Document:

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                                                                   Exhibit 10.41
                                                                   -------------

                             SUBSCRIPTION AGREEMENT
                             ----------------------

Dear Subscriber:

     You (the "Subscriber") hereby agree to purchase, and Kaire Holdings
Incorporated, a Delaware corporation (the "Company") hereby agrees to issue and
to sell to the Subscriber, Secured 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
included in the Securities (as hereinafter defined) 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, and the Common Stock issuable upon exercise of
the Warrants 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 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 Form 10-KSB for the year ended December 31, 2000 as filed
with the Securities and Exchange Commission (the "Commission") together with all
subsequently filed forms 10-QSB, and other publicly available filings made with
the Commission (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 in writing, 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 (the "1933 Act"), 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.  The information
set forth on the signature page hereto regarding the Subscriber is accurate.

               (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.

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          (d) Compliance with Securities Act.  The Subscriber understands and
              ------------------------------
agrees that the Securities have not been registered under the 1933 Act, by
reason of their issuance in a transaction that does not require registration
under the 1933 Act (based in part on the accuracy of the representations and
warranties of Subscriber contained herein), and that such Securities must be
held unless a subsequent disposition is registered under the 1933 Act or is
exempt from such registration.

          (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 UNDER SUCH SECURITIES ACT OR AN
          OPINION OF COUNSEL REASONABLY SATISFACTORY TO KAIRE HOLDINGS
          INCORPORATED 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. 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 OR AN OPINION OF COUNSEL REASONABLY
          SATISFACTORY TO KAIRE HOLDINGS INCORPORATED 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.
          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 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO KAIRE
          HOLDINGS INCORPORATED 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.

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          (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 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:

          (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 jurisdictions 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.

          (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 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 certificate 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 determination

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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, (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; and

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

          (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.  Except as
disclosed in the Reports or Other Written Information, 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.

          (i) Reporting Company.  The Company is a publicly-held company subject
              -----------------
to reporting obligations pursuant to Sections 15(d) and 13 of the Securities
Exchange Act of 1934, as amended (the "1934 Act") and has a class of common
shares registered pursuant to Section 12(g) of the 1934 Act.  The Company's
common stock is trading on the NASD OTC Bulletin Board ("Bulletin Board").
Pursuant to the provisions of the 1934 Act, the Company has filed all reports
and other materials required to be filed thereunder with the Securities and
Exchange Commission during the preceding twelve months except as set forth in
the Reports.

          (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.

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          (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, 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, except as may be
required by federal securities laws.

          (n) Defaults.  Neither the Company nor any of its subsidiaries is in
              --------
violation of its Certificate 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.  To the best of its knowledge after due
              ----------------------
inquiry with regulatory authorities, 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 or any applicable stockholder approval
provisions, including, without limitation, under the rules and regulations of
the Bulletin Board, as applicable, nor will the Company or any of its affiliates
or subsidiaries take any action or steps that would cause the offering of the
Securities to be integrated with other offerings.

          (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.

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          (q) Listing.  The Company's Common Stock is listed for trading on the
              -------
Bulletin Board 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 Bulletin Board or that the Common Stock does not meet all
requirements for the continuation of such listing.

          (r) No Undisclosed Liabilities.  The Company has no liabilities or
              --------------------------
obligations which are material, individually or in the aggregate, which are not
disclosed in the Reports and Other Written Information, other than those
incurred in the ordinary course of the Company's businesses since December 31,
2000 and which, individually or in the aggregate, would not reasonably be
expected to have a material adverse effect on the Company's financial condition.

          (s) No Undisclosed Events or Circumstances.  Since December 31, 2000,
              --------------------------------------
no event or circumstance has occurred or exists with respect to the Company or
its businesses, properties, prospects, operations or financial condition, that,
under applicable law, rule or regulation, requires public disclosure or
announcement prior to the date hereof by the Company but which has not been so
publicly announced or disclosed in the Reports.

          (t) Capitalization.  The authorized capital stock of the Company as of
              --------------
the date of this Agreement and the Closing Date is set forth on Schedule 2
hereto.  Except as set forth in the Reports and Other Written Information, there
are no options, warrants, or rights to subscribe to, securities, rights or
obligations convertible into or exchangeable for or giving any right to
subscribe for any shares of capital stock of the Company.  All of the
outstanding shares of Common Stock of the Company have been duly and validly
authorized and issued and are fully paid and nonassessable.

          (u) 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, 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 and disposes of such Securities pursuant to Rule 144(d) and/or Rule 144(k)
under the 1933 Act in the opinion of counsel reasonably satisfactory to the
Company, or (b) upon resale subject to an effective registration statement after
the Securities are registered under the 1933 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 all reasonably requested
written representations from the Subscriber and selling broker, if any.  If the
Company fails to remove any legend as required by this Section 4 (a "Legend
Removal Failure"), then beginning on the tenth (10th) day following the date
that the Subscriber has requested the removal of the legend and delivered all
items reasonably required to be delivered by the Subscriber, the Company
continues to fail to remove such legend, the Company shall pay to each
Subscriber or assignee holding shares subject to a Legend Removal Failure an

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amount equal to one percent (1%) of the Purchase Price of the shares subject to
a Legend Removal Failure per day that such failure continues.  If during any
twelve (12) month period, the Company fails to remove any legend as required by
this Section 4 for an aggregate of thirty (30) days, each Subscriber or assignee
holding Securities subject to a Legend Removal Failure may, at its option,
require the Company to purchase all or any portion of the Securities subject to
a Legend Removal Failure held by such Subscriber or assignee at a price per
share equal to 120% of the applicable Purchase Price.

     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 fees of
$7,500 for services rendered to Subscribers in connection with this Agreement
and the other Subscription Agreements for aggregate subscription amounts of up
to $300,000 (the "Initial Offering"). The Company will pay the escrow agent for
the Initial Offering a fee of $750. The Company will pay to the Fund Managers
identified on Schedule B hereto a cash fee in the amount of: ten percent (10%)
of the Purchase Price ("Fund Manager's Fee") and of the actual cash proceeds
received by the Company in connection with the exercise of the Warrants issued
in connection with the Initial Offering ("Warrant Exercise Compensation"). The
Fund Manager's Fee must be paid each Closing Date with respect to the Notes
issued on such date. The Warrant Exercise Compensation must be paid to the Fund
Managers identified on Schedule B hereto, within ten (10) days of receipt of the
Warrant exercise "Purchase Price" (as defined in the Warrant). The Fund
Manager'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.

          (b) The Company will also issue and deliver to the Warrant Recipients
identified on Schedule B hereto, Warrants in the amounts designated on Schedule
B hereto in connection with the Initial Offering. A form of Warrant is annexed
hereto as Exhibit D. The per share "Purchase Price" of Common Stock as defined
in the Warrant shall be equal to the lesser of (i) 110% of the lowest closing
price of the Common Stock as reported by Bloomberg Financial for the Pink
Sheets, the NASD OTC Bulletin Board, NASDAQ SmallCap Market, NASDAQ National
Market, American Stock Exchange, or New York Stock Exchange (each of the
foregoing the Principal Market"), or such other principal market or exchange
where the Common Stock is listed or traded for the ten (10) trading days
preceding but not including the Closing Date or (ii) 110% of the lowest closing
price of the Common Stock as reported by Bloomberg Financial on the Principal
Market for the ten trading days prior to but not including the date the Warrant
is exercised. The Warrants designated on Schedule B hereto must be delivered to
the Warrant Recipients on the Closing Date. Failure to timely deliver the
Warrant Exercise Compensation, the Warrants or Fund manager's Fee shall be an
Event of Default as defined in Article III of the Note.

          (c) The Fund Manager's Fee, legal fees and escrow agent's fee will be
paid to the Fund Managers and attorneys only when, as, and if a corresponding
subscription amount is released from escrow to the Company and out of the escrow
proceeds. All the representations, covenants, warranties, undertakings,
remedies, liquidated damages, indemnification, rights in Section 9 hereof, and
other rights but not including registration rights 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.

          (d) The Company on the one hand, and the Subscriber on the other hand,
agree to indemnify the other against and hold the other harmless from any and
all liabilities to any other persons claiming brokerage commissions or fund
manager's fees except as identified on Schedule B hereto on account

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of services purported to have been rendered on behalf of the indemnifying party
in connection with this Agreement or the transactions contemplated hereby and
arising out of such party's actions. Except as set forth on Schedule B hereto,
the Company represents that there are no other parties entitled to receive fees,
commissions, or similar payments in connection with the offering described in
the Subscription Agreement.

     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.

          (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 maintain the listing of its Common Stock
on a Principal Market, 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 from any Principal Market.

          (c) The Company shall notify the SEC, NASD and applicable state
authorities, in accordance with their requirements, if any, 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 actual 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 and
Warrant Recipients of all the Company Shares and Securities issuable by the
Company pursuant to this Agreement.  Until at least two (2) years after the
Warrants have been exercised, the Company will use its commercial best efforts
to continue the listing of the Common Stock on the Bulletin Board, NASDAQ
SmallCap Market, New York Stock Exchange, American Stock Exchange, or NASDAQ
National Market System 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.

                                      27
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          (e) The Company undertakes to use the proceeds of the Subscriber's
funds for the purposes set forth on Schedule 7(e) hereto.  Purchase Price may
not and will not be used to pay debt or non-trade obligations outstanding on or
after the Closing Date.

          (f) The Company undertakes to use its best efforts to acquire, within
three months of the Closing Date, at a commercially reasonable cost, a standard
officers and directors errors and omissions liability insurance policy covering
the transactions contemplated in this Agreement.

          (g) The Company undertakes to reserve pro rata on behalf of each
holder of a Note or Warrant, from its authorized but unissued Common Stock, at
all times that Notes or Warrants remain outstanding, a number of Common Shares
equal to not less than 200% of the amount of Common Shares necessary to allow
each such holder to be able to convert all such outstanding Notes, at the then
applicable Conversion Price and one Common Share for each Common Share issuable
upon exercise of the Warrants.

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

          (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 or any such person 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 other agreement delivered pursuant hereto; or (ii) after any
applicable notice and/or cure periods, any breach or default in performance by
the Company of any covenant or undertaking to be performed by the Company
hereunder, or any other agreement entered into by the Company and Subscribers
relating hereto.

          (b) Subscriber agrees to indemnify, hold harmless, reimburse and
defend the Company and each of the Company's officers and directors 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 or any such person which results, arises out of or is based upon (i) any
misrepresentation by Subscriber in this Agreement or in any Exhibits or
Schedules attached hereto, or other agreement delivered pursuant hereto; or (ii)
after any applicable notice and/or cure periods, 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 Shares are being sold
pursuant to an

                                      28
<PAGE>

effective registration statement covering the Shares to be sold 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 (as defined in the Note) to the Company via confirmed
telecopier transmission. 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 to the Subscriber
via express courier for receipt by such Subscriber within three (3) business
days after receipt by the Company of the Notice of Conversion (the "Delivery
Date"). A Note representing the balance of the Note not so converted will be
provided to the Subscriber, if requested by Subscriber. 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 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 is prohibited
          --------------------
from issuing Shares, or fails to timely deliver Shares on a Delivery Date, or
upon the occurrence of an Event of Default (as defined in the Note) or for any
reason other than pursuant to the limitations set forth in Section 9.3 hereof,
or upon the occurrence of an Event of Default as defined in Article III of the
Note, then at the Subscriber's election, the Company must pay to the Subscriber
ten (10) business days after request by the Subscriber or on the Delivery Date
(if requested by the Subscriber) a sum of money determined by multiplying up to
the outstanding principal amount of the Note designated by the Subscriber by
130%, together with accrued but unpaid interest

                                      29
<PAGE>

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 ten (10) 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 and Put 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 and Put Note with respect to
which the determination of this provision is being made on a Conversion Date,
which would result in beneficial ownership by the Subscriber and its affiliates
of more than 4.99% of the outstanding shares of Common Stock of the Company on
such Conversion Date.  For the purposes of the provision 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 4.99%.  The Subscriber may void the conversion
limitation described in this Section 9.3 upon an Event of Default under the
Note.  The Subscriber may allocate which of the equity of the Company deemed
beneficially owned by the Subscriber shall be included in the 4.99% amount
described above and which shall be allocated to the excess above 4.99%.

     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, or for any other
reason, 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 Subscriber 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 ten (10) days
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 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.

     9.6  Adjustments.   The Conversion Price and amount of Shares issuable
          ------------
upon conversion of the Notes and Put Notes shall be adjusted consistent with
customary anti-dilution adjustments.

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

                                      30
<PAGE>

          (i)    On one occasion, for a period commencing 61 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 Notes (the Common Stock issued or issuable upon
conversion or exercise of the Notes or issuable by virtue of ownership of the
Note, 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 20 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 foregoing
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.

          (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).

          (iv)   The Company shall file with the Commission within 30 days after
the Closing Date (the "Filing Date"), and use its reasonable commercial efforts
to cause to be declared effective Form SB-2 registration statement (or such
other form that it is eligible to use) 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 60 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

                                      31
<PAGE>

registration statement that is equal to 300% 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 (employing the Conversion Price which
would result in the greater number of Shares), assuming the conversion of 100%
of the Notes. The Registrable Securities shall be reserved and set aside
exclusively for the benefit of the Subscriber, and not issued, employed or
reserved for anyone other than the Subscriber. 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) except as set forth on Schedule 10.1 hereto, if any.

    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 ("Sellers") 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) twelve months after the latest Maturity Date of a Note;
(ii) thirty months after the Closing Date; or (iii) until such registration
statement has been effective for a period of not less than 270 days, 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;

          (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;

                                      32
<PAGE>

          (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 30 days after written
request by the Holder and not declared effective by the Commission within 90
days after such request (or the Filing Date and Effective Date, respectively, 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 30 days of such written request, or is not declared effective by the
Commission on or prior to the date that is 90 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 filed on or before the Filing Date or not declared effective on
or before the sooner of the Effective Date, or within five business days of
receipt by the Company of a written or oral 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, at the Subscriber's option, in cash or
stock at the applicable Conversion Price, as Liquidated Damages to each holder
of any Registrable Securities an amount equal to two percent (2%) per month or
part thereof during the pendency of such Non-Registration Event, of the
principal of the Notes issued in connection with the Initial Offering, whether
or not converted, then owned of record by such holder or issuable  as of or
subsequent to the occurrence of such Non-Registration Event.  Payments to be
made pursuant to this Section 10.4 shall be due and payable within five (5)
business days after 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

                                      33
<PAGE>

Redemption Payment. It shall also be deemed a Non-Registration Event if at any
time a Note is outstanding, there is less than 125% of the amount of Common
Shares necessary to allow full conversion of such Note at the then applicable
Conversion Price registered for unrestricted resale in an effective registration
statement.

    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 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 shall not be liable to the Seller to
the extent that any such damages arise out of or are based upon an untrue
statement or omission made in any preliminary prospectus if (i) the Seller
failed to send or deliver a copy of the final prospectus delivered by the
Company to the Seller with or prior to the delivery of written confirmation of
the sale by the Seller to the person asserting the claim from which such damages
arise, (ii) the final prospectus would have corrected such untrue statement or
alleged untrue statement or such omission or alleged omission, or (iii) 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, 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

                                      34
<PAGE>

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 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), except and only 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 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, (y) 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 (z) 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.

                                      35
<PAGE>

    10.7. Underwriter Liability.  Nothing contained in this Agreement or
          ---------------------
any document delivered herewith shall require or imply that the Subscriber is or
be an Underwriter as defined in the 1933 Act of 1934 Act, nor a "statutory
underwriter."  The Subscriber shall not be required to take any action or assume
any liability or obligation which would or could impose Underwriter or
"statutory underwriter" status or liability on the Subscriber.

    11.   Offering Restrictions.  Except (i) as disclosed in the Reports or
          ---------------------
Other Written Information prior to the date of this Subscription Agreement, and
(ii) stock or stock options granted to employees or directors of the Company
pursuant to a plan which has been approved by the shareholders of the Company
(these exceptions hereinafter referred to as the "Excepted Issuances"), the
Company will not issue any equity, convertible debt or other securities, prior
to the expiration of 180 days after the actual effective date of the
registration statement described in Section 10.1(iv) above.  The Excepted
Issuances (other than (i) above) may be issued during the above described time
periods provided such securities are not transferable until after a time period
equal to one year during which the registration statement described in Section
10.1(iv) above has been effective.

    12.   Security Interest.  As a condition of Closing, the Company will
          -----------------
deliver to the Subscriber Common Shares of the Company owned by one or more
shareholders of the Company, together with signature guaranteed stock powers.
Collectively, the foregoing stock is referred to as "Security Shares." The
Security Shares will be held by the Subscriber pursuant to a Security Agreement.
Subscriber will be granted a security interest in the Security Shares to be
memorialized in a Security Agreement.  The Company will also execute all such
documents reasonably necessary to memorialize and further protect the security
interest described above.

    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
Kaire Holdings Incorporated, 7348 Bellaire, North Hollywood, CA 91605, Attn:
Steven Westlund, telecopier number: (818) 255-4997, with a copy by telecopier
only to: Sichenzia, Ross, Friedman & Ference, LLP, 135 West 50th Street, 20th
Floor, New York, NY 10020, Attn: Greg Sichenzia, Esq., telecopier number: (212)
664-7329, 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
Daniel M. Laifer, Esq., 135 West 50th Street, Suite 1700, New York, New York
10020, telecopier number: (212) 541-4434.

          (b) Closing.  The consummation of the transactions contemplated herein
              -------
shall take place at the offices of Daniel M. Laifer, Esq., 135 West 50th Street,
Suite 1700, New York, New York 10020, 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").

          (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.

                                      36
<PAGE>

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

          (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 injunction 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]

                                      37
<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.

                               KAIRE HOLDINGS INCORPORATED
                               A Delaware Corporation

                               By:_________________________________
                                  Steven R. Westlund
                                  CEO and Director

                               Dated:  August __, 2001

ATTEST:

By:___________________________________

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

Purchase Price: $300,000.00
                -----------

ACCEPTED: Dated as of August __, 2001

THE KESHET FUND L.P. - Subscriber
A New York limited partnership
135 West 50th Street, Suite 1700
New York, NY 10020
Fax: 212-541-4434

By:______________________________

                                      38
<PAGE>

                      SCHEDULE B TO SUBSCRIPTION AGREEMENT
                      ------------------------------------

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
FUND MANAGER                                               INITIAL OFFERING - CASH FUND MANAGER'S FEES
---------------------------------------------------------------------------------------------------------------
<S>                                                        <C>
KESHET MANAGEMENT LIMITED                                  10% Fund Manager's Fees and Warrant Exercise
Ragnall House, 18 Peel Road                                Compensation payable in connection with investment
Douglas, Isle of Man                                       and warrant exercise by The Keshet Fund L.P. for
1M1 4L2, United Kingdom                                    which Keshet Management Limited is the Fund Manager.
Fax: 011-44-1624-661594
---------------------------------------------------------------------------------------------------------------

                                                  WARRANTS

---------------------------------------------------------------------------------------------------------------
WARRANT RECIPIENT                                          WARRANTS IN CONNECTION WITH INITIAL OFFERING
---------------------------------------------------------------------------------------------------------------
THE KESHET FUND L.P.                                       Warrants issuable in connection with investment by
A New York limited partnership                             The Keshet Fund, L.P.
135 West 50th Street, Suite 1700
New York, NY 10020
Fax: 212-541-4434
---------------------------------------------------------------------------------------------------------------
           TOTAL                                           1,500,000 Warrants
---------------------------------------------------------------------------------------------------------------
</TABLE>

                                      39<PAGE>

                                                                    EXHIBIT 10.1

                               AGREEMENT FOR THE
                               PURCHASE AND SALE
                                   OF ASSETS
                                by and between
                                Converge Global
                                   "seller"
                                      and
                                Mr. Eric Thiele
                                 (as "Buyer")
<PAGE>

                          AGREEMENT FOR THE PURCHASE
                              AND SALE OF ASSETS

         THIS AGREEMENT FOR THE PURCHASE AND SALE OF ASSETS ("Agreement"), dated
as of May 16, 2001, by and between Mr. Eric Thiele ("Buyer"), and Converge
Global, Inc., a Utah corporation ("Seller") with respect to the following:

                                R E C I T A L S

         A.       Seller is the operator of the business carried on under the
name Converge Global, (the "Business").

         B.       Buyer desires to purchase all of the assets of the Business
from Seller and Seller desires to sell the Business on the terms and subject to
the conditions of this Agreement.

         NOW THEREFORE, in consideration of the mutual covenants, agreements,
representations and warranties contained in this Agreement, and other good an
valuable consideration, the parties hereto agree as follows:

         1.       Assets to be Transferred.
                  ------------------------

                  a. On the Closing Date, Seller shall sell, assign and transfer
or cause to be sold, assigned or transferred, as the case may be, to Buyer the
assets of the Business as set forth on Schedule "A" (hereinafter collectively
referred to as the "Assets") free and clear of all liens, pledges, restrictions,
encumbrances and defects of any nature together with any and all interest of the
Seller in the name "www.liquidationbid.com", (the "Website"), and all other
names as listed on Schedule "A", or any substantially similar name, to Buyer.
Seller agrees that it will not use the name "liquidationbid.com" in any business
that is likely to cause confusion with the business operations of Buyer, on and
after the Closing Date.

                  b.       On or before Closing the Seller shall:

                           (i)      cause the Website to be "cloned" to the
                                    Buyer's server, it being understood that the
                                    Buyer is solely responsible for ensuring
                                    that it has put into place, prior to
                                    closing, all the necessary computer
                                    equipment and peripheral equipment to
                                    seamlessly commence the operation of the
                                    Website, forthwith after Closing. Buyer
                                    further acknowledges and agrees that it will
                                    not be entitled to assume control of the
                                    Website until Closing.

                           (ii)     route the Internet protocol address to the
                                    server of the Buyer to direct all Internet
                                    traffic for the domain name to the Buyer's
                                    server.

                           (iii)    transfer the domain name to the Buyer.

                  c.       Seller agrees to consult with Buyer in configuring
its server, prior to Closing.

         2.       Price and Terms.
                  ---------------

                  2.1      Asset Purchase Price. Buyer shall deliver to Seller,
                           ----------------------
as and for the purchase price of the Assets, consideration as follows (such
consideration being the "Asset Purchase Price"):

                           a.       Upon the execution of this Agreement, a
notes payable to Converge Global in the amount of $10,000 USD, payable within
120 days.

                  2.2      Transaction Taxes and Other Closing Costs. Any sales,
                           -----------------------------------------
value added, goods and services, use and any transfer taxes, and any transfer,
recording or similar fees and charges arising in connection with the transfer of
the Assets from Seller to Buyer and in connection with the transfer of the
Shares of the Buyer to the Seller, shall be paid by Buyer.

                  2.3      Commissions and Brokerage Fees. All brokerage fees
                           ------------------------------
and finder's fees shall be borne by the Party incurring such fees. Each party
hereby represents and warrants that no broker, agent or third party has been
involved in the

                                       1
<PAGE>

arrangement of this agreement and each agrees to hold the other harmless and
indemnify the other with respect to any claim for brokerage fees, commission
finder's fees, or otherwise.

         3.       Representations and Warranties by Seller
                  ----------------------------------------

         In addition to the promises of Seller contained in the Letter of Intent
between Buyer and Seller (the "Letter of Intent"), a true copy of which is
attached hereto as Schedule " ", Seller represents and warrants the following:

                  3.1      Statement of Site Operations. Seller has made
                           -----------------------------
available to Buyer copies of all records relevant to the operation of its site,
including daily activity logs as tracked by its independent service provider.

                  3.2     Title to Assets. Seller has the right to deliver, or
                          ---------------
caused to be delivered to the Buyer, good and merchantable title to the Assets,
free and clear of all liens, pledges, restrictions and encumbrances.

                  3.3     Contracts Attached hereto as Schedule "B" is a
                          ---------
Schedule of Contracts listing any contracts, understandings, commitments and
agreements to which Seller is a party, or is bound, with respect to the Website,
including,

                           a.       All oral or written contracts,
understandings or commitments, involving a present or future obligation to
deliver Website services;

                           b.       Any oral or written contract, understanding
or commitment which requires the consent of any party thereto to the
consummation of the transactions contemplated by the Agreement;

                           c.       Any other contract or commitment not listed
on other Schedules hereto which is or may be material to the business or
operation of Seller.

There has not been any default in any obligation to be performed by Seller under
any contract, commitment or agreement which default could adversely affect the
Website operations of the Seller, and Seller has not waived any right under any
such contract, commitment or agreement so as to adversely affect the Website
operations.

True and complete copies of any such written contracts and written summaries of
all such oral contracts will be furnished or made available to Buyer at least
seven days before the Closing Date for review on a confidential basis.

                  3.4      Trademarks, Licenses, etc. Attached hereto as
                           -------------------------
Schedule "C" is a Schedule of Trademarks listing all trademarks, trade names,
trademark licenses, service marks, patents, patent applications therefor,
franchises, licenses, copyrights authorizations, product registrations and other
assets of like kind (hereinafter "licenses and other rights"), any interest in
which is owned by or registered in the name of Seller with respect to the
Website. Seller is an authorized licensee of, and has the unrestricted right to
use, any such licenses and other rights now used in the conduct of the operation
of its Website, as set out in Schedule " " hereto; such licenses or other rights
are in full force and effect and have not been amended or modified. Seller has
performed all obligations required to be performed by it and is not in default
under any of the foregoing. No claims have been asserted against the Seller with
respect to any such licenses and other rights, and no proceedings have been
instituted or threatened which challenge the rights of Seller with respect to
any such licenses and other rights. Seller has not received any notice of
infringement of or conflicts with asserted rights of others with respect to any
such licenses and other rights arising therefrom. No action has been taken or
will be taken prior to Closing Date with respect to such licenses and other
rights without the prior written consent of Buyer other than those customarily
taken consistent with Seller's usual business practices as theretofore
conducted. True and complete copies of all such licenses and other rights will
be furnished or made available to Buyer at least seven days before the Closing
Date for review on a confidential basis.

                  3.5      Litigation The Seller in not involved in any
                           ----------
litigation and warrants that there is no actual or threatened litigation,
action, proceeding, claim, complaint, accusation, or governmental investigation
pending or threatened, nor is there basis for any against or affecting Seller or
Seller's assets. There is no outstanding order, judgment or award by any court,
arbitrator or governmental body against or affecting Seller's assets.

                  3.6      Taxes       The Seller is not obligated to collect or
                           -----
remit taxes with respect to any operations associated with the Website.

                                       2
<PAGE>

                  3.7      Employees.    The Seller does not now and has never
                           ---------
had any employees.

                  3.8      Indebtedness  and  Guarantees.  The Seller is not
                           -----------------------------
indebted to any person whatsoever and has never guaranteed the obligations of
any third party.

                  3.9      Records. Seller maintains its records in accordance
with standard Website protocol and in sufficient detail to reflect accurately
and fairly the transactions on its Website.

                  3.10     No Violation. There are no consents which will have
                           ------------
to be obtained prior to Closing Date, save and except as specifically set out in
this Agreement. The execution and delivery of this Agreement does not, and the
consummation of the transactions contemplated hereby will not:

                           a.       Violate, conflict with or cause any default
under or acceleration of (or give any party any right to declare any default or
acceleration upon notice or passage of time or both), in whole or in part, any
charter, certificate of incorporation, bylaw, mortgage, lien, deed of trust,
indenture, lease, agreement, instrument, order, injunction, decrees, judgment or
any other restriction of any kind or character to which Seller is a party or by
which it is bound;

                           b.       Result in the creation of any security
interest, lien, encumbrance, adverse claim, proscription or restriction on the
Assets;

                           c.       To the Seller's best knowledge and belief,
violate any statute or any rule or regulation of any governmental body; or

                           d.       To the Seller's best knowledge and belief,
permit any governmental body to impose any restrictions or limitations of any
nature on Seller or its activities.

                  3.11     Consents. To the Seller's best knowledge and belief,
                           --------
no consent, approval, authorization or order of or filing with any court, any
governmental body, or any insurer of or other party to agreements, licenses,
rights and other obligations of Seller is required for the execution and
delivery of this Agreement and the consummation of the transaction contemplated
in this Agreement, save and except as specifically set out in this Agreement.

                  3.12     Due Authorization and Validity of Agreement. Seller
                           -------------------------------------------
has all requisite power and authority to enter into this Agreement, to sell and
convey the Assets and to carry out the other provisions and conditions hereof.
This Agreement has been duly authorized, executed and delivered by Seller and
constitutes a valid and legally binding agreement of Seller enforceable in
accordance with its terms.

                  3.13     Interim Operations. The business of Seller has been
                           ------------------
conducted only in the ordinary and usual course consistent with past practice.
There have not been any material adverse changes in the financial condition, and
operations of the Website, nor has any condition or state of facts arisen which
has not been disclosed to Buyer which could reasonably be expected to materially
and adversely affect the operations of the Website.

                  3.14     Full Disclosure. No representation or warranty of
                           ---------------
Seller made in this Agreement, nor any written statement furnished to Buyer
pursuant hereto, or in connection with the transactions contemplated hereby,
heretofore furnished Buyer by Seller, contains or will contain any untrue
statement of a material fact which affects the Assets of Seller, or Seller's
title to the Assets or omits or will omit to state a material fact necessary to
make the statements or facts contained herein or therein not misleading. Seller
has not withheld and will not withhold from Buyer knowledge of any events,
conditions or facts which may affect the Assets or Seller's title to the Assets.

         4.       Representations, Warranties and Acknowledgement by Buyer.
                  --------------------------------------------------------

         The Buyer represents and warrants the following:

                  4.1      Organization  and Good  Standing.  Buyer is duly
                           --------------------------------
organized and existing and in good standing under the laws of the State of Utah.

                                       3
<PAGE>

                  4.2      Authority. The execution of this Agreement by Buyer,
                           ---------
its delivery to Seller and the performance of its terms have been fully
authorized by the Board of Directors of Buyer, and no further corporate action
will be necessary on its part to make this Agreement valid and binding upon
Buyer in accordance with its terms. Neither the execution nor delivery of this
Agreement nor its performance will result in a violation or breach of any term
or provision of, nor constitute a default under, its Articles of Incorporation
or By-Laws, or any other law, regulation or restriction of any kind or character
to which Buyer is a party, or by which it is bound,

                  4.3      Full Disclosure. No representation or warranty of
                           ---------------
Buyer made in this Agreement, nor any written statement furnished to Seller
pursuant hereto, or in connection with the transactions contemplated hereby,
heretofore furnished to Seller by Buyer, contains or will contain any untrue
statement of a material fact which affects the business or financial condition
of Buyer, or omits or will omit to state a material fact necessary to make the
statements or facts contained herein or therein not misleading.

                  4.4      Shares. The Buyer represents and warrants with
                           ------
respect to the Shares, as follows:

                           a.       The attached Schedule "F" discloses fully
the number of authorized and issued shares outstanding and all rights,
restrictions, (including but limited to restrictions on transfer) limitations
and obligations which apply directly, or indirectly to the Shares which form
part of the consideration hereunder.

                           b.       That it will not effect a dilution of the
Seller's shareholdings in the Buyer either by a division or consolidation of
shares, by the issuance of additional shares which would rank in priority or
pari passu with the Shares, as long as the Seller is the holder of the Shares.

                           c.       On closing the Buyer shall authorize the
release of the shares to be delivered under Paragraph 2.1(a) and shall deliver
to Seller shares certificates for the said Shares along with the shares which
form part of the consideration under Paragraph 2.1(b) which shares shall be
fully paid and non-assessable and shall set out the restrictions on transfer,
and the rights with respect to re-purchase those Shares in favour of the Buyer,
including the notice and payment provisions with respect thereto, which shall be
subject to the reasonable approval of the Seller.

                           d.       Buyer shall, forthwith upon closing,
register the Shares in the name of the Seller or as the Seller may in writing
direct on the records of the corporation.

                           e.       That it has the right to issue the shares to
the Seller, as part of the consideration hereunder and to deliver the
certificates as hereinbefore described.

                           f.       That there is no outstanding or threatened
judgment, claim, litigation, proceeding, complaint, accusation or governmental
investigation pending, which would have a detrimental effect on the operations
of the Seller, the value of its assets, or the value of the Shares.

                           g.       That the right to repurchase the shares as
set out in Schedule F hereto shall lapse and be of no further force or effect,
after the expiry of nine months from the Date of Closing.

         5.       Agreements by Seller.
                  --------------------

                  5.1      Notices and Approvals.
                           ---------------------

                           a.       Seller agrees to obtain all consents,
approvals, permits and authorizations which may be necessary in connection with
the transfer of Assets pursuant to this Agreement including the releases of any
liens and encumbrances attached to the Assets on the date hereof and the Closing
Date.

                           b.       Notwithstanding the above, Buyer shall be
responsible for the cost of transferring and registering the website into its
name and paying any fee to Network Solutions with respect to the transfer.

                                       4
<PAGE>

                  5.2      Further Instruments.      Seller will, at the request
                           -------------------
of Buyer, execute and deliver to Buyer all such further instruments,
assignments, assurances and documents as Buyer may reasonably request in
connection with the carrying out of this Agreement.

                  5.3      Sale of Business. Seller is not negotiating with any
                           ----------------
other party for the sale of the Assets and has not entered into any
understanding about a sale, whether binding or not, and unless its negotiations
with Buyer terminate earlier, it will not negotiate for the sale of or offer to
sell its Assets to any other party without Buyer's consent until the date
established as the Closing date.

         6.       Conditions Precedent to the Obligation of Buyer to Close.
                  --------------------------------------------------------

         In addition to the fulfillment of all obligations of Seller contained
in the Purchase Agreement, the obligation of Buyer to close shall be subject to
the following conditions precedent:

                  6.1      Compliance with Obligations. Fulfillment by Seller of
                           ----------------------------
its covenants, obligations and agreements as set forth in this Agreement.

                  6.2      Correctness of Representations. The representations
                           -------------------------------
of Seller contained in this Agreement shall be accurate in all material respects
on the date when made and shall also be accurate on the Closing Date to the same
extent as if made on such date. Seller shall deliver to Buyer a certificate
dated the Closing Date and executed by such officers of Seller as Buyer shall
reasonably require stating that said representations are accurate in all
material respects as of the Closing Date and that all covenants, agreement and
conditions required by this Agreement to be preformed by Seller prior to Closing
Date have been performed on or prior to the Closing Date.

                  6.3      Consents Seller shall have delivered to buyer the
                           --------
written consent of any licensor of Seller or other party whose written consent
is required pursuant to any agreement or license held by the Seller, to validly
transfer the Assets contemplated by this Agreement to the Buyer, or, in lieu of
such consent, adequate assurances satisfactory to the Buyer, acting reasonably,
that buyer may succeed, in quiet enjoyment to Seller's licenses, and such other
consents, permits and approvals as buyer shall require to validly transfer the
Assets.

                  6.4      No Injunction On the Closing Date, there shall be no
                           -------------
effective, injunction, writ, preliminary restraining order or any order of any
nature issued by a court of competent jurisdiction, directing that the
transaction provided for herein not be consummated as herein provided.

         7.       Conditions Precedent to the Obligation of Seller to Close.
                  ---------------------------------------------------------

                  In addition to the fulfillment of all obligations of Buyer
contained in the Purchase Agreement, the obligation of Seller to close shall be
subject to the following conditions precedent:

                  7.1      Authorization. Buyer shall represent to Seller that
                           -------------
the execution of this Agreement and the consummation of the transactions
contemplated hereby are duly authorized by Buyer.

                  7.2      Correctness of Representations. The representations
                           -------------------------------
and warranties of Buyer contained in this Agreement shall be accurate in all
material respects on the Closing Date to the same extent as if made on such
date, and Buyer shall represent to Seller that said representations and
warranties are accurate in all respects as of the Closing Date and that all
conditions precedent to Closing to be performed by Buyer shall have been
performed.

                  7.3      Declaration. The delivery by the Buyer of a sworn
                           ------------
Declaration, completed by an authorized signing officer of the Buyer, shall in
the absence of evidence to the contrary shall be accepted by the Seller as
conclusive with respect to the matters set out therein.

                                       5
<PAGE>

         8.       Other Agreements.
                  ----------------

                  8.1 Confidentiality. Each party hereto will hold and will
                      ---------------
cause its consultants and advisors to hold in strict confidence, unless
compelled to disclose by judicial or administrative process or, in the opinion
of its counsel, by other requirements of law, all documents and information
concerning the other party furnished it by such other party or its
representatives in connection with the transactions contemplated by this
Agreement (except to the extent that such information can be shown to have been
(i) previously known by the party to which it was furnished, (ii) in the public
domain through no fault of such party, or (iii) later lawfully acquired from
other sources by the party to which it was furnished, and each party will not
release or disclose such information to any other person, except its auditors,
attorneys, financial advisors, bankers and other consultants and advisors in
connection with this Agreement. Each party shall be deemed to have satisfied its
obligation to hold confidential information concerning or supplied by the other
party if it exercises the same care as it takes to preserve confidentiality for
its own similar information. In the event of termination of this Agreement, each
party shall use its best efforts to return to the other party all documents and
copies thereof received from the other party, including all archival records,
that contain information subject to the confidentiality requirements of this
Section in whatever media it exists and to destroy any such information which
can not otherwise be returned. In the event the Website has been "cloned" onto
the Buyer's server, forthwith upon termination, the Buyer shall destroy all
record of the Website from its equipment, without creating any archival or other
copies thereof.

                  8.2 Noncompetition. The Founder, Converge Global, covenants
                      --------------
and agrees that, for a period of five years following Buyer's acquisition of the
business of Seller, he will not individually, or as a member, employee,
director, stockholder (except of not more that one percent (1%) of the
outstanding stock of any company purchased for investment purposes only, and
except for ownership of shares in a publicly traded company of which he is not a
founder, officer or director), or investor, of any other corporation, directly
or indirectly, own, manage, operate, join, control or work for or permit the use
of their name by, or be connected in any manner with, any business activity
within the State of California which is competitive with the operation of the
Website which is the same or similar to the Website of the Seller as previously
conducted, with respect to the Assets being purchased, and as said business may
evolve in the ordinary course between the date of this Agreement and Closing
whether said business is conducted by Buyer or any successor or assign.

                           a.       Separate Covenants. It is intended that the
                                    -------------------
covenant contained in paragraph 8.4 above, shall be deemed to be a series of
separate covenants, one for each county of the state of California as defined
above included within such covenant. Except for geographic coverage, each such
separate covenant contained shall be deemed identical in terms with the covenant
contained in said paragraph. If in any judicial proceeding, a court should
refuse to enforce all of the separate covenants deemed included in paragraph 8.4
because, taken together, they cover too extensive a geographic area, it is
intended that those of such covenants which, if eliminated, would permit the
remaining separate covenants to be enforced in such proceeding, shall, for the
purpose of such proceeding, be deemed eliminated for the provisions hereof.

                           b.       Injunctive  Relief.  In the event of a
                                    ------------------
breach or threatened breach of Section 8.4 of this Agreement, the non-breaching
Party shall be entitled to an injunction restraining such breach, without the
requirement of posting bond; but nothing here shall be construed as prohibiting
the non-breaching Party from pursuing any other remedy available to it as a
result of such breach or threatened breach.

         9.       Closing Date and Termination.
                  ----------------------------

                  9.1 Closing. The consummation of the transactions contemplated
                      -------
by this Agreement (the "Closing") shall take place on May 18, 2001, (the
"Closing Date").

                  9.2 Termination. This Agreement may be terminated at any time
                      -----------
after acceptance (i) by mutual consent of all parties or (ii) by either Buyer or
Seller at any time in the event of a material breach by the other of its
obligations under the terms of this Agreement, which remains uncured for thirty
days after notice in writing of such breach. In the event any such breach is
alleged within less that thirty days of the Closing Date, the party which
allegedly has breached the provisions of this Agreement shall have until closing
or a minimum of ten (10) days, whichever is longer, to cure such breach after
receiving written notice thereof, and, if necessary, the Closing Date shall be
extended accordingly.

                  9.3 Return of Confidential Information. In the event of
                      ----------------------------------
termination of this Agreement, each party shall use its best efforts to return
to the other party all documents and copies thereof received from the other
party that contain information

                                       6
<PAGE>

subject to the confidentiality requirements of this Section in whatever media it
exists and to destroy any such information which can not otherwise be returned.
In the event the Website has been "cloned" onto the Buyer's server, forthwith
upon termination, the Buyer shall destroy all record of the Website from its
equipment, without creating any archival or other copies thereof.

         10. Survival of Representations and Agreements. The representations and
             ------------------------------------------
agreements made herein are true and binding as of the date hereof and shall
continue in full force and effect on and after the Closing Date notwithstanding
any investigations which may have been made by any of the parties prior thereto.

         11.      Indemnification.
                  ---------------

                  11.1 Indemnification. Buyer and Seller shall indemnify and
                       ----------------
hold harmless each other from any liability, damage, deficiency, loss, cost or
expense, including attorney fees and any costs of investigation (being hereafter
referred to as "Costs"), arising from or attributable to any breach of any
representation, warranty or agreement made by either party herein or in any
certificate or Declaration delivered at the Closing with respect thereto.

         12.      Expenses. Each party hereto shall bear its or his own expenses
                  --------
incurred pursuant to this Agreement except as otherwise specifically set forth
herein.

         13.      Entire  Agreement.  This Agreement, together with the
                  -----------------
Schedules referred to herein which are incorporated herein by this reference,
and the agreements referred to herein, shall constitute the entire agreement
between the parties hereto with respect to the transactions contemplated hereby.

         14.      Construction.     The parties hereto agree that this Agreement
                  ------------
shall be construed in accordance with the laws of the State of California.

         15.      Invalid Provisions. If any provision hereof is held to be
                  ------------------
illegal, invalid or unenforceable under present or future laws effective during
the term hereof, such provision shall be fully severable. This Agreement shall
be construed and enforced as if such illegal, invalid or unenforceable provision
had never comprised a part hereof, and the remaining provisions hereof shall
remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance herefrom. Furthermore, in
lieu of such illegal, invalid or unenforceable provision there shall be added
automatically by the Company as a part hereof a provision which is legal, valid
and enforceable, and which is as similar in terms to such illegal, invalid or
unenforceable provision as may be possible, provided both parties, acting
reasonably, agree with such provision.

         16.      Number and Gender of Words. When the context so requires in
                  --------------------------
this Agreement, words of gender shall include either or both of the other
genders and the singular number shall include the plural.

         17.      Assignment. This Agreement shall be binding upon the parties
                  ----------
hereto, their successors and assigns, and prior to the Closing Date shall not be
assignable without the express written consent of all parties hereto.

         18.      Amendments. This Agreement may be amended only by a written
                  ----------
agreement executed by all of the parties hereto.

         19.      Notices. Any notice, request, instruction, or other document
                  -------
required by the terms of this Agreement, or deemed by any of the Parties hereto
to be desirable, to be given to any other Party hereto shall be in writing and
shall be given by facsimile, personal delivery, overnight delivery, or mailed by
registered or certified mail, postage prepaid, with return receipt requested, to
the following addresses:

                           To:   "Seller"     Converge Global
                                              Attn: Imran Husain
                                              233 Wilshire Boulevard, Suite 930
                                              Santa Monica, CA 90401
                                              Facsimile: (310) 656-3055

                                       7
<PAGE>

                   To:      "Buyer"          Mr. Eric Thiele
                                             1155 N. La Cienega, #908
                                             Los Angeles, CA 90069

         The persons and addresses set forth above may be changed from time to
time by a notice sent as aforesaid. If notice is given by facsimile, personal
delivery, or overnight delivery in accordance with the provisions of this
Section, said notice shall be conclusively deemed given at the time of such
delivery. If notice is given by mail in accordance with the provisions of this
Section, such notice shall be conclusively deemed given seven business days
after deposit thereof in the United States mail.

         All notices, requests, consents and other communications hereunder
shall be in writing and shall be delivered in person or by registered or
certified mail, return receipt requested, postage and fees prepaid, first class
mail.

         20.   Authority. Each party executing this Agreement warrants his or
               ---------
her authority to execute this Agreement.

         21.   Counterparts.   This Agreement may be executed in several
               ------------
counterparts and it shall not be necessary for each party to execute each of
such counterparts, but when all of the parties have executed and delivered one
of such counterparts, the counterparts, when taken together, shall be deemed to
constitute one and the same instrument, enforceable against each party in
accordance with its terms.

         22.   Facsimile Signatures.     The parties hereto agree that this
               --------------------
Agreement may be executed by facsimile signatures and such signatures shall be
deemed originals. The parties further agree that within ten days following the
execution of this Agreement, they shall exchange original signature pages.

         23.   Acceptance.     This Agreement, if not accepted by both parties
               ----------
as evidenced by its execution by an authorized signing officer, on or before the
day of April, 1999 shall be null and void and of no further force or effect.

               IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be executed on the day and year first above written.

"SELLER"                                    "BUYER"

Converge Global, Inc.                       Mr. Eric Thiele

   /s/ Imran Husain                           /s/ Eric Thiele
---------------------------------           ---------------------------
By:      Imran Husain                         Eric Thiele
Its:     President

                                       8
<PAGE>

                                   Schedule A
                                 List of Assets

1.       Assets to be Transferred.
         ------------------------

         On the Closing Date, Seller shall sell, assign and transfer or cause to
be sold, assigned or transferred to the Buyer at Buyer's cost if any the
following specified assets (hereinafter collectively referred to as the
"Assets") free and clear of all liens, pledges, restrictions, encumbrances and
defects of any nature, such sale and transfer to be evidenced by appropriate
documents of sale, transfer and conveyance, satisfactory to Buyer in form and
substance.

         1.1      All existing content and HTML files.

         1.2      All graphics and logos.

         1.3      All agreements with content providers (news, financial
                  reports, ad banners, sports, etc.)
                  -verbal
                  -contractual
                  -e-mail confirmations, associated user I.D.'s and passwords

         1.4      All scripts (Perl, Java, VB, etc.)

         1.5      Domain Name Transfer (www.liquidationbid.com) to new
                  registrant Eric Thile.

         1.6      Any trademarks related to liquidationbid.com.

2.0      All branding associated with liquidationbid.com.

2.1      Any trademarks related to liquidationbid.com

                                       9
<PAGE>

                                   Schedule B
                              Schedule of Contracts

                                       10
<PAGE>

                                   Schedule C
                             Schedule of Trademarks

                               Liquidationbid.com

                                       11
<PAGE>

                                   Schedule D
                                    Consents

                                Network Solutions

                                       12
<PAGE>

                                   Schedule E
                                    Founders

                              Converge Global, Inc.

                                       13
<PAGE>

                                   Schedule F
                               Share Restrictions

   TO BE PROVIDED BY THE BUYER SUBJECT TO REVIEW AND APPROVAL OF THE SELLER.

                                       14

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