Document:

Exhibit 10.2

OFFER TO ACQUIRE TORCHMAIL.COM INC SHARES

This Agreement sets out the terms and conditions  upon which  CathayOnline  Inc.
offers to acquire all of the issued and outstanding  shares of the TorchMail.com
Inc.,  which  currently  holds an appointment as USA.NET,  Inc.'s  Non-Exclusive
Reseller with First to Market those Services,  which terms are more particularly
defined in agreement dated July 2, 1999 between USA.NET,  Inc and TorchMail.com,
Inc. and which  agreement is appended  hereto as Schedule A forming part of this
Agreement. This Agreement also set out the terms and conditions of the agreement
by each  of the  undersigned  shareholders  to  transfer  all of the  shares  of
TorchMail.com Inc.

1.       DEFINITIONS

1.1      Definitions:  As used in this Agreement, the following terms shall have
         the meanings ascribed hereto:

         "Agreement" means this Agreement,  including all written amendments and
         modifications thereof and all schedules and exhibits thereto;

         "Cathay" means CathayOnline Inc., a company incorporated under the laws
         of the State of Nevada;

         "Cathay Shares" means the common shares of $0.001 par value;

         "Closing" means the completion by Cathay and the  Shareholders of Torch
         of the

         transaction set forth herein; "Closing Date" has the meaning set out in
         section 5.1;

         "Shareholders" means collectively all of the shareholders of Torch;

         "Torch" means  TorchMail.com  Inc., as company  incorporated  under the
         laws of the Turks & Caicos, BWI;

         "Torch Shares" means the common shares of $1.00 par value;

         "USA.NET" means a company  incorporated  under the laws of the State of
         Delaware.

         "USA.NET Agreement" means that Reseller Agreement contained in Schedule
         A herto.

<PAGE>

2.PURCHASE AND SALE

2.1      Purchase  and Sale  Relying  upon the  representations  and  warranties
         herein contained and subject to the terms and conditions hereof, Cathay
         hereby offers to acquire from each of the  Shareholders and each of the
         Shareholders  hereby  agrees  to sell to  Cathay  that  number of Torch
         Shares held by each of the  Shareholders  representing in the aggregate
         all of the issued and outstanding Shares of Torch.

2.2      Consideration  : In  consideration  for the sale of the Torch Shares to
         Cathay,  Cathay agrees to issue Cathay Shares to the  Shareholders  pro
         rata in  accordance  with the  percentage  of Torch Shares held by each
         Shareholder  as set forth as  Schedule B,  attached  hereto and forming
         part of this Agreement.

2.3      Cathay Share Resale Restrictions: Each of the Shareholders acknowledges
         that:

         a)       Cathay is a non  reporting  issuer list on NASDAQ OTC Bulletin
                  Board; and

         B)       THE CATHAY SHARES HAVE NOT BEEN AND WILL NO BE REGISTERED WITH
                  THE UNITED STATES  SECURITIES  AND EXCHANGE  COMMISSION OR THE
                  SECURITIES  COMMISSION  OF ANY STATE  PURSUANT TO AN EXEMPTION
                  FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
                  ("1933  ACT') AND  REGULATION  S OF THE RULES AND  REGULATIONS
                  PROMULGATED THEREUNDER,  AND MAY NOT BE SOLD OR OFFERED WITHIN
                  THE UNITED STATES (AS DEFINED IN REGULATION S) EXCEPT PURSUANT
                  TO  THE   REGISTRATION   UNDER  OF  AN   EXEMPTION   FROM  THE
                  REGISTRATION REQUIREMENTS OF THE "1933 ACT".

         c)       The Cathay  Shares  will be subject to a hold  period  imposed
                  under  the  appropriate   securities  laws  and   certificates
                  representing  the  Cathay  Shares  will be  restricted  with a
                  legend in respect to such hold period; and

         d)       The Cathay  Shares may,  pursuant to  requirements  imposed by
                  applicable securities regulatory authorities or by virtue of a
                  Shareholder  becoming a "control person", as defined under the
                  appropriate US Securities  Act, be subject to  restrictions in
                  terms of issuance,  escrow arrangements,  resale or such other
                  limitations as may be mandated by such  securities  regulatory
                  authority; and

         e)       The Cathay Shares will be issued in accordance  with the rules
                  and  regulations  of the  Securities  and Exchange  Commission
                  (SEC), under the Securities Act of 1933 as amended.

<PAGE>

3.       REPRESENTATIONS AND WARRANTIES

3.1      Representations  and  Warranties  of  Sbareholder~:   Each  Shareholder
         represents and warrants, in respect of that number of Torch Shares held
         by him as set  forth in  Schedule  B, to and in  favour  of  Cathay  as
         follows   and   acknowledges   that   Cathay  is   relying   upon  such
         representations   and  warranties  in   consummating   the  transaction
         contemplated by this Agreement.

         a)       Such  Shareholder  is, or shall at the  Closing  Date be,  the
                  registered and beneficial owner of that number of Torch Shares
                  set  forth  in  Schedule  B with  good  and  marketable  title
                  thereto, free and clear of all charges, liens or encumbrances,
                  any option or similar  right or right of first  refusal or any
                  other right to acquire any such Torch Shares.

         b)       Such  Shareholder,  if an  individual,  has the full power and
                  authority  to  transfer  its Torch  Shares  to Cathay  without
                  restriction;

         c)       Such  Shareholder has the full power and authority to transfer
                  its Torch Shares to Cathay and all necessary  corporate action
                  has  been   taken  and   authority   granted   to  allow  such
                  Shareholders  to enter into this Agreement and to complete the
                  transaction contemplated hereby;

         d)       This  Agreement  has  been  duly  authorized,   executed,  and
                  delivered by such Shareholder, constitutes a legal and binding
                  obligation of such Shareholder in accordance with these terms;

3.2      Representations  and  Warranties  of  Cathay:   Cathay  represents  and
         warrants  to and in favour of each of the  Shareholders  as follows and
         acknowledges  that  each  of the  Shareholders  in  relying  upon  such
         representations   and  warranties  in   consummating   the  transaction
         contemplated by this Agreement:

         a)       Cathay is a  corporation  incorporated  in the State of Nevada
                  and trades on the NASDAQ OTC  Bulletin  Board under the symbol
                  "CAOL";

         b)       Cathay has the  corporate  power and  authority  to enter into
                  this Agreement and to perform its obligations hereunder:

         c)       The Cathay  Shares  will in  accordance  with  Schedule  B, be
                  validly issued as fully paid and non-assessable  Shares in the
                  capital of Cathay; and

         d)       The  execution   and  delivery  of  this   Agreement  and  the
                  completion of the  transaction  herein will,  upon approval of
                  the  Board  of  Directors   constitute  a  valid  and  binding
                  obligation of Cathay enforceable against it in accordance with
                  its terms.

4.       CONDITION OF CLOSING

The  obligation of Cathay to complete the  transaction  as  contemplated  herein
shall be subject to the following conditions:

         a)       This   Agreement  has  been  duly  executed  by  each  of  the
                  Shareholders.

<PAGE>

         b)       All  representatives  and warranties of the  Shareholders  set
                  forth in  section  3.1  shall be true  and  correct  as at the
                  Closing Date;

         c)       Torch shall have no  outstanding  debts or  liabilities  a the
                  Closing Date;

         d)       Completion   of  due   diligence   by  Cathay   with   results
                  satisfactory  to Cathay,  in its  absolute  discretion.  Torch
                  shall  provide and deliver in timely  manner to Cathay any and
                  all  reasonable   requests  for   information,   documentation
                  (including  financial  information)  to enable Cathay complete
                  its stated due diligence.

5.       CLOSING

5.1      Closing:  The  closing  shall  take  place on the  third  business  day
         following  the notice  from  Cathay to Torch  stating  that  Cathay has
         completed its due diligence to its sole and absolute  satisfaction  and
         is ready to proceed to Close the transaction as contemplated herein;

5.2      Delivery by the Shareholders:  At the Closing, each of the Shareholders
         shall deliver to Cathay the following:

         a)       A certified  true copy of resolution of the Board of Directors
                  of Torch  evidencing  its approval to this  Agreement  and the
                  transactions contemplated there under;

         b)       Share certificate or certificates for each of the Shareholders
                  and  representation  in the  aggregate all of the Torch Shares
                  duly canceled:

         c)       A new share certificate  issued by the Torch  representing the
                  Torch Shares  registered in the name of Cathay,  together with
                  confirmation  of  registration  of Cathay as the holder of all
                  the Torch Shares; and

         d)       Such other documents, certificates and legal opinions that are
                  in the  opinion of the legal  counsel  of  Cathay,  reasonably
                  required to complete the transaction contemplated here under.

5.3      Delivery by Cathay: At the closing, Cathay shall deliver to each of the
         Shareholders the following:

         a)       a certified  true copy of resolution of the Board of Directors
                  of Cathay  evidencing their approval of this Agreement and the
                  transaction contemplated hereunder;

         b)       A  share  certificate  or  certificates  in the  name  of each
                  Shareholder  or in such name or names as the  Shareholder  may
                  direct, representing that number of Cathay Shares as is listed
                  for each Shareholder in Schedule "B" attached hereto.

         c)       Such other  documents,  certificates  and legal  opinions that
                  are,  in  the  opinion  of  legal  counsel  of  Torch  or  the
                  Shareholders,  reasonably required to complete the transaction
                  hereunder.

<PAGE>

6.0      GENERAL

         6.1      Binding  Agreement:  Upon  acceptance  of the  terms  of  this
                  Agreement  by the  parties  hereto,  this  Agreement  shall be
                  deemed to constitute  and shall be a legally valid and binding
                  Agreement.

         6.2      Further  Assurances:  The parties  hereto agree to execute and
                  deliver or cause to be delivered  all such  further  documents
                  and  instruments  and do all such  acts and  things  as either
                  party may reasonably  request to give full effect to the terms
                  and conditions set forth or referred to herein.

         6.3      Entire   Agreement  This  Agreement   constitutes  the  entire
                  Agreement  between  the  parties  hereto and in respect of the
                  matters  referred to herein and there are no  representations,
                  warranties,   convenent,   agreements  expressed  or  implied,
                  collateral  hereto  other  than  as  expressly  set  forth  or
                  referred to herein.

         6.4      Time of the  Essence:  Time  shall be of the  essence  to this
                  Agreement.

         6.5      Legal  Costs:  Legal  costs  incurred in  connection  with the
                  preparation  of  the  Agreement  and  the  completion  of  the
                  transaction  contemplated  herein  shall be for the account of
                  each party having incurred such cost.

         6.6      Applicable  laws  and  Attornment:  This  Agreement  shall  be
                  governed and  interpreted  in accordance  with the laws of the
                  State of Nevada and the parties  hereto  irrevocably  attom to
                  the  non-exclusive  jurisdiction of the courts of the State of
                  Nevada.

         6.7      Enurement:  This Agreement  shall ensure to the benefit of and
                  be  binding  upon the  parties  hereto  and  their  respective
                  successors and assigns.

         6.8      Counterparts:  This Agreement may be executed in any number of
                  counterparts with the same effect as if all the parties hereto
                  have signed the same  agreement and all  counterparts  will be
                  construed together and constitute one and the same instrument.

         6.9      Notice: Any notice,  request, demand or other communication to
                  be given under this Agreement shall be in writing and shall be
                  delivered by hand or by telecopy to the party at the following
                  respective addresses:

                  6.9.1    To Cathay:

                                             Attention: President
                                             543 -- 302 Granville Street
                                             Vancouver, B.C.
                                             Canada V6C 1X8
                                             Facsimile: (604) 688-1436

<PAGE>

                   6.9.2   To Torch:
                                             Attention:    President
                                             McLean Building
                                             P.O. Box 62
                                             2001 Leeward Highway
                                             Providenciales
                                             Turks & Caicos, BWI
                                             Facsimile:    (649) 946-4484

The foregoing is hereby accepted and agreed to as of the 2'~" day of July, 1999.

CATHAYONLINE INC.

Per:
     -----------------------------------------
       Brian W. Ransom - Authorized Signatory

TORCHMAIL.COM, [NC.

Per:
     -----------------------------------------
      Andrew Meade -- Director

SHAREHOLDER

Per:
     -----------------------------------------
      Michele Parker

<PAGE>

                                   Schedule B

Names of the Shareholders and the number of Torch Shares held by each:

NAME                                                  No. of Shares Held
-------------------------------------------------------------------------------

Michelle Parker

Cathay shall  release to the  Shareholders  on a pro rata basis Cathay Shares in
accordance with the following schedule:

A.

         o        On Closing of the Agreement: 2,500,000 Cathay Shares;

         o        Upon the resale of 360,000 Seats (as defined in Schedule A) or
                  more as called for under 3.3 (a) of Schedule  A, Cathay  shall
                  issue further 2,500,000 Cathay Shares;

         o        Upon the  resale of  500,000  Seats or more by  Torch,  Cathay
                  shall further issue 1,250,000 Cathay Shares;

         o        Upon the  resale of  750,000  Seats or more by  Torch,  Cathay
                  shall issue further 1,250,000 Cathay Shares.

B.       In addition  to the  issuance of the above  Cathay  Shares,  at Closing
         Cathay shall pay US$ 10,000 to the Shareholders.

C.       The  Shareholders  shall receive  monetary  compensation  in respect of
         resale of the Seats. This monetary  compensation shall be in accordance
         with the following schedule:

         o        Upon the resale of 35,000 Seats and up to the resale of 99,999
                  Seats by Torch,  Torch shall pay to the Shareholders $0.01 per
                  Seat per month for each and every Seat.

         o        Upon the  resale  of  100,000  Seats  and up to the  resale of
                  199,999  Seats by Torch,  Torch shall pay to the  Shareholders
                  $0.03 per Seat per month for each and every Seat.

         o        Upon the  resale  of  200,000  Seats  and up to the  resale of
                  299,999  Seats by Torch,  Torch shall pay to the  Shareholders
                  $0.05 per Seat per month for each and every Seat.

<PAGE>

         o        Upon the  resale  of  300,000  Seats  and up to the  resale of
                  399,999  Seats by Torch,  Torch shall pay to the  Shareholders
                  $0.07 per Seat per month for each and every Seat.

         o        Upon the resale of 400,000 or more Seats by Torch, Torch shall
                  pay to the Shareholders  $0.10 per Seat per month for each and
                  every Seat.

It is  hereby  expressly  agreed,  acknowledged  and  understood  that  Cathay's
obligation  to issue  Cathay  Shares and make the  payments  under (C) above are
solely predicated upon Torch achieving the various sales targets as set forth in
the Reseller Agreement continued in Schedule A of this Agreement.EXHIBIT 10.3

         Reseller Agreement between TorchMail.com Inc. and USA.NET Inc.

THIS  AGREEMENT HAS BEEN  SUBMITTED TO THE  SECURITIES  AND EXCHANGE  COMMISSION
UNDER  SEPARATE  COVER WITH A REQUEST  THAT THE EXHIBIT BE GRANTED  CONFIDENTIAL
TREATMENT.

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