Document:

EXHIBIT 10.14

                              EMPLOYMENT AGREEMENT

     This Employment Agreement (the "Agreement"), dated as of the March 1, 2000,
is entered into between MegaMedia Networks, Inc., (the "Company"), and Paul J.
Turcotte, (the "Executive").

                                     RECITAL

WHEREAS, the Company desires to employ the Executive and the Executive desires
to be employed by the Company upon the terms and subject to the conditions set
forth in this Agreement,

NOW THEREFORE, in consideration of the Recital and of the mutual promises set
forth in this Agreement, the company and the Executive agree as follows:

                                    AGREEMENT

1.   EMPLOYMENT. The Company employs the President of the Company. Executive and
     Company acknowledge that William A. Mobley is the current President of the
     Company and that he shall resign as President and the Executive shall be
     elected to President, effective no later than June 30, 2000. Reporting to
     the Company's CEO, the Executive is responsible for all aspects of product
     development, operations, marketing, sales, merchandising and customer
     service for MegaMedia Networks, Inc.

     The Executive's responsibilities as President of the Company include, but
     are not limited to the following:

     A.   Acquistion of Content and development necessary to meet the strategic
          and financial objectives of the Company, including; (i) Development
          and maintenance of revenue sharing partnerships for content; (ii)
          Acquisition of content syndication and/or distribution rights; (iii)
          Development of co-production partnerships to create programming
          content; (iv) Production of original sole-sourced content; (v)
          Development and in-house production of original programming including
          profitable operation of the MegaMedia studios; (vi) Development and
          production of event and remote broadcast/programming opportunities;
          (vii) Compliance assurance that all content appearing on the site
          meets standards specified by the CEO and Board of Directors from time
          to time.

     B.   Commerically viable site design and creative development of all
          aspects of the site, including; (i) Planning and development of site
          elements, editoral, commercial and merchandising strategies fro
          implementation upon CEO approval; (ii) Design of site look, feel,
          navigation, layout, structure and functionality; (iii) Graphic design
          of visual site elements; (iv) Development of site copy and approval of
          third-party copy presented on MegaMedia; (v) Management of all site
          presentation activities and coordination with technical execution
          staff; (vi) Design or approval of all advertising appearing on the
          site; (vii) Development and maintenance of the MegaMedia information
          pages including but not limited to business background, employment
          opportunities, investor relations, and public relations/publicity
          archives.

     C.   Marketing of services, capabilities and products to consumers and
          appropriate businesses, including; (i) Performance of consumer
          research to determine appropriate and effective marketing strategies
          and to evaluate consumer attitudes and acceptance of MegaMedia
          products; (ii) Performance of business-to-business oriented research
          to define and refine offerings to business partners, advertisers, and
          mechandisers to increase MegaMedia revenue potential; (iii)
          Development and fostering of effective consumer brand positioning and
          appeal; (iv) Development and fostering of effective
          business-to-business brand positioning and appeal; (v) Development and
          execution of effective advertising, promotion, publicity, and public
          relations strategies, tactics and

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     expenditures to increase audience exposure and revenues; (vi) Development
     of effective customer service policies, procedures, standards and delivery
     of performance against same.

     D.   Create and increase revenue opportunities through adverting, sales,
          and merchandising to consumers and business, including: (i) Develop,
          implement and manage effective advertising sales strategies and
          programs to increase enterprise value; (ii) Manage and maintain
          merchandising strategies including, but not limited to, merchandise
          selection, display, promotion, fulfillment and partnerships to
          increase revenues; (iii) Creation and maintenance of effective
          strategic partnerships, sponsorship agreements and alliances in
          concert with CEO activities in this area.

Executive hereby accepts such employment, upon the terms and subject to the
conditions set forth in the Agreement.

2.   TERM. The term of this Agreement shall by three (3) years, commencing on
     March1, 2000, and ending on February 28, 2003. Nothing herein shall be
     construed as to limit in any manner the rights of the parties hereto to
     terminate Executive's employment with the company in accordance with the
     provisions for termination and for compensation upon termination that are
     contained herein.

3.   DUTIES. During the term of this Agreement, subject to the direction of the
     Board of Directors and the Chief Executive Officer of the Company, the
     Executive shall serve in the capacities set forth in Paragraph 1 hereof.
     The Executive shall devote his full business time and energies to the
     business and affairs of the Company and shall use his best efforts, skills
     and abilities to promote the interests of the Company and to diligently and
     competently perform his duties

4.   COMPENSATION, STOCK OPTIONS AND BENEFITS:

     A.   Executive Compensation. Commencing with the start of employment
          pursuant to this Agreement, Executive shall receive an annual salary
          of $275,000.00 (two hundred fifty thousand dollars) with $175,000.00
          of the annual salary being paid on a bi-weekly basis, and with (4)
          payments of $25,000.00 each to be paid at the end of each quarter, on
          June 1, September 1, December 1 and March 1 (February 28, 2003) of
          each year during the term of this Agreement. .

     B.   Stock Rights and Options.

          i.    Upon execution of this Agreement and payment by Executive of an
                aggregate purchase price of Two Thousand Dollars ($2,000.00),
                Executive shall be issued 200,000 shares of the Company's common
                stock, $0.01 par value, in his name, to be held by an Escrow
                Agent, as provided in the Escrow Agreement of even date
                herewith, as set forth in Exhibit A, which shares may not be
                sold, exchanged, transferred, pledged, hypothecated, or
                otherwise disposed of and are subject to forfeiture as described
                below ("Escrow Stock"). If Executive voluntarily terminates his
                employment or his employment is terminated "for cause" (as
                defined in paragraph 9D), prior to the occurrence of the
                earliest event specified in subsections (a) through (f) below,
                Executive shall forfeit all right, title and interest to the
                Escrow Stock. Otherwise, complete ownership, subject to
                restrictions set forth in the Securities Act of 1933 as amended,
                and the rules and regulations promulgated from time to time by
                the Securities and Exchange Commission, in all of the Escrow
                Stock shall be delivered to Executive promptly on the earliest
                to occur of the following:

               a.   March 1, 2001;

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               b.   Executive's death;

               c.   Executive's permanent disability as defined in paragraph 9B;

               d.   Termination of the Executive's employment by the Company
                    without cause as defined in paragraph 9D;

               e.   Termination by the Executive of his employment as a result
                    of Constructive Discharge as defined in paragraph 9C;

               f.   A "change in control" of the Company which shall be defined
                    as (i) a sale, purchase, merger or other business
                    combination which results in transfer to a third party of an
                    ownership interest of greater that 50% of the company or any
                    successor entity to the Company, (ii) a sale or other
                    disposition of all or substantially all of the Company's
                    assets, or (iii) election by the shareholders of the Company
                    of persons to serve as directors of the Company, comprising
                    more that one-half (1/2) the total number of directors,
                    persons who were not nominated or recommended to the
                    shareholders for election as directors by the Board's
                    nominating committee.

               Provided that Executive has not voluntarily terminated his
               employment or his employment has not been terminated "for cause"
               (as defined in paragraph 9D), prior to the occurrence of the
               earliest event specified in subsections (a) through (f) above,
               upon the occurrence of the earliest event specified in
               subsections (a) through (f) above, the Company shall instruct its
               Escrow Agent to deliver a certificate or certificates in
               Executive's name for the 250,00 shares of the Company's common
               stock, $0.01 par value, to Executive.

          ii.   Upon execution of this Agreement , the company shall issue to
                Executive two Stock Option Agreements as set forth in Exhibits B
                and C, attached hereto and incorporated herein by reference,
                providing Executive conditional rights to purchase up to 166,667
                & 177,778 shares of fully paid, non-assessable common stock of
                the Company in each Stock Option Agreement, respectively.

          iii.  Promptly upon the vesting of stock option rights as provided in
                the Stock Option Agreements, the Company shall provide Executive
                with a Notice of Vesting confirming such vesting of option
                rights. The Notice of Vesting shall set forth the date of
                vesting, the number, exercise price and term of the option
                rights that have vested in Executive.

          iv.   The Escrow Stock and the Stock Options referenced herein shall
                not be subject to any dilution as to percentage of ownership,
                that differs from any dilution of percentage of ownership that
                may be from time to time be appropriately approved and
                undertaken by the Company and that is applicable to all issued
                and outstanding stock of the Company. All shares acquired by
                Executive under these provisions will be subject to statutory
                restrictions, registration and to such lockup agreements as
                Company may reasonably require of its executives. In the event
                that the outstanding shares are changed into or exchanged for a
                different number or kind of shares or securities of the Company,
                or of any other corporation, by reason of reorganization,
                merger, or other subdivision, consolidation. Recapitialization,
                reclassification, stock split, stock divided or combination of
                shares or similar event, the Company shall make an

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                appropriate and equitable adjustment to the Escrow Stock or
                Options so that Executive's proportionate interest shall be
                maintained as before the occurrence of such event to the maximum
                extent possible.

          v.    At the Executive's request and at the Company's expense,
                following the Company's next public offering, the Company shall
                effect a registration on Form S-8, or if necessary on Form S-3,
                with respect to his exercise of his options and, if necessary,
                with respect to the resale of any of his shares of common stock.

          vi.   Executive shall also be entitled to participate in all other
                compensation and benefit plans provided by the Company to its
                executives, including any stock option, retirement and savings
                programs (e.g. a 401(k) plan).

     C.   Benefits: During the term of this Agreement, the Executive shall be
          entitled to participate in or benefit from, in accordance with the
          eligibility and other provisions thereof such medical, insurance,
          pension, retirement, life insurance, profit sharing and other fringe
          benefit plans or policies as the company may make available to, or
          have in effect for, its other senior executives and Executive's
          participation shall not be less that that of any other executive
          officer of the Company. The Company retains the right to terminate or
          alter any such plans or policies from time to time. Participation of
          Executive's family in medical insurance plans may be elected at
          Executive's expense.

     D.   Reimbursement of Business Expenses: During the term of this Agreement
          upon submission of appropriate supporting documentation, the Executive
          shall be reimbursed by the Company for all reasonable business
          expenses actually and necessarily incurred by the Executive on behalf
          of the Company in connection with the performance of services under
          this Agreement.

     E.   Reimbursement of Other Expenses: During the term of this Agreement,
          the Executive shall receive an auto allowance of $500.00 per month and
          shall participate in any other reimbursements (i.e. cellular phone,
          pager, etc.) offered to other senior executives at a level that shall
          not be less than that of any other executive officer of the Company.

     F.   Vacation: During the term of this Agreement Executive shall be
          eligible for fifteen (15)-business days paid vacation per employment
          year (i.e., March 1 through February 28). Vacation days are not
          cumulative and will not carry over from year to year.

     G.   Sick Leave: Executive will be eligible for 5 (five) paid sick days per
          year. Paid sick days can be used for any purpose during the employment
          year. Sick days are not cumulative and will not carry over from year
          to year.

5.   REPRESENTATION OF EXECUTIVE: The Executive represents and warrants that he
     is not a party to, or bound by, any agreement or commitment, or subject to
     any restriction, including but not limited to agreements related to
     previous employment containing confidentiality or non-compete covenants,
     which in the future may have a possibility of adversely affecting or
     interfering with the business of the Company, the full performance by the
     Executive of his duties under this Agreement or the exercise of his best
     efforts hereunder.

6.   CONFIDENTIALITY:

     A.   Confidential Information. The Executive acknowledges that as a result
          of his employment with the Company, the Executive will have knowledge
          of and access to, all proprietary and confidential

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          information of the company, including, without limitation, all
          "Confidential Information" (as defined herein), and that such
          information, even though it may be contributed, developed or acquired
          by the Executive, and whether or not the foregoing information is
          actually novel or unique, constitute valuable assets of the Company
          developed at great expense which are the exclusive property of the
          company or its affiliates. Accordingly, the Executive shall not, at
          any time, either during or subsequent to the terms of this Agreement,
          use, revel, report, publish, transfer or otherwise disclose to any
          person, corporation or other entity (a "person"), any of the
          Confidential Information without the prior written consent of the
          Company's Board of Director's, except to appropriate officers and
          executives of the Company and other appropriate persons who are in a
          contractual or fiduciary relationship with the company and who have a
          need for such information for purposes in the best interests of the
          company, and except for such information which is or becomes generally
          available to the public other than as a result of an unauthorized
          disclosure by the Executive. As used in this Agreement, "Confidential
          Information" shall mean any and all studies, plans, reports, surveys,
          analysis, sketches, drawings, specifications, notes, records,
          memoranda, computer-generated data, computer programs, algorithms, or
          documents, and all other non-public information relating to the
          business activities of the Company, including, without limitation, all
          methods, processes, techniques, equipment, research data, experiments,
          marketing and sales information, personnel data, customer lists,
          pricing data, executive lists, supplier lists, merchandising systems,
          financial data, trade secrets, and the like which presently or, in the
          future, are in the possession of the Company. Said Confidential
          Information may be in either human or computer readable form,
          including, but not limited to, software, source code, hex code, or any
          other form. Confidential Information shall not include any information
          that is available to the general public or that is generally know or
          available in the industry.

     B.   Return of Confidential Information. Upon the termination of the
          Executive's employment with the Company, the Executive shall promptly
          deliver to the Company all manuals. Letters, notes, notebooks, reports
          and copies thereof and all other materials relating to the Company's
          business, including without limitation any materials incorporating
          Confidential Information, which are in the Executive's possession or
          control.

7.   NON-COMPETITION: The Executive acknowledges that his services to be
     rendered hereunder are of a special and unusual character and have a unique
     value to the Company, the loss of which cannot be adequately compensated by
     damages in any court of law. In view of the unique value to the Company of
     the services of the Executive, the Executive hereby covenants and agrees
     that so long as he remains employed by the Company (whether under this
     Agreement or any other written or oral agreement or arrangement) and for a
     period of one (1) year after the termination or expiration of any such
     employment for any reason, the Executive shall not directly or indirectly
     engage in or have an active interest in, anywhere in the world, alone or in
     association with others, as principal, officer, agent, executive,
     consultant, independent contractor, director, partner or stockholder, or
     through the investment of capital lending of money or property, rendering
     of services or otherwise any business competitive with the business engaged
     in by the Company, the Executive hereby acknowledging that the company
     conducts business and distributes its products, or contemplates conducting
     business and distributing its product(s), on a worldwide basis; provided,
     however, that this paragraph 7 shall not prevent the Executive from
     acquiring, solely as investment and through market purchases, up to ten
     percent (10%) of the securities of any issuer that are registered under
     Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended,
     and that are listed or admitted for trading on any United States national
     securities exchange or that are quoted on the National Association of
     Securities Dealers Automated Quotations System. The business in which the
     Company is engaged and from which the Executive shall refrain from engaging
     in following the termination of his employment shall be specified in
     Exhibit E to this Agreement. The description of the Company's business
     shall be revised as often as necessary, (but not less than every six (6)
     months) to reflect the scope and nature of the Company's business from time
     to time, and such revisions to Exhibit E

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     shall be the responsibility of the Executive and of the Chief Executive
     Officer of the Company, as approved by the Board of Directors. So long as
     Executive remains employed by the Company (whether under this Agreement or
     any other written or oral agreement or arrangement) and for a period of one
     (1) year after the termination or expiration of any such employment for any
     reason, the Executive shall not, and shall not permit, cause or authorize
     any of his executives, agents or others under his control to, directly or
     indirectly, on behalf of himself or any other person, to recruit or
     otherwise solicit or induce any person who is an executive of; or otherwise
     engaged by, the Company or any successor to the business of the company or
     any affiliate of the Company to terminate his or her employment or other
     relationship with the Company or such successor or affiliate. The Executive
     shall not at any time, directly or indirectly, use or purport to authorize
     any person to use any name, mark, logo, trade dress or other identifying
     words or images which are the same as or similar to those used at any time
     by the Company or any affiliate in connection with any product or service,
     whether or not such use would be in a business competitive with that of the
     Company. This Restrictive Covenant on the part of the Executive is given
     and made by the Executive to induce MegaMedia to employ the Executive and
     to enter into this Employment Agreement with the Executive, and the
     Executive hereby acknowledges the sufficiency of the consideration for this
     Restrictive Covenant.

     This Restrictive Covenant is not executory or otherwise subject to
     rejection under the Bankruptcy Code. This Restrictive Covenant is a
     reasonable an necessary restraint of trade and does not violate the Sherman
     Antitrust Act, the Florida Antitrust Act, or the common law; it is
     supported by valid business interests, including the protection of
     MegaMedia trade secrets and confidential business information and the
     protection of MegaMedia's relationships with its customers and prospective
     customers, at the one (1) year restriction is essential to the full
     protection of those valid business interests. If any portion of this
     Restrictive Covenant is held by a court of competent jurisdiction to be
     unreasonable, arbitrary, or against public policy for any reason, this
     Restrictive Covenant shall be considered divisible as to line of business,
     time, and geographic area; if a court of competent jurisdiction should
     determine the specified lines of business, the specified period, or the
     specified geographic area to be unreasonable, arbitrary, or against public
     policy for any reason, a narrower line of business, a lesser period, or a
     smaller geographic area that is determined to be reasonable, non-arbitrary,
     and not against public policy for any reason, may be enforced by MegaMedia
     against the Executive.

8.   REMEDIES: The Executive acknowledges that the Company would not enter into
     this Agreement without the covenants set forth in Paragraphs 6,7 and 8 of
     this Agreement and that such covenants are given as an integral part of and
     incident to this Agreement. MegaMedia and the Executive agree that, in the
     event of a breach by the Executive of the Restrictive Covenants set forth
     in Paragraphs 6 and 7, above, such a breach would irreparably injure
     MegaMedia and would leave MegaMedia with no adequate remedy at law, and
     MegaMedia and the Executive further agree that if legal proceedings
     (including arbitration proceedings) should be brought by MegaMedia, against
     the Executive to enforce the Restrictive Covenant, MegaMedia shall be
     entitled to all civil remedies, including without limitation, preliminary
     and permanent injunctive relief restraining the Executive from violating,
     directly or indirectly, either as an individual on his own account or as a
     partner, joint venture, employee, agent, salesman, contractor, officer,
     director, or stockholder or otherwise, the restrictions of Paragraph 6 and
     7, above.

     Nothing in this Employment Agreement shall be construed as prohibiting
     MegaMedia from pursuing any other legal or equitable remedies available to
     it fro breach or threatened breach of the Restrictive Covenants. MegaMedia
     agrees that it shall bring an appropriate action to enforce its rights
     under Paragraphs 6 and 7, within 60 days of that date when facts material
     to the right of action are known or reasonably should have been known to
     MegaMedia.

     Should legal proceedings be brought by MegaMedia against the Executive to
     enforce the Restrictive Covenants, the period of restriction shall be
     deemed to being running on the date of entry of an order granting MegaMedia
     preliminary injunctive relief and shall continue uninterrupted for the next
     succeeding

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     one (1) year; the Executive acknowledges that such purposes and effect
     would be frustrated by measuring the period of restriction from the date of
     termination of employment where the Executive failed to honor the
     Restrictive Covenant until directed to do so by court order. MegaMedia and
     the Executive agree that, if MegaMedia is granted preliminary injunctive
     relief under this Agreement, an injunction bond of no more than
     $275,000.00, shall be sufficient to indemnify the Executive for any costs
     or damages that he might incur if the Court ultimately determines that the
     Executive was wrongfully enjoined. If the Executive breaches any of the
     provisions of Paragraphs 6 or 7, in addition to its other rights and
     remedies, the Company shall have the right to require the Executive to
     account for and pay over to the Company all compensation, profits, money,
     accruals, and other benefits derived or received, directly or indirectly,
     by the Executive from the action constituting such breach.

9.   TERMINATION: This Agreement may be terminated prior to the expiration of
     the term set forth in Paragraph 2 upon the occurrence of any of the events
     set forth in, and subject to the terms of this Paragraph 9.

     A.   Death. This Agreement will terminate immediately and automatically
          upon the death of the Executive. In the event of Executive's death,
          Executive's estate or his designated beneficiary shall be paid by the
          Company all of the compensation and benefits due to Executive through
          the date of his death, including without limitation, the Escrow Stock
          and stock option benefits to which Executive was entitled as of the
          date of his death.

     B.   Disability. This Agreement may be terminated at the Company's option,
          immediately upon written notice to the Executive, if the Executive
          shall suffer a permanent disability. For the purposes of this
          Agreement, the term "permanent disability" shall mean the Executive's
          inability to perform his duties under this Agreement for a period of
          120 consecutive days or for an aggregate of 180 days, whether or not
          consecutive, in any twelve (12) month period, due to illness, accident
          or any other physical or mental condition, as determined by the Board
          of Directors of the Company. In the event of a permanent disability,
          Executive shall be paid by the Company all of the compensation and
          benefits due to Executive through the date of his permanent
          disability, including without limitation, the Escrow Stock and stock
          option benefits to which Executive was entitled as of the date of his
          permanent disability. All stock options vested as of the date
          Executive's employment is terminated due to permanent disability shall
          remain exercisable for the full duration of the option exercise
          period.

     C.   Voluntary termination by Executive.This Agreement may be terminated by
          Executive upon the giving of 60 days written notice to the Board of
          Directors. In the event that Executive voluntarily terminates this
          Agreement, except for "Constructive Discharge" as hereinafter defined,
          he shall be paid by the Company all of the compensation and benefits
          due to Executive through the date of termination and all stock options
          vested as of that date shall remain exercisable for the full duration
          of the option exercise period. In the event that Employee is
          Constructively Discharged, his termination shall be treated as if made
          by Company without cause and Executive shall receive all the
          compensation and benefits specified in paragraph 9E below. For
          purposes of this Agreement, "Constructive Discharge" shall mean:

          i.    any reduction of compensation, stock options or other benefits
                set forth in Paragraph 4 hereof;

          ii.   a material reduction in Executive's job function, duties or
                responsibilities, or a similar change in Executive's reporting
                relationships, it being agreed and understood that Executive's
                failure to win re-election to the Board of Directors (after his
                election to an initial term as provided in Paragraph 19 hereof)
                shall not constitute "Constructive

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                Discharge" so long as the shareholders bound by the Voting
                Agreement attached hereto as Exhibit D shall have voted in
                accordance with the terms of that agreement;

          iii.  a required relocation of Executive more than 35 miles from the
                Company's offices at 57 West Pine Street, Orlando, Florida
                32801; or,

          iv.   any breach of any of the material terms of this Agreement by the
                Company which is not fully cured within 15 (fifteen) days of
                Company's receipt of written notice thereof from Executive.

     D.   Cause. This Agreement may be terminated at the Company's option,
          immediately upon written notice to the Executive, upon (i)
          "Misconduct" which includes, but is not limited to, the following,
          which shall not be construed in pari materia with each other: (a)
          Conduct evincing such willful or wanton disregard of an employer's
          interests as is found by the Company's Board of Directors to be in
          deliberate violation or disregard of standards of behavior which the
          employer has the right to expect of the Executive; or (b) Carelessness
          or negligence of such a degree or recurrence as is found by the
          Company's Board of Directors to manifest culpability, wrongful intent,
          or evil design, or to show an intentional and substantial disregard of
          an employer's interests or of the Executive's duties and obligations
          to the employer, or (ii) fraud, criminal conduct (as evidenced by a
          plea of no contest or guilty or upon conviction of the Executive for
          any felony) or embezzlement by the Executive. In the event that
          Executive is terminated for cause, he shall be paid by the Company all
          compensation and benefits due through the date of written notice of
          termination, including without limitation all stock option benefits
          vested prior to the date of written notice of termination hereunder.
          All stock options vested as of the date Executive's employment is
          terminated for cause shall remain exercisable for the full duration of
          the option exercise period.

     E.   Without Cause. This Agreement may be terminated at the Company's
          option without cause immediately upon notice to the Executive. In the
          event the Company elects to terminate this Agreement without cause
          pursuant to this subsection, or the Executive is Constructively
          Discharged as specified in Paragraph 9C above, the Company shall:

          i.   Pay to Executive as wages in lieu of notice the sum of
               $275,000.00, to be paid in four payments of $68,750.00 each, with
               the first payment paid immediately upon termination and
               subsequent payments of $68,750.00 being paid on the 30th, 60th
               and 90th day after termination, until paid in full.

          ii.  Immediately vest all of Executive's Escrow Stock and stock option
               rights as provided in the Stock Option Agreements as though he
               remained employed for the entire three year term of this
               Agreement.

          iii. Simultaneous with delivery of the Executive's general release
               referenced in paragraph 9F, Company shall deliver to Executive or
               Executive's estate a general release, in form substantially
               similar to Executive's Release, releasing the Executive and/or
               his estate from any and all rights, claims, demands, judgments,
               obligations, liabilities and damages, whether accrued or
               unaccrued, asserted or unasserted, and whether known or unknown,
               relating to the Company which ever existed, then existed, or may
               thereafter exist, by reason of the termination of this Agreement
               without cause except Executive's future performance of his duties
               and obligations under Paragraphs 6 and 7 of this Agreement.

     F.   Upon the termination of Executive's employment by the Company without
          cause, simultaneously with the receipt of the first installment of the
          wages in lieu of notice, and as a condition to the

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          receipt thereof, the Executive or his estate, shall deliver to the
          Company a general release form acceptable to the Company releasing the
          Company form any and all rights, claims, demands, judgments,
          obligations, liabilities and damages, whether accrued or unaccrued,
          asserted or unasserted, and whether known or unknown, relating to the
          Company which ever existed, then existed, or may thereafter exist, by
          reason of termination of this Agreement without cause, except payment
          of $275,000.00 wages in lieu of notice and the Escrow Stock and the
          vested stock options.

     G.   Effect of Termination. In the event of any termination under this
          Paragraph 9, the Company shall have no further obligation under this
          Agreement to make any payment to, or bestow any benefits on, the
          Executive from and after the date of the termination other than
          payments or benefits accrued and due and payable to Executive as
          provided herein.

10.  INVENTIONS, IDEAS, PROCESSES AND DESIGNS: All inventions, ideas, processes,
     programs, software, and designs (including all improvements) (i) conceived
     (whether or not actually conceived during regular business hours) or made
     by the Executive during the course of his employment with MegaMedia and for
     a period of six (6) month subsequent to the termination of such employment
     with MegaMedia, and (ii) integrally related to the business of MegaMedia,
     shall be disclosed in writing promptly to MegaMedia and shall be the sole
     and exclusive property of MegaMedia. The Executive shall cooperate with
     MegaMedia and its attorneys in the preparation of patent and copyright
     applications for such developments and shall promptly assign all such
     inventions, ideas, processes, and designs to MegaMedia. The decision to
     file for patent or copyright protection or to maintain such development as
     a trade secret shall be in the sole discretion of MegaMedia, and the
     Executive shall be bound by such decision. The Executive shall provide, on
     the back of this Employment Agreement, a complete list of all inventions,
     ideas, processes, and designs, if any, patented or unpatented, copyrighted
     or uncopyrighted, including a brief description, which he or she made or
     conceived prior to his or her employment with MegaMedia and which therefore
     are excluded from the scope of this Agreement.

11.  CONSIDERATION. The Executive expressly acknowledges and agrees that the
     execution by MegaMedia of this Employee Agreement constitutes full,
     adequate, and sufficient consideration to the Executive from MegaMedia for
     the duties, obligations, and covenants of the Executive under this
     Agreement, including, by way of illustration and not by way of limitation,
     the agreements, covenants, and obligations of the Executive under
     Paragraphs 6 and 7 of this Agreement. MegaMedia expressly acknowledges and
     agrees similarly with respect to the consideration received by it from the
     Executive under this Agreement.

12.  INDEBTEDNESS. If, during the course of the Executive's employment under
     this Employment Agreement, the Executive becomes indebted to MegaMedia for
     any reason, MegaMedia may, if it so elects, set off any sum due to
     MegaMedia from the Executive and collect from the Executive any remaining
     balance.

13.  TRAINING EXPENSES. MegaMedia shall pay for all reasonable training expenses
     incurred by the Executive while he is employed under this Employment
     Agreement.

14.  CONSENT TO PERSONAL JURISDICTION AND VENUE; WAIVER OF JURY TRIAL. The
     Executive and Company hereby consent to personal jurisdiction and venue,
     for any action brought by either party arising out of a breach or
     threatened breach of this Employment Agreement, exclusively in the United
     States District Court for the Middle District of Florida, Orlando Division,
     or in the Circuit Court in and for Orange County, Florida; the Executive
     and Company hereby agree that any action brought by either party, alone or
     in combination with others, against the other party, whether arising out of
     this Agreement or otherwise, shall be brought exclusively in the United
     States District Court for the Middle District of Florida, Orlando Division,
     or in the Circuit Court in and for Orange County, Florida. The Executive
     and Company hereby agree that any controversy which may arise under this
     Agreement would involve complicated and difficult factual and legal issues.
     Therefore, if a court of law determines for any reason that the arbitration
     clause of

                                                                    Page 9 of 27
<PAGE>

     Paragraph 15 of the Agreement is unenforceable, then any action brought by
     MegaMedia against the Executive, alone or in combination with others,
     against MegaMedia, whether arising out of this Agreement or otherwise,
     shall be determined by a Judge sitting without a jury.

15.  SERVICE OF PROCESS - MEGAMEDIA. If the Executive institutes legal
     proceedings against MegaMedia, the signatories to this Employment Agreement
     agree that service of process by registered and certified U.S mail of the
     complaint and summons to the national headquarters of MegaMedia, currently
     located at 57 West Pine Street, Orlando, Florida 32801, is reasonably
     calculated to apprise MegaMedia of any legal proceedings instituted against
     it by the Executive. The above-described method for service of process
     shall not constitute by MegaMedia to the exercise of personal jurisdiction
     by any court except the United States District Court for the Middle
     District of Florida, Orlando Division or the Circuit Court for Orange
     County, Florida, in connection with any controversy or dispute between the
     signatories to this Agreement.

16.  SERVICE OF PROCESS - EXECUTIVE. If MegaMedia institutes legal proceedings
     against the Executive, the parties agree that, except as provided below,
     MegaMedia shall server process by process server upon the Executive at his
     last known residence address located in the United States. The Executive
     shall notify MegaMedia in writing of any change in his residence address
     within ten (10) calendar days of the change. If the Executive changes his
     U.S. residence address and fails to notify MegaMedia in writing within ten
     (10) calendar days of the change, the signatories agree that the following
     specified method of service of process is reasonably calculated to reach
     the Executive and to apprise the Executive of the legal proceedings
     instituted by MegaMedia:

     MegaMedia shall (i) serve copies of the summons and complaint by certified
     and registered U.S. Mail to the Executive's last known residence located in
     the United States and (ii) place a public notice in a newspaper of general
     circulation in the geographic area of the Executive's last known residence
     address for a period of two (2) consecutive weeks following commencement
     (i.e., filing) of the proceedings. The Executive expressly acknowledges
     that the above-described method for service of process is (i) reasonably
     calculated to apprise him of any legal proceedings instituted against him
     by MegaMedia and (ii) sufficient for the court issuing the summons or the
     American Arbitration Association to exercise personal jurisdiction over
     him.

17.  ACKNOWLEDGEMENTS. The Executive hereby acknowledges that he has been
     provided with a copy of this Employment Agreement for review prior to
     signing it, that he has been given the opportunity to have this Agreement
     reviewed by his own attorney prior to signing it, that he understands the
     purposes and effects of this Agreement, and that he has been given a signed
     copy of this Agreement for his own records. The parties hereto acknowledge
     that this Agreement and all matters contemplated herein, have been
     negotiated between both of the parties hereto and their respective legal
     counsel and that both parties have participated in the drafting and
     preparation of this Agreement from the commencement of negotiation at all
     times through the executive hereof.

18.  WAIVER. The waiver by either party of a breach or threatened breach of this
     employment Agreement by the other party shall not be construed as a waiver
     of any subsequent breach. The refusal or failure of MegaMedia to enforce
     the Restrictive Covenants or prohibitions of this Agreement (or any similar
     Agreement) against any other executive, agent, or independent contractor,
     for any reason shall not constitute a defense to the enforcement by
     MegaMedia of the Restrictive Covenants or the prohibitions of this
     Agreement, nor shall it give rise to any claim or cause of action by such
     executive, agent, or independent contractor or consulting against
     MegaMedia.

19.  BOARD OF DIRECTORS. MegaMedia agrees that the Board of Directors shall be
     increased from the current number of two (2) directors and that one of the
     new board positions shall be filled by the Executive pursuant to the Voting
     Agreement attached hereto as Exhibit D and that the Executive shall be
     elected to an

                                                                   Page 10 of 27
<PAGE>

     initial term on the Board of Directors by June, 2000. This section shall be
     deemed to be a material provision of this Agreement.

20.  INDEMNIFICATION. The Company shall indemnify Executive to the fullest
     extent permitted by applicable law against damages and expenses (including
     fees and disbursements of counsel) in connection with his status or arising
     out of the ordinary and proper conduct of his duties as an employee,
     officer and director of the Company.

21.  RELOCATION. The Executive and Company agree that Executive shall relocate
     from his current residence in Rye, New York to Orlando, Florida where he
     will be employed at the Company's main offices in Orlando, Florida. In
     conjunction with Executive's relocation, Company agrees to pay for:

     A.   Two, one week house hunting trips for Executive and his family (or
          trips for some members of Executive's family of equivalent value).

     B.   Packing and shipment of personal goods.

     C.   Storage of goods at new location (if necessary) for up to 90 days.

     D.   Temporary housing allowance of up to $6,000.00.

     E.   50% of the Real Estate broker's commission (not to exceed 3.5% of the
          sale price) upon the sale of Executive's Rye, New York residence (the
          "Residence") subject to the following conditions:

          i.   Executive shall have reasonably offered the Residence for sale on
               customary terms and at a price comparable to other similarly
               situated properties; and,

          ii.  Executive shall have used his best efforts to sell the Residence
               on such term and at such a price, for a period of 90 days; and,

          iii. A contract for the sale of the Residence has not been submitted
               to Executive offering to purchase the Residence at a price equal
               to or higher than the price and on comparable terms, at which the
               Residence was offered for sale by Executive, within the first 90
               days after initially advertising and offering the Residence for
               sale as set out above; and,

          iv.  Executive shall have entered into a real estate sales listing
               agreement with a real estate broker of Executive's choice for the
               sale of the Residence.

22.  MISCELLANEOUS.

     A.   Entire Agreement. This Employment Agreement, together with Exhibits A,
          B, C, D & E constitutes the entire agreement between its signatories
          pertaining to the subject matters of the Agreement, and it supersedes
          all negotiations, preliminary agreements, and all prior and
          contemporaneous discussions and understandings of the signatories in
          connection with the subject matters of the Agreement. Except as
          otherwise herein provided, no covenant, representation, or condition
          not expressed in this Agreement, or in an amendment made and executed
          in accordance with the provisions of subparagraph (b) of this
          paragraph, shall be binding upon the signatories or shall affect or be
          effective to interpret, change, or restrict the provisions of this
          Agreement.

     B.   Amendments. No change, modification, or termination of any of the
          terms, provisions, or conditions of this Agreement shall be effective
          unless made in writing and signed or initialed by all signatories to
          this Agreement.

                                                                   Page 11 of 27
<PAGE>

     C.   Governing Law. This Agreement shall be governed and construed in
          accordance with the statutory and decisional law of the State of
          Florida governing contracts to be performed in their entirety in
          Florida.

     D.   Separability. If any paragraph, subparagraph, or provision of this
          Agreement, or the application of such paragraph, subparagraph or
          provision, is held invalid by a court of competent jurisdiction, the
          remainder of the Agreement, and the application of such paragraph,
          subparagraph, or provision to persons or circumstances other than
          those with respect to which is held invalid, shall not be affected.

     E.   Headings and Captions. The titles and captions of paragraphs and
          subparagraphs contained in this Agreement are provided for convenience
          of reference only, and they shall not be considered a part of this
          Agreement for purposes of interpreting or applying this Agreement;
          such titles or captions are not intended to define, limit, extend,
          explain or describe the scope or extent of this Agreement or any of
          its terms, provisions, representations, warranties, or conditions in
          any manner or way whatsoever.

     F.   Attorney's Fees. In the event it shall be necessary for any party to
          seek arbitration or court intervention in order to enforce or defend
          its rights hereunder, the prevailing party in any such action shall
          recover from the non-prevailing party or parties, all reasonable
          attorneys' and paralegal fees in the trail and appellate courts and in
          all arbitration, including expert witness fees, deposition costs
          (appearance fees and transcript charges), injunction bond premiums,
          travel and lodging expenses, arbitration fees and charges, and all
          other reasonable costs and expenses.

     G.   Continuance of Agreement. The rights, responsibilities, and duties of
          the signatories to this Agreement, and the covenants and agreements
          contained in this Agreement, shall continue to bind the signatories,
          shall continue in full force and effect until each and every
          obligation of the signatories pursuant to this Agreement (and any
          document or agreement incorporated hereby by reference) shall have
          been fully performed, and shall be binding upon the successors and
          assigns of the signatories.

     H.   Successors and Assigns. Neither party shall have the right to assign
          this personal Agreement, or assign any rights or delegate any
          obligations hereunder, without the consent of the other party;
          provided, however, that upon the sale of all or substantially all of
          the assets, business and goodwill of the Company to another company,
          this Agreement shall inure to the benefit of; and be binding upon,
          both Executive and the company purchasing such assets, business and
          goodwill, or surviving such merger or consolidation, as the case may
          be, in the same manner and to the same extent as though such other
          company were the Company, subject to the Executive's rights hereunder.
          Subject to the foregoing, this Agreement shall inure to the benefits
          of; and be binding upon, the parties hereto and their legal
          representatives, heirs, successors and assigns.

     I.   Additional Acts. The Executive and the Company each agrees to execute,
          acknowledge and deliver and file, or cause to be executed,
          acknowledged and delivered and filed, any and all further instruments,
          agreements or documents as may be necessary or expedient in order to
          consummate the transactions provided for in this Agreement and do any
          and all further acts and things as may be necessary or expedient in
          order to carry out the purposes and intent of this Agreement.

     J.   Notices. Any notice or other communication under this Agreement, other
          than as provided above, shall be delivered personally or sent by
          certified mail, return receipt requested, postage prepaid, or sent by
          facsimile or prepaid overnight courier to the parties at the addresses
          set forth below (or at such other addresses as shall be specified by
          the parties by like notice). Such notices, demands,

                                                                   Page 12 of 27
<PAGE>

          claims and other communications shall be deemed given when actually
          received or (a) in the case of delivery by overnight service with
          guaranteed next day delivery, the next day or the day designated for
          delivery, (b) in the case of facsimile, the date upon which the
          transmitting party received confirmation of receipt by facsimile,
          telephone or otherwise.

          To the Company:                             To the Executive:
          MegaMedia Networks, Inc.                    Paul J. Turcotte
          57 West Pine Street                         100 Allendale Drive
          Orlando, Florida  32801                     Rye, New York 10580
          Attn: Legal Department
          Fax: 407-245-2943

     K.   Counterparts. This Agreement may be executed in counterparts, each of
          which shall be deemed an original and all of which, together, will
          constitute one and the same agreement. Any facsimile version of a
          manually executed signature page delivered by one party to the other
          shall be deemed manually executed and delivered original.

     L.   Rights as Stockholder. Executive shall have no rights as a stockholder
          for which options have not been exercised.

-----------------------------------         ------------------------------
Witness                                     Executive - Paul J. Turcotte

-----------------------------------         ------------------------------
Attest: By Mark R. Dolan, Secretary         MegaMedia Networks, Inc.
                                            By William A. Mobley, Jr., President

                                                                   Page 13 of 27
<PAGE>

                                ESCROW AGREEMENT
                                    EXHIBIT A

         THIS ESCROW AGREEMENT (the "Escrow Agreement") is dated as of January
10, 2000, by and among MegaMedia Networks, Inc., (the "Company"), Paul J.
Turcotte (the "Executive"), and Christopher P. Flannery, an attorney who
practices law in the Commonwealth of Pennsylvania, as Escrow Agent (the "Escrow
Agent").

         WHEREAS, the Stockholders of the Company have transferred shares of
common stock of the Company (the "Shares") to the Escrow Agent to support stock
rights granted or to be granted to current or new employees, including Paul J.
Turcotte as the Company's President utilizing an escrow arrangement as described
in this Escrow Agreement; and,

         WHEREAS, the terms and conditions of Executive's employment with the
Company are set forth in an employment agreement between them, dated as of March
1, 2000, (the "Employment Agreement"), attached hereto and incorporated herein
by reference; and,

         WHEREAS, the Escrow Agent is willing to act hereunder on the terms and
conditions set forth herein;

         NOW, THEREFORE, in consideration of the mutual covenants and
obligations set forth below, and intending to be legally bound, the parties
hereto hereby agree as follows:

         1.       ESCROW ACCOUNT

         1.1 DEPOSIT. The Stockholders have delivered the Shares to the Escrow
Agent along with blank stock powers with Medallion guaranteed signatures (the
"Escrow") to be held by the Escrow Agent in a separate account (the "Escrow
Account") subject to the terms and provisions of this Escrow Agreement. The
Shares deposited in the Escrow Account, are commingled and no longer the
property of the Stockholders. The Shares in the Escrow Account will be used to
support stock rights granted or to be granted to the Company's executives.

         1.2 TRANSFER TO EXECUTIVE. Upon execution of the Employment Agreement
between Executive and the Company and payment to the Escrow Agent of Two
Thousand Dollars ($2,000.00), 200,000 of the shares in the Escrow Account shall
be transferred on the books of the Company to Executive and a certificate for
those 200,000 shares shall be issued in Executive's name. Executive shall
thereupon be a stockholder in the Company with respect to those shares and shall
have the rights of a stockholder with respect to all such shares, including the
rights to vote such shares and to receive any dividend or other distributions
paid with respect to such shares, but shall not be able to sell, exchange,
transfer, pledge, hypothecate or otherwise dispose of the shares until the
conditions specified in paragraph 4(B)(i) of the Employment Agreement have been
met.

         1.3 STOCK POWER. In aid of the restrictions on transfer of the Shares,
Executive's execution of the Employment Agreement shall acknowledge his
agreement to have the certificate evidencing his shares held by Escrow Agent as
security for Executive's performance of the Employment Agreement until the
conditions specified in paragraph 4(B)(i) of the Employment Agreement have been
met. Executive shall also execute a stock power agreement with a Medallion
guaranteed signature, endorse in blank, a copy of which is attached hereto as
Attachment A, and deposit it with the Escrow Agent until the conditions in
paragraph 4(B)(i) have been met or until the shares are forfeited a specified in
the Employment Agreement.

                                                                   Page 14 of 27
<PAGE>

         2. DISBURSEMENT OF ESCROW.

         2.1 DELIVERY OF ESCROW STOCK TO EXECUTIVE. Provided that Executive has
not voluntarily terminated his employment or employment has not been terminated
"for cause" (as defined in paragraph 9D of the Employment Agreement) prior to
the occurrence of the earliest event specified in paragraphs 4(b)(i)(a) through
(f) of the Employment Agreement, upon the occurrence of the earliest event
specified in the paragraph 4(b)(i)(a) through (f), of the Employment Agreement
the Escrow Agent shall promptly deliver to Executive, both the certificate or
certificates held by him in Executive's name and the executed stock power
agreement.

         2.2 CANCELLATION OF ESCROW STOCK. In the event Executive has
voluntarily terminated his employment or his employment has been terminated "for
cause" (as defined in paragraph 9D of the Employment Agreement) prior to the
occurrence of the earliest event specified in paragraphs 4(b)(i)(a) through (f)
of the Employment Agreement, Escrow Agent is authorized and directed to send the
executed stock power agreement with Medallion guaranteed signature, endorsed in
blank, together with the stock certificate or certificates evidencing ownership
of the 200,000 shares of the Company's common stock, $0.01 par value, held by
Escrow Agent in Executive's name to the Transfer Agent and to direct the
Transfer Agent to cancel the Escrow Stock.

         2.3 CONTROVERSIES. If any controversy arises between two or more of the
parties, or between any of the parties and any person not a party, as to whether
or not or to whom the Escrow Agent shall deliver the Escrow or any portion
thereof or as to any other matter arising out of or relating to this Escrow
Agreement, the Escrow Agent shall not be required to determine the same and need
not make any delivery of the Escrow concerned or any portion thereof but may
retain the same until the rights of the parities to the dispute shall have been
finally determined by agreement or by final judgment of a court of competent
jurisdiction after all appeals have been finally determined (or the time for
further appeals has expired without an appeal having been made). The Escrow
Agent shall deliver that portion of the Escrow concerned covered by such
agreement or final order within five (5) days after the Escrow Agent receives a
copy thereof. The Escrow Agent shall assume that no such controversy has arisen
unless and until it receives written notice from the Company or the Executive
that such controversy has arisen, which refers specifically to this Agreement
and identifies the adverse claimants to the controversy.

         2.4 NO OTHER DISBURSEMENTS. No portion of the Escrow shall be disbursed
or otherwise transferred except in accordance with this Escrow Agreement.

         3. ESCROW AGRENT. The acceptance by the Escrow Agent of his duties
hereunder is subject to the following terms and conditions, which the parties to
this Agreement hereby agree shall govern and control with respect to the rights,
duties, liabilities and immunities of the Escrow Agent:

         3.1 The Escrow Agent shall not be responsible or liable in any manner
whatever for the sufficiency, correctness, genuineness or validity of any
property deposited with or held by him.

         3.2 The Escrow Agent shall be protected in acting upon any written
notice, certificate, instruction, request or other paper or document believed by
him to genuine and to have been signed or presented by the proper party or
parties.

         3.3 The Escrow Agent shall not be liable for any act done hereunder
except in the case of its willful misconduct or bad faith.

         3.4 The Escrow Agent shall not be obligated or permitted to investigate
the correctness or accuracy of any document or to determine whether or not the
signatures contained in said documents are genuine or to require documentation
or evidence substantiating any such document or signature.

                                                                   Page 15 of 27
<PAGE>

         3.5 The Escrow Agent shall have no duties as Escrow Agent except those
which are expressly set forth herein, and in any modification or amendment
hereof; provided, however, that no such modification or amendment hereof shall
affect its duties unless it shall have given its written consent thereto. The
Escrow Agent shall not be prohibited from owning an equity interest in the
Company or any third party that is in any way affiliated with or conduct
business with the Company.

         3.6 The company and the Executive acknowledge that the Escrow Agent is
practicing attorney and may have worked with the Company, the Stockholders, the
Executive or affiliates of them on other unrelated transactions, and that they
and each of them has specifically requested that the Escrow Agent draft the
documents for this transaction and act as Escrow Agent. Each party represents
that the Escrow Agent draft the documents for this transaction and act as Escrow
Agent. Each party represents that it has retained legal and other counsel of its
choosing with respect to the transactions contemplated herein and is satisfied
in its sole discretion with the form and content of the documentation drafted by
the Escrow Agent. The parties hereby waive any objection to the Escrow Agent so
acting based upon conflict of interest or lack of impartiality. The Escrow Agent
agrees to act impartially and in accordance with the terms of this Agreement and
with the parties' respective instructions, so long as they are not in conflict
with the terms of this Escrow Agreement.

         4. TERMINATION. This Agreement shall terminate on the earlier of (a)
the date on which the certificate or certificates for the 200,000 shares shall
have been transferred to Executive, or (b) the next business day after the
expiration of Executive's stock rights under paragraph 4B(i) of the Employment
Agreement.

         5. MISCELLANEOUS.

         5.1 INDEMNIFICATION OF ESCROW AGENT.

         (a) The Company and the Executive each agree, jointly and severally, to
indemnify the Escrow Agent for, and to hold him harmless against, any loss
incurred without willful misconduct or bad faith on the Escrow Agent's part,
arising out of or in connection with the administration of this Agreement,
including the cost and expenses of defending himself against any claim or
liability in connection with the exercise or performance of any of its powers or
duties hereunder. The indemnification shall not apply to a party with respect to
a direct claim against the Escrow Agent by such party alleging in good faith a
breach of this Escrow Agreement by the Escrow Agent, which claim result in a
final non-appealable judgment against the Escrow Agent with respect to such
claim.

         (b) In the event of any dispute as to the nature of the rights or
obligations of the Executive, the Company or the Escrow Agent hereunder, the
Escrow Agent may at any time or from time to time interplead, deposit and/or pay
all or any part of the Escrow Account with or to a court of competent
jurisdiction sitting in Philadelphia, Pennsylvania or in any appropriate federal
court, in accordance with the procedural rules thereof. The Escrow Agent shall
give notice of such action to the Company and the Executive. Upon such
interpleader, deposit or payment, the Escrow Agent shall immediately and
automatically be relieved and discharged from all further obligations and
responsibilities hereunder, including the decision to interplead, deposit or pay
such funds.

         5.2 AMENDMENTS. This Escrow Agreement may be modified or amended only
by a written instrument executed by each of the parties hereto.

         5.3 NOTICES. All communications required to be given under this
agreement to any party shall be sent by first class mail or facsimile to such
party at the address listed below or such other addresses as shall be specified
by the parties by like notice.

                                                                   Page 16 of 27
<PAGE>

         5.4 SUCCESSORS AND ASSIGNS. This Escrow Agreement shall bind and inure
to the benefit of the parties hereto and their respective successors and
assigns; provided, however that the Escrow Agent shall not assign its duties
under this Escrow Agreement.

         5.5 GOVERNING LAW. This Escrow Agreement shall be governed by and
construed and interpreted in accordance with the laws of the Commonwealth of
Pennsylvania.

         5.6 COUNTERPARTS. This Escrow Agreement may be executed in two or more
counterparts, each of which shall be an original, and all of which together
shall constitute one and the same agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.

-------------------------------             ------------------------------------
Executive - Paul J. Turcotte                MegaMedia Networks, Inc.,
100 Allendale Drive                         By William A. Mobley, Jr., President
Rye, New York 10580                         57 West Pine Street
                                            Orlando, Florida 32801

ESCROW AGENT:

-------------------------------
Christopher P. Flannery, Esq.
Astor Weiss, Kaplan, Watters & Strong, LLP
The Belleveue, 6th Floor
Broad Street at Walnut
Philadelphia, PA 19103

                                                                   Page 17 of 27
<PAGE>

                                    EXHIBIT B
                             STOCK OPTION AGREEMENT

         STOCK OPTION AGREEMENT as of March 1, 2000, by and between MegaMedia
Networks, Inc. (the "Company"), and Paul J. Turcotte, (the "Optionee").

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

         In consideration for the Optionee signing an Employment Agreement of
even date herewith (the "Employment Agreement") with the Company and for other
good and valuable consideration, receipt of which is hereby acknowledged, the
company hereby grants the Optionee the option to acquire shares or the common
stock of the Company upon the following terms and conditions:

1.       GRANT OF OPTION

         A.       The Company hereby grants to the Optionee the right and option
                  (the "Option") to purchase up to 166,667 fully paid and
                  non-assessable shares of Common Stock par value $.01 per share
                  of the Company (the "Shares"), subject to the vesting
                  provisions described below.

         B.       This Option shall vest in Executive on the earliest to occur
                  of the following:

                  (i)      On February 28, 2002, provided that Executive remains
                           employed by Company, a parent or subsidiary
                           corporation of Company; or

                  (ii)     Upon termination of Executive's employment by Company
                           without "Cause" as defined in paragraph 9D of the
                           Employment Agreement prior to February 28, 2002; or

                  (iii)    Upon Executive's voluntary termination of his
                           employment for "Constructive Discharge" as defined
                           paragraph 9C of the Employment Agreement, prior to
                           February 28, 2002; or

                  (iv)     A "change in control" of the Company, prior to
                           February 28, 2002. A "change in control" of the
                           Company shall be defined as (i) a sale, purchase,
                           merger or other business combination which results in
                           transfer to a third party of an ownership interest of
                           greater than 50% of the company or any successor
                           entity to the Company, (ii) a sale or other
                           disposition of all or substantially all of the
                           Company's assets, or (iii) election by the
                           shareholders of the Company of persons to serve as
                           directors of the Company, comprising more than
                           one-half (1/2) the total number of directors, persons
                           who were not nominated or recommended to the
                           shareholders for election as directors by the Board's
                           nominating committee.

         C.       The date on which the Option vest under this paragraph shall
                  be know as the "Vesting Date".

         D.       The Option once vested, may be exercised during the period
                  ("Option Period") commencing on the Vesting Date and expiring
                  at 5:00 p.m. Eastern Standard Time on the date that is exactly
                  ten (10) years after the Vesting Date. For example, if the
                  Vesting Date is February 28, 2002, the Option Period shall
                  expire at 5:00 p.m. on February 28, 2012. Upon expiration of
                  the Option Period the Optionee shall have no further right to
                  purchase any shares not then purchased. The Company shall at
                  all times during the Option Period have available such number
                  of Shares as will be sufficient to satisfy the Option.

                                                                   Page 18 of 27
<PAGE>

         E.       It is not intended that these Options qualify as Incentive
                  Stock Options within the meaning of Section 422A of the
                  Internal Revenue Code of 1986, as amended (the "Code").

2.       EXERCISE PRICE

         The exercise price of the Option (the "Exercise Price") shall be Three
         Dollars ($3.00) per Share, and shall be payable by certified or bank
         check payable to the order of the Company at the time of the exercise.
         As an alternative, Optionee may present Shares already owned by the
         Optionee with a market value at least equal to the aggregate Exercise
         Price of the Options which Optionee seeks to exercise.

3.       EXERCISE OF OPTION

         The Optionee may exercise this Option in whole or in part, by providing
         notice to the Company, in the form attached as Exhibit A, by registered
         or certified mail, return receipt requested, or by overnight mail or
         personal delivery, addressed to its principal office, signed by
         Optionee, indicating the number of Options which he desires to
         exercise. The notice shall be accompanied by payment of the Exercise
         Price as specified in Paragraph 2 above. As soon as practicable after
         the receipt of such notice of exercise, the Company shall cause the
         Company's transfer agent to issue to the Optionee certificates issued
         in the Optionee's name evidencing the Shares purchased by the Optionee.

4.       DEATH OF OPTIONEE

         In the event of the death of the Optionee, any unexercised portion of
         his Option shall be exercisable (to the extent that such Option was
         exercisable at the time of his death) for one hundred and twenty (120)
         days after the Optionee's death only by his personal representative or
         such persons to whom the deceased Optionee's rights shall pass under
         the Optionee's will or by the laws of descent and distribution.

5.       NON-TRANSFERABILITY OF OPTION

         The Optionee may not give, grant, sell exchange, transfer legal title,
         pledge, assign or otherwise encumber or dispose of the Option or any
         interest therein, otherwise than by will or the laws of descent and
         distribution and, except as provided in this paragraph and paragraph 4,
         the Option shall be exercisable only by the Optionee. Upon any attempt
         to so transfer the Option, or upon the levy or attachment or similar
         process of the Option, the Option shall automatically become null and
         void.

6.       RESTRICTION ON ISSUANCE OF SHARES - INVESTMENT REPRESENTATION

         By accepting the Option, the Optionee agrees for himself, his heirs and
         legatees that any and all Shares purchased upon the exercise of the
         Option shall be acquired for investment and not for distribution. All
         shares acquired by Executive under these provisions will be subject to
         statutory restrictions, registration and to such lockup agreements as
         Company may reasonably require of its executives. Upon the issuance of
         any or all of the Shares subject to the Option, the Company, in its
         discretion, may require the Optionee, or his heirs or legatees
         receiving such Shares to deliver to the company a representation in
         writing, in a form satisfactory to the Board of Directors, that such
         Shares are being acquired in good faith for investment and not for
         distribution. The Company may place a "stop transfer" order with
         respect to such Shares with its transfer agent and will place and
         appropriate restrictive legend on the certificate(s) evidencing such
         Shares. The Company agrees to register the Shares as part of any Form
         S-8 registration by the Company for so long as any Shares subject to
         Options remain outstanding.

                                                                   Page 19 of 27
<PAGE>

7.       ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

         A.       The Stock Option referenced herein shall not be subject to any
                  dilution as to percentage of ownership that may be from time
                  to time be appropriately approved und undertaken by the
                  company and that is applicable to all issued and outstanding
                  stock of the Company. In the event that the outstanding shares
                  are changed into or exchanged for a different number or kind
                  of shares or securities of the Company, or of any other
                  corporation, by reason of reorganization, merger, or other
                  subdivision, consolidation. Recapitalization,
                  reclassification, stock split, stock divided or combination of
                  shares or similar event, the Company shall make an appropriate
                  and equitable adjustment to the Stock Option or to the
                  Purchase Price so that Executive's Proportionate interest
                  shall be maintained as before the occurrence of such event to
                  the maximum extent possible.

         B.       Any adjustment in the number of Shares shall apply
                  proportionately to only the then unexercised portion of the
                  Option. If fractional Shares would result from any such
                  adjustment, the adjustment shall be revised to the next higher
                  whole number.

8.       NO RIGHTS AS STOCKHOLDER

         The Optionee shall have no rights as a stockholder in Shares as to
         which the Option has not been exercised.

9.       TAXES

         The Company may make such provisions as it may deem appropriate for the
         withholding of any taxes which it determines is required in connection
         with the exercise of the Option granted hereby. The Company may further
         require notification from the Optionee upon any disposition of Shares
         acquired pursuant to the exercise of the Options granted hereunder.

10.      BINDING EFFECT

         Except as herein otherwise expressly provided, this Agreement shall be
         binding upon and shall inure to the benefit of the parties hereto,
         their legal representatives and assigns.

11.      GOVERNING LAW

         This Agreement shall be governed by and construed in accordance with
         the laws of the State of Florida applicable to agreement made and to be
         performed wholly within the State of Florida

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
         date and year first above written.

------------------------------------        ------------------------------------
Witness:                                    MegaMedia Networks, Inc.
         ---------------------------        By William A. Mobley, Jr., President

------------------------------------        ------------------------------------
Witness:                                    Optionee:
         ---------------------------                 ---------------------------

                                                                   Page 20 of 27
<PAGE>

                                  EXERCISE FORM

(To be Executed If Optionee Desires to Exercise the Options)

TO:      MegaMedia Networks, Inc.

         The undersigned, being the Optionee of certain options ("Options") to
purchase shares of common stock of MegaMedia Networks, Inc. (the "Company" and
the "Shares"), under the conditions thereof, hereby exercises Options to
purchase Shares evidenced by the within Option Agreement, and Herewith makes
payment of the exercise price in full in cash or immediately available fund or
by delivery of shares already owned by the Optionee with a market value at least
equal to the aggregate exercise price due. Kindly issue all Shares to the
undersigned and deliver them to the undersigned at the address stated below. If
such number of Shares shall not be all of the Shares purchasable under the
within Option Agreement, please issue a new Option Agreement of like tenor for
the balance of the remaining Shares purchasable hereunder to be delivered to the
undersigned at the address stated below.

         By signing below, the Undersigned acknowledges that he has received
0uch financial and other information to his satisfaction regarding the Company
as he requires to make an informed investment decision. The Undersigned has had
the opportunity to ask questions and receive answers from the Company regarding
the Shares and the Company. The Undersigned further acknowledges that he is
aware that the Shares issued pursuant to this exercise may be restricted from
transfer.

                                       Name
                                            ------------------------------------
                                                         (Please Print)

                                       Address
                                               ---------------------------------

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

Dated
      --------------------

                                                                   Page 21 of 27
<PAGE>

                                    EXHIBIT C
                             STOCK OPTION AGREEMENT

         STOCK OPTION AGREEMENT as of March 1, 2000, by and between MegaMedia
Networks, Inc. (the "Company"), and Paul J. Turcotte, (the "Optionee").

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

         In consideration for the Optionee signing an Employment Agreement of
even date herewith (the "Employment Agreement") with the Company and for other
good and valuable consideration, receipt of which is hereby acknowledged, the
company hereby grants the Optionee the option to acquire shares or the common
stock of the Company upon the following terms and conditions:

1.       GRANT OF OPTION

         F.       The Company hereby grants to the Optionee the right and option
                  (the "Option") to purchase up to 177,778 fully paid and
                  non-assessable shares of Common Stock par value $.01 per share
                  of the Company (the "Shares"), subject to the vesting
                  provisions described below.

         G.       This Option shall vest in Executive on the earliest to occur
                  of the following:

                  (i)      On February 28, 2003, provided that Executive remains
                           employed by Company, a parent or subsidiary
                           corporation of Company; or

                  (ii)     Upon termination of Executive's employment by Company
                           without "Cause" as defined in paragraph 9D of the
                           Employment Agreement prior to February 28, 2003; or

                  (iii)    Upon Executive's voluntary termination of his
                           employment for "Constructive Discharge" as defined
                           paragraph 9C of the Employment Agreement, prior to
                           February 28, 20003; or

                  (iv)     A "change in control" of the Company, prior to
                           February 28, 2003. A "change in control" of the
                           Company shall be defined as (i) a sale, purchase,
                           merger or other business combination which results in
                           transfer to a third party of an ownership interest of
                           greater than 50% of the company or any successor
                           entity to the Company, (ii) a sale or other
                           disposition of all or substantially all of the
                           Company's assets, or (iii) election by the
                           shareholders of the Company of persons to serve as
                           directors of the Company, comprising more than
                           one-half (1/2) the total number of directors, persons
                           who were not nominated or recommended to the
                           shareholders for election as directors by the Board's
                           nominating committee.

         H.       The date on which the Option vest under this paragraph shall
                  be know as the "Vesting Date".

         I.       The Option once vested, may be exercised during the period
                  ("Option Period") commencing on the Vesting Date and expiring
                  at 5:00 p.m. Eastern Standard Time on the date that is exactly
                  ten (10) years after the Vesting Date. For example, if the
                  Vesting Date is February 28, 2003, the Option Period shall
                  expire at 5:00 p.m. on February 28, 2013. Upon expiration of
                  the Option Period the Optionee shall have no further right to
                  purchase any shares not then purchased. The Company shall at
                  all times during the Option Period have available such number
                  of Shares as will be sufficient to satisfy the Option.

                                                                   Page 22 of 27
<PAGE>

         J.       It is not intended that these Options qualify as Incentive
                  Stock Options within the meaning of Section 422A of the
                  Internal Revenue Code of 1986, as amended (the "Code").

2.       EXERCISE PRICE

         The exercise price of the Option (the "Exercise Price") shall be Three
         Dollars ($4.50) per Share, and shall be payable by certified or bank
         check payable to the order of the Company at the time of the exercise.
         As an alternative, Optionee may present Shares already owned by the
         Optionee with a market value at least equal to the aggregate Exercise
         Price of the Options which Optionee seeks to exercise.

3.       EXERCISE OF OPTION

         The Optionee may exercise this Option in whole or in part, by providing
         notice to the Company, in the form attached as Exhibit A, by registered
         or certified mail, return receipt requested, or by overnight mail or
         personal delivery, addressed to its principal office, signed by
         Optionee, indicating the number of Options which he desires to
         exercise. The notice shall be accompanied by payment of the Exercise
         Price as specified in Paragraph 2 above. As soon as practicable after
         the receipt of such notice of exercise, the Company shall cause the
         Company's transfer agent to issue to the Optionee certificates issued
         in the Optionee's name evidencing the Shares purchased by the Optionee.

4.       DEATH OF OPTIONEE

         In the event of the death of the Optionee, any unexercised portion of
         his Option shall be exercisable (to the extent that such Option was
         exercisable at the time of his death) for one hundred and twenty (120)
         days after the Optionee's death only by his personal representative or
         such persons to whom the deceased Optionee's rights shall pass under
         the Optionee's will or by the laws of descent and distribution.

5.       NON-TRANSFERABILITY OF OPTION

         The Optionee may not give, grant, sell exchange, transfer legal title,
         pledge, assign or otherwise encumber or dispose of the Option or any
         interest therein, otherwise than by will or the laws of descent and
         distribution and, except as provided in this paragraph and paragraph 4,
         the Option shall be exercisable only by the Optionee. Upon any attempt
         to so transfer the Option, or upon the levy or attachment or similar
         process of the Option, the Option shall automatically become null and
         void.

6.       RESTRICTION ON ISSUANCE OF SHARES - INVESTMENT REPRESENTATION

         By accepting the Option, the Optionee agrees for himself, his heirs and
         legatees that any and all Shares purchased upon the exercise of the
         Option shall be acquired for investment and not for distribution. All
         shares acquired by Executive under these provisions will be subject to
         statutory restrictions, registration and to such lockup agreements as
         Company may reasonably require of its executives. Upon the issuance of
         any or all of the Shares subject to the Option, the Company, in its
         discretion, may require the Optionee, or his heirs or legatees
         receiving such Shares to deliver to the company a representation in
         writing, in a form satisfactory to the Board of Directors, that such
         Shares are being acquired in good faith for investment and not for
         distribution. The Company may place a "stop transfer" order with
         respect to such Shares with its transfer agent and will place and
         appropriate restrictive legend on the certificate(s) evidencing such
         Shares. The Company agrees to register the Shares as part of any Form
         S-8 registration by the Company for so long as any Shares subject to
         Options remain outstanding.

                                                                   Page 23 of 27
<PAGE>

7.       ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

         C.       The Stock Option referenced herein shall not be subject to any
                  dilution as to percentage of ownership that may be from time
                  to time be appropriately approved und undertaken by the
                  company and that is applicable to all issued and outstanding
                  stock of the Company. In the event that the outstanding shares
                  are changed into or exchanged for a different number or kind
                  of shares or securities of the Company, or of any other
                  corporation, by reason of reorganization, merger, or other
                  subdivision, consolidation. Recapitalization,
                  reclassification, stock split, stock divided or combination of
                  shares or similar event, the Company shall make an appropriate
                  and equitable adjustment to the Stock Option or to the
                  Purchase Price so that Executive's Proportionate interest
                  shall be maintained as before the occurrence of such event to
                  the maximum extent possible.

         D.       Any adjustment in the number of Shares shall apply
                  proportionately to only the then unexercised portion of the
                  Option. If fractional Shares would result from any such
                  adjustment, the adjustment shall be revised to the next higher
                  whole number.

12.      NO RIGHTS AS STOCKHOLDER

         The Optionee shall have no rights as a stockholder in Shares as to
         which the Option has not been exercised.

13.      TAXES

         The Company may make such provisions as it may deem appropriate for the
         withholding of any taxes which it determines is required in connection
         with the exercise of the Option granted hereby. The Company may further
         require notification from the Optionee upon any disposition of Shares
         acquired pursuant to the exercise of the Options granted hereunder.

14.      BINDING EFFECT

         Except as herein otherwise expressly provided, this Agreement shall be
         binding upon and shall inure to the benefit of the parties hereto,
         their legal representatives and assigns.

15.      GOVERNING LAW

         This Agreement shall be governed by and construed in accordance with
         the laws of the State of Florida applicable to agreement made and to be
         performed wholly within the State of Florida

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
         date and year first above written.

------------------------------------        ------------------------------------
Witness:                                    MegaMedia Networks, Inc.
         ---------------------------        By William A. Mobley, Jr., President

------------------------------------        ------------------------------------
Witness:                                    Optionee:
         ---------------------------                 ---------------------------

                                                                   Page 24 of 27
<PAGE>

                                  EXERCISE FORM

(To be Executed If Optionee Desires to Exercise the Options)

TO:      MegaMedia Networks, Inc.

         The undersigned, being the Optionee of certain options ("Options") to
purchase shares of common stock of MegaMedia Networks, Inc. (the "Company" and
the "Shares"), under the conditions thereof, hereby exercises Options to
purchase _________ Shares evidenced by the within Option Agreement, and Herewith
makes payment of the exercise price in full in cash or immediately available
fund or by delivery of shares already owned by the Optionee with a market value
at least equal to the aggregate exercise price due. Kindly issue all Shares to
the undersigned and deliver them to the undersigned at the address stated below.
If such number of Shares shall not be all of the Shares purchasable under the
within Option Agreement, please issue a new Option Agreement of like tenor for
the balance of the remaining Shares purchasable hereunder to be delivered to the
undersigned at the address stated below.

         By signing below, the Undersigned acknowledges that he has received
such financial and other information to his satisfaction regarding the Company
as he requires to make an informed investment decision. The Undersigned has had
the opportunity to ask questions and receive answers from the Company regarding
the Shares and the Company. The Undersigned further acknowledges that he is
aware that the Shares issued pursuant to this exercise may be restricted from
transfer.

                                       Name
                                            ------------------------------------
                                                         (Please Print)

                                       Address
                                               ---------------------------------

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

Dated
      --------------------

                                                                   Page 25 of 27
<PAGE>

                                   STOCK POWER
                                  ATTACHMENT A

For full and adequate consideration received, Paul J. Turcotte, hereby sells,
assigns, and transfers to MEGAMEDIA NETWORKS, INC., Two Hundred Thousand
(200,000) shares of legend restricted common stock of MegaMedia Networks, Inc.,
now registered in the name of Paul J. Turcotte, on the books of the Corporation,
Certificate # and hereby irrevocably constitutes and appoints Atlas Stock
Transfer Company, or its successors, agent and attorney to transfer the
aforesaid stock on the books of the Corporation, with full power of substitution
in the premises.

Dated:                     .
      ---------------------

--------------------------------
Paul J. Turcotte

--------------------------------
SIGNATURE MEDALLION GUARANTEED

                                                                   Page 26 of 27
<PAGE>

                             DESCRIPTION OF BUSINESS
                                    EXHIBIT E

MegaMedia Networks, Inc. is a global internet entertainment portal specializing
in commercial "on-demand" selection and delivery of high-quality programming
including, but not limited to: movies, music, television and sports. MegaMedia
Networks markets and distributes entertainment content to consumers on a per
view, subscription, membership, or free basis; builds one-to-one customer
intimacy marketing profiles to enhance revenues; offers targeted and general
merchandise, services and advertising to consumers; builds corporate
relationships in the form of sponsor and strategic alliance programs;

MegaMedia Networks engages in several critical areas of activity including:
content acquisition through purchase, partnerships, Licensing and production;
encoding of content into such form as may be transmitted through electronic of
wireless distribution networks; organization, development and presentation of a
compelling consumer-oriented site or sites incorporating marketing, advertising,
sales and merchandising targeted to individual and broad consumer preferences;
commercial fulfillment, packaging and shipping; and design, assemblage and
operation of technical hardware and software platforms suitable for the delivery
of all aspects of MegaMedia Networks content monetization program and consumer
monetization program briefly described above including hosting, serving and
distribution through global digital transmission networks.

-------------------------------             ------------------------------------
Executive - David A. Gust                   MegaMedia Networks, Inc.,
13543 Banana Bay Drive                      By William A. Mobley, Jr., President
Winter Garden, Florida 34787                57 West Pine Street
                                            Orlando, Florida 32801

                                                                   Page 27 of 27-

SUBSCRIPTION AGREEMENT MADE AND ENTERED INTO IN THE CITY AND DISTRICT OF
MONTREAL, ON THE 18TH DAY OF MAY, 2000

BY AND AMONG:                CAPITAL COMMUNICATIONS CDPQ INC., a

                             body politic duly incorporated
                             according to the Companies Act
                             (Quebec), having its head office
                             and principal place of business in
                             the City of Montreal, Province of
                             Quebec,

                             (hereinafter referred to as

                             ("CDPQ")

                             PARTY OF THE FIRST PART

AND:                         SOFINOV SOCIETE FINANCIERE
                             D'INNOVATION INC., a body politic,
                             duly incorporated according to the
                             Companies Act (Quebec), having its
                             head office and principal place of
                             business in the City of Montreal,

                             Province of Quebec,

                             (hereinafter referred to as
                             "Sofinov")

                             PARTY OF THE SECOND PART

AND:                         TOUCHTUNES MUSIC CORPORATION, a
                             body politic and corporate, duly
                             incorporated according to the laws

                             of the State of Nevada, having its
                             head office and principal place of
                             business in the City of Las Vegas,
                             State of Nevada,

                             (hereinafter referred to as the
                             "Corporation")

                             PARTY OF THE THIRD PART

1.    PREAMBLE

1.1   WHEREAS each of CDPQ and Sofinov wishes to subscribe for shares from the
treasury of the Corporation, the whole at the price and on the terms and
conditions hereinafter set out in this Agreement;

                                                                 2

1.2   WHEREAS CDPQ loaned to the Corporation the sum of US$1,000,000 on May 5,
2000, which sum the Corporation agreed to repay by applying same against a
portion of the total subscription price payable by CDPQ pursuant to this

Agreement; and

1.3   WHEREAS Sofinov loaned to the Corporation the sum of US$2,000,000 on
December 17, 2000, and the sum of US$1,000 000 on each of January 17, 2000,
February 1, 2000 and March 24, 2000, which sums the Corporation agreed to repay
by applying same against the total subscription price payable by Sofinov
pursuant to this Agreement.

NOW, THEREFORE, THIS AGREEMENT WITNESSETH:

2.    INTERPRETATION

2.1   Definitions.  In this Agreement:

2.1.1 "Agreement" means this Subscription Agreement and all instruments
      supplemental hereto or in amendment or confirmation hereof; "herein",
      "hereof", "hereto", "hereunder" and similar expressions mean and refer to
      this Agreement and not to any particular Section, subsection or other
      subdivision; "Section", "subsection" or other subdivision of this
      Agreement means and refers to the specified Section, subsection or other

      subdivision of this Agreement;

2.1.2 "Applicable Law" means any domestic or foreign federal, state,
      provincial, county, local, municipal and regional statute, law,
      ordinance, rule, regulation, restriction, regulatory policy or guideline,
      by-law (zoning or otherwise), principles of common law, civil law or
      equity, as well as Permits, Orders, decrees and rules (having the force
      of law); and any judgments or injunctions issued, prolongated, approved

      or entered thereunder;

2.1.3 "Articles of Incorporation" means the Second Amended and Restated
      Articles of Incorporation of the Corporation dated May 3, 2000;

2.1.4 "Assets" means all of the assets, rights and properties of the
      Corporation, of whatsoever nature, kind or description, including movable
      or immovable, real or personal, tangible or intangible;

2.1.5 "Balance Sheet Date" means March 31, 2000;

2.1.6 "Benefit Plans" means all pension, retirement, profit sharing, bonus,

      savings, compensation, incentive, severance, stock option, stock
      purchase, stock appreciation, group insurance, medical, dental,
      hospitalization, disability, death and other fringe benefit plans,
      programs, arrangements or practices, sponsored or maintained by and
      covering any or all past or present employees, shareholders, directors or
      officers of the Corporation;

2.1.7 "Books and Records" means all books of account, accounting records,
      files, data and writings and other financial information, lists and files
      of past, present and prospective clients and contacts, purchasing and

      marketing records, personnel and payroll records, and all data stored on
      computer support devices relating to any of the aforementioned materials;

2.1.8 "Business Day" means any day, other than a Saturday or Sunday or a day on
      which the principal commercial banks in the State of New York are not
      open for business during normal banking hours;

2.1.9 "Business Plan" means the business plan of the Corporation dated April
      2000, a copy of which has been delivered to the Investors,

2.1.10       "CDPQ Shares"  has the meaning described thereto in subsection 3.1;

2.1.11  "Common Shares" means shares of the Corporation's class A voting common
      stock having the rights privileges and preferences as set forth in the
      Articles of Incorporation;

2.1.12       "Contracts" means all agreements, obligations and undertakings of
      whatsoever nature, kind or description;

2.1.13       "Corporation SEC Documents" has the meaning ascribed thereto in
      subsection 4.3.9;

2.1.14       "dollar", "dollars" and the sign "$" each mean, unless otherwise
      indicated, lawful money of the United States of America;

2.1.15   "Encumbrances" means any encumbrance of any nature, kind or description
      whatever and includes a security interest, mortgage, lien, hypothecation,
      pledge, prior claim, assignment, charge, trust or deemed trust (whether
      contractual, statutory or howsoever otherwise arising), voting trust or
      pooling agreement with respect to securities, right of first refusal,

      easement, servitude, restrictive covenant, encroachment or other survey
      or title defect, any adverse claim or any other right, option or claim of
      any Person of any nature, kind or description whatever, or any covenant
      or other agreement, restriction or limitation on transferability;

2.1.16 "Environment" means surface waters, ground water, drinking water supply,
      land-surface, subsurface strata, air, both inside and outside of
      buildings and structures, and plant and animal life;

2.1.17 "Environmental Law" means any Applicable Law relating to the pollution or

      protection of the Environment;

2.1.18       "Equipment" means all furnishings, fixtures, machinery, equipment,
      tooling, spare parts, leasehold improvements, supplies, computer
      hardware, telephone systems, signs and all other tangible property,
      together with all related accessories and maintenance equipment;

2.1.19       "ERISA" has the meaning ascribed thereto in subsection 4.3.25.2;

2.1.20 "Exchange Act" means the Securities Exchange Act of 1934 (United States),
      as amended from time to time;

2.1.21       "Financial Statements" means:

      2.1.21.1  the consolidated audited financial statements of the Corporation
      for the fiscal year ended December 31, 1999 consisting of the balance
      sheet and the statement of income and retained earnings of the
      Corporation as at December 31, 1999, and

      2.1.21.2  the consolidated unaudited financial statements of the
      Corporation for the 3-month period ended March 31, 2000 consisting of the
      balance sheet, statement of income and retained earnings, statement of

      expenses and statement of changes in financial position of the
      Corporation as at March 31, 2000,

      a copy of both of which is annexed hereto as Schedule 2.1.21;

2.1.22       "Generally Accepted Accounting Principles" means generally accepted
      accounting principles in the United States of America applicable as at
      the date on which any calculation or determination is required to be made
      in accordance with generally accepted accounting principles, applied on a
      consistent basis;

2.1.23 "Governmental Body" means (i) any domestic or foreign national, federal,
      provincial, state, county, local, municipal or other government or body,
      (ii) any multinational, multilateral or international body, (iii) any
      subdivision, agent, commission, board, instrumentality or authority of
      any of the foregoing governments or bodies, (iv) any quasi-governmental
      or private body exercising any regulatory, expropriation or taxing
      authority under or for the account of any of the foregoing governments or

      bodies, or (v) any domestic, foreign, international, multilateral or
      multinational judicial, quasi-judicial, arbitration or administrative
      court, tribunal, commission, board or panel;

2.1.24       "including" and "includes" is to be deemed to be followed by the
      statement "without limitation" and neither of such terms shall be
      construed as limiting any word or statement which precedes it to the
      specific or similar items or matters immediately following it;

2.1.25       "Intellectual Property Rights" means, collectively:

      2.1.25.1  all intellectual property rights of whatsoever nature, kind or
      description including:

      2.1.25.1.1   all trade marks, service marks, trade mark and service mark
              registrations, trade mark and service mark applications, rights
              under registered user agreements, trade names and other trade
              mark and service mark rights,

      2.1.25.1.2   all copyrights, industrial designs and registrations thereof
              and applications therefor,

      2.1.25.1.3   all inventions, patents, patent applications and patent

              rights (including any patents issuing on such applications or
              rights),

      2.1.25.1.4   all licenses, sub-licenses and franchises,

      2.1.25.1.5   all trade secrets and proprietary and confidential
              information,

      2.1.25.1.6   all computer software and rights related thereto,

      2.1.25.1.7   all renewals, modifications, developments and extensions of

              any of the items listed in subsections 2.1.25.1.1 through
              2.1.25.1.6 (inclusively) hereof; and

      2.1.25.2  all patterns, plans, designs, research data, other proprietary
      know-how, processes, drawings, technology, inventions, formulae,
      specifications, performance data, quality control information, unpatented
      blue prints, flow sheets, equipment and parts lists, instructions,
      manuals, records and procedures, and all licenses, agreements and other
      contracts and commitments relating to any of the foregoing;

2.1.26 "Investors" means CDPQ and Sofinov, collectively, and "Investor" means
      either of them;

2.1.27 "Knowledge" - an individual will be deemed to have "Knowledge" of a
      particular fact or other matter if:

      2.1.27.1  such individual is actually aware of such fact or other matter,
      or

      2.1.27.2  a prudent individual could be expected to discover or otherwise

      become aware in a reasonable period of time of such fact or other matter
      in the course of conducting a reasonable investigation concerning the
      existence of such fact or other matter.

      A Person (other than an individual) will be deemed to have "Knowledge" of
      a particular fact or other matter if any individual who is serving, or
      who has at any time served, as a director, officer, partner, executor, or
      trustee of such Person (or in any similar capacity) has, or at any time
      had, Knowledge of such fact or other matter;

2.1.28  "Order" means any order (draft or otherwise), judgment, injunction,
      decree, award or writ of any Governmental Body;

2.1.29  "ordinary course of business" means an action taken by a Person that is
      consistent with the past practices of such Person and is taken in the
      ordinary course of the normal day-to-day operations of such Person;

2.1.30 "Permit" means any license, permit, certificate, authorization, approval,
      right, privilege, consent, concession or franchise issued, granted,
      conferred or otherwise created by a Governmental Body;

2.1.31  "Person" means an individual, corporation, company, cooperative,
      partnership, trust, unincorporated association, entity with judicial
      personality, Governmental Body; and pronouns when they refer to a Person
      have a similarly extended meaning;

2.1.32  "Premises" means the real property, together with all buildings,
      structures, fixtures and improvements thereon, covered by the Real
      Property Leases;

2.1.33 "Prime Rate" means the interest rate quoted publicly by the Corporation's
      regular bankers as the reference rate of interest for commercial demand
      loans made in US dollars and commonly known as such bank's prime rate, as
      adjusted from time to time, on the basis of the Prime Rate in effect on
      the first day of each month;

2.1.34  "Purchased Securities" means the CDPQ Shares and the Sofinov Shares;

2.1.35  "Real Property Leases" means the lease agreements listed in Schedule
      2.1.35 annexed hereto covering, collectively, the Premises;

2.1.36  "Registration Rights Agreement" means the registration rights agreement
      entered into on the date hereof among CDPQ, Sofinov, SociEtE Innovatech
      du Grand MontrEal and the Corporation;

2.1.37  "Registrable Shares" means all Common Shares issuable to the Investors
      upon the conversion of the Purchased Securities;

2.1.38  "SEC" means the United States Securities and Exchange Commission;

2.1.39  "Securities Act" means the Securities Act of 1933, as amended;

2.1.40  "Series B Preferred Shares" means the shares of Series B Preferred Stock
      as described in the Articles of Incorporation;

2.1.41  "Shareholders Agreement" means the Voting Trust and Limited Shareholders
      Agreement entered into on the date hereof among the Corporation, the
      Investors, SociEtE Innovatech du Grand MontrEal and Techno ExprEs S.A.;

2.1.42  "Sofinov Shares" has the meaning ascribed thereto in subsection 3.4;

2.1.43  "Tax Returns" means all reports, returns or other information, or any
      amendment thereof, required to be filed in connection with any Taxes;

2.1.44  "Taxes" means all taxes, foreign or domestic, whether federal, state,
      provincial, county, local, municipal or otherwise (including income,
      profit, corporation, business, excise, sales, goods and services, value-
      added, franchise, withholding, capital, transfer, stamp, unemployment

      compensation, payroll, property, and duties), whether or not measured in
      whole or in part by net income, and including interest and penalties with
      respect thereto;

2.1.45       "TouchTunes" means TouchTunes Digital Jukebox Inc.

2.2   Gender.  Any reference in this Agreement to any gender shall include both
genders and the neutral, and words used herein importing the singular number
only shall include the plural and vice versa.

2.3   Headings.  The division of this Agreement into Sections, subsections and
other subdivisions, and the insertion of headings are for convenience of
reference only and shall not affect or be utilized in the construction or

interpretation of this Agreement.

2.4   Severability.  Any Section, subsection or other subdivision of this
Agreement or any other provision of this Agreement which is, or becomes,
illegal, invalid or unenforceable shall be severed therefrom and shall be
ineffective to the extent of such illegality, invalidity or unenforceability
and shall not affect or impair the remaining provisions hereof, which
provisions shall be severed from an illegal or unenforceable Section,
subsection or other subdivision of this Agreement or any other provisions of

this Agreement.

2.5   Entire Agreement.  This Agreement together with any other instruments to
be delivered pursuant hereto, constitute the entire agreement among the parties
pertaining to the subject matter hereof and supersede all prior agreements,
understandings, negotiations and discussions, whether oral or written, among
any or all of the parties.

2.6   Amendments.  No amendment of this Agreement shall be binding unless

otherwise expressly provided in an instrument duly executed by each of the
parties hereto.

2.7   Waiver.  Except as otherwise provided in this Agreement, no waiver of any
of the provisions of this Agreement shall be deemed to constitute a waiver of
any other provisions (whether or not similar), nor shall such waiver constitute
a continuing waiver unless otherwise expressly provided in an instrument duly
executed by the parties.

2.8   Delays.  When calculating the period of time within which or following

which any act is to be done or step taken pursuant to this Agreement, the day
which is the reference day in calculating such period shall be excluded. If the
day on which such delay expires is not a Business Day, then the delay shall be
extended to the next succeeding Business Day.

2.9   Preamble.  The preamble hereof shall form an integral part of this
Agreement.

2.10  Governing Law.  This Agreement shall be governed in all respects by the
laws of the State of New York as they are applied to agreements entered into in
New York between New York residents and performed entirely within New York.

2.11  Currency.  Unless otherwise specified, all statements of or references to
dollar amounts in this Agreement are of or to the lawful currency of the United
States of America.

2.12  Schedules.  The following Schedules form an integral part of this
Agreement and are incorporated hereby by this reference:

     Schedule 2.1.21        Financial Statements
     Schedule 2.1.35        Real Property Leases

     Schedule 4.3.3         Jurisdictions
     Schedule 4.3.4         Constating documents
     Schedule 4.3.8         Issued Shares
     Schedule 4.3.14.3      Stock Option Plan
     Schedule 4.3.15        Encumbrances
     Schedule 4.3.18        Litigation
     Schedule 4.3.19        Insurance
     Schedule 4.3.24        List of employees

     Schedule 4.3.24.5      Employment agreements providing a notice
                            of termination
     Schedule 4.3.25        Benefit Plans
     Schedule 4.3.26        List of Contracts
     Schedule 4.3.27        Intellectual Property
     Schedule 4.3.32.5      Tax Audits
     Schedule 4.3.33        Accounts receivable and payable

     Schedule 7.1           Budget

3.    SUBSCRIPTIONS FOR SHARES

3.1   CDPQ Subscription.  Subject to the terms and conditions of this Agreement
and in reliance upon the representations, warranties, covenants, agreements and
obligations of the Corporation contained herein, CDPQ hereby subscribes for
6,666,667 Series B Preferred Shares (collectively the "CDPQ Shares") of the
Corporation's share capital at the aggregate subscription price of

US$15,000,000.  The Corporation hereby accepts the subscription of CDPQ for the
CDPQ Shares.

3.2   Payment and Issue of CDPQ Shares. CDPQ hereby agrees to remit to the
Corporation on the date hereof the aggregate subscription price set forth in
subsection 3.1 payable as to (i) US$14,000,000 by cheque and (ii) US$1,000,000
by CDPQ agreeing to extinguish the indebtedness of the Corporation to CDPQ in
the like amount, and the Corporation shall issue the CDPQ Shares to CDPQ as
fully paid and non-assessable Series B Preferred Shares and deliver share

certificate representing same.

3.3   Sofinov Subscription.  Subject to the terms and conditions of this
Agreement and in reliance upon the representations, warranties, covenants,

agreements and obligations of the Corporation contained herein, Sofinov hereby
subscribes for 2,222,222 Series B Preferred Shares (collectively the "Sofinov
Shares") of the Corporation's share capital at the aggregate subscription price

of US$5,000,000.  The Corporation hereby accepts the subscription of Sofinov
for the Sofinov Shares.

3.4   Payment and Issue of Sofinov Shares.  Sofinov hereby agrees to remit to
the Corporation on the date hereof the aggregate subscription price set forth
in subsection 3.3 entirely payable by Sofinov agreeing to extinguish the
indebtedness of the Corporation to Sofinov in the amount of US$5,000,000, and
the Corporation shall issue the Sofinov Shares to Sofinov as fully paid and

non-assessable Series B Preferred Shares and deliver share certificate
representing same.

4.    REPRESENTATIONS, WARRANTIES AND ACKNOWLEDGEMENTS

4.1   Representations  and Warranties of the Investors.  Each Investor (with
respect to itself, and not with respect to the other Investor) hereby
represents and warrants, severally and not jointly, to the Corporation and to
the other Investor, and acknowledges and confirms that the Corporation and the
other Investor are relying upon such representations and warranties in

connection herewith and would not have entered into this Agreement without such
representations and warranties:

4.1.1 Corporate Organization.  Such Investor is duly incorporated and
      constituted, validly existing and in good standing under the laws of its
      jurisdiction of incorporation;

4.1.2 Power and Authority.  Such Investor has the necessary corporate power and
      authority to execute this Agreement and to perform its obligations

      hereunder.  The execution of this Agreement by such Investor and the
      performance by such Investor of its obligations hereunder have been duly
      authorized by all necessary action on its part and do not require any
      action or consent of, any registration with, or notification to any
      Person, or any action or consent under any laws of the Province of Quebec
      and the laws to which such Investor is subject;

4.1.3 Validity.  The execution of this Agreement, the consummation of the
      transactions contemplated herein, the performance by such Investor of its

      obligations hereunder and the compliance by it with this Agreement do
      not:

      4.1.3.1 violate, contravene or breach, or constitute a default under, the
      constating documents, law or by-laws of such Investor;

      4.1.3.2 violate, contravene or breach, or constitute a default under any
      Contract to which such Investor may be a party, or its properties may be
      subject, or by which it is bound or affected; or

      4.1.3.3 violate, contravene or breach any laws to which such Investor is

      subject;

4.1.4 Investment.  Such Investor is acquiring the Purchased Securities as
      provided in this Agreement and the Common Shares issuable upon the
      conversion of such Purchased Securities for investment for its own

      account,  for the account of the other Investor or for the account of its
      affiliates, and not with the view to, or for resale in connection with,
      any distribution thereof other than to the other Investor or its
      affiliates;

4.1.5 Brokers or Finders.  The Corporation has not incurred and will not incur,
      directly or indirectly, as a result of any action taken by it any
      brokerage fees, finder's fees, agents' commissions or other similar

      charges in connection with this Agreement, other than the commitment fees
      payable by the Corporation to CDPQ.

4.2   Acknowledgements.  Each Investor hereby makes the following
acknowledgements:

4.2.1 Registration.  It understands that the right to acquire the Purchased
      Securities as provided in this Agreement and the Common Shares issuable
      upon the conversion of such Purchased Securities has not been, and will
      not be, registered under the Securities Act or applicable state

      securities laws, and is being extended to the Investors pursuant to a
      specific exemption from the registration provisions of the Securities Act
      and such laws, the availability of which depends upon, among other
      things, the bona fide nature of the investment intent and the accuracy of
      its representations as expressed in subsection 4.1.4;

4.2.2 Non-transferability.  Subject to the Corporation's undertakings pursuant
      to the Registration Right Agreement, it acknowledges that any resale of

      any of the Purchased Securities and the Common Shares issuable upon the
      conversion of such Purchased Securities may be subject to restrictions
      under applicable securities laws unless a subsequent disposition thereof
      is registered under the Securities Act or exempt from such registration;

4.2.3 Accredited Investor.  Such Investor is an "accredited investor" within
      the meaning of Rule 501 under the Securities Act.

4.3   Representations and Warranties of the Corporation.  The Corporation
hereby represents and warrants as follows to each of the Investors and

acknowledges and confirms that the Investors are relying upon such
representations and warranties in connection herewith and would not have
entered into this Agreement without such representations and warranties:

4.3.1 Securities Act Representation.  The offer, issuance and sale of the
      Purchased Securities hereunder is exempt from the registration and
      prospectus delivery requirements of the Securities Act;

4.3.2 "Blue Sky" Law Compliance.  The Corporation has made all filings and
      taken all actions necessary to comply with all "blue sky" laws with

      regard to the sale of the Purchased Securities as contemplated by this
      Agreement;

4.3.3 Corporate Organization and Authority.  The Corporation is duly
      incorporated and organized, validly existing, and in good standing under
      the laws of its jurisdiction of incorporation.  The Corporation has all

      the requisite power and authority to own, lease and operate its
      properties and carry on its business as presently conducted.  Neither the
      nature of its business nor the location or character of any of its Assets
      requires the Corporation to be registered, licensed or otherwise
      qualified as an out of state or foreign corporation or to be in good
      standing in any jurisdiction other than jurisdictions where it is duly
      registered, licensed or otherwise qualified and in good standing for such

      purpose being the jurisdictions described in Schedule 4.3.3 annexed
      hereto.  The Corporation has all requisite legal and corporate power and
      authority to execute and deliver this Agreement and to carry out and
      perform its obligations under the terms of this Agreement. Without
      limiting the generality of the foregoing, all corporate action on the
      part of the Corporation, its directors and shareholders necessary (i) for
      the authorization, execution, delivery and performance of this Agreement
      by the Corporation and (ii) for the authorization, issuance and delivery

      of the Common Shares issuable upon the conversion of such Purchased
      Securities. The execution and delivery of this Agreement and the
      performance of the transactions contemplated hereby will not, with or
      without the giving of notice and/or the passage of time, or both (i)
      violate any provision of law applicable to the Corporation, or require
      any consent, approval or authorization of, or any declaration, filing or
      registration with or notice to, any third party, Governmental Body or

      otherwise, (ii) result in the loss of any right under or conflict with or
      result in a default of any provision or termination of or accelerate the
      date of performance of any obligation under any agreement, obligation or
      undertaking to which the Corporation may be a party or by which the
      Corporation or any of its Assets may be bound, or (iii) conflict with or
      result in a default of any provision or termination of any of the
      constating documents or by-laws of the Corporation.  This Agreement
      constitutes a valid and binding obligation of the Corporation enforceable

      against it in accordance with its terms;

4.3.4 Constating and Corporate Documents.  Schedule 4.3.4 annexed hereto
      contains a true and complete copy of the constating documents of the
      Corporation including the authorized capital stock of the Corporation,
      which have not been amended other than as reflected in said Schedule, and
      there is no application pending for the amendment of any of same.  The
      minute books and corporate records of the Corporation have been
      maintained in accordance with the Applicable Law and contain true and

      complete records of all the by-laws of the Corporation and all meetings
      and consents in lieu of meetings of the board of directors of the
      Corporation and its shareholders, and accurately and completely reflect
      all matters referred to in such minutes and consents.  All resolutions
      contained in such records have been duly passed and all such meetings
      have been duly called and held.  The share certificate books and the
      registers of shareholders, directors and transfers of the Corporation are

      complete and accurate;

4.3.5 Offering Valid.  Assuming the accuracy of the representations and
      warranties of the Investors contained in subsection 4.1 hereof, the
      offer, sale and issuance of the Purchased Securities pursuant to this

      Agreement and the Common Shares issuable upon the conversion of such
      Purchased Securities is or will be exempt from the registration
      requirements of the Securities Act and all state "blue sky" laws or has
      been or will have been registered or qualified under the registration,
      permit or qualification requirements of all applicable federal and state
      securities laws;

4.3.6 Reservation of Stock.  The Corporation has reserved up to 8,888,889

      Common Shares issuable upon the conversion of the Purchased Securities.
      The number of Common Shares to be reserved for issuance shall be adjusted
      in accordance with the Articles of Incorporation;

4.3.7 Issuance of Purchased Securities and Common Shares.  The issuance of
      Purchased Securities pursuant to this Agreement and the issuance of
      Common Shares issuable upon the conversion of such Purchased Securities
      is and will not be subject to any preemptive rights or rights of first
      refusal. When issued in compliance with the provisions of the Agreement

      and the Articles of Incorporation, the Purchased Securities and Common
      Shares issuable upon the conversion of such Purchased Securities will be
      validly issued, fully paid and non-assessable, and will be free of all
      Encumbrances and restrictions on transfer other than restrictions on
      transfer provided in the Shareholders Agreement and under the state
      and/or federal securities laws at the time a transfer by an Investor is
      proposed;

4.3.8 Issued Shares.  After giving effect to this Agreement, the only issued
      and outstanding shares in the capital stock of the Corporation (and
      rights, options and warrants to acquire same) are as set out in Schedule
      4.3.8 annexed hereto.  All such shares are validly issued, fully paid and
      non-assessable, there are no other outstanding shares, warrants, rights,
      options, securities convertible into shares of the capital stock of the
      Corporation or any other agreements or rights to purchase or subscribe
      for any shares of the capital stock of the Corporation or convert any

      obligation or shares into any shares of the capital stock of the
      Corporation and the Corporation has not agreed to issue or sell any
      shares of its capital stock or any securities of any kind except as set
      out in this Agreement;

4.3.9 Public Filings.  The Corporation has delivered to the Investors accurate
      and complete copies (excluding copies of exhibits) of each report,
      registration statement (on a form other than Form S-8) and definitive
      proxy statement filed by the Corporation with the SEC from March 1995

      until the date hereof (the "Corporation SEC Documents"). As of the time
      it was filed with the SEC (or, if amended or superseded by a filing prior
      to the date of this Agreement, then on the date of such filing): (i) each
      of the Corporation SEC Documents complied in all material respects with
      the applicable requirements of the Securities Act or the Exchange Act, as

      the case may be; and (ii) none of the Corporation SEC Documents contained
      any untrue statement of a material fact or omitted to state a material
      fact required to be stated therein or necessary in order to make the

      statements therein, in the light of the circumstances under which they
      were made, not misleading;

4.3.10 Subsidiaries.  Except for TouchTunes, the Corporation has no subsidiary
      nor owns any equity or other interest in any corporation, partnership,
      joint venture or other entity;

4.3.11 Power and Authority.  The Corporation has the requisite corporate power,
      authority and capacity to carry on its business and to own and operate

      its Assets.

4.3.12      Financial Statements.

      4.3.12.1  The Financial Statements have been prepared in accordance with
      Generally Accepted Accounting Principles and present fairly the financial
      position and the results of the operations of the Corporation, as at the
      dates thereof and for the periods covered thereby.  No information has
      become available to the Corporation that would render the Financial
      Statements incomplete or inaccurate;

      4.3.12.2  As for the financial statements contained in the Corporation SEC
      Documents, they: (i) complied as to form in all material respects with
      the published rules and regulations of the SEC applicable thereto; (ii)
      were prepared in accordance with Generally Accepted Accounting Principles
      applied on a consistent basis throughout the periods covered, except as
      may be indicated in the notes to such financial statements and (in the
      case of unaudited statements) as permitted by Form 10-Q of the SEC, and

      except that unaudited financial statements may not contain footnotes and
      are subject to normal and recurring year-end audit adjustments (which
      will not, individually or in the aggregate, be material in magnitude);
      and (iii) fairly present the financial position of the Corporation as of
      the respective dates thereof and the results of operations of the
      Corporation for the periods covered thereby;

4.3.13  Undisclosed Liabilities of the Corporation.  The Corporation has no
      liabilities (whether accrued, absolute, contingent or otherwise) of any

      kind except liabilities disclosed or provided for in the Financial
      Statements and liabilities incurred in the ordinary course of business
      since the Balance Sheet Date which are not, in the aggregate, material
      and adverse to its business, or to its financial condition or results of
      operations and do not constitute a violation, contravention or breach of
      any covenant, agreement or obligation contained in this Agreement or
      constitute a breach of any representation or warranty made in or pursuant
      to this Agreement;

4.3.14 Subsequent Activities of the Corporation.  Since the Balance Sheet Date
      there has not occurred any change in the condition, financial or
      otherwise, or prospects of the Corporation other than changes occurring

      in the ordinary course of business which changes, individually or in the
      aggregate, have not materially adversely affected its business, financial
      condition, results of operations or prospects; without limiting the

      generality of the foregoing, since the Balance Sheet Date, the
      Corporation has not, directly or indirectly:

      4.3.14.1 declared or paid any dividend on its capital stock or redeemed,
      purchased or otherwise acquired any shares of its capital stock, or
      otherwise reduced its paid up capital or altered its capital stock,
      except as set forth in the Articles of Incorporation,

      4.3.14.2  entered into any Contract outside the ordinary course of
      business,

      4.3.14.3  increased the salary, benefits, bonuses or other compensation of
      its officers, directors or employees or adopted any Benefit Plan outside
      the ordinary course of business and other than as disclosed in the
      Financial Statements, except for the incentive stock option plan approved
      by resolutions of the board of directors of the Corporation dated April
      19, 2000, a copy of such resolutions and stock option plan are annexed
      hereto as Schedule 4.3.14.3;

      4.3.14.4  sold, leased, mortgaged, hypothecated, pledged or otherwise
      subjected any of its Assets to any Encumbrance other than Encumbrances
      taken in the ordinary course of business,

      4.3.14.5  settled any liability, claim, dispute, proceedings, suit or
      appeal pending against it or any of its Assets,

      4.3.14.6  except as disclosed in the Financial Statements, suffered any
      extraordinary loss or loss from operations,

      4.3.14.7 purchased or leased, or made any commitment to purchase or lease,
      any Assets, except for purchases of Equipment and supplies in the
      ordinary course of business,

      4.3.14.8 made any change in personnel practices, except in the ordinary
      course of business,

      4.3.14.9 cancelled or released any debts or claims other than as disclosed
      in the Financial Statements,

      4.3.14.10 made any change in its accounting principles, policies or

      practices as heretofore applied, including the basis upon which its
      assets and liabilities are recorded on its books, its earnings are
      ascertained or the methods or rates of depreciation or amortization
      employed, other than as disclosed in the Financial Statements, or

      4.3.14.11    agreed to do any of the things described in subsections
      4.3.14.1 through 4.3.14.10, inclusively, hereof;

4.3.15  Title to Assets.  The Corporation is the legal and beneficial owner of,
      has good and marketable title to and possesses all its Assets free and
      clear of any Encumbrances save as to those mentioned in the Financial

      Statements and in Schedule 4.3.15 annexed hereto;

4.3.16   Equipment.  The Corporation owns or leases all Equipment necessary to
      conduct its business as presently conducted;

4.3.17   Assets and Conditions of Assets.  All the Assets owned or used by the
      Corporation are located at the Premises.  All of the Assets of the
      Corporation (i) are in good working order and operating condition and
      have been regularly serviced and properly maintained and (ii) are

      adequate and sufficient for the continuing conduct of the business of the
      Corporation as now conducted.  To the Knowledge of the Corporation, there
      are no outstanding work orders relating to any of the Assets of the
      Corporation which have been received from or required by any Governmental
      Body;

4.3.18  Litigation.  There is no existing or, to the Knowledge of the
      Corporation, threatened claim, demand, suit, action, cause of action,
      dispute, proceeding, litigation, investigation, grievance, arbitration,

      governmental proceeding or other proceeding, including appeals and
      applications for review, in progress against, by, affecting or relating
      to the Corporation and/or any of its Assets except for the claims
      described in Schedule 4.3.18 annexed hereto. To the Knowledge of the
      Corporation, there is no state of facts which could provide a valid basis
      for any of the foregoing. To the Knowledge of the Corporation, there is
      not at present outstanding against, affecting or relating to the

      Corporation and/or its Assets any Order which adversely affects the
      Corporation in any way or that in any way relates to this Agreement or
      the transactions contemplated hereby;

4.3.19 Insurance.  Schedule 4.3.19 annexed hereto contains a true and complete
      list of each material insurance policy currently maintained by the
      Corporation. All such policies are in full force and effect and are not
      void or voidable and nothing has been done or omitted to be done by the
      Corporation that would make any such policy void or voidable. All
      liability policies maintained by the Corporation provide coverage on a
      claims basis, except for commercial liability insurance which provides
      for coverage on an occurrence basis. The Corporation has not failed to
      give any notice or present any claim under any insurance policy when due
      or in a timely fashion. No claim presented by the Corporation has been or
      continues to be disputed or is under negotiation, nor does any amount
      recoverable from any insurer in respect of any such claim remain unpaid.
      The insurance coverage maintained by the Corporation is in such amounts
      and against such losses as are reasonable based on the Corporation's
      claims history;

4.3.20  Real Property Leases and Premises.  The Real Property Leases, are the
      only leases, offers to lease, subleases, licenses or other agreements

      under which the Corporation uses or occupies or has the right to use or
      occupy, now or in the future, any immovable or real property or any
      buildings, structures, fixtures or improvements thereon;

4.3.21 Place of Business.  The Corporation carries on business at the Premises
      and has no other place of business;

4.3.22 Environmental Matters.  Without limiting the generality of
      subsection 4.3.18 or 4.3.29 hereof:

      4.3.22.1  to the Knowledge of the Corporation, the operations of, and the
      use of the Premises and Equipment by the Corporation are now and have
      been in compliance, in all material respects, with Environmental Law, and

      the operations of and use of the Premises by any predecessor in interest
      of the Corporation or any present or prior owner, lessee or occupant of
      the Premises have, to the Knowledge of the Corporation, been in
      compliance, in all material respects, with Environmental Law, and

      4.3.22.2 the Corporation has obtained and holds all Permits required under
      Environmental Law for the conduct of its operations and all such Permits
      are valid and in full force and effect. The Corporation has not received
      any notice amending, revoking or replacing any such Permits or requiring
      the issuance of any additional Permits. The Corporation has filed in a
      timely manner all reports, notifications and plans required pursuant to
      any such Permits;

4.3.23 Books and Records.  The Books and Records of the Corporation are true and
      complete in all material respects;

4.3.24 Employees and Labour Relations.  Schedule 4.3.24 annexed hereto contains
      a true and complete list of the employees of the Corporation detailing
      dates of hire, base remuneration and position held. Each of the employees
      listed on Schedule 4.3.24 annexed hereto received compensation from the
      Corporation solely in consideration of services performed on its behalf.
      The compensation of all officers and employees of the Corporation was
      paid entirely by the Corporation,

      4.3.24.1  at the date hereof, the Corporation has not been informed that
      any of its officers, directors or other key employees has any present
      intention to terminate its relationship with the Corporation,

      4.3.24.2  without limiting the generality of subsection 4.3.29 hereof, the
      Corporation is, in all material respects, in compliance with Applicable
      Law respecting employment and employment practices, terms and conditions
      of employment, wages, hours of work and human and civil rights,

      4.3.24.3  without limiting the generality of subsection 4.3.26 hereof, the
      Corporation is not bound by or subject to any collective bargaining
      agreement or collective bargaining obligation (or any ongoing organizing
      activity),

      4.3.24.4  without limiting the generality of subsection 4.3.18 hereof,
      there are no labour disruptions pending or, to the Knowledge of the
      Corporation, threatened against the Corporation and the Corporation is

      not involved in any material controversy with any of its employees except
      in the ordinary course of business, and

      4.3.24.5  except as set forth in Schedule 4.3.24.5 annexed hereto, no
      employment agreement to which the Corporation is a party provides for a
      specified notice of termination or fixed term of employment. There is no
      director, officer or employee of the Corporation who cannot be dismissed
      upon such notice as is required by Applicable Law;

4.3.25       Benefit Plans.  Schedule 4.3.25 annexed hereto contains a true and
      complete list of all Benefit Plans.

      4.3.25.1  without limiting the generality of subsection 4.3.29 hereof, all
      Benefit Plans which are funded plans are funded in accordance with their
      rules and Applicable Law and are fully funded on both a going-concern and
      a termination basis. Without limiting the generality of subsection 4.3.29
      hereof, all required employer contributions, premium payments and source-
      deducted employee contributions under the Benefit Plans have been made
      and remitted to the funding agents thereunder, including all current
      service costs and special payments,

      4.3.25.2 the Corporation has not at any time contributed to (or been
      obligated to contribute to) any plan subject to Title IV or Part I of
      Title I of the United States Employee Retirement Income Security Act,
      1974, as amended ("ERISA"), save as to those described in Schedule
      4.3.25. The Corporation is in compliance with ERISA, the United States

      Internal Revenue Code of 1986, as amended, and the regulations
      thereunder.  Without limiting the generality of subsection 4.3.29, each
      of the Corporation's Benefit Plans listed in such Schedule 4.3.25 has
      been maintained in compliance with its terms and all requirements
      prescribed by Applicable Law, are in good standing under all Applicable
      Law, and without limiting the generality of subsection 4.3.26 hereof,
      there are no outstanding defaults or violations by the Corporation of any
      obligation required to be performed by it in connection with any Benefit

      Plan of the Corporation,

      4.3.25.3 no step has been taken to terminate any Benefit Plan, and

      4.3.25.4 no promises or commitments have been made by the Corporation to
      amend any Benefit Plan or to provide increased benefits thereunder or to
      establish any additional Benefit Plan;

4.3.26 Contracts.  Schedule 4.3.26 annexed hereto contains a true and complete
      list of all material Contracts to which the Corporation is a party or by
      which it or its Assets may be bound, and none of them will be affected by

      the transactions contemplated hereby. The Corporation is not in violation
      of or in default with respect to and no event has occurred which, with
      lapse of time or action by a third party, or both, could result in

      violation of or a default with respect to any of the Contracts listed in
      Schedule 4.3.26 annexed hereto. Each of the Contracts listed in Schedule
      4.3.26 annexed hereto is in full force and effect and valid, binding and

      enforceable in accordance with its terms and, to the Knowledge of the
      Corporation, all parties to such Contracts (other than the Corporation)
      are in compliance with their obligations thereunder. Neither of the
      Corporation and, to the Knowledge of the Corporation, none of the parties
      to the Contracts listed in Schedule 4.3.26 annexed hereto (other than the
      Corporation) intends to terminate its obligations under any of such
      Contracts in the next twelve (12) months;

4.3.27  Intellectual Property.  Schedule 4.3.27 annexed hereto contains a true
      and complete list and copy of all Intellectual Property Rights used by
      the Corporation in the conduct of its business, none of which has been
      opposed or held unenforceable and each of which is in full force and
      effect. Except as set forth in Schedule 4.3.27 annexed hereto, the
      Corporation is the absolute owner and has the sole and exclusive right to
      use the Intellectual Property Rights listed beside its name on Schedule
      4.3.27 annexed hereto, without making any payment to any Person or
      granting rights to any Person in exchange. Unless otherwise indicated in
      Schedule 4.3.27, the Corporation owns the entire right, title and
      interest in and to the Intellectual Property Rights (including, without
      limitation, the right to use and license the same) which are necessary
      for the research, development, manufacture, use, sale, lease, license and
      service of products of the Corporation's business and the equipment used
      to manufacture the Corporation's products.  The Corporation's patents and
      trademarks, as listed and explained in Schedule 4.3.27, have been duly
      registered with, filed in or issued by, as the case may be, such
      Governmental Body as is indicated in Schedule 4.3.27 and, except as
      otherwise set forth on Schedule 4.3.27, such registrations, filing and
      issuances remain in full force and effect and such patents and trademarks
      cover the technology and equipment used to manufacture the Products.  The
      Intellectual Property Rights of the Corporation are sufficient for the
      lawful conduct, ownership and operation of the Corporation's business as
      presently conducted and enable the manufacturing of the Products and
      there are no Intellectual Property Rights of any Person which impair or
      prevent the development, manufacture, use, sale, lease, license and
      service of products, now existing or under development by the
      Corporation.  The Corporation has the unabridged right to bring actions
      for the infringement of all of its Intellectual Property Rights,

      4.3.27.1  without limiting the generality of subsection 4.3.3 hereof, the
      execution, delivery and performance of the Agreement and the consummation
      of the transactions contemplated thereby will not breach, violate or
      conflict with any instrument or agreement governing any of the
      Corporation's Intellectual Property Rights, and will not cause the
      forfeiture or termination or give rise to a right of forfeiture or
      termination of the Corporation's Intellectual Property Rights or in any
      way impair the right of the Corporation to use, sell, license or dispose

      of or to bring any action for the infringement of any of the
      Corporation's Intellectual Property Rights or portion thereof,

      4.3.27.2  all employees of, and consultants to, the Corporation have
      entered into agreements with the Corporation pursuant to which all
      Intellectual Property Rights developed by them in the course of their
      relationship with the Corporation belong solely, without any restrictions
      or obligations whatsoever, to the Corporation, and all such agreements
      are included in the Contracts. The Corporation has taken reasonable
      practical steps (including, without limitation, entering into
      confidentiality and non-disclosure agreements with all employees of the
      Corporation or consultants, third party developers or any other Persons
      with access to or knowledge of the Corporation's Intellectual Property
      Rights) sufficient to safeguard and maintain the secrecy and
      confidentiality of, and its proprietary rights in, all of the
      Corporation's Intellectual Property Rights,

      4.3.27.3 none of the development, manufacture, marketing, license, sale or
      use of any product or service currently licensed or sold by the
      Corporation or currently under development or proposed to be developed by
      the Corporation violates or will violate any Contract with any Person or
      infringe any Intellectual Property Rights of any Person.  There are no
      pending or, to the Knowledge of the Corporation, threatened proceedings,
      litigation or other adverse claims affecting, or with respect to, any
      part of the Intellectual Property Rights of the Corporation. Except as
      set forth in Schedule 4.3.27, to the Knowledge of the Corporation, no
      Person is infringing any Intellectual Property Right of the Corporation,

      4.3.27.4  except for the license granted to TouchTunes pursuant to that
      certain Research License Agreement dated January 1, 1998 between the
      Corporation and TouchTunes no license or sub-license has been granted or
      other Contract has been entered into with respect to any of the
      Intellectual Property Rights of the Corporation.  The Corporation has not
      conducted business under any name other than Technical Maintenance
      Corporation and its current corporate name;

4.3.28   Related Transactions.  Except for current unpaid salaries, the

      Corporation has no indebtedness to any of its shareholders, directors,
      officers or employees, past or present, or to any Person not dealing at
      arm's-length with any of such Persons and no shareholder, director,
      officer or employee, past or present, of the Corporation or any Person
      not dealing at arm's-length with any of such Persons has any indebtedness
      to the Corporation;

4.3.29  Compliance with Applicable Law.  The Corporation has conducted and is
      conducting its business, in all material respects, in compliance with

      Applicable Law, and the Corporation is not in breach of Applicable Law,
      including any securities law;

4.3.30 Qualifications.  The Corporation has not been required to suspend
      operations of its business or been liable for a fine or penalty as a
      result of the operation of its business. The Corporation has all Permits

      necessary for the conduct of its business as presently conducted and such
      Permits are validly issued, in full force and effect and the Corporation
      is, in all material respects, in compliance therewith, and none of such
      Permits will be affected by the transactions contemplated hereby;

4.3.31  Absence of Guarantees.  Without limiting the generality of subsection
      4.3.26 hereof and except for commitments disclosed in the Financial
      Statements, the Corporation is not a party to or bound by any comfort
      letter, understanding or agreement of guarantee, indemnification,
      assumption or endorsement or any like commitment with respect to the
      liabilities or obligations of any Person;

4.3.32  Tax Matters.  Tax Returns required by Applicable Law to be filed by, or
      with respect to the activities of the Corporation with applicable
      Governmental Bodies have been properly and timely filed with the
      appropriate Governmental Bodies and all such Tax Returns are true and
      complete and all Taxes shown to be due on such Tax Returns have been
      paid,

      4.3.32.1 with respect to the Corporation: i) there are no unpaid Taxes now
      due and no deficiency for Taxes has been assessed by any applicable
      Governmental Body, ii) no audit of any Tax Return is in progress or
      pending or threatened, and iii) no waiver of any statute of limitations
      has been given or is in effect with respect to the assessment of any
      Taxes,

      4.3.32.2  all Taxes shown on all Tax Returns for which the Corporation is
      liable have been paid or accrued and adequately reserved on its Books and
      Records and financial statements (including the Financial Statements) of
      the Corporation.  The Corporation is not taxed as an "S corporation"
      (within the meaning of Section 1361(a) of the United States Internal
      Revenue Code of 1986, as amended),

      4.3.32.3 none of the Tax Returns of the Corporation have ever been audited
      by any taxing Governmental Body at any time,

      4.3.32.4 the Corporation has never entered into any closing or similar
      agreement with any taxing Governmental Body,

      4.3.32.5 in each jurisdiction in which the Corporation is paying or has
      paid sales tax, sales tax audits have been conducted and completed
      through the years shown on Schedule 4.3.32.5 annexed thereto,

      4.3.32.6 the Corporation was not a member of an entity required to file a
      federal partnership Tax Return that is expected to have taxable income
      for any taxable period beginning prior to the date hereof that is in
      excess of cash distributions of such income to be made after the date
      hereof,

      4.3.32.7 the Corporation has not adopted a plan of complete liquidation
      and no consent has been filed on behalf of any of them pursuant to
      Section 341(f) of the United States Internal Revenue Code of 1986, as
      amended, or any predecessor provision,

      4.3.32.8 the Corporation has not taken any action not in the ordinary
      course of business that would have the effect of deferring any Tax
      liability from any taxable period ending prior to the date hereof,

      4.3.32.9 without limiting the generality of the foregoing, the Corporation
      has collected all sales, goods and services and use taxes required to be
      collected and has remitted same on a timely basis to the appropriate
      Governmental Body, or has been furnished properly completed exemption
      certificates for all exempt transactions. The Corporation has in its
      possession all Books and Records, including supporting documents,
      required by Applicable Law regarding the collection and payment of all
      sales, goods and services and use taxes required to be collected and paid
      over and regarding all exempt transactions for all periods open under the
      applicable statutes of limitations as of the date hereof, and the
      Corporation has maintained all such Books and Records, including
      supporting documents, in the manner required by applicable sales, goods
      and services and use tax statutes and regulations,

      4.3.32.10  the Corporation has withheld from each payment made to each
      of its past and present shareholders, agents, employees, officers and
      directors all deductions required to be made therefrom and has paid same
      to the proper Governmental Body;

4.3.33  Accounts Receivable and Payable.  Schedule 4.3.33 annexed hereto sets
      forth a true and complete (i) trade accounts receivable listing of the
      Corporation as of May 17, 2000 and (ii) accounts payable listing of the
      Corporation as of May 17, 2000.  The accounts receivable of the
      Corporation reflected on the Financial Statements and those created after
      the Balance Sheet Date, are genuine and bona fide receivables which arose
      in the ordinary course of business, and net of reserves (which reserves
      are adequate and determined in accordance with Generally Accepted
      Accounting Principles, consistently applied) are collectible, to the
      Knowledge of the Corporation, in full when due without any discount, set-
      off or counterclaim;

4.3.34  Accounts Receivable of the Corporation.  There exist no accounts
      receivable in respect of any fees described by Rule 12b-1 promulgated
      under the United States Investment Company Act of 1940, as amended;

4.3.35  No Broker.  Without limiting the generality of subsection 4.3.26 hereof,
      the Corporation has not employed any broker, finder, consultant or other
      intermediary in connection with any of the transactions contemplated by
      this Agreement and the Investors have not incurred and will not incur,
      directly or indirectly, as a result of any action taken by the
      Corporation any liability for any brokerage fees, finder's fees, or

      agents' commissions or other similar charges in connection with this
      Agreement;

5.    SURVIVAL OF REPRESENTATIONS AND WARRANTIES

5.1   Surivival.  Notwithstanding any investigation conducted prior or
subsequent to the date hereof, the parties shall be entitled to rely upon the
representations and warranties set forth herein and all representations and
warranties made by, and all covenants, obligations and agreements of, the
parties, under or pursuant to this Agreement or any other document or
certificate delivered in connection therewith shall survive for a period of
twenty-four (24) months from the date hereof.

6.    INDEMNIFICATION

6.1   Definitions.  As used in this Section 6:

6.1.1 "Claim" means any act, omission or state of facts and any demand, action,
      suit, proceeding, investigation, arbitration, trial, claim, assessment,
      judgment, settlement or compromise relating thereto which may give rise
      to a right to indemnification under subsection 6.2 or 6.3 hereof;

6.1.2 "Direct Claim" means any Claim by an Indemnified Party against an
      Indemnifying Party which does not result from a Third Party Claim;

6.1.3 "Indemnifying Party" means any party obligated to provide indemnification
      under this Agreement (including the parties intervening into this
      Agreement);

6.1.4 "Indemnified Party" means any party entitled to indemnification under
      this Agreement;

6.1.5 "Indemnity Payment" means the aggregate amount of each Loss required to
      be paid pursuant to subsection 6.2 or the amount of each Loss required to
      be paid pursuant to subsection 6.3 hereof;

6.1.6 "Loss" means any and all loss , liability, damage, cost, expense, charge,
      fine, penalty or assessment, resulting from or arising out of any Claim,
      including the reasonable costs and expenses of any action, suit,
      proceeding, demand, assessment, judgment, settlement or compromise
      relating thereto and all interest, punitive damages, fines and penalties
      and reasonable attorneys', accountants' and experts' fees and expenses
      incurred in connection therewith; and

6.1.7 "Third Party Claim" means any Claim asserted against an Indemnified Party
      by any Person who is not a party to this Agreement.

6.2   Indemnification by the Corporation.  The Corporation hereby agrees to
indemnify and save and hold harmless each Investor from and against any Loss
suffered or incurred by an Investor as a result of, arising out of or relating
to:

6.2.1 any violation, contravention or breach of any covenant, agreement or
      obligation of the Corporation under or pursuant to this Agreement or any
      other document or certificate delivered to the Investors by or on behalf
      of the Corporation in connection with this Agreement, as well as any
      Claim by any Person containing allegations which, if true, would
      constitute such an event; and

6.2.2 any incorrectness in, or breach of, any representation or warranty made
      by the Corporation in this Agreement, or made or to be made in any other
      document or certificate delivered or to be delivered to the Investors by
      or on behalf of the Corporation in connection therewith as well as any
      Claim by any Person containing allegations which, if true, would
      constitute such an event.

6.3   Indemnification by the Investors.  Each Investor hereby agrees to
indemnify and save and hold harmless the Corporation from and against any Loss
suffered or incurred, directly or indirectly, by it as a result of, arising out
of or relating to:

6.3.1 any violation, contravention or breach of any covenant, agreement or
      obligation of such Investor under or pursuant to this Agreement or any
      other document or certificate delivered to the Corporation by or on
      behalf of such Investor in connection therewith, as well as any Claim by
      any Person containing allegations which, if true, would constitute such
      an event; and

6.3.2 any incorrectness in, or breach of, any representation or warranty made
      by such Investor in this Agreement, or made or to be made in any other
      document or certificate delivered or to be delivered to the Corporation
      by or on behalf of such Investor in connection with this Agreement, as
      well as any Claim by any Person containing allegations which, if true,
      would constitute such an event.

6.4   Payment and Interest.  The Indemnifying Party shall reimburse, on demand,
to the Indemnified Party the amount of each Loss suffered or incurred by the
Indemnified Party, the whole as of the date that the Indemnified Party incurs
such Loss, together with interest on such amount(s) from the aforesaid date
until payment in full at a rate per annum equal to the Prime Rate, plus two (2)
percentage points. Interest shall be calculated and payable monthly on the last
day of each month during which any amount in respect of any Loss remained
unpaid, both before and after an arbitration award and/or judgment, with
interest on overdue interest calculated and payable at the same rate. The
interest payable in any month shall be calculated on the average amount of all
amounts in respect of any Loss that remained unpaid at any time during such
month. This amount shall be calculated by i) multiplying any amount in respect
of each Loss that remained unpaid at any time during such month by the number
of days that amount remained unpaid during such month and ii) dividing the
aggregate of all such products by the number of days in such month. If such
Claim is subsequently determined not to have been valid, the Indemnified Party
shall reimburse the Indemnifying Party for the amount so paid together with

interest at the Prime Rate per annum, plus two (2) percentage points,
calculated and payable monthly as provided previously in this subsection, from
the month such payment was made by the Indemnifying Party to the month in which
the Indemnified Party repaid such amount.

6.5   Notification.  Promptly upon obtaining knowledge thereof, the Indemnified
Party shall notify the Indemnifying Party of each Claim which the Indemnified
Party has determined has given or could give rise to indemnification under this
Section 6, describing such Claim in reasonable detail. In circumstances where
the Indemnifying Party is notified of such Claim but not promptly, the
Indemnifying Party shall not be relieved from any duty to indemnify and save

and hold harmless which otherwise might exist with respect to such Claim unless
(and only to that extent) the omission to notify promptly materially prejudices
the ability of the Indemnifying Party to exercise its right to defend provided
in this Section 6.

6.6   Defense of Third Party Claims.  The Indemnifying Party shall have the
right, after receipt of the Indemnified Party's notice under subsection 6.5
hereof with respect to a Third Party Claim and upon giving written notice to
the Indemnified Party within ten (10) Business Days of such receipt, and
subject to the rights of any insurer or other third party having potential
liability therefor, to defend the Third Party Claim at its own cost and expense
with counsel of its own selection, provided that:

6.6.1 the Indemnified Party shall at all times have the right to fully
      participate in the defense at its own expense;

6.6.2 the Third Party Claim seeks only monetary damages and does not seek any
      injunctive or other relief against the Indemnified Party;

6.6.3 the Indemnifying Party unconditionally acknowledges in writing its
      obligation to indemnify and save and hold the Indemnified Party harmless
      with respect to the Third Party Claim, if it is found that such
      obligation exists;

6.6.4 legal counsel chosen by the Indemnifying Party is satisfactory to the
      Indemnified Party, acting reasonably; and

6.6.5 in the event that such Third Party Claim is in excess of $2,000,000, the
      Indemnifying Party shall deliver a letter of credit, surety bond or
      similar security in form and substance satisfactory to the Indemnified
      Party, acting reasonably, in the amount of such Third Party Claim as
      security for the payment of amounts payable by the Indemnifying Party to
      the Indemnified Party pursuant hereto, inclusive of reasonably estimated
      interest and costs. Amounts payable by the Indemnifying Party pursuant to
      a Third Party Claim shall be paid in accordance with the terms of the
      settlement or judgment, as applicable, but in any event prior to the
      expiry of any delay for a judgment to become executory.

6.7   Settlement of a Third Party Claim.  The Indemnifying Party shall not be
permitted to compromise and settle or to cause a compromise and settlement of

any Third Party Claim, without the prior written consent of the Indemnified
Party, unless:

6.7.1 the terms of the compromise and settlement require only the payment of
      money and do not require the Indemnified Party to admit any wrongdoing or
      take or refrain from taking any action;

6.7.2 the Indemnified Party receives, as part of the compromise and settlement,
      a legally binding and enforceable unconditional satisfaction and release,
      which is in form and substance satisfactory to the Indemnified Party,
      acting reasonably; and

6.7.3 the Third Party Claim and any claim or liability of the Indemnified Party

      with respect to such Third Party Claim is being fully satisfied because
      of the compromise and settlement and the Indemnified Party is being
      released from any and all obligations or liabilities it may have with
      respect to the Third Party Claim.

6.8   Waiver of Right to Defend Third Party Claims.  If the Indemnifying Party
fails:

6.8.1 within fifteen (15) Business Days from receipt of the notice of a Third
      Party Claim to give notice of its intention to defend the Third Party
      Claim in accordance with subsection 6.6 hereof, or

6.8.2 to comply at any time with any of subsections 6.6.1 through 6.6.5
      (inclusively) hereof,

then the Indemnifying Party shall be deemed to have waived its right to defend
the Third Party Claim and the Indemnified Party shall have the right (but not
the obligation) to undertake the defense of the Third Party Claim and
compromise and settle the Third Party Claim on behalf, for the account and at
the risk and expense of the Indemnifying Party.

6.9   Direct Claims.  If the Indemnifying Party fails to respond in writing to
any written notice of a Direct Claim given by the Indemnified Party pursuant to
subsection 6.5 hereof, and fails to make an Indemnity Payment to the
Indemnified Party within ten (10) Business Days thereof, the Indemnifying Party
shall be deemed to have rejected such Direct Claim, in which event the
Indemnified Party shall be free to pursue such rights, recourses and remedies
as may be available to it.

6.10  Right of Offset.  Without in any way limiting the terms of this Section
6, each party shall have the right to offset against all amounts payable from
time to time by it to any other party, howsoever arising, including under this
Agreement, any amount owing by such other party pursuant to the indemnification
obligations contained in this Agreement to the party intending to offset.

6.11  Cumulative Rights.  The rights, recourses and remedies provided to an
Indemnified Party under this Section 6 are cumulative with any other right,
recourse and remedy such Indemnified Party may have or may hereafter acquire

under Applicable Law, and any right, recourse or remedy of such Indemnified
Party may be asserted completely against the Indemnifying Party, without regard
to the rights, recourses or remedies the Indemnified Party may have against any
other Person.

7.    COVENANTS OF THE CORPORATION

7.1   Use of Proceeds.  The Corporation hereby covenants and agrees that the
subscription price to be delivered by the Investors to the Corporation pursuant
to this Agreement shall be used in accordance with the detailed budget of the
Corporation annexed hereto as Schedule 7.1 and in the manner set forth in the
Business Plan or as may be deemed appropriate by the Board of Directors of the
Corporation.

7.2   Reservation of Stock.  So long the Investors hold any Purchased
Securities, the Corporation will at all times reserve and keep available,
solely for issuance and delivery upon the conversion of such Purchased
Securities, all Common Shares issuable upon the conversion of such Purchased
Securities.

7.3   Notice and Information Rights.  The Corporation shall from the date
hereof deliver to each Investor such information and notices as the Corporation
is required to deliver to the holders of Common Shares of the Corporation
pursuant to the Articles of Incorporation or otherwise.

8.    GENERAL PROVISIONS

8.1   Further Assurances.  Each party upon the request of the others, shall do,
execute, acknowledge and deliver or cause to be done, executed, acknowledged or
delivered all such further acts, deeds, documents, assignments, transfers,
conveyances, powers of attorney and assurances as may be reasonably necessary
or desirable to effect complete consummation of the transactions contemplated
by this Agreement.

8.2   Default Interest.  Subject to the provisions of subsection 6.4 hereof, if
any party fails to pay any other party any amounts due hereunder within ten
(10) days of the due date, the party owing such money shall pay to the party
owed such money, from the date such amount was due, interest at the Prime Rate,
plus three (3) percentage points, compounded monthly and payable on demand.

8.3   Successors in Interest.  This Agreement and the provisions hereof shall

enure to the benefit of and be binding upon the parties and their respective
successors and permitted assigns.

8.4   Arbitration.  All disputes or controversies between the parties in
respect of the validity, interpretation or performance of the provisions of
this Agreement shall be definitively dealt with using the rules of conciliation
and arbitration of the International Chamber of Commerce, by one arbitrator
appointed in accordance with said rules, and to the exclusion of any courts
except for any provisional remedy including injunctive relief and seizure
before judgment which may be obtained from any court or tribunal, the whole in

accordance with said rules in force at the time of execution of this Agreement.
Any arbitration proceeding required pursuant to the terms thereof shall take
place in Montreal, Quebec and shall be conducted in both the English and French
language.

8.5   Notices.  All offers, acceptances, rejections, notices, requests,
authorizations, permissions directions, demands and other communications
hereunder shall be given in writing and shall be given by telecopier, or
delivered by hand, to the other party at the following addresses:

if to Sofinov:               SOFINOV SOCIETE FINANCIERE
                             D'INNOVATION INC.

                             1981 McGill College Avenue
                             Montreal, Quebec
                             H3A 3C7
                             Attention: The President

                             Telecopier: (514) 847-2628

if to CDPQ:                  CAPITAL COMMUNICATIONS CDPQ INC.
                             1981 McGill College Avenue
                             Montreal, Quebec

                             H3A 3C7
                             Attention: The President

                             Telecopier: (514) 847-5980

if to the Corporation:       TOUCHTUNES MUSIC CORPORATION
                             1800 East Sahara
                             Suite 107
                             Las vegas, Nevada
                             89104, U.S.A.
                             Attention: The President

                             Telecopier: (702) 734-7500

with a copy in all cases to: LAPOINTE ROSENSTEIN
                             1250 RenE-LEvesque Blvd. West
                             Suite 1400

                             Montreal, Quebec
                             H3B 5E9
                             Attention: Claude Bergeron

                             Telecopier: (514) 925-9001

with a copy in all cases to: DE GRANDPRE CHAIT
                             1000 de la GauchetiEre West
                             29th Floor

                             Montreal, Quebec
                             Attention: Jacques Bourque

                             Telecopier: (514) 878-4333

with a copy in all cases to: KARP & SOMMERS
                             950 Third Avenue
                             New York, NY
                             10022, USA
                             Attention: Aaron Karp

                             Telecopier: (212) 421-1650

or at such other address as the parties may have previously indicated to the
other parties in writing in conformity with the foregoing. Any such notice,
request, demand or other communication shall be deemed to have been received on
the date of delivery if delivered by hand, or the next Business Day immediately
following the date of transmission if sent by telecopier. The original copy of
any notice sent by telecopier shall be forwarded to the other party by
registered mail, receipt return requested.

8.6   Time of the essence.  Time shall be of the essence in this Agreement.

8.7   Counterparts.  This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same document.

      IN WITNESS WHEREOF, the parties have signed at the place and on the date
first hereinabove mentioned.

                             SOFINOV SOCIETE FINANCIERE
                             D'INNOVATION INC.

                             Per: /s/Denis Dionne
                                  -----------------------------
                                  Denis Dionne

                             Per: /s/Pierre Pharand
                                  ------------------------------
                                  Pierre Pharand

                             CAPITAL COMMUNICATIONS CDPQ INC.

                             Per:/s/Helene Belanger
                              -------------------------
                                  Helene Belanger

                             Per /s/Roland Ribotti
                              -------------------------
                                  Roland Ribotti

                             TOUCHTUNES MUSIC CORPORATION

                             Per:/s/Tony Mastronardi
                             -------------------------
                                  Tony Mastronardi

                                 INTERVENTION

EACH OF THE UNDERSIGNED HEREBY INTERVENES TO THESE PRESENTS, hereby declares
having taken cognizance of all of the provisions contained in this Agreement,
with which he declares himself to be entirely satisfied and familiar, and
hereby represents and warrants to each of the Investors, jointly and severally
with the Corporation, waiving the benefits of division and discussion, that all
of the representations and warranties of the Corporation set forth in
subsections 4.3.4, 4.3.8, 4.3.12, 4.3.13, 4.3.14, 4.3.18, 4.3.26, 4.3.27,
4.3.28, 4.3.31 and 4.3.32 are true, accurate and complete.

      Montreal, this 18th day of May, 2000

                                            /s/Tony Mastronardi
                                            ---------------------
                                            TONY MASTRONARDI

                                            /s/Guy Nathan
                                            ---------------------
                                            GUY NATHAN

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