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<SEC-DOCUMENT>0000891836-03-000207.txt : 20030328
<SEC-HEADER>0000891836-03-000207.hdr.sgml : 20030328
<ACCEPTANCE-DATETIME>20030328154319
ACCESSION NUMBER:		0000891836-03-000207
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		5
FILED AS OF DATE:		20030328
EFFECTIVENESS DATE:		20030328

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KONINKLIJKE PHILIPS ELECTRONICS NV
		CENTRAL INDEX KEY:			0000313216
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP) [3600]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			P7
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		S-8
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-104104
		FILM NUMBER:		03625174

	BUSINESS ADDRESS:	
		STREET 1:		REMBRANDT TOWER AMSTELPLEIN 1
		STREET 2:		1096 HA AMSTERDAM
		CITY:			THE NETHERLANDS
		BUSINESS PHONE:		0113140791

	MAIL ADDRESS:	
		STREET 1:		REMBRANDT TOWER AMSTELPLEIN 1
		STREET 2:		1096 HA AMSTERDAM
		CITY:			THE NETHERLANDS

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHILIPS NV
		DATE OF NAME CHANGE:	19910903

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHILIPS ELECTRONICS N V
		DATE OF NAME CHANGE:	19930727
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>sc0113.htm
<DESCRIPTION>REGISTRATION STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>
FORM S-8
</TITLE>
</HEAD>
<BODY>

<CENTER><B>As filed with the Securities and Exchange Commission on March 28, 2003 </B></CENTER>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=100% ALIGN=RIGHT><B>Registration No. 333-_____</B></TD>
</TR>
</TABLE>

<HR SIZE=2 NOSHADE>
<CENTER>
<FONT SIZE="+1"><B>SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549</B> </FONT>
<HR SIZE=1 NOSHADE WIDTH=20%>
<FONT SIZE="+2"><B>FORM S-8</B> </FONT> <BR><BR>

<B>REGISTRATION STATEMENT<BR>
UNDER THE<BR>
SECURITIES ACT OF 1933
</B><BR><BR>

<FONT SIZE="+2"><B>Koninklijke Philips Electronics N.V.</B> </FONT> <BR>
<FONT SIZE="-1">(Exact Name of Registrant as Specified in Its Charter) </FONT> <BR><BR>

<FONT SIZE="+2"><B>Royal Philips Electronics</B> </FONT> <BR>
<FONT SIZE="-1">(Registrant&#146;s Name for Use in English) </FONT> <BR><BR>

<B>The Netherlands </B><BR>
<FONT SIZE="-1">(State or Other Jurisdiction of Incorporation or Organization) </FONT> <BR><BR>

<B>None </B><BR>
<FONT SIZE="-1">(I.R.S. Employer Identification Number) </FONT> <BR><BR>

<B>Breitner Tower, Amstelplein 2, 1096 BC Amsterdam, The Netherlands </B><BR>
<FONT SIZE="-1">(Address of Principal Executive Offices) </FONT> <BR><BR>

<B>Royal Philips Electronics Nonqualified Stock Purchase Plan<BR>
Royal Philips Electronics Corporate Stock Option Plan 2002<BR>
Royal Philips Electronics Long-Term Incentive Plan 2003 </B><BR>
<FONT SIZE="-1">(Full Title of the Plans) </FONT> <BR><BR>

<B>Belinda Chew<BR>
1251 Avenue of the Americas, New York, New York 10020-1104<BR>
(212) 536-0633 </B><BR>
<FONT SIZE="-1">(Name, Address and Telephone Number of Agent for Service) <BR><BR>

Please Send Copies of Communications to:</FONT><BR>
<B>Andrew D. Soussloff <BR>
Sullivan &amp; Cromwell LLP <BR>
125 Broad Street, New York, New York 10004-2498 <BR>
Telephone: (212) 558-4000 <BR>
Facsimile: (212) 558-3588 </B><BR><BR>

<PAGE>

<B>CALCULATION OF REGISTRATION FEE </B>
</CENTER>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=100%>
<TR VALIGN=BOTTOM>
     <TD WIDTH=24%><FONT SIZE="-1">
<B>Title of Each Class of<BR>
Securities to be Registered</B>
</FONT></TD>
     <TD WIDTH=19% ALIGN=CENTER><FONT SIZE="-1">
<B> Amount to be<BR>
Registered (2)</B>
</FONT></TD>
     <TD WIDTH=19% ALIGN=CENTER><FONT SIZE="-1">
<B>Proposed <BR>
Maximum Offering <BR>
Price Per Share (3)</B>
</FONT></TD>
     <TD WIDTH=19% ALIGN=CENTER><FONT SIZE="-1">
<B>Proposed <BR>
Maximum <BR>
Aggregate <BR>
Offering Price (3)</B>
 </FONT></TD>
     <TD WIDTH=19% ALIGN=CENTER><FONT SIZE="-1">
<B>Amount of<BR>
Registration<BR>
Fee</B>
</FONT></TD>
</TR>

<TR VALIGN=TOP>
     <TD WIDTH=24%><FONT SIZE="-1">
Common Shares of Koninklijke <BR>
Philips Electronics N.V., par<BR>
value 0.20 Euro per share (1)
</FONT></TD>
     <TD WIDTH=19% ALIGN=CENTER><FONT SIZE="-1">39,441,535 shares</FONT></TD>
     <TD WIDTH=19% ALIGN=CENTER><FONT SIZE="-1">$16.82</FONT></TD>
     <TD WIDTH=19% ALIGN=CENTER><FONT SIZE="-1">$663,406,619</FONT></TD>
     <TD WIDTH=19% ALIGN=CENTER><FONT SIZE="-1">$53,670</FONT></TD>
</TR>
</TABLE>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%><FONT SIZE="-1">(1) </FONT> </TD>
<TD ALIGN=LEFT WIDTH=3%>&nbsp; </TD>
<TD WIDTH=91%><FONT SIZE="-1">
In addition, pursuant to Rule&nbsp;416(c) under the Securities Act of 1933, this
registration statement also covers an indeterminate amount of interests to be
offered or sold pursuant to the Royal Philips Electronics Nonqualified Stock
Purchase Plan. Pursuant to Rule&nbsp;457(h)(2), no fee is payable with respect
to the registration of these interests.</FONT>
</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%><FONT SIZE="-1">(2) </FONT> </TD>
<TD ALIGN=LEFT WIDTH=3%>&nbsp; </TD>
<TD WIDTH=91%><FONT SIZE="-1">
2,500,000 of the shares are registered to be offered or sold pursuant to the
Royal Philips Electronics Nonqualified Stock Purchase Plan, 20,941,535 of the
shares are registered to be offered or sold pursuant to the Royal Philips
Electronics Corporate Stock Option Plan 2002 and 16,000,000 of the shares are
registered to be offered or sold pursuant to the Royal Philips Electronics
Long-Term Incentive Plan 2003. </FONT>
</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%><FONT SIZE="-1">(3) </FONT> </TD>
<TD ALIGN=LEFT WIDTH=3%>&nbsp; </TD>
<TD WIDTH=91%><FONT SIZE="-1">
Estimated solely for the purpose of computing the amount of the registration
fee. Pursuant to Rule&nbsp;457(h) and Rule&nbsp;457(c) under the Securities Act
of 1933, calculated on the basis of the average of the high and low prices of
the Common Shares as reported on the New York Stock Exchange on March&nbsp;24,
2003. </FONT>
</TD>
</TR>
</TABLE>
<BR>

<PAGE>

<CENTER><B>PART I </B></CENTER>
<HR SIZE=1 NOSHADE>

<P ALIGN=CENTER><B>INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</B> </P>

<P ALIGN=CENTER><U>EXPLANATORY NOTE</U> </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
registration statement on Form S-8 registers common shares, par value &#128;0.20 per share
of Royal Philips Electronics, which may be issued in connection with the plans set forth
on the facing page of this registration statement. In addition, this registration
statement also covers an indeterminate amount of interests to be offered or sold pursuant
to the Royal Philips Electronics Nonqualified Stock Purchase Plan. After giving effect to
this filing, an aggregate of 5,609,460 shares of the registrant&#146;s common stock have
been registered pursuant to the Royal Philips Electronics Nonqualified Stock Purchase
Plan. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
permitted by Rule 428 under the Securities Act of 1933, as amended, this registration
statement omits the information specified in Part I of Form S-8. We will deliver the
documents containing the information specified in Part I to the participants in the plans
covered by this registration statement as required by Rule 428(b). We are not filing these
documents with the Securities and Exchange Commission as part of this registration
statement or as prospectuses or prospectus supplements pursuant to Rule 424 of the
Securities Act of 1933, as amended. </P>

<PAGE>

<CENTER><B>PART II</B></CENTER>
<HR SIZE=1 NOSHADE>

<P ALIGN=CENTER><B>INFORMATION REQUIRED IN THE REGISTRATION STATEMENT </B></P>

<P><B>Item 3.&nbsp;&nbsp;&nbsp;&nbsp;Incorporation of Documents by Reference </B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Securities and Exchange Commission (the &#147;Commission&#148;) allows us to
&#147;incorporate by reference&#148; the information we file with them, which means that
we can disclose important information to you by referring you to those documents. The
information incorporated by reference is considered to be part of this registration
statement, and later information that we file with the Commission will automatically
update and supersede this information. Information set forth in this registration
statement supersedes any previously filed information that is incorporated by reference
into this registration statement. We incorporate by reference into this registration
statement the following documents: </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
Our Annual Report on Form 20-F for the fiscal year ended December 31, 2002 (File
No. 001-05146-01) filed with the Commission on March&nbsp;14, 2003. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
The description of our common shares, par value 0.20 euro per share, contained
in the registration statement on Form S-8 filed on June 13, 2000. </P>

<P>In addition, documents filed by Royal
Philips Electronics under sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange
Act of 1934 after the date of this registration statement, but prior to the filing of a
post-effective amendment which indicates that all securities offered hereby have been sold
or which deregisters all securities then remaining unsold are considered to be
incorporated by reference and part of this registration statement as from the date they
are filed. </P>

<P><B>Item 4.&nbsp;&nbsp;&nbsp;&nbsp;Description of Securities </B></P>

<P ALIGN=LEFT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.</P>

<P><B>Item 5.&nbsp;&nbsp;&nbsp;&nbsp;Interests of Named Experts and Counsel </B></P>

<P ALIGN=LEFT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable.</P>

<P><B>Item 6.&nbsp;&nbsp;&nbsp;&nbsp;Indemnification of Directors and Officers </B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
articles of association of Royal Philips Electronics contain no provisions under which any
member of its board of management or supervisory board or officers is indemnified in any
manner against any liability which he may incur in his capacity as such. However, article
36 of the articles of association of Royal Philips Electronics provides: &#147;Adoption by
the General Meeting of Shareholders of the annual accounts ... without any express
reservation made by the General Meeting of Shareholders shall have the effect of fully
discharging the Board of Management and the Supervisory Board from liability for
performance of their respective duties in the financial year concerned.&#148; </P>

<PAGE>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Netherlands&#146; law, this discharge is not absolute and would not be effective as to any
matters not disclosed in the annual accounts and the report of the board of management, as
presented to and adopted by the general meeting of shareholders. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Members
of the board of management, the supervisory board and certain officers of Royal Philips
Electronics are, to a limited extent, insured under an insurance policy against damages
resulting from their conduct when acting in their capacities as such. </P>

<P><B>Item 7.&nbsp;&nbsp;&nbsp;&nbsp;Exemption from Registration Claimed </B></P>

<P ALIGN=LEFT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable.</P>

<P><B>Item 8.&nbsp;&nbsp;&nbsp;&nbsp;Exhibits </B></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%><U>Exhibit No.</U></TD>
     <TD WIDTH=85%><U>Description</U> </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>4.1</TD>
     <TD WIDTH=85%>
Royal Philips Electronics Corporate Stock Option Plan 2002.</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>4.2</TD>
     <TD WIDTH=85%>
Royal Philips Electronics Global Restricted Share Rights Program 2003 (part of Royal
Philips Long-Term Incentive Plan 2003).</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>4.3</TD>
     <TD WIDTH=85%>
Royal Philips Electronics Global Stock Option Program 2003 (part of Royal Philips
Long-Term Incentive Plan 2003).
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>4.4</TD>
     <TD WIDTH=85%>
Royal Philips Electronics Nonqualified Stock Purchase Plan (incorporated herein by
reference to Exhibit 4.1. to Royal Philips Electronics&#146; registration statement on Form
S-8, as filed with the Commission on June 13, 2000).
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>23.1</TD>
     <TD WIDTH=85%>Consent of KPMG Accountants N.V.</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>24</TD>
     <TD WIDTH=85%>Power of attorney (included on signature page).</TD>
</TR>
</TABLE>
<BR>

<P><B>Item 9.&nbsp;&nbsp;&nbsp;&nbsp;Undertakings </B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;
          The undersigned registrant hereby undertakes: </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;
          To file, during any period in which offers or sales are being made, a
          post-effective amendment to this Registration Statement:</P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(i)&nbsp;&nbsp;&nbsp;&nbsp;
          To include any prospectus required by Section 10(a)(3) of the Securities Act of
          1933; </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(ii)&nbsp;&nbsp;&nbsp;&nbsp;
          To reflect in the prospectus any facts or events arising after the effective
          date of this Registration Statement (or the most recent post-effective amendment
          thereof) which, individually or in the aggregate, represent a fundamental change
          set forth in this Registration Statement; </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(iii)&nbsp;&nbsp;&nbsp;&nbsp;
          To include any material information with respect to the plan of distribution not
          previously disclosed in the registration statement or any material change to
          such information in the registration statement; </P>

<PAGE>

<P>provided, however, that paragraphs
1(i) and 1(ii) do not apply if the information required to be included in a post-effective
amendment by those paragraphs is contained in periodic reports filed with or furnished to
the Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange
Act that are incorporated by reference in this Registration Statement. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;
          That, for the purpose of determining any liability under the Securities Act of
          1933, as amended, each such post-effective amendment shall be deemed to be a new
          registration statement relating to the securities offered therein, and the
          offering of such securities at that time shall be deemed to be the initial bona
          fide offering thereof; and </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;
          To remove from registration by means of a post-effective amendment any of the
          securities being registered which remain unsold at the termination of the
          offering. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;
          The undersigned registrant hereby undertakes that, for purposes of determining
          any liability under the Securities Act of 1933, as amended, each filing of the
          registrant&#146;s annual report pursuant to Section 13(a) or Section 15(d) of
          the Securities Exchange Act of 1934 (and where applicable, each filing of an
          employee benefit plan&#146;s annual report pursuant to Section 15(d) of the
          Securities Exchange Act of 1934) that is incorporated by reference in the
          registration statement shall be deemed to be a new registration statement
          relating to the securities offered therein, and the offering of such securities
          at that time shall be deemed to be the initial <I>bona fide</I> offering
          thereof. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;
          Insofar as indemnification for liabilities arising under the Securities Act of
          1933, as amended, may be permitted to directors, officers and controlling
          persons of the registrant pursuant to the foregoing provisions, or otherwise,
          the registrant has been advised that in the opinion of the Securities and
          Exchange Commission such indemnification is against public policy as expressed
          in the Securities Act and is, therefore, unenforceable. In the event that a
          claim for indemnification against such liabilities (other than the payment by
          the registrant of expenses incurred or paid by a director, officer or
          controlling person of the registrant in the successful defense of any action,
          suit or proceeding) is asserted by such director, officer or controlling person
          in connection with the securities being registered, the registrant will, unless
          in the opinion of its counsel the matter has been settled by controlling
          precedent, submit to a court of appropriate jurisdiction the question whether
          such indemnification by it is against public policy as expressed in the Act and
          will be governed by the final adjudication of such issue. </P>

<PAGE>

<P ALIGN=CENTER><B>SIGNATURES OF ROYAL PHILIPS ELECTRONICS </B></P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, as amended, KONINKLIJKE PHILIPS
ELECTRONICS N.V. certifies that it has reasonable grounds to believe that it meets all of
the requirements for filing on Form S-8 and has duly caused this Registration Statement to
be signed on its behalf by the undersigned, thereunto duly authorized, in the City of
Amsterdam, The Netherlands, on March&nbsp;28, 2003 </P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 width=100%>
<TR valign=top>
     <TD WIDTH=50%>&nbsp;&nbsp;</TD>
     <TD COLSPAN=3>KONINKLIJKE PHILIPS ELECTRONICS N.V. <BR><BR><BR></TD>
</TR>
<TR valign=top>
     <TD WIDTH=50%>&nbsp;&nbsp; </TD>
     <TD WIDTH=5%>By:  </TD>
     <TD COLSPAN=2>/s/ Arie Westerlaken </TD>
</TR>
<TR valign=top>
     <TD WIDTH=50%>&nbsp;&nbsp; </TD>
     <TD WIDTH=5%>&nbsp;&nbsp; </TD>
     <TD COLSPAN=2><HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="LEFT"> </TD>
</TR>
<TR valign=top>
     <TD WIDTH=50%>&nbsp;&nbsp; </TD>
     <TD WIDTH=5%> &nbsp;&nbsp;</TD>
     <TD COLSPAN=2>
Name:&nbsp;&nbsp;Arie Westerlaken<BR>
Title:&nbsp;&nbsp;General Secretary
</TD>
</TR>
</TABLE>
<BR>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW
ALL MEN BY THESE PRESENTS that each individual whose signature appears below constitutes
and appoints Belinda Chew his true and lawful attorney-in-fact and agent with full power
of substitution, for him and in his name, place and stead, in any and all capacities, to
sign any and all amendments (including post-effective amendments) to this Registration
Statement, and to file the same with all exhibits thereto, and all documents in connection
therewith, with the Securities and Exchange Commission, granting unto said
attorney-in-fact and agent full power and authority to do and perform each and every act
and thing requisite and necessary to be done in and about the premises, as fully to all
intents and purposes as he might or could do in person, hereby ratifying and confirming
all that said attorney-in-fact and agent or his substitute or substitutes, may lawfully do
or cause to be done by virtue hereof. </P>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Act of 1933, as amended, this Registration Statement
has been signed by the following persons in the indicated capacities on March 28, 2003. </P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%><U>Name</U></TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=55%><U>Title</U></TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ G. J. Kleisterlee</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>President/CEO, Chairman of the Board of Management</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>G. J. Kleisterlee</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ J. H. M. Hommen</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Vice-Chairman of the Board of Management and Chief
Financial Officer</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>J. H. M. Hommen</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ A. P. M. van der Poel </TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Executive Vice-President, Member of the Board of Management</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>A. P. M. van der Poel </TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ G. H. Dutin&eacute;</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Executive Vice-President,
Member of the Board of Management</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>G. H. Dutin&eacute;</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER>II-1</P>

<PAGE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ A. Huijser</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Executive Vice-President, Member of the Board of
Management </TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>A. Huijser</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ L. C. van Wachem</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Chairman of the Supervisory Board </TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>L. C. van Wachem</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ W. de Kleuver</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Vice-Chairman and Secretary of the Supervisory Board </TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>W. de Kleuver</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>&nbsp;</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Member of the Supervisory Board</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>L. Schweitzer</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ Sir Richard Greenbury</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Member of the Supervisory Board </TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>Sir Richard Greenbury</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ J-M. Hessels</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Member of the Supervisory Board </TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>J-M. Hessels</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ K. A. L. M. van Miert</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Member of the Supervisory Board </TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>K. A. L. M. van Miert</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=40%>/s/ Belinda Chew</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD ROWSPAN=3>Duly authorized representative in the United States </TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%><HR SIZE=1 NOSHADE></TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
<TR VALIGN=TOP>
     <TD WIDTH=40%>Belinda Chew</TD>
     <TD WIDTH=5%>&nbsp;</TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER>II-2</P>

<PAGE>

<P ALIGN=CENTER><B>SIGNATURE OF THE KONINKLIJKE PHILIPS ELECTRONICS N.V.<BR>
NONQUALIFIED STOCK PURCHASE PLAN </B></P>

<P>Pursuant to the requirements of the
Securities Act of 1933, the trustees (or other persons who administer the employee benefit
plan) have duly caused this Registration Statement to be signed on its behalf by the
undersigned thereunto duly authorized in the City of New York, State of New York, on
March&nbsp;28, 2003. </P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 width=100%>
<TR valign=top>
     <TD WIDTH=50%>&nbsp;&nbsp;</TD>
     <TD COLSPAN=3>
ROYAL PHILIPS ELECTRONICS<BR>
NONQUALIFIED STOCK PURCHASE PLAN
 <BR><BR><BR></TD>
</TR>
<TR valign=top>
     <TD WIDTH=50%>&nbsp;&nbsp; </TD>
     <TD WIDTH=5%>By:  </TD>
     <TD COLSPAN=2>&nbsp;/s/ Kevin Doran</TD>
</TR>
<TR valign=top>
     <TD WIDTH=50%>&nbsp;&nbsp; </TD>
     <TD WIDTH=5%>&nbsp;&nbsp; </TD>
     <TD COLSPAN=2><HR NOSHADE SIZE="1" WIDTH="80%" ALIGN="LEFT"> </TD>
</TR>
<TR valign=top>
     <TD WIDTH=50%>&nbsp;&nbsp; </TD>
     <TD WIDTH=5%> &nbsp;&nbsp;</TD>
     <TD WIDTH=8%>

Name:<BR>
Title:
</TD>
     <TD WIDTH=37%>
Kevin Doran<BR>
Chairman, Stock Purchase Plan Committee
</TD>
</TR>
</TABLE>
<BR>


<P>&nbsp;</P>
<P>&nbsp;</P>

<P ALIGN=CENTER>II-3</P>

<PAGE>

<P ALIGN=CENTER>INDEX TO EXHIBITS </P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%><U>Exhibit No.</U></TD>
     <TD WIDTH=85%><U>Description</U> </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>4.1</TD>
     <TD WIDTH=85%>
Royal Philips Electronics Corporate Stock Option Plan 2002.</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>4.2</TD>
     <TD WIDTH=85%>
Royal Philips Electronics Global Restricted Share Rights Program 2003 (part of Royal
Philips Long-Term Incentive Plan 2003).</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>4.3</TD>
     <TD WIDTH=85%>
Royal Philips Electronics Global Stock Option Program 2003 (part of Royal Philips
Long-Term Incentive Plan 2003).
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>4.4</TD>
     <TD WIDTH=85%>
Royal Philips Electronics Nonqualified Stock Purchase Plan (incorporated herein by
reference to Exhibit 4.1. to Royal Philips Electronics&#146; registration statement on Form
S-8, as filed with the Commission on June 13, 2000).
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>23.1</TD>
     <TD WIDTH=85%>Consent of KPMG Accountants N.V.</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=15%>24</TD>
     <TD WIDTH=85%>Power of attorney (included on signature page).</TD>
</TR>
</TABLE>
<BR>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>3
<FILENAME>ex_4-1.htm
<DESCRIPTION>STOCK OPTION PLAN 2002
<TEXT>
<HTML>
<HEAD>
<TITLE>
Exhibit 4.1
</TITLE>
</HEAD>
<BODY>

<P ALIGN=RIGHT><B>Exhibit 4.1</B> </P>

<P ALIGN=CENTER><B>Royal Philips Electronics <BR>
Corporate Stock Option Plan 2002 </B></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>1.</TD>
     <TD WIDTH=95%><B>Purpose</B></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%> &nbsp; </TD>
<TD WIDTH=95%>
The
purpose of the Royal Philips Electronics Corporate Stock Option Plan 2002 (the
&#147;Plan&#148;) is to enhance the ability of Koninklijke Philips Electronics N.V. (for
use in English: Royal Philips Electronics) (the &#147;Company&#148;), and any
participating division, subsidiary or affiliate of the Company selected by the Board of
Management (a &#147;Division&#148;) to attract, motivate and retain members of the
Company&#146;s Group Management Committee, Philips Executives, certain excellently
performing top and high potentials and key-employees world-wide and to provide (new)
employees with an interest in the Company parallel to that of the Company&#146;s
shareholders. </TD>
</TR>
</TABLE>
<BR>

     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%>2. </TD>
          <TD WIDTH=95%><P ALIGN=LEFT>
          <B>Definitions</B> </P></TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(a)</TD>
     <TD WIDTH=90%>
&#147;Board of Management&#148; shall mean the Board of Management of the
Company which shall administer the Plan and perform the functions specified in
Section 3 hereof.
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(b)</TD>
     <TD WIDTH=90%>
&#147;Fair Market Value&#148; per share as of a particular date shall mean the
price of a Share with dividend in Euro, if any, at the closing of the Official
Segment of Euronext Amsterdam N.V.&#146;s stock market (&#147;Euronext
Amsterdam&#148;), reported on the relevant date as published in the Official
Price List of Euronext Amsterdam. The Supervisory Board or the Board of
Management, as the case may be, may determine the Fair Market Value in US
Dollars, using the rate of Euro/US Dollar exchange on Euronext Amsterdam at the
close of business on the relevant date. In the event that the Shares are not
traded on Euronext Amsterdam on the relevant date, the Fair Market Value shall
be determined by the Supervisory Board in its reasonable discretion.
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(c)</TD>
     <TD WIDTH=90%>
          &#147;Option&#148; shall mean a non-statutory option to purchase Shares.</TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(d)</TD>
     <TD WIDTH=90%>
          &#147;Option Period&#148; shall have the meaning set forth in Section 5(b) of
          the Plan. </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(e)</TD>
     <TD WIDTH=90%>
          &#147;Participant&#148; shall mean a person selected to participate in the Plan
          in accordance with Section 4.</TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(f)</TD>
     <TD WIDTH=90%>
          &#147;Shares&#148; shall mean the common shares of the Company.</TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(g)</TD>
     <TD WIDTH=90%>
          &#147;Supervisory Board&#148; shall mean the Supervisory Board of the Company
          which shall administer the Plan and perform the functions specified in Section 3
          hereof. </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>3.</TD>
<TD WIDTH=95%> <B>Administration</B> </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
The
Plan shall be administered by the Supervisory Board or the Board of Management, as the
case may be, or such other person or persons designated by the Supervisory Board or the
Board of Management, subject to the provisions below. </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(a)</TD>
     <TD WIDTH=90%>
          The Supervisory Board or the Board of Management, as the case may be, shall (i)
          approve the selection of Participants, (ii) determine the number of Shares
          subject </TD>
          </TR>
          </TABLE>
          <BR>

<P ALIGN=CENTER>1</P>

<PAGE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=90%>
          to Options, up to an aggregate number not exceeding the number of Shares
          approved for the Plan from time to time by the Company&#146;s Board of
          Management, Supervisory Board and meeting of its priority shareholders, and not
          previously issued or delivered upon the exercise of Options or subject to
          unexercised outstanding Options, (iii) determine the terms and conditions of any
          Option granted hereunder (including, but not limited to, any restriction and
          forfeiture conditions on such Option) and (iv) have the authority to interpret
          the Plan, to establish, amend, and rescind any rules and regulations relating to
          the Plan, to determine the terms and provisions of any agreements entered into
          hereunder, and to make all other determinations necessary or advisable for the
          administration of the Plan; provided, however, that the Supervisory Board shall
          be solely responsible for the selection of Participants who are members of the
          Company&#146;s Board of Management or the Group Management Committee, and the
          number of, and terms and conditions applicable to, Options granted to such
          members under the Plan. The Supervisory Board or the Board of Management, as the
          case may be, may correct any defect, supply any omission or reconcile any
          inconsistency in the Plan or in any Option in the manner and to the extent it
          shall deem desirable. </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(b)</TD>
     <TD WIDTH=90%>
          Any action of the Supervisory Board, the Board of Management or its designee
          shall be final, conclusive and binding on all persons, including the Company,
          Division and its shareholders, Participants and persons claiming rights from or
          through a Participant.</TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(c)</TD>
     <TD WIDTH=90%>
          The Supervisory Board or the Board of Management, as the case may be, may
          delegate to officers or employees of the Company or Division and to service
          providers, the authority, subject to such terms as the Supervisory Board or the
          Board of Management, as the case may be, shall determine, to perform
          administrative functions with respect to the Plan and Option agreements.</TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(d)</TD>
     <TD WIDTH=90%>
          Members of the Supervisory Board, the Board of Management and any officer or
          employee of the Company or Division acting at the direction of, or on behalf of,
          the Supervisory Board or the Board of Management shall not be personally liable
          for any action or determination taken or made in good faith with respect to the
          Plan, and shall, to the extent permitted by law, be fully indemnified by the
          Company with respect to any such action or determination. </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>4.</TD>
     <TD WIDTH=95%>
          <B>Eligibility</B> </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
Individuals
eligible to receive Options under the Plan shall be persons selected by the Supervisory
Board or the Board of Management. </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>5.</TD>
     <TD WIDTH=95%><B>Options</B></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
Options
may be granted under the Plan commencing as of the Effective Date and from time to time
thereafter in such form as the Supervisory Board or the Board of Management, as the case
may be, may from time to time approve pursuant to terms set forth in an Option agreement.
The Supervisory Board or the Board of Management, as the case may be, may alter or waive,
at any time, any term or condition of an Option that is not mandatory under the Plan. </TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER>2</P>

<PAGE>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(a)</TD>
     <TD WIDTH=90%>
          Exercise Price. The purchase price per Share purchasable pursuant to an Option
          shall be not less than 100% of the Fair Market Value of the Stock on the date of
          the grant of the Option specified in the Option agreement. </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(b)</TD>
     <TD WIDTH=90%>
          Option Period. The term of each Option shall be 10 years from the date the
          Option is granted (the &#147;Option Period&#148;). </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(c)</TD>
     <TD WIDTH=90%>
          Exercisability. In the sole discretion of the Supervisory Board or the Board of
          Management, as the case may be, Options granted under the Plan shall become
          exercisable as provided in the applicable terms and conditions of the Plan
          subject to Section 6.</TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(d)</TD>
     <TD WIDTH=90%>
          Method of Exercise. Options may be exercised, in whole or in part (subject to a
          minimum of 10 Shares), by giving written notice of exercise to the Company
          specifying the number of Shares to be purchased. Such notice shall be
          accompanied by the payment in full of the Exercise Price in accordance with any
          method set forth in the Option agreement. </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(e)</TD>
     <TD WIDTH=90%>
          In the event that an Option expires or is terminated without being exercised in
          full, including in cases of forfeiture, such Shares subject to such Option shall
          thereafter be again available for grant pursuant to the Plan. </TD>
          </TR>
          </TABLE>
          <BR>

     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%>6. </TD>
          <TD WIDTH=95%><P ALIGN=LEFT>
          <B>Forfeiture</B> </P></TD>
          </TR>
          </TABLE>
          <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
Options
shall be subject to termination and forfeiture as provided in the Option agreement
applicable to an Option. Notwithstanding anything in the Plan to the contrary, the
Supervisory Board or the Board of Management, as the case may be, may provide in any
Option agreement that in the event of termination for cause of an employee or former
employee (including, without limitation, any conduct prejudicial to or materially adverse
to the business of the Company or a Division) the Supervisory Board or the Board of
Management, as the case may be, may cancel any outstanding Option granted to such employee
or former employee, in whole or in part, whether or not vested. </TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
Such
cancellation shall be effective as of the date specified by the Supervisory Board or the
Board of Management. The determination of whether an employee or former employee has
engaged in a serious breach of conduct shall be determined by the Supervisory Board or the
Board of Management in good faith and in its sole discretion, and such determination shall
be binding and conclusive on the employee or former employee. </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>7.</TD>
     <TD WIDTH=95%><B>Withholding</B></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
The
Company shall have the right to cause to be deducted from any payment to be made the
amount of any taxes, social premiums or comparable insurance premiums required by law to
be withheld there from, or to require a Participant to pay to the Company in cash any
amount required to be withheld prior to the issuance or delivery of any Shares under the
Plan. </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>8.</TD>
     <TD WIDTH=95%><B>Non-transferability</B></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
No
Option shall be assignable or transferable by the Participant otherwise than by will or
the laws of descent and distribution, and Options shall be exercisable, during the
Participant&#146;s lifetime, only by the Participant (or by the Participant&#146;s legal
representatives). Any </TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER>3</P>

<PAGE>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
infringement of this principle will cause the Options to become null
and void, without the Option Holder being entitled to any compensation. </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>9.</TD>
     <TD WIDTH=95%><B>No Right to Employment</B> </TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
Nothing
contained in the Plan or in any Option under the Plan shall confer upon any employee any
right with respect to the continuation of employment with the Company or Division, or
interfere in any way with the right of the Company or Division to terminate such
employment at any time. Nothing contained in the Plan shall confer upon any employee or
other person any claim or right to any Option or Shares. </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>10. </TD>
     <TD WIDTH=95%><B>Governmental Compliance</B> </TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
Each
Option under the Plan shall be subject to the requirement that if at any time the
Supervisory Board or the Board of Management, as the case may be, shall determine that the
listing, registration or qualification of any Shares issuable or deliverable there under
upon any securities exchange or under any Federal, state or other law, or the consent or
approval of any governmental regulatory body, is necessary or desirable as a condition
thereof, or in connection therewith, no such Option may be exercised or Shares issued or
delivered unless such listing, registration, qualification, consent or approval shall have
been effected or obtained free of any conditions not acceptable to the Supervisory Board
or the Board of Management. </TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
In
the sole discretion of the Supervisory Board or the Board of Management, as the case may
be, the provisions of this Plan may be supplemented by provisions set forth in a Schedule
(or Schedules) to the Plan established in respect of a country or jurisdiction, to the
extent that it is necessary or desirable in order to comply with local law in such
jurisdiction or in order to obtain favorable tax, accounting or other treatment in such
jurisdiction. </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>11. </TD>
     <TD WIDTH=95%><B>Adjustments</B></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
In
the event of any change in the outstanding Shares by reason of any stock dividend or
split, recapitalization, merger, consolidation, spin-off, combination or exchange of
shares or other corporate change, or any distribution to holders of Shares other than
regular cash dividends, the number or kind of Shares available for Options under the Plan
may be adjusted by the Supervisory Board or the Board of Management as it shall in its
sole discretion deem equitable and the number and kind of Shares subject to any
outstanding Options granted under the Plan and the purchase price thereof may be adjusted
by the Supervisory Board or the Board of Management as it shall in its sole discretion
deem equitable to preserve the value of such Options. </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>12. </TD>
     <TD WIDTH=95%><B>Amendment</B></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
The
Supervisory Board or the Board of Management, as the case may be, may amend, modify,
suspend or terminate the Plan or any portion thereof (including Schedules) at any time,
provided that, except as provided in Section 11, no amendment shall be made which would
reduce the exercise price specified in the Plan. </TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER>4</P>

<PAGE>

     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%>13. </TD>
          <TD WIDTH=95%><P ALIGN=LEFT>
          <B>General Provisions</B> </P></TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(a)</TD>
     <TD WIDTH=90%>
          Except as otherwise provided by the Supervisory Board or the Board of Management
          in the applicable Option agreement, a Participant shall have no rights as a
          shareholder with respect to any Shares subject to Options until such Shares have
          been transferred appropriately to the Participant and, subject to Section 11, no
          adjustment shall be made for dividends or distributions or other rights in
          respect of any Share for which the record date is prior to the date on which
          Participant shall become the holder of record thereof. </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(b)</TD>
     <TD WIDTH=90%>
          The Plan and all agreements hereunder shall be governed by and construed in
          accordance with the laws of The Netherlands, subject to the terms of the
          applicable Option agreement, without regard to the principles of conflict of
          laws. </TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(c)</TD>
     <TD WIDTH=90%>
          Where the context requires, words in either gender shall include the other
          gender.</TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(d)</TD>
     <TD WIDTH=90%>
          The value of Options (or Shares purchased upon exercise of Options) under the
          Plan shall not be considered as compensation in determining a Participant&#146;s
          benefits under any benefit plan of the Company or a Division, including, but not
          limited to, group life insurance, long-term disability, family survivors, or any
          retirement, pension or savings plan.</TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=5%>(e)</TD>
     <TD WIDTH=90%>
          Any schedules to this Plan, which reflect more specific terms relating to
          Options, shall be considered a part of this Plan and are hereby incorporated
          into this Plan by reference. </TD>
          </TR>
          </TABLE>
          <BR>

     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
          <TR VALIGN=TOP>
          <TD WIDTH=5%>14. </TD>
          <TD WIDTH=95%><P ALIGN=LEFT>
          <B>Term of Plan</B> </P></TD>
          </TR>
          </TABLE>
          <BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>&nbsp;</TD>
     <TD WIDTH=95%>
Subject
to earlier termination pursuant to Section 12, the Plan shall have a term of 10 years from
the Effective Date.
</TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%>15. </TD>
     <TD WIDTH=95%><B>Effective Date</B> </TD>
</TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=5%></TD>
     <TD WIDTH=95%>
The
Plan shall be effective as of 7 February 2002 (the &#147;Effective Date&#148;).
</TD>
</TR>
</TABLE>
<BR><BR><BR><BR>


<P ALIGN=CENTER>5</P>



</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>4
<FILENAME>ex_4-2.htm
<DESCRIPTION>SHARE RIGHTS PROGRAM 2003
<TEXT>
<HTML>
<HEAD>
<TITLE>
Exhibit 4.2
</TITLE>
</HEAD>
<BODY>

<P ALIGN=RIGHT><B>Exhibit 4.2</B> </P>

<P ALIGN=CENTER><B>TERMS AND CONDITIONS <BR>
OF <BR>
GLOBAL PHILIPS RESTRICTED SHARE RIGHTS PROGRAM 2003 </B><BR>
Grants April 2003, July 2003, October 2003 and February 2004 </P>

<P ALIGN=CENTER>Article 1
Definitions </P>

<P>In this Global Philips Restricted
Share Program 2003 the following definitions shall apply: </P>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>1. </TD>
               <TD WIDTH=30%>Custody Account:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               a custody account maintained in the name of a Participant
               other than a Nominee Account. </TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>2. </TD>
               <TD WIDTH=30%>Date of Grant: </TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               the date at which a Restricted Share Right is granted pursuant
               to this Program.</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>3. </TD>
               <TD WIDTH=30%>Delivery Date:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               &#150; in respect of 1 Year Term Restricted Share Rights:
               [..&#133;.., 2004];</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>&nbsp;</TD>
               <TD WIDTH=30%>&nbsp;</TD>
               <TD WIDTH=3%>&nbsp;</TD>
               <TD WIDTH=62%>
&#150; in respect of 2 Year Term Restricted Share Rights: [&#133;&#133;, 2005];
</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>&nbsp;</TD>
               <TD WIDTH=30%>&nbsp;</TD>
               <TD WIDTH=3%>&nbsp;</TD>
               <TD WIDTH=62%>
&#150; in respect of 3 Year Term Restricted Share Rights: [......, 2006].
</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>4. </TD>
               <TD WIDTH=30%>Employing Company:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               any company within the Philips group of companies and such
               other company as Philips may from time to time designate or approve.</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>5. </TD>
               <TD WIDTH=30%>Nominee Account:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               a custody account maintained in the name of a Participant
               established by an administrator designated by Philips.</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>6. </TD>
               <TD WIDTH=30%>Premium Date:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               the date which is three years after the applicable Delivery Date.</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>7. </TD>
               <TD WIDTH=30%>Premium Shares:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               any Shares (to be) delivered to a Participant pursuant to
               Article 7 hereof.</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>8. </TD>
               <TD WIDTH=30%>Retainment Period:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               the period commencing on the Delivery Date applicable to a
               particular Restricted Share Right until the Premium Date applicable to such
               Restricted Share Right. </TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>9. </TD>
               <TD WIDTH=30%>Participant:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               an individual who has accepted any Restricted Share Rights under
               this Program.</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>10. </TD>
               <TD WIDTH=30%>Philips:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               Koninklijke Philips Electronics N.V.
</TD>
               </TR>
               </TABLE>
               <BR>


          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>11. </TD>
               <TD WIDTH=30%>Program:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
this Global Philips Restricted Share Program 2003.
</TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER>1</P>

<PAGE>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>12. </TD>
               <TD WIDTH=30%>Restricted Share Right:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
the conditional
               right granted to a Participant to receive one Share subject to the terms of this
               Program. Restricted Share Rights will be categorized as &#147;1 Year Term
               Restricted Share Rights&#148;, &#147;2 Year Term Restricted Share Rights&#148;
               or &#147;3 Year Term Restricted Share Rights&#148;, as applicable.
</TD>
               </TR>
               </TABLE>
               <BR>

          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD  WIDTH=5%>13. </TD>
               <TD WIDTH=30%>Share:</TD>
               <TD WIDTH=3%></TD>
               <TD WIDTH=62%>
               a common share of Philips (to be) delivered under this Program. </TD>
               </TR>
               </TABLE>
               <BR><BR>

<P ALIGN=CENTER><B>Article 2 <BR>
Grant of Restricted Share Rights </B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
Any
Restricted Share Rights may be granted to an eligible individual, subject to the
(acceptance by such individual of the) terms and conditions of this Program. Any
Restricted Share Rights offered to any such individual and the terms and conditions
governing such rights shall be deemed accepted by such individual with effect from the
applicable Date of Grant in case Philips has not received, in accordance with a procedure
established by Philips, a notice of rejection of such rights within fourteen (14) days of
the notice of grant of such rights or such later date as may be determined by Philips. </TD>
</TR>
</TABLE>
<BR><BR>

<P ALIGN=CENTER><B>Article 3 <BR>
Termination of Employment </B></P>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>1. </TD>
                    <TD WIDTH=95%>
                    Except as provided in Article 3.2 and 3.3 hereof, in case a Participant is no
                    longer employed by any Employing Company as a result of the termination of such
                    Participant&#146;s employment with an Employing Company for any reason
                    whatsoever prior to the applicable Delivery Date, such Participant&#146;s
                    Restricted Share Rights shall be forfeited effective as of the date of
                    termination of such Participant&#146;s employment with the Employing Company
                    without the Participant being entitled to any compensation or any obligation on
                    the part of Philips or any of its subsidiaries unless Philips determines, in its
                    sole discretion, otherwise in writing. Any such determination shall be final,
                    conclusive and binding and may be subject to such conditions as Philips may
                    determine appropriate. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>2. </TD>
                    <TD WIDTH=95%>
                    In case a Participant is no longer employed by any Employing Company as a result
                    of the termination of such Participant&#146;s employment with an Employing
                    Company for reasons of (i) death, (ii) disablement, (iii) legal incapacity, (iv)
                    retirement -including, but not limited to, early retirement- (retirement or
                    early retirement to be defined as termination of service with eligibility for an
                    immediate retirement benefit under a retirement plan of an Employing Company
                    under which such Participant was covered, provided payment of such retirement
                    benefit begins immediately following such termination), or (v) the expiration of
                    a temporary contract of employment, provided such temporary contract of
                    employment has not been extended one or more times, such Participant or, in case
                    of the death or legal incapacity of the Participant, the estate of the
                    Participant or his or her legal representative(s), as the case may be, shall
                    remain entitled to any Restricted Share Rights granted to such Participant prior
                    to the date of such termination subject to, and in accordance with, the terms
                    and conditions of this Program. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>3. </TD>
                    <TD WIDTH=95%>
                    In case a Participant is no longer employed by any Employing Company as a result
                    of the sale or other divestment of a business, subsidiary, division or other
                    business unit of </TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER>2</P>

<PAGE>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>&nbsp;</TD>
                    <TD WIDTH=95%>
                    Philips or any part thereof (&#147;Divested Business&#148;),
                    such Participant shall remain entitled to any Restricted Share Rights granted to
                    such Participant prior to the date of the termination of such employment subject
                    to, and in accordance with, the terms and conditions of this Program, provided
                    that such Restricted Share Rights will be forfeited as of the date of
                    termination of the Participant&#146;s employment with the company which acquired
                    the Divested Business from Philips or any of its subsidiaries, without the
                    Participant being entitled to any compensation or any obligation on the part of
                    Philips or its subsidiaries or the transferee or its subsidiaries. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER><B>Article 4 <BR>
Non-transferability </B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
The
Restricted Share Rights are strictly personal and may not be assigned, transferred (except
by the will or the laws of descent and distribution), pledged, hypothecated, or otherwise
encumbered or disposed of in any manner. The Participant may not engage in any
transactions on any exchange on the basis of any Restricted Shares Rights. Any violation
of the terms of this Article&nbsp;4 will cause the Restricted Share Rights to become
immediately null and void without further notice and without the Participant being
entitled to any compensation. </TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER><B>Article 5 <BR>
Delivery and Holding of Shares </B></P>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>1. </TD>
                    <TD WIDTH=95%>
                    Philips may require a Participant to maintain a Nominee Account in connection
                    with this Program. Nothing contained in this Program shall obligate Philips to
                    establish or maintain or cause to establish or maintain a Nominee Account for
                    any Participant. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>2. </TD>
                    <TD WIDTH=95%>
                    Subject to the terms of this Program, Philips will deliver a Share to a
                    Participant on or as soon as reasonably practicable after the relevant Delivery
                    Date. In no event shall Philips have any obligation to deliver any Shares to a
                    Participant prior to the relevant Delivery Date. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>3. </TD>
                    <TD WIDTH=95%>
                    Any Shares to be delivered pursuant to Article 5.2 will be credited to the
                    Nominee Account except if a Participant (i) requests Philips to credit such
                    Shares to a Custody Account or (ii) does not maintain a Nominee Account at the
                    date of delivery of such Shares. In case (i) or (ii) as described in the
                    foregoing sentence applies, the Participant shall be responsible to notify
                    Philips in accordance with a procedure (including the period for notification)
                    established by Philips on the details relating to such Custody Account. In case
                    Philips determines in its sole discretion that the Participant has failed to
                    notify Philips in accordance with such procedure, then the Participant shall be
                    deemed to have requested Philips to sell or cause to sell such Shares. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>4. </TD>
                    <TD WIDTH=95%>
                    Except as may otherwise be approved in writing by Philips in its sole
                    discretion, in case a Participant is no longer employed by any Employing Company
                    for any reason whatsoever, the Participant (or his or her legal representatives)
                    shall withdraw all Shares credited to the Participant&#146;s Nominee Account
                    within two (2) months of the date of such termination. In case the Participant
                    (or his or her legal representatives, as the case may be) fails to comply with
                    the foregoing obligation, then the Participant shall be deemed to have requested
                    Philips to sell or cause to sell such Shares. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER>3</P>

<PAGE>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>5. </TD>
                    <TD WIDTH=95%>
                    Each Participant shall comply with any applicable &#147;insider trading&#148;
                    laws and regulations and the Philips&#146; Rules of Conduct with respect to
                    Inside Information. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER><B>Article 6 <BR>
Capital Dilution </B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
Philips
may make equitable adjustment or substitution of the number or kind of Shares subject to
the Restricted Shares Rights, as it, in its sole discretion, deems equitable to reflect
any significant corporate event of or by Philips, for example a change in the outstanding
Shares by reason of any stock dividend or split, recapitalization, merger, consolidation,
spin-off, combination or exchange of shares or other corporate change, or any distribution
to holders of Shares other than regular cash dividends. </TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER><B>Article 7 <BR>
Premium Restricted Share Rights </B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
At
a Premium Date, Philips will deliver a number of Premium Shares which is equal to 20%
(twenty percent) of the number of Shares pursuant to the Restricted Share Rights acquired
by a Participant which are held by the Participant at, and are subject to, such Premium
Date. The foregoing obligation shall be subject further to the requirements that: (i) the
Participant is still employed by an Employing Company at the relevant Premium Date and
(ii) such Shares have been deposited on the Participant&#146;s Nominee Account during the
entire Retainment Period in order to enable Philips to monitor whether Participant has
retained the Shares during such period. Philips will not be required pursuant to the
foregoing to deliver a fraction for a Premium Share but instead the number of Premium
Shares shall be rounded downward to the next whole Share. The Participant shall not be
entitled to any compensation for such fraction of a Premium Share not delivered by Philips
pursuant to the foregoing. </TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER><B>Article 8 <BR>
Costs and Taxes </B></P>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>1. </TD>
                    <TD WIDTH=95%>
                    All costs of delivering any Shares, including, but not limited to, any Premium
                    Shares, under this Program to a Nominee Account of a Participant shall be borne
                    by Philips. All costs of delivering any Shares, including, but not limited to,
                    any Premium Shares, under this Program to a Custody Account and any other costs
                    connected with the Shares shall be borne by the Participant. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>2. </TD>
                    <TD WIDTH=95%>
                    Any and all taxes, duties, levies, charges or social security contributions
                    (&#147;Taxes&#148;) which arise under any applicable national, state, local or
                    supra-national laws, rules or regulations, whether already effective on the date
                    of grant of any Restricted Shares Rights or becoming effective thereafter, and
                    any changes or modifications therein and termination thereof which may result
                    for the Participant in connection with this Program (including, but not limited
                    to, the grant of the Restricted Shares Rights, the ownership of the Restricted
                    Shares Rights and/or the delivery of any Shares under this Program, the
                    ownership and/or the sale of any Shares acquired under this Program) shall be
                    for the sole risk and account of the Participant. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>3. </TD>
                    <TD WIDTH=95%>
                    Philips shall have the right to cause to be deducted from any salary payment or
                    other sums due by Philips or any of its subsidiaries to Participant, or
                    requiring the Participant or beneficiary of the Participant, to pay to Philips
                    an amount necessary to settle any Taxes determined by Philips necessary to be
                    withheld in connection with this Program </TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER>4</P>

<PAGE>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>&nbsp;</TD>
                    <TD WIDTH=95%>
                    (including, but not limited to, the
                    grant of the Restricted Shares Rights or the delivery of any Shares (including
                    Premium Shares) under this Program). </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>4. </TD>
                    <TD WIDTH=95%>
                    Philips shall not be required to deliver any Shares, or to transfer or cause to
                    be transferred any Shares from a Nominee Account to a Custody Account, until
                    Philips has received an amount, or the Participant has made such arrangements,
                    required by Philips necessary to satisfy any withholding of any Taxes and/or
                    costs to be borne by the Participant hereunder as determined by Philips. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER><B>Article 9 <BR>
Dividend Payment on Shares </B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp; </TD>
<TD WIDTH=95%>
Philips
is entitled, in its sole discretion, to determine the manner in which dividend on any
Shares acquired by a Participant pursuant to this Program and deposited on the Nominee
Account at the applicable record date, is paid to such Participant, including, but not
limited to the payment of dividend by means of a dividend reinvestment plan pursuant to
which the dividend will be reinvested in the purchase of Shares. </TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER><B>Article 10 <BR>
General Provisions </B></P>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>1. </TD>
                    <TD WIDTH=95%>
                    Philips shall have the authority to interpret this Program, to establish, amend,
                    and rescind any rules and regulations relating to this Program, to determine the
                    terms and conditions of any agreements entered into hereunder, and to make all
                    other determinations necessary or advisable for the administration of this
                    Program. Philips shall further have the authority to, in its sole discretion,
                    waive the requirement pursuant to Article 7 that the Shares have been and are
                    deposited on the Nominee Account during the entire Retainment Period. Such
                    waiver may be subject to such conditions as Philips may establish in its sole
                    discretion. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>2. </TD>
                    <TD WIDTH=95%>
                    No Participant shall have any rights or privileges of shareholders (including
                    the right to receive dividends and to vote) with respect to Shares to be
                    delivered pursuant to Restricted Share Rights until such Shares are actually
                    delivered to such Participant in accordance with Article 5 of this Program. The
                    Shares delivered shall carry the same rights as common shares of Philips traded
                    on Euronext Amsterdam, or the New York Stock Exchange if applicable, on the day
                    on which these are delivered. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>3. </TD>
                    <TD WIDTH=95%>
                    The (value of) Restricted Share Rights granted to, or Shares acquired by, a
                    Participant pursuant to such Restricted Share Right under this Program shall not
                    be considered as compensation in determining a Participant&#146;s benefits under
                    any benefit plan of an Employing Company, including but not limited to, group
                    life insurance, long-term disability, family survivors, or any retirement,
                    pension or savings plan. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>4. </TD>
                    <TD WIDTH=95%>
                    Nothing contained in this Program or in any grant made or Agreement entered into
                    pursuant hereto shall confer upon any Participant any right to be retained in
                    employment with any Employing Company, or to be entitled to any remuneration or
                    benefits not set forth in this Program or interfere with or limit in any way
                    with the right of the Company or any of its subsidiaries to terminate such
                    Participant&#146;s employment or to discharge or retire a Participant at any
                    time. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER>5</P>

<PAGE>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>5. </TD>
                    <TD WIDTH=95%>
                    If a provision of this Program is deemed illegal or invalid, the illegality or
                    invalidity shall not affect the remaining parts of this Program, this Program
                    shall be construed as if the illegal or invalid provisions had not been included
                    in this Program. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>6. </TD>
                    <TD WIDTH=95%>
                    Where the context requires, words in either gender shall include also the other
                    gender. </TD>
                    </TR>
                    </TABLE>
                    <BR>

               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%>7. </TD>
                    <TD WIDTH=95%>
                    This Program shall be governed by and construed in accordance with the laws of
                    The Netherlands, without regard to its principles of conflict of laws. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER>&middot;&nbsp;&nbsp;&nbsp;&middot;&nbsp;&nbsp;&nbsp;&middot;&nbsp;&nbsp;&nbsp;&middot;&nbsp;&nbsp;&nbsp;&middot;</P>

<P><B>Delivery Date Schedule </B></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=1 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=25%>&nbsp;</TD>
     <TD WIDTH=25%><B>1 Year Term</B> </TD>
     <TD WIDTH=25%><B>2 Year Term</B> </TD>
     <TD WIDTH=25%><B>3 Year Term</B></TD>
</TR>

<TR VALIGN=TOP>
     <TD WIDTH=25%>April 15, 2003</TD>
     <TD WIDTH=25%>April 15, 2004</TD>
     <TD WIDTH=25%>April 15, 2005</TD>
     <TD WIDTH=25%>April 18, 2006</TD>
</TR>

<TR VALIGN=TOP>
     <TD WIDTH=25%>July 15, 2003 </TD>
     <TD WIDTH=25%>July 15, 2004 </TD>
     <TD WIDTH=25%>July 15, 2005 </TD>
     <TD WIDTH=25%>July 17, 2006</TD>
</TR>

<TR VALIGN=TOP>
     <TD WIDTH=25%>October 14, 2003 </TD>
     <TD WIDTH=25%>October 14, 2004 </TD>
     <TD WIDTH=25%>October 14, 2005 </TD>
     <TD WIDTH=25%>October 16, 2006</TD>
</TR>

<TR VALIGN=TOP>
     <TD WIDTH=25%>February 10, 2004 </TD>
     <TD WIDTH=25%>February 10, 2005 </TD>
     <TD WIDTH=25%>February 10, 2006 </TD>
     <TD WIDTH=25%>February 12, 2007</TD>
</TR>
</TABLE>

<P ALIGN=CENTER>6</P>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.3
<SEQUENCE>5
<FILENAME>ex_4-3.htm
<DESCRIPTION>STOCK OPTION PLAN 2003
<TEXT>
<HTML>
<HEAD>
<TITLE>
Exhibit 4.3
</TITLE>
</HEAD>
<BODY>

<P ALIGN=RIGHT><B>Exhibit 4.3</B> </P>

<P ALIGN=CENTER><B>TERMS AND CONDITIONS<BR><BR>
OF<BR>
GLOBAL PHILIPS STOCK OPTION PROGRAM 2003<BR>
- -grants April 2003, July 2003, October 2003, and February 2004-<BR><BR>

Article 1<BR>
Definitions</B></P>

<P>In this Global Philips Stock Option Program 2003 the following definitions
shall apply:</P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>1. </TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Closing Price:</TD>
     <TD WIDTH=64%>the price of a Share with dividend, if any, at the closing of
     the Official Segment of Euronext Amsterdam N.V.&#146;s stock market
     (&#147;Euronext Amsterdam&#148;) as published in the Official Price List of this
     stock exchange.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>2. </TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Custody Account:</TD>
     <TD WIDTH=64%>a custody account maintained in the name of a Participant
     other than a Nominee Account.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>3. </TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Date of Grant:</TD>
     <TD WIDTH=64%>the date at which the Option is granted to the Option Holder,
     for the respective grants of the Program being:</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=36%></TD>
     <TD WIDTH=24%>- grant April 2003:</TD>
     <TD WIDTH=40%>the date of publication of the first quarter results
     2003, i.e., April 15, 2003;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=36%></TD>
     <TD WIDTH=24%>- grant July 2003:</TD>
     <TD WIDTH=40%>the date of publication of the half
year results 2003, i.e. July 15, 2003;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=36%></TD>
     <TD WIDTH=24%>- grant October 2003:</TD>
     <TD WIDTH=40%>the date of publication of the third quarter results
2003, i.e. October 14, 2003;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=36%></TD>
     <TD WIDTH=24%>- grant February 2004:</TD>
     <TD WIDTH=40%>the date of publication of the annual results 2003, i.e.
February 10, 2004;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>4.</TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Employing Company:</TD>
     <TD WIDTH=64%>any company within the Philips group of companies and such
other company as Philips may from time to time designate or approve.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>5.</TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Grant Price:</TD>
     <TD WIDTH=64%>the price to be paid by the Option Holder to acquire a Share
upon exercising an Option. Such price will be equal to the Closing Price on the
applicable Date of Grant.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>6.</TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Nominee Account:</TD>
     <TD WIDTH=64%>a custody account maintained in the name of a Participant
established by an administrator designated by Philips.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>7.</TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Option:</TD>
     <TD WIDTH=64%>a right granted by Philips under the Program to acquire one
Share subject to the terms and conditions thereof.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>8.</TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Option Holder:</TD>
     <TD WIDTH=64%>a person holding any Options.</TD>
</TR>
</TABLE>

<P ALIGN=CENTER>1</P>

<PAGE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>9.</TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Option Period:</TD>
     <TD WIDTH=64%>the term for which an Option is granted as specified in
Article 3 (subject to any extension as set forth in Article 4.3).</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>10.</TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Philips:</TD>
     <TD WIDTH=64%>Koninklijke Philips Electronics N.V.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>11.</TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Program:</TD>
     <TD WIDTH=64%>the Global Philips Stock Option Program 2003.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>12.</TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=30%>Share:</TD>
     <TD WIDTH=64%>a common share of Philips.</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><B>Article 2<BR>
Acquisition of Options</B></P>

<P>Any Options may be granted to an eligible individual as per the applicable
Date of Grant, subject to the (acceptance by such individual of the) terms and
conditions of this Program. Any Options offered to any such individual and the
terms and conditions governing such Options shall be deemed accepted by such
individual with effect from the applicable Date of Grant in case Philips has not
received, in accordance with a procedure established by Philips, a notice of
rejection of such Options within fourteen (14) days of the notice of grant of
the Options or such later date as may be determined by Philips. </P>

<P ALIGN=CENTER><B>Article 3<BR>
Restrictions on Exercise and Option Period</B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>1. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>Options shall not be exercisable before the third
anniversary of the Date of Grant. Unvested and lapsed Options cannot be
exercised.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>2. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>In principle, the Option Period is ten (10) years running
from the Date of Grant, subject to this paragraph 2 and to Article 4. Upon
request of the Option Holder exercising Options pursuant to Article 6, the
Option Period for the Options being exercised will be limited to the period from
the Date of Grant up to, and including, the date Philips receives the above
request in accordance with a procedure established by Philips, provided that the
Option Period is at least three years.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>3.</TD>
     <TD WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=94%>In principle, Options may only be exercised (subject to a
minimum of ten (10) units) at the last day of the prevailing Option Period,
subject to this Article 3 and Article 4.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>4.</TD>
     <TD WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=94%>Subject to this Article 3 and Article 4, Members of the
Group Management Committee of Philips, the Head of Corporate Control and the
Head of Corporate Treasury, may only exercise Options during the period of ten
business days after publication of Philips&#146; annual or quarterly results.</TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER><B>Article 4<BR>
Termination of Employment</B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>1.</TD>
     <TD ALIGN=LEFT WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=94%>Except as provided in Article 4.2, 4.3 and 4.4 hereof, in
case an Option Holder is no longer employed by any Employing Company as a result
of the termination of such Option Holder&#146;s employment with an Employing
Company for any reason whatsoever during the applicable Option Period, any
Options held by such Option Holder at the date of such termination shall be
forfeited effective as of the date of termination of such Option Holder&#146;s
employment with the Employing Company without the Option Holder</TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER>2</P>

<PAGE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%></TD>
     <TD ALIGN=LEFT WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=94%>being entitled to any compensation or any obligation on the
part of Philips or any of its subsidiaries unless Philips determines, in its
sole discretion, otherwise in writing. Any such determination shall be final,
conclusive and binding and may be subject to such conditions as Philips may
determine appropriate.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>2.</TD>
     <TD ALIGN=LEFT WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=94%>In case an Option Holder is no longer employed by any
Employing Company during the applicable Option Period as a result of the
termination of such Option Holder&#146;s employment with an Employing Company
for reasons of (i) disablement, (ii) retirement &#150;including, but not limited
to, early retirement- (retirement or early retirement to be defined as
termination of service with eligibility for an immediate retirement benefit
under a retirement plan of an Employing Company under which such Option Holder
was covered, provided payment of such retirement benefit begins immediately
following such termination), or (iii) the expiration of a temporary contract of
employment, provided such temporary contract of employment has not been extended
one or more times, any Options held by such Option Holder at the date of
termination shall, to the extent such Options were exercisable at the date of
such termination, remain exercisable in accordance with Article 3, provided that
in such case the Option Period will expire upon the earlier of (a) ten (10)
years from the Date of Grant or (b) five (5) years from the date of such
termination.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>3.</TD>
     <TD ALIGN=LEFT WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=94%>In case an Option Holder is no longer employed by any
Employing Company during the applicable Option Period as a result of the
termination of such Option Holder&#146;s employment with an Employing Company
for reasons of (i) death or (ii) legal incapacity of the Option Holder, the
Options shall remain exercisable during the Option Period in accordance with
Article 3, provided that in the event the remaining Option Period as from the
date of termination shall be less than twelve (12) months, then such Options
shall be exercisable for a period of twelve (12) months as of the date of such
termination and the Option Period shall be deemed extended accordingly and
provided further that the Options shall only be exercisable in the manner as set
forth in Article 9.</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>4.</TD>
     <TD ALIGN=LEFT WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=94%>In case an Option Holder is no longer employed by any
Employing Company during the applicable Option Period as a result of the sale or
other divestment of a business, subsidiary, division or other business unit of
Philips or any part thereof (&#147;Divested Business&#148;), any Options held by
such Option Holder at the date of such termination shall remain exercisable in
accordance with the terms and conditions of this Program, provided that the
Option Period will expire upon the earlier of (a) ten (10) years as from the
Date of Grant or (b) five (5) years as from the date of such termination, and
provided further that such Options will be forfeited as of the date of
termination of the Option Holder&#146;s employment with the company which
acquired the Divested Business from Philips or any of its subsidiaries, without
the Option Holder being entitled to any compensation or any obligation on the
part of Philips or its subsidiaries or the transferee or its subsidiaries.</TD>
</TR>
</TABLE>
<BR>

<P ALIGN=CENTER><B>Article 5<BR>
Non-transferability</B> </P>

<P>The Options are strictly personal, and may not be assigned, transferred
(except that, in case of death of the Option Holder during the Option Period,
any Options held by the Option Holder at the date of his death shall pass to his
heirs or legatees), pledged, hypothecated, or otherwise encumbered or disposed
of in any manner. The Option Holder may not engage in any transactions on any
exchange on the basis of any Options. Any violation of the terms of this Article
5 will cause the Options to become immediately null and void without further
notice and without the Option Holder being entitled to any compensation.

<P ALIGN=CENTER>3</P>

<PAGE>

<P ALIGN=CENTER><B>Article 6<BR>
Exercise of Options</B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>1. </TD>
     <TD ALIGN=LEFT WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>In order to exercise Options which are exercisable in
accordance with this Program, the Option Holder must notify Philips in
accordance with a procedure determined by Philips. The notice shall state:</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%></TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=3%>(a)</TD>
     <TD WIDTH=91%>the Date of Grant of the Options he wishes to exercise;</TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%></TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=3%>(b)</TD>
     <TD WIDTH=91%>
     if applicable, the confirmation that the Option Holder wants to limit the Option
     Period pursuant to Article 3, paragraph 2;</TD>
     </TR>
     </TABLE>
     <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%></TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=3%>(c)</TD>
     <TD WIDTH=91%>
          the number of Options to be exercised; and</TD>
          </TR>
          </TABLE>
          <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%></TD>
     <TD WIDTH=3%></TD>
     <TD WIDTH=3%>(d)</TD>
     <TD WIDTH=91%>
     whether Shares to be obtained upon such exercise: </TD>
     </TR>
     </TABLE>
     <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=3%>&#150;</TD>
     <TD WIDTH=91%>
be sold, on behalf of the Option Holder, as soon as possible and the revenue deducted by
the Grant Price, multiplied by the number of Options so being exercised, and further
costs, be paid to the Option Holder at a bank account indicated by him in accordance with
a procedure determined by Philips; or </TD>
<TD>&nbsp; </TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=3%>&nbsp;</TD>
     <TD WIDTH=3%>&#150;</TD>
     <TD WIDTH=91%>
be delivered to the Option Holder as provided for in paragraphs 2, 3, 4 and 5 below.
</TD>
</TR>
</TABLE>
<BR>



<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=6%>&nbsp; </TD>
<TD WIDTH=93%>
Such
notice shall be accompanied by the payment in full of the Grant Prise, multiplied by the
number of Options so being exercised. Such payment shall be made: (a) in cash, (b) through
simultaneous sale through a broker of Shares acquired on exercise, subject to it being
permitted under the applicable regulations, (c) through additional methods prescribed by
Philips or (d) by a combination of any such method. </TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>2. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
                    Philips may require an Option Holder to maintain a Nominee Account in connection
                    with this Program. Nothing contained in this Program shall obligate Philips to
                    establish or maintain or cause to establish or maintain a Nominee Account for
                    any Option Holder. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>3. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
                    Subject to the terms of this Program, Philips will deliver a Share to a
                    Participant on or as soon as reasonably practicable after the exercise of an
                    Option. In no event shall Philips have any obligation to deliver any Shares to
                    an Option Holder prior to the exercise of Options. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>4. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
                    Any Shares to be delivered pursuant to Article 5.1 will be credited to the
                    Nominee Account except if an Option Holder (i) requests Philips to credit such
                    Shares to a Custody Account or (ii) does not maintain a Nominee Account at the
                    date of delivery of such Shares. In case (i) or (ii) as described in the
                    foregoing sentence applies, the Option Holder shall be responsible to notify
                    Philips in accordance with a procedure (including the period for notification)
                    established by Philips on the details relating to such Custody Account. In case
                    Philips determines in its sole discretion that the Option Holder has failed to
                    notify Philips in accordance with such procedure, then the Option Holder shall
                    be deemed to have requested Philips to sell or cause to sell such Shares.</TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER>4</P>

<PAGE>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>5. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
                    Except as may otherwise approved in writing by Philips in its sole discretion,
                    in case an Option Holder is no longer employed by any Employing Company for any
                    reason whatsoever, the Option Holder (or his or her legal representatives) shall
                    withdraw all Shares credited to the Option Holder&#146;s Nominee Account within
                    two (2) months of the date of such termination. In case the Option Holder (or
                    his or her legal representatives, as the case may be) fails to comply with the
                    foregoing obligation, then the Option Holder shall be deemed to have requested
                    Philips to sell or cause to sell such Shares. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>6. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
                    The Option Holder who has &#147;Inside Information&#148; according to the
                    Philips&#146; Rules of Conduct with respect to Inside Information is prohibited
                    from the exercise of Options and the sale of Shares acquired pursuant to the
                    exercise of any Options. </TD>
                    </TR>
                    </TABLE>
                    <BR>

<P ALIGN=CENTER><B>Article 7 <BR>
Capital Dilution </B></P>

<P>Philips may make equitable adjustment
or substitution of (a) the number or kind of Shares subject to the Options, and/or (b) the
Grant Price, as it, in its sole discretion, deems equitable to reflect any significant
corporate event of or by Philips, for example a change in the outstanding Shares by reason
of any stock dividend or split, recapitalization, merger, consolidation, spin-off,
combination or exchange of shares or other corporate change, or any distribution to
holders of Shares other than regular cash dividends. </P>

<P>The effect of the adjustment or
substitution shall be to preserve both the aggregate difference and the aggregate ratio
between the Grant Price and the fair market value of the Shares to be acquired upon
exercise of the Options. The Option Holder shall be notified promptly of such adjustment
or substitution. </P>

<P ALIGN=CENTER><B>Article 8 <BR>
Costs and Taxes </B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>1. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               All costs of delivering any Shares to the Option Holder upon exercise of any
               Options shall be born by Philips.</TD>
               </TR>
               </TABLE>
               <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>2. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               Any and all taxes, duties, levies, charges or social security contributions
               (&#147;Taxes&#148;) which arise under any applicable national, state, local or
               supra-national laws, rules or regulations, whether already effective on the Date
               of Grant or becoming effective thereafter, and any changes or modifications
               therein and termination thereof which may result for the Option Holder in
               connection with this Program (including, but not limited to, the grant, the
               ownership and/or the exercise of the Options, and/or the delivery, ownership
               and/or the sale of any Shares acquired under this Program) shall be for the sole
               risk and account of the Option Holder. </TD>
               </TR>
               </TABLE>
               <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>3. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               Philips shall have the right to cause to be deducted from any salary payment or
               other sums due by Philips or any of its subsidiaries to an Option Holder, or
               requiring the Option Holder or beneficiary of the Option Holder, to pay to
               Philips an amount necessary to settle any Taxes determined by Philips necessary
               to be withheld in connection with this Program (including, but not limited to,
               the grant of the Options or the delivery of any Shares under this Program). </TD>
               </TR>
               </TABLE>
               <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>4. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               Philips shall not be required to deliver any Shares, or to transfer or cause to
               be transferred any Shares from a Nominee Account to a Custody Account, until
               Philips has received an amount, or the Option Holder has made such arrangements,
               required by Philips necessary to satisfy any withholding of any Taxes and/or
               costs to be borne by the Option Holder hereunder as determined by Philips.</TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER>5</P>

<PAGE>

<P ALIGN=CENTER><B>Article 9 <BR>
Cash Alternative </B></P>

<P>Philips, upon receipt of a notice, as
referred to in Article 6.1 hereof to exercise any Option, may advise an Option Holder
resident outside the Netherlands to request in writing an amount in cash as an alternative
to Shares. Upon such request the Option Holder is entitled to receive an amount in Euro or
in U.S. Dollars, as indicated by the Option Holder, equal to the Closing Price on the date
of receipt of such request minus the Grant Price, multiplied by the number of Options so
being exercised. Further, any costs to be paid and any applicable Taxes shall be deducted
from the amount to be received by the Option Holder. If on the date of receipt of the
notice Shares have not been traded on of Euronext Amsterdam the Closing Price will be that
of the first subsequent trading day on of Euronext Amsterdam. The same method is being
used for calculating the cash amount to which heirs and legatees of an Option Holder are
entitled in accordance with Article 4.3. </P>

<P ALIGN=CENTER><B>Article 10 <BR>
General Provisions </B></P>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>1. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               Philips shall have the authority to interpret this Program, to establish, amend,
               and rescind any rules and regulations relating to this Program, to determine the
               terms and conditions of any agreements entered into hereunder, and to make all
               other determinations necessary or advisable for the administration of this
               Program. </TD>
               </TR>
               </TABLE>
               <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>2. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               No Option Holder shall have any rights or privileges of shareholders (including
               the right to receive dividends and to vote) with respect to Shares to be
               delivered pursuant to the exercise of any Options until such Shares are actually
               delivered to such Option Holder in accordance with Article 6 of this Program.
               The Shares delivered shall carry the same rights as common shares of Philips
               traded on Euronext Amsterdam, or the New York Stock Exchange if applicable, on
               the day on which these are delivered.</TD>
               </TR>
               </TABLE>
               <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>3. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               The (value of) Options granted to, or Shares acquired by, an Option Holder
               pursuant to such Options under this Program shall not be considered as
               compensation in determining an Option Holder&#146;s benefits under any benefit
               plan of an Employing Company, including but not limited to, group life
               insurance, long-term disability, family survivors, or any retirement, pension or
               savings plan. </TD>
               </TR>
               </TABLE>
               <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>4. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               Nothing contained in this Program or in any grant made or Agreement entered into
               pursuant hereto shall confer upon any Option Holder any right to be retained in
               employment with any Employing Company, or to be entitled to any remuneration or
               benefits not set forth in this Program or interfere with or limit in any way
               with the right of the Company or any of its subsidiaries to terminate such
               Option Holder&#146;s employment or to discharge or retire a Option Holder at any
               time. </TD>
               </TR>
               </TABLE>
               <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>5. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               If a provision of this Program is deemed illegal or invalid, the illegality or
               invalidity shall not affect the remaining parts of this Program, this Program
               shall be construed as if the illegal or invalid provisions had not been included
               in this Program. </TD>
               </TR>
               </TABLE>
               <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>6. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               Where the context requires, words in either gender shall include also the other
               gender. </TD>
               </TR>
               </TABLE>
               <BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
     <TR VALIGN=TOP>
     <TD WIDTH=3%>7. </TD>
     <TD WIDTH=3%>&nbsp; </TD>
     <TD WIDTH=94%>
               This Program shall be governed by and construed in accordance with the laws of
               The Netherlands, without regard to its principles of conflict of laws. </TD>
               </TR>
               </TABLE>
               <BR>

<P ALIGN=CENTER>&middot;&nbsp;&nbsp;&nbsp;&middot;&nbsp;&nbsp;&nbsp;&middot;&nbsp;&nbsp;&nbsp;&middot;&nbsp;&nbsp;&nbsp;&middot;</P>

<P ALIGN=CENTER>6</P>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>6
<FILENAME>ex_23-1.htm
<DESCRIPTION>CONSENT OF KPMG
<TEXT>
<HTML>
<HEAD>
<TITLE>
Exhibit 23.1
</TITLE>
</HEAD>
<BODY>

<P ALIGN=RIGHT><B>Exhibit 23.1</B> </P>

<P ALIGN=CENTER><B>CONSENT OF THE INDEPENDENT AUDITORS </B></P>

<P>To the Supervisory Board and Board of
Management of Koninklijke Philips Electronics N.V. </P>

<P>We consent to the incorporation by
reference in this registration statement on Form S-8 of our report dated February 7, 2003,
relating to the consolidated balance sheets of Koninklijke Philips Electronics N.V. and
subsidiaries as of December 31, 2002 and 2001, and the related consolidated statements of
income, changes in stockholders&#146; equity and cash flows for each of the years in the
three-year period ended December 31, 2002, included in the December 31, 2002 annual report
on Form 20-F of Koninklijke Philips Electronics N.V. </P>

<P ALIGN=LEFT>Eindhoven, The Netherlands </P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH=60%>March 28, 2003.</TD>
     <TD WIDTH=40%>KPMG ACCOUNTANTS N.V.<BR><BR>
/s/ KPMG Accountants N.V.</TD>
</TR>
</TABLE>

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</SEC-DOCUMENT>
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