Document:

EXHIBIT  10.8.  COMMITMENT  WARRANT  TO  PURCHASE  OUR  COMMON  STOCK  ISSUED IN
CONNECTION WITH INVESTMENT AGREEMENT BETWEEN US AND SWARTZ

THIS WARRANT AND THE  SECURITIES  ISSUABLE  UPON  EXERCISE  HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES  ACT"),
OR ANY  STATE  SECURITIES  LAW,  AND  MAY  NOT BE  SOLD,  TRANSFERRED,  PLEDGED,
HYPOTHECATED  OR OTHERWISE  DISPOSED OF OR EXERCISED  UNLESS (i) A  REGISTRATION
STATEMENT  UNDER THE SECURITIES ACT AND APPLICABLE  STATE  SECURITIES LAWS SHALL
HAVE  BECOME   EFFECTIVE  WITH  REGARD  THERETO,   OR  (ii)  AN  EXEMPTION  FROM
REGISTRATION  UNDER THE SECURITIES ACT AND APPLICABLE  STATE  SECURITIES LAWS IS
AVAILABLE IN CONNECTION WITH SUCH OFFER, SALE OR TRANSFER.

AN INVESTMENT IN THESE SECURITIES  INVOLVES A HIGH DEGREE OF RISK.  HOLDERS MUST
RELY ON THEIR  OWN  ANALYSIS  OF THE  INVESTMENT  AND  ASSESSMENT  OF THE  RISKS
INVOLVED.

Warrant to Purchase
2,400,000 shares                                              Warrant No.: W-5

                        Warrant to Purchase Common Stock
                                       of
                                COSMOZ.COM, INC.

         THIS CERTIFIES that Swartz Private Equity, LLC or any subsequent holder
hereof pursuant to Section 8 hereof  ("Holder"),  has the right to purchase from
COSMOZ.COM,  INC., a Delaware corporation (the "Company"), up to 2,400,000 fully
paid and nonassessable shares of the Company's common stock, $.001 par value per
share ("Common  Stock"),  subject to adjustment as provided  herein,  at a price
equal to the Exercise Price as defined in Section 3 below, at any time beginning
on the Date of Issuance  (defined  below) and ending at 5:00 p.m., New York, New
York  time the date  that is five (5)  years  after  the Date of  Issuance  (the
"Exercise Period").

         Holder  agrees with the Company  that this  Warrant to Purchase  Common
Stock of the Company(this "Warrant") is issued and all rights hereunder shall be
held subject to all of the  conditions,  limitations  and  provisions  set forth
herein.

         1.       Date of Issuance and Term.

         This  Warrant  shall be deemed  to be  issued on May 5, 2000  ("Date of
Issuance").  The  term of this  Warrant  is five  (5)  years  from  the  Date of
Issuance.

         Of  this  Warrant  to  purchase  two  million  four  hundred   thousand
(2,400,000) shares of Common Stock of the Company, the Warrant is exercisable as
to one million two hundred  thousand  (1,200,000)  shares of Common Stock of the
Company after the ten (10) business day document review period,  as the same may
be extended by mutual  consent,  in writing,  of the Company and the Holder (the
"Review  Period")  referenced in the Equity Line Letter of Agreement dated on or
about April 27, 2000, between Holder and Company (the "Letter of Agreement") has
ended,  and shall be further  exercisable  as to the  remaining  one million two
hundred  thousand  (1,200,000)  shares of Common  Stock of the Company  upon the
earlier of (i) the date of  effectiveness  of Company's  registration  statement
(the "Registration Statement") to be filed pursuant to the Closing Documents (as
defined in the Letter of Agreement), or (ii) October 27, 2000.

                  Anything in this Warrant to the contrary  notwithstanding,  if
the Company delivers  written notice to Swartz Private Equity,  LLC prior to the
expiration of the Review Period that the legal  documents for the underlying $20
million  equity line  transaction  are  unacceptable  and the Company  wishes to
terminate the transaction (a "Company Termination Notice"),  Holder shall return
this Warrant to the Company and all of Holder's  rights under this Warrant shall
be null  and  void and of no  effect,  provided  that,  if the  Company  has not
delivered a Company  Termination Notice to Swartz Private Equity,  LLC, prior to
the expiration of the Review Period, ownership of this Warrant shall irrevocably
vest to the  Holder,  regardless  of  whether  a Company  Termination  Notice is
delivered anytime thereafter.

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<PAGE>

         2.       Exercise.

         (a) Manner of Exercise. During the Exercise Period, this Warrant may be
exercised as to all or any lesser  number of full shares of Common Stock covered
hereby (the "Warrant Shares") upon surrender of this Warrant,  with the Exercise
Form  attached  hereto as Exhibit A (the  "Exercise  Form") duly  completed  and
executed,  together  with the full  Exercise  Price (as defined  below) for each
share of Common  Stock as to which this Warrant is  exercised,  at the office of
the Company, Attention:  Wilfred Shaw, Cosmoz.com, Inc., 1515 S. El Camino Road,
Suite 100, San Mateo,  CA 94402;  Telephone:  (650) 358-1188,  Facsimile:  (650)
358-0188,  or at such other  office or agency as the  Company may  designate  in
writing,  by overnight  mail,  with an advance copy of the Exercise Form sent to
the Company and its Transfer Agent by facsimile  (such  surrender and payment of
the Exercise Price hereinafter called the "Exercise of this Warrant").

         (b) Date of Exercise.  The "Date of  Exercise" of the Warrant  shall be
defined as the date that the advance copy of the completed and executed Exercise
Form is sent by facsimile to the Company, provided that the original Warrant and
Exercise  Form are  received by the Company as soon as  practicable  thereafter.
Alternatively,  the Date of Exercise  shall be defined as the date the  original
Exercise Form is received by the Company,  if Holder has not sent advance notice
by facsimile.

         (c)  Cancellation  of Warrant.  This Warrant shall be canceled upon the
Exercise of this Warrant,  and, as soon as practical after the Date of Exercise,
Holder  shall be  entitled  to  receive  Common  Stock for the  number of shares
purchased  upon  such  Exercise  of this  Warrant,  and if this  Warrant  is not
exercised in full, Holder shall be entitled to receive a new Warrant (containing
terms identical to this Warrant)  representing  any unexercised  portion of this
Warrant in addition to such Common Stock.

         (d) Holder of Record.  Each person in whose name any Warrant for shares
of Common Stock is issued shall, for all purposes, be deemed to be the Holder of
record of such shares on the Date of Exercise of this Warrant,  irrespective  of
the date of delivery of the Common  Stock  purchased  upon the  Exercise of this
Warrant.  Nothing in this Warrant shall be construed as  conferring  upon Holder
any rights as a stockholder of the Company.

         3.       Payment of Warrant Exercise Price.

         The Exercise Price per share ("Exercise  Price") shall initially be set
as follows  (the  "Initial  Exercise  Price"):  For the first  1,200,000  shares
exercised,  the initial  exercise price shall equal the lesser of (i) the lowest
Closing Price (as defined  below) for the 5 trading days  immediately  preceding
April 27,  2000,  which is $0.78,  or (ii) the  lowest  Closing  Price for the 5
trading days prior to the date of execution of all Closing Documents (as defined
in the Letter of Agreement)  by Swartz  Private  Equity,  LLC. For the remaining
1,200,000 shares exercised, the initial exercise price shall equal the lesser of
(i)  the  lowest  Closing  Price  for 5  trading  days  prior  to  the  date  of
effectiveness  of the Registration  Statement,  or (ii) the lowest closing price
for 5 trading days prior to October 27, 2000. . If the lowest  Closing  Price of
the Company's Common Stock for the five (5) trading days  immediately  preceding
the date, if any,  that the Company and Swartz  Private  Equity,  LLC enter into
Closing  Documents  pursuant to the Letter of  Agreement  (the  "Closing  Market
Price") is less than the Initial Exercise Price, the Exercise Price with respect
to all  unexercised  shares of this warrant  shall be reset to equal the Closing
Market Price,  or, if the Date of Exercise is more than six (6) months after the
Date of Issuance,  the Exercise Price with respect to all unexercised  shares of
this warrant  shall be reset to equal the lesser of (i) the Exercise  Price then
in effect,  or (ii) the "Lowest Reset Price," as that term is defined below. The
Company shall  calculate a "Reset Price" on each six-month  anniversary  date of
the Date of Issuance which shall equal one hundred  percent (100%) of the lowest
Closing Price of the Company's Common Stock for the five (5) trading days ending
on such six-month  anniversary  date of the Date of Issuance.  The "Lowest Reset
Price"  shall  equal  the  lowest  Reset  Price   determined  on  any  six-month
anniversary date of the Date of Issuance preceding the Date of Exercise,  taking
into account, as appropriate, any adjustments made pursuant to Section 5 hereof.

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<PAGE>

         Payment of the Exercise  Price may be made by either of the  following,
or a combination thereof, at the election of Holder:

         (i) Cash Exercise: cash, bank or cashiers check or wire transfer; or

         (ii) Cashless  Exercise:  The Holder, at its option,  may exercise this
Warrant in a cashless  exercise  transaction  under this  subsection (ii) if and
only  if,  on the Date of  Exercise,  there  is not  then in  effect  a  current
registration  statement  that covers the resale of the shares of Common Stock to
be  issued  upon  exercise  of this  Warrant  . In  order to  effect a  Cashless
Exercise, the Holder shall surrender this Warrant at the principal office of the
Company  together with notice of cashless  election,  in which event the Company
shall  issue  Holder a number  of  shares of  Common  Stock  computed  using the
following formula:

                                  X = Y (A-B)/A

where:   X = the number of shares of Common Stock to be issued to Holder.

         Y = the  number of shares of Common  Stock for which  this  Warrant  is
being exercised.

A = the  Market  Price of one (1) share of Common  Stock (for  purposes  of this
Section 3(ii),  the "Market Price" shall be defined as the average Closing Price
of the Common  Stock for the five (5) trading days prior to the Date of Exercise
of this  Warrant  (the  "Average  Closing  Price"),  as  reported  by the O.T.C.
Bulletin Board,  National  Association of Securities Dealers Automated Quotation
System  ("Nasdaq") Small Cap Market, or if the Common Stock is not traded on the
Nasdaq Small Cap Market, the Average Closing Price in any other over-the-counter
market;  provided,  however,  that if the  Common  Stock  is  listed  on a stock
exchange,  the Market Price shall be the Average  Closing Price on such exchange
for the five (5) trading days prior to the date of exercise of the Warrants.  If
the Common Stock is/was not traded during the five (5) trading days prior to the
Date of Exercise,  then the closing price for the last publicly traded day shall
be deemed to be the closing  price for any and all (if  applicable)  days during
such five (5) trading day period.

                  B = the Exercise Price.

         For purposes  hereof,  the term "Closing  Price" shall mean the closing
price on the Nasdaq Small Cap Market,  the National Market System  ("NMS"),  the
New York Stock Exchange, or the O.T.C. Bulletin Board, or if no longer traded on
the Nasdaq Small Cap Market,  the National Market System  ("NMS"),  the New York
Stock Exchange,  or the O.T.C.  Bulletin Board,  the "Closing Price" shall equal
the  closing  price  on  the  principal  national  securities  exchange  or  the
over-the-counter  system on which the  Common  Stock is so  traded  and,  if not
available,  the  mean of the  high  and low  prices  on the  principal  national
securities exchange on which the Common Stock is so traded.

         For  purposes of Rule 144 and  sub-section  (d)(3)(ii)  thereof,  it is
intended,  understood  and  acknowledged  that the Common  Stock  issuable  upon
exercise of this Warrant in a cashless  exercise  transaction shall be deemed to
have  been  acquired  at the time  this  Warrant  was  issued.  Moreover,  it is
intended,  understood  and  acknowledged  that the holding period for the Common
Stock issuable upon exercise of this Warrant in a cashless exercise  transaction
shall be deemed to have commenced on the date this Warrant was issued.

         4.       Transfer and Registration.

         (a) Transfer  Rights.  Subject to the  provisions  of Section 8 of this
Warrant,  this Warrant may be transferred on the books of the Company,  in whole
or in part, in person or by attorney,  upon  surrender of this Warrant  properly
completed and endorsed.  This Warrant shall be canceled upon such surrender and,
as soon as  practicable  thereafter,  the person to whom such  transfer  is made
shall be entitled to receive a new Warrant or Warrants as to the portion of this
Warrant transferred, and Holder shall be entitled to receive a new Warrant as to
the portion hereof retained.

                                       115
<PAGE>

         (b)  Registrable  Securities.  In  addition  to any other  registration
rights of the Holder, if the Common Stock issuable upon exercise of this Warrant
is not  registered  for  resale at the time the  Company  proposes  to  register
(including  for  this  purpose  a  registration  effected  by  the  Company  for
stockholders  other  than the  Holders)  any of its Common  Stock  under the Act
(other  than a  registration  relating  solely  for the  sale of  securities  to
participants  in a Company stock plan or a registration  on Form S?4 promulgated
under the Act or any successor or similar form registering stock issuable upon a
reclassification,   upon  a  business  combination   involving  an  exchange  of
securities  or upon an exchange  offer for  securities  of the issuer or another
entity)(a  "Piggyback  Registration  Statement"),  the Company shall cause to be
included in such Piggyback Registration Statement ("Piggyback Registration") all
of the Common Stock  issuable  upon the  exercise of this Warrant  ("Registrable
Securities")  to the extent such  inclusion  does not  violate the  registration
rights of any other  securityholder  of the  Company  granted  prior to the date
hereof.  Nothing herein shall prevent the Company from withdrawing or abandoning
the Piggyback Registration Statement prior to its effectiveness.

         (c)   Limitation  on   Obligations   to  Register   under  a  Piggyback
Registration.   In  the  case  of  a  Piggyback   Registration  pursuant  to  an
underwritten  public  offering  by  the  Company,  if the  managing  underwriter
determines  and  advises  in  writing  that the  inclusion  in the  registration
statement of all Registrable  Securities proposed to be included would interfere
with the successful marketing of the securities proposed to be registered by the
Company,  then the number of such  Registrable  Securities to be included in the
Piggyback Registration  Statement, to the extent such Registrable Securities may
be included in such Piggyback Registration  Statement,  shall be allocated among
all  Holders  who had  requested  Piggyback  Registration  pursuant to the terms
hereof,  in the proportion that the number of Registrable  Securities which each
such  Holder  seeks  to  register  bears  to the  total  number  of  Registrable
Securities  sought to be included by all  Holders.  If required by the  managing
underwriter of such an  underwritten  public  offering,  the Holders shall enter
into a reasonable agreement limiting the number of Registrable  Securities to be
included  in  such  Piggyback  Registration  Statement  and the  terms,  if any,
regarding the future sale of such Registrable Securities.

         5.       Anti-Dilution Adjustments.

         (a) Stock Dividend. If the Company shall at any time declare a dividend
payable in shares of Common  Stock,  then Holder,  upon Exercise of this Warrant
after the record date for the  determination of holders of Common Stock entitled
to receive such  dividend,  shall be entitled to receive  upon  Exercise of this
Warrant,  in addition  to the number of shares of Common  Stock as to which this
Warrant is  exercised,  such  additional  shares of Common  Stock as such Holder
would have received had this Warrant been  exercised  immediately  prior to such
record date and the Exercise Price will be proportionately adjusted.

         (b)      Recapitalization or Reclassification.

(i) Stock  Split.  If the Company  shall at any time effect a  recapitalization,
reclassification  or other similar transaction of such character that the shares
of Common Stock shall be changed into or become exchangeable for a larger number
of shares (a "Stock Split"), then upon the effective date thereof, the number of
shares of Common Stock which Holder shall be entitled to purchase  upon Exercise
of this Warrant  shall be increased in direct  proportion to the increase in the
number  of  shares  of  Common   Stock  by  reason  of  such   recapitalization,
reclassification  or  similar  transaction,  and the  Exercise  Price  shall  be
proportionally decreased.

(ii)  Reverse  Stock  Split.   If  the  Company  shall  at  any  time  effect  a
recapitalization,   reclassification   or  other  similar  transaction  of  such
character  that the  shares  of Common  Stock  shall be  changed  into or become
exchangeable for a smaller number of shares (a "Reverse Stock Split"), then upon
the effective  date  thereof,  the number of shares of Common Stock which Holder
shall  be  entitled  to  purchase   upon  Exercise  of  this  Warrant  shall  be
proportionately  decreased  and  the  Exercise  Price  shall  be  proportionally
increased.  The Company shall give Holder the same notice it provides to holders
of Common Stock of any transaction described in this Section 5(b).

         (c)  Distributions.  If the Company shall at any time distribute for no
consideration  to holders of Common  Stock cash,  evidences of  indebtedness  or
other securities or assets (other than cash dividends or  distributions  payable
out of earned  surplus or net profits for the current or preceding  years) then,
in any such case,  Holder  shall be entitled to receive,  upon  Exercise of this
Warrant, with respect to each share of Common Stock issuable upon such exercise,
the amount of cash or evidences of  indebtedness  or other  securities or assets
which Holder would have been entitled to receive with respect to each such share
of Common Stock as a result of the happening of such event had this Warrant been
exercised immediately prior to the record date or other date fixing shareholders
to be affected by such event (the "Determination  Date") or, in lieu thereof, if
the Board of  Directors  of the Company  should so determine at the time of such
distribution,  a reduced  Exercise Price  determined by multiplying the Exercise
Price on the  Determination  Date by a fraction,  the  numerator of which is the
result  of such  Exercise  Price  reduced  by the  value  of  such  distribution
applicable  to one share of Common  Stock  (such value to be  determined  by the
Board of  Directors of the Company in its  discretion)  and the  denominator  of
which is such Exercise Price.

                                       116
<PAGE>

         (d)  Notice  of  Consolidation  or  Merger.  In the  event of a merger,
consolidation,  exchange of shares, recapitalization,  reorganization,  or other
similar event, as a result of which shares of Common Stock shall be changed into
the same or a different number of shares of the same or another class or classes
of stock or securities or other assets of the Company or another entity or there
is a sale  of all or  substantially  all  the  Company's  assets  (a  "Corporate
Change"),  then this Warrant shall be  exerciseable  into such class and type of
securities  or other assets as Holder would have  received had Holder  exercised
this Warrant immediately prior to such Corporate Change; provided, however, that
Company  may not affect any  Corporate  Change  unless it first shall have given
fifteen (15) business days notice to Holder hereof of any Corporate Change.

         (e)  Exercise  Price  Adjusted.  As  used  in this  Warrant,  the  term
"Exercise  Price" shall mean the purchase price per share specified in Section 3
of this Warrant,  until the occurrence of an event stated in subsection (a), (b)
or (c) of this Section 5, and thereafter  shall mean said price as adjusted from
time to time in  accordance  with the  provisions  of said  subsection.  No such
adjustment  under this  Section 5 shall be made  unless  such  adjustment  would
change the Exercise Price at the time by $.01 or more; provided,  however,  that
all  adjustments  not so made  shall be  deferred  and made  when the  aggregate
thereof would change the Exercise Price at the time by $.01 or more.

         (f) Adjustments:  Additional Shares, Securities or Assets. In the event
that at any time, as a result of an adjustment  made pursuant to this Section 5,
Holder shall,  upon Exercise of this Warrant,  become entitled to receive shares
and/or other  securities  or assets  (other than Common  Stock)  then,  wherever
appropriate,  all references herein to shares of Common Stock shall be deemed to
refer to and  include  such  shares  and/or  other  securities  or  assets;  and
thereafter the number of such shares and/or other  securities or assets shall be
subject  to  adjustment  from time to time in a manner  and upon terms as nearly
equivalent as practicable to the provisions of this Section 5.

         6.       Fractional Interests.

                  No fractional shares or scrip  representing  fractional shares
shall be issuable  upon the  Exercise of this  Warrant,  but on Exercise of this
Warrant,  Holder may purchase only a whole number of shares of Common Stock. If,
on Exercise of this Warrant,  Holder would be entitled to a fractional  share of
Common  Stock or a right to acquire a  fractional  share of Common  Stock,  such
fractional  share shall be disregarded  and the number of shares of Common Stock
issuable upon exercise shall be the next higher number of shares.

         7.       Reservation of Shares.

                  The  Company  shall at all times  reserve  for  issuance  such
number of authorized  and unissued  shares of Common Stock (or other  securities
substituted  therefor as herein above  provided) as shall be sufficient  for the
Exercise  of this  Warrant  and  payment  of the  Exercise  Price.  The  Company
covenants  and agrees  that upon the  Exercise  of this  Warrant,  all shares of
Common Stock issuable upon such exercise shall be duly and validly issued, fully
paid,  nonassessable  and not  subject  to  preemptive  rights,  rights of first
refusal or similar rights of any person or entity.

         8.       Restrictions on Transfer.

                  (a) Registration or Exemption Required.  This Warrant has been
issued in a transaction exempt from the registration  requirements of the Act by
virtue of Regulation D and exempt from state registration under applicable state
laws.  The  Warrant  and the Common  Stock  issuable  upon the  Exercise of this
Warrant may not be pledged,  transferred, sold or assigned except pursuant to an
effective  registration  statement or unless the Company has received an opinion
from the Company's counsel to the effect that such registration is not required,
or the Holder has  furnished to the Company an opinion of the Holder's  counsel,
which  counsel shall be reasonably  satisfactory  to the Company,  to the effect
that  such  registration  is  not  required;  the  transfer  complies  with  any
applicable state securities laws; and, if no registration covering the resale of
the Warrant Shares is effective at the time the Warrant  Shares are issued,  the
Holder consents to a legend being placed on certificates  for the Warrant Shares
stating that the securities  have not been  registered  under the Securities Act
and referring to such restrictions on transferability and sale.

                                       117
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                  (b)  Assignment.  If  Holder  can  provide  the  Company  with
reasonably  satisfactory  evidence that the  conditions  of (a) above  regarding
registration  or  exemption  have been  satisfied,  Holder  may sell,  transfer,
assign, pledge or otherwise dispose of this Warrant, in whole or in part. Holder
shall  deliver a written  notice to  Company,  substantially  in the form of the
Assignment  attached  hereto as Exhibit B,  indicating  the person or persons to
whom the Warrant shall be assigned and the  respective  number of warrants to be
assigned to each assignee.  The Company shall effect the  assignment  within ten
(10) days, and shall deliver to the  assignee(s)  designated by Holder a Warrant
or Warrants of like tenor and terms for the appropriate number of shares.

                  (c)  Investment  Intent.  Holder is acquiring this Warrant for
                  his, her or its own account (or a trust account if such Holder
                  is a trustee) for investment and not as a nominee and not with
                  a present view to the distribution thereof.

         9.       Benefits of this Warrant.

                  Nothing in this Warrant  shall be construed to confer upon any
person other than the Company and Holder any legal or equitable right, remedy or
claim under this  Warrant and this Warrant  shall be for the sole and  exclusive
benefit of the Company and Holder.

         10.      Applicable Law.

                  This  Warrant is issued  under and shall for all  purposes  be
governed by and construed in accordance  with the laws of the state of Delaware,
without giving effect to conflict of law provisions thereof.

         11.      Loss of Warrant.

                  Upon  receipt by the Company of  evidence of the loss,  theft,
destruction  or mutilation of this Warrant,  and (in the case of loss,  theft or
destruction)  of indemnity or security  reasonably  satisfactory to the Company,
and upon surrender and cancellation of this Warrant,  if mutilated,  the Company
shall execute and deliver a new Warrant of like tenor and date.

         12.      Notice or Demands.

Notices or demands  pursuant to this Warrant to be given or made by Holder to or
on the  Company  shall be  sufficiently  given or made if sent by  certified  or
registered mail, return receipt requested, postage prepaid, and addressed, until
another  address is  designated  in writing by the  Company,  to the address set
forth in Section 2(a) above.  Notices or demands  pursuant to this Warrant to be
given or made by the Company to or on Holder shall be sufficiently given or made
if sent by certified or  registered  mail,  return  receipt  requested,  postage
prepaid,  and  addressed,  to the  address of Holder set forth in the  Company's
records, until another address is designated in writing by Holder.

         IN WITNESS WHEREOF, the undersigned has executed this Warrant as of the
5th day of May, 2000.

                  COSMOZ.COM, INC.

         By: /s/ Wilfred Shaw
                 ----------------------------
                 Wilfred Shaw, Chairman & CEO

                                       118
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                                    EXHIBIT A

                            EXERCISE FORM FOR WARRANT

TO: COSMOZ.COM, INC.
         The  undersigned  hereby  irrevocably  exercises  the right to purchase
____________  of the shares of Common Stock (the "Common  Stock") of COSMOZ.COM,
INC. a Delaware  corporation (the "Company"),  evidenced by the attached warrant
(the  "Warrant"),  and herewith makes payment of the exercise price with respect
to such shares in full, all in accordance  with the conditions and provisions of
said Warrant.

1. The undersigned agrees not to offer,  sell,  transfer or otherwise dispose of
any  of the  Common  Stock  obtained  on  exercise  of the  Warrant,  except  in
accordance with the provisions of Section 8(a) of the Warrant.

2. The undersigned  requests that stock  certificates  for such shares be issued
free of any restrictive legend, if appropriate,  and a warrant  representing any
unexercised portion hereof be issued, pursuant to the Warrant in the name of the
undersigned and delivered to the undersigned at the address set forth below:

Dated: _________

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Signature

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Print Name

------------------------------------------------------------------------
Address

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NOTICE

The  signature to the  foregoing  Exercise  Form must  correspond to the name as
written  upon the face of the  attached  Warrant  in every  particular,  without
alteration or enlargement or any change whatsoever.

------------------------------------------------------------------------

                                    EXHIBIT B

                                   ASSIGNMENT

(To be executed by the registered holder
desiring to transfer the Warrant)

FOR  VALUE  RECEIVED,  the  undersigned  holder  of the  attached  warrant  (the
"Warrant") hereby sells,  assigns and transfers unto the person or persons below
named the right to purchase  _______  shares of the Common Stock of  COSMOZ.COM,
INC.,  evidenced by the attached Warrant and does hereby irrevocably  constitute
and appoint _______________________ attorney to transfer the said Warrant on the
books of the Company, with full power of substitution in the premises.

Dated:                                    ----------------------------
                                                   Signature

                                       119
<PAGE>

Fill in for new registration of Warrant:

 -----------------------------------
                  Name

-----------------------------------
                  Address

-----------------------------------
Please print name and address of assignee
(including zip code number)

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NOTICE

The signature to the foregoing Assignment must correspond to the name as written
upon the face of the attached Warrant in every particular, without alteration or
enlargement or any change whatsoever.

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                                       120<PAGE>

                                                                     EXHIBIT 4.1

                         SECURITIES PURCHASE AGREEMENT

     Securities Purchase Agreement dated as of August 4, 2000 (this "Agreement")
by and between Inforetech Wireless Technology Inc., a Nevada corporation, with
principal executive offices located at Suite 214, 5500 - 152/nd/ Street, Surrey,
British Columbia, Canada V3S 8E7 (the "Company"), and The Shaar Fund Ltd.
("Buyer").

     WHEREAS, Buyer desires to purchase from the Company, and the Company
desires to issue and sell to Buyer, upon the terms and subject to the conditions
of this Agreement, the (i)  8% Convertible Debenture of the Company in the
aggregate principal amount of $1,000,000 (U.S.), in the form attached hereto as
Exhibit A (the "Debenture"), and (ii) Common Stock Purchase Warrant in the form
---------
attached hereto as Exhibit B (the "Warrant") to purchase up to 100,000 shares of
                   ---------
the Company's Class A Common Equity Voting Stock, par value $0.001 per share
("Common Stock");

     WHEREAS, upon the terms and subject to the conditions set forth in the
Debenture, the Debenture is convertible into shares of Common Stock; and

     WHEREAS, the Warrant, upon the terms and subject to the conditions
specified in the Warrant, will be exercisable for a period of five (5) years;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein, the parties hereto, intending to be legally bound, hereby
agree as follows:

I.        PURCHASE AND SALE OF DEBENTURE AND WARRANT

A.        Transaction.   Buyer hereby agrees to purchase from the Company, and
the Company has offered and hereby agrees to issue and sell to Buyer in a
transaction exempt from the registration and prospectus delivery requirements of
the Securities Act of 1933, as amended (the "Securities Act"), the Debenture and
the Warrant.

B.        Purchase Price; Form of Payment.  The purchase price for the Debenture
and the Warrant to be purchased by Buyer hereunder shall be $1,000,000 (U.S.)
(the "Purchase Price").  Simultaneously with the execution of this Agreement,
Buyer shall pay the Purchase Price by wire transfer of immediately available
funds to the escrow agent (the "Escrow Agent") identified in those certain
Escrow Instructions of even date herewith, a copy of which is attached hereto as
Exhibit C (the "Escrow Instructions").  Simultaneously with the execution of
---------
this Agreement, the Company shall deliver the Debenture (which shall have been
duly authorized, issued and executed I/N/O Buyer or, if the Company otherwise
has been notified, I/N/O Buyer's nominee) and the Warrant to the Escrow Agent or
its designated depository.  By executing and delivering this Agreement, Buyer
and the Company each hereby agree to observe the terms and conditions of the
Escrow Instructions, all of which are incorporated herein by reference as if
fully set forth herein.

C.        Method of Payment.  Payment into escrow of the Purchase Price shall be
made as set forth in the Escrow Instructions.
<PAGE>

II.       BUYER'S REPRESENTATIONS AND WARRANTIES

     Buyer represents and warrants to and covenants and agrees with the Company
as follows:

A.        Buyer is purchasing the Debenture, the Warrant, the Common Stock
issuable upon exercise of the Warrant (the "Warrant Shares"), the Common Stock,
if any, issuable in payment of interest on the Debenture (the "Interest
Shares"), and the Common Stock issuable upon conversion or redemption of the
Debenture (the "Conversion Shares" and, collectively with the Debenture, the
Warrant, the Warrant Shares and the Interest Shares, the "Securities") for its
own account, for investment purposes only and not with a view towards or in
connection with the public sale or distribution thereof in violation of the
Securities Act.

B.        Buyer is (i) an "accredited investor" within the meaning of Rule 501
of Regulation D under the Securities Act, (ii) experienced in making investments
of the kind contemplated by this Agreement, (iii) capable, by reason of its
business and financial experience, of evaluating the relative merits and risks
of an investment in the Securities and (iv) able to afford the loss of its
investment in the Securities.

C.        Buyer understands that the Securities are being offered and sold by
the Company in reliance on an exemption from the registration requirements of
the Securities Act and equivalent state securities and "blue sky" laws, and that
the Company is relying upon the accuracy of, and Buyer's compliance with,
Buyer's representations, warranties and covenants set forth in this Agreement to
determine the availability of such exemption and the eligibility of Buyer to
purchase the Securities;

D.        Buyer understands that the Securities have not been approved or
disapproved by the Securities and Exchange Commission (the "Commission") or any
state securities commission.

E.        This Agreement has been duly and validly authorized, executed and
delivered. by Buyer and is a valid and binding agreement of Buyer enforceable
against it in accordance with its terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditors' rights and remedies generally and except as rights to
indemnity and contribution may be limited by federal or state securities laws or
the public policy underlying such laws.

F.        Neither Buyer nor its affiliates nor any person acting on its or their
behalf (i) has the intention of entering into, or will enter into, any put
option, short position or other similar instrument or position with respect to
the Common Stock while the Debenture is outstanding and (ii) will use at any
time shares of Common Stock acquired pursuant to this Agreement, the Debenture
or the Warrant to settle any put option, short position or other similar
instrument or position that may have been entered into prior to the execution of
this Agreement.

III.        THE COMPANY'S REPRESENTATIONS

     The Company represents and warrants to Buyer that:
A.        Capitalization.
<PAGE>

     1.        The authorized capital stock of the Company consists of (i)
     100,000,000 shares of Common Stock, of which 10,989,522 shares are issued
     and outstanding as of the date hereof and (ii) 10,000,000 shares of Class B
     Special Voting Non-Equity Common Stock, par value $0.001 per share, of
     which 7,002,030 shares are issued and outstanding as of the date hereof.
     All of the issued and outstanding shares of capital stock of the Company
     have been duly authorized and validly issued and are fully paid and
     nonassessable. As of the date hereof, the Company has outstanding options
     to purchase 2,305,000 shares of Common Stock, warrants to purchase
     1,946,500 shares of Common Stock and other securities or agreements
     entitling the holders thereof to purchase or convert into 7,752,283 shares
     of Common Stock. The exercise, conversion or subscription price and expiry
     date for each such outstanding option, warrant and other security or
     agreement is accurately set forth on Schedule III.A.1.
                                          -----------------

     2.        The Conversion Shares, the Interest Shares and the Warrant Shares
     have been duly and validly authorized and reserved for issuance by the
     Company, and when issued by the Company upon conversion of, or in lieu of
     cash dividends on, the Debenture and on exercise of the Warrant will be
     duly and validly issued, fully paid and nonassessable and will not subject
     the holder thereof to personal liability by reason of being such holder.

     3.        Except as disclosed on Schedule III.A.3., there are no
                                      -----------------
     preemptive, subscription, "call," right of first refusal or other similar
     rights to acquire any capital stock of the Company or any of its
     Subsidiaries (as such term is hereinafter defined) or other voting
     securities of the Company that have been issued or granted to any person
     and no other obligations of the Company or any of its Subsidiaries to
     issue, grant, extend or enter into any security, option, warrant, "call,"
     right, commitment, agreement, arrangement or undertaking with respect to
     any of their respective capital stock.

     4.        Schedule III.A.4. lists all the subsidiaries of the Company (the
               -----------------
     "Subsidiaries"). Except as disclosed on Schedule III.A.4., the Company does
                                             -----------------
     not own or control, directly or indirectly, any interest in any other
     corporation, partnership, limited liability company, unincorporated
     business organization, association, trust or other business entity.

     5.        The Company has delivered to Buyer complete and correct copies of
     the Articles of Incorporation and the By-Laws of each of the Company and
     the Subsidiaries, in each case as amended to the date of this Agreement.
     Except as set forth on Schedule III.A.5., the Company has delivered to
                            -----------------
     Buyer true and complete copies of all minutes of the Board of Directors of
     the Company (the "Board of Directors") since January 1, 1999.

B.        Organization; Reporting Company Status.

     1.        Each of the Company and the Subsidiaries is a corporation duly
     organized, validly existing and in good standing under the laws of the
     state or jurisdiction in which it is incorporated and is duly qualified as
     a foreign corporation in all jurisdictions in which the failure so to
     qualify would reasonably be expected to have a
<PAGE>

     material adverse effect on the business, properties, prospects, condition
     (financial or otherwise) or results of operations of the Company and the
     Subsidiaries taken as a whole or on the consummation of any of the
     transactions contemplated by this Agreement (a "Material Adverse Effect").

     2.        The Company has registered the Common Stock pursuant to Section
     12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act").
     The Common Stock is traded on the OTC Bulletin Board service of the
     National Association of Securities Dealers, Inc. ("OTCBB") and the Company
     has not received any notice regarding, and to its knowledge there is no
     threat of, the termination or discontinuance of the eligibility of the
     Common Stock for such trading.

C.        Authorization.  The Company (i) has duly and validly authorized and
reserved for issuance 16,007,218 shares of Common Stock, which is a number
sufficient for the conversion of and the payment of interest (in lieu of cash
payments) on the Debenture and the exercise of the Warrant in full and (ii) at
all times from and after the date hereof shall have a sufficient number of
shares of Common Stock duly and validly authorized and reserved for issuance to
satisfy the conversion of the Debenture, the payment of interest (in lieu of
cash payments) on the Debenture and the exercise of the Warrant in full.  The
Company understands and acknowledges the potentially dilutive effect on the
Common Stock of the issuance of the Conversion Shares, the Interest Shares and
the Warrant Shares upon the conversion of, and payment of interest on, the
Debenture and the exercise of the Warrant, respectively.  The Company further
acknowledges that its obligation to issue Conversion Shares upon conversion of
the Debenture and Warrant Shares upon exercise of the Warrant in accordance with
this Agreement, the Debenture and the Warrant is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership
interests of other stockholders of the Company and notwithstanding the
commencement of any case under 11 U.S.C. (S) 101 et seq. (the "Bankruptcy
                                                 -- ---
Code").  In the event the Company is a debtor under the Bankruptcy Code, the
Company hereby waives to the fullest extent permitted any rights to relief it
may have under 11 U.S.C. (S)362 in respect of the conversion of the Debenture
and the exercise of the Warrant.  The Company agrees, without cost or expense to
Buyer, to take or consent to any and all action necessary to effectuate relief
under 11 U.S.C. (S) 362.  Schedule III.C. sets forth (i) all issuances and sales
                          ----------------
by the Company since December 31, 1999 of its capital stock and other securities
convertible into or exercisable or exchangeable for capital stock of the
Company, (ii) the amount of such securities sold, including the amount of any
underlying shares of capital stock, (iii) the purchaser(s) thereof, (iv) the
amount(s) paid therefor and (v) the material terms of all outstanding capital
stock of the Company (other than the Common Stock).

D.        Authority; Validity and Enforceability.  The Company has the requisite
corporate power and authority to enter into the Documents (as such term is
hereinafter defined) and to perform all of its obligations hereunder and
thereunder (including the issuance, sale and delivery to Buyer of the
Securities).  The execution, delivery and performance by the Company of the
Documents and the consummation by the Company of the transactions contemplated
hereby and thereby (including, without limitation, the issuance of the Debenture
and the Warrant and the issuance and reservation for issuance of the Conversion
Shares, the Interest Shares and the Warrant Shares) have been duly and validly
authorized by all necessary corporate action on the part of the Company.  Each
of the Documents has been duly and validly executed and delivered by the Company
and each Document constitutes a valid and binding obligation of the
<PAGE>

Company enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws affecting creditors' rights and remedies generally
and except as rights to indemnity and contribution may be limited by federal or
state securities laws or the public policy underlying such laws. The Securities
have been duly and validly authorized for issuance by the Company and, when
executed and delivered by the Company, will be valid and binding obligations of
the Company enforceable against it in accordance with their respective terms,
subject to applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and similar laws affecting creditors' rights and
remedies generally. For purposes of this Agreement, the term "Documents" means
(i) this Agreement; (ii) the Registration Rights Agreement dated as of even date
herewith between the Company and Buyer, a copy of which is annexed hereto as
Exhibit D (the "Registration Rights Agreement"); (iii) the Debenture; (iv) the
---------
Warrant; and (v) the Escrow Instructions.

E.        Validity of Issuance of the Securities.  The Debenture and the Warrant
as of the Closing Date (as such term is hereinafter defined), and the Conversion
Shares, the Interest Shares and the Warrant Shares upon their issuance in
accordance with the Debenture and the Warrant, respectively, will be validly
issued and outstanding, fully paid and nonassessable, and not subject to any
preemptive rights, rights of first refusal, tag-along rights, drag-along rights
or other similar rights.

F.        Non-contravention.  The execution and delivery by the Company of the
Documents, the issuance of the Securities, and the consummation by the Company
of the other transactions contemplated hereby and thereby do not, and compliance
with the provisions of this Agreement and other Documents will not, conflict
with, or result in any violation of, or default (with or without notice or lapse
of time, or both) under, or give rise to a right of termination, cancellation or
acceleration of any obligation or loss of a material benefit under, or result in
the creation of any Lien (as such term is hereinafter defined) upon any of the
properties or assets of the Company or any of its Subsidiaries under, or result
in the termination of, or require that any consent be obtained or any notice be
given with respect to (i) the Articles of Incorporation or By-Laws of the
Company or the comparable charter or organizational documents of any of its
Subsidiaries, in each case as amended to the date of this Agreement, (ii) any
loan or credit agreement, note, bond, mortgage, indenture, lease, contract or
other agreement, instrument or permit applicable to the Company or any of its
Subsidiaries or their respective properties or assets or (iii) any Law (as such
term is hereinafter defined) applicable to, or any judgment, decree or order of
any court or government body having jurisdiction over, the Company or any of its
Subsidiaries or any of their respective properties or assets.

G.        Approvals.  No authorization, approval or consent of any court or
public or governmental authority is required to be obtained by the Company for
the issuance and sale of the Debenture or the Warrant (or the Conversion Shares,
the Interest Shares or Warrant Shares) to Buyer as contemplated by this
Agreement, except such authorizations, approvals and consents as have been
obtained by the Company prior to the date hereof.

H.        Commission Filings.  The Company has properly and timely filed with
the Commission all reports, proxy statements, forms and other documents required
to be filed with the Commission under the Securities Act and the Exchange Act
since becoming subject to such Acts (the "Commission Filings").  As of their
respective dates, (i) the Commission Filings
<PAGE>

complied in all material respects with the requirements of the Securities Act or
the Exchange Act, as the case may be, and the rules and regulations of the
Commission promulgated thereunder applicable to such Commission Filings and (ii)
none of the Commission Filings contained at the time of its filing any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. The financial
statements of the Company included in the Commission Filings, as of the dates of
such documents, were true and complete in all material respects and complied
with applicable accounting requirements and the published rules and regulations
of the Commission with respect thereto, were prepared in accordance with
generally accepted accounting principles in the United States ("GAAP") (except
in the case of unaudited statements permitted by Form 10-Q under the Exchange
Act) applied on a consistent basis during the periods involved (except as may be
indicated in the notes thereto) and fairly presented the consolidated financial
position of the Company and its Subsidiaries as of the dates thereof and the
consolidated results of their operations and cash flows for the periods then
ended (subject, in the case of unaudited statements, to normal year-end audit
adjustments that in the aggregate are not material and to any other adjustment
described therein).

I.        Absence of Certain Changes.  Since the Balance Sheet Date (as such
term is hereinafter defined), there has not occurred any change, event or
development in the business, financial condition, prospects or results of
operations of the Company and the Subsidiaries, there has not existed any
condition having or reasonably likely to have a Material Adverse Effect, and the
Company and the Subsidiaries have conducted their respective businesses only in
the ordinary course.

J.        Full Disclosure.  There is no fact known to the Company (other than
general economic or industry conditions known to the public generally) that has
not been fully disclosed in writing to Buyer that (i) reasonably could be
expected to have a Material Adverse Effect or (ii) reasonably could be expected
to materially and adversely affect the ability of the Company to performing its
obligations pursuant to the Documents.

K.        Absence of Litigation.  There are (i) no suits, actions or proceedings
pending or, to the knowledge of the Company, threatened against the Company or
any of its Subsidiaries, (ii) no complaints, lawsuits, charges or other
proceedings pending or, to the knowledge of the Company, threatened in any forum
by or on behalf of any present or former employee of the Company or any of its
Subsidiaries, any applicant for employment or classes of the foregoing alleging
breach of any express or implied contract of employment, any applicable law
governing employment or the termination thereof or other discriminatory,
wrongful or tortuous conduct in connection with the employment relationship and
(iii) no judgments, decrees, injunctions or orders of any court or other
governmental entity or arbitrator outstanding against the Company or any
Subsidiary.

L.        Absence of Events of Default.  No "Event of Default" (as defined in
any agreement or instrument to which the Company is a party) and no event which,
with notice, lapse of time or both, would constitute an Event of Default (as so
defined), has occurred and is continuing.
<PAGE>

M.        Financial Statements; No Undisclosed Liabilities.  The Company has
delivered to Buyer true and complete copies of the (i) audited balance sheet of
the Company and the Subsidiaries as at December 31, 1999, 1998, and 1997,
respectively, and the related audited statements of income, changes in
stockholders' equity and cash flows for the three fiscal years ended December
31, 1999 including the related notes and schedules thereto and (ii) unaudited
balance sheets of the Company and the Subsidiaries and the statements of income,
changes in stockholders' equity and cash flows as at the end of and for each
fiscal quarter ended since December 31, 1999 including the related notes and
schedules thereto, all certified by the chief financial officer of the Company
(collectively, the "Financial Statements"), and all management letters, if any,
from the Company's independent auditors relating to the dates and periods
covered by the Financial Statements.  Each of the Financial Statements is
complete and correct in all material respects, has been prepared in accordance
with GAAP (subject, in the case of the interim Financial Statements, to normal
year end adjustments and the absence of footnotes) and fairly presents the
financial position, results of operations and cash flows of the Company as at
the dates and for the periods indicated.  For purposes hereof, the audited
balance sheet of the Company as at December 31, 1999, is hereinafter referred to
as the "Balance Sheet" and December 31, 1999 is hereinafter referred to as the
"Balance Sheet Date".  The Company has no indebtedness, obligations or
liabilities of any kind (whether acquired, absolute, contingent or otherwise,
and whether due or to become due), which was not fully reflected in, reserved
against or otherwise described in the Balance Sheet or the notes thereto or
incurred in the ordinary course of business consistent with the Company's past
practices since the Balance Sheet Date.

N.        Compliance with Laws; Permits.  Each of the Company and its
Subsidiaries is in compliance with all laws, rules, regulations, codes,
ordinances and statutes (collectively, "Laws") applicable to it or to the
conduct of its business.  The Company possesses all material permits, approvals,
authorizations, licenses, certificates and consents from all public and
governmental authorities which are necessary to conduct its business.

O.        Related Party Transactions.  Except as set forth on Schedule III.O.,
                                                              ---------------
neither the Company nor any of its officers, directors or "Affiliates" (as such
term is defined in Rule 12b-2 under the Exchange Act) nor any family member of
any officer, director or Affiliate of the Company has borrowed any moneys from
or has outstanding any indebtedness or other similar obligations to the Company
or any of the Subsidiaries.  Except as set forth on Schedule III.O., neither the
                                                    ---------------
Company nor any of its officers, directors or Affiliates nor any family member
of any officer, director or Affiliate of the Company (i) owns any direct or
indirect interest constituting more than a one percent (1%) equity (or similar
profit participation) interest in, or controls or is a director, officer,
partner, member or employee of, or consultant or lender to or borrower from, or
has the right to participate in the profits of, any person or entity which is
(x) a competitor, supplier, customer, landlord, tenant, creditor or debtor of
the Company or any Subsidiary, (y) engaged in a business related to the business
of the Company or any Subsidiary or (z) a participant in any transaction to
which the Company or any Subsidiary is a party or (ii) is a party to any
contract, agreement, commitment or other arrangement with the Company or any
Subsidiary.

P.        Insurance.  Each of the Company and the Subsidiaries maintains
property and casualty, general liability, workers' compensation, environmental
hazard, personal injury and other similar types of insurance with financially
sound and reputable insurers that is adequate
<PAGE>

and consistent with industry standards and the Company's historical claims
experience. None of the Company or the Subsidiaries has received notice from,
and none of them has knowledge of any threat by, any insurer (that has issued
any insurance policy to the Company or any Subsidiary) that such insurer intends
to deny coverage under or cancel, discontinue or not renew any insurance policy
presently in force.

Q.        Securities Law Matters.  Assuming the accuracy of the representations
and warranties of Buyer set forth in Article II, the offer and sale by the
Company of the Securities is exempt from (i) the registration and prospectus
delivery requirements of the Securities Act and the rules and regulations of the
Commission thereunder and (ii) the registration and/or qualification provisions
of all applicable state securities and "blue sky" laws.  Other than pursuant to
an effective registration statement under the Securities Act, the Company has
not issued, offered or sold any  security similar to the Debenture or the
Warrant, or any shares of Common Stock (including for this purpose any
securities of the same or a similar class as the Common Stock or any other
securities convertible into or exchangeable or exercisable for Common Stock or
any such other securities) within the one-year period next preceding the date
hereof, except as disclosed on Schedule III.Q.,  and the Company shall not
                               ---------------
directly or indirectly take, and shall not permit any of its directors, officers
or Affiliates directly or indirectly to take, any action (including, without
limitation, any offering or sale to any person or entity of any  security
similar to the Debenture or the Warrant, shares of Common Stock) which will make
unavailable the exemption from Securities Act registration being relied upon by
the Company for the offer and sale to Buyer of the Debenture and the Warrant
(and the Conversion Shares, the Interest Shares and the Warrant Shares) as
contemplated by this Agreement.  No form of general solicitation or advertising
has been used or authorized by the Company or any of its officers, directors or
Affiliates in connection with the offer or sale of the Debenture and the Warrant
(and the Conversion Shares, the Interest Shares and the Warrant Shares) as
contemplated by this Agreement or any other agreement to which the Company is a
party.

R.        Environmental Matters.

        With respect to environmental matters:

     1.        The Company, the Subsidiaries and their respective operations are
     in compliance with all applicable Environmental Laws (as such term is
     hereinafter defined) and all permits (including terms, conditions and
     limitations therein) issued pursuant to Environmental Laws or otherwise;

     2.        Each of the Company and the Subsidiaries has all permits,
     licenses, waivers, exceptions, and exemptions required under all applicable
     Environmental Laws necessary to operate its business;

     3.        None of the Company or the Subsidiaries is the subject of any
     outstanding written order of or agreement with any governmental authority
     or person respecting (i) Environmental Laws or permits, (ii) Remedial
     Action (as such term is hereinafter defined) or (iii) any Release (as such
     term is hereinafter defined) or threatened Release of Hazardous Materials
     (as such term is hereinafter defined);
<PAGE>

     4.        None of the Company or the Subsidiaries has received any written
     communication alleging that it may be in violation of any Environmental Law
     or any permit issued pursuant to any Environmental Law, or may have any
     liability under any Environmental Law;

     5.        None of the Company or the Subsidiaries has any liability,
     contingent or otherwise, in connection with any presence, treatment,
     storage, disposal or Release of any Hazardous Materials whether on property
     owned or operated by the Company or any Subsidiary or property of third
     parties, and none of the Company or the Subsidiaries has transported, or
     arranged for transportation of, any Hazardous Materials for treatment or
     disposal on any property;

     6.        There are no investigations of the business, operations, or
     currently or previously owned, operated or leased property of the Company
     or any Subsidiary pending or threatened which could lead to the imposition
     of any case or liability pursuant to any Environmental Law;

     7.        There is not located at any of the properties owned or operated
     by the Company or any Subsidiary any (A) underground storage tanks, (B)
     asbestos-containing material or (C) equipment containing polychlorinated
     biphenyls;

     8.        Each of the Company and the Subsidiaries has provided to Buyer
     all environmentally related assessments, audits, studies, reports,
     analyses, and results of investigations that have been performed with
     respect to the currently or previously owned, leased or operated properties
     or activities of the Company and such Subsidiaries;

     9.        There are no liens arising under or pursuant to any Environmental
     Law on any real property owned, operated, or leased by the Company or any
     Subsidiary, and no action of any governmental authority has been taken or,
     to the knowledge of the Company, is in process of being taken which could
     subject any of such properties to such liens, and none of the Company or
     the Subsidiaries has been or is expected to be required to place any notice
     or restriction relating to the presence of Hazardous Material at any real
     property owned, operated, or leased by it in any deed to such property;

     10.       Neither the Company nor any of the Subsidiaries owns, operates,
     or leases any hazardous waste generation, treatment, storage, or disposal
     facility, as such terms are used pursuant to RCRA (as such term is
     hereinafter defined) and related or analogous state, local or foreign law.
     None of the properties owned, operated or leased by the Company, any of the
     Subsidiaries or any predecessor thereof are now, or were in the past, used
     in any part as a dump, landfill, or disposal site, and neither the Company,
     any of the Subsidiaries nor any predecessor of any of them has filled any
     wetlands;

     11.        The purchase that is the subject of this Agreement will not
     require any governmental approvals under Environmental Laws, including
     those that are triggered by sales or transfers of businesses or real
     property, including, as examples and without limitation, the New Jersey
     Industrial Site Recovery Act, N.J. Stat. 13:1K-7 et seq., and the
                                                      -- ----
     Connecticut Transfer of Establishments Act, Conn. Gen. Stat. (S) 22a-134 et
                                                                              --
     seq.;
     ----
<PAGE>

     12.       There is no currently existing requirement or requirement to be
     imposed in the future by any Environmental Law or Environmental Permit
     which could result in the incurrence of a cost that could be reasonably
     expected to have a Material Adverse Effect and

     13.       Each of the Company and each of the Subsidiaries has disclosed to
     Buyer all other acts or conditions that could result in any costs or
     liabilities under Environmental Laws.

          For purposes of this Section III.R.:

          "Environmental Law" means any foreign, federal, state or local
statute, regulation, ordinance, or common law as now or hereafter in effect in
any way relating to the protection of human health, safety or welfare, or the
environment including, without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act, the Hazardous Materials Transportation
Act, the Resource Conservation and Recovery Act ("RCRA"), the Clean Water Act,
the Clean Air Act, the Toxic Substances Control Act, the Federal Insecticide,
Fungicide, and Rodenticide Act and the Occupational Safety and Health Act, and
the regulations promulgated pursuant to any of them;

          "Hazardous Material" means any substance that is listed, classified or
regulated pursuant to any Environmental Law, including petroleum, gasoline, and
any other petroleum product, by-product, fraction or derivative, asbestos or
asbestos-containing material, lead-containing paint, water or plumbing,
polychlorinated biphenyls, radioactive materials and radon;

          "Release" means any placement, release, spill, filtration, emission,
leaking, pumping, injection, deposit, disposal, discharge, dispersal, migration,
or leaching to, through, or under the indoor or outdoor environment, or into,
through, under, or out of any property and

          "Remedial Action" means any action to (x) clean up, remove, remediate,
treat or in any other way address any Hazardous Material; (y) prevent or contain
the Release of any Hazardous Material or (z) perform studies and investigations
or post-remedial monitoring and care in relation to clause (x) or (y) above.

S.        Labor Matters.  Neither the Company nor any of the Subsidiaries is
party to any labor or collective bargaining agreement, and there are no labor or
collective bargaining agreements which pertain to any employees of the Company
or any Subsidiary.  No employees of the Company or any of the Subsidiaries are
represented by any labor organization and none of such employees has made a
pending demand for recognition, and there are no representation proceedings or
petitions seeking a representation proceeding presently pending or, to the
Company's knowledge, threatened to be brought or filed, with the National Labor
Relations Board or other labor relations tribunal.  There is no organizing
activity involving the Company or any Subsidiary pending or to the Company's
knowledge, threatened by any labor organization or group of employees of the
Company or any of the Subsidiaries.  There are no (i) strikes, work stoppages,
slowdowns, lockouts or arbitrations or (ii) material grievances or other labor
disputes pending or, to the knowledge of the Company, threatened against or
involving the Company or any of the Subsidiaries.  There are no unfair labor
practice charges, grievances or complaints
<PAGE>

pending or, to the knowledge of the Company, threatened by or on behalf of any
employee or group of employees of the Company or any of the Subsidiaries.

T.        ERISA Matters.  All Plans (as such term is hereinafter defined)
maintained by the Company or any of its Subsidiaries and ERISA Affiliates (as
such term is hereinafter defined) are listed in Schedule III.T. and copies of
                                                ---------------
all documentation relating to such Plans (including, but not limited to, copies
of written Plans, written descriptions of oral Plans, summary plan descriptions,
trust agreements, the three most recent annual returns, employee communications
and IRS (as such term is hereinafter defined) determination letters) have been
delivered to or made available for review by the Buyer.  Each Plan has at all
times been maintained and administered in all material respects in accordance
with its terms and the requirements of applicable law, including ERISA (as such
term is hereinafter defined) and the Code (as such term is hereinafter defined),
and each Plan intended to qualify under Section 401 (a) of the Code has at all
times since its adoption been so qualified, and each trust which forms a part of
any such Plan has at all times since its adoption been tax-exempt under Section
501(a) of the Code.  The Company and each of its Subsidiaries and ERISA
Affiliates are in compliance in all material respects with all provisions of
ERISA applicable to it.  No Reportable Event (as such term is hereinafter
defined) has occurred, been waived or exists as to which the Company or any of
its Subsidiaries and ERISA Affiliates was required to file a report with the
PBGC, and the present value of all liabilities under each Pension Plan (as such
term is hereinafter defined) (based on those assumptions used to fund such
Pension Plans) listed in Schedule III.T. did not, as of the most recent annual
                         ---------------
valuation date applicable thereto, exceed the value of the assets of such
Pension Plan.  None of the Company, its Subsidiaries and ERISA Affiliates has
incurred, or reasonably expects to incur, any Withdrawal Liability (as such term
is hereinafter defined) with respect to any Multi-employer Plan (as such term is
hereinafter defined) that could result in a Material Adverse Effect.  None of
the Company, its Subsidiaries and ERISA Affiliates has received any notification
that any Multi-employer Plan is in reorganization or has been terminated within
the meaning of Title IV of ERISA, and no Multi-employer Plan is reasonably
expected to be in reorganization or termination where such reorganization or
termination has resulted or could reasonably be expected to result in increases
to the contributions required to be made to such Multi-employer Plan or
otherwise.  No direct, contingent or secondary liability has been incurred or is
expected to be incurred by the Company or any of its Subsidiaries under Title IV
of ERISA to any party with respect to any Plan, or with respect to any other
Plan presently or heretofore maintained or contributed to by any ERISA
Affiliate.  Neither the Company nor any of its Subsidiaries and ERISA Affiliates
has incurred any liability for any tax imposed under Sections 4971 through 4980B
of the Code or civil liability under Section 502(i) or (l) of ERISA.  No suit,
action or other litigation or any other claim which could reasonably be expected
to result in a material liability or expense to the Company or any of its
Subsidiaries or ERISA Affiliates (excluding claims for benefits incurred in the
ordinary course of plan activities) has been brought or, to the knowledge of the
Company, threatened against or with respect to any Plan and there are no facts
or circumstances known to the Company or any of its Subsidiaries or ERISA
Affiliates that could reasonably be expected to give rise to any such suit,
action or other litigation.  All contributions to Plans that were required to be
made under such Plans have been made, and all benefits accrued under any
unfunded Plan have been paid, accrued or otherwise adequately reserved in
accordance with GAAP, all of which accruals under unfunded Plans are as
disclosed in Schedule III.T., and the Company, its Subsidiaries and ERISA
             ---------------
Affiliates have each performed all material obligations required to be performed
under all Plans.  The execution, delivery and performance of this Agreement and
the other Documents and the consummation of

                                       11
<PAGE>

the transactions contemplated hereby and thereby (including, without limitation,
the offer, issue and sale by the Company, and the purchase by the Buyer, of the
Debenture, the Conversion Shares, the Warrant, the Warrant Shares and Interest
Shares) will not involve any "prohibited transaction" within the meaning of
ERISA or the Code with respect to any Plan.

          As used in this Agreement:

          "Code" means the Internal Revenue Code of 1986, as amended.

          "ERISA" means the Employee Retirement Income Security Act of 1974, or
any successor statute, together with the regulations thereunder, as the same may
be amended from time to time.

          "ERISA Affiliate" means any trade or business (whether or not
incorporated) that was, is or hereafter may become, a member of a group of which
the Company is a member and which is treated as a single employer under section
414 of the Code.

          "Multi-employer Plan" means a multi-employer plan as defined in
Section 4001(a)(3) of ERISA to which the Company or any ERISA Affiliate (other
than one considered an ERISA Affiliate only pursuant to subsection (m) or (o) of
Section 414 of the Code) is making or accruing an obligation to make
contributions, or has within any of the preceding six plan years made or accrued
an obligation to make contributions.

          "PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA or any successor thereto.

          "Pension Plan" means any pension plan (other than a Multi-employer
Plan) subject to the provision of Title IV of ERISA or Section 412 of the Code
that is maintained for employees of the Company or any of its Subsidiaries, or
any ERISA Affiliate.

          "Plan" means any bonus, incentive compensation, deferred compensation,
pension, profit sharing, retirement, stock purchase, stock option, stock
ownership, stock appreciation rights, phantom stock, leave of absence, layoff,
vacation, day or dependent care, legal services, cafeteria, life, health,
accident, disability, workmen's compensation or other insurance, severance,
separation or other employee benefit plan, practice, policy or arrangement of
any kind, whether written or oral, or whether for the benefit of a single
individual or more than one individual including, but not limited to, any
"employee benefit plan" within the meaning of Section 3(3) of ERISA, including
any Pension Plan.

          "Reportable Event" means any reportable event as defined in Section
4043(b) of ERISA or the regulations issued thereunder with respect to a Plan.

          "Withdrawal Liability" means liability to a Multi-employer Plan as a
result of a complete or partial withdrawal from such Multi-employer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.

U.        Tax Matters.

                                       12
<PAGE>

1.        The Company has filed all material Tax Returns (as such term is
hereinafter defined) which it is required to file under applicable Laws; all
such Tax Returns are true and accurate in all material respects and have been
prepared in compliance with all applicable Laws; the Company has paid all Taxes
(as such term is hereinafter defined) due and owing by it (whether or not such
Taxes are required to be shown on a Tax Return) and has withheld and paid over
to the appropriate taxing authorities all Taxes which it is required to withhold
from amounts paid or owing to any employee, stockholder, creditor or other third
parties; and since the Balance Sheet Date, the charges, accruals and reserves
for Taxes with respect to the Company (including any provisions for deferred
income taxes) reflected on the books of the Company are adequate to cover any
Tax liabilities of the Company if its current tax year were treated as ending on
the date hereof.

2.        No claim has been made by a taxing authority in a jurisdiction where
the Company does not file tax returns that the Company is or may be subject to
taxation by such jurisdiction.  There are no foreign, federal, state or local
tax audits or administrative or judicial proceedings pending or being conducted
with respect to the Company; no information related to Tax matters has been
requested by any foreign, federal, state or local taxing authority; and, except
as disclosed above, no written notice indicating an intent to open an audit or
other review has been received by the Company from any foreign, federal, state
or local taxing authority.  There are no material unresolved questions or claims
concerning the Company's Tax liability.  The Company (A) has not executed or
entered into a closing agreement pursuant to Section 7121 of the Code or any
predecessor provision thereof or any similar provision of state, local or
foreign law or (B) has not agreed to or is required to make any adjustments
pursuant to Section 481(a) of the Code or any similar provision of state, local
or foreign law by reason of a change in accounting method initiated by the
Company or any of its Subsidiaries or has any knowledge that the IRS has
proposed any such adjustment or change in accounting method, or has any
application pending with any taxing authority requesting permission for any
changes in accounting methods that relate to the business or operations of the
Company.  The Company has not been a United States real property holding
corporation within the meaning of Section 897(c)(2) of the Code during the
applicable period specified in Section 897(c)(1)(A)(ii) of the Code.

3.        The Company has not made an election under Section 341(f) of the Code.
The Company is not liable for the Taxes of another person that is not a
subsidiary of the Company under (A) Treas. Reg. Section 1.1502-6 (or comparable
provisions of state, local or foreign law), (B) as a transferee or successor,
(C) by contract or indemnity or (D) otherwise.  The Company is not a party to
any tax sharing agreement.  The Company has not made any payments, is not
obligated to make payments and is not a party to any agreement that could
obligate it to make any payments that would not be deductible under Section 280G
of the Code.

     As used in this Agreement:

     "IRS" means the United States Internal Revenue Service.

                                       13
<PAGE>

          "Tax" or "Taxes" means federal, state, county, local, foreign, or
other income, gross receipts, ad valorem, franchise, profits, sales or use,
transfer, registration, excise, utility, environmental, communications, real or
personal property, capital stock, license, payroll, wage or other withholding,
employment, social security, severance, stamp, occupation, alternative or add-on
minimum, estimated and other taxes of any kind whatsoever (including, without
limitation, deficiencies, penalties, additions to tax, and interest attributable
thereto) whether disputed or not.

          "Tax Return" means any return, information report or filing with
respect to Taxes, including any schedules attached thereto and including any
amendment thereof.

V.        Property.  Except as set forth on Schedule III.V., each of the Company
                                            ---------------
and the Subsidiaries has good and marketable title to all of its assets and
properties material to the conduct of its business, free and clear of any liens,
pledges, security interests, claims, encumbrances or other restrictions of any
kind (collectively, "Liens").  With respect to any assets or properties it
leases, each of the Company and its Subsidiaries holds a valid and subsisting
leasehold interest therein, free and clear of any Liens, is in compliance, in
all material respects, within the terms of the applicable lease, and enjoys
peaceful and undisturbed possession under such lease.  All of the assets and
properties of the Company and its Subsidiaries that are material to the conduct
of business as presently conducted or as proposed to be conducted by it are in
good operating condition and repair.  The inventory of each of the Company and
its Subsidiaries is in good and marketable condition, does not include any
material quantity of items which are obsolete, damaged or slow moving, and is
salable (or may be leased) in the normal course of business as currently
conducted by it.

W.        Intellectual Property.  The Company owns or possesses adequate and
enforceable rights to use all patents, patent applications, trademarks,
trademark applications, trade names, service marks, copyrights, copyright
applications, licenses, know-how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or
procedures) and other similar rights and proprietary knowledge (collectively,
"Intangibles") necessary for the conduct of its business as now being conducted
including, but not limited to, those described on Schedule III.W.  Except as set
                                                  ---------------
forth on Schedule III.W., the Company has all right, title and interest in all
         ---------------
of the Intangibles, free and clear of any and all Liens.  The Company is not
infringing upon or in conflict with any right of any other person with respect
to any Intangibles.  Except as disclosed on Schedule III.W., (i) no claims have
                                            ---------------
been asserted by any individual, partnership, corporation, unincorporated
organization or association, limited liability company, trust or other entity
(collectively, a "Person") contesting the validity, enforceability, use or
ownership of any Intangibles, and the Company has no knowledge of any basis for
such claim and (ii) neither the Company nor the Subsidiaries has any knowledge
of infringement or misappropriation of the Intangibles by any third party.

X.        Contracts.  All contracts, agreements, notes, instruments, franchises,
leases, licenses, commitments, arrangements or understandings, written or oral
(collectively, "Contracts") which are material to the business and operations of
the Company and the Subsidiaries are in full force and effect and constitute
legal, valid and binding obligations of the Company and the Subsidiaries and, to
the best knowledge of the Company, the other parties thereto; the Company and
the Subsidiaries and, to the best knowledge of the Company, each other party
thereto, have performed in all material respects all obligations required to be

                                       14
<PAGE>

performed by them under the Contracts, and no material violation or default
exists in respect thereof, nor any event that with notice or lapse of time, or
both, would constitute a default thereof, on the part of the Company and the
Subsidiaries or, to the best knowledge of the Company, any other party thereto;
none of the Contracts is currently being renegotiated; and the validity,
effectiveness and continuation of all Contracts will not be materially adversely
affected by the transactions contemplated by this Agreement.

Y.        Registration Rights.  Except as set forth on Schedule III.Y., no
                                                       ---------------
Person has, and as of the Closing (as such term is hereinafter defined), no
Person shall have, any demand, "piggy-back" or other rights to cause the Company
to file any registration statement under the Securities Act relating to any of
its securities or to participate in any such registration statement.

Z.        Interest.  The timely payment of interest on the Debenture is not
prohibited by the Articles of Incorporation or By-Laws of the Company, in each
case as amended to the date of this Agreement, or any agreement, Contract,
document or other undertaking to which the Company or any of the Subsidiaries is
a party.

AA.       Investment Company Act.  Neither the Company nor any of the
Subsidiaries is an "investment company" within the meaning of the Investment
Company Act of 1940, as amended (the "Investment Company Act"), nor is the
Company nor any of the Subsidiaries directly or indirectly controlled by or
acting on behalf of any Person which is an "investment company" within the
meaning of the Investment Company Act.

BB.       Business Plan.  Any business information of the Company previously
submitted to Buyer in any form, including the projections contained therein, was
prepared by the senior management of the Company in good faith and is based on
assumptions that the Company believes are reasonable.  The Company is not aware
of any fact or condition that could reasonably be expected to result in the
Company not achieving the results described in such business plan.

CC.       Year 2000 Compliance.  The Company has reviewed its products,
business and operations that could be adversely affected by the risk that
computer applications used by the Company and the Subsidiaries may be unable to
recognize, and properly perform date-sensitive functions involving, dates prior
to and after December 31, 1999 (the "Year 2000 Problem").  The Company believes
its internal information and business systems will be able to perform properly
date-sensitive functions for all dates before and after January 1, 2000.  In
addition, the Company has surveyed those vendors, suppliers and other third
parties (collectively, the "Outside Parties") with which the Company or any of
the Subsidiaries do business and whose failure to adequately address the Year
2000 Problem could reasonably be expected to adversely affect the business and
operations of the Company or any of the Subsidiaries.  Based upon the
aforementioned internal review and surveys of the Outside Parties as of the date
of this Agreement, the Year 2000 Problem has not resulted in, and is not
reasonably expected to have, a Material Adverse Effect.

DD.       Internal Controls and Procedures.  The Company maintains accurate
books and records and internal accounting controls that provide reasonable
assurance that (i) all transactions to which the Company or each of the
Subsidiaries is a party or by which its

                                       15
<PAGE>

properties are bound are executed with management's authorization; (ii) the
reported accountability of the Company's and the Subsidiaries' assets is
compared with existing assets at regular intervals; (iii) access to the
Company's and the Subsidiaries' assets is permitted only in accordance with
management's authorization and (iv) all transactions to which any of the Company
and the Subsidiaries is a party or by which its properties are bound are
recorded as necessary to permit preparation of the financial statements of the
Company in accordance with GAAP.

EE.        Payments and Contributions.  Neither the Company nor any of its
Subsidiaries nor any of their respective directors, officers or, to their
respective knowledge, other employees has (i) used any company funds for any
unlawful contribution, endorsement, gift, entertainment or other unlawful
expense relating to political activity; (ii) made any direct or indirect
unlawful payment of company funds to any foreign or domestic government official
or employee; (iii) violated or is in violation of any provision of the United
States Foreign Corrupt Practices Act of 1977, as amended, or (iv) made any
bribe, rebate, payoff, influence payment, kickback or other similar payment to
any person with respect to Company matters.

FF.        No Misrepresentation.  No representation or warranty of the Company
contained in this Agreement or any of the other Documents, any schedule, annex
or exhibit hereto or thereto or any agreement, instrument or certificate
furnished by the Company to Buyer pursuant to this Agreement contains any untrue
statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading.

GG.        Finder's Fee.  There is no finder's fee, brokerage commission or like
payment in connection with the transactions contemplated by this Agreement for
which Buyer is liable or responsible.

IV.        CERTAIN COVENANTS AND ACKNOWLEDGMENTS

A.         Restrictive Legend. Buyer acknowledges and agrees that, upon issuance
pursuant to this Agreement, the Securities (including any Interest Shares,
Conversion Shares or the Warrant Shares) shall have endorsed thereon a legend in
substantially the following form (and a stop-transfer order may be placed
against transfer of the Interest Shares, the Warrant Shares and the Conversion
Shares until such legend has been removed):

        "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
        ACT"), OR THE SECURITIES LAWS OF ANY STATE, AND ARE BEING
        OFFERED AND SOLD PURSUANT TO AN EXEMPTION FROM THE
        REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND SUCH
        LAWS. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED
        EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
        UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
        EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
        SECURITIES ACT OR SUCH OTHER LAWS."

                                       16
<PAGE>

B.        Filings.  The Company shall make all necessary Commission Filings and
"blue sky" filings required to be made by the Company in connection with the
sale of the Securities to Buyer as required by all applicable Laws, and shall
provide a copy thereof to Buyer promptly after such filing.

C.        Reporting Status.  So long as Buyer beneficially owns any of the
Securities, the Company shall timely file all reports required to be filed by it
with the Commission pursuant to Section 13 or 15(d) of the Exchange Act.

D.        Use of Proceeds.  The Company shall use the proceeds from the sale of
the Securities (net of amounts paid by the Company for Buyer's out-of-pocket
costs and expenses, whether or not accounted for or incurred in connection with
the transactions contemplated by this Agreement (including the fees and
disbursements of Buyer's legal counsel), and finder's fees in connection with
such sale) solely for general corporate and working capital purposes.

E.        Listing.  Except to the extent the Company lists its Common Stock on
The New York Stock Exchange, The American Stock Exchange or The Nasdaq Stock
Market, the Company shall use its best efforts to maintain its listing of the
Common Stock on OTCBB.  If the Common Stock is delisted from OTCBB, the Company
will use its best efforts to list the Common Stock on the most liquid national
securities exchange or quotation system that the Common Stock is qualified to be
listed on.

F.        Reserved Conversion Shares.  The Company at all times from and after
the date hereof shall have such number of shares of Common Stock duly and
validly authorized and reserved for issuance as shall be sufficient for the
conversion in full of, and the payment of interest on, the Debenture and the
exercise in full of the Warrant.

G.        Right of First Refusal.  If, during the period commencing on the date
hereof and ending three years after the Closing Date (the "Right of First
Refusal Period"), the Company should propose (the "Proposal") to issue debt or
equity securities convertible into Common Stock at one or more floating,
variable or otherwise adjustable (including, without limitation, price reset
provisions) conversion or exercise prices (each a "Right of First Refusal
Security" and collectively, the "Right of First Refusal Securities"), then, in
each case, the Company shall be obligated to first offer such Right of First
Refusal Securities to Buyer on the terms set forth in the Proposal (the "Offer")
and Buyer shall have the right, but not the obligation, to accept the Offer on
such terms.  The Company shall provide written notice to Buyer of any Proposal,
setting forth in full the terms and conditions thereof, and Buyer shall then
have five (5) business days to accept or reject the Offer in writing.  If the
Company issues any Right of First Refusal Securities during the Right of First
Refusal Period but fails to: (i) notify Buyer of the Proposal, (ii) offer Buyer
the opportunity to complete the transaction as set forth in the Proposal or
(iii) enter into and consummate an agreement to issue such Right of First
Refusal Securities to Buyer on the terms and conditions set forth in the
Proposal, after Buyer has accepted the Offer, then the Company shall pay to
Buyer, as liquidated damages, an amount equal to ten percent (10%) of the amount
paid to the Company for such Right of First Refusal Securities.  The foregoing
Right of First Refusal is and shall be senior in right to any other right of
first refusal issued by the Company to any other Person.

                                       17
<PAGE>

H.        Information.  Each of the parties hereto acknowledges and agrees that
Buyer shall not be provided with, nor be given access to, any material non-
public information relating to the Company or any of the Subsidiaries.

I.        Exemption from Investment Company Act.  The Company shall conduct its
business, and shall cause the Subsidiaries to conduct their businesses, in such
a manner that neither the Company nor any Subsidiary shall become an "investment
company" within the meaning of the Investment Company Act.

J.        Accounting and Reserves.  The Company shall maintain a standard and
uniform system of accounting and shall keep proper books and records and
accounts in which full, true, and correct entries shall be made of its
transactions, all in accordance with GAAP applied on consistent basis through
all periods, and shall set aside on such books for each fiscal year all such
reserves for depreciation, obsolescence, amortization, bad debts and other
purposes in connection with its operations as are required by such principles so
applied.

K.        Transactions with Affiliates.   Neither the Company nor any of its
Subsidiaries shall, directly or indirectly, enter into any transaction or
agreement with any stockholder, officer, director or Affiliate of the Company or
family member of any officer, director or Affiliate of the Company, unless the
transaction or agreement is (i) reviewed and approved by a majority of
Disinterested Directors (as such term is hereinafter defined) and (ii) on terms
no less favorable to the Company or the applicable Subsidiary than those
obtainable from a nonaffiliated person.  A "Disinterested Director" shall mean a
director of the Company who is not and has not been an officer or employee of
the Company and who is not a member of the family of, controlled by or under
common control with, any such officer or employee.

L.        [Intentionally omitted.]

M.        Certain Restrictions.  So long as the Debenture is outstanding, no
dividends shall be declared or paid or set apart for payment nor shall any other
distribution be declared or made upon any capital stock of the Company, nor
shall any capital stock of the Company be redeemed, purchased or otherwise
acquired (other than a redemption, purchase or other acquisition of shares of
Common Stock made for purposes of an employee incentive or benefit plan
(including a stock option plan) of the Company or any Subsidiary or pursuant to
the Put and Call Agreements listed on Schedule III.A.I. to which family members
                                      -----------------
and relatives of Robert C. Silzer are a party), for any consideration by the
Company, directly or indirectly, nor shall any moneys be paid to or made
available for a sinking fund for the redemption of any shares of any such stock.

N.        Transfer Agent.  If requested by Buyer, the Company shall replace the
then Transfer Agent for the Common Stock with a Transfer Agent designated by
Buyer.

V.        TRANSFER AGENT INSTRUCTIONS

A.        The Company undertakes and agrees that no instruction other than the
instructions referred to in this Article V and customary stop transfer
instructions prior to the registration and sale of the Common Stock pursuant to
an effective Securities Act registration

                                       18
<PAGE>

statement shall be given to its transfer agent for the Common Stock and that the
Conversion Shares, the Interest Shares and the Warrant Shares shall otherwise be
freely transferable on the books and records of the Company as and to the extent
provided in this Agreement, the Registration Rights Agreement and applicable
law. Nothing contained in this Section V.A. shall affect in any way Buyer's
obligations and agreement to comply with all applicable securities laws upon
resale of such Common Stock. If, at any time, Buyer provides the Company with an
opinion of counsel reasonably satisfactory to the Company that registration of
the resale by Buyer of such Common Stock is not required under the Securities
Act and that the removal of restrictive legends is permitted under applicable
law, the Company shall permit the transfer of such Common Stock and promptly
instruct the Company's transfer agent to issue one or more certificates for
Common Stock without any restrictive legends endorsed thereon.

B.        Buyer shall have the right to convert the Debenture by telecopying an
executed and completed Conversion Notice (as such term is defined in the
Debenture) to the Company.  Each date on which a Conversion Notice is telecopied
to and received by the Company in accordance with the provisions hereof shall be
deemed a Conversion Date (as such term is defined in the Debenture).  The
Company shall transmit the certificates evidencing the shares of Common Stock
issuable upon conversion of the Debenture (together with a new debenture, if
any, representing the principal amount of the Debenture not being so converted)
to Buyer via express courier, by electronic transfer or otherwise, within three
(3) business days after receipt by the Company of the Conversion Notice  (the
"Delivery Date").  Within thirty (30) days after Buyer delivers the Conversion
Notice to the Company, Buyer shall deliver to the Company the Debenture being
converted.

C.        Buyer shall have the right to purchase shares of Common Stock pursuant
to exercise of the Warrant in accordance with its applicable terms.  The last
date that the Company may deliver shares of Common Stock issuable upon any
exercise of Warrant is hereinafter referred to as the "Warrant Delivery Date."

D.        The Company understands that a delay in the issuance of the shares of
Common Stock issuable in lieu of cash interest on the Debenture or upon the
conversion of the Debenture or exercise of the Warrant beyond the applicable
Interest Payment Due Date (as such term is defined in the Debenture), Delivery
Date or Warrant Delivery Date could result in economic loss to Buyer.  As
compensation to Buyer for such loss (and not as a penalty), the Company agrees
to pay to Buyer for late issuance of Common Stock issuable in lieu of cash
interest on the Debenture or upon conversion of the Debenture or exercise of the
Warrant in accordance with the following schedule (where "No. Business Days" is
defined as the number of business days beyond three (3) days from the Interest
Payment Due Date, the Delivery Date or the Warrant Delivery Date, as
applicable):

                                   Compensation For Each 50 Shares of Common
                                          Stock Issuable In Payment of
                                        Interest on or Conversion of the
                                         Debenture or Upon Exercise of
                                           Warrant Not Issued Timely
No. Business Days

                     1                              $ 2.50

                                       19
<PAGE>

                     2                                5.00

                     3                                7.50

                     4                               10.00

                     5                               12.50

                     6                               15.00

                     7                               17.50

                     8                               20.00

                     9                               22.50

                     10                              25.00

                 more than 10                 $25.00 + $10.00 for each business
                                              day late beyond 10 days

The Company shall pay to Buyer the compensation described above by the transfer
of immediately available funds upon Buyer's demand.  Nothing herein shall limit
Buyer's right to pursue actual damages for the Company's failure to issue and
deliver Common Stock to Buyer.  In addition to any other remedies which may be
available to Buyer, in the event the Company fails for any reason to deliver
such shares of Common Stock within three (3) business days after the relevant
Interest Payment Due Date, Delivery Date or Warrant Delivery Date, as
applicable, Buyer shall be entitled to rescind the relevant Conversion Notice or
exercise of Warrant by delivering a notice to such effect to the Company
whereupon the Company and Buyer shall each be restored to their respective
original positions immediately prior to delivery of such Conversion Notice or
exercise on delivery.

VI.       DELIVERY INSTRUCTIONS

     The Securities shall be delivered by the Company to the Escrow Agent
pursuant to Section I.B. hereof on a "delivery-against-payment basis" at the
Closing.

VII.      CLOSING DATE

     The date and time (the "Closing Date") of the issuance and sale of the
Debenture and the Warrant (the "Closing") shall be the date hereof or such other
date as shall be mutually agreed upon in writing.  The issuance and sale of the
Debenture and the Warrant shall occur on the Closing Date at the offices of the
Escrow Agent.  Notwithstanding anything to the contrary contained herein, the
Escrow Agent shall not be authorized to release to the Company the Purchase
Price or to Buyer the certificate(s) (I/N/O Buyer or I/N/O Buyer's nominee)
evidencing the Debenture and the Warrant unless the conditions set forth in
Sections VIII.C. and IX.G. have been satisfied.

VIII.     CONDITIONS TO THE COMPANY'S OBLIGATIONS

                                       20
<PAGE>

     Buyer understands that the Company's obligation to sell the Debenture and
the Warrant on the Closing Date to Buyer pursuant to this Agreement is
conditioned upon:

A.        Delivery by Buyer to the Escrow Agent of the Purchase Price;

B.        The accuracy on the Closing Date of the representations and warranties
of Buyer contained in this Agreement as if made on the Closing Date (except for
representations and warranties which, by their express terms, speak as of and
relate to a specified date, in which case such accuracy shall be measured as of
such specified date) and the performance by Buyer in all material respects on or
before the Closing Date of all covenants and agreements of Buyer required to be
performed by it pursuant to this Agreement on or before the Closing Date and

C.        There shall not be in effect any Law or order, ruling, judgment or
writ of any court or public or governmental authority restraining, enjoining or
otherwise prohibiting any of the transactions contemplated by this Agreement.

IX.       CONDITIONS TO BUYER'S OBLIGATIONS

     The Company understands that Buyer's obligation to purchase the Securities
on the Closing Date pursuant to this Agreement is conditioned upon:

A.        Delivery by the Company to the Escrow Agent of the Debenture and the
Warrant (I/N/O Buyer or I/N/O Buyer's nominee);

B.        The accuracy on the Closing Date of the representations and warranties
of the Company contained in this Agreement as if made on the Closing Date
(except for representations and warranties which, by their express terms, speak
as of and relate to a specified date, in which case such accuracy shall be
measured as of such specified date) and the performance by the Company in all
respects on or before the Closing Date of all covenants and agreements of the
Company required to be performed by it pursuant to this Agreement on or before
the Closing Date, all of which shall be confined to Buyer by delivery of the
certificate of the chief executive officer of the Company to that effect;

C.        Buyer having received an opinion of counsel for the Company, dated the
Closing Date, in form, scope and substance reasonably satisfactory to Buyer as
to the matters set forth in Annex A;
                            -------

D.        There not having occurred (i) any general suspension of trading in, or
limitation on prices listed for, the Common Stock on the OTCBB, (ii) the
declaration of a banking moratorium or any suspension of payments in respect of
banks in the United States, (iii) the commencement of a war, armed hostilities
or other international or national calamity directly or indirectly involving the
United States or any of its territories, protectorates or possessions or (iv) in
the case of the foregoing existing at the date of this Agreement, a material
acceleration or worsening thereof;

E.        There not having occurred any event or development, and there being in
existence no condition, having or which reasonably and foreseeably could have a
Material Adverse Effect;

                                       21
<PAGE>

F.        The Company shall have delivered to Buyer (as provided in the Escrow
Instructions) reimbursement of Buyer's reasonable out-of-pocket costs and
expenses, whether or not accounted for or incurred in connection with the
transactions contemplated by this Agreement (including the fees and
disbursements of Buyer's legal counsel);

G.        There shall not be in effect any Law, order, ruling, judgment or writ
of any court or public or governmental authority restraining, enjoining or
otherwise prohibiting any of the transactions contemplated by this Agreement;

H.        Delivery by the Company of irrevocable instructions to the Company's
transfer agent to reserve one million one hundred thousand (1,100,000) shares of
Common Stock for issuance of the Conversion Shares, the Interest Shares and the
Warrant Shares;

I.        The Company shall have obtained all consents, approvals or waivers
from governmental authorities and third persons necessary for the execution,
delivery and performance of the Documents and the transactions contemplated
thereby, all without material cost to the Company and

J.        Delivery by Robert C. Silzer of (i) a pledge agreement, in form and
substance satisfactory to Buyer, pursuant to which Mr. Silzer pledges and
otherwise grants to Buyer a security interest in all of his right, title and
interest in certain securities (the "Pledge Shares") beneficially owned solely
by Mr. Silzer which are exchangeable for one million (1,000,000) shares of
Common Stock in the aggregate and (ii) the certificate(s) representing the
Pledge Shares together with duly executed stock powers other instruments of
transfer in form and substance satisfactory to Buyer.

K.        Buyer shall have received such additional documents, certificates,
payment, assignments, transfers and other delivers as it or its legal counsel
may reasonably request and as are customary to effect a closing of the matters
herein contemplated.

X.        TERMINATION

A.        Termination by Mutual Written Consent. This Agreement may be
terminated and the transactions contemplated hereby may be abandoned, for any
reason and at any time prior to the Closing Date, by the mutual written consent
of the Company and Buyer.

B.        Termination by the Company or Buyer. This Agreement may be terminated
and the transactions contemplated hereby may be abandoned by action of the
Company or Buyer if (i) the Closing shall not have occurred at or prior to 5:00
p.m., New York City time, on September 13, 2000 (the "Latest Closing Date");
provided, however, that the right to terminate this Agreement pursuant to this
--------  -------
Section X.B. shall not be available to that party whose failure to fulfill any
of its obligations under this Agreement has been the cause of or has resulted in
the failure of the Closing to occur at or before such time and date; provided,
                                                                     --------
further, however, that if the Closing shall not have occurred on or prior to the
-------  -------
Latest Closing Date, the Closing may only occur after the Latest Closing Date
with the written consent of Buyer.

C.        Termination by Buyer. This Agreement may be terminated and the
transactions contemplated hereby may be abandoned by Buyer at any time prior to
the Closing Date, if (1) the

                                       22
<PAGE>

Company shall have failed to comply with any of its covenants or agreements
contained in this Agreement, (ii) there shall have been a breach by the Company
of any representation or warranty made by it in this Agreement, (iii) there
shall have occurred any event or development, or there shall be in existence any
condition, having or reasonably likely to have a Material Adverse Effect or (iv)
the Company shall have failed to satisfy the conditions provided in Article IX.

D.        Termination by the Company. This Agreement may be terminated and the
transactions contemplated hereby may be abandoned by the Company at any time
prior to the Closing Date, if (i) Buyer shall have failed to comply with any of
its covenants or agreements contained in this Agreement or (ii) there shall have
been a breach by Buyer of any representation or warranty made by it in this
Agreement.

E.        Effect of Termination. In the event of the termination of this
Agreement pursuant to this Article X, this Agreement shall thereafter become
void and have no effect, and neither party hereto shall have any liability or
obligation to the other party hereto in respect of this Agreement, except that
the provisions of Article XI, this Section X.E and Section X.F shall survive any
such termination; provided, however, that neither party shall be released from
                  --------  -------
any liability hereunder if this Agreement is terminated and the transactions
contemplated hereby abandoned by reason of (i) willful failure of such party to
perform its obligations hereunder or (ii) any misrepresentation made by such
party of any matter set forth herein.

F.        Fees and Expenses of Termination. If this Agreement is terminated for
any reason, the Company shall promptly reimburse Buyer for all of Buyer's
reasonable out-of-pocket costs and expenses incurred in connection with the
transactions contemplated by this Agreement and the other Documents (including,
without limitation, the fees and disbursements of Buyer's legal counsel).

XI.       SURVIVAL; INDEMNIFICATION

A.        The representations, warranties and covenants made by each of the
Company and Buyer in this Agreement, the annexes, schedules and exhibits hereto
and in each instrument, agreement and certificate entered into and delivered by
them pursuant to this Agreement shall survive the Closing and the consummation
of the transactions contemplated hereby. In the event of a breach or violation
of any of such representations, warranties or covenants, the party to whom such
representations, warranties or covenants have been made shall have all rights
and remedies for such breach or violation available to it under the provisions
of this Agreement or otherwise, whether at law or in equity, irrespective of any
investigation made by or on behalf of such party on or prior to the Closing
Date.

B.        The Company hereby agrees to indemnify and hold harmless Buyer, its
affiliates and their respective officers, directors, partners and members
(collectively, the "Buyer Indemnitees") from and against any and all losses,
claims, damages, judgments, penalties, liabilities and deficiencies
(collectively, "Losses") and agrees to reimburse Buyer Indemnitees for all out
of-pocket expenses (including the fees and expenses of legal counsel), in each
case promptly as incurred by Buyer Indemnitees and to the extent arising out of
or in connection with:

     1.        any misrepresentation, omission of fact or breach of any of the
     Company's representations or warranties contained in this Agreement or the
     other Documents, or the

                                       23
<PAGE>

     annexes, schedules or exhibits hereto or thereto or any instrument,
     agreement or certificate entered into or delivered by the Company pursuant
     to this Agreement or the other Documents;

     2.        any failure by the Company to perform any of its covenants,
     agreements, undertakings or obligations set forth in this Agreement or the
     other Documents or any instrument, certificate or agreement entered into or
     delivered by the Company pursuant to this Agreement or the other Documents;

     3.        the purchase of the Debenture and the Warrant, the conversion of
     the Debenture, the payment of interest on the Debenture, the exercise of
     the Warrant, the consummation of the transactions contemplated by this
     Agreement and the other Documents, the use of any of the proceeds of the
     Purchase Price by the Company, the purchase or ownership of any or all of
     the Securities, the performance by the parties hereto of their respective
     obligations hereunder and under the Documents or any claim, litigation,
     investigation, proceedings or governmental action relating to any of the
     foregoing, whether or not Buyer is a party thereto or

     4.        resales of the Common Shares by Buyer in the manner and as
     contemplated by this Agreement and the Registration Rights Agreement.

C.        Buyer hereby agrees to indemnify and hold harmless the Company, its
Affiliates and their respective officers, directors, partners and members
(collectively, the "Company Indemnitees") from and against any and all Losses,
and agrees to reimburse the Company Indemnitees for all out-of-pocket expenses
(including the fees and expenses of legal counsel), in each case promptly as
incurred by the Company Indemnitees and to the extent arising out of or in
connection with:

     1.        any misrepresentation, omission of fact or breach of any of
     Buyer's representations or warranties contained in this Agreement or the
     other Documents, or the annexes, schedules or exhibits hereto or thereto or
     any instrument, agreement or certificate entered into or delivered by Buyer
     pursuant to this Agreement or the other Documents or

     2.        any failure by Buyer to perform in any material respect any of
     its covenants, agreements, undertakings or obligations set forth in this
     Agreement or the other Documents or any instrument, certificate or
     agreement entered into or delivered by Buyer pursuant to this Agreement or
     the other Documents.

D.        Promptly after receipt by either party hereto seeking indemnification
pursuant to this Article XI (an "Indemnified Party") of written notice of any
investigation, claim, proceeding or other action in respect of which
indemnification is being sought (each, a "Claim"), the Indemnified Party
promptly shall notify the party against whom indemnification pursuant to this
Article XI is being sought (the "Indemnifying Party") of the commencement
thereof, but the omission so to notify the Indemnifying Party shall not relieve
it from any liability that it otherwise may have to the Indemnified Party except
to the extent that the Indemnifying Party is materially prejudiced and forfeits
substantive rights or defenses by reason of such failure. In connection with any
Claim as to which both the

                                       24
<PAGE>

Indemnifying Party and the Indemnified Party are parties, the Indemnifying Party
shall be entitled to assume the defense thereof. Notwithstanding the assumption
of the defense of any Claim by the Indemnifying Party, the Indemnified Party
shall have the right to employ separate legal counsel and to participate in the
defense of such Claim, and the Indemnifying Party shall bear the reasonable
fees, out-of-pocket costs and expenses of such separate legal counsel to the
Indemnified Party if (and only if): (x) the Indemnifying Party shall have agreed
to pay such fees, out-of-pocket costs and expenses, (y) the Indemnified Party
and the Indemnifying Party reasonably shall have concluded that representation
of the Indemnified Party and the Indemnifying Party by the same legal counsel
would not be appropriate due to actual or, as reasonably determined by legal
counsel to the Indemnified Party, potentially differing interests between such
parties in the conduct of the defense of such Claim, or if there may be legal
defenses available to the Indemnified Party that are in addition to or disparate
from those available to the Indemnifying Party or (z) the Indemnifying Party
shall have failed to employ legal counsel reasonably satisfactory to the
Indemnified Party within a reasonable period of time after notice of the
commencement of such Claim. If the Indemnified Party employs separate legal
counsel in circumstances other than as described in clauses (x), (y) or (z)
above, the fees, costs and expenses of such legal counsel shall be borne
exclusively by the Indemnified Party. Except as provided above, the Indemnifying
Party shall not, in connection with any Claim in the same jurisdiction, be
liable for the fees and expenses of more than one firm of legal counsel for the
Indemnified Party (together with appropriate local counsel). The Indemnifying
Party shall not, without the prior written consent of the Indemnified Party
(which consent shall not unreasonably be withheld), settle or compromise any
Claim or consent to the entry of any judgment that does not include an
unconditional release of the Indemnified Party from all liabilities with respect
to such Claim or judgment.

E.        In the event one party hereunder should have a claim for
indemnification that does not involve a claim or demand being asserted by a
third party, the Indemnified Party promptly shall deliver notice of such claim
to the Indemnifying Party. If the Indemnified Party disputes the claim, such
dispute shall be resolved by mutual agreement of the Indemnified Party and the
Indemnifying Party or by binding arbitration conducted in accordance with the
procedures and rules of the American Arbitration Association. Judgment upon any
award rendered by any arbitrators may be entered in any court having competent
jurisdiction thereof.

XII.      GOVERNING LAW

     This Agreement shall be governed by and interpreted in accordance with the
laws of the State of New York, without regard to the conflicts of law principles
of such state.

XIII.     SUBMISSION TO JURISDICTION

     Each of the parties hereto consents to the exclusive jurisdiction of the
federal courts whose districts encompass any part of the City of New York or the
state courts of the State of New York sitting in the City of New York in
connection with any dispute arising under this Agreement and the other
Documents.  Each party hereto hereby irrevocably and unconditionally waives, to
the fullest extent it may effectively do so, any defense of an inconvenient
forum or improper venue to the maintenance of such action or

                                       25
<PAGE>

proceeding in such courts by the mailing of copies of such process by registered
or certified mail (return receipt requested), postage prepaid, at its address
specified in Article XIX. Each party hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
XIV.      WAIVER OF JURY TRIAL

     TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE PARTIES HERETO HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ITS RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OTHER DOCUMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE
SUBJECT MATTER OF THIS AGREEMENT AND OTHER DOCUMENTS.  EACH PARTY HERETO (i)
CERTIFIES THAT NEITHER OF THEIR RESPECTIVE REPRESENTATIVES, AGENTS OR ATTORNEYS
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT
OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (ii) ACKNOWLEDGES THAT
IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS HEREIN.

XV.       COUNTERPARTS; EXECUTION

     This Agreement may be executed in two (2) counterparts, each of which when
so executed and delivered shall be an original, but both of which counterparts
shall together constitute one and the same instrument.  A facsimile transmission
of this signed Agreement shall be legal and binding on both parties hereto.

XVI.      HEADINGS

     The headings of this Agreement are for convenience of reference and shall
not form part of, or affect the interpretation of, this Agreement.

XVII.     SEVERABILITY

     In the event any one or more of the provisions contained in this Agreement
or in the other Documents should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein or therein shall not in any way be affected or
impaired thereby.  The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions,
the economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

XVIII.    ENTIRE AGREEMENT; REMEDIES, AMENDMENTS AND WAIVERS

     This Agreement and the Documents constitute the entire agreement between
the parties hereto pertaining to the subject matter hereof and supersede all
prior agreements, understandings, negotiations and discussions, whether oral or
written, of such parties.  No supplement,

                                       26
<PAGE>

modification or waiver of this Agreement shall be binding unless executed in
writing by both parties. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provision hereof
(whether or not similar), nor shall such waiver constitute a continuing waiver
unless otherwise expressly provided.

XIX.      NOTICES

     Except as may be otherwise provided herein, any notice or other
communication or delivery required or permitted hereunder shall be in writing
and shall be delivered personally, or sent by telecopier machine or by a
nationally recognized overnight courier service, and shall be deemed given when
so delivered personally, or by telecopier machine or overnight courier service
as follows:

A.        if to the Company, to:

          Inforetech Wireless Technology Inc.
          Suite 214
          5500 - 152/nd/ Street
          Surrey, British Columbia
          Canada V3S-8E7
          Attention:   Robert C. Silzer
          Telecopier:  604.576.7401
          Telephone:   604.576.7442

          with a copy to:

          Holmes Greenslade
          1880-1066 West Hastings Street
          Vancouver, British Columbia
          Canada V6E 3X1
          Attention:   John W. Greenslade
          Telecopier:  604.688.0426
          Telephone:   604.688.7861

B.        if to Buyer, to:

          The Shaar Fund Ltd.
          c/o Levinson Capital Management, LLC
          Suite 1820
          2 World Trade Center
          New York, New York 10048
          Attention:   Sam Levinson
          Telecopier:  212.432.7771
          Telephone:   212.432.7711

          with a copy to:

          Herrick, Feinstein LLP

                                       27
<PAGE>

          2 Park Avenue
          New York, New York 10016
          Attention:   Irwin A. Kishner
          Telecopier:  212.592.1500
          Telephone:   212.592.1435

C.        if to the Escrow Agent, to:

          Herrick, Feinstein LLP
          2 Park Avenue
          New York, New York 10016
          Attention:   Irwin A. Kishner
          Telecopier:  212.592.1500
          Telephone:   212.592.1435

The Company, Buyer or the Escrow Agent may change the foregoing address by
notice given pursuant to this Article XIX.

XX.       CONFIDENTIALITY

     Each of the Company and Buyer agrees to keep confidential and not to
disclose to or use for the benefit of any third party the terms of this
Agreement or any other information which at any time is communicated by the
other party as being confidential without the prior written approval of the
other party; provided, however, that this provision shall not apply to
             --------  -------
information which, at the time of disclosure, is already part of the public
domain (except by breach of this Agreement) and information which is required to
be disclosed by law (including, without limitation, pursuant to Item 601(b)(10)
of Regulation S-K under the Securities Act and the Exchange Act).

XXI.      ASSIGNMENT

     This Agreement shall not be assignable by either of the parties hereto
prior to the Closing without the prior written consent of the other party, and
any attempted assignment contrary to the provisions hereby shall be null and
void; provided, however, that Buyer may assign its rights and obligations
      --------  -------
hereunder, in whole or in part, to any affiliate of Buyer.

                    [REMAINDER OF PAGE INTENTIONALLY BLANK.
                         NEXT PAGE IS SIGNATURE PAGE.]

                                       28
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly caused this Agreement to
be executed and delivered on the date first above written.

                              Inforetech Wireless Technology Inc.

                              By: ________________________________
                                  Name:
                                  Title:

                              The Shaar Fund Ltd.
                              By: Shaar Advisory Services N.V.

                              By: ________________________________
                                  Name:  Wim Langeveld
                                  Title: Managing Director

                                       29
<PAGE>

                                                                       EXHIBIT A
                                   DEBENTURE

                                       30
<PAGE>

                                                                       EXHIBIT B
                                    WARRANT

                                      -31-
<PAGE>

                                                                       EXHIBIT C
                              ESCROW INSTRUCTIONS

                                      -32-
<PAGE>

                                                                       EXHIBIT D

                         REGISTRATION RIGHTS AGREEMENT

                                      -33-
<PAGE>

                                                               SCHEDULE III.A.l.

                  EXERCISE, CONVERSION OR SUBSCRIPTION PRICES
             OF OPTIONS, WARRANTS, OTHER SECURITIES AND AGREEMENTS

   Type of Security       Exercise, Conversion or     Number of Shares  Expiry
     or Agreement        Subscription Price ($U.S.)   of Common Stock    Date
     ------------        --------------------------   ---------------    ----
         Option               1.00                    1,710,000         02.01.05
         Option               3.00                      150,000         02.01.05
         Option               7.00                      285,000         02.01.05
         Option               5.00                       60,000         07.12.02
         Warrant              2.00                      100,000         04.30.01
         Warrant              2.00                      200,000         05.01.01
         Warrant              2.00                      175,000         06.24.01
         Warrant              2.00                       50,000         07.19.01
         Warrant              2.00                      200,000         09.02.01
         Warrant              2.00                      100,000         10.18.01
         Warrant              2.00                       75,000         11.26.01
         Warrant              2.00                       10,000         11.30.01
         Warrant              2.00                       10,000         12.24.01
         Warrant              2.00                      300,000         12.31.01
         Warrant              2.00                      174,000         01.24.02
         Warrant              2.00                      330,000         01.31.02
         Warrant              4.00                       62,500         01.31.02
   Convertible Debenture      5.00                            *         11.08.00
   Convertible Debenture      1.00                      161,000         11.08.00
   Convertible Debenture      1.00                      136,280         11.08.00
   Convertible Debenture      1.00                           **

_____________________

     /1/ Convertible into 60,000 units, each unit consisting of a share of
Common Stock and a warrant to acquire a share of Common Stock at an exercise
price of $5.00 expiring on May 9, 2002.

                                      -34-
<PAGE>

     Convertible Note                ***        Variable     08.04.03
   Put and Call Agreements           N/A       6,902,030       N/A
   Subscription Agreements          4.50         222,223       N/A
   Consulting Agreements             N/A         170,750       N/A

_____________________

     /2/ Convertible into 100,000 units, each unit consisting of a share of
Common Stock and a warrant to acquire a share of Common Stock at an exercise
price of $2.00 expiring on the second anniversary of the date of its issuance.

     /3/ Conversion price is equal to the lesser of (i) $5.25 and (ii) 75% of
the average closing bid prices of a share of Common Stock on the OTC Bulletin
Board for the three (3) trading days included within the ten (10) trading day
period immediately preceding the date of conversion.

                                      -35-
<PAGE>

                                                               SCHEDULE III.A.3.

                  PREEMPTIVE, SUBSCRIPTION, "CALL," RIGHT OF
                        FIRST REFUSAL OR SIMILAR RIGHTS

     The Put and Call Agreements, Subscription Agreements and Consulting
Agreements set forth on Schedule III.A.1. are hereby incorporated herein by
                        -----------------
reference.

                                      -36-
<PAGE>

                                                               SCHEDULE III.A.4.

                                 SUBSIDIARIES

     Name                                Type of Entity
     ----                                --------------

Inforetech Golf Technology 2000 Inc.     Canadian federal company

     The Company is in the process of forming a Jersey, Channel Island company
("Newco") as a wholly-owned subsidiary of Inforetech Golf Technology 2000 Inc.
Newco will be granted certain international intellectual property rights by
Inforetech Golf Technology 2000 Inc.

                                      -37-
<PAGE>

                                                               SCHEDULE III.A.5.

                                 MINUTES

  Date                        Description
  ----                        -----------

02.01.00              Share exchange from Inforetech 2000 to Inforetech Wireless

07.12.00              Loan to Inforetech 2000 from Boffo Investment Corp. for
                      $200,000 (Cdn.)

06.13.00              Issuance of shares of O'Donnell Sports Consultants Inc.
                      pursuant to a Consulting Agreement with Inforetech 2000

05.10.00              Cameron Truesdell exercise of option to purchase 100,000
                      Class A Voting Common Shares

01.24.00              Allotment and issuance of shares to Silzer family

03.27.00              Verification resolution of Signature Stock Transfer, Inc.
                      being appointed transfer agent for Inforetech Wireless

                                      -38-
<PAGE>

                                                                 SCHEDULE III.C.

                       ISSUANCES AND SALES OF SECURITIES
                            SINCE DECEMBER 31, 1999

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------
             Name                   Number       Type of      Value or nature   Total Class      Issued Capital
                                                 Security     of transaction    A shares
                                                                                issuable on
                                                                                exercise of
                                                                                warrants
-----------------------------------------------------------------------------------------------------------------
<S>                               <C>          <C>           <C>                <C>            <C>
                                                                                               December 31, 1999
                                                                                               6,156,000
                                                                                               Class A
-----------------------------------------------------------------------------------------------------------------

Robert C. Silzer, Sr.               4,470,750  Class B
-----------------------------------------------------------------------------------------------------------------

Madj Silzer                           525,000  Class B
-----------------------------------------------------------------------------------------------------------------

Robert C Silzer, Jr.                  525,000  Class B
-----------------------------------------------------------------------------------------------------------------

Tracy Silzer                          525,000  Class B
-----------------------------------------------------------------------------------------------------------------

Brent Silzer                          525,000  Class B
-----------------------------------------------------------------------------------------------------------------

Larry Silzer                          525,000  Class B
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

Darrell P. Cecil                       16,250  Class A       Consulting                        6,172,250
                                                             Agreement -
                                                             nominal
                                                             consideration
-----------------------------------------------------------------------------------------------------------------

O'Donnell Sports Consultants           13,000  Class A       Consulting                        6,185,250
                                                             Agreement -
                                                             nominal
                                                             consideration
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -39-
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
             Name                   Number       Type of      Value or nature         Total Class      Issued Capital
                                                 Security     of transaction          A shares
                                                                                      issuable on
                                                                                      exercise of
                                                                                      warrants
-----------------------------------------------------------------------------------------------------------------------
<S>                               <C>          <C>           <C>                      <C>              <C>
Jerry Smith                           375,000  Class A       Originally                                 6,560,250
                                                             Transfer from
                                                             Robert C. Silzer
-----------------------------------------------------------------------------------------------------------------------

Gregory Carpenter                      50,000  Class A                $ 50,000               75,000     6,610,250
                                       75,000  Warrant
-----------------------------------------------------------------------------------------------------------------------

Gregory Carpenter                     125,000  Class A                $175,000                          6,735,250
-----------------------------------------------------------------------------------------------------------------------

Cameron Truesdell                     100,000  Class A                $100,000              175,000     6,835,250
                                      100,000  Warrant
-----------------------------------------------------------------------------------------------------------------------

Sphere Solid Waste II, Inc            200,000  Class A                $200,000              375,000     7,035,250
                                      200,000  Warrant
-----------------------------------------------------------------------------------------------------------------------

Dennis Hopkins                         25,000  Class A                $ 25,000              400,000     7,060,250
                                       25,000  Warrant
-----------------------------------------------------------------------------------------------------------------------

The Huey Family Trust                  25,000  Class A                $ 25,000              425,000     7,085,250
                                       25,000  Warrant
-----------------------------------------------------------------------------------------------------------------------

Kelila Family LP                       50,000  Class A                $ 50,000              475,000     7,135,250
                                       50,000  Warrant
-----------------------------------------------------------------------------------------------------------------------

Geoffrey Perr                          25,000  Class A                $ 25,000              500,000     7,160250
                                       25,000  Warrant
-----------------------------------------------------------------------------------------------------------------------

Edward Urquart                         50,000  Class A                $ 50,000              550,000     7,210,250
                                       50,000  Warrant
-----------------------------------------------------------------------------------------------------------------------

Bruce Roskin                           50,000  Class A                $ 50,000              600,000     7,260,250
                                       50,000  Warrant
-----------------------------------------------------------------------------------------------------------------------

James Brown                            10,000  Class A                $ 10,000              610,000     7,270,250
                                       10,000  Warrant                Placement fee
                                                                      Inforetech 2000
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -40-
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------

Name                        Number          Type of         Value or nature        Total Class    Issued Capital
                                            Security        of transaction         A Shares
                                                                                   issuable on
                                                                                   exercise of
                                                                                   warrants
-----------------------------------------------------------------------------------------------------------------
<S>                         <C>             <C>             <C>                    <C>            <C>
 Abacus                     20,000          Class A         $20,000                               7,290,250
 Capital                                                    Loan fee
                                                            Inforetech 2000
-----------------------------------------------------------------------------------------------------------------

 Base Capital               100,000         Class A         $100,000               710,000        7,390,250
                            100,000         Warrant         Loan
                                                            conversion
                                                            Inforetech 2000
-----------------------------------------------------------------------------------------------------------------

 Base Capital               10,000          Class A         $10,000                720,000        7,400,250
                            10,000          Warrant         Loan fee
-----------------------------------------------------------------------------------------------------------------

 Cameron                    100,000         Class A         $100,000                              7,500,250
 Truesdell
-----------------------------------------------------------------------------------------------------------------

 Cameron                    166,667         Class A         $125,000                              7,666,917
 Truesdell
-----------------------------------------------------------------------------------------------------------------

 Vince                      67,666          Class A         $50,000                               7,734,583
 Abalini                                                    Inforetech 2000
-----------------------------------------------------------------------------------------------------------------

 Otto Boffo                 825,000         Class A         $250,000                              8,559,583
                                                            Inforetech 2000
-----------------------------------------------------------------------------------------------------------------

 Bruno                      67,666          Class A         $50,000                               8,627,249
 Bennedet                                                   Inforetech 2000
-----------------------------------------------------------------------------------------------------------------

 Bryan Dear                 150,000         Class A         $45,000                870,000        8,777,249
                            150,000         Warrant         Inforetech 2000
-----------------------------------------------------------------------------------------------------------------

 Jerry Smith                24,000          Class A         $24,000                894,000        8,801,249
                            24,000          Warrants
-----------------------------------------------------------------------------------------------------------------

 SDA List                   133,333         Class A         $99,750                               8,934,582
 Brokers
-----------------------------------------------------------------------------------------------------------------

 TMR                        300,000         Class A         $300,000               1,194,000      9,234,582
 Investments 2              300,000         Warrant         Inforetech 2000
 LLC                                                        Debt conversion
-----------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -41-
<PAGE>

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------

 Name                       Number          Type of         Value or nature        Total Class    Issued Capital
                                            Security        of transaction         A Shares
                                                                                   issuable on
                                                                                   exercise of
                                                                                   warrants
-----------------------------------------------------------------------------------------------------------------
<S>                         <C>             <C>             <C>                    <C>            <C>
 TMR                        230,000         Class A         $230,000               1,624,000      9,464,582
 Investments 1              430,000         Warrant         Inforetech 2000
 LLC                                                        Debt
                                                            Conversion
-----------------------------------------------------------------------------------------------------------------

 Holmes                     100,000         Class A         $100,000               1,724,000      9,564,582
 Greenslade                 100,000         Warrant         Inforetech 2000
                                                            Debt
                                                            Conversion
-----------------------------------------------------------------------------------------------------------------

 Holmes                     62,500          Class A         $125,000               1,786,500      9,627,082
 Greenslade                 62,500          Warrant         Inforetech 2000
                                                            Debt
                                                            Conversion
-----------------------------------------------------------------------------------------------------------------

 Private                    375,000         Class A         $4.00                                 10,002,082
 Placement                  400,000         Class A         $4.13                                 10,402,082
-----------------------------------------------------------------------------------------------------------------

 Placement fee              100,000         Class A         $4.00                                 10,502,082
-----------------------------------------------------------------------------------------------------------------

                            100,000         Class A         $100,000                              10,602,082
                                                            Warrant
                                                            exercise
-----------------------------------------------------------------------------------------------------------------

 Vindemiola                 193,720         Class A         Debt conversion                       10,795,802
-----------------------------------------------------------------------------------------------------------------

 Tracy Silzer               193,720         Class A         Put                                   10,989,522
-----------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------

 Current Total                                                                     1,786,500      10,989,522
 Issued
-----------------------------------------------------------------------------------------------------------------

 Terry                      222,223         Class A         Subscription
 Matthews                                                   Agreement
-----------------------------------------------------------------------------------------------------------------
</TABLE>

Notes:
1.   With the exception of the debt settlement with Holmes Greenslade and the
     subscription agreements, all of the above transactions were provided for in
     the original Share Exchange and Finance Agreement among the Silzer Family,
     Mercer Capital and

                                      -42-
<PAGE>

     Inforetech Wireless. The dollar value was based upon the historic
     agreements in Inforetech 2000.
2.   The table does not include grants of Options that are described in Schedule
                                                                        --------
     III.A.1.
     --------
3.   The shares under the subscription agreement with Terry Mathews have not yet
     been issued.
4.   With the exception of warrants for 62,500 Class A shares @ $4.00 issued to
     Holmes Greenslade, all warrants for Class A shares are exercisable at
     $2.00.
5.   In addition to the above, Inforetech Wireless issued a Convertible Loan
     Agreement: $300,000 at 12% due November 8, 2000. Convertible until due date
     into units at $5.00. Each unit consists of Class A share and warrant to buy
     Class A share until May 9, 2002 at $5.00.

                                      -43-
<PAGE>

                                                                 SCHEDULE III.O.

                          RELATED PARTY TRANSACTIONS

1.   Put and Call Agreements with the Silzer Family.

2.   The Company entered into an Amendment and Assumption Agreement with
     Inforetech Golf Technology 2000 Inc. and RCS Financial Group Inc. pursuant
     to which the Company assumed the liability of Inforetech Golf Technology
     2000 Inc. to RCS Financial Group Inc. and agreed to replace the conversion
     right into Inforetech Golf Technology 2000 Inc. shares with a conversion
     right into shares of Common Stock.  RCS Financial Group Inc. is owned and
     controlled by Robert C. Silzer.

3.   Loan agreements with Robert C. Silzer and Larry Silzer, individually,
     pursuant to which they have individually advanced loans to the Company or
     Inforetech Golf Technology 2000 Inc..

                                      -44-
<PAGE>

                                                                 SCHEDULE III.Q.

                            SECURITIES LAW MATTERS

1.   Augustine Fund, L.P. - $1,000,000 8% Convertible Note

2.   Swordfish Capital Corp. - $300,000 Convertible Note

3.   Jean Michael and Dixie Diane Johnson - $100,000 10% Convertible Note

4.   In addition to the above, Inforetech Golf Technology 2000 Inc. issued
     certain convertible notes during 1999 prior to the merger with the Company.

                                      -45-
<PAGE>

                                                                 SCHEDULE III.T.

                                 ERISA MATTERS

     None.

                                      -46-
<PAGE>

                                                                 SCHEDULE III.V.

                                   PROPERTY

     The Company and Inforetech Golf Technology 2000 Inc. have granted certain
security interests under the Personal Property Security Act of British Columbia,
Canada in respect of the indebtedness described below:

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
REG.                    EXPIRY      SECURED PARTY                        BASE DEBTOR                GENERAL
DATE                    DATE                                                                        COLLATERAL
--------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>          <C>                                  <C>                        <C>
Nov 6/98                Nov 6/03    Bank of Montreal                     Inforetech Golf            All presently owned and
                                    Cloverdale 5711 176A Street          Technology 2000 Inc.       after acquired personal
                                    Surrey, B.C.  V3S 6S6                                           property (other than
                                                                                                    consumer goods).
--------------------------------------------------------------------------------------------------------------------------------
Jan 28/99              Jan 28/03    National Leasing Group Inc.          Inforetech Golf            1-Comdial 816 telephone
                                    1558 Willson Place                   Technology 2000 Inc.       system & tesin of AT&T
                                    Winnipeg, MB  R3T 0Y4                (Ind. Debtor:  Silzer,     system; 1-red oak reception
                                                                         Robert)                    desk, traditional desk,
                                                                                                    credenza & hutch;
                                                                                                    1-traditional arm tilter
                                                                                                    chair, blue; 1-arm chairs,
                                                                                                    blue
--------------------------------------------------------------------------------------------------------------------------------
Feb 10/99              Feb 10/03    National Leasing Group Inc.          Inforetech Golf            1-3 piece star work;
                                    1558 Willson Place                   Technology 2000 Inc.       1-matching hutch; 1-leather
                                    Winnipeg, MB  R3T 0Y4                (Ind. Debtor:  Silzer,     chair; 1-corner unit
                                                                         Robert)                    w/keyboard-gry mat; 1-66"
                                                                                                    bullet top w/gable gry mat;
                                                                                                    1-325 series B/F ped -
                                                                                                    storm grey; 1-global 3 drw
                                                                                                    lateral file blk; 1-2dr
                                                                                                    lateral file cabinet; 2-star
                                                                                                    executive desk 72' x 20',
                                                                                                    72" x 36"
--------------------------------------------------------------------------------------------------------------------------------
Mar 4/99               Mar 4/03     North Shore Credit Union             Inforetech Golf            All debtors present and
                                    1567 Marine Drive                    Technology 2000 Inc.       after acquired computer
                                    West Vancuover, B.C.                                            equipment together with all
                                    V7V 1Y9                                                         attachments, accessories,
                                                                                                    accessions, replacements,
                                                                                                    substitutions, additions
                                                                                                    and improvements thereto
                                                                                                    and all proceeds that are
                                                                                                    goods, intangibles,
                                                                                                    securities, documents of
                                                                                                    title, chattel paper,
                                                                                                    instruments, or money (and
                                                                                                    terms used herein that are
                                                                                                    defined in the Personal
                                                                                                    Property Security Act of
                                                                                                    British Columbia have those
                                                                                                    defined meanings).
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -47-
<PAGE>

<TABLE>
--------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>          <C>                                  <C>                        <C>
Sep 20/99              Sep 20/02    Copelco Capital Ltd.                 Inforetech Golf            1-Pentium II 400 MHZ
                                    P.O. Box 37 Station A                Technology 2000 Inc.       computer; 1-HP Kayak XA6
                                    Mississauga, ON  L5A 2Y9                                        PII 400 Computer c/w V-90
                                                                                                    internal modem; 64MD PC 100
                                                                                                    SD RAM; 1-HP 2100TN Laser
                                                                                                    printers c/w 2/nd/ tray;
                                                                                                    3-tatung 19" monitors;
                                                                                                    3-intel celeron 400MHZ
                                                                                                    computer c/w 128MB PC-100
                                                                                                    SD RAM; 1-acer 56K V-90
                                                                                                    external modem with all
                                                                                                    attachments, accessories
                                                                                                    and proceeds thereof.
--------------------------------------------------------------------------------------------------------------------------------
Oct 18/99              Oct 18/06    Newcourt Financial Ltd.              Inforetech Golf            1-Canon NP6030 photocopier
                                    5035 South Service Road              Technology 2000 Inc.       system SN: NRD29289;
                                    Burlington, ON  L7R 4C8                                         1-Canon NP6025 photocopier
                                                                                                    system SN: NBV11332
                                                                                                    together with all
                                                                                                    attachments, accessories,
                                                                                                    accessions, replacements,
                                                                                                    substitutions, additions
                                                                                                    and improvements thereto
                                                                                                    and all proceeds in any
                                                                                                    form derived directly or
                                                                                                    indirectly from any dealing
                                                                                                    with the collateral.

--------------------------------------------------------------------------------------------------------------------------------
Feb 28/00              Feb 28/03    Dell Financial Services Canada       Inforetech Golf            All dell computer equipment
                                    Limited                              Technology 2000 Inc.       and peripherals wherever
                                    155 Gordon Baker Road, Suite 5                                  located heretofore or
                                    North York, ON  M2H 3N5                                         hereafter leased to debtor
                                                                                                    by secured party pursuant
                                                                                                    to an equipment lease
                                                                                                    together with all
                                                                                                    substitutions, additions,
                                                                                                    accessions and replacements
                                                                                                    thereto and thereof now and
                                                                                                    hereafter installed in,
                                                                                                    affixed to, or used in
                                                                                                    conjunction with such
                                                                                                    equipment and proceeds
                                                                                                    thereof together with all
                                                                                                    rental or instalment
                                                                                                    payments, insurance
                                                                                                    proceeds, other proceeds
                                                                                                    and payments due or to
                                                                                                    become due and arising from
                                                                                                    or relating to such
                                                                                                    equipment.  Proceeds:  all
                                                                                                    present and after-acquired
                                                                                                    personal property
--------------------------------------------------------------------------------------------------------------------------------
Mar 5/00               May 3/03     Copelco Capital Ltd.                 Inforetech Golf            1-FXCBX main cabinet,
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -48-
<PAGE>

<TABLE>
--------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>                                  <C>                        <C>
                                    P.O. Box 37 Station A                Technology 2000 Inc.       FXCPU-1 Central Proc. Unit
                                    Mississauga, ON  L5A 2Y9                                        card FXSRV-1 services card;
                                                                                                    1-FXSW-1 systems software;
                                                                                                    2-FXSDS-16 16 Port digital
                                                                                                    stn cards; FXLDS-16 Port
                                                                                                    analog stn card; 1-FXLDS-16
                                                                                                    Port analog trunk card;
                                                                                                    IB64X impact 64 line
                                                                                                    console 10-8312S impact SCS
                                                                                                    12 line LCD speakerphones;
                                                                                                    1-NTD4H-S04 port SML office
                                                                                                    NT voice processing system
                                                                                                    with all attachments,
                                                                                                    accessories and proceeds
                                                                                                    thereof.
--------------------------------------------------------------------------------------------------------------------------------
May 29/00              May 29/2002  Swordfish Capital Corp.              Inforetech Golf            All present and after
                                    P.O. Box 70, Palm Chambers           Technology                 acquired property.
                                    Road Town, Tortola BVI
--------------------------------------------------------------------------------------------------------------------------------
Jun 5/00               Jun 5/04     Heller Financial Canada Ltd.         Inforetech Golf            All goods supplied before
                                    1075 North Service Rd. W. Suite 27   Technology Inc.            or hereafter by secured
                                    Oakville, ON  L6M 2G2                (Ind. Debtor:  Silzer,     party, all parts and
                                                                         Robert)                    accessories therefore and
                                                                                                    accessions thereto and all
                                                                                                    proceeds thereof.
--------------------------------------------------------------------------------------------------------------------------------
Jul 18/00              Jul 18/01    Boffo Investment Corp.               Inforetech Golf            All moneys, up to an
                                    201 - 4695 East Hastings St.         Technology 2000 Inc.       aggregate of principal and
                                    Burnaby, B.C.  V5C 2K6                                          interest outstanding under
                                                                                                    a loan made by the secured
                                                                                                    party to the debtor, owing
                                                                                                    and payable or hereafter
                                                                                                    owing and payable by the
                                                                                                    Federal Government of
                                                                                                    Canada, including any
                                                                                                    agency thereof, in regard
                                                                                                    to a rebate of moneys that
                                                                                                    were expended by the debtor
                                                                                                    on scientific research and
                                                                                                    development.
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      -49-
<PAGE>

                                                                 SCHEDULE III.W.

                             INTELLECTUAL PROPERTY

     Vindemiola Limited has transferred to Inforetech Golf Technology 2000 Inc.
certain intellectual property rights owned by Vindemiola Limited which are
utilized in the inFOREmer 2000 technology. Vindemiola Limited is entitled to a
royalty on the sale of the handsets utilized for golf and has retained a license
to such intellectual property rights for non-golf applications.

     Optimal Recreation Solutions, LLP and its affiliates hold domestic and
international patents for a "Golf Distance Measuring Systems and Method" which
are currently the subject of a litigation not involving the Company regarding
the validity of such patents. If the validity of the aforesaid patents is
upheld, the Company may be required to become a licensee of Optimal Recreation
Solutions, LLP. In such event, the Company will be able to obtain a license from
Optimal Recreation Solutions, LLP on commercially reasonable terms.

                                      -50-
<PAGE>

                                                                 SCHEDULE III.Y.

                              REGISTRATION RIGHTS

                                     Type of                  Number of Shares
          Name                  Registration Right            of Common Stock
          ----                  ------------------            ---------------

Abacus Capital LLC            "Piggy-back"                       20,000

TMR Investments 1 LLC         "Piggy-back"                      460,000*

Augustine Fund, L.P.          Demand and "Piggy-back"         1,100,000

TMR Investments 1 LLC         "Piggy-back"                      200,000

________________

     /4/  Issuable upon exercise of certain warrants.

                                      -51-
<PAGE>

                                                                         ANNEX A

                                FORM OF OPINION

     1.   The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Nevada, is duly
qualified to do business as a foreign corporation and is in good standing in all
jurisdictions where the Company owns or leases properties or conducts business,
except for jurisdictions in which the failure to so qualify would not have a
Material Adverse Effect, and has all requisite corporate power and authority to
own its properties and conduct its business as described in the Commission
Filings.

     2.   The authorized capital stock of the Company consists of (i)
100,000,000 shares of Common Stock and (ii) 10,000,000 shares of Class B Special
Voting Non-Equity Common Stock, par value $0.001 per share.

     3.   When delivered to you or upon your order against payment of the agreed
consideration therefor in accordance with the provisions of the Documents, the
Securities will be duly authorized and validly issued, fully paid and
nonassessable.

     4.   The Company has the requisite corporate power and authority to enter
into the Documents and to sell and deliver the Securities as described in the
Documents; each of the Documents has been duly and validly authorized by all
necessary corporate action by the Company; each of the Documents has been duly
and validly executed and delivered by and on behalf of the Company, and is a
valid and binding agreement of the Company, enforceable in accordance with its
terms, except as enforceability may be limited by general equitable principles,
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or
other laws affecting creditors rights generally.

     5.   Except as set forth on the Schedules to the Securities Purchase
Agreement, the execution and delivery by the Company of the Documents, the
issuance of the Securities and the consummation by the Company of the other
transactions contemplated thereby do not, and compliance with the provisions of
the Documents will not, conflict with, or result in any violation of, or default
(with or without notice or lapse of time, or both) under, or give rise to a
right of termination, cancellation or acceleration of any obligation or loss of
a material benefit under, or result in the creation of any Lien upon any of the
properties or assets of the Company or any of its Subsidiaries under, or result
in the termination of, or require that any consent be obtained or any notice be
given with respect to, (i) the Articles of Incorporation or By-Laws of the
Company, in each case as amended to the date of the Securities Purchase
Agreement, or the comparable charter or organizational documents of any of its
Subsidiaries, (ii) any loan or credit agreement, note, bond, mortgage,
indenture, lease, contract or other agreement, instrument or permit known to us
and applicable to the Company or any of its Subsidiaries or their respective
properties or assets or (iii) any Law applicable to, or, to the best of our
knowledge, any judgment, decree or order of any court or government body having
jurisdiction over, the Company or any of its Subsidiaries or any of their
respective properties or assets.  To the best of

                                      -52-
<PAGE>

our knowledge, no consent, approval, authorization, order, registration, filing,
qualification, license or permit of or with any court or any public,
governmental or regulatory agency or body having jurisdiction over the Company
or any of its properties or assets is required for the execution, delivery and
performance by the Company of the Documents or the consummation by the Company
of the transactions contemplated thereby.

     6.   When issued, the Debenture and the Warrant shall be duly authorized,
validly issued, fully paid and nonassessable, and free and clear of all
encumbrances and restrictions, except for restrictions on transfer imposed by
applicable securities laws.  The Conversion Shares, Interest Shares and Warrant
Shares issuable upon conversion, payment of interest or exercise, respectively,
of the Debenture and the Warrant, respectively, will be duly authorized, validly
issued, fully paid and nonassessable, and free and clear of all encumbrances and
restrictions, except for restrictions on transfer imposed by applicable
securities laws.

     7.   Based on Buyer's representations contained in the Securities Purchase
Agreement, the offer and sale of the Debenture and the Warrant are exempt from
the registration requirements of the Securities Act.

     8.   To the best of our knowledge, other than as described in the
Commission Filings, there are no outstanding options, warrants or other
securities exercisable or convertible into Common Stock of the Company.

     9.   There is no action, suit, claim, inquiry or investigation pending or,
to the best of our knowledge, threatened by or before any court or public or
governmental authority which, if determined adversely to the Company, would have
a Material Adverse Effect.

     10.  Neither the Company nor any of its Subsidiaries is, or will be after
the consummation of the transactions contemplated by the Securities Purchase
Agreement and the other Documents and the use of the proceeds from the sale of
the Securities, an "investment company" or an entity "controlled" by an
"investment company," as such terms are defined in the Investment Company Act of
1940, as amended.

     11.  The securities, instruments and other documents listed on Schedule 2.1
and Schedule 2.3 to the Pledge Agreement dated as of August 4, 2000 (the "Pledge
                                                                          ------
Agreement") made by Robert C. Silzer to Buyer are the only securities,
---------
instruments and documents required in order to exchange or otherwise convert the
Units (as such term is defined in the Pledge Agreement) covered by the Pledge
Agreement into shares of Common Stock.

                                      -53-

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