Document:

LICENCE AGREEMENT
                               -----------------

      THIS AGREEMENT MADE the 28th day of October, 2003.

BETWEEN:

                 WAL-MART CANADA CORP., carrying on business as
                                  "SAM'S CLUB"

                      (hereinafter called the "Licensor")

                                                               OF THE FIRST PART

                                     -and -

                              3577996 CANADA INC.

                      (hereinafter called the "Licensee")

                                                              OF THE SECOND PART

WHEREAS:

1.    the Licensor is the owner and operator of a chain of membership  warehouse
      clubs  under the trade  name/trade  mark SAM'S  CLUB at several  locations
      within Canada;
2.    the  Licensee  has  requested  and the  Licensor  has  agreed  to grant it
      licences to operate  certain  cellular  telephone  service  sale kiosks in
      certain of the Licensor's clubs;
3.    the Licensor and the Licensee  wish to enter into this  Agreement  for the
      purposes of establishing the framework within which the aforesaid licences
      shall operate;

      NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual
covenants,  conditions and agreements herein contained,  other good and valuable
consideration  and the sum of Five  Dollars  ($5.00)  paid by each  party to the
other  (the  receipt  and  sufficiency  of which are hereby  acknowledged),  the
parties hereto do hereby covenant and agree, each with the other, as follows:

1.00  Definitions and Recitals

1.01  For the  purposes of this  Agreement  the  following  terms shall have the
      meanings hereafter ascribed to them:

      "Business  Day" shall mean any day of the week except a Saturday,  Sunday,
      or a statutory holiday in the Province of Ontario;

      "Clubs" shall mean those  membership  warehouse  establishments  owned and
      operated by the Licensor from time to time (including,  without in any way
      limiting the generality of the foregoing, any indoor or enclosed mall area
      within  which  the  Licensor  is  entitled  to sell  merchandise)  as more
      particularly  set forth in the Licence  Schedules;  and "Club"  shall mean
      any one of the Clubs;

      "Gross  Sales" shall mean the entire  amount of all revenue and  receipts,
      whether from cash, cash equivalent,  credit, or otherwise, of all sales of
      merchandise  (including  gift  and  merchandise  certificates),   services
      provided, and any other business activity conducted in connection with the
      Licensee's  Businesses,  including  mail or telephone  orders  received or
      filled in connection with any of the Licensee's  Businesses,  deposits not
      refunded to  purchasers,  orders taken  although said orders may be filled
      elsewhere,  sales to employees,  sales through  vending  machines or other
      devices,  and  sales  by  a  concessionaire,  licensee,  third  person  or
      otherwise  in  relation  to the  Licensee's  Businesses.  Each  sale  upon
      installment or credit shall be treated as a sale for the full price in the

<PAGE>

                                       2

      year  during  which  such  sale was  made,  irrespective  of the time when
      Licensee receives payment from its customer. No deduction shall be allowed
      for uncollected or uncollectable credit accounts; "Gross Sales" shall not,
      however,  include  (i) any sums  collected  and paid out for any  sales or
      goods  and  services  tax  imposed  by any duly  constituted  governmental
      authority  on  any  sale  effected  in  connection   with  the  Licensee's
      Businesses; (ii) the exchange of merchandise between the various locations
      of the  Licensee,  if any,  where such  exchanges  are made solely for the
      convenient  operation  of the  business  of the  Licensee  and not for the
      purpose  of  consummating  a sale  which  has  theretofore  been  made  in
      connection with one of the Licensee's Businesses and/or for the purpose of
      depriving the Licensor of the benefit of a sale which  otherwise  would be
      made in connection with one of the Licensee's Businesses; (iii) the amount
      of returns to  shippers  or  manufacturers,  nor the amount of any cash or
      credit refund made upon any sale where the merchandise  sold, or some part
      thereof, is thereafter returned by purchaser and accepted by the Licensee;
      or (iv) sales of the Licensee's trade fixtures;

      "Licence  Schedule"  shall mean the  executed  licence  schedules  forming
      Schedule "A-l to and including A-4" attached  hereto and forming a part of
      this Agreement, together with any New Club Licence Schedules;

      "Licensee's  Business"  shall mean the  operation of a cellular  telephone
      service sale kiosk within a Licensed  Premise,  whereby only the following
      services are provided to members of the Clubs: cellular telephone services
      representing  no less than three (3) carriers  operating in Canada (unless
      otherwise agreed by Licensor),  internet services and satellite television
      services  together with such other services  and/or  merchandise as may be
      approved  by the  Licensor  in  writing  from  time to time,  in its sole,
      absolute and unfettered discretion, which approval may be withheld for any
      or no reason whatsoever and which may be subject to removal of an existing
      type of merchandise  previously approved by Licensor.  Notwithstanding the
      foregoing and for greater  certainty,  the  Licensee's  Business shall not
      include the sale of any  merchandise  or provision of any service which in
      the sole,  absolute and  unfettered  opinion of the Licensor  from time to
      time,  conflicts  with any aspect or  category of the  merchandise  and/or
      services sold by the Licensor; and "Licensee's Businesses" shall mean more
      than one or all of the Licensee's Businesses collectively, as the case may
      be;

      "Licensed  Premise"  shall mean such  physical  area  within a Club as the
      Licensor  shall  designate  from time to time in its sole,  absolute,  and
      unfettered  discretion for the Licensee's Business,  with respect to those
      Clubs for which a Licence  Schedule has been  executed by the parties from
      time to time. For greater certainty  "Licensed  Premise" shall not include
      any  Licensed  Premise  with  respect  to which  the  application  of this
      Agreement  has been  terminated  save and except as referred to in Article
      12.00 and any other  provision of this Agreement  expressed to survive the
      termination of this  Agreement;  and "Licensed  Premises"  shall mean more
      than one or all of the Licensed Premises collectively, as the case may be;

      "Monthly Licence Fee" shall mean in respect of each individual  Licensee's
      Business,   unless  otherwise  specified  in  a  Licence  Schedule  for  a
      particular Licensee's Business, one thousand dollars ($1000);

      "New  Club  Licence  Schedule"  shall  mean a new  club  licence  schedule
      executed  by the parties in  substantially  the form set forth in Schedule
      "B" attached hereto and forming part of this Agreement;

      "Percentage  Licence  Rate"  shall  mean in  respect  of  each  individual
      Licensee's Business unless otherwise specified in a Licence Schedule for a
      particular Licensee's Business, nine (9%) percent;

      "Year" shall mean the twelve (12) month period from and including February
      1 of each  calendar  year to and  including  January  31 of the  following
      calendar year. Notwithstanding the foregoing, the first "year" of the Term
      with respect to each of the Licensee's Businesses shall be the period from
      and including  the  Commencement  Date to and including  January 31 of the
      calendar year following that within which the Commencement Date falls.

..02   The  recitals  hereinbefore  contained  are true and  correct  and form an
      integral part of this Agreement.

<PAGE>

                                        3

      Licence

2.01 Subject to the provisions of this Agreement,  the Licensor hereby grants to
the  Licensee  the  non-exclusive  right and licence to carry on the  Licensee's
Businesses  during  the  Term  for the  purposes  set  forth  in  section  5.01.
Notwithstanding  the  foregoing,  the  sales  area of the  Licensee  is to be an
integral part of each Club,  and neither party shall limit access thereto or the
flow of Club  member  traffic  through  such area.  For greater  certainty,  the
Licensor shall at all times  maintain  care,  control and access to the Licensed
Premises.

2.02 The Licensor shall be entitled from time to time to unilaterally relocate a
Licensed Premise within a Club for any reason whatsoever acting  reasonably,  by
the  delivery of written  notice to that effect to the  Licensee.  The  Licensor
shall  be  further  entitled  if the  Licensor  ceases  operation  of a Club and
commences the  operation of a new Club in the same market area, to  unilaterally
relocate the Licensed  Premise of the old Club to the new Club,  by the delivery
of written  notice to that effect to the Licensee.  The Licensee  shall,  comply
with  the said  notice  and  effect  such  work as the  Licensor  stipulates  is
necessary for it to make the Licensed  Premise comply with the said notice,  and
the Licensor shall reimburse the Licensee for reasonable costs actually incurred
to effect such  relocation  (which for greater  certainty  shall not include any
charge for  administrative  work or overhead of the Licensee connected with such
move,  or for any loss of  business  or lack of trade  during any period  within
which the Licensee's  business  operations are interrupted by the Licensor).  In
the event that any such  relocation  precludes the Licensee  from  operating its
business  as a result  of work  necessary  to be  effected  by the  Licensor  to
facilitate  such  relocation,  the  Licensee  shall not be  required  to pay the
Monthly  Licence Fee in connection  with the affected  Licensed  Premise for the
period of such interruption.  The Licensor shall be entitled, acting reasonably,
to  designate  the time and  manner  within  which the  aforesaid  work shall be
effected by the Licensee by the  inclusion of same in the aforesaid  notice,  in
which case the Licensee  shall  comply with same.  The  Licensee  covenants  and
agrees to effect  such work in a diligent  and  expedient  fashion and to ensure
that the area wherein the Licensed  Premise was formerly  located is restored to
its original condition.

2.03 The Licensee, its employees,  agents,  contractors,  service personnel, and
customers shall have,  subject to section 2.04, in common with all other persons
entitled thereto,  free access to and use of all entrances,  stairways,  aisles,
corridors,  washrooms,  and other areas open to Club members  within a Club from
time to time as the Licensor shall designate during such time(s) as the Licensee
shall operate its business within the Licensed Premise in such Club.

2.04  Notwithstanding  section  2.03,  the  Licensee,  its  employees,   agents,
contractors,  and service personnel shall only have access to such portions of a
Club as the Licensor or its Club manager shall  designate  from time to time for
the purpose of  transporting  supplies,  equipment,  merchandise,  goods,  trade
fixtures,  and/or such other  chattels as the  Licensee may require from time to
time,  to and from the Licensed  Premise.  The Licensor  shall retain  exclusive
possession  and  control  of all  keys  and  security  codes to the Club and its
security systems.

2.05 The Licensor  shall have the right to install  through or upon the Licensed
Premises such pipes,  aisles,  conduits,  wires,  apparatus,  and other physical
installations  in connection  with any service system as may be proper or useful
for the  Licensor's  operations,  but  the  same  shall  be  installed  so as to
interfere  as  little  as  possible  with  the  Licensee's  use of the  Licensed
Premises.

2.06 The Licensee acknowledges that it has examined the Licensed Premises in the
Clubs and is thoroughly  familiar  with the  condition  thereof and accepts each
Licensed Premise in the condition  existing as at their respective  Commencement
Dates.

2.07 In the event  that the  parties  shall from time to time  desire  that this
Agreement  shall  extend  to any  additional  retail  premises  operated  by the
Licensor,  the parties shall give effect to same by executing a New Club Licence
Schedule.

      Term

3.01 Subject to section 3.02, this Agreement and the licences  created  pursuant
to this Agreement  shall commence on the date  hereinabove set forth and subject
to earlier termination as provided for in this Agreement, continue in effect for
a term ending at 12:00 midnight on the 29th day of October, 2005 (the "Term").

<PAGE>

                                       4

3.02  Notwithstanding  the  foregoing,  in the  event  that a  Licence  Schedule
stipulates a later or earlier date of expiration  than that set forth in section
3.01, the "Term" in respect of the Licensee's  Business governed by such Licence
Schedule  shall end at 12:00  midnight on the date set forth in the said Licence
Schedule.

4.00 Licence Fees

4.01 The Licensee shall pay to the Licensor in respect of each of the Licensee's
Businesses,  the Monthly Licence Fee each month of the Term, in advance,  on the
first  day of  each  calendar  month,  commencing  with  respect  to each of the
Licensee's  Businesses  from  and  including  the  date  upon  which  each  such
Licensee's Business becomes subject to this Agreement (the "Commencement Date").
If the Commencement  Date falls on a date other than the first day of a calendar
month, the Licensee shall pay to the Licensor on the  Commencement  Date the sum
equal to the Monthly Licence Fee apportioned for the number of days remaining in
the calendar month from and including the  Commencement  Date to the end of that
calendar month.

4.02 In addition to the Monthly  Licence Fee, the Licensee shall also pay to the
Licensor a further  amount  equal to the  amount,  if any,  by which the product
derived by  multiplying  the total Gross Sales made by Licensee,  its employees,
concessionaires,  agents,  licensees,  contractors,  successors  and  assigns in
connection  with such  Licensee's  Business  during  the  immediately  preceding
calendar  month by the Percentage  Licence Rate exceeds the Monthly  Licence Fee
for such immediately  preceding  calendar month (the "Percentage  Licence Fee").
The Licensee  shall pay the  Percentage  Licence Fee to the Licensor  monthly in
arrears on the 15th day of each  calendar  month.  For greater  certainty,  such
payments  shall be made with  respect  to the Gross  Sales  attributable  to the
immediately preceding calendar month.

4.03 In addition,  the  Licensee  shall bear the cost of and pay to the Licensor
all  applicable  sales,  goods and  services,  value  added and other taxes (the
"Taxes") exigible from time to time with respect to any payment by it under this
Agreement,  in accordance with the provisions of the  legislation  imposing such
tax or taxes.  The Licensee shall pay the Taxes to the Licensor on the date that
it is required to make the payment to the Licensor to which such Taxes apply.

4.04 In the event that the Gross Sales in respect of any Licensee's Business are
less than  $7,700 per month for three (3)  consecutive  months  during the Term,
Licensor may terminate  this Agreement or any license  created  pursuant to this
Agreement in respect of the applicable Licensee's Business.

4.05 The Licensee shall deliver to the Licensor on the 15th day of each calendar
month,  a sales  report  (the  "Sales  Report")  for the  immediately  preceding
calendar month period containing such information and in the format set forth in
Schedule "C" attached hereto and forming a part of this  Agreement.  For greater
certainty,  the parties  acknowledge  and agree that the Sales  Report  shall be
prepared both individually for each of the Licensee's  Businesses and for all of
them  collectively,  and shall specify such  information as is  contemplated  by
Schedule "C" attached hereto and forming a part of this Agreement.  The Licensee
further covenants to provide a Sales Report detailing the foregoing  information
for the immediately preceding year applicable to the Licensee's  Businesses,  on
the date which is twenty-one (21) days following the completion of the Term. The
Licensee  covenants  and  agrees to make all of its  records  pertaining  to the
Licensee's Businesses available to the Licensor and/or its agents for inspection
and/or audit  forthwith  following the receipt by it of five (5) Business  Day's
prior written notice from the Licensor  requesting same. The Licensee  covenants
and agrees to retain all such  records for a minimum of two (2) years  following
the end of each year of the Term. The Licensee shall provide the Sales Report to
the Licensor prepared using Microsoft  Excel(TM) on a 3.5 inch computer disk, as
well as on paper.

4.06 The Licensee  covenants  and agrees to re-adjust  any Monthly  Licence Fee,
Percentage  Licence  Fee,  and/or  Taxes  that it has paid  from time to time in
amounts that are less than the amounts provided for in this Agreement  forthwith
following a request therefor from the Licensor,  and/or forthwith  following its
becoming aware that it has effected such an underpayment  to the Licensor.  If a
Sales  Report  submitted  by the  Licensee  in respect of one of the  Licensee's
Businesses  is  found  to be  incorrect,  so  that  such  error  resulted  in an
under-reporting  of Gross Sales to the  Licensor  equal to or greater than three
(3%)  percent  of the Gross  Sales  originally  reported  to the  Licensor,  the
Licensee  shall pay all costs  incurred  by the  Licensor  with  respect  to any
audit(s) and/or inspection(s) of the Licensee's books and records for all of the
Licensee's  Businesses which uncovered such error,  including,  without limiting
the  generality  of the  foregoing,  the costs of any internal  and/or  external
auditors,  accountants, and/or associates of the Licensor directly involved with
such process.

<PAGE>

                                       5

4.07 The Licensee shall pay to the Licensor  interest on any monies owing to the
Licensor  under  this  Agreement  at the  rate of the  annual  rate of  interest
announced  from time to time by The  Toronto-Dominion  Bank as a reference  rate
then in effect for  determining  interest  rates on Canadian  dollar  commercial
loans in Canada plus 2%. Such  interest  shall  accrue from the date such monies
first  become  due and  payable  to the  Licensor  and shall be  calculated  and
compounded semi-annually.

4.08  The   Licensee   covenants   and  agrees  to   deliver  to  the   Licensor
contemporaneously with its execution of this Agreement,  and if requested by the
Licensor from time to time,  contemporaneously  with its execution of a New Club
Licence Schedule,  copies of all of its then most current financial  statements,
including  without  limiting the  generality of the  foregoing,  balance  sheet,
income  statement,  statement  of retained  earnings,  and cash flow  statement,
whether  or not same  have  been  independently  audited  and/or  prepared  by a
chartered  accountant.  In addition to the  foregoing,  in the event that any of
such  financial  statements  shall be audited  and/or  prepared  by a  chartered
accountant from time to time, the Licensee shall forthwith deliver copies of any
audit report or other report as to the adequacy of such financial  statements to
the  Licensor.  The  Licensor  covenants  and agrees to maintain  any  financial
statements  and/or other  information  provided to it under this section 4.08 in
the  strictest  of  confidence  and shall not  disclose any of same to any other
person.

5.00 Use of Licensed Premises

5.01 The Licensee shall be entitled to use each Licensed Premise for the purpose
of carrying on the Licensee's Business and for no other purpose, save and except
for such other  purpose as the Licensor may approve in writing from time to time
following  the receipt of a written  request  therefor  from the Licensee  which
approval may be withheld for any or no reason whatsoever.

5.02 The Licensee  covenants  and agrees that,  unless  otherwise  agreed by the
parties in respect of a particular  item, the price of all  merchandise  offered
for sale at each Licensed  Premise in connection  with the  Licensee's  Business
shall at any time and from time to time be at least ten percent  (10%) less than
the lowest price of substantially  similar merchandise offered for sale anywhere
in Canada by Licensee other than in connection  with the Licensee's  Businesses,
excluding  where the price on certain  merchandise  has been reduced solely as a
result of the purchase of a corresponding service contract and further excluding
prepaid cards  relating  solely to the purchase of cellular  telephone air time.
The Licensee further covenants and agrees that the price of all services offered
for sale at each Licensed  Premise in connection  with the  Licensee's  Business
shall at any time and from  time to time be the same or lower  than the price of
similar  services  offered for sale anywhere in Canada by Licensee other than in
connection with the Licensee's  Businesses.  Without  limiting the generality of
the foregoing, Licensor shall be entitled to prohibit Licensee from offering for
sale or from  continuing to offer for sale, as  applicable,  any  merchandise or
services  where  Licensor  determines  in  its  sole,  absolute  and  unfettered
discretion,  that the pricing of such  merchandise or services is too high to be
consistent with the Licensor's philosophies, culture and standards in force from
time to time.

5.03 The Licensee  shall carry on each of the Licensee's  Businesses  during the
entirety of such hours as the Licensor  shall  specify from time to time, in its
sole  absolute and  unfettered  discretion,  as its hours of  operation  for the
applicable  Club,  or such lesser  hours as the  Licensor  may  designate by the
delivery of written notice to that effect to the Licensee.

5.04 The Licensee hereby acknowledges that its business reputation, intended use
of the Licensed Premises as set forth in section 5.01,  potential for payment of
Percentage  Licence  Fees and  ability to  generate  patronage  to the  Licensed
Premises  and the Clubs  were all  relied  upon by the  Licensor  and  served as
significant and material inducements  contributing to the Licensor's decision to
enter into this Agreement with the Licensee.  The Licensee hereby  covenants and
agrees: (i) to carry on the Licensee's Businesses under no trade name whatsoever
without the  Licensor's  prior  written  consent  which may be withheld  for any
reason  whatsoever,  (ii) to commence on the  Commencement  Date and  thereafter
continuously  use the  Licensed  Premises  for the  retail  sale of its goods or
services in accordance with its permitted use set forth in section 5.01,  during
the hours designated by the Licensor pursuant to section 5.03.

<PAGE>

                                       -6-

      Operating Standards / Member Complaints

6.01 The Licensee  shall  operate its business in an  efficient,  high class and
reputable  manner.  In  addition,  the  Licensee  will  conduct all  business in
conjunction  with  and  abiding  by the  Licensor's  philosophies,  culture  and
standards in force from time to time. The Licensee agrees with the Licensor that
the Licensee's business will be operated in a diligent and business-like  manner
in conformity with the Licensor's  standards and policies as may be amended from
time  to  time.  The  Licensee's  employees  will  at all  times,  while  on the
Licensor's  premises,  maintain a pleasant and  courteous  attitude  toward Club
members.  While on the Licensor's  premises,  the Licensee's  employees shall be
subject to the Licensor's  rules and  regulations as may be amended from time to
time. No smoking, food or drink will be allowed on the sales floor. The personal
appearance  of the  Licensee's  employees,  agents and workmen  must be neat and
clean.  The Licensee will instruct each employee to refer to the Licensor's Club
management for details on all such rules and regulations. The Licensee shall not
permit any odours or noise which are objectionable or unpleasant to the Licensor
or its members to emanate  within a Club nor take any other  action  which would
constitute a nuisance or would disturb or endanger the Club members or occupants
of the Club,  nor do anything  which would tend to injure the  reputation of the
Club or the Licensor.

6.02 The Licensee  shall not conduct  within the  Licensed  Premises any "fire",
"bankruptcy",  "going-out-of-business,"  "liquidation,"  or other  similar sale,
and/or  operate within the Licensed  Premises a "wholesale" or "factory  outlet"
store, a  "cooperative  store",  a "second hand" store,  a "surplus"  store or a
store commonly referred to as a "discount house".

      The Licensee  shall  maintain all its displays in a neat,  and  attractive
condition at all times.

6.04 The Licensee shall be solely  responsible for the control and management of
its  operations,  employment  practices  and  labour  relations  concerning  the
Licensee's  employees  and other persons  rendering  services to it. For greater
certainty,  the  Licensee  shall have the sole and  exclusive  control  over its
employees  employee  relations policies and policies relating to wages, hours of
work,  working  conditions,  and conditions of its  employees,  and the sole and
exclusive right to hire, transfer,  suspend, lay off, recall,  promote,  assign,
discipline, adjust grievances, and discharge said employees.

6.05 If the Licensor has any  complaint  concerning  any employees of or persons
rendering  services to the Licensee,  the Licensor  shall inform the Licensee of
said complaint. The Licensee shall forthwith thereafter take such actions as the
Licensee  deems  appropriate to rectify the subject matter of such complaint and
to prevent any similar recurrence in the future.

6.06 All Club member complaints  involving the Licensee that are received by the
Licensor  shall  be  referred  to an  employee  of the  Licensee  who  shall  be
designated  by the  Licensee as its  designated  corporate  representative.  The
Licensee  shall use its best  efforts to respond  to these  complaints  within a
reasonable  period after receipt of same by the Licensee and the Licensee  shall
make a diligent effort to promptly resolve  complaints or otherwise satisfy Club
members'  concerns  and,  if so  requested  by the  Licensor,  shall  advise the
Licensor  of the  status of any  complaint  and the  efforts  made to resolve or
satisfy  same.  In the event the  Licensor  receives  over five (5) Club  member
service  complaints  in any form  (i.e.,  telephone,  written,  oral,  etc.) per
Licensee's  Business  during any year, the Licensee will reimburse the Licensor,
within  fifteen (15) days of notice of  complaint,  the amount of fifty  dollars
($50.00) per complaint for administrative  services.  Said charge is in addition
to and not in  substitution  for any other  remedies  available  to the Licensor
under this Agreement, at law, or in equity.

6.07 The Licensee shall not, without the Licensor's prior written consent, which
may be withheld for any or no reason, keep anything within a Licensed Premise or
use a Licensed  Premise for any activity which  increases the insurance  premium
cost or invalidates  any insurance  policy carried by any person with respect to
the Club or any part thereof. All property kept, stored or maintained within the
Licensed  Premises by or on behalf of the  Licensee  shall be at the  Licensee's
sole risk.

6.08 The Licensor  shall maintain and repair the Clubs within which the Licensed
Premises  are  located  to  the  standard  that  it  deems  acceptable,   acting
reasonable, so as to permit the Licensee to operate its business therein.

<PAGE>

                                       -7-

7.00 Kiosk Construction/Alterations

7.01 The area of each  Licensed  Premise  shall be no greater  than  eighty (80)
square feet.

7.02 The Licensee shall not make any replacements,  improvements, alterations or
renovations  to any  part  of a  Licensed  Premise  (save  and  except  for  the
installation  and removal of  non-affixed  movable trade  fixtures  which may be
installed without drilling,  cutting or other physical alteration of any part of
the building within which the Club is located  (referred to in this Agreement as
"trade  fixtures"))  from  that  approved  by  the  Licensor  pursuant  to  this
Agreement,  without  the prior  written  consent of the  Licensor,  which may be
withheld for any or no reason.

7.03 All alterations,  additions, improvements and fixtures (save and except for
trade fixtures,  unattached readily movable furniture and office equipment) that
may be made or installed by the Licensee within a Licensed  Premise shall remain
upon and be  become  the  property  of  Licensor  upon the  termination  of this
Agreement with respect to such Licensed  Premise,  unless the Licensor  requests
their removal in which event the Licensee  shall  forthwith  remove the same and
restore such  Licensed  Premise to its  original  condition at its sole cost and
expense.

7.04 All construction  work done by the Licensee within a Licensed Premise shall
be performed in a good and workmanlike  manner to a standard which is acceptable
to the Licensor, in its sole, absolute and unfettered discretion,  in compliance
with all governmental requirements,  and in such manner as to cause a minimum of
interference  with other  construction  in progress and with the  transaction of
business in the Club.

7.05 The  Licensee  covenants  and agrees not to permit any  construction  lien,
claim for lien, or other lien to arise and/or be registered against the title to
the property upon which a Club is located as a direct or indirect  result of any
work undertaken by it or on its behalf in respect of a Licensed Premise.  In the
event that any such lien shall  arise,  the  Licensee  covenants  and agrees to,
forthwith following becoming aware of same, take all possible action,  including
without  limitation  the payment of the monies  claimed into court,  in order to
have  such lien  removed  from the title to the  property  upon  which a Club is
located within five (5) Business Days thereafter. In the event that the Licensee
defaults in the aforesaid  obligation,  the Licensor shall be entitled, if it so
chooses,  to undertake the  Licensee's  obligations on its behalf and to invoice
the Licensee for all costs,  including  without  limitation  legal fees in their
entirety,  associated  with same,  which shall be payable by the Licensee to the
Licensor  forthwith  upon receipt by the Licensee of a written  demand  therefor
from the Licensor.  The  foregoing  remedy of the Licensor is in addition to and
not  substitution  for any other  remedies  available to the Licensor under this
Agreement, at law, or in equity.

8.00 Insurance

8.01 The Licensee shall, at its sole cost and expense, take out and keep in full
force  and  effect at all  times  during  the  Term,  with an  insurer  which is
acceptable  to  the  Licensor,  a  comprehensive  commercial  general  liability
insurance  policy for bodily injury and property damage with limits in an amount
of not less than Two Million ($2,000,000.00) Dollars per occurrence. Such policy
of insurance shall include coverage for personal injury liability, bodily injury
liability,   contractual  liability,   business  interruption  relating  to  the
Licensor's operations in any Club, liability for damage to or losses relating to
the Licensed Premises and any chattels, property,  merchandise,  trade fixtures,
or monies located therein from time to time, and "all-risk" liability insurance,
such  coverage to include the business  operations  conducted by the Licensee on
the  Licensed  Premises.  Such policy of  insurance  shall be  endorsed  with an
endorsement  providing  that no  cancellation  of such policy will be  effective
unless the Licensor  shall have  received at least sixty (60) days prior written
notice of such  cancellation.  The Licensee shall cause such policy of insurance
to name the Licensor as an  additional  insured and be endorsed with a waiver of
subrogation  provision in favour of the  Licensor.  The  Licensee  shall cause a
certificate of insurance  executed by the insurer named in the applicable policy
or policies of insurance or an insurance  broker duly authorized by such insurer
to execute  such  certificate  with  respect  to such  policy of  insurance  and
endorsements,  to be delivered to the Licensor  concurrently with the Licensee's
execution of this Agreement  and/or from time to time following the receipt of a
written request therefor from the Licensor.

<PAGE>

                                      -8-

8.02 The  Licensee  covenants  and agrees to  register  itself  and all  persons
engaged  for  service  in  connection  with  the  operation  of  the  Licensee's
Businesses  within  the  Licensed   Premises  under  the  workers   compensation
legislation applicable to a Licensed Premise and to maintain such coverage(s) in
good standing throughout the Term.

      Compliance with Laws

9.01 The Licensee shall, at its sole cost and expense,  promptly comply with all
statutes, regulations,  ordinances, rules, laws, and other legal stipulations of
any  governmental  authority  having  jurisdiction  with  respect  to a Licensed
Premise,  pertaining to the  Licensee's  occupancy of, work  undertaken  within,
and/or business  operations(s) within a Licensed Premise. For greater certainty,
the parties  acknowledge and agree that the Licensee shall be solely responsible
to procure and  maintain at all times  during the term of this  Agreement or any
renewal  thereof,  any and all  permits  and/or  approvals  of any  governmental
authority having  jurisdiction  with respect to the Licensed Premise required in
order to occupy,  undertake improvements,  and operate its business therein, and
the Licensor shall have no obligations in this regard whatsoever.

10.00 Confidentiality

10.01 The  Licensee  acknowledges  and  agrees  that  certain  information  made
available to it from time to time by the Licensor,  including  without  limiting
the generality of the foregoing,  information regarding the opening dates of any
Clubs to its members,  as well as information  disseminated at any management or
other  meeting(s)  held by the Licensor at the Clubs, is confidential in nature.
For the purposes of this Agreement,  such confidential  information (hereinafter
referred  to  as  "Wal-Mart  Confidential  Information")  shall  be  defined  as
information  received  by the  Licensee,  its  agent or  employees  which is not
generally known in the industry in which the Licensor is engaged, or which would
logically be considered  confidential and/or proprietary,  or which would do the
Licensor harm if divulged, or which is marked "Confidential" or "Proprietary" by
the Licensor.  Wal-Mart  Confidential  Information  shall not either directly or
indirectly  be  disclosed  to others or used in any way by the Licensee or those
for whom it is responsible at law,  without the prior written  permission of the
Licensor,  which may be withheld for any reason  whatsoever.  The  provisions of
this section  shall  survive and remain in full force and effect  following  any
termination of this Agreement and/or the application of this Agreement to any of
the  Licensee's  Businesses.  The Licensee shall not use any trade mark owned or
licensed by the  Licensor,  the name of the Licensor or  otherwise  refer to the
Licensor  in any  marketing  or  promotion  undertaken  by or on  behalf  of the
Licensee  without the prior written  permission  of the  Licensor,  which may be
withheld for any or no reason whatsoever.

10.02 The Licensor  covenants and agrees to maintain all  financial  information
provided to it by the Licensee under or as a result of this Agreement, including
without  limitation the amount of the Gross Sales,  in the strictest  confidence
and shall not disclose same to any other person.

      Parking

11.01 The Licensee shall comply with such rules and  regulations as the Licensor
may stipulate from time to time with respect to the parking of motor vehicles in
the  vicinity of any Club.  In addition to the  foregoing,  the  Licensee  shall
provide  the licence  plate  numbers of all  automobiles  of the  Licensee,  its
employees,  agents,  and workmen,  which are to be parked in the vicinity of any
Club, and such persons shall only park in those areas designated by the Licensor
as employee parking from time to time.

      Default

12.01  For the  purposes  of this  Agreement,  any one or more of the  following
events  shall  constitute  a  material  default  ("Material  Default")  of  this
Agreement:

      (a)   failure of the Licensee to pay the Monthly  Licence Fee,  Percentage
            Licence Fee, and/or Taxes on the date that same is due in accordance
            with the provisions of this Agreement;

<PAGE>

                                      -9-

      (b)   any change of control (as defined by the Income Tax Act (Canada)) of
            the Licensee with respect to which the prior written  consent of the
            Licensor has not been  obtained,  which  consent may be withheld for
            any or no reason whatsoever;

      (c)   failure of the Licensee to fully comply with its  obligations  under
            Article 8 hereof;

      (d)   failure of Licensee to fully comply with any  obligation  under this
            Agreement,  the result of which,  in Licensor's  sole,  absolute and
            unfettered  discretion,  could  have a  material  adverse  effect on
            Licensor's operations and/or reputation;

      (e)   the Licensee shall (i) generally not pay its debts as they fall due;
            (ii) admit in writing its inability to pay its debts  generally,  or
            shall make a general assignment for the benefit of creditors;  (iii)
            institute or have instituted  against it any proceeding  seeking (A)
            to  adjudicate  it a bankrupt  or  insolvent,  (B) any  liquidation,
            winding-up,  reorganization,  arrangement,  adjustment,  protection,
            relief or  composition  of it or its debts under any law relating to
            bankruptcy,  insolvency or  re-organization  or relief of debtors or
            otherwise,  or  (C)  the  entry  of  an  order  for  relief  or  the
            appointment of a receiver,  trustee or other similar official for it
            or any substantial  part of its assets,  and in the case of any such
            proceeding  instituted against it (but not instituted by it), either
            such proceeding shall remain undismissed or unstayed for a period of
            thirty (30) days,  or any of the actions  sought in such  proceeding
            (including  the  entry  of an order  for  relief  against  it or the
            appointment  of a  receiver,  trustee,  custodian  or other  similar
            official  for it or for any  substantial  part of its assets)  shall
            occur;  or (iv) take any  corporate  action to authorize  any of the
            foregoing actions; and/or

      (f)   failure of the Licensee to fully comply with its  obligations  under
            section 4.08 and/or section 7.05.

12.02 In the event that a Material  Default shall occur,  the Licensor  shall be
entitled at any time  thereafter  to  terminate  this  Agreement  or the license
created  pursuant  to this  Agreement  in respect of the  applicable  Licensee's
Business(es)   and  the   application  of  this  Agreement  to  such  Licensee's
Business(es)  (as the case may be) by the  delivery  of  written  notice to that
effect to the  Licensee,  and upon the  delivery of such  written  notice to the
Licensee this Agreement or such license(s) and the application of this Agreement
to such Licensee's Business(es) (as the case may be) shall, subject to any other
provision  contained  herein which is expressed to survive such  termination  of
this  Agreement,  be at an end.  The  parties  acknowledge  and  agree  that the
occurrence  of a Material  Default  shall be incapable of  rectification  by the
Licensee,  save and except for a Material  Default under section  l2.01(a) which
can be remedied by making payment in full together with all interest  applicable
thereto under this Agreement, within ten (10) days following the date upon which
same was originally due, failing which such Material Default shall thereafter be
incapable of rectification by the Licensee.

12.03 In the event  that the  Licensee  shall at any time fail to fully  perform
and/or comply with any  provision  contained in this  Agreement,  other than one
giving rise to a Material Default, and the Licensor shall have delivered written
notice to the Licensee  requiring the  rectification  of same, in the event that
such  rectification  shall not have been made by the date  which is thirty  (30)
days  following the date of delivery of the aforesaid  notice to the Licensee to
the  satisfaction  of  the  Licensor  in  its  sole,  absolute,  and  unfettered
discretion,  the Licensor shall be entitled at any time  thereafter and prior to
the  rectification  by the  Licensee  of any such  default,  to  terminate  this
Agreement or the license  created  pursuant to this  Agreement in respect of the
applicable Licensee's Business(es) and the application of this Agreement to such
Licensee's  Business(es).  Such termination shall be effected by the delivery of
written  notice of  termination  to the Licensee,  and upon the delivery of such
written  notice to the Licensee  such  license(s)  and the  application  of this
Agreement to such Licensee's  Business(es) shall, subject to any other provision
contained  herein  which  is  expressed  to  survive  such  termination  of this
Agreement, be at an end.

12.04 The Licensee  acknowledges and agrees that the Licensor may be a tenant of
a Club. In the event that:  (i) the  Licensor's  right to occupancy of a Club is
terminated  for any reason  whatsoever,  (ii) damage is caused to the Club which
necessitates repairs taking in excess of sixty (60) days within which to restore
the Club to a condition capable of operation as a retail  establishment,  and/or
(iii) the Licensor  elects to cease operation of a membership  warehouse  within
the Club,  this Agreement  shall in turn  automatically  be terminated and of no
further force or effect with respect to such Club and the applicable  Licensee's
Business,  subject to the  Licensee  paying to the  Licensor the Licence Fee and
Taxes and other  monies that are owed to the  Licensor  hereunder  in respect of

<PAGE>

                                      -10-

such Licensee's  Business to such date of termination,  and  notwithstanding any
other provision of this Agreement,  the Licensor shall bear no responsibility or
liability to the Licensee  with respect to any damage or loss which the Licensee
may occasion by virtue of such  termination  of this  Agreement  with respect to
such Club and Licensee's Business.

12.05 Notwithstanding anything herein to the contrary, it is specifically agreed
between the parties that if at any time the Licensee's quality of merchandise or
services, method of operation,  merchandise variety, variety of services, and/or
financial  stability or solvency is not  acceptable to the Licensor with respect
to any of the Licensee's  Businesses,  acting reasonably,  then the Licensor may
give the Licensee written notice to that effect, which notice shall describe the
nature of such  deficiencies.  The Licensee  shall have seven (7) days following
the receipt by it of such notice within which to correct such  deficiencies.  If
such  deficiencies  are not  satisfactorily  corrected within such seven (7) day
period in the sole  absolute and  unfettered  discretion  of the  Licensor,  the
Licensor  shall  be  entitled,   at  any  time   thereafter  and  prior  to  the
rectification  by the  Licensee  of  any  such  deficiency,  to  terminate  this
Agreement or the license  created  pursuant to this  Agreement in respect of the
applicable Licensee's Business(es) and the application of this Agreement to such
Licensee's  Business(es).  Such termination shall be effected by the delivery of
written  notice of  termination  to the Licensee,  and upon the delivery of such
written  notice to the Licensee  such  license(s)  and the  application  of this
Agreement to such Licensee's  Business(es) shall, subject to any other provision
contained  herein  which  is  expressed  to  survive  such  termination  of this
Agreement, be at an end.

12.06 Upon any  termination of this Agreement in its entirety or with respect to
one of the  Licensee's  Businesses,  the  Licensee  shall,  at its sole cost and
expense, forthwith following the date that such termination shall be effective:

      (a)   immediately return all club badges and security identification which
            may be in the possession of the Licensee;

      (b)   immediately  discontinue its use of the applicable  Licensed Premise
            and remove any and all of its merchandise, chattels, trade fixtures,
            and other property, from such Licensed Premise;

      (c)   remove  any  and all  Signs  in or  about  the  applicable  Licensed
            Premise; and

      (d)   repair  any and all  damage or  alterations  caused to the  physical
            installations  in the  Club in a  workmanlike  manner  so  that  the
            Licensed Premise is left in a neat tidy and orderly condition.

The  Licensor  retains  the right to perform  any work  necessary  to remove the
merchandise, chattels, trade fixtures, and/or any other property of the Licensee
within the Licensed Premise,  and bill the Licensee for any and all expenses the
Licensor may incur in such process and the Licensee  shall  forthwith  pay same.
Notwithstanding  anything herein contained, in the event that the Licensee fails
to comply with section  12.06(b) within  twenty-one (21) days following the date
of the  termination  of this  Agreement  in its  entirety  or with  respect to a
Licensee's  Business  (as the case may be),  the  Licensor  shall be entitled to
retain for its own use, sell, or otherwise deal with such merchandise, chattels,
trade  fixtures,  and/or any other  property of the  Licensee  located  therein,
without notice and without any liability with respect thereto to the Licensee or
any other person.  The Licensor shall be entitled to set off any monies owing to
it  pursuant  to this  provision  which  are not paid in  accordance  with  this
provision  against any monies it may then or in the future owe to the  Licensee.
The  provisions  of this section  12.06 shall  survive the  termination  of this
Agreement.

12.07 For greater certainty,  the parties  acknowledge and agree that the rights
and remedies  available to Licensor under this Article 12 are cumulative and are
in  addition  to and  not in  substitution  for any  other  rights  or  remedies
available under this Agreement, at law or in equity.

3.00 Indemnity

13.01  The  Licensee  hereby  agrees to  indemnify  and save the  Licensor,  its
directors,  officers,  employees,  and agents, harmless from and against any and
all claims, damages, losses, liabilities,  demands, suits, judgements, causes of
action,  legal  proceedings,  penalties or other sanctions and any and all costs
and  expenses  arising  in  connection   therewith   including  legal  fees  and
disbursements  on a  solicitor  and his own  client  basis  (including,  without
limitation, all such legal fees and disbursements in connection with any and all

<PAGE>

                                      -11-

appeals) which may,  either  directly or  indirectly,  in any way result from or
arise out of or be in relation to the  Licensee's  use and/or  occupation of the
Licensed Premises,  the Licensee's  business  operations,  and/or this Agreement
(save and except as a result of the negligence  and/or  recklessness of Licensor
and/or  its  employees),  including,  without  limiting  the  generality  of the
foregoing, arising by reason of or in connection with:

      (a)   any breach,  violation,  non-observance  or  non-performance  by the
            Licensee or by any of its servants,  employees,  agents, invitees or
            any other persons for whom it is responsible, of any of the terms or
            conditions contained in this Agreement;

      (b)   any  damage  to  property  whether  or not  owned  by  the  Licensor
            howsoever occasioned;

      (c)   any damage, theft, or other loss in any way related to or in respect
            of any property,  chattels,  fixtures,  merchandise and/or monies of
            the  Licensee  located  from  time to time  in or  about a  Licensed
            Premise;

      (d)   any  illness,  disease  or injury to any  person or  persons  caused
            either  directly or indirectly by the carrying on of the  Licensee's
            Business(es), including death resulting at any time therefrom;

      (e)   any negligent  act(s) or omission(s) of the Licensee,  or anyone for
            whose acts it may be responsible at law and/or in equity;

      (f)   any claims  pertaining to the  employment  of any of the  Licensee's
            employees,   including   without  limiting  the  generality  of  the
            foregoing, salaries and other compensation,  statutory withholdings,
            and workers compensation;

      (g)   the occurrence of any Material Default;

      (h)   the occurrence of any interruption of the business operations of the
            Licensor in any Club; and/or

      (i)   any legal  expenses  incurred by the  Licensor  with  respect to the
            exercise of any of its rights under this  Agreement  with respect to
            or following a default hereunder by the Licensee, on a solicitor and
            client basis.

The provisions of this section shall survive and remain in full force and effect
following any  termination  of this  Agreement  and/or the  application  of this
Agreement to any Licensee's Business.

14.00 Taxes

14.01  Save and  except  as  herein  provided,  the  Licensee  shall  be  solely
responsible  for  bearing  the cost of and paying any and all  licence  fees and
taxes,  whether presently existing or created during the Term, including without
in any way limiting the generality of the foregoing,  realty,  sales,  goods and
services,   value  added,  business  and  corporate  taxes,  applicable  to  the
Licensee's   Businesses  and/or  the  Licensed  Premises.   Notwithstanding  the
foregoing,  with respect to realty taxes, the parties acknowledge and agree that
the  Licensor  shall bear the cost of and pay same with  respect to the Licensed
Premises,  but only to the amounts  applicable  to each  Licensed  Premise as at
their respective  Commencement  Dates. If anything  pertaining to this Agreement
and/or the use of a Licensed  Premise by the Licensee  causes the assessed value
and/or realty taxes or other taxes payable,  whether directly or indirectly,  by
the Licensor to increase, the Licensee shall forthwith reimburse the full amount
of any increase in such realty or other taxes to the Licensor  following receipt
by the Licensee of a written  demand  therefor from the  Licensor.  The Licensor
shall be entitled to set off any monies  owing to it pursuant to this  provision
which are not paid in accordance  with this provision  against any monies it may
then or in the future owe to the Licensee.  In the event that any such taxes are
billed to the Licensor,  then the Licensee  covenants and agrees to pay the same
to the Licensor  forthwith  following  receipt of a written demand therefor from
the Licensor.

<PAGE>

                                      -12-

15.00 Utilities

15.01  The   Licensor   shall   provide   lighting,   electrical,   heating  and
air-conditioning  (collectively the "Utilities"), as is necessary to operate the
Licensee's  Businesses,  however  Licensee shall be responsible for constructing
and arranging for any  telephone/data  line(s) required on the Licensed Premises
and  shall  be  solely  responsible  for all  costs  related  thereto.  Any such
construction  must be  completed  outside  of  store  hours  and at  times to be
approved by Licensor.  Further, any cabling in connection therewith shall (i) be
white or grey;  (ii) follow 90 degree  angles;  (iii) be in a conduit or panduit
coming from the ceiling space to the top of the kiosk on the Licensed  Premises;
and (iv) be detailed to corporate  standards.  The Licensee covenants and agrees
to  reimburse   the  Licensor  for  the  cost  of  any  physical   construction,
installations,  and/or  alterations to a Club and/or its service systems made by
the  Licensor in order to make the  Utilities  and  rough-ins  available at each
Licensed  Premise.  Notwithstanding  the  foregoing,  the Licensor  shall not be
responsible for any temporary interruption in such services or for any damage to
the  Licensee's  property  caused by any temporary  interruption  in any of such
services, power surge, electrical failure, or other mechanical problem.

16.00 Maintenance

16.01 During such times as the Licensee  carries on a  Licensee's  Business,  it
shall keep, operate and maintain the applicable  Licensed Premise in a clean and
sanitary  condition and shall leave same in a reasonably neat and tidy condition
after using same, including without limitation, following the termination of any
licence with respect to such Licensee's Business.

      Signs and Advertising

17.01 The Licensee shall not paint, display,  install,  erect or affix any sign,
fixture,  advertisement,  notice,  lettering or decoration (a "Sign") within the
Licensed Premises without the prior written consent of the Licensor which may be
withheld  for any or no reason  whatsoever.  In  addition to the  foregoing  and
without in any way limiting  same,  any Sign  displayed,  installed,  erected or
affixed  by  the  Licensee   within  or  about  a  Licensed   Premise  shall  be
professionally  prepared,  type set and manufactured,  and shall not include any
hand written text, script, logos, and/or designs. Any Sign displayed, installed,
erected or affixed by the Licensee in  contravention  of this  provision  may be
removed  by the  Licensor  at any  time at the  sole  cost  and  expense  of the
Licensee,  and the Licensee shall forthwith  reimburse the Licensor for the cost
of same following receipt of a written demand therefor from the Licensor.

17.02 The  Licensee  shall,  subject to the  Licensor's  approval as required by
section 17.01,  at its sole cost and expense provide and install such reasonable
number of signs as the Licensor  shall  determine,  acting  reasonably,  in each
Licensed  Premise in a  conspicuous  location in full view of all members at all
times the Club is open for  business  identifying  the nature of the  Licensee's
Business.  Letters  and numbers are to be a minimum of four inches (4") in scale
with a  background  color which  highlights  the color of the  characters.  Such
signage  is to be  located  in  the  Licensed  Premises  and to  compliment  the
surrounding decor. No Signs in respect of the Licensee's Business shall refer to
the Licensee, either directly or indirectly.

17.03 The Licensee  shall not release or publish in any way any  advertising  or
written  material  relating  to the  Licensee's  Businesses,  without  the prior
written  approval of the  Licensor,  which may be withheld for any or no reason.
All  dealings  by  the  Licensee  with  its   creditors,   suppliers,   workmen,
contractors, agents, employees, and other similar persons in connection with the
Licensee's Businesses shall be conducted exclusively in the Licensee's name, and
the Licensee shall not in any manner  obligate the Licensor on account  thereof,
and/or  suggest to such  persons  that the Licensor  bears any  obligation  with
respect to same.

      Notices

18.01 Any notice or other  communication  required or  permitted  to be given by
this Agreement shall be in writing and shall be effectively given if:

      (a)   delivered personally

      (b)   sent by prepaid courier service;

<PAGE>

                                      -13-

      (c)   sent by registered mail; or

      (d)   sent  by  prepaid  telecopier,  telex  or  other  similar  means  of
            electronic  communication  and  confirmed  by mailing  the  original
            document so sent by prepaid mail on the same or following day,

in the case of notice to:

      (a)   in the case of notice to the Licensor at:

            1940 Argentia Road
            Mississauga,  Ontario
            L5N 1P9

            Attention: Director of Licensee Operations and Robert Rozzi

            Telecopier No. (905) 821-6371

            with a copy to:

            Attention: Mike Carney

            Telecopier No. (905) 816-4387

      (b)   in case of notice to the Licensee at:

            3577996 Canada Inc
            465 St. Jean
            Suite 601
            Montreal, Quebec
            H2Y 2R6

            Attention: Marius Silvasan, President

            Telecopier No. (514) 344-8675

or at such other address as the party to whom such notice or other communication
is to be given shall have advised the party  giving same in the manner  provided
in this section.  Any notice or other communication  delivered  personally or by
prepaid  courier  service shall be deemed to have been given and received on the
day it is so  delivered  at such  address,  provided  that if such  day is not a
Business  Day such  notice or other  communication  shall be deemed to have been
given and  received  on the next  following  Business  Day.  Any notice or other
communication  sent by  registered  mail  shall be deemed to have been given and
received on the third Business Day following the date of mailing.  Any notice or
other  communication  transmitted by telecopier,  telex or other similar form of
electronic  communication  shall be deemed  given and received on the day of its
transmission  provided that such day is a Business Day and such  transmission is
completed  before  5:00 p.m.  on such day,  failing  which such  notice or other
communication shall be deemed given and received on the first Business Day after
its  transmission.  Regardless of the foregoing,  if there is a mail stoppage or
labour  dispute or threatened  labour dispute which has affected or could affect
normal mail delivery by the applicable  postal service,  then no notice or other
communication  may be delivered  by  registered  mail.  If there has been a mail
stoppage  and if a party sends a notice or other  communication  by  telecopier,
telex or other similar means of  electronic  communication,  such party shall be
relieved from the  obligation to mail the original  document in accordance  with
this section.

<PAGE>

                                      -14-

      No Liability

19.01 The Licensor  shall not be liable or  responsible in any way for any death
or injury arising from or out of any occurrence in, upon, at, or relating to the
Licensee's Businesses and/or the Licensed Premises, or for any loss of or damage
or  injury  to any  property,  including  without  limitation  the  merchandise,
chattels, trade fixtures, and/or any other property located therein from time to
time,  belonging to the  Licensee or its  employees or to any other person while
such property is in the Licensed Premises, whether or not such property has been
entrusted to employees of the  Licensor,  or for any  consequential  or economic
damages,  loss or injury or for damages for personal discomfort or inconvenience
however caused (including, without limitation, by negligence, fundamental breach
of  contract  or the breach of a  fundamental  term of any  contract),  save and
except if any of same are the result of the negligence  and/or  recklessness  of
the Licensor or any of its employees. All merchandise, chattels, trade fixtures,
and/or any other  property of the Licensee  kept or stored on or in the Licensed
Premises  shall be so kept or  stored at the risk of the  Licensee  only and the
Licensee  shall hold the Licensor  harmless from and against any claims  arising
out of damage to same, including,  but not limited to, any subrogation claims by
the Licensee's insurers.

      No Waiver

20.01 No  condoning  or waiver by the  Licensor  of any default or breach by the
Licensee  at any time or  times in  respect  of any of the  obligations,  terms,
covenants and conditions contained in this Agreement to be performed or observed
by the  Licensee  shall be deemed or  construed  to  operate  as a waiver of the
Licensor's  rights  under  this  Agreement  in  respect  of  any  continuing  or
subsequent default or breach nor so as to defeat or affect in any way the rights
and  remedies  of the  Licensor  under  this  Agreement  in  respect of any such
continuing or subsequent default or breach.  Unless expressly waived in writing,
the  failure of the  Licensor  to insist in anyone or more cases upon the strict
performance of any of the obligations, terms, covenants and conditions contained
in this  Agreement  to be  performed  or observed by the  Licensee  shall not be
deemed or construed to operate as a waiver for the future strict  performance or
observance of such agreements, terms, covenants and conditions.

21.00 Relationship and Assignment

21.01 The rights granted to the Licensee  hereby are personal only and create no
interest or right in the Club and/or the  leasehold  interest of the Licensor in
the Club. This Agreement shall not create or confer upon the parties hereto,  in
any way or for any purpose, any relationship except that of contracting parties,
and in particular  does not create a partnership,  a joint venture or a landlord
and  tenant   relationship   between  the   Licensor  and  the  Licensee  or  an
employer-employee  relationship  between the Licensor  and the  employees of and
other persons rendering services to the Licensee.

21.02 The Licensee shall not assign,  transfer or set over this Agreement or any
part  thereof,  any rights  therein or thereto,  and/or in any way permit anyone
other than itself to carry on the Licensee's Business within a Licensed Premise,
without having obtained the prior written consent of the Licensor, which consent
may be withheld for any reason  whatsoever.  The  Licensor  shall be entitled to
assign this  Agreement in whole or in part to any  successor in occupancy of any
of the Clubs at any time without the consent of the  Licensee,  and the Licensee
covenants and agrees to execute any documentation  which the Licensor shall deem
necessary,  acting reasonably to evidence that the Licensee  thereafter  forever
releases  and  discharges  the  Licensor  from  its  obligations  hereunder  and
covenants and agrees to be bound by the provisions of this Agreement to any such
assignee of the  Licensor  as if such  assignee  had  originally  executed  this
Agreement.

      Entire  Agreement

22.01 This  Agreement  constitutes  the entire  agreement  between  the  parties
regarding the  Licensee's  use of the Licensed  Premises.  It is understood  and
agreed   that  there  are  no   agreements,   conditions,   warranties,   terms,
representations or arrangements,  oral or written, statutory or otherwise, other
than those contained herein, and that all prior  conversations,  understandings,
arrangements,  statements,  communications or agreements,  oral or written, with
respect to this Agreement are hereby superseded.

<PAGE>

                                      -15-

      Governing Law

23.01 This Agreement  shall be governed by and construed in accordance  with the
laws of the Province of Ontario and the laws of Canada applicable  therein.  The
parties  hereby  irrevocably  attorn to the  jurisdiction  of the  courts of the
Province of Ontario.

      Time of the Essence

      Time is of the essence of this Agreement and every part hereof.

      Interpretation

25.01  This  Agreement  shall be read  with all  changes  in gender  and  number
required by the  context.  The  headings  contained  in this  Agreement  are for
convenience of reference only, and shall not affect the  interpretation  of this
Agreement.

      Payments in Canadian Currency

26.01 All  references  herein  to  currency  are to  Canadian  currency  and all
payments shall be made in Canadian currency

      Severability

27.01 If for any reason  whatsoever  any term,  covenant  or  condition  of this
Agreement,  or the  application  thereof to any person,  firm or  corporation or
circumstance,  is to any  extent  held or  rendered  invalid,  unenforceable  or
illegal, then such term, covenant or condition:

      (a)   shall be deemed to be independent of the remainder of this Agreement
            and to be severable and  divisible  therefrom,  and its  invalidity,
            unenforceability   or  illegality   shall  not  affect,   impair  or
            invalidate the remainder of this Agreement or any part thereof; and

      (b)   continues to be applicable to and  enforceable to the fullest extent
            permitted  by law  against  any person and  circumstance  other than
            those  as  to  which  it  has  been   held  or   rendered   invalid,
            unenforceable or illegal.

28.00 Force Majeure

28.01  Notwithstanding  any other provisions of this Agreement,  whenever and to
the extent that either party is unable to fulfill or is delayed or restricted in
the fulfillment of any of its obligations  under this Agreement by reason of any
of the following impediments:

            strike;

            lockout;

            war or acts of military authority;

            rebellion or civil commotion;

            material or labour shortage not within the control of such Owners;

            fire, explosion;

            flood, wind, water, earthquake or other casualty;

<PAGE>

                                      -16-

      8.    any applicable  lawful  statute,  by-law,  ordinance,  regulation or
            order;

      9.    acts of God, or

      10.   any act of the landlord of the club to terminate or deny  possession
            of the Club to the Licensor, whether temporary or not,

not caused by the default,  act, or omission of such party and not  avoidable or
surmountable  by the exercise of reasonable  effort or foresight by it (save and
except with reference to item 10 above for which the Licensor shall have no such
obligations whatsoever),  then so long as any such impediment exists, such party
shall be temporarily  relieved from the  fulfillment of such  obligation and the
other party shall not be entitled to compensation for any damage, inconvenience,
nuisance  or  discomfort  thereby  occasioned  and,  to the extent  necessitated
thereby,  there shall be a postponement  of any deadline,  compliance with which
would be otherwise  adversely affected by such impediment,  provided that at the
expiration of such temporary  relief,  such party shall  forthwith  proceed with
fulfillment of such obligation.

      Encumbrance

29.01 The  Licensee  shall not charge,  mortgage,  hypothecate,  pledge,  give a
security  interest in, or otherwise  encumber this  Agreement or the fixtures of
the Licensee located from time to time within the Licensed  Premises without the
prior written consent of the Licensor,  which consent may be withheld for any or
no reason whatsoever.

      Schedules

30.01 The following  Schedules  whether  attached  hereto or  acknowledged  as a
separate document shall form a part of this Agreement:

      Schedules "A-1" to "A-4" - Licence Schedules;

      Schedule "B" - New Club Licence Schedule;

      Schedules "C" - Form of Sales Report.

      Successors and Assigns

31.01 Subject to any restrictions  herein contained,  this Agreement shall enure
to the  benefit  of  and be  binding  upon  the  parties  and  their  respective
successors and permitted assigns.

<PAGE>

                                      -17 -

32.00 Language

32.01 The  parties  acknowledge  and agree  that  they have  required  that this
Agreement be prepared in the English language.  Les parties  reconnaissent avoir
exige que les presentes soient redigees en langue anglaise.

      IN WITNESS  WHEREOF the parties have executed this Agreement this 28th day
of October, 2003, with effect as of the date hereinabove set forth.

                                  WAL-MART CANADA CORP., carrying on business as
                                  "SAM'S CLUB"

                                  Per: /s/ Randy Edwards c/s
                                       -----------------------------------------
                                       Name: Randy Edwards
/s/ [ILLEGIBLE]                        Title: Senior Vice-President

                                  3577996 CANADA INC.

                                  Per: /s/ Marius Silvasan c/s
                                       -----------------------------------------
                                       Name: Marius Silvasan
                                       Title:

                                  I have the authority to bind the Corporation.

<PAGE>

                                 SCHEDULE "A-1"

                                LICENCE SCHEDULE

The Licensor does hereby grant a  non-exclusive  licence to the Licensee and the
Licensee  does  hereby  accept  such  licence  in  accordance  with the  Licence
Agreement  between the parties made the 28th day of October,  2003 to carry on a
Licensee's Business in or about SAM'S CLUB Warehouse #4837 located at 1899 Brock
Road,  Pickering,  Ontario,  L1V 4H7 (the "Club").  For greater  certainty,  the
Licensor  shall not have the right to permit the operation by a third party of a
cellular telephone service sale kiosk within the Club.

The Commencement Date in respect of the Licensee's  Business located in or about
this Club shall be the date that the  Licensor  advises  Licensee  that the Club
will  open to its  members,  which  notice  shall be given no less than five (5)
Business Days in advance.  As at the date of execution of this Licence  Schedule
the Commencement Date in respect of the Licensee's  Business located in or about
this  Club  is  expected  to  be  October  30,  2003  (the  "Currently  Expected
Commencement  Date"). In the event that the aforesaid notice is not delivered to
the Licensee by the Licensor, the Commencement Date in respect of the Licensee's
Business  located  in or  about  this  Club  shall  be  the  Currently  Expected
Commencement Date.

The licence  created  pursuant to this Licence  Schedule  shall  commence on the
Commencement  Date and,  subject to earlier  termination  as provided for in the
Agreement,  continue in effect for a term  ending at 12:00  midnight on the 29th
day of October, 2005 (the "Term").

      IN WITNESS  WHEREOF the parties have executed  this Licence  Schedule this
28th day of October, 2003

                                  WAL-MART CANADA CORP., carrying on business as
                                  "SAM'S CLUB"

                                  Per: /s/ Randy Edwards c/s
                                       -----------------------------------------
                                       Name: Randy Edwards
/s/ [ILLEGIBLE]                        Title: Senior Vice-President

                                  3577996 CANADA INC.

                                  Per: /s/ Marius Silvasan c/s
                                       -----------------------------------------
                                       Name: Marius Silvasan
                                       Title:

                                  I have the authority to bind the Corporation.

<PAGE>

                                 SCHEDULE" A-2"

                                LICENCE SCHEDULE

The Licensor does hereby grant a  non-exclusive  licence to the Licensee and the
Licensee  does  hereby  accept  such  licence  in  accordance  with the  Licence
Agreement  between the parties made the 28th day of October,  2003 to carry on a
Licensee's  Business  in or about  SAM'S  CLUB  Warehouse  #4844  located at 100
Edgeley Boulevard, Vaughan, Ontario L4K 3Y8 (the "Club"). For greater certainty,
the Licensor  shall not have the right to permit the  operation by a third party
of a cellular telephone service sale kiosk within the Club.

The Commencement Date in respect of the Licensee's  Business located in or about
this Club shall be the date that the  Licensor  advises  Licensee  that the Club
will  open to its  members,  which  notice  shall be given no less than five (5)
Business Days in advance.  As at the date of execution of this Licence  Schedule
the Commencement Date in respect of the Licensee's  Business located in or about
this  Club  is  expected  to  be  October  30,  2003  (the  "Currently  Expected
Commencement  Date"). In the event that the aforesaid notice is not delivered to
the Licensee by the Licensor, the Commencement Date in respect of the Licensee's
Business  located  in or  about  this  Club  shall  be  the  Currently  Expected
Commencement Date.

The licence  created  pursuant to this Licence  Schedule  shall  commence on the
Commencement  Date and,  subject to earlier  termination  as provided for in the
Agreement,  continue in effect for a term  ending at 12:00  midnight on the 29th
day of October, 2005 (the "Term").

      IN WITNESS  WHEREOF the parties have executed  this Licence  Schedule this
28th day of October, 2003.

                                  WAL-MART CANADA CORP., carrying on business as
                                  "SAM'S CLUB"

                                  Per: /s/ Randy Edwards c/s
                                       -----------------------------------------
                                       Name: Randy Edwards
/s/ [ILLEGIBLE]                        Title: Senior Vice-President

                                  3577996 CANADA INC.

                                  Per: /s/ Marius Silvasan c/s
                                       -----------------------------------------
                                       Name: Marius Silvasan
                                       Title:

                                  I have the authority to bind the Corporation.

<PAGE>

                                 SCHEDULE" A-3"

                                LICENCE SCHEDULE

The Licensor does hereby grant a  non-exclusive  licence to the Licensee and the
Licensee  does  hereby  accept  such  licence  in  accordance  with the  Licence
Agreement  between the parties made the 28th day of October,  2003 to carry on a
Licensee's Business in or about SAM'S CLUB Warehouse #4848 located at 255 Silver
Linden  Drive,  Richmond  Hill,  Ontario,  L4B 4V5  (the  "Club").  For  greater
certainty,  the Licensor  shall not have the right to permit the  operation by a
third party of a cellular telephone service sale kiosk within the Club.

The Commencement Date in respect of the Licensee's  Business located in or about
this Club shall be the date that the  Licensor  advises  Licensee  that the Club
will  open to its  members,  which  notice  shall be given no less than five (5)
Business Days in advance.  As at the date of execution of this Licence  Schedule
the Commencement Date in respect of the Licensee's  Business located in or about
this  Club  is  expected  to  be  October  30,  2003  (the  "Currently  Expected
Commencement  Date"). In the event that the aforesaid notice is not delivered to
the Licensee by the Licensor, the Commencement Date in respect of the Licensee's
Business  located  in or  about  this  Club  shall  be  the  Currently  Expected
Commencement Date.

The licence  created  pursuant to this Licence  Schedule  shall  commence on the
Commencement  Date and,  subject to earlier  tennination  as provided for in the
Agreement,  continue in effect for a term  ending at 12:00  midnight on the 29th
day of October, 2005 (the "Term").

      IN WITNESS  WHEREOF the parties have executed  this Licence  Schedule this
28th day of October, 2003.

                                  WAL-MART CANADA CORP., carrying on business as
                                  "SAM'S CLUB"

                                  Per: /s/ Randy Edwards c/s
                                       -----------------------------------------
                                       Name: Randy Edwards
/s/ [ILLEGIBLE]                        Title: Senior Vice-President

                                  3577996 CANADA INC.

                                  Per: /s/ Marius Silvasan c/s
                                       -----------------------------------------
                                       Name: Marius Silvasan
                                       Title:

                                  I have the authority to bind the Corporation.

<PAGE>

                                 SCHEDULE "A-4"

                                LICENCE SCHEDULE

The Licensor does hereby grant a  non-exclusive  licence to the Licensee and the
Licensee  does  hereby  accept  such  licence  in  accordance  with the  Licence
Agreement  between the parties made the 28th day of October,  2003 to carry on a
Licensee's  Business in or about SAM'S CLUB Warehouse  #4849 located at 1604 The
Queensway,  Etobicoke, Ontario, M8Z 1V1 (the "Club"). For greater certainty, the
Licensor  shall not have the right to permit the operation by a third party of a
cellular telephone service sale kiosk within the Club.

The Commencement Date in respect of the Licensee's  Business located in or about
this Club shall be the date that the  Licensor  advises  Licensee  that the Club
will  open to its  members,  which  notice  shall be given no less than five (5)
Business Days in advance.  As at the date of execution of this Licence  Schedule
the Commencement Date in respect of the Licensee's  Business located in or about
this  Club  is  expected  to  be  October  30,  2003  (the  "Currently  Expected
Commencement  Date"). In the event that the aforesaid notice is not delivered to
the Licensee by the Licensor, the Commencement Date in respect of the Licensee's
Business  located  in or  about  this  Club  shall  be  the  Currently  Expected
Commencement Date.

The licence  created  pursuant to this Licence  Schedule  shall  commence on the
Commencement  Date and,  subject to earlier  termination  as provided for in the
Agreement,  continue in effect for a term  ending at 12:00  midnight on the 29th
day of October, 2005 (the "Term").

      IN WITNESS  WHEREOF the parties have executed  this Licence  Schedule this
28th day of October, 2003.

                                  WAL-MART CANADA CORP., carrying on business as
                                  "SAM'S CLUB"

                                  Per: /s/ Randy Edwards c/s
                                       -----------------------------------------
                                       Name: Randy Edwards
/s/ [ILLEGIBLE]                        Title: Senior Vice-President

                                  3577996 CANADA INC.

                                  Per: /s/ Marius Silvasan c/s
                                       -----------------------------------------
                                       Name: Marius Silvasan
                                       Title:

                                  I have the authority to bind the Corporation.

<PAGE>

                                  SCHEDULE "B"

                           NEW CLUB LICENCE SCHEDULE

WHEREAS  Wal-Mart  Canada  Corp.  carrying  on  business  as "SAM'S  CLUB"  (the
"Licensor")  and 3577996  Canada Inc.  (the  "Licensee")  entered into a Licence
Agreement dated the 28th day of October, 2003 (the "Licence Agreement");

AND WHEREAS the Licensor and the Licensee desire that a further  membership club
warehouse of the Licensor be made subject to the Licence Agreement;

NOW THEREFORE  THIS  AGREEMENT  WITNESSES  that in  consideration  of the mutual
covenants,  conditions and agreements herein contained,  other good and valuable
consideration  and the sum of Five  Dollars  ($5.00)  paid by each  party to the
other  (the  receipt  and  sufficiency  of which are hereby  acknowledged),  the
parties hereto do hereby covenant and agree, each with the other, as follows:

All of the capitalized  terms used in this New Club Licence  Schedule shall have
the meanings ascribed to them in the Licence Agreement unless otherwise defined.

The Licensor does hereby grant a  non-exclusive  licence to the Licensee and the
Licensee  does  hereby  accept  such  licence  in  accordance  with the  Licence
Agreement between the parties made the * day of *, 200* to carry on a Licensee's
Business in or about SAM'S CLUB  Warehouse  # * located at * (the  "Club").  For
greater certainty, the Licensor shall not have the right to permit the operation
by a third party of a cellular telephone service sale kiosk within the Club.

The Commencement Date in respect of the Licensee's  Business located in or about
this Club shall be the date that the  Licensor  advises  Licensee  that the Club
will  open to its  members,  which  notice  shall be given no less than five (5)
Business Days in advance.  As at the date of execution of this Licence  Schedule
the Commencement Date in respect of the Licensee's  Business located in or about
this  Club is  expected  to be *,  200* (the  "Currently  Expected  Commencement
Date").  In the event that the aforesaid notice is not delivered to the Licensee
by the Licensor,  the  Commencement  Date in respect of the Licensee's  Business
located in or about this Club shall be the Currently Expected Commencement Date.

The licence created pursuant to this New Club Licence Schedule shall commence on
the Commencement Date and, subject to earlier termination as provided for in the
Licence Agreement, continue in effect for a term ending at 12:00 midnight on the
* day of *, 200* (the "Term").

<PAGE>

Upon the execution of this New Club Licence  Schedule,  the Licensee's  Business
located in or about this Club shall  become  subject to the terms of the Licence
Agreement.

      IN WITNESS WHEREOF the parties have executed this Licence  Schedule this *
day of *, 200*.

                                  WAL-MART CANADA CORP., carrying on business as
                                  "SAM'S CLUB"

                                  Per: /s/ Randy Edwards c/s
                                       -----------------------------------------
                                       Name: Randy Edwards
                                       Title: Senior Vice-President

                                  3577996 CANADA INC.

                                  Per: /s/ Marius Silvasan c/s
                                       -----------------------------------------
                                       Name: Marius Silvasan
                                       Title:

                                  I have the authority to bind the Corporation.

<PAGE>

                                  SCHEDULE "C"

                              FORM OF SALES REPORT

Club Warhouse #: o (all carriers)   Club Warehouse #: o (applicable carrier:   )

---------------------------------   ---------------------------------
                Gross Sales in                      Gross Sales in
                respect of                          respect of
                [Month/Year]                        [Month/Year]
---------------------------------   ---------------------------------
Services                            Services
---------------------------------   ---------------------------------
Approved                            Approved
Merchandise                         Merchandise
---------------------------------   ---------------------------------

Club Warhouse #: o (all carriers)   Club Warehouse #: o (applicable carrier:   )

---------------------------------   ---------------------------------
                Gross Sales in                      Gross Sales in
                respect of                          respect of
                [Month/Year]                        [Month/Year]
---------------------------------   ---------------------------------
Services                            Services
---------------------------------   ---------------------------------
Approved                            Approved
Merchandise                         Merchandise
---------------------------------   ---------------------------------

Club Warhouse #: o (all carriers)   Club Warehouse #: o (applicable carrier:   )

---------------------------------   ---------------------------------
                Gross Sales in                      Gross Sales in
                respect of                          respect of
                [Month/Year]                        [Month/Year]
---------------------------------   ---------------------------------
Services                            Services
---------------------------------   ---------------------------------
Approved                            Approved
Merchandise                         Merchandise
---------------------------------   ---------------------------------

Club Warhouse #: o (all carriers)   Club Warehouse #: o (applicable carrier:   )

---------------------------------   ---------------------------------
                Gross Sales in                      Gross Sales in
                respect of                          respect of
                [Month/Year]                        [Month/Year]
---------------------------------   ---------------------------------
Services                            Services
---------------------------------   ---------------------------------
Approved                            Approved
Merchandise                         Merchandise
---------------------------------   ---------------------------------

All Licensee's Business

---------------------------------
                Gross Sales in
                respect of
                [Month/Year]
---------------------------------
Services
---------------------------------
Approved
Merchandise
---------------------------------EXHIBIT  10.6

                              NELANA HOLDINGS LTD.

                             SUBSCRIPTION AGREEMENT

To:      Norman Saunders
         Nelana Holdings Ltd.
         Post Office Box 257
         Town Centre
         Town Centre Building
         Providenciales
         Turks and Caicos

         Attention:  Mr. Saunders

      1. Subscription. Nelana Holdings Ltd., an entity duly formed and organized
under the laws of the Turks and Caicos Islands (the "Purchaser"),  hereby offers
to  purchase   10,000,000   shares  of  Series  A  Convertible   Preferred  (the
"Securities"), when, as and if issued and which may or may not be evidenced by a
certificate,  at a purchase price of One Hundred Thousand Dollars ($100,000.00),
payable pursuant to that certain  promissory note (the "Note"),  a copy of which
is attached  hereto as Exhibit A, of Nannaco,  Inc.,  a Texas  corporation  (the
"Company"),  in the  amount  set forth  below,  pursuant  to a private  offering
("Offering") of securities through the Company.

      By  execution  of  this  Subscription  Agreement,   the  Purchaser  hereby
acknowledges  that it understands  that the Company is relying upon the accuracy
and   completeness   of  all   information   it  has  entered   herein  and  all
representations  and  warranties  it has made  hereunder in  complying  with the
Company's obligations under applicable U.S. federal and state securities laws.

2. General  Representations.  The Purchaser represents,  acknowledges and agrees
that:

            (a) it is not a "U.S.  person" as that term is defined in Regulation
      S1,  promulgated  under the U.S.  Securities  Act of 1933, as amended (the
      "U.S. Securities Act"); and

-------------------------
      1 "U.S.  person" is defined under  Regulation S as:

(i)   Any natural person resident in the United States;

(ii)  Any partnership or corporation organized or incorporated under the laws of
      the United States;

(iii) Any estate of which any executor or administrator is a U.S. person;

(iv)  Any trust of which any trustee is a U.S. person;

(v)   Any agency or branch of a foreign entity located in the United States;

(vi)  Any non-discretionary  account or similar account (other than an estate or
      trust) held by a dealer or other fiduciary for the benefit or account of a
      U.S. person;

(vii) Any  discretionary  account or similar  account  (other  than an estate or
      trust) held by a dealer or other fiduciary organized, incorporated, or (if
      an individual) resident in the United States; and

<PAGE>

            (b) it will not be purchasing  Securities for the account or benefit
      of any U.S. Person; the offer was not made to the Purchaser when it was in
      the United States;  at the time the Purchaser's buy order was delivered to
      the Company,  the Purchaser was outside the United States;  the Subscriber
      received and accepted this subscription and entered into this Agreement in
      its  jurisdiction of residence;  and such  jurisdiction of residence is as
      set out on page 1 of this Agreement.

            (c) that the Securities acquired pursuant to this Agreement have not
      been  registered  under the U.S.  Securities  Act,  and are being  sold in
      reliance upon an exemption from registration afforded by Regulation S; and
      that the Securities  have not been  registered  with any state  securities
      commission or authority.  The Purchaser further  understands that pursuant
      to the  requirements  of Regulation S, the Securities  acquired herein may
      not be transferred,  sold or otherwise exchanged unless in compliance with
      the provisions of Regulation S and/or pursuant to  registration  under the
      U.S.  Securities Act, or pursuant to an available exemption under the U.S.
      Securities Act.

            (d) the Securities are being  purchased by the Purchaser for its own
      account,  for  investment  only  and  not  with a view  toward  resale  or
      distribution  thereof to any other  person,  and it is not  participating,
      directly or indirectly, in any underwriting or distribution;

            (e) none of the Securities  purchased by the Purchaser shall be sold
      or otherwise  transferred  contrary to the provisions of this Subscription
      Agreement  or any  federal  or state  securities  law,  and the  Purchaser
      understands that unless the Securities are  subsequently  registered under
      the U.S.  Securities Act, they may not in any event be sold or transferred
      except by a valid exemption from  registration  under the U.S.  Securities
      Act;

            (f) any and all certificates  representing the Securities  purchased
      and any and all securities  issued in  replacement  thereof or in exchange
      thereof  shall  bear the  following  legend or one  substantially  similar
      thereto, which the Purchaser has read and understands:

      "THE SECURITIES  EVIDENCED  HEREBY HAVE NOT BEEN REGISTERED UNDER THE U.S.
      SECURITIES ACT OF 1933 (THE "ACT") OR APPLICABLE  STATE  SECURITIES  LAWS,
      AND THE  TRANSFER  THEREOF IS  PROHIBITED  EXCEPT IN  ACCORDANCE  WITH THE
      PROVISIONS OF REGULATION S UNDER THE ACT,  PURSUANT TO REGISTRATION  UNDER
      THE ACT AND APPLICABLE  STATE SECURITIES LAWS, OR PURSUANT TO AN AVAILABLE
      EXEMPTION FROM SUCH  REGISTRATION.  HEDGING  TRANSACTIONS  INVOLVING THESE
      SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT".

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

(viii) Any partnership or corporation if:

      (A)   Organized   or   incorporated   under   the  laws  of  any   foreign
            jurisdiction; and

      (B)   formed by a U.S. person principally for the purpose of investing any
            securities not registered  under the Act,  unless it is organized or
            incorporated, and owned, by accredited investors (as defined in Rule
            501(a)  under  the  Act) who are not  natural  persons,  estates  or
            trusts.

                                        2

<PAGE>

            (g) the  Company  shall  have  the  right  to  issue  stop  transfer
      instructions on its official stock records, and the Purchaser acknowledges
      that the Company has informed the Purchaser of its intention to issue such
      instructions:

            (h) there is currently no trading market in these  Securities of the
      Company,   and  the  Company  presently  has  no  plans  to  register  the
      Securities,  so that  there may never be a public  trading  market for the
      Securities,   with  consequent  possible  indefinite  illiquidity  of  the
      Securities;

            (i)  hedging  transactions  involving  the  Securities  may  not  be
      conducted unless in compliance with the U.S. Securities Act.

            (j) at no time has it been  explicitly  or  implicitly  represented,
      guaranteed or warranted to the Purchaser by the Company,  its  management,
      the agents or employees of the Company or any other  person:  (i) that the
      Purchaser will be able to transfer the Securities on any particular  date;
      (ii) that if and when the Purchaser  may wish to transfer the  Securities,
      such securities will be validly  transferable under federal and applicable
      state   securities  laws;  (iii)  that  the  Purchaser  will  realize  any
      percentage or amount of profit, gain or other consideration as a result of
      any  investment it has made or will make in the Company;  or (iv) that the
      Purchaser  or other  shareholders  will  receive  any  dividends  or other
      distributions from the Company at any time;

            (k)  investment  in  the  Securities  is  a  long-term,  speculative
      investment  which involves a substantial  risk of loss to the Purchaser of
      its entire  investment;  that the Purchaser  takes full  cognizance of and
      responsibility  for the risks  related to the purchase of the  Securities;
      the  Purchaser has no need for  liquidity  with respect to its  investment
      either now or within the foreseeable  future; and the Purchaser can bear a
      complete loss of its investment without undue hardship to itself;

            (l) the Purchaser and its purchaser representative, if any, has been
      afforded  an  opportunity  to  examine  such  documents  and  obtain  such
      information,  including the Company's financial statements  concerning the
      Company  as  it  may  have  requested,  and  the  Purchaser  has  had  the
      opportunity  to request such other  information  and ask  questions of the
      officers and  directors of the Company (and all  information  so requested
      has been provided) for the purpose of verifying the information  furnished
      to it and for  answering  any  question  it may  have had  concerning  the
      business, prospects and affairs of the Company;

            (m) the Purchaser  understands and acknowledges that any projections
      or financial  forecasts of the Company may likely prove to be incorrect in
      view of the early stage of the Company's development; and no assurance has
      been given to it that actual results will correspond in any meaningful way
      with  the  results  contemplated  by the  various  projections,  financial
      forecasts or predictions; and

                                       3
<PAGE>

            (n)  the  Purchaser  has  been  advised  to  consult  with  its  own
      investment  adviser,  attorney,  and  accountant  regarding  the Company's
      prospects  and legal and tax  matters,  concerning  an  investment  in the
      Company, and has done so, to the extent it consider that to be necessary.

      3. Suitability Standards,  Representations,  and Warranties. The Purchaser
represents  and warrants that all of the  information  which it has furnished in
this  Subscription  Agreement  is correct  and  complete  as of the date of this
Subscription  Agreement,  and will be correct and complete on the closing of the
sale of the Shares  subscribed for, and the  representations  and warranties and
agreements  herein shall  survive the closing date and may be relied upon by the
Company in its  reliance  upon an  exemption  from  registration  under the U.S.
Securities Act and state securities laws.

      4.  Indemnification.  The  Purchaser  understands  the  meaning  and legal
consequences   of  the   representations   and  warranties   contained  in  this
Subscription  Agreement  and agrees to indemnify  and hold harmless the Company,
its  officers  and  directors,  and each agent and  employee  thereof,  from and
against any and all loss,  damage,  liability  or expense  including  judgments,
fines,  amounts  paid in  settlement,  attorney's  fees and  other  legal  costs
actually incurred as a result of any such person or entity being made a party or
threatened to be made a party to any  threatened,  pending or completed  action,
suit or proceeding, whether civil, criminal,  administrative,  or investigative,
by reason of or arising from any breach of  representation  or warranty of it or
any  misrepresentation or misstatement of fact or omission to state or represent
facts made by it to the Company,  including without limitation,  the information
which it has furnished in this Subscription Agreement.

      5. Miscellaneous

      (a) The disclosure provided in this Subscription Agreement with respect to
certain  aspects of resale  restrictions  which  applies to the  Securities  and
securities laws of the United States is only a summary and is not intended to be
exhaustive and does not refer to resale  restrictions  which may arise by reason
of securities laws other than those of the United States.  THE SUBSCRIBER SHOULD
CONSULT  HIS OWN  PROFESSIONAL  ADVISORS  REGARDING  THIS  AGREEMENT  AND RESALE
RESTRICTIONS APPLICABLE TO THE SHARES.

      (b) All notices or other  communications  given or made hereunder shall be
in writing and shall be delivered  or mailed by  registered  or certified  mail,
return receipt  requested,  postage  prepaid,  to the Company at the address set
forth above and to the  undersigned  at the  address set forth on the  signature
page hereof.

                                       4
<PAGE>

      (b) This Subscription Agreement constitutes the entire agreement among the
parties  hereto with respect to the subject  matter  hereof and  supersedes  any
prior or contemporaneous  representations,  warranties,  or agreements  (whether
oral or written), and may be amended or waived only by a writing executed by the
party to be bound.

Number of Shares of Common Stock Subscribed For:     10,000,000
                                                     ----------

Total Purchase Price of the Shares Subscribed For:     $100,000

Very truly yours,

Norman Saunders

By: /s/ Norman Saunders

        Name:  Norman Saunders
        For: Nelana Holdings Ltd.

Address Nelana Holdings Ltd.:

Address:          _________________________________________________

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

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

Phone:            _________________________________________________

Facsimile:        _________________________________________________

Accepted and agreed to as of the above date.

Nannaco, Inc.

/s/ Steve Careaga
Name: Steve Careaga

Title: Chief Executive Officer

                                       5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00071-of-00352.parquet"}]]