Document:

Unassociated Document

     

    Exhibit
      4.29

    GUARANTEE
      ASSUMPTION AGREEMENT

     

    GUARANTEE
      ASSUMPTION AGREEMENT dated as of August 11, 2006 by CONSTELLATION LEASING,
      LLC,
      a New York limited liability company (the "Additional
      Subsidiary Guarantor"),
      in
      favor of JPMorgan Chase Bank, N.A., as administrative agent for the lenders
      or
      other financial institutions or entities party as "Lenders" to the Credit
      Agreement referred to below (in such capacity, together with its successors
      in
      such capacity, the "Administrative
      Agent").

     

    Constellation
      Brands, Inc., a Delaware corporation, the Subsidiary Guarantors referred to
      therein and the Administrative Agent are parties to an Credit Agreement dated
      as
      of June 5, 2006 (as modified and supplemented and in effect from time to time,
      the "Credit
      Agreement").

     

    Pursuant
      to Section 6.09(b) of the Credit Agreement, the Additional Subsidiary
      Guarantor hereby agrees to become a "Subsidiary
      Guarantor"
      for all
      purposes of the Credit Agreement, and an "Obligor"
      for all
      purposes of the U.S. Pledge Agreement. Without limiting the foregoing, the
      Additional Subsidiary Guarantor hereby, jointly and severally with the other
      Subsidiary Guarantors, guarantees to each Lender and the Administrative Agent
      and their respective successors and assigns the prompt payment in full when
      due
      (whether at stated maturity, by acceleration or otherwise) of all Guaranteed
      Obligations (as defined in Section 3.01 of the Credit Agreement) in the
      same manner and to the same extent as is provided in Article III of the
      Credit Agreement. In addition, the Additional Subsidiary Guarantor hereby makes
      the representations and warranties set forth in Sections 4.01, 4.02 and
      4.03 of the Credit Agreement, and in Section 2 of the U.S. Pledge
      Agreement, with respect to itself and its obligations under this Agreement,
      as
      if each reference in such Sections to the Loan Documents included reference
      to
      this Agreement.

     

    The
      Additional Subsidiary Guarantor hereby agrees that Annex 1 of the U.S. Pledge
      Agreement shall be supplemented as provided in Attachment A hereto.

     

    
      
         

        Guarantee
          Assumption Agreement

         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Additional Subsidiary Guarantor has caused this Guarantee
      Assumption Agreement to be duly executed and delivered as of the day and year
      first above written.

     

    

     

    
      	
              CONSTELLATION
                LEASING, LLC

            
	 
	
              By: 

            	
              /s/
                Perry Humphrey

            
	
              Name:   

            	
              Perry
                Humphrey

            
	
              Title:

            	
              Vice
                President 

            

    

    

     

    

     

    
      	
              Accepted
                and agreed:

            
	 
	
              JPMORGAN
                CHASE BANK, N.A., as 

              Administrative
                Agent

            
	 
	
              By:

            	 /s/ Randolph
              Cates
	
              Name:

            	 Randolph Cates
	
              Title:

            	 Vice
              President

    

     

    
      
        
           

          Guarantee
            Assumption Agreement 

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    APPENDIX
      A

     

    SUPPLEMENT
      TO ANNEX 1 TO U.S. PLEDGE AGREEMENT

     

    
      	
               

              U.S.
                ISSUERS

               

            
	
              Issuer

               

            	
              Certificate
                

              No.

               

            	
              Registered
                Owner

               

            	
              Membership
                

              Interests

               

            
	
              Constellation
                Leasing, LLC

               

            	
              1

               

            	
              Constellation
                Brands, Inc.

               

            	
              100%
                of membership interestUnassociated Document

    Exhibit
      10.3

    

    

    Description
      of Compensation Arrangements for Non-Management Directors

    

    

    Following
      is a description of the current compensation arrangements for the non-management
      directors of Constellation Brands, Inc.:

    

    The
      Company’s current compensation program for non-management directors for their
      services as directors includes cash, restricted stock, and stock option
      components.

    

    The
      cash
      component consists of (i) an annual retainer of $60,000, payable in quarterly
      installments of $15,000 at the beginning of each fiscal quarter; (ii) a Board
      meeting fee of $2,500 for each Board meeting attended (which includes regular,
      special and annual Board meetings and attendance in person or by conference
      telephone); (iii) a committee meeting fee of $1,500 per meeting attended
      (including by conference telephone); and (iv) an annual fee of $12,000 (payable
      in quarterly installments of $3,000) to the Chair of the Audit Committee and
      an
      annual fee of $9,000 (payable in quarterly installments of $2,250) to the
      position of Chairs of each of the Human Resources Committee and the Corporate
      Governance Committee. 

    

    Long-term
      incentive awards in the form of options and restricted stock are another element
      of non-management director compensation. Long-term incentive awards in the
      form
      of, among others, stock options, stock appreciation rights and restricted stock
      are available for grant under the Company’s Long-Term Stock Incentive Plan.
Each
      non-management director receives annually, if and as approved by the Board
      of
      Directors, a stock option grant and a restricted stock award. The number of
      shares that may be subject to an annual option grant will not exceed the number
      obtained by dividing $70,000 by the closing price of a share of the Company’s
      Class A Common Stock on the date of the grant. The number of shares of
      restricted stock that may be awarded is calculated by dividing the sum of
      $40,000 by the closing price of a share of the Company’s Class A Common Stock on
      the date of grant.  While the Board has the flexibility to determine at the
      time of each grant or award the vesting provisions for that grant or award,
      historically stock option grants vest six (6) months following the date of
      grant
      and annual awards of restricted stock vest one (1) year from the date of grant.
      The plan, the form of Terms and Conditions Memorandum provided to non-management
      directors who receive options and the form of restricted stock agreement are
      filed as Exhibits 10.4 through 10.10, 10.12 and 10.13 to the Company’s Annual
      Report on Form 10-K for the fiscal year ended February 28, 2006. 

    

    Non-management
      directors are reimbursed for reasonable expenses incurred in connection with
      their attendance at Board and committee meetings. They also receive
      complimentary Company products having a value of up to $5,000 and are eligible
      to participate in a matching contribution program of the Company
      whereby
      they can direct a portion of the Company’s charitable contributions not in
      excess of $5,000.

    

    Members
      of the Board of Directors who are members of management serve without receiving
      any additional fee or other compensation for their service on the
      Board.Unassociated Document

    Exhibit
      10.4

    
 

    
      	 	 
	 
	 
	
              THE
                CONSTELLATION BRANDS UK SHARESAVE SCHEME

               

              Changes
                to Scheme name and to limit (Rule 10.1) to reflect change of Company
                name
                

              and
                stock split approved by Revenue on 25 March 2002

               

              Board
                resolved to amend limit in Rule 10.1 further with effect from May
                13 2002
                

              (subject
                to Revenue approval which was obtained on 1 May
                2002)

               

              Changes
                to limit (Rule 10.1) to remove discretion to exceed the cap on the
                number
                of 

              shares
                with consequent changes to rules 4.1 and 5.1 (subject to Inland Revenue
                and 

              Company
                Stockholder approvals, which were obtained 

              on
                4 May 2006 and 27 July 2006, respectively)

               

            
	 	 	 

    

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    Date
      adopted: 29 October 1999

     

    Inland
      Revenue ref: SRS 2318

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

      
        	
                CONTENTS

                 

              
	
                Clause

                 

              	
                Page

                 

              
	
                1.

                 

              	
                DEFINITIONS AND INTERPRETATION
                  .........................................................................

                 

              	
                1

                 

              
	
                2.

                 

              	
                ELIGIBILITY
                  ....................................................................................................................

                 

              	
                2

                 

              
	
                3.

                 

              	
                GRANT OF OPTIONS
                  ......................................................................................................

                 

              	
                3

                 

              
	
                4.

                 

              	
                LIMIT
                  ...............................................................................................................................

                 

              	
                6

                 

              
	
                5.

                 

              	
                EXERCISE OF OPTIONS
                  ..................................................................................................

                 

              	
                6

                 

              
	
                6.

                 

              	
                TAKEOVER, RECONSTRUCTION AND WINDING UP
                  ....................................................

                 

              	
                9

                 

              
	
                7.

                 

              	
                VARIATION OF CAPITAL
                  ................................................................................................

                 

              	
                10

                 

              
	
                8.

                 

              	
                ALTERATIONS
                  .................................................................................................................

                 

              	
                11

                 

              
	
                9.

                 

              	
                MISCELLANEOUS
                  ............................................................................................................

                 

              	
                11

                 

              
	
                10.

                 

              	
                AVAILABLE
                  SHARES
                  .......................................................................................................

                 

              	
                12

                 

              

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	1. 
                	
              DEFINITIONS AND INTERPRETATION

            

    

     

    
      	   1.1
                	
              In
                this Scheme, unless the context otherwise
                requires:-

            

    

     

    "3-Year
      Option",
      "5-Year
      Option"
      and
      "7-Year
      Option"
      have
      the meanings given in sub-rule 3.2 below;

     

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

     

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

     

    "Bonus
      Date",
      in
      relation to an option, means:-

     

    
      	1.1.1    	
              in
                the case of a 3-Year Option, the earliest date on which the bonus
                is
                payable, 

            

    

     

    
      	1.1.2  
               	
              in
                the case of a 5-Year Option, the earliest date on which a bonus is
                payable, and

            

    

     

    
      	1.1.3  
               	
              in
                the case of a 7-Year Option, the earliest date on which the maximum
                bonus
                is payable;

            

    

     

    and
      for
      this purpose "payable" means payable under the Savings Contract made in
      connection with the option;

     

    "Common
      Stock"
      means
      the Class A Common Stock of the Company, par value $0.01 per share;

     

    "the
      Company"
      means
      Constellation Brands, Inc., a company organised under the laws of the State
      of
      Delaware in the USA;

     

    "the
      Grant Day"
      shall
      be construed in accordance with sub-rule 2.1 below;

     

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

     

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

     

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

     

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

     

    "Schedule
      9"
      means
      Schedule 9 to the Taxes Act 1988;

     

    -
      1 -

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

    
      	 
              1.2  	
              Any
                reference in this Scheme to any enactment includes a reference to
                that
                enactment as from time to time modified, extended or
                re-enacted.

            

    

     

    
      	1.3  	
              Expressions
                in italics are for guidance only and do not form part of this
                Scheme.

            

    

     

     

    
      	2.
                 	
              ELIGIBILITY

            

    

     

    
      	2.1  	
              Subject
                to sub-rule 2.5 below, an individual is eligible to be granted an
                option
                on any day ("the
                Grant Day")
                if (and only if):-

            

    

     

    
      	2.1.1  	
              he
                is on the Grant Day an employee or director of a company which is
                a
                Participating Company; and

            

    

     

    
      	2.1.2  	
              he
                either satisfies the conditions specified in sub-rule 2.2 below or
                is
                nominated by the Board for this
                purpose.

            

    

     

    
      	2.2  	
              The
                conditions referred to in sub-rule 2.1.2 above are that the
                individual:-

            

    

     

    
      	2.2.1  	
              shall
                at all times during the qualifying period have been an employee (but
                not a
                director) or a full-time director of the Company or a company which
                was
                for the time being a Subsidiary;
                and

            

    

     

    
      	2.2.2  	
              was
                at the relevant time chargeable to tax in respect of his employment
                or
                office under Case I of Schedule
                E.

            

    

     

    
      	2.3  	
              For
                the purposes of sub-rule 2.2
                above:-

            

    

     

    
      	2.3.1  	
              the
                relevant time
                is
                the date on which any invitation is given under Rule 3.6 below or
                such
                other time during the period of 5 years ending with the Grant Day
                as the
                Board may determine (provided that no such determination may be made
                if it
                would have the effect that the qualifying period would not fall within
                that 5-year period); 

            

    

     

    
      	2.3.2  	
              there
                shall be no qualifying period prior to the relevant time unless the
                Board
                determines otherwise (provided that no determination may be made
                if it
                would have the effect that the qualifying period would not fall within
                the
                said 5-year period);

            

    

     

    -
      2 -

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	2.3.3  	
              an
                individual shall be treated as a full-time
                director
                of
                a company if he is obliged to devote to the performance of the duties
                of
                his office or employment with the company not less than 25 hours
                a
                week;

            

    

     

    
      	2.3.4  	
              Chapter
                I of Part XIV of the Employment Rights Act 1996 shall have effect,
                with
                any necessary changes, for ascertaining the length of the period
                during
                which an individual shall have been an employee or a full-time director
                and whether he shall have been an employee or a full-time director
                at all
                times during that period.

            

    

     

    
      	2.4  	
              Any
                determination of the Board under paragraph 2.3.1 or 2.3.2 above shall
                have
                effect in relation to every individual for the purpose of ascertaining
                whether he is eligible to be granted an option on the Grant
                Day.

            

    

     

    
      	2.5  	
              An
                individual is not eligible to be granted an option at any time if
                he is at
                that time ineligible to participate in this Scheme by virtue of paragraph
                8 of Schedule 9 (material
                interest in close company).

            

    

     

     

    
      	3. 
                	
              GRANT OF OPTIONS

            

    

     

    
      	3.1  	
              Subject
                to Rule 4 below, the Board may grant an option to acquire shares
                of Common
                Stock which satisfy the requirements of paragraphs 10 to 14 of Schedule
                9
                (fully paid up, unrestricted, ordinary share capital),
                upon the terms set out in this Scheme, to any individual
                who:-

            

    

     

    
      	3.1.1  	
              is
                eligible to be granted an option in accordance with Rule 2 above,
                and

            

    

     

    
      	3.1.2  	
              has
                applied for an option and proposed to make a Savings Contract in
                connection with it (with a Savings Body approved by the Board) in
                the form
                and manner prescribed by the Board,

            

    

     

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

     

    
      	3.2  	
              The
                type of option to be granted to an individual, that is to say a 3-Year
                Option, a 5-Year Option or a 7-Year Option, shall be determined by
                the
                Board or, if the Board so permits, by the individual; and for this
                purpose:-

            

    

     

    
      	3.2.1  	
              a
                3-Year
                Option
                is
                an option in connection with which a three year Savings Contract
                is to be
                made and in respect of which, subject to sub-rule 4.3 below, the
                repayment
                is to be taken as including the
                bonus;

            

    

     

    
      	3.2.2  	
              a
                5-Year
                Option
                is
                an option in connection with which a five year Savings Contract is
                to be
                made and in respect of which, subject to sub-rule 4.3 below, the
                repayment
                is to be taken as including a bonus other than the maximum bonus;
                and

            

    

     

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      3 -

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	3.2.3  	
              a
                7-Year
                Option
                is
                an option in connection with which a five year Savings Contract is
                to be
                made and in respect of which the repayment is to be taken as including
                the
                maximum bonus.

            

    

     

    
      	3.3  	
              The
                amount of the monthly contribution under the Savings Contract to
                be made
                in connection with an option granted to an individual shall, subject
                to
                sub-rule 4.3 below, be the amount which the individual shall have
                specified in his application for the option that he is willing to
                pay or,
                if lower, the maximum permitted amount, that is to say, the maximum
                amount
                which:-

            

    

     

    
      	3.3.1  	
              when
                aggregated with the amount of his monthly contributions under any
                other
                Savings Contract linked to this Scheme or to any other savings-related
                share option scheme approved under Schedule 9, does not exceed £250 or
                such other maximum amount as may for the time being be permitted
                by
                paragraph 24(2)(a) of Schedule 9;

            

    

     

    
      	3.3.2  	
              does
                not exceed the maximum amount for the time being permitted under
                the terms
                of the Savings Contract; and

            

    

     

    
      	3.3.3  	
              when
                aggregated with the amount of his monthly contributions under any
                other
                Savings Contract linked to this Scheme, does not exceed any maximum
                amount
                determined by the Board.

            

    

     

    
      	3.4  	
              The
                number of shares of Common Stock in respect of which an option may
                be
                granted to any individual shall be the maximum number which can be
                paid
                for, at the price determined under sub-rule 3.5 below, with monies
                equal
                to the amount of the repayment due on the Bonus Date under the Savings
                Contract to be made in connection with the
                option.

            

    

     

    
      	3.5  	
              The
                price at which shares of Common Stock may be acquired by the exercise
                of
                options of a particular type granted on any day shall be a price
                denominated in US dollars which is determined by the Board and stated
                on
                that day, provided that:-

            

    

     

    
      	3.5.1  	
              if
                shares of Common Stock are quoted on the New York Stock Exchange,
                the
                price shall not be less than the Specified Percentage of the closing
                price
                of shares of Common Stock on the New York Stock Exchange (as reported
                by
                such Exchange) on:

            

    

     

    
      	(a)  	
              the
                dealing day last preceding the date on which invitations to apply
                for the
                options were given pursuant to sub-rule 3.6 below,
                or

            

    

     

    
      	(b)  	
              if
                that dealing day does not fall within the period of 30 days (or,
                where
                sub-rule 4.3 below applies, 42 days) ending with the day on which
                the
                options are granted or falls prior to the date on which the Company
                last
                announced its results, on the dealing day last preceding the day
                on which
                the options 

            

    

     

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      4 -

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	
              are
                granted or such other dealing day as may be agreed with the Inland
                Revenue;

            

    

     

    
      	3.5.2  	
              if
                sub-rule 3.5.1 above does not apply, the price shall not be less
                than the
                Specified Percentage of the market value (within the meaning of Part
                VIII
                of the Taxation of Chargeable Gains Act 1992) of shares of Common
                Stock,
                as agreed in advance for the purposes of this Scheme with the Shares
                Valuation Division of the Inland Revenue, on
                -

            

    

     

    
      	(a)  	
              the
                date on which invitations to apply for the options were given pursuant
                to
                sub-rule 3.6 below, or

            

    

     

    
      	(b)  	
              if
                that date does not fall within the period of 30 days (or, where sub-rule
                4.3 below applies, 42 days) ending with the day on which the options
                are
                granted, on the day on which the options are granted or such other
                day as
                may be agreed with the Inland Revenue;
                and

            

    

     

    
      	3.5.3  	
              in
                the case of an option to acquire shares of Common Stock only by
                subscription, the price shall not be less than the nominal value
                of those
                shares; 

            

    

     

    and
      for
      this purpose "the
      Specified Percentage"
      is
      80 per cent. or such other percentage as may be specified in paragraph 25
      of Schedule 9.

     

    
      	3.6  	
              The
                Board shall ensure that, in relation to the grant of options on any
                day:-

            

    

     

    
      	3.6.1  	
              every
                individual who is eligible to be granted an option on that day has
                been
                given an invitation; 

            

    

     

    
      	3.6.2  	
              the
                invitation specifies a period of not less than 14 days in which an
                application for an option may be made;
                and

            

    

     

    
      	3.6.3  	
              every
                eligible individual who has applied for an option as mentioned in
                sub-rule
                3.1 above is in fact granted an option on that
                day.

            

    

     

    
      	3.7  	
              An
                invitation to apply for an option may only be given within the period
                of
                10 years beginning with the date on which this Scheme is adopted
                by the
                Company.

            

    

     

    
      	3.8  	
              An
                option granted to any person:-

            

    

     

    
      	3.8.1  	
              shall
                not, except as provided in sub-rule 5.3 below, be capable of being
                transferred by him; and 

            

    

     

    
      	3.8.2  	
              shall
                lapse forthwith if he is adjudged
                bankrupt.

            

    

     

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      5 -

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	4.
                 	
              LIMIT

            

    

     

    
      	4.1  	
              No
                options shall be granted to acquire a number of shares of Common
                Stock
                which exceeds any number ("the Limit") determined by the Board using
                the
                sterling/US dollar exchange rate at the date the invitation to enter
                a
                Savings Contract closes. 

            

    

     

    
      	4.2  	
              If
                the grant of options on any day would but for this sub-rule cause
                the
                Limit to be exceeded, the provisions set out in sub-rule 4.3 below
                shall
                be successively applied (in the order in which they are set out)
                so far as
                is necessary to ensure that the Limit is not
                exceeded.

            

    

     

    
      	4.3  	
              Those
                provisions are:-

            

    

     

    
      	4.3.1  	
              any
                option which would otherwise be a 7-Year Option shall be a 5-Year
                Option;

            

    

     

    
      	4.3.2  	
              the
                repayment under the Savings Contract shall be taken as not including
                a
                bonus;

            

    

     

    
      	4.3.3  	
              unless
                paragraph 4.3.4 below applies, the amount of the monthly contribution
                determined under sub-rule 3.3 above shall be taken as successively
                reduced
                by 0.5 per cent. thereof, 1 per cent. thereof, 1.5 per cent. thereof
                and
                so on and then rounded up to the nearest pound, but shall not be
                reduced
                to less than the minimum amount permitted under the terms of the
                Savings
                Contract; 

            

    

     

    
      	4.3.4  	
              if
                the Board shall have decided that this paragraph is to apply, for
                the
                purpose of determining the amount of the monthly contribution, the
                maximum
                permitted amount referred to in sub-rule 3.3 above shall be taken
                as
                successively reduced by £1, £2, £3 and so on, but shall not be reduced to
                less than the minimum amount permitted under the terms of the Savings
                Contract;

            

    

     

    
      	4.3.5  	
              any
                option which would otherwise be a 5-Year Option shall be a 3-Year
                Option;

            

    

     

    
      	4.3.6  	
              the
                Board shall not grant any options on the day in
                question.

            

    

     

     

    
      	5.
                 	
              EXERCISE OF OPTIONS

            

    

     

    
      	5.1  	
              The
                exercise of any option shall be effected in the form and manner prescribed
                by the Board, provided that the monies paid for shares of Common
                Stock on
                such exercise shall not exceed the amount of the repayment made and
                any
                interest paid under the Savings Contract made in connection with
                the
                option, so that if the prevailing sterling/US dollar exchange rate
                at the
                time of exercise of any option has fluctuated to the extent that
                fewer
                shares may be purchased by a Participant than the maximum amount
                over
                which the Participant has been granted options, the Board will adjust
                downwards when allotting the shares to the
                Participant.

            

    

     

    
      	5.2  	
              Subject
                to sub-rules 5.3, 5.4 and 5.6 below and to Rule 6 below, an option
                shall
                not be capable of being exercised before the Bonus
                Date.

            

    

     

    
      	5.3  	
              Subject
                to sub-rule 5.8 below:-

            

    

     

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      	5.3.1  	
              if
                any Participant dies before the Bonus Date, any option granted to
                him may
                (and must, if at all) be exercised by his personal representatives
                within
                12 months after the date of his death, and

            

    

     

    
      	5.3.2  	
              if
                he dies on or within 6 months after the Bonus Date, any option granted
                to
                him may (and must, if at all) be exercised by his personal representatives
                within 12 months after the Bonus
                Date,

            

    

     

    provided
      in either case that his death occurs at a time when he either holds the office
      or employment by virtue of which he is eligible to participate in this Scheme
      or
      is entitled to exercise the option by virtue of sub-rule 5.4 below.

     

    
      	5.4  	
              Subject
                to sub-rule 5.8 below, if any Participant ceases to hold the office
                or
                employment by virtue of which he is eligible to participate in this
                Scheme
                (otherwise than by reason of his death), the following provisions
                apply in
                relation to any option granted to
                him:-

            

    

     

    
      	5.4.1  	
              if
                he so ceases by reason of injury, disability, redundancy within the
                meaning of the Employment Rights Act 1996, or retirement on reaching
                the
                age of 65 or any other age at which he is bound to retire in accordance
                with the terms of his contract of employment, the option may (and
                subject
                to sub-rule 5.3 above must, if at all) be exercised within 6 months
                of his
                so ceasing;

            

    

     

    
      	5.4.2  	
              if
                he so ceases by reason only that the office or employment is in a
                company
                of which the Company ceases to have control, or relates to a business
                or
                part of a business which is transferred to a person who is neither
                an
                Associated Company of the Company nor a company of which the Company
                has
                control, the option may (and subject to sub-rule 5.3 above must,
                if at
                all) be exercised within 6 months of his so
                ceasing;

            

    

     

    
      	5.4.3  	
              if
                he so ceases for any other reason within 3 years of the grant of
                the
                option, the option may not be exercised at
                all;

            

    

     

    
      	5.4.4  	
              if
                he so ceases for any other reason (except for dismissal for misconduct)
                more than 3 years after the grant of the option, the option may (and
                subject to sub-rule 5.3 above must, if at all) be exercised within
                6
                months of his so ceasing.

            

    

     

    
      	5.5  	
              Subject
                to sub-rule 5.8 below, if, at the Bonus Date, a Participant holds
                an
                office or employment with a company which is not a Participating
                Company
                but which is an Associated Company or a company of which the Company
                has
                control, any option granted to him may (and subject to sub-rule 5.3
                above
                must, if at all) be exercised within 6 months of the Bonus
                Date.

            

    

     

    
      	5.6  	
              Subject
                to sub-rule 5.8 below, where any Participant continues to hold the
                office
                or employment by virtue of which he is eligible to participate in
                this
                Scheme after the date on which he reaches the age of 65, he may exercise
                any option within 6 months of that
                date.

            

    

     

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      	5.7  	
              Subject
                to sub-rule 5.3 above, an option shall not be capable of being exercised
                later than 6 months after the Bonus
                Date.

            

    

     

    
      	5.8  	
              Where,
                before an option has become capable of being exercised, the Participant
                gives notice that he intends to stop paying monthly contributions
                under
                the Savings Contract made in connection with the option, or is deemed
                under its terms to have given such notice, or makes an application
                for
                repayment of the monthly contributions paid under it, the option
                may not
                be exercised at all.

            

    

     

    
      	5.9  	
              A
                Participant shall not be treated for the purposes of sub-rules 5.3
                and 5.4
                above as ceasing to hold the office or employment by virtue of which
                he is
                eligible to participate in this Scheme until he ceases to hold an
                office
                or employment in the Company or any Associated Company or company
                of which
                the Company has control, and a female Participant who ceases to hold
                the
                office or employment by virtue of which she is eligible to participate
                in
                this Scheme by reason of pregnancy or confinement and who exercises
                her
                right to return to work under the Employment Rights Act 1996 before
                exercising her option shall be treated for the purposes of sub-rule
                5.4
                above as not having ceased to hold that office or
                employment.

            

    

     

    
      	5.10  	
              A
                Participant shall not be eligible to exercise an option at any
                time:-

            

    

     

    
      	5.10.1  	
              unless,
                subject to sub-rules 5.4 and 5.5 above, he is at that time a director
                or
                employee of a Participating
                Company;

            

    

     

    
      	5.10.2  	
              if
                he is not at that time eligible to participate in this Scheme by
                virtue of
                paragraph 8 of Schedule 9 (material
                interest in close company).
                

            

    

     

    
      	5.11  	
              An
                option shall not be capable of being exercised more than
                once.

            

    

     

    
      	5.12  	
              Within
                30 days after an option has been exercised by any person, the Board
                shall
                allot to him (or a nominee for him) or, as appropriate, procure the
                transfer to him (or a nominee for him) of the number of shares of
                Common
                Stock in respect of which the option has been exercised, provided
                that:-

            

    

     

    
      	5.12.1  	
              the
                Board considers that the issue or transfer thereof would be lawful
                in all
                relevant jurisdictions; and

            

    

     

    
      	5.12.2  	
              in
                a case where a Participating Company is obliged to (or would suffer
                a
                disadvantage if it were not to) account for any tax (in any jurisdiction)
                for which the person in question is liable by virtue of the exercise
                of
                the option and/or for any social security contributions recoverable
                from
                the person in question (together, the "Tax Liability"), that person
                has
                either:

            

    

     

    
      	(a)  	
              made
                a payment to the Participating Company of an amount equal to the
                Tax
                Liability; or

            

    

     

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

            

    

     

    
      	5.13  	
              All
                shares of Common Stock allotted under this Scheme shall rank equally
                in
                all respects with shares of Common Stock then in issue except for
                any
                rights attaching to such shares of Common Stock by reference to a
                record
                date before the date of the allotment.

            

    

     

    
      	5.14  	
              If
                shares of Common Stock are listed on any stock exchange, the Company
                shall
                apply to that stock exchange for any shares of Common Stock so allotted
                to
                be admitted thereto.

            

    

     

     

    
      	6.    	
              TAKEOVER, RECONSTRUCTION AND WINDING UP

            

    

     

    
      	6.1  	
              If
                any person obtains control of the Company as a result of making a
                general
                offer to acquire shares in the Company, or having obtained control
                makes
                such an offer, the Board shall within 7 days of becoming aware thereof
                notify every Participant thereof and, subject to sub-rules 5.3, 5.4,
                5.7
                and 5.8 above, any option may be exercised within one month (or such
                longer period as the Board may permit) of the notification, but not
                later
                than 6 months after that person has obtained
                control.

            

    

     

    
      	6.2  	
              For
                the purposes of sub-rule 6.1 above, a person shall be deemed to have
                obtained control of the Company if he and others acting in concert
                with
                him have together obtained control of
                it.

            

    

     

    
      	6.3  	
              If
                a compromise or arrangement is effected for the purposes of or in
                connection with a scheme for the reconstruction of the Company or
                its
                amalgamation with any other company or companies, or if the Company
                passes
                a resolution for voluntary winding up, the Board shall forthwith
                notify
                every Participant thereof and, subject to sub-rules 5.3, 5.4, 5.7
                and 5.8
                above, any option may be exercised within one month of the notification,
                but to the extent that it is not exercised within that period shall
                (notwithstanding any other provision of this Scheme) lapse on the
                expiration of that period.

            

    

     

    
      	6.4  	
              If
                any company ("the acquiring
                company"):-

            

    

     

    
      	6.4.1  	
              obtains
                control of the Company as a result of making-

            

    

     

    
      	(a)  	
              a
                general offer to acquire the whole of the issued ordinary share capital
                of
                the Company which is made on a condition such that if it is satisfied
                the
                acquiring company will have control of the Company,
                or

            

    

     

    
      	(b)  	
              a
                general offer to acquire all the shares in the Company which are
                of the
                same class as the shares which may be acquired by the exercise of
                options
                granted under this Scheme,

            

    

     

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      9 -

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    any
      Participant may at any time within the appropriate period (which expression
      shall be construed in accordance with paragraph 15(2) of Schedule 9),
      by agreement with the acquiring company, release any option which has not lapsed
      ("the old option") in consideration of the grant to him of an option ("the
      new
      option") which (for the purposes of that paragraph) is equivalent to the old
      option but relates to shares in a different company (whether the acquiring
      company itself or some other company falling within paragraph 10(b) or (c)
      of
      Schedule 9).

     

    
      	6.5  	
              The
                new option shall not be regarded for the purposes of sub-rule 6.4
                above as
                equivalent to the old option unless the conditions set out in paragraph
                15(3) of Schedule 9 are satisfied, but so that the provisions of
                this
                Scheme shall for this purpose be construed as
                if:-

            

    

     

    
      	6.5.1  	
              the
                new option were an option granted under this Scheme at the same time
                as
                the old option;

            

    

     

    
      	6.5.2  	
              except
                for the purposes of the definitions of "Participating Company" and
                "Subsidiary" in sub-rule 1.1 and sub-rules 5.4.2, 5.5 and 5.9 above,
                the
                expression "the Company" were defined as "a company whose shares
                may be
                acquired by the exercise of options granted under this
                Scheme";

            

    

     

    
      	6.5.3  	
              the
                Savings Contract made in connection with the old option had been
                made in
                connection with the new option;

            

    

     

    
      	6.5.4  	
              the
                Bonus Date in relation to the new option were the same as that in
                relation
                to the old option.

            

    

     

     

    
      	7. 
                	
              VARIATION OF CAPITAL

            

    

     

    
      	7.1  	
              Subject
                to sub-rule 7.3 below, in the event of any variation of the share
                capital
                of the Company, the Board may make such adjustments as it considers
                appropriate under sub-rule 7.2
                below.

            

    

     

    
      	7.2  	
              An
                adjustment made under this sub-rule shall be to one or more of the
                following:-

            

    

     

    
      	7.2.1  	
              the
                price at which shares of Common Stock may be acquired by the exercise
                of
                any option;

            

    

     

    
      	7.2.2  	
              where
                any option has been exercised but no shares of Common Stock have
                been
                allotted or transferred pursuant to the exercise, the price at which
                they
                may be acquired;

            

    

     

    
      	7.2.3  	
              the
                number of shares of Common Stock mentioned in Rule 10
                below.

            

    

     

    
      	7.3  	
              At
                a time when this Scheme is approved by the Inland Revenue under Schedule
                9, no adjustment under sub-rule 7.2 above shall be made without the
                prior
                approval of the Inland Revenue.

            

    

     

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      	7.4  	
              An
                adjustment under sub-rule 7.2 above may have the effect of reducing
                the
                price at which shares of Common Stock may be acquired by the exercise
                of
                an option to less than their nominal value, but only if and to the
                extent
                that the Board shall be authorised to capitalise from the reserves
                of the
                Company a sum equal to the amount by which the nominal value of the
                shares
                of Common Stock in respect of which the option is exercised exceeds
                the
                price at which such shares may be subscribed for and to apply that
                sum in
                paying up that amount on such shares; and so that on the exercise
                of any
                option in respect of which such a reduction shall have been made
                the Board
                shall capitalise that sum (if any) and apply it in paying up that
                amount.

            

    

     

     

    
      	8.
                 	
              ALTERATIONS

            

    

     

    The
      Board
      may at any time alter this Scheme, provided that no alteration shall be made
      at
      a time when this Scheme is approved by the Inland Revenue under Schedule 9
      without the prior approval of the Inland Revenue.

     

     

    
      	9.
                 	
              MISCELLANEOUS

            

    

     

    
      	9.1  	
              The
                rights and obligations of any individual under the terms of his office
                or
                employment with the Company or a Subsidiary shall not be affected
                by his
                participation in this Scheme or any right which he may have to participate
                in it, and an individual who participates in it shall waive all and
                any
                rights to compensation or damages in consequence of the termination
                of his
                office or employment for any reason whatsoever insofar as those rights
                arise or may arise from his ceasing to have rights under or be entitled
                to
                exercise any option as a result of such
                termination.

            

    

     

    
      	9.2  	
              In
                the event of any dispute or disagreement as to the interpretation
                of this
                Scheme, or as to any question or right arising from or related to
                this
                Scheme, the decision of the Board shall be final and binding upon
                all
                persons.

            

    

     

    
      	9.3  	
              The
                Company and any Subsidiary may provide money to the trustees of any
                trust
                or any other person to enable them or him to acquire shares of Common
                Stock to be held for the purposes of this Scheme, or enter into any
                guarantee or indemnity for those purposes, to the extent permitted
                by any
                applicable laws.

            

    

     

    
      	9.4  	
              Any
                notice or other communication under or in connection with this Scheme
                may
                be given by personal delivery or by sending it by post, in the case
                of a
                company to its registered office, and in the case of an individual
                to his
                last known address, or, where he is a director or employee of the
                Company
                or a Subsidiary, either to his last known address or to the address
                of the
                place of business at which he performs the whole or substantially
                the
                whole of the duties of his office or
                employment.

            

    

     

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      11 -

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	10. 
                	
              AVAILABLE
                SHARES

            

    

     

    
      	10.1  	
              No
                more than 2,000,000 shares of Common Stock shall be made available
                under
                this Scheme, provided that this number may be adjusted by the Board
                as
                provided for in Rule 7.2.3 above.

            

    

     

    
      	10.2  	
              The
                shares of Common Stock to be made available under this Scheme may
                be
                authorised and unissued shares of Common Stock, previously issued
                shares
                of Common Stock acquired by the Company and held as treasury shares
                or
                shares of Common Stock purchased in the open
                market.

            

    

     

    

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      12 -

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