Document:

<PAGE>

                                                                   Exhibit 10.16

                          SHARE SUBSCRIPTION AGREEMENT

          THIS AGREEMENT made as of the 29/th/ day of September, 2000;

B E T W E E N:

                  CISCO SYSTEMS, INC. (hereinafter referred
                  to herein as "Purchaser")

                                    - and -

            IMAGICTV INC. (hereinafter referred to as the "Issuer")

          WHEREAS the Issuer is authorized to issue an unlimited number of Class
A Voting Shares in the capital of the Issuer;

          AND WHEREAS the Purchaser desires to subscribe for and purchase from
Treasury Class A Voting Shares of the Issuer upon and subject to the terms and
conditions hereinafter set forth;

          NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the
premises and the covenants and agreements herein contained the parties hereto
agree as follows:

                         ARTICLE ONE - INTERPRETATION

1.1       Definitions
          -----------

          In this Agreement, unless something in the subject matter or context
is inconsistent therewith:

(a)       "Agreement" means this agreement and all amendments made hereto by
written agreement between the Issuer and the Purchaser.

(a)       "Balance Sheet" means the balance sheet of the Issuer as at the
Balance Sheet Date.

(c)       "Balance Sheet Date" means  February 29, 2000.
<PAGE>

(d)       "Business Day" means a day other than a Saturday, Sunday or statutory
holiday in the Province of New Brunswick.

(e)       "Common Shares" means the Class A Voting shares, Class B Non-Voting
shares and Class C Non-Voting shares in the capital of the Issuer.

(f)       "Financial Statements" has the meaning set out in Section 3.1(h).

(g)       "Intellectual Property" means all intellectual property of the Issuer
existing as of the Time of Closing and used or currently being developed for use
by the Issuer and all rights of the Issuer therein, worldwide, whether
registered or unregistered, including without limitation:

          (i)  Copyrights - all copyrights used by or currently being developed
         for use by the Issuer, including without limitation, all copyrights in
         and to the computer software programs listed in Schedule I, including
         the Software and all applications and registrations of such copyrights;

         (ii)  Trade-marks - all trade-marks, trade-names, service marks, brand
         names, logos or the like applied or used by or currently being
         developed for use by the Issuer, whether used or applied in association
         with wares or services, including without limitation, those trade-marks
         listed in Schedule I and all applications, registrations, renewals,
         modifications and extensions of such trade-marks;

         (iii) Patents - all  patents,  patent  applications  and other  patent
         rights, if any,  including  divisional and continuation  patents of the
         Issuer;

         (iv)  Technology - all technology created, developed or acquired by the
         Issuer whether or not patented or patentable and whether or not fixed
         in any medium whatsoever, including without limitation, all inventions,
         know how, techniques, processes, procedures, methods, trade secrets,
         research and technical data, records, formulae, designs, sketches,
         patterns, specifications, blue prints, flow charts or sheets, equipment
         and parts lists and descriptions, samples, reports, studies, findings,
         algorithms, instructions, guides, manuals, and plans for new or revised
         products and/or services; and

         (v)   Licenses - all  licenses,  sub-licenses  and  franchises  used or
         exploited by the Issuer in which the Issuer is a licensee or a licensor
         of intellectual property of a nature described in paragraphs (i) - (iv)
         above.

         (a)   "Operating  Agreement"  means the  Operating  Agreement  dated
               December  17, 1999 made among the Issues and all of its voting
               shareholders.

(i)       "Purchased Common Shares" has the meaning given to such term in
Section 2.1 hereof.

(j)       "Software" means the computer programs known by the names as set out
in Schedule I, including all versions thereof, and all related documentation,
manuals, source code and object code, program files, data files, computer
related data, field and data
<PAGE>

definitions and relationships, data definition specifications, data models,
program and system logic, interfaces, program modules, routines, sub-routines,
algorithms, program architecture, design concepts, system designs, program
structure, sequence and organization, screen displays and report layouts, and
all other material related to the said computer programs, all as they exist at
the Time of Closing.

(k)       "Subsidiary" has the meaning given to such term in the Canada Business
Corporations Act.

(l)       "Time of Closing" means 10:00 a.m. on September 29, 2000.

(m)       "USA" means the unanimous shareholders' agreement dated December 17,
1999 among the Issuer and all of its shareholders.

1.2       Headings
          --------

The division of this Agreement into Articles and Sections and the insertion of
headings are for convenience of reference only and shall not affect the
construction or interpretation of this Agreement. The terms "this Agreement",
"hereof", "hereunder" and similar expressions refer to this Agreement and not to
any particular Article, Section or other portion hereof and include any
agreement supplemental hereto. Unless something in the subject matter or context
is inconsistent therewith, references herein to Articles and Sections are to
Articles and Sections of this Agreement.

1.3       Extended Meanings
          -----------------

In this Agreement words importing the singular number only shall include the
plural and vice versa, words importing the masculine gender shall include the
feminine and neuter genders and vice versa and words importing persons shall
include individuals, partnerships, associations, trusts, unincorporated
organizations and corporations.

1.4       Accounting Principles
          ---------------------

Wherever in this Agreement reference is made to a calculation to be made in
accordance with generally accepted accounting principles, such reference shall
be deemed to be to the generally accepted accounting principles from time to
time approved by the Canadian Institute of Chartered Accountants, or any
successor institute, applicable as at the date on which such calculation is made
or required to be made in accordance with generally accepted accounting
principles.

1.5       Currency
          --------
<PAGE>

All references to currency herein are to lawful money of the United States of
America, unless otherwise indicated.

1.6       Schedules
          ---------

The following are the Schedules annexed hereto and incorporated by reference and
deemed to be part hereof:

         Schedule A -      Exceptions to Representations and Warranties
         Schedule B -      Rights, Privileges, Restrictions and Conditions
                           attached to the Common Shares;
         Schedule C -      Outstanding Shares and Options;
         Schedule D -      Intentionally Deleted;
         Schedule E -      Licenses and all other material agreements;
         Schedule F -      Intentionally Deleted;
         Schedule G -      Employee Indebtedness;
         Schedule H -      Third Party Programs;
         Schedule I -      Intellectual Property and Software;
         Schedule J -      Intentionally Deleted;
         Schedule K -      Intentionally Deleted;
         Schedule L  -     USA; and
         Schedule M -      Operating Agreement

                   ARTICLE TWO - SUBSCRIPTION AND ACCEPTANCE
                   -----------------------------------------

2.        Subscription and Acceptance

2.1       The Purchaser hereby irrevocably subscribes for 937,500 Class A Voting
Shares in the capital of the Issuer (together, the "Purchased Common Shares") at
the aggregate purchase price of $12,000,000. The Purchaser tenders herewith a
certified cheque or a wire transfer the purchase price amount in full payment
for its Purchased Common Shares.

2.2       The Issuer hereby accepts the subscription for the Purchased Common
Shares by the Purchaser in Section 2.1 above and acknowledges having received
payment in full of the purchase price for the Purchased Common Shares.

                ARTICLE THREE - REPRESENTATIONS AND WARRANTIES

3.1      Issuer's Representations and Warranties
         ---------------------------------------

The Issuer  represents and warrants to the  Purchaser,  subject to those matters
specifically  excluded  pursuant to Schedule A attached  hereto,  that as at the
Time of Closing:
<PAGE>

          (a)  the Issuer is a corporation duly incorporated, organized and
               subsisting under the Canada Business Corporations Act, has the
               corporate power to own its assets and to carry on its business
               and has made all necessary filings under all applicable
               corporate, securities and taxation laws or any other laws to
               which it is subject and is a private company as that term is
               defined under applicable securities legislation;

         (b)   the authorized capital of the Issuer consists of an unlimited
               number of Class A Voting Shares, of which 12,900,962 have been
               validly issued and are outstanding as fully paid and non-
               assessable, an unlimited number of Class B Non-Voting Shares, of
               which 1,500,000 have been issued and are outstanding as fully
               paid and non-assessable and an unlimited number of Class C Non-
               Voting Shares, of which 689,383 have been issued and are
               outstanding as fully paid and non-assessable, in each case,
               before giving effect to the sale of the Purchased Common Shares
               contemplated herein;

         (c)   the rights, privileges, restrictions and conditions attached to
               the Common Shares of the Issuer are as set out in Schedule B
               attached hereto;

         (d)   Schedule C hereto accurately sets out the names of all holders of
               issued shares in the capital of the Issuer and the number and
               class of any shares issued to each such holder;

         (e)   the Issuer has good and sufficient power, authority and right to
               enter into and deliver this Agreement and to issue the Purchased
               Common Shares to the Purchaser free and clear of all liens,
               charges, encumbrances and any other rights of others;

         (f)   there is no contract, option, warrants or any other right (
               including pre-emptive rights or rights of first refusal) of
               another binding upon or which at any time in the future may
               become binding upon the Issuer to allot or issue any of the
               unissued shares of the Issuer or to create any additional class
               of shares other than pursuant to (i) the employee share option
               plan which has been duly approved and adopted by the Issuer, a
               copy of which has been delivered to the Purchaser, (ii) the
               obligations of the Issuer under the USA and the Operating
               Agreement, and (iii) those obligations listed in Schedule C;

         (g)   the entering into and the delivery of this Agreement, and the
               completion of the transactions contemplated hereby by the Issuer
               will not result in the violation of:

               (i)   any of the provisions of the constating documents or by-
                     laws of the Issuer,
<PAGE>

               (ii)  any agreement or other instrument to which the Issuer is a
                     party or by which the Issuer is bound, or

               (iii) any applicable law, rule or regulation;

         (h)   the audited financial statements of the Issuer, consisting of the
               Balance Sheet and statements of loss, deficit and changes in
               financial position for the period ended on the Balance Sheet
               Date, together with the report of KPMG, chartered accountants,
               thereon and the notes thereto (hereinafter collectively referred
               to as the "Financial Statements"), a copy of which has been
               provided to the Purchaser:

               (i)   are in accordance with the books and accounts of the Issuer
                     as at the Balance Sheet Date,

               (ii)  are true and correct and present fairly the financial
                     position of the Issuer as at the Balance Sheet Date,

               (iii) have been prepared in accordance with generally accepted
                     accounting principles consistently applied, and

               (iv)  present fairly all of the assets and liabilities of the
                     Issuer as at the Balance Sheet Date including, without
                     limiting the generality of the foregoing, all contingent
                     liabilities of the Issuer as at the Balance Sheet Date;

         (i)   to the best of its knowledge, information and belief, after due
               enquiry, the financial position of the Issuer is at least as good
               as the financial position of the Issuer as at the Balance Sheet
               Date;

         (j)   since the Balance Sheet Date the business of the Issuer has been
               carried on in its usual and ordinary course and the Issuer has
               not entered into any transaction out of the usual and ordinary
               course of business;

         (k)   to the best of its knowledge, information and belief, after due
               inquiry, since the Balance Sheet Date there has been no material
               adverse change in the affairs, business, prospects, operations or
               condition of the Issuer, financial or otherwise, whether arising
               as a result of any legislative or regulatory change, revocation
               of any licence or right to do business, fire, explosion,
               accident, casualty, labour dispute, flood, drought, riot, storm,
               condemnation, act of God, public force or otherwise, except
               changes occurring in the usual and ordinary course of business
               which have not affected the affairs, business, prospects,
               operations or condition of the Issuer, financial or otherwise;

         (l)   the Issuer owns, with a good and marketable title, free and clear
               of all liens, charges, encumbrances and any other rights of
               others, all assets shown or
<PAGE>

               reflected on the consolidated Balance Sheet including, without
               limitation, the property listed on Schedule I, except only such
               of the assets of the Issuer as have been disposed of in the usual
               and ordinary course of business since the Balance Sheet Date, and
               of all assets acquired by the Issuer since the Balance Sheet
               Date;

         (m)   to the best of its knowledge, information and belief, after due
               inquiry, all machinery and equipment owned or used by the Issuer
               has been properly maintained and is in good working order for the
               purposes of ongoing operation, subject to ordinary wear and tear
               for machinery and equipment of comparable age;

         (n)   to the best of its knowledge, information and belief, after due
               inquiry, all of the inventories of the Issuer are of merchantable
               quality and reasonably fit for their usual purpose;

         (o)   there are no outstanding orders, notices or similar requirements
               relating to the Issuer issued by any building, environmental,
               fire, health, labour or police authorities or from any other
               federal, provincial, state or municipal authority and there are
               no matters under discussion with any such authorities relating to
               orders, notices or similar requirements;

         (p)   no dividends have been declared or paid on or in respect of the
               Common Shares and no other distribution on any of its securities
               or shares has been made by the Issuer;

         (q)   the Issuer has no liability, obligation or commitment for the
               payment of income taxes, corporation taxes or any other taxes or
               duties of whatever nature or kind, or interest or penalties with
               respect thereto, except such as are disclosed in the Financial
               Statements or such taxes or duties not yet due as have arisen
               since the Balance Sheet Date in the usual and ordinary course of
               business and for which adequate provision in the accounts of the
               Issuer has been made, and the Issuer is not in arrears with
               respect to any required withholdings or installment payments of
               any tax or duty of any kind and has not filed any waiver for a
               taxation year of the Issuer under the Income Tax Act (Canada) or
               any other legislation imposing tax on the Issuer;

         (r)   except as otherwise set out in the Balance Sheet, there are no
               outstanding liabilities against the Issuer except trade debts
               incurred in the usual and ordinary course of business;

         (s)   the Issuer is not a party to any contract or commitment outside
               the usual and ordinary course of business nor a party to any
               contract or commitment extending for a period of time longer than
               three months or involving expenditures by the Issuer in the
               aggregate in excess of $100,000, except such contracts or
               commitments as are listed in Schedule E attached hereto;
<PAGE>

         (t)   the Issuer is not in default or breach of any contract or
               commitment to which it is a party and there exists no condition,
               event or act which, with the giving of notice or lapse of time or
               both would constitute such a default or breach and all such
               contracts and commitments are in good standing and in full force
               and effect without amendment thereto and the Issuer is entitled
               to all benefits thereunder;

         (u)   the Issuer is not a party to or bound by any guarantee,
               indemnification, surety or similar obligation except those listed
               in Schedule A attached hereto;

         (v)   except as otherwise set out in Schedule A, the Issuer is not a
               party to any lease or agreement in the nature of a lease for real
               property, whether as lessor or lessee;

         (w)   the Issuer has no Subsidiaries, except for iMagicTV (US), Inc.
               and ImagicTV (UK) Limited (all of the issued and outstanding
               shares of which are legally and beneficially owned by the
               Issuer). iMagicTV (US), Inc. was incorporated on November 17,
               1999 . ImagicTV (UK) Limited was incorporated on July 17, 2000 .
               There are no agreements, options or commitments to acquire any
               shares or securities of the Issuer or to acquire or lease any
               business operations, real property or assets;

         (x)   there is no agreement, option, understanding or commitment, or
               any right or privilege capable of becoming an agreement, for the
               purchase from the Issuer of its business or any of its assets
               other than in the usual and ordinary course of business;

         (y)   the Issuer is not a party to or bound by any contract or
               commitment to pay any royalty, licence fee or management fee
               except those listed in Schedule "E attached hereto;

         (z)   all of the current and prior employees of the Issuer have signed
               an Agreement of Confidentiality and Assignment of Invention ; and
               all of the current and prior independent contractors of the
               Issuer have signed Individual Secrecy of Information and Non
               Disclosure Agreement;

         (aa)  all benefit plans of the Issuer have been duly registered where
               required by, and are in good standing under, all applicable
               legislation including, without limiting the generality of the
               foregoing, the Income Tax Act (Canada) and the Pension Benefits
               Act (New Brunswick) or similar legislation in any other
               jurisdiction, and all required employer contributions under any
               such plans have been made and the applicable funds have been
               funded in accordance with the terms thereof of the plans and no
               past service funding liabilities exist thereunder;
<PAGE>

         (bb)  the Issuer is not bound by or a party to:

               (i)   any collective bargaining agreement, or

               (ii)  any benefit plan including, without limiting the generality
                     of the foregoing, any pension plan maintained by or on
                     behalf of the Issuer for any of its employees;

         (cc)  no trade union, council of trade unions, employee bargaining
               agency or affiliated bargaining agent:

               (i)   holds bargaining rights with respect to the Issuer's
                     employees by way of certification, interim certification,
                     voluntary recognition, designation or successor rights,

               (ii)  has applied to be certified as the bargaining agent of any
                     of the Issuer's employees, or

               (iii) has applied to have the Issuer declared a related employer
                     pursuant to the Industrial Relations Act (New Brunswick) or
                     similar legislation in any other jurisdiction or taken
                     substantially similar action in any other jurisdiction in
                     which the Issuer conducts its business;

         (dd)  except for remuneration paid to employees in the usual and
               ordinary course of business and made at current rates of
               remuneration, no payments have been made or authorized since the
               Balance Sheet Date by the Issuer to officers, directors or
               employees of the Issuer;

         (ee)  no director, former director, officer, shareholder or employee of
               the Issuer or any person not dealing at arm's length within the
               meaning of the Income Tax Act (Canada) with any such person is
               indebted to the Issuer;

         (ff)  there are no actions, suits or proceedings (whether or not
               purportedly on behalf of the Issuer) pending or threatened
               against or adversely affecting, or which could adversely affect,
               the Issuer or any of its assets or before or by any federal,
               provincial, municipal or other governmental court, department,
               commission, board, bureau, agency or instrumentality, domestic or
               foreign, whether or not insured, and which might involve the
               possibility of any judgment or liability against the Issuer;

         (gg)  the Issuer is conducting its business in compliance with all
               applicable laws, rules, regulations, notices, approvals and
               orders of Canada and any other jurisdiction in which the business
               of the Issuer is carried on, is not in breach of any such laws,
               rules, regulations, notices, approvals or orders and is duly
               licensed, registered or qualified, and duly possesses all permits
               and quotas, in each of the jurisdictions in which the Issuer
               carries on its business to enable its
<PAGE>

               business to be carried on as now conducted and its assets to be
               owned, leased and operated, and all such licences, registrations,
               qualifications, permits and quotas are valid and subsisting and
               in good standing and none of the same contains or is subject to
               any term, provision, condition or limitation which has or may
               have an adverse effect on the operation of its business or which
               may adversely change or terminate such licence, registration,
               qualification, permit or quota by virtue of the completion of the
               transactions contemplated hereby;

         (hh)  all insurance policies maintained by the Issuer are in good
               standing;

         (ii)  no consent, authorization or approval is required from any
               person, government, agency, office, bureau or authority in
               connection with the entry by the Issuer into this Agreement and
               completion of the transactions contemplated hereby;

         (jj)  attached hereto as Schedule I is a list of all Intellectual
               Property; the Intellectual Property is in good standing and duly
               registered in all appropriate offices to preserve the right
               thereof and thereto;

         (kk)  no conduct of the Issuer and none of the Issuer's products
               infringes (i) upon the trademarks, trade names or copyright of
               any other person registered in Canada or the United States, (ii)
               to the best of its knowledge and belief, after due inquiry, upon
               any registered patent of any other person in Canada or the United
               States, or any unregistered trademarks, trade names, or
               copyrights of any other person in Canada or the United States, or
               (iii) to the best of its knowledge and belief, after due inquiry,
               upon any trade marks, trade names, patents, or copyrights of any
               other person in any part of the world, outside of Canada and the
               United States, where the Issuer conducts its business;

         (ll)  the Intellectual Property is all of the intellectual property
               used in, or required for the proper carrying on of, the Issuer's
               business. The Issuer owns all the Intellectual Property, except
               that portion which is the Third Party Programs. The Issuer is the
               sole and exclusive owner of, with all right, title and interest
               in and to (free and clear of any liens or encumbrances), the
               Intellectual Property, and has sole and exclusive rights (and is
               not contractually obligated to pay any compensation to any third
               party in respect thereof) to the use thereof or the material
               covered thereby, except that portion which is the Third Party
               Programs. There is no and has not been any unauthorized use,
               infringement or misappropriation of the Intellectual Property by
               any person, former employee or other third party to the best of
               the Issuer's information and belief after due inquiry;

         (mm)  except for the third party software ("Third Party Programs")
               listed in Schedule H, the Software was written only by
               individuals (the "Developers") who were employed by the Issuer or
               contracted by the Issuer whereby such individuals were obligated
               to assign all their right, title and interest in and to
<PAGE>

           any developed work to the Issuer, other than minor components of the
           Software which, in the aggregate, do not comprise more than 1% of the
           source code for the current version of the Software;

     (nn)  all employees (including managers and officers) and independent
           contractors, and former employees and independent contractors, of the
           Issuer who either alone or in concert with others developed,
           invented, discovered, designed, modified or corrected any of the
           Intellectual Property or wrote any of the Software have irrevocably
           and unconditionally assigned their intellectual property rights in
           the Software to the Issuer pursuant to written agreements;

     (oo)  all employees (including managers and officers) and independent
           contractors, and former employees and independent contractors, of the
           Issuer have waived in writing their moral rights in the Intellectual
           Property;

     (pp)  the Software neither contains nor embodies nor uses nor requires for
           its full and proper operation any third party software, including
           development tools and utilities except that software and hardware
           identified by the Issuer as required for the operating platform of
           the Software to function in accordance with its product description,
           and the Software, together with the Third Party Programs, contains
           all materials necessary for the continued maintenance and development
           of the Software;

     (qq)  copies of all the license and maintenance agreements for the Third
           Party Programs have been provided by the Issuer to the Purchaser,
           except in respect of Third Party Programs that are "shrink-wrap" or
           "web-wrap" software and that are purchased off-the-shelf by the
           Issuer;

     (rr)  only object code versions of the Software have been provided to those
           licensee customers of the Software (including licensees for testing
           and evaluation purposes), and no person except for such licensees has
           been provided with a copy of the object code of the Software;

     (ss)  except for the arrangements described in Schedule A, the source code
           for the Software has not been delivered or made available to any
           person and the Issuer has not agreed to or undertaken to or in any
           other way promised to provide such source code to any person. The
           source code is being developed in Saint John, New Brunswick and will
           be stored in the offices of the Issuer in Saint John, New Brunswick;

     (tt)  Schedule E lists all licenses, maintenance or support agreements,
           development contracts and all other material agreements (other than
           RFP's and proposals which are referred to in such agreements) between
           the Issuer and any third party, whether at arm's length to the Issuer
           and its principals or otherwise, copies of each of which have been
           supplied to the Purchaser;
<PAGE>

     (uu)  to the best of its knowledge, information and belief, after due
           inquiry, there are no material problems or defects in the Software
           including bugs, logic errors and the failure of the Software to
           operate as described in the related documentation;

     (vv)  there are no distributors, sales agents, representatives or any other
           persons, including VARs, OEMs or resellers, who have or had rights to
           market or license the Software or any of the Intellectual Property or
           who have been otherwise utilized by the Issuer to assist in selling
           the Issuer's products or services, except those persons identified in
           Schedule A; and

     (a)   each shareholder of the Issuer and holder of rights or options to
           acquire shares of the Issuer, excluding the Purchaser, is a signatory
           to the USA and has been advised to obtain independent legal advice in
           connection with the entry by such shareholder or holder, as
           applicable, into the USA. A copy of the USA is attached as Schedule
           L.

     (a)   each voting shareholder of the Issuer and holder of rights or options
           to acquire voting shares of the Issuer, excluding the Purchaser, is a
           signatory to the Operating Agreement and has been advised to obtain
           independent legal advice in connection with the entry by such
           shareholder or holder, as applicable, into the Operating Agreement. A
           copy of the Operating Agreement is attached as Schedule M.

     (a)   no single capital expenditure in excess of $150,000 Canadian or
           capital expenditures in the aggregate in excess of $350,000 Canadian
           have been made or authorized by the Issuer since the Balance Sheet
           Date.

     (a)   the Issuer has not engaged in the past three (3) months in any
           discussion (i) with any representative of any corporation or
           corporations regarding the consolidation or merger of the Issuer with
           or into any such corporation or corporations, (ii) with any
           corporation, partnership, association or other business entity or any
           individual regarding the sale, conveyance or disposition of all or
           substantially all of the assets of the Issuer or a transaction or
           series of related transactions in which more than fifty percent (50%)
           of the voting power of the Issuer is disposed of, or (iii) regarding
           any other form of acquisition, liquidation, dissolution or winding up
           of the Issuer.

     (b)   The Issuer has not granted or agreed to grant any registration
           rights, including piggyback rights, to any person or entity. Except
           as contemplated in the Operating Agreement and the USA, no
           shareholders of the Issuer have entered into any agreements with
           respect to the voting shares of the Issuer

3.2  Survival of Issuer's Representations, Warranties and Covenants
     --------------------------------------------------------------
<PAGE>

     (a)   The representations and warranties of the Issuer set forth in Section
           3.1 shall survive this subscription for the Purchased Common Shares
           herein provided for and:

               (i)    the representations and warranties of the Issuer set out
                      in subsection 3.1(q) , unless such representations and
                      warranties prove to be false as a result of any
                      misrepresentation made or fraud committed in filing a
                      return or supplying information for the purposes of the
                      Income Tax Act (Canada) or any other legislation imposing
                      tax on the Issuer, continue in full force and effect for
                      the benefit of the Purchaser until the expiration of the
                      last of the limitation periods contained in the Income Tax
                      Act (Canada) and any other legislation imposing tax on the
                      Issuer subsequent to the expiration of which an
                      assessment, reassessment or other form or recognized
                      document assessing liability for tax, interest or
                      penalties thereunder for the period ended on the Balance
                      Sheet Date cannot be issued to the Issuer;

               (i)    the representations and warranties of the Issuer set out
                      in subsection 3.1(q) which prove to be false as a result
                      of any misrepresentation made or fraud committed in filing
                      a return or in supplying information for the purposes of
                      the Income Tax Act (Canada) or any other legislation
                      imposing tax on the Issuer shall continue in full force
                      and effect for the benefit of the Purchaser and be
                      unlimited as to duration; and

               (i)    the remaining representations and warranties of the Issuer
                      set forth in Section 3.1 shall continue in full force and
                      effect for the benefit of the Purchaser for a period of
                      five years from the date hereof except for the
                      representation and warranty in section 3.1(b) which shall
                      survive indefinitively.

     (a)   The covenants of the Issuer set forth in this Agreement shall survive
           this subscription for the Purchased Common Shares herein provided for
           and, shall continue in full force and effect for the benefit of the
           Purchaser in accordance with the terms thereof.

3.3  Purchaser's Representations and Warranties
     ------------------------------------------

The Purchaser represents and warrants to the Issuer that:

     (a)   it is a corporation duly incorporated, organized and subsisting under
           the laws of its jurisdiction of organization; and
<PAGE>

     (a)   it has good and sufficient power, authority and right to enter into
           and deliver this Agreement and to complete the transactions to be
           completed by it contemplated hereby.

     (b)   Purchaser is purchasing the Purchased Common Shares as principal for
           its own account and not for the benefit of any other person and not
           with a view to any resale, distribution or other disposition of the
           Purchased Common Shares;

     (c)   Purchaser has such knowledge and experience in financial and business
           matters that Purchaser is capable of evaluating the merits and risks
           of purchasing the Purchased Common Shares and is able to bear the
           economic loss of its entire investment;

     (d)   Purchaser is an "accredited investor", as such term is defined in
           Rule 501(a) under the Securities Act. Purchaser, acting for its own
           account, owns at least $100 million in securities of issuers that are
           not affiliated with Purchaser (calculated in the manner described in
           Rule 144A of the Securities Acg of 1933, as amended) and has invested
           on a discretionary basis such amount in such securities during the
           current calendar year and in each of the three prior fiscal years.

     (e)   Purchaser has had access to such financial and other information and
           has had the opportunity to ask questions of and receive answers from
           the Issuer as Purchaser deems necessary in connection with its
           decision to purchase the Purchased Common Shares;

     (f)   Purchaser was offered the Purchased Common Shares in the United
           States, executed this Subscription Agreement in the United States and
           is not purchasing the Purchased Common Shares as the result of any
           general solicitation or general advertising, including
           advertisements, articles, notices or other communications published
           in any newspaper, magazine or similar media or broadcast over radio
           or television, or any seminar or meeting whose attendees have been
           invited by general solicitation or general advertising;

     (g)   Purchaser understands and acknowledges that the Purchased Common
           Shares will not be and have not been registered under the Act or the
           securities laws of any state of the United States and are being
           offered only in a transaction not involving any public offering
           within the meaning of the Act and in compliance with applicable local
           laws and regulations, and are therefore "restricted securities"
           within the meaning of Rule 144 under the Act, and that if in the
           future it shall decide to resell, pledge or otherwise transfer such
           Purchased Common Shares, the same may be resold, pledged or otherwise
           transferred only (A) to the Issuer or any of its subsidiaries, (B) to
           a subsidiary of the Purchaser, (C) in an offshore transaction meeting
           the requirements of Rule 903 or 904 of Regulation S under the Act and
           in compliance with applicable local laws and regulations, (D) in a
           transaction meeting the requirements of Rule 144 under the Act (and
           based upon an opinion of counsel and other information acceptable to
           the Issuer), (E) in accordance with another exemption (if available)
           from the registration requirements of the Act (and based upon an
           opinion of counsel and other information acceptable to the Issuer) or
           (F) pursuant to an effective registration statement under the Act,
<PAGE>

           and, in each case, in compliance with all applicable state securities
           laws of the United States;

     (h)   Purchaser understands and acknowledges that the Issuer is not
           obligated to file and has no present intention of filing with the
           U.S. Securities and Exchange Commission (the "Commission") or with
           any state securities administrator any registration statement in
           respect of resales of the Purchased Common Shares in the United
           States;

     (i)   Purchaser understands and acknowledges that the Issuer has the right
           to instruct the transfer agent of the Purchased Common Shares not to
           record a transfer by it without first being notified by the Issuer
           that it is satisfied that such transfer is exempt from or not subject
           to registration under the Act and any applicable state securities
           laws;

     (j)   Purchaser is not, and is not acquiring the Purchased Common Shares
           with the assets of, or for or on behalf of, any employee benefit plan
           (a "Plan") (as defined in Section 3(3) of the Employee Retirement
           Income Security Act of 1974, as amended ("ERISA")) or other
           arrangement that is subject to ERISA or Section 4975 of the U.S.
           Internal Revenue Code of 1986, as amended (the "Code"), or any entity
           whose underlying assets include assets of a Plan pursuant to 29
           C.F.R. Section 2510.3-101 or otherwise, except to the extent that the
           acquisition of the Purchased Common Shares:

                    (1)  (i) is made with the assets of a bank collective
                         investment fund and (ii) satisfies the applicable
                         requirements and conditions of Prohibited Transaction
                         Class Exemption 91-38 issued by the U.S. Department of
                         Labor;

                    (2)  (i) is made with assets of an insurance company pooled
                         separate account and (ii) satisfies the applicable
                         requirements and conditions of Prohibited Transaction
                         Class Exemption 90-1 issued by the U.S. Department of
                         Labor;

                    (3)  (i) is made with assets managed by a qualified
                         professional asset manager and (ii) satisfies the
                         applicable requirements and conditions of Prohibited
                         Transaction Class Exemption 84-14 issued by the U.S.
                         Department of Labor;

                    (4)  is made with the assets of a governmental plan as
                         defined in Section 3(32) of ERISA which is not subject
                         to the provisions of Section 401 of the Code;

                    (5)  (i) is made with the assets of an insurance company
                         general account and (ii) satisfies the applicable
                         requirements and conditions of Prohibited Transaction
                         Class Exemption 95-60 issued by the U.S. Department of
                         Labor; and/or

                    (6)  (i) is made with the assets managed by an in-house
                         asset manager and (ii) satisfies the applicable
                         requirements and
<PAGE>

                         conditions of Prohibited Transaction Class Exemption
                         96-23 issued by the U.S. Department of Labor; and

(l)  Purchaser understands that, until registered under the Act, the Purchased
Common Shares will bear a legend to the following effect unless otherwise agreed
between the Issuer and the holder thereof:

          "THE COMMON SHARES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
          U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
          UNDER ANY STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE
          REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED
          UNDER THE SECURITIES ACT OR UNLESS AN EXEMPTION FROM REGISTRATION IS
          AVAILABLE, AND IN COMPLIANCE WITH APPLICABLE SECURITIES LAWS OF ANY
          STATE OF THE UNITED STATES OR ANY APPLICABLE JURISDICTION.

3.4  Survival of Purchaser's Representations, Warranties and Covenants
     -----------------------------------------------------------------

     (a)   The representations and warranties of the Purchaser set forth in
           Section 3.3 shall survive the subscription for the Purchased Common
           Shares herein provided for and, notwithstanding such completion,
           shall continue in full force and effect for the benefit of the Issuer
           for a period of five years from the date hereof.

     (a)   The covenants of the Purchaser set forth in this Agreement shall
           survive the subscription for the Shares herein provided for and,
           notwithstanding such completion, shall continue in full force and
           effect for the benefit of the Issuer in accordance with the terms
           thereof.

                           ARTICLE FOUR - COVENANTS
                           ------------------------

4.1  Intentionally Deleted.
     ---------------------

4.2  Covenants of Purchaser
     ----------------------

     (a)   At the Time of Closing, the Purchaser will deliver an agreement
           whereby the Purchaser agrees to be bound by the terms and conditions
           of the USA and the Operating Agreement, as required by provisions of
           the USA and the Operating Agreement.
<PAGE>

     (a)   Intentionally Deleted

                            ARTICLE FIVE - GENERAL
                            ----------------------

5.1  Further Assurances
     ------------------

The Issuer and the Purchaser shall from time to time execute and deliver all
such further documents and instruments and do all acts and things as the other
party may, after the date hereof, reasonably require to effectively carry out or
better evidence or perfect the full intent and meaning of this Agreement.

5.2  Benefit of the Agreement
     ------------------------

This Agreement shall enure to the benefit of and be binding upon the respective
administrators, successors and permitted assigns of the parties hereto.

5.3  Entire Agreement
     ----------------

This Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof and cancels and supersedes any prior
understandings and agreements between the parties hereto with respect thereto.
There are no representations, warranties, terms, conditions, undertakings or
collateral agreements, express, implied or statutory, between the parties other
than as expressly set forth in this Agreement.

                                                                              17
<PAGE>

5.4  Governing Law
     -------------

This Agreement shall be governed by and construed in accordance with the laws of
the Province of New Brunswick and the laws of Canada applicable therein.

                                                                              18
<PAGE>

IN WITNESS WHEREOF the parties have executed this Agreement as of the date first
hereinabove written.

                                           IMAGICTV INC.

                                           Per: _______________________________
                                           Authorized Signatory c/s

                                           Per: _______________________________
                                           Authorized Signatory

                                           CISCO SYSTEMS, INC.

                                           Per: _______________________________
                                           Authorized Signatory c/s

                                           Per: _______________________________
                                           Authorized Signatory

                                                                              19
<PAGE>

                              Index of Schedules

Schedule A     Exceptions to representations and warranties

Schedule B     Schedule I to ImagicTV's amended articles of incorporation filed
               on June 30, 1998, relating to the rights, privileges,
               restrictions and conditions of the common shares

Schedule C     Shareholder and optionholder list

Schedule D     [Intentionally deleted]

Schedule E     List of licenses and other material agreements

Schedule F     [Intentionally deleted]

Schedule G     List of employee indebtedness

Schedule H     Third party software / programs

Schedule I     List of ImagicTV's intellectual property and software

Schedule J     [Intentionally deleted]

Schedule K     [Intentionally deleted]

Schedule L     Form of Unanimous Shareholders Agreement

Schedule M     Form of Operating Agreement

                                                                              20
<PAGE>

                                 ImagicTV Inc.
                       One Brunswick Square, 14th Floor
                       Saint John, New Brunswick E2L 3Y2
                                    Canada
                                October 4, 2000
                           as of September 29, 2000

Cisco Systems, Inc.
170 West Tasman Drive
San Jose, California 95134

     Re:  Share Subscription Agreement

Ladies and Gentlemen:

     Reference is hereby made to the Share Subscription Agreement (the
"Agreement"), made as of September 29, 2000, between ImagicTV, Inc. and Cisco
Systems, Inc. All terms used herein shall have the meaning attributed to them in
the Agreement.

     It is hereby agreed that the Agreement shall be amended as follows:

     1.   Section 3.1 is amended to add the following representation and
          warranty by the Issuer as subsection (b) thereof:

          (b)  The offer, sale and issuance to the Purchaser of the Purchased
               Common Shares is exempt from the registration requirement of
               Section 5 of the Securities Act of 1933, as amended.

     2.   Section 3.3(e) is amended to add the following sentence:

          In determining the amount of the securities owned by the Purchaser and
          in which the Purchaser has invested on a discretionary basis,
          securities have been valued at cost in accordance with Rule 144A.

     3.   Subpart (B) of Section 3.3(h) is amended to read:

          (B) a wholly owned subsidiary of the Purchaser in a transaction (i) in
          which the subsidiary takes subject to the same representations and
          warranties set forth in this Section 3.3 and (ii) which the Purchaser
          confirms in writing to the Issuer, within a reasonable time following
          the transfer, that such transfer is exempt from the registration
          requirements of the Act,

The parties hereto hereby acknowledge and confirm that the Agreement, as amended
hereby, is, and shall continue to be, in full force and effect.

If the foregoing is acceptable to you, please indicate your acceptance in the
space indicated below.

                                                                              21
<PAGE>

                                   Very truly yours,

                                        IMAGICTV INC.
                                        By:__________________________________
                                        Name:________________________________
                                        Title:_______________________________

AGREED AND ACCEPTED:
CISCO SYSTEMS, INC.
By:__________________________________
Name:________________________________
Title:_______________________________

                                                                              22
<PAGE>

September 29, 2000

Cisco Systems, Inc.
c/o Messrs. Brobeck Phleger & Harrison
2 Embarcadero Place
2200 Gang Road
Palo Alto CA 94303

Re:  Board Observation Rights and Right of First Negotiation

Ladies and Gentlemen:

This letter will confirm our agreement that pursuant to the purchase 937,500
Class A Common Voting Shares of ImagicTV Inc. (the "Company") by Cisco Systems,
Inc. ("Cisco"), Cisco will have the following contractual board observation
rights and the rights of first negotiation:

     Board Observation Rights
     ------------------------

     Cisco and its affiliates shall have the right to appoint one representative
to attend all meetings of the Board of Directors of the Company in a nonvoting
observer capacity. Such representative shall initially be Eric Bannasch or a
substitute designated by Cisco. The Company shall provide to Cisco copies of all
notices, minutes, consents, and other material that it provides to its
directors; provided, however, that the Company reserves the right to exclude
such representative from access to any material or meeting or portion thereof if
a majority of the members of the Board of Directors believes in good faith that
access to such information or attendance at such meeting or portion thereof
would result in disclosure of highly confidential proprietary information on
matters in which there is a substantial likelihood that Cisco or its
representative may have a conflict of interest with the Company, or is necessary
for other similar reasons. Such representative may participate in discussions of
matters brought to the Board of Directors. Cisco agrees to hold in confidence
and trust and not use or disclose any confidential information provided
<PAGE>

to or learned by it in connection with its rights hereunder. Any representative
of Cisco shall enter into a confidentiality agreement with the Company on a form
to be provided by the Company and reasonably acceptable to Cisco.

     Right of First Negotiation
     --------------------------

     In the event that the Board of Directors of the Company (i) receives from
one of the persons or entities listed in Schedule A hereto (a "Potential
Acquiror"), a bona fide offer to be acquired by means of (x) a merger,
consolidation or other business combination pursuant to which the stockholders
of the Company immediately prior to the effective date of such transaction have
beneficial ownership of  less than fifty percent (50%) of the total combined
voting power for election of directors of the surviving corporation immediately
following such transaction, or (y) the sale of all or substantially all of the
assets of the Company, or (ii) votes to initiate a sale to a Potential Acquiror
of (xx) securities, where, as a result of the sale, such person or entity will
have beneficial ownership of twenty-five percent (25%) or more of the total
voting power of the Company, or (yy) all or substantially all of the Company's
assets, prior to accepting such acquisition proposal or initiating such sale,
the Company shall provide to Cisco written notice within 24 hours (the "Notice")
of the proposed terms of such acquisition proposal or sale. The Notice shall
include the specific terms (other than the identity of the party or information
that may reveal the identity of the party) of the acquisition proposal or the
initiation of a sale of the Company.  Further, the Company shall provide a
written summary of the material terms thereof, as well as access to (and copies
of, if requested) all documents containing nonpublic information of the Company
that are or have been supplied to the party making the acquisition proposal.

     Cisco shall have ten (10) business days (which time period may be extended
by mutual written agreement) following its receipt of the Notice ("the
Negotiation Period") in which to present an offer to acquire the Company (the
"Offer").  In the event that the Company accepts Cisco's offer, such Offer shall
be subject to the terms and conditions of Section 3.5 of the Operating Agreement
dated as of December 17, 1999 between the Company and its voting shareholders.
If the Company elects to pursue the Offer, then the Company will provide Cisco
written acknowledgment of such election.  The parties agree to negotiate in good
faith for a period of ten (10) business days (which may be extended by mutual
written agreement) after Cisco's receipt of the Company's written acknowledgment
to pursue Cisco's Offer, to reach agreement on mutually agreeable terms.
<PAGE>

          In the event that:

          (i)    Cisco does not deliver an Offer to the Company within ten (10)
business days (or other mutually agreed upon time period, as set forth above),
after its receipt of the Notice;

          (ii)   the Company elects not to accept Cisco's Offer; or

          (iii)  within the ten (10) business days (or other mutually agreed
upon time period, as set forth above) following the Company's acknowledgment of
its desire to pursue the Offer, Cisco and the Company do not mutually agree to
the terms of an agreement for an acquisition of the Company,

then, and only then, the right of first negotiation of Cisco shall expire with
respect to such acquisition proposal or initiation of a sale and the Company
shall be free thereafter to enter into a definitive agreement with a Potential
Acquiror for an acquisition or sale of the Company.

     Cisco agrees, and any representative of Cisco will agree, to hold in
confidence and trust and not use or disclose any confidential information
provided to or learned by it in connection with its rights hereunder

The Right of First Negotiation described herein shall terminate and be of no
further force or effect, with respect to any person or entity (i) other than
with respect to a Potential Acquiror, upon the consummation of the Company's
first firm commitment underwritten public offering of its common shares
registered under the Securities Act of 1933, (ii) in the event that Cisco or an
affiliate of Cisco shall own less than fifty percent (50%) of the Class A Voting
Shares (as adjusted for any stock dividends, combinations, splits or
recapitalizations) purchased by Cisco pursuant to the Subscription Agreement
dated September 29, 2000 by and between the Company and Cisco or (iii) upon the
date of the closing of the acquisition of all or substantially all of the assets
of the Company or an acquisition of the Company by another corporation or entity
by consolidation, merger or other reorganization in which the holders of the
Company's outstanding voting stock immediately prior to such transaction own,
immediately after such transaction, securities representing less than fifty
percent (50%) of the voting power of the corporation or other entity surviving
such transaction, provided that this provision shall not apply to a merger
effected exclusively for the purpose of changing the domicile of the Company.
The confidentiality provisions hereof will survive any such termination.
<PAGE>

                                        Very truly yours,

                                        Imagictv INC.

                                        By:_______________________________

                                        Name:_____________________________

                                        Title:____________________________

AGREED AND ACCEPTED THIS 29th DAY OF SEPTEMBER, 2000

Cisco Systems, Inc.

By:_________________________

Name:_______________________

Title:______________________
<PAGE>

                              Index of Schedules

Schedule A  List of Persons or Entities<PAGE>

                                                                   Exhibit 10.17

[Imagictv logo]

                        FORM OF SHARE PURCHASE WARRANTS

              Exercisable to Acquire Class A Voting Common Shares

                                      of

                                 IMAGICTV INC.
           (Incorporated under the Canada Business Corporations Act)

THIS IS TO CERTIFY THAT, for value received, [NAME] (the "holder") is the
registered holder of [NUMBER] share purchase warrants ("Warrants") of ImagicTV
Inc. ("ImagicTV") and is thereby entitled, without payment of any additional
consideration, to be issued a number of fully paid and non-assessable Class A
voting common shares in the capital of ImagicTV ("Common Shares") for each
Warrant held determined on the following basis (subject to adjustment as
provided herein): (A) if ImagicTV completes a private placement of Common Shares
to investors (other than current shareholders) (the "Outside Investor Round
Private Placement") prior to the Expiry Time (as hereinafter defined), the
holder will receive a number of Common Shares per Warrant equal to US $14.20
divided by the price per share paid by subscribers in the Outside Investor Round
Private Placement, or (B) if the Outside Investor Round Private Placement is not
completed prior to the Expiry Time, the holder will receive one Common Share per
Warrant. The Warrant may be exercised by surrendering to ImagicTV at its address
as provided herein prior to the Expiry Time, this Warrant Certificate, with a
notice of exercise in the form set forth in Appendix 1 annexed here duly
completed and executed.

Surrender of this Warrant Certificate will be deemed to have been effected only
on personal delivery thereof to, or, if sent by mail or other means of
transmission, on actual receipt thereof by ImagicTV at its address as provided
herein.

The Warrants evidenced by this Warrant Certificate may be exercised by the
holder until 5:00 p.m. (Saint John, New Brunswick time) (the "Expiry Time") on
the earlier of (i) the date of the completion of the Outside Investor Round
Private Placement, and (ii) September 29, 2000, provided that if such Warrants
have not been exercised by the Expiry Time, such Warrants will be deemed to have
been exercised by the holder (without any further action on the part of the
holder or ImagicTV) immediately prior to the Expiry Time. Warrant Certificates
may thereafter be surrendered in exchange for certificates representing Common
Shares to which the holder is entitled.

On and after the date of any exercise or deemed exercise of the Warrants
evidenced by this Warrant Certificate, the holder will have no rights hereunder
except to receive a certificate representing the Common Shares thereby issued to
the holder upon surrender of this Warrant Certificate to ImagicTV at its address
as provided herein.

ImagicTV will not be obligated to issue any fraction of a Common Share on the
exercise or deemed exercise of Warrants. To the extent that a holder of Warrants
would otherwise have been entitled to acquire a fractional number of Common
Shares, the number of Common Shares which such holder is entitled to receive
shall be rounded down to the prior whole number.

  THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE
  THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
  1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR UNDER ANY STATE SECURITIES
  LAWS. THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE
  TRANSFERRED TO A U.S. PERSON OR A PERSON IN THE UNITED STATES. AS USED HEREIN,
  THE TERMS "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS ASCRIBED TO THEM
  IN REGULATION S UNDER THE U.S. SECURITIES ACT.

  Any notice, direction or other communication required or permitted to be given
  under this Warrant Certificate shall be in writing and shall be given by
  facsimile transmission, with confirmation to follow by first class mail,
  addressed as follows: (i) if to ImagicTV, at:

           ImagicTV Inc.
           One Brunswick Square, 14th Floor
           Saint John, New Brunswick E2L 3Y2

           Attention:   Chief Financial Officer
                        Facsimile No.: (506) 631-3001

  or, (ii) if to the holder, at its address in the register of holders of
  Warrants or other records maintained by ImagicTV.

  Any notice, direction or other communication aforesaid shall, if delivered, be
  deemed to have been given and received on the day it was delivered, and if
  sent by facsimile transmission shall be deemed to have been given or received
  on the next Business Day following the day on
<PAGE>

  which it was so sent. The holder and ImagicTV may at any time give to the
  other notice in writing of any change of address, and from and after the
  giving of such notice the address therein specified shall be deemed to be the
  address of the holder or ImagicTV, as the case may be, for the purposes of
  giving notice hereunder. Any change of address notice shall include a contact
  number for the sending of notices by telecommunication hereunder. "Business
  Day" means a day, other than a Saturday or Sunday, or public holiday in the
  Province of New Brunswick.

  All references to currency mean United States of America currency.

  A reference to an entity includes any entity that is a successor to such
entity.

The holding of the Warrants evidenced by this Warrant Certificate shall not
constitute the holder thereof a shareholder of ImagicTV or entitle the holder to
any right or interest in respect thereof.

If any provision of this Warrant is or shall become illegal, invalid or
unenforceable, in whole or in part, the remaining provisions shall nevertheless
be and remain valid and subsisting, and the said remaining provisions shall be
construed as if this Warrant had been executed without the illegal, invalid or
unenforceable portion.

This Warrant shall be construed and governed by the laws in force in the
Province of New Brunswick, and the courts of said Province shall have exclusive
jurisdiction to hear and determine all disputes arising hereunder. ImagicTV and
the holder irrevocably attorn to the jurisdiction of said courts. This paragraph
shall not be construed to affect the rights of the holder to enforce a judgment
or award outside the said Province.

On presentation to ImagicTV at its address as provided herein, subject to the
provisions hereof, the terms of the Unanimous Shareholders Agreement and the
Operating Agreement of ImagicTV, each dated as of December 17, 1999 and on
compliance with applicable laws the Warrant Certificate may be exchanged at no
cost to the holder for one or more Warrant Certificates of different
denominations evidencing in the aggregate the same number of Warrants as the
Warrant Certificate being exchanged.

This Warrant is not transferable by the holder except with the written consent
of a majority of the directors of ImagicTV. ImagicTV will be entitled, to refuse
to record any transfer of any Warrant if such transfer would constitute a
violation of the laws of any jurisdiction.

The Common Shares issuable upon the exercise of the Warrants will be subject to
statutory resale restrictions under the applicable securities legislation. In
addition, statutory restrictions may apply to the resale of such Common Shares
by the securities regulatory authorities in applicable jurisdiction. Purchasers
are advised to consult their own legal advisors in this regard.

IN WITNESS WHEREOF ImagicTV Inc. has caused this Warrant Certificate to be
signed by its officer or other individual duly authorized in that behalf as of
September __, 2000.

                                             IMAGICTV INC.

                                          Name:
                                          Title:
<PAGE>

                                  APPENDIX 1
                                  ----------

                              NOTICE OF EXERCISE
                              ------------------

To:  IMAGICTV INC. ("ImagicTV")

The undersigned holder of the Warrants evidenced by the within Warrant
Certificate hereby exercises its right to be issued Common Shares (or such other
securities or property to which such exercise entitles him in lieu thereof or in
addition thereto under the provisions of the Warrant Certificate) that are
issuable upon the exercise of such Warrants, on the terms specified in such
Warrant Certificate.

The  undersigned  hereby  acknowledges  that it is aware that the Common  Shares
received on exercise will be subject to restrictions on resale under  applicable
securities legislation.

The undersigned hereby irrevocably directs that the said Common Shares be
issued, registered and delivered as follows:

<TABLE>
<CAPTION>
Name(s) in Full            Address(es)                        Number(s) of Common Shares
<S>                        <C>                                <C>

________________           _____________________________      ___________________________________

________________           _____________________________      ___________________________________

________________           _____________________________      ___________________________________
</TABLE>

(Please print full name in which the certificates are to be issued. If any
certificates are to be issued to a person or persons other than the holder, the
holder must pay to ImagicTV all exigible transfer taxes or other government
charges and sign the Form of Transfer.)

DATED this      day of          , 2000.
Witness                                   )
                                          )
___________________________________       )    ________________________________
                                          )    Signature of Registered Holder
                                          )
___________________________________       )    ________________________________
                                               Name of Registered Holder

  Note:      The name of the Registered Holder on this Notice of Exercise must
             be the same as the name appearing on the face page of the Warrant
             Certificate to which this Notice of Exercise is attached.
<PAGE>

                                                              September 29, 2000

Dear [Name],

                            Re:Amendment to Warrant
                            -----------------------

     Reference is made to the share purchase warrant (the "Warrant") issued to
you (the "Warrantholder") by ImagicTV Inc. ("ImagicTV") dated September   ,2000
pursuant to which you were granted a warrant to purchase a number of Class A
common shares of ImagicTV. In this agreement, except as otherwise provided
herein, all definitions shall have the meanings ascribed thereto in the Warrant.

     ImagicTV proposes to amend the Warrant to delete the date "September 29,
2000" in the third paragraph on page one of the Warrant and replace it with the
following date "October 2, 2000". This agreement gives effect to such amendment.

     In all respects, except for changes required to give meaning and effect to
the amendment provided for above, the Warrant remains in full force and effect,
is hereby ratified and confirmed in all respects and is binding upon the parties
thereto and their successors and permitted assigns. Each party hereto confirms
and agrees that this agreement does not constitute a waiver of any breach of any
term, representation, warranty or condition of the Warrant on the part of the
other party.

     If the above is in accordance with your understanding of our agreement,
please sign one copy of this agreement and return it to us.

                                         Yours truly,

                                         ImagicTV Inc.

                                         Per: ________________________________

Agreed and accepted September 29, 2000.

                                         Per: __________________________
                                              Name:
                                              Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]