Document:

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                         AGREEMENT OF PURCHASE AND SALE

                                 BY AND BETWEEN

                          LEITCH TECHNOLOGY CORPORATION

                                       AND

                        PATH 1 NETWORK TECHNOLOGIES INC.

                           DATED AS OF APRIL 10, 2000

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                                TABLE OF CONTENTS
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ARTICLE I. PURCHASE AND SALE OF THE PATH 1 SHARES.................................................................1
           1.1      Purchase and Sale of the Path 1 Shares........................................................1
           1.2      Purchase Price................................................................................1

ARTICLE II. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.........................................................1
           2.1      Organization and Qualification; Company Subsidiaries..........................................2
           2.2      Conflicts.....................................................................................2
           2.3      Capitalization................................................................................2
           2.4      Reports; Financial Statements; Undisclosed Liabilities........................................3
           2.5      Issuance of Path 1 Shares.....................................................................3
           2.6      Absence of Certain Changes....................................................................3
           2.7      Taxes.........................................................................................4
           2.8      Real Property Owned or Leased.................................................................4
           2.9      Title to Assets...............................................................................4
           2.10     Contractual and Other Obligations.............................................................5
           2.11     Employee Benefit Plans........................................................................5
           2.12     Labor Relations...............................................................................5
           2.13     Insurance.....................................................................................5
           2.14     Litigation....................................................................................5
           2.15     Permits; Compliance with Applicable Law.......................................................5
           2.16     Intellectual Property.........................................................................6
           2.17     Consents......................................................................................6
           2.18     Foreign Person................................................................................6
           2.19     Authority.....................................................................................6
           2.20     Brokers and Finders...........................................................................7
           2.21     Compensation..................................................................................7
           2.22     Full Disclosure...............................................................................7
           2.23     Investment....................................................................................7
           2.24     Legend........................................................................................8

ARTICLE III. REPRESENTATIONS AND WARRANTIES OF PURCHASER.........................................................10
           3.1      Organization and Qualification; Purchaser Subsidiaries.......................................10
           3.2      Conflicts....................................................................................10
           3.3      Capitalization...............................................................................10
           3.4      Financial Statements; Undisclosed Liabilities................................................10
           3.5      Issuance of Leitch Shares....................................................................11
           3.6      Consents.....................................................................................11
           3.7      Authority....................................................................................11
           3.8      Reports......................................................................................11
           3.9      Full Disclosure..............................................................................12
           3.10     Investment...................................................................................12
           3.11     Legend.......................................................................................13
           3.12     Brokers and Finders..........................................................................13

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                               TABLE OF CONTENTS
                                  (CONTINUED)

           3.13     Leitch Shares................................................................................13

ARTICLE IV. ADDITIONAL COVENANTS AND AGREEMENTS..................................................................14
           4.1      Interim Operations of the Company............................................................14
           4.2      Alternative Proposals........................................................................16
           4.3      Reasonable Best Efforts......................................................................17
           4.4      Purchaser Access to Information..............................................................18
           4.5      Publicity....................................................................................18
           4.6      Notification of Certain Matters..............................................................18
           4.7      Stock Exchange Listings and Form 10..........................................................19
           4.8      Company Disclosure Schedule..................................................................19
           4.9      Registration Rights..........................................................................19

ARTICLE V. CLOSING...............................................................................................20
           5.1      Time and Place of Closing....................................................................20
           5.2      Closing Deliveries...........................................................................20
           5.3      Delivery of Path 1 Shares....................................................................21
           5.4      Tax Matters..................................................................................22

ARTICLE VI. CONDITIONS TO THE PURCHASE AND SALE OF THE PATH 1 SHARES.............................................22
           6.1      Conditions to Each Party's Obligations to Close..............................................22
           6.2      Conditions to the Obligations of Purchaser...................................................22
           6.3      Conditions to the Obligations of the Company.................................................23

ARTICLE VII. TERMINATION.........................................................................................24
           7.1      Termination..................................................................................24
           7.2      Effect of Termination........................................................................25

ARTICLE VIII. INDEMNIFICATION....................................................................................25
           8.1      Indemnity....................................................................................25
           8.2      Limitation on Indemnity......................................................................25
           8.3      Procedure....................................................................................25
           8.4      Remedies.....................................................................................26
           8.5      Time Limit...................................................................................26

ARTICLE IX. MISCELLANEOUS AND GENERAL............................................................................26
           9.1      Payment of Expenses and Other Payments.......................................................26
           9.2      Survival of Representations and Warranties...................................................26
           9.3      Modification or Amendment....................................................................26
           9.4      Waiver of Conditions.........................................................................26
           9.5      Counterparts.................................................................................27
           9.6      Governing Law................................................................................27
           9.7      Jurisdiction; Waiver of Trial by Jury........................................................27
           9.8      Notices......................................................................................27
           9.9      Entire Agreement; Assignment.................................................................28

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           9.10     Parties in Interest..........................................................................28
           9.11     Validity.....................................................................................28
           9.12     Captions.....................................................................................29
           9.13     Specific Performance.........................................................................29
           9.14     "Knowledge"of the Company or Purchaser.......................................................29

ARTICLE X. DEFINITIONS...........................................................................................29
           10.1     Certain Definitions..........................................................................29
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                         AGREEMENT OF PURCHASE AND SALE

                  AGREEMENT OF PURCHASE AND SALE (this "Agreement") dated as of
April 10, 2000, by and between Leitch Technology Corporation, a corporation
organized under the laws of the Province of Ontario ("Purchaser"), and Path 1
Network Technologies Inc., a Delaware corporation (the "Company"). Capitalized
terms used herein and not defined in the specific Section in which they are used
shall have the meanings assigned to such terms in Article X hereof.

                                    RECITALS

                  WHEREAS, the Company is engaged in the business of developing
software and hardware technologies which enable the merging of disparate digital
information over the same network infrastructure and related activities from its
headquarters in San Diego, California;

                  WHEREAS, Purchaser desires to acquire from the Company
1,250,000 newly issued shares of Class A common stock, $.001 par value (the
"Path 1 Class A Common Stock"), of the Company (all such 1,250,000 shares of
Path 1 Class A Common Stock being hereinafter referred to as the "Path 1
Shares") and the Company desires to sell all of the Path 1 Shares to Purchaser,
on the terms and subject to the conditions hereinafter set forth.

                  NOW, THEREFORE, in consideration of the foregoing and the
respective representations, warranties, covenants and agreements set forth
herein, the parties hereto agree as follows:

                                   ARTICLE I
                     PURCHASE AND SALE OF THE PATH 1 SHARES

                  1.1      PURCHASE AND SALE OF THE PATH 1 SHARES. Subject to
the terms and conditions of this Agreement and on the basis of the
representations, warranties, covenants and agreements herein contained, at the
Closing (as hereinafter defined), the Company agrees to sell, assign and convey
to Purchaser, and Purchaser agrees to purchase, acquire and accept from the
Company, the Path 1 Shares.

                  1.2      PURCHASE PRICE. The purchase price (the "Purchase
Price") for the Path 1 Shares is Ten Million U.S. Dollars ($10,000,000) and
200,000 common shares, no par value (the "Leitch Common Shares"), of Purchaser
(such 200,000 Leitch Common Shares being hereinafter referred to as the "Leitch
Shares"). The Purchase Price for the Path 1 Shares is payable at the Closing by
delivery to the Company of a wire transfer in immediately available funds to an
account designated by the Company in the amount of U.S. $10,000,000 and a
certificate representing the Leitch Shares registered in the name of the
Company.

                                  ARTICLE II.
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

                  The Company hereby represents and warrants to Purchaser as
follows:

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                  2.1      ORGANIZATION AND QUALIFICATION; COMPANY SUBSIDIARIES.
The Company is a corporation validly existing and in good standing under the
laws of the State of Delaware, and has all requisite corporate power and
authority to own, operate and lease its assets and properties and to conduct the
businesses in which it is now engaged. The Company is duly qualified to transact
business as a foreign corporation in all jurisdictions wherein it is required to
be so qualified, except where the failure to be so qualified would not have a
Company Material Adverse Effect. The Company does not have any subsidiaries
other than as set forth in Section 2.1 of the disclosure schedule delivered to
Purchaser by the Company concurrently with the execution hereof (the "Company
Disclosure Schedule"). The Company does not own any capital stock or other
proprietary interest, directly or indirectly, in any corporation, association,
trust, partnership, joint venture, limited liability company or other Person nor
is the Company bound by any agreement to acquire any such capital stock or other
proprietary interest.

                  2.2      CONFLICTS. Neither the execution and delivery of this
Agreement by the Company, nor the consummation of the transactions contemplated
hereby (the "Transactions") to be consummated by the Company, (a) violates any
provision of the Certificate of Incorporation or By-laws of the Company or (b)
constitutes a violation of any Applicable Law. Except as set forth in Section
2.2 of the Company Disclosure Schedule, neither the execution and delivery of
this Agreement by the Company, nor the consummation of the Transactions
contemplated hereby to be consummated by the Company, violates, conflicts with,
results in any breach of any of the terms of, or results in the termination of
or the creation of any Lien pursuant to the terms of any material agreement,
instrument, or contract to which the Company is a party or by which it is bound,
except where such violation, conflict, breach, termination or Lien would not
have a Company Material Adverse Effect.

                  2.3      CAPITALIZATION. The authorized capital stock of the
Company consists of: (i) 20,000,000 shares of Path 1 Class A Common Stock, of
which, as of the date hereof, 6,462,651 shares were issued and outstanding, (ii)
10,000,000 shares of Path 1 Class B Common Stock, of which, as of the date
hereof, no shares of Path 1 Class B Common Stock were issued and outstanding and
(iii) 10 shares of Series A preferred stock, of which, as of the date hereof, no
shares were issued and outstanding. Except for (i) 897,336 options to purchase
the same number of shares of Path 1 Class A Common Stock, (ii) 642,996 options
to purchase the same number of shares of Path 1 Class B Common Stock and (iii)
up to a maximum of 650,000 options to purchase the same number of shares of Path
1 Class B Common Stock which may be granted to current or future officers,
employees or consultants of the Company, there are no outstanding options,
warrants, rights, convertible or exchangeable securities, proxy or stockholders'
agreements or agreements of any kind for the purchase or acquisition from, or
issuance by, the Company of any of its securities. Except for the Stockholders'
Agreement, there are no outstanding agreements or other arrangements to which
the Company is a party concerning the voting of any shares of capital stock of
the Company or which obligate the Company to redeem or otherwise acquire from
any Person any shares of capital stock of the Company. All outstanding shares of
capital stock of the Company are duly authorized, validly issued, fully paid and
nonassessable.

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                  2.4      REPORTS; FINANCIAL STATEMENTS; UNDISCLOSED
LIABILITIES.

                           (a)      On March 23, 2000, the Company re-filed a
General Form for Registration of Securities on Form 10 (the "Form 10") with the
Securities and Exchange Commission (the "SEC") pursuant to the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). On the re-filing date,
the Form 10 complied in all material respects with the applicable requirements
of the Exchange Act, and the published rules and regulations of the SEC
thereunder. The Form 10 will not, on the effective date thereof, contain any
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading.

                           (b)      On the filing date, the financial statements
(including the related notes thereto) of the Company included in the Form 10
complied in all material respects with applicable accounting requirements and
the published rules and regulations of the SEC with respect thereto, were
prepared in conformity with generally accepted accounting principles ("GAAP")
applied on a consistent basis during the periods involved (except as otherwise
noted therein) and presented fairly in all material respects the financial
position of the Company as of their respective dates, and the results of its
operations and cash flows for the periods presented therein (subject, in the
case of the unaudited interim financial statements, to normal year-end
adjustments). As of the date of the Company's most recent regularly prepared
consolidated balance sheet, the Company had less than $10,000,000 of
consolidated total assets.

                           (c)      Except (i) as set forth in Section 2.4(c) of
the Company Disclosure Schedule, (ii) as set forth in the balance sheet of the
Company as of December 31, 1999 set forth in the Form 10 (the "Balance Sheet")
and (iii) for current liabilities and obligations incurred in the ordinary
course of business consistent with past practice since December 31, 1999 (and
not materially different in type or amount), the Company does not have any
material liabilities or obligations of any nature (whether accrued, absolute,
contingent or otherwise) required by GAAP to be recognized or disclosed on a
balance sheet of the Company or in the notes thereto.

                  2.5      ISSUANCE OF PATH 1 SHARES. When issued, sold and
delivered to Purchaser in accordance with the terms of this Agreement for the
consideration expressed herein, the Path 1 Shares shall be duly and validly
authorized, fully paid and non-assessable shares of Path 1 Class A Common Stock
free and clear of any restrictions on transfer, other than restrictions on
transfer under the Stockholders' Agreement or applicable state, foreign and
federal securities laws, and free and clear of any preemptive or similar rights.

                  2.6      ABSENCE OF CERTAIN CHANGES. Since the date of the
Balance Sheet, (i) the Company has conducted its business in the ordinary and
usual course consistent with past practice, and (ii) there has not occurred any
events or changes having, or reasonably likely to have, individually or in the
aggregate, a Company Material Adverse Effect.

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                  2.7      TAXES. Except as set forth in Section 2.7 of the
Company Disclosure Schedule:

                           (a)      The Company has filed or caused to be filed
on a timely basis all returns, reports or other declarations relating to Taxes
required to be filed by it (the "Tax Returns"), except for any such Tax Returns
the failure to file which would not have a Company Material Adverse Effect, and
the Company has timely paid or caused to be paid all federal, state, local,
provincial and foreign taxes (including, but not limited to, income, franchise,
property (real, tangible and intangible), sales, use, unemployment, withholding,
gross receipts, business license, transfer, capital, net worth, gains, excise,
social security and workers' compensation taxes and estimated income and
franchise tax payments, and penalties, interest and fines with respect to any
thereof) (collectively, "Taxes") payable by it with respect to the periods
covered by such Tax Returns.

                           (b)      The Company has not received written notice
from any taxing authority of any deficiency, claim or other dispute relating to
the payment or assessment of any Taxes for any period which remains unsettled at
the date hereof.

                           (c)      The Company has not executed any waiver of
any statute of limitations on the assessment or collection of Taxes.

                           (d)      There are no Liens for Taxes (other than
Permitted Liens) upon or, to the Company's Knowledge threatened against any
assets of the Company, other than Liens which would not have a Company Material
Adverse Effect.

                           (e)      The Company is not a party to any pending
or, to the Company's Knowledge, threatened action, proceeding or assessment by
any taxing authority, foreign or domestic, relating to the Company.

                           (f)      No election under Section 341(f) of the Code
has been made to treat the Company as a "consenting corporation" as defined in
such Section 341(f).

                           (g)      The Company is not and never has been a
United States real property holding corporation within the meaning of Section
897(c)(2) of the Code.

                  2.8      REAL PROPERTY OWNED OR LEASED. The Company does not
own any real property. Except as set forth in Section 2.8 of the Company
Disclosure Schedule, the Company enjoys peaceful and undisturbed possession
under all leases under which it is the lessee, and all said leases are valid and
subsisting and in full force and effect, except with respect to Permitted Liens,
or as could not reasonably be expected to have a Company Material Adverse
Effect.

                  2.9      TITLE TO ASSETS. Except as set forth in Section 2.9
of the Company Disclosure Schedule, the Company has good and merchantable title
to all of the properties and assets (tangible and intangible) which it owns and
valid and existing leaseholds, licenses or other rights to use all of the other
properties and assets which it leases, licenses or uses in the operation of its
business as currently conducted, in any case, free and clear of all Liens,
except for Permitted Liens, or as could not reasonably be expected to have a
Company Material Adverse Effect.

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                  2.10     CONTRACTUAL AND OTHER OBLIGATIONS. The Company does
not have and is not bound by any material contract, agreement, lease,
commitment, or proposed transaction, judgment, order, writ or decree, written or
oral, absolute or contingent, other than those that have been entered into in
the ordinary course of business or as set forth on Section 2.10 of the Company
Disclosure Schedule. The Company is not, and to the Company's Knowledge no other
Person party thereto is, in violation or default in any material respect of any
provision of any material agreement, instrument, or contract to which the
Company is a party or by which the Company is bound.

                  2.11     EMPLOYEE BENEFIT PLANS. Except as set forth in
Section 2.11 of the Company Disclosure Schedule, the Company does not maintain
or sponsor, nor is it required to make contributions to, any pension,
profit-sharing, bonus, incentive, welfare or other employee benefit plan within
the meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA") (such plans and related trusts, insurance and annuity
contracts, funding media and related agreements and arrangements, being
hereinafter referred to as the "Benefit Plans").

                  2.12     LABOR RELATIONS. Except as set forth in Section 2.12
of the Company Disclosure Schedule, there are no labor strikes, stoppages or
lockouts between the Company and its employees and the Company is not a party to
any contract or agreement with any labor organization or collective bargaining
unit.

                  2.13     INSURANCE. The Company carries insurance covering its
properties and business adequate and customary for the type and scope of the
properties and business.

                  2.14     LITIGATION. Except or as set forth in Section 2.14 of
the Company Disclosure Schedule, there is no litigation, arbitration, claim or
other legal proceeding (collectively, "Actions") pending or, to the Company's
Knowledge, threatened against the Company, or any of its properties or assets
(tangible or intangible), except Actions which, individually or in the
aggregate, could not reasonably be expected to result in a Company Material
Adverse Effect.

                  2.15     PERMITS; COMPLIANCE WITH APPLICABLE LAW.

                           (a)      PERMITS. The Company has all permits,
licenses, approvals, franchises and authorizations (collectively, the "Permits")
required for the conduct of the business in which it is presently engaged,
except for such Permits which the failure to have, individually or in the
aggregate, would not have a Company Material Adverse Effect. All of the Permits
are in full force and effect, except where the failure to be in effect,
individually or in the aggregate, would not have a Company Material Adverse
Effect.

                           (b)      APPLICABLE LAW. Except as set forth in
Section 2.15(b) of the Company Disclosure Schedule, the Company is not in
violation of any Applicable Law applicable to it, except where the failure to be
in compliance, individually or in the aggregate, could not, individually or in
the aggregate, reasonably be expected to have a Company Material Adverse Effect.

                                       5

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                  2.16     INTELLECTUAL PROPERTY. As of the date hereof, the
Company does not have any issued patents or trademarks. Section 2.16 of the
Company Disclosure Schedule sets forth a list as of the date hereof of all the
Company's pending applications for patents, all of the Company's pending
applications for trademarks, tradenames and service marks, all registrations of
copyrights and all pending applications therefor, and all licenses and
agreements in respect thereof (collectively, the "Registered Intellectual
Property"). To the Company's Knowledge, all of the patents, trademarks,
tradenames, service marks, copyrights and licenses or other agreements listed in
Section 2.16 of the Company Disclosure Schedule are valid and in full force and
effect, except as otherwise noted in Section 2.16 of the Company Disclosure
Schedule. Except as set forth in Section 2.16 of the Company Disclosure Schedule
and except as could not, individually or in the aggregate, reasonably be
expected to have a Company Material Adverse Effect, (i) to the Company's
Knowledge, the rights of the Company to the Registered Intellectual Property and
to all other intellectual property used or held for use in the business of the
Company, except commercially available over-the-counter shrink-wrapped software,
(the "Other Intellectual Property") do not conflict with or infringe on the
rights of any Person and the Company has not received any written notice
alleging that the Company has violated or, by conducting its business as
proposed, would violate the intellectual property rights of such Person, and
(ii) to the Company's Knowledge, no other Person is infringing on the rights of
the Company to its Registered Intellectual Property or the Other Intellectual
Property.

                  2.17     CONSENTS. Except for such filings as are required to
be made by the Company and exemptions, rulings or orders as are required under
any federal, state or foreign securities laws (all of which will be made or
obtained on or prior to the Closing) and except as set forth in Section 2.17 of
the Company Disclosure Schedule, no consents, approvals or authorizations of, or
filings with, any Governmental Authority or any other Person are required on the
part of the Company in connection with the execution and delivery of this
Agreement by the Company and the consummation of the Transactions contemplated
hereby to be consummated by the Company, except where the failure to obtain such
consents, approvals, or authorizations, or make such filings, could not,
individually or in the aggregate, have a Company Material Adverse Effect. No
security of the Company is, as of the date hereof, (i) listed on any national
securities exchange, (ii) authorized for quotation on The Nasdaq Stock Market or
(iii) held of record by more than 2,000 stockholders.

                  2.18     FOREIGN PERSON. The Company is not a foreign person
within the meaning of Section 1445(f)(3) of the Code.

                  2.19     AUTHORITY. The Company has the requisite corporate
power and authority to execute and deliver this Agreement and to consummate the
Transactions. The execution, delivery and performance of this Agreement has been
duly and validly authorized by the Company's Board of Directors and no other
corporate action on the part of the Company is necessary to authorize this
Agreement or to consummate the transactions contemplated by this Agreement. This
Agreement has been duly and validly executed and delivered by the Company and,
assuming this Agreement constitutes the valid and binding agreement of
Purchaser, constitutes the valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms, except that the
enforcement hereof may be limited (i) by bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect relating to
creditors' rights generally, (ii) by general principles of equity (regardless of
whether

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enforceability is considered in a proceeding in equity or at law) and (iii) as
to rights to indemnity that are contrary to applicable securities laws.

                  2.20     BROKERS AND FINDERS. Other than First Security Van
Kasper, the Company has not entered into a written agreement with any investment
banker, broker, finder, advisor, consultant or intermediary in connection with
the Transactions which would be entitled to any investment banking, brokerage,
finders, advisory or similar fee or commission in connection with this Agreement
or the Transactions.

                  2.21     COMPENSATION. Except as set forth in Section 2.22 of
the Company Disclosure Schedule, the Company is not bound by any bonus plan,
incentive plan, stock option plan, stock purchase plan, severance plan or other
benefits plans or arrangements.

                  2.22     FULL DISCLOSURE. No representation or warranty by the
Company in this Agreement and no statement by the Company contained in any
exhibit, disclosure schedule, or certificate contemplated by this Agreement
contains or will contain any untrue statement of material fact or omits or will
omit to state any material fact necessary, in light of the circumstances under
which it was made, in order to make the statements herein or therein not
misleading.

                  2.23     INVESTMENT. Without limiting the effect of Article
VIII hereof:

                           (a)      The Company understands that Purchaser
proposes to issue and deliver to the Company the Leitch Shares pursuant to this
Agreement without registration under the Securities Act of 1933, as amended (the
"Securities Act") or under any other Applicable Law; that for such purpose
Purchaser will rely upon the Company's representations and warranties contained
herein; and that registration under the Securities Act may be required if such
representations and warranties are not correct.

                           (b)      The Company has received such information
relating to the business and affairs of Purchaser which could reasonably be
deemed necessary or appropriate by the Company, and all additional information
which is necessary to verify the accuracy of the information so received. The
Company has had the opportunity to ask questions of and receive answers from
Purchaser concerning the business and affairs of Purchaser and concerning terms
and conditions of the Transactions. On the basis of the foregoing, the Company
is familiar with the operations, business plans and financial condition of
Purchaser.

                           (c)      The Company understands that, under the
existing rules of the SEC, the Company may be unable to sell the Leitch Shares
issued to the Company pursuant to this Agreement, except to the extent that such
shares may be sold (i) pursuant to an effective registration statement covering
such sale pursuant to the Securities Act and applicable state securities laws or
an applicable exemption therefrom or (ii) in a bona fide private placement to a
purchaser who shall be subject to the same restrictions on any resale or (iii)
subject to the restrictions contained in Rule 144 under the Securities Act
("Rule 144") or (iv) outside the United States in compliance with the
requirements of Rule 904 of Regulation S under the Securities Act ("Rule 904").

                                       7
<PAGE>

                           (d)      The Company is not relying on Purchaser
respecting the financial, tax and other economic considerations of an investment
in the Leitch Shares issued to the Company pursuant to this Agreement, and the
Company has relied on the advice of, or has consulted with, its own advisors.

                           (e)      The Company is familiar with the provisions
of Rule 144 and Rule 904 and the limitations upon the availability and
applicability of such rules.

                           (f)      The Company is an "accredited investor"
within the meaning of Regulation D under the Securities Act and is a
sophisticated investor familiar with the type of risks inherent in the
acquisition of restricted securities such as the Leitch Shares issued to the
Company pursuant to this Agreement, and its financial position is such that it
can afford to retain such shares for an indefinite period of time without
realizing any direct or indirect cash return on its investment.

                           (g)      The Company has such knowledge and
experience in financial, tax and business matters so as to enable it to utilize
the information made available to it in connection with the issuance of the
Leitch Shares issued to the Company pursuant to this Agreement to evaluate the
merits and risks of an investment in such shares and to make an informed
investment decision with respect thereto.

                           (h)      The Company is acquiring the Leitch Shares
issued to the Company pursuant to this Agreement as an investment for its
account, and without any present view towards the resale or other distribution
thereof.

                           (i)      The Company has been independently advised
as to or is aware of the restrictions with respect to trading in the Leitch
Shares imposed by applicable securities legislation in the jurisdiction in which
it resides and confirms that no representation has been made respecting such
restrictions with respect to trading in the Leitch Shares.

                           (j)      The Company acknowledges that the Leitch
Shares are not qualified for distribution to the public in Canada. The Company
certifies that (a) the Company is not a Canadian resident nor acting for the
account or benefit of a Canadian resident; (b) the Leitch Shares were not
offered to the Company in Canada, and the Company was, at the time of agreeing
to sell the Path 1 Shares, and is outside Canada; and (c) for a period ending 40
days after the date of issuance of the Leitch Shares to the Company, the Company
will not resell the Leitch Shares to any Canadian resident or in Canada and,
thereafter, any resale by the Company to a Canadian resident or in Canada will
be made in accordance with applicable securities laws of the provinces and
territories of Canada.

                  2.24     LEGEND. Each certificate representing Leitch Shares
issued to the Company pursuant to this Agreement, shall contain upon its face or
upon the reverse side thereof a legend to the following effect:

                  "These securities have not been registered under the
                  Securities Act of 1933, as amended (the "Securities Act"), or
                  qualified for distribution to the public in Canada or
                  qualified under state securities laws and may not be sold,
                  pledged, or otherwise

                                       8
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                  transferred unless (a) covered by an effective registration
                  statement under the Securities Act, and qualified under
                  applicable state securities laws; (b) sold outside the United
                  States in accordance with Rule 904 of Regulation S under the
                  Securities Act; (c) pursuant to an exemption from registration
                  under the Securities Act provided by Rule 144 thereunder, if
                  available; or (d) in compliance with certain other procedures
                  satisfactory to Leitch Technology Corporation upon the
                  furnishing to Leitch Technology Corporation of an opinion from
                  counsel of recognized national standing in form and substance
                  satisfactory to Leitch Technology Corporation to the effect
                  that no registration or qualification is legally required for
                  such transfer. The holder hereof, by acquiring such
                  securities, agrees for the benefit of Leitch Technology
                  Corporation that for a period ending 40 days after the date of
                  the issuance of those securities by Leitch Technology
                  Corporation, the holder will not resell those securities to
                  any Canadian resident or in Canada. Delivery of this
                  certificate may not constitute "good delivery" in settlement
                  of transactions on the Toronto Stock Exchange. A new
                  certificate, bearing no legend, delivery of which will
                  constitute "good delivery", may be obtained from Leitch
                  Technology Corporation's Transfer Agent in connection with a
                  sale made pursuant to Rule 904 of Regulation S at a time
                  Leitch Technology Corporation is a "foreign private issuer" as
                  defined in Rule 405 under the Securities Act upon delivery of
                  this certificate after 40 days after the issuance of the
                  securities by Leitch Technology Corporation and a duly
                  executed declaration, in a form satisfactory to such Transfer
                  Agent and Leitch Technology Corporation, to the effect that
                  (A) the sale of the securities represented hereby is being
                  made in compliance with Rule 904 of Regulation S under the
                  Securities Act; and (B) certifying that (1) the buyer is not
                  an "Affiliate" (as defined in Rule 405 under the Securities
                  Act) of Leitch Technology Corporation; (2) the offer of such
                  securities was not made to a person in the United States and
                  either (x) at the time the buy order was originated, the buyer
                  was outside the United States, or Path 1 Network Technologies,
                  Inc. and any person acting on its behalf reasonably believe
                  that the buyer was outside the United States, or (y) the
                  transaction was executed on or through the facilities of the
                  Toronto Stock Exchange and neither Path 1 Network
                  Technologies, Inc. nor any person acting its behalf knows that
                  the transaction has been prearranged with a buyer in the
                  United States; (3) neither Path 1 Network Technologies, Inc.
                  nor any person acting on its behalf engaged in any directed
                  selling efforts in connection with the offer and sale of such
                  securities; (4) the sale is bona fide and not for the purpose
                  of "washing off" resale restrictions imposed because the
                  securities are "restricted securities"; and (5) the sale is
                  not a

                                       9
<PAGE>

                  transaction or part of a series of transactions which,
                  although in technical compliance with Regulation S, is part of
                  a plan or scheme to evade the registration requirements of the
                  Securities Act. Terms used herein have the meanings given to
                  them by Regulation S."

                                  ARTICLE III.
                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

                  Purchaser represents and warrants to the Company that:

                  3.1      ORGANIZATION AND QUALIFICATION; PURCHASER
SUBSIDIARIES. Purchaser is validly existing, under the laws of the jurisdiction
of its organization, and has all requisite corporate power, authority and legal
right to own, operate and lease its assets and properties and to conduct the
businesses in which it is now engaged. Purchaser is duly qualified to transact
business as a foreign corporation in all jurisdictions wherein it is required to
be so qualified, except where the failure to be so qualified would not have a
Purchaser Material Adverse Effect. Copies of the Articles of Incorporation and
By-laws or other organizational documents of Purchaser have been heretofore made
available to the Company, which copies are complete and correct and include all
amendments, modifications or supplements thereto.

                  3.2      CONFLICTS. Neither the execution and delivery of this
Agreement by Purchaser, nor the consummation of the Transactions to be
consummated by Purchaser, (a) violates any provision of the Articles of
Incorporation or By-laws of Purchaser or (b) subject to receipt of regulatory
approvals and required filings under federal, state and provincial securities
laws and the Ontario Business Corporations Act, constitutes a violation of any
Applicable Law. Neither the execution and delivery of this Agreement by
Purchaser nor the consummation of the Transactions contemplated hereby to be
consummated by Purchaser, violates, conflicts with, results in any breach of any
of the terms of, or results in the termination of or the creation of any
material Lien pursuant to the terms of any material contract or other obligation
to which Purchaser is subject, except where such violation, conflict, breach,
termination or Lien would not have a Purchaser Material Adverse Effect.

                  3.3      CAPITALIZATION. The authorized capital stock of
Purchaser consists of: (i) an unlimited number of shares of Leitch Common
Shares, of which, as of the date hereof, 25,071,573 shares of Leitch Common
Shares were issued and outstanding and (ii) an unlimited number of preference
shares, of which, as of the date hereof, no preference shares were issued and
outstanding. All outstanding shares of capital stock of Purchaser are, and all
shares of Leitch Common Shares to be issued as part of the Purchase Price will
be, when so issued, duly authorized, validly issued, fully paid and
nonassessable and not subject to preemptive rights.

                  3.4      FINANCIAL STATEMENTS; UNDISCLOSED LIABILITIES.
Purchaser has made available to the Company its audited consolidated financial
statements dated April 30, 1999 and its unaudited consolidated financial
statements (including the related notes thereto) of Purchaser for the nine
months ended January 31, 2000 which have been prepared in conformity with GAAP
in Canada applied on a consistent basis during the periods involved (except as
otherwise noted therein), and presented fairly in all material respects the
consolidated financial position of Purchaser as of their respective dates, and
the consolidated results of their operations and cash

                                       10
<PAGE>

flows for the periods presented therein (subject, in the case of the unaudited
interim financial statements, to normal year-end adjustments).

                  3.5      ISSUANCE OF LEITCH SHARES. When issued, sold and
delivered in accordance with the terms of this Agreement for the consideration
expressed herein to the Company, the Leitch Shares shall be duly and validly
authorized, fully paid and non-assessable Leitch Common Shares free and clear of
any restrictions on transfer, other that the restrictions on transfer under this
Agreement, or applicable state, federal, provincial and foreign securities laws.
Prior to the date hereof, Purchaser has filed an application with The Nasdaq
Stock Market to list the Leitch Common Shares thereon.

                  3.6      CONSENTS. Except for (i) such filings as may be
required by the By-laws, rules, regulations or policies of The Toronto Stock
Exchange in respect of Leitch Common Shares to be issued as part of the Purchase
Price and the listing of such Leitch Common Shares on The Toronto Stock Exchange
and (ii) such filings as are required to be made and exemption rulings or orders
as are required under the Ontario Business Corporations Act and Canadian
securities laws, no consents, approvals or authorizations of, or filings with,
any Governmental Authority or any other person or entity are required in
connection with the execution and delivery of this Agreement by Purchaser and
the consummation of the Transactions contemplated hereby to be consummated by
Purchaser, except where the failure to obtain such consents, approvals, or
authorizations, or make such filings, would not have a Purchaser Material
Adverse Effect.

                  3.7      AUTHORITY. Purchaser has the requisite corporate
power and authority to execute and deliver this Agreement and to consummate the
Transactions. The execution, delivery and performance of this Agreement and the
consummation by Purchaser of the Transactions have been duly and validly
authorized by the Board of Directors of Purchaser, and no other corporate action
on the part of Purchaser is necessary to authorize this Agreement or to
consummate the Transactions. This Agreement has been duly and validly executed
and delivered by Purchaser and, assuming this Agreement constitutes the valid
and binding agreement of the Company, constitutes the valid and binding
agreement of Purchaser, enforceable against it in accordance with its terms,
except that the enforcement hereof may be limited (i) by bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors' rights generally, (ii) by general principles of equity
(regardless of whether enforceability is considered in a proceeding in equity or
at law) and (iii) as to rights to indemnity under securities laws, by Applicable
Laws.

                  3.8      REPORTS. Purchaser is a reporting issuer under the
Securities Act (Ontario) (the "Ontario Securities Act"), is not on the list of
defaulting reporting issuers maintained under the Ontario Securities Act, and
has made available to the Company a true and complete copy of each quarterly,
annual or other form, report, filing or document filed by Purchaser with the
Governmental Authorities under the Ontario Securities Act, or under the rules,
policies, listing agreements or other requirements of The Toronto Stock Exchange
("Exchange Filing Requirements"), since July 9, 1999 which are all the forms,
reports, filing or documents (other than preliminary material) that Purchaser
was required to file with the Governmental Authorities under the Ontario
Securities Act, or pursuant to Exchange Filing Requirements, since July 9,

                                       11
<PAGE>

1999. All of such forms, reports, filing or documents filed prior to the date of
this Agreement are hereinafter referred to as the "Purchaser Disclosure
Documents."

                           (b)      As of their respective filing dates, the
Purchaser Disclosure Documents complied in all material respects with the
requirements of the Ontario Securities Act, the rules and regulations of
Governmental Authorities under the Ontario Securities Act, other Applicable Law,
and the Exchange Filing Requirements. As of their filing dates or effective
dates (whichever is later), none of the Purchaser Disclosure Documents contained
any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

                  3.9      FULL DISCLOSURE. No representation or warranty by
Purchaser in this Agreement and no statement by Purchaser contained in any
exhibit, disclosure schedule, or certificate contemplated by this Agreement
contains or will contain any untrue statement of material fact or omits or will
omit to state any material fact necessary, in light of the circumstances under
which it was made, in order to make the statements herein or therein not
misleading.

                  3.10     INVESTMENT. Without limiting the effect of Article
VIII hereof:

                           (a)      Purchaser understands that the Company
proposes to issue and deliver to Purchaser Path 1 Shares pursuant to this
Agreement without registration under the Securities Act; that for such purpose
the Company will rely upon Purchaser's representations and warranties contained
herein; and that registration under the Securities Act may be required if such
representations and warranties are not correct.

                           (b)      Purchaser has received such information
relating to the business and affairs of the Company which Purchaser has
requested, and all additional information which Purchaser has considered
necessary to verify the accuracy of the information so received. Purchaser has
had the opportunity to ask questions of and receive answers from the Company
concerning the business and affairs of the Company and concerning terms and
conditions of the Transactions. On the basis of the foregoing, Purchaser is
familiar with the operations, business plans and financial condition of the
Company.

                           (c)      Purchaser understands that, under the
existing rules of the SEC, Purchaser may be unable to sell the Path 1 Shares
issued to Purchaser pursuant to this Agreement, except to the extent that such
shares may be sold (i) pursuant to an effective registration statement covering
such sale pursuant to the Securities Act and applicable state securities laws or
an applicable exemption therefrom, (ii) in a bona fide private placement to a
purchaser who shall be subject to the same restrictions on any resale or (iii)
subject to the restrictions contained in Rule 144.

                           (d)      Purchaser is not relying on the Company
respecting the financial, tax and other economic considerations of an investment
in the Path 1 Shares issued to Purchaser pursuant to this Agreement, and
Purchaser has relied on the advice of, or has consulted with, its own advisors.

                                       12
<PAGE>

                           (e)      Purchaser is familiar with the provisions of
Rule 144 and the limitations upon the availability and applicability of such
rules.

                           (f)      Purchaser is an "accredited investor" within
the meaning of Regulation D under the Securities Act and is a sophisticated
investor familiar with the type of risks inherent in the acquisition of
restricted securities such as the Path 1 Shares issued to Purchaser pursuant to
this Agreement, and its financial position is such that it can afford to retain
such shares for an indefinite period of time without realizing any direct or
indirect cash return on its investment.

                           (g)      Purchaser has such knowledge and experience
in financial, tax and business matters so as to enable it to utilize the
information made available to it in connection with the issuance of the Path 1
Shares issued to Purchaser pursuant to this Agreement to evaluate the merits and
risks of an investment in such shares and to make an informed investment
decision with respect thereto.

                           (h)      Purchaser is acquiring the Path 1 Shares
issued to Purchaser pursuant to this Agreement as an investment for its account,
and without any present view towards the resale or other distribution thereof.

                           (i)      Purchaser has been independently advised as
to or is aware of the restrictions with respect to trading in the Path 1 Shares
imposed by applicable securities legislation in the jurisdiction in which it
resides and confirms that no representation has been made respecting such
restrictions with respect to trading in the Path 1 Shares.

                  3.11     LEGEND. Each certificate representing Path 1 Shares
issued to Purchaser pursuant to this Agreement, shall contain upon its face or
upon the reverse side thereof a legend as required by the Stockholders'
Agreement.

                  3.12     BROKERS AND FINDERS. Other than Yorkton Securities
Inc., Purchaser has not employed any investment banker, broker, finder, advisor,
consultant or intermediary in connection with the Transactions which would be
entitled to any investment banking, brokerage, finder's, advisory or similar fee
or commission in connection with this Agreement or the Transactions and the
Company does not, nor will it, have any obligation to pay Yorkton Securities
Inc. any fee or commission in connection with this Agreement or the consummation
of the Transactions.

                  3.13     LEITCH SHARES. Assuming (i) the accuracy of the
Company's representations and warranties as set forth in Section 2.23 hereof,
(ii) the Company's compliance with the requirements contained in the legend as
set forth in Section 2.24 hereof and (iii) that the Company does not hold, alone
or in combination with others, more than 20% of the outstanding voting
securities of Purchaser and does not otherwise hold a sufficient number of any
securities of Purchaser which would affect materially the control of Purchaser,
then the Leitch Shares will be freely tradeable through an appropriately
registered dealer in Canada.

                                       13
<PAGE>

                                   ARTICLE IV.
                       ADDITIONAL COVENANTS AND AGREEMENTS

                  4.1      INTERIM OPERATIONS OF THE COMPANY. Except with
respect to (i) the investment in the Company of up to $5 million by certain
investors currently contemplated by the Company, (ii) all contracts, options,
bonuses, stock purchase agreements or other compensation and other arrangements
made with respect to Michael T. Elliott and [****] and (iii) bonuses
not to exceed $50,000 and option grants not to exceed 50,000 shares of capital
stock of the Company made to certain employees or consultants, other than
Michael T. Elliott and [****], and except as set forth in Section 4.1
of the Company Disclosure Schedule, during the period from the date of this
Agreement to the date of Closing or termination of this Agreement pursuant to
Article VII hereof (unless Purchaser shall otherwise agree in writing and except
as otherwise contemplated by this Agreement), the Company shall conduct its
operations according to its ordinary and usual course of business in
substantially the same manner as heretofore conducted and use its reasonable
best efforts to preserve intact its current business organization, keep
available the services of its current officers and subject to the prudent
management of workforce needs, its employees and preserve its relationships with
customers, suppliers and others having business dealings with it. Without
limiting the generality of the foregoing, and except as otherwise contemplated
by this Agreement or as set forth in Section 4.1 of the Company Disclosure
Schedule, the Company shall not without the prior written consent of Purchaser:

                           (i)      directly or indirectly, amend its
Certificate of Incorporation or By-laws or similar organizational documents;

                           (ii)     (A) declare, set aside or pay any dividend
or other distribution payable in cash, stock or property with respect to the
Company's capital stock, (B) redeem, purchase or otherwise acquire directly or
indirectly any shares of any class or series of the Company's capital stock or
any instrument or security which consists of or includes a right to acquire such
shares; (C) issue, sell, transfer, pledge, dispose of or encumber any shares of
any class or series of the Company's capital stock or voting debt, or securities
convertible into or exchangeable for, or options, warrants, calls, commitments
or rights of any kind to acquire, any shares of any class or series of the
Company's capital stock or voting debt, other than (x) shares of Path 1 Class A
Common Stock and/or Path 1 Class B Common Stock issued upon the exercise of
options or other rights outstanding on the date hereof and (y) the issuance of
options to employees or consultants to the Company in the ordinary course of
business; or (D) split, combine or reclassify the outstanding capital stock of
the Company;

                           (iii)    acquire or agree to acquire by merging or
consolidating with, or by purchasing an equity interest in a substantial portion
of the assets of, or by any other manner, any business or any Person or other
business organization or division thereof;

                           (iv)     alter (through merger, liquidation,
reorganization, restructuring or in any other fashion), the corporate structure
or ownership of the Company;

                           (v)      make any new capital expenditures outside
the ordinary course of business;

                                       14

<PAGE>

                           (vi)     amend or terminate any material contract or
enter into any agreement which would constitute a material contract, except, in
any case, in the ordinary course of business consistent with past practice;
PROVIDED that any such amendment or termination does not have a Company Material
Adverse Effect, or waive, release or assign any material rights or claims;

                           (vii)    transfer, lease, license, sell or dispose of
any of their respective assets other than dispositions in the ordinary course of
business and consistent with past practice; PROVIDED that the fair market value
of assets sold does not exceed $100,000 in any single transaction or $500,000 in
the aggregate;

                           (viii)   mortgage, pledge or encumber any of their
respective assets, except, in any case, in the ordinary course of business
consistent with past practice; PROVIDED that any such actions would not have a
Company Material Adverse Effect.

                           (ix)     except the employment agreement to be
entered into between the Company and Michael T. Elliott, enter into any
employment or severance agreement with or grant any severance or termination pay
to any officer or director of the Company;

                           (x)      except in the ordinary and usual course of
business, as required to comply with Applicable Law or expressly provided in
this Agreement, (A) adopt, enter into, amend or increase the amount or
accelerate the payment or vesting of any benefit or award or amount payable
under, any Benefit Plan or other contract, agreement, commitment, arrangement,
plan, trust, fund or policy maintained by, contributed to or entered into by the
Company for the current or future benefit or welfare of any director, officer or
current or former employee, except to the extent necessary to coordinate any
such Benefit Plans with the terms of this Agreement, (B) increase in any manner
the compensation or fringe benefits of, or pay any bonus to, any director,
officer or employee or consultant of the Company (other than normal recurring
increases in wages to employees who are not officers or directors or Affiliates
in the ordinary course of business consistent with past practice), (C) pay any
benefit not provided for under any Benefit Plan, (D) grant any awards under any
bonus, incentive, performance or other compensation plan or arrangement or
Benefit Plan (including the grant of stock options, stock appreciation rights,
stock based or stock related awards, performance units or restricted stock, or
the removal of existing restrictions in any Benefit Plans or agreements or
awards made thereunder, except, in the case of stock grants or option grants to
employees of or consultants to the Company made in the ordinary course of
business) or (E) take any action to fund or in any other way secure the payment
of compensation or benefits under any employee plan, agreement, contract or
arrangement or Benefit Plan;

                           (xi)     (A) incur or assume any long term
indebtedness, or except in the ordinary course of business, incur or assume any
short term indebtedness in amounts inconsistent with past practice (provided,
that such short-term indebtedness outstanding does not exceed $25,000 at any
given time), (B) modify the terms of any indebtedness or other liability, except
as set forth in Section 4.1 of the Company Disclosure Schedule, (C) assume,
guarantee, endorse or otherwise become liable or responsible (whether directly,
contingently or otherwise) for the obligations of any other person (except for
checks endorsed for collection in the ordinary course of business) or (D) make
any loans, advances or capital contributions to, or investments

                                       15
<PAGE>

in, any other Person other than (x) travel and other expense advances to
employees in the ordinary course of business and (y) investments in publicly
traded securities constituting less than 1.0% of the outstanding equity of the
issuing entity);

                           (xii)    change any of the accounting methods used by
it unless required by GAAP;

                           (xiii)   make any material election relating to
Taxes, change any material election relating to Taxes already made, adopt any
material accounting method relating to Taxes, change any material accounting
method relating to Taxes unless required by GAAP, enter into any closing
agreement relating to Taxes, settle any claim or assessment relating to Taxes or
consent to any claim or assessment relating to Taxes or any waiver of the
statute of limitations for any such claim or assessment;

                           (xiv)    pay, settle, release, discharge or satisfy
any claims, liabilities or obligations (absolute, accrued, asserted or
unasserted, contingent or otherwise, including without limitation, the
Litigation), other than the payment or satisfaction of any such claims,
liabilities or obligations, in the ordinary course of business and consistent
with past practice, and of claims, liabilities or obligations reflected or
reserved against in, or contemplated by, the consolidated financial statements
(or the notes thereto) of the Company;

                           (xv)     amend in any material respect, renew,
terminate or cause to be extended any material lease, agreement or arrangement
relating to any of its leased properties or enter into any material lease,
agreement or arrangement with respect to any real property;

                           (xvi)    permit any insurance policy having the
Company as a beneficiary or a loss payable payee to be cancelled or terminated
unless comparable replacement coverage is obtained; and

                           (xvii)   take, or agree or commit to take, any action
that would or is reasonably likely to result in any of the conditions to the
consummation of the Transactions set forth in Article VI hereof not being
satisfied, or would make any representation or warranty of the Company contained
herein inaccurate in any respect at, or as of any time prior to, the Closing, or
that would materially impair the ability of the Company or Purchaser to
consummate the Transactions in accordance with the terms hereof or delay such
consummation.

                  4.2      ALTERNATIVE PROPOSALS.

                           (a)      Neither the Company nor any Affiliate shall
(and the Company shall use its reasonable best efforts to cause the officers,
directors, employees, representatives and agents of the Company, and each of its
Affiliates, including, but not limited to, investment bankers, attorneys and
accountants, not to), directly or indirectly, solicit, participate in,
encourage, or initiate discussions or negotiations with, or provide any
information to, any Person (other than Purchaser, any of its Affiliates or
representatives) concerning or which would reasonably facilitate or be expected
to lead to any Takeover Proposal, except that nothing contained in this Section
4.2 or any other provision hereof shall prohibit the Company or the Company's
Board of Directors from making such disclosure to the Company's stockholders as,
in the good faith judgment of the Company's Board of Directors, after receiving
advice from

                                       16
<PAGE>

outside counsel, is required under Applicable Law, provided that the Company may
not, approve or recommend, or propose to approve or recommend, any Takeover
Proposal, or enter into any letter of interest, agreement or other arrangement
with respect to any Takeover Proposal. Upon execution of this Agreement, the
Company will immediately cease any existing activities, discussions or
negotiations with any Persons conducted heretofore with respect to any of the
foregoing. Notwithstanding the foregoing, prior to the Closing, the Company may
furnish information concerning its business, properties or assets to any Person
or group and may negotiate and participate in discussions and negotiations with
such Person or group concerning a Takeover Proposal if: the Company's Board of
Directors determines in good faith, after consultation with outside legal
counsel that such action is necessary for it to comply with its fiduciary duty
under Applicable Law.

                  The Company will promptly notify Purchaser of the existence of
any proposal, discussion, negotiation or inquiry received by the Company
regarding any Takeover Proposal, and the Company will promptly communicate to
Purchaser the terms of any proposal, discussion, negotiation or inquiry which it
may receive (and will promptly provide to Purchaser copies of any written
materials received by the Company in connection with such proposal, discussion,
negotiation or inquiry) regarding any Takeover Proposal and the identity of the
party making such proposal or inquiry or engaging in such discussion or
negotiation. The Company will promptly provide to Purchaser any non-public
information concerning the Company provided to any other Person which was not
previously provided to Purchaser. The Company will keep Purchaser informed of
the status and details of any such Takeover Proposal and of any amendments or
proposed amendments to any Takeover Proposal and will promptly (but in no case
later than 24 hours) notify Purchaser of any determination by the Company's
Board of Directors that it is considering accepting a Takeover Proposal.

                  4.3      REASONABLE BEST EFFORTS.

                           (i)      Prior to the Closing, upon the terms and
subject to the conditions of this Agreement, Purchaser and the Company agree to
use their respective reasonable best efforts (x) to take, or cause to be taken,
all actions, and (y) to do, or cause to be done, all things necessary, proper or
advisable (subject to any Applicable Law) to consummate the Transactions as
promptly as practicable including, but not limited to (i) the preparation and
filing of all forms, registrations and notices required to be filed to
consummate the Transactions and the taking of such actions as are necessary to
obtain any requisite approvals, consents, orders, exemptions or waivers by any
third party or Governmental Entity and (ii) the satisfaction of the other
parties' conditions to effect the Transactions. In addition, no party hereto
shall take any action after the date hereof that would reasonably be expected to
delay the obtaining of, or result in not obtaining, any permission, approval or
consent from any Governmental Entity necessary to be obtained prior to the
Closing.

                           (b)      Prior to the Closing, subject to Applicable
Law, each party shall promptly consult with the other parties hereto with
respect to, provide any necessary information with respect to, and provide the
other parties (or their respective counsel) with copies of, all filings made by
such party with any Governmental Entity or any other information supplied by
such party to a Governmental Entity in connection with this Agreement, and the
Transactions. Each party hereto shall promptly inform the other parties of any
communication from any

                                       17
<PAGE>

Governmental Entity regarding any of the Transactions. If any party hereto or
Affiliate thereof receives a request for additional information or documentary
material from any such Governmental Entity with respect to any of the
Transactions, then such party shall endeavor in good faith to make, or cause to
be made, as soon as reasonably practicable and after consultation with the other
parties, an appropriate response in compliance with such request.

                           (c)      Notwithstanding the foregoing, nothing
contained in this Agreement shall be deemed to require the Company or Purchaser
to commence any litigation against any Person in order to facilitate the
consummation of any of the Transactions or, except for the Company, to defend
against any litigation brought by any Governmental Entity seeking to prevent the
consummation of any of the Transactions.

                  4.4      PURCHASER ACCESS TO INFORMATION. Upon reasonable
notice, the Company shall, afford to the officers, employees, accountants,
counsel, financing sources and other representatives of Purchaser, access,
during normal business hours during the period prior to the Closing, to all its
properties, books, contracts, commitments, records and employees and, during
such period, the Company shall (and shall cause its employees to), (1) furnish
promptly to Purchaser (a) a copy of each report, schedule, registration
statement and other document filed or received by it during such period pursuant
to the requirements of the federal securities laws and (b) all other information
concerning its business, properties and personnel as Purchaser may reasonably
request. Until the Closing, unless otherwise required by Applicable Law or in
order to comply with disclosure requirements applicable to any filings or
communications with Governmental Entities and stock exchanges, Purchaser will
hold any such information which is nonpublic in confidence.

                  4.5      PUBLICITY. The initial press release with respect to
the execution of this Agreement shall be a joint press release acceptable to
Purchaser and the Company. Thereafter, until the Closing or the date the
Transactions are terminated or abandoned, neither the Company, Purchaser nor any
of their respective Affiliates shall issue or cause the publication of any press
release or other announcement with respect to this Agreement or the other
Transactions without prior consultation with the other parties, except in order
to comply with fiduciary obligations or as may be required by Applicable law,
the rules and regulations of any national or other securities exchange or
over-the-counter market or by any listing agreement with a national or other
securities exchange or over-the-counter market.

                  4.6      NOTIFICATION OF CERTAIN MATTERS.The Company shall
give prompt notice to Purchaser of (i) the occurrence or non-occurrence of any
event known to the Company which would cause any representation or warranty of
the Company contained in this Agreement to be untrue or inaccurate in any
material respect at or prior to the Closing and (ii) any material failure of the
Company to comply with or satisfy any covenant, condition or agreement to be
complied with or satisfied by such Person hereunder; PROVIDED, HOWEVER, that the
delivery of any notice pursuant to this Section 4.6 shall not limit or otherwise
affect the remedies available hereunder to the party receiving such notice.

                           (b)      Purchaser shall give prompt notice to the
Company of (i) the occurrence or non-occurrence of any event known to Purchaser
which would cause any representation or warranty of Purchaser contained in this
Agreement to be untrue or inaccurate in

                                       18
<PAGE>

any material respect at or prior to the Closing and (ii) any material failure of
Purchaser to comply with or satisfy any covenant, condition or agreement to be
complied with or satisfied by it hereunder; PROVIDED, HOWEVER, that the delivery
of any notice pursuant to this Section 4.6 shall not limit or otherwise affect
the remedies available hereunder to the party receiving such notice.

                  4.7      STOCK EXCHANGE LISTINGS AND FORM 10. Purchaser shall
use its reasonable best efforts to promptly cause the Leitch Shares to be issued
pursuant to this Agreement to be approved for listing on The Toronto Stock
Exchange, subject to official notice of issuance, prior to the Closing, and, if
such listing shall not have occurred prior to the Closing, Purchaser shall use
its reasonable best efforts to cause such shares to be listed on The Toronto
Stock Exchange within 90 days after the Closing.

                           (b)      Purchaser shall use its reasonable best
efforts to cause the Leitch Shares to be issued pursuant to this Agreement to be
approved for listing on The Nasdaq Stock Market as soon as reasonably
practicable after the Closing.

                           (c)      The Company shall use its reasonable best
efforts to cause the Form 10 to be declared effective by the SEC as soon as
reasonably practicable after the Closing.

                  4.8      COMPANY DISCLOSURE SCHEDULE. The Company shall
deliver to Purchaser the Company Disclosure Schedule no later than 5:00 P.M.
(San Diego time) on April 14, 2000. Purchaser shall notify the Company of (a)
its acceptance of the Company Disclosure Schedule or (b) its rejection of the
Company Disclosure Schedule, in any case, within three (3) Business Days after
receipt thereof, provided, however, that Purchaser may reject the Company
Disclosure Schedule only in accordance with Section 6.2(viii) hereof.

                  4.9      REGISTRATION RIGHTS. In the event that the Leitch
Shares are not freely tradeable after 40 days after the date of issuance of the
Leitch Shares to the Company and the Company has used its best efforts to ensure
that the assumptions described above in Section 2.23 at the time of resale are
correct and the Company has used its best efforts to comply with the
requirements as set out in the legend in section 2.24, the Company, upon written
notice to Purchaser, may require Purchaser to use its reasonable best efforts to
qualify all, but not less than all, of the Leitch Shares for distribution in
Ontario (the "Distribution"), subject to the following terms and conditions:

                           (a)      Purchaser will so qualify the Leitch Shares
for Distribution by way of a secondary offering only, or if Purchaser shall
determine in its sole discretion, by way of a primary offering and secondary
offering.

                           (b)      The Company agrees that it will comply with
all regulatory requirements in connection with the Distribution and agrees to
furnish to Purchaser and any underwriters all necessary, normal and customary
documents and information required in connection with the Distribution.

                           (c)      The rights of the Company to qualification
pursuant to this Section shall be conditioned upon the Company's participation
in any underwriting relating to the Distribution. The Company shall (together
with Purchaser) enter into an underwriting agreement in normal and customary
form with the underwriter or underwriters selected by Purchaser.

                                       19
<PAGE>

Notwithstanding any provision of this Section, if the underwriter, in its sole
discretion, determines that marketing factors require a limitation of the number
of securities to be underwritten, the underwriter may exclude some or all of the
Leitch Shares for which the Company seeks qualification from inclusion in the
Distribution. The Company may not request Purchaser qualify some or all of the
Leitch Shares excluded from the Distribution under this Section 4.9(c) more than
once in any 12 month period.

                           (d)      If Purchaser shall furnish to the Company, a
certificate signed by the Chief Executive Officer of Purchaser stating that, in
the good faith judgement of the board of directors of Purchaser, it would be
seriously detrimental to Purchaser and its shareholders for the Leitch Shares to
be qualified for Distribution and it its therefore in the best interests of
Purchaser to defer the qualification of the Leitch Shares, then Purchaser may
delay the qualification of the Leitch Shares, once but not more than once, for a
period not in excess of one hundred twenty (120) days.

                           (e)      Purchaser shall have no obligation under
this Section 4.9 to qualify for distribution any Leitch Shares if Purchaser
shall deliver to the Company an opinion of its Canadian counsel to the effect
that the proposed sale or disposition for which qualification was requested does
not require qualification under applicable Ontario laws.

                           (f)      The costs and expenses (other than
underwriting discounts or commissions and fees and disbursements of counsel of
the Company) relating to the Distribution, and of all other actions that
Purchaser is required to take or effect pursuant to this Section 4.9, shall be
paid by Purchaser.

                                   ARTICLE V.
                                    CLOSING

                  5.1      TIME AND PLACE OF CLOSING. The closing of the
purchase and sale of the Path 1 Shares as set forth herein (the "Closing") shall
be held at the offices of Brobeck, Phleger & Harrison LLP, 12390 El Camino Real,
San Diego, California, 92130 at 10:00 A.M., local time, on the date specified in
writing by Purchaser to the Company on which all conditions precedent set forth
in Article VI have been satisfied, or at such other time and place as agreed to
in writing by Purchaser and the Company.

                  5.2      CLOSING DELIVERIES. On or prior to the Closing,

                           (a)      Purchaser shall have delivered, or cause to
be delivered to the Company, the following:

                                    (i)      the cash portion of the Purchase
Price, by wire transfer in immediately available funds to an account designated
by the Company;

                                    (ii)     a certificate representing the
Leitch Shares registered in the name of the Company;

                                       20
<PAGE>

                                    (iii)    a certificate of an officer of
Purchaser, in form and substance reasonably satisfactory to the Company and its
counsel, to evidence compliance with Section 6.3(i);

                                    (iv)     resolutions of the Board of
Directors of Purchaser and complete and correct copies of Purchaser's
certificate of incorporation and by-laws, or other charter documents, as
applicable, including all amendments, modifications or supplements thereto, to
evidence compliance with Section 6.3(ii), together with a certificate of an
officer of Purchaser; and

                                    (v)      the Stockholders' Agreement duly
executed by Purchaser on or before the Closing; and

                                    (vi)     such other documents as the Company
may reasonably request for the purpose of facilitating the consummation of the
Transactions.

                           (b)      the Company shall have delivered, or cause
to be delivered to Purchaser, the following:

                                    (i)      a certificate representing the Path
1 Shares registered in the name of Purchaser;

                                    (ii)     a certificate of an officer of the
Company, in form and substance reasonably satisfactory to Purchaser and its
counsel, to evidence compliance with Section 6.2(i);

                                    (iii)    the License Agreement duly executed
by the Company on or before the Closing;

                                    (iv)     resolutions of the Company's Board
of Directors and complete and correct copies of the Company's certificate of
incorporation and by-laws, including all amendments, modifications or
supplements thereto, to evidence compliance with Section 6.2(iii), together with
a certificate of an officer of the Company; and

                                    (v)      the Stockholders' Agreement duly
executed by the Company on or before the Closing;

                                    (vi)     the Company Disclosure Schedule in
form and substance reasonably satisfactory to Purchaser; and

                                    (vii)    such other documents as Purchaser
may reasonably request for the purpose of facilitating the consummation of the
Transactions.

                  5.3      DELIVERY OF PATH 1 SHARES. Delivery of the Path 1
Shares shall be made by the Company to Purchaser at the Closing by delivering
one or more certificates in negotiable form representing the Path 1 Shares, each
such certificate to be accompanied by any requisite documentary or stock
transfer taxes.

                                       21
<PAGE>

                  5.4      TAX MATTERS. All transfer, documentary, sales, use,
stamp, registration, value added and other such taxes and fees (including any
penalties and interest) incurred in connection with this Agreement shall be
borne and paid by the Company when due, and the Company will, at its own
expense, file all necessary tax returns and other documentation with respect to
all such taxes and fees, and, if required by applicable law, Purchaser will join
in the execution of any such tax returns and other documentation.

                                   ARTICLE VI.
            CONDITIONS TO THE PURCHASE AND SALE OF THE PATH 1 SHARES

                  6.1      CONDITIONS TO EACH PARTY'S OBLIGATIONS TO CLOSE. The
respective obligations of each party to consummate the Transactions are subject
to the satisfaction at or prior to the Closing of each of the following
conditions, any and all of which may be waived in whole or in part by the
Company or Purchaser, as the case may be, to the extent permitted by Applicable
Law:

                                    (i)      all regulatory approvals
required to consummate the Transactions shall have been obtained and are in
full force and effect; and

                                    (ii)     there shall not be in effect any
Applicable Law, executive order, decree, ruling or injunction or other order
of any Governmental Entity directing that the Transactions contemplated
herein not be consummated.

                  6.2      CONDITIONS TO THE OBLIGATIONS OF PURCHASER. The
obligations of Purchaser to consummate the Transactions are subject to the
satisfaction (or waiver by Purchaser in its sole discretion) of the following
further conditions:

                                    (i)      the Company shall have performed
in all material respects all of their obligations hereunder required to be
performed by it at or prior to the Effective Time, the representations and
warranties of the Company contained in this Agreement shall be true in all
material respects at and as of the Closing as if made at and as of such time,
and Purchaser shall have received a certificate signed by an executive
officer of the Company to the foregoing effect;

                                    (ii)     Purchaser shall have consummated
the transactions contemplated by the Berns Agreement;

                                    (iii)    Purchaser shall have received a
copy of the resolutions of the Company's Board of Directors authorizing the
Transactions, the Stockholders' Agreement (including the election of
Purchaser's nominees to the Company's Board of Directors and the amendment of
the Company's By-laws as required thereby) and the Licensing Agreement, and
complete and correct copies of the Company's certificate of incorporation and
by-laws, including all amendments, modifications or supplements thereto
(including the amendments to the By-laws contemplated by the Stockholders'
Agreement) which copies shall be certified by an executive officer of the
Company;

                                    (iv)     All litigation claims or
disputes set forth in, related to or arising out of the complaint filed by
the Company against James Berns and Rona Berns and other

                                       22
<PAGE>

defendants in San Diego County Superior Court on September 20, 1999 (Case No.
GIC 735665) including any cross-complaints filed by James Berns and Rona Berns
or others against the Company and the proceedings commenced by any of the
defendants in the Delaware Chancery Court on November 9, 1999, shall have been
settled or otherwise resolved and dismissed with prejudice in a manner and on
terms satisfactory to Purchaser in its sole discretion;

                                    (v)      the Company shall have entered
into the License Agreement on or before the Closing;

                                    (vi)     the Company shall have entered
into the Stockholders' Agreement (and shall have amended the By-laws in the
form attached as an exhibit thereto concurrently with the Closing) on or
before the Closing;

                                    (vii)    on or prior to the Closing,
Purchasers' two designees to be appointed to the Company's Board of Directors
in accordance with the provisions of the Stockholders' Agreement shall have
been so appointed;

                                    (viii)   Purchaser shall have received
the Company Disclosure Schedule in accordance with Section 4.8 hereof, in
which event such Company Disclosure Schedule shall be deemed accepted by
Purchaser and this condition to Closing shall be deemed satisfied; provided,
however, that the Company Disclosure Schedule shall not be deemed accepted
and this condition to Closing shall not be deemed satisfied to the extent it
contains, and only with respect to, disclosures (x) regarding the Company's
Registered Intellectual Property which would, individually or in the
aggregate, reasonably be expected to have a Company Material Adverse Effect
or (y) which would materially limit Purchaser from enjoying the benefits of
the License Agreement; and

                                    (ix)     Purchaser shall have completed
to its satisfaction its financial and legal due diligence of the Company.

                  6.3      CONDITIONS TO THE OBLIGATIONS OF THE COMPANY. The
obligations of the Company to consummate the Transactions are subject to the
satisfaction (or waiver by the Company in its sole discretion) of the following
further conditions:

                           (i)      Purchaser shall have performed in all
material respects all of its obligations hereunder required to be performed by
it at or prior to the Closing, the representations and warranties of Purchaser
contained in this Agreement shall be true in all material respects at and as of
the Closing as if made at and as of such time, and the Company shall have
received a certificate signed by an executive officer of Purchaser to the
foregoing effect;

                           (ii)     the Company shall have received a copy of
the resolutions of the Board of Directors of Purchaser authorizing the
Transactions, and complete and correct copies of Purchaser's certificate of
incorporation and by-laws, or other charter documents, as applicable, including
all amendments, modifications or supplements thereto which copies shall be
certified by an executive officer of Purchaser;

                                       23

<PAGE>

                           (iii)    Purchaser shall have entered into the
Stockholders' Agreement and the License Agreement, on or before the Closing; and

                           (iv)     all litigation claims or disputes set
forth in, related to or arising out of the complaint filed by the Company
against James Berns and Rona Berns in San Diego County Superior Court on
September 20, 1999 (Case No. GIC 735665) including any cross-complaints filed
by James Berns and Rona Berns against the Company and the proceedings
commenced by any of the defendants in the Delaware Chancery Court on November
9, 1999, shall have been settled or otherwise resolved and dismissed with
prejudice in a manner and on terms satisfactory to the Company.

                                  ARTICLE VII.
                                   TERMINATION

                  7.1      TERMINATION. This Agreement may be terminated and
the Transactions contemplated hereby may be abandoned at any time prior to
the Closing:

                           (i)      by mutual written consent of Purchaser
and the Company;

                           (ii)     by either the Company or Purchaser, if
the Closing has not occurred by June 30, 2000 (provided that the right to
terminate this Agreement under this clause shall not be available to any
party whose failure to fulfill any of its obligations under this Agreement
has been the cause of or resulted in the failure to consummate the
Transactions by such date);

                           (iii)    by either the Company or Purchaser, if
there shall be any Applicable Law that makes consummation of the Transactions
illegal or otherwise prohibited or if any judgment, injunction, order or
decree of a court of competent jurisdiction shall restrain or prohibit the
consummation of the Transactions, and such judgment, injunction, order or
decree shall become final and nonappealable;

                           (iv)     by either the Company or Purchaser, if
there has been a breach by the other party of any representation or warranty
contained in this Agreement which would have or would be reasonably likely to
have a Purchaser Material Adverse Effect or Company Material Adverse Effect,
as the case may be; or

                           (v)      by Purchaser if:

                                    (A)      there shall have been a material
breach of any provision of Section 4.2;

                                    (B)      any Person or "group" (within
the meaning of Section 13(d)(3) of the Exchange Act), other than Purchaser,
or its Affiliates or any group of which any of them is a member, shall have
acquired or announced its intention to acquire beneficial ownership (as
determined pursuant to Rule 13d-3 promulgated under the Exchange Act) of 25%
or more of the shares of Path 1 Class A Common Stock or of any other class of
voting capital stock of the Company; or

                                       24
<PAGE>

                               (C)      if the Company receives a Takeover
Proposal from any Person (other than Purchaser) and the Company's Board of
Directors shall have recommended or approved such Takeover Proposal or takes
a neutral position or makes no recommendation with respect to such Takeover
Proposal after a reasonable amount of time (and in no event more than ten
Business Days following such receipt) has elapsed for the Company's Board of
Directors to review and make a recommendation with respect to such Takeover
Proposal or the Company has entered into an agreement with respect to a
Takeover Proposal.

                  7.2      EFFECT OF TERMINATION. In the event of the
termination of this Agreement as provided in Section 7.1 hereof, written
notice thereof shall forthwith be given to the other party or parties
specifying the provision hereof pursuant to which such termination is made,
and this Agreement shall forthwith become null and void, and there shall be
no liability on the part of Purchaser, the Company or their respective
directors, officers, employees, representatives, agents, advisors or
stockholders other than the obligations pursuant to this Section 7.2, except
that the agreements contained in Article IX hereof shall survive the
termination hereof. Nothing contained in this Section 7.2 or in Article VIII
shall relieve any party from liability for fraud or for willful breach of
this Agreement.

                                  ARTICLE VIII.
                                 INDEMNIFICATION

                  8.1      INDEMNITY. Subject to the terms and conditions of
this Article VIII, from and after the Closing, the Company shall indemnify
and hold harmless Purchaser from and against any and all Damages resulting
from or arising out of any misrepresentation, breach or failure of any
representation or warranty made by the Company in this Agreement; and (b)
subject to the terms and conditions of this Article VIII, from and after the
Closing, Purchaser shall indemnify and hold harmless the Company from and
against any and all Damages resulting from or arising out of any
misrepresentation, breach or failure of any representation or warranty made
by Purchaser in this Agreement.

                  8.2      LIMITATION ON INDEMNITY

                           (a)      Neither the Company nor Purchaser shall
have liability for amounts payable pursuant to their respective
indemnification obligations in this Article VIII until the total of all
Damages incurred by Purchaser or the Company, respectively, exceeds Two
Hundred and Fifty Thousand Dollars (U.S. $250,000) in the aggregate (the
"Threshold Amount"), after which the indemnification obligations of the
Company or Purchaser, as the case may be, shall, subject to subsection (b)
below, only include all such Damages in excess of the Threshold Amount.

                           (b)      Neither the Company nor Purchaser shall
have liability pursuant to its indemnification obligations in this Article
VIII to the extent that the total of all Damages suffered by Purchaser or the
Company, respectively, exceeds an aggregate of Ten Million Dollars
($10,000,000).

                  8.3      PROCEDURE. With respect to any Damages, whether a
claim, the commencement of any proceeding, any written demand, or the
occurrence of any other

                                       25
<PAGE>

similar event, any of which may constitute a separate matter or series of
matters ("Indemnification Matter") against which Purchaser or the Company (such
applicable party referred to as the "Indemnitee") is indemnified under this
Article VIII:

                           (a)      Within 30 days after the Indemnitee
receives written notice pertaining to the demand or proceeding underlying
such Indemnification Matter, or, if such Indemnification Matter does not
involve a third party demand or claim, within 30 days after the Indemnitee
first has actual knowledge of such Indemnification Matter, the Indemnitee
shall give notice to the Company or Purchaser, as the case may be, of the
nature of such Indemnification Matter and the amount demanded or claimed in
connection therewith. Such notice shall be a condition precedent to any
indemnification liability under this Article VIII, but the Indemnitee shall
not lose its right to indemnification other than under this Article VIII as a
result of the failure to give such notice in a timely manner.

                  8.4      REMEDIES. Notwithstanding anything in this
Agreement to the contrary, following the Closing, the rights of
indemnification under this Article VIII are the sole and exclusive remedy of
Purchaser or the Company, as the case may be, with respect to any and all
matters covered in Section 8.1 above, except that, notwithstanding the
foregoing and Section 8.5 below, Purchaser or the Company, as the case may
be, shall be entitled to all remedies which are available under Applicable
Law for fraudulent conduct and under Section 10(b) of the Exchange Act and
the rules and regulations of the SEC thereunder.

                  8.5      TIME LIMIT. Damages to be indemnified under this
Article VIII must be claimed within one year after the Closing, except for
Damages resulting from or arising out of Indemnification Matters for which
proper notice under Section 8.3 above shall have been given prior to the
expiration of such one-year period.

                                  ARTICLE IX.
                            MISCELLANEOUS AND GENERAL

                  9.1      PAYMENT OF EXPENSES AND OTHER PAYMENTS.. All fees
and expenses incurred in connection with this Agreement and the Transactions
shall be paid by the party incurring such fees or expenses, whether or not
the Transactions are consummated.

                  9.2      SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The
representations and warranties made herein shall not survive beyond the
earlier of termination of this Agreement, subject to Section 8.5 above, or
one year from the date of Closing. This Section 9.2 shall not limit any
covenant or agreement of the parties hereto which by its terms contemplates
performance after the Closing.

                  9.3      MODIFICATION OR AMENDMENT. Subject to the
compliance with Applicable Law, at any time prior to the Closing, the parties
hereto may modify or amend this Agreement, by written agreement executed and
delivered by duly authorized officers of the respective parties.

                  9.4      WAIVER OF CONDITIONS. Except as otherwise provided
in this Agreement, any failure of any of the parties to comply with any
obligation, covenant, agreement or condition herein may be waived by the
party or parties entitled to the benefits thereof only by a written

                                       26
<PAGE>

instrument signed by the party granting such waiver, but such waiver or
failure to insist upon strict compliance with such obligation, covenant,
agreement or condition shall not operate as a waiver of, or estoppel with
respect to, any subsequent or other failure.

                  9.5      COUNTERPARTS. This Agreement may be executed in
two or more counterparts, all of which shall be considered one and the same
agreement and shall become effective when two or more counterparts have been
signed by each of the parties (including by telecopy) and delivered to the
other parties, it being understood that all parties need not sign the same
counterpart.

                  9.6      GOVERNING LAW. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of Delaware
without giving effect to the principles of conflicts of law thereof.

                  9.7      JURISDICTION; WAIVER OF TRIAL BY JURY. THE PARTIES
HERETO HEREBY IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY NEW YORK STATE OR
UNITED STATES FEDERAL COURT SITTING IN THE CITY OF NEW YORK OVER ANY ACTION
OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND HEREBY
IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY
BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL COURT. THE PARTIES
AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. THE PARTIES FURTHER WAIVE TRIAL BY
JURY, ANY OBJECTION TO VENUE IN SUCH STATE AND ANY OBJECTION TO ANY ACTION OR
PROCEEDING IN SUCH STATE ON THE BASIS OF FORUM NON CONVENIENS. THE PARTIES
FURTHER AGREE THAT ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT SHALL BE BROUGHT ONLY IN A NEW YORK STATE OR UNITED STATES
FEDERAL COURT SITTING IN NEW YORK COUNTY.

                  9.8      NOTICES. Any notice, request, instruction or other
document to be given hereunder by any party to the other parties shall be in
writing and delivered personally or sent by registered or certified mail,
postage prepaid, or by nationally recognized overnight courier, or by
telecopy, as follows:

                  If to the Company, to

                              3636 Nobel Drive
                              Suite 275
                              San Diego, California  92122
                              Attention:  Ronald D. Fellman
                              Telecopy:   (858) 450-4203

                                       27
<PAGE>

                  with a copy to:

                              Brobeck, Phleger & Harrison LLP
                              12390 El Camino Real
                              San Diego, California 92130
                              Attention:  Hayden Trubitt, Esq.
                              Telecopy:   (858) 720-2555

                  If to Purchaser, to

                              25 Dyas Road
                              North York, Ontario
                              Canada M3B 1V7
                              Attention:  Reg J. Tiessen
                              Telecopy:   (416) 445-4308

                  with a copy to:

                              Torys
                              237 Park Avenue
                              New York, New York  10017
                              Attention:  Bradley P. Cost, Esq.
                              Telecopy:   (212) 682-0200

                  All such notices and communications shall be deemed to have
been duly given at the time delivered by hand, if personally delivered, upon
receipt, if sent by telecopy, on the next Business Day, if sent by a
nationally recognized courier, or three (3) Business Days after being
deposited in the mail, if sent by registered or certified mail. Any party
may, upon written notice to the other parties hereto, change the address to
which notices or other communications to such party are to be delivered or
mailed.

                  9.9      ENTIRE AGREEMENT; ASSIGNMENT This Agreement (a)
constitutes the entire agreement among the parties with respect to the
subject matter hereof and supersedes all other prior agreements and
understandings, both written and oral, among the parties or any of them with
respect to the subject matter hereof and (b) shall not be assigned by
operation of law or otherwise without the prior written consent of the other
parties. This Agreement will be binding upon, inure to the benefit of and be
enforceable by the parties and their respective permitted successors and
assigns.

                  9.10     PARTIES IN INTEREST Nothing in this Agreement,
express or implied, is intended to or shall confer upon any other Person any
rights, benefits or remedies of any nature whatsoever under or by reason of
this Agreement.

                  9.11     VALIDITY If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void, unenforceable or against its regulatory
policy, the remainder of the terms, provisions, covenants and restrictions of
this Agreement shall remain in full force and effect and shall in no way be
affected, impaired

                                       28
<PAGE>

or invalidated so long as the economic or legal substance of the Transactions
is not affected in any manner materially adverse to any party.

                  9.12     CAPTIONS. The Article, Section and paragraph
captions herein are for convenience of reference only, do not constitute part
of this Agreement and shall not be deemed to limit or otherwise affect any of
the provisions hereof.

                  9.13     SPECIFIC PERFORMANCE. Each of the parties hereto
acknowledges and agrees that in the event of any breach of this Agreement,
each non-breaching party would be irreparably and immediately harmed and
could not be made whole by monetary damages. It is accordingly agreed that
the parties hereto (a) will waive, in any action for specific performance,
the defense of adequacy of a remedy at law and (b) shall be entitled, in
addition to any other remedy to which they may be entitled at law or in
equity, to compel specific performance of this Agreement in any action
instituted in a court of competent jurisdiction.

                  9.14     "KNOWLEDGE" OF THE COMPANY OR PURCHASER. For
purposes of this Agreement, unless otherwise expressly provided where the
term is used, "knowledge" of the Company, or Purchaser, as the case may be,
will be deemed to mean the actual knowledge of any director or executive
officer of the Company or Purchaser, as the case may be, after reasonable
inquiry.

                                   ARTICLE X.
                                   DEFINITIONS

                  10.1     CERTAIN DEFINITIONS. The following terms when used
herein shall have the meanings assigned to them below (certain other terms
are defined elsewhere herein):

                  "Actions" shall have the meaning set forth in Section 2.14
hereof.

                  "Affiliate" means a Person who directly, or indirectly
through one or more intermediaries, controls, or is controlled by, or is
under common control with, another person.

                  "Agreement" shall have the meaning set forth in the
recitals hereof.

                  "Applicable Law" shall mean the collective reference to any
federal, state, local, provincial or foreign law, rule, regulation,
ordinance, writ, judgment, injunction, decree, determination, award or other
order of any Governmental Authority or stock exchange, in each case excluding
any and all Environmental Laws.

                  "Balance Sheet" shall have the meaning set forth in Section
2.4(c) hereof.

                  "Benefit Plan" shall have the meaning set forth in Section
2.11 hereof.

                  "Berns Agreement" shall mean the Stock Purchase Agreement,
dated as of March 10, 2000, by and among Purchaser, James Berns and Rona
Berns, together with any amendment or supplement thereto.

                                       29
<PAGE>

                  "Business Day" shall mean a day other than a Saturday or
Sunday or other day on which commercial banks in New York, New York are
authorized or required to close."

                  "Code" shall mean the Internal Revenue Code of 1986, as
amended.

                  "Company Board" shall have the meaning set forth in Section
2.20 hereof.

                  "Company Disclosure Schedule" shall have the meaning set
forth in Section 2.1 hereof.

                  "Company Material Adverse Effect" shall mean any change,
circumstance or fact that (i) is reasonably likely to be materially adverse
to the business, condition (financial or otherwise) or results of operations
of the Company provided that the term "Company Material Adverse Effect" as
used herein shall not include any effect attributable to (a) changes in the
economy generally or (b) changes or circumstances affecting the industries in
which the Company engages, which change, circumstance or effect (in the case
of clause (b)) does not affect the Company, disproportionately relative to
other entities operating in such industries, or (ii) would materially impair
the ability of the Company to perform its obligations under this Agreement.

                  "Damages" shall mean all losses, liabilities, damages,
costs and expenses (including, without limitation, reasonable attorneys' fees
(including those incurred in connection with a dispute among the parties (or
any of them) hereto), investigation expenses, court costs, interest and
penalties) actually incurred in connection with any matter for which
indemnification is provided under Article VIII hereof.

                  "ERISA"  shall have the meaning set forth in Section
2.11(a) hereof.

                  "Exchange Act" shall have the meaning set forth in Section
2.4(a) hereof.

                  "Form    10" shall have the meaning set forth in Section
2.4(a) hereof.

                  "GAAP"   shall have the meaning set forth in Section 2.4(b)
hereof.

                  "Governmental Authority" or "Governmental Entity" shall
mean the collective reference to any court, administrative agency, tribunal,
authority, commission or other foreign or domestic, whether federal, state,
provincial or local governmental authority or instrumentality.

                  "Indemnification Matter" shall have the meaning set forth
in Section 8.3 hereof.

                  "Indemnitee" shall have the meaning set forth in Section
8.3 hereof.

                  "License Agreement" shall mean that certain Joint Product
Development and License Agreement between Purchaser and the Company to be
executed on or before the Closing in form and substance mutually agreed upon
by Purchaser and the Company.

                  "Lien" shall mean any mortgage, pledge, encumbrance, charge
or other security interest of any kind or nature whatsoever.

                                       30
<PAGE>

                  "Other Intellectual Property" shall have the meaning set
forth in Section 2.17 hereof.

                  "Path 1 Class A Common Stock" shall have the meaning set
forth in the recitals hereof.

                  "Path 1 Class B Common Stock" shall have the meaning set
forth in Section 2.3 hereof.

                  "Permits" shall have the meaning set forth in Section
2.15(b) hereof.

                  "Permitted Liens" shall mean:

                  (a)      Liens for Taxes not yet due or which are being
contested in good faith by appropriate proceedings, provided that adequate
reserves with respect to contested Taxes are maintained on the books of the
Company or Purchaser, as applicable;

                  (b)      pledges or deposits made in the ordinary course of
business in connection with workers' compensation, unemployment insurance and
other social security legislation;

                  (c)      easements, rights-of-way, restrictions and other
similar encumbrances previously incurred in the ordinary course of business
which, in respect of properties or assets of the Company or Purchaser or any
Purchaser Subsidiary, as applicable, are not material, and which, in the case
of such encumbrances on the assets or properties of the Company or Purchaser
or any Purchaser Subsidiary, as applicable, do not materially detract from
the value of any such properties or assets or materially interfere with any
present use of such properties or assets;

                  (d)      carriers', warehousemen's, mechanics',
materialmen's, repairmen's or other like Liens arising in the ordinary course
of business which are not overdue for a period of more than 90 days or which
are being contested in good faith by appropriate proceedings;

                  (e)      deposits to secure the performance of bids,
contracts (other than for borrowed money), leases, statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business;

                  (f)      statutory and contractual Liens on the property of
the Company or Purchaser or any Purchaser Subsidiary, as applicable, in favor
of landlords securing leases; and

                  (g)      Liens in existence at the Effective Time listed in
Section 2.9 to the Company Disclosure Schedule.

                  "Person" means an individual, a corporation, a partnership,
an association, a trust or any other entity or organization, including a
government or political subdivision or any agency or instrumentality thereof.

                  "Purchaser" shall have the meaning set forth in the
recitals hereof.

                                       31
<PAGE>

                  "Purchaser Material Adverse Effect" shall mean any change,
circumstance or fact that (i)is reasonably likely to be materially adverse to
the business, condition (financial or otherwise) or results of operations of
Purchaser and its subsidiaries, taken as a whole, provided that the term
"Purchaser Material Adverse Effect" as used herein shall not include any
effect attributable to (a) changes in the economy generally or (b) changes or
circumstances affecting the industries in which Purchaser and its
subsidiaries engage, which change, circumstance or effect (in the case of
clause (b)) does not affect Purchaser disproportionately relative to other
entities operating in such industries, or (ii) would materially impair the
ability of Purchaser to perform its obligations under this Agreement.

                  "Registered Intellectual Property" shall have the meaning
set forth in Section 2.17 hereof.

                  "SEC" shall have the meaning set forth in the Section
2.4(a) hereof.

                  "Stockholders' Agreement" shall mean that certain
Stockholders' Agreement by and among the Company, Purchaser, Ronald D.
Fellman, Douglas A. Palmer and Michael T. Elliott to be executed on or before
the Closing in the form of Exhibit A hereto.

                  "Takeover Proposal" means any bona fide proposal or offer,
whether in writing or otherwise, from any Person (other than Purchaser or any
Affiliates thereof) (a "Third Party") to acquire beneficial ownership (as
determined pursuant to Rule 13d-3 promulgated under the Exchange Act) of all
or a material portion of the assets of the Company or 25% or more of any
class of equity securities of the Company pursuant to a merger, consolidation
or other business combination, sale of shares of capital stock, sale of
assets, tender offer, exchange offer or similar transaction with respect to
the Company, including any single or multi-step transaction or series of
related transactions, which is structured to permit such Third Party to
acquire beneficial ownership of any material portion of the assets of or 25%
or more of the equity interest in the Company.

                  "Taxes" shall have the meaning set forth in Section 2.7
hereof.

                  "Tax Returns" shall have the meaning set forth in
Section 2.7 hereof.

                  "Transactions" shall have the meaning set forth in Section
2.2 hereof.

                                     * * *

                                       32
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of
the day and year first above written.

                                       PATH 1 NETWORK TECHNOLOGIES INC.

                                       By: /s/ Vera Moldt
                                           ----------------------------
                                           Name:
                                           Title:

                                       LEITCH TECHNOLOGY CORPORATION

                                       By: /s/ John A. MacDonald
                                           ----------------------------
                                           Name:
                                           Title:

                                       By: /s/ Reginald J. Tiessen
                                           ----------------------------
                                           Name:
                                           Title:

                                       33

<PAGE>

                          COMPANY DISCLOSURE SCHEDULE

         Inclusion of information on this Company Disclosure Schedule does not
constitute an admission by the Company that the information is material. The
Company's approach has been to try to err on the side of over-inclusiveness and
over-disclosure.

SECTION 2.1

The Company is not qualified to do business as a foreign corporation in
California. The Company intends to become qualified forthwith and does not
believe that any past or future non-qualification would cause a Company Material
Adverse Effect.

On March 16, 1998, the Company entered into an agreement with Jyra Research,
Inc. ("Jyra") providing for the Company to make a strategic investment in Jyra
and for Jyra to make a strategic investment in the Company. Under this
agreement, the Company exchanged ten shares of its Series A Preferred Stock for
16,000 restricted common shares of Jyra, which the Company still holds.

SECTION 2.3

On April 10, 2000, the Board approved Michael Elliott as its Chief Executive
Officer. In connection with that, Mr. Elliott will receive options to purchase
up to 400,000 shares of the Company's Class B Common Stock.

The Company is contemplating hiring [****] to become its Chief
Financial Officer. In connection with that, the Company may grant [****]
options to purchase up to 250,000 shares of Class B Common Stock.

The Company has made informal commitments to grant options to purchase up to
approximately 50,000 shares of Class B Common Stock to certain current or future
employees, consultants, and/or advisors of the Company.

The Company may sell up to another $5 million of its Class A Common Stock to
certain investors before its ongoing stock offering is completed.

SECTION 2.4

The Company may have a material liability or obligation with respect to the
pending and threatened litigation involving Mr. Felber (including for
indemnification of individuals sued or threatened by him).

Note also Michael and James Berns'claim for indemnification and advancement of
expenses.

<PAGE>

SECTION 2.6

The Company's Form 10 (general form for registration of securities under the
Securities Exchange Act of 1934) has not been declared effective. As a result,
as of March 2000, the Company's securities have been removed from the OTC
Bulletin Board.

The Company has received $3.8 million pursuant to subscription agreements for
its Class A Common Stock.

The Company has also received a subscription agreement for 125,000 shares of its
Class A Common Stock at $8 per share.

The Company may sell up to another $5 million of its Class A Common Stock to
certain investors before its ongoing stock offering is completed.

See the Section 2.4 disclosure.

SECTION 2.7

The Company failed to timely pay its annual Delaware state franchise tax for
fiscal year 1999. The Company has directed its outside tax advisor to file, with
payment, the necessary documentation as promptly as possible.

SECTION 2.10

Lease Agreement between the Company and Spieker Properties, L.P. dated April 10,
1999.

Agreement with Doctor Design, Inc. dated June 4, 1999.

The Company is negotiating a proposed agreement with [****].

Berns Settlement Agreement dated April 2000.

The Company has also received a subscription agreement for 125,000 shares of its
Class A Common Stock at $8 per share.

SECTION 2.11

The Company maintains a medical and dental plan.

The Company has a stock option plan.

SECTION 2.14

<PAGE>

The Company and its indemnifiable officials are being sued and threatened by Mr.
Felber. Note also Michael and James Berns' claim in Delaware for indemnification
and advancement of expenses.

SECTION 2.15

The Company does not have any permits, certificates or other authorization from
the Federal Communications Commission, Underwriters Laboratories or any European
Union agency which may be required in order to sell certain products.

As of March 2000, the Company's securities have been removed from the OTC
Bulletin Board, which does not relate directly to the conduct of the Company's
business

SECTION 2.16

--------------------------------------------------------------------------------
                         PENDING TRADEMARKS AND PATENTS
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

------------------- ---------------------------------- -------------- ----------------------- ---------------
      MATTER                                              FILING
       TYPE                       TITLE                    DATE          APPLICATION NO.          STATUS
------------------- ---------------------------------- -------------- ----------------------- ---------------
<S>                 <C>                                <C>            <C>                     <C>
Trademark           TRUECIRCUIT                          12/11/98     75/605,234              Pending
------------------- ---------------------------------- -------------- ----------------------- ---------------
Trademark           DOTCAM                               11/29/99     75/859,744              Pending
------------------- ---------------------------------- -------------- ----------------------- ---------------
Patent (U.S.)       [****]                               12/29/98     [****]                  Pending
------------------- ---------------------------------- -------------- ----------------------- ---------------
Patent (PCT)        [****]                                11/3/99     [****]                  Pending
------------------- ---------------------------------- -------------- ----------------------- ---------------
Patent (U.S.)       Methods and Apparatus for             8/19/98     [****]                  Pending
                    [****]
------------------- ---------------------------------- -------------- ----------------------- ---------------
Patent (PCT)        Methods and Apparatus for             8/18/99     [****]                  Pending
                    [****]
------------------- ---------------------------------- -------------- ----------------------- ---------------
Patent (U.S.)       Methods and Apparatus for            12/31/98     [****]                  Pending
                    [****]
------------------- ---------------------------------- -------------- ----------------------- ---------------

</TABLE>

None of the above are "valid and in full force and effect," because they are
merely applications. They are valid and legitimate applications.

<PAGE>

SECTION 2.22 (RELATING TO SECTION 2.21)

Michael Elliott, as Chief Executive Officer, will receive an employment
agreement and options to purchase up to 400,000 shares of the Company's Class B
Common Stock.

The Company may hire [****] to become its Chief Financial Officer. In
connection with that, the Company may grant [****] options to purchase up
to 250,000 shares of Class B Common Stock.

The Company has made informal commitments to grant options to purchase up to
approximately 50,000 shares of Class B Common Stock to certain current or future
employees, consultants, and/or advisors of the Company.

The Company has a stock option plan.<PAGE>

                             STOCKHOLDERS AGREEMENT

                                  BY AND AMONG

                        PATH 1 NETWORK TECHNOLOGIES INC.,

                         LEITCH TECHNOLOGY CORPORATION,

                               RONALD D. FELLMAN,

                                DOUGLAS A. PALMER

                                       AND

                               MICHAEL T. ELLIOTT

                           Dated as of April 10, 2000

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               PAGE
<S>                                                                                                           <C>
1.       Certain Definitions......................................................................................1

2.       Composition of Board of Directors; Committees; Directors'Expenses........................................3

3.       Right of First Refusal...................................................................................4

4.       Purchasers or Transferees of Common Stock................................................................6

5.       Elliott Put Option.......................................................................................7

6.       Right of Subscription for New Securities.................................................................8

7.       Registration of the Securities...........................................................................9

8.       Standstill..............................................................................................16

9.       Legend and Compliance with Securities Laws..............................................................17

10.      Amendment to By-Laws....................................................................................17

11.      Termination of this Agreement...........................................................................18

12.      Notices.................................................................................................18

13.      Counterparts............................................................................................20

14.      Entire Agreement........................................................................................20

15.      Governing Law...........................................................................................20

16.      Jurisdiction; Waiver of Trial by Jury...................................................................20

17.      Headings................................................................................................20

18.      Severability............................................................................................20

19.      Binding Effect..........................................................................................21

20.      Construction............................................................................................21

21.      Effectiveness...........................................................................................21
</TABLE>

<PAGE>

                             STOCKHOLDERS AGREEMENT

                  STOCKHOLDERS AGREEMENT dated as of April 10, 2000 (this
"Agreement") among Path 1 Network Technologies Inc., a Delaware corporation
(the "Corporation"), Leitch Technology Corporation, a corporation organized
under the laws of the Province of Ontario ("Leitch"), Michael T. Elliott
("Elliott"), Ronald D. Fellman ("Fellman") and Douglas A. Palmer ("Palmer";
Fellman and Palmer being hereinafter together referred to as the "Management
Stockholders", and together with Leitch and Elliott, the "Stockholders").

                              W I T N E S S E T H:

                  WHEREAS, pursuant to and upon the closing of the
transactions contemplated by that certain Stock Purchase Agreement of even
date herewith (the "Purchase Agreement") by and among Leitch and the
Corporation, Leitch will acquire 1,250,000 shares of Class A Common Stock,
$.001 par value per share (the "Common Stock") of the Corporation (such
1,250,000 shares being hereinafter referred to as the "Purchased Shares")
(the date of the closing under the Purchase Agreement is hereinafter referred
to as the "Effective Date");

                  WHEREAS, Fellman and Palmer beneficially own 1,148,720 and
224,000 shares of Common Stock of the Corporation, respectively (together
with any additional shares of Common Stock so held after the date hereof, the
"Management Shares");

                  WHEREAS, Elliott owns options to purchase 15,000 shares of
Class B Common Stock of the Corporation (together with any additional shares
of Common Stock and/or Class B Common Stock beneficially held after the date
hereof, the "Elliott Shares");

                  WHEREAS, on March 10, 2000, Leitch entered into a Stock
Purchase Agreement, as amended (the "Berns Agreement"), with James Berns and
Rona Berns to acquire 1,655,000 shares of Common Stock (the "Berns Shares,"
together with the Purchased Shares and any additional shares of Common Stock
so held after the date hereof, the "Leitch Shares"); and

                  WHEREAS, from and after the Effective Date, the parties
hereto deem it in the best interests of the Corporation to provide for
continuity in the control and operation of the Corporation and to address
certain other matters, all as herein provided.

                  NOW, THEREFORE, in consideration of the mutual benefits to
be derived and the conditions and promises herein contained, and intending to
be legally bound hereby, the parties hereto agree as follows, which
agreements shall automatically become effective only in accordance with
Section 21 hereof:

                  1.       CERTAIN DEFINITIONS. For purposes of this
Agreement, unless the context otherwise requires, the following terms shall
have the following respective meanings:

                  "Affiliate" shall mean any person or entity which directly
or indirectly controls, is controlled by or is under common control with such
person or entity. For purposes hereof, the terms "control" and "controlled
by" mean the possession, directly or indirectly, of the power to

<PAGE>

direct or cause the direction of the management or policies of a person or
entity, whether through the ownership of voting securities, by contract
(written or oral) or otherwise.

                  "Berns Agreement" shall have the meaning set forth in the
recitals to this Agreement.

                  "Board of Directors" or "Board" shall mean the board of
directors of the Corporation.

                  "By-laws" shall mean the by-laws of the Corporation.

                  "Certificate of Incorporation" shall mean the certificate
of incorporation of the Corporation.

                  "Class B Common Stock" shall mean the Corporation's Class B
Common Stock, par value $.001 per share.

                  "Corporation" shall have the meaning as set forth in the
recitals to this Agreement.

                  "Commission" shall mean the Securities and Exchange
Commission.

                  "Competing Offer" shall have the meaning as set forth in
Section 3(d) hereof.

                  "Dispose" or "Disposition" in connection with any Security
shall mean a sale, assignment, gift, pledge, mortgage, hypothecation or any
other transfer of, including, without limitation, the transfer by
testamentary gift, the imposition of any lien or encumbrance on or the grant
of any interest in or right to acquire any Securities or any interest
therein, whether occurring voluntarily or involuntarily, directly or
indirectly, or by operation of law or otherwise.

                  "Elliot Put Shares" shall mean the outstanding shares of
Common Stock held by Elliot from time to time.

                  "Elliott Shares" shall have the meaning as set forth in the
recitals to this Agreement.

                  "Management Stockholders" shall have the meaning set forth
in the recitals to this Agreement.

                  "New Securities" shall have the meaning as set forth in
Section 6(b) hereof.

                  "Public Transferee" shall have the meaning set forth in
Section 3(e) hereof.

                  "Registration Shares" shall have the meaning as set forth
in Section 7(a) hereof.

                  "Requested Registration Shares" shall have the meaning as set
forth in Section 7(a) hereof.

                                       2
<PAGE>

                  "Rule 144" shall mean shall mean Rule 144 as promulgated by
the Commission under the Securities Act, as such Rule may be amended from
time to time, or any similar successor rule that may be promulgated by the
Commission.

                  "Securities" shall mean the shares of the Common Stock of
the Corporation from time to time held beneficially or owned of record by the
Stockholders and any additional "equity securities" (as such term is defined
under the Securities Exchange Act of 1934, as amended) of the Corporation or
any successor to the business and assets of the Corporation (by purchase,
merger or otherwise) at any time issued to or acquired by the Stockholders,
or any of them, including without limitation, in connection with any
reorganization, reclassification, stock split, stock dividend or stock
distribution, or upon exercise of any stock subscription, option, right or
warrant or of any conversion rights inherent in any securities, in any case,
whether owned on the date hereof or hereafter acquired by any Stockholder.

                  "Securities Act" shall have the meaning set forth in
Section 7(a) hereof.

                  "Securities Exchange Act" shall have the meaning set forth
in Section 7(k) hereof.

                  "Seller's Shares" shall have the meaning as set forth in
Section 3(a) hereof.

                  "Selling Stockholder" shall have the meaning as set forth
in Section 3(a) hereof.

                  "Stockholders" shall mean, without duplication, each
Management Stockholder, Leitch, and Elliott.

                  "Strategic Entity" shall have the meaning set forth in
Section 6(b) hereof.

                  "Strategic Event" shall have the meaning set forth in
Section 6(d) hereof.

                  "Strategic Transaction" shall have the meaning set forth in
Section 6(b) hereof.

                  "Transferee" shall have the meaning set forth in Section 4
hereof.

                  2.       COMPOSITION OF BOARD OF DIRECTORS; COMMITTEES;
DIRECTORS' EXPENSES.

                           (a)      Each of the Management Stockholders,
Elliott and each Transferee (other than a Public Transferee) of any of such
persons, covenant and agree that in any election of directors of the
Corporation, including by written consent, they shall, for so long as Leitch
or any Affiliate of Leitch holds a number of the outstanding voting equity
securities and Class B Common Stock of the Corporation representing at least
20% of the number of all issued and outstanding voting equity securities and
Class B Common Stock of the Corporation (assuming the issuance of all voting
equity securities and Class B Common Stock of the Corporation issuable
pursuant to then outstanding warrants, options, convertible or exchangeable
securities and other rights to acquire voting equity securities and Class B
Common Stock of the Corporation from the Corporation), vote all voting
Securities of the Corporation owned or controlled by them in favor of a Board
of Directors of the Corporation whose members shall include designees of
Leitch who constitute 2/7th of the entire Board of Directors (rounded up or
down to the nearest whole Board member (with 0.5 or greater being rounded
up)); it being

                                       3
<PAGE>

understood and agreed that such Board of Directors shall consist initially of
seven (7) members, of which initially two (2) shall be designated by Leitch;
it being further understood and agreed that, in the event that Leitch or any
Affiliate of Leitch acquires Management Shares pursuant to Section 3 hereof
and/or Elliott Put Shares pursuant to Section 5 hereof, Leitch shall be
entitled to appoint, and such persons shall vote any and all voting
Securities of the Corporation owned or controlled by them for, that number of
directors which will result in Leitch having Board representation which is
commensurate with the percentage ownership of the issued and outstanding
voting equity securities and Class B Common Stock of the Corporation owned by
Leitch (rounded up or down to the nearest whole board member (with 0.5 or
greater being rounded up)).

                           (b)      In the event of any vacancy in the Board
of Directors of the Corporation occurring for any reason, each of the
Management Stockholders, Elliott and each Transferee (other than a Public
Transferee) of such person covenant and agree to vote all voting Securities
of the Corporation owned or controlled by him or it and otherwise to use his
or its best efforts to fill the vacancy in such a manner that the Board of
Directors of the Corporation will consist of directors designated in
accordance with the provisions of subsection (a) above. In addition to the
foregoing, in the event that at any time Leitch determines to replace or
remove any or all of its designees to the Board of Directors of the
Corporation, each of the Management Stockholders, Elliott and each Transferee
(other than a Public Transferee) of such person covenant and agree to vote
all voting Securities of the Corporation owned or controlled by him or it for
such replacement or removal and for the replacement designee(s) of Leitch in
accordance with the terms of this Section 2 and otherwise to use his or its
best efforts to effect such a replacement or removal and replacement.

                           (c)      The Corporation hereby agrees to use its
best efforts to cause such designated candidates, pursuant to subsection (a)
above, and replacements, pursuant to subsection (b) above, to be elected to
the Board of Directors of the Corporation and to recommend that the
stockholders of the Corporation approve and elect such designated candidates.

                           (d)      The parties hereto agree to use their
respective best efforts to cause each committee formed by the Board of
Directors of the Corporation to include at least one (1) designee of Leitch.

                           (e)      For purposes of this Section 2, the
parties hereto agree that the initial Board of Directors of the Corporation
after the Effective Date shall be as follows:

Michael T. Elliott, Ronald D. Fellman; Douglas A. Palmer, Archie Adams, and
Paul Robinson and, as the nominees of Leitch, John A. MacDonald and Reg J.
Tiessen.

                  3.       RIGHT OF FIRST REFUSAL.

                           (a)      Until the occurrence of a Strategic
Event, whenever and as often as any of the Management Stockholders or any of
the Transferees (other than Public Transferees) of such persons (each, a
"Selling Stockholder") shall desire to Dispose of any Securities pursuant to
a bona fide offer for the purchase or other acquisition thereof in a private
transaction with a

                                       4
<PAGE>

person or entity not an Affiliate of the Selling Stockholder, the Selling
Stockholder shall give written notice (the "Notice") to Leitch and to the
secretary of the Corporation to such effect, enclosing a copy of such bona
fide offer (it being agreed that the Selling Stockholder shall cause any such
offer to be reduced to a writing between the Selling Stockholder and the
prospective acquirer) and specifying the number of Securities which the
Selling Stockholder desires to Dispose of (collectively, the "Seller's
Shares"), the name of the person or entity to whom the Selling Stockholder
desires to make such Disposition and the dollar value of the consideration
which has been offered in connection therewith. Upon receipt of the Notice,
Leitch shall have the first right and option (the "Right of First Refusal")
to purchase all, but not less than all, of the Seller's Shares, at a purchase
price equal to the dollar value of such consideration (in the event such
consideration includes non-cash consideration, the dollar value of such
non-cash consideration shall be determined by an independent third-party who
shall be mutually agreed upon by Leitch and the transferring Management
Stockholder, whose good faith determination shall be conclusive and whose
reasonable fees and expenses shall be paid by the Corporation) exercisable
for a period of ten (10) days from the later of the date of receipt by Leitch
of the Notice or the date of receipt of the independent third-party
determination of value, if any, contemplated by this sentence (the "Notice
Period"). In the event that such offer includes consideration payable other
than in cash, in connection with the exercise of the Right of First Refusal
hereunder, Leitch may pay the non-cash portion of the purchase price
hereunder by paying the cash equivalent of such non-cash consideration, as so
determined in good faith by such independent third-party. Failure of Leitch
to respond to the Notice within the Notice Period shall constitute a
notification to the Selling Stockholder of Leitch's decision not to exercise
the Right of First Refusal under this Section 3(a).

                           (b)      Leitch shall exercise the Right of First
Refusal, if at all, by giving written notice to the Selling Stockholder and
the secretary of the Corporation not later than the close of business on the
final day of the Notice Period (or if such date is not a business day, then
on or before the close of business on the next succeeding business day),
advising of the election to exercise the same and the date (not later than
five (5) business days after the expiration of the Notice Period) upon which
payment of the purchase price for the Seller's Shares to be purchased by
Leitch shall be made. The Selling Stockholder shall cause to be delivered to
Leitch at Leitch's principal executive office, on the payment date specified
in such notice, the certificate or certificates representing the Seller's
Shares to be purchased by Leitch, properly endorsed for transfer, together
with all necessary transfer and documentary stamps affixed thereto and
together with a certificate signed by the Selling Stockholder or the personal
representative or executor of the estate of the Selling Stockholder to the
effect that the Securities being transferred are free and clear of all liens,
encumbrances or rights of third parties of every nature whatsoever, against
payment of the purchase price therefor by Leitch.

                           (c)      If all the Seller's Shares are not
purchased by Leitch in accordance with this Section 3, the Selling
Stockholder (i) shall not be required to sell any of the Seller's Shares to
Leitch and (ii) may, during the 90-day period commencing on the expiration of
the Right of First Refusal, sell all (but not less than all) of the Seller's
Shares to the transferee named in the Notice for a consideration the dollar
value of which is equal to or greater than the dollar value of the
consideration specified in the Notice, free of the restrictions contained in
this Section 3 (but subject to the other terms and conditions hereof).

                                       5
<PAGE>

                           (d)      Any attempted Disposition or issuance of
securities other than in accordance with this Agreement (other than
involuntary transfers or transfers by operation of law), including, without
limitation, in violation of this Section 3 or Section 6 hereof, shall be null
and void and the Corporation shall refuse to recognize any such Disposition
or issuance and shall not reflect on its records any change in the record
ownership of any securities, as applicable, pursuant to any such Disposition
or issuance.

                           (e)      Notwithstanding the foregoing, if a
Strategic Event has occurred, the Right of First Refusal shall cease.
However, if after the occurrence of a Strategic Event, a Selling Stockholder
desires to Dispose of Securities pursuant to a bona fide offer for the
purchase or other acquisition thereof in a private transaction with a person
or entity not an Affiliate of the Selling Stockholder, the Selling
Stockholder shall deliver the Notice containing the information prescribed by
Section 3(a) to Leitch and the secretary of the Corporation. Upon receipt of
such Notice, Leitch shall be given the opportunity for a period of ten (10)
days from the date of receipt of the Notice (the "Competing Offer Period"),
to make an offer (the "Competing Offer") to purchase the Seller's Shares.
Upon receipt by the Selling Stockholder of any Competing Offer, the Selling
Stockholder shall notify Leitch, within five (5) business days after the
expiration of the Competing Offer Period, that the Selling Stockholder
intends to accept the Competing Offer. Failure of the Selling Stockholder to
respond to the Notice within the Notice Period shall constitute a rejection
of the Competing Offer. In the event that the Selling Stockholder accepts the
Competing Offer, Leitch shall purchase the Seller's Shares in accordance with
the procedures set forth in Section 3(b) above. If Leitch fails to make a
Competing Offer to the Selling Stockholder within the Competing Offer Period,
the Selling Stockholder may Dispose of the Seller's Shares, in accordance
with and subject to clause 3(b)(ii) above. For purposes of this Section 3, a
Strategic Event shall have occurred if (x) a Strategic Entity, in a single
transaction, purchases Common Stock or other equity securities of the
Corporation for at least U.S. $6,000,000 or (y) the Corporation shall have
achieved during any twelve-month trailing period at least U.S. $30,000,000 of
gross revenues as determined in accordance with generally accepted accounting
principles ("GAAP") and as reflected in the financial statements of the
Corporation.

                           (f)      Notwithstanding the foregoing, the
provisions of this Section 3 shall not apply and Leitch shall have no rights
under this Section 3, with respect to a sale of any Securities by any of the
Management Stockholders or any Transferees of any of them in a block trade,
to a market maker for the Securities or in an open market transaction,
whether such open market transaction is effected pursuant to Rule 144 of the
Securities Act or otherwise (the Transferee of Securities in a block trade,
sale to a market maker or an open market transaction, hereinafter, a "Public
Transferee").

                  4.       PURCHASERS OR TRANSFEREES OF COMMON STOCK. Except
as otherwise specifically provided herein, and as a condition to the transfer
of any such Securities on the books and records of the Corporation, any
person or entity (other than a Public Transferee) who shall acquire (either
voluntarily or involuntarily, by operation of law or otherwise) any
Securities from (i) any of the Management Stockholders, Leitch or Elliott or
(ii) any transferee of any of them (other than Public Transferees) (any such
transferee of any of them, a "Transferee"), shall execute an agreement
wherein such Transferee (other than a Public Transferee) shall agree to be
bound by, subject to and shall enjoy the rights and benefits of, this
Agreement to the same extent,

                                       6
<PAGE>

and subject to the same covenants and agreements, as the party hereto
transferring such Securities to such Transferee.

                  5.       ELLIOTT PUT OPTION.

                           (a)      Leitch shall, concurrently with the
purchase of any Seller's Shares pursuant to the Right of First Refusal or a
Competing Offer, deliver to Elliott written notice of such purchase (the "Put
Notice"). Upon receipt of the Put Notice, Elliott shall have the option (the
"Put Option"), exercisable by written notice to Leitch given within five (5)
business days of receipt by Elliott of the Put Notice, to require that Leitch
acquire a pro rata portion of the Elliott Put Shares. The pro rata portion of
the Elliott Put Shares for purposes of this Put Option is the ratio of the
total number of Seller's Shares purchased by Leitch pursuant to Section 3
hereof to the total number of Management Shares beneficially owned by
Management Stockholders and their Transferees (other than Public Transferees)
immediately prior to the purchase by Leitch pursuant to Section 3 hereof. For
example, if Leitch purchases from the Management Stockholders, pursuant to
Section 3 above, 333,333 shares of Common Stock out of a total of 1,000,000
Management Shares, then the ratio would be 1/3 and Elliott would have the
right to require Leitch to purchase 1/3 of the Elliott Put Shares.

                           (b)      The purchase price to be paid by Leitch
for the Elliott Put Shares shall be equal to the purchase price paid to the
Management Stockholders for the Seller's Shares and shall be payable in the
same form or forms of consideration paid to the Management Stockholders for
the Seller's Shares.

                           (c)      The closing (a "Put Closing") of the
purchase and sale of the Elliott Put Shares shall take place no later than
five (5) business days following the exercise of the Put Option by written
notice to Leitch pursuant to Section 5(a) above. The exercise of the Put
Option (which exercise is evidenced by the delivery of a Put Notice to
Leitch) shall constitute an unconditional and irrevocable commitment by
Elliott, on the one hand, and Leitch, on the other hand, to sell and purchase
the Elliott Put Shares in accordance with the provisions of this Section 5.
On the date of a Put Closing, Elliott shall deliver to Leitch at the Leitch's
principal executive office set forth in Section 12 below, against receipt of
payment of the purchase price therefor, the certificate or certificates
representing the Elliott Put Shares being sold, properly endorsed for
transfer, signature guaranteed, with all necessary transfer and documentary
stamps affixed thereto, together with a certificate signed by Elliott to the
effect that the Elliott Put Shares being transferred are free and clear of
all liens, encumbrances or rights of third parties of any nature whatsoever.

                           (d)      Notwithstanding Section 4 hereof, it is
understood and agreed by the parties hereto that a Put Option is not
transferable or otherwise assignable without the prior written consent of the
Management Stockholders and Leitch, and any attempt to transfer or otherwise
assign the Put Option in violation of this Section 5(d) will render the Put
Option void and of no further force or effect.

                                       7

<PAGE>

                  6.       RIGHT OF SUBSCRIPTION FOR NEW SECURITIES.

                           (a)      The Corporation hereby grants, on the terms
set forth in this Section 6, to Leitch and to each Transferee of Leitch (other
than Public Transferees), the right of first offer to purchase Leitch's or such
Transferee's, as applicable, pro rata share of the New Securities (as defined in
Section 6(b) below) which the Corporation may, from time to time, propose to
sell or issue. Leitch and such Transferees shall have the right to purchase said
New Securities on the same terms and at the same price at which the Corporation
proposes to sell the New Securities. A person's or entity's pro rata share of
the New Securities, for purposes of this right of first offer, shall be the
ratio of the total number of voting equity securities and Class B Common Stock
of the Corporation held by Leitch or by such Transferee(s), as applicable, to
the total number of voting equity securities and Class B Common Stock of the
Corporation issued and outstanding immediately prior to the issuance of the New
Securities (assuming the issuance of all voting equity securities and Class B
Common Stock of the Corporation issuable pursuant to then outstanding warrants,
options, convertible or exchangeable securities and other rights to acquire
voting equity securities and Class B Common Stock of the Corporation from the
Corporation).

                           (b)      "New Securities" shall mean any capital
stock of the Corporation, whether now authorized or not, and any rights, options
or warrants to purchase said capital stock, and securities or debt of any type
whatsoever that are, or may become, convertible into or exchangeable for such
capital stock; provided that "New Securities" do not include (i) shares of
capital stock issued upon conversion of any convertible securities or exercise
of any options or warrants; (ii) securities issued pursuant to the bona fide
acquisition by the Corporation of another corporation or other entity, which
corporation or other entity would qualify as a Strategic Entity, by merger,
purchase of substantially all of the assets or stock of such corporation, or
other acquisition, reorganization or similar transaction; (iii) all shares of
capital stock or other securities, options or other rights to purchase capital
stock hereafter issued or issuable to officers, directors, employees or
consultants of the Corporation pursuant to any employee or consultant stock
offering, stock purchase or stock option plan or other arrangement approved by
the Board of Directors of the Corporation; (iv) any shares of capital stock
purchased from or issued by the Corporation by/to an entity which is a Strategic
Entity in a Strategic Transaction. For purposes hereof, a Strategic Transaction
shall mean a transaction with a Strategic Entity which is a "major player" in
the industry in which the Corporation operates (a "Strategic Entity") and which
Strategic Entity, as part of the transaction, enters into a licensing,
technology and distribution agreement with the Corporation.

                           (c)      The Corporation shall give Leitch and each
Transferee of Leitch (other than Public Transferees) written notice prior to any
sale or issuance of New Securities (the "New Issuance Notice"), describing the
type of New Securities, the price and the terms upon which the Corporation
proposes to sell or issue the New Securities. If Leitch or any such Transferee
determines to exercise its rights pursuant to this Section 6, Leitch or such
Transferee, as applicable, shall, within ten (10) days from the date of receipt
of the New Issuance Notice (the "New Issuance Notice Period"), deliver written
notice to the Corporation of its election to purchase its pro rata share of the
New Securities and stating therein the quantity of New Securities to be
purchased. Upon exercise of its rights pursuant to this Section 6, Leitch or
such

                                       8
<PAGE>

Transferee, as applicable, shall purchase, and the Corporation shall sell or
issue to Leitch or such Transferee, as applicable, such person's or entity's
pro rata share of the New Securities simultaneously with the closing of the sale
or issuance of the other New Securities by the Corporation. In the event that
the consideration paid by an acquiror of New Securities includes non-cash
consideration, the dollar value of such non-cash consideration shall be
determined by an independent third party mutually agreed upon by Leitch and the
Corporation, whose good faith determination shall be conclusive and whose
reasonable fees and expenses shall be paid by the Corporation, and Leitch or
such Transferee, as applicable, may pay the non-cash portion of the purchase
price hereunder by paying the cash equivalent of such non-cash consideration, as
so determined by such independent third-party.

                           (d)      In the event Leitch or such Transferee, as
applicable, fails to exercise the right of first offer within the New Issuance
Notice Period, the Corporation shall have 90 days thereafter to sell or enter
into an agreement (pursuant to which the sale of New Securities covered thereby
shall be closed, if at all, within 90 days from date of said agreement) to sell
the New Securities otherwise purchasable by Leitch or such Transferee, as
applicable, at a price and upon terms no more favorable to the purchasers
thereof than specified in the New Issuance Notice. In the event the Corporation
has not sold or entered into an agreement to sell the New Securities within said
90 day period (or sold and issued New Securities in accordance with the
foregoing within 90 days from the date of said agreement) the Corporation shall
not thereafter issue or sell any New Securities without first offering such
securities to Leitch and such Transferees in the manner provided above.

                           (e)      Notwithstanding the foregoing, the
Corporation shall have no obligation, pursuant to this Section 6, at the request
of Leitch or otherwise, to issue, sell, or otherwise convey or enter into any
negotiation or transaction to issue, sell or convey New Securities.

                  7.       REGISTRATION OF THE SECURITIES.

                           (a)      At any time after the first anniversary date
of the earlier to occur of (i) the date of effectiveness of the Form 10 (as such
term is defined in the Purchase Agreement) and (ii) the date on which a class of
securities of the Corporation shall be registered under the Securities Exchange
Act, Leitch and any Transferee of Leitch (other than Public Transferees) shall
have the right to request that the Corporation effect the registration under the
Securities Act of 1933, as amended (the "Securities Act") of any or all shares
of Class A Common Stock of the Corporation (for purposes of this Section 7 only,
the "Securities") beneficially owned by Leitch and/or such Transferee (the
Securities requested to be registered are hereinafter collectively referred to
as the "Requested Registration Shares"). In such event, the Corporation shall
use its reasonable best efforts to cause the Requested Registration Shares to be
registered under the Securities Act and to effect and to comply with all such
qualifications, compliances and requirements as may be necessary to permit the
sale or other transfer of such Requested Registration Shares in the manner
described in such request, including, without limitation, qualifications under
applicable blue sky or other state securities laws (provided that the
Corporation shall not be required in connection therewith to qualify as a
foreign corporation or to execute a general consent to service of process in any
state); provided, however, that (i) the Corporation shall not be obligated to
file and cause to become effective more than two registration statements in
which Requested Registration Shares are sold pursuant to this

                                       9
<PAGE>

subsection (a), (ii) the Corporation shall not be obligated to file and cause to
become effective more than one such registration statement under this subsection
(a) in any six-month period and (iii) in the event that, for any reason (other
than as a result of a request made by Leitch or any Transferee of Leitch to
withdraw such person's or entity's Requested Registration Shares from such
registration), less than one-half of the number of Requested Registration Shares
shall be registered under the Securities Act in accordance with a request made
by Leitch or any Transferee of Leitch (other than Public Transferees) pursuant
to this subsection (a), then such registration shall not constitute one of the
registration statements referred to above. Leitch's and such Transferee's rights
under this subsection (a) shall terminate upon the earlier to occur of (1) the
seventh anniversary of the date hereof or (2) the date on which all of the
shares of Common Stock held by Leitch and Transferees of Leitch (other than
Public Transferees) may be sold pursuant to Rule 144 of the Securities Act
during a 90-day period. If Leitch and any Transferees of Leitch initiating a
registration request under this subsection (a) intend to distribute the
Requested Registration Shares covered by such request by means of an
underwriting and the managing underwriter of such underwriting advises Leitch
and any such Transferees that marketing factors require a limitation of the
number of shares to be underwritten, then the number of Securities that may be
included in the underwriting shall be allocated among each of Leitch and/or any
such Transferees desiring to include any Requested Registration Shares in
proportion to the amount of Securities owned by each such person or entity;
provided, however, that the number of shares of Requested Registration Shares to
be included in such offering shall not be reduced unless all other securities
are first entirely excluded from the underwriting.

                           (b)      [Intentionally omitted].

                           (c)      In the event that, at any time or from time
to time on or prior to the seventh anniversary of the date hereof, the
Corporation proposes to register on its behalf or on behalf of any selling
stockholder(s) of the Corporation any securities (the "Registration Shares"),
including shares of Common Stock, under the Securities Act, other than pursuant
to a registration statement on Forms S-4 or S-8, or any successor to such Forms
promulgated by the Securities Exchange Commission (the "Commission"), and other
than in an initial public offering of Securities, for the purpose of the sale or
other transfer of the Registration Shares, the Corporation shall mail or deliver
to Leitch and to each Transferee of Leitch (other than Public Transferees) at
least 30 days prior to the filing of the registration statement covering such
Registration Shares or securities, a written notice (a "Registration Notice") of
its intention so to register the Registration Shares.

                           (d)      In the event that a Registration Notice
shall have been so mailed or delivered, Leitch, at its election, may mail or
deliver to the Corporation a written notice (a "Supplemental Notice") (i)
specifying the number of shares of Common Stock ("Supplemental Registration
Shares") proposed to be sold or otherwise transferred and (ii) requesting the
registration thereof under the Securities Act; provided, however, that such
Supplemental Notice shall be so mailed or delivered by Leitch not more than 15
days after the date of the Registration Notice.

                           (e)      From and after receipt of a Supplemental
Notice, the Corporation shall, subject to the sale or other transfer of some or
all of such Registration Shares by means of the registration thereof and to the
provisions of subsection (a) above, use its reasonable best

                                       10
<PAGE>

efforts to cause the Supplemental Registration Shares specified in such
Supplemental Notice to be registered under the Securities Act and to effect and
to comply with all such qualifications, compliances and requirements as may be
necessary to permit the sale or other transfer of such Supplemental Registration
Shares in the manner described in such Supplemental Notice, including, without
limitation, qualifications under applicable blue sky or other state securities
laws (provided that the Corporation shall not be required in connection
therewith to qualify as a foreign corporation or to execute general consent to
service of process in any state); provided, however, that if (i) in the case of
an underwritten public offering of securities, the managing underwriter shall
advise the Corporation in writing that inclusion of some or all of such
Supplemental Registration Shares would, in such managing underwriter's opinion,
materially interfere with the proposed distribution of the securities to be
issued by the Corporation, then the Corporation may, upon written notice to
Leitch and to each Transferee of Leitch (other than Public Transferees) allocate
the Supplemental Registration Shares to be included in the registration
statement (if and to the extent such allocation is certified by such managing
underwriter as necessary to eliminate such interference) pro rata among Leitch
and such Transferees, on the one hand, and other selling stockholders, on the
other hand, on the basis of the number of shares of Common Stock held by Leitch
and held by such selling stockholders (assuming the issuance of Common Stock
issuable pursuant to all outstanding warrants, options, convertible and/or
exchangeable securities or other rights to acquire Common Stock, provided that
such securities are at the time exercisable, convertible or exchangeable),
provided that in no event shall the Supplemental Registration Shares be reduced
below 20% of the total amount of securities included in such offering, or (ii)
any firm of counsel representing the Corporation in connection with such
registration shall advise the Corporation, Leitch and such Transferees, in
writing that in their opinion the steps contemplated hereby are not necessary to
permit the sale of the Supplemental Registration Shares in a transaction
constituting a public offering within the meaning of the Securities Act, then
the Corporation shall not be required to take any action with respect to such
step or steps.

                           (f)      If and whenever the Corporation is required
by the provisions of this Section 7 to use its reasonable best efforts to effect
the registration under the Securities Act of any securities requested to be so
registered by Leitch, the Corporation will, as promptly as possible:

                                    (i)      prepare and file with the
Commission a registration statement with respect to such securities and use its
reasonable best efforts to cause such registration statement to become
effective;

                                    (ii)     prepare and file with the
Commission such amendments and supplements to such registration statement and
the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for a period from the date of the effectiveness
thereof through the earlier of (1) the date which is nine (9) months after the
date of effectiveness thereof and (2) the date on which all Requested
Registration Shares or Supplemental Registration Shares, as the case may be,
included in such registration statement shall have been sold pursuant to such
registration statement, and to comply with the provisions of the Securities Act
with respect to the sale or other disposition of all securities covered by such
registration statement whenever Leitch or Transferees of Leitch (other than
Public Transferees) shall desire to sell or otherwise dispose of the same within
such period;

                                       11
<PAGE>

                                    (iii)    furnish to Leitch and such
Transferees such number of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and
such other documents as may reasonably be requested thereby in order to
facilitate the public sale or other disposition of such securities owned
thereby;

                                    (iv)     notify Leitch and such
Transferees, in writing, at any time when a prospectus relating to such
securities is required to be delivered under the Securities Act within the
appropriate period mentioned in clause (ii) immediately preceding, of the
happening of any event as a result of which the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of
circumstances then existing, and promptly prepare (and file with the
Commission) and furnish to Leitch and such Transferees a reasonable number of
copies of a supplement to or an amendment of such prospectus as may be
necessary so that, as thereafter delivered to the purchasers of such
securities, such prospectus shall not include an untrue statement of a
material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of
the circumstances then existing; and

                                    (v)      furnish, at the request of
Leitch or such Transferees, on the date that its securities are delivered to
the underwriters for sale pursuant to a registration thereof pursuant hereto
or, if such securities are not being sold through underwriters, on the date
the registration statement with respect to such securities becomes effective
(x) an opinion (in the form customarily provided to underwriters in such
transactions) dated such date of the counsel representing the Corporation for
the purposes of such registration, addressed to the underwriters, if any, and
to Leitch and such Transferees, and (y) a letter dated such date from the
independent public accountants of the Corporation addressed to the
underwriters, if any, in each case covering substantially the same matters
with respect to the issuer, such registration statement (and the prospectus
included therein) and, in the case of the accountants' letter, with respect
to the financial statements and financial information included in such
registration statement (and the prospectus included therein) and with respect
to events subsequent to the date of the financial statements included in such
registration statements, as are customarily covered in opinions of issuer's
counsel and in accountants' letters delivered to the underwriters in
underwritten public offerings of securities.

                           (g)      Leitch and such Transferees agree to
furnish the Corporation such information regarding Leitch and the proposed
distribution of Requested Registration Shares or Supplemental Registration
Shares, as the case may be, by Leitch and such Transferees as the Corporation
may from time to time reasonably request in writing in order to prepare a
registration statement and prospectus or any supplement or amendment thereto
pursuant to the Securities Act and the rules and regulations promulgated
thereunder.

                           (h)      Leitch and such Transferees agree that,
upon receipt of a written notice from the Corporation of the happening of any
event of the kind described in clause (iv) of Section 7(e) above, they will
forthwith discontinue their disposition of Requested Registration Shares or
Supplemental Registration Shares, as the case may be, pursuant to the
registration statement relating to such Requested Registration Shares or
Supplemental Registration Shares, as the case may be, until their receipt of
the copies of the supplemented or amended prospectus

                                       12
<PAGE>

contemplated by clause (iv) of Section 7(f) above and, if so requested by the
Corporation in writing, will deliver to the Corporation (at the Corporation's
expense) all copies then in their possession, other than permanent file copies,
of the prospectus relating to such Requested Registration Shares or Supplemental
Registration Shares, as the case may be.

                           (i)      The Corporation shall pay all expenses
necessary to effect under the Securities Act any registration statements,
amendments or supplements filed pursuant to this Section 7 (other than
underwriters' discounts and commissions and brokerage commission and fees, if
any, payable with respect to securities sold by Leitch or such Transferees),
including, without limitation, printing expenses, fees of the Commission and the
National Association of Securities Dealers, Inc., expenses of compliance with
blue sky and other state securities laws, and accounting and legal fees and
expenses (including the reasonable legal fees and expenses of one counsel to
Leitch and such Transferees exercising their rights under this Section 7);
provided, however, that the Corporation shall not be required to pay for any
expenses of any registration proceeding begun pursuant to subsection (a) above
if the registration request is subsequently withdrawn at the request of Leitch
and/or any such Transferee, unless Leitch and/or any such Transferee agrees to
forfeit their right to one demand registration pursuant to subsection (a) above.

                           (j)      Whenever a registration statement requested
pursuant to Section 7(a) covers an underwritten public offering, the Corporation
will have, subject to the reasonable approval of Leitch, the right to select the
managing underwriter(s) to administer the offering; provided that the managing
underwriters shall be of nationally recognized standing. Other than pursuant to
a registration statement requested pursuant to Section 7(a), if the Corporation
at any time proposes to register any of its securities under the Securities Act
for sale for its own account and such securities are to be distributed by or
through one or more underwriter(s), the Corporation will have the right to
select the managing underwriter(s) to administer the offering.

                           (k)      From and after such date as the Corporation
shall have filed a registration statement pursuant to the requirements of
Section 12 of the Securities Exchange Act of 1934 (the "Securities Exchange
Act") relating to any class of equity securities of the Corporation or a
registration statement pursuant to the requirements of the Securities Act, the
Corporation covenants that it will, so long as any Securities remain
outstanding, file all reports required to be filed by it under the Securities
Act or the Securities Exchange Act and the rules and regulations promulgated by
the Commission thereunder, and the Corporation will take such further reasonable
action as any Stockholder may reasonably request, all to the extent required
from time to time to enable such Stockholder to sell such restricted shares held
by them without registration within the limitations of the exemptions provided
by (i) Rule 144 of the Securities Act or (ii) any similar rule or regulation
hereafter promulgated by the Commission.

                           (l)      In the event of any registration pursuant to
this Section 7 covering securities beneficially owned by Leitch and any
Transferee of Leitch (other than Public Transferees), the Corporation will
indemnify and hold harmless Leitch and any such Transferee (if securities of
Leitch or such Transferee are included in the subject registration statement)
(collectively, the "Indemnitees") against any losses, claims, damages, costs,
expenses (including reasonable attorneys' fees), or liabilities (or actions in
respect thereof) under the Securities Act or otherwise, which arise out of or
are based upon any untrue statement or alleged untrue

                                       13
<PAGE>

statement of any material fact contained in any such registration statement, any
preliminary prospectus or final prospectus contained therein, or any amendment
or supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading; provided, however, that
the Corporation will not be liable in any such case to an Indemnitee to the
extent that any such loss, claim, damage or liability arises out of or is based
upon (x) an untrue statement or alleged untrue statement or omission or alleged
omission made in said registration statement, said preliminary prospectus, said
prospectus, or any said amendment or supplement, in reliance upon and in
conformity with written information furnished by such Indemnitee, specifically
for use in the preparation thereof or (y) such Indemnitee's failure to deliver a
copy of the prospectus or any amendments or supplements thereto (if required by
applicable law) to the person asserting any loss, claim, damage or liability
after the Corporation has furnished such Indemnitee with the same. The
Corporation also agrees to reimburse each Indemnitee for any legal or other
expenses reasonably incurred by such Indemnitee in connection with investigating
or defending any such loss, claim, damage, liability or action. Notwithstanding
the foregoing, the indemnity agreement contained in this subsection (l) shall
not apply to amounts paid in settlement of any such loss, claim, damage, cost,
expense or liability if such settlement is effected without the consent of the
Corporation (which consent shall not be unreasonably withheld).

                           (m)      In the event of any registration pursuant to
this Section 7 covering securities beneficially owned by Leitch or any
Transferee of Leitch (other than Public Transferees), Leitch or such Transferee,
as applicable, (if securities of Leitch or such Transferee are included in the
subject registration statement) shall severally (and not jointly) as to such
person in the instances and to the extent set forth in this subsection (m)
indemnify and hold harmless the Corporation, each of its directors and officers
who has signed any registration statement, and each person, if any, who controls
the Corporation within the meaning of the Securities Act, against any losses,
claims, damages, costs, expenses (including reasonable attorneys' fees), or
liabilities (or actions in respect thereof) to which the Corporation or any such
director, officer, or controlling person may become subject, under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue or alleged untrue statement of any material fact contained in said
registration statement, said preliminary prospectus, said prospectus, or said
amendment or supplement thereto, or arise out of or are based upon the omission
or the alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, in each case
to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in said registration
statement, said preliminary prospectus, said prospectus, or said amendment or
supplement, in reliance upon and in conformity with written information
furnished by such stockholder, as the case may be, specifically for use in the
preparation thereof. Such stockholder, as the case may be, shall severally (and
not jointly) reimburse any legal or other expenses reasonably incurred by the
Corporation or any such director, officer, or controlling person in connection
with investigating or defending any such loss, claim, damage, liability or
action.

                                       14
<PAGE>

                           (n)      Promptly after receipt by an indemnified
party under this Section 7 of notice of the commencement of any action, such
indemnified party shall, if a claim in respect thereof is to be made against any
indemnifying party under this Section 7 notify the indemnifying party of the
commencement thereof; provided, however, that failure to so notify the
indemnifying party shall not affect an indemnifying party's obligations
hereunder, except to the extent that a party is actually prejudiced by such
failure. In case any such action is brought against any indemnified party, and
it notifies an indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate in the defense thereof, with counsel
reasonably satisfactory to such indemnified party. Notwithstanding the
foregoing, the indemnified party may retain its own counsel, who shall be
reasonably satisfactory to the indemnifying party. The reasonable fees and
expenses of such counsel shall be borne by the indemnifying party.

                           (o)      With respect to any underwritten offering,
each stockholder (if securities of that person are included in the subject
registration statement) and the Corporation shall, in addition to the foregoing,
provide the underwriter of such offering with customary representations and
warranties, and indemnification, in each instance as shall be reasonably
requested by the underwriter, provided, however, that any such agreement to
indemnify an underwriter with respect to any preliminary prospectus shall not
inure to the benefit of any such underwriter to the extent that any loss, claim,
damage or liability of any such underwriter results solely from an untrue
statement of material fact contained in, or the omission of a material fact
from, such preliminary prospectus which untrue statement or omission was
corrected in the final prospectus, if such underwriter failed to send or give a
copy of the final prospectus to the person asserting such loss, claim, damage or
liability at or prior to the written confirmation of the sale of such securities
to such person, and provided further that any such agreement by any stockholder
to indemnify an underwriter shall be on a several (and not joint) basis in
proportion to the number of securities sold by such stockholder, as the case may
be, in such underwritten offering and shall be limited in amount to the net
proceeds received by such stockholder, as the case may be, in such underwritten
offering. To the extent that the provisions on indemnification and contribution
contained in the underwriting agreement entered into in connection with any
underwritten offering are in conflict with the provisions contained in this
Section 7, the provisions in the underwriting agreement shall control.

                           (p)      Notwithstanding anything to the contrary in
this Section 7, if the Corporation shall furnish to Leitch or any Transferee
requesting and/or participating in a registration statement pursuant to this
Section 7 a certificate signed by the Chief Executive Officer of the Corporation
stating that, in the good faith judgment of the Board of Directors of the
Corporation, it would be seriously detrimental to the Corporation and its
stockholders for such registration statement to be filed and it is therefore
essential to defer the filing of such registration statement, the Corporation
shall have the right to defer taking action with respect to such filing for a
period of not more than 120 days; provided, however, that the Corporation may
not utilize this right more than once in any twelve-month period.

                           (q)      Neither Leitch nor any Transferee shall have
any right to obtain or seek an injunction restraining or otherwise delaying any
registration as the result of any controversy that might arise with respect to
the interpretation or implementation of this Section 7.

                                       15
<PAGE>

                           (r)      Each of Leitch and any Transferee hereby
agrees that, during the period of duration specified by the Corporation and
an underwriter of Common Stock or other securities of the Corporation,
following the date of the first sale to the public pursuant to a registration
statement of the Corporation filed under the Securities Act, it shall not, to
the extent requested by the Corporation and such underwriter, directly or
indirectly sell, offer to sell, contract to sell (including, without
limitation, any short sale), grant any option to purchase or otherwise
transfer or dispose of (other than to donees who agree to be similarly bound)
any securities of the Corporation held by it at any time during such period
except Common Stock included in such registration; provided, however, that:

                                    (i)      such agreement shall be
applicable only to the first such registration statement of the Corporation
which covers Common Stock (or other securities) to be sold on its behalf to
the public in an underwritten offering;

                                    (ii)     all officers and directors of
the Corporation enter into similar agreements; and

                                    (iii)    such market stand-off time
period shall not exceed 180 days.

                  In order to enforce the foregoing covenant, the Corporation
may impose stop-transfer instructions with respect to the shares subject to
this subsection (r) until the end of such period. Notwithstanding the
foregoing, the obligations described in this subsection (r) shall not apply
to a registration relating solely to employee benefit plans on Form S-l or
Form S-8 or similar forms which may be promulgated in the future, or a
registration relating solely to a Rule 145 transaction on Form S-4 or similar
forms which may be promulgated in the future.

                  8.       STANDSTILL. Leitch and each Transferee of Leitch
(other than Public Transferees) agree that from and after the date of this
Agreement, unless such shall have been specifically invited or approved in
writing by the Board of Directors of the Corporation, neither Leitch nor any
Affiliate of Leitch and neither a Transferee of Leitch (other than Public
Transferees) nor any Affiliate of such Transferee will in any manner,
directly or indirectly, except as provided in this Agreement or in the
Corporation's By-laws, (a) effect or seek, offer or propose (whether publicly
or otherwise) to effect, or cause or participate in or in any way assist any
other person or entity to effect or seek, offer or propose (whether publicly
or otherwise) to effect or participate in, (i) any acquisition of any voting
equity securities of the Corporation and any shares of Class B Common Stock
(or beneficial ownership thereof) or all or substantially all of the assets
of the Corporation or any of its subsidiaries, (ii) any tender or exchange
offer (other than to tender or exchange securities of the Corporation in a
tender offer or exchange offer effected by another person or entity not an
Affiliate of Leitch and not an Affiliate of such Transferee) or merger or
other business combination involving the Corporation or any of its
subsidiaries, (iii) any recapitalization, restructuring, liquidation,
dissolution or other extraordinary transaction with respect to the
Corporation or any of its subsidiaries, or (iv) any "solicitation" of
"proxies" (as such terms are used in the proxy rules of the Commission) or
consents to vote securities of the Corporation, (b) form, join or in any way
participate in a "group" (as defined under the Securities Exchange Act of
1934, as amended), (c) except as may result from Leitch's representation on
the Board of Directors of the Corporation, otherwise act,

                                      16
<PAGE>

alone or in concert with others, to seek to control or influence the
management, Board of Directors or policies of the Corporation, (d) take any
action which might force the Corporation to make a public announcement
regarding any of the types of maters set forth in (a) above, or (e) enter
into any discussions or arrangements with any third-party (other than the
directors of the Corporation) with respect to any of the foregoing. Leitch
and each Transferee of Leitch (other than Public Transferees) shall not
amend, waive, modify, or seek from the Corporation (acting through its
officers) the amendment, waiver or modification of, or act in contravention
of, directly or indirectly, the provisions of this Section 8 (including this
sentence) without the prior written consent of the Board of Directors of the
Corporation. Notwithstanding anything to the contrary set forth in this
Section 8, Leitch and each Transferee of Leitch shall be permitted to acquire
(x) any or all of the Management Shares and the Elliott Shares pursuant to
the terms of this Agreement, (y) New Securities pursuant to the terms of
Section 6 hereof or (z) any securities in connection with the consummation of
the transactions contemplated by the Berns Agreement.

                  9.       LEGEND AND COMPLIANCE WITH SECURITIES LAWS. The
stock certificates evidencing the Management Shares, the Elliott Shares and
the Leitch Shares, including any additional shares acquired by any such party
to this Agreement pursuant to the terms of this Agreement or otherwise, shall
bear a legend reading substantially as follows:

                           "The securities represented by this certificate have
                  not been registered under the Securities Act of 1933, as
                  amended, or qualified under state securities laws and may not
                  be sold, pledged, or otherwise transferred unless (a) covered
                  by an effective registration statement under the Securities
                  Act of 1933, as amended, and qualified under applicable state
                  securities laws, or (b) Path 1 Network Technologies Inc. has
                  been furnished with a written opinion of counsel acceptable to
                  it or by its counsel to the effect that no registration or
                  qualification is legally required for such transfer.

                           The securities represented by this certificate are
                  subject to a Stockholders Agreement dated as of April 10,
                  2000, and any subsequent amendments or supplements thereto.
                  Any sale, transfer, pledge or other disposition of the
                  securities represented by this certificate is subject to the
                  provisions of said agreement, a copy of which is on file and
                  may be obtained at the offices of Path 1 Network Technologies
                  Inc."

                  Each of the Management Stockholders, Elliott and Leitch
consent to the Corporation making a notation on its records and giving
instructions to any transfer agent of the Securities in order to implement any
restrictions on transfer established in this Agreement.

                  10.      AMENDMENT TO BY-LAWS. On or prior to the Effective
Date, the Corporation shall cause the By-laws of the Corporation to be amended
to include the provisions set forth in Annex A attached hereto (the
"Amendment"). The parties hereto hereby covenant and agree that once the
provisions set forth in the Amendment have been adopted by the Board of
Directors, the parties hereto shall not, for so long as Leitch and any Affiliate
of Leitch own a

                                      17
<PAGE>

number of the outstanding voting equity securities and Class B Common Stock
of the Corporation representing at least 20% of the number of issued and
outstanding voting equity securities and Class B Common Stock of the
Corporation (assuming the issuance of all voting equity securities and Class
B Common Stock of the Corporation issuable pursuant to then outstanding
warrants, options, convertible or exchangeable securities and other rights to
acquire voting equity securities and Class B Common Stock of the Corporation
from the Corporation), without the prior written consent of Leitch, alter,
amend or repeal the Amendment or any other provision of the By-laws which
shall have the same effect as altering, amending or repealing the Amendment,
notwithstanding the fact that no vote of stockholders of the Corporation may
be required, or that a lesser percentage vote may be specified by law, by the
Certificate of Incorporation or the By-laws.

                  11.      TERMINATION OF THIS AGREEMENT. All rights and
obligations created by this Agreement (other than as provided in Section 7
above, which Section 7 shall control) shall terminate upon the earlier to occur
of (a) the written agreement of the Corporation and all of such of Leitch,
Elliott and the Management Stockholders who own Securities at the time, (b) the
acquisition by a single purchaser of all of the issued and outstanding shares of
Common Stock, (c) the close of business on the tenth anniversary of the date of
the execution and delivery of this Agreement, (d) the merger or consolidation of
the Corporation with or into another entity following which merger or
consolidation more than 50% of the then outstanding voting equity securities of
the Corporation are held by persons or entities different than immediately prior
to such merger or consolidation or (e) the closing of the Corporation's
underwritten public offering pursuant to an effective registration statement
under the Securities Act covering the offer and sale of shares of the
Corporation's voting equity securities in which not less than $25,000,000 of net
proceeds are received by the Corporation for the account of the Corporation.

                  12.      NOTICES. Any notice or other communication under this
Agreement shall be in writing and sufficient if delivered personally or sent by
registered or certified mail, postage prepaid, by recognized overnight courier,
or by telecopy, addressed as follows:

                  If to the Corporation:

                           3636 Nobel Drive
                           Suite 275
                           San Diego, California 92122
                           Telecopy:  (858) 450-4203
                           Telephone: (858) 450-4220
                           Attention: President

                           with copies to Leitch (at the address provided below)
                           and to:

                           Brobeck, Phleger & Harrison LLP
                           12390 El Camino Real
                           San Diego, California 92130
                           Telecopy:  (858) 720-2555
                           Telephone: (858) 720-2750
                           Attention: Hayden Trubitt, Esq.

                                      18
<PAGE>

                  If to Leitch:

                           25 Dyas Road
                           North York, Ontario
                           Canada M3B 1V7
                           Telecopy:  (416) 445-4308
                           Telephone: (416) 445-9640
                           Attention: Mr. Reg T. Tiessen

                  with a copy to:

                           Torys
                           237 Park Avenue
                           New York, New York 10017
                           Telecopy:  (212) 682-0200
                           Telephone: (212) 880-6000
                           Attention: Bradley P. Cost, Esq.

                  If to Fellman:

                           12989 Chaparral Ridge Road
                           San Diego, California 92130
                           Telecopy:  (858) 450-4203
                           Telephone: (858) 450-4220

                  If to Palmer:

                           1229 Trieste Drive
                           San Diego, California 92107
                           Telecopy:  (858) 450-4203
                           Telephone: (858) 450-4220

                  If to Elliott:

                           c/o the Corporation
                           3636 Nobel Drive
                           Suite 275
                           San Diego, California 92122

All such notices and communications shall be deemed to have been duly given at
the time delivered by hand, if personally delivered, upon receipt, if sent by
telecopy, on the next business day, if sent by a nationally recognized courier,
or three (3) business days after being deposited in the mail, if sent by
registered or certified mail. Any party may, upon written notice to the other

                                      19
<PAGE>

parties hereto, change the address to which notices or other communications to
such party are to be delivered or mailed.

                  13.      COUNTERPARTS. This Agreement may be executed in any
number of counterparts, including by telecopy, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same
instrument.

                  14.      ENTIRE AGREEMENT. This Agreement contains the entire
agreement among the parties hereto with respect to the subject matter hereof.
All of the parties hereto agree that this Agreement may be amended or modified
or any provision hereof may be waived by a written agreement among the parties;
provided that notwithstanding the foregoing, any amendment, modification or
waiver of Section 8 may be effected pursuant to the written agreement of Leitch
and the Corporation only (acting through, and under written direction from, its
Board of Directors). This Agreement supersedes all prior understandings,
negotiations and agreements relating to the subject matter hereof.

                  15.      GOVERNING LAW. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware applicable to
agreements made and to be performed entirely within such State, without regard
to the conflict of laws principles of such State.

                  16.      JURISDICTION; WAIVER OF TRIAL BY JURY. THE PARTIES
HERETO HEREBY IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION OF ANY NEW YORK
STATE OR UNITED STATES FEDERAL COURT SITTING IN THE CITY OF NEW YORK OVER ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, AND HEREBY
IRREVOCABLY AGREE THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING SHALL
BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL COURT. THE PARTIES
AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW. THE PARTIES FURTHER WAIVE TRIAL BY JURY, ANY
OBJECTION TO VENUE IN SUCH STATE AND ANY OBJECTION TO ANY ACTION OR PROCEEDING
IN SUCH STATE ON THE BASIS OF FORUM NON CONVENIENS. THE PARTIES FURTHER AGREE
THAT ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL
BE BROUGHT ONLY IN A NEW YORK STATE OR UNITED STATES FEDERAL COURT SITTING IN
NEW YORK COUNTY.

                  17.      HEADINGS. The headings in this Agreement are solely
for convenience of reference and shall not affect the interpretation of any of
the provisions hereof.

                  18.      SEVERABILITY. If any provision herein contained shall
be held to be illegal or unenforceable, such holding shall not affect the
validity or enforceability of the other provisions of this Agreement.

                                      20
<PAGE>

                  19.      BINDING EFFECT. This Agreement shall be binding upon
and inure to the benefit of the Corporation, each of the Stockholders, each of
their respective successors, permitted assigns, executors, administrators, legal
representatives and heirs, as applicable.

                  20.      CONSTRUCTION.

                           (a)      The parties hereto agree that this Agreement
is the product of negotiations between sophisticated parties and individuals,
all of whom were represented by counsel, and each of whom had an opportunity to
participate in, and did participate in, the drafting of each provision hereof.
Accordingly, ambiguities in this Agreement, if any, shall not be construed
strictly or in favor of or against any party hereto but rather shall be given a
fair and reasonable construction without regard to the rule of contra
proferentem.

                           (b)      The provisions of this Agreement shall apply
MUTATIS MUTANDI to any shares or other securities resulting from any stock split
or reverse split, stock dividend, reclassification of the capital stock of the
Corporation, consolidation, merger or reorganization of the Corporation or of
any successor company which may be received by any of the Stockholders (and/or
their respective Transferees, successors, permitted assigns, legal
representatives and heirs) by virtue of such person's or entity's ownership of
Common Stock.

                  21.      EFFECTIVENESS. Notwithstanding anything to the
contrary contained herein or otherwise, this Agreement automatically shall
become effective (without further act or deed by any party hereto or otherwise),
and shall thereafter be in full force and effect, on (and only on and after) the
Effective Date.

                                 *   *   *   *

                                      21
<PAGE>

                 IN WITNESS WHEREOF, each of the parties hereto has executed
this Stockholders' Agreement on the date first above written.

                                       PATH 1 NETWORK TECHNOLOGIES INC.

                                       By: /s/ Vera Moldt
                                          ------------------------------
                                          Name:  Vera Moldt
                                          Title: Secretary

                                       LEITCH TECHNOLOGY CORPORATION

                                       By: /s/ J. A. MacDonald
                                          ------------------------------
                                          Name:  John A. MacDonald
                                          Title: President and Chief Executive
                                                 Officer

                                       By: /s/ Reg J. Tiessen
                                          ------------------------------
                                          Name:  Reg J. Tiessen
                                          Title: Chief Financial Officer

                                          /s/ Ronald D. Fellman
                                       ---------------------------------
                                       Ronald D. Fellman

                                          /s/ Douglas A. Palmer
                                       ---------------------------------
                                       Douglas A. Palmer

                                         /s/ Michael T. Elliott
                                       ---------------------------------
                                       Michael T. Elliott

                                      22
<PAGE>

                                                                         ANNEX A

AMENDMENT TO BY-LAWS

         1.       Special meetings of the Board of Directors may be called by
any director of the Corporation upon written notice given, pursuant to the
requirements of the By-laws, to each of the other directors.

         2.       Directors and committee members, as the case may be, must be
given at least 48 hours' written notice of any Board of Directors meeting or
meeting of any committee of the Board of Directors. Any Director(s) shall be
allowed to participate in Board and committee meetings via telephone.

         3.       The Corporation shall reimburse each director of the
Corporation and each member of any committee established by the Board of
Directors for all reasonable out-of-pocket expenses incurred by such director or
member in connection with the attendance by such director or member at meetings
of the Board of Directors of the Corporation or at meetings of committees of the
Board of Directors, in any case, held in accordance with the By-laws.

         4.       Any stockholder or stockholder group holding at least 20% of
the issued and outstanding Common Stock of the Corporation (assuming the
issuance of all Common Stock issuable pursuant to then outstanding warrants,
options, convertible or exchangeable securities and other rights to acquire
Common Stock from the Corporation, provided such warrants, options, convertible
or exchangeable securities are at the time convertible or exchangeable) may call
a special meeting of the stockholders of the Corporation.

         5.       Notwithstanding the fact that no vote of the Board of
Directors may be required, or (in the specific instances requiring a
percentage vote) that a lesser percentage vote may be allowed by the Delaware
General Corporation Laws, by the Certificate of Incorporation or the By-laws
of the Corporation or otherwise, the Corporation shall submit to the Board of
Directors (and not to any committee thereof) for its review and prior
approval all of the following items and actions:

                  (i)      the Corporation's consolidated annual operating
and capital budgets;

                  (ii)     the Corporation's consolidated business plan;

                  (iii)    the making, alteration, amendment or repeal of the
Certificate of Incorporation of the Corporation or any part thereof, or the
making, alteration, amendment or repeal of the By-laws or any part thereof,
of the Corporation;

                  (iv)     the (a) incurrence of indebtedness for borrowed
money in the name, for the account or on behalf of the Corporation or any of
its subsidiaries in excess of an aggregate amount of $5,000,000 or (b)
investment in the Corporation or any of its subsidiaries by another person or
entity;

                  (v)      the investment (exclusive of amounts on deposit
with banks or lending institutions and short term U.S. government
obligations) by the Corporation or any of its

                                      23
<PAGE>

subsidiaries (whether by way of exchange, purchase, loan, advance, capital
contribution or otherwise) in any person or entity or affiliated person or
entity in excess of an aggregate amount of $1,000,000;

                  (vi)     (a) any capital expenditures by the Corporation or
any of its subsidiaries in excess of $1,000,000, or (b) the Corporation or
any of its subsidiaries entering into any contract or other agreement
involving anticipated expenditures or otherwise having a total value over the
term of such contract or agreement greater than $1,000,000; and

                  (vii)    (a) the sale of all or substantially all of the
assets of the Corporation or any of its subsidiaries in any one transaction
or a series of related transactions, or (b) the transfer or licensing of the
technology (or any part thereof) of the Corporation or any of its
subsidiaries other than in the ordinary course of business (including, on an
exclusive basis in terms of territory, field of use or otherwise).

                                      24

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