Document:

ACKNOWLEDGEMENT AND AGREEMENT

With respect to the Investment Agreement entered into as of April 24,
2000, by and among Guinness Telli*Phone Corporation, a corporation
duly incorporated and existing under the laws of the State of Nevada
(the "Company") and Swartz Private Equity, LLC (hereinafter referred
to as "Swartz"), the Company hereby agrees and acknowledges the
following:

The Company acknowledges that the Investor may sell the Put Shares any
time, and from time to time, after the Put Date for such shares, and
that such sales may occur during a Pricing Period or Pricing Periods
and may have the effect of reducing the Purchase Price.

Furthermore, the Company agrees to present the proposed final
registration statement to be filed pursuant to the terms of the
Registration Rights Agreement entered into in conjunction with the
Investment Agreement to Swartz for its review at least five (5)
business days prior to the proposed filing date, and to obtain Swartz's
final approval of the registration statement before filing it with the
SEC.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
this 24th day of April, 2000.

GUINNESS TELLI*PHONE CORPORATION

    ____________________
By:
Lawrence A. Guinness,  President & CEO

Address:	Guinness Telli*Phone Corporation
655 Redwood Hwy., #111
Mill Valley, CA  94941
Telephone (415) 389-9442
Facsimile (415) 388-0390

SWARTZ PRIVATE EQUITY, LLC.

By: ________________________________
           Eric S. Swartz, Manager

Address:   1080 Holcomb Bridge Road
Bldg. 200, Suite 285
Roswell, GA  30076
Telephone: (770) 640-8130
Facsimile:  (770) 640-7150April 24, 2000

Attn:    Shelley Brazier
Pacific Stock Transfer
P.O. Box 93385
Las Vegas, NV  89103
Telephone: (702) 361-3033
Facsimile: (702) 732-7890

Dear Shelley Brazier:

Reference is made to that certain Investment Agreement (the "Investment
Agreement"), dated on or about April 24, 2000, by and among Guinness
Telli*Phone Corporation, a Nevada corporation (the "Company"), and the
other signatories thereto (the "Holders") pursuant to which the
Company, at times and amounts chosen by the Company, as further
described in the Investment Agreement, may issue to the Holder up to
Thirty Million Dollars ($30,000,000) in aggregate principal amount of
Common Stock of the Company (the "Put Shares"), and warrants (the
"Warrants") to purchase Common Stock (the "Warrant Shares") of the
Company's.

A. Issuance of Put Shares.  This letter shall serve as our irrevocable
authorization and direction to you (provided that you are the transfer
agent of the Company at such time) to issue unlegended Put Shares in
the name of the Holder (or in the name of its nominee, at the Holder's
request) from time to time upon surrender to you of (i) a letter from
the Company, instructing you to issue a specified number of Put Shares
to the Holder, (ii) a properly completed and duly executed Put Notice,
in the form attached hereto as Exhibit 1, which has been properly
agreed and acknowledged by the Company as indicated by the signature of
a duly authorized officer of the Company thereon, (iii) Registration
Confirmation (as defined below) and (iv) an opinion of counsel ("Put
Opinion of Counsel") in substantially the form of the applicable
opinion in Composite Exhibit 2.

B. Issuance of Warrant Shares.  This letter shall serve as our
irrevocable authorization and direction to you (provided that you are
the transfer agent of the Company at such time) to issue unlegended
Warrant Shares in the name of the Holder (or in the name of its
nominee, at the Holder's request) from time to time upon surrender to
you of (i) a letter from the Company, instructing you to issue a
specified number of Warrant Shares to the Holder, (ii) a properly
completed and duly executed Warrant Exercise Form, in the form attached
hereto as Exhibit 3, which has been properly agreed and acknowledged by
the Company as indicated by the signature of a duly authorized officer
of the Company thereon, (iii) Registration Confirmation (as defined
below) and (iv) an opinion of counsel ("Warrant Opinion of Counsel") in
substantially the form of Exhibit 4.

C.  Legend Free Certificates.  So long as you have previously received:
(i) written confirmation from counsel to the Company (which counsel may
be in-house legal counsel) that a registration statement covering
resales of the Put Shares and Warrant Shares has been declared
effective by the Securities and Exchange Commission under the
Securities Act of 1933, as amended, and (ii) a copy of such
registration statement, ((i) and (ii) above are collectively referred
to as "Registration Confirmation"), certificates representing the Put
Shares and Warrant Shares shall not bear any legend restricting
transfer of the Put Shares or Warrant Shares and should not be subject
to any stop-transfer restriction.

If you have not previously received Registration Confirmation, then the
Put Shares shall not be issued, and the certificates representing the
Warrant Shares shall be issued, but shall bear the following legend:

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, THE SECURITIES
REPRESENTED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER APPLICABLE SECURITIES LAWS UNLESS OFFERED, SOLD OR TRANSFERRED
UNDER AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THOSE LAWS."

<PAGE>109

provided, however, that the Company may from time to time notify you to
place stop-transfer restriction on the certificates for outstanding Put
Shares and Warrant Shares in the event a registration statement
covering resales of the Put Shares and the Warrant Shares is subject to
amendment for events then current.

Please be advised that the Holders are relying upon this letter as an
inducement to enter into the Investment Agreement.

[INTENTIONALLY LEFT BLANK]

Please execute this letter in the space indicated to acknowledge your
agreement to act in accordance with these instructions.  Should you
have any questions concerning this matter, please contact me at
(415)389-9442.

Very truly yours,
GUINNESS TELLI*PHONE CORPORATION

By:
Lawrence A. Guinness, President & CEO
Agreed and Acknowledged:
TRANSFER AGENT

GUINNESS TELLI*PHONE CORPORATION

By:

Name:

Title:

Date: April 24, 2000
HOLDER

SWARTZ PRIVATE EQUITY, LLC

By:
Eric S. Swartz, Manager

Date: April 24, 2000

Enclosures

ATTACHED EXHIBITS 1 - 4AGREEMENT

THIS AGREEMENT (the "Agreement") is entered into as of April 24, 2000,
by and among GUINNESS TELLI*PHONE CORPORATION, a corporation duly
organized and existing under the laws of the State of Nevada (the
"Company") and Swartz Private Equity, LLC (hereinafter referred to as
"Swartz").

RECITALS:

WHEREAS, pursuant to the Company's offering ("Equity Line") of up to
Thirty Million Dollars ($30,000,000), excluding any funds paid upon
exercise of the Warrants, of Common Stock of the Company pursuant to
that certain Investment Agreement (the "Investment Agreement") between
the Company and Swartz dated on or about April 24, 2000, the Company
has agreed to sell and Swartz has agreed to purchase, from time to time
as provided in the Investment Agreement, shares of the Company's Common
Stock for a maximum aggregate offering amount of Thirty Million Dollars
($30,000,000); and

WHEREAS, pursuant to the terms of the Investment Agreement, the Company
has agreed, among other things, to issue to the Subscriber Commitment
Warrants, as defined in the Investment Agreement, to purchase a number
of shares of Common Stock, exercisable for five (5) years from their
respective dates of issuance.

TERMS:

NOW, THEREFORE, in consideration of the mutual promises,
representations, warranties, covenants and conditions set forth in
Agreement and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

1.	Issuance of Commitment Warrants.  As compensation for entering
into the Equity Line, Swartz received a warrant convertible into
810,000 shares of the Company's Common Stock, in the form attached
hereto as Exhibit A (the "Commitment Warrants").

2.      Issuance of Additional Warrants.  If the Company shall at any
time effect a recapitalization, reclassification or other similar
transaction of such character that the shares of Common Stock shall be
changed into or become exchangeable for a smaller number of shares (a
"Reverse Stock Split"), then on the date of such Reverse Stock Split,
and on each one year anniversary (each, an "Anniversary Date") of the
Reverse Stock Split thereafter throughout the term of the Commitment
Warrants, the Company shall issue to Swartz additional warrants (the
"Additional Warrants"), in the form of Exhibit A, to purchase a number
of shares of Common Stock, if necessary, such that the sum of the
number of Warrants and the number of Additional Warrants issued to
Swartz shall equal at least 4.0% of the number of shares of Common
Stock of the Company that are outstanding immediately following the
Reverse Stock Split or Anniversary Date, as applicable.  The Additional
Warrants shall be exerciseable at the same price as the Commitment
Warrants, shall have the same reset provisions as the Commitment
Warrants, shall have piggyback registration rights and shall have a 5
year term.

3.	Opinion of Counsel.  Concurrently with the issuance and
delivery of the Commitment Opinion (as defined in the Investment
Agreement) to the Investor, or on the date that is six (6) months after
the date of this Agreement, whichever is sooner, the Company shall
deliver to the Investor an Opinion of Counsel (signed by the Company's
independent counsel) covering the issuance of the Commitment Warrants
and the Additional Warrants, and the issuance and resale of the Common
Stock issuable upon exercise of the Warrants and the Additional
Warrants.

4.	Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Georgia
applicable to agreements made in and wholly to be performed in that
jurisdiction, except for matters arising under the Act or the
Securities Exchange Act of 1934, which matters shall be construed and
interpreted in accordance with such laws.

<PAGE>110

	IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of this 24th day of April, 2000.

GUINNESS TELLI*PHONE CORPORATION

By: __________________________________
SUBSCRIBER:

SWARTZ PRIVATE EQUITY, LLC.

By: ________________________________
         Eric S. Swartz, Manager

1080 Holcomb Bridge Road
Bldg. 200, Suite 285
Roswell, GA  30076
Telephone: (770) 640-8130
Facsimile:  (770) 640-7150
Lawrence A. Guinness, President & CEO

Guinness Telli*Phone Corporation
655 Redwood Hwy., #111
Mill Valley, CA  94941
Telephone: (415) 389-9442
Facsimile:  (415) 388-0390

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