Document:

Amendment No. 1 to Credit Agreement

                                   dated as of
                                  June 30, 2000

                                  by and among

                           Video Services Corporation,
                           and its direct and indirect
              subsidiaries listed on the signature pages hereto, as
                         Borrower and/or Credit Parties

                            The Lenders Party Hereto,
                                   as Lenders

                      General Electric Capital Corporation,
                                  as Term Agent
                                      and
                              Administrative Agent

                                       and

                          Keybank National Association,
                                as Revolver Agent

<PAGE>

                       Amendment No. 1 to Credit Agreement

     This Amendment No. 1 to Credit Agreement  (the"Amendment") dated as of June
30,  2000  ("Amendment   Closing  Date"),  made  by  and  among  Video  Services
Corporation,  a  Delaware  corporation,  and  each of its  direct  and  indirect
subsidiaries listed on the signature pages hereto as "Borrowers"  (collectively,
the "Borrowers"  and each  individually  as the  "Borrower"),  each of the other
credit  parties  hereto (the  Borrower  and such other credit  parties,  "Credit
Parties"),  each of the Lenders  signatory  hereto and those  Persons who become
lenders in  accordance  with the terms and  conditions  of the Credit  Agreement
referred  to below  (each a  "Lender,"  and  collectively,  "Lenders"),  General
Electric Capital Corporation,  a New York corporation ("G.E.  Capital"), as Term
Agent and Administrative Agent under the Credit Agreement,  and KeyBank National
Association ("KeyBank"),  as revolver agent for the applicable Lenders under the
Credit Agreement (collectively, with G.E. Capital, the "Agents").

     Whereas,  Borrowers, Credit Parties, Agents and Lenders are parties to that
certain  Credit  Agreement  dated as of  June 30,  2000  (the  "Original  Credit
Agreement";  the Original Credit Agreement,  as amended hereby,  and as same may
hereafter  be  amended  from  time  to  time  is  referred  to  as  the  "Credit
Agreement");

     Whereas,  Borrowers,  Credit  Parties,  Agents and Lenders are agreeable to
making certain  amendments and revisions to the Original  Credit  Agreement upon
the terms and conditions set forth herein.

     Now, Therefore,  in consideration of the foregoing premises, and the mutual
covenants  contained herein,  the parties hereto hereby agree that the foregoing
recitals are true and correct and incorporated herein, and as follows:

     Section 1.          AMENDMENTS AND CORRECTIONS TO OUTSTANDING INDEBTEDNESS,
                         LIENS, WAIVER OF EXISTING DEFAULTS AND RESERVATION OF
                         RIGHTS.

     (a) (i) Part 1.1 (a)(ii)(A) of Section 1.1 of the Original Credit Agreement
     is hereby  amended by  replacing  "39 months  after the Closing  Date" with
     "July 1, 2003".

                  (ii) Parts  1.1(b)(i) and (ii) and  1.1(c)(iii) of Section 1.1
          of the Original Credit Agreement are hereby amended by the deletion of
          the date "July 1, 2000" set forth in each section and  substitution of
          the date October 1, 2000 therefor.

                  (iii) Section  1.1(c)(iii)  is hereby amended by replacing the
          reference to 50% in the phrase "1/4 of 50% of the remaining  principal
          balance as of July 1,  2006" with 100%,  and the date April 1, 2007 in
          the  phrase  "July 1, 2006 and on the first  day of each  three  month
          period  thereafter  through and including April 1, 2007" with the date
          July 1, 2007.

                  (iv) The definition of the term "Commitment  Termination Date"
          set forth in Annex  "A" to  Credit  Agreement  is  hereby  amended  by
          replacing  "39 months"  with "July 1, 2003" in each of part (i)(A) and
          part (ii)(A) of such  definition,  and by  replacing  "63 months" with
          "July 1, 2005" in part (iii)(A) of such definition.

                  (v) The definitions of "Working Capital  Termination  Date" is
          hereby amended by deleting the number "39" therefrom and  substituting
          the number "36" therefor.

     (b)  Each Borrower and each Credit Party acknowledges and agrees that it is
     truly and justly indebted to Agents and Lenders under the Credit  Agreement
     and the other Loan  Documents.  Each Borrower and other Credit Party agrees
     that it has no, and hereby  expressly  waives  all,  offsets,  defenses  or
     counterclaims  to the payment of the  Obligations or the  performance by it
     under the Credit  Agreement  and the other Loan  Documents.  Further,  each
     Borrower  and Credit  Party  agrees  that it has no,  and hereby  expressly
     waives  all,  claims of any  nature  whatsoever  against  the Agents or the
     Lenders,  their respective parents,  subsidiaries,  affiliates,  divisions,
     officers, directors,  employees, agents, counsel, stockholders,  successors
     or  assigns,  arising  out of or  related  to  the  Obligations,  the  Loan
     Documents or otherwise.

     (c)  Borrower  acknowledges  and  agrees  that each  Agent and each  Lender
     continue to reserve and preserve any and all rights and remedies  under all
     applicable Loan Documents and law, and no failure,  delay or discontinuance
     on the part of either Agent or any Lender in exercising any right, power or
     remedy hereunder shall operate as a waiver thereof, nor shall any single or
     partial  exercise of any such right,  power or remedy preclude any other or
     further  exercise  thereof  or the  exercise  of any other  right  power or
     remedy,  and that entry into this  Amendment  shall not obligate the Lender
     Group to hereafter amend any term or condition of the Loan Documents, or to
     consent to any departure from, or to waive, any of the terms and conditions
     of the Loan Documents or any Default or Event of Default.

     (d)  In addition to any other Defaults or Events of Default which may occur
     under the Loan  Documents,  the  occurrence of any of the  following  shall
     constitute  an Event of Default:  (i) any failure by a Borrower or a Credit
     Party to observe or perform any of the terms or  conditions  to be observed
     or performed  pursuant to this Amendment,  and (ii) any  representation  or
     warranty made by any Borrower or Credit Party in this  Amendment,  shall be
     false,  misleading,  or incomplete,  in any material respect as of the time
     when made.

     Section 2.          Representations, Warranties and Covenants; Confirmation
                         of Certain Loan Documents.

     (a) Without  limiting the  generality of the  provisions of this Section 2,
     each Credit Party hereby  represents  and warrants to Agents and Lenders as
     follows:

          (i) The  representations and warranties of each Credit Party contained
          in the Credit Agreement,  as amended hereby,  the other Loan Documents
          or in any other  document or  instrument  delivered  pursuant to or in
          connection  with the Credit  Agreement were true and correct when made
          and continue to be true and correct on the date hereof (except as such
          representations  and  warranties  are  affected  by  the  transactions
          contemplated  hereby and changes  occurring in the ordinary  course of
          business that singly or in the aggregate are not  materially  adverse,
          and to the extent  that such  representations  and  warranties  relate
          expressly to any earlier date) and, immediately after giving effect to
          this  Amendment  and at all times  thereafter,  no Default or Event of
          Default has occurred and is continuing.

          (ii) The execution,  delivery and  performance by each Credit Party of
          this Amendment and the transactions contemplated hereby (A) are within
          the  corporate  authority  of each  Credit  Party,  (B) have been duly
          authorized by all necessary corporate proceedings, (C) do not conflict
          with or result in any breach or  contravention  of any  provisions  of
          law, statute,  rule or regulation to which each Credit Party or any of
          their   Subsidiaries  are  subject  or  any  judgment,   order,  writ,
          injunction,  license or permit  applicable to each Credit Party or any
          of their  Subsidiaries,  and (D) do not conflict with any provision of
          the  corporate  charter  or  by-laws  of,  or any  agreement  or other
          instrument   binding   upon,   each  Credit  Party  or  any  of  their
          Subsidiaries.

          (iii)  This  Amendment,  the  Credit  Agreement  and  the  other  Loan
          Documents as amended hereby  constitute  the legal,  valid and binding
          obligations  of each Credit  Party,  enforceable  against  each Credit
          Party in accordance with their respective terms.

          (iv) Each party  executing  this  Amendment  (other  than Agent or any
          Lender)  agrees that it shall and shall cause each other party  hereto
          (other than Agent or any Lender) to, at such Persons expense and upon
          request  of  Agent,  duly  execute  and  deliver,  or cause to be duly
          executed and delivered,  to Agent and Lender, such further instruments
          and do and cause to be done such  further  acts as may be necessary or
          proper  in  the  reasonable   opinion  of  Agent  to  carry  out  more
          effectively the provisions and purposes of this Amendment or any other
          Loan Document.

     (b)  Without limiting the generality of the provisions of this Section 2:

          (i)  Each  Credit  Party  hereby  ratifies  and  confirms  each of the
          respective  Collateral  Documents  and pledges of  security  interests
          granted  thereby to secure the  Obligations of each Credit Party under
          the Credit Agreement, as amended hereby, and the Notes.

          (ii) Each Credit Party who is a Guarantor hereby ratifies and confirms
          that its  respective  Guaranty,  together with any  documents  related
          thereto, the obligations undertaken thereunder, the security interests
          granted  thereby and the waiver of rights  effectuated  thereby  shall
          remain in full force and effect and extend to the Credit Agreement, as
          amended hereby, and to the Notes.

          (iii) Except as expressly  otherwise provided herein, all of the terms
          and conditions of the Credit  Agreement and other Loan Documents shall
          remain in full force and effect.

     Section 3. CONDITIONS PRECEDENT.

     (a) Conditions to Initial Effectiveness.  Neither the Agents nor any Lender
     shall be  obligated  to make or to take,  fulfill  or  perform  any  action
     hereunder,  until and unless this  Amendment or  counterparts  hereof shall
     have been duly executed by, and delivered to, each Credit Party,  Agent and
     Lenders.

     Section 4.          Miscellaneous.

     (a) Governing  Law.  Except as otherwise  expressly  provided in any of the
     Loan  Documents,  in all respects,  including all matters of  construction,
     validity  and  performance,  the  Amendment  and the  obligations  shall be
     governed by, and construed and enforced in accordance with, the laws of the
     State of New York  applicable to contracts made and performed in that State
     and any applicable laws of the United States of America.  Each Credit Party
     hereby  consents and agrees that the State or federal courts located in New
     York county,  city of New York, New York shall have exclusive  jurisdiction
     to hear and  determine  any claims or disputes  between or among the Credit
     Parties,  Agent or any Lender  pertaining  to this  Amendment or any of the
     other Loan  Documents  or to any matter  arising out of or relating to this
     Amendment or any of the other Loan Documents,  provided,  that Agent,  each
     Lender and the  Credit  Parties  acknowledge  that any  appeals  from those
     courts may have to be heard by a court located  outside of New York county,
     city of New York, New York and, provided, further nothing in this Amendment
     shall be deemed or operate to preclude  Lender from bringing suit or taking
     other legal action in any other  jurisdiction  to realize on the Collateral
     or any other  security  for the  Obligations,  or to enforce a judgment  or
     other  court  order in favor of Agent  or any  Lender.  Each  Credit  Party
     expressly  submits  and  consents  in advance to such  jurisdiction  in any
     action or suit  commenced  in any such court,  and each Credit Party hereby
     waives any  objection  which such Credit  Party may have based upon lack of
     personal  jurisdiction,  improper  venue or forum non conveniens and hereby
     consents  to the  granting of such legal or  equitable  relief as is deemed
     appropriate by such court. Each Credit Party hereby waives personal service
     of the summons,  complaint and other  process  issued in any such action or
     suit and agrees that service of such summons,  complaints and other process
     may be made by registered or certified  mail addressed to such Credit Party
     at the  address  set  forth in  Annex H of the  Credit  Agreement  and that
     service so made shall be deemed  completed  upon the earlier of such Credit
     Party's actual receipt  thereof or three (3) days after deposit in the U.S.
     mails, proper postage prepaid.

     (b) Waiver of Jury  Trial.  Because  disputes  arising in  connection  with
     complex financial  transactions are most quickly and economically  resolved
     by an experienced and expert person and the parties wish  applicable  State
     and federal laws to apply  (rather  than  arbitration  rules),  the parties
     desire that their disputes be resolved by a judge applying such  applicable
     laws.  Therefore,  to achieve the best  combination  of the benefits of the
     judicial system and of  arbitration,  the parties hereto waive all right to
     trial by jury in any action,  suit,  or  proceeding  brought to resolve any
     dispute, whether sounding in contract, tort or otherwise,  among Lender and
     any Credit Party arising out of, connected with,  related to, or incidental
     to the  relationship  established  among  them  in  connection  with,  this
     Amendment or any of the other Loan  Documents or the  transactions  related
     thereto.

     (c) Counterparts.  This Amendment may be executed in any number of separate
     counterparts,  each of which shall  collectively and separately  constitute
     one agreement.

     (d) Construction of Amendment,  etc. This Amendment  constitutes a part of,
     and shall be construed in connection  with, the Credit  Agreement,  and all
     terms, covenants, conditions,  representations and warranties therein shall
     remain in full force in effect and are incorporated  herein by reference as
     if fully set forth herein.  This Amendment  represents the entire agreement
     and understanding  concerning the subject matter hereof between the parties
     hereto,   and  supersedes  all  other  prior  agreements,   understandings,
     negotiations and  discussions,  representations,  warranties,  commitments,
     proposals,  offers and  contracts  concerning  the subject  matter  hereof,
     whether oral or written.  In the event of any  inconsistencies  between the
     provisions of this  Amendment and  elsewhere in the Credit  Agreement,  the
     provisions of this Amendment shall in all respects govern and control.

     (e) No  Novation;  Ratification.  This  Amendment  is not a novation of the
     Credit  Agreement or other existing Loan Documents  except as expressly set
     forth in this Amendment.  The parties agree that except as modified herein,
     all terms,  conditions,  rights and obligations  under the Credit Agreement
     and all other Loan  Documents  are hereby  reaffirmed  and shall  otherwise
     remain in full force and effect as originally  written and agreed. The Loan
     Documents, including, without limitation, this Amendment and any other Loan
     Documents  entered into in connection  herewith  shall be construed to give
     Agents and Lenders the greatest  possible  cumulative  rights and remedies;
     should there by any apparent  conflict  between this Amendment,  the Credit
     Agreement or any other Loan Documents, this principle of construction shall
     apply.

     Section 5.        Defined Terms.

     Capitalized  terms not  otherwise  defined  herein  shall have the meanings
     ascribed to them in the Credit Agreement or the other Loan Documents.

     IN WITNESS  WHEREOF,  this  Amendment has been duly executed as of the date
     first written above.

                                BORROWERS:

                                VIDEO SERVICES CORPORATION
                                     as Borrower, Borrower Representative and
                                     Credit Party

/s/ Michael E. Fairbourne       Video Services Corporation
Michael E. Fairbourne           Senior Vice President - Administration

/s/ Michael E. Fairbourne       AF Associates Inc.
Michael E. Fairbourne           Vice President - Administration

/s/ Michael E. Fairbourne       AFA Products Group, Inc.
Michael E. Fairbourne           Vice President - Administration

/s/ Michael E. Fairbourne       Audio Plus Video International, Inc.
Michael E. Fairbourne           Vice President - Administration

/s/ Michael E. Fairbourne       Atlantic Satellite Communications, Inc.
Michael E. Fairbourne           Vice President - Administration

/s/ Michael E. Fairbourne       Cabana Corp.
Michael E. Fairbourne           Vice President - Administration

/s/ Michael E. Fairbourne       International Post Finance Limited
Michael E. Fairbourne           President

/s/ Michael E. Fairbourne       International Post Leasing Limited
Michael E. Fairbourne           Vice President - Administration

/s/ Michael E. Fairbourne       Manhattan Transfer/Edit, Inc.
Michael E. Fairbourne           Vice President - Administration

/s/ Michael E. Fairbourne       The Post Edge, Inc.
Michael E. Fairbourne           Vice President - Administration

/s/ Michael E. Fairbourne       Video Rentals, Inc.
Michael E. Fairbourne           Vice President - Administration

<PAGE>

                                 CREDIT PARTIES:

     Each Credit Party indicated below hereby  acknowledges  and consents to the
terms and conditions of the foregoing  Amendment.  Each Credit Party agrees that
its respective Guaranty dated June 30, 2000, made by the Credit Parties in favor
of  Lenders  and all other Loan  Documents  to which it is a party is, and shall
remain,  in full force and effect until all Loan Documents have been  terminated
and all Obligations have been paid and satisfied in full.

     As a further  inducement to Agents and Lenders entering into the Amendment,
each such Credit  Party does hereby  release  and forever  discharge  Agents and
Lenders and all participants,  if any, with Lenders in the Obligations, and each
and every one of their directors,  officers, employees,  representatives,  legal
counsel, agents, parents,  subsidiaries and affiliates,  and persons employed or
engaged by them, whether past or present (hereinafter  collectively  referred to
as the  "Lender  Releasees"),  of and from  all  actions,  agreements,  damages,
judgments,  claims,  counterclaims,   and  demands  whatsoever,   liquidated  or
unliquidated,  contingent  or fixed,  determined or  undetermined,  at law or in
equity, which the Borrowers, the other Credit Parties, or any of them, have had,
now have, or may have against the Lender Releasees, or any of them, for, upon or
by reason of any matter, cause or thing whatsoever to the date of the Amendment,
whether  arising  out of,  related  to or  pertaining  to the  Obligations,  the
Guaranty,  or  any  other  Loan  Document,   or  otherwise,   including  without
limitation,  the  negotiation,  closing,  administration,  and  funding  of  the
Obligations and the Loan Documents,  any declaration of, or actions or inactions
taken or not taken in respect of, the Existing  Events of Default,  or any other
Defaults or Events of Default,  or any  collection or recovery  efforts taken in
respect of the Obligations.

     To this  effect,  each  Credit  Party  named  below  represents,  warrants,
acknowledges and agrees that it has no and hereby waives all, claims,  defenses,
offsets and  counterclaims  it has had,  now has, or may have to the payment and
performance of its respective Obligations under its respective Guaranty.

     Each Credit Party named below  acknowledges  that the  provisions set forth
above are a  material  inducement  for  Agents  and  Lenders  entering  into the
Amendment.

/s/ Michael E. Fairbourne       IPL 235 Corp.
Michael Fairbourne              President

/s/ Michael E. Fairbourne       VSC EXPRESS CoURIER, INC.
Michael E. Fairbourne           Vice President - Administration

/s/ Michael E. Fairbourne       VSC CORPORATION
Michael E. Fairbourne           Vice President - Administration

                                LENDERS:

/s/ Ann Naegele                 GENERAL ELECTRIC CAPITAL CORPORATION,
Ann Naegele                     as Term Agent
                                Vice President - Risk Manager

/s/ Craig Kineade               KEYBANK NATIONAL ASSOCIATION,
Craig Kineade                   as Revolver Agent
                                Vice President

/s/ Ann Naegele                 GENERAL ELECTRIC CAPITAL CORPORATION,
Ann Naegele                     as Lender
                                Vice President - Risk Manager

/s/ Craig Kineade               KEYBANK NATIONAL ASSOCIATION,
Craig Kineade                   as Lender
                                Vice President

/s/ Andrew DeTullio             SUMMIT BANK,
Andrew DeTullio                 as Lender
                                Vice PresidentEXHIBIT   10.1

                          STRATEGIC ALLIANCE AGREEMENT
                                      AMONG
                           ARRAY TELECOM CORPORATION,
                              EPHONE TELECOM, INC.
                                       AND
                               COMDIAL CORPORATION

         This Strategic Alliance Agreement (the "Agreement") is made as of March
31, 2000, between ARRAY TELECOM  CORPORATION,  a corporation  incorporated under
the laws of the  State of  Delaware  and  having  its  principal  office at 1145
Herndon  Parkway,  Herndon,  Virginia 20170 ("Array"),  ePHONE TELECOM,  INC., a
corporation  incorporated  under the laws of the State of Florida and having its
principal office at 355 Burrard Street, Suite 1000, Vancouver, British Columbia,
Canada V6C 2G8 ("ePHONE"),  and COMDIAL CORPORATION,  a corporation incorporated
under the laws of the State of Delaware and having its principal  office at 1180
Seminole Trail, Charlottesville, Virginia 22906 ("Comdial").

                                    RECITALS

         WHEREAS,   ePHONE   is   in   the   business   of   providing   certain
telecommunications services, including international long distance services that
allow users to perform  phone-to-phone  one step dialing via Voice over Internet
Protocol;

         WHEREAS,  Array has  developed  certain  software  products,  including
VoipGate,  Array  Version 2 and the Array  3000  family  of  products,  and owns
certain related assets;

         WHEREAS,  Comdial owns all of the  outstanding  capital stock of Array;
and

         WHEREAS,  Array has agreed to sell,  and ePHONE has agreed to purchase,
all of  Array's  physical  assets,  and  Array  has  agreed to grant to ePHONE a
license in the form of  Exhibit B to this  Agreement  to,  among  other  things,
VoipGate, Array Version 2 and the Array 3000 family of products.

                                    AGREEMENT

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

                                   ARTICLE 1.
                           SALE AND PURCHASE OF ASSETS

         Section  1.1 Sale and  Purchase  of  Assets.  Subject  to the terms and
conditions of this Agreement,  on the Closing Date  (hereinafter  defined) Array
shall  sell,  transfer,  convey and deliver to ePHONE,  and on the Closing  Date
ePHONE shall purchase and acquire from Array,  the fixed assets of Array used in
its business and listed in Schedule 1 (the "Purchased Assets"). The transfer and
conveyance of the Purchased Assets shall be made by a bill of sale (the "Bill of
Sale") in substantially the form attached hereto as Exhibit A.

         Section  1.2  Excluded  Assets.  The  Purchased  Assets  to be sold and
purchased hereunder do not include cash, accounts receivable, intangible assets,
patents or patent  applications,  know-how,  trade secrets or any other asset of
Array that is not listed in Schedule 1.

         Section 1.3 No Assumption of Liabilities. ePHONE shall not assume or be
otherwise  liable for any  liabilities  or  obligations  of Array related to the
Purchased Assets or otherwise,  except for obligations arising after the Closing
Date under the Lease (as defined in Section 7.7).

                                   ARTICLE 2.
                              LICENSE OF TECHNOLOGY

         Section  2.1  License.  Array  shall  grant to ePHONE a license  to the
Intellectual  Property (as such term is defined in the License  Agreement)  (the
"Licensed  Assets")  pursuant to the License Agreement in substantially the form
attached hereto as Exhibit B.

                                   ARTICLE 3.
                           CONSIDERATION FOR AGREEMENT

         Section 3.1 Consideration for Agreement.  In partial  consideration for
this Agreement and the  transactions  contemplated  hereby,  ePHONE shall pay to
Array at the Closing in cash the amount of $2,650,000.

         Section 3.2 Royalty  Payments.  ePHONE shall make  royalty  payments to
Comdial pursuant to the terms of the License Agreement.

                                   ARTICLE 4.
                            REPRESENTATIONS BY ARRAY

         Section 4.1  Organization;  Qualification.  Array is a corporation duly
organized,  validly existing and in good standing under the laws of the State of
Delaware and has all necessary  corporate  power and authority to own its assets
and carry on its  business as it is  presently  being  conducted.  Array is duly
qualified and in good standing to do business in each  jurisdiction in which its
business makes such qualification necessary, except in those jurisdictions where
failure to be duly qualified and in good standing does not and cannot reasonably
be  expected  to have,  in the  aggregate,  a  material  adverse  effect  on the
Purchased  Assets,  the Licensed  Assets or its business.  Array has  heretofore
delivered  to  ePHONE   complete  and  correct  copies  of  its  Certificate  of
Incorporation and Bylaws currently in effect.

         Section  4.2  Authority  Relative  to  this  Agreement.  Array  has all
necessary  corporate  power and authority to execute and deliver this  Agreement
and to  consummate  the  transactions  contemplated  hereby.  The  execution and
delivery  by  Array  of  this  Agreement,  and  the  consummation  by it of  the
transactions  contemplated  hereby,  have been duly  authorized  by the Board of
Directors of Array and no other  corporate  proceedings on the part of Array are
necessary  with  respect  thereto.  This  Agreement  has been duly  executed and
delivered by Array and constitutes,  and the other agreements referred to herein
to which Array is a party (collectively,  the "Array Related Agreements"),  when
executed and delivered by Array, will constitute,  valid and binding obligations
of Array  enforceable  against Array in accordance  with their terms,  except as
their  terms may be  limited  by (i)  bankruptcy,  insolvency  or  similar  laws
affecting  creditors'  rights  generally or (ii) general  principles  of equity,
whether considered in a proceeding in equity or at law.

         Section 4.3 No  Violation.  The execution and delivery by Array of this
Agreement and the Array Related Agreements does not, and the consummation of the
transactions  contemplated hereby and thereby, will not (i) violate or result in
a breach of any  provision  of the  Certificate  of  Incorporation  or bylaws of
Array,  (ii)  result in a  default,  or give  rise to any right of  termination,
modification or  acceleration,  or the imposition of a mortgage,  lien,  pledge,
security  interest,  charge,  claim,  restriction or other  encumbrance or other
defects in title (each an  "Encumbrance")  on any of the Purchased Assets or the
Licensed  Assets,  under  the  terms or  provisions  of any  agreement  or other
instrument or obligation to which Array is a party or by which Array, any of the
Purchased  Assets,  the Licensed  Assets or its business may be bound,  or (iii)
violate any law or  regulation,  or any judgment,  order or decree of any court,
governmental body, commission,  agency or arbitrator applicable to Array, any of
the Purchased Assets, the Licensed Assets or its business (other than applicable
"bulk sales" laws),  excluding  from the  foregoing  clauses (ii) and (iii) such
defaults and violations which do not and cannot reasonably be expected to have a
material adverse effect on the Purchased Assets or the Licensed Assets, or Array
or its other properties or its business.

         Section  4.4  Litigation.   There  are  no  actions,   suits,   claims,
investigations or proceedings pending or, to the knowledge of Array,  threatened
against  Array,  before  any court,  governmental  body,  commission,  agency or
arbitrator,  which have or can reasonably be expected to have a material adverse
effect on the Purchased  Assets or the Licensed Assets or Array or its business,
or which seek to limit,  in any  manner,  the right of ePHONE to control and use
the  Purchased  Assets and the  Licensed  Assets after the  consummation  of the
transactions  contemplated  in  this  Agreement.   Furthermore,   there  are  no
judgments,  orders or decrees of any such court,  governmental body, commission,
agency or arbitrator  which have or can  reasonably be expected to have any such
effect.

         Section 4.5 Titles to Assets;  Leases.  Array holds good and marketable
title to all of the Purchased Assets and the Licensed Assets,  free and clear of
any Encumbrances,  and has the right to sell,  transfer and assign the Purchased
Assets to ePHONE and license the Licensed Assets to ePHONE.  All properties held
under lease by Array are held under valid, enforceable and assignable leases.

         Section 4.6 Consents and  Approvals.  Except to the extent that failure
to obtain such consent or approval would not have material adverse effect on the
Purchased Assets or the Licensed Assets or Array's business,  and except for the
consent of Bank of America  under the Credit  Agreement  between Bank of America
and Comdial dated as of October 22, 1998, which consent has been obtained, there
is no requirement  applicable to Array to make any filing with, or to obtain the
consent  or  approval  of, any  individual,  corporation,  partnership,  limited
liability company, association, trust or other entity or organization, including
any government or political subdivision, agency or instrumentality thereof (each
a "Person") as a condition to the consummation of the transactions  contemplated
by this  Agreement  (other than as may be required by  applicable  "bulk  sales"
laws).

                                   ARTICLE 5.
                           REPRESENTATIONS BY COMDIAL

         Section 5.1  Organization and  Qualification.  Comdial is a corporation
duly  organized,  validly  existing and in good  standing  under the laws of the
State of Delaware and has all necessary corporate power and authority to own its
assets and carry on its business as it is presently being conducted.  Comdial is
duly qualified and in good standing to do business in each jurisdiction in which
its business makes such qualification  necessary,  except in those jurisdictions
where  failure to be duly  qualified  and in good  standing  does not and cannot
reasonably be expected to have, in the aggregate,  a material  adverse effect on
its business.

         Section 5.2 Authority Relative to Agreement.  Comdial has all necessary
corporate  power and  authority  to execute and deliver  this  Agreement  and to
consummate the transactions  contemplated  hereby. The execution and delivery by
Comdial  of this  Agreement,  and  the  consummation  by it of the  transactions
contemplated  hereby,  have been duly  authorized  by the Board of  Directors of
Comdial and no other corporate  proceedings on the part of Comdial are necessary
with respect  thereto.  This  Agreement  has been duly executed and delivered by
Comdial, and constitutes the valid and binding obligation of Comdial enforceable
against  Comdial in accordance with its terms except as its terms may be limited
by (i)  bankruptcy,  insolvency  or similar  laws  affecting  creditors'  rights
generally  or  (ii)  general  principles  of  equity,  whether  considered  in a
proceeding in equity or at law.

         Section 5.3 No Violation. The execution and delivery by Comdial of this
Agreement does not, and the consummation of the transactions contemplated hereby
will not, (i) violate or result in a breach of any provision of the  Certificate
of Incorporation or bylaws of Comdial, or (ii) violate any law or regulation, or
any  judgment,  order or decree of any  court,  governmental  body,  commission,
agency or  arbitrator  applicable  to Comdial  or its  business  excluding  such
defaults and violations which do not and cannot reasonably be expected to have a
material adverse effect on its properties or its business.

                                   ARTICLE 6.
                            REPRESENTATIONS BY EPHONE

         Section 6.1  Organization  and  Qualification.  ePHONE is a corporation
duly  organized,  validly  existing and in good  standing  under the laws of the
State of Florida and has all necessary  corporate power and authority to own its
assets and carry on its business as it is presently being  conducted.  ePHONE is
duly qualified and in good standing to do business in each jurisdiction in which
its business makes such qualification  necessary,  except in those jurisdictions
where  failure to be duly  qualified  and in good  standing  does not and cannot
reasonably be expected to have, in the aggregate,  a material  adverse effect on
its  properties  or its  business.  ePHONE has  heretofore  delivered to Comdial
complete  and  correct  copies  of its  Articles  of  Incorporation  and  Bylaws
currently in effect.

         Section 6.2 Authority  Relative to Agreement.  ePHONE has all necessary
corporate  power and  authority  to execute and deliver  this  Agreement  and to
consummate the transactions  contemplated  hereby. The execution and delivery by
ePHONE  of  this  Agreement,  and  the  consummation  by it of the  transactions
contemplated  hereby,  have been duly  authorized  by the Board of  Directors of
ePHONE and no other  corporate  proceedings  on the part of ePHONE are necessary
with respect  thereto.  This  Agreement  has been duly executed and delivered by
ePHONE and constitutes,  and the Related  Agreements to which ePHONE is a party,
when  executed  and  delivered  by ePHONE,  will  constitute,  valid and binding
obligations of ePHONE enforceable  against ePHONE in accordance with their terms
except as their terms may be limited by (i)  bankruptcy,  insolvency  or similar
laws affecting creditors' rights generally or (ii) general principles of equity,
whether considered in a proceeding in equity or at law.

         Section 6.3 No Violation.  The execution and delivery by ePHONE of this
Agreement does not, and the consummation of the transactions contemplated hereby
will not, (i) violate or result in a breach of any  provision of the Articles of
Incorporation or bylaws of ePHONE, or (ii) violate any law or regulation, or any
judgment, order or decree of any court, governmental body, commission, agency or
arbitrator  applicable  to ePHONE or its business as  presently  conducted or as
contemplated  to be  conducted in the Business  Plan of ePHONE,  excluding  such
defaults and violations which do not and cannot reasonably be expected to have a
material adverse effect on its properties or its business.

         Section 6.4 Consents and  Approvals.  Except to the extent that failure
to obtain such consent or approval would not have material adverse effect on its
properties or its business, there is no requirement applicable to ePHONE to make
any filing  with,  or to obtain  the  consent  or  approval  of, any Person as a
condition  to  the  consummation  of  the  transactions   contemplated  by  this
Agreement.

         Section  6.5  Financial  Statements.  ePHONE has  previously  furnished
Comdial with true and complete copies of (i) the audited financial statements of
ePHONE for the  periods  ending June 30,  1999 and  December  31, 1998 and 1997,
including the notes thereto (the "Annual Financial  Statements"),  together with
the  reports on such  statements  of  ePHONE's  independent  auditors,  and (ii)
unaudited  interim  financial  statements  for the eleven  month  period  ending
November  30,  1999  (the  "Interim  Financial   Statements").   Such  financial
statements  present fairly the financial position of ePHONE as of such dates and
the results of its  operations  and changes in its  financial  position for such
periods and have been prepared in accordance with generally accepted  accounting
principles applied on a consistent basis.

         Section 6.6 No  Undisclosed  Liabilities.  Since November 30, 1999, and
except as  previously  disclosed  in writing to Comdial,  there has not been any
change,  or  development  involving a  prospective  change,  including,  without
limitation,  any  damage,  destruction  or  loss  (whether  or  not  covered  by
insurance),  which  affects  or  can  reasonably  be  expected  to  affect,  the
properties  or business of ePHONE,  and ePHONE has not entered into any contract
which can reasonably be expected to have any such effect.

         Section 6.7 Absence of Certain Changes.  Except as previously disclosed
in writing to Comdial,  ePHONE has not  incurred any  liabilities  which are not
reflected  in the  Interim  Financial  Statements  other than  those  which were
incurred  subsequent  to such date in the ordinary  course of business and which
have not and cannot  reasonably be expected to have a material adverse effect on
the properties or business of ePHONE.

         Section 6.8 Absence of Litigation. There are no actions, suits, claims,
investigations or proceedings pending or, to the knowledge of ePHONE, threatened
against  ePHONE,  before any court,  governmental  body,  commission,  agency or
arbitrator,  which have or can reasonably be expected to have a material adverse
effect or its  business  or which  seek to limit,  in any  manner,  the right of
ePHONE to  control  the  Purchased  Assets  and the  Licensed  Assets  after the
consummation of the  transactions  contemplated in this Agreement.  Furthermore,
there are no judgments,  orders or decrees of any such court, governmental body,
commission,  agency or  arbitrator  which have or can  reasonably be expected to
have any such effect.

         Section 6.9 Business Plan.  Attached hereto as Exhibit C is the current
Business  Plan of ePHONE with respect to the  Purchased  Assets and the Licensed
Assets.

                                   ARTICLE 7.
                                OTHER AGREEMENTS

         Section 7.1 Support for Imbedded Base.  The parties hereto  acknowledge
that Array's imbedded base of customers will be supported and serviced by ePHONE
following the Closing.  ePHONE agrees that it will use  commercially  reasonable
efforts to support such imbedded base from and after the Closing Date.

         Section 7.2  Investigation of Business.  From the date hereof until the
Closing,  each of the parties  hereto will afford the other  parties  hereto and
their respective  representatives,  including  attorneys and  accountants,  full
access at all reasonable times to its officers, employees, properties, contracts
and books and records to enable such other party to make a full investigation of
its business. Each party will also furnish each other party with such financial,
operating and other  information as such party may reasonably  request in making
such investigation.

         Section 7.3  Confidentiality.  The information which any party acquires
about any other party prior to consummation of the transactions  contemplated by
this  Agreement  as a result of the  investigations  permitted  hereby is termed
"Evaluation  Material."  Each  party  agrees  that  neither  it,  nor any of its
representatives,  will (i) use any such  material for any purpose not related to
the  transactions  contemplated  by this  Agreement  nor (ii)  disclose any such
material to anyone except its  representatives  who may need such information to
perform  their  respective  duties and have been  informed  of its  confidential
nature. If the transactions  contemplated by this Agreement are not consummated,
each party  agrees that it will return any  written  Evaluation  Material in its
possession,  or will destroy and will not retain any such  material,  any copies
thereof or any notes or memoranda made using such material.

         Section  7.4  Public  Announcements.  Prior to the  Closing  Date,  the
parties will consult with each other before issuing any press releases or making
any  public  statements  with  respect  to this  Agreement  or the  transactions
contemplated  hereby and will not issue any such press  release or make any such
public  statement  without the prior consent of the other,  except to the extent
required by law.

         Section 7.5 Employee Matters; Customer Solicitation.  Comdial and Array
will not object to or interfere with any efforts by ePHONE to employ the current
employees of Array. During the term of the License Agreement,  neither Array nor
Comdial shall directly or indirectly  induce or attempt to persuade any employee
of ePHONE to terminate his or her employment with ePHONE. During the term of the
License  Agreement,  neither  Array nor Comdial nor any Person  affiliated  with
either  shall  directly  or  indirectly  sell or  attempt  to sell (by  means of
solicitation  or  otherwise) to any customer to which ePHONE is providing or has
provided  Products  and  Services  (as such  terms are  defined  in the  License
Agreement)  any product or service  which is  competitive  with the Products and
Services.

         Section  7.6  Access  to  Comdial   Dealer  Network  and  Direct  Sales
Organization.  During the term of the License  Agreement,  Comdial (i) shall use
commercially  reasonable  efforts to assist ePHONE in distributing  products and
services provided by ePHONE through its direct sales organization and (ii) shall
use commercially  reasonable efforts to enable ePHONE to distribute products and
services  through  its  network  of  independent   telecommunications  equipment
dealers.

         Section 7.7 Assignment of Lease.  As soon as practicable  following the
Closing  Date,  Array shall  assign to ePHONE its  interests as lessee under the
lease to Array's business  facility  located at 1145 Herndon  Parkway,  Herndon,
Virginia, from W9/LWS Real Estate Limited Partnership, as lessor, dated February
23, 1999 ("Lease"),  and ePHONE shall,  from and after the Closing Date,  assume
and discharge the  obligations of Array arising after the Closing Date under the
Lease.  Such  assignment  of lease  shall be made by an  assignment  (the "Lease
Assignment") in substantially  the form of Lease  Assignment  attached hereto as
Exhibit D. ePHONE  shall use  commercially  reasonable  efforts to have  Comdial
released from its obligations  under the lease as soon as practicable  following
the Closing Date.

                                   ARTICLE 8.
                             CLOSING OF TRANSACTIONS

         Section 8.1 Time and Place of Closing.  The closing  ("Closing")  shall
take  place at Arnold & Porter at 4:00 p.m.  local  time on (i) March 31,  2000,
(ii) such other date as may be agreed upon by the parties (either of which dates
is referred to in this  Agreement as the "Closing  Date").  If the Closing takes
place,  the Closing and all of the  transactions  contemplated by this Agreement
shall be deemed to have occurred simultaneously and become effective at the same
time on the Closing Date.

         Section 8.2 Deliveries by Array. At the Closing, Array shall deliver to
ePHONE the following:

                  (a)  Bill of Sale  substantially  in the  form  of  Exhibit  A
         attached  hereto,  duly executed,  transferring  to ePHONE title to the
         Purchased Assets;

                  (b) License  Agreement  substantially in the form of Exhibit B
         attached hereto;

                  (c) Certified  copies of the resolutions duly adopted by Array
         constituting all necessary corporate authorization for the consummation
         by Array of the transactions contemplated by this Agreement;

                  (d) A certificate  dated as of a recent date from the Delaware
         Secretary of State as to the good standing of Array; and

                  (e)  Such  other  documents,  instruments,   certificates  and
         writings  as  reasonably  may be  requested  by ePHONE  at least  three
         business days prior to Closing.

         Section 8.3 Deliveries by ePHONE. At the Closing,  ePHONE shall deliver
to Array or Comdial the following:

                  (a)  Immediately  available funds in the amount of $2,650,000,
         by wire transfer to an account designated by Array;

                  (b) License  Agreement  substantially in the form of Exhibit B
         hereto;

                  (c) Certified copies of the resolutions duly adopted by ePHONE
         constituting all necessary corporate authorization for the consummation
         by ePHONE of the transactions contemplated by this Agreement;

                  (d) A  certificate  dated as of a recent date from the Florida
         Secretary of State as to the good standing of ePHONE; and

                  (e)  Such  other  documents,  instruments,   certificates  and
         writings  as  reasonably  may be  requested  by Array  at  least  three
         business days prior to Closing.

         Section  8.4  Deliveries  by Comdial.  At the  Closing,  Comdial  shall
deliver to ePHONE the following:

                  (f) License  Agreement  substantially in the form of Exhibit B
         attached hereto;

                  (g)  Certified  copies  of the  resolutions  duly  adopted  by
         Comdial  constituting  all necessary  corporate  authorization  for the
         consummation  by  Comdial  of the  transactions  contemplated  by  this
         Agreement;

                  (h) A certificate  dated as of a recent date from the Delaware
         Secretary of State as to the good standing of Comdial; and

                  (i)  Such  other  documents,  instruments,   certificates  and
         writings  as  reasonably  may be  requested  by ePHONE  at least  three
         business days prior to Closing.

                                   ARTICLE 9.
                            MISCELLANEOUS PROVISIONS

         Section 9.1  Obligations  of Comdial.  Comdial  hereby  guarantees  the
complete  and  timely  performance  of  the  obligations  of  Array  under  this
Agreement. Comdial agrees that if Array defaults in any of its obligations under
this  Agreement,  ePHONE may exercise  any  remedies  available to it to require
Comdial to satisfy such Array  obligations  without first being required to seek
performance of such obligations from Array.

         Section 9.2 Notices. All notices, requests,  demands, claims, and other
communications  hereunder  shall be in  writing.  Any notice,  request,  demand,
claim,  or other  communication  hereunder  shall be deemed  duly given (i) upon
confirmation  of receipt of  facsimile;  (ii) one (1) business day following the
date sent when sent by  overnight  delivery;  or (iii)  five (5)  business  days
following  the date mailed when mailed by  registered  or certified  mail return
receipt requested and postage prepaid to the following address:

         If to Array or Comdial:

                  Comdial Corporation
                  Attention: William G. Mustain
                  1180 Seminole Trail
                  Charlottesville, Virginia 22906
                  Phone:     (804) 978-2518
                  Fax:       (804) 978-2512
                  Email:     bill.mustain@comdial.com

         Copy to:

                  McGuire, Woods, Battle & Boothe LLP
                  Attention: Robert E. Stroud, Esquire
                  Court Square Building
                  310 Fourth Street NE, Suite 300
                  Post Office Box 1288
                  Charlottesville, Virginia 22902-1288
                  Phone:     (804) 977-2511
                  Fax:       (804) 980-2272
                  Email:     restroud@mwbb.com

         If to ePHONE:

                  ePHONE Telecom, Inc.
                  Attention:  Robert G. Clarke
                  355 Burrard Street, Suite 1000
                  Vancouver, British Columbia
                  Canada V6C 2G8
                  Facsimile No.:  (202) 942-5999
                  Phone:     (604) 482-6116
                  Fax:       (604) 482-1116
                  Email:     rclarke@ephonetel.com

         Copy to:

                  Arnold & Porter
                  Attention:  Paul D. Freshour
                  555 Twelfth Street, N.W.
                  Washington, D.C.  20004-1202
                  Phone:     (202) 942-5872
                  Fax:       (804) 942-5999
                  Email:     paul freshour@aporter.com

         Section 9.3 Arbitration

                  (a) Any dispute, controversy or claim arising under, out of or
         relating to the  Agreement or the License  Agreement  (any  "Dispute"),
         shall be solely,  finally and  conclusively  settled by  arbitration in
         accordance with the Commercial  Arbitration  Rules (the "Rules") of the
         American  Arbitration  Association  (the  "AAA")  in  force  when  such
         arbitration  is  commenced.   The  arbitration   shall  take  place  in
         Washington,  D.C. The Dispute shall be decided in  accordance  with the
         laws of the  Commonwealth of Virginia.  In the event that more than one
         Dispute  is  pending  at  the  same  time,   such  Disputes   shall  be
         consolidated in a single arbitral proceeding.

                  (b) In any dispute between the parties  hereto,  the number of
         arbitrators  shall be three.  If the parties are unable to agree on the
         arbitrators,  the arbitrators  shall be selected in accordance with the
         Rules.

                  (c) The parties hereto intend that the provisions to arbitrate
         set  forth  herein  be  valid,   enforceable   and   irrevocable.   The
         arbitrator's  award shall be final and binding  upon the  parties.  The
         parties  shall carry out the final order on the award without delay and
         waive their right to assert any form of recourse against,  or objection
         or defense to such order or its enforcement  insofar as such waiver can
         validly  be made.  Judgment  upon the award may be entered by any court
         having jurisdiction  thereof or having jurisdiction over the parties or
         their assets or application may be made for judicial  acceptance of the
         award and an order of enforcement, as the case may be.

                  (d) Each  party to the  arbitration  proceeding  shall pay the
         fees and expenses of such party's  attorney's and  witnesses.  The fees
         and expenses of the arbitrator and all other expenses shall be borne by
         the party  that loses the  arbitration.  The  parties  agree that if it
         becomes necessary for any party to enforce an arbitral award by a legal
         action or additional arbitration or judicial methods, the party against
         whom   enforcement  is  sought  shall  pay  all  reasonable  costs  and
         attorneys' fees incurred by the party seeking to enforce the award.

         Section 9.4  Governing  Law.  This  Agreement  shall be governed in all
respects, and it and the transactions contemplated hereby shall be construed and
interpreted,  by the laws of the  Commonwealth of Virginia without regard to its
choice of law rules.

         Section 9.5 Entire Agreement. This Agreement,  including the Schedules,
the Business Plan of ePHONE and the Array Related  Agreements  attached  hereto,
constitutes the entire agreement between the parties with respect to the subject
matter hereof,  and supersedes  all other prior  agreements and  understandings,
both  written and oral,  among the parties  with  respect to the subject  matter
hereof.

         Section 9.6 Counterpart  Copies.  This Agreement may be executed in two
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall constitute one and the same instrument.

         Section  9.7 No Third  Party  Beneficiaries  This  Agreement  shall not
confer any rights or remedies  upon any person or entity  other than the parties
and their respective successors and permitted assigns.

         Section 9.8 Succession and Assignment.  This Agreement shall be binding
upon and  inure to the  benefit  of the  parties  hereto  and  their  respective
successors and permitted  assigns.  Any of the parties hereto shall be permitted
to assign this Agreement to a successor in interest of all or substantially  all
of its assets, or to an affiliated entity.

         Section 9.9 Amendments. No amendment of any provision of this Agreement
shall be valid  unless  the  amendment  shall be in  writing  and  signed by all
parties hereto.

         Section  9.10  Waivers.   No  waiver  by  any  party  of  any  default,
misrepresentation,  or breach of warranty or covenant  hereunder,  regardless of
whether  intentional,  shall be deemed  to  extend  to any  prior or  subsequent
default,  misrepresentation,  or breach of  warranty or  covenant  hereunder  or
affect in any way any rights  arising by virtue of any prior or subsequent  such
occurrence.

         Section 9.11 Severability. Any term or condition of this Agreement that
is invalid or  unenforceable  in any  situation  in any  jurisdiction  shall not
affect the validity or  enforceability  of the  remaining  terms and  provisions
hereof or the validity or  enforceability  of the offending term or provision in
any other situation or in any other jurisdiction.

         Section 9.12  Construction.  The parties have participated  mutually in
the  negotiation  and drafting of this  Agreement.  In the event an ambiguity or
question of intent or interpretation  arises,  this Agreement shall be construed
as if drafted  mutually  by the parties  and no  presumption  or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this Agreement.

         Section 9.13 Headings.  The Article and Section  headings  contained in
this Agreement are inserted for convenience only and shall not affect in any way
the meaning or interpretation of this Agreement.

         [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK;
SIGNATURES ARE ON THE NEXT PAGE]

<PAGE>

         IN  WITNESS  WHEREOF,  each of the  parties  hereto has  executed  this
Agreement by its duly authorized officer as of the date first set forth above.

                                   ARRAY TELECOM CORPORATION

                                   By:      /s/  William G. Mustain
                                           ----------------------------------
                                   Name:   William G. Mustain
                                           ----------------------------------
                                   Title:  Chairman
                                           ----------------------------------

                                   ePHONE TELECOM, INC.

                                   By:     /s/  JG
                                           ----------------------------------
                                   Name:   John G. Fraser
                                           ----------------------------------
                                   Title:  Director, Executive Vice President
                                           ----------------------------------

                                   COMDIAL CORPORATION

                                   By:     /s/ William G. Mustain
                                           ----------------------------------
                                   Name:   William G. Mustian
                                           ----------------------------------
                                   Title:  President/CEO
                                           ----------------------------------

<PAGE>

                                                                       EXHIBIT A

                              FORM OF BILL OF SALE

         This Bill Of Sale And  Assignment  ("Bill of Sale") is made as of March
31, 2000, by ARRAY TELECOM  CORPORATION,  a corporation  incorporated  under the
laws of the State of Delaware  and having its  principal  office at 1145 Herndon
Parkway, Herndon, Virginia 20170 ("Seller"), in favor of ePHONE TELECOM, INC., a
corporation  incorporated  under the laws of the State of Florida and having its
principal office at 355 Burrard Street, Suite 1000, Vancouver, British Columbia,
Canada V6C 2G8 ("Buyer").

                                  INTRODUCTION

         A. Seller and Buyer are parties to a Strategic  Alliance Agreement (the
"Agreement")  dated as of March  31,  2000  among  Seller,  Buyer,  and  Comdial
Corporation,  a  Delaware  corporation,  pursuant  to which  Buyer has agreed to
purchase  certain  listed  assets of the Seller.  Terms which are defined in the
Agreement  and used in this Bill of Sale have the same  meanings in this Bill of
Sale as they have in the Agreement.

         B.  The  Agreement   provides,   among  other  things,   that  for  the
considerations  provided  therein,  Seller  will sell to Buyer,  and Buyer  will
purchase  from  Seller,  the fixed  assets of Seller used in its  business  (the
"Purchased Assets").

         C. The purpose of this Bill of Sale is to effect the  transfer to Buyer
of the Purchased Assets.

                               TRANSFER OF ASSETS

         NOW, THEREFORE,  for the considerations set forth in the Agreement, the
receipt and sufficiency of which is hereby acknowledged:

         1. Seller hereby  sells,  transfers,  conveys,  assigns and delivers to
Buyer the Purchased Assets used in the conduct of the business of Seller, listed
in  Schedule 1 to this Bill of Sale,  and all of which  comprise  the  Purchased
Assets.

         2. Seller  hereby  authorizes  Buyer,  as its  assignee,  to demand and
receive any and all of the Purchased Assets transferred by this Bill of Sale, to
give  receipts and releases for and in respect of the same, or any part thereof,
and to institute and prosecute any  proceedings  which Buyer may deem  necessary
for the collection,  or reduction to possession, of any of the Purchased Assets,
or for the  enforcement  of any claim or right of any kind,  transferred by this
Bill of Sale.

         3. Seller hereby  agrees that,  from time to time after the delivery of
this  Bill of Sale,  it  will,  at the  request  of Buyer  and  without  further
consideration,  promptly  take such further  action and execute and deliver such
additional assignments,  bills of sale, consents or other similar instruments as
may be  necessary to complete  the  transfer of the title or  possession  of the
Purchased Assets to, or to vest title to them in, Buyer.

         4. The  provisions  of this Bill of Sale are for the  benefit of Buyer,
its successors and assigns, and all rights hereby granted Buyer may be exercised
by Buyer, its successors or assigns.

         IN WITNESS  WHEREOF,  Seller has  executed  this Bill of Sale to by its
duly authorized officere as of the date first set forth above.

                                         ARRAY TELECOM CORPORATION

                                         By :    /s/ William G. Mustain
                                                ------------------------------
                                         Name:   William G. Mustain
                                                ------------------------------
                                         Title:  Chairman
                                                ------------------------------

\\COR\21329.2

<PAGE>
                                                                       EXHIBIT B

                            FORM OF LICENSE AGREEMENT
                                      AMONG
                           ARRAY TELECOM CORPORATION,
                              ePHONE TELECOM, INC.
                                       AND
                               COMDIAL CORPORATION

         This License Agreement (this "Agreement") is made as of March 31, 2000,
by and among ARRAY TELECOM  CORPORATION,  a corporation  incorporated  under the
laws of the State of Delaware  and having its  principal  office at 1145 Herndon
Parkway, Herndon, Virginia 20170 ("Array"),  ePHONE TELECOM, INC., a corporation
incorporated  under the laws of the State of Florida  and  having its  principal
office at 355 Burrard Street, Suite 1000,  Vancouver,  British Columbia,  Canada
V6C 2G8 ("ePHONE"),  and COMDIAL CORPORATION,  a corporation  incorporated under
the laws of the  State of  Delaware  and  having  its  principal  office at 1180
Seminole Trail, Charlottesville, Virginia 22906 ("Comdial").

                                    RECITALS

         A.  This  Agreement  is  executed  in  conjunction  with the  Strategic
Alliance Agreement dated March 31, 2000, by and among Array, ePHONE, and Comdial
(the "Strategic  Alliance  Agreement"),  pursuant to which,  among other things,
ePHONE purchased certain of the assets of Array, excluding intellectual property
assets.

         B. Array is willing to grant  ePHONE a license to Array's  Intellectual
Property, as hereinafter defined, on the terms and conditions set forth herein.

         C. Array is a wholly owned subsidiary of Comdial. Comdial is willing to
assist ePHONE with marketing the Products and Services,  as hereinafter defined,
through  Comdial's  existing  distribution  channels,  which  include  over 2000
independent telecommunications equipment dealers.

                                    AGREEMENT

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

                                    ARTICLE 1
                                   DEFINITIONS

         For purposes of this Agreement:

         Section  1.1  "Copyrights"  means  any  work  containing  copyrightable
subject matter that Array owns or has the right to license to others relating to
Products and Services,  including  without  limitation works registered with the
United States Copyright Office or works for which an application to register the
work with the United States Copyright Office has been filed.

         Section 1.2 "Intellectual  Property" means the entire right, title, and
interest in and to all proprietary  rights  encompassed within the categories of
Copyrights, Know-How, and Patents, and the Mark.

         Section  1.3  "Know-How"  means  unpatented   technology,   inventions,
designs,  drawings,  processes,  recipes, formulae, data, technical information,
and other industrial, commercial property that: (i) are known to Array as of the
Effective Date; (ii) are secret,  in the sense that they are not generally known
or easily accessible to others; and (iii) relate to the Products and Services. A
list of Know-How licensed  hereunder is attached to this Agreement as Schedule 2
and incorporated by reference herein.

         Section 1.4 "Mark"  means the common law  trademark  and  service  mark
"ARRAY".

         Section  1.5  "Patents"  means the  United  States  patents  and design
patents that had been issued as of the  Effective  Date as well as United States
patent  applications  filed as of the Effective Date. A list of Patents licensed
hereunder  is  attached to this  Agreement  as  Schedule 1 and  incorporated  by
reference herein.

         Section 1.6 "Products and Services" means: (i) VoipGate,  Array Version
2, Array Series 3000, and any products  developed  from the foregoing;  and (ii)
international  long  distance  telecommunications  services  that allow users to
perform  phone-to-phone  dialing via Voice Over Internet  Protocol,  and related
services.

         Section 1.7 Any  capitalized  term  contained in this Agreement that is
not expressly  defined herein shall be deemed to have the meaning ascribed to it
by the Strategic Alliance Agreement.

                                    ARTICLE 2
                             EFFECTIVE DATE AND TERM

         Section 2.1 Effective Date. This Agreement shall be effective as of the
date first set forth above (the "Effective Date").

         Section 2.2 Term. This Agreement and the licenses  granted herein shall
become  effective  as of the  Effective  Date and shall  remain in effect for an
initial term of five (5) years.

         Section 2.3 ePHONE's  Option to Renew the  Agreement or to Purchase the
Intellectual  Property.  Upon  the  conclusion  of  the  initial  term  of  this
Agreement, ePHONE, in its sole discretion, may elect: (i) to allow the Agreement
to expire;  (ii) to renew the Agreement under the identical terms and conditions
set  forth  hereunder  for an  additional  term of five (5)  years;  or (iii) to
terminate the Agreement by purchasing the Intellectual Property.

                  (a)  In  order  to  exercise   its  option  to  purchase   the
         Intellectual Property, ePHONE must give Array and Comdial notice of its
         election to exercise such option within six (6) months prior to the end
         of the initial term of this  Agreement.  In the event ePHONE  elects to
         exercise its option to purchase the Intellectual Property, ePHONE shall
         be entitled to purchase the  Intellectual  Property for the fair market
         value of the  Intellectual  Property,  determined  at the  time  ePHONE
         exercises its option to purchase the  Intellectual  Property.  For this
         purpose,  the fair market value of the  Intellectual  Property shall be
         determined by two investment bankers,  one selected by Array or Comdial
         and the other selected by ePHONE. If the two investment bankers are not
         able to agree upon the fair market value of the Intellectual  Property,
         the investment  bankers shall choose a third investment  banker and the
         average of the values asserted by the two investment bankers who assert
         the two amounts  closest in value shall be deemed the fair market value
         of the Intellectual Property.

                  (b) In the event ePHONE  exercises  its option to purchase the
         Intellectual  Property,  ePHONE agrees to grant Comdial and Array,  and
         their successors and affiliates, a nonexclusive,  irrevocable,  royalty
         free license to the Intellectual Property.

                                    ARTICLE 3
                        LICENSE TO INTELLECTUAL PROPERTY

         Section  3.1  Grant  of  Patent  License.  Subject  to  the  terms  and
conditions of this Agreement,  Array grants to ePHONE,  and ePHONE  accepts,  an
exclusive right and license to the Patents to make, have made, use, and sell the
Products  and  Services,  on a  worldwide  basis.  ePHONE  shall be  entitled to
sublicense,  assign,  or transfer the rights  granted  herein  without the prior
written  consent of Array.  The license  granted herein shall terminate upon the
expiration or termination of this Agreement.

                  (a) Patent License  Territory.  ePHONE  acknowledges  that the
         Patents cover only the United States; practicing the technology covered
         by the Patents  outside of the United  States will be at ePHONE's  sole
         risk and discretion.

                  (b)  Patent  License  Term.  Notwithstanding  anything  to the
         contrary  provided  herein,  the license to the Patents  granted herein
         shall terminate upon the conclusion of the term of the relevant Patent,
         unless sooner terminated pursuant to the terms of this Agreement.

                  (c) Notice.  When  utilizing  the Patents,  ePHONE agrees that
         where reasonable and practical, any patented designs,  devices, objects
         of manufacture,  or any other patented items shall bear the appropriate
         patent notice.

                  (d) Prosecution of Patent Applications.  ePHONE shall make all
         reasonable  efforts to assist Array or Comdial with the  prosecution of
         any  patent  applications  encompassed  within  the  definition  of the
         Patents licensed hereunder, including executing any necessary documents
         and providing  such  evidence and expert  assistance as ePHONE may have
         within its control.

         Section  3.2  Grant of  Know-How  License.  Subject  to the  terms  and
conditions of this Agreement,  Array grants to ePHONE,  and ePHONE  accepts,  an
exclusive  right and license to the Know-How to make,  have made,  use, and sell
the Products and  Services,  on a worldwide  basis.  ePHONE shall be entitled to
sublicense,  assign,  or transfer the rights  granted  herein  without the prior
written  consent of Array.  The license  granted herein shall terminate upon the
expiration or termination of this Agreement.

         Section  3.3  Grant of  Copyright  License.  Subject  to the  terms and
conditions of this Agreement,  Array hereby grants ePHONE an exclusive right and
license to the  Copyrights  for use in connection  with selling,  manufacturing,
marketing or rendering of Products and Services,  on a worldwide  basis.  ePHONE
shall be entitled to  sublicense,  assign or transfer the rights  granted herein
without the prior written  consent of Array.  The license  granted  herein shall
terminate upon the expiration or termination of this Agreement.

                  (a)  Notice.  When using the  Copyrights,  ePHONE  agrees that
         where  reasonable  and  practicable,  use of the  Copyrights  shall  be
         accompanied  by the symbol (C), the date of copyright,  and the name of
         the copyright owner.

         Section 3.4 Grant of Mark License.  Subject to the terms and conditions
of this  Agreement,  Array grants to ePHONE,  and ePHONE  accepts,  an exclusive
right  and  license  to the Mark as  necessary  to  produce,  promote,  and sell
Products and Services, on a worldwide basis. ePHONE acknowledges and agrees that
its use of the Mark shall inure to Array's benefit.  ePHONE shall be entitled to
sublicense,  assign,  or transfer the rights  granted  herein  without the prior
written  consent of Array.  The license  granted herein shall terminate upon the
expiration or termination of this Agreement.

                  (a) Quality Control.  ePHONE agrees that all Products to which
         the Mark is affixed shall be formulated,  manufactured,  promoted,  and
         sold or provided in a first rate manner and all Services with which the
         Mark is  associated  shall be rendered in a first rate  manner.  ePHONE
         understands and agrees that Array has the right to and will monitor the
         quality of Products and Services  provided under the Mark. Upon written
         request  from  Array or  Comdial,  ePHONE  shall  provide  to Array and
         Comdial either:  (i) a reasonable  number of samples of the Products to
         which the Mark is affixed,  or (ii) a reasonable written description of
         the  Services  that  ePHONE  provides  under the Mark and the manner in
         which the Mark is used in connection with such Services,  so that Array
         and Comdial may  monitor the quality of such  Products or Services  and
         otherwise protect and maintain Array's rights in the Mark. Upon written
         notice to ePHONE,  representatives  of Array or  Comdial  may visit and
         inspect  ePHONE's  facilities  in order to monitor  the  quality of the
         Products and Services.

                      In the event Array or Comdial  reasonably  determines that
         the Products sold or Services provided by ePHONE under the Mark are not
         of a sufficiently high quality, Array or Comdial shall so notify ePHONE
         in writing  and  ePHONE  shall  have  thirty  (30) days in which to (i)
         reassure Array and Comdial that the quality of the Products or Services
         is in fact commensurate with the specified  standard or (ii) take steps
         to  improve  the  quality  of the  Products  or  Services  to meet such
         standard.  If,  at the end of such  thirty  (30) day  period,  Array or
         Comdial is not  reasonably  satisfied  that the quality of the Products
         sold or Services  provided by ePHONE under the Mark meets the specified
         standard,  Array or Comdial may terminate  this  Agreement  upon thirty
         (30) days' written notice to ePHONE.

                  (b) Trademark and Service Mark Notices. When affixing the Mark
         to Products,  ePHONE agrees that where reasonable and practicable,  the
         Mark shall be accompanied by the symbol (TM) on labels,  packaging, and
         advertising  and  promotional   materials.   When  using  the  Mark  in
         connection  with  Services,  ePHONE  agrees that where  reasonable  and
         practicable,  the  Mark  shall be  accompanied  by the  symbol  (sm) on
         advertising and promotional materials.

         Section  3.5  Retention  of  Ownership  Rights  and Right to License or
Assign.  Nothing  in  this  Agreement  or in  ePHONE's  use of the  Intellectual
Property shall grant ePHONE any rights in or to the Intellectual  Property other
than the rights expressly  licensed  hereunder.  The licenses granted herein are
exclusive as between Array and unrelated third parties. Nonetheless, Array shall
retain all rights in and to the  Intellectual  Property,  including the right to
license or assign the Intellectual Property, in whole or in part, to Comdial, to
any  majority  owned  subsidiary  of Comdial,  or to any  successor to Comdial's
business,  provided  that such license or assignment  shall have no  detrimental
effect  on  ePHONE's  rights  and  obligations  hereunder.  Notwithstanding  the
foregoing  or anything  to the  contrary  contained  herein,  neither  Array nor
Comdial,  nor any successor or affiliate  thereof,  shall be entitled to use the
Mark in  connection  with  products  or  services  that are  marketed  in direct
competition with the Products and Services.

                                    ARTICLE 4
                                    ROYALTIES

         Section 4.1 Royalty Payments. In partial consideration for the licenses
to Intellectual  Property granted herein and for the  transactions  contemplated
under the Strategic  Alliance  Agreement,  ePHONE shall pay Array, or such other
entity as Array may designate, a royalty equal to two percent (2%) (the "Royalty
Rate") of ePHONE's Consolidated Gross Sales, as hereinafter defined.

                  (a) The royalty amounts set forth herein shall accrue upon the
         recognition  by ePHONE  of  revenues  for  transactions  that  would be
         included in  Consolidated  Gross Sales and shall be paid by ePHONE on a
         calendar  quarterly  basis. For each of the first three (3) quarters of
         each calendar year,  such quarterly  royalty amount shall be calculated
         at the Royalty  Rate  applied to  Consolidated  Gross Sales during such
         quarter,  and shall be paid not later than  forty-five  (45) days after
         the end of such quarter.  For the fourth quarter of each calendar year,
         such  quarterly  royalty amount shall be an amount equal to the Royalty
         Rate applied to  Consolidated  Gross Sales for the calendar year,  less
         the  quarterly  royalty  payment  amounts  made for the prior three (3)
         quarters  of that year,  and shall be paid not later than  ninety  (90)
         days after the end of such calendar year.

                  (b) For  purposes  of  determining  the  royalty to be paid by
         ePHONE,  the term  "Consolidated  Gross  Sales"  shall  mean all  sales
         resulting from ePHONE's business  activities,  as reflected in ePHONE's
         Business Plan.

                  (c) Each royalty  payment  hereunder shall be accompanied by a
         written report describing the calculation of such payment. Furthermore,
         ePHONE agrees to maintain  complete and accurate records  sufficient to
         substantiate  the calculation of payments made hereunder.  Array or its
         designee  may,  from time to time,  inspect  such records to verify the
         accuracy of payments made  hereunder;  provided,  however,  that ePHONE
         shall  receive  at  least  thirty  (30)  days  written  notice  of such
         inspections and such  inspections  shall take place at ePHONE's offices
         during ePHONE's  regular  business  hours.  Array or its designee shall
         bear all  costs of such  inspections,  unless an  inspection  reveals a
         discrepancy  of more than three percent (3%) in ePHONE's  favor between
         the royalty  actually  paid and the royalty that should have been paid,
         based on ePHONE's  Consolidated Gross Sales, in which case ePHONE shall
         bear all costs of the inspection that revealed the discrepancy.

                  (d) Notwithstanding  the foregoing,  ePHONE shall pay to Array
         or its designee the following minimum royalty amounts:

                           (i)  During  the  first  year  of the  term  of  this
                  Agreement, ePHONE shall pay a minimum annual royalty amount of
                  $180,000  (the "First  Year  Minimum  Royalty").  In the event
                  Consolidated  Gross  Sales  for the  first  year are less than
                  $9,000,000,  ePHONE shall pay such additional  royalty amounts
                  as shall be necessary to cause the total  royalty  amount paid
                  for such year to be at least  equal to the First Year  Minimum
                  Royalty.  Such  amounts  shall be paid not later  than the due
                  date for the first  quarterly  royalty  payment  due after the
                  close of the first year.

                           (ii) For each  calendar  quarter after the first year
                  of the term of this  Agreement,  ePHONE  shall  pay a  minimum
                  quarterly  royalty amount of $125,000 (the "Quarterly  Minimum
                  Royalty").  In the event  Consolidated  Gross Sales during any
                  quarter  are  less  than  $6,250,000,  ePHONE  shall  pay such
                  additional  royalty amounts as shall be necessary to cause the
                  total  royalty  amount  paid for such  quarter  to be at least
                  equal to the  Quarterly  Minimum  Royalty.  In the  event  any
                  calendar  quarter  shall be less than  three (3)  months,  the
                  Quarterly  Minimum  Royalty for such quarter shall be prorated
                  on a daily or other appropriate basis.

         Section 4.2  Non-Payment  of Royalty  Amounts.  In the event  ePHONE is
unable,  after  exhausting  all of its  consolidated  cash and  cash  equivalent
assets,  to pay Array or its designee the full amount of any royalty  payment at
the time the payment is due, the following provisions shall be applicable.

                  (a) ePHONE shall give Array or its designee notice of ePHONE's
         inability to pay any portion of any royalty payment, which notice shall
         be accompanied by a written statement by ePHONE's principal lenders and
         credit facilities  confirming  ePHONE's  inability to make such payment
         and the fact that ePHONE has exhausted all of its consolidated cash and
         cash equivalent assets.

                  (b) The  total  unpaid  amount  of any  royalty  payment  (the
         "Delinquent  Payment")  shall accrue interest at the annual rate of ten
         percent  (10%) during the first year after the  Delinquent  Payment was
         due.  For each three (3) month  period  thereafter,  for so long as any
         portion of the Delinquent  Payment  remains  unpaid,  the interest rate
         applicable  to  the  Delinquent   Payment  will  increase  by  one  (1)
         percentage point for each such three (3) month period.

                  (c) In its sole discretion, Array or its designee may elect to
         accept  ePHONE  stock in lieu of the  Delinquent  Payment  and  accrued
         interest thereon. If Array or its designee exercises this option, Array
         or its designee  shall be entitled to receive an amount of ePHONE stock
         equivalent in value to the Delinquent  Payment,  calculated at a twenty
         percent (20%)  discount from the average of the closing  prices of such
         stock on the five (5) trading  days prior to the date on which Array or
         its designee  elects to exercise this option.  The equivalent  value so
         determined may be paid to Array or its designee either in ePHONE common
         stock or in warrants for the purchase of ePHONE common stock, the terms
         of which are  reasonably  satisfactory  to Array or its  designee,  and
         which  provide for an exercise  price of not more than one cent ($0.01)
         per share.  ePHONE agrees to provide  Array or its designee  demand and
         piggy back registration rights for registration on an established stock
         exchange or on the Nasdaq  national  market for its shares,  or for the
         warrants  and the  warrant  shares to be issued  upon  exercise  of the
         warrants,  and to assist in the registration process.  Array shall have
         at least two (2)  demand  registration  rights for each year so long as
         any of  such  shares,  or  such  warrants  or  warrant  shares,  remain
         unregistered. Within sixty (60) days after the Closing Date, as defined
         in the Strategic Alliance Agreement,  the parties agree to negotiate in
         good faith to execute a  registration  rights  agreement with terms and
         conditions  that are  consistent  with the terms of this  Agreement and
         that are customary and usual with respect to such agreements.

                  (d)  Notwithstanding  any of the provisions of this Agreement,
         in the event any royalty  payment or portion thereof remains unpaid for
         one (1) year, or Array or its designee accept warrants for such payment
         and the warrants are not  registered  within such year,  then  ePHONE's
         license to the  Intellectual  Property shall no longer be exclusive and
         Array shall be entitled to license the  Intellectual  Property to third
         parties other than ePHONE.

                                    ARTICLE 5
                OWNERSHIP AND PROTECTION OF INTELLECTUAL PROPERTY

         Section 5.1 Ownership.  Nothing in this Agreement or in ePHONE's use of
the  Intellectual   Property  shall  grant  ePHONE  any  rights  in  or  to  the
Intellectual Property other than the rights expressly licensed hereunder. ePHONE
acknowledges  Array's  rights in the  Intellectual  Property.  ePHONE  shall not
commit, or cause any third party to commit, any act challenging,  contesting, or
in any way  impairing  or  attempting  to  impair  Array's  rights in and to the
Intellectual Property.

         Section 5.2  Infringement  by Third  Parties.  If ePHONE  learns of any
activity by a third party that might  constitute  infringement of Array's rights
in any of the Intellectual Property, or if any third party asserts that ePHONE's
use of the Intellectual  Property constitutes  unauthorized use or infringement,
ePHONE shall so notify Array. Any action or litigation  resulting from any claim
of infringement  arising hereunder shall be handled by Array or Comdial.  ePHONE
shall  make all  reasonable  efforts to assist  Array or  Comdial  with any such
action or litigation, including providing such evidence and expert assistance as
ePHONE may have within its control.

         Section  5.3  Rights  in  Improvements,   Developments,   Enhancements,
Modifications, and Inventions.

                  (a) CTVoice  Release 2A. Within thirty (30) days following the
         Effective  Date,  ePHONE shall deliver to Array the source code for the
         product   CTVoice  Release  2A,  which  product  shall  have  the  same
         functionality  and all of the  capabilities of the product Array Series
         3000. Array, or such other entity as Array may designate, shall own all
         rights  in  such  source  code,   including   without   limitation  all
         intellectual  property rights. The source code shall be included within
         the definition of Intellectual Property for purposes of this Agreement,
         and it shall be licensed to ePHONE pursuant to the terms and conditions
         hereunder.

                           (i)  Until  the first  anniversary  of the  Effective
                  Date,  ePHONE  shall  provide  to  Array or its  designee  any
                  improvements,  developments,  enhancements,  modifications, or
                  inventions  that  resolve  any  functional  problems  or other
                  technological difficulties with the CTVoice Release 2A product
                  ("Bug  Fixes").  ePHONE shall own all rights in the Bug Fixes,
                  including without limitation all intellectual property rights.
                  Nonetheless,  by providing  Array or its designee with the Bug
                  Fixes,  ePHONE  shall be deemed to have  granted  Array or its
                  designee,  and such  parties'  successors  and  affiliates,  a
                  nonexclusive,  irrevocable,  royalty  free  license to the Bug
                  Fixes.

                           (ii)  After the first  anniversary  of the  Effective
                  Date,  ePHONE and Array or its designee  agree to negotiate in
                  good faith regarding the terms and conditions  under which any
                  Bug Fixes  developed,  invented,  or created by  employees  or
                  agents of ePHONE after the first  anniversary of the Effective
                  Date may be licensed to Array or its  designee.  ePHONE  shall
                  charge  Array  or its  designee  rates  at least as low as the
                  lowest  rates  charged to third  parties not  affiliated  with
                  ePHONE for such licenses.

                  (b) Improvements, Developments,  Enhancements,  Modifications,
         and Inventions other than CTVoice Release 2A.

                           (i) If  any of the  employees  or  agents  of  ePHONE
                  improves, develops, enhances, modifies, or invents technology,
                  works,  or other  intangible  property,  related to or arising
                  from the  Intellectual  Property  licensed  hereunder,  ePHONE
                  shall  own all  rights  in such  technology,  works,  or other
                  intangible   property,   including   without   limitation  all
                  intellectual property rights.

                           (ii) If any of the  employees  or  agents of Array or
                  Comdial improves,  develops,  enhances,  modifies,  or invents
                  technology, works, or other intangible property, related to or
                  arising from the  Intellectual  Property  licensed  hereunder,
                  Array or Comdial, as appropriate, shall own all rights in such
                  technology,  works, or other  intangible  property,  including
                  without limitation all intellectual property rights.

                           (iii) The parties  agree to  negotiate  in good faith
                  regarding   the  terms   and   conditions   under   which  any
                  improvements,  developments,  enhancements,  modifications, or
                  inventions  encompassed by this Section 5.3(b) may be licensed
                  to the other parties.  The parties shall charge rates at least
                  as  low  as  the  lowest  rates  charged  by  the  parties  to
                  unaffiliated third parties for such licenses.

                                    ARTICLE 6
                    WARRANTIES, DISCLAIMERS, INDEMNIFICATION,
                           AND LIMITATION OF LIABILITY

         Section 6.1  Warranties.  ePHONE  represents and warrants that it shall
use the  Intellectual  Property only in accordance with the terms and conditions
of this Agreement.

         Section 6.2 Representations and Disclaimers.

                  (a) Array and Comdial  each  represent  and  warrant  that the
         Patents set forth on Schedule 1 and the  Know-How set forth on Schedule
         2 accurately list all of the Intellectual  Property owned by Array that
         has been duly registered  with, filed in, or issued by, as the case may
         be,  the United  States  Patent and  Trademark  Office.  Array owns the
         entire  right,  title,  and  interest  in and to the  Patents  and  the
         Know-How,  including without  limitation the exclusive right to use and
         license the same. To the knowledge of Array,  no Person,  as defined in
         the Strategic Alliance Agreement, is infringing upon any of the Patents
         or the Know-How.

                  (b)  The   Intellectual   Property   constitutes  all  of  the
         intellectual  property necessary to conduct the business and operations
         of Array as conducted as of the  Effective  Date.  To the  knowledge of
         Array,  there is no basis for any claim of  infringement by any Person,
         as defined in the Strategic Alliance  Agreement,  with regard to any of
         the Intellectual Property.

                  (c) Notwithstanding  the foregoing,  neither Array nor Comdial
         represents or warrants that: (i) the Intellectual  Property is suitable
         for use in  connection  with  Products  or  Services;  (ii)  use of the
         Intellectual  Property will enable ePHONE to obtain  specific  results;
         (iii) the  Intellectual  Property does not infringe the rights of third
         parties;  or (iv) use of the  Intellectual  Property will not cause any
         loss, damage, or injury.  ePHONE will use the Intellectual  Property at
         its own risk and neither Array nor Comdial shall be responsible for any
         Products  or  Services  provided  through  the use of the  Intellectual
         Property or for any other exploitation of the Intellectual Property.

         Section 6.3 Indemnification.

                  (a) ePHONE agrees to be solely responsible for, and to defend,
         indemnify,  and hold Array and Comdial,  and any of their successors or
         affiliates,  harmless  against  any and  all  claims,  actions,  suits,
         liabilities,  demands,  expenses (including  reasonable attorneys' fees
         and  disbursements),  losses,  costs,  or damages  asserted  against or
         incurred by Array,  Comdial,  or any of their successors or affiliates,
         arising out of or in connection with (i) Products  produced or Services
         rendered  by  ePHONE,  (ii)  the use of the  Intellectual  Property  by
         ePHONE, or (iii) any breach of ePHONE's obligations hereunder.

                  (b) Array and  Comdial,  jointly  and  severally,  agree to be
         solely responsible for, and to defend,  indemnify, and hold ePHONE, and
         any of its  successors  or  affiliates,  harmless  against  any and all
         claims,  actions,  suits,  liabilities,  demands,  expenses  (including
         reasonable  attorneys'  fees  and  disbursements),  losses,  costs,  or
         damages  asserted  against  or  incurred  by  ePHONE,  or  any  of  its
         successors or affiliates,  arising out of or in connection with (i) any
         failure of the  representations and warranties set forth in Section 6.2
         of this  Agreement to be true and correct or (ii) any breach of Array's
         or Comdial's obligations hereunder.

         Section 6.4 Limitation of Liability.  No party to this Agreement  shall
under any  circumstances be liable for any special,  incidental,  consequential,
indirect,  or  punitive  damages  arising  from  breach of  warranty,  breach of
contract,  negligence, or any other legal theory arising from or related to this
Agreement,  even if such party or its agents or  employees  have been advised of
the possibility of such damages.

                                    ARTICLE 7
                             DEFAULT AND TERMINATION

         Section  7.1  Events  of  Default.  Any  one  of  the  following  shall
constitute an Event of Default by ePHONE:

                  (a) ePHONE  defaulting  in the  performance  of any  covenant,
         agreement,  term, or provision under this  Agreement,  and such default
         continuing  for a period  of  thirty  (30) days  after  written  notice
         thereof by Array or Comdial to ePHONE;

                  (b)  ePHONE  filing  a  voluntary   petition  for  bankruptcy,
         reorganization,  or an  arrangement  under any bankruptcy or insolvency
         law, or an involuntary  petition under any such law being filed against
         ePHONE and not dismissed within ninety (90) days; or

                  (c)  ePHONE  making  an  assignment  for  the  benefit  of its
         creditors.

         Section 7.2 Remedies.  Without  limiting  other  remedies  available to
Array or Comdial at law or equity, upon the occurrence of an Event of Default by
ePHONE,  either Array or Comdial may, at their option,  terminate this Agreement
by giving written notice to ePHONE.

         Section  7.3  Discontinuation  of  Use.  Following  the  expiration  or
termination of this  Agreement,  for any reason other than ePHONE's  election of
its option to purchase the Intellectual Property pursuant to Section 2.3, ePHONE
shall  immediately  cease use of the Intellectual  Property  licensed under this
Agreement.

                                    ARTICLE 8
                                 CONFIDENTIALITY

         Section  8.1   ePHONE's   Confidentiality   Obligations.   The  parties
acknowledge  that,  during  the  ordinary  course of  business,  ePHONE  will be
required to disclose  confidential and proprietary  information to its customers
and other  parties.  During the term of this  Agreement and  thereafter,  ePHONE
agrees  that it will  enter into  confidentiality  agreements  or  nondisclosure
agreements with usual and customary terms and conditions prior to disclosing the
Know-How and all other  technology,  inventions,  software,  hardware,  designs,
drawings,  processes,  recipes,  formulae,  data, technical  information and the
like,  which are disclosed by Array or Comdial to ePHONE or received by ePHONE's
personnel under this Agreement.

         Section 8.2  Array's and  Comdial's  Confidentiality  Obligations.  The
parties  acknowledge  that,  during the ordinary  course of business,  Array and
Comdial will be required to disclose confidential and proprietary information to
its  customers  and  other  parties.  During  the  term  of this  Agreement  and
thereafter,  Array and Comdial agree that they,  jointly or  individually,  will
enter into confidentiality agreements or nondisclosure agreements with usual and
customary terms and conditions  prior to disclosing all technology,  inventions,
software,  hardware,  designs,  drawings,  processes,  recipes,  formulae, data,
technical  information  and the like,  which are disclosed by ePHONE to Array or
Comdial or received by Array or Comdial's personnel under this Agreement.

         Section   8.3   Exceptions   to   Confidentiality    Obligations.   The
confidentiality  obligations  set forth in this Article 8 shall not apply to any
information that: (i) is or becomes generally available to the public other than
as a  result  of  disclosure  by one  of the  parties  or the  parties'  agents,
employees,  representatives, or advisors; (ii) is rightfully disclosed to either
of the  parties  by a third  party  without  any  breach of the  confidentiality
obligations  hereunder.  Any of the  parties  may  disclose  the other  parties'
confidential   information  to  its  personnel  and   independent   contractors,
including, without limitation,  lawyers,  accountants, and consultants, when the
course of their employment necessitates such disclosure; provided, however, that
the  disclosing   party  shall  take   appropriate   measures  to  maintain  the
confidentiality of all confidential information disclosed to or obtained by such
party's personnel or independent contractors.

         Section 8.4 Return of Confidential Information.  Upon the expiration or
termination of this  Agreement,  for any reason other than ePHONE's  election of
its option to purchase the Intellectual  Property  pursuant to Section 2.3, each
party hereto shall return to the other parties, as applicable,  all materials or
items that contain,  embody, or relate to any confidential information belonging
to the  other  parties,  including,  without  limitation,  documents,  drawings,
software, hardware, databases,  electronic information,  storage media, samples,
and models.  Each party shall  return all such  materials  to the other  parties
within fifteen (15) days of the date of expiration or termination.

                                    ARTICLE 9
                              TECHNICAL ASSISTANCE

         Section  9.1   Technical   Assistance   Services.   ePHONE   shall  use
commercially  reasonable  efforts to make its employees and agents  available to
Array  and  Comdial  to  provide  technical  assistance  with  the  Intellectual
Property,  any  improvements,  developments,  enhancements,   modifications,  or
inventions  related thereto,  or any other technical matters related to ePHONE's
business.  ePHONE shall  charge  Array and Comdial  rates at least as low as the
lowest  rates  charged to third  parties  not  affiliated  with  ePHONE for such
technical assistance services.

                                   ARTICLE 10
                               GENERAL PROVISIONS

         Section 11.1 No Third Party  Beneficiaries.  This  Agreement  shall not
confer any rights or remedies  upon any person or entity  other than the parties
and their respective successors and permitted assigns.

         Section 11.2 Succession and Assignment. This Agreement shall be binding
upon and  inure to the  benefit  of the  parties  hereto  and  their  respective
successors and permitted  assigns.  Any of the parties hereto shall be permitted
to assign this Agreement and its rights and obligations hereunder to a successor
in  interest of all or  substantially  all of its  assets,  or to an  affiliated
entity.

         Section  11.3  Amendments.  No  amendment  of  any  provision  of  this
Agreement  shall be valid unless the amendment shall be in writing and signed by
all parties hereto.

         Section  11.4  Waivers.   No  waiver  by  any  party  of  any  default,
misrepresentation,  or breach of warranty or covenant  hereunder,  regardless of
whether  intentional,  shall be deemed  to  extend  to any  prior or  subsequent
default,  misrepresentation,  or breach of  warranty or  covenant  hereunder  or
affect in any way any rights  arising by virtue of any prior or subsequent  such
occurrence.

         Section 11.5 Severability. Any term or condition of this Agreement that
is invalid or  unenforceable  in any  situation  in any  jurisdiction  shall not
affect the validity or  enforceability  of the  remaining  terms and  provisions
hereof or the validity or  enforceability  of the offending term or provision in
any other situation or in any other jurisdiction.

         Section 11.6  Construction.  The parties have participated  mutually in
the  negotiation  and drafting of this  Agreement.  In the event an ambiguity or
question of intent or interpretation  arises,  this Agreement shall be construed
as if drafted  mutually  by the parties  and no  presumption  or burden of proof
shall arise favoring or disfavoring any party by virtue of the authorship of any
of the provisions of this Agreement.

         Section 11.7 Notices. All notices, requests, demands, claims, and other
communications  hereunder  shall be in  writing.  Any notice,  request,  demand,
claim,  or other  communication  hereunder  shall be deemed  duly given (i) upon
confirmation  of receipt of facsimile or electronic  mail; (ii) one (1) business
day following the date sent when sent by overnight  delivery;  or (iii) five (5)
business  days  following the date mailed when mailed by registered or certified
mail return receipt requested and postage prepaid to the following address:

         If to Array or Comdial:

                  Comdial Corporation
                  1180 Seminole Trail
                  Charlottesville, Virginia 22906
                  Attention: William G. Mustain
                  Tel:     (804) 978-2518
                  Fax:     (804) 978-2512
                  E-mail: bill.mustain@comdial.com

         Copy to:

                  McGuire, Woods, Battle & Boothe LLP
                  310 4th Street NE, Suite 300
                  P. O. Box 1288
                  Charlottesville, Virginia 22902-1288
                  Attention: Robert E. Stroud, Esquire
                  Tel:     (804) 977-2511
                  Fax:     (804) 980-2272
                  E-mail: restroud@mwbb.com

         If to ePHONE:

                  ePHONE Telecom, Inc.
                  355 Burrard Street, Suite 1000
                  Vancouver, British Columbia, Canada V6C 2G8
                  Attention: Robert G. Clarke
                  Tel:     (604) 482-6116
                  Fax:     (604) 482-1116
                  E-mail: rclarke@ephonetel.com

         Copy to:

                  Arnold & Porter
                  555 Twelfth Street NW
                  Washington, D.C. 20004-1202
                  Attention: Paul D. Freshour, Esquire
                  Tel:     (202) 942-5872
                  Fax:     (202) 942-5999
                  E-mail: paul freshour@aporter.com

         Section 11.8  Counterparts.  This  Agreement  may be executed in one or
more  counterparts,  each of which shall be deemed an original  but all of which
together shall constitute one and the same instrument.

         Section 11.9 Headings.  The Article and Section  headings  contained in
this Agreement are inserted for convenience only and shall not affect in any way
the meaning or interpretation of this Agreement.

         Section 11.10 Entire Agreement. The Strategic Alliance Agreement,  this
Agreement, and the other Agreements referred to and incorporated by reference in
the Strategic  Alliance  Agreement shall constitute the entire agreement between
the parties  and  supersede  any prior  understandings,  agreements,  covenants,
warranties, or representations by or between the parties, written or oral.

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<PAGE>

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement on
the date first set forth above.

                                   ARRAY TELECOM, INC.

                                   By:  /s/ William G. Mustain
                                         -------------------------------------
                                   Name:    William G. Mustain
                                         -------------------------------------
                                   Title:   Chairman
                                         -------------------------------------

                                   ePHONE TELECOM, INC.

                                   By:  /s/ JG
                                         -------------------------------------
                                   Name:    John G. Fraser
                                         -------------------------------------
                                   Title:   Director, Executive Vice President
                                         -------------------------------------

                                   COMDIAL CORPORATION

                                   By:  /s/ William G. Mustain
                                         -------------------------------------
                                   Name:    William G. Mustain
                                         -------------------------------------
                                   Title:   President/CEO
                                         -------------------------------------

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