Document:

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                                                              EXHIBIT 4.(a)(xxi)

                          DATED as of October 10, 2001

                                MADGE NETWORKS NV

                                       and

                                  Robert Madge

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

                              CONSULTANCY AGREEMENT

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

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Summary of Consulting Terms

Consulting Period:         For approximately 24 months beginning October 10 2001
                           and ending on October 9 2003.

Consulting Fee:            US$10,000 per month.

Consulting Subjects:       Knowledge and advice related to past activities of
                           the Company, its subsidiaries and associates;
                           Strategic development of the Company its
                           subsidiaries, associates and investments;
                           Representative activities on behalf of the Company.

Contact:                   All contact with the Company shall be through the
                           Chief Executive Officer or the Chief Financial
                           Officer, or their designees.

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THIS AGREEMENT is made as of the 10th day of October, 2001.

BETWEEN:

1.     Madge Networks NV whose registered office is situated at Transpolis
       Schiphol Airport Polaris Avenue 23 2132 JH Hoofddorp The Netherlands
       ("the Company") and

2.     Robert Madge, care of Mido Trust & Management, Kaya Douwe Zalm 1-L,
       Penstraat # 105, Curacao, The Netherlands Antilles ("You")

WHEREAS

(A)    The Company and its Affiliates carries on the business of supplying
       advanced networking solutions products and services ("the Business").

(B)    You have knowledge and expertise in the Business.

(C)    You have knowledge and expertise related to the historical activities of
       the Company and its Affiliates.

(D)    In reliance upon that knowledge and expertise the Company wishes to
       engage you to provide services in relation to the past activities of the
       Company and its Affiliates, their marketing strategy, and their strategic
       development and such other subjects as may, from time to time, be agreed
       ("the Services") and you have agreed to accept this engagement on the
       following terms.

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IT IS HEREBY AGREED as follows:-

1.     DEFINITIONS

1.1    For the purposes of this Agreement the following words or phrases shall
       unless the context otherwise requires have the meanings respectively
       assigned to them:

       AFFILIATES               Affiliates means the directly and indirectly
                                held subsidiaries and associated companies of
                                Madge Networks N.V., which for the avoidance of
                                doubt includes the Red-M group of companies.

       "APPOINTMENT DATE"       Means the date of this agreement.

       "CONFIDENTIAL            Means any and all information of a secret or
       INFORMATION"             confidential nature which relates to the
                                Business and which has not for the time being
                                manifestly and demonstrably come into the
                                public domain including (without limitation):-

                                (a)     know how technical information expertise
                                        designs strategy data formulae processes
                                        and specifications;

                                (b)     drawings writings and other papers
                                        computer programs and other tangible and
                                        non-tangible manifestations of any items
                                        referred to in paragraph (a) of this
                                        definition;

                                (c)     all rights to and copyright patents
                                        registered design trade marks and other
                                        protection for or relating to the
                                        foregoing;

                                (d)     customer, supplier and price lists
                                        marketing plans terms of contracts
                                        agreements or arrangements;

                                (e)     organisational management and personnel
                                        information;

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                                (f)     financial information, whether actual or
                                        projected.

       "CONSULTING FEE"         US$10,000 per month.

       "SETTLEMENT AGREEMENT"   Means the agreement effective October 10, 2001
                                that you entered into with Madge Technology NV
                                relating to you leaving the employment of the
                                Madge group.

       "TERM OF AGREEMENT"      Means the period defined in clause 2 below.

       "TERMINATION DATE"       Means October 9 2003.

1.2    The headings used in this Agreement are included for convenience only and
       are not to be used in construing or interpreting this Agreement.

1.3    Any reference to a person shall include natural persons and partnerships
       firms and other such unincorporated bodies, companies, corporate bodies
       and all other legal persons of whatever kind and howsoever constituted.

1.4    This Agreement shall be governed in all respects by English law and shall
       be subject to the non-exclusive jurisdiction of the English courts.

2.     TERM OF AGREEMENT

This Agreement shall have effect from the Appointment Date and shall continue
until the Termination Date unless terminated sooner in accordance with Clause 10
below (the "Term of Agreement").

3.     YOUR OBLIGATIONS

3.1    Throughout the Term of Agreement you shall make yourself available to
       provide consultancy services to the Company and its Affiliates at such
       times as the Company and/or its Affiliates and you shall agree from time
       to time for a minimum of 16

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       hours per calendar month. These consultancy services may take place in
       various countries, and in various locations, as the Company and/or its
       Affiliates and you shall agree from time to time (and may include
       services you provide remotely, with communications taking place by
       telephone or electronic means). In addition you shall provide such ad-hoc
       assistance on the telephone or by email as may be required.
       Notwithstanding anything to the contrary contained herein, your contacts
       with the Company during the Term of Agreement shall be limited to the
       Chief Executive Officer and the Chief Financial Officer of Madge Networks
       N.V. unless otherwise directed by such individuals.

3.2    Throughout the Term of Agreement you shall offer positive support towards
       the Business of Company and its Affiliates, including but not limited to
       providing positive support in the transition of your CEO duties to Martin
       Malina. As part of this support you shall provide, upon request, any
       names, addresses, telephone numbers, e-mail addresses and other contact
       information for those individuals and organisations with which you had
       contact in the performance of your duties with the Company. You shall
       also provide support to the Company's business efforts externally when
       reasonably requested by the Company.

3.3    Throughout the Term of Agreement you shall not be concerned with, solicit
       or canvass any business which is competitive or which plans to be
       competitive with any business carried on by the Company or its Affiliates
       or any business for which the Company or its Affiliates has definite
       business plans and where you have prior knowledge of such plans. In the
       event you wish to be relieved of this provision, you may request in
       writing that the Company waive this provision with respect to a specific
       business activity. The Company, in its sole discretion, may choose to
       waive this provision in writing within thirty days of receipt of any such
       request, but shall not be obligated to do so.

3.4    Throughout the Term of Agreement you shall not, in competition with the
       Company, deal with or canvass or solicit any business from any person who
       has been at any time during six months of such date a customer of the
       Company.

3.5    Throughout the Term of Agreement induce or attempt to induce from the
       Company or its Affiliates any manager level employee, any director level
       employee, any Vice President, or any salesperson or development engineer
       of the Company or its

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       Affiliates who is engaged in any business or activity to leave the
       employment of the Company or its Affiliates (whether or not this would be
       a breach of contract by the employee).

3.6    You acknowledge that the provisions of 3.3, 3.4 and 3.5 are no more
       extensive than are reasonable to protect the Company and its Affiliates.
       Each of the restrictions in each paragraph or sub-clause above shall be
       enforceable independently of each of the others and its validity shall
       not be affected if any of the others is invalid. If any of those
       restrictions is void but would be valid if some part of the restriction
       were deleted the restriction in question shall apply with such
       modification as may be necessary to make it valid.

3.7    You agree to continue to comply with any continuing obligations under the
       terms of your employment with the Company which survive your termination,
       which without limitation, include the following provisions if included in
       your employment agreement: PROTECTIVE COVENANTS, CONFIDENTIAL INFORMATION
       and NON COMPETITION and the terms of your Settlement Agreement.

3.8    For the avoidance of doubt, this Agreement is separate to any obligations
       you may have due to your roles as Supervisory Director or Designated
       Supervisory Director of the Company, or in your planned role as
       Non-Executive Director of Red-M (Communications) Ltd (and for which there
       are, or will be, separate remuneration arrangements).

4.     THE COMPANY'S OBLIGATIONS

4.1    The Company will allow you to continue to use, free of charge, the Dell
       laptop computer that you have and associated software, and to use the
       Company's email server based at Wexham Springs, UK to send and receive
       your e-mail during the Term of the Agreement. The Company will maintain
       your existing email account to allow you such access, and will provide
       you with the IS support necessary to support this e-mail usage and usage
       of the Company's network. (For the avoidance of doubt, you may use these
       facilities for non-Company activities.) The Company reserves the right to
       take away these rights at any time if you do not follow any e-mail or
       other IS policy regarding such things as virus control and use of e-mail
       that the Company has

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       in force from time to time, or if to continue to provide this service to
       you becomes uneconomical for the Company.

4.2    The Company will allow you to use, free of charge, such office space at
       Wexham Springs, UK as you reasonably require and secretarial support to
       enable you to provide the Services and for incidental secretarial
       services which you may require. You may also use the Company's address as
       a forwarding address for personal mail addressed to you. The Company has
       the right to withdraw this support for incidental secretarial services
       should this become uneconomical for the Company.

4.3    The Company will not take any action against you for any acts or
       omissions by you resulting from your activities under this Agreement. The
       Company will give you all reasonable assistance regarding any claims
       brought by third parties against you for any acts or omissions by you
       resulting from your activities under this Agreement.

5.     CONSULTANCY FEES

5.1    In consideration of the provision of the Services the Company shall pay
       or shall procure that one of its Affiliates pay you the Consulting Fee
       exclusive of value added tax, payable monthly in equal instalments to be
       paid on or around the 28th day of each calendar month starting on October
       28th, 2001 (backdated if applicable).

5.2    You shall be reimbursed for such reasonable and necessary expenses,
       provided major expenses (i.e. anything over US$500 per month) are agreed
       in advance.

5.3    All payments to you shall be made against invoices which you supply.

6.     CONFIDENTIALITY

You hereby covenant that you will not during the Term of Agreement or at any
time thereafter (save insofar as you may be required to do so in order to fulfil
your duties to the Company or its Affiliates) directly or indirectly use or
disclose or communicate to any person any Confidential Information, except upon
the written request of the Chief Executive Officer or the Chief Financial
Officer of Madge Networks N.V. and with a valid Non-Disclosure Agreement in
place except as required by law or by any regulatory body. In the event that
such disclosure is required by law or regulatory body you shall provide the

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Company with written notice of the proposed disclosure at least two working days
before it makes such disclosure. For the avoidance of doubt Confidential
Information shall not include any information in the public domain save as a
result of a breach by you.

7.     TAX LIABILITY

7.1    It is hereby declared that it is the intention of the parties that you
       shall have the status of a self employed person and you shall be
       responsible for all income tax liabilities and social/payroll tax or
       similar contributions in respect of your fees. Subject to clause 7.4 you
       hereby indemnify the Company in respect of any claims or demands which
       may be made by any relevant authorities against the Company in respect of
       income tax costs, penalties, interest and gross up which may be found due
       from the Company in respect of the provision of the Services by you.

7.2    Subject to clause 7.4 you covenant to pay to the Company an amount equal
       to the amount of any social taxes or similar contributions relating to
       the provision of the Services by you for which any claim may be made by
       the relevant authorities against the Company.

7.3    Subject to clause 7.4 in the event that a relevant authority determines
       that any amount of value added sales tax is or has been incorrectly
       charged by you under or in connection with this Agreement you will
       immediately on receipt of a written request from the Company repay to the
       Company such amounts of sales tax and provide the Company with a valid
       and appropriate sales tax credit note.

7.4    In the event of a claim or demand from a relevant tax authority relating
       to a payment made by the Company to you under this Agreement the Company
       agrees to notify you of such claim or demand and to give you a reasonable
       amount of time to respond to the relevant authority about the claim. The
       Company will also involve you in all stages of any defence of such a
       claim or demand. You have the right to challenge the indemnity you have
       given under clause 7.1, 7.2 and/or 7.3 in the event that the Company
       makes a payment to settle a claim or demand from a tax authority pursuant
       to this clause 7, without your prior approval.

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8.     LEGAL RELATIONSHIP

       Your relationship with the Company is that of an independent contractor
       and not as an employee or agent of the Company. You understand that you
       are not authorized to bind the Company or its Affiliates or make any
       representations on its behalf in any matter, except as set forth in this
       Agreement and in your capacity as Supervisory Board director of the
       Company or as director of Red-M (Communications) Limited.

9.     INTELLECTUAL PROPERTY RIGHTS

9.1    Any discovery or invention or secret process or improvement in procedure
       or any trade mark or design or copyright made discovered or produced by
       you in the course of providing Services hereunder shall immediately be
       disclosed to the Company and shall be the property of the Company.

9.2    You shall if and whenever required so to do (whether during or after the
       termination of this agreement) at the expense of the Company, apply or
       join in applying for letters patent or trade mark or other equivalent
       protection in the United Kingdom or any other part of the world, for any
       such discovery invention process improvement trade mark design or
       copyright and execute and do all instruments and things necessary for
       vesting the said letters patent or trade mark or other equivalent
       protection when obtained and all right title and interest to the same in
       the Company absolutely, as sole beneficial owner or in such other person
       as may be required by the Company.

9.3    You irrevocably appoint the Company to be your attorney in your name and
       on your behalf to sign execute do and deliver any such instrument or
       thing and generally to use your name for the purpose of giving to the
       Company the full benefit of the provisions of this clause and in favour
       of any third party. A certificate in writing signed by any director or
       the secretary of the Company that any instrument or act falls within the
       authority hereby conferred shall be conclusive evidence that such is the
       case.

9.4    The provisions of this clause 9 shall be without prejudice to the
       provisions of the UK Copyright Designs and Patents Act 1988 or similar
       legislation that exists in other countries.

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9.5    At the end of the Term you shall return all notes, emails and materials
       that you produce, receive or send during the Term of the Agreement
       pursuant to providing the Services to the Company.

10.    TERMINATION

10.1   The Company may immediately terminate this Agreement in the event of
       material misconduct on your part.

10.2   The Company may also terminate this Agreement in the event of a material
       breach of this agreement by you. A breach of the agreement shall also
       include any failure to perform any of your obligations set forth in
       clause 3 above. Any termination by the Company shall be subject to
       written notice by the Company, giving you 30 days to correct the breach
       raised by the Company.

10.3   For the avoidance of doubt, the Company may only terminate this Agreement
       in accordance with clause 10.1 and 10.2, and otherwise the Agreement is
       irrevocable on the part of the Company, including but not limited to the
       Company's obligation to pay the Consulting Fee.

10.4   You may terminate the Consultancy Agreement at any time in giving one
       month's written notice, in which case the Company will have no further
       obligation to pay you the Consulting Fee following termination.

11.    ASSIGNMENT

Neither party may assign or otherwise transfer any rights or obligations under
this Agreement without the prior consent of the other.

12.    RETURN OF DOCUMENTS

You shall promptly whenever requested by the Company and in any event upon the
termination of this Agreement deliver to the Company all correspondence and
other documents papers and records which have been prepared by you or come into
your

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possession in the course of your duties and which is the property of the Company
or its Affiliates and you shall not be entitled to and shall not retain any
copies.

13.    MISCELLANEOUS

The proposals contained in this Agreement are made without any admission of
liability.

Signed
For and on behalf of the Company

/s/ Martin Malina
---------------------------

Date:  27 December 2001

Signed by
Robert Madge

/s/ Robert Madge
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Date:  27 December 2001

                                       11<PAGE>
                                                             EXHIBIT 4.(a)(xxii)

                              SETTLEMENT AGREEMENT

This Settlement Agreement is entered into on this 1st day of November 2001
between:

1.    Madge Networks N.V. a Dutch company with offices at Wexham Springs,
      Framewood Road, Wexham, Slough SL3 6PJ for and on behalf of all its wholly
      owned subsidiary companies ("Madge"); and

2.    Celestica Ireland Limited, an Irish company, with offices at Balheary
      Industrial Estate, Swords, Co. Dublin, Ireland ("Celestica").

RECITALS

A.    By an agreement dated 23rd February 1998 (as amended per the other
      agreements listed below), Madge agreed to procure certain electronic
      manufacturing services from Celestica Ireland BV ("Celestica BV").

B.    The agreement referred to in A above has been subsequently amended by the
      following agreements:-

1.    Letter Agreement dated 16th March 1998 made between Madge Networks NV and
      Celestica BV.

2.    Assignment Agreement dated 17th June 1998 made between Madge Networks NV,
      Celestica BV and Celestica. This agreement was assigned from Celestica BV
      to Celestica.

3.    Addendum to Madge/Celestica Contracts dated 21st December 1999 made
      between Madge Networks NV and Celestica.

4.    Amendment to the Assignment agreement dated 20th October, 2000 made
      between Madge Networks NV, Celestica BV and Celestica.

5.    Interim Addendum No. 2 to the Manufacturing and Supply Agreement dated
      23rd February 2001 made between Madge Networks NV and Celestica.

Together all these agreements are called the "Manufacturing Agreement".

C.    This agreement sets out the basis upon which the parties have agreed to
      terminate the Manufacturing Agreement and the actions that the respective
      parties shall undertake to facilitate that termination.

D.    The parties have agreed an exit plan setting out the type and volume of
      products which will be made by Celestica for Madge. This is attached at
      Schedule A to this Agreement (the "Exit Plan").

E.    The parties have agreed to a number of minimum payments that Madge will
      make to Celestica, subject to the exceptions set out in this Agreement.
      These payments are set out in Schedule B as attached to this Agreement
      (the "Payment Plan"). The Payment Plan refers to the purchase by Madge
      from Celestica of certain products to be produced by Celestica under the
      Exit Plan and of Components (as defined below) and of payment of existing
      debt owed from Madge to Celestica.

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F.    Based upon the information available to the parties at the Effective Date
      the parties believe that the Payment Plan will mean that by March 31, 2002
      Madge will have purchased all Components (as defined below) from
      Celestica.

IN consideration of the mutual obligations contained herein, the parties agree
as follows:-

1.    DEFINITIONS AND INTERPRETATIONS

1.1   In this agreement the words and expressions set out below shall have the
      meaning set out opposite unless the context otherwise requires:

      "AGREEMENT" means this agreement and any schedules or appendices to this
      agreement;

      "EFFECTIVE DATE" means 1st November, 2001;

1.2   References in this Agreement to the singular shall include the plural and
      vice versa.

1.3   Headings in this Agreement are for convenience only and shall not affect
      its interpretation.

2.    TERMINATION OF MANUFACTURING AGREEMENTS

2.1   Once the obligations set out in this Agreement have been completed, the
      parties agree that (save for the items listed in 2.3 below) all provisions
      of the Manufacturing Agreement and all rights or causes of action of any
      kind howsoever arising between the parties (or their affiliates or
      associated companies) from the Manufacturing Agreement shall be cancelled
      and be of no further effect whatsoever. For the avoidance of doubt, the
      termination of all rights, obligations and claims set out above shall
      include the provisions of the Interim Addendum (No.2) to the Manufacturing
      Agreement dated 23rd February 2001 and made between Madge, Celestica and
      Celestica BV.

2.2   Madge acknowledges that the sum of US$700,000 (seven hundred thousand
      dollars) has been deducted from the sums due from Madge to Celestica as
      part of the Payment Plan. Madge acknowledges that Celestica agreed to do
      this to compensate Madge for the extra recovery rate that Madge considers
      it has paid on products delivered by Celestica since February 22, 2001 and
      additional expenses incurred by Madge in moving from Celestica.
      Accordingly Madge hereby agrees, that in consideration of this, that it
      will not bring any claim in respect of any alleged overpayment of the
      recovery rate by Madge.

2.3   The following matters shall survive the termination of the Manufacturing
      Agreement:-

      2.3.1 Celestica will continue to honour its warranty obligations under the
            Manufacturing Agreement, to repair or replace manufactured products
            that prove defective and to reimburse Madge for its costs of having
            any warranty repairs carried out on the products supplied (already
            or in the future) by Celestica;

      2.3.2 The confidentiality provisions will survive;

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      2.3.3 Any Components supplied by Celestica (as defined below) that are
            defective will be Celestica's responsibility and Celestica will
            liase with the relevant component supplier regarding any warranty
            Celestica has with them. For the avoidance of doubt this does not
            apply to any Components damaged once Madge has taken delivery of
            them; and

      2.3.4 Provisions in the Manufacturing Agreement regarding the quality of
            products to be supplied.

3     CELESTICA OBLIGATIONS

3.1   Celestica agrees that it will hold and retain the Components (as defined
      in clause 4.4), solely on behalf of and for the purchase of Madge, until
      such time all of the parties' obligations as set out in this Agreement are
      met, subject always to Madge complying with its obligations under this
      Agreement. For the avoidance of doubt, nothing contained in this clause 3
      shall prohibit Celestica from mitigating it's losses by the sale of
      Components (or otherwise) in the event of any breach by Madge of its
      obligations herein.

3.2   Celestica agrees that it will give Madge the right of first refusal to
      purchase components from them that Celestica holds that do not form part
      of the Components, as defined below in clause 4.4.

3.3   Celestica shall use its reasonable endeavours to provide all reasonable
      assistance to Madge in order to facilitate a smooth transition of all
      products currently being, and that have in the past been, manufactured by
      Celestica to the third party supplier(s) nominated by Madge. In addition
      to this overriding obligation, Celestica agrees to undertake the following
      specific actions:

      3.3.1 To build product for Madge in accordance with volumes set out in the
            Exit Plan attached at Schedule A and to have these products ready
            for Madge to take delivery of in accordance with Madge's requests to
            call off these products as per clause 3.3.3.

      3.3.2 To make Components available to Madge in the minimum amounts and in
            the volumes during the months as set out in the Payment Plan.

      3.3.3 Both parties agree that the precise form and constitution of Madge's
            monthly requirements of the products and Components which make up
            part of the minimum payments Madge will make under the Payment Plan,
            cannot be determined with any sufficient particularity in advance of
            the month to which the relevant payment detailed in the Payment Plan
            relates. However, Madge shall use its best endeavours to notify
            Celestica as far in advance as possible, being at least 30 days, as
            to its needs and as to the exact constitution required by Madge.

      3.3.4 Each consignment of products and Components as per the minimum
            amounts set out in the Payment Plan must be ready for collection by
            Madge during the applicable month and Madge will pay for all such
            products and Components delivered each month on or before the final
            Friday of the following month. Accordingly, the Components are
            bought ex-works (Incoterms 2000).

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      3.3.5 If Madge call off the products and/or Components as per 3.3.3 above,
            Celestica will deliver the products and/or Components during the
            month set out in the Payment Plan and if they do not have the
            products/Components available, the value of the items that Madge do
            not take will be deducted from the minimum amounts Madge has
            committed to purchase under the Payment Plan in that month.

      3.3.6 Such late delivered products/Components and any products/Components
            that Madge agree to take above the minimum payments set out in the
            Payment Plan, will be paid for by Madge 30 days after they are ready
            for delivery to Madge.

      3.3.7 Celestica shall provide any Tooling (as defined below) required by
            Madge or the third party supplier(s), in order to facilitate
            transferring the production of these products to a third party. The
            Tooling will be provided free of charge as per clause 3.3.9 below

      3.3.8 To provide, free of charge, all support deemed reasonably necessary
            (in terms of personnel based in Ireland) to Madge in order to
            transfer the products and the Components pursuant to clause 3.3.4.
            This support will be provided free of charge and will be provided
            for a period starting with the date of this agreement and ending on
            April 01, 2002 or such other date as is 2 months after Celestica has
            completed the build of Madge products, whichever is the later date.
            Any support required beyond the agreed time period will be subject
            to a separate commercial agreement to be concluded between the
            parties.

      3.3.9 Celestica will transfer, the customer specific tooling and other
            equipment identified on the attached Schedule C free of charge, (the
            "Tooling"). The timing of this transfer will be that after each
            product to be delivered as per the Exit Plan has been completed to
            Madge's satisfaction and the relevant Tooling is no longer needed by
            Celestica for the build of these Madge products, the Tooling will be
            transferred as per Madge's request. The basic rule is that Celestica
            will leave all equipment in-situ unless it is on their own site, in
            which case they will discuss these items with Madge. Madge will
            cover the cost of any Tooling being transported and reinstalled at
            the new supplier(s) or other designated site. Although the risk of
            the tooling passes to Madge, legal title to the Tooling will not
            pass to Madge until the last minimum payment from Madge under the
            Payment Plan has been made under this Agreement.

      3.3.10 Where any Tooling is not held on Celestica's site, Celestica agree
            that they will notify the holders of the Tooling within 10 days of
            title transferring to Madge as per 3.3.9 above, that legal title to
            this Tooling has been transferred to Madge and that from that date
            Madge will be responsible for that Tooling. Celestica will fax/email
            a copy of all such correspondence to Madge.

      3.3.11 Within 10 days of each transfer of title happening as per 3.3.9
            above Celestica will notify any manufacturers or supporters of the
            Tooling where there is a contract for support or warranty still in
            force that Madge now has title to the specific Tooling and that the
            benefit of such contract has now been novated to Madge. Celestica
            will fax/email a copy of all such correspondence to Madge. Prior to
            title being transferred Celestica will assist with any support or
            warranty issues with any third party contractors' who have contracts
            with Celestica to support or maintain the Tooling.

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      3.3.12 Celestica will not place any further purchase orders for components
            to produce Madge products, other than any it needs to produce the
            products as per the Exit Plan, unless specifically requested by
            Madge in writing and agreed by Celestica in Celestica's absolute
            discretion.

3.4   Once Madge have paid the final amount of the Existing AP/AR balance
      (fixed) and the payment due at the end of December 2001, as shown on the
      Payment Plan, Celestica will pay to Madge sums due under invoices raised
      by Madge for components supplied by Madge to Celestica. Such sum will be
      paid by Celestica on the last Friday in December, 2001.

4     MADGE OBLIGATIONS

4.1   Madge shall use its reasonable endeavours to ensure that all products
      currently manufactured by Celestica for Madge are transferred to a third
      party supplier as soon as possible with the minimum of disruption to
      Celestica, in line with the Payment and Exit Plans attached at Schedule A
      and B.

4.2   Madge shall only be entitled to withhold payments under this Agreement to
      the extent and in the amount that such with holdings would relate to the
      following:-

      4.2.1 Celestica failing to deliver the volumes of products as per the Exit
            Plan as per clause 3.3.1 above and/or

      4.2.2 The Components not being as defined below in clause 4.4 and/or

      4.2.3 The Components not being available for collection as per the time
            periods set out in the Payment Plan, in which case such the payment
            for such Components are not due until 30 days after the date that
            they are ready for delivery to Madge and/or

      4.2.4 It is found that there are any unplanned shortages in relation to
            any Components due to be delivered to Madge under the terms of the
            Payment Plan and that the said shortages relate to Components which
            are critical to the constitution of the product and upon which that
            product is dependant then Madge shall have the right to refuse to
            accept the consignment of Components to the extent that they form
            part of the incomplete kits. In this situation Celestica shall
            provide Madge with all relevant and necessary information to allow
            Madge to identify such shortages and place orders with suppliers so
            as to remedy any such shortage of Components as soon as possible. In
            this event, Madge will place such orders as soon as possible and
            shall take delivery of all delayed Components from Celestica
            immediately after receipt of the so ordered Components from third
            parties. Madge shall pay for all delayed Components within 30 days
            of taking delivery of them and/or

      4.2.5 For the avoidance of doubt, nothing within this Agreement shall in
            any way permit Madge to with hold payment for any amounts relating
            to AP/AR Balance (Fixed) as set out in Schedule B.

4.3   Celestica will carry out a full physical inventory count of the components
      it holds relating to Madge products during the weekend commencing 3rd
      November, 2001. Celestica will then, using the criteria listed below in
      4.4 calculate the components that Celestica considers are Components as
      defined below in clause 4.4. As part of this list Celestica will split out
      any Components that were ordered as per Madge's May 2001 SDR forecast and
      any that were not. Both lists will then be supplied to Madge and the
      parties will work together to agree such lists based upon the criteria set
      out in clause 4.4 below, within 14 days of Madge receiving them.

                                       5
<PAGE>
      After the total list is agreed Madge will then have 14 days to carry out a
      physical audit of the Components.

4.4   Madge will purchase the components that Celestica hold to produce Madge
      products at the Q3 2001 agreed standard cost, provided that they form part
      of the list agreed as per 4.3. i.e. that they are components that meet
      each of the following criteria:-

      1     Were purchased by Celestica in accordance with Madge's SDR
            forecasts;

      2     Are in good condition, not damaged or defective in any way;

      3     That were purchased in accordance with good purchasing practice and
            in appropriate minimum lot sizes;

      4     Are not components that have been identified as Celestica's
            responsibility under previous discussions between Celestica and
            Madge;

      5     Are not components for products that Madge has informed Celestica it
            will be discontinuing or changing, where Celestica was already been
            given an opportunity to sell such components to Madge; and

      6     Madge agree fall within these requirements.

      Such components are defined as "Components" and are used as such
      throughout this Agreement

4.5   Madge will work with the third party suppliers to try and take over the
      open Purchase Orders as agreed with Celestica and as attached as Schedule
      D. Madge will only take these over if the third party supplier agrees to
      this. In the event that the third party supplier does not agree, Madge
      will indemnify and hold Celestica harmless from each of its' obligations
      to that third party supplier by purchasing such components (providing that
      they are Components within the definition of such term under clause 4.4
      above) from Celestica 30 days after they are ready for Madge to take
      delivery of them.

5.    MUTUAL OBLIGATIONS

5.1   The parties agree that once the Exit Plan volumes have been completed and
      a product has been transferred to the third party supplier(s) Celestica
      shall be under no obligation to recommence the manufacture of any such
      products.

5.2   Madge will arrange collection of such Components as they are required from
      Celestica's site and will be responsible for all shipment, insurance and
      other charges to get these Components to Madge's new supplier(s). The
      Components will be packaged at Celestica's expense, except where Madge
      requires any special packaging, other than as per manufacturers'
      specification and Madge will pay for the same.

5.3   If any Components are found to be defective upon delivery to Madge (other
      than due to damage in transit) Madge will not pay for such Components and
      will return them to Celestica if they so request so that Celestica may
      take this up with the supplier of these Components. For the avoidance of
      doubt, the cost of shipment of any defective Components to Celestica will
      be paid for by Celestica.

5.4   The parties will use all reasonable endeavours to ensure that WIP meets
      quality and product revision standards through the process to covert it to
      finished goods. Celestica will provide a report showing such WIP that is
      left and the parties will discuss whether Madge is prepared to

                                       6
<PAGE>

      purchase/compensate Celestica for a proportion of this WIP. Madge is under
      no obligation to agree to provide Celestica any compensation for this at
      all, except in the situation where any issue preventing any WIP being
      converted into finished goods are a result of design issues.

5.5   Subject to clause 5.6 below, before December 31, 2001 the parties will
      settle all outstanding claims that are listed in Schedule E in one lump
      settlement. The parties agree that this list shows all outstanding claims
      that they are aware of as of the Effective Date and does not exclude
      either party being able to bring claims against the other for issues that
      arise in the future.

6.    CONFIDENTIALITY

      Neither party shall make any announcement, internally or externally
      relating to this agreement or its subject matter other than to an employee
      who has a need to know, without the prior written approval of the other
      party except as required by law or by any legal or regulatory authority.

7.    DURATION AND TERMINATION

7.1   This Agreement shall come into force on the Effective Date and subject as
      provided below shall continue until all of the obligations set out herein
      are completed, which the parties anticipate will be March 31, 2002, except
      for the obligations in clause 2.3, 3.3.8 and 5.5.

7.2   Either party shall be entitled forthwith to terminate this Agreement by
      written notice to the other if:-

      7.2.1 an encumbrancer takes possession or a receiver is appointed over any
            of the property or assets of that other party;

      7.2.2 that other party makes any voluntary arrangement with his creditors
            or becomes subject to an administration order;

      7.2.3 that other party goes into liquidation (except for the purposes of
            amalgamation or reconstruction and in such a manner that the company
            resulting therefrom effectively agrees to be bound by or assume the
            obligations imposed on that other party under this Agreement);

      7.2.4 anything analogous to any of the foregoing under the law of any
            jurisdiction occurs in relation to that other party.

8.    FORCE MAJEURE

      Neither Party will be liable to the other for any non-performance or
      breach of any of its obligations under this Agreement caused by matters
      beyond its reasonable control. Such matters include, without limitation,
      Act of God, insurrection or civil disorder, war or military operations,
      national or local emergency, acts of Government, industrial disputes of
      any kind (whether or not involving the employees of either party), failure
      or shortage of power supply, failure of any telecommunications network,
      system or link, fire, lightning, explosion, flood, subsidence, inclement
      weather.

9.    ASSIGNMENT

      Neither party may assign any of its rights or obligations under this
      Agreement without the prior written consent of the other party.

                                       7
<PAGE>

10.   LEGISLATION

      Each party must comply with all relevant statutes, rules, regulations and
      bylaws that apply to their respective rights and obligations under this
      Agreement, including (without limitation) all such statutes, rules,
      regulations and bylaws relating to data protection and privacy, including
      (if applicable) the Data Protection Act 1998.

11.   THIRD PARTY RIGHTS

      A person who is not a party to this Agreement has no right under the
      Contracts (Rights of Third Parties) Act 1999 to enforce any provision of
      this Agreement except that wholly owned subsidiaries of Madge are entitled
      to enforce any provisions of this Agreement that relate to them.

12.   WAIVER

      No delay, neglect or forbearance on the part of either party in enforcing
      against the other party any provision of this Agreement will either be or
      be deemed to be a waiver of that or any other provision or will in any way
      prejudice any right of that party under this Agreement.

13.   ENTIRE AGREEMENT

      This Agreement sets out the entire agreement between Madge and Celestica
      and supersedes any other agreements between the parties relating to the
      subject matter of this Agreement and this Agreement may not be varied
      unless agreed in writing by the properly authorised representatives of
      both parties.

14.   SEVERABILITY

      In the event that any of the terms and conditions of this Agreement are or
      are determined to be invalid, unlawful or unenforceable, such term or
      condition will be deemed never to have been included in the Agreement and
      will be severed from the remaining terms or conditions which will continue
      to be valid to the fullest extent permitted by law.

15.   NOTICE

15.1  All notices must be given in writing and delivered by hand, first class
      prepaid post, facsimile marked for the attention of and to the address of
      the relevant party specified in this Agreement.

15.2  In the absence of proof of earlier receipt, any notice or communication
      will be deemed to have been given; (i) if delivered personally, when left
      at the address of the recipient; (ii) if sent by first class pre-paid
      letter, two days after posting; (iii) if sent by fax, on completion of
      successful transmission as evidenced by the date printed on the facsimile
      advice note produced by the sender's machine (provided there is no
      manifest error in such date).

15.3  Either party may change its address by providing the other party with
      thirty (30) days prior written notice of any such change.

                                       8
<PAGE>
16.   GOVERNING LAW AND JURISDICTION

      This Agreement shall be governed by and construed in all respects in
      accordance with the laws of England and each party submits to the
      exclusive jurisdiction of the English courts in relation to any matter or
      dispute arising out of or connected with this Agreement.

AS WITNESS the hands of the parties or their duly authorised representatives the
day and year first above written

Signed by               )
For and on behalf of    )
Madge Networks NV       )  /s/ Martin Malina

Signed by               )
For and on behalf of    )
Celestica Ireland Ltd   ) /s/ Serge Lamothe

                                       9

<PAGE>
                                   SCHEDULE A
                                    EXIT PLAN

                                   SCHEDULE B
                                THE PAYMENT PLAN

                                   SCHEDULE C
                                     TOOLING

                                   SCHEDULE D
        OPEN PURCHASE ORDERS THAT MADGE WILL TAKE OVER AS PER CLAUSE 4.5.

                                   SCHEDULE E
                           CURRENT OUTSTANDING CLAIMS.

Schedules are available upon request.

                                       10

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