|23rd July 2001REUTERS
GROUP PLC
THOMAS H.
GLOCER
SERVICE
AGREEMENT


[LOGO] FRESHFIELDS
BRUCKHAUS DERINGER
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|[LOGO]
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|    |  |                                    |   
|--- |  | ---------------------------------- | --
|15. |  | WAIVER                             | 16
|    |  |                                    |   
|16. |  | AMENDMENTS                         | 16
|    |  |                                    |   
|17. |  | NOTICES                            | 16
|    |  |                                    |   
|18. |  | OTHER AGREEMENTS                   | 17
|    |  |                                    |   
|19. |  | GOVERNING LAW                      | 17
|    |  |                                    |   
|20. |  | WITHHOLDING OR DEDUCTIONS FOR TAX  | 17
|    |  |                                    |   
|    |  | SCHEDULE 1                         | 18
|    |  |                                    |   
|    |  | OTHER BENEFITS                     | 18
|    |  |                                    |   
|21. |  | BONUS                              | 18
|    |  |                                    |   
|22. |  | HOLIDAYS                           | 18
|    |  |                                    |   
|23. |  | PENSION PLANS                      | 18
|    |  |                                    |   
|24. |  | LONG TERM INCENTIVE PLAN           | 19
|    |  |                                    |   
|25. |  | MEDICAL/DISABILITY INSURANCE       | 19
|    |  |                                    |   
|26. |  | LIFE ASSURANCE                     | 19
|    |  |                                    |   
|27. |  | COMPANY CAR                        | 19
|    |  |                                    |   
|28. |  | DIRECTORS INDEMNITY AND INSURANCE | 19
|    |  |                                    |   
|29. |  | OTHER BENEFITS                     | 20

|                                                             | 
|------------------------------------------------------------ | 
|                                                             | 
|SCHEDULE 2                                                   | 
|                                                             | 
|COMPETING BUSINESS CONCERNS AS AT THE DATE OF THIS AGREEMENT | 
|                                                             | 
|SCHEDULE 3                                                   | 
|                                                             | 
|PERMITTED SHAREHOLDINGS AS AT THE DATE OF THIS AGREEMENT     | 

|[LOGO]
|------

|AGREEMENT is made on 23rd July 2001


BETWEEN


(1) REUTERS GROUP PLC registered in
England with No. 3296375 whose registered office is at 85 Fleet Street, London, EC4P 4AJ
(the Company); and


(2) THOMAS HENRY GLOCER of 32 Hyde
Park Gate, London SW7 (you).


IT IS AGREED as follows:


DEFINITIONS


1. In this Agreement the following
expressions shall have the following meanings:


Boardmeans the board of directors
of the Company or a duly constituted committee of the board of directors;


Employmentmeans your employment in
accordance with the terms and conditions of this Agreement;


Groupmeans the Company, any holding company of the Company and any
subsidiary of the Company or of any such holding company (with holding company
and subsidiary having the meanings given to them by section 736 of the
Companies Act 1985 of England and Wales). Group Company and
Group Companies shall be construed accordingly;


Relevant
Year means the three successive periods, 1 January  31
December 2001, 1 January  31 December 2002 and 1 January 2002  31
December 2003; and


Remuneration
Committee means the remuneration committee of the Board.


DURATION OF
EMPLOYMENT


2.1 This Agreement will be
effective from 1 July 2001 (the Effective Date). Your
Employment under this Agreement will continue until terminated in accordance
with Clause 11 below (the Employment Period).


2.2 It is acknowledged that your
continuous employment for statutory purposes began on 29 September 1993.


ROLE, POWERS
AND DUTIES


3.1 From the Effective
Date, you will serve the Company as Chief Executive Officer of the Company and
executive director of the Company.


3.2 During the Employment
Period, you will exercise such powers and perform such duties in relation to the
business of the Company and the Group, being duties which are customary,
appropriate to and consistent with your status as may reasonably be assigned to
you by the Board from time to time. During the Employment Period, you shall
report solely and directly to the Board.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.3 During the Employment Period you
will:
|------------------------------------------

|(a) |  | subject to Clause 8.1, devote substantially the whole of your working time,
attention and abilities to carrying out your duties under Clauses 3.1 and 3.2;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | comply
with the duties imposed on you as a director by law;
|--- |  | -----------------------------------------------------------

|(c) |  | use
all reasonable endeavours to promote the interests of the Company and any other Group
Company which you may be required to serve under the terms of this Agreement;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | have due regard to the Reuter Trust Principles and to the rights and duties of
the Reuter Trustees as set out in the Memorandum and Articles of Association of
the Company and in the Memorandum and Articles of Association of Reuters
Founders Share Company Limited insofar as, by the proper exercise of your powers
(and in accordance with your other duties) as director of the Company, the
Reuter Trust Principles are capable of being observed by you;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | have due regard to the provisions of the Reuters Code of Conduct (as notified to
you from time to time) and, so far as reasonably practicable in the performance
of your duties, observe all material provisions of that Code;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | comply
with the Reuters Share Dealings Code (as notified to you from time to time);
|--- |  | -----------------------------------------------------------------------------------

|(g) |  | have
due regard to the provisions of all other material policies which apply to you as an
executive employed by a Group Company, as notified to you from time to time; and
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(h) |  | other than absences due to illness or vacation or as otherwise may be required
to fulfil your duties hereunder, regularly attend meetings of the Board and of
any committees of the Board to which you may be appointed.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|NORMAL PLACE
OF WORK


4. Your normal place of
work is at the Companys head office in London. You will be required, in
the performance of your duties, to travel in the United Kingdom and overseas.
However, having given you not less than 90 days notice, the Company may
reasonably require you to relocate to perform your duties at the offices of
another Group Company in New York. In addition, the Company shall reimburse you
all relocation expenses in respect of your relocation to New York in a manner
which is consistent with the benefits provided in Clause 9 of Schedule 1.


HOURS OF WORK


5. You will work the
Companys normal working hours together with such additional hours as may
reasonably be required for the proper performance of your duties.


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|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SALARY AND
BENEFITS


6.1 You will be paid a base
salary at the rate set out in a letter to you from the Company of the same date
as this Agreement and as confirmed in your annual statement of remuneration and
benefits (the Base Salary) and you will also be entitled to
the additional remuneration and benefits set out in Schedule 1.


6.2 Your Base Salary will
be paid in equal monthly instalments in accordance with the Companys
customary payroll practices for senior executives. If your Base Salary is
increased, then such increased Base Salary shall constitute Base Salary for all
purposes under this Agreement.


6.3 You are not entitled to
any other salary, fees or remuneration as director or employee of the Company or
any other Group Company save as provided herein and other than as provided in
documentation relating to your directorships of other Group Companies and you
must, as the Company directs, either waive your rights to any such salary, fees
or remuneration or account for the same to the Company failing which it will be
deducted from your salary.


6.4 For the year 2001 the
Company has procured the award to you of 565,113 Company shares under the
Reuters Discretionary Share Option Plan (the Option Plan)
and the award to you of 174,451 Company Shares under the Reuters Long Term
Incentive Plan (the Incentive Plan). The Company will
procure that in respect of each remaining Relevant Year during your Employment
you receive an equity based incentive award with a fair market value of at least
US$4,387,500 (comprising an award with a fair market value of at least
US$2,325,000 under the Incentive Plan and an award with a
fair market value of at least US$2,062,500 under the Option Plan) (such values
to be converted into sterling at the prevailing rate on the Effective Date) on
terms and conditions no less favourable than those applicable to similar awards
made to executive directors of the Company. For the purpose of calculating fair
market value under this Clause 6.4, for the calendar year ending 31 December
2001, the fair market value of a notional award of US$1.00 under the Incentive
Plan and the Option Plan was US$0.75 and US$0.29 respectively. For future
Relevant Years, such market value shall be determined by reference to the same
methodology as used to calculate fair market value for the calendar year ending
31 December 2001. Thereafter during the Employment, you will be eligible to
receive equity based incentive awards on a basis commensurate with your position
as Chief Executive Officer of the Company and the level of equity based
incentive awards made to the chief executive officers of publicly listed
companies comparable in size and industry to the Company, taking into account
all relevant circumstances, including without limitation, your performance and
the performance of the Company.


6.5 Your Base Salary and
benefits will be reviewed annually by the Remuneration Committee no later than
in December. Any change in the level of your Base Salary and benefits as a
result of the review (which will not be downwards) will be effective from 1
January of the year following the review. Your bonus opportunity as a percentage
of salary (with salary calculated in accordance with paragraph 1 of Schedule 1)
shall not be reduced below 125% in respect of the financial years 2001-2003
inclusive and shall not be reduced below 150% in respect of subsequent financial
years during your Employment and the performance criteria pursuant to which such
bonus is based shall not be materially altered to your detriment.


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|6.6 During or after the
termination of the Employment for whatever reason, the Company may deduct from
your pay any undisputed sums outstanding to the Company or to any other Group
Company from you including, without limitation, any advance of pay or loans or
floats for expenses which would become due upon such termination.


EXPENSES


7. Subject to the
Companys policies on executive directors expenses and executive
directors spouse expenses (as notified to you from time to time), the
Company will reimburse to you all reasonable travelling, hotel and other
out-of-pocket expenses (including first class travel expenses) properly incurred
by you and your spouse in the execution of the duties of the Employment against
production of valid receipts and properly completed expense reports.


OTHER INTERESTS


8.1 During the Employment
Period you will be entitled to accept appointments as a non-executive director
of companies other than a Group Company subject to:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the prior written consent of the Chairman of the Company (such consent to be
confirmed by the Board and it being understood and agreed that you currently
serve as a non-executive director of certain entities previously disclosed to
the Company); and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | the
Companys policy on non-executive directorships (as notified to you from time to
time).
|--- |  | -------------------------------------------------------------------------------------------

|You may retain any fees
received as a non-executive director. Days of service as a non-executive
director will not be deducted from your holiday entitlement provided that you
shall not spend more than ten working days in aggregate in any year in such
service. At any time during the Employment Period the Company may, with
reasonable cause, require you to resign any non-executive directorship held.
Reasonable cause for this purpose shall include but not be limited to a conflict
of interest and such other reason or reasons as may be specified in the Reuters
Code of Conduct (as notified to you from time to time).


8.2 During the Employment
Period you will not be directly or indirectly concerned in any business, trade,
profession or other occupation (whether as an employee, consultant, agent,
director or otherwise) of a similar nature to or competitive with that carried
on by the Company or any Group Companies except:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | as
a representative or officer of a Group Company;
|--- |  | --------------------------------------------------

|(b) |  | as
a non-executive director under Clause 8.1;
|--- |  | ---------------------------------------------

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|(c) |  | by virtue of your being interested in securities not representing more than (i)
one per cent of a companys issued securities of any class which are either
listed on a recognised stock exchange or dealt on an unlisted securities market
or an alternative investment market or authorised for quotation in a recognised
inter-dealer quotation system or (ii)  two per cent of a private operating
company or (iii) five per cent of a private company where such interest takes
the form of a purely passive investment, provided that you will make disclosure
of your investments as required by law or by the requirements of any regulatory
body to which the Company is subject; or
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | with
the prior written consent of the Board.
|--- |  | --------------------------------------------

|8.3 For the avoidance of
doubt, it is confirmed that, as at the date of this Agreement, you have been
given approval to retain your current interest in securities in the company(ies)
referred to in Schedule 3 to this Agreement.


8.4 You may serve on the
board of religious, charitable, civic or public service organisations or
otherwise be engaged in the activities of such organisations provided so serving
or being so engaged does not prejudice your ability to fulfil your duties under
this Agreement.


INVENTIONS AND
IMPROVEMENTS


9.1 It will be part of your normal
duties at all times:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | to consider in what manner and by what new methods or devices the products,
services, processes, equipment or systems of the Company and other Group
Companies with which you are concerned or for which you are responsible might be
improved; and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | promptly to give to the Company Secretary full details of any invention or
improvement which you may from time to time make or discover in the course of
your duties provided that any inadvertent or unintentional failure on your part
to provide such details shall not be a breach of this Agreement.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Subject to the Patents Act
1977 of England and Wales, the Company will be entitled free of charge to the
sole ownership of any such invention or improvement and to the exclusive use of
it.


9.2 You assign to the
Company (or to such other Group Company as the Company may direct) all
copyrights, designs and other proprietary rights, if any, which may be so
assigned in respect of all works and designs created by you or relating to your
responsibilities during the Employment for the full term of those rights to the
intent that those rights will immediately upon the completion of the relevant
work rest with the Company (or with such other Group Company as the Company may
direct).


9.3 At the request and cost
of the Company, you will do all such acts and things as may in the opinion of
the Board be necessary or conducive to vest such rights in the Company (or in
such other Group Company as it may direct). You irrevocably authorise the
Company for the purposes of this Clause to make use of your name and to sign and
to execute any documents or do any thing on your behalf.


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|9.4 You will not do
anything knowingly to imperil the validity of any patent or protection owned by
the Company (or in relation to which the Company is entitled to assert a right
of ownership, whether pursuant to this Clause 9 or otherwise) or any application
for any such patent or protection.


9.5 You will not either
during or after the termination of the Employment exploit or assist others to
exploit any invention or improvement owned by the Company (or in relation to
which the Company is entitled to assert a right of ownership, whether pursuant
to this Clause 9 or otherwise) which you may from time to time make or discover
in the course of your duties or (unless it shall have become public knowledge)
make public or disclose any such invention or improvement or give any
information in respect of it except to the Company or as the Company may direct.


9.6 You irrevocably waive
in favour of the Company (and in favour of such other Group Company as the
Company may direct), its licensees and successors-in-title any and all moral
rights in any works (existing or future) the subject of copyright made by you in
the course of the Employment.


CONFIDENTIALITY


10.1 During and after the
termination of the Employment you will at all times keep confidential all
private information about the Company and other Group Companies including
technical and financial information, which you may have acquired while in the
employment of the Company or of any other Group Company. You will not use such
information for your own benefit or for the benefit of any business not within
the Group. You will keep such information confidential to yourself, to other
members of the Board and to anybody who needs such information in order properly
to discharge his duties to the Company or any Group Company. Such information
includes (without limitation) the following:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the business methods and information of the Company and any other Group
Companies (including, without limitation, prices charged, discounts given to
customers or obtained from suppliers, product development, marketing and
advertising programmes, costing, budgets, turnover, sales targets and other
financial information);
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | lists
and particulars of the suppliers and customers of the Company or of any other Group
Companies and the individual contacts at such suppliers and customers;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | details
and terms of the agreements with suppliers and customers of the Company or of any other
Group Companies;
|--- |  | ----------------------------------------------------------------------------------------------------------------

|(d) |  | secret
development manufacturing or production processes and know-how employed by the Company or
any other Group Companies or their respective suppliers; and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------

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|(e) |  | confidential details as to the design of the products and inventions or
processes relating to the provision of services or developments relating to
future products and services of the Company or of any other Group Companies or
those of their respective suppliers.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2 These restrictions
shall not apply to any disclosure or use authorised by the Board, as required in
the ordinary performance of your duties or required by law or by the
requirements of any regulatory or other authority to which the Company or any
other Group Company or yourself is subject or as is reasonably necessary in
connection with any adversarial proceedings against the Company and/or Group
Company.


10.3 These restrictions
shall not apply to information which is already in the public domain other than
in cases where such information has become public as a result of a breach by you
of these restrictions.


10.4 These restrictions
shall not restrict you from using your own personal skill in any business in
which you may lawfully be engaged after termination of the Employment.


TERMINATION


Summary
dismissal


11.1 The Company may
terminate the Employment for Cause by immediate notice in writing and without
payment of any kind other than any accrued but unpaid Base Salary, Bonus (as
defined in Clause 1 of Schedule 1) and holiday pay up to the date of termination
and any other benefits or payments (including reimbursement of expenses) to
which you may be entitled under any benefit scheme of the Company or any Group
Company up to the date of termination (the Accrued
Benefits).


For the purposes of this
Agreement Cause shall mean:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | if
you commit any act or omission which constitutes:
|--- |  | ----------------------------------------------------

| |  | (i) |  | gross
misconduct; or
| |  | --- |  | --------------------

| |  | (ii) |  | persistent
misconduct continuing after demand for cessation of such misconduct is delivered in
writing by the Board or by the Company Secretary on instruction from the Board where such
act does not cease or such omission is not remedied within ten (10) days following
delivery of such written demand; or
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | if
you wilfully commit any material breach of any material provision of this Agreement;
|--- |  | ---------------------------------------------------------------------------------------

|(c) |  | if you wilfully neglect or refuse to carry out any material part of your duties
(other than for a reason set forth in Clause 11.2) and which is not remedied by
you, if capable of remedy, within ten (10) days following written notice by the
Board of its intention to terminate the Employment under this sub-Clause (c);
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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|(d) |  | if you engage (either in bad faith or intentionally and with recklessness as to
the consequences of your actions) in any conduct which materially damages the
reputation of the Company or any other Group Companies;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | if you become prohibited by law from being a director of the Company due to your
misconduct (including by virtue of your having committed an offence under
section 213 or 214 of the Insolvency Act 1986); or
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | if
you terminate your directorship of the Company without Good Reason or without the consent
of the Board.
|--- |  | ----------------------------------------------------------------------------------------------------------

|For purposes of this Clause
11.1, no act, or failure to act, by you shall be considered to have been done or
omitted to be done wilfully unless committed in bad faith or without
a reasonable degree of skill or care or without a reasonable belief that the act
or omission was in the best interests of the Company or any Group Company.


Cause shall not exist under
sub-Clauses (a), (b), (c) or (d) unless and until the Company has delivered to
you a copy of a resolution duly adopted by a majority of all the members of the
Board at a quorate Board meeting (such majority and quorum to exclude you)
called and held for such purpose (after not less than three business days
notice to you and an opportunity for you and, where the Board agrees in advance,
your counsel, to be heard before the Board) finding that Cause exists.


Termination by
the Company through illness or death


11.2 The Company may
terminate the Employment if you are prevented by illness (including mental
illness) or injury from attending to your duties for more than 365 days in
aggregate in any one period of twenty four (24) consecutive calendar months. The
Company will not terminate the Employment pursuant to this Clause 11.2 if,
as a result, you would or may forfeit any entitlement to benefits under the
permanent health insurance arrangements referred to in Schedule 1 unless it can
procure the provision of continued cover under those arrangements or reimburse
you the cost of premiums for continued cover under those arrangements or under
other arrangements providing substantially similar cover for the period of the
illness in question or until benefits would apart from such termination have
ceased to be payable had the Employment continued or until you obtain permanent
health insurance cover from a subsequent employer, whichever is the shortest
period. Upon such termination of Employment or due to your death, the Company
shall pay you the Accrued Benefits and you shall be entitled to the benefits
provided for in Clause 11.12.


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|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Termination by
the Company without Cause


11.3 The Company may
terminate the Employment without Cause by giving you 30 days advance
written notice. Upon such termination of Employment, the Company shall pay you
the aggregate of (i) the Accrued Benefits and (ii) the Cessation Compensation in
cash in accordance with Clause 11.7 and (iii) you shall be entitled to the
benefits provided for in Clause 11.12. In addition, the Company shall maintain
in full force and effect, for the continued benefit of you, your spouse and your
children for a period of one year following the date of termination the medical,
hospitalisation, dental, and life insurance schemes in which you, your spouse
and your children were participating immediately prior to the date of
termination at the level in effect and upon substantially the same terms and
conditions (including without limitation contributions required by you for such
benefits) as existed immediately prior to the date of termination. If you, your
spouse or your children cannot continue to participate in the Company schemes
providing such benefits, the Company shall arrange, at its discretion, either to
provide you, your spouse and your children with the cash equivalent of such
benefits which they otherwise would have been entitled to receive under such
schemes or to pay the premiums to enable continued participation in equivalent
schemes for a period of one year following the date of termination. The
Companys obligation to provide continuing arrangements in relation to
medical, hospitalisation, dental and life assurance schemes under this Clause
11.3 shall terminate on the date or dates you receive equivalent cover and
benefits, without waiting period or pre-existing condition limitations under the
schemes of a subsequent employer (such cover and benefits to be determined on a
cover by cover and benefit by benefit basis). If you obtain cover or benefits
relating to medical, hospitalisation, dental and life insurance schemes from a
subsequent employer which are less generous than those provided to you by the
Company, you shall be entitled from the Company only to the difference between
the cover or benefits you obtain from a subsequent employer and those to which
you would have been entitled hereunder had no subsequent employer provided cover
or benefits. You will use all reasonable endeavours to obtain equivalent cover
and benefits from a subsequent employer. Once equivalent cover and benefits have
been obtained from such subsequent employer, the Companys obligations to
provide such cover and benefits for such one year period shall cease absolutely.
For the purpose of this Clause 11.3, the reference to children means children up
to the age of 21 or, if older and if they are in full time education, until they
finish their education.


Termination
through loss of directorship


11.4 If you are removed
from the office of director of the Company, or the Company fails in general
meeting to re-elect you as a director of the Company (including if, under the
Articles of Association or other constitutional documents for the time being of
the Company, you are obliged to retire by rotation or otherwise), then the
Company may elect that the Employment shall terminate immediately without
prejudice to the right of either party to this Agreement to treat any act or
omission causing such removal from office as a breach of this Agreement. For the
avoidance of doubt, it is acknowledged that termination of the Employment
pursuant to this Clause 11.4 where removal from office has not taken place in
circumstances justifying dismissal for Cause under Clause 11.1 constitutes a
termination of the Employment without Cause for the purpose of Clause 11.3.


Termination by
you without Good Reason


11.5 You may terminate the
Employment without Good Reason (as defined below) by giving the Company ninety
(90) days advance written notice. In such event, you will be entitled to
the same payments as described in Clause 11.1.


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|Termination by
you with Good Reason


11.6 You may terminate the
Employment by giving the Company thirty (30) days advance written notice,
such notice to be given within ninety (90) days after:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | in the case of a Good Reason event which is incurable, the date on which the
Good Reason event occurs (provided that such thirty (30) days notice is
not required for an event described in sub-Clause (iv) of the definition of Good
Reason below); and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | in the case of a Good Reason event which is curable but which is not cured
within thirty (30) days of you giving written notice to the Company specifying
the Good Reason event and requiring it to be cured, the date falling thirty (30)
days after the date of such notice to the Company.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Upon such a termination of
Employment, you will be entitled to the same payments as in the case of a
termination of Employment by the Company without Cause (as described in Clause
11.3).


Good Reason
shall mean, without your written consent, any of the following events:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(i) |  | the assignment to you of any duties inconsistent in any respect with your
position (including status, offices, titles and reporting requirement),
authority, duties or responsibilities or any other action by the Company (or its
successors or assigns) which results in material diminution in such position,
authority, duties or responsibilities (including, for the avoidance of doubt,
your responsibilities as the Chief Executive Officer of a publicly listed
company), but excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by you;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(ii) |  | any material breach of any material provision of this Agreement by the Company
(or its successors or assigns), including, without limitation, a reduction in
your Base Salary, reduction in your bonus opportunity as a percentage of salary
or the material alteration to your detriment of the performance criteria
pursuant to which such Bonus is calculated, a failure of the Company (or its
successors or assigns) to make the equity grants contemplated under Clause 6.4,
or the Companys (or its successors or assigns) failure to
provide in all material respects the indemnification in Clause 8 of Schedule 1;
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(iii) |  | any
required relocation of you outside London or New York City; and
|----- |  | -------------------------------------------------------------------

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|(iv) |  | a Change of Control unless a third party acquiring control of more than 50% of
the voting rights of the Company for the purposes of the definition of Change of
Control in this sub-Clause (iv) has agreed to adopt the Reuter Trust, the Reuter
Trust Principles and the rights and duties of the Reuter Trustees as set out in
the Memorandum and Articles of Association of the Company and in the Memorandum
and Articles of Association of Reuters Founders Share Company Limited and to use
its best endeavours to procure that the Principles and such rights and duties
are observed and upheld within the Company and any holding company of the
Company and a Change of Control shall for the purpose of this Agreement occur
where more than 50% of the voting rights of the Company become controlled by any
third party (including persons acting in concert but excluding Reuters Founders
Share Company Limited) or the Company sells or otherwise disposes of all or
substantially all of its assets with the approval of the Companys
shareholders, other than for the purposes of a reconstruction or reorganisation
in which (A) the ultimate ownership of the Company or substantially all its
assets is unaffected or (B) a new holding company for the Company is created,
where the new holding company has substantially the same shareholders and
proportionate shareholdings as those of the Company immediately prior to the
interposition of the new holding company.
|---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Cessation
Compensation


11.7 For the purpose of Clause 11.3
and 11.6:
|----------------------------------------------------------------------

|(a) |  | Cessation Compensation means: (i) if the Employment is
terminated after the Effective Date but on or before the second anniversary of
the Effective Date, the product of two and the Relevant Sum; or (ii) if the
Employment is terminated after the second anniversary of the Effective Date but
on or before the third anniversary of the Effective Date, the product of 1.67
and the Relevant Sum; or (iii) if the Employment is terminated after the
third anniversary of the Effective Date but on or before the fourth anniversary
of the Effective Date, the product of 1.33 and the Relevant Sum; or (iv) if
the Employment is terminated after the fourth anniversary of the Effective Date,
the Relevant Sum;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Relevant
Summeans the sum of your Base Salary and Relevant Bonus;
|--- |  | -----------------------------------------------------------------

|(c) |  | Relevant Bonus means H x (I% x Base Salary) where H is the
highest percentage of bonus which you have received in the three years prior to
the year in which the Employment terminates (including, if relevant, periods
prior to the Effective Date) and I is the maximum percentage of Base Salary
earnable as bonus in the year of termination. For example, if you are eligible
to a bonus of 125% of a Base Salary of £1,000,000 and in the last three
years you have received 100%, 90% and 50% of your bonus respectively, your
relevant bonus will be £1,250,000.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Other than in respect of
your rights under Clause 11.12, you agree that any payment of Cessation
Compensation made to you pursuant to Clause 11.3 or 11.6 will be in full
and final settlement of any claim which you might otherwise have against the
Company and against any other Group Company for damages for wrongful dismissal
and the parties agree that the Cessation Compensation represents a genuine
pre-estimate of the loss which would otherwise have been suffered by you.


Page
11
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|The payment to be made to
you pursuant to Clause 11.3 or 11.6 will be made in two stages. The total
amount, less a deduction of £60,000, will be paid within seven
(7) days of the termination of the Employment. The remaining balance of
£60,000 will be paid within four months of the termination of the
Employment, conditional upon you not having bought any claims before a court or
tribunal against the Company or any other Group Company or any of their
respective officers and employees in connection with the Employment or its
termination in or prior to that four month period.


Mitigation


11.8 You shall not be
required to mitigate amounts payable under this Clause 11 by seeking other
employment or otherwise, and there shall be no offset against amounts due to you
under this Clause 11 on account of subsequent employment save as provided
herein. Additionally, amounts owed to you under this Clause 11 shall not be
offset by any claims the Company may have against you and, subject to Clause
6.5, the Companys obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder, shall not be
affected by any other circumstances including, without limitation, any
counterclaim, recoupment, defence or other right which the Company may have
against you or others.


Return of
documents


11.9 On termination of the
Employment for any reason or, at the request of the Company, when notice to
terminate the Employment is given, you must immediately deliver to the Company
(without keeping any copies):
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | all
documents, papers and materials and any other property of the Company and of any other
Group Companies; and
|--- |  | ---------------------------------------------------------------------------------------------------------------

|(b) |  | all
documents or other media on which confidential information about the Company and any
other Group Companies is recorded,
|--- |  | ---------------------------------------------------------------------------------------------------------------------------

|in your possession or under your
control.


Resignation as
a director


11.10 On termination of the
Employment for any reason, you must immediately, at the request of the Company,
resign your office as a director of the Company and of any other Group Company
without compensation for loss of office other than as provided in this
Agreement.


Share schemes


11.11 It is acknowledged
that you may, during the Employment, be granted rights upon the terms and
subject to the conditions of the rules from time to time of the Reuters Group
PLC Long Term Incentive Plan or any other profit sharing, share incentive, share
option, bonus or phantom option scheme operated by the Company or any other
Group Company with respect to shares in the Company or any other Group Company.
Subject to Clause 11.12, if on termination of the Employment, whether lawfully
or in breach of contract you lose any of the rights or benefits under such
schemes (including rights or benefits which you would not have lost had the
Employment not been terminated) you shall not be entitled, by way of
compensation for loss of office or otherwise howsoever, to any compensation for
the loss of any rights under any such scheme.


Page
12
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|11.12 Notwithstanding
Clause 11.11, if the Employment is terminated in any of the circumstances
described in Clause 11.2, 11.3 or 11.6 or by reason of your death or where
it is terminated pursuant to Clause 11.4 in circumstances where such termination
constitutes a termination of the Employment without Cause for the purpose of
Clause 11.3, the Company will procure that you shall retain all awards made
under the Companys or any Group Companys equity plans or programs,
including, without limitation, the awards under Clause 6.4 hereof (the
Equity Plans) granted to you (including without limitation
in the form of options shares or share rights) which have not vested or
crystallised at the date of termination and shall in respect of the subsequent
vesting or crystallisation of such awards (including through any extension of
the applicable vesting period) and their exercise or release be treated as
though you had continued in Employment. In addition, notwithstanding the terms
and conditions of the Equity Plans to the contrary, with respect to the
retention, vesting and/or crystallisation of such awards your personal conduct
following your termination of Employment will not in any way affect your right
to continue to retain, vest or crystallise with respect to such awards, provided
that the terms or conditions of the Equity Plans relating to the performance
conditions pursuant to which such awards vest and crystallise shall continue to
apply. Should it not be possible to treat you as if you are a continuing
employee in respect of the vesting, crystallisation, exercise or release of any
awards under the Equity Plans, the Company will procure that all your awards
vest (and/or crystallise, as the case may be) in full and become exercisable on
termination of Employment regardless of any conditions relating to status,
personal conduct or otherwise, and in the case of options shall remain
exercisable for at least 6 months following termination of employment.


SUSPENSION


12.1 The Board may at any
time or from time to time suspend you from the performance of your duties and/or
exclude you from any of the premises of the Company or of any other Group
Company in circumstances in which the Board reasonably believes that you have
committed gross misconduct or are in material breach of a material provision of
this Agreement and in order that the circumstances giving rise to that belief
may be investigated. You shall be suspended for such period as the Board
considers reasonably necessary for it to undertake a proper investigation but in
any event for no longer than ninety (90) consecutive days. At the end of such
ninety (90) day period, the Company will procure that you are either reinstated
in your post as Chief Executive Officer or that your Employment is terminated.
The Company will give you a reason for suspending or excluding you. Your salary
and benefits will not cease to be payable by reason only of such suspension or
exclusion.


12.2 During any period of
suspension or exclusion, you will not contact or deal with customers, suppliers
or employees of the Company or of any other Group Company or enter onto the
premises of the Company or of any Group Company without the prior written
consent of the Chairman of the Company. You will be entitled to terminate the
Employment without Good Reason pursuant to Clause 11.5 but without the
requirement to give the Company ninety (90) days advance written notice.
Any rights you might otherwise have to terminate this Agreement pursuant to
Clause 11.6 shall not be affected during any period of suspension or exclusion
(although you acknowledge that such suspension or exclusion shall in and of
itself not constitute Good Reason pursuant to Clause 11.6).


Page
13
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|CONTINUING
OBLIGATIONS


Non-representation


13.1 You will not at any
time after the termination of the Employment directly or indirectly represent
yourself as being in any way connected with or interested in the business of the
Group (except, if it is the case, as a shareholder of the Company or as a
director of the Company).


Non-solicitation
of employees


13.2 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company or
employ or engage any employee of the Company or of any other Group Company with
whom you had business dealings or who reported to you, directly or indirectly,
during the period of 12 months preceding the date of termination of the
Employment and who is or was employed or engaged by the Company or by any other
Group Company:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | as
a director or in a managerial or technical capacity; or
|--- |  | ----------------------------------------------------------

|(b) |  | who you know (or ought reasonably to know) could materially damage the interests
of the Company or any other Group Company if he became employed in any business
in competition with the business of the Company or of any other Group Company.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Non-solicitation
of business


13.3 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company the
business of any firm, company or other person who, during the period of 12
months preceding the date of termination of the Employment, was a customer of
the Company or of any other Group Company with whom you had business dealings or
about whom you became informed or over whom you had influence in the course of
the Employment during that period, with a view to providing goods or services
which would compete with the business of the Company or of any other Group
Company carried on at the date of termination of the Employment and with which
you were materially involved during that period for the account or benefit of
any other business concern of which you are a sponsor or promoter and which is
in competition with the business of the Company or any Group Company.


Page
14
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Non-dealing


13.4 You must not for a
period of six months after the termination of the Employment deal with any
person, firm or company who during the period of 12 months preceding the date of
termination of the Employment was a customer or potential customer of the
Company or of any other Group Company and (in the case of a customer) to whom
you provided services on behalf of the Company or any other Group Company or (in
the case of a potential customer) with whom you had business dealings with a
view to obtaining business for the Company or any other Group Company and in
each case with whom you had business dealings or about whom you became informed
or over whom you had influence in the course of the Employment during that
period, with a view to providing goods or services which would compete with the
business of the Company or of any other Group Company carried on at the date of
termination of the Employment and with which you were materially involved during
that period for the account or benefit of any business concern referred to in
Clause 13.5 or for the account of any other business concern of which you are a
sponsor or promoter and which is in competition with the business of the Company
or any Group Company.


Non-competition


13.5 You must not, for a
period of six months after the termination of the Employment, be engaged in or
concerned in any capacity in any business concern which is in competition with
the business of the Company or of any other Group Company. A list of such
business concerns as at the dateof this Agreement is set out in Part 1
of Schedule 2 to this Agreement. Unless you have the prior approval of the
Chairman of the Company you may not, for a period of six months after the
termination of the Employment, be engaged in or concerned in any capacity in any
of the business concerns named in the lists set out in Parts 2 and 3 of Schedule
2 to this Agreement. The lists in Schedule 2 may be amended by the Board acting
reasonably (provided that the number of business concerns included in Schedule 2
at any one time shall not exceed 15) and each such amendment shall be notified
to you from time to time. This Clause shall not restrain you from being engaged
or concerned in any business concern in so far as your duties or work relate
solely to services or activities of a kind with which you were not concerned to
a material extent during the period of six months preceding the date of
termination of the Employment.


Extension to
other persons


13.6 The obligations
imposed on you by this Clause 13 extend to you acting not only on your own
account but also on behalf of any other firm, company or other person and shall
apply whether you act directly or indirectly.


Acknowledgement
of reasonableness


13.7 The restrictions
contained in this Clause 13 are considered by you and the Company to be
reasonable in all the circumstances. Each part of this Clause constitutes an
entirely separate and independent restriction and the duration, extent and
application of each of the restrictions are not greater than is necessary for
the protection of the commercial interests of the Group and their stable trained
workforce.


Page
15
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|No disparaging
statements


13.8 Each party agrees (and
in the case of the Company, it shall use reasonable endeavours to cause its
executives, officers, employees, directors, agents and consultants) during, and
after termination of, your Employment not to make, publish or in any other way
communicate or cause to be made, published or issued or otherwise communicate to
any third party any disparaging or derogatory statements to any third party
concerning you or the Company or any Group Company or any of its or their
current executives, officers, employees, agents or consultants provided that
nothing in this Agreement will prevent you or the Company or any Group Company
from disclosing information as required by law or in order to take professional
advice or as ordered by a court of competent jurisdiction.


GRIEVANCE
PROCEDURE


14. Without limiting your
rights to terminate the Employment with Good Reason pursuant to Clause 11.6 or
to enforce any of the terms of this Agreement in accordance with Clause 19
directly without regard to this Clause 14, if at any time you have a grievance
relating to the Employment, you may seek redress orally or in writing by, in the
first instance, referring the grievance to the Chairman of the Company. If the
grievance remains unresolved, you may appeal to the Board and the Board shall
deal with the matter by discussion and by majority decision of those present at
the relevant meeting of the Board. The Boards decision shall be final and
binding with respect to the grievance procedure save that if you are not
satisfied with the decision of the Board, you may pursue an action in a manner
contemplated by Clause 19.


WAIVER


15. Any delay or forbearance by the
Company or you in exercising any right of determination of this Agreement shall not
constitute a waiver of it.


AMENDMENTS


16. No amendment or waiver of any of
the provisions of this Agreement shall be effective unless made in writing and signed by
you and a Director of the Company.


NOTICES


17. Any notice to be given
under this Agreement to you may be served by being handed to you personally or
by being sent by recorded delivery first class post or by fax to you at an
address for service within the United Kingdom nominated by you for this purpose;
and any notice to be given to the Company may be served by being marked for the
attention of the Company Secretary and by being left at or by being sent by
recorded delivery first class post or by fax to its registered office for the
time being. Any notice served by post shall be deemed to have been served on the
second day (excluding Sundays and statutory holidays) next following the date of
posting and in proving such service it shall be sufficient proof that the
envelope containing the notice was, in your case, addressed to you at an address
for service within the United Kingdom nominated by you for these purposes and,
in the case of the Company, addressed to it marked for the attention of the
Company Secretary at its registered office for the time being, and in either
case posted as a prepaid letter by recorded delivery. Any notice served by fax
shall be deemed to have been served twelve hours after the time of despatch.


Page
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|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|OTHER
AGREEMENTS


18. You acknowledge and
warrant that there are no agreements or arrangements whether written, oral or
implied between the Company or any other Group Company and you relating to your
employment or the Employment other than the Side Letter and those which are
expressly set out or referred to in this Agreement and that you are not entering
into this Agreement in reliance on any representation not expressly set out in
this Agreement.


GOVERNING LAW


19. This Agreement will be
governed by and construed under English Law without regard to its conflicts of
laws provisions, and each of the parties hereby irrevocably agrees that the
Courts of England are to have jurisdiction to settle any disputes which may
arise out of or in connection with this Agreement.


WITHHOLDING OR
DEDUCTIONS FOR TAX


20. All amounts payable to
you under this Agreement shall be subject to applicable withholding or
deductions of income, salary and such other withholdings or deductions which the
Company reasonably determines are required to be withheld or made in accordance
with applicable laws.


AS WITNESSwhereof
this Agreement has been signed by or on behalf of the parties to it on the day
and year first above written.



Page
17
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SCHEDULE 1


OTHER
BENEFITS


BONUS


1. You will be entitled to
participate in an annual bonus plan to be administered by the Remuneration
Committee. Unless otherwise agreed by the Remuneration Committee, the annual
bonus (the Bonus)payable under this plan will be an amount
of up to 150% of your Base Salary provided that in respect of 2001, 2002 and
2003 financial years, the Bonus will be an amount of up to 125% of your Base
Salary. The criteria relating to your performance and that of the Company which
are to be used to determine the amount of the bonus in any year will be laid
down by the Remuneration Committee at the commencement of each year and the
bonus for that year will be paid as soon as reasonably practicable after the
relevant results have been determined. The Remuneration Committee reserves the
right to amend the quantitative criteria annually, subject to your right to
terminate for Good Reason (as defined in your Service Agreement) in the event of
a material amendment to your detriment. On termination of the Employment during
a financial year, other than termination pursuant to Clause 11.1 or
Clause 11.5 or as otherwise provided under Clause 11.7, you shall be
entitled to a pro-rated amount of average Bonus, being such proportion of the
average bonus you have received in the three years prior to the year in which
the Employment terminates as is equivalent to the proportion of the financial
year during which the Employment has subsisted.


HOLIDAYS


2.1 The Companys
holiday year runs from 1 January to 31 December. In addition to the bank and
other public holidays, you will be entitled to 30 working days paid
holiday and three personal days in each holiday year.


2.2 Your annual holiday may
be taken at such time or times as are reasonably appropriate having regard to
the business needs of the Company.


2.3 Holidays not taken in
the year of entitlement will be lost unless carried forward with the agreement
of the Chairman of the Company.


2.4 On termination of the
Employment, you will be entitled to pay in lieu of any unpaid holiday or be
required to pay the Company any salary received for holiday taken in excess of
your contractual entitlement.


PENSION PLANS


3. During the Employment
Period, you will be provided with pension and retirement benefits appropriate to
your senior executive status in the Company and which are no less favourable
than those for the majority of executive Directors. For this purpose, you and
the Company shall work to provide such benefits in a manner which is tax
efficient to both parties.


Page
18
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|LONG TERM
INCENTIVE PLAN


4. Subject to Clause 11.13
of the Service Agreement, you are entitled to be a member of the Reuters Group
PLC Long Term Incentive Plan (as notified to you from time to time) (or any plan
operated by the Company in succession to that plan) for so long as such plans
may be operated by the Company, and the Company shall pay to you benefits under
these plans, subject to the conditions of the Companys policy on retention
of LTIP awards on early retirement (as notified to you from time to time).


MEDICAL/DISABILITY
INSURANCE


5.1 You shall be entitled
to membership of the Companys Medical, Dental and Eye Care plans, subject
to the terms of the plans and of any related policies of insurance as in force
from time to time.


5.2 You shall be entitled
to membership of the Companys disability insurance plans, subject to the
terms of those plans and of any related policies of insurance as in force from
time to time.


LIFE ASSURANCE


6. You are entitled to
membership of the Companys Basic Life Assurance, Accidental Death and
Dismemberment Insurance and Supplemental Life Assurance Plans, subject to the
terms of the plans and of any related policy of insurance as in force from time
to time.


COMPANY CAR


7. The Company will provide
you with a monthly car allowance subject to the Companys Policy on
Executive Directors Cars which shall be payable in instalments with Base
Salary pursuant to Clause 6.2.


DIRECTORS
INDEMNITY AND INSURANCE


8.1 During the Employment Period and
thereafter, you shall have the benefits of:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | a complete indemnity for all and any liabilities incurred by you (including,
without limitation, all legal expenses reasonably incurred by you) in your
capacity as an officer, director or employee of the Company or any other Group
Company to the fullest extent provided in the constitutional documents of the
Company or any Group Company for all acts or omissions on your part whilst
acting as a director, officer or employee of the Company or such other Group
Company (to the extent such indemnity is permitted by the law of the country to
which the relevant Company or Group Company is subject); and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | (subject to their terms) any insurance policies which shall be maintained by the
Company in respect of liabilities incurred by Group Company directors officers
and employees in their capacity as such.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page
19
|-------

|The obligations of the
Company under Clauses 8.1 and 8.2 shall survive termination of the Employment
and shall not be offset by any liquidated damages contemplated under this
Agreement.


8.2 During the Employment
Period and thereafter, the Company shall procure that you have (to the extent
such indemnity is permitted by applicable law) a complete indemnity for all any
liabilities incurred by you (other than where such liability arises out of or
relates to the commission by you of a criminal offence or any wilful default or
gross negligence) in your capacity as an officer or director of any company or
similar entity that is not a member of the Group, where such directorship or
office is held by you at the request of the Company.


8.3 You are entitled to
take independent professional advice, at the expense of the Company, where such
advice is reasonably required for the furtherance of your duties as a director
of the Company. No prior approval is required to obtain advice costing up to
£5,000. Before seeking advice that is likely to cost more than
£5,000 you must obtain the written consent of at least one non-executive
director and send a copy of such consent to the Company Secretary. The
non-executive director shall have power to set a reasonable limit on the cost
you may incur on obtaining independent advice at the Companys expense
without further reference to him.


OTHER BENEFITS


9.1 During the Employment Period the
Company will meet or reimburse you for:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | a relocation bonus of US$750,000, less any portion of such amount previously
paid to you by the Company or any other member of the Group (and further subject
to deductions for income tax);
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | an annual expatriate bonus in such amount as is specified in the annual
statement of remuneration and benefits referred to in Clause 6.1 of the
Agreement (less deductions for income tax);
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | relocation
costs which you reasonably incur in relocating from New York to London;
|--- |  | ----------------------------------------------------------------------------------

|(d) |  | any
reasonable costs incurred by you in seeking legal and financial advice in relation to
this Agreement; and
|--- |  | -------------------------------------------------------------------------------------------------------------

|(e) |  | the cost of business class travel from New York to London (and return) five
times a year for your spouse, children and nanny.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------

|9.2 |  | The Company will provide you with a licence to occupy property at 32 Hyde Park
Gate, London SW7, or similar accommodation acceptable to you, free of charge.
The licence shall be revocable by the Company at any time and, in any event, no
later than 31 March 2004. However, if the licence is revoked you will, in
respect of the period between the date of revocation and 31 March 2004 be
paid a housing allowance at an annual rate of £381,316. After
31 March 2004, the Company will, at its election, either continue to
provide you with a licence to occupy suitable accommodation acceptable to you,
or will pay you a housing allowance of US$447,733 per annum (such amount to be
converted into sterling at the prevailing rate on the Effective Date) in respect
of your accommodation costs.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page
20
|-------

|
|

|9.3 |  | You shall have such other benefits as may be made available to you by the
Company from time to time, including but not limited to the use of Reuters
products, mobile telephone and other equipment and membership of professional
bodies.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.4 |  | During the Employment Period, the Company shall reimburse your reasonable
personal financial and tax planning and preparation and filing expenses.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|9.5 |  | Following the termination of the Employment for any reason, the Company shall
reimburse you (or your estate or beneficiaries) for all reasonable expenses
incurred by you (or your family in the event of your death or incapacity) to
relocate from your new location to anywhere in the United States.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page
21
|-------

|SCHEDULE 2


COMPETING
BUSINESS CONCERNSAS AT THE DATE OF THIS AGREEMENT


Part 1


Competing Business
Concerns as at the date of this Agreement
|------------------------------------------------------------------------------------------------------------------------------------------------

| | Bloomberg
L.P.
| | --------------

| | Bridge
Information Systems (or any successor in business or assign to the European business of
Bridge Information Systems)
| | --------------------------------------------------------------------------------------------------------------------------

| | Pearson
PLC
| | -----------

| | Quick
Corporation of Japan
| | --------------------------

| | AOL
TimeWarner
| | --------------

| | Telekurs
A.G.
| | -------------

| | SunGard
| | -------

| | The
Electronic Broking Service
| | ------------------------------

|Part 2


Companies with
Divisions which compete with Reuters
|------------------------------------------------------------

| | The
Thomson Corporation
| | -----------------------

| | The
McGraw Hill Companies
| | -------------------------

| | The
Dun & Bradstreet Corporation
| | --------------------------------

| | Reed
Elsevier P.L.C./Elsevier N.V.
| | ----------------------------------

|Part 3


Companies
with which Reuters has Strategic Relationships
|-----------------------------------------------------------------

| | Multex.com,
Inc.
| | ----------------

| | Yahoo!
Inc.
| | -----------

|Page
22
|-------

|SCHEDULE 3


PERMITTED SHAREHOLDINGSAS
AT THE DATE OF THIS AGREEMENT
|--------------------------------------------------------------------

| | SDK
Investments, LLC
| | --------------------

| | Giant
Bear Inc.
| | ---------------

|Page
23
|-------

|
|

|SIGNED byfor and on behalf ofREUTERS GROUP PLCin the presence of:- | ) )  Sir Christopher Hogg))
|------------------------------------------------------------------ | ---------------------------

|SIGNED as
a DEEDand DELIVERED byTHOMAS HENRY GLOCERin the presence of :- | ))))
|------------------------------------------------------------------------ | ----

|Page
24
|-------

|________________________2001
REUTERS
GROUP PLCPHILIP GREEN
SERVICE AGREEMENT
|----------------------------------------------------------------------------

|TABLE OF
CONTENTS
|-----------------

|    |  | Page                       
|--- |  | ---------------------------
|    |  |                            
|1.  |  | Definitions                
|    |  |                            
|2.  |  | Duration of employment     
|    |  |                            
|3.  |  | Role, Powers and Duties    
|    |  |                            
|4.  |  | Normal Place of Work       
|    |  |                            
|5.  |  | Hours of Work              
|    |  |                            
|6.  |  | Salary and Benefits        
|    |  |                            
|7.  |  | Expenses                   
|    |  |                            
|8.  |  | Other Interests            
|    |  |                            
|9.  |  | Inventions and Improvements
|    |  |                            
|10. |  | Confidentiality            
|    |  |                            
|11. |  | Statutory Provisions       
|    |  |                            
|12. |  | Termination                
|    |  |                            
|13. |  | Garden Leave and Suspension
|    |  |                            
|14. |  | Continuing Obligations     
|    |  |                            
|15. |  | Waiver                     
|    |  |                            
|16. |  | Amendments                 
|    |  |                            
|17. |  | Notices                    
|    |  |                            
|18. |  | Other Agreements           
|    |  |                            
|19. |  | Governing Law              
|    |  |                            
|20. |  | Withholding Taxes          
|    |  |                            

|            |  |                                
|----------- |  | -------------------------------
|SCHEDULE 1: |  | Other Benefits                 
|            |  |                                
|SCHEDULE 2: |  | Additional Statutory Provisions
|            |  |                                
|SCHEDULE 3: |  | Competing Business Concerns    

|THIS AGREEMENT is made on 20th June
2001


BETWEEN


(1) REUTERS GROUP PLC registered in
England with No. 3296375 whose registered office is at 85 Fleet Street, London, EC4P 4AJ
(the Company); and


(2) PHILIP GREENof
Flat 20, Lewcos House, 57-63 Regency Street, London SW1P 4AF
(you).


IT IS AGREED as follows:


DEFINITIONS


1. In this Agreement the following
expressions shall have the following meanings:


Board
means the board of directors of Reuters Group PLC or a duly constituted
committee of the board of directors;


Employmentmeans your employment in
accordance with the terms and conditions of this Agreement;


Groupmeans the Company, any holding company of the Company and any
subsidiary of the Company or of any such holding company (with holding company
and subsidiary having the meanings given to them by section 736 of the
Companies Act 1985). Group Company and Group
Companies shall be construed accordingly; and


Remuneration
Committee means the remuneration committee of the Board.


DURATION OF
EMPLOYMENT


2. The Employment will
begin on the date of this Agreement and will continue until terminated in
accordance with Clause 12 below.


ROLE, POWERS
AND DUTIES


3.1 You will serve the
Company as Chief Operating Officer, or in such other capacity of a like status
as the Company may require.


3.2 Subject to Clause 4,
you will exercise such powers and perform such duties in relation to the
business of the Company and the Group, being duties which are appropriate to
your senior status, as may be assigned to you by the Chief Executive of the
Company after taking into account the opinion of the Board.


3.3 During the Employment you will:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | devote
substantially the whole of your working time, attention and abilities to carrying out
those duties in a proper, loyal and efficient manner;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|(b) |  | use
all reasonable endeavours to promote the interests of the Company and any other Group
Company which you may be required to serve under the terms of this Agreement;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | have due regard to the Reuters Trust Principles and to the rights and duties of
the Reuters Trustees as set out in the Memorandum and Articles of Association of
the Company and the Memorandum and Articles of Association of Reuters Founders
Share Company Limited insofar as, by the proper exercise of your powers (and in
accordance with your other duties) as director of the Company, the Reuters Trust
Principles are capable of being observed by you;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | have due regard to the provisions of the Reuters Code of Conduct (as notified to
you from time to time) and, so far as reasonably practicable in the performance
of your duties, observe all material provisions of that Code;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | comply
with the Reuters Share Dealings Code (as notified to you from time to time); and
|--- |  | ---------------------------------------------------------------------------------------

|(f) |  | have
due regard to the provisions of all other policies which are applied to you by the
Company, as notified to you from time to time.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------

|3.4 You are entitled to
take independent professional advice, at the expense of the Company, where such
advice is reasonably required for the furtherance of your duties as a director
of the Company and provided that before taking such advice you obtain the
written consent of one other director and send a copy of such consent to the
Company Secretary and that the Companys expenditure on such advice does
not exceed £50,000 per annum.


NORMAL PLACE
OF WORK


4. Your normal place of
work is at the Companys head office. You may be required, in the
performance of your duties, to travel in the United Kingdom and overseas.
However, having given you reasonable notice, the Company may reasonably require
you to perform your duties at the offices of another Group Company in a major
financial centre outside the United Kingdom, such as New York, in which case you
shall be offered expatriate benefits appropriate to your senior status.


HOURS OF WORK


5. You will work the
Companys normal working hours together with such additional hours as may
reasonably be required for the proper performance of your duties.


SALARY AND
BENEFITS


6.1 You will be paid a
salary at such rate as is set out in an annual letter to you from the Company
and as confirmed in your annual statement of remuneration and benefits.


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|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2 Your salary will accrue
from day to day and be payable in arrears by equal monthly instalments on or
about the fifteenth day of each month.


6.3 You are not entitled to
any other salary or fees as director or employee of the Company or any other
Group Company and you must, as the Company directs, either waive your rights to
any such salary or fees or account for the same to the Company (failing which it
will be deducted from your salary).


6.4 Your salary and
benefits will be reviewed annually by the Remuneration Committee. Any change in
the level of your salary and benefits as a result of the review (which will not
be downwards) will be effective from 1 January of the year following the review
(unless you and the Chairman of the Remuneration Committee agree otherwise).


6.5 In addition to the
above, you will be entitled to receive those benefits set out in Schedule 1 to
this Agreement.


6.6 During or after the
termination of the Employment for whatever reason, the Company may deduct from
your pay any sums outstanding to the Company or to any other Group Company from
you including, without limitation, any advance of pay or loans or floats for
expenses.


EXPENSES


7. Subject to the
Companys policies on executive directors expenses and executive
directors spouse expenses (as notified to you from time to time), the
Company will reimburse to you all reasonable travelling, hotel and other
out-of-pocket expenses (including first class travel expenses) properly incurred
by you and your spouse in the execution of the duties of the Employment against
production of valid receipts and properly completed expense reports.


OTHER INTERESTS


8.1 During the Employment
you will be entitled to accept appointments as a non-executive director of
companies other than a Group Company subject to:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the
prior written consent of the Chief Executive of the Company (such consent to be confirmed
by the Board); and
|--- |  | ----------------------------------------------------------------------------------------------------------------

|(b) |  | the
Company's policy on non-executive directorships (as notified to you from time to time).
|--- |  | -------------------------------------------------------------------------------------------

|You may retain any fees
received as a non-executive director provided they are paid in cash rather than
in stock, other securities or options. Days of service as a non-executive
director will not be deducted from your holiday entitlement provided that you
shall not spend more than ten working days in aggregate in any year in such
service. At any time during the Employment the Company may, with reasonable
cause, require you to resign any non-executive directorship held. Reasonable
cause for this purpose shall include but not be limited to a conflict of
interest and such other reason or reasons as may be specified in the Reuters
Code of Conduct (as notified to you from time to time).


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|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.2 During the Employment
you will not be directly or indirectly concerned in any business, trade,
profession or other occupation (whether as an employee, consultant, agent,
director or otherwise) of a similar nature to or competitive with that carried
on by the Company or any Group Companies except:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | as
a representative or officer of a Group Company;
|--- |  | --------------------------------------------------

|(b) |  | as
a non-executive director under Clause 8.1;
|--- |  | ---------------------------------------------

|(c) |  | by virtue of your being interested in securities not representing more than one
per cent of a companys issued securities of any class which are either (i)
listed on a recognised stock exchange or dealt on an unlisted securities market
or an alternative investment market or authorised for quotation in a recognised
inter-dealer quotation system or (ii) of a private company whose shares the
Chief Executive of the Company has authorised you to hold; or
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | with
the prior written consent of the Board.
|--- |  | --------------------------------------------

|8.3 You may serve on the
board of religious, charitable or public service organisations or otherwise be
engaged in the activities of such organisations provided so serving or being so
engaged does not prejudice your ability to fulfil your duties under this
Agreement.


INVENTIONS AND
IMPROVEMENTS


9.1 It will be part of your normal
duties at all times:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | to consider in what manner and by what new methods or devices the products,
services, processes, equipment or systems of the Company and other Group
Companies with which you are concerned or for which you are responsible might be
improved; and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | promptly to give to the Company Secretary of the Company full details of any
invention or improvement which you may from time to time make or discover in the
course of your duties.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Subject to the Patents Act
1977, the Company will be entitled free of charge to the sole ownership of any
such invention or improvement and to the exclusive use of it.


9.2 You assign to the
Company (or to such other Group Company as the Company may direct) all
copyrights, designs and other proprietary rights, if any, which may be so
assigned in respect of all works and designs created by you or relating to your
responsibilities during the Employment for the full term of those rights to the
intent that those rights will immediately upon the completion of the relevant
work vest with the Company (or with such other Group Company as the Company may
direct).


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|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.3 At the request and cost
of the Company, you will do all such acts and things as may in the opinion of
the Board be necessary or conducive to vest such rights in the Company (or in
such other Group Company as it may direct). You irrevocably authorise the
Company for the purposes of this Clause to make use of your name and to sign and
to execute any documents or do any thing on your behalf.


9.4 You will not do anything
knowingly to imperil the validity of any patent or protection or any application for a
patent or protection.


9.5 You will not either
during or after the termination of the Employment exploit or assist others to
exploit any invention or improvement which you may from time to time make or
discover in the course of your duties or (unless it shall have become public
knowledge) make public or disclose any such invention or improvement or give any
information in respect of it except to the Company or as the Company may direct.


9.6 You irrevocably waive
in favour of the Company (and in favour of such other Group Company as the
Company may direct), its licensees and successors-in-title any and all moral
rights in any works (existing or future) which are the subject of copyright made
by you in the course of the Employment.


CONFIDENTIALITY


10.1 During and after the
termination of the Employment you will at all times keep confidential all
private information about the Company and other Group Companies including
technical and financial information which you may have acquired while in the
employment of the Company or of any other Group Company. You will not use such
information for your own benefit or for the benefit of any business not within
the Group. You will keep such information confidential to yourself, to other
members of the Board and to anybody who needs such information in order to
properly discharge his duties to the Company or any Group Company. Such
information includes (without limitation) the following:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the business methods and information of the Company and any other Group
Companies (including, without limitation, prices charged, discounts given to
customers or obtained from suppliers, product development, marketing and
advertising programmes, costing, budgets, turnover, sales targets and other
financial information);
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | lists
and particulars of the suppliers and customers of the Company or of any other Group
Companies and the individual contacts at such suppliers and customers;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | details
and terms of the Agreements with suppliers and customers of the Company or of any other
Group Companies;
|--- |  | ----------------------------------------------------------------------------------------------------------------

|(d) |  | secret
development manufacturing or production processes and know-how employed by the Company or
any other Group Companies or their respective suppliers; and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page
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|------

|
|

|(e) |  | confidential details as to the design of the products and inventions or
processes relating to the provision of services or developments relating to
future products and services of the Company or of any other Group Companies or
those of their respective suppliers.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2 These restrictions
shall not apply to any disclosure or use authorised by the Board or required by
law or by the requirements of any regulatory or other authority to which the
Company or any other Group Company is subject.


10.3 These restrictions
shall not apply to information which is already in the public domain other than
in cases where such information has become public as a result of a breach by you
of these restrictions.


10.4 These restrictions
shall not restrict you from using your own personal skill in any business in
which you may lawfully be engaged after termination of the Employment.


STATUTORY
PROVISIONS


11. Additional provisions, details
of which the Company is required by statute to provide you, are set out in Schedule 2 to
this Agreement.


TERMINATION


Summary
termination


12.1 The Company may
terminate the Employment by immediate notice in writing and without payment of
any kind other than salary and bonus accrued at the date of termination:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | if
in the reasonable opinion of the Board you are guilty of any:
|--- |  | ----------------------------------------------------------------

| |  | (i) |  | serious
misconduct;
| |  | --- |  | -------------------

| |  | (ii) |  | persistent
misconduct continuing after demand for cessation of such misconduct is delivered in
writing by the Board or by the Company Secretary on instruction from the Board; or
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | if
you commit any material breach of any material provision of this Agreement;
|--- |  | ------------------------------------------------------------------------------

|(c) |  | if
you neglect or refuse to carry out any material part of your duties (other than for a
reason mentioned in Clause 12.2);
|--- |  | --------------------------------------------------------------------------------------------------------------------------

|(d) |  | if
you engage in any conduct which brings or is likely to bring the Company or any other
Group Companies, in the reasonable opinion of the Board, into disrepute;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | if you become bankrupt or enter into a composition with your creditors or apply
for a receiving order or have a receiving order made against you;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------

|Page
6
|------

|
|

|(f) |  | if
you become prohibited by law from being a director; or
|--- |  | ---------------------------------------------------------

|(g) |  | if
you terminate your directorship of the Company without the consent of the Board.
|--- |  | -----------------------------------------------------------------------------------

|Termination by
the Company through illness


12.2 The Company may
terminate the Employment if you are prevented by illness (including mental
illness) or injury from attending to your duties for more than 365 days in
aggregate in any one period of 24 consecutive calendar months. The Company will
not terminate the Employment pursuant to this Clause 12.2 if, as a result,
you would or may forfeit any entitlement to benefits under the permanent health
insurance scheme referred to in Schedule 1 unless it has used all reasonable
endeavours to try to procure the continuation of cover under that scheme.


Termination
through loss of directorship


12.3 If you are removed
from the office of director of the Company, or the Company failsin
general meeting to re-elect you as a director of the Company (if, under the
Articles of Association or other constitutional documents for the time being of
the Company as the case may be, you are obliged to retire by rotation or
otherwise), then the Company may elect that the Employment shall terminate
immediately without prejudice to the right of either party to this Agreement to
treat any act or omission causing such removal from office as a breach of this
Agreement.


Termination on
change of control


12.4 Notwithstanding the
provisions of Clause 12.5, you may terminate the Employment by giving the
Company one months notice in writing, such notice to be given within three
months after a Change of Control unless a third party acquiring control of more
than 50% of the voting rights of the Company has agreed to adopt the Reuters
Trust Principles and the rights and duties of the Reuters Trustees as set out in
the Memorandum and Articles of Association of the Company and in the Memorandum
and Articles of Association of Reuters Founders Share Company Limited and to use
its best endeavours to procure that the Principles and such rights and duties
are observed and upheld within the Company and any holding company of the
Company. A Change of Control shall for the purpose of this Agreement occur where
more than 50% of the voting rights of the Company become controlled by any third
party (including persons acting in concert but excluding Reuters Founders Share
Company Limited) or the Company sells or otherwise disposes of all or
substantially all of its assets with the approval of the Companys
shareholders, other than for the purposes of a reconstruction or reorganisation
in which (A) the ultimate ownership of the Company or substantially all its
assets is unaffected or (B) a new holding company for the Company is created,
where the new holding company has substantially the same shareholders and
proportionate shareholdings as those of the Company immediately prior to the
interposition of the new holding company.


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|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Termination in
other circumstances


12.5 Subject to earlier termination
in accordance with the provisions of this Clause, the Employment will continue until
terminated:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | by
the Company giving you 12 months' written notice; or
|--- |  | -------------------------------------------------------

|(b) |  | by
you giving the Company 12 months' written notice.
|--- |  | ----------------------------------------------------

|The Company may, in its sole
discretion, elect to terminate the Employment without giving you notice or the
full period of notice required by 12.5 (a) in which event you will be entitled
to receive a payment calculated in accordance with Clause 12.6.


Liquidated
damages


12.6 This Clause applies if:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the Employment is terminated by the Company otherwise than a termination (i) in
accordance with Clause 12.1 or (ii) where removal from office takes place in
circumstances justifying summary termination under Clause 12.1, in accordance
with Clause 12.3 or (iii) in accordance with Clause 12.5 unless the final
sentence of Clause 12.5 applies in which case this Clause will apply;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | you
are constructively dismissed which for these purposes shall include (without limitation):
|--- |  | ---------------------------------------------------------------------------------------------

| |  | (i) |  | the
assignment to you of any duties inconsistent in any respect with your position (including
status, offices, titles and reporting requirement), authority, duties or
responsibilities; or
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (ii) |  | any
other action by the Company which results in a diminution in such position, authority,
duties or responsibilities, but excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by you; or
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | you
terminate the Employment under Clause 12.4.
|--- |  | -----------------------------------------------

|Where this Clause applies,
the Company will (subject to the remainder of this Clause) pay to you by way of
liquidated damages an amount equal to the aggregate of :
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (i) |  | your
annual salary immediately prior to the date of termination of the Employment;
| |  | --- |  | ----------------------------------------------------------------------------------

| |  | (ii) |  | the
amount of pension contributions made by the Company on your behalf or to you in the last
financial year of the Company preceding the date of termination; and
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (iii) |  | the
average of the last three annual bonuses earned by you pursuant to paragraph 1 of
Schedule 1 to this Agreement in the last three complete financial years of the Company
preceding the date of termination.
| |  | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page
8
|------

|In relation to (iii) above,
where there have been fewer than three complete financial years of the Company
during the Employment, the averaging shall be by reference to the number of
complete financial years which there have been during the Employment.


In the event that the
Company requires you to work only part of the notice period required by Clause
12.5 (a), the liquidated damages payment under this Clause 12.6 will be reduced
by an amount equal to the salary, pension contributions and (if applicable)
bonus paid to you or on your behalf in respect of the period of notice worked.


In the event that the
Employment is terminated in accordance with Clause 12.2, liquidated damages
payment under this Clause 12.6 will be reduced by an amount equal to the amount
of any benefit payable under the permanent health insurance scheme referred to
in Schedule 1 for the period of 12 months following the date of termination.


The payment will be
conditional on you not bringing any claims before a court or tribunal relating
to the Employment and/or its termination. The payment will be made in two
stages. The total amount, less a deduction of £60,000, willbe paid
within 14 days of the end of the Employment and the remaining balance of
£60,000 will be paid within four months of the end of the Employment, in
each case less any necessary withholdings. You agree to accept the same in full
and final settlement of all and any claims or rights of action that you have or
may have against the Company and against any other Group Company and against
their respective officers and employees in connection with the Employment or its
termination.


Return of
documents


12.7 On termination of the
Employment for any reason or, at the request of the Company, when notice to
terminate the Employment is given, you must immediately deliver to the Company
(without keeping any copies):
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | all
documents, papers and materials and any other property of the Company and of any other
Group Companies; and
|--- |  | ---------------------------------------------------------------------------------------------------------------

|(b) |  | all
documents or other media on which confidential information about the Company and any
other Group Companies is recorded,
|--- |  | ---------------------------------------------------------------------------------------------------------------------------

|in your possession or under your
control.


Resignation as
a director


12.8 On termination of the
Employment for any reason, you must immediately, at the request of the Company
resign your office as a director of the Company and of any other Group Company
without compensation for loss of office but without prejudice to any rights
which you may have to treat such request as a breach of this Agreement.


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|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Share schemes


12.9 It is acknowledged
that you may, during the Employment, be granted rights upon the terms and
subject to the conditions of the rules from time to time of the Reuters Group
PLC Long Term Incentive Plan or any other profit sharing, share incentive, share
option, bonus or phantom option scheme operated by the Company or any other
Group Company with respect to shares in the Company or any other Group Company.
If, on termination of the Employment, whether lawfully or in breach of contract
you lose any of the rights or benefits under such schemes (including rights or
benefits which you would not have lost had the Employment not been terminated)
you shall not be entitled, by way of compensation for loss of office or
otherwise howsoever, to any compensation for the loss of any rights under any
such scheme.


GARDEN LEAVE
AND SUSPENSION


13.1 The Company may at any
time or from time to time suspend you from the performance of your duties and/or
exclude you from any of the premises of the Company or of any other Group
Company:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | during
any period of notice or any part of a period of notice as specified in Clauses 12.4 or
12.5; or
|--- |  | ------------------------------------------------------------------------------------------------------

|(b) |  | in circumstances in which the Company reasonably believes that you are guilty of
misconduct or are in breach of this Agreement and in order that the
circumstances giving rise to that belief may be investigated.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13.2 The Company is not
required to give any reason for suspending or excluding you. Your salary and
benefits will not cease to be payable by reason only of such suspension or
exclusion.


13.3 During any period of
suspension or exclusion, you will not contact or deal with customers, suppliers
or employees of the Company or of any other Group Company or enter onto the
premises of the Company or of any Group Company without the prior written
consent of the Chief Executive of the Company.


CONTINUING
OBLIGATIONS


Non-representation


14.1 You will not at any
time after the termination of the Employment directly or indirectly represent
yourself as being in any way connected with or interested in the business of the
Group (except, if it is the case, as a shareholder of the Company or as a
director of the Company).


Non-solicitation
of employees


14.2 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company or
employ or engage any employee of the Company or of any other Group Company with
whom you had business dealings or who reported to you, directly or indirectly,
during the period of 12 months preceding the date of termination of the
Employment and who is or was employed or engaged by the Company or by any other
Group Company:


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10
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|(a) |  | as
a director or in a managerial or technical capacity; or
|--- |  | ----------------------------------------------------------

|(b) |  | you know (or ought reasonably to know) could materially damage the interests of
the Company or any other Group Company if he became employed in any business in
competition with the business of the Company or of any other Group Company.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Non-solicitation
of business


14.3 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company the
business or custom of any firm, company or other person who, during the period
of 12 months preceding the date of termination of the Employment, was a customer
of the Company or of any other Group Company with whom you had business dealings
or about whom you became informed or over whom you had influence in the course
of the Employment during that period, with a view to providing goods or services
which would compete with the business of the Company or of any other Group
Company carried on at the date of termination of the Employment and with which
you were materially involved during that period.


Non-dealing


14.4 You must not for a
period of six months after the termination of the Employment deal with any
person, firm or company who during the period of 12 months preceding the date of
termination of the Employment was a customer or potential customer of the
Company or of any other Group Company and (in the case of a customer) to whom
you provided services on behalf of the Company or any other Group Company or (in
the case of a potential customer) with whom you had business dealings with a
view to obtaining business for the Company or any other Group Company and in
each case with whom you had business dealings or about whom you became informed
or over whom you had influence in the course of the Employment during that
period, with a view to providing goods or services which would compete with the
business of the Company or of any other Group Company carried on at the date of
termination of the Employment and with which you were materially involved during
that period.


Non-competition


14.5 You must not, for a period of
six months after the termination of the Employment, be engaged in or concerned in any
capacity in any business concern which is in competition with the business of the Company
or of any other Group Company. A list of such business concerns as at the dateof
this Agreement is set out in Part 1 of Schedule 3 to this Agreement. Unless you have the
prior approval of the Chairman and the Chief Executive of the Company you may not, for a
period of six months after the termination of the Employment, be engaged in or concerned
in any capacity in any of the business concerns named in the lists set out in Parts 2 and
3 of



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|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Schedule 3 of this Agreement. The
lists in Schedule 3 may be amended by the Board acting reasonably (provided that the
number of business concerns included in Schedule 3 at any one time shall not exceed 15)
and each such amendment shall be notified to you from time to time. This Clause shall not
restrain you from being engaged or concerned in any business concern in so far as your
duties or work relate solely to services or activities of a kind with which you were not
concerned to a material extent during the period of six months preceding the date of
termination of the Employment.





Extension to
other persons


14.6 The obligations
imposed on you by this Clause 14 extend to you acting not only on your own
account but also on behalf of any other firm, company or other person and shall
apply whether you act directly or indirectly.


Acknowledgement
of reasonableness


14.7 The restrictions
contained in this Clause 14 are considered by you and the Company to be
reasonable in all the circumstances. Each part of this Clause constitutes an
entirely separate and independent restriction and the duration, extent and
application of each of the restrictions are not greater than is necessary for
the protection of the commercial interests of the Group and their stable trained
workforce.


No disparaging
statements


14.8 Each party agrees
during, and after termination of, the Employment not to make, publish or cause
to be made, published or issued or otherwise communicate to any third party any
disparaging or derogatory statements to any third party concerning you or the
Company or any Group Company or any of its or their current executives,
officers, employees, agents or consultants, provided that nothing in this
Agreement will prevent you or the Company from disclosing information as
required by law or in order to take professional advice or as ordered by a court
of competent jurisdiction.


WAIVER


15. Any delay or forbearance by the
Company in exercising any right of determination of this Agreement shall not constitute a
waiver of it.


AMENDMENTS


16. No amendment or waiver
of any of the provisions of this Agreement shall be effective unless made in
writing and signed by you and a director or the Company Secretary of the
Company.


NOTICES


17. Any notice required to be served
under this Agreement may be given either personally, by fax or by registered post:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | to
the Company at its registered office for the time being; or
|--- |  | --------------------------------------------------------------

|Page
12
|-------

|
|

|(b) |  | to
you at the address at the start of this Agreement or your last known address.
|--- |  | --------------------------------------------------------------------------------

|Any notice to be given
under this Agreement to you may be served by being handed to you personally or
by being sent by recorded delivery first class post or by fax to you at your
usual or last known address; and any notice to be given to the Company may be
served by being marked for the attention of the Company Secretary and by being
left at or by being sent by recorded delivery first class post or by fax to its
registered office for the time being. Any notice served by post shall be deemed
to have been served on the second day (excluding Sundays and statutory holidays)
next following the date of posting and in proving such service it shall be
sufficient proof that the envelope containing the notice was, in your case,
addressed to you at your usual or last known address and, in the case of the
Company, addressed to it marked for the attention of the Company Secretary at
its registered office for the time being, and in either case posted as a prepaid
letter by recorded delivery. Any notice served by fax shall be deemed to have
been served twelve hours after the time of despatch.


OTHER
AGREEMENTS


18. You acknowledge and
warrant that there are no Agreements or arrangements whether written, oral or
implied between the Company or any other Group Company and you relating to your
employment or the Employment other than those which are expressly set out in
this Agreement and that you are not entering into this Agreement in reliance on
any representation not expressly set out in this Agreement.


GOVERNING LAW


19. This Agreement will be
governed by and construed under English law without regard to its conflicts of
laws provisions, and each of the parties hereby irrevocably agrees for the
exclusive benefit of the Company that the Courts of England are to have
jurisdiction to settle any disputes which may arise out of or in connection with
this Agreement.


WITHHOLDING TAX


20. All amounts payable to
you under this Agreement shall be subject to applicable withholding of income,
salary and such other withholdings that the Company determines are required to
be withheld in accordance with applicable laws.


AS WITNESSwhereof
this Agreement has been signed by or on behalf of the parties to it on the day
and year first above written.


Page
13
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SCHEDULE 1


OTHER
BENEFITS


BONUS


1. You will be entitled to
participate in an annual bonus plan to be administered by the Remuneration
Committee. Unless otherwise agreed by the Remuneration Committee, the maximum
annual bonus payable under this plan will be an amount up to 70% of your base
salary (from 1 July 2001, 100% of base salary). The criteria relating to your
performance and that of the Company which are to be used to determine the amount
of the bonus in any year will be laid down by the Remuneration Committee at the
commencement of each year and the bonus for that year will be paid as soon as
reasonably practicable after the relevant results have been determined. The
Remuneration Committee reserves the right to amend the quantitative criteria
annually and/or to discontinue the bonus arrangement. On termination of the
Employment, other than termination pursuant to Clause 12.1 or termination in
respect of which Clause 12.6 applies, you shall be entitled to a pro-rated
amount of bonus, being such proportion of average bonus (calculated according to
Clause 12.6(iii)) as is the same as the proportion of the last financial year
during which the Employment has subsisted.


SHARE OPTION
PLANS


2.1 You will be eligible
for membership of the Companys Save As You Earn Share Option Scheme and of
any other all employee share option plan operated by the Company and approved by
the Companys shareholders. Participation in such scheme and plans is, save
as otherwise stipulated in their rules, at the sole discretion of the Board or
the Remuneration Committee.


2.2 If you are relocated to
a country outside the United Kingdom, you are entitled to participate in any
equivalent scheme or plan operated by a Group Company in that country.


HOLIDAYS


3.1 The Companys
holiday year runs from 1 January to 31 December. In addition to the bank and
other public holidays, you will be entitled to 26 working days paid
holiday in each holiday year. Thereafter, you will receive one extra day for
each additional year of service, subject to a maximum entitlement of 30 working
days paid holiday. In the first year of the Employment, the annual
entitlement will be pro rata based on the holiday year.


3.2 Your annual holiday may
be taken at such time or times as are reasonably appropriate having regard to
the business needs of the Company.


3.3 Holidays not taken in
the year of entitlement will be lost unless carried forward with the agreement
of the Chief Executive of the Company.


Page
14
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3.4 On termination of the
Employment, you will be entitled to pay in lieu of any unpaid holiday or be
required to pay the Company any salary received for holiday taken in excess of
your contractual entitlement. You may be required to take any untaken holiday
during your notice period.


PENSION SCHEMES


4.1 The Company will pay an
amount equal to 30% of your base salary (or such other amount as is set out in
your annual statement of remuneration and benefits) in equal monthly instalments
to provide and/or in substitution for pension benefits.


4.2 All or part of this
amount may be paid by the Company to a tax approved Company pension scheme or to
such a personal pension plan as the Company may agree with you, subject to any
limits imposed by the Inland Revenue from time to time. Any part of this amount
not paid in this way will be paid to you as a cash allowance as part of your
monthly remuneration (but will not be treated as part of your basic annual
salary) and will be subject to deduction of income tax and National Insurance
Contributions and any other statutory deductions which may be required from time
to time.


4.3 You will not become a
member of the Reuters UK Retirement Plan unless the Company agrees special terms
of admission and membership with you and the Trustees of the Plan.


4.4 A contracting out certificate is
not in force in respect of the Employment.


LONG TERM
INCENTIVE PLAN


5. You are entitled to be a
member of the Reuters Group PLC Long Term Incentive Plan or any plan operated by
the Company in succession to that plan (as notified to you from time to time)
for so long as the Plan or such plan may be operated by the Company, and the
Company shall pay to you benefits under the Plan or such plan, subject to the
conditions of the Companys policy on retention of LTIP awards on early
retirement (as notified to you from time to time).


DISABILITY
INSURANCE


6. You shall be entitled to
membership of, and the Company shall pay to you benefits under, the
Companys disability insurance scheme, subject to the terms of that scheme
and of any related policy of insurance as in force from time to time.


LIFE ASSURANCE
AND PERMANENT HEALTH SCHEME


7.1 The Company will
provide life assurance to you so that in aggregate you are assured for the value
of four times annual salary, subject to your being acceptable for insurance at
rates normal for your age and subject to the rules of the relevant life
assurance arrangements.


7.2 You (your spouse and
any unmarried children under 21 (or under 24 if in fulltime education)) are
entitled to membership of the Companys permanent health insurance scheme
subject to the rules of the scheme and of any related policy of insurance.


Page
15
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.3 If you wish, as an
alternative to membership of the Companys scheme, the Company will bear
the costs of you being a member of another permanent health insurance scheme, up
to the value of the benefits available to you under the Companys scheme.


7.4 You are entitled to
receive an annual health check at a cost to the Company of no more than
£500 (or as increased and notified to you from time to time).


COMPANY CAR


8. The Company will provide
you with a car (or cash in lieu if you so elect) in accordance with the terms of
the Companys policy on executive directors cars (as notified to you
from time to time) for business and personal use and will bear the expenses of
taxing, insuring, repairing and maintaining the car. You agree to comply in full
with the Companys policy on executive directors cars, failing which
the Company may require you to return the car immediately.


CHAUFFEUR-DRIVEN
CAR


9. You shall be entitled to
the non-exclusive use of a chauffeur-driven car provided by the Company (subject
to availability) at no cost to you for purposes reasonably connected with the
Companys business or as otherwise approved by the Chief Executive of the
Company.


DIRECTORS
INDEMNITY AND INSURANCE


10. You shall have the benefits of:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the
indemnity contained in regulation 155 of the Company's Articles of Association;
|--- |  | -----------------------------------------------------------------------------------

|(b) |  | any similar indemnity in respect of liabilities incurred by Group Company
directors in their capacity as such contained in the constitutional documents of
any other Group Company for so long as you are a director or officer of such
other Group Company; and
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | (subject to their terms) any insurance policies which shall be maintained by the
Company in respect of liabilities incurred by Group Company directors in their
capacity as such.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|OTHER BENEFITS


11.1 The Company will pay
the school fees in respect of your daughter of a sum of up to £12,000 (net
of tax) for the 2000 to 2001 academic year.


11.2 You shall have such
other benefits as may be made available to you by the Company from time to time,
including but not limited to the use of Reuters products, mobile telephone and
other equipment and membership of professional bodies.


Page
16
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SCHEDULE 2


ADDITIONAL
STATUTORY PROVISIONS


EMPLOYMENT RIGHTS
ACT 1996


Additional particulars
required to be disclosed:


CONTINUOUS
EMPLOYMENT


1. Your period of continuous
employment with the Company began on 1 September 1999.


INJURY AND SICKNESS
PAY


2. If you are absent from work
because of sickness or injury, you must:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | notify
the Company as soon as possible on the first morning of absence and inform the Company of
your expected date of return;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------

|(b) |  | complete
and return to the Company a self-certification form in respect of the first five working
days of any sickness absence;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------

|(c) |  | provide the Company with a medical certificate from your GP or other registered
practitioner for periods of absence of seven days (including weekends) in excess
and with medical certificates for each subsequent week of sickness absence;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | if
requested by the Company, undergo a medical examination at the expense of the Company
with a medical practitioner nominated by the Company; and
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | if requested by the Company give written permission to the Company to have
access to any medical or health report in its complete form prepared by any
health professional on your physical or mental condition.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Subject to the above, you
will be entitled at the discretion of the Company to up to 365 days sick
pay (including statutory sick pay) in any 24 month rolling period. Sick pay will
be calculated at your normal rate of pay and benefits.


DISCIPLINARY
RULES AND GRIEVANCE PROCEDURE


If at any time you have a
grievance relating to the Employment, you may seek redress orally or in writing
by, in the first instance, referring the grievance to the Chairman of the Board.
If the grievance remains unresolved, you may appeal to the Board and the Board
shall deal with the matter by discussion and by majority decision of those
present at the relevant meeting of the Board. The Boards decision shall be
final and binding.



Page
17
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|COLLECTIVE
AGREEMENTS


4. There are no collective
agreements with trade unions which directly affect your terms and conditions.




Page
18
|--------------------------------------------------------------------------------------------------------------------------------------------

|SCHEDULE 3


COMPETING
BUSINESS CONCERNS


AS AT THE DATE
OF THIS AGREEMENT


Part 1


Competing
Business Concerns
|------------------------------------------------------------------------------------------------------------------

| | Bloomberg
L.P.
| | --------------

| | Pearson
PLC
| | -----------

| | Quick
Corporation of Japan
| | --------------------------

| | AOL
Time Warner
| | ---------------

| | Telekurs
A.G.
| | -------------

| | SunGard
| | -------

| | The
Electronic Broking Service
| | ------------------------------

|Part 2


Companies with
Divisions which compete with Reuters
|------------------------------------------------------------

| | The
Thomson Corporation
| | -----------------------

| | The
McGraw Hill Companies
| | -------------------------

| | The
Dun & Bradstreet Corporation
| | --------------------------------

| | Reed
Elsevier P.L.C./Elsevier N.V.
| | ----------------------------------

|Part 3


Companies
with which Reuters has strategic relationships
|-----------------------------------------------------------------

| | Multex.com,
Inc.
| | ----------------

| | Yahoo!
Inc.
| | -----------

|Page
19
|-------

|
|

|SIGNED byfor and on behalf ofREUTERS GROUP PLCin the presence of:- | ) ) Sir Christopher Hogg))
|------------------------------------------------------------------ | --------------------------

|SIGNED as
a DEEDand DELIVERED byPHILIP GREENin the presence of :- | ))))
|----------------------------------------------------------------- | ----

|Page
20
|-------

|21st
June 2001
REUTERS
GROUP PLC
DAVID GRIGSON
SERVICE AGREEMENT
|----------------------------------------------------------------

|TABLE OF
CONTENTS
|-----------------

|   |  | Page                       
|-- |  | ---------------------------
|   |  |                            
|1  |  | Definitions                
|   |  |                            
|2  |  | Duration of employment     
|   |  |                            
|3  |  | Role, Powers and Duties    
|   |  |                            
|4  |  | Normal Place of Work       
|   |  |                            
|5  |  | Hours of Work              
|   |  |                            
|6  |  | Salary and Benefits        
|   |  |                            
|7  |  | Expenses                   
|   |  |                            
|8  |  | Other Interests            
|   |  |                            
|9  |  | Inventions and Improvements
|   |  |                            
|10 |  | Confidentiality            
|   |  |                            
|11 |  | Statutory Provisions       
|   |  |                            
|12 |  | Termination                
|   |  |                            
|13 |  | Garden Leave and Suspension
|   |  |                            
|14 |  | Continuing Obligations     
|   |  |                            
|15 |  | Waiver                     
|   |  |                            
|16 |  | Amendments                 
|   |  |                            
|17 |  | Notices                    
|   |  |                            
|18 |  | Other Agreements           
|   |  |                            
|19 |  | Governing Law              
|   |  |                            
|20 |  | Withholding Taxes          

|            |  |                                
|----------- |  | -------------------------------
|SCHEDULE 1: |  | Other Benefits                 
|            |  |                                
|SCHEDULE 2: |  | Additional Statutory Provisions
|            |  |                                
|SCHEDULE 3: |  | Competing Business Concerns    

|THIS AGREEMENT is made on 21st June
2001


BETWEEN


(1) REUTERS GROUP PLC registered in
England with No. 3296375 whose registered office is at 85 Fleet Street, London, EC4P 4AJ
(the Company); and


(2) DAVID GRIGSON of Bainton
Farmhouse, Bainton, Stamford, Lincolnshire PE9 3AF (you).


IT IS AGREED as follows:


DEFINITIONS


1. In this Agreement the following
expressions shall have the following meanings:


Board
means the board of directors of Reuters Group PLC or a duly constituted
committee of the board of directors;


Employmentmeans your employment in
accordance with the terms and conditions of this Agreement;


Groupmeans the Company, any holding company of the Company and any
subsidiary of the Company or of any such holding company (with holding company
and subsidiary having the meanings given to them by section 736 of the
Companies Act 1985). Group Company and Group
Companies shall be construed accordingly; and


Remuneration
Committee means the remuneration committee of the Board.


DURATION OF
EMPLOYMENT


2. The Employment will
begin on 1 August 2000 and will continue until terminated in accordance with
Clause 12 below.


ROLE, POWERS
AND DUTIES


3.1 You will serve the
Company as Finance Director (Chief Financial Officer) or in such other capacity
of a like status as the Company may require.


3.2 Subject to Clause 4,
you will exercise such powers and perform such duties in relation to the
business of the Company and the Group, being duties which are appropriate to
your senior status, as may be assigned to you by the Chief Executive of the
Company after taking into account the opinion of the Board.


3.3 During the Employment you will:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | devote
substantially the whole of your working time, attention and abilities to carrying out
those duties in a proper, loyal and efficient manner;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|(b) |  | use
all reasonable endeavours to promote the interests of the Company and any other Group
Company which you may be required to serve under the terms of this Agreement;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | have due regard to the Reuters Trust Principles and to the rights and duties of
the Reuters Trustees as set out in the Memorandum and Articles of Association of
the Company and the Memorandum and Articles of Association of Reuters Founders
Share Company Limited insofar as, by the proper exercise of your powers (and in
accordance with your other duties) as director of the Company, the Reuters Trust
Principles are capable of being observed by you;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | have due regard to the provisions of the Reuters Code of Conduct (as notified to
you from time to time) and, so far as reasonably practicable in the performance
of your duties, observe all material provisions of that Code;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | comply
with the Reuters Share Dealings Code (as notified to you from time to time); and
|--- |  | ---------------------------------------------------------------------------------------

|(f) |  | have
due regard to the provisions of all other policies which are applied to you by the
Company, as notified to you from time to time.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------

|3.4 You are entitled to
take independent professional advice, at the expense of the Company, where such
advice is reasonably required for the furtherance of your duties as a director
of the Company and provided that before taking such advice you obtain the
written consent of one other director and send a copy of such consent to the
Company Secretary and that the Companys expenditure on such advice does
not exceed £50,000 per annum.


NORMAL PLACE
OF WORK


4. Your normal place of
work is at the Companys head office. You may be required, in the
performance of your duties, to travel in the United Kingdom and overseas.
However, having given you reasonable notice, the Company may reasonably require
you to perform your duties at the offices of another Group Company in a major
financial centre outside the United Kingdom, such as New York, in which case you
shall be offered expatriate benefits appropriate to your senior status.


HOURS OF WORK


5. You will work the
Companys normal working hours together with such additional hours as may
reasonably be required for the proper performance of your duties.


SALARY AND
BENEFITS


6.1 You will be paid a
salary at such rate as is set out in an annual letter to you from the Company
and as confirmed in your annual statement of remuneration and benefits.


Page
2
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.2 Your salary will accrue
from day to day and be payable in arrears by equal monthly instalments on or
about the fifteenth day of each month.


6.3 You are not entitled to
any other salary or fees as director or employee of the Company or any other
Group Company and you must, as the Company directs, either waive your rights to
any such salary or fees or account for the same to the Company (failing which it
will be deducted from your salary).


6.4 Your salary and
benefits will be reviewed annually by the Remuneration Committee. Any change in
the level of your salary and benefits as a result of the review (which will not
be downwards) will be effective from 1 January of the year following the review
(unless you and the Chairman of the Remuneration Committee agree otherwise).


6.5 In addition to the
above, you will be entitled to receive those benefits set out in Schedule 1 to
this Agreement.


6.6 During or after the
termination of the Employment for whatever reason, the Company may deduct from
your pay any sums outstanding to the Company or to any other Group Company from
you including, without limitation, any advance of pay or loans or floats for
expenses.


EXPENSES


7. Subject to the
Companys policies on executive directors expenses and executive
directors spouse expenses (as notified to you from time to time), the
Company will reimburse to you all reasonable travelling, hotel and other
out-of-pocket expenses (including first class travel expenses) properly incurred
by you and your spouse in the execution of the duties of the Employment against
production of valid receipts and properly completed expense reports.


OTHER INTERESTS


8.1 During the Employment
you will be entitled to accept appointments as a non-executive director of
companies other than a Group Company subject to:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the
prior written consent of the Chief Executive of the Company (such consent to be confirmed
by the Board); and
|--- |  | ----------------------------------------------------------------------------------------------------------------

|(b) |  | the
Companys policy on non-executive directorships (as notified to you from time to time).
|--- |  | -------------------------------------------------------------------------------------------

|You may retain any fees
received as a non-executive director provided they are paid in cash rather than
in stock, other securities or options. Days of service as a non-executive
director will not be deducted from your holiday entitlement provided that you
shall not spend more than ten working days in aggregate in any year in such
service. At any time during the Employment the Company may, with reasonable
cause, require you to resign any non-executive directorship held. Reasonable
cause for this purpose shall include but not be limited to a conflict of
interest and such other reason or reasons as may be specified in the Reuters
Code of Conduct (as notified to you from time to time).


Page
3
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.2 During the Employment
you will not be directly or indirectly concerned in any business, trade,
profession or other occupation (whether as an employee, consultant, agent,
director or otherwise) of a similar nature to or competitive with that carried
on by the Company or any Group Companies except:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | as
a representative or officer of a Group Company;
|--- |  | --------------------------------------------------

|(b) |  | as
a non-executive director under Clause 8.1;
|--- |  | ---------------------------------------------

|(c) |  | by virtue of your being interested in securities not representing more than one
per cent. of a companys issued securities of any class which are either
(i) listed on a recognised stock exchange or dealt on an unlisted securities
market or an alternative investment market or authorised for quotation in a
recognised inter-dealer quotation system or (ii) of a private company whose
shares the Chief Executive of the Company has authorised you to hold; or
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | with
the prior written consent of the Board.
|--- |  | --------------------------------------------

|8.3 You may serve on the
board of religious, charitable or public service organisations or otherwise be
engaged in the activities of such organisations provided so serving or being so
engaged does not prejudice your ability to fulfil your duties under this
Agreement.


INVENTIONS AND
IMPROVEMENTS


9.1 It will be part of your normal
duties at all times:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | to consider in what manner and by what new methods or devices the products,
services, processes, equipment or systems of the Company and other Group
Companies with which you are concerned or for which you are responsible might be
improved; and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | promptly to give to the Company Secretary of the Company full details of any
invention or improvement which you may from time to time make or discover in the
course of your duties.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Subject to the Patents Act
1977, the Company will be entitled free of charge to the sole ownership of any
such invention or improvement and to the exclusive use of it.


9.2 You assign to the
Company (or to such other Group Company as the Company may direct) all
copyrights, designs and other proprietary rights, if any, which may be so
assigned in respect of all works and designs created by you or relating to your
responsibilities during the Employment for the full term of those rights to the
intent that those rights will immediately upon the completion of the relevant
work vest with the Company (or with such other Group Company as the Company may
direct).


Page
4
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.3 At the request and cost
of the Company, you will do all such acts and things as may in the opinion of
the Board be necessary or conducive to vest such rights in the Company (or in
such other Group Company as it may direct). You irrevocably authorise the
Company for the purposes of this Clause to make use of your name and to sign and
to execute any documents or do any thing on your behalf.


9.4 You will not do anything
knowingly to imperil the validity of any patent or protection or any application for a
patent or protection.


9.5 You will not either
during or after the termination of the Employment exploit or assist others to
exploit any invention or improvement which you may from time to time make or
discover in the course of your duties or (unless it shall have become public
knowledge) make public or disclose any such invention or improvement or give any
information in respect of it except to the Company or as the Company may direct.


9.6 You irrevocably waive
in favour of the Company (and in favour of such other Group Company as the
Company may direct), its licensees and successors-in-title any and all moral
rights in any works (existing or future) which are the subject of copyright made
by you in the course of the Employment.


CONFIDENTIALITY


10.1 During and after the
termination of the Employment you will at all times keep confidential all
private information about the Company and other Group Companies including
technical and financial information which you may have acquired while in the
employment of the Company or of any other Group Company. You will not use such
information for your own benefit or for the benefit of any business not within
the Group. You will keep such information confidential to yourself, to other
members of the Board and to anybody who needs such information in order to
properly discharge his duties to the Company or any Group Company. Such
information includes (without limitation) the following:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the business methods and information of the Company and any other Group
Companies (including, without limitation, prices charged, discounts given to
customers or obtained from suppliers, product development, marketing and
advertising programmes, costing, budgets, turnover, sales targets and other
financial information);
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | lists
and particulars of the suppliers and customers of the Company or of any other Group
Companies and the individual contacts at such suppliers and customers;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | details
and terms of the Agreements with suppliers and customers of the Company or of any other
Group Companies;
|--- |  | ----------------------------------------------------------------------------------------------------------------

|(d) |  | secret
development manufacturing or production processes and know-how employed by the Company or
any other Group Companies or their respective suppliers; and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page
5
|------

|
|

|(e) |  | confidential details as to the design of the products and inventions or
processes relating to the provision of services or developments relating to
future products and services of the Company or of any other Group Companies or
those of their respective suppliers.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10.2 These restrictions
shall not apply to any disclosure or use authorised by the Board or required by
law or by the requirements of any regulatory or other authority to which the
Company or any other Group Company is subject.


10.3 These restrictions
shall not apply to information which is already in the public domain other than
in cases where such information has become public as a result of a breach by you
of these restrictions.


10.4 These restrictions
shall not restrict you from using your own personal skill in any business in
which you may lawfully be engaged after termination of the Employment.


STATUTORY
PROVISIONS


11. Additional provisions, details
of which the Company is required by statute to provide you, are set out in Schedule 2 to
this Agreement.


TERMINATION


Summary
termination


12.1 The Company may
terminate the Employment by immediate notice in writing and without payment of
any kind other than salary and bonus accrued at the date of termination:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | if
in the reasonable opinion of the Board you are guilty of any:
|--- |  | ----------------------------------------------------------------

| |  | (i) |  | serious
misconduct;
| |  | --- |  | -------------------

| |  | (ii) |  | persistent
misconduct continuing after demand for cessation of such misconduct is delivered in
writing by the Board or by the Company Secretary on instruction from the Board; or
| |  | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | if
you commit any material breach of any material provision of this Agreement;
|--- |  | ------------------------------------------------------------------------------

|(c) |  | if
you neglect or refuse to carry out any material part of your duties (other than for a
reason mentioned in Clause 12.2);
|--- |  | --------------------------------------------------------------------------------------------------------------------------

|(d) |  | if
you engage in any conduct which brings or is likely to bring the Company or any other
Group Companies, in the reasonable opinion of the Board, into disrepute;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | if you become bankrupt or enter into a composition with your creditors or apply
for a receiving order or have a receiving order made against you;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------

|Page
6
|------

|
|

|(f) |  | if
you become prohibited by law from being a director; or
|--- |  | ---------------------------------------------------------

|(g) |  | if
you terminate your directorship of the Company without the consent of the Board.
|--- |  | -----------------------------------------------------------------------------------

|Termination by
the Company through illness


12.2 The Company may
terminate the Employment if you are prevented by illness (including mental
illness) or injury from attending to your duties for more than 365 days in
aggregate in any one period of 24 consecutive calendar months. The Company will
not terminate the Employment pursuant to this Clause 12.2 if, as a result,
you would or may forfeit any entitlement to benefits under the permanent health
insurance scheme referred to in Schedule 1 unless it has used all reasonable
endeavours to try to procure the continuation of cover under that scheme.


Termination
through loss of directorship


12.3 If you are removed
from the office of director of the Company, or the Company fails in
general meeting to re-elect you as a director of the Company (if, under the
Articles of Association or other constitutional documents for the time being of
the Company as the case may be, you are obliged to retire by rotation or
otherwise), then the Company may elect that the Employment shall terminate
immediately without prejudice to the right of either party to this Agreement to
treat any act or omission causing such removal from office as a breach of this
Agreement.


Termination on
change of control


12.4 Notwithstanding the
provisions of Clause 12.5, you may terminate the Employment by giving the
Company one months notice in writing, such notice to be given within three
months after a Change of Control unless a third party acquiring control of more
than 50% of the voting rights of the Company has agreed to adopt the Reuters
Trust Principles and the rights and duties of the Reuters Trustees as set out in
the Memorandum and Articles of Association of the Company and in the Memorandum
and Articles of Association of Reuters Founders Share Company Limited and to use
its best endeavours to procure that the Principles and such rights and duties
are observed and upheld within the Company and any holding company of the
Company. A Change of Control shall for the purpose of this Agreement occur where
more than 50% of the voting rights of the Company become controlled by any third
party (including persons acting in concert but excluding Reuters Founders Share
Company Limited) or the Company sells or otherwise disposes of all or
substantially all of its assets with the approval of the Companys
shareholders, other than for the purposes of a reconstruction or reorganisation
in which (A) the ultimate ownership of the Company or substantially all its
assets is unaffected or (B) a new holding company for the Company is created,
where the new holding company has substantially the same shareholders and
proportionate shareholdings as those of the Company immediately prior to the
interposition of the new holding company.


Page
7
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Termination in
other circumstances


12.5 Subject to earlier termination
in accordance with the provisions of this Clause, the Employment will continue
until terminated:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | by
the Company giving you 12 monthswritten notice; or
|--- |  | ------------------------------------------------------

|(b) |  | by
you giving the Company 12 monthswritten notice,
|--- |  | ---------------------------------------------------

|such notice to expire not earlier
than 1 August 2002.


The Company may, in its
sole discretion, elect to terminate the Employment before 1 August 2002 and/or
without giving you notice or the full period of notice required by 12.5 (a) in
which event you will be entitled to receive a payment calculated in accordance
with Clause 12.6.


Liquidated
damages


12.6 This Clause applies if:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the Employment is terminated by the Company otherwise than a termination (i) in
accordance with Clause 12.1 or (ii) where removal from office takes place in
circumstances justifying summary termination under Clause 12.1, in accordance
with Clause 12.3 or (iii) in accordance with Clause 12.5 unless the final
sentence of Clause 12.5 applies in which case this Clause will apply;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | you
are constructively dismissed which for these purposes shall include (without limitation):
|--- |  | ---------------------------------------------------------------------------------------------

| |  | (i) |  | the
assignment to you of any duties inconsistent in any respect with your position (including
status, offices, titles and reporting requirement), authority, duties or
responsibilities; or
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (ii) |  | any
other action by the Company which results in a diminution in such position, authority,
duties or responsibilities, but excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by you; or
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | you
terminate the Employment under Clause 12.4.
|--- |  | -----------------------------------------------

|Where this Clause applies,
the Company will (subject to the remainder of this Clause) pay to you by way of
liquidated damages: (1) if the termination occurs prior to 1 August 2001 an
amount equal to 2A-B and (2) if the termination occurs on or after 1 August
2001 an amount equal to A


where A is the aggregate of:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (i) |  | your
annual salary immediately prior to the date of termination of the Employment;
| |  | --- |  | ----------------------------------------------------------------------------------

|Page
8
|------

|
|

| |  | (ii) |  | the
amount of pension contributions made by the Company on your behalf or to you in the last
financial year of the Company preceding the date of termination; and
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (iii) |  | the
average of the last three annual bonuses earned by you pursuant to paragraph 1 of
Schedule 1 to this Agreement in the last three complete financial years of the Company
preceding the date of termination.
| |  | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|and B is the amount of
salary, pension contributions and (if applicable) bonus paid to you or on your
behalf whilst your Employment subsisted.


In relation to (iii) above,
where there have been fewer than three complete financial years of the Company
during the Employment, the averaging shall be by reference to the number of
complete financial years which there have been during the Employment. Where
there has been less than one complete financial year of the Company during the
Employment, (iii) above shall be determined on the basis of the annualised bonus
earned by you for the period of the Employment or, if for any reason that is
unascertainable, on the basis of the bonus earned by the predecessor Finance
Director of the Company in 1999.


In the event that the
Company requires you to work only part of the notice period required by Clause
12.5 (a), the liquidated damages payment under this Clause 12.6 will be reduced
by an amount equal to the salary, pension contributions and (if applicable)
bonus paid to you or on your behalf in respect of the period of notice worked.


In the event that the
Employment is terminated in accordance with Clause 12.2, liquidated damages
payment under this Clause 12.6 will be reduced by an amount equal to the amount
of any benefit payable under the permanent health insurance scheme referred to
in Schedule 1, if termination occurs prior to 1 August 2001 for the period to 1
August 2002 and if termination occurs on or after 1 August 2001 for the period
of 12 months following the date of termination.


The payment will be
conditional on you not bringing any claims before a court or tribunal relating
to the Employment and/or its termination. The payment will be made in two
stages. The total amount, less a deduction of £60,000, willbe paid
within 14 days of the end of the Employment and the remaining balance of
£60,000 will be paid within four months of the end of the Employment, in
each case less any necessary withholdings. You agree to accept the same in full
and final settlement of all and any claims or rights of action that you have or
may have against the Company and against any other Group Company and against
their respective officers and employees in connection with the Employment or its
termination.


Return of
documents


12.7 On termination of the
Employment for any reason or, at the request of the Company, when notice to
terminate the Employment is given, you must immediately deliver to the Company
(without keeping any copies):


Page
9
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|(a) |  | all
documents, papers and materials and any other property of the Company and of any other
Group Companies; and
|--- |  | ---------------------------------------------------------------------------------------------------------------

|(b) |  | all
documents or other media on which confidential information about the Company and any
other Group Companies is recorded,
|--- |  | ---------------------------------------------------------------------------------------------------------------------------

|in your possession or under your
control.


Resignation as
a director


12.8 On termination of the
Employment for any reason, you must immediately, at the request of the Company
resign your office as a director of the Company and of any other Group Company
without compensation for loss of office but without prejudice to any rights
which you may have to treat such request as a breach of this Agreement.


Share schemes


12.9 It is acknowledged
that you may, during the Employment, be granted rights upon the terms and
subject to the conditions of the rules from time to time of the Reuters Group
PLC Long Term Incentive Plan or any other profit sharing, share incentive, share
option, bonus or phantom option scheme operated by the Company or any other
Group Company with respect to shares in the Company or any other Group Company.
If, on termination of the Employment, whether lawfully or in breach of contract
you lose any of the rights or benefits under such schemes (including rights or
benefits which you would not have lost had the Employment not been terminated)
you shall not be entitled, by way of compensation for loss of office or
otherwise howsoever, to any compensation for the loss of any rights under any
such scheme.


GARDEN LEAVE
AND SUSPENSION


13.1 The Company may at any
time or from time to time suspend you from the performance of your duties and/or
exclude you from any of the premises of the Company or of any other Group
Company:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | during
any period of notice or any part of a period of notice as specified in Clauses 12.4 or
12.5; or
|--- |  | ------------------------------------------------------------------------------------------------------

|(b) |  | in circumstances in which the Company reasonably believes that you are guilty of
misconduct or are in breach of this Agreement and in order that the
circumstances giving rise to that belief may be investigated.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13.2 The Company is not
required to give any reason for suspending or excluding you. Your salary and
benefits will not cease to be payable by reason only of such suspension or
exclusion.


13.3 During any period of
suspension or exclusion, you will not contact or deal with customers, suppliers
or employees of the Company or of any other Group Company or enter onto the
premises of the Company or of any Group Company without the prior written
consent of the Chief Executive of the Company.


Page
10
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|CONTINUING
OBLIGATIONS


Non-representation


14.1 You will not at any
time after the termination of the Employment directly or indirectly represent
yourself as being in any way connected with or interested in the business of the
Group (except, if it is the case, as a shareholder of the Company or as a
director of the Company).


Non-solicitation
of employees


14.2 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company or
employ or engage any employee of the Company or of any other Group Company with
whom you had business dealings or who reported to you, directly or indirectly,
during the period of 12 months preceding the date of termination of the
Employment and who is or was employed or engaged by the Company or by any other
Group Company:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | as
a director or in a managerial or technical capacity; or
|--- |  | ----------------------------------------------------------

|(b) |  | you know (or ought reasonably to know) could materially damage the interests of
the Company or any other Group Company if he became employed in any business in
competition with the business of the Company or of any other Group Company.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Non-solicitation
of business


14.3 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company the
business or custom of any firm, company or other person who, during the period
of 12 months preceding the date of termination of the Employment, was a customer
of the Company or of any other Group Company with whom you had business dealings
or about whom you became informed or over whom you had influence in the course
of the Employment during that period, with a view to providing goods or services
which would compete with the business of the Company or of any other Group
Company carried on at the date of termination of the Employment and with which
you were materially involved during that period.


Non-dealing


14.4 You must not for a
period of six months after the termination of the Employment deal with any
person, firm or company who during the period of 12 months preceding the date of
termination of the Employment was a customer or potential customer of the
Company or of any other Group Company and (in the case of a customer) to whom
you provided services on behalf of the Company or any other Group Company or (in
the case of a potential customer) with whom you had business dealings with a
view to obtaining business for the Company or any other Group Company and in
each case with whom you had business dealings or about whom you became informed
or over whom you had influence in the course of the Employment during that
period, with a view to providing goods or services which would compete with the
business of the Company or of any other Group Company carried on at the date of
termination of the Employment and with which you were materially involved during
that period.


Page
11
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Non-competition


14.5 You must not, for a
period of six months after the termination of the Employment, be engaged in or
concerned in any capacity in any business concern which is in competition with
the business of the Company or of any other Group Company. A list of such
business concerns as at the dateof this Agreement is set out in Part 1
of Schedule 3 to this Agreement. Unless you have the prior approval of the
Chairman and the Chief Executive of the Company you may not, for a period of six
months after the termination of the Employment, be engaged in or concerned in
any capacity in any of the business concerns named in the lists set out in Parts
2 and 3 of Schedule 3 of this Agreement. The lists in Schedule 3 may be amended
by the Board acting reasonably (provided that the number of business concerns
included in Schedule 3 at any one time shall not exceed 15) and each such
amendment shall be notified to you from time to time. This Clause shall not
restrain you from being engaged or concerned in any business concern in so far
as your duties or work relate solely to services or activities of a kind with
which you were not concerned to a material extent during the period of six
months preceding the date of termination of the Employment.


Extension to
other persons


14.6 The obligations
imposed on you by this Clause 14 extend to you acting not only on your own
account but also on behalf of any other firm, company or other person and shall
apply whether you act directly or indirectly.


Acknowledgement
of reasonableness


14.7 The restrictions
contained in this Clause 14 are considered by you and the Company to be
reasonable in all the circumstances. Each part of this Clause constitutes an
entirely separate and independent restriction and the duration, extent and
application of each of the restrictions are not greater than is necessary for
the protection of the commercial interests of the Group and their stable trained
workforce.


No disparaging
statements


14.8 Each party agrees
during, and after termination of, the Employment not to make, publish or cause
to be made, published or issued or otherwise communicate to any third party any
disparaging or derogatory statements to any third party concerning you or the
Company or any Group Company or any of its or their current executives,
officers, employees, agents or consultants, provided that nothing in this
Agreement will prevent you or the Company from disclosing information as
required by law or in order to take professional advice or as ordered by a court
of competent jurisdiction.


Page
12
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|WAIVER


15. Any delay or forbearance by the
Company in exercising any right of determination of this Agreement shall not constitute a
waiver of it.


AMENDMENTS


16. No amendment or waiver
of any of the provisions of this Agreement shall be effective unless made in
writing and signed by you and a director or the Company Secretary of the
Company.


NOTICES


17. Any notice required to be served
under this Agreement may be given either personally, by fax or by registered post:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | to
the Company at its registered office for the time being; or
|--- |  | --------------------------------------------------------------

|(b) |  | to
you at the address at the start of this Agreement or your last known address.
|--- |  | --------------------------------------------------------------------------------

|Any notice to be given
under this Agreement to you may be served by being handed to you personally or
by being sent by recorded delivery first class post or by fax to you at your
usual or last known address; and any notice to be given to the Company may be
served by being marked for the attention of the Company Secretary and by being
left at or by being sent by recorded delivery first class post or by fax to its
registered office for the time being. Any notice served by post shall be deemed
to have been served on the second day (excluding Sundays and statutory holidays)
next following the date of posting and in proving such service it shall be
sufficient proof that the envelope containing the notice was, in your case,
addressed to you at your usual or last known address and, in the case of the
Company, addressed to it marked for the attention of the Company Secretary at
its registered office for the time being, and in either case posted as a prepaid
letter by recorded delivery. Any notice served by fax shall be deemed to have
been served twelve hours after the time of despatch.


OTHER
AGREEMENTS


18. You acknowledge and
warrant that there are no Agreements or arrangements whether written, oral or
implied between the Company or any other Group Company and you relating to your
employment or the Employment other than those which are expressly set out in
this Agreement and that you are not entering into this Agreement in reliance on
any representation not expressly set out in this Agreement.


GOVERNING LAW


19. This Agreement will be
governed by and construed under English law without regard to its conflicts of
laws provisions, and each of the parties hereby irrevocably agrees for the
exclusive benefit of the Company that the Courts of England are to have
jurisdiction to settle any disputes which may arise out of or in connection with
this Agreement.


Page
13
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|WITHHOLDING TAX


20. All amounts payable to
you under this Agreement shall be subject to applicable withholding of income,
salary and such other withholdings that the Company determines are required to
be withheld in accordance with applicable laws.


AS WITNESSwhereof
this Agreement has been signed by or on behalf of the parties to it on the day
and year first above written.


Page
14
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SCHEDULE 1


OTHER
BENEFITS


BONUS


1. You will be entitled to
participate in an annual bonus plan to be administered by the Remuneration
Committee. Unless otherwise agreed by the Remuneration Committee, the maximum
annual bonus payable under this plan will be an amount up to 70% of your base
salary (from 1 July 2001, 100% of your base salary). The criteria relating to
your performance and that of the Company which are to be used to determine the
amount of the bonus in any year will be laid down by the Remuneration Committee
at the commencement of each year and the bonus for that year will be paid as
soon as reasonably practicable after the relevant results have been determined.
The Remuneration Committee reserves the right to amend the quantitative criteria
annually and/or to discontinue the bonus arrangement. On termination of the
Employment, other than termination pursuant to Clause 12.1 or termination in
respect of which Clause 12.6 applies, you shall be entitled to a pro-rated
amount of bonus, being such proportion of average bonus (calculated according to
Clause 12.6(iii)) as is the same as the proportion of the last financial year
during which the Employment has subsisted.


SHARE OPTION
PLANS


2.1 You will be eligible
for membership of the Companys Save As You Earn Share Option Scheme and of
any other all employee share option plan operated by the Company and approved by
the Companys shareholders. Participation in such scheme and plans is, save
as otherwise stipulated in their rules, at the sole discretion of the Board or
the Remuneration Committee.


2.2 If you are relocated to
a country outside the United Kingdom, you are entitled to participate in any
equivalent scheme or plan operated by a Group Company in that country.


HOLIDAYS


3.1 The Companys
holiday year runs from 1 January to 31 December. In addition to the bank and
other public holidays, you will be entitled to 30 working days paid
holiday in each holiday year. In the first year of the Employment, the annual
entitlement will be pro rata based on the holiday year.


3.2 Your annual holiday may
be taken at such time or times as are reasonably appropriate having regard to
the business needs of the Company.


3.3 Holidays not taken in
the year of entitlement will be lost unless carried forward with the agreement
of the Chief Executive of the Company.


3.4 On termination of the
Employment, you will be entitled to pay in lieu of any unpaid holiday or be
required to pay the Company any salary received for holiday taken in excess of
your contractual entitlement. You may be required to take any untaken holiday
during your notice period.


Page
15
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PENSION SCHEMES


4.1 You are entitled to
join the Reuters UK Retirement Plan subject to the trust deed and rules of the
scheme from time to time in force.


4.2 Subject to any limits
imposed by the Inland Revenue from time to time, the Company will pay
contributions to the Company pension scheme as set out in your annual statement
of remuneration and benefits.


4.3 A contracting out certificate is
in force in respect of the Employment.


4.4 In addition the Company
will contribute 20% of your base salary above the pensions cap imposed by the
Inland Revenue from time to time (such contribution to be taxable) to an
appropriate retirement benefit scheme of your choice.


LONG TERM
INCENTIVE PLAN


5. You are entitled to be a
member of the Reuters Group PLC Long Term Incentive Plan or any plan operated by
the Company in succession to that plan (as notified to you from time to time)
for so long as the Plan or such plan may be operated by the Company, and the
Company shall pay to you benefits under the Plan or such plan, subject to the
conditions of the Companys policy on retention of LTIP awards on early
retirement (as notified to you from time to time).


DISABILITY
INSURANCE


6. You shall be entitled to
membership of, and the Company shall pay to you benefits under, the
Companys disability insurance scheme, subject to the terms of that scheme
and of any related policy of insurance as in force from time to time.


LIFE ASSURANCE
AND PERMANENT HEALTH SCHEME


7.1 The Company will
provide life assurance to you in addition to that provided under the Reuters UK
Retirement Plan so that in aggregate you are assured for the value of four times
annual salary, subject to your being acceptable for insurance at rates normal
for your age and subject to the rules of the relevant life assurance
arrangements.


7.2 You (your spouse and
any unmarried children under 21 (or under 24 if in fulltime education)) are
entitled to membership of the Companys permanent health insurance scheme
subject to the rules of the scheme and of any related policy of insurance.


7.3 If you wish, as an
alternative to membership of the Companys scheme, the Company will bear
the costs of you being a member of another permanent health insurance scheme, up
to the value of the benefits available to you under the Companys scheme.


Page
16
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7.4 You are entitled to
receive an annual health check at a cost to the Company of no more than
£500 (or as increased and notified to you from time to time).


COMPANY CAR


8. The Company will provide
you with a car (or cash in lieu if you so elect) in accordance with the terms of
the Companys policy on executive directors cars (as notified to you
from time to time) for business and personal use and will bear the expenses of
taxing, insuring, repairing and maintaining the car. You agree to comply in full
with the Companys policy on executive directors cars, failing which
the Company may require you to return the car immediately.


CHAUFFEUR-DRIVEN
CAR


9. You shall be entitled to
the non-exclusive use of a chauffeur-driven car provided by the Company (subject
to availability) at no cost to you for purposes reasonably connected with the
Companys business or as otherwise approved by the Chief Executive of the
Company.


DIRECTORS
INDEMNITY AND INSURANCE


10. You shall have the benefits of:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the
indemnity contained in regulation 155 of the Companys Articles of Association;
|--- |  | -----------------------------------------------------------------------------------

|(b) |  | any similar indemnity in respect of liabilities incurred by Group Company
directors in their capacity as such contained in the constitutional documents of
any other Group Company for so long as you are a director or officer of such
other Group Company; and
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | (subject to their terms) any insurance policies which shall be maintained by the
Company in respect of liabilities incurred by Group Company directors in their
capacity as such.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

## OTHER BENEFITS

|11. |  | You shall have such other benefits as may be made available to you by the
Company from time to time, including but not limited to the use of Reuters
products, mobile telephone and other equipment and membership of professional
bodies.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page
17
|-------

|SCHEDULE 2


ADDITIONAL
STATUTORY PROVISIONS


EMPLOYMENT RIGHTS
ACT 1996


Additional particulars
required to be disclosed:


CONTINUOUS
EMPLOYMENT


1. The Employment is not continuous
with any other period of employment with the Company or with any other Group Company.


INJURY AND SICKNESS
PAY


2. If you are absent from work
because of sickness or injury, you must:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | notify
the Company as soon as possible on the first morning of absence and inform the Company of
your expected date of return;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------

|(b) |  | complete
and return to the Company a self-certification form in respect of the first five working
days of any sickness absence;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------

|(c) |  | provide the Company with a medical certificate from your GP or other registered
practitioner for periods of absence of seven days (including weekends) in excess
and with medical certificates for each subsequent week of sickness absence;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | if
requested by the Company, undergo a medical examination at the expense of the Company
with a medical practitioner nominated by the Company; and
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | if requested by the Company give written permission to the Company to have
access to any medical or health report in its complete form prepared by any
health professional on your physical or mental condition.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Subject to the above, you
will be entitled at the discretion of the Company to up to 365 days sick
pay (including statutory sick pay) in any 24 month rolling period. Sick pay will
be calculated at your normal rate of pay and benefits.


DISCIPLINARY
RULES AND GRIEVANCE PROCEDURE


If at any time you have a
grievance relating to the Employment, you may seek redress orally or in writing
by, in the first instance, referring the grievance to the Chairman of the Board.
If the grievance remains unresolved, you may appeal to the Board and the Board
shall deal with the matter by discussion and by majority decision of those
present at the relevant meeting of the Board. The Boards decision shall be
final and binding.


Page
18
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|COLLECTIVE
AGREEMENTS


4. There are no collective
agreements with trade unions which directly affect your terms and conditions.


Page
19
|------------------------------------------------------------------------------------------------------------------------------------------

|SCHEDULE 3


COMPETING
BUSINESS CONCERNS


AS AT THE DATE
OF THIS AGREEMENT


Part 1


Competing
Business Concerns
|------------------------------------------------------------------------------------------------------------------

| | Bloomberg
L.P.
| | --------------

| | Pearson
PLC
| | -----------

| | Quick
Corporation of Japan
| | --------------------------

| | AOL
Time Warner
| | ---------------

| | Telekurs
A.G.
| | -------------

| | SunGard
| | -------

| | The
Electronic Broking Service
| | ------------------------------

|Part 2


Companies with
Divisions which compete with Reuters
|------------------------------------------------------------

| | The
Thomson Corporation
| | -----------------------

| | The
McGraw Hill Companies
| | -------------------------

| | The
Dun & Bradstreet Corporation
| | --------------------------------

| | Reed
Elsevier P.L.C./Elsevier N.V.
| | ----------------------------------

|Part 3


Companies
with which Reuters has strategic relationships
|-----------------------------------------------------------------

| | Multex.com,
Inc.
| | ----------------

| | Yahoo!
Inc.
| | -----------

|Page
20
|-------

|
|

|SIGNED byfor and on behalf ofREUTERS GROUP PLCin the presence of:- | ) ) Sir Christopher Hogg))
|------------------------------------------------------------------ | --------------------------

|SIGNED as
a DEEDand DELIVERED byDAVID GRIGSONin the presence of :- | ))))
|------------------------------------------------------------------ | ----

|Page
21
|-------

|31st December, 2001
REUTERS
GROUP PLC
GEOFFREY
WEETMAN
SERVICE
AGREEMENT
|------------------------------------------------------------------------

|Reuters Remuneration Committee
Strictly Confidential  No Further Copying


TABLE OF
CONTENTS
|---------------------------------------------------------------------------------------------

|    |  | Page                       
|--- |  | ---------------------------
|1.  |  | Definitions                
|2.  |  | Duration of employment     
|3.  |  | Role, Powers and Duties    
|4.  |  | Normal Place of Work       
|5.  |  | Hours of Work              
|6.  |  | Salary and Benefits        
|7.  |  | Expenses                   
|8.  |  | Other Interests            
|9.  |  | Inventions and Improvements
|10. |  | Confidentiality            
|11. |  | Statutory Provisions       
|12. |  | Termination                
|13. |  | Garden Leave and Suspension
|14. |  | Continuing Obligations     
|15. |  | Waiver                     
|16. |  | Amendments                 
|17. |  | Notices                    
|18. |  | Other Agreements           
|19. |  | Governing Law              
|20. |  | Withholding Tax            

|            |  |                                   
|----------- |  | ----------------------------------
|SCHEDULE 1: |  | Other Benefits                    
|SCHEDULE 2: |  | Additional Statutory Provisions   
|SCHEDULE 3: |  | Competing Business Concerns       
|SCHEDULE 4: |  | Pension and Life Assurance Schemes

|THIS AGREEMENT is made on 31st
December, 2001BETWEEN
|----------------------------------------------------

|(1) |  | REUTERS
GROUP PLC registered in England with No. 3296375 whose registered office is at 85 Fleet
Street, London, EC4P 4AJ (the Company); and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------

|(2) |  | GEOFFREY
ARTHUR WEETMAN of Tyseley, Grimms Hill, Great Missenden, Buckinghamshire, HP16 9BG (you).
|--- |  | --------------------------------------------------------------------------------------------------

|IT IS AGREED as follows:


Definitions


1. In this Agreement the following
expressions shall have the following meanings:


Board
means the board of directors of Reuters Group PLC or a duly constituted
committee of the board of directors;


Employmentmeans your employment in
accordance with the terms and conditions of this Agreement;


Groupmeans the Company, any holding company of the Company and any
subsidiary of the Company or of any such holding company (with holding company
and subsidiary having the meanings given to them by section 736 of the
Companies Act 1985). Group Company and Group
Companies shall be construed accordingly; and Remuneration
Committee means the remuneration committee of the Board.


Duration of
employment


2. The Employment will
begin on the date of this Agreement and will continue until terminated in
accordance with Clause 12 below.


Role, powers
and duties


3.1 You will serve the
Company as Group Human Resources Director, or in such other capacity of a like
status as the Company may require.


3.2 Subject to Clause 4,
you will exercise such powers and perform such duties in relation to the
business of the Company and the Group, being duties which are appropriate to
your senior status, as may be assigned to you by the Chief Executive of the
Company after taking into account the opinion of the Board.


3.3 During the Employment you will:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | devote
substantially the whole of your working time, attention and abilities to carrying out
those duties in a proper, loyal and efficient manner;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | use
all reasonable endeavours to promote the interests of the Company and any other Group
Company which you may be required to serve under the terms of this Agreement;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|(c) |  | have due regard to the Reuters Trust Principles and to the rights and duties of
the Reuters Trustees as set out in the Memorandum and Articles of Association of
the Company and the Memorandum and Articles of Association of Reuters Founders
Share Company Limited insofar as, by the proper exercise of your powers (and in
accordance with your other duties) as director of the Company, the Reuters Trust
Principles are capable of being observed by you;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | have due regard to the provisions of the Reuters Code of Conduct (as notified to
you from time to time) and, so far as reasonably practicable in the performance
of your duties, observe all material provisions of that Code;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | comply
with the Reuters Share Dealings Code (as notified to you from time to time); and
|--- |  | ---------------------------------------------------------------------------------------

|(f) |  | have
due regard to the provisions of all other policies which are applied to you by the
Company, as notified to you from time to time.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------

|3.4 You are entitled to
take independent professional advice, at the expense of the Company, where such
advice is reasonably required for the furtherance of your duties as a director
of the Company and provided that before taking such advice you obtain the
written consent of one other director and send a copy of such consent to the
Company Secretary and that the Companys expenditure on such advice does
not exceed £50,000 per annum.


Normal place
of work


4. Your normal place of
work is at the Companys head office. You may be required, in the
performance of your duties, to travel in the United Kingdom and overseas.
However, having given you reasonable notice, the Company may reasonably require
you to perform your duties at the offices of another Group Company in a major
financial centre outside the United Kingdom, such as New York, in which case you
shall be offered expatriate benefits appropriate to your senior status.


Hours of work


5. You will work the
Companys normal working hours together with such additional hours as may
reasonably be required for the proper performance of your duties.


Salary and
benefits


6.1 You will be paid a
salary at such rate as is set out in an annual letter to you from the Company
and as confirmed in your annual statement of remuneration and benefits.


6.2 Your salary will accrue
from day to day and be payable in arrears by equal monthly instalments on or
about the fifteenth day of each month.


Page 2
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6.3 You are not entitled to
any other salary or fees as director or employee of the Company or any other
Group Company and you must, as the Company directs, either waive your rights to
any such salary or fees or account for the same to the Company (failing which it
will be deducted from your salary).


6.4 Your salary and
benefits will be reviewed annually by the Remuneration Committee. Any change in
the level of your salary and benefits as a result of the review (which will not
be downwards) will be effective from 1 January of the year following the review
(unless you and the Chairman of the Remuneration Committee agree otherwise).


6.5 In addition to the
above, you will be entitled to receive those benefits set out in Schedule 1 to
this Agreement.


6.6 During or after the
termination of the Employment for whatever reason, the Company may deduct from
your pay any sums outstanding to the Company or to any other Group Company from
you including, without limitation, any advance of pay or loans or floats for
expenses.


Expenses


7. Subject to the
Companys policies on executive directors expenses and executive
directors spouse expenses (as notified to you from time to time), the
Company will reimburse to you all reasonable travelling, hotel and other
out-of-pocket expenses (including first class travel expenses) properly incurred
by you and your spouse in the execution of the duties of the Employment against
production of valid receipts and properly completed expense reports.


Other interests


8.1 During the Employment you will
be entitled to accept appointments as a non-executive director of companies other than a
Group Company subject to:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the
prior written consent of the Chief Executive of the Company (such consent to be confirmed
by the Board); and
|--- |  | ----------------------------------------------------------------------------------------------------------------

|(b) |  | the
Companys policy on non-executive directorships (as notified to you from time to time).
|--- |  | -------------------------------------------------------------------------------------------

|You may retain any fees
received as a non-executive director provided they are paid in cash rather than
in stock, other securities or options. Days of service as a non-executive
director will not be deducted from your holiday entitlement provided that you
shall not spend more than ten working days in aggregate in any year in such
service. At any time during the Employment the Company may, with reasonable
cause, require you to resign any non-executive directorship held. Reasonable
cause for this purpose shall include but not be limited to a conflict of
interest and such other reason or reasons as may be specified in the Reuters
Code of Conduct (as notified to you from time to time).



Page 3
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|8.2 During the Employment
you will not be directly or indirectly concerned in any business, trade,
profession or other occupation (whether as an employee, consultant, agent,
director or otherwise) of a similar nature to or competitive with that carried
on by the Company or any Group Companies except:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | as
a representative or officer of a Group Company;
|--- |  | --------------------------------------------------

|(b) |  | as
a non-executive director under Clause 8.1;
|--- |  | ---------------------------------------------

|(c) |  | by virtue of your being interested in securities not representing more than one
per cent of a companys issued securities of any class which are either (i)
listed on a recognised stock exchange or dealt on an unlisted securities market
or an alternative investment market or authorised for quotation in a recognised
inter-dealer quotation system or (ii) of a private company whose shares the
Chief Executive of the Company has authorised you to hold; or
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | with
the prior written consent of the Board.
|--- |  | --------------------------------------------

|8.3 You may serve on the
board of religious, charitable or public service organisations or otherwise be
engaged in the activities of such organisations provided so serving or being so
engaged does not prejudice your ability to fulfil your duties under this
Agreement.


Inventions and
improvements


9.1 It will be part of your normal
duties at all times:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | to consider in what manner and by what new methods or devices the products,
services, processes, equipment or systems of the Company and other Group
Companies with which you are concerned or for which you are responsible might be
improved; and
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | promptly to give to the Company Secretary of the Company full details of any
invention or improvement which you may from time to time make or discover in the
course of your duties.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Subject to the Patents Act
1977, the Company will be entitled free of charge to the sole ownership of any
such invention or improvement and to the exclusive use of it.


9.2 You assign to the
Company (or to such other Group Company as the Company may direct) all
copyrights, designs and other proprietary rights, if any, which may be so
assigned in respect of all works and designs created by you or relating to your
responsibilities during the Employment for the full term of those rights to the
intent that those rights will immediately upon the completion of the relevant
work vest with the Company (or with such other Group Company as the Company may
direct).


9.3 At the request and cost
of the Company, you will do all such acts and things as may in the opinion of
the Board be necessary or conducive to vest such rights in the Company (or in
such other Group Company as it may direct). You irrevocably authorise the
Company for the purposes of this Clause to make use of your name and to sign and
to execute any documents or do any thing on your behalf.


Page 4
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9.4 You will not do
anything knowingly to imperil the validity of any patent or protection or any
application for a patent or protection.


9.5 You will not either
during or after the termination of the Employment exploit or assist others to
exploit any invention or improvement which you may from time to time make or
discover in the course of your duties or (unless it shall have become public
knowledge) make public or disclose any such invention or improvement or give any
information in respect of it except to the Company or as the Company may direct.


9.6 You irrevocably waive in favour
of the Company (and in favour of such other Group Company as the
Company may direct), its licensees and successors-in-title any and all moral
rights in any works (existing or future) which are the subject of copyright made
by you in the course of the Employment.


Confidentiality


10.1 During and after the
termination of the Employment you will at all times keep confidential all
private information about the Company and other Group Companies including
technical and financial information which you may have acquired while in the
employment of the Company or of any other Group Company. You will not use such
information for your own benefit or for the benefit of any business not within
the Group. You will keep such information confidential to yourself, to other
members of the Board and to anybody who needs such information in order to
properly discharge his duties to the Company or any Group Company. Such
information includes (without limitation) the following:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the business methods and information of the Company and any other Group
Companies (including, without limitation, prices charged, discounts given to
customers or obtained from suppliers, product development, marketing and
advertising programmes, costing, budgets, turnover, sales targets and other
financial information);
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | lists
and particulars of the suppliers and customers of the Company or of any other Group
Companies and the individual contacts at such suppliers and customers;
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | details
and terms of the Agreements with suppliers and customers of the Company or of any other
Group Companies;
|--- |  | ----------------------------------------------------------------------------------------------------------------

|(d) |  | secret
development manufacturing or production processes and know-how employed by the Company or
any other Group Companies or their respective suppliers; and
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | confidential details as to the design of the products and inventions or
processes relating to the provision of services or developments relating to
future products and services of the Company or of any other Group Companies or
those of their respective suppliers.
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page 5
|------

|10.2 These restrictions
shall not apply to any disclosure or use authorised by the Board or required by
law or by the requirements of any regulatory or other authority to which the
Company or any other Group Company is subject.


10.3 These restrictions
shall not apply to information which is already in the public domain other than
in cases where such information has become public as a result of a breach by you
of these restrictions.


10.4 These restrictions
shall not restrict you from using your own personal skill in any business in
which you may lawfully be engaged after termination of the Employment.


Statutory
provisions


11. Additional provisions,
details of which the Company is required by statute to provide you, are set out
in Schedule 2 to this Agreement.


Termination


Summary
termination


12.1 The Company may
terminate the Employment by immediate notice in writing and without payment of
any kind other than salary and bonus accrued at the date of termination:
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | if
in the reasonable opinion of the Board you are guilty of any:
|--- |  | ----------------------------------------------------------------

| |  | (i) |  | gross
misconduct;
| |  | --- |  | -----------------

| |  | (ii) |  | persistent
serious misconduct continuing after demand for cessation of such misconduct is delivered
in writing by the Board or by the Company Secretary on instruction from the Board; or
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | if
you commit any material breach of any material provision of this Agreement;
|--- |  | ------------------------------------------------------------------------------

|(c) |  | if
you neglect or refuse to carry out any material part of your duties (other than for a
reason mentioned in Clause 12.2);
|--- |  | --------------------------------------------------------------------------------------------------------------------------

|(d) |  | if
you engage in any conduct which brings or is likely to bring the Company or any other
Group Companies, in the reasonable opinion of the Board, into disrepute;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | if you become bankrupt or enter into a composition with your creditors or apply
for a receiving order or have a receiving order made against you;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------

|(f) |  | if
you become prohibited by law from being a director; or
|--- |  | ---------------------------------------------------------

|Page 6
|------

|
|

|(g) |  | if
you terminate your directorship of the Company without the consent of the Board.
|--- |  | -----------------------------------------------------------------------------------

|Termination by the Company through
illness


12.2 The Company may
terminate the Employment if you are prevented by illness (including mental
illness) or injury from attending to your duties for more than 365 days in
aggregate in any one period of 24 consecutive calendar months. The Company will
not terminate the Employment pursuant to this Clause 12.2 if, as a result,
you would or may forfeit any entitlement to benefits under the private
healthcare scheme referred to in Schedule 1 unless it has used all reasonable
endeavours to try to procure the continuation of cover under that scheme.


Termination through loss of
directorship


12.3 If you are removed
from the office of director of the Company, or the Company failsin
general meeting to re-elect you as a director of the Company (if, under the
Articles of Association or other constitutional documents for the time being of
the Company as the case may be, you are obliged to retire by rotation or
otherwise), then the Company may elect that the Employment shall terminate
immediately without prejudice to the right of either party to this Agreement to
treat any act or omission causing such removal from office as a breach of this
Agreement.


Termination on change of control


12.4 Notwithstanding the
provisions of Clause 12.5, you may terminate the Employment by giving the
Company one months notice in writing, such notice to be given within three
months after a Change of Control unless a third party acquiring control of more
than 50% of the voting rights of the Company has agreed to adopt the Reuters
Trust Principles and the rights and duties of the Reuters Trustees as set out in
the Memorandum and Articles of Association of the Company and in the Memorandum
and Articles of Association of Reuters Founders Share Company Limited and to use
its best endeavours to procure that the Principles and such rights and duties
are observed and upheld within the Company and any holding company of the
Company. A Change of Control shall for the purpose of this Agreement occur where
more than 50% of the voting rights of the Company become controlled by any third
party (including persons acting in concert but excluding Reuters Founders Share
Company Limited) or the Company sells or otherwise disposes of all or
substantially all of its assets with the approval of the Companys
shareholders, other than for the purposes of a reconstruction or reorganisation
in which (A) the ultimate ownership of the Company or substantially all its
assets is unaffected or (B) a new holding company for the Company is created,
where the new holding company has substantially the same shareholders and
proportionate shareholdings as those of the Company immediately prior to the
interposition of the new holding company.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page 7
|------

|Termination in other circumstances
|----------------------------------

|12.5 |  | Subject to earlier termination in accordance with the provisions of this Clause,
the Employment will continue until terminated:
|---- |  | -------------------------------------------------------------------------------------------------------------------------------

|(a) |  | by
the Company giving you 12 monthswritten notice; or
|--- |  | ------------------------------------------------------

|(b) |  | by
you giving the Company 12 monthswritten notice.
|--- |  | ---------------------------------------------------

|The Company may, in its
sole discretion, elect to terminate the Employment without giving you notice or
the full period of notice required by 12.5 (a) in which event you will be
entitled to receive a payment calculated in accordance with Clause 12.6.


Liquidated
damages


12.6 This Clause applies if:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the Employment is terminated by the Company otherwise than a termination (i) in
accordance with Clause 12.1 or (ii) where removal from office takes place in
circumstances justifying summary termination under Clause 12.1, in accordance
with Clause 12.3 or (iii) in accordance with Clause 12.5 unless the final
sentence of Clause 12.5 applies in which case this Clause will apply;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | you
are constructively dismissed which for these purposes shall include (without limitation):
|--- |  | ---------------------------------------------------------------------------------------------

| |  | (i) |  | the
assignment to you of any duties inconsistent in any respect with your position (including
status, offices, titles and reporting requirement), authority, duties or
responsibilities; or
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (ii) |  | any
other action by the Company which results in a diminution in such position, authority,
duties or responsibilities, but excluding for this purpose an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by you; or
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | you
terminate the Employment under Clause 12.4.
|--- |  | -----------------------------------------------

|Where this Clause applies,
the Company will (subject to the remainder of this Clause) pay to you by way of
liquidated damages an amount equal to the aggregate of:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (i) |  | your
annual salary immediately prior to the date of termination of the Employment;
| |  | --- |  | ----------------------------------------------------------------------------------

| |  | (ii) |  | the
amount of pension contributions made by the Company on your behalf or to you in the last
financial year of the Company preceding the date of termination; and
| |  | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | (iii) |  | the
average of the last three annual bonuses earned by you pursuant to paragraph 1 of
Schedule 1 to this Agreement in the last three complete financial years of the Company
preceding the date of termination.
| |  | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Page 8
|------

|In the event that the
Company requires you to work only part of the notice period required by Clause
12.5 (a), the liquidated damages payment under this Clause 12.6 will be reduced
by an amount equal to the salary, pension contributions and (if applicable)
bonus paid to you or on your behalf in respect of the period of notice worked.



In the event that the
Employment is terminated in accordance with Clause 12.2, liquidated damages
payment under this Clause 12.6 will be reduced by an amount equal to the amount
of any benefit payable under the private healthcare scheme referred to in
Schedule 1 for the period of 12 months following the date of termination.


The payment will be
conditional on you not bringing any claims before a court or tribunal relating
to the Employment and/or its termination. The payment will be made in two
stages. The total amount, less a deduction of £60,000, willbe paid
within 14 days of the end of the Employment and the remaining balance of
£60,000 will be paid within four months of the end of the Employment, in
each case less any necessary withholdings. You agree to accept the same in full
and final settlement of all and any claims or rights of action that you have or
may have against the Company and against any other Group Company and against
their respective officers and employees in connection with the Employment or its
termination.


Return of documents


12.7 On termination of the
Employment for any reason or, at the request of the Company, when notice to terminate the
Employment is given, you must immediately deliver to the Company (without keeping any
copies):
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | all
documents, papers and materials and any other property of the Company and of any other
Group Companies; and
|--- |  | ---------------------------------------------------------------------------------------------------------------

|(b) |  | all
documents or other media on which confidential information about the Company and any
other Group Companies is recorded,
|--- |  | ---------------------------------------------------------------------------------------------------------------------------

|in your possession or under your
control.


Resignation as a director


12.8 On termination of the
Employment for any reason, you must immediately, at the request of the Company
resign your office as a director of the Company and of any other Group Company
without compensation for loss of office but without prejudice to any rights
which you may have to treat such request as a breach of this Agreement.


Share schemes


12.9 It is acknowledged
that you may, during the Employment, be granted rights upon the terms and
subject to the conditions of the rules from time to time of the Reuters Group
PLC Long Term Incentive Plan or any other profit sharing, share incentive, share
option, bonus or phantom option scheme operated by the Company or any other
Group Company with respect to shares in the Company or any other Group Company.
If, on termination of the Employment, whether lawfully or in breach of contract
you lose any of the rights or benefits under such schemes (including rights or
benefits which you would not have lost had the Employment not been terminated)
you shall not be entitled, by way of compensation for loss of office or
otherwise howsoever, to any compensation for the loss of any rights under any
such scheme.


Page 9
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Garden leave
and suspension
|---------------------------

|13.1 |  | The Company may at any time or from time to time suspend you from the
performance of your duties and/or exclude you from any of the premises of the
Company or of any other Group Company:
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | during
any period of notice or any part of a period of notice as specified in Clauses 12.4 or
12.5; or
|--- |  | ------------------------------------------------------------------------------------------------------

|(b) |  | in circumstances in which the Company reasonably believes that you are guilty of
misconduct or are in breach of this Agreement and in order that the
circumstances giving rise to that belief may be investigated.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13.2 The Company is not
required to give any reason for suspending or excluding you. Your salary and
benefits will not cease to be payable by reason only of such suspension or
exclusion.


13.3 During any period of
suspension or exclusion, you will not contact or deal with customers, suppliers
or employees of the Company or of any other Group Company or enter onto the
premises of the Company or of any Group Company without the prior written
consent of the Chief Executive of the Company.


Continuing
obligations


Non-representation


14.1 You will not at any
time after the termination of the Employment directly or indirectly represent
yourself as being in any way connected with or interested in the business of the
Group (except, if it is the case, as a shareholder of the Company or as a
director of the Company).


Non-solicitation of employees


14.2 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company or
employ or engage any employee of the Company or of any other Group Company with
whom you had business dealings or who reported to you, directly or indirectly,
during the period of 12 months preceding the date of termination of the
Employment and who is or was employed or engaged by the Company or by any other
Group Company:




Page 10
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|
|

|(a) |  | as
a director or in a managerial or technical capacity; or
|--- |  | ----------------------------------------------------------

|(b) |  | you know (or ought reasonably to know) could materially damage the interests of
the Company or any other Group Company if he became employed in any business in
competition with the business of the Company or of any other Group Company.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Non-solicitation of business


14.3 You must not for a
period of six months after the termination of the Employment solicit, interfere
with or attempt to entice away from the Company or any other Group Company the
business or custom of any firm, company or other person who, during the period
of 12 months preceding the date of termination of the Employment, was a customer
of the Company or of any other Group Company with whom you had business dealings
or about whom you became informed or over whom you had influence in the course
of the Employment during that period, with a view to providing goods or services
which would compete with the business of the Company or of any other Group
Company carried on at the date of termination of the Employment and with which
you were materially involved during that period.


Non-dealing


14.4 You must not for a
period of six months after the termination of the Employment deal with any
person, firm or company who during the period of 12 months preceding the date of
termination of the Employment was a customer or potential customer of the
Company or of any other Group Company and (in the case of a customer) to whom
you provided services on behalf of the Company or any other Group Company or (in
the case of a potential customer) with whom you had business dealings with a
view to obtaining business for the Company or any other Group Company and in
each case with whom you had business dealings or about whom you became informed
or over whom you had influence in the course of the Employment during that
period, with a view to providing goods or services which would compete with the
business of the Company or of any other Group Company carried on at the date of
termination of the Employment and with which you were materially involved during
that period.


Non-competition


14.5 You must not, for a
period of six months after the termination of the Employment, be engaged in or
concerned in any capacity in any business concern which is in competition with
the business of the Company or of any other Group Company. A list of such
business concerns as at the dateof this Agreement is set out in Part 1
of Schedule 3 to this Agreement. Unless you have the prior approval of the
Chairman and the Chief Executive of the Company you may not, for a period of six
months after the termination of the Employment, be engaged in or concerned in
any capacity in any of the business concerns named in the lists set out in Parts
2 and 3 of Schedule 3 of this Agreement. The lists in Schedule 3 may be amended
by the Board acting reasonably (provided that the number of business concerns
included in Schedule 3 at any one time shall not exceed 15) and each such
amendment shall be notified to you from time to time. This Clause shall not
restrain you from being engaged or concerned in any business concern in so far
as your duties or work relate solely to services or activities of a kind with
which you were not concerned to a material extent during the period of six
months preceding the date of termination of the Employment.


Page 11
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Extension to other persons


14.6 The obligations
imposed on you by this Clause 14 extend to you acting not only on your own
account but also on behalf of any other firm, company or other person and shall
apply whether you act directly or indirectly.


Acknowledgement of reasonableness


14.7 The restrictions
contained in this Clause 14 are considered by you and the Company to be
reasonable in all the circumstances. Each part of this Clause constitutes an
entirely separate and independent restriction and the duration, extent and
application of each of the restrictions are not greater than is necessary for
the protection of the commercial interests of the Group and their stable trained
workforce.


No disparaging statements


14.8 Each party agrees
during, and after termination of, the Employment not to make, publish or cause
to be made, published or issued or otherwise communicate to any third party any
disparaging or derogatory statements to any third party concerning you or the
Company or any Group Company or any of its or their current executives,
officers, employees, agents or consultants, provided that nothing in this
Agreement will prevent you or the Company from disclosing information as
required by law or in order to take professional advice or as ordered by a court
of competent jurisdiction.


Waiver


15. Any delay or forbearance by the
Company in exercising any right of determination of this Agreement shall not constitute a
waiver of it.


Amendments


16. No amendment or waiver
of any of the provisions of this Agreement shall be effective unless made in
writing and signed by you and a director or the Company Secretary of the
Company.


Notices


17. Any notice required to be served
under this Agreement may be given either personally, by fax or by registered post:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | to
the Company at its registered office for the time being; or
|--- |  | --------------------------------------------------------------

|Page 12
|-------

|
|

|(b) |  | to
you at the address at the start of this Agreement or your last known address.
|--- |  | --------------------------------------------------------------------------------

|Any notice to be given
under this Agreement to you may be served by being handed to you personally or
by being sent by recorded delivery first class post or by fax to you at your
usual or last known address; and any notice to be given to the Company may be
served by being marked for the attention of the Company Secretary and by being
left at or by being sent by recorded delivery first class post or by fax to its
registered office for the time being. Any notice served by post shall be deemed
to have been served on the second day (excluding Sundays and statutory holidays)
next following the date of posting and in proving such service it shall be
sufficient proof that the envelope containing the notice was, in your case,
addressed to you at your usual or last known address and, in the case of the
Company, addressed to it marked for the attention of the Company Secretary at
its registered office for the time being, and in either case posted as a prepaid
letter by recorded delivery. Any notice served by fax shall be deemed to have
been served twelve hours after the time of despatch.


Other
Agreements


18. You acknowledge and
warrant that there are no Agreements or arrangements whether written, oral or
implied between the Company or any other Group Company and you relating to your
employment or the Employment other than those which are expressly set out in
this Agreement and that you are not entering into this Agreement in reliance on
any representation not expressly set out in this Agreement.


Governing law


19. This Agreement will be
governed by and construed under English law without regard to its conflicts of
laws provisions, and each of the parties hereby irrevocably agrees for the
exclusive benefit of the Company that the Courts of England are to have
jurisdiction to settle any disputes which may arise out of or in connection with
this Agreement.


Withholding Tax


20. All amounts payable to
you under this Agreement shall be subject to applicable withholding of income,
salary and such other withholdings that the Company determines are required to
be withheld in accordance with applicable laws.


AS WITNESSwhereof
this Agreement has been signed by or on behalf of the parties to it on the day
and year first above written.



Page 13
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SCHEDULE 1OTHER
BENEFITS


Bonus


1.You will be entitled to
participate in an annual bonus plan to be administered by the Remuneration
Committee. Unless otherwise agreed by the Remuneration Committee, the maximum
annual bonus payable under this plan will be an amount up to 100% of your base
salary. The criteria relating to your performance and that of the Company which
are to be used to determine the amount of the bonus in any year will be laid
down by the Remuneration Committee at the commencement of each year and the
bonus for that year will be paid as soon as reasonably practicable after the
relevant results have been determined. The Remuneration Committee reserves the
right to amend the quantitative criteria annually and/or to discontinue the
bonus arrangement. On termination of the Employment, other than termination
pursuant to Clause 12.1 or termination in respect of which Clause 12.6 applies,
you shall be entitled to a pro-rated amount of bonus, being such proportion of
average bonus (calculated according to Clause 12.6(iii)) as is the same as the
proportion of the last financial year during which the Employment has subsisted.


Share Option
Plans


2.1 You will be eligible
for membership of the Companys Save As You Earn Share Option Scheme and of
any other all employee share option plan operated by the Company and approved by
the Companys shareholders. Participation in such scheme and plans is, save
as otherwise stipulated in their rules, at the sole discretion of the Board or
the Remuneration Committee.


2.2 If you are relocated to
a country outside the United Kingdom, you are entitled to participate in any
equivalent scheme or plan operated by a Group Company in that country.


Holidays


3.1 The Companys
holiday year runs from 1 January to 31 December. In addition to the bank and
other public holidays, you will be entitled to 30 working days paid
holiday in each holiday year.


3.2 Your annual holiday may
be taken at such time or times as are reasonably appropriate having regard to
the business needs of the Company.


3.3 Holidays not taken in
the year of entitlement will be lost unless carried forward with the agreement
of the Chief Executive of the Company.


3.4 On termination of the
Employment, you will be entitled to pay in lieu of any unpaid holiday or be
required to pay the Company any salary received for holiday taken in excess of
your contractual entitlement. You may be required to take any untaken holiday
during your notice period.


Page 14
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Pension and
life assurance schemes


4. You will continue to be
a member of, and the Company shall pay or procure to be paid to you your
benefits under Reuters Pension Fund and Reuters Supplementary Pension Scheme,
subject to the Trust Deed and Rules governing those schemes and to any Inland
Revenue or other applicable limits. A contracting-out certificate is in force in
respect of the Employment. The applicable benefits are set out in Schedule 4 to
this Agreement.


Long term
incentive plan


5. You are entitled to be a
member of the Reuters Group PLC Long Term Incentive Plan or any plan operated by
the Company in succession to that plan (as notified to you from time to time)
for so long as the Plan or such plan may be operated by the Company, and the
Company shall pay to you benefits under the Plan or such plan, subject to the
conditions of the Companys policy on retention of LTIP awards on early
retirement (as notified to you from time to time).


Incapacity
benefit/long term disability benefit


6. You shall be entitled to
membership of, and the Company shall pay to you benefits under, the
Companys disability scheme, subject to the terms of that scheme and of any
related policy of insurance as in force from time to time.


Medical
benefit/private healthcare scheme


7.1 You (your spouse and
any unmarried children under 21 (or under 24 if in fulltime education)) are
entitled to membership of the Companys private healthcare scheme subject
to the rules of the scheme and of any related policy of insurance.


7.2 If you wish, as an
alternative to membership of the Companys scheme, the Company will bear
the costs of you being a member of another private healthcare scheme, up to the
value of the benefits available to you under the Companys scheme.


7.3 You are entitled to
receive an annual health check at a cost to the Company of no more than
£500 (or as increased and notified to you from time to time).


Company car


8. The Company will provide
you with a car (or cash in lieu if you so elect) in accordance with the terms of
the Companys policy on executive directors cars (as notified to you
from time to time) for business and personal use and will bear the expenses of
taxing, insuring, repairing and maintaining the car. You agree to comply in full
with the Companys policy on executive directors cars, failing which
the Company may require you to return the car immediately.



Page 15
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|Chauffeur-driven
car


9. You shall be entitled to
the non-exclusive use of a chauffeur-driven car provided by the Company (subject
to availability) at no cost to you for purposes reasonably connected with the
Companys business or as otherwise approved by the Chief Executive of the
Company.


Directors
indemnity and insurance


10. You shall have the benefits of:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | the
indemnity contained in regulation 155 of the Companys Articles of Association;
|--- |  | -----------------------------------------------------------------------------------

|(b) |  | any similar indemnity in respect of liabilities incurred by Group Company
directors in their capacity as such contained in the constitutional documents of
any other Group Company for so long as you are a director or officer of such
other Group Company; and
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | (subject to their terms) any insurance policies which shall be maintained by the
Company in respect of liabilities incurred by Group Company directors in their
capacity as such.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Other benefits


11. You shall have such
other benefits as may be made available to you by the Company from time to time,
including but not limited to the use of Reuters products, mobile telephone and
other equipment and membership of professional bodies.



Page 16
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SCHEDULE 2ADDITIONAL
STATUTORY PROVISIONSEMPLOYMENT RIGHTS ACT 1996


Additional particulars
required to be disclosed:


Continuous
employment


1. Your period of continuous
employment with the Company began on 1st September 1973.


Injury and sickness
pay


2. If you are absent from work
because of sickness or injury, you must:
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | notify
the Company as soon as possible on the first morning of absence and inform the Company of
your expected date of return;
|--- |  | ------------------------------------------------------------------------------------------------------------------------------

|(b) |  | complete
and return to the Company a self-certification form in respect of the first five working
days of any sickness absence;
|--- |  | -------------------------------------------------------------------------------------------------------------------------------

|(c) |  | provide the Company with a medical certificate from your GP or other registered
practitioner for periods of absence of seven days (including weekends) in excess
and with medical certificates for each subsequent week of sickness absence;
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | if
requested by the Company, undergo a medical examination at the expense of the Company
with a medical practitioner nominated by the Company; and
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | if requested by the Company give written permission to the Company to have
access to any medical or health report in its complete form prepared by any
health professional on your physical or mental condition.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Subject to the above, you
will be entitled at the discretion of the Company to up to 365 days sick
pay (including statutory sick pay) in any 24 month rolling period. Sick pay will
be calculated at your normal rate of pay and benefits.


Disciplinary
rules and grievance procedure


3. If at any time you have
a grievance relating to the Employment, you may seek redress orally or in
writing by, in the first instance, referring the grievance to the Chairman of
the Board. If the grievance remains unresolved, you may appeal to the Board and
the Board shall deal with the matter by discussion and by majority decision of
those present at the relevant meeting of the Board. The Boards decision
shall be final and binding.


Collective
Agreements


4. There are no collective
agreements with trade unions which directly affect your terms and conditions.



Page 17
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SCHEDULE 3


COMPETING
BUSINESS CONCERNS


AS AT THE DATE
OF THIS AGREEMENT


Part 1


Competing
Business Concerns
|------------------------------------------------------------------------------------------------------------------

| | Bloomberg
L.P.
| | --------------

| | Pearson
PLC
| | -----------

| | Quick
Corporation of Japan
| | --------------------------

| | AOL
Time Warner
| | ---------------

| | Telekurs
A.G.
| | -------------

| | SunGard
| | -------

| | The
Electronic Broking Service
| | ------------------------------

|Part 2


Companies with
Divisions which compete with Reuters
|------------------------------------------------------------

| | The
Thomson Corporation
| | -----------------------

| | The
McGraw Hill Companies
| | -------------------------

| | The
Dun & Bradstreet Corporation
| | --------------------------------

| | Reed
Elsevier P.L.C./Elsevier N.V.
| | ----------------------------------

|Part 3


Companies
with which Reuters has strategic relationships
|-----------------------------------------------------------------

| | Multex.com,
Inc.
| | ----------------

| | Yahoo!Inc.
| | ----------

|Page 18
|-------

|SCHEDULE 4


PENSION AND
LIFE ASSURANCE SCHEMES


Pension: You are entitled at your
normal retirement age of 60 to a pension of two thirds of your pensionable salary. If you
retire before age 60 you will receive an immediate pension of two thirds of your
pensionable salary without reduction.


The total pension payable from your
pension arrangements will be subject to Inland Revenue limits.


Pension increases: On retirement you
are guaranteed to receive increases in your pension of no less than the increase in the
Retail Prices Index, up to a maximum of 5%.


Death in service: A lump sum payable
of 4 times basic salary payable plus 4 x the average of taxable emoluments for the three
years immediately before death.


A spouses pension of
two-thirds of your prospective pension is payable (subject to reduction on the advice of
the Actuary if the spouse is 16 years or more younger).


Death after retirement: A spouses
pension of two-thirds of your pension is payable (subject to reduction on the advice of
the Actuary if the spouse is 16 years or more younger).


Childrens Allowances: On death
in service or death after retirement, the allowances payable in respect of any Qualifying
Children will be one quarter of the pension payable to the surviving spouse per child up
to a maximum of two children. If there is no surviving spouse one half of the pension
that would have been paid to the surviving spouse would be paid as an allowance to each
child up to a maximum of two children.


(A Qualifying Child is your child
being under the age of 18 or if in full-time education under the age of 21. It also
includes an adopted child or a child in relation to which you stand in loco parentis,
subject to the approval of the Managing Committee of Reuters Pension Fund.)


Page 19
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|SIGNED by


Sir
Christopher Hogg


)


for and on behalf of
)



REUTERS GROUP PLC


)


in the presence of-


Stephen
Clements


)
SIGNED as a DEED


)



and DELIVERED by


)



GEOFFREY WEETMAN


)



in the presence of :-


Rosemary Martin
)



Page 20
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------