Document:

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                                                                   EXHIBIT 10.24

CHELLO BROADBAND N.V. FOUNDATION STOCK OPTION PLAN

    The following represents the so-called Foundation stock option plan (the
"PLAN") of chello broadband N.V., a company incorporated under the laws of the
Netherlands, having its corporate seat at Fred. Roeskestraat 123, Amsterdam, the
Netherlands (the "COMPANY"), as it was adopted on June 23, 1999.

ARTICLE 1--Definitions

    For the purposes of this Plan,

(i) "AFFILIATED COMPANY" means a company in which the Company directly or
    indirectly owns an interest of at least one third of the shares of stock or
    the other capital interest of that company.

(ii) "BOARD OF MANAGEMENT" means the board of management of the Company.

(iii) "CERTIFICATE" means a right to be issued by the Foundation representing
    the economic ownership of one Share ("certificaat van aandeel").

(iv) "EMPLOYEE" means any member of the Board of Management in their capacity as
    beneficiaries under the Plan and any employee of a Group Company.

(v) "FOUNDATION" means the foundation for the Administration of the chello Stock
    Option Plan, the current Articles of Association and conditions of
    administration are attached hereto as Appendix A.

(vi) "GROUP COMPANY" means the Company or one of its Affiliated Companies.

(vii) "IPO" means initial public offer of Shares.

(viii)"OPTION" means a right to subscribe for Certificates and/or Shares, as the
    case may be, pursuant to this Plan.

(ix) "OPTION DATE" means in relation to any Options, the date on which the
    Options are, were or are to be granted.

(x) "RIGHT" means one Share or one Certificate, as the case may be, issued or to
    be issued under an Option.

(xi) "SHARES" means the ordinary shares in the capital of the Company.

(xii) "SUPERVISORY BOARD" means the supervisory board of the Company.

(xiii)"WTE 95" means the Netherlands Securities Transaction Supervision Act 1995
    ("Wet Toezicht Effectenverkeer 1995"), as amended.

(xiv) "VALUE CALCULATION DATE" shall mean either the date an Employee offers the
    Shares for sale to the Foundation or, if earlier, the effective date of
    termination of employment, except in case the employment is terminated
    because of permanent disability, retirement, early retirement or death of
    the Employee concerned, in which case the date shall be one year after the
    effective date of termination of employment, in the latter case unless the
    Rights are offered to the Foundation more than 30 days in advance of such
    date, in which case the exercise date shall be the Value Calculation Date.

ARTICLE 2--Granting of Options

2.1 The Options to be granted to an Employee will be approved by the Supervisory
    Board, on the recommendation of the Board of Management.

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2.2 The Supervisory Board shall given written notice of the intention to grant
    Options under this Plan to the Securities Board of The Netherlands
    (Stichting Toezicht Effectenverkeer: "STE") at least two months before the
    date on which Options are granted.

2.3 The terms on which the Options are granted shall not be changed, unless
    otherwise stated in this Plan.

2.4 The total number of Rights with respect to which Options may be granted
    pursuant to this Plan shall be determined by the Supervisory Board. Rights
    issued or issuable upon exercise of Options shall be applied to reduce the
    maximum number of Rights available for use under the Plan. Rights underlying
    expired or terminated and unexercised Options are available for reissue for
    grant of Options under this Plan.

2.5 In case any of the events mentioned in Article 4.2 occurs, the Supervisory
    Board will adjust the maximum number of Rights accordingly.

2.6 The Options may be granted each year at the quarterly meetings of the
    Supervisory Board. Furthermore, Options may be granted to the Employees
    effective on their first date of employment or on the first date of the
    assumption of their new tasks in the event of a promotion.

ARTICLE 3--Modification of Option Terms

    The Supervisory Board shall have the discretion and authority to grant
Options with such modified terms as the Board of Management recommends as
necessary or appropriate in order to comply with the laws of the country in
which the Employee resides or is employed, or for other reasons but then only in
compliance with Netherlands law.

ARTICLE 4--Option Price

4.1 With respect to grants of Options determined prior to the effective date of
    the IPO, the price to be paid to acquire the Rights (the "OPTION PRICE")
    will equal the fair market price of the Shares at the date of the grant, to
    be determined in accordance with article 8.3. With respect to grants of
    Options determined after the effective date of the IPO, the price to be paid
    to acquire the Rights (hereinafter the "IPO OPTION PRICE") will equal the
    closing price of the Shares on the Amsterdam Stock Exchange on the date of
    the grant concerned.

4.2 If after the Option Date one of the following events occurs:

    --  a split of the Shares in Shares with a lower par value;

    --  a repayment of capital on the Shares;

    --  the issue of shares in the capital of the Company with a preference
       right;

    --  the issue of shares in the capital of the Company out of the retained
       earnings or the capital surplus account,

    then the Option Price or the IPO Option Price and/or the number of the
    Rights with respect to which Options have been granted will be adjusted if
    reasonably necessary, in such a way that the fair market value of the
    Options immediately after the above mentioned occasions is equal to the fair
    market value of the Options immediately before such occasion.

    The Company will inform the Employee in writing of any adjustment of the
    Option Price or the IPO Option Price and/or the number of the Shares with
    respect to which Options have been granted.

ARTICLE 5--Exercise and Non-transferability

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5.1 Options may only be exercised by the Employee, or in the event that the
    Employee shall become permanently disabled or has deceased, by the
    administrator of the Employee's estate or his or her heirs (hereinafter
    jointly and severally the "LEGAL SUCCESSORS").

5.2 Options may be exercised in full or in part.

5.3 Options will be exercised via written notice from the Employee or the Legal
    Successors to the Company to the address as instructed by the Company. Any
    such notice will state the number of Rights to be acquired pursuant to such
    exercise.

5.4 An Option granted to an Employee shall not be transferable by the Employee
    other than by will or the laws of descent and distribution. An Option
    granted to an Employee shall not be assigned, pledged or hypothecated in any
    way (whether by operation of law or otherwise) and shall not be subject to
    execution, attachment or similar process.

5.5 Options are granted unconditionally and may be exercised immediately after
    they have been granted, but always with due observance of article 5.6. The
    right to exercise Options remains valid for a period of five years after the
    Option Date.

5.6 Unless the Option is exercised on the expiry date or within a period of five
    business days in advance of the expiry date, the Employee is not permitted
    (i) to exercise the Option while having knowledge of inside information
    ("voorwetenschap") as defined in article 46(2) of the WTE 95 and (ii) to
    exercise the Option in a closed period as defined in the chello Code for the
    Prevention of Insider Trading, in the event that this code applies to the
    Employee.

ARTICLE 6--Delivery of Rights and Related Matters

6.1 Subject to Articles 7 and 8 below, within five days after the exercise of an
    Option, the Company shall itself, or cause the Foundation to transfer the
    number of Rights in respect of which the Option is exercised against payment
    in full of the Option Price.

6.2 The Employee and the Legal Successors shall not bear any transaction costs
    related to the obtaining of Certificates, nor the obtaining of Shares in
    exchange for Certificates, nor the obtaining of Shares.

ARTICLE 7--Consequences of Termination of Employment

7.1 If the Employee is no longer employed by a Group Company because of
    retirement, early retirement, permanent disability or death, the unexercised
    Options (if any) will expire one year after the date of such termination, or
    five years after the Option Date concerned, whichever is earlier; it being
    understood that in the case of the death of an employee, the expiration
    shall never be earlier than six months after the date of death.

7.2 In the event the Employee is dismissed by the Company because of a so-called
    "urgent reason" ("dringende redenen") under Dutch law, or because of
    documented and material non-performance by the Employee, then all Options
    shall expire immediately and without notice. Furthermore, any Certificates
    acquired by the Employee by the exercise of Options that would, if not
    exercised, have expired pursuant to the first sentence of this Article 7.2
    shall immediately be sold and transferred to the Foundation in consideration
    of the original Option Price or the original IPO Option Price as determined
    in Article 4.1. Upon the grant of an Option, the Employee concerned will
    irrevocably authorise the Company to execute the required (notarial) deed in
    his or her name. Any costs relating to the sale and transfer of Rights to be
    so transferred shall be for the account of the Company.

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7.3 In the event that the Employee is no longer employed within a Group Company
    for a reason other than those referred to in Article 7.1 or 7.2 (or in case
    in a dispute it is determined that the Company's claim on the application of
    Article 7.2 was not justified), the following shall apply:

    (i) the following parts of the total number (including Options already
       exercised) of Options granted to such Employee shall (if not exercised
       already) automatically expire without notice or compensation:

       a.  during the first month as from the Option Date in which such event
           occurs: 100 per cent of the Option is granted;

       b.  during the second month as from the Option Date in which such event
           occurs: 47/48th of the Options granted;

       c.  for each following month the number under b) will be reduced with
           1/48th;

    (ii) any Rights acquired by the Employee by the exercise of Options that
       would, if not exercised, have expired pursuant to Article 7.3(i) shall
       immediately be sold and transferred to the Foundation in consideration of
       the original Option Price or the original IPO Option Price as determined
       in Article 4.1. Upon the grant of an Option, the Employee concerned will
       irrevocably authorise the Company to execute the required (notarial) deed
       in his or her name. Any costs relating to the sale and transfer of Rights
       to be so transferred shall be for the account of the Company;

    (iii) any Options, not expired pursuant to Article 7.3(i), if any, will
       expire 30 days after the termination of the employment, or 5 years after
       the Option Date, whichever is earlier.

7.4 For the benefit of the Employee concerned, upon the recommendation of the
    Board of Management, the Supervisory Board may decide to deviate from the
    provisions under this Article 7.

ARTICLE 8--Sale of Rights by the Employee

8.1 All sections of Article 8 will only apply after one or more Options have
    been exercised. The Articles 8.2 and 8.3 will only apply prior to the IPO.

8.2 If the Employee wants to sell Rights acquired pursuant to Options, the
    Employee has to offer these Rights to the Foundation at a price equal to the
    fair market value at the Value Calculation Date. The Foundation shall have
    the obligation to purchase the Rights for that price from the Employee
    within one month after the Value Calculation Date.

8.3 The fair market value as referred to in Article 8.2 shall be determined by
    the Supervisory Board based on a recommendation from the Board of
    Management. The Supervisory Board will, from time to time, provide the Board
    of Management with instructions as to how and when to prepare its
    recommendation. It is anticipated that those instructions will include the
    manner in which a professional advisor may be engaged by the Supervisory
    Board in order to verify the valuation and the manner in which a
    disagreement between an Employee and the Company regarding the fair market
    value will be settled, including an objective mechanism involving a
    professional advisor not involved in the first determination verifying
    whether or not the determination of the fair market value by the Supervisory
    Board is reasonable.

    To avoid excessive administration, the fair market value under Article 8.2
    will be established no more frequently than once every six months using the
    then current valuation methodology, and the most recent prior valuation
    shall be deemed to be the fair market value at the Value Calculation Date.
    If there has been an event which in the opinion of the Board of Management
    is likely to have a material effect on the fair market value then a new
    valuation may be carried out.

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8.4 If an Employee exercises part or all of his or her Option(s), then the
    Company shall itself (or cause the Foundation to) transfer only such number
    of shares to the Employee concerned as at the time of the exercise are no
    longer subject to an obligation under Article 7.3. Should the Employee have
    exercised his or her Option for a number of Rights in excess of then number
    of Shares referred to in the first sentence of this Article 8.4, then the
    remainder shall be issued to the Employee in the form of Certificates.

8.5 Rights obtained by an Employee based on the exercise of an Option, can not
    be sold or encumbered by the Employee as long as Article 7.3 would remain
    applicable in respect of those Certificates.

8.6 After the IPO upon written notice to that effect from the Employee to the
    Foundation at the address as instructed by the Company, the Foundation shall
    exchange such number of Certificates for Shares as included in the
    Employee's notice, but never in excess of the number of Certificates which
    are no longer subject to Article 7.3.

8.7 Following the transfer of Shares to the Employee concerned, the Company
    shall have no further liabilities or obligations with respect to (part of
    the) Option exercised by the Employee.

8.8 The Rights acquired upon the exercise of the Options may only be sold by the
    Employee if he or she is not in the possession of inside information as
    defined in Article 46(2) of the WTE 95, unless

    (i) the Rights are sold on the expiry date of the Options or within a period
       of five business days in advance of the expiry date of the Options, and

    (ii) the Employee has given written notice to the Company of his or her
       intention to sell such Rights at least two months before the day the
       Options expire.

    After the Employee has notified the Company as stated under (ii), the
    Employee is obliged to sell the Shares within the period indicated under
    (i). If the chello Code for the Prevention of Insider Trading applies to the
    Employee, the Rights acquired upon the exercise of the Options shall not be
    sold in a closed period as defined in this code, unless the Rights are sold
    in the manner described under (i) and (ii).

ARTICLE 9--Taxes and social security premiums

9.1 Any tax or social security premiums payable by the Employee or his Legal
    Successors with respect to the granting, maintaining or the exercising of
    the Options or the sale of the Shares is for the account of the Employee or
    his Legal Successors, respectively.

9.2 If (part of) the Options are not exercised, any tax and/or social security
    premiums paid will not be refunded or compensated by the Company.

ARTICLE 10--Merger and take-over

10.1 In case of change of control (or ownership) of 50 percent or more of the
    Shares of the Company or merger of the Company with another enterprise to
    which the Shares have to be surrendered in exchange for the issue of other
    shares or in the event that 50 percent or more of the Shares are taken over,
    the Options granted or Rights held pursuant to Options granted will, if the
    Company so chooses, be acquired by the Foundation immediately for the same
    value per Right as that sale, merger or exchange.

    Furthermore, should an Employee be dismissed after the event of such a
    change of control, other than for "urgent reasons" ("dringende redenen"),
    Articles 7.2 and 7.3 shall not be applicable to such Employee for any
    Options still held by such Employee, it also being understood that the
    Employee concerned shall have a one year period from the effective date of
    termination of the

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    employment (or five years from the Option Date, whichever comes earlier) to
    exercise the Options concerned.

10.2 In the event of a merger in which the Company is not the surviving entity,
    the Foundation may require holders of Options and/or Rights to exchange
    their Options and/or Rights for new options and/or certificates in a
    foundation for the administration of the new merged entity's stock option
    plan, provided always that such new rights will be at least equivalent in
    value to the Options and/or Rights.

ARTICLE 11--Employment

    Neither the grant of the Options nor this Plan itself or any provisions
therein can be interpreted as an obligation of the Company or an Affiliated
Company to employ the Employee for a certain period of time or to guarantee him
a certain salary or position.

ARTICLE 12--Insider trading rules

    The Employee will at any time comply with the provisions regarding insider
trading as set forth in the WTE 95 and implementing rules. Furthermore, the
Employee agrees to adhere to the chello Code for the Prevention of Insider
Trading, as far as this code is applicable to the Employee.

ARTICLE 13--Notices

13.1 Notices pursuant to this Plan to be submitted by the Company to the
    Employee, shall be deemed to be addressed correctly if they have been sent
    to the address of the Employee as known by the personnel department of the
    Group Company concerned.

13.2 Notices pursuant to this Plan to be submitted by the Employee to the
    Company, shall be deemed to be addressed correctly if they have been sent to
    the address of the Company at Fred. Roeskestraat 123, 1076 EE, Amsterdam,
    The Netherlands, except to the extent the Company has provided written
    notice to the Employee containing different instructions.

ARTICLE 14--Choice of law and jurisdiction

    This Plan will be governed by Dutch law. With the exception of disputes
referred to in Article 8.4, all disputes arising in connection with this Plan
shall be brought before the competent court in the district of Amsterdam.

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                                                                   EXHIBIT 10.25

                             CHELLO BROADBAND N.V.
                           PHANTOM STOCK OPTION PLAN
                           (EFFECTIVE JUNE 19, 1998)
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                             CHELLO BROADBAND N.V.

                           PHANTOM STOCK OPTION PLAN

                                   ARTICLE I
                                  INTRODUCTION

    1.1 ESTABLISHMENT. Chello Broadband N.V., a Netherlands corporation
("Chello"), hereby establishes the Chello Broadband N.V. Phantom Stock Option
Plan (the "Plan") for certain key employees of the Company (as defined in
Article II) and certain consultants to the Company. The Plan permits the grant
of phantom stock options to certain key employees of, and consultants to, the
Company.

    1.2 PURPOSES. The purposes of the Plan are to provide those who are selected
for participation in the Plan with added incentives to continue in the
long      term service of the Company and to create in such persons a more
direct interest in the future success of the operations of the Company by
relating incentive compensation to increases in shareholder value, so that the
income of those participating in the Plan is more closely aligned with the
income of the Company's shareholders. The Plan is also designed to provide a
financial incentive that will help the Company attract, retain and motivate the
most qualified employees and consultants.

    1.3 EFFECTIVE DATE. The effective date of the Plan shall be June 19 1998
(the "Effective Date"). This Plan, each amendment to the Plan, and each phantom
stock option granted hereunder is conditioned on and shall be of no force or
effect until approval of the Plan by the holders of the shares of voting stock
of the Company unless the Company, on the advice of counsel, determines that
shareholder approval is not necessary.

                                   ARTICLE II
                                  DEFINITIONS

    2.1 DEFINITIONS. The following terms shall have the meanings set forth
below:

    (a) "AFFILIATED CORPORATION" means any corporation or other entity that is
       affiliated with Chello through stock ownership or otherwise and is
       designated as an "Affiliated Corporation" by the Board;

    (b) "BOARD" means the Supervisory Board of Chello.

    (c) "CODE" means the Internal Revenue Code of 1986, as it may be amended
       from time to time.

    (d) "COMMITTEE" means a committee consisting of members of the Board who are
       empowered hereunder to take actions in the administration of the Plan.
       During all periods when the Company is subject to the reporting
       requirements of the Securities Exchange Act of 1934 (the "1934 Act"), the
       Committee shall be so constituted at all times as to permit the Plan to
       comply with Rule 16b-3 or any successor rule promulgated under the 1934
       Act. Members of the Committee and any subcommittee or special committee
       shall be appointed from time to time by the Board, shall serve at the
       pleasure of the Board and may resign at any time upon written notice to
       the Board. The Committee shall recommend to the Board the Eligible
       Employees and Eligible Consultants who shall be granted Options and the
       terms and conditions thereof.

    (e) "COMPANY" means Chello and the Affiliated Corporations.

    (f) "DISABLED" or "DISABILITY" shall have the meaning given to such terms in
       Section 22(e)(3) of the Code.

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    (g) "ELIGIBLE CONSULTANTS" means those consultants and other individuals who
       provide services to the Company (and who are not an Eligible Employee)
       and whose judgment, initiative and effort are important to the Company
       for the management and growth of its business. Eligible Consultants do
       not include the Company's directors who are not employees of the Company.

    (h) "ELIGIBLE EMPLOYEES" means those employees (including, without
       limitation, officers and directors who are also employees) of the Company
       or any subsidiary or division thereof (including employees of UIH and/or
       UPC or their subsidiaries who are seconded to the Company or any
       subsidiary or division thereof), whose judgment, initiative and efforts
       are important to the Company for the management and growth of its
       business.

    (i) "FAIR MARKET VALUE" of the Stock for purposes of the grant of Options
       under the Plan shall be determined by the Committee in accordance with
       Article VIII.

    (j) "CHELLO" means Chello Broadband N.V. and any successor thereto.

    (k) "INITIAL PUBLIC OFFERING" means the initial listing or admission of the
       Stock of the Company for Public Trading.

    (l) "OPTION" means a right to elect to receive, for a stated period of time,
       cash equal to the excess of the Fair Market Value of Stock over the
       Option Price.

    (m) "OPTION CERTIFICATE" shall have the meaning given to such term in
       Section 6.2 hereof.

    (n) "OPTION HOLDER" means a Participant who has been granted one or more
       Options under the Plan.

    (o) "OPTION PRICE" means the base price for determining the increase in
       value of a Share of Stock, determined in accordance with subsection
       6.2(b).

    (p) "PUBLICLY TRADED" or "PUBLIC TRADING" means listing or trading on the
       NASDAQ National Market System or a national (US, Dutch or other European)
       securities exchange.

    (q) "SHARE" means a share of Stock.

    (r) "STOCK" means the ordinary shares of stock of Chello.

    (s) "UIH" means United International Holdings, Inc..

    (t) "UPC" means United Pan-Europe Communications N.V. and any successor
       thereto.

    2.2 GENDER AND NUMBER. Except when otherwise indicated by the context, the
masculine gender shall also include the feminine gender, and the definition of
any term herein in the singular shall also include the plural.

                                  ARTICLE III
                              PLAN ADMINISTRATION

    The Plan shall be administered by the Committee, subject to the prior
approval of its actions or inactions by the Supervisory Board of UPC. The
Committee shall determine the form or forms of the Option Certificates, and
other agreements with Option Holders that shall evidence the particular
provisions, terms, conditions, rights and duties of Chello and the Option
Holders with respect to Options granted pursuant to the Plan, which provisions
need not be identical except as may be provided herein. The Committee may from
time to time adopt such rules and regulations for carrying out the purposes of
the Plan as it may deem proper and in the best interests of the Company. The
Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or in any agreement entered into hereunder in the
manner and to the extent it shall deem expedient and it shall be the sole and
final judge of such expediency. No member of the Committee shall be liable for

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any action or determination made in good faith. The determinations,
interpretations and other actions of the Committee pursuant to the provisions of
the Plan shall be binding and conclusive for all purposes and on all persons.

                                   ARTICLE IV
                           STOCK SUBJECT TO THE PLAN

    4.1 NUMBER OF SHARES. The number of Shares that may be subject to Options
shall not exceed 1,500,000, subject to the provisions regarding changes in
capital described below. The maximum number of Shares with respect to which a
Participant may receive Options under the Plan in any calendar year is 400,000
Shares. This authorization may be increased from time to time by approval of the
Board and by the stockholders of Chello if, in the opinion of counsel for
Chello, stockholder approval is required. Shares of Stock with respect to which
Options are exercised shall be applied to reduce the maximum number of Shares
remaining available for use under the Plan. Any Shares of Stock that are subject
to an Option that expires or for any reason is terminated unexercised shall
automatically become available for use under the Plan.

    4.2 ADJUSTMENTS FOR STOCK SPLIT, STOCK DIVIDEND, ETC. If Chello shall at any
time increase or decrease the number of its outstanding Shares (from 20,000,000)
or change in any way the rights and privileges of such Shares by means of the
payment of a stock dividend or any other distribution upon such Shares payable
in Stock, or through a stock split, subdivision, consolidation, combination,
reclassification or recapitalization involving the Stock, then in relation to
the Stock that is affected by one or more of the above events, the numbers,
rights and privileges of the following shall be increased, decreased or changed
in like manner as if they had been issued and outstanding, fully paid and
nonassessable at the time of such occurrence: (i) the Shares as to which Options
may be granted under the Plan and (ii) the Shares then included in each
outstanding Option granted hereunder. Upon any occurrence described in this
Section 4.2, the total Option Price under each then outstanding Option shall
remain unchanged but shall be apportioned ratably over the increased or
decreased number of Shares subject to the Option.

    4.3 ADJUSTMENTS FOR CERTAIN DISTRIBUTIONS OF PROPERTY. If Chello shall at
any time distribute with respect to its Stock assets or securities of other
persons (excluding cash dividends or distributions payable out of capital
surplus and dividends or other distributions referred to in section 4.2), then
the Option Price of outstanding Options shall be adjusted to reflect the fair
market value of the assets or securities distributed, the Company shall provide
for the delivery upon exercise of such Options of cash in an amount equal to the
fair market value of the assets or securities distributed or a combination of
such actions shall be taken, all as determined by the Committee in its
discretion. Fair market value of the assets or securities distributed for this
purpose shall be as determined by the Committee; provided however, that if
Chello is not Publicly Traded and the assets or securities represent an
operating business, the fair market value shall be determined in accordance with
Article VIII.

    4.4 CERTAIN ISSUANCES OF CAPITAL STOCK. If any person, including without
limitation UPC, acquires, whether by purchase, capital contribution or
otherwise, any shares of the capital stock of Chello at a price less than NLG
10.00 per share, and if the Committee shall in its discretion determine that
such acquisition equitably requires an adjustment in the number of Shares
subject to an Option, an adjustment in the Option Price, or the taking of any
other action by the Committee, such adjustments shall be made or other action
taken by the Committee and shall be effective for all purposes of the Plan and
each outstanding Option.

    4.5 DETERMINATION BY THE COMMITTEE, ETC. Adjustments under this Article IV
shall be made by the Committee, whose determinations with regard thereto shall
be final and binding upon all parties thereto.

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                                   ARTICLE V
                                 PARTICIPATION

    In accordance with the provisions of the Plan, the Committee shall, in its
sole discretion, select Option Holders from among Eligible Employees and
Eligible Consultants to whom Options will be granted and shall specify the
number of Shares subject to each Option and such other terms and conditions of
each Option as the Committee may determine to be necessary or desirable and
consistent with the terms of the Plan. Eligible Employees shall be selected from
the employees of the Company who are performing services in the management,
operation and growth of the Company, and contribute, or are expected to
contribute, to the achievement of long-term corporate objectives. Eligible
Consultants shall be selected from the consultants and other individuals who
provide services to the Company with respect to the operation and growth of the
Company and who contribute, or are expected to contribute, to the achievement of
long-term corporate objectives. Eligible Employees and Eligible Consultants may
be granted from time-to-time one or more Options. The grant of each such Option
shall be separately approved by the Committee, and receipt of one such Option
shall not result in automatic receipt of any other Option. Upon determination by
the Committee that an Option is to be granted to an Eligible Employee or
Eligible Consultant, written notice shall be given to such person, specifying
the terms, conditions, rights and duties related thereto.

                                   ARTICLE VI
                                    OPTIONS

    6.1 GRANT OF OPTIONS. Coincident with or following designation for
participation in the Plan, Eligible Employees and Eligible Consultants may be
granted one or more Options. An Option shall be considered as having been
granted on the date specified in the grant resolution of the Committee.

    6.2 OPTION CERTIFICATES. Each Option granted under the Plan shall be
evidenced by a written certificate or agreement (an "Option Certificate"). An
Option Certificate shall be issued by Chello in the name of the Participant to
whom the Option is granted (the "Option Holder") and in such form as may be
approved by the Committee. The Option Certificate shall incorporate and conform
to the conditions set forth in this Section 6.2 as well as such other terms and
conditions that are not inconsistent as the Committee may consider appropriate
in each case.

    (a) NUMBER OF SHARES. Each Option Certificate shall state that it covers a
       specified number of Shares of Stock, as determined by the Committee.

    (b) OPTION PRICE. The base price for determining the increase in value of a
       Share of Stock shall be determined in each case by the Committee and set
       forth in the Option Certificate.

    (c) DURATION OF OPTIONS; RESTRICTIONS ON EXERCISE. Each Option Certificate
       shall state the period of time, determined by the Committee, within which
       the Option may be exercised by the Option Holder (the "Option Period").
       The Option Period must end, in all cases, not more than ten years from
       the date the Option is granted. Each Option Certificate shall provide
       that the Option shall become exercisable (vest) in increments if the
       Option Holder is continuously employed by Chello or an Affiliated
       Corporation from the date of grant through the following vesting dates:
       1/48th of the number of Shares subject to the Option shall vest on the
       same date of the month as the date of grant, commencing with the month
       next following the month in which the Option was granted. If the vesting
       formula results in a fractional share, the vested increment shall be
       rounded down to the next whole share. The Option shall be fully vested on
       the fourth anniversary of the date of grant. However, the Committee, with
       the approval of the Board, may establish different vesting schedules for
       specified Option grants. Except as set forth in Article VII, the Option
       shall not be exercisable as to any Shares for which the continuous
       employment requirement is not satisfied, regardless of the circumstances

                                       4
<PAGE>
       under which the Option Holder's employment by the Company is terminated.
       The number of Shares as to which the Option may be exercised is
       cumulative, so that once the Option is exercisable as to any Shares it
       shall continue to be exercisable as to such Shares until expiration or
       termination of the Option.

    (d) TERMINATION OF SERVICES, DEATH, DISABILITY, ETC. The Committee may
       specify the period, if any, after which an Option may be exercised
       following termination of the Option Holder's services. The effect of this
       subsection 6.2(d) shall be limited to determining the consequences of a
       termination and nothing in this subsection 6.2(d) shall restrict or
       otherwise interfere with the Company's discretion with respect to the
       termination of any individual's services. If the Committee does not
       otherwise specify, the following shall apply:

       (i) If the employment or consulting relationship of an Option Holder by
           or with the Company terminates for any reason other than death or
           Disability within six months after the date the Option is granted or
           if the employment or consulting relationship of the Option Holder by
           or with the Company is terminated within the Option Period for cause,
           as determined by the Company, the Option shall thereafter be void for
           all purposes. As used in this subsection 6.2(d), "cause" shall mean a
           gross violation, as determined by the Company, of the Company's
           established policies and procedures.

       (ii) If the employment or consulting relationship of the Option Holder
           terminates because the Option Holder becomes Disabled within the
           Option Period, the Option may be exercised by the Option Holder (or,
           in the case of his death after becoming Disabled, by those entitled
           to do so under his will or by the laws of descent and distribution)
           within one year following such termination (if otherwise within the
           Option Period), but not thereafter. In any such case, the Option may
           be exercised only as to the Shares as to which the Option had become
           exercisable on or before the date of termination because of
           Disability.

       (iii) If the Option Holder dies within the Option Period, while employed
           by the Company, while a consultant to the Company, or within the
           three-month period referred to in (iv) below, the Option may be
           exercised by those entitled to do so under his will or by the laws of
           descent and distribution within one year following his death (if
           otherwise within the Option Period), but not thereafter. In any such
           case the Option may be exercised only as to the Shares as to which
           the Option had become exercisable on or before the date of the Option
           Holder's death.

       (iv) If the employment or consulting relationship of the Option Holder by
           or with the Company terminates within the Option Period for any
           reason other than for cause, Disability or death, and such
           termination occurs more than six months after the Option is granted,
           the Option may be exercised by the Option Holder within three months
           following the date of such termination (if otherwise within the
           Option Period), but not thereafter. In any such case, the Option may
           be exercised only as to the Shares as to which the Option had become
           exercisable on or before the date of termination.

    (e) CONSIDERATION FOR GRANT OF OPTION. As consideration for the grant of the
       Option, the Option Holder agrees to remain in the employment of the
       Company, at the pleasure of the Company, for a continuous period of at
       least six months after the date the Option is granted, at the salary rate
       or other compensation in effect on the date of such agreement or at such
       changed rate as may be fixed, from time to time, by the Company. Nothing
       in this paragraph shall limit or impair the Company's right to terminate
       the employment of any employee. The Committee may require each Eligible
       Consultant who is granted an Option to agree to comply with all of the
       terms and conditions or specified terms and conditions of the agreement
       between the Eligible Consultant and the Company.

                                       5
<PAGE>
    (f) EXERCISE. The method for exercising each Option granted hereunder shall
       be by delivery to Chello of written notice specifying the number of
       Shares with respect to which the Option is exercised. The Option shall be
       exercised on the date Chello receives the notice of exercise. Within
       30 days after the date of receipt of the notice, Chello shall deliver to
       the Option Holder a payment (net of the amount required to be withheld
       under applicable federal, state, and local tax laws) for an amount equal
       to the Fair Market Value of the Shares of Stock on the date of exercise
       over the Option Price for the Shares. Payment shall be made, as the
       Company determines in its sole discretion, in (i) cash, (ii) freely
       tradable shares of Class A Common Stock of UIH or of common stock of UPC,
       which shall be valued at the closing price on the day before the date the
       Company makes payment to the Option Holder, or (iii) if the Stock is
       Publicly Traded, freely tradable shares of Stock. Should the Company
       determine to make a cash payment even though the Stock is Publicly
       Traded, then the employee shall have the option to receive an equivalent
       number freely tradable shares of Stock instead. If Options on less than
       all Shares evidenced by an Option Certificate are exercised, Chello shall
       deliver a new Option Certificate evidencing the Option on the remaining
       Shares upon delivery of the Option Certificate for the Option being
       exercised.

    6.3 INITIAL PUBLIC OFFERING. Upon the closing of an Initial Public Offering,
each holder of an Option shall be permitted to convert the Option to an option
(the "Other Option") under a stock option plan to be adopted by the Company,
covering the same number of shares and having an option price equal to the
Option Price. The Other Option shall be treated under the Other Plan as if it
were granted as of the same date as specified in the Option Certificate. The
exercise period under the Other Plan will be for a maximum period of five
(5) years from the date of the Option Certificate. Any tax consequences incurred
by the Option Holder as a result of the conversion of an Option into an Other
Option shall be for the account of the Option Holder. The Option Holder shall
have a period of 10 days before the pricing meeting at which the price to the
public is determined in which to elect whether or not to convert the Option. If
the Option Holder elects to convert the Options, they shall be converted to the
Other Options immediately after the pricing meeting and before the closing of
the IPO. Options that are not converted shall continue to be outstanding and
shall continue to be subject to their terms and conditions and the terms and
conditions of the Plan.

                                  ARTICLE VII
                  CORPORATE REORGANIZATION; CHANGE IN CONTROL

    7.1 REORGANIZATION. Upon the occurrence of any of the following events, all
Options then outstanding shall become exercisable in full, regardless of whether
all conditions of exercise relating to length of service have been satisfied:
(a) the merger or consolidation of the Company with or into another corporation
(other than a consolidation or merger, or reorganization in which the Company is
the continuing corporation and which does not result in any reclassification or
change of outstanding shares of Stock); or (b) the sale or conveyance of the
property of the Company as an entirety or substantially as an entirety (other
than a sale or conveyance in which the Company continues as holding company of
an entity or entities that conduct the business or business formerly conducted
by the Company); or (c) the dissolution or liquidation of the Company.

    7.2 CHANGE IN CONTROL.

    (a) FULL VESTING. If a Change in Control (as defined below) occurs, all
       Options shall become exercisable in full, regardless of whether all
       conditions of exercise relating to length of service have been satisfied.

    (b) PUBLICLY TRADED. If the Stock is Publicly Traded, a "Change in Control"
       is deemed to have occurred if (i) a person (as such term is used in
       Section 13(d) of the Exchange Act) becomes the beneficial owner (as
       defined in Rule 13d-3 of the 1934 Act) of shares of the Company

                                       6
<PAGE>
       having 30% or more of the total number of votes that may be cast for the
       election of directors of the Company without the prior approval of at
       least a majority of the members of the Board unaffiliated with such
       person or (ii) individuals who constitute the directors of the Company at
       the beginning of a 24-month period cease to constitute at least 2/3 of
       all directors at any time during such period, unless the election of any
       new or replacement directors was approved by a vote of at least a
       majority of the members of the Board in office immediately prior to such
       period and of the new and replacement directors so approved.
       Notwithstanding anything to the contrary in this Section 7.2, no Option
       will become exercisable by virtue of the occurrence of a Change in
       Control if the Option Holder of that Option or any group of which that
       Option Holder is a member is the person whose acquisition constituted the
       Change in Control.

    (c) NOT PUBLICLY TRADED. If the Stock is not Publicly Traded, a "Change in
       Control" is defined as (i) the sale of stock having 50% or more of the
       voting control or economic value of the Company, or (ii) merger of the
       Company with another entity pursuant to which Shares of Stock are
       surrendered in exchange for other stock of another entity or
       (iii) 50 percent or more of the capital stock of the Company is acquired
       without the consent of a majority of the members of the Board who are
       unaffiliated with the acquiror. Upon a Change in Control, the Options
       will, if the Company so chooses, be acquired by the Company immediately
       for the same value per Share as established in the Change in Control. In
       the case of a merger where the Company is not the surviving entity, the
       Company may require the outstanding Options to be exchanged for new
       options.

    (d) CHANGE IN CONTROL OF UPC. A "Change in Control" shall occur for purposes
       of this Plan if there is a change in control of UPC, as defined in the
       UPC 1998 Phantom Stock Option Plan, and, following the Change in Control
       of UPC, the Option Holder's employment is terminated for Good Reason. For
       purposes of this Plan, "Good Reason" shall mean:

       (i) the assignment to the Option Holder of any duties inconsistent in any
           respect with the Option Holder's position (including status, offices,
           and titles), authority, duties or responsibilities, or any other
           action by the Company that results in a diminution in such position,
           authority, duties or responsibilities, excluding for this purpose an
           isolated, insubstantial and inadvertent action not taken in bad faith
           and that is remedied by the Company promptly after receipt of notice
           thereof given by the Option Holder;

       (ii) any failure by the Company to comply with any of the provisions of
           any employment agreement between the Option Holder and the Company,
           other than an isolated, insubstantial and inadvertent failure not
           occurring in bad faith and that is remedied by the Company promptly
           after receipt of notice thereof given by the Option Holder;

       (iii) any purported termination by the Company of the Option Holder's
           employment otherwise than as expressly permitted by any employment
           agreement between the Option Holder and the Company; or

       (iv) any failure by UPC to require any successor (whether direct or
           indirect, by purchase, merger, consolidation or otherwise) to all or
           substantially all of the business and/or assets of UPC to assume
           expressly and agree to perform any employment agreement between the
           Option Holder and UPC in the same manner and to the same extent that
           UPC would be required to perform it if not such succession had taken
           place.

    7.3 PAYMENT FOR OUTSTANDING OPTIONS. Upon the occurrence of the events
described in Section 7.1 or 7.2, each outstanding Option shall be deemed to be
exercised on the date of the occurrence. Chello shall deliver to each Option
Holder an amount equal to the excess of the Fair Market Value of the Stock on
the date of the occurrence over the Option Price. All payments shall be subject
to the

                                       7
<PAGE>
withholding of applicable federal, state, and local taxes. Payment shall be
made, as the Company determines in its sole discretion, in (i) cash,
(ii) freely tradable shares of Class A Common Stock of UIH or of common stock of
UPC, which shall be valued at the closing price on the day before the date the
Company makes payment to the Option Holder, or (iii) if the Stock is Publicly
Traded, freely tradable shares of Stock. Upon payment for the outstanding
Options, all outstanding Options shall automatically terminate and be of no
further force or effect whatever without the necessity for any additional notice
or other action by the Board of Chello. For this purpose, the date of the
occurrence shall be as follows:

    (a) In the case of a merger or consolidation of the Company, or the sale or
       conveyance of the property of the Company as an entirety or substantially
       as an entirety, the date of the closing of the transaction.

    (b) In the case of the liquidation or dissolution of the Company, the date
       on which the Board adopts resolutions to dissolve or liquidate the
       Company.

    (c) In the case of a change in ownership of the Company's stock under
       Section 7.2, the date on which the last shares that cause the Change in
       Control are purchased.

    (d) In the case of a change in the membership of the Board, the date of the
       shareholders meeting at which the new directors were elected.

                                  ARTICLE VIII
                      SPECIAL RULES FOR VALUATION OF STOCK

    If the Stock is not Publicly Traded, Fair Market Value shall be determined
by the Board in good faith. For this purpose, Fair Market Value is the price at
which a willing seller, under no obligation to sell, would sell and the price at
which a willing buyer, under no obligation to buy, would buy.

    (a) The value of Chello shall be established by a significant transaction
       (I.E., sale of stock, merger, or other transaction that would establish a
       fair market value for Chello) if such a transaction has occurred within
       three months prior to the date as of which Fair Market Value is
       established.

    (b) If section (a) is not applicable, it is contemplated that Fair Market
       Value will be determined according to the formula (x) minus (y), with
       such modifications as the Board in good faith deems appropriate to
       reflect accurately current market conditions, provided however, the
       methodology used to determine fair market value shall be consistent with
       the methodology used to establish the initial exercise price of Options
       granted under the Plan, where:

       (x) is equal to ten times the trailing twelve months EBITDA (earnings
           before interest, taxes, depreciation, and amortization) of each
           operating company less the net liabilities of each operating company,
           multiplied by Chello's ownership percentage in the operating company;
           provided that the Board shall have the discretion to vary the
           multiplier; however, it is expected that the multiplier shall not be
           less than eight or more than twelve; and

       (y) is equal to the net liabilities of Chello (excluding any liabilities
           of the operating companies that were included in the calculation of
           (x)).

    (c) The following provisions will apply as appropriate to the fair market
       value calculation set forth in section (b) above.

       (i) "Net liabilities" equal total long-term liabilities, less net-working
           capital surplus, or plus net working capital deficit of the entity.

                                       8
<PAGE>
       (ii) With respect to any fair market valuation determined in accordance
           with section (b) above, the value of any operating company will be
           the value established by a transaction involving such operating
           company as described in section (a) above.

       (iii) For any operating company which has been in operation for less than
           36 months at the time of the valuation, or in the event that the
           Board believes that the methodology used in section (b) does not
           fairly reflect the value of any operating company, then a
           professional advisor or qualified appraiser may be engaged to
           determine the value of such operating company by employing standard
           and customary methodologies, which may include a discounted cash flow
           analysis.

       (iv) Fair Market Value will be determined no more frequently than once
           every six months, and the most recent prior valuation shall be deemed
           to be the Fair Market Value. If there has been an event which in the
           opinion of the Board is likely to have a material effect on the Fair
           Market Value, then a new valuation may be carried out.

                                   ARTICLE IX
                          EMPLOYMENT; TRANSFERABILITY

    9.1 EMPLOYMENT. 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 employment by, or consulting relationship with, the Company,
or interfere in any way with the right of the Company, subject to the terms of
any separate employment agreement or other contract to the contrary, at any time
to terminate such services 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 a termination of service shall be determined by the
Committee at the time.

    9.2 OTHER EMPLOYEE BENEFITS. The amount of any compensation received or
deemed to be received by an Option Holder as a result of the exercise of an
Option shall not constitute "earnings" or "compensation" with respect to which
any other employee benefits of such employee are determined, including without
limitation benefits under any pension, profit sharing, 401(k), life insurance or
salary continuation plan.

    9.3 NONTRANSFERABILITY. No right or interest of any Option Holder in an
Option granted pursuant to the Plan, shall be assignable or transferable during
the lifetime of the Option Holder, either voluntarily or involuntarily, or
subjected to any lien, directly or indirectly, by operation of law, or
otherwise, including execution, levy, garnishment, attachment, pledge or
bankruptcy. In the event of an Option Holder's death, an Option Holder's rights
and interests in Options shall, to the extent provided in Article VI be
transferable by will or the laws of descent and distribution.

                                   ARTICLE X
                                 MISCELLANEOUS

    10.1 EXPIRATION. The Plan shall terminate whenever the Board adopts a
resolution to that effect. If not sooner terminated by the Board, the Plan shall
terminate and expire on June 1, 2003. After termination, no additional Options
shall be granted under the Plan, but the Company shall continue to recognize
Options previously granted.

    10.2 AMENDMENTS, ETC. The Board may from time to time amend, modify, suspend
or terminate the Plan. Nevertheless, no such amendment, modification, suspension
or termination shall, without the consent of the Option Holder, alter a material
term of any Option previously granted under the Plan.

                                       9
<PAGE>
    10.3 SECTION HEADINGS. The section headings are included herein only for
convenience, and they shall have no effect on the interpretation of the Plan.

    10.4 SEVERABILITY. If any article, section, subsection or specific provision
is found to be illegal or invalid for any reason, such illegality or invalidity
shall not affect the remaining provisions of the Plan, and the Plan shall be
construed and enforced as if such illegal and invalid provision had never been
set forth in the Plan.

Dated: To be effective June 19, 1998.

                                       10

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