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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000891836-10-000058.txt : 20100222
<SEC-HEADER>0000891836-10-000058.hdr.sgml : 20100222
<ACCEPTANCE-DATETIME>20100222150020
ACCESSION NUMBER:		0000891836-10-000058
CONFORMED SUBMISSION TYPE:	S-8
PUBLIC DOCUMENT COUNT:		8
FILED AS OF DATE:		20100222
DATE AS OF CHANGE:		20100222
EFFECTIVENESS DATE:		20100222

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:	333-165017
		FILM NUMBER:		10622398

	BUSINESS ADDRESS:	
		STREET 1:		BREITNER CENTER
		STREET 2:		AMSTELPLEIN 2
		CITY:			AMSTERDAM
		STATE:			P7
		ZIP:			1096 BC
		BUSINESS PHONE:		31 20 59 77777

	MAIL ADDRESS:	
		STREET 1:		BREITNER CENTER
		STREET 2:		AMSTELPLEIN 2
		CITY:			AMSTERDAM
		STATE:			P7
		ZIP:			1096 BC

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHILIPS ELECTRONICS N V
		DATE OF NAME CHANGE:	19930727

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PHILIPS NV
		DATE OF NAME CHANGE:	19910903
</SEC-HEADER>
<DOCUMENT>
<TYPE>S-8
<SEQUENCE>1
<FILENAME>sc0028.htm
<TEXT>
<html>
<head>
    <title>sc0028.htm</title>
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<body bgcolor="#ffffff" style="DISPLAY: inline; FONT-FAMILY: 'TIMES NEW ROMAN'; FONT-SIZE: 11pt">
    <div style="TEXT-ALIGN: center; TEXT-INDENT: 0pt; MARGIN: 0pt; FONT-SIZE: 11pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">As filed with the Securities and
Exchange Commission on February 22, 2010</font></div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Registration No.
333-_____</font></div>
    <div>&#160;</div>
    <hr noshade size="4">
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 13pt; FONT-WEIGHT: bold" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">UNITED
STATES<br>SECURITIES AND EXCHANGE COMMISSION<br>Washington, D.C.
20549</font></div>
    <hr noshade size="1" width="20%">
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 16pt; FONT-WEIGHT: bold" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">FORM
S-8</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">REGISTRATION
STATEMENT<br>UNDER THE<br>SECURITIES ACT OF 1933</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 16pt; FONT-WEIGHT: bold" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Koninklijke
Philips Electronics N.V.<br><font style="FONT-SIZE: 9pt; FONT-WEIGHT: normal">(Exact Name of Registrant as
Specified in Its Charter)</font><br><br>Royal Philips Electronics<br><font style="FONT-SIZE: 9pt; FONT-WEIGHT: normal">(Registrant&#8217;s Name for Use in
English)</font></font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">The
Netherlands<br><font style="FONT-SIZE: 9pt; FONT-WEIGHT: normal">(State or Other
Jurisdiction of Incorporation or Organization)</font><br><br>None<br><font style="FONT-SIZE: 10pt; FONT-WEIGHT: normal">(I.R.S. Employer Identification
Number)</font></font></div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center">Breitner Tower, Amstelplein 2, Amsterdam 1070MX, The
Netherlands<br><font style="FONT-SIZE: 9pt; FONT-WEIGHT: normal">(Address of
Principal Executive Offices)</font></div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center">Koninklijke&#160;Philips Electronics N.V. Nonqualified Stock
Purchase Plan<br>Royal Philips Electronics Long-Term Incentive Plan (Consisting
of Global Philips<br>Stock Option Program and Global Philips Restricted Share
Rights Program)<br><font style="FONT-SIZE: 9pt; FONT-WEIGHT: normal">(Full Title
of the Plan)</font></div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center"><font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt; FONT-WEIGHT: bold">Pamela
Dunlap<br></font>

      <div style="TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt; FONT-WEIGHT: bold">3000
Minuteman Road</font></div>
      <div style="TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt; FONT-WEIGHT: bold">Building
1</font></div>
      <div style="TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt; FONT-WEIGHT: bold">Andover,
MA 01810</font></div>
      <div style="TEXT-ALIGN: center; LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt; FONT-WEIGHT: bold">(978)
659-4801</font><br><font style="FONT-SIZE: 9pt; FONT-WEIGHT: normal">(Name,
Address and Telephone Number of Agent for Service)</font></div>
    </div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center"><font style="FONT-SIZE: 9pt; FONT-WEIGHT: normal">Please Send
Copies of Communications to:</font><br>Andrew D. Soussloff<br>Sullivan &amp;
Cromwell LLP<br>125 Broad Street, New York, New York 10004-2498<br>(212)
558-4000</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 12pt" align="left"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'; FONT-SIZE: 10pt">Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated
filer,</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'; FONT-SIZE: 10pt">a
non-accelerated filer, or a smaller reporting company. See the definitions of
&#8220;large accelerated filer,&#8221;</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'; FONT-SIZE: 10pt">&#8220;accelerated filer,&#8221;
&#8220;non-accelerated filer&#8221; and &#8220;smaller reporting company&#8221;</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'; FONT-SIZE: 10pt">in Rule 12b-2 of the
Exchange Act.&#160;(Check one)</font></div>
    <div>&#160;</div>
    <div>
    </div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
            <td width="10%">&#160;</td>
            <td width="50%"><font style="FONT-FAMILY: 'times new roman'; FONT-SIZE: 10pt">Large accelerated
      filer&#160;&#160;</font> <img src="ballotx.jpg" alt=""></td>
            <td width="40%"><font style="FONT-FAMILY: 'times new roman'; FONT-SIZE: 10pt">Accelerated
      filer&#160;&#160;</font> <img src="ballot.jpg" alt=""><br></td>
          </tr><tr valign="top">
            <td width="10%">&#160;</td>
            <td width="50%"><font style="FONT-FAMILY: 'times new roman'; FONT-SIZE: 10pt">Non-accelerated
      filer&#160;&#160;</font> <img src="ballot.jpg" alt=""></td>
            <td width="40%"><font style="FONT-FAMILY: 'times new roman'; FONT-SIZE: 10pt">Smaller reporting
      company&#160;&#160;</font> <img src="ballot.jpg" alt=""></td>
          </tr></table>
    </div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
        </div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
            <td width="100%">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center">CALCULATION OF REGISTRATION FEE</div>
              <div>&#160;</div>
            </td>
          </tr></table>
    </div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td valign="bottom" width="28%" style="BORDER-BOTTOM: 4px; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 3pt double; BORDER-RIGHT: black 0.5pt solid; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Title of Each
      Class of<br>Securities to be Registered</font></div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" width="18%" style="BORDER-BOTTOM: 4px; BORDER-LEFT: black 0.5pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 3pt double; BORDER-RIGHT: black 0.5pt solid; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Amount to be
      Registered (2)</font></div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" width="18%" style="BORDER-BOTTOM: 4px; BORDER-LEFT: black 0.5pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 3pt double; BORDER-RIGHT: black 0.5pt solid; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Proposed
      Maximum Offering Price Per Share (3)</font></div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" width="18%" style="BORDER-BOTTOM: 4px; BORDER-LEFT: black 0.5pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 3pt double; BORDER-RIGHT: black 0.5pt solid; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Proposed
      Maximum Aggregate Offering Price (3)</font></div>
              <div>&#160;</div>
            </td>
            <td valign="bottom" width="18%" style="BORDER-BOTTOM: 4px; BORDER-LEFT: black 0.5pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 3pt double; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Amount of
      Registration Fee</font></div>
              <div>&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="28%" style="BORDER-BOTTOM: black 3pt double; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 1px solid; BORDER-RIGHT: black 0.5pt solid; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="left">Common Shares of Koninklijke Philips Electronics N.V., par
      value 0.20 Euro per share (1)</div>
            </td>
            <td valign="top" width="18%" style="BORDER-BOTTOM: black 3pt double; BORDER-LEFT: black 0.5pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 1px solid; BORDER-RIGHT: black 0.5pt solid; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="center">16,500,000</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="18%" style="BORDER-BOTTOM: black 3pt double; BORDER-LEFT: black 0.5pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 1px solid; BORDER-RIGHT: black 0.5pt solid; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="center">$30.21</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="18%" style="BORDER-BOTTOM: black 3pt double; BORDER-LEFT: black 0.5pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 1px solid; BORDER-RIGHT: black 0.5pt solid; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="center">$498,465,000</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="18%" style="BORDER-BOTTOM: black 3pt double; BORDER-LEFT: black 0.5pt solid; PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; BORDER-TOP: black 1px solid; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 9pt" align="center">$35,540.55</div>
              <div>&#160;</div>
            </td>
          </tr></table>
    </div>
    <div style="TEXT-ALIGN: left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="TEXT-ALIGN: left; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="TEXT-ALIGN: left;">
            <td width="5%">
              <div style="MARGIN-TOP: 12pt; TEXT-INDENT: -18px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; FONT-SIZE: 9pt" align="justify">(1)</div>
              <div>&#160;</div>
            </td>
            <td width="95%">
              <div style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; FONT-SIZE: 9pt" align="justify">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">In
      addition, pursuant to Rule 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 Koninklijke Philips Electronics N.V.
      Nonqualified Stock Purchase Plan.&#160;&#160;Pursuant to Rule 457(h)(2) no
      fee is payable with respect to the registration of these
      interests.</font></div>
              </div>
            </td>
          </tr><tr valign="top">
            <td width="5%">
              <div style="MARGIN-TOP: 12pt; TEXT-INDENT: -18px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; FONT-SIZE: 9pt" align="justify">(2)</div>
              <div>&#160;</div>
            </td>
            <td width="95%">
              <div style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; FONT-SIZE: 9pt" align="justify">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">2,000,000
      of the shares are registered to be offered or sold pursuant to the
      Koninklijke Philips Electronics N.V. Nonqualified Stock Purchase
      Plan&#160;and 14,500,000 of the shares are registered to be offered or
      sold pursuant to the Royal Philips Electronics Long-Term Incentive
      Plan.</font></div>
              </div>
            </td>
          </tr><tr valign="top">
            <td width="5%">
              <div style="MARGIN-TOP: 12pt; TEXT-INDENT: -18px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; FONT-SIZE: 9pt" align="justify">(3)</div>
              <div>&#160;</div>
            </td>
            <td width="95%">
              <div style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; FONT-SIZE: 9pt" align="justify">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Estimated
      solely for the purpose of computing the amount of the registration
      fee.&#160;&#160;Pursuant to Rule 457(h) and Rule 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&#160;February 18, 2010.</font></div>
              </div>
              <div>&#160;</div>
            </td>
          </tr></table>
    </div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
        </div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="BORDER-BOTTOM: 1pt solid; MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">PART
I</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center">INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="center"><font style="DISPLAY: inline; TEXT-DECORATION: underline">EXPLANATORY
NOTE</font></div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 36px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify">
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">This
registration statement on Form S-8 registers common shares, par value 0.20 euro
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 Koninklijke Philips Electronics
N.V. Nonqualified Stock Purchase Plan. After giving effect to this filing, an
aggregate of 14,609,460 shares of the registrant&#8217;s common stock have been
registered for issuance pursuant to the Koninklijke Philips Electronics N.V.
Nonqualified Stock Purchase Plan.</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.&#160;&#160;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.</font></div>
    </div>
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    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">PART
II</font></div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center">INFORMATION REQUIRED IN THE REGISTRATION STATEMENT</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item
3.&#160;&#160;&#160;&#160;&#160;Incorporation of Documents by
Reference</font></div>
    <div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Securities and Exchange Commission (the &#8220;Commission&#8221;) allows us to &#8220;incorporate
by reference&#8221; the information we file with them, which means that we can
disclose important information to you by referring you to those
documents.&#160;&#160;The information incorporated by reference is considered to
be part of this registration statement, and subsequent information that we file
with the Commission will automatically update and supersede this
information.&#160;&#160;Information set forth in this registration statement
supersedes any previously filed information that is incorporated by reference
into this registration statement.&#160;&#160;We incorporate by reference into
this registration statement the following:</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Our
Annual Report on Form 20-F for the fiscal year ended December 31, 2009 (File No.
001-05146-01) filed with the Commission on February 22, 2010;</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
Annual Report on Form 11-K of the Koninklijke Philips Electronics N.V.
Nonqualified Stock Purchase Plan (File No. 001-05146-01) filed with the
Commission on October&#160;29, 2009; and</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
description of our common shares, par value 0.20 euro per share, set forth in
the registration statement on Form S-8 (File No. 333-140784) filed with the
Commission on February 20, 2007.</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
addition, to the extent designated therein, certain reports on Form 6-K and all
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 shall be deemed to be incorporated by reference
into this registration statement and to be part of this registration statement
from the date of filing of such reports.</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item
4.&#160;&#160;&#160;&#160;&#160;Description of Securities</font></div>
    <div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Not
applicable.</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item
5.&#160;&#160;&#160;&#160;&#160;Interests of Named Experts and
Counsel</font></div>
    <div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Not
applicable.</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item
6.&#160;&#160;&#160;&#160;&#160;Indemnification of Directors and
Officers</font></div>
    <div>
      <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt">The articles of association of Royal
Philips Electronics provide that, unless the law requires otherwise, the members
of the board of management and of the supervisory board shall be reimbursed by
Royal Philips Electronics for various costs and expenses, including the
reasonable costs of defending claims and of appearing in legal proceedings and
any damages which they are ordered to pay in respect of an act or failure to act
in the exercise of functions performed at the request of the Royal Philips
Electronics. Under certain circumstances, described </font></font></div>
      <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>
      <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
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          <div style="TEXT-ALIGN: center; WIDTH: 100%">
          </div>
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
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          </div>
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      <div style="TEXT-ALIGN: left; LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt">in the articles of association, such as
if it has been established in a final judgment by a Dutch court or by an
arbitrator that an act or failure to act by a member of the board of management
or the supervisory board can be characterized as intentional (&#8216;opzettelijk&#8217;),
intentionally reckless (&#8216;bewust roekeloos&#8217;) or seriously culpable (&#8216;ernstig
verwijtbaar&#8217;) or if the costs and expenses are reimbursed by insurers under an
insurance policy, there will be no entitlement to this
reimbursement.&#160;&#160;</font></font></div>
      <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 36px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify">
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
    </div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item
7.&#160;&#160;&#160;&#160;&#160;Exemption from Registration Claimed</font></div>
    <div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Not
applicable.</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    </div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item
8.&#160;&#160;&#160;&#160;&#160;Exhibits</font></div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="600" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">Exhibit
      No.</font></div>
            </td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; TEXT-DECORATION: underline">Description</font></div>
            </td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;</td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;</td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">4.1</font></div>
            </td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">Koninklijke Philips
      Electronics&#160;N.V. Nonqualified Stock Purchase Plan </font></div>
            </td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in"><font style="FONT-SIZE: 10pt">&#160;</font></td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;</td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">4.2</font></div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">Global Philips Stock Option
      Program (part of Royal Philips Electronics Long-Term Incentive
      Plan)</font></div>
            </td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in"><font style="FONT-SIZE: 10pt">&#160;</font></td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;</td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">4.3</font></div>
            </td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">Global Philips Restricted
      Share Rights Program (part of Royal Philips Electronics Long-Term
      Incentive Plan)</font></div>
            </td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in"><font style="FONT-SIZE: 10pt">&#160;</font></td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;</td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">23.1</font></div>
            </td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">Consent of KPMG Accountants
      NV, an Independent Registered Public Accounting Firm</font></div>
            </td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">23.2</font></div>
            </td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify"><font style="FONT-SIZE: 10pt">Consent of KPMG LLP, an
      Independent Registered Public Accounting Firm</font></div>
            </td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in"><font style="FONT-SIZE: 10pt">&#160;</font></td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;</td>
          </tr><tr>
            <td valign="top" width="91" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="left"><font style="FONT-SIZE: 10pt">24</font></div>
            </td>
            <td valign="top" width="499" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="left"><font style="FONT-SIZE: 10pt">Power of attorney (included on
      signature page).</font></div>
            </td>
          </tr></table>
    </div><br>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item
9.&#160;&#160;&#160;&#160;&#160;Undertakings</font></div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 36px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify">
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
undersigned registrant hereby undertakes:</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;To
file, during any period in which offers or sales are being made, a
post-effective amendment to this registration statement:</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(i) to include any prospectus required
by Section 10(a)(3) of the Securities Act of 1933 (the &#8220;Act&#8221;);</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(ii) to reflect in the prospectus any
facts or events arising after the effective date of the registration statement
(or the most recent post-effective amendment thereof) which, individually or in
the aggregate, represent a fundamental change in the information set forth in
the registration statement. Notwithstanding the foregoing, any increase or
decrease in volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered) and any deviation
from the low or high end of the estimated maximum</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
          </div>
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
        </div>
      </div>
    </div>
    <div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">offering
range may be reflected in the form of prospectus filed with the Commission
pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price
represent no more than a 20&#160;percent change in the maximum aggregate
offering price set forth in the &#8220;Calculation of Registration Fee&#8221; table in the
effective registration statement; and</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>(iii)&#160;&#160;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;</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-STYLE: italic; DISPLAY: inline">provided, however</font>, that if
the information required to be included in a post-effective amendment by
paragraphs (a)(1)(i) and (ii) above 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 Securities Exchange Act of 1934 that are incorporated by
reference in this Registration Statement, paragraphs (a)(1)(i) and (ii) shall
not apply;</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;That,
for the purpose of determining any liability under the Act 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 <font style="FONT-STYLE: italic; DISPLAY: inline">bona fide</font> offering thereof;
and</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 72pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(3)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;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.</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;The
undersigned registrant hereby undertakes that, for purposes of determining any
liability under the Act, each filing of the registrant&#8217;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&#8217;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 <font style="FONT-STYLE: italic; DISPLAY: inline">bona fide</font> offering
thereof.</font></div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 36pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Insofar
as indemnification for liabilities arising under the Act 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 Act and is, therefore,
unenforceable.&#160;&#160;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.</font></div>
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    </div>
    <div>
    </div>
    <div>&#160;</div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
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        <div style="TEXT-ALIGN: center; WIDTH: 100%">
        </div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold">SIGNATURES OF
ROYAL PHILIPS ELECTRONICS</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 36px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify">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 February 22, 2010.</div>
    <div>&#160;</div>
    <div style="MARGIN: 0pt 1in 24pt 1.5in; FONT-SIZE: 11pt" align="left">KONINKLIJKE
PHILIPS ELECTRONICS N.V.</div>
    <div>&#160;</div>
    <div style="MARGIN: 0pt 1in 12pt 1.5in; FONT-SIZE: 11pt" align="left">By: <font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/ Eric
Coutinho&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</font><br>Name: Eric Coutinho<br>Title: General Secretary</div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 36px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify">KNOW ALL MEN BY THESE PRESENTS that each individual whose
signature appears below constitutes and appoints Pamela Dunlap as 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.</div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 36px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify">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 February 22, 2010.</div>
    <div>&#160;</div>
    <div align="left">
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
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            <td valign="top" width="30%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;&#160;</td>
            <td valign="top" width="70%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;&#160;</td>
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            <td valign="top" width="30%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/
      G. J.
      Kleisterlee&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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              <div>&#160;</div>
            </td>
            <td valign="top" width="70%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="left">President/CEO, Chairman of the Board of Management</div>
              <div>&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="30%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;&#160;</td>
            <td valign="top" width="70%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
            </td>
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            <td valign="top" width="30%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/
      P.J.
      Sivignon&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><br>P.J.
      Sivignon</div>
              <div>&#160;</div>
            </td>
            <td valign="top" width="70%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="left"><font style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Executive
      Vice-President, Member of the Board of Management and Chief Financial
      Officer</font></div>
              <div>&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="30%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;&#160;</td>
            <td valign="top" width="70%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
            </td>
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            <td valign="top" width="30%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">
              <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="left"><font style="DISPLAY: inline; TEXT-DECORATION: underline">/s/
      G. H.
      Dutin&#233;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><br>G.
      H. Dutin&#233;</div>
              <div>&#160;</div>
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      Management</div>
              <div>&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="30%" style="PADDING-BOTTOM: 0in; PADDING-LEFT: 0.07in; PADDING-RIGHT: 0.07in; PADDING-TOP: 0in">&#160;&#160;</td>
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      A.
      Ragnetti&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><br>A.
      Ragnetti</div>
              <div>&#160;</div>
            </td>
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              <div>&#160;</div>
            </td>
          </tr></table>
    </div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="center">II-1</div>
    <div>&#160;</div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="TEXT-ALIGN: center; WIDTH: 100%">
        </div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
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    </div>
    <div>&#160;</div>
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        <table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
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      Provoost</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
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              </td>
            </tr><tr>
              <td align="left" valign="top" width="30%">
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              </td>
              <td align="left" valign="top" width="70%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
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              </td>
            </tr><tr>
              <td align="left" valign="top" width="30%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline"><font style="DISPLAY: inline">/s/ J.M.
      Hessels</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">J.M.
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              </td>
              <td align="left" valign="top" width="70%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Chairman
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              </td>
            </tr><tr>
              <td align="left" valign="top" width="30%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
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      Richard
      Greenbury</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Sir
      Richard Greenbury</font></div>
              </td>
              <td align="left" valign="top" width="70%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Member
      of the Supervisory Board</font></div>
              </td>
            </tr><tr>
              <td align="left" valign="top" width="30%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="TEXT-DECORATION: underline"><font style="DISPLAY: inline">/s/ H.
      Von
      Prondzynski</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">H.
      Von Prondzynski</font></div>
              </td>
              <td align="left" valign="top" width="70%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Member
      of the Supervisory Board</font></div>
              </td>
            </tr><tr>
              <td align="left" valign="top" width="30%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="TEXT-DECORATION: underline"><font style="DISPLAY: inline">/s/ J. M.
      Thompson</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">J.
      M. Thompson</font></div>
              </td>
              <td align="left" valign="top" width="70%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Member
      of the Supervisory Board</font></div>
              </td>
            </tr><tr>
              <td align="left" valign="top" width="30%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="TEXT-DECORATION: underline"><font style="DISPLAY: inline">/s/
      C.J.A. van
      Lede</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font>&#160;&#160;&#160;&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">C.J.A.
      van Lede</font></div>
              </td>
              <td align="left" valign="top" width="70%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Member
      of the Supervisory Board</font></div>
              </td>
            </tr><tr>
              <td align="left" valign="top" width="30%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline"><font style="DISPLAY: inline">/s/ E.
      Kist</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">E.
      Kist</font></div>
              </td>
              <td align="left" valign="top" width="70%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Member
      of the Supervisory Board</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
            </tr><tr>
              <td align="left" valign="top" width="30%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline"><font style="DISPLAY: inline">/s/ J.J.
      Schiro</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">J.J.
      Schiro</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
              <td align="left" valign="top" width="70%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Member
      of the Supervisory Board</font></div>
              </td>
            </tr><tr>
              <td align="left" valign="top" width="30%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline"><font style="DISPLAY: inline">/s/ Pamela
      Dunlap</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Pamela
      Dunlap</font></div>
              </td>
              <td align="left" valign="top" width="70%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Duly
      authorized representative in th</font><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">e</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">United
      States</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
            </tr></table>
      </div>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="center">II-2</div>
    <div>&#160;</div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
        </div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt; FONT-WEIGHT: bold" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">SIGNATURE OF THE KONINKLIJKE PHILIPS
ELECTRONICS N.V. NONQUALIFIED STOCK<br>PURCHASE PLAN</font></font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="justify">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 Andover, State of Massachusetts, on
February 22, 2010.</div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2in; FONT-SIZE: 11pt" align="left">KONINKLIJKE PHILIPS ELECTRONICS N.V.<br>NONQUALIFIED STOCK PURCHASE
PLAN</div>
    <div>&#160;</div>
    <div>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2in; FONT-SIZE: 11pt" align="left">By: <font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;&#160;&#160;&#160;
/s/ Pamela
Dunlap&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><br>Name:
Pamela Dunlap<br>Title: Chairman, Stock Purchase Plan Committee</div>
    <div>&#160;</div>
    <div>
    </div>
    <div>&#160;</div>
    <div>
    </div>
    <div>&#160;</div>
    <div>
    </div>
    <div>&#160;</div>
    <div>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="center">II-3</div>
    <div>&#160;</div>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
        </div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="TEXT-ALIGN: center; MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt">INDEX
TO EXHIBITS</div>
    <div>&#160;</div>
    <div>
      <div align="left">
        <table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
              <td valign="top" width="11%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline"><font style="DISPLAY: inline">Exhibit No.</font></font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
              <td valign="top" width="62%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; TEXT-DECORATION: underline"><font style="DISPLAY: inline">Description</font></font></div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
            </tr><tr>
              <td valign="top" width="11%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">4.1</font></div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
              <td valign="top" width="62%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Koninklijke
      Philips Electronics N.V. Nonqualified Stock Purchase Plan</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
            </tr><tr>
              <td valign="top" width="11%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">4.2</font></div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
              <td valign="top" width="62%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Global
      Philips Stock Option Program (part of Royal Philips Electronics Long-Term
      Incentive Plan)</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
            </tr><tr>
              <td valign="top" width="11%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">4.3</font></div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
              <td valign="top" width="62%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Global
      Philips Restricted Share Rights Program (part of Royal Philips Electronics
      Long-Term Incentive Plan)</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
            </tr><tr>
              <td valign="top" width="11%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">23.1</font></div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
              <td valign="top" width="62%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Consent
      of KPMG Accountants NV, an Independent Registered Public Accounting
      Firm</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
            </tr><tr>
              <td valign="top" width="11%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">23.2</font></div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
              <td valign="top" width="62%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Consent
      of KPMG LLP, an Independent Registered Public Accounting Firm</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
            </tr><tr>
              <td align="left" valign="top" width="11%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">24</font></div>
              </td>
              <td align="left" valign="top" width="62%">
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Power
      of attorney (included on signature page).</font></div>
                <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </td>
            </tr></table>
      </div>
    </div>
    <div>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: 0pt; TEXT-INDENT: 0px; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; FONT-SIZE: 11pt" align="left">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</div>
    <div>&#160;</div>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.1
<SEQUENCE>2
<FILENAME>ex_4-1.htm
<DESCRIPTION>NON-QUALIFIED STOCK PURCHASE PLAN
<TEXT>
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    <title>ex_4-1.htm</title>
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    <div style="TEXT-ALIGN: right"><font style="FONT-WEIGHT: bold">Exhibit
4.1</font><br><br></div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Appendix
A</font></div>
    <div style="TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Plan
Specifications for Koninklijke Philips Electronics N.V.</font></div>
    <div style="TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Nonqualified
Stock Purchase Plan</font></div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-ALIGN: right">
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td align="left" valign="middle" width="28%" style="BORDER-BOTTOM: black 4px double; BORDER-TOP: black 3pt solid">
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Plan
      Item</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="middle" width="52%" style="BORDER-BOTTOM: black 4px double; BORDER-TOP: black 3pt solid">
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Specifications</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Plan
      Name</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Koninklijke
      Philips Electronics N.V. Nonqualified Stock Purchase Plan</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
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            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Effective
      Date</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">August
      1, 2000</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="middle" width="52%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
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            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.5pt"></font>&#8220;Affiliate&#8221;</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Present
      or future subsidiary corporation of the Company, where the Company owns
      directly or indirectly at least 50% of the subsidiary
      corporation.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
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            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.5pt"></font>&#8220;Board&#8221;</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Board
      of Management of the Company</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
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            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.5pt"></font>&#8220;Closing Price&#8221;</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Last
      trade of Common Shares on the NYSE for a Trading Date.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.5pt"></font>&#8220;Code&#8221;</font></div>
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            </td>
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Internal
      Revenue Code of 1986, as amended.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.5pt"></font>&#8220;Committee&#8221;</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Committee
      of not less than 3, nor more than 5 members appointed by the Board or its
      designee and responsible for administration of the Plan.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.5pt"></font>&#8220;Common Shares&#8221;</font></div>
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            </td>
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Common
      shares of Koninklijke Philips Electronics N.V.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.5pt"></font>&#8220;Company&#8221;</font></div>
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Koninklijke
      Philips Electronics N.V.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
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      Account&#8221;</font></div>
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            </td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">A
      participant's accumulated payroll deductions in a Participation
      Period.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.5pt"></font>&#8220;Disability&#8221;</font></div>
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            </td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Participant
      leaves active employment of Employer on account of a condition that would
      be treated as a total and permanent disability under Code section
      22(e)(3).&#160;&#160;(See Appendix B for applicable definition for Philips
      Canada employees which replaces the foregoing definition).</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.5pt"></font>&#8220;Earnings&#8221;</font></div>
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
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      Participation Period from salary and wages.</font></div>
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 18pt"><font style="DISPLAY: inline; FONT-FAMILY: symbol, serif; FONT-SIZE: 10pt">&#183;</font><font id="TAB2" style="LETTER-SPACING: 9pt; COLOR: black">&#160;</font><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Salary
      and wages include overtime pay, bonuses (except as provided below),
      holiday pay, vacation pay, and short-term disability
payments.</font></div>
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      401(k).</font></div>
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      effect at the time bonuses are paid.&#160;&#160;Earnings also do not
      include expense reimbursements, deferred compensation, lump sum severance
      payments, stock options, money received for declining medical or dental
      coverage, patent and similar awards, distributions from any long-term
      incentive plan, perquisites, long-term disability payments, payments made
      from an Accident and Sickness program, or any long-term key employee
      compensation program.&#160;&#160;(See Appendix B for applicable definition
      for Philips Canada employees which replaces the foregoing
      definition).</font></div>
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</font></div>
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</font></div>
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</font></div>
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<tr>
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Plan
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="middle" width="52%" style="BORDER-BOTTOM: black 4px double; BORDER-TOP: black 3pt solid">
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Specifications</font></div>
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            </td>
          </tr><tr>
            <td align="left" valign="middle" width="28%">
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            </td>
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      Canada employees which replaces the foregoing definition.)</font></div>
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<tr>
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            </td>
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<tr>
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Plan
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            <td align="left" valign="middle" width="52%" style="BORDER-BOTTOM: black 4px double; BORDER-TOP: black 3pt solid">
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      Period.&#160;&#160;Any balance in the Participant's Contribution Account
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      day of the month following the month of termination.</font></div>
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
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      Shares on the Exercise Date of the Participation Period in which
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      deductions cease at Disability. The balance credited to the Participant's
      Contribution Account shall be used to purchase Common Shares on the
      Exercise Date for the Participation Period in which Disability
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
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          </tr><tr>
            <td align="left" valign="top" width="28%">
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      absence.&#160;&#160;The balance credited to the Participant's Contribution
      Account shall be used to purchase Common Shares on the Exercise Date for
      the Participation Period in which the unpaid leave of absence
      begins.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="52%">
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      rules.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: -27pt; DISPLAY: block; MARGIN-LEFT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Available
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: -27pt; DISPLAY: block; MARGIN-LEFT: 27pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <td align="left" valign="top" width="52%">
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      Plan.&#160;&#160;Such shares will be authorized and issued Common Shares
      held in the Company's treasury or acquired by the Company for the purposes
      of the Plan.&#160;&#160;Any change in the aggregate number of shares
      offered must have shareholder approval.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="28%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
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            <td align="left" valign="top" width="52%">
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      exceeds the maximum number of shares available for the Participation
      Period, the balance credited to the Participant's Contribution Account
      shall be refunded without interest to the Participant by the 30th of the
      month following the end of the Participation Period in which the shortfall
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            </td>
          </tr><tr>
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            </td>
            <td align="left" valign="top" width="52%">
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      the Board to reflect any increase or decrease in the number of issued
      Common Shares resulting from any subdivision or consolidation of shares,
      the payment of any stock dividend, or other increases or decreases in the
      number of outstanding Common Shares effected without the receipt of
      consideration.&#160;&#160;Adjustments shall be made in the sole discretion
      of the Board, whose decision shall be final and
  binding.</font></div>
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          </tr></table>
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<tr>
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      same cash, securities, and/or property which a holder of Common Shares was
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      paid to such Participant in cash shall be reinvested upon their
      distribution (after withholding of applicable Dutch tax) into the
      Participant's Contribution Account and the net amount (after withholding
      tax) used to purchase additional Common Shares at the prevailing market
      price.&#160;&#160;In the event a dividend is paid in cash, such dividend
      shall first be declared in Euros, but will be paid to participants in U.S.
      dollars converted at the rate of exchange on the Amsterdam Stock Exchange
      at the close of business on a date announced by the Company (which is
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      Earnings.&#160;&#160;No Eligible Employee shall be permitted to contribute
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      employees) of payroll deductions to his Contribution Account for all
      Participation Periods during any calendar year.&#160;&#160;This
      contribution is limited, notwithstanding the foregoing, to the extent
      necessary to comply with section 423(b)(8) of the Code, the Company may
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0%.</font></div>
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      purchased under this Plan shall be credited to an account in the
      Participant's name with the Plan's outside administrator designated by the
      Committee. Physical delivery of stock certificates to the Participant is
      not required, but is permitted upon payment of a fee, which is subject to
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</font></div>
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<tr>
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      dispose of any Share Purchase Right shall be null and void and may be
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      Participant's lifetime.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
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      until a certificate is issued to the Participant or the transfer agent for
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              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            </td>
          </tr><tr>
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</font></div>
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          <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
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</font></div>
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    <div style="TEXT-ALIGN: right">
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<tr>
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Plan
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="middle" width="52%" style="BORDER-BOTTOM: black 4px double; BORDER-TOP: black 3pt solid">
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Specifications</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td valign="middle" width="28%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">in
      any way with the right of the Company or any Employer or to discharge or
      retire any Eligible Employee at any time.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: -27pt; DISPLAY: block; MARGIN-LEFT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.3pt"></font>Tax Withholding</font></div>
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      income attributable to the discount will be subject to income tax, FICA
      and other applicable withholding and such amounts will be deducted from
      the Participant's next available paycheck following the purchase of Common
      Shares.&#160;&#160;Alternative withholding arrangements may be made in
      unusual circumstances.&#160;&#160;(See Appendix B for applicable
      definition for Philips Canada employees <font style="DISPLAY: inline; FONT-SIZE: 10pt">which </font>replaces the
      foregoing two sentences).</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
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      Funds</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Proceeds
      received by the Company from the sale of Common Shares will be available
      and used for general corporate purposes.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: -27pt; DISPLAY: block; MARGIN-LEFT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.3pt"></font>Applicable Law</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">The
      obligation to sell and deliver Common Shares shall be subject to all
      applicable laws, regulations, rules and approvals, including, but not
      limited to, effectiveness of a registration statement under the Securities
      Act of 1933, if deemed necessary or appropriate by the
      Company.&#160;&#160;Certificates of Common Shares issued hereunder may be
      legended, as the Company deems appropriate.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="28%"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Questions
      relating to the validity, construction, and administration of the Plan
      shall be determined under the laws of the State of New York.</font></div>
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td align="left" valign="top" width="28%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: -27pt; DISPLAY: block; MARGIN-LEFT: 27pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font id="TAB1" style="MARGIN-LEFT: 22.3pt"></font>Severability</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td align="left" valign="top" width="52%">
              <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">If
      a provision of the Plan is deemed illegal or invalid, the illegality or
      invalidity shall not affect the remaining parts of the
      Plan.&#160;&#160;The Plan shall be construed and enforced as if the
      illegal or invalid provision had not been included in the
      Plan.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="28%" style="BORDER-BOTTOM: black 4px double"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
            <td valign="top" width="52%" style="BORDER-BOTTOM: black 4px double"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">&#160;
      </font></td>
          </tr></table>
    </div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br>&#160;</div>
    <div style="TEXT-ALIGN: right"><br></div>
    <div style="TEXT-ALIGN: right">
      <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="WIDTH: 100%" align="left">
            <div style="TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A-7</font></div>
          </div>
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        </div>
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          <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        </div>
      </div>
    </div>
    <div style="TEXT-ALIGN: right"><br></div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>APPENDIX B &#8211; Plan Specifications for
Philips Canada Employees</font></div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
addition to the &#8220;Plan Specifications&#8221; in Appendix A, the following definitions
and specifications apply to participants employed by Philips Canada. All defined
terms used herein shall have the respective meanings set forth below under
&#8220;Definitions&#8221;, and all defined terms used herein and not defined below shall
retain the meaning assigned to them in Appendix&#160;A.</font><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Participation</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline">Full-Time Employees</font> (except as specifically
indicated below), of Philips Electronics Ltd. and Canadian Affiliates (&#8220;Philips
Canada&#8221;) who are based in Canada are eligible to participate in the <font style="DISPLAY: inline">P</font>lan beginning on the first <font style="DISPLAY: inline">day </font>of the <font style="DISPLAY: inline">first
</font>month <font style="DISPLAY: inline">immediately </font>following<font style="DISPLAY: inline"> a</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font><font style="DISPLAY: inline">period of</font> 90 days <font style="DISPLAY: inline">during which time such employee was at all times
considered a Full-Time Employee (the &#8220;90 Day Requirement&#8221;), which determination
shall be made in the sole discretion of the Committee.</font><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>For purposes of
determining whether a Full-Time Employee has satisfied the 90 Day Requirement,
the Committee shall take into account all service terms of such Full-Time
Employees, which were rendered prior to the date on which Philips Electronics
Ltd. adopted the Plan (the &#8220;Adoption Date&#8221;); provided, however, that this
sentence shall only apply to individuals who are Full-Time Employees as of the
Adoption Date.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Philips
Canada employees covered under a collective agreement will only be eligible to
participate in this Plan at such time as their participation has been negotiated
by Philips Canada and their bargaining unit.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Excluded
Employees are not eligible to participate in the Plan.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">For
purposes of application of the Plan to Participants<font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font>employed by Philips
Canada, the following definitions found in Appendix A of the Plan or herein
shall be read as follows:</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Definitions</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Canadian
Affiliate&#8221;: Present or future affiliated corporations of the Company carrying on
business in and from Canada, registered and resident in Canada and in which the
Company owns directly or indirectly at least 50% of the affiliated
corporation.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Disability&#8221;:&#160;&#160;A
Participant will be considered to have a disability if such Participant is
considered to have a &#8220;disability&#8221; under the applicable plan in which it
participates or under which the Participant is covered for purposes of receiving
disability coverage or benefits, whether such plan is provided by Philips Canada
or any Canadian governmental agency or body.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Earnings&#8221;:
Earnings include salary, bonus payment (the bonus payments must be made pursuant
to a formalized, written individual bonus plan) and commission. Earnings does
not include any </font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div style="TEXT-ALIGN: center; WIDTH: 100%">
        <div style="TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">B-1</font></div>
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      <div id="FTR">
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        </div>
      </div>
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        <div style="TEXT-ALIGN: center; WIDTH: 100%">
        </div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
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        </div>
      </div>
    </div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">other
forms of compensation such as, overtime, group bonus plans, profit sharing or
improvement plans, vacation pay, expense reimbursements, severance payments,
payments in lieu of notice, stock options, deferred compensation, distributions
from any long term incentive plan, perquisites, long term disability payments,
payments from an accident or sickness program, whether paid by Philips Canada or
by any applicable government or regulatory organization such as workers
compensation, monetary or non monetary performance or seniority awards,
etc.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Eligibility&#8221;:
Each Eligible Employee may become a Participant on the first day of the first
month immediately following a period of 90 days during which time such employee
was at all times considered a Full-Time Employee, which determination shall be
made in the sole discretion of the Committee, except that an Eligible Employee
covered under a collective agreement will only be eligible for participation in
this Plan at such time as their participation has been negotiated by Philips
Canada and their bargaining unit.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Eligible
Employee&#8221;: Each Canadian based Full-Time Employee, whether paid on an hourly or
salaried basis.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Full-Time
Employee&#8221;: An employee of Philips Canada who is regularly scheduled to work at
least 35 hours per week, who is not a temporary or contract employee, nor a
unionized employee.</font><br>&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8220;Philips
Canada&#8221;: Philips Electronics Ltd. and its Canadian Affiliates.</font></div>
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Provisions</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Tax Withholding</font></font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">On the
date of purchase of shares, a Participant would owe ordinary income tax on the
difference between the closing market price per share and what the Participant
actually pays for each share in the program.&#160;&#160;Taxes are withheld from
the Participant&#8217;s next available paycheque after the purchase
date.&#160;&#160;Both the benefit per share and the tax withheld are reflected
on that cheque and included in the year-end T-4 and Releve 1 (Quebec taxpayers
only) statement.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Currency</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><br><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">As the
Company&#8217;s stock trades in U.S. dollars, payroll deductions will be converted to
U.S. dollars at the prevailing rate at the time of purchase of the shares. In
addition to changes in stock price, there is also a currency
risk.&#160;&#160;Because the Company's shares trade in U.S. dollars, the value
of the shares will fluctuate in relation to the Canadian dollar.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Certain
Canadian Federal and Provincial Income Tax Consequences</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
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following tax discussion is for general guidance and may change over time.
Participants are advised to consult their tax advisor for more detailed
information.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
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        <div style="TEXT-ALIGN: center; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">B-2</font></div>
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    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="FONT-STYLE: italic; DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Purchasing
Shares</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">When
shares are purchased, the 15% discount is taxable as ordinary income and is
subject to federal and provincial income taxes as well as
CPP/QPP.&#160;&#160;Taxes will be automatically withheld from the Participants&#8217;
next available paycheque following the stock purchase in accordance with their
regular tax withholding elections.&#160;&#160;If a Participant is not actively
receiving a paycheque he/she will receive a net zero paycheque to reflect the
taxes.&#160;&#160;The ordinary income amount will be included in the T-4 and
Releve 1 (Quebec taxpayers only) statement for the year.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Reinvested
Dividends</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Participants
will be subject to Canadian income tax on reinvested dividends in the year the
dividends are issued.&#160;&#160;Non-resident tax of 15% will be withheld on
reinvested dividends in the year the dividends are issued. Participants will be
issued the appropriate tax form on or around February 28 of the following year
covering the dividend and the non-resident tax deducted.&#160;&#160;The deducted
non-resident tax can normally be used as a credit against Canadian taxes owing
in respect of the reinvested dividends.&#160;&#160;The tax credit may be claimed
when filing the personal income tax return in April of the following
year.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Selling
Shares</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><br><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">When
Participants sell their shares, Canada Revenue Agency (CRA) requires
Participants to report these activities on their annual tax return. Any further
gain/loss after the purchase of these shares will be taxed as a capital gain or
loss.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A capital
gain occurs when a Participant sells stock for a higher price than the adjusted
cost base of the stock.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">A capital
loss occurs when a Participant sells stock for a lower price than the adjusted
cost base of the stock.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
general, the adjusted cost base of a particular share will be the weighted
average purchase price for all the Philips Canada shares owned by a Participant,
both within the Participant&#8217;s account and outside of it (except for shares held
in any trusteed accounts like RRSPs).&#160;&#160;For example, if the Participant
purchased 10 shares for $30.00 in one&#160;Participation&#160;Period and then
purchased 5 shares at $40.00 in the next&#160;Participation&#160;Period, the
adjusted cost base for each share following the
second&#160;Participation&#160;Period would be $33.33 (i.e. [(10 x $30.00) + (5
x $40.00)] &#247; 15.</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Canadian
Securities Laws</font></div>
    <div style="TEXT-ALIGN: left; LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><br><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Participation
in the Plan is voluntary and is subject to the conditions set forth herein and
in Appendix A.&#160;&#160;Shares acquired under the Plan by employees of Philips
Canada may only be sold through the facilities of the New York Stock
Exchange.</font></div>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-4.2
<SEQUENCE>3
<FILENAME>ex_4-2.htm
<DESCRIPTION>GLOBAL PHILIPS STOCK OPTION PROGRAM
<TEXT>
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    <div style="TEXT-ALIGN: right"><font style="FONT-WEIGHT: bold">Exhibit
4.2</font><br></div>
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        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              <div style="LINE-HEIGHT: 18.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 16pt; FONT-WEIGHT: bold">Global
      Philips Stock Option Program</font></div>
              <div style="LINE-HEIGHT: 15.95pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr></table>
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;</font></div>
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        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="WIDTH: 100%; HEIGHT: 53px" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
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              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <hr style="COLOR: black" align="left" noshade size="1" width="100%">
            </div>
          </div>
        </div>
      </div>
    </div><br>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">TERMS
AND CONDITIONS</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">OF</font></div>
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PHILIPS STOCK OPTION PROGRAM</font></div>
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
1</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Definitions</font></div>
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In this
Global Philips Stock Option Program the following definitions shall
apply:</font></div>
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            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">1.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Closing
      Price</font></div>
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            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="40%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">the
      price of a Share with dividend, if any, at the closing of the Official
      Segment of Euronext Amsterdam N.V.&#8217;s stock market (&#8220;Euronext Amsterdam&#8221;)
      as published in the Official Price List of this stock
      exchange.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </div>
            </td>
          </tr><tr>
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">2.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
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          </tr><tr>
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            </td>
            <td valign="top" width="23%">
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            <td valign="top" width="6%">
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="40%">
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
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              </div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">5.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="6%">
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            </td>
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      an Option. Such price will be equal to the Closing Price on the applicable
      Date of Grant.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
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              </div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">6.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Option</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="40%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">a
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      the terms and conditions hereof.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">7.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Option
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            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="40%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">a
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">8.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Option
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="40%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">the
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3.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">9.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Philips</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="40%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Koninklijke
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">10.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Program</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="40%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">this
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            </td>
          </tr></table>
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            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
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                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
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9</font></div>
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          <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
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        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
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</font></div>
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    <div style="WIDTH: 100%; HEIGHT: 53px" align="left">
      <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
          <div>
            <hr style="COLOR: black" align="left" noshade size="1" width="100%">
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HRM/Global Reward</font></div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
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        </div>
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    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="40%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">a
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
                <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
              </div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">12.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="23%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Share
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              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
            <td valign="top" width="40%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">The
      price of a Share with dividend, if any, at the Amsterdam Euronext Stock
      Exchange or the New York Stock Exchange, whichever is applicable, at the
      moment of exercise of an Option in accordance with Article 9 of this
      Program.</font></div>
              <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
2</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Acquisition
of Options</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Options
may be granted to an eligible individual, subject to the (acceptance by such
individual of the) terms and conditions of this Program and any other Philips&#8217;
policies or guidelines that may apply to such individual. 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.</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
3</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Restrictions
on Exercise and Option Period</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Options
      shall not be exercisable before the third anniversary of the Date of
      Grant. Unvested or lapsed Options cannot be
  exercised.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      Option Period is in principle ten (10) years commencing on the Date of
      Grant, subject to this Article 3.2 and Article 4. Upon request of an
      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 (3)
  years.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Options
      may in principle 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&#160;4.</font></div>
                </td>
              </tr></table><br><br></div>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
4</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Termination
of Employment</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Except
      as otherwise 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&#8217;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's employment with the
Employing</font></div>
                </td>
              </tr></table>
        </div>
      </div><br>
      <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; HEIGHT: 131px; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="WIDTH: 100%" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;3&#160;of
9</font></div>
            </div>
            <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
          </div>
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="WIDTH: 100%; HEIGHT: 53px" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
          </div>
        </div>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Company
      without the Option Holder being entitled to any compensation or any
      obligation on the part of Philips or any Employing Company 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.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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&#8217;s employment with an Employing Company for reasons of (i)
      disablement, (ii) retirement&#160;&#160;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 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. For the purpose
      of this Program, an Option Holder&#8217;s employment shall be deemed terminated
      as a result of &#8220;retirement&#8221; if such Option Holder&#8217;s employment is
      terminated and such Option Holder satisfies at the date of such
      termination the eligibility requirements to receive an immediate (early)
      retirement benefit under an (early) retirement plan of an Employing
      Company under which such Option Holder was covered,
      provided&#160;&#160;(i) payment of such (early) retirement benefit
      commences immediately following such termination, and provided further
      (ii) that if such Option Holder is covered by an US retirement plan, such
      Option Holder must have at least five years of service with an US
      Employing Company and have attained the age of fifty-five (55)
      years.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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&#8217;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 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. In the event that the remaining Option
      Period as from the date of termination is 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, provided that the Options shall only be exercisable
      in the manner as set forth in Article
9.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
      case the employment of an Option Holder with any Employing Company is
      terminated as a result of the sale or other divestment of a business,
      subsidiary, division or other business unit of Philips or subsidiary or
      any part thereof (&#8220;Divested Business&#8221;) and the Option Holder remains
      employed by the Divested Business upon such transfer, 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.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Upon
      termination of the employment of the Option Holder with the Divested
      Business, the terms of Article 4.1, 4.2 and 4.3 shall apply mutatis
      mutandis, it being</font></div>
                </td>
              </tr></table>
        </div>
      </div><br>
      <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="WIDTH: 100%" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;4&#160;of
9</font></div>
            </div>
            <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
          </div>
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="WIDTH: 100%; HEIGHT: 53px" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
          </div>
        </div>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">expressly
      understood that in case such Option Holder becomes re-employed by any
      Employing Company immediately upon such termination, any Options held by
      the Option Holder at such time shall not be forfeited, but shall remain
      exercisable for the remainder of the term of such Options as determined
      pursuant to this Article 4.4, subject to the terms and conditions of this
      Program.</font></div>
                </td>
              </tr></table>
        </div>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
5</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Non-transferability</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
6</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Exercise
of Options</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 9pt">
              </td>
              <td style="WIDTH: 21.3pt">
                <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
      notice shall state:</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td align="right" style="WIDTH: 45pt">
                <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">a.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
      Date of Grant of the Options he wishes to
  exercise;</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td align="right" style="WIDTH: 45pt">
                <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">b.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">if
      applicable, the confirmation that the Option Holder wants to limit the
      Option Period pursuant to Article
3.2;</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td align="right" style="WIDTH: 45pt">
                <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">c.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
      number of Options to be exercised;
and</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top">
              <td align="right" style="WIDTH: 45pt">
                <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">d.&#160;&#160;</font></div>
              </td>
              <td>
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">whether
      Shares to be obtained upon such
exercise:</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 42.7pt">
                <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(i)</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">be
      sold, on behalf of the Option Holder as soon as possible. Upon such sale,
      the aggregate revenue of the Shares sold upon exercise of the Options less
      the Grant Price multiplied by the number of such Options, and further
      costs, will be paid to the Option Holder in accordance with a procedure
      determined by Philips; or</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 42.7pt">
                <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
              </td>
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">(ii)</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">be
      delivered to the Option Holder as provided for in the Articles 6.3 and
      6.4.</font></div>
              </td>
            </tr></table>
      </div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 42.6pt">
                <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
      case the Option Holder elects to have the Shares to be delivered to him,
      his notice shall be accompanied by the payment in full of the Grant Price,
      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.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Philips
      may require an Option Holder to maintain a Custody 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
      Custody Account for any Option
Holder.</font></div>
              </td>
            </tr></table>
      </div><br>
      <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="WIDTH: 100%" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;5&#160;of
9</font></div>
            </div>
            <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
          </div>
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="WIDTH: 100%; HEIGHT: 53px" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
          </div>
        </div>
      </div><br>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Subject
      to the terms and conditions of this Program, if the Option Holder elects
      the Share to be delivered to him upon exercise as provided in Article
      6.1.d (ii), Philips will deliver a Share to an Option Holder 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 any
Options.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">If
      the Option Holder elects to have Shares to be delivered to him pursuant to
      Article 6.1.d (ii), such Shares will be credited to the Option Holder&#8217;s
      Custody Account except if an Option Holder does not maintain a Custody
      Account at the date of delivery of such Shares. In case 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.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Each
      Option Holder shall comply with any applicable &#8220;insider trading&#8221; laws and
      regulations and the Philips&#8217; Rules of Conduct with respect to Inside
      Information.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
7</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Capital
Dilution</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div><br>
      <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="WIDTH: 100%" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;6&#160;of
9</font></div>
            </div>
            <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
          </div>
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="WIDTH: 100%; HEIGHT: 53px" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
          </div>
        </div>
      </div><br>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
8</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Costs
and Taxes</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">All
      costs of delivering any Shares under this Program to an Option Holder&#8217;s
      Custody Account and any other costs connected with the Shares shall be
      borne by the Option Holder.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Any
      and all taxes, duties, levies, charges or social security contributions
      (&#8220;Taxes&#8221;) 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<font style="FONT-STYLE: italic; DISPLAY: inline">&#160;</font>and/or the sale
      of any Shares acquired under this Program) shall be for the sole risk and
      account of the Option Holder.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Philips
      and its subsidiaries shall have the right to deduct or 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).</font></div>
              </td>
            </tr></table>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
              <td style="WIDTH: 27pt">
                <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.</font></div>
              </td>
              <td>
                <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Philips
      shall not be required to deliver any Shares and Philips may delay (or
      cause to be delayed) the transfer of any Shares 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 any costs to be borne by the Option Holder in connection
      with this Program as determined by
Philips.</font></div>
              </td>
            </tr></table>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
9</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Cash
Alternative</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Upon
receipt of a notice, as referred to in Article 6.1 hereof to exercise any
Option, Philips 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 Euros or in U.S.
Dollars, depending on where the Shares being the subject of the exercised Option
are traded, equal to the Share Price 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
Euronext Amsterdam or the New York Stock Exchange, whichever is applicable, the
Share Price will be the opening price of the first subsequent trading day on
Euronext Amsterdam or the New York Stock Exchange, whichever is applicable. 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.</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div><br>
      <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="WIDTH: 100%" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;7&#160;of
9</font></div>
            </div>
            <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
          </div>
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="WIDTH: 100%; HEIGHT: 53px" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
          </div>
        </div>
      </div><br>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
10</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">General
Provisions</font></div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
      <div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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,
      except to the extent any such action would require shareholder approval
      under applicable law, rules or regulation. The terms and conditions in
      force from time to time are published on the Philips&#8217; intranet and on the
      website of the administrator of this Program and apply to any and all
      Option granted under this Program. Philips may delegate the authority to
      practice administrative and operational functions with respect to the
      Program to officers or employees of subsidiaries of Philips and to service
      providers.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">If
      equity-based incentive compensation under this Program has been granted on
      the basis of incorrect financial or other data, Philips and the Employing
      Company may in its sole discretion but acting in good faith, resolve to
      recoup some or all of such incentive compensation -including any benefits
      derived therefrom- in all appropriate cases (taking into account all
      relevant factors, including whether the assertion of a recoupment claim
      may in its opinion prejudice the interests of Philips and its group
      companies in any related proceeding or investigation), granted to an
      individual under this Program, if and to the extent
  that:</font></div>
                </td>
              </tr></table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 63pt">
                  <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
                </td>
                <td style="WIDTH: 18pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">a.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
      size of the equity-based incentive grant was calculated based upon the
      achievement of certain financial or other data that were subsequently
      reduced or changed due to a correction thereof resulting from errors,
      omissions, fraud or otherwise, and</font></div>
                </td>
              </tr></table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 63pt">
                  <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
                </td>
                <td style="WIDTH: 18pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">b.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
      size of such grant that would have awarded to you, had the financial or
      other data been properly reported would have been lower than the amount
      actually awarded.</font></div>
                </td>
              </tr></table>
        </div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">By
      accepting any grants under this Program, the individual concerned agrees
      to fully co-operate with Philips and the Employing Company in order to
      give effect to this article.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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, as applicable, on the day on which these Shares are
      delivered.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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&#8217;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.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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 employed with any Employing Company, or to be entitled to any
      remuneration or</font></div>
                </td>
              </tr></table>
        </div>
      </div><br>
      <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div style="WIDTH: 100%" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;8&#160;of
9</font></div>
            </div>
            <div style="LINE-HEIGHT: 11.4pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
          </div>
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="TEXT-ALIGN: center; WIDTH: 100%">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
          <div style="WIDTH: 100%; HEIGHT: 53px" align="left">
            <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div>
                  <hr style="COLOR: black" align="left" noshade size="1" width="100%">
                </div>
              </div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
          </div>
        </div>
      </div>
      <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">benefits
      not set forth in this Program or interfere with or limit in any way with
      the right of any Employing Company or any of its subsidiaries to terminate
      such Option Holder&#8217;s employment or to discharge or retire any Option
      Holder at any time.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Where
      the context requires, words in either gender shall include also the other
      gender.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div>
          <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
                <td style="WIDTH: 27pt">
                  <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.</font></div>
                </td>
                <td>
                  <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
                </td>
              </tr></table>
        </div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
        <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#8226; &#8226; &#8226; &#8226;
&#8226;</font></div>
      </div>
      <div>
        <div>
          <div>
            <div>&#160;</div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
            <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div><br>
            <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
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<DOCUMENT>
<TYPE>EX-4.3
<SEQUENCE>4
<FILENAME>ex_4-3.htm
<DESCRIPTION>GLOBAL PHILIPS RESTRICTED SHARE RIGHTS PROGRAM
<TEXT>
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            <div style="TEXT-ALIGN: right"><font style="FONT-WEIGHT: bold">Exhibit
4.3</font></div>
            <div>&#160;</div>
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HRM/Global Reward</font></div>
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              <div style="LINE-HEIGHT: 18.25pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 16pt; FONT-WEIGHT: bold">Global
      Philips Restricted Share Rights Program</font></div>
              <div style="LINE-HEIGHT: 15.95pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
            </td>
          </tr></table>
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            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
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            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
          </div>
          <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
            <div>
              <hr style="COLOR: black" align="left" noshade size="1" width="100%">
            </div>
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">TERMS
AND CONDITIONS</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">OF</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">GLOBAL
PHILIPS RESTRICTED SHARE RIGHTS PROGRAM</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
1</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Definitions</font></div>
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In this
Global Philips Restricted Share Program the following definitions shall
apply:</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">1.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Custody
      Account</font></div>
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">a
      custody account maintained in the name of a Participant other than a
      Nominee Account.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">2.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Date
      of Grant</font></div>
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">the
      date at which a Restricted Share Right is granted pursuant to this
      Program. The Dates of Grant of any Restricted Share Rights shall be the
      same dates as the dates of publication of the Philips&#8217; annual and/or
      quarterly results over the financial year concerned. The relevant Date of
      Grant and categorization of any Restricted Share Right with respect to any
      grant hereunder shall be determined by Philips.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
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            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">3.</font></div>
            </td>
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Delivery
      Date</font></div>
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">depending
      on whether a Restricted Share Right is categorized as a &#8220;1 Year Term
      Restricted Share Right&#8221;, &#8220;2 Year Term Restricted Share Right&#8221; or &#8220;3 Year
      Term Restricted Share Right&#8221;, the Delivery Date shall be the first, second
      or third anniversary of the Date of Grant of such Restricted Share
      Right.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
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            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">4.</font></div>
            </td>
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              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Employing
      Company</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">any
      company within the Philips group of companies&#160;&#160;and such other
      company as Philips may from time to time designate or
approve.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">5.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Nominee
      Account</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">a
      custody account maintained in the name of a Participant established by an
      administrator designated by Philips.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">6.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Premium
      Date</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">the
      date which is three years after the applicable Delivery Date.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">7.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Premium
      Shares</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">any
      Shares (to be) delivered to a Participant pursuant to Article 7
      hereof.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">8.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Retainment
      Period</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">the
      period commencing on the Delivery Date applicable to a particular
      Restricted Share Right and ending on the Premium Date applicable to such
      Restricted Share Right.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div><br>
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8</font></div>
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</font></div>
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
          </div>
          <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
            <div>
              <hr style="COLOR: black" align="left" noshade size="1" width="100%">
            </div>
          </div>
        </div>
      </div>
    </div><br>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">9.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Participant</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">an
      individual who has accepted any Restricted Share Rights under this
      Program.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">10.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Philips</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Koninklijke
      Philips Electronics N.V.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">11.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Program</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">this
      Global Philips Restricted Share Rights Program.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">12.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Restricted
      Share Right</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">the
      conditional right granted to a Participant to receive one Share, subject
      to the terms and conditions of this Program. Restricted Share Rights will
      be categorized as &#8220;1 Year Term Restricted Share Rights&#8221;, &#8220;2 Year Term
      Restricted Share Rights&#8221; or &#8220;3 Year Term Restricted Share Rights&#8221;, as
      applicable.</font></div>
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
            </td>
          </tr><tr>
            <td valign="top" width="4%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">13.</font></div>
            </td>
            <td valign="top" width="22%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">Share</font></div>
            </td>
            <td valign="top" width="6%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">:</font></div>
            </td>
            <td valign="top" width="41%">
              <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">a
      common share of Philips (to be) delivered under this
    Program.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
2</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Grant
of Restricted Share Rights</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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 and
any other Philips&#8217; policies or guidelines that may apply to such individual. 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.</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
3</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Termination
of Employment</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Except
      as otherwise 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&#8217;s employment with an Employing Company for
      any reason whatsoever prior to the applicable Delivery Date, such
      Participant&#8217;s Restricted Share Rights shall be forfeited effective as of
      the date of termination of such Participant's employment with the
      Employing Company without the Participant being entitled to any
      compensation or any obligation on the part of Philips or any Employing
      Company 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.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
      case a Participant is no longer employed by any Employing Company as a
      result of the termination of such Participant&#8217;s employment with an
      Employing Company for reasons of (i) death, (ii) disablement, (iii) legal
      incapacity, (iv) retirement or
(v)</font></div>
            </td>
          </tr></table>
    </div><br>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;3&#160;of
8</font></div>
          </div>
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
          </div>
          <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
            <div>
              <hr style="COLOR: black" align="left" noshade size="1" width="100%">
            </div>
          </div>
        </div>
      </div>
    </div><br>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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 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 the terms and conditions of this Program. For the purpose of this
      Program, a Participant&#8217;s employment shall be deemed terminated as a result
      of &#8220;retirement&#8221; if such Participant&#8217;s employment is terminated and such
      Participant satisfies at the date of such termination the eligibility
      requirements to receive an immediate (early) retirement benefit under an
      (early) retirement plan of an Employing Company under which such
      Participant was covered, provided (i) payment of such (early) retirement
      benefit commences immediately following such termination, and provided
      further (ii) that if such Participant is covered by an US retirement plan,
      such Participant must have at least five years of service with an US
      Employing Company and have attained the age of fifty-five (55)
      years.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
      case the employment of a Participant with any Employing Company is
      terminated as a result of the sale or other divestment of a business,
      subsidiary, division or other business unit of Philips or any part thereof
      (&#8220;Divested Business&#8221;) and the Participant remains employed by the Divested
      Business upon such transfer, 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 the terms and conditions of
      this Program.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">In
      case of termination of employment of a Participant with any Employing
      Company as a result of such sale or other divestment, the Participant
      shall no longer be eligible to receive any Premium
  Shares.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Upon
      termination of the employment of the Participant with the Divested
      Business, the terms of Article 3.1 and 3.2 shall apply mutatis mutandis,
      it being expressly understood that in case such Participant becomes
      re-employed by any Employing Company immediately upon such termination,
      such Participant shall remain entitled to any Restricted Share Rights held
      by such Participant at such time subject to the terms and conditions of
      this Program.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
4</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Non-transferability</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">The
Restricted Share Rights are strictly personal and may not be assigned,
transferred (except that, in case of death of the Participant any Restricted
Share Rights granted to such Participant 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 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 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.</font></div><br>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;4&#160;of
8</font></div>
          </div>
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
          </div>
          <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
            <div>
              <hr style="COLOR: black" align="left" noshade size="1" width="100%">
            </div>
          </div>
        </div>
      </div>
    </div><br>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
5</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Delivery
and Holding of Shares</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Subject
      to the terms and conditions of this Program, and further to the
      Participants election via the website, Philips will deliver a Share
      pursuant to a Restricted Share Right 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.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Any
      Shares to be delivered pursuant to Article 5.2 will be credited to the
      Nominee Account.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Except
      as may be otherwise 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 estate or legal
      representatives, as the case may be) shall withdraw all Shares credited to
      the Participant&#8217;s Nominee Account within two (2) months of the date of
      such termination. In case the Participant (or his or her estate or legal
      representatives, as the case may be) fails to comply with the foregoing
      obligation, then the Participant (or his or her estate or legal
      representatives, as the case may be) shall be deemed to have requested
      Philips to sell or cause to sell such
Shares.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Each
      Participant shall comply with any applicable &#8220;insider trading&#8221; laws and
      regulations and the Philips&#8217; Rules of Conduct with respect to Inside
      Information.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
6</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Capital
Dilution</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div><br>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;5&#160;of
8</font></div>
          </div>
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
          </div>
          <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
            <div>
              <hr style="COLOR: black" align="left" noshade size="1" width="100%">
            </div>
          </div>
        </div>
      </div>
    </div><br>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
7</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Premium
Shares</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">At a
Premium Date, Philips will deliver a number of Premium Shares, which is equal to
20 % (twenty percent) of the number of Shares acquired by a Participant pursuant
to the Restricted Share Rights, 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&#8217;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 upward to the next whole Share.</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
8</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Costs
and Taxes</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">All
      costs of delivering any Shares, including, but not limited to, any Premium
      Shares, under this Program to a Participant&#8217;s Custody Account and any
      other costs connected with the Shares shall be borne by the
      Participant.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Any
      and all taxes, duties, levies, charges or social security contributions
      (&#8220;Taxes&#8221;) 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.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Philips
      and any other Employing Company shall have the right to deduct or withhold
      (or cause to be deducted or withheld) from any salary payment or other
      sums due by Philips or any other Employing Company to Participant, or
      requiring the Participant or beneficiary of the Participant, to pay to
      Philips an amount necessary to settle any Taxes and any costs determined
      by Philips necessary to be withheld in connection with this Program
      (including, but not limited to, the grant of the Restricted Shares Rights
      or the delivery of any Shares (including, but not limited to, Premium
      Shares) under this Program).</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Philips
      shall not be required to deliver any Shares and Philips may delay (or
      cause to be delayed) the transfer of 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 any costs to be borne by the Participant in
      connection with this Program as determined by
  Philips.</font></div>
            </td>
          </tr></table>
    </div><br>
    <div id="PGBRK" style="TEXT-INDENT: 0pt; WIDTH: 100%; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;6&#160;of
8</font></div>
          </div>
        </div>
        <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
          </div>
          <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
            <div>
              <hr style="COLOR: black" align="left" noshade size="1" width="100%">
            </div>
          </div>
        </div>
      </div>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Philips
      is herewith authorised by the Participant to sell (part of) Participant&#8217;s
      Shares credited to a Nominee Account and to maintain such part of the
      proceeds of this sale as payment to Philips necessary to satisfy any
      withholding of any Taxes and any costs to be borne by the Participant in
      connection with this Program as determined by
  Philips.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
9</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Dividend
Payment on Shares</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Article
10</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">General
Provisions</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">1.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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,
      except to the extent any such action would require shareholder approval
      under applicable law, rules or regulation. The terms and conditions in
      force from time to time are published on the Philips&#8217; intranet and on the
      website of the administrator of this Program and apply to any and all
      Restricted Share Rights granted under this Program. Philips shall further
      have the authority to waive, in its sole discretion, 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. Philips may delegate the authority to practice administrative
      and operational functions with respect to the Program to officers or
      employees of subsidiaries of Philips and to service
    providers.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">2.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">If
      equity-based incentive compensation under this Program has been granted on
      the basis of incorrect financial or other data, Philips and the Employing
      Company may in its sole discretion but acting in good faith, resolve to
      recoup some or all of such incentive compensation -including any benefits
      derived therefrom- in all appropriate cases (taking into account all
      relevant factors, including whether the assertion of a recoupment claim
      may in its opinion prejudice the interests of Philips and its group
      companies in any related proceeding or investigation), granted to an
      individual under this Program, if and to the extent
  that:</font></div>
            </td>
          </tr></table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 108pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 9pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">i.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
      size of the equity-based incentive grant was calculated based upon the
      achievement of certain financial or other data that were subsequently
      reduced or changed due to a correction thereof resulting from errors,
      omissions, fraud or otherwise, and</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div><br>
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              <div>
                <hr style="COLOR: black" align="left" noshade size="1" width="100%">
              </div>
            </div>
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Page&#160;7&#160;of
8</font></div>
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</font></div>
      </div>
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        <div style="TEXT-ALIGN: center; WIDTH: 100%"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="TEXT-ALIGN: center; WIDTH: 100%">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 8pt">&#160;
</font></div>
        <div style="WIDTH: 100%" align="left">
          <div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt">
            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
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            <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">Corporate
HRM/Global Reward</font></div>
          </div>
          <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block">
            <div>
              <hr style="COLOR: black" align="left" noshade size="1" width="100%">
            </div>
          </div>
        </div>
      </div>
    </div><br>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 108pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td style="WIDTH: 9pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">ii.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the
      size of such grant that would have awarded to you, had the financial or
      other data been properly reported would have been lower than the amount
      actually awarded.</font></div>
            </td>
          </tr></table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">By
      accepting any grants under this Program, the individual concerned agrees
      to fully co-operate with Philips and the Employing Company in order to
      give effect to this article.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;
      </font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Furthermore
      by accepting any grants under this Program, the individual provides an
      irrevocable power of attorney to Philips and the Employing Company to
      transfer any Shares held by such individual in the account administered by
      Philips&#8217; global Program administrator and any other acts necessary or
      desirable to give effect to this article. This power of attorney is
      governed by Dutch law exclusively.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">3.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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, as applicable, on the day on which these Shares are
      delivered.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">4.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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&#8217;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.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">5.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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 any Employing Company to terminate
      such Participant&#8217;s employment or to discharge or retire a Participant at
      any time.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
<tr valign="top" style="LINE-HEIGHT: 13.7pt;">
            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">6.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">7.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Where
      the context requires, words in either gender shall include also the other
      gender.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">
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            <td style="WIDTH: 27pt">
              <div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">8.</font></div>
            </td>
            <td>
              <div align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">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.</font></div>
            </td>
          </tr></table>
    </div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>5
<FILENAME>ex_23-1.htm
<DESCRIPTION>CONSENT OF KPMG ACCOUNTANTS NV
<TEXT>
<html>
<head>
    <title>ex_23-1.htm</title>
<!-- Licensed to: Sullivan & Cromwell LLP-->
<!-- Document Created using EDGARizer 5.1.4.0 -->
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<body bgcolor="#ffffff" style="DISPLAY: inline; FONT-FAMILY: 'TIMES NEW ROMAN'; FONT-SIZE: 11pt"><br>
    <div style="LINE-HEIGHT: 0pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Exhibit
23.1</font></div>
    <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="LINE-HEIGHT: 15.95pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="LINE-HEIGHT: 15.95pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 12pt; FONT-WEIGHT: bold">Consent
of independent registered public accounting firm</font></div>
    <div style="LINE-HEIGHT: 15.95pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="LINE-HEIGHT: 14pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">To the
Supervisory Board of Koninklijke Philips Electronics N.V.</font></div>
    <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
    <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
consent to the use of our reports dated February 22, 2010 with respect to the
consolidated balance sheets of Koninklijke Philips Electronics N.V. and
subsidiaries as of December 31, 2009 and 2008, and the related consolidated
statements of income, comprehensive income, changes in equity and cash flows for
each of the years in the three-year period ended December 31, 2009, and the
related financial statement schedule, and the effectiveness of internal control
over financial reporting as of December 31, 2009, incorporated herein by
reference, which reports appear in the December 31, 2009 annual report on Form
20-F of Koninklijke Philips Electronics N.V.</font></div>
    <div style="LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="LINE-HEIGHT: 14pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Our
report dated February 22, 2010 on the effectiveness of internal control over
financial reporting as of December 31, 2009 contains an explanatory paragraph
that states that Meditronics Healthcare Pvt. Ltd, Dynalite Intelligent Light
Pty. Limited, Ilti Luce S.r.l., Teletrol Systems Inc., Traxtal Inc., and Saeco
International Group S.p.A., which companies were acquired during 2009, have been
excluded from management&#8217;s assessment of and our evaluation of the effectiveness
of internal control over financial reporting as of December 31,
2009.&#160;</font></div>
    <div style="LINE-HEIGHT: 14pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
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Accountants N.V.</font></div>
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the Netherlands</font></div>
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22, 2010</font></div>
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<DOCUMENT>
<TYPE>EX-23.2
<SEQUENCE>6
<FILENAME>ex_23-2.htm
<DESCRIPTION>CONSENT OF KPMG LLP
<TEXT>
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    <div style="TEXT-ALIGN: right; LINE-HEIGHT: 12.55pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Exhibit
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">CONSENT
OF<font style="DISPLAY: inline; FONT-SIZE: 10pt">&#160;</font>INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</font></div>
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block"><br></div>
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">To the
Supervisory Board of Koninklijke Philips Electronics N.V. and</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">the Stock
Purchase Plan Committee of Koninklijke Philips Electronics N.V.</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">&#160;&#160;&#160;&#160;&#160;Nonqualified
Stock Purchase Plan</font></div>
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">We
consent to the use of our report dated October 29, 2009, with respect to the
statements of financial condition of the Koninklijke Philips Electronics N.V.
Nonqualified Stock Purchase Plan as of July 31, 2009 and 2008 and the related
statements of income (loss) and changes in plan equity for each of the years in
the three-year period ended July 31, 2009, incorporated herein by reference,
which report appears in the July 31, 2009 annual report on Form 11-K of the
Koninklijke Philips Electronics N.V. Nonqualified Stock Purchase
Plan.</font></div>
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    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">/s/ KPMG
LLP</font></div>
    <div style="LINE-HEIGHT: 13.7pt; TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">Boston,
Massachusetts</font></div>
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19, 2010</font></div><br>
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</font></div>
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