Document:

Prepared by MERRILL CORPORATION www.edgaradvantage.com

QuickLinks
 -- Click here to rapidly navigate through this document

EXHIBIT 10.22  

 
 

INFOCUS CORPORATION
  2001 EXECUTIVE BONUS PLAN
  EXECUTIVE VICE PRESIDENT    
  

	POLICY:	 	It is InFocus Corporation's policy to provide Executive Vice Presidents the opportunity for increased compensation based upon InFocus Corporation's overall achievement of Corporate profit goals.
	
GUIDELINES:	
 	

1.	
 	

Adoption of Plan
	

 	
 	

 	
 	

This Executive Vice President Bonus Plan (the "Plan") was adopted by the Board of Directors of InFocus Corporation (the "Company") effective January 24, 2001.
	

 	
 	

2.	
 	

Purpose of Plan and Effective Date
	

 	
 	

 	
 	

The purpose of the Plan is to establish the terms and conditions under which the Company will pay Executive Vice President bonuses for the calendar year beginning January 1, 2001, and ending December 31, 2001.
	

 	
 	

 	
 	

Unless the Board of Directors specifically provides otherwise, all Executive Vice President bonuses will be awarded solely in accordance with this Plan.
	

 	
 	

3.	
 	

Eligibility
	

 	
 	

 	
 	

Eligibility is limited to Executive Vice Presidents of the Company.
	

 	
 	

 	
 	

Eligible Executive Vice Presidents must be in active pay status for an entire quarter to be paid profit sharing for that quarter.
	

 	
 	

 	
 	

In the event that an Executive Vice President is in the position for less than one year, a pro-rated bonus will be calculated based on number of months employed. No annual bonus will be paid if an Executive Vice President enters the position after
October 1, 2001. Executive Vice Presidents must be actively employed on the last day of the year to be eligible for any annual bonus amount.
	

 	
 	

4.	
 	

Plan Components
	

 	
 	

 	
 	

(a) Profit Sharing
	

 	
 	

 	
 	

The first component of the bonus plan shall be the payment of profit sharing, paid quarterly. The percentage to be paid (multiplied by the Executive Vice President's quarterly salary) shall be at the same rate as calculated for other employees in
accordance with the currently approved InFocus Corporation Profit Sharing Program. The payment to be made to the Executive Vice Presidents shall not reduce the amount to be paid to other employees, i.e., shall not come from the profit-sharing pool
calculated for other employees.
	

 	
 	

 	
 	

(b) Annual Bonus
	

 	
 	

 	
 	

The second component of the bonus plan shall be an annual bonus paid at year end based on: (1) the Company's 2001 financial performance (Profit Before Tax), and (2) the performance of the Executive Vice President against his/her individual
goals/objectives. This payout shall be calculated as follows:
	
	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

	

 	
 	

 	
 	

•	
 	

The targeted bonus shall be 55 percent of base salary and shall be calculated using the following formula:
	

 	
 	

 	
 	

 	
 	

Bonus = (70%C + 30%I ) (55%)
	

 	
 	

 	
 	

 	
 	

where:	
 	

 	
 	

 	
 	

 
	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

C = Corporate PBT performance (vs. Operating Plan) calculated by dividing actual 2001 Profit Before Tax (PBT) plus income/loss from joint venture activity by Operating Plan PBT plus planned income/loss from joint venture activity.
	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

I = Individual Performance Objectives/MBOs (versus 2001 Corporate goals) determined by the CEO, by comparing the individual Executive Vice President's performance against his/her Individual Performance Objective/MBOs.
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

NOTE: MBO's must be quantifiable and measurable. In addition, they must be submitted and approved by HR no later than March 30, 2001.
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

Other limitations/constraints regarding calculation of the bonus are as follows:
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

CORPORATE PORTION:
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

Minimum threshold of 75% of PBT or no payout of this portion
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

No cap on Corporate portion
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

An accelerator shall apply to above plan performance starting at 100% of plan. For every percent above 100%, 2.5% shall be multiplied by the Target Bonus Percentage.
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

INDIVIDUAL (MBO) PORTION:
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

Below Plan Thresholds:
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

Minimum threshold of 75% of MBOs or no payout of either portion
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

Minimum threshold of 50% Corporate PBT or no payout of the MBO portion
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

MBO portion reduced when Corporate PBT is between 50% and 75%
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

Above Plan Performance:
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

Cap of 130% on MBO portion
	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

>	
 	

No accelerator on MBO portion
	

 	
 	

5.	
 	

Payment of Executive Vice President Bonus
	

 	
 	

 	
 	

Payment of the Executive Vice President Bonus Plan will be based on audited year-end results, and will be distributed within 30 days after the audit has been completed.
	
	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 	
 	

 

	

 	
 	

6.	
 	

Discretion of the Board of Directors
	

 	
 	

 	
 	

Nothing in this Plan shall prohibit the Board of Directors from awarding a bonus to one or more Executive Vice Presidents in addition to the Executive Vice President Bonus awarded pursuant to this Plan. The Board of Directors reserves the right to
modify, change or rescind this policy at any time at its sole discretion as is required to meet the Company's objectives.

2001 Executive Bonus Plan

Executive Vice President 

QuickLinks

INFOCUS CORPORATION 2001 EXECUTIVE BONUS PLAN EXECUTIVE VICE PRESIDENTPrepared by MERRILL CORPORATION www.edgaradvantage.com

QuickLinks
 -- Click here to rapidly navigate through this document

EXHIBIT 10.24  

 
 

LEASE AGREEMENT
  
    BASIC LEASE INFORMATION    
  

    The following Basic Lease Information is hereby incorporated into and made a part of the Lease between Landlord and Tenant to which it is attached. Each
reference in the Lease to any of the Basic Lease Information shall mean the respective information set forth below, and such information shall be deemed incorporated as part of the terms provided
under the particular Lease Section pertaining to such information. In the event of any conflict between any Basic Lease Information and the Lease, the Basic Lease Information shall control. 

	1.	 	Premises:  That certain real property consisting of approximately twenty-six and eighty-three one-hundredths (26.83) acres, including the Building, as defined below, and all
other improvements thereon or to be constructed thereon by Landlord pursuant to EXHIBIT C (the "premises"). The above-described real property is herein referred to as the "Land" and more specifically set
forth in EXHIBIT A.
	

2.	
 	
Landlord:  GED-IFC, LLC, an Oregon limited liability company.
	

3.	
 	
Landlord's Address for Giving of Notices and Payment of Rent:
	

 	
 	

            GED-IFC, LLC

            % Gerding/Edlen Development Company

            4650 SW Macadam Avenue, Suite 220

            Portland, Oregon 97201

            ATTN: Mark Edlen or Kelly Saito
	

4.	
 	
Tenant:  InFocus Corporation, an Oregon corporation
	

5.	
 	
Tenant's Address for Giving of Notices:
	

 	
 	

            InFocus Corporation

            27700B SW Parkway Avenue

            Wilsonville, Oregon 97070

            ATTN: Tim Carlson
	

6.	
 	
Building:  The Building to be constructed on the Land which shall include four (4) floors and approximately 140,000 square feet as outlined on the floor plan of the
building attached hereto as EXHIBIT B ("Building"). (Section 1.2; EXHIBIT B)
	

7.	
 	
Parking:  All parking spaces on the Premises.
	

8.	
 	
Use of Premises:  General office use and technological research and development. (Section 2)
	

9.	
 	
Lease Document Issuance and Reference Date:  August 28, 2000
	

10.	
 	
Commencement Date:  Upon substantial completion (as defined in Section 30.6.9) of Landlord's Work (as defined in EXHIBIT C).
	

11.	
 	
Rent Commencement Date:  The earlier of (i) the Commencement Date, or (ii) November 15, 2001.
	

12.	
 	
Term:  One hundred twenty (120) months plus any partial month following the Commencement Date.
	
	
 	

 	
 	

 	

 

	

13.	
 	
Rent:  
	 
	 	            Months
	 	Annual Base Rent Amount
	 

	
 	
 	

            1* - 48	
 	

$1,974,000	

 
	

 	
 	

            49 - 96	
 	

$2,225,346	

 
	

 	
 	

            97 - 120	
 	

$2,508,695	

 
	

 	
 	
* plus any partial month at the beginning of the term.
	

 	
 	

The Base Rent referred to above is stated on an annual basis. Base Rent shall be payable in twelve equal monthly installments at the rate specified for the first full calendar month when Base Rent is payable. Tenant shall pay Landlord $164,500 to be
applied against the first full month's Rent upon execution of this Lease. (Section 1.5).
	

14.	
 	
Security Deposit:  None
	

15.	
 	
Brokers:  None
	

16.	
 	
Guarantors:  None

	LANDLORD	 	TENANT
	
GED-IFC, LLC, an Oregon limited liability company	
 	

INFOCUS CORPORATION, an Oregon corporation
	

By:	
 	

/s/ Mark Edlen	
 	

By:	
 	

/s/ John V. Harker
	 	 	
	 	 	 	

	Title:	 	Manager	 	Title:	 	Co-Chairman of the Board, President and CEO
	 	 	
	 	 	 	

	Date:	 	 	 	Date:	 	 
	 	 	
	 	 	 	

QuickLinks

LEASE AGREEMENT BASIC LEASE INFORMATION<PAGE>

--------------------------------------------------------------------------------

                              COMPLETEL EUROPE N.V.
                             2000 STOCK OPTION PLAN

                          AS AMENDED DECEMBER 20, 2000

--------------------------------------------------------------------------------

<PAGE>

INTRODUCTION

The following represents the stock option plan (the "Plan") of CompleTel Europe
N.V., a company incorporated under the laws of the Netherlands (the "Company"),
having its seat (STATUTAIRE ZETEL) at Amsterdam and its registered address at
Kruisweg 609, 2132 NA Hoofdorp, The Netherlands, registered with the Amsterdam
Chamber of Commerce under number 34108119 as adopted and approved by the
Supervisory Board and shareholders on December 10, 1999, and amended on December
20, 2000.

ARTICLE 1. - DEFINITIONS

For the purposes of this Plan,

         (i)      "AFFILIATED COMPANY" means (a) a company in which the Company
                  directly or indirectly owns a majority of the shares of stock
                  or other capital interest of that company, (b) a company that
                  directly or indirectly owns a majority of the shares of stock
                  or other capital interest of the Company, or (c) a company in
                  which CompleTel LLC, a limited liability company formed under
                  the laws of the State of Delaware, United States of America,
                  directly or indirectly owns 100% of the shares of stock or
                  other capital interest.

         (ii)     "BOARD OF MANAGEMENT" means the body that is appointed by the
                  Company's shareholders generally upon the nomination of the
                  Supervisory Board as provided in the Company's Articles of
                  Association as amended in accordance with applicable law from
                  time to time.

         (iii)    "EMPLOYEE" means any employee of the Company or any Group
                  Company or any member of the Board of Management in their
                  capacity as beneficiaries under the Plan.

         (iv)     "FAIR MARKET VALUE" means the closing price of the Company's
                  ordinary shares on the Paris Bourse, or the principal stock
                  exchange outside the United States on which the Shares are
                  traded, on the date immediately preceding the date on which
                  the Option is granted, as reported in the principal
                  consolidated transaction reporting system for the exchange, or
                  if no sale took place on such day, or if the market is closed
                  on such day, the closing price on the last day prior to the
                  date of grant on which a sale took place and the market was
                  open for the transaction of business; provided, that if the
                  ordinary Shares are not listed on a European stock exchange,
                  fair market value shall be determined as set forth above using
                  the closing price on Nasdaq; provided further, that the Option
                  Price of an Option granted to Employees that are residents of
                  France shall equal or exceed 80% of the average closing price
                  of a Share on the Paris Bourse for the 20 trading days
                  immediately preceding the date of grant; further provided,
                  that in no event shall the Option Price for an Option granted
                  to any Employee be lower than the price permitted by
                  applicable law on the date of grant. If the shares are not
                  traded on a stock exchange, Fair Market Value shall be
                  determined as provided in Article 8.

         (v)      "GROUP COMPANY" means the Company or one of its Affiliated
                  Companies.

         (vi)     "OPTION" means a right to subscribe for or purchase Shares
                  pursuant to this Plan.

                                                                          Page 1
<PAGE>

         (vii)    "OPTION DATE" means in relation to any Options, the date on
                  which the Options are, were or are to be granted.

         (viii)   "OPTION TERM" means the period during which an Option is
                  exercisable, which shall be established by the Board of
                  Management pursuant to Article 5.5.

         (ix)     "SHARES" means the ordinary shares in the capital of the
                  Company.

         (x)      "SECTION 16 EMPLOYEE" means an Employee, including Employees
                  who are members of the Board of Management, who are subject to
                  the rules promulgated under Section 16 of the United States
                  Securities Exchange Act of 1934, as amended.

         (xi)     "SUPERVISORY BOARD" means the body that is appointed by the
                  Company's shareholders as provided in the Company's Articles
                  of Association as amended in accordance with applicable law
                  from time to time.

ARTICLE 2. - GRANTING OF OPTIONS

         2.1 The Company may grant Options to Employees upon the approval of the
Board of Management. No Option shall be granted to an Employee unless the
Employee has commenced work with the Company or Affiliated Company, as the case
may be.

         2.2 The total number of Shares with respect to which Options may be
granted pursuant to this Plan shall be 18,919,960, Euro 0.10 nominal value,
each. Shares issued or issuable upon exercise of Options shall be applied to
reduce the maximum number of Shares available for use under the Plan. Shares
underlying expired, forfeited, or terminated and unexercised Options are
available for reissue for grant of Options under this Plan.

         2.3 In case any of the events mentioned in Article 4.2 occurs, the
Board of Management will adjust the maximum number of Shares under Article 2.2
accordingly, subject to any applicable regulatory approval.

         2.4 The Board of Management or the Supervisory Board, as the case may
be, shall determine from time to time the form or forms of the agreement with
Employees which shall evidence the particular provisions, terms, conditions,
rights and duties of the Company and Employee with respect to option grants
under the Plan (referred to in this Plan as an "Option Agreement") furnished by
the Company to the Employee. The Option Agreement shall include such terms and
conditions that are not inconsistent with the terms of this Plan as the Board of
Management or the Supervisory Board, as the case may be, may approve.

         2.5 If at any time the number of shares underlying any Option granted
under the Plan that are vested and exercisable includes a fractional share, the
number of shares as to which the Option shall actually be vested and exercisable
shall be rounded down to the next whole share. The Board of Management or the
Supervisory Board, as may be the case, in its sole discretion may from time to
time determine to issue fractional shares if permissable under applicable law.

                                                                          Page 2
<PAGE>

ARTICLE 3. - PLAN ADMINISTRATION

         3.1. Except as provided in Section 3.2, the Board of Management shall
have the discretion and authority to grant Options with such terms, which may be
different from the general terms set forth in this Plan OR Appendix to the Plan,
as the Board of Management determines to be necessary or appropriate in order to
comply with the laws of the country in which the Employee resides or is employed
or for whatever reason. The Board of Management, to the extent appropriate under
applicable law, may delegate its authority under this Plan to a subcommittee of
the Board of Management and such other individuals as the Board of Management
may appoint to serve on the subcommittee. The power and authority delegated to
the subcommittee shall be subject to such restrictions and conditions as the
Board of Management, in its sole discretion, may impose. The delegation shall be
as broad or as narrow as the Board of Management shall determine. However, if
the law of the country in which the Employee resides or works requires that
Options be granted by the Board of Management, then Options granted to Employees
living or working in that country shall be granted only by the Board of
Management and there shall be no delegation of authority by the Board of
Management with respect to such Options.

         3.2 To the extent required to comply with Rule 16b-3 ("Rule 16b-3")
promulgated by the United States Securities and Exchange Commission under
Section 16 of the Securities Exchange Act of 1934, as amended, the Supervisory
Board shall specifically approve each grant of an Option to a Section 16
Employee.

         3.3 The Board of Management, or the Supervisory Board, as the case may
be, may modify or amend the terms and conditions of any Options; may authorize
any officer of the Company to execute on behalf of the Company any instrument
required to effect the grant of an Option under the Plan previously approved by
the Board of Management or Supervisory Board; may designate from time to time a
brokerage or financial institution to process and administer the exercise of all
Options granted under the Plan; and may establish such other terms and
requirements of the Option not inconsistent with the Plan, and rules and
requirements for carrying out the purpose of the Plan as it deems proper and in
the best interests of the Company. No member of the Board of Management or
Supervisory Board, as the case may be, shall be liable for any action or
determination made in good faith. The determinations and interpretations of the
Board of Management or Supervisory Board, as the case may be, shall be binding
and conclusive for all purposes and on all persons.

ARTICLE 4. - OPTION PRICE

         4.1 The price to be paid to acquire the Shares ("the Option Price")
shall be at least equal to the Fair Market Value. Fair Market Value shall be
determined (a) in accordance with Article 1(iv) or Article 8, as the case may
be, or (b) if such laws are applicable to this Plan and are mandatory, under the
laws of the country in which the Employee to whom the Option is granted works or
resides.

         4.2      If after the Option date one of the following events occurs:

                  X        a split of the Shares in Shares with a lower value;
                  X        a repayment of capital on the Shares;
                  X        the issue of shares in the capital of the Company out
                           of the retained earnings or the capital surplus
                           account;

                                                                          Page 3
<PAGE>

                  -        a recapitalization, spinoff or other dilutive change
                           in the Company's capital structure;

then the Option Price and/or the number of the Shares with respect to which
Options have been granted will be adjusted if reasonably necessary, in such a
way that the intrinsic value of the Options immediately after the
above-mentioned occasions is equal to the intrinsic value of the Options
immediately before such occasion.

ARTICLE 5. - OPTION EXERCISE AND NON-TRANSFERABILITY

         5.1 Except as otherwise approved by the Board of Management or the
Supervisory Board, as the case may be, at the time an Option is granted or
thereafter, Options may only be exercised by the Employee, or if the Employee
shall become permanently disabled or has died, by the administrator of the
Employee's estate or his or her heirs (hereinafter jointly and severally
referred to as the "Legal Successors").

         5.2 Options may be exercised in full or in part.

         5.3 Options shall be exercised via notice provided by the Employee
which shall be in any manner and in any form authorized by the Company from time
to time, and paying in full, at the time the exercise notice is provided or at
such other time as the Board of Management may establish, the total exercise
price for the shares being purchased. Any such notice of exercise shall state
the number of Shares to be acquired pursuant to such exercise.

         At the time of exercise of an Option, the exercise price for the shares
to be purchased shall be paid by any of the following methods or any combination
of the following methods:

                  (A) in cash;

                  (B) by certified check, cashier's check or other check
         acceptable to the Company;

                  (C) at the election of the Employee and subject to acceptance
         by the Company, by selling and transferring to the Company a number of
         Shares then owned by the Employee at the Fair Market Value, as defined
         below, which equals the exercise price of the Shares to be purchased
         pursuant to the Option; provided however, that no Option may be
         exercised by the sale of Shares unless the Shares have been held by the
         Employee for more than six months and provided that the Company is able
         by applicable Dutch and United States law, and any other applicable
         indentures, agreements and covenants binding the company and its
         properties, to purchase the Shares. The Fair Market Value of any Shares
         delivered pursuant to this subsection (C) shall be the Fair Market
         Value as of the date the Option is exercised; the date the Option is
         exercised shall be the day of delivery of the certificates of the
         Shares used pursuant to this subsection (C).

                  (D) by delivering to the Company (I) a properly completed
         exercise notice, (II) irrevocable instructions to a broker to sell a
         sufficient number of the shares being exercised to cover the exercise
         price and to promptly deliver to the Company the amount of sales
         proceeds required to pay the exercise price and any required tax
         withholding relating to the exercise, and (III) such other
         documentation as the broker and the Board of Management shall require
         to effect

                                                                          Page 4
<PAGE>

         a same-day exercise and sale.

                  (E) by delivering to the Company (I) a properly completed
         exercise notice, (II) irrevocable instructions to a broker or other
         third party acceptable to the Company to hold the shares being
         exercised as collateral for a loan to the Employee of an amount
         sufficient to cover the exercise price and to promptly deliver to the
         Company the amount of loan proceeds required to pay the full amount of
         the exercise price and any related withholding taxes, and (III) any
         other documentation that the Company and the broker or other third
         party require to effect the transaction.

                  (F) such other consideration and method of payment for the
         issuance of shares to the extent permitted under applicable laws, rules
         and regulations and the Option Agreement.

         5.4 Except as otherwise approved by the Board of Management and
provided in the Option Agreement, an Option granted to an Employee shall not be
transferable by the Employee other than by will or the laws of descent and
distribution. An option granted to an Employee shall not be assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) and shall not
be subject to execution, attachment or similar process.

         5.5 At the time an Option is granted, the Board of Management or the
Supervisory Board, as the case may be, or, if required by the law of country in
which the Employee works or resides, the Company's shareholder shall determine
the length of the Option Term; provided however, that the Option Term must end,
in all cases, not more than ten years from the date the Option is granted. The
Option Agreement, if applicable, shall also set forth any installment or other
restrictions on exercise of the Option during such period, if any, as may be
determined by the Board of Management or the Supervisory Board, as the case may
be. Each Option shall vest and become exercisable and unconditional at such
times or upon such events, as determined by the Board of Management or the
Supervisory Board, as the case may be, and as specified in the Option Agreement
or in an Appendix to the Plan. An Option may be exercised only during the Option
Term, except as provided in Article 7, and at such times as it has become
exercisable and unconditional.

ARTICLE 6. - DELIVERY OF SHARES

         6.1 Promptly after the exercise of an Option and upon payment in full
of the Option Price, the Company will transfer the number of Shares in respect
of which the Option is exercised against payment in full of the Option Price.
However, the Company shall not be obligated to transfer any Shares unless the
Employee has made arrangements satisfactory to the Company to satisfy all
withholding requirements.

ARTICLE 7. - CONSEQUENCES OF TERMINATION OF EMPLOYMENT

         7.1 If the Employee is no longer employed by a Group Company because of
retirement in accordance with the Company's or Affiliated Company's retirement
policy, permanent disability or death, the unexercised Options (if any) will
expire one year after the date of such termination, or at the end of the Option
Term, whichever is earlier; it being understood that in the case of the death of
an Employee, the expiration shall never be earlier than 6 months after the date
of death. Such unexercised Options may

                                                                          Page 5
<PAGE>

be exercised only to the extent that they were vested, exercisable, and
unconditional on the date of termination of employment or the date of death, as
applicable.

         7.2 If the Employee is dismissed by the Company because of a so-called
"urgent reason" ("dringende redenen") under Dutch law or similar reason under
the laws of the jurisdiction in which the Employee is employed, or because of
documented and material non-performance by the Employee, then all Options shall
expire immediately and without notice.

         7.3 If the Employee is no longer employed within a Group Company for a
reason other than those referred to in Article 7.1 or 7.2 (or in case of a
dispute, it is determined that the Company's claim on the application of Article
7.2 was not justified), any unexercised Options will expire 30 days after the
termination of employment, or at the end of the Option Term, whichever is
earlier. Such unexercised Options may be exercised only to the extent that they
were vested, exercisable, and unconditional on the date of the termination of
employment.

         7.4 At the time an Option is granted, the Board of Management or the
Supervisory Board, as the case may be, may approve deviations from the
provisions under Article 7.

ARTICLE 8. - FAIR MARKET VALUE OF THE SHARES

         8.1 All sections of Article 8 will only apply if the Shares are not
listed on a stock exchange. If the Shares are listed on a stock exchange, the
definition of "Fair Market Value" in Article 1(iv) shall apply.

         8.2 Unless it is required under the laws of the country in which the
Employee to whom the Option is granted works or resides to determine Fair Market
Value by another method, the Fair Market Value as referred to in this Article
shall be determined by the Board of Management according to procedures
established by the Board of Management. It is anticipated that the procedures
will include the manner in which a professional advisor may be engaged by the
Board of Management in its sole discretion in order to verify the valuation and
the manner in which a disagreement between an Employee and the Company regarding
the Fair Market Value will be settled, including an objective mechanism
involving a professional advisor not involved in the first determination
verifying whether or not the determination of the Fair Market Value by the Board
of Management is reasonable.

         To avoid excessive administration, the Fair Market Value under this
Article 8 will be established no more frequently than once every six months
using the then current valuation methodology, and the most recent prior
valuation shall be deemed to be the Fair Market Value at the relevant date. If
there has been an event which in the sole discretion of the Board of Management
is likely to have a material effect on the Fair Market Value then a new
valuation may be carried out.

ARTICLE 9. - TAXES AND SOCIAL SECURITY PREMIUMS; WITHHOLDING

         9.1 In accordance with the laws of the jurisdiction in which the
Employee works or resides, the Company or any Affiliated Company shall be
entitled to withhold, and the Employee shall be obliged to pay, the amount of
any tax, social security contributions, or any other charges attributable to or
payable in connection with the grant, vesting or exercise of any Option.

                                                                          Page 6
<PAGE>

         9.2 The Board of Management may establish appropriate procedures to
provide for any such payment and to ensure that the Company or the Affiliated
Company receives advice concerning the occurrence of any event that may create,
or affect the timing or amount of, any obligation to pay or withhold any such
taxes or social security contributions or which may make available to the
Company or such Affiliated Company any tax deduction resulting from the
occurrence of such an event.

         9.3 The Company or any Affiliated Company may, by notice to the
Employee and subject to such rules as the Board of Management may adopt, require
that the Employee pay at the time of exercise of any Option an amount estimated
by the Company or any Affiliated Company to cover all or a portion of the tax
and/or employee's social security or other contributions payable in connection
with the grant, vesting or exercise of any Option. Alternatively, the Company or
any Affiliated Company may deduct from salary or other sums payable to the
Employee at any time after the exercise of an Option such amounts as may be
necessary to cover tax and/or employee's social security or other contributions
payable in connection with the grant, vesting or exercise of the Option to the
extent that such deductions are permitted under applicable law.

         9.4 Any tax or social security or other contributions payable by the
Employee or his Legal Successors with respect to the granting, maintaining or
the exercising of the Options or the sale of the Shares is for the account of
the Employee or his Legal Successors, respectively.

         9.5 If (part of) the Options are not exercised, any tax and/or social
security premiums paid will not be refunded or compensated by the Company.

         9.6 The Company's obligation to transfer any Shares upon exercise of an
Option are subject to the Employee's satisfaction of all withholding obligations
attributable to the grant, vesting, or exercise of any Option.

ARTICLE 10. - MERGER AND TAKE-OVER

         10.1 In case of change of control (or ownership) of 50 percent or more
of the Shares of the Company or merger of the Company with another enterprise to
which the Shares in the Company have to be surrendered in exchange for the issue
of other shares or in case of 50 percent or more of the Shares in the Company
are taken over (collectively, a "Change of Control"), the Company may make
provision for such disposition or adjustment of the Options as the Board of
Management determines, in its sole discretion, to be equitable.

         Furthermore, should an Employee be dismissed after a Change of Control,
other than for "urgent reasons" ("dringende redenen"), Article 7.3 shall not be
applicable to such Employee for any Options still held by such Employee, it also
being understood that the Employee concerned shall have a one year period from
the effective date of termination of employment (or the end of the Option Term,
whichever comes earlier) to exercise the Options concerned.

         10.2 In the case of a merger or other reorganization in which the
Company is not the surviving entity, the Board of Management may require holders
of Options to exchange their Options for new options under the new merged
entity's stock option plan, provided always that such new options will be at
least equivalent in value to the Options, or may provide for such other
adjustment to the Options that the Board of Management, in its sole discretion,
deems equitable.

                                                                          Page 7
<PAGE>

         10.3 In the case of any event described in section 10.1 or section
10.2, the Board of Management may, in its sole discretion, cause any or all
outstanding Options to become fully vested at the time or times designated by
the Board of Management.

ARTICLE 11. - EMPLOYMENT

         Neither the grant of the Options nor this Plan itself or any provision
therein shall be interpreted as an obligation of the Company or an Affiliated
Company to employ the Employee for a certain period of time or to guarantee him
a certain salary or position.

ARTICLE 12. - INSIDER TRADING RULES

         By accepting the Options, the Employee agrees to adhere to the
Company's insider trading policy, as may be amended from time to time. Employees
who may be deemed to be insiders further agree to adhere to any applicable
notification or other requirements, including without limitation the
notification requirements under Dutch law.

ARTICLE 13. - NOTICES

         13.1 Notices pursuant to this Plan to be submitted by the Company to
the Employee, shall be deemed to be addressed correctly if they have been sent
to the address of the Employee as known by the personnel department of the Group
Company concerned.

         13.2 Notices pursuant to this Plan to be submitted by the Employee to
the Company, other than Option exercise notices which shall be submitted in the
form and manner determined by the Board of Management from time to time, shall
be deemed to be addressed correctly if they have been sent to the address of the
Company as known with the Chamber of Commerce in Amsterdam, with a copy to the
Controller of the Company at Tour Egee, 9-11 Allee De L'Arche, 92671 Courbevoie
Cedex, France.

ARTICLE 14. - AMENDMENT AND TERMINATION

         The Board of Management may at any time terminate, and at any time and
from time to time may amend or modify, the Plan. No amendment, modification or
termination of the Plan shall in any manner adversely affect any Options,
theretofore granted under the Plan, without the consent of the Employee holding
such Options.

ARTICLE 15. - CHOICE OF LAW AND JURISDICTION

         This Plan will be governed by Netherlands law. All disputes arising in
connection with this Plan, except for disputes arising under article 8.2, shall
be brought before the competent court in the district of Amsterdam.

                                                                          Page 8
<PAGE>
                                   APPENDIX A

          GRANTS TO EMPLOYEES RESIDENT IN FRANCE (FRENCH OPTION GRANTS)

Options granted to Employees who are resident in France shall be granted under
the rules in this Appendix. Such Options shall be designated "French Options" in
the applicable option grant approval and, or option agreement. Except as set
forth in this Appendix, Options granted under this Appendix shall be deemed to
have been granted under the Plan as if the same had been incorporated into this
Appendix.

The following provisions shall apply in addition to or in substitution for, as
the case may be, the provisions contained in the body of the Plan.

Article 2.1 of the Plan shall be amended by insertion of the following at the
end of the section:

         **1  "Options may be granted only to Employees under this Appendix
              provided, however, that directors who are also Employees of the
              Company or Affiliated Company may be granted Options."

Article 4.2 of the Plan shall be deleted and replaced by the following:

         "If after the Option date one of the following events occurs:

         A reduction of share capital necessary under French law when the
         Company's equity is reduced to less than half the share capital;
         a capital increase by capitalization of retained earnings, profits, or
         issue premium;
         a capital increase in cash;
         a free distribution of shares and/or retained earnings, either in cash
         or in securities;
         the issue of convertible bonds or exchangeable bonds,
         or bonds with subscription rights attached;
         the issue of preferred shares without voting rights;
         the Company is listed on a regulated market and has purchased its own
         Shares at a purchase price that is higher than the list price of the
         Shares; then the Option Price will be adjusted in compliance with
         French law and regulation; moreover, in order to permit the Employee to
         invest, at the time of the exercise of the Options, an amount that is
         equal to the amount that was contemplated at the time when he accepted
         the Option, the number of Shares with respect to which the Option has
         been granted will be adjusted in a manner whereby the total amount of
         the purchase by the Employee of such Shares will remain the same."

 Article 5:

         Article 5.1 of the Plan shall be amended by the insertion of the
following at the end of the section:

                  In the case of the disability of a French Employee, options
                  may only be exercised by the beneficiary and not by their
                  heirs or administrator.

Article 5.5 of the Plan shall be amended by the insertion of the following:

                                                                          Page 9
<PAGE>

         "An Option may be exercised for a period of ten years after the date it
         is granted, to the extent the Option has become unconditional and
         exercisable."

RESTRICTION ON SALE:

Article 6.3 of the Plan shall be amended by the insertion of the following:

         "The Shares acquired pursuant to the exercise of an Option shall not be
         transferred or disposed of in any manner prior to the fifth (5th )
         anniversary following the allocation of Options."

VESTING AND EXERCISABILITY:

The Option shall become vested and exercisable beginning on the second
anniversary of the date of grant (allocation) if the Employee is employed on
each vesting date and has been employed continuously by a Group Company since
the date of grant (allocation), according to the following schedule:

<TABLE>
<CAPTION>

        ANNIVERSARY OF         PERCENTAGE OF SHARES
        DATE OF GRANT          BECOMING VESTED AND
                               EXERCISABLE ON EACH DATE
        ---------------------- ------------------------------------
<S>                            <C>
        First                  0%
        ---------------------- ------------------------------------
        Second                 60%
        ---------------------- ------------------------------------
        Third                  80%
        ---------------------- ------------------------------------
        Fourth                 100%
        ---------------------- ------------------------------------
        Fifth                  100%
        ---------------------- ------------------------------------
</TABLE>

An Option shall not be vested and exercisable as to any shares as to which the
vesting requirement specified above has not been satisfied, regardless of the
circumstances under which the Employee's employment shall be terminated. Except
as provided in Article 7 of the Plan, the number of shares as to which the
Option may be exercised shall be cumulative, so that once the Option shall
become vested and exercisable as to any shares, it shall continue to be
exercisable and exercisable as to such shares, until expiration or termination
of the Option. If at any time the number of shares that are vested and
exercisable includes a fractional share, the number of shares as to which the
Option shall actually be vested and exercisable shall be rounded down to the
next whole share.

                                                                         Page 10
<PAGE>

                                   APPENDIX B

            GRANTS TO EMPLOYEES RESIDENT IN GERMANY (GERMAN OPTIONS)

**2 Options granted to Employees who are resident in Germany shall be granted
under the rules in this Appendix.

**3 Such Options shall be designated "German Options" in the applicable Option
Agreement.

Except as set forth in this Appendix, Options granted under this Appendix shall
be deemed to have been granted under the Plan as if the same had been
incorporated into this Appendix.

The following provisions shall apply in addition to or in substitution for, as
the case may be, the provisions contained in the body of the Plan.

VESTING AND EXERCISABILITY:

An Option shall not be vested or exercisable for one year after the date of
grant (allocation) of the Option. The Option shall become vested and exercisable
beginning on the first anniversary of the date of grant (allocation) if the
Employee is employed on each vesting date and has been employed continuously by
a Group Company since the date of grant (allocation), according to the following
schedule:

<TABLE>
<CAPTION>

        ANNIVERSARY OF         PERCENTAGE OF SHARES
        DATE OF GRANT          BECOMING VESTED AND
                               EXERCISABLE ON EACH DATE
        ---------------------- ------------------------------------
<S>                            <C>
        First                  25%
        ---------------------- ------------------------------------
        Second                 25%
        ---------------------- ------------------------------------
        Third                  25%
        ---------------------- ------------------------------------
        Fourth                 25%
        ---------------------- ------------------------------------
</TABLE>

An Option shall not be vested and exercisable as to any shares as to which the
vesting requirement specified above has not been satisfied, regardless of the
circumstances under which the Employee's employment shall be terminated. Except
as provided in Article 7 of the Plan, the number of shares as to which the
Option may be exercised shall be cumulative, so that once the Option shall
become vested and exercisable as to any shares, it shall continue to be
exercisable and exercisable as to such shares, until expiration or termination
of the Option. If at any time the number of shares that are vested and
exercisable includes a fractional share, the number of shares as to which the
Option shall actually be vested and exercisable shall be rounded down to the
next whole share.

                                                                         Page 11
<PAGE>

                                   APPENDIX C

        GRANTS TO EMPLOYEES RESIDENT IN THE UNITED KINGDOM (U.K. OPTIONS)
        -----------------------------------------------------------------

NOTE: This Appendix applies to grants under a plan that has been approved by the
UK Inland Revenue under Schedule 9 Income and Corporation Taxes Act 1988 ("Taxes
Act").

When the plan has been so approved, Options granted to Employees who are
resident in the United Kingdom shall be granted under the rules in this Appendix
to the extent that this is permissible under this Appendix.

**4 Such Options shall be designated "Approved U.K. Options" in the applicable
Option Agreement.

Except as set forth in this Appendix, Approved U.K. Options granted under this
Appendix shall be deemed to have been granted under the Plan as if the same had
been incorporated into this Appendix.

The following provisions shall apply in addition to or in substitution for, as
the case may be, the provisions contained in the body of the Plan.

ARTICLE 1 - DEFINITIONS

         For the purpose of this Appendix, all expressions defined in the Plan
         shall have the same meaning in this Appendix, save that:

         "EMPLOYEE" means a person who is:

                  (a)      a full-time director of the Company or a Group
                           Company who is obliged to devote to the performance
                           of the duties of his office or employment with that
                           and any other Group Company not less than 25 hours
                           per week (excluding meal breaks); or

                  (b)      an employee of the Company or a Group Company; and

                  (c)      in either case, not precluded from participation in
                           this Appendix by Paragraph 8 of Schedule 9 (material
                           interest in a close company);

         "FAIR MARKET VALUE" means, as of any day:

                  (a)      If and so long as the Shares are listed on The London
                           Stock Exchange or the New York Stock Exchange, the
                           closing price per Share as reported by a reputable
                           and recognized reporting service as designated by the
                           Board of Management or the Supervisory Board, or, if
                           there shall have no such price so reported on that
                           date, the price on the last preceding date on which
                           such a price was so reported; and

                  (b)      If the Shares are not so listed, the Fair Market
                           Value (within the meaning of Part VIII of the United
                           Kingdom's Taxation of Chargeable Gains Act 1992) of
                           Shares,

                                                                         Page 12
<PAGE>

                           as agreed in advance, for the purposes of this
                           Appendix, with the Shares Valuation Division of the
                           Inland Revenue on that day;

         "SCHEDULE 9" means Schedule 9 of the Taxes Act;

         "SHARES" means ordinary shares of common stock in the capital of the
         Company which satisfy the requirements of Paragraphs 10 to 14 of
         Schedule 9;

ARTICLE 2 - GRANTING OF OPTIONS

1.       Article 2.3 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix only to the extent that such adjustment is approved
         in advance by the Inland Revenue under Schedule 9.

2.       An Employee shall not be granted an Approved U.K. Option under this
         Appendix that would cause the Fair Market Value of the Shares subject
         to the Approved U.K. Option to exceed the amount permitted under
         paragraph 28(1) of Schedule 9 from time to time. When determining
         whether this amount has been reached, the Fair Market Value of Shares
         subject to the Approved U.K. Option that is to be granted to the
         Employee shall be included as well as the Fair Market Value of Shares
         that the Employee may acquire upon exercising Approved U.K. Options
         granted under this Appendix or any other discretionary Inland Revenue
         approved Scheme established by the Company or by an Affiliated Company.

ARTICLE 3 - PLAN ADMINISTRATION

         Article 3.3 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it read as follows:

                  "The Board of Management or the Supervisory Board, as the case
may be, may:

                  (i)      modify or amend the terms and conditions of any
                           options provided that such modifications or
                           amendments have been approved in advance by the
                           Inland Revenue under Schedule 9;

                  (ii)     institute an option exchange program in the event
                           that Article 10.2 below applies;

                  (iii)    authorize any officer of the Company to execute on
                           behalf of the Company any instrument required to
                           effect the grant of an Approved U.K. Option under
                           this Appendix previously approved by the Board of
                           Management or the Supervisory Board;

                  (iv)     designate from time to time a brokerage or financial
                           institution to process and administer the exercise of
                           all Approved U.K. Options granted under this
                           Appendix; and

                  (v)      establish such other terms and requirements of the
                           Approved U.K. Option not

                                                                         Page 13
<PAGE>

                           inconsistent with the Plan, this Appendix and
                           Schedule 9, and rules and requirements for carrying
                           out the purpose of the Plan and this Appendix as it
                           deems proper and in the best interests of the
                           Company.

                           No member of the Board of Management or the
                           Supervisory Board, as the case may be, shall be
                           liable for any action or determination made in good
                           faith. The determinations and interpretations of the
                           Board of Management or the Supervisory Board, as the
                           case may be, shall be binding and conclusive for all
                           purposes and on all persons."

ARTICLE 4 - OPTION PRICE

1.       Article 4.1 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it read as follows:

         "The price to be paid to acquire the Shares (the "Option Price") shall
         be no less than the Fair Market Value of the Shares."

2.       Article 4.2 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it read as follows:

         "If, after the Option date, a variation of capital of the Company
         occurs, then the Option Price and/or the number of Shares with respect
         to which the Options have been granted, will be adjusted if reasonably
         necessary, in such a way that the intrinsic value of the Options
         immediately after such variation of capital is equal to the intrinsic
         value of the Options immediately before such variation, save that no
         adjustment shall be made under this Article 4.2 to an Approved U.K.
         Option at a time when this Appendix is approved by the Inland Revenue
         under Schedule 9 without the prior approval of the Inland Revenue. The
         Company shall notify the Inland Revenue of any actions which mean that
         this Appendix may no longer be so approved."

ARTICLE 5 - EXERCISE AND NON-TRANSFERABILITY

1.       Article 5.3 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it read as follows:

         "Approved U.K. Options shall be exercised via notice provided by the
         Employee in any manner and in any form authorized by the Company from
         time to time, and paying in full, at the time the exercise notice is
         provided the total exercise price for the Shares being acquired. Any
         such notice of exercise shall state the number of Shares to be acquired
         pursuant to such exercise.

         At the time of exercise of an Approved U.K. Option, the exercise price
         for the Shares to be acquired shall be paid by any of the following
         methods or any combination of the following methods:

         (a)      in cash, or

         (b)      by certified check, cashier's check or other check acceptable
                  to the Company; or

         (c)      by delivering to the Company (I) a properly completed exercise
                  notice, (II) irrevocable instructions to a broker or other
                  third party acceptable to the Company to hold the Shares

                                                                         Page 14
<PAGE>

                  being exercised as collateral for a loan to the Employee of an
                  amount sufficient to cover the exercise price and to promptly
                  deliver to the Company the amount of loan proceeds required to
                  pay the full amount of the exercise price, and (III) any other
                  documentation that the Company and the broker or other third
                  party shall require to effect the transaction.

2.       Article 5.4 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it read as follows:

         "An Approved U.K. Option granted under this Appendix shall not be
         transferable by the Employee other than to his personal
         representatives."

3.       Article 5.5 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it included after "other restrictions on
         exercise of the Option during such period, if any, as may be determined
         by the Board of Management or the Supervisory Board, as the case may
         be," the words, "provided that any conditions of exercise shall be
         objective and stated in writing at the time an Option is granted."

4.       Article 5 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it included an Article 5.6 as follows:

         "No Approved U.K. Option may be exercised at any time by a person who
         is prohibited from doing so by virtue of Paragraph 8 of Schedule 9."

5.       An Approved U.K. Option shall vest according to the following schedule:

<TABLE>
<CAPTION>

        ANNIVERSARY OF         PERCENTAGE OF SHARES
        DATE OF GRANT          BECOMING VESTED AND
                               EXERCISABLE ON EACH DATE
        ---------------------- ------------------------------------
<S>                            <C>
        First                  25%
        ---------------------- ------------------------------------
        Second                 25%
        ---------------------- ------------------------------------
        Third                  25%
        ---------------------- ------------------------------------
        Fourth                 25%
        ---------------------- ------------------------------------
</TABLE>

ARTICLE 6 - DELIVERY OF SHARES AND RELATED MATTERS

1.       The Plan shall apply to Approved U.K. Options granted under this
         Appendix as if it included Article 6.2 as follows:

         "Within thirty days after the Approved U.K. Option has been validly
         exercised by any person, the Company shall allot or transfer, or
         procure the allotment or transfer, of the number of Shares in respect
         of which the Approved U.K. Option has been exercised.

         Any Shares so allotted or transferred shall rank equally with other
         Shares of the same class for the time being in issue, save as regards
         any rights attaching to such Shares by reference to a record date prior
         to the date of allotment or transfer."

ARTICLE 7 - CONSEQUENCES OF TERMINATION OF EMPLOYMENT

                                                                         Page 15
<PAGE>

1.       Article 7.3 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it read as follows:

         "If the Employee is no longer employed within a Group Company for a
         reason other than those referred to in Articles 7.1 or 7.2 (or, in the
         case of a dispute, it is determined that the Company's claim on the
         application of Article 7.2 was not justified), any unexercised Approved
         U.K. Options will expire on the later of:

         (a)      six months from the termination of employment; or

         (b)      42 months from the date of grant of the Approved U.K. Option;
                  or

         (c)      42 months from the date on which the Employee last exercised
                  an option in circumstances in which section 185 of the Taxes
                  Act applied,

                  provided that such Approved U.K. Options may be exercised only
                  to the extent that they were vested, exercisable and
                  unconditional on the date of the termination of the
                  employment."

ARTICLE 8 - FAIR MARKET VALUE OF THE SHARES

         Article 8 shall not apply to Approved U.K. Options granted under this
Appendix.

ARTICLE 9 - TAXES AND SOCIAL SECURITY PREMIUMS:  WITHHOLDING

         Article 9 shall not apply to Approved U.K. Options granted under this
Appendix.

ARTICLE 10 - MERGER AND TAKE-OVER

1.       Article 10.1 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if read as follows:

         "In case of a change of control (or ownership) of 50 percent or more of
         the Shares of the Company or merger of the Company with another
         enterprise to which the Shares in the Company have to be surrendered in
         exchange for the issue of other shares or in case of 50 percent or more
         of the Shares in the Company are taken over (collectively, a "Change in
         Control"), Approved U.K. Options may be exercised within a period of
         six months from the date of such Change in Control and, if not so
         exercised, shall lapse."

2.       Articles 10.2 and 10.3 of the Plan shall not apply to Approved U.K.
         Options granted under this Appendix.

3.       Article 10 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it included Article 10.2 as follows:

         "If any company (the "acquiring company") obtains control of the
Company as a result of making:

         (a)      a general offer to acquire the whole of the common stock of
                  the Company which is made

                                                                         Page 16
<PAGE>

                  on a condition such that if it is satisfied the person making
                  the offer will have control of the Company; or

         (b)      a general offer to acquire all the shares in the Company which
                  are of the same class of the Shares which may be acquired by
                  the exercise of Approved U.K. Options,

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

         The new option shall not be regarded for the purposes of this Article
         10.2 as equivalent to the old option unless the conditions set out in
         paragraph 15(3) of Schedule 9 are satisfied, but so that the provisions
         of this Appendix shall for this purpose be construed as if:

         (i)      the new option were an Approved U.K. Option granted under this
                  Appendix at the same time as the old option; and

         (ii)     except for the purposes of the definition of "Affiliated
                  Company" and "Group Company" in Article 1, the reference to
                  CompleTel Europe NV in the Plan were a reference to the
                  different company mentioned in this Article 10.2."

ARTICLE 14 - AMENDMENT AND TERMINATION

         Article 14 of the Plan shall apply to Approved U.K. Options granted
         under this Appendix as if it also included the following:

         "If an amendment is made to this Appendix or to the terms of an
         Approved U.K. Option at a time when this Appendix is approved by the
         Inland Revenue under Schedule 9, the approval will not thereafter have
         effect until the Inland Revenue have so approved it. The Company shall
         notify the Inland Revenue of any actions which mean that this Appendix
         may no longer be so approved."

                                                                         Page 17
<PAGE>

                                   APPENDIX E

         GRANTS TO EMPLOYEES RESIDENT IN THE UNITED STATES (US OPTIONS)
         --------------------------------------------------------------

Options granted to Employees who are resident in the United States shall be
granted under the rules in this Appendix.

Such Options shall be designated "US Options" in the applicable Option
Agreement.

Except as set forth in this Appendix, Options granted under this Appendix shall
be deemed to have been granted under the Plan as if the same had been
incorporated into this Appendix.

The following provisions shall apply in addition to or in substitution for, as
the case may be, the provisions contained in the body of the Plan.

VESTING AND EXERCISABILITY:

An Option shall not be vested or exercisable for one year after the date of
grant (allocation) of the Option. The Option shall become vested and exercisable
beginning on the first anniversary of the date of grant (allocation) if the
Employee is employed on each vesting date and has been employed continuously by
a Group Company since the date of grant (allocation), according to the schedule
determined by the Board of Management at the time the Option is granted, or if
not so determined, according to the following schedule:

<TABLE>
<CAPTION>

        ANNIVERSARY OF         PERCENTAGE OF SHARES
        DATE OF GRANT          BECOMING VESTED AND
                               EXERCISABLE ON EACH DATE
        ---------------------- ------------------------------------
<S>                            <C>
        First                  25%
        ---------------------- ------------------------------------
        Second                 25%
        ---------------------- ------------------------------------
        Third                  25%
        ---------------------- ------------------------------------
        Fourth                 25%
        ---------------------- ------------------------------------
</TABLE>

**5      An Option shall not be vested and exercisable as to any shares as to
         which the vesting requirement specified above has not been satisfied,
         regardless of the circumstances under which the Employee's employment
         shall be terminated. Except as provided in Article 7 of the Plan, the
         number of shares as to which the Option may be exercised shall be
         cumulative, so that once the Option shall become vested and exercisable
         as to any shares, it shall continue to be exercisable and exercisable
         as to such shares, until expiration or termination of the Option. If at
         any time the number of shares that are vested and exercisable includes
         a fractional share, the number of shares as to which the Option shall
         actually be vested and exercisable shall be rounded down to the next
         whole share.

                                                                         Page 18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]