Document:

Exhibit 10.39

                            INDEMNIFICATION AGREEMENT

         THIS INDEMNIFICATION  AGREEMENT (the "Agreement") between TSET, Inc., a
Nevada corporation (the "Company"),  and Richard F. Tusing,  (the "Indemnitee"),
is effective as of May 1, 2001.

         In consideration  of the  Indemnitee's  past and future services and to
benefit the Company, the Company and the Indemnitee agree as follows:

         1.  DEFINITIONS.

             a) "CLAIM" means any threatened,  pending or completed action, suit
or proceeding,  liability,  claim, damage,  judgment, cost or expense (including
attorneys' fees,  expenses,  bonds and costs of investigation) or any inquiry or
investigation  that the  Indemnitee  in good  faith  believes  might lead to the
institution  of any such action,  suit or proceeding,  whether civil,  criminal,
administrative, investigative or other.

             b)  "INDEPENDENT  COUNSEL" means a law firm or member of a law firm
that has not  within  the last five (5) years  represented  the  Company  or the
Indemnitee in a matter  material to either or in a matter  material to any other
party to the action,  suit or proceeding  giving rise to the Indemnitee's  claim
for indemnification under this Agreement.  Independent Counsel shall not include
any member of a law firm who would have a conflict of interest under  applicable
standards of professional  conduct in representing the Company or the Indemnitee
in an  action  hereunder.  Such  Independent  Counsel  shall  be  chosen  by the
Indemnitee  and approved by the Board of Directors of the Company (the "BOARD OF
DIRECTORS") which approval shall not be unreasonably withheld.

             c)  "REVIEWING  PARTY"  means  (1) the  Board of  Directors  of the
Company by a majority  vote of a quorum  consisting  of  directors  who were not
parties  to the  action,  suit,  or  proceeding,  or (2) if such a quorum is not

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obtainable,  or,  even if  obtainable  a quorum of  disinterested  directors  so
directs, by Independent Counsel in a written opinion, or (3) by the stockholders
of the Company.

         2. INDEMNITY. Subject to Sections 8 and 9 hereof, the Company agrees to
indemnify and hold the Indemnitee  harmless,  to the fullest extent permitted by
law,  including,  but not  limited  to,  the  extent  and in the  manner  herein
provided,  from and  against  any and all  Claims  of any type  arising  from or
related to his past or future acts or  omissions as a director or officer of the
Company and/or its subsidiaries (which term shall mean any entities of which the
Company owns directly, or through any such subsidiaries,  at least fifty percent
(50%) of the voting stock  (hereinafter  referred to as  "SUBSIDIARIES")).  This
indemnity  shall  extend to all  matters  except to the  extent  applicable  law
prohibits indemnification.

         3. JUDGMENTS. Subject to Sections 8 and 9 hereof, the Company agrees to
promptly  pay on behalf of the  Indemnitee  any and all  judgments  against  the
Indemnitee  for damages  arising from acts or omissions as a director or officer
of the Company and/or its Subsidiaries  when any such judgment becomes final and
subject to execution against the Indemnitee,  to the full extent allowable under
applicable law.

         4. APPEAL BONDS.  Subject to Sections 8 and 9 hereof, the Company shall
pay the cost of, provide collateral for and cause to be timely and duly filed in
court,  appellate bonds to prevent  execution of judgment against the Indemnitee
during the pendency of appeals as the Indemnitee may reasonably initiate, to the
full extent allowable under applicable law.

         5. COST OF  DEFENSE.  Subject to  Sections 8 and 9 hereof,  the Company
shall promptly pay the reasonable cost of the defense of the Indemnitee  against
any and all Claims against him arising from the Indemnitee's past or future acts
or  omissions  as a director or officer of the Company  and/or its  Subsidiaries

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when  statements  for  legal  services  are  delivered  to  the  Company  or the
Indemnitee  (including  any  required  retainer  amounts),  to the  full  extent
allowable under applicable law.

         6. FINES,  COSTS, FEES. Subject to Sections 8 and 9 hereof, the Company
shall promptly pay on the Indemnitee's behalf any fines, court costs, legal fees
or other  charges  assessed  against him related to any Claim where  allegations
against the Indemnitee arise from his acts or omissions as a director or officer
of the  Company  and/or its  Subsidiaries,  to the full extent  allowable  under
applicable law.

         7. ADVANCE PAYMENT OF EXPENSES.  Expenses incurred by the Indemnitee in
connection  with  defending  a Claim  shall be paid by the  Company  as they are
incurred and in advance of the final  disposition  of such Claim  within  twenty
(20) days of receipt of an undertaking by the Indemnitee,  in substantially  the
same form as  Exhibit  "A"  hereto,  to repay  such  amount if it is  ultimately
determined  by a court of competent  jurisdiction  that he is not entitled to be
indemnified by the Company. If the Company fails to advance any amounts required
to be advanced  under this Section 7 within twenty (20) days after receipt of an
undertaking by the Indemnitee,  the Indemnity may at any time  thereafter  bring
suit  against  the  Company for  specific  performance  or to recover the unpaid
amount. If successful in whole or in part, the Indemnitee shall also be entitled
to be paid the expense of prosecuting such claim.

         8.  GENERAL  RIGHT  TO  INDEMNIFICATION.  Upon  written  demand  by the
Indemnitee  for  indemnification  under  the  terms  of this  Agreement  (unless
otherwise  ordered  by a court or  advanced  pursuant  to  Section  7 hereof  or
advanced  pursuant to  applicable  law, as the same may be amended  from time to
time (but, in the case of any such amendment with reference to events  occurring
prior to the effect date thereof, only to the extent that such amendment permits

                                       3
<PAGE>

the Company to provide  broader  indemnification  rights than such law permitted
the  Company to  provide  prior to such  amendment)),  the  Indemnitee  shall be
entitled to such  indemnification  unless the Reviewing Party determines  within
thirty (30) days of receiving  Indemnitee's  written  demand that the Indemnitee
would not be permitted to be indemnified  under  applicable  law. The Indemnitee
and its  counsel  shall be  given an  opportunity  to be  heard  and to  present
evidence on the Indemnitee's behalf before the Reviewing Party. If the Reviewing
Party  determines  that the Indemnitee is not entitled to  indemnification,  the
Reviewing   Party  shall   provide  the   Indemnitee,   concurrently   with  its
determination,  a detailed written  explanation  setting forth its reasons.  The
failure to provide the  Indemnitee  with a detailed  written  explanation  shall
entitle  the  Indemnitee  to a  presumption  that  the  Indemnitee  has  met the
applicable  standard  of  conduct  and that the  unfavorable  determination  was
wrongful in any  subsequent  suit brought by either the Indemnity or the Company
to determine whether the Indemnitee is entitled to indemnification.

         9. RIGHT OF INDEMNITEE TO BRING SUIT.

             a) If there has been no  determination by the Reviewing Party or if
the Reviewing Party  determines that the Indemnitee  substantively  would not be
permitted  to be  indemnified  in whole or in part  under  applicable  law,  the
Indemnitee  shall have the right to bring suit seeking an initial  determination
by the court or challenging any such determination by the Reviewing Party or any
aspect  thereof  (and  the  Indemnitee  shall  be  entitled  to any  presumption
specified in Section 8 hereof),  and the Company  hereby  consents to service of
process and to appear in any such proceeding. Any determination by the Reviewing
Party  otherwise  shall  be  conclusive  and  binding  on the  Company  and  the
Indemnitee.

                                       4
<PAGE>

             b) In any action  brought by the  Indemnitee  to enforce a right to
indemnification  hereunder, or by the Company to recover payments by the Company
of expenses  incurred by the Indemnitee in connection with a Claim in advance of
its final disposition, the burden of proving that the Indemnitee is not entitled
to be  indemnified  under this  Agreement or otherwise  shall be on the Company.
Neither  the  failure  of the  Company  or the  Reviewing  Party to have  made a
determination  prior to the commencement of such action that  indemnification of
the Indemnitee is proper in the circumstances because the Indemnitee has met the
applicable  standard of conduct set forth under  applicable  law,  nor an actual
determination  by the Company or the Reviewing Party that the Indemnitee has not
met such  applicable  standard of conduct,  shall create a presumption  that the
Indemnitee  has not met the  applicable  standard  of conduct or, in the case of
such an action brought by the Indemnitee, be a defense to the Claim.

             c) The Company shall pay all expenses  (including  attorneys' fees)
actually and  reasonably  incurred by the  Indemnitee  in  connection  with such
judicial  determination,   whether  or  not  the  Indemnitee  prevails  in  such
proceeding.

         10.  INSURANCE.  If a loss,  payment  or expense  contemplated  by this
Agreement is paid by the Company and is also covered by  collectible  insurance,
the  Indemnitee  shall  cooperate  with the Company to effect  collection of all
available  insurance  and through  assignment,  reimbursement  to the Company or
otherwise exercise all reasonable efforts to cause applicable insurance benefits
to be paid to or on behalf of the Company,  thus reducing the Company's payments
under this Agreement.

         11. LAW, CONSTRUCTION,  ARBITRATION.  This Agreement is to be liberally
construed to provide the  Indemnitee  with the broadest  indemnity  permitted by
applicable law and ambiguities in the terms of this Agreement, if any, choice of

                                       5
<PAGE>

law, or construction of laws are to be resolved in the  Indemnitee's  favor. The
Indemnitee  shall be  entitled to the  benefits  of all changes in law,  whether
effected by statute,  regulation, rule, judicial decision or otherwise, which in
any way expand his right to be indemnified by the Company or to have the Company
advance his expenses. The law of the State of Nevada shall apply.

         12.  OTHER  MEANS  OF  INDEMNITY.  The  Company  acknowledges  that the
benefits to the  Indemnitee  of this  Agreement  are not  exclusive and that the
Indemnitee  retains all rights of indemnity  or repayment  from the Company that
are  available  to him by  applicable  law,  other  agreements,  the Articles of
Incorporation  and By-Laws of the Company and/or its  Subsidiaries or by vote of
the Board of Directors or stockholders of the Company.

         13.  SUBROGATION.  In the event of payment  under this  Agreement,  the
Company  shall be  subrogated to the extent of such payment to all of the rights
of recovery of the  Indemnitee,  who shall execute all papers required and shall
do  everything  that may be  necessary  to secure  such  rights,  including  the
execution  of such  documents  necessary  to enable the Company to bring suit to
enforce such rights.

         14. NO DUPLICATION  OF PAYMENTS.  The Company shall not be liable under
this Agreement to make any payment in connection with any Claim made against the
Indemnitee to the extent the Indemnitee has otherwise  actually received payment
(under any insurance policy or otherwise).

         15. TERM.  This  Agreement  shall remain in full force and effect until
terminated by the mutual  consent of the parties in writing.  Termination of the
Indemnitee's  status  as a  director  or  officer  of  the  Company  and/or  its
Subsidiaries  does not terminate this  Agreement.  This Agreement  inures to the
benefit of the Indemnitee,  his estate,  heirs, and the personal  representative
(executor/administrator) of his estate.

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<PAGE>

         16.  GOOD FAITH.  If any dispute  arises  under this  Agreement  or any
attack is made by anyone related to the enforcement of this Agreement,  it shall
be  conclusively  presumed that the Indemnitee  acted in good faith in executing
this  Agreement  and  for  the  best  interest  of  the  Company.   The  Company
acknowledges  that it is fully  informed of all  decisions and votes made by the
Indemnitee in the past and recognizes  its right to keep itself  informed in the
future.

         17.  DEFENSE.  If any claim is  threatened  or  commenced  against  the
Indemnitee  other  than by or on  behalf of the  Company,  he shall  notify  the
Company in writing.  His failure to do so or to do so promptly,  however,  shall
not diminish his rights  under this  Agreement  except to the extent the Company
demonstrates by clear and convincing  evidence that his failure caused it actual
damage. The Company may assume the defense of the claim, but only if it pays all
costs and expenses of defense, acknowledges to the Indemnitee in writing that it
is  obligated to  indemnify  him with  respect to the claim,  and permits him to
select defense counsel.  Any counsel the Indemnitee  selects shall be reasonably
satisfactory to the Company. If the Company assumes the defense,  the Indemnitee
shall  cooperate  with the  Company  in that  defense  if it pays his  costs and
expenses of doing so. The Company shall not settle any claim in any manner which
would impose a penalty,  liability or  limitation on the  Indemnitee  unless the
Indemnitee  first consents to the  settlement in writing.  He shall not withhold
his consent unreasonably.

         18.  SEVERABILITY.  If any provision of this Agreement shall be held to
be invalid, illegal or unenforceable,  the validity, legality and enforceability
of the  remaining  provisions  (including  portions  of any  paragraph  of  this
Agreement containing an invalid,  illegal or unenforceable  provision) shall not
be impaired.  To the extent practicable,  any invalid,  illegal or unenforceable
provision of this Agreement shall be deemed modified as necessary to comply with
all applicable laws.

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<PAGE>

         19.  AMENDMENTS AND WAIVERS.  No amendment of this  Agreement  shall be
binding unless the amendment is in writing and executed by both parties. Waiver,
if any, of a provision  of this  Agreement  shall not  constitute  waiver of any
other provision.

         20.  SPECIFIC  PERFORMANCE.  The parties hereto agree that  irreparable
damage  would occur in the event that any  provision of this  Agreement  was not
performed  in  accordance  with the terms  hereof and that the parties  shall be
entitled to specific  performance of the terms hereof,  in addition to any other
remedy at law or in equity.

         IN WITNESS WHEREOF, the parties hereto have caused this Indemnification
Agreement  to be duly  executed  and signed  effective  as of the date first set
forth above.

                                   TSET, INC.

                                   By:/S/ JEFFREY D. WILSON
                                      ---------------------
                                         Jeffrey D. Wilson
                                         Chairman and Chief Executive Officer

                                   AGREED TO AND ACCEPTED BY INDEMNITEE:

                                   By:/S/ RICHARD F. TUSING
                                      ---------------------
                                         Richard F. Tusing

<PAGE>Exhibit 10.40

                            INDEMNIFICATION AGREEMENT

         THIS INDEMNIFICATION  AGREEMENT (the "Agreement") between TSET, Inc., a
Nevada corporation (the "Company"),  and Charles D. Strang,  (the "Indemnitee"),
is effective as of May 1, 2001.

         In consideration  of the  Indemnitee's  past and future services and to
benefit the Company, the Company and the Indemnitee agree as follows:

         1.  DEFINITIONS.

             a) "CLAIM" means any threatened,  pending or completed action, suit
or proceeding,  liability,  claim, damage,  judgment, cost or expense (including
attorneys' fees,  expenses,  bonds and costs of investigation) or any inquiry or
investigation  that the  Indemnitee  in good  faith  believes  might lead to the
institution  of any such action,  suit or proceeding,  whether civil,  criminal,
administrative, investigative or other.

             b)  "INDEPENDENT  COUNSEL" means a law firm or member of a law firm
that has not  within  the last five (5) years  represented  the  Company  or the
Indemnitee in a matter  material to either or in a matter  material to any other
party to the action,  suit or proceeding  giving rise to the Indemnitee's  claim
for indemnification under this Agreement.  Independent Counsel shall not include
any member of a law firm who would have a conflict of interest under  applicable
standards of professional  conduct in representing the Company or the Indemnitee
in an  action  hereunder.  Such  Independent  Counsel  shall  be  chosen  by the
Indemnitee  and approved by the Board of Directors of the Company (the "BOARD OF
DIRECTORS") which approval shall not be unreasonably withheld.

             c)  "REVIEWING  PARTY"  means  (1) the  Board of  Directors  of the
Company by a majority  vote of a quorum  consisting  of  directors  who were not

<PAGE>

parties  to the  action,  suit,  or  proceeding,  or (2) if such a quorum is not
obtainable,  or,  even if  obtainable  a quorum of  disinterested  directors  so
directs, by Independent Counsel in a written opinion, or (3) by the stockholders
of the Company.

         2. INDEMNITY. Subject to Sections 8 and 9 hereof, the Company agrees to
indemnify and hold the Indemnitee  harmless,  to the fullest extent permitted by
law,  including,  but not  limited  to,  the  extent  and in the  manner  herein
provided,  from and  against  any and all  Claims  of any type  arising  from or
related to his past or future acts or  omissions as a director or officer of the
Company and/or its subsidiaries (which term shall mean any entities of which the
Company owns directly, or through any such subsidiaries,  at least fifty percent
(50%) of the voting stock  (hereinafter  referred to as  "SUBSIDIARIES")).  This
indemnity  shall  extend to all  matters  except to the  extent  applicable  law
prohibits indemnification.

         3. JUDGMENTS. Subject to Sections 8 and 9 hereof, the Company agrees to
promptly  pay on behalf of the  Indemnitee  any and all  judgments  against  the
Indemnitee  for damages  arising from acts or omissions as a director or officer
of the Company and/or its Subsidiaries  when any such judgment becomes final and
subject to execution against the Indemnitee,  to the full extent allowable under
applicable law.

         4. APPEAL BONDS.  Subject to Sections 8 and 9 hereof, the Company shall
pay the cost of, provide collateral for and cause to be timely and duly filed in
court,  appellate bonds to prevent  execution of judgment against the Indemnitee
during the pendency of appeals as the Indemnitee may reasonably initiate, to the
full extent allowable under applicable law.

         5. COST OF  DEFENSE.  Subject to  Sections 8 and 9 hereof,  the Company
shall promptly pay the reasonable cost of the defense of the Indemnitee  against

                                       2
<PAGE>

any and all Claims against him arising from the Indemnitee's past or future acts
or  omissions  as a director or officer of the Company  and/or its  Subsidiaries
when  statements  for  legal  services  are  delivered  to  the  Company  or the
Indemnitee  (including  any  required  retainer  amounts),  to the  full  extent
allowable under applicable law.

         6. FINES,  COSTS, FEES. Subject to Sections 8 and 9 hereof, the Company
shall promptly pay on the Indemnitee's behalf any fines, court costs, legal fees
or other  charges  assessed  against him related to any Claim where  allegations
against the Indemnitee arise from his acts or omissions as a director or officer
of the  Company  and/or its  Subsidiaries,  to the full extent  allowable  under
applicable law.

         7. ADVANCE PAYMENT OF EXPENSES.  Expenses incurred by the Indemnitee in
connection  with  defending  a Claim  shall be paid by the  Company  as they are
incurred and in advance of the final  disposition  of such Claim  within  twenty
(20) days of receipt of an undertaking by the Indemnitee,  in substantially  the
same form as  Exhibit  "A"  hereto,  to repay  such  amount if it is  ultimately
determined  by a court of competent  jurisdiction  that he is not entitled to be
indemnified by the Company. If the Company fails to advance any amounts required
to be advanced  under this Section 7 within twenty (20) days after receipt of an
undertaking by the Indemnitee,  the Indemnity may at any time  thereafter  bring
suit  against  the  Company for  specific  performance  or to recover the unpaid
amount. If successful in whole or in part, the Indemnitee shall also be entitled
to be paid the expense of prosecuting such claim.

         8.  GENERAL  RIGHT  TO  INDEMNIFICATION.  Upon  written  demand  by the
Indemnitee  for  indemnification  under  the  terms  of this  Agreement  (unless
otherwise  ordered  by a court or  advanced  pursuant  to  Section  7 hereof  or
advanced  pursuant to  applicable  law, as the same may be amended  from time to
time (but, in the case of any such amendment with reference to events  occurring

                                       3
<PAGE>

prior to the effect date thereof, only to the extent that such amendment permits
the Company to provide  broader  indemnification  rights than such law permitted
the  Company to  provide  prior to such  amendment)),  the  Indemnitee  shall be
entitled to such  indemnification  unless the Reviewing Party determines  within
thirty (30) days of receiving  Indemnitee's  written  demand that the Indemnitee
would not be permitted to be indemnified  under  applicable  law. The Indemnitee
and its  counsel  shall be  given an  opportunity  to be  heard  and to  present
evidence on the Indemnitee's behalf before the Reviewing Party. If the Reviewing
Party  determines  that the Indemnitee is not entitled to  indemnification,  the
Reviewing   Party  shall   provide  the   Indemnitee,   concurrently   with  its
determination,  a detailed written  explanation  setting forth its reasons.  The
failure to provide the  Indemnitee  with a detailed  written  explanation  shall
entitle  the  Indemnitee  to a  presumption  that  the  Indemnitee  has  met the
applicable  standard  of  conduct  and that the  unfavorable  determination  was
wrongful in any  subsequent  suit brought by either the Indemnity or the Company
to determine whether the Indemnitee is entitled to indemnification.

         9. RIGHT OF INDEMNITEE TO BRING SUIT.

             a) If there has been no  determination by the Reviewing Party or if
the Reviewing Party  determines that the Indemnitee  substantively  would not be
permitted  to be  indemnified  in whole or in part  under  applicable  law,  the
Indemnitee  shall have the right to bring suit seeking an initial  determination
by the court or challenging any such determination by the Reviewing Party or any
aspect  thereof  (and  the  Indemnitee  shall  be  entitled  to any  presumption
specified in Section 8 hereof),  and the Company  hereby  consents to service of
process and to appear in any such proceeding. Any determination by the Reviewing
Party  otherwise  shall  be  conclusive  and  binding  on the  Company  and  the
Indemnitee.

                                       4
<PAGE>

             b) In any action  brought by the  Indemnitee  to enforce a right to
indemnification  hereunder, or by the Company to recover payments by the Company
of expenses  incurred by the Indemnitee in connection with a Claim in advance of
its final disposition, the burden of proving that the Indemnitee is not entitled
to be  indemnified  under this  Agreement or otherwise  shall be on the Company.
Neither  the  failure  of the  Company  or the  Reviewing  Party to have  made a
determination  prior to the commencement of such action that  indemnification of
the Indemnitee is proper in the circumstances because the Indemnitee has met the
applicable  standard of conduct set forth under  applicable  law,  nor an actual
determination  by the Company or the Reviewing Party that the Indemnitee has not
met such  applicable  standard of conduct,  shall create a presumption  that the
Indemnitee  has not met the  applicable  standard  of conduct or, in the case of
such an action brought by the Indemnitee, be a defense to the Claim.

             c) The Company shall pay all expenses  (including  attorneys' fees)
actually and  reasonably  incurred by the  Indemnitee  in  connection  with such
judicial  determination,   whether  or  not  the  Indemnitee  prevails  in  such
proceeding.  10. INSURANCE.  If a loss, payment or expense  contemplated by this
Agreement is paid by the Company and is also covered by  collectible  insurance,
the  Indemnitee  shall  cooperate  with the Company to effect  collection of all
available  insurance  and through  assignment,  reimbursement  to the Company or
otherwise exercise all reasonable efforts to cause applicable insurance benefits
to be paid to or on behalf of the Company,  thus reducing the Company's payments
under this Agreement.

         11. LAW, CONSTRUCTION,  ARBITRATION.  This Agreement is to be liberally
construed to provide the  Indemnitee  with the broadest  indemnity  permitted by
applicable law and ambiguities in the terms of this Agreement, if any, choice of

                                       5
<PAGE>

law, or construction of laws are to be resolved in the  Indemnitee's  favor. The
Indemnitee  shall be  entitled to the  benefits  of all changes in law,  whether
effected by statute,  regulation, rule, judicial decision or otherwise, which in
any way expand his right to be indemnified by the Company or to have the Company
advance his expenses. The law of the State of Nevada shall apply.

         12.  OTHER  MEANS  OF  INDEMNITY.  The  Company  acknowledges  that the
benefits to the  Indemnitee  of this  Agreement  are not  exclusive and that the
Indemnitee  retains all rights of indemnity  or repayment  from the Company that
are  available  to him by  applicable  law,  other  agreements,  the Articles of
Incorporation  and By-Laws of the Company and/or its  Subsidiaries or by vote of
the Board of Directors or stockholders of the Company.

         13.  SUBROGATION.  In the event of payment  under this  Agreement,  the
Company  shall be  subrogated to the extent of such payment to all of the rights
of recovery of the  Indemnitee,  who shall execute all papers required and shall
do  everything  that may be  necessary  to secure  such  rights,  including  the
execution  of such  documents  necessary  to enable the Company to bring suit to
enforce such rights.

         14. NO DUPLICATION  OF PAYMENTS.  The Company shall not be liable under
this Agreement to make any payment in connection with any Claim made against the
Indemnitee to the extent the Indemnitee has otherwise  actually received payment
(under any insurance policy or otherwise).

         15. TERM.  This  Agreement  shall remain in full force and effect until
terminated by the mutual  consent of the parties in writing.  Termination of the
Indemnitee's  status  as a  director  or  officer  of  the  Company  and/or  its
Subsidiaries  does not terminate this  Agreement.  This Agreement  inures to the
benefit of the Indemnitee,  his estate,  heirs, and the personal  representative
(executor/administrator) of his estate.

                                       6
<PAGE>

         16.  GOOD FAITH.  If any dispute  arises  under this  Agreement  or any
attack is made by anyone related to the enforcement of this Agreement,  it shall
be  conclusively  presumed that the Indemnitee  acted in good faith in executing
this  Agreement  and  for  the  best  interest  of  the  Company.   The  Company
acknowledges  that it is fully  informed of all  decisions and votes made by the
Indemnitee in the past and recognizes  its right to keep itself  informed in the
future.

         17.  DEFENSE.  If any claim is  threatened  or  commenced  against  the
Indemnitee  other  than by or on  behalf of the  Company,  he shall  notify  the
Company in writing.  His failure to do so or to do so promptly,  however,  shall
not diminish his rights  under this  Agreement  except to the extent the Company
demonstrates by clear and convincing  evidence that his failure caused it actual
damage. The Company may assume the defense of the claim, but only if it pays all
costs and expenses of defense, acknowledges to the Indemnitee in writing that it
is  obligated to  indemnify  him with  respect to the claim,  and permits him to
select defense counsel.  Any counsel the Indemnitee  selects shall be reasonably
satisfactory to the Company. If the Company assumes the defense,  the Indemnitee
shall  cooperate  with the  Company  in that  defense  if it pays his  costs and
expenses of doing so. The Company shall not settle any claim in any manner which
would impose a penalty,  liability or  limitation on the  Indemnitee  unless the
Indemnitee  first consents to the  settlement in writing.  He shall not withhold
his consent unreasonably.

         18.  SEVERABILITY.  If any provision of this Agreement shall be held to
be invalid, illegal or unenforceable,  the validity, legality and enforceability
of the  remaining  provisions  (including  portions  of any  paragraph  of  this
Agreement containing an invalid,  illegal or unenforceable  provision) shall not
be impaired.  To the extent practicable,  any invalid,  illegal or unenforceable
provision of this Agreement shall be deemed modified as necessary to comply with
all applicable laws.

                                       7
<PAGE>

         19.  AMENDMENTS AND WAIVERS.  No amendment of this  Agreement  shall be
binding unless the amendment is in writing and executed by both parties. Waiver,
if any, of a provision  of this  Agreement  shall not  constitute  waiver of any
other provision.

         20.  SPECIFIC  PERFORMANCE.  The parties hereto agree that  irreparable
damage  would occur in the event that any  provision of this  Agreement  was not
performed  in  accordance  with the terms  hereof and that the parties  shall be
entitled to specific  performance of the terms hereof,  in addition to any other
remedy at law or in equity.

         IN WITNESS WHEREOF, the parties hereto have caused this Indemnification
Agreement  to be duly  executed  and signed  effective  as of the date first set
forth above.

                                   TSET, INC.

                                   By:/S/ JEFFREY D. WILSON
                                      ---------------------
                                         Jeffrey D. Wilson
                                         Chairman and Chief Executive Officer

                                   AGREED TO AND ACCEPTED BY
                                   INDEMNITEE:

                                   By:/S/ CHARLES D. STRANG
                                      ---------------------
                                         Charles D. Strang

                                       8

<PAGE>

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