Document:

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                                                              EXHIBIT 4.(c)(iii)

                             CONTRACT OF EMPLOYMENT

                              CHRISTOPHER SEMPRINI

                                 23RD JULY 2001

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                             CONTRACT OF EMPLOYMENT

                                    INCLUDING

                     STATEMENT OF PARTICULARS OF EMPLOYMENT
                   PURSUANT TO THE EMPLOYMENT RIGHTS ACT 1996

THE PARTIES

NAME AND ADDRESS OF EMPLOYER                         MADGE NETWORKS LIMITED
(the Company), whose registered address is           Wexham Springs
                                                     Framewood Road
                                                     Wexham
                                                     Berkshire SL3 6PJ
                                                     England

NAME AND ADDRESS OF EMPLOYEE                         MR CHRISTOPHER SEMPRINI
(referred to in this contract as "you")              XXX

1.   POSITION
       Your role shall initially be Vice President of Finance, with the
       intention that prior to the end of 2001 you shall be promoted to the
       position of Chief Financial Officer, within the Finance department of
       Madge Networks. You shall initially report to the present Chief Financial
       Officer. Upon your appointment to the position of Chief Financial Officer
       you shall report to the Chief Executive Officer of Madge Networks. This
       contract should be read to cover both roles.

       In these roles you will contribute at an executive level to the
       activities of the Madge Networks group of companies. Upon your assuming
       the role of Chief Financial Officer you will be responsible for the
       overall financial management of Madge Networks on a global basis, and
       also, in conjunction with the Senior Management team, you shall
       contribute to the development and execution of a strategy that will
       deliver future growth in value for shareholders.

       In addition to your normal duties, the Company reserves the right within
       reason to require you to carry out other duties from time to time, or to
       perform duties for a Company in the Madge Group*.

* Throughout this Contract of Employment Madge Group means Madge Networks N.V.
and all its subsidiary and associated companies.

2.   COMMENCEMENT DATE
       The Commencement Date under this Contract of Employment is 1st August
       2001. This date is the effective date of this contract.

3.   SALARY AND PERFORMANCE
       Your salary of (pound)100,000 per annum will be paid by 12 monthly
       instalments in arrears. Salaries are paid on or before the 28th day of
       each month by credit transfer into your bank or building society account
       and are subject to deductions for taxation, National Insurance or other
       matters as required by law or authorised by you. Your contribution to the
       Company's Pension Plan, if you decide to join, will also be deducted.

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       Salary reviews are discretionary and performance related and are
       dependent on an individual's performance in their role. Your salary will
       usually be reviewed on an annual basis. There will be a review of your
       salary and terms of employment at the end of October 2001. As you are
       aware this may result in changes to your existing terms including a
       possible reduction in your cash compensation.

       Following the review of your total compensation at the end of October
       2001 you may reasonably expect that a variable performance-based element
       shall be introduced as part of your overall compensation package. This
       element would be subject to periodic review thereafter in accordance with
       the Company's Performance Bonus Policy and / or business requirements.

       In accordance with the Employment Rights Act 1996 and, as agreed by you,
       the Company may make deductions from pay in respect of loans, advances,
       overpayments or outstanding Company credit card balances due to the
       Company and/or deductions made in respect of benefits under this
       agreement.

4.   COMPANY CAR / CAR ALLOWANCE
       You will be provided with a Company vehicle, appropriate to your status,
       for business and private use. The vehicle is provided subject to the
       rules of the Company's Car Policy which can change at the discretion of
       the Company, which do not form part of your Contract of Employment.

       Under the current Policy the Company will reimburse you for all
       reasonable servicing and maintenance costs, insurance premiums and the
       cost of petrol that you purchase for business and private use in the UK.
       You are required to maintain the car in good working condition at all
       times. Prior to allocation, where a car is available in the Company's
       pool, the Company reserves the right to issue this in the first instance.
       The individual will retain the vehicle until the end of its lease.

       Please refer to a copy of the Company's Car Policy for further
       information.

       At all times, while using the Company vehicle you are expected to comply
       with road laws and Company Health and Safety rules. This is an assessable
       benefit according to Inland Revenue regulations.

       As an alternative to the Company provided car, you may opt to take a cash
       alternative of (pound)10,800 per annum. The car allowance is provided
       subject to the rules of the Company's Car Policy which can change at the
       discretion of the Company.

       The car allowance is payable by 12 monthly instalments in arrears, on or
       before the 28th day of each month by credit transfer into your bank or
       building society account. This allowance will be subject to deductions
       for taxation, National Insurance or other matters as required by law, but
       is not pensionable. It is an assessable benefit according to Inland
       Revenue regulations.

5.   EMPLOYEE BONUS SCHEME
       You shall be eligible to participate in certain performance bonus schemes
       that operate from time to time. A performance bonus scheme is not
       currently in force, therefore should a new scheme be implemented you
       would be notified of the scheme and associated performance objectives and
       criteria under separate cover.

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       Schemes may be altered at the discretion of the Company and you will be
       subject to the prevailing rules in force. Any bonus payments are subject
       to deductions for taxation, National Insurance or other matters as
       required by law or authorised by you. You acknowledge that you have no
       right to receive a bonus and will not acquire such a right merely by
       virtue of having received one or more bonus payments during the course of
       your employment.

6.   PERFORMANCE APPRAISAL
       The Company operates a continuous performance appraisal system. You will
       be required to participate in the appraisal process which will include
       formulating agreed objectives for the performance of your duties.

7.   HOURS OF WORK
       The Company's normal working week is 40 hours per week, but in this
       position, you are required to work whatever hours are necessary to fulfil
       the requirements of your position.

8.   PLACE OF WORK
       Your normal place of work is at the Company central offices in Wexham
       Springs, Framewood Road, Wexham, Slough SL3 6PJ, England but you may be
       required to work elsewhere at such locations within the United Kingdom
       and in such places (whether in or outside the United Kingdom) and in such
       manner and on such occasions as the Company may reasonably determine from
       time to time, according to business needs.

9.   HOLIDAYS
       The Company's holiday year is the calendar year (1st January to 31st
       December).

       You are entitled to 23 days' holiday with pay in every calendar year
       (exclusive of bank and public holidays). Your holiday entitlement for
       2001 is 10 days. Holidays may only be taken at times agreed in advance in
       writing with your manager.

       At the end of your employment, your holiday entitlement for the last year
       you work will be accrued on a pro rata basis for each complete week of
       service in that holiday year. Deductions will be made from your salary
       for any holidays taken in excess of your entitlement.
       When you leave the Company, the Company may at its discretion:-

       Require you to take during your notice period any holiday entitlement
       which will have accrued by the date of the termination of your employment
       but which has not been taken; or

       Pay you in lieu of holiday accrued but not taken by the date of
       termination of your employment. (No payment in lieu will be made where
       your employment is terminated by the Company for gross misconduct).

       Any days you may have pre-booked for holiday for 2001 will be honoured
       but will not be fully paid if the leave exceeds your pro-rata entitlement
       for your first year of employment with the Company. A maximum of 5 days
       holiday remaining at the end of any holiday year may be carried forward
       into the next year.

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       Three (3) days of your annual holiday entitlement is required to be taken
       at Christmas, unless you are directly involved in year-end activity or
       required to carry out work to meet the business needs.

10.  SICKNESS
       The Company will pay for absences due to sickness or injury at your basic
       salary (less any state benefits whether claimed or not) for a maximum
       aggregate period of absence of 26 weeks in any 12 calendar month period,
       such payments would be made at the Company's sole discretion and subject
       to satisfactory medical evidence. Any absences for further periods will
       be remunerated at the sole discretion of the Company. You should exercise
       reasonable diligence to inform the Company if away due to ill health, and
       a doctor's certificate must be provided for absences in excess of seven
       (7) days.

       If the sickness, injury or accident is caused by the act or omission of a
       third party you must, at the Company's request, include in any claim for
       damages against such third party a claim in respect of monies paid by the
       Company under this clause 7 and must refund to the Company any damages
       recovered.

11.  STOCK PLAN (SHARES)
       New Hire
       You will be eligible to participate in the Madge N.V. Stock 1993 Plan,
       and subject to the rules of the scheme, a copy of which is available upon
       request. It will be recommended to the Supervisory Board that you be
       granted an option to purchase a significant number of shares which will
       vest (become exercisable) rateably over four years, subject to one year
       cliff vesting of the first 25% of the grant. The proposed options will be
       granted, if approved by the Supervisory Board, on 1st November 2001. The
       exercise price of the option will be the fair market value of Madge
       Networks N.V. Common Shares as determined under the Plan on 1st November
       2001.

       Further details of the proposed grant shall be provided to you under
       separate cover.

       Stock Purchase Plan
       You will be eligible to participate in the Company's 1993 Employee Stock
       Purchase Plan. The purpose of the Plan is to enable you to purchase
       Common Stock of the Company through payroll deductions.

       The Company reserves the right to amend or terminate the above mentioned
       plans at any time, with or without replacement. Participation in each
       case is subject to the rules of the above-mentioned plans, copies of
       which are available upon request.

       Each of the plans and schemes above may be subject to deductions for
       taxation, National Insurance or other matters as required by law,
       including benefit in kind.

12.  INSURANCES
       You will be eligible to become a member of the following schemes:-

       1. Life Assurance scheme - under which a lump sum benefit will be payable
       should you die during your employment; the benefit is equal to four times
       your basic annual salary at your death, but basic annual salary for this
       purpose shall not exceed the maximum allowed by the Inland Revenue.

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       Supplementary `unapproved' life cover is also available to certain
       employees who's earnings are in excess of the Inland Revenue limits in
       the form of an individual policy that is facilitated by the Company. You
       may elect to apply for this additional life cover. Cover is subject to
       the terms and conditions defined by the insurer and as such you may be
       required to attend for a medical as part of the underwriting process.

       2. Long-term disability insurance scheme - you will be included in the
       Company's Income Protection Insurance Scheme which, subject to the claim
       being accepted by the insurer, will provide you with an income should you
       be absent from work for more than 26 continuous weeks due to illness or
       disablement.

       3. Medical insurance scheme - the Company will provide health cover for
       you and your family under the current scheme which is with Western
       Provident Association (WPA). This is subject to your compliance with and
       satisfaction of the applicable requirements of such a scheme.

       4.  Business travel and personal accident insurance scheme.

       Benefits under any insurance scheme mentioned above will be subject to
       the rules of the scheme and the terms of any applicable insurance policy.
       These are conditional on your complying with and satisfying any
       requirements of the insurers. Whilst the Company shall use reasonable
       endeavours to ensure that it receives payment of the benefit from the
       insurance provider, the Company shall not be liable to pay any benefit to
       you under any insurance scheme unless it receives payment of the benefit
       from the insurance provider of the scheme. Copies of the schemes can be
       requested from the Human Resources department.

       Each of the plans and schemes above may be subject to deductions for
       taxation, National Insurance or other matters as required by law,
       including benefit in-kind.

       The Company has the right to alter, without notice, the cover provided or
       any term of the scheme or plan mentioned above, or to cease to provide
       the scheme (without replacement) at any time including when and if your
       state of health is or becomes such that the Company is unable to insure
       the benefits under the scheme at the normal premiums applicable to a
       person of your age.

13.  PENSION
       The Company operates a pension scheme and will contribute an amount equal
       to 10% of your basic salary, subject to any applicable Inland Revenue
       limits, to either this scheme or an approved pension scheme of your
       choice.

14.  NOTICE
       The Company will provide you with 6 months' notice in writing of the
       termination of your employment and you are required to give the Company 6
       months notice in writing to terminate your employment.

       If either party gives notice to terminate your employment, the Company
       may, at its discretion, elect to make a payment of your basic salary in
       lieu of any period of notice. You shall not be entitled to any
       Bonus/Commission payment following notice of termination of your
       employment.

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       The above is subject to the Company's right to terminate your employment
       at any time without notice for gross misconduct.

       On termination of your employment you must immediately return to the
       Company all items of property belonging to the Company in your possession
       or under your control.

15.  SUSPENSION FROM DUTIES
       The Company has the right at any time including, without limitation,
       during a period of notice (whether the notice was given by you or the
       Company) to suspend you from the performance of your duties and powers.
       This will be for such period as it considers appropriate, and may include
       a requirement that you will not attend the Company's premises and will
       not work for any other person.

       In addition, the Company may during the whole or part of a period of
       suspension require you to carry out modified duties, including duties
       which do not involve any contact with the Company's clients.

       During any period of suspension you shall be entitled to receive your
       full salary and any other benefits to which you are entitled.

16.  DISCIPLINARY AND GRIEVANCE PROCEDURE
       The disciplinary rules applicable to your employment and the Company's
       grievance procedure are available from the Human Resources department.

       These rules do not form part of your Contract of Employment and may be
       amended by the Company from time to time at its absolute discretion.

       If you are dissatisfied with any disciplinary decision or wish to raise
       any grievance in relation to your employment you should apply in writing
       to your head of department who will endeavour to propose a solution
       within 14 days of receipt.

17.  CONFIDENTIAL INFORMATION
       The Company observes strict rules regarding the confidentiality of
       information, and breaching these rules would commercially damage the
       Company. For this reason, except in the proper performance of your
       duties, you will not either during your employment or at any time
       afterwards use or communicate to any person, and during your employment
       you will use your best endeavours to prevent the disclosure of, any
       information of a confidential nature concerning:

       (a) the business of the Company or any Company in the Madge Group which
       comes to your knowledge during the course of or in connection with your
       employment or your holding any office within the Madge Group from any
       source within the Company or any company in the Madge Group; or

       (b) concerning the business of any person having dealings with the
       Company or any Company in the Madge Group and which is obtained directly
       or indirectly in circumstances in which the Company or any Company in the
       Madge Group is subject to a duty of confidentiality in relation to that
       information.

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       This may include information concerning employees, policy, organisation,
       trade secrets, dealings, transactions and affairs of the Company,
       research and development of new products, scientific or technical test
       results, processes, Company future plans, staffing, information
       concerning Company customers and suppliers (whether past, present or
       potential), the terms upon which the Company or any associated Company
       undertakes or any other information of the Company which is not in the
       public domain.

       The duty of confidentiality clause continues to apply after the
       termination of your employment.

       You will promptly, whenever requested by the Company and in any event
       upon the termination of your employment with the Company, deliver up to
       the Company all correspondence and all other documents, papers and
       records, hardware and software, which may have been prepared by you or
       have come into your possession in the course of your employment with the
       Company (except for any such documents which may be considered by the
       Company to be in the public domain), and all electronic equipment,
       computer software or hardware and other property used in connection with
       the operations of the Company or any subsidiary Company, and you may not
       retain any copies. Title to and copyright in such correspondence and
       other documents, papers, records and property shall vest in the Company.

18.  INTELLECTUAL PROPERTY
       You will promptly disclose to the Company any invention, development,
       discovery, improvement, new software or source code or design made by you
       whether alone or with others during the performance of your duties as an
       employee whether or not the same is capable of protection as intellectual
       property by patent, copyright, design right, as a trademark or by other
       means and you shall not use, disclose to any person or exploit the same
       without the express prior written consent of the Company.

       Subject to the provisions of the Patents Act 1977, your entire interest
       in any Intellectual Property Right (defined below) shall, as between you
       and the Company, become the property of the Company as absolute
       beneficial owner without any payment to you for it.

       (1) You shall, at the request and expense of the Company, execute such
       documents and do such other acts and things as may be necessary to enable
       the Company to obtain protection of any Intellectual Property Right and
       to enable the Company to exploit any Intellectual Property Right.

       (2) You hereby waive all of your moral rights (as defined in the
       Copyright Designs and Patents Act 1988) in respect of any act of the
       Company or one with the Company's authority in relation to any
       Intellectual Property Right.

       (3) In this clause "Intellectual Property Right" means any formula,
       process, invention, improvement model, trademark, service mark, business
       name, design right, patent, know-how, trade secret, copyright and all
       other intellectual property rights of any nature whatsoever (whether
       registered or unregistered and including applications and rights to apply
       for any of the same) invented, developed, created or acquired by you in
       the course of your employment with the Company or any Group Company
       including without limitation all rights in any software, hardware,
       written material or other item created, designed, developed or written by
       you in the course of your employment with the Company or any group
       Company.
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19.  NON COMPETITION
       You covenant with the Company and the Group that you will not (directly
       or indirectly) on your own account or on behalf of or in conjunction with
       any person for a period of 6 months ("Restricted Period") after the
       Termination Date:

       (1) be concerned with any business which is carried on in the United
       Kingdom (or any other country in which you were employed or for which you
       had responsibility during the 6 months ending on the Termination Date)
       which is competitive or likely to be competitive with any business
       carried on at the Termination Date by the Company or any Group Company
       and with which you were actively involved during your employment during
       the 6 months ending on the Termination Date.

       (2) deal with or canvass or solicit business from, for goods of similar
       type to those being manufactured or dealt in by the Company or any Group
       Company at the Termination Date, and with which you were actively
       involved in the course of your employment during the 6 months ending on
       the Termination Date to any person who has been at any time during the 6
       months ending on the Termination Date a customer of the Company or any
       Group Company and with whom you were actively involved in the course of
       your employment during the 6 months period;

       (3) induce or attempt to induce any Company employee who directly
       reported to you or any development engineer, sales or marketing person of
       the Company who is engaged in any business or activity carried on by the
       Company at the Termination Date, and with whom you had material dealings
       in the course of your employment during the six months ending on the
       Termination Date, to leave the employment of the Company (whether or not
       this would be a breach of contract by the employee).

       You acknowledge that the provisions of this clause are no more extensive
       than is reasonable to protect the Company and the Group.

       In this clause:

       (a) "Termination Date" means the date on which your employment is
       terminated

       (b)  "person" includes any company, firm, organisation or other entity

       (c) "Restricted Period" means the period of 6 months following the
       Termination Date. If the Company requires you not to perform any of your
       duties and/or excludes you from the Company's premises ("garden leave")
       as set out in the Suspension from Duties clause above, for some or all of
       any period of notice, the Restricted Period shall be reduced by the
       length of the garden leave served prior to the Termination Date.

       Each of the restrictions in each paragraph or sub-clause above shall be
       enforceable independently of each of the others and its validity shall
       not be affected if any of the others is invalid. If any of those
       restrictions is void but would be valid if some part of the restriction
       were deleted the restriction in question shall apply with such
       modification as may be necessary to make it valid.

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20.  COLLECTIVE AGREEMENT
       There are no collective agreements which affect the terms and conditions
       of your employment.

21.  GENERAL
       The Company operates a Policy of No Smoking on the Company premises.

22.  TRAVEL AND WORKING OVERSEAS
       You may be required to travel in the UK or overseas from time to time.
       Reasonable expenses will be reimbursed for such travel in accordance with
       the Company Expenses policy.

23.  WARRANTY
       In entering into this agreement, you undertake that you are not in breach
       of any other employment agreement (for example, contract with a former
       employer) or of any other obligations binding on you which may affect
       your ability to perform services under this agreement (for example,
       requirement for a work permit).

       This agreement shall operate in substitution for any terms of service
       previously in force (whether written or oral) between you and the Company
       or between you and any former employer and you acknowledge and warrant
       that there are no agreements or arrangements whether written, oral or
       implied between you and the Company relating to your employment, other
       than those 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 herein.

       Your signature below will confirm your agreement to the terms set out
       above.

         /s/ Rachael Roberts                        /s/ Christopher Semprini
         ---------------------------                ---------------------------
         RACHAEL ROBERTS                            CHRISTOPHER SEMPRINI
         WORLD-WIDE REWARDS & BENEFITS MANAGER
         FOR AND ON BEHALF OF
         MADGE NETWORKS LIMITED

         DATE:    23rd July 2001                    DATE: 23rd July 2001

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                                                               EXHIBIT 4.(c)(iv)

                            INDEMNIFICATION AGREEMENT

         THIS AGREEMENT is entered into, effective as of June 14, 1993 between
Madge Networks N.V., a corporation organized under the laws of The Netherlands
(the "Company"), and Robert Madge ("Indemnitee").

         WHEREAS, it is essential to the Company and its subsidiaries to retain
and attract as directors and officers the most capable persons available;

         WHEREAS, Indemnitee is a director and/or officer of the Company or a
subsidiary of the Company;

         WHEREAS, both the Company and Indemnitee recognize the increased risk
of litigation and other claims currently being asserted against directors and
officers of corporations; and

         WHEREAS, in recognition of Indemnitee's need for substantial protection
against personal liability in order to enhance Indemnitee's continued and
effective service to the Company and its subsidiaries, and in order to induce
Indemnitee to provide services to the Company or one of its subsidiaries as a
director or an officer, the Company wishes to provide in this Agreement for the
indemnification of and the advancing of expenses to Indemnitee to the fullest
extent (whether partial or complete) permitted by law and as set forth in this
Agreement, and, to the extent insurance is maintained, for the coverage of
Indemnitee under the Company's directors' and officers' liability insurance
policies.

         NOW, THEREFORE, in consideration of the above premises and of
Indemnitee's continuing to serve the Company directly or, at its request, with
another enterprise, and intending to be legally bound hereby, the parties agree
as follows:

         1.       Certain Definitions:

         a.       Board: the Board of the Company.

                  b. Change in Control: shall be deemed to have occurred if (i)
any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities
Act of 1934, as amended), other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or a corporation owned
directly or indirectly by the shareholders of the Company in substantially the
same proportions as their ownership of stock of the Company, is or becomes the
"Beneficial Owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing 20% or more of the total
voting power represented by the Company's then outstanding Voting Securities, or
(ii) during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board and any new director whose

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election by the Board or nomination for election by the Company's shareholders
was approved by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved, cease for any
reason to constitute a majority thereof, or (iii) the shareholders of the
Company approve a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation that would result in the
Voting Securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into Voting Securities of the surviving entity) at least 80% of the total voting
power represented by the Voting Securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation, or the
shareholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company (in one
transaction or a series of transactions) of all or substantially all of the
Company's assets.

                  c. Expenses: any expense, liability, or loss, including
attorneys' fees, judgments, fines, ERISA excise taxes and penalties, amounts
paid or to be paid in settlement, any interest, assessments, or other charges
imposed thereon, and any federal, state, local, or foreign taxes imposed as a
result of the actual or deemed receipt of any payments under this Agreement,
paid or incurred in connection with investigating, defending, being a witness
in, or participating in (including on appeal), or preparing for any of the
foregoing in, any Proceeding relating to any Indemnifiable Event.

                  d. Indemnifiable Event: any event or occurrence that takes
place either prior to or after the execution of this Agreement, related to the
fact that Indemnitee is or was a director or an officer of the Company or a
subsidiary of the Company, or while a director or officer is or was serving at
the request of the Company as a director, officer, employee, trustee, agent, or
fiduciary of another foreign or domestic corporation, partnership, joint
venture, employee benefit plan, trust, or other enterprise, or was a director,
officer, employee, or agent of a foreign or domestic corporation that was a
predecessor corporation of the Company or of another enterprise at the request
of such predecessor corporation, or related to anything done or not done by
Indemnitee in any such capacity, whether or not the basis of the Proceeding is
alleged action in an official capacity as a director, officer, employee, or
agent or in any other capacity while serving as a director, officer, employee,
or agent of the Company, as described above.

                  e. Independent Counsel: the person or body appointed in
connection with Section 3.

                  f. Potential Change in Control: shall be deemed to have
occurred if (i) the Company enters into an agreement or arrangement, the
consummation of which would result in the occurrence of a Change in Control;
(ii) any person (including the Company) publicly announces an intention to take
or to consider taking actions that, if consummated, would constitute a Change in
Control; (iii) any person (other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company acting in such capacity
or a corporation owned, directly or indirectly, by the shareholders of the
Company in substantially the same proportions as their ownership of stock of the
Company), who is or becomes the Beneficial

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Owner, directly or indirectly, of securities of the Company representing 10% or
more of the combined voting power of the Company's then outstanding Voting
Securities, increases his beneficial ownership of such securities by 5% or more
over the percentage so owned by such person on the date hereof, or (iv) the
Board adopts a resolution to the effect that, for purposes of this Agreement, a
Potential Change in Control has occurred.

                  g. Proceeding: any threatened, pending, or completed action,
suit, or proceeding, or any inquiry, hearing, or investigation, whether
conducted by the Company or any other party, that Indemnitee in good faith
believes might lead to the institution of any such action, suit, or proceeding,
whether civil, criminal, administrative, investigative, or other.

                  h. Reviewing Party: the person or body appointed in accordance
with Section 3.

                  i. Voting Securities: any securities of the Company that vote
generally in the election of directors.

         2.       Agreement to Indemnify.

                  a. General Agreement. In the event Indemnitee was, is, or
becomes a party to or witness or other participant in, or is threatened to be
made a party to or witness or other participant in, a Proceeding by reason of
(or arising in part out of) an Indemnifiable Event, the Company shall indemnify
Indemnitee from and against any and all Expenses to the fullest extent permitted
by law, as the same exists or may hereafter be amended or interpreted (but in
the case of any such amendment or interpretation, only to the extent that such
amendment or interpretation permits the Company to provide broader
indemnification rights than were permitted prior thereto). The parties hereto
intend that this Agreement shall provide for indemnification in excess of that
expressly permitted by statute, including, without limitation, any
indemnification provided by the Company's Articles of Association, vote of its
shareholders or disinterested directors, or applicable law.

                  b. Initiation of Proceeding. Notwithstanding anything in this
Agreement to the contrary, Indemnitee shall not be entitled to indemnification
pursuant to this Agreement in connection with any Proceeding initiated by
Indemnitee against the Company or any director or officer of the Company or a
subsidiary of the Company unless (i) the Company has joined in or the Board has
consented to the initiation of such Proceeding; (ii) the Proceeding is one to
enforce indemnification rights under Section 5; or (iii) the Proceeding is
instituted after a Change in Control and Independent Counsel has approved its
initiation.

                  c. Expense Advances. If so requested by Indemnitee, the
Company shall advance (within ten business days of such request) any and all
Expenses to Indemnitee (an "Expense Advance"); provided that, if and to the
extent that the Reviewing Party determines that Indemnitee would not be
permitted to be so indemnified under applicable law, the Company shall be
entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the
Company) for all such amounts theretofore paid. If Indemnitee has commenced
legal proceedings in a court of

                                       3

<PAGE>

competent jurisdiction to secure a determination that Indemnitee should be
indemnified under applicable law, as provided in Section 4, any determination
made by the Reviewing Party that Indemnitee would not be permitted to be
indemnified under applicable law shall not be binding and Indemnitee shall not
be required to reimburse the Company for any Expense Advance until a final
judicial determination is made with respect thereto (as to which all rights of
appeal therefrom have been exhausted or have lapsed). Indemnitee's obligation to
reimburse the Company for Expense Advances shall be unsecured and no interest
shall be charged thereon.

                  d. Mandatory Indemnification. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee has been successful
on the merits in defense of any Proceeding relating in whole or in part to an
Indemnifiable Event or in defense of any issue or matter therein, Indemnitee
shall be indemnified against all Expenses incurred in connection therewith.

                  e. Partial Indemnification. If Indemnitee is entitled under
any provision of this Agreement to indemnification by the Company for some or a
portion of Expenses, but not, however, for the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion thereof to which
Indemnitee is entitled.

                  f. Prohibited Indemnification. No indemnification pursuant to
this Agreement shall be paid by the Company in the event Indemnitee is found in
the applicable Proceeding to have committed gross negligence or an intentionally
wrongful act.

         3.       Reviewing Party. Prior to any Change in Control, the Reviewing
Party shall be any appropriate person or body consisting of a member or members
of the Board or any other person or body appointed by the Board who is not a
party to the particular Proceeding with respect to which Indemnitee is seeking
indemnification; after a Change in Control, the Reviewing Party shall be the
Independent Counsel referred to below. With respect to all matters arising after
a Change in Control (other than a Change in Control approved by a majority of
the directors on the Board who were directors immediately prior to such Change
in Control) concerning the rights of Indemnitee to indemnity payments and
Expense Advances under this Agreement or any other agreement or under applicable
law or the Company's Articles of Association now or hereafter in effect relating
to indemnification for Indemnifiable Events, the Company shall seek legal advice
only from Independent Counsel selected by Indemnitee and approved by the Company
(which approval shall not be unreasonably withheld), and who has not otherwise
performed services for the Company or the Indemnitee (other than in connection
with indemnification matters) within the last five years. The Independent
Counsel shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine
Indemnitee's rights under this Agreement. Such counsel, among other things,
shall render its written opinion to the Company and Indemnitee as to whether and
to what extent the Indemnitee should be permitted to be indemnified under
applicable law. The Company agrees to pay the reasonable fees of the Independent
Counsel and to indemnify fully such counsel against any and all expenses
(including attorneys' fees), claims, liabilities, loss, and damages arising out
of or relating to this Agreement or the engagement of Independent Counsel
pursuant hereto.

                                       4

<PAGE>

         4.       Indemnification Process and Appeal.

                  a. Indemnification Payment. Indemnitee shall be entitled to
indemnification of Expenses, and shall receive payment thereof, from the Company
in accordance with this Agreement as soon as practicable after Indemnitee has
made written demand on the Company for indemnification, unless the Reviewing
Party has given a written opinion to the Company that Indemnitee is not entitled
to indemnification under applicable law.

                  b. Suit to Enforce Rights. Regardless of any action by the
Reviewing Party, if Indemnitee has not received full indemnification within
thirty days after making a demand in accordance with Section 4(a), Indemnitee
shall have the right to enforce its indemnification rights under this Agreement
by commencing litigation in any court in The Netherlands having subject matter
jurisdiction thereof and in which venue is proper seeking an initial
determination by the court or challenging any determination by the Reviewing
Party or any aspect thereof. The Company hereby consents to service of process
and to appear in any such proceeding. Any determination by the Reviewing Party
not challenged by the Indemnitee shall be binding on the Company and Indemnitee.
The remedy provided for in this Section 4 shall be in addition to any other
remedies available to Indemnitee in law or equity.

                  c. Defense to Indemnification, Burden of Proof, and
Presumptions. It shall be a defense to any action brought by Indemnitee against
the Company to enforce this Agreement (other than an action brought to enforce a
claim for Expenses incurred in defending a Proceeding in advance of its final
disposition where the required undertaking has been tendered to the Company)
that it is not permissible under applicable law for the Company to indemnify
Indemnitee for the amount claimed. In connection with any such action or any
determination by the Reviewing Party or otherwise as to whether Indemnitee is
entitled to be indemnified hereunder, the burden of proving such a defense or
determination shall be on the Company. Neither the failure of the Reviewing
Party or the Company (including its Board, independent legal counsel, or its
shareholders) to have made a determination prior to the commencement of such
action by Indemnitee that indemnification of the claimant is proper under the
circumstances because he has met the standard of conduct set forth in applicable
law, nor an actual determination by the Reviewing Party or Company (including
its Board, independent legal counsel, or its shareholders) that the Indemnitee
had not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that the Indemnitee has not met the applicable
standard of conduct. For purposes of this Agreement, the termination of any
claim, action, suit, or proceeding, by judgment, order, settlement (whether with
or without court approval), conviction, or upon a plea of nolo contendere, or
its equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law.

         5. Indemnification for Expenses Incurred in Enforcing Rights. The
Company shall indemnify Indemnitee against any and all Expenses and, if
requested by Indemnitee, shall (within ten business days of such request),
advance such Expenses to Indemnitee, that are incurred by Indemnitee in
connection with any claim asserted against or action brought by Indemnitee for

                                       5

<PAGE>

                  (i)      indemnification of Expenses or Expense Advances by
                           the Company under this Agreement or any other
                           agreement or under applicable law or the Company's
                           Articles of Association now or hereafter in effect
                           relating to indemnification for Indemnifiable Events,
                           and/or

                  (ii)     recovery under directors' and officers' liability
                           insurance policies maintained by the Company,
                           regardless of whether Indemnitee ultimately is
                           determined to be entitled to such indemnification,
                           Expense Advances, or insurance recovery, as the case
                           may be.

         6.       Notification and Defense of Proceeding.

                  a. Notice. Promptly after receipt by Indemnitee of notice of
the commencement of any Proceeding, Indemnitee will, if a claim in respect
thereof is to be made against the Company under this Agreement, notify the
Company of the commencement thereof; but the omission so to notify the Company
will not relieve it from any liability that it may have to Indemnitee, except as
provided in Section 6(c).

                  b. Defense. With respect to any Proceeding as to which
Indemnitee notifies the Company of the commencement thereof, the Company will be
entitled to participate in the Proceeding at its own expense and except as
otherwise provided below, to the extent the Company so wishes, it may assume the
defense thereof with counsel reasonably satisfactory to Indemnitee. After notice
from the Company to Indemnitee of its election to assume the defense of any
Proceeding, the Company will not be liable to Indemnitee under this Agreement or
otherwise for any Expenses subsequently incurred by Indemnitee in connection
with the defense of such Proceeding other than reasonable costs of investigation
or as otherwise provided below. Indemnitee shall have the right to employ his
own counsel in such Proceeding, but all Expenses related thereto incurred after
notice from the Company of its assumption of the defense shall be at
Indemnitee's expense unless: (i) the employment of counsel by Indemnitee has
been authorized by the Company, (ii) Indemnitee has reasonably determined that
there may be a conflict of interest between Indemnitee and the Company in the
defense of the Proceeding, (iii) after a Change in Control, the employment of
counsel by Indemnitee has been approved by the Independent Counsel, or (iv) the
Company shall not in fact have employed counsel to assume the defense of such
Proceeding, in each of which case all Expenses of the Proceeding shall be borne
by the Company. The Company shall not be entitled to assume the defense of any
Proceeding brought by or on behalf of the Company or as to which Indemnitee
shall have made the determination provided for in (ii) above.

                  c. Settlement of Claims. The Company shall not be liable to
indemnify Indemnitee under this Agreement or otherwise for any amounts paid in
settlement of any Proceeding effected without the Company's written consent,
provided, however, that if a Change in Control has occurred, the Company shall
be liable for indemnification of Indemnitee for amounts paid in settlement if
the Independent Counsel has approved the settlement. The Company shall not
settle any Proceeding in any manner that would impose any penalty or

                                       6

<PAGE>

limitation on Indemnitee without Indemnitee's written consent. Neither the
Company nor the Indemnitee will unreasonably withhold their consent to any
proposed settlement. The Company shall not be liable to indemnify the Indemnitee
under this Agreement with regard to any judicial award if the Company was not
given a reasonable and timely opportunity, at its expense, to participate in the
defense of such action; the Company's liability hereunder shall not be excused
if participation in the Proceeding by the Company was barred by this Agreement.

         7. Establishment of Trust. In the event of a Change in Control or a
Potential Change in Control, the Company shall, upon written request by
Indemnitee, create a Trust under the law of an appropriate jurisdiction which
recognizes trusts as legal entities for the benefit of the Indemnitee and from
time to time upon written request of Indemnitee shall fund the Trust in an
amount sufficient to satisfy any and all Expenses reasonably anticipated at the
time of each such request to be incurred in connection with investigating,
preparing for, participating in, and/or defending any Proceeding relating to an
Indemnifiable Event. The amount or amounts to be deposited in the Trust pursuant
to the foregoing funding obligation shall be determined by the Reviewing Party.
The terms of the Trust shall provide that upon a Change in Control, (i) the
Trust shall not be revoked or the principal thereof invaded, without the written
consent of the Indemnitee, (ii) the Trustee shall advance, within ten business
days of a request by the Indemnitee, any and all Expenses to the Indemnitee (and
the Indemnitee hereby agrees to reimburse the Trust under the same circumstances
for which the Indemnitee would be required to reimburse the Company under
Section 2(c) of this Agreement), (iii) the Trust shall continue to be funded by
the Company in accordance with the funding obligation set forth above, (iv) the
Trustee shall promptly pay to the Indemnitee all amounts for which the
Indemnitee shall be entitled to indemnification pursuant to this Agreement or
otherwise, and (v) all unexpended funds in the Trust shall revert to the Company
upon a final determination by the Reviewing Party or a court of competent
jurisdiction, as the case may be, that the Indemnitee has been fully indemnified
under the terms of this Agreement. The Trustee shall be chosen by the
Indemnitee. Nothing in this Section 7 shall relieve the Company of any of its
obligations under this Agreement. All income earned on the assets held in the
Trust shall be reported as income by the Company for federal, state, local, and
foreign tax purposes. The Company shall pay all costs of establishing and
maintaining the Trust and shall indemnify the Trustee against any and all
expenses (including attorneys' fees), claims, liabilities, loss, and damages
arising out of or relating to this Agreement or the establishment and
maintenance of the Trust.

         8. Non-Exclusivity. The rights of Indemnitee hereunder shall be in
addition to any other rights Indemnitee may have under the Company's Articles of
Association, applicable law, or otherwise. To the extent that a change in
applicable law (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under the
Company's Articles of Association, applicable law, or this Agreement, it is the
intent of the parties that Indemnitee enjoy by this Agreement the greater
benefits so afforded by such change.

         9. Liability Insurance. To the extent the Company maintains an
insurance policy or policies providing directors' and officers' liability
insurance, Indemnitee shall be covered by such policy or policies, in accordance
with its or their terms, to the maximum extent of the coverage available for any
Company director or officer.
                                       7

<PAGE>

         10. Period of Limitations. No legal action shall be brought and no
cause of action shall be asserted by or on behalf of the Company or any
affiliate of the Company against Indemnitee, Indemnitee's spouse, heirs,
executors, or personal or legal representatives after the expiration of two
years from the date of accrual of such cause of action, or such longer period as
may be required by state law under the circumstances. Any claim or cause of
action of the Company or its affiliate shall be extinguished and deemed released
unless asserted by the timely filing of a legal action within such period;
provided, however, that if any shorter period of limitations is otherwise
applicable to any such cause of action the shorter period shall govern.

         11. Amendment of this Agreement. No supplement, modification, or
amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement
shall operate as a waiver of any other provisions hereof (whether or not
similar), nor shall such waiver constitute a continuing waiver. Except as
specifically provided herein, no failure to exercise or any delay in exercising
any right or remedy hereunder shall constitute a waiver thereof.

         12. Subrogation. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and shall do
everything that may be necessary to secure such rights, including the execution
of such documents necessary to enable the Company effectively to bring suit to
enforce such rights.

         13. No Duplication of Payments. The Company shall not be liable under
this Agreement to make any payment in connection with any claim made against
Indemnitee to the extent Indemnitee has otherwise received payment (under any
insurance policy, or otherwise) of the amounts otherwise indemnifiable
hereunder.

         14. Binding Effect. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective
successors (including any direct or indirect successor by purchase, merger,
consolidation, or otherwise to all or substantially all of the business and/or
assets of the Company), assigns, spouses, heirs, and personal and legal
representatives. The Company shall require and cause any successor (whether
direct or indirect by purchase, merger, consolidation, or otherwise) to all,
substantially all, or a substantial part, of the business and/or assets of the
Company, by written agreement in form and substance satisfactory to Indemnitee,
expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform if no such
succession had taken place. The indemnification provided under this Agreement
shall continue as to Indemnitee for any action taken or not taken while serving
in an indemnified capacity pertaining to an Indemnifiable Event even though he
may have ceased to serve in such capacity at the time of any Proceeding.

         15. Severability. If any provision (or portion thereof) of this
Agreement shall be held by a court of competent jurisdiction to be invalid,
void, or otherwise unenforceable, the

                                       8

<PAGE>

remaining provisions shall remain enforceable to the fullest extent permitted by
law. Furthermore, to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of this Agreement
containing any provision held to be invalid, void, or otherwise unenforceable,
that is not itself invalid, void, or unenforceable) shall be construed so as to
give effect to the intent manifested by the provision held invalid, void, or
unenforceable.

         16. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of The Netherlands.

         17. Notices. All notices, demands, and other communications required or
permitted hereunder shall be made in writing and shall be deemed to have been
duly given if delivered by hand, against receipt, or mailed, postage prepaid,
certified or registered mail, return receipt requested, and addressed to:

                                Managing Director
                                Madge Networks N.V.
                                Transpolis Schiphol Airport
                                Polaris Avenue 1
                                2132 JH
                                Hoofddorp
                                The Netherlands

with copies to:                 Director of Legal Affairs
                                Madge Networks, Inc.
                                2310 North First Street
                                San Jose, CA 95131-1011

and to:                         Jan Koning, Esq.
                                Loeff Claeys Verbeke
                                Apollolaan 15
                                1077 AB Amsterdam
                                The Netherlands

and to Indemnitee at:           Robert H. Madge
                                XXX

Notice of change of address shall be effective only when done in accordance with
this Section. All notices complying with this Section shall be deemed to have
been received on the date of delivery or on the third business day after
mailing.

                                       9
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have duly executed and
delivered this Agreement as of the day specified above.

                                        COMPANY: Madge Networks N.V., a
                                                 corporation organized under the
                                                 laws of The Netherlands

                                        By:    /s/ Robert Madge
                                               ---------------------------------
                                        Name:           Robert H. Madge
                                        Title:           Chairman & CEO

                                        INDEMNITEE:  /s/ Robert Madge
                                                     ---------------------------
                                                          Robert H. Madge

                                       10

<PAGE>

                            INDEMNIFICATION AGREEMENT

         THIS AGREEMENT is entered into, effective as of 9 August 2000 between
Madge Networks N.V., a corporation organized under the laws of The Netherlands
(the "Company"), and Christopher Semprini ("Indemnitee").

         WHEREAS, it is essential to the Company, its subsidiaries and its
affiliates to retain and attract as directors and officers the most capable
persons available;

         WHEREAS, Indemnitee has agreed to serve as a director or as an officer
of the Company, its subsidiaries, or its affiliates;

         WHEREAS, both the Company and Indemnitee recognize the increased risk
of litigation and other claims currently being asserted against directors and
officers of corporations; and

         WHEREAS, in recognition of Indemnitee's need for substantial protection
against personal liability in order to enhance Indemnitee's continued and
effective service to the Company its subsidiaries and its affiliates, and in
order to induce Indemnitee to provide services to the Company or one of its
subsidiaries or affiliates as a director or an officer, the Company wishes to
provide in this Agreement for the indemnification of and the advancing of
expenses to Indemnitee to the fullest extent (whether partial or complete)
permitted by law and as set forth in this Agreement, and, to the extent
insurance is maintained, for the coverage of Indemnitee under the Company's
directors' and officers' liability insurance policies.

         NOW, THEREFORE, in consideration of the above premises and of
Indemnitee's continuing to serve the Company directly or, at its request, with
another enterprise, and intending to be legally bound hereby, the parties agree
as follows:

         1.       Certain Definitions:

                  a. Board: the Board of the Company.

                  b. Change in Control: shall be deemed to have occurred if (i)
any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities
Act of 1934, as amended), other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or a corporation owned
directly or indirectly by the shareholders of the Company in substantially the
same proportions as their ownership of stock of the Company, is or becomes the
"Beneficial Owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing 20% or more of the total
voting power represented by the Company's then outstanding Voting Securities, or
(ii) during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board and any new director whose
election by the Board or nomination for election by the Company's shareholders
was approved by

                                       11

<PAGE>

a vote of at least two-thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute a majority thereof, or (iii) the shareholders of the Company approve
a merger or consolidation of the Company with any other corporation, other than
a merger or consolidation that would result in the Voting Securities of the
Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into Voting Securities of the
surviving entity) at least 80% of the total voting power represented by the
Voting Securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or the shareholders of the
Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company (in one transaction or a series of
transactions) of all or substantially all of the Company's assets.

                  c. Expenses: any expense, liability, or loss, including
attorneys' fees, judgments, fines, ERISA excise taxes and penalties, amounts
paid or to be paid in settlement, any interest, assessments, or other charges
imposed thereon, and any federal, state, local, or foreign taxes imposed as a
result of the actual or deemed receipt of any payments under this Agreement,
paid or incurred in connection with investigating, defending, being a witness
in, or participating in (including on appeal), or preparing for any of the
foregoing in, any Proceeding relating to any Indemnifiable Event.

                  d. Indemnifiable Event: any event or occurrence that takes
place either prior to or after the execution of this Agreement, related to the
fact that Indemnitee is or was a director or an officer of the Company or a
subsidiary or affiliate of the Company, or while a director or officer is or was
serving at the request of the Company as a director, officer, employee, trustee,
agent, or fiduciary of another foreign or domestic corporation, partnership,
joint venture, employee benefit plan, trust, or other enterprise, or was a
director, officer, employee, or agent of a foreign or domestic corporation that
was a predecessor corporation of the Company or of another enterprise at the
request of such predecessor corporation, or related to anything done or not done
by Indemnitee in any such capacity, whether or not the basis of the Proceeding
is alleged action in an official capacity as a director, officer, employee, or
agent or in any other capacity while serving as a director, officer, employee,
or agent of the Company, as described above.

                  e. Independent Counsel: the person or body appointed in
connection with Section 3.

                  f. Potential Change in Control: shall be deemed to have
occurred if (i) the Company enters into an agreement or arrangement, the
consummation of which would result in the occurrence of a Change in Control;
(ii) any person (including the Company) publicly announces an intention to take
or to consider taking actions that, if consummated, would constitute a Change in
Control; (iii) any person (other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company acting in such capacity
or a corporation owned, directly or indirectly, by the shareholders of the
Company in substantially the same proportions as their ownership of stock of the
Company), who is or becomes the Beneficial
                                       12

<PAGE>

Owner, directly or indirectly, of securities of the Company representing 10% or
more of the combined voting power of the Company's then outstanding Voting
Securities, increases his beneficial ownership of such securities by 5% or more
over the percentage so owned by such person on the date hereof, or (iv) the
Board adopts a resolution to the effect that, for purposes of this Agreement, a
Potential Change in Control has occurred.

                  g. Proceeding: any threatened, pending, or completed action,
suit, or proceeding, or any inquiry, hearing, or investigation, whether
conducted by the Company or any other party, that Indemnitee in good faith
believes might lead to the institution of any such action, suit, or proceeding,
whether civil, criminal, administrative, investigative, or other.

                  h. Reviewing Party: the person or body appointed in accordance
with Section 3.

                  i. Voting Securities: any securities of the Company that vote
generally in the election of directors.

         2.       Agreement to Indemnify.

                  a. General Agreement. In the event Indemnitee was, is, or
becomes a party to or witness or other participant in, or is threatened to be
made a party to or witness or other participant in, a Proceeding by reason of
(or arising in part out of) an Indemnifiable Event, the Company shall indemnify
Indemnitee from and against any and all Expenses to the fullest extent permitted
by law, as the same exists or may hereafter be amended or interpreted (but in
the case of any such amendment or interpretation, only to the extent that such
amendment or interpretation permits the Company to provide broader
indemnification rights than were permitted prior thereto). The parties hereto
intend that this Agreement shall provide for indemnification in excess of that
expressly permitted by statute, including, without limitation, any
indemnification provided by the Company's Articles of Association, vote of its
shareholders or disinterested directors, or applicable law.

                  b. Initiation of Proceeding. Notwithstanding anything in this
Agreement to the contrary, Indemnitee shall not be entitled to indemnification
pursuant to this Agreement in connection with any Proceeding initiated by
Indemnitee against the Company or any director or officer of the Company or a
subsidiary or affiliate of the Company unless (i) the Company has joined in or
the Board has consented to the initiation of such Proceeding; (ii) the
Proceeding is one to enforce indemnification rights under Section 5; or (iii)
the Proceeding is instituted after a Change in Control and Independent Counsel
has approved its initiation.

                  c. Expense Advances. If so requested by Indemnitee, the
Company shall advance (within ten business days of such request) any and all
Expenses to Indemnitee (an "Expense Advance"); provided that, if and to the
extent that the Reviewing Party determines that Indemnitee would not be
permitted to be so indemnified under applicable law, the Company shall be
entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the
Company) for all such amounts theretofore paid. If Indemnitee has commenced
legal proceedings in a court of

                                       13
<PAGE>

competent jurisdiction to secure a determination that Indemnitee should be
indemnified under applicable law, as provided in Section 4, any determination
made by the Reviewing Party that Indemnitee would not be permitted to be
indemnified under applicable law shall not be binding and Indemnitee shall not
be required to reimburse the Company for any Expense Advance until a final
judicial determination is made with respect thereto (as to which all rights of
appeal therefrom have been exhausted or have lapsed). Indemnitee's obligation to
reimburse the Company for Expense Advances shall be unsecured and no interest
shall be charged thereon.

                  d. Mandatory Indemnification. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee has been successful
on the merits in defense of any Proceeding relating in whole or in part to an
Indemnifiable Event or in defense of any issue or matter therein, Indemnitee
shall be indemnified against all Expenses incurred in connection therewith.

                  e. Partial Indemnification. If Indemnitee is entitled under
any provision of this Agreement to indemnification by the Company for some or a
portion of Expenses, but not, however, for the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion thereof to which
Indemnitee is entitled.

                  f. Prohibited Indemnification. No indemnification pursuant to
this Agreement shall be paid by the Company in the event Indemnitee is found in
the applicable Proceeding to have committed gross negligence or an intentionally
wrongful act.

         3. Reviewing Party. Prior to any Change in Control, the Reviewing Party
shall be any appropriate person or body consisting of a member or members of the
Board or any other person or body appointed by the Board who is not a party to
the particular Proceeding with respect to which Indemnitee is seeking
indemnification; after a Change in Control, the Reviewing Party shall be the
Independent Counsel referred to below. With respect to all matters arising after
a Change in Control (other than a Change in Control approved by a majority of
the directors on the Board who were directors immediately prior to such Change
in Control) concerning the rights of Indemnitee to indemnity payments and
Expense Advances under this Agreement or any other agreement or under applicable
law or the Company's Articles of Association now or hereafter in effect relating
to indemnification for Indemnifiable Events, the Company shall seek legal advice
only from Independent Counsel selected by Indemnitee and approved by the Company
(which approval shall not be unreasonably withheld), and who has not otherwise
performed services for the Company or the Indemnitee (other than in connection
with indemnification matters) within the last five years. The Independent
Counsel shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine
Indemnitee's rights under this Agreement. Such counsel, among other things,
shall render its written opinion to the Company and Indemnitee as to whether and
to what extent the Indemnitee should be permitted to be indemnified under
applicable law. The Company agrees to pay the reasonable fees of the Independent
Counsel and to indemnify fully such counsel against any and all expenses
(including attorneys' fees), claims, liabilities, loss, and damages arising out
of or relating to this Agreement or the engagement of Independent Counsel
pursuant hereto.

                                       14

<PAGE>

         4.       Indemnification Process and Appeal.

                  a. Indemnification Payment. Indemnitee shall be entitled to
indemnification of Expenses, and shall receive payment thereof, from the Company
in accordance with this Agreement as soon as practicable after Indemnitee has
made written demand on the Company for indemnification, unless the Reviewing
Party has given a written opinion to the Company that Indemnitee is not entitled
to indemnification under applicable law.

                  b. Suit to Enforce Rights. Regardless of any action by the
Reviewing Party, if Indemnitee has not received full indemnification within
thirty days after making a demand in accordance with Section 4(a), Indemnitee
shall have the right to enforce its indemnification rights under this Agreement
by commencing litigation in any court in The Netherlands having subject matter
jurisdiction thereof and in which venue is proper seeking an initial
determination by the court or challenging any determination by the Reviewing
Party or any aspect thereof. The Company hereby consents to service of process
and to appear in any such proceeding. Any determination by the Reviewing Party
not challenged by the Indemnitee shall be binding on the Company and Indemnitee.
The remedy provided for in this Section 4 shall be in addition to any other
remedies available to Indemnitee in law or equity.

                  c. Defense to Indemnification, Burden of Proof, and
Presumptions. It shall be a defense to any action brought by Indemnitee against
the Company to enforce this Agreement (other than an action brought to enforce a
claim for Expenses incurred in defending a Proceeding in advance of its final
disposition where the required undertaking has been tendered to the Company)
that it is not permissible under applicable law for the Company to indemnify
Indemnitee for the amount claimed. In connection with any such action or any
determination by the Reviewing Party or otherwise as to whether Indemnitee is
entitled to be indemnified hereunder, the burden of proving such a defense or
determination shall be on the Company. Neither the failure of the Reviewing
Party or the Company (including its Board, independent legal counsel, or its
shareholders) to have made a determination prior to the commencement of such
action by Indemnitee that indemnification of the claimant is proper under the
circumstances because he has met the standard of conduct set forth in applicable
law, nor an actual determination by the Reviewing Party or Company (including
its Board, independent legal counsel, or its shareholders) that the Indemnitee
had not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that the Indemnitee has not met the applicable
standard of conduct. For purposes of this Agreement, the termination of any
claim, action, suit, or proceeding, by judgment, order, settlement (whether with
or without court approval), conviction, or upon a plea of nolo contendere, or
its equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law.

         5. Indemnification for Expenses Incurred in Enforcing Rights. The
Company shall indemnify Indemnitee against any and all Expenses and, if
requested by Indemnitee, shall (within ten business days of such request),
advance such Expenses to Indemnitee, that are incurred by Indemnitee in
connection with any claim asserted against or action brought by Indemnitee for

                                       15
<PAGE>

                  (i)      indemnification of Expenses or Expense Advances by
                           the Company under this Agreement or any other
                           agreement or under applicable law or the Company's
                           Articles of Association now or hereafter in effect
                           relating to indemnification for Indemnifiable Events,
                           and/or

                  (ii)     recovery under directors' and officers' liability
                           insurance policies maintained by the Company,
                           regardless of whether Indemnitee ultimately is
                           determined to be entitled to such indemnification,
                           Expense Advances, or insurance recovery, as the case
                           may be.

         6.       Notification and Defense of Proceeding.

                  a. Notice. Promptly after receipt by Indemnitee of notice of
the commencement of any Proceeding, Indemnitee will, if a claim in respect
thereof is to be made against the Company under this Agreement, notify the
Company of the commencement thereof; but the omission so to notify the Company
will not relieve it from any liability that it may have to Indemnitee, except as
provided in Section 6(c).

                  b. Defense. With respect to any Proceeding as to which
Indemnitee notifies the Company of the commencement thereof, the Company will be
entitled to participate in the Proceeding at its own expense and except as
otherwise provided below, to the extent the Company so wishes, it may assume the
defense thereof with counsel reasonably satisfactory to Indemnitee. After notice
from the Company to Indemnitee of its election to assume the defense of any
Proceeding, the Company will not be liable to Indemnitee under this Agreement or
otherwise for any Expenses subsequently incurred by Indemnitee in connection
with the defense of such Proceeding other than reasonable costs of investigation
or as otherwise provided below. Indemnitee shall have the right to employ his
own counsel in such Proceeding, but all Expenses related thereto incurred after
notice from the Company of its assumption of the defense shall be at
Indemnitee's expense unless: (i) the employment of counsel by Indemnitee has
been authorized by the Company, (ii) Indemnitee has reasonably determined that
there may be a conflict of interest between Indemnitee and the Company in the
defense of the Proceeding, (iii) after a Change in Control, the employment of
counsel by Indemnitee has been approved by the Independent Counsel, or (iv) the
Company shall not in fact have employed counsel to assume the defense of such
Proceeding, in each of which case all Expenses of the Proceeding shall be borne
by the Company. The Company shall not be entitled to assume the defense of any
Proceeding brought by or on behalf of the Company or as to which Indemnitee
shall have made the determination provided for in (ii) above.

                  c. Settlement of Claims. The Company shall not be liable to
indemnify Indemnitee under this Agreement or otherwise for any amounts paid in
settlement of any Proceeding effected without the Company's written consent,
provided, however, that if a Change in Control has occurred, the Company shall
be liable for indemnification of Indemnitee for amounts paid in settlement if
the Independent Counsel has approved the settlement. The Company shall not
settle any Proceeding in any manner that would impose any penalty or

                                       16
<PAGE>

limitation on Indemnitee without Indemnitee's written consent. Neither the
Company nor the Indemnitee will unreasonably withhold their consent to any
proposed settlement. The Company shall not be liable to indemnify the Indemnitee
under this Agreement with regard to any judicial award if the Company was not
given a reasonable and timely opportunity, at its expense, to participate in the
defense of such action; the Company's liability hereunder shall not be excused
if participation in the Proceeding by the Company was barred by this Agreement.

         7. Establishment of Trust. In the event of a Change in Control or a
Potential Change in Control, the Company shall, upon written request by
Indemnitee, create a Trust under the law of an appropriate jurisdiction which
recognizes trusts as legal entities for the benefit of the Indemnitee and from
time to time upon written request of Indemnitee shall fund the Trust in an
amount sufficient to satisfy any and all Expenses reasonably anticipated at the
time of each such request to be incurred in connection with investigating,
preparing for, participating in, and/or defending any Proceeding relating to an
Indemnifiable Event. The amount or amounts to be deposited in the Trust pursuant
to the foregoing funding obligation shall be determined by the Reviewing Party.
The terms of the Trust shall provide that upon a Change in Control, (i) the
Trust shall not be revoked or the principal thereof invaded, without the written
consent of the Indemnitee, (ii) the Trustee shall advance, within ten business
days of a request by the Indemnitee, any and all Expenses to the Indemnitee (and
the Indemnitee hereby agrees to reimburse the Trust under the same circumstances
for which the Indemnitee would be required to reimburse the Company under
Section 2(c) of this Agreement), (iii) the Trust shall continue to be funded by
the Company in accordance with the funding obligation set forth above, (iv) the
Trustee shall promptly pay to the Indemnitee all amounts for which the
Indemnitee shall be entitled to indemnification pursuant to this Agreement or
otherwise, and (v) all unexpended funds in the Trust shall revert to the Company
upon a final determination by the Reviewing Party or a court of competent
jurisdiction, as the case may be, that the Indemnitee has been fully indemnified
under the terms of this Agreement. The Trustee shall be chosen by the
Indemnitee. Nothing in this Section 7 shall relieve the Company of any of its
obligations under this Agreement. All income earned on the assets held in the
Trust shall be reported as income by the Company for federal, state, local, and
foreign tax purposes. The Company shall pay all costs of establishing and
maintaining the Trust and shall indemnify the Trustee against any and all
expenses (including attorneys' fees), claims, liabilities, loss, and damages
arising out of or relating to this Agreement or the establishment and
maintenance of the Trust.

         8. Non-Exclusivity. The rights of Indemnitee hereunder shall be in
addition to any other rights Indemnitee may have under the Company's Articles of
Association, applicable law, or otherwise. To the extent that a change in
applicable law (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under the
Company's Articles of Association, applicable law, or this Agreement, it is the
intent of the parties that Indemnitee enjoy by this Agreement the greater
benefits so afforded by such change.

         9. Liability Insurance. To the extent the Company maintains an
insurance policy or policies providing directors' and officers' liability
insurance, once Indemnitee becomes a director, Indemnitee shall be covered by
such policy or policies, in accordance with its or their terms, to the maximum
extent of the coverage available for any Company director or officer.

                                       17
<PAGE>

         10. Period of Limitations. No legal action shall be brought and no
cause of action shall be asserted by or on behalf of the Company or any
affiliate of the Company against Indemnitee, Indemnitee's spouse, heirs,
executors, or personal or legal representatives after the expiration of two
years from the date of accrual of such cause of action, or such longer period as
may be required by state law under the circumstances. Any claim or cause of
action of the Company or its affiliate shall be extinguished and deemed released
unless asserted by the timely filing of a legal action within such period;
provided, however, that if any shorter period of limitations is otherwise
applicable to any such cause of action the shorter period shall govern.

         11. Amendment of this Agreement. No supplement, modification, or
amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement
shall operate as a waiver of any other provisions hereof (whether or not
similar), nor shall such waiver constitute a continuing waiver. Except as
specifically provided herein, no failure to exercise or any delay in exercising
any right or remedy hereunder shall constitute a waiver thereof.

         12. Subrogation. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and shall do
everything that may be necessary to secure such rights, including the execution
of such documents necessary to enable the Company effectively to bring suit to
enforce such rights.

         13. No Duplication of Payments. The Company shall not be liable under
this Agreement to make any payment in connection with any claim made against
Indemnitee to the extent Indemnitee has otherwise received payment (under any
insurance policy, or otherwise) of the amounts otherwise indemnifiable
hereunder.

         14. Binding Effect. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective
successors (including any direct or indirect successor by purchase, merger,
consolidation, or otherwise to all or substantially all of the business and/or
assets of the Company), assigns, spouses, heirs, and personal and legal
representatives. The Company shall require and cause any successor (whether
direct or indirect by purchase, merger, consolidation, or otherwise) to all,
substantially all, or a substantial part, of the business and/or assets of the
Company, by written agreement in form and substance satisfactory to Indemnitee,
expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform if no such
succession had taken place. The indemnification provided under this Agreement
shall continue as to Indemnitee for any action taken or not taken while serving
in an indemnified capacity pertaining to an Indemnifiable Event even though he
may have ceased to serve in such capacity at the time of any Proceeding.

         15. Severability. If any provision (or portion thereof) of this
Agreement shall be held by a court of competent jurisdiction to be invalid,
void, or otherwise unenforceable, the

                                       18
<PAGE>

remaining provisions shall remain enforceable to the fullest extent permitted by
law. Furthermore, to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of this Agreement
containing any provision held to be invalid, void, or otherwise unenforceable,
that is not itself invalid, void, or unenforceable) shall be construed so as to
give effect to the intent manifested by the provision held invalid, void, or
unenforceable.

         16. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of The Netherlands.

         17. Notices. All notices, demands, and other communications required or
permitted hereunder shall be made in writing and shall be deemed to have been
duly given if delivered by hand, against receipt, or mailed, postage prepaid,
certified or registered mail, return receipt requested, and addressed to:

                                Managing Director
                                Madge Networks N.V.
                                Transpolis Schiphol Airport
                                Polaris Avenue 1
                                2132 JH
                                Hoofddorp
                                The Netherlands

with copies to:                 Legal Counsel
                                Madge Europe
                                Framewood Road
                                Wexham Slough
                                Berkshire SL3 6PJ

and to:                         Arnout Stroeve
                                Houthoff Buruma
                                Parnassusweg 126
                                1070 AM Amsterdam
                                The Netherlands

and to Indemnitee at:           Christopher Semprini
                                XXX

Notice of change of address shall be effective only when done in accordance with
this Section. All notices complying with this Section shall be deemed to have
been received on the date of delivery or on the third business day after
mailing.

                                       19
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have duly executed and
delivered this Agreement as of the day specified above.

                                        COMPANY: Madge Networks N.V., a
                                                 corporation organized under the
                                                 laws of The Netherlands

                                        Madge Networks N.V.

                                        By: /s/ Martin Malina
                                            ------------------------------------
                                        Name:          Martin Malina
                                        Title:       Managing Director

                                        INDEMNITEE: /s/ Christopher Semprini
                                                    ----------------------------
                                                        Christopher Semprini

                                       20
<PAGE>

                            INDEMNIFICATION AGREEMENT

         THIS AGREEMENT is entered into, effective as of 19 July 2001 between
Madge Networks N.V., a corporation organized under the laws of The Netherlands
(the "Company"), and Martin Malina ("Indemnitee").

         WHEREAS, it is essential to the Company, its subsidiaries and its
affiliates to retain and attract as directors and officers the most capable
persons available;

         WHEREAS, Indemnitee has agreed to serve as a director or as an officer
of the Company, its subsidiaries, or its affiliates;

         WHEREAS, both the Company and Indemnitee recognize the increased risk
of litigation and other claims currently being asserted against directors and
officers of corporations; and

         WHEREAS, in recognition of Indemnitee's need for substantial protection
against personal liability in order to enhance Indemnitee's continued and
effective service to the Company its subsidiaries and its affiliates, and in
order to induce Indemnitee to provide services to the Company or one of its
subsidiaries or affiliates as a director or an officer, the Company wishes to
provide in this Agreement for the indemnification of and the advancing of
expenses to Indemnitee to the fullest extent (whether partial or complete)
permitted by law and as set forth in this Agreement, and, to the extent
insurance is maintained, for the coverage of Indemnitee under the Company's
directors' and officers' liability insurance policies.

         NOW, THEREFORE, in consideration of the above premises and of
Indemnitee's continuing to serve the Company directly or, at its request, with
another enterprise, and intending to be legally bound hereby, the parties agree
as follows:

         1.       Certain Definitions:

                  a. Board: the Board of the Company.

                  b. Change in Control: shall be deemed to have occurred if (i)
any "person" (as such term is used in Sections 13(d) and 14(d) of the Securities
Act of 1934, as amended), other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or a corporation owned
directly or indirectly by the shareholders of the Company in substantially the
same proportions as their ownership of stock of the Company, is or becomes the
"Beneficial Owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing 20% or more of the total
voting power represented by the Company's then outstanding Voting Securities, or
(ii) during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board and any new director whose

                                       21
<PAGE>

election by the Board or nomination for election by the Company's shareholders
was approved by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors at the beginning of the period or whose
election or nomination for election was previously so approved, cease for any
reason to constitute a majority thereof, or (iii) the shareholders of the
Company approve a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation that would result in the
Voting Securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into Voting Securities of the surviving entity) at least 80% of the total voting
power represented by the Voting Securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation, or the
shareholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company (in one
transaction or a series of transactions) of all or substantially all of the
Company's assets.

                  c. Expenses: any expense, liability, or loss, including
attorneys' fees, judgments, fines, ERISA excise taxes and penalties, amounts
paid or to be paid in settlement, any interest, assessments, or other charges
imposed thereon, and any federal, state, local, or foreign taxes imposed as a
result of the actual or deemed receipt of any payments under this Agreement,
paid or incurred in connection with investigating, defending, being a witness
in, or participating in (including on appeal), or preparing for any of the
foregoing in, any Proceeding relating to any Indemnifiable Event.

                  d. Indemnifiable Event: any event or occurrence that takes
place either prior to or after the execution of this Agreement, related to the
fact that Indemnitee is or was a director or an officer of the Company or a
subsidiary or affiliate of the Company, or while a director or officer is or was
serving at the request of the Company as a director, officer, employee, trustee,
agent, or fiduciary of another foreign or domestic corporation, partnership,
joint venture, employee benefit plan, trust, or other enterprise, or was a
director, officer, employee, or agent of a foreign or domestic corporation that
was a predecessor corporation of the Company or of another enterprise at the
request of such predecessor corporation, or related to anything done or not done
by Indemnitee in any such capacity, whether or not the basis of the Proceeding
is alleged action in an official capacity as a director, officer, employee, or
agent or in any other capacity while serving as a director, officer, employee,
or agent of the Company, as described above.

                  e. Independent Counsel: the person or body appointed in
connection with Section 3.

                  f. Potential Change in Control: shall be deemed to have
occurred if (i) the Company enters into an agreement or arrangement, the
consummation of which would result in the occurrence of a Change in Control;
(ii) any person (including the Company) publicly announces an intention to take
or to consider taking actions that, if consummated, would constitute a Change in
Control; (iii) any person (other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company acting in such capacity
or a corporation owned, directly or indirectly, by the shareholders of the
Company in substantially the

                                       22
<PAGE>

same proportions as their ownership of stock of the Company), who is or becomes
the Beneficial Owner, directly or indirectly, of securities of the Company
representing 10% or more of the combined voting power of the Company's then
outstanding Voting Securities, increases his beneficial ownership of such
securities by 5% or more over the percentage so owned by such person on the date
hereof, or (iv) the Board adopts a resolution to the effect that, for purposes
of this Agreement, a Potential Change in Control has occurred.

                  g. Proceeding: any threatened, pending, or completed action,
suit, or proceeding, or any inquiry, hearing, or investigation, whether
conducted by the Company or any other party, that Indemnitee in good faith
believes might lead to the institution of any such action, suit, or proceeding,
whether civil, criminal, administrative, investigative, or other.

                  h. Reviewing Party: the person or body appointed in accordance
with Section 3.

                  i. Voting Securities: any securities of the Company that vote
generally in the election of directors.

         2.       Agreement to Indemnify.

                  a. General Agreement. In the event Indemnitee was, is, or
becomes a party to or witness or other participant in, or is threatened to be
made a party to or witness or other participant in, a Proceeding by reason of
(or arising in part out of) an Indemnifiable Event, the Company shall indemnify
Indemnitee from and against any and all Expenses to the fullest extent permitted
by law, as the same exists or may hereafter be amended or interpreted (but in
the case of any such amendment or interpretation, only to the extent that such
amendment or interpretation permits the Company to provide broader
indemnification rights than were permitted prior thereto). The parties hereto
intend that this Agreement shall provide for indemnification in excess of that
expressly permitted by statute, including, without limitation, any
indemnification provided by the Company's Articles of Association, vote of its
shareholders or disinterested directors, or applicable law.

                  b. Initiation of Proceeding. Notwithstanding anything in this
Agreement to the contrary, Indemnitee shall not be entitled to indemnification
pursuant to this Agreement in connection with any Proceeding initiated by
Indemnitee against the Company or any director or officer of the Company or a
subsidiary or affiliate of the Company unless (i) the Company has joined in or
the Board has consented to the initiation of such Proceeding; (ii) the
Proceeding is one to enforce indemnification rights under Section 5; or (iii)
the Proceeding is instituted after a Change in Control and Independent Counsel
has approved its initiation.

                  c. Expense Advances. If so requested by Indemnitee, the
Company shall advance (within ten business days of such request) any and all
Expenses to Indemnitee (an "Expense Advance"); provided that, if and to the
extent that the Reviewing Party determines that Indemnitee would not be
permitted to be so indemnified under applicable law, the Company shall be
entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the
Company) for all

                                       23
<PAGE>

such amounts theretofore paid. If Indemnitee has commenced legal proceedings in
a court of competent jurisdiction to secure a determination that Indemnitee
should be indemnified under applicable law, as provided in Section 4, any
determination made by the Reviewing Party that Indemnitee would not be permitted
to be indemnified under applicable law shall not be binding and Indemnitee shall
not be required to reimburse the Company for any Expense Advance until a final
judicial determination is made with respect thereto (as to which all rights of
appeal therefrom have been exhausted or have lapsed). Indemnitee's obligation to
reimburse the Company for Expense Advances shall be unsecured and no interest
shall be charged thereon.

                  d. Mandatory Indemnification. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee has been successful
on the merits in defense of any Proceeding relating in whole or in part to an
Indemnifiable Event or in defense of any issue or matter therein, Indemnitee
shall be indemnified against all Expenses incurred in connection therewith.

                  e. Partial Indemnification. If Indemnitee is entitled under
any provision of this Agreement to indemnification by the Company for some or a
portion of Expenses, but not, however, for the total amount thereof, the Company
shall nevertheless indemnify Indemnitee for the portion thereof to which
Indemnitee is entitled.

                  f. Prohibited Indemnification. No indemnification pursuant to
this Agreement shall be paid by the Company in the event Indemnitee is found in
the applicable Proceeding to have committed gross negligence or an intentionally
wrongful act.

         3. Reviewing Party. Prior to any Change in Control, the Reviewing Party
shall be any appropriate person or body consisting of a member or members of the
Board or any other person or body appointed by the Board who is not a party to
the particular Proceeding with respect to which Indemnitee is seeking
indemnification; after a Change in Control, the Reviewing Party shall be the
Independent Counsel referred to below. With respect to all matters arising after
a Change in Control (other than a Change in Control approved by a majority of
the directors on the Board who were directors immediately prior to such Change
in Control) concerning the rights of Indemnitee to indemnity payments and
Expense Advances under this Agreement or any other agreement or under applicable
law or the Company's Articles of Association now or hereafter in effect relating
to indemnification for Indemnifiable Events, the Company shall seek legal advice
only from Independent Counsel selected by Indemnitee and approved by the Company
(which approval shall not be unreasonably withheld), and who has not otherwise
performed services for the Company or the Indemnitee (other than in connection
with indemnification matters) within the last five years. The Independent
Counsel shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine
Indemnitee's rights under this Agreement. Such counsel, among other things,
shall render its written opinion to the Company and Indemnitee as to whether and
to what extent the Indemnitee should be permitted to be indemnified under
applicable law. The Company agrees to pay the reasonable fees of the Independent
Counsel and to indemnify fully such counsel against

                                       24
<PAGE>

any and all expenses (including attorneys' fees), claims, liabilities, loss, and
damages arising out of or relating to this Agreement or the engagement of
Independent Counsel pursuant hereto.

         4.       Indemnification Process and Appeal.

                  a. Indemnification Payment. Indemnitee shall be entitled to
indemnification of Expenses, and shall receive payment thereof, from the Company
in accordance with this Agreement as soon as practicable after Indemnitee has
made written demand on the Company for indemnification, unless the Reviewing
Party has given a written opinion to the Company that Indemnitee is not entitled
to indemnification under applicable law.

                  b. Suit to Enforce Rights. Regardless of any action by the
Reviewing Party, if Indemnitee has not received full indemnification within
thirty days after making a demand in accordance with Section 4(a), Indemnitee
shall have the right to enforce its indemnification rights under this Agreement
by commencing litigation in any court in The Netherlands having subject matter
jurisdiction thereof and in which venue is proper seeking an initial
determination by the court or challenging any determination by the Reviewing
Party or any aspect thereof. The Company hereby consents to service of process
and to appear in any such proceeding. Any determination by the Reviewing Party
not challenged by the Indemnitee shall be binding on the Company and Indemnitee.
The remedy provided for in this Section 4 shall be in addition to any other
remedies available to Indemnitee in law or equity.

                  c. Defense to Indemnification, Burden of Proof, and
Presumptions. It shall be a defense to any action brought by Indemnitee against
the Company to enforce this Agreement (other than an action brought to enforce a
claim for Expenses incurred in defending a Proceeding in advance of its final
disposition where the required undertaking has been tendered to the Company)
that it is not permissible under applicable law for the Company to indemnify
Indemnitee for the amount claimed. In connection with any such action or any
determination by the Reviewing Party or otherwise as to whether Indemnitee is
entitled to be indemnified hereunder, the burden of proving such a defense or
determination shall be on the Company. Neither the failure of the Reviewing
Party or the Company (including its Board, independent legal counsel, or its
shareholders) to have made a determination prior to the commencement of such
action by Indemnitee that indemnification of the claimant is proper under the
circumstances because he has met the standard of conduct set forth in applicable
law, nor an actual determination by the Reviewing Party or Company (including
its Board, independent legal counsel, or its shareholders) that the Indemnitee
had not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that the Indemnitee has not met the applicable
standard of conduct. For purposes of this Agreement, the termination of any
claim, action, suit, or proceeding, by judgment, order, settlement (whether with
or without court approval), conviction, or upon a plea of nolo contendere, or
its equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law.

                                       25
<PAGE>

         5. Indemnification for Expenses Incurred in Enforcing Rights. The
Company shall indemnify Indemnitee against any and all Expenses and, if
requested by Indemnitee, shall (within ten business days of such request),
advance such Expenses to Indemnitee, that are incurred by Indemnitee in
connection with any claim asserted against or action brought by Indemnitee for

                  (i)      indemnification of Expenses or Expense Advances by
                           the Company under this Agreement or any other
                           agreement or under applicable law or the Company's
                           Articles of Association now or hereafter in effect
                           relating to indemnification for Indemnifiable Events,
                           and/or

                  (ii)     recovery under directors' and officers' liability
                           insurance policies maintained by the Company,
                           regardless of whether Indemnitee ultimately is
                           determined to be entitled to such indemnification,
                           Expense Advances, or insurance recovery, as the case
                           may be.

         6.       Notification and Defense of Proceeding.

                  a. Notice. Promptly after receipt by Indemnitee of notice of
the commencement of any Proceeding, Indemnitee will, if a claim in respect
thereof is to be made against the Company under this Agreement, notify the
Company of the commencement thereof; but the omission so to notify the Company
will not relieve it from any liability that it may have to Indemnitee, except as
provided in Section 6(c).

                  b. Defense. With respect to any Proceeding as to which
Indemnitee notifies the Company of the commencement thereof, the Company will be
entitled to participate in the Proceeding at its own expense and except as
otherwise provided below, to the extent the Company so wishes, it may assume the
defense thereof with counsel reasonably satisfactory to Indemnitee. After notice
from the Company to Indemnitee of its election to assume the defense of any
Proceeding, the Company will not be liable to Indemnitee under this Agreement or
otherwise for any Expenses subsequently incurred by Indemnitee in connection
with the defense of such Proceeding other than reasonable costs of investigation
or as otherwise provided below. Indemnitee shall have the right to employ his
own counsel in such Proceeding, but all Expenses related thereto incurred after
notice from the Company of its assumption of the defense shall be at
Indemnitee's expense unless: (i) the employment of counsel by Indemnitee has
been authorized by the Company, (ii) Indemnitee has reasonably determined that
there may be a conflict of interest between Indemnitee and the Company in the
defense of the Proceeding, (iii) after a Change in Control, the employment of
counsel by Indemnitee has been approved by the Independent Counsel, or (iv) the
Company shall not in fact have employed counsel to assume the defense of such
Proceeding, in each of which case all Expenses of the Proceeding shall be borne
by the Company. The Company shall not be entitled to assume the defense of any
Proceeding brought by or on behalf of the Company or as to which Indemnitee
shall have made the determination provided for in (ii) above.

                  c. Settlement of Claims. The Company shall not be liable to
indemnify Indemnitee under this Agreement or otherwise for any amounts paid in
settlement of any

                                       26
<PAGE>

Proceeding effected without the Company's written consent, provided, however,
that if a Change in Control has occurred, the Company shall be liable for
indemnification of Indemnitee for amounts paid in settlement if the Independent
Counsel has approved the settlement. The Company shall not settle any Proceeding
in any manner that would impose any penalty or limitation on Indemnitee without
Indemnitee's written consent. Neither the Company nor the Indemnitee will
unreasonably withhold their consent to any proposed settlement. The Company
shall not be liable to indemnify the Indemnitee under this Agreement with regard
to any judicial award if the Company was not given a reasonable and timely
opportunity, at its expense, to participate in the defense of such action; the
Company's liability hereunder shall not be excused if participation in the
Proceeding by the Company was barred by this Agreement.

         7. Establishment of Trust. In the event of a Change in Control or a
Potential Change in Control, the Company shall, upon written request by
Indemnitee, create a Trust under the law of an appropriate jurisdiction which
recognizes trusts as legal entities for the benefit of the Indemnitee and from
time to time upon written request of Indemnitee shall fund the Trust in an
amount sufficient to satisfy any and all Expenses reasonably anticipated at the
time of each such request to be incurred in connection with investigating,
preparing for, participating in, and/or defending any Proceeding relating to an
Indemnifiable Event. The amount or amounts to be deposited in the Trust pursuant
to the foregoing funding obligation shall be determined by the Reviewing Party.
The terms of the Trust shall provide that upon a Change in Control, (i) the
Trust shall not be revoked or the principal thereof invaded, without the written
consent of the Indemnitee, (ii) the Trustee shall advance, within ten business
days of a request by the Indemnitee, any and all Expenses to the Indemnitee (and
the Indemnitee hereby agrees to reimburse the Trust under the same circumstances
for which the Indemnitee would be required to reimburse the Company under
Section 2(c) of this Agreement), (iii) the Trust shall continue to be funded by
the Company in accordance with the funding obligation set forth above, (iv) the
Trustee shall promptly pay to the Indemnitee all amounts for which the
Indemnitee shall be entitled to indemnification pursuant to this Agreement or
otherwise, and (v) all unexpended funds in the Trust shall revert to the Company
upon a final determination by the Reviewing Party or a court of competent
jurisdiction, as the case may be, that the Indemnitee has been fully indemnified
under the terms of this Agreement. The Trustee shall be chosen by the
Indemnitee. Nothing in this Section 7 shall relieve the Company of any of its
obligations under this Agreement. All income earned on the assets held in the
Trust shall be reported as income by the Company for federal, state, local, and
foreign tax purposes. The Company shall pay all costs of establishing and
maintaining the Trust and shall indemnify the Trustee against any and all
expenses (including attorneys' fees), claims, liabilities, loss, and damages
arising out of or relating to this Agreement or the establishment and
maintenance of the Trust.

         8. Non-Exclusivity. The rights of Indemnitee hereunder shall be in
addition to any other rights Indemnitee may have under the Company's Articles of
Association, applicable law, or otherwise. To the extent that a change in
applicable law (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under the
Company's Articles of Association, applicable law, or this Agreement, it is the
intent of the parties that Indemnitee enjoy by this Agreement the greater
benefits so afforded by such change.

                                       27
<PAGE>

         9. Liability Insurance. To the extent the Company maintains an
insurance policy or policies providing directors' and officers' liability
insurance, once Indemnitee becomes a director, Indemnitee shall be covered by
such policy or policies, in accordance with its or their terms, to the maximum
extent of the coverage available for any Company director or officer.

         10. Period of Limitations. No legal action shall be brought and no
cause of action shall be asserted by or on behalf of the Company or any
affiliate of the Company against Indemnitee, Indemnitee's spouse, heirs,
executors, or personal or legal representatives after the expiration of two
years from the date of accrual of such cause of action, or such longer period as
may be required by state law under the circumstances. Any claim or cause of
action of the Company or its affiliate shall be extinguished and deemed released
unless asserted by the timely filing of a legal action within such period;
provided, however, that if any shorter period of limitations is otherwise
applicable to any such cause of action the shorter period shall govern.

         11. Amendment of this Agreement. No supplement, modification, or
amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement
shall operate as a waiver of any other provisions hereof (whether or not
similar), nor shall such waiver constitute a continuing waiver. Except as
specifically provided herein, no failure to exercise or any delay in exercising
any right or remedy hereunder shall constitute a waiver thereof.

         12. Subrogation. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all papers required and shall do
everything that may be necessary to secure such rights, including the execution
of such documents necessary to enable the Company effectively to bring suit to
enforce such rights.

         13. No Duplication of Payments. The Company shall not be liable under
this Agreement to make any payment in connection with any claim made against
Indemnitee to the extent Indemnitee has otherwise received payment (under any
insurance policy, or otherwise) of the amounts otherwise indemnifiable
hereunder.

         14. Binding Effect. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their respective
successors (including any direct or indirect successor by purchase, merger,
consolidation, or otherwise to all or substantially all of the business and/or
assets of the Company), assigns, spouses, heirs, and personal and legal
representatives. The Company shall require and cause any successor (whether
direct or indirect by purchase, merger, consolidation, or otherwise) to all,
substantially all, or a substantial part, of the business and/or assets of the
Company, by written agreement in form and substance satisfactory to Indemnitee,
expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform if no such
succession had taken place. The indemnification provided under this Agreement
shall continue as to Indemnitee for any action taken or not taken while serving
in an indemnified capacity

                                       28
<PAGE>

pertaining to an Indemnifiable Event even though he may have ceased to serve in
such capacity at the time of any Proceeding.

         15. Severability. If any provision (or portion thereof) of this
Agreement shall be held by a court of competent jurisdiction to be invalid,
void, or otherwise unenforceable, the remaining provisions shall remain
enforceable to the fullest extent permitted by law. Furthermore, to the fullest
extent possible, the provisions of this Agreement (including, without
limitation, each portion of this Agreement containing any provision held to be
invalid, void, or otherwise unenforceable, that is not itself invalid, void, or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, void, or unenforceable.

         16. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of The Netherlands.

         17. Notices. All notices, demands, and other communications required or
permitted hereunder shall be made in writing and shall be deemed to have been
duly given if delivered by hand, against receipt, or mailed, postage prepaid,
certified or registered mail, return receipt requested, and addressed to:

                                Managing Director
                                Madge Networks N.V.
                                Transpolis Schiphol Airport
                                Polaris Avenue 1
                                2132 JH
                                Hoofddorp
                                The Netherlands

with copies to:                 Legal Counsel
                                Madge Europe
                                Framewood Road
                                Wexham Slough
                                Birkshire SL3 6PJ

and to:                         Arnout Stroeve
                                Houthoff Buruma
                                Parnassusweg 126
                                1070 AM Amsterdam
                                The Netherlands

and to Indemnitee at:           Martin Malina
                                XXX

Notice of change of address shall be effective only when done in accordance with
this Section. All notices complying with this Section shall be deemed to have
been received on the date of delivery or on the third business day after
mailing.

                                       29
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have duly executed and
delivered this Agreement as of the day specified above.

                                        COMPANY: Madge Networks N.V., a
                                                 corporation organized under the
                                                 laws of The Netherlands

                                        Madge Networks N.V.

                                        By: /s/ Robert Madge
                                            ------------------------------------
                                        Name:         Robert Madge
                                        Title:          Chairman

                                        INDEMNITEE: /s/ Martin Malina
                                                    ----------------------------
                                                            Martin Malina

                                       30

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