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EXHIBIT 10.36

                              ISLAND PACIFIC, INC.

                       CODE OF ETHICS AND BUSINESS CONDUCT
                      FOR EMPLOYEES, OFFICERS AND DIRECTORS

Island Pacific, Inc. and its subsidiaries (collectively, the "Company") are
committed to conducting business with highest integrity and in accordance with
applicable laws, rules and regulations. The policies outlined in this Code are
designed to ensure that the Company's employees, officers and directors
participate in and foster a culture of transparency, integrity and honesty in
the Company. Each director, officer and employee is required to review this Code
and be aware of the laws that are applicable to the Company's business.

This Code provides rules and procedures to help the Company's employees,
officers and directors recognize and respond to situations that present ethical
issues. The Code applies to all of our employees, officers and directors,
wherever they are located and whether they work for the Company on a full or
part-time basis. Employees, officers and directors are expected to read the
policies set forth in this Code and understand and comply with them. Those who
violate the standards in this Code will be subject to disciplinary action.

         1. COMPLIANCE STANDARDS AND PROCEDURES. We have designated Jeff lambert
to be our Ethics Officer to be available to assist you with questions regarding
this Code or report violations of the Code misconduct. The Ethics officer is
responsible for applying these policies to specific situations in which
questions may arise and has the authority to interpret these policies in any
particular situation. Any questions relating to how these policies should be
interpreted or applied should be addressed to the Ethics Officer.

Any employee, officer or director who becomes aware of any existing or potential
violation of laws, rules, regulations or this Code is required to notify the
Ethics Officer promptly. Failure to do so is itself a violation of this Code. To
encourage employees to report any violations, the Company will not allow
retaliation for reports made in good faith.

It is obviously not possible to anticipate every circumstance or situation which
this Code would apply. Accordingly, this Code cannot, and is not intended to
provide answers to every question that might arise. Nevertheless, the basic
principles set forth herein can and should serve as guidance in dealings with
shareholders, fellow employees, business partners, and all others with whom the
Company has relationships.

Ultimately the Company must rely on each person's good sense of what is right,
including a sense of when it is proper to seek guidance from others as to the
appropriate course of conduct. When determining the proper course of action, you
should carefully analyze the situation and seek guidance from your supervisor or
other appropriate personnel in accordance with the following four steps:

                  (i) GATHER ALL THE FACTS. Do not take any action that may
violate the Code until you have gathered all the facts that are required to make
a well-informed decision and, if necessary, you have consulted with your
supervisor or the Ethics Officer.

                  (ii) ASK WHETHER THE ACTION IS ILLEGAL OR CONTRARY TO THE
CODE. If the action is illegal or contrary to the provision of this Code, you
should not carry out the act. If you believe that the Code has been violated by

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an employee, an officer or a director, you must promptly report the violation in
accordance with the procedures set forth herein.

                  (iii) DISCUSS THE PROBLEM WITH YOUR SUPERVISOR. It is your
supervisor's duty to assist you to comply with this Code. Feel free to discuss
the situation with your supervisor if you have any questions. You will suffer no
retaliation for seeking such guidance.

                  (iv) IF NECESSARY, SEEK ADDITIONAL RESOURCES. The Ethics
Officer is available to speak with you about problematic situations if you do
not feel comfortable approaching your direct supervisor. The Ethics Officer is
also available to assist you in complying with those aspects of the Code that
involve more complex issues, such as insider trading and conflicts of interest.

         2. CONFLICTS OF INTEREST. A conflict of interest exists when an
employee, officer or director takes action or enters into relationships that
oppose the interests of the Company or that interfere with his or her
performance or independent judgment when carrying out his or her duties. You may
not exploit your position or relationship with the Company for personal gain.
Conflicts of interests are prohibited as a matter of corporate policy unless
they have been approved by the Company in accordance with applicable law.
Employees, officers and directors shall take every reasonable step to promptly
disclose to a supervisor or the Ethics Officer any business or financial
interest or relationship of any employee, officer or director that might
interfere with their ability to pursue the best interests of the Company. For
example, there is a likely conflict of interest if you:

                  (a) Cause the Company to engage in business transactions with
relatives or friends;

                  (b) Use nonpublic Company, customer or vendor information for
personal gain by you, relatives or friends (including securities transactions
based on such information);

                  (c) Have more than a modest financial interest in the
Company's vendors, customers or competitors (see below for guidelines);

                  (d) Receive a loan, or guarantee of any obligation, from the
Company or a third party as a result of your position at the Company;

                  (e) Receive any payments or gifts, other than gifts of nominal
value, from any third party as a result of your position with the Company; or

                  (f) Compete, or prepare to compete, with the Company while
still employed by the Company.

Employees, officers and directors must understand the potential for conflicts of
interest in investing in the Company's vendors, customers, partners or
competitors. The Company's employees, officers and directors must always serve
the Company's stockholders first, and investing in companies with which the
Company does business may not be in our stockholders' best interests. The
following guidelines apply with respect to such investments:

         PUBLIC COMPANIES: Passive investments of less than one percent (1%) of
         the outstanding shares of companies that are listed on a U.S. or
         international stock exchange or quoted on Nasdaq, are permitted without

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         the Company's approval, provided that the investment is not so large
         financially in either absolute dollars or percentage of the
         individual's total investment portfolio as to create the appearance of
         a conflict of interest. Investments that are not within these limits
         must be approved by the Audit Committee of the Board of Directors, but
         in such cases approval will likely not be granted. No investment may
         involve any confidential inside or proprietary information, such as
         information that may have been learned about the other company as a
         result of the Company's relationship with the other company.

         PRIVATE COMPANIES: Any investment in the Company's vendors, partners,
         customers or competitors that are privately held requires disclosure to
         the Ethics Officer. If the employee, officer or director either
         directly or through the chain of authority at the Company has
         responsibility to affect or implement the Company's relationship with
         another company, review and approval of their investment by the Audit
         Committee is required, but in such cases approval will likely not be
         granted.

There are other situations in which a conflict of interest may arise. If you
have concerns about any situation, follow the steps outlined in the Section
entitled "Reporting Violations."

Engaging in any conduct that represents a conflict of interest is strictly
prohibited.

         3. GIFTS, BRIBES AND KICKBACKS. Other than modest gifts given or
received in the normal course of business (including travel or entertainment),
neither you nor your relatives may give gifts to, or receive gifts from, the
Company's customers or vendors. Other gifts may be given or accepted only with
prior approval of your supervisor or the Company's management and in no event
should you put the Company or yourself in a position that would be embarrassing
if information about the gift was made public.

When dealing with public officials, employees and directors must avoid any
activity that is or appears illegal or unethical. Many federal, state and local
governmental bodies strictly prohibit the receipt of any gratuities by their
employees, including meals, transportation, lodging and entertainment. You must
be aware of and strictly follow these prohibitions.

Any employee or director who pays or receives bribes or kickbacks will be
immediately terminated and reported as warranted, to the appropriate
authorities. A kickback or bribe includes any item intended to improperly obtain
favorable treatment, including a bribe to guarantee that the Company will use
the services of a particular vendor when such use is not advantageous to the
Company.

In addition, the U.S. Foreign Corrupt Practices Act ("FCPA") prohibits giving
anything of value, directly or indirectly, to officials of foreign governments
or foreign political candidates to obtain or retain business. This prohibition
also extends to payments to sales representatives or agents if there is reason
to believe that the payment will be used indirectly for a prohibited payment to
a foreign official. Violation of the FCPA can result in severe fines and
criminal penalties, as well as disciplinary actions by the Company, up to and
including termination of employment.

Certain small facilitation payments to foreign officials may be permissible
under the FCPA if customary in the country or locality and intended to secure
routine government action. Governmental Action is "routine" if it is ordinarily
and commonly performed by a foreign official and does not involve the exercise
of discretion. For instance, routine functions would include setting up a

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telephone line or expediting a shipment through customs. To ensure legal
compliance, before making any facilitation payments you should consult with the
Ethics Officer.

         4. PROTECTION AND PROPER USE OF COMPANY ASSETS. Every employee must
safeguard company assets from loss or theft, and ensure their efficient use. All
company assets should be used only for legitimate business purposes. Company
assets includes confidential information, intellectual property, computers,
office equipment and supplies. You must appropriately secure all company assets
within your control to prevent theft, damage or unauthorized use. Employees may
make limited non-business use of the company's electronic communications
systems, provided that such use (i) is occasional (ii) does not interfere with
the employee's professional responsibilities (iii) does not diminish
productivity, and (iv) does not violate this code or the company's electronic
communications system policy then in effect.

         5. CONFIDENTIALITY. In carrying out the company's business, employees,
officers and directors often learn confidential or proprietary information about
the company, its customers, vendors or joint venture parties. You may not use or
reveal company, customer or vendor confidential or proprietary information to
others, except when disclosure is authorized or legally mandated. Additionally,
you must take appropriate steps, including without limitation, securing
documents, limiting access to computers and electronic media, and proper
disposal methods, to prevent unauthorized access to such information.
Proprietary and/or confidential information, among other things, includes:
business methods; sales, pricing and marketing data; strategy; computer code;
information regarding the company's intellectual property, including its
technology and products; screens; forms; experimental research; and information
about, or received from, the company's current, former and prospective
customers, vendors and employees.

         6. GATHERING COMPETITIVE INFORMATION. You may not accept, use or
disclose the confidential information of our competitors. When you obtain
competitive information, you must not violate our competitors' rights.
Particular care must be taken when dealing with competitors' customers,
ex-customers and ex-employees. Never ask for a competitor's confidential or
proprietary information. Never ask a person to violate a non-competition or
non-disclosure agreement. If you are uncertain, the Ethics Officer can assist
you.

         7. FAIR DEALING. Each employee and director shall endeavor to deal
fairly with the Company's shareholders, customers, suppliers, competitors and
employees. No Company employee, director or officer should take unfair advantage
of anyone through manipulation, concealment, abuse of privileged information,
misrepresentation of material facts, or any other unfair-dealing practice.

         8. FAIR COMPETITION AND ANTITRUST LAWS. The Company must comply with
all applicable fair competition and antitrust laws. These laws attempt to ensure
that businesses compete fairly and honestly and prohibit conduct seeking to
reduce or restrain competition. If you are uncertain whether a contemplated
action raises unfair competition or antitrust issues, the Ethics Officer can
assist you.

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         9. SECURITIES LAWS AND INSIDER TRADING. It is usually illegal to buy or
sell securities using material information not available to the public. Persons
who give such undisclosed "inside" information to others may be as liable as
persons who trade securities while possessing such information. Securities laws
may be violated if you, or any relatives or friends trade in securities of the
Company, or any of its customers or vendors, while possessing inside information
or unpublished knowledge. If you are uncertain about the legality of a
particular trade, you should consult with the Ethics Officer before making any
such purchase or sale.

         10. RETENTION OF BOOKS AND RECORDS. The company business records must
be maintained for the periods specified in the company's record retention policy
or any more specific policies of your business unit. Records may be destroyed
only at the expiration of the pertinent period. In no case may documents related
to a pending or threatened litigation, government inquiry or under subpoena or
other information request, be altered, discarded or destroyed, regardless of the
periods specified in the record retention policy. In addition, you may never
destroy, alter, or conceal, with an improper purpose, any record or otherwise
impede any official proceeding, either personally, in conjunction with, or by
attempting to influence, another person.

         11. RECORDKEEPING. The Company requires honest and accurate recording
and reporting of information in order make responsible business decisions. This
requires that no fund, asset, liability, revenue or expense be concealed or
incompletely recorded for any purpose. All entries must be supported by
documentation adequate to permit the books and records to be verified by audit.
Proper accounting requires not only careful compliance by the Company's internal
auditors, but also the cooperation of all employees who are involved in keeping
financial records of any type.

Full, fair, accurate, timely and understandable disclosures in the Company's
periodic reports to the public and to governmental authorities are legally
required and are essential to the success of our business. All filings with the
SEC must be fair, accurate and timely. You should exercise the highest standard
of care in contributing to or preparing such reports in accordance with the
following guidelines:

                  (a) All the Company accounting records, as well as reports
produced from those records, must be in accordance with the laws of each
applicable jurisdiction.

                  (b) All records must fairly and accurately reflect the
transactions or occurrences to which they relate.

                  (c) All records must fairly and accurately reflect, in
reasonable detail, the Company's assets, liabilities, revenues and expenses.

                  (d) The Company's accounting records must not contain any
false or intentionally misleading entries.

                  (e) No transactions should be intentionally misclassified as
to accounts, departments or accounting periods.

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                  (f) All transactions must be supported by accurate
documentation in reasonable detail and recorded in the proper account and in the
proper accounting period.

                  (g) No information should be concealed from the internal
auditors or the independent auditors, who shall have unrestricted access to all
documents and records.

                  (h) Compliance with the Company's system of internal
accounting controls is required.

If you have knowledge of any unreported or improperly reported financial
activity you must report the information to your supervisor, the Ethics Officer
or the Audit Committee.

         12. REPORTING VIOLATIONS. Employees are encouraged to talk to
supervisors or the Ethics Officer when in doubt as to the best course of action
in a particular situation or about any observed illegal or unethical behavior,
any violations of this Code. Your conduct can reinforce an ethical atmosphere
and positively influence the conduct of your fellow employees. If you are
powerless to stop suspected misconduct or if you discover it after it has
occurred, you must report it to the appropriate level of management at your
location. Misconduct cannot be excused because it was directed or requested by
another. In this regard, you are expected to alert management whenever an
illegal, dishonest or unethical act is discovered or suspected. Management is
required to report to the Audit Committee any such reports made to it by any
employee.

If you are still concerned after speaking with your local management or feel
uncomfortable speaking with them for whatever reason, you must (anonymously if
you wish) either contact the Ethics Officer by speaking with him or sending a
detailed note, with relevant documents, to the Ethics Officer delivered to the
Company's address at 19800 MacArthur Boulevard, Suite 1200, Irvine, California
92612, or you may directly contact the Audit Committee of the Company's Board of
Directors by sending a detailed note, with relevant documents, to: Audit
Committee Compliance Matters, c/o Island Pacific, Inc., 19800 MacArthur
Boulevard, Suite 1200, Irvine, California 92612 or by e-mail to:
auditcommittee@islandpacific.com. If you choose to remain anonymous and make an
anonymous report, you should create and preserve your own record of this report
in order to be able to demonstrate your compliance with the requirement of
reporting violations. Reports made to the Ethics Officer will be reported to the
Audit Committee.

Your calls, detailed notes and/or e-mails will be dealt with confidentially,
although there may be a point where your identity may become known or have to be
revealed in the course of an investigation or to take corrective action. You
have the commitment of the Company and of the Audit Committee of the Company's
Board of Directors, which is composed of independent directors, that you will be
protected from retaliation for your good faith actions. Any employee who
attempts to or encourages others to retaliate against an individual who has
reported a violation will be subject to disciplinary action.

         13. WAIVERS. The Company expects you to comply with the provisions of
this Code. Any waiver of this Code for executive officers or directors may be
made only by the Board of Directors and will be promptly disclosed to the public
as required by law and the rules of the American Stock Exchange. When necessary,
a waiver will be accompanied by appropriate controls designed to protect the
Company.

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EXHIBIT 10.18
                              EMPLOYMENT AGREEMENT

         This employment agreement (the "Agreement"), to be effective on January
6, 2004 (the "Effective Date"), by and between EDT Learning, Inc., a Delaware
corporation (the "Company"), and Nathan Cocozza ("Employee").

         WHEREAS, the Company wishes to offer employment to Employee on the
terms and conditions expressed herein; and,

         WHEREAS, the Employee wishes to accept employment with the Company on
the terms and conditions described herein;

         NOW THEREFORE, in consideration of the mutual premises and conditions
contained herein, including the recitals hereto, which, by this reference, are
incorporated herein and made a part hereof, the parties agree as follows:

1.       EMPLOYMENT. The Company hereby agrees to employ Employee, and Employee
         hereby accepts employment by the Company, upon the terms and subject to
         the conditions hereinafter set forth.

2.       DUTIES. Employee shall serve as the Senior Vice President of Sales of
         the Company (the "Position") reporting to the Company's President.
         Employee's duties and powers shall be those consistent with the
         Position, with such additional duties or titles as determined necessary
         and appropriate from time to time by the Company's President. Employee
         agrees to devote his full time, attention and best efforts to the
         Company in the performance of Employee's duties. All of the Employee's
         powers and authorities shall be subject to the reasonable direction and
         control of the Company's President. Employee acknowledges that the
         executive offices of the Company will be located in Phoenix, Arizona
         and he shall perform his duties under this Agreement from those
         offices.

3.       TERM. Unless earlier terminated in accordance with Section 6 hereof,
         the term of this Agreement shall be for one (1) year (the "Term"),
         beginning on the Effective Date. This Agreement may be extend and
         renewed at the Company's election for an additional one (1) year term
         by providing to Employee notice of the Company's intent to renew no
         later than sixty (60) days prior to the first annual anniversary of the
         Effective Date. If this Agreement is extended and renewed beyond the
         second anniversary date of the Effective Date, the parties agree to
         renegotiate an increase in Employee's Base Salary as defined in Section
         4 below.

4.       COMPENSATION AND BENEFITS. In consideration for the services of the
         Employee hereunder, the Company will compensate Employee as follows:

         a.       BASE SALARY. Beginning with the Effective Date and continuing
                  thereafter until this Agreement is terminated, Employee shall
                  receive a monthly minimum base salary (the "Base Salary")
                  equal to fourteen thousand five hundred eighty three and
                  34/100 dollars ($14,583.34) per month. Employee's Base Salary
                  shall be paid in accordance with Company's standard policy
                  regarding payment of compensation to employees but no less
                  frequently than monthly.

         b.       BONUS. Commencing with the Effective Date and continuing
                  thereafter until this Agreement is terminated, Employee will
                  be eligible to receive a yearly cash bonus equal to one
                  hundred thousand and 00/100 dollars ($100,000.00) (the
                  "Bonus"). Sixty percent (60%) of the Bonus is to be paid

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                  quarterly based upon the achievement of established quarterly
                  targets and forty percent (40%) of the Bonus is to be paid
                  based upon the achievement of established annual targets, with
                  such annual targets measured during the period beginning April
                  1, 2004 through March 31, 2005 and during the subsequent
                  fiscal year upon renewal of this Agreement, if any, with such
                  targets and payment terms determined in writing by Employee
                  and the Company, but in no event will the quarterly or annual
                  targets be greater than those assigned to the Company's senior
                  management team. Notwithstanding anything to the contrary
                  herein or contained in the writing related hereto, any
                  quarterly Bonus due to Employee shall be due up to and
                  including the termination date of this Agreement, but no Bonus
                  shall accrue after the termination date of this Agreement.
                  Furthermore, if the Employee is terminated (other than "for
                  cause") prior to the end of the third quarter of the Company's
                  fiscal year, then the annual Bonus shall not be due, but if
                  the Employee is terminated (other than "for cause") during the
                  fourth quarter of the Company's fiscal year then the accrued
                  but unpaid annual Bonus through and including the termination
                  date shall be due and payable. By way of example but not
                  limitation, should Employee accrue a bonus for the quarter
                  ending September 30th and then this Agreement be terminated on
                  October 15th, then the bonus for the quarter beginning in
                  October shall be paid on a pro-rata basis and the annual bonus
                  shall not be due or payable.

         c.       BENEFITS. The Company shall grant Employee options to purchase
                  shares of the Company's Common Stock in such amounts, with
                  such vesting and at such prices as determined by the President
                  all in accordance with the terms of the Company's standard
                  form stock option agreement. In addition, during the term of
                  this Agreement, Employee shall be allowed to participate in,
                  and be entitled to benefits, plans and programs, including
                  improvements or modifications of the same, which are now, or
                  may hereafter be, those available to officers or employees of
                  a like position. Employee shall be entitled to medical, dental
                  and retirement benefits which are generally made available to
                  employees of a like position, and specifically Company will
                  pay the total premium costs associated with the medical and
                  dental insurance, not including deductibles and/or
                  co-payments, covering the health of Employee, Employee's
                  spouse and Employee's dependants. Medical, dental and
                  disability insurance shall become effective ten (10) days
                  after the Effective Date. During each year of his employment
                  Employee shall be entitled to fifteen (15) days of vacation,
                  and such other days of compensated absences, (i.e. sick leave
                  or personal days) in accordance with the Company's policies
                  and procedures as determined from time to time by the
                  President.

5.       EXPENSES. It is acknowledged by the parties that Employee, in
         connection with the services to be performed by him pursuant to the
         terms of this Agreement, will be required to make payments for travel,
         meals, hotel, entertainment of business associates, mobile telephone
         and similar expenses (the "Out of Pocket Expenses"). The Company will
         reimburse Employee for all reasonable and necessary Out of Pocket
         Expenses incurred by Employee in the performance of his duties.
         Employee will comply with such budget limitations, approval and
         reporting requirements with respect to such Out of Pocket Expenses as
         the Company may establish from time to time.

6.       TERMINATION. Employee's employment will begin on the Effective Date and
         continue until the end of the Term, including any renewals thereof,
         except that the employment of Employee hereunder will terminate upon
         the occurrence of the following events:

         a.       BY EMPLOYEE. Employee's employment will terminate upon
                  Employee's notice to Company, in writing at least thirty (30)
                  days prior to Employee's last day of employment, of Employee's
                  intent to terminate this Agreement. In the event of the

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                  termination of this Agreement pursuant to this sub-section
                  6(a), Employee will not be entitled to any Severance Amount
                  (as hereinafter defined) or further consideration, except for
                  any portion of the Base Salary accrued but unpaid from the
                  last monthly payment date to the date of termination and
                  expense reimbursements under Section 5 hereof for expenses
                  incurred in the performance of his duties hereunder prior to
                  termination.

         b.       DEATH OR DISABILITY. Employee's employment will terminate
                  immediately upon the death of Employee during the term of his
                  employment hereunder or, at the option of the Company, in the
                  event of Employee's disability, upon 30 days notice to
                  Employee. Employee will be deemed "disabled" if, as a result
                  of Employee's incapacity due to physical or mental illness,
                  Employee shall have been continuously absent from his duties
                  with the company on a full-time basis for 120 consecutive
                  business days, and Employee shall not reasonably be expected
                  to be able to resume his duties within 60 days of the end of
                  such 120 day period. In the event of the termination of this
                  Agreement pursuant to this subsection 6(b), Employee will not
                  be entitled to any Severance Amount (as hereinafter defined)
                  or other compensation except for any portion of his Base
                  Salary accrued but unpaid from the last monthly payment date
                  to the date of termination and expense reimbursements under
                  Section 5 hereof or for expenses incurred in the performance
                  of his duties hereunder prior to termination.

         c.       FOR CAUSE. The Company may terminate the Employee's employment
                  "for cause" immediately upon written notice by the Company to
                  Employee. For purposes of this Agreement, a termination will
                  be for Cause if: (i) Employee willfully and continuously fails
                  to perform his duties with the Company (other than any such
                  failure resulting from incapacity due to physical or mental
                  illness); (ii) Employee willfully engages in gross misconduct
                  materially and demonstrably injurious to the Company; (iii)
                  Employee has been convicted of a felony which the President
                  reasonably believes will result in injury to the Company or
                  which would disqualify employee for coverage by the Company's
                  surety bond; (iv) Employee materially breaches the
                  representations contained in Section 9 (Employee
                  Representations) after written notice and failure to cure such
                  breach. In the event of the termination of this Agreement
                  pursuant to this sub-section 6(c), Employee will not be
                  entitled to any Severance Amount (as hereinafter defined) or
                  further consideration, except for any portion of the Base
                  Salary accrued but unpaid from the last monthly payment date
                  to the date of termination and expense reimbursements under
                  Section 5 hereof for expenses incurred in the performance of
                  his duties hereunder prior to termination.

         d.       BY COMPANY WITHOUT CAUSE. The Company may terminate this
                  Agreement during the Term at any time for any reason "without
                  cause." In the event of the termination of this Agreement
                  pursuant to this subsection 6(d) and only in that event, then
                  the Company will pay Employee, as Employee's sole remedy in
                  connection with such termination, severance (the "Severance
                  Amount"); (i) if in the first twelve (12) months of the
                  Agreement an amount determined by multiplying Employee's
                  monthly Base Salary by six (6) months or (ii) if after the
                  first twelve (12) months of the Agreement an amount determined
                  by multiplying Employee's monthly Base Salary by nine (9)
                  months. The Company will also pay Employee the portion of his
                  Base Salary and Bonus accrued but unpaid from the last monthly
                  payment date to the date of termination and expense
                  reimbursements under Section 5 hereof for expenses incurred in
                  the performance of his duties hereunder prior to termination.
                  The Company will also pay the total premium costs associated
                  with the medical and dental insurance, not including
                  deductibles and/or co-payments, covering the health of
                  Employee, Employee's spouse, and Employee's dependants for six
                  (6) months after the termination date or until employee
                  obtains other medical and dental insurance, whichever occurs
                  first. The Company will pay the Severance Amount in a lump sum

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                  and within thirty (30) days of the Employee's last day of
                  employment. The Company will not be entitled to offset or
                  mitigate the amount due under this subsection by any other
                  amounts payable to Employee, including amounts payable or paid
                  to Employee by third parties for Employee's services after the
                  date of termination, except as provided for otherwise in
                  Section 10(b) hereinafter.

         e.       CHANGE OF CONTROL. A "Change of Control" shall be deemed to
                  have occurred: (i) when in a single transaction or a series of
                  transactions a change of stock ownership of the Company of a
                  nature that would be required to be reported in response to
                  Item 6(e) of Schedule 14A promulgated under the Securities
                  Exchange Act of 1934, as amended (the "Exchange Act"), and any
                  successor item of a similar nature has occurred; (ii) upon the
                  acquisition of beneficial ownership, directly or indirectly,
                  by any person (as such term is used in Section 13(d) and
                  14(d)(2) of the Exchange Act of securities of the Company) in
                  a single transaction or a series of transactions representing
                  thirty three percent (33%) or more of the combined voting
                  power of the Company's then outstanding securities; or (iii)
                  sale of substantially all of the assets of the Company in a
                  single transaction or a series of transactions; provided that
                  a Change in Control will not be deemed to have occurred for
                  purposes of clauses (i) and (ii) hereof with respect to any
                  person meeting the requirements of Rule 13d-1(b)(1)
                  promulgated under the Securities Exchange Act of 1934, as
                  amended.

7.       STOCK OPTIONS. Employee shall be granted within ten (10) days of the
         Effective Date, an option (the "Option") to purchase from the Company
         all or any part of a total of 200,000 shares of the Company's Common
         Stock, par value $.001 per share, at an exercise price equal to the
         closing price of the Company's Common stock on the date of grant (the
         "Date of Grant") of the Option. The Option is an "incentive stock
         option" within the meaning of Section 422 of the Internal Revenue Code.
         The Option will expire on the day prior to the tenth (10th) anniversary
         of the Date of Grant, or such earlier date as may be provided in the
         1997 Stock Compensation Plan (the "Plan"). Subject to the provisions of
         Plan, the Option may be exercised as follows; on the date that is six
         (6) months from the Effective Date, twenty-five percent (25.000%) of
         the options granted shall be vested, and thereafter beginning on the
         first day of the seventh month after the Effective Date, one
         thirty-sixth (1/36) of the remaining portion shall vest on the first
         day of each month, from month to month, until fully vested. In addition
         to the foregoing stock option grant, Employee will be eligible to
         participate in the Company's stock option plan and therefore deligible
         for an annual grant of additional stock options, if any, that are
         awarded to all of the Company's employees. If Employee is terminated
         "for cause" under Section 6(c) above, then the effect of the
         termination of the Employee's employment on such options shall be
         determined by the terms of the Plan under which the options are issued
         and the option agreement related to such options, except that Employee
         shall retain those options which are already vested and shall have
         ninety (90) days to exercise those vested options. Notwithstanding
         anything to the contrary herein or in any option agreement, in the
         event of a Change of Control, then the Options issued and outstanding
         to Employee shall immediately vest (100%), and the Employee may
         exercise his options at any time during the original term of the option
         agreement (as defined therein), and such termination of this Agreement
         shall not cause termination or expiration of the Options.

8.       CONFIDENTIAL INFORMATION. Employee recognizes and acknowledges that
         certain assets of the Company and its affiliates, including without
         limitation information regarding customers, pricing policies, methods
         of operation, proprietary computer programs, sales, products, profits,
         costs, markets, key personnel, formulae, product applications,
         technical processes, and trade secrets (herein called "Confidential
         Information") are valuable, special and unique assets of the Company
         and its affiliates. Employee will not, during or after the term of his
         employment, disclose any of the Confidential Information to any person,

                                  Page 4 of 8
<PAGE>

         firm, corporation, association, or any other entity for any reason or
         purpose whatsoever, directly or indirectly, except as may be required
         pursuant to his employment hereunder, unless and until such
         Confidential Information becomes publicly available other than as a
         consequence of the breach by Employee of his confidentiality
         obligations hereunder. In the Event of the termination of his
         employment, whether voluntary or involuntary, and whether by the
         Company or Employee, Employee will deliver to the Company all documents
         and data pertaining to the Confidential Information and will not take
         with him any documents or data of any kind or any reproductions (in
         whole or in part) of any items relating to the Confidential
         Information.

9.       REPRESENTATIONS OF EMPLOYEE.

         a.       NON-COMPETITION. For the period beginning with the Effective
                  Date and continuing thereafter until, (x) if before the first
                  annual anniversary of the Effective Date the expiration of six
                  (6) months after termination of Employee's employment with the
                  Company, or (y) if after the first annual anniversary of the
                  Effective Date the expiration of nine (9) months after
                  termination of Employee's employment with the Company, then
                  Employee covenants, warrants and represents that he will not:
                  (i) engage directly or indirectly, alone or as a shareholder,
                  partner, officer, director, employee or consultant of any
                  other business organization that engages in any business
                  activities that are directly competitive with the Company;
                  (ii) divert to any competitor of the Company any customer of
                  the Company or induce a customer to cease doing business with
                  the Company or, (iii) solicit or encourage any employee of the
                  Company to leave their employment with the Company or seek
                  employment by or with any competitor of the Company. The
                  parties hereto acknowledge that Employee's non-competition
                  obligations hereunder will not preclude Employee from (i)
                  owning less than 5% of the common stock of any publicly traded
                  corporation conducting business activities that are
                  competitive with the Company or (ii) serving as an officer,
                  director, stockholder or employee of an entity whose business
                  operations are not competitive with those of the Company.
                  Employee will continue to be bound by the provisions of this
                  Section 9 until their expiration and will not be entitled to
                  any compensation from the Company with respect thereto. If at
                  any time the provisions of this Section 9 are determined to be
                  invalid or unenforceable, by reason of being vague or
                  unreasonable as to area, duration or scope of activity, this
                  Section 9 will be considered divisible and will become and be
                  immediately amended to only such area, duration, scope of
                  activity as will be determined to be reasonable and
                  enforceable by the court or other body having jurisdiction
                  over the matter; and Employee agrees that this Section 9 as so
                  amended will be valid and binding as though any invalid or
                  unenforceable provision had not been included herein.

         b.       GENERAL REPRESENTATIONS. As of the Effective Date, Employee
                  expressly warrants and represents to the Company that: (i) All
                  employment agreements, employment letters or employment
                  relationships, whether as an employee or as an independent
                  contractor, have been terminated (ii) The execution and
                  delivery of this Agreement does not violate any provision of
                  any existing employment agreement to which Employee is a party
                  and which on the Effective Date remain in effect; and (iii)
                  Employee is not (by virtue of any act or omission) in
                  violation of any non-competition or like covenant that would
                  have the effect of prohibiting Employee from lawfully engaging
                  in the activities contemplated by this Agreement.

                                  Page 5 of 8
<PAGE>

10.      GENERAL.

         a.       NOTICES. All notices and other communications hereunder will
                  be in writing or by written telecommunication, and will be
                  deemed to have been duly given if delivered personally or if
                  mailed by certified mail, return receipt requested or by
                  written telecommunication, to the relevant address set forth
                  below, or to such other address as the recipient of such
                  notice or communication will have specified to the other party
                  hereto in accordance with this Section 10(a):
<TABLE>
<CAPTION>
<S>     <C>
                      If to the Company, to:                    If to Employee:

                      EDT Learning, Inc.                        Nathan Cocozza
                      2999 N. 44th Street, Suite 650            15131 East Twilight View Drive
                      Phoenix, Arizona 85018                    Fountain Hills, Arizona 85268
                      Attn: President
                      Fax No.: (602) 952-0544
</TABLE>

         b.       WITHHOLDING AND OFFSET. All payments required to be made by
                  the Company under this Agreement to Employee will be subject
                  to the withholding of such amounts, if any, relating to
                  federal, state and local taxes as may be required by law. No
                  payment under this Agreement will be subject to offset or
                  reduction attributable to any amount Employee may owe to the
                  Company or any other person.

         c.       EQUITABLE REMEDIES. Each of the parties hereto acknowledges
                  and agrees that upon any breach by Employee of his obligations
                  under any of the Sections 8 and 9 hereof, the Company will
                  have no adequate remedy at law, and accordingly will be
                  entitled to specific performance and other appropriate
                  injunctive and equitable relief.

         d.       SEVERABILITY. If any provision of this Agreement is held to be
                  illegal, invalid or unenforceable, such provision will be
                  fully severable and this Agreement will be construed and
                  enforced as if such illegal, invalid or unenforceable
                  provision never comprised a part hereof; and the remaining
                  provisions hereof will remain in full force and effect and
                  will not be affected by the illegal, invalid or unenforceable
                  provision or by its severance herefrom. Furthermore, in lieu
                  of such illegal, invalid or unenforceable provision, there
                  will be added automatically as part of this Agreement a
                  provision as similar in its terms to such illegal, invalid or
                  unenforceable provision as may be possible and be legal, valid
                  and enforceable. Any and all covenants and obligations of
                  either party hereto which by their terms or by reasonable
                  implication are to be performed, in whole or in part, after
                  the termination of this Agreement, shall survive such
                  termination, including specifically the obligations arising
                  under Sections: 6, 7, 8 and 9.

         e.       WAIVERS. No delay or omission by either party hereto in
                  exercising any right, power or privilege hereunder will impair
                  such right, power or privilege, nor will any single or partial
                  exercise of any such right, power or privilege preclude any
                  further exercise thereof or the exercise of any other right,
                  power or privilege.

                                  Page 6 of 8
<PAGE>

         f.       COUNTERPARTS. This Agreement may be executed in multiple
                  counterparts, each of which will be deemed an original, and
                  all of which together will constitute one and the same
                  instrument.

         g.       CAPTIONS. The captions in this Agreement are for convenience
                  of reference only and will not limit or otherwise affect any
                  of the terms or provisions hereof.

         h.       REFERENCE TO AGREEMENT. Use of the words "herein," "hereof,"
                  "hereto " and the like in this Agreement refer to this
                  Agreement only as a whole and not to any particular subsection
                  or provision of this Agreement, unless otherwise noted.

         i.       BINDING AGREEMENT. This Agreement will be binding upon and
                  inure to the benefit of the parties and will be enforceable by
                  the personal representatives and heirs of Employee and the
                  successors of the Company. If Employee dies while any amounts
                  would still be payable to him hereunder, such amounts will be
                  paid to Employee's estate. This Agreement is not otherwise
                  assignable by Employee.

         j.       ENTIRE AGREEMENT. Except as provided in the benefit plans and
                  programs referenced herein, this Agreement contains the entire
                  understanding of the parties, supersedes all prior agreements
                  and understandings relating to the subject matter hereof and
                  may not be amended except by a written instrument hereafter
                  signed by each of the parties hereto. Any modification of this
                  Agreement shall be effective only if it is in writing and
                  signed by the parties hereto.

         k.       GOVERNING LAW. This Agreement and the performance hereof will
                  be construed and governed in accordance with the laws of the
                  State of Arizona, without regard to its choice of law
                  principles.

         l.       ATTORNEYS' FEES. If legal action is commenced by either party
                  to enforce or defend its rights under this Agreement, the
                  prevailing party in such action shall be entitled to recover
                  its court costs and reasonable attorneys' fees, including
                  expert witnesses fees actually incurred which shall be awarded
                  to the that party, in addition to any other relief granted.

         m.       AUTHORITY. The signatories to this Agreement represent and
                  warrant that such signatory has the authority to enter into
                  this Agreement, and that neither that signatory nor the party
                  on whose behalf this Agreement may be signed has assigned any
                  claims related to the parties' relationship or this Agreement
                  to any person or entity.

11.  BINDING ARBITRATION. Any controversy or claim arising out of or relating to
     this Agreement, or breach thereof, shall be settled exclusively by
     arbitration in Phoenix, Arizona, in accordance with the Commercial
     Arbitration Rules of the American Arbitration Association then in effect. A
     sole arbitrator shall conduct Arbitration and he or she shall render his or
     her award within forty five (45) days of appointment. Judgment upon the
     award rendered by the arbitrator may be entered in, and enforced by, any
     court having jurisdiction thereof. The award of the arbitrator may grant
     any relief available to the parties in law or in equity; and the award may
     contain a provision for payment of costs and attorney's fees to the
     prevailing party, if any.

                                  Page 7 of 8
<PAGE>

         EXECUTED to be effective as of the Effective Date first written above.

EDT LEARNING, INC.                       EMPLOYEE:
                                         NATHAN COCOZZA

By: ______________________________       By: ___________________________________
       James M. Powers, Jr.,
       President

                                  Page 8 of 8

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