Document:

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                                REUTERS GROUP PLC
                        ANNUAL BONUS PROFIT SHARING PLAN

                  FOR PARTICIPANTS EMPLOYED BY NON-UK COMPANIES

                        _________________________________

                      Adopted by the Board on 22 April 2004

                            SHEARMAN & STERLING LLP

                             [LOGO][GRAPHIC OMITTED]

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                                TABLE OF CONTENTS

                                                                            PAGE

1.  DEFINITIONS................................................................1

2.  GRANT OF AWARDS............................................................3

3.  NUMBER OF SHARES IN RESPECT OF WHICH AWARDS MAY BE GRANTED.................4

4.  RELEASE OF AWARDS..........................................................5

5.  LAPSE OF AWARDS AND CESSATION OF EMPLOYMENT................................5

6.  GENERAL OFFER FOR THE COMPANY ETC..........................................7

7.  ADJUSTMENTS OF AWARDS......................................................8

8.  TAXATION AND SOCIAL SECURITY CONTRIBUTIONS.................................8

9.  AMENDMENT AND ADMINISTRATION...............................................9

10. GENERAL...................................................................10

11. DATA PROTECTION...........................................................11

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REUTERS GROUP PLC ANNUAL BONUS PROFIT SHARING PLAN FOR PARTICIPANTS EMPLOYED BY
NON-UK COMPANIES

1.   DEFINITIONS

1.1  In this Plan, unless the context otherwise requires, the following words
     and expressions have the following meanings, namely:

     ADS means American Depositary Shares, evidenced by American Depositary
     Receipts, each ADS representing six Shares;

     Adoption Date means the date of adoption of the Plan by the Board;

     Award means an award granted in the form referred to in rule 2.1 and
     Awarded shall be construed accordingly;

     Award Letter means the notification to a Participant by the Grantor setting
     out the specific conditions of an Award;

     Basic Salary means an Eligible Employee's annual basic salary in respect of
     his employment with the Group;

     Board means the board of directors of the Company or where appropriate a
     duly authorised committee thereof;

     Capital Reorganisation means any variation in the share capital or reserves
     of the Company (including, without limitation by way of capitalisation
     issue, rights issue, sub-division, consolidation or reduction);

     Cash Sub-Plan means the sub-plan to the Plan attached to these rules under
     which benefits are delivered in the form of cash;

     Company means Reuters Group PLC registered in England and Wales No.
     03296375 by whatever name from time to time;

     Control has the meaning given by section 840 of the Taxes Act;

     Date of Grant means the date on which the Grantor makes an Award;

     Discretionary Share Plan means an Employees' Share Scheme in which
     participation is solely discretionary;

     Eligible Employee means any bona fide employee of (or secondee from any
     member of the Group to) any non-UK tax resident member of the Group
     (excluding the executive directors of the Company and members of the Group
     Management Committee);

     Employees' Share Scheme has the meaning given by section 743 of the
     Companies Act 1985;

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     Grantor means the Trustee;

     Grant Period means the period of 42 days commencing on any of the
     following:

     (a)  The date of adoption of the Reuters Group PLC Annual Bonus Profit
          Sharing Plan;

     (b)  the day immediately following the day on which the Company makes an
          announcement of its results for the last preceding year, half year or
          other period; or

     (c)  any day on which the Board resolves that exceptional circumstances
          exist that justify the grant of Awards;

     Group means the Company and its Subsidiaries and member of the Group shall
     be construed accordingly;

     Group Management Committee means the group management committee of the
     Group from time to time by whatever name called;

     the London Stock Exchange means the London Stock Exchange plc or any
     successor body to it;

     Market Value means in relation to a Share on any day:

     (a)  if and so long as the Shares are listed on the London Stock Exchange,
          the closing middle market quotation for such a Share on the Date of
          Grant (as derived from the Daily Official List of the London Stock
          Exchange); or

     (b)  subject to (a) above, its market value determined in accordance with
          Part VIII of the Taxation Chargeable Gains Act 1992;

     Official List means the Official List of the UK Listing Authority;

     Participant means any individual to whom an Award has been granted under
     the Plan (including where the context permits, the legal personal
     representatives of a deceased Participant);

     Participating Company means any Subsidiary of the Company which is resident
     for tax purposes outside the UK;

     the Plan means this Reuters Group PLC Annual Bonus Profit Sharing Plan For
     Participants Employed by Non-UK Companies as amended from time to time;

     Plan Location means a territory in which persons are employed by one or
     more Participating Companies;

     Registered Holder means any person or persons nominated by the Grantor to
     hold Shares on behalf of a Participant;

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     Release means the transfer to a Participant of the Shares to which he is
     entitled under these rules (whether automatically or pursuant to a notice
     of release), and Release Date shall be construed accordingly;

     Restricted Period means unless foreshortened pursuant to rules 5 and 6 of
     this Plan, a period of one year commencing on the Date of Grant;

     Shares means fully paid and irredeemable ordinary shares in the capital of
     the Company or shares representing those shares following any Capital
     Reorganisation provided that such Shares (other than in the case of a
     distribution in specie or a Capital Reorganisation) may only be acquired by
     way of a subscription by the Trustees;

     Subsidiary has the meaning given by sections 736 and 736A of the Companies
     Act 1985;

     Taxes Act means the Income and Incorporation Taxes Act 1988;

     the Trustee means the trustee or trustees for the time being of any
     employee trust established by the Company from time to time for the benefit
     of (inter alia) employees of the Group and which is an employees' share
     scheme as defined in section 743 of the Companies Act 1985;

     UK Listing Authority means the Financial Services Authority acting in its
     capacity as the competent authority for the purposes of Part VI of the
     Financial Services and Markets Act 2000; and

     Vesting means the unconditional entitlement of a Participant to call for
     some or all of the Shares comprised in the Award pursuant to these rules,
     and Vest and Vesting Date shall be construed accordingly.

1.2  Where the context permits the singular shall include the plural and vice
     versa and the masculine shall include the feminine. Headings shall be
     ignored in construing the Plan.

1.3  References to any act of Parliament shall include any statutory
     modification, amendment or re-enactment thereof.

2.   GRANT OF AWARDS

2.1  The Grantor may, during a Grant Period, grant Awards in the form of a
     contingent right to acquire or receive Shares.

2.2  Subject to rule 3.4, the number of Shares that may be comprised in an Award
     granted to an Eligible Employee shall be determined by the Grantor (with
     the agreement of the Board).

2.3  No Awards shall be granted more than 10 years after the date of adoption of
     the Reuters Group PLC Annual Bonus Profit Sharing Plan.

2.4  There shall be no monetary consideration for the grant of any Award under
     the Plan.

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2.5  Each Award shall be made by an Award Letter issued by the Grantor and shall
     be subject to such terms and conditions consistent with the Plan as the
     Grantor may determine with the agreement of the Board. The Award Letter
     shall state:

     (a)  the Date of Grant;

     (b)  the number of Shares comprised in the Award; and

     (c)  the Restricted Period applying to the Award.

2.6  Absent express provisions, nothing in these rules or in an Eligible
     Employee's contract of employment shall be construed as giving to any
     Eligible Employee a right to receive, or be considered for, an Award.

2.7  The grant of any Award under the Plan shall be subject to the provisions of
     the Model Code for Securities Transactions by Directors of Listed Companies
     and to obtaining any approval or consent required under the provisions of
     the Listing Rules published by the UK Listing Authority or the City Code on
     Takeovers and Mergers or of any regulation or enactment applicable to such
     grant.

3.   NUMBER OF SHARES IN RESPECT OF WHICH AWARDS MAY BE GRANTED

3.1  No Award shall be granted to the extent that the result of that grant would
     be that the aggregate number of Shares that could be issued in respect of
     that Award and any other Awards granted at the same time, when added to the
     number of Shares that:

     (a)  could be issued in respect of any subsisting Awards or options granted
          during the preceding ten years under the Plan or any other Employees'
          Share Scheme established by the Company or any company under the
          Control of the Company; and

     (b)  have been issued in respect of any Awards or options granted during
          the preceding ten years under the Plan or any other Employees' Share
          Scheme established by the Company or any company under the Control of
          the Company,

          would exceed 10 per cent of the ordinary share capital of the Company
          for the time being in issue.

3.2  Reference in this rule 3 to the issue of Shares shall, for the avoidance of
     doubt, mean the issue and allotment (but not transfer) of Shares.

3.3  In determining the above limits no account shall be taken of any newly
     issued Shares where the right to acquire/purchase the Shares was released
     or lapsed.

3.4  An Award shall not be granted to an Eligible Employee if such grant would
     cause the total Market Value of the maximum number of Shares that may be
     acquired on Release of the Award (as measured at the Date of Grant of the
     Award) when aggregated with the total Market Value of the maximum number of
     Shares that may be acquired pursuant to any other Award granted to the
     Eligible Employee under the Plan in the previous 12 months, to exceed 5% of
     the Eligible Employee's Basic Salary

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     as at the Date of Grant or, if the Board considers that circumstances exist
     which justify a higher amount, such higher amount as the Board may in its
     absolute discretion determine up to and including an amount equal to 10% of
     his Basic Salary.

4.   RELEASE OF AWARDS

4.1  Save as otherwise permitted in these Rules and subject to rule 4.2, an
     Award shall not Vest and be capable of Release until the expiry of the
     Restricted Period.

4.2  Save as otherwise permitted in these Rules an Award shall not Vest and be
     capable of Release unless the Participant remains an employee of any member
     of that Group until the end of the Restricted Period.

4.3  Subject to any necessary consents and to compliance by the Participant with
     the terms of the Plan, the Grantor shall procure not later than 30 days
     after receipt of a valid notice of Release of an Award by a Participant or
     after any date on which an Award has Vested and become capable of Release,
     the delivery to the Participant (or to his nominee) of the Shares (which
     will have been subscribed by the Grantor) to which he is entitled free from
     any liens, charges or encumbrances. The Grantor shall (unless the Shares
     are to be issued in uncertified form) as soon as practicable deliver or
     procure the delivery to the Participant (or his nominee) of a definitive
     share certificate or other evidence of title in respect of such Shares.

4.4  Where the Release of an Award or the issue or transfer of Shares under the
     Plan would be prohibited by law or the Model Code for Securities
     Transactions by Directors of Listed Companies, the Award shall not be
     treated as having Vested and the period during which the Award may be
     Released and during which Shares may be issued or transferred shall not be
     treated as commencing until such period of prohibition no longer applies.

4.5  An Award shall be personal to the Participant and the Participant shall not
     sell, transfer, pledge, assign (or attempt to do so) or otherwise dispose
     of all or any Shares which are the subject of the Award or any interest
     therein until the Release Date. Any attempt by the Participant to sell,
     transfer, pledge, assign or otherwise dispose of such Shares or any
     interest in them shall result in the immediate lapse of the Award.

4.6  In relation to any Participant resident in the United States of America the
     Shares to which such Participant is entitled may, at the Participant's
     election, be delivered in the form of ADSs (rounded down in the case of any
     fractional ADSs to a whole number of ADSs).

4.7  On the Release of any Award under rule 5 or rule 6 below the Shares to
     which the Participant is entitled will, in the case of any fractional
     Shares, be rounded down to a whole number of Shares.

5.   LAPSE OF AWARDS AND CESSATION OF EMPLOYMENT

5.1  Save as otherwise provided in these rules, a Participant's Award shall
     lapse automatically on the earliest of:

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     (a)  the Participant being declared bankrupt or entering into any general
          composition with or for the benefit of his creditors, including a
          voluntary arrangement under the Insolvency Act 1986;

     (b)  the Participant ceasing to be an employee of a member of the Group at
          any time before the expiry of the specified Restricted Period (whether
          lawfully or unlawfully);

     (c)  any sale, transfer, pledge, assignment (or attempt to do so) or other
          disposal of the Shares which are the subject of the Award;

     (d)  the expiry of the later of the periods in rule 5.2 or rule 5.4;

     (e)  in the expiry of any applicable period under rule 6.

5.2  Where a Participant ceases to be an employee of a member of the Group prior
     to the expiry of the Restricted Period by reason of:

     (a)  injury, disability or ill-health;

     (b)  retirement at or after the date on which he is bound to retire under
          his contract of employment;

     (c)  early retirement (with the consent of the Board and the subsequent
          agreement of the Grantor);

     (d)  redundancy (within the meaning of the Employment Rights Act 1996);

     (e)  his employing company ceasing to be a member of the Group;

     (f)  the business (or part of the business) in which he is employed being
          transferred to a transferee which is not a member of the Group; or

     (g)  any other reason the Board (with the subsequent agreement of the
          Grantor) so decides,

     subject to any different terms specified in the Award Letter, the
     Participant's Award shall Vest and be capable of Release from the date on
     which the Participant's employment ceases and the Grantor shall procure the
     delivery of the Shares comprised in the Award to the Participant within 90
     days.

5.3  For the purpose of rule 5, a female Participant shall not be treated as
     ceasing to be an employee of a member of the Group if absent from work
     wholly or partly because of pregnancy or confinement, until she ceases to
     be entitled to exercise any statutory or contractual entitlement right to
     return to work.

5.4  If the Participant dies while in service or at any time after leaving
     service when he holds an Award, subject to any different terms specified in
     his Award Letter, the Shares comprised in his Award shall be capable of
     being Released by his legal personal representatives within twelve months
     of the date on which death occurred.

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6.   GENERAL OFFER FOR THE COMPANY ETC.

6.1  If any person (either alone or together with any person acting in concert
     with him) makes a general offer to acquire the whole of the share capital
     of the Company (other than those shares which are already owned by him
     and/or any person acting in concert with him), the Company shall, as soon
     as reasonably practicable thereafter, give notice to each Participant of
     such general or other offer and prior to the date on which the offer
     becomes or is declared unconditional in all respects. Subject to any
     different terms specified in the Award Letter, the Shares comprised in the
     Participant's Award shall be Released on the date on which the offer
     becomes or is declared unconditional and the Grantor shall procure the
     delivery of the Shares to the Participant within 30 days of the date on
     which the Change of Control occurs.

     Scheme of Arrangement

6.2  If a Court sanctions a compromise or scheme of arrangement under section
     425 of the Companies Act 1985 for the purposes of considering a scheme of
     arrangement involving the reconstruction of the Company, subject to any
     different terms specified in the Award Letter, the Shares comprised in the
     Participant's Award shall be Released on the date of court approval or
     sanction and the Grantor shall procure the delivery of the Shares to the
     Participant within 30 days of such date PROVIDED THAT other than in
     exceptional circumstances (as determined by the Board with the subsequent
     agreement of the Grantor) Shares shall not be Released under this Rule 6.2
     if the purpose and effect of the scheme of arrangement is to create a new
     holding company for the Company, such company having substantially the same
     shareholders and proportionate shareholdings as those of the Company
     immediately prior to the scheme of arrangement, the Board shall instead
     recommend that the provisions of Rule 6.3 should apply automatically.

6.3  If any person (the Acquiring Company) obtains Control of the Company as a
     result of any of the transactions described in Rules 6.1 or 6.2 above then,
     subject to the proviso to Rule 6.2 above, each Participant may by agreement
     with the Acquiring Company elect that his outstanding Awards should
     continue. On this basis, Participants' Awards (Old Awards) will become
     awards (New Awards) in respect of shares in the Acquiring Company. Each New
     Award will be equivalent to each Old Award before the change of Control.
     The New Awards will not be regarded as equivalent to the Old Awards unless:

     (a)  they are governed by the rules of the Plan in effect immediately
          before the release of the Old Awards; and

     (b)  the total Market Value of the Shares the subject of the Old Awards is
          equal to the total Market Value immediately after the release of the
          shares the subject of the New Awards. The provisions of the Plan will,
          for this purpose be construed as if the New Awards were granted under
          the Plan at the same time as the Old Awards.

     References to Shares will, in relation to the New Award, be taken as
     references to shares of the company whose shares are under New Awards.
     References to the Company shall be taken to be references to the company
     whose shares are under the New Awards, where appropriate.

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     Demerger

6.4  If the Board becomes aware that the Company is or is expected to be
     affected by any demerger, dividend in specie, super-dividend or other
     transaction which, in the opinion of the Board, would affect the current or
     future value of any Awards, subject to any different terms specified in the
     Award Letter, the Board (with the subsequent agreement of the Grantor) may
     determine that all or some of the Shares comprised in the Participant's
     Award shall be Released on a date determined by the Board (with the
     subsequent agreement of the Grantor) and the Grantor shall procure the
     delivery of such Shares to the Participant within 30 days of the Shares
     becoming capable of Release. If the Board determines (with the subsequent
     agreement of the Grantor) that Shares may be Released under this rule 6.4,
     it shall also determine whether the remaining Shares comprised in an Award
     shall lapse.

     Voluntary Winding-up

6.5  If notice is duly given of a resolution for a voluntary winding-up of the
     Company then subject to any different terms specified in the Award Letter,
     the Board may determine (with the subsequent agreement of the Grantor) that
     all or some of the Shares comprised in the Participant's Award shall be
     Released on a date determined by the Board (with the subsequent agreement
     of the Grantor) and the Grantor shall procure the delivery of such Shares
     to the Participant within 30 days of the Shares becoming capable of
     Release.

7.   ADJUSTMENTS OF AWARDS

7.1  In the event of any Capital Reorganisation or the implementation by the
     Company of a demerger or the payment by the Company of a dividend in specie
     or a super-dividend (which in the case of a demerger or payment of a
     dividend would materially affect the value of an Award), to the definition
     of Shares and the number of Shares comprised in an Award may be adjusted in
     such manner as the Board may determine (with the subsequent agreement of
     the Grantor) PROVIDED THAT in respect of an Award under which Shares are to
     be transferred, prior notification shall be given to the person holding the
     Shares to which the award relates.

8.   TAXATION AND SOCIAL SECURITY CONTRIBUTIONS

8.1  Any liability of a Participant to taxation arising in respect of any Award
     shall be for the account of the Participant. The grant of any Award shall
     be conditional on the Eligible Employee agreeing to comply with any
     arrangements specified by the Company or the Grantor for the payment of
     taxation and any social security contributions in respect of the Award
     (including without limitation the right of the Company or the Grantor to
     arrange the sale on his behalf of sufficient Shares to satisfy any taxation
     or social security liability on his part which the Company or any member of
     the Group might be liable to withhold) were the Participant to be
     subject to the maximum rates of taxation and/or social security at the
     material time and thereafter account to the relevant member of the Group
     with the net proceeds of sale for the Shares in order to enable the tax
     and/or social security liabilities to be settled and if following such
     sale, there shall be any balance of the proceeds of sale not required to
     meet such liabilities, such balance shall be paid

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     by the member of the Group to the participant for his own use and benefit
     absolutely.

8.2  To the extent legally possible, the Board may determine that the Release of
     an Award is conditional on the Participant entering into:

     (a)  an agreement to reimburse any member of the Group that employs the
          Participant in whole or in part for any employer social security
          contributions arising in connection with such Award; or

     (b)  an election with any member of the Group that employs the Participant
          to assume the liability for any Secondary Class 1 national insurance
          contributions, payable in connection with such an Award including an
          agreement or election under paragraph 3A or 3B of Schedule 1 to the
          Social Security Contributions and Benefits Act 1992.

9.   AMENDMENT AND ADMINISTRATION

9.1  The decision of the Board shall be final and binding in all matters
     relating to the Plan, subject to it obtaining the consent of the Grantor
     where specifically provided in these Rules. The Board (with the subsequent
     agreement of the Grantor) may take any actions it considers necessary or
     desirable to remedy any errors of a purely administrative nature made in
     connection with the operation of the Plan and may, at any time, discontinue
     the grant of further Awards.

9.2  The Board (with the subsequent agreement of the Grantor) may amend any of
     the provisions of the Plan in any way it thinks fit, provided that:

     (a)  no amendments can be made that would materially prejudice the
          interests of existing Participants except with the prior consent or
          sanction of Participants who, if their Awards vested in full, would
          thereby become entitled to not less than three-quarters of all the
          Shares which would fall to be allotted or transferred upon exercise in
          fully of all outstanding Awards; and

     (b)  no amendment to the advantage of Eligible Employees or Participants
          may be made to:

          (i)    the definition of Eligible Employee in rule 1.1;

          (ii)   the limitations on the numbers of Shares subject to the Plan;

          (iii)  the maximum entitlement of an Eligible Employee under the Plan;

          (iv)   the basis for determining an Eligible Employee's entitlement to
                 Shares under the Plan;

          (v)    the terms of Shares to be provided under the Plan;

          (vi)   the adjustment provisions of rule 7 of the Plan,

          without the prior approval of the Company in general meeting except in
          the case of minor amendments to benefit the administration of the
          Plan, to take

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          account of a change in legislation or to obtain or maintain favourable
          tax, exchange control or regulatory treatment for Eligible Employees
          and Participants or any member of the Group; and

     (c)  without prejudice to any provision of the Plan which provides for the
          lapse of an Award, the Grantor may not cancel an Award unless the
          Participant agrees in writing to such cancellation.

9.3  Notwithstanding any other provision of the Plan, the Board may establish
     appendices to the Plan for the purpose of granting Awards to Eligible
     Employees in a particular Plan Location who are or may become primarily
     liable to tax outside the United Kingdom on their remuneration, subject to
     such modifications as may be necessary or desirable to take account of
     overseas tax, exchange control or securities laws in such Plan Location
     provided that any Shares made available under such appendices shall count
     towards the limit set out in rule 3.

10.  GENERAL

10.1 Any member of the Group may provide money to the Trustees or any other
     person to enable them or him to acquire Shares to be held for the purposes
     of the Plan, or enter into any guarantee or indemnity for the purposes, to
     the extent not prohibited by section 151 of the Companies Act 1985.

10.2 The Plan shall terminate upon the tenth anniversary of the date of adoption
     of the Reuters Group PLC Annual Bonus Profit Sharing Plan or at any earlier
     time by the passing of a resolution by the Board. Termination of the Plan
     shall be without prejudice to the subsisting rights of Participants.

10.3 The rights and obligations of any individual under the terms of his office
     or employment with the Group shall not be affected by his participation in
     the Plan or any right he may have to participate in the Plan. An individual
     who participates in the Plan waives all and any rights to compensation or
     damages in consequence of the termination of his office or employment with
     any company for any reason whatsoever (whether lawfully or unlawfully),
     insofar as those rights arise or may arise from his ceasing to have rights
     under the Plan as a result of such termination, or from the loss or
     diminution in value of such rights or entitlements. In the event of any
     conflict between the terms of this rule 10.3 the Participant's terms of
     employment, this rule will take precedence.

10.4 The existence of any Award shall not affect in any way the right or power
     of the Company or its shareholders to make or authorise any or all
     adjustments, recapitalisations, reorganisations or other changes in the
     Company's capital structure, or any merger or consolidation of the Company,
     or any issue of Company shares, bonds, debentures, preferred or prior
     preference stocks ahead of, or convertible into, or otherwise affecting the
     Shares or the rights thereof, or the dissolution or liquidation of the
     Company or any sale or transfer of all or any part of its assets or
     business, or any other corporate act or proceeding, whether of a similar
     character or otherwise.

10.5 Any notice or other document required to be given under or in connection
     with the Plan may be delivered to a Participant or sent by post to him at
     his home address according to the records of his employing company or such
     other address as may

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     appear to the Grantor to be appropriate including any electronic address.
     Notices sent by post shall be deemed to have been given on the fourth
     business day following the date of posting and notices sent by electronic
     means shall be deemed to have been given twelve hours after the time of
     despatch or at such earlier time as receipt is acknowledged. Any notice or
     other document required to be given to the Company or the Grantor under or
     in connection with the Plan may be delivered or sent by post to it at its
     registered office (or such other place or places as the Company or the
     Grantor may from time to time determine and notify to Participant).

10.6 Benefits under the Plan shall not be pensionable.

10.7 The Company, or where the Board so directs any Participating Company, shall
     pay the appropriate stamp duty on behalf of Participants in respect of any
     transfer of Shares on the Release of Awards except where such liability
     arises as a result of the Participant's request to receive ADSs on Release
     unless the Board directs otherwise.

10.8 These Rules shall be governed by and construed in accordance with English
     law. All disputes arising out of or in connection with the rules shall be
     subject to the exclusive jurisdiction of the courts of England and Wales.

11.  DATA PROTECTION

     By participating in the Plan the Participant consents to the holding and
     processing of personal data provided by the Participant to the Company for
     all purposes relating to the operation of the Plan. These include, but are
     not limited to:

     (a)  administering and maintaining Participant records;

     (b)  providing information to trustees of any employee benefit trust,
          registrars, brokers savings carrier or other third party
          administrators of the Plan;

     (c)  providing information to future purchasers of the Company or the
          business in which the Participant works; and

     (d)  transferring information about the Participant to a country or
          territory outside the European Economic Area.

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THE REUTERS GROUP PLC ANNUAL BONUS PROFIT SHARING PLAN FOR PARTICIPANTS EMPLOYED
BY NON-UK COMPANIES - CASH SUB-PLAN

     1.   Words and phrases defined in the Plan shall bear the same meaning in
          this Cash Sub-Plan except as otherwise provided.

     2.   The rules of the Plan apply to this Cash Sub-Plan save as modified as
          follows:

          (a)  the Grantor may during a Grant Period, grant Awards in the form
               of a contingent right to receive cash not Shares;

          (b)  where Awards are granted as a contingent right to receive cash:

               (i)  all references to the Release of Shares will be taken as
                    references to the payment of a cash sum; and

               (ii) the cash sum payable will equal the Market Value of the
                    number of Shares which would otherwise have been comprised
                    in an Award;

          (c)  Rule 4.3 shall be replaced by the following: Subject to any
               necessary consents and to compliance by the Participant with the
               terms of the Plan, the Grantor shall procure not later than 30
               days after receipt of a valid notice of Release of an Award by a
               Participant or after any date on which an Award has Vested and
               become capable of Release, the delivery to the Participant (or to
               his nominee) of the cash (which will represent the proceeds from
               the sale of Shares subscribed by the Grantor) to which he is
               entitled free from any liens, charges or encumbrances.

                                       12<PAGE>
                                                                    Exhibit 10.1

(CAMBREX LOGO)

July 22, 2004

Mr. John R. Leone
225 Ravenscliff
St. Davids, PA 19087

Dear John:

I am pleased to confirm the details of our offer of employment as President &
Chief Executive Officer of Cambrex Corporation ("Cambrex" or the "Company"),
reporting to the Cambrex Corporation Board of Directors. This position will have
the authority and responsibility for managing and directing the Company's global
business, subject to the control and direction of the Board of Directors.
Concurrent with your commencement of employment as Chief Executive Officer
("commencement date" or "date of hire"), you will be elected to the Company's
Board of Directors. As compensation for your services as Chief Executive
Officer, your base salary will be $575,000 per year. Base salaries for
executives are normally reviewed on the executive's anniversary date each year
and are subject to approval by the Compensation Committee of the Cambrex Board
of Directors.

As a Cambrex senior executive you are entitled to receive a monthly automobile
allowance of $940 subject to future cost of living adjustments. A portion of
this automobile payment is likely to be deemed for personal use and will be
considered compensation for tax purposes. As an alternative to this automobile
allowance, the Company will provide you with either a company car and driver or
engage a limousine service to transport you from Pennsylvania to the office in
E. Rutherford, New Jersey, whichever is the most cost effective option. If you
decide to buy or rent an apartment or home in New Jersey within 35 miles of the
headquarters, the company will provide you with a housing allowance of up to
$5,000 per month to be offset by transportation expenses that would otherwise be
incurred. All of the alternatives may involve imputed taxable income.

In addition, you are eligible to participate in the Cambrex Performance
Improvement Plan (PIP) with a cash target award level of 75% of base salary, and
a restricted stock target award level of 37.5% of salary. Your target payout is
a guideline only, and your actual award will be based on performance against
agreed upon objectives for Cambrex and you individually, as approved annually by
the Board of Directors. Your actual cash bonus can go as high as a maximum of
150% of salary and your restricted stock award maximum as high as 75% of salary
and both may be as low as zero, if minimum goals for improving business
performance and/or meeting strategic objectives are not achieved.

Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073
Phone 201.804.3000  | Fax 201.804.9852 | www.cambrex.com
<PAGE>
Page 2
July 22,2004
Mr. John R. Leone

Award levels for achieving minimum levels of performance are equal to half of
your cash and restricted stock awards at target. Restricted stock awards granted
under the plan currently vest one third per year on the first, second and third
anniversaries from the date of grant and are not transferable until the third
anniversary from the date of grant. Restricted stock awards which are not vested
are forfeited upon separation from the Company. The design of the PIP plan is
subject to the approval and modification by the Compensation Committee. For 2004
the Company has agreed to give you a guaranteed PIP cash award of $350,000
payable within the first 45 days of 2005.

Subject to commencing your employment with the Company as Chief Executive
Officer, you shall be granted options to purchase 400,000 shares of Common Stock
of the Company, subject to the terms of the Company's Board of Director's
approved Stock Option Plan. The exercise price of these options will be equal to
the average of the high and low traded share price of a share of Cambrex Common
Stock as reported by the NYSE on the date the grant is approved by the Cambrex
Board of Directors. Your grant will be approved on your commencement date with
Cambrex. These options will become 25% vested and exercisable on each of the
first, second, third and fourth anniversaries of the grant date. In the event
you voluntarily resign from the Company or are terminated for Cause as defined
below, these options and any subsequent options granted but not vested at the
time of your termination will terminate as of that date. If your employment is
terminated other than for Cause or by you for Good Reason, as defined below, and
in the case of death or total disability, you will be entitled to exercise those
shares which are vested on the date of termination as well as fifty percent of
the remaining unvested shares. As discussed, the Compensation Committee is
reviewing the current Cambrex stock option/equity award program going forward in
light of the high probability that expensing stock awards will be mandated.
Currently the CEO position carries a three year stock option target or
equivalent valued plan using full valued shares (substituting fewer restricted
shares in lieu of stock options) for a total of 100,000 shares granted over a
three year period of time. It is expected that any new plan design approved by
the Compensation Committee will deliver equivalent value to you over the next
three years.

On your date of hire, the Company will grant you an amount of Cambrex restricted
common stock equal to the value of your "in the money" but unvested stock
options granted by your current employer that will terminate based on your
separation. (The number of shares under option and exercise prices are to be
confirmed to the Company via copies of your stock option agreements). The value
of your "in the money" but unvested stock options will be calculated using the
closing price of Aventis on your date of hire, based on the closing conversion
price of the Euro to the US dollar on that date.

Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073
Phone 201.804.3000  | Fax 201.804.9852 | www.cambrex.com
<PAGE>
Page 3
July 22, 2004
Mr. John R. Leone

In the event the transaction closes prior to the date of hire, we will use the
final value of the Sanofi offer for Aventis shares. The number of shares of
Cambrex stock will be determined by the average of the high and low traded share
price of a share of Cambrex Common Stock as reported by the NYSE on your date of
hire. (The number of Cambrex shares will be determined by dividing the
surrendered Aventis value by the Cambrex share price). These restricted shares
will vest one third per year commencing on the first, second, and third
anniversaries of your commencement date. These restricted shares are not
transferable until the third anniversary of your commencement date. In the event
you voluntarily resign from the Company or are terminated for Cause, there will
be no further vesting of these shares and you will be entitled to your vested
shares only, on the third anniversary of your date of commencement. If your
employment is terminated other than for Cause or by you for Good Reason, and in
the case of death or total disability these shares will continue to vest one
third per year on the first, second, and third anniversaries of your
commencement date.

On your date of hire, the Company will grant you $1.6 million worth of Cambrex
restricted common stock. The number of shares will be determined by the average
of the high and low traded share price of a share of Cambrex Common Stock as
reported by the NYSE on your date of hire. These restricted shares will vest
twenty five percent per year commencing on the first, second, third and fourth
anniversaries of your commencement date. These restricted shares are not
transferable until the fourth anniversary of your commencement date. In the
event you voluntarily resign from the Company or are terminated for Cause, there
will be no further vesting of these shares and you will be entitled to your
vested shares only, on the fourth anniversary of your commencement date. If your
employment is terminated other than for Cause by the Company or by you for Good
Reason, and in the case of death or total disability these shares will continue
to vest twenty five percent per year on the first, second, third and fourth
anniversaries of your commencement date.

As an officer of Cambrex, you will be covered by a "Change in Control Employment
Agreement", as outlined in Cambrex's Proxy Statement and the form of which has
been provided to you separately.

In the event that your employment with Cambrex is involuntarily terminated other
than for Cause (as defined in the Change of Control agreement in paragraph 5
(b)), you will be entitled to receive severance payments equal to your monthly
base salary plus your target bonus award, and continue all eligible employee
benefits, for a period of up to twenty-

Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073
Phone 201.804.3000  | Fax 201.804.9852 | www.cambrex.com
<PAGE>
Page 4
July 22, 2004
Mr. John R. Leone

four months or until you secure other comparable employment, whichever occurs
sooner. In the event that your employment is terminated by you for Good Reason
as defined as relocation of the principal place at which your duties are to be
performed to a location more than thirty-five miles from the current
headquarters in East Rutherford, New Jersey or there is a substantial reduction
in your responsibilities, authorities or functions from those which you were
assigned on your date of hire, or there is a substantial reduction in your base
salary or in your benefits which is not part of a general reduction of
substantially all of the officers compensation, then you will be entitled to
receive severance payments equal to your monthly base salary plus your target
bonus award, and continue all eligible employee benefits, for a period of up to
twenty four months or until you secure other comparable employment whichever
occurs sooner. There is no obligation for you to actively pursue employment
during the severance period, nor do you have any duty to mitigate any payments
or benefits Cambrex may be required to provide during the severance period.

You will be eligible to participate in benefits provided to Cambrex -US
employees, such as Health, Prescription Drug and Dental coverage, Basic Life
Insurance, Supplemental Life Insurance, Long Term Disability, the Cambrex
Savings Plan and the Cambrex Non-Qualified Deferred Compensation Plan. You will
be entitled to take up to 5 weeks of vacation per year.

Enclosed for your review is a copy of the Cambrex Summary of Employee Benefits.
The waiting period for the Cambrex Savings Plan is described in the Cambrex
Summary of Benefits.

John, your commencement of work with Cambrex is contingent upon satisfactory
completion of a pre-placement physical examination, background investigation,
and reference checks. Please fill out and sign the enclosed application form and
attachments to initiate the background check process.

On behalf of myself and the entire Cambrex Corporation Board of Directors, we
are looking forward to working with you and to substantially increasing the
value of the Company.

Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073
Phone 201.804.3000  | Fax 201.804.9852 | www.cambrex.com
<PAGE>
Page 5
July 22, 2004
Mr. John r. Leone

This offer will remain open until August 15,2004.

Sincerely,

/s/
James A. Mack
President, Chief Executive Officer and Chairman of the Board

Cc: Leon J. Hendrix, Jr., Chairman,
Governance Committee
John R. Miller, Chairman,
Compensation Committee
Steven M. KIosk, Executive Vice President

Please indicate your understanding and acceptance of this offer by signing below
and returning one copy of this letter to us in the enclosed envelope.

      /s/
--------------------------
     John R. Leone

Expected Start Date

  [August 23, 2004]
----------------------

Cambrex Corporation | One Meadowlands Plaza | East Rutherford, NJ 07073
Phone 201.804.3000  | Fax 201.804.9852 | www.cambrex.com

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