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                                OPTION AGREEMENT

         Agreement made this 25th day of January 1999 among and between Franklin
S. Felber, having an address at 13472 Calle Colina, Poway, CA 92064 ("Felber"),
Jyra Research Inc., having an address at Hamilton House, 111 Marlowes, Hemel
Hempstead HP1 1BB, England ("Jyra"), and, as to paragraphs (2), (3) and (5)
only, Path 1 Network Technologies Inc., having an address at Suite 230, 9339
Genesee Avenue, San Diego, CA 92121 ("Path 1").

         WHEREAS, Felber desires to sell a portion of shares of Path 1
beneficially owned by him ("Shares") and

         WHEREAS Felber is willing to grant Jyra an option to purchase said
Shares, and

         WHEREAS Jyra desires to acquire an option to purchase said Shares from
Felber,

         The Parties hereby understand and agree as follows:

         (1) Felber hereby grants Jyra an irrevocable option to purchase up to
             a total of 255,640 Shares as follows:

                  (a)      30,000 Shares may be purchased by Jyra during the
                           period from February 1, 1999 to February 28, 1999 at
                           a price of $4.00 per Share; and

                  (b)      up to 225,640 Shares may be purchased by Jyra from
                           time to time up to and including the date which is
                           the EARLIER of (a) fifteen days after the date upon
                           which Path 1 receives a minimum of $2,000,000 from
                           investors in its current equity offering, or (b) July
                           31, 1999, as follows:

                           (i)      if the Shares are purchased on or before
                                    April 30, 1999, the purchase price per Share
                                    is $3.50; and

                           (ii)     If the Shares are purchased between May 1,
                                    1999 and July 31, 1999, the purchase price
                                    per Share is $4.00.

         (2)      (a) In the event that Jyra does not exercise the option to
                  purchase all 30,000 Shares from Felber in accordance with
                  paragraph 1(a), the option to purchase up to 225,640 Shares
                  from Felber set forth in paragraph 1(b) shall be void and, in
                  such event, Felber shall have the right to sell all or a
                  portion of the 255,640 Shares (which are subject to the option
                  set forth in paragraphs 1(a) and 1(b)) in accordance with Rule
                  144.

                  (b) Path 1 hereby agrees that Felber is not an affiliate of
                  Path 1, accepts Felber's representations in "Seller's
                  Representation Letter dated January 25, 1999 (Exhibit 1 A
                  hereto), and agrees to cooperate in Felber's proposed sales of
                  Shares as per "Form 144 dated January 25, 1999" (Exhibit 1 B
                  hereto) in the event that Jyra does not exercise the option to
                  purchase all 30,000 Shares from Felber in accordance with
                  paragraph 1(a). Path 1 has made its own independent

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                  determination that, as of January 25, 1999, Felber has
                  satisfied all the conditions in Seller's Representation Letter
                  dated January 25, 1999, and that, as of January 25, 1999, Path
                  1 would approve Felber's sale of Shares pursuant to Rule 144.
                  Path 1 hereby agrees that it will take no steps to change the
                  status of Felber so that future sales of Shares pursuant to
                  Rule 144 remain available and approved.

         (3)      In the event Jyra purchases some but not all of the Shares
                  subject to the option in accordance with paragraph 1(b),
                  Felber shall have the right to sell the balance of any such
                  Shares not purchased by Jyra in accordance with Rule 144.

         (4)      Payment for the Shares shall be made in U.S. funds by bank or
                  certified check or by wire transfer, in no event later than
                  (a) February 28, 1999 with respect to sales under paragraph
                  1(a), (b) April 30, 1999 with respect to sales under paragraph
                  1(b)(i), and (c) July 31, 1999 with respect to sales under
                  paragraph 1(b)(ii).

         (5)      This represents the entire Option Agreement between the
                  parties, superseding all prior agreements, and may only be
                  modified in writing signed by the parties.

Jyra Research Inc.


By   /s/ Roderick Adams                                 /s/ Franklin S. Felber
  ---------------------                               ------------------------
    Roderick Adams                                    Franklin S. Felber
    Director


Path 1 Network Technologies Inc.
    As to paragraphs (2), (3) and (5) only


By   /s/ Michael Berns
  --------------------
    Michael Berns
    Director

By   /s/ James Berns
  ------------------
    James Berns
    Secretary & General Counsel