Document:

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                                                                   EXHIBIT 10.35

                                        ---------------------------------
                                                 RULES OF THE

                                                VODAFONE GROUP

                                          1998 EXECUTIVE SHARE OPTION

                                                    SCHEME
                                        ---------------------------------

                           July 1998 - Final Version
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                                  RULES OF THE
                                 VODAFONE GROUP
                       1998 EXECUTIVE SHARE OPTION SCHEME

l     DEFINITIONS

      In these Rules:

      1.1   the following words and expressions have the following meanings:

             "Act"                    the Income and Corporation Taxes Act
                                      1988;

             "Announcement Date"      a date on which the Company makes
                                      the preliminary announcement to the London
                                      Stock Exchange of its final results, or
                                      the announcement to the London Stock
                                      Exchange of its interim results, for any
                                      financial accounting period;

             "Associated Company"     any company which is an associated company
                                      of the Company within the meaning that the
                                      expression bears in Section 416 of the
                                      Act;

             "Company"                Vodafone Group Plc;

             "Control"                the meaning given to that expression
                                      in Section 840 of the Act;

             "Date of Grant"          the date on which the Directors grant
                                      an Option in accordance with the terms
                                      of Rule 2.1;

             "Directors"              the board of directors for the time being
                                      of the Company or a duly authorized
                                      committee thereof consisting wholly or
                                      mainly of non-executive directors;

             "Eligible Employee"      any person (including a full-time
                                      director) who at any Date of Grant is
                                      in employment with any Participating
                                      Company provided that such person has
                                      not less than two years employment to
                                      complete before Retirement. For the
                                      purposes of this definition "full-time"
                                      shall mean devoting substantially the
                                      whole of his working time to the
                                      employment and having a normal

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                                      contractual working week of 25 hours or
                                      more excluding meal breaks;

             "Employment"             employment by the Company and/or any
                                      company under the Control of the Company
                                      or Associated Company and "ceasing to be
                                      in Employment" shall be construed as
                                      ceasing to be employed by all such
                                      companies;

             "Equity Share Capital"   the meaning ascribed to that expression by
                                      Section 744 of the Companies Act 1985;

             "Group"                  the Company and all its Subsidiaries;

             "London Stock Exchange"  the London Stock Exchange Limited;

             "Option"                 the right granted or to be granted on
                                      any particular Date of Grant to
                                      subscribe for or acquire Shares in
                                      accordance with the Rules;

             "Option Certificate"     a certificate evidencing an Option as
                                      referred to in Rule 2.3;

             "Option Price"           the price for the acquisition of a
                                      Share comprised in any Option which
                                      shall be determined by the Directors
                                      and shall (subject to the provisions
                                      of Rule 6 and Rule 7.4) be not less
                                      than the highest of:

                                      (a)   the average of the middle market
                                            quotations of a Share on the 5
                                            dealing days last preceding the Date
                                            of Grant as derived from the London
                                            Stock Exchange Daily Official List;

                                      (b)   the nominal value of a Share, if
                                            higher, in the case of an Option
                                            which may be satisfied on exercise
                                            by the issue of new Shares; and

                                      (c)   the market value of a Share
                                            calculated in accordance with a
                                            formula agreed with the Inland
                                            Revenue;

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             "Participant"            any person (including, where the
                                      context  permits, the legal personal
                                      representatives of such person) who
                                      holds an Option;

             "Participating Company"  any company within the Group which the
                                      Directors have determined shall be a
                                      Participating Company for the purposes
                                      of the Scheme;

             "Record Date"            in relation to any particular payment of
                                      dividend or other right attaching to
                                      Shares the date on which any shareholder
                                      must duly appear on the register of
                                      members of the Company as such in order to
                                      be entitled to such dividend or other
                                      right;

             "Redundancy"             redundancy within the meaning of the
                                      Employment Rights Act 1996;

             "Retirement"             retirement on or after reaching age 60 or
                                      any other age at which a Participant is
                                      bound to retire in accordance with the
                                      terms of his contract of employment;

             "Rules"                  these rules together with any amendment
                                      thereto effected in accordance with Rule
                                      10;

             "Scheme"                 this scheme, being the Vodafone Group 1998
                                      Executive Share Option Scheme as approved
                                      by the Company in general meeting on 21
                                      July 1998 and as amended from time to
                                      time;

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

             "Subsidiary"             a company which is both under the Control
                                      of the Company and a subsidiary of the
                                      Company within the meaning of Section 736
                                      of the Companies Act 1985.

      1.2    Where the context so admits

             1.2.1    words importing the singular shall include the plural and
                      vice versa and words importing the masculine shall include
                      the feminine; and

             1.2.2    any reference to a statute (or a particular Chapter, Part
                      or Section thereof) shall mean and include any statutory
                      modification or

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                      re-enactment thereof for the time being in force and any
                      regulations made thereunder,

2     GRANT OF OPTIONS

      2.1    Subject to the provisions of Rule 3, the Directors may, by
             resolution, grant Options to such Eligible Employees as they at
             their absolute discretion think fit but only during the periods of
             six weeks following:

             2.1.1    the approval of the Scheme by shareholders in general
                      meeting; and

             2.1.2    an Announcement Date

             and at other times under exceptional circumstances provided that no
             Option may be granted at any time when there is an embargo on
             dealing in Shares by virtue of the London Stock Exchange Model Code
             for Securities Transactions by Directors of Listed Companies or any
             code adopted by the Company based on the Model Code or of the
             provisions of any legislation for the time being in force. If the
             Directors cannot grant Options due to any such embargo the
             Directors may grant Options within six weeks after the embargo has
             been lifted. The Directors may not grant Options on a day when any
             dealing day used to calculate the Option Price falls in a period
             when there is such an embargo.

      2.2    Such Options may be granted so that their exercise shall be subject
             to such objective conditions (additional to the conditions
             expressed in the Rules and not inconsistent with the provisions of
             the Scheme) as the Directors may think fit. Any such additional
             conditions may be waived or amended if an event happens which
             causes the Directors to consider that such additional conditions
             could not fairly or reasonably be met, provided that any amended
             condition should be no more difficult and no less difficult to
             satisfy than the original condition. Any conditions imposed shall,
             unless the Directors determine otherwise at the Date of Grant,
             automatically be waived in the event of an exchange of Options
             pursuant to Rule 7.4 or where rules 4.1.2, 4.1.3, 4.1.4 and 4.1.5
             apply or in accordance with the terms of any conditions.

      2.3    An Option shall be granted by way of a deed and the Participants
             will be sent an Option Certificate or statement in such form as the
             Director shall decide. The Option Certificate or statement shall
             specify the number of Shares comprised in the Option, the Date of
             Grant, the Option Price and any conditions relating to the exercise
             of Options determined by the Directors under Rule 2.2 and shall be
             otherwise in such form (not inconsistent with the provisions of the
             Scheme) as the Directors may from time to time determine. If any
             such certificate shall be worn out, defaced, destroyed or lost, it
             may be renewed on such evidence being provided and on such terms as
             the Directors may reasonably require.

      2.4    Any Eligible Employee to whom an Option is granted may by notice
             given in writing within 30 days after its Date of Grant renounce
             his rights thereunder

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             and in such case the Option shall be deemed never to have been
             granted hereunder.

      2.5    No consideration shall be payable by an Eligible Employee for the
             grant of an Option,

      2.6    Notwithstanding any provision of any other of these Rules
             whatsoever:

             2.6.1    the Scheme shall not form part of any contract of
                      employment between the Company, a Subsidiary or any
                      Associated Company and any Participant and it shall not
                      confer on any Participant any legal or equitable rights
                      (other than those constituted by the Options themselves)
                      whatsoever against the Company, a Subsidiary or the
                      Associated Company directly or indirectly or give rise to
                      any cause of action at law or in equity against the
                      Company, a Subsidiary or any Associated Company;

             2.6.2    the benefits to the Participants under the Scheme shall
                      not form part of their wages or remuneration or count as
                      pay or remuneration for pension or other purposes;

             2.6.3    the grant of Options to a Participant is a matter entirely
                      separate from any pension right or entitlement he may have
                      and from his terms or conditions of employment and
                      participation in the Scheme shall in no respect whatever
                      affect his pension rights or entitlements or terms or
                      conditions of employment and in particular (but without
                      limiting the generality of the foregoing) any Participant
                      who ceases to be an employee of any company in the Group
                      shall not be entitled to any compensation for any loss of
                      any right or benefit or prospective right or benefit under
                      the Scheme which he might otherwise have enjoyed whether
                      such compensation is claimed by way of damages for
                      wrongful dismissal or other breach of contract or by way
                      of compensation for loss of office or otherwise howsoever
                      and notwithstanding that he may have been dismissed
                      wrongfully or unfairly (within the meaning of the
                      Employment Rights Act 1996).

      2.7    An Option shall be personal to the Participant and shall not be
             assignable and any purported assignment, transfer, charge, disposal
             or dealing with the rights or interests of the Participant under
             the Scheme shall render the Option void. However, on the death of a
             Participant, an Option shall be capable of being exercised by his
             legal personal representatives in accordance with the provisions of
             Rule 4.

 3    LIMITATIONS

      3.1    The number of Shares which may be allocated under the Scheme on any
             day will not exceed 10% of the ordinary share capital of the
             Company in issue immediately before that day, when added to the
             total number of Shares which have been allocated in the previous
             ten years under the Scheme and any other employee share scheme
             adopted by the Company.

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      3.2    The number of Shares which may be allocated under the Scheme on any
             day will not exceed 5% of the ordinary share capital of the Company
             in issue immediately prior to that day, when added to the total
             number of Shares which have been allocated in the previous five
             years under the Scheme and any other employee share scheme adopted
             by the Company.

      3.3    The number of Shares which may be allocated under the Scheme on any
             day will not exceed 5% of the ordinary share capital of the Company
             in issue immediately prior to that day, when added to the total
             number of Shares which have been allocated in the previous ten
             years under the Scheme and any other executive share scheme adopted
             by the Company.

      3.4    The number of Shares which may be allocated under the Scheme on any
             day in the four years commencing on 21 July 1998 will not exceed
             2.5% of the ordinary share capital of the Company in issue
             immediately prior to that day when added to the total number of
             Shares which have been allocated under the Scheme and any other
             executive share scheme adopted by the Company.

      3.5    Where the right to acquire Shares was released or lapsed without
             being exercised the Shares concerned will be ignored when
             calculating the limits in this Rule.

      3.6    Allocate means in relation to any share option scheme the placing
             of unissued shares under option and in relation to other types of
             employee share scheme the issue and allotment of shares.

      3.7    For the avoidance of doubt Shares issued to a trustee or trustees
             of a trust established for the benefit of those persons named in
             Section 743 Companies Act 1985 established by the Company or any
             Subsidiary for the purposes of the Scheme shall be included in the
             limits set out in Rules 3.1 to 3.6 inclusive.

      3.8    The number of Shares over which an Option may be granted to any
             Eligible Employee on any Date of Grant shall be limited arid take
             effect so that the aggregate market values at the relevant dates
             of grant of Shares over which options have been granted and not
             exercised or lapsed during the period of ten years ending on the
             relevant Date of Grant under the Scheme and under any other
             employee share option scheme operated by the Company or by any
             Associated Company (other than a savings related share option
             scheme) shall not exceed four times the aggregate of the Eligible
             Employee's annual basic rate of pay as at the relevant Date of
             Grant and any fluctuating emoluments paid to him during the
             preceding twelve months provided that Options may not be granted to
             replace Options which have previously been exercised unless, over
             the two to three years preceding the re-grant, the Directors are
             satisfied that the Company has achieved a sustained improvement in
             performance.

      3.9    No Option may be granted later than ten years after this Scheme is
             adopted by the Company in general meeting.

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4     EXERCISE AND LAPSE OF OPTIONS

      4.1    Subject to Rule 4.2 and to any conditions attached to the Option
             pursuant to Rule 2.2, an Option shall be capable of being exercised
             in accordance with the provisions of Rule 5 following the earliest
             of:

             4.1.1    the expiry of three years from its Date of Grant;

             4.1.2    the Participant ceasing to be in Employment by reason of
                      his death, injury, disability, Retirement or Redundancy;

             4.1.3    the Participant ceasing to be in Employment by reason that
                      his Employment is in a company of which the Company ceases
                      to have Control, or it relates to a business or part of a
                      business which is transferred to a person who is neither
                      an Associated Company nor a company of which the Company
                      has Control;

             4.1.4    the date on which an Option becomes exercisable pursuant
                      to Rule 7 or Rule 8; or

             4.1.5    the Participant ceasing to be in Employment for any reason
                      other than those reasons comprised in Rule 4.1.2 or Rule
                      4.1.3 if and to the extent that the Directors in their
                      absolute discretion so determine within [30] days of such
                      cessation.

      4.2    An Option shall lapse (to the extent that it has not previously
             been exercised) upon the earliest of the following:

             4.2.1    the expiry of ten years from its Date of Grant (or such
                      shorter period as the Directors shall determine at the
                      Date of Grant);

             4.2.2    in the case of a Participant who ceases to be in
                      Employment by reason of any instance specified in Rule
                      4.1.2 or Rule 4.1.3, the expiry of one year from the date
                      of cessation of Employment;

             4.2.3    in the case of a Participant who ceases to be in
                      Employment by reason of Retirement, the expiry of the
                      later of one year from the date of cessation of Employment
                      and three and a half years from the Date of Grant;

             4.2.4    in the case of a Participant who ceases to be in
                      Employment otherwise than by reason of Retirement or any
                      instance specified in Rule 4.1.2 or Rule 4.1.3, either the
                      date of cessation of Employment or such other date as the
                      Directors shall decide being a date not after one year
                      from the date of cessation of Employment;

             4.2.5    the date on which an Option lapses pursuant to Rule 7 or
                      Rule 8; or

             4.2.6    the date on which a Participant is adjudicated bankrupt or
                      enters into any arrangement or compromise with his
                      creditors.

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5     MANNER OF EXERCISE OF OPTIONS

      5.1    In order to exercise an Option the Participant shall give notice in
             writing to the Company in a form prescribed by the Directors
             stating that he wishes to exercise the Option and the number of
             Shares in respect of which he wishes it to be exercised. Such
             notice shall be accompanied by the relevant Option Certificate and
             the aggregate Option Prices of those Shares and either:

             5.1.1    sufficient funds to pay any taxes which any company is
                      required to pay, withhold or deduct as a result of the
                      exercise; or

             5.1.2    an irrevocable authority to allot or transfer to a
                      nominee, sufficient Shares to pay any taxes which any
                      company is required to pay, withhold or deduct as a result
                      of the exercise and an irrevocable authority for the
                      nominee to sell such Shares and pay the relevant amount to
                      such company

             (other than Employer's Class 1 National Insurance Contributions).
             The notice shall only be valid if the Option is then capable of
             being exercised.

      5.2    Within thirty days after receipt by the Company of the valid notice
             referred to in Rule 5.1, the Option Certificate, the aggregate
             Option Prices of the relevant Shares and the funds or authority
             referred to in Rule 5.1, the Company shall allot or procure the
             transfer of the appropriate number of Shares and the allottee or
             transferee shall be entered on the register of members of the
             Company in respect of those Shares. The said Shares shall rank in
             full for all dividends and other rights to which a right arises by
             reference to a Record Date falling on or after the date on which
             the allottee or transferee is entered on the register of members of
             the Company and shall in all other respects rank pari passu with
             the other issued Shares of the same class and shall be acquired
             subject to the Company's articles of association.

      5.3    An Option may be exercised in whole or in part and, subject to Rule
             4, exercise in part shall not preclude further exercise. If an
             Option remains capable of further exercise the Company shall at the
             Directors' discretion either return the Option Certificate to the
             Participant endorsed to show the number of Shares in respect of
             which it remains capable of exercise or issue to him a new
             certificate which shall contain all the information which would
             have been contained in such endorsed certificate.

      5.4    The Company shall ensure that sufficient Shares are always
             available to satisfy in full all outstanding Options.

      5.5    On the allotment of Shares following the exercise of any Option the
             Company shall, as soon as is practicable, apply to the London Stock
             Exchange for the relevant Shares to be admitted to the Official
             List. Alternatively, the Company may arrange for a block listing of
             the Shares.

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6     VARIATION OF SHARE CAPITAL

      In the event of any variation of share capital by way of a capitalisation
      or rights issue or rights offer or any consolidation, sub-division or
      reduction of capital by the Company or any other variation, the number of
      Shares subject to any Option and the Option Price for each of those Shares
      shall be adjusted in such manner as the Directors shall consider to be
      fair and reasonable (including retrospective adjustments) (except in the
      case of a capitalisation issue) provided that, in the case of an Option
      which may be satisfied on exercise by the issue of new Shares, the Option
      Price for a Share is not reduced below its nominal value unless the
      Directors shall be authorised to capitalise from the reserves of the
      Company a sum equal to the amount by which the nominal value of each Share
      in respect of which the Option is exercised exceeds the relevant Option
      Price and to apply such sum in paying up such amount on such Share, and so
      that on the exercise of any Option in respect of which such a reduction
      shall have been made the Directors shall capitalise such sum (if any) and
      apply the same in paying up such amount as aforesaid.

7     TAKEOVER OR RECONSTRUCTION

      7.1    If any person obtains Control of the Company as a result of making;

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

             7.1.2    a general offer to acquire ail the Shares in the Company
                      which are of the same class as the Shares over which
                      Options have been granted

             then, subject to Rule 4.2, a Participant will be entitled to
             exercise his Option within six months following the later of the
             date on which Control of the Company passes and the date on which
             the offer becomes unconditional.

      7.2    1f any person becomes bound or entitled to acquire shares in the
             Company under Sections 428 to 430F of the Companies Act 1985 then,
             subject to Rule 4.2, a Participant will be entitled to exercise his
             Option at any time when that person remains so bound or entitled,
             on the expiry of which period all outstanding Options shall lapse.

      7.3    If under Section 425 of the Companies Act 1985 the Court sanctions
             a compromise or arrangement proposed for the purposes of or in
             connection with a scheme for the reconstruction of the Company or
             its amalgamation with any other company or companies then, subject
             to Rule 4.2, a Participant will be entitled to exercise his Options
             within six months of the Court sanctioning the compromise or
             arrangement, on the expiry of which period all outstanding Options
             shall lapse.

      7.4    If as a result of the events specified in Rule 7.1 or Rule 7.3 any
             company ("the Acquiring Company") has obtained Control of the
             Company or has become bound or entitled as mentioned in Rule 7.2, a
             Participant may, with the agreement of the Acquiring Company and
             during the appropriate period as

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              defined in paragraph 15(2) of Schedule 9 to the Act, release all
              or part of his rights under the Scheme (the "Old Rights") in
              consideration of the grant to him of rights (the "New Rights")
              which satisfy the conditions of paragraph 15(3) of the said
              Schedule, and the New Rights shall be deemed to have been granted
              at the time when the Old Rights were granted.

      7.5    In the application of the Rules to the New Rights, the term
             "Company" shall in Rules 4, 5, 6, 7, 8, 9 and 10.3 be taken as
             referring to the company over whose share capital the new rights
             are granted, and the other expressions which are defined in Rule I
             hereof and occur in those Rules shall be interpreted as though the
             word "Company" were so defined.

      7.6    For the purposes of this Rule 7 (other than Rule 7.4) a person
             shall be deemed to have obtained Control of a company if he and
             others acting in concert with him have together obtained Control of
             it.

      7.7    The exercise of an Option pursuant to the preceding provisions of
             this Rule shall be subject to the provisions of Rule 5.

8     VOLUNTARY WINDING-UP

      If a notice of a meeting to consider a resolution for the voluntary
      winding-up of the Company shall be given the Directors shall give notice
      thereof to all Participants and thereupon each Participant shall (subject
      to Rule 4.2) forthwith and until the date of the resolution for
      commencement of the winding up be entitled to exercise any Option held by
      him in the manner provided in Rule 5 but the exercise of any such Option
      as aforesaid shall be conditional upon the said resolution being duly
      passed before the lapse of such Option pursuant to Rule 4.2. Subject as
      aforesaid all Options shall lapse immediately after the commencement of a
      winding-up of the Company.

9     DEMERGERS AND OTHER SIGNIFICANT DISTRIBUTIONS

      Where the Directors become aware that the Company is or is expected to be
      affected by any demerger, divided in specie, super dividend or other
      transaction which, in the opinion of the Directors, would affect the
      current or future value of any Option then the Directors may, acting
      fairly, reasonably, and objectively, in their discretion allow some or all
      Options to be exerciseable, The Directors will specify the period of
      exercise of such Options and whether the Options will lapse at the end of
      the period.

 10   ADMINISTRATION AND AMENDMENT

      10.1   The Scheme may be amended by resolution of the Directors provided
             that no amendment which would be to the advantage of Participants
             may be made without prior approval of the Company in general
             meeting to the provisions relating to;

             10.1.1   eligibility;

             10.1.2   overall limits-,

             10.1.3   maximum individual entitlement;

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             10.1.4   the grant and exercise of Options and the adjustment
                      thereof following a variation of share capital

             except for minor amendments to benefit the administration of the
             Scheme, to take account of a change in legislation or to obtain or
             maintain favourable tax, exchange control or regulatory treatment
             for present or future Participants or the Group.

      10.2   Subject as herein otherwise expressly provided the Directors'
             decision on any matter concerning the Scheme shall be final and
             binding,

      10.3   All notices under the Scheme shall be in writing and, if to the
             Company, shall be either delivered in person to the Company
             Secretary or sent to the Company's registered office for the time
             being (or to such other address as the Directors may from time to
             time specify) and, if to a Participant, shall be delivered
             personally to him at his place of work or sent by first-class post
             to the Participant at the address which he shall give in writing
             to the Company for this purpose, or, failing any such address, to
             his last-known place of abode. All notices to the Company, however
             sent, shall be deemed to be served only upon actual receipt thereof
             by the Company Secretary or (as the case may be) at the appropriate
             address as determined above. Notices to the Participant shall, if
             delivered personally to him at his place of work, be deemed to be
             served upon such delivery and, if sent by first-class post to the
             appropriate address as determined above, shall be deemed to be
             served forty-eight hours after the posting to such address of a
             properly addressed and prepaid envelope containing such notice.

      10.4   The Scheme and Options granted under it shall be governed by and
             construed in accordance with English Law and all disputes shall be
             referred for resolution to the courts of England.

11    TERMINATION

      The Directors may at any time resolve to cease making further grants of
      Options under the Scheme but in such event the subsisting rights of
      Participants will not thereby be affected.

                                       11<PAGE>

                                                                   EXHIBIT 10.36

                        ---------------------------------

                                THE RULES OF THE
                               VODAFONE GROUP PLC
                              SHARE OPTION SCHEME

                        ---------------------------------

Approved by the Company 14 September 1988
Amended May 1989, October 1991
May 1995, May 1997, April 1998 and June 1998
<PAGE>

                                  RULES OF THE
                               VODAFONE GROUP PLC
                              SHARE OPTION SCHEME

DEFINITIONS

1.   In these Rules:

     (i)  the following words and expressions have the following meanings:-

          "Act"                         the Income and Corporation Taxes Act
                                        1988;

          "Auditors"                    the auditors for the time being of the
                                        Company;

          "Company"                     Vodafone Group Public Limited Company;

          "Control"                     the meaning given to the expression in
                                        Section 840 of the Act;

          "Date of Grant"               the date on which the Directors grant an
                                        Option in accordance with the terms of
                                        Rule 2;

          "Directors"                   the board of directors for the time
                                        being of the Company or a duly
                                        authorised committee thereof;

          "Eligible Employee"           at any Date of Grant any director who is
                                        in fulltime Employment and any other
                                        person who is in Employment provided
                                        that such person has not less than two
                                        years' Employment to complete before
                                        Retirement. For the purposes of this
                                        definition "full-time" shall mean
                                        devoting substantially the whole of his
                                        working week to the Employment and
                                        having a normal contractual working week
                                        of 25 hours or more;

          "Employment"                  employment by the Company and/or any
                                        Subsidiary and "ceasing to be
                                        in Employment" shall be construed as

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                                        ceasing to be employed by all such
                                        companies;

          "Equity Share Capital"        the meaning ascribed to that expression
                                        by Section 744 of the Companies Act
                                        1985;

          "Financial Year"              the meaning ascribed to that expression
                                        by Section 742 of the Companies Act
                                        1985;

          "Group"                       the Company and all its Subsidiaries;

          "Market Value"                an amount equal to the middle market
                                        quotation of a Share on the dealing day
                                        last preceding the relevant Date of
                                        Grant as derived from The Stock Exchange
                                        Daily Official List or, if the Shares
                                        are not listed in the Stock Exchange
                                        Daily Official List on the dealing day
                                        immediately preceding the relevant Date
                                        of Grant, the market value of a Share as
                                        determined by the Directors in agreement
                                        with the Auditors;

          "Option"                      the right granted or to be granted on
                                        any particular Date of Grant to acquire
                                        Shares in accordance with the Rules;

          "Option Certificate"          a certificate evidencing an Option as
                                        referred to in Rule 2(ii);

          "Option Price"                the price for the acquisition of a Share
                                        comprised in any Option which shall
                                        (subject to the provisions of Rule 6 and
                                        Rule 7(iv)) be determined by the
                                        Directors and shall be not less than the
                                        higher of;

                                        (a)  the nominal value of a Share; and

                                        (b)  85 per cent of the Market Value
                                             of a Share;

          "Participant"                 any person (including, where the context
                                        permits, the legal personal
                                        representatives of such person) who
                                        holds an Option;

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          "Participating Company"       the Company and any of its Subsidiaries
                                        which the Directors shall from time to
                                        time determine to be a Participating
                                        Company for the purposes of the Scheme;

          "Record Date"                 in relation to any particular payment of
                                        dividend or other right attaching to
                                        Shares the date on which any shareholder
                                        must duly appear on the register of
                                        members of the Company as such in order
                                        to have the right to receive such
                                        dividend or other right;

          "Redundancy"                  redundancy within the meaning of the
                                        Employment Protection (Consolidation)
                                        Act 1978;

          "Relevant Emoluments"         at any Date of Grant the current annual
                                        rate of emoluments (excluding benefits
                                        in kind) payable to an Eligible Employee
                                        in accordance with his contract of
                                        employment with a member or members of
                                        the Group including any bonuses or
                                        commissions paid or payable to him
                                        during the period of twelve months
                                        preceding the date of Grant and for the
                                        purposes of this definition in the case
                                        of an Eligible Employee whose salary (or
                                        part thereof) is payable other than in
                                        sterling, such salary shall be
                                        translated into sterling at the official
                                        rate of exchange prevailing in London
                                        market at the Date of Grant;

          "Retirement"                  retirement on or after reaching
                                        pensionable age within the meaning of
                                        Schedule 20 to the Social Security Act
                                        1975 or any other age at which a
                                        Participant is bound to retire in
                                        accordance with the terms of his
                                        contract of employment;

          "Rules"                       these rules together with any amendment
                                        thereto effected in accordance with Rule
                                        9;

                                       3
<PAGE>

          "Scheme"                      this scheme, being the Vodafone Group
                                        Plc Share Option Scheme as approved by
                                        the Company in General Meeting on 14th
                                        September 1988 in its present form or as
                                        amended from time to time and
                                        constituted by the Rules;

          "Share"                       an ordinary share in the capital of the
                                        Company;

          "Subsidiary"                  a company which is under the Control of
                                        the Company;

          "The Stock Exchange"          The International Stock Exchange of the
                                        United Kingdom and the Republic of
                                        Ireland Limited;

     (ii)  words importing the singular shall include the plural and VICE VERSA
           and words importing the masculine shall include the feminine; and

     (iii) any reference to a statue (or a particular Chapter Part or Section
           thereof) shall mean and include any statutory modification or
           re-enactment thereof for the time being in force and any regulations
           made thereunder.

GRANT OF OPTIONS

2.   (i)  Subject to the provisions of Rule 3, the Directors may, by
          resolution, grant Options to such Eligible Employees as they in their
          absolute discretion think fit but only during the periods of:

          (a)  three months following the approval of the Scheme by the Company
               in General Meeting

          (b)  six weeks following the preliminary announcement to The Stock
               Exchange of the final results of the Company for any Financial
               Year; and

          (c)  six weeks following the announcement to The Stock Exchange of the
               interim results of the Company for any Financial Year.

          The Directors may attach such conditions to the exercise of the
          options as they, in their absolute discretion, think fit.

          Options will only be granted to Eligible Employees to replace those
          already exercised if the Directors are satisfied that there has been a
          significant improvement in the performance of the Company over the two
          to three years preceding the regrant.

                                       4
<PAGE>

     (ii)  An Option shall be entered into by way of a deed and Participant
           shall be sent an Option Certificate or statement. The Option
           Certificate or statement shall specify the number of Shares comprised
           in the Option, the Date of Grant, the Option Price and, in respect of
           each such Share, any conditions related to the exercise of Options
           specified by the Directors in respect of the grant of the Option
           shall be otherwise in such form (not inconsistent with the provisions
           of the Scheme) as the Directors may from time to time determine. If
           any such certificate or statement shall be worn out, defaced,
           destroyed or lost, it may be renewed on such evidence being provided
           and on such terms as the Directors may reasonably require.

     (iii) Any Eligible Employee to whom an Option is granted may renounce such
           Option in writing with 14 days of its Date of Grant

     (iv)  No consideration shall be payable by an Eligible Employee for an
           Option.

     (v)   It shall be a condition of participation in the Scheme (which is
           voluntary and does not form part of a participant's contract of
           employment) that in the event of the dismissal of a Participant from
           Employment in circumstances which could give rise to a claim for
           wrongful or unfair dismissal he shall not become entitled to any
           damages or compensation or any additional damages or additional
           compensation by reason of any alternation consequent thereupon of his
           rights or expectations under the Scheme.

     (vi)  An Option shall be personal to the Participant and shall not be
           assignable and any purported assignment, transfer, charge, disposal
           or dealing with the rights or interest of the Participant under the
           Scheme shall render the Option void. However, on the death of a
           Participant, an Option shall be capable of being exercised by his
           legal personal representatives in accordance with the provisions of
           Rule 4.

LIMITATIONS

3.   (i)   The maximum number of Shares over which Options may be granted under
           the Scheme on any Date of Grant shall be limited so that the maximum
           number of Shares that may be issued on the exercise of such Options
           when aggregated with the number of Shares issued and the number
           capable of being issued pursuant to options granted during the
           immediately preceding ten year period under the Scheme or under any
           other employee share scheme adopted by the Company shall not exceed
           five per cent of the Equity Share Capital of the Company at the Date
           of Grant subject to an overriding maximum of such number of shares as
           represents ten per cent of the Equity Share Capital of the Company
           immediately following the admission of the same to the Official List
           of The Stock Exchange.

           The number of Shares over which options may be granted in the four
           years commencing on 18 May 1989 under the Scheme and any other share
           option scheme (other than a savings related scheme) operated by the
           Company shall

                                       5
<PAGE>

           be limited so that the number of Shares which have been or may be
           issued on the exercise of such options granted within such period
           shall not exceed two and one half per cent of the Equity Share
           Capital of the Company at the Date of Grant.

     (ii)  The overriding maximum specified in paragraph (i) of this Rule is
           subject to such adjustment as the Auditors shall confirm in writing
           to the Company to be, in their opinion, fair and reasonable to take
           account of any capitalisation issue or rights issue or the
           subdivision, consolidation or reduction of the share capital of the
           Company.

     (iii) The maximum number of Shares over which Options may be granted under
           this Scheme on any Date of Grant may not exceed such number as, after
           adding thereto the number of Shares issued to the trustees of any
           profit sharing employee share scheme or issued pursuant to the
           exercise of options granted during the then current Financial Year
           and the two preceding Financial Years of the Company under the Scheme
           or under any other option scheme adopted by the Company (other than a
           savings related share option scheme), represents 3 per cent of the
           Equity Share Capital of the Company at the Date of Grant.

     (iv)  The number of Shares over which an Option may be granted to any
           Eligible Employee on any Date of Grant shall be subject to the limit
           that the aggregate Market Value of the Shares or shares in Racal
           Electronics Plc which are the subject of options granted and not yet
           exercised under the Scheme and under any other employee share option
           scheme adopted by the Company or Racal Electronics Plc (other than a
           savings related share option scheme) during the period of 10 years
           ending on the Date of Grant shall not exceed four times his Relevant
           Emoluments.

     (v)   No Option may be granted later than ten years after this Scheme is
           adopted in General Meeting.

     (vi)  No Option may be granted at any time when there is an embargo on
           dealing in Shares by virtue of The Stock Exchange Model Code for
           Securities Transactions by Directors of listed companies or of the
           provisions of any legislation for the time being in force.

EXERCISE AND LAPSE OF OPTIONS

4.   (i)   Subject to sub-paragraph (ii) and (iii) of this Rule and to any
           conditions attaching to the Option as specified by the Directors in
           the Option Certificate evidencing the grant of the Option being
           satisfied or waived an Option shall be capable of being exercised in
           accordance with the provisions of Rule 5 following the earliest of:

           (a)   the expiry of three years from its Date of Grant;

                                       6
<PAGE>

           (b)   the Participant ceasing to be in Employment by reason of his
                 death, injury, disability, Redundancy or Retirement;

           (c)   the Participant ceasing to be in Employment other than under
                 4(i)(b) (including, for the avoidance of doubt), by reason of
                 the company by which he is employed ceasing to be a Subsidiary,
                 or by reason of the business in which he is employed ceasing to
                 be owned by the Company or a Subsidiary) if and to the extent
                 that the Directors in their absolute discretion so determine;

           (d)   the date on which an Option becomes exercisable pursuant to
                 Rule 7 or Rule 8.

     (ii)  An Option may not be exercised unless by reference to any three
           consecutive accounting reference periods of the Company which have
           expired after the Date of Grant and prior to the intended date of
           exercise, the Directors are of the opinion that there has been a real
           growth in the earnings per share of the Company provided that the
           provisions of this paragraph (ii) shall not apply in the
           circumstances mentioned in paragraphs (i)(b) or (c) of this Rule or
           in Rules 7 and 8. For the purposes of the paragraph:

           (a)   "real growth" shall mean growth in excess of that shown for the
                 corresponding period by the General Index of Retail Prices
                 compiled and published by the Department of Employment (or, if
                 the same shall not have been published throughout the period,
                 any similar index selected by the Directors);

           (b)   "earnings per share of the Company" shall be as defined in
                 Statement of Standard Accounting Practice No 3;

           (c)   in determining whether the requisite real growth has occurred,
                 the Directors shall take all steps that are in their opinion
                 necessary to ensure that the calculation of the Company's
                 growth in earnings per share is made on a consistent basis and
                 no exercise of Options on the basis of such calculations shall
                 be permitted by the Directors until the Auditors shall have
                 confirmed in writing to the Directors that such calculations
                 are, in the Auditors' opinion, fair and reasonable.

           (d)   the Directors shall notify each Participant as soon as
                 reasonably practicable after his Option becomes exercisable
                 pursuant to this paragraph.

     (iii) An Option shall lapse (to the extent that it has not previously been
           exercised) upon the earliest of the following:

           (a)   the expiry of seven years from its Date of Grant;

           (b)   the expiry of twelve months from the date of a Participant's
                 death;

                                       7
<PAGE>

           (c)   the expiry of twelve months from the date on which the
                 Participant ceases to be in Employment by reason of injury,
                 disability, Redundancy or Retirement provided that in the event
                 of the death of a Participant who has ceased to be in
                 Employment as aforesaid within the said twelve months period
                 the Option shall not lapse until the earlier of the expiry of
                 twelve months from the date of his death and seven years after
                 its date of Grant;

           (d)   the date on which a Participant ceases to be in Employment in
                 circumstances other than those described in (b) and (c) above
                 provided that the Directors may in their absolute discretion
                 permit the Option to lapse at a later date being a date not
                 more than twelve months after the cessation of Employment nor
                 more than seven years after its Date of Grant;

           (e)   the date on which an Option lapses pursuant to Rule 8;

           (f)   the Participant being adjudicated bankrupt.

MANNER OF EXERCISE OF OPTIONS

5.   (i)   In order to exercise an Option the Participant shall give notice in
           writing to the Company in a form prescribed by the Directors stating
           that he wishes to exercise the Option and the number of Shares in
           respect of which he wishes it to be exercised. Such notice shall be
           accompanied by the relevant Option Certificate and the aggregate
           Option Price of the Shares in respect of which the Option is
           exercised. Where the exercise of the Option attracts a liability to
           pay income tax through the PAYE system or the Company has any other
           obligation to withhold tax on the exercise of the Option, the notice
           shall be accompanied by either sufficient funds to pay any taxes
           which the Company is required to pay, withhold or deduct as a result
           of the exercise or an irrevocable authority to allot to a nominee
           sufficient Shares to pay any taxes which the Company is required to
           pay, withhold or deduct as a result of the exercise (other than
           Employer's Class 1 National Insurance Contributions) and an
           irrevocable authority for the nominee to sell such shares and pay the
           relevant amount to the Company.

     (ii)  Within 30 days after receipt by the Company of such notice, Option
           Certificate and payment, the Company shall allot or procure the
           transfer of the Shares in respect of which the Option has been
           exercised. Shares allotted by the Company to satisfy Options,
           directly or indirectly, shall rank in full for all dividends and
           other rights attaching to Shares to which a right arises by reference
           to a Record Date falling on or after the date of allotment and shall
           in all other respects rank pari passu with the other issued Shares of
           the same class.

                                       8
<PAGE>

     (iii) An Option may be exercised in whole or in part and, subject to Rule 4
           and 5, exercise in part shall not preclude further exercise. If an
           Option remains capable of further exercise the Company shall at the
           Directors' discretion either return the Option Certificate to the
           Participant endorsed to show the number of Shares in respect of which
           it remains capable of exercise or issue to him a new certificate
           which shall contain all the information which would have been
           contained in such endorsed certificate.

     (iv)  The Company shall keep available sufficient unissued or issued Shares
           to satisfy in full all outstanding Options.

     (v)   On the allotment of Shares following the exercise of any Option the
           Company shall as soon as is practicable apply to the Council of The
           Stock Exchange for the relevant Shares to be admitted to the Official
           List.

ISSUE OR REORGANISATION

6.   (i)   In the event of any issue or reorganisation (as defined in paragraph
           (ii) of this Rule) the number and/or class of Shares subject to
           Options and/or the relevant Option Prices shall be adjusted in such
           manner as the Auditors, upon reference to them by the Directors,
           shall confirm in writing to be, in their opinion, fair and reasonable
           provided that the Option Price of a Share shall never be less than
           its nominal value.

     (ii)  For the purpose of paragraph (i) of this Rule, an issue or
           reorganisation means any capitalisation issue or rights issue or any
           consolidation, sub-division or reduction of the capital of the
           Company.

TAKEOVER

7.   (i)   In the event of a general offer being made to acquire the whole of
           the issued ordinary share capital of the Company or all the shares in
           the Company which are of the same class as Shares over which Options
           have been granted (or in either case such part thereof as is not at
           the time owned by the offeror or any company Controlled by the
           offerer and/or persons acting in concert with the offeror), and after
           the announcement of such general offer the offeror and/or any such
           companies and/or persons as aforesaid gains Control of the Company, a
           Participant will (subject to Rule 4(iii)) be entitled at any time
           within the period of three months following the later of the date on
           which Control of the Company passes and the date on which the offer
           becomes unconditional to exercise his Option in accordance with Rule
           5. However, if during such period the offeror becomes entitled or
           bound to exercise rights of compulsory acquisition of Shares pursuant
           to Sections 429 to 430F of the Companies Act 1985, Options shall
           (subject to Rule 4(iii)) be and remain exercisable at any time when
           the offeror remains so bound or entitled.

     (ii)  If under Section 425 of the Companies Act 1985 the court sanctions a
           compromise or arrangement proposed for the purposes of or in
           connection

                                       9
<PAGE>

           with a scheme for the reconstruction of the Company or its
           amalgamation with any other company or companies a Participant may
           exercise all or any of the Options which he holds within the period
           of three months (or such shorter period as the Directors may notify
           to the Participant) following the date of sanction by the court.

     (iii) For the purposes of this Rule 7 (other than paragraph (iv)) a person
           shall be deemed to have obtained Control of a Company if he and
           others acting in concert with him have together obtained Control of
           it.

     (iv)  If any Company ("the Acquiring Company")

           (a)   obtains Control of the Company as a result of making:

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

                 (II)   a general offer to acquire all the Shares in the Company
                        which are of the same class as the Shares over which
                        Options have been granted; or

           (b)   becomes bound or entitled to acquire shares in the Company
                 under Sections 429 to 430F of the Companies Act 1985; or

           (c)   obtains Control of the Company in pursuance of a compromise or
                 arrangement sanctioned by the court under Section 425 of the
                 Companies Act 1985 and proposed for he purposes of or in
                 connection with a scheme for the reconstruction of the Company
                 or its amalgamation with any other company or companies;

           a participant may, with the agreement of the Acquiring Company and
           during the appropriate period as defined in paragraph 15(2) of
           Schedule 9 to the Act, release all or part of his rights under the
           Scheme ("the old rights") in consideration of the grant to him of
           rights ("the new rights") which are equivalent to the old rights (in
           accordance with paragraph 15(3) of the said Schedule) and the new
           rights shall be deemed to have been granted at the time when the old
           rights were granted.

           In the application of the Rules to the new rights

           (I)   the term "Share" shall, in Rules 5, 6 and 7 be taken as
                 referring to a share in the company over whose share capital
                 the new rights are granted;

                                       10
<PAGE>

           (II)  the term "Company" shall, in Rules 5, 6, 7, 8, 9(iv) and 9(vii)
                 be taken as referring to the company over whose share capital
                 the new rights are granted; and

           (III) the term "Auditors" shall, where it appears, be taken as
                 referring to the auditors for the time being of the company
                 over whose share capital the new rights are granted.

     (v)   The Directors shall use reasonable endeavours to notify any
           Participant forthwith of any event of which they have actual notice
           arising pursuant to this Rule which concerns any Option held by him
           for the time being.

     (vi)  The exercise of an Option pursuant to the preceding provisions of
           this Rule shall be subject to the provisions of Rule 5 above.

VOLUNTARY WINDING UP

8.   If a notice of a meeting to consider a resolution for the voluntary
     winding-up of the Company shall be given the Directors shall give notice
     thereof to all Participants and thereupon each Participant shall (subject
     to Rule 4(iii)) forthwith and until the commencement of the winding-up be
     entitled to exercise any Option held by him in the manner provided in Rule
     5 but the exercise of any such Option as aforesaid shall be conditional
     upon the said resolution being duly passed before the lapse of such Option
     pursuant to Rule 4(iii). Subject as aforesaid all Options shall lapse
     immediately after the commencement of a winding-up of the Company.

ADMINISTRATION AND AMENDMENT

9.   (i)   The Scheme shall be administered under the direction of the Directors
           who may at any time and from time to time by resolution amend the
           Rules in any respect provided that:

           (a)   no amendment shall alter to the disadvantage of a Participant
                 any rights already acquired by him under the Scheme except with
                 his prior written consent;

           (b)   without the prior consent of the Company in General Meeting no
                 Amendment to the advantage of any Participant shall be made to
                 the following:

                 (I)    the definitions of "Eligible Employee", "Relevant
                        Emolument" and "Option Price";

                 (II)   to or so as to nullify or override, any of the
                        provisions of Rule 2(i), 2(iv), 2(vi), 3, 4, 5(ii),
                        5(iv), 5(v), 6, 7, 8 or this paragraph (i) of this Rule.

                                       11

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