Document:

WEALTHHOUND.COM, INC.
                  2000 STOCK OPTION PLAN STOCK OPTION AGREEMENT

         1. GRANT OF OPTION.  WealthHound.com,  Inc., a Florida corporation (the
"COMPANY"),  hereby  grants to the  Optionee  named in the  Notice of Grant (the
"OPTIONEE"),  an option (the  "OPTION")  to purchase a total number of shares of
Common Stock (the  "SHARES")  set forth in the Notice of Grant,  at the exercise
price per share set forth in the Notice of Grant (the "EXERCISE  PRICE") subject
to the terms,  definitions and provisions of WealthHound.com,  Inc.'s 2000 Stock
Option Plan (the "PLAN") adopted by the Company, which is incorporated herein by
reference.  Unless otherwise defined herein, the terms defined in the Plan shall
have the same defined meanings in this Option.

If designated an Incentive  Stock Option,  this Option is intended to qualify as
an Incentive Stock Option as defined in Section 422 of the Code.

     2. EXERCISE OF OPTION.  This Option shall be exercisable during its term in
accordance  with the  Exercise  Schedule set out in the Notice of Grant and with
the provisions of Section 5 hereof and Section 9 of the Plan as follows:

                  (i)      RIGHT TO EXERCISE.
                           -----------------

                    (a) This  Option may not be  exercised  for a fraction  of a
share.

                    (b) In the event of  Optionee's  death,  disability or other
termination  of  employment,  the  exercisability  of the Option is  governed by
Sections 6, 7 and 8 below,  subject to the  limitation  contained in  subsection
2(i)(c).

                    (c) In no event may this Option be exercised  after the date
of expiration of the term of this Option as set forth in the Notice of Grant.

                  (ii) METHOD OF EXERCISE.  This Option shall be  exercisable by
written  notice (in the form  attached  as  Appendix  A) which  shall  state the
election  to exercise  the Option,  the number of Shares in respect of which the
Option is being exercised,  and such other  representations and agreements as to
the  holder's  investment  intent with respect to such shares of Common Stock as
may be required by the Company  pursuant  to the  provisions  of the Plan.  Such
written  notice shall be signed by the Optionee and shall be delivered in person
or by certified  mail to the Secretary of the Company.  The written notice shall
be  accompanied  by payment  of the  Exercise  Price,  as set forth in Section 4
below.  This Option shall be deemed to be exercised  upon receipt by the Company
of such written notice accompanied by the Exercise Price.

                  No Shares will be issued pursuant to the exercise of an Option
unless such issuance and such exercise shall comply with all relevant provisions
of law and the requirements of any stock exchange upon which the Shares may then
be listed. Assuming such

                                       1
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compliance,  for income tax purposes the Shares shall be considered transferred
to the  Optionee on the date on which the Option is  exercised  with  respect to
such Shares.

         3.  OPTIONEE'S  REPRESENTATIONS.  In the event the  Shares  purchasable
pursuant  to the  exercise of this  Option  have not been  registered  under the
Securities  Act of 1933,  as  amended,  at the time this  Option  is  exercised,
Optionee  shall, if required by the Company,  concurrently  with the exercise of
all or any portion of this Option,  deliver to the Company a separate investment
representation statement.

         4.       METHOD OF PAYMENT. Payment of the Exercise Price shall be by
any of the following, or a combination thereof, at the election of the Optionee:

                  (i)      cash;

                  (ii)     check;

                  (iii) surrender of other shares of Common Stock of the Company
which (A) in the case of Shares  acquired  pursuant to the exercise of a Company
option, have been owned by the Optionee for more than six (6) months on the date
of surrender, and (B) have a Fair Market Value on the date of surrender equal to
the Exercise Price of the Shares as to which the Option is being exercised;

                  (iv) delivery of a properly  executed exercise notice together
with  such  other   documentation  as  the  Administrator  and  the  broker,  if
applicable,  shall  require to effect an exercise of the Option and  delivery to
the Company of the sale or loan proceeds required to pay the Exercise Price; or

                  (v) such other forms of payment  permitted  under the Plan but
only if the Administrator consents thereto, which consent may be withheld by the
Administrator in its sole discretion.

         5.  RESTRICTIONS  ON EXERCISE.  This Option may not be exercised  until
such time as the Plan has been approved by the  shareholders of the Company,  or
if the  issuance of such  Shares upon such  exercise or the method of payment of
consideration  for such shares would  constitute  a violation of any  applicable
federal or state securities or other law or regulation, including any rule under
Part  207 of Title 12 of the Code of  Federal  Regulations  ("REGULATION  G") as
promulgated by the Federal Reserve Board. As a condition to the exercise of this
Option, the Company may require Optionee to make any representation and warranty
to the Company as may be required by any applicable law or regulation.

         6.  TERMINATION  OF  RELATIONSHIP.  In  the  event  of  termination  of
Optionee's consulting relationship or Continuous Status as an Employee, Optionee
may, to the extent  otherwise so entitled at the date of such  termination  (the
"TERMINATION DATE"),  exercise this Option during the Termination Period set out
in the  Notice  of  Grant;  PROVIDED,  HOWEVER,  that  if such  relationship  is
terminated  for "Cause" (as  defined in Section  2(d) of the Plan),  this Option

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shall  terminate  immediately.  To the extent that  Optionee was not entitled to
exercise this Option at the  Termination  Date, or if Optionee does not exercise
this Option within the time specified herein, the Option shall terminate.

         7. DISABILITY OF OPTIONEE.  Notwithstanding the provisions of Section 6
above,  in the event of termination  of Optionee's  consulting  relationship  or
Continuous  Status  as an  Employee  as a result  of his or her  disability  (as
defined in  Section  22(e)(3)  of the Code),  (i) if  Optionee  is an  Employee,
Optionee or his Legal  Representative  may,  but only within  twelve (12) months
from the date of termination of employment, or (ii) if Optionee is a Consultant,
Optionee  or his  Legal  Representative  may,  at any  time  after  the  date of
termination of the consulting relationship,  or within such other period of time
as determined by the Administrator  (but in each case in no event later than the
date of expiration of the term of this Option as set forth in Section 10 below),
exercise  the Option to the extent  otherwise  so  entitled  at the date of such
termination. To the extent that Optionee was not entitled to exercise the Option
at the date of termination, or if Optionee does not exercise such Option (to the
extent otherwise so entitled) within the time specified herein, the Option shall
terminate.

         8. DEATH OF OPTIONEE. In the event of the death of Optionee, the Option
may be exercised, (i) if Optionee is an Employee, at any time within twelve (12)
months following the date of death, or (ii) if Optionee is a Consultant,  at any
time  following  the date of  death,  or  within  such  other  period of time as
determined  by the  Administrator  (but  in no  event  later  than  the  date of
expiration  of the term of this  Option as set forth in Section  10  below),  by
Optionee's  Legal  Representative  but only to the  extent  the  Optionee  could
exercise the Option at the date of death.

         9. NON-TRANSFERABILITY OF OPTION. This Option may not be transferred in
any manner otherwise than by will or by the laws of descent or distribution, and
may be  exercised  during  the  lifetime  of  Optionee  only by him or his Legal
Representative.  In the  case of a  Nonstatutory  Stock  Option,  sale,  pledge,
hypothecation,  transfer or disposition may be by will,  descent or distribution
and as otherwise permitted by the Administrator.  The terms of this Option shall
be binding upon the executors, administrators,  heirs, successors and assigns of
the Optionee.

         10. TERM OF OPTION.  This Option may be exercised  only within the term
set out in the Notice of Grant,  and may be  exercised  during such term only in
accordance  with the Plan and the  terms of this  Option.  If this  Option is an
Incentive  Stock Option,  the limitations of Section 7 of the Plan regarding (i)
Options designated as Incentive Stock Options; and (ii) if applicable, Incentive
Stock Options granted to more than ten percent (10%)  shareholders,  shall apply
to this Option.

         11. TAXATION UPON EXERCISE OF OPTION.  Optionee  understands that, upon
exercising a Nonstatutory  Stock Option, he or she will recognize income for tax
purposes in an amount  equal to the excess of the then fair market  value of the
Shares over the exercise price. If the Optionee is an employee, the Company will
be required to withhold from Optionee's  compensation,  or collect from Optionee
and pay to the applicable taxing  authorities an amount

                                       3
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equal to a percentage of this compensation income.  Additionally,  the Optionee
may at some  point be  required  to satisfy  tax  withholding  obligations  with
respect to the  disqualifying  disposition  of an Incentive  Stock  Option.  The
Optionee shall satisfy his or her tax  withholding  obligation  arising upon the
exercise of this Option by one or some combination of the following methods: (i)
by cash  payment,  or (ii) out of Optionees  current  compensation,  or (iii) if
permitted  by the  Administrator,  in its  discretion,  by  surrendering  to the
Company  Shares  which (a) in the case of Shares  previously  acquired  from the
Company, have been owned by the Optionee for more than six months on the date of
surrender and (b) have a Fair Market Value on the date of surrender  equal to or
less than Optionees marginal tax rate times the ordinary income  recognized,  or
(iv) in the  discretion  of the  Administrator,  by electing to have the Company
withhold from the Shares to be issued upon exercise of the Option that number of
Shares  having a Fair Market Value equal to the amount  required to be withheld.
For this  purpose,  the Fair Market Value of the Shares to be withheld  shall be
determined on the date that the amount of tax to be withheld is to be determined
(the "TAX DATE").

         If the  Optionee  is  subject to  Section  16 of the  Exchange  Act (an
"INSIDER"),  any surrender of previously owned Shares to satisfy tax withholding
obligations arising upon exercise of this Option must comply with the applicable
provisions of Rule 16b-3  promulgated  under the Exchange Act ("RULE 16B-3") and
shall  be  subject  to such  additional  conditions  or  restrictions  as may be
required  thereunder to qualify for the maximum exemption from Section 16 of the
Exchange Act with respect to Plan transactions.

         All  elections  by an Optionee  to have Shares  withheld to satisfy tax
withholding  obligations  shall be made in writing in a form  acceptable  to the
Administrator and shall be subject to the following restrictions:

                  (i)  the election must be made on or prior to the applicable
 Tax Date;

                  (ii)  once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the
election is made;

                  (iii)  all elections shall be subject to the consent or
disapproval of the Administrator; and

                  (iv) if the Optionee is an Insider,  the election  must comply
with the  applicable  provisions  of Rule  16b-3  and shall be  subject  to such
additional  conditions or restrictions as may be required  thereunder to qualify
for the maximum  exemption  from  Section 16 of the Exchange Act with respect to
Plan transactions.

         12. NOTICE OF  DISQUALIFYING  DISPOSITION OF ISO SHARES.  If the Option
granted to Optionee herein is an Incentive  Stock Option,  and if Optionee sells
or otherwise  disposes of any of the Shares  acquired  pursuant to the Incentive
Stock  Option on or before the later  of(1) the date two years after the Date of
Grant,  or (2) the date one year after the date of exercise,  the Optionee shall
immediately  notify the Company in writing of such disposition.  Optionee agrees
that  Optionee  may be subject to income tax  withholding  by the Company on the

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<PAGE>

compensation  income  recognized by the Optionee from the early  disposition  by
payment in cash or out of the compensation paid to the Optionee.

         13. FORFEITURE FOR VIOLATION OF EMPLOYMENT AGREEMENT. In the event that
Optionee  violates  any  of  his  or  her   Confidentiality  or  Non-Competition
obligations  arising under  Optionee's  employment  agreement or other agreement
with the Company, then (i) all profits or gains realized by Optionee as a result
of the  exercise  of any portion of the Option or the sale of any of the Shares,
shall  be  forfeited  and  returned  to the  Company,  and  (ii) any of the then
unexercised portion of the Option shall be immediately terminated.

         14.      "VESTING".  [RESERVED]
                   -------
                                                     WEALTHHOUND.COM, INC.

                           By: _______________________

OPTIONEE  ACKNOWLEDGES  AND AGREES THAT THE  VESTING OF SHARES  PURSUANT TO THE
OPTION HEREOF IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL
OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR
ACQUIRING  SHARES  HEREUNDER).  OPTIONEE  FURTHER  ACKNOWLEDGES  AND AGREES THAT
NOTHING IN THIS  AGREEMENT,  NOR IN THE  COMPANY'S  STOCK  OPTION  PLAN WHICH IS
INCORPORATED  HEREIN BY  REFERENCE,  SHALL  CONFER UPON  OPTIONEE ANY RIGHT WITH
RESPECT TO CONTINUATION  OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY,  NOR SHALL
IT INTERFERE IN ANY WAY WITH HIS RIGHT OR THE  COMPANY'S  RIGHT TO TERMINATE HIS
EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE.

         Optionee  acknowledges  receipt  of a copy  of  the  Plan  and  certain
information  related  thereto and represents  that he is familiar with the terms
and  provisions  thereof and hereby  accepts  this Option  subject to all of the
terms and provisions  thereof  Optionee has reviewed the Plan and this Option in
their entirety,  has had an opportunity to obtain the advice of counsel prior to
executing  this  Option and fully  understands  all  provisions  of the  Option.
Optionee hereby agrees to accept as binding,  conclusive and final all decisions
or  interpretations  of the  Administrator  upon any questions arising under the
Plan.

Dated:___________          ______________________________
                                    Optionee

                                       5
<PAGE>

         APPENDIX A
         ----------
                             2000 STOCK OPTION PLAN

                                 EXERCISE NOTICE

WealthHound.com, Inc.

         1. EXERCISE OF OPTION.  Effective as of today,  ____________  20__, the
undersigned ("OPTIONEE") hereby elects to exercise Optionee's option to purchase
__________  shares of the Common Stock (the "SHARES") of  WealthHound.com,  Inc.
(the  "COMPANY")  under and pursuant to the Company's 2000 Stock Option Plan, as
amended  (the  "PLAN")  and the [ ]  Incentive  [ ]  Nonstatutory  Stock  Option
Agreement dated ________ (the "OPTION AGREEMENT").

         2. REPRESENTATIONS OF OPTIONEE. Optionee acknowledges that Optionee has
received,  read and understood  the Plan and the Option  Agreement and agrees to
abide by and be bound by their terms and  conditions.  Optionee  represents that
Optionee is purchasing  the Shares for Optionee's own account for investment and
not with a view to, or for sale in  connection  with, a  distribution  of any of
such Shares.

         3.   COMPLIANCE  WITH  SECURITIES   LAWS.   Optionee   understands  and
acknowledges  that the Shares have not been registered  under the Securities Act
of 1933, as amended (the "1933 ACT"), and,  notwithstanding  any other provision
of the Option Agreement to the contrary,  the exercise of any rights to purchase
any Shares is  expressly  conditioned  upon  compliance  with the 1933 Act,  all
applicable  state  securities laws and all applicable  requirements of any stock
exchange or over the counter  market on which the Company's  Common Stock may be
listed  or traded  at the time of  exercise  and  transfer.  Optionee  agrees to
cooperate with the Company to ensure compliance with such laws.

         4. FEDERAL  RESTRICTIONS  ON TRANSFER.  Optionee  understands  that the
Shares  have not been  registered  under  the 1933 Act and  therefore  cannot be
resold and must be held  indefinitely  unless they are registered under the 1933
Act or unless an exemption  from such  registration  is  available  and that the
certificate(s)  representing  the  Shares  may  bear a  legend  to that  effect.
Optionee  understands  that the Company is under no  obligation  to register the
Shares and that an exemption may not be available or may not permit  Optionee to
transfer   Shares  in  the  amounts  or  at  the  times  proposed  by  Optionee.
Specifically, Optionee has been advised that Rule 144 promulgated under the 1933
Act, which permits certain resales of unregistered securities,  is not presently
available  with respect to the Shares and, in any event requires that the Shares
be paid for and then be held for at least one year (and in some cases two years)
before they may be resold under Rule 144.

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<PAGE>

         5. RIGHTS AS SHAREHOLDER.  Until the stock certificate  evidencing such
Shares is issued  (as  evidenced  by the  appropriate  entry on the books of the
Company or of a duly authorized transfer agent of the Company), no right to vote
or receive  dividends  or any other  rights as a  shareholder  shall  exist with
respect to the Optioned Stock,  notwithstanding  the exercise of the Option. The
Company  shall  issue (or cause to be issued)  such stock  certificate  promptly
after the Option is  exercised.  No  adjustment  will be made for a dividend  or
other right for which the record date is prior to the date the stock certificate
is issued, except, as provided in Section 12 of the Plan.

         Optionee  shall  enjoy  rights  as a  shareholder  until  such  time as
Optionee disposes of the Shares.

         6. TAX  CONSULTATION.  Optionee  understands  that  Optionee may suffer
adverse tax  consequences  as a result of Optionee's  purchase or disposition of
the  Shares.  Optionee  represents  that  Optionee  has  consulted  with any tax
consultants  Optionee  deems  advisable  in  connection  with  the  purchase  or
disposition  of the Shares and that  Optionee  is not relying on the Company for
any tax advice.

         7.       RESTRICTIVE LEGENDS AND STOCK-TRANSFER ORDERS.
                  ---------------------------------------------

                  (a) LEGENDS.  Optionee understands and agrees that the Company
shall  cause the legends  set forth  below or legends  substantially  equivalent
thereto, to be placed upon any certificate(s) evidencing ownership of the Shares
together  with any  other  legends  that  may be  required  by state or  federal
securities laws:

                  THE  SECURITIES  REPRESENTED  HEREBY HAVE NOT BEEN  REGISTERED
                  UNDER THE  SECURITIES  ACT OF 1933 (THE  "ACT") AND MAY NOT BE
                  OFFERED,   SOLD   OR   OTHERWISE   TRANSFERRED,   PLEDGED   OR
                  HYPOTHECATED  UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN
                  THE OPINION OF COUNSEL IN FORM AND SUBSTANCE  SATISFACTORY  TO
                  THE ISSUER OF THESE SECURITIES,  SUCH OFFER, SALE OR TRANSFER,
                  PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

                  THE SHARES  REPRESENTED  BY THIS  CERTIFICATE  ARE  SUBJECT TO
                  CERTAIN  RESTRICTIONS ON TRANSFER AS SET FORTH IN THE EXERCISE
                  NOTICE  BETWEEN  THE ISSUER AND THE  ORIGINAL  HOLDER OF THESE
                  SHARES,  A COPY OF  WHICH  MAY BE  OBTAINED  AT THE  PRINCIPAL
                  OFFICE OF THE ISSUER.  SUCH TRANSFER  RESTRICTIONS ARE BINDING
                  ON TRANSFEREES OF THESE SHARES.

                                       7
<PAGE>

                  (b) STOP-TRANSFER  NOTICES.  Optionee agrees that, in order to
ensure  compliance  with the  restrictions  referred to herein,  the Company may
issue appropriate stop-transfer  instructions to its transfer agent, if any, and
that,  if the Company  transfers  its own  securities,  it may make  appropriate
notations to the same effect in its own records.

                  (c) REFUSAL TO TRANSFER. The Company shall not be required (i)
to transfer on its books any Shares that have been sold or otherwise transferred
in  violation  of any of the  provisions  of this  Agreement or (ii) to treat as
owner of such  Shares or to accord  the  right to vote or pay  dividends  to any
purchaser  or  other   transferee  to  whom  such  Shares  shall  have  been  so
transferred.

         8.  MARKET  STANDOFF  AGREEMENT.  Optionee  hereby  agrees  that  if so
requested by the Company or any representative of the underwriters in connection
with any registration of the offering of any securities of the Company under the
1933 Act,  Optionee  shall not sell or  otherwise  transfer  any Shares or other
securities of the Company during the 180-day period following the effective date
of a registration  statement of the Company filed under the 1933 Act;  PROVIDED,
HOWEVER,  that such  restriction  shall only apply to the first two registration
statements of the Company to become  effective  under the 1933 Act which include
securities to be sold on behalf of the Company to the public in an  underwritten
public  offering  under the 1933 Act.  The  Company  may  impose  stop  transfer
instructions  with respect to securities  subject to the foregoing  restrictions
until the end of each such 180-day period.

         9.  SUCCESSORS  AND  ASSIGNS.  The Company may assign any of its rights
under this Agreement to single or multiple  assignees,  and this Agreement shall
inure to the benefit of the  successors  and assigns of the Company.  Subject to
the  restrictions on transfer herein set forth,  this Agreement shall be binding
upon Optionee and his or her heirs,  executors,  administrators,  successors and
assigns.

         10.  INTERPRETATION.  Any dispute regarding the  interpretation of this
Agreement  shall be  submitted  by Optionee or by the Company  forthwith  to the
Company's Board of Directors or  Administrator  of the Plan,  which shall review
such dispute at its next regular  meeting.  The  resolution of such a dispute by
the Board or  Administrator  shall be final and  binding on the  Company  and on
Optionee.

         11.  GOVERNING LAW;  SEVERABILITY.  This Agreement shall be governed by
and construed in accordance with the laws of the State of Florida excluding that
body of law  pertaining  to  conflicts  of law.  Should  any  provision  of this
Agreement be  determined by a court of law to be illegal or  unenforceable,  the
other   provisions  shall   nevertheless   remain  effective  and  shall  remain
enforceable.

         12. NOTICES.  Any notice required or permitted hereunder shall be given
in writing and shall be deemed  effectively given upon personal delivery or upon
deposit in the United  States  mail by  certified  mail,  with  postage and fees
prepaid,  addressed to the other party at its address as shown below beneath its
signature,  or to such other address as such party may designate in writing from
time to time to the other party.

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<PAGE>

          13.  FURTHER  INSTRUMENTS.  The parties  agree to execute such further
instruments  and to take such further  action as may be reasonably  necessary to
carry out the purposes and intent of this Agreement.

          14. DELIVERY OF PAYMENT. Optionee herewith delivers to the Company the
full Exercise Price for the Shares.

          15. ENTIRE AGREEMENT The Plan and Notice of Grant/Option Agreement are
incorporated  herein by reference.  This  Agreement,  the Plan and the Notice of
Grant/Option  Agreement  constitute  the entire  agreement  of the  parties  and
supersede in their entirety all prior undertakings and agreements of the Company
and Optionee with respect to the subject matter hereof.

Submitted by:                               Accepted by:

OPTIONEE:                                   WEALTHHOUND.COM, INC.

                    By:_____________________________________

                    Its:_____________________________________

(Signature)

ADDRESS                                     ADDRESS

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

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

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

                                       9SUBSCRIPTION AGREEMENT
                             ----------------------

Dear Subscriber:

         You (the "Subscriber")  hereby agree to purchase,  and Wealthhound.com,
Inc., a Florida  corporation (the "Company")  hereby agrees to issue and to sell
to the Subscriber,  8% Convertible Notes (the "Notes") convertible in accordance
with the terms thereof into shares of the Company's $.001 par value common stock
(the  "Company  Shares")  for the  aggregate  consideration  as set forth on the
signature  page  hereof  ["Purchase  Price"].  The form of  Convertible  Note is
annexed  hereto as Exhibit A. (The  Company  Shares are  sometimes  referred  to
herein as the  "Shares"  or "Common  Stock").  (The Notes,  the Company  Shares,
Common  Stock  Purchase  Warrants   ("Warrants")   issuable  to  the  recipients
identified on Schedule B hereto,  the Common Stock issuable upon exercise of the
Warrants,  and the Put Securities (as herein defined) are collectively  referred
to herein  as, the  "Securities").  Upon  acceptance  of this  Agreement  by the
Subscriber,  the  Company  shall issue and  deliver to the  Subscriber  the Note
against payment, by federal funds (U.S.) wire transfer of the Purchase Price.

                  The  following  terms  and  conditions  shall  apply  to  this
subscription.

                  1. Subscriber's Representations and Warranties. The Subscriber
hereby represents and warrants to and agrees with the Company that:

                           (a)  Information on Company.  The Subscriber has been
furnished  with the Company's  unaudited  financial  statements  (without  usual
financial  statements  footnotes) for the period ended May 31, 2000 (hereinafter
referred to as the "Reports"). In addition, the Subscriber has received from the
Company such other information  concerning its operations,  financial  condition
and  other  matters  as the  Subscriber  has  requested  (including  information
contained in the  Disclosure  Schedule  appended  hereto),  and  considered  all
factors  the  Subscriber  deems  material in  deciding  on the  advisability  of
investing in the Securities (such  information in writing is  collectively,  the
"Other Written Information").

                           (b)  Information on Subscriber.  The Subscriber is an
"accredited  investor",  as such term is defined in Regulation D promulgated  by
the Commission  under the Securities Act of 1933, as amended,  is experienced in
investments and business matters,  has made investments of a speculative  nature
and has  purchased  securities  of United  States  publicly-owned  companies  in
private placements in the past and, with its representatives, has such knowledge
and  experience in financial,  tax and other  business  matters as to enable the
Subscriber to utilize the information  made available by the Company to evaluate
the merits and risks of and to make an informed investment decision with respect
to the  proposed  purchase,  which  represents  a  speculative  investment.  The
Subscriber  has the authority and is duly and legally  qualified to purchase and
own the  Securities.  The Subscriber is able to bear the risk of such investment
for an indefinite period and to afford a complete loss thereof.

                           (c)  Purchase  of  Note.  On the  Closing  Date,  the
Subscriber will purchase the Note for its own account and not with a view to any
distribution thereof.

                           (d) Compliance  with  Securities  Act. The Subscriber
understands and agrees that the Securities  have not been  registered  under the
Securities  Act of 1933, as amended (the "1933 Act") by reason of their issuance
in a transaction that does not require registration under the 1933 Act, and that
such Securities must be held unless a subsequent disposition is registered under
the 1933 Act or is exempt from such registration.

                                      -1-
<PAGE>

                           (e) Company Shares Legend.  The Company  Shares,  and
the shares of Common Stock  issuable  upon the exercise of the  Warrants,  shall
bear the following legend:

           "THE  SHARES  REPRESENTED  BY THIS  CERTIFICATE  HAVE NOT BEEN
           REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THESE
           SHARES  MAY  NOT  BE  SOLD,   OFFERED  FOR  SALE,  PLEDGED  OR
           HYPOTHECATED  IN  THE  ABSENCE  OF AN  EFFECTIVE  REGISTRATION
           STATEMENT OR AN OPINION OF COUNSEL REASONABLY  SATISFACTORY TO
           WEALTHHOUND.COM, INC. THAT SUCH REGISTRATION IS NOT REQUIRED."

                           (f)  Warrants  Legend.  The  Warrants  shall bear the
following legend:

           "THIS WARRANT AND THE COMMON SHARES  ISSUABLE UPON EXERCISE OF
           THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
           OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS
           WARRANT AND THE COMMON  SHARES  ISSUABLE UPON EXERCISE OF THIS
           WARRANT  MAY  NOT  BE  SOLD,  OFFERED  FOR  SALE,  PLEDGED  OR
           HYPOTHECATED  IN  THE  ABSENCE  OF AN  EFFECTIVE  REGISTRATION
           STATEMENT  AS TO THIS  WARRANT  UNDER SAID ACT AND  APPLICABLE
           STATE  SECURITIES  LAWS OR AN OPINION  OF  COUNSEL  REASONABLY
           SATISFACTORY TO  WEALTHHOUND.COM,  INC. THAT SUCH REGISTRATION
           IS NOT REQUIRED."

                           (g) Note  Legend.  The Note shall bear the  following
legend:

          "THIS NOTE AND THE COMMON SHARES  ISSUABLE UPON  CONVERSION OF
          THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
          1933, AS AMENDED,  OR APPLICABLE  STATE  SECURITIES LAWS. THIS
          NOTE AND THE COMMON SHARES  ISSUABLE  UPON  CONVERSION OF THIS
          NOTE  MAY  NOT  BE  SOLD,   OFFERED   FOR  SALE,   PLEDGED  OR
          HYPOTHECATED  IN  THE  ABSENCE  OF AN  EFFECTIVE  REGISTRATION
          STATEMENT AS TO THIS NOTE UNDER SAID ACT AND APPLICABLE  STATE
          SECURITIES   LAWS  OR  AN  OPINION   OF   COUNSEL   REASONABLY
          SATISFACTORY TO  WEALTHHOUND.COM,  INC. THAT SUCH REGISTRATION
          IS NOT REQUIRED."

                           (h)  Communication  of  Offer.  The offer to sell the
Securities  was  directly  communicated  to the  Subscriber.  At no time was the
Subscriber  presented  with or solicited  by any leaflet,  newspaper or magazine
article,  radio  or  television  advertisement,  or any  other  form of  general
advertising  or solicited or invited to attend a promotional  meeting  otherwise
than in connection and concurrently with such communicated offer.

                           (i)  Correctness of  Representations.  The Subscriber
represents  that  the  foregoing  representations  and  warranties  are true and
correct as of the date hereof and, unless the Subscriber

                                      -2-
<PAGE>

otherwise  notifies  the  Company  prior to the  Closing  Date  (as  hereinafter
defined),  shall be true and  correct  as of the  Closing  Date.  The  foregoing
representations and warranties shall survive the Closing Date.

                  2.  Company   Representations  and  Warranties.   The  Company
represents  and warrants to and agrees with the Subscriber  that,  except as set
forth on the Disclosure Schedule annexed hereto:

                           (a) Due  Incorporation.  The  Company and each of its
subsidiaries  is a  corporation  duly  organized,  validly  existing and in good
standing under the laws of the respective  jurisdictionss of their incorporation
and have the requisite  corporate power to own their  properties and to carry on
their business as now being conducted.  The Company and each of its subsidiaries
is  duly  qualified  as a  foreign  corporation  to do  business  and is in good
standing in each  jurisdiction  where the nature of the  business  conducted  or
property  owned by it makes  such  qualification  necessary,  other  than  those
jurisdictions  in which the  failure  to so  qualify  would not have a  material
adverse effect on the business,  operations or prospects or condition (financial
or  otherwise)  of the  Company.  For the  purposes of this  Section 2, the term
"subsidiaries"  shall not include the entities listed in the Disclosure Schedule
which are either inactive or administratively dissolved.

                           (b)  Outstanding  Stock.  All issued and  outstanding
shares of capital  stock of the  Company and each of its  subsidiaries  has been
duly authorized and validly issued and are fully paid and non-assessable.

                           (c)  Authority;  Enforceability.  This  Agreement has
been duly  authorized,  executed and delivered by the Company and is a valid and
binding  agreement   enforceable  in  accordance  with  its  terms,  subject  to
bankruptcy,  insolvency,  fraudulent  transfer,  reorganization,  moratorium and
similar laws of general applicability relating to or affecting creditors' rights
generally  and to  general  principles  of  equity;  and the  Company  has  full
corporate  power and  authority  necessary to enter into this  Agreement  and to
perform its obligations  hereunder and all other agreements  entered into by the
Company relating hereto.

                           (d)  Additional  Issuances.  There are no outstanding
agreements or preemptive or similar rights  affecting the Company's common stock
or equity  and no  outstanding  rights,  warrants  or  options  to  acquire,  or
instruments   convertible   into  or   exchangeable   for,  or   agreements   or
understandings  with  respect  to the sale or  issuance  of any shares of common
stock  or  equity  of  the  Company  or  other  equity  interest  in  any of the
subsidiaries of the Company,  except as set forth in the Disclosure Schedule and
as described in the Reports or Other Written Information.

                           (e) Consents. No consent, approval,  authorization or
order  of  any  court,   governmental   agency  or  body  or  arbitrator  having
jurisdiction over the Company, or any of its affiliates, the NASD, NASDAQ or the
Company's  Shareholders  is required for  execution of this  Agreement,  and all
other  agreements  entered  into by the  Company  relating  thereto,  including,
without limitation  issuance and sale of the Securities,  and the performance of
the Company's obligations hereunder.

                           (f)  No   Violation   or   Conflict.   Assuming   the
representations  and  warranties  of the  Subscriber in Paragraph 1 are true and
correct and the Subscriber  complies with its obligations  under this Agreement,
neither the  issuance  and sale of the  Securities  nor the  performance  of its
obligations  under this Agreement and all other  agreements  entered into by the
Company relating thereto by the Company will:

                                    (i)  violate,  conflict  with,  result  in a
breach of, or  constitute a default (or an event which with the giving of notice
or the lapse of time or both would be reasonably likely to constitute a default)
under (A) the articles of  incorporation,  charter or bylaws of the Company,  or
any of its affiliates,  (B) to the Company's  knowledge,  any decree,  judgment,
order, law, treaty, rule, regulation or

                                      -3-
<PAGE>

determination  applicable to the Company, or any of its affiliates of any court,
governmental agency or body, or arbitrator having jurisdiction over the Company,
or any of its affiliates or over the properties or assets of the Company, or any
of its affiliates,  except as to foreign law applicable to the  Subscriber,  (C)
the terms of any bond, debenture, note or any other evidence of indebtedness, or
any agreement,  stock option or other similar plan, indenture,  lease, mortgage,
deed of trust or other instrument to which the Company, or any of its affiliates
is a party, by which the Company, or any of its affiliates is bound, or to which
any of the properties of the Company,  or any of its  affiliates is subject,  or
(D) the terms of any  "lock-up"  or similar  provision  of any  underwriting  or
similar agreement to which the Company, or any of its affiliates is a party; or

                                    (ii) result in the creation or imposition of
any lien,  charge or encumbrance upon the Securities or any of the assets of the
Company, or any of its affiliates.

                           (g) The Securities. The Securities upon issuance:

                                    (i) are,  or will be,  free and clear of any
security interests, liens, claims or other encumbrances, subject to restrictions
upon transfer under the 1933 Act and State laws;

                                    (ii) have been, or will be, duly and validly
authorized  and on the date of issuance and on the Closing Date, as  hereinafter
defined, and the date the Note is converted, and the Warrants are exercised, the
Securities will be duly and validly issued, fully paid and nonassessable (and if
registered  pursuant  to the 1933  Act,  and  resold  pursuant  to an  effective
registration statement will be free trading and unrestricted,  provided that the
Subscriber complies with the Prospectus delivery requirements);

                                    (iii)  will not have been  issued or sold in
violation  of any  preemptive  or other  similar  rights of the  holders  of any
securities of the Company;

                                    (iv) will not subject the holders thereof to
personal liability by reason of being such holders; and

                           (h)  Litigation.  There is no pending or, to the best
knowledge of the Company,  threatened action, suit,  proceeding or investigation
before any court, governmental agency or body, or arbitrator having jurisdiction
over the Company,  or any of its  affiliates  that would affect the execution by
the  Company or the  performance  by the Company of its  obligations  under this
Agreement, and all other agreements entered into by the Company relating hereto.

                           (i)  Disability.  The Company has no knowledge of any
impediment,  which is not  expected  to be  eliminated  and which would or could
prevent the Company  from  becoming a fully  reporting  company  with a class of
common stock registered pursuant to Section 12(g) of the Securities Exchange Act
of 1934, as amended (the "1934 Act").

                           (j) No  Market  Manipulation.  The  Company  has  not
taken,  and will not take,  directly or indirectly,  any action  designed to, or
that might  reasonably  be  expected  to,  cause or result in  stabilization  or
manipulation  of the price of the common stock of the Company to facilitate  the
sale or resale of the Securities or affect the price at which the Securities may
be issued.

                           (k) Information  Concerning Company.  The Reports and
Other  Written  Information  contain all  material  information  relating to the
Company and its operations and financial  condition as of their respective dates
which  information  is required to be disclosed  therein.  Since the date of the
financial  statements  included  in the  Reports,  and except as modified in the
Other  Written  Information,

                                      -4-
<PAGE>

there has been no material adverse change in the Company's  business,  financial
condition or affairs not disclosed in the Reports. The Reports and Other Written
Information  do not contain any untrue  statement of a material  fact or omit to
state a material  fact  required to be stated  therein or  necessary to make the
statements therein not misleading.

                           (l)  Dilution.  The  number of Shares  issuable  upon
conversion  of the Note may  increase  substantially  in certain  circumstances,
including,  but not necessarily limited to, the circumstance wherein the trading
price  of the  Common  Stock  declines  prior to  conversion  of the  Note.  The
Company's executive officers and directors have studied and fully understand the
nature of the  Securities  being  sold  hereby  and  recognize  that they have a
potential  dilutive effect. The board of directors of the Company has concluded,
in its good faith business judgment, that such issuance is in the best interests
of the Company.  The Company  specifically  acknowledges  that its obligation to
issue the Shares upon  conversion  of the Note and  exercise of the  Warrants is
binding upon the Company and enforceable,  except as otherwise described in this
Subscription Agreement or the Note, regardless of the dilution such issuance may
have on the ownership interests of other shareholders of the Company.

                           (m)Stop  Transfer.   The  Securities  are  restricted
securities as of the date of this Agreement. The Company will not issue any stop
transfer  order or other order  impeding the sale and delivery of the Securities
at such time as the  Securities  are  registered for public sale or an exemption
from registration is available.

                           (n)  Defaults.  Neither  the  Company  nor any of its
subsidiaries is in violation of its Articles of Incorporation or ByLaws. Neither
the Company nor any of its  subsidiaries is (i) in default under or in violation
of any other material agreement or instrument to which it is a party or by which
it or any of its  properties  are bound or affected,  which default or violation
would have a  material  adverse  effect on the  Company,  (ii) in  default  with
respect to any order of any court, arbitrator or governmental body or subject to
or party to any order of any court or governmental  authority arising out of any
action, suit or proceeding under any statute or other law respecting  antitrust,
monopoly, restraint of trade, unfair competition or similar matters, or (iii) to
its  knowledge  in  violation  of  any  statute,   rule  or  regulation  of  any
governmental  authority which violation would have a material  adverse effect on
the Company.

                           (o) No Integrated Offering.  Neither the Company, nor
any of its  affiliates,  nor any  person  acting  on its or  their  behalf,  has
directly or indirectly made any offers or sales of any security or solicited any
offers to buy any security under  circumstances that would cause the offering of
the Securities  pursuant to this Agreement to be integrated with prior offerings
by the Company for purposes of the 1933 Act which would prevent the Company from
selling  the  Securities  pursuant  to Rule  506  under  the  1933  Act,  or any
applicable Exchange Act related stockholder approval provisions.

                           (p) No General Solicitation. Neither the Company, nor
any of its affiliates,  nor to its knowledge,  any person acting on its or their
behalf, has engaged in any form of general  solicitation or general  advertising
(within the meaning of Regulation D under the Act) in connection  with the offer
or sale of the Securities.

                           (q) Listing. The Company's Common Stock is listed for
quotation on the OTC Pink Sheets ("Pink Sheets") and satisfies all  requirements
for the  continuation  of such listing.  The Company has not received any notice
that its common  stock will be delisted  from the Pink Sheets or that the common
stock does not meet all requirements for the continuation of such listing.

                           (r)  Correctness  of  Representations.   The  Company
represents  that  the  foregoing  representations  and  warranties  are true and
correct as of the date hereof in all material respects,

                                      -5-
<PAGE>

will be true and  correct  as of the  Closing  Date,  and,  unless  the  Company
otherwise  notifies the Subscriber  prior to the Closing Date, shall be true and
correct  in  all  material  respects  as of  the  Closing  Date.  The  foregoing
representations and warranties shall survive the Closing Date.

                  3. Regulation D Offering. This Offering is being made pursuant
to the exemption from the registration provisions of the Securities Act of 1933,
as amended,  afforded by Rule 506 of Regulation D promulgated thereunder. On the
Closing Date, the Company will provide an opinion  acceptable to Subscriber from
the Company's  legal counsel  opining on the  availability  of the  Regulation D
exemption as it relates to the offer and issuance of the  Securities.  A form of
the legal opinion is annexed  hereto as Exhibit C. The Company will provide,  at
the Company's expense, such other legal opinions in the future as are reasonably
necessary for the conversion of the Note and exercise of the Warrants.

                  4.  Reissuance of  Securities.  The Company  agrees to reissue
certificates  representing  the  Securities  without  the  legends  set forth in
Sections 1(e) and 1(f) above at such time as (a) the holder thereof is permitted
to dispose of such Securities pursuant to Rule 144(k) under the Act, or (b) upon
resale subject to an effective  registration  statement after the Securities are
registered under the Act. The Company agrees to cooperate with the Subscriber in
connection with all resales  pursuant to Rule 144(d) and Rule 144(k) and provide
legal  opinions  necessary  to allow such  resales  provided the Company and its
counsel receive  reasonably  requested  representations  from the Subscriber and
selling broker, if any.

                  5.  Redemption.  The  Company  may not redeem  the  Securities
without  the  consent  of the  holder  of the  Securities  except  as  otherwise
described herein.

                  6.       Fees/Warrants.

                           (a)  The   Company   shall  pay  to  counsel  to  the
Subscriber its fee of $20,000 for services  rendered to Subscribers in reviewing
this  Agreement and other  Subscription  Agreements  for aggregate  subscription
amounts of up to $1,250,000 (the "Initial Offering"), and acting as escrow agent
for the  Initial  Offering.  The  Company  will pay a cash fee in the  amount of
twelve percent (12%) of the Purchase Price and Put Purchase Price  designated on
the signature page hereto ("Finder's Fee") to the Finders identified on Schedule
B hereto.  The Finder's Fee must be paid each Closing Date and Put Closing Date.
The Finder's Fee and legal fees will be payable out of funds held  pursuant to a
Funds Escrow  Agreement to be entered  into by the  Company,  Subscriber  and an
Escrow  Agent.  At the  Closing,  the Company will also issue and deliver to the
Warrant  Recipients  the  Warrants  in the amounts  and at the  exercise  prices
designated on Schedule B hereto.

                           (b) The  Finder's  Fee and legal fees will be paid to
the Finders and attorneys  only when,  as, and if a  corresponding  subscription
amount  is  released  from  escrow  to the  Company.  All  the  representations,
covenants, warranties, undertakings, and indemnification, other rights including
but not limited to registration  rights, and rights in Section 9 hereof, made or
granted to or for the benefit of the Subscriber are hereby also made and granted
to the Warrant Recipients in respect of the Warrants and Company Shares issuable
upon exercise of the Warrants.

                  7. Covenants of the Company.  The Company covenants and agrees
with the Subscriber as follows:

                           (a) The Company will advise the Subscriber,  promptly
after it receives notice of issuance by the Securities and Exchange  Commission,
any state securities  commission or any other  regulatory  authority of any stop
order or of any order preventing or suspending any offering of any securities of
the Company,  or of the suspension of the  qualification  of the common stock of
the Company for offering or sale in any  jurisdiction,  or the initiation of any
proceeding for any such purpose.

                                      -6-
<PAGE>

                           (b) The Company shall promptly  secure the listing of
the Company Shares,  and Common Stock issuable upon the exercise of the Warrants
upon each national securities  exchange,  or automated quotation system, if any,
upon which shares of Common Stock are then listed (subject to official notice of
issuance) and shall  maintain such listing so long as any other shares of Common
Stock shall be so listed.  The Company will use its best efforts to maintain the
listing of its Common Stock on the Pink Sheets,  and will comply in all respects
with the Company's  reporting,  filing and other obligations under the bylaws or
rules of the  National  Association  of  Securities  Dealers  ("NASD")  and such
exchanges, as applicable.  The Company will provide the Subscriber copies of all
notices it receives notifying the Company of the threatened and actual delisting
of the Common  Stock on any  exchange  or  quotation  system on which the Common
Stock is listed.

                           (c) The  Company  shall  notify  the  SEC,  NASD  and
applicable  state  authorities,  in accordance with their  requirements,  of the
transactions  contemplated by this Agreement, and shall take all other necessary
action and  proceedings as may be required and permitted by applicable law, rule
and  regulation,  for the legal  and valid  issuance  of the  Securities  to the
Subscriber and promptly provide copies thereof to Subscriber.

                           (d)  Until  at  least   two  (2)   years   after  the
effectiveness  of  the  Registration  Statement  on  Form  SB-2  or  such  other
Registration  Statement  described in Section 10.1(iv) hereof,  the Company will
(i) cause its Common Stock to continue to be registered  under Sections 12(b) or
12(g) of the Exchange  Act,  (ii) comply in all respects  with its reporting and
filing  obligations  under the Exchange  Act,  (iii)  comply with all  reporting
requirements  that is applicable to an issuer with a class of Shares  registered
pursuant  to  Section  12(g)  of the  Exchange  Act,  and (iv)  comply  with all
requirements  related  to any  registration  statement  filed  pursuant  to this
Agreement. The Company will not take any action or file any document (whether or
not  permitted  by the  Act or the  Exchange  Act or the  rules  thereunder)  to
terminate or suspend such  registration or to terminate or suspend its reporting
and  filing  obligations  under  said Acts  until the later of (y) two (2) years
after the  effective  date of the  Registration  Statement  on Form SB-2 or such
other  Registration  Statement  described in Section 10.1(iv) hereof, or (z) the
sale by the  Subscribers  of all the  Company  Shares  issuable  by the  Company
pursuant to this Agreement. Until at least two (2) years after the Warrants have
been exercised,  the Company will initiate or continue the listing or trading of
its Common Stock on the Pink Sheets or NASD OTC  Bulletin  Board and will comply
in all respects with the Company's reporting, filing and other obligations under
the bylaws or rules of the NASD and NASDAQ.

                           (e) The Company undertakes to use the proceeds of the
Subscriber's funds for working capital and expenses of this offering.

                  8.   Covenants of the Company and Subscriber Regarding
                       -------------------------------------------------
                       Idemnification.
                       ---------------

                           (a) The Company  agrees to indemnify,  hold harmless,
reimburse  and defend  Subscriber,  Subscriber's  officers,  directors,  agents,
affiliates,  control  persons,  and principal  shareholders,  against any claim,
cost, expense, liability, obligation, loss or damage (including reasonable legal
fees) of any  nature,  incurred by or imposed  upon  Subscriber  which  results,
arises out of or is based upon (i) any misrepresentation by Company or breach of
any  warranty  by Company in this  Agreement  or in any  Exhibits  or  Schedules
attached hereto, or Reports or other Written Information;  or (ii) any breach or
default in performance by Company of any covenant or undertaking to be performed
by Company  hereunder,  or any other  agreement  entered into by the Company and
Subscribers relating hereto.

                                      -7-
<PAGE>

                           (b)  Subscriber  agrees to indemnify,  hold harmless,
reimburse and defend the Company at all times against any claim, cost,  expense,
liability,  obligation,  loss or damage (including reasonable legal fees) of any
nature,  incurred by or imposed upon the Company which results, arises out of or
is based upon (a) any  misrepresentation  by Subscriber in this  Agreement or in
any  Exhibits  or  Schedules  attached  hereto;  or (b) any breach or default in
performance  by  Subscriber  of any covenant or  undertaking  to be performed by
Subscriber  hereunder,  or any other  agreement  entered into by the Company and
Subscribers relating hereto.

                           (c) The  procedures  set forth in Section  10.6 shall
apply to the indemnifications set forth in Sections 8(a) and 8(b) above.

                  9.1.     Conversion of Note.
                           ------------------

                           (a) Upon the  conversion of the Note or part thereof,
the  Company  shall,  at its own cost and  expense,  take all  necessary  action
(including  the issuance of an opinion of counsel) to assure that the  Company's
transfer agent shall issue stock  certificates in the name of Subscriber (or its
nominee)  or  such  other  persons  as  designated  by  Subscriber  and in  such
denominations to be specified at conversion representing the number of shares of
common  stock  issuable  upon such  conversion.  The  Company  warrants  that no
instructions  other  than these  instructions  have been or will be given to the
transfer  agent of the  Company's  Common  Stock  and that  the  Shares  will be
unlegended, free-trading, and freely transferable, and will not contain a legend
restricting  the resale or  transferability  of the Company Shares  provided the
Subscriber has notified the Company of Subscriber's intention to sell the Shares
and the  Shares are  included  in an  effective  registration  statement  or are
otherwise exempt from registration when sold.

                           b.  Subscriber  will give  notice of its  decision to
exercise  its  right to  convert  the Note or part  thereof  by  telecopying  an
executed and completed notice of Conversion to the Company.  The Subscriber will
not be required to surrender the Note until the Note has been fully converted or
satisfied.  Each  date on which a Notice  of  Conversion  is  telecopied  to the
Company in accordance  with the  provisions  hereof shall be deemed a Conversion
Date.  The Company  will or cause the transfer  agent to transmit the  Company's
common stock  certificates  representing  the Shares issuable upon conversion of
the Note (and a Note  representing the balance of the Note not so converted,  if
requested by Subscriber)  to the  Subscriber via express  courier for receipt by
such  Subscriber  within five  business days after receipt by the Company of the
Notice of  Conversion  (the  "Delivery  Date").  To the extent that a Subscriber
elects  not  to  surrender  a  Note  for  reissuance  upon  partial  payment  or
conversion,  the Subscriber  hereby  indemnifies the Company against any and all
loss or damage attributable to a third-party claim in an amount in excess of the
actual amount then due under the Note.

                           c.  The  Company  understands  that  a  delay  in the
delivery of the Shares in the form required pursuant to Section 9 hereof, or the
Mandatory Redemption Amount described in Section 9.2 hereof, beyond the Delivery
Date or Mandatory  Redemption Payment Date (as hereinafter defined) could result
in economic loss to the  Subscriber.  As compensation to the Subscriber for such
loss,  the  Company  agrees  to pay late  payments  to the  Subscriber  for late
issuance  of Shares  in the form  required  pursuant  to  Section 9 hereof  upon
Conversion of the Note or late payment of the Mandatory  Redemption  Amount,  in
the  amount  of $100 per  business  day  after the  Delivery  Date or  Mandatory
Redemption  Payment Date, as the case may be, for each $10,000 of Note principal
amount being converted or redeemed.  The Company shall pay any payments incurred
under this Section in immediately available funds upon demand.  Furthermore,  in
addition to any other remedies which may be available to the Subscriber,  in the
event that the Company fails for any reason to effect  delivery of the Shares by
the Delivery Date or make payment by the Mandatory  Redemption Payment Date, the
Subscriber  will be  entitled  to revoke all or part of the  relevant  Notice of
Conversion  or rescind  all or part of the  notice of  Mandatory  Redemption  by
delivery of a notice to such

                                      -8-
<PAGE>

effect to the Company  whereupon  the Company and the  Subscriber  shall each be
restored to their respective positions immediately prior to the delivery of such
notice,  except  that late  payment  charges  described  above  shall be payable
through the date notice of revocation or rescission is given to the Company.

                           d.  Nothing  contained  herein  or  in  any  document
referred  to herein  or  delivered  in  connection  herewith  shall be deemed to
establish  or require  the  payment of a rate of  interest  or other  charges in
excess of the maximum permitted by applicable law. In the event that the rate of
interest or dividends  required to be paid or other charges hereunder exceed the
maximum  permitted by such law, any payments in excess of such maximum  shall be
credited against amounts owed by the Company to the Subscriber and thus refunded
to the Company.

                  9.2.  Mandatory  Redemption.  In the event the Company may not
issue Shares on a Delivery Date or at any time when the Note is convertible, for
any reason,  then at the  Subscriber's  election,  the  Company  must pay to the
Subscriber  five (5) business  days after  request by the  Subscriber  or on the
Delivery  Date (if  requested by the  Subscriber)  a sum of money  determined by
multiplying  the principal of the Note not  convertible  by 130%,  together with
accrued  but unpaid  interest  thereon  ("Mandatory  Redemption  Payment").  The
Mandatory Redemption Payment must be received by the Subscriber on the same date
as the Company  Shares  otherwise  deliverable  or within five (5) business days
after request,  whichever is sooner ("Mandatory  Redemption Payment Date"). Upon
receipt of the Mandatory  Redemption  Payment,  the corresponding Note principal
and interest will be deemed paid and no longer outstanding.

                  9.3. Maximum Conversion.  The Subscriber shall not be entitled
to convert on a Conversion  Date that amount of the Note in connection with that
number of shares of Common  Stock which would be in excess of the sum of (i) the
number of shares of Common Stock  beneficially  owned by the  Subscriber and its
affiliates on a Conversion  Date,  and (ii) the number of shares of Common Stock
issuable upon the conversion of the Note with respect to which the determination
of this  proviso is being  made on a  Conversion  Date,  which  would  result in
beneficial  ownership by the Subscriber and its affiliates of more than 9.99% of
the outstanding  shares of Common Stock of the Company on such Conversion  Date.
For  the  purposes  of  the  proviso  to  the  immediately  preceding  sentence,
beneficial ownership shall be determined in accordance with Section 13(d) of the
Securities  Exchange Act of 1934, as amended,  and Regulation 13d-3  thereunder.
Subject to the  foregoing,  the  Subscriber  shall not be  limited to  aggregate
conversions of only 9.99%.  The  Subscriber  may void the conversion  limitation
described  in this  Section 9.3 upon 75 days prior  notice to the  Company.  The
Subscriber may allocate  which of the equity of the Company deemed  beneficially
owned by the Subscriber  shall be included in the 9.99% amount  described  above
and which shall be allocated to the excess above 9.99%.

                  9.4.  Injunction - Posting of Bond.  In the event a Subscriber
shall  elect to  convert a Note or part  thereof,  the  Company  may not  refuse
conversion  based on any claim that such  Subscriber  or any one  associated  or
affiliated  with such  Subscriber  has been  engaged  in any  violation  of law,
unless,  an injunction  from a court,  on notice,  restraining  and or enjoining
conversion  of all or part of said Note shall have been sought and  obtained and
the Company posts a surety bond for the benefit of such Subscriber in the amount
of 130% of the amount of the Note,  which is subject  to the  injunction,  which
bond shall remain in effect until the  completion of  arbitration/litigation  of
the dispute and the proceeds of which shall be payable to such Subscriber to the
extent it obtains judgment.

                  9.5. Buy-In.  In addition to any other rights available to the
Subscriber,  if the  Company  fails to deliver  to the  Subscriber  such  shares
issuable  upon  conversion  of a Note by the  Delivery  Date  and if  after  the
Delivery  Date  the  Subscriber  purchases  (in an open  market  transaction  or
otherwise)  shares of Common Stock to deliver in  satisfaction of a sale by such
Subscriber of the Common Stock which the Subscriber  anticipated  receiving upon
such  conversion  (a  "Buy-In"),  then  the  Company  shall  pay in  cash to

                                      -9-
<PAGE>

the  Subscriber  (in  addition to any  remedies  available  to or elected by the
Subscriber)  the  amount  by which (A) the  Subscriber's  total  purchase  price
(including  brokerage  commissions,  if any) for the  shares of Common  Stock so
purchased exceeds (B) the aggregate principal and/or interest amount of the Note
for which such conversion was not timely honored, together with interest thereon
at a rate of 15% per annum,  accruing until such amount and any accrued interest
thereon is paid in full (which  amount shall be paid as  liquidated  damages and
not as a penalty).  For example,  if the Subscriber  purchases  shares of Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to
an  attempted  conversion  of $10,000 of note  principal  and/or  interest,  the
Company  shall be required to pay the  Subscriber  $1,000,  plus  interest.  The
Subscriber  shall  provide the Company  written  notice  indicating  the amounts
payable to the Subscriber in respect of the Buy-In.

                  10.1.  Registration  Rights.  The  Company  hereby  grants the
following registration rights to holders of the Securities.

                           (i) On one occasion, for a period commencing 151 days
after the Closing  Date,  but not later than three years after the Closing  Date
("Request Date"),  the Company,  upon a written request therefor from any record
holder or  holders of more than 50% of the  aggregate  of the  Company's  Shares
issued and  issuable  upon  Conversion  of the Note and the Put Notes  which are
actually  issued,  (the  Securities,  Put Securities  and  securities  issued or
issuable by virtue of ownership of the Securities,  and Put  Securities,  being,
the  "Registrable   Securities"),   shall  prepare  and  file  with  the  SEC  a
registration  statement under the Act covering the Registrable  Securities which
are the subject of such  request,  unless such  Registrable  Securities  are the
subject of an effective registration statement. In addition, upon the receipt of
such request, the Company shall promptly give written notice to all other record
holders of the Registrable  Securities that such registration statement is to be
filed and shall include in such registration  statement  Registrable  Securities
for which it has  received  written  requests  within 10 days after the  Company
gives such written notice.  Such other requesting record holders shall be deemed
to have exercised their demand registration right under this Section 10.1(i). As
a condition  precedent to the inclusion of  Registrable  Securities,  the holder
thereof  shall  provide  the  Company  with  such  information  as  the  Company
reasonably  requests.  The obligation of the Company under this Section  10.1(i)
shall be limited to one registration statement.

                           (ii) If the Company at any time  proposes to register
any of its securities under the Act for sale to the public,  whether for its own
account  or for the  account of other  security  holders  or both,  except  with
respect  to  registration  statements  on Forms  S-4,  S-8 or  another  form not
available for  registering  the  Registrable  Securities for sale to the public,
provided the Registrable  Securities are not otherwise  registered for resale by
the Subscriber or Holder pursuant to an effective registration  statement,  each
such  time it will give at least 30 days'  prior  written  notice to the  record
holder of the Registrable Securities of its intention so to do. Upon the written
request of the holder,  received by the Company  within 30 days after the giving
of any  such  notice  by  the  Company,  to  register  any  of  the  Registrable
Securities,  the  Company  will cause such  Registrable  Securities  as to which
registration  shall have been so requested to be included with the securities to
be covered by the  registration  statement  proposed to be filed by the Company,
all to the  extent  required  to  permit  the sale or other  disposition  of the
Registrable   Securities  so  registered  by  the  holder  of  such  Registrable
Securities (the "Seller").  In the event that any registration  pursuant to this
Section 10.1(ii) shall be, in whole or in part, an underwritten  public offering
of common stock of the Company,  the number of shares of Registrable  Securities
to be  included  in  such  an  underwriting  may  be  reduced  by  the  managing
underwriter  if and to the extent  that the Company  and the  underwriter  shall
reasonably  be of the opinion that such  inclusion  would  adversely  affect the
marketing  of the  securities  to be  sold  by the  Company  therein;  provided,
however,  that the  Company  shall  notify  the  Seller in  writing  of any such
reduction.  Notwithstanding the forgoing provisions, or Section 10.4 hereof, the
Company may  withdraw or delay or suffer a delay of any  registration  statement
referred to in this Section 10.1(ii) without thereby  incurring any liability to
the Seller.

                                      -10-
<PAGE>

                           (iii)  If,  at  the  time  any  written  request  for
registration is received by the Company pursuant to Section 10.1(i), the Company
has  determined  to  proceed  with  the  actual  preparation  and  filing  of  a
registration  statement under the 1933 Act in connection with the proposed offer
and sale for cash of any of its securities  for the Company's own account,  such
written request shall be deemed to have been given pursuant to Section  10.1(ii)
rather  than  Section  10.1(i),  and the rights of the  holders  of  Registrable
Securities covered by such written request shall be governed by Section 10.1(ii)
except  that  the  Company  or  underwriter,  if  any,  may  not  withdraw  such
registration  or limit the amount of  Registrable  Securities  included  in such
registration.

                           (iv) The  Company  shall  file  with  the  Commission
within 90 days of the Closing Date (the "Filing  Date"),  and use its reasonable
commercial  efforts to cause to be declared  effective a Form SB-2  registration
statement (or such other form that it is eligible to use) within 120 days of the
Closing  Date in order to register  the  Registrable  Securities  for resale and
distribution  under  the  Act.  The  registration  statement  described  in this
paragraph must be declared  effective by the  Commission  within 150 days of the
Closing Date (as defined herein)  ("Effective  Date"). The Company will register
not  less  than a  number  of  shares  of  Common  Stock  in the  aforedescribed
registration  statement that is equal to 200% of the Company Shares  issuable at
the Conversion  Price that would be in effect on the Closing Date or the date of
filing of such registration statement,  assuming the conversion of all the Notes
and issuance and conversion of the Put Notes,  and one share of common stock for
each  common  share  issuable  upon  exercise  of the  Warrants  (in each  case,
employing  the  Conversion  Price that  would  result in the  greater  number of
Shares). The Registrable  Securities shall be reserved and set aside exclusively
for the benefit of the  Subscriber and Warrant  Recipients,  as the case may be,
and not issued,  employed or reserved for anyone other than the  Subscriber  and
Warrant  Recipients.  Such  registration  statement will be promptly  amended or
additional  registration  statements  will be  promptly  filed by the Company as
necessary to register  additional  Company  Shares to allow the public resale of
all  Common  Stock  included  in and  issuable  by  virtue  of  the  Registrable
Securities.  No securities of the Company other than the Registrable  Securities
will be  included  in the  registration  statement  described  in  this  Section
10.1(iv).

                  10.2. Registration Procedures.  If and whenever the Company is
required by the provisions  hereof to effect the  registration  of any shares of
Registrable  Securities  under the Act, the Company  will, as  expeditiously  as
possible:

                           (a)   prepare   and  file  with  the   Commission   a
registration  statement with respect to such securities and use its best efforts
to cause such  registration  statement  to become and remain  effective  for the
period of the distribution contemplated thereby (determined as herein provided),
and  promptly  provide to the holders of  Registrable  Securities  copies of all
filings and Commission letters of comment;

                           (b)  prepare  and  file  with  the  Commission   such
amendments  and  supplements to such  registration  statement and the prospectus
used in  connection  therewith  as may be  necessary  to keep such  registration
statement  effective  until the  latest  of:  (i) six  months  after the  latest
exercise  period of the Warrants;  (ii) twelve months after the Maturity Date of
the Note or Put Note; or (iii) two years after the Closing Date, and comply with
the  provisions  of  the  Act  with  respect  to the  disposition  of all of the
Registrable Securities covered by such registration statement in accordance with
the  Seller's  intended  method of  disposition  set forth in such  registration
statement for such period;

                           (c) furnish to the Seller, and to each underwriter if
any,  such number of copies of the  registration  statement  and the  prospectus
included  therein  (including  each  preliminary  prospectus)  as  such  persons
reasonably  may  request  in  order  to  facilitate  the  public  sale or  their
disposition of the securities covered by such registration statement;

                                      -11-
<PAGE>

                           (d) use its best  efforts to  register or qualify the
Seller's Registrable Securities covered by such registration statement under the
securities  or "blue  sky" laws of such  jurisdictions  as the Seller and in the
case  of  an  underwritten  public  offering,  the  managing  underwriter  shall
reasonably request,  provided,  however, that the Company shall not for any such
purpose be  required  to qualify  generally  to  transact  business as a foreign
corporation  in any  jurisdiction  where it is not so qualified or to consent to
general service of process in any such jurisdiction;

                           (e) list the Registrable  Securities  covered by such
registration statement with any securities exchange on which the Common Stock of
the Company is then listed;

                           (f)   immediately   notify   the   Seller   and  each
underwriter  under such  registration  statement  at any time when a  prospectus
relating  thereto is required to be delivered under the Act, of the happening of
any event of which the Company has knowledge as a result of which the prospectus
contained in such registration  statement, as then in effect, includes an untrue
statement of a material  fact or omits to state a material  fact  required to be
stated  therein or necessary to make the  statements  therein not  misleading in
light of the circumstances then existing;

                           (g) make available for inspection by the Seller,  any
underwriter  participating  in any  distribution  pursuant to such  registration
statement, and any attorney, accountant or other agent retained by the Seller or
underwriter,  all  publicly  available,  non-confidential  financial  and  other
records,  pertinent corporate documents and properties of the Company, and cause
the  Company's  officers,   directors  and  employees  to  supply  all  publicly
available,  non-confidential  information  reasonably  requested  by the seller,
underwriter,  attorney, accountant or agent in connection with such registration
statement.

                  10.3.    Provision of Documents.
                           ----------------------

                           (a) At the request of the  Seller,  provided a demand
for  registration  has been made  pursuant  to Section  10.1(i) or a request for
registration  has been  made  pursuant  to  Section  10.1(ii),  the  Registrable
Securities  will be included in a registration  statement filed pursuant to this
Section 10.

                           (b) In connection with each  registration  hereunder,
the  Seller  will  furnish  to the  Company  in  writing  such  information  and
representation  letters with respect to itself and the proposed  distribution by
it as reasonably  shall be necessary in order to assure  compliance with federal
and  applicable  state  securities  laws. In connection  with each  registration
pursuant  to  Section  10.1(i)  or  10.1(ii)  covering  an  underwritten  public
offering,  the  Company and the Seller  agree to enter into a written  agreement
with the managing underwriter in such form and containing such provisions as are
customary  in the  securities  business  for such an  arrangement  between  such
underwriter and companies of the Company's size and investment stature.

                  10.4.  Non-Registration Events. The Company and the Subscriber
agree that the Seller will suffer damages if any registration statement required
under  Section  10.1(i)  or  10.1(ii)  above is not filed  within 90 days  after
written  request by the  Holder and not  declared  effective  by the  Commission
within 120 days after such  request [or the  Effective  Date in reference to the
Registration  Statement  on Form SB-2 or such  other form  described  in Section
10.1(iv)], and maintained in the manner and within the time periods contemplated
by Section 10 hereof,  and it would not be feasible to  ascertain  the extent of
such damages with  precision.  Accordingly,  if (i) the  Registration  Statement
described  in Sections  10.1(i) or 10.1(ii) is not filed  within 90 days of such
written request,  or is not declared  effective by the Commission on or prior to
the date that is 120 days after such request, or (ii) the registration statement
on Form SB-2 or such other form  described  in Section  10.1(iv) is not declared
effective on or before the sooner of the Effective  Date, or within

                                      -12-
<PAGE>

five days of receipt by the Company of a communication  from the Commission that
the registration  statement  described in Section 10.1(iv) will not be reviewed,
or (iii) any registration  statement described in Sections 10.1(i),  10.1(ii) or
10.1(iv)  is filed  and  declared  effective  but shall  thereafter  cease to be
effective  (without being  succeeded  immediately by an additional  registration
statement filed and declared  effective) for a period of time which shall exceed
30 days in the aggregate per year but not more than 20 consecutive calendar days
(defined  as a period  of 365  days  commencing  on the  date  the  Registration
Statement is declared  effective)  (each such event  referred to in clauses (i),
(ii) and (iii) of this Section 10.4 is referred to herein as a "Non-Registration
Event"),  then, for so long as such Non-Registration  Event shall continue,  the
Company  shall  pay  in  cash  as  Liquidated  Damages  to  each  holder  of any
Registrable  Securities  an amount  equal to two (2%)  percent per month or part
thereof  during  the  pendency  of  such  Non-Registration  Event,  of:  (i) the
principal of the Notes issued in connection with the Initial  Offering,  whether
or not converted;  and (ii) the principal  amount of Put Notes actually  issued,
whether or not  converted.  Payments to be made  pursuant to this  Section  10.4
shall be due and payable immediately upon demand in immediately available funds.
In the event a Mandatory  Redemption Payment is demanded from the Company by the
Holder  pursuant  to  Section  9.2 of  this  Subscription  Agreement,  then  the
Liquidated  Damages described in this Section 10.4 shall no longer accrue on the
portion of the Purchase Price underlying the Mandatory Redemption Payment,  from
and after the date the Holder  receives the  Mandatory  Redemption  Payment.  It
shall be deemed a Non-Registration Event to the extent that all the Common Stock
underlying  the   Registrable   Securities  is  not  included  in  an  effective
registration  statement  as of and after the  Effective  Date at the  Conversion
Prices in effect from and after the Effective Date.

                  10.5.  Expenses.  All  expenses  incurred  by the  Company  in
complying with Section 10, including,  without limitation,  all registration and
filing  fees,   printing  expenses,   fees  and  disbursements  of  counsel  and
independent  public  accountants for the Company,  fees and expenses  (including
reasonable  counsel  fees)  incurred in  connection  with  complying  with state
securities or "blue sky" laws,  fees of the National  Association  of Securities
Dealers, Inc., transfer taxes, fees of transfer agents and registrars, and costs
of insurance are called "Registration  Expenses". All underwriting discounts and
selling commissions applicable to the sale of Registrable Securities,  including
any fees and  disbursements  of any special  counsel to the  Seller,  are called
"Selling Expenses". The Seller shall pay the fees of its own additional counsel,
if any.

                           The  Company  will pay all  Registration  Expenses in
connection  with the  registration  statement  under  Section  10.  All  Selling
Expenses in connection with each  registration  statement under Section 10 shall
be borne by the Seller and may be apportioned among the Sellers in proportion to
the number of shares  sold by the Seller  relative  to the number of shares sold
under such registration statement or as all Sellers thereunder may agree.

                  10.6.    Indemnification and Contribution.
                           --------------------------------

                           (a) In the event of a registration of any Registrable
Securities  under the Act pursuant to Section 10, the Company will indemnify and
hold  harmless  the Seller,  each  officer of the Seller,  each  director of the
Seller,  each  underwriter of such  Registrable  Securities  thereunder and each
other person, if any, who controls such Seller or underwriter within the meaning
of the 1933 Act, against any losses,  claims,  damages or liabilities,  joint or
several,  to which the Seller,  or such  underwriter or  controlling  person may
become  subject  under the Act or  otherwise,  insofar as such  losses,  claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue  statement or alleged  untrue  statement  of any  material  fact
contained in any registration  statement under which such Registrable Securities
was registered under the Act pursuant to Section 10, any preliminary  prospectus
or final prospectus  contained therein,  or any amendment or supplement thereof,
or arise out of or are based  upon the  omission  or alleged  omission  to state
therein a material fact  required to be stated  therein or necessary to make the
statements

                                      -13-
<PAGE>

therein not misleading, and will reimburse the Seller, each such underwriter and
each such controlling person for any legal or other expenses reasonably incurred
by them in connection  with  investigating  or defending  any such loss,  claim,
damage,  liability or action;  provided,  however,  that the Company will not be
liable in any such case if and to the extent that any such loss,  claim,  damage
or  liability  arises  out of or is based  upon an untrue  statement  or alleged
untrue  statement  or omission or alleged  omission so made in  conformity  with
information   furnished  by  any  such  Seller,  the  underwriter  or  any  such
controlling  person  in  writing  specifically  for  use  in  such  registration
statement or prospectus.

                           (b)  In the  event  of a  registration  of any of the
Registrable  Securities  under the Act  pursuant  to Section 10, the Seller will
indemnify and hold harmless the Company,  and each person,  if any, who controls
the Company within the meaning of the Act, each officer of the Company who signs
the registration  statement,  each director of the Company, each underwriter and
each person who controls any underwriter  within the meaning of the Act, against
all losses,  claims,  damages or  liabilities,  joint or  several,  to which the
Company or such officer, director,  underwriter or controlling person may become
subject under the Act or otherwise,  insofar as such losses,  claims, damages or
liabilities  (or actions in respect  thereof) arise out of or are based upon any
untrue  statement or alleged untrue  statement of any material fact contained in
the  registration   statement  under  which  such  Registrable  Securities  were
registered  under the Act pursuant to Section 10, any preliminary  prospectus or
final prospectus  contained therein,  or any amendment or supplement thereof, or
arise out of or are based upon the omission or alleged omission to state therein
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements therein not misleading,  and will reimburse the Company and each such
officer,  director,  underwriter and  controlling  person for any legal or other
expenses  reasonably  incurred  by  them in  connection  with  investigating  or
defending any such loss, claim, damage, liability or action, provided,  however,
that the  Seller  will be liable  hereunder  in any such case if and only to the
extent that any such loss, claim,  damage or liability arises out of or is based
upon an untrue  statement  or alleged  untrue  statement  or omission or alleged
omission made in reliance upon and in conformity with information  pertaining to
such  Seller,  as such,  furnished  in  writing to the  Company  by such  Seller
specifically for use in such registration statement or prospectus, and provided,
further, however, that the liability of the Seller hereunder shall be limited to
the proportion of any such loss,  claim,  damage,  liability or expense which is
equal  to the  proportion  that the  public  offering  price of the  Registrable
Securities  sold by the Seller under such  registration  statement  bears to the
total public  offering price of all securities sold  thereunder,  but not in any
event to exceed  the gross  proceeds  received  by the  Seller  from the sale of
Registrable Securities covered by such registration statement.

                           (c) Promptly  after receipt by an  indemnified  party
hereunder of notice of the commencement of any action,  such  indemnified  party
shall,  if a claim in respect  thereof is to be made  against  the  indemnifying
party  hereunder,  notify the  indemnifying  party in writing  thereof,  but the
omission  so to notify  the  indemnifying  party  shall not  relieve it from any
liability  which it may have to such  indemnified  party  other  than under this
Section  10.6(c) and shall only relieve it from any liability  which it may have
to such  indemnified  party under this Section  10.6(c) if and to the extent the
indemnifying party is prejudiced by such omission. In case any such action shall
be brought  against any indemnified  party and it shall notify the  indemnifying
party of the commencement  thereof,  the indemnifying party shall be entitled to
participate  in and, to the extent it shall wish,  to assume and  undertake  the
defense thereof with counsel  satisfactory to such indemnified party, and, after
notice from the indemnifying  party to such indemnified party of its election so
to assume and undertake the defense thereof, the indemnifying party shall not be
liable to such  indemnified  party  under  this  Section  10.6(c)  for any legal
expenses  subsequently incurred by such indemnified party in connection with the
defense thereof other than reasonable costs of investigation and of liaison with
counsel so selected,  provided,  however,  that,  if the  defendants in any such
action include both the  indemnified  party and the  indemnifying  party and the
indemnified  party shall have reasonably  concluded that there may be reasonable
defenses  available  to it  which  are  different  from or  additional  to those
available to the indemnifying party or if the interests of the indemnified party
reasonably  may be deemed to conflict

                                      -14-
<PAGE>

with the interests of the indemnifying party, the indemnified parties shall have
the right to select one separate  counsel and to assume such legal  defenses and
otherwise  to  participate  in the defense of such action,  with the  reasonable
expenses and fees of such separate  counsel and other  expenses  related to such
participation to be reimbursed by the indemnifying party as incurred.

                           (d) In  order  to  provide  for  just  and  equitable
contribution  in the event of joint liability under the Act in any case in which
either (i) the Seller,  or any controlling  person of the Seller,  makes a claim
for  indemnification  pursuant  to  this  Section  10.6  but  it  is  judicially
determined  (by the entry of a final  judgment or decree by a court of competent
jurisdiction  and the  expiration  of time to appeal  or the  denial of the last
right of appeal)  that such  indemnification  may not be  enforced  in such case
notwithstanding  the fact that this Section 10.6 provides for indemnification in
such case, or (ii) contribution under the Act may be required on the part of the
Seller  or  controlling   person  of  the  Seller  in  circumstances  for  which
indemnification  is provided  under this Section  10.6;  then,  and in each such
case,  the Company  and the Seller  will  contribute  to the  aggregate  losses,
claims,  damages or liabilities to which they may be subject (after contribution
from others) in such  proportion so that the Seller is responsible  only for the
portion  represented  by the  percentage  that the public  offering price of its
securities  offered by the  registration  statement bears to the public offering
price  of all  securities  offered  by such  registration  statement,  provided,
however,  that,  in any  such  case,  (A) the  Seller  will not be  required  to
contribute  any  amount  in  excess  of the  public  offering  price of all such
securities  offered by it pursuant to such  registration  statement;  and (B) no
person or entity guilty of fraudulent  misrepresentation  (within the meaning of
Section  10(f) of the Act) will be entitled to  contribution  from any person or
entity who was not guilty of such fraudulent misrepresentation.

                  11.1.    Obligation To Purchase.
                           ----------------------

                           (a)  The  Subscriber  agrees  to  purchase  from  the
Company  convertible notes ("Put Notes") in up to the principal amount set forth
on the  signature  page  hereto  for  up to the  aggregate  amount  of Put  Note
principal designated on the signature page hereto (the "Put").  Collectively the
Put Notes,  and  Common  Stock  issuable  upon  conversion  of the Put Notes are
referred to as the "Put Securities".) The Put Note will be identical to the Note
except that the  Maturity  Date will be two years from each Put Closing Date (as
hereinafter  defined).  The  Holders of the Put  Securities  are granted all the
rights, undertakings,  remedies,  liquidated damages and indemnification granted
to the Subscriber in connection with the Note, including but not limited to, the
rights and procedures set forth in Section 9 hereof and the registration  rights
described in Section 10 hereof.

                           (b) The agreement to purchase the Put Notes for up to
one-third  (1/3) of the Put Note  Purchase  Price is contingent on the following
any, some or all of which may be waived by the Subscriber:

                                    (i) As of a Put Date and Put  Closing  Date,
the Company will be a full reporting company with the class of Shares registered
pursuant to Section 12(g) of the Securities Exchange Act of 1934.

                                    (ii)  No  material  adverse  change  in  the
Company's  business or business  prospects shall have occurred after the date of
the most recent financial  statements included in the Reports.  Material adverse
change  is  defined  as any  effect  on the  business,  operations,  properties,
prospects, or financial condition of the Company that is material and adverse to
the Company and its  subsidiaries and affiliates,  taken as a whole,  and/or any
condition, circumstance, or situation that would prohibit or otherwise

                                      -15-
<PAGE>

interfere  with the  ability of the Company to enter into and perform any of its
obligations  under this Agreement,  or any other agreement entered into or to be
entered into in connection herewith, in any material respect.

                                    (iii)  The  non-occurrence  (whether  or not
continuing) of an Event of Default as described in Article III of the Note.

                                    (iv)  The  execution  and  delivery  to  the
Subscriber of a certificate  signed by its chief executive officer  representing
the truth and  accuracy  of all the  Company's  representations  and  warranties
contained in this  Subscription  Agreement  as of the Put Date,  and Put Closing
Date and confirming the  undertakings  contained  herein,  and  representing the
satisfaction of all  contingencies  and conditions  required for the exercise of
the Put.

                                    (v) As of a Put  Date  and  through  the Put
Closing  Date,  the  Company's  Common  Stock is listed  on,  and the  Company's
compliance  with the listing  requirements  of the OTC  Bulletin  Board,  NASDAQ
SmallCap  Market,  American  Stock  Exchange,  New York Stock Exchange or NASDAQ
National Market System (any of the foregoing the "Principal Market").

                                    (vi)  The  Company's  not  having   received
notice  from the  Principal  Market or Pink  Sheets,  or any market on which the
Common  Stock is listed for  trading or  quotation,  that the  Company is not in
compliance with the  requirements  for continued  listing,  which notice has not
been  resolved  in  a  manner  affirming  the  Company's  compliance  with  such
requirements.

                                    (vii)  The  execution  by  the  Company  and
delivery to the Subscriber of all required  documents in relation to the Put set
forth in Section  11.2 below and such other  documents  which may be  reasonably
requested by the Subscriber.

                                    (viii) The  closing  bid price of the Common
Stock as reported by the Pink Sheets and/or the Principal Market for each of the
fifteen  (15)  trading  days  preceding a Put Date is not less than $.75 and the
reported daily trading volume for each trading day during the same period is not
less than 100,000 common shares.

                           (c) The  agreement to purchase Put Notes for up to an
additional one-third (1/3rd) of the Put Note Purchase Price is contingent on the
following, any, some or all of which may be waived by the Subscriber:

                                    (i) As of a Put Date and Put  Closing  Date,
the  satisfaction  of all the  conditions  set forth in Section  11.1(b)  above,
except as set forth below.

                                    (ii) As of a Put Date and Put Closing  Date,
the Common Shares  issuable upon conversion of all Put Notes which are issued or
issuable  are included in an  effective  registration  statement as described in
Section 10 hereof.

                                    (iii)   Modifying   Section    11.1(b)(viii)
hereof:  The average  closing  bid price of the Common  Stock as reported on the
Principal  Market for the fifteen (15) trading days  preceding a Put Date is not
less than $.75 and the reported  average daily  trading  volume for each trading
day during the same period is not less than 200,000 common shares.

                                      -16-
<PAGE>

                           (d) The  agreement to purchase Put Notes for up to an
additional one-third (1/3rd) of the Put Note Purchase Price is contingent on the
following, any, some or all of which may be waived by the Subscriber:

                                    (i) As of a Put Date and Put  Closing  Date,
the satisfaction of all the conditions set forth in Sections 11.1(b) and 11.1(c)
above, except as set forth below.

                                    (ii) Modifying  Sections  11.1(b)(viii)  and
11.1(c)(iii)  hereof:  Theaverage  closing  bid  price  of the  Common  Stock as
reported on the  Principal  Market for the twenty (20) trading days  preceding a
Put Date is not less than $.75 and the reported average daily trading volume for
the same period is not less than 300,000 common shares.

                  11.2.    Exercise of Put.
                           ---------------

                           (a) The  Company's  right to exercise  the Put amount
described in Section 11.1(b) commences on the date the Common Stock is initially
listed  on the  NASD  OTC  Bulletin  Board  and  expires  forty-five  (45)  days
thereafter.

                           (b) The  Company's  right to exercise  the Put amount
described  in  Sections  11.1(c) and 11.1(d)  hereof  commences  upon the actual
effective  date of the  registration  statement  described  in Section  10.1(iv)
hereof and expires 60 days and 90 days,  respectively,  thereafter.  The Company
may   exercise   the  Puts   described   in   Sections   11.1(c)   and   11.1(d)
contemporaneously.

                           (c) The Put may be exercised by the Company by giving
the Subscriber written notice of exercise ("Put Notice") not more often than one
time each fifteen  trading days during the Put Exercise Period in relation to up
to the maximum  principal  amount of Put Note that the  Subscriber has agreed to
purchase  subject  to the limits  described  in this  Agreement.  The date a Put
Notice is given is a Put Date.  Each Put Notice must be  accompanied  by (i) the
officer's  certificate  described  in Section  11.1(b)(iv)  above;  (ii) a legal
opinion  relating  to the  Put  Securities  in  form  reasonably  acceptable  to
Subscriber; and (iii) such other documents and certificates reasonably requested
by the Subscriber.

                           (d) Unless  otherwise  agreed to by the  Subscribers,
Put Notices must be given to all Subscribers in proportion to the amounts agreed
to be  purchased  by all  Subscribers  undertaking  to purchase Put Notes in the
Initial Offering.

                           (e)  Payment by the  Subscriber  in relation to a Put
Notice  relating to a Put must be made within  fourteen (14) business days after
receipt of a Put Notice and the items set forth in Section  11.2 above.  Payment
will be made against  delivery to the Subscriber or an escrow agent to be agreed
upon by the Company and Subscriber,  of the Put Securities,  and delivery to the
Finders of the Put Commissions relating to the Put being exercised.

                                      -17-
<PAGE>

                           (f)  Maximum Put  Exercise.  The Company may not give
the  Subscriber  a Put Notice in  connection  with that amount of Put Note which
could be  converted  as of the Put Date into a number of shares of Common  Stock
which would be in excess of the sum of (i) the number of shares of Common  Stock
beneficially  owned by the  Subscriber  and its affiliates on such Put Date, and
(ii) the number of shares of Common Stock  issuable  upon the  conversion of the
Put Note with respect to which the  determination  of this proviso is being made
on a Put Date, which would result in beneficial  ownership by the Subscriber and
its affiliates of more than 9.99% of the  outstanding  shares of Common Stock of
the Company on such Put Date. For the purposes of the proviso to the immediately
preceding sentence,  beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation
13d-3 thereunder.  Subject to the foregoing, the Subscriber shall not be limited
to  aggregate   conversions  of  only  9.99%.  The  Subscriber  may  revoke  the
restriction  described  in  this  paragraph  upon 75 days  prior  notice  to the
Company. The Subscriber shall have the right to determine which of the equity of
the Company deemed beneficially owned by the Subscriber shall be included in the
9.99%  described  above and which shall be  allocated to the excess above 9.99%.
The  aggregate  amount of all Put  Notices  to all  Subscribers  of the  Initial
Offering may not exceed $2,250,000.

                  11.3. Put Finders Fees.  The Finders  identified on Schedule B
hereto  shall  receive  on each Put  Closing  Date  aggregate  Finder's  Fees as
described in Section 6 hereof in connection  with the closing of each Put as set
forth  on  Schedule  B  hereto.  Put  Finder's  Fees  shall be  payable  only in
connection  with the Put Purchase Price  actually paid by a Subscriber.  The Put
Finder's Fees and reasonable  legal fees for counsel to the Subscriber  shall be
paid at each Put Closing. The minimum legal fee to be paid by the Company to one
counsel for the  Subscribers to the Initial  Offering is $2,500 per Put Closing.
Failure to timely  pay  Finder's  Fees,  or legal  fees in  connection  with the
Initial  Offering and Put shall be deemed an Event of Default under the Note and
a material breach of the Company's obligations hereunder, for which no notice is
required.

                  11.4  Assignment  of  Put.  Anything  to the  contrary  herein
notwithstanding,  the  Subscriber  may assign to another  party either before or
after exercise of the Put by the Company,  the Subscriber's  right to pay all or
some of the Put Purchase  Price and receive the  corresponding  Put  Securities.
Such assignment must be in writing. The assignment will be effective only if the
assignee consents in writing to be bound by all of the Subscriber's  obligations
to the Company in connection with such assignment. Upon an effective assignment,
the  assignee  will  succeed  to all  of  the  Subscriber's  rights  under  this
Subscription  Agreement,  and all  other  agreements  relating  to the  assigned
portion of the Put.

                  12.  (a)  Right of First  Refusal.  Until  180 days  after the
actual  effective  date  of the  Registration  Statement  described  in  Section
10.1(iv)  hereof,  the Subscriber shall be given not less than ten (10) business
days prior  written  notice of any  proposed  sale by the  Company of its common
stock or other securities or debt obligations except as disclosed in the Reports
or Other Written Information;  or stock or stock options granted to employees or
directors  of the  Company;  or equity  or debt  issued  in  connection  with an
acquisition  of a business  or assets by the  Company;  or the  issuance  by the
Company  of  stock in  connection  with the  establishment  of a joint  venture,
partnership or licensing  arrangement (these exceptions  hereinafter referred to
as the "Excepted Issuances"). The Subscriber shall have the right during the ten
(10)  business  days  following  the  notice to agree to  purchase  an amount of
Company Shares in the same proportion as being purchased in the Initial Offering
of those securities proposed to be issued and sold, in accordance with the terms
and  conditions  set forth in the  notice of sale.  In the event  such terms and
conditions are modified during the notice period,  the Subscriber shall be given
prompt notice of such

                                      -18-
<PAGE>

modification and shall have the right during the original notice period or for a
period of ten (10) business days following the notice of modification, whichever
is longer,  to  exercise  such  right.  In the event the right of first  refusal
described in this Section is exercised by the Subscriber and the Company thereby
receives net proceeds from such exercise, then commissions and fees will be paid
by the Company to the Finders in the same  amounts as specified in the notice of
sale.

                           (b) Offering  Restrictions.  Until 180 days after the
actual  effective  date  of the  registration  statement  described  in  Section
10.1(iv) hereof,  except for the Excepted  Issuances,  the Company agrees not to
issue any equity,  convertible  debt or other  securities  at a per common share
equivalent  price less than the closing ask price of the Company's  common stock
as of the last trading day prior to such issuance (or conversion or exercise, if
applicable) as reported on the Pink Sheets or by the Principal Market.

                  13.      Miscellaneous.
                           -------------

                           (a)  Notices.  All  notices  or other  communications
given or made hereunder shall be in writing and shall be personally delivered or
deemed delivered the first business day after being telecopied  (provided that a
copy is  delivered  by first class mail) to the party to receive the same at its
address set forth below or to such other address as either party shall hereafter
give to the other by notice duly made under this Section: (i) if to the Company,
to Wealthhound.com, Inc., 11 Broadway, Suite 260, New York, NY 10004, telecopier
number:  (212)  509-6186,  with a copy by telecopier only to: Parker Chapin LLP,
Attn:  Melvin Weinberg,  Esq., 405 Lexington  Avenue,  New York, New York 10174,
telecopier number: (212) 704-6288,  and (ii) if to the Subscriber,  to the name,
address and telecopy number set forth on the signature page hereto,  with a copy
by telecopier only to Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New
York, New York 10176,  telecopier number: (212) 697-3575. Any notice that may be
given pursuant to this Agreement,  or any document  delivered in connection with
the foregoing may be given by the Subscriber on the first business day after the
observance  dates in the  United  States of America  by  Orthodox  Jewry of Rosh
Hashanah,  Yom Kippur,  the first two days of the Feast of Tabernacles,  Shemini
Atzeret,  Simchat  Torah,  the  first two and  final  two days of  Passover  and
Pentecost, with such notice to be deemed given and effective, at the election of
the Subscriber on a holiday date that precedes such notice.  Any notice received
by the  Subscriber  on any of the  aforedescribed  holidays may be deemed by the
Subscriber  to be received and  effective as if such notice had been received on
the first business day after the holiday.

                           (b) Closing.  The  consummation  of the  transactions
contemplated herein shall take place at the offices of Grushko & Mittman,  P.C.,
551 Fifth Avenue, Suite 1601, New York, New York 10176, upon the satisfaction of
all conditions to Closing set forth in this Agreement. The closing date shall be
the date that subscriber funds  representing the net amount due the Company from
the Purchase Price are transmitted by wire transfer to the Company (the "Closing
Date"). The closing date for the Put shall be the date on which Subscriber funds
representing  the net  amount due the  Company  from the Put  Purchase  Price is
transmitted to or on behalf of the Company ("Put Closing Date").

                           (c)  Entire  Agreement;  Assignment.  This  Agreement
represents the entire  agreement  between the parties hereto with respect to the
subject  matter  hereof and may be amended  only by a writing  executed  by both
parties.  No right or obligation of either party shall be assigned by that party
without prior notice to and the written consent of the other party.

                           (d)  Execution.  This  Agreement  may be  executed by
facsimile  transmission,  and in  counterparts,  each of which will be deemed an
original.

                                      -19-
<PAGE>

                           (e) Law  Governing  this  Agreement.  This  Agreement
shall be governed by and construed in  accordance  with the laws of the State of
New York without  regard to principles of conflicts of laws.  Any action brought
by either party against the other  concerning the  transactions  contemplated by
this  Agreement  shall be brought only in the state courts of New York or in the
federal  courts  located  in the  state  of  New  York.  Both  parties  and  the
individuals  executing  this  Agreement  and other  agreements  on behalf of the
Company  agree to submit to the  jurisdiction  of such courts and waive trial by
jury. The prevailing party shall be entitled to recover from the other party its
reasonable  attorney's  fees and costs.  In the event that any provision of this
Agreement or any other agreement  delivered in connection herewith is invalid or
unenforceable  under any applicable  statute or rule of law, then such provision
shall be deemed  inoperative  to the extent that it may conflict  therewith  and
shall be deemed  modified to conform  with such statute or rule of law. Any such
provision  which  may prove  invalid  or  unenforceable  under any law shall not
affect the validity or enforceability of any other provision of any agreement.

                           (f) Specific  Enforcement,  Consent to  Jurisdiction.
The Company and Subscriber  acknowledge and agree that irreparable  damage would
occur  in the  event  that  any of the  provisions  of this  Agreement  were not
performed in accordance with their specific terms or were otherwise breached. It
is  accordingly  agreed that the parties  shall be entitled to an  injuction  or
injunctions  to prevent or cure breaches of the provisions of this Agreement and
to enforce  specifically the terms and provisions hereof or thereof,  this being
in addition  to any other  remedy to which any of them may be entitled by law or
equity.  Subject to Section  13(e)  hereof,  each of the Company and  Subscriber
hereby waives,  and agrees not to assert in any such suit, action or proceeding,
any claim that it is not personally  subject to the  jurisdiction of such court,
that the suit, action or proceeding is brought in an inconvenient  forum or that
the venue of the suit, action or proceeding is improper. Nothing in this Section
shall affect or limit any right to serve  process in any other manner  permitted
by law.

                           (g) Confidentiality.  The Company agrees that it will
not  disclose  publicly  or  privately  the  identity of the  Subscriber  unless
expressly  agreed to in writing by the Subscriber or only to the extent required
by law.

                           (h)  Automatic  Termination.   This  Agreement  shall
automatically terminate without any further action of either party hereto if the
Closing shall not have  occurred by the tenth (10th)  business day following the
date this Agreement is accepted by the Subscriber.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                      -20-
<PAGE>

         Please  acknowledge  your  acceptance  of  the  foregoing  Subscription
Agreement by signing and returning a copy to the undersigned  whereupon it shall
become a binding agreement between us.

                                            WEALTHHOUND.COM, INC.

                                            By:_________________________________

                                            Dated: July ____, 2000

Purchase Price:$
                -----------

PUT

Put Note Purchase Price (aggregate):$
                                     -----------

ACCEPTED: Dated as of July ____, 2000

_________________ - Subscriber
______________________________
______________________________
______________________________
______________________________

By:______________________________

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