# Continental
Advisors S.r.l.Via Pergolesi 22

# 20124
Milano, ITALY

Continental
Advisors S.r.l. (Hereafter CA) is pleased to serve on a
non-exclusive basis as a sales agent for Bitzmart, Incorporated, Incorporated
and its affiliates (Hereafter The Company). The Company has advised
us that it would like to secure a $3.000.000 (USD) financing in a private
placement through the Companys issuance of Convertible Debt (The
Securities) in accordance with the terms and conditions set forth below.
This agreement will be in effect as of 15 July 2002 for forty-five (45) days or
completion of the $3.000.000 round, whichever comes first.

|1. |  | The Company hereby appoints CA as a placement agent in connection with the sales
of the Securities and authorizes CA to arrange a Private Placement of the
Securities (The Offering). CA hereby agrees to reasonable efforts to
introduce you to persons or entities who may be interested in purchasing the
Securities to be made directly by the Company to purchasers pursuant to
agreements entered into by the purchasers and the Company (The Private
Placement Memorandum).
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|2. |  | As
compensation for CAs services hereunder, the Company will promptly pay to CA fees as
follows:
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|a) |  | Finders
Fee: 16% for the first $300.000 of the aggregate gross  proceeds of the Securities
sold through CAs efforts, and then 13%  thereafter, payable as a finders fee
in cash. Closing shall occur when  wire transfer funds are in the Companys escrow
account. The Company agrees  not to contact any of CAs clients directly, unless
authorized to do so by  CA, and to have all subscription documents be sent in duplicate
to CAs  office.
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|b) |  | Warrant
Coverage: 10% of the aggregate gross proceeds of the Securities  sold through CAs
efforts, payable in Warrants exercisable into the  Companys Common Stock.
Expiration date shall not be less than three (3)  years, unless Warrants are issued as
part of the Offering, then shall have the  same expiration date of Warrants issued.
Warrant exercise price shall be the  same price of the Companys Common Stock issued
at the time of the  Offering, unless Warrants are issued as part of the Offering, then
shall have  the same exercise price of Warrants issued.
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|c) |  | Debt
Conversion: 3% of the face value of the Securities sold through  CAs efforts,
converted into the Companys Common Stock prior to  maturity, payable in cash plus
10% of the face value of same Securities, payable  in Warrants subject to the same
conditions as above in part 2-b. This fee will  be waived if debt is converted prior to
public flotation, to be completed by  September 30, 2002.
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|d) |  | Warrant
Exercise:  13% of the aggregate  gross  proceeds of Warrants sold through CA's efforts as
part of the  Offering,  exercised  into the
Company's  Common  Stock  prior to  expiration,  payable  in  cash.
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|e) |  | Any
future funds raised from investors in this round are subject to the same  conditions as
above in parts 2-a, 2-b, 2-c and 2-d.
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|3. |  | The
Company and CA agree that:
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|a) |  | The
Company will furnish CA with such information including financial statements  with
respect to the business, operations, assets and liabilities of the company.  The Company
will provide CA with access to the Companys officers,  directors accountants,
counsel, business partners, and agents for any reasonable  request in order to permit it
to assist the Company in preparing materials to  provide prospective investors in the
Private Placement and for use in connection  with the Offering. CA may rely upon the
accuracy and completeness of such  information without independent verification. The
Company will be solely  responsible for the contents of the Private Placement Memorandum
and any and all  other written communication describing the Company, its business, or the
Offering. The Company represents and warrants that the Private Placement  materials and
such other communication will not, as the date of the offer or  sale of the Securities,
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 statement therein, in
light of the circumstances under which they were  made, are not misleading.
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|b) |  | The
Company will allow CA access to information regarding the receipt of funds  in the escrow
account designated by the Company and CA, and undertakes to make  prompt delivery of
share certificates to investors in a period not to exceed 15  days from the receipt of
fund.
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|4. |  | If in connection with the services or matters that are the subject of this
Agreement an Indemnified Person (as defined below) becomes involved in any
capacity in any actual lawsuit, claim or other proceeding, the Company shall
immediately reimburse such Indemnified Person for any all out-of-pocket legal or
other expenses reasonably incurred by such Indemnified Person in connection with
investigating, preparing to defend or defending such lawsuit, claims or
proceedings. The Company also agrees to indemnify each Indemnified Person from
and hold them harmless against any and all losses, claims, damages, liabilities
or expenses to which they may become subject (i) arising out of or based upon
any untrue statement of a material fact contained in a Private Placement
Memorandum provided to any actual or provided to any actual or prospective
purchaser of the Securities or arising out of or based upon the omission or
alleged omissions state therein 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 or (ii) arising in any manner out of
or in connection with this Agreement of the services or matters which are the
subject of this Agreement, including, without limitation, the offer sad sale of
the Securities; provided, however, that the company shall not be liable under
clause (ii) of this paragraph in respect of any loss, claim, damage liability or
expenses incurred by an Identified Person to the extent that it is finally
judicially determined that such loss, claim, damage or liability resulted
directly from the gross negligence or willful misconduct of that party in the
performance of its services hereunder.
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| |  | If any
action or proceeding (including any governmental investigation) shall be  brought or
asserted against any Identified Person in respect of which indemnity  may be sought from
the Company hereunder, such indemnified person shall promptly  notify the Company in
writing and the company shall assume the defense thereof,  including the employment of
counsel reasonably satisfactory to such Indemnified  Person and the payment of all
expenses. Such Indemnified Person shall have the  right to employ separate counsel in any
such action and to participate in the  defense thereof, but the fees and expenses of such
counsel shall be that of such  Indemnified Person unless (a) the Company has agreed to
pay such fees and  expenses or (b) the Company shall have failed to assume the defense of
such  action or proceedings and employ counsel reasonably satisfactory to such
Indemnified Person in any such proceeding or (c) the named parties in any such  action or
proceedings (including any imp leaded parties) include both such  Indemnified Person and
the Company and such Indemnified Person shall have been  advised by counsel that there
may be one or more legal defenses available to the  Indemnified Person (in which case, if
such Indemnified Person notifies the  Company, the Company shall not have the right to
assume the defense of such  action or proceeding on behalf of such Indemnified Person),
it being understood,  however, that the Company then shall have the right to employ
separate counsel  at its own expenses and to participate in the defense thereof and
shall  not, in connection with any one such action or proceeding or separate but
substantially similar or related actions or proceedings in the same jurisdiction  arising
out of the same general allegations or circumstances, be liable for the  reasonable
expenses of more than one separate firm of attorneys at any time for  any indemnified
persons, which firm shall be designated in writing by CA.
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| |  | The
Company agrees that all the indemnification and reimbursement commitments set  forth in
this paragraph 4: (A) shall apply whether or not any Indemnified Person  in a party to
any such actual lawsuit, claim or other proceeding and that the  Indemnified Person shall
be entitled to retain one separate counsel of its  choice in connection with any of the
matters to which such commitments relate  and (B) are in addition to any liability that
the Company may otherwise have to  CA. The Company will not, without prior written
consent of CA, which consent  shall not be unreasonably withheld, settles or compromise
or consent to entry of  any judgment in any pending claim, action, suit or proceeding in
respect of  which indemnification may be sought hereunder (whether or not CA or any
person  who controls CA within the meaning of Section 20 of the securities Exchange Act
of 1934 is a party to such claim, action suit or proceeding), unless such  settlement,
compromise or consent includes an unconditional release of CA and  each such controlling
person from all liability arising out of such claim,  action, suit or proceeding.
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|5. |  | CA will not have any obligation in connection with the Private Placement of the
Securities contemplated by this Agreement except as expressly provided in the
Agreement. In no event shall CA be obligated to underwrite or otherwise purchase
Securities for its own account.
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|6. |  | The appointment and authorization of CA under paragraph 1 of this Agreement
shall terminate 90 days from the of this Agreement or at such other time as may
be mutually agreed upon by the Company and CA (The Termination Date)
provided that the Company shall remain responsible for the reimbursement,
indemnification and contribution obligations of the Company under paragraph 4 of
this Agreement shall survive any terminator of CAs appointment and
authorization hereunder. If during a period of six months following the
Termination Date, the Company sells, in an offering in which CA is not managing
agent or managing underwriter, or in which CA is not compensated, or Securities
exchangeable for or convertible into the Securities though a private placement
or public offering to, or obtains any financing from purchasers which were
contacted by CA in its capacity as placement agent hereunder (as evidenced by a
list certified as accurate by officers of CA of such purchasers delivered by CA
to the Company within 30 days after the Termination Date) then the Company shall
pay CA upon the completion of such sale fee equal to the fee which would have
been payable to CA pursuant to paragraph 2 if the sale had occurred during the
period (The Term) commencing with the date this Agreement and ending
with the Termination Date.
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|7. |  | The Company represents and warrants that this Agreement has been duly authorized
and constitutes a legal, valid and binding obligation of the Company under
applicable law enforceable against the Company in accordance with its terms and
that this Agreement does not, and the offering and sale of the Securities will
not, conflict with, violate or constitute a indebtedness or other material
agreement building upon or affecting the Company or its properties.
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|8. |  | The invalidity or unenforceability of any provision of this Agreement shall not
effect other provisions of this agreement, which shall remain in full force and
effect.
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|9. |  | The
Company or its agents shall not contact CAs clients directly or indirectly,  unless
authorized to do  so by CA.
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|10. |  | This Agreement may not be amended or modified except in writing signed by each
of the parties hereto and shall be governed by and constructed in accordance
with the laws of The United States of America without giving effect to the
conflict of the laws principles thereof.
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If the
foregoing correctly sets forth the understanding and agreement between CA and
the Company, please so indicate in the space provided for that purpose below,
whereupon this letter shall constitute a binding agreement between us as of the
first date written above.

Continental
Advisors S.r.l.  Mr. Mark Porcelli, Director

By:
/s/ _________________

Agreed
& Accepted

By:
/s/_________________Mr. Howard Leventhal, CEOBitzmart, Incorporated