BP (BP)

Directors' appointments, retirement policies and insurance

        The chairman and non-executive directors of BP are elected each year and, subject to BP's Articles of Association, serve on the basis of letters of appointment. Executive directors of BP have service contracts with the Company. Details of all payments to directors are set out in Compensation in this Item on pages 121-138.

        Annual elections for all directors and the provision of independent support to our board and board committees underscore our commitment to good governance practice.

        BP's policy on directors' retirement is as follows: executive directors retire at age 60, while non-executive directors ordinarily retire at the AGM following their 70th birthday. It is the board's policy that non-executive directors are not generally expected to hold office for more than 10 years.

        In accordance with BP's Articles of Association, directors are granted an indemnity from the Company to the extent permitted by law in respect of liabilities incurred as a result of their office. In respect of those liabilities for which directors may not be indemnified, the Company purchased and maintained a directors' and officers' liability insurance policy throughout 2004. This insurance cover was

143

renewed at the beginning of 2005. Neither the Company's indemnity nor insurance provides cover in the event that the director is proved to have acted fraudulently or dishonestly.

Directors' appointments, retirement policies and insurance

        The chairman and non-executive directors of BP are elected each year and, subject to BP's Articles of Association, serve on the basis of letters of appointment. Executive directors of BP have service contracts with the Company. Details of all payments to directors are set out in Compensation in this Item on pages 115-132.

        Annual elections for all directors and the provision of independent support to our board and board committees underscore our commitment to good governance practice.

        BP's policy on directors' retirement is as follows: executive directors retire at age 60, while non-executive directors ordinarily retire at the AGM following their 70th birthday. It is the board's policy that non-executive directors are not generally expected to hold office for more than 10 years.

        In accordance with BP's Articles of Association, directors are granted an indemnity from the Company to the extent permitted by law in respect of liabilities incurred as a result of their office. In respect of those liabilities for which directors may not be indemnified, the Company purchased and maintained a directors' and officers' liability insurance policy throughout 2004. This insurance cover was

137

renewed at the beginning of 2005. Neither the Company's indemnity nor insurance provides cover in the event that the director is proved to have acted fraudulently or dishonestly.