Document:

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                                                              EXHIBIT 4.(a)(xix)

                     SETTLEMENT AGREEMENT AND MUTUAL RELEASE

THIS AGREEMENT is made the 10 day of October, 2001

BETWEEN:

(A)      BRITISH TELECOMMUNICATIONS PLC ("BT") of BT Centre, 81 Newgate Street,
         London, EC1A 7AJ

(B)      MADGE NETWORKS LIMITED ("MNL") of Wexham Springs, Framewood Road,
         Wexham, Slough, SL3 6PJ

(C)      MADGE.WEB LIMITED (in liquidation) ("MWL") of Wexham Springs, Framewood
         Road, Wexham, Slough SL3 6PJ

Together hereinafter referred to as the "Parties"

WHEREAS:

(1)      An agreement (numbered Z0012654) was entered into between BT and MNL
         (signed on 1 October 1998 by BT and on 30 September 1998 by MNL),
         whereby BT agreed to provide digital private circuits at a discount to
         MNL ("the Pool Agreement").

(2)      An agreement that was originally entered in to between BT and Gains
         (Channel Islands) Limited ("Gains") on 1 October 1996, whereby BT
         agreed to provide international telecommunication services ("the IPLC
         agreement") was assigned to MWL from 1 April 2000.

(3)      An agreement for the supply of managed billing services was entered in
         to between BT and MWL (signed by BT on 24 January 2001 and by MWL on 29
         January 2001) ("the Billing Agreement").

The Pool Agreement the IPLC Agreement and the Billing Agreement each as amended,
varied or supplemented are together hereinafter referred to as "the Agreements".

(4)      Pursuant to an order of the Chancery Division of the English High Court
         dated 27th April, 2001 Neville Barry Kahn and Peter Norman Spratt were
         appointed as joint administrators (the "Administrators") of the
         Company, with power to act either jointly or severally, to manage the
         affairs, business and property of MWL pursuant to the provisions of
         section 8 of the Insolvency Act 1986 for the purposes referred to in
         the order.

(5)      BT terminated the Billing Agreement on 23 May 2001.

(6)      Following the appointment of the Administrators digital private
         circuits and international telecommunication services (the "Services")
         continued to be supplied by BT.

(7)      On 17th August, 2001 resolutions for the winding up of MWL and the
         appointment of Neville Barry Kahn and David James Waterhouse as joint
         liquidators (the "Liquidators") with power to act either jointly or
         severally were passed, whereupon the order appointing the
         Administrators was discharged.

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(8)      BT issued Onebill invoices with the following ID numbers to MNL: 0020
         on 18 April 2001, 0021 on 8 May 2001, 0022 on 6 June 2001, 0023 on 10
         July 2001 and 0024 on 6 August 2001 (hereinafter "the Onebill
         Invoices").

(9)      Dispute arose between BT on the one hand and MNL and MWL on the other,
         as to whether or not MNL had assigned or novated its obligations under
         the Pool Agreement and in relation to the Onebill Invoices to MWL.

(10)     BT commenced Claim Number HC01C03561 in the High Court of Justice,
         Chancery Division ("the Claim") against MNL and MWL and claimed payment
         from MNL of invoices 1130594, 11361834, 11396898, 11301557, 11393482
         and 11442866 (together "the Invoices") less certain credits and a
         Declaration against MNL and MWL that the Pool Contract was not novated
         to MWL.

NOW IN CONSIDERATION of the mutual agreements, undertakings and releases
contained herein

IT IS HEREBY AGREED between the Parties, for and on behalf of themselves, their
respective agents, successors and assigns, that they hereby fully and finally
settle any and all liabilities arising out of or connected with the Agreements,
the Services, the Claim the Invoices, the Onebill Invoices and any other
services utilised by MWL on the following terms and conditions:

1.       Forthwith, following signature by all of the Parties of this Settlement
         Agreement, BT will raise and deliver credit notes in relation to the
         Invoices to MNL and will issue and send an invoice to MWL for
         (pound)1,100,000 plus VAT.

2.       MWL will pay (pound)1,100,000 plus VAT to BT by bank transfer to BT's
         bank account maintained with HSBC plc (account number XXX, sort
         code XXX) ("BT's Bank Account") within 3 working days of the
         signature by all of the Parties of this Settlement Agreement and
         subject to receipt of the credit notes and invoices referred to in
         Clause 1. MWL agrees that it will have no right to make any deduction
         or set-off whatsoever from this payment.

3.       BT will raise and deliver an invoice for telecommunications services to
         MWL for (pound)150,000 plus VAT on each of the following dates: 15
         January 2002, 15 April 2002, 15 July 2002 and 15 October 2002. Each
         invoice will provide for payment on the 15th day of the following
         calendar month. Within 7 working days of receipt of each invoice, MWL
         agrees to provide written confirmation to MNL that it has received each
         invoice from BT.

4.       Subject to clause 3 above being complied with MNL will
         pay(pound)150,000 plus VAT to BT by bank transfer to BT's Bank Account
         on 15 February 2002, 15 May 2002, 15 August 2002 and 15 November 2002
         and BT agrees to accept such payments in satisfaction and discharge of
         the invoices referred to in clause 3 and agrees that in the event of
         failure of MNL to make such payments, that it does not have any
         recourse to MWL. MNL agrees that should any payment under this clause
         not be made on the due date, then the entire remaining balance due from
         MNL shall be payable by MNL within 7 days of the receipt by MWL of
         invoices for the total of the remaining balance due under this clause.
         In such event, MWL agrees to forward such invoices for the total of the
         remaining balance due under this clause to MNL immediately by facsimile
         transmission. MNL agrees that it will have no right to make any
         deduction or set-off whatsoever from any payment due under this clause.

5.       MNL agrees that if a liquidator or administrator is appointed to MNL,
         and
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         (i)      one or more of the payments to be made pursuant to clause 4 is
                  not made in full or

         (ii)     the liquidator or administrator of MNL seeks to have any
                  amount paid by MNL to BT repaid to MNL

         then BT may prove in the liquidation or any scheme or arrangement for
         the full amount of the Invoices less any amounts paid under this
         Settlement Agreement which have not been repaid by MNL.

6.       Within 3 working days of the signature by all Parties to this
         Settlement Agreement, BT will raise and deliver credit notes to MNL for
         the Onebill Invoices.

7.       Save insofar as is necessary to comply with the terms of this
         Settlement Agreement MWL and MNL are irrevocably released from all or
         any obligations under the Agreements

8.       MWL will use its reasonable endeavours to assist BT in the novation of
         bandwidth contracts relating to circuits supplied under the Pool
         Agreement to customers by:

         (i)      the provision of relevant information in the possession of MWL
                  at the date of this Settlement Agreement, where appropriate,
                  and only in circumstances where MWL is not prevented from
                  providing such information to BT by law or other regulatory
                  process including without limitation pursuant to the Data
                  Protection Act 1998 or by duties of confidentiality and

         (ii)     where, appropriate and requested by customers, the execution
                  of novation agreements.

         MNL will use its reasonable endeavours to assist MWL in this process.

9.       The terms of this Settlement Agreement are in full and final settlement
         and the Parties absolutely release, acquit and forever discharge each
         other, their agents, successors and assigns and the Liquidators and the
         Administrators from any and all liabilities, claims, demands, suits,
         actions or proceedings of any nature (including but not limited to
         claims for interest and costs and any claim as an administration
         expense) which they now or may hereafter have howsoever arising out of
         or in connection with the Agreements, the Services, the Claim the
         Invoices the Onebill Invoices and any other services utilised by MWL.

10.      The Parties hereby agree that BT will discontinue the Claim with no
         order as to costs. The Parties hereby agree that each will bear its own
         costs in relation to the Claim. BT agrees to file a Notice of
         Discontinuance of the Claim with the Chancery Division of the High
         Court pursuant to Part 38 of the Civil Procedure Rules and serve notice
         thereof on MWL and MNL within 3 working days of the date of this
         Settlement Agreement.

11.      The Parties agree that they are fully estopped from, undertake to
         refrain from, and waive absolutely and finally any and all rights of
         making and bringing any claims, demands, suits, actions or proceedings
         of any nature whatsoever against each other, their agents, successors
         and assigns and the Liquidators and the Administrators in connection
         with any liability, claim, demand, lien or cause of action (including
         but not limited to claims for interest and costs and any claim as an
         administration expense) which they now and may hereafter have arising
         out of or in connection with the Agreements, the Services, the Claim
         the Invoices the Onebill Invoices and any other services utilised by
         MWL.
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12.      Each Party shall bear its own legal costs in connection with the
         preparation of this Settlement Agreement.

13.      The Liquidators act as agents of MWL and shall not incur any personal
         liability of any kind under, or by virtue of, this Settlement
         Agreement, nor in relation to any related matter or claim, whether in
         contract, tort or restitution or by reference to any other remedy or
         right, in any jurisdiction or forum.

14.      If any term or provision in this agreement is or becomes in whole or in
         part to any extent illegal, invalid or unenforceable under any
         enactment or rule of law, that shall not affect the validity or
         enforceability of any other provision of this agreement and if any term
         or provision is held not to be valid, but would be valid if part of the
         wording were deleted or modified, that term or provision shall apply
         with the necessary deletion or modification.

15.      Save as expressly provided to the contrary, no person who is not a
         party to this agreement has any rights under the Contract (Rights of
         Third Parties) Act 1999 to rely on or enforce any term of this
         Settlement Agreement, but this does not affect any right or remedy of a
         third party which exists or is available apart from that Act. The
         Administrators and the Liquidators shall be entitled to rely on and
         enforce the terms of this agreement in their favour.

16.      This Settlement Agreement may be executed in any number of
         counterparts. This has the same effect as if the signatures on the
         counterparts were on a single copy of the agreement.

17.      Each Party hereby confirms that this Settlement Agreement sets out the
         entire agreement between BT on the one hand and MNL and MWL on the
         other in relation to the subject matter herein.. Each of the Parties
         acknowledges that no representation of any nature has been made to that
         Party or relied upon by that Party in connection with or in relation to
         this settlement.

18.      This Settlement Agreement shall be governed by and construed in
         accordance with English law and shall be subject to the exclusive
         jurisdiction of the High Court of Justice of England and Wales.

19.      The Parties hereby agree that any and all information in relation to
         this Settlement Agreement, including but not limited to, the existence
         of this Settlement Agreement, all correspondence relating hereto and
         the terms of this Settlement Agreement shall be deemed to be
         confidential and shall not be disclosed to any company, body or person,
         other than to the parties' respective professional advisers or as may
         be required by law provided that the Liquidators shall be at liberty to
         disclose them to the creditors' committee established in the
         liquidation and to show aggregate figures in their liquidation
         accounts, records and returns.

Signed:    /s/ Liesbeth Koomen                           Dated: October 10, 2001
           ---------------------------------
           on behalf of BT
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Signed:    /s/ Martin Malina                             Dated: October 10, 2001
           -----------------------------------
           on behalf of MNL

Signed:    /s/ Neville Kahn                              Dated: October 10, 2001
           ----------------------------------
           by Neville Kahn as liquidator
           on behalf of Madge Web Limited
           (in liquidation) as agent and without
           personal liability
                                       5<PAGE>

                                                               EXHIBIT 4.(a)(xx)

                                                            MADGE TECHNOLOGY NV.
                                                            Kaya Douwe Zalm 1-L,
                                                                        Curacao,
                                                        The Netherlands Antilles

27th December, 2001.

Dear Mr Madge,

           EMPLOYMENT TERMINATION AGREEMENT BETWEEN ROBERT H MADGE AND
                      MADGE TECHNOLOGY NV (THE "COMPANY")

I refer to the termination of your employment by the Company (or any Group
Company if applicable) by mutual consent effective October 10 2001 (the
"Termination Date").

The following terms have been agreed between us:

1.       DEFINITIONS

         In this letter:

         Parent Company                  means Madge Networks NV

         Group Company                   means the Parent Company and any
                                         Subsidiary and Associated company/ies
                                         of the Parent Company from time to time
                                         excluding the Company;

         Associated company              means as defined by United States
                                         Generally Accepted Accounting
                                         Principals ("GAAP");

         Subsidiary company              means as defined by United States GAAP.

2.       PRIVATE MEDICAL INSURANCE

         The Company will cease to provide you with any cover under its Group
         Private Health Insurance Scheme from the Termination Date.

3.       LIFE INSURANCE

         The Company will cease to provide you with any cover under its Group
         Life Insurance and Permanent Health Insurance schemes from the
         Termination Date.

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4.       CONSULTANCY AGREEMENT

         The Company will, or will procure that a Group Company shall, at the
         conclusion of this agreement enter into a consultancy agreement with
         you, effective October 10, 2001, which is to remain in effect through
         October 9, 2003, and which will not be cancellable at the option of the
         Company except for reason of gross misconduct. The Consultancy
         Agreement will provide for your availability to provide consulting
         services to the Company or other Group Companies from time-to-time in
         relation to knowledge of the past activities of Group Companies and the
         strategic development of Group Companies as mutually agreed for a
         monthly fee of $10,000. For the avoidance of doubt you will not be
         provided with any benefits or compensation for these services (other
         than the monthly fee plus any allowable expenses incurred as specified
         in the Consultancy Agreement) and your relationship with the Company
         will be that of an independent contractor and not as an employee or
         agent of the Company or any other Group Company. You will be
         responsible for direct payment of any taxes on the compensation paid to
         you under the Consultancy Agreement.

         You are not authorized to bind the Company or make any representations
         on its behalf in any matter, except as set forth in the Consultancy
         Agreement or in your capacity as Supervisory Director of the Parent
         Company.

         This does not affect any appointment to the role of Supervisory
         director or (if applicable) to Designated Supervisory director of the
         Parent Company and the additional remuneration you may receive for
         these roles or for any other fees you may receive as director of any
         Associated company.

5.       MADGE NETWORKS NV 1993 STOCK PLAN

         Under the terms of the Madge Networks NV 1993 Stock Plan, vesting of
         options previously granted to you will cease with effect from the date
         of your termination. You will have a right to exercise the vested
         portion of any options previously granted to you for a period of 90
         days from the date of termination. This does not affect any options
         granted to you in your new role as Supervisory Board director and
         proposed new role of Designated Supervisory director (if so appointed)
         of the Parent Company.

6.       LEGAL PROCEEDINGS

         You will, at the request of the Company, provide the Company and any
         other Group Company with such assistance as it may reasonably require
         in the conduct of legal proceedings or any inquiry or investigation in
         respect of which the Company or its legal advisers believe you may be
         able to provide assistance. In such a situation the Company will
         reimburse you for your time and expenses involved.

7.       INDEPENDENT LEGAL ADVICE

         By countersigning this letter, you warrant that you have received
         independent legal advice as to the terms and effect of this letter and
         the fact that you will be precluded from bringing a claim of unfair
         dismissal or for a statutory redundancy payment or a claim of sex, race
         or disability discrimination or in respect of unauthorized deductions
         from wages.

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         You represent and warrant that you have informed the Company of all and
         any contractual, statutory or any other claim that you have or may have
         against the Company or any other Group Company which arises from your
         employment or its termination or your role as Managing Director of the
         Management Board of the Parent Company and you agree that this
         agreement is entered into by you in relation to such claims.

8.       COMPENSATION

         By way of compensation for loss of office and the termination of your
         employment (and subject to your fulfillment of the conditions and
         obligations set out in paragraph 9) the Company agrees to pay or to
         procure that a Group Company pay to you the sum of $580,000. Any
         entitlement to bonus payments have already been paid or are included in
         the Compensation Payment and no additional sum is due to you for bonus
         payments. The Compensation Payment will be made to you in 24 monthly
         installments of $24,166 on or around the 28th day of each month,
         commencing on October 28th, 2001 (and backdated as necessary).

         In addition you will receive a payment of $134,880 in lieu of notice
         and this will be paid to you in 3 monthly installments on or around the
         28th day of each month, commencing on October 28th 2001 (and backdated
         as necessary).

         All payments specified under this clause 8 are recognised as debts
         incurred by the company to you as of the date of this Agreement, and
         the payments by installment are in the form of repayment of the debt
         (agreed by you in order to spread the cash flow impact on the Company).
         All such payments may be made by the Company directly or by a Group
         Company if the Company so elects, in its entire discretion and the
         Parent Company agrees to guarantee the payment of such sums in the
         event the Company fails to honour its payment obligations.

9.       YOUR OBLIGATIONS

         In consideration of the Company agreeing to make the Compensation
         Payment referred to in paragraph 8 by way of compensation for loss of
         office and in connection with the termination of your employment, you
         represent, warrant and undertake to the Company that:

9.1      subject to requirements for your role as Supervisory Director of the
         Parent Company or in conjunction with the Consultancy Agreement, you
         have returned in good condition and without modification all books,
         documents, correspondence, computers and computer discs, papers,
         materials, lease car, mobile telephone, credit or charge cards, keys
         and security access cards, including all copies thereof, and all other
         property of or relating to the business or affairs of the Company or
         any other Group Company or any officer, employee, customer, supplier or
         agent of the Company or any other Group Company, its or their
         customers, clients or suppliers, to the Company's premises.

9.2      you have committed no breach of duty (including fiduciary duty) to the
         Company or any other Group Company and that you are not aware of any
         such breach by any other director or employee of the Company or any
         other Group Company.

9.3      you are solely responsible for the payment of any tax of any nature and
         any liability to national insurance contributions or other payroll
         taxes (whether payable in the

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         Netherlands or elsewhere) arising by reason of any payment or the
         provision of any other benefit set out in this letter (save for any tax
         deducted by the Company from the payments specified in paragraphs 4 and
         8 for which the Company shall account to the relevant tax authority).
         You will fully and effectively indemnify and keep indemnified every
         Group Company against all liabilities to taxation (including, without
         limitation, any liability resulting from a failure to deduct tax) and
         national insurance contributions (including any reasonable costs and
         expenses) which any such company may incur by reason of such payment or
         the provision of such benefit.

9.4      there is no fact or circumstance under which any payment is due or
         could become due from the Company or any other Group Company to you
         other than under the terms of this letter, the terms of your proposed
         appointment as a Supervisory Director or as a Designated Supervisory
         Board member (if applicable) of the Parent Company or under the
         Consultancy Agreement or by reason of your potential shareholding in
         the Parent Company.

9.5      you will not make any statement to any third party regarding your
         employment or its termination or the business affairs of the Company or
         any other Group Company their suppliers, customers, employees, officers
         or agents except as required by law or by any regulatory body. In the
         event that disclosure is required by law or regulatory body you shall
         provide written notice of the proposed disclosure to the Company at
         least two working days before you make such disclosure.

9.6      you shall not (save as may be required by law or by any regulatory body
         or save as such information may be in the public domain or save to your
         own professional advisers) divulge to any person whatever or otherwise
         make use and shall use your reasonable endeavours to prevent the
         divulging or making use of any trade secret or any confidential
         information concerning the employees or officers or business or
         finances of the Company or any of its dealings, transactions or affairs
         or any trade or secret process or any such confidential information
         concerning any other Group Company or any of their employees, officers,
         suppliers, agents, distributors or customers; If disclosure is required
         by law or any regulatory body you will comply with the obligations in
         clause 9.5 above.

9.7      you will not make any derogatory or critical statements or comments
         (whether written or oral) concerning the Company or any other Group
         Company or any of its or their directors, officers, employees,
         shareholders or investors (and the Company agrees that it will not make
         any such derogatory statements about you).

9.8      you will not assist in any manner whatsoever (save as required by order
         of a court of competent jurisdiction) any person, firm or company in
         bringing any claim against the Company (or any other Affiliate of the
         Company) or commencing or continuing any legal proceedings against such
         company that relates to an event that has already occurred and of which
         you are currently aware.

9.9      you will not (directly or indirectly) on your own account or on behalf
         of or in conjunction with any person for a period of twelve months
         after the Termination Date:

         a)       be concerned with any business which directly competes with
                  or, at the commencement of your involvement with such
                  business, plans to directly compete with the business carried
                  on at the Termination Date by any Group Company;

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         b)       deal with or canvass or solicit business from, for goods of a
                  similar type to those being manufactured or dealt in by the
                  Company at the Termination Date, or any person who has been a
                  customer of the Company and with whom you were actively
                  involved in the course of your employment;

         c)       induce or attempt to induce any Group Company employee who
                  directly reported to you, any manager level employee, any
                  director level employee, any Vice President, or any
                  salesperson or development engineer of any Group Company who
                  is engaged in any business or activity carried on by any Group
                  Company at the Termination Date, to leave the employment of
                  the Company (whether or not this would be a breach of contract
                  by the employee);

                  You acknowledge that the provisions of 9.9 are no more
                  extensive than are reasonable to protect any Group Company. In
                  this clause "person" includes any company, firm, organisation
                  or other entity. Each of the restrictions in each paragraph or
                  sub-clause above shall be enforceable independently of each of
                  the others and its validity shall not be affected if any of
                  the others is invalid. If any of those restrictions is void
                  but would be valid if some part of the restriction were
                  deleted the restriction in question shall apply with such
                  modification as may be necessary to make it valid.

                  You also note that the Consultancy Agreement, to be entered
                  into pursuant to clause 4 above, may contain similar
                  restrictive covenants at least for the period of the
                  Consultancy Agreement.

9.10     In the event that you commit any breach of this paragraph 9 you agree
         to immediately repay to the Company upon demand as a debt all sums
         which the Company has paid to you pursuant to paragraph 8 which shall
         include an amount in respect of sums accounted for by the Company to
         the relevant authorities in respect of tax and National Insurance
         contributions. For the avoidance of doubt if you commit any such
         breach, the Company shall have no further obligation or liability to
         make any further payments to you, pursuant to paragraph 8.

10.      THE COMPANY'S OBLIGATIONS

In consideration of the obligations undertaken by you under this Agreement the
Company agrees and the Parent Company hereby guarantees the obligations of the
Company under this Agreement that:-

10.1     it will, at your request, provide you with such assistance as you may
         reasonably require, in the conduct of legal proceedings or any inquiry
         or investigation brought against you in respect of your actions or
         omissions whilst acting in your capacity as employee, officer, Managing
         Director, CEO or Chairman of the board of the Company or of the Parent
         Company or of any Group Company (for the purposes of this clause such
         capacity shall be referred to as your capacity as "Employee with the
         Company");

10.2     it has informed you of all and any contractual, statutory or any other
         claim that it has or may have against you which arises from you being
         an Employee of the Company or from the termination of your role as
         Employee of the Company;

                                       5
<PAGE>

10.3     you will continue to be covered, to the extent permitted by the
         policies, under all and any directors & officers' insurance that the
         Company or any Group Company has or had in place during the period you
         were an Employee of the Company for acts or omissions that you did as
         an Employee of the Company;

10.4     there is no fact or circumstance, that the Company is currently aware
         of, under which any payment is due or could become due from you to the
         Company or any Group Company;

10.5     it has no claim that the Company is currently aware of against you in
         your capacity as Employee of the Company, or otherwise, and
         unconditionally discharges you from your responsibilities as employee
         except for your obligation to assign any intellectual property
         developed by you during your employment to the Company and your
         continuing obligations under this agreement which include obligations
         related to non-disclosure of company information The Company notes that
         you are discharged from your liabilities as managing director the
         Parent Company to the extent that the matter was apparent to the
         shareholders from the annual accounts that were adopted from time to
         time by the general meeting of shareholders, subject to certain
         exceptions in the case of bankruptcy;

10.6     the indemnification agreement previously signed by the Parent Company
         and yourself continues in force;

10.7     it will not make any statement to any third party regarding your
         employment or its termination or your business affairs except as
         required by law or by any regulatory body. In the event that disclosure
         is required by law or regulatory body the Company shall provide you
         with written notice of the proposed disclosure at least two working
         days before it makes such disclosure;

10.8     it shall not (save as may be required by law or by any regulatory body
         or save as such information may be in the public domain or save to its
         own professional advisers) divulge to any person whatever or otherwise
         make use and shall use its reasonable endeavours to prevent the
         divulging or making use of, any confidential information concerning you
         or your finances or any of your dealings, transactions or affairs If
         disclosure is required by law or any regulatory body the Company will
         comply with the obligations in clause 10.7 above.

11.      SETTLEMENT

         You accept the terms of this letter and any sum paid under it, in full
         and final settlement of all present and future claims or rights of
         action arising in all jurisdictions that you have or may have against
         the Company or any other Group Company or any employees or officers or
         agents of those companies, relating to your employment or the holding
         of any office, the termination of your employment or relating to your
         loss of any office or any other matter arising including any common law
         or statutory claims that you have or may have against the Company and
         you will refrain from instituting or continuing and will immediately
         withdraw unconditionally any legal proceedings or complaint before or
         to any employment tribunal, or Dutch equivalent, in relation to any
         such matters as are referred to in this paragraph.

                                       6
<PAGE>

This letter, and any agreement concluded in relation to it, is to be construed
in accordance with and subject to Dutch Law. The proposals contained in it are
made without any admission of liability.

Yours sincerely

/s/ Martin Malina
-------------------------
For and on behalf of
Madge Technology NV

/s/ Martin Malina
-------------------------
For and on behalf of
Madge Networks NV

I hereby agree with the terms set out in the letter of which this is a
duplicate.

/s/ Robert Madge
-------------------------
Robert Madge

Date: 27 December 2001.

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