Document:

VRI, Inc.
                             333 Meadowlands Parkway
                           Secaucus, New Jersey 07094
                            Telephone: (201) 390-9200
                            Facsimile: (201) 390-0156

                                                               February 23, 2000

VIA FACSIMILE: (246) 431-0076

Zorro Systems, Ltd.
Chancery House
High Street
Bridgetown, Barbados
Attention: Mr. Alec Wright

     Re:  Proposed  Agreement  for the Purchase of Common Stock of  Intellashop,
          Inc.

Dear Mr. Wright:

     This letter, when countersigned by you and Intellashop, Inc., shall confirm
the  agreement  as of  January 7,  2000,  by and  between  VRI,  Inc.,  a Nevada
corporation  (the  "Buyer"),  Zorro  Systems Ltd., a Barbados  corporation  (the
"Shareholder")  and Intellashop,  Inc., a Barbados  corporation (the "Company"),
upon which the  Shareholder  will sell to Buyer shares of the  Company's  common
stock. Our agreement is on the terms,  and subject to the conditions,  described
below. Except for paragraphs 5, 6 and 7 below,  however,  this letter represents
only our current  good-faith  intention to negotiate and enter into a definitive
agreement for the purchase of common stock (the  "Agreement  for the Purchase of
Common  Stock"),  which  shall be  subject to the terms and  conditions  of this
letter satisfactory  completion of the parties' due diligence  investigation and
to  negotiation  of such as Agreement for the Purchase of Common Stock in a form
acceptable to the parties  (except with respect to paragraphs 5, 6 and 7, below)
and none of the  parties  hereto  shall have any  liability  to the other if the
parties  fail  to  execute  an  Agreement  for the  Purchase  of  Common  Stock.
Statements  below as to what the  parties  will do, or agree to do, or the like,
are so expressed  for  convenience  purposes  only,  and are  understood  in all
instances  (except for  paragraphs 5, 6 and 7 below) to be subject to our mutual
continued  willingness to proceed with any transaction as our negotiations  take
place.

     1.   Fundamental  Terms.  At the date of closing of the  Agreement  for the
          Purchase of Common Stock (the "Closing"), the Buyer agrees to purchase
          and Shareholders agrees to sell and deliver,  such number of shares of
          the Company's common stock,  $100.00 par value,  which shall represent
          not less than 100% of the Company's  issued and outstanding  shares of
          common  stock  as  of  the   Closing,   on  a  fully   diluted   basis
          (collectively,  the "Shares"),  after giving effect to all outstanding
          Company shares of common stock, options, warrants or rights to acquire
          Company  shares of common  stock,  as if all Company  shares of common
          stock which may be acquired  by  exercise  or  conversion  of options,
          warrants or rights, were deemed outstanding.  As consideration for the
          sale of Shares to Buyer, Buyer agrees to pay Shareholder

<PAGE>

          200,000,000  shares of common  stock,  $0.15 par  value,  of the Buyer
          (collectively,  the "Exchange Shares" or, the "Purchase  Price").  The
          parties hereto agree that the Shares and the Exchange  Shares shall be
          fully   paid  and   nonassessable,   free  and  clear  of  all  liens,
          encumbrances,  options,  and legal or equitable rights of others not a
          party to this letter.

     2.   Definitive Agreement.  The parties hereto mutually agree to proceed in
          good faith toward  negotiations and execution of the Agreement for the
          Purchase  of  Common  Stock,  which  shall  provide  for the  sale and
          purchase  of the  Shares  and  which  shall  contain  representations,
          warranties,  conditions,  covenants  and  the  like  typical  in  such
          transaction.

     3.   Conditions.  This  letter  is  and,  to  the  extent  applicable,  the
          Agreement  for the  Purchase  of Common  Stock  will be subject to the
          following conditions:

          a.   A complete and  satisfactory due diligence review by the Buyer of
               the books,  records,  business  and affairs of the  Company.  The
               Company agrees to provide Buyer and its agents complete access to
               all of the Company's books, records and personnel for purposes of
               conducting Buyer's investigation;

          b.   A  complete  and   satisfactory   due  diligence  review  by  the
               Shareholder and the Company of the books,  records,  business and
               affairs of the Buyer. The Buyer agrees to provide Shareholder and
               the Company and their respective agents complete access to all of
               the  Buyer's  books,   records  and  personnel  for  purposes  of
               conducting Shareholder's and Company's investigation;

          c.   The  existence at the Closing of no material  liabilities  on the
               books  of the  Company  and  the  Buyer,  and no  undisclosed  or
               contingent liabilities, other than those expressly agreed upon by
               the parties;

          d.   The approvals and consents of all applicable governmental bodies,
               lenders,   lessors,  third  parties,  and  Company's  Buyers  and
               Seller's respective board of directors;

          e.   The  occurrence  of no  material  changes  in the  Company's  and
               Buyer's  business  or  capitalization  between  the  date of this
               letter  and the  date of  Closing,  other  than  as  required  or
               conditioned  herein,  or otherwise  expressly  agreed upon by the
               parties in writing; and,

          f.   The completion and filing by Shareholder, Company and/or Buyer of
               all  documentation,  reports,  schedules  and  other  information
               necessary to bring the Company  and/or the Buyer into  compliance
               with  the  rules  and  regulations  of the  U.S.  Securities  and
               Exchange Commission and the Internal Revenue Service.

     4.   Expenses.  Each  party to this  letter  shall  bear its own  expenses,
          except as specifically

<PAGE>

          provided to the contrary above.

     5.   Indemnification.  The Company  hereby agrees to defend,  indemnify and
          hold  harmless  the  Buyer,  and all of Buyer's  officers,  directors,
          attorneys,  stockholders,  employees  and agents  against  any and all
          expenses  of defense and  investigation  related  thereto,  of any and
          every  nature and  description,  however  incurred,  arising out of or
          related to this letter of intent,  the  Agreement  for the Purchase of
          Common Stock, and any agreements or proceedings related thereto.

               The Buyer hereby  agrees to defend,  indemnify  and hold harmless
          the Shareholders and the Company,  and all of the Company's  officers,
          directors, attorneys,  stockholders,  employees and agents against any
          and all expenses of defense and investigation  related thereto, of any
          and every nature and description,  however incurred, arising out of or
          related to this letter of intent,  the  Agreement  for the Purchase of
          Common Stock, and any agreements or proceedings related thereto.

     6.   Confidentiality.  Buyer hereby agrees that all information provided by
          Shareholder  or  the  company  and  identified  as  "confidential"  by
          Shareholder or the Company will be treated as such, and that the Buyer
          shall not make any use of such information  other than with respect to
          the  transactions  contemplated  by this  letter or by this letter are
          terminated  without the  execution of a definitive  Agreement  for the
          Purchase of Common  Stock,  Buyer shall return to  Shareholder  or the
          Company all such confidential  information in its possession,  or will
          certify to  Shareholder  and the Company that all of such that has not
          been returned has been destroyed.

               Shareholders  and  Company  hereby  agree  that  all  information
          provided by Buyer and  identified as  "confidential"  by Buyer will be
          treated as such, and that the  Shareholder  and Company shall not make
          any  use  of  such   information   other  than  with  respect  to  the
          transactions  contemplated  by this letter or by the Agreement for the
          Purchase  of Common  Stock.  If the  agreements  contemplated  by this
          letter are terminated without the execution of a definitive  Agreement
          for the Purchase of Common Stock, Shareholder and Company shall return
          to Buyer all such confidential information in its possession,  or will
          certify to Buyer that all of such that has not been  returned has been
          destroyed.

     7.   Termination. This letter of intent may be terminated by mutual consent
          of the Buyer, the Shareholder and the Company.

               In the event of such  termination,  all  provisions  hereof shall
          terminate  except  as  provided  in the  initial  paragraph  preceding
          paragraph  1,  above,  except  that if a  party  is in  breach  of its
          obligations  hereunder,  such transaction shall not relieve such party
          of liability for such breach.

     This letter agreement shall be governed by, and construed with, the laws of
the State of  Nevada,  without  giving  effect to  conflict  of laws  principles
thereof,  and in any action to enforce or interpret or arising  under any of the
provisions of this agreement, the parties expressly agree to

<PAGE>

submit to the  jurisdiction  of any  Federal  or State  court  sitting  in Clark
County, State of Nevada.

                                        Sincerely,

                                        VRI, INC.

                                        By:  /S/ Martin F. Cardone
                                             -------------------------------
                                        Name:  Martin F. Cardone
                                        Title: President

ACCEPTED AND AGREED TO as of the date first above written:

ZORRO SYSTEMS LTD.

By:  /S/ Alec Wright
     ---------------------------
Name:  Alec Wright
Title: Chairman

ACCEPTED AND AGREED TO as of the date first above written:

INTELLASHOP INC.

By:  /S/ Alec Wright
     ---------------------------
Name:  Alec Wright
Title: ChairmanSPHERICS LIMITED
                             Victoria House - Box 58
                            The Valley, Anguilla BWI

                                                                  April 19, 2000

Virtual Reality, Inc.
116 John Street - Suite 130
New York, NY 10038

Attn:    Martin F. Cardone
         CEO & Chairman

         Re: Letter Agreement for Operating Capital Financing from Spherics
         Limited

Dear Mr. Cardone,

     This  Letter  Agreement,  when  countersigned  by  you,  shall  be  binding
agreement  between Spherics  Limited (the "Investor") and Virtual Reality,  Inc.
(The "Company") for a Two Million Dollar ($2,000,000)  investment in the Company
in return for Forty  Million  (40,000,000)  restricted  shares of the  Company's
common  stock,  $.015  par  value  (the  "Shares"),  pursuant  to the  terms and
conditions found herein:

1.   Fundamental Terms. The Investor shall invest a total of Two Million Dollars
     ($2,000,000)  (the  "Investment")  in the  Company.  The  Investment  shall
     consist  of One (1)  initial  payment  of  Five  Hundred  Thousand  Dollars
     ($500,000)  and one or more  payments  totaling  One Million  Five  Hundred
     Thousand Dollars  ($1,500,000)(the  "Balance").  The first payment shall be
     made on the One (1) month  anniversary of this Letter Agreement (the "First
     Payment").  The Balance shall be satisfied through a payment schedule to be
     determined by the Parties in a subsequent agreement,  written or otherwise.
     As  consideration  for the Company's sale of the Shares,  the Company shall
     issue the Shares to the Investor,  upon execution of this Letter Agreement.
     The  Shares  shall be fully paid and  nonassessable,  free and clear of all
     liens, encumbrances, options, restrictions and legal or equitable rights of
     others  not a party to this  letter.  The  investment  may take the form of
     equity or loan, or a combination thereof.

<PAGE>

2.   Use of  Proceeds.  The  Investor  anticipates  and intends that the Company
     shall use the Investment to satisfy the operating  capital  requirements of
     Intellashop,  Inc., the Company's intended acquisition (the "Acquisition").
     In  the  event  that  the  Company  does  not  successfully   complete  the
     Acquisition  within One Hundred Twenty (120) days from the date hereof, the
     Company shall promptly return all payments received pursuant to paragraph 1
     of this Letter  Agreement and the Investor  shall,  simultaneous  with such
     remittance, return the Shares to the Company.

3.   Closing. Payment of the First Payment for, and delivery of the Shares shall
     be made at the offices of Beckman,  Millman & Sanders, LLP, 116 John Street
     - Suite 1313, New York, New York 10038,  or at such other place as shall be
     agreed upon by the Investor and the Company,  and shall be made at the time
     and date of execution of this  Agreement  (such payment and delivery  being
     herein called the "Closing").  The time and place of the remaining payments
     of the Balance shall be made as shall agreed upon subsequent to this Letter
     Agreement by the Investor and the Company.

4.   Expenses. Each party to this Letter Agreement shall bear its own expenses.

5.   Indemnification.  The Company  hereby agrees to defend,  indemnify and hold
     harmless  the  Investor,   and  all  of  Investor's  officers,   directors,
     attorneys, stockholders,  employees and agents against any and all expenses
     of defense  and  investigation  related to this  Letter  Agreement  and any
     agreements or proceedings related thereto.

6.   Confidentiality.  Investor hereby agrees that all  information  provided by
     the Company and identified as "confidential" by the Company will be treated
     as such, and that the Investor  shall not make any use of such  information
     other than with  respect to the  transaction  contemplated  by this  Letter
     Agreement.  If the agreements  contemplated  by this letter are terminated,
     Investor shall return to the Company all such  confidential  information in
     its  possession,  or will  certify to the Company that all of such that has
     not been returned has been destroyed.

7.   Termination.  This  letter  of  intent  may not be  terminated  unless  the
     Investor  and the Company  have agreed to such in writing.  In the event of
     such termination, all provisions hereof shall terminate.

<PAGE>

8.   Governing  Law. This letter  agreement  shall be governed by, and construed
     with, the laws of the State of New York,  without giving effect to conflict
     of laws  principles  thereof,  and in any action to enforce or interpret or
     arising  under  any  of the  provisions  of  this  agreement,  the  parties
     expressly agree to submit to the jurisdiction of any Federal or State court
     sitting in New York County, State of New York.

                                        Sincerely,

                                        SPHERICS LIMITED

                                        By:  /S/ John O. Dyrud
                                             -------------------------------
                                             Name:  John O. Dyrud
                                             Title: Corporate Counsel and
                                                        Authorized Agent

ACCEPTED AND AGREED TO as of the date first above written:

VIRTUAL REALITY, INC.

By:  /S/ Martin F. Cardone
     ----------------------------
     Martin F. Cardone
     CEO and Chairman

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