Document:

EXHIBIT 4.2
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                          GENESYS STOCK INCENTIVE PLAN

I.       ESTABLISHMENT OF THE PLAN.

         Genesys S.A. hereby establishes the Genesys Stock Incentive Plan
(hereinafter called the "Plan"), subject to the terms and conditions hereinafter
stated.

II.      PURPOSES OF THE PLAN.

         The purposes of the Plan are:

         To encourage stock ownership by Employees of the Corporation so that
they will have a proprietary interest in Genesys;

         To provide an incentive for such Employees to expand and improve the
growth and prosperity of the Corporation; and

         To assist the Corporation in attracting and retaining Employees.

III.     DEFINITIONS.

         Unless the context clearly indicates otherwise, the following terms,
when used in the Plan, shall have the meanings set forth in this Article III.
Wherever used in the Plan, words in the masculine gender shall be deemed to
refer to females as well as to males; words in the singular number shall be
deemed to refer also to the plural number; and references to a statute or
statutory provision shall be construed as if they referred also to that
provision (or to a successor provision of similar import) as currently in
effect, as amended or as reenacted.

            (a) "ADR" means a Genesys American Depositary Receipt, representing
one ADS.

            (b) "ADS" means a Genesys American Depositary Share, representing
one half of one share of Common Stock, subject to adjustment pursuant to Article
X.

            (c) "Affiliate" means, with respect to any Person, any other Person
that, directly or indirectly through one or more intermediaries, controls, is
controlled by, or is under common control with the first Person.

            (d) "Board" means the Board of Directors of Genesys.

            (e) "Cause" means, unless otherwise defined in the applicable Option
Agreement, the Grantee's Termination by reason of (i) his continued or willful
failure substantially to perform his duties for the Corporation (other than any
such failure due to the Grantee's physical or mental illness), (ii) his willful
and serious misconduct in connection with the performance of his duties for the
Corporation that has caused or is reasonably expected to result in material
injury to the Corporation, (iii) the Grantee's conviction of, or entering a plea
of guilty or nolo contendere to, a crime that constitutes a felony or a crime
involving moral turpitude, (iv) his fraudulent or dishonest conduct or (v) his
material breach of any of his obligations or covenants under any written
policies of the Corporation or any written agreement between such Grantee and
the Corporation; provided that if the Grantee is a party to an effective
employment agreement on the date of determination and such employment agreement
contains a different definition of Cause, the definition of Cause contained in
such employment agreement shall be substituted for the definition set forth
above for all purposes hereunder.

            (f) "Change in Control" means the first to occur after the Effective
Date of any of the following events:

                    (i) the acquisition by any person, entity or "group" (as
          defined in section 13(d) of the Exchange Act) (other than (x) Genesys,
          any of its Affiliates or any of their respective Affiliates or (y) any
          employee benefit plan of Genesys, any of its Affiliates or any of
          their respective Affiliates) through one transaction or a series of
          related transactions of beneficial ownership of equity securities of
          Genesys representing 50% or more of the combined voting power of all
          then outstanding equity securities of Genesys that may be cast for the
          election of directors of Genesys;

                    (ii) the approval by Genesys's stockholders of a merger or
          consolidation of Genesys with or into another entity as a result of
          which Persons who were stockholders of Genesys immediately prior to
          such merger or consolidation, do not, immediately thereafter, own,
          directly or indirectly, securities representing more than 50% of the
          combined voting power of all then outstanding securities entitled to
          vote generally in the election of directors of the merged or
          consolidated company;

                    (iii) the approval by Genesys' stockholders of a liquidation
          or dissolution of Genesys, other than a dissolution occurring upon a
          merger or consolidation of Genesys or a liquidation of Genesys into
          any of its Affiliates or any of their respective Affiliates; or

                    (iv) the sale, transfer or other disposition of all or
          substantially all of the assets of Genesys through one transaction or
          a series of related transactions to one or more Persons that are not,
          immediately prior to such sale, transfer or other disposition,
          Affiliates of Genesys or any of their respective Affiliates.

            (g) "Code" means the Internal Revenue Code of 1986, as amended.

            (h) "Committee" means the committee of the Board designated by the
Board to administer the Plan or, if there is no such committee, the Board;
provided, that from and after such time as Genesys ceases to qualify as a
"foreign private issuer" within the meaning of Rule 3b-4 of the Exchange Act,
the Committee shall consist of two or more persons, at least two of whom qualify
as (i) a "non-employee director" within the meaning of Rule 16b-3 of the
Exchange Act; and (ii) an "outside director" within the meaning of United States
Treasury Regulation Section 1.162-27(e)(3) under the Code, unless otherwise
determined by the Board.

            (i) "Common Stock" means shares of Genesys' common stock, no par
value, subject to adjustment pursuant to Article X.

            (j) "Corporation" means Genesys and, at the time of reference, its
Affiliates.

            (k) "Director" means a member of the Board.

            (l) "Disability" means, unless otherwise defined in the applicable
Option Agreement, a condition entitling a Grantee to benefits under the
long-term disability plan maintained by the Corporation in which he is a
participant and, in the absence of any such plan, shall mean a mental or
physical condition of the Grantee rendering him unable to perform his duties for
the Corporation for a period of six (6) consecutive months or for 180 days
within any consecutive 365-day period and which is reasonably expected to
continue indefinitely; provided that if, as of the date of determination, the
Grantee is a party to an effective employment agreement with a different
definition of "Disability" or any derivation of such term, the definition of
"Disability" (or its derivation) contained in such employment agreement shall be
substituted for the definition set forth above for all purposes hereunder. A
Grantee's employment or services shall be deemed to have Terminated as a result
of Disability on the date as of which he is first entitled to receive disability
benefits under such policy or, in the absence of a policy, the date of the
determination that the Grantee has such a condition.

            (m) "Effective Date" means _________, 2001, the date of adoption of
the Plan by the Board.

            (n) "Employee" means any employee of the Corporation, including an
employee who is also an officer or Director of the Corporation, but excluding
any employees of the Corporation primarily employed in, or residents of, France.

            (o) "Exchange Act" means the U.S. Securities Exchange Act of 1934,
as amended.

            (p) "Fair Market Value" of an ADS shall mean, as of any date of
determination, (i) with respect to Options that are not Incentive Stock Options,
the average of the closing price or the closing bid and ask price, as the case
may be, of an ADS over the 20 trading days immediately preceding such date of
determination or (ii) with respect to Incentive Stock Options, the greater of
(x) 95% of the average of the closing price or the closing bid and ask price, as
the case may be, of an ADS over the 20 trading days immediately preceding such
date of determination and (y) the closing price or closing bid and ask price, as
the case may be, on such date of determination, in any case, (A) as reported on
the principal securities exchange on which ADSs are then listed or admitted to
trading, (B) if the ADSs are not then listed or admitted to trading upon an
established stock exchange, as reported on the National Association of
Securities Dealers Automated Quotation System, or (C) if not so reported, as
furnished by any member of the National Association of Securities Dealers, Inc.
selected by the Committee. The closing price or closing bid and ask price, as
the case may be, of an ADS as of any such date on which the applicable exchange
or inter-dealer quotation system through which trading in ADSs is traded is
closed shall be the closing price or closing bid and ask price, as the case may
be, determined pursuant to the preceding sentence as of the immediately
preceding date on which such exchange or system is open for trading.

            (q) "Family Members" means a Grantee's spouse, children or
grandchildren.

            (r) "Genesys" means Genesys S.A., or any successor thereto,
including any entity that the Board determines has succeeded Genesys.

            (s) "Grant Date" shall mean, with respect to an Option Award, the
effective date of the grant of such Option Award.

            (t) "Grantee" means an Employee to whom an Option is granted under
the Plan.

            (u) "Incentive Stock Option" means an Option that is intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code and which is identified as an Incentive Stock Option in the Option
Agreement by which it is evidenced.

            (v) "Normal Expiration Date" means, with respect to an Option Award,
the eighth anniversary of the Grant Date of such award or such other date as may
be specified in the Option Agreement evidencing such award.

            (w) "Option" means a right granted to a Grantee to purchase two (2)
ADSs under the Plan, provided, however, that, if on the effective date of the
exercise of a Vested Option the Grantee is a Restricted Participant, such
Grantee shall receive one (1) share of Common Stock in lieu of two (2) ADSs, in
accordance with paragraph (e) of Article VIII herein.

            (x) "Option Award" means, collectively, the Options granted to a
Grantee as of a particular Grant Date as evidenced by an Option Agreement.

            (y) "Option Agreement" means the written agreement entered into by
Genesys and a Grantee evidencing an Option Award hereunder and setting forth the
terms and conditions applicable thereto.

            (z) "Plan" means the Genesys Stock Incentive Plan, as set forth
herein and as amended from time to time, together with all Schedules hereto.

            (aa) "Person" means any natural person, firm, partnership, limited
liability company, association, corporation, company, trust, business trust,
governmental authority or other entity.

            (bb) "Restricted Participant" means any Grantee, who on the
effective date of the exercise of a Vested Option is, or at any time within the
three-month period immediately preceding such effective date was, an officer,
director or other affiliate of, or a person performing similar functions for,
the Corporation who is not permitted to deposit any securities with The Bank of
New York (as depositary) under the Deposit Agreement with Genesys, dated
February 12, 2001.

            (cc) "Retirement" means, unless otherwise defined in the applicable
Option Agreement, the Termination of a Grantee, other than by reason of
Disability or death or by the Corporation for Cause, at or after his attainment
of age 65; provided that if, as of the date of determination, the Grantee is a
party to an effective employment agreement with a different definition of
"Retirement", the definition of "Retirement" contained in such employment
agreement shall be substituted for the definition set forth above for all
purposes hereunder.

            (dd) "Securities Act" means the U.S. Securities Act of 1933, as
amended.

            (ee) "Schedule" shall mean each schedule attached to, and forming a
part of, the Plan that will be governed by the laws of any jurisdiction other
than the United States or any state thereof and that sets forth certain
additional or alternative terms and conditions that will apply to Options
granted hereunder.

            (ff) "Subsidiary" means a subsidiary of the Corporation that meets
the definition of a "subsidiary corporation" in Section 424(f) of the Code.

            (gg) "Termination" shall mean, with respect to a Grantee, the
occurrence of any event following which such Grantee is not an Employee.

            (hh) "Vested Option" means, collectively and with respect to an
Option Award, the Options covered by such award that have vested in accordance
with Paragraph (b) of Article VIII hereof.

IV.      ADMINISTRATION OF THE PLAN.

         The Plan shall be administered by the Committee. Members of the
Committee shall be appointed by and shall serve at the discretion of the Board.

         Except as otherwise provided in this paragraph, the Committee shall
have discretionary authority to exercise all of the powers granted to it by the
provisions of the Plan and to interpret and construe any provision of the Plan
and the terms of any Option issued under it and any Option Agreement. Subject to
the express provisions and limitations of the Plan, the Committee may adopt such
rules, regulations, and procedures as it deems advisable for the conduct of its
affairs, and may appoint one of its members to be its chairman and any person,
whether or not a member, to be its secretary or agent.

         Decisions of the Committee shall be final and binding on all parties
and all decisions, determinations, selections and other actions permitted or
required to be taken or made by the Committee with respect to the Plan or any
Option granted hereunder or Option Agreement shall be subject to the absolute
discretion of the Committee. No member of the Committee or the Board shall be
liable to any Grantee for any action, omission, or determination relating to the
Plan and each member of the Committee and the Board shall be indemnified by
Genesys to the fullest extent permitted by law with respect to any action taken
or determination made in good faith in connection with the Plan. The Board shall
act by vote or written consent of a majority of its members.

V.       CAPITAL STOCK SUBJECT TO AWARDS.

            (a) Shares Available Under the Plan.

         The aggregate number of shares of Common Stock issued, including shares
issued in the form of ADSs (represented by ADRs) pursuant to Option Awards
granted under the Plan shall not exceed 550,000 shares of Common Stock, which
number is subject to adjustment pursuant to Article X. Shares of Common Stock
issued, including shares issued in the form of ADSs (represented by ADRs)
pursuant to Options granted hereunder shall be provided from shares in Genesys'
treasury or from shares authorized but unissued. In the event that any
outstanding Option Award expires, terminates or is cancelled for any reason
without the issuance of all shares of Common Stock (whether or not represented
by ADRs) covered by such Option Award, such unissued shares of Common Stock
subject to such Option Award shall again be available for grant under the Plan.

            (b) Limitations On Awards.

         During the term of the Plan, no Employee may be granted Options to
purchase more than an aggregate of 550,000 shares of Common Stock (whether or
not represented by ADRs), which number is subject to adjustment pursuant to
Article X.

VI.      ELIGIBILITY.

         Those Employees of the Corporation selected by the Committee shall be
eligible to receive Option Awards pursuant to the Plan from time to time, as
determined by the Committee.

VII.     DESIGNATION OF GRANTEES.

         Subject to the provisions of the Plan, the Committee may determine from
time to time which of those eligible Employees will be granted an Option Award
under the Plan, and how many Options will be covered by any Option Award granted
to such Employee. Subject to paragraph (e) of Article VIII herein, each Option
shall represent a right to purchase two (2) ADS. In making such determinations,
the Committee shall take into account the duties and responsibilities of each
Employee, his or her present and potential contributions to the growth and
success of the Corporation, and such other factors as the Committee shall deem
consistent with the purposes of the Plan. The Committee shall not be precluded
from granting Option Awards to any eligible Employee solely because such
Employee has previously received a grant of an Option Award under the Plan.

VIII.    TERMS OF OPTIONS.

         Option Awards granted under the Plan shall be evidenced by an Option
Agreement substantially in the form attached hereto as Exhibit A or, subject to
Article IV hereof, in such other form as the Committee shall approve. Each
Option shall be clearly identified in the Option Agreement evidencing its grant
as a non-qualified stock option that is not intended to qualify as an "incentive
stock option" within the meaning of Section 422 of the Code or as an Incentive
Stock Option and shall be subject to the following terms and conditions, any
applicable terms and conditions set forth in a Schedule and such other terms and
conditions set forth in the Option Agreement that are not inconsistent with the
terms of the Plan, as the Committee shall determine:

            (a) Number of Shares and Option Exercise Price.

         The purchase price for each ADS subject to an Option shall be
determined by the Committee and set forth in the applicable Option Agreement,
provided that, with respect to an Incentive Stock Option, the purchase price for
an ADS shall not be less than the Fair Market Value of an ADS on the Grant Date
of such Option and, with respect to Options that are not Incentive Stock
Options, the purchase price for an ADS shall not be less than 95% of the Fair
Market Value of an ADS on the Grant Date.

            (b) Limitations on Exercise of Options.

         Unless otherwise provided in the applicable Option Agreement, Options
covered by an Option Award shall become vested and exercisable in installments
as follows: (x) with respect to 10% of the Options covered thereby on the first
anniversary of the Grant Date, (y) with respect to an additional 7.5% of the
Options covered thereby on the last day of each of the eleven calendar quarters
immediately following the first anniversary of the Grant Date and (z) with
respect to the remaining 7.5% of the Options covered thereby on the fourth
anniversary of the Grant Date; provided in the case of each such installment,
that (I) the Grantee remains in the continuous employment of the Corporation
from the Grant Date through the applicable vesting date, (II) no Option shall be
exercisable after the Normal Expiration Date and (III) each Option shall be
subject to earlier termination, expiration or cancellation as provided in the
Plan or in the applicable Option Agreement.

         At the time an Option is granted, the Committee may provide in the
applicable Option Agreement or, at any time thereafter the Committee may
stipulate that, if a Change in Control occurs, the limitations set forth above
in this paragraph (b) shall lapse with respect to such Option and that such
Option shall become immediately vested and exercisable in full.

            (c) Duration of Option.

            (i) Upon a Grantee's Termination for any reason, (A) all of the
Options covered by Option Awards then held by such Grantee that are not Vested
Options as of the date of Termination shall expire immediately upon such
Termination and (B) all of the Options covered by Option Awards then held by
such Grantee that are Vested Options shall remain exercisable following such
Termination until the earliest of the dates specified in the applicable clauses
(1) through (5) below and any such Vested Options that are not exercised prior
to such earliest date shall expire immediately upon such earliest date:

            1. if such Termination is for Cause, the commencement of business on
the date notice of Termination is communicated to the Grantee;

            2. if such Termination is for any reason other than Cause,
Retirement, death or Disability, the 90th day after the effective date of
Termination;

            3. if such Termination is due to the Grantee's Disability or
Retirement, the Normal Expiration Date, provided, however, that, with respect to
Incentive Stock Options, (x) if such Termination is due to the Grantee's
Disability, such Vested Options shall remain exercisable until the first
anniversary of such Disability and (y) if such Termination is due to the
Grantee's Retirement, such Vested Options shall remain exercisable until the
90th day after the effective date of such Termination;

            4. if such Termination is due to the Grantee's death, the six-month
anniversary of such death; and

            5. in all cases, the Normal Expiration Date for each such Vested
Option.

         Notwithstanding the foregoing provisions, the Committee may specify in
the Option Agreement on or after the Grant Date a different expiration date or
period of exercise for any Option granted hereunder and may provide for the
continued vesting of any Options following a Grantee's Termination, and such
expiration date or period and provision for continued vesting shall supersede
the foregoing.

            (d) Nonassignability of Options.

         No Options granted under the Plan may be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated, except that Options may be
transferred (i) by will or by the laws of descent and distribution or (ii) with
the prior written consent of the Committee, to (A) a trust or trusts for the
exclusive benefit of the Grantee's Family Members or (B) a partnership or
limited liability company for the exclusive benefit of such Family Members or of
which such Family Members and/or trusts are the sole partners or members, as the
case may be, provided that the deceased Grantee's beneficiary or the
representative of the Grantee's estate or the Grantee's permitted transferee
shall acknowledge and agree in writing, in a form reasonably acceptable to
Genesys, to be bound by the provisions of the Plan and any applicable Option
Agreement as if such beneficiary or the estate were the Grantee. During a
Grantee's lifetime, Options shall be exercisable only by such Grantee or his
permitted transferees as described above in this paragraph (c). Notwithstanding
the foregoing, an Incentive Stock Option shall not be sold, transferred,
pledged, assigned or otherwise alienated or hypothecated otherwise than by will
or by the laws of descent and distribution.

            (e) Manner of Exercise.

         Notwithstanding any other provision in the Plan or any applicable
Option Agreement, if on the effective date of the exercise of a Vested Option
the Grantee is a Restricted Participant, such Grantee shall receive one (1)
share of Common Stock in lieu of two (2) ADSs in respect of each such exercised
Vested Option.

         Subject to the terms and conditions set forth in the Plan and the
applicable Option Agreement, Vested Options under an Option Award may be
exercised at one time or from time to time, except that each partial exercise of
an Option Award shall be for at least 200 ADSs or 100 shares of Common Stock, as
the case may be, or, if fewer than 200 ADSs or 100 shares remain outstanding
under the Option Award, for all the remaining shares of ADSs or shares of Common
Stock. Vested Options shall be exercised by delivering written notice to
Genesys' principal office, to the attention of Genesys' Chief Human Resources
Officer, no less than three business days in advance of the effective date of
the proposed exercise. Such notice shall specify the number of Vested Options
that are being exercised, the effective date of the proposed exercise, the
aggregate exercise price due in connection with such proposed exercise, the
proposed form of payment and shall be signed by the Grantee. The Grantee may
withdraw such notice at any time prior to the close of business on the business
day immediately preceding the effective date of the proposed exercise.

            (f) Payment for ADSs or Shares of Common Stock.

         Payment for ADSs or shares of Common Stock, as the case may be,
purchased upon the exercise of a Vested Option shall be made in cash or by check
or wire transfer on or prior to the effective date of such exercise.

         Subject to the Grantee's payment of withholding taxes pursuant to the
following Paragraph (g), an ADR (representing the ADS or ADSs) or a share of
Common Stock, as the case may be, purchased upon the exercise of one or more
Vested Options shall be issued in the name of such Grantee (or, if applicable,
the estate or permitted transferee, etc.) and delivered to the Grantee (or, if
applicable, the estate or permitted transferee, etc.) as soon as practicable
following the effective date on which such Vested Option or Options are
exercised. The shares of Common Stock issued, including shares issued in the
form of an ADS, pursuant to the Plan pursuant to the exercise of a Vested Option
shall be fully paid and nonassessable.

            (g) Payment of Withholding Taxes.

         Payment in full of any federal, state, local or foreign taxes of any
kind required by law to be withheld with respect to the exercise of a Vested
Option shall be made to the Corporation in cash or by check or wire transfer on
or prior to the effective date of the exercise of such Vested Option.

            (h) Voting and Dividend Rights.

         No Person shall have any voting or dividend rights or any other rights
of a stockholder with respect to an ADS or a share of Common Stock (including
any share of Common Stock underlying an ADS) covered by an Option before such
Person exercises the Option with respect to such ADS or Common Stock and the ADR
representing such ADS or the Common Stock is issued to such person.

            (i) Certain Terms Applicable to Incentive Stock Options.

         The aggregate Fair Market Value of ADSs with respect to which Incentive
Stock Options granted under the Plan (together with any such options granted
under any other stock option plan of the Corporation or any Subsidiary thereof)
are exercisable for the first time by a Grantee during any calendar year shall
not exceed $100,000. Such Fair Market Value shall be determined as of the date
on which each such Incentive Stock Option is granted. In the event that such
aggregate Fair Market Value exceeds $100,000, then Incentive Stock Options
granted hereunder to such Grantee shall, to the extent of such excess and in the
order in which they were granted, automatically be deemed not to be Incentive
Stock Options, but all other terms and provisions of such Incentive Stock
Options shall remain unchanged.

         No Incentive Stock Option may be granted to an individual if, at the
time of the proposed grant, such individual owns stock possessing more than ten
percent of the total combined voting power of all classes of stock of Genesys or
any of its Subsidiaries, unless (i) the exercise price per ADS covered by such
Incentive Stock Option is at least one hundred and ten percent of the Fair
Market Value of an ADS at the time such Incentive Stock Option is granted and
(ii) such Incentive Stock Option is not exercisable after the expiration of five
years after the date such Incentive Stock Option is granted.

IX.      COMPLIANCE WITH LAW AND OTHER CONDITIONS.

            (a) Restrictions on Exercise of Options.

         Genesys shall not be obligated to effect the registration pursuant to
the Securities Act of any Common Stock or ADSs to be issued hereunder or to
effect similar compliance under any state laws. Notwithstanding anything herein
to the contrary, Genesys shall not be obligated to cause to be issued or
delivered any ADRs representing ADSs or shares of Common Stock pursuant to the
Plan unless and until Genesys is advised by its legal counsel that the issuance
and delivery of such ADRs or shares is in compliance with all applicable laws,
regulations of governmental authority and the requirements of any securities
exchange on which shares of Common Stock or ADSs are traded. The Committee may
require, as a condition to the issuance and delivery of ADRs representing ADSs
or shares of Common Stock pursuant to the terms hereof, that the recipient of
such ADRs or shares make such covenants, agreements and representations, and
that such ADRs or shares bear such legends, as the Committee deems necessary or
desirable.
         The exercise of any Option granted hereunder shall only be effective at
such time as counsel to Genesys shall have determined that the issuance and
delivery of ADRs or shares of Common Stock pursuant to such exercise is in
compliance with all applicable laws, regulations of governmental authority and
the requirements of any securities exchange on which shares of Common Stock or
ADSs are traded. Genesys may, in its sole discretion, defer the effectiveness of
any exercise of an Option granted hereunder to allow the issuance of ADRs or
Common Stock pursuant thereto to be made pursuant to registration or an
exemption from registration or other methods for compliance available under
federal or state securities laws. Genesys shall inform the Grantee in writing of
its decision to defer the effectiveness of the exercise of an Option granted
hereunder. During the period that the effectiveness of the exercise of an Option
has been deferred, the Grantee may, by written notice, withdraw such exercise
and obtain the refund of any amount paid with respect thereto.

            (b) Restrictions on Resale of Unregistered Shares.

         If the shares of Common Stock or ADSs that have been sold to a Grantee
pursuant to the terms of the Plan are not registered under the Securities Act of
1933, as amended, pursuant to an effective registration statement, such Grantee
may be required, if the Committee shall deem it advisable, to agree in writing
(i) that any shares of Common Stock or ADSs acquired by such Grantee pursuant to
the Plan will not be sold except pursuant to an effective registration statement
under the Securities Act or pursuant to an exemption from registration under the
Securities Act, and (ii) that such Grantee is acquiring such ADSs or shares for
his own account and not with a view to the distribution thereof.

X.       ADJUSTMENTS.

            (a) Adjustments in Capitalization. In the event of any change in the
number, class or type of shares of Common Stock outstanding, the number, class
or type of securities represented by an ADS or other change in the
capitalization of Genesys by reason of any stock dividend or split,
recapitalization, merger, consolidation, reorganization, combination or exchange
of shares or similar event or transaction (each, an "Adjustment Event"), the
Committee may make such adjustments as it determines are appropriate to (i) the
maximum aggregate number of shares of Common Stock and/or the class or type of
securities with respect to which Options may be granted under the Plan, (ii) the
maximum number of Options and/or the class or type of securities covered by such
Options that may be granted under the Plan to any individual during any twelve
month period, (iii) the number of ADSs and/or the number, class or type of
securities covered by then outstanding Option Awards and the per share exercise
price for such securities under such Option Awards, (iv) the number of ADSs
represented by one ADR and (v) the number of shares of Common Stock represented
by on ADS.

         In addition, in connection with an Adjustment Event, the Committee may
provide for the conversion of each Option outstanding immediately prior to such
event (whether or not then vested or exercisable) into an equivalent option, on
the same terms and conditions, with respect to some or all of the property for
which the outstanding shares of the class of stock underlying such Option is
exchanged in connection with such event and, incident thereto, make such
adjustments in the exercise price and/or the number of securities or amount or
type of property subject to such converted option as it determines.

         Except as expressly provided in the Plan or an Option Agreement, no
Grantee shall have any rights by reason of any Adjustment Event or by reason of
(i) any subdivision or consolidation of shares of stock of any class, (ii) the
payment of any dividend or any increase or decrease in the number of shares of
stock of any class or (iii) any dissolution, liquidation, merger or
consolidation of Genesys or any other corporation.

            (b) Change in Control. In the event of a Change in Control, the
Committee may provide that each outstanding Option shall become immediately
vested and exercisable, unless such Option is converted into or otherwise
exchanged for an equivalent option, on the same terms and conditions, with
respect to some or all of the securities or other property for which the
outstanding shares of the class of stock underlying such Option is exchanged in
connection with the Change in Control and, incident thereto, adjusted with
respect to the exercise price and/or the number of shares or amount or type of
securities or other property subject to such converted option as the Committee
determines.

XI.      MISCELLANEOUS PROVISIONS.

            (a) No Right to Receive Award.

         Nothing in the Plan shall be construed to give any Employee any right
to receive an Option Award under the Plan or any Grantee to receive additional
Option Awards under the Plan.

            (b) Expenses of Plan.

         The expenses of the Plan shall be borne by Genesys.

            (c) Conversion.

         For Genesys accounting purposes, the purchase price for an Option will
be converted at the U.S. dollar/Euro exchange rate existing on the day
immediately preceding the Grant Date of such Option.

XII.     AMENDMENT, SUSPENSION, OR TERMINATION.

            (a) Amendment.

         The Plan may be amended at any time and from time to time by the Board,
but no amendment that increases the aggregate number of shares of Common Stock
that may be granted pursuant to the Plan or the aggregate number of Options
permitted to be granted to any Grantee during the term of the Plan as set forth
in Section V(b) hereof, that enlarges the class of individuals entitled to
receive Option Awards under the Plan or that extends the period during which
Option Awards may be granted under the Plan shall be effective unless and until
the same is approved, at a meeting held to take such action at which a quorum is
present, by the affirmative vote of the holders of a majority of the shares of
Common Stock of Genesys present in person or by proxy and entitled to vote.
Without the written consent of a Grantee, no amendment of the Plan shall
adversely affect any right of such Grantee with respect to any then outstanding
Option Award theretofore granted to him or to her.

            (b) Right of Board to Suspend or Terminate Plan.

         The Board may at any time suspend or terminate the Plan. No Option
Awards may be granted during any suspension of the Plan or after the Plan has
been terminated.

            (c) Termination of Plan.

         The Plan shall terminate upon the earlier of the following dates:

                    (i) On the date of termination specified in a resolution of
          the Board, or

                    (ii) On a date three years from the date on which the Plan
          is approved by the Board.

         Except as otherwise provided herein, the termination of the Plan shall
not affect any then outstanding Option Awards previously granted. After the Plan
terminates, the function of the Committee will be limited to supervising the
administration of Option Awards previously granted.

XIII.    GOVERNING LAW.

         The Plan and all Option Awards made thereunder shall be governed by the
laws of the State of New York without reference to principles of conflict of
laws which would require application of the law of another jurisdiction.

XIV.     ADOPTION BY BOARD.

         The Plan shall become effective upon its adoption by the Board.

<PAGE>
Exhibit A

                                  NON-QUALIFIED
                          STOCK OPTION AGREEMENT- U.S.

                  STOCK OPTION AGREEMENT, dated as of ______________, 2001, by
and between Genesys, S.A. ("Genesys"), and the grantee, an Employee of the
Corporation, whose name appears on the signature page hereof (the "Grantee").

                              W I T N E S S E T H:
                               - - - - - - - - - -

                  WHEREAS, Genesys has adopted the Genesys Stock Incentive Plan
(the "Plan") to encourage stock ownership by certain Employees of the
Corporation and to provide incentives for such Employees to improve the growth
and profitability of the Corporation;

                  WHEREAS, subject to the terms of the Plan, the Plan provides
for the grant to participants in the Plan of stock options to purchase ADSs and
the Board has approved the grant to the Grantee of the number of non-qualified
options to purchase ADSs set forth on the signature page hereof on the terms and
conditions stated herein;

                  WHEREAS, the Grantee and Genesys desire to enter into an
agreement to evidence and confirm the grant of such stock options on the terms
and conditions set forth herein and;

                  WHEREAS, all capitalized terms used herein and not defined
herein shall have the meanings assigned to them in the Plan.

                  NOW, THEREFORE, to evidence the stock options so granted, and
to set forth the terms and conditions governing such stock options, Genesys and
the Grantee hereby agree as follows:

                  1. Certain Definitions. As used in this Agreement, the
following terms shall have the following meanings:

                  (a) "Covered Options" shall have the meaning set forth in
Section 4(b) hereof.

                  (b) "Exercise Date" shall have the meaning set forth in
Section 5 hereof.

                  (c) "Exercise Price" shall have the meaning set forth in
Section 5 hereof.

                  (d) "Exercise Shares" shall have the meaning set forth in
Section 5 hereof.

                  (e) "Grant Date" shall mean the date hereof, which is the date
on which the Options are granted to the Grantee.

                  (f) "Grantee" shall have the meaning set forth in the
introductory paragraph hereto.

                  (g) "Option Award" shall mean, collectively, the Options
granted to the Grantee pursuant to this Agreement.

                  (h) "Option" shall mean the right granted to the Grantee
pursuant to this Agreement to purchase ADSs, subject to the terms and conditions
hereof. The number of Options granted to the Grantee pursuant to this Agreement
is set forth on the signature page hereof. An Option can only be exercised in
full and, accordingly, an Option cannot be exercised for less than two (2) ADSs,
provided, however, that if on the Exercise Date of an Option the Grantee is a
Restricted Participant, the Grantee shall receive one (1) share of Common Stock
in respect of such Option, in lieu of two (2) ADSs, in accordance with paragraph
(e) of Article VIII herein and Section 5(c) herein.

                  (i) "Option Price" shall mean, with respect to each Option,
the exercise price specified in Section 2(b) hereof at which the Grantee may
purchase two (2) ADSs.

                  (j) "Rule 144" shall mean Rule 144 promulgated under the
Securities Act.

                  2. Grant of Options.

                  (a) Confirmation of Grant. Genesys hereby evidences and
confirms its grant to the Grantee, effective as of the date hereof, of the
Option Award. The Options are not intended to be incentive stock options under
the U.S. Internal Revenue Code of 1986, as amended. This Agreement is
subordinate to, and the terms and conditions of the Options granted hereunder
are subject to, the terms and conditions of the Plan. If there is any
inconsistency between the terms hereof and the terms of the Plan, the terms of
the Plan shall govern.

                  (b) Option Price. With respect to each Option, the Option
Price shall be $ _______.

                  3. Exercisability. The Option Award shall become exercisable
in installments as follows: (x) with respect to 10% of the Options covered
thereby on the first anniversary of the Grant Date and (y) with respect to an
additional 7.5% of the Options covered thereby on the last day of each of the
eleven calendar quarters immediately following the first anniversary of the
Grant Date and (z) with respect to the remaining 7.5% of the Options covered
thereby on the fourth anniversary of the Grant Date; provided in the case of
each such installment, that (I) the Grantee remains in the continuous employment
of the Corporation from the Grant Date through the applicable vesting date, (II)
no Option shall be exercisable after the Normal Expiration Date and (III) each
Option shall be subject to earlier termination, expiration or cancellation as
provided in the Plan or in the applicable Option Agreement.

                  4. Termination of Options.

                  (a) Normal Expiration Date. Subject to the terms of the Plan
and Section 4(b) herein, the Options shall terminate and be canceled on the
Normal Expiration Date.

                  (b) Early Termination. In the event of a Termination of the
Grantee for any reason prior to the Normal Expiration Date, any Options held by
the Grantee as of the effective date of such Termination that have not become
exercisable in accordance with Section 3 hereof or the terms of the Plan on or
prior to such effective date shall automatically terminate and be canceled
immediately upon such Termination, unless otherwise provided below. All Options
held by the Grantee as of the effective date of such Termination that have
become exercisable in accordance with Section 3 hereof or the terms of the Plan
on or prior to such effective date (such Options, the "Covered Options") shall
remain exercisable for whichever of the following periods is applicable, and if
not exercised within such period, shall automatically terminate and be canceled
upon the expiration of such period: (i) upon a Termination by reason of
Grantee's Disability or Retirement, the Covered Options shall remain exercisable
until the Normal Expiration Date, (ii) upon a Termination as a result of death,
if the Grantee has not fully exercised his Covered Options, his personal
representative or those persons who receive any Covered Options by bequest or
inheritance, shall have the right, during the period ending on the earlier of
the six-month anniversary of the date of the Grantee's death and the Normal
Expiration Date to exercise such Covered Options, and (iii) upon a Termination
for any reason other than (A) the Grantee's death, Disability or Retirement or
(B) a Termination for Cause, the Covered Options shall remain exercisable until
the earliest to occur of (x) the ninetieth (90th) day after the Grantee's
Termination, and (y) the Normal Expiration Date. Notwithstanding anything else
contained in this Agreement, in the event of a Grantee's Termination for Cause,
all Options (whether or not then vested or exercisable) shall automatically
terminate and be canceled immediately upon such Termination. Nothing in this
Agreement shall be deemed to confer on the Grantee any right to continue in the
employ of the Corporation or to interfere with or limit in any way the right of
the Corporation or any Affiliate to Terminate the Grantee at any time.

                  5. Manner of Exercise. (a) To the extent that any outstanding
Options shall have become and remain vested and exercisable as provided in
Sections 3 and 4 and subject to such reasonable administrative regulations as
the Board may have adopted, such Options may be exercised by notice to Genesys'
Chief Human Resources Officer, in writing no less than 3 business days prior to
the date as of which the Grantee will so exercise the Options (the "Exercise
Date"), specifying the number of Options being exercised (the "Exercise
Options"), the effective date of the proposed exercise, the proposed form of
payment and the aggregate Option Price for such Exercise Options. On or before
the Exercise Date, the Grantee shall deliver to Genesys full payment for the
Exercise Options by check or wire transfer, or in immediately available funds in
an amount equal to the product of the number of Exercise Options, multiplied by
the Option Price (collectively, the "Exercise Price") and (ii) subject to
Section 5(b) and Section 5(c), Genesys shall issue the ADR representing the ADS
or ADSs purchased upon exercise in the name of the Grantee as soon as
practicable following the Exercise Date. Genesys may require the Grantee to
furnish or execute such other documents as Genesys, shall reasonably deem
necessary (i) to evidence such exercise, (ii) to determine whether registration
is then required under the Securities Act and (iii) to comply with or satisfy
the requirements of the Securities Act, applicable state or non-U.S. securities
law or any other applicable law.

                  (b) Notwithstanding anything herein to the contrary, Genesys
may, in lieu of delivering ADRs representing the ADSs covered by the Exercise
Options to the Grantee, return to the Grantee the Exercise Price tendered for
the Exercise Options and pay to the Grantee an additional amount equal to the
excess of (i) the Fair Market Value, as of the determination date, of such ADSs
over (ii) the Exercise Price.

                  (c) Notwithstanding anything herein to the contrary, if on the
Exercise Date of an Option the Grantee is a Restricted Participant, the Grantee
shall receive one (1) share of Common Stock in lieu of two (2) ADSs in respect
of each exercised Option.

                  6. No Rights as Stockholder. The Grantee shall have no voting
or other rights as a holder of ADSs or shares of Common Stock of Genesys covered
by the Options until the exercise of the Options and the issuance of a
certificate or certificates to the Grantee for the ADR representing such ADSs or
for shares of Common Stock. No adjustment shall be made for dividends or other
rights for which the record date is prior to the issuance of such certificate or
certificates.

                  7. Miscellaneous.

                  (a) Notices. All Notices and other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been given if delivered personally or sent by certified or
express mail, return receipt requested, postage prepaid, or by any recognized
international equivalent of such delivery, to Genesys or the Grantee, as the
case may be, at the following addresses or to such other address as the
Corporation or the Grantee, as the case may be, shall specify by notice to the
others:

                  (i)      if to Genesys, to it at:

                           954 Avenue Jean-Mermoz
                           34000 Montpellier, France

                           Attn:  Chief of Human Resources

                  (ii)    if to the Grantee, to the Grantee at the address set
forth on the signature page hereof.

All such notices and communications shall be deemed to have been received on the
date of delivery if delivered personally or on the third business day after the
mailing thereof, provided that the party giving such notice or communication
shall have attempted to telephone the party or parties to which notice is being
given during regular business hours on or before the day such notice or
communication is being sent, to advise such party or parties that such notice is
being sent. Copies if any notice or other communication given under this
Agreement shall also be given to:

                           Cleary, Gottlieb, Steen & Hamilton
                           1 Liberty Plaza
                           New York, NY  10006
                           Attn: Deborah E. Kurtzberg

                  (b) Binding Effect; Benefits. This Agreement shall be binding
upon and inure to the benefit of the parties to this Agreement and their
respective successors and assigns. Nothing in this Agreement, express or
implied, is intended or shall be construed to give any person other than the
parties to this Agreement or their respective successors or assigns any legal or
equitable right, remedy or claim under or in respect of any agreement or any
provision contained herein.

                  (c) Waiver; Amendment.

                    (i) Waiver. Any party hereto or beneficiary hereof may by
          written notice to the other parties (A) extend the time for the
          performance of any of the obligations or other actions of the other
          parties under this Agreement, (B) waive compliance with any of the
          conditions or covenants of the other parties contained in this
          Agreement and (C) waive or modify performance of any of the
          obligations of the other parties under this Agreement. Except as
          provided in the preceding sentence, no action taken pursuant to this
          Agreement, including, without limitation, any investigation by or on
          behalf of any party or beneficiary, shall be deemed to constitute a
          waiver by the party or beneficiary taking such action of compliance
          with any representations, warranties, covenants or agreements
          contained herein. The waiver by any party hereto or beneficiary hereof
          of a breach of any provision of this Agreement shall not operate or be
          construed as a waiver of any preceding or succeeding breach and no
          failure by a party or beneficiary to exercise any right or privilege
          hereunder shall be deemed a waiver of such party's or beneficiary's
          rights or privileges hereunder or shall be deemed a waiver or such
          party's or beneficiary's rights to exercise the same at any subsequent
          time or times hereunder.

                    (ii) Amendment. This Agreement may not be amended, modified
          or supplemented orally, but only by a written instrument executed by
          the Grantee and Genesys.

                  (d) Assignability. Neither this Agreement nor any right,
remedy, obligation or liability arising hereunder or by reason hereof shall be
assignable by Genesys or the Grantee without the prior written consent of the
other parties.

                  (e) Incorporation of Plan. All terms and provisions of the
Plan are incorporated herein and made part hereof as if state herein. If an
provision hereof and of the Plan shall be in conflict, the terms of the Plan
shall govern. (f) Applicable Law. The Plan and all awards made thereunder shall
be governed by the laws of the State of New York without reference to principles
of conflict of laws which would require application of the law of another
jurisdiction.

                  (g) Section and Other Headings, etc. The section and other
headings contained in this Agreement are for reference purposes only and shall
not affect the meaning or interpretation of this Agreement.

                  (h) Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall constitute one and the same instrument.

<PAGE>

                  IN WITNESS WHEREOF, Genesys and the Grantee have executed this
Agreement as of the date first above written.

                                        GENESYS S.A.

                                        By:
                                             -----------------------------------
                                             Name:
                                             Title:

                                        THE GRANTEE:

                                        By:
                                             -----------------------------------

                                        Address of the Grantee:

Number of Options granted to the Grantee pursuant to this Agreement:

------------<Page>

                                                                    Exhibit 10.1

                          Dated as of January 31, 2001

Dear Mr. Fernando J. Espuelas:

            Reference is made to the letter agreement dated as of December 28,
2000 (the "Existing Agreement"), between you and StarMedia Network, Inc.
(sometimes referred to herein as the "Company", "we", "us" or "our"), with
respect to a $1,000,000 line of credit. We have agreed to amend the Existing
Agreement in various respects, including, but not limited to, increasing the
line of credit as described below. Therefore, the Existing Agreement shall, as
of the date hereof, be amended and restated in its entirety and superseded by
this letter. Accordingly, we are pleased to confirm that, subject to the terms
and conditions set forth below, we are granting to you a line of credit (the
"Line of Credit") for the making of loans, the proceeds of which shall be used
for a purpose other than the purpose, whether immediate, incidental, or
ultimate, of buying or carrying "margin stock", as such term is defined in
Regulation U of the Board of Governors of the Federal Reserve System in a
maximum aggregate principal amount not to exceed $4,000,000, which amount does
not exceed the Market Value (as hereinafter defined) as of the date hereof of
the shares of common stock of the Company pledged as collateral under section 4
of this letter, such Line of Credit to be available until the third anniversary
of the date of this letter, unless sooner terminated pursuant to section 6 or
section 10 of this letter.

            1. Borrowings. You may make a borrowing from time to time under the
Line of Credit by delivering a signed written request for payment in the form of
Exhibit A hereto to us at 75 Varick Street, New York, New York 10013, Attention:
Justin Macedonia, or to such

<Page>
                                                                               2

other address or other person as we may hereafter specify to you in writing,
together with the Form G-3 specified in such Exhibit. The date requested for
disbursement of a borrowing must be a business day (a "business day" is a day on
which we are open for business and that is not a Saturday, Sunday or other day
on which commercial banks in New York City are authorized or required by law to
remain closed). If your request for payment is received by us at least two
business days before the requested disbursement date, we will pay the amount of
the borrowing on that disbursement date; otherwise, we will make payment as soon
as reasonably practicable after receipt of your request for payment.

            Each request for payment must be in a minimum amount of $5,000 and
in whole multiples of $1,000 if above $5,000.

            You acknowledge and agree that all outstanding borrowings previously
made by us to you under the Existing Agreement or otherwise will, as of the date
hereof, be subject to and covered by this letter and be deemed to constitute
borrowings under the Line of Credit.

            2. Interest Rate. You agree to pay interest at the rate of six and
three-quarters (6-3/4%) percent per annum on any amount borrowed under the Line
of Credit from the date borrowed until the date repaid in full. Interest will be
calculated on the basis of a year of 365 or 366 days, as the case may be, for
the actual number of days elapsed in the applicable period of the calculation.

            3. Payments and Prepayments.

                  (a) Payments. Subject to sections 8, 9 and 10 of this letter,
if not sooner repaid, or required to be repaid under section 6 of this letter,
you will pay the principal

<Page>
                                                                               3

amount of all borrowings, together with all accrued and unpaid interest, on the
third anniversary of the date of this letter.

            All payments of principal, interest and any other amounts payable by
you under this letter will be made to us at our office at 75 Varick Street, New
York, New York 10013 or at such other place as we direct you. If any date of
payment is not a business day, payment shall be made on the next succeeding
business day.

                  (b) Optional Prepayments. You may prepay any amounts borrowed
in whole or in part in amounts of at least $1,000 (or, if less, the aggregate
principal amount of all borrowings then outstanding) at any time without premium
or penalty. We are authorized to record the date and amount each payment or
prepayment of principal with respect to a loan (as well as the amount of each
borrowing thereof) in our internal records and/or on the schedule attached
hereto as Exhibit B, and any such notation shall constitute prima facie evidence
of the accuracy of the information so recorded; provided, however, that any
failure by us to make any such notation shall not affect your obligation with
respect to the borrowings hereunder. Amounts so prepaid may be reborrowed so
long as the aggregate principal amount of borrowings outstanding at any one time
does not exceed the maximum amount set forth in the first paragraph of this
letter.

            4. Security Interest. In order to secure the principal amount of and
all interest owed with respect to any and all borrowings under the Line of
Credit and all other amounts owed to us under this letter, you hereby grant to
us a security interest in 1,000,000 of the shares of common stock of the Company
owned by you, together with any certificates representing or evidencing those
shares, and all cash, interest, dividends, rights, investment property,
distributions, general intangibles and other property at any time and from time
to time

<Page>
                                                                               4

received, receivable or otherwise distributed in respect of or in exchange for
any or all of those shares, including, but not limited to, any additional
shares, securities or equity interests obtained by virtue of any
reclassification of or stock dividends on or "splits" of those shares or in
connection with any merger, consolidation, reorganization or recapitalization of
the Company, and all other proceeds of those shares and the other property
previously mentioned. You will from time to time take all actions requested by
us which are reasonably necessary in order to create, maintain and perfect our
valid, first priority security interest in any and all of the collateral then
subject to our security interest under this letter (the "Collateral") including,
without limitation, obtaining, executing, delivering and/or filing financing
statements, control agreements, security agreements and other notices,
instruments or documents of any kind, and amendments and renewals thereto, and
delivering to us the certificates representing or evidencing any shares,
together with stock powers with respect thereto duly executed by you in blank or
as we may otherwise request. You authorize us to execute and file at any time
such financing statements (including, but not limited to, a financing statement
in lieu of a continuation statement pursuant to the Uniform Commercial Code as
in effect from time to time) without your signature and, if upon request you
fail to do so, to execute such control agreements, security agreements or other
notices, instruments or documents on your behalf. You will not sell, assign,
transfer, exchange or otherwise dispose of, or grant any option with respect to,
the Collateral nor will you create, incur or permit to exist any lien or
encumbrance of any nature with respect to any of the Collateral, any interest
therein or any proceeds thereof (except for the lien created by this letter)
without, in each case, the prior written consent of the Company. Within one
business day after the repayment in full of all outstanding borrowings and any
other amounts due

<Page>
                                                                               5

hereunder and the termination of the Line of Credit, we will release and return
to you any Collateral then in our possession.

            5. Miscellaneous.

                  (a) Amendments. No amendment of any provision of this letter
shall be effective unless in writing and signed by both of us.

                  (b) Costs and Expenses. You agree to pay all of our reasonable
expenses (including, but not limited to, reasonable legal fees and
disbursements) of every kind in connection with the enforcement of our rights
with respect to the Line of Credit.

                  (c) Continuing Obligation. This letter shall be your
continuing obligation, shall survive the termination of the Line of Credit and
shall be binding on you, your legal representatives, executors, administrators,
heirs and successors. You may not sell, assign or otherwise transfer all or any
part of this letter or any rights or obligations hereunder without our prior
written consent, and any attempted sale, assignment or transfer in violation
hereof shall be void.

                  (d) Submission to Courts. You consent to the jurisdiction of
the courts in the State of New York for all purposes in connection with this
letter.

                  (e) Law. This letter is governed by New York law.

            6. Termination. If a termination of your employment occurs for any
reason or if any one or more of the following events occur, we have the right,
at our option, to immediately terminate the Line of Credit upon written notice
to you and will then have no obligation to permit any additional borrowings
under this letter and, thirty (30) days after any one or more of the following
events occur, the entire unpaid principal amount of any borrowings, together
with all accrued and unpaid interest (subject to, with respect to the event
described in

<Page>
                                                                               6

paragraph (b) of this section 6, reduction as provided therein) and any other
amounts owed under this letter shall become due and payable without any notice,
presentment, protest or demand by us (all of which you agree are waived):

                  (a) You make an assignment for the benefit of your creditors,
or you file a petition in bankruptcy, or you are adjudicated insolvent or
bankrupt, or an order for relief is entered for you as a debtor under the
federal Bankruptcy Code, or you petition or apply to any court or other
authority for the appointment of a receiver or trustee for all or any
substantial part of your property or assets; or there is commenced against you
any such proceeding which remains undismissed at the end of such thirty (30)
days; or you, by an act or failure to act on your part, indicate your consent,
approval or acquiescence in any such proceeding or the appointment of any
receiver or trustee for all or substantially all of your property or assets and
such receiver or trustee is not discharged at the end of such thirty (30) days;
or

                  (b) You die; provided, however, that in such event, $1,000,000
in aggregate principal amount of borrowings then outstanding (or such lesser
amount as may then be outstanding), together with accrued but unpaid interest on
such amount, will be forgiven and released.

            The Line of Credit will also terminate as provided in section
10(c)(ii) of this letter and, on the Put Closing Date or Call Closing Date (as
such terms are hereinafter defined), as the case may be, the entire unpaid
principal amount of any outstanding borrowings, together with all accrued and
unpaid interest and any other amounts owed under this letter, shall become due
and payable without any notice, presentment, protest or demand by us (all of
which you agree are waived).

<Page>
                                                                               7

            7. Remedies. If you do not pay any amounts when they are due under
the terms of this letter, we can take any action that is permitted by law with
respect to the Collateral. This may include obtaining the possession of and
selling or otherwise disposing of any or all of the Collateral.

            8. Limited Recourse. Notwithstanding of any other provision of this
letter or the Employment Agreement, dated as of December 28, 2000, between us
and you (as it may be amended, restated, supplemented or otherwise modified from
time to time, the "Employment Agreement") to the contrary, your obligation to
pay the principal amount of and any interest on any borrowings under the Line of
Credit, and any other amounts owing hereunder, are enforceable by us solely
against the Collateral, and you will not be personally liable for payment of
such principal, interest or other amounts nor will any of such principal,
interest or other amounts be permitted to be set off against any amounts that
may be due to you under the Employment Agreement.

            9. Additional Loan Forgiveness. $1,000,000 in aggregate principal
amount of any borrowings then outstanding under the Line of Credit (or such
lesser amount as may then be outstanding), together with accrued but unpaid
interest on such amount, will be forgiven and released upon the date of the
first to occur of (a) a Change of Control (as such term is defined in section
10(e) of this letter), provided that you are employed by us on that date, (b)
the termination of your employment by us other than pursuant to Section 6.3 of
the Employment Agreement or (c) the termination of your employment with us by
you for Good Reason (as such term is defined in Section 6.5(c) of the Employment
Agreement. Amounts due under the Line of Credit will also be forgiven and
released as provided in section 10(c)(ii) of this letter.

<Page>
                                                                               8

            10. Put and Call.

                  (a) In the event of the occurrence of a Change of Control (as
hereinafter defined) (such event being hereinafter referred to as a "Change in
Control Event"), you may, by written notice to us given not more than 60 days
following the Change in Control Event (the "Put Notice"), require us to purchase
1,000,000 shares of common stock of the Company then owned by you (subject to
adjustment pursuant to section 10(f) of this letter). (The shares of common
stock of the Company or other securities or property subject to the Put Notice
are referred to as the "Put Shares".) Any such purchase and sale shall be
effected on the date which is the 90th day following the Change in Control Event
or, if not a business day, the next following business day (the "Put Closing
Date"). The per Put Share price shall be equal to the Fair Market Value (as
hereinafter defined) of a Put Share as of the date of the Change in Control
Event, subject to the provisions of section 11 of this letter (such applicable
per Put Share price is hereinafter referred to as the "Put Purchase Price").
Your rights pursuant to this section 10(a) are referred to hereinafter as the
"Put".

                  (b) If on May 31, 2002 (the "Call Notice Date"), any amounts
borrowed under the Line of Credit or any interest thereon remain outstanding, we
may, by written notice to you given at least 120 days prior to the Call Notice
Date (the "Call Notice"), require you to sell to us a sufficient number of
shares of common stock of the Company, up to 1,000,000 shares (subject to
adjustment pursuant to section 10(f) of this letter), to pay off such
outstanding amounts. (The shares of common stock of the Company or other
securities or property subject to the Call Notice are referred to as the "Call
Shares".) Any such purchase and sale shall be effected on the Call Notice Date
or, if not a business day, the next following business day (the "Call Closing
Date"), and at a per Call Share price (the "Call Purchase Price")

<Page>
                                                                               9

equal to the greater of (i) $6.00 per Call Share (the "Floor Price") and (ii)
the Fair Market Value of a Call Share as of the date of the delivery of the Call
Notice. Our rights under this section 10(b) are exercisable regardless of
whether we at any time have a valid, binding security interest in any shares of
common stock of the Company or other securities or property or whether you own
any such shares at the time of our exercise of these rights or on the Call
Closing Date. Our rights pursuant to this section 10(b) are hereinafter referred
to as the "Call".

                  (c) If a Put Notice or Call Notice is delivered, and we have
not agreed to a mutual rescission of the Put Notice or Call Notice, as the case
may be, then the closing of the purchase (the "Put/Call Closing") shall proceed
as follows:

                        (i) The Put/Call Closing shall be held either at our
            principal office on the Put Closing Date or Call Closing Date, as
            the case may be, or at such other place or on such other date as we
            and you may agree.

                        (ii) At the Put/Call Closing, we shall purchase the
            Put Shares or the Call Shares, as applicable (the "Shares") for the
            Put Purchase Price or the Call Purchase Price, as the case may be.
            The Put Purchase Price or the Call Purchase Price, as the case may
            be, shall be applied first to pay off any amounts remaining due
            under the Line of Credit with any remaining amount of the Put
            Purchase Price or Call Purchase Price, as the case may be, delivered
            in cash to you (at which time the Line of Credit will terminate). If
            the Put Purchase Price is not sufficient to repay the Line of Credit
            in full, the Put Purchase Price will nevertheless be accepted as
            payment in full of all amounts then due under the Line of Credit and
            all remaining amounts due shall be deemed forgiven and released. You
            shall deliver the certificates evidencing the Shares to be purchased
            by us, duly endorsed to us, together with all such other documents
            and

<Page>
                                                                              10

            instruments as are reasonably necessary to transfer good title to
            such Shares, free and clear of all liens, other than those created
            by us.

                        (iii) Our obligation and your obligation to proceed with
            the Put/Call Closing shall be conditioned upon, and the scheduled
            Put Closing Date or Call Closing Date, as the case may be, shall be
            extended to 10 days following the last to occur of, the receipt of
            all material governmental and regulatory consents, approvals or
            waivers, if any, that may be required and the lapse of all waiting
            or blackout periods that may apply in connection with the purchase
            and sale of the Shares; provided, however, that we shall not be
            obligated to purchase and you shall not be obligated to sell any
            Shares to the extent that proceeding with such transaction would
            violate any law, rule or regulation applicable to us, you, or any of
            our or your respective affiliates or respective businesses or
            assets, or subject any of the foregoing to any injunction or other
            equitable remedy of any court or governmental entity, and any
            Put/Call Closing Date shall be delayed for no more than 180 days if
            delaying the transaction would permit both us and you to proceed
            with the transaction without any such violation, injunction or other
            equitable remedy. We and you shall each use all reasonable efforts
            in cooperation with each other promptly to eliminate all legal
            impediments to effecting, and make all filings, give all notices and
            secure all consents, approvals and waivers that may be required in
            connection with, the purchase and sale of the Shares.

                  (d) The Put and the Call may each be exercised only once.

                  (e) For purposes of this letter, "Change of Control" shall
mean:

                        (i) the acquisition by any individual, entity or group
            (within the meaning of Section 13(d)(3) or 14(d)(2) of the
            Securities Exchange Act of 1934, as

<Page>
                                                                              11

            amended (the "Exchange Act")) (a "Person") of beneficial ownership
            (within the meaning of Rule 13d-3 promulgated under the Exchange
            Act) of greater than 50% of either (A) the then outstanding shares
            of common stock of the Company (the "Outstanding Company Common
            Stock") or (B) the combined voting power of the then outstanding
            voting securities of the Company entitled to vote generally in the
            election of directors (the "Outstanding Company Voting Securities"),
            or the making of any agreement with the Company to effect the
            foregoing; provided, however, that for purposes of this subsection
            (i), the acquisition of any securities of the Company by any
            employee benefit plan (or related trust) sponsored or maintained by
            the Company or any corporation controlled by the Company shall not
            constitute a Change of Control; or

                        (ii) individuals who, as of December 28, 2000,
            constitute the Board of Directors of the Company (the "Incumbent
            Board") cease for any reason to constitute at least a majority of
            the Board of Directors of the Company (the "Board"); or

                        (iii)  the Company enters into an agreement with respect
            to a reorganization, merger or consolidation or sale or other
            disposition of all or substantially all of the assets of the Company
            (a "Business Combination"), in each case, unless, following such
            Business Combination, (A) all or substantially all of the
            individuals and entities who were the beneficial owners,
            respectively, of the Outstanding Company Common Stock and
            Outstanding Company Voting Securities immediately prior to such
            Business Combination beneficially own, directly or indirectly, more
            than 50% of, respectively, the then outstanding shares of common
            stock and the combined voting power of the then outstanding voting
            securities entitled to vote generally in the election of directors,
            as the case may be, of the corporation resulting from such Business

<Page>
                                                                              12

            Combination (including, without limitation, a corporation which as a
            result of such transaction owns all of the common stock of the
            Company or all or substantially all of the Company's assets either
            directly or through one or more subsidiaries) in substantially the
            same proportions as their ownership, immediately prior to such
            Business Combination of the Outstanding Company Common Stock and
            Outstanding Company Voting Securities, as the case may be, (B) no
            person, company or other entity (excluding any corporation resulting
            from such Business Combination or any employee benefit plan (or
            related trust) of the Company or such corporation resulting from
            such Business Combination) beneficially owns, directly or
            indirectly, 50% or more of, respectively, the then outstanding
            shares of common stock of the corporation resulting from such
            Business Combination or the combined voting power of the then
            outstanding voting securities of such corporation except to the
            extent that such ownership existed in the Company prior to the
            Business Combination and (C) at least a majority of the members of
            the board of directors of the corporation resulting from such
            Business Combination were members of the Incumbent Board at the time
            of the execution of the initial agreement, or of the action of the
            Board, providing for such Business Combination; or

                        (iv) approval by the shareholders of the Company of a
            complete liquidation or dissolution of the Company.

                  (f) The number of Shares  subject to the Put and Call (and any
shares of stock or other  securities or property subject to the Put and the Call
as a result of an adjustment  under this section  10(f)) and the Floor Price are
subject to adjustment as follows:

                        (i) The Floor Price shall be proportionally decreased
            and the number of Shares subject to the Put or Call (or any shares
            of stock or other securities at

<Page>
                                                                              13

            the time subject to the Put or Call) shall be proportionally
            increased to reflect any stock split or subdivision of the Shares.
            The Floor Price shall be proportionally increased and the number of
            Shares subject to the Put or Call (or any shares of stock or other
            securities a the time subject to the Put or Call) shall be
            proportionally decreased to reflect any combination of the Shares.

                        (ii) In case the Company shall make or issue, or shall
            fix a record date for the determination of eligible holders entitled
            to receive, a dividend or other distribution with respect to the
            Shares (or any shares of stock or other securities at the time
            subject to the Put or Call) payable in (a) securities of the Company
            or (b) assets (excluding cash dividends paid or payable solely out
            of retained earnings), then, in each such case, if the Put or Call
            is exercised at any time after the consummation, effective date or
            record date of such dividend or other distribution, you (in the case
            of your exercise of the Put) shall require us to buy and we (in the
            case of our exercise of the Call) shall be entitled to require you
            to sell, in addition to the Shares (or such other stock, securities
            or property) subject to the Put or Call prior to such date, and
            without the payment of additional consideration therefore, the
            securities or such other assets of the Company to which you (in the
            case of the exercise of the Put) or we (in the case of the exercise
            of the Call) would have been entitled upon such date if you had
            exercised the Put or we had exercised the Call on the date hereof
            and had thereafter, during the period from the date hereof to and
            including the date of such exercise, retained such shares and/or all
            other additional stock and property during such period giving effect
            to all adjustments called for by this section 10(f).

<Page>
                                                                              14

                        (iii) If the Company, by reclassification of securities
            or otherwise, shall change any of the securities as to which
            purchase or sale rights pursuant to the Put or Call exist into the
            same or a different number of securities of any other class or
            classes, the Put and the Call shall thereafter represent the right
            to sell or acquire such number and kind of securities as would have
            been subject to the Put or Call as the result of such change with
            respect to the securities that were subject to the Put or Call
            immediately prior to such reclassification or other change and the
            Floor Price shall be appropriately adjusted, all subject to further
            adjustment as provided in this section 10(f).

                        (iv) In case of any capital reorganization of the
            capital stock of the Company (other than a combination,
            reclassification, exchange or subdivision of shares otherwise
            provided for herein), or any merger or consolidation of the Company
            with or into another corporation, or the sale of all or
            substantially all the assets of the Company then, and in each such
            case, as a part of such reorganization, merger, consolidation, sale
            or transfer, lawful provision shall be made so that you shall
            thereafter be entitled to sell (in the case of the Put) and we shall
            be entitled to buy (in the case of the Call), during the period
            specified herein and upon payment of the Put Purchase Price or Call
            Purchase Price, as applicable, then in effect, the number of shares
            of stock or other securities or property of the successor
            corporation resulting from such reorganization, merger,
            consolidation, sale or transfer that you would have been entitled to
            sell (in the case of the Put) and we would have been entitled to
            purchase (in the case of the Call) if the Put or Call had been
            exercised immediately before such reorganization, merger,
            consolidation, sale or transfer, all subject to further adjustment
            as provided in this section 10(f). The foregoing provisions of this
            section 10(f)(iv) shall similarly apply to

<Page>
                                                                              15

            successive reorganizations, consolidations, mergers, sales and
            transfers and to the stock or securities of any other corporation
            that are at the time subject to the Put or Call. If the per-share
            consideration payable for shares in connection with any such
            transaction is in a form other than cash or marketable securities,
            then the value of such consideration shall be determined in good
            faith by the Board. In all events, appropriate adjustment (as
            determined in good faith by the Board) shall be made in the
            application of the provisions of the Put and Call with respect to
            the rights and interests of you and us after the transaction, to the
            end that the provisions of the Put and Call shall be applicable
            after that event, as near as reasonably may be, in relation to any
            shares or other property deliverable after that event upon exercise
            of the Put or Call.

                        (v) In case all or any portion of the authorized and
            outstanding shares of common stock of the Company are redeemed or
            converted or reclassified into other securities or property pursuant
            to the Company's Certificate of Incorporation or otherwise, or the
            common stock otherwise ceases to exist, then, in such case, you
            (upon exercise of the Put) and we (upon exercise of the Call), at
            any time after the date on which the common stock is so redeemed or
            converted, reclassified or ceases to exist (the "Termination Date"),
            shall be entitled to sell (in the case of the Put) or purchase (in
            the case of the Call), in lieu of the number of shares of common
            stock that would have been subject to the Put or Call immediately
            prior to the Termination Date, the securities or property that would
            have been received if the Put or Call had been exercised in full and
            the common stock to be sold or purchased thereupon had been
            simultaneously redeemed, converted or reclassified, as the case may
            be immediately prior to the Termination Date, all subject to further
            adjustment as provided in this section 10(f). Additionally, the
            Floor

<Page>
                                                                              16

            Price shall be immediately adjusted to equal the quotient obtained
            by dividing (x) the aggregate Floor Price of the maximum number of
            shares of common stock for which the Call was exercisable
            immediately prior to the Termination Date by (y) the number of
            shares of common stock of the Company for which the Call is
            exercisable immediately after the Termination Date, all subject to
            further adjustment as provided in this section 10(f).

            11. Determination of Fair Market Value.

                  (a) In the event of a Change in Control Event that either (i)
is a Business Combination, as defined in clause (iii) of Section 10(e) of this
letter, or (ii) results from an acquisition of shares in the market pursuant to
a tender offer, the "Fair Market Value" of the Shares (including any shares of
stock or other securities or property subject to the Put or the Call as a result
of an adjustment under section 10(f) of this letter) shall equal the value of
the consideration received or to be received in connection therewith per Share,
determined as of the date of the Change in Control Event. To the extent that any
of such consideration consists of securities or property other than cash
("non-cash consideration"), the value of such non-cash consideration shall be
deemed to be its Market Value (as hereinafter defined).

                  (b) In the event of any Change in Control Events other than
those referred to in Section 11(a), and for the calculation of the Call Purchase
Price, the "Fair Market Value" of the Shares (including any shares of stock or
other securities or property subject to the Put or the Call as a result of an
adjustment under section 10(f) of this letter) shall equal the average of the
Market Values thereof for the five market trading days immediately preceding the
date of the Change in Control Event or the date of the delivery of the Call
Notice, as the case may be.

<Page>
                                                                              17

                  (c) The term "Market Value", with respect to any security or
other property as of any date, shall mean:

                        (i) if such security or other property is listed on
            any established stock exchange or a national market system,
            including without limitation the Nasdaq National Market or The
            Nasdaq SmallCap Market of The Nasdaq Stock Market, the closing sales
            price therefor (or the closing bid price, if no sales were reported)
            on the market trading day immediately preceding such date, as quoted
            on such exchange or system, as reported in the Eastern Edition of
            The Wall Street Journal; or,

                        (ii) if the security or other property is regularly
            quoted by a recognized securities dealer but selling prices are not
            reported, the mean between the high bid and low asked prices
            therefor on the market trading day immediately preceding such date;
            or

                        (iii) if there is no established market for such
            security or other property, the value as determined by the Board in
            good faith based on the then most recently completed arms' length
            transaction between the issuer or owner of the other property, as
            the case may be, and a person or entity other than an affiliate of
            the issuer or such owner (if such information is available to the
            Board) and such other factors as the Board may determine.

            12. Prior Agreements Superseded. This letter shall completely and
            fully supersede all prior undertakings or agreements, both written
            and oral, between you and us relating to the Line of Credit, any
            borrowings thereunder or any forgiveness provisions relating
            thereto, including those entered into in anticipation of this
            letter. To the extent of any conflict

<Page>
                                                                              18

between this letter on the one hand and the Employment Agreement or any other
related document on the other hand, this letter shall control as between you and
us.

            13. JURY TRIAL WAIVER. BOTH WE AND YOU WAIVE TRIAL BY JURY IN ANY
LEGAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY
ARISING OUT OF OR RELATED TO THIS LETTER.

            If the foregoing is acceptable to you, please sign and return to us
the enclosed copy of this letter.

                             Very truly yours,

                             StarMedia Network, Inc.

                             By  /s/ Justin K. Macedonia
                                --------------------------------------------
                                Name:  Justin K. Macedonia
                                Title: Senior Vice President and General Counsel

AGREED TO AND ACCEPTED AS OF THE DATE WRITTEN ABOVE:

/s/ Fernando J. Espuelas
----------------------------------------------------
Fernando J. Espuelas

<Page>

                                                                       EXHIBIT A

Star Media Network, Inc.
75 Varick Street
New York, NY 10013
Attention:  Justin Macedonia

            Re:  Request for Borrowing

Gentlemen:

            Pursuant to the letter agreement between StarMedia Network, Inc. and
the undersigned dated as of January 31, 2001 (the "Letter Agreement"), I hereby
request an advance of a loan in the amount of $____________(1) under the Line of
Credit (as defined in the Letter Agreement), to be disbursed on _______________
(which is a "business day", as defined in the Letter Agreement) as
follows:_______________________________________________________________________
________________________________(2) I understand that proceeds of the loan are
to be used only for the purposes specified in the first paragraph of the Letter
Agreement. To that end, I have completed the relevant sections of Federal
Reserve Board Form G-3 and have attached such Form G-3 to this request for
borrowing.

                            ----------------------------------------------------
                            Fernando J. Espuelas

                            ---------------------
                            Date:

--------
(1) Must be in a minimum amount of $5,000 and whole multiples of $1,000 above
    that amount.
(2) Insert payment/wire instructions.

<Page>

                                                                       EXHIBIT B

                          SCHEDULE TO LETTER AGREEMENT
                          DATED AS OF JANUARY 31, 2001
            BETWEEN FERNANDO J. ESPUELAS AND STARMEDIA NETWORK, INC.

                                                         Unpaid
                       Amount           Amount of       Principal       Notation
    Date              of Loan        Principal Paid      Balance        made by
    ----              -------        --------------     ---------       --------

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