Document:

PREFERRED SHARE PURCHASE AGREEMENT
                                  by and among
                              WORLDWIDE FIBER INC.,
                                    DWF SRL,
                            GSCP3 WWF (BARBADOS) SRL,
                               WWF (BARBADOS) SRL,
                          PROVIDENCE EQUITY FIBER L.P.,
                                       and
                               TYCO GROUP S.A.R.L.

                                   dated as of
                                September 7, 1999

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                                Table of Contents

                                                                            Page

SECTION 1.          Issuance and Sale of Preferred Shares.....................1
         1.1.       The Purchase..............................................1
         1.2.       The Closing...............................................1
         1.3.       Deliveries at the Closing.................................2
         1.4.       Purchase Price Adjustment.................................2

SECTION 2.          Representations and Warranties of the Corporation.........5
         2.1.       Organization and Good Standing; Power and Authority;
                      Qualifications..........................................5
         2.2.       Authorization of the Documents............................6
         2.3.       Capitalization............................................6
         2.4.       Authorization and Issuance of Share Capital...............8
         2.5.       Reservation of Shares.....................................8
         2.6.       Financial Statements......................................9
         2.7.       Absence of Undisclosed Liabilities........................9
         2.8.       Absence of Changes.......................................10
         2.9.       No Conflict..............................................11
         2.10.      Agreements...............................................11
         2.11.      Intellectual Property Rights.............................12
         2.12.      Equity Investments; Subsidiaries.........................14
         2.13.      Corporate Minute Books...................................14
         2.14.      Suitability..............................................14
         2.15.      Assets...................................................15
         2.16.      Employee Benefit Plans...................................15
         2.17.      Labor Relations; Employees...............................17
         2.18.      Litigation; Orders.......................................18
         2.19.      Compliance with Laws.....................................18
         2.20.      Compliance with Telecommunications Laws..................19
         2.21.      Telecommunications Licenses..............................21
         2.22.      Licenses, Permits and Rights-of-Way......................21
         2.23.      Offering Exemption.......................................22
         2.24.      Related Transactions.....................................22
         2.25.      Boycott..................................................23
         2.26.      Taxes....................................................23
         2.27.      Environmental Protection.................................26
         2.28.      Consents.................................................27
         2.29.      Insurance................................................27
         2.30.      Brokers..................................................28
         2.31.      Suppliers and Customers..................................28
         2.32.      Real Property............................................28

                                      -i-
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                                                                            Page

         2.33.      Investment Banking Services..............................28
         2.35.      Previous Issuances Exempt................................29
         2.36.      Investment Company Act...................................29
         2.37.      Disclosure...............................................29

SECTION 3.          Representations, Warranties and Acknowledgments of
                      the Investors..........................................29

SECTION 4.          Covenants Prior to Closing...............................32
         4.1.       Cooperation by Parties; Satisfaction of Closing
                      Conditions.............................................32
         4.2.       Conduct of Business......................................32
         4.3.       Required Notices.........................................33
         4.4.       No Shop..................................................33

SECTION 5.          Other Covenants..........................................34
         5.1.       Use of Proceeds..........................................34
         5.2.       Shareholders Agreement...................................34
         5.3.       HSR Filing...............................................34
         5.4.       Tax Indemnity............................................34
         5.5.       Roll-Up Transactions.....................................36

SECTION 6.          Conditions to the Purchase...............................36
         6.1.       Conditions to Obligations of Each Party..................36
         6.2.       Conditions to Obligations of the Investors...............36
         6.3.       Conditions to the Obligations of the Corporation.........38
         6.4.       Default by an Investor...................................39

SECTION 7.          Termination..............................................39

SECTION 8.          Transfer Taxes...........................................39

SECTION 10.         Expenses.................................................39

SECTION 11.         Indemnification..........................................40
         11.1.      General Indemnification..................................40
         11.2.      Indemnification Principles...............................41
         11.3.      Claim Notice.............................................42
         11.4.      Claim Procedure..........................................42

SECTION 12.         Remedies.................................................43

SECTION 13.         Further Assurances.......................................44

SECTION 14.         Successors and Assigns...................................44

                                      -ii-
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                                                                            Page

SECTION 15.         Entire Agreement.........................................44

SECTION 16.         Notices..................................................44

SECTION 17.         Amendments...............................................47

SECTION 18.         Counterparts.............................................47

SECTION 19.         Headings.................................................48

SECTION 20.         Nouns and Pronouns.......................................48

SECTION 21.         Governing Law; Waiver of Jury Trial......................48

SECTION 22.         Severability.............................................48

SECTION 23.         Currency.................................................48

SECTION 24.         No Partnership...........................................48

                                     -iii-
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                                    Schedules

Schedule A                       Articles of Amendment
Schedule 1.1                     List of Investors
Schedule 2.1(a)                  WFI Entities, Organization and Good Standing
Schedule 2.3(a)                  Capitalization
Schedule 2.3(b)(i)               List of Shareholders
Schedule 2.3(b)(ii)              Common Share Equivalents
Schedule 2.3(b)(iv)              WFI Share Encumbrances or Restrictions
Schedule 2.3(b)(v)               Nomination or Election of Director Rights
Schedule 2.7                     Undisclosed Liabilities
Schedule 2.8                     Changes
Schedule 2.10(a)                 Agreements
Schedule 2.10(c)                 Fiber Sales Agreements
Schedule 2.10(d)                 Changes in Network Description
Schedule 2.11(d)                 Trademarks
Schedule 2.11(e)(f)              Third Party Intellectual Property
Schedule 2.15(a)                 Encumbrances
Schedule 2.15(c)                 Condemnation Proceedings
Schedule 2.16                    Employee Benefit Plans
Schedule 2.17                    Labor Relations; Employees
Schedule 2.18                    Litigation; Orders
Schedule 2.19                    Non-Compliance with Laws; Licenses
Schedule 2.20(a)                 Compliance with Telecommunications Laws
Schedule 2.20(e)                 Compliance with Communications Act
Schedule 2.21(a)                 Telecommunications Licenses
Schedule 2.22                    Local Licenses, Permits and Rights-of-Way
Schedule 2.24(a)                 Related Transactions
Schedule 2.26                    Taxes
Schedule 2.29                    Insurance
Schedule 2.32                    Real Property
Schedule 3                       U.S. Representations and Warranties
Schedule 4.2                     Conduct of Business
Schedule 5.1                     Use of Proceeds
Schedule 5.2                     Form of Shareholders Agreement
Schedule 6.2(f)                  Form of Registration Rights Agreement
Schedule 6.2(i)                  Form of Opinions

                                      -iv-

<PAGE>

                             Index of Defined Terms

1933 Act.                                            Section 2.6(b)
Access Rights.                                       Section 2.22(b)
Additional Issuance Ratio.                           Section 1.4(b)
Affiliate.                                           Section 1.4(b)
Agreement.                                           recitals
Arrangement.                                         Section 2.27
Articles of Amendment.                               recitals
Balance Sheet.                                       Section 2.6(a)
Benefit Plan.                                        Section 2.16(a)
Board of Directors.                                  Section 6.2(d)
Business Day.                                        Section 1.2
Canadian Securities Laws.                            Section 3(i)
CFC.                                                 Section 2.26(d)
Claim Notice.                                        Section 11.3
Closing.                                             Section 1.2
Closing Date.                                        Section 1.2
Code.                                                Section 2.16(a)
Common Share Equivalents.                            Section 2.3(b)(ii)
Common Shares.                                       Section 2.3(a)(ii)
Communications Act.                                  Section 2.20(e)
Communications statutes.                             Section 2.20(a)
Competition Act.                                     Section 2.18
Contract.                                            Section 2.10
Conversion Shares.                                   Section 2.5
Corporation.                                         recitals
CRTC.                                                Section 2.18
Deductible.                                          Section 11.1
Deemed Outstanding Shares.                           Section 1.4(b)
Defaulted Shares.                                    Section 6.4
Defined Benefit Plan.                                Section 2.16(a)
DLJ.                                                 recitals
Documents.                                           Section 6.2(d)
Employee.                                            Section 2.16(a)
Employee Agreement.                                  Section 2.16(a)
Employee Shares.                                     Section 1.4(b)
Encumbrances.                                        Section 2.15(a)
Environmental Laws.                                  Section 2.27
ERISA.                                               Section 2.16(a)
ERISA Affiliate.                                     Section 11.1
FCC.                                                 Section 2.18
FPHC.                                                Section 2.26(d)

                                      -v-
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GAAP.                                                Section 2.6(a)
Governmental Authority.                              Section 2.26(n)
GSCP Parties.                                        recitals
Hazardous Substances.                                Section 2.27
Hibernia Commitment.                                 Section 6.2(l)
Hibernia Project.                                    Section 2.10(e)
Hibernia Supply Contract.                            Section 2.10(e)
HSR.                                                 Section 5.3
Industry Canada.                                     Section 2.18
Intellectual Property.                               Section 2.11
Investor.                                            recitals
Investor Entity.                                     Section 11.1
Lapsed Options.                                      Section 2.3(c)
Leased Real Properties.                              Section 2.32
Ledcor Roll-Up Agreement.                            Section 2.3(c)
Licenses.                                            Section 2.19(a)
Limit.                                               Section 11.1
Litigation.                                          Section 21
Losses.                                              Section 11.2
Material Adverse Effect.                             Section 2.1
Minority Roll-Up Agreement.                          Section 1.4(b)
Minority Roll-Up Shares.                             Section 1.4(b)
Minority Roll-Up Transaction.                        Section 1.4(b)
Multiemployer Plans.                                 Section 2.16(a)
Network.                                             Section 2.10(d)
Offering Memorandum.                                 Section 2.10(d)
Other Shareholders.                                  Section 1.4(b)
Owned Real Properties.                               Section 2.32
Ownership Regulations.                               Section 2.20(b)
Permits.                                             Section 2.22
Permitted Assigns.                                   Section 14
Permitted Encumbrances.                              Section 1.4(e)
Permitted Lapsed Option Reissuance.                  Section 1.4(b)
Person.                                              Section 2.26(n)
PFIC.                                                Section 2.26(d)
PFIC Annual Information Statement.                   Section 2.26(e)
PHC.                                                 Section 2.26(d)
Preferred Shares.                                    Section 2.3(a)(i)
Prohibited Transaction.                              Section 4.4
Project Subsidiary.                                  Section 4.2(b
Providence.                                          recitals
Purchase.                                            Section 1.1
Purchase Price.                                      Section 1.1

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Purchase Price Adjustment.                           Section 1.4(a)
Real Properties.                                     Section 2.32
Registration Rights Agreement.                       Section 6.2(f)
Release.                                             Section 2.27
Retired Welfare Plan.                                Section 2.16(a)
Securities Act.                                      Section 2.6(b)
Securities Laws.                                     Section 2.35
Series A Non-Voting Preferred Shares.                recitals
Shareholders Agreement.                              Section 5.2
Subsidiary.                                          Section 2.12
Tax Return.                                          Section 2.26
Taxes.                                               Section 2.26
Telecommunications Licenses.                         Section 2.21(a)
Transaction Securities.                              Section 2.5
Transfer Taxes.                                      Section 8
Tyco.                                                recitals
WFI Entities.                                        Section 2.1
WFI Subsidiary.                                      Section 2.12

                                     -vii-
<PAGE>

                              WORLDWIDE FIBER INC.

                       PREFERRED SHARE PURCHASE AGREEMENT

     AGREEMENT, dated as of September 7, 1999 (as amended from time to time,
this "Agreement"), by and among WORLDWIDE FIBER INC., a Canadian corporation
(the "Corporation"), DWF SRL a Barbados company ("DLJ"), GSCP3 WWF (BARBADOS)
SRL, a Barbados company, WWF (BARBADOS) SRL, a Barbados company (collectively,
the "GSCP Parties"), PROVIDENCE EQUITY FIBER L.P., a Delaware limited
partnership ("Providence"), and TYCO GROUP S.A.R.L., a Luxembourg corporation
("Tyco") (each individually an "Investor" and collectively with DLJ, the GS
Parties, and Providence, the "Investors").

                              W I T N E S S E T H :

     WHEREAS, the Corporation wishes to sell to the Investors, and the Investors
wish to purchase from the Corporation, shares of a newly created series of
Preferred Shares, the Series A Non-Voting Preferred Shares (the "Series A
Non-Voting Preferred Shares") with the terms set forth in the Articles of
Amendment of the Corporation in the form included in Schedule A hereto (the
"Articles of Amendment").

     ACCORDINGLY, the parties hereto hereby agree as follows:

     SECTION 1 Issuance and Sale of Preferred Shares.

     1.1. The Purchase. (a) Subject to the terms and conditions set forth in
this Agreement, at the Closing, each Investor shall, severally and not jointly,
purchase from the Corporation and the Corporation shall issue to each Investor,
the number of Series A Non-Voting Preferred Shares set forth opposite such
Investor's name on Schedule 1.1 (the "Purchase"), subject to adjustment as set
forth in Section 1.4, at the purchase price set forth opposite such Investor's
name on Schedule 1.1. The aggregate purchase price to be paid by the Investors
to the Corporation for the Series A Non-Voting Preferred Shares purchased by
them hereunder is U.S. $345,000,000 (the "Purchase Price").

     1.2. The Closing. (a) Subject to the terms and conditions set forth in this
Agreement, the closing of the Purchase (the "Closing") shall take place at the
offices of Fried, Frank, Harris, Shriver & Jacobson, One New York Plaza, New
York, NY 10004 on the first Business Day after the day on which the last of the
conditions set forth in Section 6 hereof shall have been fulfilled or waived
(or, if contemplated to be satisfied simultaneously with the Closing, are
capable of being satisfied) or such other date as may be agreed to in writing by
each of the parties hereto (the "Closing Date"). For purposes of this

<PAGE>

Agreement, "Business Day" means any day other than a Saturday, a Sunday or a day
when commercial banks in New York City or Barbados are required to be closed.

     1.3. Deliveries at the Closing. (a) At the Closing, the Corporation shall
deliver to each Investor a certificate or certificates representing the Series A
Non-Voting Preferred Shares purchased by such Investor, registered in the name
of such Investor or its nominee. Delivery of such certificates to an Investor
shall be made against receipt at the Closing by the Corporation from such
Investor of the Purchase Price, which shall be paid by wire transfer to an
account designated at least one Business Day prior to the Closing by the
Corporation.

     (b) At the Closing, the Corporation will deliver to the Investors, and
the Investors will deliver to the Corporation, the various certificates,
instruments and documents referred to in Section 6 below.

     1.4. Purchase Price Adjustment. (a) In addition to, and without limitation
of all other indemnities in this Agreement, as a protection to the Investors
against the existence of issued shares or other securities of the Corporation
not disclosed in Section 2.3, in the event that, at any time, the representation
and warranty set forth in Section 2.3(c) is determined to have been incorrect as
of the Closing, the Corporation shall issue to the Investors (on a pro rata
basis, based upon the amount of each Investor's original investment), at no
additional cost to the Investors, and as an adjustment to the purchase price
(whether under this paragraph (a) or paragraphs (b) or (c) of this Section 1.4,
a "Purchase Price Adjustment") paid by the Investors per Series A Non-Voting
Preferred Share, an additional amount of Series A Non-Voting Preferred Shares
such that, if such issuance of additional Series A Non-Voting Preferred Shares
had been made at Closing, such representation and warranty would have been true
and accurate in all respects.

     (b) If at any time after the Closing, the Corporation shall either:
(i) subject to paragraph (f) of this Section 1.4, issue any Employee Shares
(other than (x) Common Shares issued upon the exercise of stock options listed
as Common Share Equivalents on Schedule 2.3(b)(ii) (i.e., [ ]* options granted
pursuant to the Worldwide Fiber Inc. 1998 Long Term Incentive and Share Award
Plan (Amended) (the "1998 Plan") (the "Existing 10% Option Pool")) or (y) Common
Shares issued upon the exercise of stock options granted under the New 5% Option
Pool (as defined below) to the extent the grant of such stock options as
Employee Shares previously resulted in an adjustment under this Section 1.4(b)),
Deemed Outstanding Shares, Permitted Reissued Options or Common Shares issued
upon the exercise of Permitted Reissued Options) or (ii) issue any Minority
Roll-Up Shares (except Minority Roll-Up shares issued after September 7, 2000),
then the Corporation shall (in the case of clause (i), at the end of each
calendar quarter (unless otherwise requested by any Investor), and in the case
of clause (ii) immediately) issue to the Investors (on a pro rata basis, based
upon the amount of each Investor's original investment), at no additional cost
to the Investors, and as a Purchase Price Adjustment, a number of Series A
Non-Voting Preferred Shares per each Series A Non-Voting Preferred Share equal
to

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to a request for confidential treatment under Rule 406.

                                      -2-
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                  [

                                                                              ]*

     For purposes of this Agreement:

     "Affiliate" means any partnership, corporation, trust, or other
organization which is controlled by or under common control of the Corporation
or its Subsidiaries.

     "Deemed Outstanding Shares" means (i) any Common Shares or Common Share
Equivalents issuable pursuant to any Contract (as defined in Section 2.10)
entered into by the Corporation prior to the date hereof, or any preemptive
right granted by the Corporation prior to the date hereof, and (ii) 4,500,000
Common Shares issued, or to be issued, in consideration for the acquisition by
the Corporation of fiber assets and related rights and obligations from Ledcor
Industries Limited or Ledcor Industries Inc. under the amended and restated
Share Purchase Agreement entered into on September 7, 1999 between Ledcor
Industries Limited, Ledcor Industries Inc. and the Corporation (the "Ledcor
Roll-Up Agreement"). For greater certainty, Deemed Outstanding Shares do not
include Common Shares issuable pursuant to the Minority Roll-Up Transactions.

     "Employee Shares" means any Common Shares (as defined in Section 2.3(a)) or
Common Share Equivalents (as defined in Section 2.3(b)) issued to directors,
officers, employees or consultants of the Corporation, its Subsidiaries or the
entities permitted under the terms of the 1998 Plan.

     "Lapsed Options" means any stock options listed as Common Share Equivalents
on Schedule 2.3(b)(ii) (options granted pursuant to the Existing Option Pool) or
up to [ ]* options issued by the Corporation pursuant to the 1998 Plan after the
date hereof (the "New 5% Option Pool"), in either case which after the Closing
Date lapses or terminates without being converted or exercised.

     "Minority Roll-Up Shares" means any Common Shares or Common Share
Equivalents issued pursuant to any Minority Roll-Up Transaction.

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to a request for confidential treatment under Rule 406.

                                      -3-
<PAGE>

     "Minority Roll-Up Transaction" means the issuance by the Corporation of
Common Shares or Common Share Equivalents pursuant to any of the Minority
Roll-Up Agreements (or any transactions or series of related transactions with
similar effect).

     "Minority Roll-Up Agreement" means (a) the unanimous shareholder agreement
dated as of May 28, 1999 between Worldwide Fiber Networks Ltd., Canadian
National Railway Company and WFI-CN Fibre Inc., (b) the limited liability
company agreement of Worldwide Fiber IC LLC effective as of May 28, 1999 between
Worldwide Fiber IC Holdings, Inc. and IC Fiber Holdings Inc., and (c) the
shareholders agreement dated December 31, 1998 between the Corporation,
Worldwide Fiber Networks Ltd., Ledcor Industries Inc., Worldwide Fiber (USA),
Inc. (formerly known as Pacific Fiber Link, Inc.), Mi-Tech Communications, LLC,
Ledcor and Michels Pipeline Construction, Inc.

     "Permitted Reissued Option" means any Common Share Equivalent issued in
accordance with the Corporation's stock option plan then in effect to replace
any Lapsed Option with a conversion or exercise price equal to or greater than
the conversion or exercise price of the Lapsed Option (as adjusted to reflect
any stock split, stock dividend, combination, reorganization, reclassification
or other similar event involving Common Shares) and a term no longer than the
original term of the Lapsed Option.

     (c) If, at the time of any Purchase Price Adjustment pursuant to Section
1.4(a) or (b), all Series A Non-Voting Preferred Shares have been converted into
Common Shares, in lieu of issuing Series A Non-Voting Preferred Shares pursuant
to Section 1.4(a) or Section 1.4(b), the Corporation shall promptly issue to the
Investors (on a pro rata basis), at no additional cost to the Investors and as a
Purchase Price Adjustment, an additional amount and kind of Common Shares equal
to the amount and kind of Common Shares issuable upon the conversion (based on
the conversion ratio that would have been in effect if the Series A Non-Voting
Preferred Shares were outstanding and had not been converted into Common Shares)
of the amount of Series A Non-Voting Preferred Shares which would have been
issued with respect to such Purchase Price Adjustment pursuant to Section 1.4(a)
or Section 1.4(b) treating for purposes of such Purchase Price Adjustment the
Series A Non-Voting Preferred Shares as not having been converted into Common
Shares.

     (d) Any additional Series A Non-Voting Preferred Shares and Common Shares
issued to the Investors pursuant to this Section 1.4 shall be treated as if they
were issued on the date hereof and shall reflect any dividends or other
distributions which would have accrued or have been payable with respect to and
the application of any anti-dilution, ratable treatment or similar provisions as
set forth in the Articles of Amendment, applicable law or otherwise which would
have been applicable to such Series A Non-Voting Preferred Shares and Common
Shares had they been issued on the date hereof.

     (e) In connection with any issuance of Series A Non-Voting Preferred Shares
pursuant to this Section 1.4, the Corporation shall reserve a sufficient number
of shares of Class A Non-Voting Common Shares for issuance to the Investors upon
the conversion of

                                      -4-
<PAGE>

the Series A Non-Voting Preferred Shares so issued. Any Series A Non-Voting
Preferred Shares or Common Shares issued to the Investors pursuant to this
Section 1.4 shall, when issued, be validly issued and fully paid and
nonassessable with no personal liability attaching to the ownership thereof
(other than any Encumbrances, as defined in Section 2.15, that exist as a result
of any act, or failure to act, by any current or former holder, whether
beneficial or of record, of such shares, referred to as "Permitted
Encumbrances").

     (f) Section 1.4(b) shall not apply to the issuance of Employee Shares after
the sum of all Employee Shares issued for which adjustment has been made in
accordance with Section 1.4(b)(i) equals 1,982,653 Common Shares or Common Share
Equivalents on an as converted basis (as equitably adjusted to reflect any stock
split, stock dividend, combination, reorganization, reclassification or other
similar event involving Common Shares).

     SECTION 2. Representations and Warranties of the Corporation. The
Corporation hereby represents and warrants to the Investors as of the date
hereof and as of the Closing Date (as though made then and as though the Closing
Date were substituted for the date hereof throughout this Agreement) as follows:

     2.1. Organization and Good Standing; Power and Authority; Qualifications.
The Corporation and each of its subsidiaries (all of which are set forth in
Schedule 2.1(a)) (collectively with the Corporation, the "WFI Entities") (a) is
a corporation, limited liability company, general or limited partnership duly
organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation, organization, amalgamation or continuance, (b)
has all requisite corporate power and authority to own, lease and operate its
properties and to carry on its business as presently conducted and as proposed
to be conducted, and (c) has all requisite corporate power and authority to
enter into and carry out the transactions contemplated by each of the Documents
(as defined in Section 6.2(d)) to which it is a party. Each WFI Entity is
qualified to transact business as an extra-provincial corporation or foreign
corporation in, and is in good standing under the laws of, those jurisdictions
listed on Schedule 2.1(a) in square brackets opposite its name, which
jurisdictions constitute all of the jurisdictions wherein the character of the
property owned or leased or the nature of the activities conducted by it makes
such qualification necessary except where the failure to be so qualified would
not have a material adverse effect on the business, prospects, condition
(financial or otherwise), operations, properties, assets or liabilities of the
WFI Entities taken as a whole (a "Material Adverse Effect"). For all purposes of
this Agreement, the business, prospects, conditions (financial or otherwise),
operations, properties, assets or liabilities of the WFI Entities shall be
deemed to include the business, prospects, condition (financial or otherwise),
operations, properties, assets and liabilities associated with the Fiber Assets
(and the rights, liabilities and obligations associated with the Fiber Assets)
as defined in the Ledcor Roll-Up Agreement.

                                      -5-
<PAGE>

     2.2. Authorization of the Documents. The execution and delivery by the
Corporation of each of the Documents and the performance by the Corporation of
its obligations thereunder has been duly authorized by all requisite corporate
action on the part of the Corporation. As of the date hereof, this Agreement
constitutes, and as of the Closing Date, each of the Documents will constitute,
a legal, valid and binding obligation of the Corporation, enforceable against
the Corporation 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.

     2.3. Capitalization. (a) The authorized capital of the Corporation
immediately following the Closing will consist of:

     (i) Preferred Shares. An unlimited number of Preferred Shares (the
"Preferred Shares") of which 8,866,808 Series A Non-Voting Preferred Shares are
issued and outstanding, no Series B Subordinate Voting Preferred Shares (the
"Series B Voting Preferred Shares") are issued and outstanding and no Series C
Redeemable Preferred Shares are issued and outstanding, and all such shares are
validly issued, fully paid and nonassessable with no personal liability
attaching to the ownership thereof when so issued and delivered and free and
clear of all Encumbrances other than Permitted Encumbrances; and

     (ii) Common Shares. An unlimited number of Class A Non-Voting Shares, an
unlimited number of Class B Subordinate Voting Shares and an unlimited number of
Class C Multiple Voting Shares (together with any common shares of the
Corporation of any other class or series hereafter authorized, the "Common
Shares"), of which no Class A Non-Voting Shares are issued and outstanding,
23,843,500 of Class B Subordinate Voting Shares are issued and outstanding, and
no Class C Multiple Voting Shares are issued and outstanding. All such
outstanding shares are validly issued, fully paid and nonassessable with no
personal liability attaching to the ownership thereof and free and clear of all
Encumbrances other than Permitted Encumbrances.

     (b) Except as set forth in clause (a) above, there will be no share capital
of the Corporation outstanding immediately following the Closing.

     (i) Schedule 2.3(b)(i) Part I hereto contains a complete and correct list
of each holder of record of share capital of each WFI Entity immediately
preceding the Closing, including (A) whether, for purposes of the foreign
ownership and control requirements under the Telecommunications Act and the
rules and regulations promulgated thereunder, such holder is a "Canadian" or a
"non-Canadian," and (B) the number of shares of capital held by each such holder
and the percentage represented by such shares of (1) the outstanding Common
Shares, on a fully diluted basis (assuming the conversion, exchange or exercise
of all outstanding Common Share Equivalents), and (2) the total number of votes
able to be cast on any matter by all voting securities of the Corporation.
Schedule 2.3(b)(i) Part II hereto

                                      -6-
<PAGE>

contains a complete and correct list of each holder of record of share capital
of the Corporation immediately following the Closing.

     (ii) Schedule 2.3(b)(ii) hereto contains a complete and correct list of all
outstanding warrants, options, agreements, convertible securities or other
commitments or outstanding securities convertible into, or exchangeable or
exercisable for, Common Shares (collectively, "Common Share Equivalents"), or
pursuant to which any WFI Entity is or may become obligated to issue any shares
of its capital or other securities, which (A) names the holder of record of such
Common Share Equivalents, (B) and specifies which of the Common Share
Equivalents are, to the knowledge of the Corporation, "Canadian" for purposes of
the foreign ownership and control requirements under the Telecommunications Act
and the rules and regulations promulgated thereunder, and (C) the shares of
capital or other securities required to be issued thereunder as of the date
hereof and as of the Closing Date and the price per share, if any, payable with
respect to the issuance of any share of capital issuable thereunder. Schedule
2.3(b)(ii) also sets forth a true and accurate calculation of the number of the
Deemed Outstanding Shares (as defined in Section 1.4(b)). For greater certainty,
Common Share Equivalents do not include the agreements and commitments related
to the Minority Roll-Up Transactions or the Ledcor Roll-Up Agreement (as defined
in Section 1.4(b)).

     (iii) Except as set forth on Schedule 2.3(b)(i), the Corporation has no
knowledge of the names of any beneficial owners of shares of capital of any WFI
Entity who are not otherwise holders of record. Except as set forth on Schedule
2.3(b)(ii) or as contemplated by the Documents there are, and immediately after
the Closing, there will be, no Common Share Equivalents and no rights, including
preemptive or similar rights, to purchase or otherwise acquire shares or sell or
otherwise transfer shares in the capital (or in the case of non-corporate
entities, other ownership interests) of any WFI Entity pursuant to any provision
of law, the articles of incorporation or the by-laws or similar constituent
documents of such WFI Entity, any agreement to which such WFI Entity is a party
or otherwise.

     (iv) Except as set forth on Schedule 2.3(b)(iv) or as contemplated by the
Documents, none of the WFI Entities is a party to, and, to the Corporation's
knowledge, there are, and immediately after the Closing, there will be, no
agreement, restriction or encumbrance (such as a preemptive or similar right of
first refusal, right of first offer, proxy, voting agreement, voting trust,
registration rights agreement, shareholders' agreement, etc., whether or not the
Corporation is a party thereto) with respect to the purchase, sale or voting of
any shares of capital of any WFI Entities (whether outstanding or issuable upon
conversion, exchange or exercise of outstanding securities) or other securities
of any WFI Entities pursuant to any provision of law, the Articles of
Incorporation or By-Laws, any agreement or otherwise.

     (v) Except (i) as set forth on Schedule 2.3(b)(v), (ii) as contemplated by
the Documents and (iii) for each shareholder's right to vote its Common Shares
for the election of directors, no person has the right to nominate or elect one
or more directors of any WFI Entities.

                                      -7-
<PAGE>

     (c) The Series A Non-Voting Preferred Shares issued to the Investors on the
Closing Date under this Agreement would, if converted into Common Shares, as of
the Closing Date represent, in the aggregate, [ ]* of the outstanding Common
Shares of the Corporation (treating for purposes of these calculations (i) all
Common Shares outstanding on the Closing Date as outstanding, (ii) all Deemed
Outstanding Shares (and any Common Shares or Common Share Equivalents issuable
pursuant to Deemed Outstanding Shares) as outstanding, (iii) all Common Shares
Equivalents outstanding on the Closing Date (or issuable pursuant to Deemed
Outstanding Shares) as having been converted, exchanged, exercised, issued,
and/or outstanding, as the case may be, and the resulting Common Shares as
outstanding, and (iv) all Series A Non-Voting Preferred Shares as having been
converted into outstanding Common Shares).

     2.4. Authorization and Issuance of Share Capital. (a) The authorization,
issuance, sale and delivery of the Series A Non-Voting Preferred Shares pursuant
to this Agreement, and (b) the authorization, reservation, issuance, sale and
delivery of the Conversion Shares, in each case, have been duly authorized by
all requisite corporate action on the part of the Corporation, and when issued,
sold and delivered in accordance with this Agreement, the Transaction Securities
will be validly issued and outstanding, fully paid and nonassessable with no
personal liability attaching to the ownership thereof, free and clear of any
Encumbrances (other than any Permitted Encumbrances) and not subject to
preemptive or similar rights of the shareholders of the Corporation or others.
The terms, designations, powers, preferences and relative, participating,
optional and other special rights, and the qualifications, limitations and
restrictions, of any series of Common Shares, or any series of Preferred Shares
of the Corporation are as stated in the Articles of Amendment and the By-Laws.

     2.5. Reservation of Shares. The Corporation has reserved a sufficient
number of shares of (a) Class A Non-Voting Shares and Series B Voting Preferred
Shares for issuance to the Investors upon the conversion of any Series A
Non-Voting Preferred Shares issued to the Investors in accordance with this
Agreement (including pursuant to the provisions of Sections 1.4(a) and (b)), (b)
Series A Non-Voting Preferred Shares for issuance to the Investors pursuant to
the provisions of Sections 1.4(a) and 1.4(b), (c) Series A Non-Voting Preferred
Shares and Class B Subordinate Voting Shares for issuance to the Investors upon
conversion of the Series B Voting Preferred Shares, and (d) Common Shares for
issuance upon the exercise of all other Common Share Equivalents outstanding on
the date hereof. The Common Shares, Series B Voting Preferred Shares and Series
A Non-Voting Preferred Shares issuable upon conversion of the Series A
Non-Voting Preferred Shares or the Series B Voting Preferred Shares, as the case
may be, shall be referred to collectively as the "Conversion Shares," and the
Conversion Shares, together with the Series A Non-Voting Preferred Shares issued
pursuant to Sections 1.1 and 1.4, shall be referred to collectively as the
"Transaction Securities."

     2.6. Financial Statements. (a) The Corporation has made available to the
Investors the audited divisional statements of operations

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to a request for confidential treatment under Rule 406.

                                      -8-
<PAGE>

and retained earnings and cash flows of the predecessor of the Corporation for
the fiscal years ended March 31, 1996 and August 31, 1997 and the nine months
ended May 31, 1998 and the audited divisional balance sheets of the predecessor
of the Corporation as of August 31, 1996, August 31, 1997 and May 31, 1998. The
Corporation has made available to the Investors the audited consolidated
statements of income, changes in shareholders' equity and cash flows of the
Corporation and its subsidiaries for the period ended December 31, 1998 and the
audited balance sheet of the Corporation and its subsidiaries as of December 31,
1998, and the unaudited consolidated balance sheet of the Corporation and its
subsidiaries as of June 30, 1999 (the "Balance Sheet") and the related unaudited
consolidated statements of income, changes in shareholders' equity and cash
flows of the Corporation and its subsidiaries for the six months ended June 30,
1999. All such financial statements (i) are in accordance with the books and
records of the predecessor of the Corporation, the Corporation and its
subsidiaries, (ii) have been prepared in accordance with generally accepted
accounting principles in the United States ("GAAP") consistently applied (except
that such unaudited financial statements do not contain all of the footnotes
required under GAAP) and (iii) fairly present the financial position of the
predecessor of the Corporation, or the Corporation and its subsidiaries as of
August 31, 1996, August 31, 1997, May 31, 1998, December 31, 1998 and June 30,
1999, respectively, and the results of their operations and cash flows for the
fiscal years ended March 31, 1996 and August 31, 1997 and the nine months ended
May 31, 1998, the fiscal year ended December 31, 1998 and the six months ended
June 30, 1999, respectively.

     (b) The Corporation has made available to the Investors the pro forma
consolidated statements of income of the Corporation and its subsidiaries for
the fiscal year ended December 31, 1998. All such pro forma financial data was
prepared on a basis consistent with the historical financial statements of the
Corporation and its subsidiaries and the predecessor of the Corporation and its
subsidiaries, and give effect to the assumptions used in the preparation thereof
on a reasonable basis in accordance with Regulation S-X under the United States
Securities Act of 1933, as amended (the "1933 Act" or the "Securities Act") and
present fairly the data for the periods presented.

     2.7. Absence of Undisclosed Liabilities. Except as disclosed on Schedule
2.7, no WFI Entity has any liabilities or obligations (whether known or unknown,
accrued, absolute, contingent, unliquidated or otherwise, whether due or to
become due) other than (a) liabilities or obligations reserved against or
otherwise disclosed in the Balance Sheet or the footnotes thereto, (b) other
liabilities or obligations which were incurred after June 30, 1999 in the
ordinary course of business consistent (in amount and kind) with past practice
(none of which is a liability resulting from breach of contract, breach of
warranty, tort, infringement, claim or lawsuit) and which, individually or in
the aggregate, do not exceed US$10,000,000 and (c) liabilities or obligations
under Contracts (but not liabilities for breaches thereof) (x) identified in
Schedule 2.10 or (y) that are not required to be identified on Schedule 2.10
which arise in the ordinary course of business.

     2.8. Absence of Changes. Except as set forth on Schedule 2.8, since
December 31, 1998, each WFI Entity has conducted its business

                                      -9-
<PAGE>

in the ordinary course, consistent with past practice and there has not been:
(a) any material adverse change in the condition (financial or otherwise),
operations, properties, prospects, results of operations, business, assets, or
liabilities of any WFI Entity or any event or condition which could reasonably
be expected to, individually or in the aggregate, have such a material adverse
change, (b) any waiver or cancellation of any material right of any WFI Entity,
or the cancellation of any material debt or claim held by any WFI Entity, (c)
any payment, discharge or satisfaction of any claim, liability or obligation of
any WFI Entity other than in the ordinary course of business, (d) any
Encumbrance upon the assets of any WFI Entity other than an Encumbrance which
arises in the ordinary course of business and which does not materially impair
such WFI Entity's ownership, or use of such asset or ability to obtain financing
by using such asset as collateral, (e) any declaration or payment of dividends
on, or other distribution with respect to, or any direct or indirect redemption
or acquisition of, any securities of any WFI Entity other than as specifically
contemplated in this Agreement, (f) any issuance of any shares, bonds or other
securities of any WFI Entity, (g) any sale, assignment or transfer of any
tangible or intangible assets of any WFI Entity except in the ordinary course of
business, (h) any loan by any WFI Entity to any officer, director, employee,
consultant or shareholder of such WFI Entity (other than advances to such
persons in the ordinary course of business in connection with travel and travel
related expenses), (i) any damage, destruction or loss (whether or not covered
by insurance) materially and adversely affecting the assets, property, financial
condition or results of operations of any WFI Entity, (j) other than salary
increases in the ordinary course of business which would not constitute a Major
Transaction (as defined in the Shareholders Agreement) if the Shareholders
Agreement had been in effect, any increase, direct or indirect, in the
compensation (including bonuses and other benefits) paid or payable to any
officer or director of any WFI Entity or, other than in the ordinary course of
business, to any other employee, consultant or agent of any WFI Entity, (k) any
change in the accounting or tax methods, practices or policies, or any material
tax election, of any WFI Entity, (l) any indebtedness incurred for borrowed
money by any WFI Entity other than (1) in the ordinary course of business or (2)
pursuant to the Hibernia Commitment (as defined in Section 6.2(l)), (m) any
amendment to or termination of any material Contract to which any WFI Entity is
a party, (n) to the best knowledge of the Corporation, any material adverse
change with respect to the regulation of the Corporation and the WFI Entities
taken as a whole or its activities by any administrative agency or governmental
body, (o) any material change in the manner of business or operations of the
Corporation and the WFI Entities taken as a whole (including, without
limitation, any accelerations or deferral of the payment of accounts payable or
other current liabilities or deferral of the collection of accounts or notes
receivable), (p) any capital expenditures with respect to tangible assets or
commitments therefor by any WFI Entity that aggregate (with respect to all WFI
Entities) in excess of US$10,000,000, (q) any amendment of the articles of
incorporation, by-laws or other organizational documents of any WFI Entity other
than as specifically contemplated by this Agreement, (r) any transaction entered
into by a WFI Entity other than in the ordinary course of business or any other
transaction entered into by a WFI Entity material to the Corporation and the WFI
Entities taken as a whole whether or not in the ordinary course of business
other than as specifically contemplated by this Agree-

                                      -10-
<PAGE>

ment, or (s) any agreement or commitment (contingent or otherwise) by any WFI
Entity to do any of the foregoing.

     2.9. No Conflict. The execution, delivery and performance by the
Corporation of the Documents and the consummation by the Corporation of the
transactions contemplated hereby and thereby and the compliance by each WFI
Entity with the provisions hereof and thereof (including, without limitation,
the issuance, sale and delivery by the Corporation of the Transaction
Securities) will not (a) 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 any WFI
Entity, or any of their respective properties or assets, (b) 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, or result in
the creation of any Encumbrance upon any of its properties or assets under, any
Contract, license or permit to which any WFI Entity is a party or (c) violate
the Articles of Continuance, as amended or By-Laws of the Corporation or the
Articles of Incorporation or By-Laws or other organizational documents of any
other WFI Entity.

     2.10. Agreements. (a) Except as set forth on Schedule 2.10(a), no WFI
Entity is a party to any indenture, mortgage, guaranty, lease, license or other
contract, agreement or understanding, written or oral (a "Contract"), including
all construction agreements, asset swap agreements, co-development agreements,
right of way agreements and joint ventures, other than any Contract which (i)
pursuant to its terms, has expired, been terminated or fully performed by the
parties, and in each case, under which no WFI Entity has any liability,
contingent or otherwise, or (ii) involves payments to or from such WFI Entity
(as opposed to an indemnity agreement or similar contract under which a WFI
Entity has any contingent liability) which payments do not aggregate
US$10,000,000, and in each case, is not material to the business or financial
condition of the Corporation and the WFI Entities taken as a whole.

     (b) Complete copies (or, if oral, full and accurate written descriptions)
of all Contracts required to be listed on Schedule 2.10(a), including all
amendments thereto, have been made available to the Investors. Each such
Contract is, as of the date hereof, and will continue to be after the Closing, a
legal, valid and binding obligation, enforceable against, and in full force and
effect against, all the parties thereto on identical terms following the
Closing. There is no breach, violation or default by any WFI Entity and no event
(including, without limitation, the consummation of the transactions
contemplated by the Documents or any pending or threatened (in writing)
termination, cancellation or material modification) which, with notice or lapse
of time or both, would (A) constitute a breach, violation or default by such WFI
Entity under any such Contract or (B) give rise to any lien or right of (or
result in any) termination, modification, cancellation, prepayment, suspension,
limitation, revocation or acceleration against such WFI Entity under, any such
Contract except where such breach, violation or default would not have a
Material Adverse Effect. To the knowledge of the Corporation, no other party to
any of such Contracts is in arrears in respect of the performance or

                                      -11-
<PAGE>

satisfaction of the terms and conditions on its part to be performed or
satisfied under any of such Contracts, no waiver or indulgence has been granted
by any of the parties thereto and no party to any of such Contracts has
repudiated any provision thereof.

     (c) Schedule 2.10(c) is a materially accurate and complete list of fiber
sales agreements, including the parties thereto, and the total revenue and the
booked portions thereof as of June 30, 1999.

     (d) The disclosure contained in the Corporation's final offering memorandum
for $US500,000,000 of 12% Senior Notes due 2009 dated July 23, 1999 (the
"Offering Memorandum"), under the caption "Business--The Network" is accurate
and complete as at the date thereof and there has been no material change in the
facts disclosed therein since July 23, 1999, except as set forth on Schedule
2.10(d) (such disclosure amended as described in Schedule 2.10(d) referred to
herein as the "Network".

     (e) The agreement dated June 18, 1999 with Tyco Submarine Systems Ltd. (the
"Hibernia Supply Contract") (a copy of which agreement has been previously
provided to the Investors and is described in Schedule 2.10(a)) contains an
accurate and complete summary of the current proposed completion schedule for
the Hibernia Project. "Hibernia Project" means the installation of a submarine
cable system connecting cable landing stations located in Lynn, Massachusetts to
Halifax, Nova Scotia to Dublin, Ireland to Southport (Liverpool), U.K. connected
to London, U.K. (vicinity) and connecting to Lynn, Massachusetts, with four
repeated segments of 4 fiber pairs capable of carrying thirty-two 10Gb/s
channels, including the cable landing stations.

     2.11. Intellectual Property Rights. (a) Each WFI Entity owns or has the
right to use pursuant to license, sublicense, agreement or permission all
Intellectual Property (as defined below), individually or in the aggregate,
material to the operation of its business as currently conducted. Each item of
Intellectual Property owned or used by such WFI Entity immediately prior to the
Closing will be owned or available for use by such WFI Entity on identical terms
and conditions immediately subsequent to the Closing. Each WFI Entity has taken
all necessary action, and continues to do so, to maintain and protect their
interest in each item of Intellectual Property that is material to the conduct
of its business.

     (b) To the knowledge of the Corporation, no WFI Entity has interfered with,
infringed upon or misappropriated any Intellectual Property rights of third
parties, and no WFI Entity has received any charge, complaint, claim, demand or
notice alleging any such interference, infringement or misappropriation
(including any claim that it must license or refrain from using any Intellectual
Property rights of any third party). To the knowledge of the Corporation, no
third party has interfered with, infringed upon or misappropriated any
Intellectual Property rights of any WFI Entity.

     (c) No WFI Entity owns any patent or has any pending patent application.

                                      -12-
<PAGE>

     (d) Schedule 2.11(d) identifies all registered or unregistered trademarks
of each WFI Entity. No WFI Entity has granted any license or other permission to
any third party with respect to any of its Intellectual Property with a value of
US$100,000 or greater.

     (e) The Corporation has made available to the Investors a correct and
complete copy of all licenses held by the Corporation and material to the
conduct of its business as presently conducted with respect to its Intellectual
Property, which licenses are identified in Schedule 2.11(e). With respect to
each item of Intellectual Property required to be identified in Schedule 2.11(d)
and Schedule 2.11(e) and except as set forth in Schedule 2.11(e):

     (i) the relevant WFI Entity possesses all right, title and interest in and
to the item, free and clear of any encumbrance, license or other restriction;

     (ii) the item is not subject to any outstanding injunction, judgment,
order, decree, ruling or charge; and

     (iii) such WFI Entity has never agreed to indemnify any Person for or
against any interference, infringement, misappropriation or other conflict with
respect to the item.

     (f) Schedule 2.11(f) identifies each item of Intellectual Property that is
material to the conduct of its business as presently conducted. No WFI Entity
has granted any sublicense or similar right with respect to any such agreements
or Intellectual Property, and, to the knowledge of the Corporation, (i) each
such item of Intellectual Property is not subject to any outstanding injunction,
judgment, order, decree, ruling or change and (ii) no action, suit, proceeding,
hearing, investigation, charge, complaint, claim or demand is pending or to the
knowledge of the Corporation is threatened which challenges the legality,
validity, or enforceability of any such item of Intellectual Property.

     (g) To the knowledge of the Corporation, neither it nor any other WFI
Entity interferes with, infringes upon or misappropriates any Intellectual
Property rights of third parties as a result of the operation of its business
except which interference, infringement or misappropriation would not have a
Material Adverse Effect.

For purposes of this Agreement, "Intellectual Property" means all worldwide (a)
inventions and discoveries (whether patentable or unpatentable and whether or
not reduced to practice), all improvements thereto, and all patents, patent
applications and patent disclosures, together with all reissuances,
continuations, continuations-in-part, revisions, extensions and reexaminations
thereof, (b) trademarks, service marks, trade dress, logos, trade names and
corporate names, together with all translations, adaptations, derivations and
combinations thereof and including all goodwill associated therewith, and all
applications, registrations and renewals in connection therewith, (c)
copyrightable works, all copyrights and all applications, registrations and
renewals in connection therewith, (d) mask works and all applications,
registrations and renewals in connection therewith, (e) know-how, trade secrets
and confidential business in-

                                      -13-
<PAGE>

formation, whether patentable or unpatentable and whether or not reduced to
practice (including ideas, research and development, know-how, formulas,
compositions, manufacturing and production process and techniques, technical
data, designs, drawings, specifications, customer and supplier lists, pricing
and cost information and business and marketing plans and proposals), (f)
computer software (including data and related documentation), (g) other
proprietary rights, (h) copies and tangible embodiments thereof (in whatever
form or medium) and (i) licenses and agreements in connection therewith.

     2.12. Equity Investments; Subsidiaries. (a) Schedule 2.1(a) sets forth a
complete and accurate list of each Subsidiary of the Corporation (each a "WFI
Subsidiary"). Except as set forth on Schedule 2.1(a), the Corporation has never
had, nor does it presently have, any Subsidiaries, nor has it owned, nor does it
presently own, whether directly or indirectly owned, any share capital or other
proprietary interest, directly or indirectly, in any corporation, association,
trust, partnership, joint venture or other entity. For purposes of this
Agreement, the term "Subsidiary" means, with respect to any person, any company,
limited liability company, general or limited partnership or other entity (i) of
which at least a majority of the shares of capital stock or other ownership
interests having ordinary voting power to elect a majority of the board of
directors or other similar managing body of such company, partnership or other
entity are at the time owned or controlled, directly or indirectly, by such
person or (ii) the management of which is otherwise controlled, directly or
indirectly, through one or more intermediaries by such person.

     (b) The capital stock of each WFI Subsidiary held by a WFI Entity is
validly issued and outstanding, fully paid and nonassessable with no personal
liability attaching to the ownership thereof, and is free of any Encumbrances,
except as set forth on Schedule 2.15(a).

     2.13. Corporate Minute Books. The corporate, partnership or limited
liability company records of each WFI Entity are correct and complete in all
material respects. True and complete copies of all minutes of meetings or other
actions by the directors, members, partners, shareholders or incorporators of
each WFI Entity since their respective inceptions to the Closing Date have been
made available to the Investors.

     2.14. Suitability. (a) To the knowledge of the Corporation, none of the
following events has occurred during the last five years with respect to any
director or officer of the Corporation: (i) a petition under Canadian federal
bankruptcy or insolvency laws was filed by or against, or a receiver, fiscal
agent or similar officer was appointed for the business or property of such
person; (ii) such person was convicted in a criminal proceeding or is a named
subject of a pending criminal proceeding; (iii) such person is subject to an
order, judgment or decree enjoining him from engaging in any kind of business
practice or any other activity in connection with the purchase or sale of
securities, or to be associated with persons engaging in such activities; (iv)
such person was found by a court of competent jurisdiction in a civil action or
by a government agency to have violated any secu-

                                      -14-
<PAGE>

rities laws, regulation or policy; or (v) such person has been the subject of
any investigation in respect of the breach or contravention of any securities
law, regulation or policy whether in Canada or any other jurisdiction.

     (b) To the knowledge of the Corporation, none of the events described in
Item 401(f) of Regulation S-K under the 1933 Act, has occurred during the last
five years with respect to any director or officer of the Corporation.

     2.15. Assets. (a) Each WFI Entity has good and marketable title to, or a
valid leasehold interest in or contractual right to use, all of its assets and
properties, free and clear of any mortgages, judgments, claims, liens, security
interests, pledges, escrows, charges or other encumbrances of any kind or
character whatsoever ("Encumbrances") except (i) as disclosed in Schedule
2.15(a), (ii) Encumbrances for taxes not yet due and payable, or (iii)
Encumbrances set forth on Schedule 2.15(a) for taxes and charges and other
claims, the validity of which it is contesting in good faith. The assets and
property owned by, or leased to, any WFI Entity are sufficient for the conduct
of the business and operation of such WFI Entity as presently conducted.

     (b) All buildings, facilities, machinery, equipment, furniture, leasehold
and other improvements, fixtures, vehicles, structures, any related capitalized
items and other tangible property owned by, or leased to any WFI Entity, as of
the date hereof, (i) are in good operating condition and repair (normal wear and
tear excepted), free (in the case of buildings or structures located on the Real
Properties) of any material structural or engineering defects, (ii) are subject
to continued repair and replacement in accordance with past practice and all
material applicable regulations, and (iii) are suitable for their current use in
all material respects.

     (c) Except as set forth on Schedule 2.15(c), no WFI Entity has received
written notice of, or has knowledge of, any pending, threatened or contemplated
condemnation proceeding or similar taking affecting the assets (including,
without limitation, any assets comprising or relating to the Corporation's fiber
optic network of such WFI Entity (including the Real Properties, as defined in
Section 2.32) which, if condemned or taken, would constitute a Material Adverse
Effect.

     2.16. Employee Benefit Plans. (a) Schedule 2.16 hereto sets forth all
Benefit Plans and Employee Agreements. For purposes of this Agreement (i)
"Benefit Plan" means each plan, program, policy, payroll practice, contract,
agreement or other arrangement, or commitment therefor, providing for
compensation, severance, termination pay, pension, retirement or any other
post-termination benefit, performance awards, share or share-related awards,
fringe benefits or other employee benefits of any kind, whether formal or
informal, funded or unfunded, written or oral, which is now or previously has
been sponsored, maintained, contributed to or required to be contributed to by
any WFI Entity or pursuant to which any WFI Entity has any liability, contingent
or otherwise; (ii) "Employee Agreement" means each management, employment,
bonus, option, equity (or equity related), severance, consulting, noncompete,
confidentiality or similar agreement or con-

                                      -15-
<PAGE>

tract between any WFI Entity and any current, former or retired employee,
officer, consultant, independent contractor, agent or director of such WFI
Entity (an "Employee") who receives or received annual salary from such WFI
Entity in excess of US$150,000 (excluding written offers of employment at will
that do not include any severance benefits other than those to which the
Employee may be entitled under applicable law); and (iii) "Defined Benefit Plan"
means any "registered pension plans" (as defined in the Income Tax Act (Canada))
or any "defined benefit plan" (as defined in the Employee Retirement Income
Security Act of 1974, as amended ("ERISA") Section 3(35)); (iv) "Multiemployer
Plans" means any "multiemployer plan" (as defined in ERISA Section 3(37)) as to
which any WFI Entity or ERISA Affiliates (as defined below) is required to
contribute; and (v) "Retired Welfare Plan" means any Benefit Plan which
provides, or has any liability to provide, life insurance or medical, severance
or other employee welfare benefits to any Employee beyond his or her retirement
or termination of employment, except as required by Section 4980B of the
Internal Revenue Code of 1986, as amended (the "Code"). No WFI Entity or ERISA
Affiliate currently sponsors, maintains, contributes to, or is required to
contribute to, and no WFI Entity or ERISA Affiliate has any material liability
contingent or otherwise with respect to any Defined Benefit Plan, Retired
Welfare Plan or Multiemployer Plan.

     (b) The Corporation has made available to the Investors current, accurate
and complete copies of all documents embodying or relating to each Benefit Plan
and each Employee Agreement, including all amendments thereto, trust or funding
agreements relating thereto (if any), the most recent annual report (Series 5500
and related schedules) required under ERISA (if any), summary annual reports,
the most recent determination letter (if any) received from Revenue Canada or
the IRS, the most recent summary plan description (with all material
modifications) (if any), if the Benefit Plan is funded, the most recent annual
and periodic accounting of Benefit Plan assets, the most recent actuarial
report, if any, prepared for each Benefit Plan, and all material communications
to any Employee or Employees relating to any Benefit Plan or Employee Agreement
which could materially increase the liability under any such plan or agreement.

     (c) To the knowledge of the Corporation, no Employee has been hired in
violation of any restrictive covenant or any non-compete agreement with any
other person or entity.

     (d) With respect to each Benefit Plan and/or Employee Agreement, as the
case may be, (i) each WFI Entity has performed all obligations (including
contribution obligations) required to be performed by it under or in respect of
each Benefit Plan and Employee Agreement and no WFI Entity is in default under
or in violation of, any Benefit Plan or Employee Agreement except where such
default or violation would not have a Material Adverse Effect, (ii) each Benefit
Plan has been established and maintained in accordance with its terms and in
material compliance with all applicable Canadian and non-Canadian laws,
statutes, orders, rules and regulations, including without limiting the
foregoing, the timely filing of all required reports, documents and notices,
where applicable, with any governmental agency (Canadian or non-Canadian), (iii)
each WFI Entity has complied with all of its obligations un-

                                      -16-
<PAGE>

der each Employee Agreement and each Employee Agreement is presently, and has at
all times in the past been, in compliance with all statutes, orders, rules and
regulations applicable to it, (iv) to the knowledge of the Corporation, each
Employee Agreement that is a confidentiality or other similar agreement is fully
enforceable in accordance with its terms and, to the knowledge of the
Corporation, no person or entity is presently, or has at any time in the past
been, in violation of any of the terms of any such Employee Agreement, (v) each
Benefit Plan intended to qualify under Section 401 of the Code has received or
has timely applied for a determination letter by the IRS to the effect that each
such Benefit Plan is so qualified and that each trust forming a part of any such
Benefit Plan is exempt from tax pursuant to Section 501(a) of the Code and, to
the knowledge of the Corporation, no circumstances exist which could adversely
affect this qualification or exemption; (vi) no material "prohibited
transaction," within the meaning of Section 4975 of the Code or Section 406 of
ERISA, has occurred with respect to any Benefit Plan; (vii) no action or failure
to act and no transaction or holding of any asset by, or with respect to, any
Benefit Plan has or may subject any WFI Entity or any fiduciary to any material
tax, penalty or other liability, whether by way of indemnity or otherwise,
(viii) there are no actions, proceedings, arbitrations, suits, claims or other
similar proceedings pending, or to the knowledge of the WFI Entities, threatened
or anticipated (other than routine claims for benefits) against any WFI Entity
or any administrator, trustee or other fiduciary of any Benefit Plan with
respect to any Benefit Plan or Employee Agreement, or against any Benefit Plan
or against the assets of any Benefit Plan, and (ix) no Benefit Plan is under
audit or investigation by any governmental agency (Canadian or non-Canadian),
and to the knowledge of the WFI Entities, no such audit or investigation is
pending or threatened.

     (e) The execution of, and performance of the transactions contemplated in,
this Agreement or the other Documents will not (either alone or upon the
occurrence of any additional or subsequent events) (i) constitute an event under
any Benefit Plan or Employee Agreement that will or may result in any payment
(whether of severance pay or otherwise), acceleration, forgiveness of
indebtedness, vesting, distribution, increase in benefits or obligations to fund
benefits with respect to any Employee or (ii) result in the triggering or
imposition of any restrictions or limitations on the right of any WFI Entity to
amend or terminate any Benefit Plan or (iii) result in any payment made or to be
made by any WFI Entity constituting an "excess parachute payment" within the
meaning of Section 280G of the Code.

     2.17. Labor Relations; Employees. Schedule 2.17 hereto lists all employees
of any WFI Entity with either (i) an annual base salary in excess of US$150,000
or (ii) employed under terms of written employment agreements that are not
terminable upon giving reasonable notice in accordance with applicable law that
provide for severance, change of control or other similar compensation
materially in excess of the amounts that would otherwise be payable to such
employee under applicable statutes or at common law. Except as listed on
Schedule 2.17, no WFI Entity is bound by a change of control provision or change
of control agreement in respect of any employee of a WFI Entity. Except as set
forth on Schedule 2.17 hereto, (a) no WFI Entity is delinquent in payments to
any of its employees, for any wages, salaries, commissions, bonuses or other

                                      -17-
<PAGE>

compensation for any services performed through the date hereof or amounts
required to be reimbursed by them through the date hereof, (b) each WFI Entity
is in material compliance with all applicable Canadian and non-Canadian federal,
provincial, state and local laws, rules and regulations respecting employment,
employment practices, occupational health and safety, workers' compensation, pay
equity, labor, terms and conditions of employment and wages and hours, (c)
except as listed on Schedule 2.17, no WFI Entity is bound by or subject to (and
none of its assets or properties is bound by or subject to) any written or oral,
express or implied, commitment or arrangement with any labor union, and no labor
union has requested or, to the knowledge of the WFI Entities, has sought to
represent any of the employees, representatives or agents of any WFI Entity, or
has bargaining rights in respect of any of the employees, representatives or
agents of the WFI Entities, (d) there is no labor strike, dispute, slowdown or
stoppage actually pending, or, to the knowledge of the WFI Entities, threatened
against or involving any WFI Entity, and (e) other than as set forth on Schedule
2.17, to the knowledge of the Corporation, no salaried key employee has any
plans to terminate his or her employment with any WFI Entity.

     2.18. Litigation; Orders. Except as set forth on Schedule 2.18, there is no
civil, criminal or administrative action, suit, claim, notice, hearing, inquiry,
proceeding or investigation at law or in equity by or before any court,
arbitrator or similar panel, governmental instrumentality or other agency
Canadian or non-Canadian (including, without limitation, proceedings, inquiries
or investigations of the Canadian Federal Department of Industry ("Industry
Canada"), the Canadian Radio-television and Telecommunications Commission (the
"CRTC"), the U.S. Federal Communication Commission (the "FCC") or arising under
the Competition Act (Canada) (the "Competition Act")) now pending or, to the
knowledge of the Corporation, threatened in writing against any WFI Entity or
the assets or the business of any WFI Entity. No WFI Entity is subject to any
order, writ, injunction or decree of any court of any Canadian or non-Canadian
federal, provincial, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality which could reasonably be
expected to have a Material Adverse Effect.

     2.19. Compliance with Laws. (a) Except as provided in Schedule 2.19, each
WFI Entity (i) has complied in all material respects with all Canadian and
non-Canadian federal, provincial, state, local and foreign laws, rules,
ordinances, codes, consents, authorizations, registrations, regulations,
decrees, directives, judgments and orders materially applicable to it and its
business, and (ii) has all Canadian and non-Canadian federal, provincial, state,
local and foreign governmental licenses, permits, authorizations, consents,
waivers, franchises, certificates and approvals material to and necessary in the
conduct of its business as currently conducted (collectively, "Licenses"), such
Licenses are in full force and effect, and no violations have been recorded in
respect of any such Licenses and no proceeding is pending or, to the best
knowledge of the Corporation, threatened to revoke or limit any such License,
except violations or proceedings which, if determined adversely to the WFI
Entity holding such License, would not have a Material Adverse Effect. The
provisions of this Section 2.19 shall not apply to the matters covered by
Section 2.22 (Licenses, Permits and Rights of Way).

                                      -18-
<PAGE>

     (b) To the Corporation's knowledge, each WFI Entity is in compliance with
the U.S. Foreign Corrupt Practices Act of 1977, as amended, and no present or
former stockholder, officer, director, employee or agent of the Corporation or
any WFI Entity, as the case may be, has in order to assist the Corporation or
any WFI Entity in obtaining or retaining any Telecommunications License (as
defined in Section 2.21) or any business for or with, authorized the payment of
any money, or offered, given, or promised to pay or authorized the payment of
any money, or offered, given, promised to give, or authorized the giving of
anything of value to (i) any officer or employee or any government or any
department, agency, instrumentality thereof, or any person acting in an official
capacity for or on behalf of any such government or department, agency or
instrumentality, any foreign political party or any official thereof or any
candidate for foreign political office, or (ii) any person, while knowing that
all or a portion of such money or thing of value will be offered, given, or
promised, directly or indirectly, to any foreign official, to any foreign
political party or official thereof, or to any candidate for political office,
in each case, for purposes of the following:

     (A) (x) illegally or corruptly influencing any act or decision of any
foreign official, political party or official thereof, or candidate in such
person's official capacity, or (y) inducing such foreign official, political
party or official thereof, or candidate to do or omit to do any act in violation
of the lawful duty of such person; or

     (B) illegally or corruptly inducing such foreign official, political party
or official thereof, or candidate to use such person's influence with a foreign
government or instrumentality thereof to affect or influence any act or decision
of such government or instrumentality.

     2.20. Compliance with Telecommunications Laws. (a) No WFI Entity is in
violation of any judgment, decree, order, writ, law, statute, rule or regulation
rendered or enacted in Canada or any non-Canadian jurisdiction respecting
telecommunications and the regulation within Canada of "telecommunications
common carriers" (as defined in the Telecommunications Act) or in any
non-Canadian jurisdiction respecting telecommunications applicable to any of the
WFI Entities, or, to the knowledge of the Corporation, any published
interpretation or policy relating thereto applicable to any WFI Entity. Except
as set forth on Schedule 2.20(a), no notices, reports or other filings are
required to be made by any WFI Entity, either prior to or immediately after the
consummation of the transactions contemplated hereby, with, nor are any
consents, registrations, applications and Permits required to be obtained by any
WFI Entity from, any court or governmental agency or other regulatory body or
tribunal or similar entity pursuant to Canadian or non-Canadian
telecommunications and radio communication regulatory law in connection with the
consummation of the transactions contemplated hereby. The current development,
implementation, construction and operation of the Corporation's
telecommunications networks do not and, to the knowledge of the Corporation, the
proposed conduct of the foregoing, will not conflict with or result in a breach
or violation of any of the Communications statutes or existing regulations
thereunder except breaches or violations which may be remedied by the
Corporation at immaterial expense and which would not otherwise have a

                                      -19-
<PAGE>

Material Adverse Effect. For the purposes of this Agreement, "Communications
statutes" means the Telecommunications Act, the Canadian Radio-television and
Telecommunications Commission Act, or other statutes of Canada or any
non-Canadian jurisdiction specifically relating to the regulation of the
telecommunications industry within Canada or any non-Canadian jurisdiction
(including for this purpose the orders, rules, regulations, directives,
decisions, notices and policies promulgated pursuant to such statutes, and
applicable statutes or regulations, if any, of any province of Canada or State
of the U.S. specifically relating to the regulation of the Canadian or U.S.
telecommunications industry and the orders, rules, regulations, directives,
decisions, notices and policies promulgated thereunder).

     (b) Both prior to and immediately after the Closing, (i) Worldwide Fiber
(F.O.T.S.) Ltd. is and will be eligible to operate as a telecommunications
common carrier in Canada, as defined under and in accordance with the
Telecommunications Act and the Canadian Telecommunications Common Carrier
Ownership and Control Regulations (the "Ownership Regulations"); (ii) Worldwide
Fiber (F.O.T.S.) Ltd. does not and will not violate the prohibition contained in
subsection 16(4) of the Telecommunications Act against operating in Canada as a
telecommunications common carrier when ineligible to do so; (iii) the
Corporation has taken all reasonable steps such that control of Worldwide Fiber
(F.O.T.S.) Ltd. is not and will not be exercised by any person(s) that is (are)
not or will not be Canadian, in accordance with the meanings ascribed to the
term "control" under the Telecommunications Act and the term "Canadian" under
the Ownership Regulations.

     (c) Both prior to and immediately after the Closing, (i) not less than
eighty percent of the members of the board of directors of Worldwide Fiber
(F.O.T.S.) Ltd. are or will be individual Canadians, as defined under the
Ownership Regulations; (ii) Canadians, as defined under the Ownership
Regulations, beneficially own, and will beneficially own directly or indirectly,
in the aggregate and otherwise than by way of security only, not less than
eighty percent of the issued and outstanding voting shares, as defined under the
Ownership Regulations, of Worldwide Fiber (F.O.T.S.) Ltd.; (iii) Worldwide Fiber
Networks Ltd., in respect of its ownership and control over Worldwide Fiber
(F.O.T.S.) Ltd., is a carrier holding corporation, as defined under the
Ownership Regulations; (iv) Worldwide Fiber Networks Ltd. is and will be a
carrier holding corporation that is a qualified corporation, as defined under
the Ownership Regulations; and (v) the Corporation has taken all reasonable
steps such that Worldwide Fiber (F.O.T.S.) Ltd. is not and will not be
controlled in fact by non-Canadians.

     (d) With the exception of Worldwide Fiber (F.O.T.S.) Ltd., no other
subsidiary of the Corporation operates in Canada as a telecommunications common
carrier as that term is defined in the Telecommunications Act.

     (e) Except as disclosed in Schedule 2.20(e), no WFI Entity is currently,
nor will the conduct of its business as presently proposed to be conducted cause
it to be in the future, subject to the provisions of the Communications Act of
1934, as amended by the Telecommunications Act of 1996 (the "Communications
Act") or to any rules, regulations and policies of the FCC related hereto. All
WFI Entities are in compliance with all federal, state

                                      -20-
<PAGE>

and local telecommunications laws, rules, regulations and policies in the United
States to which they are subject, including the Communications Act and the
related rules, regulations and policies of the FCC except where failure to
comply would not have a Material Adverse Effect.

     2.21. Telecommunications Licenses. (a) Except as set forth on Schedule
2.20(a), the Corporation holds all licenses, permits, certificates, waivers,
consents, franchises, orders, approvals and authorizations issuable under the
Telecommunications Act or other similar Canadian or U.S. statutes which are
required for the development, implementation and operation of the Corporation's
business as it is currently being conducted (collectively, the
"Telecommunications Licenses"). The WFI Entities are in material compliance with
each Telecommunications License held by them. The Telecommunications Licenses
held by each WFI Entity contain no restrictions or conditions attaching to the
Telecommunications Licenses that are (or would be) materially burdensome to the
WFI Entities.

     (b) All of the WFI Entities have timely filed all renewal applications with
respect to all Telecommunications Licenses held by any of them and no protests
or competing applications have been filed that are either available to the
Corporation or of which the Corporation has knowledge with respect to such
renewal applications and nothing has come to the Corporation's attention that
would lead it to conclude that such renewal applications will not be granted by
the appropriate regulatory agency or body in the ordinary course and the WFI
Entities are authorized under the Communications statutes and the rules and
regulations promulgated thereunder to continue to provide the services which are
the subject of such renewal applications during the pendency thereof.

     (c) The business of the WFI Entities as it is presently being conducted and
proposed to be conducted in Canada is not regulated by any federal, state or
provincial utility or rate-regulating commission, other than the CRTC and
Industry Canada, in the areas in which any WFI Entity conducts or proposes to
conduct such business, and the WFI Entities are not, and based on existing
regulations will not be, required to obtain any Telecommunications License from
any such utility or rate-regulating commission, other than the CRTC and Industry
Canada, in any such state or province.

         2.22. Licenses, Permits and Rights-of-Way. (a) The WFI Entities
currently hold, have the right to or enjoy the use of all licenses, permits,
authorizations, consents, and franchises (the "Permits) as are required for the
construction, installation, maintenance and continued operation of the business
of the WFI Entities as it is presently conducted (including the Network and the
Hibernia Project). The WFI Entities have filed or intend to timely file for all
licenses, permits, authorizations, consents and franchises as are required to
operate the business as presently proposed to be conducted (including the
Network and the Hibernia Project), except where the failure to have such Permits
would not have a Material Adverse Effect. Each respective WFI Entity (or other
contractor acting on its behalf) maintains adequate and accurate records with
respect to

                                      -21-
<PAGE>

the timely renewal or application for renewal of any such Permits. The Permits
described in Part 1 of Schedule 2.22(a) are currently held by or on behalf of
the appropriate WFI Entity or its contractor(s) and are all the Permits
necessary to operate the Network as it presently is operated except where the
failure to have such Permits would not have a Material Adverse Effect. The
Permits identified in Schedule 2.20(a) and Part 1 and Part 2 of Schedule 2.22(a)
together with licenses and permits which will be required in connection with the
Corporation's business plan to sell telecommunications services are all of the
material Permits that must be obtained by or on behalf of any WFI Entity or its
contractor(s) to operate the business of the WFI Entities as presently proposed
to be conducted (including the Network and the Hibernia Project) but are not
presently required. To the knowledge of the Corporation, no other party to any
Permit has repudiated any Permit or any provision thereof, and the Corporation
has no knowledge of any termination, cancellation or threatened termination or
cancellation or limitation of, or any material modification or change in, any
Permit.

     (b) Except as set forth in Schedule 2.22(b), the WFI Entities currently
hold, have the right to use or enjoy the use of all access rights, rights of way
and leases (the "Access Rights") as are required for the construction,
installation, maintenance and operation of the business of the WFI Entities with
respect to the Network except where the failure to have such Access Rights would
not have a Material Adverse Effect. With respect to (i) the matters set forth on
Schedule 2.22(b) and (ii) the Hibernia Project, the WFI Entities have obtained
or intend to timely file for or obtain the right to use or to enjoy the use of
all Access Rights as may be required for the construction, installation,
maintenance and operation of the Network as presently proposed to be conducted.
To the knowledge of the Corporation, no other party to any Access Right has
repudiated any Access Right or any provision thereof, and the Corporation has no
knowledge of any termination, cancellation or threatened termination or
cancellation or limitation of, or any material modification or change in any
Access Right.

     2.23. Offering Exemption. Assuming the accuracy of the representations and
warranties contained in Section 3 hereof, the offer, sale and/or the issuance
and delivery of the Transaction Securities are each exempt from the prospectus
and registration requirements under applicable Canadian and U.S. securities
laws.

     2.24. Related Transactions. (a) Except as set forth in the Offering
Memorandum or Schedule 2.24(a), there have been no transactions, agreements,
arrangements or understandings between the Corporation or any of its
Subsidiaries that would be required to be disclosed under Item 404 of Regulation
S-K under the 1933 Act, if the Offering Memorandum were a prospectus included in
a registration statement on Form S-1 filed with the Commission. For the
avoidance of doubt, Schedule 2.24(a) also lists and describes any assets,
licenses, etc. the use of which are shared between any WFI Entity on the one
hand, and Ledcor or its Subsidiaries (other than the WFI Entities), on the other
hand.

                                      -22-
<PAGE>

     (b) Each ongoing intercorporation transaction set forth on Schedule 2.24(a)
is on terms that are no less favorable to the WFI Entities than those that would
have been obtained in a comparable transaction by the WFI Entities with a person
that is not an affiliate.

     2.25. Boycott. Neither the Corporation nor any WFI Entity has at any time
participated in, and is not currently participating in, an anti-Israel boycott
within the scope of Chapter 7 of Part 2 of Division 4 of Title 2 of the
California Government Code.

     2.26. Taxes.

     (a) Except as set forth on Schedule 2.26, each of the WFI Entities has duly
and timely filed its Tax Returns with the appropriate Governmental Authority and
has duly, completely and correctly reported all income and all other amounts and
information required to be reported thereon except where any such failure would
not have a Material Adverse Effect. Except as set forth in Schedule 2.26,
complete copies of Tax Returns of each of the WFI Entities that have been filed
through the date hereof have been made available to the Investors prior to the
date hereof. Prior to the date hereof, copies of all revenue agents' reports and
other written assertions of deficiencies or other liabilities for Taxes of any
of the WFI Entities with respect to past periods for which the limitations
period has not run have been made available to the Investors.

     (b) Except as disclosed in Schedule 2.26, each of the WFI Entities has duly
and timely paid all Taxes except where any such failure would not have a
Material Adverse Effect, including all installments on account of Taxes for the
year, that are due and payable by it that relate to periods ending on or prior
to the Closing Date, whether or not assessed by the appropriate Governmental
Authority. The WFI Entities have established reserves that are reflected on the
Balance Sheet that are at least equal to the amount of all Taxes payable by the
WFI Entities as disclosed in Schedule 2.26 and all Taxes that are not yet due
and payable and related to periods ending on or prior to the Closing Date.

     (c) Except as set forth on Schedule 2.26, none of the WFI Entities has
requested, or entered into any agreement or other arrangement or executed any
waiver providing for, any extension of time within which (i) to file any Tax
Return covering any Taxes for which such WFI Entity is or may be liable; (ii) to
file any elections, designations or similar filings relating to Taxes for which
such WFI Entity is or may be liable; (iii) such WFI Entity is required to pay or
remit any Taxes or amounts on account of Taxes; or (iv) any Governmental
Authority may assess or collect Taxes for which such WFI Entity is or may be
liable.

     (d) Except as set forth on Schedule 2.26, (i) there are no actions, suits,
proceedings, investigations, audits or claims now pending or, to the knowledge
of the WFI Entities, threatened, against any one of the WFI Entities in respect
of any Taxes, (ii) there are no matters under discussion, audit or appeal with
any Governmental Authority relating to Taxes, (iii) there are no Tax rulings,
requests for rulings or closing agreements relating to any of the

                                      -23-
<PAGE>

WFI Entities which could affect their liability for Taxes for any period after
the Closing, (iv) none of the WFI Entities is a party to, nor is it bound by,
any Tax allocation or Tax sharing agreement or arrangement and have no current
contractual obligation to indemnify any other person or entity with respect to
Taxes, (v) to the knowledge of the WFI Entities no taxing authority in a
jurisdiction where any of the WFI Entities does not file Returns has made a
claim, assertion or threat that any of the WFI Entities is or may be subject to
taxation by such jurisdiction, (vi) none of the WFI Entities has agreed in
writing to, nor is it required to include in income, any adjustment by reason of
a change in accounting method or otherwise, nor do any of the WFI Entities have
any knowledge that any taxing authority has proposed, or is considering, any
such change in accounting method, (vii) none of the WFI Entities is a passive
foreign investment corporation ("PFIC") within the meaning of Section 1297 of
the Code, (viii) none of the WFI Entities is a controlled foreign corporation
("CFC") within the meaning of Section 957 of the Code, and (ix) none of the WFI
Entities is a (A) personal holding corporation ("PHC") within the meaning of
Section 542 of the Code or (B) foreign personal holding corporation ("FPHC")
within the meaning of Section 552 of the Code. None of the WFI Entities will
become PFIC, CFC, PHC or FPHC as a result of the transactions contemplated by
the Agreement.

     (e) The Corporation agrees to make reasonably available to the Investors
books and records and personnel of the Corporation, and to provide information
to the Investors, as may be reasonably requested by the Investors with respect
to matters relating to its status as a PFIC, CFC or FPHC. The Corporation will
provide each Investor with all information reasonably available to the
Corporation or any of its subsidiaries as is reasonably requested by such
Investor to enable the Investor to determine whether the Corporation or any of
its subsidiaries are, have been, or are likely to become a PFIC, a CFC or a FPHC
during the period (or any portion thereof) in which the Investors own Series A
Non-Voting Preferred Shares or Common Shares. The Corporation will provide, or
make available to, each Investor information reasonably available to the
Corporation or any of its subsidiaries as is reasonably requested by such
Investor to (i) prepare accurately all Returns and comply with any reporting
requirement imposed as a result of its investment in the Corporation, including
as a result of the Investor determining, in its reasonable discretion, that the
Corporation or any of its subsidiaries is a PFIC, FPHC or CFC or (ii) make any
election (including, without limitation, a Qualified Electing Fund election
under Section 1295 of the Code), with respect to the Corporation or any of its
subsidiaries, and comply with any reporting or other requirements incident to
such election. In the event that, on the basis of such information, any Investor
determines that the Corporation is a PFIC for a particular year, then for such
year and for each year thereafter the Corporation shall also provide such
Investor a completed "PFIC Annual Information Statement" as required by U.S.
Treasury Regulation section 1.1295.IT(g). As further required by such Treasury
Regulation, the Corporation shall permit each Investor or its representative to
inspect and copy the Corporation's permanent books of account, records, and such
other documents as may be maintained by the Corporation that are necessary to
establish that the financial information included on such PFIC Annual
Information Statement is computed in accordance with U.S. income tax principles.
In addition, the Corporation shall promptly no-

                                      -24-
<PAGE>

tify the Investors of any written assertion by the U.S. Internal Revenue Service
that the Corporation or any of its subsidiaries is or is likely to be a PFIC,
FPHC or CFC.

     (f) The Canadian federal and provincial income and capital tax liabilities
of the WFI Entities have not been assessed by the relevant taxing authorities.

     (g) For purposes of the Income Tax Act (Canada) or any applicable
provincial or municipal taxing statute, no Person or group of Persons has ever
acquired or had the right to acquire control of any of the WFI Entities. (h)
There are no circumstances existing which could result in the application of any
of Sections 78 or 80 to 80.4 of the Income Tax Act (Canada) or any equivalent
provision under provincial tax legislation in relation to the WFI Entities.

     (i) None of the WFI Entities has acquired property from a non-arm's length
person, within the meaning of the Income Tax Act (Canada), for consideration the
value of which is less than the fair market value of the property acquired in
circumstances which could subject it to a liability under Section 160 of the
Income Tax Act (Canada).

     (j) Schedule 2.26 discloses each of the WFI Entities which are duly
registered under subdivision (d) of Division V of Part IX of the Excise Tax Act
(Canada) with respect to the goods and services tax and harmonized sales tax and
under Division I of Chapter VIII of the Title I of the Quebec Sales Tax Act with
respect to the Quebec sales tax. The Corporation's registration number under the
Excise Tax Act (Canada) is 983197424 RT0001.

     (k) Each of the WFI Entities has duly and timely withheld from any
amount paid or credited by it to or for the account or benefit of any Person,
including, without limitation, any of its employees, officers and directors and
any non-resident Person, the amount of all Taxes and other deductions required
by any applicable law, rule or regulation to be withheld from any such amount
and has duly and timely remitted the same to the appropriate Governmental
Authority.

     (l) None of the WFI Entities has filed any elections or designations which
will be applicable for any period ending after the Closing Date.

     (m) For all transactions between any WFI Entity and any non-resident person
with whom the WFI Entity was not dealing at arm's length during a taxation year
commencing after 1998 and ending on or before the Closing Date, the WFI Entity
has made or obtained records or documents that meet the requirements of
paragraphs 247(4)(a) to (c) of the Income Tax Act (Canada).

     (n) For purposes of this Agreement:

     "Governmental Authority" means any government, regulatory authority,
governmental department, agency, commission, board, tribunal, crown corporation,
or court or

                                      -25-
<PAGE>

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;

     "Person" means 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, Governmental Authority, and a natural person in such person's
capacity as trustee, executor, administrator or other legal representative;

     "Taxes" includes all taxes, duties, fees, assessments, imposts, levies and
other charges of any kind whatsoever imposed by any Governmental Authority,
together with all interest, penalties, fines, additions to tax or other
additional amounts imposed in respect thereof, including those levied on, or
measured by, or referred to as income, gross receipts, profits, capital,
transfer, land transfer, sales, goods and services, use value-added, excise,
stamp, withholding, business, franchising, property, payroll, employment,
health, social services, education and social security taxes, all surtaxes, all
customs duties and import and export taxes, all license, franchise and
registration fees and all employment insurance, health insurance and Canada,
Quebec and other governmental pension plan premiums or contributions; and

     "Tax Return" includes all returns, reports, declarations, elections,
notices, filings, information returns and statements filed or required to be
filed with any Governmental Authority in respect of Taxes.

     2.27. Environmental Protection. The WFI Entities are conducting, and have
conducted their business in compliance with all applicable Environmental Laws,
except for such noncompliance which would not be reasonably expected to have a
Material Adverse Effect. No WFI Entity has caused, arranged or allowed, or
contracted with any party for, the transportation, treatment, storage or
disposal of any Hazardous Substance in connection with the operation of its
business or otherwise (collectively, an "Arrangement"), except for such
Arrangements which would not be reasonably expected to have a Material Adverse
Effect. To the knowledge of the Corporation, no Hazardous Substance has been
Released into the environment on or from the Real Properties or, to the
knowledge of the Corporation, any other property now or formerly owned, leased,
or controlled by the WFI Entities which Release is required or may be required
under applicable Environmental Laws to be abated or remediated by the
Corporation, except for such Releases which would not be reasonably expected to
have a Material Adverse Effect. Except as would not reasonably be expected to
have a Material Adverse Effect, there are no past or present Releases,
conditions, events, circumstances, facts, activities, practices, incidents,
actions, omissions, or plans that would reasonably be expected to form the basis
of any claim, action, suit, proceeding, order, administrative sanction, or
inquiry against or involving any WFI Entity allegedly or actually based on or
related to any violation of any Environmental Law or that is reasonably likely
to require such WFI Entity to incur any Losses in connection therewith.

                                      -26-
<PAGE>

For purposes of this Agreement, the term "Environmental Laws" shall mean all
laws, rules, regulations, orders, ordinances, codes and judgments of any
Governmental Authority having jurisdiction relating in full or in part to the
protection of the environment, and employee and public health and safety, and
includes those relating to the storage, generation, use, handling, manufacture,
processing, labeling, transportation, treatment and Release of Hazardous
Substances in effect and as amended as of the date of this Agreement. For
purposes of this Agreement, the term "Hazardous Substances" shall mean any
pollutant, contaminant, waste of any nature, hazardous substance, hazardous
material or toxic substance as defined, judicially interpreted or identified in
any Environmental Law including any asbestos, asbestos containing materials,
petroleum and/or other hydrocarbons or petroleum by-products. For the purposes
of this Agreement, the term "Release" shall have the meaning prescribed in any
Environmental Law and includes any release, spill, leak, pumping, pouring,
emission, emptying, discharge, injection, escape, leaching, disposal, dumping,
deposit, spraying, burial, abandonment, incineration, seepage, or placement.

     2.28. Consents. No permit, authorization, consent or approval of or by, or
any notification of or filing with, any Person (governmental or private) is
required in connection with the execution, delivery and performance by the
Corporation of the Documents, the consummation by the Corporation of the
transactions contemplated thereby, or the issuance, sale or delivery of the
Transaction Securities (other than such notifications or filings required under
applicable provincial securities laws, if any, which shall be made by the
Corporation on a timely basis).

     2.29. Insurance. All of the material assets of each WFI Entity that is of
insurable character (including all material assets of such WFI Entity that are
of insurable character) are covered by insurance with reputable insurers against
risks of liability, casualty and fire and other losses and liabilities
customarily obtained to cover comparable businesses and assets in amounts, scope
and coverage which are consistent with prudent industry practice. Schedule 2.29
sets forth a list of all insurance coverage carried by the WFI Entities, the
carrier and the terms and amount of coverage. No WFI Entity is in default with
respect to its obligations under any material insurance policy maintained by it.
All such policies are in full force and effect and all premiums due with respect
thereto have been paid. No WFI Entity has failed to give any notice or present
any material claim under any such insurance policy in due and timely fashion or
as required by any of such insurance policies or has not otherwise, through any
act, omission or non-disclosure, jeopardized or impaired full recovery of any
material claim under such policies, and there are no material claims by any WFI
Entity under any of such policies to which any insurance corporation is denying
liability or defending under a reservation of rights or similar clause. No WFI
Entity has received written notice of any pending or threatened termination of
any of such policies or any premium increases for the current policy period with
respect to any of such policies and the consummation of the transactions
contemplated by this Agreement will not result in any such termination or
premium increase.

                                      -27-
<PAGE>

     2.30. Brokers. Neither the Corporation nor any of its officers, directors,
employees or shareholders has employed any broker, finder or placement agent in
connection with the transactions contemplated by this Agreement.

     2.31. Suppliers and Customers. No supplier or proposed supplier of
materials or services (including, but not limited to, telecommunications
equipment, fiber, conduit and related electronics used to build the network) to
any WFI Entity in an amount in excess of US$10,000,000 per year has during the
last twelve months on such supplier's initiative decreased materially or, to the
best knowledge of the Corporation, threatened to decrease or limit materially
its provision of services or supplies to such WFI Entity, nor expressed material
dissatisfaction with the business relationship between such WFI Entity and the
supplier.

     2.32. Real Property. Schedule 2.32 lists all real property owned or leased
by each WFI Entity. Each WFI Entity has unencumbered title to its owned real
properties (collectively, the "Owned Real Properties") and unencumbered
leasehold title to its leased real properties (the "Leased Real Properties,"
together with the Owned Real Properties, the "Real Properties"), in each case,
free and clear of all imperfections of title and all Encumbrances, except for
(a) those consisting of zoning or planning restrictions, easements, permits and
other restrictions or limitations on the use of such property or irregularities
in title thereto which, individually and in the aggregate, do not materially
impair the use of such property, (b) warehousemen's, mechanics', carriers',
landlords', repairmen's or other similar Encumbrances arising in the ordinary
course of business and securing obligations not yet due and payable, (c) other
Encumbrances which individually and in the aggregate do not materially impair
its use of such property or its ability to obtain financing by using such assets
as collateral, and (d) Encumbrances listed on Schedule 2.32. To the knowledge of
the Corporation, there are no intended public improvements which will result in
any material charge being levied against, or in the creation of any Encumbrances
upon, the Real Properties or any portion thereof. There are no options, rights
of first refusal, rights of first offer or other similar rights with respect to
any of the Real Properties that is material to the business of the WFI Entities
as currently conducted or proposed to be conducted. With respect to each lease
of Real Property to which any WFI Entity is a party, so long as the applicable
WFI Entity performs all of its obligations under such lease for Real Property
within applicable notice and grace periods, (a) the rights of such WFI Entity
under such lease shall not be terminated and (b) such WFI Entity's possession of
such Real Property and the use and enjoyment thereof shall not be disturbed by
any landlord, overlandlord, mortgagee or other superior party. No WFI Entity is
obligated to purchase any Leased Real Property and no Leased Real Property is
required to be accounted for under GAAP as a capitalized lease. No WFI Entity is
a real property holding company.

     2.33. Investment Banking Services. The Corporation is not a party to any
Contract which grants rights to any third party with respect to the performance
of investment banking services for it, including, without

                                      -28-
<PAGE>

limitation, with respect to its sale or a public offering, including an initial
public offering, of its securities.

     2.34. Year 2000 Compliant. The disclosure contained in the Offering
Memorandum under the captions "Management's Discussion and Analysis of Financial
Condition and Results of Operations, -- Impact of Year 2000, -- Risks of Year
2000 Issues, -- Description of Our Year 2000 Program, -- State of Readiness, and
-- Contingency Plans and Costs to Address Year 2000 Issues" is accurate and
complete as at the date thereof and there has been no adverse change in the
facts disclosed therein since July 23, 1999.

     2.35. Previous Issuances Exempt. All shares and other securities issued by
the Corporation prior to the date hereof have been issued in transactions exempt
from the prospectus requirements or registration, as the case may be, under
applicable Canadian securities laws and the 1933 Act, and all applicable
provincial and state securities or "blue sky" laws or have been distributed or
registered, as the case may be, in compliance with all such laws (collectively,
"Securities Laws"). The Corporation has not violated the Securities Laws in
connection with the issuance of any shares or other securities prior to the date
hereof. The Corporation has not offered any of its shares, or any other
securities, for sale to, or solicited any offers to buy any of the foregoing
from the Corporation, or otherwise approached or negotiated with any other
person in respect thereof, in such a manner as to require distribution by
prospectus or registration under applicable Securities Laws.

     2.36. Investment Company Act. Neither the Corporation nor any WFI Entity is
a "holding company", or a "subsidiary company" of a "holding company" or an
"affiliate" of a "holding company", as such terms are defined in the United
States Public Utility Holding Company Act of 1935, as amended; nor is the
Corporation or any WFI Entity an "investment company", or an "affiliated person"
or a "principal underwriter" of an "investment company", as such terms are
defined in the United States Investment Company Act of 1940, as amended. Neither
the Corporation nor any WFI Entity is now, nor has it been within the past five
years, a "United States real property holding corporation" as defined in Section
897 of the Code.

     2.37. Disclosure. Neither this Agreement nor any certificate, or written
statement made to the Investors by or on behalf of the Corporation delivered at
the Closing, together with the Offering Memorandum, taken as a whole, contains
any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements contained herein and therein not
misleading.

     SECTION 3. Representations, Warranties and Acknowledgments of the
Investors. Each of the Investors represents, warrants and acknowledges to the
Corporation as of the date hereof as follows:

                                      -29-
<PAGE>

     (a) Such Investor is acquiring Series A Non-Voting Preferred Shares as
principal with an aggregate acquisition cost to the Investor of not less than
the amount set forth opposite such Investor's name on Schedule 1.1 and:

     (i) if a corporation, it was not incorporated solely, nor is it used
primarily, to permit the purchase without a prospectus of the Series A
Non-Voting Preferred Shares, or, if the corporation was incorporated solely for
such purpose, each shareholder of the corporation has contributed at least
C$97,000 to the corporation for the purpose of investment by the corporation in
the Series A Non-Voting Preferred Shares; or

     (ii) if not a corporation, is a partnership, trust, fund, syndicate,
association or other form of unincorporated organization, such partnership,
trust, fund, syndicate, association or other form of unincorporated organization
was not formed or established solely, nor is used primarily, to permit the
purchase of the Series A Non-Voting Preferred Shares without a prospectus, or if
formed or established or used primarily for such purpose, each member of such
partnership, trust, fund, syndicate, association or other form of unincorporated
organization, would have an aggregate acquisition cost of not less than C$97,000
for the Series A Non-Voting Preferred Shares if the participant were acquiring
its proportionate interest in the Series A Non-Voting Preferred Shares; and

     (iii) is purchasing the Series A Non-Voting Preferred Shares for investment
only and not with a view to resale or distribution in violation of applicable
securities laws.

     (b) Such Investor, if a "U.S. Person" (as defined in Regulation S under the
1933 Act), is an "Accredited Investor" (as defined in Rule 501(a)(1), (2), (3)
(7) or (8) under the 1933 Act), and such Investor makes the additional
representations and warranties contained in Schedule 3 of this Agreement.

     (c) Such Investor acknowledges that no offering memorandum, prospectus
or registration statement has been prepared or filed by the Corporation with any
securities commission or similar authority in any jurisdiction in connection
with the Purchase and the issue and sale of Series A Non-Voting Preferred Shares
to such Investor 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) Such Investor has not received or been provided with a prospectus,
offering memorandum or other similar document, nor has it requested, nor does it
have any need to receive, a prospectus, offering memorandum (other than the
Offering Memorandum (as defined in Section 2.10(d)) or any other similar
document describing the business and affairs of the Corporation.

     (e) To such Investor's knowledge, the Series A Non-Voting Preferred Shares
were not advertised in printed media of general and regular paid circulation,
radio or

                                      -30-
<PAGE>

television and such Investor has not purchased the Series A Non-Voting Preferred
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) Such Investor 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) Such Investor understands that the Series A Non-Voting Preferred 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 such Investor understands and agrees that the Series A
Non-Voting Preferred 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 Shareholders Agreement and either (x) registered under the 1933 Act
and any applicable state securities laws or (y) an exemption from such
registration requirements is available and that certificates representing the
Series A Non-Voting Preferred Shares will bear a legend to such effect.

     (h) Such Investor 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 Series A
Non-Voting Preferred Shares in any province or territory of Canada and that the
Series A Non-Voting Preferred Shares may not be offered or sold by such Investor
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) Such Investor has not employed any broker or finder in connection with
the transactions contemplated by this Agreement.

     (j) Such Investor is duly organized and validly existing under the laws of
the jurisdiction of its organization and has all partnership, corporate or
company power, as applicable, and authority to enter into and perform the
Documents. Each of the Documents to which such Investor is a party has been duly
authorized by all necessary action on the part of such Investor. Each of the
Documents to which such Investor is a party constitutes a valid and binding
agreement of such Investor enforceable against such Investor 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.

                                      -31-
<PAGE>

     (k) The execution, delivery and performance by such Investor of each of the
Documents to which such Investor is a party and the consummation by such
Investor 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 which such Investor is a party that would materially
adversely affect the Investor's ability to consummate the transactions
contemplated by this Agreement or perform its obligations under the Shareholders
Agreement; or (iii) violate its organizational documents (if any).

     (l) No permit, authorization, consent or approval of or by, or any
notification of or filing with, any person (governmental or private) is required
in connection with the execution, delivery and performance by such Investor of
the Documents to which it is a party or any documentation relating thereto, or
the consummation by such Investor of the transactions contemplated thereby
(other than such notifications or filings required under applicable Canadian
Securities Laws, if any, which shall be made on a timely basis).

     (m) Each Investor acknowledges and agrees that the foregoing
representations, warranties and covenants set out herein are made by such
Investor with the intent that they be relied upon in determining its suitability
as a purchaser of Series A Non-Voting Preferred Shares. Each Investor further
agrees that by accepting the Series A Non-Voting Preferred Shares, such Investor
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 such Investor at the Closing Date and shall continue in
full force and effect notwithstanding any subsequent disposition by it of the
Series A Non-Voting Preferred Shares. Each Investor undertakes to notify the
Corporation in writing of any change in any representation, warranty or other
information relating to such Investor set forth herein which takes place prior
to the Closing Date.

     SECTION 4 Covenants Prior to Closing.

     4.1. Cooperation by Parties; Satisfaction of Closing Conditions. From the
date hereof and prior to the Closing, (i) 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 in order to enable the parties
hereto to effect the transactions contemplated hereby, and (ii) the Corporation
shall use its commercially reasonable efforts to cause (but not waive) any
Closing Condition in Section 6.2 to be satisfied.

                                      -32-
<PAGE>

     4.2. Conduct of Business. (a) Except as may be otherwise contemplated by
the Documents or as described in Schedule 4.2, or except as the Investors may
otherwise consent to in writing (which consent shall not be unreasonably
withheld or delayed), from the date hereof and prior to the Closing, the
Corporation shall not, and shall cause each WFI Subsidiary not to, do any thing
or take any action or omit to do anything or to take any action which (i) would
cause any representation or warranty of the Corporation in this Agreement to be
untrue as of the Closing Date or (ii) would be a Major Transaction under the
Shareholders Agreement if the Shareholders Agreement were in effect.

     (b) From the date hereof to the Closing Date, the Corporation shall cause
Worldwide Telecom (Bermuda) Limited (the "Project Subsidiary") to engage solely
in activities related or incidental to the Hibernia Project. Unless the Hibernia
Supply Contract (as defined in Section 2.10(e)) otherwise requires, the
Corporation shall cause the Project Subsidiary to diligently enforce all of its
rights under the Hibernia Supply Contract.

     4.3. Required Notices. At all times prior to the Closing Date, the
Corporation shall promptly give written notice to the Investors of (a) any facts
or circumstances or the occurrence of any event or the failure of any event to
occur, which has or is reasonably likely to have, (i) a Material Adverse Effect
on the Corporation and/or any WFI Entity or (ii) a Material Adverse Effect on
the ability of the Corporation to consummate the transactions contemplated
hereby or to satisfy its obligations hereunder, (b) any complaints,
investigations or hearings (or communications indicating that the same may be
contemplated) of any authority with respect to the Corporation and/or any WFI
Entity or the transactions contemplated hereby, (c) the institution or the
threat of institution of any litigation or similar action with respect to the
Corporation and/or any WFI Entity or the consummation of the transactions
contemplated hereby and (d) the occurrence of any event, or the discovery of any
facts or circumstances which will or is reasonably likely to result in the
failure (x) of any representation or warranty set forth herein to continue being
true or (y) to satisfy any condition set forth in Section 6. The Corporation
shall keep the Investors apprised of material changes with respect to such
events promptly upon the occurrence of such events.

     4.4. No Shop. For the period between the date hereof and the earlier of the
Closing Date and October 4, 1999, the Corporation will not, and will not
authorize any of its officers or directors or any other person on its behalf,
to, solicit, encourage, negotiate or accept any offer from any party concerning
(i) the sale or disposition of all or any portion of the Corporation's business,
assets (other than in the ordinary course of business), subsidiaries or share
capital by merger, amalgamation, share issuance, sale or any other means, or
(ii) any other agreement or arrangement that would be inconsistent with the
consummation of the transactions contemplated hereby (clauses (i) and (ii)
together, each a "Prohibited Transaction"), nor will they participate in any
discussions or negotiations regarding, or furnish any information with respect
to, or facilitate in any other manner, any Prohibited Transaction. On or before
the date hereof, the Corporation will immediately terminate any existing
discussion with a third party regarding a possible Prohibited Transaction. The

                                      -33-
<PAGE>

Corporation will promptly notify the Investors in writing of any inquiries or
proposals from any third party regarding a possible Prohibited Transaction.

     SECTION 5 Other Covenants.

     5.1. Use of Proceeds. The Corporation shall use the proceeds from the sale
of Series A Non-Voting Preferred Shares hereunder as set forth on Schedule 5.1.

     5.2. Shareholders Agreement. The Corporation shall use its best efforts to
cause each shareholder of the Corporation holding Common Shares or Common Share
Equivalents and listed on Schedule I to the shareholders agreement in the form
annexed hereto as Schedule 5.2 (the "Shareholders Agreement") to execute and
deliver the Shareholders Agreement on the Closing Date.

     5.3. HSR Filing. The Corporation shall file its notification of the
transactions contemplated by this Agreement under the United States
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR"),
promptly upon request by any of the Investors and shall pay all costs and
expenses, including filing fees of the Investors, in connection therewith.

     5.4. Tax Indemnity. (a) The Corporation shall indemnify and hold each
Investor, or the partners of the Investor where the Investor is a partnership,
(each referred to in this Section 5.4(a) as an "Investor") harmless from and
against any Canadian federal or provincial withholding tax liability (including
any such withholding tax liability on any payment made under this Section 5.4)
arising from or as a result of the holding, receipt of distributions on,
conversion, sale, redemption or other disposition of, the Preferred Shares or
the Common Shares (other than the receipt of any distributions of cash dividends
on the Common Shares), provided that the maximum withholding tax liability in
respect of which the Corporation shall indemnify and hold each Investor harmless
shall not exceed the amount of withholding tax payable under paragraph 2(b) of
Article X of the Canada-US Tax Convention (the "Convention") if the Investor
were a resident of the United States for purposes of the Convention. In the case
of a distribution, redemption or any similar payment by the Corporation with
respect to any Preferred Shares or Common Shares (other than a distribution of
cash dividends on Common Shares), if any Canadian federal or provincial
withholding tax is imposed on such distribution, redemption or other payment,
the indemnity provided for in the preceding sentence shall be satisfied by the
payment by the Corporation, at the same time as the making of such distribution,
redemption or other payment, of additional amounts as necessary so that the net
amount received by each Investor is the same as it would have received had no
such withholding tax been imposed. In any other case, the indemnity shall be
satisfied by payment in cash no later than three business days following demand
therefor (which demand shall be accompanied by a statement setting forth the
basis for indemnification). The Corporation shall not be obligated to indemnify
and hold an Investor harmless pursuant to this Section 5.4 in respect of (i) any
deemed dividend arising by virtue of

                                      -34-
<PAGE>

the application of subsection 212.1(1) of the Income Tax Act (Canada), (ii) any
deemed dividend arising solely by virtue of the application of 84(3) of the
Income Tax Act (Canada) in respect of a sale to or a redemption by the
Corporation of Common Shares pursuant to an offer made by the Corporation to
purchase through the facilities of The Toronto Stock Exchange in a particular
twelve-month period not more than 5% of a particular class of Common Shares
issued and outstanding at the commencement of such twelve-month period, which
offer is completed in compliance with applicable Canadian Securities Laws and
the rules of The Toronto Stock Exchange, (iii) any income tax liability arising
from a capital gain; or (iv) any tax arising if any Investor holds or is deemed
to hold the Preferred Shares or Common Shares in carrying on a business in
Canada. The Corporation shall indemnify and hold each Investor harmless from and
against any income tax liability imposed by the jurisdiction in which such
Investor is organized or otherwise resident, which income tax liability is
imposed on or in respect of any payment made under this Section 5.4.

     (b) In the event that any Investor shall be entitled to receive a refund of
tax or a credit against or relief or remission for, or repayment of, any tax
paid or payable by it (collectively, a "Tax Credit") in respect of or calculated
with reference to the withholding tax liability giving rise to the requirement
of the Corporation to make an indemnity payment under this Section 5.4, such
Investor shall use reasonable efforts to obtain the Tax Credit, and upon receipt
of such Tax Credit, to the extent that it can do so without prejudice to the
retention of the amount of such Tax Credit, pay or cause to be paid to the
Company such amount as such Investor shall have concluded, acting reasonably, to
be the after-tax value to it of the Tax Credit which is attributable to the
relevant withholding tax liability. Nothing herein contained shall interfere
with the right of each Investor to arrange its tax affairs in whatever manner it
thinks fit or require any Investor to disclose to the Company any information
regarding its tax affairs or tax calculations. Such payments shall be made
promptly upon the relevant Investor certifying that the amount of such credit,
relief, remission or repayment has been received by it and each Investor
undertake so to certify or cause to be certified promptly upon such receipt.
Notwithstanding anything to the contrary in this Agreement, the term "Investor"
as used in this Section 5.4(b) shall refer only to the direct holder of the
shares or other property in respect of which the indemnity payment was made and
not to any holder of an interest in such direct holder or any other Person.

     (c) Notwithstanding anything to the contrary in Section 5.4(a), the
Corporation shall indemnify and hold each Investor harmless from and against all
loss incurred or suffered, directly or indirectly, by an Investor in respect of
or otherwise attributable to any additional liability for Taxes arising to the
Corporation or to an Investor as a result of the reorganization of capital
undertaken by the Corporation prior to or at Closing (the "Reorganization"). For
greater certainty, the Reorganization includes the following transactions
contemplated by the Corporation: the issuance of Series C Redeemable Preferred
Shares by the Corporation to Worldwide Fiber Holdings Ltd. ("WFH") as a stock
dividend, the disposition by WFH of all of its common shares to the Corporation
for additional Series C Redeemable Preferred Shares and for Class B Subordinate
Voting Shares, the joint election to be made by the Corporation and WFH pursuant
to subsection 85(1) of the Income Tax Act

                                      -35-
<PAGE>

(Canada) in respect of such disposition, and the redemption by the Corporation
of the Series C Redeemable Preferred Shares held by WFH.

     5.5. Roll-Up Transactions. The Corporation agrees that each of the Minority
Roll-Up Transactions (as defined in Section 1.4(b)) shall be consummated in
consideration solely for the issuance of Common Shares (and not cash or any
other assets or obligations of the Corporation or any of its Subsidiaries or
affiliates). The Corporation also agrees that the Ledcor Roll-Up Agreement (as
defined in Section 1.4(b)) shall be consummated in consideration solely for the
issuance of 4,500,000 Common Shares (and not cash or any other assets or
obligations of the Corporation or any of its Subsidiaries or affiliates) and in
accordance with the terms of the Ledcor Roll-Up Agreement in effect on the date
hereof.

     SECTION 6 Conditions to the Purchase.

     6.1. 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 the Corporation or all the Investors, to the extent permitted by applicable
law:

     (a) No federal, state or provincial governmental or regulatory body or
court of competent jurisdiction 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.

     (b) Each governmental or third party consent, approval or filing required
to be obtained or made and any waiting period required to have expired in order
to consummate the 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.

     6.2. Conditions to Obligations of the Investors. The obligations of each
Investor to consummate the Purchase shall be subject to the satisfaction (or
waiver, which shall not be effective against any Investor who does not consent
in writing thereto), on or prior to the Closing Date, of the following
conditions:

     (a) Each representation and warranty made by the Corporation herein shall
be true and correct, in all material respects (except for such representations
and warranties that are qualified by their terms by reference to Material
Adverse Effect or materiality, which representations and warranties as so
qualified shall be true in all respects), on and as of the Clos-

                                      -36-
<PAGE>

ing 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) The Corporation shall have complied in all material respects with all
its agreements and covenants contained herein or the Shareholders Agreement
required to be performed at or prior to the Closing to the extent such
agreements and covenants relate to the Closing.

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

     (d) The Corporation shall have delivered to the Investors a certificate of
the Corporate Secretary of the Corporation, in form and substance satisfactory
to the Investors, certifying (i) a copy of the Articles of Continuance of the
Corporation and all amendments thereto, certified by the Director under the
Canada Business Corporations Act, (ii) the By-Laws of the Corporation, (iii) a
Certificate of Status for the Corporation issued by the Director under the
Canada Business Corporations Act and similar certificates for other WFI Entities
issued by the relevant Governmental Authority, (iv) resolutions of the board of
directors of the Corporation (the "Board of Directors") authorizing the
execution, delivery and performance by the Corporation of this Agreement, the
Shareholders Agreement, the Registration Rights Agreements, the Articles of
Incorporation, any other agreement entered into or instrument delivered by the
Corporation in connection herewith, and any letters entered into simultaneously
with this Agreement (collectively, the "Documents") and the transactions
contemplated thereby, (v) copies of each governmental or third party consent,
approval or filing required to be obtained or made in order to consummate the
transactions contemplated by this Agreement at the Closing, and (vi) incumbency
matters.

     (e) The Shareholders Agreement shall be executed and delivered by the
Corporation and each of the shareholders listed on Schedule I thereto.

     (f) A registration rights agreement (the "Registration Rights Agreement")
among the Corporation and the Investors in the form annexed hereto as Schedule
6.2(f) shall be duly executed and delivered by the Corporation.

     (g) The Articles of Amendment shall be in the form annexed hereto as
Schedule A.

     (h) No Material Adverse Effect shall have occurred in respect of the
Corporation or any of the other WFI Entities, and no event or change shall have
occurred which,

                                      -37-
<PAGE>

individually or in the aggregate, is reasonably likely to have a Material
Adverse Effect on the Corporation or any of the other WFI Entities.

     (i) The Investors shall receive from each of McLennan Ross; Farris,
Vaughan, Wills & Murphy; and Cahill Gordon & Reindel, counsel for the
Corporation, an opinion addressed to the Investors, dated as of the Closing, in
the forms annexed hereto as Schedule 6.2(i).

     (j) The composition of the Board of Directors shall be as provided in
Section 8.1 of the Shareholders Agreement.

     (k) The Corporation shall have obtained, with financially sound and
reputable insurers, directors' and officers' liability insurance in the amount
of at least US$5,000,000, or a binder with respect to such insurance in form and
substance satisfactory to each Investor.

     (l) The Corporation shall have obtained signed commitment letters for a
$550 million credit facility the proceeds of which will be used to finance the
Hibernia Project, in form and substance satisfactory to each Investor (the
"Hibernia Commitment").

     (m) Each other Investor shall concurrently purchase and pay for the
number of Class A Preferred Shares set forth opposite its name in Schedule 1.1.

     (n) There shall not have occurred any disruption or material adverse change
or development affecting financial, banking, currency or capital markets in
general in the United States in the reasonable opinion of the Investors.

     (o) With the proceeds of the Purchase Price, at Closing the
Corporation shall concurrently repurchase from WFH 45,000,000 Series C
Redeemable Preferred Shares for an aggregate amount of US$45,000,000 in cash.

     6.3. Conditions to the Obligations of the Corporation. The obligations of
the Corporation to consummate the Purchase 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 the Investors 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.

                                      -38-
<PAGE>

     (b)The Investors shall have complied in all material respects with all
their 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 Investor shall concurrently purchase and pay for the number of
Series A Non-Voting Preferred Shares set forth opposite such Investor's name on
Schedule 1.1.

     (d) The Shareholders Agreement shall be executed and delivered by each of
the Investors.

     6.4. Default by an Investor. If one or more of the Investors shall fail at
the Closing to purchase the Series A Non-Voting Preferred Shares set forth
opposite its name on Schedule 1.1 (the "Defaulted Shares"), each of the other
Investors shall have the right, but not any obligation, exercisable within 15
Business Days thereafter, to purchase its ratable share of the Defaulted Shares
and any additional Defaulted Shares that any other non-defaulting Investor shall
elect not to purchase pursuant to this Section 6.4.

     SECTION 7. Termination. The obligation of the parties to effect the
Purchase may be terminated (i) by the mutual written consent of the Corporation
and each of the Investors or (ii) by any party in writing, without liability to
such party on account of such termination (provided the terminating party is not
otherwise in material breach and/or default of this Agreement), if the Closing
shall not have occurred on or before October 4, 1999.

     SECTION 8. Transfer Taxes. The Corporation agrees that it will pay, and
will hold each Investor harmless from any and all liability with respect to, any
transfer, documentary or stamp taxes ("Transfer Taxes") which may be determined
to be payable in connection with the execution and delivery of this Agreement or
any modification, amendment or alteration of the terms or provisions of this
Agreement, and that it will similarly pay and hold each Investor harmless from
all such Transfer Taxes in respect of the issuance of any of the Transaction
Securities to such Investor.

     SECTION 9. Survival of Representations, Warranties, Agreements and
Covenants, etc. All representations and warranties in the Documents shall
survive the Closing until the second anniversary of the date hereof and shall in
no way be affected by any investigation of the subject matter thereof made by or
on behalf of any Investor; provided, however, (x) the representations and
warranties set forth in Sections 2.1, 2.2, 2.3, 2.4, 2.5, 2.11, 2.15, 2.19,
2.20, 2.21, 2.22, and 2.36 shall survive the Closing indefinitely and (y) the
representations and warranties set forth in Sections 2.9(a), 2.23, 2.26 and 2.27
shall survive the Closing until the expiration of all applicable statutes of
limitations. All statements contained in any certificate or other instrument
delivered by the Corporation pursuant to this Agreement shall constitute
representations and warranties by the Corporation under this Agreement. All
agreements and

                                      -39-
<PAGE>

covenants contained herein or any other Document shall survive indefinitely
until, by their respective terms, they are no longer operative.

     SECTION 10. Expenses. (a) Except as set forth in Section 10(b) and (c), the
Corporation and each Investor 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.

     (b) The Corporation shall promptly pay or reimburse the Investors for (and,
to the extent requested by the Investors, for expenses incurred prior to the
Closing, pay at the Closing): (i) the Investors' reasonable out-of-pocket
expenses (including, without limitation, all reasonable fees and expenses of
counsel of each of the Investors) arising in connection with the preparation,
negotiation and execution of the Documents and the other agreements or
instruments contemplated thereby, and the consummation of the transactions
contemplated thereby, (ii) the reasonable fees and expenses incurred by each
such Investor with respect to any amendments or waivers (whether or not the same
become effective) under or in respect of the Documents and the agreements
contemplated thereby (including, without limitation, in connection with any
proposed merger, sale or recapitalization of the Corporation), and (iii) the
fees and expenses incurred by the Investors in any filing with any governmental
agency with respect to its investment in the Corporation or in any other filing
with any governmental agency with respect to the Corporation that mentions any
Investor.

     (c) Notwithstanding anything herein to the contrary, no Investor will
receive or is entitled to receive any broker's fee, finder's fee, placement fee
or other similar fee or commission in connection with the Purchase or the
consummation of the transactions contemplated by this Agreement and the
Documents.

     SECTION 11. Indemnification.

     11.1. General Indemnification. The Corporation shall indemnify, defend and
hold each Investor, its affiliates, and each of their respective officers,
directors, partners, managing directors, affiliates, employees, agents,
consultants, representatives, successors and assigns (each an "Investor Entity")
harmless from and against all Losses (as defined below) incurred or suffered by
an Investor Entity (whether incurred or suffered directly or indirectly through
ownership of Series A Non-Voting Preferred Shares or Conversion Shares) arising
out of, relating to, or resulting from (a) any breach of any of the
representations, warranties, covenants or agreements made by it in this
Agreement or in any agreement, certificate or other instrument delivered
pursuant hereto including, without limitation, the Documents, and (b) any third
party claim made against an Investor Entity relating to any transaction by the
Corporation financed in whole or in part, directly or indirectly, with proceeds
from the sale of any of the Series A Non-Voting Preferred Shares or Common
Shares hereunder. Each Investor, severally and not jointly, shall indemnify,
defend and hold the Corporation, its affiliates, and each of their respective
officers, directors, employees, agents, consultants, representatives, successors
and assigns harmless against all

                                      -40-
<PAGE>

Losses arising from the breach of any of its representations, warranties,
covenants or agreements in this Agreement or in any certificate or other
instrument delivered pursuant hereto, including, without limitation, the
Documents. Notwithstanding anything to the contrary in this Agreement, no
indemnification payment by the Corporation pursuant to this Section 11 with
respect to any Losses otherwise payable hereunder as a result of a breach of its
representations and warranties (other than any Losses resulting from breaches of
the representations and warranties in Section 2.7, as they relate to Taxes,
Sections 2.26 and 2.27, to any covenants contained in this Agreement or any
other Document and to willful misrepresentation, fraud or deceit, which shall
not be subject to the Deductible or Limit) shall be payable (a) until the time
as such Losses shall aggregate (on a cumulative basis and not on a per item
basis) for all Investor Entities more than US$5,000,000 (the "Deductible"), and
then only to the extent that such Losses, in the aggregate for all Investors,
exceed the Deductible; or (b) with respect to the Investor Entities associated
with each Investor, in an aggregate amount in excess of the Purchase Price of
the shares issued to such Investor or its predecessors in interest as shown on
Schedule 1.1 hereto (as increased by the amounts by which the Series A
Non-Voting Liquidation Value, as defined in the Terms of the Series A Non-Voting
Preferred Shares, Series A in the Articles of Amendment, would increase from the
Closing Date to the date of determination) (the "Limit"). The Corporation shall
also indemnify, defend and hold harmless each Investor Entity against any and
all Losses (as defined in Section 11.2 and not subject to any Deductible or
Limit) arising under Title IV of ERISA, Section 302 of ERISA and Sections 412
and 4971 of the Code which may be incurred by any of them arising out of or
relating to any WFI Entity being or having been an ERISA Affiliate with any
other Person (other than another WFI Entity), whether such Losses arise out of
or relate to any event or state of facts occurring or existing before, on or
after the Closing Date.

     An "ERISA Affiliate" is defined as any entity that is (i) a member of a
"controlled group of corporations," under "common control" or a member of an
"affiliated service group" within the meaning of Section 414(b), (c) or (m) of
the Code, (ii) required to be aggregated under Section 414(o) of the Code, or
(iii) under "common control," within the meaning of Section 4001(a)(14) of
ERISA, or any regulations promulgated or proposed under any of the foregoing
Sections, in each case with any WFI Entity.

     11.2. Indemnification Principles. For purposes of this Section 11, "Losses"
shall mean each and all of the following items: claims, losses (including,
without limitation, losses of earnings), liabilities, obligations, payments,
damages (actual, punitive or consequential), charges, judgments, fines,
penalties, amounts paid in settlement, costs and expenses (including, without
limitation, interest which may be imposed in connection therewith), costs and
expenses of investigation, actions, suits, proceedings, demands, assessments and
fees, expenses and disbursements of counsel, consultants and other experts. For
purposes of Section 11.1(a) the Corporation shall not be obligated to indemnify,
defend or hold harmless any Investor Entity for any (i) punitive damages or (ii)
damages arising out of such Investor Entity's lost use of such Investor Entity's
share of the Purchase Price (as shown on Schedule 1.1 hereto) for an alternative
investment, except in any case where such damages are the result of the willful
misrepresentation, fraud or deceit of the

                                      -41-
<PAGE>

Corporation. Any indemnification payment by the Corporation to any Investor
pursuant to this Section 11 shall include an additional amount so that the
Investor does not, directly or indirectly, bear any portion of such payment made
by the Corporation with respect to such payment on account of the Investor's
direct or indirect investment in the Corporation as contemplated by the
Purchase. Any payment by the Corporation to an Investor pursuant to this Section
11, shall be treated for federal income tax purposes as a Purchase Price
Adjustment.

     11.3. Claim Notice. A party seeking indemnification under this Section 11
shall, promptly upon becoming aware of the facts indicating that a claim for
indemnification may be warranted, give to the party from whom indemnification is
being sought a claim notice relating to such Loss (a "Claim Notice"). Each Claim
Notice shall specify the nature of the claim, the applicable provision(s) of
this Agreement or other instrument under which the claim for indemnity arises,
and, if possible, the amount or the estimated amount thereof. No failure or
delay in giving a Claim Notice (so long as the same is given prior to expiration
of the representation or warranty upon which the claim is based) and no failure
to include any specific information relating to the claim (such as the amount or
estimated amount thereof) or any reference to any provision of this Agreement or
other instrument under which the claim arises shall affect the obligation of the
party from whom indemnity is sought except to the extent such party is
materially prejudiced thereby.

     11.4. Claim Procedure.

     (a) Procedure for Indemnification with Respect to Third-Party Claims. If
any indemnified party hereunder determines to seek indemnification under this
Section 11 with respect to Losses resulting from the assertion of liability by
third parties, such indemnified party shall give notice to the indemnifying
party hereunder within 30 days of such indemnified party becoming aware of any
such Losses or of facts upon which any claim for such Losses will be based; the
notice shall set forth such material information with respect thereto as is then
reasonably available to such indemnified party. In case any such liability is
asserted against such indemnified party, and such indemnified party notifies the
indemnifying party thereof, the indemnifying party will be entitled, if it so
elects by written notice delivered to such indemnified party within 10 days
after receiving such indemnified party's notice, to assume the defense thereof
with counsel satisfactory to such indemnified party, in which case, the
indemnifying party will not be liable to the indemnified party under this
Section 11.4 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof unless (i) the
indemnified party shall have employed separate counsel in accordance with the
following sentence or (ii) 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 commencement of the action, in each of
which cases the fees and expenses of counsel shall be at the expense of the
indemnifying party. Notwithstanding the foregoing, (i) such indemnified party
shall also have the right to employ its own counsel in any such case, but the
fees and expenses of such counsel shall be at the expense of such indemnified
party unless such indemnified party shall reasonably determine that there is a
conflict of interest between or among such indemnified party and the
indemnifying party with re-

                                      -42-
<PAGE>

spect to such claim, in which case the fees and expenses of such counsel will be
borne by the indemnifying party, (ii) such indemnified party shall not have any
obligation to give any notice of any assertion of liability by a third party
unless such assertion is in writing, (iii) the rights of such indemnified party
to be indemnified hereunder in respect of any Losses that may or do result from
the assertion of liability by third parties shall not be adversely affected by
its failure to give notice pursuant to the foregoing unless, and, if so, only to
the extent that, the indemnifying party is materially prejudiced thereby, and
(iv) the indemnifying party's obligations to such indemnified party under this
Section 11 shall not terminate until such indemnified party's claims have been
finally satisfied to such indemnified party's sole satisfaction. In the event
that the indemnifying party, within 10 days after receipt of the aforesaid
notice of a claim hereunder, fails to assume the defense of such indemnified
party against such claim, such indemnified party shall have the right to
undertake the defense, compromise, or settlement of such action on behalf of and
for the account, expense, and risk of the indemnifying party.

     Notwithstanding anything in this Section 11 to the contrary, (i) if there
is a reasonable probability that a claim may materially adversely affect such
indemnified party, such indemnified party shall have the right to participate in
such defense, compromise, or settlement and the indemnifying party shall not,
without such indemnified party's written consent (which consent shall not be
unreasonably withheld), settle or compromise any of such claims, or consent to
entry of any judgment in respect thereof unless such settlement, compromise, or
consent includes as an unconditional term thereof the giving by the claimant or
the plaintiff to such indemnified party a release from all liability in respect
of such claim. With respect to any assertion of liability by a third party that
results in any claim for indemnification hereunder, the parties hereto shall
make available to each other all relevant information in their possession
material to any such assertion.

     (b) Procedure For Indemnification with Respect to Non-Third Party Claims.
In the event that an indemnified party asserts the existence of a claim with
respect to Losses (but excluding claims resulting from the assertion of
liability by third parties), it shall give written notice to the indemnifying
party. Such written notice shall state that it is being given pursuant to this
Section 11.4(b), specify the nature and amount of the claim asserted, and
indicate the date on which such assertion shall be deemed accepted and the
amount of the claim deemed a valid claim (such date to be established in
accordance with the next sentence). If the indemnifying party, within 30 days
after the mailing of notice by such indemnified party, shall not give written
notice to such indemnified party announcing its intent to contest such assertion
of such indemnified party, such assertion shall be deemed accepted and the
amount of claim shall be deemed a valid claim. In the event, however, that the
indemnifying party contests the assertion of a claim by giving such written
notice to such indemnified party within said period, then the parties shall act
in good faith to reach agreement regarding such claim. In the event that
litigation shall arise with respect to any such claim, the prevailing party
shall be entitled to reimbursement of costs and expenses incurred in connection
with such litigation including attorney fees, if the parties hereto, acting in
good faith, cannot reach agreement with respect to such claim within ten days
after such notice.

                                      -43-
<PAGE>

     SECTION 12. Remedies. In case any one or more of the covenants and/or
agreements set forth in this Agreement shall have been breached by the
Corporation, each Investor may proceed to protect and enforce its rights either
by suit in equity and/or by action at law, including, but not limited to, an
action for damages as a result of any such breach and/or an action for specific
performance of any such covenant or agreement contained in this Agreement, and
to exercise all other rights existing in their favor. The parties hereto agree
and acknowledge that money damages may not be an adequate remedy for any breach
of the provisions of this Agreement and that each party may in its sole
discretion apply to any court of law or equity of competent jurisdiction for
specific performance and/or injunctive relief (without posting a bond or other
security) in order to enforce or prevent any violation of the provisions of this
Agreement.

     SECTION 13. Further Assurances. At any time or from time to time after the
Closing, the Corporation, on the one hand, and each Investor, 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 party may reasonably request in order to evidence or
effectuate the consummation of the transactions contemplated hereby relating to
the Purchase and to otherwise carry out the intent of the parties hereunder.

     SECTION 14. Successors and Assigns. This Agreement shall bind and inure to
the benefit of the Corporation and the Investors and the respective successors,
Permitted Assigns, heirs and personal representatives of the Corporation and the
Investors. In addition, and whether or not any express assignment has been made,
except as otherwise expressly stated in this Agreement, the provisions of this
Agreement which are for each of the Investor's benefit as a purchaser or holder
of Transaction Securities are also for the benefit of, and enforceable by, any
permitted subsequent holder of such Transaction Securities. The parties
acknowledge that, subject to compliance with applicable securities laws, each
Investor may transfer and assign all or a part of its rights and obligations
under this Agreement to one or more other partnerships, corporations, trusts or
other organizations which have been created by, or are controlled by, control or
are under common control with such Investor or one or more of the current
partners, members or other equity holders of such Investor, without the consent
of the Corporation (collectively, "Permitted Assigns"). This Agreement shall not
be assignable by the Corporation, without the consent of each of the Investors.

     SECTION 15. Entire Agreement. This Agreement and the other writings
referred to herein or delivered pursuant hereto which form a part hereof contain
the entire agreement among the parties with respect to the subject matter hereof
and supersede all prior and contemporaneous arrangements or understandings with
respect thereto including, but not limited to, that certain letter of intent,
dated August 5, 1999, between the Corporation and the Investors.

                                      -44-
<PAGE>

     SECTION 16. Notices. All notices, requests, consents and other
communications hereunder to any party shall be deemed to be sufficient if
contained in a written instrument delivered in person or sent by fax, nationally
recognized overnight courier or first class registered or certified mail, return
receipt requested, postage prepaid, addressed to such party at the address set
forth below or such other address as may hereafter be designated in writing by
such party to the other parties:

                       (i) if to the Corporation, to:

                           Worldwide Fiber Inc.
                           #1510-1066 West Hastings Street
                           Vancouver, British Columbia  V6E 3X1
                           Fax:  (604) 681-6822
                           Attention:  Stephen Stow

                           with a copy to:

                           Farris, Vaughan, Wills & Murphy
                           2600-700 West Georgia Street
                           Vancouver, British Columbia  V7Y 1B3
                           Fax:  (604) 661-9349
                           Attention:  Cameron G. Belsher

                           with a copy to:

                           Cahill Gordon & Reindel
                           Eighty Pine Street
                           New York, New York  10005
                           Fax:  (212) 269-5420
                           Attention:  Roger Andrus

                 (ii)      if to DLJ, to:

                           DWF SRL
                           Chancery House
                           High Street
                           Bridgetown
                           Barbados, West Indies
                           Fax:  (246) 431-0076

                                      -45-
<PAGE>

                           and

                           DWF SRL
                           c/o DLJ Merchant Banking Partners II, L.P.
                           277 Park Avenue
                           New York, New York  10172
                           Fax:  (212) 892-7272
                           Attention:  Andrew Rush

                           with a copy to:

                           Latham & Watkins
                           885 Third Avenue
                           New York, New York  10022
                           Fax:  (212) 751-4864
                           Attention:  Steven Della Rocca

                (iii)      if to any of the GSCP Parties, to:

                           c/o Ernst & Young Services, Ltd.
                           P.O. Box 261
                           Bay Street
                           Bridgetown, Barbados
                           Fax:  (246) 426-9551
                           Attention:  Carol-Ann Smith

                           and

                           c/o GS Capital Partners III, L.P.
                           85 Broad Street
                           New York, New York  10004
                           Fax:  (212) 902-3000
                           Attention:  Robert Gheewalla

                           with copies to:

                           Fried, Frank, Harris, Shriver & Jacobson
                           One New York Plaza
                           New York, New York  10004
                           Fax:  (212) 859-4000
                           Attention:  Stuart Z. Katz

                                      -46-
<PAGE>

                           and

                           GS Capital Partners III, L.P.
                           85 Broad Street
                           New York, New York  10004
                           Fax:  (212) 357-5505
                           Attention:  Ben Adler

                 (iv)      if to Providence, to:

                           Providence Equity Fiber, L.P.
                           50 Kennedy Plaza
                           Providence, Rhode Island  02903
                           Fax:  (401) 751-1790
                           Attention:  Glenn M. Creamer

                           with a copy to:

                           Edwards & Angell, LLP
                           2800 BankBoston Plaza
                           Providence, Rhode Island  02903
                           Fax:  (401) 276-6602
                           Attention:  David K. Duffell

                  (v)      if to Tyco, to:

                           c/o Tyco Group s.a.r.l.
                           2nd Floor
                           6, Avenue Emile Reuter
                           L-2420 Luxembourg
                           Fax:  (352) 464-350
                           Attention:  Managing Director

                           with a copy to:

                           Tyco Submarine System Ltd.
                           250 Industrial Way West
                           Eatontown, New Jersey  07724
                           Fax:  (732) 578-7803
                           Attention:  General Counsel

     All such notices, requests, consents and other communications shall be
deemed to have been given when received.

                                      -47-
<PAGE>

     SECTION 17. Amendments. The terms and provisions of this Agreement may be
modified or amended, or any of the provisions hereof waived, temporarily or
permanently, pursuant to the written consent of the Corporation and each of the
Investors.

     SECTION 18. Counterparts. This Agreement may be executed in any number of
counterparts, and each such counterpart hereof shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement.

     SECTION 19. Headings. The headings of the sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be a
part of this Agreement.

     SECTION 20. Nouns and Pronouns. Whenever the context may require, any
pronouns used herein shall include the corresponding masculine, feminine or
neuter forms, and the singular form of names and pronouns shall include the
plural and vice versa.

     SECTION 21. Governing Law; Waiver of Jury Trial. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without giving effect to the principles of conflicts of law. Each of the parties
hereto hereby irrevocably and unconditionally consents to submit to the
exclusive jurisdiction of the courts of the State of New York and of the United
States of America, in each case located in the County of New York, for any
action, proceeding or investigation in any court or before any governmental
authority ("Litigation") arising out of or relating to this Agreement and the
transactions contemplated hereby (and agrees not to commence any Litigation
relating thereto except in such courts), and further agrees that service of any
process, summons, notice or document by registered mail to its respective
address set forth in this Agreement shall be effective service of process for
any Litigation brought against it in any such court. Each of the parties hereto
hereby irrevocably and unconditionally waives any objection to the laying of
venue of any Litigation arising out of this Agreement or the transactions
contemplated hereby in the courts of the State of New York or the United States
of America, in each case located in the County of New York, and hereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any
such court that any such Litigation brought in any such court has been brought
in an inconvenient forum. Each of the parties irrevocably and unconditionally
waives, to the fullest extent permitted by applicable law, any and all rights to
trial by jury in connection with any Litigation arising out of or relating to
this Agreement or the transactions contemplated hereby.

     SECTION 22. Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be

                                      -48-
<PAGE>

effective and valid, but if any provision of this Agreement is held to be
invalid or unenforceable in any respect, such invalidity or unenforceability
shall not render invalid or unenforceable any other provision of this Agreement.

     SECTION 23. Currency. Unless otherwise indicated, references to "dollars",
"$" or U.S. dollars and references to "C$" are to Canadian dollars.

     SECTION 24. 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.

                                      -49-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed this agreement as
of the date first above written.

                            CORPORATION:

                            WORLDWIDE FIBER INC.

                            By:
                                -------------------------------------------
                                Name:
                                Title:

                            DWF SRL

                            By:
                                -------------------------------------------
                                Name:
                                Title:

                            GSCP3 WWF (BARBADOS) SRL

                            By:
                                -------------------------------------------
                                Name:
                                Title:

(Signature Page to Preferred
Share Purchase Agreement)

                                      -50-
<PAGE>

                            WWF (BARBADOS) SRL

                            By:
                                -------------------------------------------
                                Name:
                                Title:

                            PROVIDENCE EQUITY FIBER L.P.

                            by its General Partner,
                            Providence Equity Partners III L.P.

                            by its General Partner,
                            Providence Equity Partners III L.L.C.

                            By:
                                  ----------------------------------------
                                  Name:  Glenn M. Creamer
                                  Title:    Member and Managing Director

                            TYCO GROUP S.A.R.L.

                            By:
                                -------------------------------------------
                                Name:
                                Title:

(Signature Page to Preferred
Share Purchase Agreement)

                                      -51-
<PAGE>

<TABLE>
<CAPTION>
                                  SCHEDULE 1.1

                                  Number of Series A Non-Voting               Total
           Investor                      Preferred Shares                Purchase Price*
           --------                      ----------------                --------------

<S>                                     <C>                         <C>
[               ]**                     [               ]**          $[                     ]**

[               ]**                     [               ]**          $[                     ]**

[               ]**                     [               ]**          $[                     ]**
[               ]**                     [               ]**          $[                     ]**
[               ]**                     [               ]**          $[                     ]**
                                        ------------------          -------------------------
TOTAL                                       8,866,808               $          345,000,000.00
                                                                    =========================

* Per Share Price equal to $38.909.

</TABLE>

----------

**   Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to a request for confidential treatment under Rule 406.
<PAGE>

<TABLE>
<CAPTION>
                                 SCHEDULE 2.1(a)

                         WFI Entities and Jurisdictions

                                                                                Jurisdiction of Incorporation/
                                                                                [   ] brackets Denote Foreign
Name                                                                            Registrations
----                                                                            -------------

Registrations
-------------

<S>      <C>                                                                    <C>
1.       Worldwide Fiber Communications Ltd.                                    Alberta

2.       Ledcom Holdings Ltd.                                                   Alberta

3.       Ledcor Communications Ltd.                                             Alberta [British Columbia],
                                                                                Ontario, Saskatchewan,
                                                                                New Brunswick*, Nova Scotia*

4.       Ledcor Cayer Inc.                                                      Quebec

5.       Ledcor Engineering Inc.                                                Ontario

6.       Worldwide Fiber Finance Ltd.                                           Alberta

7.       Worldwide Fiber Networks Ltd.                                          Alberta [British Columbia]

8.       Worldwide Fiber (F.O.T.S.) Ltd.                                        Alberta

9.       Worldwide Fiber (F.O.T.S.) No. 2, Inc.                                 Alberta

10.      WFI-CN Fibre Inc.                                                      Canada [British Columbia]

11.      Ledcor Communications, Inc.                                            Nevada

12.      Worldwide Fiber (USA), Inc.                                            Nevada (See Note 1)

13.      Worldwide Fiber Networks, Inc.                                         Nevada (See Note 1)

14.      Worldwide Fiber (F.O.T.S.), Inc.                                       Nevada

15.      Worldwide Fiber IC Holdings, Inc.                                      Nevada

16.      Worldwide Fiber IC LLC                                                 Delaware

17.      IC Fiber Alabama LLC                                                   Delaware

18.      IC Fiber Illinois LLC                                                  Delaware

19.      IC Fiber Iowa LLC                                                      Delaware

20.      IC Fiber Kentucky LLC                                                  Delaware

21.      IC Fiber Louisiana LLC                                                 Delaware

22.      IC Fiber Mississippi LLC                                               Delaware

23.      IC Fiber Tennessee LLC                                                 Delaware

24.      PFL Holdings, Inc.                                                     Nevada

25.      Pacific Fiber Link SEA-POR, Inc. (not active)                          Nevada

26.      Pacific Fiber Link MON-ALB, Inc. (not active)                          Nevada

<PAGE>

                                                                                Jurisdiction of Incorporation/
                                                                                [   ] brackets Denote Foreign
Name                                                                            Registrations
----                                                                            -------------

27.      WFI Liquidity Management Hungary Limited Liability Company             Hungary

28.      Worldwide Telecom (Canada) Inc.                                        Alberta

29.      Worldwide Telecom (USA) Inc.                                           Nevada

30.      Worldwide Telecom (Barbados) Inc.                                      Barbados

31.      WTI Telecom (UK) Limited                                               United Kingdom

32.      WTI Telecom (Ireland) Limited                                          Ireland

33.      Worldwide Telecom (Denmark) ApS                                        Denmark

34.      Worldwide Telecom Limited                                              Bermuda

35.      Worldwide Telecom (Bermuda) Holdings Ltd.                              Bermuda

36.      Worldwide Telecom (Bermuda) Ltd.                                       Bermuda

</TABLE>
Notes:

1.   Worldwide Fiber (USA) Inc. is the holding company parent for the operating
     company Worldwide Fiber Networks, Inc. which carries on business in the
     following states: California, Colorado, Illinois, Iowa, Oregon, Virginia,
     Washington, New York.

2.   * denotes extra-provincial registration in process.

                                      -2-
<PAGE>

<TABLE>
<CAPTION>
                           SCHEDULE 2.3(b)(i) - Part 1

                          Shareholders of WFI Entities
                                                                                                                             % of
                                                                                                                             Total
                                                                                                                     % of    Votes
                                                                                                                     Total    of
                                                                          Canadian   No. and Class                   Common  Voting
          Name of Entity                    Shareholders of Record        1(yes/no)  of Shares Held                  Shares  Shares
-----------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>                                      <C>      <C>                            <C>       <C>
Worldwide Fiber Inc.                Worldwide Fiber Holdings Ltd.             Yes     25,000,000 Class A Common       .9940    .9940
(See Schedule 2.3(b)(i) Part II     Mackenzie Partners, LLC                    No     150,000 Class A Common          .0060    .0060
for post-closing shareholdings)

Ledcom Holdings Ltd.                Worldwide Fiber Communications Ltd.       Yes     50 Class A Common                50%       50%
                                    Ledcor Inc.                               Yes     50 Class A Common                50%       50%
                                    Ledcor Industries Limited                 Yes     1,000,000 Class II Preferred     n/a       n/a

Ledcor Communications Ltd.          Worldwide Fiber Communications Ltd.       Yes     200 Class A Common              100%      100%

Ledcor Cayer Inc.                   Ledcor Communications Ltd.                Yes     20,000 Common                   100%      100%

Ledcor Engineering Inc.             Ledcor Communications Ltd.                Yes     1 Common                        100%      100%

Worldwide Fiber Finance Ltd.        Ledcor Communications Ltd.                Yes     1 Class A Common                100%      100%

Worldwide Fiber Networks Ltd.       Worldwide Fiber Inc.                      Yes     3,001,001 Class A Common        100%      100%

Worldwide Fiber (F.O.T.S.) Ltd.     Worldwide Fiber Networks Ltd.             Yes     5,000,000 Class A Common        100%      100%

Worldwide Fiber (F.O.T.S.) No. 2,   Worldwide Fiber Networks Ltd.             Yes     1,000 Class A Common            100%      100%
Inc.

WFI-CN Fibre Inc.                   Worldwide Fiber Networks Ltd.             Yes     75 Class A Common                75%       75%
                                    Canadian National Railway Company         Yes     25 Class A Common                25%       25%

----------

1  "Canadian" for purposes of thresholds in Telecommunications Act (Canada).

<PAGE>
                                                                                                                             % of
                                                                                                                             Total
                                                                                                                     % of    Votes
                                                                                                                     Total    of
                                                                          Canadian   No. and Class                   Common  Voting
          Name of Entity                    Shareholders of Record        1(yes/no)  of Shares Held                  Shares  Shares
-----------------------------------------------------------------------------------------------------------------------------------

Worldwide Fiber                     Worldwide Fiber Inc.                      Yes     1,000,100 Class A Common        100%      100%
Communications Ltd.

Ledcor Communications, Inc.         Worldwide Fiber Communications Ltd.       Yes     100 Common                      100%      100%

Worldwide Fiber (USA), Inc.         Worldwide Fiber Networks Ltd.             Yes     130 Class A Voting Preferred     75%       65%
                                    Mi-Tech Communications LLC                 No     150 Non-Voting Common            25%       25%
                                    Ledcor Communications Ltd.                        50 Class A Voting Preferred     [n/a]      10%
                                                                                      50 Non-Voting Common
                                                                                      20 Class A Voting Preferred

Worldwide Fiber Networks, Inc.      Worldwide Fiber (USA), Inc.                No                                     100%      100%

Worldwide Fiber (F.O.T.S.), Inc.    Worldwide Fiber Networks Ltd.             Yes      200 Common                     100%      100%

Worldwide Fiber IC Holdings, Inc.   Worldwide Fiber Networks Ltd.             Yes     1 Common                        100%      100%

Worldwide Fiber IC LLC              Worldwide Fiber IC Holdings, Inc.          No     75 Units                         75%       75%
                                    IC Fiber Holding Inc.                      No     25 Units                         25%       25%

IC Fiber Alabama LLC                Worldwide Fiber IC LLC                     No                                     100%      100%

IC Fiber Illinois LLC               Worldwide Fiber IC LLC                     No                                     100%      100%

IC Fiber Iowa LLC                   Worldwide Fiber IC LLC                     No                                     100%      100%

IC Fiber Kentucky LLC               Worldwide Fiber IC LLC                     No                                     100%      100%

IC Fiber Louisiana LLC              Worldwide Fiber IC LLC                     No                                     100%      100%

IC Fiber Mississippi LLC            Worldwide Fiber IC LLC                     No                                     100%      100%

IC Fiber Tennessee LLC              Worldwide Fiber IC LLC                     No                                     100%      100%

PFL Holdings, Inc.                  Worldwide Fiber Networks Ltd.              No                                     100%      100%

                                      -2-
<PAGE>

                                                                                                                             % of
                                                                                                                             Total
                                                                                                                     % of    Votes
                                                                                                                     Total    of
                                                                          Canadian   No. and Class                   Common  Voting
          Name of Entity                    Shareholders of Record        1(yes/no)  of Shares Held                  Shares  Shares
-----------------------------------------------------------------------------------------------------------------------------------

Pacific Fiber Link SEA-POR, Inc.    Worldwide Fiber Networks Ltd.              No     1 Common Share                  100%      100%

Pacific Fiber Link MON-ALB, Inc.    Worldwide Fiber Networks Ltd.              No     1 Common Share                  100%      100%

WFI Liquidity Management Hungary    Worldwide Fiber Finance Ltd.               No                                     100%      100%
Limited Liability Company

Worldwide Telecom (Bermuda) Ltd.    Worldwide Telecom Ltd.                     No     12,000 Shares                   100%      100%

Worldwide Telecom (Bermuda)         Worldwide Fiber Networks Ltd.              No                                     100%      100%
Holdings Ltd.                       [to be verified]

Worldwide Telecom Limited           Worldwide Telecom (Bermuda) Holdings       No     12,000 Shares                   100%      100%
                                    Ltd.

Worldwide Telecom (Denmark) ApS     Worldwide Telecom (Bermuda) Ltd.           No                                     100%      100%

WTI Telecom (Ireland) Limited       Worldwide Telecom (Denmark) ApS            No      1 Ordinary Share               100%      100%

WTI Telecom (UK) Limited            Worldwide Telecom (Denmark) ApS            No                                     100%      100%

Worldwide Telecom (Barbados) Inc.   Worldwide Telecom (Bermuda) Ltd.           No     12,000 Shares                   100%      100%

Worldwide Telecom (USA) Inc.        Worldwide Telecom (Denmark) ApS            No     100 Common Shares               100%      100%

Worldwide Telecom (Canada) Inc.     Worldwide Telecom (Denmark) ApS            No     100 Class A Common Voting       100%      100%
                                                                                      Shares

</TABLE>

                                      -3-
<PAGE>

<TABLE>
<CAPTION>
                           SCHEDULE 2.3(b)(i)-Part II

           Shareholders of WFI Entities Immediately Following Closing

                                                                                                                        % of
                                                                                                                        Total
                                                                                                           % of         Votes
                                                                                                           Total          of
                                                         Canadian       No. and Class                      Common       Voting
Name of Entity            Shareholders of Record         2(yes/no)      of Shares Held                     Shares       Shares
----------------------------------------------------------------------------------------------------------------------------------

<S>                       <C>                               <C>          <C>                               <C>          <C>
Worldwide Fiber Inc.      Worldwide Fiber Holdings Ltd.     Yes          23,843,500 Class B                99.375%      99.375%
                                                                         Subordinate Voting Shares
                          Mackenzie Partners, LLC           No           150,000 Class B Subordinate         .625%        .625%
                                                                         Voting Shares
                          Tyco Group S.a.r.l.               No           3,212,600 Series A Preferred
                                                                         Non-Voting Shares
                          Providence Equity Fiber, L.P.     No           1,884,736 Series A Preferred
                                                                         Non-Voting Shares
                          DWF SRL                           No           1,884,736 Series A Preferred
                                                                         Non-Voting Shares
                          GSCP3 WWF (Barbados) SRL          No           1,387,757 Series A Preferred
                                                                         Non-Voting Shares
                          WWF (Barbados) SRL                No           496,979 Series A Preferred
                                                                         Non-Voting Shares
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

Note: Following Closing, the shareholdings of all other WFI Entities remain
      unchanged from those described in Schedule 2.3(b)(i) - Part I.

----------

2  "Canadian" for purposes of thresholds in Telecommunications Act (Canada).

<PAGE>

                               SCHEDULE 2.3(b)(ii)

                          WFI Common Share Equivalents

1.   The rights of each of Worldwide Fiber Communications Ltd. and Ledcor Inc.
     to acquire the shares of the other in the capital of Ledcom Holdings Ltd.
     pursuant to the unanimous shareholders agreement of Ledcom Holdings Ltd.
     dated December 1, 1998. Both Worldwide Fiber Communications Ltd. and Ledcor
     Inc. are "Canadian."

2.   The right of Ramsey-Beirne Investment Partners, LLC to acquire up to
     $[        ]*(US) of shares in the capital of Worldwide Fiber Inc. pursuant
     to Terms of Agreement dated July 7, 1999.

3.   Any statutory pre-emptive or similar rights applicable in the jurisdictions
     of incorporation of the WFI Subsidiaries.

4.   Options granted to WFI and Affiliated companies pursuant to the 1998
     Employee Long Term Incentive and Share Award Plan (ESOP) as follows:

<TABLE>
<CAPTION>
                                                                                       Option Shares
     First Vesting Date               No. of Shares             Exercise Price       Held by Canadians
     ------------------               -------------             --------------       -----------------
     <S>                         <C>                                 <C>             <C>
     [               ]*           [               ]*                  [  }*          [               ]*
     [               ]*           [               ]*                  [  ]*          [               ]*
     [               ]*           [               ]*                  [  ]*          [               ]*
     [               ]*           [               ]*                  [  ]*          [               ]*
     [               ]*           [               ]*                                 [               ]*
                                 ------------------                                  ------------------
</TABLE>

Note:

     4.1  Further particulars of the options described above have been provided
          to the Investors by separate certificate.

     4.2  The options provide for exercise of 25% of total options granted to
          the holder each year, with the exercise date for the first 25% tranche
          being the first anniversary of the grant date.

     4.3  The ESOP options permit purchase of common stock of Worldwide Fiber
          Inc. and lapse approximately ten years following grant.

     4.4  "Canadian" has the meaning set forth in Telecommunications Act
          (Canada) Regulations. Status of all option holders is being verified,
          but is believed to be 90% accurate based on current information.

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

<PAGE>

     5.   The issuance of shares pursuant to the Minority Roll-Up Agreements
          described as (a), (b) and (c) in the definition of that term.

     6.   An Irrevocable Right to Purchase dated March 6, 1998 between Larry
          Olsen, Stephen Stow, David Lede and Clifford Lede on behalf of the
          Ledcor group, particulars of which have been provided to the
          Investors. Larry Olsen is "Canadian."

     7.   The 4,500,000 Class C Multiple Voting Shares to be issued pursuant to
          the Ledcor Roll-Up.

                                      -2-
<PAGE>

                               SCHEDULE 2.3(b)(iv)

                     WFI Share Encumbrances or Restrictions

1.   The pledge of shares to be granted by all of the Subsidiaries pursuant to
     the security to be granted and agreements to be executed as contemplated in
     the commitment letter entered into by Worldwide Fiber Inc. with Citibank
     Canada in connection with a senior secured revolving credit facility and
     purchase money facility for Worldwide Fiber Inc. of up to $150 million.

2.   Those agreements and rights described in items 1, 2, 3, 5, 6 and 7 of
     Schedule 2.3 (b) (ii).

3.   The first rights to purchase granted to WFI by Mackenzie Partners, LLC and
     Jim Voelker in a Subscription Agreement dated August 11, 1999, as amended
     by Amendment No. 1 dated August 31, 1999.

4.   The security interests described as items 3, 5 and 6 in Schedule 2.15(a).

<PAGE>

                               SCHEDULE 2.3(b)(v)

                      Rights to Nominate or Elect Directors

1.   The rights held by Canadian National Railway Company pursuant to the
     unanimous shareholders agreement of WFI-CN Fibre Inc. dated May 28, 1999.

2.   The rights held by IC Fiber Holding Inc. (Illinois Central Railroad
     Company) pursuant to the limited liability company agreement of Worldwide
     Fiber IC LLC dated May 28, 1999.

3.   The rights held by Mi-Tech Communications LLC pursuant to the unanimous
     shareholders agreement of Worldwide Fiber (USA) Inc. dated December 31,
     1998.

<PAGE>

                                  SCHEDULE 2.7

                             Undisclosed Liabilities

1.   Claims which may arise in the ordinary course of business related to:
     restoration, maintenance or similar contractual obligations in connection
     with construction contract obligations, none of which claims of any
     material nature are known to the Corporation at this time.

2.   Liabilities related to construction deficiencies, and the Corporation has
     no knowledge to date of any material deficiencies of this nature.

3.   Purchase orders related to the acquisition of telecommunications equipment
     from Nortel Networks in the approximate amount of $47,600,000 (US).

4.   Joint Build and Swap Agreement with Enron Communications Ltd. from Denver,
     Colorado to Texas to New Orleans route, for fiber strands having a value of
     approximately $60 million.

5.   Obligations to be assumed by the WFI Entity acquiring fiber assets pursuant
     to the terms of the Ledcor Roll-Up Agreement.

<PAGE>

                                  SCHEDULE 2.8

                                     Changes

1.   The amended and restated share purchase agreement entered into between
     Worldwide Fiber Inc., Ledcor Industries Limited and Ledcor Industries, Inc.
     dated September 7, 1999 and the obligations to be assumed on completion of
     that transaction.

2.   The commitment to arrange a senior secured revolving credit facility and
     purchase money facility for the Corporation up to $150 million in aggregate
     with Citibank Canada.

3.   The obligations incurred, transactions entered into and companies
     incorporated in connection with the Hibernia Project.

4.   The decision of Worldwide Fiber Inc. to add optronics and electrical
     equipment to market its bandwidth technology as described in the Offering
     Memorandum of the Corporation dated July 23, 1999.

5.   The agreements entered into whereby the Corporation issued Series B 12 1/2%
     Senior Notes due 2005 and Series A 12% Senior Notes due 2009.

6.   The continuance of the jurisdiction of incorporation of Worldwide Fiber
     Inc. from Alberta to Canada.

7.   Employee housing loans not exceeding $500,000 (US) in aggregate.

8.   Options granted to directors of the Corporation and to employees pursuant
     to the 1998 Employee Long Term Incentive and Share Award Plan.

9.   The expenses, capital expenditures and other items reflected in the June
     30, 1999 financial statements of the Corporation.

10.  Those items listed in any Schedules to this Agreement, which by their
     description indicate they have occurred or will occur subsequent to
     December 31, 1998.

11.  The issue of 150,000 Class A Common shares of the Corporation to Mackenzie
     Partners, LLC.

12.  Proceedings before the Canadian Radio-television and Telecommunications
     Commission under Part VII of the Telecommunications Act, respecting the
     terms of Worldwide Fiber (F.O.T.S.) Ltd.'s access to City of Vancouver
     streets to install fiber optic cable and related equipment.

<PAGE>

13.  California Public Utilities Commission stop work order pending
     environmental report and review for Portland to Los Angeles segment of
     build in California.

14.  Contractor claim for construction extras on Seattle-Portland route of
     approximately $500,000 (no proceedings instituted).

15.  The issue of 5,000,000 Series C Redeemable Preferred Shares as a stock
     dividend to Worldwide Fiber Holdings Ltd.

16.  The issuance of 23,843,500 Class B Subordinate Voting Shares and 40,000,000
     Series C Redeemable Preferred Shares to Worldwide Fiber Holdings Ltd. as
     consideration for the acquisition of 25,000,000 outstanding Class B
     Subordinate Voting Shares from Worldwide Fiber Holdings Ltd. concurrent
     with closing.

17.  The repurchase of the 45,000,000 Series C Redeemable Preferred Shares from
     Worldwide Fiber Holdings Ltd. concurrent with Closing.

18.  Section 85 elections under the Income Tax Act (Canada) in connection with
     the transfer of certain fiber assets from Ledcor Industries Limited to the
     Corporation or its subsidiaries.

                                      -2-
<PAGE>

                                SCHEDULE 2.10(a)

                                   Agreements

1.   The Supply Contract between Worldwide Telecom (Bermuda) Ltd. (now Worldwide
     Telecom (Barbados) Inc.) and Tyco Submarine Systems Ltd. dated June 18,
     1999.

2.   Construction Services Agreement dated March 2, 1999 issued to C & S Network
     Construction (Butte County Line to Round Mountain, California).

3.   Fiber Optic Agreement (Edmonton-Toronto CPR Build) made between Canadian
     Pacific Railway Company and BCT.Telus Communications Inc. and Worldwide
     Fiber Inc. dated June 15, 1999.

4.   Agreement for the Purchase and Sale of Strands and Facilities for Fiber
     Optic Network (Future Build) made between BCT.Telus Communications Inc. and
     Worldwide Fiber Inc. dated April 30, 1999.

5.   Agreement for the Purchase and Sale of Strands and Facilities for Fibre
     Optic Network (Canadian Future Build) made between Worldwide Fiber Inc. and
     MetroNet Fibre Canada Inc. dated October 30, 1998.

6.   Build Agreement made between GST Telecom Inc. and Pacific Fiber Link, LLC.
     (LA, Mira Mesa and California) dated April 2, 1999.

7.   Enron Agreements:

     (a)  Conduit and Fiber Lease between Worldwide Fiber Networks, Inc., a
          Nevada corporation and Enron Communications, Inc., an Oregon
          corporation, dated June 30, 1999.
          Routes: Fiber. Buffalo to Albany; Seattle to Vancouver, B.C; and
          either Albany to New York City or Los Angeles to San Diego. Conduit.
          Denver.

     (b)  Fiber Lease between Enron Communications, Inc., an Oregon corporation
          and Worldwide Fiber Networks, Inc., a Nevada corporation.

          Routes: Amarillo to Austin to Houston to New Orleans.

     (c)  Fiber Lease between 3636607 Canada, Inc., a Canadian corporation and
          Worldwide Fiber Inc., a province of Alberta, Canada corporation.

          Routes: Detroit to Buffalo and Seattle to Vancouver, B.C.

     (d)  IRU Swap Agreement between Enron Communications, Inc., an Oregon
          corporation and Worldwide Fiber Inc., a province of Alberta, Canada
          corporation

<PAGE>

          Routes: WFI to provide fibers to Enron from Minneapolis to Detroit.
          Enron to provide fibers to WFI from Denver to Houston.

8.   GST Agreements:

     (a)  Joint development agreement between GST Telecom Inc., a Delaware
          corporation and Pacific Fiber Link, LLC, a Washington limited
          liability company, dated April 2, 1999.
          Route: Los Angeles to Mira Mesa

     (b)  Joint development agreement between Pacific Fiber Link, LLC, a
          Washington limited liability company and GST Telecom Inc., a Delaware
          corporation, dated August 5, 1998.

9.   Level 3 Agreements:

     (a)  Conduit Sale Agreement between Pacific Fiber Link, Inc., a Nevada
          corporation and Level 3 Communications, LLC, a Delaware limited
          liability company, dated March 31, 1999. [          ]*

     (b)  Conduit Sale Agreement between Pacific Fiber Link, Inc., a Nevada
          corporation and Level 3 Communications, LLC, a Delaware limited
          liability company, dated March 19, 1999. [           }*

     (c)  Conduit Sale Agreement between Worldwide Fiber Networks, Inc., a
          Nevada corporation and Level 3 Communications, LLC, a Delaware limited
          liability company, dated May 17, 1999. [          ]*

     (d)  Agreement between Worldwide Fiber, Inc., an Alberta, Canada limited
          liability company and Level 3 Communications, LLC, a Delaware limited
          liability company, dated November 19, 1998. [          ]*

10.  Joint development agreement between Pacific Fiber Link, Inc., a Nevada
     corporation and Williams Communications, Inc., a Delaware corporation,
     dated December 29, 1998. [          ]*

11.  Joint development agreement between Pacific Fiber Link, LLC, a Washington
     limited liability company and Pathnet, Inc., a Delaware corporation, dated
     March 31, 1999. [          ]*

12.  Pre-construction IRU Agreement between FTV Communications, LLC, a Delaware
     limited liability company and GST Telecom Inc., a Delaware corporation,
     dated September 30, 1998 entitling Worldwide Fiber Networks to revenue of
     [          ]* pursuant to the agreement with GST described as 8(a) above.

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

                                      -2-
<PAGE>

13.  Construction Contract between Worldwide Fiber Networks, Inc. and Kiewit
     Pacific Company dated June 24, 1999.

14.  Construction Contract between Worldwide Fiber Networks, Inc. and Ledcor
     Industries Inc. dated June 22, 1999 (approx. $24,000,000), subject to
     Worldwide Fiber Inc. board approval.

15.  Purchase order with Nortel Networks related to the acquisition of
     telecommunications equipment in the approximate amount of $47,600,000(US)

                                   -3-
<PAGE>

<TABLE>
<CAPTION>
                                SCHEDULE 2.10(c)

                    List of Fiber Sale Agreements and Revenue

                                                                                         Revenue Reflected in
                                                                                             June 30, 1999
                                                 Revenue                                 Financial Statements

<S>                                        <C>                                           <C>
Seattle - Portland (2)
Qwest                                      $[              ]*                            $[              ]*
Fonorola                                    [              ]*                             [              ]*
Nextlink                                    [              ]*                             [              ]*
Nextlink                                    [              ]*                             [              ]*
Nextlink                                    [              ]*                             [              ]*
Worldnet                                    [              ]*                             [              ]*
Toledo                                      [              ]*                             [              ]*
Level 3 - constr                            [              ]*                             [              ]*
Qwest - constr                              [              ]*                             [              ]*
Sprint - constr                             [              ]*                             [              ]*
                                           ------------------
Seattle Ring (2)
Metromedia                                  [              ]*                             [              ]*
Qwest                                       [              ]*                             [              ]*
Summit Cable                                [              ]*                             [              ]*
Level 3                                     [              ]*                             [              ]*
Level 3                                     [              ]*                             [              ]*
                                           ------------------
Portland - Sacramento
GST                                         [              ]*                             [              ]*
Williams                                    [              ]*                             [              ]*
Level 3                                     [              ]*                             [              ]*
FTV                                         [              ]*                             [              ]*
GTE                                         [              ]*                             [              ]*
Gervais                                     [              ]*                             [              ]*
Citizens                                    [              ]*                             [              ]*
ATG                                         [              ]*                             [              ]*
                                           ------------------
Chicago - Denver
Pathnet                                     [              ]*                             [              ]*
                                           ------------------
Vancouver - Seattle
BCT.Telus                                   [              ]*
                                           ------------------

Level 3 Eastern Builds (Buffalo -           [              ]*                             [              ]*
                                           ------------------
Montreal) (1)
BCT.Telus Builds
Edmonton - Toronto(1)                       [              ]*
Eastern Builds                              [              ]*                             [              ]*
                                           ------------------

AT&T Canada (formerly MetroNet)
Eastern Builds - Canada                     [              ]*
Eastern Builds - USA                        [              ]*                             [              ]*
                                           ------------------                            ------------------

TOTAL                                      $   478,812,718                               $   114,307,373
                                           ------------------                            ------------------

</TABLE>
----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

<PAGE>

1    Does not include non-cash consideration received i.e. 24/48 fibers

2    Excludes non-cash sales, i.e. Swaps with Metromedia and GST (LA to Mira
     Mesa and Enron Agreements described in Schedule 2.10)

                                      -2-
<PAGE>

                                SCHEDULE 2.10(d)

                         Changes in Network Description

1.   The additional Central Build Section from Denver, Colorado to Dallas, Texas
     to Houston, Texas to New Orleans, Louisiana with Enron Communications.
     Scheduled for completion in Q2, 2000. Estimated Route Miles - 2,065. (Post
     July 23, 1999.)

2.   The segment from San Diego to Houston to New Orleans to Jacksonville,
     Florida. Estimated Route Miles - 2,265. (Post July 23, 1999.)

<PAGE>

                                SCHEDULE 2.11(d)

                                   Trademarks

1.   WORLDWIDE FIBER and design, application for trademark registration filed in
     the U.S. on August 18, 1999.

2.   WORLDWIDE FIBER, and WORLDWIDE FIBER and design, application for trademark
     registration filed in Canada on April 16, 1999, Application Number:
     1,005,493.

<PAGE>

                            SCHEDULE 2.11 (e) and (f)

                        Third Party Intellectual Property

1.   The Rail Plough License Agreement, dates as at May 31, 1998 by and between
     Ledcor Industries Limited and 786520 Alberta Ltd. as assigned by Ledcor
     Industries Limited to Ledcom Holdings Ltd. (formerly Starfiber
     Communications Ltd.) and assigned by 786520 Alberta Ltd. to Ledcor
     Communications Inc.

2.   Letter to Worldwide Fiber Communications Ltd. from Ledcor Inc. dated as of
     November 27, 1998 regarding Ledcor Inc.'s agreement to cause Ledcom
     Holdings Ltd. to grant to Worldwide Fiber Communications Ltd. a worldwide
     exclusive license for the use of the plow technology.

<PAGE>

                                SCHEDULE 2.15(a)

                                  Encumbrances

1.   Security interests, pledges or other security to be granted as contemplated
     in the senior combined credit facility described as item 2 in Schedule 2.8.

2.   Security granted or to be granted by WFI Entities in connection with
     ordinary course bonding provided for construction projects.

3.   Security interest granted by Worldwide Fiber Communications Ltd. in favor
     of Ledcor Inc., encumbering the shares of Worldwide Fiber Communications
     Ltd. in Ledcom Holdings Ltd., as contemplated in the Ledcom Holdings Ltd.
     unanimous shareholders agreement dated December 1, 1998.

4.   Permitted Encumbrances contemplated in the Ledcor Roll-Up.

5.   Security interest granted by WFI-CN Fibre Inc. in favour of the Canadian
     National Railway Company encumbering the property and assets of WFI-CN
     Fibre Inc. as security for amounts owing pursuant to the license agreement
     among WFI-CN Fibre Inc., Worldwide Fiber Inc. and the Canadian National
     Railway Company dated as of May 28, 1999.

6.   Security interest granted by each of IC Fiber Illinois LLC, IC Fiber
     Kentucky LLC, IC Fiber Tennessee LLC, IC Fiber Mississippi LLC, IC Fiber
     Louisiana LLC, IC Fiber Alabama LLC, IC Fiber Iowa LLC (collectively the
     "IC Fiber LLC's") in favour of the Illinois Central Railroad encumbering
     the property and assets of each of the IC Fiber LLCs as security for
     amounts owing pursuant to license agreements among Worldwide Fiber Inc.,
     the Illinois Central Railroad Company and each of the IC Fiber LLC's,
     respectively all dated as of May 28, 1999.

7.   UCC Filings in the United States and Personal Property Registry filings in
     Canada resulting from conducting business in the ordinary course related to
     equipment, vehicles and similar assets and filings which will be discharged
     as required in connection with the senior debt financing described as item
     2 in Schedule 2.8.

8.   Encumbrances or assessments and liens securing workers' compensation,
     unemployment insurance or other social security obligations and
     governmental charges or levies provided that no such encumbrances,
     assessments, charges or levies would have a Material Adverse Effect.

9.   The reservations, exceptions, limitations, provisos and conditions, if any,
     expressed in any grant from the Crown.

<PAGE>

10.  Undetermined or inchoate liens and charges incidental to the current
     operations of the WFI Entities taken as a whole.

                                      -2-

<PAGE>

                                SCHEDULE 2.15(c)

                            Condemnation Proceedings

1.   The Telecommunications Act (Canada) Part VII Application relating to the
     fiber assets installed by Worldwide Fiber (F.O.T.S.) Ltd. on public rights
     of way in the City.

<PAGE>

                                  SCHEDULE 2.16

                             Employee Benefit Plans

General

1.   Customary compensation arrangements entered into in the ordinary course of
     business, none of which are materially burdensome to the Corporation or the
     WFI Entities.

2.   Severance and termination pay obligations as required by law or pursuant to
     written employment agreements where such obligations are (a) not materially
     greater than required by law or (b) are conditional upon the employee
     complying with specified not compete covenants.

3.   The 1998 Employee Long Term Incentive and Share Award Plan.

Worldwide Fiber Networks, Inc.

1.   Employee 401K plan where employer matches 50% of employee contributions of
     up to 6% of salary.

2.   Humana PPO Health and Dental Insurance and Principal Disability Insurance
     Voluntary Plan 185 (insured by Employers Health Insurance Company).

Worldwide Fiber Inc. - Canadian Operations

1.   The benefits provided pursuant to the terms of the Collective Agreements
     described in Schedule 2.17 requiring a fixed per hour contribution by the
     Employer. Benefits are administered through the applicable labour union.

2.   Life Insurance, Medical and Dental Employee Health Benefit Plan with The
     Great West Life Assurance Company with fixed employer rates through to
     4/1/2000 (corporation and subsidiaries participate as Ledcor affiliates).

3.   RRSP Employer Contribution Plan where employees having two years of service
     with the company are eligible to have employer contribute funds to an RRSP
     Account established with Great West Life Assurance Company, in the name of
     the Employee, in an amount determined at the discretion of management.

Ledcor Communications Inc.

1.   Employee 401K plan where employer matches employee contributions, 50% of
     employee contributions of up to 4% of salary.

2.   Life and Accidental Death and Dismemberment Insurance. Salaried Only.

<PAGE>

     o    Basic Life: Up to $100,000 coverage

     o    Carrier: Paul Revere Life

     o    Accidental Death: Up to $100,000 coverage

     o    LCI: Pays All, Employer premium fixed for 1 year

3.   Health Care

     o    Carrier: Guardian Life Insurance Co.

     o    Medical: PPO covered 90% - 10 deductible: Non-PPO covered 80% - 20
          deductible

     o    Dental: Max $1,500 $25 insured

     o    Vision: In Network $10; Out of Network $40

     o    LCI: Pays all, Employer premium fixed for 1 year

4.   Long Term Disability Group Insurance

     o    Carrier: The Paul Revere Life Insurance Company

     o    LCI: Pays all, Employer premium fixed for 1 year

     o    Coverage: Maximum benefit $5,000 per month

                                      -2-
<PAGE>

                                  SCHEDULE 2.17

                           Labour Relations; Employees

A.   Collective Agreements

1.   Labour unions represent WFI Entity employees pursuant to the following
     Collective Agreements:

     (a)  Quebec - Collective Agreement expiring April 30, 2001 between The
          Association des constructeurs de routes et grands travaux du Quebec
          (ACRGTQ) and The Conseil provincial du Quebec des metier de la
          construction (International) and The Federation des travailleurs du
          Quebec.

     (b)  Manitoba, Saskatchewan - Collective Agreement expiring February 28,
          2001 between Ledcor Communications Ltd. and Construction Workers Union
          (CLAC), Local 152.

     (c)  Ontario - Collective Agreement between Ledcor Communications Ltd. and
          the Christian Labour Association of Canada expiring February 28, 2001.

     (d)  British Columbia and Alberta - Collective agreements having the same
          terms and expiry date as the Ontario Collective Agreement (with
          Christian Labour Association of Canada) have been negotiated but not
          yet ratified.

B.   Employees having a base salary greater than $150,000 US):

     [               ]* (start date: September, 1999)

C.   Employees with Severance Beyond Legal Requirements (ss. 2.17(ii))

     None

D.   Change of Control

     The 1998 ESOP contains change of control automatic vesting provisions
     respecting employee options.

E.   Employees Resigning

     Jerry Tharp of Worldwide Fiber (USA) Inc. will retire his position in
     September 1999 but will continue to provide services to that company
     following retirement. David Love has been appointed his successor.

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

<PAGE>

                                  SCHEDULE 2.18

                               Litigation, Orders

1.   Application by Ledcor Industries Limited, on its own behalf and on behalf
     of Worldwide Fiber (F.O.T.S.) Ltd. under Part VII of the Telecommunications
     Act (Canada) respecting terms of access to City of Vancouver public
     property for the purposes of installing fiber optic systems.

2.   California Public Utilities Commission stop work order related to a portion
     of the Portland - Los Angeles build pending an environmental review
     process.

3.   Contractor claim for construction extras on Seattle-Portland route of
     approximately $500,000 (US) (no proceedings instituted).

<PAGE>

                                  SCHEDULE 2.19

                              Compliance With Laws

1.   Licenses or registrations to be obtained by the WFI Entity acquiring Fiber
     Assets pursuant to the Ledcor Roll-Up Agreement described in Schedule
     2.20(a).

<PAGE>

                                SCHEDULE 2.20(a)

                     Compliance with Telecommunications Laws

Schedule 2.20(a) - Notices Required

1.   Obtaining :

     (a)  an Industry Canada International Submarine Cable Landing License;

     (b)  registration as a telecommunications common carrier under the
          Telecommunications Act (Canada) and the rules and regulations
          thereunder;

     (c)  Class A License for Provision of Basic International
          Telecommunications Services; and

     (d)  Consent from the State of Washington to transfer of aquatic license
          for undersea cable (Victoria to Seattle) (or, alternatively having
          Ledcor grant an IRU for the useful life of the fiber if consents are
          not readily available)

     by the WFI Entity acquiring fiber assets pursuant to the Ledcor Roll-up in
     connection with acquisition of the Fiber Assets, as defined in the Ledcor
     Roll-Up Agreement.

<PAGE>

                                SCHEDULE 2.20(e)

                        Application of Communications Act

1.   Tariff FCC No. 1 filed by Worldwide Fiber Networks, Inc. effective August
     4, 1999 for domestic interstate dedicated transport service, pursuant to
     Communications Act, 1934.

2.   Further FCC filings required in connection with implementation of the
     Corporation's business plan to sell telecommunications services.

3.   Application for Cable Landing License filed with the Federal Communications
     Commission on August 4, 1999 in relation to the Hibernia Project.

<PAGE>

                                SCHEDULE 2.22(a)

                              Licenses and Permits

Schedule 2.22(a) - Part I

[

                                                                       ]*

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

<PAGE>

[

                                                                         ]*

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

                                      -2-
<PAGE>

[

                                                                      ]*

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

                                      -3-
<PAGE>

<TABLE>
<CAPTION>

                         WORLDWIDE FIBER NETWORKS, INC.

                            U.S. CERTIFICATION CHART
                                     8/31/99

<S>                                   <C>                                 <C>
STATES BY ORDER OF                    DATE FILED                          DATE CERTIFICATION GRANTED/ORDER
IMPORTANCE/BUILD                                                          NO./DOCKET NO.
OUT
______________________
LENGTH OF TIME REQUIRED TO OBTAIN
CLEC STATUS3

WASHINGTON                            Worldwide Fiber filed for           Granted
______________________                registration as a                   Order Authorizing Registration,
30 Days by statute                    telecommunications provider and     Granting Petition for Competitive
                                      petitioned for classification as    Classification and Approving
                                      a competitive provider - June 16,   Price List - July 14, 1999,
                                      1999                                Docket No. UT-990858.
                                      Foreign qualifications filed with
                                      original Application

OREGON                                Worldwide Fiber -                   Granted
______________________                Interexchange (Long Distance)       Interexchange Authority
N/A - Regulatory Burden not such      Authority - April 27, 1999          June 8, 1999.  Order No. 99-355,
that local authority should be        Local Authority - April 27, 1999    Docket No. CP 649
stayed.                               Foreign qualifications filed with   Local Authority - August 4,
                                      original Application                1999.  Order No. 99-460
                                                                          Docket No. CP 648

CALIFORNIA                            Transfer of the Certificate         Pending
______________________                from Pacific Fiber Link, L.L.C.     Number:  A99-06-015
4-6 months                            to Worldwide Fiber Networks, Inc.
                                      - June 14, 1999
                                      Foreign qualifications filed with
                                      original Application

COLORADO                              Worldwide Fiber - Local and         Granted
                                      Interexchange Author-               August 18, 1999
----------

3    This is the minimum amount of notice I require to obtain the necessary
     authority before Worldwide may offer local telecommunications services in
     each state.

                                      -4-
<PAGE>

______________________                ity - June 25, 1999                 Decision No. C99-904
45-60 Days                            25, 1999                            Docket No. 99A-332T
                                      (The authority to operate as a
                                      local carrier was withdrawn, but we are
                                      still certified as a "local exchange
                                      carrier", just without the authority or
                                      obligation to offer local service) Foreign
                                      company registration requirements - July
                                      9, 1999

NEBRASKA                              Worldwide Fiber - Interex-          Granted
______________________                change Authority - July 2,          August 10, 1999
90 Days on average -                  1999                                Application No. C-2078
if statewide                          Foreign company registra-
authority is requested may            tion requirements - July 12, 1999
take longer because rural ILECs will
protest application

IOWA                                  Worldwide Fiber -  Local            Pending
______________________                Application and Interexchange       Docket No. TCU-99-23
N/A                                   Notification - July 9, 1999
                                      Foreign company registration
                                      requirements - July 13, 1999

ILLINOIS                              Worldwide Fiber - Interexchange     Pending
___________________________120 Days   Authority - July 6, 1999            Docket No. 99-0372
                                      Foreign company registration        Hearing held August 12, 1999.
                                      requirements - July 23, 1999

KENTUCKY                              Worldwide Fiber - Local and          Granted
______________________                Interexchange Authority - July      August 13, 1999
N/A - CLECs receive statewide         13, 1999
construction exemption.               Foreign company registration
                                      requirements - August 26, 1999

                                      -5-
<PAGE>

TENNESSEE                             Worldwide Fiber -Interexchange      Pending
______________________                Authority - July 30, 1999           Docket No.  99-00556
60 Days                               Foreign qualifications filed with
                                      original Application

MISSISSIPPI                           Worldwide Fiber -Interexchange      Pending
______________________                Authority - August 13, 1999         Docket No. 1999-UA-614
30-45 Days                            Foreign qualifications filed with   TC123174000
                                      original Application

LOUISIANA                             Worldwide Fiber -Interexchange      Pending
______________________                Authority - August 6, 1999
180 Days                              Foreign qualifications filed with
                                      original Application

MISSOURI                              Worldwide Fiber -Interexchange      Pending
______________________                Authority - August 27, 1999
30-45 Days                            Foreign qualifications to be
                                      filed with original Application

NEVADA                                Worldwide Fiber -Interexchange      Pending
______________________                Authority - August 13, 1999
45-60 Days

UTAH                                  Worldwide Fiber -Interexchange      Pending
______________________                Authority -
2-3 Months                            August 19, 1999
                                      Foreign company registration
                                      requirements - August 26, 1999

VIRGINIA                              Worldwide Fiber -Interexchange      Pending
______________________                Authority - August 18, 1999
3-6 Months

NORTH CAROLINA                        Worldwide Fiber -Interexchange      Pending
______________________                Authority - August 27, 1999
3-6 Months                            Foreign qualifications to be
                                      filed with original Application

                                      -6-
<PAGE>

MINNESOTA                             Worldwide Fiber -Interexchange      Pending
______________________                Authority - August 26, 1999
6 Weeks - minimum                     Foreign qualifications to be
                                      filed with original Application

MICHIGAN                              Worldwide Fiber -Interexchange      Pending
______________________                Authority - August 26, 1999
180 Days by Statute                   Foreign qualifications to be
                                      filed with original Application

WISCONSIN
----------------------
30-60 Days

INDIANA
----------------------
3-6 Months

SOUTH CAROLINA
----------------------
120 Days by Statute

ARIZONA                               Worldwide Fiber - Interexchange     Pending
______________________                Authority - August 30, 1999
6-9 Months

TEXAS
----------------------
60 Days

NEW MEXICO
----------------------
3-5 Months

FLORIDA
----------------------
10-12 Weeks

NEW YORK
----------------------
90 Days by Statute

MASSACHUSETTS
----------------------
30 Days

GEORGIA
----------------------
120 Days by Statute

                                      -7-
<PAGE>

ALABAMA
----------------------
60 Days

PENNSYLVANIA
----------------------
90 Days

CONNECTICUT
----------------------
10 Weeks

RHODE ISLAND
----------------------
30 Days from receipt of completed
filing

</TABLE>

                                      -8-
<PAGE>

HIBERNIA PROJECT                               APPROVAL TIME LINE

                                SCHEDULE 2.22(a)
                                     Part 2

[

                                                                           ]*

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

<PAGE>
HIBERNIA PROJECT                               APPROVAL TIME LINE

[

                                                                  ]*

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

                                      -2-
<PAGE>
HIBERNIA PROJECT                               APPROVAL TIME LINE

[

                                                                    ]*

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

                                      -3-
<PAGE>
HIBERNIA PROJECT                               APPROVAL TIME LINE

[

                                                                     ]*

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

                                      -4-
<PAGE>
HIBERNIA PROJECT                               APPROVAL TIME LINE

[

                                                                   ]*
----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

                                      -5-
<PAGE>
HIBERNIA PROJECT                               APPROVAL TIME LINE

[

                                                                        ]*
----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

                                      -6-
<PAGE>
HIBERNIA PROJECT                               APPROVAL TIME LINE

[

                                                                    ]*
----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to request for confidential treatment under Rule 406.

                                      -7-
<PAGE>

                                SCHEDULE 2.22(b)

                           Exceptions to Access Rights

1.   Access Rights have not yet been finalized for the following route segments:

     (a)  Washington, D.C. to Tallahasee

     (b)  Atlanta to Miami

     (c)  Memphis to Atlanta

     (d)  San Diego to Houston

     (e)  New Orleans to Jacksonville, Florida

     (f)  Denver to Sacramento

     (g)  Canadian Intra-City networks

2.   Access Rights are not always obtained through a direct contractual
     relationship with the landholder and are instead provided through Swap
     arrangements or obtained from third parties such as Railroads, utilities
     who, to the Corporation's knowledge, have previously been granted such
     rights or have covenanted with the Corporation to obtain same.

3.   Construction and crossing permits and licenses to be obtained in the course
     of construction.

<PAGE>

                                SCHEDULE 2.24(a)

                              Related Transactions

1.   Purchase of regeneration buildings from Ledcor Industries Limited on the
     (a) Portland, Oregon to Sacramento, California route and (b) on the Omaha,
     Nebraska to Chicago, Illinois route in 1999.

2.   Construction Contract between Worldwide Fiber Networks, Inc. and Ledcor
     Industries Inc. dated June 22, 1999 (approximately $24,000,000 (US),
     subject to Worldwide Fiber Inc. board approval.

3.   Utilization of Ledcor Industries Limited personnel as consultants in
     connection with cable landing stations (proposed).

4.   Transactions between WFI Entities.

5.   Sublease of Nashua Drive, Mississauga premises and West Hastings Street,
     Vancouver premises from Ledcor group.

6.   Shared Assets: shared administrative support services including accounting,
     finance, human resources, information technology, plant and facilities
     (including associated personnel, overhead and licenses) provided by Ledcor
     or its subsidiaries and used by the Corporation or its Subsidiaries.

                                      -2-
<PAGE>

                                  SCHEDULE 2.26

                                      Taxes

1.   In 1999, Worldwide Fiber (USA) Inc. has applied for an extension of time
     within which to file its tax return; the estimated tax amount has been
     remitted.

2.   The following WFI Entities are registered under Division V of Part IX of
     the Excise Tax Act: Ledcor Communications Ltd., Ledcor Cayer Inc. and
     Worldwide Fiber Inc.

3.   Section 85 elections under The Income Tax Act (Canada) in connection with
     the transfer of certain fiber assets from Ledcor Industries Limited to the
     Corporation or its Subsidiaries.

<PAGE>

                                  SCHEDULE 2.29

                                    Insurance

Insured: In all policies listed below, the named insured is Ledcor Industries
         Limited and/or Ledcor Industries, Inc., however, they have been
         extended to include Worldwide Fiber Inc., and its subsidiaries.

<TABLE>
<CAPTION>

Policy Description and No.                    Carrier                                 Amount of Coverage
--------------------------                    -------                                 ------------------

<S>                                           <C>                                     <C>
1.       "All Risks" Property                 American Home Assurance Company         $25,000,000 with various
         Policy No. RSL160052                                                         sublimits

2.       "All Risks" Course of Construction   American Home Assurance Company         $25,000,000 with various
         Policy No. RSL160053                                                         sublimits

3.       Commercial General Liability         American Home Assurance Company         U.S. $5,000,000
         Policy No. RMGLA2505702

4.       Umbrella Liability                   American Home Assurance Company         U.S. $50,000,000
         Policy No. BE3585144

5.       1st Excess Liability                 Allianz Insurance Company of Canada     U.S. $50,000,000
         Policy No. XXK-000-7464-6693

6.       2nd Excess Liability                 CIGNA Insurance Company of Canada       U.S. $30,000,000
         Policy No. XCP397038

7.       3rd Excess Liability                 Elliott Special Risks Ltd. on behalf    U.S. $20,000,000
         Policy No. IE50565                   of Scottish & York Insurance Co.
                                              Limited, and Sovereign General
                                              Insurance Company

8.       4th Excess Liability                 Chubb Insurance Company of Canada       U.S. $40,000,000
         Policy No. 7972-65-32

9.       5th Excess Liability                 Liberty Mutual Insurance Company        U.S. $25,000,000
         Policy No. LQ1-B71-070798-028

10.      6th Excess Liability                 Reliance Insurance Company              U.S. $25,000,000
         Policy No. 7301338

11.      7th Excess Liability                 Royal & Sun Alliance Ins. Co. of        U.S. $10,000,000
         Policy No. 60335000                  Canada

12.      Director's & Officer's Liability     Encon Insurance Managers Inc. on        U.S. $20,000,000 each Loss
         Policy No. DO-027632                 behalf of Commercial Union Assurance    U.S. $20,000,000 each
                                              Company of Canada, Continental          Policy Year
                                              Casualty Company, and Non-Marine
                                              Underwriters at Lloyd's

<PAGE>
Policy Description and No.                    Carrier                                 Amount of Coverage
--------------------------                    -------                                 ------------------

13.      Contractor's Professional Liability  Encon Insurance Managers Inc. on        $10,000,000 per claim
         Policy No. CON307242                 behalf of Continental Casualty          $10,000,000 per policy
                                              Company, The Royal Insurance Company    period
                                              of Canada, and Non-Marine
                                              Underwriters at Lloyd's under
                                              Contract No. ENC5-97

14.      Contractor's Pollution Liability     Commerce & Industry                     $10,000,000 per claim
         Policy No. GCPO7619205                                                       $10,000,000 aggregate

15.      Comprehensive Crime                  The Guarantee Company of North America  $500,000 Employee Dishonesty
         Policy No. 887023                                                            $100,000 Depositor's Forgery

16.      All Other States (Excluding          The Insurance Company of the State of   $1,000,000 each
         California) Worker's Compensation    Pennsylvania                            accident/each employee
         and Employer's Liability
         Policy No. WC 112 98 99

17.      California Worker's Compensation     The Insurance Company of the State of   $1,000,000 each accident/
         and Employer's Liability             Pennsylvania                            each employee
         Policy No. WC 112 99 00

18.      Non-Owned Aircraft Liability         Canadian Aviation Insurance Managers    $50,000,000
         Policy No. 400AC-5846                Ltd. on behalf of St. Paul Fire and
                                              Marine Insurance Company

19.      Standard Automobile SPF No. 1,       American Home Assurance Company         $5,000,000 Third Party
         Ontario Automobile OAP 1                                                     Liability
         Policy No. RMBA3769485

20.      Standard U.S. Automobile -           American Home Assurance Company         $5,000,000 Third Party
         Guaranteed Cost                                                              Liability
         Policy No. CA 382-98-06

21.      Railroad Protective Liability        National Union Fire Insurance Company   U.S. $2,000,000 each
         Policy No. GL 933-02-53              of Pittsburgh, PA                       occurrence
                                                                                      U.S. $6,000,000 aggregate

22.      "All Risks" Property                 American Home Assurance Company         $25,000,000 with various
         Policy No. 7722620                                                           sublimits

23.      Composite Marine & Construction      T.B.A.                                  Property--Full replacement
         Package Policy                                                               cost of insured property
         Policy No. T.B.A.                                                            subject to various internal
                                                                                      sublimits
                                                                                      Business Interruption--
                                                                                      (pound)200,000,000 subject
                                                                                      to various internal sublimits
                                                                                      General Liability--
                                                                                      (pound)250,000,000
                                                                                      subject to various sublimits
                                                                                      UK Employer's Liability--
                                                                                      (pound)145,000,000

</TABLE>
                                      -2-
<PAGE>

                                  SCHEDULE 2.32

                                  Real Property

United States Leases

1.   Worldwide Fiber Networks Inc.

     (a)  One year lease dated March 1, 1999 with Brick Associates for premises
          at 722 Avenue D, Suite C, Snohomish, Washington, USA 98290

     (b)  Three year lease dated September 1, 1998 with Eastridge Business Park
          for premises at 11719 NE 95th Street, Suite A Vancouver, Washington,
          USA 98682

     (c)  One year lease dated May 1, 1999 with Exports for premises at 215
          Marine Drive, Suite G2, Blaine, Washington, USA 98230

     (d)  Five year lease dated March 1, 1999 with Melvin Mark Brokerage for
          premises at 707 SW Washington, Suite 107C, Portland, Oregon, USA 97205

     (e)  Three year lease dated June 1, 1999 with One Park Center for premises
          at 1333 West 120th Avenue, Suite 116, Westminster, Colorado, USA 80234

     (f)  Three year lease dated June 1, 1999 with One Park Center for premises
          at 1333 West 120th Avenue, Suite 122, Westminster, Colorado, USA 80234

     (g)  Three year lease dated June 1, 1999 with One Park Center for premises
          at 1333 West 120th Avenue, Suite 216 Westminster, Colorado, USA 80234

     (h)  Three year lease dated April 1, 1998 with Pavilion Court for premises
          at 1400 122nd Avenue, Suite 130, Westminster, Colorado, USA 80234

     (i)  Temporary one year lease dated September 1, 1998 - August 31, 1999
          with Robbie Cattanach Trucking for premises at 7194 Bridge Street,
          Anderson, California, USA 96007

     (j)  Monthly lease dated March 1, 1999 with Smoots for premises at 721
          Avenue D, Suite 201, Snohomish, Washington, USA 98290

     (k)  Monthly lease dated March 1, 1999 with Smoots for premises at 721
          Avenue D, Suite 202, Snohomish, Washington, USA 98290

     (l)  Monthly lease dated March 1, 1999 with Smoots for premises at 721
          Avenue D, Suite 203, Snohomish, Washington, USA 98290

<PAGE>

     (m)  Monthly lease dated March 1, 1999 with Smoots for premises at 721
          Avenue D, Suite 204, Snohomish, Washington, USA 98290

     (n)  One year lease dated March 1, 1999 with S & R Rentals for premises at
          719 SW Goodwin Street, Ankeny, Iowa, USA 50021

     (o)  Seven month lease dated July 1, 1999 with Rim Rock Corp. for premises
          at 500 X 700 foot slab, 4 acres, South and East of Mill Yard

     (p)  Monthly lease dated August 15, 1998 with Airport Road Industrial Park
          for premises at 29394 Airport Road, Suite B, Eugene, Oregon, USA 97402

     (q)  Six month lease dated June 16, 1998 with Mario Addiego for premises at
          2258 North Street, Anderson, California, USA 96007

     (r)  Monthly lease dated December 1, 1998 with Durbin/Blloomberg for
          premises at section 26, T 27, Rge 05, Snohomish County, Washington,
          USA

2.   Canadian Real Property

     (a)  Lands purchased by Ledcor Communications Ltd. for "shelter" sites
          along the Canadian F.O.T.S. route, comprising approximately five
          parcels having purchase prices ranging from $20,000 (Cdn) to $105,000
          (US).

3.   Canadian Leases

     (a)  Five year lease dated Feb. 19, 1998, between Ledcor Cayer Inc. and
          Construction Cayer/Jestin Immobilieres Procay Inc. for premises in
          Romoulaod, P.Q.

     (b)  Sublease from Ledcor Properties Inc. to Ledcor Communications Ltd. for
          premises at 3930 Nashua Drive, Mississauga [no fixed term]

     (c)  Temporary trailer on site location leases (3-4 per year) in connection
          with construction operations, not exceeding $10,000 per annum each.

     (d)  Lease of Suite 1520 and 14th Floor premises at 1066 West Hastings
          Street, Vancouver, British Columbia.

                                      -2-
<PAGE>

                                   SCHEDULE 3

                        U.S. Representations & Warranties

     If an Investor falls under one of the categories listed in Section 3(b) of
the Preferred Share Purchase Agreement, by executing the Preferred Share
Purchase Agreement, such Investor, on its own behalf and, if applicable on
behalf of others for whom it is contracting, represents, warrants and
acknowledges to the Corporation the following:

     (a)  Such Investor is acquiring the Series A Non-Voting Preferred Shares
          for its own account, for investment purposes only and not with a view
          to any resale, distribution or other disposition of the Series A
          Non-Voting Preferred Shares in violation of the United States
          securities laws.

     (b)  If such Investor decides to offer, sell or otherwise transfer any of
          the Series A Non-Voting Preferred Shares, it will not offer, sell or
          otherwise transfer any of such Series A Non-Voting Preferred 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.

     (c)  Such Investor understands and agrees that there may be material tax
          consequences to the Investor of an acquisition or disposition of the
          Series A Non-Voting Preferred Shares and that, except as expressly set
          forth in this Agreement, the Corporation gives no opinion and makes no
          representation with respect to the tax consequences to the Investor
          under United States, state, local or foreign tax law of the Investor's
          acquisition or disposition of such securities.

<PAGE>

                                  SCHEDULE 5.1

                                 Use of Proceeds

To fund the repurchase of 45,000,000 Series C Redeemable Preferred
Shares of the Corporation                                           $45,000,000

To fund the construction of the Hibernia project as defined
in Section 2.10(e) of the Purchase Agreement and general
corporate purposes related to the Hibernia project                 $300,000,000
                                                                   ------------

                                                                   $345,000,000
                                                                   ============SHAREHOLDERS AGREEMENT

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page

SECTION 1.   Certain Definitions...............................................1
SECTION 2.   Methodology for Calculations......................................7
SECTION 3.   Limitations on Purchases and Sales of Shares by Shareholders......8
SECTION 4.   Rights of First Offer.............................................9
SECTION 5.   Tag-Along Rights.................................................12
SECTION 6.   Bring-Along Rights...............................................14
SECTION 7.   Preemptive Rights................................................15
SECTION 8.   Corporate Governance.............................................17
SECTION 9.   Major Transactions...............................................22
SECTION 10.  Liquidity Rights.................................................26
SECTION 11.  Representations and Warranties...................................28
SECTION 12.  Certain Covenants................................................29
SECTION 13.  [Intentionally omitted]..........................................39
SECTION 14.  Reservation of Common Shares; Conversion.........................39
SECTION 15.  Confidentiality..................................................39
SECTION 16.  Specific Performance; Injunction.................................40
SECTION 17.  No Inconsistent Agreements.......................................41
SECTION 18.  Further Assurances...............................................41
SECTION 19.  Duration of Agreement............................................41
SECTION 20.  Legends..........................................................41
SECTION 21.  Contractual Management Rights....................................42
SECTION 22.  Severability.....................................................42
SECTION 23.  Governing Law; Waiver of Jury Trial..............................43
SECTION 24.  Successors and Assigns...........................................43
SECTION 25.  Notices..........................................................44
SECTION 26.  Amendments.......................................................48
SECTION 27.  Headings.........................................................48
SECTION 29.  Entire Agreement.................................................49
SECTION 30.  Counterparts.....................................................49
SECTION 31.  No Partnership...................................................49
SECTION 32.  Ledcor Assurances................................................49

                                      -i-

<PAGE>

Schedule 1.15 - Key Shareholders

Schedule 3(a)(i) -Permitted Assignees of WFH

Schedule 11(b)(i) - Security holdings of each Shareholder

Schedule 11(b)(ii) -Agreements related to security holdings of each Shareholder

Schedule 12.16 - Ledcor Regulatory Matters

                                      -ii-

<PAGE>

                             SHAREHOLDERS AGREEMENT

     This SHAREHOLDERS AGREEMENT (the "Agreement"), dated as of September 9,
1999, by and among WORLDWIDE FIBER INC., a corporation continued under the laws
of Canada (the "Corporation"), DWF SRL, a Barbados company ("DLJ"), GS CAPITAL
PARTNERS III, L.P., a Delaware limited partnership ("GSCP") (signatory hereto
solely for purposes of Section 8), GSCP3 WWF (Barbados) SRL, a Barbados company,
WWF (Barbados) SRL, a Barbados company, each of which is an affiliate of The
Goldman Sachs Group, Inc. (collectively, with GSCP, the "GSCP Parties"),
PROVIDENCE EQUITY FIBER, L.P., a Delaware limited partnership, ("Providence"),
TYCO GROUP S.a.r.l., a Luxembourg corporation ("Tyco") (collectively with DLJ,
the GSCP Parties and Providence, the "Investors") WORLDWIDE FIBER HOLDINGS LTD.,
an Alberta corporation ("WFH"), LEDCOR INC., an Alberta corporation ("Ledcor")
(signatory hereto solely for purposes of the Sections specified in Section 32),
and the signatories listed on Schedule 1.15 hereto.

                              W I T N E S S E T H:

     WHEREAS, the Corporation and the Investors are parties to that certain
Preferred Share Purchase Agreement, dated as of September 7, 1999 (the "Purchase
Agreement"), pursuant to which the Corporation has issued to the Investors, and
the Investors have purchased from the Corporation, shares of a newly created
series of Preferred Shares (the "Series A Non-Voting Preferred Shares"); and

     WHEREAS, the Purchase Agreement contemplates that the parties hereto will
enter into this Shareholders Agreement and the parties hereto deem it to be in
their best interests to establish and set forth their agreement with respect to
certain rights and obligations associated with ownership of Shares (as defined
below).

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and obligations hereinafter set forth, the parties hereto hereby agree as
follows:

     SECTION 1. Certain Definitions. As used herein, the following terms shall
have the following meanings (capitalized terms used herein and not otherwise
defined herein shall have the meanings assigned to such terms in the Purchase
Agreement):

     1.1. Affiliate shall mean (i) with respect to any Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person, or (ii) with respect to any
individual, shall also mean the spouse, child (including a stepchild or an
adopted child), grandchildren, parent, brother, sister or other

<PAGE>

                                      -2-

bona fide estate planning recipient thereof or any spouse of any of the
foregoing, and each trust created for the exclusive benefit of any one or more
of them. Notwithstanding the foregoing, neither the Corporation nor any Person
controlled by the Corporation shall be deemed to be an Affiliate of any
Shareholder for purposes of this Agreement.

     1.2. Board shall mean the Board of Directors of the Corporation.

     1.3. Cause shall mean:

     (a) if the Senior Officer is convicted of a criminal offense involving
fraud or dishonesty; or

     (b) if the Senior Officer takes any action or omits to take any action
which constitutes gross negligence or willful misconduct which is likely to
bring the reputation of the Corporation into disrepute.

     1.4. Common Share Equivalents shall mean all options, warrants and other
securities and obligations convertible into, or exchangeable or exercisable for,
at any time or upon the occurrence of any event or contingency and without
regard to any vesting or other conditions to which such securities may be
subject, Common Shares.

     1.5. Common Shares shall mean any common shares of the Corporation of any
class or series whether now or hereafter authorized, including without
limitation the Corporation's Class A Non-Voting Common Shares, Class B
Subordinate Voting Shares and Class C Multiple Voting Common Shares, and any
shares into which such common shares may be exchanged, reclassified,
recapitalized, converted or otherwise.

     1.6. Competitor shall mean (i) WFI Competitor and (ii) Tyco Competitor.

     (a) WFI Competitor means any Person deriving 25% or more of its annual
consolidated revenues from the construction, development, operation or sale of
terrestrial or underwater fiber optic networks or bandwidth fiber optic
communication capacity. WFI Competitors currently include, without limitation,
(i) Qwest Communications International Inc., (ii) Williams Communications Group
Inc., (iii) IXC Communications Inc., (iv) Global Crossing Ltd., (v) MCI Worldcom
Inc., and (vi) Level 3 Communications Inc. This list does not preclude later
inclusion of other Persons whose nature and scope of business would qualify them
for inclusion under this definition.

     (b) Tyco Competitor means any Person in the market of Tyco Submarine
Systems Ltd. ("TSSL") that contends for material market share against TSSL in
TSSL's Business (as defined below). A Tyco Competitor further means any Person
offering alone or to-

<PAGE>

                                      -3-

gether with any other Person, to supply Systems which generate annual
consolidated revenues in excess of (a) 15% of such Person's consolidated
revenues, or (b) $50 million dollars. Tyco Competitors shall mean, as of the
date hereof, Alcatel Submarine Networks, KDD Submarine Cable Systems, and
Pirelli Submarine Systems. This list does not preclude later inclusion of other
Persons whose nature and scope of business would qualify them for inclusion
under this definition. "TSSL's Business" shall mean the design, manufacture or
sale of commercial undersea fiber optic telecommunication Systems (where such
Systems may be inclusive of segments or products supplied by vendors or other
undersea cable system suppliers), as conducted by TSSL or by TSSL through or
with the Operating Companies ("Operating Companies" means collectively, Trans
Oceanic Cable Ship Co., Coastal Cable Ship Co., The Rochester Corporation, and
Tyco Printed Circuit Board Group). "Systems" as used herein includes, in whole
or part: (1) undersea fiber optic cables, branching units and signal
amplification units; (2) land-based terminal equipment typically associated with
undersea fiber optic cable systems (e.g. power, maintenance and supervisory,
signal conditioning, multiplexing, and network protection equipment); (3)
terrestrial-based cable crossings between undersea fiber optic cables which are
a part of a larger undersea telecommunication systems ("Cable Crossings"); and
(4) terrestrial-based backhauls which are attendant to such undersea
telecommunication systems ("Backhauls").

     1.7. Dollar, US$ and $ shall mean, unless otherwise indicated, U.S.
dollars, and the symbol C$ shall mean Canadian dollars.

     1.8. Fair Market Value of Shares shall mean, for purposes of Section 10,
the fair market value of each Series A Non-Voting Preferred Share, Series B
Subordinate Voting Preferred Share (a "Series B Voting Preferred Share") or
other Share of the Corporation as determined, at the Corporation's expense, by
an appraisal firm or investment bank of national standing experienced in the
valuation of such securities ("Valuation Firm") selected in good faith by an
Investor making a Section 10 Offer and approved by the Board, which approval
shall not be unreasonably withheld or delayed. For purposes of Section 10 the
determination of Fair Market Value of each Series A Non-Voting Preferred Share,
Series B Voting Preferred Share or other Share shall be based on the value that
a willing buyer with knowledge of all relevant facts would pay a willing seller
for all the outstanding equity securities of the Corporation in connection with
an auction of the Corporation as a going concern assuming bidders are prepared
to pay a control premium and without any discount for lesser voting rights, lack
of liquidity, lack of control, minority holder status or similar factors. The
Valuation shall be determined by the Valuation Firm as soon as practicable but
in any event not later than 60 days following the date of the appointment of the
Valuation Firm. If the Board has not approved a Valuation Firm within 15 days of
the proposal of such Valuation Firm by the relevant Investors hereunder, then
(without prejudice to the Investors' other rights and remedies) such
Investors(s) may request the President of the American Arbitration Association
to ap-

<PAGE>

                                      -4-

point a Valuation Firm, which will then be the Valuation Firm for the
transaction in question. The Corporation shall furnish to the Valuation Firm all
reasonably available information requested by the Valuation Firm. The fair
market value established by the Valuation Firm (or by the written agreement of
all parties to the transaction) shall be final and binding with respect to each
Section 10 Offer.

     1.9. Financial Investors shall mean each of (i) DLJ, (ii) the GSCP Parties
and (iii) Providence, collectively.

     1.10. Group shall mean two or more Persons who agree to act together for
the purpose of acquiring, holding, voting or disposing of Shares.

     1.11. In-The-Money Common Share Equivalents shall mean, at any time, any
Common Share Equivalents as to which the effective price per Common Share
issuable upon conversion, exchange or exercise of such Common Share Equivalents
(determined by dividing (A) the sum of (x) the aggregate purchase price paid in
respect of such Common Share Equivalents plus (y) the aggregate amount payable
upon conversion, exchange or exercise of such Common Share Equivalents in order
to issue all Common Shares issuable pursuant to such Common Share Equivalents by
(B) the number of Common Shares issuable upon the conversion, exchange or
exercise of such Common Share Equivalents) is equal to or less than the then
fair market value per Common Share as determined in good faith by the Board,
provided that the Series A Non-Voting Preferred Shares shall for all purposes be
deemed In-The-Money Common Share Equivalents.

     1.12. Initial Purchase Price shall mean US$38.909 per Share (as equitably
adjusted to reflect any stock split, stock dividend, combination,
reorganization, recapitalization, reclassification or other similar event
involving Common Shares).

     1.13. Investor Shares shall mean the Shares issued by the Corporation to
the Investors under the Purchase Agreement, by conversion or otherwise.

     1.14. IPO shall mean sale of Shares by the Corporation pursuant to a bona
fide underwritten public offering made pursuant to (a) a final prospectus (for
which a receipt or receipts have been obtained) under Canadian provincial
securities laws ("Canadian Securities Laws") or (b) an effective registration
statement filed under the United States Securities Act of 1933, as amended (the
"Securities Act," collectively with the Canadian Securities Laws, the
"Securities Laws").

     1.15. Key Shareholders shall mean and include any person who is (i) a
holder of Shares (as defined below), and (ii) is (x) a director (other than an
Investor Designee), or (y) a Senior Officer or (z) an employee or consultant of
the Corporation or a Subsidiary, who ac-

<PAGE>

                                      -5-

quires from the Corporation at least one-half of one percent of Shares in the
aggregate of the then outstanding Shares (on either a primary or fully diluted
basis).

     1.16. Ledcorshall mean Ledcor Inc., a corporation incorporated under the
laws of Alberta.

     1.17. Ledcor Entitiesshall mean Ledcor Inc. and each of its Subsidiaries,
collectively, except for those entities which are defined as WFI Entities in the
Purchase Agreement.

     1.18. Ledcor Roll-Up Agreement shall mean the amended and restated share
purchase agreement entered into on September 7, 1999 among Ledcor Industries
Limited, Ledcor Industries Inc. and the Corporation.

     1.19. Material Investor shall mean, (a) any Investor and (b) any transferee
of Shares from an Investor or Material Investor that, together with its
Affiliates, holds at least 5% of the outstanding Investor Shares.

     1.20. Minority Roll-Up Agreements shall mean: (a) the unanimous shareholder
agreement made as of May 28, 1999 between Worldwide Fiber Networks Ltd.,
Canadian National Railway Company and WFI-CN Fibre Inc., (b) the limited
liability company agreement of Worldwide Fiber IC LLC effective as of May 28,
1999 between Worldwide Fiber IC Holdings, Inc. and IC Fiber Holding Inc. and (c)
the shareholders agreement dated December 31, 1998 between the Corporation,
Worldwide Fiber Networks Ltd., Ledcor Industries Inc., Worldwide Fiber (USA),
Inc. (formerly known as Pacific Fiber Link, Inc.), Mi-Tech Communications, LLC,
Ledcor and Michels Pipeline Construction, Inc.

     1.21. Minority Roll-Up Transaction shall mean the issuance by the
Corporation of Common Shares pursuant to any of the Minority Roll-Up Agreements
(or any transactions or series of related transactions with similar effect).

     1.22. National standing all references herein to an investment banking
firm, appraisal or accounting firm of national standing shall mean of national
standing in the United States.

     1.23. Other Shareholders shall mean, in connection with any transaction
involving a Selling Shareholder, the Shareholders other than the Selling
Shareholder.

     1.24. Person shall mean any individual, corporation, limited liability
company, limited or general partnership, joint venture, association, joint-stock
company, trust,

<PAGE>

                                      -6-

unincorporated organization, other entity or government or any agency or
political subdivisions thereof.

     1.25. Preferred Shares shall mean the Corporation's Series A Non Voting
Preferred Shares or Series B Voting Preferred Shares.

     1.26. Private Sale shall mean a Sale that is not a Public Sale.

     1.27. Public Sale shall mean a Sale (i) pursuant to a bona fide
underwritten public offering pursuant to (a) a final prospectus (for which a
receipt or receipts have been obtained) under Canadian Securities Laws or (b) an
effective registration statement filed under the United States Securities Act of
1933, as amended (the "Securities Act," collectively with the Canadian
Securities Laws, the "Securities Laws"), or (ii) pursuant to Rule 144 under the
Securities Act.

     1.28. Qualified IPO shall mean a bona fide underwritten public offering of
Common Shares in a Public Sale pursuant to a final prospectus (for which a
receipt or receipts have been obtained) and/or an effective registration
statement, as the case may be, under the Securities Laws (i) resulting in at
least $150,000,000 of gross aggregate proceeds to the Corporation and any
Selling Shareholders before deducting underwriting discounts and commissions and
offering expenses, (ii) the gross offering price per share of which is at least
300% of the per share price (the "Adjusted Initial Per Share Price") obtained by
dividing US$345,000,000 by the number of Series A Non-Voting Preferred Shares,
Common Shares or Common Share Equivalents issued by the Corporation pursuant to
Sections 1.1 and 1.4 of the Purchase Agreement (as equitably adjusted to reflect
any stock split, stock dividend, combination, reorganization, recapitalization,
reclassification or other similar event involving Common Shares), and (iii) upon
consummation of which the Corporation's Class A Non-Voting Shares or Class B
Subordinate Voting Shares are listed on The Toronto Stock Exchange and a U.S.
national securities exchange or quoted on the Nasdaq National Market.

     1.29. Sell shall mean, as to any Shares, to sell, or in any other way
directly or indirectly transfer, assign, distribute, pledge, encumber or
otherwise dispose of, either voluntarily or involuntarily, including the
assignment or transfer of voting rights attaching to such Shares (if any); the
terms Sale, Selling and Sold shall have meanings correlative to the foregoing.

     1.30. Senior Officer shall mean any of the individuals, numbering at least
five, who hold any of the following positions or their functional equivalents
irrespective of actual title held in the Corporation: (A) Chairman; (B)
Vice-Chairman; (C) Chief Executive Officer; (D) President; (E) Chief Financial
Officer; (F) Chief Operating Officer; and (G) Executive Vice President.

<PAGE>

                                      -7-

     1.31. Shareholders shall mean the parties to this Agreement (other than the
Corporation, GSCP or, except as specified in Section 32, Ledcor) and any other
Person who executes, and agrees to be bound by the terms of, this Agreement.

     1.32. Selling Shareholders shall mean any Shareholders who Sell or propose
to Sell any Shares of the Corporation.

     1.33. Shares shall mean (i) any Common Shares and (ii) any Common Share
Equivalents, in each case, whether owned or outstanding on the date hereof or
hereafter.

     1.34. Subsidiary shall mean with respect to any Person, any company,
partnership or other entity (i) of which at least a majority of the shares of
capital stock or other ownership interests having ordinary voting power to elect
a majority of the board of directors or other similar managing body of such
company, partnership or other entity are at the time owned or controlled,
directly or indirectly, by such Person or (ii) the management of which is
otherwise controlled, directly or indirectly, through one or more intermediaries
by such Person.

     1.35. Supermajority shall mean all or all but one of the following
Investors who then own, or whose Investor Affiliates then own, Shares: DLJ, the
GSCP Parties, Providence and Tyco.

     1.36. Voting Shares shall mean the Series B Voting Preferred Shares into
which the Class A Non-Voting Preferred Shares are convertible and the Class B
Subordinate Voting Shares.

     1.37. WFH Share Purchase Agreements shall mean the agreements, as may be
amended from time to time, between Worldwide Fiber Holdings Ltd. and (i) Stephen
Stow and (ii) Larry Olsen, as the case may be, to sell and purchase shares.

     SECTION 2. Methodology for Calculations. For purposes of this Agreement,
the Sale of a Common Share Equivalent (whether or not an In-The-Money Common
Share Equivalent) shall be treated as the Sale of the Common Shares into which
such Common Share Equivalent can be converted, exchanged or exercised. Except as
otherwise specifically provided in this Agreement, for purposes of all
calculations under this Agreement (including, without limitation, calculations
to determine the ownership of Common Shares of any Shareholder and the
percentage of outstanding Common Shares owned by any Shareholder), all Series A
Non-Voting Preferred Shares and (without duplication) all other In-The-Money
Common Share Equivalents, but no other Common Share Equivalents, shall be
treated as having been converted, exchanged or exercised into or for Common
Shares.

<PAGE>

                                      -8-

     SECTION 3. Limitations on Purchases and Sales of Shares by Shareholders.

     (a) Until the earlier of (x) 12 months from the date hereof, and (y) an IPO
by the Corporation, (the "Lockup Period"), no Shareholder shall Sell any Shares,
whether owned on the date hereof or acquired hereafter, other than:

                 (i) Sales of Shares to (x) with respect to any Investor, an
         Investor Affiliate (as defined in Section 24) of such Investor, (y)
         with respect to any individual, a spouse, child, parent, or trust
         created for the exclusive benefit of such individual and/or any one or
         more of such relatives or, (z) with respect to WFH, a wholly-owned
         Subsidiary of Ledcor or the entities described in Schedule 3(a)(i) or
         such other entity as may be consented to in writing by each of the
         Investors;

                (ii) Sales by WFH after the date hereof, in one or more
         arm's-length transactions, of an aggregate of up to [        ]* Shares
         (as equitably adjusted to reflect any stock split, stock dividend,
         combination, reorganization, recapitalization, reclassification or
         other similar event involving Common Shares) in one or more Private
         Sales to any Person, provided in each case (A) each such Sale is made
         in accordance with Section 5 hereof, (B) each potential purchaser has
         not been disapproved by a Supermajority on the basis that a Sale to
         such Person could reasonably be expected to diminish the value of the
         Corporation and (C) the price per Share of each such Sale is equal to
         or greater than the Adjusted Initial Per Share Price;

               (iii) A Sale by WFH of all, but not less than all, of its Shares
         in an arm's-length transaction to any Person; provided (A) such Sale is
         made in accordance with Section 5 hereof and (B) the price per Share of
         such Sale is equal to or greater than 300% of the Adjusted Initial Per
         Share Price;

                (iv) Sales of Shares pursuant to WFH Share Purchase Agreements;

                 (v) Sales of Shares pursuant to the letter agreement, dated as
         of September 7, 1999, among WFH, the Investors and the other parties
         thereto; and

                (vi) Sales of Shares pursuant to Section 12.4.

     (b) No Shareholder shall Sell any Shares, whether owned on the date hereof
or acquired hereafter, other than:

                 (i) Sales permitted by paragraph (a);

----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to a request for confidential treatment under Rule 406.

<PAGE>

                                      -9-

                (ii) Sales after the Lockup Period (but not including a pledge
         or other encumbrance not constituting a disposition of a Shareholder's
         entire interest therein) of Shares in accordance with Sections 4, 5 and
         10 hereof;

               (iii) Public Sales of Shares after the Lockup Period; and

                (iv) Sales of Shares to the extent such Shares were acquired in
         secondary market purchases (and not from the Corporation) following an
         IPO.

     (c) In addition to the restrictions set forth in paragraphs (a) and (b)
above, no Shareholder shall Sell any Shares in a Private Sale to a Competitor
except (i) in an Exit Sale (as defined in Section 6(a)) or (ii) in a Required
Sale (as defined in Section 10(c)).

     (d) Ledcor shall not Sell any capital shares or other equity interests of
WFH or permit WFH to issue any of its capital shares or other equity interests
to any Person other than Ledcor or wholly-owned subsidiaries of Ledcor.

     (e) Anything contained in this Agreement to the contrary notwithstanding,
any transferee of Shares pursuant to a Sale under paragraph (a) or clause (ii)
of paragraph (b) who is not a Shareholder shall, upon consummation of, and as a
condition to, such Sale (i) execute, and agree to be bound by the terms of, this
Agreement and shall thereafter be deemed a Shareholder, with the same rights and
obligations of the Shareholder which is the transferor of the Shares, for all
purposes of this Agreement (unless otherwise specified herein), and (ii) execute
and deliver a certificate and such other materials as shall be necessary to
establish to the satisfaction of the Corporation and each of the Investors that
(A) the transferee is purchasing the Shares for its own account, for investment
and not with a view to the distribution thereof, and (B) that such Sale is
otherwise being made in compliance with all applicable Canadian and non-Canadian
federal, provincial and state laws (including, without limitation, foreign
ownership and Securities Laws), and such Sale will not result in any violation
or non-compliance with any such laws on the part of the Corporation.

     (f) Anything contained in this Agreement to the contrary notwithstanding,
each of Stephen Stow and Larry Olsen, as the case may be, shall be entitled to
pledge to a financial institution, insurance company, investment bank or other
similar entity, Shares acquired pursuant to the WFH Share Purchase Agreements;
provided, that such pledge is granted to secure amounts borrowed to purchase
such Shares.

     SECTION 4. Rights of First Offer. Until the earlier of (x) two (2) years
from the date hereof, and (y) an IPO by the Corporation, subject to Section 4(e)
and Section 12.4 any Sale by a Shareholder, except a

<PAGE>

                                      -10-

Sale pursuant to Section 3(a), shall be consummated only in accordance with the
following procedures:

     (a) The Selling Shareholder shall first deliver to the Corporation and each
of the Other Shareholders a written notice (a "Section 4 Offer Notice"), which
shall (i) state the Selling Shareholder's intention to sell Shares to one or
more Persons (with no obligation (except in the case of a Sale that is permitted
only under the provision of Section 3(a)(ii) in which case the proposed
purchaser shall be identified) to identify or theretofore have identified the
name of such Person or Persons or to have negotiated a transaction with respect
to the Sale of such Shares), the amount and type of Shares to be sold (the
"Subject Shares"), the purchase price therefor and a summary of the other
material terms of the proposed Sale, and (ii) offer the Corporation and the
Other Shareholders the option to acquire all or a portion of such Subject Shares
upon the same terms and subject to the same conditions of the proposed Sale as
set forth in the Section 4 Offer Notice (the "Section 4 Offer"), provided that
such Section 4 Offer may require that it must be accepted by the Corporation and
the Other Shareholders on an all or nothing basis (an "All or Nothing Sale").
The Section 4 Offer shall remain open and irrevocable for the periods set forth
below (and, to the extent the Section 4 Offer is accepted during such periods,
until the consummation of the Sale contemplated by the Section 4 Offer). The
Corporation shall have the right and option, but not the obligation, for a
period of 30 days after delivery of the Section 4 Offer Notice (the "Section
4(a) Acceptance Period"), to accept all or any part of the Subject Shares at the
purchase price and on the terms stated in the Section 4 Offer Notice on its own
behalf or on behalf of a nominee of the Corporation that has been approved for
such purposes in writing by a Supermajority (a "Permitted Nominee"); provided,
however, that, if the Section 4 Offer contemplated an All or Nothing Sale and
only a part of the Subject Shares is accepted by the Corporation (or its
Permitted Nominee) during the Section 4(a) Acceptance Period, such acceptance
shall be subject to the acceptance of the Other Shareholders, pursuant to
Section 4(b), of the remaining Subject Shares. Notice of the Corporation's
intention to accept a Section 4 Offer, in whole or in part, shall be evidenced
by a writing signed by the Corporation (the "Section 4(a) Acceptance Notice")
and delivered to the Selling Shareholder and Other Shareholders prior to the end
of the Section 4 Acceptance Period, setting forth the number and type of Shares
that the Corporation elects to acquire.

     (b) If the Corporation or its Permitted Nominee, as the case may be, (i)
shall fail to accept all of the Subject Shares offered for sale pursuant to the
Section 4 Offer, (ii) shall reject in writing the Section 4 Offer, or (iii)
shall fail to respond to a Section 4 Offer Notice prior to the expiration of the
Section 4(a) Acceptance Period, then, upon the earlier of the expiration of the
Section 4(a) Acceptance Period, the giving of the Section 4(a) Acceptance Notice
and the giving of written notice of rejection by the Corporation, each Other
Shareholder shall have the right and option, for a period of 15 days thereafter
(the "Section

<PAGE>

                                      -11-

4(b) Acceptance Period"), to accept all or any part of the Subject Shares so
offered and not accepted by the Corporation or its Permitted Nominee, as the
case may be (the "Refused Shares") at the purchase price and on the terms stated
in the Section 4 Notice; provided, however, that, if the Section 4 Offer
contemplated an All or Nothing Sale, the Other Shareholders, in the aggregate,
may accept, during the Section 4(b) Acceptance Period, the Subject Shares which,
when taken together with the Subject Shares accepted by the Corporation pursuant
to Section 4(a), if any, constitute all, but not less than all, of the Subject
Shares, at the purchase price and on the terms stated in the Section 4 Offer
Notice. Such acceptance shall be made by delivering a written notice to the
Corporation and the Selling Shareholder within the Section 4(b) Acceptance
Period specifying the maximum number of Shares such Other Shareholder will
purchase (the "First Offer Shares"). If, upon the expiration of the Section 4(b)
Acceptance Period, the aggregate amount of First Offer Shares exceeds the amount
of Refused Shares, the Refused Shares shall be allocated among the Other
Shareholders as follows: (i) first, each Other Shareholder shall be entitled to
purchase no more than its Proportionate Percentage (as defined below) of Refused
Shares; (ii) second, if any of the Other Shareholders offered to purchase less
than its Proportionate Percentage in its acceptance notice so that Refused
Shares have not been allocated for purchase pursuant to (i) above (the
"Remaining Shares"), each Other Shareholder (an "Oversubscribed Shareholder")
which had offered to purchase a number of Refused Shares in excess of the amount
of Shares allocated for purchase to it in accordance with previous allocations
of such Refused Shares, shall be entitled to purchase an amount of Remaining
Shares equal to no more than its Proportionate Percentage (treating only
Oversubscribed Shareholders as Shareholders for these purposes) of the Remaining
Shares; and (iii) third, the process set forth in (ii) above shall be repeated
with respect to any Refused Shares not allocated for purchase until all Refused
Shares are allocated for purchase. For purposes of this Agreement,
"Proportionate Percentage" shall mean, as to each Other Shareholder, the
quotient obtained (expressed as a percentage) by dividing (A) the number of
Shares owned by such Other Shareholder on the first day of the Section 4(b)
Acceptance Period by (B) the aggregate number of Shares owned on the first day
of the Section 4(b) Acceptance Period by all Other Shareholders who exercise
their option to purchase Refused Shares.

     (c) If complete effective acceptance shall not be received pursuant to
Sections 4(a) and 4(b) above with respect to all of the Subject Shares offered
for sale pursuant to the Section 4 Offer Notice, then the Selling Shareholder
may (subject to complying with the provisions of Section 5 hereof) Sell all or
any portion of the Subject Shares so offered for sale and not so accepted, at a
price not less than the purchase price, and on terms not more favorable, in the
aggregate, to the purchaser thereof than the terms stated in the Section 4 Offer
Notice at any time within 90 days after the expiration of the Section 4(b)
Acceptance Period (the "Sale Period"); provided, however, that, if the Section 4
Offer contemplated an All or Nothing Sale and only a part of the Subject Shares
has been accepted by the Corporation (or

<PAGE>

                                      -12-

its Permitted Nominee) and the Other Shareholders following the expiration of
the Section 4(b) Acceptance Period, the Selling Shareholder may Sell all of, or
a portion of, the Subject Shares held by such Selling Shareholder. To the extent
the Selling Shareholder Sells all or any portion of the Subject Shares so
offered for sale during the Sale Period, the Selling Shareholder shall promptly
notify the Corporation, and the Corporation shall promptly notify the Other
Shareholders, as to (i) the number of Shares, if any, that the Selling
Shareholder then owns, (ii) the number of Shares that the Selling Shareholder
has sold, (iii) the terms and conditions of such Sale and (iv) the name of the
beneficial and record purchasers of any Shares sold. In the event that all of
the Shares are not sold by the Selling Shareholder during the Sale Period, the
right of the Selling Shareholder to Sell such unsold Shares shall expire and the
obligations of this Section 4 shall be reinstated; provided, however, that, in
the event that the Selling Shareholder determines, at any time during the Sale
Period, that the sale of all of the Shares on the terms set forth in the Section
4 Offer Notice is impractical, the Selling Shareholder may terminate the attempt
to Sell the Subject Shares as provided in this Section 4(c) by written notice to
all Shareholders that are a Party to this Agreement and reinstate the procedures
provided in this Section 4 without waiting for the expiration of the Sale
Period.

     (d) All Sales of Subject Shares to the Corporation (or its Permitted
Nominee) and/or the Other Shareholders subject to any one Section 4 Offer Notice
shall be consummated contemporaneously at the offices of the Corporation on the
later of (i) a mutually satisfactory business day within 15 days after the
expiration of the Section 4(b) Acceptance Period or (ii) the fifth business day
following the receipt of all regulatory approvals, if any (including, without
limitation, (A) the expiration or termination of all waiting periods under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended ("HSR") and (B)
the receipt of all approvals required by any applicable Canadian regulatory
authorities), applicable to such sales, or at such other time and/or place as
the parties to such sales may agree. The delivery of certificates or other
instruments evidencing such Subject Shares duly endorsed for transfer and
accompanied by stock powers shall be made on such date against payment of the
purchase price for such Subject Shares.

     (e) The requirements of this Section 4 shall not apply to (i) any Sale of
Shares by a Shareholder pursuant to Section 3(a) hereof, (ii) any other Sale as
to which the Corporation, all of the Investors and holders of at least
two-thirds (2/3) of the outstanding Shares as of the date of such Sale waive
compliance and (iii) any sale pursuant to Sections 6, 10 or 12.4 or Sales of
Shares pursuant to the letter agreement, dated as of September 7, 1999, among
WFH, the Investors and the other parties thereto.

     SECTION 5. Tag-Along Rights. Subject to Section 5(c) and except for any
Sale of Shares pursuant to Sections 3(a)(i), 3(a)(ii), 3(a)(iv), 3(a)(v),
3(a)(vi) or 3(b)(iii), Section 10 (with respect to Sales by In-

<PAGE>

                                      -13-

vestors and Investor Affiliates) or Section 12.4 or Sales of Shares pursuant to
the letter agreement, dated as of September 7, 1999, among WFH, the Investors
and the other parties thereto, or any Sale of Shares to the Corporation (or its
Permitted Nominee) and/or the Other Shareholders pursuant to Section 4, each
Shareholder shall not, whether acting alone or in concert with any Other
Shareholders, in any transaction or series of transactions, Sell any Shares to
another Person or Group (other than to an Investor), except in accordance with
the following procedures:

     (a) (i) Any Shareholder or Shareholders proposing to Sell Shares (for
purposes of this Section, the "Section 5 Seller") shall first deliver to each
Section 5 Other Shareholder (as defined below) a written notice (the "Section 5
Notice"), which shall specifically identify the proposed transferee (the
"Section 5 Purchaser"), the amount and type of Shares proposed to be sold, the
purchase price therefor, and a summary of the other material terms and
conditions of the proposed sale, and shall contain an offer (the "Section 5
Offer") by the Section 5 Purchaser to each Section 5 Other Shareholder, which
shall be irrevocable for a period of ten days after the delivery thereof (the
"Section 5 Acceptance Period") (and, to the extent the Section 5 Offer is
accepted during such ten day period, until the closing of the Sale contemplated
by the Section 5 Offer), to purchase an amount of Shares of such Section 5 Other
Shareholder (as defined below) at the same price per share (and, in the case of
Common Share Equivalents, such price per share multiplied by the number of
Common Shares issuable upon the conversion, exchange or exercise of such Common
Share Equivalent subject to reduction, if appropriate, for the amount per share
of the exercise or purchase price (if any) to be paid by the holder of such
Common Share Equivalent) to be paid to, and upon the same terms and conditions
as, the Section 5 Seller. A copy of the Section 5 Notice shall promptly be sent
to the Corporation. Notice of a Section 5 Other Shareholder's intention to
accept a Section 5 Offer, in whole or in part, shall be evidenced by a writing
signed by such Section 5 Other Shareholder and delivered to the Section 5
Purchaser as specified in the Section 5 Notice and the Corporation prior to the
end of the Section 5 Acceptance Period, setting forth the number of Shares that
such Section 5 Other Shareholder elects to Sell; provided, however, that such
Section 5 Other Shareholder may only sell up to that number of Shares
(calculated in accordance with Section 2) as shall equal the product of (x) a
fraction, the numerator of which is the number of Shares owned by the Section 5
Other Shareholder as of the date of such proposed sale and the denominator of
which is the aggregate number of outstanding Shares as of the date of such
proposed sale, multiplied by (y) the aggregate number of Shares proposed to be
sold by the Section 5 Seller. The number of Shares proposed to be sold by the
Section 5 Seller shall be reduced if and to the extent necessary to provide for
such sale of Shares by such Section 5 Other Shareholders electing to exercise
their right to Sell Shares under this Section 5. If effective acceptance by any
Section 5 Other Shareholders has been received pursuant to this paragraph (a),
then the Selling Shareholder shall not consummate such Sale of Shares without
participation of such Section 5 Other Shareholders. For purposes of this

<PAGE>

                                      -14-

Agreement, "Section 5 Other Shareholder" shall mean any Other Shareholder that
is an Investor or a Material Investor.

     (b) All Sales of Shares to the Section 5 Purchaser shall be consummated
contemporaneously at the offices of the Corporation on a mutually satisfactory
business day as soon as practicable, but in no event more than 15 days after the
expiration of the Section 5 Acceptance Period, or, if later, the fifth business
day following the receipt of all regulatory approvals, if any (including,
without limitation, (A) the expiration or termination of all waiting periods
under HSR and (B) the receipt of all approvals required by any Canadian
regulatory authorities), applicable to such Sales. The delivery of certificates
or other instruments evidencing such Shares duly endorsed for transfer shall be
made on such date against payment of the purchase price for such Shares.

     (c) Anything contained herein to the contrary notwithstanding, any Selling
Shareholder shall, prior to complying with the provisions of this Section 5,
shall have first complied with the provisions of Section 4 hereof.

     SECTION 6. Bring-Along Rights.

     (a) Until the earlier of (x) eighteen (18) months after the date hereof,
and (y) an IPO by the Corporation, if WFH proposes to Sell to any Person or
Group of Persons (collectively, a "Buyer"), in a bona fide arm's-length
transaction or series of transactions, including by way of a purchase agreement,
tender offer, merger or other business combination transaction or otherwise, all
of the Shares held by it at a price per Share of more than 300% of the Adjusted
Initial Per Share Price (any such transaction being referred to herein as an
"Exit Sale"), then WFH may elect to require all Other Shareholders to Sell all
Shares beneficially owned by each of them concurrently with such Exit Sale to
such Buyer at the purchase price per share (and, in the case of Common Share
Equivalents, such purchase price per share multiplied by the number of Common
Shares issuable upon the conversion, exchange or exercise of such Common Share
Equivalent subject to reduction, if appropriate, for the amount per share of the
exercise or purchase price (if any) of such Common Share Equivalent), including
any fees and the value of any other consideration received by WFH or its
Affiliates in connection with the Exit Sale, and upon the same terms and
conditions, of the Exit Sale.

     (b) The rights set forth in Section 6(a) shall be exercised by giving
written notice (the "Section 6 Notice") to each Other Shareholder setting forth
in detail the terms of the proposed Sale and the proposed closing date of the
Exit Sale, which proposed date (the "Section 6 Closing Date") shall be the later
of (i) a business day not less than 15 or more than 60 days after such Section 6
Notice is delivered to the Other Shareholders or (ii) the fifth

<PAGE>
                                      -15-

business day following the receipt of all regulatory or third party consents and
approvals, if any, applicable to such Sale.

     (c) Each Other Shareholder will (i) take all such actions, including,
without limitation, voting in favor of such proposed Sale and waiving any
appraisal, dissenter or similar rights under applicable law, as may be requested
by WFH to carry out the purposes of this Section 6, and (ii) execute all
documents reasonably requested by WFH containing such terms and conditions,
including, without limitation, representations and warranties with respect to
(x) matters of title to such Other Shareholder's securities and (y) the due
authorization (or capacity) and due and valid execution and delivery by such
Other Shareholder of documentation in respect of the Exit Sale, as those
executed by WFH; provided, however, such Other Shareholder shall not be required
to make any other representations and warranties and shall not be required to
join in any indemnity other than with respect to such Other Shareholder's
specific representations and warranties described above, or be a party to any
non-compete or similar provision.

     (d) All Sales of Shares to the Buyer pursuant to this Section 6 shall be
consummated contemporaneously at the offices of the Corporation (or such other
place as is mutually agreed upon by the parties in advance) on the Section 6
Closing Date. The delivery of certificates or other instruments evidencing the
Sale of such Shares, duly endorsed for transfer, shall be made on such date
against payment of the purchase price for such Shares. WFI will bear all of the
costs and expenses incurred solely in connection with an Exit Sale to the extent
such costs are incurred for the benefit of all Shareholders and are not
otherwise paid by the Corporation or the Buyer.

     (e) Notwithstanding anything to the contrary contained herein, any Sale of
Shares pursuant to an Exit Sale shall be exempt from the provisions of Section 4
hereof.

     SECTION 7. Preemptive Rights.

     (a) Except for Exempt Securities (as defined below), the Corporation shall
not issue, sell or exchange, or agree to issue, sell or exchange (collectively,
"Issue," and any issuance, sale or exchange resulting therefrom, an "Issuance")
(i) any of the Corporation's capital shares, (ii) any Common Share Equivalent or
(iii) any other equity security of the Corporation, including any rights to
subscribe for, purchase or otherwise acquire any capital shares or other equity
security of the Corporation (collectively, an "Equity Security") unless, in each
case, the Corporation shall have first given written notice (the "Section 7
Offer Notice") to each then holder of Preferred Shares (each a "Preemptive
Holder") which shall (a) state the Corporation's intention to sell Equity
Securities, the amount to be issued, sold or exchanged, the terms of such
securities, the purchase price therefor and a summary of the

<PAGE>
                                      -16-

other material terms of the proposed Issuance and (b) offer (a "Preemptive
Offer") to Issue to each Preemptive Holder such Preemptive Holder's Pro Rata
Share (as defined below) of such securities (with respect to each Preemptive
Holder, the "Offered Securities") upon the terms and subject to the conditions
set forth in the Section 7 Offer Notice, which Preemptive Offer by its terms
shall remain open for a period of 15 days from the date it is delivered by the
Corporation to the Preemptive Holder (and, to the extent the Preemptive Offer is
accepted during such 15 day period, until the closing of the Sales contemplated
by the Preemptive Offer). "Pro Rata Share," for purposes of this Section, shall
mean the quotient obtained by dividing (i) the number of Common Shares, as
determined in accordance with Section 2, owned by that Preemptive Holder on the
date of the Preemptive Offer, by (ii) the total number of Common Shares
outstanding, as determined by Section 2 hereof, on the date of the Preemptive
Offer.

     (b) Notice of a Preemptive Holder's intention to accept a Preemptive Offer,
in whole or in part, shall be evidenced by a writing signed by the Preemptive
Holder and delivered to the Corporation prior to the end of the 15 day period of
such Preemptive Offer (each, a "Section 7 Notice of Acceptance"), setting forth
such portion of the Offered Securities that the Preemptive Holder elects to
purchase.

     (c) (i) In the event that a Section 7 Notice of Acceptance is not given by
a Preemptive Holder accepting all of its Offered Securities, the Corporation
shall have 30 days following the earlier of (A) delivery of the Section 7 Notice
of Acceptance and (B) the expiration of the 15 day period referred to in clause
(b) above if no Section 7 Notice of Acceptance is delivered, to Issue all or any
part of such remaining Offered Securities not covered by the Section 7 Notice of
Acceptance to any other Person or Persons, but only upon terms and conditions,
including, without limitation, per Share price, payment terms and dividend
payment rates, interest rates, conversion ratios or similar terms, if any, which
are no more favorable, in the aggregate, to such other Person or Persons or less
favorable to the Corporation than those set forth in the Preemptive Offer.

     (ii) If the Corporation does not consummate the Issuance of all or part of
the remaining Offered Securities to such other Person or Persons within the 30
day period referred to in clause (c) above, the right provided hereunder shall
be deemed to be revived and such securities shall not be offered unless first
reoffered to the Preemptive Holders in accordance with this Section 7.

     (iii) The purchase by a Preemptive Holder of any Offered Securities is
subject in all cases to the execution and delivery by the Corporation and the
Preemptive Holder of a purchase agreement relating to such Offered Securities in
form and substance similar in all material respects to the extent applicable to
that executed and delivered between the Corporation and such other persons. All
Issuances of Shares to any Preemptive Holder pursuant to this Section 7 shall be
consummated contemporaneously at the offices of the Cor-

<PAGE>
                                      -17-

poration (or such other place as is mutually agreed upon by the parties) on the
later of (A) a business day not less than 15 or more than 60 days after the end
of the 15 day period referred to in clause (b) above, and (B) the fifth business
day following the receipt of all regulatory or third party consents and
approvals, if any, applicable to such Sales, or at such other time and/or place
as the parties to such Sales may agree. The delivery of certificates or other
instruments evidencing such Shares duly endorsed for transfer shall be made on
such date against payment of the purchase price for such Shares.

     (d) As used herein, "Exempt Securities" shall mean: (i) any Common Shares
issuable or issued to employees, directors and consultants of the Corporation
pursuant to any employee benefit plans, and which issuances have been approved
in accordance with Section 9 or are Employee Shares (as defined in the Purchase
Agreement); (ii) any Series A Non-Voting Preferred Shares issued pursuant to the
Purchase Agreement and any Common Shares or Series B Voting Preferred Shares
issuable upon the conversion of any such Series A Non-Voting Preferred Shares;
(iii) Common Shares or Common Share Equivalents issued and outstanding on the
date hereof or Common Shares issued upon the conversion or exercise of any such
outstanding Common Share Equivalents; (iv) Common Shares issued or issuable as
direct consideration for the acquisition by the Corporation of another business
entity or in connection with a merger or consolidation or in connection with the
acquisition or lease of assets or the issuance of indebtedness, which issuance
has been approved in accordance with Section 9; (v) Common Shares issued in any
IPO; (vi) Common Shares issued pursuant to a Minority Roll-Up Transaction; or
(vii) Common Shares issued pursuant to the Ledcor Roll-Up Agreement; (viii)
Shares issued upon conversion of other Shares to the extent permitted by the
terms of this Agreement and in accordance with their terms; or (ix) Shares
issued to Ramsey-Beirne Investment Partners, LLC to acquire Shares pursuant to
terms of the agreement dated July 7, 1999 between the Corporation and
Ramsey-Beirne Investment Partners, LLC..

     SECTION 8. Corporate Governance.

     8.1. Board of Directors.(a) The Board shall have overall responsibility for
managing and supervising the management of the business and affairs of the
Corporation, and the power and authority of the directors shall be subject only
to such restrictions as are imposed by this Agreement and by applicable law.

     (b) The maximum number of members of the Board shall be twelve (12).

     (c) At all times, a majority of the directors on the Board and any
committees of the Board shall be Canadian citizens ordinarily resident in
Canada.

<PAGE>

                                      -18-

     (d) From and after the date hereof and until DLJ, together with its
Investor Affiliates, Sell 25% or more of the Shares issued to it pursuant to the
Purchase Agreement (as equitably adjusted to reflect any stock split, stock
dividend, combination, reorganization, recapitalization, reclassification or
other similar event involving Common Shares), DLJ shall have the right to
nominate one person (the "DLJ Designee") to serve as a director on the Board.

     (e) From and after the date hereof and until the GSCP Parties, together
with their Investor Affiliates, Sell 25% or more of its Shares issued to it
pursuant to the Purchase Agreement (as equitably adjusted to reflect any stock
split, stock dividend, combination, reorganization, recapitalization,
reclassification or other similar event involving Common Shares), GSCP shall
have the right to nominate one person (the "GSCP Designee") to serve as a
director on the Board.

     (f) From and after the date hereof and until Providence, together with its
Investor Affiliates, Sell 25% or more of the Shares issued to it pursuant to the
Purchase Agreement (as equitably adjusted to reflect any stock split, stock
dividend, combination, reorganization, recapitalization, reclassification or
other similar event involving Common Shares), Providence shall have the right to
nominate one person (the "Providence Designee") to serve as a director on the
Board.

     (g) From and after the date hereof and until Tyco, together with its
Investor Affiliates, Sell 56% or more of the Shares issued to it pursuant to the
Purchase Agreement (as equitably adjusted to reflect any stock split, stock
dividend, combination, reorganization, recapitalization, reclassification or
other similar event involving Common Shares), Tyco shall have the right to
nominate one person (the "Tyco Designee"; collectively with the DLJ Designee,
the GSCP Designee and the Providence Designee, the "Investor Designees"), to
serve as a director on the Board.

     (h) From and after the date hereof, the remaining members of the Board
shall be nominated by members of management of the Corporation (the
"Non-Investor Designees", collectively with the DLJ Designee, the GSCP Designee,
the Providence Designee and the Tyco Designee, the "Designees").

     (i) At each meeting of Shareholders at which the election of members of the
Board is on the agenda, the Corporation shall recommend to Shareholders the
election of the Designees as directors and each Shareholder shall vote all of
the voting securities of the Corporation over which such Person has voting
control so as to effect the provisions of this Section 8.

<PAGE>
                                      -19-

     (j) Prior to an IPO, the Corporation shall, after receiving notice from
such Investors as to the identity of any representative of such Investor (a
"Representative"), (i) permit a Representative to attend all Board meetings and
all committees thereof as an observer; and (ii) provide the Representative
advance notice of each such meeting, including such meeting's time and place, at
the same time and in the same manner as such notice is provided to the members
of the Board (or such committee thereof) and copies of all materials distributed
to the members of the Board (or such committee thereof) at the same time as such
materials are distributed to such Board (or such committee thereof) and shall
permit the Representative to have the same access to information concerning the
business and operations of the Corporation; and (iii) permit the Representative
to discuss the affairs, finances and accounts of the Corporation with, and to
make proposals and furnish advice with respect thereto to, the Board, without
voting. Reasonable out-of-pocket expenses incurred by the Representative for the
purposes of attending Board (or committee) meetings will be paid by the
Corporation.

     8.2. Vacancies; Removal.

     (a) Subject to paragraph (b) of this Section 8.2, each director of the
Corporation shall hold office until his or her death or resignation or until his
or her successor shall have been duly elected and qualified. If any Investor
Designee shall cease to serve as a director of the Corporation for any reason,
the vacancy resulting thereby shall be filled by another director nominated by
the Investor initially nominating that director.

     (b) Each Shareholder in its capacity as a holder of Shares agrees that it
shall not vote in favor of a resolution in respect of the removal of an Investor
Designee unless that resolution has been put forward by the Investor having the
right to designate that director, and the removal of that director has been
recommended by the Investor having the right to designate that director. Each
Investor shall have the right to call a meeting of Shareholders to put forward a
resolution of the Shareholders removing any director designated by it, with or
without cause, at any time.

     8.3. Quorum.

     (a) Subject to paragraphs (b) and (c) below, a quorum for meetings of the
Board shall be nine persons present of which three shall be Investor Designees;
provided, however, that at all times a majority of directors present must be
Canadian citizens ordinarily resident in Canada.

     (b) If at a meeting of directors a quorum is not present, the directors may
adjourn the meeting to a fixed time and place (provided they shall give written
notice of such time and place to each director not in attendance). At the
meeting immediately following the

<PAGE>
                                      -20-

adjourned meeting, the directors present at such meeting shall constitute a
quorum; provided, however, that unless a full quorum is present as provided in
paragraph (a) above, the directors present at such meeting may not transact any
business except as specifically set forth in the notice of meeting.

     (c) The Corporation agrees that (i) each director shall be provided written
notice of the meetings of the Board , including adjourned meetings, at least
forty-eight (48) hours before such meetings, unless such notice is waived in any
manner, with attendance at such meetings constituting valid waiver (other than
attendance for the express purpose of objecting to the manner in which the
meeting was called), and (ii) each Investor Designee shall be provided with an
opportunity to participate in each meeting of the Board by means of a conference
telephone or similar communications equipment.

     8.4. Committees of the Corporation.

     (a) On or before the date hereof, the Board shall establish a nominating
committee (the "Nominating Committee") comprised of five directors, two of whom
shall be designated by the Financial Investors as long as designees of any of
the Financial Investors continue to serve on the Board, and three of whom shall
be designated by WFH and, shall be resident Canadians (as defined in the Canada
Business Corporations Act), which committee will have the exclusive authority to
make nominations with respect to hiring the Corporation's Senior Officers.

     (b) On or before the date hereof, the Board shall establish a compensation
committee (the "Compensation Committee") comprised of five directors, two of
whom shall be designated by the Financial Investors as long as designees of any
of the Financial Investors continue to serve on the Board, and three of whom
shall be designated by WFH and shall be resident Canadians, which committee will
have the exclusive authority to make recommendations to the Board with respect
to all aspects of compensation and other benefits, including stock options or
other equity based compensation, of the Senior Officers of the Corporation.

     (c) Without limiting paragraphs (a) or (b) above, the Corporation shall, at
the request of any of the Investors, cause a Investor Designee to be appointed
or elected in each case to each of the other committees of the Board, provided
that, following an IPO, such Investor Designee meets the qualifications
necessary to serve on such committee established in compliance with Section 9.
If any director serving on any committee shall cease to serve as a director of
the Corporation for any reason or otherwise is unable to fulfill his or her
duties on any such committee, he or she shall be succeeded by another director
designated in accordance with the provisions of Section 8.1 by the party
initially designating the director.

<PAGE>

                                      -21-

     8.5. Directors' Indemnification.

     (a) The Corporation shall obtain and cause to be maintained in effect, with
financially sound insurers, a policy of directors' and officers' liability
insurance in an amount of at least US$5,000,000 or more and upon such terms as
are reasonably acceptable to the Investors.

     (b) The Articles of Continuance, or By-Laws, or both, shall to the fullest
extent permitted by law provide for indemnification of, and advancement of
expenses to, and limitation of the personal liability of, the directors of the
Corporation or such other person or persons, if any, who, pursuant to a
provision of such Articles of Incorporation, exercise or perform any of the
powers or duties otherwise conferred or imposed upon such directors, which
provisions shall not be amended, repealed or otherwise modified in any manner
adverse to the directors until at least six (6) years following the date that
the Investors are no longer entitled to designate directors pursuant to this
Section 8.

     8.6. No Expansion of Duties. The parties acknowledge that the Investors and
their Investor Affiliates have investments in other business similar to and
which may compete with the Corporation's businesses ("Competing Businesses") and
reserve the right to make additional investments in other Competing Businesses
independent of their investments in the Corporation. By virtue of an Investor
holding Shares or by having persons designated by or affiliated with such
Investor serving on the Board or any Subsidiary's Board of Directors (or the
functional equivalent thereof in the case of non-corporate Subsidiaries) or
otherwise, no Investor nor any of the Investor Affiliates shall have any
obligation to the Corporation, any Subsidiary or any holder of Shares to refrain
from competing with the Corporation or any Subsidiary, making investments in
Competing Businesses, otherwise engaging in any commercial activity, and none of
the Corporation, any Subsidiary or any holder of Shares (other than such
Investor) shall have any right with respect to any such investments or
activities undertaken by such Investor. Without limitation of the foregoing,
each Investor or any Investor Affiliates may engage in or possess an interest in
other business ventures of any nature or description, independently or with
others, similar or dissimilar to the business of the Corporation or any
Subsidiary, and none of the Corporation, any Subsidiary or any holder of Shares
(other than the Investor) shall have any rights or expectancy by virtue of such
Investor's relationships with the Corporation, any Subsidiary, this Agreement or
otherwise in and to such independent ventures or the income of profits derived
therefrom; and the pursuit of any such venture, even if such investment is in a
Competing Business, shall not be deemed wrongful or improper. No Investor nor
any Investor Affiliates shall be obligated to present any particular investment
opportunity to the Corporation or any Subsidiary even if such opportunity is of
a character that, if presented to the Corporation or a Subsidiary, could be
taken by the Corporation or such Subsidiary, and the Investor and their Investor
Affiliates shall continue to have the right to

<PAGE>
                                      -22-

take for their own respective account or to recommend to others any such
particular investment opportunity.

     8.7. Expenses. The Corporation shall pay all reasonable travel expenses and
other out-of-pocket disbursements incurred by the directors to attend meetings
of the Board, of any Subsidiary board of directors or of any committees thereof.

     8.8. Shareholder Voting Arrangement. Each Shareholder agrees to vote all
Voting Shares of the Corporation beneficially owned by it with respect to the
election or removal, to or from the Board, of (a) so long as DLJ has the right
to nominate a DLJ Designee in accordance with section 8.1(d), the DLJ Designee
in accordance with the directions of DLJ, (b) so long as GSCP has the right to
nominate a GSCP Designee in accordance with section 8.1(e) the GSCP Designee in
accordance with the directions of GSCP, (c) so long as Providence has the right
to nominate a Providence Designee in accordance with Section 8.1(f), the
Providence Designee in accordance with the directions of Providence, (d) so long
as Tyco has the right to nominate a Tyco Designee in accordance with Section
8.1(g), the Tyco Designee in accordance with the directions of Tyco, and (e) the
Non-Investor Designees in accordance with the directions of the members of
management nominating such Designees.

     8.9. Appointment of Senior Officers. The Board shall have the sole and
absolute authority to elect, appoint or hire any Senior Officer of the
Corporation. Each Senior Officer shall be elected or appointed by the Board only
from nomination lists prepared and approved by the Nominating Committee.

     SECTION 9. Major Transactions.

     (a) To the fullest extent permitted by law, from and after the date hereof
until an IPO resulting in at least $150,000,000 of gross aggregate proceeds to
the Corporation and any Selling Shareholders before deducting underwriting
discounts and commissions and offering expenses, the Corporation shall not, and
shall not permit any of its Subsidiaries to, directly or indirectly, undertake
or enter into any binding agreements or commitments with respect to a Major
Transaction (as defined below) unless (1) the Corporation shall have given to
each Investor at least thirty (30) and not more than ninety (90) days prior
written notice (a "Major Transaction Notice"), setting forth in detail the
proposed terms of any Major Transaction and the proposed closing date (if
applicable) of the Major Transaction and (2) within thirty (30) days of
receiving the Major Transaction Notice Investors representing a Supermajority
shall not have given notice to the Corporation of their election to disapprove
or veto such Major Transaction.

     (b) A "Major Transaction" shall mean any of the following actions:

<PAGE>

                                      -23-

                 (i) the Corporation or any Subsidiary shall consolidate or
         merge into or with any other Person, sell or transfer all or
         substantially all of its assets to another Person, or enter into any
         other similar business combination transaction (other than any such
         transaction entered between or among the Corporation and any of its
         wholly owned Subsidiaries); provided, however, that this Section
         9(b)(i) shall not apply to any consolidation, merger, sale of assets or
         other similar business combination transaction pursuant to Section 10;

                (ii) the Corporation or any Subsidiary shall purchase, acquire
         or obtain any capital shares or other proprietary interest, directly or
         indirectly, in any other entity or related entities, or any business or
         assets of another Person or related Persons or enter into or commit to
         enter into or make any investment in any joint ventures or
         partnerships, establish any entity, including an affiliate of the
         Corporation, for consideration (including assumed liabilities) having a
         value (individually or in the aggregate during the term of this
         Agreement) in excess of $200 million;

               (iii) the Corporation or the Corporation and its Subsidiaries
         taken as a whole shall change significantly the scope and nature of its
         business or operations;

                (iv) the Corporation or any Subsidiary shall sell, lease,
         transfer or otherwise dispose of any asset or group of assets (other
         than sales, lease, transfer or other disposition of assets or group of
         assets in the ordinary course of business), in an aggregate amount
         (from the date hereof) with a book value or fair market value of $100
         million or more;

                 (v) the Corporation or any Subsidiary shall pay, or set aside
         any sums for the payment of, any dividends, or make any distribution
         on, any outstanding capital shares of the Corporation or any Subsidiary
         or redeem, repurchase or otherwise acquire any outstanding capital
         shares of the Corporation or any Subsidiary (except for dividends and
         distributions to, and redemptions, repurchases or other acquisitions
         from the Corporation or any wholly-owned Subsidiary of the
         Corporation);

                (vi) the Corporation or any Subsidiary shall authorize, issue,
         sell or grant any of its capital shares or other equity securities
         individually or in the aggregate during the term of the Agreement
         having a value (at the time of issuance) in excess of $100 million
         except for (A) the issuance of Series A Non-Voting Preferred Shares or
         other classes of Shares pursuant to the Purchase Agreement, (B) the
         issuance of Common Shares or Preferred Shares upon conversion of the
         Series A Non-Voting Preferred Shares issued or issuable pursuant to the
         Purchase Agreement, (C) the issuance of Common Shares upon the
         conversion, exchange or exercise of any Common Share Equivalent
         outstanding as of the date hereof, (D) the issuance of Common Shares

<PAGE>

                                      -24-

         in connection with the Minority Roll-Up Transactions, or (E) issuance
         of 4,500,000 Common Shares in connection with the Ledcor Roll-Up
         Transaction;

               (vii) the Corporation or any Subsidiary shall enter into any
         transactions (except as expressly permitted by the this Agreement and
         except for transactions between or among the Corporation, any of its
         wholly-owned Subsidiaries or any of the following entities so long as
         such entities and their wholly-owned Subsidiaries substantially retain
         their current ownership: (A) Worldwide Fiber (USA), Inc., (B) WFI-CN
         Fibre Inc. and (C) Worldwide Fiber IC LLC) with any shareholder,
         director, officer or employee of the Corporation or any of its
         Subsidiaries, or any person who, directly or indirectly, controls, is
         controlled by, or is under common control with any current shareholder,
         director, officer or employee or any relative or spouse of any current
         shareholder, director, officer or employee, other than any transactions
         existing as of the date hereof or transactions in the ordinary course
         of business on terms that are no less favorable to the Corporation or
         such Subsidiary than those that would have been obtained in a
         comparable transaction by the Corporation with a Person who is not an
         Affiliate, provided that if such transaction involves consideration
         exceeding $10,000,000 the Corporation shall have delivered to each of
         the Investors an opinion that the transaction is fair from a financial
         point of view to the Corporation issued by an accounting, appraisal or
         investment banking firm of national standing in the United States. If
         the proposed Major Transaction contemplated by this clause (viii) is
         with a Person who is an Investor or an Affiliate of any Investor, then
         such Investor shall be excluded from voting in a Supermajority's
         consideration of the subject Major Transaction and a fairness opinion
         shall not be required with respect to the subject Major Transaction
         with any Financial Investor or its Affiliates;

     (c) the Corporation shall amend its Articles of Continuance, By-Laws or
other constituent corporate documents, including, without limitation, any change
in the number of directors comprising its Board or the establishment of
committees;

     (d) the Corporation or any Subsidiary shall become a party to any agreement
which by its terms restricts the Corporation's performance of the terms of the
Purchase Agreement, the Registration Rights Agreement, the Series A Non-Voting
Preferred Shares or this Agreement;

     (e) the Corporation or any Subsidiary shall incur, create, issue, assume,
guarantee or otherwise become directly or indirectly liable, contingently or
otherwise, with respect to any indebtedness of more than $100 million
(individually or in the aggregate during the term of this Agreement) excluding
drawdowns of up to $150 million under the Corporation's senior credit facility,
substantially in accordance with the terms as set forth in the form of the draft
Credit Agreement dated August 30, 1999 between the Corporation, Certain Lend-

<PAGE>

                                      -25-

ers and Citibank Canada, as Administrative Agent (the "Citibank Facility") that
was provided to each of the Investors or any replacement facility with terms
that are at least as favorable to the Corporation as those in the Citibank
Facility in all material respects;

     (f) the approval or adoption by the Corporation of its financing and
capital plans as well as any material amendments to the Corporation's annual
budgets;

     (g) the Corporation and its Subsidiaries shall incur capital expenditures
exceeding 110% of the amount permitted by the approved budget in any fiscal year
on a consolidated basis;

     (h) the Corporation or any Subsidiary shall adopt or amend any stock option
plan, bonus plan or other employee benefit plan or grant or issue any Common
Shares, Common Share Equivalents or other equity securities under any such plan
other than initial grants or issuances under the "Existing 10% Option Pool" or
the "New 5% Option Pool" and grants of "Permitted Reissued Options," as such
terms are defined in the Purchase Agreement, and issuances of Common Shares upon
the exercise of Permitted Reissued Options;

     (i) the Corporation shall change its independent auditors;

     (j) the Corporation or any Subsidiary shall grant any severance or
termination pay to any executive officer or senior management except payments
made pursuant to any written agreements outstanding on the date hereof and
furnished to the Investors prior to the date hereof or approved in accordance
with this Section 9 or as determined by counsel to the Corporation to be
required by the applicable Canadian law;

     (k) the Corporation shall adopt or change any accounting principle,
practice or method (including, without limitation, changes in revenue
recognition), except for such changes which (A) in the opinion of its
independent auditors, are required by law, (B) do not involve discretion on the
part of the reporting entity, and (C) are described in a written notice
delivered to each of the Investors prior to implementation thereof;

     (l) the Corporation shall authorize, issue or Sell any Shares for a
purchase price per Common Share (including any consideration paid upon the
issuance thereof and upon conversion or exercise of any Common Share Equivalent)
less than the Adjusted Initial Per Share Price;

     (m) the Board shall make the determination permitted by the last sentence
of Section 10(c);

<PAGE>
                                      -26-

     (n) the Corporation shall remove from office, dismiss or terminate the
employment of any Senior Officer, other than for Cause; and

     (o) the Corporation or any Subsidiary shall agree or otherwise commit to
take any of the actions set forth in the foregoing subparagraphs (i) through
(xix).

     SECTION 10. Liquidity Rights.

     (a) Following the fourth anniversary of the date hereof, in the event the
Corporation has not completed a Qualified IPO, (i) any of DLJ, GSCP or
Providence, or (ii) Tyco, together with one of DLJ, GSCP or Providence (a
"Section 10 Seller"), may require the Corporation (provided the Corporation does
not exercise its right to either (i) acquire or (ii) cause a third party to
acquire, all but not less than all of the Shares held by the Section 10 Seller
and its Investor Affiliates pursuant to paragraph (b) below), to conduct,
pursuant to the auction process set forth below (the "Auction"), or otherwise as
provided in paragraph (c) below, a sale of the Corporation, whether by means of
a sale of all or substantially all of the Shares of the Corporation, a merger, a
sale of all or substantially all of the assets of the Corporation, or other
business combination transaction to a third party not affiliated with the
Investor exercising the Section 10 Offer (the "Acquiror").

     (b) A Section 10 Seller may initiate an Auction by delivering written
notice to the Corporation and each other Investor (the "Section 10 Notice"),
which shall (i) contain an offer (the "Section 10 Offer") by the Section 10
Seller to the Corporation to sell all, but not less than all, of the Shares held
by the Section 10 Seller to the Corporation or a third party identified by the
Corporation for the greater of (a) the liquidation preference of the Shares and
(b) Fair Market Value (the "Section 10 Minimum Price") during the Section 10
Option Period (as defined below) and (ii) shall set forth the Section 10 Minimum
Price, as determined in accordance with Section 1.7. Each other Investor shall
have a period of 10 days after receipt of the Section 10 Offer to notify the
Corporation in writing that it also makes a Section 10 Offer on the same terms
as the original Section 10 Offer. All Sales of Shares pursuant to the Section 10
Offers shall be consummated contemporaneously at the offices of the Corporation
on a mutually satisfactory business day as soon as practicable, but in any event
not later than 180 days after the delivery of the original Section 10 Offer (the
"Section 10 Offer Period"). The delivery of certificates or other instruments
evidencing such Shares duly endorsed for transfer shall be made on such date
against payment of the purchase price for such Shares. The Corporation or third
party purchaser shall bear all costs and expenses incurred in connection with a
Section 10 Sale. If any such purchase is not consummated in accordance with this
Section 10, including without limitation due to failure by the Corporation or
third party purchaser to pay the purchase price, such Section 10 Offer shall be
deemed to have not been accepted by the Corporation.

<PAGE>

                                      -27-

     (c) If the Corporation or another Person shall not have purchased all of
the Section 10 Offered Shares for not less than the Section 10 Minimum Price
prior to the expiration of the Section 10 Offer Period or if the Corporation
shall have rejected the Section 10 Offer, the Corporation shall at the election
of the Section 10 Seller either (i) retain an investment bank of national
reputation (the "Auctioneer") to conduct the Auction on the Corporation's behalf
or (ii) cause the Corporation to be sold in such other manner as the Section 10
Seller may elect with the consent of a Supermajority of the Investors (which may
include the Section 10 Seller). If the Corporation is to be sold by Auction, the
Auction shall be conducted pursuant to bidding procedures that are (i)
determined by the Auctioneer in its sole discretion, and (ii) uniformly
applicable and applied to all interested parties who are identified by the
Auctioneer or are otherwise invited to participate in the Auction for the
submission and evaluation of proposals. The Auction shall be completed as
promptly as possible and in any event within six months of the expiration of the
Section 10 Offer Option Period. The Corporation shall provide the Auctioneer
with all reasonable assistance requested by the Auctioneer to consummate the
Auction. All Shareholders and each of the Investors shall have the right to
submit a bid pursuant to the Auction for the outstanding Shares of the
Corporation not held by them and have such bid evaluated on a basis no more or
less favorable than that afforded to other participants in the Auction; provided
that for so long as WFH or any Investor shall wish to have its bid considered
pursuant to the Auction, WFH or such Investor, as the case may be, and its
representatives on the Board shall be recused from all information received or
considered by the Corporation or the Board with respect to the Auction or the
Board with respect to the Auction or the results thereof. The Acquiror shall be
identified by the Auctioneer at the conclusion of the Auction; provided, that
the bid by such Acquiror shall be satisfactory to the Section 10 Seller, and the
sale of such assets or capital shares of the Corporation to such Acquiror shall
constitute the "Required Sale" unless, prior to a binding agreement for the
Required Sale being entered into with the Acquiror, the Board shall determine in
good faith, after consultation with its financial and legal advisors, that any
bona fide written proposal from a third party for a competing transaction is
more favorable to the shareholders of the Corporation from a financial point of
view than the Required Sale, is likely to and capable of being consummated, and
is in the best interest of the shareholders of the Corporation, and the
Corporation has determined that failure to enter into such a competing
transaction will constitute a breach of the Board's fiduciary duties under
applicable law.

     (d) If the Required Sale is by means of a Sale of all or substantially all
of the issued and outstanding Shares of the Corporation, then the Required Sale
shall constitute an Exit Sale for purposes of Section 6 and the provisions of
Section 6 shall be applicable to such Required Sale as if the Section 10 Seller
had all of the rights of WFH thereunder to require the Other Shareholders to
participate in such Required Sale, provided, however, that if the Required Sale
shall not be consummated, all of the provisions of this Section 10 shall then be
reinstated.

<PAGE>

                                      -28-

     (e) If the Required Sale is other than by means of a sale of the
outstanding capital shares of the Corporation, then the Corporation shall
deliver a written notice (the "Required Sale Notice") to each Shareholder
setting forth in detail the terms of the proposed Required Sale and the proposed
closing date of the Required Sale, which proposed date (the "Required Sale
Closing Date") shall be the later of (i) a Business Day not less than 15 or more
than 60 days after such Required Sale Notice is delivered to the Shareholders,
or (ii) the fifth day following the receipt of all regulatory or third party
consents and approvals, if any, applicable to such Required Sale. Each
Shareholder will (x) take all such actions, including, without limitation,
voting in favor of such proposed Sale and waiving any appraisal, dissenter or
similar rights under applicable law, as may be requested by the first initial
Section 10 Seller to carry out the purposes of this Section 10 and (y) execute
all documents reasonably requested by the initial Section 10 Seller containing
such terms and conditions, including, without limitation, representations and
warranties with respect to (x) matters of title to such Other Shareholder's
securities and (y) the due authorization (or capacity) and due and valid
execution and delivery by such Other Shareholder of documentation in respect of
the Required Sale, as those executed by the initial Section 10 Seller; provided,
however, such Other Shareholder shall not be required to make any other
representations and warranties and shall not be required to join in any
indemnity other than with respect to such Other Shareholder's specific
representations and warranties described above, or be a party to any non-compete
or similar provision. The Required Sale shall be consummated at the offices of
the Corporation on the Required Sale Closing Date. The Corporation will bear all
costs and expenses incurred in connection with the Required Sale to the extent
such costs and expenses are not otherwise paid by the Acquiror. If the Required
Sale shall not be consummated, all of the provisions of this Section 10 shall
then be reinstated.

     SECTION 11. Representations and Warranties.

     (a) Each of the parties hereto represents and warrants to the other parties
hereto as follows:

                 (i) It has full power and authority to execute, deliver and
         perform its obligations under this Agreement;

                (ii) This Agreement has been duly and validly authorized,
         executed and delivered by it, and constitutes a valid and binding
         obligation of it, enforceable against it 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;

               (iii) The execution, delivery and performance of this Agreement
         by it does not (A) violate, conflict with, or constitute a breach of or
         default under its organiza-

<PAGE>

                                      -29-

         tional documents, if any, or any material agreement to which it is a
         party or by which it is bound or (B) violate any law, regulation,
         order, writ, judgment, injunction or decree applicable to it;

                (iv) No consent or approval of, or filing with, any governmental
         or regulatory body is required to be obtained or made by it in
         connection with the transactions contemplated hereby (except those
         which have been made or obtained); and

                 (v) It is not a party to any contract or agreement which is
         inconsistent with the rights of any party hereunder or otherwise
         conflicts with the provisions hereof.

     (b) Each of the Shareholders represents and warrants as follows:

                 (i) Schedule 11(b)(i) hereto sets forth a list of all
         securities of the Corporation (including, without limitation, capital
         shares, convertible securities, debentures, etc.) held of record or
         beneficially owned by it immediately after the Closing; and

                (ii) Except for this Agreement, the Purchase Agreement, the
         Registration Rights Agreement of even date herewith or as set forth on
         Schedule 11(b)(ii) hereto, it is not a party to any contract or
         agreement, written or oral, (A) with respect to Common Shares, Common
         Share Equivalents or other equity securities of the Corporation
         (including, without limitation, any voting agreement, voting trust,
         Shareholder's agreement, registration rights agreement, etc.) or (B)
         otherwise with or relating to the Corporation.

     SECTION 12. Certain Covenants.

     12.1. Protection of Investors. The Corporation and the Shareholders each
agree that all of the following provisions of this Section 12 are for the
exclusive benefit, protection and enjoyment of each of the Investors (severally
and not jointly) and their permitted successors and assigns, and may only be
enforced or remedied by the Investors (severally and not jointly) and their
permitted successors and assigns.

     12.2. Additional Issuances. The Corporation agrees that, anything contained
herein to the contrary notwithstanding, (a) any Person to which Shares are
issued in a Private Sale after the date hereof and who after giving effect to
such Issuance, would own more than 1% in the aggregate of the then total
outstanding Shares or voting power (on either a primary or fully diluted basis),
or (b) any Person to which Shares are issued and who is or becomes a Key
Shareholder of the Corporation, shall upon consummation of, and as a condition
to, such

<PAGE>

                                      -30-

Issuance execute, and agree to be bound by the terms of, this Agreement and
shall thereafter be deemed a Shareholder for all purposes of this Agreement.

     12.3. Ledcor Roll-Up Transactions. Ledcor and the Corporation shall
consummate the transaction contemplated by the Ledcor Roll-Up Agreement in
accordance with its terms. Neither Ledcor nor the Corporation shall amend,
modify or waive, temporarily or permanently, any of the terms or provisions of
the Ledcor Roll-Up Agreement in any manner adverse to the Corporation or the
Investors without the unanimous written consent of the Investors.

     12.4. Ledcor Roll-Up Failure. In the event that the Corporation shall not
have consummated the transactions contemplated by the Ledcor Roll-Up Agreement
on or before the earliest of (w) the date of the pricing of an IPO, (x) the
earliest of the date of any corporate action approving, the record date of, or
the effective date of, a transaction of the nature referred to in Section
9(b)(i) (without giving effect to the proviso thereto), (y) the date any Section
5 Notice is given by WFH, Ledcor or their Affiliates (other than a Sale pursuant
to Section 3(a)(ii)), or (z) September 30, 1999, in consideration for the
issuance of 4,500,000 Common Shares in accordance with the terms of the Ledcor
Roll-Up Agreement (a "Ledcor Roll-Up Failure"), each Investor (a "Section 12.4
Seller") shall have the absolute right at any time thereafter by giving written
notice to Ledcor and each other Investor (the "Put Notice"), to sell to Ledcor
all, but not less than all, Shares held by such Investor (the "Section 12.4
Shares") for their aggregate Liquidation Value (the "Put Price"). Upon delivery
of the Put Notice pursuant to this Section 12.4 (the date of such delivery, the
"Put Date"), Ledcor will be obligated to purchase from the Section 12.4 Seller
and each other Investor who shall elect to put its Shares to Ledcor pursuant to
this Section 12.4 prior to the Purchase Date (as defined below) and each Section
12.4 Seller will be obligated to sell to Ledcor all, but not less than all, of
the Section 12.4 Shares, in exchange for payment of the Put Price. The
consummation of the purchase of the Section 12.4 Shares will take place on a
date (the "Purchase Date") mutually agreeable to the parties but in any event
not later than 15 days following the Put Date. On the Purchase Date, Ledcor
shall pay to each Section 12.4 Seller the Put Price by wire transfer of
immediately available funds to such account(s) as are specified in writing in
advance of the Purchase Date by each Section 12.4 Seller against delivery to
Ledcor of the Section 12.4 Shares, free and clear of all Encumbrances other than
this Agreement. The election of an Investor to sell its Shares to Ledcor under
this Section 12.4 shall not restrict or limit the right of any other Investor
who does not join in such Sale from subsequently exercising its rights under
this Section 12.4. The provisions of Section 3, Section 4 and Section 5 shall
not apply to a Sale of Shares pursuant to this Section 12.4.

     12.5. Access to Records. From and after the Closing and so long as an
Investor or its Permitted Assigns continue to hold any Series A Non-Voting
Preferred Shares,

<PAGE>

                                      -31-

Series B Voting Preferred Shares or Common Shares, the Corporation shall, and
shall cause each of its Subsidiaries to, afford such Investor or its Permitted
Assigns (as applicable) and their respective employees, counsel and other
authorized representatives access, during normal business hours, upon reasonable
advance notice, with due regard to its ongoing operations, to all of its books,
records and properties, and to all of its officers and employees for any
reasonable purpose whatsoever.

     12.6. Financial Reports. From and after the Closing and provided an
Investor or its Permitted Assigns holds any Series A Non-Voting Preferred
Shares, Series B Voting Preferred Shares or Common Shares, the Corporation
agrees to furnish to such Investor or its Permitted Assigns (as applicable) the
following:

     (a) Within 30 days after the end of each fiscal month, (i) internal monthly
financial and operating statements for such month ("Monthly Financials")
prepared by the Corporation under the direction of a senior executive officer of
the Corporation.

     (b) Within 45 days after the end of each quarterly fiscal period, (i)
unaudited balance sheets and an income statement as of the end of such period,
together with statements of retained earnings and cash flow for such period
("Quarterly Financials") and a letter or memorandum discussing the summary
financial information for such period and setting forth a comparison by
reasonable categories of such financial information to the comparable figures
for the prior year and a reasonable explanation of any differences (a
"Management Letter") (with the Management's Discussion and Analysis of Financial
Condition and Results of Operation section of any Form 10-Q or Form 10-K or
similar document filed with the United States Securities and Exchange Commission
for such quarter being sufficient to satisfy this requirement), plus (ii) a
statement certified by the Chief Financial Officer of the Corporation,
certifying that the financial position and results of operations of the
Corporation for such period as presented in the Quarterly Financials are
presented fairly and have been prepared in accordance with GAAP (subject to
normal year-end adjustments and the absence of footnotes) consistently applied.

     (c) Within 120 days (or such lesser period as is either (x) required under
applicable laws for similar disclosure to any securityholders of the Corporation
or (y) in which similar disclosure is provided to other financing sources of the
Corporation, including, without limitation, any banks) after the end of each
fiscal year, commencing with the first fiscal year ending after the Closing, (i)
audited balance sheets and an income statement as of the end of such fiscal
year, together with statements of retained earnings and cash flow for such
fiscal year, all in reasonable detail and certified by a recognized national
firm of independent accountants selected by the Board as presenting fairly the
financial position and results of op-

<PAGE>
                                      -32-

erations of the Corporation and as having been prepared in accordance with GAAP
consistently applied, including their opinion thereon, (ii) the accounting
firm's management letter and (iii) a Management Letter (with the Management's
Discussion and Analysis of Financial Condition and Results of Operation section
of any Form 10-Q or Form 10-K or similar document filed with the United States
Securities and Exchange Commission for such quarter being sufficient to satisfy
this requirement).

     (d) Promptly upon becoming available, (i) copies of all financial
statements, reports, press releases, notices, proxy statements and other
documents sent by the Corporation to its shareholders or released to the public
and copies of all regular and periodic reports, if any, filed by the Corporation
with any Canadian or non-Canadian securities regulatory agency or any securities
exchange and (ii) any other financial or other information available to
management of the Corporation as any Investors shall have reasonably requested
on a timely basis.

     (e) If for any period the Corporation shall have any subsidiary or
subsidiaries whose accounts are consolidated with those of the Corporation,
then, in respect of such period, the financial statements and information
delivered pursuant to the foregoing paragraphs (a), (b) and (c) of this Section
12.6 shall be the consolidated and consolidating financial statements of the
Corporation and all such consolidated subsidiaries.

     (f) At least 30 days but not more than 90 days prior to the beginning of
each fiscal year, an annual budget prepared on a monthly basis for the
Corporation for such fiscal year (displaying anticipated statements of income
and cash flows and balance sheets), and promptly upon preparation thereof any
other significant budgets prepared by the Corporation and any revisions of such
annual or other budgets, and, provided that an Investor make request therefor,
within 30 days after any monthly period in which there is a material adverse
deviation from the annual budget, a statement explaining the deviation and what
actions the Corporation has taken and proposes to take with respect thereto.

     (g) Promptly (but in any event within seven Business Days) after the
discovery or receipt of notice of (i) any default under any material agreement
to which the Corporation and/or any of its Subsidiaries is a party, which
default could have a Material Adverse Effect on the Corporation or any of its
Subsidiaries, (ii) any other event which could reasonably be expected to have a
Material Adverse Effect (including, without limitation, the filing of any
material litigation against the Corporation or any of its Subsidiaries or the
existence of any dispute with any Person which involves a reasonable likelihood
of such litigation being commenced) a statement describing the foregoing in
reasonable detail.

<PAGE>
                                      -33-

     (h) Promptly, any information or financial data the Corporation provides to
its lenders or other sources of financing, which, if certified by an officer of
the Corporation, shall be certified to the Investors on no less favorable terms.

     12.7. System of Accounting. The books of account and other financial and
corporate records of the Corporation and its Subsidiaries shall be maintained in
accordance with good business and accounting practices and the financial
condition of the Corporation shall be accurately reflected in the financial
statements referred to in this Section.

     12.8. Compliance with Laws. The Corporation shall, and shall cause each of
its Subsidiaries to, comply with all applicable laws, rules regulations and
orders except where failure to comply would not have a Material Adverse Affect.

     12.9. Insurance. The Corporation shall, and shall cause each of its
Subsidiaries to, keep its assets and those of its Subsidiaries which are of an
insurable character, if any, insured by financially sound and reputable insurers
against loss or damage by fire, extended coverage and other hazards and risks
and liability to Persons and property to the extent and in the manner customary
for companies in similar businesses similarly situated.

     12.10. Licenses and Permits. The Corporation shall, and shall cause each of
its Subsidiaries to, use its best efforts to obtain all Canadian and
non-Canadian federal, provincial, state and local governmental licenses,
permits, authorizations, consents, waivers, certificates and approvals material
to and necessary in the conduct of their business, including the Hibernia
Project.

     12.11. D&O. The Corporation shall maintain after the Closing the directors'
and officers' liability insurance described in Section 6.2(k) of the Purchase
Agreement.

     12.12. Disclosure of Investment. The Corporation, on the one hand, and each
of the Investors, on the other hand, agrees that it will not use in advertising
or publicity the name of any party hereto, or any partner or employee of such
party hereto or any of its respective affiliates, or any trade name, trademark,
trade device, service mark, symbol or any abbreviation, contraction or
simulation thereof owned by the other party hereto or any of its respective
affiliates, in either case without the prior written consent of such party
(except as such release or announcement may be required by applicable securities
law or the rules or regulations of the United States Securities and Exchange
Commission, in which case the party required to make the release or announcement
shall make reasonable best efforts to allow each other party reasonable time to
comment on such release or announcement in advance of such issuance). From and
after the date hereof, neither the Corporation nor any of its Subsidiaries will
represent, directly or indirectly, that any product or any service provided by
the Corporation has been approved or endorsed by any Investor without the prior
written consent of all of

<PAGE>
                                      -34-

the Investors. The Corporation and each of the Investors further agree that,
from the date hereof through the Closing Date, no public release or announcement
concerning the transactions contemplated hereby shall be issued by any party
without the prior consent of the Corporation and each Investor (which consent
shall not be unreasonably withheld), except as such release or announcement may
be required by applicable securities law or the rules or regulations of the
United States Securities and Exchange Commission, in which case the party
required to make the release or announcement shall make reasonable best efforts
to allow each other party reasonable time to comment on such release or
announcement in advance of such issuance.

     12.13. Investor Consent for Conversion. WFH agrees that it will not convert
any Class B Subordinate Voting Shares held by WFH into Series A Non-Voting
Preferred Shares without the consent of each of the Investors.

     12.14. Restrictions on Conversions into Voting Shares. (a) Each of the
Investors agrees that it may convert any Series A Non-Voting Preferred Shares
into Series B Voting Preferred Shares or any Class A Non-Voting Shares into
Class B Subordinate Voting Shares only concurrently with or after (1) any
underwritten public offering of shares with voting rights providing gross
aggregate proceeds to the Corporation or any selling shareholders of at least
$150,000,000 before deducting underwriting discounts and commissions and
offering expenses or (2) the Corporation has issued, paid any dividend of, or
made any distribution of, any shares with voting rights other than the Class B
Subordinate Voting Shares issued and outstanding as of the Initial Issue Date
and the Class C Multiple Voting Shares issued pursuant to the Ledcor Roll-Up
Agreement. The Corporation will provide to the Investors timely information
regarding the transactions referred to in clause (1) or (2) of the preceding
sentence in order to permit the Investors timely to convert Shares in accordance
with this Section 12.14 and the terms of such Shares. Notwithstanding the
foregoing, following the elimination of the restrictions on the ownership of
voting shares and on the control in fact of the Corporation by non-Canadians
under the Telecommunications Act (Canada) and the rules and regulations
promulgated thereunder, there shall be no restrictions on the conversion by the
Investors of any Series A Non-Voting Preferred Shares into Series B Voting
Preferred Shares or any Class A Non-Voting Shares into Class B Subordinate
Voting Shares.

     (b) (i) The Corporation shall not issue any capital shares or equity
securities which fall within the definition of "voting shares" in the
Telecommunications Act (Canada) and the Ownership Regulations (as defined below)
except Sales of Shares pursuant to the Purchase Agreement or the Ledcor Roll-Up
Agreement.

     (ii) WFH shall not sell, assign or otherwise dispose of any capital shares
or equity securities which fall within the definition of "voting shares" in the
Telecommunications Act (Canada) and the Ownership Regulations pursuant to a
Public Sale or in transaction pur-

<PAGE>

                                      -35-

suant to Rule 144A of the Securities Act (or an analogous provision of Canadian
Securities Laws).

     (iii) This Section 12.14(b) shall terminate following (x) the elimination
of the restrictions on the ownership of voting shares and on the control in fact
of the Corporation by non-Canadians under the Telecommunications Act (Canada)
and the Ownership Regulations promulgated thereunder or (y) any underwritten
public offering of Shares that do not fall with the definition of "voting
shares" in the Telecommunications Act (Canada) and the Ownership Regulations
providing gross aggregate proceeds to the Corporation of at least $150,000,000
before deducting underwriting discounts and commissions and offering
commissions.

     (c) 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 any of the Investors elect to convert their non-voting
Shares into voting Shares, such Investor and (upon written request by such
Investor) the Corporation agree to (i) 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 such Investors and the Corporation
under the HSR Act concerning the conversion transaction and (ii) 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. The Company agrees to
request, and to cooperate with any Investor in requesting, early termination of
any applicable waiting period under the HSR Act.

     12.15. CEO Appointment Procedure.

     At least 10 days before the Board shall hold a meeting (the "Preliminary
CEO Appointment Meeting") to consider the appointment of a chief executive
officer (or the functional equivalent) of the Corporation ("CEO"), the
Corporation shall provide to each Investor the name of such individual and
biographical information as contemplated by Item 401 of Regulation S-K under the
Securities Act. If at, or prior to the Preliminary CEO Appointment Meeting, a
Supermajority of Investors indicate by written notice to the Corporation that
they disapprove of the appointment of the proposed CEO (a "Preliminary CEO
Disapproval"), then (i) no formal vote shall be taken on the appointment of the
proposed CEO at the Preliminary CEO Appointment Meeting and (ii) the Corporation
shall not hire the proposed CEO unless and until the Board passes a resolution
appointing the proposed CEO at a meeting of the Board (the "CEO Effective
Appointment Meeting") subsequent to the date the Preliminary CEO Appointment
Meeting is originally scheduled to be held, which meeting shall be held not
earlier than the tenth day following the date the Preliminary CEO Appointment
Meeting is

<PAGE>

                                      -36-

originally scheduled to be held. If there is not a Preliminary CEO Disapproval,
then this Section 12.15 shall have no further application with respect to the
proposed CEO (but shall be applicable to any other individual proposed as CEO).
If, within the 15 day period commencing on the first day immediately following
the date the Preliminary CEO Appointment Meeting is originally scheduled to be
held, either (i) a CEO Effective Appointment Meeting does not occur, or (ii) the
Corporation does not hire the proposed CEO, then the Corporation may not hire
such proposed CEO or any other proposed CEO except with renewed compliance with
all of the terms of this Section 12.15. The provisions of this Section 12.15
shall terminate upon an IPO resulting in at least $150,000,000 of gross
aggregate proceeds to the Corporation before deducting underwriting discounts
and commissions and offering expenses.

     12.16. Ledcor Entities Regulatory Covenants.

     (a) Ledcor represents and warrants, and agrees that during the period prior
to the completion of the transaction contemplated by the Ledcor Roll-Up
Agreement, Ledcor shall, and shall cause Ledcor Industries Limited to ensure
that:

                 (i) no Ledcor Entity is in violation of any judgment, decree,
         order, writ, law, statute, rule, directive or regulation rendered or
         enacted in Canada or any non-Canadian jurisdiction respecting
         telecommunications and the regulation within Canada of
         "telecommunications common carriers" (as defined in the
         Telecommunications Act) or in any non-Canadian jurisdiction respecting
         telecommunications applicable to any of the Ledcor Entities, or, to the
         knowledge of Ledcor, any published interpretation or policy relating
         thereto applicable to any Ledcor Entity. Except as disclosed in
         Schedule 12.16(a)(i), no notices, reports or other filings are required
         to be made by any Ledcor Entity during the period prior to the
         completion of the transaction contemplated by the Ledcor Roll-Up
         Agreement, with, nor are any consents, registrations, applications and
         Permits required to be obtained by any Ledcor Entity from, any court or
         governmental agency or other regulatory body or tribunal or similar
         entity pursuant to Canadian or non-Canadian telecommunications and
         radiocommunication regulatory law in connection with the completion of
         the transaction contemplated by the Ledcor Roll-Up Agreement. The
         development, implementation, construction or operation of the
         telecommunications assets of Ledcor Industries Limited does not
         conflict with and will not result in a breach or violation of any of
         the Communications Statutes (as defined below) or existing regulations
         thereunder except breaches or violations which may be remedied by
         Ledcor at immaterial expense and which would not otherwise have a
         Material Adverse Effect on the WFI Entities taken as a whole or Ledcor.
         For the purposes of this Agreement, "Communications Statutes" means the
         Telecommunications Act, the Canadian Radio-television and
         Telecommunications Commission Act, or other statutes of Canada or any
         non-Canadian jurisdiction specifically relating to the regulation of
         the telecommunications industry within Canada or any non-Canadian
         jurisdiction (including for this purpose the orders, rules,
         regulations, directives, decisions, notices and policies promulgated
         pursuant to such statutes, and applicable statutes or regulations, if
         any, of any province of Canada or State of the U.S. specifically
         relating to the

<PAGE>

                                      -37-

         regulation of the Canadian or U.S. telecommunications industry and the
         orders, rules, regulations, directives, decisions, notices and policies
         promulgated thereunder);.

                (ii) (A) Ledcor Industries Limited will remain eligible to
         operate as a telecommunications common carrier in Canada, as defined
         under and in accordance with the Telecommunications Act and the
         Canadian Telecommunications Common Carrier Ownership and Control
         Regulations (the "Ownership Regulations"); (B) Ledcor Industries
         Limited will not violate the prohibition contained in subsection 16(4)
         of the Telecommunications Act against operating in Canada as a
         telecommunications common carrier when ineligible to do so; and (C)
         control of Ledcor Industries Limited will not be exercised by any
         person(s) that is (are) not Canadian, in accordance with the meanings
         ascribed to the term "control" under the Telecommunications Act and the
         term "Canadian" under the Ownership Regulations; and

               (iii) (A) not less than eighty percent of the members of the
         board of directors of Ledcor Industries Limited will continue to be
         individual Canadians, as defined under the Ownership Regulations; (B)
         Canadians, as defined under the Ownership Regulations, will continue to
         beneficially own directly or indirectly, in the aggregate and otherwise
         than by way of security only, not less than eighty percent of the
         issued and outstanding voting shares, as defined under the Ownership
         Regulations, of Ledcor Industries Limited; (C) Ledcor in respect of its
         ownership of and control over Ledcor Industries Limited will remain a
         carrier holding corporation, as defined under the Ownership
         Regulations; (D) Ledcor will continue to be a carrier holding
         corporation that is a qualified corporation, as defined under the
         Ownership Regulations; and (E) Ledcor Industries Limited will not be
         controlled in fact by non-Canadians.

     (b) With the exception of Ledcor Industries Limited and Worldwide Fiber
(F.O.T.S.) Ltd., no other subsidiary of Ledcor operates in Canada as a
telecommunications common carrier as that term is defined in the
Telecommunications Act.

     (c) During the period prior to the completion of the transaction
contemplated by the Ledcor Roll-Up Agreement, all Ledcor Entities will remain in
compliance with all federal, state and local telecommunications laws, rules,
regulations and policies in the United States to which they are subject,
including the Communications Act of 1934, as amended by the Telecommunications
Act of 1996 (the "Communications Act") or to any

<PAGE>

                                      -38-

rules, regulations and policies of the FCC related hereto, except where failure
to comply would not have a Material Adverse Effect on the WFI Entities taken as
a whole or Ledcor.

     (d) Except as set forth in Schedule 12.16(d), each of the Ledcor Entities
currently holds all licenses, permits, certificates, waivers, consents,
franchises, orders, approvals and authorizations issuable under the
Telecommunications Act or other similar Canadian or U.S. statutes which are
required for the development, implementation and operation of each Ledcor Entity
business as it is currently being conducted (collectively, the
"Telecommunications Licenses"). Each Ledcor Entity is in material compliance
with each Telecommunications License held by it. The Telecommunications Licenses
held by each Ledcor Entity contain no restrictions or conditions attaching to
the Telecommunications Licenses, that are (or would be) materially burdensome to
the Ledcor Entities and there are no other conditions attaching to the
Telecommunications Licenses.

     (e) Except as set forth in Schedule 12.16(e), each of the Ledcor Entities
has timely filed all renewal applications with respect to all Telecommunications
Licenses held by any of them and no protests or competing applications have been
filed that are either available to the Ledcor Entities or of which the Ledcor
Entities have knowledge with respect to such renewal applications and nothing
has come to the attention of any of the Ledcor Entities that would lead them to
conclude that such renewal applications will not be granted by the appropriate
regulatory agency or body in the ordinary course, and the Ledcor Entities are
authorized under the Communications Statutes and the rules and regulations
promulgated thereunder to continue to provide the services which are the subject
of such renewal applications during the pendency thereof.

     (f) The telecommunications business of the Ledcor Entities is not regulated
by any federal, state or provincial utility or rate-regulating commission, other
than the CRTC and Industry Canada, in the areas in which any Ledcor Entity
conducts or proposes to conduct such business, and the Ledcor Entities are not,
and based on existing regulations will not be, required to obtain any
Telecommunications License from any such utility or rate-regulating commission,
other than the CRTC and Industry Canada, in any such state or province.

     (g) Ledcor shall cause Ledcor Industries Limited to take all necessary
actions by December 31, 1999 to, as soon as possible, assign and transfer
(including obtaining the approval of Industry Canada to such assignment) to the
Corporation or a wholly-owned Subsidiary of the Corporation all right, title and
interest of Ledcor Industries Limited in, to and under the International
Submarine Cable License issued by Industry Canada to Ledcor Industries Limited
and 3477967 Canada Inc. effective November 1, 1998 (the "ISCL License") pursuant
to the International Submarine Cable Licenses Regulations, in respect of a fiber
optic international submarine cable between the cable stations at Cordova Bay,
British Columbia and Point Roberts, Washington, and between the cable stations
located at Fleming

<PAGE>

                                      -39-

Bay, British Columbia and Whidbey Island, Washington, as more fully described in
the annexes to the ISCL License.

     12.17. Underwritten Offering-Related Lock-Up of Shares.

     If requested in writing by the managing underwriter(s), if any, of the
first IPO by the Corporation of equity securities (or securities convertible
into or exchangeable for equity securities) of the Corporation, each Shareholder
holding Shares agrees not to effect any Sale or distribution, including, without
limitation, any sale pursuant to Canadian Securities Laws or Rule 144 under the
U.S. Securities Act, of Shares (other than as part of such underwritten public
offering) during the time period requested by the managing underwriter(s), if
any, not to exceed 180 days. This Section 12.17 does not apply to any subsequent
IPO.

     SECTION 13. [Intentionally omitted]

     SECTION 14. Reservation of Common Shares; Conversion.

     (a) The Corporation shall at all times reserve and keep available out of
its authorized but unissued capital (i) sufficient Common Shares to permit
conversion of all outstanding Series A Non-Voting Preferred Shares and any
outstanding Series B Voting Preferred Shares and (ii) sufficient Preferred
Shares to satisfy the Corporation's obligation to issue additional Series A
Non-Voting Preferred Shares to the Investors in accordance with the terms of the
Purchase Agreement and to permit the conversion of the Series A Non-Voting
Preferred Shares into Series B Voting Preferred Shares. The Corporation
represents, warrants and agrees that all Common Shares and Preferred Shares
which are so issuable shall, when issued, be duly and validly issued, fully paid
and nonassessable and free from all taxes, liens, encumbrances and charges.
Ledcor, WFH and the Corporation shall take all such actions as may be necessary,
including adoption of amendments to the Articles of Continuance, to assure that
all such Common Shares may be so issued without violation of any applicable law
or governmental regulation or the Articles of Continuance of the Corporation or
any requirements of any securities exchange upon which such Common Shares may be
listed (except for official notice of issuance which shall be immediately
transmitted by the Corporation upon issuance).

     (b) The Corporation agrees that, upon the request of any of the Investors,
it will convert any Non-Voting Shares held by such Investor into Voting Shares
of the same class unless in the reasonable opinion of the Corporation such
conversion would violate the statutory restrictions on "control" as defined in
the Telecommunications Act by "non-Canadians".

<PAGE>
                                      -40-

     SECTION 15. Confidentiality.

     (a) The Investors and each of the other Shareholders severally (the
"Confidants") recognize that certain non-public, confidential, proprietary
information ("Confidential Information") may be furnished orally or in writing
to the Confidants by, or at the direction of, the Corporation. The Confidants
agree not to disclose any Confidential Information to any Person except to a
Person who is advised of the Confidant's obligations under this Section 15 and
who is (i) a partner, managing director, director, officer or employee of a
Confidant or a Confidant's Affiliate who is involved in the Confidant's
investment in the Corporation, who is consulted with respect to such investment,
or who a Confidant determines otherwise needs to know such information, or (ii)
a Person acting as an advisor to a Confidant in connection with such investment,
except with the consent of the Corporation or pursuant to a subpoena, civil
investigative demand (or similar process), order, statute, rule or other legal
requirement promulgated or imposed by a court or by a judicial, regulatory,
self-regulatory or legislative body, organization, agency or committee or
otherwise in connection with any judicial or administrative proceeding
(including, in response to oral questions, interrogatories or requests for
information or documents) in which a Confidant or Investor Affiliate is
involved. The Confidants acknowledge that the United States securities laws
prohibit any person who is in possession of material, non-public information
regarding an issuer from purchasing or selling securities of such issuer or from
communicating such information to any other person under circumstances in which
it is reasonably foreseeable that such person is likely to purchase or sell such
securities.

     (b) If Confidential Information is to be disclosed pursuant to the
foregoing paragraph, the Confidant will, to the extent practicable, promptly
notify the Corporation thereof and cooperate with the Corporation to the extent
legally permissible if it should seek to obtain an order or other reliable
assurance that confidential treatment will be accorded to designated portions of
the Confidential Information. The Confidants shall be entitled to periodic
reimbursement from the Corporation for expenses incurred by it or any Investor
Affiliate, including the fees and expenses of counsel, in connection with any
action taken pursuant to this paragraph.

     (c) Information will not be deemed Confidential Information if it (i) was
already available to, or in the possession of, the Confidant prior to its
disclosure by, or at the direction of, the Corporation, (ii) is or becomes
available in the public domain on or after the date hereof (other than as a
result of a disclosure by any Confidant or any of its advisors), or (iii) is
acquired from a person who is not known by a Confidant to be in breach of an
obligation of confidentiality to the Corporation.

<PAGE>
                                      -41-

     SECTION 16. Specific Performance; Injunction.

     (a) The parties agree that it is impossible to determine the monetary
damages which would accrue to the Corporation or any Shareholder or his personal
representative by reason of the failure of any Other Shareholder or the
Corporation to perform any of his or its obligations under this Agreement
requiring the performance of an act other than the payment of money only. Each
Shareholder shall be entitled to enforce its rights under this Agreement
specifically and to exercise all other rights existing in their favor. The
parties hereto agree and acknowledge that money damages may not be an adequate
remedy for any breach of the provisions of this Agreement and that each party
may in its sole discretion apply to any court of law or equity of competent
jurisdiction for specific performance and/or injunctive relief (without posting
a bond or other security) in order to enforce or prevent any violation of the
provisions of this Agreement.

     (b) In the event of a breach or threatened breach by a Shareholder of any
of the provisions of this Agreement, the Corporation, and the remaining
Shareholders shall be entitled to an injunction restraining such Shareholder
from any such breach. The availability of these remedies shall not prohibit the
Corporation from pursuing any other remedies for such breach or threatened
breach, including the recovery of damages from the Shareholder.

     SECTION 17. No Inconsistent AgreementsNeither the Corporation nor any
Shareholder shall take any action or enter into any agreement which is
inconsistent with the rights of any party hereunder or otherwise conflicts with
the provisions hereof.

     SECTION 18. Further Assurances.

     (a) At any time or from time to time after the date hereof, the parties
agree to cooperate with each other, and at the request of any other party, to
execute and deliver any further instruments or documents and to take all such
further action as the other party 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.

     (b) At any time or from time to time, the parties agree to take all action,
including, without limitation, voting to approve any amendment to the Articles
of Continuance, or the By-Laws of the Corporation required to increase the
authorized number of Common Shares or Preferred Shares, if necessary, to permit
the issuance of all Shares contemplated under the Purchase Agreement, and the
conversion of all outstanding Series A Non-Voting Preferred Shares or
outstanding Series B Voting Preferred Shares.

<PAGE>
                                      -42-

     SECTION 19. Duration of Agreement. The rights and obligations of a
Shareholder under this Agreement shall terminate at such time as such
Shareholder no longer holds any Shares. This Agreement shall terminate upon the
consummation of a Qualified IPO except that the terms of Section 8, Sections
12.1, 12.3, 12.4, 12.7, 12.8, 12.9, 12.10, 12.11, 12.12, 12.13, 12.14, 12.15,
12.16, 12.17, Sections 14 through Section 32 (inclusive) shall survive until, by
their respective terms, they are no longer operative. The terms of Sections 12.5
and 12.6 shall terminate upon the consummation of an IPO.

     SECTION 20. Legends. Each certificate representing Shares shall bear a
legend containing the following words:

                  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
         SHAREHOLDERS AGREEMENT, DATED AS OF SEPTEMBER 9, 1999, 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: (i) when such Shares are transferred in an
IPO; (ii) when such Shares are transferred pursuant to Rule 144 under the
Securities Act; or (iii) when such Shares are transferred in any other
transaction if the seller delivers to the Corporation an opinion of its counsel,
which counsel and opinion shall be reasonably satisfactory to the Corporation to
the effect that such legend is no longer necessary in order to protect the
Corporation against a violation by it of the Securities Laws upon any sale or
other disposition of such Shares without registration thereunder. The
requirement that the above legend regarding the Shareholder Agreement be placed
upon certificates evidencing any such securities shall cease and terminate upon
the termination of this Agreement. Upon the occurrence of any event requiring
the removal of a legend hereunder, the Corporation, upon the surrender of
certificates containing such legend, shall, at its own expense, deliver to the
holder of any such Shares as to which the requirement

<PAGE>

                                      -43-

for such legend shall have terminated, one or more new certificates evidencing
such Shares not bearing such legend.

     SECTION 21. Contractual Management Rights. The Corporation and each of the
Shareholders acknowledge that the provisions of this Agreement are intended,
among other things, to provide DLJ, GSCP and Providence with "contractual
management rights" within the meaning of the Employee Retirement Income Security
Act of 1974, as amended, and the regulations promulgated thereunder.

     SECTION 22. Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid, but
if any provision of this Agreement is held to be invalid or unenforceable in any
respect, such invalidity or unenforceability shall not render invalid or
unenforceable any other provision of this Agreement. In the event that pursuant
to any regulatory authority or regulation, the Corporation is required to make
any revisions or modifications to any provision of this Agreement or any of the
other Documents, the parties agree to enter into good faith negotiations and
make revisions or modifications, to the extent possible, that are in compliance
with such regulation or the rules of such regulatory authority, and which are
designed to accomplish the purposes of such provision to be revised or modified.

     SECTION 23. Governing Law; Waiver of Jury Trial. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without giving effect to the principles of conflicts of law, except for the
provisions of Section 8 and the provision in the last sentence of Section 10(c)
permitting a Board determination regarding a competing transaction to a Required
Sale, which shall be governed by and construed in accordance with the laws of
the Province of British Columbia and the federal law of Canada. Each of the
parties hereto hereby irrevocably and unconditionally consents to submit to the
exclusive jurisdiction of the courts of the State of New York and of the United
States of America, in each case located in the County of New York, for any
action, proceeding or investigation in any court or before any governmental
authority ("Litigation") arising out of or relating to this Agreement and the
transactions contemplated hereby (and agrees not to commence any Litigation
relating thereto except in such courts), and further agrees that service of any
process, summons, notice or document by facsimile or registered mail to its
respective address set forth in this Agreement shall be effective service of
process for any Litigation brought against it in any such court. Each of the
parties hereto hereby irrevocably and unconditionally waives any objection to
the laying of venue of any Litigation arising out of this Agreement or the
transactions contemplated hereby in the courts of the State of New York and of
the United States of America, in each case located in the County of New York,
and hereby further irrevocably and

<PAGE>

                                      -44-

unconditionally waives and agrees not to plead or claim in any such court that
any such Litigation brought in any such court has been brought in an
inconvenient forum. Each of the parties irrevocably and unconditionally waives,
to the fullest extent permitted by applicable law, any and all rights to trial
by jury in connection with any Litigation arising out of or relating to this
Agreement or the transactions contemplated hereby.

     SECTION 24. Successors and Assigns. This Agreement shall inure to the
benefit of and shall be binding upon the parties hereto and their respective
successors, assigns, heirs and personal representatives. Except pursuant to a
Sale of Shares permitted by Section 3, no Shareholder shall have the right to
assign its rights and obligations under this Agreement without the consent of
the other Shareholders. No Shareholder shall have the right to assign its rights
under Section 7 or 8 of this Agreement without the consent of the Corporation
and each other Investor. Upon any such assignment, such assignee shall have and
be able to exercise all rights of the assigning Shareholder. The parties
acknowledge that, subject to compliance with applicable securities laws, each
Investor may transfer and assign all or a part of its rights and obligations
under this Agreement (including, for the avoidance of doubt, under Section 7 or
8) to one or more other partnerships, corporations, trusts or other
organizations which have been created by or are controlled by, control or are
under common control with such Investor or one or more of the then current
partners, members or other equity holders of such Investor (the "Investor
Affiliates"), without the consent of the Corporation or any other Shareholder.
Notwithstanding the foregoing, neither the Corporation nor any Person controlled
by the Corporation shall be deemed to be an Investor Affiliate of any Investor
for purposes of this Agreement. Upon any such assignment, the assignee shall
have and be able to exercise all rights of the assigning Shareholder.

     SECTION 25. Notices. All notices, requests, consents and other
communications hereunder to any party shall be deemed to be sufficient if
contained in a written instrument delivered in Person or by telecopy, nationally
recognized overnight courier or first class registered or certified mail, return
receipt requested, postage prepaid, addressed to such party at the address set
forth below or such other address as may hereafter be designated in writing by
such party to the other parties:

<PAGE>

                                      -45-

                    (a)  if to the Corporation, to:

                           Worldwide Fiber Inc.
                           #1510-1066 West Hastings Street
                           Vancouver, British Columbia  V6E 3X1
                           Fax:  (604) 681-6822
                           Attention:  Stephen Stow

                           with a copy to:

                           Farris, Vaughan, Wills & Murphy
                           2600 - 700 West Georgia Street
                           Vancouver, British Columbia  V7Y 1B3
                           Fax:  (604)  661-9349
                           Attention:  Cameron G. Belsher

                           and

                           Cahill Gordon & Reindel
                           Eighty Pine Street
                           New York, New York
                           U.S.A.  10005
                           Fax:  (212) 269-5420
                           Attention:  Roger Andrus

                    (b)  if to DLJ, to:

                           DWF SRL
                           Chancery House
                           High Street
                           Bridgetown, Barbados, West Indies

                           and

                           DWF SRL
                           c/o DLJ Merchant Banking Partners II, L.P.
                           277 Park Avenue
                           New York, New York  10172
                           Fax:  (212) 892-7272
                           Attention:  Andrew Rush

<PAGE>

                                      -46-

                           with a copy to:

                           Latham & Watkins
                           885 Third Avenue, Suite 1000
                           New York, New York 10022-4802
                           Fax:  (212) 751-4864
                           Attention:  Steven Della Rocca

                    (c)  if to any of the GSCP Parties, to:

                           c/o Ernst & Young Services Ltd.
                           P.O. Box 261
                           Bay Street
                           Bridgetown,
                           Barbados, West Indies
                           Fax:  (246) 426-9551
                           Attention:  Carol-Ann Smith

                           and

                           c/o GS Capital Partners III, L.P.
                           85 Broad Street
                           New York, New York  10004
                           Fax:  (212) 902-3000
                           Attention:  Robert R. Gheewalla

                           with a copy to:

                           Fried, Frank, Harris, Shriver & Jacobson
                           One New York Plaza
                           New York, New York  10004
                           Fax:  (212) 859-4000
                           Attention:  Stuart Z. Katz

                           and

                           GS Capital Partners III, L.P.
                           85 Broad Street
                           New York, New York  10004
                           Fax:  (212) 357-5505
                           Attention:  Ben Adler

<PAGE>

                                      -47-

                    (d)  if to Providence, to:

                           Providence Equity Fiber, L.P.
                           50 Kennedy Plaza
                           Providence, Rhode Island  02903
                           Fax:  (401) 751-1790
                           Attention:  Glenn M. Creamer

                           with a copy to:

                           Edwards & Angell, LLP
                           2800 BankBoston Plaza
                           Providence, Rhode Island  02903
                           Fax:  (401) 276-6602
                           Attention:  David K. Duffell

                    (e)  if to Tyco, to:

                           Tyco Group S.A.R.L.
                           2nd Floor
                           6, Avenue Emile Reuter
                           L-2420 Luxembourg
                           Fax:  352-464-350
                           Attention:  Managing Director

                           with a copy to:

                           Tyco Submarine System Ltd.
                           250 Industrial Way West
                           Eatontown, New Jersey  07724
                           Fax:  (732) 578-7803
                           Attention:  General Counsel

                    (f)  if to WFH, to:

                           Worldwide Fiber Holdings Ltd.
                           1000-1066 West Hastings Street
                           Vancouver, British Columbia  V6E 3X1
                           Fax:  (604) 681-6822
                           Attention:  Chief Financial Officer

                           with a copy to:

<PAGE>

                                      -48-

                           McLennan Ross
                           600 West Chambers
                           12220 Stony Plain Road
                           Edmonton, Alberta  T5N 3Y4
                           Fax:  (780) 482-9102
                           Attention:  Rodney R. Neys

                    (g)  if to Ledcor, to:

                           Ledcor Inc.
                           1000-1066 West Hastings Street
                           Vancouver, British Columbia  V6E 3X1
                           Fax:  (604) 681-6650
                           Attention:  David Lede

                           with a copy to:

                           McLennan Ross
                           600 West Chambers
                           12220 Stony Plain Road
                           Edmonton, Alberta  T5N 3Y4
                           Fax:  (780) 482-9102
                           Attention:  Rodney R. Neys

     (h) if to any other Shareholder, to the notice information set forth in
Schedule I hereto.

All such notices, requests, consents and other communications shall be
deemed to have been given when received.

     SECTION 26. Amendments. Unless otherwise set forth in this Agreement, the
terms and provisions of this Agreement may be modified or amended, or any of the
provisions hereof waived, temporarily or permanently, pursuant to the written
consent of the parties hereto.

     SECTION 27. Headings. The headings of the Sections of this Agreement have
been inserted for convenience of reference only and shall not be deemed to be a
part of this Agreement.

<PAGE>

                                      -49-

     SECTION 28. Nouns and Pronouns. Whenever the context requires, any pronouns
used herein shall include the corresponding masculine, feminine or neuter forms,
and the singular form of names and pronouns shall include the plural and
vice-versa.

     SECTION 29. Entire Agreement. This Agreement and the other writings
referred to herein or delivered pursuant hereto which form a part hereof contain
the entire agreement among the parties hereto with respect to the subject matter
hereof and supersede all prior and contemporaneous agreements and understandings
with respect thereto.

     SECTION 30. Counterparts. This Agreement may be executed in any number of
counterparts, and each such counterpart shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement.

     SECTION 31. 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 32. Ledcor Assurances. On the date hereof, Ledcor is a direct party
to this Agreement for purposes of Sections 1, 3(d), 8.4, 12.3, 12.4, 12.16,
12.17 and 16 through 32 (inclusive). Ledcor is also a direct party to this
Agreement as a Shareholder (as such) only if and so long as (whether now or at
any time or from time to time hereafter) it is a holder of Shares. Furthermore,
Ledcor agrees to take all action necessary to cause WFH or any other Affiliates
of Ledcor (with the exception of the Corporation and its Subsidiaries) to fully
perform their respective obligations under this Agreement.

<PAGE>

                                      -50-

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

                               WORLDWIDE FIBER INC.

                               By:  ____________________________________________
                                    Name:
                                    Title:

                               DWF SRL

                               By:  ____________________________________________
                                    Name:
                                    Title:

                               THE GSCP PARTIES:

                               GS CAPITAL PARTNERS III, L.P.

                               By:  GS Advisors III, L.P., its general partner
                                    By:  GS Advisors III, L.L.C., its general
                                         partner

                               By:  ____________________________________________
                                    Name:
                                    Title:

                               GSCP3 WWF (Barbados) SRL

                               By:  ____________________________________________
                                    Name:
                                    Title:

                               WWF (Barbados) SRL

                               By:  ____________________________________________
                                    Name:
                                    Title:

<PAGE>

                                      -51-

                               PROVIDENCE EQUITY FIBER, L.P.

                               By:      Providence Equity Partners III L.P.
                                        its general partner,

                               By:      Providence Equity Partners III L.L.C.
                                        its general partner

                               By:  ____________________________________________
                                    Name:   Glenn M. Creamer
                                    Title:  Member and Managing Director

                               TYCO GROUP S.A.R.L.

                               By:  ____________________________________________
                                    Name:
                                    Title:

                               WORDWIDE FIBER HOLDINGS, LTD.

                               By:  ____________________________________________
                                    Name:
                                    Title:

                               LEDCOR INC.

                               By:  ____________________________________________
                                    Name:
                                    Title:

                                 -----------------------------------------------
                                 MACKENZIE PARTNERS, LLC

                                 -----------------------------------------------
                                 CLIFFORD LEDE

                                 -----------------------------------------------
                                 DAVID LEDE

<PAGE>

                                      -52-

                                 -----------------------------------------------
                                 LARRY OLSEN

                                 -----------------------------------------------
                                 WILLIAM RAMSEY

                                 -----------------------------------------------
                                 RON STEVENSON

                                 -----------------------------------------------
                                 STEPHEN STOW

                                 -----------------------------------------------
                                 JIM VOELKER

<PAGE>

                                  Schedule 1.15

                                Key Shareholders

                                  Clifford Lede

                                  David Lede

                                  Larry Olsen

                                  William Ramsey

                                  Ron Stevenson

                                  Stephen Stow

                                  Jim Voelker

<PAGE>

                                Schedule 3(a)(i)

                           Permitted Assignees of WFH

     A limited partnership (the "LP"), resident in Canada, the general partner
of which shall be a direct or indirect wholly-owned subsidiary of Ledcor and the
limited partners of which shall be the existing shareholders of Ledcor as of the
date hereof, holding substantially the same interest in the LP as such
shareholders hold in Ledcor, except that certain shareholders may have their
interest held by an offshore resident trust whose beneficiary is a charitable
foundation.

<PAGE>

                                Schedule 11(b)(i)

                      Security holdings of each Shareholder

[

                                                                              ]*
----------

*    Material omitted and filed separately with the Securities and Exchange
     Commission pursuant to a request for confidential treatment under Rule 406.

<PAGE>

                               Schedule 11(b)(ii)

                    Agreements relating to security holdings
                               of each Shareholder

1.   Option agreements pursuant to the 1998 Employee Long Term Incentive and
     Share Award Plan.

2.   WFH Share Purchase Agreements.

<PAGE>

                                 Schedule 12.16

                            Ledcor Regulatory Matters

1.   The Application by Ledcor under Part VII of the Telecommunications Act
     (Canada) involving the City of Vancouver.

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