Document:

FULL AND COMPLETE RELEASE

EXHIBIT 10.11

EMPLOYMENT AND SUCCESSION AGREEMENT

AND

FULL AND COMPLETE RELEASE

This Employment and Succession Agreement and Full and Complete Release ("Agreement") is entered into between Richard Macchia ("Executive") and Internet Security Systems, Inc., a Delaware corporation (together with its subsidiary companies, the "Company").

Whereas, the Company and Executive desire to agree upon a fixed term of employment of Executive by the Company and provide for the successful transition of duties and separation of Executive from the Company effective July 3, 2006, or such earlier date as Executive and the Company's Chief Executive Officer may agree; and 

Whereas, the Company and Executive have previously entered into an Indemnity Agreement dated 17 April 1998, a Retention Agreement dated 14 July 2003, and a Confidentiality, Ownership and Non-Competition Agreement dated 29 December 1997 (the "Preexisting Agreements"). 

Whereas, the Executive has consulted with an attorney and has relied upon the advice of his attorney in signing this Agreement. 

Now, therefore, in consideration for payments and benefits provided by the Company as set forth in this Agreement, the sufficiency of which is hereby acknowledged, Executive and the Company agree as follows: 
1.Fixed Term Employment. 

	In order to assure retention of Executive through December 31, 2005, the Company will continue Executive's full-time employment through December 31, 2005. When a new Chief Financial Officer begins employment with the Company, which is expected to be a date prior to December 31, 2005, the title and responsibilities of Chief Financial Officer will transition from Executive to the new Chief Financial Officer. Part-time employment of Executive will begin on January 1, 2006 and continue through July 3, 2006. Executive and the Company will execute releases in substantially the same form as contained in this Agreement upon conclusion of full-time status (including a release of the Retention Agreement), and again upon conclusion of part-time employment (including a release of obligations under this Agreement, but not the Indemnity Agreement or the Confidentiality, Ownership and Non-Competition Agreement).
	During full-time employment, Executive's compensation will continue on current compensation terms, including salary and incentive compensation, benefits and expense reimbursement according to policy. For the avoidance of doubt, Executive will be eligible for his full 2005 annual and quarterly bonuses as indicated in his current compensation plan for 2005, subject to attainment of applicable performance targets.
	Executive will devote full-time and best efforts to the business of the Company during the period of full-time employment, including continuing current responsibilities. This also includes preparation and signing of quarterly and annual reports and certifications that are required during the period of full-time employment as Chief Financial Officer.
	During part-time employment, Executive's compensation will continue at the rate of $18,150 per month. Medical benefits will also continue during this period.  Other employee benefits will apply only as provided in the Company's benefits plans for part-time employees. The Company will reimburse reasonable out-of-pocket expenses incurred according to the Company's policy during part-time employment. After July 3, 2006, Executive will not be entitled to any further compensation or benefits or severance payments.
	During part-time employment until March 16, 2006, Executive will be available for an aggregate of 210 hours, as needed, using best efforts to fulfill reasonably requested tasks. After March 16, 2006 through July 3, 2006 no minimum number of hours is intended and availability will be as agreed between the parties.
	Equity incentives, such as stock options and restricted stock, will continue to vest according to the Company's incentive stock plan during full-time and part-time employment, except as provided in Section 1(i). 
	During full-time and part-time employment, Executive may be terminated by the Company only for cause. "Cause" means the commission of any act of fraud, embezzlement or dishonesty, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Company or any affiliated company, or any other intentional violation of the Company's Code of Conduct by Executive adversely affecting the business or affairs of the Company or any parent or subsidiary corporation in a material manner.
	Executive will report to the Chief Executive Officer during full-time and part-time employment. Executive will perform such responsibilities and duties as may be assigned consistent with his current areas of responsibility, in the Chief Executive Officer's judgment, so that the succession of the new Chief Financial Officer is efficient, effective and successful. Employment with others will not be entered into during full-time employment. If Executive elects to leave the Company voluntarily after December 31, 2005 and begins a full-time senior officer position at another company prior to March 16, 2006, then part-time employment will terminate, compensation and benefits will cease, and equity incentives such as stock options and restricted stock will cease vesting. After March 16, 2006, other employment opportunities may be entered into and Executive acknowledges that the Confidentiality, Ownership and Non-Competition Agreement will continue to apply. This Agreement is for the personal services of Executive. Executive shall receive all payments and other benefits to which Executive is entitled under this Agreement through July 3, 2006, unless Executive's employment terminates prior to July 3, 2006 for Cause, due to death or disability, or as otherwise provided in this Agreement, in which event compensation and benefits will cease upon employment termination.
	Provided Executive's part-time employment status continues to July 3, 2006 and for Executive's covenant not to compete with the Company, as provided in this paragraph, the Company agrees that the remaining 12,500 shares of restricted stock granted to Executive on January 27, 2004 will fully vest on July 3, 2006 instead of January 27, 2007. Executive covenants and agrees that from the date of this Agreement until March 16, 2007, Executive will not (whether on his own behalf or on behalf of any person or entity other than the Company) engage in or become involved in a business that directly competes with the Company in any line of business in which it is engaged as of the date of this Agreement. A list of currently competing entities has been furnished by the Company to Executive contemporaneously with the execution and delivery of this Agreement. The parties acknowledge that other businesses may have incidental activities that may compete with a business line of the Company and this covenant is not intended to prohibit employment with a business (not identified on the list) who's primary business is not competitive with the business of the Company, provided that Executive is not actively involved or directly responsible for the incidental activity that competes. This covenant does not prohibit investment (whether directly or through public or private investment funds) in securities of any entity that may compete with the Company, provided such investment does not exceed 5% of the equity securities of such entity and provided Executive is not involved in the management or operations of such competing entity. Executive acknowledges that the Company's business is global and that he has been involved with its business globally, so this restriction will apply throughout the world. Executive acknowledges that these restrictions are reasonably necessary to protect the Company's legitimate business interests, are not overbroad, overlong, or unfair (including in duration and scope), and are not the result of overreaching, duress, or coercion of any kind.  Executive confirms that his observance of the covenants will not cause him any undue financial hardship, and that the enforcement of the covenants will not impair his ability to gain employment commensurate with his abilities and on terms fully acceptable to him or otherwise to receive sufficient income to support him and his family and to satisfy his debt obligations.  Executive acknowledges that any violation of these covenants would cause the Company irreparable injury or loss.  Executive agrees that, for any breach or threatened breach of the covenants of this provision, the Company will be entitled to immediate injunctive relief and that a restraining order and/or an injunction may issue against Executive to prevent or restrain any such breach or threatened breach, in addition to any other rights or remedies at law that the Company may have.

2.Full and Complete Release. 

Executive, for himself and his heirs, executors, administrators and assigns, does hereby knowingly and voluntarily release and forever discharge the Company and its affiliates, joint ventures, joint venture partners, and benefit plans, and their respective current and former directors, officers, administrators, trustees, employees, agents, and other representatives, from all debts, claims, actions, causes of action (including without limitation those arising under the Fair Labor Standards Act of 1938, as amended, 29 U.S.C. Sec. 201 et seq.; the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. Sec. 1001 et seq.; the Worker Adjustment and Retraining Notification Act of 1988, 29 U.S.C. Sec. 2101 et seq.; and those federal, state, local, and foreign laws prohibiting employment discrimination based on age, sex, race, color, national origin, religion, disability, veteran or marital status, sexual orientation, or any other protected trait or characteristic, or retaliation for engaging in any protected activity, including without limitation the Age Discrimination in Employment Act of 1967, 29 U.S.C. Sec. 621 et seq., as amended by the Older Workers Benefit Protection Act, P.L. 101-433; the Equal Pay Act of 1963, 9 U.S.C. Sec. 206, et seq.; Title VII of The Civil Rights Act of 1964, as amended, 42 U.S.C. Sec. 2000e et seq.; the Civil Rights Act of 1866, 42 U.S.C. Sec. 1981; the Civil Rights Act of 1991, 42 U.S.C. Sec. 1981a; the Americans with Disabilities Act, 42 U.S.C. Sec. 12101 et seq.; the Rehabilitation Act of 1973, 29 U.S.C. Sec. 791 et seq.; the Family and Medical Leave Act of 1993, 28 U.S.C. Sections 2601 and 2611 et seq.; and comparable state, local, and foreign causes of action, whether statutory or common law), suits, dues, sums of money, accounts, reckonings, covenants, contracts, claims for costs or attorneys' fees, controversies, agreements, promises, and all liabilities of any kind or nature whatsoever, at law, in equity, or otherwise, KNOWN OR UNKNOWN, fixed or contingent, which he ever had, now has, or may have, or which he, his heirs, executors, administrators or assigns hereafter can, shall, or may have, from the beginning of time through the date on which he signs this Agreement, including without limitation those arising out of or related to his employment or separation from employment with the Company (collectively the "Released Claims"), provided nothing herein releases the Company from its obligations under this Agreement or the Preexisting Agreements, or releases any vested and accrued benefits to which Executive is entitled, or any rights which by law cannot be released. 

Executive fully understands and agrees that: 

	no rights or claims are released or waived that may arise after the date Executive signs this Agreement; 
	Executive is advised to consult with an attorney before signing this Agreement; 
	Executive has 21 days from receipt of this Agreement within which to consider whether to sign it; 
	Executive has seven days following his execution of this Agreement to revoke the Agreement; and 
	this Agreement shall be effective on the date executed by Executive, but Executive shall not have the right to enforce this Agreement until the revocation period of seven days has expired without any such revocation. 

Executive acknowledges that some of the payments and benefits given to Executive under this Agreement are in addition to those to which he is otherwise entitled to as a matter of Company policy. 
3.Release of Claims Against Executive. 

The Company, for itself and its successors and assigns, does hereby knowingly and voluntarily release and forever discharge the Executive and his personal and legal representatives, executors, administrators, heirs, distributees, devisees, legatees and successors from all debts, claims, actions, causes of action, suits, dues, sums of money, accounts, reckonings, covenants, contracts, claims for costs or attorneys' fees, controversies, agreements, promises, and all liabilities of any kind or nature whatsoever, at law, in equity, or otherwise, KNOWN OR UNKNOWN, fixed or contingent, which it ever had, now has, or may have, or which it, its successors or assigns hereafter can, shall, or may have, from the beginning of time through the date on which it signs this Agreement, including without limitation those arising out of or related to Executive's employment or separation from employment with the Company, provided nothing herein precludes the Company from enforcing its rights under this Agreement or the Preexisting Agreements, or its rights related to taxes, advances or reimbursement of expenses arising in the course of Executive's employment relationship with the Company. 
4.Future Cooperation. 

Executive covenants and agrees that he shall reasonably cooperate with the Company, so long as such cooperation does not unreasonably interfere with Executive's then current employment or business activities, in any pending or future matters, including without limitation any litigation, investigation, or other dispute, in which he, by virtue of his employment with the Company, has relevant knowledge or information, including, but not limited to (i) meeting with representatives of the Company to provide truthful information regarding his knowledge, (ii) acting as the Company's representative, and (iii) providing, in any jurisdiction in which the Company requests, truthful testimony relevant to said matter. The Company shall reimburse Executive for all of Executive's reasonable out-of-pocket expenses associated with such assistance, including travel expenses and attorneys' fees. If such cooperation occurs after July 3, 2006 and results in devotion of Executive's time exceeding three business days, the Company will compensate Executive for his time at an hourly rate based upon his current base salary.
5.Indemnification. 

Nothing in this Agreement shall affect any rights Executive may have to indemnification or advancement of expenses under Article XI of the Company's by-laws in effect as of the date of this Agreement, any written agreement between the Company and Executive, including the Indemnity Agreement, or under applicable law. 
6.Nondisparagement. 

Executive will not disparage the Company, its customers or suppliers or the Company's directors, officers, or employees ("Representatives"). The Company and its Representatives will not disparage Executive. "Disparagement" means a negative oral or written statement that can be accurately demonstrated in fact to be attributable to (i) Executive or (ii) the Company or its Representatives (as applicable). Notwithstanding the foregoing, (i) no statement made by either party in the context of any legal or regulatory proceeding shall be deemed to violate the foregoing provisions, and (ii) subject to (i), all communication relating to the termination of Executive's employment with the Company shall be consistent with the Company's Current Report on Form 8-K filed with respect to this matter. 
7.Complete Agreement. 

This Agreement is the complete understanding between Executive and the Company in respect of the subject matter of this Agreement and, with the exception of the Preexisting Agreements, supersedes all prior agreements relating to the same subject matter. In signing this Agreement, Executive has not relied upon any representations, promises or agreements of any kind except those set forth herein. 
8.Severability. 

In the event that any provision of this Agreement should be held to be invalid or unenforceable, each and all of the other provisions of this Agreement shall remain in full force and effect. If any provision of this Agreement is found to be invalid or unenforceable, such provision shall be modified as necessary to permit this Agreement to be upheld and enforced to the maximum extent permitted by law. 
9.Governing Law. 

This Agreement is to be governed and enforced under the laws of the State of Georgia (without regard to Georgia's conflicts of law rules that might call for the application of the law of another jurisdiction). 
10.Successors and Assigns. 

This Agreement is binding upon and inures to the benefit of the Company and its successors and assigns. 
11.Amendment/Waiver. 

No amendment, modification or discharge of this Agreement shall be valid or binding unless set forth in writing and duly executed by each of the parties hereto. 
12.Acknowledgment. 

Executive has carefully read this Agreement, fully understands each of its terms and conditions, and intends to abide by this Agreement in every respect. As such, Executive knowingly and voluntarily signs this Agreement. 

	

 
	

 
	

 
	

 
	

Executive

	

 
	

 
	

 
	

 
	

   

    /s/ Richard Macchia

Richard Macchia

	

Date:
	

 
	

May 11, 2005
	

 
	 
	

 
	

 
	

 
	

 
	

Internet Security Systems, Inc.

	 	

 
	 	

 
	

       /s/ Thomas E. Noonan

Thomas E. Noonan

President, Chief Executive Officer and Chairman

	

Date:
	

 
	

May 11, 2005<PAGE>

                    TV PRODUCTION AND DISTRIBUTION AGREEMENT

This Agreement (including the Exhibit(s) hereto) is made between:-

SWEDISH MATCH GRAND PRIX AB ("SMGP")
Rosenlundsgatan 36, SE-118 85 Stockholm, Sweden

and

NARROWSTEP LTD ("NSP")
60 Parsons Green Lane, London SW6 4HU, United Kingdom

(hereinafter collectively referred to as the "Parties")
(The Swedish Match Tour is referred to as the "Tour")

and sets out the terms and conditions under which NSP is contracted by SMGP for
TV production and distribution of ten (10) event programmes from event regattas
on the Tour in the 2004/5 and 2005/6 seasons.

In this Agreement the following words and expressions shall have the following
meanings:

"Content" means electronically recorded audio and visual material such as may be
protected by relevant intellectual property legislation;

"Fees" means all fees payable by SMGP to NSP for the Professional Services;

"Initial Term" means the minimum term for which NSP will provide the Services;

"Professional Services" means any professional, consulting or support services
provided by NSP to SMGP under this Agreement;

"Renewal Term" means any term following the Initial Term;

"Services" means the Professional Services and the Supplemental Services;

"Supplemental Expenses" means all supplemental expenses incurred by NSP in
relation to the expenses for subsistence, flights and accommodation for the
agreed NSP team at each event;

"Supplemental Fees" means all fees payable by SMGP to NSP in respect of
Supplemental Services and such fees shall be in accordance with NSP's then
current prices and pricing policy;

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"Supplemental Services" means any agreed certain services and equipment needed
by SMGP on a "one-off" or emergency basis where such services are not included
within the scope of the Professional Services;and

"The Player" means the Narrowstep Inc TV player on the Internet incorporating,
ChannelServer, AdServer and MediaServer elements which are commonly known as
`The Player' in Narrowstep's business model.

1.       TERMS FOR PARTIES
1.1      Whereby it is agreed that NSP and SMGP shall accept the terms in full
         within this Agreement for television coverage of the Tour TV series.

2.       COMMISSIONING AGREEMENT
2.1      NSP is commissioned by SMGP to film sailing events on the Tour, to
         produce programs and to distribute such programs, in accordance what is
         further described in EXHIBIT 1.

2.2      NSP shall provide SMGP with 14 x PAL format DVD and 3 x NTSC format DVD
         after each production is completed.

3.       REMUNERATION
3.1      The agreed remuneration for the Professional Services is USD 325,000
         (three hundred and twenty five thousand USD).

3.2      If SMGP cancels one or more of the events on the Tour, the renumeration
         set out above shall be reduced by USD 30,000 (thirty thousand USD) for
         each cancelled event unless the Parties agree to an arrangement for NSP
         to provide a replacement programme.

3.3      If SMGP adds one or more events to the Tour, SMGP shall pay an
         additional fee of USD 30,000 per added event and year, and the
         Professional Services shall comprise such event. SMGP will consult NSP
         prior to the addition or deletion of any event.

3.4      In the event of deletion or addition of one or more events on the Tour,
         the renumeration set out above shall be adjusted in accordance with
         section 3.2 and/or section 3.3 above. Such adjustments, if any, shall
         be settled between the Parties by the 31st of December each year during
         the term of this Agreement.

4.       TERM
4.1      The Term of this Agreement will be from the 1st of February 2005 and
         shall continue until the 31st of December 2005.

4.2      This Agreement will be automatically extended for one (1) year at a
         time, unless terminated in writing on or prior to the 1st of December
         of each year

4.3      The termination of this Agreement shall not affect the validity of the
         clauses 7 (save for 7.4 and 7.5), 8, 15, 16 and 17.

5.       PAYMENT TERMS
5.1      Payment shall be made via electronic funds transfer with all charges
         paid by sender in ten (10) equal instalments (the number of instalments
         may change, should

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         events be added or cancelled as set out in sections 3.2 and 3.3) of USD
         30,000 (thirty thousand USD) on the 30th day of each month beginning
         February, and one final instalment of USD 25,000 (twenty-five thousand
         USD) on 1 December.

5.2      NSP shall issue to SMGP a monthly invoice.

5.3      SMGP shall provide all flights, accommodation and subsistence expenses
         for the agreed NSP team at each event. Flight costs shall not exceed
         USD 30,000. Any Supplemental Expenses relating to this incurred by NSP
         shall be reimbursed by SMGP providing these are agreed in writing by
         the Tour President or the Tour Director of SMGP in advance, or if
         agreed on site at an event, by a follow-up e-mail confirming the
         agreement.5.3

5.4      Travel, accommodation and subsistence costs relating to any additional
         events added to the Tour as in clause 3.3 of this agreement shall be
         provided or reimbursed to NSP.

5.5      SMGP shall reimburse any Supplemental Fees for any Supplemental
         Services performed by NSP, providing these are agreed in writing by the
         Tour President or the Tour Director of SMGP in advance, or if agreed on
         site at an event, by a follow-up e-mail confirming the agreement.

5.6      Payment of all invoices issued by NSP to SMGP shall become due fourteen
         (14) days after receipt of the same by SMGP.

5.7      Where applicable NSP will charge to SMGP such taxes as may be
         applicable at the prevailing rate and all other relevant purchase tax
         on the Fees, Supplemental expenses and Supplemental Fees. Should NSP
         become aware of any such tax, NSP shall without delay notify in writing
         SMGP thereof. Should NSP not give a written notice without delay to
         SMGP, NSP will be responsible for any such taxes that could have been
         avoided had SMGP received such a notice.

6.       LATE PAYMENTS
6.1      Late payments shall be subject to the prevailing rate of interest
         according to Swedish law which shall accrue on a daily basis and is due
         and payable by SMGP. However, any delay as regards the payment that
         falls due on the 30th of February 2005 shall not be subject to interest
         if the delay depends on the execution of this Agreement taking place
         after that date.

7.       RIGHTS
7.1      SMGP shall be the sole and exclusive owner of all results of work
         performed by NSP under this Agreement. Without limitation, films,
         programming, news rushes, Content, as well as other productions and
         recordings of the same, shall be considered as results of work
         performed by NSP under this Agreement. SMGP's ownership of such results
         shall include all intellectual property rights and SMGP shall be
         entitled to make changes in such results and to transfer its rights to
         any third party.

7.2      At SMGP's request, NSP shall without delay provide SMGP with results of
         work performed by NSP under this Agreement. Any untoward costs incurred
         by NSP will be reimbursed by SMGP providing these are agreed in writing
         by the Tour President or the Tour Director of SMGP in advance.

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7.3      SMGP agrees that NSP is allowed to use all materials covered within
         this agreement for internet broadcasting.

7.4      SMGP agrees that NSP is allowed to use all materials covered within
         this agreement for their own advertising and promotion in perpetuity,
         providing the express written agreement of SMGP is obtained beforehand.

7.5      SMGP agrees that NSP is allowed to use all materials covered within
         this agreement once this agreement terminates, provided the express
         written agreement of SMGP is obtained beforehand.

7.6      The Narrowstep Player is recognised as being proprietary Narrowstep
         software and as such Narrowstep is the sole owner of this technology
         and software, which is under license to SMGP and is operated by
         Narrowstep only for the duration of this agreement, and SMGP recognises
         it has no claims or rights in this respect.

8.       LIMITATION OF LIABILITY
8.1      In no circumstances shall the Parties be liable in contract, tort
         (including negligence or breach of statutory duty) or otherwise
         howsoever caused for:

         (i)    any loss of profit business contracts revenues or anticipated
                savings or;
        (ii)    any special indirect or consequential damage of any nature
                whatsoever arising directly or indirectly out of the provision
                by NSP of the Services or of any error or defect therein or of
                the performance, non-performance, or delayed performance by NSP
                of this Agreement.

8.2      In the event of a technical failure of equipment or of a material
         failure with video tapes, NSP shall endeavour to rectify the failure on
         site or provide replacement equipment and video tapes at the site but
         will not be held responsible for any loss or damages caused to any
         other Parties through such failures.

9.       WARRANTY
9.1      In relation to the filming and the production of the Tour and NSP's
         fulfilment of its obligations under this Agreement and provided that
         NSP has followed any directions given by SMGP, SMGP agrees to indemnify
         and hold harmless NSP and its officers, directors, professional
         advisers, agents and employees against any losses costs expenses claims
         damages liabilities penalties actions proceedings or judgments which
         they may become subject to relating to or arising from the infringement
         or misappropriation or alleged infringement or misappropriation of any
         copyright, trade secret, patent, trademark or other proprietary right
         related to any hardware or software utilised by SMGP or otherwise
         through the performance of the Services.

10.      LICENCES
10.1     SMGP licenses NSP to distribute the Tour TV series in accordance with
         this Agreement.

11.      ASSIGNMENT
11.1     In the event SMGP in SMGP's opinion should become prevented to run the
         Tour due to regulatory reasons, SMGP shall have the right to transfer
         or assign its right and obligations under this Agreement.

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<PAGE>

12.      TERMINATION
12.1     Either one of the Parties may by notice in writing immediately
         terminate this Agreement if the other party shall:

         a)       breach this Agreement and in the case of a breach capable of
                  being remedied shall not have remedied the same within seven
                  (7) days of receipt of a notice identifying such breach and
                  requiring its remedy;

         b)       be unable to pay its debts or enters into compulsory or
                  voluntary liquidation or compounds with or convenes a meeting
                  of its creditors or has a receiver or manager or an
                  administrator appointed, or ceases for any reason to carry on
                  business or takes or suffers any similar action whereby it may
                  be unable to pay its debts.

12.2     Termination of this Agreement for whatever reason shall be without
         prejudice to any rights or obligations which have accrued prior to
         termination.

13.      FORCE MAJEURE
13.1     Should a party's fulfilment of its obligations under this Agreement be
         prevented, impeded or delayed for any reason beyond the party's
         reasonable control ("Force Majeure Event") including, but not limited
         to, labour disputes, state administrative actions of any kind, fire,
         flooding, shortage of power and shortage in means of transport, the
         party shall be considered relieved to perform any obligation affected
         by the Force Majeure Event for a reasonable period with regard to all
         relevant circumstances.

13.2     The party desiring to invoke a Force Majeure Event shall give notice to
         the other party as soon as possible. The failure of such notice shall
         mean that the party is not discharged from liability for any
         non-performance caused by such Force Majeure Event.

13.3     The Parties shall make all reasonable efforts to prevent an reduce the
         effects of any non-performance of this Agreement caused by a Force
         Majeure Event.

13.4     Should the Force Majeure Event impede a party to perform duly under
         this Agreement for more than six (6) months, the other party shall have
         the right to terminate this Agreement in writing with immediate effect
         with no further remedies for the damages caused by the failure to
         perform due to the Force Majeure Event.

14.      RELATIONSHIP OF PARTIES
14.1     None of the provisions of this Agreement shall be deemed to constitute
         a partnership between the Parties and neither party shall be
         responsible for any act or omission of the other or have the right or
         authority to bind the other in any way.

15.      CONFIDENTIALITY
15.1     The Parties shall maintain in confidence, and not disclose to any third
         party, all Proprietary Information disclosed to it by the other party.
         What is now said shall not apply to any information:

         (i)      which at the time of disclosure was in the public domain or
                  after the disclosure becomes part of the public domain by
                  publication or otherwise, except by breach of the undertakings
                  hereunder by either party; or

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         (ii)     which was known or used by the party to which it is disclosed,
                  prior to the date of disclosure to it by the other; or

         (iii)    which is required to be disclosed by court or government
                  order; or

         (iv)     which either before or after the date of disclosure to a
                  party, is lawfully disclosed to such a party by an independent
                  third party rightfully in possession of the information; or

         (v)      which is disclosed to an Agent that has been informed of and
                  agreed to the terms of this confidentiality undertaking.

15.2     For purposes of this Agreement, "Proprietary Information" shall include
         any information owned or lawfully controlled by the party disclosing
         the information (the "Disclosing Party") that is not generally known to
         the public including, without limitation, the terms of this Agreement,
         trade secrets, know-how, customer lists, business plans, financial
         information, research, product plans, services, customers, markets,
         inventions, processes, designs, drawings, including such
         material/information identified by the Disclosing Party as being
         proprietary and/or confidential (either verbally or in writing) prior
         to disclosure.

15.3     The Parties also undertake not to use any such Proprietary Information
         of the other party that they are obliged to hold in confidence
         hereunder for any other purpose than the purpose of this Agreement,
         without the prior written consent of the party owning such Proprietary
         Information. The Parties further undertake to make the obligations set
         forth in this section 14 binding upon their employees, sub-contractors
         and partners.

15.4     The obligations set forth in this section 15 shall survive the
         termination of this Agreement.

16.      GOVERNING LAW
16.1     This Agreement shall be governed by and construed in accordance with
         the substantive laws of Sweden.

16.2     Each of the Parties to this Agreement irrevocably submits for all
         purposes in connection with this Agreement to the exclusive
         jurisdiction of the Courts of Sweden, whereby the Stockholm District
         Court shall be the exclusive court of first instance.

17.      DISPUTE RESOLUTION
17.1     The Parties will attempt in good faith to resolve any dispute or claim
         arising out of or relating to this Agreement promptly through
         negotiations between their representatives.

17.2     If the matter is not resolved through negotiation the Parties will
         attempt in good faith to resolve the dispute or claim through an
         Alternative Dispute Resolution ("ADR") procedure.

17.3     The performance of obligations under the Agreement shall not cease or
         be delayed by the application of an ADR procedure pursuant to clause
         17.2 above.

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<PAGE>

17.4     If the matter has not been resolved by an ADR procedure within two (2)
         months of the initiation of such procedure or if either Party will not
         participate in an ADR procedure the dispute shall be referred to an
         arbitrational tribunal in accordance with clause 17.5 below.

17.5     All disputes, controversies or claims between the Parties arising out
         of or in connection with this Agreement or the breach, termination or
         invalidity thereof shall be exclusively settled by arbitration in
         accordance with the Rules of the Arbitration Institute of the Stockholm
         Chamber of Commerce. The arbitral tribunal shall be composed of three
         (3) arbitrators and the place of arbitration shall be Stockholm,
         Sweden. The arbitral proceedings shall be conducted in the English
         language.

18.      ENTIRE AGREEMENT
18.1     This Agreement shall constitute the entire agreement and understanding
         between the Parties in respect of the subject matter of this Agreement
         and supersedes any prior or contemporaneous agreement whether written
         or oral. Any changes modifications or amendments to this Agreement to
         be binding must be signed by an authorised officer of both Parties.
         This Agreement does not supersede or terminate any non-disclosure or
         confidentiality agreement in existence between the Parties.

18.2     If any of the provisions of this Agreement are found to be void or
         unenforceable it shall be deemed to be deleted from this Agreement and
         the remaining provisions shall continue to apply. The Parties shall
         negotiate in good faith in order to agree the terms of a mutually
         satisfactory provision to be substituted for the provision found to be
         void or unenforceable.

19.      SERVICE OF NOTICES AND COMMUNICATIONS
19.1     Except as otherwise expressly provided within the Agreement, no notice
         or other communication from one party to the other shall have any
         validity under the Agreement unless made in writing by or on behalf of
         the party concerned.

19.2     Any notice or other communication which is to be given by either party
         to the other shall be given by letter or by facsimile transmission or
         electronic mail confirmed by letter. Such letter shall be delivered by
         hand or sent pre-paid by first class registered or recorded delivery
         post addressed to the other party. If the other party does not
         acknowledge receipt of such letter facsimile transmission or item of
         electronic mail and the relevant letter is not returned as undelivered
         the notice or communication shall be deemed to have been given five (5)
         working days after the day on which the letter was posted.

20.      WAIVER
20.1     The failure of either party to exercise any right or remedy shall not
         constitute a waiver of that right or remedy.

20.2     No waiver shall be effective unless it is communicated to the other
         party in writing.

                                       7
<PAGE>

20.3     A waiver of any right or remedy arising from a breach of contract shall
         not constitute a waiver of any right or remedy arising from any other
         breach of the Agreement.

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

This Agreement has been executed in two (2) originals whereof the Parties have
taken one each.

Signed for and on behalf of             Signed for and on behalf of
Narrowstep Ltd                          Swedish Match Grand Prix AB

/s/ Clifford Webb                       /s/ Pierre Tinnerholm

Clifford Webb                           Pierre Tinnerholm
Chief Operating Officer                 President, Swedish Match Grand Prix AB

Dated 3/5/05                            Dated May 2, 2005

                                       8
<PAGE>

EXHIBIT 1 to TV Production and Distribution Agreement

Services to be provided by NSP:

1.   TV COVERAGE PLATFORM:

     a)   TV Coverage and attendance at nine (9) SMT events, on similar lines to
          2004;
     b)   Production of ten (10) programmes - nine (9) events and one (1)
          highlight programme;
     c)   TV distribution management;
     d)   The Tour TV Player;
     e)   Satellite news production and liaison from each event and End of event
          News production at events;
     f)   14 x PAL format DVD and 3 x NTSC format DVD of each event;

2.   ANALYSIS:

     a)   TV Coverage and attendance at nine (9) SMT events, on similar lines to
          2004;
          o    A crew of four to five (4-5) people for each event.
               Director/Cameraman, four (4) other camera operators.
          o    All standard filming equipment is included;
          o    A small lap top Edit suite for our use only to produce end of
               event VNR.

     b)   Production of ten (10) programmes; o Produce half-hour shows for
          broadcasters as 2004.
          o    All special versions for OLN, Japan etc are included;
          o    NSP will include the NTSC conversion costs, couriers etc to
               service all broadcasters requirements.
          o    NSP will produce a new graphic look and feel to the series.
          o    NSP anticipate coverage at nine (9) major events, and will again
               produce a Tour round up at the end of 2005 for the tenth show.
          o    Should there only be eight (8) events, NSP will produce a special
               show combining different elements from the tour

     c)   TV distribution management;
          o    NSP distribution manager and team will build and expand on the
               existing distribution;
          o    NSP will issue monthly distribution reports;

     d)   The Tour TV Player;
          o    NSP will continue with the Tour TV player, bringing in a new
               design and additional functions;
          o    NSP will encode and host each Tour programme produced following
               events;
          o    NSP will include all bandwidth and hosting costs as needed;

     e)   Satellite news coverage from each event;
          o    NSP shall organise and produce an end of event VNR from each
               event, where the facility is available;
          o    NSP teams will publicise this in advance with news agencies and
               broadcasters to create awareness of the uplink;
          o    NSP shall downlink the VNR to our offices in London and copy to
               tape for broadcaster/agencies preferring tape delivery.
          o    Costs of the satellite time and uplink etc are NOT included.

                                       9
<PAGE>

     f)   News production service as required at events;
          o    NSP can offer this as an extra fee at each event

     g)   14 x PAL format DVD and 3 x NTSC format DVD;

3.   LIVE BROADBAND TV COVERAGE.
NSP WILL ALSO PROVIDE SMGP THE OPPORTUNITY FOR LIVE BROADBAND COVERAGE AT THE
ADDITIONAL COST OF EUR 10,500 WHICH INCLUDES THE FOLLOWING:

               o    Extra cameraman
               o    Presenter
               o    2 x assistants
               o    Extra Live director
               o    Encoder/technician
               o    Cabling
               o    Monitors
               o    Globe-caster for mixing
               o    Audio desk
               o    Microwave links x 3
               o    Additional camera rental

               Additional costs are:
               o    2 x commentators (can source locally with sailors)
               o    Flights
               o    Accommodation
               o    Subsistence
               o    Excess baggage for all of above.

                                       10

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