Document:

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                                                                    EXHIBIT 10.5

                          GENERAL SECURITY AGREEMENT
                          --------------------------

THIS SECURITY AGREEMENT is dated for reference March 7, 2000

BETWEEN:

          e-comerce group, inc., a Nevada corporation, having a place of
          business at 3675 Pecos-McLeod, Suite 1400, Las Vegas, Nevada, U.S.A.
          89121-3881

          (the "Debtor")

AND:

          S.C. MANAGEMENT LTD,, a corporation organized under the laws of
          the Bahamas and having a place of business at Suite L, King's Court,
          Nassau, Bahamas

          (the "Secured Party")

1.        SECURITY INTEREST
          -----------------

1.1       For consideration and as security for the payment and performance of
the Obligations referred to in Clause 3 hereof, the Debtor, subject to the
exceptions set out in Clause 2, hereby mortgages, charges, assigns and transfers
to the Secured Party, and grants to the Secured Party a security interest in,
all the Debtor's right, title and interest in and to all presently owned or held
and after acquired or held personal property, assets and undertaking of the
Debtor (including real property), of whatever nature or kind and all proceeds
thereof and therefrom (all of which is hereinafter collectively called the
"Collateral") including without limitation, the following:

     (a)  all equipment of whatsoever nature and kind, including, without
          limitation, all machinery, tools, plant, furniture, supplies and
          vehicles of whatsoever nature and kind, and all parts, components,
          attachments, accessories, accessions, replacements, substitutions,
          additions and improvements to any of the foregoing (all of which is
          hereinafter collectively call the "Equipment");

     (b)  heating, ventilating and air-conditioning equipment; hot water tanks;
          interior doors and partitions; screen windows and screen doors; light
          fixtures; suspended ceiling tiles; wall-to-wall carpeting; built-in
          furniture; plumbing fixtures; communication systems; control
          equipment; escalators and elevators; air filtering devices; awnings;
          window blinds; curtain rods and runners; tracks and valances; fixed
          mirrors; sprinkler equipment; fire fighting equipment; and all other
          fixtures;

     (c)  all debts, accounts, claims, moneys and choses in action which now
          are, or which may at any time hereafter be, due or owing to or owned
          by the Debtor, including, without limitation, all rents payable and
          all books, records, documents, papers and

<PAGE>

          electronically recorded data recording, evidencing or relating to the
          said debts, accounts, claims, moneys and choses in action or any part
          thereof (all of which are hereinafter collectively called the
          "Accounts");

     (d)  all documents of title, chattel paper, instruments, securities and
          money, including prepaid rents and rental and damage deposits, and all
          other goods of the Debtor that are not Equipment or Accounts; and

     (e)   all contractual rights, licenses, goodwill, patents, trademarks,
           trade names, copyrights, know-how, software and other intellectual
           property of the Debtor, including all service, leasing and management
           contracts, and all other choses in action of the Debtor of every kind
           which now are, or which may at any time hereafter be, due or owing to
           or owned by the Debtor, and all other intangible property of the
           Debtor which is not Accounts, chattel paper, instruments, documents
           of title securities or money.

2.         EXCEPTIONS
           ----------

2.1        The last day of the term created by any lease or agreement therefor
is hereby excepted out of any charge or security interest created by this
Security Agreement but the Debtor will stand possessed of the reversion thereby
remaining upon trust to assign and dispose thereof to  any third party as the
Secured Party shall direct.

2.2        There shall be excluded from the security interests hereby created
any consumer goods of the Debtor.

3.         OBLIGATIONS SECURED
           -------------------

3.1        This Security Agreement and the security interests hereby created are
in addition to and not in substitution for any other security interest now or
hereafter held by the Secured Party from the Debtor or from any other person
whomsoever and will be general and continuing security for the payment of all
indebtedness and liability of the Debtor to the Secured Party (including
interest thereon), any  ultimate balance thereof, including all future
advances and re-advances and the performance of all obligations under that
certain convertible promissory not made by the Debtor in favour of the Secured
Party in the stated principal amount of U.S.$352,500, as the same may be
amended, modified, supplemented, restated or replaced from time to time (all of
which indebtedness, liability, and obligations are hereinafter collectively
called the "Obligations").

4.         PROHIBITIONS
           ------------

4.1        Without the prior written consent of the Secured Party the Debtor
will not have power to

     (a)   create or permit to exist any security interest in, charge,
encumbrance or lien over, or claim against any of its property, assets, or
undertaking which ranks or could in any event rank in priority to or pari passu
with any security interest created by this Security Agreement, or

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     (b) grant, sell, or otherwise assign its chattel paper.

5.   ATTACHMENT
     ----------

5.1  The Debtor acknowledges that the security interests hereby created attach
upon the execution of this Security Agreement (or in the case of any after
acquired property, upon the date of acquisition thereof), that value has been
given, and that the debtor has, or in the case of after acquired property will
have, rights in the collateral.

6.   REPRESENTATIONS AND WARRANTIES
     ------------------------------

6.1  The Debtor, if a company or partnership, represents and warrants that this
Security Agreement is granted in accordance with resolutions of the directors
(and of the shareholders as applicable) or of the partners, as the case may be,
of the Debtor and all other matters and things have been done and performed so
as to authorize and make the execution and delivery of this Security Agreement,
and the performance of the Debtor's obligations hereunder, legal, valid and
binding.

6.2  The Debtor represents and warrants that the Debtor lawfully owns and
possesses all presently held Collateral and has good title thereto, free from
all security interests, charges, encumbrances, liens and claims, save only the
charges or security interests, which may have been disclosed to the Secured
Party and consented to in writing by the Secured Party, and the Debtor has good
right and lawful authority to grant a security interest in the Collateral as
provided by this Security Agreement.

7.   COVENANTS OF THE DEBTOR
     -----------------------

7.1  The Debtor covenants that at all times while this Security Agreement
remains in effect the Debtor will:

     (a)  defend the title to the Collateral for the benefit of the Secured
          Party against the claims and demands of all persons;

     (b)  fully and effectually maintain and keep maintained the security
          interests hereby created valid and effective;

     (c)  maintain insurance on the Collateral with an insurer, of kinds, for
          amounts and payable to such person or persons, all as the Secured
          Party may require;

     (d)  maintain the Collateral in good order and repair;

     (e)  forthwith pay:

          (i)  all taxes, assessments, rates, duties, levies, government fees,
               claims and dues lawfully levied, assessed or imposed upon it or
               the Collateral when due, unless the Debtor shall in good faith
               contest its obligations so to pay and will furnish such security
               as the Secured Party may require; and
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          (ii)   all security interests, charges, encumbrances, liens and claims
                 which rank or could in any event rank in priority to any
                 security interest created by this Security Agreement, other
                 than the charges or security interests, if any, shown in the
                 Schedule hereto and those consented to in writing by the
                 Secured Party;

     (f)  forthwith pay all costs, charges, expenses and legal fees and
          disbursements (on a solicitor and his own client basis) which may be
          incurred by the Secured Party in:

          (i)    inspecting the Collateral;

          (ii)   negotiating, preparing, perfecting and registering this
                 Security Agreement and other documents, whether or not relating
                 to  this Security Agreement;

          (iii)  investigating title to the Collateral;

          (iv)   taking, recovering, keeping possession of and insuring the
                 Collateral; and

           (v)   all other transactions and proceedings taken in connection with
                 the preservation of the Collateral and the enforcement of this
                 Security Agreement and of any other security interest held by
                 the Secured Party as security for the Obligations;

     (g)  at the Secured Party's request at any time and from time to time
          execute and deliver such further and other documents and instruments
          and do all acts and things as the Secured Party in its absolute
          discretion requires in order to confirm and perfect, and maintain
          perfection of, the security interests and charges hereby created in
          favor of the Secured Party upon any of the Collateral;

     (h)  notify the Secured Party promptly of;

          (i)    any change in the information contained herein relating to the
                 Debtor, its address, its business or the Collateral;

          (ii)   the details of any material acquisition of the Collateral;

          (iii)  any material loss or damage to the Collateral;

          (iv)   any material default by any account debtor in payment or other
                 performance of his obligations to the Debtor with respect to
                 any Accounts; and

          (v)    the return to or repossession by the Debtor of the Collateral
                 where such return or repossession of the Collateral is material
                 in relations to the business of the Debtor;
<PAGE>

     (i)  prevent the Collateral from being sold, leased, or otherwise disposed
          of except as permitted hereby, or from being or becoming an accession
          to other property not covered by this Security Agreement;

     (j)  permit the Secured Party and its representatives, at all reasonable
          times, access to all its property, assets and undertaking and to all
          its books of account and records for the purpose of inspection and
          render all assistance necessary for such inspections; and

     (k)  deliver to the Secured Party from time to time promptly upon request:

         (i)   any documents of title, instruments, securities and chattel
               paper constituting, representing or relating to Collateral;

         (ii)  all books of account and all records, ledgers, reports,
               correspondence, schedules, documents, statements, lists and other
               writings relating to the Collateral for the purpose of
               inspecting, auditing, or copying the same;

         (iii) all financial statements prepared by or for the Debtor regarding
               its operations; and

         (iv)  all policies and certificates of insurance relating to the
               Collateral.

7.2      The Debtor, if a company, covenants that at all times while this
Security Agreement remains in effect it will not, without the prior written
consent of the Secured Party:

     (a)  alter any of its constating instruments or its corporate organization,

     (b)  become a party to any transaction whereby all or a substantial part of
          the Collateral would become the property of any other person, whether
          by way of reconstruction, reorganization, amalgamation, merger,
          transfer, sale, lease or otherwise; or

     (c)  materially change the nature of the Debtor's business or operations.

8.        PERFORMANCE OF OBLIGATIONS
          --------------------------

8.1       If the Debtor fails to perform its Obligations hereunder, the Secured
Party may, but will not be obligated to, perform any or all of such Obligations
without prejudice to any other rights and remedies of the Secured Party
hereunder, and any payments made and any costs, charges, expenses and legal fees
and disbursements (on a solicitor and his own client basis) incurred in
connection therewith will be payable by the Debtor to the Secured Party
forthwith with interest until paid at the highest rate borne by any of the
Obligations and such amounts will be a charge upon and security interest in the
Collateral in favor of the Secured Party prior to all claims subsequent to this
Security Agreement.

<PAGE>

9.             RESTRICTIONS ON SALE OR DISPOSAL OF COLLATERAL
               ----------------------------------------------

9.1            Except as herein provided, the Debtor will not, without the prior
written consent of the Secured Party:

          (a)  sell, lease or otherwise dispose of the Collateral;

          (b)  release, surrender or abandon possession of the Collateral: or

          (c)  move or transfer the Collateral from its present location,

save in the ordinary course of the Debtor's business.

10.            DEFAULT
               -------

10.1           The Debtor will be in default under this Security Agreement,
unless waived by the Secured Party, in any of the following events:

          (a)  the Debtor makes default in payment when due of any indebtedness
               or obligation of the Debtor to the Secured Party or the Debtor is
               in breach of any term, condition, obligation or covenant to the
               Secured Party and the Debtor fails to cure such default or breach
               within ten (10) business days after receiving notice thereof from
               the Secured Party;

          (b)  the Debtor fails to observe or perform any of the provisions of
               any agreement or commitment pursuant to which any moneys were
               advanced by the Secured Party to the Debtor, and the Debtor fails
               to cure such obligation within ten (10) business days after
               receiving notice thereof from the Secured Party;

          (c)  any representation or warranty made by the Debtor or any of its
               officers or directors in connection with any indebtedness or
               liability of the Debtor to the Secured Party hereby secured
               proves at any time to be materially incorrect as of the date
               made;

          (d)  the Debtor becomes bankrupt or insolvent or makes an assignment
               for the benefit of, a proposal to, or an arrangement with its
               creditors, or any action is taken or proceeding instituted
               whether by the Debtor or any other person whereby the Debtor may
               be dissolved, wound-up, reorganized, or declared bankrupt or
               insolvent;

          (e)  a receiver or receiver-manager is appointed in respect of the
               Debtor or any part of the Collateral;

          (f)  any execution, sequestration, extent, or any other process of any
               kind is levied or enforced upon or against the Collateral or any
               part thereof and remains unsatisfied for a period of 10 days;

<PAGE>

     (g)  without the prior written consent of the Secured Party, the Debtor
          creates or permits to exist any charge, encumbrance or lien on, or
          claim against or any security interest in, any of the Collateral which
          ranks or could in any event rank in priority to or pari passu with any
          security interest or charge created by this Security Agreement;

     (h)  the holder of any other charge, encumbrance or lien on, or claim
          against, or security interest in, any of the Collateral does anything
          to enforce or realize on such charge, encumbrance, lien, claim or
          security interest;

     (i)  if the Debtor is a company or a partnership, an order is made or an
          effective resolution is passed for the winding up of the Debtor;

     (j)  the Debtor, if a company, enters into any reconstruction,
          reorganization, amalgamation, merger or other similar arrangement with
          any other person;

     (k)  the Debtor ceases or threatens to cease to carry on its business;

     (l)  the Debtor, if an individual, dies or is declared incompetent by a
          court of competent jurisdiction; or

     (m)  the Secured Party, acting reasonably, believes that there has been a
          material adverse change in the financial condition of the Debtor or
          that any of the Collateral is or is about to be placed in jeopardy.

11.       ENFORCEMENT
          -----------

11.1      Upon any default under this Security Agreement the Secured Party may
declare any or all of the Obligations not payable on demand to become
immediately due and payable and the security hereby constituted will immediately
become enforceable. To enforce and realize on the security constituted by this
Security Agreement the Secured Party may take any action permitted by law or in
equity, as in may deem expedient, and in particular without limiting the
generality of the foregoing, the Secured Party may do any of the following:

     (a)  appoint by instrument a receiver, receiver and manager or a
          receiver-manager (the person so appointed is hereinafter called the
          "Receiver") of the Collateral, with or without bond as the Secured
          Party may determine, and from time to time in its absolute discretion
          remove such Receiver and appoint another in its stead;

     (b)  enter upon any premises of the Debtor and take possession of the
          Collateral with power to exclude the Debtor, its agents and its
          servants therefrom, without becoming liable as a mortgagee in
          possession;

     (c)  preserve, protect and maintain the Collateral and make such
          replacements thereof and repairs and additions thereto as the Secured
          Party may deem advisable;

     (d)  sell, lease or otherwise dispose of all or any part of the Collateral,
          whether by public or private sale or lease or otherwise, in such
          manner, at such price as can

<PAGE>

          be reasonably obtained therefor and on such terms as to credit and
          with such conditions of sale and stipulations as to title or
          conveyance or evidence of title or otherwise as to the Secured Party
          may seem reasonable, provided that if any sale is on credit the Debtor
          will not be entitled to be credited with the proceeds of any such
          sale, lease or other disposition until the moneys therefor are
          actually received; and

     (e)  exercise all of the rights and remedies of a secured party under the
          UCC or any other jurisdiction as may afford to the Secured Party
          rights against the Debtor or the Collateral.

11.2      A Receiver appointed pursuant to this Security Agreement will be the
agent of the Debtor and not of the Secured Party and, to the extent permitted by
law or to such lesser extent permitted by its appointment, will have all the
powers of the Secured Party hereunder, and in addition will have power to carry
on the business of the Debtor and for such purpose form time to time to borrow
money either secured or unsecured, and if secured by a security interest on any
of the Collateral; such security interest may rank before or pari passu with or
behind any security interest created by this Security Agreement, and if it does
not so specify such security interest will rank before the security interests
created by this Security Agreement.

11.3      Subject to the claims, if any, of the creditors of the Debtor ranking
in priority to this Security Agreement, all amounts realized from the
disposition of Collateral pursuant to this Security Agreement will be applied as
the Secured Party, in its absolute discretion, may direct as follows:

     (a)  in payment of all costs, charges and expenses (including legal fees
          and disbursements on a solicitor and his own client basis) incurred by
          the Secured Party in connection with or incidental to:

          (i)   the exercise by the Secured Party of all or any of the powers
                granted to it pursuant to this Security Agreement; and

          (ii)  the appointment of the Receiver and the exercise by the Receiver
                of all or any of the powers granted to it pursuant to this
                Security Agreement, including the Receiver's reasonable
                remuneration and all outgoings properly payable by the Receiver;

     (b)  in or toward payment to the Secured Party of all principal and other
          moneys (except interest) due in respect of the Obligations; and

     (c)  in or toward payment to the Secured party of all interest remaining
          unpaid in respect of the Obligations.

Subject to applicable law and the claims, if any, of other creditors of the
Debtor, any surplus will be paid to the Debtor.
<PAGE>

12.       DEFICIENCY
          ----------

12.1      If the amounts realized from the disposition of the Collateral are not
sufficient to pay the Obligations in full the Debtor will immediately pay to the
Secured Party the amount of such deficiency.

13.       RIGHTS CUMULATIVE
          -----------------

13.1      All rights and remedies of the Secured Party set out in this Security
Agreement are cumulative and no right or remedy contained herein is intended to
be exclusive but each will be in addition to every other right or remedy
contained herein or in any existing or future security agreement or now or
hereafter existing at law, in equity or by statute, or pursuant to any other
agreement between the Debtor and the Secured Party that may be in effect from
time to time.

14.       LIABILITY OF SECURED PARTY
          --------------------------

14.1      The Secured Party will not be responsible or liable for any debts
contracted by it, for damages to persons or property or for salaries or
non-fulfilment of contracts during any period when the Secured Party shall
manage the Collateral upon entry, as herein provided, nor will the Secured Party
be liable to account as mortgagee in possession or for anything except actual
receipts or be liable for any loss on realization or for any default or omission
for which a mortgagee in possession may be liable. The Secured Party will not be
bound to do, observe or perform or to see to the observance or performance by
the Debtor of any obligations or covenants imposed upon the Debtor nor will the
Secured Party, in the case of securities, instruments or chattel paper, be
obliged to preserve rights against other persons, nor will the Secured Party be
obliged to keep any of the Collateral identifiable. The Debtor hereby waives any
applicable provision of law permitted to be waived by it which imposes higher or
greater obligations upon the Secured Party than aforesaid.

15.       APPOINTMENT OF ATTORNEY
          -----------------------

15.1      The Debtor hereby irrevocably appoints the Secured Party or the
Receiver, as the case may be, with full power of substitution, to be the
attorney of the Debtor for and in the name of the Debtor to sign, endorse or
execute under seal or otherwise any deeds, documents, transfers, cheques,
instruments, demands, assignments, assurances, consents, financing statements,
financing change statements or notices that the Debtor is obliged to sign,
endorse or execute and generally to use the name of the Debtor and to do all
things as may be necessary or incidental to the exercise of all or any of the
powers conferred on the Secured Party or the Receiver, as the case may be,
pursuant to this Security Agreement.

16.       ACCOUNTS
          --------

16.1      Notwithstanding any other provision of this Security Agreement, the
Secured Party may collect, realize, sell or otherwise deal with the Accounts or
any part thereof in such manner, upon such terms and conditions and at such time
or times, whether before or after default, as may seem to be advisable, and
without notice to the Debtor, except in the case of disposition after default
and then subject to the provisions of the UCC or other applicable law.
<PAGE>

All moneys or other forms of payment received by the Debtor in payment of any
Account will be received and held by the Debtor in trust for the Secured Party.

17.       APPROPRIATION OF PAYMENTS
          -------------------------

17.1      Any and all payments made in respect of the Obligations from time to
time and moneys realized from any security interests held therefor (including
moneys collected in accordance with or realized on any enforcement of this
Security Agreement) may be applied to such part or parts of the Obligations as
the Secured Party may see fit, and the Secured Party may at all times and from
time to time change any appropriation as the Secured party may see fit.

18.       LIABILITY TO ADVANCE
          --------------------

18.1      None of the preparation, execution, perfection and registration of
this Security Agreement or the advance of any moneys will bind the Secured
Party to make any advance or loan or further advance or loan, or renew any note
or extend any time for payment of any indebtedness or liability of the Debtor to
the Secured Party.

19.       WAIVER
          ------

19.1      The Secured Party may from time to time and at any time waiver in
whole or in part any right, benefit or default under any clause of this Security
Agreement but any such waiver of any right, benefit or default on any occasion
will be deemed not to be a waiver of any such right, benefit or default
thereafter, or of any right, benefit or default, as the case may be.

20.       NOTICE
          ------

20.1      Notice may be given to either party by sending it through the post in
prepaid mail or delivered to the party for whom it is intended, at the
principal address of such party set out on the first page hereof or at such
other address as may be given in writing by such party to the other, and any
notice if posted will be deemed to have been given at the expiration of three
business days after posting and if delivered, on delivery.

21.       EXTENSIONS
          ----------

21.1      The Secured Party may grant extensions of time and other indulgences,
take and give up security, accept compositions, compound, compromise, settle,
grant releases and discharges, refrain from perfecting or maintaining perfection
of security interests, and otherwise deal with the Debtor, account debtors of
the Debtor, sureties and others and with the Collateral and other security
interests as the Secured Party may see fit without prejudice to the liability of
the Debtor or the Secured Party's right to hold and realize on the security
constituted by this Security Agreement.

22.       NO MERGER
          ---------

22.1      This Security Agreement will not operate so as to create any merger or
discharge of any of the Obligations, or any assignment, transfer, guarantee,
lien, contract, promissory note,
<PAGE>

bill of exchange or security interest of any form held or which may hereafter be
held by the Secured party from the Debtor or from any other person whomsoever.
The taking of a judgment with respect to any of the Obligations will not operate
as a merger of any of the covenants contained in this Security Agreement.

23.       ASSIGNMENT
          ----------

23.1      The Secured Party may, without further notice to the Debtor, at any
time assign, transfer or grant a security interest in this Security Agreement
and the security interests granted hereby. The Debtor expressly agrees that the
assignee, transferee or secured party, as the case may be, will have all of the
Secured Party's rights and remedies under this Security Agreement and the Debtor
will not assert any defence, counterclaim, right of set-off or otherwise any
claim which it now has or hereafter acquires against the Secured Party in any
action commenced by such assingee, transferee or secured party, as the case may
be, and will pay the Obligations to the assignee, transferee or secured party,
as the case may be, as the Obligations become due.

24.       SATISFACTION AND DISCHARGE
          --------------------------

24.1      Any partial payment or satisfaction of the Obligations, or any ceasing
by the Debtor to be indebted to the Secured Party, will be deemed not to be a
redemption or discharge of this Security Agreement. The Debtor will be entitled
to a release and discharge of this Security Agreement upon full payment and
satisfaction of all Obligations and upon written request by the Debtor and
payment to the Secured party of all costs, charges, expenses and legal fees and
disbursements (on a solicitor and his own client basis) incurred by the Secured
Party in connection with the Obligations and such release and discharge.

25.       ENUREMENT
          ---------

25.1      This Security Agreement will enure to the benefit of the Secured Party
and its successors and assigns, and will be binding upon the respective heirs,
executors, personal representatives, successors and permitted assigns of the
Debtor.

26.       INTERPRETATION
          --------------

26.1       In this Security Agreement:

     (a)   "Collateral" has the meaning set out in Clause 1 hereof and any
           reference to Collateral will, unless the context otherwise requires,
           be deemed a reference to Collateral as a whole or any part thereof;

     (b)   "Debtor" and the personal pronoun "it" or "its" and any verb
           relating thereto and used therewith will be read and construed as
           required by and in accordance with the context in which such words
           are used depending upon weather the Debtor is one or more
           individuals, corporations or partnerships and, if more than one, will
           apply and be binding upon each of them severally; and

     (c)   "the UCC" means the Uniform Commercial Code applicable in Nevada and
           all regulations thereunder as amended from time to time.
<PAGE>

26.2      Words and expressions used herein that have been defined in the UCC
will be interpreted in accordance with their respective meanings given in the
UCC unless otherwise defined herein or unless the context otherwise requires.

26.3      The invalidity or unenforceability of the whole or any part of any
clause of this Security Agreement will not affect the validity or enforceability
of any other clause or the remainder of such clause.

26.4      The headings of the clauses of this Security Agreement have been
inserted for reference only and do not define, limit, alter or enlarge the
meaning of any provision of this Security Agreement.

26.5      This Security Agreement will be governed by the laws of Nevada,
excluding the body of law relating to choice of laws.

27.       COPY OF AGREEMENT AND FINANCING STATEMENT
          -----------------------------------------

27.1      The Debtor hereby:

     (a)  acknowledges receipt of a copy of this Security Agreement, and

     (b)  waives all rights to receive from the Secured Party a copy of any
          financing statement, financing change statement or verification
          statement filed at any time in respect of this Security Agreement.

IN WITNESS WHEREOF the Debtor has executed this Security Agreement as of the
date set forth below.

e-commerce group, inc.

Per:   /s/ David Wong                      Per:   /s/ D. Wood
       ------------------------------             ------------------------------
       Signature                                  Signature

Dated: March 7, 2000AGREEMENT AND PLAN OF SHARE EXCHANGE

      THIS AGREEMENT AND PLAN OF SHARE EXCHANGE (the "Agreement") dated as of
this 9th day of March, 2000, by and among LEISURE TRAVEL GROUP, INC., a Delaware
corporation (the "Company"), LEISURE TRAVEL GROUP LIMITED, a private limited
company organized under the laws of England and Wales ("LTGL"), CIGNET VENTURES
LIMITED, a private limited company organized under the laws of Guernsey Channel
Islands ("Cignet"), RED KITE VENTURES LIMITED, a private limited company
organized under the laws of Guernsey Channel Islands ("Red Kite"), INTERNET PLC,
a private limited company organized under the laws of the British Virgin
Islands ("IPC"), TECHNOLOGY FINANCE LIMITED, a private limited company
organized under the laws of the British Virgin Islands ("TFL"), RAYMOND J. PEEL
("Peel"), MILNER LABORATORIES LIMITED, a private limited company ("Milner"),
PHILIP MASON ("Mason"), STEPHEN LAST ("Last"), ROD RODGERS ("Rodgers"), and
DAVID MARRIOTT ("Marriott"). Red Kite, IPC, TFL and Milner are sometimes
hereinafter collectively referred to herein as the "LTGL Shareholders," Cignet,
Mason, Rodgers and Last are sometimes hereinafter collectively referred to
herein as the "GHG Shareholders," and the LTGL Shareholders and the GHG
Shareholders are sometimes hereinafter collectively referred to herein as the
"Shareholders." The Company and the Shareholders are hereinafter sometimes
collectively referred to as the "Parties."

      WHEREAS, the Board of Directors of the Company deems it advisable and in
the best interests of the Company that the Company acquire all of the issued and
outstanding share capital of LTGL, which currently owns 100% of the share
capital OF MISS ELLIE'S WORLD TRAVEL LIMITED, a private limited company
organized under the laws of England and Wales ("Miss Ellie's) and ILIOS TRAVEL
LIMITED, a private limited company organized under the laws of England and Wales
("Ilios"); and

      WHEREAS, the shareholders and Board of Directors of the Company and LTGL
deems it advisable and in the best interests of the Company and LTGL that LTGL
acquire all of the issued and outstanding share capital of GRAND HOTEL GROUP
LIMITED, a private limited company organized under the laws of England and Wales
("GHG"); and

      WHEREAS, the shareholders and Board of Directors of the Company and LTGL
deems it advisable and in the best interests of the Company and LTGL that LTGL
also acquire 49% of the issued and outstanding share capital of TRRRAVEL.COM,
LTD., a private limited company organized under the laws of England and Wales
("Trrravel.com"), and

      WHEREAS, the case of each of the above acquisitions, the holders of the
share capital of each of LTGL, GHG and Trrravel.com will receive in exchange for
the share capital of such Acquired Corporations newly issued shares of common
stock, par value $0.001 per share, of the Company (the "Company Common Stock"),
all upon and subject to the terms and conditions contained in this Agreement
(the "Share Exchange"); and

                                                                               1
<PAGE>

      WHEREAS, the shareholders of each of the Acquired Corporations and the
Company have approved and adopted this Agreement as a "plan of reorganization"
within the meaning of Section 368(a)(1)(B) of the Internal Revenue Code of 1986,
as amended.

      NOW, THEREFORE, in consideration of the premises and the mutual
agreements, provisions, and conditions contained herein, and for other good and
valuable consideration, the adequacy and receipt of which are hereby
acknowledged, the parties hereto agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      As used in this Agreement, the following terms shall have the following
meanings, unless the context shall otherwise require:

            (a) "Acquired Corporations" shall mean the collective reference to
      LTGL (including its Miss Ellie's and Ilios subsidiaries), GHG and
      Trrravel.com.

            (b) "LTGL Escrowed Shares" shall mean all, and not less than all
                 of the issued and outstanding ordinary shares of LTGL.

            (c) "GHG Escrowed Shares" shall mean all, and not less than all
                 of the issued and outstanding ordinary shares of GHG.

            (d) "Trrravel.com Escrowed Shares" shall mean all, and not less
                 than all of the issued and outstanding ordinary shares of
                 Trrravel.com.

            (e) "Company Common Stock" shall mean the common stock, par value
      $0.001 per share of the Company.

            (f) "Company IPO" shall mean the initial public offering of shares
      of Company Common Stock pursuant to a registration statement on Form S-1
      or other applicable form of registration (the "Registration Statement")
      which shall be declared effective by the United States Securities and
      Exchange Commission ("SEC"), and the trading of such shares of Company
      Common Stock on the Nasdaq Stock Exchange or other national securities
      exchange in the United States.

            (g) "Effective Date" shall mean the date on which the SEC shall
      declare effective the Registration Statement and related prospectus in
      connection with the Company IPO.

            (h) "Rank Indebtedness" shall mean all indebtedness for money
      borrowed, whether or not evidenced by notes, which shall be owed on the
      Effective Date by GHG or any subsidiary of GHG to The Rank Group plc or
      any of its subsidiaries or affiliates.

                                                                               2
<PAGE>

                                   ARTICLE II
                     TERMS AND PROVISIONS OF SHARE EXCHANGE

      Section 2.01 Share Exchange.

      (a) Transfer of Share Capital of Acquired Corporations. Upon the terms and
subject to the conditions herein contained, including, without limitation, the
conditions contained in Article VI hereof, at the Effective Date:

            (i) the GHG Shareholders shall sell, assign, transfer and deliver to
      LTGL, and LTGL shall acquire from the GHG Shareholders all right, title
      and interest in and to the GHG Escrowed Shares, representing all, and
      not less than all, of the outstanding share capital of GHG as at the
      Effective Date, free and clear of all liens and encumbrances thereon;

            (ii) TFL shall sell, assign, transfer and deliver to LTGL, and
      LTGL shall acquire from TFL all right, title and interest in and to
      the Trrravel.com Escrowed Shares, representing 49% of the issued and
      outstanding share capital of Trrravel.com as at the Effective Date, free
      and clear of all liens and encumbrances thereon; and

            (iii) immediately following the transfers contemplated by clauses
      (i) and (ii) of this Section 2.01(a), the LTGL Shareholders shall sell,
      assign, transfer and deliver to the Company, and the Company shall acquire
      from the LTGL Shareholders all right, title and interest in and to an
      aggregate of the LTGL Escrowed Shares, representing all, and not less
      than all, of the outstanding share capital of LTGL as at the Effective
      Date, free and clear of all liens and encumbrances thereon;

      In furtherance of the foregoing, on the Effective Date:

            (x) the GHG Shareholders shall deliver to LTGL share certificates
      representing all of the issued and outstanding share capital of GHG as at
      the Effective Date, duly endorsed in blank for transfer,

            (y) TFL shall deliver to LTGL share certificates representing 49%
      of the issued and outstanding share capital of Trrravel.com as at the
      Effective Date, duly endorsed in blank for transfer; and

            (z) the LTGL Shareholders shall deliver to the Company share
      certificates representing all of the issued and outstanding share capital
      of LTGL as at the Effective Date, duly endorsed in blank for transfer,

      (b) Issuance of Company Common Stock. In consideration for the transfer
and assignment of all the issued and outstanding share capital of GHG and 49% of
the issued and outstanding share capital of Trrravel.com to LTGL, and the
transfer and

                                                                               3
<PAGE>

assignment of all the issued and outstanding share capital of LTGL to the
Company, and against delivery of the certificates representing such share
capital as provided in Section 1.1(a) hereof, at the Effective Date, the Company
shall issue an aggregate of 5,060,000 shares of Common Stock to the
Shareholders, as follows:

            (i) to the GHG Shareholders an aggregate of 3,700,000 shares of
      Company Common Stock, in the individual amounts among the GHG Shareholders
      as set forth opposite their respective names on Schedule 1 annexed hereto
      and made a part hereof;

            (ii) to the LTGL Shareholders, an aggregate of 940,000 shares of
      Company Common Stock, in the individual amounts among the GHG Shareholders
      as set forth opposite their respective names on Schedule 2 annexed hereto
      and made a part hereof;

            (iii) to TFL, 220,000 shares of Company Common Stock; and

            (iv) to Milner Laboratories Limited, 200,000 shares of Company
      Common Stock.

      Section 2.02 Taking of Necessary Action. the Company, LTGL and the
Shareholders shall take all such actions as may be necessary or appropriate in
order to effectuate the transactions contemplated by this Agreement. If, at any
time after the Effective Date, any further action is necessary or desirable to
carry out the purposes of this Agreement, to vest the Company with title to 100%
of the issued and outstanding LTGL Escrowed Shares, or to vest LTGL with title
to 100% of the issued and outstanding GHG Escrowed Shares and 49% of the issued
and outstanding Trrravel.com Escrowed Shares, the officers and directors of
LTGL, GHG or Trrravel.com, as the case may be, at their expense, shall take such
necessary or desirable action in order to effectuate the transactions
contemplated by this Agreement.

      Section 2.03 Stock Legends. Certificates representing shares of the
Company Common Stock shall bear a legend restricting transfer of the shares of
the Company Common Stock represented by such certificate in substantially the
form set forth below:

      "The shares evidenced by this certificate have not been registered
      under the Securities Act of 1933, as amended (the "Securities Act"),
      and may not be transferred, nor will any assignee or endorsee hereof
      be recognized as an owner hereof by the issuer for any purpose,
      unless a registration statement under the Securities Act with
      respect to such shares shall then be in effect or unless the
      availability of an exemption from registration with respect to any
      proposed transfer or disposition of such shares shall be established
      to the satisfaction of counsel for the issuer."

                                                                               4
<PAGE>

the Company shall, from time to time, make stop transfer notations in its
records to ensure compliance in connection with any proposed transfer of the
shares with the Securities Act, and all applicable state securities laws.

      Section 2.04 Fees and Expenses. the Company shall be responsible for all
fees and expenses incurred in connection with the negotiation, execution,
delivery and performance of this Agreement and the transactions contemplated
hereby, including, without limitation, the professional fees of counsel for the
Shareholders incurred in connection with the Share Exchange.

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

      The following representations and warranties are hereby made (i) by the
Company to the Shareholders with respect only to the Company, (ii) by LTGL and
the LTGL Shareholders to the Company with respect only to LTGL and its Miss
Ellie's and Ilios subsidiaries, (iii) by the GHG Shareholders to the Company and
LTGL with respect only to GHG and (iv) by TFL to the Company and LTGL with
respect only to Trrravel.com.

      Section 3.01 Organization; Authorization. It is a corporation duly
organized, validly existing, and in good standing under the laws of the state or
country of its incorporation and has full power and authority to carry on its
business as it now is being conducted and to own the properties and assets it
now owns. It is duly qualified to do business as a foreign corporation and is in
good standing in every jurisdiction in which the conduct of its business or
ownership of its property requires such qualification; and, subject to the
requisite approval of and authorization by the holders of its capital stock, it
has full power and authority to enter into this Agreement and to carry out the
transactions contemplated herein.

      Section 3.02 No Defaults. It is not a party to or bound by any contract or
agreement, or subject to any charter provision or other legal restriction (other
than restrictions applicable to corporations or businesses generally), which
adversely affects its business, operations, properties, assets, or condition,
financial or otherwise. It is not in default under any material contract, lease,
agreement, or other undertaking to which it is a party or by which it is bound.
Subject to the requisite approval of and authorization by the holders of its
capital stock, neither the execution and delivery of this Agreement, the
consummation of the transactions contemplated hereby, nor compliance with the
terms and conditions hereof will conflict with, result in a breach of the
unwaived terms and conditions of, or constitute a default under its articles of
incorporation or bylaws or any contract, agreement, commitment, or other
undertaking to which it is a party or by which it is bound.

      Section 3.03 Governmental Consents. Except for the requirements of the
United States Securities Act of 1933, as amended (the "Securities Act") and any
applicable state securities laws, and any applicable laws of the United Kingdom
or the United States no

                                                                               5
<PAGE>

consent or approval of, or filing or registration with, any governmental or
regulatory authority is required in connection with the performance of the terms
of this Agreement.

      Section 3.04 Examination of Documents. All original documents and other
information relating to its affairs will be made available, and copies of any
such documents will be furnished, upon request to the other party and its
counsel. Included among the documents to be made available are all articles of
incorporation and amendments, bylaws and amendments, minutes of all
incorporators, directors and shareholders meetings or consent minutes with
respect to actions taken by incorporators, directors, or shareholders, all
financial statements, tax returns, and all material contracts, leases, and
agreements to which it is a party or an intended beneficiary.

      Section 3.05 Title to Assets. It has good and marketable title to all of
its properties and assets, both real and personal, free and clear of all
security interest liens, claims, equities of others, and restrictions on the
right to transfer, except as disclosed in writing to the Company.

      Section 3.06 Tax Returns and Payments. All of its tax returns and reports
required by law to be filed have been duly filed, and all taxes, assessments,
fees, and other governmental charges (other than those presently payable without
interest or penalty or those which are being contested in good faith by
appropriate proceedings diligently conducted and which are disclosed in the
Exceptions Schedule) upon it or upon any of its properties, assets, interest, or
income which are due or are to become due have been paid or adequately reserved
against. None of its federal income tax returns is currently under examination
by the Inland Revenue.

      Section 3.07 No Litigation. Except as disclosed in writing to the Company:

            (a) there is no action, proceeding, claim, or investigation pending
      or threatened against it or to which any of its assets or properties are
      subject before any court or any governmental department, commission,
      board, bureau, agency, or instrumentality which involves the possibility
      of any judgment or liability or which might adversely affect its assets,
      business, or goodwill and, after investigations it knows of no basis or
      grounds for any such action, proceeding, claim, or investigation; and

            (b) there is no outstanding order, writ, injunction, or decree of
      any court, government department, commission, board, bureau, government
      agency, or instrumentality, or any arbitration award, against it.

      Section 3.08 No Material Adverse Changes. Between the date of this
Agreement and the Effective Date, as a condition precedent to the obligations
hereunder, it will not, without the Company's prior written consent, it will not
engage in any material transaction not in the ordinary course of its business,
make or declare any dividends or distributions of its capital, surplus, or
profits, or redeem or issue any shares of its common stock or other securities.
There will be no changes in its assets, properties, liabilities, or financial
condition from those shown in its financial statements or in its

                                                                               6
<PAGE>

condition, other than changes which do not materially affect, singly or in the
aggregate, its business, assets, properties, or financial condition. Other than
as disclosed to the Company, it will not borrow any amounts or incur any
liabilities other than pursuant to contracts entered into in the ordinary course
of business; discharge any lien or encumbrance or satisfy any liabilities other
than current liabilities incurred in the ordinary course of business; mortgage,
pledge, or subject to lien or charge or any other encumbrance any of its assets
or properties; sell, assign, or transfer any of its assets except in the
ordinary course of business; waive any rights of substantial value; or loan
money to any of its directors, officers, or shareholders.

      Section 3.09 Books and Records Complete. Its books and records are
accurate and complete and there are no matters for which proper entry has not
been made in such books and records.

      Section 3.10 Insurance. It is adequately insured with respect to risks
usually insured against by companies owning properties and conducting business
similar to those owned and conducted by it. All policies are presently in force
and paid in full and will continue to be so without interruption until the
Effective Date.

      Section 3.11 No Brokerage Fees. Except as disclosed in the Registration
Statement, no agent, broker, investment banker, person, or firm acting on its
behalf, to the best of its knowledge, is or will be entitled to any broker's or
finder's fee or any other commission or fee, directly or indirectly, in
connection with any of the transactions contemplated hereby, except for the
Brokers.

      Section 3.11 Compliance with Certain Laws. It is in full compliance with
all laws material and applicable to its business, including, without limitation,
laws (i) regulating atmospheric, water, and other pollution or damage to the
environment, (ii) regulating the ownership and operation of hotels, travel
agencies, tour operators and requirements of the CAA in respect of airline seat
bookings, and (iii) prohibiting discrimination based on race, creed, color, sex,
age, disability, or national origin.

      Section 3.12 Authorization. Its shareholders and Board of Directors have
duly authorized the execution and delivery of this Agreement and all documents
and transactions called for hereunder, and, this Agreement constitutes a valid
and binding obligation of the corporation in accordance with the Agreement's
terms. Each shall deliver to the other a certified copy of resolutions of its
Board of Directors pertaining to the foregoing. It has taken or will exert its
best efforts to take, prior to the Effective Date, all action required by law,
its Articles of Association, Memorandum of Association, Certificate of
Incorporation and Bylaws, as applicable, and otherwise to authorize the
execution, delivery, and performance of this Agreement.

      Section 3.13 Contracts. Other than as set forth or described in the
Registration Statement, it is not a party to any material agreement,
understanding or other contractual obligation ("Contract") binding upon it, the
non-performance of which by either a party

                                                                               7
<PAGE>

to this Agreement or the other party to such Contract, would have a material
adverse effect on the business, financial condition or prospects of such party
hereto.

      Section 3.14 Property and Equipment. The property and equipment as shown
on its most recent balance sheet are in good operating condition and state of
repair, reasonable wear and tear excepted. The use of its real property conforms
in all material respects with applicable ordinances, regulations, zoning, or
building codes, and other applicable laws.

      Section 3.15 Share Ownership. The Shareholders who have executed this
Agreement are the record and beneficial owners of 100% of the share capital of
each of the Acquired Corporations and there are no options, warrants, rights or
other agreements or understandings, written or oral, to sell, issue or purchase
any additional share capital of any of the Acquired Corporations. There are not
issued or outstanding any options, warrants, or rights to subscribe for,
purchase, or receive ordinary shares or preference shares or any other
securities convertible into ordinary shares of preference shares of any of the
Acquired Corporations.

      Section 3.16 Representations True. No representation or warranty contained
herein, nor any statement or certificate furnished hereunder or in connection
herewith, contains or will contain any untrue statement of a material fact or
omits or will omit to state a material fact necessary to make the statements
contained herein or therein not misleading.

                                   ARTICLE IV
                    INVESTMENT REPRESENTATIONS AND WARRANTIES

      Each Stockholder hereby acknowledges, represents and warrants to, and
agrees with, the Company as follows:

      Section 4.01 The Stockholder is acquiring the shares of Company Common
Stock for his or its own account as principal, not as a nominee or agent, for
investment purposes only, and not with a view to, or for, resale, distribution
thereof in whole or in part. Further, the Stockholder does not have any
contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with
respect to any of the shares of Company Common Stock.

      Section 4.02 The Stockholder acknowledges his or its understanding that
the issuance of the shares of Company Common Stock is intended to be exempt from
registration under the Securities Act of 1933, as amended (the "Securities Act")
by virtue of Section 4(2) of the Securities Act and the provisions of Regulation
D promulgated thereunder ("Regulation D"). In furtherance thereof, the
Stockholder represents and warrants to, and agrees with, the Company that he or
it: (i) is an "accredited investor" as that term is defined in Section 2(15) of
the Securities Act, and Rule 501(a) of Regulation D promulgated thereunder; (ii)
has the financial ability to bear the economic risk of an investment in the
Company and has no need for liquidity with respect to his or its

                                                                               8
<PAGE>

investment in the Company; and (iii) has such knowledge and experience in
companies similar to the Company in terms of the Company's stage of development
so as to be capable of evaluating the merits and risks of an investment in the
Company.

      Section 4.03 The Stockholder has been given the opportunity for a
reasonable time prior to the date hereof to ask questions of, and receive
answers from, the Company or its representatives concerning the business of the
Company the powers and rights of the Company Common Stock, and has been given
the opportunity for a reasonable time prior to the date hereof to obtain such
additional information necessary to verify the accuracy of the information which
was provided to the extent the Company possesses such information or can acquire
it without unreasonable effort or expense.

      Section 4.04 The Stockholder represents, warrants and agrees that he or it
will not sell or otherwise transfer the shares of Company Common Stock without
registration under the Securities Act or an exemption therefrom and fully
understands and agrees that he or it must bear the economic risk of an
investment in the shares of Company Common Stock because, among other reasons,
such shares have not been registered under the Securities Act or under the
securities laws of any state and, therefore, cannot be resold, pledged, assigned
or otherwise disposed of unless they are registered under the Securities Act and
under the applicable securities laws of such states prior to such resale,
pledge, assignment or other disposition, or an exemption from such registration
is available. In particular, the Stockholder is aware that such shares, when
issued, will be "restricted securities," as such term is defined in Rule 144
promulgated under the Securities Act ("Rule 144"), and they may not be sold
pursuant to Rule 144 unless all of the conditions of Rule 144 are met. The
Stockholder understands that Rule 144 is not currently available in connection
with a sale of such shares. The Stockholder also understands that the Company is
under no obligation to register such shares on his or its behalf or to assist
him or it in complying with any exemption from registration under the Securities
Act or applicable state securities laws. The Stockholder further understands
that sales or transfers of such shares are further restricted by applicable
state securities laws and the provisions of this Agreement.

      Section 4.05 The Stockholder is not acquiring the shares of Company Common
Stock as a result of or subsequent to any advertisement, article, notice or
other communication published in any newspaper, magazine, or similar media or
broadcast over television or radio, any seminar or meeting, or any solicitation
of a subscription by a person or entity not previously known to the Stockholder
in connection with investments in securities generally.

      Section 4.06 The foregoing representations, warranties and agreements
shall survive the date hereof.

                                                                               9
<PAGE>

                                    ARTICLE V
                                    COVENANTS

      Section 5.01 Preservation of Business; Access to Documents. From and after
the date of this Agreement and until the Effective Date, the parties hereto
hereby covenant and agree with each other that the Company and each of the
Acquired Corporations shall:

            (a) use its best efforts to preserve its business organization,
      goodwill, and business relationships intact and to retain the services of
      its officers and key employees;

            (b) provided the same does not violate any statute, order, decree,
      rule, regulation, or contract, give each other and its authorized agents
      full access, during normal business hours, upon reasonable notice, to all
      of its assets, properties, books, records, agreements, and commitments and
      furnish such representatives during such period with all such information
      concerning its affairs as the other may reasonably request; provided.
      however that each party and its authorized agents shall hold in confidence
      all documents and information thus acquired or learned concerning the
      parties and, if the transactions contemplated by this Agreement are not
      consummated, all such documents shall immediately thereafter be returned
      to the appropriate parties;

            (c) take all necessary corporate and any other action, and use its
      best efforts to obtain all consents, approvals, and agreements required to
      carry out the transactions contemplated in this Agreement and to satisfy,
      or cause to be satisfied, the conditions specified herein; and

            (d) maintain in full force and effect insurance policies providing
      coverages and amount of coverage as now provided.

      Section 5.02 Business in Ordinary Course. Except as specifically
authorized by this Agreement, until the Effective Date, none of the Acquired
Corporations shall do any of the following except with the prior written consent
of the Company:

            (a) effect any general salary increase except in line with its past
      practices;

            (b) enter into any written employment agreement;

            (c) increase the base compensation or other benefits of any employee
      by more than 10%;

            (d) make any contribution to any trust or plan for the benefit of
      employees not required by the present terns thereof or in accordance with
      its past practices;

            (e) make any change in any employee benefit plan which would
      materially increase the cost thereof or adopt any new employee benefit
      plan;

            (f) issue or commit to issue any capital stock or other ownership
      interests.

                                                                              10
<PAGE>

            (g) grant or omit to grant any options, warrants, or other rights to
      subscribe for or purchase or otherwise acquire any shares of capital stock
      or other ownership interests or issue or commit to issue any securities
      convertible into or exchangeable for shares of its common stock or other
      ownership interests;

            (h) declare, set aside, or pay any dividend or distribution with
      respect to its common stock or other ownership interests;

            (i) directly or indirectly redeem, purchase, or otherwise acquire or
      commit to acquire any of its common stock or other ownership interest or
      directly or indirectly terminate or reduce or commit to terminate or
      reduce any bank line of credit or the availability of any funds under any
      loan or financing agreement;

            (j) effect a split or reclassification of any capital stock or
      recapitalization;

            (k) change its articles of incorporation, bylaws, or other governing
      instruments, except to effectuate the transactions contemplated by this
      Agreement;

            (1) borrow or agree to borrow any funds except pursuant to existing
      bank lines of credit or other existing loan agreements or financing
      arrangements; or

            (m) waive or commit to waive any right of substantial value.

                                   ARTICLE VI
                   CONDITIONS PRECEDENT TO THE SHARE EXCHANGE

      The obligations of the parties under this Agreement are subject to the
satisfaction of the following express conditions precedent at or before the
Effective Date:

      Section 6.01 Compliance with Laws. All statutory requirements for the
valid consummation by it of the transactions contemplated by this Agreement
shall have been fulfilled.

      Section 6.02 Documents. All corporate and other proceedings in connection
with the transactions contemplated herein and all documents incident thereto
shall be reasonably satisfactory in form and substance to it and its counsel.

      Section 6.03 Payment of Rank Indebtedness. Subject only to consummation of
the Company IPO within five business days following the Effective Date and
receipt of the net proceeds thereof, the Company will apply sufficient net
proceeds from such Company IPO which, when coupled with other available funds,
will be sufficient to (a) retire and pay in full all Rank Indebtedness, and (b)
cause the release of all personal guarantees of Kevin R. Leech or his affiliates
and all collateral securing a bank letter of credit issued by Citibank, N.A. in
favor of the holder of such Rank Indebtedness.

      Section 6.04 Capitalization of Certain Loans. On the Effective Date, Red
Kite or another applicable corporate affiliate of Kevin R. Leech, shall
capitalize as share equity in

                                                                              11
<PAGE>

the Company an aggregate of (pound)1,030,000 of loans made to LTGL or its
subsidiaries; provided that except for the shares of Company Common Stock issued
pursuant to this Agreement, no other form of consideration shall be issued or
paid for the capitalization of the aforesaid loans.

      Section 6.05 Opinions of Counsel. Unless waived in writing by the parties
prior to the Effective Date, the Company and each Acquired Corporation shall
have caused its counsel to prepare and deliver to the other an opinion, dated as
of the Effective Date, in form and substance satisfactory to the other, to the
effect that:

            (a) It has been duly incorporated and is a validly existing
      corporation in good standing under the laws of its state or country of
      incorporation, with full corporate power and authority to own and operate
      its properties and to carry on its business as presently being conducted.

            (b) It is duly qualified and licensed to transact business in each
      state or other jurisdiction in which it transacts business and by each
      governmental authority by which it is required to be licensed, except for
      jurisdictions in which failure to qualify would not materially and
      adversely affect its business, operations, or financial condition.

            (c) It has an authorized capital as set forth in Article IV
      hereinabove and the outstanding shares of its common stock stated as
      issued and outstanding have been duly and validly issued and are fully
      paid and nonassessable and contain no preemptive rights. To the best
      knowledge of such counsel, there are no outstanding options, warrants, or
      other rights to subscribe for, purchase, or receive shares of its common
      stock or securities convertible into its common stock, other than as set
      forth in Article IV hereinabove.

            (d) Neither the execution and delivery of this Agreement nor
      compliance with the terms of this Agreement will conflict with or result
      in a material breach of any of the terms, conditions, or provisions of, or
      constitute a material default under its Articles of Association,
      Memorandum of Association, Certificate of Incorporation or bylaws or any
      material note, indenture, mortgage, deed of trust, or other material
      agreement or instrument known to such counsel to which it is a party or by
      which it or any of its property is bound, or any existing law, order,
      rule, regulation, writ, injunction, or decree known to such counsel of any
      government, governmental instrumentality, agency, body, arbitration
      tribunal, or court, domestic or foreign, having jurisdiction over it or
      its properties.

            (e) This Agreement has been duly authorized and executed by it, and
      all corporate action by it required to authorize the Share Exchange has
      been taken.

            (f) Such counsel knows of no material litigation, proceeding, or
      governmental investigation pending or threatened against or relating to it
      or its properties or business.

      In rendering such opinion, counsel may rely on certificates of its
officers as to matters of fact and, as to matters of law, may rely on opinions
of local counsel chosen by

                                                                              12
<PAGE>

it provided that copies of such opinions of such other counsel accompany the
opinion delivered by counsel.

      Section 6.06 Certificate of President and Secretary. The Company and each
Acquired Corporation shall have furnished to the other a certificate of the
President or Vice President and the Secretary of the respective company, dated
as of the Effective Date, to the effect that the representations and warranties
of the respective company in this Agreement are true and correct at and as of
the Effective Date, that no error, misstatement, or omission has been discovered
or is known with respect to such representations and warranties, and that the
respective company has complied with all the agreements and has satisfied all
the covenants on its part to be performed at or prior to the Effective Date.

      Section 6.07 No Material Adverse Change. Between the date of execution of
this Agreement and the Effective Date, neither the Company nor any of the
Acquired Corporations: (a) except in the ordinary course of its business, shall
have incurred any liabilities or obligations (direct or contingent) or disposed
of any of its assets, or entered into any material transaction or suffered or
experienced any materially adverse change in its condition, financial or
otherwise, and (b) shall have increased its issued and outstanding ordinary
shares, preference shares, common stock or any other securities, or rights,
options, warrants or other instruments convertible into or exercisable for
ordinary shares, preference shares, common stock.

                                   ARTICLE VII
               TERMINATION, FURTHER ASSURANCES, AND MISCELLANEOUS

      Section 7.01 Termination and Postponement. This Agreement and the Share
Exchange contemplated hereby may be terminated, and the transactions provided
for herein abandoned, as follows:

            (a) at any time prior to but not after the Effective Date by mutual
      consent of the Company and Cignet, or

            (b) at the sole option of Cignet, at any time following five (5)
      business days after the Effective Date if the Company IPO shall not have
      been consummated and the Rank Indebtedness paid in full within five (5)
      business days following such Effective Date

      In the event of the termination and abandonment of this Agreement and the
Share Exchange contemplated hereby, this Agreement shall become void and of no
effect, without any liability on the part of any party or its directors,
officers, or shareholders.

      Section 7.02 Survival. All agreements, representations, and warranties
made hereunder or in connection with the transactions contemplated hereby shall
survive the Effective Date and remain effective in accordance with the terms
hereof.

                                                                              13
<PAGE>

      Section 7.03 Liability. In the event that this Agreement shall be
terminated pursuant to Section 7.01 hereinabove, all further obligations of the
Company and the Shareholders under this Agreement shall terminate without
further liability to the other.

      Section 7.04 Assignment. This Agreement may not be assigned nor any of the
performances hereunder delegated by operation of law or otherwise by any party
hereto, and any purported assignment or delegation shall be void.

      Section 7.05 Headings. The article and section headings of this Agreement
are inserted for convenience of reference only and do not constitute a part of
this Agreement.

      Section 7.06 Binding Effect. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs,
successors, legal representatives, assigns, and transferors.

      Section 7.07 Entire Agreement. This Agreement constitutes the entire
agreement of the parties hereto with respect to the subject matter hereof. There
are no representations, warranties, conditions, or other obligations except as
herein specifically provided. Any waiver, amendment, or modification hereof must
be in writing. A waiver in one instance shall not be deemed to be a continuing
waiver or waiver in any other instance.

      Section 7.08 Counterparts. This Agreement may be executed in counterparts
and each counterpart hereof shall be deemed to be an original, but all such
counterparts together shall constitute but one agreement an original, but all
such counterparts together shall constitute but one agreement.

                                                                              14
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

                                                      LEISURE TRAVEL GROUP, INC.
                                                          a Delaware corporation

                               By: /s/ Raymond J. Peel
                                   ---------------------------------------------

                                                    LEISURE TRAVEL GROUP LIMITED
         a private limited company organized under the laws of England and Wales

                               By: /s/ Raymond J. Peel
                                   ---------------------------------------------

                                                         CIGNET VENTURES LIMITED
a private limited company organized under the laws of Guernsey (Channel Islands)

                               By: /s/ Kevin R. Leech
                                   ---------------------------------------------

                                                       RED KITE VENTURES LIMITED
a private limited company organized under the laws of Guernsey (Channel Islands)

                               By: /s/ Kevin R. Leech
                                   ---------------------------------------------

                                                                    INTERNET PLC
a private limited company organized under the laws of the British Virgin Islands

                               By: /s/ Lee Cole
                                   ---------------------------------------------

                                                      TECHNOLOGY FINANCE LIMITED
a private limited company organized under the laws of the British Virgin Islands

                               By: /s/ Kevin R. Leech
                                   ---------------------------------------------

                                                                              15
<PAGE>

                                   /s/ Raymond J. Peel
                                   ---------------------------------------------
                                                                 RAYMOND J. PEEL

                                                     MILNER LABORATORIES LIMITED

                               By: /s/ Kevin R. Leech
                                   ---------------------------------------------

                                   /s/ Philip Mason
                                   ---------------------------------------------
                                                                    PHILIP MASON

                                   /s/ Stephen Last
                                   ---------------------------------------------
                                                                    STEPHEN LAST

                                   /s/ Rod Rodgers
                                   ---------------------------------------------
                                                                     ROD RODGERS

                                   /s/ David Marriott
                                   ---------------------------------------------
                                                                  DAVID MARRIOTT

                                                                              16
<PAGE>

                                   SCHEDULE 1

Cignet Ventures Limited                                        3,145,000 Shares

Philip Mason                                                     370,000 Shares

Stephen Last                                                      74,000 Shares

Rod Rodgers                                                       74,000 Shares

David Marriott                                                    37,000 Shares

                                                                              17
<PAGE>

                                   SCHEDULE 2

Raymond J. Peel                                                  263,333 Shares

Internet plc                                                     263,333 Shares

Red Kite Ventures Limited                                        413,334 Shares

                                                                              18
<PAGE>

                                ESCROW AGREEMENT

      THIS AGREEMENT is made and entered into as of the date set forth below, by
and among LEISURE TRAVEL GROUP, INC., a Delaware corporation (the "Company"),
LEISURE TRAVEL GROUP LIMITED, a private limited company organized under the laws
of England and Wales ("LTGL"), CIGNET VENTURES LIMITED, a private limited
company organized under the laws of Guernsey (Channel Islands) ("Cignet"), RED
KITE VENTURES LIMITED, a private limited company organized under the laws of
Guernsey (Channel Islands) ("Red Kite"), INTERNET PLC, a private limited company
organized under the laws of the British Virgin Islands ("IPC"), TECHNOLOGY
FINANCE LIMITED, a private company organized under the laws of the British
Virgin Islands ("TFL"), RAYMOND J. PEEL ("Peel"), MILNER LABORATORIES LIMITED, a
private limited company ("Milner"), PHILIP MASON ("Mason"), STEPHEN LAST
("Last"), ROD RODGERS ("Rodgers"), and DAVID MARRIOTT ("Marriott") and GREENBERG
TRAURIG, LLP, a law firm with offices located at 200 Park Avenue, New York, New
York 10166 (the "Escrow Agent"). Red Kite, IPC, TFL and Milner are sometimes
hereinafter collectively referred to herein as the "LTGL Shareholders," Cignet,
Mason, Rodgers and Last are sometimes hereinafter collectively referred to
herein as the "GHG Shareholders," and the LTGL Shareholders and the GHG
Shareholders are sometimes hereinafter collectively referred to herein as the
"Shareholders."

                                   WITNESSETH

      WHEREAS, as of March 9, 2000, the Company and the Shareholders entered
into an Agreement and Plan of Share Exchange (the "Agreement") under which (a)
LTGL agreed to purchase (i) from the GHG Shareholders, all of the outstanding
share capital of GHG and (ii) from TFL, 49% of the outstanding share capital of
Trrravel.com and (b) the Company agreed to purchase from the Shareholders all of
the outstanding share capital of LTGL; and

      WHEREAS, each of the Shareholders have agreed to deposit said shares in
escrow in order implement the Agreement, and have executed this Agreement to
evidence the terms of said escrow with the Escrow Agent.

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

            1. The parties hereby designate, constitute and appoint Escrow Agent
      as the "Escrow Agent" under this Agreement.

            2. The Escrow Agent hereby acknowledges receipt of certificates
      evidencing ordinary shares of each of LTGL, MISS ELLIE'S WORLD TRAVEL
      LIMITED, a private limited company organized under the laws of England and
      Wales ("Miss Ellie's) and ILIOS TRAVEL LIMITED, a private limited company
      organized under the laws of England and

                                                                              19
<PAGE>

      Wales ("Ilios"), GHG and Trrravel.com in the amounts set forth on SCHEDULE
      A annexed hereto and made a part hereof (collectively, the "Escrowed
      Shares"), together with stock powers duly executed in blank by the
      Shareholders of record of such Escrowed Shares

            3. The Escrowed Shares are to be held by Escrow Agent in escrow and
      disposed of pursuant to and strictly in accordance with the terms and
      conditions of this Agreement. Escrow Agent shall hold the Escrowed Shares
      in a safe place, provided that Escrow Agent shall not be obligated to
      obtain insurance covering the loss and/or destruction of the Escrowed
      Shares unless the Parties so request and advance the Escrow Agent
      sufficient funds to pay for said insurance. The Escrow Agent undertakes to
      perform only such duties as are expressly set forth in this Agreement, and
      no implied duties or obligations of the Escrow Agent shall be read into
      this Agreement.

            4. The Escrow Agent shall at all times be authorized to deliver the
      Escrowed Shares in accordance with the terms of the Agreement or with
      written instructions executed by Kevin R. Leech or Cignet, as
      representative of all of the Shareholders (the "Representative"), all the
      Parties. In the event the Escrow Agent shall receive a written claim of
      default under the Agreement by any of the Parties, then the Escrow Agent
      shall not release the Escrowed Shares from escrow unless and until the
      Escrow Agent shall have received written instructions from the
      Representative as the proper deliver of the Escrowed Shares or Escrow
      Agent has received direction from a court of competent jurisdiction (after
      expiration of any applicable appeal period) as to the proper party
      entitled to receipt of the Escrowed Shares. Escrow Agent shall be
      authorized to file an action in interpleader to determine the proper party
      entitled to the Escrowed Shares; and the defaulting party, as determined
      in such proceeding, shall indemnify and hold harmless the Escrow Agent
      from all costs and expenses, including reasonable attorney's fees
      associated with the proceeding. Escrow Agent may act in reliance upon any
      writing or instrument or signature which it in good faith believes to be
      genuine and may assume that any person purporting to give any writing,
      notice, advice, or instruction in connection with the provisions hereof
      has been duly authorized to do so. Escrow Agent shall not be liable in any
      manner for the sufficiency or correctness as to form, manner of execution
      or validity of any instrument deposited in this escrow nor as to the
      identity, authority or right of any persons executing the same; and its
      duties hereunder shall be limited to the safekeeping of the Escrowed
      Shares and for the disposition of same in accordance with this Agreement.
      Escrow Agent hereby executes this Agreement for the sole and exclusive
      purpose of evidencing its Agreement of the provisions hereof.

            5. The Parties hereby agree to indemnify and hold the Escrow Agent
      harmless from any and all claims, liabilities, losses, actions, suits or
      proceedings at law or in equity, or any other expense, fees, or charges of
      any character or nature, which it may incur or with which it may be
      threatened by reason of its acting as Escrow Agent under this Agreement;
      and in connection therewith, to indemnify the Escrow Agent against any and
      all expenses, including reasonable attorney's fees and the cost of
      defending any action, suit or proceeding or resisting any claim.

                                                                              20
<PAGE>

            6. The Escrow Agent may consult with counsel of its own choice and
      shall have full and complete authorization and protection for any action
      taken or suffered by it and hereunder in good faith and in accordance with
      the opinion of such counsel. The Escrow Agent shall otherwise not be
      liable for any mistakes of fact or error in judgment, or for any acts or
      omissions of any kind unless caused by its willful misconduct or gross
      negligence.

            7. All reasonable out-of-pocket expenses of Escrow Agent in
      connection with the services rendered under this Agreement shall be paid
      by the Company.

            8. Upon release and/or delivery of all Escrowed Shares in accordance
      with the terms of the Agreement and this Agreement, this Agreement shall
      terminate and the parties shall be released hereunder except with respect
      to the indemnification obligations in favor of the Escrow Agent.

            9. The provisions of this Agreement may not be amended,
      supplemented, waived or changed orally, but only by a writing signed by
      the party as to whom enforcement of any such amendment, modification,
      supplement or waiver is sought and making specific reference to this
      Agreement.

            10. Escrow Agent shall have no duties or responsibilities other than
      those expressly set forth herein. Escrow Agent shall not be liable for any
      action taken or omitted by it, or any action suffered by it, except for
      gross negligence or willful misconduct. The Escrow Agent shall not be
      bound by any notice or demand unless evidenced by a writing delivered to
      Escrow Agent signed by the proper party or parties.

            11. This Agreement contains the entire understanding between and
      among the parties hereto with respect to the subject matter hereof, and
      shall be binding upon and inure to the benefit of such parties, and their
      respective heirs, successors in interest and legal representatives.

            12. This Agreement is governed by, and is to be construed in
      accordance with, the laws of the State of New York, United States of
      America.

      This Agreement may be executed in counterpart.

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
day and year first above written.

                                                      LEISURE TRAVEL GROUP, INC.
                                                          a Delaware corporation

                                     By: /s/ Raymond J. Peel
                                         ---------------------------------------

                                                                              21
<PAGE>

                                                    LEISURE TRAVEL GROUP LIMITED
         a private limited company organized under the laws of England and Wales

                                     By: /s/ Raymond J. Peel
                                         ---------------------------------------

                                                         CIGNET VENTURES LIMITED
a private limited company organized under the laws of Guernsey (Channel Islands)

                                     By: /s/ Kevin R. Leech
                                         ---------------------------------------

                                                       RED KITE VENTURES LIMITED
a private limited company organized under the laws of Guernsey (Channel Islands)

                                     By: /s/ Kevin R. Leech
                                         ---------------------------------------

                                                                   INTERNET PLC
a private limited company organized under the laws of the British Virgin Islands

                                     By: /s/ Lee Cole
                                         ---------------------------------------

                                                      TECHNOLOGY FINANCE LIMITED
a private limited company organized under the laws of the British Virgin Islands

                                     By: /s/ Kevin R. Leech
                                         ---------------------------------------

                                             /s/ Raymond J. Peel
                                             -----------------------------------
                                                                 RAYMOND J. PEEL

                                                     MILNER LABORATORIES LIMITED

                                     By: /s/ Kevin R. Leech
                                         ---------------------------------------

                                                                              22
<PAGE>

                                             /s/ Philip Mason
                                             -----------------------------------
                                                                    PHILIP MASON

                                             /s/ Stephen Last
                                             -----------------------------------
                                                                    STEPHEN LAST

                                             /s/ Rod Rodgers
                                             -----------------------------------
                                                                     ROD RODGERS

                                             /s/ David Marriott
                                             -----------------------------------
                                                                  DAVID MARRIOTT

                                                                   ESCROW AGENT:

                                                          GREENBERG TRAURIG, LLP

                                     BY: /s/ Stephen A. Weiss
                                         ---------------------------------------
                                                   STEPHEN A. WEISS, SHAREHOLDER

                                                                              23

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