Document:

Exhibit 4(em)

THIS  WARRANT  HAS NOT BEEN  REGISTERED  UNDER THE  SECURITIES  ACT OF 1933,  AS
AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS, NOR THE SECURITIES LAWS OF ANY
OTHER  JURISDICTION.  THIS WARRANT MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THOSE SECURITIES LAWS OR AN OPINION
OF COUNSEL, IN FORM AND SUBSTANCE  SATISFACTORY TO THE COMPANY, THAT THE SALE OR
TRANSFER IS PURSUANT TO AN EXEMPTION TO THE  REGISTRATION  REQUIREMENTS OF THOSE
SECURITIES LAWS.

                                -----------------

No. CS-95                                         Dated as of September 14, 2004
---------

         Void after 5:00 p.m., New York City time, on September 14, 2009

                                     WARRANT

              for the Purchase of 22,250,000 Shares of Common Stock

     FOR  VALUE  RECEIVED,   NCT  GROUP,   INC.  (the  "Company"),   a  Delaware
corporation,  on this day of September 14, 2004 (the "Grant Date") hereby issues
this warrant (the "Warrant") and certifies that Carole Salkind (the "Holder") is
granted the right,  subject to the  provisions of the Warrant,  to purchase from
the Company,  at any time, or from time to time during the period  commencing at
9:00 a.m. New York City local time on September 14, 2004,  and expiring,  unless
earlier  terminated as  hereinafter  provided,  at 5:00 p.m. New York City local
time on September 14, 2009 up to Twenty-Two  Million Two Hundred Fifty  Thousand
(22,250,000)  fully  paid and  nonassessable  shares of Common  Stock,  $.01 par
value,  of the  Company at a price per share  (the  "Exercise  Price")  equal to
$0.020.

     The term "Common  Stock" means the shares of Common Stock,  $.01 par value,
of the Company constituted on the Grant Date of this Warrant,  together with any
other equity securities that may be issued by the Company in addition thereto or
in  substitution  therefor.  The number of shares of Common Stock to be received
upon  the  exercise  of  this  Warrant  may be  adjusted  from  time  to time as
hereinafter  set  forth.  The  shares  of  Common  Stock  deliverable  upon such
exercise,  and as adjusted from time to time, are hereinafter sometimes referred
to as "Warrant Stock".

     Upon receipt by the Company of evidence  reasonably  satisfactory  to it of
the loss, theft,  destruction or mutilation of this Warrant, and (in the case of
loss, theft or destruction) of reasonably satisfactory indemnification, and upon
surrender  and  cancellation  of this Warrant,  if mutilated,  the Company shall
execute and  deliver a new Warrant of like tenor and date.  Any such new Warrant
executed and delivered shall constitute an additional  contractual obligation on
the part of the Company,  whether or not this Warrant so lost, stolen, destroyed
or mutilated shall be at any time enforceable by anyone.

     The Holder agrees with the Company that this Warrant is issued, and all the
rights  hereunder shall be held,  subject to all of the conditions,  limitations
and provisions set forth herein.

     1.  Exercise of Warrant.  This Warrant may be exercised in whole or in part
at any time,  or from time to time,  during the period  commencing at 9:00 a.m.,
New York City local time, on September 14, 2004,  and expiring at 5:00 p.m., New
York City local time, on September  14,

<PAGE>

2009, or, if such day is a day on which banking  institutions in the City of New
York are authorized by law to close,  then on the next succeeding day that shall
not be such a day.

     Subject to the restrictions  and limitations set forth above,  this Warrant
may be  exercised by  presentation  and  surrender  hereof to the Company at its
principal  office with the Warrant  Exercise Form attached  hereto duly executed
and  accompanied  by payment  (either in cash or by certified  or official  bank
check, payable to the order of the Company) of the Exercise Price for the number
of shares  specified in such Form and  instruments of transfer,  if appropriate,
duly executed by the Holder.  If this Warrant  should be exercised in part only,
the Company shall, upon surrender of this Warrant for cancellation,  execute and
deliver a new Warrant  evidencing  the rights of the Holder  thereof to purchase
the balance of the shares purchasable hereunder.  Upon receipt by the Company of
this Warrant, together with the Warrant Exercise Form and the Exercise Price, at
its office,  in proper form for  exercise,  the Holder shall be deemed to be the
holder of record of the  shares of Common  Stock  issuable  upon such  exercise,
notwithstanding  that the stock  transfer  books of the  Company  shall  then be
closed or that  certificates  representing such shares of Common Stock shall not
then be  actually  delivered  to the Holder.  The Company  shall pay any and all
documentary  stamp or similar issue or transfer  taxes payable in respect of the
issue or delivery of shares of Common Stock on exercise of this Warrant.

     2.  Reservation  of  Shares.  The  Company  will at all times  reserve  for
issuance and delivery  upon  exercise of this Warrant all shares of Common Stock
of the Company from time to time receivable  upon exercise of this Warrant.  All
such shares shall be duly authorized and, when issued upon such exercise,  shall
be validly  issued,  fully  paid and  nonassessable  and free of all  preemptive
rights.

     3. Warrant Stock  Transfer to Comply with the  Securities  Act of 1933. The
Warrant  Stock  may not be sold  or  otherwise  disposed  of  unless  registered
pursuant to the  provisions of the Securities Act of 1933, as amended (the "1933
Act"), or an opinion of counsel in form and content  satisfactory to the Company
is obtained  stating that such sale or other  disposition  is made in compliance
with  an  available  exemption  from  such  registration.   Any  sale  or  other
disposition  of the Warrant  Stock must also comply  with all  applicable  state
securities laws and regulations.

     4. Fractional Shares. No fractional shares or scrip representing fractional
shares shall be issued upon the exercise of this Warrant,  but the Company shall
issue one  additional  share of its Common  Stock in lieu of each  fraction of a
share otherwise called for upon any exercise of this Warrant.

     5. Exchange,  Transfer,  Assignment of Loss of Warrant. This Warrant is not
registered  under the 1933 Act nor under any applicable  state securities law or
regulation.  This Warrant cannot be sold,  exchanged,  transferred,  assigned or
otherwise  disposed of unless registered  pursuant to the provisions of the 1933
Act or an opinion of counsel in form and content  satisfactory to the Company is
obtained  stating  that such  disposition  is in  compliance  with an  available
exemption  from  registration.  Any  such  disposition  must  also  comply  with
applicable state securities laws and regulations.

                                       2
<PAGE>

     6.  Rights of the  Holder.  The Holder  shall  not,  by virtue  hereof,  be
entitled  to any rights of a  stockholder  of the  Company,  either at law or in
equity,  and the  rights of the Holder are  limited to those  expressed  in this
Warrant.

     7.  Redemption. This Warrant is not redeemable by the Company.

     8.  Anti-Dilution Provisions.

          8.1  Adjustment  for Dividends in Other  Securities,  Property,  Etc.:
Reclassification,  Etc. In case at any time or from time to time after the Grant
Date the holders of Common Stock (or any other securities at the time receivable
upon the  exercise  of this  Warrant)  shall have  received,  or on or after the
record date fixed for the  determination  of eligible  stockholders,  shall have
become  entitled to receive without  payment  therefor:  (a) other or additional
securities or property  (other than cash) by way of dividend,  (b) any cash paid
or  payable  except out of earned  surplus  of the  Company at the Grant Date as
increased  (decreased)  by  subsequent  credits  (charges)  thereto  (other than
credits  in respect of any  capital or paid-in  surplus or surplus  created as a
result  of a  revaluation  of  property)  or (c) other or  additional  (or less)
securities  or  property  (including  cash)  by  way of  stock-split,  spin-off,
split-up,   reclassification,   combination  of  shares  or  similar   corporate
rearrangement, then, and in each such case, the Holder of this Warrant, upon the
exercise thereof as provided in Section 1, shall be entitled to receive, subject
to the limitations and  restrictions  set forth above,  the amount of securities
and  property  (including  cash in the cases  referred to in clauses (b) and (c)
above) which such Holder would hold on the date of such exercise if on the Grant
Date it had been the  holder of record of the  number of shares of Common  Stock
(as constituted on the Grant Date) subscribed for upon such exercise as provided
in Section 1 and had  thereafter,  during the period  from the Grant Date to and
including  the date of such  exercise,  retained  such  shares  and/or all other
additional  (or  less)  securities  and  property  (including  cash in the cases
referred to in clauses (b) and (c) above)  receivable by it as aforesaid  during
such period,  giving effect to all adjustments  called for during such period by
Section 8.2.

          8.2 Adjustment for Reorganization, Consolidation, Merger, Etc. In case
of any reorganization of the Company (or any other  corporation,  the securities
of which are at the time  receivable on the exercise of this Warrant)  after the
Grant  Date  or in  case  after  such  date  the  Company  (or  any  such  other
corporation) shall consolidate with or merge into another  corporation or convey
all or substantially all of its assets to another corporation, then, and in each
such case,  the Holder of this Warrant upon the exercise  thereof as provided in
Section  1  at  any  time  after  the   consummation  of  such   reorganization,
consolidation,  merger or conveyance,  shall be entitled to receive,  in lieu of
the securities and property  receivable  upon the exercise of this Warrant prior
to such consummation, the securities or property to which such Holder would have
been entitled upon such  consummation  if such Holder had exercised this Warrant
immediately  prior  thereto,  all subject to further  adjustment  as provided in
Section 8.1; in each such case, the terms of this Warrant shall be applicable to
the  securities or property  receivable  upon the exercise of this Warrant after
such consummation.

          8.3  Certificate as to  Adjustments.  In each case of an adjustment in
the  number  of  shares  of Common  Stock  (or  other  securities  or  property)
receivable  on the  exercise of the  Warrant,  the  Company at its expense  will
promptly compute such adjustment in accordance with the

                                       3
<PAGE>

terms of the Warrant and prepare a certificate setting forth such adjustment and
showing in detail the facts upon which such  adjustment  is based,  including  a
statement of (a) the consideration received or to be received by the Company for
any  additional  shares  of Common  Stock  issued or sold or deemed to have been
issued or sold,  (b) the number of shares of Common Stock  outstanding or deemed
to be  outstanding,  and (c) the pro forma adjusted  Exercise.  The Company will
forthwith mail a copy of each such certificate to the holder of this Warrant.

          8.4  Notices of Record Date, Etc.

               In case:

               (a) the Company  shall take a record of the holders of its Common
Stock (or other  securities  at the time  receivable  upon the  exercise  of the
Warrant) for the purpose of entitling them to receive any dividend (other than a
cash dividend) or other distribution, or any right to subscribe for, purchase or
otherwise acquire any shares of stock of any class or any other  securities,  or
to receive any other right; or

               (b) of any capital  reorganization  of the Company  (other than a
stock split or reverse stock split), any  reclassification  of the capital stock
of the Company,  any consolidation or merger of the Company with or into another
corporation  (other  than a merger for  purposes of change of  domicile)  or any
conveyance of all or  substantially  all of the assets of the Company to another
corporation; or

               (c) of any voluntary or involuntary  dissolution,  liquidation or
winding-up of the Company,  then,  and in each such case, the Company shall mail
or cause to be mailed to each  holder of the Warrant at the time  outstanding  a
notice  specifying,  as the case may be, (i) the date on which a record is to be
taken for the purpose of such dividend,  distribution or right,  and stating the
amount and character of such dividend,  distribution  or right, or (ii) the date
on  which  such   reorganization,   reclassification,   consolidation,   merger,
conveyance,  dissolution,  liquidation  or winding-up is to take place,  and the
time, if any, is to be fixed,  as to which the holders of record of Common Stock
(or such  other  securities  at the time  receivable  upon the  exercise  of the
Warrant)  shall be entitled to exchange  their  shares of Common  Stock (or such
other  securities)  for  securities  or other  property  deliverable  upon  such
reorganization,    reclassification,    consolidation,    merger,    conveyance,
dissolution,  liquidation  or  winding-up.  Such notice shall be mailed at least
twenty  (20) days prior to the date  therein  specified  and the  Warrant may be
exercised  prior to said date  during the term of the Warrant no later than five
(5) days prior to said date.

               9.  Legend.  In the event of the exercise of this Warrant and the
issuance of any of the Warrant Stock hereunder,  all  certificates  representing
Warrant  Stock  shall  bear on the  face  thereof  substantially  the  following
legends, insofar as is consistent with Delaware law:

        "The shares of common stock  represented by this certificate
        have not been  registered  under the Securities Act of 1933,
        as  amended,  or the  Securities  laws of any state or other
        jurisdiction,  and  may  not  be  sold,  offered  for  sale,
        assigned,  transferred  or  otherwise  disposed  of,  unless
        registered  pursuant  to the  provisions  of that Act and of
        such Securities laws or an opinion of counsel  acceptable to
        the Corporation is

                                       4
<PAGE>

        obtained stating that such disposition is in compliance with
        an available exemption from such registration."

     10. Governing Law and  Jurisdiction.  This Warrant shall be governed by the
internal  laws of the State of  Delaware,  without  regard to  conflicts of laws
principles.  The parties hereto hereby submit to the exclusive  jurisdiction  of
the United States Federal Courts located in the state of New Jersey with respect
to any dispute arising under this Warrant.

     11. Notices.  Notices,  demands and other  communications  given under this
Agreement  shall be in  writing  and shall be deemed  to have  been  given  when
delivered  (if  personally  delivered),  on the  scheduled  date of delivery (if
delivered  via  commercial  courier),  three  days  after  mailed  (if mailed by
certified  or  registered  mail,  return  receipt  requested)  or  when  sent by
facsimile  (if  sent by  facsimile  with  evidence  of  successful  transmission
retained by the  sender);  provided,  however,  that  failure to give proper and
timely  notice as set forth in the "with a copy to"  provisions  below shall not
invalidate a notice  properly and timely given to the associated  party.  Unless
another  address or  facsimile  number is  specified  by notice  hereunder,  all
notices shall be sent as follows:

If to the Holder:                              with a copy to:
----------------                               --------------

--------------------------------------------------------------------------------
Ms. Carole Salkind                             Peter Rosen, Esq.
P.O. Box 1292                                  Rosen & Avigliano
Clifton, NJ  07012                             431 Route 10 East
                                               Randolph, NJ  07689
--------------------------------------------------------------------------------
Facsimile:  973-643-6500                       Facsimile:  973-361-1644
--------------------------------------------------------------------------------

If to the Company:                             with a copy to:
-----------------                              --------------

--------------------------------------------------------------------------------
NCT Group, Inc.                                NCT Group, Inc.
20 Ketchum Street                              20 Ketchum Street
Westport, CT  06880                            Westport, CT  06880
Attention:  Chief Financial Officer            Attention:  General Counsel
--------------------------------------------------------------------------------
Facsimile:  203-226-4338                       Facsimile:  203-226-4338
--------------------------------------------------------------------------------

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed on its
behalf,  in its corporate name, by its duly authorized  officer,  as of the date
first written above.

                                         NCT GROUP, INC.

                                         By:  /s/  Michael J. Parrella
                                              ----------------------------------
                                              Michael J. Parrella
                                              Chairman & Chief Executive Officer

                                       5
<PAGE>

                              WARRANT EXERCISE FORM
                              ---------------------

         (To be executed by the Holder in order to Exercise the Warrant)

               TO:     NCT Group, Inc.
                       20 Ketchum Street
                       Westport, CT  06880
                       Attention:  Chief Financial Officer

     The undersigned hereby irrevocably elects to exercise the within Warrant to
the extent of purchasing _________ shares of Common Stock of NCT Group, Inc. and
hereby  makes  payment at the rate of  $______  per share,  or an  aggregate  of
$________, in payment therefor.

     The  undersigned  represents,  warrants and  certifies  that all offers and
sales  of the  Warrant  Stock  shall  be  made:  (i)  pursuant  to an  effective
registration  statement  under the 1933 Act or pursuant to an exemption from, or
in a transaction not subject to, the registration  requirements of the 1993 Act;
and (ii) in compliance  with applicable  state  securities laws and those of any
other applicable jurisdiction.

Dated:
        -------------------

                                                  ------------------------------
                                                  Name of Warrant Holder

                                                  ------------------------------
                                                  Signature

                ------------------------------------------------

                       INSTRUCTIONS FOR ISSUANCE OF STOCK

         (if other than to the registered holder of the within Warrant)

Name:
       --------------------------------------------------------------------
        (Please type or print in block letters)

Address:
         ------------------------------------------------------------------

Social Security or Taxpayer Identification Number:
                                                   ------------------------

                                       6Exhibit 10(ff)

                                    AGREEMENT

This  Agreement,  dated as of July 30, 2004 between  LightSpeed  Networks,  Inc.
("LightSpeed"),  a New York  corporation  having a place of  business as 33 High
Way,  Chappaqua,  NY 10514, and NCT Group, Inc. ("NCT"), a Delaware  corporation
and  having a place of  business  at 20  Ketchum  Street,  Westport,  CT  06880,
describes the arrangements, terms and conditions under which both LightSpeed and
NCT agree to proceed.

"NCT," as used in this Agreement shall mean NCT Group,  Inc. and its affiliates,
direct and indirect subsidiaries and the  successors-in-interest of any thereof;
provided,  however, that (a) as to stock options and compensation obligations in
Sections  4 and 5 hereof,  "NCT"  shall mean only NCT  Group,  Inc.;  and (b) if
Artera  Group,  Inc.  ("Artera"),  which is currently a subsidiary of NCT Group,
Inc.,  is no longer an affiliate or direct or indirect  subsidiary of NCT Group,
Inc. (an "Artera  Spin-Off"),  this  Agreement,  as it relates to Artera,  shall
automatically become an agreement between Artera and LightSpeed, with references
herein to "NCT" being deemed  references to "Artera," with  obligations  arising
under this  Agreement  prior to the Artera  Spin-Off  Date that relate to Artera
becoming  obligations  solely of Artera and with Artera's address and fax number
for notices  under this  Agreement  being those of Artera's  principal  place of
business immediately following the Artera Spin-Off. In such event, however, this
Agreement  as it relates to NCT Group,  Inc. and its  affiliates  and direct and
indirect subsidiaries other than Artera would remain in effect.

1.   Duties of LightSpeed:  LightSpeed will provide such consulting services and
     advice  pertaining to NCT's  business  affairs as NCT may from time to time
     reasonably  request.  Without  limiting the  generality  of the  foregoing,
     LightSpeed  will assist NCT,  and in  particular  Artera,  in  establishing
     distribution agreements, large end user sales, resellers, capital, funding,
     and joint venture partners and in maintaining  Artera's  relationship  with
     Avaya Inc. and its subsidiaries (as applicable, "Avaya").

2.   Term of  Agreement:  The initial term of this  Agreement  shall be from the
     date hereof to July 30, 2006, but will automatically be extended beyond the
     expiration  of such initial term for  additional  consecutive  one (1) year
     terms upon the  anniversary of the  commencement  of each one (1) year term
     unless  terminated by either party upon written notice to the other no less
     than ninety (90) days,  prior to the expiration of each respective term. In
     addition,  either party may terminate this Agreement upon twenty (20) days'
     prior  written  notice to the other party for the  material  breach of this
     Agreement  by such other  party not cured by the end of the notice  period,
     and NCT may  terminate  this  Agreement  upon ten (10) days' prior  written
     notice to  LightSpeed  in the event that  Jonathan M.  Charry,  the current
     President of LightSpeed ("Charry"),  is no longer an officer or employee of
     LightSpeed  or  otherwise  performing  under this  Agreement on its behalf.
     Termination shall in no way affect transactions already completed for which
     compensation is due to LightSpeed as described in Section 5 below.

3.   Time and  Non-Compete:  LightSpeed shall make available such time as it, in
     its sole  discretion,  shall deem  appropriate  for the  performance of its
     obligations  under this Agreement.  NCT acknowledges that LightSpeed or its
     employees may perform services for other companies, except that it and they
     may not do so for companies  that directly  compete with NCT (including its
     subsidiaries) at the time.

<PAGE>

4.   Charry Stock Options:  For the benefit of  LightSpeed,  with respect to all
     options to purchase shares of common stock of NCT that were owned by Charry
     as of April 30, 2004 (the date as of which  Charry  resigned as an employee
     of NCT, referred to herein as the "Resignation Date"),  subject to approval
     or ratification by the Board of Directors or Compensation Committee of NCT,
     (a) for any options that would otherwise have expired  automatically  three
     (3) months after the  Resignation  Date, NCT shall be deemed to have waived
     such automatic  expiration;  and (b) any options (including those described
     in clause (a) above)  that are not  vested as of the date  hereof  shall be
     deemed vested as of the date hereof.

5.   Compensation:  As compensation for  LightSpeed's  services  hereunder,  NCT
     shall promptly pay to LightSpeed the following:

     (a)  Raising  Capital and Debt: A fee shall be paid to  LightSpeed of 5% of
          the equity  capital  and 1% for debt  obligations  raised for NCT from
          those parties  listed as  "Investors"  on Schedule A attached  hereto.
          LightSpeed will also receive five-year warrants, exercisable as of the
          date of  issuance,  to purchase an amount of equity in NCT equal to 5%
          of the equity  sold,  at the same price as the  equity  sold.  "Equity
          capital," as used  herein,  shall  include  funds used to purchase (i)
          debt obligations that are convertible into equity, (ii) obligations or
          equity  containing "put" options,  (iii) preferred stock of any nature
          and (iv) any other NCT  obligations in which the holder has a right to
          acquire an equity interest in NCT.

     (b)  Licensing and Distribution  Fees: A fee shall be paid to LightSpeed of
          5% of the gross  revenues  received by NCT, when  received,  under any
          licensing and/or distribution agreements between NCT and those parties
          listed on Schedule A attached ---------- hereto as "Business Targets."
          "Gross revenues," as used herein,  shall mean all revenues received by
          NCT under a licensing and/or distribution  agreement between NCT and a
          Business Target.  The 5% fee, as discussed above,  shall be paid for a
          period of three (3) years from the date that gross  revenues are first
          received by NCT from each Business  Target,  and  thereafter,  the fee
          shall  be  3%  of  gross   revenues   from  such   Business   Targets.
          Notwithstanding   the   foregoing,   with  respect  to  licensing  and
          distribution  of Artera's  electronic data  transmission  optimization
          products,  LightSpeed's  right to compensation under this Section 5(b)
          shall be limited to Artera's  residential and small business  versions
          of its Artera Turbo product unless Artera  expressly  otherwise agrees
          in writing with respect to a specified Business Target.

     (c)  Licensing  and  Distribution  Fees for  Avaya:  A fee shall be paid to
          LightSpeed of 2% of the gross revenues received by NCT, when received,
          from Avaya.

     (d)  Joint Venture  Income:  In the event NCT enters into a joint  venture,
          partnership  or  other  business  relationship  with any  Investor  or
          Business  Target  that  results in gross  revenues  being paid to NCT,
          LightSpeed  will receive a fee of 5% of said gross revenues  received,
          when  received,  that result from the  aforementioned.  The 5% fee, as
          discussed  above,  shall be paid for a period of three (3) years  from
          the date  that  gross  revenues  are first  received  by NCT from each
          Investor or Business Target and

                                       2
<PAGE>

          thereafter,  the fee shall be 3% of gross revenues from such Investors
          and Business Targets.

     (e)  Sale of NCT: In the event any  Investor or Business  Target  purchases
          all  or a  majority  interest  of  NCT  Group,  Inc.  or  its  assets,
          LightSpeed shall receive 6% of such purchase price.  "Purchase price,"
          as used herein,  shall mean any compensation of any nature received by
          NCT or its shareholders  from such  transaction,  including any legal,
          beneficial or equitable  interest in a business  such as stock,  stock
          options, partnership interests, membership interests, beneficial trust
          interests  and similar  types of  interests,  as well as any  deferred
          compensation when received.

     (f)  Adding and Deleting from Schedules: A prospective investor or business
          target  shall be added to  Schedule A as an  "Investor"  or  "Business
          Target" only with written  consent from NCT. Any such  prospect may be
          removed from  Schedule A by NCT via written  notice to  LightSpeed  if
          LightSpeed does not enter into a business relationship with NCT within
          three (3) months of its  addition to  Schedule A. If in NCT's  opinion
          reasonable  progress is being made  towards  entering  into a business
          relationship, NCT shall refrain from sending such removal notice until
          such time as the prospect is deemed by NCT to be inactive.

     (g)  Equity:  LightSpeed  may  request any of the  above-described  fees as
          equity in NCT instead of cash.  NCT at its sole  discretion may decide
          to honor the request.  If NCT decides to honor the request,  the price
          of the equity will be mutually  agreed upon by the parties at the time
          of the  request  but in no event will such  price be greater  than the
          price of the last capital  infusion into NCT by an unaffiliated  third
          party in an amount of at least $1,000,000.  LightSpeed and NCT may, on
          a comparable  basis,  agree that LightSpeed will receive equity in any
          joint venture or similar transaction  referred to in this Section 5 in
          lieu of all or part of the cash fee provided for herein.

     (h)  Waiver:  Notwithstanding  the foregoing  provisions of this Section 5,
          LightSpeed   hereby   irrevocably   waives  the  first   $421,500   in
          compensation  that may become due and payable to it under this Section
          5. If any of such amount  would have been payable in assets other than
          cash (e.g., securities),  such assets shall be valued, for purposes of
          calculating the extent to which such waiver has been satisfied, at the
          same valuation as in the NCT transaction to which such assets relate.

6.   Expenses  and  Use of  NCT  Facilities:  LightSpeed  agrees  that  ordinary
     expenses  incurred by it in performing under this Agreement will be paid by
     LightSpeed,  except  as  agreed  in  advance  in each  instance  by NCT and
     LightSpeed. NCT shall permit Charry, acting on behalf of LightSpeed, use of
     the NCT office facilities,  including an office,  computer (with e-mail and
     Internet access capability),  telephone, facsimile and use of NCT's support
     personnel,  for the purpose of performing  services on behalf of LightSpeed
     under this Agreement. LightSpeed shall ensure that Charry complies with all
     building  and  equipment  use  policies  applied  generally  by  NCT or its
     landlord.

7.   Relationship:  Nothing herein shall constitute LightSpeed as an employee or
     agent of NCT (it being  understood  that  LightSpeed will be an independent
     contractor). Except to

                                       3
<PAGE>

     such  extent as might  hereinafter  be  expressly  agreed for a  particular
     purpose.  LightSpeed shall not have the authority to obligate or commit NCT
     in any manner whatsoever.

8.   Information:  NCT  acknowledges  that  LightSpeed  will rely on information
     furnished by NCT concerning  NCT's  business  affairs  without  independent
     certification  and  represents  that such  information  will be  materially
     complete and correct.

9.   Confidentiality: LightSpeed shall comply with the confidentiality rules set
     forth in Schedule B attached hereto.

10.  Indemnification:  Each party hereto  agrees to indemnify  and hold harmless
     the other party, its affiliates,  partners, officers, directors,  employees
     and agents, and each person who controls any thereof,  from and against any
     losses,  claims,  damages,  liabilities and expenses whatsoever  (including
     reasonable attorneys' fees, as incurred) (collectively, "Losses"), to which
     they or any of them may  become  subject  arising  out of a breach  of this
     Agreement by the indemnifying  party. In addition,  NCT agrees to indemnify
     and  hold  harmless  LightSpeed,   its  affiliates,   partners,   officers,
     directors, employees and agents, and each person who controls LightSpeed or
     any thereof,  from and against any Losses, to which they or any of them may
     become  subject  arising  out  of  LightSpeed's   performance   under  this
     Agreement, except as set forth above and except in the event of intentional
     wrongdoing, bad faith or gross negligence by LightSpeed.  LightSpeed agrees
     to indemnify  and hold harmless NCT, its  affiliates,  partners,  officers,
     directors,  employees  and agents,  and each person who controls NCT or any
     thereof,  from and  against  any  Losses,  to which they or any of them may
     become subject  arising out of LightSpeed's or Charry's use of NCT's office
     facilities as described in Section 6 hereof.

11.  Assignment:  This  Agreement may not be assigned by LightSpeed  without the
     prior written consent of NCT.

12.  Governing Law: This  Agreement  shall be deemed to be a contract made under
     the laws of the State of Connecticut  in the Untied States of America,  and
     for all purposes  shall be construed  in  accordance  with the laws of said
     state and country.

13.  Miscellaneous:

     (a)  NCT agrees to provide  LightSpeed,  in regard to any transaction  that
          does or might  generate a right to  compensation  of LightSpeed  under
          Section 5 hereof, with a timely copy of all letters of intent, offers,
          counter-offers,  final  agreements,  closing  statements and any other
          information   or  materials   which  are  or  might  be  pertinent  to
          calculating such compensation.

     (b)  Each party  represents and warrants to the other that it has the right
          and power to enter into and perform this Agreement,  and that entering
          into  and  performing  this  Agreement  do not and  will  not  breach,
          conflict  with or  constitute  a default  under  any other  agreement,
          instrument or judicial or  regulatory  order to which such party is or
          may become bound.

                                       4
<PAGE>

     (c)  Each of the undersigned signatories,  on behalf of NCT and LightSpeed,
          respectively, represents and warrants that he or she has the authority
          to execute and deliver this Agreement.

     (d)  No  notices  hereunder  shall  be  effective  unless  in  writing  and
          delivered  by hand,  by courier or  facsimile,  or mailed by certified
          mail,  postage  prepaid,   return  receipt  requested,   and  properly
          addressed to the intended recipient as follows:

             If to NCT:                         NCT Group, Inc.
                                                20 Ketchum Street
                                                Westport, CT  06880
                                                Attn: Chief Financial Officer
                                                Facsimile: 203-226-4338

             If to LightSpeed:                  LightSpeed Networks, Inc.
                                                33 High Way
                                                Chappaqua, NY  10514
                                                Attn: Jonathan M. Charry
                                                Facsimile: 914-238-1333

          Either party may change its address or facsimile number for notice via
          a notice sent as aforesaid.

     (e)  This Agreement  constitutes the entire  agreement  between the parties
          hereto with respect to the subject  matter hereof and  supersedes  any
          and all other prior or  contemporaneous  written or oral agreements or
          understandings  between  the  parties  with  respect  to such  subject
          matter.

     (f)  This  Agreement  may not be  amended  except by a  written  instrument
          executed by both parties hereto.

AGREED AND ACCEPTED:
-------------------

NCT GROUP, INC.

By:  /s/  Michael J. Parrella
     ---------------------------------
          Michael J. Parrella
          Chairman & CEO

LIGHTSPEED NETWORKS, INC.

By:  /s/  Jonathan M. Charry
     ---------------------------------
          Jonathan M. Charry
          President

                                       5
<PAGE>

                           ---------------------------

The undersigned,  Artera Group, Inc., a Delaware corporation, hereby accepts and
agrees to the provisions of the second  introductory  paragraph of the foregoing
Agreement.

ARTERA GROUP, INC.

By:  /s/  Michael J. Parrella
     ---------------------------------
          Michael J. Parrella
          Chairman & CEO

                                       6
<PAGE>

                                   SCHEDULE A
                                   ----------

Investors:
---------

Greenfield Capital
Salomon Smith Barney
Merrill Lynch
Soundview Partners
First American Financial
Hudson Capital Partners
JP Morgan
Deutsche Bank Securities

Business Targets:
----------------

Hydro Quebec
Con Edison
Manitoba Hydro
ABB
Ciba-Geigy
Alcatel
Alstom
Aventis
France Telecom
Schneider
Akzo Nobel
Sydkraft
Vattenfall

                                       7
<PAGE>

                                   SCHEDULE B
                                   ----------

1.   For purposes of this Agreement,  "Confidential  Information" shall mean all
     information  disclosed by NCT to LightSpeed  that relates in any way to NCT
     or  NCT's   business,   operations,   properties   or  finances.   However,
     Confidential  Information  does  not  include  information  that  (a) is or
     becomes  generally  available to the public through no fault of LightSpeed,
     (b) was  transmitted  to  LightSpeed  by an entity  other  than NCT that to
     LightSpeed's knowledge is not bound by a confidentiality  obligation to NCT
     and is not prohibited from transmitting the information to LightSpeed,  (c)
     was already in LightSpeed's possession prior to receipt from NCT or (d) was
     independently  developed by  LightSpeed  without  reliance on  Confidential
     Information.

2.   LightSpeed  will  not,  without  NCT's  prior  written   consent,   divulge
     Confidential   Information  to  any  third  parties   except   LightSpeed's
     authorized  representatives  on a need to know  basis  in  connection  with
     LightSpeed's interest in a possible business  transaction,  relationship or
     arrangement with, or investment in, NCT.

3.   LightSpeed   acknowledges  that  any  unauthorized  use  or  disclosure  of
     Confidential   Information  will  constitute  a  material  breach  of  this
     Agreement  and would  cause  damage to NCT for  which  LightSpeed  would be
     responsible.

4.   LightSpeed  will  promptly  return  to  NCT  or  destroy  all  Confidential
     Information,  plus all notes and derivative  documents,  at the time of any
     such  request by NCT to do so and will make no further use of  Confidential
     Information thereafter.

5.   All Confidential  Information supplied under this Agreement is delivered on
     an "as is" basis,  with no warranty as to accuracy or  suitability  for any
     particular use.

6.   The  obligations  in this  Schedule B shall  survive the  expiration or any
     termination of this Agreement for a period of five (5) years.

                                       8

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