Document:

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                                                                    EXHIBIT 4.3

                      SECOND AMENDMENT TO RIGHTS AGREEMENT

SECOND AMENDMENT dated as of October 10, 2003 (this "Amendment") to the Rights
Agreement (the "Agreement") dated as of August 20, 1993 between Mercer
International Inc., a Massachusetts trust organized under the laws of the State
of Washington (the "Company"), and Computershare Trust Company of Canada, the
successor to Montreal Trust Company of Canada, as rights agent (the "Rights
Agent"), as amended pursuant to the First Amendment to the Rights Agreement
dated as of August 5, 2003 (the "First Amendment"). Capitalized terms used
herein and not otherwise defined shall have the respective meanings ascribed to
such terms in the Agreement.

     WHEREAS, the Company has proposed to sell $82,500,000 of its 8.5%
Convertible Senior Subordinated Notes due 2010 and, in connection therewith, has
proposed to amend the Agreement to provide that purchasers of such notes will
not inadvertently become Acquiring Persons under the Agreement as a result of
the acquisition of such notes;

     WHEREAS, the Company deems this Amendment to the Agreement to be necessary
and desirable and in the best interests of the holders of the Rights and has
duly approved this Amendment;

     WHEREAS, no event has occurred that would cause any Person to be deemed an
Acquiring Person; and

     WHEREAS, Section 26 to the Agreement permits the Company at any time prior
to the Distribution Date to amend the Agreement in the manner provided herein.

     NOW, THEREFORE, the Agreement is hereby amended as follows:

     Section 1. Deletion and Replacement of Subsection 1(a). Subsection 1(a) to
the Agreement is hereby deleted and replaced by the following:

     "(a) "Acquiring Person" shall mean any Person who or which, together with
     all Affiliates and Associates of such Person, shall be the Beneficial Owner
     of 15% or more of the aggregate of the shares of Common Stock then
     outstanding and the Issuable Note Shares, but shall not include the
     Company, any Subsidiary of the Company, any employee benefit plan of the
     Company or any Subsidiary of the Company, or any Person organized,
     appointed or established by the Company for or pursuant to the terms of any
     such plan.".

     Section 2. Amendment to Subsection 1(d)(iii). Subsection 1(d)(iii) to the
Agreement is hereby amended by adding thereto between the phrase "as an
underwriter of securities" and the phrase "to be the "Beneficial Owner" of," in
the seventh and eighth lines thereof the following phrase to be inserted between
the two foregoing phrases:

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                                      -2-

     "(either in a public offering or an offering pursuant to Rule 144A and/or
     Regulation S under the Act or other transaction in which securities are
     purchased from the Company for resale)".

     Section 3. Addition of New Subsection 1(o). A new Subsection 1(o) to the
Agreement is hereby added:

     "(o) "Issuable Note Shares" shall mean shares of Common Stock into which
     the then outstanding Notes are convertible as if the then outstanding Notes
     had been fully converted.".

     Section 4. Addition of New Subsection 1(p). A new Subsection 1(p) to the
Agreement is hereby added:

     "(p) "Notes" shall mean the 8.5% Convertible Senior Subordinated Notes due
     2010 of the Company issued under the indenture dated on or about October
     10, 2003 between the Company and Wells Fargo Bank, Minnesota, N.A., as
     trustee.".

     Section 5. Amendment to Section 1. Section 1 to the Agreement is hereby
amended by renumbering current Subsections 1(o) through 1(ee) to the Agreement
as Subsections 1(q) through 1(gg), respectively, to the Agreement.

     Section 6. Amendment to Subsection 3(a). Subsection 3(a) to the Agreement
is hereby amended by deleting therefrom the phrase "Beneficial Owner of 25% or
more of the shares of Common Stock then outstanding" from the ninth and tenth
lines thereof and replacing the same with the following:

     "Beneficial Owner of 15% or more of the aggregate of the shares of Common
     Stock then outstanding and the Issuable Note Shares".

     Section 7. Amendment to Subsection 11(a)(ii)(B). Subsection 11(a)(ii)(B) to
the Agreement is hereby amended by deleting therefrom the phrase "become the
Beneficial Owner of 15% or more of the shares of Common Stock then outstanding,"
from the fifth and sixth lines thereof and replacing the same with the
following:

     "become the Beneficial Owner of 15% or more of the aggregate of the shares
     of Common Stock then outstanding and the Issuable Note Shares,".

     Section 8. Amendment to Exhibit C.

     (a) Exhibit C (the Summary of Rights to Purchase Preferred Stock) to the
     Agreement is hereby amended by deleting therefrom, in its entirety, the
     second full sentence of the second paragraph thereof and replacing the same
     with the following:

     "The Rights will separate from the Common Stock and a Distribution Date
     will occur upon the earlier of (i) 10 days following a public announcement
     that a person or group of affiliated or associated persons (an "Acquiring
     Person") has acquired, or obtained the right to acquire, beneficial
     ownership of 15% or more of the aggregate of the then

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                                      -3-

     outstanding shares of Common Stock and shares of Common Stock into which
     the 8.5% Convertible Senior Subordinated Notes due 2010 of the Company (the
     "Notes") are convertible (the "Issuable Note Shares") as if the then
     outstanding Notes had been fully converted (the "Stock Acquisition Date"),
     or (ii) 10 days following the commencement of a tender offer or exchange
     offer that would result in a person or group beneficially owning 15% or
     more of the aggregate of the then outstanding shares of Common Stock and
     the Issuable Note Shares."

     (b) Exhibit C to the Agreement is hereby further amended by deleting
     therefrom the phrase "beneficial owner of more than 25% of the then
     outstanding shares of Common Stock" from the fourth and fifth lines of the
     fifth paragraph thereof and replacing the same with the following:

     "beneficial owner of more than 15% of the aggregate of the then outstanding
     shares of Common Stock and the Issuable Note Shares".

     Section 9. Full Force and Effect. Except as expressly amended hereby and by
the First Amendment, the Agreement shall continue in full force and effect
unamended and in accordance with the provisions thereof on the date hereof.

     Section 10. Governing Law. This Amendment shall be governed by and
construed in accordance with the law of the State of Washington applicable to
contracts to be made and performed entirely within such State.

     Section 11. Counterparts. This Amendment may be executed in two
counterparts and by facsimile, each of which shall be deemed an original, but
both of which together shall constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

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                                      -4-

     IN WITNESS WHEREOF, the Company and the Rights Agent have caused this
Amendment to be duly executed as of the day and year first above written.

MERCER INTERNATIONAL INC.

By: /s/ Jimmy S.H. Lee
    ------------------------
    Name: Jimmy S.H. Lee
    Title:

COMPUTERSHARE TRUST COMPANY OF CANADA

By: /s/ Ian Malcom        /s/ Margaret Au
    -------------------   -----------------------
    Name:
    Title:Exhibit 10.1

                      Agreement and Plan of Reorganization

                                 by and between
                            Premium Enterprises, Inc.
                             a Colorado corporation
                                       and
                               eTotalsource, Inc.
                            a California corporation

                            dated: December 18, 2002

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                      AGREEMENT AND PLAN OF REORGANIZATION

                           Premium Enterprises, Inc..
                                       and
                               eTotalsource, Inc.

     This  Agreement  and  Plan of  Reorganization  ("Agreement"),  dated  as of
December  18,  2002,  among  Premium  Enterprises,   Inc.  ("PMN"),  a  Colorado
Corporation,  eTotalsource,  Inc.  ("ETS"),  a California  Corporation,  and the
subscribing  shareholders of eTotalsource,  Inc. ("ETS  Shareholders")  who will
join this Agreement by execution.

                              W I T N E S S E T H:

     A. WHEREAS,  ETS and PMN are corporations  duly organized under the laws of
the State of California and Colorado, respectively.

     B. Plan of Reorganization.  The subscribing ETS Shareholders are the owners
of at least  90%of the issued and  outstanding  common  stock of ETS.  It is the
intention that 90% of the issued and outstanding  stock of ETS shall be acquired
by PMN in exchange solely for its voting stock.  For federal income tax purposes
it is intended that this exchange shall qualify as a  reorganization  within the
meaning of SEC 368  (a)(1)(B) of the Internal  Revenue Code of 1986,  as amended
(the "Code").

     C. Exchange of Shares.  PMN and the subscribing ETS Shareholders agree that
90% of the  approximately  3,143,434 common shares issued and outstanding of ETS
shall be exchanged  with PMN for  17,000,000  shares of the common stock of PMN.
The PMN shares,  on the closing date, shall be delivered  ratably divided to the
individual  subscribing  shareholders of ETS in exchange for their ETS shares as
hereinafter set forth.

     D. WHEREAS, the parties hereto wish to enter into this Agreement,  pursuant
to the provisions of the Colorado Business Corporation Act.

     NOW, THEREFORE, it is agreed among the parties as follows:

                                    ARTICLE I

                                The Consideration

     1.1 Subject to the conditions set forth herein on the "Effective  Date" (as
herein defined), the subscribing Shareholders of ETS shall exchange all of their
shares of ETS  (constituting  at least 90% of the issued and outstanding  common
stock of ETS) for

                                       1
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17,000,000  common shares of PMN common stock. The transactions  contemplated by
this  Agreement  shall be completed at a closing  ("Closing")  on a closing date
("Closing  Date") which shall be as soon as  practicable  after  joinder in this
exchange by ETS Shareholders  holding at least 90% of the outstanding ETS common
shares,  except that such  transaction  must be  completed on or before Oct. 30,
2002, or this Agreement shall expire unless extended in writing.

     On the Closing  Date,  all of the documents to be furnished to PMN and ETS,
including  the  documents  to be  furnished  pursuant  to  Article  VII of  this
Agreement,  shall be delivered to M.A.  Littman,  to be held in escrow until the
Effective  Date or the date of termination of this  Agreement,  whichever  first
occurs,  and  thereafter  shall be promptly  distributed to the parties as their
interests may appear.

     1.2 At the Effective  Date,  ETS shall become a wholly owned  subsidiary of
PMN.  ETS's  shareholders  shall  receive pro rata shares of no par value voting
common stock as follows:

          PMN shall issue  17,000,000  of its shares of common  stock for 90% of
          the outstanding  common shares of ETS to the subscribing  shareholders
          of ETS, ratably according to their interests.

     1.3 If  this  Agreement  is  duly  executed  by the  holders  of 90% of the
outstanding  common stock of ETS,  subject to the other  provisions  hereof,  it
shall become effective,  and such date of final execution shall be the effective
date of this Agreement.

                                   ARTICLE II

                         Issuance and Exchange of Shares

     2.1 The shares of no par value common stock of PMN shall be issued by it to
the subscribing ETS shareholders at Closing.

     2.2 PMN represents that no outstanding options or warrants for its unissued
shares exist,  however,  after this  transaction  and after  effecting a reverse
split of one for four issued and  outstanding  shares after  completion  of this
transaction,  the  company  has  committed  to and  intends  to issue a total of
300,000 common shares registered on form S-8, for past services rendered, by the
transfer agent, attorneys,  compensation to the President and 500,000 restricted
common shares,  for cash advances made to pay for services for the company,  and
consulting fees in satisfaction of certain accrued and accruing liabilities.

     2.3 The stock transfer books of ETS shall be closed on the Effective  Date,
and thereafter no transfers of the stock of ETS shall be made. ETS shall appoint
an exchange agent  ("Exchange  Agent"),  to accept surrender of the certificates
representing

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the  common  shares of ETS,  and to  deliver in  exchange  for such  surrendered
certificates,  shares of common stock of PMN. The  authorization of the Exchange
Agent may be  terminated by PMN after six months  following the Effective  Date.
Upon termination of such authorization,  any shares of ETS and any funds held by
the Exchange  Agent for payment to ETS  shareholders  pursuant to this Agreement
shall be transferred to PMN or its designated agent who shall thereafter perform
the obligations of the Exchange Agent. If outstanding certificates for shares of
ETS are not  surrendered  or the payment for them not claimed prior to such date
on which such payments would otherwise  escheat to or become the property of any
governmental unit or agency,  the unclaimed items shall, to the extent permitted
by abandoned  property and other applicable law, become the property of PMN (and
to the extent not in its possession shall be paid over to it), free and clear of
all  claims or  interest  of any  persons  previously  entitled  to such  items.
Notwithstanding the foregoing,  neither the Exchange Agent nor any party to this
Agreement shall be liable to any holder of ETS shares for any amount paid to any
governmental unit or agency having  jurisdiction of such unclaimed item pursuant
to the abandoned property or other applicable law of such jurisdiction.

     2.4 No  fractional  shares of PMN stock  shall be issued as a result of the
Agreement. Shares shall be rounded up to nearest whole share.

     2.5 At the Effective  Date,  each holder of a certificate  or  certificates
representing  common  shares of ETS,  upon  presentation  and  surrender of such
certificate or certificates to the Exchange Agent,  shall be entitled to receive
the  consideration  set forth herein,  except that holders of those shares as to
which dissenters' rights shall have been validly asserted and perfected pursuant
to California  law shall not be converted  into shares of PMN common stock,  but
shall represent only such dissenters' rights. Upon such presentation, surrender,
and exchange as provided in this Section 2.5,  certificates  representing shares
of ETS previously  held shall be canceled.  Until so presented and  surrendered,
each certificate or certificates which represented issued and outstanding shares
of ETS at the  Effective  Date shall be deemed for all  purposes to evidence the
right to receive the  consideration  set forth in Section 1.2 of this Agreement.
If the certificates representing shares of ETS have been lost, stolen, mutilated
or destroyed,  the Exchange  Agent shall require the  submission of an indemnity
agreement and may require the submission of a bond in lieu of such certificate.

                                   ARTICLE III

                           Representations, Warranties
                       and Covenants of ETotalsource, Inc.

     No  representations  or  warranties  are  made  by any  director,  officer,
employee  or  shareholder  of ETS as  individuals,  except as and to the  extent
stated in this Agreement or in a separate written statement (the "ETS Disclosure
Statement"), if any. ETS hereby represents, warrants and covenants to PMN except
as stated in the ETS Disclosure Statement, as follows:

                                       3
<PAGE>

     3.1 ETS is a  corporation  duly  organized,  validly  existing  and in good
standing under the laws of the State of California,  and has the corporate power
and authority to own or lease its  properties and to carry on its business as it
is now being conducted.  The Certificate of Incorporation  and Bylaws of ETS are
complete and  accurate,  and the minute books of ETS contain a record,  which is
complete  and  accurate  in all  material  respects,  of all  meetings,  and all
corporate actions of the shareholders and board of directors of ETS.

     3.2 The  aggregate  number of shares  which ETS is  authorized  to issue is
40,000,000  shares of common  stock of which  2,804,000  shares  are  issued and
outstanding;  10,000,000  shares of preferred stock, of which 339,434 are issued
and outstanding.  There are 2,804,000 shares reserved to cover options, warrants
and convertible Notes.

     3.3 ETS has complete  and  unrestricted  power to enter into and,  upon the
appropriate  approvals  as  required  by law,  to  consummate  the  transactions
contemplated by this Agreement.

     3.4 Neither the making of nor the compliance  with the terms and provisions
of this Agreement and  consummation of the transactions  contemplated  herein by
ETS will  conflict  with or result in a breach or  violation  of the Articles of
Incorporation or Bylaws of ETS.

     3.5 The execution, delivery and performance of this Agreement has been duly
authorized and approved by ETS= Board of Directors.

     3.6 There are no legal  proceedings  or  regulatory  proceedings  involving
material claims pending,  or to the knowledge of the executive  officers of ETS,
threatened against ETS or affecting any of its assets or properties,  and to the
knowledge of ETS' officers, ETS is not in any material breach or violation of or
default under any contract or  instrument to which ETS is a party,  or under its
respective  Articles  of  Incorporation  or  Bylaws,  nor is there  any court or
regulatory order pending, applicable to ETS.

     3.7 The  representations and warranties of ETS shall be true and correct as
of the date hereof and as of the Effective Date.

     3.8 No  representation  or  warranty  by ETS in  this  Agreement,  the  ETS
Disclosure  Statement or any certificate  delivered pursuant hereto contains any
untrue  statement  of a  material  fact or  omits  to state  any  material  fact
necessary to make such representation or warranty not misleading.

                                       4
<PAGE>

     3.9 To the  knowledge  of the  executive  officers of ETS, all trade names,
inventions,  discoveries,  ideas,  research,  engineering,  methods,  practices,
processes,   systems,   formulae,   designs,   drawings,   products,   projects,
improvements,  developments,  know-how,  and trade secrets which are used in the
conduct of ETS' business,  whether registered or unregistered  (collectively the
AProprietary  Rights@)  are  owned by ETS.  To the  knowledge  of the  executive
officers  of ETS,  ETS created or  developed  such  Proprietary  Rights and such
Proprietary Rights are not subject to any restriction, lien, encumbrance, right,
title or interest in others.  All of the Proprietary  Rights stand solely in the
name of ETS and not in the name of any shareholder,  director,  officer,  agent,
partner or employee or anyone else known to the  executive  officers of ETS, and
none  of the  same  have  any  right,  title,  interest,  restriction,  lien  or
encumbrance  therein or thereon or thereto.  To the  knowledge of the  executive
officers of ETS,  ETS"  ownership and use of the  Proprietary  Rights do not and
will not infringe  upon,  conflict  with or violate in any material  respect any
patent,  copyright,  trade secret or other lawful proprietary right of any other
party, and no claim is pending or, to the knowledge of the executive officers of
ETS,  threatened  to the effect  that the  operations  of ETS  infringe  upon or
conflict  with  the  asserted  rights  of  any  other  person  under  any of the
Proprietary  Rights, and to the knowledge of the executive officers of ETS there
is  no  reasonable  basis  for  any  such  claim  (whether  or  not  pending  or
threatened).  No claim is pending, or to the knowledge of the executive officers
of ETS,  threatened  to the effect  that any such  Proprietary  Rights  owned or
licensed  by ETS,  or which ETS  otherwise  has the right to use,  is invalid or
unenforceable by ETS.

     3.10  (i) ETS has not  received  notice  of any  material  violation  of or
investigation  relating to any  environmental or pollution law,  regulation,  or
ordinance with respect to assets now or previously owned or operated by ETS that
has not been fully and finally resolved;  (ii) to the knowledge of the executive
officers  of ETS,  all  permits,  licenses  and other  authorizations  which are
required under United  States,  federal,  state,  provincial and local laws with
respect to pollution or protection of the  environment  ("Environmental  Laws"),
including  Environmental  Laws  relating  to  actual  or  threatened  emissions,
discharges  or  releases  of  pollutants,  contaminants  or  hazardous  or toxic
materials or wastes ("Pollutants") have been obtained; (iii) to the knowledge of
the  executive  officers  of ETS,  no  conditions  exist  on,  in or  about  the
properties  now or  previously  owned  or  operated  by  ETS or any  third-party
properties to which any  Pollutants  generated by ETS were sent or released that
could give rise on the part of ETS to material liability under any Environmental
Laws,  material claims by third parties under Environmental Laws or under common
law or the  occurrence of material  costs to avoid any such  liability or claim;
and (iv) to the  knowledge of the  executive  officers of ETS, all  operators of
ETS's assets are in material  compliance  with all terms and  conditions of such
Environmental  Laws,  permits,  licenses  and  authorizations,  and are  also in
compliance  with all other  limitations,  restrictions,  conditions,  standards,
prohibitions,  requirements,  obligations, schedules and timetables contained in
such laws or contained in any regulation,  code, plan, order, decree,  judgment,
notice or demand letter issued,  entered,  promulgated  or approved  thereunder,
relating to ETS's assets.

                                       5
<PAGE>

     3.11 ETS has  delivered to PMN financial  statements of ETS dated  December
31,  2001.  All  such   statements,   herein  sometimes  called  "ETS  Financial
Statements,"  are (and will be) complete  and correct in all  material  respects
and, together with the notes to these financial  statements,  present fairly the
financial  position and results of operations of ETS for the periods  indicated.
All  financial  statements  of ETS will have been  prepared in  accordance  with
generally accepted accounting principles.

     3.12 Since the dates of the ETS Financial  Statements,  there have not been
any  material  adverse  changes  in the  business  or  condition,  financial  or
otherwise,  of ETS. ETS does not have any material  liabilities or  obligations,
secured or  unsecured  except as shown on the  updated  financials  of ETS dated
September 30, 2002 (whether accrued, absolute, contingent or otherwise).

                                   ARTICLE IV

                  Representations, Warranties and Covenants of
                           Premium Enterprises, Inc.

     No  representations  or  warranties  are  made  by any  director,  officer,
employee  or  shareholder  of PMN as  individuals,  except as and to the  extent
stated in this Agreement or in a separate written statement.

     PMN hereby represents,  warrants and covenants to ETS and its shareholders,
except as stated in the PMN Disclosure Statement, as follows:

     4.1 PMN is a  corporation  duly  organized,  validly  existing  and in good
standing  under the laws of the State of Colorado,  and has the corporate  power
and authority to own or lease its  properties and to carry on its business as it
is now being conducted.  The Articles of Incorporation and Bylaws of PMN, copies
of which have been  delivered to ETS, are complete and accurate,  and the minute
books of PMN contain a record,  which is complete  and  accurate in all material
respects,  of all meetings,  and all corporate  actions of the  shareholders and
Board of Directors of PMN.

     4.2 The  aggregate  number of shares  which PMN is  authorized  to issue is
20,000,000  shares of common  stock  with no par value per share and 10  million
shares of preferred  stock, of which  2,025,140  shares of such common stock are
issued and outstanding, fully paid and non-assessable, at the Closing under this
Agreement. PMN will have, on the Closing Date, no outstanding options,  warrants
or other rights to purchase, or subscribe to, or securities  convertible into or
exchangeable for any shares of capital stock,  except options referred to in 2.2
above. No preferred stock of PMN is outstanding.

     4.3 PMN has complete  and  unrestricted  power to enter into and,  upon the
appropriate  approvals  as  required  by law,  to  consummate  the  transactions
contemplated by this Agreement.

                                       6
<PAGE>

     4.4 Neither the making of nor the compliance  with the terms and provisions
of this Agreement and  consummation of the transactions  contemplated  herein by
PMN will  conflict  with or result in a breach or  violation  of the Articles of
Incorporation or Bylaws of PMN.

     4.5 The execution of this  Agreement has been duly  authorized and approved
by the Board of Directors of PMN.

     4.6 PMN has delivered to ETS audited financial statements of PMN dated June
30,  2002.  All  such   statements,   herein  sometimes  called  "PMN  Financial
Statements,"  are (and will be) complete  and correct in all  material  respects
and, together with the notes to these financial  statements,  present fairly the
financial  position and results of operations of PMN for the periods  indicated.
All  statements  of PMN will have been  prepared in  accordance  with  generally
accepted accounting principles.

     4.7 Since the dates of the PMN  Financial  Statements,  there have not been
any  material  adverse  changes  in the  business  or  condition,  financial  or
otherwise,  of PMN. PMN does not have any material  liabilities or  obligations,
secured or unsecured except as shown on the updated financials of PMN dated Sept
30,2002 (whether accrued, absolute, contingent or otherwise).

     4.8 There are no legal  proceedings  or  regulatory  proceedings  involving
material claims pending, or, to the knowledge of the officers of PMN, threatened
against PMN or affecting any of its assets or properties,  and PMN is not in any
material  breach or violation of or default  under any contract or instrument to
which PMN is a party,  and no event has occurred which with the lapse of time or
action by a third party could  result in a material  breach or  violation  of or
default by PMN under any contract or other instrument to which PMN is a party or
by which they or any of their respective properties may be bound or affected, or
under their respective  Articles of  Incorporation  or Bylaws,  nor is there any
court or  regulatory  order  pending,  applicable  to PMN.  There are,  however,
several  judgments  which  have been  disclosed  to ETS,  and are  listed on the
disclosure schedule 4.9 attached hereto and made a part hereof.

     4.9 PMN shall not enter into or consummate  any  transactions  prior to the
Effective  Date other than in the  ordinary  course of business  and will pay no
dividend,  or increase the  compensation of officers and will not enter into any
agreement or transaction  which would adversely  affect its financial  condition
except  pursuant  to the  proposed  minutes  of the  Board of  Directors  of PMN
presented herewith for approval by ETS.

     4.10 The representations and warranties of PMN shall be true and correct as
of the date hereof and as of the Effective Date.

                                       7
<PAGE>

     4.11 PMN corporate  books and records are true records of its actions.  PMN
will also deliver to ETS on or before the Closing  Date any reports  relating to
the financial  and business  condition of PMN which occur after the date of this
Agreement and any other  reports sent  generally to its  shareholders  after the
date of this Agreement.

     4.12 PMN has no employee benefit plan in effect at this time, however,  PMN
intends to adopt a 2002 Stock  Option and  Compensation  Plan which will provide
for the  issuance of up to 300,000  shares of common  stock,  on a  post-reverse
split basis.

     4.13 PMN is current in its filing  obligations under the federal securities
laws.  No  report  filed by PMN  with the  Securities  and  Exchange  Commission
contains any untrue  statement of a material fact or omits to state any material
fact necessary to make such  representation or warranty not misleading,  and all
such reports  comply as to form and substance in all material  respects with all
applicable SEC requirements.

     4.14 PMN agrees that all rights to indemnification now existing in favor of
the employees,  agents,  directors or officers of ETS and its  subsidiaries,  as
provided in the  Articles of  Incorporation  or Bylaws or otherwise in effect on
the date hereof shall survive the transactions contemplated hereby in accordance
with their terms, and PMN expressly assumes such indemnification  obligations of
ETS.

                                    ARTICLE V

              Obligations of the Parties Pending the Effective Date

     5.1 At all times prior to the Effective Date during regular business hours,
each party will  permit the other to examine its books and records and the books
and records of its subsidiaries  and will furnish copies thereof on request.  It
is recognized  that,  during the performance of this  Agreement,  each party may
provide the other parties with information  which is confidential or proprietary
information.  The recipient of such information  shall at all times protect such
information from disclosure, other than disclosure required by rule, regulation,
or law,  other than to members of its own or  affiliated  organizations  and its
professional advisers, in the same manner as it protects its own confidential or
proprietary  information  from  unauthorized   disclosure,   and  not  use  such
information to the competitive  detriment of the disclosing  party. In addition,
if this Agreement is terminated for any reason, each party shall promptly return
or  cause  to be  returned  all  documents  or  other  written  records  of such
confidential  or  proprietary  information,  together  with all  copies  of such
writings and, in addition,  shall either  furnish or cause to be  furnished,  or
shall destroy, or shall maintain with such standard of care as is exercised with
respect to its own  confidential or proprietary  information,  all copies of all
documents or other  written  records  developed or prepared by such party on the
basis of such confidential or proprietary  information.  No information shall be
considered  confidential or proprietary if it is (a) information  already in the
possession of the party to whom disclosure is made, (b) information  acquired by
the party to whom the disclosure

                                       8
<PAGE>

is made from other sources, or (c) information in the public domain or generally
available to interested  persons or which at a later date passes into the public
domain or becomes  available to the party to whom disclosure is made without any
wrongdoing by the party to whom the disclosure is made.

     5.2 PMN and ETS shall  promptly  provide each other with  information as to
any significant  developments  in the  performance of this Agreement,  and shall
promptly  notify  the  other if it  discovers  that any of its  representations,
warranties  and  covenants  contained  in  this  Agreement  or in  any  document
delivered  in  connection  with this  Agreement  was not true and correct in all
material respects or became untrue or incorrect in any material respect.

     5.3 All  parties to this  Agreement  shall  take all such  action as may be
reasonably  necessary and  appropriate and shall use their best efforts in order
to consummate the transactions contemplated hereby as promptly as practicable.

                                   ARTICLE VI

                             Procedure For Exchange

     6.1 At the Closing Date, the exchange  shall be effected  within 4 business
days after  receipt by M. A.  Littman,  as  attorney  for PMN, of the ETS common
stock  certificates  representing 90% of the issued and outstanding common stock
of ETS, together with the signed Exchange Agreements, containing the information
necessary  to issue the PMN shares to the  exchanging  shareholders  of ETS,  by
instructing the transfer agent of PMN to issue the new  certificates and sending
the certificates of PMN by Federal Express to the exchanging shareholders.

                                   ARTICLE VII

                           Conditions Precedent to the
                          Consummation of the Exchange

     The following are conditions precedent to the consummation of the Agreement
on or before the Effective Date:

     7.1  ETS  and  PMN  shall  have  performed  and  complied  with  all of its
respective  obligations  hereunder which are to be complied with or performed on
or before the  Effective  Date and PMN and ETS shall  provide one another at the
Closing with a certificate  to the effect that such party has performed  each of
the acts and  undertakings  required  to be  performed  by it on or  before  the
Closing Date pursuant to the terms of this Agreement.

     7.2 This Agreement,  the transactions  contemplated  herein shall have been
duly  and  validly  authorized,   approved  and  adopted,  at  meetings  of  the
shareholders of ETS duly and properly called for such purpose in accordance with
the applicable laws.

                                       9
<PAGE>

     7.3 No action,  suit or proceeding shall have been instituted or shall have
been  threatened  before any court or other  governmental  body or by any public
authority to restrain,  enjoin or prohibit the transactions contemplated herein,
or which might subject any of the parties hereto or their  directors or officers
to any material liability,  fine,  forfeiture or penalty on the grounds that the
transactions  contemplated  hereby,  the parties  hereto or their  directors  or
officers, have violated any applicable law or regulation or have otherwise acted
improperly in connection  with the  transactions  contemplated  hereby,  and the
parties  hereto  have been  advised  by  counsel  that,  in the  opinion of such
counsel,  such action, suit or proceeding raises substantial questions of law or
fact which could  reasonably  be decided  adversely  to any party  hereto or its
directors or officers.

     7.4 All actions,  proceedings,  instruments and documents required to carry
out this  Agreement and the  transactions  contemplated  hereby and the form and
substance of all legal  proceedings and related matters shall have been approved
by counsel for ETS and PMN.

     7.5  The  representations  and  warranties  made  by ETS  and  PMN in  this
Agreement shall be true as though such  representations  and warranties had been
made or given on and as of the Closing Date.

     7.6 ETS shall have furnished PMN with:

          (1) an agreement  from each ETS  shareholder  who is an "affiliate" of
     ETS as defined in the rules  adopted under the  Securities  Act of 1933, as
     amended,  to the effect that (a) the  affiliate is familiar  with SEC Rules
     144 and 145; (b) none of the shares of PMN common stock will be transferred
     by or through the  affiliate in violation of the Federal  Securities  Laws;
     (c) the affiliate  acknowledges that PMN is under no obligation to register
     the  sale,  transfer,  or  the  disposition  of  PMN  common  stock  by the
     affiliate.

          (2) Securities Laws Compliance.  Each shareholder of ETS shall sign an
     Exchange  Agreement as contained on Schedule A. It is anticipated  that the
     following  SEC  filings  will  need to be made as a result  of the Plan and
     Agreement  and the  exchange:  Forms  8-K,  8K12(g)  3,  13d and  13g,  and
     appropriate  amendments to the forms 8-k as may be necessary to include pro
     forma financials and consolidated financials.

     7.7  PMN  shall  furnish  ETS  with a  certified  copy of a  resolution  or
resolutions  duly  adopted  by the Board of  Directors  of PMN,  approving  this
Agreement and the transactions contemplated by it.

                                       10
<PAGE>
                                  ARTICLE VIII

                           Termination and Abandonment

     8.1 Anything  contained in this Agreement to the contrary  notwithstanding,
the Agreement may be terminated and abandoned at any time prior to the Effective
Date:

          (a) By mutual consent of ETS and PMN;

          (b) By ETS, or PMN, if any condition set forth in Article VII relating
     to the other party has not been met by the  effective  date or has not been
     waived in writing by the other party;

          (c) By ETS, or PMN, if any suit,  action or other  proceeding shall be
     pending or threatened by the federal or a state government before any court
     or  governmental  agency,  in which it is sought to  restrain,  prohibit or
     otherwise affect the consummation of the transactions contemplated hereby;

          (d)  By  any  party,  if  there  is  discovered  any  material  error,
     misstatement or omission in the  representations  and warranties of another
     party;

          (e) By any party if the Agreement Effective Date is not within 30 days
     from the date hereof, or if the Closing Date passes without performance.

     8.2 Any of the  terms or  conditions  of this  Agreement  may be  waived in
writing at any time by the party which is entitled  to the benefit  thereof,  by
action taken by its Board of Directors provided; however, that such action shall
be taken only if, in the judgment of the Board of  Directors  taking the action,
such waiver will not have a materially  adverse effect on the benefits  intended
under this Agreement to the party waiving such term or condition.

                                   ARTICLE IX

                        Termination of Representation and
                        Warranties and Certain Agreements

     9.1 The  respective  representations  and  warranties of the parties hereto
shall expire  with,  and be  terminated  and  extinguished  four years after the
Effective  Date of the  Agreement;  provided,  however,  that the  covenants and
agreements of the parties hereto shall survive in accordance with their terms.

                                       11
<PAGE>

                                    ARTICLE X

                                  Miscellaneous

     10.1 This Agreement embodies the entire agreement between the parties,  and
there have been and are no agreements,  representations  or warranties among the
parties other than those set forth herein or those provided for herein.

     10.2  To  facilitate  the  execution  of  this  Agreement,  any  number  of
counterparts  hereof may be executed,  and each such counterpart shall be deemed
to  be  an  original  instrument,  but  all  such  counterparts  together  shall
constitute but one instrument.

     10.3 All parties to this  Agreement  agree that if it becomes  necessary or
desirable to execute further instruments or to make such other assurances as are
deemed  necessary,  the party  requested  to do so will use its best  efforts to
provide such executed  instruments or do all things necessary or proper to carry
out the purpose of this Agreement.

     10.4 This  Agreement may be amended upon approval of the Board of Directors
of each party provided that the shares  issuable  hereunder shall not be amended
without approval of the requisite shareholders of ETS.

     10.5 Any notices,  requests, or other communications  required or permitted
hereunder shall be delivered  personally or sent by overnight  courier  service,
fees prepaid, addressed as follows:

        To: eTotalsource, Inc.:            1510 Poole Blvd.
                                           Yuba City, CA 95993

        To:  Premium Enterprises, Inc.:    7609 Ralston Road
                                           Arvada, CO 80002

or such other  addresses as shall be furnished in writing by any party,  and any
such notice or  communication  shall be deemed to have been given as of the date
received.

     10.6 No press release or public  statement  will be issued  relating to the
transactions  contemplated  by this Agreement  without prior approval of ETS and
PMN. However, either ETS or PMN may issue at any time any press release or other
public  statement  it believes on the advice of its counsel it is  obligated  to
issue to avoid liability  under the law relating to  disclosures,  but the party
issuing such press release or public statement shall make a reasonable effort to
give the other party prior  notice of and  opportunity  to  participate  in such
release or statement.

                                       12
<PAGE>

     10.7 The Board of Directors of PMN shall appoint the following  individuals
to the Board of Directors of PMN concurrent  with the closing of the transaction
contemplated in this agreement:

A)       Terry Eilers
B)       Virgil Baker
C)       Michael Sullinger
D)       Rich Barber
E)       Cody Morrow

     10.8 The Parties to this agreement  hereby agree as follows:  As soon after
closing as possible,  PMN shall take action to obtain shareholder approval of 1)
a name change to a name to eTotalsource,  Inc. and 2) a reverse split of one for
four shares of the issued and then  outstanding  shares of common  stock of PMN,
which reverse split will become effective at the same time as the name change.

     10.9 As part of the  inducement  to PMN to enter into this  agreement,  the
parties  agree  to the  concurrent  adoption  of an  irrevocable  "poison  pill"
resolution by the Board of Directors of PMN which shall be a continuing covenant
surviving  the closing  under this  agreement,  providing  for a two year period
within  which no actions  will be taken by PMN , its Board of  Directors  or any
successor to PMN, which would reverse split, consolidate,  reorganize, merge, or
in any way  reduce  the  number  of  outstanding  shares  of stock of PMN or any
successor  company  (which shall be known as the "No Reverse  Covenant")  except
that this  shall not apply to a proposed  one for 4 reverse  split of the issued
and outstanding  shares immediately after the closing of the share exchange with
the  shareholders  of ETS.  In the  event  that  the "No  Reverse  Covenant"  is
breached, the resolution and this covenant shall provide that it shall trigger a
grant by PMN of an immediate mandatory dividend to each shareholder of PMN as of
Sept 30, 2002, for each share owned after the new reverse split,  consolidation,
merger,  or reductions of outstanding  shares,  of a number of shares  inversely
proportional to the amount of the reverse split, except that shares subsequently
retired or repurchased by the company to reduce  outstanding shares shall not be
deemed a trigger of the No Reverse Covenant.

     10.10 Within ten days after the date of this Agreement,  five  shareholders
of ETS holding a total of 90% of the issued and outstanding  shares of ETS shall
join this Agreement by execution of the signature page hereon. In the event this
provision is not complied within the time specified,  this Agreement and Plan of
Reorganization shall be null and void and all agreements terminated.

     10.11 ETS shall pay or cause to be paid a total of  $125,000;  $50,000 as a
non-refundable  deposit  herewith  upon  signing  hereof and  $75,000 at closing
hereunder, which funds shall be used to pay legal fees and costs related to this
transaction,  accounting  fees  and  audit  fees as due,  transfer  agent  fees,
consulting fees due, and fees for services rendered.

                                       13
<PAGE>

     IN WITNESS  WHEREOF,  the parties  have set their hands and seals this 18th
day of December , 2002.

                                            Premium Enterprises, Inc.

                                            By: /s/ Wesley F. Whiting
                                                -------------------------
                                                     President

                                            Attest:________________________
                                                     Secretary

                                            eTotalsource, Inc.

                                            By:
                                              -----------------------------
                                                     President

                                            Attest: ________________________
                                                     Secretary

     eTotalsource,   Inc.  SHAREHOLDERS  (by  signature  below  or  pursuant  to
execution of the  Exchange  Agreement  and  Representations  incorporating  this
Agreement by reference.)

         Signatures                         Please Print Names

         1_________________________         _____________________________

         2_________________________         _____________________________

         3_________________________         _____________________________

         4_________________________         _____________________________

         5_________________________         _____________________________

                                       14
<PAGE>

                                  Schedule 4.9

Judgments:

1.   Ally  Capital  vs.  Premium  Enterprises-Boulder  County  District  Court -
     originally for $47,000, approximately, in 1996. The Secretary of State does
     not show Ally  Capital as a company  registered  to do business in Colorado
     any more. This judgment still shows as outstanding.

2.   Tusco,  Inc. vs. Premium  Enterprises,  Inc. Adams County  District Court -
     originally for $75,000  approximately in 1997. This was a landlord suit for
     rent and damages, and is enforceable for 20 years, and then may be renewed.
     No action has ever been taken to enforce this.

     Other Payables  include old legal and accounting  fees accrued in 1994-1996
upon  which no suit has been  filed  and  which are now  beyond  the  applicable
Statute of  Limitations  in Colorado  (six  years).  They can be written off the
payables  list (next year is probably  prudent).  There are  payables  for legal
fees, accounting,  management compensation and advances,  which are current, and
these items will be settled  with the  issuance of a total of 300,000 S-8 shares
of common stock (post split) and 500,000 restricted shares of common stock (post
reverse) of PMN after the closing of this  transaction.  The parties  agree that
the  judgments  above,  if  sought  to be  enforced,  are the  continuing  legal
obligation  of PMN and any  shares or cash  which  may be used to  settle  these
debts, are not the  responsibility of former management or employees of PMN, nor
any other  agent of PMN,  and PMN shall  bear the sole  responsibility  for such
judgments to the extent necessary to resolve any enforcement thereof.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]