Document:

<PAGE>

                                                                     Exhibit 4.2

                       INFORETECH WIRELESS TECHNOLOGY INC.

                          2001 STOCK COMPENSATION PLAN

         1.       Purpose. The purpose of the Plan is to provide stock in lieu
of compensation to those directors, officers, employees and consultants of the
Company and its subsidiaries whose services are essential to the continued
growth and success of the Company's business. To accomplish such purposes, the
Plan provides that the Company may issue shares as compensation for past,
present or future services.

         2.       Definitions. For purposes of this Plan:

                  (a) "Agreement" means the written agreement between the
Company and the eligible person

                  (b) "Board" means the Board of Directors of the Company.

                  (c) "Change in Capitalization" means any increase, reduction,
or change or exchange of Shares for a different number or kind of shares or
other securities of the Company by reason of a reclassification,
recapitalization, merger, consolidation, reorganization, issuance of warrants or
rights, stock dividend, stock split or reverse stock split, combination or
exchange of shares, repurchase of shares, change in corporate structure or
otherwise.

                  (d) "Code" means the Internal Revenue Code of 1986, as
amended.

                  (e) "Committee" means the Compensation Committee of the Board
or such other committee appointed by the Board to administer the Plan and to
perform the functions set forth herein, or if no committee has been established,
the full Board.

                  (f) "Company" means Inforetech Wireless Technology Inc., a
Nevada corporation.

                  (g) "Eligible person" means any director, officer, employee or
consultant of the Company or any subsidiary of the Company designated by the
Committee as eligible to receive shares subject to the conditions set forth
herein.

                  (h) "Exchange Act" means the Securities Exchange Act of 1934,
as amended.

                  (i) "Fair Market Value" means the fair market value of the
Shares as determined by the Committee in its sole discretion; provided, however,
<PAGE>

that (A) if the Shares are admitted to trading on a national securities
exchange, Fair Market Value on any date shall be the last sale price reported
for the Shares on such exchange on such date or on the last date preceding such
date on which a sale was reported, (B) if the Shares are admitted to quotation
on the National Association of Securities Dealers Automated Quotation System
("NASDAQ") or other comparable quotation system and have been designated as a
National Market System ("NMS") security, Fair Market Value on any date shall be
the last sale price reported for the Shares on such system on such date or on
the last day preceding such date on which a sale was reported, (C) if the Shares
are admitted to quotation on NASDAQ and have not been designated a NMS security,
Fair Market Value on any date shall be the average of the highest bid and lowest
asked prices of the Shares on such system on such date, or (D) if the Shares are
traded on the Over the Counter Market, the average of the closing bid and asked
prices on such Market on such date

                  (j) "Parent" means any corporation in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the
Company owns stock possessing 50% or more of the total combined voting power of
all classes of stock of one of the other corporations in such chain.

                  (k) "Plan" means the Inforetech Wireless Technology Inc. 2001
Stock Compensation Plan, as amended from time to time.

                  (l) "Securities Act" means the Securities Act of 1933, as
amended.

                  (m) "Shares" means shares of the Class A common stock of the
Company (including any new, additional or different stock or securities
resulting from a Change in Capitalization).

                  (n) "Subsidiary" means any entity that is directly or
indirectly controlled by the Company.
<PAGE>

         3.       Administration.

                  (a) The Plan shall be administered by the Committee which
shall hold meetings at such times as may be necessary for the proper
administration of the Plan. A majority of the Committee shall constitute a
quorum and a majority of a quorum may authorize any action. Any decision reduced
to writing and signed by a majority of the members of the Committee shall be
fully effective as if it had been made at a meeting duly held. Neither the
Committee as a whole or any member thereof shall be personally liable for any
action, determination or interpretation made in good faith with respect to the
Plan, and all members of the Committee shall be fully indemnified by the Company
with respect to any such action, determination or interpretation. The Company
shall pay all expenses incurred in the administration of the Plan.

                  (b) Subject to the express terms and conditions set forth
herein, the Committee shall have the power from time to time:

                      i.    to determine those Eligible persons to whom shares
                  shall be issued under the Plan and the number of shares to be
                  issued and to prescribe the terms and conditions (which need
                  not be identical) of each share issuance, including the
                  purchase price per Share.

                      ii.   to construe and interpret the Plan and the shares
                  issued hereunder and to establish, amend and revoke rules and
                  regulations for the administration of the Plan, including, but
                  not limited to, correcting any defect or supplying any
                  omission, or reconciling any inconsistency in the Plan or in
                  any Agreement, in the manner and to the extent it shall deem
                  necessary or advisable to make the Plan fully effective, and
                  all decisions and determinations by the Committee in the
                  exercise of this power shall be final and binding upon the
                  Company and the recipient, as the case may be:

                      iii.  to determine the duration and purposes for leaves of
                  absence which may be granted to an employee without
                  constituting a termination of employment or service for
                  purposes of the Plan; and

                      iv.   generally, to exercise such powers and to perform
                  such acts as are deemed necessary or advisable to promote the
                  best interests of the Company with respect to the Plan.

         4.       Stock Subject to Plan.

                  (a) The maximum number of Shares that may be issued or
transferred pursuant to the Plan is 6,500,000 (or the number and kind of share
of
<PAGE>

stock or other securities which are substituted for those Shares or to which
those Shares are adjusted upon a Change in Capitalization), and the Company
shall reserve for the purposes of the Plan, out of its authorized but unissued
Shares or out of Shares held in the Company's treasury, or partly out of each,
such number of Shares as shall be determined by the Board.

         5.       Eligibility. Subject to the provisions of the Plan, the
Committee shall have full and final authority to select those Eligible Employees
or consultants who will receive shares.

         6.       Shares. The Committee may grant shares in accordance with the
Plan, the terms and conditions of which shall be set forth in an Agreement.

         7.       Adjustment Upon Changes in Capitalization. In the event of a
Change in Capitalization, the Committee shall conclusively determine the
appropriate adjustments, if any, to the maximum number and class of shares of
stock with respect to which shares may be issued under the Plan.

         8.       Termination and Amendment of the Plan. The Plan shall
terminate on the day preceding the first anniversary of its effective date, and
no Shares may be issued thereafter.

         9.       Non-Exclusivity of the Plan. The adoption of the Plan by the
Board shall not be construed as amending, modifying or rescinding any previously
approved incentive arrangement or as creating any limitations on the power of
the Board to adopt such other incentive arrangements as it may deem desirable.

         10.      Limitation of Liability. As illustrative of the limitations of
liability of the Company, but not intended to be exhaustive thereof, nothing in
the Plan shall be construed to:

                  (a) give any person any right to be issued shares other than
at the sole discretion of the Committee;

                  (b) give any person any rights whatsoever with respect to
Shares except a specifically provided in the Plan;

                  (c) limit in any way the right of the Company to terminate the
employment of any person at any time; or

                  (d) be evidence of any agreement or understanding, expressed
or implied, that the Company will employ any person in any particular position,
at any particular rate of compensation or for any particular period of time.

         11.      Regulations and Other Approvals; Governing Law.
<PAGE>

                  (a) This Plan and the rights of all persons claiming hereunder
shall be construed and determined in accordance with the laws of the State of
Nevada without giving effect to the choice of law principles thereof.

                  (b) The obligation of the Company to sell or deliver Shares
with respect to shares under the Plan shall be subject to all applicable laws,
rules and regulations, including all applicable federal and state securities
laws, and the obtaining of all such approvals by governmental agencies as may be
deemed necessary or appropriate by the Committee.

         12.      Miscellaneous.

                  (a) Withholding of Taxes. The Company shall have the right to
deduct from any payment of cash to an Eligible person an amount equal to the
federal, state and local income taxes and other amounts required by law to be
withheld with respect to any sale of securities under this plan.

                  (b) Designation of Beneficiary. Each eligible person may, with
the consent of the Committee, designate a person or persons to receive in event
of such person's death, any amount of Shares payable pursuant thereto, to which
such person would then be entitled.

         13.      Effective Date. The effective date of the Plan is October
25th, 2001.<PAGE>

                                                                     Exhibit 4.3

             Unaudited Pro Forma Consolidated Financial Statements

Inforetech Wireless Technology Inc.

As at and for the six month period ended June 30, 2001
<PAGE>

<TABLE>
<CAPTION>
Inforetech Wireless Technology Inc.
Pro Forma Financial Statements
Consolidated Balance Sheet (unaudited)
As at June 30, 2001                                                        June 30,          Pro forma                  Pro forma
                                                                            2001            adjustments               consolidated
                                                                              $                  $           Note           $
                                                                     ---------------------------------------------------------------
<S>                                                                         <C>               <C>            <C>        <C>
 ASSETS
 Current
 Cash                                                                           16,653           (16,653)    [a]                --
 Accounts receivable, net of allowance for doubtful accounts                     9,611                                       9,611
 Investment tax credit receivable                                               26,878                                      26,878
 Inventories                                                                   281,686                                     281,686
 Prepaid expenses and deposits                                                  54,634                                      54,634
 Deferred finance costs                                                        965,808          (875,000)    [b]
                                                                                                 (57,928)    [c]            32,880
 Current portion of ProShot assets to be disposed of                         2,386,161        (2,123,580)    [a]           262,581
------------------------------------------------------------------------------------------------------------------------------------
 Total Current Assets                                                        3,741,431                                     668,270

 Property and equipment, net                                                   263,330                                     263,330
 Long term portion of ProShot assets to be disposed of                       4,959,201        (4,959,201)    [a]                --
------------------------------------------------------------------------------------------------------------------------------------
                                                                             8,963,962                                     931,600
====================================================================================================================================

 LIABILITIES AND STOCKHOLDERS' DEFICIENCY
 Current
 Bank indebtedness                                                              32,494                                      32,494
 Accounts payable and accrued liabilities                                    5,050,811          (431,188)    [a]
                                                                                                  40,000     [d]         4,659,623
 Current portion of lease obligations under capital leases                       6,171                                       6,171
 Convertible loans                                                             100,000                                     100,000
 Convertible loans, related parties                                            285,254                                     285,254
 Promissory notes payable, related parties                                   1,460,810         1,000,000     [e]
                                                                                                 118,000     [f]         2,578,810
 Current portion of ProShot liabilities                                      6,670,183        (6,431,803)    [a]           238,380
------------------------------------------------------------------------------------------------------------------------------------
 Total current liabilities                                                  13,605,723                                   7,900,732

 Long-Term Debt
 Long term obligations under capital leases                                     21,457                                      21,457
 8% Series A convertible note - due August 4, 2003                             737,644                                     737,644
 8% Convertible debenture - due August 4, 2005                                 684,044                                     684,044
 Loan - due February 28, 2006                                                1,099,680                                   1,099,680
 Other notes payable, net of discount                                        1,257,834                                   1,257,834
 Other long-term liabilities                                                   366,464          (145,586)    [a]           220,878
 Long term portion of ProShot liabilities                                    3,198,058        (3,198,058)    [a]                --
------------------------------------------------------------------------------------------------------------------------------------
 Total Liabilities                                                          20,970,904                                  11,922,269
====================================================================================================================================

 Stockholders' deficiency
 Class A common stock, $.001 par value
      Authorized: 100,000,000 Class A, voting, participating shares;
      Issued:  23,113,821                                                       22,921                                      22,921
 Class B common stock, $.001 par value
      Authorized: 10,000,000 Class B, voting, convertible,
      non-participating shares;
      Issued:  100,000                                                             100                                         100
 Class A stock to be issued                                                      1,080               800     [g]             1,880
 Additional paid-in capital                                                 16,676,127           207,200     [g]        16,883,327
 Accumulated deficit                                                       (28,707,170)          808,273     [h]       (27,898,897)
------------------------------------------------------------------------------------------------------------------------------------
 Total stockholders' deficiency                                            (12,006,942)                                (10,990,669)
------------------------------------------------------------------------------------------------------------------------------------
                                                                             8,963,962                                     931,600
====================================================================================================================================

 Class A stock:
 Issued                                                                     23,113,821                                  23,113,821
 To be issued                                                                2,265,047           800,000     [g]         3,065,047

------------------------------------------------------------------------------------------------------------------------------------
 Issued and outstanding June 30, 2001                                       25,378,868                                  26,178,868
====================================================================================================================================
</TABLE>
<PAGE>

See accompanying notes

<TABLE>
<CAPTION>
Consolidated statements of loss and comprehensive loss (unaudited) For the six
months ended June 30, 2001

                                                                    For the six months ended    Pro forma             Pro forma
                                                                         June 30, 2001         adjustments          consolidated

                                                                               $                    $        Note         $

<S>                                                                      <C>                  <C>            <C>     <C>
Revenue on ProShot products                                                1,685,079           (1,685,079)   [i]             --

Cost of revenue of ProShot products, including depreciation and
amortization                                                                (915,461)             915,461    [i]             --

---------------------------------------------------------------------------------------------------------------------------------
     Gross profit                                                            769,618                                         --
---------------------------------------------------------------------------------------------------------------------------------

 Expenses
 Administration                                                            1,688,019             (912,784)   [i]        775,235
 Depreciation and amortization                                               928,981             (112,855)   [i]
                                                                                                 (770,034)   [j]         46,092
 Asset impairment                                                         10,029,367          (10,029,367)   [k]             --
 Sales and marketing                                                         801,763             (372,511)   [i]        429,252
 Research and development                                                    823,322             (215,615)   [i]        607,707
---------------------------------------------------------------------------------------------------------------------------------
                                                                         (14,271,452)                                (1,858,286)

 Finance costs                                                               994,238             (175,000)   [l]
                                                                                                  (72,236)   [m]
                                                                                                  (93,000)   [n]
                                                                                                  (46,400)   [o]        607,602
 Interest expense                                                            756,677             (648,106)   [i]        108,571

---------------------------------------------------------------------------------------------------------------------------------
 Net loss and comprehensive loss                                         (15,252,749)                                (2,574,459)
=================================================================================================================================

 Pro forma loss per common share - basic and diluted                           (0.90)                                     (0.15)

 Pro forma weighted average number of common
      shares outstanding                                                  16,896,756                                 16,896,756
</TABLE>

 See accompanying notes
<PAGE>

1.   BASIS OF PRESENTATION

The accompanying pro forma consolidated financial statements have been prepared
in connection with a Form S-8 to be filed with the Securities and Exchange
Commission to give effect to the foreclosure on the majority of the assets of a
Company subsidiary, ProShot Golf, Inc. ["ProShot"]. The pro forma consolidated
financial statements have been prepared by management and are derived from the
unaudited consolidated balance sheet of Inforetech Wireless Technology Inc.
("Inforetech") as at June 30, 2001 and the unaudited consolidated statement of
loss and comprehensive loss of Inforetech for the six month period then ended.

The pro forma consolidated balance sheet as at June 30, 2001 gives effect to the
foreclosure on the majority of the assets of ProShot (see Note 3) as if it had
occurred on June 30, 2001. The pro forma consolidated statement of loss and
comprehensive loss for the six months ended June 30, 2001 assumes the
foreclosure occurred on January 12, 2001, which is the date ProShot was acquired
by the Company.

The pro forma consolidated financial statements are not necessarily indicative
of the results that actually would have been achieved if the transactions
reflected therein had been completed on the dates indicated or the results which
may be obtained in the future.

The pro forma consolidated financial statements should be read in conjunction
with the description of the foreclosure in the Form S-8, the unaudited
consolidated financial statements of Inforetech as at June 30, 2001, the audited
consolidated financial statements of Inforetech as at December 31, 2000 and the
audited financial statements of ProShot as at December 31, 2000, including notes
thereto.

2.   ACCOUNTING POLICIES

The accounting policies used in the preparation of the pro forma consolidated
financial statements are those disclosed in Inforetech's audited financial
statements for the year ended December 31, 2000.

3.   FORECLOSURE ON PROSHOT ASSETS

Agreement by Company to assist in the foreclosure of certain of its assets

On September 21, 2001, after receiving notices of defaults from a group of
Inforetech shareholders [the "Guarantors"] in regard to a finance agreement
dated April 24, 2001, and the Company being unable to cure those defaults, the
Company and one of its directors signed an agreement with the Guarantors stating
that the Company would use its best efforts to assist in the foreclosure of its,
ProShot Golf, Inc. ("ProShot") subsidiary's assets by its bank [First Bank and
Trust [the "Bank"]], so that the Bank debt and ultimately the obligation of the
Guarantors, to the Bank, in respect of their guarantee of ProShot's Bank debt,
might be reduced.

The principal terms of the agreement are:

o    The Company will assist ProShot's Bank in foreclosing on ProShot's assets.
     Any proceeds from the foreclosure will go to reduce ProShot's debt to the
     Bank and hence the Guarantors obligation to the Bank.

o    The Guarantors may advance funds on their behalf and on behalf of the Bank
     for the specific purposes of protecting the value of the ProShot assets
     including funds to meet ProShot employee payroll. After August 31, 2001,
     the Company shall have no responsibility for advancing any further payroll
     and related expenses to ProShot or ProShot's employees.

o    Upon the consummation of the above requirements, the Guarantors agree to
     release the Company and one of its directors from certain financial
     obligations and to convert such obligations to stock in the Company. The
     obligations to be released and converted are the obligation of the Company
     to indemnify the Guarantors for any
<PAGE>

     losses or payments under the loan agreement with the Bank up to $1,000,000
     and the obligation of a Company director from his personal guarantee of
     one-sixth of the total of Letters of Credit outstanding in favor of The
     Associates and Trimble Navigation, Ltd. currently totaling $708,000. Upon
     such releases in the total amount of $1,118,000, the Company shall issue to
     the Guarantors, or their designees, 11,180,000 shares of Common Stock. This
     term was subsequently amended in an October 16, 2001 agreement - see below.

o    The Guarantors agree to use their best efforts to obtain, from the Bank, a
     release of ProShot from its obligations to the Bank upon the transfer of
     title of all of ProShot's assets to the Bank.

o    The Guarantors agree to use their best efforts to cause any party acquiring
     the former assets of ProShot to issue a license to the Company for use of
     the GAT patent (a current asset of ProShot) during the life of the GAT
     patent, on terms and conditions no less favorable than any other party to
     which such a license is issued. To the date of filing the Company has not
     requested such a license.

Amendments to Agreement by Company to assist in the foreclosure of certain of
its assets

On October 16, 2001, the September 21, 2001 asset transfer agreement was amended
by a further agreement between the Guarantors, the Company and one of its
directors. The principal terms of the amendment are:

o    On or before December 31, 2001, the Company shall pay to the Guarantors
     ProShot employee delinquent payroll taxes of $62,626 through August 31,
     2001, plus any interest and penalties yet to be calculated. Any ProShot
     sales or property taxes paid by the Company after the date of the agreement
     will go to reduce the total amount owed by the Company in respect of
     delinquent payroll taxes.

o    The terms of conversion of the $1,000,000 portion of ProShot debt
     guaranteed by the Company and $118,000 guaranteed personally by one of the
     Company's directors, are amended such that the above terms regarding
     payroll taxes must also be met before the guarantees can be released and
     the conversion of the Guarantee amount to Company stock shall now be at 80%
     of the five day average closing price for the five days immediately
     preceding the date of release.

Asset impairment resulting from foreclosure of ProShot's assets

As a result of the impending asset foreclosure discussed above, ProShot's assets
no longer represented a future economic benefit to the Company from an
operational perspective. The assets represented a future economic benefit only
to the extent that might reduce ProShot's liabilities. This change in use
resulted in impairment in asset value and a corresponding write-down of
$10,029,367 being recorded in the Company's June 30, 2001 financial statements.
Also, in the Company's June 30, 2001 financial statements ProShot's assets were
classified as assets to be disposed of in order to accurately reflect the
Company's intentions.

Collateral Management Agreement and a Conditional Release Agreement

On October 16, 2001, the Company signed a Collateral Management Agreement and a
Conditional Release Agreement with the Bank and ProShot Investors, LLC, a
company established by the Guarantors. The purpose of these agreements was to
allow ProShot Investors, LLC to manage all of ProShot's assets until such time
as the Bank foreclosed on such assets. Under the terms of the Conditional
Release Agreement, upon completion of the Bank foreclosure, and provided that
the Guarantors deliver an amount of funds, not specified in the agreement, to
the Bank to support their guarantee of the Bank debt, the Bank will release
ProShot from its obligations under the $4.5m line of credit and associated
interest charges secured by these assets.
<PAGE>

Foreclosure on ProShot's assets and release of ProShot's Bank debt

On October 31, 2001, the Bank exercised its right to foreclose on and dispose of
all of ProShot's assets [the "Foreclosed Assets"] with the exception of two golf
course lease receivables and related equipment, which were assigned to Charles
Aalfs [the "Aalfs Leases"], a creditor of ProShot, in a Collateral Assignment
dated January 20, 1998. Both golf courses are delinquent in their payments under
these leases and ProShot is delinquent in its payments to Charles Aalfs under
the Collateral Assignment. Charles Aalfs has commenced legal action against
ProShot so that any future payments, under the Aalfs Leases, might be paid
directly to him. The Company will not be defending this action. The carrying
value of the Aalfs Leases as at June 30, 2001 was $262,581. The carrying value
of the Aalfs Leases at September 30, 2001 of $280,620 was fully written off as a
bad debt on that date as a result of the foreclosure and the legal action
brought by Charles Aalfs.

On October 31, 2001, the Foreclosed Assets were purchased from the Bank by
ProShot Investors, LLC. The purchase was completed by the delivery of $450,000
to the Bank by the Guarantors which also served to support the Guarantors'
obligation for the full amount of the Bank's loan to ProShot. Since, the Bank's
conditions under the Conditional Release Agreement have now been met, ProShot's
debt under the Business Loan Agreement unconditionally became the debt of the
Guarantors. The Guarantors paid off the remainder of the Bank loan on November
2, 2001. On November 7, 2001, the Bank provided a letter to ProShot stating that
it's obligation under the fully drawn down $4.5m line of credit had been
unconditionally released.

The June 30, 2001 balances have been used for the purpose of explaining which
assets and liabilities are to be transferred. As at June 30, 2001, the
Foreclosed Assets together with the Aalfs Leases, had a carrying value before
impairment of $7,362,015. The liabilities of ProShot as at June 30, 2001
included a $4.5 million line of credit with the Bank, $2,170,183 of current
lease obligations and $3,198,058 of long term lease obligations related to the
net investment in lease receivables. These liabilities plus interest owing on
debts transferred to ProShot Investors, LLC in aggregate of $201,398, with the
exception of current leases obligations of $238,380 relating to the Aalfs
Leases, are attached to the Foreclosed Assets and as a result now the
liabilities of ProShot Investors, LLC who acquired the Foreclosed Assets on
October 31, 2001. Also, as a result of discussions with ProShot Investors, LLC,
$431,188 of accounts payable and accrued liabilities, as at June 30, 2001,
relating largely to future maintenance and upgrade of course equipment and
royalty and property tax liabilities was transferred to ProShot Investors, LLC.
The remaining ProShot liabilities will not be transferred to ProShot Investors,
LLC. As at June 30, 2001, these amounts included accounts payable of $1,760,387,
promissory notes payable of $549,456, lease obligations pertaining to the Aalfs
Leases of $238,380 and other long-term liabilities of $220,878. The Company has
not yet decided what course of action it will take to settle the remaining
ProShot liabilities.

Release of escrow shares

At the time of the ProShot acquisition the Company placed 960,000 Class A Common
Shares of Inforetech into escrow. These escrow shares were to be released to the
Guarantors, over a period of time, should the Company not be able to fully
release the Guarantors from their Guarantees of various ProShot debts, including
the $4.5m Bank line of credit, in place at the time of acquisition. As a result
of the foreclosure these escrow shares are now to be released to the Guarantors
in full.

Lay-off of all ProShot staff

On September 30, 2001, with the impending foreclosure on ProShot's assets, the
Company formulated a plan to terminate all of ProShot's employees. The employees
were terminated on October 15, 2001. One of these employees had an employment
contract which included six months of severance pay. The estimated cost of
severance of $40,000 has been accrued as at September 30, 2001.

On October 16, 2001, the majority of ProShot's employees were recruited by
ProShot Investors, LLC.
<PAGE>

4.   PRO FORMA ASSUMPTIONS AND ADJUSTMENTS

The following adjustments have been made to reflect the transactions described
in note 3.

     [a]  To transfer certain ProShot assets and liabilities to ProShot
          Investors, LLC and the Guarantors [see note 3 for details].

     [b]  To write off $875,000 of deferred finance costs that relate to the
          Bank line of credit which, subsequent to the foreclosure on ProShot's
          assets, is no longer a liability of the Company.

     [c]  To write off $57,928 of deferred finance costs relating to a cost of
          goods financing arrangement which, subsequent to the acquisition of
          ProShot's assets by ProShot Investors, LLC is no longer a liability of
          the Company.

     [d]  Accrual for the cost of severance of a certain ProShot employee
          arising upon their termination which was a consequence of the
          foreclosure on ProShot's assets.

     [e]  In the April 24, 2001 finance agreement with the Guarantors, the
          Company indemnified the Guarantors for up to $1m of their guarantee to
          ProShot's Bank in regard to the $4.5m line of credit. The $1m became
          payable by the Company, to the Guarantors, when the Guarantors paid
          off the $4.5m Bank line of credit on November 2, 2001. It should be
          noted that, as provided in the October 16, 2001 amended asset transfer
          agreement, if the Company is able to meet the requirement to pay the
          Guarantors $62,626 of delinquent ProShot payroll taxes plus any
          interest and penalties thereon before December 31, 2001. The Company
          intends to repay the $1m through the issuance of discounted common
          shares in the Company [see note 3], but, due to the contingency raised
          by the Company's potential inability to make the payment, has
          presented this item as debt in these pro forma consolidated financial
          statements.

     [f]  In the April 24, 2001 finance agreement with the Guarantors, the
          Company indemnified the Guarantors for up to $118,000 of their
          guarantee of certain ProShot debt in the principal amount of $708,000.
          The $118,000 indemnification was personally guaranteed by a Company
          director. The $118,000 became payable by the Company, to the
          Guarantors, upon the asset foreclosure on October 31, 2001. It should
          be noted that, as provided in the October 16, 2001 amended asset
          transfer agreement, if the Company is able to meet the requirement to
          pay the Guarantors $62,626 of delinquent ProShot payroll taxes plus
          any interest and penalties thereon before December 31, 2001. The
          Company intends to repay the $118,000 through the issuance of
          discounted common shares in the Company [see note 3], but, due to the
          contingency raised by the Company's potential inability to make the
          payment, has presented this item as debt in these pro forma
          consolidated financial statements.

<PAGE>

4.   PRO FORMA ASSUMPTIONS AND ADJUSTMENTS (cont'd.)

     [g]  Release of 800,000 escrow shares to the Guarantors based on a June 30,
          2001 trading price of $.26, less, their nominal value of $800. This
          brings the total escrow shares to be released to the Guarantors to
          960,000.

     [h]  The net result of the pro forma consolidated balance sheet adjustments
          is a gain of $808,273. This is recorded as a credit to or a reduction
          in accumulated deficit.

     [i]  To remove all revenues and expenses generated and incurred directly by
          ProShot.

     [j]  To remove the amortization charge for goodwill arising on the
          acquisition of ProShot.

     [k]  Asset impairment relates to ProShot's assets and the unamortized
          portion of goodwill arising upon the acquisition of ProShot.

     [l]  To remove $175,000 of finance costs related to warrants to purchase
          common stock of the Company issued to the Guarantors to compensate
          them for their continued guarantee of ProShot's Bank loan. This cost
          would not have been incurred had the asset transfer and release of the
          Bank loan occurred on January 1, 2001.

     [m]  To remove $72,236 of finance costs related to warrants to purchase
          common stock of the Company issued to the Guarantors to compensate for
          their continued guarantee of ProShot's cost of goods line of credit.
          This cost would not have been incurred had the asset transfer and the
          cost of goods financing attached thereto, occurred on January 1, 2001.

     [n]  To remove $93,000 of finance costs which was the fair market value of
          300,000 shares of common stock of the Company issued to the Guarantors
          to compensate them, under the April 24, 2001 finance agreement, for
          the Company's late payment of interest on ProShot's Bank loan. This
          cost would not have been incurred had the asset transfer and release
          of the Bank loan occurred on January 1, 2001.

     [o]  To remove $46,400 of finance costs related to escrow shares of the
          Company releasable to the Guarantors to compensate them for their
          continued guarantee of ProShot's Bank loan. This cost would not have
          been incurred had asset transfer and release of the Bank loan occurred
          on January 1, 2001.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]