Document:

Exhibit 10.2 - Collaboration Agreement

                             COLLABORATION AGREEMENT

THIS COLLABORATION AGREEMENT is made and entered as of July, 2004 by and
between:

(1)   ACTIVEPOINT LTD., a company incorporated under the laws of the State of
      Israel, Co. no. 51-255867-7, having its registered offices at 20 Giborei
      Israel Street, Poleg Industrial Zone, Netanya South 42504, Israel
      ("ACTIVEPOINT"); and

(2)   WWAP, a company incorporated under the laws of the State of Delaware,
      having its registered office at, 20 Giborei Israel Street, Poleg
      Industrial Zone, Netanya South 42504, Israel ("WWAP").

WHEREAS:    ActivePoint is engaged in the business related to the development,
            design, manufacture, sale and/or service of the certain proprietary
            products; and,

WHEREAS:    WWAP is engaged in the marketing and distributing of technology
            products and is further engaged in the funding of research and
            development of technology and products related thereto; and,

WHEREAS:    WWAP desires to license from ActivePoint, consistent with
            obligations and undertakings imposed on ActivePoint by local laws
            and regulations under research and development programs of the State
            of Israel, an exclusive and perpetual right to use ActivePoint's
            products and to fund the research and development efforts managed by
            ActivePoint and obtain ownership of new technology and/or products
            as developed by ActivePoint.

NOW THEREFORE, IT IS AGREED AS FOLLOWS:

1.    INTERPRETATION

      1.1   Capitalized terms shall have, in this Agreement, the meanings as
            detailed alongside them as follows:

            "AFFILIATE" or "AFFILIATE" means with respect to any Person, any
            other Person that, directly or indirectly, controls or is controlled
            by or is under common control with such Person. As used in this
            definition of "Affiliate" the term "control" and any derivatives
            thereof mean the possession, directly or indirectly, of more than
            50% of the voting rights or the rights to appoint directors, whether
            through ownership of voting securities, by contract or otherwise.

            "BUSINESS DAY" means any day, other than a Friday, Saturday, Sunday
            or a legal holiday in Israel or the U.S.

            "CONFIDENTIAL INFORMATION" means technical information, future
            plans, projected and historical sales, marketing, costs, production,
            growth and distribution, any customer lists, customer information,
            information relating to governmental relations and any other
            information, whether in human readable form or otherwise, that
            concerns or relates to any aspect of the business of the Disclosing
            Party (as defined hereunder) or for any reason is treated by the
            Disclosing Party as confidential.

                                       1
<PAGE>

Exhibit 10.2 - Collaboration Agreement

            "INTELLECTUAL PROPERTY" means all intangible legal rights, titles
            and interest, attached to and/or embodied in: (i) any and all
            patents (whether utility or design patens), patent applications
            (whether pending or not), and patent disclosures, together with all
            reissuances, continuations, continuations-in-part, revisions,
            extensions, and reexaminations thereof; (ii) all trademarks, service
            marks, trade dress, designs, trade styles, logos, trade names, and
            corporate names, together with all translations, adaptations,
            derivations and combinations thereof, and all applications
            registrations and renewals in connection therewith; (iii) all
            copyrightable works, copyrights (including DROIT MORAL) whether
            registered or not, and all applications and renewals in connection
            therewith; (iv) all mask works, and all applications, registrations
            and renewals in connection therewith; (v) all trade secrets and
            Confidential Information; and (vi) all other proprietary rights,
            industrial rights, commercial rights and any other similar rights,
            in each case on a world wide basis, and all copies and tangible
            embodiments thereof (in whatever form or medium).

            "LICENSED INTELLECTUAL PROPERTY" means Intellectual Property owned
            by ActivePoint on the Effective Date, as detailed in EXHIBIT A
            hereto.

            "LICENSED PRODUCTS" means products (including components thereof)
            embodying or covered by the Licensed Intellectual Property, listed
            in EXHIBIT A hereto.

            "NEW INTELLECTUAL PROPERTY" means Intellectual Property which is
            embodied in or covering the New Technology.

            "PERSON" means an individual, partnership, corporation, limited
            liability company, joint venture, unincorporated organization,
            cooperative or a governmental entity or agency thereof.

            "PRODUCTS" means the Licensed Products as well as Products developed
            according to the provisions of this Agreement and Products sold by
            WWAP based on the Licensed Intellectual Property and the New
            Intellectual Property.

            "SECURITY INTEREST" means and includes any interest or equity of any
            Person (including any right to acquire, option, or right
            ofpre-emption) or any mortgage, charge, pledge, lien, or assignment,
            or any other encumbrance or security interest or arrangement of
            whatsoever nature over or in the relevant property.

      1.2   Unless the context otherwise requires, words denoting the singular
            shall include the plural and vice versa.

      1.3   The preamble to this Agreement and its Schedules are incorporated
            herein by reference and made a part hereof.

      1.4   The section headings contained in this Agreement are inserted for
            convenience only and shall not affect in any way the meaning or
            interpretation of this Agreement.

2.    LICENSE

      2.1   Subject to the obligations imposed on ActivePoint by local laws and
            regulations under research and development programs of the State of
            Israel, ActivePoint hereby grants to

                                       2
<PAGE>

Exhibit 10.2 - Collaboration Agreement

            WWAP an exclusive, perpetual and transferable right and license to
            use or exploit in any part of the world and in any manner that WWAP
            deems desirable, the Licensed Intellectual Property and the Licensed
            Products ("LICENSE"), including but not limited to:

            2.1.1 To use the Licensed Intellectual Property and Licensed
                  Products;

            2.1.2 To develop, make, have made, assemble or have assembled the
                  Licensed Products or any other Products and further to sell,
                  license, use, lease or otherwise dispose of and, if
                  applicable, service such Licensed Products and other Products;
                  and

            2.1.3 To incorporate the software components of the Licensed
                  Products ("LICENSED SOFTWARE"), including the right to copy
                  and modify the Licensed Software and to make or have made
                  derivative works of the Licensed Software.

      2.2   ActivePoint will not license or otherwise grant any right in or to
            the Licensed Intellectual Property and the Licenses Products, unless
            WWAP provides prior written approval to such, at its sole
            discretion.

      2.3   The rights and License granted hereunder to WWAP shall be construed
            as broadly as possible, without any reservations, limitations,
            exclusions or waivers whatsoever.

3.    ROYALTIES AND PAYMENT TERMS

      3.1   In consideration for the License, WWAP will pay to ActivePoint a
            royalty of 65% out of all Proceeds (as defined hereunder) received
            by WWAP from all Licensed Products sold, licensed, leased or
            otherwise disposed of, and of all services performed with respect to
            the Licensed Products ("ROYALTY"). Upon expiration of a period of
            eighteen (18) months after the Effective Date, the parties shall in
            good faith reconsider and revaluate the Royalty percentage rate, and
            shall conduct good faith negotiations in order to adjust the Royalty
            percentage rate, if so agreed.

      3.2   Licensed Products shall be considered to have been "sold" upon
            receipt by WWAP of the full consideration for the sale of the
            Licensed Products. Licensed Products shall be considered as having
            been "otherwise disposed of" upon receipt by WWAP of the full
            consideration from any: (1) lease or loan to third parties; (2)
            barter or exchange with third parties for goods or services; (3)
            sold after having been incorporated into assemblies or other
            equipment, or (4) otherwise transferred to third parties.

      3.3   "Proceeds" means WWAP's total income from the sale of license of the
            Licensed Products or for services utilizing the Licensed
            Intellectual Property that are rendered in relation to the Licensed
            Products.

            Where Licensed Products are "otherwise disposed of", Proceeds shall
            be deemed to be the price at which similar products have been or
            would be freely sold in the open market to a non-affiliated or
            non-associated company in the ordinary course of business, taking
            into account the time and quantity of products sold.

      3.4   WWAP will make written reports on a quarterly basis within thirty
            (30) days after each successive January 1st, April 1st, July 1st and
            October 1st occurring after the Effective Date. Each report shall
            state the quantity, description and aggregate Proceeds of the

                                       3
<PAGE>

Exhibit 10.2 - Collaboration Agreement

            Licensed Products and services sold during the reporting period and
            shall include a computation of the amount due to ActivePoint under
            the provisions of Section 3.1 above.

      3.5   Royalties payable under Section 3.1 above shall be paid by WWAP
            concurrently with each Report, by wire transfer to a bank account
            specified by ActivePoint, out of amount actually received and
            collected by WWAP. The Royalties shall be calculated and converted
            into U.S. dollars at the official selling exchange rate in effect on
            the date of issuance of the report.

      3.6   If Royalty payments due from WWAP are delayed beyond the due date
            thereof for any reason, WWAP shall pay to ActivePoint interest on
            such delayed payment for the period from such due date until the
            date payment is actually made to ActivePoint at a rate of LIBOR + 5%
            per annum.

      3.7   WWAP may deduct income withholding taxes imposed by relevant
            governmental authorities on payments made hereunder. WWAP will
            provide ActivePoint with copies of all relevant receipts for such
            taxes it deducts, ensuring that the amounts actually received by
            ActivePoint plus said tax receipts equal the total amounts payable
            to ActivePoint.

      3.8   WWAP further agrees to permit its applicable records to be examined
            from time to time by an auditor appointed by ActivePoint and
            acceptable to WWAP, to verify the accuracy of the reports provided
            by WWAP to ActivePoint and the amounts due and payable hereunder.
            Such examination shall be at the expense of ActivePoint, except that
            WWAP shall reimburse ActivePoint for such expense if the examination
            reveals that the amounts paid to ActivePoint are less than 90% of
            what is due and owing to ActivePoint. WWAP undertakes to keep such
            Reports for six (6) years from issuance and to keep other related
            records in sufficient detail to substantiate all royalties payable
            hereunder.

4.    NEW TECHNOLOGY

      4.1   Subject to the provisions included herein, ActivePoint shall design,
            develop and implement new technology as may be requested from time
            to time by WWAP ("NEW TECHNOLOGY"). No New Technology shall be
            created and/or implemented by ActivePoint other than pursuant to
            this Agreement.

      4.2   WWAP shall provide ActivePoint from time to time with service orders
            per each New Technology requested pursuant to this Agreement,
            including the initial idea and functional requirements for each such
            task, an estimated budget for such a task, a description of the work
            requested from ActivePoint, an estimated timetable for completion of
            such task and any other details that are required with regard
            thereto.

      4.3   All New Technology shall be developed in accordance with
            specifications as shall be agreed to by the parties hereto and shall
            be delivered to WWAP within the time frame determined by the parties
            by mutual agreement. Changes to the agreed specifications or in
            connection with any other aspect of the developmental work
            hereunder, shall be made by mutual agreement. Such agreement shall
            be reached by way of good faith negotiations between the parties.

                                       4
<PAGE>

Exhibit 10.2 - Collaboration Agreement

      4.4   In consideration for ActivePoint's performance hereunder, WWAP will
            make payment to ActivePoint based on full reimbursement to
            ActivePoint of all costs and expenses incurred by ActivePoint in
            order to provide the aforesaid services + 10%.

      4.5   ActivePoint undertakes to maintain proper records in respect of its
            performance hereunder, sufficient to support any charges to WWAP for
            any work performed under this Agreement and to make such records
            available to WWAP during normal business hours.

      4.6   ActivePoint shall promptly and fully disclose to WWAP any New
            Technology together with all pertinent facts relating thereto as may
            be known and accessible to ActivePoint. Additionally, ActivePoint
            shall document the development of New Technology, including periodic
            and contemporaneous records in whatever media, detailed technical
            descriptions of the New Technology and witnessed and dated printed
            copies of computer programs indicating the developers' names and a
            description of the New Technology. All documentation shall comply
            with WWAP's requirements as may be modified from time to time.
            ActivePoint shall provide WWAP with such documentation upon delivery
            of the New Technology or upon WWAP's request.

      4.7   ActivePoint shall be readily available to update WWAP on the
            development of the New Technology and more particularly to discuss
            the nature of all work done by ActivePoint with respect thereto.

      4.8   Contract labour and other third party assistance may be used by
            ActivePoint to develop the New Technology only if:

            4.8.1 ActivePoint and such third party have executed a valid
                  non-disclosure agreement which names WWAP as the beneficiary
                  of the third party's obligations thereunder; and

            4.8.2 The third party assigns all of his or its interest, rights and
                  ownership in the New-Technology and any Intellectual Property
                  Rights embodied therein to WWAP, such that WWAP would be able
                  to give effect to the provisions of Section 4.11 below.

      4.9   All New Technology developed by ActivePoint under this Agreement
            including work in progress, prototypes and the like shall be the
            sole and exclusive property of WWAP.

      4.10  WWAP shall own any and all Intellectual Property embodied in the New
            Technology, whether or not the New Technology is patentable,
            copyrightable or susceptible to any other form of legal protection.
            ActivePoint agrees that all copyrightable works of authorship
            created or prepared by ActivePoint's employees shall be deemed works
            made for hire to the benefit of WWAP.

      4.11  ActivePoint hereby assigns and agrees to assign to WWAP all right,
            title and interest in and to the New Technology, on a world wide
            basis, including the full and exclusive right to file and prosecute
            and own all applications for patents, copyright registration, design
            registration or other Intellectual Property protection covering the
            New Technology, together with the right of priority and all other
            rights under any and all international agreements which may be
            applicable.

                                       5
<PAGE>

Exhibit 10.2 - Collaboration Agreement

      4.12  ActivePoint shall assist WWAP and cause every person or entity
            involved in the development of the New Technology to assist WWAP to
            obtain, maintain and protect the rights of WWAP its nominees and
            assignees in the New Technology.

      4.13  ActivePoint warrants:

           4.13.1 that to the best of its then existing knowledge neither
                  WWAP's nor ActivePoint's use nor sale of the New Technology or
                  any product embodying the New Technology will constitute an
                  infringement or violation of any Intellectual Property of any
                  third party; and,

           4.13.2 that the tasks and services performed under this Agreement
                  shall be performed in a good and workmanlike manner in
                  accordance with any established professional standards for
                  such tasks and services, and with the best practices in
                  ActivePoint's industry, and that the tasks and services and
                  any reports, drawings, advice or other products of the tasks
                  and services shall comply with all applicable laws,
                  regulations, codes and ordinances.

            In the event of any failure by ActivePoint to comply with the
            warranties of this Section 4.14, then in addition to exercising any
            of WWAP's other rights and remedies under this Agreement or
            otherwise at law, and at no additional expense to WWAP, WWAP may
            require that ActivePoint: (i) replaces infringing items with a non
            infringing equivalent or part thereof of equal performance and
            quality; (ii) modify the infringing items so that they become non
            infringing, or (iii) perform all necessary tasks and services in
            accordance to the time frame agreed to by the parties such that
            ActivePoint may provide a product which conforms to the criteria
            agreed to by the parties.

5.    DISCLOSURE OF TECHNICAL INFORMATION, ASSISTANCE AND TRAINING

      5.1   From time to time, and in any event promptly upon request from WWAP,
            ActivePoint shall disclose to WWAP any of its technical information,
            including any improvements thereto ("TECHNICAL INFORMATION").
            Technical Information shall be furnished in the English language and
            otherwise in form and system of measurements in which it is
            available to ActivePoint at the time of disclosure.

      5.2   On WWAP's request, ActivePoint shall provide WWAP with technical
            assistance, training and support, including sending of technical
            specialists to WWAP's facilities and there making available to
            WWAP's employees technical assistance relating to the Technical
            Information and the Products, free of any additional charge, except
            that any travel and lodging expenses related thereto shall be borne
            by ActivePoint and reimbursed by WWAP.

      5.3   ActivePoint shall use all reasonable efforts to provide WWAP with
            any technical support, training and assistance, as requested by WWAP
            from time to time.

6.    REPRESENTATIONS AND WARRANTIES

The parties hereto each represent and warrant as follows:

                                       6
<PAGE>

Exhibit 10.2 - Collaboration Agreement

      6.1   Each party is duly organized and validly existing under the laws of
            the state of its incorporation. Each party has all requisite
            corporate power and authority to carry on its business as currently
            conducted and to own its properties.

      6.2   Each party has at all times carried on its business and affairs in
            all material respects in accordance with its organizational
            documents, and has been granted and there are now in force all
            necessary approvals, consents and licenses for the carrying on of
            its business in the places and in the manner in which it is now
            carried on or proposed to be carried on. Each party is not aware of
            any circumstances which evidence or indicate that any such
            approvals, consents or licenses are likely to be suspended,
            cancelled or revoked or not renewed in the ordinary course.

      6.3   Each party has conducted its business in all material respects in
            accordance with all applicable laws and regulations of the countries
            in which it has conducted its business and there is no violation or
            default with respect to any statute, regulation, order, decree, or
            judgment of any court or any governmental agency which could have an
            adverse effect upon such party's business.

      6.4   Except as set forth in SCHEDULE 6.4, attached hereto, there is no
            outstanding or, to the best of such party's knowledge, threatened
            order, writ, injunction, or decree of any court, governmental agency
            or arbitration tribunal against such party affecting, involving or
            relating to such party or its business.

      6.5   Each party has all requisite power and authority to execute,
            deliver, and perform this Agreement. This Agreement is the legal,
            valid, and binding obligation of such party, and is enforceable as
            to such party in accordance with its terms.

      6.6   All necessary corporate proceedings of each party have been duly
            taken to authorize the execution, delivery, and performance of this
            Agreement.

      6.7   No approval, authorization, consent, permission or waiver to or
            from, or notice, filing or recording to or with, any person or
            governmental authority is necessary for the execution, delivery and
            performance of this Agreement.

      6.8   Compliance with the terms of this Agreement will not constitute a
            breach of any contract to which any of the parties is a party, will
            not cause such party to lose any interest in or the benefit of any
            asset, right, license or privilege it presently owns or enjoys, will
            not result in any present or future indebtedness of such party
            becoming due prior to its stated maturity and will not give rise to
            or cause to become exercisable any option or right of pre-emption.

      6.9   ActivePoint represents and warrants as follows:

            6.9.1 ActivePoint has good, valid, subsisting, unexpired and
                  enforceable title to, free and clear of all Security
                  Interests, or otherwise possesses adequate and exclusive
                  rights to use, all of the Licensed Intellectual Property.

            6.9.2 ActivePoint has taken and will take reasonable security
                  measures, including measures against unauthorized disclosure,
                  to protect the secrecy, confidentiality, and value of its
                  trade secrets and other Technical Information. No employee,
                  director or

                                       7
<PAGE>

Exhibit 10.2 - Collaboration Agreement

                  shareholder of ActivePoint or former employer of any such
                  employee, director or shareholder of ActivePoint has any
                  rights to processes, systems and techniques used or
                  contemplated to be used by ActivePoint.

            6.9.3 To the best of ActivePoint's knowledge, The Licensed
                  Intellectual Property has not infringed and will not infringe
                  upon any intellectual property rights of others and the use of
                  such Licensed Intellectual Property will not constitute an
                  infringement, misappropriation or misuse of any intellectual
                  property rights of any third party. No person has the right to
                  assert any claim regarding the use of, or challenging or
                  questioning ActivePoint's right or title in any of the
                  Licensed Intellectual Property.

            6.9.4 To the best of ActivePoint's knowledge, no third party has
                  infringed upon any intellectual property rights of
                  ActivePoint.

            6.9.5 There are no outstanding options, licenses or agreements of
                  any kind relating to the Licensed Intellectual Property, nor
                  is ActivePoint bound by or a party to any options, licenses or
                  agreements of any kind with respect to the Licensed
                  Intellectual Property. ActivePoint has not granted,
                  transferred, or assigned any ownership right, title or
                  interest in the Licensed Intellectual Property to any Person.

7.    INDEMNIFICATION

      Each party ("INDEMNIFYING PARTY") shall indemnify, defend, and hold
      harmless the other party hereto and its respective successors and assigns
      and the directors, officers, employees, and agents ("INDEMNIFIED PARTY"),
      from and against any and all demands, claims, actions, or causes of
      action, assessments, losses, damages, liabilities, costs, and expenses,
      including reasonable fees and expenses of counsel, other expenses of
      investigation, handling, and litigation, and settlement amounts, together
      with interest and penalties (collectively, a "LOSS" or "LOSSES"), asserted
      against, resulting to, imposed upon, or incurred by such Indemnified
      Party, directly or indirectly, by reason of, resulting from, or arising in
      connection with any breach, falsity, omission or failure of any of the
      representations, warranties, undertakings or covenants of the Indemnifying
      Party contained herein, PROVIDED THAT, the Indemnified Party: (i) promptly
      informs the Indemnifying Party of such claim; (ii) allows the Indemnifying
      Party to assume the defense of such claim; and (iii) provides the
      Indemnifying Party the required assistance in the defense of such claim,
      at the Indemnifying Party's expense.

8.    CONFIDENTIALITY AND NON COMPETITION

      8.1   Any party receiving Confidential Information licensed or disclosed
            hereunder ("RECEIVING PARTY"), shall, and shall use its best efforts
            to cause its respective personnel and agents to, hold in strict
            confidence, not disclose to any Person and not use in any manner
            whatsoever without any Confidential Information disclosed by the
            party disclosing the Confidential Information ("DISCLOSING PARTY"),
            without the prior written consent of the Disclosing Party, except:
            (1) to the extent that such Confidential Information is disclosed in
            accordance with the provisions of this Agreement and for the
            purposes specified herein, in which case Receiving Party shall take
            reasonable care to limit further use and disclosure for the
            authorized purpose, (2) to the extent such confidential Information
            becomes part of the public domain other than as a result of a breach
            of an obligation to the Disclosing Party not

                                       8
<PAGE>

Exhibit 10.2 - Collaboration Agreement

            to disclose such Confidential Information, or (3) under operation of
            law; provided, however, that immediately upon the requirement to
            disclose Confidential Information the Receiving Party shall provide
            an urgent notice to the Disclosing Party detailing the nature and
            purpose of such disclosure and provide all reasonable assistance to
            enable Disclosing Party to seek and obtain a protective order
            against such disclosure.

      8.2   ActivePoint agrees that as of the Effective Date and until the
            expiry of a term of 18 months after this Agreement is terminated
            pursuant to Section 9 below, it shall not anywhere in the world,
            directly or indirectly (i) own, invest in, assist in the development
            of, or have any management role in, any firm, corporation, business
            or other organization or enterprise engaged, directly or indirectly
            competing with WWAP's activities related to the Licensed Products,
            Licensed Intellectual Property and any Products, (ii) solicit for
            employment any employee of WWAP or any body controlled by WWAP, or
            (iii) interfere with, disrupt or attempt to disrupt the relationship
            between WWAP or any of its Affiliates, on the one hand, and any of
            their respective employees, customers or suppliers, on the other
            hand. If any court determines that the restrictive covenant set
            forth in this Section 8.2, or any part of such covenant, is
            unenforceable because of the duration of such provision or the area
            covered thereby, such court shall have the power to reduce the
            duration or area of such provision and, in its reduced form, such
            provision shall then be enforceable and shall be enforced.

9.    TERM AND TERMINATION

      9.1   This Agreement shall be effective as of the date hereof and receipt
            of any approvals required by law, including from any governmental
            authorities ("EFFECTIVE DATE"). If any required approvals would have
            not been obtained within 6 months after the execution of this
            Agreement, either party shall have the right, exercisable thereafter
            at any time prior to receipt of such approval, to terminate this
            Agreement by prior written notice to the other party.

      9.2   This Agreement may be terminated by either party by written notice
            to the other party stating the reasons therefore if:

            9.2.1 Such termination is necessary to comply with any order, decree
                  or request of any authorized governmental authority or of any
                  court, department or agency thereof; or,

            9.2.2 The other party fails or is unable to is perform any material
                  obligation or undertaking to be performed by it under this
                  Agreement, or violates any of the rights granted to it under
                  this Agreement, and the default, inability or violation is not
                  corrected within sixty (60) days after notice specifying the
                  nature thereof and referring to this Section 9.2 is received
                  by such breaching party.

      9.3   All transfers of Intellectual Property, technical information and
            software from ActivePoint to WWAP under this Agreement, and the
            License and any other licenses granted to WWAP hereunder, are
            perpetual and irrevocable, regardless of termination.

                                       9
<PAGE>

Exhibit 10.2 - Collaboration Agreement

      9.4   The following Sections shall survive termination of this Agreement
            for any reason whatsoever: 7, 8, reports, 10.

10.   GOVERNING LAW AND DISPUTE RESOLUTION

      This Agreement shall be governed by and construed in accordance with the
      laws of the State of Israel, without giving effect to its conflict of law
      provision, and the courts of the Tel Aviv and Central Districts of the
      State of Israel shall have sole jurisdiction over any conflict and/or
      dispute arising out of, or in connection with, this Agreement.

11.   MISCELLANEOUS

      11.1  This Agreement shall not confer any rights or remedies upon any
            Person other than the parties hereto and their respective successors
            and permitted assigns.

      11.2  This Agreement constitutes the entire agreement among the parties
            hereto and supersedes any prior understandings, agreements or
            representations by or among the parties hereto, written or oral, to
            the extent they related in any way to the subject matter hereof.

      11.3  This Agreement shall be binding upon and inure to the benefit of the
            parties named herein and their respective successors and permitted
            assigns. Subject to the provisions of this Agreement no party may
            assign either this Agreement or any of his or its rights, interests,
            or obligations hereunder without the prior written approval of the
            other parties hereto; provided, however, that WWAP may (i) assign
            any or all of its rights and interests hereunder to one or more of
            its Affiliates and (ii) designate one or more of its Affiliates to
            perform its obligations hereunder (in any or all of which cases WWAP
            nonetheless shall remain responsible for the performance of all of
            its obligations hereunder) and (b) WWAP may create a Security
            Interest upon its rights and interest hereunder in favour of a
            financing institution.

      11.4  This Agreement may be executed in one or more counterparts, each of
            which shall be deemed an original but all of which together will
            constitute one and the same instrument.

      11.5  All notices, requests, demands, claims, and other communications
            hereunder will be in writing. Any notice, request, demand, claim or
            other communication hereunder shall be deemed duly given (a) on the
            date of delivery, if personally delivered, (b) 5 Business Days after
            it is sent by registered or certified mail, return receipt
            requested, postage prepaid, and addressed to the intended recipient
            as set forth above, (c) if sent by fax or e-mail - on the date sent,
            provided that evidence of its receipt is shown. Any party may change
            the address to which notices, requests, demands, claims, and other
            communications hereunder are to be delivered by giving the other
            parties notice in the manner herein set forth.

      11.6  No amendment of any provision of this Agreement shall be valid
            unless the same shall be in writing and signed by both parties. No
            waiver by any party of any default, misrepresentation or breach of
            warranty or covenant hereunder, whether intentional or not, shall be
            deemed to extend to any prior or subsequent default,
            misrepresentation or breach of warranty or covenant hereunder or
            affect in any way any rights arising of any prior or subsequent such
            occurrence.

                                       10
<PAGE>

Exhibit 10.2 - Collaboration Agreement

      11.7  Any term or provision of this Agreement that is invalid or
            unenforceable in any situation in any jurisdiction shall not affect
            the validity or enforceability of the remaining terms and provisions
            hereof or the validity or enforceability of the offending term or
            provision in any other situation or in any other jurisdiction.

      11.8  Each of the parties to this Agreement shall bear his or its own
            costs and expenses (including legal fees and expenses).

IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the
date set forth above.

     ACTIVEPOINT LTD.                                 WWAP

     By: /s/ Rhona Morris                             By: /s/ Moshe Ofer
         ----------------                                 --------------
     Title: Business Development                      Title: President

                                       11EXHIBIT 10.3 - SECURITIES PURCHASE AGREEMENT

                          SECURITIES PURCHASE AGREEMENT

         THIS SECURITIES PURCHASE AGREEMENT (this "AGREEMENT") dated as of
August 26, 2004 by and among WWAP, INC., a Delaware corporation (the "COMPANY"),
and the Buyers listed on Schedule I attached hereto (individually, a "BUYER" or
collectively "BUYERS").

                                   WITNESSETH:

         WHEREAS, the Company and the Buyer(s) are executing and delivering this
Agreement in reliance upon an exemption from securities registration pursuant to
Section 4(2) and/or Rule 506 of Regulation D ("REGULATION D") as promulgated by
the U.S. Securities and Exchange Commission (the "SEC") under the Securities Act
of 1933, as amended (the "1933 ACT");

         WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to the Buyer(s),
as provided herein, and the Buyer(s) shall purchase up to $500,000 of secured
convertible debentures (the "CONVERTIBLE DEBENTURES"), which shall be
convertible into shares of the Company's common stock, par value $0.01 (the
"COMMON STOCK") (as converted, the "CONVERSION SHARES") of which $75,000 shall
be funded within five (5) business days following the completion of the
acquisition by WVAP of 100% of the stock of Active Point, Ltd. through an
exchange offer (the "EXCHANGE OFFER") (the "FIRST CLOSING"), and the remaining
balance shall be funded within five (5) business days after the filing of a
registration statement (the "REGISTRATION STATEMENT") pursuant the Investor
Registration Rights Agreement of even date herewith, with the United States
Securities and Exchange Commission (the "SEC") (the "SECOND CLOSING") for a
total purchase price of up to $500,000 (the "PURCHASE PRICE") in the respective
amounts set forth opposite each Buyer(s) name on Schedule I (the "SUBSCRIPTION
AMOUNT"); and

         WHEREAS, contemporaneously with the execution and delivery of this
Agreement, the parties hereto are executing and delivering a Registration Rights
Agreement (the "INVESTOR REGISTRATION RIGHTS AGREEMENT") pursuant to which the
Company has agreed to provide certain registration rights under the 1933 Act and
the rules and regulations promulgated there under, and applicable state
securities laws; and

         WHEREAS, the aggregate proceeds of the sale of the Convertible
Debentures contemplated hereby shall be held in escrow pursuant to the terms of
an Escrow Agreement (the "ESCROW AGREEMENT") of even date herewith.

         WHEREAS, contemporaneously with the execution and delivery of this
Agreement, the parties hereto are executing and delivering Irrevocable Transfer
Agent Instructions (the "IRREVOCABLE TRANSFER AGENT INSTRUCTIONS").

         WHEREAS, contemporaneously with the execution and delivery of this
Agreement, the parties hereto are executing and delivering a Security Agreement
(the "SECURITY AGREEMENT") pursuant to which the Company has agreed to provide
the Buyer a security interest in Pledged
<PAGE>

Collateral (as this term is defined in the Security Agreement) to secure
Company's obligations under this Agreement, the Convertible Debenture, the
Investor Registration Rights Agreement, the Irrevocable Transfer Agent
Instructions, the Security Agreement or any other obligations of the Company to
the Investor.

         NOW, THEREFORE, in consideration of the mutual covenants and other
agreements contained in this Agreement the Company and the Buyer(s)hereby agree
as follows:

         1. PURCHASE AND SALE OF CONVERTIBLE DEBENTURES.

                  (a) PURCHASE OF CONVERTIBLE DEBENTURES. Subject to the
satisfaction (or waiver) of the terms and conditions of this Agreement, each
Buyer agrees, severally and not jointly, to purchase at each Closing and the
Company agrees to sell and issue to each Buyer, severally and not jointly, at
each Closing, Convertible Debentures in amounts corresponding with the
Subscription Amount set forth opposite each Buyer's name on Schedule I hereto.
Upon execution hereof by a Buyer, the Buyer shall wire transfer the Subscription
Amount set forth opposite his name on Schedule I in same-day funds or a check
payable to "Butler Gonzalez LLP, as Escrow Agent for WWAP, Inc./Cornell Capital
Partners, LP", which Subscription Amount shall be held in escrow pursuant to the
terms of the Escrow Agreement (as hereinafter defined) and disbursed in
accordance therewith.

                  (b) CLOSING DATE. The First Closing of the purchase and sale
of the Convertible Debentures shall take place on or before the fifth (5th)
business day following the completion of the acquisition by WVAP of a minimum of
100% of the stock of Active Point, Ltd. through the Exchange Offer, subject to
notification of satisfaction of the conditions to the First Closing set forth
herein and in Sections 6 and 7 below (or such later date as is mutually agreed
to by the Company and the Buyer(s)) (the "FIRST CLOSING DATE") and the Second
Closing of the purchase and sale of the Convertible Debentures shall take place
on or before the fifth (5th) business day after the Registration Statement is
filed with the SEC, subject to notification of satisfaction of the conditions to
the Second Closing set forth herein and in Sections 6 and 7 below (or such later
date as is mutually agreed to by the Company and the Buyer(s)) (the "SECOND
CLOSING DATE") (collectively referred to a the "CLOSING DATES"). The Closing
shall occur on the respective Closing Dates at the offices of Butler Gonzalez,
LLP, 1418 Morris Avenue, Suite 207, Union, NJ 07083 (or such other place as is
mutually agreed to by the Company and the Buyer(s)).

                  (c) ESCROW ARRANGEMENTS; FORM OF PAYMENT. Upon execution
hereof by Buyer(s) and pending the Closings, the aggregate proceeds of the sale
of the Convertible Debentures to Buyer(s) pursuant hereto shall be deposited in
a non-interest bearing escrow account with Butler Gonzalez LLP, as escrow agent
(the "ESCROW AGENT"), pursuant to the terms of the Escrow Agreement. Subject to
the satisfaction of the terms and conditions of this Agreement, on the Closing
Dates, (i) the Escrow Agent shall deliver to the Company in accordance with the
terms of the Escrow Agreement such aggregate proceeds for the Convertible
Debentures to be issued and sold to such Buyer(s) of $75,000 on the First
Closing Date and $425,000 on the Second Closing Date, minus a structuring fee of
$60,000 to the Buyer pursuant to Section 4(g) hereof, of which $9,000 shall be
deducted from the gross proceeds of the First Closing and the balance of $51,000
shall be deducted from the gross proceeds of the Second

                                       2
<PAGE>

Closing, and the commitment fee described in Section 4(g) hereof, of which
$7,500 shall be deducted from the gross proceeds of the First Closing and the
balance of $42,500 shall be deducted from the gross proceeds of the Second
Closing, and (ii) the Company shall deliver to each Buyer, Convertible
Debentures which such Buyer(s) in the aggregate amount of $75,000 on the First
Closing Date and $425,000 on the Second Closing Date is purchasing in amounts
indicated opposite such Buyer's name on Schedule I, duly executed on behalf of
the Company.

                  (d) TERMINATION. This Agreement shall terminate if the
Exchange Offer is not consummated within thirty (30) days of the date hereof.

         2. BUYER'S REPRESENTATIONS AND WARRANTIES.

         Each Buyer represents and warrants, severally and not jointly, that:

                  (a) INVESTMENT PURPOSE. Each Buyer is acquiring the
Convertible Debentures and, upon conversion of Convertible Debentures, the Buyer
will acquire the Conversion Shares then issuable, for its own account for
investment only and not with a view towards, or for resale in connection with,
the public sale or distribution thereof, except pursuant to sales registered or
exempted under the 1933 Act; provided, however, that by making the
representations herein, such Buyer reserves the right to dispose of the
Conversion Shares at any time in accordance with or pursuant to an effective
registration statement covering such Conversion Shares or an available exemption
under the 1933 Act.

                  (b) ACCREDITED INVESTOR STATUS. Each Buyer is an "ACCREDITED
INVESTOR" as that term is defined in Rule 501(a)(3) of Regulation D.

                  (c) RELIANCE ON EXEMPTIONS. Each Buyer understands that the
Convertible Debentures are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state
securities laws and that the Company is relying in part upon the truth and
accuracy of, and such Buyer's compliance with, the representations, warranties,
agreements, acknowledgments and understandings of such Buyer set forth herein in
order to determine the availability of such exemptions and the eligibility of
such Buyer to acquire such securities.

                  (d) INFORMATION. Each Buyer and its advisors (and his or, its
counsel), if any, have been furnished with all materials relating to the
business, finances and operations of the Company and information he deemed
material to making an informed investment decision regarding his purchase of the
Convertible Debentures and the Conversion Shares, which have been requested by
such Buyer. Each Buyer and its advisors, if any, have been afforded the
opportunity to ask questions of the Company and its management. Neither such
inquiries nor any other due diligence investigations conducted by such Buyer or
its advisors, if any, or its representatives shall modify, amend or affect such
Buyer's right to rely on the Company's representations and warranties contained
in Section 3 below. Each Buyer understands that its investment in the
Convertible Debentures and the Conversion Shares involves a high degree of risk.
Each Buyer is in a position regarding the Company, which, based upon employment,
family relationship or economic bargaining power, enabled and enables such Buyer
to obtain information from the Company in order to evaluate the merits and risks
of this investment. Each

                                       3
<PAGE>

Buyer has sought such accounting, legal and tax advice, as it has considered
necessary to make an informed investment decision with respect to its
acquisition of the Convertible Debentures and the Conversion Shares.

                  (e) NO GOVERNMENTAL REVIEW. Each Buyer understands that no
United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the
Convertible Debentures or the Conversion Shares, or the fairness or suitability
of the investment in the Convertible Debentures or the Conversion Shares, nor
have such authorities passed upon or endorsed the merits of the offering of the
Convertible Debentures or the Conversion Shares.

                  (f) TRANSFER OR RESALE. Each Buyer understands that except as
provided in the Investor Registration Rights Agreement: (i) the Convertible
Debentures have not been and are not being registered under the 1933 Act or any
state securities laws, and may not be offered for sale, sold, assigned or
transferred unless (A) subsequently registered thereunder, or (B) such Buyer
shall have delivered to the Company an opinion of counsel, in a generally
acceptable form, to the effect that such securities to be sold, assigned or
transferred may be sold, assigned or transferred pursuant to an exemption from
such registration requirements; (ii) any sale of such securities made in
reliance on Rule 144 under the 1933 Act (or a successor rule thereto) ("RULE
144") may be made only in accordance with the terms of Rule 144 and further, if
Rule 144 is not applicable, any resale of such securities under circumstances in
which the seller (or the person through whom the sale is made) may be deemed to
be an underwriter (as that term is defined in the 1933 Act) may require
compliance with some other exemption under the 1933 Act or the rules and
regulations of the SEC thereunder; and (iii) neither the Company nor any other
person is under any obligation to register such securities under the 1933 Act or
any state securities laws or to comply with the terms and conditions of any
exemption thereunder. The Company reserves the right to place stop transfer
instructions against the shares and certificates for the Conversion Shares.

                  (g) LEGENDS. Each Buyer understands that the certificates or
other instruments representing the Convertible Debentures and or the Conversion
Shares shall bear a restrictive legend in substantially the following form (and
a stop transfer order may be placed against transfer of such stock
certificates):

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
                  APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN
                  ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW
                  TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD,
                  TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
                  REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS,
                  OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT

                                       4
<PAGE>

                  REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE
                  STATE SECURITIES LAWS.

The legend set forth above shall be removed and the Company within two (2)
business days shall issue a certificate without such legend to the holder of the
Conversion Shares upon which it is stamped, if, unless otherwise required by
state securities laws, (i) in connection with a sale transaction, provided the
Conversion Shares are registered under the 1933 Act or (ii) in connection with a
sale transaction, after such holder provides the Company with an opinion of
counsel, which opinion shall be in form, substance and scope customary for
opinions of counsel in comparable transactions, to the effect that a public
sale, assignment or transfer of the Conversion Shares may be made without
registration under the 1933 Act.

                  (h) AUTHORIZATION, ENFORCEMENT. This Agreement has been duly
and validly authorized, executed and delivered on behalf of such Buyer and is a
valid and binding agreement of such Buyer enforceable in accordance with its
terms, except as such enforceability may be limited by general principles of
equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the
enforcement of applicable creditors' rights and remedies.

                  (i) RECEIPT OF DOCUMENTS. Each Buyer and his or its counsel
has received and read in their entirety: (i) this Agreement and each
representation, warranty and covenant set forth herein, the Security Agreement,
the Investor Registration Rights Agreement, the Escrow Agreement, and the
Irrevocable transfer Agent Instructions; (ii) all due diligence and other
information necessary to verify the accuracy and completeness of such
representations, warranties and covenants; (iii) answers to all questions each
Buyer submitted to the Company regarding an investment in the Company; and each
Buyer has relied on the information contained therein and has not been furnished
any other documents, literature, memorandum or prospectus.

                  (j) DUE FORMATION OF CORPORATE AND OTHER BUYERS. If the
Buyer(s) is a corporation, trust, partnership or other entity that is not an
individual person, it has been formed and validly exists and has not been
organized for the specific purpose of purchasing the Convertible Debentures and
is not prohibited from doing so.

                  (k) NO LEGAL ADVICE FROM THE COMPANY. Each Buyer acknowledges
that it had the opportunity to review this Agreement and the transactions
contemplated by this Agreement with his or its own legal counsel and investment
and tax advisors. Each Buyer is relying solely on such counsel and advisors and
not on any statements or representations of the Company or any of its
representatives or agents for legal, tax or investment advice with respect to
this investment, the transactions contemplated by this Agreement or the
securities laws of any jurisdiction.

                  (l) No Buyer makes any representation or warranty regarding
the Company's ability to successfully become a public company or to have any
registration statement filed by the Company pursuant to the Registration Rights
Agreement or otherwise declared effective by the SEC. The Company has the sole
obligation to make any and all such filings as may be necessary to become a
public company and to have any registration statement declared effective by the
SEC.

                                       5
<PAGE>

         3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         Except as set forth in the Disclosure Schedule attached as Exhibit "A"
hereto, the Company (which for the purposes of this Section 3 includes the
Company and ActivePoint Ltd.) represents and warrants to and covenants with, the
Buyer that the representation in Section 3(a) (except for the last sentence) and
Section 3(b) are true and correct as of the date hereof and represents and
warrants to, and covenants with, the Buyer that all representations will be true
and correct as of the First Closing Date:

                  (a) ORGANIZATION AND QUALIFICATION. The Company and its
subsidiaries are corporations duly organized and validly existing in good
standing under the laws of the jurisdiction in which they are incorporated, and
have the requisite corporate power to own their properties and to carry on their
business as now being conducted. Each of the Company and its subsidiaries is
duly qualified as a foreign corporation to do business and is in good standing
in every jurisdiction in which the nature of the business conducted by it makes
such qualification necessary, except to the extent that the failure to be so
qualified or be in good standing would not have a material adverse effect on the
Company and its subsidiaries taken as a whole. The Company has one wholly-owned
subsidiary, ActivePoint, Ltd. and has no ownership interest (directly or
indirectly) in any other entity. ActivePoint, Ltd. does not have an ownership
interest (directly or indirectly) in any other entity.

                  (b) AUTHORIZATION, ENFORCEMENT, COMPLIANCE WITH OTHER
INSTRUMENTS. (i) The Company has the requisite corporate power and authority to
enter into and perform this Agreement, the Security Agreement, the Investor
Registration Rights Agreement, the Escrow Agreement, the Irrevocable Transfer
Agent Instructions, and any related agreements, and to issue the Convertible
Debentures and the Conversion Shares in accordance with the terms hereof and
thereof, (ii) the execution and delivery of this Agreement, the Security
Agreement, the Investor Registration Rights Agreement, the Escrow Agreement, the
Irrevocable Transfer Agent Instructions (as defined herein) and any related
agreements by the Company and the consummation by it of the transactions
contemplated hereby and thereby, including, without limitation, the issuance of
the Convertible Debentures the Conversion Shares and the reservation for
issuance and the issuance of the Conversion Shares issuable upon conversion or
exercise thereof, have been duly authorized by the Company's Board of Directors
and no further consent or authorization is required by the Company, its Board of
Directors or its stockholders, (iii) this Agreement, the Security Agreement, the
Investor Registration Rights Agreement, the Escrow Agreement, the Irrevocable
Transfer Agent Instructions and any related agreements have been duly executed
and delivered by the Company, (iv) this Agreement, the Security Agreement, the
Investor Registration Rights Agreement, the Escrow Agreement, the Irrevocable
Transfer Agent Instructions and any related agreements constitute the valid and
binding obligations of the Company enforceable against the Company in accordance
with their terms, except as such enforceability may be limited by general
principles of equity or applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally, the
enforcement of creditors' rights and remedies. The authorized officer of the
Company executing this Agreement, the Security Agreement, the Investor
Registration Rights Agreement, the Escrow Agreement, the Irrevocable Transfer
Agent Instructions and any related agreements knows of no reason why the Company
cannot file the registration statement as

                                       6
<PAGE>

required under the Investor Registration Rights Agreement or perform any of the
Company's other obligations under such documents.

                  (c) CAPITALIZATION. As of the date hereof, the authorized
capital stock of the Company consists of 102,000,000 shares of stock, of which
100,000,000 shares are designated as Common Stock and 2,000,000 shares are
designated Preferred Stock. As of the First Closing Date, the Company had
25,000,000 shares of Common Stock outstanding and no shares of Preferred Stock.
As of the First Closing Date, the authorized capital stock of ActivePoint, Ltd.
shall consist of 420,956 ordinary shares, of which 420,956 ordinary shares shall
be outstanding and all of which are owned by the Company. All of such
outstanding shares have been validly issued and are fully paid and
nonassessable. Except as disclosed in the Disclosure Schedule, no shares of
Common Stock are subject to preemptive rights or any other similar rights or any
liens or encumbrances suffered or permitted by the Company. Except as disclosed
in the Disclosure Schedule, as of the date of this Agreement, (i) there are no
outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company or any of its
subsidiaries, or contracts, commitments, understandings or arrangements by which
the Company or any of its subsidiaries is or may become bound to issue
additional shares of capital stock of the Company or any of its subsidiaries or
options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its subsidiaries, (ii) there
are no outstanding debt securities and (iii) there are no agreements or
arrangements under which the Company or any of its subsidiaries is obligated to
register the sale of any of their securities under the 1933 Act (except pursuant
to the Registration Rights Agreement) and (iv) there are no outstanding
registration statements and there are no outstanding comment letters from the
SEC or any other regulatory agency. There are no securities or instruments
containing anti-dilution or similar provisions that will be triggered by the
issuance of the Convertible Debentures as described in this Agreement. The
Company has furnished to the Buyer true and correct copies of the Company's
Certificate of Incorporation, as amended and as in effect on the date hereof
(the "CERTIFICATE OF INCORPORATION"), and the Company's By-laws, as in effect on
the date hereof (the "BY-LAWS"), and the terms of all securities convertible
into or exercisable for Common Stock and the material rights of the holders
thereof in respect thereto other than stock options issued to employees and
consultants.

                  (d) ISSUANCE OF SECURITIES. The Convertible Debentures are
duly authorized and, upon issuance in accordance with the terms hereof, shall be
duly issued, fully paid and nonassessable, are free from all taxes, liens and
charges with respect to the issue thereof. The Conversion Shares issuable upon
conversion of the Convertible Debentures have been duly authorized and reserved
for issuance. Upon conversion or exercise in accordance with the Convertible
Debentures the Conversion Shares will be duly issued, fully paid and
nonassessable.

                  (e) NO CONFLICTS. Except as disclosed in the Disclosure
Schedule, the execution, delivery and performance of this Agreement, the
Security Agreement, the Investors Registration Rights Agreement, the Escrow
Agreement and the Irrevocable Transfer Agent Instructions by the Company and the
consummation by the Company of the transactions contemplated hereby will not (i)
result in a violation of the Certificate of Incorporation, any certificate of
designations of any outstanding series of preferred stock of the Company or the
By-

                                       7
<PAGE>

laws or (ii) conflict with or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
agreement, indenture or instrument to which the Company or any of its
subsidiaries is a party, or result in a violation of any law, rule, regulation,
order, judgment or decree (including federal and state securities laws and
regulations and the rules and regulations of The National Association of
Securities Dealers Inc.'s OTC Bulletin Board on which the Common Stock is
quoted) applicable to the Company or any of its subsidiaries or by which any
property or asset of the Company or any of its subsidiaries is bound or
affected. Except as disclosed in the Disclosure Schedule, neither the Company
nor its subsidiaries is in violation of any term of or in default under its
Certificate of Incorporation or By-laws or their organizational charter or
by-laws, respectively, or any material contract, agreement, mortgage,
indebtedness, indenture, instrument, judgment, decree or order or any statute,
rule or regulation applicable to the Company or its subsidiaries. The business
of the Company and its subsidiaries is not being conducted, and shall not be
conducted in violation of any material law, ordinance, or regulation of any
governmental entity. Except as specifically contemplated by this Agreement and
as required under the 1933 Act and any applicable state securities laws, the
Company is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court or governmental agency in order
for it to execute, deliver or perform any of its obligations under or
contemplated by this Agreement or the Registration Rights Agreement in
accordance with the terms hereof or thereof. Except as disclosed in the
Disclosure Schedule, all consents, authorizations, orders, filings and
registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof. The
Company and its subsidiaries are unaware of any facts or circumstance, which
might give rise to any of the foregoing.

                  (f) FINANCIAL STATEMENTS. As of their respective dates, the
financial statements of the Company (the "FINANCIAL STATEMENTS") for the two
most recently completed fiscal years and any subsequent interim period complied
as to form in all material respects with applicable accounting requirements and
the published rules and regulations of the SEC with respect thereto. Such
financial statements have been prepared in accordance with generally accepted
accounting principles, consistently applied, during the periods involved (except
(i) as may be otherwise indicated in such Financial Statements or the notes
thereto, or (ii) in the case of unaudited interim statements, to the extent they
may exclude footnotes or may be condensed or summary statements) and, fairly
present in all material respects the financial position of the Company as of the
dates thereof and the results of its operations and cash flows for the periods
then ended (subject, in the case of unaudited statements, to normal year-end
audit adjustments). No other information provided by or on behalf of the Company
to the Buyer, including, without limitation, information referred to in this
Agreement, contains any untrue statement of a material fact or omits to state
any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading.

                  (g) ABSENCE OF LITIGATION. Except as disclosed in the
Disclosure Schedule, there is no action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency,
self-regulatory organization or body pending against or affecting the Company,
the Common Stock or any of the Company's subsidiaries, wherein an unfavorable
decision, ruling or finding would (i) have a material adverse effect on the
transactions contemplated hereby (ii) adversely affect the validity or
enforceability of, or the authority or

                                       8
<PAGE>

ability of the Company to perform its obligations under, this Agreement or any
of the documents contemplated herein, or (iii) except as expressly disclosed in
the Disclosure Schedule, have a material adverse effect on the business,
operations, properties, financial condition or results of operations of the
Company and its subsidiaries taken as a whole.

                  (h) ACKNOWLEDGMENT REGARDING BUYER'S PURCHASE OF THE
CONVERTIBLE DEBENTURES. The Company acknowledges and agrees that the Buyer(s) is
acting solely in the capacity of an arm's length purchaser with respect to this
Agreement and the transactions contemplated hereby. The Company further
acknowledges that the Buyer(s) is not acting as a financial advisor or fiduciary
of the Company (or in any similar capacity) with respect to this Agreement and
the transactions contemplated hereby and any advice given by the Buyer(s) or any
of their respective representatives or agents in connection with this Agreement
and the transactions contemplated hereby is merely incidental to such Buyer's
purchase of the Convertible Debentures or the Conversion Shares. The Company
further represents to the Buyer that the Company's decision to enter into this
Agreement has been based solely on the independent evaluation by the Company and
its representatives.

                  (i) NO GENERAL SOLICITATION. Neither the Company, nor any of
its affiliates, nor 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 1933 Act) in connection with the offer or sale of the
Convertible Debentures or the Conversion Shares.

                  (j) NO INTEGRATED OFFERING. Neither the Company, nor any of
its affiliates, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would require registration of the
Convertible Debentures or the Conversion Shares under the 1933 Act or cause this
offering of the Convertible Debentures or the Conversion Shares to be integrated
with prior offerings by the Company for purposes of the 1933 Act.

                  (k) EMPLOYEE RELATIONS. Neither the Company nor any of its
subsidiaries is involved in any labor dispute nor, to the knowledge of the
Company or any of its subsidiaries, is any such dispute threatened. None of the
Company's or its subsidiaries' employees is a member of a union and the Company
and its subsidiaries believe that their relations with their employees are good.

                  (l) INTELLECTUAL PROPERTY RIGHTS. The Company and its
subsidiaries own or possess adequate rights or licenses to use all trademarks,
trade names, service marks, service mark registrations, service names, patents,
patent rights, copyrights, inventions, licenses, approvals, governmental
authorizations, trade secrets and rights necessary to conduct their respective
businesses as now conducted. The Company and its subsidiaries do not have any
knowledge of any infringement by the Company or its subsidiaries of trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses,
service names, service marks, service mark registrations, trade secret or other
similar rights of others, and, to the knowledge of the Company there is no
claim, action or proceeding being made or brought against, or to the Company's
knowledge, being threatened against, the Company or its subsidiaries regarding
trademark, trade name, patents, patent rights, invention, copyright, license,
service names, service marks, service mark registrations, trade secret or other
infringement; and the Company

                                       9
<PAGE>

and its subsidiaries are unaware of any facts or circumstances which might give
rise to any of the foregoing.

                  (m) ENVIRONMENTAL LAWS. The Company and its subsidiaries are
(i) in compliance with any and all applicable foreign, federal, state and local
laws and regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or
contaminants ("ENVIRONMENTAL LAWS"), (ii) have received all permits, licenses or
other approvals required of them under applicable Environmental Laws to conduct
their respective businesses and (iii) are in compliance with all terms and
conditions of any such permit, license or approval.

                  (n) TITLE. Any real property and facilities held under lease
by the Company and its subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as are not material and do not interfere
with the use made and proposed to be made of such property and buildings by the
Company and its subsidiaries.

                  (o) INSURANCE. The Company and each of its subsidiaries are
insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as management of the Company believes to be
prudent and customary in the businesses in which the Company and its
subsidiaries are engaged. Neither the Company nor any such subsidiary has been
refused any insurance coverage sought or applied for and neither the Company nor
any such subsidiary has any reason to believe that it will not be able to renew
its existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business at a cost that would not materially and adversely affect the condition,
financial or otherwise, or the earnings, business or operations of the Company
and its subsidiaries, taken as a whole.

                  (p) REGULATORY PERMITS. The Company and its subsidiaries
possess all material certificates, authorizations and permits issued by the
appropriate federal, state or foreign regulatory authorities necessary to
conduct their respective businesses, and neither the Company nor any such
subsidiary has received any notice of proceedings relating to the revocation or
modification of any such certificate, authorization or permit.

                  (q) INTERNAL ACCOUNTING CONTROLS. The Company and each of its
subsidiaries maintain a system of internal accounting controls sufficient to
provide reasonable assurance that (i) transactions are executed in accordance
with management's general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in
conformity with generally accepted accounting principles and to maintain asset
accountability, and (iii) the recorded amounts for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with
respect to any differences.

                  (r) NO MATERIAL ADVERSE BREACHES, ETC. Except as set forth in
the Disclosure Schedule, neither the Company nor any of its subsidiaries is
subject to any charter, corporate or other legal restriction, or any judgment,
decree, order, rule or regulation which in the judgment of the Company's
officers has or is expected in the future to have a material adverse effect on
the business, properties, operations, financial condition, results of operations
or prospects of the Company or its subsidiaries. Except as set forth in the
Disclosure Schedule, neither the

                                       10
<PAGE>

Company nor any of its subsidiaries is in breach of any contract or agreement
which breach, in the judgment of the Company's officers, has or is expected to
have a material adverse effect on the business, properties, operations,
financial condition, results of operations or prospects of the Company or its
subsidiaries.

                  (s) TAX STATUS. Except as set forth in the Disclosure
Schedule, the Company and each of its subsidiaries has made and filed all
federal and state income and all other tax returns, reports and declarations
required by any jurisdiction to which it is subject and (unless and only to the
extent that the Company and each of its subsidiaries has set aside on its books
provisions reasonably adequate for the payment of all unpaid and unreported
taxes) has paid all taxes and other governmental assessments and charges that
are material in amount, shown or determined to be due on such returns, reports
and declarations, except those being contested in good faith and has set aside
on its books provision reasonably adequate for the payment of all taxes for
periods subsequent to the periods to which such returns, reports or declarations
apply. There are no unpaid taxes in any material amount claimed to be due by the
taxing authority of any jurisdiction, and the officers of the Company know of no
basis for any such claim.

                  (t) CERTAIN TRANSACTIONS. Except as set forth in the
Disclosure Schedule, and except for arm's length transactions pursuant to which
the Company makes payments in the ordinary course of business upon terms no less
favorable than the Company could obtain from third parties and other than the
grant of stock options disclosed in the Disclosure Schedule, none of the
officers, directors, or employees of the Company is presently a party to any
transaction with the Company (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for
the furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any corporation,
partnership, trust or other entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or
partner.

                  (u) FEES AND RIGHTS OF FIRST REFUSAL. The Company is not
obligated to offer the securities offered hereunder on a right of first refusal
basis or otherwise to any third parties including, but not limited to, current
or former shareholders of the Company, underwriters, brokers, agents or other
third parties.

                  (v) The Company acknowledges that the Buyer is relying on the
representations and warranties made by the Company hereunder and that such
representations and warranties are a material inducement to the Buyer purchasing
the Convertible Debentures. The Company further acknowledges that without such
representations and warranties of the Company made hereunder, the Buyer would
not enter into this Agreement.

         4. COVENANTS.

                  (a) BEST EFFORTS. Each party shall use its best efforts timely
to satisfy each of the conditions to be satisfied by it as provided in Sections
6 and 7 of this Agreement.

                  (b) FORM D. The Company agrees to file a Form D with respect
to the Conversion Shares as required under Regulation D and to provide a copy
thereof to each Buyer

                                       11
<PAGE>

promptly after such filing. The Company shall, on or before the Closing Date,
take such action as the Company shall reasonably determine is necessary to
qualify the Conversion Shares, or obtain an exemption for the Conversion Shares
for sale to the Buyers at the Closing pursuant to this Agreement under
applicable securities or "BLUE SKY" laws of the states of the United States, and
shall provide evidence of any such action so taken to the Buyers on or prior to
the Closing Date.

                  (c) REPORTING STATUS. Commencing on the effectiveness of the
registration statement filed with the SEC pursuant to the Investor Registration
Rights Agreement and until the earlier of (i) the date as of which the Buyer(s)
may sell all of the Conversion Shares without restriction pursuant to Rule
144(k) promulgated under the 1933 Act (or successor thereto), or (ii) the date
on which (A) the Buyer(s) shall have sold all the Conversion Shares and (B) none
of the Convertible Debentures are outstanding (the "REGISTRATION PERIOD"), the
Company shall file in a timely manner all reports required to be filed with the
SEC pursuant to the 1934 Act and the regulations of the SEC thereunder, and the
Company shall not terminate its status as an issuer required to file reports
under the 1934 Act even if the 1934 Act or the rules and regulations thereunder
would otherwise permit such termination.

                  (d) USE OF PROCEEDS. The Company will use the proceeds from
the sale of the Convertible Debentures for general corporate and working capital
purposes.

                  (e) RESERVATION OF SHARES. The Company shall take all action
reasonably necessary to at all times have authorized, and reserved for the
purpose of issuance, such number of shares of Common Stock as shall be necessary
to effect the issuance of the Conversion Shares. If at any time the Company does
not have available such shares of Common Stock as shall from time to time be
sufficient to effect the conversion of all of the Conversion Shares of the
Company shall call and hold a special meeting of the shareholders within sixty
(60) days of such occurrence, for the sole purpose of increasing the number of
shares authorized. The Company's management shall recommend to the shareholders
to vote in favor of increasing the number of shares of Common Stock authorized.
Management shall also vote all of its shares in favor of increasing the number
of authorized shares of Common Stock.

                  (f) LISTINGS OR QUOTATION. The Company shall, concurrently
with the effectiveness of the registration statement filed with the SEC pursuant
to the Investor Registration Rights Agreement, secure the listing or quotation
of its Common Stock (including, without limitation, the Conversion Shares) upon
a national securities exchange, automated quotation system or the
Over-The-Counter Bulletin Board ("OTCBB") maintained by the National Association
of Securities Dealers, Inc. The Company shall maintain the listing or quotation
of the Common Stock for so long as the Investor is the beneficial owner of any
Common Stock or Conversion Shares (whether obtained or to be obtained under this
Agreement, the Convertible Debentures or any other agreement between the Company
and the Buyer. The Company shall maintain the Common Stock's authorization for
quotation on the OTCBB. It shall be an event of default hereunder if the Company
fails to strictly comply with its obligations under this Section 4(f).

                  (g) FEES AND EXPENSES. Except as set forth below, each of the
Company and the Buyer(s) shall pay all costs and expenses incurred by such party
in connection with the

                                       12
<PAGE>

negotiation, investigation, preparation, execution and delivery of this
Agreement, the Escrow Agreement, the Investor Registration Rights Agreement, the
Security Agreement and the Irrevocable Transfer Agent Instructions. The Buyer(s)
shall be entitled to a commitment fee of ten percent (10%) on the Purchase
Price.

         In connection with this transaction, the Company shall pay to the Buyer
a structuring fee of Sixty Thousand Dollars $60,000 (the "STRUCTURING FEE"). The
Structuring Fee shall be paid pro rata (based on the gross proceeds to be funded
on each Closing) directly from the gross proceeds of the Closings and shall be
deemed fully earned on the date hereof. The Company shall be solely responsible
for the contents of any such registration statement, prospectus or other filing
made with the SEC or otherwise used in the offering of the Company's securities
(except as such disclosure relates solely to the Investor and then only to the
extent that such disclosure conforms with information furnished in writing by
the Investor to the Company), even if the Buyer or its agents as an
accommodation to the Company participate or assist in the preparation of such
registration statement, prospectus or other SEC filing. The Company shall retain
its own legal counsel to review, edit, confirm and do all things such counsel
deems necessary or desirable to such registration statement, prospectus or other
SEC filing to ensure that it does not contain an untrue statement or alleged
untrue statement of material fact or omit or alleged to omit a material fact
necessary to make the statements made therein, in light of the circumstances
under which the statements were made, not misleading.

                  (h) CORPORATE EXISTENCE. So long as any of the Convertible
Debentures remain outstanding, the Company shall not directly or indirectly
consummate any merger, reorganization, restructuring, reverse stock split
consolidation, sale of all or substantially all of the Company's assets or any
similar transaction or related transactions (each such transaction, an
"ORGANIZATIONAL CHANGE") unless, prior to the consummation an Organizational
Change, the Company obtains the written consent of each Buyer. In any such case,
the Company will make appropriate provision with respect to such holders' rights
and interests to insure that the provisions of this Section 4(h) will thereafter
be applicable to the Convertible Debentures.

                  (i) TRANSACTIONS WITH AFFILIATES. So long as any Convertible
Debentures are outstanding, the Company shall not, and shall cause each of its
subsidiaries not to, enter into, amend, modify or supplement, or permit any
subsidiary to enter into, amend, modify or supplement any agreement,
transaction, commitment, or arrangement with any of its or any subsidiary's
officers, directors, person who were officers or directors at any time during
the previous two (2) years, stockholders who beneficially own five percent (5%)
or more of the Common Stock, or Affiliates (as defined below) or with any
individual related by blood, marriage, or adoption to any such individual or
with any entity in which any such entity or individual owns a five percent (5%)
or more beneficial interest (each a "RELATED PARTY"), except for (a) customary
employment arrangements and benefit programs on reasonable terms, (b) any
investment in an Affiliate of the Company, (c) any agreement, transaction,
commitment, or arrangement on an arms-length basis on terms no less favorable
than terms which would have been obtainable from a person other than such
Related Party, (d) any agreement transaction, commitment, or arrangement which
is approved by a majority of the disinterested directors of the Company, for
purposes hereof, any director who is also an officer of the Company or any
subsidiary of the Company shall not be a disinterested director with respect to
any such agreement, transaction, commitment, or arrangement. "AFFILIATE" for
purposes hereof means,

                                       13
<PAGE>

with respect to any person or entity, another person or entity that, directly or
indirectly, (i) has a ten percent (10%) or more equity interest in that person
or entity, (ii) has ten percent (10%) or more common ownership with that person
or entity, (iii) controls that person or entity, or (iv) shares common control
with that person or entity. "CONTROL" or "CONTROLS" for purposes hereof means
that a person or entity has the power, direct or indirect, to conduct or govern
the policies of another person or entity.

                  (j) TRANSFER AGENT. The Company covenants and agrees that, in
the event that the Company's agency relationship with the transfer agent should
be terminated for any reason prior to a date which is two (2) years after the
Closing Date, the Company shall immediately appoint a new transfer agent and
shall require that the new transfer agent execute and agree to be bound by the
terms of the Irrevocable Transfer Agent Instructions (as defined herein).

                  (k) RESTRICTION ON ISSUANCE OF THE CAPITAL STOCK. So long as
any Convertible Debentures are outstanding, the Company shall not, without the
prior written consent of the Buyer(s), issue or sell shares of Common Stock or
Preferred Stock (i) without consideration or for a consideration per share less
than the Bid Price of the Common Stock determined immediately prior to its
issuance, (ii) any warrant, option, right, contract, call, or other security
instrument granting the holder thereof, the right to acquire Common Stock
without consideration or for a consideration less than such Common Stock's Bid
Price value determined immediately prior to it's issuance, (iii) enter into any
security instrument granting the holder a security interest in any and all
assets of the Company, or (iv) file any registration statement on Form S-8,
except with respect to a bona fide stock incentive plan pursuant to which no
more than 10% of the Company's outstanding shares of Common Stock may be issued
thereunder and which otherwise complies with the provisions of this Section
4(k).

         5. TRANSFER AGENT INSTRUCTIONS.

         The Company shall issue the Irrevocable Transfer Agent Instructions to
its transfer agent irrevocably appointing Butler Gonzalez LLP as its agent for
purpose of having certificates issued, registered in the name of the Buyer(s) or
its respective nominee(s), for the Conversion Shares representing such amounts
of Convertible Debentures as specified from time to time by the Buyer(s) to the
Company upon conversion of the Convertible Debentures, for interest owed
pursuant to the Convertible Debenture, and for any and all Liquidated Damages
(as this term is defined in the Investor Registration Rights Agreement). Butler
Gonzalez LLP shall be paid a cash fee of Fifty Dollars ($50) for every occasion
they act pursuant to the Irrevocable Transfer Agent Instructions. The Company
shall not change its transfer agent without the express written consent of the
Buyer(s), which may be withheld by the Buyer(s) in its sole discretion. Prior to
registration of the Conversion Shares under the 1933 Act, all such certificates
shall bear the restrictive legend specified in Section 2(g) of this Agreement.
The Company warrants that no instruction other than the Irrevocable Transfer
Agent Instructions referred to in this Section 5, and stop transfer instructions
to give effect to Section 2(g) hereof (in the case of the Conversion Shares
prior to registration of such shares under the 1933 Act) will be given by the
Company to its transfer agent and that the Conversion Shares shall otherwise be
freely transferable on the books and records of the Company as and to the extent
provided in this Agreement and the Investor Registration Rights Agreement.
Nothing in this Section 5 shall affect in any way the Buyer's obligations and
agreement to comply with all applicable securities laws upon resale of

                                       14
<PAGE>

Conversion Shares. If the Buyer(s) provides the Company with an opinion of
counsel, in form, scope and substance customary for opinions of counsel in
comparable transactions to the effect that registration of a resale by the
Buyer(s) of any of the Conversion Shares is not required under the 1933 Act, the
Company shall within two (2) business days instruct its transfer agent to issue
one or more certificates in such name and in such denominations as specified by
the Buyer. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Buyer by vitiating the intent and
purpose of the transaction contemplated hereby. Accordingly, the Company
acknowledges that the remedy at law for a breach of its obligations under this
Section 5 will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of the provisions of this Section 5, that the Buyer(s)
shall be entitled, in addition to all other available remedies, to an injunction
restraining any breach and requiring immediate issuance and transfer, without
the necessity of showing economic loss and without any bond or other security
being required.

         6. CONDITIONS TO THE COMPANY'S OBLIGATION TO SELLER.

         The obligation of the Company hereunder to issue and sell the
Convertible Debentures to the Buyer(s) at the Closings is subject to the
satisfaction, at or before the Closing Dates, of each of the following
conditions, provided that these conditions are for the Company's sole benefit
and may be waived by the Company at any time in its sole discretion:

                  (a) Each Buyer shall have executed this Agreement, the
Security Agreement, the Escrow Agreement and the Investor Registration Rights
Agreement and the Irrevocable Transfer Agent Instructions and delivered the same
to the Company.

                  (b) The Buyer(s) shall have delivered to the Escrow Agent the
Purchase Price for Convertible Debentures in respective amounts as set forth
next to each Buyer as outlined on Schedule I attached hereto and the Escrow
Agent shall have delivered the net proceeds to the Company by wire transfer of
immediately available U.S. funds pursuant to the wire instructions provided by
the Company.

                  (c) The representations and warranties of the Buyer(s) shall
be true and correct in all material respects as of the date when made and as of
the Closing Dates as though made at that time (except for representations and
warranties that speak as of a specific date), and the Buyer(s) shall have
performed, satisfied and complied in all material respects with the covenants,
agreements and conditions required by this Agreement to be performed, satisfied
or complied with by the Buyer(s) at or prior to the Closing Dates.

                  (d) The Company shall have filed a form UCC -1 with regard to
the Pledged Property and Pledged Collateral as detailed in the Security
Agreement dated the date hereof and provided proof of such filing to the
Buyer(s).

         7. CONDITIONS TO THE BUYER'S OBLIGATION TO PURCHASE.

         The obligation of the Buyer(s) hereunder to purchase the Convertible
Debentures at the Closing is subject to the satisfaction, at or before the
Closing Date, of each of the following conditions, provided that these
conditions are for the Buyer's sole benefit and may be waived by the Buyer(s) at
any time in its sole discretion:

                                       15
<PAGE>

                  (a) The Company shall have executed this Agreement, the
Security Agreement, the Convertible Debenture, the Escrow Agreement, the
Investor Registration Rights Agreement, and delivered the same to the Buyer(s).

                  (b) With regard to the First Closing, the Company shall have
(i) consummated the Exchange Offer and (ii) delivered the Irrevocable Transfer
Agent Instructions in form and substance satisfactory to the Buyer, shall have
been delivered to and acknowledged in writing by the Company's transfer agent.

                  (c) With regard to the Second Closing, the Company shall have
filed a registration statement with the SEC as described in the Investor
Registration Rights Agreement.

                  (d) The representations and warranties of the Company shall be
true and correct in all material respects (except to the extent that any of such
representations and warranties is already qualified as to materiality in Section
3 above, in which case, such representations and warranties shall be true and
correct without further qualification) as of the date when made and as of the
Closing Dates as though made at that time and the Company shall have performed,
satisfied and complied in all material respects with the covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing Dates. If requested by the Buyer,
the Buyer shall have received a certificate, executed by the President of the
Company, dated as of the Closing Dates, to the foregoing effect and as to such
other matters as may be reasonably requested by the Buyer including, without
limitation an update as of the Closing Dates regarding the representation
contained in Section 3(c) above.

                  (e) The Company shall have executed and delivered to the
Buyer(s) the Convertible Debentures in the respective amounts set forth opposite
each Buyer(s) name on Schedule I attached hereto.

                  (f) The Buyer(s) shall have received an opinion of counsel in
a form satisfactory to the Buyer(s).

                  (g) The Company shall have provided to the Buyer(s) a
certificate of good standing from the Secretary of State of Delaware.

                  (h) As of each Closing Date, the Company shall have reserved
out of its authorized and unissued Common Stock, solely for the purpose of
effecting the conversion of the Convertible Debentures, shares of Common Stock
to effect the conversion of all of the Conversion Shares then outstanding.

                  (i) The Irrevocable Transfer Agent Instructions, in form and
substance satisfactory to the Buyer, shall have been delivered to and
acknowledged in writing by the Company's transfer agent.

                  (j) The Company shall have provided to the Investor an
acknowledgement, to the satisfaction of the Investor, from Pennell Kerr Forster
PC, the Company's independent certified public accountants, as to its ability to
provide all consents required in order to file a registration statement in
connection with this transaction.

                                       16
<PAGE>

                  (k) The Company shall have filed a form UCC -1 with regard to
the Pledged Property and Pledged Collateral as detailed in the Security
Agreement and provided proof of such filing to the Buyer(s). The Company and the
Buyer(s) shall have entered into a Stock Pledge Agreement pursuant to which the
Company shall pledge to the Buyer(s) all of its right, title and interest in the
shares of ActivePoint, Ltd.'s Common Stock held by the Company.

                  (l) The Company shall obtained the approval of its board of
directors and a majority of its outstanding shares of capital stock (voting as
separate classes, if required by applicable law) to increase its authorized
common stock to a number mutually acceptable to the Company and the Investor.

         8. INDEMNIFICATION.

                  (a) In consideration of the Buyer's execution and delivery of
this Agreement and acquiring the Convertible Debentures and the Conversion
Shares hereunder, and in addition to all of the Company's other obligations
under this Agreement, the Company shall defend, protect, indemnify and hold
harmless the Buyer(s) and each other holder of the Convertible Debentures and
the Conversion Shares, and all of their officers, directors, employees and
agents (including, without limitation, those retained in connection with the
transactions contemplated by this Agreement) (collectively, the "BUYER
INDEMNITEES") from and against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection therewith (irrespective of whether any such Buyer Indemnitee is a
party to the action for which indemnification hereunder is sought), and
including reasonable attorneys' fees and disbursements (the "INDEMNIFIED
LIABILITIES"), incurred by the Buyer Indemnitees or any of them as a result of,
or arising out of, or relating to (a) any misrepresentation or breach of any
representation or warranty made by the Company in this Agreement, the
Convertible Debentures or the Investor Registration Rights Agreement or any
other certificate, instrument or document contemplated hereby or thereby, (b)
any breach of any covenant, agreement or obligation of the Company contained in
this Agreement, or the Investor Registration Rights Agreement or any other
certificate, instrument or document contemplated hereby or thereby, or (c) any
cause of action, suit or claim brought or made against such Indemnitee and
arising out of or resulting from the execution, delivery, performance or
enforcement of this Agreement or any other instrument, document or agreement
executed pursuant hereto by any of the Indemnities, any transaction financed or
to be financed in whole or in part, directly or indirectly, with the proceeds of
the issuance of the Convertible Debentures or the status of the Buyer or holder
of the Convertible Debentures the Conversion Shares, as a Buyer of Convertible
Debentures in the Company. To the extent that the foregoing undertaking by the
Company may be unenforceable for any reason, the Company shall make the maximum
contribution to the payment and satisfaction of each of the Indemnified
Liabilities, which is permissible under applicable law.

                  (b) In consideration of the Company's execution and delivery
of this Agreement, and in addition to all of the Buyer's other obligations under
this Agreement, the Buyer shall defend, protect, indemnify and hold harmless the
Company and all of its officers, directors, employees and agents (including,
without limitation, those retained in connection with the transactions
contemplated by this Agreement) (collectively, the "COMPANY INDEMNITEES") from
and against any and all Indemnified Liabilities incurred by the Indemnitees or
any of them

                                       17
<PAGE>

as a result of, or arising out of, or relating to (a) any misrepresentation or
breach of any representation or warranty made by the Buyer(s) in this Agreement,
, instrument or document contemplated hereby or thereby executed by the Buyer,
(b) any breach of any covenant, agreement or obligation of the Buyer(s)
contained in this Agreement, the Investor Registration Rights Agreement or any
other certificate, instrument or document contemplated hereby or thereby
executed by the Buyer, or (c) any cause of action, suit or claim brought or made
against such Company Indemnitee based on material misrepresentations or due to a
material breach and arising out of or resulting from the execution, delivery,
performance or enforcement of this Agreement, the Investor Registration Rights
Agreement or any other instrument, document or agreement executed pursuant
hereto by any of the Company Indemnities. To the extent that the foregoing
undertaking by each Buyer may be unenforceable for any reason, each Buyer shall
make the maximum contribution to the payment and satisfaction of each of the
Indemnified Liabilities, which is permissible under applicable law.

         9. GOVERNING LAW: MISCELLANEOUS.

                  (a) GOVERNING LAW. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of New Jersey without
regard to the principles of conflict of laws. The parties further agree that any
action between them shall be heard exclusively in Hudson County, New Jersey, and
expressly consent to the jurisdiction and venue of the Superior Court of New
Jersey, sitting in Hudson County and the United States District Court for the
District of New Jersey sitting in Newark, New Jersey for the adjudication of any
civil action asserted pursuant to this Paragraph.

                  (b) COUNTERPARTS. This Agreement may be executed in two or
more identical counterparts, all of which shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each
party and delivered to the other party. In the event any signature page is
delivered by facsimile transmission, the party using such means of delivery
shall cause four (4) additional original executed signature pages to be
physically delivered to the other party within five (5) days of the execution
and delivery hereof.

                  (c) HEADINGS. The headings of this Agreement are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Agreement.

                  (d) SEVERABILITY. If any provision of this Agreement shall be
invalid or unenforceable in any jurisdiction, such invalidity or
unenforceability shall not affect the validity or enforceability of the
remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.

                  (e) ENTIRE AGREEMENT, AMENDMENTS. This Agreement supersedes
all other prior oral or written agreements between the Buyer(s), the Company,
their affiliates and persons acting on their behalf with respect to the matters
discussed herein, and this Agreement and the instruments referenced herein
contain the entire understanding of the parties with respect to the matters
covered herein and therein and, except as specifically set forth herein or
therein, neither the Company nor any Buyer makes any representation, warranty,
covenant or undertaking with respect to such matters. No provision of this
Agreement may be waived or amended other than by an instrument in writing signed
by the party to be charged with enforcement.

                                       18
<PAGE>

                  (f) NOTICES. Any notices, consents, waivers, or other
communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered (i) upon
receipt, when delivered personally; (ii) upon confirmation of receipt, when sent
by facsimile; (iii) three (3) days after being sent by U.S. certified mail,
return receipt requested, or (iv) one (1) day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the
party to receive the same. The addresses and facsimile numbers for such
communications shall be:

If to the Company, to:               WWAP, Inc.
                                     C/o ActivePoint Ltd.
                                     20 Giborel Israel St.Poleg Industria Zone
                                     Netanya Israel - 42504
                                     Attention:       Moshe Ofer
                                     Telephone:       972-9-8857484
                                     Facsimile:       972-9-8853233

With a copy to:                      McLaughlin & Stern, LLP
                                     260 Madison Avenue
                                     New York, NY 10016
                                     Attention:       Steven W. Schuster, Esq.
                                     Telephone:       (212) 448-1100
                                     Facsimile:       (212) 448-0066

If to the Transfer Agent, to:

                                     Liberty Transfer Corporation
                                     191 New York Avenue
                                     Huntington New York 11743
                                     Attention:       Lisa Conger
                                     Telephone:       631 385 1616
                                     Facsimile:       631 385 1619

         If to the Buyer(s), to its address and facsimile number on Schedule I,
with copies to the Buyer's counsel as set forth on Schedule I. Each party shall
provide five (5) days' prior written notice to the other party of any change in
address or facsimile number.

                  (g) SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon and inure to the benefit of the parties and their respective successors and
assigns. Neither the Company nor any Buyer shall assign this Agreement or any
rights or obligations hereunder without the prior written consent of the other
party hereto.

                  (h) NO THIRD PARTY BENEFICIARIES. This Agreement is intended
for the benefit of the parties hereto and their respective permitted successors
and assigns, and is not for the benefit of, nor may any provision hereof be
enforced by, any other person.

                  (i) SURVIVAL. Unless this Agreement is terminated under
Section 9(l), the representations and warranties of the Company and the Buyer(s)
contained in Sections 2 and 3,

                                       19
<PAGE>

the agreements and covenants set forth in Sections 4, 5 and 9, and the
indemnification provisions set forth in Section 8, shall survive the Closing for
a period of two (2) years following the date on which the Convertible Debentures
are converted in full. The Buyer(s) shall be responsible only for its own
representations, warranties, agreements and covenants hereunder.

                  (j) PUBLICITY. The Company and the Buyer(s) shall have the
right to approve, before issuance any press release or any other public
statement with respect to the transactions contemplated hereby made by any
party; provided, however, that the Company shall be entitled, without the prior
approval of the Buyer(s), to issue any press release or other public disclosure
with respect to such transactions required under applicable securities or other
laws or regulations (the Company shall use its best efforts to consult the
Buyer(s) in connection with any such press release or other public disclosure
prior to its release and Buyer(s) shall be provided with a copy thereof upon
release thereof).

                  (k) FURTHER ASSURANCES. Each party shall do and perform, or
cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and
documents, as the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

                  (l) TERMINATION. In the event that the Closing shall not have
occurred with respect to the Buyers on or before five (5) business days from the
date hereof due to the Company's or the Buyer's failure to satisfy the
conditions set forth in Sections 6 and 7 above (and the non-breaching party's
failure to waive such unsatisfied condition(s)), the non-breaching party shall
have the option to terminate this Agreement with respect to such breaching party
at the close of business on such date without liability of any party to any
other party.

                  (m) NO STRICT CONSTRUCTION. The language used in this
Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against
any party.

                    [REMAINDER PAGE INTENTIONALLY LEFT BLANK]

                                       20
<PAGE>

         IN WITNESS WHEREOF, the Buyers and the Company have caused this
Securities Purchase Agreement to be duly executed as of the date first written
above.

                                                  COMPANY:
                                                  WWAP, INC.

                                                  By: /s/ Moshe Ofer
                                                      --------------------------
                                                  Name   Moshe Ofer
                                                  Title: CEO

                                                  THE BUYER'S(S') SIGNATURES ARE
                                                  CONTAINED ON SCHEDULE I HERETO

                                       21
<PAGE>

EXHIBIT 10.3 - SECURITIES PURCHASE AGREEMENT

                                    EXHIBIT A

                               DISCLOSURE SCHEDULE

                                   EXHIBIT A-1
<PAGE>

EXHIBIT 10.3 - SECURITIES PURCHASE AGREEMENT

                                   SCHEDULE I

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>
                                                                    ADDRESS/FACSIMILE                    AMOUNT OF
NAME                             SIGNATURE                          NUMBER OF BUYER                     SUBSCRIPTION
----------------------------     -----------------------------      ------------------------------      ------------
<S>                              <C>                                <C>                                   <C>
Cornell Capital Partners, LP     By:   Yorkville Advisors, LLC      101 Hudson Street - Suite 3700        $500,000
                                 Its:  General Partner              Jersey City, NJ 07303
                                                                    Facsimile: (201) 985-8266

                                 By: /s/ Mark A. Angelo             With a copy to:
                                     ------------------             Cornell Capital Partners, LP
                                 Name: Mark A. Angelo               101 Hudson Street, Suite 3700
                                 Its:  Portfolio Manager            Jersey City, NJ 07303
                                                                    Attention: Troy J. Rillo,
                                                                    Esq.
                                                                    Facsimile: (201) 985-8266
</TABLE>

                                  SCHEDULE I-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00076-of-00352.parquet"}]]