Document:

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                                                                    EXHIBIT 10.1

                           MEMORANDUM OF UNDERSTANDING

         WHEREAS Prison Realty Trust, Inc. ("PZN") is a Maryland Corporation
with its principal place of business in Nashville, Tennessee.

         WHEREAS William Wanstrath has instituted derivative litigation in the
state courts of Tennessee, Wanstrath v. Crants et al., Civ. Action No.
99-1719-III, naming as defendants PZN, Doctor R. Crants, D. Robert Crants III,
John Eakin, Jr., Ted Feldman, Jackson W. Moore, Jean-Pierre Cuny, Rusty M.
Moore, Richard W. Cardin, J. Michael Quinlan, Joseph V. Russell, Michael W.
Devlin, C. Ray Bell, Charles W. Thomas, Monroe J. Carell, Ned McWherter,
(collectively the "PZN Defendants") and Correctional Management Services
Corporation (referred to as the "Wanstrath Action");

         WHEREAS Dasburg, S. A. has instituted purported class action litigation
in the state courts of Tennessee, Dasburg, S.A. v. Corrections Corporation of
America et al., Civ. Action No. 98-2391-III, naming as defendants Corrections
Corporation of America, Doctor R. Crants, Thomas W. Beasley, Charles L.
Blanchette and David L. Myers (referred to as the "Dasburg Action");

         WHEREAS certain shareholders of PZN, including but not limited to Hilda
Bernstein, have instituted purported class action litigation in the state courts
of Tennessee, Bernstein v. Prison Realty Trust, Inc. et al., Civ. Action No.
99-3794-II, naming as defendants the PZN Defendants (except for Monroe J.
Carell) as well as Blackstone Group Inc, Fortress Investment Group LLC, and Bank
of America Corporation (referred to as the "Bernstein Action");

         WHEREAS Robert Buchanan and Cindy Unger have instituted litigation in
the state courts of Tennessee, Buchanan and Unger v. Prison Realty Trust, Inc.,
Civ. Action No. 00-683-II, naming as defendants PZN, Doctor R. Crants, Robert
Crants III, and Darrell K. Massengale (referred to as the "Buchanan and Unger
Action");

         WHEREAS certain shareholders of PZN, including but not limited to
Alfred C. Ivers, Michael Ashner, Douglas K. Byrne, Gunter Sachs, L. Roland and
Marian N. Yates, GIM AVB, Jerome Trupp, Gary Nightengale, Harold Eugene Hames
and Miriam Smith have instituted purported class action litigations in the
federal courts of Tennessee, In re Prison Realty Securities Litigation, Civ.
Action No. 3:99-0452, naming as defendants the PZN Defendants (except Ned
McWherter) as well as Thomas W. Beasley, Samuel W. Bartholomew, Joseph F.
Johnson, R. Clayton McWhorter and Sodexho Alliance S. A. (which has been
dismissed from action) (referred to as the "In re PZN Action");

         WHEREAS certain shareholders of PZN, including but not limited to,
Robert Buchanan and Cindy Unger, have instituted purported class action
litigations in the federal courts of Tennessee, In re Old CCA Securities
Litigation, Civ. Action No. 3:99-0458, naming as defendants the PZN Defendants
(except Jean-Pierre Cuny and Ned McWherter) as well as Vida Carroll (referred to
as the "In re Old CCA Action");

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         WHEREAS certain shareholders of PZN, including but not limited to John
Neiger, Gregory C. Carr, Robert Sarver, Barbara Carlson, Steve Carlson, Richard
Fleenor and Morris R. Beschloss, have instituted purported class action
litigation in the federal courts of Tennessee, Neiger v. Crants et al., Civ.
Action No. 3:99-1205, naming as defendants Doctor Crants, Robert Crants and PZN
(referred to as the "Neiger Action");

         WHEREAS John L. Mikovits instituted litigation in the federal court of
Tennessee, Mikovits v. Crants et al., Civ. Action No. 3:00-0264, naming as
defendants the PZN Defendants (except Ned McWherter) as well as Thomas W.
Beasley, Samuel W. Bartholomew, Joseph F. Johnson, R. Clayton McWhorter and
Sodexho Alliance S. A. (referred to as the "Mikovits Action");

         WHEREAS the Defendants in all of these actions (collectively referred
to as the "Actions") deny any wrongdoing whatsoever and wish to settle these
claims solely to eliminate the burden and expense of future litigation;

         NOW, THEREFORE, the parties to the Actions and their counsel agree as
follows:

1.       For settlement purposes only, Defendants shall not contest the
         propriety of the In re PZN and In re Old CCA Actions being prosecuted
         as class actions.

2.       In settlement and final dismissal of all claims asserted against the
         Defendants in the Actions, it is agreed that:

         INSURANCE PROCEEDS

         a.       The following amounts from the following insurance policies
                  are a necessary condition to settlement:

                  i.       Remaining limits from the .primary CCA policy
                           (approximately $13.25 million remaining) written by
                           National Union

                  ii.      $5 million from the CCA excess policy written by
                           Chubb

                  iii.     $10 million from the CCA excess policy written by
                           Royal

                  iv.      $15 million from the PZN policy written by National
                           Union

                  v.       $5.6 million from the reinstated PZN and OpCo
                           policies written by National Union

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         PZN EQUITY COMPONENT

         b.       PZN will contribute 16,550,000 shares of PZN common stock with
                  a Stock Price Guarantee of $4.375 per share.

                  i.       The "Stock Price Guarantee Period" shall mean:

                           1)       With respect to distribution of Settlement
                                    Stock to plaintiff's counsel, the period
                                    from the date of the initial distribution of
                                    Settlement Stock to plaintiffs' counsel as
                                    an award of attorneys' fees and expenses
                                    until August 31, 2001.

                           2)       With respect to the distribution of
                                    Settlement Stock to Class Members, the
                                    period from the date of the initial
                                    distribution of Settlement Stock to Class
                                    Members in accordance with the claims
                                    administration process until August 31,
                                    2001.

                  ii.      Stock Price Guarantee Terms. For purposes of any
                           initial distribution referred to above:

                           1)       If, for any ten (10) trading days (including
                                    five (5) consecutive trading days) out of
                                    any twenty (20) consecutive trading days
                                    subsequent to an initial distribution of
                                    Settlement Stock during the applicable Stock
                                    Price Guarantee Period, the closing prize of
                                    PZN common stock (as reflected on the NYSE
                                    or, if PZN common stock ceases to be traded
                                    on the NYSE, on such other market as PZN
                                    common stock is traded at that time)
                                    averages at least $4.375 per share, PZN's
                                    Stock Price Guarantee will have been
                                    automatically satisfied for that
                                    distribution.

                           2)       If the conditions in (1) are not satisfied
                                    with respect to an initial distribution of
                                    Settlement Stock during the applicable Stock
                                    Price Guarantee Period, then PZN shall pay
                                    to the recipients of that distribution
                                    (i.e., Class Members or plaintiffs' counsel
                                    as appropriate), within 30 days following
                                    the close of the applicable Stock Price
                                    Guarantee Period, the difference between
                                    $4.375 per share and the larger of (a) the
                                    average closing price of PZN common stock
                                    for the twenty (20) consecutive trading days
                                    immediately following the distribution date,
                                    or (b) the average closing price for the
                                    final twenty (20) trading days of the
                                    applicable Stock Price Guarantee Period (the
                                    "Stock Price Guarantee Differential").

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                  iii.     PZN, in its sole discretion, may elect to pay the
                           applicable Stock Price Guarantee Differential to the
                           recipients of that distribution in cash, common
                           stock, or a combination of cash and common stock.

                  iv.      Stock splits, Stock Dividends and Reverse Stock
                           Splits. The share price and the total number of
                           shares to be contributed to the Settlement Fund will
                           be adjusted to reflect any changes due to stock
                           splits, including those effectuated as stock
                           dividends and reverse stock splits.

                  v.       Costs. All costs, including those of PZN's transfer
                           agent, incurred in issuing and distributing any
                           Settlement Stock to the recipients shall be borne by
                           PZN.

                  vi.      Rights With Respect to the Settlement Stock. In order
                           that the Settlement Fund may be distributed to and be
                           fully and freely traded by the recipients without any
                           restrictions, ten (10) days before the hearing date
                           for final approval of the settlement, PZN shall
                           provide Plaintiffs' Co-Lead counsel with the written
                           opinion of outside counsel substantially to the
                           effect: (a) that the Settlement Stock will be issued
                           in compliance with the registration requirements
                           of ss.5 of the Securities Act of 1933 (the "Act") or
                           will be issued in reliance upon an exemption
                           therefrom; (b) that the Settlement Stock is fully
                           tradeable without any restriction after distribution
                           (except that affiliates of PZN may be required to
                           sell in accordance with Rule 144 promulgated under
                           the Act); and (c) that such shares are otherwise
                           fully paid, non-assessable and free from all liens
                           and encumbrances.

         ANTI-DILUTION PROVISIONS

         c.       The settlement shall provide that, with respect to any capital
                  infusion or other liquidity event which occurs at any time
                  following the fulfillment of Defendants' obligations under the
                  provisions of the price guarantee, but prior to December 31,
                  2001, the settlement classes shall receive Assessment shares
                  as detailed below:

                  i.       From the earlier of (i) August 31, 2001 or (ii) the
                           date on which the Stock Price Guarantee is satisfied
                           pursuant to P. 2(b)(ii)(1) above until December 31,
                           2001, the Company may sell equity securities,
                           securities that are convertible at any time into one
                           or more equity security or securities, and securities
                           that provide for the purchase at any time of one or
                           more equity or securities (collectively "Equity
                           Securities") with a total purchase price of all such
                           securities of up to $110 million without dilution
                           compensation to the Settlement Classes if, and only
                           if, one or more of the following conditions is
                           satisfied: (i) the sale of such security is made as a
                           rights offering to all holders of the Company's
                           common shares; (ii) the sale of such security is made
                           at a per-common-share-equivalent price equal to or
                           greater than the Guaranteed Price Per Share; or (iii)
                           the Company receives

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                           at the time of the sale of such security the signed
                           opinion or report of a nationally-recognized
                           investment banking firm that is independent of the
                           Company and independent of all proposed purchasers of
                           each such security that the price at which such
                           security is being sold is fair to the Company and
                           represents an arms-length negotiation.

                  ii.      From the earlier of (i) August 31, 2001 or (ii) the
                           date on which the Stock Price Guarantee is satisfied
                           pursuant to P. 2(b)(ii)(1) above until December 31,
                           2001, any Equity Securities sold in excess of a total
                           purchase price of all such securities of $110 million
                           and any Equity Securities that are sold without
                           meeting one or more of the above conditions shall be
                           designated as an "Assessment Security."

                  iii.     With respect to the sale of any Assessment Security
                           up to $90 million, the Settlement Classes shall
                           receive as dilution compensation without making
                           payment an amount of the Assessment Security being
                           sold with an equivalent purchase price equal to the
                           number of Company common shares provided for pursuant
                           to P. 2(b) above divided by the total of (I) the
                           fully-diluted number of Company common shares as of
                           August 1, 2000 plus (ii) the number of Company common
                           shares provided for pursuant to P. 2(b) above. The
                           resulting fraction shall then be multiplied by the
                           total purchase price of the Assessment Security being
                           sold, which product shall then be multiplied by the
                           difference between the Guaranteed Price Per Share and
                           the per-common-share-equivalent price of the
                           Assessment Security being sold, which product will be
                           divided by the Guaranteed Price Per Share.

                  iv.      With respect to the sale of any Assessment Security
                           above $90 million, the Settlement Classes shall
                           receive as dilution compensation without making
                           payment an amount of the Assessment Security being
                           sold with an equivalent purchase price equal to the
                           number of Company common shares provided for pursuant
                           to P. 2(b) above divided by the total of (i) the
                           fully-diluted number of Company common shares as of
                           August 1, 2000 plus (ii) the number of Company common
                           shares provided for pursuant to P. 2(b) above. The
                           resulting fraction shall then be multiplied by the
                           total purchase price of the Assessment Security being
                           sold (in excess of $90 million), which product shall
                           then be multiplied by the difference between the
                           Guaranteed Price Per Share and the
                           per-common-share-equivalent price of the Assessment
                           Security being sold, which product will be divided by
                           the per-common-share-equivalent price of the
                           Assessment Security.

         PAYMENTS TO CERTAIN THIRD PARTIES AND INSIDERS

         d.       PZN will reduce by $7.5 million the proposed termination
                  fee/expense payments to Blackstone, Fortress, BancAmerica
                  Group and/or their affiliates or successors

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                  (collectively "Blackstone"). To the extent any payment is made
                  to Blackstone beyond $15.7 million, PZN will pay a penalty to
                  the Settlement Classes equal to 50% of any such amount paid to
                  Blackstone beyond the $15.7 million.

         e.       Payments to Sodexho Alliance S.A. and/or its affiliates or
                  successors (collectively "Sodexho") for its interests in OpCo
                  shall be limited to the $3.38 million in PZN common stock to
                  be paid to Sodexho in connection with the proposed merger
                  between PZN and OpCo. To the extent that PZN makes any payment
                  to Sodexho in excess of $4.5 million, PZN will pay a penalty
                  to the Settlement Classes equal to 50% of any amount paid to
                  Sodexho beyond the $4.5 million;

         f.       All payments to Sodexho, Baron and holders of JJFMSI, PMSI and
                  OpCo equity will be paid in PZN common stock rather than cash.
                  All payments to Blackstone will be made in PZN common stock or
                  through a transfer of assets, rather than cash. The parties
                  agree to develop in good faith some mechanism where the value
                  of any assets transferred to Blackstone shall be agreed to by
                  the financial advisors of the parties. If any cash
                  consideration, other than the severance arrangements described
                  in PZN's Proxy, is paid to any PZN insider and/or affiliate in
                  connection with and/or as part of the proposed transactions or
                  other liquidity event, an amount equal to 50% of such payments
                  shall be immediately paid to the settlement classes.

         g.       Except for certain severance arrangements described in PZN's
                  Proxy, no payments of any kind shall be made to any PZN/OpCo
                  insider or affiliate as part of any merger or liquidity event
                  other than for their ratable interest in OpCo, JJFMSI or PMSI
                  as described above.

         CORPORATE GOVERNANCE ISSUES

         h.       There shall be a 24-month prohibition on repricing of PZN
                  stock options to any former or current (as of the date of the
                  final approval of the Settlement) (i) officer holding the
                  title of V.P. or higher or (ii) director, without shareholder
                  approval.

         i.       Each committee of the PZN Board shall have as a majority,
                  board members who were not directors or officers of PZN or its
                  affiliates as of December 1, 1999.

         j.       PZN agrees to eliminate the "Other Constituencies" portion of
                  Article VIII of the Prison Realty Trust, Inc. Articles of
                  Amendment and Restatement which provides:

                  In considering the effect of a potential acquisition of
                  control of the Corporation, the Board of Directors of the
                  Corporation may, but shall not be required to, consider the
                  effect of the potential acquisition of control on: (i)
                  stockholders, employees, suppliers, customers and creditors of
                  the Corporation; and (ii) communities in

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                  which offices or other establishments of the Corporation are
                  located.

         ADMINISTRATIVE PROVISIONS

         k.       The settlement shall include an attorneys' fee quick pay
                  provision that provides for immediate payment of attorneys'
                  fees upon the issuance of an order approving the settlement
                  and the posting of security satisfactory to the insurance
                  carriers. The settlement shall also provide that Counsel can
                  receive their proportionate share of PZN securities
                  immediately upon final approval of the settlement.

         l.       Defendants agree that the termination of the Blackstone
                  transaction was in material part due to the prosecution of the
                  transactional cases (i.e., the Bernstein Action and the
                  Wanstrath Action).

         m.       Notice costs are to be advanced from the settlement fund,
                  without recourse.

         n.       The insurance proceeds noted above shall be deposited into an
                  interest bearing escrow account no later than October 6, 2000,
                  10:00 a.m. (Eastern Standard Time).

3.       The parties shall draft and execute an appropriate Stipulations of
         Settlement (the "Stipulations") and such other documentation as may be
         required to obtain final court approval of the settlement and the final
         dismissal of the Actions with prejudice and without costs to any party.
         The parties will jointly present the Stipulations to the appropriate
         courts as soon as practicable and shall use their best efforts to
         obtain final judicial approval of the settlements and the final
         dismissal with prejudice and the release of all claims which were or
         could have been asserted in the Actions, including such claims that
         could have arisen during time periods not covered by the complaints in
         the Actions. The Stipulations will expressly provide that the
         Defendants have denied and continue to deny, that they have committed
         any violations of law, or any breaches of their fiduciary obligations.

4.       The Stipulations shall provide for releases of all counsel and shall
         confirm that they have complied with Rule 11 of the Federal Rules of
         Civil Procedure in the conduct of the Actions.

5.       If the settlement is not approved, the existence of the Memorandum of
         Understanding or the Stipulation shall not be deemed to prejudice in
         any way the positions of the parties with respect to the Actions. As
         stated above, the parties intend to enter into a formal settlement
         agreement embodying the terms hereof and shall act in good faith
         promptly to execute such document. It is expressly understood that this
         Memorandum of Understanding is non-binding and is subject to the
         execution of such a final Stipulation. The parties shall cooperate in
         good faith and use their best efforts to implement the

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         settlement and promptly to seek final approval of the settlement
         pursuant to the appropriate rules of procedure, including the execution
         of such further documents as are reasonably necessary to implement the
         provisions hereof.

6.       Upon execution of this Memorandum of Understanding, the parties agree
         to a standstill of all litigation for thirty (30) days while the
         Stipulation and accompanying documents are drafted and shall cooperate
         in good faith to obtain whatever orders or extensions are required to
         effectuate such standstill from the appropriate courts. If after the
         expiration of thirty (30) days, the Stipulation has not been executed,
         any party may, by ten (10) days written notice, withdraw from this
         Memorandum of Understanding. In such event, the existence of the
         Memorandum of Understanding shall not be deemed to prejudice in any way
         the positions of the parties with respect to the Actions.

7.       This Memorandum of Understanding may be executed in counterpart by any
         of the signatories hereto, and as so executed shall constitute one
         agreement.

FOR DEFENDANTS:

Dated: August 23, 2000              SIMPSON THACHER & BARTLETT

                                    By: /s/ Bruce D. Angiolillo
                                        ----------------------------------------
                                            Bruce D. Angiolillo

                                    425 Lexington Avenue
                                    New York, New York 10017

                                    Attorneys for All Defendants Except
                                    Jean-Pierre Cuny, Blackstone Group Inc.,
                                    Fortress Investment Group LLC, and Bank of
                                    America Corporation

Dated: August 23, 2000              ROPES & GRAY

                                    By: /s/ John Montgomery
                                        ----------------------------------------
                                            John Montgomery

                                    One International Place
                                    Boston, MA 02110

                                    Attorneys for Defendant Jean-Pierre Cuny

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FOR PLAINTIFFS:

Dated: August 23, 2000              MILBERG WEISS BERSHAD HYNES & LERACH, LLP

                                    By: /s/ Darren Robbins
                                        ----------------------------------------
                                           Darren Robbins

                                    600 West Broadway, Suite 1800
                                    San Diego, CA 92101

                                    Attorneys for Plaintiffs in the In re PZN
                                    Action

Dated: August 23, 2000              GIRARD & GREEN, LLP

                                    By: /s/ Robert A. Jigarjian
                                        ----------------------------------------
                                            Robert A. Jigarjian

                                    160 Sansome Street, Suite 300
                                    San Francisco, CA 94104

                                    Attorneys for Plaintiffs in the In re PZN
                                    Action

Dated: August 23, 2000              BERMAN, DEVALERIO & PEASE

                                    By: /s/ Glen DeValerio
                                        ----------------------------------------
                                            Glen DeValerio

                                    One Liberty Square
                                    Boston, MA 02109

                                    Attorneys for Plaintiffs in the In re Old
                                    CCA Action and the Buchanan and Unger Action

Dated: August 23, 2000              SCHIFFRIN & BARROWAY, LLP

                                    By: /s/ Richard Schiffrin
                                        ----------------------------------------
                                            Richard Schiffrin

                                    Three Bala Plaza East, Suite 400
                                    Bala Cynwyd, PA 19004

                                    Attorneys for Plaintiffs in the Wanstrath
                                    Action

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Dated: August 23, 2000              LAW OFFICES OF STEVEN E. CAULEY, P.A.

                                    By: /s/ Steven E. Cauley
                                        ----------------------------------------
                                            Steven E. Cauley

                                    Suite 218, Cypress Plaza
                                    2200 Rodney Parham Rd.
                                    Little Rock, Arkansas 722212

                                    Attorneys for Plaintiffs in the Neiger
                                    Action and the Dasburg Action

Dated: August 23, 2000              SHEPHERD & GELLER

                                    By: /s/ Paul J. Geller
                                        ----------------------------------------
                                            Paul J. Geller

                                    7200 W. Camino
                                    Boca Raton, Florida 33433

                                    Attorneys for Plaintiffs in the Bernstein
                                    Action

Dated: August 23, 2000              STANLEY, MANDEL & IOLA, L.L.P.

                                    By: /s/ Marc R. Stanley
                                        ----------------------------------------
                                            Marc R. Stanley

                                    3100 Monticello Avenue, Suite 750
                                    Dallas, Texas 75205

                                    Attorneys for Plaintiffs in the Mikovits
                                    Action

                                       10SETTLEMENT AGREEMENT AND CONDITIONAL RELEASE

     THIS SETTLEMENT AGREEMENT AND CONDITIONAL RELEASE ("Agreement") is made and
entered  into as of  April  20,  2000,  by and  among  ConSyGen,  Inc.,  a Texas
corporation ("CSGI") on behalf of itself and its officers, directors, employees,
attorneys  and agents,  Thomas  Dreaper,  an individual  ("Dreaper"),  Sovereign
Partners  Limited  Partnership,  a Delaware limited  partnership  ("Sovereign"),
Dominion  Capital  Fund  Limited,  a  Bahamian  company  ("Dominion"),  Canadian
Advantage  Limited  Partnership,   an  Ontario  limited  partnership  ("Canadian
Advantage"),  Stephen M. Hicks, an individual ("Hicks"), Thomson Kernaghan & Co.
Limited,  an Ontario corporation  ("Thomson") and Mark Valentine,  an individual
("Valentine") on behalf of themselves and their officers, directors,  employees,
attorneys,  heirs,  executors  and  agents,  in  accordance  with the  terms and
conditions set forth below.

                                    RECITALS

     WHEREAS,  on May 29,  1998,  Sovereign,  Dominion  and  Canadian  Advantage
(collectively,  the "Debenture  Holders")  purchased $3.5 million in convertible
debentures  (the  "Debentures")  issued  by CSGI  pursuant  to a 6%  Convertible
Debenture  Subscription Agreement (the "Purchase Agreement") and other documents
entered into in connection therewith (collectively,  the "Debenture Documents").
Since  that  time,  Dominion  has  converted  a portion  of its  Debenture  into
unregistered  shares of CSGI  common  stock (the  "Common  Stock"),  leaving the
following principal amounts  outstanding:  $1,000,000 for Sovereign,  $1,450,000
for Dominion, and $250,000 for Canadian Advantage.

     WHEREAS,  CSGI has defaulted on its obligations  contained in the Debenture
Documents,  including,  without  limitation,  its  obligation  set  forth in the
Debentures to deliver  Common Stock upon its receipt of conversion  notices from
the Debenture  Holders and its obligation set forth in the  Registration  Rights
Agreement dated May 29, 1998 (the "Registration Rights Agreement"),  to maintain
the  registration  of Common Stock  issuable to the  Debenture  Holders upon the
conversion  of the  Debentures.  [As of the  date of this  Agreement,  Debenture
Holders  have  claims  against  CSGI  for  liquidated  damages  in  the  sum  of
$______________________  and legal fees and costs (the "Legal  Fees") in the sum
of $________________________ .]

     WHEREAS,  there is now pending in the United States  District Court for the
Southern  District  of New  York  a case  entitled  Sovereign  Partners  Limited
Partnership,  et al. v. Consygen Inc. v. Thomson Kernaghan,  et al., No. 98 Civ.
8457 (RLC) (the "Debenture Litigation"). The Debenture Holders, as plaintiffs in
the  Debenture  Litigation,  accused CSGI of breach of contract and  conversion.
CSGI, as a counterclaimant  in the Debenture  Litigation,  accused the Debenture
Holders, Hicks, Thomson and Valentine (collectively, the "Debenture Parties") of
misrepresenting  their intentions when entering into the Debenture Documents and
of unlawfully short selling CSGI stock and depressing its stock price, allegedly
in violation of the Debenture Documents and state law.

     WHEREAS, CSGI acknowledges that it, through its former management and other
representatives acting either on its behalf or independently,  has made numerous
statements  ("Statements")  alleging  that  the  Debenture  Parties  engaged  in
wrongdoing  (including committing fraud and unlawfully shorting CSGI stock); and
that these  Statements  have been made in various media and in the public forum;
and that these  Statements  have been  republished  and  disseminated by various
parties in numerous media and forums, including,  without limitation, (i) to the
Securities and Exchange  Committee,  both in filings and in communications  with
the  Enforcement  Division;  (ii) in pleadings in the Debenture  Litigation  and
other lawsuits,  (iii) in press releases,  (iv) in shareholder meetings,  (v) in
telephonic and electronic communications with shareholders,  potential investors
and  others,  (vi)  on the  Internet,  (vii)  to the  National  Associations  of
Securities  Dealers  enforcement  division  and  (viii)  to  news  publications,
including the National  Financial Post based in Toronto,  Ontario;  and further,
that based upon CSGI's due diligence and the discovery that has been  conducted,
CSGI has now  determined  that  there  was,  and is,  no basis in fact for these
Statements.
<PAGE>
     WHEREAS,  there is now pending in the United States  District Court for the
Southern  District  of New  York  a case  entitled  Sovereign  Partners  Limited
Partnership, et al. v. Restaurant teams International, Inc., et al., No. 99 Civ.
0564 (RJW)  (the "New York  Defamation  Litigation").  Sovereign,  Dominion  and
Hicks, as plaintiffs, accuse CSGI, various of its officer directors,  employees,
and agents, and other persons,  of defaming  plaintiffs by falsely accusing them
of unlawful  short  selling and market  manipulation.  A similar  lawsuit is now
pending in the Ontario Court, General Division, entitled Thomson Kernaghan & Co.
Limited,  et al. v. ConSyGen,  Inc.,  No. 99 CV 162139 (the "Ontario  Defamation
Litigation") (collectively the "Defamation Litigation").

WHEREAS,  the parties  entered  into the CSGI  Settlement  Term Sheet (the "Term
Sheet"),  dated March 8, 2000,  whereby they entered into a binding agreement to
settle their claims and seek to stay the Debenture Litigation and the Defamation
Litigation against CSGI and certain affiliated parties pending CSGI's compliance
with its obligations under the Term Sheet.

     WHEREAS, as required by Paragraph 10 of the Term Sheet, CSGI issued a press
release  on March 9, 2000 (the  "Press  Release"),  a copy of which is  attached
hereto as Exhibit A, whereby it  acknowledged,  among other things,  that, based
upon CSGI's due diligence and the discovery  that has been  conducted,  CSGI has
now determined  that there was, and is, no basis in fact for the statements made
by CSGI,  through  its former  management  and other  representatives,  alleging
wrongdoing by the Debenture  Parties.  Also as required by the Term Sheet,  CSGI
filed an 8K with the Securities  and Exchange  Commission on March 22, 2000 (the
"8K"),  a copy of which  is  attached  hereto  as  Exhibit  B,  whereby  it also
acknowledged,  among other things, that, based upon CSGI's due diligence and the
discovery that has been  conducted,  CSGI has now determined that there was, and
is,  no basis in fact  for the  statements  made by  CSGI,  through  its  former
management  and other  representatives,  alleging  wrongdoing  by the  Debenture
Parties. In addition, based upon CSGI's due diligence and the discovery that has
been conducted, CSGI has now determined that there was, and is, no basis in fact
for its counterclaims in the Debenture Litigation.

     WHEREAS,  as  contemplated  by the Term Sheet,  the parties  have agreed to
enter into this Agreement  which more fully details the agreements  contained in
the Term Sheet,  including the agreements to settle,  compromise,  release,  and
dismiss,  fully  and  completely  and  forever,  each and every  claim  that the
Debenture  Parties  may have  against  CSGI and that CSGI may have  against  the
Debenture Parties.

NOW,   THEREFORE,   in  consideration  of  the  mutual  covenants,   agreements,
representations  and  warranties  herein  contained,  to avoid further risks and
uncertainty of litigation, and for other good and sufficient consideration,  the
parties agree as follows:

     1. CSGI'S COMPLIANCE WITH DEBENTURES, WARRANTS AND PAYMENT OF PENALTIES.

          (a) As of the date hereof,  CSGI hereby  acknowledges  and agrees that
pursuant to the  Debentures,  it owes (without  defense or offset) the Debenture
Holders  the  following  principal  and  interest:  $____________  ($250,000  of
principal  and  $__________  interest)  to  Canadian  Advantage,   $____________
($1,450,000  of principal  and  $__________  interest)  to Dominion  Capital and
$____________  ($1,000,000 of principal and $__________  interest) to Sovereign.
In addition,  CSGI hereby agrees to pay $350,000 (the "Liquidated Damages") (10%
of the original principal sum of the Debentures) in CSGI common stock to cover a
portion of the  liquidated  damages  relating  to the lapse of the  registration
statement and non-delivery of shares upon submission of conversion notices. CSGI
acknowledges its obligation to honor the Debentures and the Debenture  Documents
and hereby agrees that any further default thereunder shall constitute a default
of this Agreement.  CSGI also  acknowledges  its  obligations,  as stated in the
Debenture   Documents,   with  respect  to  the  Warrants  associated  with  the
Debentures.

          (b) On the  condition  that  CSGI is not in  default  hereunder,  said
Liquidated Damages and interest shall be added, pro rata, to the principal being
converted by the Debenture Holders upon the issuance of a conversion notice. For
example,  if Sovereign delivers a conversion notice whereby it converts $100,000
of principal,  it shall add to such amount accrued  interest thereon and $10,000
in Liquidated Damages,  and CSGI shall deliver additional shares of Common Stock
as  calculated  by  the  conversion  formula  in  connection  therewith.  On the
<PAGE>
condition that CSGI is not in default hereunder,  the Debenture Parties agree to
waive their right to any  liquidated  damages in excess of the  $350,000  and to
Legal Fees and to all other claims not expressly  provided for in Paragraph 1(a)
above and to accept the Common Stock to be issued hereunder upon the issuance of
conversion  notices in full satisfaction  thereof.  Upon execution hereof,  CSGI
shall deliver ______ [80,000 + shares  calculated for interest] shares of Common
Stock to Dominion as payment for  prorated  Liquidated  Damages and  interest in
connection  with  its  conversion  of  $800,000  in  principal  pursuant  to its
conversion  notice  dated  February  25, 2000.  The  foregoing  share amount was
calculated  as  follows:  ($80,000  in  Liquidated  Damages + $_____ in prorated
interest) /$1.18 per share (the then-effective conversion price).

          (c) Notwithstanding  anything to the contrary in this Agreement,  CSGI
shall remain obligated to pay Dominion,  Sovereign and Hicks $25,000 in cash, in
installments of $12,500 on each of May 5 and June 5, 2000,  which represents the
unpaid portion of sanctions (the  "Sanctions")  that CSGI agreed to pay pursuant
to the settlement  agreement and stipulation entered into the record on February
4, 2000 (the "Sanction  Stipulation") in connection with the New York Defamation
Litigation.  Any  default  of  the  Sanction  Stipulation  shall  be  a  default
hereunder.

          (d)  If  CSGI  defaults  hereunder,  upon  written  request  from  the
Debenture Holders, CSGI shall immediately pay to the Debenture Holders, in cash:
(i) $200,000 in Legal Fees  together  with (ii) the  unconverted  portion of the
Liquidated Damages and principal and interest owed pursuant to the Debentures as
set forth in paragraph 1(a).

     2.  REGISTRATION  STATEMENT.  The  Debenture  Holders agree to waive CSGI's
obligation to re-register the Common Stock pursuant to the  Registration  Rights
Agreement,  on the condition that CSGI is not in default  hereunder.  CSGI shall
cooperate with the Debenture Holders so that they can sell the maximum shares of
CSGI stock allowed under this  Agreement and Rule 144. In connection  therewith,
CSGI hereby agrees to provide or cause to be provided opinion letters,  reliance
letters or other  documentation  within three (3) business  days after a request
therefor  by either the  Debenture  Holders or CSGI's  transfer  agent  (whether
before or after May 29, 2000, the date after which the Debenture  Holders are no
longer subject to Rule 144 volume restrictions on the sale of Common Stock).

     3. RETRACTION; PRESS RELEASE AND 8K; FURTHER COVENANTS.

     The "Retraction":

               Based upon CSGI's due diligence  and the discovery  that has been
          conducted, CSGI has now determined that there was, and is, no basis in
          fact for the statements  made by CSGI,  through its former  management
          and  other  representatives,  alleging  wrongdoing  by  the  Debenture
          Parties.  Therefore,  CSGI has concluded  that there was no actionable
          conduct by any of the  Debenture  Parties  with respect to CSGI or its
          shareholders.

     Attached  hereto  as  Exhibit  C is a sworn  statement  by  Lewis  Burridge
acknowledging  that to the  best of his  knowledge  the  foregoing  is true  and
correct.  CSGI further  agrees that  neither it nor its then current  directors,
officers,   employees,   attorneys  or  agents  will  make  any  statement  that
contradicts the text of the above Retraction,  the Press Release and/or the 8-K,
that  repudiates  this  Agreement,  or that  accuses  the  Debenture  Parties of
wrongdoing in connection  with the  Debentures  and/or CSGI. If any other medium
republishes  or  otherwise  disseminates  information  that is  contrary  to the
Retraction,  CSGI  agrees  that  it and the  affected  Debenture  Parties  shall
immediately  issue a joint press  release in the  identical  medium in which any
such  republication  or  dissemination  is made and in the form  provided in the
Press  Release,  to be modified as necessary to correct  whatever  misimpression
would, or reasonably  could, be created about the affected  Debenture Parties by
any such  republication or dissemination.  The parties hereto agree to fully and
promptly cooperate with regard to the foregoing.
<PAGE>
     4. SELLING  RESTRICTIONS.  On the condition  that CSGI is not in default of
this Agreement,  the Debenture Holders will limit their aggregate daily sales of
CSGI common stock to the greater of (i) 25% of the higher of the previous  day's
trading  volume or the  current  day's  trading  volume,  (ii) an  amount  worth
$20,000,  or (iii) 20,000 shares.  The Debenture  Holders agree not to engage in
"short  sales" of CSGI's  common  stock,  as that term is defined in the Federal
securities laws and SEC regulations.

     5.  DEBENTURE  LITIGATION.  Subject to the consent of the Court,  which all
parties to this  Agreement  will  cooperate  to obtain,  the Court shall  retain
jurisdiction of the Debenture  Litigation for the sole purpose of enforcement of
the Settlement Agreement.  A Stipulated Judgment, in the form attached hereto as
Exhibit D (the "Stipulated Judgment"), in favor of the Debenture Parties, in the
amount of  $2,700,000,  plus  interest  and  Liquidated  Damages as set forth in
paragraph 1 above, plus $200,000 towards the Debenture Parties' Legal Fees, will
be signed by the parties and, so long as the  Debenture  Parties are not then in
breach of this  Agreement,  shall be filed with the Court upon a default by CSGI
of this  Agreement.  As CSGI honors future  conversion  notices by the Debenture
Holders, the amount of the Stipulated Judgment shall be reduced by the principal
amount converted,  together with the interest and Liquidated  Damages applicable
to that principal amount.

     A Stipulation and Order of Dismissal With  Prejudice,  in the form attached
hereto as Exhibit E will be signed by the parties and presented to the Court for
its  signature  in advance of the  currently  scheduled  trial date of April 11,
2000.

     6. DEFAMATION LITIGATION

     Three months after the mutual  execution of this  Agreement,  and after the
full  performance  by CSGI of its  obligation to make  payments  pursuant to the
Sanction Stipulation,  the Defamation Litigation shall be dismissed against CSGI
and  Raj  Kapur  with  prejudice,  provided  that  the  dismissed  parties  have
cooperated in providing information as set forth herein for that period of three
months. Three months after the mutual execution of this Agreement, provided that
he has cooperated in providing  information as set forth herein,  the Defamation
Litigation shall be dismissed with prejudice against Thomas Dreaper. Neither the
Defamation Litigation nor any other litigation shall be dismissed as against any
member of the Weiss family  (except  Jeffrey  Weiss but only if he cooperates in
the same manner as CSGI is  required  to  cooperate  by the  provisions  of this
Paragraph  6, and then only to the extent that  claims  against him arise out of
his conduct  during his  tenure,  in his  capacity,  and within the scope of his
duties as a CSGI director), Harry M. Weiss & Associates. P.C., any person acting
in concert with the Weiss family who was not an officer or director of CSGI, any
Internet posters (unless  specifically  identified by CSGI in Exhibit F hereto),
or any other  person.  Notwithstanding  anything  to the  contrary  herein,  the
Debenture  Parties shall remain free to pursue all available legal remedies,  in
any  available  forum,  against any member of the Weiss family  (except  Jeffrey
Weiss to the extent  described  above),  Harry M. Weiss & Associates.  P.C., any
person  acting  in  concert  with the Weiss  family  who was not an  officer  or
director of CSGI, any Internet posters (unless  specifically  identified by CSGI
in Exhibit F hereto), or any other person not the beneficiary of the release set
forth in Paragraph 8 below.

     CSGI on its own behalf and on behalf of its officers, directors,  employees
and agents will, in good faith,  take the actions  specified in this paragraph 6
in order to  provide  and make  available  to the  Debenture  Parties  facts and
information  pertaining  to the  following  subject  matter areas (the  "Subject
Matter"):  the  claims  made  against  the  Debenture  Parties  by  CSGI  in its
counterclaim  or otherwise  (including  the identity of parties who provided the
basis for such claims) and the Weiss family's  conduct  alleged in the Complaint
filed in the United States District Court for the District of Arizona, a copy of
which is  attached  hereto as  Exhibit F,  including,  without  limitation,  all
information  and  communications  received  from the Weiss  family  and/or third
parties regarding the allegations made by CSGI, the Weiss family or others (i.e.
Restaurant Teams International and LifeOne, Inc.) against the Debenture Parties,
but excluding facts and information in the possession of the following "excluded
attorneys":  C. Steven Rorke, Donald R. Day, Cummings,  McClorey,  Davis, Acho &
Day and Camhy,  Karlinsky & Stein, and also excluding,  only with respect to any
document or other  information not in existence prior to January 1, 2000, Brown,
Rudnick,  Freed & Gesmer.  For example,  CSGI will provide the Debenture Parties
<PAGE>
with all documents and information CSGI or its attorneys received from Mark Krum
and other attorneys  (except the excluded  attorneys) and all information it has
regarding  the  identity  of "Tech."  Specifically,  in  compliance  with and in
furtherance of the foregoing, CSGI will:

     (a) Within 15 business days of the execution of this Agreement,  provide to
the Debenture Parties all documents within the possession, custody or control of
CSGI and not previously provided that CSGI, acting in good faith, may reasonably
be expected to identify as  containing  facts or  information  pertaining to the
Subject Matter;

     (b) Within 15 business  days of  execution  of this  Agreement,  review its
document production in response to Debenture Parties' existing document requests
in the New York  Defamation  Litigation and supplement that production if and to
the extent that any responsive documents have been overlooked or not produced to
date;

     (c) Within 5  business  days of  receipt  of a  specific  request  from the
Debenture  Parties  received  within 2 years of the date of this  Agreement  for
documents pertaining to the Subject Matter and not previously provided,  provide
said documents within the possession, custody or control of CSGI;

     (d) Within 5  business  days of  receipt  of a request  from the  Debenture
Parties  received within 2 years of the date of this Agreement to make available
any CSGI officer,  director,  employee or agent (except excluded  attorneys) for
questioning,  on the  telephone  or in person at the place of  business  of such
person,  make such person  available  to respond to  questions  and provide such
facts and  information  as they may have  pertaining to the Subject Matter for a
reasonable period of time; and

     (e) Within five (5) business days of the execution of this Agreement:

          (i)  Direct  the  law  firms  of  Ross,   Dixon  &  Bell  ("RDB")  and
Christensen,  Miller ("CM") to comply with the subpoenas served upon them in the
Litigations and to withdraw their claims of  attorney-client  privilege and work
product immunity asserted in response to the subpoenas;

          (ii) Direct the firms of RDB, Speno & Cohen, Frank Hariton, CM and any
other  lawyers  or  firms  it  may  have   retained  or  consulted   with  about
representation  in connection with the litigations  (except for C. Steven Rorke,
Donald R. Day,  Cummings,  McClorey,  Davis,  Acho & Day and Camhy,  Karlinsky &
Stein,  and  also  excluding,  only  with  respect  to  any  document  or  other
information not in existence prior to January 1, 2000, Brown,  Rudnick,  Freed &
Gesmer) to turn over to CSGI all  information  and documents  contained in their
respective files concerning the allegations made against the Debenture Parties;

          (iii)  Make  all  such  information  and  documents  available  to the
Debenture Parties promptly upon receipt thereof,  except to the extent that such
materials are (A)  privileged  and (B) likely to prejudice the interests of CSGI
and/or the Debenture Parties,  in which case CSGI and the Debenture Parties will
consult  in  good  faith  and  make a joint  determination  as to  whether  such
materials should be delivered to the Debenture Parties.  If the parties,  having
so  consulted  in good  faith,  cannot  agree  regarding  the  delivery  of such
documents, CSGI agrees to deliver such documents upon written demand therefor by
the Debenture Parties.

     (f) The stay of the  Defamation  Litigation  against  Thomas S. Dreaper and
other former officers and directors of CSGI shall only remain in effect, and the
dismissal with prejudice shall only take effect, with respect to each of them to
the extent that they each  respectively  similarly  cooperate with the Debenture
Parties.  No failure by Dreaper or other defendant to cooperate  hereunder shall
be deemed a default or cross-default hereunder by CSGI.

     (g) In  consideration  for the promises set forth  herein,  Thomas  Dreaper
agrees to sign a statement in the form attached  hereto as Exhibit G and further
agrees not to say anything or make any statement  that  contradicts  the text of
the retraction set forth in paragraph 3 hereof or in the Press Release,  the 8-K
and/or  Dreaper's  signed  statement  that are  attached  as Exhibits A, B and G
hereto.  Any breach of this  paragraph  will  constitute a default by Dreaper of
this Agreement.  The parties  acknowledge  that by signing this Agreement,  CSGI
<PAGE>
shall not deemed to be agreeing with,  disagreeing with or otherwise  commenting
upon the language  set forth in  Dreaper's  statement in Exhibit G to the effect
that Dreaper acted in his capacity as President and Chief  Executive  Officer of
CSGI in  making  the  statements  and  authorizing  CSGI to make the  statements
described in Exhibit G.

     7. DEFAULT.  On the condition that the Debenture  Parties are not in breach
of this  Agreement,  the Debenture  Holders may file and enforce the  Stipulated
Judgment, upon the occurrence of any of the following events of default by CSGI:

          (a) Failure to comply with the obligations set forth in this Agreement
and the Debenture Documents;

          (b)  Delisting of CSGI's stock from the OTC Bulletin  Board within one
(1) year of the date hereof;

          (c) Failure by CSGI to comply with its  reporting  requirements  under
the Federal  securities  laws and SEC regulations at any time during the one (1)
year period after the date hereof;

          (d) Any statement by or on behalf of CSGI, its then current directors,
officers,  employees,  attorneys  or  agents  that  contradicts  the text of the
Retraction  set forth in Paragraph 3 hereof,  the Press  Release  and/or the 8K,
that  repudiates  this  Agreement,  or that  accuses  the  Debenture  Parties of
wrongdoing in connection with the Debentures and/or CSGI.

     8. MUTUAL RELEASE.

          (a) Except for the  performance  by the parties of the  provisions  of
this  Agreement,  the Sanction  Stipulation  and the  Debenture  Documents,  and
conditioned,  with  respect to CSGI and  Dreaper  respectively,  upon CSGI's and
Dreaper's  respective  cooperation  pursuant to  Paragraph  6 above,  each party
hereto,  for  itself  and  on  behalf  of  all  partners,  officers,  directors,
employees,  affiliates  (both persons and  entities),  representatives,  agents,
attorneys,   servants,  trustees,   beneficiaries,   predecessors  in  interest,
successors  in  interest,  assigns,  nominees and  insurers  (collectively,  the
"Releasing  Parties"),  shall be deemed to have released and forever  discharged
each of the  other  parties  hereto,  and  all  partners,  officers,  directors,
employees,  affiliates  (both persons and  entities),  representatives,  agents,
attorneys,   servants,  trustees,   beneficiaries,   predecessors  in  interest,
successors in interest,  assigns,  nominees and insurers of each such party,  of
and from any and all  claims,  demands,  actions  and causes of action,  whether
known or unknown,  fixed or  contingent,  that any of the Releasing  Parties may
have had,  may now have or may  hereafter  acquire  with  respect to any matters
whatsoever arising under or in any way related to (i) the claims, counterclaims,
third-party  claims,  and causes of action asserted in the Debenture  Litigation
and the  Defamation  Litigation,  (ii) any act which may constitute a defense to
the  performance  of this Agreement and the Debenture  Documents,  and (iii) any
claims any party may have  against  any other with  respect to or in  connection
with any alleged violation of any state or Federal securities laws, prior to the
date of this  Agreement,  including the  Securities Act and the Exchange Act (as
defined in the Debenture  Documents).  Notwithstanding  anything to the contrary
contained herein, the foregoing shall not release CSGI from any claims, demands,
expenses  or losses by the  Debenture  Holders  (or causes of action or remedies
related  thereto)  arising from any  indemnity by CSGI or any  affiliate for the
benefit  of the  Debenture  Parties  as  required  by the  Debenture  Documents,
including any claims concerning the Warrants held by the Debenture Parties.

          (b) Except as set forth in Paragraphs 1(d) and 5 above in the event of
default by CSGI hereunder, each party shall bear its own costs and fees incurred
in connection with the Litigation.

          (c) Each of the parties hereto represents, warrants and covenants that
he/ it has not, and at the time this release  becomes  effective  will not have,
sold, assigned,  transferred or otherwise conveyed to any other person or entity
all or any portion of its rights, claims,  demands,  actions or causes of action
herein released.
<PAGE>
          (d) Each party  represents  and warrants  that he/it has relied wholly
upon its own judgment, belief and knowledge of the existence,  nature, extent or
duration of any claim,  demand,  debt, damage,  liability,  account,  reckoning,
obligation,  cost, expense,  cause of action, chosen action, right of indemnity,
agreement or promise  that he/it may have against the released  parties and that
he/it has made full  investigations  with respect to potential rights and claims
released and that such  releasing  party has not been  influenced  to any extent
whatsoever  in  making  the  releases  contemplated  by  this  agreement  by any
representation  or  statement  regarding  any such  matter.  Each party  further
represents  and warrants that he/it is executing and  delivering  this Agreement
and the releases contemplated  hereunder after having received full legal advise
as to his/its  rights  hereunder and the legal effect thereof from legal counsel
of his/its  own  choosing.  Notwithstanding  the above,  this  Agreement  is not
intended to and does not, release or extinguish the rights of any of the parties
to enforce this Agreement.

          (e)  Notwithstanding  anything to the contrary in the  foregoing,  the
Debenture  Parties'  release shall exclude Mark Weiss,  Harry Weiss,  Jeff Weiss
(except for claims against him which arise out of his conduct during his tenure,
in his capacity, and within the scope of his duties as a CSGI director, provided
that the release  shall only apply to said  conduct as a director and only if he
cooperates  pursuant to Paragraph 6 hereof),  Harry M. Weiss & Associates  P.C.,
any other member of the Weiss family,  and any person acting in concert with the
Weiss family who was not an officer or director of CSGI.

     9. GENERAL PROVISIONS.

          (a) ENTIRE  AGREEMENT.  This  Agreement and the documents  referred to
herein constitute the entire understanding,  arrangement and agreement among the
parties  hereto or any of them with respect to the subject  matter  hereof,  and
supersedes all prior agreements, arrangements, understandings,  negotiations and
discussions, written or oral, between or among the parties hereto.

          (b) SUCCESSORS AND ASSIGNS.  This Agreement  shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and assigns.

          (c)  MODIFICATIONS IN WRITING.  No provisions of this Agreement may be
amended,  supplemented  or waived  except  by a  writing  signed by the party or
parties to be bound thereby.

          (d) EXECUTION IN  COUNTERPARTS.  This Agreement may be executed in two
or more  counterparts,  all of which taken  together shall be considered one and
the same agreement and each of which shall be deemed an original.

          (e)  SEVERABILITY.  In case any provision of this  Agreement  shall be
held   illegal,   invalid  or   unenforceable,   the   legality,   validity  and
enforceability  of the  remaining  provisions  hereof  shall  not in any  way be
affected or impaired thereby.

          (f)  CONSTRUCTION.  The  parties  acknowledge  that each party and its
counsel  have  reviewed  and  revised  this   Agreement  and  that  no  rule  of
construction to the effect that any  ambiguities are to be resolved  against the
drafting party shall be employed in the  interpretation of this Agreement or any
amendments  or exhibits to it or any document  executed and  delivered by either
party in connection with this Agreement.  All captions in this Agreement are for
reference only and shall not be used in the  interpretation of this Agreement or
any related  document.  All  Exhibits  attached  hereto are hereby  incorporated
herein by reference.

          (g) ATTORNEYS'  FEES AND COSTS.  In the event any dispute  between the
parties to this Agreement should result in litigation or other  proceeding,  the
prevailing  party  shall  be  reimbursed  by the  non-prevailing  party  for all
reasonable  attorneys'  fees and  costs,  incurred  by the  prevailing  party in
connection with such litigation or other proceeding and any appeal thereof. Such
costs,  expenses  and fees shall be included in and made a part of the  judgment
recovered by the prevailing party, if any.
<PAGE>
          (h) CONFLICTING  TERMS. To the extent any of the terms herein conflict
with the terms of the Debenture Documents, the terms herein shall prevail.

          (i) INFORMED CONSENT. The parties admit,  acknowledge and declare that
each has given  mature and careful  thought and  consideration  to the making of
this Agreement and to all of the  obligations  hereby  undertaken and the rights
hereby extinguished or created; that this Agreement is entered into voluntarily,
after advice of counsel,  free of undue influence,  coercion,  duress, menace or
fraud of any kind;  that this  Agreement and each and every  paragraph and every
part hereof has been carefully  read and  explained;  and, that each party fully
and completely  understands  and is cognizant of all of the terms and conditions
in this Agreement.

          (j) GOVERNING LAW. This Agreement shall be governed by and interpreted
in accordance  with the laws of the State of New York for contracts to be wholly
performed  in such state and without  giving  effect to the  principles  thereof
regarding the conflict of laws. Any litigation based thereon, or arising out of,
under, or in connection with, this agreement or any course of conduct, course of
dealing,  statements  (whether oral or written) or actions of the parties hereto
shall be brought  and  maintained  exclusively  in the state or  Federal  courts
within  the State of New York,  sitting  in New York City.  The  parties  hereby
expressly and  irrevocably  submit to the  jurisdiction of the state and Federal
Courts  within the State of New York for the purpose of any such  litigation  as
set  forth  above  and  irrevocably  agrees  to be bound by any  final  judgment
rendered  thereby  in  connection  with such  litigation.  The  parties  further
irrevocably  consent  to the  service of process  by  registered  mail,  postage
prepaid,  or by personal  service  within or without the State of New York.  The
parties hereby expressly and irrevocably  waive, to the fullest extent permitted
by law, any objection  which they may have or hereafter may have to venue of any
such  litigation  brought in any such court referred to above and any claim that
any such  litigation has been brought in any  inconvenient  forum. To the extent
that the parties have or hereafter may acquire any immunity from jurisdiction of
any  court or from  any  legal  process  (whether  through  service  or  notice,
attachment prior to judgment,  attachment in aid of execution or otherwise) with
respect to themselves or their property,  the parties hereby  irrevocably  waive
such immunity in respect of its obligations under this Agreement and the related
agreements entered into in connection herewith.

          (k) FURTHER  ASSURANCES.  The parties  hereto  hereby agree to execute
such further  documents,  and take such  further  actions as may  reasonably  be
necessary  to carry out the  intent and  provisions  of this  Agreement,  or any
agreement or document relating hereto or entered into in connection herewith.

     IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of
the date first written above.

     PLEASE READ CAREFULLY.  THIS SETTLEMENT  AGREEMENT AND CONDITIONAL  RELEASE
INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS

CONSYGEN, INC.

By:
    -------------------------------
    A. Lewis Burridge
Its: Chairman

SOVEREIGN PARTNERS LIMITED PARTNERSHIP

By:
    -------------------------------
    Stephen M. Hicks
Its: ____________________________

DOMINION CAPITAL FUND LIMITED

By:
    -------------------------------
    David K. Sims
Its: Director
<PAGE>
SIGNATURE PAGE (CONT'D)

     IN WITNESS  WHEREOF,  the parties hereto have executed this Agreement as of
the date first written above.

     PLEASE READ CAREFULLY.  THIS SETTLEMENT  AGREEMENT AND CONDITIONAL  RELEASE
INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS

CANADIAN ADVANTAGE LIMITED PARTNERSHIP

By:
    -------------------------------
    Mark Valentine
Its: General Partner

STEPHEN M. HICKS

By: -------------------------------
    Stephen M. Hicks

THOMSON KERNAGHAN & CO.

By:
    -------------------------------
    Mark Valentine
Its: Chairman

MARK VALENTINE

By:
    -------------------------------
    Mark Valentine

THOMAS DREAPER

By:
    -------------------------------
    Thomas Dreaper

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00014-of-00352.parquet"}]]