Document:

EXHIBIT 4.1

                                  RULES OF THE
                  BOC GROUP EXECUTIVE SHARE OPTION SCHEME 2003

                    Adopted by the Company on 17 January 2003

 The UK Approved Schedule to this Plan has been approved by the Inland Revenue
under the provisions of Schedule 9 to the Income and Corporation Taxes Act 1988
                             under reference X22459

                                Deloitte & Touche

                                   180 Strand

                                     London

                                    WC2R 1BL

                               Tel: 020 7438 3000

<PAGE>

                             RULES OF THE BOC GROUP

                       EXECUTIVE SHARE OPTION SCHEME 2003

1     DEFINITIONS AND INTERPRETATION

1.1   In this Plan, the following words and expressions shall have the meanings
      set out below:

      American Depository Shares    a receipt or certificate representing an
                                    interest in Shares in the Company and the
                                    terms "ADS" shall be construed accordingly;

      Appropriate Period            the meaning given by paragraph 15(2) of
                                    Schedule 9 to the Taxes Act;

      Board                         the board of directors of the Company from
                                    time to time or a duly authorised committee
                                    of it;

      Company                       The BOC Group plc (registered no. 22096);

      Control                       the meaning given by section 840 of the
                                    Taxes Act;

      Daily Official List           the register of listed securities and the
                                    prices of transactions published by the
                                    London Stock Exchange;

      Date of Grant                 the date on which the Grantor grants an
                                    Option under Rule 2.1;

      Dealing Day                   any day on which the London Stock Exchange
                                    is open for the transaction of business;

      Discretionary Share Plan      an Employees' Share Scheme in which
                                    participation is solely at the discretion of
                                    the Board;

      Eligible Employee             any person who at the Date of Grant is an
                                    employee or an executive director of a
                                    Participating Company;

      Employees' Share Scheme       the meaning given by section 743 of the
                                    Companies Act 1985;

      Exercise Condition            a condition or conditions imposed on the
                                    exercise of an Option pursuant to Rule 2.2;

      Grantor                       the Board (acting on behalf of the Company)
                                    or the Trustees acting on the recommendation
                                    or with the consent of the Board (as the
                                    case may be);

                                       1
 <PAGE>

      Grant Period                  the period of 42 days commencing on any of
                                    the following:

                                    (A)     the date on which the Plan is
                                            adopted by the Company;

                                    (B)     the day after the Company makes an
                                            announcement of its results for any
                                            period;

                                    (C)     any day on which changes to the
                                            legislation affecting share option
                                            plans are proposed or made;

                                    (D)     the date of commencement of an
                                            Eligible Employee's employment with
                                            a Participating Company, but only in
                                            respect of that Eligible Employee;
                                            or

                                    (E)     any day on which the Board resolves
                                            that exceptional circumstances exist
                                            which justify the grant of Options

                                    provided that if the Grantor cannot grant
                                    Options due to primary or secondary
                                    legislation, regulation or government
                                    directive or due to any code adopted by the
                                    Company (including by reason of its share
                                    capital being listed on the London Stock
                                    Exchange) the relevant Grant Period shall be
                                    42 days commencing on the day after the
                                    restriction is lifted;

      Group Member                  (A)     a Participating Company; and

                                    (B)     the Company's holding company
                                            (within the meaning of section 736
                                            of the Companies Act 1985) or a
                                            Subsidiary of the Company or the
                                            Company's holding company;

      London Stock Exchange         the stock exchange operated by London Stock
                                    Exchange plc or any successor operating the
                                    same;

      Market Value                  (i)     in relation to a Share on any day:

                                    (A)     if the Shares are then fully quoted
                                            on the London Stock Exchange, its
                                            closing middle market quotation (as
                                            derived from the Daily Official
                                            List) for the immediately preceding
                                            Dealing Day;

                                    (B)     otherwise, its market value,
                                            determined in accordance with Part
                                            VIII of the Taxation of Chargeable
                                            Gains Act 1992;

                                    (ii)    in relation to an ADS on any day:

                                            means an amount equal to half-way
                                            between the high and low sales
                                            prices of ADSs recorded on the New
                                            York Stock Exchange on the
                                            applicable valuation date.

      Market Value Option Plan      any share option plan adopted by the Company
                                    under which options may only be granted with
                                    an exercise price set by

                                       2
 <PAGE>

                                    reference to the Market Value of a share at
                                    the date of grant;

      Option                        subject to Rule 2.10 a right to acquire
                                    Shares under the Plan which is either
                                    subsisting or is proposed to be granted;

      Option Period                 a period commencing on the Date of Grant of
                                    an Option and ending on the expiry of the
                                    period specified under Rule 5.1.1;

      Option Price                  subject to Rule 2.10, the price per Share,
                                    as determined by the Grantor at the Date of
                                    Grant, at which an Eligible Employee may
                                    acquire Shares upon the exercise of an
                                    Option being not less than the higher of:

                                    (A)     the Market Value of a Share on the
                                            Date of Grant (or the average Market
                                            Value of a Share on the Date of
                                            Grant and the two immediately
                                            preceding Dealing Days or the Market
                                            Value at such other time or times as
                                            may be determined by the Grantor
                                            provided that such times or period
                                            shall be within a Grant Period);
                                            and;

                                    (B)     if the Shares are to be subscribed,
                                            the nominal value of a Share;

                                    but subject to any adjustment pursuant to
                                    Rule 11;

      Overseas Plan                 the US Plan set out in Schedule 2 to this
                                    Plan as from time to time amended;

      Participant                   any person to whom an Option has been
                                    granted, or (where the context so admits)
                                    his personal representatives;

      Participating Company         (A)     the Company; and

                                    (B)     any other company which is under the
                                            Control of the Company and is a
                                            Subsidiary of the Company except one
                                            which the Board has designated shall
                                            not be a Participating Company; and

                                    (C)     if so designated by the Grantor, any
                                            company owned by the Company jointly
                                            with another person together with
                                            any Subsidiary of such company;

      Plan                          The BOC Group Executive Share Option Scheme
                                    2003 as from time to time amended in
                                    accordance with the Rules;

      Rules                         the rules of the Plan as amended from time
                                    to time;

      Share                         a fully paid ordinary share in the capital
                                    of the Company;

      Subsidiary                    the meaning given by section 736 of the
                                    Companies Act 1985;

      Taxes Act                     the Income and Corporation Taxes Act 1988;

                                       3
 <PAGE>

      Trustees                      the trustee or trustees for the time being
                                    of any employee benefit trust established
                                    for the benefit of all or substantially all
                                    of the Eligible Employees; and

      UK Approved Schedule          that part of the Plan, comprising the UK
                                    Approved Schedule attached at Schedule 1 to
                                    the Plan, which has been approved by the UK
                                    Inland Revenue in accordance with Schedule 9
                                    to the Taxes Act, in its present form or as
                                    from time to time amended in accordance with
                                    the provisions hereof.

1.2   Where appropriate, references to an Act of Parliament shall include
      reference to any substantially equivalent foreign legislation and all
      references to any statutory provisions are to those provisions as amended,
      extended or re-enacted from time to time and shall include any regulations
      or other subordinate legislation made under them.

1.3   The Interpretation Act 1978 shall apply to these Rules on the same basis
      as if they were an Act of Parliament.

1.4   The headings in the Rules are for the sake of convenience only and should
      be ignored when construing the Rules.

2     GRANT OF OPTIONS

2.1   During a Grant Period, the Grantor may grant to any Eligible Employee an
      Option over such number of Shares and at such Option Price as it may
      determine.

2.2   The Grantor will make the exercise of an Option conditional on satisfying
      one or more conditions. Such conditions must be objective and specified at
      the Date of Grant and must not be waived or changed by the Grantor unless
      where events happen which cause the Grantor reasonably to consider that:

      2.2.1       a changed Exercise Condition would be a fairer measure of
                  performance, and would not be materially more or less
                  difficult to satisfy than the condition as it existed or when
                  first imposed; and

      2.2.2       the changed Exercise Condition is similar in nature.

2.3   The grant of an Option or the delivery of any Shares following its
      exercise shall be subject to obtaining any approval or consent required
      under any applicable laws, regulations of governmental authority and the
      requirements of the United Kingdom Listing Authority, and any other
      securities exchange on which the Shares are traded.

2.4   No Option may be granted, exercised, released or surrendered at a time
      when such grant, exercise, release or surrender would not be in accordance
      with the "Model Code on Directors' Dealings in Securities" issued by the
      United Kingdom Listing Authority, as amended from time to time, or any
      other code adopted by the Company.

2.5   The Grantor shall execute a deed as evidence of the grant of an Option,
      which deed may be in respect of an individual Option or any number of
      Options granted at the same time. As soon as practicable after the Date of
      Grant, the Grantor shall issue to each Participant a certificate in
      respect of the Option in such form as the Grantor may from time to time
      prescribe.

2.6   Participants are not required to pay for the grant of an Option.

2.7   Neither an Option nor any rights in respect of it may be transferred,
      assigned or otherwise disposed of by a Participant to any other person
      without the Grantor's prior consent, except

                                       4
<PAGE>

      that, on the death of a Participant, his Option may be transmitted to his
      personal representatives.

2.8   A Participant may surrender all or part of his Option by notice in writing
      to the Secretary of the Company within 30 days of the Date of Grant. If
      this happens, the Option will, to the extent surrendered, be deemed for
      all purposes never to have been granted, and no further Options shall be
      granted to the Participant within 60 days of the date of surrender. No
      consideration is payable for the surrender.

2.9   If the Grantor purports to grant an Option which is inconsistent with the
      limits in Rule 3 or 4, the Option will be limited and will take effect
      from the Date of Grant on a basis consistent with the Rules, and the
      Grantor may call in the option certificate for endorsement, replacement or
      cancellation.

2.10  The Grantor may grant an Option to acquire cash or other assets (including
      Shares) which:

      2.10.1      on exercise, subject to satisfying any Exercise Condition
                  where required by the Rules, delivers a value to the
                  Participant related to the increase in the Market Value of a
                  Share from the Date of Grant to the date of effective
                  exercise; and

      2.10.2      is otherwise subject to the Rules, which shall be interpreted
                  in such manner as the Grantor reasonably determines is
                  necessary to give effect to this Rule 2.10.

2.11  All Options granted to Participants in the U.S. shall be evidenced by an
      instrument(s) in such form or forms as may from time to time be approved
      by the Company which, shall set out the manner in which a Participant may
      exercise his Option and the form of payment for the Shares or ADSs
      issuable or transferable under it.

2.12  The Company may arrange for any Option to constitute a right to ADSs
      rather than Shares, in which case the references to "Shares" in the Plan
      shall be deemed to be references to "ADSs" as the context may require.

2.13  In its discretion and upon such terms and conditions as it may implement
      from time to time, the Company may arrange for (i) any Option over Shares
      to be satisfied in the form of ADSs, and for any Option over ADSs to be
      satisfied in the form of Shares and (ii) for the exercise price of any
      Option expressed in Sterling to be paid in U.S. dollars, and for the
      exercise price of any Option expressed in U.S. dollars to be paid in
      Sterling using such rate of exchange as the Grantor may reasonably
      specify.

3    INDIVIDUAL LIMITS

3.1   Subject to Rule 3.2 no Option shall be granted to an Eligible Employee
      which would, at the Date of Grant, result in the market value (measured at
      the relevant Date of Grant) of the Shares over which he has been granted
      Options under the Plan and options under any other Market Value Option
      Plan in respect of any financial year of the Company exceeding 200% of his
      annual rate of basic salary.

3.2   In calculating the limit in Rule 3.1, no account shall be taken of any
      Shares which have been put under Option to ensure that a Participant who
      agrees to satisfy any liability to employer's national insurance
      contributions (or the overseas equivalent to the extent this is lawful) is
      not financially disadvantaged.

4     PLAN LIMITS

4.1   In any ten year period, the number of Shares which may be allocated under
      the Plan and under any other Employees' Share Scheme adopted by the
      Company shall not exceed such number

                                       5
<PAGE>

      as represents ten per cent of the issued ordinary share capital of the
      Company from time to time.

4.2   In any twelve month period, the number of Shares allocated under the Plan
      and under any other Discretionary Share Plan adopted by the Company shall
      not exceed such number as represents 0.5 per cent of the issued ordinary
      share capital of the Company from time to time unless the number of Shares
      to be allocated under the Plan and under any other Discretionary Share
      Plan adopted by the Company, when aggregated with the number of Shares in
      any ten year period already allocated under the Plan and under any other
      Discretionary Share Plan adopted by the Company, represents less than five
      per cent of the issued ordinary share capital of the Company from time to
      time,

4.3   In determining the above limits:

      4.3.1       any Shares allocated to the Trustees under the Plan or any
                  other Employees' Share Scheme adopted by the Company shall be
                  included; and

      4.3.2       no account shall be taken of any Shares where the right to
                  acquire such Shares was released or lapsed without being
                  exercised, including pursuant to Rule 2.8 above.

4.4   In this Rule "allocate" shall mean, in the case of any share option plan,
      the placing of unissued shares under option and, in relation to other
      types of Employees' Share Schemes, the commitment to issue shares or the
      issue and allotment of shares (whichever is the earlier).

5     EXERCISE AND LAPSE OF OPTIONS - GENERAL RULES

5.1   An Option can only be exercised

      5.1.1       except where exercise is allowed as described in Rules 6 or 7,
                  on or after the third anniversary of the Date of Grant or such
                  other date determined by the Grantor at the Date of Grant;

      5.1.2       except where exercise is allowed as described in Rule 6 or 7,
                  by a Participant while he is an officer or employee of a Group
                  Member;

      5.1.3       except where otherwise provided in Rule 6 and 7, if the
                  Exercise Condition (if any) is satisfied or waived.

5.2   An Option shall lapse on the earliest of:

      5.2.1       the tenth anniversary of the Date of Grant (or such other
                  period as determined by the Grantor at the Date of Grant);

      5.2.2       the expiry of all applicable periods specified in Rule 6;

      5.2.3       the expiry of any of the applicable periods specified in Rule
                  7 except to the extent an Option is released in consideration
                  of the grant of a New Option (during one of the periods
                  specified in Rule 7) pursuant to Rule 8.2;

      5.2.4       where Rule 8.1 applies, the expiry of the Appropriate Period
                  except where an Option is released in consideration of a New
                  Option pursuant to Rule 8.2;

      5.2.5       the Participant ceasing to hold an office or employment or
                  giving or being given notice to terminate employment with a
                  Group Member in any circumstances except where it arises:

                  5.2.5.1     on any of the grounds specified in Rule 6; or

                                       6
<PAGE>

                  5.2.5.2     during any of the periods specified in Rule 7
                              other than for an act or omission of the
                              Participant entitling his employer to terminate
                              without notice his office or employment or where
                              the Participant gives notice to terminate;

      5.2.6       subject to Rule 7.5, the passing of an effective resolution or
                  the making of an order by the Court for the winding up of the
                  Company;

      5.2.7       the Participant being deprived of the legal or beneficial
                  ownership of the Option by operation of law or being declared
                  bankrupt, unless the Grantor determines otherwise; and

      5.2.8       the Participant purporting to transfer or dispose of the
                  Option or any rights in respect of it other than as permitted
                  under Rule 2.7.

5.3   For the purposes of this Rule 5 and Rule 6 below, a Participant shall not
      be treated as ceasing to hold office or employment with a Group Member
      until he has ceased to hold office or employment with all Group Members.

5.4   For the purposes of the Plan, a woman on maternity leave will not cease to
      hold an office or employment until the earlier of the date on which she
      notifies her employer of her intention not to return or the date on which
      she ceases to have statutory or contractual rights to return to work.

6     EXERCISE OF OPTIONS - EXCEPTIONS TO THE GENERAL RULES WHEN
      LEAVING/CHANGING EMPLOYMENT

6.1   If a Participant dies, even if any Exercise Condition has not been
      satisfied, a proportion of his Option can be exercised for a period of
      twelve months from the date of death (which proportion will reflect the
      number of whole months of the Option Period which have elapsed at the date
      of death) unless and to the extent the Grantor, acting fairly and
      reasonably, determines otherwise within 30 days from the date of death.
      The proportion of the Option that can be exercised shall be calculated as
      soon as practicable and notified to the Participant's personal
      representatives.

6.2   If a Participant retires from a Group Member, he may, subject to
      satisfying any Exercise Condition, exercise a proportion of his Option
      within six months of the expiry of the Option Period (which proportion
      will reflect the number of months of the Option Period which have elapsed
      at the date of retirement) unless and to the extent the Grantor, acting
      fairly and reasonably, determines otherwise.

6.3   If a Participant ceases to hold office or employment with a Group Member
      by reason of injury, ill-health or disability (evidenced to the
      satisfaction of the Board), he may exercise a proportion of his Option
      within twelve months of the date of cessation, even if any Exercise
      Condition has not been satisfied (which proportion will reflect the number
      of whole months of the Option Period which have elapsed at the date of
      cessation) unless and to the extent the Grantor, acting fairly and
      reasonably, determines otherwise within 30 days of the date of cessation.

6.4   If a Participant ceases to hold office or employment with a Group Member
      by reason either of job elimination or a reduction in workforce directly
      affecting him (as determined in the opinion of the Board), he may exercise
      a proportion of his Option within three months of the date of cessation,
      even if any Exercise Condition has not been satisfied (which proportion
      will reflect the number of whole months of the Option Period which have
      elapsed at the date of cessation) unless and to the extent the Grantor,
      acting fairly and reasonably, determines otherwise within 30 days of the
      date of cessation.

                                       7
<PAGE>

6.5   If a Participant ceases to hold office or employment with a Group Member
      by reason of the company in the Group which employees him ceasing to be a
      Group Member or because of the transfer or sale of the undertaking (or
      part of the undertaking) in which he is employed to a person who is not a
      Group Member, he may exercise a proportion of his Option within three
      months of the date of cessation, even if any Exercise Condition has not
      been satisfied (which proportion will reflect the number of whole months
      of the Option Period which have elapsed at the date of cessation) unless
      and to the extent the Grantor, acting fairly and reasonably, determines
      otherwise within 30 days from the date of cessation.

6.6   If a Participant ceases to hold office or employment with a Group Member
      for any reason other than those specified in Rules 6.1, 6.2, 6.3, 6.4 and
      6.4, his Option shall lapse unless and to the extent the Grantor, acting
      fairly and reasonably, determines otherwise within three months from the
      date of cessation.

7     EXERCISE OF OPTIONS - EXCEPTIONS TO THE GENERAL RULES ON TAKEOVER,
      RECONSTRUCTION AND WINDING-UP

7.1   Subject to Rules 7.3, 7.6 and 8.1 below, if any person obtains Control of
      the Company as a result of making, either:

      7.1.1       a general offer to acquire the whole of the issued ordinary
                  share capital of the Company (which is either unconditional or
                  made on a condition such that if it is satisfied the person
                  making the offer will have Control of the Company); or

      7.1.2       a general offer to acquire all the shares in the Company which
                  are of the same class as the Shares,

      (in either case disregarding any shares already owned by it or by any
      company associated with it), Options may be exercised within six months of
      the time when the person making the offer has obtained Control of the
      Company and any condition subject to which the offer is made has been
      satisfied.)

7.2   For the purpose of Rule 7.1 a person shall be deemed to have obtained
      Control of the Company if he and others acting in concert (as defined by
      the City Code on Take-overs and Mergers) with him have together obtained
      Control of it.

7.3   Subject to Rules 7.6 and 8.1, if any person becomes bound or entitled to
      acquire Shares under sections 428 to 430F of the Companies Act 1985,
      Options may be exercised at any time within the period of four weeks
      beginning on the date on which that person first becomes so bound or
      entitled;

7.4   If under section 425 of the Companies Act 1985 it is proposed that the
      Court sanctions a compromise or arrangement for the purposes of or in
      connection with the reconstruction of the Company or its amalgamation with
      any other company or companies the following shall apply:

      7.4.1       the Company shall notify all Participants at the same time as
                  it sends notices to members of the Company calling the meeting
                  to consider such a compromise or arrangement;

      7.4.2       subject to Rules 7.6 and 8.1, Options may then be exercised
                  conditional on such compromise or arrangement being sanctioned
                  by the Court and becoming effective before the earlier of the
                  expiry of six months from the date of such notice and the date
                  on which the compromise or arrangement becomes effective;

                                       8
<PAGE>

      7.4.3       to the extent unexercised, Options shall lapse conditionally
                  on the compromise or arrangement being sanctioned by the Court
                  and becoming effective; and

      7.4.4.      after exercising an Option the Participant shall transfer or
                  otherwise deal with the Shares issued to him so as to place
                  him in the same position (so far as possible) as would have
                  been the case if such Shares had been subject to such
                  compromise or arrangement.

7.5   If notice is duly given of a resolution for the voluntary winding-up of
      the Company, the Company shall notify all Participants. Subject to Rule
      7.6, Options may then be exercised until the resolution is duly passed or
      defeated or the meeting concluded or adjourned sine die provided that the
      exercise of an Option pursuant to this Rule shall be conditional upon the
      resolution being duly passed. If the resolution is duly passed all Options
      shall, to the extent that they have not been exercised, lapse immediately.

7.6   Where Rules 7.1, 7.3, 7.4 or 7.5 apply only a proportion of an Option can
      be exercised (which proportion will reflect the number of months of the
      Option Period which have elapsed at the date of the relevant event) and
      the Option may only be exercised having regard to the extent to which any
      Exercise Condition has been satisfied at the date of the relevant event
      unless and to the extent the Grantor, acting fairly and reasonably,
      determines otherwise.

8     EXCHANGE OF OPTIONS FOLLOWING TAKEOVER ETC.

8.1   Rules 7.1, 7.3 and 7.4 shall not apply where:

      8.1.1       the events are part of a scheme or arrangement whereby another
                  company ("the Acquiror") obtains Control of the Company;

      8.1.2       immediately after the Acquiror obtains Control, the issued
                  ordinary share capital of the Acquiror is owned substantially
                  by the same persons who were equity shareholders of the
                  Company immediately prior to the Acquiror obtaining Control;
                  and

      8.1.3       the Acquiror agrees to grant New Options in accordance with
                  Rule 8.2 in consideration for the release of any Options which
                  have not lapsed.

8.2   If:

      8.2.1       Options become exercisable under Rules 7.1, 7.3 or 7.4 and a
                  company obtains Control of the Company; or

      8.2.2       a company obtains Control in circumstances where Rule 8.1
                  applies; or

      8.2.3       a company obtains Control of any Group Member as a result of a
                  demerger;

      any Participant may during the Appropriate Period, 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 relates to shares in a different company (whether the
      company which has obtained Control of the Company itself or some other
      company). In the case of a demerger, a New Option may be granted in
      respect of an appropriate part of an Old Option.

8.3   Where Rule 8.2 applies, the provisions of the Plan shall for this purpose
      be construed as if:

      8.3.1       the New Option were an option granted under the Plan at the
                  same time as the Old Option;

                                       9
<PAGE>

      8.3.2       except for the purpose of the definition of "Participating
                  Company" in Rule 1.1 and the reference to "the Company" in
                  Rule 13.2, the reference to The BOC Group plc in the
                  definition of "the Company" in Rule 1.1 were a reference to
                  the different company mentioned in Rule 8.2;

      8.3.3       subject to Rule 8.3.4 any Exercise Condition will not apply;
                  and

      8.3.4       where Rule 8.1 applies, the Exercise Condition will apply
                  either in its original form or an appropriately amended form
                  unless the Grantor of the New Option determines that it should
                  be disapplied in whole or in part.

9     MANNER OF EXERCISE

9.1   Subject to Rule 2.3, an Option may be exercised in whole or in part.

9.2   Subject to Rules 9.4 and 10.6 below, an Option may be exercised by
      delivering to the Company Secretary or such other person as the Grantor
      determines (as agent for the Grantor):

      9.2.1       an option certificate covering at least all the Shares over
                  which the Option is then to be exercised;

      9.2.2       a notice of exercise in the prescribed form duly completed and
                  signed by the Participant (or by his duly authorised agent);
                  and

      9.2.3       a remittance for the aggregate Option Price made payable to
                  the Company (as agent for the Grantor, where appropriate) in
                  respect of the Shares over which the Option is exercised

      provided that the Grantor may from time to time prescribe a different
      exercise procedure.

9.3   If an Exercise Condition must be satisfied before an Option may be
      exercised, the delivery of the notice of exercise shall not be treated as
      effecting the exercise of the Option unless and until the Exercise
      Condition has been satisfied. The effective date of exercise shall be the
      later of the date of delivery of the notice of exercise and the date that
      the Exercise Condition has been satisfied and consequently Rule 12.2 shall
      not apply.

9.4   The Grantor may require a Participant to discharge or assume any liability
      to taxation or social security contributions which may arise on the
      exercise of an Option. The Company, any Participating Company, any Group
      Member, any employing company or the Trustees may withhold any amount and
      make any such arrangements as it considers appropriate to meet any
      liability to taxation or social security contributions in respect of
      Options (including their grant and exercise). These arrangements may
      include the sale of any Shares on behalf of a Participant or the reduction
      of the number of Shares receivable by the Participant.

10    ISSUE OR TRANSFER OF SHARES

10.1  The Company shall procure that sufficient Shares are available to transfer
      or allot to satisfy the exercise of all outstanding Options.

10.2  Subject to Rules 2.3 and 2.4, Shares shall be issued or transferred to the
      Participant (or his nominee) within 28 days following the date of
      effective exercise of the Option.

10.3  Shares issued or transferred pursuant to the Plan will rank pari passu in
      all respects with the Shares then in issue, except that they shall not
      rank for any right attaching to Shares by reference to a record date
      preceding the effective date of exercise.

                                       10
<PAGE>

10.4  If the Shares are listed on a recognised stock exchange, the Company shall
      apply for listing of any Shares issued pursuant to the Plan (and not
      already listed) as soon as practicable after their allotment.

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

10.6  The Grantor may determine at any time that a Participant who exercises his
      Option shall not pay the Option Price, but shall instead receive an amount
      (in Shares, other assets or cash) equal to the amount by which the Market
      Value of the Shares on the date of exercise in respect of the Option is
      exercised exceeds the Option Price.

11    ADJUSTMENTS

11.1  The number of Shares over which an Option is granted, and the Option Price
      (and where an 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)
      shall be adjusted in such manner as the Grantor shall determine following
      any capitalisation issue, any offer or invitation made by way of rights,
      subdivision, consolidation, reduction or other variation in the share
      capital of the Company which in the reasonable opinion of the Grantor
      justifies such an adjustment, so that (as nearly as may be without
      involving fractions of a Share) the aggregate Option Price payable in
      respect of an Option (if it was exercised in full) is unchanged.

11.2  Apart from pursuant to this Rule 11.2, no adjustment under Rule 11.1 above
      shall reduce the Option Price to less than the nominal value of a Share.
      Where an Option subsists over both issued and unissued Shares any such
      adjustment may only be made if the reduction of the Option Price of
      Options over both issued and unissued Shares can be made to the same
      extent. Any adjustment made to the Option Price of Options over unissued
      Shares shall only be made if and to the extent that the Board is
      authorised to capitalise from the reserves of the Company a sum equal to
      the amount by which the nominal value of the Shares in respect of which
      the Option is exercisable exceeds the adjusted aggregate Option Price and
      to apply such sum in paying up such amount on such Shares 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.

11.3  The Grantor may take such steps as it may consider necessary to notify
      Participants of any adjustment made under this Rule 11 and to call in,
      cancel, endorse, issue or reissue any certificate as a result of such
      adjustment.

12    ADMINISTRATION

12.1  The Board shall administer the Plan. The Board shall have full authority,
      consistent with the Plan to interpret and construe any provision of the
      Plan and to adopt such regulations for administering the Plan as it may
      deem necessary or appropriate. The Board's decision shall be final and
      binding on all parties.

12.2  Any notice or other communication under or in connection with the Plan may
      be given by personal delivery or by sending the same by electronic means
      or 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 an
      officer or employee of a Group Member, either to his last known address or
      to the address of the place of business at which he performs the whole or
      substantially the whole of the duties of his office or employment, and
      where a notice or other communication is given by post, it shall be deemed
      to have been received 72 hours after it was put into the post properly
      addressed and stamped and if by electronic means when the sender receives
      electronic confirmation of delivery or if not available 24 hours after
      sending the notice.

                                       11
<PAGE>

12.3  The Company may send to Participants copies of any notice or document
      normally sent by the Company to the holders of Shares.

12.4  In the case of partial exercise of an Option, the Grantor may in
      consequence call in, endorse, cancel and reissue, as it considers
      appropriate, any certificate for the balance of the Shares over which the
      Option was granted.

12.5  If any certificate is worn out, defaced or lost, it may be replaced on
      such evidence being provided as the Grantor may require.

12.6  The Participating Companies shall bear the costs of introducing and
      administering the Plan in such proportions as may be determined by the
      Company.

12.7  The Company and any Subsidiary of the Company may provide money to the
      Trustees or any other person to enable them or him to acquire Shares to be
      held for the purposes of the Plan, or enter into any guarantee or
      indemnity for those purposes, to the extent permitted by section 153 of
      the Companies Act 1985. In addition, the Company may require any
      Subsidiary of the Company to enter into such other agreement or agreements
      to require such Subsidiary of the Company to reimburse the Company for any
      other amounts paid by the Company under the Plan, directly or indirectly
      in respect of such Subsidiary's employees.

13    CHANGING THE PLAN

13.1  Subject to the rest of this Rule 13, the Board may at any time alter or
      add to all or any of the provisions of the Plan in any respect, (but only
      with the prior consent of the Trustees if there are subsisting Options
      which they have granted or agreed to satisfy which will be affected by the
      alteration or addition).

13.2  No alteration or addition to the material advantage of Participants or
      employees shall be made under Rule 13.1 without the prior approval by
      ordinary resolution of the members of the Company in general meeting,
      where such alteration or addition relates to:

      13.2.1      the definition of "Eligible Employee";

      13.2.2      the limits in Rule 3 and 4;

      13.2.3      the determination of the Option Price;

      13.2.4      the rights of Participants under Rule 11; and

      13.2.5      the terms of this Rule 13.2

      unless the alteration or addition is minor and is to benefit the
      administration of the Plan or is necessary or desirable in order to take
      account of any change in legislation or to obtain or maintain favourable
      tax, exchange control or regulatory treatment for any Group Member, any
      Participant or Eligible Employee.

13.3  No alteration or addition shall be made under Rule 13.1 which would
      materially abrogate or adversely affect the subsisting rights of a
      Participant unless it is made:

      13.3.1      with the consent in writing of such number of Participants as
                  hold Options under the Plan to acquire 75 per cent of the
                  affected Shares which would be issued or transferred if all
                  such Options granted and subsisting under the Plan were
                  exercised; or

      13.3.2      by a resolution at a meeting of Participants passed by not
                  less than 75 per cent of the Participants who attend and vote
                  either in person or by proxy,

                                       12
<PAGE>

      and for the purpose of this Rule 13.3 the provisions of the articles of
      association of the Company from time to time relating to shareholder
      meetings shall apply mutatis mutandis.

13.4  No alteration shall be made to the Plan if following the alteration the
      Plan would cease to be an employees' share scheme (as defined in section
      743 of the Companies Act 1985).

13.5  Notwithstanding any other provision of the Plan, other than Rule 13.1 the
      Grantor may, in respect of Options granted to Participants who will be
      subject to taxation outside the United Kingdom on their remuneration amend
      or add to the provisions of the Plan and the terms of Options as it
      considers necessary or desirable to take account of or to mitigate or to
      comply with relevant overseas taxation, securities or exchange control
      laws provided that the terms of Options granted to such Participants are
      not overall more favourable than the terms of Options granted to other
      Participants.

13.6  As soon as reasonably practicable the Grantor shall give notice of any
      alteration or addition under Rule 13.1 to any Participant materially
      affected.

13.7  No alteration or addition under Rule 13 shall require the consent of any
      person unless expressly provided in these Rules.

14    LEGAL ENTITLEMENT

14.1  Nothing in the Plan or in any instrument executed pursuant to it will
      confer on any person any right to continue in employment, nor will it
      affect the right of any Group Member to terminate the employment of any
      person without liability at any time with or without cause, nor will it
      impose upon the Board or any other person any duty or liability whatsoever
      (whether in contract, tort or otherwise) in connection with:

      14.1.1      the lapsing of any Option pursuant to the Plan;

      14.1.2      the failure or refusal to exercise any discretion under the
                  Plan; and/or

      14.1.3      a Participant ceasing to hold office or employment for any
                  reason whatever.

14.2  Options shall not (except as may be required by taxation law) form part of
      the emoluments of individuals or count as wages or remuneration for
      pension or other purposes.

14.3  Any person who ceases to be an officer or employee with any Group Member
      as a result of the termination of his office or employment for any reason
      and however that termination occurs, whether lawfully or otherwise, shall
      not be entitled and shall be deemed irrevocably to have waived any
      entitlement by way of damages for dismissal or by way of compensation for
      loss of office or employment or otherwise to any sum, damages or other
      benefits to compensate that person for the loss or alteration of any
      rights, benefits or expectations in relation to any Option, the Plan or
      any instrument executed pursuant to it.

14.4  Nothing in the Plan shall be deemed to give any Eligible Employee any
      right to participate in the Plan.

15    GENERAL

15.1  The Plan shall terminate on the tenth anniversary of its adoption by the
      Company or at any earlier time by the passing of a resolution by the Board
      or an ordinary resolution of the Company in general meeting. Termination
      of the Plan will be without prejudice to the subsisting rights of
      Participants.

15.2  These Rules will be governed by and construed in accordance with the laws
      of England. Any person referred to in this Plan submits to the exclusive
      jurisdiction of the English courts.

                                       13
<PAGE>

                THE BOC GROUP EXECUTIVE SHARE OPTION SCHEME 2003

                                   SCHEDULE I

                              UK APPROVED SCHEDULE

1.    DEFINITIONS

1.1   The words and expressions used in this UK Approved Schedule which have
      capital letters have the meanings set out below, and words and expressions
      not otherwise defined have the same meaning they have in the Rules of the
      Plan to which this UK Approved Schedule is attached. In the event of any
      conflict between the rules of this UK Approved Schedule and the Rules of
      the Plan the provisions of the UK Approved Schedule will take precedence
      insofar as Options granted to and exercised by UK Eligible Enployees are
      concerned.

      Associated Company            In relation to the Company:

                                    (A)     any company which has Control of the
                                            Company; and

                                    (B)     any company which is under the
                                            Control of the Company or any
                                            company referred to in (A) above;

      Close Company                 A close company as defined in Section 414(1)
                                    of the Taxes Act as varied by Paragraph 8 of
                                    Schedule 9 to the Taxes Act;

      Eligible Employee             Any person who at the Date of Grant is:

                                    (A)     an employee of a Participating
                                            Company, who is not a director;
                                            or

                                    (B)     a full-time director of a
                                            Participating Company who is
                                            required under the terms of his
                                            office or employment to devote not
                                            less than 25 hours per week
                                            (excluding meal breaks) to his
                                            duties;

                                    and in either case, not precluded by
                                    Paragraph 8 of Schedule 9 of the Taxes Act
                                    from participating in the Plan;

      Market Value                  In relation to a Share on any day:

                                    (A)     if the Shares are then fully quoted
                                            on the London Stock Exchange, its
                                            closing middle market quotation (as
                                            derived from the Daily Official
                                            List) for the immediately preceding
                                            Dealing Day;

                                    (B)     otherwise, its market value,
                                            determined in accordance with Part
                                            VIII of the Taxation of Chargeable
                                            Gains Act 1992;

      Material Interest             The meaning given by Section 187(3) of the
                                    Taxes Act;

                                       14
<PAGE>

      Member of a Consortium        The meaning given by Section 187(7) of the
                                    Taxes Act;

      Share                         A fully paid ordinary share in the capital
                                    of the Company which satisfies the
                                    requirements of Paragraphs 10 to 14 of
                                    Schedule 9 to the Taxes Act;

1.2   For the purposes of this UK Approved Schedule the following words shall be
      added to Paragraph (B) in the definition of Market Value: "and agreed in
      advance with the Shares Valuation Division of the Inland Revenue".

2.    GENERAL

2.1   The purpose of this UK Approved Schedule is to benefit Eligible Employees
      who are, or may become, resident in the United Kingdom.

2.2   An Option may not be granted under the UK Approved Schedule before this
      Schedule has been approved by the Inland Revenue under the Taxes Act.

2.3   This UK Approved Schedule applies to any grant of Options specified as
      having been granted subject to its terms and conditions.

3.    AMENDMENTS TO THE PLAN

      For the purpose of Options granted under this UK Approved Schedule, the
      Rules of the Plan shall apply subject to the following amendments:

3.1   No Option shall be granted under the UK Approved Schedule to an Eligible
      Employee at any time if it would result in:

      3.1.1       the aggregate Market Value of the Shares at the Date of Grant
                  which he may acquire in pursuance of rights obtained under the
                  UK Approved Schedule; and

      3.1.2       the aggregate market value of shares which the Eligible
                  Employee could acquire by the exercise of an option under any
                  other Executive Share Option Plan approved under Schedule 9 of
                  the Taxes Act established by the Company or any Associated
                  Company and not exercised;

      to exceed (pound)30,000 or such other limit contained from time to time in
      Paragraph 28(1) of Schedule 9 to the Taxes Act. Any Option granted under
      this Schedule will be limited and take effect so that the above limit will
      not be exceeded. The Grantor may call in the option certificate for
      endorsement, replacement or cancellation (as appropriate).

3.2   Rule 2.9 of the Plan shall not apply to Options granted under this UK
      Approved Schedule.

3.3   For the purpose of Rule 3.1 above, the UK sterling equivalent of the
      Market Value of a Share on any day shall be determined by taking the
      mid-market spot rate of that currency at the close of business for that
      day published by the Financial Times on that day, or if that day is not a
      Dealing Day, the mid-market spot rate for that currency at the close of
      business published in the Financial Times on the next preceding Dealing
      Day. If the grant of an Option would otherwise cause the limit in Rule 3.1
      to be exceeded, it shall take effect as the grant of an Option under the
      UK Approved Schedule over the highest number of Shares which does not
      cause the limit to be exceeded together with the grant under the Plan over
      the balance of the Shares.

                                       15
<PAGE>

3.4   Rule 2.7 of the Plan shall be amended to read as follows: "Subject to the
      rights of exercise by the Participant's personal representatives pursuant
      to Rule 6.1, every Option shall be personal to the Participant to whom it
      is granted and shall not be transferable or in any way alienable.

3.5   Rules 2.12 and 2.13 of the Plan shall not apply to Options granted under
      this UK Approved Schedule.

      For the avoidance of doubt an Option under this UK Approved Schedule shall
      refer to an option to acquire Shares and not an option to acquire ADSs.

3.6   Rule 2.10 of the Plan shall not apply to Options granted under this UK
      Approved Schedule.

3.7   An Option may not be exercised at any time when a Participant has or has
      had within the preceding 12 months a Material Interest in a Close Company
      which is:

      3.7.1       the Company; or

      3.7.2       any company which has Control of the Company or is a Member of
                  a Consortium which owns the Company.

3.8   In Rule 6 and Rule 7.6 of the Plan, the words "unless and to the extent
      the Grantor determines otherwise" shall not apply to Options granted under
      this UK Approved Schedule.

3.9   The Grantor may extend the exercise period in Rules 6.3, 6.4 and, to the
      extent that exercise is permitted in Rule 6.6 of the Plan, to the later of
      42 months from the Date of Grant and (if relevant) 42 months from the last
      occasion that the Participant exercised an option to which Section 185(3)
      of the Taxes Act applied.

3.10  Rule 8.2 of the Plan shall be amended as follows:

      3.10.1      The words "(for the purposes of Paragraph 15 of Schedule 9 to
                  the Taxes Act) is equivalent to the Old Option and" shall be
                  included after "... in consideration of the grant to him of an
                  Option ("the New Option") which"; and

      3.10.2      The words "falling within Paragraph 10(b) or (c) of Schedule 9
                  to the Taxes Act)" shall be included after "... (whether the
                  company which has obtained Control of the Company itself or
                  some other company".

      3.10.3      Rule 8.2.3 of the Plan shall not apply to Options granted
                  under this UK Approved Schedule

3.11  Rule 10.6 of the Plan shall not apply to Options granted under this UK
      Approved Schedule.

3.12  No adjustment shall be made pursuant to Rule 11.1 of the Plan without the
      prior approval of the Inland Revenue (so long as the UK Approved Schedule
      is approved by the Inland Revenue) which relate to Options granted under
      the UK Approved Schedule.

3.13  No adjustment may be made in accordance with Rule 11 of the Plan in
      respect of Options granted under the UK Approved Schedule in the event of
      a demerger of the Company or other exceptional event that does not include
      the variation of the share capital of the Company.

3.14  If an alteration or addition is made by the Board under Rule 13.1 of the
      Plan at a time when the UK Approved Schedule is approved by the Inland
      Revenue under Schedule 9 to the Taxes Act, such alteration or addition
      shall not have effect on Options pursuant to the UK Approved Schedule
      until it has been approved by the Inland Revenue.

                                       16
<PAGE>

3.15  If an Eligible Employee's remuneration comprises either wholly or in part
      of payments in a currency other than pounds sterling ("Foreign Currency"),
      for the purpose of calculating any maximum number of Shares which may be
      acquired pursuant to the exercise of Options under the UK Approved
      Schedule, that Foreign Currency shall be converted into pounds sterling at
      the mid-market spot rate for that currency at the close of business
      published by the Financial Times on the Date of Grant, or if this is not a
      Dealing Day, the mid-market spot rate for that currency at the close of
      business published in the Financial Times on the next preceding Dealing
      Day.

                                       17
<PAGE>

                THE BOC GROUP EXECUTIVE SHARE OPTION SCHEME 2003

                                   SCHEDULE 2

                                  US EMPLOYEES

1.    DEFINITIONS

1.1   The words and expressions used in this Schedule 2 (the `US Schedule')
      which have capital letters have the meanings set out below, and words and
      expressions not otherwise defined have the same meaning they have in the
      Rules of the Plan to which this Schedule 2 is attached:

      Code                          The United States Internal Revenue Code of
                                    1986 (as amended);

      Eligible Employee             (A)     For the  purposes of an ISO, any
                                            person who at the Date of Grant is
                                            an employee or director in his
                                            capacity as an employee of either
                                            the Company or a Parent or
                                            Subsidiary of the Company and who is
                                            required to devote substantially the
                                            whole of his working time to the
                                            business of the Company and its
                                            Subsidiaries;

                                    (B)     For the purposes of an Option which
                                            is not an ISO, the meaning given in
                                            the Plan;

      ISO                           An incentive stock option within the meaning
                                    of section 422 of the Code;

      Option Price                  (A)     The meaning given in the Plan; and

                                    (B)     In the case of an ISO where the
                                            Eligible Employee owns (within the
                                            meaning of Section 422 (b) (6) of
                                            the Code) Shares equal to more than
                                            10% of the total combined voting
                                            power of all classes of shares of
                                            the Company, or of its Parent of
                                            Subsidiary (a `Ten Percent
                                            Shareholder'), not less than 110% of
                                            the Market Value of a Share on the
                                            Date of Grant;

      Parent                        Any company which is a parent corporation of
                                    the Company within the meaning of section
                                    424(e) of the Code;

      Securities Act                the United States Securities Act of 1933
                                    (as amended);

      Subsidiary                    (A)     The meaning given by section 736 of
                                            the Companies Act 1985; and

                                    (B)     A subsidiary corporation within the
                                            meaning of section 424(f) of the
                                            Code; US Person the meaning given by
                                            Rule 902(k) promulgated under the
                                            Securities Act;

      US Person                     the meaning given by Rule 902(k) promulgated
                                    under the Securities Act;

                                       18
<PAGE>

2.    GENERAL

2.1   The purpose of this Schedule 2 is to benefit Eligible Employees who are
      employed or remunerated in the United States or who are citizens of the
      United States.

2.2   Options granted to Eligible Employees may be either ISOs or Options which
      are not ISOs ("non-qualified stock options").

2.3   This Schedule 2 is contingent upon shareholder approval within twelve
      months before or after adoption of this Schedule 2 by the Board. Failure
      to receive such approval shall render Options granted under this Schedule
      2 null and void.

2.4   The grant and exercise of any Option shall be subject to fulfilling the
      requirements (including obtaining any required approval or consent) of the
      provisions of the Securities Act or of any applicable regulation or
      enactment. Neither the Options nor the Shares may be resold or otherwise
      transferred within the United States of America, its territories or
      possessions, any State of the United States of America or the District of
      Columbia or to any U.S. Person, unless they are registered under the
      Securities Act and qualified under all state securities laws or an
      exemption from such registration and qualification is available.

2.5   Shares shall not be issued to a US Person pursuant to the exercise of an
      Option 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 Securities Act, the United States
      Securities Exchange Act of 1934, as amended, the rules and regulations
      promulgated thereunder and all applicable state securities laws, and shall
      be further subject to the approval of Counsel for the Company with respect
      to such compliance.

2.6   Any adjustment pursuant to Rule 11 of the Plan shall, in the case of ISOs,
      be made in a manner consistent with Section 422 of the Code.

2.7   The Company shall (i) administer the US Schedule, (ii) establish from time
      to time such rules and regulations as it may deem appropriate for the
      proper administration of the US Schedule, and (iii) make such
      determinations under, and such interpretations of, and take such actions
      in connection with, the US Schedule as it may deem necessary or advisable,
      including (but not by way of limitation) determinations, interpretations
      and actions to ensure that Options that are intended to qualify as ISOs
      shall so qualify.

2.8   An ISO may not be exerciseable more than 10 years after the Date of Grant
      (5 years in the case of an ISO granted to a Ten Percent Shareholder).

2.9   The US Schedule may be further modified to ensure that any Option that is
      intended to be an ISO under the US Schedule will comply with the
      requirements of Section 422 of the Code.

2.10  It shall be a condition to the obligation of the Company to deliver Shares
      or ADSs pursuant to any Option under the US Schedule that the Participant
      pays to the Company (or the Subsidiary that employs the Participant) such
      amount as may be required by the Company or such Subsidiary for the
      purpose of satisfying any liability for any US Federal, state or local
      taxes of any kind required to be withheld with respect thereto. Any Option
      granted under the US Schedule may require the Company (or the Subsidiary
      that employs the recipient), or permit the recipient of the Option to
      elect, in accordance with any applicable rules established by the Company,
      to withhold or to pay all or a part of the amount of the withholding taxes
      in Shares or ADSs. Such election may be denied by the Company in its sole
      discretion, or may be made subject to certain conditions specified by the
      Company.

                                       19
<PAGE>

      The applicable ISO award shall provide that if a Participant makes a
      disposition, within the meaning of Section 424(c) of the Code and the
      regulations promulgated thereunder, of any Shares or ADSs issued to such
      Participant pursuant to the exercise of an ISO award within the two-year
      period commencing on the Date of Grant or within the one-year period
      commencing on the date of transfer of such Shares or ADSs to the
      Participant pursuant to such exercise, the Participant shall, within 10
      days of such disposition, notify the Company of it (or the Subsidiary that
      employs the Participant), by delivery of written notice to the Company or
      such Subsidiary at its principal executive office.

3.    AMENDMENTS TO THE PLAN

      For the purposes of Options granted under this Schedule 2, the Rules of
      the Plan shall apply subject to the following amendments:

3.1   In respect of ISOs only, Rule 2.7 of the Plan shall be amended to read as
      follows: "Every Option shall be personal to the Participant to whom it is
      granted and shall not be transferable otherwise than by will or the laws
      of descent and distribution, and is exercisable, during his lifetime, only
      by him."

3.2   Rule 5.1.2 of the Plan shall be amended to read as follows: "except where
      exercise is allowed as described in Rule 6 or 7, by a Participant while he
      is an employee, or officer in his capacity as an employee, of a Group
      Member."

3.3   In Rule 6.3 of the Plan, the words "injury, ill-health or disability
      (evidenced to the satisfaction of the Board)" shall be replaced by the
      following: "permanent and total disablement, meaning that the Participant
      is unable to engage in any substantial gainful activity by reason of any
      medically determinable physical or mental impairment which can be expected
      to result in death or which has lasted or can be expected to last for a
      continuous period of not less than twelve months".

3.4   In Rules 6.2 and 7.1 and 7.4.2, the reference to "six months" shall be
      replaced by "three months".

4.    LIMITS

4.1   Shares placed under Options granted under this Schedule 2 shall be taken
      into account for the purpose of Rule 4 of the Plan and vice versa.

4.2   The aggregate Market Value (determined at the Date of Grant) of Shares
      with respect to which ISOs granted under this Schedule 2 and under all
      incentive stock option plans of the Company and its Parent and
      Subsidiaries shall first become exercisable by any Participant in any
      calendar year shall not exceed 100,000 United States Dollars or the
      Sterling equivalent, and, in the event that such limit is exceeded such
      ISOs shall be treated, to the extent of such excess, as nonqualified stock
      options. To the extent that such Participant holds two or more ISOs which
      would become exercisable for the first time in the same calendar year, the
      foregoing limitation on the exercisability of such Options as Incentive
      Stock Options shall be applied on the basis of the order in which such
      Options are granted.

4.3   The maximum aggregate number of Shares which may be issued under the Plan
      with respect to ISOs (the "ISO Maximum") is 49,000,000. Shares subject to
      outstanding Options shall, to the maximum permitted by Section 422 of the
      Code, be available for subsequent issuance under this Schedule 2 and the
      ISO Maximum to the extent the Options expire, terminate, or are cancelled
      for any reason prior to exercise in full. Should any changes be made to
      the Shares by reason of any sub-division, stock dividend,
      recapitalisation, consolidation of Shares, exchange of Shares, or other
      change affecting the Shares without the receipt of consideration,
      appropriate adjustment shall be made, in a manner consistent within
      Section

                                       20
<PAGE>

      422 of the Code, to the maximum number of Shares subject to the Plan and
      the ISO Maximum and to the Option Price under each outstanding Option in
      order to prevent dilution or enlargement of benefits thereunder.
      Adjustments determined by the Grantor, or their properly authorised
      designee, shall be binding and conclusive.

                                       21
<PAGE>EXHIBIT 4.2

                                  RULES OF THE
                                    BOC GROUP
                            LONG TERM INCENTIVE PLAN

                    Adopted by the Company on 17 January 2003

                                Deloitte & Touche

                                   180 Strand

                                     London

                                    WC2R 1BL

                               Tel: 020 7438 3000

<PAGE>

                             RULES OF THE BOC GROUP

                            LONG TERM INCENTIVE PLAN

1.    DEFINITIONS & INTERPRETATION

1.1   In this Plan, the following words and expressions shall have the meanings
      set out below:

      American Depository Shares    a receipt or certificate representing an
                                    interest in Shares in the Company and the
                                    term "ADS" shall be construed accordingly;

      Award                         an award under this Plan which is either
                                    subsisting or is proposed to be granted and
                                    which shall be:

                                    (A)     a Nil Cost Option; or

                                    (B)     a Conditional Award; or

                                    (C)     in such other form as the Grantor
                                            shall determine;

      Award Date                    the date the Grantor grants an Award under
                                    Rule 2.1;

      Board                         the board of directors of the Company from
                                    time to time or a duly authorised committee
                                    of it;

      Company                       The BOC Group plc (registered no. 22096);

      Conditional Award             subject to Rule 2.10, a conditional right to
                                    acquire Shares, cash or other assets at no
                                    cost to the Participant;

      Control                       the meaning given by Section 840 of the
                                    Taxes Act;

      Dealing Day                   any day on which the London Stock Exchange
                                    is open for the transaction of business;

      Discretionary Share Plan      an Employees' Share Scheme in which
                                    participation is solely at the discretion of
                                    the Board;

      Eligible Employee             any person who at the Award Date is an
                                    employee or an executive director of a
                                    Participating Company;

      Employees' Share Scheme       the meaning given by Section 743 of the
                                    Companies Act 1985;

                                       2
<PAGE>

      Exchange Period               six months or such other period as the Board
                                    shall determine;

      Exercise Date                 the date on which a Nil Cost Option is
                                    exercised as described in Rule 11.3;

      Grantor                       the Board (acting on behalf of the Company)
                                    or the Trustees acting on the recommendation
                                    or with the consent of the Board (as the
                                    case may be);

      Grant Period                  the period of 42 days commencing on any of
                                    the following:

                                    (A)     the date on which the Plan is
                                            adopted by the Company;

                                    (B)     the day after the Company makes an
                                            announcement of its results for any
                                            period;

                                    (C)     any day on which changes to the
                                            legislation affecting Employees'
                                            Share Schemes is proposed or made;

                                    (D)     the date of commencement of an
                                            Eligible Employee's employment with
                                            a Participating Company, but only in
                                            respect of that Eligible Employee;
                                            or

                                    (E)     any day on which the Board resolves
                                            that exceptional circumstances exist
                                            which justify the grant of options

                                    provided that if the Grantor cannot grant
                                    Awards due to primary or secondary
                                    legislation, regulation or government
                                    directive or due to any code adopted by the
                                    Company (including by reason of its share
                                    capital being listed on the London Stock
                                    Exchange) the relevant Grant Period shall be
                                    42 days commencing on the day after the
                                    restriction is lifted;

      Group Member                  (A)     a Participating Company; and

                                    (B)     the Company's holding company
                                            (within the meaning of Section 736
                                            of the Companies Act 1985) or a
                                            Subsidiary of the Company or the
                                            Company's holding company;

      London Stock Exchange         the stock exchange operated by the London
                                    Stock Exchange plc or any successor
                                    operating the same;

                                       3
<PAGE>

      Market Value                  (i)     in relation to a Share on any day
                                            its closing middle market quotation
                                            (as derived from the Daily Official
                                            List) for the immediately preceding
                                            Dealing Day;

                                    (ii)    in relation to an ADS on any day
                                            means an amount equal to half-way
                                            between the high and low sales
                                            prices of ADSs recorded on the New
                                            York Stock Exchange on the
                                            applicable valuation date;

      Nil Cost Option               subject to Rule 2.10, a right to acquire
                                    Shares, cash or other assets with a nil
                                    exercise price;

      Participant                   any person to whom an Award has been granted
                                    or (where the context so admits) his
                                    personal representatives;

      Participating Company         (iii)   the Company; and

                                    (iv)    any other company which is under the
                                            Control of the Company and is a
                                            Subsidiary of the Company except one
                                            which the Board has designated shall
                                            not be a Participating Company; and

                                    (v)     if so designated by the Grantor, any
                                            company owned by the Company jointly
                                            with another person together with
                                            any Subsidiary of such company;

      Performance Conditions        a condition or conditions imposed on the
                                    vesting of an Award pursuant to Rule 2.2;

      Performance Period            a period of three years or such other period
                                    as the Grantor shall determine on or prior
                                    to the Award Date;

      Plan                          The BOC Group Long Term Incentive Plan as
                                    from time to time amended in accordance with
                                    the Rules;

      Rules                         the rules of the Plan as amended from time
                                    to time;

      Share                         a fully paid ordinary share in the capital
                                    of the Company;

      Subsidiary                    the meaning given by Section 736 of the
                                    Companies Act 1985;

      Trustees                      the trustee or trustees of the time being of
                                    any employee benefit trust established for
                                    the benefit of all or substantially all of
                                    the Eligible Employees;

                                       4
<PAGE>

      Vest                          in relation to any Conditional Award, the
                                    point at which a Participant first becomes
                                    entitled to call for the Shares, cash or
                                    other assets comprised in the Award and in
                                    relation to a Nil Cost Option, the point at
                                    which that Nil Cost Option first becomes
                                    exercisable and "Vesting" and "Vested" shall
                                    be construed accordingly;

      Vesting Date                  the date on which an Award Vests.

1.2   Where appropriate, references to an Act of Parliament shall include
      reference to any substantially equivalent foreign legislation and
      references to any statutory provisions are to those provisions as amended,
      extended or re-enacted from time to time and shall include any regulations
      or other subordinate legislation made under them.

1.3   The Interpretation Act 1978 shall apply to these Rules on the same basis
      as if they were an Act of Parliament.

1.4   The headings in the Rules are for the sake of convenience only and should
      be ignored when construing the rules.

2.    GRANT OF AWARDS

2.1   During a Grant Period, the Grantor may grant to any Eligible Employee an
      Award over such number of Shares and in such form as it may determine.

2.2   The Grantor will make the Vesting of an Award conditional on satisfying
      one or more conditions. Such conditions must be objective and specified at
      the Award Date and must not be waived or changed by the Grantor unless in
      accordance with their terms or where events happen which causes the
      Grantor reasonably to consider that:

      2.2.1       a changed Performance Condition would be a fairer measure of
                  performance, and would not be substantially more or less
                  difficult to satisfy than the condition as it existed or when
                  first imposed; and

      2.2.2       the changed Performance Condition is similar in nature.

2.3   The grant of an Award or the delivery of any Shares following Vesting
      shall be subject to obtaining any approval or consent required under any
      applicable laws, regulations of governmental authority and the
      requirements of the United Kingdom Listing Authority and any other
      securities exchange on which the Shares are traded.

2.4   No Award may be granted, exercised, released or surrendered at a time when
      such grant, exercise, release or surrender would not be in accordance with
      the "Model Code on Directors' Dealings in Securities" issued by the United
      Kingdom Listing Authority, or any other code adopted by the Company, as
      amended from time to time.

2.5   The Grantor shall execute a deed as evidence of the grant of an Award
      which deed may be in respect of an individual Award or any number of
      Awards granted at the same time. As soon as reasonably practicable after
      the Award Date, the Grantor shall issue to each

                                       5
<PAGE>

      Participant a certificate in respect of the Award which shall include
      details of the form of the Award and otherwise be in such form as the
      Grantor may prescribe from time to time.

2.6   Participants are not required to pay for the grant of an Award.

2.7   Neither an Award nor any rights in respect of it may be transferred,
      assigned, or otherwise disposed of by a Participant to any other person
      without the Grantor's prior consent except that, on the death of a
      Participant, an Award may be transmitted to his personal representatives.

2.8   A Participant may surrender all or part of his Award by notice in writing
      to the Secretary of the Company within 30 days of the Award Date. If this
      happens, the Award will, to the extent surrendered, be deemed for all
      purposes never to have been granted, and no further Awards shall be
      granted to the Participant within 60 days of the date of surrender. No
      consideration is payable for the surrender.

2.9   If the Grantor purports to grant an Award which is inconsistent with the
      limits in Rules 3 or 4 the Award will be limited and will take effect from
      the Award Date on a basis consistent with the Rules and the Grantor may
      call in the award certificate for endorsement replacement or cancellation.

2.10  The Grantor may grant an Award to acquire cash or other assets which:

      2.10.1      on Vesting, in the case of a Conditional Award, and on
                  exercise, in the case of a Nil Price Option, (and on such
                  other date determined by the Grantor in the case of any other
                  form of Award) delivers an amount to the Participant related
                  to the value of such number of Shares as is specified in the
                  Award

      2.10.2      is otherwise subject to the Rules which shall be interpreted
                  in such manner as the Grantor reasonably determines is
                  necessary to give effect to this Rule 2.10.

2.11  All Awards granted to Participants who are resident in the U.S. shall be
      evidenced by an instrument(s) in such form or forms as may from time to
      time be approved by the Company which shall set out the manner in which a
      Participant may exercise his Award and the form of payment for the Shares
      or ADS issuable or transferable under it.

2.12  The Company may arrange for any Award to constitute a right to ADS rather
      than Shares, in which case the references to "Shares" in the Plan shall be
      deemed to be references to "ADS", as the context may require.

2.13  In its discretion and upon such terms and conditions as it may implement
      from time to time, the Company may arrange for (i) any Award over Shares
      to be satisfied in the form of ADS, and for any Award over ADS to be
      satisfied in the form of Shares and (ii) for the exercise price of any
      Award expressed in Sterling to be paid in U.S. dollars, and for the
      exercise price of any Award expressed in U.S. dollars to be paid in
      Sterling using such rate of exchange as the Grantor may reasonably
      specify.

                                       6
<PAGE>

3.    INDIVIDUAL LIMITS

3.1   Subject to Rule 3.2, no Award shall be granted to an Eligible Employee
      which would, at the Award Date, result in the Market Value (measured at
      the relevant Award Date) of the Shares over which he has been granted
      Awards under the Plan in respect of any financial year of the Company
      exceeding 200% of his annual rate of basic salary.

3.2   In calculating the limit in Rule 3.1, no account shall be taken of any
      Shares which are comprised in an Award to ensure that a Participant who
      agrees to satisfy any liability to employer's national insurance
      contributions (or the overseas equivalent to the extent this is lawful) is
      not financially disadvantaged.

3.3   In calculating the limit in Rule 3.1 where Awards are granted over cash or
      assets other than Shares the amount of such cash or the value of such
      assets at the Award Date shall be included.

4.    PLAN LIMITS

4.1   In any ten year period the number of Shares which may be allocated under
      the Plan and under any other Employees' Share Scheme adopted by the
      Company shall not exceed such number as represents ten per cent of the
      issued ordinary share capital of the Company from time to time.

4.2   In any twelve month period, the number of Shares allocated under the Plan
      and under any other Discretionary Share Plan adopted by the Company shall
      not exceed such number as represents 0.5 per cent of the issued ordinary
      share capital of the Company from time to time unless the number of Shares
      to be allocated under the Plan and under any other Discretionary Share
      Plan adopted by the Company, when aggregated with the number of Shares in
      any ten year period already allocated under the Plan and under any other
      Discretionary Share Plan adopted by the Company, represents less than five
      per cent of the issued ordinary share capital of the Company from time to
      time,

4.3   In determining the above limits:

      4.3.1       any Shares allocated to the Trustees under the Plan or any
                  other Employees' Share Scheme adopted by the Company shall be
                  included; and

      4.3.2       no account shall be taken of any Shares where the right to
                  acquire such Shares was released or lapsed without being
                  exercised, including pursuant to Rule 2.8.

4.4   In this Rule "allocate" shall mean, in the case of any share option plan,
      the placing of unissued shares under option and, in relation to other
      types of Employees' Share Scheme the commitment to issue shares or the
      issue and allotment of shares (whichever is the earlier).

5.    TERMINATION OF EMPLOYMENT

5.1   If a Participant dies, even if any Performance Condition has not been
      satisfied, a proportion of his Award shall Vest (which proportion will
      reflect the number of whole months of the

                                       7
<PAGE>

      Performance Period which have elapsed at the date of death) unless and to
      the extent the Grantor determines otherwise within 30 days from the date
      of death. The proportion of an Award that Vests shall be calculated as
      soon as practicable and notified to the Participant's personal
      representatives, and the provisions of Rule 10 and 11 (as appropriate)
      shall apply accordingly.

5.2   If a Participant retires from a Group Member before the end of the
      Performance Period, subject to satisfying any Performance Condition, a
      proportion of his Award shall Vest at the end of the Performance Period
      (which proportion will reflect the number of whole months of the
      Performance Period which have elapsed at the date of his retirement)
      unless and to the extent that the Grantor determines otherwise within 30
      days from the date of retirement. The provisions of Rules 10 or 11 (as
      appropriate) shall apply accordingly.

5.3   If a Participant ceases to hold office or employment with a Group Member
      by reason of injury, ill-health or disability (evidenced to the
      satisfaction of the Board), a proportion of his Award shall Vest on the
      date of cessation, even if any Performance Condition has not been
      satisfied (which proportion will reflect the number of whole months of the
      Performance Period which have elapsed at the date of cessation) unless and
      to the extent the Grantor determines otherwise within 30 days from the
      date of cessation. The provisions of Rules 10 or 11 (as appropriate) shall
      apply accordingly.

5.4   If a Participant ceases to hold office or employment with a Group Member
      by reason either of job elimination or a reduction in workforce directly
      affecting him (as determined in the opinion of the Board), a proportion of
      his Award shall Vest on the date of cessation, even if any Performance
      Condition has not been satisfied (which proportion will reflect the number
      of whole months of the Performance Period which have elapsed at the date
      of cessation) unless and to the extent the Grantor determines otherwise
      within 30 days from the date of cessation. The provisions of Rules 10 or
      11 (as appropriate) shall apply accordingly.

5.5   If a Participant ceases to hold office or employment with a Group Member
      by reason of the company in the Group which employees him ceasing to be a
      Group Member or because of the transfer or sale of the undertaking (or
      part of the undertaking) in which he is employed to a person who is not a
      Group Member, a proportion of his Award shall vest on the date of
      cessation, even if any Performance Condition has not been satisfied (which
      proportion will reflect the number of whole months of the Performance
      Period which have elapsed at the date of cessation) unless and to the
      extent the Grantor determines otherwise within 30 days from the date of
      cessation. The provisions of Rules 10 or 11 (as appropriate) shall apply
      accordingly.

5.6   If a Participant ceases to hold office or employment with a Group Member
      before the end of the Performance Period for any reason other than those
      specified in Rules 5.1, 5.2, 5.3, 5.4 and 5.5 his participation in the
      Plan will terminate and any Awards will lapse, unless and to the extent
      the Grantor determines otherwise within three months of the date of
      cessation.

5.7   For the purposes of this Rule 5 and Rules 10 and 11 below, a Participant
      shall not be treated as ceasing to hold office or employment with a Group
      Member until he has ceased to hold office or employment with all Group
      Members

5.8   For the purposes of the Plan, a woman on maternity leave will not cease to
      hold an office or employment until the earlier of the date on which she
      notifies her employer of her intention

                                       8
<PAGE>

      not to return or the date on which she ceases to have statutory or
      contractual rights to return to work.

6.    LAPSING OF AWARDS

6.1   An Award shall lapse on the earliest of:

      6.1.1       the Participant ceasing to hold an office or employment or
                  giving or being given notice to terminate employment with a
                  Group Member in any circumstances except where:

                  6.1.1.1        any provisions in Rule 5 or (following Vesting)
                                 Rule 10.2 apply; or

                  6.1.1.2        it arises during any of the periods specified
                                 in Rule 7 other than for an act or omission of
                                 the Participant entitling his employer to
                                 terminate without notice his office or
                                 employment or where the Participant gives
                                 notice to terminate;

      6.1.2       in the case of a Nil Cost Option only, the earlier of:

                  6.1.2.1        the tenth anniversary of the Award Date (or
                                 such other period as determined by the grantor
                                 at the Award Date);

                  6.1.2.2        twelve months after the death of the
                                 Participant;

                  6.1.2.3        six months after the expiry of the Performance
                                 Period on which a Participant retires from a
                                 Group Member as set out in Rule 5.2;

                  6.1.2.4        twelve months after the date on which the
                                 Participant ceases to hold office or employment
                                 with a Group Member for any of the reasons set
                                 out in Rule 5.3;

                  6.1.2.5        three months after the date on which the
                                 Participant ceases to hold office or employment
                                 with a Group Member for any of the reasons set
                                 out in Rule 5.4 or Rule 5.5; and

                  6.1.2.6        the expiry of any of the applicable periods in
                                 Rule 7.

      6.1.3       where Rule 8.1 applies the expiry of the Exchange Period
                  except where an Award is released in consideration of the
                  grant of a New Award pursuant to Rule 8.2;

      6.1.4       the day after the Vesting Date to the extent that the Award
                  has not Vested unless and to the extent that the Award is
                  exchanged for a New Award under Rule 8.2;

      6.1.5       subject to Rule 7.5, the passing of an effective resolution or
                  the making of an order by the Court for the winding up of the
                  Company;

                                       9
<PAGE>

      6.1.6       the Participant being deprived of the legal or beneficial
                  ownership of the Award by operation of law or being declared
                  bankrupt, unless the Grantor in its absolute discretion
                  determines otherwise; and

      6.1.7       the Participant purporting to transfer or dispose of his Award
                  or any rights in respect of it other than as permitted under
                  Rule 2.7.

7.    TAKEOVER RECONSTRUCTION AND WINDING UP

7.1   Subject to Rules 7.3, 7.6 and 8.1 below, if any person obtains Control of
      the Company as a result of making, either:

      7.1.1       a general offer to acquire the whole of the issued ordinary
                  share capital of the Company (which is either unconditional or
                  made on a condition such that if it is satisfied the person
                  making the offer will have Control of the Company); or

      7.1.2       a general offer to acquire all the shares in the Company which
                  are of the same class as the Shares,

      (in either case disregarding any shares already owned by it or by any
      company associated with it), Awards shall Vest when the person making the
      offer has obtained Control of the Company and any condition subject to
      which the offer is made has been satisfied. A Nil Cost Option may then be
      exercised within the following six months.

7.2   For the purpose of Rule 7.1 a person shall be deemed to have obtained
      Control of the Company if he and others acting in concert (as defined by
      the City Code on Take-overs and Mergers) with him have together obtained
      Control of it.

7.3   Subject to Rules 7.6 and 8.1, if any person becomes bound or entitled to
      acquire Shares under sections 428 to 430F of the Companies Act 1985 Awards
      shall Vest on the date on which that person first becomes so bound or
      entitled. A Nil Cost Option may then be exercised within the following
      four weeks.

7.4   If under section 425 of the Companies Act 1985 it is proposed that the
      Court sanctions a compromise or arrangement for the purposes of or in
      connection with the reconstruction of the Company or its amalgamation with
      any other company or companies, the following shall apply:

      7.4.1       in the case of a Conditional Award, subject to Rules 7.6 and
                  8.1, the Award will Vest on the date of such compromise or
                  arrangement being sanctioned by the Court and becoming
                  effective;

      7.4.2       in the case of a Nil Cost Option, subject to Rules 7.6 and
                  8.1, the Award may be exercised conditional on such compromise
                  or arrangement being sanctioned by the Court and becoming
                  effective before the date on which it becomes effective;

      7.4.3       in the case of a Nil Cost Option, to the extent the Award is
                  unexercised it shall lapse conditionally on the compromise or
                  arrangement being sanctioned by the Court and becoming
                  effective; and

                                       10
<PAGE>

      7.4.4       after Vesting, a Participant shall transfer or otherwise deal
                  with the Shares issued to him so as to place him in the same
                  position (so far as possible) as would have been the case if
                  such Shares had been subject to such compromise or
                  arrangement.

7.5   If notice is duly given of a resolution for the voluntary winding-up of
      the Company, the Company shall notify all Participants. Subject to Rule
      7.6 Conditional Awards will Vest and Nil Cost Options will Vest and may be
      exercised in each case conditionally on the resolution being duly passed.
      If the resolution is duly passed all Conditional Awards shall, to the
      extent that they have not Vested, and all Nil Cost Options shall, to the
      extent they have not been exercised, lapse immediately.

7.6   Where Rules 7.1, 7.3, 7.4 and 7.5 apply, unless and to the extent the
      Grantor determines otherwise, a proportion of an Award shall Vest (which
      proportion will reflect the number of months of the Performance Period
      which have elapsed at the date of the relevant event). The Award may only
      Vest having regard to the extent to which any Performance Condition has
      been satisfied at the date of the relevant event.

8.    EXCHANGE OF AWARDS FOLLOWING TAKEOVER, ETC.

8.1   Rules 7.1, 7.3 and 7.4 shall not apply where:

      8.1.1       the events are part of a scheme or arrangement whereby another
                  company (the "Acquiror") obtains Control of the Company;

      8.1.2       immediately after the Acquiror obtains Control, the issued
                  ordinary share capital of the Acquiror is owned substantially
                  by the same persons who were equity shareholders of the
                  Company immediately prior to the Acquiror obtaining Control;
                  and

      8.1.3       the Acquiror agrees to grant New Awards in accordance with
                  Rule 8.2 in consideration for the release of any Awards which
                  have not lapsed.

8.2   If:

      8.2.1       Awards Vest under Rules 7.1, 7.3 or 7.4 and a company obtains
                  Control of the Company; or

      8.2.2       a company obtains Control in circumstances where Rule 8.1
                  applies; or

      8.2.3       a company obtains Control of any Group Member as a result of a
                  demerger,

      any Participant may during the Exchange Period by agreement with the
      relevant company, release any Award which has not lapsed (the "Old Award")
      in consideration of the grant to him of an award (the "New Award") which
      relates to shares in a different company (whether the company which has
      obtained Control of the Company itself or some other company). In the case
      of a demerger, a New Award may be granted in respect of an appropriate
      part of an Old Award.

8.3   Where Rule 8.2 applies, the provisions of the Plan shall for this purpose
      be construed as if:

                                       11
<PAGE>

      8.3.1       the New Award were an award granted under the Plan at the same
                  time as the Old Award;

      8.3.2       except for the purpose of the definition of "Participating
                  Company" in Rule 1.1 and the reference to the "Company" in
                  Rule 18.2, as if the reference to The BOC Group plc in the
                  definition of the "Company" in Rule 1.1 were a reference to
                  the different company mentioned in Rule 8.2;

      8.3.3       subject to Rule 8.3.4 any Performance Condition will not
                  apply; and

      8.3.4       where Rule 8.1 applies the Performance Condition will apply
                  either in its original form or an appropriately amended form,
                  unless the Grantor determines that it should be disapplied in
                  whole or in part.

9.    REVIEW OF THE PERFORMANCE CONDITION AND VESTING OF AWARDS

9.1   As soon as reasonably practicable after the end of any Performance Period
      in relation to an Award, the Grantor will review the applicable
      Performance Condition and for each Award the Grantor shall determine the
      extent to which Awards Vest.

10.   SATISFYING CONDITIONAL AWARDS

10.1  Subject to Rules 2.3, 2.4, 12 and 13, after a Conditional Award has
      Vested, the Vested Shares (or where Rule 2.10 applies, cash or other
      assets) shall be transferred or allocated to the Participant within 30
      days of the Vesting Date.

10.2  If the Participant's employment with any Group Member terminates after the
      end of the Performance Period but before the transfer of Shares pursuant
      to Rule 10.1, other than by reason of death or retirement, no Shares (cash
      or other assets) will be transferred to him, unless the Grantor determines
      otherwise.

10.3  The Participant has no rights attaching to any Shares (or where Rule 2.10
      applies, cash or other assets), whether or not Vested, before they are
      transferred or allocated to him.

11.   EXERCISING AND SATISFYING NIL COST OPTIONS

11.1  Subject to Rules 2.3, 2.4, 12 and 13, a Nil Cost Option may be exercised
      after it has Vested, but only to the extent it has Vested.

11.2  Subject to Rules 2.3, 2.4, 12 and 13, a Nil Cost Option may be exercised
      by delivering to the Company Secretary (as agent for the Grantor) or such
      other person as the Grantor determines:

      11.2.1      an award certificate covering at least all the Shares (cash or
                  other assets) over which the Nil Cost Option is then to be
                  exercised; and

      11.2.2      a notice of exercise in the prescribed form duly completed and
                  signed by the Participant (or his duly authorised agent);

                                       12
<PAGE>

      provided that the Grantor may from time to time prescribe a different
      exercise procedure.

11.3  Subject to Rule 12, the Exercise Date of a Nil Cost Option shall be the
      receipt of all items referred to in Rule 11.2.

11.4  Subject to Rules 2.3, 2.4, 12 and 13, the Grantor shall transfer or allot
      Shares (or other assets) to the Participant pursuant to the exercise of a
      Nil Cost Option within 30 days following the Exercise Date.

12.   TAX LIABILITY

      The Company, any Participating Company, any Group Members, any employing
      company or the Trustees may withhold any amount and make any such
      arrangements as it considers appropriate to meet any liability to taxation
      or social security contributions in respect of Awards (including their
      grant and Vesting). These arrangements may include the sale of any Shares
      (or other assets) on behalf of a Participant or the reduction of the
      number of Shares (cash or other assets) receivable by the Participant.

13.   CASH

      Instead of transferring or allotting Shares (or other assets) on Vesting
      or exercise of an Award, the Grantor may in its discretion elect to
      satisfy such Award by a cash payment. If this happens:

13.1  the Participant shall be entitled to a cash payment equal to the aggregate
      Market Value of those Shares (or market value of the assets) over which
      the Nil Cost Option was exercised at the Exercise Date or in respect of
      which the Conditional Award has Vested, such payment to be made, subject
      to Rule 10.2 within 30 days of the Exercise Date or Vesting Date (as
      appropriate);

13.2  the Participant shall have no rights to the issue or transfer of, and the
      Grantor shall be under no obligation to procure the issue or transfer of,
      any Shares (or other assets) pursuant to any of the provisions of this
      Plan; and

13.3  any Participating Company shall be entitled to deduct from and or withhold
      from any payment in respect of any payment made under this Rule 13 any
      amount to meet any liability to taxation or social security contributions.

14.   ISSUE OR TRANSFER OF SHARES

14.1  The Company shall procure that sufficient Shares are available to transfer
      or allot to satisfy all outstanding Awards over Shares.

14.2  Shares issued or transferred pursuant to the Plan will rank pari passu in
      all respects with the Shares then in issue, except that they shall not
      rank for any right attaching to Shares by reference to a record date
      preceding the effective date of exercise.

14.3  If the Shares are listed on the London Stock Exchange, the Company shall
      apply for listing of any Shares issued pursuant to the Plan (and not
      already listed) as soon as practicable after their allotment.

                                       13
<PAGE>

14.4  Any Shares acquired on the Vesting of Awards will be subject to the
      articles of association of the Company from time to time.

15.   ADJUSTMENTS

15.1  The number of Shares over which an Award is made and the Performance
      Condition (and where a Nil Cost Option has been exercised but no Shares
      have been allotted or transferred the number of Shares which may be so
      allotted or transferred) shall be adjusted in such manner as the Grantor
      shall determine following any capitalisation issue, any offer or
      invitation made by way of rights, subdivision, consolidation, reduction or
      other variation in the share capital of the Company, demerger, dividend in
      specie, super dividend or other corporate event which in the reasonable
      opinion of the Grantor justifies such an adjustment.

15.2  The Grantor may take such steps as it may consider necessary to notify
      Participants of any adjustment made under this Rule 15 and to call in,
      cancel, endorse, issue or reissue any certificate consequent upon such
      adjustment.

16.   RIGHTS OF PARTICIPANTS

16.1  Unless and to the extent the Grantor determines otherwise prior to the
      Award Date, a Participant shall have no rights of ownership (beneficial or
      otherwise) in respect of Shares or other assets comprised in any
      Conditional Award, until it has Vested and in respect of Shares or other
      assets comprised in a Nil Cost Option until it is exercised.

16.2  Unless and to the extent the Grantor determines otherwise prior to the
      Award Date, a Participant shall have no rights to any dividends or other
      distributions or to exercise any voting or other rights attaching to
      Shares comprised in any Award prior to the date on which such Award Vests
      (in the case of a Conditional Award) or such Award has been exercised (in
      the case of a Nil Cost Option).

17.   ADMINISTRATION

17.1  The Grantor shall administer the Plan. The Grantor shall have full
      authority, consistent with the Plan, to interpret and construe any
      provision of the Plan and to adopt such regulations for administering the
      Plan as it may deem necessary or appropriate. The Grantor's decision shall
      be final and binding on all parties.

17.2  Any notice or other communication in connection with the Plan may be given
      by personal delivery or by sending the same by electronic means or 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 an officer or
      employee of a Group Member, either to his last known address or to the
      address of the place of business at which he performs the whole or
      substantially the whole of the duties of his office or employment, and
      where a notice or other communication is given by post, it shall be deemed
      to have been received 72 hours after it was put into the post properly
      addressed and stamped, and if by electronic means when the sender receives
      an electronic confirmation of delivery or if not available 24 hours after
      sending of the notice.

17.3  The Company may send to Participants copies of any notice or document
      normally sent by the Company to the holders of Shares.

                                       14
<PAGE>

17.4  In the case of the partial exercise of any Nil Cost Option, the Grantor
      may in consequence call in, endorse or cancel and re-issue, as it
      considers appropriate, any certificate for the balance of the Shares over
      which the Award was granted.

17.5  If any award certificate is worn out, defaced or lost, it may be replaced
      on such evidence being provided as the Grantor may require.

17.6  The Participating Companies shall bear the costs of administering the Plan
      in such proportions as may be determined by the Company.

17.7  The Company and any Subsidiary of the Company may provide money to the
      Trustees or any other person to enable them or him to acquire Shares to be
      held for the purpose 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. In addition, the Company may require any Subsidiary of
      the Company to enter into such other agreement or agreements to require
      such Subsidiary of the Company to reimburse the Company for any other
      amounts paid by the Company under the Plan, directly or indirectly in
      respect of such Subsidiary's employees.

18.   CHANGING THE PLAN

18.1  Subject to the rest of this Rule 18, the Board may at any time alter or
      add to all or any of the provisions of the Plan in any respect (but only
      with the prior consent of the Trustees, if there are subsisting Awards
      which they have granted or agreed to satisfy which will be affected by the
      alteration or addition).

18.2  No alteration, deletion or addition to the material advantage of Eligible
      Employees or Participants shall be made under Rule 18.1 without the prior
      approval by ordinary resolution of the members of the Company in general
      meeting where such alteration or addition relates to:

      18.2.1      the definition of "Eligible Employee";

      18.2.2      the limits in Rules 3 and 4;

      18.2.3      the rights of Participants under Rule 15; and

      18.2.4      the terms of this Rule 18.2,

      unless the alteration, deletion or addition is minor and to benefit the
      administration of the Plan or is necessary or desirable in order to take
      account of a change in legislation or to obtain or maintain favourable
      tax, exchange control or regulatory treatment for any Group Member, any
      Participant or Eligible Employee.

18.3  No alteration, deletion or addition shall be made under Rule 18.1 which
      would abrogate or adversely affect the subsisting rights of a Participant
      unless it is made:

      18.3.1      with the consent in writing of such number of Participants as
                  hold Awards under the Plan to acquire 75 per cent of the
                  affected Shares which could be issued or transferred if all
                  such Awards granted and subsisting under the Plan had Vested
                  in full; or

                                       15
<PAGE>

      18.3.2      by a resolution at a meeting of Participants passed by not
                  less than 75 per cent of the Participants who attend and vote
                  either in person or by proxy,

      and for the purpose of this Rule 18.3 the provisions of the articles of
      association of the Company from time to time relating to shareholder
      meetings shall apply mutatis mutandis.

18.4  No alteration shall be made to the Plan, if following the alteration the
      Plan would cease to be an Employees' Share Scheme .

18.5  Notwithstanding any other provision of the Plan other than Rule 18.1, the
      Board may, in respect of Awards granted to Participants who will be
      subject to taxation outside the United Kingdom on their remuneration,
      amend, or add to the provisions of the Plan or to the terms of Awards in
      each case as it considers necessary or desirable to take account of or to
      mitigate or to comply with relevant taxation, securities or exchange
      control laws provided that the terms of Awards granted to such
      Participants are not overall materially more favourable than the terms of
      Awards granted to other Participants.

18.6  As soon as reasonably practicable, the Grantor shall give notice of any
      alteration or addition under Rule 18 to any Participant materially
      affected.

18.7  No alteration, deletion or addition under Rule 18 shall require the
      consent of any person unless expressly provided for in these Rules.

19.   LEGAL ENTITLEMENT

19.1  Nothing in the Plan, nor in any instrument executed pursuant to it shall
      confer on any person any right to continue in employment, nor will it
      affect the right of any Group Member to terminate the employment of any
      person without liability at any time with or without cause, nor will it
      impose upon the Board or any other person any duty or liability whatsoever
      (whether in contract, tort, or otherwise howsoever) in connection with:

      19.1.1      the lapsing of any Award pursuant to the Plan;

      19.1.2      the failure or refusal to exercise any discretion under the
                  Plan; and/or

      19.1.3      any Participant ceasing to hold office or employment for any
                  reason whatever.

19.2  Awards shall not (except as may be required by taxation law) form part of
      the emoluments of individuals or count as wages or remuneration for
      pension or other purposes.

19.3  Any person who ceases to be an officer or employee with any Group Member
      as a result of the termination of his employment for any reason and
      however that termination occurs, whether lawfully or otherwise, shall not
      be entitled and shall be deemed irrevocably to have waived any entitlement
      by way of damages for dismissal or by way of compensation for loss of
      office or employment or otherwise to any sum, damages or other benefits to
      compensate that person for the loss or alteration of any rights, benefits
      or expectations in relation to any Award, the Plan or any instrument
      executed pursuant to it.

19.4  Nothing in the Plan shall be deemed to give any employee of any
      Participating Company any right to participate in the Plan.

                                       16
<PAGE>

20.   GENERAL

20.1  The Plan shall terminate upon the tenth anniversary of its adoption by the
      Company or at an earlier time by the passing of a resolution by the Board
      or an ordinary resolution of the Company in general meeting. Termination
      of the Plan will be without prejudice to the subsisting rights of
      Participants.

20.2  These Rules shall be governed by and construed in accordance with the laws
      of England. Any person referred to in this Plan submits to the exclusive
      jurisdiction of the English courts.

                                       17
<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]