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                                                                     EXHIBIT 4.2

                          COMPANIES ACTS, 1963 TO 2001
                            COMPANY LIMITED BY SHARES

                             ARTICLES OF ASSOCIATION
                                       OF
                        SMARTFORCE PUBLIC LIMITED COMPANY

           (adopted by a special resolution passed on 31st March 1995
                    and amended by special resolutions passed
      on 6th July 1995, 28th April 1998, 26th January 2000, 10th July 2001
                            and 6th September 2002)

                              PART I - PRELIMINARY

1.         INTERPRETATION

(a)        The Regulations contained in Table A in the First Schedule to the
           Companies Act 1963 shall not apply to the Company.

(b)        In these Articles the following expressions shall have the following
           meanings:

           "the Acts"                  the Companies Acts 1963 to 1990 including
                                       any statutory modification or
                                       re-enactment thereof for the time being
                                       in force

           "these Articles"            these Articles of Association as from
                                       time to time altered by resolution of the
                                       Company

           "the Auditors"              the auditors for the time being of the
                                       Company

           "Board"                     the board of directors for the time
                                       being of the Company

           "clear days"                in relation to the period of a
                                       notice, that period excluding the day the
                                       notice is given, the day the notice is
                                       deemed to be received and the day for
                                       which it is given or on which it is to
                                       take effect

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           "the Directors"             the directors for the time being
                                       of the Company or the directors
                                       present at a meeting of the Board of
                                       directors and includes any person
                                       occupying the position of director by
                                       whatever name called

           "the holder"                in relation to any share the member whose
                                       name is entered in the Register as the
                                       holder of the share

           "the Office"                the registered office for the time being
                                       of the Company

           "the Ordinary               ordinary shares of EURO0.11 each in the
           Shares"                     capital of the Company

           "the Register"              the register of members to be kept as
                                       required by the Acts

           "the Seal"                  the common seal of the Company or
                                       (where relevant) the official
                                       securities seal kept by the Company
                                       pursuant to the Acts

           "the Secretary"             any person appointed to perform the
                                       duties of the secretary of the Company

           "the State"                 the Republic of Ireland

(c)        Expressions referring to writing shall, unless the contrary intention
           appears, be construed as including references to printing,
           lithography, photography and any other modes of representing or
           reproducing words in a visible form. The expression "executed" shall
           include any mode of execution whether under seal or under hand.

(d)        Unless specifically defined herein or the context otherwise requires,
           words or expressions contained in these Articles shall bear the same
           meaning as in the Acts but excluding any statutory modification
           thereof not in force upon the date of adoption of these Articles.

(e)        Reference to Articles are to Articles of these Articles. The headings
           and captions included in these Articles are inserted for convenience
           of reference only and shall not be considered a part of or affect the
           construction or interpretation of these Articles.

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                       PART II - SHARE CAPITAL AND RIGHTS

2.         SHARE CAPITAL

           The share capital of the Company is EURO27,500,000 divided into
           250,000,000 Ordinary Shares of EURO0.11 each.

3.         RIGHTS OF SHARES ON ISSUE

           Without prejudice to any special rights conferred on the holders of
           any existing shares or class of shares and subject to the provisions
           of the Acts any share may be issued with such rights or restrictions
           as the Company may by ordinary resolution determine.

4.         REDEEMABLE SHARES

           Subject to the provisions of the Acts redeemable shares may be issued
           by the Company and redeemed accordingly.

5.         PURCHASE OF OWN SHARES

           Subject to the provisions of the Acts the Company may purchase its
           own shares (including any redeemable shares) and enter into a
           contingent purchase contract for the purchase of its shares.

6.         VARIATION OF RIGHTS

(a)        Whenever the share capital of the Company is divided into different
           classes of shares, the rights attaching to any class may be varied or
           abrogated with the consent in writing of the holders of three-fourths
           of the issued shares of that class, or with the sanction of a special
           resolution passed at a separate general meeting of the holders of the
           shares of that class and may be so varied or abrogated either whilst
           the Company is a going concern or during or in contemplation of a
           winding-up.

(b)        Unless otherwise provided by the rights attaching to any shares, the
           rights attaching to any shares shall be deemed to be varied by the
           reduction of the capital paid up on those shares and by the allotment
           of further shares ranking in priority for payment of a dividend or in
           respect of capital or which confer on the holders voting rights more
           favourable than those conferred by such first mentioned shares, but
           shall not otherwise be deemed to be varied by the creation or issue
           of further shares.

(c)        To every separate general meeting of the holders of shares of any
           class all the provisions of these Articles relating to general
           meetings of the Company or to the proceedings thereat shall, mutatis
           mutandis, apply, except that in respect of any class

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           where all of the shares are held by only one shareholder then for the
           purposes of a general meeting of the holders of shares of that class
           the necessary quorum shall be one person and in all other cases the
           necessary quorum shall be two persons at least present in person or
           by proxy and holding or representing by proxy one-third in nominal
           amount of the issued shares of the class of shares (but so that if at
           any adjourned meeting of such holders a quorum as above defined is
           not present, those members who are present in person or by proxy
           shall be a quorum), and that any holder of shares of the class
           present in person or by proxy may demand a poll and that the holders
           of shares of the class shall, on a poll, have one vote in respect of
           every share of the class held by them respectively.

7.         TRUSTS NOT RECOGNISED

           Except as required by law, no person shall be recognised by the
           Company as holding any share upon any trust and the Company shall not
           be bound by or be compelled in any way to recognise (even when having
           notice thereof) any equitable, contingent, future or partial interest
           in any share or any interest in any fractional part of a share or
           (except only as by these Articles or by law otherwise provided) any
           other rights in respect of any share except an absolute right to the
           entirety thereof in the holder. This shall not preclude the Company
           from requiring the members or a transferee of shares to furnish the
           Company with information as to the beneficial ownership of any share
           when such information is reasonably required by the Company.

8.         ALLOTMENT OF SHARES

           No allotment of shares shall be made which would result in a change
           in control of the Company unless such allotment has first been
           approved by the shareholders of the Company in general meeting.

9.         PAYMENT OF COMMISSION

           The Company may exercise the powers of paying commissions conferred
           by the Acts. Subject to the provisions of the Acts, any such
           commission may be satisfied by the payment of cash or by the
           allotment of fully or partly paid shares or partly in one way and
           partly in the other. The Company may also, on any issue of shares,
           pay such brokerage as may be lawful.

10.        FINANCIAL ASSISTANCE

           Except as provided in these Articles or as permitted by the Acts, the
           Company shall not give, whether directly or indirectly and whether by
           means of a loan, guarantee, the provision of security or otherwise,
           any financial assistance for the purpose of or in

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           connection with a purchase or subscription made or to be made by any
           person for any shares in the Company or in its holding company.

                          PART III - SHARE CERTIFICATES

11.        ISSUE OF CERTIFICATES

           Every member shall be entitled without payment to one certificate for
           all the shares of each class held by him or several certificates each
           for one or more of his shares upon payment for every certificate
           after the first of such reasonable sum as the Directors may determine
           provided that the Company shall not be bound to issue more than one
           certificate for shares held jointly by several persons and delivery
           of a certificate to one joint holder shall be a sufficient delivery
           to all of them. Every certificate shall be sealed with the Seal and
           shall specify the number, class and distinguishing numbers (if any)
           of the shares to which it relates and the amount or respective
           amounts paid up thereon.

12.        BALANCE AND EXCHANGE CERTIFICATES

(a)        Where some only of the shares comprised in a share certificate are
           transferred the old certificate shall be cancelled and a new
           certificate for the balance of such shares shall be issued in lieu
           without charge.

(b)        Any two or more certificates representing shares of any one class
           held by any member may at his request be cancelled and a single new
           certificate for such shares issued in lieu without charge. If any
           member shall surrender for cancellation a share certificate
           representing shares held by him and request the Company to issue in
           lieu two or more share certificates representing such shares in such
           proportions as he may specify, the Directors may, if they think fit,
           comply with such request.

13.        RENEWAL OF CERTIFICATES

           If a share certificate is defaced, worn-out, lost, stolen or
           destroyed, it may be renewed on such terms (if any) as to evidence
           and indemnity and payment of the expenses incurred by the Company in
           investigating evidence as the Directors may determine but otherwise
           free of charge and (in the case of defacement or wearing-out) on
           delivery of the old certificate.

                            PART IV - LIEN ON SHARES

14.        EXTENT OF LIEN

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           The Company shall have a first and paramount lien on every share (not
           being a fully paid share) for all moneys (whether presently payable
           or not) payable at a fixed time or called in respect of that share.
           The Directors may at any time declare any share to be wholly or in
           part exempt from the provisions of this Article. The Company's lien
           on a share shall extend to all moneys payable in respect of it.

15.        POWER OF SALE

           The Company may sell in such manner as the Directors determine any
           share on which the Company has a lien if a sum in respect of which
           the lien exists is presently payable and is not paid within fourteen
           clear days after notice demanding payment (and stating that if the
           notice is not complied with the shares may be sold) has been given to
           the holder of the share or to the person entitled to it by reason of
           the death or bankruptcy of the holder.

16.        POWER TO EFFECT TRANSFER

           To give effect to a sale the Directors may authorise some person to
           execute an instrument of transfer of the shares sold to, or in
           accordance with the directions of, the purchaser. The transferee
           shall be entered in the Register as the holder of the shares
           comprised in any such transfer and he shall not be bound to see to
           the application of the purchase moneys nor shall his title to the
           shares be affected by any irregularity in or invalidity of the
           proceedings in reference to the sale.

17.        PROCEEDS OF SALE

           The proceeds of the sale, after payment of the costs, shall be
           applied in payment of so much of the sum for which the lien exists as
           is presently payable and any residue shall (upon surrender to the
           Company for cancellation of the certificate for the shares sold and
           subject to a like lien for any moneys not presently payable as
           existed upon the shares before the sale) be paid to the person
           entitled to the shares at the date of the sale.

                     PART V - CALLS ON SHARES AND FORFEITURE

18.        MAKING OF CALLS

           Subject to the terms of allotment, the Directors may make calls upon
           the members in respect of any moneys unpaid on their shares (whether
           in respect of nominal value or premium) and each member shall
           (subject to receiving at least fourteen clear days' notice specifying
           when and where payment is to be made) pay to the Company as required
           by the notice the amount called on his shares. A call may be required
           to be

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           paid by instalments. A call may, before receipt by the Company of a
           sum due thereunder, be revoked in whole or in part and payment of a
           call may be postponed in whole or in part. A person upon whom a call
           is made shall remain liable for calls made upon him notwithstanding
           the subsequent transfer of the shares in respect whereof the call was
           made.

19.        TIME OF CALL

           A call shall be deemed to have been made at the time when the
           resolution of the Directors authorising the call was passed.

20.        LIABILITY OF JOINT HOLDERS

           The joint holders of a share shall be jointly and severally liable to
           pay all calls in respect thereof.

21.        INTEREST ON CALLS

(a)        If a call remains unpaid after it has become due and payable the
           person from whom it is due and payable shall pay interest on the
           amount unpaid from the day it became due until the day it is paid at
           the rate fixed by the terms of allotment of the share or in the
           notice of the call or, if no rate is fixed, at the appropriate rate
           (as defined by the Companies (Amendment) Act 1983) but the Directors
           may waive payment of the interest in whole or in part.

(b)        The Directors may, if they think fit, receive from any member willing
           to advance the same, all or any part of the moneys uncalled and
           unpaid upon any shares held by him and upon all or any of the moneys
           so advanced may (until the same would, but for such advance, become
           payable) pay interest at such rate not exceeding (unless the Company
           in general meeting otherwise directs) 5 per cent per annum, as may be
           agreed upon between the Directors and the member paying such sum in
           advance.

22.        INSTALMENTS TREATED AS CALLS

           An amount payable in respect of a share on allotment or at any fixed
           date, whether in respect of nominal value or premium or as an
           instalment of a call, shall be deemed to be a call and if it is not
           paid the provisions of these Articles shall apply as if that amount
           had become due and payable by virtue of a call.

23.        POWER TO DIFFERENTIATE

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           Subject to the terms of allotment, the Directors may make
           arrangements on the issue of shares for a difference between the
           holders in the amounts and times of payment of calls on their shares.

24.        NOTICE REQUIRING PAYMENT

           If a call remains unpaid after it has become due and payable the
           Directors may give the person from whom it is due not less than
           fourteen clear days notice requiring payment of the amount unpaid
           together with any interest which may have accrued. The notice shall
           name the place where payment is to be made and shall state that if
           the notice is not complied with the shares in respect of which the
           call was made will be liable to be forfeited.

25.        FORFEITURE

           If the notice is not complied with any share in respect of which it
           was given may, before the payment required by the notice has been
           made, be forfeited by a resolution of the Directors and the
           forfeiture shall include all dividends or other moneys payable in
           respect of the forfeited share and not paid before the forfeiture.
           The Directors may accept a surrender of any share liable to be
           forfeited hereunder.

26.        POWER OF DISPOSAL

           Subject to the provisions of the Acts, a share forfeited (or
           surrendered in lieu thereof) may be sold, re-allotted or otherwise
           disposed of on such terms and in such manner as the Directors may
           determine either to the person who was before forfeiture the holder
           thereof or to any other person and at any time before any such sale,
           re-allotment or other disposition, the forfeiture may be cancelled on
           such terms as the Directors may think fit. Where for the purposes of
           its disposal such a share is to be transferred to any person the
           Directors may authorise some person to execute an instrument of
           transfer of the share to that person.

27.        EFFECT OF FORFEITURE

           A person any of whose shares have been forfeited or surrendered shall
           cease to be a member in respect of them and shall deliver to the
           Company for cancellation the certificate(s) for the shares forfeited
           or surrendered but shall remain liable to pay to the Company all
           moneys which at the date of forfeiture or surrender were payable by
           him to the Company in respect of those shares with interest at the
           rate at which interest was payable on those moneys before the
           forfeiture or, if no interest was so payable, at the appropriate rate
           (as defined in the Acts) from the date of forfeiture or surrender
           until the date of payment but the Directors may waive payment in
           whole or

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           in part or enforce payment without any allowance for the value of the
           shares at the time of forfeiture or surrender or for any
           consideration received on their disposal.

28.        STATUTORY DECLARATION

           A statutory declaration by a Director or the Secretary that a share
           has been forfeited or surrendered on a specified date shall be
           conclusive evidence of the facts stated in it as against all persons
           claiming to be entitled to the share and the declaration shall
           (subject to the execution of an instrument of transfer if necessary)
           constitute a good title to the share and the person to whom the share
           is disposed of shall be registered as the holder of the share and
           shall not be bound to see to the application of the consideration, if
           any, nor shall his title to the share be affected by any irregularity
           in or invalidity of the proceedings in reference to the forfeiture,
           surrender, sale, re-allotment or other disposal of the share.

                          PART VI - TRANSFER OF SHARES

29.        INSTRUMENT OF TRANSFER

           The instrument of transfer of any share shall be in writing in any
           usual form or in any other form which the Directors may approve. Any
           instrument of transfer shall be executed by or on behalf of the
           transferor and (except in the case of fully paid shares) by the
           transferee.

30.        REFUSAL TO REGISTER TRANSFER

(a)        The Directors may, in their absolute discretion and without giving
           any reason therefor, refuse to register the transfer of a share not
           being a fully paid share.

(b)        The Directors may also refuse to register any transfer (whether or
           not it is in respect of a fully paid share) unless:

           (i)      it is lodged at the Office or at such other place as the
                    Directors may appoint and is accompanied by the certificate
                    of the shares to which it relates and such other evidence
                    as the Directors may reasonably require to show the right
                    of the transferor to make the transfer;

           (ii)     it is in respect of only one class of shares; and

           (iii)    it is in favour of not more than four transferees.

31.        PROCEDURE ON REFUSAL

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           If the Directors refuse to register a transfer they shall, within two
           months after the date on which the transfer was lodged with the
           Company, send to the transferee notice of the refusal.

32.        CLOSING OF TRANSFER BOOKS

           The registration of transfers of shares or of transfers of any class
           of shares may be suspended at such times and for such periods (not
           exceeding thirty days in each year) as the Directors may determine.

33.        ABSENCE OF REGISTRATION FEES

           No fee shall be charged for the registration of any instrument of
           transfer or other document relating to or affecting the title to any
           share.

34.        RETENTION OF TRANSFER INSTRUMENTS

           The Company shall be entitled to retain any instrument of transfer
           which is registered, but any instrument of transfer which the
           Directors refuse to register shall be returned to the person lodging
           it when notice of the refusal is given.

                        PART VII - TRANSMISSION OF SHARES

35.        DEATH OF MEMBER

           If a member dies the survivor or survivors where he was a joint
           holder and his personal representatives where he was a sole holder or
           the only survivor of joint holders, shall be the only persons
           recognised by the Company as having any title to his interest in the
           shares, but nothing herein contained shall release the estate of a
           deceased member from any liability in respect of any share which has
           been jointly held by him.

36.        TRANSMISSION ON DEATH OR BANKRUPTCY

           A person becoming entitled to a share in consequence of the death or
           bankruptcy of a member may, upon such evidence being produced as the
           Directors may properly require, elect either to become the holder of
           the share or to have some person nominated by him registered as the
           transferee. If he elects to become the holder he shall give notice to
           the Company to that effect. If he elects to have another person
           registered he shall execute an instrument of transfer of the share to
           that person. All of these Articles relating to the transfer of shares
           shall apply to the notice or instrument of transfer as if it were an
           instrument of transfer executed by the member and the death or
           bankruptcy of the member had not occurred.

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37.        RIGHTS BEFORE REGISTRATION

           A person becoming entitled to a share by reason of the death or
           bankruptcy of a member (upon supplying to the Company such evidence
           as the Directors may reasonably require to show his title to the
           share) shall have the rights to which he would be entitled if he were
           the holder of the share, except that he shall not, before being
           registered as the holder of the share, be entitled in respect of it
           to attend or vote at any meeting of the Company or at any separate
           meeting of the holders of any class of shares in the Company, so,
           however, that the Directors may at any time give notice requiring any
           such person to elect either to be registered himself or to transfer
           the share, and if the notice is not complied with within ninety days,
           the Directors may thereupon withhold payment of all dividends,
           bonuses or other moneys payable in respect of the share until the
           requirements of the notice have been complied with.

                     PART VIII - ALTERATION OF SHARE CAPITAL

38.        INCREASE OF CAPITAL

           The Company may from time to time by ordinary resolution increase the
           share capital by such sum, to be divided into shares of such amount,
           as the resolution shall prescribe.

39.        CONSOLIDATION, SUB-DIVISION AND CANCELLATION OF CAPITAL

           The Company may by ordinary resolution:

           (i)      consolidate and divide all or any of its share capital into
                    shares of larger amount;

           (ii)     subject to the provisions of the Acts, subdivide its shares,
                    or any of them, into shares of smaller amount (and so that
                    the resolution whereby any share is sub-divided may
                    determine that, as between the holders of the shares
                    resulting from such sub-division, one or more of the
                    shares may, as compared with the others, have any such
                    preferred, deferred or other rights or be subject to any
                    restrictions as the Company has power to attach to unissued
                    or new shares); or

           (iii)    cancel any shares which, at the date of the passing of the
                    resolution, have not been taken or agreed to be taken by any
                    person and diminish the amount of its share capital by the
                    amount of the shares so cancelled.

40.        FRACTIONS ON CONSOLIDATION

           Subject to the provisions of these Articles, whenever as a result of
           a consolidation of shares any members would become entitled to
           fractions of a share, the Directors may,

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           on behalf of those members, either elect to sell the shares
           representing the fractions for the best price reasonably obtainable
           to any person and distribute the proceeds of sale in due proportion
           among those members, and the Directors may authorise some person to
           execute an instrument of transfer of the shares to, or in accordance
           with the directions of, the purchaser or elect, should they consider
           it appropriate, that no payment shall be made in respect of fractions
           of shares. The transferee shall not be bound to see to the
           application of the purchase money nor shall his title to the shares
           be affected by any irregularity in or invalidity of the proceedings
           in reference to the sale.

41.        REDUCTION OF CAPITAL

           The Company may by special resolution reduce its share capital, any
           capital redemption reserve fund or any share premium account in any
           manner and with and subject to any incident authorised, and consent
           required, by law.

                           PART IX - GENERAL MEETINGS

42.        ANNUAL GENERAL MEETING

           The Company shall in each year hold a general meeting as its annual
           general meeting in addition to any other meeting in that year, and
           shall specify the meeting as such in the notice calling it.

43.        EXTRAORDINARY GENERAL MEETING

           All general meetings other than annual general meetings shall be
           called extraordinary general meetings.

44.        CONVENING GENERAL MEETINGS

           The Directors may convene general meetings. Extraordinary general
           meetings may also be convened on such requisitions, or in default,
           may be convened by such requisitionists and in such manner as may be
           provided by the Acts. If at any time there are not within the State
           sufficient Directors capable of acting to form a quorum, any Director
           or any two members of the Company may convene an extraordinary
           general meeting in the same manner as nearly as possible as that in
           which general meetings may be convened by the Directors.

45.        NOTICE OF GENERAL MEETINGS

(a)        Subject to the provisions of the Acts allowing a general meeting to
           be called by shorter notice, an annual general meeting and an
           extraordinary general meeting called

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           for the passing of a special resolution shall be called by at least
           twenty-one clear days notice and all other extraordinary general
           meetings shall be called by at least fourteen clear days notice. The
           notice shall specify the time and place of the meeting and the
           general nature of the business to be transacted. It shall also give
           particulars of any Directors who are to retire by rotation or
           otherwise at the meeting and of any persons who are recommended by
           the Directors for appointment or re-appointment as Directors at the
           meeting, or in respect of whom notice has been duly given to the
           Company of the intention to propose them for appointment or
           re-appointment as Directors at the meeting. Subject to any
           restrictions imposed on any shares, notice shall be given to all the
           members, to all persons entitled to a share by reason of the death or
           bankruptcy of a member, to the Directors and the Auditors.

(b)        The accidental omission to give notice of a meeting to, or the
           non-receipt of notice of a meeting by, any person entitled to receive
           notice shall not invalidate the proceedings at the meeting.

                    PART X - PROCEEDINGS AT GENERAL MEETINGS

46.        QUORUM FOR GENERAL MEETINGS

(a)        No business other than the appointment of a chairman shall be
           transacted at any general meeting unless a quorum of members is
           present at the time when the meeting proceeds to business. Except as
           provided in relation to an adjourned meeting, three persons entitled
           to vote upon the business to be transacted and together holding not
           less than one-third of the voting share capital of the Company in
           issue, each being a member or a proxy for a member or a duly
           authorised representative of a corporate member, shall be a quorum.

(b)        If such a quorum is not present within half an hour from the time
           appointed for the meeting the meeting shall stand adjourned to the
           same day in the next week at the same time and place, or to such time
           and place as the Directors may determine. If at the adjourned meeting
           such a quorum is not present within half an hour from the time
           appointed for the meeting, one person entitled to be counted in a
           quorum present at the meeting shall be a quorum.

47.        CHAIRMAN OF GENERAL MEETINGS

(a)        The chairman of the Board of Directors or, in his absence, the deputy
           chairman (if any) or, in his absence, some other Director nominated
           by the Directors shall preside as the chairman at every general
           meeting of the Company. If at any general meeting

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           none of such persons shall be present within fifteen minutes after
           the time appointed for the holding of the meeting and willing to act,
           the Directors present shall elect one of their number to be the
           chairman of the meeting and, if there is only one Director present
           and willing to act, he shall be the chairman.

(b)        If at any meeting no Director is willing to act as the chairman or if
           no Director is present within fifteen minutes after the time
           appointed for holding the meeting, the members present shall choose
           one of their number to be the chairman of the meeting.

48.        DIRECTORS AND AUDITORS RIGHT TO ATTEND GENERAL MEETINGS

           A Director shall, notwithstanding that he is not a member, be
           entitled to attend and speak at any general meeting and at any
           separate meeting of the holders of any class of shares in the
           Company. The Auditors shall be entitled to attend any general meeting
           and to be heard on any part of the business of the meeting which
           concerns them as the Auditors.

49.        ADJOURNMENT OF GENERAL MEETINGS

           The chairman may, with the consent of a meeting at which a quorum is
           present (and shall if so directed by the meeting) adjourn the meeting
           from time to time (or sine die) and from place to place, but no
           business shall be transacted at any adjourned meeting other than
           business which might properly have been transacted at the meeting had
           the adjournment not taken place. Where a meeting is adjourned sine
           die, the time and place for the adjourned meeting shall be fixed by
           the Directors. When a meeting is adjourned for fourteen days or more
           or sine die, at least seven clear days' notice shall be given
           specifying the time and place of the adjourned meeting and the
           general nature of the business to be transacted. Save as aforesaid it
           shall not be necessary to give any notice of an adjournment.

50.        DETERMINATION OF RESOLUTIONS

           At any general meeting a resolution put to the vote of the meeting
           shall be decided on a show of hands unless before, or on the
           declaration of the result of, the show of hands a poll is duly
           demanded. Unless a poll is so demanded a declaration by the Chairman
           that a resolution has been carried or carried unanimously, or by a
           particular majority, or lost, or not carried by a particular majority
           and an entry to that effect in the minutes of the meeting shall be
           conclusive evidence of the fact without proof of the number or
           proportion of the votes recorded in favour of or against the
           resolution. The demand for a poll may, before the poll is taken, be
           withdrawn but only with the

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           consent of the chairman and a demand so withdrawn shall not be taken
           to have invalidated the result of a show of hands declared before the
           demand was made.

51.        ENTITLEMENT TO DEMAND A POLL

           Subject to the provisions of the Acts, a poll may be demanded:

           (i)      by the chairman of the meeting;

           (ii)     by at least three members present (in person or by proxy)
                    having the right to vote at the meeting;

           (iii)    by any member or members present (in person or by proxy)
                    representing not less than one-tenth of the total voting
                    rights of all the members having the right to vote at the
                    meeting; or

           (iv)     by a member or members present (in person or by proxy)
                    holding shares in the Company conferring the right to vote
                    at the meeting being shares on which an aggregate sum has
                    been paid up equal to not less than one-tenth of the total
                    sum paid up on all the shares conferring that right.

52.        TAKING OF A POLL

(a)        Except as provided in Article 52(b) a poll shall be taken in such
           manner as the chairman directs and he may appoint scrutineers (who
           need not be members) and fix a time and place for declaring the
           result of the poll. The result of the poll shall be deemed to be the
           resolution of the meeting at which the poll was demanded.

(b)        A poll demanded on the election of a chairman or on a question of
           adjournment shall be taken forthwith. A poll demanded on any other
           question shall be taken either forthwith or at such time (not being
           more than thirty days after the poll is demanded) and place as the
           chairman of the meeting may direct. The demand for a poll shall not
           prevent the continuance of a meeting for the transaction of any
           business other than the question on which the poll was demanded. If a
           poll is demanded before the declaration of the result of a show of
           hands and the demand is duly withdrawn, the meeting shall continue as
           if the demand had not been made.

(c)        No notice need be given of a poll not taken forthwith if the time and
           place at which it is to be taken are announced at the meeting in
           respect of which it is demanded. In any other case at least seven
           clear days notice shall be given specifying the time and place at
           which the poll is to be taken.

53.        WRITTEN RESOLUTION OF MEMBERS

                                     - 15 -
<PAGE>

           Subject to section 141 of the Companies Act 1963 a resolution in
           writing executed by or on behalf of each member who would have been
           entitled to vote upon it if it had been proposed at a general meeting
           shall be as valid and effective as if it had been passed at a general
           meeting duly convened and held and may consist of several instruments
           in the like form each executed by or on behalf of one or more
           members. If the resolution in writing is described as a special
           resolution or as an extraordinary resolution it shall have effect
           accordingly.

54.        VOTES OF MEMBERS

           Votes may be given either personally or by proxy. Subject to any
           rights or restrictions for the time being attaching to any class or
           classes of shares, on a show of hands every member present in person
           and every proxy shall have one vote, so, however, that no individual
           shall have more than one vote and, on a poll, every member shall have
           one vote for every share of which he is the holder.

55.        CHAIRMAN'S CASTING VOTE

           Where there is an equality of votes, whether on a show of hands or on
           a poll, the chairman of the meeting at which the show of hands takes
           place or at which the poll is demanded, shall be entitled to a
           casting vote in addition to any other vote he may have.

56.        VOTING BY JOINT HOLDERS

           Where there are joint holders of a share, the vote of the senior who
           tenders a vote, whether in person or by proxy, in respect of such
           share shall be accepted to the exclusion of the votes of the other
           joint holders and for this purpose, seniority shall be determined by
           the order in which the names of the holders stand in the Register.

57.        VOTING BY INCAPACITATED HOLDERS

           A member of unsound mind, or in respect of whom an order has been
           made by any court having jurisdiction (whether in the State or
           elsewhere) in matters concerning mental disorder may vote, whether on
           a show of hands or on a poll, by his committee, receiver, guardian or
           other person appointed by that court, and any such committee,
           receiver, guardian or other person may vote by proxy on a show of
           hands or on a poll. Evidence to the satisfaction of the Directors of
           the authority of the person claiming to exercise the right to vote
           shall be deposited at the Office or at such other place as is
           specified in accordance with these Articles for the deposit of
           instruments of proxy, not less than forty-eight hours before the time
           appointed for holding the meeting or

                                     - 16 -
<PAGE>

           adjourned meeting at which the right to vote is to be exercised and,
           in default, the right to vote shall not be exercisable.

58.        DEFAULT IN PAYMENT OF CALLS

           No member shall be entitled to vote at any general meeting or any
           separate meeting of the holders of any class of shares in the Company
           either in person or by proxy, in respect of any share held by him
           unless all moneys presently payable by him in respect of that share
           have been paid.

59.        TIME FOR OBJECTION TO VOTING

           No objection shall be raised to the qualification of any voter except
           at the meeting or adjourned meeting at which the vote objected to is
           tendered and every vote not disallowed at such meeting shall be
           valid. Any such objection made in due time shall be referred to the
           chairman of the meeting whose decision shall be final and conclusive.

60.        PROXY VOTING

           The instrument appointing a proxy shall be in writing in any usual
           form or in any other form which the Directors may approve and shall
           be executed by or on behalf of the appointor. The signature on such
           instrument need not be witnessed. A proxy need not be a member of the
           Company. A member may appoint more than one proxy to attend on the
           same occasion.

61.        DEPOSIT OF PROXY INSTRUMENTS

           The instrument appointing a proxy and any authority under which it is
           executed or a copy, certified notarially or in some other way
           approved by the Directors, shall be deposited at such place or one of
           such places (if any) within the State as may be specified for that
           purpose in or by way of note to the notice convening the meeting (or,
           if no place is so specified, at the Office) not less than forty-eight
           hours before the time appointed for the holding of the meeting or
           adjourned meeting or (in the case of a poll taken otherwise than at
           or on the same day as the meeting or adjourned meeting) for the
           taking of the poll at which it is to be used and, in default, shall
           not be treated as valid. Provided that:

           (i)      in the case of a meeting which is adjourned to, or a poll
                    which is to be taken on a date which is less than seven days
                    after the date of the meeting which was adjourned or at
                    which the poll was demanded, it shall be sufficient if the
                    instrument of proxy and any such authority and clarification
                    thereof as

                                     - 17 -
<PAGE>

                    aforesaid, is lodged with the Secretary at the
                    commencement of the adjourned meeting or the taking of the
                    poll; and

           (ii)     an instrument of proxy relating to more than one meeting
                    (including any adjournment thereof) having once been so
                    delivered for the purposes of any meeting shall not require
                    again to be delivered for the purposes of any subsequent
                    meeting to which it relates.

62.        EFFECT OF PROXY INSTRUMENTS

           Deposit of an instrument of proxy in respect of a meeting shall not
           preclude a member from attending and voting at the meeting or at any
           adjournment thereof. The instrument appointing a proxy shall, unless
           the contrary is stated therein, be valid as well as for any
           adjournment of the meeting as for the meeting to which it relates.

63.        EFFECT OF REVOCATION OF PROXY

           A vote given or poll demanded by proxy or by the duly authorised
           representative of a body corporate shall be valid notwithstanding the
           death or insanity of the principal or resignation of the authority of
           the person voting or demanding a poll unless notice of the
           determination was received by the Company at the Office before the
           commencement of the meeting or adjourned meeting at which the proxy
           is used or at such other place at which the instrument of proxy was
           duly deposited, before the commencement of the meeting or adjourned
           meeting at which the vote is given or the poll demanded or (in the
           case of a poll taken otherwise than on the same day as the meeting or
           adjourned meeting) the time appointed for taking the poll.

                               PART XI - DIRECTORS

64.        NUMBER OF DIRECTORS

           The number of Directors (other than alternate Directors) shall not be
           more than seven unless otherwise determined by ordinary resolution.

65.        ORDINARY REMUNERATION OF DIRECTORS

           The ordinary remuneration of the Directors shall from time to time be
           determined by an ordinary resolution of the Company and shall (unless
           such resolution shall otherwise provide) be divisible among the
           Directors as they may agree, or, failing agreement, equally, except
           that any Director who shall hold office for part only of the period
           in respect of which such remuneration is payable shall be entitled
           only to rank in such division for a proportion of the remuneration
           related to the period during which he has held office.

                                     - 18 -
<PAGE>

66.        SPECIAL REMUNERATION OF DIRECTORS

           Any Director who holds any executive office (including for this
           purpose the office of chairman or deputy chairman) or who serves on
           any committee, or who otherwise performs services which in the
           opinion of the Directors are outside the scope of the ordinary duties
           of a Director, may be paid such extra remuneration by way of salary,
           commission or otherwise as the Directors may determine.

67.        EXPENSES OF DIRECTORS

           The Directors may be paid all travelling, hotel and other expenses
           properly incurred by them in connection with their attendance at
           meetings of Directors or committess of Directors or general meetings
           or separate meetings of the holders of any class of shares or of
           debentures of the Company or otherwise in connection with the
           discharge of their duties.

68.        SHAREHOLDING QUALIFICATION

           The shareholding qualification for Directors may be fixed by the
           Company in general meeting and unless and until so fixed, no
           qualification shall be required.

69.        ALTERNATE DIRECTORS

(a)        Any Director other than an alternate may by writing under his hand
           appoint any person (including another Director) to be his alternate
           provided always that no such appointment of a person other than a
           Director as an alternate shall be operative unless and until such
           appointment shall have been approved by resolution of the Directors.

(b)        An alternate Director shall be entitled to receive notices of all
           meetings of the Directors and of all meetings of committees of the
           Directors of which his appointor is a member, to attend and vote at
           any such meeting at which the Director appointing him is not
           personally present and in the absence of his appointor to exercise
           all the powers, rights, duties and authorities of his appointor as a
           Director (other than the right to appoint an alternate hereunder).

(c)        Save as otherwise provided in these Articles, an alternate Director
           shall be deemed for all purposes to be a Director and shall alone be
           responsible for his own acts and defaults and he shall not be deemed
           to be the agent of the Director appointing him. The remuneration of
           such alternate Director shall be payable out of the remuneration paid
           to the Director appointing him and shall consist of such portion of
           the last

                                     - 19 -
<PAGE>

           mentioned remuneration as shall be agreed between the alternate and
           the Director appointing him.

(d)        A Director may at any time revoke the appointment of any alternate
           appointed by him. If a Director shall die or cease to hold the office
           of Director the appointment of his alternate shall thereupon cease
           and determine but if a Director retires by rotation or otherwise but
           is re-appointed or deemed to have been re-appointed at the meeting at
           which he retires, any appointment of any alternate Director made by
           him which was in force immediately prior to his retirement shall
           continue after his re-appointment.

(e)        Any appointment or revocation by a Director under this Article shall
           be effected by notice in writing given under his hand to the
           Secretary or deposited at the Office or in any other manner approved
           by the Directors.

                         PART XII - POWERS OF DIRECTORS

70.        DIRECTOR'S POWERS

           Subject to the provisions of the Acts, the Memorandum of Association
           of the Company and these Articles and to any directions given by
           ordinary resolution, the business of the Company shall be managed by
           the Directors who may exercise all the powers of the Company. No
           alteration of the Memorandum of Association of the Company or of
           these Articles and no such direction shall invalidate any prior act
           of the Directors which would have been valid if that alteration had
           not been made or that direction had not been given. The powers given
           by this Article shall not be limited by any special power given to
           the Directors by these Articles and a meeting of Directors at which a
           quorum is present may exercise all powers exercisable by the
           Directors.

71.        POWER TO DELEGATE

           The Directors may delegate any of their powers to any Managing
           Director or any Director holding any other executive office and to
           any committee consisting of one or more Directors. Any such
           delegation may be made subject to any conditions the Directors may
           impose, and either collaterally with or to the exclusion of their own
           powers and may be revoked. Subject to any such conditions, the
           proceedings of a committee with two or more members shall be governed
           by the provisions of these Articles regulating the proceedings of
           Directors so far as they are capable of applying.

72.        APPOINTMENT OF ATTORNEYS

                                     - 20 -
<PAGE>

           The Directors may from time to time and at any time by power of
           attorney appoint any company, firm or person or body of persons,
           whether nominated directly or indirectly by the Directors, to be the
           attorney or attorneys of the Company for such purposes and with such
           powers, authorities and discretions (not exceeding those vested in or
           exercisable by the Directors under these Articles) and for such
           period and subject to such conditions as they may think fit, and any
           such power of attorney may contain such provisions for the protection
           of persons dealing with any such attorney as the Directors may think
           fit, and may also authorise any such attorney to delegate all or any
           of the powers, authorities and discretions vested in him.

73.        LOCAL MANAGEMENT

           The Directors may establish any committees, local boards or agencies
           for managing any of the affairs of the Company, either in the State
           or elsewhere, and may appoint any persons to be members of such
           committees, local boards or agencies and may fix their remuneration
           and may delegate to any committee, local board or agent any of the
           powers authorities and discretions vested in the Board with power to
           sub-delegate and any such appointment or delegation may be made upon
           such terms and subject to such conditions as the Board may think fit,
           and the Board may remove any person so appointed, and may annul or
           vary any such delegation, but no person dealing in good faith without
           notice of any such annulment or variation shall be affected thereby.

74.        BORROWING POWERS.

(a)        Subject as hereinafter provided, the Directors may exercise all the
           powers of the Company to borrow money and to mortgage or charge its
           undertaking, property and uncalled capital and to issue debentures
           and other securities, whether outright or as collateral security for
           any debt, liability or obligation of the Company or for any third
           party.

(b)        The Directors may restrict the borrowings of the Company and
           exercise all voting and other rights or powers of control exercisable
           by the Company in relation to its subsidiary companies so as to
           secure that the aggregate amount for the time being remaining
           undischarged of all borrowed moneys (as hereinafter defined) shall
           not at any time without the previous sanction of an ordinary
           resolution of the Company exceed a sum equal to the amount paid up on
           the issued share capital of the Company plus the aggregate amount
           standing to the credit of the Company's consolidated capital and
           revenue reserves (including any share premium account or capital
           redemption reserve fund) ("the Share Capital and Consolidated
           Reserves").

                                     - 21 -
<PAGE>

(c)        The certificate of the Auditors as to the amount of the Share Capital
           and Consolidated Reserves at any time shall be conclusive and binding
           upon all concerned.

(d)        No person dealing with the Company or any of its subsidiaries shall
           by reason of the foregoing provision be concerned to see or enquire
           whether this limit is observed and no debt incurred or security had
           at the time when the debt was incurred or the security given in
           excess of such limit shall be invalid or ineffectual unless the
           lender or the recipient of the security are given express notice that
           the limit hereby imposed had been or would thereby be exceeded.

(e)        For the purposes of this Article the expression "Borrowed Moneys"
           means the principal amount of moneys borrowed by the Company and each
           subsidiary thereof as extracted from the latest published audited
           consolidated balance sheet of the Company and its subsidiaries
           provided that:

           (i)      moneys borrowed by the Company from and for the time being
                    owing to a subsidiary or by any subsidiary from and for the
                    time being owing to the Company or another subsidiary shall
                    not be included in the calculation of Borrowed Moneys;

           (ii)     moneys borrowed for the purpose of and within four months
                    applied in repaying other borrowed moneys shall not
                    themselves be taken into account until such application;

           (iii)    there shall be included in the meaning of such expression
                    such proportion of the money borrowed by any subsidiary as
                    the equity share capital of such subsidiary which is
                    benefically owned directly or indirectly by the Company
                    bears to the total equity share capital of such subsidiary
                    and the remainder of the money borrowed by such subsidiary
                    shall be excluded;

           (iv)     the principal amount (including any premium payable on final
                    redemption) of any debentures issued for a consideration
                    other than cash by the Company and/or any such subsidiary
                    shall be included in the meaning of such expression; and

           (v)      from the aggregate of the amounts which would apart from
                    this provision be regarded as Borrowed Moneys there shall be
                    deducted an amount equal to the principal amount of cash
                    balances held in hand or with banks by the Company and all
                    such subsidiaries.

(f)        The Directors may raise or secure the repayment of such sums in such
           manner and upon such terms and conditions in all respects as they
           think fit and, in particular, by the issue of bonds, perpetual or
           redeemable debentures or debenture stock, loan

                                     - 22 -
<PAGE>

           stock or any mortgage, charge or other security on the undertaking or
           the whole or any part of the property of the Company (both present
           and future) including its uncalled capital.

(g)        Debentures, debenture stock and other securities may be made
           assignable free from any equities between the Company and the person
           to whom the same may be issued. Subject to the provisions of the Acts
           any debentures, debenture stock, bonds or other securities may be
           issued at a discount premium or otherwise, and with any special
           privileges as to redemption, surrender, drawings, allotment of
           shares, attending and voting at general meetings of the Company,
           appointment of Directors or otherwise.

           PART XIII - APPOINTMENT, RETIREMENT AND DISQUALIFICATION OF
                                    DIRECTORS

75.        ELIGIBILITY FOR APPOINTMENT

           No person shall be appointed as a Director at any general meeting
           unless, not less than seven nor more than thirty clear days before
           the date appointed for the meeting, a notice executed by a member
           qualified to vote at the meeting has been given to the Company of the
           intention to propose that person for appointment stating, with
           respect to such person to be proposed, the particulars which would,
           if he were so appointed, be required to be included in the Company's
           Register of Directors together with a notice executed by that person
           of his willingness to be appointed.

76.        APPOINTMENT OF ADDITIONAL DIRECTORS

(a)        Subject as aforesaid the Company may by ordinary resolution appoint a
           person to be a Director either to fill a vacancy or as an additional
           Director.

(b)        The Directors may appoint a person who is willing to act to be a
           Director, either to fill a vacancy or as an additional Director
           provided that the appointment does not cause the number of Directors
           to exceed any number fixed by or in accordance with these Articles as
           the maximum number of Directors.

77.        RETIREMENT BY ROTATION

(a)        Subject to the provisions of these Articles, one-third of the
           Directors for the time being or, if their number is not three or a
           multiple of three, then the number nearest

                                     - 23 -
<PAGE>

           to, but not exceeding, one-third shall retire from office at each
           annual general meeting.

(b)        Subject to the provisions of the Acts and of these Articles, the
           Directors to retire at each annual general meeting shall be the
           Directors who have been longest in office since their last
           appointment. As between Directors of equal seniority, the Directors
           to retire shall, in the absence of agreement, be selected from among
           them by lot. Subject as aforesaid, a retiring Director shall be
           eligible for reappointment and shall act as a Director throughout the
           meeting at which he retires.

(c)        A retiring Director shall be eligible for re-election.

(d)        The Company may by ordinary resolution at the meeting at which any
           Director retires in the manner aforesaid fill the vacated office by
           appointing a person thereto and, in default, the retiring Director,
           if willing to act, shall be deemed to have been re-appointed unless
           at such meeting it is expressly resolved not to fill such vacated
           office or a resolution for the re-appointment of such Director shall
           have been put to the meeting and lost.

(e)        At a general meeting a motion for the appointment of two or more
           persons as Directors of the Company by a single resolution shall not
           be put unless a resolution that it shall be so put has been first
           agreed to by the meeting without any vote being given against it.

78.        DISQUALIFICATION OF DIRECTORS

           The office of a Director shall be vacated if:

           (i)      he ceases to be a Director by virtue of any provision of
                    the Acts, or he becomes prohibited or restricted by law
                    from being a Director;

           (ii)     he is adjudged a bankrupt in the State or in Northern
                    Ireland or Great Britain or in the United States of America
                    or makes any arrangement or composition with his creditors
                    generally and in the case of a Director domiciled in the
                    United States of America matters pertaining to the
                    bankruptcy or insolvency of that director or the rights of
                    creditors against him or in and to his estate shall be
                    determined pursuant to the laws of the State of his
                    domicile.;

           (iii)    he becomes prohibited or restricted from being a Director by
                    reason of any order made under Part VII of the Companies Act
                    1990;

                                     - 24 -
<PAGE>
           (iv)     in the opinion of a majority of his co-Directors he becomes
                    incapable by reason of mental disorder of discharging his
                    duties as a Director;

           (v)      he resigns his office by notice to the Company;

           (vi)     he is convicted of an indictable offence, unless the
                    Directors otherwise determine; or

           (vii)    he shall for more than six consecutive months have been
                    absent without permission of the Directors from meetings of
                    the Directors held during that period, and the Directors
                    pass a resolution that he has by reason of such absence
                    vacated office.

                  PART XIV - DIRECTORS' OFFICERS AND INTERESTS

79.        EXECUTIVE OFFICERS

(a)        The Directors may appoint one or more of their body to any executive
           office under the Company (including, where considered appropriate,
           the office of chairman) on such terms and for such period as they may
           determine and, without prejudice to the terms of any contract entered
           into in any particular case, may at any time revoke any such
           appointment.

(b)        The appointment of any Director to the office of chairman shall
           automatically determine if he ceases to be a Director but without
           prejudice to any claim for damages for breach of any contract of
           service between him and the Company.

(c)        The appointment of any Director to any other executive office shall
           not automatically determine if he ceases from any cause to be a
           Director unless the contract or resolution under which he holds
           office shall expressly state otherwise, in which event such
           determination shall be without prejudice to any claim for damages for
           breach of any contract of service between him and the Company.

80.        DIRECTORS' INTERESTS

a)         Subject to the provisions of the Acts, and provided that he had
           disclosed to the Directors the nature and extent of any material
           interest of his, a Director notwithstanding his office:

           (i)      may be a party to, or otherwise interested in, any
                    transaction or arrangement with the Company or any
                    subsidiary or associated company thereof or in which the
                    Company or any subsidiary or associated company
                    thereof is otherwise interested;

                                     - 25 -
<PAGE>
           (ii)     may be a Director or other officer of, or employed by, or a
                    party to any transaction or arrangement with, or otherwise
                    interested in, any body corporate promoted by the Company or
                    in which the Company or any subsidiary or associated company
                    thereof is otherwise interested;

           (iii)    shall not, by reason of his office, be accountable to the
                    Company for any benefit which he derives from any such
                    office or employment or from any such transaction or
                    arrangement or from any interest in any such body corporate
                    and no such transaction or arrangement shall be liable to be
                    avoided on the ground of any such interest or benefit;

(b)        For the purposes of this Article:

           (i)      a general notice given to the Directors that a Director is
                    to be regarded as having an interest of the nature and
                    extent specified in the notice in any transaction or
                    arrangement in which a specified person or class of persons
                    is interested shall be deemed to be a disclosure that the
                    Director has an interest in any such transaction of the
                    nature and extent so specified; and

           (ii)     an interest of which a Director has no knowledge and of
                    which it is unreasonable to expect him to have knowledge
                    shall not be treated as an interest of his.

81.        RESTRICTION ON DIRECTOR'S VOTING

(a)        Save as otherwise provided by these Articles a Director shall not
           vote at a meeting of the Directors or a committee of the Directors on
           any resolution concerning a matter in which he has, directly or
           indirectly, an interest or duty which is material and which conflicts
           or may conflict with the interests of the Company. A Director shall
           not be counted in the quorum present at a meeting in relation to a
           resolution on which he is not entitled to vote.

(b)        A Director shall (in the absence of some other material interest than
           is indicated below) be entitled to vote (and be counted in the
           quorum) in respect of any resolutions concerning any of the following
           matters, namely:

           (i)      the giving of any security, guarantee or indemnity to him in
                    respect of money lent by him to the Company or any of its
                    subsidiary or associated companies or obligations incurred
                    by him at the request of or for the benefit of the Company
                    or any of its subsidiary or associated companies;

           (ii)     the giving of any security, guarantee or indemnity to a
                    third party in respect of a debt or obligation of the
                    Company or any of its subsidiary or associated companies for
                    which he himself has assumed responsibility in

                                     - 26 -
<PAGE>
                    whole or in part and whether alone or jointly with others
                    under a guarantee or indemnity or by the giving of security;

           (iii)    any subscription by him or agreement by him to subscribe for
                    shares or debentures or other securities of the Company or
                    any of its subsidiary or associated companies or any
                    proposal concerning any offer of shares or debentures or
                    other securities of or by the Company or any of its
                    subsidiary or associated companies for subscription,
                    purchase or exchange in which offer he is or is to be
                    interested as a participant in the underwriting or
                    sub-underwriting thereof;

           (iv)     any proposal concerning any other company in which he is
                    interested, directly or indirectly and whether as an officer
                    or shareholder or otherwise howsoever, provided that he is
                    not the holder of or beneficially interested in 1% or more
                    of the issued shares of any class of such company or of the
                    voting rights available to members of the relevant company
                    (any such interest being deemed for the purposes of this
                    Article to be a material interest in all circumstances); or

           (v)      any proposal concerning the adoption, modification or
                    operation of a superannuation fund or retirement benefits
                    scheme under which he may benefit and which has been
                    approved by or is subject to and conditional upon approval
                    for taxation purposes by the appropriate Revenue
                    authorities.

(c)        Where proposals are under consideration concerning the appointment
           (including fixing or varying the terms of appointment) of two or more
           Directors to offices or employments with the Company or any company
           in which the Company is interested, such proposals may be divided and
           considered in relation to each Director separately and in such case
           each of the Directors concerned (if not debarred from voting under
           sub-paragraph (b)(iv) of this Article) shall be entitled to vote (and
           be counted in the quorum) in respect of each resolution except that
           concerning his own appointment.

(d)        If a question arises at a meeting of Directors or of a committee of
           the Directors as to the materiality of a Director's interest or as to
           the right of any Director to vote and such question is not resolved
           by his voluntarily agreeing to abstain from voting, such question
           may, before the conclusion of the meeting, be referred to the meeting
           of Directors and their ruling in relation to any Director other than
           himself shall be final and conclusive, in the event of an equality of
           votes the chairman of the Meeting shall have a second or casting
           vote.

                                     - 27 -
<PAGE>

(e)        The Company may by ordinary resolution suspend or relax the
           provisions of this Article to any extent or ratify any transaction
           not duly authorised by reason of a contravention of this Article.

(f)        For the purposes of this Article, an interest of a person who is the
           spouse or a minor child of a Director shall be treated as an interest
           of the Director and in relation to an alternate Director, an interest
           of his appointor shall be treated as an interest of the alternate
           Director.

82.        ENTITLED TO GRANT PENSIONS

           The Directors may provide benefits, whether by way of pensions,
           gratuities or otherwise for any Director, former Director or other
           officer or former officer of the Company or to any person who holds
           or has held any employment with the Company or with any body
           corporate which is or has been a subsidiary or associated company of
           the Company or a predecessor in business of the Company or of any
           such subsidiary or associated company and to any member of his family
           or any person who is or was dependent on him and may set up,
           establish, support, alter, maintain and continue any scheme for
           providing such benefits and for such purposes any Director may
           accordingly be, become or remain a member of, or rejoin any scheme
           and receive or retain for his own benefit all benefits to which he
           may be or become entitled thereunder. The Directors may pay out of
           the funds of the Company any premiums, contributions or sums payable
           by the Company under the provisions of any such scheme in respect of
           any of the persons or class of persons above referred to who are or
           may be or become members thereof.

                       PART XV - PROCEEDINGS OF DIRECTORS

83.        REGULATION AND CONVENING OF DIRECTORS' MEETINGS

           Subject to the provisions of these Articles the Directors may
           regulate their proceedings as they think fit. A Director may, and the
           Secretary at the request of a Director shall, call a meeting of the
           Directors. Any Director may waive notice of any meeting and any such
           waiver may be retrospective. If the Directors so resolve, it shall
           not be necessary to give notice of a meeting of Directors to any
           Director or alternate Director who, being a resident in the State, is
           for the time being absent from the State.

84.        VOTING AT DIRECTORS' MEETINGS

                                     - 28 -
<PAGE>

           Questions arising at any meeting of Directors shall be decided by a
           majority of votes. Where there is an equality of votes, the chairman
           of the meeting shall have a second or casting vote. A Director who is
           also an alternate Director for one or more Directors shall be
           entitled in the absence of any such appointor from a meeting to a
           separate vote at such meeting on behalf of each such appointor in
           addition to his own vote.

85.        QUORUM FOR DIRECTORS' MEETINGS

(a)        The quorum for the transaction of the business of the Directors may
           be fixed by the Directors and unless so fixed at any other number
           shall be two. A person who holds office only as an alternate Director
           shall, if his appointor is not present, be counted in the quorum but
           notwithstanding that such person may act as alternate Director for
           more than one Director he shall not count as more than one for the
           purposes of determining whether a quorum is present.

(b)        The continuing Directors or a sole Director may act notwithstanding
           any vacancies in their number but, if the number of Directors is less
           than the number fixed as the quorum, they may act only for the
           purpose of filling vacancies or of calling a general meeting.

86.        TELECOMMUNICATION MEETINGS

           Any Director or alternate Director may participate in a meeting of
           the Directors or any committee of the Directors by means of
           conference telephone or other telecommunications equipment by means
           of which all persons participating in the meeting can hear each other
           and such participation in a meeting shall constitute presence in
           person at the meeting.

87.        CHAIRMAN OF BOARD OF DIRECTORS

           Subject to any appointment to the office of chairman made pursuant to
           these Articles the Directors may elect a chairman of their meetings
           and determine the period for which he is to hold office, but if no
           such chairman is elected, or, if at any meeting the chairman is
           unwilling to act or is not present within ten minutes after the time
           appointed for holding the same, the Directors present may choose one
           of their number to be chairman of the meeting.

88.        VALIDITY OF ACTS OF DIRECTORS

           All acts done by any meeting of the Directors or of a committee of
           the Directors or by any person acting as a Director shall,
           notwithstanding that it be afterwards

                                    - 29 -
<PAGE>

           discovered that there was some defect in the appointment of any such
           Director or person acting as aforesaid, or that they or any of them
           were disqualified from holding office or had vacated office, be as
           valid as if every such person had been duly appointed and was
           qualified and had continued to be a Director and had been entitled to
           vote.

89.        DIRECTORS' RESOLUTIONS IN WRITING

           A resolution in writing signed by all the Directors entitled to
           receive notice of a meeting of Directors or of a committee of
           Directors shall be as valid as if it had been passed at a meeting of
           Directors or (as the case may be) a committee of Directors duly
           convened and held and may consist of several documents in the like
           form each signed by one or more Directors but a resolution signed by
           an alternate Director need not also be signed by his appointor and,
           if it is signed by a Director who has appointed an alternate
           Director, it need not be signed by an alternate Director in that
           capacity.

                            PART XVI - THE SECRETARY

90.        APPOINTMENT OF SECRETARY

           The Secretary shall be appointed by the Directors for such term, at
           such remuneration and upon such conditions as they may think fit and
           any Secretary so appointed may be removed by them.

91.        ASSISTANT SECRETARY

           The Directors may appoint an assistant or deputy secretary and any
           provision in these Articles requiring or authorising a thing to be
           done by or to the Secretary shall be satisfied by it being done by or
           to the assistant or deputy secretary. A provision of the Acts or
           these regulations requiring or authorising a thing to be done by or
           to a Director and the Secretary shall not be satisfied by its being
           done by or to the same person acting both as Director and as, or in
           the place of, the Secretary.

                              PART XVII - THE SEAL

92.        USE OF SEAL

           The Directors shall ensure that the common seal of the Company kept
           pursuant to the Acts shall only be used by the authority of the
           Directors or of a committee authorised by the Directors.

                                     - 30 -
<PAGE>

93.      SEAL FOR USE ABROAD

         The Company may exercise the powers conferred by the Acts with regard
         to having an official seal for use abroad and such powers shall be
         vested in the Directors.

94.      SIGNATURE OF SEALED INSTRUMENTS

         Every instrument to which either such seal shall be affixed shall be
         signed by:

         (i)      A Director or some other person appointed by the Directors
                  for the purpose: and

         (ii)     the Secretary or a Director or some other person appointed by
                  the Directors for the purpose (being in
                  all cases a person other than the person who signed the
                  instrument under sub-paragraph (i) of this Article), save
                  that as regards any certificates for shares or debentures or
                  other securities of the Company the Directors may by
                  resolution determine that such signatures or either of them
                  shall be dispensed with, printed thereon or affixed thereto
                  by any method or system of mechanical signature.

                       PART XVIII - DIVIDENDS AND RESERVES

95.      DECLARATION OF DIVIDENDS

         Subject to the provisions of the Acts, the Company may by ordinary
         resolution declare dividends in accordance with the respective rights
         of the members, but no dividend shall exceed the amount recommended by
         the Directors. Any dividend recommended by the Directors and declared
         by the Company may be in Euros or, in whole or in part, in such other
         currency or currencies as the Directors may from time to time decide.

96.      INTERIM AND FIXED DIVIDENDS

         Subject always to the provisions of the Acts, the Directors may pay
         interim dividends if it appears to them that they are justified by the
         profits of the Company available for distribution. Subject always to
         the provisions of the Acts, if the share capital is divided into
         different classes, the Directors may pay interim dividends on shares
         which confer deferred or non-preferred rights with regard to dividend
         as well as on shares which confer preferential rights with regard to
         dividend, but no interim dividend shall be paid on shares carrying
         deferred or non-preferred rights if, at the time of payment, any
         preferential dividend is in arrears. Subject as aforesaid the Directors
         may also pay at intervals settled by them any dividend payable at a
         fixed

                                     - 31 -
<PAGE>

         rate if it appears to them that the profits available for
         distribution justify the payment. Interim dividends may be paid in
         Euros or, in whole or in part, in such other currency or currencies
         as the Directors may from time to time decide. Provided the Directors
         act in good faith they shall not incur any liability to the holders
         of shares conferring preferred rights for any loss they may suffer by
         the lawful payment of an interim dividend on any shares having
         deferred or non-preferred rights.

97.      PAYMENT OF DIVIDENDS

         Except as otherwise provided by the rights attaching to shares, all
         dividends shall be declared and paid according to the amounts paid up
         on the shares on which the dividend is paid. Subject as aforesaid, all
         dividends shall be apportioned and paid proportionately to the amounts
         paid or credited as paid on the shares during any portion or portions
         of the period in respect of which the dividend is paid but if any share
         is issued on terms providing that it shall rank for dividend as from a
         particular date, such share shall rank for dividend accordingly. All
         dividends shall be paid in the currency or currencies in which they
         have been declared, save as the Directors may otherwise decide from
         time to time.

98.      DEDUCTIONS FROM DIVIDENDS

         The Directors may deduct from any dividend or other moneys payable to
         any member in respect of a share any moneys presently payable by him to
         the Company in respect of that share on account of calls or otherwise
         in relation to the shares of the Company.

99.      DIVIDENDS IN SPECIE

         A general meeting declaring a dividend may, upon the recommendation of
         the Directors, direct that it shall be satisifed wholly or partly by
         the distribution of assets (and, in particular, of paid up shares,
         debentures or debenture stock of any other company or in any one or
         more of such ways) and the Directors shall give effect to such
         resolution. Where any difficulty arises in regard to the distribution,
         the Directors may settle the same as they think expedient, and in
         particular may issue fractional certificates and fix the value for
         distribution of such specific assets or any part thereof and may
         determine that cash payments shall be made to any members upon the
         footing of the value so fixed in order to adjust the rights of all the
         parties and may vest any such specific assets in trustees.

100.     PAYMENT OF DIVIDENDS BY POST

         Any dividend or other moneys payable in respect of any share may be
         paid by cheque or warrant sent by post to the registered address of
         the holder or, where

                                     - 32 -
<PAGE>

           there are joint holders, to the registered address of that one of the
           joint holders who is first named on the Register or to such person
           and to such address as the holder or joint holders may in writing
           direct. Every such cheque or warrant shall be made payable to the
           order of the person to whom it is sent and payment of the cheque or
           warrant shall be a good discharge to the Company. Any joint holder or
           other person jointly entitled to a share as aforesaid may give
           receipts for any dividend or other moneys payable in respect of the
           share.

101.       DIVIDENDS NOT TO BEAR INTEREST

           No dividend or other moneys payable in respect of a share shall bear
           interest against the Company unless otherwise provided by the rights
           attached to the shares.

102.       PAYMENT TO HOLDERS ON A PARTICULAR DATE

           Any resolution declaring a dividend on shares of any class, whether a
           resolution of the Company in general meeting or a resolution of the
           Directors, may specify that the same may be payable to the persons
           registered as the holders of such shares at the close of business on
           a particular date, notwithstanding that it may be a date prior to
           that on which the resolution is passed, and thereupon the dividend
           shall be payable to them in accordance with their respective holdings
           so registered, but without prejudice to the rights inter se in
           respect of such dividend of transferors and transferees of any such
           shares. The provisions of this Article shall mutatis mutandis apply
           to captialisations to be effected pursuant to these Articles.

103.       UNCLAIMED DIVIDENDS

           Any dividend which has remained unclaimed for twelve years from the
           date of its declaration shall, if the Directors so resolve, be
           forfeited and cease to remain owing by the Company. The payment by
           the Directors of any unclaimed dividend or other moneys payable in
           respect of a share into a separate account shall not constitute the
           Company a trustee in respect thereof.

                PART XIX - CAPITALISATION OF PROFITS OR RESERVES

104.       CAPITALISATION OF DISTRIBUTABLE PROFITS AND RESERVES.

           The Company in general meeting may, upon the recommendation of the
           Directors, resolve that any sum for the time being standing to the
           credit of any of the Company's reserves (including any capital
           redemption reserve fund or share premium account) or to the credit of
           the profit and loss account be capitalised and

                                     - 33 -
<PAGE>

           applied on behalf of the members who would have been entitled to
           receive that sum if it had been distributed by way of dividend and in
           the same proportions either in or towards paying up amounts for the
           time being unpaid on any shares held by them respectively, or in
           paying up in full unissued shares or debentures of the Company of a
           nominal amount equal to the sum capitalised (such shares or
           debentures to be allotted and distributed credited as fully paid up
           to and amongst such holders in the proportions aforesaid) or partly
           in one way and partly in another, so however, that the only purpose
           for which sums standing to the credit of the capital redemption
           reserve fund or the share premium account shall be applied shall be
           those permitted by the Acts.

105.       CAPITALISATION OF NON-DISTRIBUTABLE PROFITS AND RESERVES

           The Company in general meeting may, on the recommendation of the
           Directors resolve that it is desirable to capitalise any part of the
           amount for the time being standing to the credit of any of the
           Company's reserve accounts or to the credit of the profit and loss
           account which is not available for distribution by applying such sum
           in paying up in full unissued shares to be allotted as fully paid
           bonus shares to those members of the Company who would have been
           entitled to that sum if it were distributable and had been
           distributed by way of dividend (and in the same proportions) and the
           Directors shall give effect to such resolution.

106.       IMPLEMENTATION OF CAPITALISATION ISSUES

           Whenever such a resolution is passed in pursuance of either of the
           two immediately preceding Articles the Directors shall make all
           appropriations and applications of the undivided profits resolved to
           be capitalised thereby and all allotments and issues of fully paid
           shares or debentures, if any, and generally shall do all acts and
           things required to give effect thereto with full power to the
           Directors to make such provisions as they shall think fit for the
           case of shares or debentures becoming distributable in fractions
           (and, in particular, without prejudice to the generality of the
           foregoing, either to disregard such fractions or to sell the shares
           or debentures represented by such fractions and distribute the net
           proceeds of such sale to and for the benefit of the Company or to and
           for the benefit of the members otherwise entitled to such fractions
           in due proportions) and also to authorise any person to enter on
           behalf of all the members concerned into an agreement with the
           Company providing for the allotment to them respectively credited as
           fully paid up, of any further shares or debentures to which they may
           become entitled on such capitalisation or, as the case may require,
           for the payment up by the application thereto of their respective
           proportions of the profits resolved

                                     - 34 -
<PAGE>

           to be capitalised of the amounts remaining unpaid on their existing
           shares and any agreement made under such authority shall be binding
           on all such members.

                                PART XX - NOTICES

107.       NOTICE IN WRITING

           Any notice to be given, served or delivered pursuant to these
           Articles shall be in writing.

108.       SERVICE OF NOTICES.

(a)        A notice or document (including a share certificate) to be given,
           served or delivered in pursuance of these Articles may be given to,
           served on or delivered by the Company to any member:

           (i)    by handing the same to him or his authorised agent;

           (ii)   by leaving the same at his registered address;

           (iii)  by sending the same by facsimile transmission; or

           (iv)   by sending the same by post in a pre-paid envelope addressed
                  to him at his registered address.

(b)        Where a notice or document is given, served or delivered pursuant to
           sub-paragraphs (a)(i), (ii) or (iii) of this Article, the giving,
           service or delivery thereof shall be deemed to have been effected at
           the time the same was handed to the member or his authorised agent or
           left at his registered address or upon receipt by facsimile (as the
           case may be).

(c)        Where a notice or document is given, served or delivered pursuant to
           sub-paragraph (a)(iv) of this Article the giving, service or delivery
           thereof shall be deemed to have been effected at the expiration of
           twenty-four hours after the envelope containing it was posted. In
           proving such service or delivery it shall be sufficient to prove that
           such envelope was properly addressed, stamped and posted.

(d)        Without prejudice to the provisions of sub-paragraphs (a)(i),
           (a)(ii) and (a)(iii) of this Article, if at any time by reason of the
           suspension or curtailment of postal services within the State, the
           Company is unable effectively to convene a general meeting by notices
           sent through the post, a general meeting may be convened by a notice
           advertised on the same date in at least one national daily newspaper
           in the State (and one national daily newspaper in the United Kingdom
           and the Wall Street Journal in the United States of America) and such
           notice shall be deemed to have

                                     - 35 -
<PAGE>

           been duly served on all members entitled thereto at noon on the day
           on which the said advertisement shall appear. In any such case the
           Company shall send confirmatory copies of the notice through the post
           to those members whose registered addresses are outside the State (if
           or to the extent that in the opinion of the Directors it is practical
           so to do) or are in areas of the State unaffected by such suspension
           or curtailment of postal services and if at least ninety-six hours
           prior to the time appointed for the holding of the meeting the
           posting of notices to members in the State or any part thereof which
           was previously effected, has again in the opinion of the Directors,
           become practical the Directors shall forthwith send confirmatory
           copies of the notice by post to such members. The accidental omission
           to give any such confirmatory copy of a notice of a meeting to, or
           the non-receipt of any such confirmatory copy by, any person entitled
           to receive the same shall not invalidate the proceedings at the
           meeting.

(e)        Notwithstanding anything contained in this Article the Company shall
           not be obliged to take account of or make any investigations as to
           the existence of any suspension or curtailment of postal services
           within or in relation to all or any part of any jurisdiction or other
           area other than the State.

109.       SERVICE ON JOINT HOLDERS

           A notice may be given by the Company to the joint holders of a share
           by giving the notice to the joint holder whose name stands first in
           the Register in respect of the share and notice so given shall be
           sufficient notice to all the joint holders.

110.       SERVICE ON TRANSFER OR TRANSMISSION OF SHARES

(a)        Every person who becomes entitled to a share shall be bound by any
           notice in respect of that share which, before his name is entered in
           the Register in respect of the share, has been duly given to a person
           from whom he derives his title.

(b)        Without prejudice to the provisions of these Articles allowing a
           meeting to be convened by newspaper advertisement a notice may be
           given by the Company to the persons entitled to a share in
           consequence of the death or bankruptcy of a member by sending or
           delivering it, in any manner authorised by these Articles for the
           giving of notice to a member, addressed to them at the address, if
           any, supplied by them for that purpose. Until such an address has
           been supplied, a notice may be given in any manner in which it might
           have been given if the death or bankruptcy had not occurred.

                                     - 36 -
<PAGE>

111.       SIGNATURE TO NOTICES

           The signature to any notice to be given by the Company may be written
           or printed.

112.       DEEMED RECEIPT OF NOTICES

           A member present, either in person or by proxy, at any meeting of the
           Company or the holders of any class of shares in the Company shall be
           deemed to have received notice of the meeting and, where requisite,
           of the purposes for which it was called.

                              PART XXI - WINDING UP

113.       DISTRIBUTION ON WINDING UP

           If the Company shall be wound up and the assets available for
           distribution among the members shall be insufficient to repay the
           whole of the paid up or credited as paid up share capital, such
           assets shall be distributed so that, as nearly as may be, the losses
           shall be borne by the members in proportion to the capital paid up or
           credited as paid up at the commencement of the winding up on the
           shares held by them respectively. If on a winding up the assets
           available for distribution among the members shall be more than
           sufficient to repay the whole of the share capital paid up or
           credited as paid up at the commencement of the winding up, the excess
           shall be distributed among the members in proportion to the capital
           at the commencement of the winding up paid up or credited as paid up
           on the said shares held by them respectively. Provided that this
           Article shall not affect the rights of the holders of shares issued
           upon special terms and conditions.

114.       DISTRIBUTION IN SPECIE

           If the Company is wound up, the Liquidator may with the sanction of a
           special resolution of the Company and any other sanction required by
           the Acts, divide among the members in specie or kind the whole or any
           part of the assets of the Company (whether they shall consist of
           property of the same kind or not) and may, for such purpose, value
           any assets and determine how the division shall be carried out as
           between the members or different classes of members. The Liquidator
           may, with the like sanction, vest the whole or any part of such
           assets in trustees upon such trusts for the benefit of the
           contributories as he, with the like sanctions determines, but so that
           no member shall be compelled to accept any assets upon which there is
           a liability.

                            PART XXII - MISCELLANEOUS

                                     - 37 -
<PAGE>

115.       INSPECTION OF BOOKS ETC.  BY MEMBERS

           The Directors shall from time to time determine whether and to what
           extent and at what times and places and under what conditions or
           regulations the accounts and books of the Company or any of them
           shall be open to the inspection of members, not being Directors, and
           non members (not being a Director) shall not have any right of
           inspecting any account or book or document of the Company except as
           conferred by the Acts or authorised by the Directors or by the
           Company in general meeting and no member, not being a Director, shall
           be entitled to require or receive any information concerning the
           business, trading or customers of the Company or any trade secret or
           secret process of or used by the Company.

116.       DESTRUCTION OF RECORDS

           The Company shall be entitled to destroy all instruments of transfer
           which have been registered at any time after the expiration of six
           years from the date of registration thereof, all notifications of
           change of address at any time after the expiration of two years from
           the date of recording thereof and all share certificates and dividend
           mandates which have been cancelled or ceased to have effect at any
           time after the expiration of one year from the date of such
           cancellation or cessation. It shall be conclusively presumed in
           favour of the Company that every entry in the Register purporting to
           have been made on the basis of an instrument of transfer or other
           document so destroyed was duly and properly made and every instrument
           duly and properly registered and every share certificate so destroyed
           was a valid and effective document duly and properly cancelled and
           every other document hereinbefore mentioned so destroyed was a valid
           and effective document in accordance with the recorded particulars
           thereof in the books or records of the Company. Provided always that:

           (a)      the provision aforesaid shall apply only to the destruction
                    of a document in good faith and without notice of any claim
                    (regardless of the parties thereto) to which the document
                    might be relevant;

           (b)      nothing herein contained shall be construed as imposing upon
                    the Company any liability in respect of the destruction of
                    any document earlier than as aforesaid or in any other
                    circumstances which would not attach to the Company in the
                    absence of this Article; and

           (c)      reference herein to the destruction of any document include
                    references to the disposal thereof in any manner.

117.       UNTRACED SHAREHOLDERS

                                     - 38 -
<PAGE>

(a)        The Company shall be entitled to sell at the best price reasonably
           obtainable any share of a holder or any share to which a person
           is entitled by transmission if and provided that:

           (i)      for a period of twelve years no cheque or warrant sent by
                    the Company through the post in a pre-paid letter
                    addressed to the holder or to the person entitled by
                    transmission to the share at his address on the
                    Register or other the last known address given by the
                    holder or the person entitled by transmission to which
                    cheques and warrants are to be sent has been cashed and no
                    communication has been received by the Company from the
                    holder or the person entitled by transmission (provided that
                    during such twelve year period as least three dividends
                    shall have become payable in respect of such share);

           (ii)     the Company has at the expiration of the said period of
                    twelve years by advertisement in a national newspaper in
                    both the State and the United Kingdom and in a newspaper
                    circulated in the area in which the address referred to in
                    sub-paragraph (a)(i) of this Article is located given notice
                    of its intention to sell such share;

           (iii)    the Company has not during the further period of three
                    months after the date of the advertisement and prior to the
                    exercise of the power of sale received any communication
                    from the holder or person entitled by transmission.

(b)        To give effect to any such sale the Company may appoint any person to
           execute as transferor an instrument of transfer of such share and
           such instrument of transfer shall be as effective as if it had been
           executed by the holder or the person entitled by transmission to such
           share. The transferee shall be entered in the Register as the holder
           of the shares comprised in any such transfer and he shall not be
           bound to see to the application of the purchase moneys nor shall his
           title to the shares be affected by any irregularity in or invalidity
           of the proceedings in reference to the sale.

(c)        The Company shall account to the holder or other person entitled to
           such share for the net proceeds of such sale by carrying all moneys
           in respect thereof to a separate account which shall be a debt of the
           Company and the Company shall be deemed to be a debtor and not a
           trustee in respect thereof for such holder or other person. Moneys
           carried to such separate account may either be employed in the
           business of the Company or invested in such investments as the
           Directors may from time to time think fit.

                                     - 39 -
<PAGE>

(d)        Any such amount carried to a separate account which has remained
           unclaimed for twelve years from the date it was carried to such
           account shall, if the Directors so resolve, be forfeited and cease to
           remain owing by the Company.

118.       INDEMNITY

           Subject to the provisions of and so far as may be allowed by the
           Acts, every Director, Managing Director, Auditor, Secretary or other
           officer of the Company shall be entitled to be indemnified by the
           Company against all costs, charges, losses, expenses and liabilities
           incurred by him in the execution and discharge of his duties or in
           relation thereto including any liability incurred by him in defending
           any proceedings, civil or criminal, which relate to anything done or
           omitted or alleged to have been done or omitted by him as an officer
           or employee of the Company and in which judgment is given in his
           favour (or the proceedings are otherwise disposed of without any
           finding or admission of any material breach of duty on his part) or
           in which he is acquitted or in connection with any application under
           any statute for relief from liability in respect of any such act or
           omission in which relief is granted to him by the Court.

                                     - 40 -
<PAGE>

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

      NAMES, ADDRESSES AND DESCRIPTIONS of SUBSCRIBERS

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

Bridget Trant,
Highdown Hill,
Newcastle,
County Dublin

Formations Manager

Susan Lawless,
14 Springhill Park,
Blackrock,
County Dublin

Systems Manager

                        Dated this 25th day of July 1989

Witness to the above signatures:                  Geraldine Reynolds
                                                  39 Birchwood Heights
                                                  Dublin 24
                                                  Secretary

                                     - 41 -<PAGE>
                         MERCURY COMPUTER SYSTEMS, INC.
                             1997 STOCK OPTION PLAN

         1.       PURPOSE OF THE PLAN.

         This stock option plan (the "Plan") is intended to encourage ownership
of the stock of Mercury Computer Systems, Inc. (the "Company") by employees and
advisors of the Company and its subsidiaries, to induce qualified personnel to
enter and remain in the employ of the Company or its subsidiaries and otherwise
to provide additional incentive for optionees to promote the success of its
business.

         2.       STOCK SUBJECT TO THE PLAN.

         (a) The maximum number of shares of common stock, par value $.01 per
share, of the Company (the "Common Stock") for which options may be granted
under this Plan shall be five million six hundred fifty thousand (5,650,000)
shares. The maximum number of shares of Common Stock available for granting
incentive stock options under this Plan shall be five million six hundred fifty
thousand (5,650,000) shares. These limitations and all other limitations on the
number of shares referenced in this Plan shall be subject to adjustment as
provided in Section 12 of the Plan. Shares issued under the Plan may be
authorized but unissued shares of Common Stock, or shares of Common Stock held
in treasury by the Company.

          (b) If an option granted hereunder shall expire or terminate for any
reason without having vested fully or having been exercised in full, the
unvested and/or unpurchased shares subject thereto shall again be available for
subsequent option grants under the Plan.

         (c) Stock issuable upon exercise of an option granted under the Plan
may be subject to such restrictions on transfer, repurchase rights or other
restrictions as shall be determined by the Committee.

         3.       ADMINISTRATION OF THE PLAN.

         The Plan shall be administered by a committee (the "Committee")
consisting of two or more members of the Company's Board of Directors. The
selection of persons for participation in the Plan and all decisions concerning
the timing, pricing and amount of any grant or award under the Plan shall be
made solely by the Committee. The Board of Directors may from time to time
appoint a member or members of the Committee in substitution for or in addition
to the member or members then in office and may fill vacancies on the Committee
however caused. The Committee shall choose one of its members as Chairman and
shall hold meetings at such times and places as it shall deem advisable. A
majority of the

<PAGE>

members of the Committee shall constitute a quorum and any action may be taken
by a majority of those present and voting at any meeting. Any action may also be
taken without the necessity of a meeting by a written instrument signed by a
majority of the Committee. The decision of the Committee as to all questions of
interpretation and application of the Plan shall be final, binding and
conclusive on all persons. The Committee shall have the authority to adopt,
amend and rescind such rules and regulations as, in its opinion, may be
advisable in the administration of the Plan. The Committee may correct any
defect or supply any omission or reconcile any inconsistency in the Plan or in
any option agreement granted hereunder in the manner and to the extent it shall
deem expedient to carry the Plan into effect and shall be the sole and final
judge of such expediency. No Committee member shall be liable for any action or
determination made in good faith.

         4.       TYPE OF OPTIONS.

         Options granted pursuant to the Plan shall be authorized by action of
the Committee and may be designated as either incentive stock options meeting
the requirements of Section 422 of the Internal Revenue Code of 1986, as amended
(the "Code"), or non-qualified options which are not intended to meet the
requirements of such Section 422 of the Code, the designation to be in the sole
discretion of the Committee. The Plan shall be administered by the Committee in
such manner as to permit options to qualify as incentive stock options under the
Code.

         5.       ELIGIBILITY.

         Options designated as incentive stock options shall be granted only to
employees (including officers and directors who are also employees) of the
Company and any of its subsidiaries. Options designated as non-qualified options
may be granted to officers, directors, employees, consultants, and advisors of
the Company or of any of its subsidiaries. "Subsidiary" or "subsidiaries" shall
be as defined in Section 424 of the Code and the Treasury Regulations
promulgated thereunder (the "Regulations") and shall include present and future
subsidiaries.

         The Committee shall, from time to time, at its sole discretion, select
from such eligible individuals those to whom options shall be granted and shall
determine the number of shares to be subject to each option. In determining the
eligibility of an individual to be granted an option, as well as in determining
the number of shares to be granted to any individual, the Committee in its sole
discretion shall take into account the position and responsibilities of the
individual being considered, the nature and value to the Company or its
subsidiaries of his or her service and accomplishments, his or her present and
potential contribution to the success of the Company or its subsidiaries, and
such other factors as the Committee may deem relevant.

                                     - 2 -
<PAGE>

         No option designated as an incentive stock option shall be granted to
any employee of the Company or any subsidiary if such employee owns, immediately
prior to the grant of an option, stock representing more than 10% of the
combined voting power of all classes of stock of the Company or a parent or a
subsidiary, unless the purchase price for the stock under such option shall be
at least 110% of its fair market value at the time such option is granted and
the option, by its terms, shall not be exercisable more than five years from the
date it is granted. In determining the stock ownership under this paragraph, the
provisions of Section 424(d) of the Code shall be controlling. In determining
the fair market value under this paragraph, the provisions of Section 7 hereof
shall apply.

         The maximum number of shares of the Company's Common Stock with respect
to which an option or options may be granted to any employee in any one taxable
year of the Company shall not exceed 100,000 shares, taking into account shares
granted during such taxable year under options that are terminated or repriced.

         6.       OPTION AGREEMENT.

         (a) Each option shall be evidenced by an option agreement (the
"Agreement") duly executed on behalf of the Company and by the optionee to whom
such option is granted, which Agreement shall comply with and be subject to the
terms and conditions of the Plan. The Agreement may contain such other terms,
provisions and conditions which are not inconsistent with the Plan as may be
determined by the Committee, provided that options designated as incentive stock
options shall meet all of the conditions for incentive stock options as defined
in Section 422 of the Code. The date of grant of an option shall be as
determined by the Committee. More than one option may be granted to an
individual.

         (b) Unless the Agreement specifies otherwise, the Committee may cancel,
rescind, suspend, withhold or otherwise limit or restrict any option (whether
vested or unvested, exercised or unexercised) at any time if the optionee is not
in compliance with all applicable provisions of the Agreement and the Plan, or
if the optionee engages in any "Detrimental Activity." For purposes of this
Section 6, "Detrimental Activity" shall include: (i) the rendering of services
for any organization or engaging directly or indirectly in any business which is
or becomes competitive with the Company, or which organization or business, or
the rendering of services to such organization or business, is or becomes
otherwise prejudicial to or in conflict with the interests of the Company; (ii)
the disclosure to anyone outside the Company, or the use in other than the
Company's business, without prior written authorization from the Company, of any
confidential information or material, as defined in the Company's Employee
Confidentiality Agreement or such other agreement regarding confidential
information and intellectual property that the optionee and the Company may
enter into (collectively, the "Confidentiality

                                     - 3 -
<PAGE>

Agreement"), relating to the business of the Company, acquired by the optionee
either during or after employment with the Company; (iii) the failure or refusal
to disclose promptly and to assign to the Company, pursuant to the
Confidentiality Agreement or otherwise, all right, title and interest in any
invention or idea, patentable or not, made or conceived by the optionee during
employment by the Company, relating in any manner to the actual or anticipated
business, research or development work of the Company or the failure or refusal
to do anything reasonably necessary to enable the Company to secure a patent
where appropriate in the United States and in other countries; (iv) activity
that results in termination of the optionee's employment for cause; (v) a
material violation of any rules, policies, procedures or guidelines of the
Company; (vi) any attempt directly or indirectly to induce any employee of the
Company to be employed or perform services elsewhere or any attempt directly or
indirectly to solicit the trade or business of any current or prospective
customer, supplier or partner of the Company; or (vii) the optionee being
convicted of, or entering a guilty plea with respect to, a crime, whether or not
connected with the Company.

         (c) Upon exercise, payment, or delivery pursuant to an option, the
optionee shall certify in a manner acceptable to the Company that he or she is
in compliance with the terms and conditions of the Plan. In the event an
optionee engages in any Detrimental Activity as set forth in paragraphs
(b)(i)-(viii) of this Section 6 prior to, or during the six (6) months after,
any exercise, payment, or delivery pursuant to an option, such exercise,
payment, or delivery may be rescinded by the Company within two (2) years
thereafter. In the event of any such rescission, the optionee shall pay to the
Company the amount of any gain realized or payment received as a result of the
rescinded exercise, payment, or delivery, in such manner and on such terms and
conditions as may be required, and the Company shall also be entitled to set-off
against the amount of any such gain any amount owed to the optionee by the
Company, and to be reimbursed for any attorney's fees or other costs or expenses
incurred in enforcing this Section 6 of the Plan.

         7.       OPTION PRICE.

         The option price or prices of shares of the Company's Common Stock for
options designated as non-qualified stock options shall be determined by the
Committee, but in no event shall the option price of a non-qualified stock
option be less than 100% of the fair market value of such Common Stock at the
time the option is granted, as determined by the Committee. The option price or
prices of shares of the Company's Common Stock for incentive stock options shall
be not less than the fair market value of such Common Stock at the time the
option is granted as determined by the Committee in accordance with the
Regulations promulgated under Section 422 of the Code. If the shares of Common
Stock are listed on any

                                     - 4 -
<PAGE>

national securities exchange, or traded on the National
Association of Securities Dealers Automated Quotation System ("Nasdaq") National
Market System, the fair market value of a share of Common Stock on the date of
grant of an option shall be the closing price, if any, on the largest such
exchange, or if not traded on an exchange, the Nasdaq National Market System on
such day, or if the date of grant is not a business day, the business day
immediately preceding the date of the grant, or if there are no sales of shares
of Common Stock on the date of grant or on the business day immediately
preceding the date of grant, the fair market value of a share of Common Stock
shall be determined by taking a weighted average of the means between the
highest and lowest sales on the nearest date before and the nearest date after
the date of grant in accordance with Treasury Regulations Section 25.2512-2. If
the shares are not then either listed on any such exchange or quoted in
NASDAQ/NM, the fair market value shall be the mean between the average of the
"Bid" and the average of the "Ask" prices, if any, as reported in the National
Daily Quotation Service for the date of grant, or if the date of grant is not a
business day the business day immediately preceding the date of the grant of the
option, or, if none, shall be determined by taking a weighted average of the
means between the highest and lowest sales prices on the nearest date before and
the nearest date after the date of grant in accordance with Treasury Regulations
Section 25.2512-2. If the fair market value cannot be determined under the
preceding two sentences, it shall be determined in good faith by the Committee.

         8.       MANNER OF PAYMENT; MANNER OF EXERCISE.

         (a) Options granted under the Plan may provide for the payment of the
exercise price, as determined by the Committee and set forth in the Option
Agreement, by delivery of (i) cash or a check payable to the order of the
Company in an amount equal to the exercise price of such options, (ii) shares of
Common Stock of the Company owned by the optionee having a fair market value
equal in amount to the exercise price of the options being exercised, (iii) any
combination of (i) and (ii), provided, however, that payment of the exercise
price by delivery of shares of Common Stock of the Company owned by such
optionee may be made only if such payment does not result in a charge to
earnings for financial accounting purposes as determined by the Committee, or
(iv) payment may also be made by delivery of a properly executed exercise notice
to the Company, together with a copy of irrevocable instruments to a broker to
deliver promptly to the Company the amount of sale or loan proceeds to pay the
exercise price. The fair market value of any shares of the Company's Common
Stock which may be delivered upon exercise of an option shall be determined by
the Committee in accordance with Section 7 hereof. To facilitate clause (iv)
above, the Company may enter into agreements for coordinated procedures with one
or more brokerage firms. The date of exercise shall be the date of delivery of
such exercise notice.

                                     - 5 -
<PAGE>

         (b) To the extent that the right to purchase shares under an option has
accrued and is in effect, options may be exercised in full at one time or in
part from time to time, by giving written notice, signed by the person or
persons exercising the option, to the Company, stating the number of shares with
respect to which the option is being exercised, accompanied by payment in full
for such shares as provided in subparagraph (a) above. Upon such exercise,
delivery of a certificate for paid-up non-assessable shares shall be made at the
principal office of the Company to the person or persons exercising the option
at such time, during ordinary business hours, after 9:00 a.m. but not more than
thirty (30) days from the date of receipt of the notice by the Company, as shall
be designated in such notice, or at such time, place and manner as may be agreed
upon by the Company and the person or persons exercising the option. Upon
exercise of the option and payment as provided above, the optionee shall become
a stockholder of the Company as to the Shares acquired upon such exercise.

         9.       VESTING OF OPTIONS.

                  Except as otherwise provided in an optionee's Agreement, each
option granted under the Plan shall, subject to Section 10 and Section 12
hereof, be exercisable with reference to the option's Vesting Reference Date
(the date selected by the Committee) as follows: prior to the First Anniversary
Date of the Vesting Reference Date - zero percent (0%); on the First Anniversary
Date of the Vesting Reference Date - twenty five percent (25%); on the Second
Anniversary Date of the Vesting Reference Date - fifty percent (50%); on the
Third Anniversary Date of the Vesting Reference Date - seventy-five percent
(75%); and on the Fourth Anniversary Date of the Vesting Reference Date - one
hundred percent (100%). Notwithstanding any other provisions of this section, in
the event of a Change of Control (as hereinafter defined) of the Company, fifty
percent (50%) of the unvested shares of each Participant with a minimum of six
months' service will automatically be fully Vested; in the event of a Change of
Control of the Company not approved by the Board of Directors prior to such
Change of Control, all of the Shares shall be fully Vested immediately upon such
Change of Control. For purposes of the Plan, a "Change of Control" shall be
deemed to have occurred if any of the following conditions have occurred: (1)
the merger or consolidation of the Company with another entity where the Company
is not the surviving entity and where after the merger or consolidation (i) its
stockholders prior to the merger or consolidation hold less than 50% of the
voting stock of the surviving entity and (ii) its Directors prior to the merger
or consolidation are less than a majority of the Board of the surviving entity;
(2) the sale of all or substantially all of the Company's assets to a third
party and subsequent to the transaction (i) its stockholders hold less than 50%
of the stock of said third party and (ii) its Directors are less than a majority
of the Board of said third party; (3) a transaction or series of related
transactions, including a

                                     - 6 -
<PAGE>

merger of the Company with another entity where the Company is the surviving
entity, whereby 50% or more of the voting stock of the Company is transferred to
parties who are not prior thereto stockholders or affiliates of the Company; or
(4) the Continuing Directors shall not constitute a majority of the Board of
Directors of the Company. The term "Continuing Directors" shall mean a member of
the Board of Directors of the Company who either was a member of the Board of
Directors of the Company on the date this Plan was adopted by the Board of
Directors or who subsequently became a director of the Company and whose initial
appointment, initial election or initial nomination for election by the
Company's shareholders subsequent to such date was approved by a vote of a
majority of the Continuing Directors then on the Board of Directors of the
Company.

                  To the extent that an option to purchase shares is not
exercised by an optionee when it becomes initially exercisable, it shall not
expire but shall be carried forward and shall be exercisable, on a cumulative
basis, until the expiration of the exercise period. No partial exercise may be
made for less than fifty (50) full shares of Common Stock.

                  Notwithstanding the foregoing, the Committee may in its
discretion (i) specifically provide for another time or times of exercise (but
not delay a vesting period) or (ii) accelerate the exerciseability of any option
subject to such terms and conditions as the Committee deems necessary and
appropriate.

         10.      TERM AND EXERCISABILITY OF OPTIONS; RELATIONSHIP TO VESTING;
NON-EMPLOYEE OPTIONS.

                  (a)      TERM AND EXERCISABILITY.

                           (1) The term of each option shall be as stated in the
                  optionee's Agreement, provided , however, that the term of an
                  option shall not exceed ten (10) years from the date of the
                  granting thereof, subject to earlier termination as provided
                  in the Plan and the Agreement.

                           (2) Except as otherwise provided in the optionee's
                  Agreement, or this Section 10, an option granted to any
                  employee who ceases to be an employee of the Company or one of
                  its subsidiaries shall terminate ninety (90) days after the
                  date of such optionee ceases to be an employee of the Company
                  or one of its subsidiaries, or on the last day of the term of
                  the option, whichever occurs first.

                           (3) Except as otherwise provided in the optionee's
                  Agreement, if such termination of employment is because of
                  dismissal for cause or because the employee is in breach of
                  any employment agreement, such option will terminate on the
                  date the optionee ceases to be an employee of the Company or
                  one of its subsidiaries, or on the last day of the term of the
                  option, whichever occurs first.

                                     - 7 -
<PAGE>

                           (4) Except as otherwise provided in the optionee's
                  Agreement, if such termination of the employment is because
                  the optionee has become permanently disabled (within the
                  meaning of Section 22(e)(3) of the Code), such option shall
                  terminate on the last day of the twelfth month from the date
                  such optionee ceases to be an employee, or on the last day of
                  the term of the option, whichever occurs first.

                           (5) Except as otherwise provided in the optionee's
                  Agreement, in the event of the death of an optionee, any
                  option granted to such optionee shall terminate on the last
                  day of the twelfth month from the date of death, or on the
                  last day of the term of the option, whichever occurs first.

                           (6) Except as otherwise provided in the optionee's
                  Agreement, if such termination of employment is because of the
                  retirement of the optionee on or after attaining the minimum
                  age, completing the minimum number of years of service, and
                  satisfying of all other conditions specified for retirement
                  status under the Company's Retirement Policy Statement as in
                  effect at the time of the grant of the option, such option
                  will terminate on the date that is five (5) years after the
                  date the optionee ceases to be an employee of the Company or
                  one of its subsidiaries, or the last day of the term of the
                  option, whichever occurs first.

                           (7) Notwithstanding subparagraphs (2) through (6)
                  above, the Committee shall have the authority to extend the
                  expiration date of any outstanding option in circumstances in
                  which it deems such action to be appropriate.

         (b) RELATIONSHIP TO VESTING. Except as otherwise provided in the
optionee's agreement, an option granted to an employee who ceases to be an
employee of the Company or one of its subsidiaries, whether by having become
permanently disabled, as defined in Sedition 22(e)(3) of the Code, by death, or
otherwise, shall be exercisable only to the extent that the right to purchase
shares under such option has vested and accrued on the date that such optionee
ceases to be an employee of the Company or one of its subsidiaries.

         (c) NON-EMPLOYEE OPTIONS. The term of an option granted to a
non-employee director, a consultant, or any other person who is not an employee
of the Company or one of its subsidiaries shall be stated in the optionee's
Agreement, provided, however, that the term of an option shall not exceed ten
(10) years from the date of the granting thereof, subject to earlier termination
as provided in the Plan and the Agreement. An option granted to a non-employee
director, a consultant, or any other person who is not an employee of the
Company or one of its subsidiaries shall be exercisable only to the extent so
provided in the optionee's Agreement.

         11.      OPTIONS NOT TRANSFERABLE.

         The right of any optionee to exercise any option granted to him or her
shall not be assignable or transferable by such optionee otherwise than by will
or the laws of descent and distribution, and any such option shall be
exercisable during the lifetime of such optionee only by him; provided, however,
that in

                                     - 8 -
<PAGE>

the case of a non-qualified stock option, the Committee may permit
transferability of such options on such terms and conditions as determined by
the Committee and set forth in the Option Agreement. Any option granted under
the Plan shall be null and void and without effect upon the bankruptcy of the
optionee to whom the option is granted, or upon any attempted assignment or
transfer, except as herein provided, including without limitation any purported
assignment, whether voluntary or by operation of law, pledge, hypothecation or
other disposition, attachment, divorce, trustee process or similar process,
whether legal or equitable, upon such option.

         12.      RECAPITALIZATIONS, REORGANIZATIONS AND THE LIKE.

         (a) In the event that the outstanding shares of the Common Stock of the
Company are changed into or exchanged for a different number or kind of shares
or other securities of the Company or of another corporation by reason of any
reorganization, merger, consolidation, recapitalization, reclassification, stock
split-up, combination of shares, or dividends payable in capital stock,
appropriate adjustment shall be made in the number and kind of shares as to
which options may be granted under the Plan and as to which outstanding options
or portions thereof then unexercised shall be exercisable, to the end that the
proportionate interest of the optionee shall be maintained as before the
occurrence of such event; such adjustment in outstanding options shall be made
without change in the total price applicable to the unexercised portion of such
options and with a corresponding adjustment in the option price per share.

         (b) In addition, unless otherwise determined by the Committee in its
sole discretion, in the case of any Change of Control of the Company, the
purchaser(s) of the Company's assets or stock may, in his, her or its
discretion, deliver to the optionee the same kind of consideration that is
delivered to the stockholders of the Company as a result of such sale,
conveyance or Change of Control, or the Committee may cancel all outstanding
options in exchange for consideration in cash or in kind, which consideration in
both cases shall be equal in value to the value of those shares of stock or
other securities the optionee would have received had the option been exercised
(to the extent then exercisable) and no disposition of the shares acquired upon
such exercise been made prior to such Change of Control, less the option price
therefor. Upon receipt of consideration by the optionee, his or her option shall
immediately terminate and be of no further force and effect. The value of the
stock or other securities the optionee would have received if the option had
been exercised shall be determined in good faith by the Committee, and in the
case of shares of the Common Stock of the Company, in accordance with the
provisions of Section 7 hereof. The Committee shall also have the power and
right to accelerate the exercisability of any options, notwithstanding any
limitations in this Plan or in the Agreement upon such Change of Control. Upon

                                     - 9 -
<PAGE>

such acceleration, any options or portion thereof originally designated as
incentive stock options that no longer qualify as incentive stock options under
Section 422 of the Code as a result of such acceleration shall be redesignated
as non-qualified stock options.

         (c) Upon dissolution or liquidation of the Company, all options granted
under this Plan shall terminate, but each optionee (if at such time in the
employ of or otherwise associated with the Company or any of its subsidiaries)
shall have the right, immediately prior to such dissolution or liquidation, to
exercise his or her option to the extent then exercisable.

         (d) No fraction of a share shall be purchasable or deliverable upon the
exercise of any option, but in the event any adjustment hereunder of the number
of shares covered by the option shall cause such number to include a fraction of
a share, such fraction shall be adjusted to the nearest smaller whole number of
shares.

         13.      NO SPECIAL EMPLOYMENT RIGHTS.

         Nothing contained in the Plan or in any option granted under the Plan
shall confer upon any option holder any right with respect to the continuation
of his or her employment by the Company (or any subsidiary thereof) or interfere
in any way with the right of the Company (or any subsidiary thereof), subject to
the terms of any separate employment agreement to the contrary, at any time to
terminate such employment or to increase or decrease the compensation of the
option holder from the rate in existence at the time of the grant of an option.
Whether an authorized leave of absence, or absence in military or government
service, shall constitute termination of employment shall be determined by the
Committee at the time.

         14.      WITHHOLDING.

         The Company's obligation to deliver shares upon the exercise of any
option granted under the Plan and any payments or transfers under Section 12
hereof shall be subject to the option holder's satisfaction of all applicable
Federal, state and local income, excise, employment and any other tax
withholding requirements.

         15.      RESTRICTIONS ON ISSUE OF SHARES.

         (a) Notwithstanding the provisions of Section 8, the Company may delay
the issuance of shares covered by the exercise of an option and the delivery of
a certificate for such shares until one of the following conditions shall be
satisfied:

                       (1) The shares with respect to which such option has
been exercised are at the time of the issue of such shares effectively
registered or qualified under applicable Federal and state securities acts now
in force or as hereafter amended; or

                                     - 10 -
<PAGE>

                       (2) Counsel for the Company shall have given an opinion,
which opinion shall not be unreasonably conditioned or withheld, that such
shares are exempt from registration and qualification under applicable Federal
and state securities acts now in force or as hereafter amended.

         (b) It is intended that all exercises of options shall be effective,
and the Company shall use its best efforts to bring about compliance with the
above conditions within a reasonable time, except that the Company shall be
under no obligation to qualify shares or to cause a registration statement or a
post-effective amendment to any registration statement to be prepared for the
purpose of covering the issue of shares in respect of which any option may be
exercised, except as otherwise agreed to by the Company in writing.

         16.      PURCHASE FOR INVESTMENT; RIGHTS OF HOLDER ON SUBSEQUENT
REGISTRATION.

         Unless the shares to be issued upon exercise of an option granted under
the Plan have been effectively registered under the Securities Act of 1933, as
now in force or hereafter amended, the Company shall be under no obligation to
issue any shares covered by any option unless the person who exercises such
option, in whole or in part, shall give a written representation and undertaking
to the Company which is satisfactory in form and scope to counsel for the
Company and upon which, in the opinion of such counsel, the Company may
reasonably rely, that he or she is acquiring the shares issued pursuant to such
exercise of the option for his or her own account as an investment and not with
a view to, or for sale in connection with, the distribution of any such shares,
and that he or she will make no transfer of the same except in compliance with
any rules and regulations in force at the time of such transfer under the
Securities Act of 1933, or any other applicable law, and that if shares are
issued without such registration, a legend to this effect may be endorsed upon
the securities so issued. In the event that the Company shall, nevertheless,
deem it necessary or desirable to register under the Securities Act of 1933 or
other applicable statutes any shares with respect to which an option shall have
been exercised, or to qualify any such shares for exemption from the Securities
Act of 1933 or other applicable statutes, then the Company may take such action
and may require from each optionee such information in writing for use in any
registration statement, supplementary registration statement, prospectus,
preliminary prospectus or offering circular as is reasonably necessary for such
purpose and may require reasonable indemnity to the Company and its officers and
directors and controlling persons from such holder against all losses, claims,
damages and liabilities arising from such use of the information so furnished
and caused by any untrue statement of any material fact therein or caused by the
omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
under which they were made.

                                     - 11 -
<PAGE>

         17.      MODIFICATION OF OUTSTANDING OPTIONS.

         The Committee may authorize the amendment of any outstanding option
with the consent of the optionee when and subject to such conditions as are
deemed to be in the best interests of the Company and in accordance with the
purposes of this Plan.

         18.      APPROVAL OF STOCKHOLDERS.

         The Plan shall be subject to approval by the vote of stockholders
holding at least a majority of the voting stock of the Company present, or
represented, and entitled to vote at a duly held stockholders' meeting, or by
written consent of the stockholders as provided for under applicable state law,
within twelve (12) months after the adoption of the Plan by the Board of
Directors and shall take effect as of the date of adoption by the Board of
Directors upon such approval. The Committee may grant options under the Plan
prior to such approval, but any such option shall become effective as of the
date of grant only upon such approval and, accordingly, no such option may be
exercisable prior to such approval.

         19.      TERMINATION AND AMENDMENT.

         Unless sooner terminated as herein provided, the Plan shall terminate
ten (10) years from the date upon which the Plan was duly adopted by the Board
of Directors of the Company. The Board of Directors may at any time terminate
the Plan or make such modification or amendment thereof as it deems advisable;
provided, however, that except as provided in this Section 19, the Board of
Directors may not, without the approval of the stockholders of the Company
obtained in the manner stated in Section 19, increase the maximum number of
shares for which options may be granted or change the designation of the class
of persons eligible to receive options under the Plan, or make any other change
in the Plan which requires stockholder approval under applicable law or
regulations.

         20.      RESERVATION OF STOCK.

         The Company shall at all times during the term of the Plan reserve and
keep available such number of shares of stock as will be sufficient to satisfy
the requirements of the Plan and shall pay all fees and expenses necessarily
incurred by the Company in connection therewith.

         21.      LIMITATION OF RIGHTS IN THE OPTION SHARES.

         An optionee shall not be deemed for any purpose to be a stockholder of
the Company with respect to any of the options except to the extent that the
option shall have been exercised with respect thereto and, in addition, a
certificate shall have been issued theretofore and delivered to the optionee.

         22.      NOTICES.

      Any communication or notice required or permitted to be given under the
Plan shall be in writing, and mailed by registered or certified mail or
delivered by hand, if to the Company, to its principal place of

                                     - 12 -
<PAGE>

business, attention: President, and, if to an optionee, to the address as
appearing on the records of the Company.

                                     - 13 -

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