BP (BP)

Directors' Service Contracts Providing for Benefits upon Termination of Employment

        All service contracts expire at normal retirement date and have a notice period of one year.

        The service contracts of Dr Allen, Dr Hayward, Mr Manzoni and Mr Conn may also be terminated by the Company at any time with immediate effect on payment in lieu of notice equivalent to one year's salary or the amount of salary that would have been paid if the contract had terminated on the expiry of the remainder of the notice period.

        Dr Grote's service contract is with BP Exploration (Alaska) Inc. He is seconded to BP p.l.c. under a secondment agreement dated August 7, 2000. At December 31, 2004, this secondment agreement had an unexpired term of three years. The secondment may be terminated by one month's notice by either party and terminates automatically on the termination of Dr Grote's service contract.

        There are no other provisions for compensation payable on early termination of the above contracts. In the event of early termination under any of the above contracts by the Company other than for cause (or under a specific termination payment provision), the relevant director's then current salary and benefits would be taken into account in calculating any liability of the Company.

139

        Since January 2003, the committee has included a provision in new service contracts to allow for severance payments to be phased, where appropriate to do so. It will also consider mitigation to reduce compensation to a departing director, where appropriate to do so.

Directors' Service Contracts Providing for Benefits upon Termination of Employment

        All service contracts expire at normal retirement date and have a notice period of one year.

        The service contracts of Dr Allen, Dr Hayward, Mr Manzoni and Mr Conn may also be terminated by the Company at any time with immediate effect on payment in lieu of notice equivalent to one year's salary or the amount of salary that would have been paid if the contract had terminated on the expiry of the remainder of the notice period.

        Dr Grote's service contract is with BP Exploration (Alaska) Inc. He is seconded to BP p.l.c. under a secondment agreement dated August 7, 2000. At December 31, 2004, this secondment agreement had an unexpired term of three years. The secondment may be terminated by one month's notice by either party and terminates automatically on the termination of Dr Grote's service contract.

        There are no other provisions for compensation payable on early termination of the above contracts. In the event of early termination under any of the above contracts by the Company other than for cause (or under a specific termination payment provision), the relevant director's then current salary and benefits would be taken into account in calculating any liability of the Company.

133

        Since January 2003, the committee has included a provision in new service contracts to allow for severance payments to be phased, where appropriate to do so. It will also consider mitigation to reduce compensation to a departing director, where appropriate to do so.