Document:

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                                                                  EXHIBIT 10.3

                                                       (Massachusetts Employees)

                             EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT ("Agreement"), is made and entered into to
be effective as of December 1, 1999, by and between Lifef/x Networks, Inc.  (the
"Company"), a Delaware corporation doing business in Massachusetts, and Lucille
S.  Salhany ("Executive"), an individual residing in Dover, Massachusetts.

          The parties hereby agree as follows:

     1.   Employment; Term.
          ----------------

          (a)  The Company hereby employs Executive, and Executive hereby
accepts employment with the Company, upon the terms and conditions contained in
this Agreement. The term of Executive's employment hereunder (the "Employment
Period") shall commence on December 1, 1999 (the "Effective Date") and shall
continue for a period of two (2) years from and after the Effective Date, unless
sooner terminated as hereinafter provided.

          (b)  The Employment Period may be extended for two (2) successive one
year periods by mutual written agreement of the parties hereto. If either party
intends not to renew this Agreement upon the expiration of the Employment Period
then in effect, such party shall give the other party notice of such intention
not less than thirty (30) days prior to the expiration of such Employment
Period. Failure to provide notice of such intention shall not constitute either
a renewal of this Agreement or an extension of the Employment Period.

     2.   Duties.
          ------

          (a)  During the Employment Period, Executive shall serve as the Chief
Executive Officer and Co-President of the Company. Executive shall report
directly to the Board of Directors of the Company. Executive shall faithfully
perform for the Company the duties of Executive's office which shall include
such duties of an executive, technical, managerial or administrative nature as
may be specified and designated from time to time by the Board of Directors of
the Company. Subject to Section 2(b) below, Executive shall devote substantially
all of Executive's business time and effort to the performance of Executive's
duties for the Company hereunder.

          (b)  Notwithstanding anything to the contrary contained in Section
2(a) above, and subject to the provisions of Sections 9 and 14(a) and 14(b) and
other applicable provisions hereof, Executive shall be permitted to engage as an
officer, director, stockholder, employee and as a consultant in the management
of J H Media, Inc., and in connection with Executive's other personal
investments and business affairs, as further described in Section 14(b) hereof,
provided that such activities do not, individually or in the aggregate,
materially interfere or conflict with Executive's duties and responsibilities to
the Company, as reasonably determined by the Chairman of the Board or the Board
of Directors of the Company.
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     3.   Compensation.  Commencing on December 1, 1999, the Company shall pay
          ------------
to Executive a salary at an annual rate of $400,000. The salary payable pursuant
to this Section 3 (the "Base Salary") shall be payable in accordance with the
Company's payroll practices, as in effect from time to time. In addition to
Executive's Base Salary, Executive shall be entitled to annual consideration for
a bonus based on Executive's and the Company's performance, such bonus, if any,
to be as determined by the Compensation Committee as a subcommittee of the Board
of Directors, in its sole discretion.

     4.   Stock Option Grant.  Following the execution of this Agreement and
          ------------------
subject to the approval of the Board of Directors of the Company's parent
company, Lifef/x, Inc. ("Parent"), the Company will cause Parent to grant
Executive an option (the "Option") to purchase 1,952,459 shares of Parent's
Common Stock, subject to the terms and conditions of Parent's stock option plan
and agreements currently under development by Parent. Twenty percent (20%) of
the Option will vest on the Effective Date and the balance will vest in equal
quarterly installments over a period of two (2) years until fully vested. The
Option exercise price shall be $1.50 per share. The unvested balance of stock
options shall vest immediately in the event of the Executive's death or in the
event of her Permanent Disability, as defined herein, or in the event her
employment hereunder is terminated with the effect of the Company being
obligated to pay the Severance Compensation described in Section 7(c) hereof.

     5.   Expenses; Benefits.
          ------------------

          (a)  During the Employment Period, the Company agrees to reimburse
Executive, in accordance with the Company's policies as in effect and as
modified from time to time, for all reasonable and ordinary and necessary
business expenses paid or incurred by Executive in connection with the
performance of Executive's duties for the Company hereunder.

          (b)  During the Employment Period, Executive shall be entitled to
accrue vacation at a rate of 1.25 days per month for up to three weeks (i.e.,
fifteen days) of vacation annually, which vacation shall accrue at a rate of
1.25 days per month; provided that the maximum vacation accrual that Executive
may have at any time shall be fifteen (15) days. Once the Executive has accrued
the full fifteen (15) days vacation, all vacation accruals shall cease and shall
not resume unless and until Executive uses enough vacation time to fall below
the maximum accrual, at which point Executive shall start accruing vacation
again from that date forward until the maximum is reached again.

          (c)  During the Employment Period, Executive shall be entitled to
participate in and enjoy the benefits of any health, life, or disability
insurance, and of any retirement, pension, or profit-sharing plans, or other
similar plan or plans which may be instituted by the Company for the benefit of
its senior executive staff employees generally, upon such terms as may be
therein provided from time to time, and as modified or terminated from time to
time. During the initial six month period of this Agreement, the Executive shall
be reimbursed for her reasonable expenses incurred for such fringe benefit
purposes until such time as the Company has established its own plans and
policies for such purpose. As each such plan or policy is established by the
Company in its sole discretion, this reimbursement obligation shall terminate
and be of no further legal force or

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effect. The failure of the Executive to satisfy any eligibility requirements of
such plans or policies, waiting periods, or other requirements shall not
increase the maximum reimbursement obligation of the Company hereunder.

          (d)  During the Employment Period, the Company agrees to reimburse the
Executive, in accordance with the Company's policies as in effect from time to
time, the amount of $500 per month for automobile costs and expenses incurred by
Executive in the course of the performance of her duties hereunder.

     6.   Termination.  Executive's employment hereunder may be terminated prior
          -----------
to the expiration of the Employment Period only as follows:

          (a)  Automatically in the event of the death of Executive;

          (b)  At the option of the Company, by written notice to Executive or
Executive's personal representative in the event of the Permanent Disability (as
defined below) of Executive. As used herein, and subject to applicable law, the
term "Permanent Disability" shall mean a physical or mental incapacity or
disability which renders Executive unable to perform the essential functions of
her position, as determined by the Company, for a period of not less than one
hundred twenty (120) days in any calendar year. In the event that the Executive
resumes the performance of substantially all of her duties hereunder before the
termination of her employment under this subparagraph becomes effective, the
notice of termination shall automatically be deemed to have been revoked. No
compensation or benefits will be paid or provided to the Executive under this
Agreement on account of termination for Permanent Disability for periods
following the date when such a termination of employment is effective. The
Executive's rights under the benefit plans of the Company shall be determined
under the provisions of those plans. At the request of the Company, Executive
will submit to a medical examination by a physician acceptable to both parties
for the purpose of permitting the Company to determine whether Executive is
unable to perform the essential functions of her position;

          (c)  At the option of the Company, by written notice to Executive upon
the occurrence of any one or more of the following events:

               (i)   any action by Executive constituting breach of fiduciary
duty, fraud, embezzlement or theft in the course of Executive's employment
hereunder;

               (ii)  any conviction of or guilty plea or plea of nolo contendere
by Executive involving a felony or misdemeanor involving moral turpitude, and
which offense results in material harm to the Company, as determined by the
Board of Directors of the Company in its sole and reasonable discretion;

               (iii) gross neglect or willful refusal by Executive to perform
Executive's duties hereunder for a period of ten (10) days following notice
thereof by the Company;

               (iv)  material failure or refusal by Executive to comply with any
valid and legal directive of the Board of Directors of the Company; or

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               (v)   a breach by Executive of any obligation under this
Agreement if the Company determines in its sole discretion that such breach is
not curable or, if curable, is not cured within thirty (30) days after written
notice thereof by the Company to Executive.

          (d)  At the option of Executive, by written notice to the Company at
any time:

               (i)   within one hundred twenty (120) days after the occurrence
of a material breach of any material obligation under this Agreement by the
Company if such breach is not curable or, if curable, is not cured within forty-
five (45) days after written notice thereof by Executive to the Company; or

               (ii)  within fifteen (15) days if the Company shall have failed
to pay Executive the Base Salary on its due date in accordance with Section 3
and such failure shall not have been cured within fifteen (15) days of such
failure; or

               (iii) subject to the terms and conditions of Section 4 hereof, as
the result of the Company's material failure to issue its grant of the stock
options agreed to herein; or

               (iv)  in the event the Executive is requested by the Company to
change the location of her regular place of employment by the Company to a
location more than forty miles distant from the City of Cambridge,
Massachusetts; or

               (v)   in the event the Company initiates legal proceedings
pursuant to this Agreement seeking enforcement against the Executive of the
terms and conditions of Sections 8 or 9 hereof; or

               (vi)  in the event Good Reason exists, such Good Reason to
include only the following two listed circumstances, and in such event the
Executive's employment with the Company may be regarded as having been
constructively terminated by the Company, and the Executive may therefore
terminate her employment for Good Reason and as a result thereof, and subject to
the terms and conditions of this Agreement, thereupon become entitled to only
the benefit of Subsection 9(e)(iv), if, before the end of her Employment Period,
one or more of the following events shall occur (unless such event(s) applies
generally to all senior management of the Company or unless the Executive shall
have become Permanently Disabled):

                     (1)   without the Executive's written consent, the
assignment to the Executive of any duties or the reduction of the Executive's
duties, either of which results in a significant diminution in the Executive's
position or responsibilities with the Company in effect immediately prior to
such assignment, and which is reasonably expected to continue for a period of at
least one month, or the removal of the Executive from her position and her
active and ongoing responsibilities and duties pursuant to this Agreement; or

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                     (2)   a material reduction by the Company in the kind or
level of employee benefits to which the Executive is entitled immediately prior
to such reduction with the result that the Executive's overall employee benefits
package is significantly reduced.

          (e)  The Company may terminate this Agreement at any time and for any
reason or for no reason, subject to the Company's obligations under Section
7(c).

     7.   Effect of Termination.
          ---------------------

          (a)  In the event of the Company's termination of Executive's
employment hereunder prior to the expiration of the Employment Period for any
reason, the Company shall have no liability or obligation to Executive other
than as specifically set forth in this Section 7.

          (b)  Upon the termination by the Company of Executive's employment
hereunder pursuant to the provisions of Section 6(a), 6(b), or 6(c) hereof, or
the termination by Executive of Executive's employment hereunder for any reason
other than as set forth in Section 6(d), Executive (or Executive's heirs or
legal representatives) shall be entitled to receive only such portion (if any)
of the Base Salary as may theretofore have accrued but be unpaid on the date of
such termination, plus any accrued and unpaid vacation pay which may be owing
through the date of termination, plus in the event of the Executive's Permanent
Disability hereunder, the Base Salary amount payable pursuant to Section 3
hereof for the period of time until the Company's disability insurance on the
Executive becomes payable, such maximum period of time in any event not to
exceed a maximum period of twelve months from the date of such disability.

          (c)  Upon the termination of Executive's employment hereunder either:
(i) by the Company for any reason other than pursuant to Sections 6(a), 6(b) or
6(c), including, without limitation, pursuant to Section 6(e), or (ii) by
Executive pursuant to Section 6(d), then Executive shall be entitled to receive
such portion of the Base Salary as may theretofore have accrued but be unpaid on
the date of such termination and any accrued and unpaid vacation pay which may
be owing through the date of termination, and the Company shall continue to pay
to Executive, as severance compensation (the "Severance Compensation"),
Executive's full Base Salary as provided in Section 3 above for the unexpired
period of the term of the Employment Period set forth in Section 1(a) hereof.
At the option of the Company, the Severance Compensation shall be payable (i) at
the same time as such compensation would have been paid to Executive had
Executive not been so terminated, or (ii) in one lump sum within thirty (30)
days of the termination of Executive's employment.

          (d)  Upon the termination of Executive's employment hereunder for any
reason, Executive shall immediately surrender to the Company all Company
property in the possession, custody or control of Executive, including but not
limited to any computer hardware, software, computer disks and/or data storage
devices, as well as all notes, data, sketches, drawings, manuals, documents,
records, data bases, programs, blueprints, memoranda, specifications, customer
lists, financial reports, equipment and all other physical forms of expression
incorporating or containing any Confidential Information (as

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defined in Section 8 hereof), it being distinctly understood that all such
writings, physical forms of expression and other things are exclusive property
of the Company.

     8.   Confidential Information and Inventions.

          (a)  Executive recognizes and acknowledges that during the course of
Executive's employment with the Company, Executive shall have access to
Confidential Information. Subject to the terms and conditions of Section 2(b)
and Section 14 hereof, "Confidential Information" means all information or
material not publicly known about the Company, including, without limitation,
any such information which relates to any of its products, services or any phase
of its operations, business or financial affairs. Confidential Information
includes, but is not limited to, the following types of information and other
information of a similar nature (whether or not reduced to writing): trade
secrets, inventions, drawings, file data, documentation, diagrams,
specifications, know-how, processes, formulas, models, flow charts, software in
various stages of development, source codes, object codes, research and
development procedures, test results, marketing techniques and materials,
marketing and development plans, price lists, pricing policies, business plans,
information relating to customers and/or suppliers' identities, characteristics
and agreements, financial information and projections and employee files.
Confidential Information also includes any information described above which the
Company obtains from another party and which the Company treats and/or has an
obligation to treat as confidential or designates as Confidential Information,
whether or not owned or developed by the Company. Confidential Information shall
not include any information which is or becomes (i) generally available to the
public other than as a result of disclosure in violation of any agreement with
the Company or (ii) generally known in the industry in which the Company is or
may become involved other than as a result of disclosure in violation of any
agreement with the Company. (The term "Company," as used in this Section 8,
means not only Lifef/x Networks, Inc., but also any company, partnership or
entity which, directly or indirectly, controls, is controlled by or is under
common control with Lifef/x Networks, Inc.)

          (b)  Subject to the terms and conditions of Section 2(b) and Section
14 hereof, both during the Employment Period and at all times thereafter, all
Confidential Information which Executive may now possess, may obtain during or
after the Employment Period, or may create prior to the end of the Employment
Period will be held confidential by Executive, and Executive will not (nor will
Executive assist any other person to do so), directly or indirectly, (i) reveal,
report, publish or disclose such Confidential Information to any person, firm,
corporation, association or other entity for any reason or purpose whatsoever
(other than in the course of carrying out Executive's duties hereunder or as
expressly authorized by the Company), (ii) render any services to any person,
firm, corporation, association or other entity to whom any such Confidential
Information, in whole or in part, has been disclosed or is threatened to be
disclosed by or at the instance of Executive, or (iii) use such Confidential
Information except for the benefit of the Company and in the course of
Executive's employment with the Company; provided, however that the foregoing
will not apply to the extent Executive is required to disclose any Confidential
Information by applicable law or legal process so long as Executive promptly
notifies the Company of such pending disclosure and consults with the

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Company prior to such disclosure concerning the advisability of seeking a
protective order or other means of preserving the confidentiality of the
Confidential Information.

          (c)  Subject to the terms and conditions of Section 2(b) and Section
14 hereof, any inventions (as defined below) in whole or in part conceived, made
or reduced to practice by Executive (either solely or in conjunction with
others) during or after the Employment Period which are made through the use of
any of the Confidential Information or any of the Company's equipment,
facilities, supplies, trade secrets or time, or which relate to the Company's
business or the Company's actual or demonstrably anticipated research and
development, or which result from any work performed by Executive for the
Company will belong exclusively to the Company and will be deemed part of the
Confidential Information for purposes of this Agreement, whether or not fixed in
a tangible medium of expression. The term "Inventions," as used herein, means
any ideas, designs, concepts, techniques, inventions and discoveries, whether or
not patentable or protectable by copyright and whether or not reduced to
practice, including, but not limited to, devices, processes, drawings, works of
authorship, computer programs, software, source codes, object codes, interfaces
and networks (and all components of the foregoing), methods and formulas
together with any improvements thereon or thereto, derivative works therefrom
and know-how related thereto.

               (i)   Without limiting the foregoing, any such Inventions will.
be deemed to be "works made for hire" and the Company will be deemed to be the
owner thereof, provided that in the event and to the extent such works are
determined not to constitute "works made for hire" as a matter of law, Executive
hereby irrevocably assigns and transfers to the Company all right, title and
interest in and to any such Inventions, including but not limited to all related
patents, copyrights and mask works and all applications therefor and filings and
notification with respect thereto.

               (ii)  Executive acknowledges and agrees that she will keep and
maintain adequate and current written records (in the form of notes, sketches,
drawings or such other form(s) as may be specified by the Company) of all
Inventions made by Executive during the Employment Period or thereafter
(including but not limited to information relating to all Inventions which
belong exclusively to the Company pursuant to the provisions of this Section
8(c)), which records will be available at all times to the Company and will
remain the sole property of the Company. In the event that (A) any Invention is
made, conceived of or reduced to practice by Executive, either solely or in
conjunction with others, during the Employment Period, or (B) any Invention is
made, conceived of or reduced to practice by Executive after the Employment
Period which belongs exclusively to the Company pursuant to the provisions of
this Section 8(c), Executive will promptly give notice and fully disclose in
writing such Invention to the Chairman of the Board and the Board of Directors
of the Company.

               (iii) Executive will assist the Company (at the Company's
expense), either during or subsequent to the Employment Period, to obtain and
enforce for the Company's benefit, patents, copyrights, and mask work protection
in any country for any and all Inventions made by Executive, in whole or in
part, the rights to which belong to or have been assigned to the Company
pursuant to the provisions of Section 8(c) hereof.

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Executive will be compensated for such assistance at a reasonable rate not to
exceed $800 per day for time accounted for and actually employed in such
assistance. Executive agrees to execute all applications, assignments,
instruments and papers and perform all acts as the Company or its counsel may
deem necessary or desirable to obtain any patents, copyrights or mask work
protection in such Inventions and otherwise to protect the interests of the
Company therein. In the event the Company is unable to secure Executive's
signature on any document necessary to apply for, prosecute, obtain, or enforce
any patent, copyright, or other right or protection relating to any Invention,
whether due to mental or physical incapacity or any other cause, Executive
hereby irrevocably designates and appoints the Company and each of its duly
authorized officers and agents as Executive's agents and attorney-in- fact, to
act for and in Executive's behalf and stead to execute and file any such
document and to do all other lawfully permitted acts to further the prosecution,
issuance, and enforcement of patents, copyrights, or other right or protections
with the same force and effect as if executed and delivered by Executive.

          (d)  Subject to the terms and conditions of Section 2(b) and Section
14 hereof, all memoranda, notes, lists, records and other documents (and all
copies thereof) constituting Confidential Information (including information
relating to all Inventions which belong exclusively to the Company pursuant to
the provisions of Section 8(c) above) made or compiled by Executive or made
available to Executive during or after the Employment Period shall be the
Company's property, shall be kept confidential in accordance with the provisions
of this, Section 8 and shall be delivered to the Company at any time on request
and in any event upon the termination of Executive's employment with the Company
for any reason.

     9.   Covenant Against Competition.  Executive covenants and agrees that:
          ----------------------------

          (a)  During the Non-Compete Period (as hereinafter defined), Executive
shall not, directly or indirectly, in any Geographic Area (as hereinafter
defined): (i) engage for Executive's own account in any business competitive
with the Company Business (as hereinafter defined); (ii) render any services in
any capacity to any person or entity (other than the Company or its Affiliates)
engaged in any business competitive with the Company Business; or (iii) acquire
an interest in any person or entity engaged in any business competitive with the
Company Business (other than the Company) as a partner, shareholder, director,
officer, employee, principal, manager, member, agent, trustee, consultant or in
any other relationship or capacity; provided, however, Executive may own,
                                    --------  -------
directly or indirectly, solely as a passive investment, securities of any such
entity which are traded on any national securities exchange if Executive (A) is
not a controlling person of, or a member of a group which controls, such entity,
and (B) does not, directly or indirectly, own 1% or more of any class of
securities of such entity.

          (b)  During the Non-Compete Period, Executive shall not, without the
prior written consent of the Company, directly or indirectly, on behalf of
himself or any other person or entity solicit or encourage any employee of the
Company or any of its Affiliates to leave the employment of the Company or any
of its Affiliates, or hire any employee who has left the employment of the
Company or any of its Affiliates within one

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year of the termination of such employee's employment with the Company or any of
its Affiliates.

          (c)  During any portion of the Non-Compete Period during which
Executive is not employed by the Company, Executive shall not, in any Geographic
Area, and in connection with any business competitive with the Company's
Business (as hereinafter defined), directly or indirectly, (i) solicit or
encourage any customer or client of the Company to engage the services of
Executive or any person or entity (other than the Company) in which Executive is
a partner, shareholder, director, officer, employee, principal, member, manager,
agent, trustee, consultant or engaged in any other relationship or capacity, or
(ii) accept orders or business from, or agree to provide services to, any
customer or client of the Company, on behalf of Executive or any person or
entity (other than the Company) in which Executive is a partner, shareholder,
director, officer, employee, principal, member, manager, agent, trustee,
consultant or engaged in any other relationship or capacity.

          (d)  If any provision of Sections 8 or 9 is held to be unenforceable
because of the scope, duration, area of its applicability or otherwise, it is
the intention of the parties that the court making such determination shall
modify such scope, duration or area, or all of them so that the provision shall
be enforceable to the greatest extent permitted under the law, and that such
provision shall then be applicable in such modified form.

          (e)  As used in this Agreement:

               (i)   "Affiliate" shall mean any entity directly or indirectly
                      ---------
controlling, controlled by, or under common control with the Company and any
entity in which the Company is a general partner, member, manager or holder of
greater than a 10% common equity, partnership or membership interest.

               (ii)  "Company Business" shall mean the business of the Company
                      ----------------
as so defined at the time of the signing of this Agreement, or at the time of a
violation of this Section 9 is alleged to occur or, if such alleged occurrence
is after Executive's employment is terminated, the business of the Company at
the time such employment terminates.

               (iii) "Geographic Area" shall mean the world.
                      ---------------

               (iv)  "Non-Compete Period" shall mean the period during which
                      ------------------
Executive is employed by the Company and for an additional period of two years
following the termination of Executive's employment with the Company. Such two
year period following Executive's termination of employment shall be reduced to
a one year period in the event the Executive's termination of employment by the
Company occurs for no specific reason or in the event Executive terminates her
employment with the Company for Good Reason, as defined in Section 6(d)(vi)
hereof.

               (v)   "Control" with respect to any person, shall mean
                      -------
possession, direct or indirect, of the power to direct or cause the direction of
the management and

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policies of such person, whether through the ownership of voting securities or a
partnership interest, by contract or otherwise, and for example, including
election of a majority of a board of directors of persons who simultaneously
serve on another affiliated board of directors.

     10.  Enforcement by Injunction.  Executive acknowledges and agrees that the
          -------------------------
Company will be irreparably damaged if Executive fails to comply with the
provisions of Sections 8 or 9 hereof, subject to the applicable terms and
conditions of this Agreement, including Section 2(b) and Section 14 hereof.
Accordingly, in the event of such a failure to comply with the terms and
conditions of Sections 8 or 9 hereof, the Company shall be entitled to (i) an
injunction or any other appropriate decree of specific performance (without the
necessity of posting any bond or other security in connection therewith) in case
of any breach or threatened breach of Executive's covenants under Sections 8 or
9, (ii) damages in an amount equal to all compensation, profits, monies,
accruals, increments or other benefits derived or received by Executive (or any
associated party deriving such benefits including but not limited to any future
employer of Executive) as a result of any such breach of Executive's covenants
under Sections 8 or 9, and (iii) indemnification against any other losses,
damages, costs and expenses, including actual attorneys' fees and court costs,
incurred by the Company in obtaining any damages and/or injunctive relief Such
remedies shall not be exclusive and shall be in addition to any other remedy, at
law or in equity, which the Company may have for any breach or threatened breach
of Sections 8 or 9 by Executive.

     11.  Notices.  Any and all notices or other communications required or
          -------
permitted to be given under any of the provisions of this Agreement shall be in
writing and shall be deemed to have been duly given when personally delivered or
mailed by first class registered mail, return receipt requested, or by
commercial courier or delivery service, or by facsimile, addressed to the
parties at the addresses set forth below their signatures hereto (or at such
other address as any party may specify by notice to all other parties given as
aforesaid).

     12.  Indemnification.  The Company shall indemnify Executive and hold
          ---------------
Executive harmless from and against any and all losses, claims, damages or
liabilities (including reasonable attorneys' fees), and all actions, claims or
proceedings in respect thereof, brought against Executive by any third party by
reason of the fact that Executive is or was a director, officer or employee of
the Company or any other business or entity for which Executive so serves at the
written request of the Company, if Executive acted, in good faith, for a purpose
which Executive reasonably believed to be in, or (in the case of service for
such other business or entity) not opposed to, the best interests of the Company
and, in criminal proceedings, in addition, had no reasonable cause to believe
that Executive's conduct was unlawful; provided that the Company shall not be
liable under this Section 12 to the extent that any loss, claim, damage,
liability or expense: is found by a court of competent jurisdiction to arise (i)
from the gross negligence or willful misconduct of Executive or (ii) out of or
relate to Executive's acts or omissions, negligent or otherwise, relating to any
of the outside business and investment activities of Executive described in
Section 2(b) above.  In connection with the indemnity granted by the Company,
Executive agrees (i) to notify the Company promptly of the assertion against
Executive of any claims

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or the commencement of any action or proceeding for which Executive may seek
indemnity under this Agreement (provided that the failure to so notify the
Company shall not affect the Company's obligations hereunder, except to the
extent the Company is materially prejudiced by such failure); and (ii)
reasonably to cooperate with the Company and counsel selected by the Company to
represent Executive (which counsel shall be reasonably acceptable to Executive).
Expenses (including reasonable attorneys' fees and disbursements) Executive
incurs in defending any action, suit or proceeding shall be paid by the Company
from time to time promptly upon Executive's written request in advance of the
final disposition of the action, suit or proceeding upon presentation of
vouchers or other evidence of the incurrence of the expense and upon receipt of
an undertaking in writing by Executive to repay such amount if it shall
ultimately be determined that Executive is not entitled to be indemnified
thereunder.

     13.  Arbitration.  Any dispute or controversy arising under this Agreement
          -----------
or concerning Executive's employment with the Company (including, without
limitation, any controversy as to the arbitrability of any dispute) including
but not limited to any claims arising out of Title VII of the Civil Rights Act
of 1964, the Age Discrimination in Employment Act, the Americans with
Disabilities Act, and/or Massachusetts General Laws Chapter 151B, shall be
settled exclusively by arbitration to be held in Boston, Massachusetts, before a
single arbitrator in accordance with the rules of the American Arbitration
Association then in effect relating to the arbitration of employment disputes,
provided, however, that any claims arising out of Sections 8, 9 and/or 10 of
this Agreement shall be resolved through the courts. Judgment may be entered on
the arbitrator's award in any court having jurisdiction, and the parties consent
to the jurisdiction of the Massachusetts courts for that purpose.

     14.  Exclusions from Sections 8 and 9: Effect on Sections 2(a) and 2(b).
          ------------------------------------------------------------------

          (a)  Notwithstanding anything contained in Section 8 or Section 9
hereof to the contrary, the activities of Executive in connection with her (1)
investment activities as of the date this Agreement is signed or (2) activities
as are not included within the scope of the Lifef/x internet technology related
business plan of this Company, as such business plan is adopted in writing by
the Board of Directors of this Company either before or within ninety (90) days
after the date this Agreement is signed, and as it may be amended annually
thereafter, shall to such extent not be deemed to be competitive with the
Company's Business. In the event the Board of Directors of this Company fails
for any reason or for no reason to adopt such a business plan, such Lifef/x
business plan shall be deemed to be that plan set forth and described in the
Company's Private Placement Memorandum dated October 29, 1999, as previously
amended. In the event the Board of Directors fails to amend the business plan
for any reason or for no reason at the end of the first calendar year, the
business plan shall be that plan previously adopted pursuant to this Agreement's
terms and conditions.

          (b)  Subject to the terms and conditions of Sections 2(a) and 2(b)
hereof, and Section 14(a) hereof, and other applicable provisions hereof, the
Executive's personal activities and personal services in connection with J H
Media, Inc., and her personal unrelated investment and business affairs shall
not be deemed to be competitive with the

                                       11
<PAGE>

Company's Business in and of themselves, and such limited permitted activities
shall not by themselves alone be deemed by the Company to be a failure by the
Executive to comply with or to constitute the breach by the Executive of this
Agreement or in particular the provisions of Section 2 hereof so long as such
activities by Executive do not interfere with Executive's availability to the
Company hereunder, and her performance of her full-time duties hereunder.

     15.  Miscellaneous.
          -------------

          (a)  This writing constitutes the entire agreement of the parties with
respect to the subject matter hereof and may not be modified, amended or
terminated except by a written agreement signed by all of the parties hereto.

          (b)  This Agreement shall not be assignable by Executive, but it shall
be binding upon, and shall inure to the benefit of, Executive's heirs,
executors, administrators and legal representatives. This Agreement may be
assigned by the Company to any Affiliate of the Company or any successor to all
or substantially all of the Company's Lifef/x technology and shall be binding
upon and inure to the benefit of the Company and its successors and assigns.

          (c)  No waiver of any breach or default hereunder shall be considered
valid unless in writing, and no such waiver shall be deemed a waiver of any
subsequent breach or default of the same or similar nature.

          (d)  If any provision of this Agreement shall be held invalid or
unenforceable, such invalidity or unenforceability shall attach only to such
provision and shall not in any manner affect or render invalid or unenforceable
any other severable provision of this Agreement, and this Agreement shall be
carried out as if any such invalid or unenforceable provision were not contained
herein, unless the invalidity or unenforceability of such provision
substantially impairs the benefits of the remaining portions of this Agreement.

          (e)  The section headings contained herein are for the purposes of
convenience only and are not intended to define or limit the contents of said
sections.

          (f)  This Agreement may be executed in two or  more counterparts, all
of which taken together shall be deemed one original.

          (g)  This Agreement shall be deemed to be a contract under the laws of
the Commonwealth of Massachusetts and for all purposes shall be construed and
enforced in accordance with the internal laws of said Commonwealth.

          (h)  This Agreement shall not confer any rights or remedies upon any
person or entity other than the parties hereto and their respective successors
and permitted assigns.

          (i)  The Executive acknowledges that she has consulted with counsel
and is fully aware of her rights and obligations under this Agreement.

                                       12
<PAGE>

          (j)  The Executive represents and warrants that her employment by the
Company as described herein shall not conflict with and will not be constrained
by any prior employment or consulting agreement or other business or investment
relationship, and that she has previously satisfied all requirements of
applicable law to be employed by the Company.

          (k)  During her Employment Period, the Company agrees to use its
reasonable best efforts to obtain and to pay for Directors and Officers
Liability insurance from a solvent insurer in amounts and on terms which the
Company in its sole discretion may establish from time to time, and to provide
evidence of such insurance to the Executive once in each calendar year if
requested in writing by the Executive to do so.

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

/s/ Lucille Salhany                     Lifef/x Networks, Inc.
_______________________________
Lucille Salhany                         By: /s/ Michael S. Rosenblatt
36 Strawberry Hill Road                    ________________________________
Dover, Massachusetts 02030              Name: Michael S. Rosenblatt
                                             ______________________________
                                        Title: Chairman and Co-President
                                              _____________________________

                                        Name and Address:
                                        Michael S. Rosenblatt, Chairman and
                                        Co-President
                                        Lifef/x, Inc.
                                        c/o Cambridge Technology Partners
                                        8 Cambridge Center
                                        Cambridge, MA 02142

                                       13<PAGE>

                                                                 EXHIBIT 10.4

                              CONSULTING AGREEMENT

     This Consulting Agreement (this "Agreement") is made and entered into as of
January 4, 2000, by and between Lifef/x Networks, Inc., a Delaware corporation
(the "Company"), and Ian W. Hunter ("Consultant"), both the Company and the
Consultant being sometimes referred to herein as the "parties," with reference
to the following facts:

     A.  Consultant possesses special skills, knowledge and qualifications
beneficial to the business of the Company.

     B.  The parties hereto desire to enter into an agreement under which
Consultant will provide services to the Company.

     C.  The parties intend that Consultant shall be an independent contractor
with and to the Company under this Agreement and not an employee of the Company.

     NOW, THEREFORE, in consideration of the mutual agreements and covenants
contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

     1.  Engagement and Term. The Company hereby engages the services of
         -------------------
Consultant and Consultant accepts such engagement upon the terms and conditions
set forth herein for a term commencing on January 4, 2000 and terminating on the
first anniversary hereof (the "Term") unless such engagement is sooner
terminated as hereinafter provided. This Agreement may be extended for two (2)
additional one-year terms by mutual signed written agreement of the parties.

     2.  Duties. Consultant shall (a) provide consulting and engineering
         ------
services for the Company to design, build and implement all aspects of the
Company's "Lifef/x" products (as more fully described in the attached
description "Addendum "A"), (b) consult on all technical matters requested by
the Company, (c) assist in the search for one or more qualified candidates for
hiring consideration by the Company as directed by the Chief Executive Officer,
(d) search for qualified candidates who may be considered by the Company for
hire as employees or engagement as independent contractors and (e) perform such
other duties pertaining to the Company's business as the Company and Consultant
may reasonably agree from time to time, including, without limitation,
participating in demonstrations and presentations of the Company's "Lifef/x"
products to potential clients, investors and other parties. In addition to
Consultant's obligations hereunder, upon the Company's request, Consultant shall
prepare and deliver to the Company written reports describing in detail the
progress of the services performed under this Agreement.

     3.  Nature of Services. Consultant shall perform diligently and to the best
         ------------------
of its talents, skills and expertise, all of the services which Consultant is
required to perform under this Agreement and shall devote such time to the
performance of these duties on average one (1) business day per week for the
initial Term of this Agreement, plus such additional periods of time as
Consultant may reasonably determine to be necessary in order to accomplish the
assigned
<PAGE>

tasks. In the performance of services hereunder, Consultant shall hold the title
of Senior Scientific Consultant for such period of time as may be determined by
the Company in its sole and absolute discretion; provided, however, that
Consultant shall not have the power to bind the Company under any contract,
agreement or other arrangement with any third party. Consultant shall not
delegate the performance of any such services to any other person, firm or
corporation without the prior written consent of the Company, which consent the
Company may grant or withhold in its sole and absolute discretion. Subject to
the foregoing and the provisions of Section 7, Consultant shall have the right
to engage in any other gainful activities, ventures and businesses. Consultant's
services hereunder shall be performed at the Company's offices in the greater
Boston, Massachusetts area, unless the parties hereto from time to time mutually
agree otherwise. Notwithstanding the foregoing, Consultant hereby acknowledges
and agrees that Consultant shall be required, as part of the services to be
performed by Consultant hereunder, to travel to such locations in the United
States and Canada as the Company may direct from time to time, and to such
foreign locations as are mutually agreed to from time to time. All such travel
dates shall be mutually agreed to by the parties.

     The Company shall have the right, at any time and from time to time, to
hire any other person, firm or entity to provide all or any portion of the
services which Consultant has agreed to provide to the Company hereunder.
Whether or not the Company has hired any such other person, firm or entity, the
Company may, by notice to Consultant, in its sole and absolute discretion and
from time to time, cause Consultant to cease providing any one or more services
hereunder and/or withdraw and/or change any request for services theretofore
made by the Company to Consultant.

     4.  Compensation. For so long as Consultant is engaged by the Company, the
         ------------
Company shall pay to Consultant and Consultant shall accept as payment in full
for all services rendered by Consultant to the Company hereunder a consulting
fee (the "Consulting Fee") equal to One Hundred Fifty Thousand Dollars
($150,000) per annum, payable bi-weekly in arrears.

     5.  Reimbursement of Expenses. The Company shall reimburse Consultant for
         -------------------------
all out-of-pocket expenses authorized in advance by the Company's Board of
Directors or any Co-President of the Company and incurred by Consultant in the
performance of Consultant's duties hereunder; provided such expenses are
reasonably accounted for to the Company in a manner satisfactory to the Company.

     6.  Confidential Information and Inventions.
         ---------------------------------------
              (a)  Consultant recognizes and acknowledges that during the course
of Consultant's engagement by the Company, Consultant shall have access to
Confidential Information. "Confidential Information" means all information or
material not publicly known about the Company and which the Company treats or
designates as confidential, including, without limitation, any such information
which relates to any of its products, services or any phase of its operations,
business or financial affairs. Confidential Information includes, but is not
limited to, the following types of information and other information of a
similar nature (whether or not reduced to writing): trade secrets, inventions,
drawings, file data, documentation, diagrams, specifications, know-how,
processes, formulas, models, flow charts, software in various stages of
development, source codes, object codes, research and development

                                       2
<PAGE>

procedures, test results, marketing techniques and materials, marketing and
development plans, price lists, pricing policies, business plans, information
relating to customers and/or suppliers' identities, characteristics and
agreements, financial information and projections and employee files.
Confidential Information also includes any information described above which the
Company obtains from another party and which the Company treats and/or has an
obligation to treat as confidential or designates as Confidential Information,
whether or not owned or developed by the Company. Confidential Information shall
not include any information which is or becomes (i) generally available to the
public other than as a result of disclosure in violation of this agreement with
the Company or (ii) generally known in the industry in which the Company is or
may become involved other than as a result of disclosure in violation of this
agreement with the Company. (The term "Company," as used in this Section 6,
means not only Lifef/x Networks, Inc., but also any company, partnership or
entity which, directly or indirectly, controls, is controlled by or is under
common control with Lifef/x Networks, Inc. The term "Consultant", as used in
this Section 6, means not only Ian W. Hunter, but also all employees of Ian W.
Hunter.)

           (b)  Both during the term hereof and at all times thereafter, all
Confidential Information which Consultant may now possess, may obtain during or
after the term hereof, or may create prior to the end of the term hereof will be
held confidential by Consultant, and Consultant will not (nor will Consultant
assist any other person to do so), directly or indirectly, (i) reveal, report,
publish or disclose such Confidential Information to any person, firm,
corporation, association or other entity for any reason or purpose whatsoever
(other than in the course of carrying out Consultant's duties hereunder or as
expressly authorized by the Company), (ii) render any services to any person,
firm, corporation, association or other entity to whom any such Confidential
Information, in whole or in part, has been disclosed or is threatened to be
disclosed by or at the instance of Consultant, or (iii) use such Confidential
Information except for the benefit of the Company and in the course of
Consultant's engagement by the Company; provided, however that the foregoing
will not apply to the extent Consultant is required to disclose any Confidential
Information by applicable law or legal process so long as Consultant promptly
notifies the Company of such pending disclosure and consults with the Company
prior to such disclosure concerning the advisability of seeking a protective
order or other means of preserving the confidentiality of the Confidential
Information.

           (c)  Any Inventions (as defined below) in whole or in part conceived,
made or reduced to practice by Consultant (either solely or in conjunction with
others) (i) during or after the Term hereof, which are made through the use of
any of the Confidential Information or any of the Company's equipment,
facilities, supplies, trade secrets or (ii) during the Term hereof, which relate
to the Company's business or the Company's actual or demonstrably anticipated
research and development, or (iii) during or after the Term hereof, which result
from any work performed by Consultant for the Company, will belong exclusively
to the Company and will be deemed part of the Confidential Information for
purposes of this Agreement, whether or not fixed in a tangible medium of
expression. The term "Inventions," as used in this Section 6, means any ideas,
designs, concepts, techniques, inventions and discoveries, whether or not
patentable or protectable by copyright and whether or not reduced to practice,
including, but not limited to, devices, processes, drawings, works of
authorship, computer programs, software, source codes, object codes, interfaces
and networks (and all components of the foregoing),

                                       3
<PAGE>

methods and formulas together with any improvements thereon or thereto,
derivative works therefrom and know-how related thereto.

           (i)    Without limiting the foregoing, any such Inventions will be
deemed to be "works made for hire" and the Company will be deemed to be the
owner thereof, provided that in the event and to the extent such works are
determined not to constitute "works made for hire" as a matter of law,
Consultant hereby irrevocably assigns and transfers to the Company all right,
title and interest in and to any such Inventions, including but not limited to
all related patents, copyrights and mask works and all applications therefor and
filings and notification with respect thereto.

           (ii)   Consultant acknowledges that written records (in the form of
notes, sketches, drawings or such other form(s) as may be specified by the
Company) of all Inventions made by Consultant during the Term hereof or
thereafter which belong exclusively to the Company pursuant to the provisions of
this Section 6), which will be available at reasonable intervals on receipt from
the Company of notice or requests therefor to the Company at all times and will
remain the sole property of the Company. In the event that any Invention is
made, conceived of or reduced to practice by Consultant, either solely or in
conjunction with others, during the Term hereof, which belongs exclusively to
the Company pursuant to the provisions of this Section 6, Consultant will
promptly give notice and fully disclose in writing such Invention to the Co-
Presidents and the Board of Directors of the Company.

           (iii)  Consultant will assist the Company (at the Company's expense),
either during or subsequent to the term hereof, to obtain and enforce for the
Company's benefit, patents, copyrights, and mask work protection in any country
for any and all Inventions made by Consultant, in whole or in part, the rights
to which belong to or have been assigned to the Company pursuant to the
provisions of this Section 6. Consultant agrees to execute all applications,
assignments, instruments and papers and perform all acts as the Company or its
counsel may deem necessary or desirable to obtain any patents, copyrights or
mask work protection in such Inventions and otherwise to protect the interests
of the Company therein. In the event the Company is unable to secure
Consultant's signature on any document necessary to apply for, prosecute,
obtain, or enforce any patent, copyright, or other right or protection relating
to any Invention which is due to mental or physical incapacity, Consultant
hereby irrevocably designates and appoints the Company and each of its duly
authorized officers and agents as Consultant's agents and attorney-in-fact, to
act for and in Consultant's behalf and stead to execute and file any such
document and to do all other lawfully permitted acts to further the prosecution,
issuance, and enforcement of patents, copyrights, or other right or protections
with the same legal force and effect as if executed and delivered by Consultant.

       (d)  All memoranda, notes, lists, records and other documents (and all
copies thereof) constituting Confidential Information (including information
relating to all Inventions which belong exclusively to the Company pursuant to
the provisions of this Section 6) made or compiled by Consultant or made
available to Consultant during or after the Term hereof shall be the Company's
property, shall be kept confidential in accordance with the provisions of this
Section 6 and shall be delivered to the Company at any time on request and in
any event upon the termination of Consultant's engagement by the Company for any
reason.

                                       4
<PAGE>

     7.  Competition and Solicitation of Business. During the Term of this
         ----------------------------------------
agreement and for an additional period of one year thereafter (collectively, the
"Restricted Period"), Consultant shall not (a) engage or own any interest in any
activities, ventures or businesses which directly or indirectly conflict or
compete with, or are substantially similar to, the activities, ventures and
businesses of the Company to the extent that such activities, ventures, and
businesses are included within the Business Plan of the Company as of the date
of execution of this Agreement, and as the parties hereto may subsequently
reasonably agree as to future amendments in the scope of such Business Plan in a
signed written instrument; (b) solicit or assist any other person or entity to
solicit any business (other than for the Company) from any present or past
customer of the Company; or (c) request or advise any present or future
customer, supplier or vendor of the Company to withdraw, curtail or cancel its
business dealings with the Company; or (d) commit any other act or assist others
to commit any other act which is intended to injure the business of the Company.
Notwithstanding anything to the contrary contained herein, Consultant may own
directly or indirectly, securities of any entity which are traded on any
national securities exchange if Consultant is not a controlling person of, or
member of a group which controls, such entity, and he does not directly or
indirectly own 5% or more of any class of securities issued by such entity.

     8.  Solicitation of Employees. Consultant shall not during the Restricted
         -------------------------
Period, without the Company's prior written consent, directly or indirectly, (a)
solicit or encourage any employee of the Company to leave the employ of the
Company or (b) hire any employee or former employee of the Company if that
employee has left the employ of the Company within one year prior thereto, with
the exception of Serge Lafontaine, a current employee of the Company who may
continue his Post Doctoral fellowship under the direction of Consultant.
Notwithstanding the above, Serge Lafontaine's fellowship may in no way compete,
interfere or diminish Lafontaine's responsibilities to the Company and
Lafontaine's employment agreement with the Company overrides and controls any
understanding in such regard contained in this Agreement.

     9.  Solicitation of Consultants. Consultant shall not during the Restricted
         ---------------------------
Period, without the Company's prior written consent, directly or indirectly, (a)
solicit or encourage to cease work with the Company any consultant then under
contract with the Company or (b) hire any consultant or former consultant of the
Company if that consultant has ceased to be engaged by the Company within one
year prior thereto.

     10.  Use of Each Party's Name; Use of Facilities. The Company and the
          -------------------------------------------
Consultant may make reasonable written use of or reference to the other party's
name in any marketing, public relations, advertising, display and for other
business purposes without the prior written consent of the other party hereto.
Consultant shall not make any use of the Company's facilities for any activity
unrelated to the business purposes and interests of the Company under this
Agreement without the Company's prior written consent, which consent may be
granted or withheld in the Company's sole and absolute discretion.

     11.  Survival. Consultant and Company agree that the obligations, covenants
          --------
and agreements of Consultant and Company and the rights of the Company and
Consultant set forth in Sections 6, 7, 8, 9, 10 and 11 (the "Restrictive
Covenants") shall survive any termination or expiration of this Agreement.

                                       5
<PAGE>

     12.  Rights and Remedies Upon Breach. If Consultant or Company breaches or
          -------------------------------
threatens to commit a breach of any of the provisions of the Restrictive
Covenants, the Company or Consultant shall have the following rights and
remedies, each of which rights and remedies shall be independent of the other
and severally enforceable, and all of which rights and remedies shall be in
addition to, and not in lieu of, any other rights and remedies available to the
Company or Consultant under law or in equity.

             (a)  Specific Performance. The right and remedy to have the
                  --------------------
Restrictive Covenants specifically enforced by any court having equity
jurisdiction, all without the need to post a bond or any other security or to
prove any amount of actual damage or that money damages would not provide an
adequate remedy, it being acknowledged and agreed that any such breach or
threatened breach will cause irreparable injury to the Company or Consultant and
that money damages will not provide adequate remedy to the Company or
Consultant.

             (b)  Damages. In the event any of the Restrictive Covenants are
                  -------
breached by the Consultant or the Company, the breaching party shall be liable
to the other party for all direct damages resulting therefrom, excluding,
however, any punitive and any consequential damages.

             (c)  Severability of Covenants/Blue Pencilling. If any court
                  -----------------------------------------
determines that any of the Restrictive Covenants, or any part thereof, is
invalid or unenforceable, the remainder of the Restrictive Covenants shall not
thereby be affected and shall be given full effect, without regard to the
invalid portions; and

             (d)  Enforceability in Jurisdictions. The Company and Consultant
                  -------------------------------
intend to and do hereby confer jurisdiction to enforce the Restrictive Covenants
upon the courts of any jurisdiction within the geographical scope of such
covenants. If the courts of any one or more of such jurisdictions hold the
Restrictive Covenants wholly unenforceable by reason of the breadth of such
scope or otherwise, it is the intention of the Company and Consultant that such
determination not bar or in any way affect the right of the Company or the
Consultant to the relief provided above in the courts of any other jurisdiction
within the geographical scope of such covenants, as to breaches of such
covenants in such other respective jurisdictions, such covenants as they relate
to each jurisdiction being, for this purpose, severable into diverse and
independent covenants.

     13.  Termination. In addition to any other termination provisions contained
          -----------
herein, this agreement may be terminated:

          (a)  By either party for "cause" in the event of a material breach of
this Agreement by the other party which is not cured after thirty (30) days'
written notice from the non-breaching party specifying the nature of the breach;

          (b)  Upon the death or permanent disability of Consultant;

          (c)  At such time, if any, as the Company shall be adjudicated
insolvent or bankrupt, make an assignment for the benefit of creditors, shall
commence, approve or consent to a case or any proceeding under any bankruptcy,
reorganization or similar law, or have an involuntary case or proceeding in
bankruptcy or reorganization commenced against it, which is not dismissed within
90 days or ceases to conduct business for any reason whatsoever.

                                       6
<PAGE>

     Termination for any of these subsection (c) reasons shall be effective
     automatically upon such event without notice to either party; or

          (d)  At the election of the Company or Consultant, by giving sixty
(60) days' written notice thereof to the other party.

          Upon termination of this Agreement, Consultant shall not be obligated
to render any additional services to the Company and the Company shall not be
obligated to make any additional payments to Consultant, whether in the form of
Consulting Fees or otherwise; provided, however, the Company shall pay
Consultant for any uncompensated services theretofore rendered by Consultant.

     14.  Return of the Company's Property. If this Agreement is terminated for
          --------------------------------
any of the reasons specified in Section 13, the Company shall have the right, at
its option, to require Consultant to vacate Consultant's offices, if any, on the
Company's premises prior to the effective date of termination and to cease all
activities on the Company's behalf. Upon the termination of Consultant's
engagement in any manner, Consultant shall immediately surrender to the Company
all notes, data, sketches, drawings, manuals, documents, records, data bases,
programs, computer diskettes, printouts, blueprints, memoranda, specifications,
customer lists, financial reports, equipment and all other physical forms of
expression incorporating or containing any Confidential Information, and all
lists, books and records of, or in connection with, the Company's business, and
all other property belonging to the Company, it being distinctly understood that
all such items are the property of the Company.

     15.  No Conflicting Agreements. Consultant represents and warrants to the
          -------------------------
Company that to the best of his knowledge there are no agreements, commitments
or relationships to which Consultant is a party which would prevent Consultant's
timely and complete performance of the terms and conditions of this Agreement,
and Consultant knowingly shall not enter into any such agreement, commitment or
relationship during the term of this Agreement.

     16.  Indemnification.
          ---------------
          (a)  By Consultant. Consultant shall indemnify, defend and hold
               -------------
harmless the Company, its officers, directors, shareholders, employees and
agents and their respective successors and assigns, from and against any and all
claims, demands, liabilities, losses, expenses, costs, obligations, recoveries
or damages of any nature whatsoever, whether accrued, absolute, contingent or
otherwise, including without limitation court costs and reasonable attorneys'
fees (whether or not suit is brought), arising out of or resulting from or
relating to any material breach by Consultant of any of Consultant's covenants
contained in this Agreement, or by any acts or omissions of Consultant. This
indemnification obligation shall survive any termination of this Agreement.

          (b)  By Company.  Company shall indemnify, defend and hold harmless
               ---------
the Consultant and his heirs, successors and permitted and authorized assigns,
from and against any and all claims, demands, liabilities, losses, expenses,
costs, obligations, recoveries or damages of any nature whatsoever, whether
accrued, absolute, contingent or otherwise, including without limitation court
costs and reasonable attorneys' fees (whether or not suit is brought), arising
out

                                       7
<PAGE>

of or resulting from or relating to any material breach by Company of any of
Company's covenants contained in this Agreement, or by any acts or omissions of
the Company. This indemnification obligation shall survive any termination of
this Agreement.

     17.  Mediation and Arbitration. Any dispute or controversy arising under
          -------------------------
this Agreement or concerning Consultant's engagement by the Company (including,
without limitation, any controversy as to the availability of any dispute) which
the parties have been unable to resolve themselves shall be settled exclusively
by voluntary mediation by the parties before a jointly appointed mediator, such
appointment of the mediator by the parties to occur within 15 days after receipt
of written notice by either party from the other party hereto concerning
proceeding into mediation for such unresolved dispute. Such voluntary mediation
shall be concluded promptly in Boston, Massachusetts. In the event the parties
do not reach a voluntary agreement in mediation or in the event either party
declines to participate in mediation then such dispute shall be settled by
arbitration to be held in Boston, Massachusetts, before a single arbitrator in
accordance with the rules of the American Arbitration Association ("AAA") then
in effect relating to the arbitration of employment disputes, provided, however,
that any claims relating to the Restrictive Covenants shall be resolved through
the courts. In the event the parties fail to promptly reach agreement on the
appointment of the joint arbitrator within 30 days after receipt by either party
to this Agreement concerning such appointment, then such arbitrator shall be
chosen by the General Manager of the AAA office located in Boston,
Massachusetts. Judgment may be entered on the arbitrator's award in any court
having jurisdiction, and the parties consent to the jurisdiction of the
Massachusetts courts for that purpose.

     18.  Notices. All notices, requests and other communications of any kind
          -------
which either party hereto may be required or desires to serve upon the other
party under the terms of this Agreement shall be in writing and shall be
delivered by courier or other means of personal service (including by means of a
nationally recognized courier service or a professional return receipt
requested, in all cases addressed to:

          If to Consultant:  Ian W. Hunter
                             6 Oakdale Lane
                             Lincoln, Massachusetts  01773
                             Fax No. (781) 259-3308

          If to Company:     Lifef/x Networks, Inc.
                             8 Cambridge Center
                             Cambridge, Massachusetts  02142
                             Fax No. (617) 551-5862
                             Attention:  Lucille Salhany,
                                          CEO and Co-President

All notices, requests and other communications shall be deemed given on the date
of actual receipt or delivery to the address set forth above.  In case of
service by telecopy, a copy of such notice shall be personally delivered or sent
by registered or certified mail, in the manner set forth above, within three (3)
business days thereafter.  Either party hereto may from time to time by notice
in writing served as set forth above designate a different address or a
different or additional person to which all such notices or communications
thereafter are to be given.

                                       8
<PAGE>

     19.  Attorneys' Fees. In the event of any action, proceeding or arbitration
          ---------------
between the parties hereto to enforce any provision or right hereunder, the
unsuccessful party to such action or proceeding shall pay the successful party
all costs and expenses, including but not limited to, reasonable attorneys' fees
incurred therein by such successful party, which cost, expenses and attorneys'
fees shall be included in and as a part of any judgment or award rendered in
such action or proceeding.

     20.  Relationship and Authority. The relationship between the Company and
          --------------------------
Consultant intended to be created by this Agreement is that of two separate and
independent contractors, and nothing herein contained shall be construed as
creating a relationship of employer and employee or principal and agent between
them. Consultant shall neither act nor make any representation that Consultant
is authorized to act as an employee, agent or officer of the Company.

     21.  Assignment. The services to be rendered and the duties to be performed
          ----------
by Consultant hereunder are of a unique and personal nature. Nothing contained
in this Agreement shall be construed to permit the assignment by Consultant of
any right or obligation under this Agreement and any such assignment is
expressly prohibited without the prior written consent of the Company, which may
be granted or withheld in the Company's sole and absolute discretion.

     22.  Section Headings. The headings of the several sections and paragraphs
          ----------------
of this Agreement are inserted solely for convenience of reference and are not a
part hereof and are not intended to govern, limit or aid in the construction of
any term or provision hereof.

     23.  Entire Agreement. This Agreement (including the exhibits hereto) and
          ----------------
the agreements, documents and instruments to be executed and delivered pursuant
hereto or thereto are intended to embody the final, complete and exclusive
agreement among the parties with respect to the subject matter hereof; are
intended to supersede all prior agreements, understandings and representations
written or oral, with respect thereto; and may not be contradicted by evidence
of any such prior to contemporaneous agreement, understanding or representation,
whether written or oral.

     24.  Engagement at Will.  Any continuance of Consultant's engagement by the
          ------------------
Company and Consultant after the expiration of the Term of this Agreement shall
be deemed an engagement at will and shall be subject to termination with or
without cause by either Company or Consultant upon delivery of notice thereof to
the other party.  In all other respects, any such continuance of engagement
shall be upon the terms and conditions as set forth herein or as otherwise
mutually agreed upon by the parties hereto.

     25.  Waiver; Modification.  No provision of this Agreement may be amended,
          --------------------
modified or waived except by an agreement in writing signed by the party against
whom the enforcement of any such waiver, amendment or modification is sought.

     26.  Severability and Interpretation.  The provisions of this Agreement are
          -------------------------------
severable, and in the event that any provision is declared invalid, this
Agreement shall be interpreted as if such invalid provision were not contained
herein.  Rules of construction and interpretation and other legal fictions such
as, but not limited to, construction against the draftsman shall not be

                                       9
<PAGE>

employed in the interpretation hereof, and all words and phrases shall be given
their common sense English language meaning.

     27.  Applicable Law and Venue. This Agreement shall constitute a contract
          ------------------------
under the internal laws of the Commonwealth of Massachusetts and shall be
governed and construed in accordance with the internal laws of said Commonwealth
and without regard to the conflicts of laws principles thereof. Subject to the
provisions of Section 17, and except as provided in Section 12, any action or
proceeding brought hereunder shall be brought in the state or federal courts
sitting in Boston, Massachusetts, the parties hereto hereby waiving any claim or
defense that such forum in not convenient or proper. Each party hereby agrees
that any such court shall have in personam jurisdiction over it, consents to
service of process in any manner authorized by Massachusetts law, and agrees
that a final judgment in any such action or proceeding, subject to any appeal
rights, shall be conclusive and may be enforced in other jurisdictions by suit
on the judgment or in any other manner specified by law.

     28.  Further Assurances.  The Company and Consultant shall, whenever and as
          ------------------
often as reasonably requested to do so by the other party, execute, acknowledge
and deliver or cause to be executed, acknowledged or delivered, any and all
agreements and instruments as may be necessary, expedient or proper in the
opinion of the requesting party to carry out the intent and purposes of this
Agreement.  The parties hereto acknowledge and agree in general covenants of
good faith and fair dealings with one another pursuant to the terms and
conditions of this Agreement.

     29.  Gender; Tense; etc. Where the context or construction herein permits
          ------------------
or requires, all words applied in the plural shall be deemed to include the
singular, and vice versa; the masculine shall include the feminine and neuter,
and vice versa; and the present tense shall include the past and future tenses,
and vice versa.

     30.  Counterparts. This Agreement may be executed simultaneously in any
          ------------
number of counterparts, each of which shall be deemed an original but all of
which together shall constitute one and the same agreement, and the parties may
employ facsimile signatures.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first set forth above.

                              Lifef/x Networks, Inc.,
                              a Delaware corporation

                              By: /s/ Michael Rosenblatt
                                 _______________________

                                 Its: Chairman and Co-
                                      President
                                     ___________________

                              /s/ Ian Hunter
                              __________________________
                              Ian W. Hunter

                                       10
<PAGE>

                                   Addendum A
                                   ----------

Lifef/x Standins.  Lifef/x Standins are photo-realistic 3D computer models,
which can be animated in real time by text or speech files.  The simplest form
of consumer level Standins can be created from 2D digital images, which the
consumer can send to us electronically via our planned Web site, or traditional
analog photo images, sent to us via the postal service.  The completed digital
Standins will be delivered to users via the Web.  We envision that the Standins
can be used with e-mail, Web pages, chatrooms, PC games, corporate Intranets and
extranets and many other applications.  We plan to make the Lifef/x Standins
compatible for different products including PC games, operating systems as
screen saver and e-mail, chatrooms, online help, etc.  All products will share
the same technology architecture and Standins will be interchangeable, serving
as the foundation for an expandable and interconnected software platform.
Alternatively, the user can get animation commands streamed in real time for the
Web at bandwidths of 28.8Kbps or more after the Standin is downloaded to the
player.

Professional Standins.  More sophisticated and articulated Standins
("Professional Standins") can be created and then animated by actual human
performances that can be captured utilizing our patent pending proprietary
motion capture system that is driven by the Lifef/x technology.  The captured
performance of the Professional Standin can then be reproduced on the Lifef/x
Genesis Player from downloaded Lifef/x media files.  Alternatively, the user can
get animation commands streamed in real time over the Web at bandwidths of
28.8Kbps or more after the Professional Standin is downloaded to the player.

Lifef/x Genesis Player V1.0.  The Lifef/x Genesis Player will be a highly
flexible, programmable player that can be used either for streaming animation
commands of captured Lifef/x Standin performances over the Internet or for
online, real time interactive content generation. It will be developed as a
flexible programming component that can be used and programmed inside a Web
browser, to read e-mail or perform a number of system interactions.  When
programmed using either the Jscript of Vbscript languages inside Web sites,
Standins will be capable of complex autonomous interactions with the user.
Standins will be capable of being active or inactive, visible or not visible and
will provide autonomous behavior while waiting for user interactions or Web data
to be downloaded.  The first version will allow to use Text-To-Speech to read
text messages, and the second version will use recorded voice, which could be
recorded and saved for later delivery or streamed.  When played back, the
Lifef/x standin lips and face will be correctly animated from the audio signal.

Lifef/x Email interfaces.  Specific interfaces will be developed to end-user
------------------------
email programs such as Microsoft Outlook Express, Microsoft Outlook, Netscape
Mail, etc.  These will allow users to use their usual email program and in
addition be able to send or receive messages that are to be delivered with the
Lifef/x standins.

Lifef/x Messaging (IM) Interfaces.  Interfaces and modules will be added to
---------------------------------
Instant Messaging systems such that users will be able to use standins in the IM
conversations.  These features will be added to existing IM systems.

                                       11
<PAGE>

Lifef/x chat Room Interfaces.  Similar to IM, Lifef/x interfaces to common chat
----------------------------
room interfaces will allow users to use standins in chat rooms.

Lifef/x Director.  Our Lifef/x Director software will allow the additional
animation and control of Standins for uses such as sending e-mails with embedded
animation commands.  Using the software, the user will be able to add four basic
emotions (happy, sad, angry, surprised) and simple motions.

Lifef/x Creator Software.  Our Lifef/x Creator software will be offered to
sophisticated Web users as an advanced tool to control Stands for integration in
Web pages, e-mail or to create Lifef/x media files.  This program will be a
simplified version of the Lifef/x Pro-Creator (discussed below) and this
software will be developed simultaneously with and have the same components as
the Lifef/x Pro-Creator, except for certain customizations.  The Lifef/x Creator
will be expandable by adding our Lifef/x e-Motor Packs which are packages of
emotional cues.

Lifef/x Pro-Creator Software.  The Lifef/x Pro-Creator software will allow the
professional Web designer to fully animate and control Lifef/x Standins using a
flexible and powerful graphical user interface.  This digital studio will allow
the designer to control the position, lighting, expressions, emotions, and
movement of the Standins and how they interact.

Lifef/x SDK.  We plan to develop the Lifef/x SKD as a component for software
developers to include in their applications.  It will integrate Lifef/x Standins
in applications, such as PC games and other software, as computer hosts to lead
users through new programs and equipment, or for e-mail, screen savers, etc.

                                       12
<PAGE>

LifeFX Development to be undertaken by Ian W. Hunter

1.   Nonlinear System Identification (NLSYSID) for speech synchronization and
     viseme generation

  .  Generation of NLSYSID Tools
  .  Preliminary test of nonlinear system identification for predicting mouth
     positions
  .  Acquisition of accurate data for training the NLSYSID technique
  .  NLSYSID applied to training data set
  .  Verification of accuracy of NLSYSID to predict mouth opening, rounding and
     position

2.   NLSYSID applied to Vestibulo-Ocular Reflex

  .  Generation of NLSYSID GUI to test the NLSYSID technique
  .  Preliminary evaluation of NLSYSID for modeling the VOR
  .  Data acquisition of VOR data including eye and head position
  .  Accurate modeling of NLSYSID
  .  Verification of accuracy of VOR nonlinear model

3.   Automation of Face Mapping

  .  GUI development for displaying images and controls
  .  Collection of anthropomorphic data for location of facial fiducial points
  .  Development of basic image processing functions
  .  Development of new cross-correlation based on hyperbolic transforms for
     feature detection
  .  Application of NLSYSID for automating operator detection
  .  NLSYSID techniques for fitting basis functions (e.g. Hermite, B-Splines) to
     face profile

4.   Windows Media Software

  .  Creation of ASF streaming files from MPEG and AVI file formats
  .  ASX coding and embedding ASF streams with additional data (XML)
  .  Embedding private data in ASF streams
  .  Embedding commands and programs in ASF streams

5.   Development of embedded behaviors and automatisms

  .  Module for automatic switching and time spanning of "attention" and subject
     of mental focus, particularly in applications to vision control
  .  Generation of random head movements and rotations

                                       13

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