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                                                                     EXHIBIT 4.2

                               MADGE NETWORKS N.V.
                                 1993 STOCK PLAN

                  AS AMENDED MARCH 26, 1999 & DECEMBER 1, 2000

1.   Purposes of the Plan. The purposes of this Stock Plan are to attract and
retain the best available personnel for positions of substantial responsibility,
to provide additional incentive to Employees, Consultants and Directors of the
Company and its Affiliates worldwide and to promote the success of the Company's
business. Options granted under the Plan may be incentive stock options (as
defined under Section 422 of the Code) or non-statutory stock options, as
determined by the Administrator at the time of grant of an option and subject to
the applicable provisions of Section 422 of the Code, as amended, and the
regulations promulgated thereunder. Rights to purchase common stock may also be
granted under the Plan, subject to compliance with Applicable Laws.

2.   Definitions. As used herein, the following definitions shall apply:

     (a) "Administrator" means the Board or any of its Committees appointed
pursuant to Section 4 of the Plan.

     (b) "Affiliate" means any Subsidiary and any entity which has a business
relationship with the Company. The term Affiliate includes any entity which
becomes an Affiliate after the adoption of the Plan.

     (c) "Applicable Laws" means the corporate, securities and tax laws, whether
federal, state or local, that are applicable to the administration and
implementation of the Plan, including without limitation Dutch legislation
prohibiting insider trading and mis-use of inside information.

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

     (e) "Cause" means dismissal with cause by the Company or any Subsidiary for
such reason determined at the discretion of the Board.

     (f) "Code" means the U.S. Internal Revenue Code of 1986, as amended.

     (g) "Committee" means the Committee appointed by the Board of Directors in
accordance with paragraph (a) of Section 4 of the Plan.

     (h) "Common Stock" means the Ordinary Shares of the Company.

     (i) "Company" means Madge Networks N.V., a Netherlands corporation.

     (j) "Consultant" means any person, including an advisor, who is engaged by
the Company or any Affiliate to render services and is compensated for such
services, and any member of the Board whether compensated for such services or
not; provided that the term Consultant shall thereafter not include a Director.

     (k) "Continuing Director" means any member of the Board who has served
continuously as a Board member from and before the commencement of a transaction
resulting in a Change in Control, as such term is defined in Section 13(c) of
the Plan.

     (l) "Continuous Status as an Employee" means the absence of any
interruption or termination of the employment relationship by the Company or any
Subsidiary. Continuous Status as an Employee shall not be considered interrupted
in the case of: (i) sick leave, maternity leave,

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military leave or any other leave of absence approved by the Committee, provided
that such leave is for a period of not more than ninety (90) days, unless
reemployment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; or (ii) in the case of transfers between locations of the Company
or between the Company, its Subsidiaries or its successor.

     (m) "Director" means any member of the Supervisory Board of the Company who
is not compensated for his services or is paid only a director's fee by the
Company.

     (n) "Employee" means any person, including officers and Board members,
employed by the Company or any Parent or Subsidiary of the Company. The payment
of a fee to a Board member by the Company shall not be sufficient to constitute
"employment" by the Company.

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

     (p) "Fair Market Value" means, as of any date, the value of Common Stock
determined as follows:

          (i) If the Common Stock is listed on any established stock exchange or
     a national market system including, without limitation, the National Market
     System of the National Association of Securities Dealers, Inc. Automated
     Quotation ("NASDAQ") System, its Fair Market Value shall be the closing
     sales price for such stock (or the closing bid, if no sales were reported,
     as quoted on such system or exchange for the last market trading day prior
     to the time of determination) as reported in the Wall Street Journal or
     such other source as the Administrator deems reliable;

          (ii) If the Common Stock is quoted on the NASDAQ System (but not on
     the National Market System thereof) or regularly quoted by a recognised
     securities dealer but selling prices are not reported, its Fair Market
     Value shall be the mean between the high and low asked prices for the
     Common Stock; or

          (iii) In the absence of an established market for the Common Stock,
     the Fair Market Value thereof shall be determined in good faith by the
     Board.

     (q) "Group Member" means the Company, any Subsidiary of the Company or any
other body corporate nominated by the Board for this purpose which is not under
the control of any single person, but is under the control of two or more
persons, one of whom being the Company or its Parent and in relation to which
the Company or, (as the case may be), its Parent is able (whether directly or
indirectly) to exercise 20% or more of its equity voting rights.

     (r) "Incentive Stock Option" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

     (s) "Merit Option Period" means the period which commences three (3) market
trading days after the public announcement of the Company's quarterly financial
results (the "Merit Option Period Start Date") and ends fourteen (14) days
following the Merit Option Period Start Date.

     (t) "Nonstatutory Stock Option" means an Option not intended to qualify as
an Incentive Stock Option.

     (u) "Option" means a stock option granted pursuant to the Plan.

     (v) "Optioned Stock" means the Common Stock subject to an Option.

     (w) "Optionee" means an Employee, Consultant or Director who receives an
Option.

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    (x) "Person" means any individual, firm, partnership, corporation or other
entity and includes any successor of such entity and all Affiliates, Associates
and Subsidiaries (as such terms are defined in Rule 12b-2 of the Exchange Act)
of such entity.

     (y) "Parent" means a "parent corporation", whether now or hereafter
existing, as defined in Section 424(e) of the Code.

     (z) "Plan" means this 1993 Stock Plan, as amended from time to time, and
its Appendices.

     (aa) "Purchaser" means an Employee, Consultant or Director who exercises a
Stock Purchase Right.

     (ab) "Right" means a Stock Option or Stock Purchase Right granted under the
Plan.

     (ac) "Rule 16b-3" means Rule 16b-3 promulgated under Section 16 of the
Exchange Act or any successor thereto.

     (ad) "Share" means a Common Share of the Company, as adjusted in accordance
with Section 12 of the Plan.

     (ae) "Stock Purchase Right" means the right to purchase Restricted Stock
granted pursuant to Section 11 of the Plan.

     (af) "Subsidiary" means any corporation at least 50% of the voting stock of
which is owned, directly or indirectly, by the Company.

3.   Stock Subject to the Plan

     Subject to the provisions of Section 12 of the Plan, the maximum aggregate
number of shares which may be optioned and sold under the Plan is 14,500,000
Common Shares. The Shares may be authorised, but unissued, or re-acquired Common
Stock.

     If a Right should expire or become unexercisable for any reason without
having been exercised in full, the unpurchased Shares which were subject thereto
shall, unless the Plan shall have been terminated, become available for future
grant under the Plan.

4.   Administration of the Plan

     (a)  Procedure

          (i)  Administration by Board or its Committee. With respect to grants
     of Options or Stock Purchase Rights to Employees or Consultants who are
     neither Directors nor Officers of the Company, the Plan shall be
     administered by (A) the Board or (B) a Committee designated by the Board,
     which Committee shall be constituted in such a manner as to satisfy the
     legal requirements relating to the administration of the Plan, if any,
     under any Applicable Laws. Once appointed, such Committee shall continue to
     serve in its designated capacity until otherwise directed by the Board.
     From time to time the Board may increase the size of the Committee and
     appoint additional members thereof, remove members (with or without cause)
     and appoint new members in substitution therefor, fill vacancies, however
     caused, and remove all members of the Committee and thereafter directly
     administer the Plan, all to the extent permitted by the Applicable Laws.

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          (ii) Administration with respect to Directors and Officers. With
     respect to grants of Options or Stock Purchase Rights to Directors or
     Employees who are also Officers or Directors of the Company, a plan shall
     be administered by (A) the Board or (B) a Committee designated by the
     Board, which Committee shall be constituted in such a manner as to satisfy
     the Applicable Laws and to permit such grants and related transactions
     under the Plan to be exempt from Section 16(b) of the Exchange Act in
     accordance with Rule 16b-3. Once appointed, such Committee shall continue
     to serve in its designated capacity until otherwise directed by the Board.

          (iii) Multiple Administrative Committees. At the Board's discretion
     (and subject to Section 4(a)(ii) above), the Plan may be administered by
     different committees with respect to members of the Board, officers and
     Employees who are neither members of the Board nor officers.

          (iv) Appendices. The Board have the power to grant Options to
     Employees, Consultants or Directors under any additional conditions or
     restrictions set out in the Appendix to the Plan applicable to the country
     of residence or employment of such Optionee. If an Option is granted under
     an Appendix to the Plan, this must be specified at the date of grant by the
     Administrator.

     (b) Powers of the Administrator. Subject to the provisions of the Plan and
in the case of a Committee, the specific duties delegated by the Board to such
Committee, the Administrator shall have the authority, in its discretion:

          (i) to determine the Fair Market Value of the Common Stock, in
     accordance with Section 2(p) of the Plan and the Appendices;

          (ii) to select the Directors, Consultants and Employees to whom Rights
     may from time to time be granted hereunder;

          (iii) to determine whether and to what extent Options and Stock
     Purchase Rights or any combination thereof, are granted hereunder;

          (iv) to determine the number of shares of Common Stock to be covered
     by each such award granted hereunder;

          (v) to approve forms of agreement for use under the Plan and its
     Appendices;

          (vi) to determine the terms and conditions, not inconsistent with the
     terms of the Plan, of any award granted hereunder (including, but not
     limited to the share price and any restriction or limitation, based in each
     case on such factors as the Administrator shall determine, in its sole
     discretion);

          (vii) to determine whether and to what extent any vesting provisions
     for Options (as specified in any appropriate agreements) be accelerated;

          (viii) to determine the terms and restrictions applicable to Stock
     Purchase Rights and the Restricted Stock purchased by exercising such Stock
     Purchase Rights';

          (ix) to adopt, amend and rescind such rules and regulations as, in its
     opinion, may be advisable in the administration of the Plan and its
     Appendices; and

          (x) to make any other such determinations with respect to awards under
     the Plan as it shall deem appropriate.

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     (c) Effect of Committee's Decision. All decisions, determinations and
interpretations of the Administrator shall be final and binding on all Optionees
and Purchasers and any other holders of any Rights.

     (d) Rights of Optionee or Purchaser. Nothing in the Plan or in any
instrument executed pursuant to it will confer on any person any right to
continue in employment, nor will it affect the right of the provider of any
service relationship to terminate the employment of any person without liability
at any time with or without cause, nor will it impose upon the Board (or if so
delegated, the Committee) or any other person any duty or liability whatsoever
(whether in contract, tort or otherwise) in connection with:

          (i) the lapsing of any Right pursuant to the Plan;

          (ii) the failure or refusal to exercise any discretion under the Plan;
     and/or

          (iii) an Optionee or Purchaser ceasing to be a person who has a
     service relationship for any reason whatever.

5.   Eligibility for Options; Conditions of Options

     (a) Nonstatutory Stock Options may be granted to Employees, Consultants and
Directors and Incentive Stock Options may be granted only to Employees, but in
both cases only as determined by the Board and specified at the date of grant by
the Administrator. An Employee, Consultant or Director who has been granted an
Option may, if he is otherwise eligible, be granted an additional Option or
Options as determined by the Board.

     (b) Unless the Board determines otherwise, an employee of the Company or
any Subsidiary of the Company will be granted Options under this Plan or under
any other stock option plan operated by the Company or any of its Subsidiaries
on the date his/her employment commences or as soon as practicable
thereafter(1). Subject to 5(i) below a Director will be granted Options upon his
appointment to the Board either by the shareholders or by the Board pursuant to
the Company's articles of association. Additionally, an Employee may be granted
Options under this Plan during the Merit Option Period as determined by the
Board and in these circumstances the Board must give at least two (2) months
notice to the Dutch Securities Board before such Options are granted unless the
circumstances otherwise require; to the extent the Company has not given such
notice, Options shall not be granted pursuant to this section 5(b) unless the
Company has no material inside information (voorwetenschap) at the time of
grant.

     (c) Each Option shall be designated in a written option agreement as either
an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designations, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Options designated as Incentive Stock
Options are exercisable for the first time by any Optionee during any calendar
year (under all plans of the Company or any Parent or Subsidiary) exceeds
$100,000, such excess Options shall be treated as Nonstatutory Stock Options.

     (d) For purposes of Section 5(c), Incentive Stock Options shall be taken
into account in the order in which they were granted, and the Fair Market Value
of the Shares shall be determined as of the time the Option with respect to such
Shares is granted.

     (e) Notwithstanding any provision of the Plan to the contrary, each Stock
Option Agreement evidencing options granted to an Employee, Consultant or
Director of the Company or any

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(1)  Section 5(b) will take effet from December 1, 2000, the date that
     the amendments to the Paln were adopted by the Board.

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Affiliate shall include the relevant provisions applicable to the country or
state of residence or employment of such Employee, Consultant or Director. Such
provisions are set out, as appropriate, in the Appendices to the Plan.

     (f) The Plan shall not confer upon any Optionee any right with respect to
continuation of employment, office or consulting relationship with the Company,
nor shall it interfere in any way with his right or the Company's right to
terminate his employment, office or consulting relationship at any time, with or
without Cause.

     (g) Any person who ceases to have the status or relationship of an Employee
as a result of the termination of his employment for any reason and however that
termination occurs, whether lawfully or otherwise, shall not be entitled and
shall be deemed irrevocably to have waived any entitlement by way of damages for
dismissal or by way of compensation for loss of employment or otherwise to any
sum, damages or other benefits to compensate that person for the loss or
alternation of any rights, benefits or expectations in relation to any Rights or
expected Rights under the Plan.

     (h) Options and Stock Purchase Rights shall not (except as may be required
by law) form part of the emoluments of individuals or count as wages or
remuneration for pension or other purposes.

     (i) Options may not be granted to Directors or Consultants unless the
Company has no material inside information (voorwetenschap) at the time of
grant.

6.   Term of Plan. The Plan shall become effective upon the earlier to occur of
its adoption by the Board of Directors or its approval by the shareholders of
the Company as described in Section 19 of the Plan. It shall continue in effect
for a term of ten (10) years unless sooner terminated under Section 15 of the
Plan.

7.   Term of Option. The term of each Option shall be the term stated in the
option agreement; provided that the term shall be no more than ten (10) years
from the date of grant thereof or such shorter term as may be provided in the
Option agreement. However, in the case of an Incentive Stock Option granted to
an Optionee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the term of the Option shall
be five (5) years from the date of grant thereof or such shorter term as may be
provided in the Option agreement. Furthermore, in the case of an Option granted
to an Employee who resides in the United Kingdom which is not granted pursuant
to Appendix A hereof, the term of the Option shall be ten (10) years from the
date of grant thereof or such shorter term as may be provided in the Option
agreement. Finally, in the case of an Option granted to an Employee who resides
in the Netherlands which is not granted pursuant to Appendix C hereof, the term
of the Option shall be five (5) years from the date of grant thereof or such
shorter term as may be provided in the Option agreement.

8.  Option Exercise Price and Consideration

     (a) The per share exercise price for the Shares to be issued or transferred
pursuant to exercise of an Option shall be such price as is determined by the
Board, but shall be subject to the following:

          (i) In the case of an Incentive Stock Option

               (A) granted to an Employee who, at the time of the grant of such
          Incentive Stock Option, owns stock representing more than ten percent
          (10%) of the voting power of all classes of stock of the Company or
          any Parent or Subsidiary, the per Share exercise price shall be no
          less than 110% of the Fair Market Value per Share on the date of
          grant.

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               (B) Granted to any Employee, the per Share exercise price shall
          be no less than 100% of the Fair Market Value per Share on the date of
          grant.

          (ii) In the case of a Nonstatutory Stock Option granted to any
     Employee, Consultant or Director, the per Share exercise price shall be no
     less than 100% of the Fair Market Value per Share on the date of grant.

     (b) The consideration to be paid for the Shares to be issued upon exercise
of an Option, including the method of payment, shall be determined by the
Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (i) cash, (ii)
cheque, (iii) subject to compliance with the provisions of Netherlands law
relating to the repurchase of shares and the issuance of shares for other than
cash consideration other Shares which (x) in the case of Shares acquired upon
exercise of an Option either have been owned by the Optionee for more than six
(6) months on the date of surrender or were not acquired, directly or
indirectly, from the Company and (y) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised, (iv) delivery of a properly executed exercise notice
together with irrevocable instructions to a broker to promptly deliver to the
Company prior to issuance of the Shares the amount of sale or loan proceeds
required to pay the exercise price, (v) any combination of the foregoing methods
of payment, (vi) or such other consideration and method of payment for the
issuance of Shares to the extent permitted under Applicable Laws.

     (c) The per share exercise price set out in any Option shall be denominated
in U.S. dollars. The Company hereby agrees with payment in foreign currency of
the exercise price for any Shares purchased upon exercise of an Option. The
conversion into foreign currency of the US dollars denominated exercise price
will be at the closing spot rate of that foreign currency against the US dollar,
as published in the Wall Street Journal, or other similar journal on the last
market trading day prior to the exercise date.

9.   Exercise of Option

     (a) Procedure for Exercise; Rights as a Shareholder. Any Option granted
hereunder shall be exercisable at such times and under such conditions as
determined by the Board and as shall be permissible under the terms of the Plan.

     An Option may not be exercised for a fraction of a Share.

     An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may, as authorised by the Board, consist of any
consideration and method of payment allowable under Section 8(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorised transfer agent of the Company) of the Shares to
which an Option relates, no right to vote or receive dividends or any other
rights as a shareholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such Shares promptly upon exercise of the Option. No adjustment will
be made for a dividend or other right for which the record date is prior to the
date the Shares are issued, except as provided in Section 12 of the Plan.

In the event that the Company or any other person (other than the Optionee)
(hereafter referred to as the "Relevant Payer") is required, on the exercise of
an Option, to account to any taxation authority for any taxes, including all
social security taxes, (the "Tax Liability") as may be due, then that Option may
not be exercised unless:

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          (i) the Relevant Payer is able to deduct an amount equal to the whole
     of the Tax Liability from the Optionee's net pay for the next pay period;
     or

          (ii) the Optionee has paid to the Relevant Payer an amount equal to
     the Tax Liability; or

          (iii) the sum of the amount that the Optionee has paid to the Relevant
     Payer in respect of the Relevant Payer's obligation to satisfy the Tax
     Liability and the total amount that the Relevant Payer is able to deduct
     from the Optionee's net pay for the next pay period is equal to or more
     than the Tax Liability; or

          (iv) the Optionee has given irrevocable instructions to the broker (or
     any other person acceptable to the Company) for the sale of sufficient
     Shares acquired on the exercise of the Option to realise an amount equal to
     the Tax Liability and the payment of the Tax Liability to the Relevant
     Payer; or

          (v) The Optionee and the Relevant Payer have reached such other
     agreement for the payment of the Tax Liability.

An Option may only be exercised to the extent that it has vested in accordance
with any conditions of the Option grant (prescribed in a manner dictated by
Section 4 (b) (vi) but subject to Section 4 (b) (vii)) or the Option becomes
exercisable as set out in this Section 9(a).

     Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

     (b) Termination of Employment. In the event of termination of an Optionee's
Continuous Status as an Employee with the Company or any Subsidiary, or
consulting relationship or office of Director as a result of:

          (i) illness, injury and disability;

          (ii) retirement on or after the Optionee's normal retirement date;

          (iii) early retirement as determined by the Committee;

          (iv) the employing entity ceasing to be a Group Member;

          (v) the transfer or sale of the undertaking or part-undertaking in
     which the Optionee is employed to an entity which is not a Group Member; or

          (vi) any other reason determined at the discretion of the
     Administrator within thirty (30) days of such termination;

such Optionee may, but only within twelve (12) months after the date of such
termination (or such shorter period as may be provided in the option agreement,
but in no event later than the expiration date of the term of such Option as set
forth in the option agreement), exercise the Option to the extent that the
Optionee was entitled to exercise it at the date of such termination subject to
Section 4(b)(vii) above. If an Option is an Incentive Stock Option and is not
exercised within three (3) months following the Optionee's date of termination,
then such Option shall be treated as a Non-Qualified Stock Option beginning on
the day that is three (3) months and one (1) day following the Optionee's date
of termination. To the extent that the Optionee was not entitled to exercise the
Option at the date of such termination, subject to Section 4(b) (vii) above, or
if Optionee does not exercise such Option to the extent so entitled within the
time specified herein, the Option shall terminate unless the Administrator
determines otherwise.

     To the extent that termination of an Optionee's consulting relationship or
Continuous Status as an Employee or office of Director with Group Member (as the
case may be) is for any other reason,

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including with Cause, the Option shall terminate on the date of such termination
unless the Administrator determines otherwise.

     (c) Disability of Optionee. Notwithstanding the provisions of Section 9(b)
above, in the event of termination of an Optionee's consulting relationship or
Continuous Status as an Employee, or office of Director as a result of his total
and permanent disability (as defined in Section 22(e)(3) of the Code), Optionee
may, but only within twelve (12) months from the date of such termination (or
such shorter period as may be provided in the Option Agreement, but in no event
later than the expiration date of the term of such Option as set forth in the
Option Agreement), exercise the Option to the extent otherwise entitled to
exercise it at the date of such termination. To the extent that Optionee was not
entitled to exercise the Option at the date of termination, or if Optionee does
not exercise such Option to the extent so entitled within the time specified
herein, the Option shall terminate, unless the Administrator determines
otherwise.

     (d) Death of Optionee. In the event of the death of an Optionee, the Option
may be exercised, at any time within twelve (12) months following the date of
death (or such shorter period as may be provided in the Option Agreement, but in
no event later than the expiration date of the term of such Option as set forth
in the Option Agreement), by the Optionee's estate or by a person who acquired
the right to exercise the Option by bequest or inheritance, but only to the
extent the Optionee was entitled to exercise the Option at the date of death. To
the extent that Optionee was not entitled to exercise the Option at the date of
termination, or if Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate, unless
the Administrator determines otherwise.

     (e) Rule 16b-3. Options granted to persons subject to Section 16(b) of the
Exchange Act must comply with Rule 16b-3 and shall contain such additional
conditions or restrictions as may be required thereunder to qualify for the
maximum exemption from Section 16 of the Exchange Act with respect to Plan
transactions.

10.  Non-Transferability of Options. The Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee.

11.  Stock Purchase Rights.

     (a) Rights to Purchase Restricted Stock. Stock Purchase Rights may be
issued either alone, in addition to, or in tandem with other awards granted
under the Plan and/or cash awards made outside of the Plan. After the
Administrator determines that it will offer Stock Purchase Rights under the
Plan, it shall advise the offeree in writing of the terms, conditions and
restrictions related to the offer, including the number of Shares that such
person shall be entitled to purchase, the price to be paid, and the time within
which such person must accept such offer, which shall in no event exceed
one-hundred and twenty (120) days from the date of grant of the Stock Purchase
Right. The offer shall be accepted by execution of a Restricted Stock agreement
in the form determined by the Administrator. Shares purchased pursuant to the
grant of a Stock Purchase Right shall be referred to herein as "Restricted
Stock".

     (b) Purchase Price. The Restricted Stock shall be issued for such
consideration as the Administrator deems appropriate, including past services;
provided, however, that such consideration shall have a Fair Market Value at
least equal to one hundred percent (100%) of the Fair Market Value of the Common
Stock on the date of issuance.

     (c) Repurchase Option. Unless the Administrator determines otherwise, the
Restricted Stock agreement shall grant the Company a repurchase option
exercisable upon the voluntary or involuntary termination of the Purchaser's
employment with the Company for any reason (including death or disability). The
purchase price for Shares repurchased pursuant to the Restricted Stock

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agreement shall be the original price paid by the Purchaser and may be paid by
cancellation of any indebtedness of the purchaser to the Company. The repurchase
option with respect to the Restricted Stock shall lapse at such rate as the
Committee may determine.

     (d) Other Provisions. The Restricted Stock agreement shall contain such
other terms, provisions and conditions not inconsistent with the Plan as may be
determined by the Administrator in its sole discretion. In addition, the
provisions of Restricted Stock agreements need not be the same with respect to
each purchaser. The Administrator may amend any Restricted Stock agreement, but
no amendment which would adversely affect the individual's right to the
Restricted Stock shall be made without his or her written consent.
Notwithstanding the foregoing, only the Board may issue Restricted Stock to
individuals who are subject to the reporting requirements of Section 16(a) of
the Exchange Act.

     (e) Rights as a Shareholder. Once the Stock Purchase Right is exercised,
the Purchaser shall have the rights equivalent to those of a shareholder, and
shall be a shareholder when his or her purchase is entered upon the records of
the duly authorised transfer agent of the Company. No adjustment will be made
for a dividend or other right for which the record date is prior to the date the
Stock Purchase Right is exercised, except as provided in Section 13 of the Plan.

     (f) The Company will not grant any Stock Purchase Rights if the Company has
material inside information (voorwetenschap) at the time of grant.

12.  Adjustments. Subject to any required action by the shareholders of the
Company, the number of shares of Common Stock covered by each outstanding Right,
and the number of shares of Common Stock which have been authorised for issuance
under the Plan but as to which no Rights have yet been granted or which have
been returned to the Plan upon cancellation or expiration of a Right, as well as
the price per share of Common Stock covered by each such outstanding Right,
shall be proportionately adjusted for (i) any increase or decrease in the number
of issued shares of Common Stock resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock, (ii)
any other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Company, or (iii) any other
transaction with respect to Common Stock to which Section 424(a) of the Code
applies; provided, however, that conversion of any convertible securities of the
Company shall not be deemed to have been "effected without receipt of
consideration". Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number of price
of shares of Common Stock subject to a Right.

13.  Dissolution, Liquidation or Merger.

     (a) In the event of the proposed dissolution or liquidation of the Company,
all outstanding Rights will terminate immediately prior to the consummation of
such proposed action, unless otherwise provided by the Board. The Board may, in
the exercise of its sole discretion in such instances, declare that any Right
shall terminate as of a date fixed by the Administrator and give each Optionee
or Purchaser the right to exercise his Right, including Shares as to which the
Right would not otherwise be exercisable.

     Subject to the provisions of paragraph (b) hereof, in the event of a
proposed sale of all or substantially all of the assets of the Company, or a
merger in which the Company is not the surviving corporation, each outstanding
Right shall be assumed or an equivalent Right shall be substituted by such
successor corporation or a parent or subsidiary of such successor corporation,
unless the Board determines, in the exercise its sole discretion, that each
Optionee or Purchaser shall have the right to exercise his Right, including
Shares as to which the Right would not otherwise be exercisable.

                                       10
<PAGE>

     (b) In the event of a "Change in Control" of the Company, unless otherwise
determined by the Board prior to the occurrence of such Change in Control, the
following acceleration and valuation provisions shall apply:

          (i) Any Right outstanding as of the date such Change in Control is
     determined by the Board to have occurred that is not yet exercisable and
     vested on such date shall become fully exercisable and vested at the
     discretion of the Board; and

          (ii) The value of all outstanding Rights shall, unless otherwise
     determined by the Board at or after grant and subject to compliance with
     Applicable Laws, be cashed out. The cash-out proceeds shall be paid to the
     Optionee or Purchaser or, in the event of death of an Optionee or Purchaser
     prior to payment, to the estate of the Optionee, Purchaser or person who
     acquired the right to exercise the Right by bequest or inheritance.

     (c) For purposes of this Section 13, a "Change in Control" means the
happening of any of the following:

          (i) The acquisition by any Person, other than the Company or one or
     more persons controlling, controlled by or under common control with the
     Company, of beneficial ownership (as determined pursuant to Rule 13d-3
     under the Exchange Act) of fifty percent (50%) or more of the Company's
     outstanding voting securities pursuant to a transaction which the majority
     of the Continuing Directors does not at any time recommend the Company's
     shareholders accept or approve, or

          (ii) A change in the composition of the Board over any period of
     thirty-six (36) consecutive months or less such that a majority of the
     Board members (determined by rounding up the next whole number) cease to be
     comprised of individuals who either (A) were Continuing Directors at the
     start of such period or (B) were elected or nominated for election as Board
     members during such periods by at least a majority of the Continuing
     Directors in office at the time such election or nomination was approved by
     the Board.

     (d) Pursuant to the transaction that results in Madge Networks, Ltd.
becoming a Subsidiary of the Company, the Company may authorise the Plan to
assume options outstanding under the Madge Networks, Ltd. Share Option Scheme.
In the event of such authorisation, the Administrator may (i) make an offer to
Madge Networks, Ltd. optionees to substitute Options in the Company in exchange
for the surrender of options in Madge Networks, Ltd. and/or (ii) substitute
Shares reserved under the Plan for Madge Networks, Ltd. shares upon exercise of
options in Madge Networks, Ltd. (provided that such exercise is in accordance
with a "put and call" agreement between the optionee and the Company).
Notwithstanding the requirements set out in the Plan, for these purposes all
material terms of said Options (including number of shares, term of option and
exercise price) shall be continued as though no substitution had occurred,
subject to such adjustments (if any) as are required pursuant to the exchange
ratio applied to the transaction.

     (e) Pursuant to any transaction that results in a corporation (the
"Target") becoming a Subsidiary of the Company, the Board may authorise the Plan
to assume options outstanding under such Target's stock option plan and
substitute options to purchase shares of Common Stock in Madge Networks, N.V.
for such outstanding options. Notwithstanding the requirements set out in the
Plan, for these purposes all material terms of the Targets options (including
number of shares, term of option and exercise price) may be continued (at the
Board's discretion) as though no assumption and substitution had occurred,
subject to such adjustments (if any) as are required pursuant to the exchange
ratio applied to the transaction. In the case of options intended to be treated
as Incentive Stock Options, any assumption and substitution described in this
paragraph shall be in accordance with the requirements of Section 424(a) of the
Code.

                                       11
<PAGE>

14.  Time of Granting Options. The date of grant of an Option shall, for all
purposes, be the date on which the Administrator makes the determination
granting such Option, or such other date as is determined by the Board. Notice
of the determination shall be given to each Employee, Director or Consultant to
whom an Option is so granted within a reasonable time after the date of such
grant.

15.  Amendment and Termination of the Plan.

     (a) Amendment and Termination. The Board may at any time amend, alter,
suspend or discontinue the Plan, but no amendment, alteration, suspension or
discontinuation shall be made which would impair the rights of any Optionee or
Purchaser under any grant theretofore made, without his consent.

     (b) Effect of Amendment or Termination. Any such amendment or termination
of the Plan shall not affect Rights already granted, and such Rights shall
remain in full force and effect as if this Plan had not been amended or
terminated, unless mutually agreed otherwise between the Optionee or Purchaser
and the Board, which agreement must be in writing and signed by the Optionee or
Purchaser and the Company.

16.  Conditions Upon Issuance of Shares. Shares shall not be issued pursuant to
the exercise of a Right unless the exercise of such Right and the issuance and
delivery of such Shares pursuant thereto shall comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933, as
amended, the Exchange Act, the rules and regulations promulgated thereunder, and
the requirements of any stock exchange upon which the Shares may then be listed,
and shall be further subject to the approval of counsel for the Company with
respect to such compliance.

     As a condition to the exercise of a Right, the Company may require the
person exercising such Right to represent and warrant at the time of any such
exercise that the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned relevant provisions of law.

17.  Reservation of Shares. The Company, during the term of this Plan, will at
all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

     The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company's counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve
the Company of any liability in respect of the failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained.

18.  Agreements. Rights shall be evidenced by written agreements in such form as
the Board shall approve from time to time, subject to the provisions of the
attached Appendices setting forth special rules for Employees, Consultants and
Directors who are neither resident in the USA nor employed by the Company.

19.  Shareholder Approval. The grant of Incentive Stock Options under the Plan
shall be subject to approval by the shareholders of the Company within twelve
(12) months before or after the date the Plan is adopted excluding Incentive
Stock Options issued in substitution for outstanding Incentive Stock Options
pursuant to Section 424(a) of the Code. Such stockholder approval shall be
obtained in the degree and manner required under Applicable Laws. The
Administrator may grant Incentive Stock Options under the Plan prior to approval
by the shareholders, but until such approval is obtained, no such Incentive
Stock Option shall be exercisable. In the event that shareholder approval is not
obtained within the twelve (12) month period provided above, all Incentive Stock
Options previously granted under the Plan shall be exercisable as Non-Qualified
Stock Options.

                                       12
<PAGE>

                                   APPENDIX A

                    APPROVED OPTION GRANTS TO U.K. EMPLOYEES

       This Appendix A and the Plan together with the Notice of Stock Option
Grant, Stock Option Agreement and Exercise Notice for Vested Shares form the UK
Approved Option Sub-Plan of the Plan ("the 1993 UK Approved Sub-Plan").

       This Appendix details the manner in which the rules of the Plan will be
applied for the purposes of the 1993 UK Approved Sub-Plan. The Committee will
determine whether Eligible Employees receive Options under this 1993 UK Approved
Sub-Plan ("Approved Options") or under the Plan without reference to this
Appendix A ("Unapproved Options") and, having so determined, the Committee must
specify on the Notice of Stock Option Grant whether the Option is an Approved
Option or Unapproved Option. Only Approved Options shall be eligible to receive
special tax treatment under ICTA.

       Where there is any conflict between the provisions of this Appendix on
the one hand and any of the rules of the Plan, the Notice of Stock Option Grant,
the Stock Option Agreement or the Exercise Notice for Vested Shares on the other
hand, the provisions of this Appendix shall prevail.

       Where there is any conflict between the provision of the Notice of Stock
Option Grant, the Stock Option Agreement and/or the Exercise Notice for Vested
Shares the order of priority: first, the Notice of Stock Option Grant; second,
the Stock Option Agreement; third, the Exercise Notice for Vested Shares.

1.  In this Appendix where the context so admits or requires the following words
or expressions shall have the following meanings:

Words and expressions                                  Meanings
---------------------                                  --------
"the Companies"                         as the case may be Madge Networks N.V.
                                        and/or any one or more of the Relevant
                                        Subsidiaries

"Eligible Employees"                    United Kingdom resident employees of the
                                        Companies who are (i) full-time
                                        directors of the Companies devoting a
                                        minimum of 25 hours per week (excluding
                                        meal breaks) to the duties of the office
                                        or (ii) employees of the Companies who
                                        are not also directors of the Companies

"ICTA"                                  the Income and Corporation Taxes Act
                                        1988

"Madge Networks N.V."                   Madge Networks N.V.

"the Plan"                              Madge Networks N.V.'s 1993 Stock Plan

"Relevant Subsidiaries"                 means any company or companies or which
                                        Madge Networks N.V. has control and the
                                        word "control" shall have the meaning
                                        given to it by Section 416 of the ICTA

"Schedule 9"                            Schedule 9 of ICTA

                                       13
<PAGE>

       (a) Reference to a clause is to a clause of this Appendix.

       (b) Unless otherwise defined the terms in this Appendix shall have the
       meaning given to them in the Plan.

2. Subject to the provisions of clauses 3 and 4, only Eligible Employees (who
are selected to participate in the 1993 UK Approved Sub-Plan by the Companies)
will be entitled to participate in the 1993 UK Approved Sub-Plan.

3.1 No Eligible Employee shall be entitled to obtain or exercise rights under
the 1993 UK Approved Sub-Plan at any time when he has, or has within the
preceding twelve (12) months had, a material interest in a close company which
is:

       (a) a company shares in which may be acquired pursuant to the exercise of
       rights obtained under the 1993 UK Approved Sub-Plan; or

       (b) a company which has control of such a company or is a member of a
       consortium which owns such a company.

3.2    For the purposes of this clause:

       (a) "close company" shall have the meaning given to it by Paragraph 8 of
       Schedule 9;

       (b) "member of a consortium" shall have the meaning given to it by
       section 187(7) of ICTA; and

       (c) "material interest" shall have the meaning given to it by section
       187(3) of ICTA.

4. No Eligible Employee shall obtain rights under the 1993 UK Approved Sub-Plan
if those rights would, at the time those rights are obtained, cause the
aggregate market value of the shares which that Eligible Employee may acquire in
pursuance of rights obtained under the 1993 UK Approved Sub-Plan or under any
other share option scheme, not being a savings-related share option scheme (as
defined by paragraph 1 of Schedule 9), approved under Schedule 9 and established
by Madge Networks N.V. or by any associated company (as defined by Section 416
of the ICTA) of Madge Networks N.V. (and not exercised) to exceed or further
exceed pounds sterling 30,000. If any Approved Option is granted in error which
does so exceed the pounds sterling 30,000 limit, it shall be construed as being
limited to take effect as a grant of an Approved Option to acquire such whole
number of shares as shall bring the aggregate market value of all rights up to,
or as nearly as may be, pounds sterling 30,000.

       For the purposes of determining whether the above limits have been
exceeded, the market value of shares for options granted on a given day shall be
translated from US dollars into pounds sterling at the closing spot rate for
that day in the Wall Street Journal.

       In the event that no exchange rate is given for that day the rate used
shall be that for the previous day on which an exchange rate is given.

5. The option agreement will provide that the Shares in respect of which an
Approved Option is granted will satisfy the conditions of Paragraphs 10 to 14
(inclusive) of Schedule 9 and in particular will be:

       (a) fully paid up;

                                       14

<PAGE>

       (b) not subject to any restrictions other than restrictions which attach
       to all shares of the same class; and

       (c) irredeemable.

6. Shares shall be allotted and issued or transferred pursuant to a notice of
exercise within thirty (30) days of the date of exercise.

7. If an alteration is made to the 1993 UK Approved Sub-Plan or to the Approved
Options themselves, at any time after the 1993 UK Approved Sub-Plan has been
approved by the Inland Revenue under Schedule 9, such alteration shall not be
effective unless and until the alteration has been approved by the Inland
Revenue.

8. Approved Options will, subject to clause 5(a), be granted at the fair market
value of the shares at the date of grant and fair market value shall be
determined in accordance with the provisions of Part VIII of the Taxation of
Chargeable Gains Act 1992 and agreed for the purposes of the 1993 UK Approved
Sub-Plan with -the Inland Revenue Shares Valuation Division on or before that
day. Notwithstanding the above, shares cannot be issued for less than par value.

9. Notwithstanding Section 8(b) of the Plan, payment for shares acquired by
exercise of Approved Options under the UK Approved Sub-Plan will be by cash or
cheque only.

                                       15
<PAGE>

                                   APPENDIX B

                        OPTION GRANTS TO FRENCH EMPLOYEES

       This Appendix B to the Madge Networks N.V. 1993 Stock Plan (the "Plan")
sets forth special rules under which options may be granted to any individual
who is an employee of Madge Networks N.V. or who is employed by a Madge
Subsidiary in France and whose salary is paid in French currency on the date of
the grant. The Committee will determine whether an Employee, Consultant or
Director receives Options under this Appendix B and, having so determined, the
Committee must specify on the Notice of Stock Option Grant that the Option has
been granted under this Appendix B. To the extent the rules in this Appendix B
are not consistent with the provisions of the Plan, this Appendix B shall
govern. To the extent that there is no inconsistency between the provisions of
the Plan and this Appendix B, the provisions of the Plan shall govern.

       Unless otherwise indicated, capitalised terms shall have the definitions
set out in the Plan.

1. Options For Authorised But Unissued Shares Only. Options granted to French-
Employees under the Plan shall be options to subscribe to newly issued Shares
(i.e., authorised but unissued Shares) only, and the Notice of Grant shall
clearly identify each Option as such. Options granted to French Employees shall
in no event be options to purchase reacquired Shares of the Company.

2. Limitations on Eligibility. Options may be granted to French Employees only.
In addition, Options may not be granted to any French Employee who owns more
than ten percent (10%) of the Shares of the Company. For these purposes, "French
Employee" means any salaried employee, the President-Directeur General or any
other Directeur-General of a Madge Subsidiary in France. Moreover, Options may
not be granted to an employee unless he is employed by a company which is a
subsidiary of the Company as defined in Article 8-4 of the French law of 24 July
1966.

3. Fair Market Value. For purposes of this Appendix B only, if the Company's
Common Stock is listed on an established stock exchange or national market
system, Fair Market Value will be computed as the average price of a Share of
Common Stock over the twenty (20) day preceding the date of grant.

4. Grant of options. An option may not be granted in the period of 20 days after
a distribution of dividends or a capital increase. In addition, the total
options granted may not be more than one third of the Shares of the Company.

5. Option Price. The purchase price of the shares of stock covered by an option
shall not be less than ninety-five percent (95%) of the Fair Market Value of the
stock on the date of grant.

6. Exercise by Estate. In the event of exercise by an Optionee's estate, the
post- termination exercise period shall not exceed six (6) months from the date
of the Optionee's death.

7. Adjustments Upon Changes in Capitalisation. The Board of Directors makes
adjustments upon changes in capitalisation under Section 12 of the Plan solely
with respect to sections 175.8 to 174.16 of Decree no. 67-236 of March 23, 1967,
implementing French law no 66-537 of July 24, 1966.

8. Changes. The Board may not change the Plan in a way which affects this Part,
or Options granted under this Part, if the change is inconsistent with French
law and in particular with Sections 174.8 to 174.16 of Decree no. 67-236 of 23
March 1967, implementing French law no. 66-537 of 24 July, 1966.

                                       16
<PAGE>

                                   APPENDIX C

                        OPTION GRANTS TO DUTCH EMPLOYEES

       This Appendix C to the Madge Networks N.V. 1993 Stock Plan (the "Plan")
sets forth special rules under which options may be granted to any individual
who is an employee of Madge Networks N.V. or who is employed in the Netherlands
by any Madge Subsidiary and whose salary is paid in Dutch currency on the date
of the grant. The Committee will determine whether an Employee, Consultant or
Director receives Options under this Appendix C and, having so determined, the
Committee must specify on the Notice of Stock Option Grant that the Option has
been granted under this Appendix C. To the extent the rules in this Appendix C
are not consistent with the provisions of the Plan, this Appendix C shall
govern. To the extent that there is no inconsistency between the provision of
the Plan and this Appendix C, the provisions of the Plan shall govern.

       Unless otherwise indicated, capitalised terms shall have the definitions
set out in the Plan.

1.     Vesting

       Options granted to a Dutch Employee will vest immediately upon grant.

2.     Reimbursement

       If a Dutch Employee ceases to be employed by the Company before the
       fourth anniversary of the Option grant, the Dutch Employee shall be under
       a duty to reimburse the Company a certain part of the benefit enjoyed as
       a result of the shares acquired under the Plan.

       The benefit referred to above shall be either (i) the difference between
       the Option Exercise Price and the Fair Market Value of the shares in
       question at the time the Option is exercised, or (ii) the difference
       between the Option Exercise Price and the Fair Market Value of the shares
       at the time of any disposition by the Dutch Employee of the shares prior
       to termination of the employment, whichever is lower. The number of
       shares to which this reimbursement provision applies (the "Reimbursement
       Shares") shall be computed as follows:

       Total Number of shares -   [(total number of Shares Divided by 48) times
                                  (total number of Months Worked from the date
                                  of grant)]

       provided however, that this provision shall apply to all shares if a
       Dutch Employee ceases to be employed before the first anniversary of the
       date of grant of his or her Option.

       For example, if an Option to purchase 1,000 shares is granted to a Dutch
       Employee on January 1, 1995, with an Option Exercise Price US $15 per
       share, the Dutch Employee exercised all his options in December 1995,
       when the shares had a Fair Market Value of US$ 30 and the employee ceases
       working at the Company effective July 31, 1996, the reimbursement clause
       shall apply to the following number of shares:

                         1,000 - [ 1,000 x 19 ] = 604,2
                                   ----------
                                       48

       Note: The reimbursement clause shall not apply to [ 1,000 x 19 ]
                                                           ----------
                                                               48

                                       17
<PAGE>

       shares, being 395.8 shares. Therefore, if - in above example - the
       employee would have exercised the Option for only 350 shares, the
       Employee would not have to reimburse anything to the Company.

       Escrow

       The Reimbursement Shares, or the cash proceeds of the sale of
       Reimbursement Shares, shall be held in escrow by the Company or its
       agent, until the employee shall no longer be under a duty to reimburse
       the Company a certain part of the benefit enjoyed as a result of those
       shares acquired under the Plan. The employee shall remain fully entitled
       to all dividends declared on the Reimbursement Shares, or interest
       accruing on the cash proceeds of the sales of the Reimbursement Shares.

3.     Terms of Options

       The term of an Option granted to a Dutch Employee shall be no greater
       than five (5) years.

4.     Option Exercise Price

       The per share exercise price for the Shares to be issued pursuant to
       exercise of an Option shall be the Fair Market Value per Share on the
       date of the grant.

5.     Definitions

       a)     "Dutch Employee" shall mean an individual who is an employee of
              Madge Networks N.V. or of a Madge Subsidiary in the Netherlands
              and whose salary is paid in Dutch currency on the date the option
              is granted.

       b)     "Madge Subsidiary" shall mean a company in which Madge Networks
              N.V. has a one-third share (33 1/3%) or more of the equity
              interest or voting shares, directly or indirectly, or a
              corporation of which owns one-third (33 1/3%) or more of the
              equity interest or voting shares, wither directly or indirectly,
              in Madge Networks N.V.

                                       18
<PAGE>

                                   APPENDIX D

                        OPTION GRANTS TO GERMAN EMPLOYEES

       This Appendix D to the Madge Networks N.V. 1993 Stock Plan (the "Plan")
sets forth special rules under which options may be granted to any individual
who is an employee of Madge Networks N.V. or who is employed by a Madge
Subsidiary in Germany and whose salary is paid in German currency on the date of
the grant (a "German Employee"). The Committee will determine whether an
Employee, Consultant or Director receives Options under this Appendix D and,
having so determined, the Committee must specify on the Notice of Stock Option
Grant that the Option has been granted under this Appendix D. To the extent the
rules in this Appendix D are not consistent with the provisions of the Plan,
this Appendix D shall govern. To the extent that there is no inconsistency
between the provisions of the Plan and this Appendix D, the provisions of the
Plan shall govern.

       Unless otherwise indicated, capitalised terms shall have the definitions
set out in the Plan.

1. Voluntary Benefit. The grant of Options under the Plan is a voluntary benefit
that is entirely discretionary to the Company. Neither the Plan nor any Option
granted hereunder shall impose any obligation on the Company or its Subsidiaries
to continue making Option grants to German Employees.

2. Income Tax Treatment. German Employees who receive Options under the Plan are
responsible for payment of any income tax due at the time the option is
exercised. Where appropriate, the Company or its German Subsidiary will withhold
the appropriate tax. In the event that withholding cannot be made due to lack of
funds, the Company has to make a declaration to the financial authorities which
will then contact the employee directly for these purposes.

3. Execution of Receipt by Optionee. Upon receipt of an Option and a copy of the
Plan, each Optionee will be required to execute a receipt. The receipt will
include the Optionee's representations that (i) he has received the Option, the
Plan and any other accompanying documentation, (ii) that he accepts the rules
laid down in such documentation and (iii) any other information that the Board
of Directors of the Company determines is necessary.

                                       19
<PAGE>

                                   APPENDIX E

                      OPTION GRANTS TO SINGAPORE EMPLOYEES

       This Appendix E to the Madge Networks N.V. 1993 Stock Plan (the "Plan")
sets forth special rules under which options may be granted to any individual
who is an employee of Madge Networks N.V. or who is employed by a Madge
Subsidiary in Singapore and whose salary is paid in Singapore currency on the
date of the grant. The Committee will determine whether an Employee, Consultant
or Director receives Options under this Appendix E and, having so determined,
the Committee must specify on the Notice of Stock Option Grant that the Option
has been granted under this Appendix E. To the extent the rules in this Appendix
E are not consistent with the provisions of the Plan, this Appendix E shall
govern. To the extent that there is' no inconsistency between the provisions of
the Plan and this Appendix E, the provisions of the Plan shall govern.

       Unless otherwise indicated, capitalised terms shall have the definitions
set out in the Plan.

1. Exercise by Estate. In the event of death of an Optionee prior to exercise of
an Option, Sections 9(d) and 13(b)(ii) of the Plan shall apply. Notwithstanding
the previous sentence, such Option may be exercised only by the person(s) named
as executor/personal representative in a Singapore grant of letters of
administrator or probate (as the case may be).

2. Method of Payment. If the Optionee is an "Employee" as such term is defined
under Section 27 of the Singapore Employment Act, the method of payment
authorised by the Plan Administrator pursuant to Section 8 of the Plan shall not
include payment by payroll deduction. Such limitation shall not apply to any
Optionee who is not an Employee under the terms of the Act.

                                       20<PAGE>
                                                                     EXHIBIT 4.3

                               MADGE NETWORKS N.V.

                                  1993 EMPLOYEE

                               STOCK PURCHASE PLAN

                                  OCTOBER 2001

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>                                                                        <C>
1. Purpose.................................................................  3

2. Definitions.............................................................  3

3. Eligibility.............................................................  4

4. Offering Periods........................................................  4

5. Participation...........................................................  5

6. Payroll Deductions......................................................  5

7. Grant of Option.........................................................  6

8. Exercise of Option......................................................  7

9. Delivery................................................................  8

10. Automatic Transfer to Low Price Offering Period........................  8

11. Withdrawal; Termination of Employment..................................  8

12. Interest...............................................................  9

13. Stock..................................................................  9

14. Administration.........................................................  9

15. Designation of Beneficiary............................................. 10

16. Transferability........................................................ 10

17. Use of Funds........................................................... 10

18. Reports................................................................ 10

19. Adjustments............................................................ 10

20. Amendment or Termination............................................... 12

21. Notices................................................................ 12

22. Conditions Upon Issuance of Shares..................................... 12

23. Term of Plan........................................................... 13

</TABLE>

                                       2
<PAGE>

                               MADGE NETWORKS N.V.
                        1993 EMPLOYEE STOCK PURCHASE PLAN

     1. Purpose. The purpose of the Plan is to provide employees of Madge
Networks N.V.'s Designated Subsidiaries with an opportunity to purchase Common
Stock of Madge Networks N.V. through accumulated payroll deductions. It is the
intention of Madge Networks N.V. to have the Plan qualify as an "Employee Stock
Purchase Plan" under Section 423 of the Internal Revenue Code of 1986, as
amended. The provisions of the Plan shall, accordingly, be construed so as to
extend and limit participation in a manner consistent with the requirements of
that section of the Code.

     2. Definitions.

     (a) "Board" means the Board of Directors of Madge Networks N.V..

     (b) "Code" means the U.S. Internal Revenue Code of 1986, as amended.

     (c) "Common Stock" means the Common Stock of Madge Networks N.V.

     (d) "Company" means Madge Networks N.V., a Netherlands corporation and
(where the context so requires), its Designated Subsidiaries.

     (e) "Compensation" means all regular straight time earnings, and all
payments for overtime, shift premium, incentive compensation, incentive
payments, bonuses, commissions or other compensation.

     (f) "Designated Subsidiaries" means the Subsidiaries which have been
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan. Designated Subsidiaries are listed in Appendix I to the
Plan.

     (g) "Employee" means any individual who is an employee of the Company for
purposes of U.S. income tax withholding under the Code whose customary
employment with a Designated Subsidiary is at least twenty (20) hours per week
and more than five (5) months in any calendar year. For purposes of the Plan,
the employment relationship shall be treated as continuing intact while the
individual is on sick leave or other leave of absence approved by the Company.
Where the period of leave exceeds ninety (90) days and the individual's right to
re employment is not guaranteed either by statute or by contract, the employment
relationship will be deemed to have terminated on the 91st day of such leave.

     (h) "Exercise Date" means the date one (1) day prior to the date six (6)
months, twelve (12) months, eighteen (18) months or twenty-four (24) months
after the Offering Date on each Offering Period.

                                       3
<PAGE>

     (i) "Exercise Period" means a period commencing on an Offering Date or on
the day after an Exercise Date and terminating one (1) day prior to the date six
(6) months later.

     (j) "Offering Date" means the first day of each Offering Period of the
Plan.

     (k) "Offering Period" means a period of twenty-four (24) months consisting
of four (4) six-month Exercise Periods during which options granted pursuant to
the Plan may be exercised.

     (l) "Plan" means this 1993 Employee Stock Purchase Plan.

     (m) "Subsidiary" means a corporation, domestic or foreign, of which not
less than fifty percent (50%) of the voting shares are held by Madge
Networks N.V. or a Subsidiary, whether or not such corporation now exists or is
hereafter organized or acquired by Madge Networks N.V. or a Subsidiary.

     (n) "Trading Day" means a day on which the national stock exchange or the
National Association of Securities Dealers Automated Quotation (NASDAQ) System
or any other market upon which the Common Stock are traded, is open for trading.

     3. Eligibility.

     (a) Any Employee as defined in Section 2 who shall be employed by the
Company on the date his or her participation in the Plan is effective shall be
eligible to participate in the Plan, subject to limitations imposed by Section
423(b) of the Code.

     (b) Any provisions of the Plan to the contrary notwithstanding, no Employee
shall be granted an option under the Plan (i) if, immediately after the grant,
such Employee (or any other person whose stock would be attributed to such
Employee pursuant to Section 424(d) of the Code) would own stock and/or hold
outstanding options to purchase stock possessing five percent (5%) or more of
the total combined voting power or value of all classes of stock of the Company
or of any Subsidiary of the Company, or (ii) which permits his or her rights to
purchase stock under all employee stock purchase plans of the Company and its
Subsidiaries to accrue at a rate which exceeds twenty-five thousand dollars
($25,000) of fair market value of such stock (determined at the time such option
is granted) for each calendar year in which such option is outstanding at any
time.

     4. Offering Periods. The Plan shall be implemented by overlapping
twenty-four (24) month Offering Periods with a new Offering Period commencing on
the first day of February and August of each year, the first of which shall
commence on

                                       4

<PAGE>

February 1, 1994. The Plan shall continue thereafter until terminated in
accordance with Section 20 hereof. Subject to the requirements of Section 20,
the Board shall have the power to change the duration of Offering Periods with
respect to future offerings without shareholder approval if such change is
announced at least fifteen (15) days prior to the scheduled beginning of the
first Offering Period to be affected. For these purposes, the automatic transfer
to a "Low Price Offering Period" described in Section 10 shall not be a change
in the duration of an Offering Period. Furthermore, the Board may adjust the
duration of the first Offering Period (up to but not exceeding 27 months) to
reflect the timing of the Plan's implementation, provided that such adjustment
is announced to Participants prior to the first Exercise Date under the Plan.

     5. Participation.

     (a) An eligible Employee may become a participant in the Plan by completing
a enrollment agreement authorizing payroll deductions on a form provided by the
Company and filing it with the Company's payroll office at least ten (10)
business days prior to the applicable Offering Date, unless a later time for
filing the enrollment agreement is set by the Board for all eligible Employees
with respect to a given offering.

     (b) Payroll deductions for a participant shall commence on the first
payroll following the Offering Date and shall end on the Exercise Date of the
offering to which such authorization is applicable, unless sooner terminated by
the participant as provided in Section 11.

     6. Payroll Deductions.

     (a) At the time a participant files his or her enrollment agreement, he or
she shall elect to have payroll deductions made on each payday during the
Offering Period in an amount not exceeding ten percent (10%) nor less than one
percent (1%) of his or her Compensation. The aggregate of such payroll
deductions during any Offering Period shall not exceed ten percent (10%) of his
or her aggregate Compensation during said Offering Period.

     (b) All payroll deductions made by a participant shall be credited to his
or her account under the Plan and will be withheld in whole percentages only. A
participant may not make any additional payments into such account.

     (c) A participant may discontinue his or her participation in the Plan as
provided in Section 11, or may decrease (but not increase) the rate or amount of
his or her payroll deductions during the Offering Period (within the limitations
of Section 6(a)) by completing and filing with the Company a new enrollment
agreement authorizing a decrease in the rate or amount of payroll deductions;
provided, however, that a participant may not decrease the rate or amount of his
or her payroll deductions more than once in any one month. The change in rate
shall be effective fifteen (15) days following the Company's receipt of the new
authorization or such shorter period as may be permitted by the Company. Subject
to the limitations of Section 6(a), a participant's

                                       5
<PAGE>

enrollment agreement shall remain in effect for successive Offering Periods
unless revised as provided herein or terminated as provided in Section 11.

     (d) Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 3(b) herein, a participant's payroll
deductions may be decreased to zero percent (0%) at such time during any
Exercise Period which is scheduled to end during the current calendar year that
the aggregate of all payroll deductions accumulated with respect to such
Exercise Period and any other Exercise Period ending within the same calendar
year equal twenty-one thousand two hundred fifty dollars ($21,250). Payroll
deductions shall recommence at the rate provided in such participant's
enrollment agreement at the beginning of the first Exercise Period which is
scheduled to end in the following calendar year, unless terminated by the
participant as provided in Section 11.

     (e) At the time the option is exercised, in whole or in part, or at the
time some or all of the Company's Common Stock issued under the Plan is disposed
of, the participant must make adequate provision for the Company's federal,
state or other tax withholding obligations, if any, which arise upon the
exercise of the option or the dispositions, if any, which arise upon the
exercise of the option or the disposition of the Common Stock. At any time, the
Company may, but will not be obligated to, withhold from the participant's
Compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Employee.

     (f) Options granted to persons subject to Section 16(b) of the Securities
Exchange Act of 1934, as amended (the "Act")("Insiders") are intended to qualify
for the maximum exemption from Section 16 of the Act with respect to Plan
transactions. Accordingly, notwithstanding Paragraph 6(c) above, participating
Insiders shall make an irrevocable election to purchase stock on any Exercise
Date at least six (6) months prior to such Exercise Date. Such election may not
be decreased during the affected Exercise Period; provided, however, that an
Insider may change his participation level for subsequent Exercise Periods by
making an irrevocable election at least six (6) months prior to any Exercise
Date.

     7. Grant of Option.

     (a) On the Offering Date of each Offering Period, each eligible Employee
participating in such Offering Period shall be granted an option to purchase on
each Exercise Date during such Offering Period (at the per share option price)
up to a number of shares of the Company's Common Stock determined by dividing
such Employee's payroll deductions accumulated prior to such Exercise Date and
retained in the Participant's account as of the Exercise Date by (x) the lower
of (i) eighty-five percent (85%) of the fair market value of a share of the
Company's Common Stock on the Offering Date or (ii) eighty-five percent (85%) of
the fair market value of a share of the Company's Common Stock on the Exercise
Date or (y) the nominal value of a share

                                       6
<PAGE>

of the Company's Common Stock at the Exercise Date in the event that the lower
of (i) and (ii) in (x) is less than such nominal value; provided, however, that
the maximum number of shares an Employee may purchase during each Offering
Period shall be determined at the Offering Date by dividing fifty thousand
dollars ($50,000) by the fair market value of a share of the Company's Common
Stock on the Offering Date, and provided further that such purchase shall be
subject to the limitations set forth in Sections 3(b) and 13 hereof. Exercise of
each option during the Offering Period shall occur as provided in Section 8,
unless the participant has withdrawn pursuant to Section 11, and each option
shall expire at midnight on the last day of the applicable Exercise Period. Fair
market value of a share of the Company's Common Stock shall be determined as
provided in Section 7(b) herein.

     (b) The option price per share of the shares offered in a given Exercise
Period shall be the lower of: (i) eighty-five percent (85%) of the fair market
value of a share of the Common Stock of the Company on the Offering Date; or
(ii) eighty-five percent (85%) of the fair market value of a share of the Common
Stock of the Company on the Exercise Date provided that where the lower of (i)
and (ii) represents a price per share which is less than the nominal value of a
share of the Common Stock at the Exercise Date then the Company shall refund to
each participant the accumulated payroll deductions in his/her account in the
next salary payment or, if requested in writing by a participant, shall purchase
shares at the nominal value of a share of the Company's Common Stock at the
Exercise Date. The fair market value of the Company's Common Stock on a given
date shall be determined by the Board in its discretion; provided, however, that
where there is a public market for the Common Stock, the fair market value per
share shall be the closing price of the Common Stock for such date, as reported
by the NASDAQ National Market System, or, Nasdaq Smallcap Market System in the
event the Common Stock is listed on a stock exchange or a regulated quotation
service, the fair market value per share shall be the closing price on such
exchange on such date, as reported in the Wall Street Journal or as listed by a
broker in the event that the Wall Street Journal does not contain such quotes.
In the event the Offering Date or the Exercise Date occurs on a weekend or legal
holiday, the fair market value shall be based on the closing bid price on the
next Trading Day.

     8. Exercise of Option. Unless a participant withdraws from the Plan as
provided in Section 11, his or her option for the purchase of shares will be
exercised automatically on each Exercise Date of the Offering Period, and the
maximum number of full shares subject to option shall be purchased for such
participant at the applicable option price with the accumulated payroll
deductions in his or her account. No fractional shares will be purchased and any
amount remaining in the participant's account after an Exercise Date shall be
held in the account until the next Exercise Date of the Offering Period, unless
the Offering Period has been oversubscribed or has terminated with such Exercise
Date, in which case such amount shall be refunded to the participant. During a
participant's lifetime, a participant's option to purchase shares hereunder is
exercisable only by him or her.

                                       7
<PAGE>
     9. Delivery. As promptly as practicable after the Exercise Date of each
Exercise Period, the Company shall arrange the delivery to each participant, as
appropriate, of a certificate representing the shares purchased upon exercise of
his or her option. Any cash remaining to the credit of a participant's account
under the Plan after a purchase by him or her of shares at the termination of
each Exercise Period which is insufficient to purchase a full share of Common
Stock of the Company shall be applied to the participant's account for the next
Exercise Period.

     10. Automatic Transfer to Low Price Offering Period. In the event that the
fair market value of the Company's Common Stock is lower on the first day of any
Exercise Period in an Offering Period than it was on the Offering Date for that
Offering Period, all Employees participating in the Plan on that day shall be
deemed to have withdrawn from the Offering Period immediately after the exercise
of their options on the Exercise Date of the preceding Exercise Period and to
have enrolled as participants in the new Offering Period which begins the next
day (the "Automatic Transfer").

     11. Withdrawal; Termination of Employment.

     (a) A participant may withdraw all but not less than all the payroll
deductions credited to his or her account and not yet used to exercise his or
her option under the Plan at any time by giving written notice to the Company
pursuant to a form to be provided by the Company. All of the participant's
payroll deductions credited to his or her account will be paid to such
participant as promptly as practicable after receipt of notice of withdrawal and
such participant's remaining option or options for the Offering Period will be
automatically terminated, and no further payroll deductions for the purchase of
shares will be made during the Offering Period. If a participant withdraws from
an Offering Period, payroll deductions will not resume at the beginning of the
succeeding Offering Period unless the participant delivers to the Company a new
enrollment agreement.

     (b) Upon a participant's ceasing to be an Employee prior to an Exercise
Date for any reason, including retirement or death, or upon termination of a
participant's employment relationship (as described in Section 2(g)), the
payroll deductions credited to such participant's account during the Exercise
Period but not yet used to exercise the option will be returned to such
participant or, in the case of his or her death, to the person or persons
entitled thereto under Section 15, and such participant's remaining option or
options will be automatically terminated.

     (c) In the event an Employee fails to remain an Employee of the Company for
at least twenty (20) hours per week during an Offering Period in which the
Employee is a participant, he or she will be deemed to have elected to withdraw
from the Plan and the payroll deductions credited to his or her account will be
returned to such participant and such participant's remaining option or options
terminated.

                                       8
<PAGE>

     (d) A participant's withdrawal from an Offering Period will not have any
effect upon his or her eligibility to participate in any similar plan which may
hereafter be adopted by the Company or in succeeding Offering Periods which
commence after the participant withdraws.

     12. Interest. No interest shall accrue on the payroll deductions of a
participant in the Plan.

     13. Stock.

     (a) The maximum number of shares of the Company's Common Stock which shall
be made available for sale under the Plan shall be 4,100,000* shares, subject to
adjustment upon changes in capitalization of the Company as provided in Section
19. If on a given Exercise Date the number of shares with respect to which
options are to be exercised exceeds the number of shares then available under
the Plan (after deduction of all shares for which options have been exercised or
are then outstanding), the Company shall make a pro rata allocation of the
shares remaining available for option grant in as uniform a manner as shall be
practicable and as it shall determine to be equitable. In such event, the
Company shall give written notice of such reduction of the number of shares
subject to the option to each Employee affected thereby and shall similarly
reduce the rate of payroll deductions, if necessary.

     (b) The participant will have no interest or voting right in shares covered
by his or her option until such option has been exercised.

     (c) Shares to be delivered to a participant under the Plan will be
registered in the name of the participant or in the name of the participant and
his or her spouse.

     14. Administration. The Plan shall be administered by the Board of
Directors of the Company or a committee appointed by the Board. The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan. Every finding, decision and
determination made by the Board or its committee shall, to the full extent
permitted by law, be final and binding upon all parties. Members of the Board
who are eligible Employees are permitted to participate in the Plan, provided
that:

     (a) Members of the Board who are eligible to participate in the Plan may
not vote on any matter affecting the administration of the Plan or the grant of
any option pursuant to the Plan.

     (b) If a Committee is established to administer the Plan, no member of the
Board who is eligible to participate in the Plan may be a member of the
Committee.

--------
* As amended by the Board of Directors April 28, 1999 and July [ ], 2001.

                                       9
<PAGE>

     15. Designation of Beneficiary.

     (a) A participant may file a written designation of a beneficiary who is to
receive any shares and cash, if any, from the participant's account under the
Plan in the event of such participant's death subsequent to the end of the
Offering Period but prior to delivery to him or her of such shares and cash. In
addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant's account under the Plan in the event
of such participant's death prior to the Exercise Date of the Offering Period.

     (b) Such designation of beneficiary may be changed by the participant at
any time by written notice. In the event of the death of a participant and in
the absence of a beneficiary validly designated under the Plan who is living at
the time of such participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its discretion, may deliver such shares and/or
cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.

     16. Transferability. Neither payroll deductions credited to a participant's
account nor any rights with regard to the exercise of an option or to receive
shares under the Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and distribution
or as provided in Section 15 hereof) by the participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect,
except that the Company may treat such act as an election to withdraw funds from
an Offering Period in accordance with Section 11.

     17. Use of Funds. All payroll deductions received or held by the Company
under the Plan may be used by the Company for any corporate purpose, and the
Company shall not be obligated to segregate such payroll deductions.

     18. Reports. Individual accounts will be maintained for each participant in
the Plan. Statements of account will be given to participating Employees
annually, which statements will set forth the amounts of payroll deductions, the
per share purchase price, the number of shares purchased and the remaining cash
balance, if any.

     19. Adjustments. Subject to any required action by the shareholders of the
Company, the number of shares of Common Stock covered by each option under the
Plan which has not yet been exercised and the number of shares of Common Stock
which have been authorized for issuance under the Plan but have not yet been
placed under option (collectively, the "Reserves") as well as the price per
share of Common Stock covered by each option under the Plan which has not yet
been exercised, shall be proportionately adjusted for (i) any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, (ii) any other increase or

                                       10

<PAGE>

decrease in the number of shares of Common Stock effected without receipt of any
consideration by the Company, or (iii) any other transaction with respect to
Common Stock to which Section 424(a) of the Code applies; provided, however,
that conversion of any convertible securities of the Company shall not be deemed
to have been "effected without receipt of consideration." Such adjustment shall
be made by the Board, whose determination in that respect shall be final,
binding and conclusive. Except as expressly provided herein, no issue by Madge
Networks N.V. of shares of stock of any class, or securities convertible into
shares of stock of any class, shall affect, and no adjustment by reason thereof
shall be made with respect to, the number or price of shares of Common Stock
subject to an option.

     In the event of the proposed dissolution or liquidation of Madge Networks
N.V., the Offering Period will terminate immediately prior to the consummation
of such proposed action, unless otherwise provided by the Board. In the event of
a proposed sale of all or substantially all of the assets of Madge Networks
N.V., or the merger of Madge Networks N.V. with or into another corporation,
each option under the Plan shall be assumed or an equivalent option shall be
substituted by such successor corporation or a parent or subsidiary of such
successor corporation, unless the Board determines, in the exercise of its sole
discretion and in lieu of such assumption or substitution, to shorten the
Offering Period then in progress by setting a new Exercise Date (the "New
Exercise Date"). If the Board shortens the Offering Period then in progress in
lieu of assumption or substitution in the event of a merger or sale of assets,
the Board shall notify each participant in writing, at least thirty (30) days
prior to the New Exercise Date, that the Exercise Date for his or her option has
been changed to the New Exercise Date and that his or her option has been
changed to the New Exercise Date and that his or her option will be exercised
automatically on the New Exercise Date, unless prior to such date he or she has
withdrawn from the Offering Period as provided in Section 11. For purposes of
this paragraph, an option granted under the Plan shall be deemed to be assumed
if, following the sale of assets or merger the option confers the right to
purchase, for each share of option stock subject to the option immediately prior
to the sale of assets or merger the consideration (whether stock, cash or other
securities or property) received in the sale of assets or merger by holders of
Common Stock for each share of Common Stock held on the effective date of the
transaction (and if such holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
shares of Common Stock); provided, however, that if such consideration received
in the sale of assets or merger was not solely common stock of the successor
corporation or its parent (as defined in Section 424(e) of the Code), the Board
may, with the consent of the successor corporation and the participant, provide
for the consideration to be received upon exercise of the option to be solely
common stock of the successor corporation or its parent equal in fair market
value to the per share consideration received by holders of Common Stock in the
sale of assets or merger.

     The Board may, if it so determines in the exercise of its sole discretion,
also make provision for adjusting the reserves, as well as the price per share
of Common Stock covered by each outstanding option, in the event that Madge
Networks N.V.

                                       11

<PAGE>

effects one or more reorganizations, recapitalizations, rights offerings or
other increases or reductions of shares of its outstanding Common Stock, and in
the event of Madge Networks N.V. being consolidated with or merged into any
other corporation.

     20. Amendment or Termination.

     (a) The Board may at any time and for any reason terminate or amend the
Plan. Except as provided in Section 19, no such termination can affect options
previously granted, provided that an Offering Period may be terminated by the
Board on any Exercise Date if the Board determines that the termination of the
Plan is in the best interests of Madge Networks N.V. and its shareholders.
Except as provided in Section 19, no amendment may make any change in any option
theretofore granted which adversely affects the rights of any participant. To
the extent necessary to comply with Rule 16b-3 under the Securities Exchange Act
of 1934, as amended, or under Section 423 of the Code (or any successor rule or
provision or any other applicable law or regulation), the Company shall obtain
shareholder approval in such a manner and to such a degree as required.

     (b) Without shareholder consent and without regard to whether any
participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Board (or its committee) determines in its sole discretion advisable
which are consistent with the Plan.

     21. Notices. All notices or other communications by a participant to the
Company under or in connection with the Plan shall be deemed to have been duly
given when received in the form specified by the Company at the location, or by
the person, designated by the Company for the receipt thereof.

     22. Conditions Upon Issuance of Shares. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements
of any stock exchange or NASDAQ regulated system upon which the shares may then
be quoted, and shall be further subject to the approval of counsel for the
Company with respect to such compliance.

                                       12

<PAGE>

     As a condition to the exercise of an option, the Company may require the
person exercising such option to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without any
present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.

     23. Term of Plan. The Plan shall become effective upon the earlier to occur
of its adoption by the Board or its approval by the shareholders of the Company.
It shall continue for a term of twenty (20) years unless sooner terminated under
Section 20.

                                       13
<PAGE>

                                   APPENDIX I

Designated Subsidiaries

Madge Networks (TR) B.V.
Madge Networks Limited
Madge Networks Asia Pacific B.V.
Madge Networks (Africa) Pty Ltd
Madge Networks (New Jersey) Inc
Madge Networks SA
Madge Networks GmbH
Madge Networks Inc
Madge Oceania Pty Limited
Madge.web Inc
Madge.web International (C.I.) Limited
Madge.web Hong Kong Limited
Madge.web Japan Co. Ltd
Madge Technology N.V.
Madge Group Services Limited
Madge Logistics Limited
Madge Networks Srl
Madge Networks Sl
Madge (Malaysia) Sdn Bhd
Madge Networks B.V.
Madge Japan KK
Madge Networks (UK) Holdings Ltd
Madge Networks US Holdings Inc
Madge International Holdings Ltd
Madge.connect Holdings B.V.
Madge.web N.V.

(Other Subsidiaries of the Company are included unless explicitly excluded by
the Board.)

                                       14

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