Document:

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                                                                   EXHIBIT 10.31

                        AGREEMENT AND PLAN OF ARRANGEMENT

                                     Between

                              WORLDWIDE FIBER INC.

                                       and

                      GLOBENET COMMUNICATIONS GROUP LIMITED

                           Dated as of March 11, 2000

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                                TABLE OF CONTENTS
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                                   ARTICLE I.

                    The Arrangement; Closing; Effective Time

   1.1. The Arrangement...................................................................................1
   1.2. Closing...........................................................................................1
   1.3. Effective Time....................................................................................2

                                   ARTICLE II.

              Memorandum of Association and Bye-Laws of the Company

   2.1. Memorandum of Association.........................................................................2
   2.2. The Bye-Laws......................................................................................2

                                  ARTICLE III.

                      Officers and Directors of the Company

   3.1. Directors.........................................................................................3
   3.2. Officers..........................................................................................3

                                   ARTICLE IV.

      Effect of the Arrangement on Capital Stock; Exchange of Certificates

   4.1. Effect on Capital Stock...........................................................................3
   4.2. Exchange of Certificates for Shares...............................................................4
   4.3. Adjustments to Prevent Dilution...................................................................6

                                   ARTICLE V.

                         Representations and Warranties

   5.1. Representations and Warranties of the Company.....................................................7
   5.2. Representations and Warranties of Parent.........................................................19

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                                   ARTICLE VI.

                                    Covenants

   6.1. Interim Operations...............................................................................23
   6.2. Acquisition Proposals............................................................................25
   6.3. Information Supplied.............................................................................26
   6.4. Implementation Steps.............................................................................26
   6.5. Filings; Other Actions; Notification.............................................................27
   6.6. Taxation.........................................................................................28
   6.7. Access...........................................................................................29
   6.8. Affiliates.......................................................................................29
   6.9. Stock Exchange Listing and Delisting.............................................................30
   6.10. Publicity.......................................................................................30
   6.11. Benefits........................................................................................30
   6.12. Expenses........................................................................................31
   6.13. Indemnification.................................................................................31
   6.14. Takeover Statute................................................................................32
   6.15. Parent Capital Reorganization...................................................................32
   6.16. Covenants Relating to Tax Free Status of the Arrangement........................................33
   6.17. PFIC and GRA Covenants..........................................................................33
   6.18. System Expansion Requirements...................................................................34

                                  ARTICLE VII.

                                   Conditions

   7.1. Conditions to Each Party's Obligation to Effect the Arrangement..................................35
   7.2. Conditions to Obligations of Parent..............................................................36
   7.3. Conditions to Obligation of the Company..........................................................37

                                  ARTICLE VIII.

                                   Termination

   8.1. Termination by Mutual Consent....................................................................38
   8.2. Termination by Either Parent or the Company......................................................38
   8.3. Termination by the Company.......................................................................38
   8.4. Termination by Parent............................................................................39
   8.5. Effect of Termination and Abandonment............................................................39

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                                   ARTICLE IX.

                            Miscellaneous and General

   9.1. Survival.........................................................................................39
   9.2. Modification or Amendment........................................................................40
   9.3. Waiver of Conditions.............................................................................40
   9.4. Counterparts.....................................................................................40
   9.5. GOVERNING LAW AND VENUE; WAIVER OF JURY TRIAL....................................................40
   9.6. Notices..........................................................................................41
   9.7. Entire Agreement.................................................................................42
   9.8. No Third Party Beneficiaries.....................................................................42
   9.9. Obligations of Parent and of the Company.........................................................42
   9.10. Severability....................................................................................43
   9.11. Interpretation..................................................................................43
   9.12. Assignment......................................................................................43
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Exhibits
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Form of Company Affiliates Letter..................................................................Exhibit A
Summary of New Parent Capital Stock................................................................Exhibit B
Registration Rights Terms..........................................................................Exhibit C
Company Business Plans.............................................................................Exhibit D
Parent Tax Representation Letter...................................................................Exhibit E
Company Tax Representation Letter..................................................................Exhibit F
Backhaul Requirements..............................................................................Exhibit G
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                             Index of Defined Terms

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Term                                                                                               Section
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Acquisition Proposal...................................................................................6.2
Affiliates Letter......................................................................................6.8
Arrangement............................................................................................1.3
Arrangement Consideration...........................................................................4.1(a)
Audit Date..........................................................................................5.1(e)
Backhaul Requirements..............................................................................6.18(a)
Bankruptcy and Equity Exception.....................................................................5.1(c)
Bermuda Act............................................................................................1.1
Bermuda Court..........................................................................................1.3
Final Order............................................................................................1.3
Interim Order..........................................................................................6.4
Bermuda Registrar......................................................................................1.3
Bye-Laws...............................................................................................2.2
Canadian ITA...........................................................................................6.6
Capital Reorganization................................................................................6.15
Certificate.........................................................................................4.1(a)
Class A Share.......................................................................................5.1(b)
Class B Share.......................................................................................4.1(a)
Closing................................................................................................1.2
Closing Date...........................................................................................1.2
Code..............................................................................................Recitals
Common Share........................................................................................4.1(a)
Communications Act..................................................................................5.1(i)
Company...........................................................................................Preamble
Company Disclosure Letter..............................................................................5.1
Company FCC Licenses................................................................................5.1(i)
Company Intellectual Property Rights................................................................5.1(p)
Company Labor Agreements............................................................................5.1(m)
Company Option......................................................................................5.1(b)
Company Proxy Statement................................................................................6.3
Company Reports.....................................................................................5.1(e)
Company Requisite Vote..............................................................................5.1(c)
Company Shareholders Meeting...........................................................................6.4
Compensation and Benefit Plans......................................................................5.1(h)
Confidentiality Agreement..............................................................................9.7
Contracts...........................................................................................5.1(d)
Costs..............................................................................................6.13(a)
Credit Agreement....................................................................................5.1(b)
Effective Time.........................................................................................1.3
Environmental Law...................................................................................5.1(k)

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ERISA...............................................................................................5.1(h)
Exchange Act........................................................................................5.1(c)
Exchange Agent......................................................................................4.2(a)
Exchange Fund.......................................................................................4.2(a)
Existing Parent Capital Stock.......................................................................5.2(a)
Excluded Share......................................................................................4.1(a)
FCC.................................................................................................5.1(i)
FCC Applications....................................................................................6.5(d)
Form F-1............................................................................................5.2(e)
Funded Benefit Plan.................................................................................5.1(h)
GAAP................................................................................................5.1(e)
Governmental Consents...............................................................................7.1(b)
Governmental Entity.................................................................................5.1(d)
Hazardous Substance.................................................................................5.1(k)
HSR Act................................................................................................7.1
Indemnified Parties................................................................................6.13(a)
Initial Public Offering Price.......................................................................4.1(a)
Laws................................................................................................5.1(i)
Liens...............................................................................................5.1(b)
Material Adverse Effect.............................................................................5.1(a)
Memorandum of Association..............................................................................2.1
New Parent Capital Stock............................................................................5.2(a)
Order...............................................................................................7.1(c)
Parent............................................................................................Preamble
Parent Audit Date...................................................................................5.2(e)
Parent Class A Stock................................................................................4.1(a)
Parent Companies....................................................................................4.1(a)
Parent Disclosure Letter...............................................................................5.2
Parent Material Adverse Effect......................................................................5.2(f)
Parent Reports......................................................................................5.1(e)
Parent Stock Plan...................................................................................5.1(a)
Person..............................................................................................4.2(b)
Representatives........................................................................................6.7
Scheme of Arrangement..................................................................................1.3
SEC.................................................................................................5.1(e)
Securities Act......................................................................................4.1(a)
Security Document...................................................................................5.1(b)
Shares..............................................................................................4.1(a)
Stock Plan..........................................................................................5.1(b)
Subsidiary..........................................................................................5.1(a)
Takeover Statute....................................................................................5.1(j)
Tax.................................................................................................5.1(l)
Tax Return..........................................................................................5.1(l)
Termination Date.......................................................................................8.2

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Third Party Intellectual Property Rights............................................................5.1(p)
Valuation...........................................................................................5.1(h)
Voting Agreement..................................................................................Recitals
Voting Debt.........................................................................................5.1(b)
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                        AGREEMENT AND PLAN OF ARRANGEMENT

                  AGREEMENT AND PLAN OF ARRANGEMENT (hereinafter called this
"Agreement"), dated as of March 11, 2000, between GlobeNet Communications Group
Limited, a Bermuda company (the "COMPANY"), and Worldwide Fiber Inc., a Canadian
corporation ("PARENT").

                                    RECITALS

                  WHEREAS, the respective boards of directors of each of Parent
and the Company have approved the Arrangement (as defined herein) and the other
transactions contemplated by this Agreement upon the terms and subject to the
conditions set forth in this Agreement;

                  WHEREAS, concurrently with the execution and delivery of this
Agreement and as a condition and inducement to Parent's willingness to enter
into this Agreement, Parent and certain shareholders of the Company have entered
into a Voting Agreement dated as of the date of this Agreement (the "VOTING
AGREEMENT"), pursuant to which such shareholders have agreed, among other
things, to vote their common shares and class B restricted voting shares of the
Company in favor of the Arrangement;

                  WHEREAS, the Company and Parent intend that the Arrangement
qualify as a tax-free reorganization within the meaning of Section 368(a) of the
Internal Revenue Code of 1986, as amended (the "CODE"); and

                  WHEREAS, the Company and Parent desire to make certain
representations, warranties, covenants and agreements in connection with this
Agreement.

                                   ARTICLE I.

                    The Arrangement; Closing; Effective Time

         1.1. THE ARRANGEMENT. Upon the terms and subject to the conditions set
forth in this Agreement, at the Effective Time (as defined in Section 1.3)
Parent and the Company shall effect the Arrangement, pursuant to which shares of
the Company shall be exchanged for shares of Parent as more fully described
herein. The Arrangement shall have the effects specified under Section 99 of the
Bermuda Companies Act 1981 ("BERMUDA ACT").

         1.2. CLOSING. The closing of the Arrangement (the "CLOSING") shall take
place (i) at the offices of Sullivan & Cromwell, 125 Broad Street, New York, New
York at 9:00 A.M. on the first business day on which the last to be fulfilled or
waived of the conditions set forth in Article VII (other than those conditions
that by their nature are to be satisfied at the Closing, but subject to the
fulfillment or waiver of those conditions) shall be satisfied or waived in
accordance with this Agreement or (ii) at such other place and

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time and/or on such other date as the Company and Parent may agree in writing
(the "CLOSING DATE").

         1.3. EFFECTIVE TIME. As soon as practicable following the Final Order
(as such term is defined in the Scheme of Arrangement (as defined below)), the
Company and Parent will cause the Final Order to be delivered to the Registrar
of Companies in Bermuda (the "BERMUDA REGISTRAR") under Section 99(3) of the
Bermuda Act. The Arrangement shall become effective on the Closing Date when the
Bermuda Final Order is delivered to the Bermuda Registrar for registration (the
"EFFECTIVE TIME").

         As used herein the terms (i) "ARRANGEMENT" means an arrangement under
Section 99 of the Bermuda Act on the terms and subject to the conditions set
forth in the Scheme of Arrangement, as the same may be amended (A) in accordance
with this Agreement or the Scheme of Arrangement or (B) at the direction of the
Bermuda Court (as defined in the Scheme of Arrangement) in the Final Order or
(ii) "SCHEME OF ARRANGEMENT" means the scheme of arrangement in form and
substance consistent with this Agreement to be agreed upon by Parent and the
Company as the same may be amended at the direction of the Bermuda Court in the
Final Order.

                                  ARTICLE II.

                     Memorandum of Association and Bye-Laws
                                 of the Company

         2.1. MEMORANDUM OF ASSOCIATION. The memorandum of association of the
Company as in effect immediately prior to the Effective Time shall be the
memorandum of association of the Company (the "MEMORANDUM OF ASSOCIATION"),
until thereafter amended as provided therein or by applicable law.

         2.2. THE BYE-LAWS. The bye-laws of the Company in effect at the
Effective Time shall be the bye-laws of the Company (the "BYE-LAWS"), until
thereafter amended as provided therein or by applicable law.

                                  ARTICLE III.

                             Officers and Directors
                                 of the Company

         3.1. DIRECTORS. The directors of the Company immediately after the
Effective Time shall be directors appointed by the chief executive officer of
Parent, until their successors have been duly elected or appointed and qualified
or until their earlier death, resignation or removal in accordance with the
Memorandum of Association and the Bye-Laws.

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         3.2. OFFICERS. The officers of the Company immediately after the
Effective Time shall be officers appointed by the chief executive officer of
Parent, until their successors have been duly elected or appointed and qualified
or until their earlier death, resignation or removal in accordance with the
Memorandum of Association and the Bye-Laws.

                                   ARTICLE IV.

                  Effect of the Arrangement on Capital Stock;
                            Exchange of Certificates

         4.1. EFFECT ON CAPITAL STOCK. At the Effective Time, as a result of the
Arrangement and without any action on the part of the holder of any shares of
the Company:

         (a) ARRANGEMENT CONSIDERATION. (i) Each common share, par value $1.50
per share, of the Company (a "COMMON SHARE") issued and outstanding immediately
prior to the Effective Time (other than Common Shares owned by Parent or any
direct or indirect subsidiary of Parent (collectively, the "PARENT COMPANIES")
or Common Shares that are owned by any direct or indirect subsidiary of the
Company and in each case not held on behalf of third parties (each, an "EXCLUDED
SHARE" and collectively, "EXCLUDED SHARES")) shall be exchanged for that number
of Class A Subordinate Voting Shares of Parent ("PARENT CLASS A STOCK") equal to
(i) (x) 323,141,801 (300 million PLUS the Aggregate Strike Price (as defined
below)) DIVIDED BY 18,952,099 (the number of Common Shares outstanding, on a
fully diluted basis, as of the date of this Agreement) DIVIDED BY (y)) the
lesser of (A) 10 billion DIVIDED BY that number of shares of New Parent Capital
Stock (other than the Parent Class B Subordinate Voting Shares) to be
outstanding immediately following the Initial Public Offering (as defined below)
and (B) the Initial Public Offering Price PLUS (ii) (x) 323,141,801 (300 million
PLUS the Aggregate Strike Price DIVIDED BY 18,952,099 (the number of Common
Shares outstanding, on a fully diluted basis, as of the date of this Agreement))
DIVIDED BY (y) the Initial Public Offering Price (as defined below), stated as a
number ((i) and (ii) together the "ARRANGEMENT CONSIDERATION"). The "INITIAL
PUBLIC OFFERING PRICE" shall be the price of the first closed sale under a firm
commitment underwritten public offering of Parent Class A Stock pursuant to a
registration statement on Form F-1 (the "Initial Public Offering") under the
Securities Act of 1933, as amended (the "SECURITIES ACT"). The "AGGREGATE STRIKE
PRICE" shall be the aggregate exercise price for all Company Options (as defined
herein) outstanding as of the date of this Agreement. At the Effective Time, all
Common Shares (other than Excluded Shares) shall be transferred to, and
registered in the name of, Parent and a certificate for all such Common Shares
shall be issued and registered in the name of Parent, and each certificate (a
"CERTIFICATE") formerly representing any of such Common Shares shall thereafter
represent the right of the holders such Common Shares to receive the Parent
Class A Stock to which they are entitled pursuant to this Section 4.1.

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         (ii) In consideration for the Parent Class A Stock issued pursuant to
Section 4.1(a)(i) (and for no further consideration) each class B restricted
voting share, par value $1.50 per share, of the Company (a "CLASS B SHARE" and
together 9with the Common Shares, the "SHARES") issued and outstanding
immediately prior to the Effective Time shall be transferred to, and registered
in the name of, Parent.

         (b) EXCLUDED SHARES. Each Excluded Share shall, by virtue of the
Arrangement and without any action on the part of the holder thereof, be
transferred to, and registered in the name of, Parent for no consideration.

         (c) FRACTIONAL SHARES. Notwithstanding any other provision of this
Agreement, no fractional shares of Parent Class A Stock will be issued. Parent
shall round to the nearest whole share, with .50 being rounded downward, the
number of shares of Parent Class A Stock that any holder of Shares would be
entitled to receive as Arrangement Consideration but for this Section 4.1(c).

         4.2. EXCHANGE OF CERTIFICATES FOR SHARES. (a) EXCHANGE AGENT. As of the
Effective Time, Parent shall deposit, or shall cause to be deposited, with an
exchange agent selected by Parent with the Company's prior approval, which shall
not be unreasonably withheld (the "EXCHANGE AGENT"), for the benefit of the
holders of Shares (other than holders of Excluded Shares), certificates
representing the shares of Parent Class A Stock to be issued pursuant to the
last sentence of Section 4.1(a) in exchange for Shares outstanding immediately
prior to the Effective Time upon due surrender of the Certificates (or
affidavits of loss or indemnities in lieu thereof) pursuant to the provisions of
this Article IV (such certificates for shares of Parent Class A Stock being
hereinafter referred to as the "EXCHANGE FUND").

         (b) EXCHANGE PROCEDURES. Promptly after the Effective Time, Parent
shall cause the Exchange Agent to mail to each holder of record of Shares (other
than holders of Excluded Shares) (i) a letter of transmittal specifying that
delivery shall be effected, and risk of loss to the Certificates shall be
issued, only upon delivery of the Certificates (or affidavits of loss or
indemnities in lieu thereof) to the Exchange Agent, such letter of transmittal
to be in such form and have such other provisions as Parent and the Company may
reasonably agree, and (ii) instructions for use in effecting the surrender of
the Certificates in exchange for certificates representing shares of Parent
Class A Stock. Subject to Section 4.2(g), upon surrender of a Certificate to the
Exchange Agent together with such letter of transmittal, duly executed, the
holder of such Certificate shall be entitled to receive in exchange therefor a
certificate representing that number of whole shares of Parent Class A Stock
that such holder is entitled to receive pursuant to this Article IV.
Certificates surrendered to the Exchange Agent shall be held by the Exchange
Agent for delivery to Parent in a manner to be agreed upon by Parent and the
Exchange Agent. In the event of a transfer of ownership of Shares that is not
registered in the transfer records of the Company, a certificate representing
the proper number of shares of Parent Class A Stock may be issued to such a
transferee if the Certificate formerly representing such Shares is presented to
the Exchange Agent, accompanied by all documents required to

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evidence and effect such transfer. If any certificate for shares of Parent Class
A Stock is to be issued in a name other than that in which the Certificate
surrendered in exchange therefor is registered, it shall be a condition of such
exchange that the Person (as defined below) requesting such exchange shall
provide evidence satisfactory to Parent with respect thereto.

         For the purposes of this Agreement, the term "PERSON" shall mean any
individual, corporation (including not-for-profit), general or limited
partnership, limited liability company, joint venture, estate, trust,
association, organization, Governmental Entity (as defined in Section 5.1(d)) or
other entity of any kind or nature.

         (c) DISTRIBUTIONS WITH RESPECT TO UNEXCHANGED SHARES; VOTING. (i) All
shares of Parent Class A Stock to be issued pursuant to the Arrangement shall be
deemed issued and outstanding as of the Effective Time and whenever a dividend
or other distribution is declared by Parent in respect of the Parent Class A
Stock, the record date for which is at or after the Effective Time, that
declaration shall include dividends or other distributions in respect of all
shares issuable pursuant to this Agreement. No dividends or other distributions
in respect of the Parent Class A Stock shall be paid to any holder of any
unsurrendered Certificate until such Certificate is surrendered for exchange in
accordance with this Article IV. Subject to the effect of applicable laws,
following surrender of any such Certificate, there shall be issued to the holder
of the certificates representing whole shares of Parent Class A Stock issued in
exchange therefor, without interest, (A) at the time of such surrender, the
dividends or other distributions with a record date after the Effective Time
theretofore payable with respect to such whole shares of Parent Class A Stock
and not paid and (B) at the appropriate payment date, the dividends or other
distributions payable with respect to such whole shares of Parent Class A Stock
with a record date after the Effective Time but with a payment date subsequent
to surrender.

         (ii) Holders of unsurrendered Certificates shall be entitled to vote
after the Effective Time at any meeting of Parent shareholders the number of
whole shares of Parent Class A Stock represented by such Certificates,
regardless of whether such holders have exchanged their Certificates.

         (d) TRANSFERS. After the Effective Time, there shall be no transfers on
the stock transfer books of the Company of the Shares that were outstanding
immediately prior to the Effective Time other than to Parent.

         (e) TERMINATION OF EXCHANGE FUND. Any portion of the Exchange Fund that
remains unclaimed by the shareholders of the Company for 180 days after the
Effective Time shall be returned to Parent. Any shareholders of the Company who
have not theretofore complied with this Article IV shall thereafter look only to
Parent for issuance of the Certificates for their shares of Parent Class A Stock
upon due surrender of their Certificates (or affidavits of loss or indemnity in
lieu thereof), without any interest thereon. Notwithstanding the foregoing, none
of Parent, the Exchange Agent or any other

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Person shall be liable to any former holder of Shares for any amount properly
delivered to a public official pursuant to applicable abandoned property,
escheat or similar laws.

         (f) LOST, STOLEN OR DESTROYED CERTIFICATES. In the event any
Certificate shall have been lost, stolen or destroyed, upon the making of an
affidavit of that fact by the Person claiming such Certificate to be lost,
stolen or destroyed or the posting by such Person of a bond in customary amount
as indemnity against any claim that may be made against it with respect to such
Certificate, as determined by Parent, the Exchange Agent will issue and deliver
in exchange for such lost, stolen or destroyed Certificate the shares of Parent
Class A Stock and any unpaid dividends or other distributions in respect thereof
pursuant to Section 4.2(c).

         (g) AFFILIATES. Notwithstanding anything herein to the contrary,
Certificates surrendered for exchange by any Affiliate (as determined pursuant
to Section 6.8) of the Company shall not be exchanged until Parent has received
a written agreement from such Person as provided in Section 6.8 hereof.

         4.3. ADJUSTMENTS TO PREVENT DILUTION. In the event that the Company
changes the number of Shares or securities convertible or exchangeable into or
exercisable for Shares, or Parent changes the number of shares of Parent Class A
Stock or securities convertible or exchangeable into or exercisable for shares
of Parent Class A Stock, issued and outstanding prior to the Effective Time as a
result of a reclassification, stock split (including a reverse split), stock
dividend or distribution, recapitalization, Arrangement, subdivision, issuer
tender or exchange offer, or other similar transaction, the Arrangement
Consideration shall be equitably adjusted, PROVIDED, HOWEVER, that all
Arrangement Consideration shall be in the form of shares of Parent Class A
Stock.

                                   ARTICLE V.

                         Representations and Warranties

         5.1. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as set forth
in the corresponding sections or subsections of the disclosure letter delivered
to Parent by the Company on or prior to entering into this Agreement (the
"COMPANY DISCLOSURE LETTER"), the Company hereby represents and warrants to
Parent that as of the date hereof and as of the Closing Date (except to the
extent such representations and warranties expressly speak as of an earlier
date):

         (a) ORGANIZATION, GOOD STANDING AND QUALIFICATION. Each of the Company
and its Subsidiaries is a corporation or other entity duly organized, validly
existing and in good standing under the laws of its respective jurisdiction of
organization and has all requisite corporate or similar power and authority to
own and operate its properties and assets and to carry on its business as
presently conducted and is qualified to do business and is in good standing as a
foreign corporation or other entity in each jurisdiction where the ownership or
operation of its assets or properties or conduct of its

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business requires such qualification, except where the failure to be so
organized, qualified or in good standing, or to have such power or authority
when taken together with all other such failures, is not reasonably likely to
have a Material Adverse Effect (as defined below). The Company has made
available to Parent a complete and correct copy of the Company's and its
Subsidiaries' certificates of incorporation, memorandum of association and
bye-laws (or other constitutional documents), each as amended to date. The
Company's and its Subsidiaries' certificates of incorporation, memorandum of
association and bye-laws (or other constitutional documents) so delivered are in
full force and effect. The Company has made available to Parent the books and
records of the Company and its Subsidiaries. The books and records of the
Company and its Subsidiaries accurately reflect in all material respects any
transactions entered into by the Company or its Subsidiaries. Section 5.1(a) of
the Company Disclosure Letter contains a correct and complete list of each
jurisdiction where the Company and each of its Subsidiaries is organized and
qualified to do business.

         As used in this Agreement, the term (i) "SUBSIDIARY" means, with
respect to the Company or Parent, as the case may be, any entity, whether
incorporated or unincorporated, of which at least a majority of the securities
or ownership interests having by their terms ordinary voting power to elect a
majority of the board of directors or other persons performing similar functions
is directly or indirectly owned or controlled by such party or by one or more of
its respective Subsidiaries or by such party and any one or more of its
respective Subsidiaries and (ii) "MATERIAL ADVERSE EFFECT" means a material
adverse effect on the financial condition, properties, prospects, business or
results of operations of the Company and its Subsidiaries taken as a whole.

         (b) CAPITAL STRUCTURE. The authorized shares of the Company consists of
24,000,000 Common Shares, of which 17,043,900 shares were outstanding as of the
close of business on March 6, 2000, 100 Class A Restricted Voting Shares, par
value $1.50 per share ("CLASS A SHARES"), of which no shares were outstanding as
of the close of business on March 6, 2000, and 2,000 Class B Shares, of which
1,000 shares were outstanding as of the close of business on March 6, 2000. All
of the outstanding Shares have been duly authorized and are validly issued,
fully paid and nonassessable. The Company has no Shares or Class A Shares
reserved for issuance, except that, as of March 6, 2000, there were 1,908,199
Common Shares reserved for issuance pursuant to the Company's 1998 Share Option
and Incentive Plan and the 1997 TeleBermuda International Limited Directors,
Executives, Senior Management and Senior Staff Stock Option Plan (the "STOCK
PLANS") or otherwise. The Company Disclosure Letter contains a correct and
complete list of each outstanding option to purchase Common Shares (each a
"COMPANY OPTION"), including the holder, date of grant, exercise price and
number of Common Shares subject thereto. Each of the outstanding shares of
capital stock or other securities of each of the Company's Subsidiaries is duly
authorized, validly issued, fully paid and nonassessable and, except for
directors' qualifying shares, owned by a direct or indirect wholly-owned
Subsidiary of the Company, free and clear of any lien, pledge, security
interest, claim or other encumbrance ("LIENS"), except for those liens created
pursuant to the Credit Agreement or any Security Document (as such terms are
defined below). Except as set

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forth in Section 5.1(b) of the Company Disclosure Letter, there are no
preemptive or other outstanding rights, options, warrants, conversion rights,
stock appreciation rights, redemption rights, repurchase rights, agreements,
arrangements, calls, commitments or rights of any kind that obligate the Company
or any of its Subsidiaries to issue or sell any shares of capital stock or other
securities of the Company or any of its Subsidiaries or any securities or
obligations convertible or exchangeable into or exercisable for, or giving any
Person a right to subscribe for or acquire, any securities of the Company or any
of its Subsidiaries, and no securities or obligations evidencing such rights are
authorized, issued or outstanding. The Company does not have outstanding any
bonds, debentures, notes or other obligations the holders of which have the
right to vote (or convertible into or exercisable for securities having the
right to vote) with the shareholders of the Company on any matter ("VOTING
DEBT"). For purposes of this Agreement, (i) "CREDIT AGREEMENT" means that
certain Credit Agreement dated as of July 14, 1999, among GlobeNet
Communications Holdings Ltd., Toronto Dominion (Texas) Inc., as administrative
agent, and certain other parties, as amended; and (ii) "SECURITY DOCUMENT" has
the meaning provided in the Credit Agreement.

         (c) CORPORATE AUTHORITY; APPROVAL AND FAIRNESS. (i) The Company has all
requisite corporate power and authority and has taken all corporate action
necessary in order to execute, deliver and perform its obligations under this
Agreement and to consummate, subject only to approval of the Arrangement by a
majority in number representing 75% in value of the holders of the outstanding
Common Shares and approval of the Scheme of Arrangement by a majority in number
representing 75% in value of the holders of the outstanding Class B Shares (the
"COMPANY REQUISITE VOTE"), the Arrangement. This Agreement is a valid and
binding agreement of the Company enforceable against the Company in accordance
with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors' rights and to general equity principles (the "BANKRUPTCY
AND EQUITY EXCEPTION").

         (ii) The board of directors of the Company has unanimously approved the
Arrangement and the other transactions contemplated hereby, other than Mark
Pelson who abstained from voting on such matters. It is agreed and understood
that such opinion is for the benefit of the Company's Board of Directors and may
not be relied on by Parent.

         (d) GOVERNMENTAL FILINGS; NO VIOLATIONS. (i) Except as set forth in
Section 5.1(d) of the Company Disclosure Letter, no notices, reports or other
filings are required to be made by the Company with, nor are any consents,
registrations, approvals, permits or authorizations required to be obtained by
the Company from, any domestic or foreign governmental or regulatory authority,
agency, commission, body or other governmental entity ("GOVERNMENTAL ENTITY"),
in connection with the execution and delivery of this Agreement by the Company
and the consummation by the Company of the Arrangement and the other
transactions contemplated hereby and thereby.

                                       8
<PAGE>

         (ii) Except as provided in Section 5.1(d)(ii) of the Company Disclosure
Letter, the execution, delivery and performance of this Agreement by the Company
does not, and the consummation by the Company of the Arrangement and the other
transactions contemplated hereby will not, constitute or result in (A) a breach
or violation of, or a default under, the memorandum of association or bye-laws
of the Company or the comparable governing instruments of any of its
Subsidiaries, (B) a breach or violation of, or a default under, the acceleration
of any obligations or the creation of a Lien on the assets of the Company or any
of its Subsidiaries (with or without notice, lapse of time or both) pursuant to,
any agreement, lease, license, contract, note, mortgage, indenture, arrangement
or other obligation with a term of six or more months after the date hereof or
involving payments of $50,000 or more after the date hereof ("CONTRACTS")
binding upon the Company or any of its Subsidiaries or any Law (as defined in
Section 5.1(i)) or governmental or non-governmental permit or license to which
the Company or any of its Subsidiaries is subject or (C) any change in the
rights or obligations of any party under any of the Contracts. Section 5.1(d) of
the Company Disclosure Letter sets forth, among other things, a correct and
complete list of Contracts of the Company and its Subsidiaries pursuant to which
consents or waivers are or may be required prior to consummation of the
transactions contemplated by this Agreement.

         (e) COMPANY REPORTS; FINANCIAL STATEMENTS. The Company has delivered to
Parent each registration statement, report, proxy statement or information
statement prepared by it since December 31, 1999 (the "AUDIT DATE"), each in the
form (including exhibits, annexes and any amendments thereto) filed with the
Securities and Exchange Commission (the "SEC") (collectively, including any such
reports filed subsequent to the date hereof and as amended, the "COMPANY
REPORTS"). As of their respective dates (or, if amended, as of the date of such
amendment), the Company Reports did not, and any Company Reports filed with the
SEC subsequent to the date hereof will not, contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements made therein, in light of the circumstances in
which they were made, not misleading. Each of the consolidated balance sheets
included in or incorporated by reference into the Company Reports (including the
related notes and schedules) fairly presents, or will fairly present, the
consolidated financial position of the Company and its Subsidiaries as of its
date and each of the consolidated statements of shareholders' equity, of
operations and of cash flows included in or incorporated by reference into the
Company Reports (including any related notes and schedules) fairly presents, or
will fairly present, the results of operations, cash flows and shareholders'
equity, as the case may be, of the Company and its Subsidiaries for the periods
set forth therein (subject, in the case of unaudited statements, to notes and
normal year-end audit adjustments that will not be material in amount or
effect), in each case in accordance with generally accepted accounting
principles ("GAAP") consistently applied during the periods involved, except as
may be noted therein.

         (f) ABSENCE OF CERTAIN CHANGES. Except as provided in Section 5.1(f) of
the Company Disclosure Letter, since the Audit Date the Company and its
Subsidiaries

                                       9
<PAGE>

have conducted their respective businesses in all material respects, and have
not engaged in any material transaction other than according to, the ordinary
and usual course of such businesses and there has not been (i) any change in the
financial condition, properties, prospects, business or results of operations of
the Company and its Subsidiaries or any development or combination of
developments of which management of the Company has knowledge that, individually
or in the aggregate, has had or is reasonably likely to have a Material Adverse
Effect other than any change, development or combination of developments which
apply generally to the fiber-optic submarine cable business; (ii) any material
damage, destruction or other casualty loss with respect to any material asset or
property owned, leased or otherwise used by the Company or any of its
Subsidiaries, whether or not covered by insurance; (iii) any declaration,
setting aside or payment of any dividend or other distribution in cash, stock or
property in respect of the capital stock of the Company, except for dividends or
other distributions on its capital stock publicly announced prior to the date
hereof and except as expressly permitted hereby; (iv) any change by the Company
in accounting principles, practices or methods; (v) issued or sold any shares of
any class of its capital stock, or any securities convertible into or
exchangeable for any such shares, or issued, sold, granted or entered into any
subscriptions, options, warrants, conversion or other rights, agreements,
commitments, arrangements or understandings of any kind, contingently or
otherwise, to purchase or otherwise acquire any such shares or any securities
convertible into or exchangeable for any such shares; (vi) incurred any
indebtedness for borrowed money, issued or sold any debt securities or prepaid
any debt except for borrowings and repayments in the ordinary course of
business; (vii) assigned, mortgaged, pledged or otherwise subjected to any lien,
any of its assets, except assignments to any Subsidiary or in the ordinary
course of business; (viii) forgiven, canceled, compromised, waived or released
any debts, claims or rights, except for debts, claims and rights forgiven,
canceled, compromised, waived or released which are immaterial or in the
ordinary course of business consistent with past practice; (ix) except in the
ordinary course of business, paid any bonus to any director, officer, manager or
employee or granted to any director, officer, manager or employee, any other
increase in compensation in any form; (x) entered into, adopted or amended any
employment, consulting, retention, change-in-control, collective bargaining,
bonus or other incentive compensation, profit-sharing, health or other welfare,
stock option or other equity, pension, retirement, vacation, severance, deferred
compensation or other employment, compensation or benefit plan, policy,
agreement, trust, fund or arrangement for the benefit of any officer, director
or employee; (xi) amended its memorandum of association or bye-laws; (xii)
incurred, assumed, guaranteed or otherwise became, directly or indirectly liable
with respect to any liability or obligation (whether absolute, accrued,
contingent or otherwise and whether direct or indirect, or as guarantor or
otherwise with respect to any liability or obligation of any other Person) in
excess of (A) $100,000 in each case, other than purchase orders and payroll
obligations in the ordinary course of business, or (B) except in the ordinary
course of business $250,000 in the aggregate at any one time outstanding; (xiii)
sold any assets with a value in excess of $100,000 in each case or $250,000 in
the aggregate, other than in the ordinary course of business consistent with
past practice; or (xiv) instituted, settled or agreed to settle any litigation,
action or

                                       10
<PAGE>

proceeding before any court or government body, other than in the ordinary
course of business consistent with past practice. Since the Audit Date, there
has not been any increase in the compensation payable or that could become
payable by the Company or any of its Subsidiaries to officers or key employees
or any amendment of any of the Compensation and Benefit Plans (as defined in
Section 5.1(h)(i)) other than as provided in Section 5.1(f) of the Company
Disclosure Letter or increases or amendments in the ordinary course.

         (g) LITIGATION AND LIABILITIES. (i) Except as disclosed in Section
5.1(g) of the Company Disclosure Letter, as of the date of this Agreement there
are no civil, criminal or administrative actions, suits, claims, hearings,
investigations or proceedings ("ACTIONS") pending or, to the knowledge of the
officers of the Company, threatened against the Company or any of its Affiliates
and as of the Effective Time there will not be any civil, criminal or
administrative Actions pending or, to the knowledge of the officers of the
Company, threatened against the Company or any of its Affiliates that are
material to the Company. Neither the Company nor any of its Subsidiaries is
subject to any settlement or similar agreement with any Governmental Entity, or
to any order, judgment, decree, injunction or award of any Governmental Entity
that, individually or in the aggregate, could reasonably be expected to have or
result in a Material Adverse Effect.

         (ii) Neither the Company nor any of its Subsidiaries has any
liabilities or obligations of any nature, whether known, unknown, absolute,
accrued, contingent or otherwise and whether due or to become due, except (A) as
set forth in Section 5.1(g) of the Company Disclosure Letter, (B) as and to the
extent disclosed on and adequately reserved against in the balance sheet of the
Company as of the Audit Date, which are included in the Company Reports, or (C)
for liabilities and obligations that (I) were incurred after December 31, 1999
in the ordinary course of business and are not prohibited by this Agreement and
(II) individually and in the aggregate have not had a Material Adverse Effect
and could not reasonably be expected to have or result in a Material Adverse
Effect.

         (h) EMPLOYEE BENEFITS.

         (i) A copy of each bonus, deferred compensation, pension, retirement,
profit-sharing, thrift, savings, employee stock ownership, stock bonus, stock
purchase, restricted stock, stock option, employment, termination, severance,
compensation, medical, health or other plan, agreement, policy or arrangement
that covers employees, directors, former employees or former directors of the
Company and its Subsidiaries (the "COMPENSATION AND BENEFIT PLANS") and any
trust agreement or insurance contract forming a part of such Compensation and
Benefit Plans has been made available to Parent prior to the date hereof. The
Compensation and Benefit Plans are listed in Section 5.1(h) of the Company
Disclosure Letter and any "change of control" or similar provisions therein are
specifically identified in Section 5.1(h) of the Company Disclosure Letter.

                                       11
<PAGE>

         (ii) All Compensation and Benefit Plans are in substantial compliance
with all applicable law. None of the Compensation and Benefit Plans is subject
to the Employee Retirement Income Security Act of 1974, as amended ("ERISA"),
except as set forth in Section 5.1(b)(ii) of the Company Disclosure Letter.
Wherever required under applicable law or customary under applicable practice,
the Compensation and Benefit Plans are approved by the relevant taxation and
other governmental authorities such as to enable the Company, its Subsidiaries
and the beneficiaries under the Compensation and Benefits Plans and, in the case
of a Funded Benefit Plan (as defined below), the assets held for the purposes of
the Compensation and Benefits Plans, to enjoy the most favorable taxation status
possible, and, to the knowledge of the officers of the Company, there is no
ground on which such approval may be withdrawn or cease to apply. There is no
pending or, to the knowledge of the officers of the Company, threatened material
litigation relating to the Compensation and Benefit Plans.

         (iii) Neither the Company nor any entity which is considered one
employer with the Company under Section 4001 of ERISA has ever maintained or
contributed to any employee benefit plan subject to Title IV of ERISA. All
payments, deductions from wages, reports, returns and similar documents with
respect to the Compensation and Benefit Plan required to be filed with or paid
to any governmental authority or Compensation and Benefit Plan or distributed to
any Compensation and Benefit Plan participant have duly and timely filed, paid
or distributed.

         (iv) Each Compensation and Benefit Plan in or under which assets are
set aside in advance relating to the intended or promised benefits, other than a
"defined contribution plan" within the meaning of Section 3(34) of ERISA
("FUNDED BENEFIT PLAN") has been valued actuarially in the last three years
("VALUATION"). The last Valuation of each Funded Benefit Plan showed that the
Funded Benefit Plan was fully funded on the assumptions and methods adopted for
that Valuation. The assumptions and methods used in the last Valuation of each
Funded Benefit Plan were in accordance with applicable law and local practice
and were reasonable assumptions having regard to the nature and circumstances of
the Funded Benefit Plan.

         (v) In relation to a Compensation and Benefit Plan which is a Funded
Benefit Plan, all contributions and other payments due from the participating
employers and employees have been paid to the Compensation and Benefit Plan and
nothing has occurred or become known since the effective date of the Valuation
which might reasonably be expected to cause the result of an actuarial valuation
carried out at the date of this Agreement, adopting the same actuarial methods
and assumptions as were adopted for the purpose of the Valuation, to be
materially different from the result of the Valuation.

         (vi) In relation to a Compensation and Benefit Plan that is not a
Funded Benefit Plan, the Company or a Subsidiary maintains a book reserve in
respect of the Compensation and Benefit Plan to the extent required by
applicable law and generally accepted best local accounting practices and in any
event sufficient to provide all benefits under such Compensation and Benefit
Plan.

                                       12
<PAGE>

         (vii) Except for the Stock Plans and agreements set forth in Section
5.1(h) of the Company Disclosure Letter, the consummation of the Arrangement and
the other transactions contemplated by this Agreement will not (x) entitle any
employees of the Company or its Subsidiaries to severance pay, (y) accelerate
the time of payment or vesting or trigger any payment or funding (through a
grantor trust or otherwise) of compensation or benefits under, increase the
amount payable or trigger any other material obligation pursuant to, any of the
Compensation and Benefit Plans or (z) result in any breach or violation of, or a
default under, any of the Compensation and Benefit Plans.

         (i) COMPLIANCE WITH LAWS; PERMITS. (i) As of the date of this
Agreement, the businesses of each of the Company and its Subsidiaries have not
been, and are not being, conducted in violation of any federal, state, local or
foreign law, statute, ordinance, rule, regulation, judgment, order, injunction,
decree, arbitration award, agency requirement, license or permit of any
Governmental Entity (collectively, "LAWS") and as of the Effective Time, the
businesses of each of the Company and its Subsidiaries will not be conducted in
violation of any federal, state, local or foreign Laws except for any violation,
which individually or in the aggregate, would not be material to the Company.
Except as set forth in the Company Reports filed prior to the date hereof, no
investigation or review by any Governmental Entity with respect to the Company
or any of its Subsidiaries is pending or, to the knowledge of the officers of
the Company, threatened, nor has any Governmental Entity indicated an intention
to conduct the same. To the knowledge of the officers of the Company, no
material change is required in the Company's or any of its Subsidiaries'
processes, properties or procedures in connection with any Laws, and the Company
has not received any notice or communication of any material noncompliance with
any Laws that has not been cured as of the date hereof. Except as set forth in
Section 5.1(i) of the Company Disclosure Letter, as of the date of this
Agreement, the Company and its Subsidiaries each has all and as of the Effective
Time, the Company and its Subsidiaries each will have all permits, licenses,
franchises, variances, exemptions, orders and other governmental authorizations,
consents and approvals necessary to conduct its business as then conducted,
except where the failure to have any of the foregoing would not be material to
the Company.

         (ii) The Company and each of its Subsidiaries holds, and is qualified
and eligible to hold, all material licenses, permits and other authorizations
issued by the Federal Communications Commission (the "FCC") to such entity for
the operation of their respective businesses, all of which are set forth in
Section 5.1(i) of the Company Disclosure Letter (the "COMPANY FCC LICENSES").
The Company FCC Licenses are valid and in full force and effect and neither the
Company nor any of its Subsidiaries is or has been delinquent in payment on or
in default under any installment obligation owed to the United States Treasury
in connection with the Company FCC Licenses. As used herein, the term "full
force and effect" means that (A) the orders issuing the Company FCC Licenses
have become effective, (B) no stay of effectiveness of such orders has been
issued by the FCC, and (C) the Company FCC Licenses have not been invalidated by
any

                                       13
<PAGE>

subsequent published FCC action. All material reports and applications required
by the Communications Act of 1934, as amended (the "COMMUNICATIONS ACT"), or
required to be filed with the FCC by the Company or any of its Subsidiaries have
been filed and are accurate and complete in all material respects. The Company
and its Subsidiaries are, and have been, in compliance in all material respects
with, and the communications systems operated pursuant to the Company FCC
Licenses are and have been operated in compliance in all material respects with,
the Communications Act. There is not pending as of the date hereof any
application, petition, objection, pleading or proceeding with the FCC or any
public service commission or similar body having jurisdiction or authority over
the communications operations of the Company or any of its Subsidiaries which
questions the validity of or contests any Company FCC License or which presents
a substantial risk that, if accepted or granted, or concluded adversely, could
result in (as applicable) the revocation, cancellation, suspension, dismissal,
denial or any materially adverse modification of any Company FCC License or
imposition of any substantial fine or forfeiture against the Company or any of
its Subsidiaries except as set forth in Section 5.1(i) of the Company Disclosure
Letter. No fact is known to the Company or its Subsidiaries which if known by a
Governmental Entity of competent jurisdiction would present a substantial risk
that any Company FCC License could be revoked, cancelled, suspended or
materially adversely modified or that any substantial fine or forfeiture could
be imposed against the Company or any of its Subsidiaries.

         (iii) Each of the Company and its Subsidiaries has complied with the
United States Foreign Corrupt Practices Act and neither of them nor any Person
controlled by either of them, nor, to the knowledge of the officers of the
Company, any Person acting on behalf of any of the foregoing has directly or
indirectly offered or promised to transfer, or transferred or authorized the
transfer of, any money or thing of value to any governmental official, political
party or party official, or candidate for political office (or any other Person
offering all or a portion of such money or thing of value to any such official,
party or candidate) in order to cause or induce such person to (A) act or to
refrain from acting in his, her or its official capacity (B) use his, her or its
influence or (C) assist any such party or any of their affiliates in obtaining
or retaining business for or with, or directing business to, any other Person.

         (j) TAKEOVER STATUTES. No "fair price," "moratorium," "control share
acquisition" or other similar anti-takeover statute or regulation (each a
"TAKEOVER STATUTE") or any anti-takeover provision in the Company's memorandum
of association and bye-laws is, or at the Effective Time will be, applicable to
the Company, the Shares, the Arrangement or the other transactions contemplated
by this Agreement.

         (k) ENVIRONMENTAL MATTERS. Except as set forth in Section 5.1(k) of the
Company Disclosure Letter to the knowledge of the officers of the Company: (i)
the Company and its Subsidiaries have complied in all material respects at all
times with all applicable Environmental Laws; (ii) no property currently owned
or operated by the Company or any of its Subsidiaries (including soils,
groundwater, surface water, buildings or other structures) is contaminated with
any Hazardous Substance; (iii) no property

                                       14
<PAGE>

formerly owned or operated by the Company or any of its Subsidiaries was
contaminated with any Hazardous Substance during or prior to such period of
ownership or operation; (iv) neither the Company nor any of its Subsidiaries is
subject to liability for any Hazardous Substance disposal or contamination on
any third party property; (v) neither the Company nor any of its Subsidiaries
has been associated with any release or threat of release of any Hazardous
Substance; (vi) neither the Company nor any of its Subsidiaries has received any
written notice, demand, letter, claim or request for information alleging that
the Company or any of its Subsidiaries may be in violation of or subject to
liability under any Environmental Law; (vii) neither the Company nor any of its
Subsidiaries is subject to any order, decree, injunction or other arrangement
with any Governmental Entity or any indemnity or other agreement with any third
party relating to liability under any Environmental Law or relating to Hazardous
Substances; (vii) none of the properties contain any underground storage tanks,
asbestos-containing material, lead products, or polychlorinated biphenyls;
(viii) neither the Company nor any Subsidiary has engaged in any activities
involving the generation, use, handling or disposal of any Hazardous Substance.
(ix) there are no other circumstances or conditions involving the Company or any
of its Subsidiaries that could reasonably be expected to result in any claim,
liability, investigation, cost or restriction on the ownership, use, or transfer
of any property pursuant to any Environmental Law; and (x) the Company has
delivered to Parent copies of all environmental reports, studies, assessments,
sampling data and other environmental information in its possession relating to
Company or its Subsidiaries or their respective current and former properties or
operations.

         As used herein, the term "ENVIRONMENTAL LAW" means any federal, state,
local statute, law, regulation, order, decree, permit, authorization, common law
or agency requirement, in each case whether domestic or foreign, relating to:
(A) the protection, investigation or restoration of the environment, or natural
resources, (B) the handling, use, presence, disposal, release or threatened
release of any Hazardous Substance or (C) wetlands, pollution, contamination or
any injury or threat of injury to persons or property relating to any Hazardous
Substance.

         As used herein, the term "HAZARDOUS SUBSTANCE" means any substance that
is: (A) listed, classified or regulated pursuant to any Environmental Law; (B)
any petroleum product or by-product, asbestos-containing material,
lead-containing paint or plumbing, polychlorinated biphenyls, radioactive
material or radon; and (C) any other substance which may be the subject of
regulatory action by any Government Entity in connection with any Environmental
Law.

         (l) TAXES. Except as set forth in Section 5.1(l) of the Company
Disclosure Letter, the Company and each of its Subsidiaries (i) have prepared in
good faith and duly and timely filed (taking into account any extension of time
within which to file) all material Tax Returns (as defined below), including but
not limited to, treaty-based Tax Returns, required to be filed by any of them
and all such filed Tax Returns are complete and accurate in all material
respects; (ii) have paid all Taxes (as defined below) that are shown as due on
such filed Tax Returns; (iii) have paid over to the proper Governmental

                                       15
<PAGE>

Entity in a timely manner all material Taxes that the Company or any of its
Subsidiaries is obligated to withhold from amounts owing to any employee,
creditor or third party, to the extent due and payable; and (iv) as of the date
of this Agreement, have not waived any statute of limitations with respect to
Taxes or agreed to any extension of time with respect to a Tax assessment or
deficiency. As of the date hereof, there are not pending or, to the knowledge of
the executive officers of the Company threatened in writing, any audits,
examinations, investigations or other proceedings in respect of Taxes or Tax
matters. As of the date of this Agreement, the Company has made available to
Parent true and correct copies of all material income, franchise, capital and
similar Tax Returns filed by the Company and its Subsidiaries for all taxable
years or periods for which the relevant statute of limitations has not expired.
Neither the Company nor any of its Subsidiaries is a party to any Tax allocation
or sharing agreement, is or has been a member or an affiliated group filing
consolidated or combined Tax Returns (other than a group the common parent of
which is or was the Company) or otherwise has any tax liability for the Taxes of
any person (other than the Company and its Subsidiaries). No closing agreements,
private letter rulings, technical advice memoranda or similar agreements or
rulings have been entered into or issued by any taxing authority with respect to
the Company or any of its Subsidiaries. No liens for Taxes exist with respect to
any of the assets or properties of the Company or any of its Subsidiaries,
except for statutory liens for Taxes not yet due and payable or that are being
contested in good faith and reserved for in accordance with GAAP. No Tax is
required to be withheld pursuant to Section 116 of the Canadian ITA (as defined
herein) or the Laws of any Canadian province or local jurisdiction or any other
foreign jurisdictions as a result of the transfer contemplated by this
Agreement. To the knowledge of the officers of the Company, neither the Company
nor any of its Subsidiaries is as of the date hereof a "controlled foreign
corporation" within the meaning of Section 957(a) of the Code. Except as set
forth in Section 5.1(l) of the Company Disclosure Letter, none of the Company,
any of its Subsidiaries, or Parent will be obligated to make a payment to an
individual that would be a "parachute payment" to a "disqualified individual" as
those terms are defined in Section 280G of the Code (without regard to whether
such payment is reasonable compensation for personal services performed or to be
performed in the future) as a result of the transactions contemplated by this
Agreement.

         As used in this Agreement, (i) the term "TAX" (including, with
correlative meaning, the terms "TAXES", and "TAXABLE") includes all United
States federal, state and local, Canadian federal, provincial and local, and
other foreign income, profits, franchise, gross receipts, environmental, customs
duty, capital stock, severances, stamp, payroll, sales, employment,
unemployment, disability, use, property, withholding, excise, production, value
added, occupancy and other taxes, duties or assessments of any nature
whatsoever, together with all interest, penalties and additions imposed with
respect to such amounts and any interest in respect of such penalties and
additions, and (ii) the term "TAX RETURN" includes all returns and reports
(including elections, declarations, disclosures, schedules, estimates and
information returns) required to be supplied to a Tax authority relating to
Taxes.

                                       16
<PAGE>

         (m) LABOR MATTERS. Neither the Company nor any of its Subsidiaries is a
party to or otherwise bound by any collective bargaining agreement, contract or
other agreement or understanding with a labor union or labor organization, nor,
as of the date hereof, is the Company or any of its Subsidiaries the subject of
any material proceeding asserting that the Company or any of its Subsidiaries
has committed an unfair labor practice or is seeking to compel it to bargain
with any labor union or labor organization nor is there pending or, to the
knowledge of officers of the Company, threatened, nor has there been for the
past five years, any labor strike, dispute, walk-out, work stoppage, slow-down
or lockout involving the Company or any of its Subsidiaries. The Company has
previously made available to Parent correct and complete copies of all labor and
collective bargaining agreements, Contracts or other agreements or
understandings with a labor union or labor organization to which the Company or
any of its Subsidiaries is party or by which any of them are otherwise bound
(collectively, the "COMPANY LABOR AGREEMENTS"). The consummation of the
Arrangement and the other transactions contemplated by this Agreement will not
entitle any third party (including any labor union or labor organization) to any
payments under any of the Company Labor Agreements.

         (n) INSURANCE. All material fire and casualty, general liability,
business interruption, product liability, and sprinkler and water damage
insurance policies maintained by the Company or any of its Subsidiaries are with
reputable insurance carriers, provide customary coverage for all normal risks
incident to the business of the Company and its Subsidiaries and their
respective properties and assets, and are in character and amount at least
equivalent to that carried by persons engaged in similar businesses and subject
to the same or similar perils or hazards.

         (o) CONTRACTS. (i) Section 5.1(o) of the Company Disclosure Letter
contains a complete and correct list, as of the date hereof, of all Contracts
of the Company and its Subsidiaries. The Company and its Subsidiaries have
delivered to Parent complete and correct copies of all written Contracts, and
accurate descriptions of all material terms of all oral Contracts, set forth
or required to be set forth in Section 5.1(o) of the Company Disclosure
Letter.

         (ii) All Contracts of the Company and its Subsidiaries are legal,
valid, binding, in full force and effect and enforceable against the
counter-party thereto in accordance with and subject to the terms of the
Contracts, subject to the Bankruptcy and Equity Exception. Except as set forth
in Section 5.1(o) of the Company Disclosure Letter, there does not exist under
any Contract any violation, breach or event of default, or event or condition
that, after notice or lapse of time or both, would constitute a violation,
breach or event of default thereunder, on the part of the Company, its
Subsidiaries or any Affiliate of either, or, to the knowledge of the Company,
any other Person, other than such violations, breaches, events of default, or
events or conditions that, individually and in the aggregate, could not
reasonably be expected to have or result in a Material Adverse Effect.

         (p) INTELLECTUAL PROPERTY. (i) Except as set forth in Section 5.1(p) of
the Company Disclosure Letter, the Company and/or each of its Subsidiaries owns,
or is

                                       17
<PAGE>

licensed or otherwise possesses legally sufficient rights to use all patents,
trademarks, trade names, service marks, copyrights, and any applications
therefor, technology, know-how, computer software programs or applications, and
tangible or intangible proprietary information or materials that are used in and
material to the business of the Company and its Subsidiaries as currently
conducted, and to the knowledge of the executive officers of the Company all
patents, trademarks, trade names, service marks and copyrights held by the
Company and/or its Subsidiaries are valid and subsisting.

         (ii) Except as set forth in Section 5.1(p) of the Company Disclosure
Letter:

                  (A) The Company is not, nor will it be as a result of the
execution and delivery of this Agreement or the performance of its obligations
hereunder, in violation of any licenses, sublicenses and other agreements as to
which the Company is a party and pursuant to which the Company is authorized to
use any third-party patents, trademarks, service marks, copyrights, trade
secrets or computer software (collectively, "THIRD-PARTY INTELLECTUAL PROPERTY
RIGHTS");

                  (B) as of the date of this Agreement, no claims with respect
to (I) the patents, registered and material unregistered trademarks and service
marks, registered copyrights, trade names, and any applications therefor, trade
secrets or computer software owned by the Company or any of its Subsidiaries
(collectively, the "COMPANY INTELLECTUAL PROPERTY RIGHTS"); or (II) Third-Party
Intellectual Property Rights are currently pending or, to the knowledge of the
officers of the Company, are threatened by any Person and as of the Effective
Time, no claims with respect to (I) or (II) will be pending or, to the knowledge
of the officers of the Company threatened by any Person, that if resolved
against the Company would be material to the Company; and

                  (C) as of the date of this Agreement, the officers of the
Company do not know of any valid grounds for any bona fide claims (I) to the
effect that the conduct of the business as currently conducted by the Company or
any of its Subsidiaries, infringes on any copyright, patent, trademark, service
mark or trade secret of any Person; (II) against the use by the Company or any
of its Subsidiaries of any Company Intellectual Property Right or Third-Party
Intellectual Property Right used in the business of the Company or any of its
Subsidiaries as currently conducted or as proposed to be conducted; (III)
challenging the ownership, validity or enforceability of any of the Company
Intellectual Property Rights; or (IV) challenging the license or legally
enforceable right to use of the Third-Party Intellectual Rights by the Company
or any of its Subsidiaries and as of the Effective Time, the officers of the
Company do not know of any valid grounds for any bona fide claims with respect
to (I), (II) or (III) which if resolved against the Company would be material to
the Company.

         (q) BROKERS AND FINDERS. Neither the Company nor any of its officers,
directors or employees has employed any broker or finder or incurred any
liability for any brokerage fees, commissions or finders, fees in connection
with the Arrangement or the

                                       18
<PAGE>

other transactions contemplated in this Agreement except, as set forth in
Section 5.1(q) of the Company Disclosure Letter, that the Company has employed
TD Securities Inc. as its financial advisor, the arrangements with which have
been disclosed to Parent prior to the date hereof.

         5.2. REPRESENTATIONS AND WARRANTIES OF PARENT. Except as set forth in
the corresponding sections or subsections of the disclosure letter delivered to
the Company by Parent on or prior to entering into this Agreement (the "PARENT
DISCLOSURE LETTER"), Parent hereby represents and warrants to the Company that:

         (a) CAPITALIZATION OF PARENT. CAPITAL STRUCTURE. As of the date of this
Agreement, the authorized capital stock of Parent consists of: (i) an unlimited
number of shares of Class A Non-Voting Shares, of which 176,713,200 shares were
outstanding on the close of business on March 8, 2000; (ii) an unlimited number
of Class B Subordinate Voting Shares, of which 41,314,800 shares were
outstanding on the close of business on March 8, 2000; (iii) an unlimited number
of Class C Multiple Voting Shares, of which 40,920,000 shares were outstanding
on the close of business on March 8, 2000; (iv) 100,000,000,000 Series A
Non-Voting Preferred Shares, of which 75,475,656 shares were outstanding on the
close of business on March 8, 2000; (v) 100,000,000,000 Series B Subordinate
Voting Convertible Preferred Shares, of which no shares were outstanding on the
close of business on March 8, 2000; and (vi) 45,000,000 Class C Redeemable
Preferred Shares, of which no shares were outstanding on the close of business
on March 8, 2000 (collectively, items (i) - (vi) are the "EXISTING PARENT
CAPITAL STOCK". Subject to Section 6.15, at the Effective Time, the authorized
capital stock of Parent will consist of (i) an unlimited number of shares of
Parent Class A Voting Stock; (ii) an unlimited number of Parent Class B
Subordinate Voting Shares, of which 20,460,000,000 shares will be issued; (iii)
an unlimited number of shares of Parent Class C Non-Voting Participating Shares,
of which 40,920,000 shares will be issued; (iv) an unlimited number of Class D
Multiple Voting Shares; (v) an unlimited number of Class E Non-Voting Shares;
and (vi) an unlimited number of Preferred Shares issuable in series of which no
shares will be issued and outstanding (collectively, items (i)-(vi) are the "NEW
PARENT CAPITAL STOCK").

         All of the outstanding Existing Parent Capital Stock have been duly
authorized and are validly issued, fully paid and nonassessable. Except as set
forth in Section 5.2(a) of the Parent Disclosure Letter, Parent has no Existing
Parent Capital Stock reserved for issuance, except that, as of March 8, 2000,
there were 35,566,504 shares of Existing Parent Capital Stock reserved for
issuance pursuant to Parent's 1998 Long Term Incentive and Share Award Plan (the
"PARENT STOCK PLAN"). Except as set forth in Section 5.2(a) of the Parent
Disclosure Letter, no Person has any rights to require registration by Parent of
the Parent Class A Stock and there are no preemptive or other outstanding
rights, options, warrants, conversion rights, stock appreciation rights,
redemption rights, repurchase rights, agreements, arrangements, calls,
commitments or rights of any kind that obligate Parent or any of its
Subsidiaries to issue or sell any shares of capital stock or other securities of
Parent or any securities or obligations convertible or exchangeable into or
exercisable for, or giving any Person a right to subscribe for or acquire, any
securities of

                                       19
<PAGE>

the Parent, and no securities or obligations evidencing such rights are
authorized, issued or outstanding.

         (b) ORGANIZATION, GOOD STANDING AND QUALIFICATION. Each of Parent and
its Subsidiaries is a corporation duly organized, validly existing and in good
standing under the laws of its respective jurisdiction of organization and has
all requisite corporate or similar power and authority to own and operate its
properties and assets and to carry on its business as presently conducted.

         (c) CORPORATE AUTHORITY.

         (i) Parent has all requisite corporate power and authority and has
taken all corporate action necessary in order to execute, deliver and perform
its obligations under this Agreement and to consummate the Arrangement subject
to approval of the Capital Reorganization (as defined herein) by the affirmative
vote of at least two-thirds of the votes cast by the holders of each class of
Existing Parent Capital Stock entitled to vote, voting separately, or by written
consent in lieu of such vote of each class of Existing Parent Capital Stock
entitled to vote. This Agreement is a valid and binding agreement of Parent,
enforceable against Parent in accordance with its terms, subject to the
Bankruptcy and Equity Exception.

         (ii) The Parent Class A Stock, when issued in the Scheme of
Arrangement, will be validly issued, fully paid and nonassessable, and no
shareholder of Parent will have any preemptive right of subscription or purchase
in respect thereof. The issuance of the Parent Class A Stock to the shareholders
of the Company will be exempt from registration under the Securities Act and
applicable Bermuda, United Kingdom, Italy and Cayman Islands securities laws and
will be exempt from registration and prospectus requirements under applicable
Canadian securities laws and registered or exempt from registration under any
applicable state securities or "blue sky" laws.

         (d) GOVERNMENTAL FILINGS; NO VIOLATIONS. (i) Except as set forth in
Section 5.2(d) of the Parent Disclosure Letter, no notices, reports or other
filings are required to be made by Parent with, nor are any consents,
registrations, approvals, permits or authorizations required to be obtained by
Parent from, any Governmental Entity, in connection with the execution and
delivery of this Agreement by Parent and the consummation by Parent of the
Arrangement and the other transactions contemplated hereby.

         (ii) Except as set forth in Section 5.2(d) of the Parent Disclosure
Letter, the execution, delivery and performance of this Agreement by Parent does
not, and the consummation by Parent of the Arrangement and the other
transactions contemplated hereby (including the Capital Reorganization and the
issuance of Parent Class A Stock contemplated by Section 4.1) will not,
constitute or result in (A) a breach or violation of, or a default under, the
certificate or bye-laws of Parent or the comparable governing instruments of any
of its Subsidiaries, (B) a breach or violation of, or a default under, the

                                       20
<PAGE>

acceleration of any obligations or the creation of a Lien on the assets of
Parent or any of its Subsidiaries (with or without notice, lapse of time or
both) pursuant to, any Contract binding upon Parent or any of its Subsidiaries
or any Law or governmental or non-governmental permit or license to which Parent
or any of its Subsidiaries is subject or (C) any change in the rights or
obligations of any party under any of the Contracts, except, in the case of
clause (B) or (C) above, for breaches, violations, defaults, accelerations,
creations or changes that, individually or in the aggregate, is not reasonably
likely to have a Parent Material Adverse Effect (as defined herein) or prevent
or materially impair the ability of Parent to consummate the transactions
contemplated by this Agreement.

         (e) PARENT REPORTS; FINANCIAL STATEMENTS. Parent will deliver to the
Company a copy of its Form F-1 Registration Statement (the "FORM F-1"), to be
filed the week of March 13, 2000 (the "PARENT AUDIT DATE"), in the form
(including exhibits, annexes and any amendments thereto) filed with the SEC. As
of its date of filing, the Form F-1 and any registration statement, report,
proxy statement or information statement filed with the SEC subsequent to the
date hereof (collectively, the "PARENT REPORTS"), will not, contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements made therein, in light of the
circumstances in which they were made, not misleading. Each of the consolidated
balance sheets included in the Form F-1 (including the related notes and
schedules) fairly presents, or will fairly present, the consolidated financial
position of Parent and its Subsidiaries as of its date and each of the
consolidated statements of income, changes in shareholders equity and cash flows
included in the Form F-1 (including any related notes and schedules) fairly
presents, or will fairly present, or will fairly present, the results of
operations, cash flows and changes in shareholders' equity, as the case may be,
of Parent and its Subsidiaries for the periods set forth therein (subject, in
the case of unaudited statements, to notes and normal year-end audit adjustments
that will not be material in amount or effect), in each case in accordance with
GAAP consistently applied during the periods involved, except as may be noted
therein.

         (f) ABSENCE OF CERTAIN CHANGES. Since the Audit Date Parent and its
Subsidiaries have conducted their respective businesses in all material respects
in, and have not engaged in any material transaction other than according to the
ordinary and usual course of such businesses and there has not been any change
in the financial condition, properties, business or results of operations of
Parent and its Subsidiaries or any development or combination of developments of
which the officers of Parent has knowledge that, individually or in the
aggregate, has had or is reasonably likely to have a Parent Material Adverse
Effect (as defined below) or prevent or materially impair the ability of Parent
to consummate the transactions contemplated by this Agreement. "PARENT MATERIAL
ADVERSE EFFECT" means a material adverse effect on the financial condition,
properties, business or results of operations of Parent and its Subsidiaries
taken as a whole.

         (g) LITIGATION AND LIABILITIES. (i) Except as disclosed in Section
5.2(g) of the Parent Disclosure Letter, there are no civil, criminal or
administrative Actions pending or, to the knowledge of the officers of Parent,
threatened against Parent or any of

                                       21
<PAGE>

its Affiliates that, individually or in the aggregate, could reasonably be
expected to have a Parent Material Adverse Effect. Neither Parent nor any of its
Subsidiaries is subject to any settlement or similar agreement with any
Governmental Entity, or to any order, judgment, decree, injunction or award of
any Governmental Entity that, individually or in the aggregate, could reasonably
be expected to have or result in a Parent Material Adverse Effect.

         (ii) Neither Parent nor any of its Subsidiaries has any liabilities or
obligations of any nature, whether known, unknown, absolute, accrued, contingent
or otherwise and whether due or to become due, except (A) as set forth in
Section 5.2(g) of the Parent Disclosure Letter, (B) as and to the extent
disclosed on and adequately reserved against in the balance sheet of Parent as
of the Audit Date, which are included in the Parent Reports, or (C) for
liabilities and obligations that (I) were incurred after Parent Audit Date in
the ordinary course of business and are not prohibited by this Agreement and
(II) individually and in the aggregate have not had a Parent Material Adverse
Effect and could not reasonably be expected to have or result in a Parent
Material Adverse Effect. Since Parent Audit Date there has not occurred or come
to exist any Parent Material Adverse Effect or any event, occurrence, fact,
condition, change, development or effect that, individually or in the aggregate,
could reasonably be expected to become or result in a Parent Material Adverse
Effect.

         (h) BROKERS AND FINDERS. Neither Parent nor any of its officers,
directors or employees has employed any broker or finder or incurred any
liability for any brokerage fees, commissions or finders, fees in connection
with the Arrangement or the other transactions contemplated by this Agreement.

         (i) TELECOMMUNICATIONS ACT (CANADA). Upon the consummation by Parent of
the Arrangement and the other transactions contemplated by this Agreement
(including the issuance of Parent Class A Stock pursuant to Section 4.1), Parent
and its Subsidiaries will be in compliance with or will not be required to
comply with (a) with the provisions of section 16 of the Telecommunications Act
(Canada) and (b) with the provisions of the Canadian Telecommunications Common
Carrier Ownership and Control Regulations enacted pursuant to the
Telecommunications Act (Canada).

         (j) TAXES. Parent does not expect to be a "passive foreign investment
company" for U.S. federal income tax purposes for the 2000 taxable year. Neither
Parent nor any "related person" (within the meaning of Treas. Reg. '
1.368-1(e)(3)) owns directly or indirectly, or has in the last five years owned
directly or indirectly, any capital stock of the Company, and neither Parent nor
any such related person will acquire any additional capital stock of the Company
prior to the Arrangement.

                                       22
<PAGE>

                                   ARTICLE VI.

                                    Covenants

     6.1. INTERIM OPERATIONS. The Company covenants and agrees as to itself and
its Subsidiaries that, after the date hereof and prior to the Effective Time
(unless Parent shall otherwise approve in writing or except as otherwise
expressly contemplated by this Agreement or except as expressly provided
pursuant to a business plan of the Company approved by Parent, which approval
shall not be unreasonably withheld; IT BEING UNDERSTOOD that the business plans
of the Company attached hereto as Exhibit D have been agreed to by Parent and
the Company with respect to the operations of the Company covered thereby):

     (a) the business of it and its Subsidiaries shall be conducted in the
ordinary and usual course and, to the extent consistent therewith, it and its
Subsidiaries shall use their respective reasonable best efforts to preserve its
business organization intact and maintain its existing relations and goodwill
with customers, suppliers, distributors, creditors, lessors, employees and
business associates;

     (b) it shall not (i) except as required pursuant to the Credit Agreement or
any Security Document, issue, sell, pledge, dispose of or encumber any capital
stock owned by it in any of its Subsidiaries; (ii) amend its memorandum of
association or bye-laws; (iii) split, combine or reclassify its outstanding
shares; (iv) declare, set aside or pay any dividend payable in cash, shares or
property in respect of any shares other than dividends from its direct or
indirect wholly owned Subsidiaries; or (v) except as required pursuant to the
Credit Agreement or any Security Document, repurchase, redeem or otherwise
acquire, except in connection with the Stock Plan, or permit any of its
Subsidiaries to purchase or otherwise acquire, any shares or any securities
convertible into or exchangeable or exercisable for any shares;

     (c) except as required pursuant to the Credit Agreement or any Security
Document, neither it nor any of its Subsidiaries shall (i) transfer, issue,
sell, pledge, mortgage, dispose of or encumber any shares of, or securities
convertible into or exchangeable or exercisable for, or options, warrants,
calls, commitments or rights of any kind to acquire, any shares of its capital
stock of any class or any Voting Debt or any other property or assets (other
than Shares issuable pursuant to options outstanding on the date hereof under
the Stock Plans or disclosed in Section 5.1(b)(i) of the Company Disclosure
Schedule); (ii) transfer, lease, license, guarantee, sell, mortgage, pledge,
dispose of or encumber any other property or assets (including capital stock of
any of its Subsidiaries) or incur or modify any material indebtedness or other
liability; or (iii) make or authorize or commit for any capital expenditures
other than in the ordinary and usual course of business or, by any means, make
any acquisition of, or investment in, assets or stock of or other interest in,
any other Person or entity in excess of $20,000 or which has been approved in
writing by Scott Lyons, which approval (which shall not be unreasonably
withheld) shall be granted or denied within two business days after a request in
writing to make such an

                                       23

<PAGE>

acquisition or investment has been delivered to Scott Lyons and Tara Ferris;
provided such written request sets forth sufficient information for Scott Lyons
to make an informed business decision with respect thereto;

     (d) neither it nor any of its Subsidiaries shall hire any new employee,
terminate, establish, adopt, enter into, make any new grants or awards under,
amend or otherwise modify, any Compensation and Benefit Plans or increase the
salary, wage, bonus or other compensation of any employees unless any such
action has been approved in writing by Vanessa Wittman, which approval (which
shall not be unreasonably withheld) shall be granted or denied within two
business days after a request in writing to take any such action has been
delivered to Vanessa Wittman and Tara Ferris; provided such written request sets
forth sufficient information for Vanessa Wittman to make an informed business
decision with respect thereto;

     (e) neither it nor any of its Subsidiaries shall settle or compromise any
material claims or litigation or, enter into any Contract involving more than
$50,000 in payments or for a term of six or more months or modify, amend or
terminate any of its material Contracts or waive, release or assign any material
rights or claims unless any such action has been approved in writing by Scott
Lyons, which approval (which shall not be unreasonably withheld) shall be
granted or denied within two business days after a request in writing to take
such action has been delivered to Scott Lyons and Tara Ferris, provided that
such written requests sets forth sufficient information for Scott Lyons to make
an informed business decision with respect thereto;

     (f) neither it nor any of its Subsidiaries shall permit any insurance
policy naming it as a beneficiary or loss-payable payee to be cancelled or
terminated except in the ordinary and usual course of business unless any such
action has been approved in writing by Paul Townsend, which approval shall be
granted or denied within two business days after a request in writing to take
any such action has been delivered to Paul Townsend and Tara Ferris; provided
such written request sets forth sufficient information for Paul Townsend to make
an informed business decision with respect thereto;

     (g) neither it nor any of its Subsidiaries shall settle any material audit,
make or change any material Tax election, file any amended Tax Return or take
any other action with respect to Taxes that is outside of the ordinary course of
business or inconsistent with past practice;

     (h) neither it nor any of its Subsidiaries shall take any action or omit to
take any action that would cause any of its representations and warranties
herein to become untrue in any material respect; and

     (i) neither it nor any of its Subsidiaries will authorize or enter into an
agreement to do any of the foregoing.

                                       24

<PAGE>

     6.2. ACQUISITION PROPOSALS. The Company agrees that neither it nor any of
its Subsidiaries nor any of the officers and directors of it or its Subsidiaries
shall, and that it shall direct and use its best efforts to cause its and its
Subsidiaries' employees, agents and representatives (including any investment
banker, attorney or accountant retained by it or any of its Subsidiaries) not
to, directly or indirectly, initiate, solicit, encourage or otherwise facilitate
any inquiries or the making of any proposal or offer with respect to a plan of
arrangement, merger, amalgamation, reorganization, share exchange, consolidation
or similar transaction involving, or any purchase of all or 15% or more of the
assets or any equity securities of, it or any of its Subsidiaries (any such
proposal or offer being hereinafter referred to as an "ACQUISITION PROPOSAL").
The Company further agrees that neither it nor any of its Subsidiaries nor any
of the officers and directors of it or its Subsidiaries shall, and that it shall
direct and use its best efforts to cause its and its Subsidiaries' employees,
agents and representatives (including any investment banker, attorney or
accountant retained by it or any of its Subsidiaries) not to, directly or
indirectly, engage in any negotiations concerning, or provide any confidential
information or data to, or have any discussions with, any Person relating to an
Acquisition Proposal, or otherwise facilitate any effort or attempt to make or
implement an Acquisition Proposal; provided, however, that nothing contained in
this Agreement shall prevent the Company or its Board of Directors from
complying with Rule 14e-2 promulgated under the Securities Exchange Act of 1934,
as amended (the "EXCHANGE ACT") with regard to an Acquisition Proposal. The
Company agrees that it will immediately cease and cause to be terminated any
existing activities, discussions or negotiations with any parties conducted
heretofore with respect to any Acquisitions Proposal. The Company agrees that it
will take the necessary steps to promptly inform the individuals or entities
referred to in the first sentence hereof of the obligations undertaken in this
Section 6.2 and in the Confidentiality Agreement (as defined in Section 9.7).
The Company agrees that it will notify Parent immediately if any such inquiries,
proposals or offers are received by, any such information is requested from, or
any such discussions or negotiations are sought to be initiated or continued
with, any of its representatives indicating, in connection with such notice, the
name of such Person and the material terms and conditions of any proposals or
offers and thereafter shall keep Parent informed, on a current basis, on the
status and terms of any such proposals or offers and the status of any such
discussions or negotiations. The Company also agrees that it will promptly
request each Person that has heretofore executed a confidentiality agreement in
connection with its consideration of acquiring it or any of its Subsidiaries to
return all confidential information heretofore furnished to such Person by or on
behalf of it or any of its Subsidiaries.

     6.3. INFORMATION SUPPLIED. The Company and Parent each agrees, as to itself
and its Subsidiaries, that none of the information supplied or to be supplied by
it or its Subsidiaries for inclusion in the Company Proxy Statement (as defined
below) will at the date of mailing to shareholders and at the times of the
meeting of shareholders of the Company to be held in connection with the
Arrangement, contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were

                                       25

<PAGE>

made, not misleading. The Company will ensure that the Company Proxy Statement
complies with all applicable Laws. The "COMPANY PROXY STATEMENT" shall mean the
notice of the special meeting of holders of Shares convened pursuant to an order
of the Bermuda Court to be sent to holders of Shares to consider this Agreement
and the Arrangement and the accompanying explanatory statement in connection
with such meeting, as supplemented or otherwise modified.

     6.4. IMPLEMENTATION STEPS. The Company will take, in accordance with
applicable Law and its memorandum of association and bye-laws, all action
necessary to (i) apply in a manner acceptable to Parent, under Section 99 of the
Bermuda Act for the "INTERIM ORDER" (as defined in the Scheme of Arrangement),
and thereafter proceed with and use reasonable best efforts to obtain the
Interim Order, (ii) subject to obtaining the Interim Order, convene a meeting of
holders of Shares (the "COMPANY SHAREHOLDERS MEETING") as promptly as
practicable to consider and vote upon the approval of the Arrangement, (iii)
subject to obtaining approval of the Company's shareholders as required by the
Bermuda Act, use reasonable best efforts to pursue the application to the
Bermuda Court for the Final Order, and (iv) subject to obtaining the Final Order
and the satisfaction or waiver of the other conditions contained in this
Agreement, send to the Bermuda Registrar, for registration by the Bermuda
Registrar, the Final Order of the Bermuda Court and such other documents as may
be required in connection therewith under the Bermuda Act to give effect to the
Arrangement. The Company's board of directors shall recommend approval of this
Agreement and the Arrangement and shall take all lawful action to solicit such
approval, it being understood that the Company's board of directors may withdraw
such approval if it determines in good faith, after consultation with and based
on the advice of its outside counsel, that it is necessary to do so in order to
comply with its fiduciary duties to the shareholders of the Company, provided
that in no event may the Company's board of directors fail to convene the
Company Shareholders Meeting.

     6.5. FILINGS; OTHER ACTIONS; NOTIFICATION. (a) The Company shall promptly
prepare the Company Proxy Statement. Parent shall use its reasonable best
efforts to obtain prior to the Effective Date all necessary U.S. federal
securities law, U.S. state securities law or "blue sky" permits and approvals
required in connection with the Arrangement and to consummate the other
transactions contemplated by this Agreement and will pay all expenses incident
thereto.

     (b) Parent and the Company shall use reasonable best efforts to prepare all
documents and obtain all orders required from the applicable Canadian securities
authorities to permit (i) the issuance of Parent Class A Stock pursuant to the
Arrangement in accordance with the applicable Canadian securities laws and the
resale thereof without any hold period or requirement that Parent be a
"reporting issuer" under applicable Canadian securities laws for any particular
period, and (ii) the issuance of the Parent Class A Stock issued from time to
time upon the exercise of the Company Options.

     (c) The Company and Parent shall cooperate with each other and use (and
shall cause their respective Subsidiaries to use) their respective reasonable
best efforts

                                       26
<PAGE>

to take or cause to be taken all actions, and do or cause to be done all things,
necessary, proper or advisable on its part under this Agreement and applicable
Laws to consummate and make effective the Arrangement and the other transactions
contemplated by this Agreement as soon as practicable, including preparing and
filing as promptly as practicable all documentation to effect all necessary
notices, reports and other filings and to obtain as promptly as practicable all
consents, registrations, approvals, permits and authorizations necessary or
advisable to be obtained from any third party and/or any Governmental Entity in
order to consummate the Arrangement or any of the other transactions
contemplated by this Agreement; provided, however, that nothing in this Section
6.5 shall require, or be construed to require, Parent to proffer to, or agree
to, sell or hold separate and agree to sell, before or after the Effective Time,
any assets, businesses, or interest in any assets or businesses of Parent, the
Company or any of their respective Affiliates (or to consent to any sale, or
agreement to sell, by the Company of any of its assets or businesses) or to
agree to any material changes or restriction in the operations of any such
assets or businesses. Subject to applicable laws relating to the exchange of
information, Parent and the Company shall have the right to review in advance,
and to the extent practicable each will consult the other on, all the
information relating to Parent or the Company, as the case may be, and any of
their respective Subsidiaries, that appear in any filing made with, or written
materials submitted to, any third party and/or any Governmental Entity in
connection with the Arrangement and the other transactions contemplated by this
Agreement. In exercising the foregoing right, each of the Company and Parent
shall act reasonably and as promptly as practicable.

     (d) As promptly as practicable after the execution and delivery of this
Agreement, Parent and the Company shall prepare all appropriate applications for
FCC approval, and such other documents as may be required, with respect to the
transfer of control of the Company to Parent (collectively, the "FCC
APPLICATIONS"). Not later than the tenth business day following execution and
delivery of this Agreement, the Company and Parent will exchange with each other
their respective completed portions of the FCC Applications. Not later than the
fifteenth business day following the execution and delivery of this Agreement,
the Company and Parent shall file, or cause to be filed, the FCC Applications.
No party hereto shall knowingly take, or fail to take, any action if the intent
or reasonably anticipated consequence of such action or failure to act is, or
would be, to cause the FCC not to grant approval of the FCC Applications or
delay either such approval or the consummation of the transfer of control of the
Company. Parent and the Company shall each pay one-half (1/2) of any FCC fees,
if applicable, in connection with the filing or granting of approval of the FCC
Applications. Each of Parent and the Company shall bear its own expenses in
connection with the preparation and prosecution of the FCC Applications, Parent
and the Company shall each use all commercially reasonable efforts to prosecute
the FCC Applications in good faith and with due diligence before the FCC and in
connection therewith shall take such action or actions as may be necessary or
reasonably required in connection with the FCC Applications.

                                       27
<PAGE>

     (e) The Company and Parent each shall, upon request by the other, furnish
the other with all information concerning itself, its Subsidiaries, directors,
officers and shareholders and such other matters as may be reasonably necessary
or advisable in connection with the Company Proxy Statement or any other
statement, filing, notice or application made by or on behalf of Parent, the
Company or any of their respective Subsidiaries to any third party and/or any
Governmental Entity in connection with the Arrangement and the transactions
contemplated by this Agreement.

     (f) The Company and Parent each shall keep the other apprised of the status
of matters relating to completion of the transactions contemplated hereby,
including promptly furnishing the other with copies of notices or other
communications received by Parent or the Company, as the case may be, or any of
its Subsidiaries, from any third party and/or any Governmental Entity with
respect to the Arrangement and the other transactions contemplated by this
Agreement. The Company shall give prompt notice to the Parent of any change that
is reasonably likely to result in a Material Adverse Effect.

     6.6. TAXATION. Parent agrees to enter into an election under Section 85 of
the Income Tax Act, Canada ("CANADIAN ITA") whereby it would jointly file a Form
T2057 or T2058 with any of the Company's shareholders resident in Canada for
purposes of the Canadian ITA that so desire at an amount as determined by the
particular shareholder, subject to the limitations set out in the Canadian ITA.

     6.7. ACCESS. Upon reasonable notice, and except as may otherwise be
required by applicable law, the Company shall (and shall cause its Subsidiaries
to) afford the Parent's officers, employees, counsel, accountants and other
authorized representatives ("REPRESENTATIVES") reasonable access, during normal
business hours throughout the period prior to the Effective Time, to its
properties, books, contracts and records and, during such period, each shall
(and shall cause its Subsidiaries to) furnish promptly to the other all
information concerning its business, properties and personnel as may reasonably
be requested, provided that no investigation pursuant to this Section shall
affect or be deemed to modify any representation or warranty made by the Company
and provided, further, that the foregoing shall not require the Company to
permit any inspection, or to disclose any information, that in the reasonable
judgment of the Company would result in the disclosure of any trade secrets of
third parties or violate any of its obligations with respect to confidentiality
if the Company shall have used reasonable best efforts to obtain the consent of
such third party to such inspection or disclosure. All requests for information
made pursuant to this Section shall be directed to an executive officer of the
Company or Parent, as the case may be, or such Person as may be designated by
either of its officers, as the case may be. All such information shall be
governed by the terms of the Confidentiality Agreement.

     6.8. AFFILIATES. Prior to the date of the Company Shareholders Meeting,
Parent shall deliver to the Company a list of names and addresses of those
Persons who will be, in the opinion of Parent, as of the time of the Company
Shareholders Meeting referred to in Section 6.4, "affiliates" of the Company
within the meaning of Rule 145

                                       28
<PAGE>

under the Securities Act. The Company shall provide to Parent such information
and documents as Parent shall reasonably request for purposes of preparing such
list. There shall be added to such list the names and addresses of any other
Person subsequently identified by either Parent or the Company as a Person who
may be deemed to be such an affiliate of the Company; provided, however, that no
such Person identified by Parent shall be added to the list of affiliates of the
Company if Parent shall receive from the Company, on or before the date of the
Company Shareholders Meeting, an opinion of counsel reasonably satisfactory to
Parent to the effect that such Person is not such an affiliate. The Company
shall exercise its reasonable best efforts to deliver or cause to be delivered
to Parent, prior to the date of the Company Shareholders Meeting, from each
affiliate of the Company identified in the foregoing list (as the same may be
supplemented as aforesaid), a letter dated as of the Closing Date substantially
in the form attached as Exhibit A (the "AFFILIATES LETTER"). The certificates
representing Parent Class A Stock received by such affiliates shall bear a
customary legend regarding applicable Securities Act restrictions and the
provisions of this Section.

     6.9. STOCK EXCHANGE LISTING AND DELISTING. Parent shall use its reasonable
best efforts to cause the Parent Class A Stock to be issued in the Arrangement
to be approved for listing on the NASDAQ and The Toronto Stock Exchange prior to
the Closing Date, subject to official notice of issuance. Parent shall use its
reasonable best efforts to cause the Common Shares to be delisted from the
Bermuda Stock Exchange as soon as practicable following the Effective Time.

     6.10. PUBLICITY. The initial press release shall be a joint press release
and thereafter the Company and Parent shall not, nor shall they permit their
respective Affiliates to, issue any press release or otherwise make any public
announcement or filing with any Governmental Entity in respect of this Agreement
or the transactions contemplated hereby, without the prior approval of the other
party, except as may be required by law or by obligations pursuant to any
listing agreement with or rules of any national securities exchange.

     6.11. BENEFITS. (a) STOCK OPTIONS.

     (i) At the Effective Time, each Company Option, whether vested or unvested,
shall be deemed to constitute an option to acquire, on the same terms and
conditions as were applicable under such Company Option, the same number of
shares of Parent Class A Stock as the holder of such Company Option would have
been entitled to receive pursuant to the Arrangement had such holder exercised
such option in full immediately prior to the Effective Time (rounded to the
nearest whole number, with .50 being rounded downward), at a price per share
(rounded to the nearest whole cent with .50 rounded downward) equal to (y) the
aggregate exercise price for the Common Shares otherwise purchasable pursuant to
such Company Option divided by (z) the number of full shares of Parent Class A
Stock deemed purchasable pursuant to such Company Option in accordance with the
foregoing. At or prior to the Effective Time, the Company shall make

                                       29
<PAGE>

all necessary arrangements with respect to the Stock Plans to permit the
assumption of the unexercised Company Options by Parent pursuant to this
Section.

     (ii) Effective at the Effective Time, Parent shall assume each Company
Option in accordance with its terms and, where applicable, the Stock Plan under
which it was issued. At or prior to the Effective Time, Parent shall take all
corporate action necessary to reserve for issuance a sufficient number of shares
of Parent Class A Stock for delivery upon exercise of Company Options assumed by
it in accordance with this Section.

     (b) EMPLOYEE BENEFITS. Parent agrees to consider all employees of the
Company and its Subsidiaries as of the date hereof for continued employment
after the Effective Time by Parent or any of its Subsidiaries and Parent will
make its employee long term option incentive program available to all employees
of the Company and its Subsidiaries who become direct or indirect employees of
Parent. Parent shall recognize all prior service of such employees with the
Company and its Subsidiaries for purposes of determining eligibility to
participate and vesting under any employee benefit plan maintained by Parent,
the Company or any of their Subsidiaries after the Effective Time. Parent shall,
and shall cause the Company to, honor all employee benefit obligations to
current and former employees of the Company and its Subsidiaries under the
Compensation and Benefit Plans and all employee severance plans (or policies),
employment and severance agreements in existence prior to the date hereof.

     6.12. EXPENSES. Parent shall pay all charges and expenses, including those
of the Exchange Agent, in connection with the transactions contemplated in
Article IV. Except as otherwise provided in Section 8.5(b), whether or not the
Arrangement is consummated, all costs and expenses incurred in connection with
this Agreement and the Arrangement and the other transactions contemplated by
this Agreement shall be paid by the party incurring such expense.

     6.13. INDEMNIFICATION. (a) From and after the Effective Time, Parent agrees
that it will indemnify and hold harmless each present and former director and
officer of the Company (when acting in such capacity) determined as of the
Effective Time (the "INDEMNIFIED PARTIES") against any costs or expenses
(including reasonable attorneys' fees), judgments, fines, losses, claims,
damages or liabilities (collectively, "COSTS") incurred in connection with any
claim, action, suit, proceeding or investigation, whether civil, criminal,
administrative or investigative, arising out of matters existing or occurring at
or prior to the Effective Time, whether asserted or claimed prior to, at or
after the Effective Time, to the fullest extent that the Company would have been
permitted under Bermuda law and its memorandum of association or bye-laws or
pursuant to other agreements in effect on the date hereof to indemnify such
Person (and Parent shall also advance expenses as incurred to the fullest extent
permitted under applicable law PROVIDED the Person to whom expenses are advanced
provides an undertaking to repay such advances if it is ultimately determined
that such Person is not entitled to indemnification).

                                       30
<PAGE>

     (b) Any Indemnified Party wishing to claim indemnification under paragraph
(a) of this Section 6.13, upon learning of any such claim, action, suit,
proceeding or investigation, shall promptly notify Parent thereof, using
reputable counsel, but the failure to so notify shall not relieve Parent of any
liability it may have to such Indemnified Party if such failure does not
materially prejudice the indemnifying party. In the event of any such claim,
action, suit, proceeding or investigation (whether arising before or after the
Effective Time), (i) Parent shall have the right to assume the defense thereof,
using reputable counsel, and Parent shall not be liable to such Indemnified
Parties for any legal expenses of other counsel or any other expenses
subsequently incurred by such Indemnified Parties in connection with the defense
thereof, except that if Parent elects not to assume such defense or counsel for
the Indemnified Parties advises that there are issues which raise conflicts of
interest between Parent and the Indemnified Parties, the Indemnified Parties may
retain counsel satisfactory to them, and Parent shall pay all reasonable fees
and expenses of such counsel for the Indemnified Parties promptly as statements
therefor are received; PROVIDED, however, that Parent shall be obligated
pursuant to this paragraph (b) to pay for only one firm of counsel for all
Indemnified Parties in any jurisdiction unless the use of one counsel for such
Indemnified Parties would present such counsel with a conflict of interest, (ii)
the Indemnified Parties will cooperate in the defense of any such matter and
(iii) Parent shall not be liable for any settlement effected without its prior
written consent; and PROVIDED, FURTHER, that Parent shall not have any
obligation hereunder to any Indemnified Party if and when a court of competent
jurisdiction shall ultimately determine, and such determination shall have
become final and non-appealable, that the indemnification of such Indemnified
Party in the manner contemplated hereby is prohibited by applicable law. Parent
may not agree to any settlement of any such claim or action, other than solely
for monetary damages for which the Parent shall be responsible hereunder,
without the prior written consent of the Indemnified Party, which consent shall
not be unreasonably withheld. In any action hereunder as to which the Parent has
assumed the defense thereof, the Indemnified Party shall continue to be entitled
to participate in the defense thereof, with counsel of its own choice, but the
Parent shall not be obligated hereunder to reimburse the indemnified party of
the costs thereof, except as provided in the immediately preceding sentence.

     (c) Parent shall for a period of six years from the Effective Time maintain
in effect the Company's current directors' and officers' liability insurance
covering all persons who are directors and officers of the Company on the date
of this Agreement to the extent such policy provides coverage for events
occurring prior to the Effective Time; PROVIDED, HOWEVER, that (i) in no event
shall Parent be required to expend in any one year an amount in excess of 150%
of the last annual premium paid by the Company prior to the date of this
Agreement for such insurance and (ii) Parent may substitute for such Company
policy, a policy or policies with at least the same coverage containing terms
and conditions which are no less advantageous to the persons who are directors
and officers of the Company on the date of this Agreement provided that said
substitution does not result in any gaps or lapses in coverage with respect to
matters occurring prior to the Effective Time.

                                       31
<PAGE>

     6.14. TAKEOVER STATUTE. If any Takeover Statute is or may become applicable
to the Arrangement or the other transactions contemplated by this Agreement,
each of Parent and the Company and its board of directors shall grant such
approvals and take such actions as are necessary so that such transactions may
be consummated as promptly as practicable on the terms contemplated by this
Agreement, or by the Arrangement and otherwise act to eliminate or minimize the
effects of such statute or regulation on such transactions.

     6.15. PARENT CAPITAL REORGANIZATION. Prior to the Effective Date, Parent
will use its best efforts to have its shareholders approve, either at a meeting,
or by consent in writing, a reorganization of its authorized and issued capital
stock in the following manner: (i) the issued and unissued Class A Non-Voting
Shares will be changed to Parent Class A Stock with 50 votes per share; (ii) the
issued Class B Subordinate Voting Shares will be converted or exchanged into
Parent Class A Stock and the unissued Class B Subordinate Voting Shares will be
cancelled; (iii) the issued Series A Non-Voting Preferred Shares will be
converted or exchanged into Parent Class A Stock and the unissued Series A
Non-Voting Preferred Shares will be cancelled; (iv) the Class C Redeemable
Preferred Shares will be cancelled; (v) each issued Class C Multiple Voting
Share will be exchanged for 500 Class B Subordinate Voting Shares and one Class
C Non-Voting Participating Share (together, a "UNIT"), and the unissued Class C
Multiple Voting Shares will be cancelled; (vi) a class of unlimited Class D
Multiple Voting Shares will be created; (vii) a class of unlimited Class E
Non-Voting Shares will be created; and (viii) a class of unlimited Preferred
Shares issuable in series will be created (collectively, the "CAPITAL
REORGANIZATION"); PROVIDED, HOWEVER, that (i) the ratio of the voting power of
each Parent Class D Multiple Voting Share to the voting power of each share of
Parent Class A Stock shall not be greater than 10:1, (ii) the ratio of the
voting power of each Unit to the voting power of each share of Parent Class A
Stock shall not be greater than 10:1, and (iii) the ratio of the voting power of
each share of Preferred Shares (if any) established prior to the Effective Time
to the voting power of each share of Parent Class A Stock shall not be greater
than 10:1. The rights, privileges, restrictions and preferences of each class of
the New Parent Capital Stock will be in accordance with this Section 6.15 and
otherwise in all material respects as set forth in Exhibit B to this Agreement.
Notwithstanding the foregoing, Parent may change the capital structure of Parent
to provide for changes in the classes of capital stock, so long as such changes
would be economically equivalent to the Company and its Shareholders in all
material respects and any such new structure shall be deemed the "Capital
Reorganization."

     6.16. COVENANTS RELATING TO TAX FREE STATUS OF THE ARRANGEMENT. The parties
intend the Arrangement to qualify as a reorganization under Section 368(a) of
the Code. Each party will (and will cause its Subsidiaries to) both before and
after the Effective Time (i) use all reasonable efforts to cause the Arrangement
to so qualify, (ii) refrain from taking any action that would reasonably be
expected to cause the Arrangement to fail to so qualify, and (iii) take the
position for all purposes that the Arrangement so qualifies. The Company and
Parent shall each reasonably cooperate in

                                       32
<PAGE>

connection with obtaining the opinions of special counsel described in Section
7.3(c) including, without limitation, providing to special counsel such
representations that are reasonably required by special counsel to enable it to
render such opinion.

     6.17. PFIC AND GRA COVENANTS. (a) Following the Effective Time, (i) Parent
will make a good faith determination whether it constitutes a "passive foreign
investment company" for U.S. federal income tax purposes (a "PFIC") for each
taxable year ending after the Effective Time and (ii) if Parent so determines
that it does constitute a PFIC for any taxable year ending after the Effective
Time, Parent shall (1) make a good faith determination as to which of its direct
or indirect Subsidiaries constitutes a PFIC for each taxable year for which
Parent has determined in good faith that it is a PFIC and for each subsequent
taxable year, (2) provide notice of such status as a PFIC of the Parent and any
such Subsidiary to each Person that (A) held any shares of Parent Class A Stock
during the taxable year for which such status has been determined and (B)
acquired any shares of Parent Class A Stock pursuant to the Arrangement, (3) in
good faith provide each such Person with the information necessary in order for
such Person to timely (including any applicable extensions) (A) make an election
under Section 1295 of the Code for Parent and each such Subsidiary and (B)
comply with the reporting requirements applicable under Section 1295 of the Code
and (4) in good faith take any other action reasonably necessary to be taken by
Parent and reasonably requested by such Person in order for any such election to
be effective.

     (b) Following the Effective Time, in the event that any Person who
(directly or indirectly) acquires any shares of Parent Class A Stock in the
Arrangement files (or notifies Parent that it intends to file) a Again
recognition agreement@ under Section 367 of the Code and the Treasury
Regulations issued thereunder with respect to the Arrangement, the Parent shall
cooperate in good faith in connection with the filing of such agreement and any
subsequent filings required by such agreement.

     (c) In any case where specific performance is not possible, any damages
incurred as a result of a breach of this Section 6.17 will be paid solely in
shares of Parent Class A Stock at their then current fair market value unless it
has been finally determined at the time when such damages are paid that for any
reason the Arrangement does not qualify as a reorganization within the meaning
of Section 368(a) of the Code. Any such shares will be subject to all the terms
and conditions of the Voting Agreement.

     6.18. SYSTEM EXPANSION REQUIREMENTS. (a) Exhibit G to this Agreement sets
forth a schedule of the Company's and its subsidiaries' near-term estimated
backhaul capacity requirements for the period covered thereby, including the
estimated date, cost, route and proposed provider of such backhaul (the
"BACKHAUL REQUIREMENTS"). The Parties agree that the implementation of any of
the following will not constitute a breach of any other provision of this
Agreement:

     (b) NORTH AMERICA. Parent and the Company agree to enter into an agreement
as soon as practicable but not later than April 1, 2000. Such agreement will

                                       33
<PAGE>

provide for the purchase of backhaul capacity from Parent or its Affiliates for
all of the Company's Backhaul Requirements in North America set forth on
Schedule G (i) on terms and conditions no less favorable to the Company than
those provided to the Company under that certain arrangement identified as item
323 on Section 5.1(o) of the Company Disclosure Letter, (ii) with similar
specifications to those currently in place under such arrangement, and (iii) at
an aggregate price for the first twenty Gb/s of $24.6 million.

     (c) SOUTH AMERICA BACKHAUL. The Company will be permitted to commit to
purchase backhaul from MetroRed or another comparable supplier on customary
terms and conditions for the Backhaul Requirements outside of North America set
forth on Schedule G or in the event that Parent or one of its Affiliates agrees
to match such terms and conditions by April 1, 2000 then with Parent or such
Affiliate.

     (d) FINANCING OF NORTH AMERICA AND SOUTH AMERICA BACKHAUL. The Company will
finance the purchases described in subsections (b) and (c) above with available
working capital. Parent agrees that at any time after the termination of this
Agreement but prior to the two-month anniversary after the termination of this
Agreement pursuant to Article VIII, the Company will have the right to sell to
Parent or any third party designated by Parent, Senior Notes with aggregate
gross proceeds of up to $85 million on approximately the same terms and
conditions as set forth in that certain Senior Debt Facility Commitment Letter
dated as of February 8, 2000 between the Company and Credit Suisse First Boston
Corporation. The Senior Note covenants will be similar to those covenants in the
Company's Senior Notes issued July, 1999 and will have a market clearing rate,
but in no event will such rate be higher than 14.5%.

     (e) ARGENTINA EXTENSION. The Company and Parent will use reasonable best
efforts to develop a business and financing plan for the extension of the wet
system to Los Toninas and the Terrestrial extension into Buenos Aires. The
Company will provide an initial plan with 20 days of the date hereof. In the
event that the Company and Parent cannot mutually agree on a final business
plan, including the related financing thereof, within 40 days of the delivery of
the initial plan, then the Company may raise the financing necessary to build
such extensions. The Company will offer the Parent the opportunity to match the
terms of any financing offer.

                                  ARTICLE VII.

                                   Conditions

     7.1. CONDITIONS TO EACH PARTY'S OBLIGATION TO EFFECT THE ARRANGEMENT. The
respective obligation of each party to effect the Arrangement is subject to the
satisfaction or waiver at or prior to the Effective Time of each of the
following conditions:

     (a) SHAREHOLDER APPROVAL. (i) The Arrangement shall have been duly approved
by holders of Shares constituting the Company Requisite Vote in accordance

                                       34
<PAGE>

with applicable law and the constituent documents of the Company; and (ii) the
Interim Order and the Final Order shall each have been obtained in form and on
terms consistent with this Agreement and satisfactory to each of the Company and
Parent, acting reasonably, and shall not have been set aside or modified in a
manner unacceptable to such parties, acting reasonably, on appeal or otherwise.

     (b) REGULATORY CONSENTS. Any waiting period applicable to the consummation
of the Arrangement under the HSR Act shall have expired or been terminated and,
other than the filings provided for in Section 1.3, all notices, reports and
other filings required to be made prior to the Effective Time by the Company or
Parent or any of their respective Subsidiaries with, and all consents,
registrations, approvals, permits and authorizations required to be obtained
prior to the Effective Time by the Company or Parent or any of their respective
Subsidiaries from, any Governmental Entity, including, but not limited to the
FCC (collectively, "GOVERNMENTAL CONSENTS") in connection with the execution and
delivery of this Agreement and the consummation of the Arrangement and the other
transactions contemplated hereby by the Company and Parent shall have been made
or obtained (as the case may be) and in the case of the FCC, shall have become
final orders.

     (c) LITIGATION. No court or Governmental Entity of competent jurisdiction
shall have enacted, issued, promulgated, enforced or entered any statute, law,
ordinance, rule, regulation, judgment, decree, injunction or other order
(whether temporary, preliminary or permanent) that is in effect and restrains,
enjoins or otherwise prohibits consummation of the Arrangement or the other
transactions contemplated by this Agreement (collectively, an "ORDER"), and no
Governmental Entity or any other Person shall have instituted any proceeding or
threatened to institute any proceeding seeking any such Order.

     (d) BLUE SKY APPROVALS. Parent shall have received all state securities and
"blue sky" permits and approvals necessary to consummate the transactions
contemplated hereby.

     7.2. CONDITIONS TO OBLIGATIONS OF PARENT. The obligations of Parent to
effect the Arrangement are also subject to the satisfaction or waiver by Parent
at or prior to the Effective Time of the following conditions:

     (a) REPRESENTATIONS AND WARRANTIES. The representations and warranties of
the Company set forth in this Agreement shall be true and correct in all
material respects as of the date of this Agreement and as of the Closing Date as
though made on and as of the Closing Date (except to the extent such
representations or warranties speak as of an earlier date) and the Company shall
have received a certificate signed on behalf of the Company by an executive
officer of Parent to such effect.

     (b) PERFORMANCE OF OBLIGATIONS OF THE COMPANY. The Company shall have
performed in all material respects all obligations required to be performed by
it under

                                       35
<PAGE>

this Agreement at or prior to the Closing Date, and Parent shall have received a
certificate signed on behalf of the Company by an executive officer of the
Company to such effect.

     (c) CONSENTS UNDER AGREEMENTS. The Company shall have obtained the consents
or approvals listed in Section 7.2(c) of the Company Disclosure Letter and
Parent shall have obtained the consents or approvals listed in Section 7.2(c) of
the Parent Disclosure Letter.

     (d) ARRANGEMENT CONSIDERATION. The Final Order shall not provide for any of
the Arrangement Consideration to be paid in other than Shares.

     7.3. CONDITIONS TO OBLIGATION OF THE COMPANY. The obligation of the Company
to effect the Arrangement is also subject to the satisfaction or waiver by the
Company at or prior to the Effective Time of the following conditions:

     (a) REPRESENTATIONS AND WARRANTIES. The representations and warranties of
Parent set forth in this Agreement shall be true and correct in all material
respects as of the date of this Agreement and as of the Closing Date as though
made on and as of the Closing Date, (except to the extent any such
representation and warranty expressly speaks as of an earlier date) and the
Company shall have received a certificate signed on behalf of Parent by an
executive officer of Parent to such effect.

     (b) PERFORMANCE OF OBLIGATIONS OF PARENT. Parent shall have performed in
all material respects all obligations required to be performed by it under this
Agreement at or prior to the Closing Date, and the Company shall have received a
certificate signed on behalf of Parent by an executive officer of Parent to such
effect.

     (c) TAX OPINION. The Company shall have received an opinion of Debevoise &
Plimpton, special counsel to the Company, in form and substance reasonably
satisfactory to the Company, dated the Effective Time, to the effect that, on
the basis of the facts, representations and assumptions set forth in such
opinion which are consistent with the stated facts existing at the Effective
Time, (i) the Arrangement will be treated for United States federal income tax
purposes as a reorganization within the meaning of Section 368(a) of the Code
and (ii) each of the Company and Parent will be a party to the reorganization
within the meaning of Section 368(b) of the Code. In rendering the opinion
described in the preceding sentence, such counsel may require and rely upon
representations contained in certificates of officers of Parent and the Company,
substantially in the form of Exhibits E and F hereto.

     (d) INITIAL PUBLIC OFFERING; CAPITAL REORGANIZATION. The Form F-1
Registration Statement referred to in Section 5.2(e) shall have been declared
effective by the SEC and the Initial Public Offering of Parent Class A Stock
contemplated thereby shall have occurred. The Capital Reorganization shall have
occurred.

                                       36
<PAGE>

     (e) LISTING. Parent shall have caused the Parent Class A Stock to be issued
in the Arrangement to be (i) approved for listing on the NASDAQ, subject to
official notice of issuance and (ii) conditionally approved for listing on The
Toronto Stock Exchange, subject to filing required documentation.

     (f) REGISTRATION RIGHTS AGREEMENT. Parent shall have entered into a
registration rights agreement in form and substance consistent with the terms
set forth on EXHIBIT C to this Agreement, with each of the persons who have
executed the Voting Agreement.

                                  ARTICLE VIII.

                                   Termination

     8.1. TERMINATION BY MUTUAL CONSENT. This Agreement may be terminated and
the Arrangement may be abandoned at any time prior to the Effective Time,
whether before or after the approval by shareholders of the Company referred to
in Section 7.1(a), by mutual written consent of the Company and Parent by action
of their respective Boards of Directors.

     8.2. TERMINATION BY EITHER PARENT OR THE COMPANY. This Agreement may be
terminated and the Arrangement may be abandoned at any time prior to the
Effective Time by action of the Board of Directors of either Parent or the
Company if (i) the Arrangement shall not have been consummated by December 31,
2000, whether such date is before or after the date of approval by the
shareholders of the Company (the "TERMINATION DATE"), (ii) the approval of the
Company's shareholders required by Section 7.1(a) shall not have been obtained
at a meeting duly convened therefor or at any adjournment or postponement
thereof, (iii) the Bermuda Court shall fail to sanction the Scheme of
Arrangement or (iv) any Order permanently restraining, enjoining or otherwise
prohibiting consummation of the Arrangement shall become final and
non-appealable (whether before or after the approval by the shareholders of the
Company or Parent); PROVIDED, that the right to terminate this Agreement
pursuant to clause (i) above shall not be available to any party that has
breached in any material respect its obligations under this Agreement in any
manner that shall have proximately contributed to the occurrence of the failure
of the Arrangement to be consummated.

     8.3. TERMINATION BY THE COMPANY. This Agreement may be terminated and the
Arrangement may be abandoned at any time prior to the Effective Time, whether
before or after the approval by shareholders of the Company referred to in
Section 7.1(a), by action of the Board of Directors of the Company there has
been a material breach by Parent of any representation, warranty, covenant or
agreement contained in this Agreement that is not curable or, if curable, is not
cured within 30 days after written notice of such breach is given by the Company
to Parent.

                                       37
<PAGE>

     8.4. TERMINATION BY PARENT. (a) This Agreement may be terminated and the
Arrangement may be abandoned at any time prior to the Effective Time, whether
before or after the approval by the shareholders of the Company referred to in
Section 7.1(a), by action of the Board of Directors of Parent (i) if there has
been a material breach by the Company of any covenant or agreement contained in
this Agreement (other than the representations and warranties contained in
Section 5.1) that is not curable or, if curable, is not cured within 30 days
after written notice of such breach is given by Parent to the Company or the
Company to Parent.

     (b) This Agreement may be terminated and the Arrangement may be abandoned
as of the Closing Date, by action of the Board of Directors of Parent if as of
such date all of the conditions set forth in Article VII other than the
condition set forth in Section 7.2(a) (and those conditions that by their nature
are to be satisfied at the Closing) shall be satisfied.

     8.5. EFFECT OF TERMINATION AND ABANDONMENT. In the event of termination of
this Agreement and the abandonment of the Arrangement pursuant to this Article
VIII, this Agreement (other than as set forth in Section 9.1) shall become void
and of no effect with no liability on the part of any party hereto (or of any of
its directors, officers, employees, agents, legal and financial advisors or
other representatives); PROVIDED, however, except as otherwise provided herein,
no such termination shall relieve any party hereto of any liability or damages
resulting from any breach of this Agreement.

                                  ARTICLE IX.

                            Miscellaneous and General

     9.1. SURVIVAL. This Article IX, the agreements of the Company Parent
contained in Section 6.12 (Expenses), Section 8.5 (Effect of Termination and
Abandonment) and the Confidentiality Agreement shall survive the termination of
this Agreement. All other representations, warranties, covenants and agreements
in this Agreement shall not survive the consummation of the Arrangement or the
termination of this Agreement; it being understood that this Section 9.1 shall
not limit any covenant or agreement of the parties which by its terms
contemplates performance after the Effective Time.

     9.2. MODIFICATION OR AMENDMENT. Subject to the provisions of the applicable
law, at any time prior to the Effective Time, the parties hereto may modify or
amend this Agreement, by written agreement executed and delivered by duly
authorized officers of the respective parties.

     9.3. WAIVER OF CONDITIONS. The conditions to each of the parties'
obligations to consummate the Arrangement are for the sole benefit of such party
and may be waived by such party in whole or in part to the extent permitted by
applicable law.

                                       38
<PAGE>

     9.4. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each such counterpart being deemed to be an original instrument,
and all such counterparts shall together constitute the same agreement.

     9.5. GOVERNING LAW AND VENUE; WAIVER OF JURY TRIAL. (a) THIS AGREEMENT
SHALL BE DEEMED TO BE MADE IN AND IN ALL RESPECTS SHALL BE INTERPRETED,
CONSTRUED AND GOVERNED BY AND IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW
YORK WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF. The parties
hereby irrevocably submit to the jurisdiction of the courts of the United States
of America located in the courts of the State of New York and the Federal courts
of the United States of America located in the State of New York solely in
respect of the interpretation and enforcement of the provisions of this
Agreement and of the documents referred to in this Agreement, and in respect of
the transactions contemplated hereby, and hereby waive, and agree not to assert,
as a defense in any action, suit or proceeding for the interpretation or
enforcement hereof or of any such document, that it is not subject thereto or
that such action, suit or proceeding may not be brought or is not maintainable
in said courts or that the venue thereof may not be appropriate or that this
Agreement or any such document may not be enforced in or by such courts, and the
parties hereto irrevocably agree that all claims with respect to such action or
proceeding shall be heard and determined in such a New York State or Federal
court. The parties hereby consent to and grant any such court jurisdiction over
the person of such parties and over the subject matter of such dispute and agree
that mailing of process or other papers in connection with any such action or
proceeding in the manner provided in Section 9.6 or in such other manner as may
be permitted by law shall be valid and sufficient service thereof.

     (b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE
UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND
THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY
RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND
ACKNOWLEDGES THAT (i) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (ii) EACH PARTY
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (iii) EACH PARTY
MAKES THIS WAIVER VOLUNTARILY, AND (iv) EACH PARTY HAS BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 9.5.

                                       39
<PAGE>

     9.6. NOTICES. Any notice, request, instruction or other document to be
given hereunder by any party to the others shall be in writing and delivered
personally or sent by registered or certified mail, postage prepaid, or by
facsimile:

                  if to Parent

                  Gregory B. Maffei,
                  Chief Executive Officer
                  800 Fifth Street
                  Suite 4100
                  Seattle, WA  98104
                  fax:  (206) 447-1447
                  (with a copy to Alison Ressler, Esq.,
                  Sullivan & Cromwell,
                  1888 Century Park East, Los Angeles, California 90067
                  fax:  (310) 712-8800.)

                  if to the Company

                  Jorge L. Escalona,
                  President and Chief Executive Officer
                  3300 Highway #7 West, Suite 401
                  Concord, Ontario, Canada L4K 4M3
                  fax:  (905) 760-7470
                  (with copies to:
                  Lin Gentemann,
                  General Counsel
                  Swan Building
                  26 Victoria Street
                  Hamilton HM12
                  Bermuda
                  fax:  (441) 296-3970

                  Margaret A. Davenport, Esq.,
                  Debevoise & Plimpton
                  875 Third Avenue
                  New York, New York  10022
                  fax:  (212) 909-6836.)

or to such other persons or addresses as may be designated in writing by the
party to receive such notice as provided above; PROVIDED, HOWEVER, that all
requests made pursuant to Section 6.1 shall be delivered to Parent in the manner
provided above and by e-mail to the relevant person at the e-mail address
specified below:

                                       40
<PAGE>

                  Tara Ferris:  tara.ferris@wwfiber.com
                  Scott Lyons:  scott.lyons@wwfiber.com
                  Paul Townsend:  paultownsend@wwfiber.com
                  Vanessa Wittman:  vanessaw@wwfiber.com

     9.7. ENTIRE AGREEMENT. This Agreement (including any exhibits hereto), the
Company Disclosure Letter, the Parent Disclosure Letter and the Confidentiality
Agreement, dated February 29, 2000, between Parent and the Company (the
"CONFIDENTIALITY AGREEMENT") constitute the entire agreement, and supersede all
other prior agreements, understandings, representations and warranties both
written and oral, among the parties, with respect to the subject matter of this
Agreement.

     9.8. NO THIRD PARTY BENEFICIARIES. Except for the rights granted under
Section 6.13 and Sections 6.16 and 6.17, only with respect to the parties to the
Voting Agreement (on behalf of themselves and their equity owners), this
Agreement is not intended to confer upon any Person other than the parties
hereto any rights or remedies hereunder.

     9.9. OBLIGATIONS OF PARENT AND OF THE COMPANY. Whenever this Agreement
requires a Subsidiary of Parent to take (or refrain from taking) any action,
such requirement shall be deemed to include an undertaking on the part of Parent
to cause such Subsidiary to take (or refrain from taking) such action. Whenever
this Agreement requires a Subsidiary of the Company to take (or refrain from
taking) any action, such requirement shall be deemed to include an undertaking
on the part of the Company to cause such Subsidiary to take (or refrain from
taking) such action.

     9.10. SEVERABILITY. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability or the other provisions hereof. If any
provision of this Agreement, or the application thereof to any Person or any
circumstance, is invalid or unenforceable, (a) a suitable and equitable
provision shall be substituted therefor in order to carry out, so far as may be
valid and enforceable, the intent and purpose of such invalid or unenforceable
provision and (b) the remainder of this Agreement and the application of such
provision to other Persons or circumstances shall not be affected by such
invalidity or unenforceability, nor shall such invalidity or unenforceability
affect the validity or enforceability of such provision, or the application
thereof, in any other jurisdiction.

     9.11. INTERPRETATION. The table of contents and headings herein are for
convenience of reference only, do not constitute part of this Agreement and
shall not be deemed to limit or otherwise affect any of the provisions hereof.
Where a reference in this Agreement is made to a Section or Exhibit, such
reference shall be to a Section of or Exhibit to this Agreement unless otherwise
indicated. Whenever the words "include," "includes" or "including" are used in
this Agreement, they shall be deemed to be followed by the words "without
limitation."

                                       41
<PAGE>

     9.12. ASSIGNMENT. This Agreement shall not be assignable by operation of
law or otherwise.

                                       42
<PAGE>

                  IN WITNESS WHEREOF, this Agreement has been duly executed and
delivered by the duly authorized officers of the parties hereto as of the date
first written above.

                                         GLOBENET COMMUNICATIONS GROUP LIMITED

                                         By: __________________________
                                             Name:
                                             Title:

                                         WORLDWIDE FIBER INC.

                                         By: __________________________
                                             Name:
                                             Title:

<PAGE>

                                                                       EXHIBIT A

                        Form of Company Affiliates Letter

                                                        March __, 2000

Worldwide Fiber Inc.
800 Fifth Avenue
Suite 4100
Seattle, WA  98104

Ladies and Gentlemen:

                  The undersigned is a holder of Common Shares, par value
$1.50 per share ("Company Common Stock"), of GlobeNet Communications Group
Limited, a Bermuda company (the "Company") and/or shares of Class B
Restricted Voting Shares, par value $1.50 per share, of the Company ("Class B
Shares"). Pursuant to the terms of that certain Agreement and Plan of Merger,
dated as of March __, 2000, by and between the Company and Worldwide Fiber
Inc., a Canadian corporation ("WFI"), Company Common Stock will be exchanged
for shares of WFI (the "Arrangement"). In connection with the Arrangement,
the undersigned, as a holder of Company Common Stock will be entitled to
receive Class A Voting Shares of WFI (the "Securities") in exchange for the
shares of Company Common Stock held by the undersigned at the effective time
of the Arrangement.

                  The undersigned acknowledges that the undersigned may be
deemed an "affiliate" of the Company within the meaning of Rule 145 ("Rule 145")
promulgated under the Securities Act of 1933, as amended (the "Act"), and/or as
such term is used in and for purposes of Accounting Series Release Nos. 130 and
135, as amended, of the Securities and Exchange Commission (the "Commission") by
virtue of the undersigned's position as an officer or director of the Company or
ownership of Company Common Stock or Class B Shares, although nothing contained
herein shall be construed as an admission of such status.

                  If in fact the undersigned were an affiliate of the Company
under the Act, the undersigned's ability to sell, assign or transfer any
Securities received by the undersigned in exchange for any shares of Company
Common Stock pursuant to the Arrangement may be restricted unless such sale,
assignment or transfer is registered under the Act or an exemption from such
registration is available. The undersigned understands that such exemptions are
limited and the undersigned has obtained advice of counsel as to the nature and
conditions of such exemptions, including information with respect to the
applicability to the sale of such Securities of Rules 144 and 145(d) promulgated
under the Act.

                                      A-1

<PAGE>

                  The undersigned hereby represents to and covenants with WFI
that it will not sell, assign or transfer any Securities received by the
undersigned in exchange for shares of Company Common Stock pursuant to the
Arrangement except (i) pursuant to an effective registration statement under the
Act, (ii) by a sale made in conformity with the volume and other limitations of
Rule 145 (and otherwise in accordance with Rule 144 under the Act, if the
undersigned is an affiliate of WFI and if so required at the time) or (iii) in a
transaction which, in the opinion of independent counsel reasonably satisfactory
to WFI, or as described in a "no-action" or interpretive letter from the Staff
of the Commission reasonably satisfactory to WFI, is not required to be
registered under the Act.

                  The undersigned understands that WFI is under no obligation to
register the sale, assignment, transfer or other disposition of the Securities
by the undersigned or on behalf of the undersigned under the Act or to take any
other action necessary in order to make compliance with an exemption from such
registration available solely as a result of the Arrangement.

                  In the event of a sale of Securities pursuant to Rule 145, the
undersigned will supply WFI with evidence of compliance with such Rule, in the
form of customary seller's and broker's Rule 145 representation letters or as
WFI may otherwise reasonably request. The undersigned understands that WFI may
instruct its transfer agent to withhold the transfer of any Securities disposed
of by the undersigned in a manner inconsistent with this letter.

                  The undersigned acknowledges and agrees that appropriate
legends will be placed on certificates representing Securities received by the
undersigned in the Arrangement or held by a transferee thereof, which legends
will be removed (i) by delivery of substitute certificates upon the earlier of
(a) the expiration of the one year period immediately following the Effective
Time and (b) the receipt of a letter from the staff of the Commission, or an
opinion of counsel in form and substance reasonably satisfactory to WFI, to the
effect that such legends are no longer required for the purposes of the Act and
the rules and regulations of the Commission promulgated thereunder or (ii) in
the event of a sale of the Securities which has been registered under the Act or
made in conformity with the provisions of Rule 145.

                  The undersigned further understands and agrees that this
letter agreement shall apply to all shares of Company Common Stock, Class B
Shares and Securities that the undersigned is deemed to beneficially own
pursuant to applicable federal securities law.

                                      A-2

<PAGE>

                  The undersigned acknowledges that it has carefully reviewed
this letter and understands the requirements hereof and the limitations imposed
upon the distribution, sale, transfer or other disposition of Securities.

                                       Sincerely,

                                       [NAME OF COMPANY AFFILIATE]

                                       A-3
<PAGE>

                                                                       EXHIBIT G

                                  NORTH AMERICA

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------

                                RFS Date           Cost       Proposed Provider
-------------------------------------------------------------------------------
<S>                          <C>                  <C>         <C>

Tuckerton, NJ                September 2000       $17.2m             WFI

@ 20 G b/s
-------------------------------------------------------------------------------
Boca Raton, FL               November 2000        $7.4m              WFI

@ 20 G b/s
-------------------------------------------------------------------------------
</TABLE>

                                      OTHER

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------

                                RFS Date           Cost       Proposed Provider
-------------------------------------------------------------------------------
<S>                          <C>                  <C>         <C>

Rio de Janeiro, Brazil       February 2001         13*        MetroRed or WFI

@ 10 G b/s
-------------------------------------------------------------------------------
Sao Paolo, Brazil            February 2001         32*        MetroRed or WFI

@ 10 G b/s
-------------------------------------------------------------------------------
</TABLE>

NOTE: Additional routes or capacity to be resolved on an as needed basis and
      subject to review of business case.

---------------------------
*    Asterisk denotes that the numbers represented are subject to confirmation.

                                      G-1<PAGE>

                                                                   Exhibit 10.32

                                    AGREEMENT

                  THIS AGREEMENT is made as of this 20th day of March, 2000, by
and among 360NETWORKS INC., a company continued under the laws of Canada
(formerly known as Worldwide Fiber Inc.) ("360"), WORLDWIDE FIBER NETWORKS LTD.,
a Canadian company incorporated in the Province of Alberta (`WFN"), LEDCOR
COMMUNICATIONS LTD., a Canadian company incorporated in the province of Alberta,
LEDCOR INDUSTRIES, INC., a Washington corporation, WORLDWIDE FIBER (USA), INC.,
a Nevada corporation (formerly known as Pacific Fiber Link, Inc.) (the
"Company"), MI-TECH COMMUNICATIONS, LLC, a Wisconsin limited liability company
("Mi-Tech"), LEDCOR INC., a Canadian company incorporated in the Province of
Alberta and MICHELS PIPELINE CONSTRUCTION, INC., a Wisconsin corporation
("Michels").

                                  WITNESSETH :

                  WHEREAS, the parties entered into a Shareholders' Agreement,
dated December 31, 1998, a copy of which is attached hereto as EXHIBIT A (the
"Shareholders' Agreement");

                  WHEREAS, Mi-Tech is the holder of 50 shares of Class A Voting
Preferred Stock and 50 shares of Non-Voting Common Stock of the Company
(collectively referred to herein as the "Company Shares");

                  WHEREAS, among other things, the Shareholders' Agreement
provides Mi-Tech with an option to convert its Company Shares into shares of 360
in the event 360 effects an underwritten initial public offering of its stock
(the "IPO");

                  WHEREAS, Articles IV, V and VI of the Shareholders' Agreement
set forth the manner in which the Company Shares are to be converted into shares
of 360 of the same class and series to be offered to the public;

                  WHEREAS, 360 and Mi-Tech wish to forego the procedures set
forth in Articles IV, V and VI of the Shareholders' Agreement and instead set
forth herein the agreement of 360 and Mi-Tech with respect to the amount of 360
shares Mi-Tech will receive in exchange for the Company Shares;

                  WHEREAS, Mi-Tech has agreed to exchange the Company Shares for
fully paid and non-assessable Class A Subordinate Voting Shares (the "Class A
Subordinate Voting Shares") of 360 pursuant to this Agreement; and

                  WHEREAS, 360, Mi-Tech and the other parties to this Agreement
also wish to set forth herein other agreements which relate to 360, Mi-Tech, the
Company, the other parties to this Agreement and the Shareholders' Agreement.

<PAGE>

                  NOW, THEREFORE, for good and valuable consideration, the
receipt of which is hereby acknowledged, the parties hereby agree as follows:

                  Section 1. CONVERSION OF COMPANY SHARES INTO 360 SHARES.
Subject to the terms and conditions set forth in this Agreement, at the Closing
(as hereinafter defined), all Company Shares held by Mi-Tech shall be
transferred to 360 and 360 shall, in the manner provided below, issue in
exchange therefor, the number of shares of Class A Subordinate Voting Shares
equal to the quotient obtained by dividing Three Hundred and Twelve Million
Dollars (US$312,000,000) by the initial public offering price to the public per
share of the Class A Subordinate Voting Shares as reflected in the final
prospectus distributed in connection with the IPO (the "IPO Price"). Such
transaction is hereinafter referred to as the "Exchange". Mi-Tech hereby assigns
to William Blair & Company ("Blair") 2% of the subscription rights held by
Mi-Tech in connection with the Exchange, so that Blair shall receive 2% of the
Class A Subordinate Voting Shares to be issued in the Exchange.

                  Section 2. CLOSING; EXCHANGE OF SHARES; VALIDITY OF WORLDWIDE
SHARES.

                  (a) CLOSING. Subject to the terms and conditions set forth in
this Agreement, the closing of the Exchange (the "Closing") shall take place at
such location as 360 shall specify by notice in writing to Mi-Tech, on the day
of and immediately prior to the IPO, or on such other Business Day as may be
agreed to in writing by Mi-Tech and 360 (the "Closing Date"). For purposes of
this Agreement, "Business Day" means any day other than a Saturday, a Sunday or
a day when commercial banks in Vancouver, British Columbia are required to be
closed.

                  (b) EXCHANGE. At the Closing, Mi-Tech shall cause to be
delivered to Worldwide certificates representing Mi-Tech's Company Shares
together with such documents and instruments of transfer necessary or required
to transfer the Company Shares on the books of the Company into the name of 360,
and, within three (3) Business Days after the Closing, 360 shall deliver (i) to
Mi-Tech a certificate or certificates representing ninety-eight percent (98%) of
the Class A Subordinate Voting Shares to be issued in the Exchange; and (ii) to
Blair a certificate or certificates representing two percent (2%) of the Class A
Subordinate Voting Shares issuable in the Exchange. Each certificate
representing 360 Shares issued to Mi-Tech and to Blair shall have a legend
containing the following:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN QUALIFIED
         FOR PUBLIC DISTRIBUTION IN CANADA AND HAVE NOT BEEN REGISTERED UNDER
         THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED. THE SECURITIES
         HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE SOLD, TRANSFERRED OR
         OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH APPLICABLE CANADIAN
         SECURITIES LAWS AND THE UNITED STATES SECURITIES ACT OF 1933, AS
         AMENDED.

         IN ADDITION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT
         TO THE RESTRICTIONS ON TRANSFER SET FORTH IN THE WORLDWIDE FIBER, INC.
         SHAREHOLDERS AGREEMENT, DATED

                                      -2-
<PAGE>

         AS OF SEPTEMBER 9, 1999, AS AMENDED, BY THE CORPORATION AND THE PARTIES
         THERETO, A COPY OF WHICH IS ON FILE IN THE OFFICE OF THE CORPORATION.

The requirement that the above securities legend be placed upon certificates
evidencing any such securities shall cease and terminate upon the earliest of
the following events: (a) when such securities are transferred in a registered
offering subsequent to the IPO; (b) when such securities are transferred
pursuant to Rule 144 under the 1933 Act; or (c) when such securities are
transferred in any other transaction if the seller delivers to 360 an opinion of
its counsel, which counsel and opinion shall be reasonably satisfactory to 360,
to the effect that such legend is no longer necessary in order to protect 360
against a violation by it of applicable securities laws upon any sale or other
disposition of such securities without registration thereunder. The requirement
that the above legend regarding the Shareholders Agreement of 360, dated
September 9, 1999, as amended (the "360 Shareholders Agreement") be placed upon
certificates evidencing any such securities shall cease and terminate upon the
termination of the 360 Shareholders Agreement. Upon the occurrence of any event
requiring the removal of a legend hereunder, 360, upon the surrender of
certificates containing such legend, shall, at its own expense, deliver
immediately to the holder of any such securities as to which the requirement for
such legend shall have terminated, one or more new certificates evidencing such
securities not bearing such legend.

                  (c) CLOSING ESCROW AGREEMENT. As soon as practicable after the
execution of this Agreement 360, Mi-Tech and Michels shall execute and deliver a
Closing Escrow Agreement (the "Closing Escrow Agreement") in the form attached
as EXHIBIT B, and each of 360, Mi-Tech and Michels shall deliver to the escrow
agent named in the Closing Escrow Agreement (the "Closing Escrow Agent") the
closing documents described in the Closing Escrow Agreement as being delivered
by such party.

                  (d) VALIDITY OF SHARES. The Class A Subordinate Voting Shares
to be issued in the Exchange shall be duly authorized by all necessary corporate
action by 360 and, upon issuance in accordance with the provisions of Sections 1
and 2 of this Agreement, such Class A Subordinate Voting Shares to be issued in
the Exchange shall be validly issued, fully paid and nonassessable.

                  (e) NO FRACTIONAL SHARES. Notwithstanding any other provision
in this Agreement, no certificates or scrip for fractional shares of Class A
Non-Voting stock shall be issued in the Exchange. In lieu of any such fractional
shares, Mi-Tech or Blair, as the case may be, shall be entitled to receive a
cash payment equal to such fraction multiplied by the IPO Price.

                  Section 3. REGISTRATION RIGHTS. The parties acknowledge that
the Registration Rights Agreement attached hereto as EXHIBIT C (the
"Registration Rights Agreement") shall be executed and delivered by 360 and
Mi-Tech pursuant to the Closing Escrow Agreement and that such Registration
Rights Agreement shall be effective concurrent with the Closing.

                                      -3-
<PAGE>

                  Section 4. CONTINUANCE OF INDEMNIFICATION OBLIGATIONS. The
agreements and obligations of the Company set forth in the 3rd and 4th sentences
of Section 1.2 of the Shareholders' Agreement shall survive the termination of
the Agreement.

                  Section 5. [DELETED]

                  Section 6. GOVERNING AGREEMENT. Section 3.2(b) of the
Governing Agreement by and among Worldwide Fiber Ltd., Mi-Tech, Ledcor Inc.,
Michels, Ledcor Industries Inc. and the Company, dated August 31, 1998 shall
survive the termination of the Shareholders' Agreement. For convenience of
reference, Section 3.2(b) provides as follows:

         "Ledcor or its affiliates shall use their best reasonable commercial
         efforts to obtain releases of all guarantees given by Mi-Tech or
         Michels and, to the extent that such guarantees are not released,
         Ledcor will defend, indemnify and save harmless Mi-Tech and Michels
         (the "Indemnified Persons") or either of them from and against all
         actions, proceedings, demands, claims, liabilities, losses, damages,
         judgments, costs and expenses including, without limiting the
         generality of the foregoing, reasonable legal fees and disbursements
         which the Indemnified Persons or either of them may be liable to pay or
         may incur by reason of such guarantees."

                  Section 7. TERMINATION OF AGREEMENT; SURVIVAL. Upon the
Closing, the Shareholders' Agreement shall terminate except to the extent
specifically set forth herein and except for Sections 1.4, 1.5, 1.6, 3.4 and
14.10 of the Shareholders' Agreement, all of which shall survive termination of
the Shareholders' Agreement, and all of which shall be amended by deleting the
same and replacing the same with the following.

                  1.4 SCOPE OF BUSINESS

                  The parties hereto acknowledge and agree that the Company's
         scope of business ("Scope of Business") shall be to continue the
         development of the fiber optic builds within the continental United
         States and to undertake within the continental United States and any
         festoons between cities in the continental United States (the
         "Territory") any and all projects as developer related to the
         development of telecommunications infrastructures, including conduits,
         design, management of construction, marketing, management of
         maintenance, operation, ownership and/or management, of all conduit and
         rights-of-way associated with related copper cable, fiber optic cable
         and coaxial cable telecommunications and transmission systems,
         ownership and operation of, and the selling and reselling of, capacity,
         or any similar such functions or services that can reasonably be
         included in the definition of telecommunications development within the
         Territory.

                  1.5 COMMITMENTS OF MICHELS

                  (a) Michels commits to support and assist the Company in its
         strategy of developing fiber optic systems in the Territory. Michels
         shall provide the Company with general advice and assistance in
         complying with labor or other union issues and such

                                      -4-
<PAGE>

         requirements pertinent to all projects of the Company. In addition,
         Michels shall provide the Company upon request the following services
         to support the direct staff of the Company:

                           (i) general advice and assistance concerning the
                  design, marketing and construction of projects of the Company;

                           (ii) general referrals to all contacts and resources
                  in the construction industry, especially but not limited to
                  potential clients on the Company's development projects; and

                           (iii) construction services and ancillary equipment
                  of the type provided generally to its customers for
                  installation of fiber optic systems.

         All services provided to the Company pursuant to Section 1.5(a)(iii)
         shall be provided at a cost to the Company equal to Cost (as
         hereinafter defined) plus twenty-five percent (25%). For purposes
         hereof, "Cost" shall mean the actual allocated cost of Michels, as
         determined by its accountants, including the costs of materials,
         supplies, equipment, labor and overhead and including allocation of a
         reasonable amount of administrative services. All services other than
         those specified in this Section 1.5(a)(iii) shall be provided at no
         cost to the Company.

                  (b) Notwithstanding the good faith commitment of Michels to
         support and assist the Company, Michels shall not be required to
         provide any services until the Company has used its best efforts to
         exhaust any and all other alternatives, Michels shall not have any
         obligation to suspend or otherwise delay any work on any other project
         for any customer in order to provide such services, whether incurring a
         penalty or not, and Michel's obligations to provide any such services
         shall be subject to the availability of necessary personnel (both
         management and crew), equipment and supplies. The Company shall provide
         as much notice as is practicable in advance of requesting services
         hereunder. The sufficiency of the services and the control and
         management of any and all aspects of any services shall be determined
         and controlled by Michels.

                  (c) The obligations of Michels under this Section 1.5 shall
         expire on December 31, 2002.

                  1.6 EXCLUSIVITY; NONCOMPETITION.

                  (a) Neither Mi-Tech, Michels nor any of their respective
         Affiliates (collectively, the "Michel's Group") shall undertake any
         project within the Company's Scope of Business, except through the
         Company and no member of the Michel's Group shall acquire an ownership
         interest in, or render advice or assistance to, or engage in any
         business, incorporated or otherwise, which undertakes such projects,
         except that, beginning on the earlier of April 15, 2000 or the date
         that is 12 months after the closing of the IPO any member of the
         Michel's Group may engage in telecommunications construction projects,
         including, without limitation, the construction of

                                      -5-
<PAGE>

         telecommunication facilities for which one or more members of the
         Michel's Group receives consideration, directly or indirectly, in the
         form of, in whole or in part, the securities (including, but not
         limited to common equity, partnership interests, warrants, debt and
         convertible instruments) or personal or real property of any of the
         owners or developers of such projects or facilities or securities or
         real or personal property of one or more Affiliates of such owners or
         developers; PROVIDED THAT:

                  (i)      no member or members of the Michel's Group,
                           individually or together, shall be permitted to
                           receive consideration in the form of such securities
                           if the receipt of such securities would result in a
                           member or members of the Michel's Group, individually
                           or together, beneficially owning securities, directly
                           or indirectly representing Control of the issuer of
                           such securities; and

                  (ii)     if a member of the Michel's Group receives, or has
                           entered into a legally binding contract to receive,
                           title to such property in the form of
                           telecommunications assets (whether conduits, ducts,
                           fiber cable, coaxial cable, bandwidth or otherwise)
                           in the Territory, WFI shall have a right of first
                           refusal to purchase such assets (the "Right of First
                           Refusal"), which Right of First Refusal shall be on
                           the following terms:

                           A.       Michels and Mi-Tech shall not, and shall
                                    cause the other members of the Michel's
                                    Groups not to, sell, transfer or otherwise
                                    dispose of, or offer to sell, transfer or
                                    otherwise dispose of, all or any part of
                                    such assets, except in compliance with the
                                    terms of this Right of First Refusal.

                           B.       Mi-Tech and Michels shall provide notice in
                                    writing (a "Clause B "Offer") to WFI of the
                                    receipt by any member of the Michel's Group
                                    of any such assets, such notice to be
                                    provided within 30 days of such receipt. The
                                    Clause B Offer shall provide reasonable
                                    particulars of the nature of such assets,
                                    and shall state the price (expressed only in
                                    lawful money of the United States) and other
                                    terms (such other terms shall be reasonable
                                    in the circumstances) on which such member
                                    of the Michel's Group is prepared to sell
                                    all or any part of such assets to WFI.
                                    Michels and Mi-Tech shall forthwith provide
                                    such additional information on such assets
                                    as WFI may reasonably request. The Clause B
                                    Offer shall be open for acceptance by WFI
                                    for a period of 30 days after its receipt by
                                    WFI. WFI may accept the Clause B Offer as to
                                    all or any contiguous part of such assets.
                                    If and to the extent the Clause B Offer is
                                    not accepted, the applicable member of the
                                    Michel's Group may sell, transfer, or
                                    otherwise dispose of such assets, as
                                    described in the Clause B Offer, to any
                                    other person, firm or corporation, but only
                                    for consideration and on terms not more
                                    favorable to such person, firm or
                                    corporation than those set out in the Clause
                                    B Offer, and

                                      -6-
<PAGE>

                                    only within a period of six months after the
                                    expiration of the period for acceptance by
                                    WFI and, if such member of the Michel's
                                    Group does not do so, the provisions of this
                                    Clause (B) will again become applicable to
                                    the sale, transfer or other disposition of
                                    such assets, and so on from time to time.

                           C.       If, during the six month period referred to
                                    in Clause (B), the applicable member of the
                                    Michel's Group wishes to transfer such
                                    assets to a third party (the "Third Party")
                                    at a price or on terms more favorable than
                                    the price and terms specified in the last
                                    Offer by such member of the Michel's Group
                                    to WFI under Clause (B), then such member of
                                    the Michel's Group shall deliver to WFI a
                                    notice in writing (the "Clause C Offer")
                                    together with a copy of the agreement that
                                    such member of the Michel's Group proposes
                                    to enter into with such third party (the
                                    "Third Party Agreement"). The Clause C Offer
                                    shall be an offer to sell to WFI all or part
                                    of such assets that are the subject matter
                                    of the Third Party Agreement on the terms
                                    and conditions referred to in the Third
                                    Party Agreement. Michel's and Mi-Tech shall
                                    forthwith provide to WFI such additional
                                    information on such assets as WFI may
                                    reasonably request. The Offer shall be open
                                    for acceptance by WFI for a period of 10
                                    Business Days (as defined in Clause (D))
                                    after its receipt by WFI. WFI may accept the
                                    offer as to all or any contiguous part of
                                    such assets. If and to the extent that the
                                    Clause C Offer is not accepted, the
                                    applicable member of the Michel's Group may
                                    transfer such assets, as described in the
                                    Clause C Offer, to the Third Party at the
                                    price and terms specified in the Third Party
                                    Agreement and, if the applicable member of
                                    the Michel's Group does not do so, the
                                    provisions of Clause (B) and this Clause (C)
                                    will again become applicable to the sale,
                                    transfer or other disposition of such
                                    assets, and so on from time to time.

                           D.       The closing of any purchase and sale of
                                    assets to be effected as a result of the
                                    acceptance of a Clause B Offer or a Clause C
                                    Offer by WFI shall take place at the offices
                                    of WFI at a date and time that is mutually
                                    acceptable to the applicable member of the
                                    Michel's Group, or, if no date and time for
                                    closing are so agreed upon, the time for
                                    closing shall be 11:00 a.m. (Vancouver, B.C.
                                    time) on the 20th Business Day following the
                                    acceptance of the Offer by WFI. For the
                                    purposes of this Clause (C) and Clause (D),
                                    "Business Day" means any day other than a
                                    Saturday and Sunday or a day when commercial
                                    banks in Vancouver, British Columbia, are
                                    required to be closed. At the time of
                                    closing, the applicable member of the
                                    Michels Group shall deliver or cause to be
                                    delivered to WFI or its nominee such
                                    transfer documents as WFI may reasonably
                                    request to transfer good and marketable
                                    title in such

                                      -7-
<PAGE>

                                    assets to WFI or its nominee, free and clear
                                    of any mortgage, lien, charge, pledge,
                                    hypothecation, security interest,
                                    encumbrance, restriction, covenant, right,
                                    demand or adverse claim of any kind, and the
                                    members of the Michels Group shall execute
                                    and deliver any further instruments or
                                    documents and take all such further actions
                                    as WFI may reasonably request in order to
                                    evidence or effect such transfer, against
                                    delivery by WFI or its nominee of payment of
                                    the purchase price for such assets.

                           E.       Except with respect to any Clause B Offer or
                                    Clause C Offers that have been made prior to
                                    December 31, 2002 (or that were required to
                                    have been made in accordance with the terms
                                    of this Agreement prior to such date), the
                                    obligations of Mi-Tech and Michels under
                                    this Section 1.6 shall expire on December
                                    31, 2002.

                  (b) Notwithstanding the foregoing, the Parties acknowledge and
         agree that Worldwide and Michels are leading construction contractors
         with special expertise in telecommunications construction (the "Core
         Business"). The Parties expressly agree that no provision of this
         Agreement or any other agreement between them shall be interpreted as
         to restrain or in any manner impede Michels or any member of the
         Michel's Group, Ledcor or Worldwide from performing such Core Business,
         for consideration consisting of cash or cash equivalents, except that
         until December 31, 2002, Michels and Mi-Tech shall, and shall cause the
         other members of the Michels Group to, use their good faith reasonable
         efforts not to perform telecommunications construction on the same
         right of way as a competing contractor on contracts in excess of 50
         miles within 50 miles of any point along a contiguous 50-mile segment
         of an Active Company Project. For purposes of this Section 1.6(b), an
         "Active Company Project" shall mean any project being undertaken by the
         Company with respect to which the Company has secured the legal right
         to commence construction on a contiguous 50 or more miles segment of
         the route (including attempting to own or license the applicable right
         of way and to obtain all building and construction permits and
         franchises for such segment), has commenced construction with respect
         to such contiguous 50 or more miles segment, and has executed at least
         one contract with a purchaser of strands."

                  3.4 ADDITIONAL FIBER OPTIONS.

                  (a) Mi-Tech provided, and the original execution of this
Agreement constituted, an option to the Company to purchase from Mi-Tech and its
Affiliates 24 strands of the existing Montreal to Albany fiber optic build owned
by Mi-Tech and its Affiliates, at a price and on terms no less favorable than
the price paid by any third party for the purchase of an equivalent number of
strands of the Montreal to Albany build. Such option was to be exercisable
commencing on the date such strands were available and was to terminate one year
thereafter; provided, that if no third party had purchased an equivalent number
of strands of the Montreal to Albany build prior to exercise of the option, the
exercise price and terms upon which the option was to be exercisable was to be
as mutually agreed by Mi-Tech and the Company.

                                      -8-
<PAGE>

                  (b) Mi-Tech and the Company acknowledge and agree that the
Company has exercised such option and that Mi-Tech and the Company have reached
agreement on the principal terms applicable to the purchase of such strands.
Mi-Tech and the Company shall negotiate reasonably and in good faith to conclude
a definitive agreement for such purchase.

                  14.10 DEFINITIONS

                  The following terms shall have the following meanings:

                  "Affiliate" means any Person that directly or indirectly
         controls, or is under common control with, or is controlled by another
         Person, where "control" means the possession, directly or indirectly,
         of more than fifty percent (50%) of the combined voting power of all
         outstanding securities, or the direction of management or policies
         (whether through ownership of securities or partnership or other
         ownership interests, by contract or otherwise) and shall be deemed to
         include senior executive officers of Mi-Tech or Michels.

                  "Company", for the purposes of Sections 1.4, 1.5 and 1.6,
         shall include the Company and its Affiliates.

                  "Control" shall mean, for the purpose of Section 1.6(a)(i),
         the ownership, possession or control, directly or indirectly, of:

                  (i)      5% of the issued and outstanding securities of
                           Williams Communications Group, Inc., Broadcasting
                           Communications Services Inc., Global Crossing Ltd.,
                           Colt Telecom Group plc, Level 3 Communications, Inc.,
                           Qwest Communications Corporation, GST
                           Telecommunications Inc., Metromedia Fiber Network,
                           Inc. or their publicly traded Affiliates; or;

                  (ii)     securities representing 50% or more of the combined
                           voting power of all outstanding securities of the
                           issuer, or the direction of management policies
                           (whether through ownership of securities or
                           partnership or other ownership interests, by contract
                           or otherwise); or

                  (iii)    securities representing 50% or more of the combined
                           equity of all outstanding securities of the issuer.

                  "Person" means any natural person, partnership, corporation or
other legal entity.

                  Capitalized terms used above and not defined shall have the
meaning set forth in the Shareholders' Agreement.

                  Section 8. IPO DATE. In the event the IPO is terminated or
does not close on or before June 1, 2000 thereby preventing the conversion of
the Company Shares into Class A Subordinate Voting Shares pursuant to this
Agreement by or before June 1, 2000, this Agreement shall be null and void and
the Shareholders' Agreement shall remain in full force and effect as if

                                      -9-
<PAGE>

the IPO Notice (as defined in the Shareholders' Agreement) provided by 360 on
November 19, 1999 had never been provided.

                  Section 9. REPRESENTATIONS AND WARRANTIES OF 360. 360 hereby
represents and warrants to Mi-Tech and Michels as of the date hereof and, unless
otherwise provided, as of the Closing Date as follows:

                  (a) 360 is a corporation, duly organized, validly existing and
         in good standing under the CANADA BUSINESS CORPORATIONS ACT, and has
         all requisite corporate power and authority to enter into and carry out
         the transactions contemplated by this agreement.

                  (b) The execution and delivery by 360 of this Agreement, the
         Registration Rights Agreement and the Closing Escrow Agreement
         (collectively, "360 Transaction Documents") and the performance by 360
         of its obligations hereunder and thereunder has been duly authorized by
         all requisite corporate action on the part of 360. Each 360 Transaction
         Document constitutes a legal, valid and binding agreement of 360,
         enforceable against 360 in accordance with its terms except to the
         extent that enforceability may be limited by bankruptcy, insolvency or
         other similar laws affecting creditors' rights generally and by
         equitable principles generally, whether enforced in a court of law or
         at equity.

                  (c) The execution, delivery and performance by 360 of the 360
         Transaction Documents and the consummation by 360 of the transactions
         contemplated thereby will not (i) violate any provision of law,
         statute, rule or regulation, or any ruling, writ, injunction, order,
         judgment or decree of any court, administrative agency or other
         governmental body applicable to it, or any of its properties or assets;
         (ii) conflict with or result in any breach of any of the terms,
         conditions or provisions of, or constitute (with due notice or lapse of
         time, or both) a default (or give rise to any right of termination,
         cancellation or acceleration) under any contract to which 360 is a
         party that would materially adversely affect 360's ability to
         consummate the transactions contemplated by any 360 Transaction
         Document or perform its obligations under any Transaction Document; or
         (iii) violate its constating documents.

                  (d) The authorization, issuance, sale and delivery of the
         Class A Subordinate Voting Shares to Mi-Tech and Blair pursuant to this
         Agreement have been duly authorized by all requisite corporate action
         on the part of 360, and when issued, sold and delivered in accordance
         with this Agreement, will be validly issued and outstanding, fully paid
         and nonassessable with no personal liability attaching to the ownership
         thereof and not subject to preemptive or similar rights of the
         shareholders of 360 or others, except as set out in the Shareholders
         Agreement and the 360 Transaction Documents.

                  (e) Assuming the accuracy of the representations and
         warranties contained in Section 10 hereof in the case of Mi-Tech and
         the representations and warranties made by Blair in the separate
         agreement referenced in Section 11 hereof, in the case of Blair, the
         offer, sale and/or the issuance and delivery of the Class A Subordinate
         Voting Shares to

                                      -10-
<PAGE>

         Mi-Tech and to Blair as contemplated herein is exempt from the
         prospectus and registration requirements under applicable securities
         laws.

                  (f) No permit, authorization, consent or approval of or by, or
         any notification of or filing with, any government, regulatory
         authority, governmental department, agency, commission, board,
         tribunal, crown corporation, or court or other law, rule or
         regulating-making entity having or purporting to have jurisdiction on
         behalf of any nation, or province or state or other subdivision thereof
         or any municipality, district or other subdivision thereof; (a
         "Governmental Authority") or any individual, sole proprietorship,
         general, limited or any other partnership, limited liability company,
         unincorporated association, unincorporated syndicate, unincorporated
         organization, trust, body corporate, or other entity, and a natural
         person in such person's capacity as trustee, executor, administrator or
         other legal representative (collectively, with Governmental Authority,
         a "Person") is required in connection with the execution, delivery and
         performance by 360 of any 360 Transaction Document, the consummation by
         360 of the transactions contemplated hereby or thereby, or the
         issuance, sale or delivery of the Class A Subordinate Voting Shares to
         Mi-Tech and Blair (other than such notifications or filings required
         under applicable securities laws, if any, which shall be made by 360 on
         a timely basis and other than provided for in any 360 Transaction
         Document).

                  (g) 360 acknowledges and agrees that the foregoing
         representations, warranties and covenants set out herein are made by
         360 with the intent that they be relied upon by Mi-Tech in determining
         its willingness to effect the Exchange. 360 further agrees that by
         accepting the Company Shares, 360 shall be representing and warranting
         that the foregoing representations and warranties are true as at the
         Closing Date with the same force and effect as if they had been made by
         360 at the Closing Date. 360 undertakes to notify Mi-Tech in writing of
         any change in any representation, warranty or other information
         relating to 360 set forth herein that takes place prior to the Closing
         Date.

                 Section 10. REPRESENTATIONS AND WARRANTIES OF MICHELS AND
MI-TECH. Michels and Mi-Tech represent, warrant and acknowledge to 360 as of the
date hereof and, unless otherwise provided, as of the Closing Date, as follows:

                  (a) Mi-Tech is acquiring Class A Subordinate Voting Shares as
         principal with an aggregate acquisition cost to Mi-Tech of not less
         than C$150,000 and is purchasing the Class A Subordinate Voting Shares
         for investment only and not with a view to resale or distribution in
         violation of applicable securities laws.

                  (b) Mi-Tech, if a "U.S. Person" (as defined in Regulation S
         under the United States Securities Act of 1993, as amended (the "1933
         Act"), is an "Accredited Investor" (as defined in Rule 501 under the
         1933 Act). Mi-Tech is acquiring the Class A Subordinate Voting Shares
         for its own account, for investment purposes only and not with a view
         to any resale, distribution or other disposition of the Class A
         Subordinate Voting Shares in violation of the United States securities
         laws. If Mi-Tech decides to offer, sell or otherwise transfer any of
         the Class A Subordinate Voting Shares, it will not

                                      -11-
<PAGE>

         offer, sell or otherwise transfer any of such Class A Subordinate
         Voting Shares directly or indirectly, unless such sale is made in
         compliance with, or in reliance of an exemption from, the 1933 Act and
         applicable state securities laws. Mi-Tech understands and agrees that
         there may be material tax consequences to Mi-Tech of an acquisition or
         disposition of the Class A Subordinate Voting Shares and that, except
         as expressly set forth in this Agreement, 360 gives no opinion and
         makes no representation with respect to the tax consequences to
         Mi-Tech under United States, state, local or foreign tax law of
         Mi-Tech's acquisition or disposition of such securities.

                  (c) Mi-Tech acknowledges that no offering memorandum,
         prospectus or registration statement has been prepared or filed by 360
         with any securities commission or similar authority in any jurisdiction
         in connection with the Exchange and the issue and sale of Class A
         Subordinate Voting Shares to Mi-Tech is subject to such sale being
         exempt from the requirements of applicable securities laws as to the
         filing of an offering memorandum, prospectus or registration statement.

                  (d) Mi-Tech has received and reviewed 360's Registration
         Statement on Form F-1 as filed with the Securities and Exchange
         Commission of the United States on January 28, 2000 and has had the
         opportunity to discuss the disclosure therein, as well as developments,
         concerning 360 and the industry in which it competes, with
         representatives of 360 and has received complete answers to all of its
         questions. Mi-Tech is not relying on any written or oral
         representations made by 360, except to the extent expressly provided in
         this Agreement.

                  (e) To Mi-Tech's knowledge, the Class A Subordinate Voting
         Shares were not advertised in printed media of general and regular paid
         circulation, radio or television and Mi-Tech has not purchased the
         Class A Subordinate Voting Shares as a result of any form of general
         solicitation or general advertising, including advertisements,
         articles, notices or other communications published in any newspaper,
         magazine or similar media or broadcast over radio, or television, or
         any seminar or meeting whose attendees have been invited by general
         solicitation or general advertising.

                  (f) Mi-Tech has such knowledge and experience in financial and
         business affairs as to be capable of evaluating the merits and risks of
         the investment hereunder and is able to bear the economic risk of loss
         of such investment.

                  (g) Mi-Tech understands that the Class A Subordinate Voting
         Shares have not been and will not be registered under the 1933 Act, as
         amended, or the securities laws of any state of the United States and
         that the sale contemplated hereby is being made in reliance on an
         exemption from such registration requirements and Mi-Tech understands
         and agrees that the Class A Subordinate Voting Shares may not be traded
         in the United States or by or on behalf of a U.S. Person or a person in
         the United States unless permitted by the terms of the 360 Shareholders
         Agreement and either registered under the 1933 Act and any applicable
         state securities laws or an exemption from such registration
         requirements is available and that certificates representing the Class
         A Subordinate Voting Shares will bear a legend to such effect.

                                      -12-
<PAGE>

                  (h) Mi-Tech understands that no prospectus has been or will be
         filed in accordance with the securities laws, and the regulations
         thereunder, of, and the applicable published rules, policy statements,
         blanket orders and notices of the securities regulatory authorities in
         the provinces and territories of Canada (the "Canadian Securities
         Laws") qualifying the distribution of the Class A Subordinate Voting
         Shares in any province or territory of Canada and that the Class A
         Subordinate Voting Shares may not be offered or sold by Mi-Tech in any
         province or territory of Canada except pursuant to an applicable
         exemption from the prospectus requirements of the applicable Canadian
         Securities Laws and from a dealer appropriately registered under the
         applicable Canadian Securities Laws or, other than in Ontario, in
         accordance with an exemption from the registration requirements of such
         laws.

                  (i) Neither Mi-Tech nor Michels has employed any broker or
         finder in connection with the transactions contemplated by this
         agreement.

                  (j) The execution, delivery and performance by Mi-Tech and
         Michels of this Agreement, and the execution, delivery and performance
         by Mi-Tech of the 360 Transaction Documents and the Agreement to be
         Bound by the 360 Shareholders Agreement (collectively the "Mi-Tech
         Transaction Documents") and the consummation by Mi-Tech and Michels of
         the transactions contemplated hereby and thereby will not (i) violate
         any provision of law, statute, rule or regulation, or any ruling, writ,
         injunction, order, judgment or decree of any court, administrative
         agency or other governmental body applicable to it, or any of its
         properties or assets; (ii) conflict with or result in any breach of any
         of the terms, conditions or provisions of, or constitute (with due
         notice or lapse of time, or both) a default (or give rise to any right
         of termination, cancellation or acceleration) under any contract to
         which Mi-Tech or Michels is a party that would materially adversely
         affect their ability to consummate the transactions contemplated by
         this agreement or perform their obligations under any Mi-Tech
         Transaction Documents; or (iii) violate its constating documents.

                  (k) Mi-Tech is duly organized and validly existing under the
         laws of the jurisdiction of its organization, and Michels is duly
         incorporated and validly existing under the laws of its jurisdiction of
         incorporation, and each has all partnership, corporate or company
         power, as applicable, and authority to enter into and carry out the
         transactions contemplated by each of the Mi-Tech Transaction Documents
         and the performance by them of their obligations hereunder and
         thereunder. Each of the Mi-Tech Transaction Documents has been duly
         authorized by all necessary action on the part of Mi-Tech and Michels.
         Each of the Mi-Tech Transaction Documents constitutes a valid and
         binding agreement of Mi-Tech, and this Agreement constitutes a valid
         and binding agreement of Michels, enforceable against Mi-Tech and
         Michels, as the case may be, in accordance with its terms except to the
         extent that enforceability may be limited by bankruptcy, insolvency or
         other similar laws affecting creditors' rights generally and by
         equitable principles generally whether enforced in a court of law or at
         equity.

                  (l) No permit, authorization, consent or approval of or by, or
         any notification of or filing with, any Person is required in
         connection with the execution, delivery and

                                      -13-
<PAGE>

         performance by Mi-Tech or Michels of any Mi-Tech Transaction Document,
         the consummation by Mi-Tech or Michels of the transactions
         contemplated hereby or thereby, or the issuance, purchase or delivery
         of the Mi-Tech Shares (other than such notifications or filings
         required under applicable securities laws, if any, which shall be made
         on a timely basis and other than provided for in any Mi-Tech
         Transaction Document).

                  (m) In respect of the Company Shares (i) no Person, other than
         360 or WFN, has any written or oral agreement or option or any right or
         privilege (whether by law, pre-emptive or contractual) capable of
         becoming an agreement or option for the purchase or acquisition from
         Mi-Tech of any of the Company Shares, (ii) no Person other than 360 or
         WFN has any agreement or option or any right or privilege (whether by
         law, pre-emptive or contractual) capable of becoming an agreement,
         including convertible securities, warrants or convertible obligations
         of any nature, for the purchase, subscription, allotment or issuance of
         any unissued shares or other securities of the Company, (iii) Mi-Tech
         is the registered and beneficial owner of the Company Shares, with good
         and marketable title thereto, free and clear of any mortgage, lien,
         security interest, pledge, escrow, charge, or other encumbrance of any
         kind or character whatsoever (an "Encumbrance") and, without limiting
         the generality of the foregoing, none of the Company Shares are subject
         to any voting trust, shareholder agreement or voting agreement other
         than the Shareholders Agreement, and (d) upon completion of the
         transaction contemplated by this agreement, all of the Company Shares
         will be owned by 360 as the registered and beneficial owner, with a
         good and marketable title thereto free and clear of any Encumbrance
         except for such Encumbrances as may have been granted by 360.

                  (n) Mi-Tech and Michels acknowledge and agree that the
         foregoing representations, warranties and covenants set out herein are
         made by Mi-Tech and Michels with the intent that they be relied upon in
         determining the suitability of Mi-Tech as a purchaser of Class A
         Subordinate Voting Shares. Mi-Tech and Michels further agree that by
         Mi-Tech accepting the Class A Subordinate Voting Shares, Mi-Tech and
         Michels shall be representing and warranting that the foregoing
         representations and warranties are true as at the Closing Date with the
         same force and effect as if they had been made by Mi-Tech and Michels
         at the Closing Date and shall continue in full force and effect
         notwithstanding any subsequent disposition by Mi-Tech of the Class A
         Subordinate Voting Shares. Mi-Tech and Michels undertake to notify 360
         in writing of any change in any representation, warranty or other
         information relating to Mi-Tech or Michels set forth herein that takes
         place prior to the Closing Date.

                                      -14-
<PAGE>

                  Section 11. BLAIR'S REPRESENTATIONS AND ACKNOWLEDGMENT. On or
prior to the Closing, Mi-Tech shall cause Blair to execute a Representation and
Acknowledgment in the form attached as EXHIBIT E.

                  Section 12. OTHER COVENANTS.

                  (a) COOPERATION BY PARTIES; SATISFACTION OF CLOSING
CONDITIONS. From the date hereof and prior to the Closing, each party shall use
its commercially reasonable efforts, and will cooperate with each other, to
secure as promptly as practicable all necessary consents, approvals,
authorizations, exemptions and waivers from third parties as shall be required
to enable the parties hereto to effect the transactions contemplated hereby,
provided however that 360 shall not by this section be obliged to proceed with
an IPO unless 360 decides to proceed, in its sole and absolute discretion.

                  (b) 360 SHAREHOLDERS AGREEMENT AND REGISTRATION RIGHTS
AGREEMENT. As soon as practicable after the execution of this Agreement, 360 and
Mi-Tech shall execute and deliver to the Closing Escrow Agent pursuant to the
Closing Escrow Agreement (a) an agreement by which Mi-Tech agrees to be bound by
the 360 Shareholders Agreement, (b) the Registration Rights Agreement, and (c)
such other documents and instruments as required pursuant to the Closing Escrow
Agreement.

                  Section 13. ACKNOWLEDGEMENT OF INTENDED AMENDMENT TO ARTICLES
OF 360. Mi-Tech acknowledges that it has been advised that it is the intention
of 360 to request its shareholders to amend the Articles of 360, to alter the
share capital of 360, and to alter the rights, privileges, restrictions and
conditions attached to each class of shares in the share capital of 360, as
described in the draft Articles of Amendment (to be attached as EXHIBIT D as
soon as practicable after the execution of this Agreement), prior to, or
concurrently with, the IPO.

                  Section 14. CONDITIONS TO THE EXCHANGE.

                  (a) CONDITIONS TO OBLIGATIONS OF EACH PARTY. The respective
obligations of each party hereto to consummate the transactions contemplated
hereby shall be subject to the satisfaction at or prior to the Closing Date of
the following conditions, any or all of which may be waived in writing, in whole
or in part, by 360 or Mi-Tech, to the extent permitted by applicable law:

                  (b) No Governmental Authority shall have enacted, issued,
promulgated or enforced any statute, rule, regulation, executive order, decree,
judgment, preliminary or permanent injunction or other order which is in effect
and which prohibits, enjoins or otherwise restrains the consummation of the
transactions contemplated hereby; provided, that the parties shall use
commercially reasonable efforts to cause any such decree, judgment, injunction
or order to be vacated or lifted.

                  (c) Each consent or approval from, or filing with any Person,
required to be obtained or made and any waiting period required to have expired
in order to consummate the

                                      -15-
<PAGE>

transactions contemplated by this agreement at the Closing shall have been
obtained, or made, as the case may be, and any such waiting period shall have
expired.

                  (d) The events described in Section 8 shall not then have
occurred.

                  Section 15. CONDITIONS TO OBLIGATIONS OF MI-TECH. The
obligations of Mi-Tech to consummate the Exchange shall be subject to the
satisfaction or waiver, on or prior to the Closing Date, of the following
conditions:

                  (a) Each representation and warranty made by 360 herein shall
         be true and correct, in all material respects on and as of the Closing
         Date, with the same force and effect as though such representation and
         warranty had been made on and as of the Closing Date, except for
         changes permitted or contemplated by this agreement and except for each
         representation and warranty that is made as of a specific date or time,
         which shall be true and correct in all material respects, only as of
         such specific date or time.

                  (b) 360 shall have complied in all material respects with all
         its agreements and covenants contained herein required to be performed
         at or prior to the Closing to the extent such agreements and covenants
         relate to the Closing.

                  (c) 360 shall have delivered to Mi-Tech a certificate executed
         by a senior executive officer of 360, which shall be satisfactory in
         form and substance to Mi-Tech, certifying that the conditions set forth
         in paragraphs (a) and (b) have been met.

                  Section 16. CONDITIONS TO THE OBLIGATIONS OF 360. The
obligations of 360 to consummate the Exchange shall be subject to the
satisfaction or waiver, on or before the Closing Date, of the following
conditions:

                  (a) Each representation and warranty made by Mi-Tech and
         Michels herein shall be true and correct in all material respects, with
         the same force and effect as though such representation and warranty
         had been made on and as of the Closing Date, except for changes
         permitted or contemplated by this agreement and except for each
         representation and warranty that is made as of a specific date or time,
         which shall be true and correct, in all material respects, only as of
         such specific date or time.

                  (b) Mi-Tech and Michels shall have complied in all material
         respects with all of its agreements and covenants contained herein
         required to be performed at or prior to the Closing to the extent such
         agreements and covenants relate to the Closing.

                  (c) Each of Mi-Tech and Michels shall have delivered to 360 a
         certificate executed by a senior executive officer, which shall be
         satisfactory in form and substance to 360, certifying that the
         conditions set forth in paragraphs (a) and (b) have been met.

                  Section 17. SURVIVAL OF REPRESENTATIONS, WARRANTIES,
AGREEMENTS AND COVENANTS. All representations and warranties in this Agreement
shall survive the Closing indefinitely and shall in no way be affected by any
investigation of the subject matter thereof made by or on behalf of 360 or
Mi-Tech. All statements contained in any certificate or other

                                      -16-
<PAGE>

instrument delivered by 360 pursuant to this Agreement shall constitute
representations and warranties by 360 under this agreement. All statements
contained in any certificate or other instrument delivered by Mi-Tech or Michels
pursuant to this agreement shall constitute representations and warranties by
the Mi-Tech or Michels, as the case may be, under this agreement.

                  Section 18. EXPENSES. Each of the parties shall pay all the
costs and expenses incurred by it or on its behalf in connection with this
agreement and the consummation of the transactions contemplated hereby.

                  Section 19. CONFIDENTIALITY.

                  (a) The parties hereto hereby covenant and agree with each
other that, subject to subsection 19(c), they will not disclose, or allow their
respective directors, officers, employees agents, representatives or
consultants, if any, to disclose, to any Person, any of the terms, conditions or
other facts of or concerning this Agreement or the existence of this agreement
without the prior written consent of the other parties hereto. The parties
hereto hereby further covenant and agree with each other that they will at all
times keep, and all reasonable and normal steps to cause their respective
directors, officers, employees, agents, representatives and consultants, if any,
to at all times keep, all information of every nature and kind whatsoever
regarding 360, Mi-Tech and their affiliates including, without limitation,
information on and/or copies of material agreements, corporate, proceedings and
other data, whether transferred in writing, orally, visually, electronically or
by any other means, and all analyses, studies, compilations, data, supplies or
other documents prepared by any party or 360 or Mi-Tech or their affiliates
containing, or based in whole or in part on, any such information or reflecting
any such information, strictly confidential, and shall at no time convey or
disclose, or knowingly allow their respective directors, officers, employees,
agents, representatives or consultants, if any, to convey or disclose, in any
manner whatsoever, to any person, firm or corporation any of the aforesaid
information. The parties hereto hereby further covenant and agree with each
other not to use, and to take all normal and reasonable steps to ensure that
their respective directors, officers, employees, agents, representatives or
consultants, if any, do not use, any of the aforesaid information except for the
purposes of exercising their respective rights and performing their respective
obligations under this agreement. The obligations in this Section 19(a) shall
not apply to: (i) information that, at the time of its disclosure, is publicly
available; (ii) information that, after the time of its disclosure, becomes
publicly available other than through a breach of the confidentiality
obligations of this Agreement; (iii) information that was, is, or becomes
available to a party on a non-confidential basis, which a party obtains from a
third person who is not known by such party as being under confidentiality
obligations respecting such information; or (iv) information that, at the time
of such disclosure, the receiving party already had in its own possession as
evidenced by such party's written records.

                  (b) Each party hereto hereby covenants and agrees with each
other party hereto to indemnify and hold harmless each other party hereto from
any losses, damages, charges, fees or expenses (including reasonable lawyers'
fees) arising out of or resulting from any breach of subsection 19(a). The
parties hereto hereby further covenant and agree with each other not to do any
act, or knowingly allow their respective directors, officers, employees, agents,

                                      -17-
<PAGE>

representatives or consultants, if any, to do any act, to infringe upon any
copyright, patent, industrial design or other proprietary rights of 360 or its
affiliates.

                  (c) The parties hereto hereby further covenant and agree with
each other that, in the event they, or their respective directors, officers,
employees, agents, representatives or consultants, if any, become legally
compelled to disclose any of the aforesaid information, or are advised by their
respective legal counsel that such disclosure is required to comply with
applicable law, to immediately provide the other parties with written notice so
that the other parties may seek a protective order or other appropriate remedy,
and to cooperate, and to cause their respective directors, officers, employees,
agents, representatives and consultants, if any, to cooperate, with the other
parties in any effort undertaken to obtain a protective order or other remedy.
Each party hereto hereby further covenants and agrees with each other party to,
in the event that such protective order or remedy is not obtained, furnish, and
to cause his directors, officers, employees, agents, representatives and
consultants, if any, to furnish, only that portion of the aforesaid information
which he is legally required to furnish, and to use his best efforts, and to
cause his directors, officers, employees, agents, representatives, and
consultants, if any, to use their best efforts, to obtain an assurance from the
recipient of any of the aforesaid information that confidential treatment will
be accorded to such information, to the extent that such assurance is available.
Notwithstanding the foregoing, each of the parties acknowledges that the parties
may be required to disclose the terms of this Agreement, and provide a copy of
this Agreement, in filings made by such party under applicable securities law,
and may have to disclose the aforesaid information in an open court in legal
proceedings between the parties, or between a party and others, and each of the
parties hereby consents to such disclosure and to the filing of a copy of this
Agreement for public viewing under filings required to be made by a party under
applicable securities law.

                  (d) Each party hereto hereby acknowledges to and covenants and
agrees with each other party hereto that a breach by it of any of its covenants
contained in this Section 19 may result in damages to each of the other parties
and that a monetary award would not adequately compensate for such damages, and,
accordingly, that in the event of any such breach, in addition to all other
remedies available in law or in equity, the other parties, or any of them, shall
be entitled as a matter of right to apply to a court of competent equitable
jurisdiction for such relief by way of restraining order, injunction, decree or
otherwise as may be appropriate to ensure compliance by it with Section 19.

                  (e) Each of the parties hereto hereby acknowledges to and
covenants and agrees with each of the other parties hereto that, notwithstanding
any provision of this Agreement, its covenants contained in Section 19 survive
any termination of this Agreement, whether or not it continues to hold shares in
the capital of 360.

                  Section 20. UNDERWRITTEN OFFERING - LOCK-UP OF SHARES. Mi-Tech
agrees, if requested in writing by the managing underwriter(s) of an IPO, not to
effect any sale (or in any other way, directly or indirectly, effect any
transfer, assignment, distribution, pledge, encumbrance or other disposition of,
either voluntarily or involuntarily, including the assignment or transfer of
voting rights, if any) (collectively, with "sale", a "Sale") of any shares or of
any equity securities (or securities convertible into or exchangeable for equity
securities) of 360,

                                      -18-
<PAGE>

including, without limitation, any Sale pursuant to Canadian Securities Laws or
Rule 144 under the U.S. Securities Act, (other than as part of such underwritten
public offering) during the time period requested by the managing underwriter(s)
not to exceed one year.

                  Section 21. RESTRICTIONS ON CONVERSION INTO VOTING SHARES. To
the extent required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended, and the rules and regulations promulgated thereunder (the "HSR
Act"), if Mi-Tech elects to convert its non-voting Shares into voting Shares,
Mi-Tech and (upon written request by Mi-Tech) 360 agree to file or cause to be
filed, as promptly as practicable after such request, with the United States
Federal Trade Commission and the Antitrust Division of the United States
Department of Justice, all reports and documents required to be filed by Mi-Tech
and 360 under the HSR Act concerning the conversion transaction and (b) promptly
comply with or cause to be complied with any requests by the United States
Federal Trade Commission or the Antitrust Division of the United States
Department of Justice for additional information concerning such transactions,
in order to obtain antitrust regulatory clearance as soon as possible. 360
agrees to request, and to cooperate with Mi-Tech in requesting, early
termination of any applicable waiting period under the HSR Act. All fees
required to be paid in connection with such filings shall be borne by 360.

                  Section 22. MODIFICATION OR AMENDMENT. The parties hereto may
modify or amend this Agreement only by written agreement duly executed and
delivered on behalf of the respective parties.

                  Section 23. WAIVER OF CONDITIONS.

                  (a) IN WRITING. Any provision of this Agreement may be waived
if, and only if, such waiver is in writing and signed by the party against whom
the waiver is to be effective.

                  (b) FAILURE OR DELAY. No failure or delay by any party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege.
Except as otherwise herein provided, the rights and remedies herein provided
shall be cumulative and not exclusive of any rights or remedies provided by law.

                  Section 24. COUNTERPARTS. This Agreement may be executed in
any number of counterparts, each such counterpart being deemed to be an original
instrument, and all such counterparts shall together constitute the same
agreement.

                  Section 25. GOVERNING LAW. This Agreement shall be deemed to
be made in and in all respects shall be interpreted, construed and governed by
and in accordance with the laws of the State of New York without regard to the
conflict of law principles thereof.

                  Section 26. NOTICES. Notices, requests, instructions or other
documents to be given under this Agreement shall be in writing and shall be
deemed given, (i) when sent if sent by facsimile, provided that the fax is
promptly confirmed by telephone confirmation thereof, (ii) when delivered, if
delivered personally to the intended recipient, and (iii) one business day

                                      -19-
<PAGE>

later, if sent by overnight delivery via a national courier service, and in each
case, addressed to a party at the address for such party set forth below or to
such other persons or addresses as may be designated in writing by the party to
receive such notice:

                  (a)      If to 360, WFN, Ledcor Communications Ltd. or the
                           Company, to:

                           c/o 360networks inc.
                           #1510-1066 West Hastings Street
                           Vancouver, British Columbia V6E 3X1
                           Fax:     (604) 648-7747
                           Attn:    General Counsel

                           with a copy to:

                           Campney & Murphy
                           2100-1111 West Georgia Street
                           Vancouver, British Columbia  V7X 1K9
                           Fax:     (604) 688-0829
                           Attn:    Bruce Tattrie

                  (b)      If to Ledcor Inc. or Ledcor Industries, Inc., to:

                           Ledcor Industries Limited
                           Suite 1000, 1066 West Hastings Street West
                           Vancouver, British Columbia  V6E 3X1
                           Fax:     (604) 681-5372
                           Attn:    David Lede

                  (c)      If to Michels or Mi-Tech

                           Mi-Tech Communications, LLC
                           P.O. Box 128
                           Brownsville, WI  53006-0128
                           Fax:     (920) 583-3429
                           Attn:    Brian Johnson, Manager

                           with a copy to:

                           Michels Pipeline Construction, Inc.
                           P.O. Box 128
                           Brownsville, WI  53006-0128
                           Fax:     (920) 583-3429
                           Attn:    A. David Stegeman

                                      -20-
<PAGE>

                           and

                           Foley & Lardner
                           777 East Wisconsin Avenue
                           Milwaukee, WI  53202
                           Fax:     (414) 297-4900
                           Attn:    Marc J. Marotta

                  Section 27. ENTIRE AGREEMENT. This Agreement, the 360
Shareholders' Agreement, the documents delivered pursuant to the Closing Escrow
Agreement, the Shareholders' Agreement to the extent it survives, the Transfer
Agreement, dated as of December 31, 1998, and any other written agreement
between the parties not expressly terminated hereunder, constitute the entire
agreement among the parties hereto, and supersede all other prior agreements,
understandings, representations and warranties both written and oral, among the
parties, with respect to the subject matter hereof.

                  Section 28. SEVERABILITY. The provisions of this Agreement
shall be deemed severable and the invalidity or unenforceability of any
provision shall not affect the validity or enforceability or the other
provisions hereof.

                  Section 29. CAPTIONS. The captions herein are for convenience
of reference only, do not constitute part of this Agreement and shall not be
deemed to limit or otherwise affect any of the provisions hereof.

                  Section 30. ASSIGNMENT. This Agreement shall not be assignable
by operation of law or otherwise.

                  Section 31. DISPUTE RESOLUTION.

                  (a) RESOLUTION BY DISCUSSION BETWEEN PARTIES. The parties
hereto shall attempt to resolve any disputes arising out of the terms and
conditions of this Agreement by discussions between representatives of the
respective parties which representatives shall have the authority to take all
actions necessary for the resolution of such dispute. Such individuals shall
cooperate with each other for the purpose of resolving such disputes and shall
exchange such information as the other shall request for purposes thereof. If a
party desires to commence such discussions, it shall notify the other and upon
such notice the parties shall use their good faith efforts to resolve the
dispute within 30 days of such notice. Any dispute which cannot be resolved to
the satisfaction of such parties during such 30 day period may, upon written
notice by any such party, be submitted to arbitration in accordance with Section
31(b) below.

                  (b) ARBITRATION. All disputes, controversies and claims which
cannot be settled by mutual discussions as provided in Section 31(a) above may,
upon written notice by any party be submitted to arbitration with the American
Arbitration Association (the "AAA") in accordance with the rules of the AAA. The
arbitration shall be conducted by three arbitrators. One arbitrator shall be
appointed by 360 on behalf of itself and its affiliates and one arbitrator shall
be appointed by Mi-Tech on behalf of itself and its affiliates, and the two
appointed

                                      -21-
<PAGE>

arbitrators shall select a third arbitrator. If a party shall fail to appoint an
arbitrator, such party's arbitrator shall be selected in accordance with the
rules and procedures of the AAA. The arbitration shall take place in New York,
New York. Each of the parties agrees to provide such information as the
arbitrators shall request for purposes of resolving the dispute. Any award
issued by the arbitrators shall be final and binding on the parties. Judgment
upon such award may be entered in any court having jurisdiction. Each of the
parties shall bear its own costs in connection with the arbitration, unless the
arbitrators shall otherwise determine. Nothing in this Section 31 shall prevent
a party from seeking injunctive relief or other equitable or extraordinary
remedies from a court of competent jurisdiction at any time prior to, or during,
an arbitration initiated under the terms of this Agreement.

                  Section 32. ENFORCEMENT. The parties hereto agree that money
damages or other remedy at law would not be a sufficient or adequate remedy for
any breach or violation of, or a default under, this Agreement by them and that
in addition to all other monetary and other remedies available to them, each of
them shall be entitled to the fullest extent permitted by law to an injunction
restraining such breach, violation or default or threatened breach, violation or
default and to any other equitable relief, including, without limitation,
specific performance, without bond or other security being required.

                  Section 33. CURRENCY. Unless otherwise indicated, references
to "dollars", "$" or "US$" are to U.S. dollars and references to "C$" are to
Canadian dollars.

                  Section 34. NO PARTNERSHIP. The obligations of each of the
parties to this agreement are several and not joint. Nothing in this agreement
shall imply or be deemed to imply a partnership, joint venture or other
relationship between the parties.

                  Section 35. FURTHER ASSURANCES. At any time or from time to
time after the Closing, 360, on the one hand, and Mi-Tech and Michels, on the
other hand, agree to cooperate with each other, and at the request of the other
party, to execute and deliver any further instruments or documents and to take
all such further action as the other may reasonably request in order to evidence
or effectuate the consummation of the transactions contemplated hereby and to
otherwise carry out the intent of the parties hereunder.

               [THE REST OF THE PAGE IS INTENTIONALLY LEFT BLANK.]

                                      -22-
<PAGE>

                  IN WITNESS WHEREOF, this Agreement has been duly executed and
delivered by the duly authorized officers of the parties hereto as of the date
first written above.

                                           360NETWORKS INC.

                                           By: /s/ David Lede
                                              -----------------------
                                               (Title)

                                           WORLDWIDE FIBER NETWORKS LTD.

                                           By: /s/ David Lede
                                              -----------------------
                                               (Title)

                                           LEDCOR COMMUNICATIONS LTD.

                                           By: /s/ David Lede
                                              -----------------------
                                               (Title)

                                           LEDCOR INDUSTRIES, INC.

                                           By: /s/ David Lede
                                              -----------------------
                                               (Title)

                                           WORLDWIDE FIBER (USA) INC.

                                           By: /s/ David Lede
                                              -----------------------
                                               (Title)

                                      -23-
<PAGE>

                                           MI-TECH COMMUNICATIONS, LLC

                                           By: /s/ Brain P. Johnson
                                              -----------------------
                                               Brian P. Johnson, Manager

                                           LEDCOR INC.

                                           By: /s/ David Lede
                                              -----------------------
                                               (Title)

                                           MICHELS PIPELINE CONSTRUCTION, INC.

                                           By: /s/ Brain P. Johnson
                                              -----------------------
                                              Brian P. Johnson, Executive
                                               Vice President

                                      -24-
<PAGE>

                                    EXHIBIT B

                            CLOSING ESCROW AGREEMENT

THIS AGREEMENT is dated for reference the _ day of March, 2000.

AMONG:

                  360NETWORKS INC.
                  ----------------

                  (the "Corporation")

AND:

                  MI-TECH COMMUNICATIONS, LLC
                  ---------------------------
                  ("Mi-Tech")

AND:

                  MICHELS PIPELINE CONSTRUCTION, INC.
                  -----------------------------------

                  ("Michels")

AND:

                  CAMPNEY & MURPHY
                  ----------------

                  ("Campney")

WHEREAS:

A.       By a Share Exchange Agreement dated as of March 20, 2000 by and among
the Corporation, Worldwide Fiber Networks Ltd., Ledcor Communications Ltd.,
Ledcor Industries, Inc., Worldwide Fiber (USA), Inc., Mi-Tech, Ledcor Inc. and
Michels (the "Share Exchange Agreement"), Mi-Tech agreed to exchange its 50
shares of Class A Voting Preferred Stock and 50 shares of Non-Voting Common
Stock in the capital stock of Worldwide Fiber (USA), Inc. for Class A
Subordinate Voting Shares in the capital stock of the Corporation, the number of
such shares to be determined in the manner specified in the Share Exchange
Agreement.

B.       This Closing Escrow Agreement is entered into pursuant to the terms of
the Share Exchange Agreement.

IN CONSIDERATION of the mutual agreements in this Agreement, pursuant to the
obligations of the Corporation, Mi-Tech and Michels in the Share Exchange
Agreement, and subject to the terms and conditions specified in this Agreement,
the parties agree as follows:

<PAGE>

                                    ARTICLE 1
                                   DEFINITIONS

1.1      DEFINITIONS

         In this Agreement, including the recitals and the schedules, words
having a meaning defined in the Share Exchange Agreement will have the same
meaning when used in this Agreement and the following words and expressions have
the following meanings unless the context otherwise requires:

         "Closing Agenda" means the Closing Agenda attached as Schedule A.

         "Conditions Notice" has the meaning specified in Section 2.3.

         "Conditions Precedent" has the meaning specified in Section 2.2.

         "Escrow Documents" means the closing documents listed as document
         numbers -, - [LIST] in the Closing Agenda.

         "Escrow Release Notice" has the meaning specified in Section 2.3.

         "IPO Notice" has the meaning specified in Section 2.3.

         "Notice Deadline" has the meaning specified in Section 2.3.

          "Share Exchange Agreement" has the meaning specified in the Recitals.

         "Transaction Parties" means the Corporation, Mi-Tech and Michels.

                                   ARTICLE 2
                                 CLOSING ESCROW

2.1      DELIVERY OF ESCROW DOCUMENTS

         All of the Escrow Documents shall be signed by the applicable
Transaction Party or Transaction Parties, and the other parties thereto, as
applicable, with the number of copies specified in the Closing Agenda, left
undated, and delivered in escrow to Campney on or before March -, 2000 (or such
other time as may be agreed upon between the Transaction Parties), to be held in
escrow pursuant to the terms of this Agreement. The Escrow Documents shall not
be considered to have been delivered unless and until Campney has sent the
Escrow Release Notice in accordance with Section 2.3. With the consent of
Mi-Tech and Michels (such consent not to be unreasonably withheld or delayed),
the Corporation may from time to time replace an Escrow Document delivered by it
and, with the consent of the Corporation not to be unreasonably withheld,
Mi-Tech and Michels may from time to time replace an Escrow Document delivered
by either of them (by way of an example only, such a replacement might be
necessary if a representation in the Share Exchange Agreement was no longer
accurate, and an amendment to a bring down certificate was required as a
result).

                                      -2-
<PAGE>

2.2      CONDITIONS PRECEDENT TO THE EXCHANGE

         Notwithstanding that the Escrow Documents have been placed in escrow,
the obligations of the Corporation, Michels and Mi-Tech to complete the Share
Exchange Agreement shall continue to be subject to the condition precedents (the
"Conditions Precedent") set forth in Sections 14, 15 and 16 of the Share
Exchange Agreement, but, for greater clarity, there shall be no other conditions
precedent to the closing of the Share Exchange Agreement.

2.3      RELEASE FROM ESCROW FOR CLOSING

If, on or before June 1, 2000 (the "Notice Deadline"), Campney receives from the
Corporation a written notice (the "IPO Notice") that the IPO is about to close,
on the date of the IPO Notice, and that there are no conditions to the
completion of the closing of the IPO other than the closing of the Share
Exchange Agreement, such notice to also specify the IPO Price, then, provided
that, before sending the Escrow Release Notice in accordance with Section
2.3(b), Campney has not received notice in writing from Mi-Tech referring to
either Section 14 or Section 15 of the Share Exchange Agreement and advising
that it is the position of Mi-Tech, as the case may be, that one of the events
described in Sections 14 or 15 has failed to occur and that Mi-Tech does not
waive such condition (a "Conditions Notice"), Campney shall forthwith proceed
to:

         (a)      insert the date of the closing of the IPO in those documents
                  that are described as documents -, -, -, and - in the Closing
                  Agenda;

         (b)      send by fax to the Transaction Parties (at the fax numbers
                  specified in the Share Exchange Agreement) a notice in writing
                  advising that the Escrow Documents are by such notice released
                  from escrow (the "Escrow Release Notice"), and send by fax to
                  Mi-Tech and Michels photocopies of the IPO Notice;

         (c)      deliver to the Transaction Parties and their legal counsel the
                  Escrow Documents in accordance with the provisions for
                  delivery in the Closing Agenda.

2.4      DELIVERY OF SHARE CERTIFICATE

         Within three Business Days after the delivery by Campney of the Escrow
Release Notice, the Corporation shall deliver to Mi-Tech and to Blair the share
certificates described in, and in accordance with the terms of, Section 2(b) of
the Share Exchange Agreement.

2.5      EFFECT OF ESCROW RELEASE NOTICE

         Upon Campney sending the Escrow Release Notice as specified in Section
2.3, the Share Exchange Agreement will be deemed to have been completed
effective such date, the Conditions Precedent will be deemed to be satisfied or
waived on such date and, upon Campney making the deliveries described in
Sections 2.3(c), Campney shall have fulfilled its obligations as escrow agent
and this Agreement shall terminate.

                                      -3-
<PAGE>

2.6      RELEASE FROM ESCROW IF NO CLOSING

         If Campney does not receive the IPO Notice by the Notice Deadline or if
Campney receives a Conditions Notice before sending the Escrow Release Notice,
then, unless the Corporation, Michels and Mi-Tech otherwise agree in writing:

         (a)      the Escrow Documents shall be released from escrow and, at the
                  election of Campney, destroyed (except that the share
                  certificates listed as item - on the Closing Agenda shall not
                  be destroyed and shall be returned to Mi-Tech or its legal
                  counsel) or returned unused to the parties who delivered them
                  into escrow, on the basis that the Escrow Documents are not
                  delivered and have no effect;

         (b)      the parties to the Share Exchange Agreement shall have no
                  further obligations to each other under this Agreement,

and upon Campney returning or destroying the Escrow Documents in accordance with
the foregoing, Campney shall have fulfilled its obligations as escrow agent and
this Agreement shall terminate.

                                   ARTICLE 3
                               ESCROW AGENT TERMS

3.1      IRREVOCABLE AUTHORIZATION TO CAMPNEY

         The Transaction  Parties hereby  irrevocably  authorize and direct
Campney to hold the Escrow Documents in escrow and to carry out the terms of the
escrow, in accordance with the terms of this Agreement.

3.2      CAMPNEY LEGAL COUNSEL TO THE CORPORATION

         Mi-Tech and Michels  acknowledge  that Campney is legal  counsel to the
Corporation, and each of Mi-Tech and Michels expressly consents to Campney also
acting as escrow agent pursuant to this Agreement, notwithstanding its
representation of the Corporation.

3.3      DUTIES LIMITED

         Campney shall act at all times and for all purposes under this
Agreement as an escrow agent. However, the duties and powers of Campney shall
only be as expressly stated in this Agreement and no further duties shall be
implied.

3.4      INDEMNITY AND LIMITATION OF LIABILITIES

         The Transaction Parties agree that:

         (a)      The Transaction Parties shall jointly and severally indemnify
                  and save Campney harmless from and against any losses, claims
                  and damages arising out of this Agreement or Campney's
                  possession or disposition of the Escrow Documents,

                                      -4-
<PAGE>

                  except where the losses, claims or damages are caused by
                  Campney's deliberate and wilful breach of this Agreement.

         (b)      Campney shall not incur any liability for anything done by
                  Campney in pursuance of the duties of Campney hereunder,
                  unless caused by Campney's deliberate and wilful breach of
                  this Agreement, and the Transaction Parties each release
                  Campney of and from any and all liability from any and all
                  claims and demands both at law and in equity that the
                  Transaction Parties, or any of them, may now or hereafter have
                  against Campney relating to anything done by Campney in
                  pursuance of its duties hereunder, unless arising out of or
                  from Campney's deliberate and wilful breach of this Agreement.

         (c)      Campney shall not be responsible or liable in any manner
                  whatsoever for the sufficiency, correctness, genuineness or
                  validity of any of the Escrow Documents deposited with
                  Campney.

         (d)      Campney shall be protected in acting upon any written notice,
                  request, waiver, consent, receipt, statutory declaration or
                  other paper or document furnished to Campney, and signed by or
                  purporting to be signed by any of the Transaction Parties, or
                  any of the directors and officers thereof, not only as to its
                  due execution and the validity and effectiveness of its
                  provisions, but also as to the truth and acceptability of any
                  information contained therein, which Campney in good faith
                  believes to be genuine.

         (e)      If Campney considers such action necessary or desirable,
                  Campney may at any time apply to any court of competent
                  jurisdiction to interplead the Escrow Documents or any of
                  them.

         (f)      Campney shall have no liability for lost, misplaced or
                  destroyed documents, unless such documents are lost, misplaced
                  or destroyed by Campney's deliberate and wilful breach of this
                  Agreement.

3.5      COURT ORDERS

         Any and all  requirements  of Campney to do any acts pursuant to the
terms of this Agreement will always be subject to an order of a court of
competent jurisdiction.

3.6      FEES

         The fees and expenses of Campney for acting hereunder shall be paid by
the Corporation.

                                   ARTICLE 4
                                     GENERAL

4.1      GOVERNING LAW AND ATTORNMENT

         This Agreement will be governed by and construed in accordance with the
substantive laws of British Columbia and the federal laws of Canada applicable
in British Columbia, without

                                      -5-
<PAGE>

regard to the conflict of law rules of British Columbia. The parties irrevocably
submit to and accept generally and unconditionally the exclusive jurisdiction of
the courts and appellate courts of British Columbia with respect to any legal
action or proceeding which may be brought at any time relating in any way to
this Agreement. Each of the parties irrevocably waives any objection it may now
or in the future have to the venue of any such action or proceeding, and any
claim it may now or in the future have that any such action or proceeding has
been brought in an inconvenient forum.

4.2      TIME OF THE ESSENCE OF THE AGREEMENT

         Unless otherwise  specifically  provided in this Agreement,  time will
be of the essence of this Agreement and of the transactions contemplated by this
Agreement.

4.3      NOTICES

         Any notice, direction, request or other communication required or
contemplated by any provision of this Agreement will be given in writing and
will be given by delivering or faxing the same to the parties as follows:

         (a)      To the Corporation at:

                  c/o 360networks inc.
                  #1510-1066 West Hastings Street
                  Vancouver, British Columbia  V6E 3X1
                  Fax:  (604) 681-6822

                  Attention:   General Counsel
                  Fax No.:     (604) 648-7747

         (b)      To Mi-Tech or Michels at:

                  Mi-Tech Communications, LLC
                  P.O. Box 128
                  Brownsville, WI 53006-0128
                  Fax:  (920) 583-3429

                  Attention:   Brian Johnson, Manager
                  Fax No.:     (920) 583-3429

                  with a copy to:

                  Foley & Lardner
                  Firstar Center
                  777 East Wisconsin Avenue
                  Milwaukee, WI  53202-5367

                  Attention:   Mr. Marc Marotta
                  Fax No.:     (414) 297-4900

                                      -6-
<PAGE>

         (c)      To Campney at:

                  Campney & Murphy
                  P.O. Box 48800
                  2100 - 1111 West Georgia Street
                  Vancouver, B.C.
                  V7X 1K9

                  Attention:   Bruce Tattrie
                  Fax No.:     (604) 688-0829

         Any such notice, direction, request or other communication will be
deemed to have been given or made on the date on which it was delivered or, in
the case of fax, on the next business day after receipt of transmission. Any
party may change its fax number or address for service or email address from
time to time by written notice in accordance with this section.

4.4      ASSIGNMENT

         This  Agreement is not assignable by any party in whole or in part,
without the prior written  consent of the other parties.

4.5      COUNTERPARTS

         This Agreement may be executed in any number of counterparts with the
same effect as if all parties had signed the same document. All of these
counterparts will for all purposes constitute one agreement, binding on the
parties, notwithstanding that all parties are not signatories to the same
counterpart. A fax transcribed copy or photocopy of this Agreement executed by a
party in counterpart or otherwise will constitute a properly executed, delivered
and binding agreement or counterpart of the executing party.

4.6      WAIVER

         No failure or delay on the part of any party in exercising any power or
right under this Agreement will operate as a waiver of such power or right. No
single or partial exercise of any right or power under this Agreement will
preclude any further or other exercise of such right or power. No modification
or waiver of any provision of this Agreement and no consent to any departure by
any party from any provision of this Agreement will be effective until the same
is in writing. Any such waiver or consent will be effective only in the specific
instance and for the specific purpose for which it was given. No notice to or
demand on any party in any circumstances will entitle such party to any other or
further notice or demand in similar or other circumstances.

4.7      FURTHER ASSURANCES

         Each of the parties  will  promptly  execute and deliver to the other
party such further documents and assurances and take such further actions as any
of the others may from time to time request in order to more effectively carry
out the intent and purpose of this Agreement and

                                      -7-
<PAGE>

to establish and protect the rights, interests and remedies intended to be
created in favour of the others.

4.8      ENTIRE AGREEMENT

         This Agreement, the Share Exchange Agreement and any documents and
agreements to be delivered pursuant to this Agreement or the Share Exchange
Agreement supersede all previous invitations, proposals, letters,
correspondence, negotiations, promises, agreements, covenants, conditions,
representations and warranties with respect to the subject matter of this
Agreement. There is no representation, warranty, collateral term or condition or
collateral agreement affecting this Agreement, other than as expressed in
writing in this Agreement.

4.9      AMENDMENTS

         No change or  modification  of this  Agreement  will be valid  unless
it is in writing and signed by each party to this Agreement.

4.10     HEADINGS AND CAPTIONS

         The  headings and captions of sections and  paragraphs  contained in
this Agreement are all inserted for convenience of reference only and are not to
be considered when interpreting this Agreement.

4.11     ENUREMENT

         Subject to the restrictions on transfer contained in this Agreement,
this Agreement will enure to the benefit of and be binding on the parties and
their respective successors and assigns.

           [THE REST OF THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY.]

                                      -8-
<PAGE>

IN WITNESS WHEREOF the parties have executed this Agreement on the dates stated
below.

360NETWORKS INC.

Per:
___________________________________
Authorized Signatory

MI-TECH COMMUNICATIONS, LLC

Per:
___________________________________
Authorized Signatory

MICHELS PIPELINE CONSTRUCTION, INC.

Per:
___________________________________
Authorized Signatory

CAMPNEY & MURPHY

Per:
___________________________________
Partner

                                      -9-
<PAGE>

                                   SCHEDULE A

                                 CLOSING AGENDA

<PAGE>

                                    EXHIBIT C

                          REGISTRATION RIGHTS AGREEMENT

                  REGISTRATION RIGHTS AGREEMENT, dated as of ____________, 2000,
by and among MI-TECH COMMUNICATIONS, LLC, a Wisconsin limited liability company
("Mi-Tech") and 360NETWORKS INC., a Canadian company incorporated in the
Province of Alberta (formerly called Worldwide Fiber Inc.) (the "Company").

                              W I T N E S S E T H :

                  WHEREAS, pursuant to an agreement by and among Mi-Tech, the
Company, Worldwide Fiber Networks, Ltd., Ledcor Communications Ltd., Ledcor
Industries, Inc., Worldwide Fiber (USA), Inc. (formerly known as Pacific Fiber
Link, Inc.) ("Worldwide (USA)"), Ledcor, Inc. and Michels Pipeline Construction,
Inc., dated March 20, 2000, Mi-Tech is, as of the date hereof, exchanging its
shares of Class A Voting Preferred Stock and Non-Voting Common Stock of
Worldwide (USA) for Class A Subordinate Voting Shares of the Company
(hereinafter the "Exchange"); and

                  WHEREAS, the Company desires to allow Mi-Tech and its
Affiliates, as well as William Blair & Company ("Blair") to publicly sell such
Class A Subordinate Voting Shares of the Company pursuant to certain
registration statements which may be filed by the Company under the Securities
Act of 1933, as amended (the "Act") pursuant to the terms and conditions
hereinafter set forth.

                  NOW, THEREFORE, in consideration of the mutual covenants and
promises herein made and mutual benefits to be derived from this Agreement, it
is hereby agreed as follows:

                  1. DEFINITIONS. All capitalized terms used in this Agreement
shall have, unless otherwise defined below in this Section 1 or otherwise in
this Agreement, the meaning ascribed such terms in that certain Shareholders
Agreement dated December 31, 1998, among the Company, Worldwide Fiber Networks
Ltd., Ledcor Industries Inc., Mi-Tech, Ledcor, Inc., Ledcor Communications Ltd.,
Worldwide (USA) and Michels Pipeline Construction, Inc. (the "Shareholders
Agreement").

                  "AFFILIATE" means any Person which directly or indirectly
controls, or is under common control with, or is controlled by another Person,
where "control" means the possession, directly or indirectly, of more than fifty
percent (50%) of the combined voting power of all outstanding securities, or the
direction of management or policies (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise) and shall be
deemed to include senior employees of Mi-Tech or Michels designated by Mi-Tech
or Michels by notice to the Company from time to time.

                  "COMMISSION" means the Securities and Exchange Commission.

<PAGE>

                  "COMMON STOCK" means the Class A Subordinate Voting Shares of
the Company.

                  "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

                  "HOLDER" means Mi-Tech and any of its Affiliates and Blair
holding Registrable Stock

                  "OTHER REGISTRATION RIGHTS AGREEMENTS" means the Private
Equity Registration Rights Agreement, the Registration Rights Agreement between
the Company and Canadian National Railway, and the agreements to provide
registration rights to Gregory B. Maffei, Ramsey Beirne Investment Partners LLC,
Madison Square Inc. and Larry R. Olsen.

                  "PERSON" means any natural person, partnership, corporation or
other legal entity.

                  "PRIVATE EQUITY REGISTRATION RIGHTS AGREEMENT" means the
Registration Rights Agreement dated as of September 9, 1999 between the Company,
DWF SRL, GSCP3 WWF (Barbados) SRL, Providence Equity Fiber, L.P. and Tyco Group
S.a.r.l.

                  "REGISTRABLE STOCK" means the Common Stock issued or issuable
to Mi-Tech and its Affiliates and Blair upon conversion of the Worldwide (USA)
Stock and any other shares of Common Stock issued in respect of such shares by
way of a stock dividend, or stock split or in connection with a combination of
shares, recapitalization, merger, consolidation, share exchange or
reorganization; PROVIDED, HOWEVER, that Registrable Stock shall not include
shares of Common Stock which the holder thereof is entitled to sell into the
public market, together with all other Registrable Stock of the Company
beneficially owned by such holder (and all Registrable Stock as to which such
holder shares beneficial ownership) that is at the time of registration,
transferable by the holder thereof in a single brokerage transaction under the
provisions and within the volume limitations or Rule 144(e)(1) promulgated under
the Securities Act or any successor to such Rule.

                  "REGISTRATION STATEMENT" means a registration statement filed
by the Company with the Commission for a public offering and sale of securities
of the Company (other than a registration statement on Form S-8, Form S-4, or
successor form).

                  "SECURITIES ACT" means the Securities Act of 1933, as amended.

                  "WORLDWIDE (USA) STOCK" means all shares of stock of Worldwide
(USA) owned by Mi-Tech or its Affiliates.

                  2. REQUIRED REGISTRATION.

                  (a) [Deleted]

                  (b) At any time following one (1) year after the effective
date of the first registration statement filed by the Company under the
Securities Act covering an underwritten offering of its securities to the
general public, the Holder or Holders holding, in the aggregate, at

                                      -2-
<PAGE>

least fifty percent (50%) of the then outstanding Registrable Stock, may by
notice in writing to the Company request that the Company file a Registration
Statement with respect to all or any portion of shares of Registrable Stock the
aggregate proceeds of which (after deduction for underwriter's discounts and
expenses related to the issuance) are reasonably expected to exceed $5,000,000.
Notwithstanding anything to the contrary contained herein, if the Company shall
furnish to Holder a certificate signed by the President of the Company stating
that in good faith judgment of the Board it would be seriously detrimental to
the Company or its shareholders for a registration statement to be filed in the
near future due to pending Company events, or that it would require disclosure
of material non-public information relating to the Company which, in the
reasonable opinion of the Board, should not be disclosed, then the Company's
obligation to use all reasonable efforts to register, qualify or comply under
this Section 2 shall be deferred for a period not to exceed one hundred eighty
(180) days from the date of receipt of written request from such Holders;
PROVIDED, HOWEVER, that the Company may not utilize this right more than once in
any twelve (12) month period.

                  (c) Following receipt of any notice given under this Section 2
by Holders of Registrable Stock, the Company shall immediately notify all
Holders from whom notice has not been received that such registration is to be
effected and shall use its best efforts to register under the Securities Act the
number of shares of Registrable Stock specified in such notice (and in all
notices received by the Company from other holders within twenty (20) days after
the giving of such notice by the Company to such other Holders). The Holders of
a majority of the shares of Registrable Stock to be sold in such offering may
designate the managing underwriter of such offering (subject to the consent of
the Company, which consent will not be unreasonably withheld). The Company shall
be obligated to register Registrable Stock pursuant to Section 2(b) on two (2)
occasions only, PROVIDED, HOWEVER, that such obligation shall be deemed
satisfied only when a Registration Statement covering all shares of Registrable
Stock specified in notices received as aforesaid and which have not been
withdrawn by the Holders thereof shall have become effective. A registration
which does not become effective after the Company has filed a Registration
Statement with respect thereto solely by reason of the refusal of the requesting
Holders to proceed shall be deemed to have been effected by the Company at the
request of such requesting Holders unless such requesting Holders shall have
elected to pay all the Company's reasonable expenses in connection with such
registration.

                  (d) The Holders requesting registration under this Section 2
must distribute the Registrable Stock covered by their request by means of a
public offering underwritten by a reputable national or regional underwriter.
The rights of any Holder to include its Registrable Stock in such registration
under this Section 2 shall be conditioned upon such Holder's participation in
such underwriting and the inclusion of such Holder's Registrable Stock in the
underwriting to the extent provided herein. All Holders proposing to distribute
their Registrable Stock through such underwriting shall (together with the
Company as provided in Section 4(b)) enter into an underwriting agreement in
customary form with the managing underwriter designated for such underwriting.

                  (e) If in the good faith judgment of the managing underwriter
of such public offering the inclusion of all of the Registrable Stock requested
for inclusion pursuant to this Section 2 would interfere with the successful
marketing of a smaller number of shares to be

                                      -3-
<PAGE>

offered, then the number of shares of Registrable Stock to be included in the
offering shall be reduced to the required level. The Company shall be entitled
to include in any Registration Statement referred to in this Section 2 shares of
Common Stock to be sold by the Company for its own account, and pursuant to the
exercise of piggyback registration rights granted by the Company pursuant to the
Other Registration Rights Agreements, except as and to the extent that, in the
opinion of the managing underwriter, such inclusion would adversely affect the
marketing of the Registrable Stock of the Holders to be sold.

                  (f) Notwithstanding anything to the contrary contained herein,
the Company shall not be obligated to effect, or to take any action to effect,
any registration pursuant to Section 2(b) during the period starting with the
date sixty (60) days prior to the Company's good faith estimate of the date of
filing of, and ending on a date one hundred eighty (180) days after the
effective date of, a Company-initiated registration; PROVIDED, that the Company
is actively employing in good faith all reasonable efforts to cause such
registration statement to become effective.

                  3. INCIDENTAL REGISTRATION. Each time the Company shall
determine to file a Registration Statement (other than in connection with the
initial public offering of the Company) in connection with the proposed offer
and sale for money of any of its securities by it or any of its security
holders, the Company will give written notice of its determination to all
Holders. Upon the written request of a Holder given within ten (10) days after
the giving of any such notice by the Company, the Company will use its best
efforts to cause all such shares of Registrable Stock, the Holders of which have
so requested registration thereof, to be included in such Registration
Statement, all to the extent requisite to permit the sale or other disposition
by the prospective seller or sellers of the Registrable Stock to be so
registered. If the Registration Statement is to cover an underwritten
distribution, the Company shall use its best efforts to cause the Registrable
Stock requested for inclusion pursuant to this Section 3 to be included in the
underwriting on the same terms and conditions as the securities otherwise being
sold through the underwriters. If, in the good faith judgment of the managing
underwriter of such public offering, the inclusion of all of the Registrable
Stock requested for inclusion pursuant to this Section 3 and other securities
would interfere with the successful marketing of a smaller number of shares to
be offered, then the number of shares of Registrable Stock and other securities
to be included in the offering (except for shares: (a) to be issued by the
Company in an offering initiated by the Company; (b) shares to be registered
pursuant to the Private Equity Registration Rights Agreement; or (c) shares to
be registered pursuant to the exercise of a demand registration right held by
one of the Company's security holders) shall be reduced to the required level
with the participation in such offering to be PRO RATA among the holders thereof
requesting such registration, based upon the number of shares of Registrable
Stock and other securities owned by such holders.

                  4. REGISTRATION PROCEDURES. If and whenever the Company is
required by the provisions of Section 2 or 3 hereof to effect the registration
of shares of Registrable Stock under the Securities Act, the Company will, at
its expense, as expeditiously as possible:

                  (a) In accordance with the Securities Act and the rules and
         regulations of the Commission, prepare and file with the Commission a
         Registration Statement with respect to such securities and use its best
         efforts to cause such Registration Statement to become

                                      -4-
<PAGE>

         and remain effective for a period of one hundred twenty (120) days or
         until the securities covered by such Registration Statement have been
         sold, whichever first occurs, and prepare and file with the Commission
         such amendments to such Registration Statement (and use its best
         efforts to cause post-effective amendments to become and remain
         effective) and supplements to the prospectus contained therein as may
         be necessary to comply with the provisions of the Securities Act with
         respect to the disposition of all securities covered by such
         Registration Statement;

                  (b) If the offering is to be underwritten in whole or in part,
         enter into a written underwriting agreement in customary form with the
         managing underwriter of the public offering;

                  (c) Furnish to the participating Holders and to the
         underwriters such reasonable number of copies of the Registration
         Statement (including all exhibits thereto), preliminary prospectus,
         final prospectus and such other documents as such underwriters and
         participating Holders may reasonably request in order to facilitate the
         public offering of such securities;

                  (d) Use its best efforts to register or qualify the securities
         covered by such Registration Statement under such state securities or
         blue sky laws of such jurisdictions (i) as shall be reasonably
         appropriate for the distribution of the securities covered by such
         Registration Statement or (ii) as such participating Holders and
         underwriters may reasonably request within twenty (20) days following
         the original filing of such Registration Statement, except that the
         Company shall not for any purpose be required to execute a general
         consent to service of process, to subject itself to taxation, or to
         qualify to do business as a foreign corporation in any jurisdiction
         where it is not so qualified;

                  (e) Notify the Holders participating in such registration,
         promptly after it shall receive notice thereof, of the date and time
         when such Registration Statement and each post-effective amendment
         thereto has become effective or a supplement to any prospectus forming
         a part of such Registration Statement has been filed;

                  (f) Notify the Holders participating in such registration
         promptly of any request by the Commission or any state securities
         commission or agency for the amending or supplementing of such
         Registration Statement or prospectus or for additional information;

                  (g) Prepare and file with the Commission, promptly upon the
         request of any such participating Holders, any amendments or
         supplements to such Registration Statement or prospectus which is
         required under the Securities Act or the rules and regulations
         thereunder in connection with the distribution of the Registrable Stock
         by such participating Holders;

                  (h) Prepare and promptly file (in any event within twenty (20)
         days) with the Commission, and immediately notify such participating
         Holders of the need to file and of the filing of, such amendments or
         supplements to such Registration Statement or

                                      -5-
<PAGE>

         prospectus as may be necessary to correct any statements or omissions
         if, at the time when a prospectus relating to such securities is
         required to be delivered under the Securities Act, any event has
         occurred as the result of which any such prospectus or any other
         prospectus as then in effect would include an untrue statement of a
         material fact or omit to state any material fact required to be stated
         therein or necessary to make the statements therein not misleading;

                  (i) In case any of such participating Holders or any
         underwriter for any such Holders is required to deliver a prospectus at
         a time when the prospectus then in circulation is not in compliance
         with the Securities Act or the rules and regulations of the Commission,
         prepare promptly upon request such amendments or supplement to such
         Registration Statement and such prospectus as may be necessary in order
         for such prospectus to comply with the requirements of the Securities
         Act and such rules and regulations;

                  (j) Advise such participating Holders, promptly after it shall
         receive notice or obtain knowledge thereof, of the issuance of any stop
         order by the Commission or any state securities commission or agency
         suspending the effectiveness of such Registration Statement or the
         initiation or threatening of any proceeding for that purpose and
         promptly use its best efforts to prevent the issuance of any stop order
         or to obtain its withdrawal if such stop order should be issued;

                  (k) At the request of any participating Holder (i) furnish on
         the date that such Registrable Stock is delivered to the underwriters
         for sale in connection with such registration, an opinion, dated such
         date, of the counsel representing the Company for the purposes of such
         registration, addressed to the underwriters, in form and substance as
         it customarily provided by issuer's counsel to underwriters in an
         underwritten public offering and (ii) use its best efforts to furnish
         letters dated each such effective date and such closing date, from the
         independent certified public accountants of the Company, addressed to
         the underwriters, in form and substance as is customarily provided by
         independent certified public accountants to underwriters in an
         underwritten public offering; and

                  (l) Cooperate with the Holders to facilitate the timely
         preparation and delivery (under normal way settlement procedures) of
         certificates representing securities to be sold pursuant to any
         Registration Statement free of any restrictive legends and in such
         denominations and registered in such names as Holders may request prior
         to sales of securities pursuant to such Registration Statement.

                  5. EXPENSES. With respect to each registration effected
pursuant to Section 2 and 3 hereof, all fees, costs and expenses of and
incidental to such registration and the public offering in connection therewith
shall be borne by the Company; PROVIDED, HOWEVER, that security Holders
participating in any such registration shall bear (a) their PRO RATA share of
the underwriting discounts and selling commissions; (b) the fees and expenses of
more than one counsel for the selling Holders selected by Holders of a majority
of the Registrable Stock to be registered, which additional counsel, if any,
shall be paid by the Holder or Holders that engaged

                                      -6-
<PAGE>

such counsel; and (c) expenses in excess of $15,000 of any special audit
required in connection with a demand registration, which shall be paid by the
selling Holders in proportion to the aggregate value of the securities offered
for sale by each of them. The fees, costs and expenses of registration to be
borne by the Company as provided in this Section 5 above, shall include, without
limitation, all registration, filing fees, printing expenses, fees and
disbursements of counsel and accountants for the Company, fees and disbursements
of counsel for the underwriter or underwriters of such securities (if the
Company and/or selling security holders are otherwise required to bear such fees
and disbursements), all legal fees and disbursements and other expenses of
complying with state securities or blue sky laws of any jurisdictions in which
the securities to be offered are to be registered or qualified, reasonable fees
and disbursement of one counsel for the Holders and the premiums and other costs
of policies of insurance insuring the Company against liability arising out of
such public offering. Notwithstanding the foregoing, the Company shall not be
required to pay for any expenses of any registration proceeding begun pursuant
to Section 2 above if the registration request is subsequently withdrawn (other
than a withdrawal due to (i) a material adverse change in the Company's business
or financial condition or (ii) a reduction in the closing sale price of the
Company's Common Stock (as reported in THE WALL STREET JOURNAL) since the
registration was initiated by the Holders) at the request of the Holders of a
majority of the Registrable Stock to be registered (which Holders shall bear
such expenses), unless the Holders of a majority of the Registrable Stock agree
to forfeit the right to one demand registration pursuant to Section 2.

                  6. INDEMNIFICATION AND CONTRIBUTION.

                  (a) The Company will indemnify and hold harmless each Holder
of shares of Registrable Stock which are included in a Registration Statement
pursuant to the provisions of this Agreement, the directors, officers, employees
and agents of such Holder, any underwriter (as defined in the Securities Act) of
the securities covered by the Registration Statement, the directors, officers,
employees and agents of such underwriter, and any Person who controls such
Holder or such underwriter within the meaning of the Securities Act or the
Exchange Act, and each of their successors, from and against any and all claims,
actions, demands, losses, damages or liabilities (including legal and other
expenses reasonably incurred in connection with defending same), joint or
several (collectively, "Damages"), to which they or any of them may become
subject under the Securities Act, the Exchange Act or other federal or state
statutory law or regulation, at common law or otherwise, insofar as such Damages
arise out of or are based upon any untrue statement or alleged untrue statement
of any material fact contained in such Registration Statement (including all
documents incorporated therein by reference) as originally filed or in any
amendment thereto, any preliminary or final prospectus contained therein or any
amendment or supplement thereto, or arise out of or are based upon the ommission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading or arise out
of or are based on any violation or alleged violation of any federal, state or
common law rule or regulation applicable to the Company and relating to action
required of or inaction by the Company in connection with any such registration
and agrees to reimburse each such Holder, as incurred, for any legal or other
expenses reasonably incurred by it in connection with the investigation or
defending any such Damages; PROVIDED, HOWEVER, that the Company will not be
liable in any such case to the extent that any such Damages arise out of or are
based upon an untrue statement or alleged untrue statement or

                                      -7-
<PAGE>

omission or alleged omission so made in reliance upon and in strict conformity
with information furnished by such Holder, such underwriter or such controlling
Person in writing specifically for use in the preparation thereof. This
indemnity shall be in addition to any liability which the Company may otherwise
have and shall be in addition to any subsequently executed indemnity agreements.

                  (b) Each Holder of shares of the Registrable Stock which are
included in a registration pursuant to the provisions of this Agreement will,
severally, indemnify and hold harmless the Company, the directors, officers,
employees and agents of the Company, any underwriter (as defined in the
Securities Act) of the securities covered by the Registration Statement, the
directors, officers, employees and agents of such underwriter, and any Person
who controls the Company or such underwriter within the meaning of the
Securities Act or the Exchange Act, and each of their successors, from and
against any and all Damages, joint or several, to which they or any of them may
become subject under the Securities Act, the Exchange Act or other federal or
state statutory law or regulation, at common law or otherwise, insofar as such
Damages arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in such Registration Statement
(including all documents incorporated therein by reference) as originally filed
or in any amendment thereto, any preliminary or final prospectus contained
therein or any amendment or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
in each case to the extent, but only to the extent that such untrue statement or
alleged untrue statement or omission or alleged omission was so made in reliance
upon and in strict conformity with written information furnished by such Holder
for use in the preparation thereof. This indemnity shall be in addition to any
liability which such Holder may otherwise have and shall be in addition to any
subsequently executed indemnity agreements.

                  (c) Promptly after receipt by a party to be indemnified
pursuant to the provision of paragraph (a) or (b) of this Section 6 (an
"indemnified party") of notice of the commencement of any action involving the
subject matter of the foregoing indemnity provisions, such indemnified party
will, if a claim thereof is to be made against the indemnifying party pursuant
to the provisions of paragraph (a) or (b), notify the indemnifying party of the
commencement thereof; but the omission so to notify the indemnifying party will
not relieve it from any liability which it may have to an indemnified party
otherwise than under this Section 6 and shall not relieve the indemnifying party
from liability under this Section 6 unless such indemnifying party is prejudice
by such omission. The indemnifying party shall be entitled to appoint counsel of
the indemnifying party's choice at the indemnifying party's expense to represent
the indemnified party in any action for which indemnification is sought (in
which case the indemnifying party shall not thereafter be responsible for the
fees and expenses of any separate counsel retained by the indemnified party or
parties except as set forth below); PROVIDED, HOWEVER, that such counsel shall
be reasonably satisfactory to the indemnified party. Notwithstanding the
indemnifying party's election to appoint counsel to represent the indemnified
party in an action, the indemnified party shall have the right to employ
separate counsel (including local counsel), and the indemnifying party shall
bear the reasonable fees, costs and expenses of such separate counsel (and local
counsel) if (i) the use of counsel chosen by the indemnifying party to represent
the indemnified party would present such counsel with a conflict

                                      -8-
<PAGE>

of interest; (ii) the actual or potential defendants in, or targets of, any such
action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party; (iii) the
indemnifying party shall not have employed counsel satisfactory to the
indemnified party to represent the indemnified party within a reasonable time
after notice of the institution of such action; or (iv) the indemnifying party
shall authorize the indemnified party to employ separate counsel at the expense
of the indemnifying party. An indemnifying party will not, without the prior
written consent of the indemnified parties, settle or compromise or consent to
the entry of any judgment with respect to any pending or threatened claim,
action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or
consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding.

                  (d) In order to provide for just and equitable contribution to
joint liability under the Securities Act in any case in which either (i) any
Holder exercising rights under this Agreement, or any controlling Person of any
such Holder, makes a claim for indemnification pursuant to this Section 6 but it
is judicially determined (by the entry of a final judgment or decree by a court
of competent jurisdiction and the expiration of time to appeal or the denial of
the last right of appeal) that such indemnification may not be enforced in such
case notwithstanding the fact that this Section 6 provides for indemnification
is such case, or (ii) contribution under the Securities Act may be required on
the part of any such selling Holder or any such controlling Person in
circumstances for which indemnification is provided under this Section 6; then,
and in each such case, the Company and such Holder will contribute to the
aggregate Damages in such proportion as is appropriate to reflect the relative
fault of the indemnifying party, on the one hand, and the indemnified party, on
the other. Relative fault shall be determined by reference to whether any
alleged untrue statement or omission relates to information provided by the
indemnifying party, on the one hand, or by the indemnified party, on the other
hand. The parties agree that it would not be just and equitable if contribution
were determined by pro rata allocation or any other method of allocation which
does not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this paragraph (d), no person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. For purposes of this Section 6,
each Person who controls a Holder within the meaning of either the Securities
Act or the Exchange Act and each director, officer, employee and agent of such
Holder shall have the same rights to contribution as such Holder, and each
Person who controls the Company within the meaning of either the Securities Act
or the Exchange Act, each officer of the Company who shall have signed the
Registration Statement and each director of the Company shall have the same
rights to contribution as the Company, subject in each case to the applicable
terms and conditions of this paragraph (d); PROVIDED, HOWEVER, that, in any such
case, no Person or entity guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) will be entitled to contribution
from any Person or entity who was not guilty of such fraudulent
misrepresentation.

                                      -9-
<PAGE>

                  (e) Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the underwriting
agreement entered into in connection with the underwritten public offering are
in conflict with the foregoing provisions, the provisions in the underwriting
agreement shall control.

                  (f) The provisions of this Section 6 will remain in full force
and effect, regardless of any investigation made by or on behalf of any Holder
or the Company or any of the officers, directors, employees or agents or
controlling Persons referred to in Section 6 hereof, and will survive the sale
by a Holder of securities covered by a Registration Statement.

                  7. REPORTING REQUIREMENTS UNDER EXCHANGE ACT. When it is first
legally required to do so, the Company shall register its Common Stock under
Section 12 of the Exchange Act and shall keep effective such registration and
shall timely file such information, documents and reports as the Commission may
require or prescribe under Section 13 of the Exchange Act. From and after the
effective date of the first Registration Statement filed by the Company, the
Company shall (whether or not it shall then be required to do so) timely file
such information, documents and reports as the Commission may require or
prescribe under Section 13 or 15(d) (whichever is applicable) of the Exchange
Act. The Company acknowledges and agrees that the purposes of the requirements
contained in this Section 7 are (a) to enable any such Holder to comply with the
current public information requirement contained in Paragraph (c) of Rule 144
under the Securities Act should such Holder ever wish to dispose of any of the
securities of the Company acquired by it without registration under the
Securities Act in reliance upon Rule 144 (or any other similar or successor
exemptive provision), and (b) to qualify the Company for the use of Registration
Statements on Form S-3 or Form F-3 (or any successor form or forms). In
addition, the Company shall take such other measures and file such other
information, documents and reports, as shall hereafter be required by the
Commission as a condition to the availability of Rule 144 under the Securities
Act (or any similar or successor exemptive provision hereafter in effect) and
the use of Form S-3 or Form F-3 (or any successor form or forms). From and after
the effective date of the first Registration Statement filed by the Company, the
Company agrees to use its best efforts to facilitate and expedite transfers of
Registrable Stock pursuant to Rule 144 under the Securities Act (or any similar
or successor exemptive provision hereafter in effect), which efforts shall
include timely notice to its transfer agent to expedite such transfers of
Registrable Stock.

                  8. DELAY OF REGISTRATION. No Holder shall have any right to
obtain or seek an injunction restraining or otherwise delaying any such
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Agreement.

                  9. WAIVERS. The terms provided for in this Agreement may be
amended, waived, discharged or terminated (either generally or in a particular
instance and either retroactively or prospectively) only by a writing executed
by the Company and the Holders of a majority of the Registrable Stock, and any
such amendment, waiver, discharge or termination shall be binding on all the
Holders, but in no event shall the obligation of any Holder be materially
increased, except upon the written consent of such Holder.

                                      -10-
<PAGE>

                  10. ASSIGNMENT. The rights to cause the Company to register
securities granted to Holders by the Company pursuant hereto may not be
transferred or assigned for 180 days after the date of grant except to any
Affiliate of a Holder; PROVIDED that the Company is, within a reasonable period
of time after such transfer, furnished with written notice of the name and
address of such transferee or assignee and the securities with respect to which
such registration rights are being assigned; and PROVIDED, FURTHER, that such
assignment shall be effective only if immediately following such transfer the
further disposition of such securities by the transferee or assignee is
restricted under the Securities Act.

                  11. TERMINATION. The registration rights provided for in this
Agreement shall terminate as to all Holders on the fifth anniversary of the
closing of the Company's first public offering (the "Fifth Anniversary")
PROVIDED, HOWEVER, such termination shall be postponed until the later of (i)
that number of days following such Fifth Anniversary equal to the number of
days, if any, between the date of such first public offering and the Fifth
Anniversary that the Common Stock of the Company is not traded on a national
stock exchange or the Nasdaq National Market System (or any successor
organization) and (ii) if as of the Fifth Anniversary, the Company is not so
traded, then, one year following such date as the Company first resumes trading
on a national stock exchange or the Nasdaq National Market System (or any
successor organization).

                  12. THIRD PARTY BENEFICIARIES. Blair and any Affiliate of
Mi-Tech who is a Holder shall be express third party beneficiaries of this
Agreement.

                                      -11-
<PAGE>

                  IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of the date set forth above.

                                            MI-TECH COMMUNICATIONS LLC

                                            By: ______________________________
                                                Brian P. Johnson, Manager

                                            360NETWORKS INC.

                                            By: ______________________________
                                                ______________________________

                                      -12-
<PAGE>

                                    EXHIBIT D

                          ARTICLES OF AMENDMENT OF 360

                   To be provided by 360 to Mi-Tech as soon as
                 possible after the execution of this Agreement.

<PAGE>

                                    EXHIBIT E

                    BLAIR REPRESENTATION AND ACKNOWLEDGEMENT

TO:               360networks inc.

WHEREAS:

A.                By an Agreement made as of the 20th day of March 2000 (the
"Share Exchange Agreement") by and among 360networks inc. ("360"), Worldwide
Fiber (USA), Inc. (the "Company"), Mi-Tech Communications, LLC ("Mi-Tech"),
Michels Pipeline Construction, Inc. and the other parties named therein, Mi-Tech
agreed to exchange its shares of the Company for Class A Subordinate Voting
Shares of 360, and assigned 2% of its subscription rights in respect thereof to
William Blair & Company ("Blair").

B.                Under the Share Exchange Agreement Mi-Tech has agreed that,
prior to the issuance of shares (the "Blair Shares") by 360 to Blair, it shall
cause Blair to execute and deliver this instrument to 360.

THEREFORE, in consideration of the issuance of the Blair Shares to Blair, and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, Blair covenants to and for the benefit of 360 as
follows:

                  Section 1. DEFINED TERMS. Terms having a meaning defined in
the Share Exchange Agreement shall have the same meaning when used in this
instrument, unless the context otherwise requires.

                  Section 2. REPRESENTATIONS AND WARRANTIES OF BLAIR. Blair
represents, warrants and acknowledges to 360 as of the date hereof and, unless
otherwise provided, as of the Closing Date, as follows:

                  (a) Blair is acquiring Class A Subordinate Voting Shares as
         principal with an aggregate acquisition cost to Blair of not less than
         C$150,000 and is purchasing the Class A Subordinate Voting Shares for
         investment only and not with a view to resale or distribution in
         violation of applicable securities laws.

                  (b) Blair, if a "U.S. Person" (as defined in Regulation S
         under the United States Securities Act of 1993, as amended (the "1933
         Act"), is an "Accredited Investor" (as defined in Rule 501 under the
         1933 Act). Blair is acquiring the Class A Subordinate Voting Shares for
         its own account, for investment purposes only and not with a view to
         any resale, distribution or other disposition of the Class A
         Subordinate Voting Shares in violation of the United States securities
         laws. If Blair decides to offer, sell or otherwise transfer any of the
         Class A Subordinate Voting Shares, it will not offer, sell or otherwise
         transfer any of such Class A Subordinate Voting Shares directly or
         indirectly, unless such sale is made in compliance with, or in reliance
         of an exemption from, the 1933 Act and

<PAGE>

         applicable state securities laws. Blair understands and agrees that
         there may be material tax consequences to Blair of an acquisition or
         disposition of the Class A Subordinate Voting Shares and that, except
         as expressly set forth in this Agreement, 360 gives no opinion and
         makes no representation with respect to the tax consequences to Blair
         under United States, state, local or foreign tax law of Blair's
         acquisition or disposition of such securities.

                  (c) Blair acknowledges that no offering memorandum, prospectus
         or registration statement has been prepared or filed by 360 with any
         securities commission or similar authority in any jurisdiction in
         connection with the Exchange and the issue and sale of Class A
         Subordinate Voting Shares to Blair is subject to such sale being exempt
         from the requirements of applicable securities laws as to the filing of
         an offering memorandum, prospectus or registration statement.

                  (d) Blair has received and reviewed 360's Registration
         Statement on Form F-1 as filed with the Securities and Exchange
         Commission of the United States on January 28, 2000 and has had the
         opportunity to discuss the disclosure therein, as well as developments,
         concerning 360 and the industry in which it competes, with
         representatives of 360 and has received complete answers to all of its
         questions. Blair is not relying on any written or oral representations
         made by 360, except to the extent expressly provided in this Agreement.

                  (e) To Blair's knowledge, the Class A Subordinate Voting
         Shares were not advertised in printed media of general and regular paid
         circulation, radio or television and Blair has not purchased the Class
         A Subordinate Voting Shares as a result of any form of general
         solicitation or general advertising, including advertisements,
         articles, notices or other communications published in any newspaper,
         magazine or similar media or broadcast over radio, or television, or
         any seminar or meeting whose attendees have been invited by general
         solicitation or general advertising.

                  (f) Blair has such knowledge and experience in financial and
         business affairs as to be capable of evaluating the merits and risks of
         the investment hereunder and is able to bear the economic risk of loss
         of such investment.

                  (g) Blair understands that the Class A Subordinate Voting
         Shares have not been and will not be registered under the 1933 Act, as
         amended, or the securities laws of any state of the United States and
         that the sale contemplated hereby is being made in reliance on an
         exemption from such registration requirements and Blair understands and
         agrees that the Class A Subordinate Voting Shares may not be traded in
         the United States or by or on behalf of a U.S. Person or a person in
         the United States unless permitted by the terms of the 360 Shareholders
         Agreement and either registered under the 1933 Act and any applicable
         state securities laws or an exemption from such registration
         requirements is available and that certificates representing the Class
         A Subordinate Voting Shares will bear a legend to such effect.

                  (h) Blair understands that no prospectus has been or will be
         filed in accordance with the securities laws, and the regulations
         thereunder, of, and the applicable

                                      -2-
<PAGE>

         published rules, policy statements, blanket orders and notices of the
         securities regulatory authorities in the provinces and territories of
         Canada (the "Canadian Securities Laws") qualifying the distribution of
         the Class A Subordinate Voting Shares in any province or territory of
         Canada and that the Class A Subordinate Voting Shares may not be
         offered or sold by Blair in any province or territory of Canada except
         pursuant to an applicable exemption from the prospectus requirements
         of the applicable Canadian Securities Laws and from a dealer
         appropriately registered under the applicable Canadian Securities Laws
         or, other than in Ontario, in accordance with an exemption from the
         registration requirements of such laws.

                  (i) Blair has not employed any broker or finder in connection
         with the transactions contemplated by the Share Exchange Agreement.

                  (j) Blair acknowledges and agrees that the foregoing
         representations, warranties and covenants set out herein are made by
         Blair and Michels with the intent that they be relied upon in
         determining the suitability of Blair as a purchaser of Class A
         Subordinate Voting Shares. Blair further agrees that by Blair accepting
         the Blair Shares, Blair shall be representing and warranting that the
         foregoing representations and warranties are true as at the Closing
         Date with the same force and effect as if they had been made by Blair
         at the Closing Date and shall continue in full force and effect
         notwithstanding any subsequent disposition by Blair of the Class A
         Subordinate Voting Shares. Blair undertakes to notify 360 in writing of
         any change in any representation, warranty or other information
         relating to Blair set forth herein that takes place prior to the
         Closing Date.

                  Section 3. UNDERWRITTEN OFFERING - LOCK-UP OF SHARES. Blair
agrees, if requested in writing by the managing underwriter(s) of an IPO, not to
effect any sale (or in any other way, directly or indirectly, effect any
transfer, assignment, distribution, pledge, encumbrance or other disposition of,
either voluntarily or involuntarily, including the assignment or transfer of
voting rights, if any) (collectively, with "sale", a "Sale") of any shares or of
any equity securities (or securities convertible into or exchangeable for equity
securities) of 360, including, without limitation, any Sale pursuant to Canadian
Securities Laws or Rule 144 under the U.S. Securities Act, (other than as part
of such underwritten public offering) during the time period requested by the
managing underwriter(s) not to exceed one year.

                  Section 4. GOVERNING LAW. This Agreement shall be deemed to be
made in and in all respects shall be interpreted, construed and governed by and
in accordance with the laws of the State of New York without regard to the
conflict of law principles thereof.

                                      -3-
<PAGE>

                  Section 5. ENUREMENT. This instrument shall be binding upon
Blair and its successors and shall enure to the benefit of 360 and its
successors and assigns.

EXECUTED this ________ day of March, 2000.

                                               WILLIAM BLAIR & COMPANY

                                               Per:

                                               _________________________________
                                               Signature

                                               _________________________________
                                               Name

                                               _________________________________
                                               Title

                                      -4-

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