Document:

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                              LICENSING AGREEMENT

      This Licensing Agreement (the "Agreement") is entered into between

                                     ImagicTV Inc.  (hereinafter "ImagicTV"), a
                                     Canadian corporation with its principal
                                     place of business at One Brunswick Square,
                                     Suite 1400, Saint John, New Brunswick,
                                     Canada

                                     and

                                     NBTel Inc., a Canadian corporation with its
                                     principal place of business at One
                                     Brunswick Square, Saint John, New
                                     Brunswick, Canada, (hereinafter "NBTel")

          WHEREAS ImagicTV has developed a "telco-ready" business application
software ("DTV Manager System"), enabling NBTel to deliver digital television
and high speed internet access to subscribers over existing copper telephone
wires on a managed high speed internet protocol network to a TV with a set top
box;

          AND WHEREAS ImagicTV is willing to license its delivery of its DTV
Manager System to NBTel on the terms and conditions stated below;

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.   DEFINITIONS

     1.1  "DTV Manager System" shall mean collectively the object code version
          of the software, the functionality of which is described in the
          Product Description attached as Schedule "A" hereto, as may be amended
          by the parties from time to time, as well as the accompanying user
          guides and manuals for use of the software, and all Updates thereto.

     1.2  "Data-base Software" shall mean the third party software described in
          Schedule "A.1" hereto, as may be amended from time to time, which is
          necessary for the operation of the DTV Manager System and is licensed
          directly by NBTel from the third party licensor, and forms part of
          the Designated System, but not part of the DTV Manager System.
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     1.3  "Designated System" shall mean NBTel's network components, computer
          hardware, computer operating system, Set Top Box, Data-base Software,
          and program data providers which are recommended by ImagicTV and which
          support the operations of the DTV Manager System.

     1.4  "Effective Date" shall mean the date on which this Agreement comes
          into effect.

     1.5  "Intellectual Property Rights" means all intellectual property rights
          worldwide arising under statutory or common law, and whether or not
          perfected, including, without limitation, all (i) patents, patent
          applications and patent rights; (ii) rights associated with works of
          authorship including copyrights, design rights (whether or not
          registered or capable of registration), copyright applications,
          copyright registrations, mask work rights, mask work applications,
          mask work registrations; (iii) rights relating to the protection of
          trade secrets and confidential information; (iv) trademarks, logos;
          (v) any right analogous to those set forth in this definition and any
          other proprietary rights relating to intangible property; and (vi)
          divisions, continuations, renewals, re-issues and extensions of the
          foregoing (as and to the extent applicable) now existing, hereafter
          filed, issued or acquired.

     1.6  "Maintenance Releases" shall mean subsequent object code versions of
          the DTV Manager System which provide a fix or repair to the current
          version of the DTV Manager System being used by NBTel.  These releases
          will be designated with a numbering system as follows:  Release 1.X or
          Release 2.X, where "X" signifies the maintenance update to the
          release.

     1.7  "Major Releases" shall mean subsequent object code versions of the DTV
          Manager System which provide enhanced functionality to the previous
          most current release of the DTV Manager System.  These releases will
          be designated with a numbering system as follows:  Release 3.0,
          Release 4.0, Release 5.0, Release X.0, etc.

     1.8  "NBTel Activation File" shall mean the file generated by the DTV
          Manager System which records subscriber activation/deactivation and
          from which the number of Total Active Subscribers are calculated.

     1.9  "Object Code Patches" shall mean an object code change which provides
          a fix or repair to the release of the current version of the DTV
          Manager System being used by NBTel.  These patches will not change the
          numbering designation.

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     1.10 "On-Site Expenses" shall mean all subsistence and travel expenses
          incurred in effecting on-site services including, but not limited to
          technical support and maintenance, training, engineering and
          consulting services.

     1.11 "Program Errors" shall mean one or more reproducible deviations in
          the DTV Manager System from the applicable functions set forth in the
          Product Description.

     1.12 "Set Top Box" shall mean the hardware device units that will decode
          MPEG 1 or MPEG 2 audio and video that is delivered over a managed high
          speed Internet Protocol ("IP") network and recommended by ImagicTV as
          part of the Designated System.  For the avoidance of doubt, the Set
          Top Box does not form any part of the DTV Manager System is supplied
          to the Subscriber under an independent contract with NBTel.

     1.13 "Subscriber" shall mean an end user customer of NBTel located within
          the Territory who is bound by the Minimum Terms and Conditions set out
          in Schedule "B" hereto.

     1.14 "Territory" shall mean the Province of New Brunswick.

     1.15 "Total Active Subscribers" shall mean the net number of activated
          Subscribers for each Quarter as calculated by the number of total
          active Subscribers at the beginning of a Quarter plus the number of
          newly activated Subscribers during that Quarter less the number of
          deactivated Subscribers during that Quarter.

     1.16 "Updates" shall mean collectively Major Releases, Maintenance
          Releases, and Object Code Patches.

2.   LICENSE GRANT

     2.1  Grant of License -- DTV Manager System

          Subject to the terms and conditions of this Agreement and in
          consideration of the fees specified in Schedule "D" ("Fees and
          Payments"), ImagicTV hereby grants to NBTel a nonexclusive,
          nonassignable perpetual license in the Territory to use the DTV
          Manager System as follows:

          (i)  to copy for archival or backup purposes; no other copies shall be
               made without ImagicTV's prior written consent.  All title,
               trademarks, and copyright and restricted rights notices shall be
               reproduced in such copies.  All archival and backup copies of the

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               DTV Manager System are subject to the terms of this Agreement;
               and

          (ii) to copy, install, store, communicate, transmit, and use the DTV
               Manager System solely for the following purposes:

               (a)  to market and demonstrate the DTV Manager System in
                    conjunction with the Designated System and its own services
                    to potential Subscribers;

               (b)  to grant access to the DTV Manager System in conjunction
                    with the Designated System and its own services solely to
                    Subscribers, and;

               (c)  to provide technical support services to Subscribers

     2.2  Beta License

          ImagicTV may, at its discretion, deliver to NBTel experimental
          versions of the DTV Manager System in the form of beta or pre-release
          versions ("Betas") subject to the following terms:

          (i)  Subject to all restrictions set forth in this Agreement, ImagicTV
               grants solely to NBTel a limited, non-exclusive and non-
               transferable license to use the Betas solely at the address set
               forth above and only for the purpose of evaluating and testing
               such Betas.  Except as expressly set forth herein, the license
               granted to NBTel in this Section 2.3 ("Beta License") shall not
               be for any other purpose, and any other use by NBTel shall
               constitute a material breach of this Agreement.

          (ii) NBTel will supply ImagicTV with an evaluation report every two
               (2) weeks, with the first evaluation report due two (2) weeks
               after ImagicTV delivers the applicable Beta (collectively, the
               "Evaluation Reports").  The Evaluation Reports shall set forth in
               reasonable detail the tests performed, the results of those
               tests, problems or deficiencies encountered in the testing
               process, suggested solutions to the problems and recommended
               action for modification of the Betas based on NBTel's test
               results.  The Evaluation Reports shall be delivered via
               electronic mail to the following email address:
               customerservices@imagictv.com or as otherwise agreed to by the
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               parties.

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          (iii) NBTel shall cease using and destroy all copies of any Betas
                provided hereunder upon the earlier of (a) ImagicTV's delivery
                of the production version of such software; (b) ImagicTV's
                written notice to NBTel; (c) any date mutually agreed upon in
                writing by the parties, and (d) termination of this Agreement.

     2.3  Enforcement

          NBTel shall use best efforts to protect the Intellectual Property
          Rights of ImagicTV in the DTV Manager System.  NBTel will cooperate
          with ImagicTV in any legal action to prevent or stop unauthorized use,
          reproduction or distribution of the DTV Manager System and NBTel shall
          fully indemnify ImagicTV in respect of any loss or damage suffered by
          ImagicTV as a result of any of its Subscribers infringing the
          Intellectual Property Rights of ImagicTV or of its licensors.

     2.4  Title

          ImagicTV shall retain all Intellectual Property Rights in the DTV
          Manager System and the Betas and any modifications or translations
          thereof.  NBTel does not acquire any rights in the DTV Manager System
          or the Betas other than those specified in this Agreement.

     2.5  Limitations on Use

          NBTel shall not use or duplicate the DTV Manager System or the Betas
          for any purpose other than as specified in this Agreement or make the
          DTV Manager System or the Betas available to unauthorized third
          parties.  NBTel shall not, and shall prevent others from, reverse
          engineering, disassembling, decompiling, copying, translating,
          modifying, creating derivative works, encumbering, or otherwise using
          the DTV Manager System or the Betas except as specifically authorized
          pursuant to this Agreement.

     2.6  Third Party License Restrictions

          All licenses granted by ImagicTV under this Agreement are subject to
          compliance by NBTel with any applicable third party license
          restrictions, and receipt by ImagicTV of any required consents with
          respect to the third party code.  A current list of third party
          license restrictions is set forth on Schedule "E" hereto.

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          ImagicTV reserves the right to substitute any third party software in
          the DTV Manager System so long as the new third party software does
          not materially affect the functionality of the DTV Manager System.

     2.7  Delivery of Master Copies

          ImagicTV shall deliver to NBTel's address following execution of this
          Agreement, a master copy of the DTV Manager System.  The delivery will
          follow NBTel's acceptance procedure.

     2.7  Systems Dependency

          System dependency for the operation of the DTV Manager System includes
          a Set Top Box and a server, which are necessary components of the
          Designated System.

3.   MARKETING

     3.1  Publicity

          ImagicTV and NBTel shall cooperate with each other so that each party
          may issue a public announcement concerning this Agreement within
          thirty (30) days following the Effective Date of this Agreement
          provided that both parties approve any such public announcement in
          writing prior to its release.  Such public announcement may include a
          quote attributable to an executive officer of each party.

     3.2  Marketing Efforts

          Each party may mutually agree from time to time to feature the DTV
          Manager System and references to each other's product at trade shows,
          marketing and promotional materials, websites and other prospective
          NBTel materials.  All use by one party of the other party's
          trademarks, logos, or service marks shall be in accordance with each
          party's usage guidelines in effect at the time.  ImagicTV and NBTel
          shall mutually agree on all joint marketing efforts related to the DTV
          Manager System.

     3.3  Marketing Practices

          In marketing the DTV Manager System, NBTel shall:

          1.  Not engage in any deceptive, misleading, illegal, or unethical
              practices that may be detrimental to ImagicTV or the DTV Manager
              System;

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          2.  Not make any representations, warranties, or guarantees concerning
              the DTV Manager System that are inconsistent with or in addition
              to those made in this Agreement or by ImagicTV; and

          3.  Comply with all applicable federal, state/provincial, and local
              laws and regulations in performing its duties with respect to the
              DTV Manager System.

4.   MAINTENANCE AND SUPPORT SERVICES

     4.1  Major Releases

          NBTel will receive Major Releases and related documentation for the
          first twelve months following the Effective Date, and thereafter, upon
          payment of the Maintenance Fees prescribed in paragraph "C" of
          Schedule "D" hereto.  Updates shall be kept current unless provided
          otherwise herein.

          The installation of the initial version of the DTV Manager System and
          each installation of Updates is to be done by NBTel.  ImagicTV will
          support such installations.

     4.2  Technical Support Services

          NBTel will receive Technical Support Services (which includes
          Maintenance Releases and Object Code Patches) for the first twelve
          months following the Effective Date, and thereafter, upon payment of
          the Maintenance Fees prescribed in paragraph "2" of Schedule "D"
          hereto in accordance with the terms and conditions in effect, the
          current version of which is set forth in Schedule "C", and subject to
          availability of the appropriate ImagicTV personnel.

          ImagicTV shall not be responsible for providing any technical support
          directly to Subscribers.

     4.3  Training Services

          NBTel will receive training services for its employees for Release
          1.0, Release 2.0, and Release 3.0 of the DTV Manager System, subject
          to ImagicTV's terms and conditions in effect at the time and subject
          to availability of the appropriate ImagicTV personnel.  For any
          training services to be provided by ImagicTV at any location other
          than ImagicTV facilities, NBTel shall reimburse ImagicTV for all On-
          Site Expenses.

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          For Release 4.0 of the DTV Manager System, and subsequent releases,
          ImagicTV will provide training services to NBTel's employees at
          ImagicTV's then-current standard rates, subject to ImagicTV's terms
          and conditions in effect at the time and subject to availability of
          the appropriate ImagicTV personnel.  For any training services to be
          provided by ImagicTV at any location other than ImagicTV facilities,
          NBTel shall reimburse ImagicTV for all On-Site Expenses.

     4.4  Consulting Services

          ImagicTV will provide consulting services to NBTel's employees at
          ImagicTV's then-current standard rates, subject to ImagicTV's terms
          and conditions in effect when ordered by NBTel and subject to
          availability of the appropriate ImagicTV personnel.  For any
          consulting services to be provided by ImagicTV at any location other
          than ImagicTV facilities, NBTel shall reimburse ImagicTV for all On-
          Site Expenses

5.   FEES AND PAYMENTS

     5.1  Generally

          In consideration of the rights granted by ImagicTV to NBTel under this
          Agreement, NBTel shall pay to ImagicTV the non-cancelable, non-
          refundable fees, as set forth in Schedule "D" hereto.

          NBTel shall not be relieved of its obligation to pay fees owed to
          ImagicTV by the nonpayment of any fees by Subscribers.  The parties
          acknowledge and agree that NBTel is free to determine unilaterally its
          own fees to its Subscribers.

          For the avoidance of doubt, all license and related fees for the Data-
          base Software are paid for by NBTel directly to the third party Data-
          base Software licensor and are not included in the DTV Manager fees
          set out in Schedule "D" of this Agreement.

     5.2  General Payment Terms

          Except as otherwise provided herein, all fees, royalties and any
          applicable taxes shall be due and payable within thirty (30) days from
          the invoice date.  Fees and royalties owing by NBTel shall not be
          subject to set off for any claims against ImagicTV.  Except as
          otherwise specifically provided in this Agreement, all payments shall
          be made by cheque in Canadian currency payable to ImagicTV Inc.  Any
          amounts payable by NBTel hereunder

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          which remains unpaid after the due date shall be subject to a late
          charge equal to the lower of (i) 1.25% or (ii) the maximum rate
          allowed by law, per month from the due date until such amount is paid.
          All invoices shall be sent to NBTel at the address stated above.

     5.3  Taxes

          The fees and charges levied by ImagicTV to NBTel are net of any taxes.
          If ImagicTV is at any time required to charge any sales, use, value
          added or other taxes (other than income taxes) based on the fees or
          charges levied hereunder, such taxes shall be billed to and paid by
          NBTel.

6.   RECORDS

     6.1  Remote Access

          NBTel shall provide to ImagicTV remote access by modem to its NBTel
          Activation File for the purpose of allowing ImagicTV access to NBTel's
          Subscriber data and to allow ImagicTV to determine the number of Total
          Active Subscribers for the purpose of preparing the Quarterly
          Subscriber Report as defined herein.

     6.2  Reports

          ImagicTV shall send to NBTel a quarterly report detailing (a) the
          number of new Subscribers; (b) the number of Total Active Subscribers;
          and (c) the total fees due according to the types of fees set out in
          Schedule "D" (the "Quarterly Subscriber Report").

          At the time ImagicTV provides this report, it shall also provide its
          invoice for that particular quarter and NBTel shall pay all fees due
          under such Quarterly Subscriber Report in accordance with the payment
          terms set out in Clause 5 herein.

     6.3  Records Inspection

          Each party shall maintain adequate books and records in connection
          with activity under this Agreement.  Such records shall include,
          without limitation, information contained in and related to the
          Quarterly Reports.  Each party may audit the relevant books and
          records of the other party.  Any such audit shall be conducted during
          regular business hours at the audited party's offices and shall not
          interfere unreasonably with the audited party's normal business
          activities.

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     6.4  Notice of Claim

          NBTel will notify ImagicTV promptly in writing of: (a) any claim or
          proceeding involving the DTV Manager System that comes to its
          attention; and (b) any material change in the management or control of
          NBTel such as bankruptcy, acquisition, merger, or sale of all or
          substantially all of NBTel's assets.

7.   TERM AND TERMINATION

     7.1  Term

          This Agreement shall commence on the Effective Date and shall continue
          until terminated pursuant to clause 7.2 herein.

     7.2  Termination

          (a)  Without prejudice to any right or remedy either party may have
               against the other for breach or non-performance of the Agreement
               either party shall have the right to summarily terminate this
               Agreement, by notice in writing to the other party, if the other
               has committed a material breach of this Agreement providing (if
               the breach is incapable of remedy), that the party in breach has
               been advised in writing of the breach and has not rectified the
               breach in within twenty eight (28) days of receipt of such
               advice.

          (b)  Each party may summarily terminate this Agreement by notice in
               writing to the other if it becomes insolvent, or admits in
               writing its insolvency or inability to pay its debts, or makes an
               assignment for the benefit of its creditors, or makes an
               arrangement or composition with its creditors, or goes or is put
               into liquidation, or is wound up, or if a receiver is appointed
               over any part of that party's property.

          (c)  ImagicTV may summarily terminate this Agreement, by providing 60
               days written notice to NBTel, should NBTel fail to make any
               payment required by this Agreement on (or before) its due date.

     7.3  Effect of Termination

          The termination of this Agreement shall not limit either party from
          pursuing any other remedies available to it, including injunctive
          relief, nor shall such termination relieve NBTel's obligation to pay
          all fees that are owed by NBTel up and including the effective date of
          termination of this Agreement.

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          For the avoidance of doubt, all rights to use the DTV Manager System
          will cease on termination and ImagicTV will have the right to
          deactivate the DTV Manager System.

     7.4  Survival

          The parties' rights and obligations under Section 2.6 ("Limitations on
          Use"), and Section 5 ("Fees and Payments") with respect to any fees
          that are owed by NBTel as of the date of termination or expiration of
          this Agreement, 6 ("Records"), 7 ("Term and Termination"), 8
          ("Intellectual Property Rights"), 9 ("Indemnification and
          Warranties"), and 10 ("General Terms") shall survive termination of
          this Agreement.

8.   INTELLECTUAL PROPERTY RIGHTS

     8.1  General

          ImagicTV retains all ownership and Intellectual Property Rights to the
          DTV Manager System, Betas, the ImagicTV Technical Support policies and
          documents, the ImagicTV business model, and all other ImagicTV-labeled
          marketing and technical collateral related to the ImagicTV products
          and services.  NBTel retains all ownership and rights to its software
          and its independently developed intellectual property.  NBTel also
          retains all ownership and rights to NBTel's Logos, and all other NBTel
          labeled marketing and technical collateral.

          NBTel shall have no ownership interest in and, other than the license
          specified in this Agreement, shall acquire no rights in the DTV
          Manager System or the Betas and NBTel shall hold these items in trust
          for ImagicTV

     8.2  Copyrights

          The DTV Manager System and Betas are copyrighted by ImagicTV.  NBTel
          shall be required to (i) retain all ImagicTV copyright notices on the
          DTV Manager System and Betas used by NBTel under the licenses granted
          hereunder, and (ii) comply with all third party licensor restrictions,
          a current list of which is set forth on Schedule "E" hereto.  NBTel
          shall be required to include a reproduction of ImagicTV's copyright
          notice on all copies of the DTV Manager System and Betas deployed by
          NBTel in whatever form.

          Notwithstanding any copyright notice by NBTel to the contrary, the
          copyright to the DTV Manager System and Betas shall remain in
          ImagicTV.

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     8.3  Logos

          Each party may mutually agree to use each other's logos in its
          marketing and promotional materials with prior written consent and
          under terms and conditions as agreed in each instance.

9.   INDEMNFICATION AND WARRANTIES

     9.1  ImagicTV Indemnification

          ImagicTV will defend and indemnify NBTel against a claim that the DTV
          Manager System infringes a U.S. or Canadian copyright, provided that:
          (a) NBTel notifies ImagicTV in writing within thirty (30) days of the
          claim; (b) ImagicTV has sole control of the defense and all related
          settlement negotiations; and (c) NBTel provides ImagicTV with the
          assistance, information and authority necessary to perform ImagicTV's
          obligations under this Section.  Reasonable out-of-pocket expenses
          incurred by NBTel in providing such assistance will be reimbursed by
          ImagicTV.

          ImagicTV shall have no liability for any claim of infringement based
          on (i) use of a superseded or altered release of the DTV Manager
          System if the infringement would have been avoided by the use of a
          current unaltered release of the DTV Manager System which ImagicTV
          provides to NBTel; (ii) the DTV Manager System in combination with
          software, hardware or other materials other than those provided for
          according to this Agreement, if such infringement would have been
          avoided by the use of the DTV Manager System without such software,
          hardware or other materials; or (iii) related to the Betas in any way.

          In the event that the DTV Manager System is held or is believed by
          ImagicTV to infringe, ImagicTV shall have the option, at its expense,
          to (i) modify the DTV Manager System to be noninfringing; or (ii)
          obtain for NBTel a license to continue using the DTV Manager System.

          This Section states ImagicTV's entire liability and NBTel's exclusive
          remedy for infringement.

     9.2  NBTel Indemnification

          NBTel will defend and indemnify ImagicTV against (a) all claims and
          damages to ImagicTV arising from any use by NBTel, and/or Subscribers
          of any product or service not provided by ImagicTV but used in
          combination with the DTV Manager System if such claim would have been

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          avoided by the exclusive use of the DTV Manager System; and (b) all
          claims and damages to ImagicTV caused by a Subscriber's breach of any
          of the applicable provisions of the Minimum Terms and Conditions set
          out in Schedule "B"; provided that (i) ImagicTV notifies NBTel in
          writing within thirty (30) days of the claim; (ii) NBTel has sole
          control of the defense and all related settlement negotiations; and
          (iii) ImagicTV provides NBTel with the assistance, information and
          authority necessary to perform NBTel's obligations under this Section.
          Reasonable out-of-pocket expenses incurred by ImagicTV in providing
          such assistance will be reimbursed by NBTel.

     9.3  Warranties and Disclaimers

          A.   DTV Manager System

               ImagicTV warrants for a period of ninety (90) days from the
               installation date of the DTV Manager System on NBTel's server,
               that the unmodified DTV Manager System will perform the functions
               substantially as described in the Product Description when
               operated as described therein.

          B.   Media Warranty

               ImagicTV warrants the tapes, diskettes or other media to be free
               of defects in materials and workmanship under normal use for
               ninety (90) days from the Effective Date.

          C.   Disclaimers

               THE WARRANTIES ABOVE ARE EXCLUSIVE AND IN LIEU OF ALL OTHER
               WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING THE IMPLIED
               WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS FOR A
               PARTICULAR PURPOSE.

               IMAGICTV DOES NOT WARRANT THAT THE DTV MANAGER SYSTEM WILL
               OPERATE IN COMBINATIONS OTHER THAN AS SPECIFIED IN THE PRODUCT
               DESCRIPTION OR THAT THE OPERATION OF THE DTV MANAGER SYSTEM WILL
               BE UNINTERRUPTED OR ERROR-FREE.  THE BETAS ARE PROVIDED "AS IS."

               NBTel shall not make any warranty on ImagicTV's behalf.

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     9.4  Exclusive Remedies

          For any breach of the warranties contained in Section 9.3 ("Warranties
          and Disclaimers"), NBTel's exclusive remedy, and ImagicTV's entire
          liability, shall be:

          1.   For the DTV Manager System
               Correction of Program Errors that cause breach of the warranty.

          2.   For Media
               The replacement of defective media returned within ninety (90)
               days of the Effective Date.

     9.5  Limitation Of Liability

          IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL,
          SPECIAL OR CONSEQUENTIAL DAMAGES FOR LOSS OF PROFITS, REVENUE, DATA OR
          USE, INCURRED BY EITHER PARTY OR ANY THIRD PARTY, WHETHER IN AN ACTION
          IN CONTRACT OR TORT, EVEN IF THE OTHER PARTY OR ANY OTHER PERSON HAS
          BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  IMAGICTV'S
          CUMULATIVE LIABILITY FOR DAMAGES HEREUNDER SHALL IN NO EVENT EXCEED
          THE AMOUNT OF THE LICENSE FEE AS DEFINED HEREIN.

          The provisions of this Agreement allocate the risks between ImagicTV
          and NBTel.  ImagicTV's pricing reflects this allocation and the
          limitation of liability specified herein.

     9.6  Milennium Compliance Warranty

          ImagicTV warrants that the DTV Manager System, and all Major Releases
          and Maintenance Releases, will meet the "Year 2000 Conformity"
          standards as set out in the document published with reference number
          DISC PD2000-1 by the part of the British Standards Institution called
          DISC entitled "A Definition of Year 2000 Conformity Requirements"
          including the Amplification of the Definition and Rules set out in the
          same document as attached hereto as Schedule "G".

10.  GENERAL TERMS

     10.1 Nondisclosure

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           The parties agree that all disclosures of Confidential Information
           shall be governed by the terms of the Mutual Non-Disclosure Agreement
           executed by the parties on April 11th, 1998 and attached hereto as
           Schedule "F", modified only to the extent necessary to be in
           accordance with the terms of this Agreement.

     10.2  Relationship between Parties

           The legal relationship between ImagicTV and NBTel is that of
           licensor/licensee. Neither party will represent that it has any
           authority to assume or create any obligation, express or implied, on
           behalf of the other, nor to represent the other as agent, employee,
           franchisee, or in any other capacity.

     10.3  Assignment

           Neither party shall have the right to assign its rights under this
           Agreement, whether expressly or by operation of law, without the
           written consent of the other party. This Agreement and the
           obligations hereunder shall be binding on any successors and
           permitted assigns.

     10.4  Force Majeure

           Neither party shall be liable to the other for failure or delay in
           the performance of a required obligation, other than payment of
           money, if such failure or delay is caused by strike, riot, fire,
           flood, natural disaster, or other similar cause beyond such party's
           control, provided that such party gives prompt written notice of such
           condition and resumes its performance as soon as possible, and
           provided further that the other party may terminate this Agreement if
           such condition continues for a period of 180 days.

     10.5  Notice

           All notices, including notices of address change, required to be sent
           hereunder shall be in writing and shall be deemed to have been given
           when deposited in first class mail to the address of the applicable
           party listed above. To expedite order processing, NBTel agrees that
           ImagicTV may treat documents faxed by NBTel to ImagicTV as original
           documents; nevertheless, either party may require the other to
           exchange original signed documents.

                                       15
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     10.6  Severability, Waiver

           In the event any provision of this Agreement is held to be invalid or
           unenforceable, the remaining provisions of this Agreement will remain
           in full force and effect. The waiver by either party of any default
           or breach of this Agreement shall not constitute a waiver of any
           other or subsequent default or breach.

     10.7  Export

           NBTel agrees to comply fully with all relevant export laws and
           regulations of the Province of New Brunswick and any other applicable
           jurisdiction, as promulgated from time to time ("Export Laws") to
           assure that neither the DTV Manager System, nor any direct product
           thereof, are (a) exported, directly or indirectly, in violation of
           Export Laws; or (b) are intended to be used for any purposes
           prohibited by the Export Laws, including, without limitation,
           nuclear, chemical, or biological weapons proliferation.

     10.8  Territory

           NBTel may not expand the Territory without the written consent of
           ImagicTV.

     10.9  Governing Law

           This Agreement, and all matters arising out of or relating to this
           Agreement, shall be governed by the substantive and procedural laws
           of the Province of New Brunswick without regard to the conflicts of
           laws provisions thereof and shall be deemed to be executed in Saint
           John, New Brunswick. The parties agree that any legal action or
           proceeding relating to this Agreement shall be instituted in the
           Court of Queen's Bench in the City of Saint John, County of Saint
           John, Province of New Brunswick. ImagicTV and NBTel agree to submit
           to the jurisdiction of, and agree that venue is proper in, these
           courts in any such legal action or proceeding.

     10.10 Escalation/Arbitration

           In the event a dispute arises between the parties which cannot,
           through good faith efforts be resolved, the parties agree to submit
           such dispute to binding arbitration. All aspects of the arbitration
           shall be treated as confidential. Neither the parties nor the
           arbitrator may disclose the existence, content or results of the
           arbitration, except as necessary to comply with legal or regulatory
           requirements. Before making any such disclosure, a party shall

                                       16
<PAGE>

           give written notice to the other party and shall afford such other
           party a reasonable opportunity to protect its interests. Nothing
           herein shall limit either party from seeking injunctive relief or
           other equitable remedy from any competent court at any time.

     10.11 Entire Agreement

           This Agreement constitutes the complete agreement between the parties
           and supersedes all prior or contemporaneous agreements or
           representations, written or oral, concerning the subject matter of
           this Agreement. This Agreement may not be modified or amended except
           in a writing signed by an authorized representative of each party; no
           other act, document, usage or custom shall be deemed to amend or
           modify this Agreement.

           The Schedules attached hereto form part of this Agreement. To the
           extent that there are any conflicts, the specific terms of the
           Schedules shall supercede the general terms of this Agreement.

           DATED this ____ day of ____________, 1999.

"NBTel"                          )        "ImagicTV"
                                 )
NBTel Inc.                       )        ImagicTV Inc.
                                 )
By:___________________________   )        By:___________________________
                                 )
Name:_________________________   )        Name:_________________________
                                 )
Title:________________________   )        Title:________________________

                                       17
<PAGE>

                                  Schedule A
                                  ----------
                                 (Release 1.0)

Product Description Addendum

           All terms in the Agreement are applicable and any capitalized terms
that are not defined herein have the same meaning as in the Agreement.  The
acronyms and symbols used in this addendum and not defined in the Agreement are
defined as follows:

1.   Definitions

     1.1   "EPG" shall mean the interactive Electronic Program Guide developed
           by ImagicTV and accessed by the Subscriber through the Set Top Box
           which contains days of channel line up information.

     1.2   "MPEG" shall mean the Moving Pictures Expert Group 1 and/or Moving
           Pictures Expert Group 2.

2.   Services Supported by the DTV Manager System

     The ImagicTV DTV Manager System software will offer the essential services
     necessary to support MPEG IP multicast video services over NBTel's internet
     protocol infrastructure.  These services include processes that will run on
     NBTel's servers and the Set Top Boxes. The client side services involve the
     deployment of Set Top Boxes, which are MPEG capable, IP multicast ready and
     directly connected to the network, and a basic EPG. The backend has the
     capability to retrieve EPO data, as well as multicast data and software to
     the Set Top Box. Administration features include the ability to register
     Subscribers.

3.   Subscriber Viewing and Client Features

     3.1   EPG

           The client features operating on the Set Top Box will allow the
           Subscriber to use the EPG, which contains up to seven (7) days worth
           of channel line-up information presented in a grid format. The EPG is
           refreshed automatically when new program data is created on the
           server. The EPG is automatically redrawn on the half-hour.

           The DTV Manager System Software enables automated import of EPG data.
           It is the responsibility of NBTel to acquire such EPG data and
           deliver this data to the DTV Manager System in the format specified
           by ImagicTV.

                                       18
<PAGE>

     3.2   Channel Changing

           The Subscriber will be able to change channels by "scrolling" through
           the channel lineup using the (Channel Up) and (Channel Down) or by
           directly inputting the channel number on the remote control. The
           Subscriber may also access channels from the EPG. The Set Top Box
           tunes into the channels by joining and leaving IP multicast
           addresses. Channel content may include television broadcast video,
           audio or Internet "web" content.

     3.3   Program Information Overlays

           An information overlay will appear briefly when changing channels.
           This information contains the program description for the channel
           currently selected as contained in the EPG data. The DTV Manager
           System enables presentation in two different formats; brief and
           detailed. Pressing the <Info> key on the remote control accesses the
           detailed program information overlay.

     3.4   Integrated Access to Multimedia Content

           The DTV Manager System Software brings together a variety of media
           types in a seamless fashion allowing Subscribers to effortlessly move
           between television broadcast video, audio and Internet "web" content.

     3.5   Updating Data and Software on the Set Top Box

           Set Top Box core software and EPG related data is automatically
           updated from the server during the power up process or when the Set
           Top Box detects changes to the software and data.

4.   Powers Up Premises Equipment

     When a new Set Top Box is connected to the DTV Manager System and turned on
     for the first time, the Set Top Box automatically registers itself with the
     DTV Manager System server.  If the Subscriber's account information has
     already been established through "Registers Subscriber" feature, the Set
     Top Box will receive the necessary software and data to allow it to begin
     viewing the appropriate TV audio and video channels.

5.   Registers Subscriber

     The DTV Manager System provides basic Subscriber provisioning of accounts,
     subscribers, and activated Set Top Boxes.  This feature would normally be
     used by

                                       19
<PAGE>

     NBTel's service administrators and must be used to enable the "Powers Up
     Premises Equipment" feature to operate.

6.   Operations Features

     6.1   Create Application Events

           Certain system events and Subscriber activities on the Set Top Box
           will be captured and forwarded to NBTel's server. On the server,
           similar administrative user and system events will be captured,
           stored and available for manual retrieval and analysis by NBTel.

     6.2   Internet Web Access

           The Subscriber has the ability to "surf" the World Wide Web through
           the Set Top Box (via the Set Top Box browser) and its remote control,
           or with a keyboard selected by NBTel, if this option is provided by
           NBTel and incorporated as part of the Designated System.

     6.3   Web Email Access

           The Subscriber has the ability to send and receive electronic mail
           (email) through the Set Top Box using a Web-based email product if
           NBTel licenses a web-based e-mail product from any third party and
           includes it as part of the Designated System.

                                       20
<PAGE>

                                 Schedule "B"
                                 -----------

Minimum Terms and Conditions for Sublicense Agreement

In addition to the terms and conditions set forth in the Agreement, NBTel shall
include with the supply of each Set Top Box to a Subscriber a sublicense
agreement, which contains, at a minimum, contractual provisions that:

1)   Prohibit title to the DTV Manager System from passing to the Subscriber or
     any other party;
2)   Disclaim, to the extent permitted by applicable law, any liability of
     ImagicTV, or its licensors for any damages, whether direct, indirect,
     incidental or consequential, arising from the use of the DTV Manager
     System;
3)   Prohibit the reverse engineering, disassembly or decompilation of the DTV
     Manager System, by either the Subscriber or any other party;
4)   Specify ImagicTV as a third party beneficiary of each Sublicense Agreement
     to the extent that its interest applies.

                                       21
<PAGE>

                                 Schedule "C"
                                 -----------

                          TECHNICAL SUPPORT SERVICES
                              DTV MANAGER SYSTEM

          The following sets out the terms under which ImagicTV will provide
Technical Support services to NBTel.  Any capitalized terms that are not defined
herein have the same meaning as in the Agreement and, for the avoidance of
doubt, all terms in the Agreement are applicable and to the extent that there is
any conflict, the terms of this schedule shall supercede any terms of the
Agreement.

1.   Technical Liaisons

     NBTel shall designate five of its employees and a sixth alternate employee,
     to act as the primary technical liaisons responsible for all communications
     with ImagicTV's Technical Support representatives ("Technical Liasons").
     Technical Liasons will have suflicient technical expertise, training and/or
     experience (as from time to time defined by ImagicTV and acquired at
     NBTel's expense) to diagnose and resolve system software malfunctions with
     direction by ImagicTV.

     Within one week from the Effective Date, NBTel will provide ImagicTV with
     written notification of the identity of the Technical Liasons and their
     address for notice, including fax, direct telephone line, and e-mail.

2.   Remote Access

     NBTel shall grant to ImagicTV remote dial-in access to NBTel's systems
     ("Remote Access"). NBTel will make all reasonable efforts to facilitate
     Remote Access and shall provide an appropriate gateway for ImagicTV to gain
     Remote Access. All outbound telecommunications charges related to the
     outbound services which are incurred by either ImagicTV or NBTel shall be
     the responsibility of NBTel.

     In the event that NBTel does not grant Remote Access to ImagicTV, or does
     not facilitate Remote Access, and, as a consequence, ImagicTV is required
     to effect on-site inspections and maintenance of NBTel's systems,
     additional fees will be payable, as set out in Schedule "D" of this
     Agreement.

3.   On-Site Access

     The Customer must provide ImagicTV support personnel with reasonable and
     safe access to NBTel's systems; adequate working space and facilities at
     the

                                       22
<PAGE>

     installation site necessary to service systems; and cooperating and
     facilitating support services.

4.   NBTel Responsibilities

     4.1   NBTel shall use the DTV Manager System in accordance with the terms
           of the Agreement;

     4.2   NBTel is responsible for ensuring that only properly trained
           employees operate or use the DTV Manager System in accordance with
           the terms of this Agreement;

     4.3   NBTel shall maintain a site activity log which shall be made readily
           accessable to ImagicTV support personnel who are undertaking on-site
           support;

           NBTel is solely responsible for carrying out all necessary back-up
           procedures for its own benefit to ensure that data integrity can be
           maintained in the event of loss of data for any reason and ImagicTV
           shall not be liable under any circumstances for any losses arising
           from lost or corrupted data, files or programs;

     4.5   NBTel is responsible for controlling the environmental conditions of
           the Designated System and site in accordance with any environmental
           operating ranges specified by ImagicTV or other manufacturer;

     4.6   NBTel is responsible for regularly performing the various routine and
           preventative maintenance operations described in any applicable user
           guides or as advised by ImagicTV.

     4.7   NBTel shall be responsible to operate on the current or most recent
           previous release of the DTV Manager System.

5.   Technical Support

     NBTel will receive the following support services from ImagicTV:

     5.1   7 x 24 Telephone and e-mail Assistance:

           Unlimited telephone (toll-free if available) and e-mail assistance
           for the DTV Manager System is available 24 hours per day, 7 days per
           week, including holidays.

                                       23
<PAGE>

     5.2   SITE ACTIVITY LOG: On-site service performed will be recorded in a
           site activity log.

     5.3   REMOTE DIAL-IN ACCESS: Remote examination and diagnosis of systems
           through NBTel provided gateway.

     5.4   PATCHES AND MAINTENANCE RELEASES: Unless otherwise specified by
           ImagicTV, NBTel will receive Object Code Patches and Maintenance
           Releases for the DTV Manager System.

6.   Classification

     NBTel will classify Program Errors according to the following fault
     diagnosis guidelines:

--------------------------------------------------------------------------------
Priority     Program Error Description                 Initial Response Time (by
                                                       Remote Access)
--------------------------------------------------------------------------------
Critical     Production system is down and NBTel is    Thirty minutes
             unable to do production work.
--------------------------------------------------------------------------------
Major        A major function and/or component is      Two hours
             either unusable or degraded.  No work
             around is available but NBTel is able
             to do some production work.
--------------------------------------------------------------------------------
Minor        A minor function and/or component is      Within 1 Week
             either unusable or degraded and a work
             around is available.
--------------------------------------------------------------------------------
Enhancement  Enhancement requests for new              Ongoing
Request      functionality and features
--------------------------------------------------------------------------------

7.   Notice of Fault Diagnosis

     Prior to requesting support from ImagicTV, NBTel must comply with all
     published operating and troubleshooting procedures for the DTV Manager
     System.

     The Technical Liaison will identify and classify Program Errors and provide
     ImagicTV with notice of the Program Error identity and classification
     (electronically or otherwise).  ImagicTV will respond to the Notice in
     accordance with the appropriate Response Time.

8.   Rectification

                                       24
<PAGE>

     Confirmation of fault classification and diagnosis, and rectification of
     Program Errors will be carried out remotely from ImagicTV's site.  If it is
     necessary to carry out the support services at NBTel's site, NBTel shall be
     fully responsible to pay all On-Site Expenses and all of these amounts
     shall be payable to ImagicTV immediately upon receipt of an invoice for
     same;

--------------------------------------------------------------------------------
Priority     Rectification Efforts & Relief Provided     Permanent Fix
--------------------------------------------------------------------------------
Critical     ImagicTV will work continuously to          Install an Immediate
             generate a fix by providing either a        Patch until the next
             reasonable workaround, an object code       available release.
             patch, or, at minimum a specification
             plan detailing how ImagicTV will address
             the problem together with an estimate of
             the length of time for rectification.
--------------------------------------------------------------------------------
Major        ImagicTV will use commercially reasonable   Install an Immediate
             efforts to provide either a reasonable      Patch until the next
             workaround, an object code patch, or, at    available release.
             minimum a specification plan detailing
             how ImagicTV will address the problem
             together with an estimate of the length
             of time for rectification.
--------------------------------------------------------------------------------
Minor        ImagicTV will determine what action, it     Next Object Code
             proposes to take, based on, among other     Patch or
             things, the importance of the problem to    Maintenance
             NBTel, and the likely general benefit of    Release
             any solution.
--------------------------------------------------------------------------------
Enhancement  Ongoing discussions of the application      Possible future release
Request      for DTV Manager System.
--------------------------------------------------------------------------------

9.   Exclusions

     ImagicTV is not obliged to support the DTV Manager System if Program Errors
     are due to use of the DTV Manager System outside the scope of the Agreement
     or for any reason external to the DTV Manager System including, but not
     limited to, failure or fluctuation of electrical supplies, hardware
     failures, accidents, or natural disasters.

     ImagicTV is not obliged to support the DTV Manager System if NBTel is not
     using the versions of the operating systems software as specified by
     ImagicTV

                                       25
<PAGE>

     from time to time, or if NBTel fails to maintain the DTV Manager System at
     ImagicTV's current release, or the most recent previous release, unless
     specifically agreed to in advance by ImagicTV.

     Technical Support services do not include support in respect of defects or
     errors resulting from any modifications or enhancements to the DTV Manager
     System either not made by ImagicTV or made without ImagicTV's prior written
     consent, or resulting from incorrect use of the DTV Manager System.

10.  Additional Fees

     ImagicTV reserves the right to charge NBTel additional fees at its then-
     current standard rates for services performed in connection with reported
     Program Errors which are later determined to have been due to a cause as
     set out in the Exclusions clause above.

11.  Disclaimer of Warranty and Limitation of Liability

     ImagicTV will use its reasonable endeavours to provide Technical Support
     services promptly within the guidelines set out above in Paragraphs 6, 7, 8
     and 9, but no warranty is given in respect of any times for response or
     rectification by ImagicTV and time will not be of the essence.

     ImagicTV is not liable for any delay arising from any industrial dispute or
     any cause outside its reasonable control and the Response Time will be
     subject to reasonable extension in the event of such delay.

     ImagicTV will not be responsible to assist NBTel in achieving any results
     from the DTV Manager System which are not set out in the Product
     Description, however, as such services are outside the scope of this
     Agreement and will, at NBTel's request and at ImagicTV's option, be
     provided at ImagicTV's then current rates for such services.

     Provision of Technical Support services does not imply any guarantee that
     ImagicTV will be successful in rectifying Program Errors and ImagicTV will
     not be liable for any damages arising out of contract, or tort, including
     direct, indirect, special and consequential damages.

12.  Term

     Technical Support Services will commence upon the Effective Date for a
     period of twelve months and thereafter upon payment of the Maintenance Fees
     as set out in Schedule "D".

                                       26
<PAGE>

13.  Termination

     ImagicTV reserves the right to terminate Technical Support at any time
     without refunding any sums paid by NBTel:

     a)    If any attempt is made, other than by ImagicTV or without ImagicTV's
           prior written consent, to enhance, develop, vary, rectify, program or
           otherwise alter the DTV Manager System, or

     b)    If NBTel has failed to pay ImagicTV in accordance with the provisions
           of this Agreement, or

     c)    Where, in the reasonable opinion of ImagicTV, NBTel's system does not
           meet the minimum requirements of the Designated System, or

     d)    Where, the Designated System requires maintenance in order to
           facilitate the proper functioning and performance of the DTV Manager
           System.

                                       27
<PAGE>

                                 Schedule "D"
                                 -----------

                               Fees and Payments

1.   License Fees

     NBTel shall pay the Initial License Fee and the Subscriber-based License
     Fee (the "License Fees") as follows:

          A.   Initial License Fee.

          In consideration for the grant of License of the DTV Manager System,
          NBTel shall pay to ImagicTV a non-refundable, non-cancelable fee in
          the amount of $500,000 (the "Initial License Fee") upon execution of
          this Agreement payable to ImagicTV as follows:

          (a)  50% of the Initial License Fee due on the earlier of the
               completion of the installation of Release 1.0 of the DTV Manager
               System or March 31st, 1999; and

          (b)  50% of the Initial License Fee due on the earlier of the
               completion of the installation of Release 2.0 of the DTV Manager
               System or December 31st, 1999.

          B.   Subscriber-based License Fees.

          NBTel shall pay to ImagicTV subscription fees in accordance with the
          schedule set out below ("Subscriber-based License Fees").  Subscriber-
          based License Fees are a one time charge invoiced as part of the
          Quarterly Subscriber Report and will commence the earlier of the date
          on which NBTel charges its Subscribers for the NBTel service, or on
          December 31st, 1999.

          -------------------------------------------------------------------
          Total Active Subscribers                One-Time Fee Per Subscriber
          -------------------------------------------------------------------
          1-4000                                  $150.00
          -------------------------------------------------------------------
          4001-8000                               $135.00
          -------------------------------------------------------------------
          8001-20,000                             $120.00
          -------------------------------------------------------------------
          20,001-50,000                           $105.00
          -------------------------------------------------------------------
          50,001 - 100,000                        $ 90.00
          -------------------------------------------------------------------
          100,001+                                $ 80.00
          -------------------------------------------------------------------

2.   Maintenance Fees

     Payment of an annual Maintenance Fee due one year after the Effective Date
     (and thereafter on an annual basis) representing 20% of the License Fees
     will entitle

                                       28
<PAGE>

     NBTel to receive Major Releases and Technical Support Services (which
     includes Maintenance Releases and Object Code Patches).

3.   Consulting Fees

     Consulting Services can be provided by ImagicTV to NBTel at ImagicTV's
     then-current fees in effect at the time.

4.   Training Fees

     Training Services can be provided by ImagicTV to NBTel at ImagicTV's then-
     current fees in effect at the time.

                                       29
<PAGE>

                                 Schedule "E"
                                 -----------

Third Party License Restrictions

The following third party restrictions apply to the extent that the DTV Manager
System incorporates any of the third party software listed below. Any
capitalized terms that are not defined herein have the same definition as in the
Agreement:

Regarding Acorn Software - In the event that the DTV Manager System includes
software licensed from Acorn Computers Limited ("Acorn") (which software is
defined below as the "Software"), NBTel must comply with the following
restrictions and obligations:

1.   NBTel's use of the Software is restricted to object code format and in
     accordance with the terms of this Agreement;
2.   NBTel shall not distribute any Software other than in object code format;
3.   NBTel shall not, except as expressly permitted in this Agreement, have any
     right to sublicense or transfer any of the rights or licences granted in
     this Agreement;
4.   NBTel shall use the Software only in a manner designed to avoid
     jeopardizing or prejudicing Acorn's Intellectual Property Rights;
5.   NBTel shall not reverse engineer, decompile and/or disassemble the
     Software;
6.   NBTel hereby disclaims Acorn's liability for any damages, whether direct,
     indirect, incidental or consequential, arising from the use of the
     Programs; and,
7.   NBTel shall incorporate in every copy of the Software all relevant
     copyrights, notices, marks and other proprietary legends of Acorn and its
     licensors as they appear in the Software.

Regarding Distinct Software - In the event that the DTV Manager System includes
software licensed from Distinct Corporation ("Distinct") (which software is
defined below as the "Software"), NBTel must comply with the following
restrictions and obligations:

1.   NBTel's use of the Software is restricted to object code format and in
     accordance with the terms of this Agreement;
2.   NBTel shall not copy the Software, except for backup purposes only;
3.   NBTel shall not sublicense, sell or otherwise transfer the Software to any
     third party;
4.   The DTV Manager System remains the proprietary property of ImagicTV or its
     suppliers and shall not be reverse engineered, dissembled or decompiled;
     and,
5.   NBTel shall comply with all United States export or technology transfer
     restrictions at all times in connection with the Software.

                                       30
<PAGE>

                                 Schedule "F"
                                 -----------

                        MUTUAL NON-DISCLOSURE AGREEMENT

THIS AGREEMENT made as of the this day of  , 1999

BETWEEN
                              ImagicTV Inc., a corporation incorporated under
                              the laws of Canada and having a place of business
                              in the City of Saint John, in the County of Saint
                              John, Province of New Brunswick, ("ImagicTV").

                              AND

                              NBTel Inc., a Canadian corporation with its
                              principal place of business at One
                              Brunswick Square, Saint John, New
                              Brunswick, Canada, (hereinafter "NBTel")

          WHEREAS both ImagicTV and NBTel1 possesses certain confidential
proprietary information and intellectual property;

          AND WHEREAS, ImagicTV and NBTel intend to participate in a program of
discussions, correspondence, and/or planning sessions in connection with the
pursuit, evaluation and/or feasibility of a business relationship, and/or
consummation of a transaction (the "Program") which may result in the mutual
exchange of certain confidential information and intellectual property as herein
defined;

          AND WHEREAS, ImagicTV and NBTel have agreed to enter into this
agreement (the "Agreement") to prevent the unauthorized use and disclosure of
ImagicTV's confidential proprietary information and intellectual property;

          NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the
mutual covenants and conditions hereinafter contained, the parties hereto agree
as follows:

     I.   Confidential Information

          For purposes of this Agreement, "Confidential Information" shall mean
          the information, data, know-how, trade secrets, strategic and
          development plans, business plans, co-developer identities, data,
          business records,

                                       31
<PAGE>

          customer lists, any and all versions of software and related
          documentation, and all other information and documentation which is
          related to ImagicTV's DTV Manager System and NBTel's systems and
          operations which may be disclosed between each party or to which
          either party may be provided access by the other party or others in
          accordance with this Agreement, or which is generated as a result of
          or in connection with the Program, which is not generally available to
          the public.

     II.  Exceptions

          "Confidential Information" will not include information which the
          receiving party can establish (a) was, on the date of this Agreement,
          generally known to the public; or (b) became generally known to the
          public after the date of this Agreement other than as a result of the
          act or omission of the receiving party; or (c) was rightfully known to
          the receiving party prior to that party's leaming or receiving the
          same from the other party; or (d) is or was disclosed by the
          disclosing party to third parties generally without restrictions; or
          (e) the receiving party lawfully received from a third party without
          the third party's breach of agreement or obligation of trust; or (f)
          was independently developed by the receiving party; or (g) was
          disclosed pursuant to the order of a court or other government body,
          or as required by law.

     III. Intellectual Property

          For the purposes of this Agreement, "Intellectual Property" shall mean
          any and all intellectual property to which the disclosing party has
          proprietary rights and may include "Confidential Information" which is
          related to ImagicTV's DTV Manager System and NBTel's operations and
          systems, which may be disclosed between each party or to which either
          party may be provided access by the other party or others in
          accordance with this Agreement, or which is generated as a result of
          or in connection with the Program.

     IV.  Nondisclosure Obligations

          Each party considers all of its Confidential Information and
          Intellectual Property to be propriety.  All of the disclosing party's
          Confidential Information and Intellectual Property shall at all times,
          and throughout the world, remain the property of the disclosing party
          exclusively, and all applicable rights in patents, copyrights and
          trade secrets shall remain in the disclosing party exclusively.  The
          receiving party promises and agrees to

                                       32
<PAGE>

          receive and hold the Confidential Information and Intellectual
          Property in confidence.

          Without limiting the generality of the foregoing, the receiving party
          further promises and agrees: (a) to protect and safeguard the
          Confidential Information and Intellectual Property against
          unauthorized use, publication or disclosure; (b) not to use any of the
          Confidential Information and Intellectual Property except for the
          Program; (c) not to, directly or indirectly, in any way, reveal,
          report, publish, disclose, transfer or otherwise use any of the
          Confidential Information and Intellectual Property except as
          specifically authorized by disclosing party in accordance with this
          Agreement.  (d) not to use any Confidential Information and
          Intellectual Property to compete or obtain advantage vis a vis
          disclosing party in any commercial activity contemplated by the
          parties in connection with the Program; (e) to restrict access to the
          Confidential Information and Intellectual Property to those of its
          officers, directors, and employees who clearly need such access to
          carry out the Program; (f) to advise each of the persons to whom it
          provides access to any of the Confidential Information and
          Intellectual Property, that such persons are strictly prohibited from
          making any use, publishing or otherwise disclosing to others, or
          permitting others to use for their benefit or to the detriment of
          disclosing party, any of the Confidential Information and Intellectual
          Property, and, upon request of disclosing party, to provide disclosing
          party with a copy of a written agreement to that effect signed by such
          persons; and (g) to comply with any reasonable security measures
          requested in writing by disclosing party.

     V.   No Right to Confidential Information and Intellectual Property

          Each party hereby agrees and acknowledges that no license, either
          express or implied, is hereby granted with respect to any of the
          Confidential Information and Intellectual Property.  Each party
          further agrees that all inventions, improvements, copyrightable works
          and designs relating to machines, methods, compositions, or products
          of disclosing party directly resulting from or relating to the
          Confidential Information and Intellectual Property and the right to
          market, use, license and franchise the Confidential Information and
          Intellectual Property or the ideas, concepts, methods or practices
          embodied therein shall be the exclusive property of the disclosing
          party, and the receiving party has no right or title thereto.

     VI.  No Solicitation of Employees

                                       33
<PAGE>

           Each party agrees that it will not, for a period of three (3) years
           from the date of this Agreement, initiate contact with the other
           party's employees in order to solicit, entice or induce any such
           employee to terminate their employment effective during the term of
           this Agreement for the purpose of accepting employment with the other
           party.

     VII.  Enforcement

           Each party acknowledges and agrees that damages may not be an
           adequate remedy to compensate the other party for any breach of the
           obligations contained in this Agreement and, accordingly, agrees,
           that in addition to any other remedies available, the disclosing
           party shall be entitled to obtain relief by way of temporary or
           permanent injunction to enforce the obligations contained in this
           Agreement.

     VIII. Indemnity

           Each party agrees to indemnify and save harmless the other party
           against any and all losses, damages, claims, or expenses incurred or
           suffered as a result of the other party's breach of this Agreement.

     IX.   Term and Termination.

           This Agreement shall commence on the date first written above and
           shall automatically terminate three (3) years thereafter; however,
           either party may terminate this Agreement at any time prior thereto
           upon thirty (30) days prior written notice to the other party. Each
           party's obligations with respect to each item of the Confidential
           Information and Intellectual Property which it learns or receives
           from the other prior to the date of termination of the Agreement
           shall terminate three (3) years after the date of disclosure of such
           time of Confidential Information and Intellectual Property.
           Immediately after termination of this Agreement, each party shall
           return to the other party all of the other party's Confidential
           Information and Intellectual Property which was disclosed in, or is
           then represented in, tangible form.

     X.    Severability

           Each clause in this Agreement is severable from the others and should
           any of the clauses be unenforceable, then the remainder of the
           Agreement shall continue in full force and effect notwithstanding the
           unenforceability of any clause. If any part of this Agreement shall
           be declared invalid or

                                       34
<PAGE>

           unenforceable by a court of competent jurisdiction, it shall not
           affect the validity of the balance of this Agreement.

     XI.   Successors and Assigns.

           Neither party shall have the right to assign its rights under this
           Agreement, whether expressly or by operation of law, without the
           written consent of the other party. This Agreement and the
           obligations hereunder shall be binding on any successors and
           permitted assigns.

     XII.  Governing Law.

           This Agreement shall be governed by and construed in accordance with
           the laws of the Province of New Brunswick.

     XIII. Entire Agreement

           The terms and conditions herein constitute the entire agreement and
           understanding of the parties and shall supersede all communications,
           negotiations, arrangements and agreements, either oral or written,
           with respect to the subject matter hereof. No amendments to or
           modifications of this Agreement shall be effective unless reduced to
           writing and executed by the Parties hereto. The failure of either
           party to enforce any term hereof shall not be deemed a waiver of any
           rights contained herein.

           IN WITNESS WHEREOF the parties hereto have executed these presents as
of the day and year first hereinbefore written.

SIGNED, SEALED and DELIVERED  )
     in the presence of       )    ImagicTV Inc.
                              )
                              )    per_______________________
                              )
                              )    NBTel Inc.
                              )
                              )    per_______________________
                              )

                                       35
<PAGE>

                                 Schedule "G"
                                 ------------

A DEFINITION OF YEAR 2000 CONFORMITY
REQUIREMENTS

Preamble to the Summer 1998 amendment

BSI DISC originally published PD2000-1 in January 1997 and it has been widely
adopted. A review of the document was conducted by the responsible committee
(BDD/1/3) in the spring of 1998 taking into account comments received. The
committee considered that amendments to the fundamental conformity requirements
were neither necessary nor desirable. The Definition and the four Rules are
unchanged but, to add value to the document and aid its interpretation, the
Amplification sections have been amended. This document, PD2000-1:1998, replaces
the previous version of PD2000-1 but does not change its requirements. An
additional document PD2000-4, entitled "PD2000-1 in Action" will provide further
information on PD2000-1:1998 together with information on its use.

Paragraph numbers have been enhanced in the Amplification section to aid
referencing and substantial revisions to the document are indicated by side
lines against the changed text.

Introduction

This document addresses what is commonly known as Year 2000 conformity (also
sometimes known as century or millennium compliance).  It provides a definition
of this expression and requirements that must be satisfied in equipment and
products which use dates and times.

It has been prepared by British Standards Institution committee BDD/l/3 in
response to demand from UK industry, commerce and the public sector. It is the
result of work from the following bodies whose contributions are gratefully
acknowledged: BT, Cap Gemini, CCTA, PricewaterhouseCoopers, Halberstam Elias,
ICL, National Health Service, National Westminster Bank. Additionally, BSI DISC
acknowledges the support of the Electronics and Information Industries Forum
(EIIF), Action 2000, Taskforce 2000 and Digital Equipment as well as the
original bodies for their participation in the review of this document.

BSI DISC would also like to thank the following organizations for their support
and encouragement in the development of this definition: Barclays Bank, British
Airways, Cambridgeshire County Council, Computer Software Services Association,
Department of Health, Ernst & Young, Federation of Small Businesses, IBM, ICI,
National Power, Paymaster Agency, Prudential Assurance, Reuters, Tesco Stores.

While every care has been taken in developing this document, the contributing
organizations accept no liability for any loss or damage caused, arising
directly or indirectly, in connection with reliance on its contents except to
the extent that such

                                       36
<PAGE>

liability may not be excluded at law. Independent legal advice should be sought
by any person or organization intending to enter into a contractual commitment
relating to Year 2000 conformity requirements.

This entire document or the Definition section (including the four Rules) may be
freely copied provided that the text is reproduced in full, the source
acknowledged and the reference number of this document is quoted. It is
recommended that the Amplification section be included. References to "PD2000-
1:1998" shall be interpreted as meaning the entire document.

THE DEFINITION

Year 2000 conformity shall mean that neither performance nor functionality is
affected by dates prior to, during and after the year 2000.
In particular:

Rule 1   No value for current date will cause any interruption in operation.
Rule 2   Date-based functionality must behave consistently for dates prior to,
         during and after year 2000.
Rule 3   In all interfaces and data storage, the century in any date must be
         specified either explicitly or by unambiguous algorithms or inferencing
         rules.
Rule 4   Year 2000 must be recognized as a leap year.

                                       37
<PAGE>

AMPLIFICATION OF THE DEFINITION AND RULES

1.     General Explanation

1.1    Problems can arise from some means of representing dates in computer
equipment and products and from date-logic embedded in purchased goods or
services, as the year 2000 approaches and during and after that year.  As a
result, equipment or products, including embedded control logic, may fail
completely, malfunction or cause data to be corrupted.

1.2    To avoid such problems, organizations must check, and modify if
necessary, internally produced equipment and products and similarly check
externally supplied equipment and products with their suppliers. The purpose of
this document is to allow such checks to be made on a basis of common
understanding.

1.3    Where checks are made with external suppliers, care should be taken to
distinguish between claims of conformity and the ability to demonstrate
conformity.

2      Amplification of the definition

2.1    PD2000- 1 (all editions) is solely concerned with the performance and
functionality of a single version, release or system.  It does not address
differences in performance or functionality between different versions, releases
or systems.

4.3    Variations in performance immeasurably small in the context of use do not
make a version, release or system non-conformant.

3      Amplification of the Rules

3.1    Rule 1
3.1.1  This rule is sometimes known as general integrity.
3.1.2  If this requirement is satisfied, roll-over between all significant time
demarcations (e.g. days, months, years, centuries) will be performed correctly.
3.1.3  Current date means today's date as known to the equipment or product,
i.e. the actual date of operation.
[NOTE - this refers to normal operation and does not prevent testing.]

3.2    Rule 2
3.2.1  This rule is sometimes known as date integrity.
3.2.2  This rule means that all equipment and products must calculate,
manipulate and represent dates correctly for the purposes for which they were
intended.
3.2.3  The meaning of functionality includes both processes and the results of
those processes.
3.2.4  If desired, a reference point for date values and calculations may be
added by organizations; e.g. as defined by the Gregorian calendar.
3.2.5  No equipment or product shall use particular date values for special
meanings; e.g. "99" to signify "no end value" or "end of file" or "00" to mean
"not applicable" or "beginning of file" unless the values in question lie
outside its possible date range.

                                       38
<PAGE>

3.3    Rule 3

3.3.1  This rule is sometimes known as explicit/implicit century.
3.3.2  It covers two general approaches:
       (a)     explicit representation of the year in dates:  e.g. by using four
digits or by including a century indicator.  In this case, a reference may be
inserted (e.g. 4-digit years as allowed by ISO 8601:1988) and it may be
necessary to allow for exceptions where domain-specific standards (e.g.
standards relating to Electronic Data Interchange, Automatic Teller Machines or
Bankers Automated Clearing Services) should have precedence.
       (b)     the use of inferencing rules:  e.g. two-digit years with a value
greater than 50 imply l9xx, those with a value equal to or less than 50 imply
20xx.  Rules for century inferencing as a whole must apply to all contexts in
which the date is used, although different inferencing rules may apply to
different date sets.  Where any date element is represented without a century,
the correct century shall be unambiguous for all manipulations involving that
element.
3.4    Rule 4

3.4.1  A leap year is defined in ISO 8601:1988 (amended in 1991) as follows:
"year, leap:  In the Gregorian calendar, a year which has 366 days.  A leap year
is a year whose number is divisible by four an integral number of times, except
that if it is a centennial year it shall be divisible by four hundred an
integral number of times."
3.4.2  Thus, for example, 2000 is a leap year but 1900 is not.

4      General Notes

4.1    For Rules 1 and 2 in particular, it is recommended that the allowable
ranges for values of current date and dates to be manipulated be documented,
recognizing that all systems have some limitation on the valid date ranges.  The
ranges may relate to one or more of the feasible life-spans of equipment or
products or the span of dates required to be represented by the organization's
business processes.
4.2    Tests for specifically critical dates may also be added (e.g. for leap
years, end of year, etc.).  Organizations may wish to append additional material
in support of local requirements.
4.3  Where the term "century" is used, clear distinction should be made between
     the "value" denoting the century (e.g. 20th) and its representation in
     dates (e.g. l9xx); similarly, 21st and 20xx.

                                       39
<PAGE>

                            NOVATION AND AMENDMENT
                                      TO
                              LICENSING AGREEMENT
                                      AND
              SET TOP BOX SUPPLY AND SOFTWARE LICENSING AGREEMENT

     This Novation and Amendment to a Licensing Agreement and Set Top Box Supply
and Software Licensing Agreement (the "Novation") is entered into between

                                ImagicTV Inc. (hereinafter "ImagicTV"), a
                                Canadian corporation with its principal place of
                                business at One Brunswick Square, Suite 1400,
                                Saint John, New Brunswick, Canada

                                - and -

                                NBTel Inc. (hereinafter "NBTel"), a Canadian
                                corporation with its principal place of business
                                at One Brunswick Square, Saint John, New
                                Brunswick, Canada

                                - and -

                                Aliant Telecom Inc. (hereinafter "Aliant") a
                                Canadian corporation having an office at One
                                Brunswick Square, Saint John, New Brunswick,
                                Canada

     WHEREAS ImagicTV and NBTel have entered into a Licensing Agreement for the
use of ImagicTV's DTV Manager System software dated the 19/th/ day of April,
1999 (the "Software License") a copy of which is attached hereto as Schedule
"A";

     AND WHEREAS ImagicTV and NBTel have entered into a Set Top Box Supply and
Software Licensing Agreement relating to the supply and use of set top boxes
which run in conjunction with the ImagicTV DTV Manager System software, such
agreement dated the 19/th/ day of April, 1999 (the "PSA") a copy of which is
attached hereto as Schedule "B";

     AND WHEREAS NBTel wishes to assign all its rights and obligations under
both the Software License and the PSA (hereinafter collectively referred to as
the
<PAGE>

"Agreements") to its parent company, Aliant, and NBTel wishes to be released
from its obligations under the Agreements and is willing to release any and all
rights it may have under the Agreements;

     AND WHEREAS ImagicTV has agreed to release NBTel from all its obligations
under the Agreements on the condition that Aliant undertakes to assume all
obligations under such Agreements and to be bound by their terms and conditions;

     AND WHEREAS ImagicTV is willing to provide an additional functionality to
the DTV Manager Software and to expand the geographic territory for both the
Software License and the PSA in favour of Aliant upon payment of the fees
prescribed herein;

NOW THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.   Novation

1.1  Aliant hereby agrees to assume all obligations under the Agreements and to
be bound by their terms and conditions in all respects as if it were an original
party to the Agreements in place of NBTel.

1.2  ImagicTV hereby releases NBTel from all claims and demands against NBTel in
respect of the Agreements, and accepts Aliant in place of NBTel as the
substituted party to the Agreements, and agrees with Aliant to be bound by the
terms and conditions of the Agreements in all respects as if Aliant had been
originally named in the Agreements as a party to the Agreements in place of
NBTel.

2.   Amendments to the Software License

     In consideration for the mutual covenants as set out herein, the parties
hereby agree to amend the terms and conditions of the Software License as
follows:

2.1  The definition of "DTV Manager System" in paragraph 1.1 will be amended as
follows:

     1.1  "DTV Manager System" shall mean collectively the object code version
          of the software, the functionality of which is described in the
          Product Description attached as Schedule "A" hereto, as may be amended
          by the parties from time to time, and includes SoftTV as defined here,
          as well as the accompanying user guides and manuals for use of the
          software, and any Updates thereto.

2.2  The Product Description for the DTV Manager System as set out in Schedule
"A" to the Software License will be amended accordingly.

                                      -2-
<PAGE>

2.3  The definition of "SoftTV" will be added to the Definition section as
section 1.17 as follows:

     1.17 "SoftTV" shall mean the object code version of the software, the
     functionality of which is described in the Product Description attached as
     Schedule "A" hereto, as may be amended by the parties from time to time, as
     well as the accompanying user guides and manuals for use of the software,
     and any Updates thereto.

2.4  The definition of "Territory" in paragraph 1.14 will be amended as follows:

     1.14 "Territory" shall mean New Brunswick, Nova Scotia, Prince Edward
     Island and Newfoundland.

2.5  The commensurate paragraph in paragraph 2.1 will be amended to reflect an
exclusive use of DTV Manager System in the expanded Territory.

     2.1  Subject to the terms and conditions of this Agreement and in
          consideration of the fees specified in Schedule "D" ("Fees and
          Payments"), ImagicTV hereby grants to Aliant an exclusive, non-
          assignable perpetual license in the Territory to use the DTV Manager
          System as follows: ...

2.6  Section 9 entitled "Indemnification and Warranties", paragraph 9.1 will be
amended as follows:

     9.1  ImagicTV will defend and indemnify Aliant against a claim that the DTV
          Manager System infringes a U.S. or Canadian copyright or patent, ...

2.7  Schedule "D" entitled "Fees and Payments" will be amended to reflect the
additional consideration being paid by Aliant for the grant of license to the
expanded and exclusive territory and for the use of SoftTV.  Such amendments to
Schedule "D" will appear as paragraph five (5) as follows:

          5.   Territory Expansion and Exclusivity Fee and SoftTV License Fee

          In addition to the License Fees set out in paragraph 1 and 2 herein,
          and in consideration for expanding the Territory, providing
          exclusivity, and expanding the grant of license to DTV Manager System
          to include SoftTV, Aliant shall pay to ImagicTV the non-refundable,
          non-cancelable fees as described in paragraphs 5.A and 5.B below and
          the SoftTV subscription fees in accordance with paragraph 5.C
          ("Subscription Fees").  These Subscription Fees are a one time charge
          invoiced as part of the Quarterly

                                      -3-
<PAGE>

          Subscriber Report and will commence the earlier of the date on which
          Aliant charges its Subscribers for the Aliant service, or on December
          31/st/, 1999.

          a)   $500,000    January 31, 2000
               $200,000    January 31, 2001
               $200,000    January 31, 2002

          b)   Payment due on January 31, 2000 of $500,000 is based on ImagicTV
               having delivered Release 2.0.10 of DTVManager and Release 1.0 of
               SoftTV.

          c)   Subscription Fees for SoftTV are estimated to be $60.00 per
               Subscriber, final pricing paid by Aliant will be no lower than
               $48 per Subscriber and no higher than $72 per Subscriber.
               ImagicTV will provide final Subscriber fees to Aliant by May 15,
               2000.

2.8  The Mutual Non-Disclosure Agreement attached to the Software License as
Schedule "F" ("NDA") shall be amended to reflect that the document was executed
by the parties on April 11, 1998 and the parties acknowledge and accept that
such is the date of execution of the said NDA.

3.   Amendments to the PSA

3.1  The definition of "Territory" in paragraph 1(g) will be amended as follows:

     1.(g) "Territory" shall mean the provinces of New Brunswick, Nova Scotia,
     Prince Edward Island and Newfoundland.

4.   Survival of Original Agreements

     All other terms of the Software License and the PSA shall remain in force
and effect modified only to the extent to be in accordance with this Novation
Agreement.

     This Agreement shall be binding on each party's successors and assigns.

     This Agreement shall be effective as of the 16/th/ December, 1999.

                                      -4-
<PAGE>

"NBTel"                            )     "ImagicTV"
                                   )
NBTel Inc.                         )     ImagicTV Inc.
                                   )
By:__________________________      )     By:_____________________
                                   )
Name:________________________      )     Name:___________________
                                   )
Title:_______________________      )     Title:__________________

Aliant.

By:__________________________

Name:________________________

Title:_______________________

                                      -5-<PAGE>

                                                                    EXHIBIT 10.9

                                       1

                             EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as of
Monday, the 17/th/ day of July, 2000, by and between ImagicTV Inc. (the
"Company") and Marcel LeBrun (the "Employee").

     THIS AGREEMENT WITNESSES that in consideration of the covenants and
agreements contained herein, the parties hereto agree as follows:

                                   ARTICLE 1
                                  EMPLOYMENT

     On the terms and subject to the conditions contained in this Agreement, the
Company hereby employs the Employee, and the Employee hereby accepts employment,
to serve the Company in the position described in Article 3.

                                   ARTICLE 2
                                     TERM

     The term of the Employee's employment commenced on,  the 27/th/ day of
January, 1998 (the "Commencement Date"), and shall be for the period ending on
the second anniversary of the Commencement Date, unless sooner terminated
pursuant to the terms of the Agreement, or by reason of the bankruptcy or
insolvency of the Company, in which case this Agreement will be of no further
effect.  Such employment shall be automatically renewed on the second
anniversary of the Commencement Date and each anniversary thereafter for a
period ending immediately prior to the following anniversary, unless terminated
in accordance with the terms of Article 6. This Employment Agreement replaces
any existing written or oral Employment Agreement between the parties.

                                   ARTICLE 3
                                    DUTIES

3.1 Position

a)   During the term of this Agreement, the Employee will serve as President and
CEO (Chief Executive Officer) of the Company. The Employee will have the usual
and customary duties of President and CEO, which without limitation include
those responsibilities as set out in Schedule C hereto. Subject to the direction
and control of the Board of Directors of the Company, (the " Board of
Directors"), the Employee will have such executive power and authority as is
consistent with the office of and as is necessary for him to discharge his
duties as President and CEO. The Employee shall also perform such other duties
not inconsistent with the duties of President and CEO as may be assigned to him
from time to time by the Board of Directors. Initially the Employee's primary
office location will be working from the Executive head office in Saint John,
New Brunswick, Canada.

b)   The Employee agrees that it is expected that the Company will transfer him
to Raleigh, North Carolina during the term. When the Company transfers the
Employee to Raleigh, North Carolina, the Company will pay the following
reasonable and receipted relocation expenses to the Employee, in conjunction
with the move including: moving expenses ( packing, unpacking and shipping),
real estate fees (selling); utility disconnect and connect, travel, meals and
accommodation.
<PAGE>

                                       2

c)   The work schedule for the Employee shall be consistent with the
ordinary office hours of the Company at the Employee's place of employment, as
may be amended from time to time. The Employee agrees that as a management level
employee, he will from time to time be required to work beyond regular office
hours. The Employee acknowledges and agrees that no overtime payment shall be
made for such work beyond regular office hours.

3.2 Outside Activities

The Employee will devote his full time, energy, skill and best efforts to the
performance of his duties hereunder, in a manner which will faithfully and
diligently further the business and interests of the Company, including, but not
limited to, attaining performance objectives such as revenue and profit goals
established by the Board of Directors for the Company but he may make or manage
personal investments of his choice and may serve as a director of any business
enterprise (not directly or indirectly in competition with the Company) or civic
organisation, provided that such service does not materially interfere with the
performance of his duties hereunder.

3.3 Rules and Regulations

     The Employee shall comply, while on the premises used by the Company, while
conducting his duties under this Agreement, or when otherwise applicable, with
all the rules and regulations of the Company from time to time in force which
are brought to his notice or of which he could reasonably be aware.

                                   ARTICLE 4
                                 COMPENSATION

     During the term of this Agreement, and during any severance or notice
periods, the Employee shall receive the following compensation and fringe
benefits:

4.1 Base Salary

     The Employee shall receive a base salary (his "Base Salary") at an annual
rate of not less than $220,000.00 USD paid bi-weekly in equal installments.
While located in Canada, the Employee will be paid in Canadian dollars. Should
the Employee be relocated to the US, the Employee may be enrolled in a payroll
and benefits plan administered by a third party and will be paid in US dollars.
Acknowledging that the exchange rate will fluctuate, the Company will consider
the changes in the exchange rate on an annual basis, in conjunction with the
Employee's performance review. The Employee's Base Salary rate shall be
maintained at competitive market rates and shall be subject to annual review of
the Board of Directors.

4.2 Incentive Compensation

     Beginning with the Fiscal year 2001, the Employee shall be eligible to
receive additional compensation by way of a bonus ( the "Bonus") in respect of
each fiscal year of the Company during the term of this Agreement no later than
120 days following the end of each period or fiscal year. The Bonus will be in
the form of a cash payment in the amount of 0-50% of Base Salary with a target
of 35% of the Employee's Base Salary if the Company achieve certain targeted
profit and revenue performance levels as set forth in the chart below (the
"Plan"). In the event that the Company does not achieve the targeted gross
revenues as set forth in the Plan, the amount of the Bonus shall be in an amount
as set by the Board based on the Employee's performance and also based on
principles of reasonableness considering the actual gross revenue earned by the
Company.
<PAGE>

                                       3

The Board of Directors of the Company, with the consent of the Employee, have
the authority to amend these figures.

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------
                                              Earnings Before
                                              ---------------
                                        Interest, Tax, Depreciation
                                        ---------------------------
                                              and Amortisation
                                              ----------------
        Period                                   ("EBITDA")                      Gross Revenue
        ------                                   ----------                      -------------
                                       -----------------------------------------------------------------
                                                                $US Millions
                                                                ------------
--------------------------------------------------------------------------------------------------------
<S>                                     <C>                             <C>
Fiscal year ending February 28/th/,
 2001                                                                                  $10 Million USD
--------------------------------------------------------------------------------------------------------
Fiscal year ending February 28/th/,      100% of duly authorised               100% of duly authorised
 2002                                  business plan as approved by       business plan as approved by
                                       the Board                                             the Board
--------------------------------------------------------------------------------------------------------
Fiscal year ending February 28/th/,      100% of duly authorised               100% of duly authorised
 2003                                  business plan as approved by       business plan as approved by
                                       the Board                                             the Board
--------------------------------------------------------------------------------------------------------
</TABLE>

4.3 Benefits

     For the term of this Agreement, and during any severance or notice periods,
the Company agrees:

     a)  to provide to the Employee a car allowance of    $1585.00 per month

     b)  to provide, under the ImagicTV Savings Incentive Plan, a contribution
     that matches the contribution of the employee up to a maximum of 6% of your
     annual salary

     c)  should the Company determine to relocate the Employee to the United
     States at a later date, the Company will pay the Employee, in Canadian
     dollars, toward receipted and reasonable relocation expenses in conjunction
     with the move including: moving expenses - packing and unpacking and
     shipping, real estate fees (selling); utility disconnect and connect,
     travel, meals and accommodation to the United States. In addition, the
     Company will assume all reasonable costs and expenses associated with
     applying for and obtaining an appropriate work-authorized temporary visa
     status in the US and for dependent visa classification for the immediate
     members of Employee's family (if applicable).

4.4 Company Benefit Plans

     The Employee shall also participate in a medical, dental, prescription,
life, short-term and long-term disability, accidental death and dismemberment
and travel plan to be approved by the Board of Directors, as it may be modified
from time to time in the Company's sole discretion. The Employee agrees to
accept a change in the administration of such plan as required by the Company.
<PAGE>

                                       4

4.5 Vacation; Holidays

     The Employee shall be entitled to 4 weeks of annual vacation time at such
times that do not unreasonably interfere with the Company's business. Such
vacation time shall not be carried into subsequent years, without prior written
consent of the Board of Directors. The Employee shall be entitled to all
statutory holidays regularly observed by the Company.

4.6 Options

     The Employee shall participate in the Company's ESOP Employee share option
plan as established by the Boards of Directors of the Company, subject to
execution by the Employee of an option agreement in the form prescribed by the
Company from time to time. The Employee's entitlements under such plans will be
determined from time to time by the Board of Directors of the Company. and shall
be subject to the terms and conditions set out in the Management Employment
Option Agreement attached as Schedule A hereto. The Employee acknowledges and
agrees that such options and the underlying shares shall be subject to the terms
and conditions of the Unanimous Shareholders' Agreement, as amended or
superseded, dated December 17th, 1999 among the Company and its shareholders.

                                   ARTICLE 5
                           REIMBURSEMENT OF EXPENSES

     During the term of the Agreement, the Company shall promptly reimburse the
Employee for all reasonable and necessary business expenses incurred by him in
promoting the business of the Company, upon receipt of itemised vouchers
therefor and in accordance with the policies and procedures of the Company as in
effect from time to time for its officers. In addition, the Company shall
promptly reimburse the Employee for his professional training and education as
well as membership fees, required to maintain his good standing with relevant
professional associations.

                                   ARTICLE 6
                                  TERMINATION

6.1 Death or Disability

(a) Death

     The Employee's employment by the Company shall terminate automatically upon
the death of the Employee, in which event the Company shall remain liable to the
Employee's estate/heirs/devises only for the then accrued but unpaid
compensation and benefits (including, for greater certainty, options granted
under Section 4.6 which have vested in accordance with their terms) vested at
the time of death, payable to the Employee under Article 4. All payments shall
be made to the Employee's estate, payable to the named beneficiary under the
terms of the plan, or otherwise in accordance with the Company's policies and
applicable plans the current version of which have been made available to the
Employee for his inspection and review.
<PAGE>

                                       5

(b) Disability

     The Company may terminate the Employee's employment with the Company if the
Employee becomes unable to perform the duties to be performed by him hereunder
due to a physical, mental or other disability for a period of at least 6
consecutive months upon at least 60 days' prior written notice to the Employee,
in which event the Company shall remain liable to the Employee only for the then
accrued but unpaid compensation and benefits vested at the date of termination
payable to the Employee under Section 4 and all payments shall be made to the
Employee, his legal representative or otherwise in accordance with the Company's
policies and applicable plans, the current version of which have been made
available to the Employee for his inspection and review. Notwithstanding the
above, in such a case the Employee shall continue to be eligible for short term
and long term disability benefits, subject to the terms of such plans and
continued availability subject to the carriers acceptance of the claim.

6.2 Termination by the Company

(a) Termination for Cause

     The Company may at any time terminate the Employee's employment for just
cause, the notice of which shall specifically set forth the nature of the breach
that is the reason for such termination. For purposes of this Agreement, "just
cause" shall include the following: (i) dishonesty or fraud; (ii) conviction of
a felony or an indictable offence; and (iii) gross negligent performance of
duties as set out herein which remain unsatisfactorily remedied, notwithstanding
a previous written notice given to the Employee, or (iv) an act of material
insubordination or against the best interest of the Company in a manner that has
or could have a material impact on the financial condition of the Company.

     Upon termination under this Section 6.2(a), the Employee shall be entitled
to no further compensation or benefits whatsoever except for Base Salary due and
payable for services performed and benefits vested pursuant to Section 4 before
such termination under the policies of the Company as in effect at that time.

     No prior notice will be required for termination with cause.

(b) Termination without Cause

     The Board of Directors of the Company may terminate the Employee's
employment without cause at any time. In such event, the Employee shall be
entitled to monthly severance payments equal to one-twelfth of the Base Salary
for one year plus coverage for any benefits and Bonus to which the Employee may
be entitled pursuant to Article 4, determined in accordance with Section 6.6.

6.3 Termination by the Employee

     If the Employee terminates his employment with the Company following a
substantial breach (as defined below), the Employee shall be entitled to the
severance payment and benefits as provided in Section 6.2(b). As used in this
Section, "substantial breach" shall mean either (i) the Employee's demotion,
without his consent to a position or duties materially inconsistent with or
inferior to those specified in Section 3; or (ii) the failure by the Company to
provide compensation and other vested benefits to the Employee in accordance
with Section 4, and the failure of the Company to correct such breach within
thirty days after written notice from the Employee of its occurrence.
<PAGE>

                                       6

6.4 Change of Control

     The Company may terminate the Employee's employment in the event of a
change of control of the Company. Such action may constitute termination without
cause. The Employee shall also have the right to terminate his employment in the
event of a change of control, but shall not in such event be entitled to
severance pay except for the Base Salary and Bonus in accordance with sections
4.1 and 4.2 respectively and the Options under section 6.7.

  For purposes of Article 6, change in control shall mean the acquisition by a
person of 51% or more of the issued and outstanding voting shares of the
Company.

6.5 Resignation

     On any termination, the Employee will tender his resignation as an officer
of the Company and any subsidiaries if requested by the Company.

6.6 Bonus and Options on Termination

(a) Bonus on Termination

     The amount of the Bonus to which the Employee shall be entitled pursuant to
Section 4.2 for the portion of the period specified therein up to the time of
termination of the Employee's employment, shall be equal to the pro-rated
portion of the Employee's earned Bonus in such fiscal year, except that in the
event the employment is terminated for cause, the Employee shall not be entitled
to any Bonus.

(b) Options on Termination

     In the event of termination of the Employee's employment:

     (i)   because of death, disability or any other reason except (A)
     termination with or without cause or (B) as a result of a change of
     control, the Employee or his estate, as the case may be, shall have 90 days
     from termination to exercise those options which are already vested in
     accordance with the vesting schedule set out in the applicable option
     agreement (the "Vested Options"), after which all options will lapse;

     (ii)  by the Company without cause, the Employee shall be entitled, during
     the 90 days following termination, to exercise the Vested Options and those
     unvested options held by the Employee which otherwise would have vested in
     the 12 month period following termination , whether or not such options
     have otherwise vested, after which all options will lapse; or,

     (iii) by the Company with cause, the Employee shall have no right to
     exercise any options, whether vested or not, except for those vested
     options for which a Notice of Exercise was received by the Company prior to
     the notice of termination.

6.7 Options on Change of Control

     In the event of a change of control of the Company, the Employee shall be
entitled, during the 90 days following change for control to exercise the Vested
Options and all other options held by the
<PAGE>

                                       7

Employee at such time, whether or not such options have otherwise vested, after
which time all options will lapse.

6.8 Excess Parachute Payment

     In the event a change of control of the Company occurs and it is determined
that the Employee has received an "excess parachute payment" under Internal
Revenue Code Section 280G, the Company agrees to reimburse the Employee for the
actual amount of Excise Tax imposed on the Employee pursuant to Internal Revenue
Code Section 4999 (the "Excise Tax Amount") plus an amount (the "Gross Up
Amount") sufficient to offset the additional income taxes payable by the
Employee by reason of receiving the Excise Tax Amount and the Gross Up Amount. .
This only applies should the Employee be relocated to the United States.

                                   ARTICLE 7
                             RESTRICTIVE COVENANTS

7.1 Non-Disclosure

     The Employee recognises that the Company, and its affiliates and
subsidiaries are engaged in a continuous program of software research and
development and the marketing of software products and related services. The
Employee also recognises the importance of protecting the trade secrets,
confidential information, partner and customer relationships of the Company and
other proprietary information and related rights acquired through the
expenditure of time, effort and money by the Company. In consideration of the
foregoing and the salary and benefits contemplated by this Agreement, the
Employee shall comply with the Proprietary Rights Protection Provisions set out
as Schedule "B" to this Agreement.

7.2 Non-Competition

     The Employee recognises that, in light of his position with the Company
under this Agreement, his employment with or investment in an enterprise in the
business of designing, manufacturing, marketing, selling and/or servicing
equipment or products, including hardware, software and firmware, that competes
with currently offered equipment or products of the Company, those under
development, or those contemplated in any business plan duly approved by the
Company, being the development, delivery and sale of software for digital
interactive television services over a broadband network (the "Business"), would
cause irreparable harm to the Company; therefore, the Employee agrees that
during the period of his employment hereunder and for 12 months thereafter;
                                                      ---------

 (a) neither he nor any spouse, including a common law spouse, will be
     interested, directly or indirectly, as an investor in any other business or
     enterprise substantially similar to the Business (except as an investor in
     securities listed on a national securities exchange or actively traded over
     the counter so long as such investments are in amounts not significant as
     compared to his total investments or to the aggregate of the outstanding
     securities of the issuer of the same class of issue) in Canada, the United
     States, Europe and other markets in which the Company conducts a material
     amount of Business from time to time in the future;

 (b) he will not, directly or indirectly, for his own account or as the
     Employee, officer, director, partner, consultant, shareholder, joint
     venturer or in any other manner whatsoever, engage within Canada, the
     United States, Europe and other markets in which the Company conducts its
<PAGE>

                                       8

     Business from time to time during the aforementioned limitation period
     under this clause 7.2, in any business or enterprise materially similar to
     the Business; and

 (c) he will not directly or indirectly solicit, interfere with or endeavour to
     direct or entice away from the Company any customer, client or any person,
     firm or corporation in the habit of dealing with the Company or interfere
     with, entice away or otherwise attempt to obtain the withdrawal of or hire
     any employee of the Company or.

7.3 Equitable Relief

     The Employee confirms that all restrictions in Article 7 are reasonable and
valid and all defences to the strict enforcement thereof by the Company are
waived by the Employee.  The Employee expressly acknowledges that his covenants
and agreements in this Article 7 are fundamental to the Company and his
engagement by the Company and damages alone will be an inadequate remedy for any
breach or violation of any of the provisions of this Article 7, and that the
Company, in addition to all other remedies, shall be entitled as a matter of
right to equitable relief, including injunctions and specific performance, in
any court of competent jurisdiction.

                                   ARTICLE 8
                                   INSURANCE

     The Employee acknowledges that the Company shall have the right to take out
insurance on the life of the Employee and designate the Company as beneficiary
and agrees for such purposes to submit to all required medical examinations, at
the Company's expense. Notwithstanding the right of the Company to take out
insurance on the life of the Employee, all of the Employee's medical records
shall be confidential to the Employee and the insurance company and the Company
shall have no right of access thereto.

                                   ARTICLE 9
                                 MISCELLANEOUS

9.1 Notices

     Any notice or other communication required or permitted hereunder shall be
in writing and shall be deemed to have been given on the date of delivery if
delivered personally or by overnight courier, or three days after mailing if
mailed by first class certified mail, postage prepaid and return receipt
requested, addressed as follows, providing the postal services are working
normally:

     to the Company:  ImagicTV Inc.
                      One Brunswick Square
                      14/th/ Floor, P.O. Box 303
                      Saint John, New Brunswick
                      E2L 3Y2

                      Attention:  Board of Directors

     to the Employee: Marcel LeBrun, President and CEO
                      548 Lincoln Road
                      Fredericton, NB
                      E3B 5H9
<PAGE>

                                       9

                    or to such address (or to such other person's attention) as
either party may specify in a notice to the other given in accordance with this
Section.

9.2 Assignment

     This Agreement shall be binding upon and shall inure to the benefit of the
respective heirs, executors, administrators, successors, and assigns of the
parties, provided however that the Employee may not assign any obligations
hereunder without the prior written consent of the Company.  The Company may
assign its rights and obligations hereunder only to an affiliate or successor
without the consent of the Employee, provided such assignment is not to an
unfriendly or hostile successor or will not materially affect the Employee's
rights or obligations hereunder.

9.3 Governing Law

     This Agreement shall be governed by and construed in accordance with the
laws of the Province of New Brunswick, Canada applicable to contracts entered
into and performed within the Province of New Brunswick, Canada.

9.4 Cumulation of Benefits

     Any payment made by the Company to the Employee in accordance with the
present agreement shall be added to any amount owing to the Employee or that may
be paid to him under any pension plan, annuity, insurance or any other
employment benefit plan.

9.5 Best Efforts

     The Company will use its best efforts to take such corporate action as is
necessary or appropriate with respect to this Agreement, particularly as it
relates to the plans of the Company.

9.6 Dollar Amounts

     All dollar amounts hereunder are in CDN dollars unless otherwise
specifically stated.

9.7 Entire Agreement

     This Agreement (including any Schedules) constitutes the entire agreement
of the parties with respect to the subject matter hereof and supersedes any and
all prior oral or written negotiations, correspondence, understandings, and
agreements.

9.8 Severability

     The provisions of this Agreement shall be deemed severable. If any
provision of this Agreement shall be held unenforceable by any court of
competent jurisdiction, the remaining provisions shall remain in full force and
effect.
<PAGE>

                                       10

9.9  Modifications

     All modifications to the Agreement must be made in writing and signed by
both parties.

9.10 Counterparts

     The Agreement may be signed in two counterparts (delivered by facsimile
transmission or otherwise), each of which shall be deemed an original and both
of which shall together constitute the same instrument.

9.11 Legal Advice

     The Employee acknowledges having had the opportunity to seek independent
legal advice in connection with the negotiation and execution of this Agreement.

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the day and year first above written.

                                ImagicTV Inc.

                                by:  __________________________

Board of Directors

SIGNED, SEALED AND DELIVERED    )
in the presence of:             )
                                )
                                )
___________________________     )    __________________________
Witness                         )    Marcel LeBrun, President and CEO
<PAGE>

                                      1

                                 SCHEDULE "B"

                   Proprietary Rights Protection Provisions

1.   Definitions:  For the purposes of this Schedule:

(a)  "Company" means ImagicTV Inc., its parent corporation, ImagicTV Inc. and
   its affiliated and associated corporations and subsidiaries ;

(b)  "Confidential Information" includes any of the following: a) any and all
   versions of the software and related documentation owned or marketed or
   developed by the Company, including all related algorithms, concepts, data,
   designs, flowcharts, ideas, programming techniques, specifications and source
   code listings; b) all Developments (as defined below); c) information
   regarding the Company's business operations, methods and practices, including
   marketing strategies, product pricing, margins and hourly rates for staff,
   and information regarding the financial affairs of the Company; d) the names
   of the Company's clients and the names of the Company's business partners and
   suppliers of computer services and software to the Company, and the nature of
   the Company's relationships with these clients, partners and suppliers; e)
   technical and business information of or regarding the clients of the Company
   obtained in order for the Company to provide such clients with software
   products and services, including information regarding the requirements and
   the business operations, methods and practices and products and plans of such
   clients; and f) any other trade secret or confidential or proprietary
   information in the possession or control of the Company; but Confidential
   Information does not include information which is or becomes generally
   available to the public without the Employee's fault or which the Employee
   can establish, through written records, was in his possession prior to its
   disclosure to the Employee as a result of his work for the Company; and

(c)  "Developments include all a) software, documentation, data, designs,
   reports, flowcharts, training materials, trade-marks, specifications and
   source code listings, and any related works, including any enhancements,
   modifications, or additions to the software products owned, marketed or used
   by the Company; and b) inventions, devices, discoveries, concepts, ideas,
   algorithms, formulae, know-how, processes, techniques, systems and
   improvements, whether patentable or not; developed, created, generated or
   reduced to practice by the Employee, alone or jointly with others, during his
   engagement with the Company or which result from tasks assigned to the
   Employee by the Company or which result from the use of the premises or
   property (including without limitation equipment, supplies or Confidential
   Information) owned, leased or licensed by the Company.

2.   Non-Disclosure of Confidential Information:  At all times during and
     ------------------------------------------
subsequent to the termination of his engagement with the Company, the Employee
shall keep in strictest confidence and trust the Confidential Information, the
Employee shall take all necessary precautions against unauthorised disclosure of
the Confidential Information, and the Employee shall not directly or indirectly
disclose, allow access to, transmit or transfer the Confidential Information to
a third party, nor shall the Employee copy or reproduce the Confidential
Information except as may be reasonably required for the Employee to fulfil his
consulting or other obligations to the Company from time to time.
<PAGE>

                                       2

3.   Restricted Use of Confidential Information:
     ------------------------------------------

(a)  At all times during and subsequent to the termination of his engagement
   with the Company, the Employee shall not use the Confidential Information in
   any manner except as reasonably required for the Employee to fulfil his
   consulting or other obligations to the Company from time to time.

(b)  Without limiting his obligations under subsection 3(a) of this Schedule,
   the Employee agrees that at all times during and subsequent to the
   termination of his engagement with the Company, the Employee shall not use or
   take advantage of the Confidential Information for creating, maintaining or
   marketing, or aiding in the creation, maintenance or marketing, of any
   software or services which are competitive with any software, hardware,
   documentation or services developed, owned or marketed by the Company or for
   providing any products and services competitive with the products and
   services provided by the Company.

(c)  Upon the request of the Company, and in any event upon the termination of
   his engagement with the Company, the Employee shall immediately return to the
   Company all materials, including all copies in whatever form, containing the
   Confidential Information which are in his possession or under his control and
   destroy any electronic copies of Confidential Information which may be in his
   possession or control.

4.   Ownership of Confidential Information:
     --------------------------------------

(a)  The Employee acknowledges and agrees that he shall not acquire any right,
   title or interest in or to the Confidential Information.

(b)  The Employee agrees to make full disclosure to the Company of each
   Development promptly after its creation. The Employee hereby assigns and
   transfers to the Company, and agrees that the Company shall be the exclusive
   owner of, all of his right, title and interest to each Development throughout
   the world, including all trade secrets, patent rights, copyrights and all
   other intellectual property rights therein. The Employee further agrees to
   cooperate fully at all times during and subsequent to his engagement with
   respect to signing further documents and doing such acts and other things
   reasonably requested by the Company to confirm such transfer of ownership of
   rights, including intellectual property rights, effective at or after the
   time the Development is created and to obtain patents or copyrights or the
   like covering the Developments. The Employee agrees that the obligations in
   this clause (b) shall continue beyond the termination of his engagement with
   the Company with respect to Developments created during his engagement with
   the Company. In the event that the Employee refuses or neglects to so execute
   any assignments, transfers, consents, or other documents as required herein,
   the Employee hereby irrevocably appoints the the Chairman of the Board of
   Directors of the Company as his true and lawful attorney to execute any such
   documentation.

(c)  The Employee acknowledges the validity of any patents, industrial designs,
   copyrights, software, algorithms, trademarks and other intellectual property
   rights related to the Confidential Information, which may now or in the
   future be owned by the Company. The Employee undertakes not to contest or to
   procure or induce others to contest the validity of the title of the Company
   to any patents, industrial designs, copyrights, trademarks and other
   intellectual property rights related to the Confidential Information, which
   may now or in the future be owned by the Company. The Employee undertakes not
   to contest or to procure or induce others to contest the confidential nature
<PAGE>

                                       3

    of the Confidential Information. The Employee undertakes not to infringe or
    to procure or induce others to infringe any patents, industrial designs,
    copyrights, trademarks or other intellectual property rights related to the
    Confidential Information, which may now or in the future be owned by the
    Company, or to engage in any activity which might undermine the validity or
    strength thereof.

(d)  The Employee agrees that if his work involves any photographic, visual or
    audio recording of him, the Employee hereby grants to the Company the
    royalty-free right to record his likeness and/or voice and/or performance on
    film, tape or other medium, to edit, alter or modify in any way such film,
    tape or other medium, to use any portion thereof in a CD-based product, in
    an on-line format or in any other media (now or hereafter known) including
    video and television, throughout the world in perpetuity and to use his
    name, likeness and voice in relevant publicity. The Employee hereby releases
    the Company and anyone using such film, tape or other material from any and
    all claims, damages, liabilities, costs and expenses which the Employee has
    now or may hereafter have by reason of any use thereof.

(e)  The Employee agrees that the Company, its assignees and their licensees are
    not required to designate the Employee as the author of any Developments.
    The Employee hereby waives in whole all moral rights which the Employee may
    have in the Developments, including the right to the integrity of the
    Developments, the right to be associated with the Developments, the right to
    restrain or claim damages for any distortion, mutilation or other
    modification of the Developments, and the right to restrain use or
    reproduction of the Developments in any context and in connection with any
    product, service, cause or institution.

5.   No Conflicting Obligations:

(a) The Employee acknowledges and represents to the Company that his performance
    of his obligations hereunder and as an Employee of the Company shall not
    breach any agreement or other obligation to keep confidential the
    proprietary information of any prior employer of the Employee or any other
    third party. The Employee further acknowledges and represents that the
    Employee is not bound by any agreement or obligation with any third party,
    which conflicts, with any of his obligations under this Agreement.

(b)  The Employee represents and agrees that he will not bring to the Company,
    and shall not use in the fulfilment of his obligations for the Company, any
    Employee's Inventions (as defined below), any trade secrets, confidential
    information and other proprietary information of any prior employer of the
    Employee or any other third party. "Employee's Inventions" as used herein
    shall mean any work or invention created by the Employee alone or jointly
    with others, prior to, or outside of, his engagement by the Company. To the
    extent that any Employee's Inventions are incorporated into the Confidential
    Information of the Company by the Employee, Employee hereby grants to the
    Company a perpetual, irrevocable, world-wide, royalty-free licence to use
    such Employee's Inventions for any and all purposes in the Company's
    discretion. The Employee represents and agrees that in his work creating
    Developments the Employee will not knowingly infringe the intellectual
    property rights, including copyright, of any third party.

(c)  The Employee acknowledges and agrees that, in the event that the Employee
    should become aware of any potentially conflicting obligation, immediate
    notice shall be given to the Corporation of the existence, and to the extent
    known, nature of such conflict. The Employee also agrees that no further
    action will be taken until the written consent of the Company to proceed has
    been obtained.
<PAGE>

                                       4

                                 SCHEDULE "C"

                   CUSTOMARY DUTIES OF THE PRESIDENT AND CEO
                   -----------------------------------------

KEY ROLE:
---------

The President, in general, shall be responsible for:

 .  Developing and implementing the Company's strategic and operational plans to
   achieve the corporate vision and business and financial results embodied
   therein and as developed through the President and the Board of Directors

 .  Overseeing the operation of the Corporation

 .  Developing the Company's personnel

 .  Allocating resources and ensuring control

 .  Working with the Board of Directors to develop policy and maintain oversight

MAJOR RESPONSIBILITIES:
-----------------------

More specifically, the President:

1. Has total responsibility for all activities of the Corporation in accordance
   with policies, goals and objectives approved by the Board of Directors

2. Stays abreast of relevant events and trends in the Corporation's industry and
   evaluates their implications for the Corporation

3. Develops and recommends to the Board of Directors a long-term strategy and
   vision that lead to the creation of shareholder value

4. Develops and recommends to the Board annual business plans and expenditure
   budgets that support the Company's strategies; is accountable to the Board
   for the achievement of the financial and operating goals approved by the
   Board

5. Ensures that the Corporation has in place an appropriate process for
   monitoring the competitiveness of its products and anticipating changes in
   its competitive environment

6. Provides effective leadership and ensures that the day-to-day business
   affairs are appropriately managed

7. Ensures that an open and positive climate exists for the relationship between
   the Corporation, its shareholders and employees

8. Provides effective external representation for the Corporation

9. Ensures that the Corporation has in place an appropriate process for
   monitoring its competitiveness and anticipating changes in its competitive
   environment

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