the terms of your employment are hereby abrogated and superseded.  There are no collective agreements which directly affect the terms and conditions of your employment.

	
21.	
CHOICE OF LAW

	 	This agreement shall be governed by English law and each party submits to the non-exclusive jurisdiction of the English courts.

	
22.	
CHANGES IN PARTICULARS OF EMPLOYEE

	 	You must notify us in writing:

	
22.1.	
of any change in your name, address, marital status or next-of-kin within one month of such change; and

	
22.2.	
forthwith of your conviction for a criminal offence or if you become bankrupt, apply for or have made against you, a receiving order, make any composition with your creditors or commit any act of bankruptcy.

9

IN WITNESS whereof this Agreement
  has been executed as a deed and delivered the day and year first before written.

EXECUTED as a deed by

  Last Minute Network Limited

  acting by 

	Director	 
	
	 
	Director/Secretary	 
	 	 
	SIGNED as a deed by

      David Howell	 
	 	 
	/s/ David Howell
        
	 
	
	 
	 	 
	
	 
	Witness	 
	 	 
	Address	 
	 	 
	Occupation	 

10Prepared and filed by St Ives Burrups

Exhibit 4.26

 
	 	
	 
	 	LASTMINUTE.COM PLC 
 SHARESAVE SCHEME 	 
	 	
	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	APPROVED BY SHAREHOLDERS
      AND 

      ADOPTED BY THE BOARD ON 

      14 FEBRUARY 2002	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	New Bridge Street Consultants

        20 Little Britain

        London EC1A 7DH

      Inland Revenue reference: SRS 2917
	 

Back to Contents

CONTENTS

	 	 	Page
	 	 	 
	1.	DEFINITIONS AND INTERPRETATION	1
	 	 	 
	2.	ELIGIBILITY	2
	 	 	 
	3.	GRANT OF OPTIONS	3
	 	 	 
	4.	LIMITS	5
	 	 	 
	5.	EXERCISE OF OPTIONS	6
	 	 	 
	6.	TAKEOVER, RECONSTRUCTION AND WINDING UP	9
	 	 	 
	7.	VARIATION OF CAPITAL	11
	 	 	 
	8.	ALTERATIONS	11
	 	 	 
	9.	MISCELLANEOUS	12

Back to Contents

	
1.
	
DEFINITIONS AND INTERPRETATION

	
(1)
	
In this Scheme, unless the context otherwise requires:

		 	“3-Year Option”,
          “5-Year Option” and “7-Year Option”
          have the meanings given in sub-rule 3(2);

    	 	“Associated Company”
          means an associated company within the meaning given to that expression
          by section 187(2) of the Taxes Act 1988 for the purposes of paragraph
          23 of Schedule 9;

    	 	“the Board”
          means the board of directors of the Company or a committee appointed
          by them;

    	 	“Bonus Date”
          means the earliest date on which the bonus is payable under a 3-Year
          option or, as the case may be, a 5-Year Option or in the case of a 7-Year
          Option the earliest date on which the maximum bonus is payable; and
          for this purpose “payable” means payable under the Savings
          Contract made in connection with the option;

    	 	“the Company”
          means Lastminute.com plc (registered in England and Wales No. 3852152);

    	 	“the Grant Date”
          shall be construed in accordance with sub-rule 2(1);

    	 	“the London Stock
          Exchange” means London Stock Exchange plc;

    	 	“Participant”
          means a person who holds an option granted under this Scheme;

    	 	“Participating Company”
          means the Company or any Subsidiary to which the Board has resolved
          that this Scheme shall for the time being extend;

    	 	“Savings Body”
          means any building society, institution authorised under the Banking
          Act 1987 or relevant European institution (within the meaning of Schedule
          15A to the Taxes Act 1988) with which a Savings Contract can be made;

    	 	“Savings Contract”
          means an agreement to pay monthly contributions under the terms of a
          certified contractual savings scheme, within the meaning of section
          326 of the Taxes Act 1988, which has been approved by the Inland Revenue
          for the purposes of Schedule 9;

    	 	“Schedule 9”
          means Schedule 9 to the Taxes Act 1988;

    	 	“Subsidiary”
          means a body corporate which is a subsidiary of the Company (within
          the meaning of section 736 of the Companies Act 1985) and of which the
          Company has control (within the meaning of section 840 of the Taxes
          Act 1988);

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

    	 	“Trustees”
          means the trustee or trustees for the time being of any Qualifying Employee
          Share Ownership Trust which may be established by the Company;

    - 1 -

    

Back to Contents

  	 	and expressions not otherwise
          defined in this Scheme have the same meanings as they have in Schedule
          9.

    	 (2) 	 Any reference in this Scheme
          to any enactment includes a reference to that enactment as from time
          to time modified, extended or re-enacted. 
	 (3) 	 Expressions in italics are for guidance
          only and do not form part of this Scheme. 

 

	2.	ELIGIBILITY
	 (1) 	 Subject to sub-rule 2(5) (material
      interest in a close company) an individual is eligible to be granted
      an option on the Grant Date if (and only if): 
		 (a) 	 he is on the Grant Date an employee
      or director of a company which is a Participating Company; and 
		 (b) 	 he either satisfies the conditions
      specified in sub-rule 2(2) or is nominated by the Board for this purpose.
    
	 (2) 	 The conditions referred to in
      sub-rule 2(1)(b) are that the individual: 
		 (a) 	 shall at all times during the
      qualifying period have been an employee (but not a director) or a full-time
      director of the Company or a company which was for the time being a Subsidiary;
      and 
		 (b) 	 was at the relevant time chargeable
      to tax in respect of his employment or office under Case I of Schedule
      E. (resident and ordinarily by resident in the UK) 
	 (3) 	 For the purposes of sub-rule
      2(2): 
		 (a) 	 the relevant time is such
      time (if any) during the period of 5 years ending with the Grant Date 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
      that 5-year period);  
		 (b) 	 the qualifying period
      is such period (if any) ending at the relevant time and falling within the
      5-year period mentioned in sub-rule 2(3)(a) as the Board may determine;
    
		 (c) 	 an individual shall be treated
      as a full-time director of a company if he is obliged to devote to
      the performance of the duties of his office or employment with the company
      not less than 25 hours a week; 
		 (d) 	 Chapter I of Part XIV of the
      Employment Rights Act 1996 shall have effect, with any necessary changes,
      for ascertaining the length of the period during which an individual shall
      have been an employee or a full-time director and whether he shall have
      been an employee or a full-time director at all times during that period.
    
	 (4) 	 Any determination of the Board
      under sub-rule 2(3)(a) or 2(3)(b) shall have effect in relation to every
      individual for the purpose of ascertaining whether he is eligible to be
      granted an option on the Grant Date. 

	   

- 2 -

    

Back to Contents

	 (5) 	 An individual is not eligible to be granted
      an option at any time if he is at that time ineligible to participate in
      this Scheme by virtue of paragraph 8 of Schedule 9 (material interest
      in close company). 

	3.	GRANT OF OPTIONS
	 (1) 	 Subject to sub-rule 3(4) (individual
      limits) and to Rule 4 (limit, on use of new issue shares) the Board
      may grant an option to acquire shares in the Company which satisfy the requirements
      of paragraphs 10 to 14 of Schedule 9 (fully paid up, unrestricted, ordinary
      share capital), upon the terms set out in this Scheme, to any individual
      who: 
		 (a) 	 is eligible to be granted an
      option in accordance with Rule 2 and 
		 (b) 	 has applied for an option and proposed to
      make a Savings Contract in connection with it (with a Savings Body approved
      by the Board) in the form and manner prescribed by the Board, 

	 	and for this purpose an option
      to acquire includes an option to purchase and an option to subscribe.

	 	Types of option

	 (2) 	 The type of option to be granted
      to an individual, that is to say a 3-Year Option, a 5-Year Option, or a
      7-Year Option, shall be determined by the Board or, if the Board so permits,
      by the individual; and for this purpose: 
		 (a) 	 a 3-Year Option is an
      option in connection with which a three year Savings Contract is to be made
      and in respect of which, subject to sub-rule 4(4), the repayment is to be
      taken as including the bonus; and 
		 (b) 	 a 5-Year Option is an option in connection
      with which a five year Savings Contract is to be made and in respect of
      which, subject to sub-rule 4(4), the repayment is to be taken as including
      a bonus other than the maximum bonus; and 
		 (c) 	 a 7-Year Option is an option in connection
      with which a five year Savings Contract is to be made and in respect of
      which, subject to sub-rule 4(4), the repayment is to be taken as including
      the maximum bonus. 

	 	Amount of savings

	 (3) 	 The amount of the monthly contribution
      under the Savings Contract to be made in connection with an option granted
      to an individual shall, subject to sub-rule 4(4), be the amount which the
      individual shall have specified in his application for the option that he
      is willing to pay, PROVIDED THAT, subject to sub-rule 3(4), if the amount
      so specified is less than the minimum permitted amount or more than
      the maximum permitted amount, the amount so specified shall be taken
      to be the minimum or maximum permitted amount as appropriate. For this purpose
      the minimum permitted amount shall be £5 (or such other amount
      as may be specified for the purpose of paragraph 24(2)(b) of Schedule 9)
      and the maximum permitted amount shall be the maximum amount which:
    
		 (a) 	 when aggregated with the amount
      of his monthly contributions under any other Savings Contract linked to
      this Scheme or to any other savings-related share

- 3 -

Back to Contents

		  	 option scheme approved under
      Schedule 9, does not exceed £250 or such other maximum amount as may
      for the time being be permitted by paragraph 24(2)(a) of Schedule 9;
    
		 (b) 	 does not exceed the maximum amount for the
      time being permitted under the terms of the Savings Contract; and
    
		 (c) 	 when aggregated with the amount of his monthly
      contributions under any other Savings Contract linked to this Scheme, does
      not exceed any maximum amount determined by the Board. 
	 (4) 	 In the event that, for any individual,
      the minimum permitted amount shall be greater than the maximum
      permitted amount, that individual shall not enter into a Savings Contract
      and shall not be granted an option. 

	 	Number of shares subject
      to each option

	 (5) 	 The number of shares in respect
      of which an option may be granted to any individual shall be the maximum
      number which can be paid for, at the price determined under sub-rule 3(6)
      with monies equal to the amount of the repayment due on the Bonus Date under
      the Savings Contract to be made in connection with the option. 

	 	Exercise Price

	 (6) 	 The price at which shares may
      be acquired by the exercise of options of a particular type granted on any
      day shall be determined by the Board and stated on that day, provided that:
    
		 (a) 	 if shares of the same class as
      those shares are quoted in the London Stock Exchange Daily Official List,
      the price shall not be less than 80% of: 
	
 

      		 (i) 	 the average of the middle-market
      quotations of shares of that class (as derived from that List) on the [3]
      dealing days last preceding the date on which invitations to apply for the
      options were given pursuant to sub-rule 3(7) (or, at the Board’s discretion,
      the average of such quotations over up to 5 dealing days last preceding
      the aforesaid date or such quotation on the dealing day last preceding the
      aforesaid date), or 
			 (ii) 	 if the first of those dealing
      days (or the dealing day, as the case may be) does not fall within the period
      of 30 days (or, where sub-rule 4(3) applies, 42 days) ending with the day
      on which the options are granted or falls prior to the date on which the
      Company last announced its annual or half-yearly results, the average of
      the middle-market quotations of shares of that class (as derived from that
      List) on the [3] dealing days last preceding the day on which the options
      are granted or on such other dealing day or days as may be agreed in advance
      with the Inland Revenue; 
		 (b) 	 if sub-rule 3(6)(a) does not
      apply, the price shall not be less than 80% of the market value (within
      the meaning of Part VIII of the Taxation of Chargeable Gains Act 1992) of
      shares of that class, as agreed in advance for the purposes of this Scheme
      with the Shares Valuation Division of the Inland Revenue, on - 

- 4 -

Back to Contents

			 (i) 	 the date on which invitations to apply for
      the options were given pursuant to sub-rule 3(7) or 
			 (ii) 	 if that date does not fall within the period
      of 30 days (or, where sub-rule 4(3) applies, 42 days) ending with the day
      on which the options are granted, on the day on which the options are granted
      or such other day as may be agreed in advance with the Inland Revenue; and
    
		 (c) 	 in the case of an option to acquire
      shares only by subscription, the price shall not be less than the nominal
      value of those shares (unless the Board are authorised to capitalise reserves).
    

	 	Invitations

	 (7) 	 The Board shall ensure that,
      in relation to the grant of options on any day: 
		 (a) 	 every individual who is eligible
      to be granted an option on that day has been given an invitation; 
    
		 (b) 	 the invitation specifies a period of not
      less than 14 days in which an application for an option may be made; and
    
		 (c) 	 subject to sub-rule 3(4), every eligible
      individual who has applied for an option as mentioned in sub-rule 3(1) is
      in fact granted an option on that day. 

	 	Timing of invitations

	 (8) 	 An invitation to apply for an
      option may only be given: 
		 (a) 	 within the period of 6 weeks
      beginning with -  
			 (i) 	 the date on which this Scheme
      is approved by the Inland Revenue under Schedule 9; and thereafter
    
			 (ii) 	 the dealing day next following the date on
      which the Company announces its results for any period; or 

	 	at any other time when the Board
      considers that there are exceptional circumstances; and 

	  	(b)	 within the period of 10 years beginning with
      the date on which this Scheme is approved by the Company’s shareholders.
    

	 	Options non-transferable

	 (9) 	 An option granted to any person:
    
		 (a) 	 shall not, except as provided
      in sub-rule 5(3), be capable of being transferred by him; and  
		 (b) 	 shall lapse immediately if he is adjudged
      bankrupt. 

	4.	LIMITS
	 (1) 	 No options shall be granted in
      any year which would, at the time they are granted, cause the number of
      shares in the Company which may be allocated under this Scheme, or

- 5 -

Back to Contents

	  	  under any other employees’
      share scheme adopted by the Company, in the period of 10 calendar years
      ending with that year under this Scheme to exceed such number as represents
      10 per cent. of the ordinary share capital of the Company in issue at that
      time. Options granted prior to 14 March 2000 (the date on which shares
      in the Company were first treated as the — Stock Exercise) will
      be ignored for this limit. 
	
(2)
	
No options shall be granted to acquire a number of shares which exceeds any number determined by the Board for this purpose.

	 	 	Scaling down applications

    	 (3) 	 If the grant of options on
          any day would but for this sub-rule cause either of the limits to be
          exceeded, the provisions set out in sub-rule 4(4) or such other provisions
          as the Board may determine and agree with the Inland Revenue before
          the grant of any such options is made shall be successively applied
          (in the order in which they are set out or such other order as the Board
          may determine, provided that a determination by the Board under sub-rule
          4(4)(e) may only be made after a determination by the Board under sub-rules
          4(4)(a) and 4(4)(b)) so far as is necessary to ensure that the relevant
          limit is not exceeded. 
	 (4) 	 Those provisions are:
        
		 (a) 	 unless sub-rule 4(4)(b) applies,
          the amount of the monthly contribution determined under sub-rule 3(3)
          shall be taken as successively reduced by 0.5 per cent. thereof, 1 per
          cent. thereof, 1.5 per cent. thereof and so on and then rounded up to
          the nearest pound, but shall not be reduced to less than the minimum
          amount permitted under the terms of the Savings Contract;  
		 (b) 	 if the Board shall have decided that
          this paragraph is to apply, for the purpose of determining the amount
          of the monthly contribution, the maximum permitted amount referred to
          in sub-rule 3(3) shall be taken as successively reduced by £1,
          £2, £3 and so on, but shall not be reduced to less than
          the minimum amount permitted under the terms of the Savings Contract;
        
		 (c) 	 the repayment under the Savings Contract
          shall be taken as not including a bonus; 
		 (d) 	 any option which would otherwise be a
          7-Year Option shall be a 5-Year Option; 
		 (e) 	 any option which would otherwise be a
          5-Year Option shall be a 3-Year Option; 
		 (f) 	 the Board shall not grant any options
          on the day in question. 
	 (5) 	 References in this Rule 4
          to “allocation” shall mean, in relation to any share option
          scheme, placing unissued shares under option and, in relation to other
          types of employees’ share scheme, the allotment and issue of shares
          and references to “allocated” shall be construed accordingly,
          provided that to the extent that the Board considers that the exercise
          of options can be satisfied by the transfer of shares already in issue
          those options shall not be treated as having being granted over new
          issue shares. 

    
	5.	EXERCISE OF OPTIONS 
	 (1) 	 The exercise of any option shall
      be effected in the form and manner prescribed by the Board, provided that
      the monies paid for shares on such exercise shall not exceed the amount
      of the repayment made and any interest paid under the Savings Contract made
      in connection with the option.  

- 6 -

Back to Contents

	 	Normal earliest date for
      exercise

	 (2) 	 Subject to sub-rules 5(3) (death),
      5(4) (termination of employment) and 5(6) ( retirement following
      age [60]) and to Rule 6 (takeover etc), an option shall
      not be capable of being exercised before the Bonus Date. 

	 	Death

	 (3) 	 Subject to sub-rule 5(8) (termination
      of saving when option not exercisable): 
		 (a) 	 if any Participant dies before
      the Bonus Date, any option granted to him may (and must, if at all) be exercised
      by his personal representatives within 12 months after the date of his death,
      and  

		 (b) 	 if he dies on or within 6 months
      after the Bonus Date, any option granted to him may (and must, if at all)
      be exercised by his personal representatives within 12 months after the
      Bonus Date, 

	 	provided in either case that
      his death occurs at a time when he either holds the office or employment
      by virtue of which he is eligible to participate in this Scheme or is entitled
      to exercise the option by virtue of sub-rule 5(4).

	 	Cessation of employment

	 (4) 	 Subject to sub-rule 5(7) (normal
      last date for exercise), if any Participant ceases to hold the office
      or employment by virtue of which he is eligible to participate in this Scheme
      (otherwise than by reason of his death), the following provisions apply
      in relation to any option granted to him: 
		 (a) 	 if he so ceases by reason of
      injury, disability, redundancy within the meaning of the Employment Rights
      Act 1996, or retirement on reaching the age of [60] or any other age at
      which he is bound to retire in accordance with the terms of his contract
      of employment, the option may (and subject to sub-rule 5(3) (death)
      must, if at all) be exercised within 6 months of his so ceasing;
    
		 (b) 	 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 a business or part of a business which is transferred to a
      person who is neither an Associated Company of the Company nor a company
      of which the Company has control, the option may (and subject to sub-rule
      5(3) (death) must, if at all) be exercised within 6 months of his
      so ceasing; 
		 (c) 	 if he so ceases for any other reason within
      3 years of the grant of the option, the option may not be exercised at all;
    
		 (d) 	 if he so ceases for any other reason (other
      than dismissal for misconduct, in which event the option may not be exercised
      at all) more than 3 years after the date of grant of the option the option
      may (and subject to sub-rule 5(3) (death) must, if at all) be exercised
      within 6 months of his so ceasing. 

- 7 -

Back to Contents

	 	Employment by a non-participating
      associated company

	 (5) 	 Subject to sub-rule 5(7) (normal
      last date for exercise)  and sub-rule 5(8) (termination of saving
      when option is not exercisable) if, at the Bonus Date, a Participant
      holds an office or employment with a company which is not a Participating
      Company but which is an Associated Company or a company of which the Company
      has control, any option granted to him may (and subject to sub-rule 5(3)
      (death) must, if at all) be exercised within 6 months of the Bonus Date.
    

	 	Reaching age 60 whilst
      in employment

	 (6) 	 Subject to sub-rule 5(7) (normal
      last date for exercise) and sub-rule 5(8) (termination of saving
      when option is not exercisable), where any Participant continues to
      hold the office or employment by virtue of which he is eligible to participate
      in this Scheme after the date on which he reaches the age of [60], he may
      exercise any option within 6 months of that date. 

	 	Normal last date for exercise

	 (7) 	 Subject to sub-rule 5(3) (death),
      an option shall not be capable of being exercised later than 6 months
      after the Bonus Date. 

	 	Termination of saving when
      option is not exercisable

	 (8) 	 Where, before an option has become
      capable of being exercised, the Participant gives notice that he intends
      to stop paying monthly contributions under the Savings Contract made in
      connection with the option, or is deemed under its terms to have given such
      notice, or makes an application for repayment of the monthly contributions
      paid under it, the option may not be exercised at all. 

	 	Continuing employment

	 (9) 	 A Participant shall not be treated
      for the purposes of sub-rules 5(3) and 5(4) as ceasing to hold the office
      or employment by virtue of which he is eligible to participate in this Scheme
      until he ceases to hold an office or employment in the Company or any Associated
      Company or company of which the Company has control.  
	 (10) 	 A Participant shall not be eligible
      to exercise an option at any time: 
		 (a) 	 unless, subject to sub-rules
      5(4) (cessation of employment) and 5(5) (employment by a non-participating
      associated company) he is at that time a director or employee of a Participating
      Company; 
		 (b) 	 if he is not at that time eligible to participate
      in this Scheme by virtue of paragraph 8 of Schedule 9 (material interest
      in close company).  

	 	Options only exercisable
      once

	 (11) 	 An option shall not be capable
      of being exercised more than once. 

	 	Delivery of shares

	 (12) 	 Within 30 days after an option
      has been exercised by any person, the Board shall allot to him (or a nominee
      for him) or, as appropriate, procure the transfer to him (or a nominee

- 8 -

Back to Contents

	  	for him) of the number of shares
          in respect of which the option has been exercised, provided that the
          Board considers that the issue or transfer thereof would be lawful in
          all relevant jurisdictions. 

	 	Rights attaching to newly
      issued shares

	 (13) 	 All shares allotted under this
      Scheme shall rank equally in all respects with shares of the same class
      then in issue except for any rights attaching to such shares by reference
      to a record date before the date of the allotment.  

	 	Shares ceasing to satisfy
      statutory requirements

	 (14) 	 If the shares subject to an option
      cease to satisfy the requirements of paragraphs 10 to 14 of Schedule 9 at
      any time after the Grant Date then: 
		 (a) 	 the Board shall as soon as practicable
      notify the Inland Revenue of this; 
		 (b) 	 the Company will not be required to allot
      or procure the transfer of shares which satisfy those requirements upon
      the exercise of the option; and 
		 (c) 	 for the avoidance of doubt, all the options
      shall continue to exist (although if the Inland Revenue withdraw their approval
      of the Scheme under Schedule 9, it shall continue to exist as an unapproved
      option). 

    
	6.	TAKEOVER, RECONSTRUCTION AND WINDING UP
	 (1) 	 If any person obtains control
          of the Company (within the meaning of section 840 of the Taxes Act 1988)
          as a result of making a general offer to acquire shares in the Company,
          or having obtained control makes such an offer, the Board shall within
          7 days of becoming aware thereof notify every Participant thereof and,
          subject to sub-rules 5(3) (death), 5(4) (cessation of employment),
          5(7) (normal last date for exercise) and 5(8) (termination
          of saving when option is not exercisable) any option may be exercised
          within one month (or such longer period as the Board may permit) of
          the notification, but not later than 6 months after that person has
          obtained control. 
	 (2) 	 For the purposes of sub-rule 6(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.
    
	 (3) 	 If any person becomes bound or entitled to
      acquire shares in the Company under sections 428 to 430F of the Companies
      Act 1985, or if under section 425 of that Act the Court sanctions a compromise
      or arrangement proposed for the purposes of or in connection with a scheme
      for the reconstruction of the Company or its amalgamation with any other
      company or companies, or if the Company passes a resolution for voluntary
      winding up, the Board shall forthwith notify every Participant thereof and,
      subject to sub-rules 5(3) (death), 5(4) (cessation of employment),
      5(7) (date for exercise) and 5(8) (termination of saving when
      option is not exercisable)any option may be exercised within one month
      of the notification, but to the extent that it is not exercised within that
      period shall (notwithstanding any other provision of this Scheme) lapse
      on the expiration of that period. 

	 	Rollover of options

	 (4) 	 If any company (“the acquiring
      company”): 

- 9 -

Back to Contents

		 (a) 	 obtains control of the Company
      as a result of making-  
			 (i) 	 a general offer to acquire the
      whole of the issued ordinary share capital of the Company which is made
      on a condition such that if it is satisfied the acquiring company will have
      control of the Company, or 
			 (ii) 	 a general offer to acquire all the shares
      in the Company which are of the same class as the shares which may be acquired
      by the exercise of options granted under this Scheme, or 
		 (b) 	 obtains control of the Company
      in pursuance of a compromise or arrangement sanctioned by the court under
      section 425 of the Companies Act 1985 or Article 418 of the Companies (Northern
      Ireland) Order 1986, or 
		 (c) 	 becomes bound or entitled to
      acquire shares in the Company under sections 428 to 430F of that Act or
      Articles 421 to 423 of that Order, 

	 	any Participant may at any time within the appropriate period (which expression shall be construed in accordance with paragraph 15(2) of Schedule 9), by agreement with the acquiring company, release 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 some other company falling within paragraph 10(b) or (c) of Schedule 9).

	 (5) 	 The new option shall not be regarded
      for the purposes of sub-rule 6(4) as equivalent to the old option unless
      the conditions set out in paragraph 15(3) of Schedule 9 are satisfied, but
      so that the provisions of this Scheme shall for this purpose be construed
      as if: 
		
      (a)

      	 the new option were an option
      granted under this Scheme at the same time as the old option; 
		 (b) 	 except for the purposes of the
      definitions of “Participating Company”, “Associated Company”
      and “Subsidiary” in sub-rule 1(1) and sub-rules 5(4)(b), 5(5)
      and 5(9) the expression “the Company” were defined as “a
      company whose shares may be acquired by the exercise of options granted
      under this Scheme”; 
		 (c) 	 the Savings Contract made in
      connection with the old option had been made in connection with the new
      option; 
		 (d) 	 the Bonus Date in relation to
      the new option were the same as that in relation to the old option; and
    
		 (e) 	 Rule 8(2) were omitted.
    
	 (6) 	 This sub-rule shall apply if:
    
		 (a) 	 an offer (as referred to in Rule
      6(1)) is made or a compromise or arrangement (as referred to in Rule 6(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;
    

- 10 -

Back to Contents

		 (b) 	 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 
		 (c) 	 before options become exercisable under Rule
      6(1) or 6(3), a notice is given to Participants of an offer to release them
      in consideration of the grant of new options under Rule 6(4). 

	 	In this case, the original options shall not become exerciseable under Rule 6(1) or 6(3) and, if the offer made under Rule 6(4) is not accepted by the Participant in respect of any option during the appropriate period (as referred to in rule 6(4)), that option shall lapse on the expiry of that period.

    
	
7.
	
VARIATION OF CAPITAL

	
(1)
	
Subject to sub-rule 7(3), in the event of any variation of the share capital of the Company, the Board may make such adjustments as it considers appropriate under sub-rule 7(2).

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

		
(a)
	
the number of shares in respect of which any option may be exercised;

		
(b)
	
the price at which shares may be acquired by the exercise of any option;

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

	
(3)
	
At a time when this Scheme is approved by the Inland Revenue under Schedule 9, no adjustment under sub-rule 7(2) shall be made without the prior approval of the Inland Revenue.

	
(4)
	
An adjustment under sub-rule 7(2) may have the effect of reducing or further 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 shares may be subscribed for and to apply that sum in paying up that amount on the shares; and so that on the exercise of any option in respect of which such a reduction shall have been made the Board shall capitalise that sum (if any) and apply it in paying up that amount.

    
	8.	ALTERATIONS
	 (1) 	 Subject to sub-rule 8(2), the
      Board may at any time alter this Scheme, provided that no alteration shall
      be made at a time when this Scheme is approved by the Inland Revenue under
      Schedule 9 without the prior approval of the Inland Revenue. 
	 (2) 	 Subject to sub-rule 8(3), no alteration to
      the advantage of the persons to whom options may be granted shall be made
      under sub-rule 8(1) to any of the provisions concerning eligibility; the
      individual limit on participation; the overall limits on the issue of shares;
      the terms of options; the rights attaching to shares acquired on the exercise
      of options; the adjustment of options in the event of a variation of capital;
      or of this Rule, without

- 11 -

Back to Contents

	 	  	  the prior approval by ordinary
          resolution of the members of the Company in general meeting.
        
	 (3) 	 Sub-rule 8(2) shall not apply to any
          minor alteration to benefit the administration of this Scheme, 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. 

    
	9.	MISCELLANEOUS
	 	Employment rights

	
(1)
	
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 this Scheme or any right which he may have to participate in it, and an individual who participates in it 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 as a result of such termination.

	 	Interpretation

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

	 	Communications

	
(3)
	
Any notice or other communication under or in connection with this Scheme may be given by personal delivery or by sending it by post, in the case of a company to its registered office, and in the case of an individual to his last known address, or, where he is a director or employee of the Company or a 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.

	 	Governing law

	
(4)
	
This Scheme and all options granted under it shall be governed by and construed in accordance with the law of England and Wales.

- 12 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]