Document:

DATED 12TH APRIL 2000

                            WARDELL SECURITY LIMITED
                               (IN ADMINISTRATION)
                                                                             (1)
                      CHARLES CHRISTOPHER STEWART MACMILLAN
                                       and
                               DERMOT JUSTIN POWER
                                                                             (2)
                                       AND
                        EURO TELECOM CORPORATION LIMITED
                                                                             (3)

                                   ----------
                                    AGREEMENT
                             FOR THE SALE OF ASSETS
                                   ----------

<PAGE>

                                    CONTENTS
                                    --------
Clause                              Heading                                 Page

1        Definitions                                                     2
2        Sale and Purchase                                               4
3        The Consideration                                               4
4        Completion                                                      5
5        Excluded Assets                                                 6
6        Continuing the Business                                         7
7        The Name                                                        8
8        Accounting for the Debts                                        8
9        Records etc                                                     9
10       Exclusion of Warranties                                         9
11       Exclusion of Personal Liability                                10
12       Employees                                                      11
13       Apportionment                                                  12
14       General                                                        12
15       Waiver                                                         13
16       Provisions to Survive Completion                               14
17       Notices                                                        14
18       Publicity                                                      15
19       Counterparts                                                   15

<PAGE>

THIS AGREEMENT is made on 12th April 2000.

BETWEEN:

(1)      WARDELL SECURITY LIMITED (No. 2439972) whose registered office is at
         3rd Floor Peter House St Peter's Square Manchester Ml 5AB ("THE
         VENDOR") acting by the Administrators (as hereinafter defined);

(2)      CHARLES CHRISTOPHER STEWART MACMILLAN and DERMOT JUSTIN POWER both of
         BDO Stoy Hayward CR1 Peter House St Peter's Square Manchester Ml SAB
         (together "the Administrators");

(3)      EURO TELECOM CORPORATION LIMITED (No. 03184949) whose registered office
         is at Robinson Linell Embankment House Acorn Business Park Woodseats
         Close Sheffield South Yorkshire 58 0TB ("THE PURCHASER");

WHEREAS:

(A)      By an Administration Order ("THE ADMINISTRATION ORDER") in the High
         Court of Justice Chancery Division Manchester District Registry dated
         31st January 2000 ("THE APPOINTMENT") in proceedings, the short title
         and reference to the record of which is AO No. 1043 of 2000 In The
         Matter of Wardell Security Limited, Charles Christopher Stewart
         MacMillan and Dermot Justin Power ("THE ADMINISTRATORS") were appointed
         Joint Administrators of the Vendor.
<PAGE>

(C)      The Vendor acting by the Administrators has agreed to sell and the
         Purchaser has agreed to purchase the Vendor's business and certain of
         its assets upon the terms and subject to the conditions set out in this
         Agreement.

IT IS HEREBY AGREED:

         DEFINITIONS
         -----------

1.1      In this Agreement unless the context otherwise requires the following
         words and expressions shall have the following meanings:

         "ADMINISTRATORS' SOLICITORS" means Addleshaw Booth & Co of 100
         Barbirolli Square Manchester M2 3AB (Ref OABA\KJD\101743-94);

         "ASSETS" means the Contracts and the Goodwill;

         "BUSINESS" means the business of providing security services carried on
         by the Vendor at the Property at the Transfer Date;

         "COMPLETION" means the completion of the sale and purchase hereby
         agreed;

         "CONTRACTS" means the benefit and burden of all contracts and
         engagements entered into and of all orders placed by or with the Vendor
         or the Administrators on behalf of the Vendor in relation to the
         Business subsisting but uncompleted on the Transfer Date insofar as the
         same are capable of being assigned;

         "DEBTS" means the book and other debts and monetary claims owing to the
         Vendor as at the Transfer Date whether or not in respect of the
         Business and whether or not yet due or payable or invoiced

<PAGE>

         "EXCLUDED ASSETS" means the property rights and assets of or used by
         the Vendor which are not expressly sold pursuant to this Agreement
         including but not limited to those set out in clause 5;

         "GOODWILL" means the goodwill of the Vendor in connection with the
         Business comprising:

         (a)      exclusive liberty for the Purchaser to represent itself as
                  carrying on the Business in succession to the Vendor together
                  with the non-exclusive right (so far as the Vendor may
                  lawfully grant the same) to use the Name as a trading name;

         (b)      liberty to negotiate to take up all orders and enquiries
                  relating to the Business which have not been accepted by the
                  Vendor as at the date hereof

         (c)      liberty to use all customer lists and (in so far as not
                  referring to the Vendor and not referring to the rights or
                  property of any other person).

         "NAME" means the words "Wardell Security";

         "PROPERTY' means the properties situated at Bay 11 Appleton Thorn
         Trading Estate Warrington and Part 8th Floor North Wing Trafford House
         Chester Road Manchester;

         "RECORDS" means the Trading Records and the Statutory Books;

         "REGULATIONS" means the Transfer of Undertakings (Protection of
         Employment) Regulations 1981;

         "STATUTORY BOOKS' means the books and records which the Vendor is
         required to maintain under the Companies Act 1985;
<PAGE>

         "TRADING RECORDS" means the accounts, purchase and sale records, lists
         of orders and other books and records of the Vendor (other than the
         Statutory Books) used in the carrying on of the Business;

         "TRANSFER DATE" means the time of Completion as provided in clause 4.1.

1.2      References to statutory provisions shall be deemed to include all
         orders, regulations, statutory instruments and similar matter made in
         connection therewith or pursuant thereto as well as any modification or
         re-enactment thereof for the time being in force and shall be deemed to
         include such provisions of earlier legislation (as from time to time
         amended) which have been re-enacted (with or without modification) or
         replaced (directly or indirectly) by such Act of Parliament Treaty or
         provision;

1.3      References to a living person shall if the context so permits extend to
         his personal representatives and be enforceable accordingly;

1.4      Section 61 Law of Property Act 1925 shall apply to this Agreement;

1.5      The headings herein are for ease of reference and shall not affect
         construction;

1.6      References to Recitals, Clauses and Schedules are to be construed as
         references to the recitals and clauses of, and schedules to, this
         Agreement.

2         SALE AND PURCHASE
          -----------------

2.1      The Vendor shall sell and the Purchaser shall purchase whatever right,
         title and interest (if any) the Vendor may have in the Assets subject
         to all liens, obligations, licences and encumbrances relating thereto
         on the terms and for the consideration set out in this Agreement.
<PAGE>

3        THE CONSIDERATION
         -----------------

3.1      The aggregate consideration for the sales and purchases of the Assets
         shall be the sum of(pound)125,000 plus Value Added Tax (if any).

3.2      Subject to clauses 3.3, and 3.4 of this clause the Purchaser shall not
         pay any Value Added Tax upon the consideration referred to in clause
         3.1 the parties being of the view that this is a transaction which by
         virtue of paragraph 12 Value Added Tax (Special Provisions) Order 1995
         SI. No.1995/1268 is not to be treated as either a supply of goods or a
         supply of services;

3.3      If and to the extent to which all or any of the Assets are for any
         reason subject to Value Added Tax then the Purchaser shall against
         receipt of a Value Added Tax invoice pay to the Administrators on
         behalf of the Vendor forthwith on demand the Value Added Tax due
         relative to such sale together with all interest and penalties which
         may be payable thereon; and

3.4      The Purchaser undertakes and warrants that it is registered or will as
         a result of this transaction become registerable for Value Added Tax
         purposes and that it intends to use the Assets to carry on with effect
         from the Transfer Date the same kind of business as the Business.

3.5      The Purchaser shall be solely responsible for all stamp duty payable on
         this Agreement or arising out of it.

4        COMPLETION
         ----------

4.1      Completion shall take place at the offices of the Administrators
         Solicitors immediately after exchange of this Agreement when:

         (a)      the Purchaser shall pay to the Administrators on behalf of the
                  Vendor the sum of (pound)125,000 being the monetary
                  consideration for the sale and purchase of the Assets;

         (b)      the Vendor shall leave at the Property all such items of the
                  Assets as are transferable by delivery; and

         (c)      neither the Vendor nor the Administrators shall have any
                  obligation to the Purchaser to identify or deliver any such
                  items of the Assets to the Purchaser or to take any positive
                  steps whatsoever (including but not limited to seeking or
                  obtaining any requisite consent of any person not party
                  hereto) relating thereto to the enable the Purchaser to obtain
                  the same.

5        EXCLUDED ASSETS
         ---------------

5.1      It is agreed and declared (for the avoidance of doubt) that any assets
         or items owned by or in the possession of the Vendor other than the
         Assets are excluded from the sale under this Agreement. In particular
         but without prejudice to the generality of the foregoing the following
         assets or items owned by or in the possession of the Vendor are amongst
         the Excluded Assets:

         (a)      The Debts and all guarantees, indemnities, securities, rights
                  of retention of title and liens for the same;

         (b)      All deposits, prepayments, cheques, bills, notes or securities
                  received by the Vendor or the Administrators on behalf of the
                  Vendor on or before the Transfer Date and any cash in hand and
                  at bank;

         (c)      Any claim or potential claim under any insurance arising from
                  any act occurring on or before the date hereof;

         (d)      Any interest of the Vendor in any freehold or leasehold
                  property;

         (e)      The Statutory Books and the Trading Records;
<PAGE>

         (f)      The interest of the Vendor in any motor vehicles or other
                  chattel assets;

         (g)      The benefit of all agreements which are not assignable or of
                  which a purported assignment would be a breach or would
                  constitute an event of default or termination;

(h)               All investments in shares or securities of the Vendor
                  (including shares and securities and other rights of
                  whatsoever nature of the Vendor in subsidiaries (if any) and
                  all moneys from time to time owing to the Vendor from such
                  subsidiaries);

         (i)      Any interest the Vendor may have in or to any pension fund(s);

         (j)      All computer software (if any) of the Vendor;

         (k)      Any third party items;

         (l)      All other items or assets of the Vendor not specifically
                  mentioned in clause 2 of this Agreement.

6        CONTINUING THE BUSINESS
         -----------------------

6.1      The Purchaser hereby undertakes with the Vendor and the Administrators
         at the Purchasers expense:

6.2

         (a)      to complete in a proper and workmanlike manner and meet all
                  liabilities in connection with the Contracts and to indemnify
                  the Vendor and the Administrators and their respective estates
                  and effects against all, obligations, liabilities, actions,
                  proceedings, costs, expenses, claims, demands, losses and
                  outgoings of whatsoever nature or description arising out of
                  or by virtue of the Contracts or of any breach or
                  non-observance by the Purchaser of the Vendor's obligations
                  under the Contracts or of the Purchaser's obligations under
                  this Agreement;
<PAGE>

         (b)      To keep the Vendor and the Administrators and their respective
                  estates and effects fully indemnified against all losses
                  proceedings claims liabilities costs and expenses whatsoever
                  in respect of any act omission neglect or default by the
                  Purchaser in connection with the Property the Business or the
                  Assets or any of them or in respect of the use of the Assets
                  or any of them.

7        THE NAME
         --------

7.1      Without compulsion on the Vendor or the Administrators to change the
         name of the Vendor it is hereby agreed that neither the Vendor nor the
         Administrators shall object to the use by the Purchaser of the Name as
         or in a trading name of the Purchaser.

8        ACCOUNTING FOR THE DEBTS
         ------------------------

8.1      The Purchaser undertakes forthwith to pay over to the Administrators
         all monies received by it due to the Vendor or the Administrators. The
         Purchaser acknowledges that all such monies are received by it as
         trustee for the Vendor and that if for any reason it is not possible to
         pay any such monies direct to the Administrators then such monies shall
         be paid by the Purchaser into a separate bank account; and

8.2      For the avoidance of doubt the Purchaser acknowledges that:-

         (a)      all monies received by the Purchaser on or after the Transfer
                  Date which shall not have been attributed by a payer either to
                  the Debts or the Purchaser's debts shall be attributed to the
                  Debts; and

         (b)      all moneys owing to the Vendor for goods delivered or services
                  provided and/or invoiced to any customer of the Business on or
                  before the Transfer Date shall continue to belong to the
                  Vendor and the Purchaser shall not be entitled to recover from
                  the Vendor or the Administrators any deposits or payments by
                  customers prior to the Transfer Date.
<PAGE>

9        RECORDS ETC
         -----------

9.1      If the Vendor shall leave any of the Records or any books, files or
         other documents not included in this sale in the possession of the
         Purchaser then the Purchaser hereby acknowledges and agrees that they
         are the property of the Vendor and will not be removed from the
         possession of the Purchaser and the Purchaser permits the Vendor and/or
         the Administrators and their respective servants and agents access to
         such Records, books, files or other documents in order to inspect deal
         with or remove the same.

10       EXCLUSION OF WARRANTIES
         -----------------------

10.1     The Purchaser admits that the Purchaser has inspected and made all
         investigations it wishes concerning the Assets and that the Purchaser
         enters into this Agreement solely as a result of that inspection and
         investigation and on the basis of the terms of this Agreement and not
         in reliance upon representations or warranties whether written or oral
         express or implied made by or on behalf of the Vendor or the
         Administrators or their employees or any agents or representatives
         thereof or any of them;

10.2     No warranty or representation on the part of the Vendor or the
         Administrators or their staff or any agents or representatives thereof
         or any of them as to the title, state, quality, quantity, description
         or fitness of the Assets or any of them is given or to be implied by
         this Agreement nor by anything said or written by or on behalf of the
         Vendor or the Administrators or their staff or any agents or
         representatives thereof or any of them either before during or
         subsequent to the negotiations between the parties hereto;

10.3     So far as it is permissible by law to do so any statutory or common law
         warranties, representations guarantees or conditions that might
         otherwise be implied as to the title, state, quality, quantity
         description or fitness of the Assets or any of them are hereby
         expressly excluded;
<PAGE>

10.4     The Purchaser acknowledges that it has satisfied itself, or has had the
         opportunity of satisfying itself as to the accuracy of the schedules to
         this Agreement and that no error or omission as to the title, state,
         quality, quantity, description or fitness of the Assets or any of them
         shall invalidate this sale and purchase or be the subject of any claim
         by the Purchaser; and

10.5     Each of the sub-clauses hereinbefore contained shall be construed
         separately.

11       EXCLUSION OF PERSONAL LIABILITY
         -------------------------------

11.1     The Administrators are party to this Agreement solely for the purpose
         of receiving the benefit of the indemnities exclusions and other
         provisions in their favour herein contained. Notwithstanding that the
         negotiation for this Agreement may have been conducted and that the
         same (and/or any other agreement or document referred to herein or
         connected herewith) may have been executed by the Administrators (or
         one of them or a member of their staff) whether for and on behalf of
         the Vendor or otherwise it is hereby expressly agreed and declared that
         no personal liability under or in connection with this Agreement (or
         any such other agreement or document) shall fall upon the
         Administrators or either of them or any member of their staff nor shall
         any liability of the Vendor hereunder rank as an expense of the
         Administration;

11.2     Insofar (if at all) as the Purchaser is or becomes a creditor of the
         Vendor the Purchaser will not set off or attempt to set off any monies
         owing to it by the Vendor against all or any of the purchase price or
         other monies payable under the terms of this Agreement.

12       EMPLOYEES
         ---------

For the avoidance of any doubt and notwithstanding any other provision of this
Agreement the Purchaser acknowledges and agrees that:

12.1     this Agreement and the transfer of the undertaking and assets of the
         Business effected hereby are governed by the Regulations and that the
         Purchaser shall be solely responsible for all claims by and liabilities
         to every employee referred to in clause 12.2

12.2     in accordance with the Regulations the contracts of employment of each
         employee of the Vendor engaged in the Business shall be automatically
         transferred to the Purchaser with effect at the latest from the
         Transfer Date

12.3     if for any reason the Regulations do not effect the automatic transfer
         to the Purchaser of the contract of employment of any employee of the
         Vendor in the Business that employee shall be deemed to have been
         dismissed by the Vendor at the Transfer Date and re-engaged by the
         Purchaser with effect therefrom and the Purchaser shall be solely
         responsible for all claims by and liabilities to every such employee

12.4     neither the Vendor nor the Administrators shall have under or in
         connection with this Agreement or any document transaction or matter
         referred to herein or therein any liability to the Purchaser directly
         or indirectly relating to:

         (a)      the Vendor and/or the Administrators for any reason or at any
                  particular time or at all not having terminated or not having
                  been able to terminate by reason of redundancy or otherwise
                  the contracts of employment of some or all of the Vendor's
                  employees or former employees

         (b)      the Purchaser for any reason being or becoming actually or
                  potentially liable for any redundancy or compensatory or other
                  contribution, benefit or other payment(s) to or in respect of
                  any employee or former employee of the Vendor or of any other
                  employer and/or the Purchaser being or becoming the employer
                  of any such person
<PAGE>

13       APPOINTMENT
         -----------

13.1     There shall be no appointments as between the Vendor, the
         Administrators and the Purchaser or any third party of any outgoings of
         any nature in respect of the Business or any of the Assets or the
         Property.

14       GENERAL
         -------

14.1     All payments to be made or procured and all indemnities to be afforded
         by the Purchaser to the Vendor or to any other person under or in
         connection with this Agreement shall be liable to be paid or afforded
         or procured to be paid or afforded without assertion of any lien equity
         set-off or counterclaim whatsoever by or on behalf of the Purchaser and
         all such payments hereunder to the Vendor shall be effected by the
         payment of cleared sterling funds.

14.2     It is agreed by the Purchaser that the terms and conditions of this
         Agreement and the exclusions and limitations herein contained are fair
         and reasonable in the context of a sale of the assets of a company in
         administration bearing in mind:

         (a)      that the Purchaser agrees and acknowledges that it has entered
                  into this Agreement on the basis that the Assets, and the
                  respective titles thereto are sold in their present state and
                  condition and that the Purchaser must rely and has relied upon
                  its own opinion and professional advice in relation to the
                  assets the said titles thereto and to the terms of this
                  Agreement the Purchaser and its professional advisers having
                  been given the opportunity to inspect the same; and

         (b)      that the consideration payable hereunder has been agreed on
                  the basis that it takes into account the risk to the Purchaser
                  represented by the fact that all the parties believe the said
                  terms and conditions, exclusions and limitations will be
                  recognised as fully effective by the Court;

14.3     This document shall be governed by and be construed in accordance with
         English Law and the parties submit to the jurisdiction of the English
         Courts;
<PAGE>

14.4     In the event that any clause of this Agreement shall be held to be
         unenforceable by any Court of Competent Jurisdiction the same shall
         cease to be binding on the parties but the remaining provisions of this
         Agreement shall continue in full force and effect;

14.5     This Agreement and the documents to be entered into pursuant to its
         terms together represent the entire agreement between the parties with
         regard to their subject matter;

14.6     It is agreed and declared by the parties hereto that this Agreement and
         the terms hereof are not intended expressly or impliedly to confer on
         any third party any rights pursuant to the provisions of the Contracts
         (Rights of Third Parties) Act 1999 save in relation to the
         Administrators' partners firm employees agents and representatives as
         referred to in this Agreement.

15       Waiver
         ------

15.1     No failure to exercise and no delay in exercising on the part of the
         Vendor or the Administrators any right power or privilege hereunder
         shall operate as a waiver thereof nor shall any single or partial
         exercise of any such right, power or privilege preclude any further or
         other exercise thereof or the exercise of any other right, power or
         privilege.

16       PROVISIONS TO SURVIVE COMPLETION
         --------------------------------

16.1     All the provisions of this Agreement shall so far as they are capable
         of being performed and observed remain in hill force and effect
         notwithstanding completion of any part of this Agreement except in
         respect of those matters then already performed.

<PAGE>

17       Notice
         ------

17.1     Any notice or demand to be made hereunder shall be made in writing in
         the English language and may be served at the address of the relevant
         party shown at the commencement of this Agreement or in the case of a
         company at the registered office for the time being of the company to
         be served or to such other address in England as the person to be
         served may have notified in substitution for such address or registered
         office;

17.2     Service may be effected either by hand delivery, facsimile or by first
         class post. If affected by delivery by hand service shall be deemed to
         have taken place on delivery. If delivery by facsimile, service shall
         be deemed to have taken place upon transmission and if effected by
         first class post, service shall be deemed to have taken place at noon
         on the business day following posting.

17.3     In proving service by first class post, it shall be sufficient to prove
         that an envelope correctly addressed and duly stamped containing the
         item(s) to be served was duly placed into the post; and

17.4     The Vendor hereby gives notice for the purposes of clause 17.1 above
         that any such notice or demand to be served upon it should be sewed at
         the offices of the Administrators' Solicitors marked `For the immediate
         attention of Ged Barnes" rather than to its registered office.

18       PUBLICITY
         ---------

18.1     Save as required by law the Purchaser shall not divulge to any third
         party (except its professional advisers who shall also keep the same
         confidential) any information regarding the existence or subject matter
         of this Agreement without the prior written consent of the
         Administrators.

<PAGE>

19       COUNTERPARTS
         ------------

19.1     This Agreement may be executed in any number of counterparts and this
         shall have the same effect as if the signatures on the counterparts
         were on a single copy of this Agreement.

AS WITNESS the hands of the parties hereto or their duly authorised agents or
attorneys the day and year first before written.

SIGNED by C C S MACMILLAN
as Joint Administrative Receiver acting
without personal liability for and on behalf
of WARDELL SECURITY LIMITED
in the presence of:

Witness

Signature

Name

Address

Occupation

SIGNED by C C S MACMILLAN on
behalf of himself and D J POWER
in the presence of

Witness

Signature

Name

Address

OccupationEUROTELECOM COMMUNICATIONS, INC.
                          EMPLOYEE SHARE OPTION SCHEME

<PAGE>

                                TABLE OF CONTENTS

 1          Definitions                                                        1
 PART A - APPROVED OPTIONS                                                     4
 2          Grant of Options                                                   4
 3          Rights to exercise Options                                         5
 4          The Exercise of Options                                            7
 5          Adjustment of Options                                              7
 6          Administration                                                     8
 7          General                                                            8
 8          Alterations                                                        8
 PART B - UNAPPROVED OPTIONS                                                  10
 9          Grant of Unapproved Options                                       10
 10          No Inland Revenue approval                                       10
 11          Option Price                                                     10
 12          Limit of four times Relevant Remuneration                        10
 13          No(pound)30,000 limit                                            10
 14          Eligibility                                                      11
 15          PAYE                                                             11

<PAGE>

                        EUROTELECOM COMMUNICATIONS, INC.

                          EMPLOYEE SHARE OPTION SCHEME

          (as adopted by Resolution of the Directors on 28 March 2000)

         The purpose of this Scheme is to attract and retain and provide
         share-related incentives to employees, directors and consultants of the
         Group and to thereby increase overall shareholder value.

1        DEFINITIONS

1.1      In this Scheme, except where inconsistent with the subject or context,
         words or expressions defined in or bearing a specific meaning for the
         purposes of Schedule 9 to the Income and Corporation Taxes Act 1988 and
         every statutory modification or re-enactment thereof or a relevant
         provision thereof shall bear the same meaning, and the words and
         expressions set out below shall bear the following respective meanings,
         namely:

         the Auditors               the auditors for the time being of the
                                    Company

         the Company                EuroTelecom Communications, Inc.

         Date of Grant              the date on which an Option is granted

         the Directors              the Board of Directors of the Company or a
                                    duly authorised committee thereof (having at
                                    least 2 members) to whom the Directors may
                                    delegate their authority to operate this
                                    Scheme (provided that all the members of any
                                    such Committee must be Non-Employee
                                    Directors)

         Eligible Employee          any Full-time director or any employee
                                    (other than one who is a director) of any
                                    member of the Group, but excluding any
                                    Excluded Person

         Equity                     Shares Ordinary Shares and any other class
                                    of equity shares of common stock in the
                                    Company which carries rights to participate
                                    in the profits of the Company otherwise than
                                    solely by way of dividends at a fixed rate

         Excluded Person            any person who has (or has within the
                                    preceding 12 months had) a material interest
                                    in the Company (if then a close company) or
                                    a company which is a close company and
                                    either controls the Company or is a member
                                    of a consortium which owns the Company
                                    and/or any person who is not resident in the
                                    UK either at the date of grant or upon the
                                    date of intended exercise of his Option (as
                                    the case may be)

         Full-time                  required to devote substantially the whole
                                    of his working time to the business of the
                                    Group and required under his terms of
                                    service to work for his employing company
                                    for no less than 25 hours per week
                                    (excluding meal breaks)

         the Group                  the Company and any Subsidiary designated by
                                    the Directors as a member of the Group for
                                    the purposes of this Scheme or, where the
                                    context permits, any one or more of them

         the London Stock Exchange  London Stock Exchange Limited

         Non-Employee Directors     as defined in Rule 16b-3(b)(3)(i)
                                    promulgated pursuant to the Securities
                                    Exchange Act of 1934 of the United States
<PAGE>

         Option                     a non-transferable right to acquire Ordinary
                                    Shares granted to an Eligible Employee in
                                    pursuance of this Scheme and for the time
                                    being subsisting

         Option Holder              a person holding an Option or, where the
                                    context requires or permits, his legal
                                    personal representatives (but so that, in
                                    the event of the insolvency of an Option
                                    Holder, all his Options shall lapse)

         Option Period              a period of ten years commencing on the Date
                                    of Grant of an Option

         Option Price               a price per Ordinary Share equal to
                                    whichever shall be the greater of:

                                    (a) its market value as at the Date of Grant
                                        as determined:

                                        (i)  by the Directors by taking the
                                             arithmetical average of its middle
                                             market quotations as recorded in
                                             the Daily Official List of the
                                             London Stock Exchange on the three
                                             dealing days preceding the related
                                             Date of Grant if at that time the
                                             Ordinary Shares are listed by the
                                             London Stock Exchange, such average
                                             to be rounded upwards to the
                                             nearest pence; or

                                        (ii) on any day when the Ordinary Shares
                                             are not so listed or such middle
                                             market quotations are not
                                             available, the market value of an
                                             Ordinary Share determined in
                                             accordance with the provisions of
                                             Part VIII of the Taxation of
                                             Chargeable Gains Act 1992 and
                                             agreed for the purposes of the
                                             Scheme with the Inland Revenue
                                             Shares Valuation Division on or
                                             within 30 days before that day; and

                                    (b) its par value;

                                    or in either case (when applicable) such
                                    price as from time to time adjusted pursuant
                                    to this Scheme

         Ordinary Shares            shares of Class A common stock, par value
                                    $0.01 per share, in the capital of the
                                    Company which comply with the requirements
                                    of paragraphs 10 to 14 of Schedule 9 to the
                                    Taxes Act

         Relevant Conditions        objective and relevant conditions as to the
                                    performance of the Company and/or the Option
                                    Holder which:

                                    (a) must be satisfied in order that an
                                        Option granted to such Option Holder may
                                        be exercised under all, any or some only
                                        (as determined in the discretion of the
                                        Directors prior to the related Date of
                                        Grant) of the paragraphs of this Scheme
                                        (including without limitation upon or in
                                        consequence of a general offer under
                                        paragraph 3.5);

                                    (b) shall have been determined by the
                                        Directors (if at all) on or prior to the
                                        related Date of Grant; and

                                    (c) shall be notified to the Option Holder
                                        on his Option certificate by way of an
                                        appendix thereto

                                      -2-
<PAGE>

         Relevant Event             any variation in the share capital of the
                                    Company arising from any reduction of
                                    capital or sub-division or consolidation of
                                    capital or issue of shares by way of
                                    capitalisation of profits or reserves or by
                                    way of rights (including in the latter case
                                    an offer to holders of Ordinary Shares to
                                    subscribe additional shares proportionately
                                    to their existing shareholdings whether or
                                    not such additional shares are provisionally
                                    allotted on a nil paid basis)

         this Scheme                this Scheme in its present form or as from
                                    time to time altered in accordance with the
                                    provisions hereof

         Subsidiary                 any company which is for the time being
                                    under the control of the Company

         the Taxes Act              the Income and Corporation Taxes Act 1988 of
                                    the United Kingdom

1.2      References to paragraphs are to paragraphs of this Scheme.

1.3      References in this Scheme to statutory provisions shall extend to any
         statutory modification or re-enactment thereof.

                                      -3-
<PAGE>

                            PART A - APPROVED OPTIONS

     (AS APPROVED BY THE INLAND REVENUE ON 19 MAY 2000 REFERENCE X20607/PAM)

2        GRANT OF OPTIONS

2.1      Subject to the restrictions hereinafter contained, the Directors may
         from time to time at their discretion and subject to such Relevant
         Conditions as they may determine grant or procure that there is granted
         to any Eligible Employee an Option to acquire Ordinary Shares at the
         applicable Option Price.

2.2      Other than in circumstances considered by the Directors to be
         exceptional, Options shall only be granted:

         (a)      within 42 days after the date of adoption of this Scheme; or

         (b)      within the 42 days next following the announcement of the
                  Company's final or interim results in respect of any financial
                  period.

2.3      No Option shall be granted after the tenth anniversary of the date of
         adoption of this Scheme.

2.4      No Option shall be granted under this Scheme (either Part A or Part B)
         if, as a result:

         (a)      the aggregate number of Ordinary Shares which might fall to be
                  or have already been issued within the preceding ten years
                  pursuant to grants or awards made following the quotation of
                  the Company's Ordinary Shares on the Alternative Investment
                  Market of the London Stock Exchange under all employee share
                  option or other employees' share schemes established by the
                  Company (excluding options granted under any savings related
                  share option scheme), would exceed 5% of the then issued and
                  outstanding Ordinary Shares; or

         (b)      the aggregate number of Ordinary Shares which might fall to be
                  or have already been issued within the preceding ten years
                  pursuant to grants or awards made following the quotation of
                  the Company's Ordinary Shares on the Alternative Investment
                  Market of the London Stock Exchange under all employee share
                  option or other employees' share schemes established by the
                  Company would exceed 10% of the then issued and outstanding
                  Ordinary Shares; or

         (c)      the aggregate number of Ordinary Shares which might fall to be
                  or have already been issued pursuant to grants or awards made
                  following the quotation of the Company's Ordinary Shares on
                  the Alternative Investment Market of the London Stock Exchange
                  under all employee share option or other employees' share
                  schemes established by the Company (other than any savings
                  related share option scheme) and granted in any three-year
                  period would exceed 3% of the then issued and outstanding
                  Ordinary Shares immediately before such grant.

2.5      No Option shall be granted under this Part A of this Scheme to an
         Eligible Employee if the aggregate Option Price of the Ordinary Shares
         comprised therein, when added to the aggregate of the market value of
         shares which may be acquired under any subsisting Options granted to
         him under this Part A of this Scheme or any other share option scheme
         approved under Schedule 9 to the Taxes Act and established by the
         Company or an associated company thereof (not being a savings-related
         share option scheme and excluding, for the avoidance of doubt, part B
         of this Scheme), would exceed, or further exceed, (pound)30,000 or such
         other limit as may apply from time to time under paragraph 28 of
         Schedule 9 to the Taxes Act. For the purposes of this rule, the market
         value shall be as determined at the time of grant of the options under
         the rules of the relevant share option scheme.

2.6      No Option shall be granted to an Eligible Employee within the period of
         two years next preceding his sixty-fifth birthday, unless the Directors
         shall in their absolute discretion on a case by case basis allow such a
         grant to recognise an employee's valuable contribution to the Company.

                                      -4-
<PAGE>

2.7      No payment shall be required for the grant of any Option. Each Option
         shall be granted by means of a certificate executed as a deed by the
         Company which shall be issued to the Option Holder as soon as
         reasonably practicable following the Date of Grant of the related
         Option and shall specify the number of Ordinary Shares subject to the
         Option and the Option Price. The date upon which the Directors resolve
         to grant an Option unconditionally shall constitute for all purposes
         the Date of Grant of such Option and such date shall be specified in
         the Option certificate if different from the date of execution of such
         certificate.

2.8      An Option Holder may renounce their Option by giving notice in writing.
         The notice must be received not later than 28 days after the Date of
         Grant of that Option. If this is done, the Option shall be deemed never
         to have been granted.

3        RIGHTS TO EXERCISE OPTIONS

3.1      Save as hereinafter provided, an Option may not be exercised in whole
         or in part:

         (a)      before the expiration of a period of three years commencing on
                  its Date of Grant (unless the Directors at their discretion
                  determine in relation to a particular Option before it is
                  granted that it can be exercised earlier and so specify in the
                  Option certificate); and

         (b)      unless and until any applicable Relevant Conditions have been
                  satisfied.

         Thereafter an Option may, subject as herein after provided, be
         exercised in whole or in part at any time or times until the expiration
         of the Option Period.

3.2      If an Option Holder dies whilst any Option remains available for future
         exercise by him, such Option may be exercised at any time during the
         period of 12 months from the date of his death or until sooner expiry
         of the Option Period (provided that he was not at the date of death an
         Excluded Person), notwithstanding that such exercise occurs before the
         third anniversary of its Date of Grant but subject to satisfaction of
         any applicable Relevant Conditions. To the extent that any Option so
         exercisable is not exercised within such period of 12 months, it shall
         forthwith lapse.

3.3      If an Option Holder ceases to be an Eligible Employee by reason of any
         of the following circumstances, namely:

         (a)      retirement at or after his sixty-fifth birthday; or

         (b)      retirement with the consent of the Directors before his
                  sixty-fifth birthday; or

         (c)      injury or disability (evidenced to the satisfaction of the
                  Directors) or dismissal for redundancy (within the meaning of
                  the Employment Rights Act 1996); or

         (d)      the company by which he is employed (or of which he is a
                  Full-time director) leaving the Group; or

         (e)      the transfer or sale of the undertaking or part-undertaking,
                  in which the Option Holder is employed (or of which he is a
                  Full-time director), to a person other than a member of the
                  Group;

         his Option shall subject to satisfaction of any applicable Relevant
         Conditions become or remain exercisable by him for a period of six
         months from the date on which he ceased to be such an employee,
         notwithstanding that exercise occurs before the third anniversary of
         the Date of Grant of such Option but provided that such exercise occurs
         before the expiration of the Option Period. To the extent that any
         Option so exercisable is not exercised within such period of six
         months, it shall forthwith lapse.

3.4      Save as hereinbefore provided, if an Option Holder ceases to be an
         employee or director of the Group any Options shall forthwith lapse
         unless the Directors shall in their absolute discretion allow such
         Option Holder to exercise his Options on a once and for all basis
         during a period not exceeding twelve months as determined by the
         Directors, and upon expiry of such period, such Options shall lapse.

                                      -5-
<PAGE>

3.5      If in consequence of an offer made to the holders of the Equity Shares
         (being an offer made in the first instance on a condition such that, if
         it is satisfied, the offeror will have control of the Company) or
         otherwise, any person or persons acting in concert shall have obtained
         control of the Company, then the Directors shall as soon as practicable
         thereafter notify every Option Holder accordingly and each Option
         Holder shall be entitled at any time within the period of six months
         after such control has been obtained, subject to the limitations
         imposed by paragraphs 3.1(b), 3.2, 3.3 and 3.4, to exercise any Option
         notwithstanding that such exercise occurs before the third anniversary
         of its Date of Grant. To the extent that it has not been exercised, any
         Option shall upon the expiration of such period lapse: provided that
         if, during such period, any such person becomes entitled to exercise
         rights of compulsory acquisition of Equity Shares pursuant to Part
         XIIIA of the Companies Act 1985 and gives notice in writing to any
         holders of Equity Shares that he intends to exercise such rights,
         Options shall remain exercisable to the extent aforesaid until one
         month from the date of such notice and to the extent that they have not
         been exercised shall thereupon lapse.

3.6.1    If any company ("the Acquiring Company"):

         (a)      obtains control of the Company as a result of making a general
                  offer:

                  (i)      to acquire the whole of the issued ordinary share
                           capital of the Company which is made on a condition
                           such that if it is satisfied the person making the
                           offer will have control of the Company; or

                  (ii)     to acquire all the Ordinary Shares;

         (b)      obtains control of the Company in pursuance of a compromise or
                  arrangement sanctioned by the court under section 425 of the
                  Companies Act 1985 or Article 418 of the Companies (Northern
                  Ireland) Order 1986; or

         (c)      becomes bound or entitled to acquire shares in the Company
                  under sections 428 to 430 of that Act or Articles 421 to 423
                  of that Order,

         any Option Holder may at any time within the Appropriate Period, by
         agreement with the Acquiring Company, release his rights under this
         Scheme (in this paragraph 3.6 referred to as "the Old Rights") in
         consideration of the grant to him of rights (in this paragraph 3.6
         referred to as "the New Rights") which are equivalent to the Old Rights
         but relate to shares in a different company (whether the Acquiring
         Company itself or a company which has control of the Acquiring Company
         or a company which either is, or has control of a company which is a
         member of a consortium owning either the Acquiring Company or a company
         having control of the Acquiring Company).

3.6.2    In paragraph 3.6.1 above the "Appropriate Period" means:

         (a)      in a case falling within paragraph 3.6.1(a), the period of six
                  months beginning with the time when the person making the
                  offer has obtained control of the Company and any conditions
                  subject to which the offer is made is satisfied;

         (b)      in a case falling within paragraph 3.6.1(b), the period of six
                  months beginning with the time when the court sanctions the
                  compromise or arrangement; and

         (c)      in case falling within paragraph 3.6.1(c), the period during
                  which the Acquiring Company remains bound or entitled as
                  mentioned in that paragraph.

3.6.3    The New Rights shall not be regarded for the purposes of this paragraph
         3.6 as equivalent to the Old Rights unless:

         (a)      the shares to which they relate satisfy the conditions
                  specified, in relation to scheme shares, in paragraphs 10 to
                  14 of Schedule 9 to the Taxes Act;

         (b)      the New Rights will be exercisable in the same manner as the
                  Old Rights and subject to the provisions of this Scheme as it
                  had effect immediately before the release of the Old Rights;
                  and

         (c)      the total market value, immediately before the release, of the
                  Ordinary Shares which were subject to the Option Holder's Old
                  Rights is equal to the total market value, immediately after
                  the grant, of the shares in respect of which the New Rights
                  are granted to the Option Holder; and

         (d)      the total amount payable by the Option Holder for the
                  acquisition of shares in pursuance of the New Rights is equal
                  to the total amount that would have been payable for the
                  acquisition of Ordinary Shares in pursuance of the Old Rights.

                                      -6-
<PAGE>

3.7      If notice is duly given of a general meeting at which a resolution will
         be proposed for the voluntary winding-up of the Company, every Option
         shall be exercisable (but so that any exercise hereunder shall be
         conditional upon such resolution being passed) at any time thereafter
         until the resolution is duly passed or defeated or the general meeting
         concluded or adjourned sine die, whichever shall first occur, subject
         to the limitations imposed by paragraphs 3.1(b), 3.2, 3.3 and 3.4. If
         such resolution is duly passed all Options shall to the extent that
         they have not been exercised thereupon lapse.

3.8      If, pursuant to paragraph 3.6, an Option Holder releases his Option in
         consideration of the grant to him of an equivalent option ("the New
         Option") to acquire shares in the Acquiring Company or a company which
         has control of the Acquiring Company, then in relation to the New
         Option references to "the Company" shall be construed as references to
         the company whose shares are the subject of the New Option in the
         definitions of "Ordinary Shares" and "Relevant Event" and for the
         purposes of this Scheme where the context so requires.

3.9      Notwithstanding any of the foregoing, no Option may in any event be
         exercised by an Option Holder who is at the time of such exercise an
         Excluded Person.

4        THE EXERCISE OF OPTIONS

4.1      To exercise an Option, an Option Holder must deliver to the Secretary
         of the Company a notice in writing specifying the number of Ordinary
         Shares in respect of which the Option is being exercised and
         accompanied by payment in full of the aggregate Option Price; the date
         of receipt of such notice by the Company shall constitute for all
         purposes the date of exercise of such Option.

4.2      Unless prior to the exercise of an Option the Ordinary Shares acquired
         upon such exercise are the subject of a registration statement filed
         with the Securities and Exchange Commission pursuant to the Securities
         Act of 1933 of the United States, as amended ("the Securities Act"),
         and there is then in effect a prospectus filed as part of such
         registration statement meeting the requirements of Section 10(a)(3) of
         the Securities Act, the notice of exercise with respect to such Option
         shall be accompanied by a representation by the Option Holder to the
         Company that such shares are being acquired for investment only and not
         with a view to the sale or distribution thereof except in compliance
         with the Company's Charter and US and UK securities laws (unless, in
         the opinion of the Company's legal advisers such representation is not
         necessary to comply with the Securities Act), and the certificate
         evidencing such Ordinary Shares shall bear such restrictive legend as
         may be required by the Company or its Charter.

4.3      All issues or transfers of Ordinary Shares will be made within 30 days
         of the date of exercise of the related Option, and will be subject to
         such consents (if any) of HM Treasury or other authorities as may for
         the time being be necessary and it shall be the responsibility of the
         Option Holder:

         (a)      to comply with any requirements to be fulfilled in order to
                  obtain or obviate the necessity for any such consent; and

         (b)      in the case of a transfer of Ordinary Shares, to pay the
                  requisite stamp duty or stamp duty reserve tax.

4.4      If under the terms of a resolution passed or an announcement made by
         the Company prior to the date of exercise of an Option, a dividend is
         to be or is proposed to be paid to holders of Ordinary Shares on the
         register on a date after such date of exercise, any Ordinary Shares to
         be issued upon such exercise will not rank for such dividend. Subject
         as aforesaid the Ordinary Shares so to be issued shall be identical and
         rank pari passu in all respects with the fully paid Ordinary Shares
         then in issue.

                                       -7-
<PAGE>

4.5      No Option shall be capable of exercise in part (other than as to the
         full extent then exercisable) as to less than 100 Ordinary Shares.

5        ADJUSTMENT OF OPTIONS

         Upon the occurrence of any Relevant Event the number of Ordinary Shares
         comprised in each Option and/or the Option Price thereunder may,
         subject to the prior approval of the Inland Revenue, be adjusted in
         such manner (not excluding retrospective adjustment where a Relevant
         Event occurs after the date of exercise of an Option but the record
         date relating to such Relevant Event precedes such date of exercise) as
         the Directors (with the written concurrence of the Auditors that in
         their opinion the adjustments proposed are fair and reasonable) may
         deem appropriate in that such adjustment is necessary to take account
         of any variation in the share capital of the Company; provided always
         that:

         (a)      no adjustment shall be made so as to reduce the Option Price
                  per Ordinary Share to an amount less than the par value per
                  share; and

         (b)      subject to sub-clause (a) above, no increase shall be made in
                  the aggregate Option Price relating to any Option.

         Notice of any such adjustments shall be given to Option Holders by the
         Directors, who may call in Option certificates for endorsement or
         replacement.

6        ADMINISTRATION

6.1      Any notice or other document which the Company is required or may
         desire to give to any Option Holder pursuant to this Scheme shall be
         sufficiently given if delivered to him (if he is still an Eligible
         Employee) at his place of work or sent through the post in a pre-paid
         cover addressed to the Option Holder at his address last known to the
         Company and if so sent shall be deemed to have been duly given on the
         date of posting. Any document so sent to an Option Holder shall be
         deemed to have been duly delivered notwithstanding that he be then
         deceased (and whether or not the Company has notice of his death)
         except where his legal personal representatives have established their
         title to the satisfaction of the Company and supplied to the Company an
         address to which documents are to be sent.

6.2      Option Holders not otherwise entitled thereto shall be sent copies of
         all notices and (so far as appropriate) other documents sent by the
         Company to its Ordinary Shareholders generally.

6.3      The Directors shall have power from time to time to make or vary
         regulations for the administration and operation of this Scheme
         provided that such regulations are not inconsistent with the provisions
         of this Scheme.

7        GENERAL

7.1      The Directors shall at all times keep available and reserved for issue
         such authorised and unissued Ordinary Shares as may be required to meet
         the subsisting rights of Option Holders.

7.2      The decision of the Directors in any dispute or question affecting any
         Option Holder shall be final and conclusive subject to the concurrence
         of the Auditors whenever required under the provisions of this Scheme.

7.3      The Company by the vote of the shareholders, or the Directors, may at
         any time resolve to terminate this Scheme in which event no further
         Options shall be granted but the provisions of this Scheme shall in
         relation to Options then subsisting continue in full force and effect.

7.4      An Option or the benefit thereof shall not (except as may be required
         by taxation law) form part of the emoluments of an Option Holder or
         count as wages or remuneration and shall not be pensionable. In no
         circumstances shall an Option Holder on ceasing to be an employee of
         the Group for any reason be entitled to, or claim as against any member
         or former member of the Group any compensation for or in respect of any
         consequent diminution or extinction of his rights or benefits (actual
         or prospective) under any Options then held by him or otherwise in
         connection with this Scheme.

7.5      The rules of this Scheme shall be interpreted in accordance with
         English law.

                                      -8-
<PAGE>

8        ALTERATIONS

         This Scheme may be altered by the Directors from time to time subject
         to the following provisions:

         (a)      the provisions of this Scheme relating to:

                  (i)      the persons to whom, or for whom, securities are
                           provided under this Scheme (the "participants");

                  (ii)     limitations on the number or amount of the securities
                           subject to this Scheme;

                  (iii)    the maximum entitlement for any one participant;

                  (iv)     the basis for determining a participant's entitlement
                           to, and the terms of, securities to be provided and
                           for the adjustment thereof (if any) in the event of a
                           capitalisation issue, rights issue or open offer,
                           sub-division or consolidation of shares or reduction
                           of capital or any other variation of capital;

                  cannot be altered to the advantage of participants, without
                  the prior approval of the Company's shareholders (except for
                  minor amendments to benefit the administration of this Scheme,
                  to take account of a change in legislation or to obtain or
                  maintain favourable tax, exchange control or regulatory
                  treatment for participants in this Scheme or for the Company
                  or for members of the Group);

         (b)      no alteration to Part A of this Scheme shall become effective
                  until it has been approved by the Board of Inland Revenue;

         (c)      save in order to maintain the approval of Part A of this
                  Scheme by the Board of Inland Revenue, no alteration shall be
                  effective to abrogate or alter adversely any of the subsisting
                  rights of Option Holders except with such consent or sanction
                  on the part of the Option Holders as would be required under
                  the provisions of the Company's Certificate of Incorporation
                  if the Options constituted a single class of shares (or, where
                  the Directors deem it appropriate, two or more classes of
                  shares according to the periods, as determined by the
                  Directors, in which the Dates of Grant fall) and as if such
                  provisions applied mutatis mutandis thereto.

         (d)      the Directors may only make alterations to the Relevant
                  Conditions applying to an Option if an event or events happen
                  which mean that the original Relevant Conditions are no longer
                  achievable and they may only make such alterations:

                  (i)      as the auditors for the time being of the Company
                           shall have confirmed in writing to be in their
                           opinion fair and reasonable and not more onerous than
                           before the alteration; and

                  (ii)     to the extent that the Relevant Conditions following
                           such alteration are in their reasonable opinion and
                           taken as a whole no less onerous than the original
                           Relevant Conditions.

                                      -9-
<PAGE>

                           PART B - UNAPPROVED OPTIONS

9        GRANT OF UNAPPROVED OPTIONS

         The Directors may, notwithstanding any other provision of this Scheme,
         grant Options which do not attract the tax reliefs available by virtue
         of Section 185 of the Taxes Act. To every such Option (an "Unapproved
         Option") Part A of this Scheme shall apply save only as modified by the
         provisions of this Part B.

10       NO INLAND REVENUE APPROVAL

         No Inland Revenue approval or consent shall be necessary, and
         accordingly:

         (a)      the definition of "Option Price" and paragraphs 3 and 5 of
                  Part A shall, in their application to Unapproved Options, be
                  so read and construed;

         (b)      paragraph 8 (b) of Part A shall not apply; and

         (c)      paragraph 8 (c) of Part A shall, in its application to
                  Unapproved Options, be so read and construed.

11       OPTION PRICE

         The definition of Option Price shall be amended, inserting the
         following wording at the end of the definition: "plus an amount ("A")
         equal to the amount of employer's national insurance contributions at
         the rate prevailing at the date the gain arises in relation to the
         Option, on the amount of gain per share which would arise if the
         exercise price did not include A, provided that such price shall not be
         less than the par value per Ordinary Share".

12       LIMIT OF FOUR TIMES RELEVANT REMUNERATION

         No Option shall be granted to an Eligible Employee if, as a result, the
         aggregate market value (as at the respective Dates of Grant) of Equity
         Shares which might fall to be or have been acquired by him pursuant to
         grants or awards made following the quotation of the Company's Ordinary
         Shares on the Alternative Investment Market of the London Stock
         Exchange under any employee share option scheme or other employee share
         scheme adopted by the Company or any Subsidiary (other than any
         savings-related share option scheme) and granted within the immediately
         preceding ten years, would exceed four times his Relevant Remuneration.
         The following definitions shall apply for the purposes of this
         provision:

         Relevant Remuneration      the Remuneration of an Eligible Employee
                                    from the Group for the current or
                                    immediately preceding year of assessment
                                    (whichever is the greater): provided that,
                                    where there is no such Remuneration for the
                                    preceding year of assessment, there shall be
                                    substituted such Remuneration for the period
                                    of 12 months beginning with the first day
                                    during the year of assessment in respect of
                                    which such Remuneration shall have been paid

         Remuneration               such emoluments of the office or employment
                                    by virtue of which any employee is an
                                    Eligible Employee as are liable to be paid
                                    under deduction of United Kingdom income tax
                                    pursuant to Section 203 of the Taxes Act (or
                                    would be so liable if the employee and his
                                    employing company were both resident in the
                                    United Kingdom) after deducting therefrom
                                    amounts included (or which would be so
                                    included) by virtue of Chapter II of Part V
                                    of the Taxes Act

         For the purposes of this provision, the term "Option" includes any
         Option which has been surrendered or which has otherwise lapsed.

                                      -10-
<PAGE>

13       NO (POUND) 30,000 LIMIT

         Paragraph 2.5 of Part A shall not apply.

14       ELIGIBILITY

14.1     The definition of "Eligible Employee" shall in its application to
         Unapproved Options be extended to include any director or consultant
         (not being an employee) of any member of the Group and all references
         to "Full-time" in relation to any director shall, in relation to
         Unapproved options, be deleted.

14.2     References in paragraphs 3.3 and 3.4 to an Option Holder ceasing to be
         an Eligible Employee shall be read and construed as references to the
         cessation of the directorship or consultancy of any Option Holder who
         is not an employee.

14.3     In relation to an Option Holder who is neither an employee or a
         director, paragraphs 11, 12 and 15 of this Scheme shall not apply.

15       PAYE

15.1     It shall be a term of all Options granted under this Part B of this
         Scheme, and a condition of the right to exercise, or release for
         consideration, all such Options that, if the exercise or release of an
         Option gives rise to a liability of any member of the Group under
         Section 203FB of the Taxes Act or otherwise pursuant to the United
         Kingdom's Pay-as-you-Earn ("PAYE") system (or any other equivalent
         withholding tax system in any other applicable jurisdiction), such
         member of the Group shall (to the extent permitted by law) be entitled
         to withhold from such Option Holder's salary or other payments due to
         him, and/or the Option Holder shall be required to pay to such member
         of the Group, as a condition of such exercise or release, the material
         amount. For this purpose, the "material amount" is the amount which
         such member of the Group is required to pay to the Inland Revenue (or
         other relevant taxing authority) or, at the discretion of the
         Directors, an amount equal to a specific percentage of such gain (not
         being greater than the highest marginal rate of income tax at the
         material time).

15.2     Any such payment by an Option Holder shall be made within such period
         as the relevant member of the Group shall notify to him in writing,
         provided that not less than one month's notice shall be given. The
         Company may refuse to permit (a) the exercise of any Option or (b) the
         release of any Option for consideration if any such payment is not
         satisfied by the Option Holder within such period as shall have been
         notified in writing to him.

15.3     Alternatively, if the Directors so decide in their absolute discretion,
         the PAYE or other taxation liability falling upon any member of the
         Group may be satisfied by (a) the Company not releasing to the Option
         Holder concerned such number of Ordinary Shares (which expression shall
         for this purpose include other shares or securities to be issued upon
         such exercise) or (b) deducting from any consideration for the release
         of an Option granted under this Part B of this Scheme such monetary
         amount as shall in either case equal in value the material amount,
         together (where relevant) with any commission or similar reasonable
         costs to be reasonably and properly incurred by the Company upon the
         disposal of any such Ordinary Shares to fund such tax liability.

15.4     If the material amount in respect of any Option Holder shall exceed the
         amount payable by or in respect of that Option Holder, the relevant
         member of the Group shall account to such Option Holder for such
         excess.

15.5     Upon the exercise of an Option, each Option Holder shall appoint
         (irrevocably and by way of security for the performance of his or her
         obligations under paragraphs 15.1 to 15.4) the Company (with full power
         of substitution) as his attorney for the purpose of signing, in the
         name and on behalf of such holder, any documents required to implement
         the foregoing or doing any act or thing (including, without prejudice
         to the generality of the foregoing, the right to sell Ordinary Shares
         not so released as aforesaid).

                                      -11-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]