Document:

LOAN SALE AGREEMENT

         THIS LOAN SALE AGREEMENT is made and entered into as of the _____ day
of November, 1999, by and between Communications Research, Inc. (the "Buyer")
and Communication Systems Technology, Inc. (the "Seller").

                              W I T N E S S E T H

         WHEREAS, Seller is the owner of and wishes to sell that certain Secured
Promissory Note dated as of December 19, 1997 by and between the Seller and
Optel Communications, Inc. (the "Loan"); and

         WHEREAS Seller attests they are the rightful holder of said Secured
Promissory Note; and

         WHEREAS Buyer and Seller have agreed upon an inventory of assets
pledged, including all physical property, trade names, patents, copyrights and
intellectual property as defined in Attachment 5 attached; and

         WHEREAS, Buyer wishes to buy the Loan; per a revised offer to purchase
Optel Communications Note dated August 2, 1999, to Barbara Perrier-Dreyer,
Senior Vice President, Outreach Technologies, A Division of CSTI, and

         WHEREAS, Seller and Buyer wish to enter into an agreement setting forth
the terms and conditions of the purchase and sale of the Loan;

         NOW, THEREFORE, in consideration of the mutual promises, covenants and
conditions hereinafter set forth and other good and valuable consideration, the
receipt and sufficiency of which are hereby expressly acknowledged, the parties
hereto agree as follows:

                                   ARTICLE 1
                                    GENERAL

         1.1 Definitions. For purposes of this Agreement, the following terms
shall have the meanings indicated below:

         Agreement means this Loan Sale Agreement, including all exhibits
attached hereto and referenced herein and any written amendments hereto.

         Business Day means any day other than a Saturday, Sunday, federal
holiday or any other day on which the Offices of the Seller are closed.

         Closing means the payment of the balance of the Purchase Price by Buyer
and the delivery of the Closing Documents.

         Closing Date means the date on which Buyer pays the balance of the
Purchase Price for the Loan in accordance with this Agreement, as designated in
writing by the Seller or its counsel as provided in Section 2.2 hereof.

         Closing Documents means the documents to be delivered to Buyer by
Seller under the terms of this Agreement at the Closing.

         Collateral means any real or personal property which may secure a Loan.

         Loan means the Loan, including the documentation evidencing the Loan
and rights in any Collateral.

<PAGE>

         Note means the original executed promissory note (or copy thereof
accompanied by a lost note affidavit) evidencing the Loan.

         Obligor means Optel Communications, Inc.

         Principal Office means, as to Buyer and Seller, the business office
designated in or pursuant to Section 8.1 of this Agreement.

         Purchase Price means that amount indicated in Section 2.1 of this
Agreement, as adjusted in accordance with the terms of this Agreement.

                                   ARTICLE 2
                           PURCHASE AND SALE OF LOAN

         2.1 Agreement to Buy and Sell Loan. Seller hereby agrees to sell to
Buyer, and Buyer hereby agrees to buy from Seller, on the Closing Date, all of
Seller's right, title and interest in the Loan for the total Purchase Price of
$150,000.

         2.2 Closing. Provided that Buyer has not terminated this Agreement
pursuant to its rights hereunder, Closing shall occur no later than November 17
1999, unless extended by Seller in writing. The Closing of the purchase and sale
of the Loan shall take place on the Closing Date in escrow at the offices of
Seller's counsel, Piper & Marbury L.L.P., 1200 19th Street, N.W., Washington,
D.C. 20036, or such other place as is agreed upon by Buyer and Seller.

         2.3 Payment of Purchase Price.

              2.3.1 On the Closing Date, Buyer agrees to pay Seller an amount
equal to the Purchase Price. Buyer shall remit payment of the Purchase Price to
Seller on the Closing Date, prior to 2:00 p.m. EST as set forth below.

              2.3.1.1 Fifteen Thousand Dollars ($15,000.00) of the Purchase
Price shall be paid by delivery, by wire transfer, cash or certified funds to
Seller's Principal Office.

              2.3.1.2 One Hundred Thirty-Five Thousand Dollars ($135,000.00) of
the Purchase Price shall be paid by delivery of the Convertible Secured
Promissory Note from the Seller, in the form attached hereto as Exhibit A.

         2.4 Transfer Documentation.

              2.4.1 Upon payment of the balance of the Purchase Price on the
Closing Date in accordance with the terms of Section 2.3, Seller shall execute
and deliver to Buyer at the Closing the Note, each duly endorsed unto Buyer, as
set forth in Section 2.6.3 below. In addition, Seller shall execute and deliver
(a) a general Assignment, which shall be effective to transfer the Loan and any
and all other security agreements, mortgages, judgments, deeds of trust, deeds,
claims and similar documents, which Assignment shall be in the form attached
hereto as Exhibit B and made a part hereof, and (b) financing statements as
Seller, in its reasonable discretion, deems to be necessary or appropriate for
the legal transfer of Seller's right, title and interest in the Loan. Buyer
shall be responsible for the recording of such assignments and for payment of
any costs and recording fees associated with recording such assignments.

              2.4.2 Should any assignments in addition to those delivered
pursuant to Section 2.4.1 above be required by applicable law, Buyer shall
prepare and submit such additional assignments to Seller for execution within
ninety (90) days after the Closing Date. Buyer shall be responsible for the
preparation and filing of, and any costs associated with the preparation of such
additional assignments and for any costs or filing fees associated with the
recording of, such additional assignments. Additionally, any such assignments
shall be without recourse, representation or warranty and in a form acceptable
to Seller's counsel. Seller shall have no obligation to execute any additional
assignment that is not received by Seller within ninety (90) days after the
Closing Date.

                                       2

<PAGE>

              2.4.3 Seller shall endorse the Note purchased hereunder in the
following manner:

              Pay to the order of COMMUNICATIONS RESEARCH, INC., WITHOUT
              RECOURSE, REPRESENTATION OR WARRANTY EXCEPT FOR THOSE EXPLICITLY
              SET FORTH IN THE LOAN SALE AGREEMENT DATED NOVEMBER 17, 1999
              BETWEEN COMMUNICATIONS RESEARCH, INC. AND COMMUNICATION SYSTEMS
              TECHNOLOGY, INC.

              COMMUNICATION SYSTEMS TECHNOLOGY, INC.

              By:
              Name:
              Title:
              Date:

If this form of endorsement does not conform to the requirements of applicable
federal, state or local law, the parties agree to modify the form of endorsement
to conform to such requirements.

              2.5.4 The assignment of the Loan shall be in substantially the
form attached hereto as Exhibit B.

              2.5.5 Financing statement assignments shall be in accordance with
the customary UCC-3 printed form for the applicable jurisdiction.

         2.6 Delivery of Documents. On the Closing Date, Seller shall deliver to
Buyer at Closing the original Note and all assignment instruments necessary to
transfer ownership as provided in Section 2.6. Thereafter, risk of loss with
respect to such documents and instruments shall rest with Buyer.

                                   ARTICLE 3
              REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER

         3.1 Seller's Warranties and Representations. Seller hereby represents
and warrants to Buyer that the following statements are true and correct, as of
the date of this Agreement, and shall be true and correct as of the Closing
Date:

              3.1.1 Seller has not previously sold or assigned the Loan.

              3.1.2 Seller has the corporate authority to transfer the Loan.

         3.2 Seller's Business Records. Seller will warrant at Closing to its
best knowledge, information and belief, based solely on its current business
records and no independent verification with the maker of the applicable Note,
that the actual amount of the principal balance, accrued interest and late
charges due under the applicable Note does not differ in any material respect
from the amount of the principal balance, accrued interest and late charges
shown by the Seller's current business records. If it is determined after
Closing that Seller breached this warranty, Seller shall reimburse Buyer in an
amount equal to the difference between the amount of the principal balance,
accrued interest and late charges shown by Seller's current business records and
the actual amount of the principal balance, accrued interest and late charges
due under the applicable Note.

                                       3

<PAGE>

         3.3 Disclaimer Of Warranties And Representations Not Expressed Herein.

              3.3.1 Except for those expressed in Sections 3.1 and 3.2, no
warranties or representations, express or implied, have been made by Seller or
by anyone acting on its behalf, particularly, but without in any way limiting
the generality of the foregoing, no warranties or representations regarding (i)
the collectability of any loan asset, (ii) the creditworthiness or personal
liability of any Obligor, (iii) the value or existence of any Collateral
securing payment of any loan asset, (iv) any loan asset's freedom from liens and
encumbrances, in whole or in part, (iv) the transferability and enforceability
of the Note, judgments, claims, deeds, and collateral documents supporting any
loan asset, or (v) condition of the underlying collateral including but not
limited to any environmental matter or condition, whether latent or observable.
Except as otherwise provided in Sections 3.1 and 3.2, all assets sold to Buyer
under this agreement are sold and transferred without recourse and "as is, where
is and with all faults". Seller further makes no warranty or representation as
to the nature or content of the Loan as described herein except as otherwise
provided in Sections 3.1 and 3.2. Seller also makes no warranty or
representation with respect to the effect of applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws affecting the rights of creditors
generally.

         3.4 Limitation on Warranties.

              3.4.1 Prior to the Closing Date, Buyer's sole and exclusive
recourse shall be as provided in Section 5.1. After the Closing Date, Buyer
shall have no recourse whatsoever against Seller, except for a breach of any
warranty or representation under Sections 3.1 and 3.2, in which case damages
shall be limited as provided in Section 7.2.

              3.4.2 The recourse provided hereunder against Seller for the
breach of a representation or warranty is intended to run exclusively to Buyer
and its assignee as permitted by Section 8.6, and no subsequent assignee of
Buyer's rights in any of the Loan shall have any right to make a claim against
Seller for such breach.

         3.5 Seller's Covenants to Buyer.

              3.5.1 After the Closing Date, Seller will not continue to service
the Loan (or continue to fulfill its obligations and duties under any servicing
agreement, as the case may be). All payments received by Seller after the
Closing Date with respect to any Asset purchased by Buyer shall belong to Buyer,
and Seller shall promptly deliver all such payments to Buyer's Principal Office
within a reasonable time after their receipt in cash or with any instruments
properly endorsed to Buyer. Notwithstanding the foregoing, prior to the Closing
Date, Seller shall be authorized to continue, in its sole and absolute
discretion, without notice to Buyer, with all actions it deems appropriate in
servicing the Loan. In addition, all collections received on or before Closing
shall be the sole property of Seller, in which case the Purchase Price will be
reduced by an amount equal to the amount of any such collection.

              3.5.2 Seller agrees to respond, on written request by Buyer, to
reasonable inquiries by Buyer with respect to the Loan for a period of ninety
(90) days after the Closing Date. Seller shall have no obligation to respond to
any inquiries by Buyer which are not received within such ninety (90) day
period.

              3.5.3 Each party to this Agreement represents and warrants to the
other that, in connection with the sale and purchase of the Loan hereunder, the
party so representing and warranting has not dealt with any broker, agent or
finder, and there is no commission, charge or other compensation due on account
thereof. Buyer and Seller shall indemnify and hold each other harmless against
and from any inaccuracy in such representation. The rights, obligations,
warranties and representations of the parties hereto under the provisions of
this Section shall survive Closing or any termination of this Agreement before
Closing.

         3.6 Organization; Good Standing. Seller is a corporation duly organized
and validly existing and in good standing under the laws of the State of
Delaware and has all requisite power and authority to conduct its business as
currently conducted.

                                       4

<PAGE>

         3.7 Authority. Seller is duly and legally authorized to enter into this
Agreement and has complied with all laws, rules, regulations, partnership
agreements, charter provisions, articles and bylaws to which it may be subject.
If this Agreement is executed by a representative of Seller, the undersigned
representative of Seller is duly authorized to act on behalf of and to bind
Seller to the terms of this Agreement.

         3.8 Enforceability. This Agreement, when duly executed and delivered,
and all of Seller's obligations hereunder will be the legal, valid and binding
obligations of Seller, enforceable in accordance with the terms of this
Agreement, except as enforcement might be limited by bankruptcy, insolvency,
reorganization or similar laws affecting the enforcement of creditors' rights
generally and by general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

         3.9 Performance. Seller's performance of its duties and obligations of
Seller under this Agreement will not conflict with, result in a breach of or
default under, or be adversely affected by, any agreements, instruments,
decrees, judgments, injunctions, orders, writs, laws, rules or regulations, or
any determination or award of any arbitrator, to which Seller is a party or by
which it or its assets are bound.

                                   ARTICLE 4
               REPRESENTATIONS, WARRANTIES AND COVENANTS OF BUYER

         4.1 Buyer's Representations and Warranties. Buyer hereby represents and
warrants to Seller that the following statements are true and correct, as of the
date of this Agreement, and shall be true and correct as of the Closing Date.

              4.1.1 Decision to Purchase. Buyer has independently reviewed, or
may elect to review before the Closing Date, the Loan, and has made its decision
to buy the Loan based upon its own independent evaluation and has not relied
upon any oral or written information provided by any employee or representative
of Seller. Buyer has not relied on any statements or representations of Seller
other than those specifically contained in this Agreement. Buyer acknowledges
that Seller has not given any investment advice or rendered any opinion as to
whether the purchase of the Loan is prudent. Buyer is aware that the amount
ultimately paid or recovered on account of the Loan may be less than the
consideration paid to Seller by Buyer pursuant to this Agreement.

              4.1.2 Organization; Good Standing. Buyer is a corporation duly
organized and validly existing and in good standing under the laws of the State
of Nevada and has all requisite power and authority to conduct its business as
currently conducted.

              4.1.3 Authority. Buyer is duly and legally authorized to enter
into this Agreement and has complied with all laws, rules, regulations,
partnership agreements, charter provisions, articles and bylaws to which it may
be subject. If this Agreement is executed by a representative of Buyer, the
undersigned representative of Buyer is duly authorized to act on behalf of and
to bind Buyer to the terms of this Agreement.

              4.1.4 Enforceability. This Agreement, when duly executed and
delivered, and all of Buyer's obligations hereunder will be the legal, valid and
binding obligations of Buyer, enforceable in accordance with the terms of this
Agreement, except as enforcement might be limited by bankruptcy, insolvency,
reorganization or similar laws affecting the enforcement of creditors' rights
generally and by general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

              4.1.5 Performance. Buyer's performance of its duties and
obligations of Buyer under this Agreement will not conflict with, result in a
breach of or default under, or be adversely affected by, any agreements,
instruments, decrees, judgments, injunctions, orders, writs, laws, rules or
regulations, or any determination or award of any arbitrator, to which Buyer is
a party or by which it or its assets are bound.

                                       5

<PAGE>

         4.2 Buyer's Covenants to Seller.

              4.2.1 Notification of Obligors. Buyer shall, promptly after the
Closing Date with respect to the Loan purchased under this Agreement, (or Seller
may on its own at its sole discretion) notify the Obligor of Buyer's purchase of
the Loan, and direct that all payments on and communications regarding the Loan
be sent to Buyer's Principal Office after the Closing Date. Buyer understands
that, except to the extent required by law, Seller is not required hereunder to
send any notification of the assignment of the Loan to any Obligor.

              4.2.2 Use of Seller's Name. Buyer will not, without the express
written consent of Seller, institute any legal action in the name of Seller or
any affiliate thereof; nor shall Buyer through misrepresentation or
nondisclosure, mislead or conceal from any person the identity of the owner of
the Loan purchased under this Agreement; nor shall Buyer use or refer to Seller
or any affiliate thereof, or any name derived therefrom or confusingly similar
therewith, to promote Buyer's sale, collection or management of the Loan
purchased under this Agreement. Buyer acknowledges that there is no adequate
remedy at law for violation of this provision and consents to the entry of an
order by a court of competent jurisdiction enjoining any violation or threatened
violation of this provision.

              4.2.3 Access to Documents. Before the Closing Date, a
representative of Seller shall deliver to Buyer or its duly authorized agents
copies of all documents concerning the Loan. These documents shall be included
as attachments to this Loan Sale Agreement.

              4.2.4 Collection Practices. Buyer agrees not to violate any law
relating to unfair collection practices in connection with any of the Loan
purchased by Buyer hereunder. Buyer further agrees to indemnify Seller and hold
Seller harmless from and against any and all claims, demands, losses, damages,
penalties, fines, forfeitures, judgments, legal fees and other costs, fees and
expenses at any time incurred by Seller as a result of (i) Buyer's breach of the
aforesaid agreement or (ii) any acts or omissions of Buyer resulting in any
claim, demand or assertion that Seller, subsequent to the Closing Date, was in
any way involved in or had in any way authorized any unlawful collection
practices in connection with any of the Loan. Each party agrees to notify the
other within ten (10) days of receiving notice or knowledge of any such claim,
demand or assertion.

              4.2.5 Compliance with Terms. Buyer agrees to abide by and be bound
by all of the terms and conditions of the Note and other agreements related to
the Loan purchased hereunder to the extent that such terms and conditions
continue to bind the holder of the Note and other agreements related to the
Loan.

              4.2.6 Waiver of Notice of Assignment of Proof of Claim. Seller
waives the right to receive any notice from Buyer with respect to its assignment
under this Agreement of any proof of claim under the United States Bankruptcy
Code.

                                   ARTICLE 5
                               WITHDRAWAL OF LOAN

         5.1 Withdrawal of Loan. If, prior to the Closing Date, either Buyer or
Seller discovers the breach of any of the representations and warranties set
forth in Article 3 of this Agreement as to the Loan or any other matter which in
Seller's sole and absolute discretion merits the withdrawal of such Loan from
this sale, the party making the discovery will promptly but in no event after
the Closing Date give notice of such discovery to the other party, along with a
description of the breach. Seller shall be allowed 90 days to cure the breach,
and if it is impossible to cure such breach or Seller chooses not to cure or
correct the breach, prior to the Closing Date, then this Agreement shall
terminate and become null and void.

                                       6

<PAGE>

                                   ARTICLE 6
                                    RELEASE

         6.1 Release of Seller. Buyer hereby releases and forever discharges
Seller, its agents, servants, directors, officers, employees, successors,
assigns and affiliates (all such persons being collectively referred to as the
"Related Persons"), of and from any and all causes of action, claims, demands
and remedies of whatsoever kind and nature that Buyer has or may in the future
have against Seller or any Related Persons, and in any manner on account of,
arising out of or related to the Loan purchased hereunder except for claims or
causes of action arising by reason of Seller's breach of this Agreement.

         6.2 Release of Buyer. Seller hereby releases and forever discharges
Buyer, and its Related Persons, of and from any and all causes of action,
claims, demands and remedies of whatsoever kind and nature that Seller has or
may in the future have against Buyer or any Related Persons, and in any manner
on account of, arising out of or related to the Loan purchased hereunder except
for claims or causes of action arising by reason of Buyer's breach of this
Agreement.

                                   ARTICLE 7
                                SELLER'S BREACH

         7.1 Seller's Breach Before Closing. If Seller breaches this Agreement,
and the breach is discovered prior to Closing, Buyer's sole remedies are those
described in Sections 3.4 and 5.1 of this Agreement.

         7.2 Seller's Breach After Closing. Except as to a breach of any
warranty or representation under Sections 3.1 and 3.2, if Seller breaches this
Agreement, and such breach is discovered after Closing, Buyer shall have no
recourse against Seller. Buyer has factored this risk into its decision to
purchase. If it is determined after Closing that Seller breached any warranty or
representation under Sections 3.1 and 3.2. Seller will reimburse Buyer in an
amount equal to Buyer's actual and verifiable damages resulting from such
breach. The remedies set forth in this Section 7.2 shall be Buyer's sole and
exclusive remedies with respect to a breach of such warranties or
representations.

                                   ARTICLE 8
                            MISCELLANEOUS PROVISIONS

         8.1 Notices. Any notice, request, demand or other communication
required or permitted under this Agreement shall be given in writing and shall
be delivered or sent by certified mail, return receipt requested in a prepaid
envelope, by overnight mail or courier, or by facsimile transmission, to the
addresses set forth below or such other addresses as such party shall hereafter
specify in accordance with this Section:

If to Seller:                    Communication Systems Technology, Inc.
                                 8975 Guilford Road
                                 Columbia, Maryland 21046
                                 ATTN:    Barbara Perrier Dreyer
                                 Facsimile Number: (301) 621-8608

With a copy to:                  Piper & Marbury L.L.P.
                                 1200 19th Street, N.W.
                                 Washington, D.C. 20036
                                 ATTN: Christian E. Plaza, Esq.
                                 Facsimile Number: (202) 223-2085

If to Buyer:                     Communications Research, Inc.
                                 69 Wesley Street
                                 So. Hackensack, NJ 07606
                                 ATTN: Carl R. Ceragno, President
                                 Facsimile Number: (201) 457-0400

                                       7

<PAGE>

With a copy to:                  Larry Hartman, Esq.
===============                  1241 N. Kenmore Avenue
                                 Los Angeles, CA 90028
                                 Facsimile Number: (323) 461-4007

Such notice or other communication shall be deemed to have been given (i) when
delivered, if sent by certified mail or delivered personally or by facsimile
transmission, or (ii) on the second following Business Day if sent by overnight
mail or overnight courier.

         8.2 Choice of Law and Venue. The validity of this Agreement, its
construction, interpretation, and enforcement, and the rights of the parties
hereto, shall be determined under, governed by, and construed in accordance with
the internal laws of the State of Maryland, without regard to principles of
conflicts of laws. The parties agree that all actions or proceedings arising in
connection with this Agreement shall be tried and litigated only in the state
and federal courts located in the State of Maryland. Buyer and Seller waive any
right each may have to assert the doctrine of forum non conveniens or to object
to venue to the extent any proceeding is brought in accordance with this
Section.

         8.3 Waiver of Jury Trial. The parties hereto hereby waive all right to
trial by jury of all claims, defenses, counterclaims and suits of any kind
arising from or relating to (i) this Agreement, (ii) the Loan purchased
hereunder, (iii) the use, ownership, control, operation or condition of the
Collateral and (iv) and any contingency fee contracts with attorneys or
collection agencies. The parties acknowledge that they make this waiver
voluntarily and knowingly after consultation with counsel of their choice. The
parties hereto agree that all such claims, defenses, counterclaims and suits
shall be tried before a judge of competent jurisdiction, without a jury. 8.4
Severability. Each part of this Agreement is intended to be severable. If any
term, covenant, condition or provision of this Agreement is unlawful, invalid or
unenforceable, such illegality, invalidity or unenforceability shall not affect
the remaining provisions of this Agreement, which shall remain in full force and
effect and shall be binding upon the parties.

         8.5 Headings. The headings of the Articles and Sections of this
Agreement are inserted for convenience only and shall not affect the meaning or
interpretation of this Agreement or any provision thereof.

         8.6 Assignments; Binding Effect. This Agreement shall not be assigned
by either party without the express written consent of the other party. This
Agreement shall inure to the benefit of and be binding upon the respective
successors and permitted assigns of the parties.

         8.7 Survival. Seller and Buyer agree that the covenants, warranties and
representations herein contained shall survive the Closing, shall not merge into
the Closing Documents, and shall be independently enforceable.

         8.8 Entire Agreement; Amendments. This Agreement, including any
attachments, exhibits and schedules referred to in this Agreement, any other
documents executed by Seller or Buyer at Closing in connection with this
Agreement constitute the entire agreement between the parties pertaining to the
subject matter hereof and supersedes any and all prior agreements,
representations and understandings of the parties, written or oral. The terms of
this Agreement shall not be modified or amended except by subsequent written
agreement of the parties.

         8.9 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which shall
constitute one and the same instrument.

                                       8

<PAGE>

         8.10 Construction. Unless the context requires otherwise, singular
nouns and pronouns used herein shall be deemed to include the plural, and
pronouns of one gender shall be deemed to include the equivalent pronoun of the
other gender.

         8.11 Waiver. No waiver by either party of the other party's breach of
any term, covenant or condition contained in this Agreement shall be deemed to
be a waiver of any subsequent breach of the same or any other term, covenant or
condition of this Agreement. In addition, no waiver by Seller of any condition
prior to closing is enforceable unless in writing.

         8.12 No Alteration. By executing this Agreement below, the parties
acknowledge and affirm that no alterations have been made to the Loan Sale
Agreement, except for filling in any blanks.

                                       9

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and sealed as of the day and year first written above.

WITNESS/ATTEST:                                 BUYER:

                                                COMMUNICATIONS RESEARCH, INC.

                                                By:
----------------------------                        ----------------------------
                                                    Name:
                                                    Title:

                                                By:
----------------------------                        ----------------------------
                                                    Name:
                                                    Title:

<PAGE>

                                   EXHIBIT B

                                   ASSIGNMENT

         THIS ASSIGNMENT is made as of the 17th day of November, 1999.

         FOR VALUE RECEIVED AND WITHOUT WARRANTY, REPRESENTATION OR RECOURSE,
except for those explicitly set forth in the Loan Sale Agreement dated as of
November 17, 1999 by and between Communications Research, Inc. ("Assignee") and
Communication Systems Technology, Inc. ("Assignor"), Assignor does hereby
assign, transfer and convey unto Assignee the following:

1.       Letter Agreement, dated December 19, 1997, among Communication Systems
         Technology, Inc., Optel Communications, Inc., Abraham J. Zelkin and
         Carol Zelkin

2.       Secured Promissory Note dated December 19, 1997 in the amount of
         $250,000 executed by Optel Communications, Inc., in favor of
         Communication Systems Technology, Inc.

3.       Security Agreement dated December 19, 1997 executed by Optel
         Communications, Inc., in favor of

4.       Escrow Agreement dated May 8, 1998, executed by Optel Communications,
         Inc., Communication Systems Technology, Inc. and Wilson, Elser,
         Maskowitz, Edelman & Dicker L.L.P.

5.       A list of all intellectual and material properties securing the loan
         attached hereto.

<PAGE>

         IN WITNESS WHEREOF, the Assignor has executed and delivered this
Assignment to Assignee as of the day and year first above written.

<TABLE>
<CAPTION>
<S> <C>
                                        COMMUNICATIONS SYSTEMS
                                        TECHNOLOGY, INC.

                                        By:
------------------------------------       ---------------------------------
                                           Name:
                                           Title:
</TABLE>

STATE OF ______________________                 )
                                                        ) ss:
CITY/COUNTY OF _______________                  )

         I HEREBY CERTIFY that on this 17th day of November 1999, before me, the
undersigned officer, personally appeared ____________________, who acknowledged
himself/herself to be the ____________________ of Communication Systems
Technology, Inc., and that (s)he, in such capacity, being authorized to do so,
executed the foregoing instrument for the purposes therein contained, by signing
the name of Communication Systems Technology, Inc., as ____________________ of
Communication Systems Technology, Inc.

         IN WITNESS WHEREOF, I hereunto set my hand and Notarial Seal.

                                        ------------------------------
                                                Notary Public

My Commission expires:

         The undersigned, an attorney duly admitted to practice before the Court
of Appeals of Maryland, hereby certifies that the foregoing instrument was
prepared by or under his supervision.

                                        -----------------------------
                                              Christian E. Plaza
<PAGE>

                            Attachment to Assignment
                            ------------------------
                                     Item 5
4-PC's
2-Sony 13" video monitors
3-9" B&W monitors
6 Video VGA's
2 Coreco cards
Sharp Laser Printer
3 Elmo Projectors
1-Fotovix slide to video converter
6-6x9 tablets
1-Cannon VCC1
3 Howard video cameras
1-proshare video camera
20-Metal shipping cases
1-20 foot booth in shipping containers
2-carts
1 solder
station PC speakers, power supplies, cables and keyboards
1-chroma PIP box
<PAGE>

                               SECURITY AGREEMENT

         THIS SECURITY AGREEMENT (this "Agreement") is made as of this 17th day
of November, 1999, by Communications Research, Inc., a Nevada ("CRI"), with an
address of 69 Wesley Street, South Hackensack, New Jersey 07606, and Telewriter
Corporation, Inc., a Nevada corporation (the "Company"), with an address of 69
Wesley Street, South Hackensack, New Jersey 07606, in favor of Communication
Systems Technology, Inc., a Delaware corporation (the "Holder").

                                   RECITALS:

         A. CRI and the Holder have entered into a Loan Sale Agreement of even
date herewith (the "Loan Agreement") which sets forth the terms under which CRI
will issue to the Holder a Convertible Secured Note in the aggregate principal
amount of $135,000 (the "Note").

         B. CRI has simultaneously herewith assigned the Note to the Company,
which is 51% owned by CRI.

         C. The Company has simultaneously herewith assigned all of its
interests in that certain loan (as defined in Attachment 5 of the Loan Sale
Agreement executed on the same day hereof in connection herewith) to Optel
Communications, Inc. ("Optel"), the maker of the Note subject to the loan, in
exchange for all of the assets in and of Optel.

         D. As a condition of entering into the Loan Agreement and the
transactions contemplated therein, the Holder requires that the Company enter
into this Security Agreement.

         NOW, THEREFORE, in consideration of the receipt of One Dollar ($1.00)
and other good and valuable consideration, the receipt of which is hereby
acknowledged, the Company hereby agrees in favor of the Holder as follows:

                             ARTICLE I: DEFINITIONS

         1.01 Definitions. In addition to the terms defined elsewhere herein,
when used herein, the following capitalized terms shall have the meanings
indicated:

<PAGE>

         "Chattel Paper" shall mean and includes without limitation,
collectively, all of the Company's now owned and hereafter acquired "chattel
paper," as that term is defined in Section 9-105(1)(b) of the Applicable UCC.

         "Collateral" shall mean and includes without limitation, collectively,
the now-owned and hereafter acquired tangible and intangible property of the
Company that was previously held by Optel as defined in Attachment 5 of the LOAN
SALE AGREEMENT, including all of the following: (i) all Accounts; (ii) all
Chattel Paper, (iii) all Equipment; (iv) all Goods; (v) all Instruments; (vi)
all Inventory; (vii) all General Intangibles; (viii) all Contract Rights; (ix)
all Proceeds; (x) all books and records of Optel, including those relating to
any of the foregoing; (xi) all monies, deposit accounts, and rights to money of
any kind; (xii) all additions or accessions to any of the foregoing; (xiii) all
substitutions for any of the foregoing; and (xiv) all replacements, products and
proceeds of the foregoing.

         "Contract Rights" shall mean and includes without limitation,
collectively, all of the Company's now-owned or hereafter acquired "contract
rights" as now or formerly defined in the Applicable UCC and also any right to
payment under a contract not yet earned by performance and not evidenced by an
instrument or Chattel Paper.

         "Equipment" shall mean and includes without limitation, collectively,
all of Company's now owned or hereinafter acquired tangible property previously
held by Optel as defined in Attachment 5 of the LOAN SALE AGREEMENT.

         "Goods" shall mean and includes without limitations, collectively, all
of the Company's now owned and hereafter acquired "goods," as that term is
defined in Section 9-105(1)(h) of the Applicable UCC.

         "General Intangibles" shall mean and includes without limitation,
collectively, all of the Company's now owned and hereafter "general intangibles"
that were previously held by Optel as defined in Attachment 5 of the LOAN SALE
AGREEMENT, including without limitation, all rights, licenses, permits and
authorizations held by the Company; all rights under governmental ordinances or
agreements with governmental authorities; things in action; contractual rights;
goodwill; literary rights; rights to performance; rights in curriculum design,
structure and content, and all of the Intellectual Property (as defined below).

         "Instruments" shall mean and includes without limitation, collectively,
all of the Company's now owned or hereafter "instruments" that were previously
held by Optel as defined in Attachment 5 of the LOAN SALE AGREEMENT and all
other instruments, notes, items of payment, negotiable documents, and documents
of title, including without limitation, the Secured Promissory Note assigned by
Holder to the Company pursuant to the Loan Agreement.

         "Intellectual Property" shall mean, collectively, all of the Company's
now owned and hereafter acquired intellectual property that was previously held
by Optel as defined in Attachment 5 of the LOAN SALE AGREEMENT, including,
without limitation the following: (a) all patents (including all rights
corresponding thereto throughout the world, and all improvements thereon); (b)
all trademarks (including service marks, trade names and trade secrets, and all
goodwill associated therewith), (c) all copyrights (including all renewals,
extensions and continuations thereof); (d) all applications for patents,
trademarks or copyrights and all applications otherwise relating in any way to
the subject matter of such patents, copyrights and trademarks; (e) all patents,
copyrights, trademarks or applications therefor arising after the date of this
Agreement; (f) all reissues, continuations, continuations-in-part and divisions
of the property described in the preceding clauses (a), (b), (c), (d), and (e),
including, without limitation, any claims by the Company against third parties
for infringement thereof; and (g) all rights to sue for past, present and future
infringements or violations of any such patents, trademarks, and copyrights.

"Inventory" shall mean and includes without limitation,
collectively, all of the Company's now owned and hereafter acquired "inventory"

                                       2

<PAGE>

that was previously held by Optel as defined in Attachment 5 of the LOAN SALE
AGREEMENT and all products, replacements, and substitutions therefor and
thereof, and all accessions thereto, and all books, records, computer software
and logs relating to and necessary or appropriate to the conduct of the business
and operation the Company.

         "Obligations" shall mean and includes without limitation, collectively,
all of the Company's indebtedness, liabilities and obligations arising under
this Agreement, any renewals, modifications, and extensions thereof, and any
other obligations of the Company to the Holder, including such other or
additional financing that the Holder may extend to the Company at any time in
the Holder's sole discretion.

         "Permitted Encumbrances" shall mean any lien, mortgage, security
interest or other encumbrance that results from any of the following: (i) the
liens, mortgages, security interests and other encumbrances created or arising
pursuant to this Agreement, the Note or the Loan Agreement; (ii) liens for taxes
and assessments not delinquent or actively being contested in good faith by the
Company by appropriate proceedings provided that the Company has set aside on
its books and records adequate reserves in accordance with generally accepted
accounting principles and provided further that no action is being taken by a
governmental authority or agency to enforce any such lien or encumbrance; (iii)
deposits or pledges for goods or services made in the ordinary course of the
Company's business; and (iv) title of a bona fide lessor of tangible personal
property to the Company (other than a capital lease).

         "Person" shall mean any individual, corporation, partnership, joint
venture, limited liability company, unincorporated association, trust, or other
legal entity.

         "Proceeds" shall mean and includes without limitation "proceeds" as
defined in the Applicable UCC, all insurance proceeds and each type of property
described in the definition of "Collateral" in this Agreement and all other cash
and noncash proceeds resulting from any complete or partial transfer of the
Collateral or any portion thereof or otherwise relating to or generated by, any
of the Collateral.

         "Real Property" shall mean, collectively, all real property owned by
the Company or in which the Company has a leasehold interest and all real
property hereafter acquired by the Company in fee or by means of a leasehold
interest, together with all goods located on any such real property that are or
may become "fixtures" under the law of the jurisdiction in which such real
property is located.

                     ARTICLE II: GRANT OF SECURITY INTEREST

         2.01 Grant. As security for the payment and performance of each of the
Obligations, the Company hereby grants to the Holder a continuing security
interest in all of the Collateral.

         2.02 Rights of Holder as Secured Party. In addition to the rights and
remedies granted to the Holder herein, the Holder shall have all of the rights
and remedies of a secured party under the Applicable UCC with respect to all of
the Collateral.

                  ARTICLE III: REPRESENTATIONS AND WARRANTIES

         To induce the Holder to enter into the Loan Agreement, Company
represents and warrants to the Holder as follows (which representations and
warranties shall survive the execution and delivery of this Agreement and the
funding of the Note):

3.01 Due Organization and Corporate Authorization. The Company presently is and
shall hereafter remain in good standing as a Nevada corporation and is and shall
hereafter remain duly qualified and in good standing in each state in which, by
reason of the nature or location of the Company's assets or operation of the
Company's business, such qualification may be necessary. The execution and
delivery of this Agreement and of any other documents,

                                       3
<PAGE>

instruments, and agreements executed in connection herewith constitute
representations by the individual signing this Agreement and said instruments
and by the Company that by such execution and delivery the Company has received
all such corporate authorization as may be necessary to permit such execution
and delivery to, and that they do, bind the Company.

         3.02 No Conflicting Agreements. There is no provision in the
Certificate of Incorporation or By-laws of the Company, each as amended to date,
or in any document by which the Company may be bound which prohibits the
execution and delivery of this Agreement or of any other instrument, agreement,
or paper which relates to the Company's relationship with the Holder or which
prohibits or adversely affects the Company's carrying out of the terms thereof.

         3.03 Mailing Address; Chief Executive Office; Principal Place of
Business. The address for Company on the first page of this Agreement is the
Company's correct mailing address, the address of Company's chief executive
office, and the address of Company's principal place of business.

         3.04 Other Names. The Company has not changed its name or ever used any
other name or any trade name.

         3.05 Location of Goods and Inventory. All of the Goods and Inventory
are located only at its principal place of business set forth in the Preamble to
this Agreement and the locations, if any, listed on Schedule

         3.06 attached hereto and made a part hereof, and none of the Goods or
Inventory is stored with, or in the possession of, any bailee, warehouseman,
subcontractor, or other similar Person.

                             ARTICLE IV: COVENANTS

         Until the Note is repaid in full or converted pursuant to the Loan
Agreement and each of the other Obligations has been satisfied in full and
discharged, the Company covenants and agrees with the Holder as follows:

         4.01 Offices. CRI and the Company shall maintain the their respective
chief executive offices and principal places of business at the address for CRI
on the first page of this Agreement and shall not change the location of their
respective chief executive offices or principal places of business without
providing sixty (60) days' prior written notice to the Holder.

         4.02 Books and Records.

                (a) CRI will keep and maintain, at its own cost and
expense, satisfactory and complete books and records of and with respect to the
Collateral;

                (b) The Holder shall at all reasonable times, at intervals to be
determined by the Holder, before or after the occurrence of an Event of Default
under the Note, and without hindrance or delay, have full and free access to the
above-referenced books and records and any other data relating to the Collateral
and the right at all reasonable times to examine the same and to audit, inspect,
verify, check and make extracts or photocopies therefrom;

                (c) The Holder shall have the right, at the cost and expense of
the Holder, to audit the books and records of the Company concerning the
Collateral and to require the Company to procure and, following the occurrence
of an Event of Default under the Note, deliver to the Holder, at the Company's
and/or CRI's own cost and expense, all reports and information pertaining to the
Collateral and to such portion of the financial condition and business
operations of the Company as the Holder may reasonably deem necessary; and

                (d) The Holder shall have a special property interest in all
books and records of the Company pertaining to the Collateral and, at any time,
upon the request of the Holder following the occurrence of an Event of

                                       4

<PAGE>

Default under the Note, the Company and/or CRI shall, at its own cost and
expense, deliver all such books or records to the Holder or its designated
representatives and shall deliver to the Holder or its designated
representatives all original and other documents evidencing and relating to the
Collateral.

         4.03 Equipment. The Company shall use the Equipment solely in the
conduct of its business and in a careful and proper manner. The Company shall
keep all of the Equipment at the Company's principal place of business and shall
not change the location of any item of the Equipment without the prior written
consent of the Holder.

         4.04 Goods and Inventory. The Company shall store all of the Goods and
all of the Inventory in a careful, secure and proper manner at its principal
place of business as provided in Section 4.01 hereof and shall not change the
location of any item of the Goods or Inventory without providing sixty (60)
days' prior written notice to the Holder.

         4.05 No Transfers of Collateral. Notwithstanding that Proceeds are
included within the definition of "Collateral" (and therefore subject to the
Holder's' security interest hereby granted), the Company shall not transfer the
Collateral or any portion thereof or any interest therein without the prior
written consent of the Holder other than Inventory in the ordinary course of
business.

         4.06 Liens, Claims and Attachments. The Company shall maintain the
Collateral free from all claims, liens, encumbrances and legal processes (other
than Permitted Encumbrances), and the Company shall notify the Holder
immediately of notice of any lien, attachment or judicial proceeding affecting
the Collateral in whole or in part.

         4.07 Payment of Taxes, Assessments and Fees. The Company shall pay all
taxes, assessments and fees relating to the ownership or use of the Collateral
or any portion thereof as and when the same shall be due and payable.

         4.08 Maintenance, Repairs and Replacements. The Company shall keep and
maintain, or cause to be kept and maintained, all of the tangible Collateral in
good condition and shall provide all maintenance and service and make all
repairs and replacements necessary for such purpose. If any parts or accessories
forming part of the tangible Collateral become worn out, lost, destroyed,
damaged beyond repair or otherwise permanently rendered unfit for use, the
Company, at its own expense, shall promptly replace such parts or accessories or
cause the same to be replaced by replacement parts or accessories that have a
value and utility at least equal to the parts or accessories replaced. All
accessories, parts and replacements for or which are added to or become attached
to any of the tangible Collateral shall immediately be deemed incorporated in
the tangible Collateral and subject to the security interest granted herein.

         4.09 Right to Inspect. The Holder shall have the right to inspect all
of the tangible Collateral and all maintenance and repair records relating
thereto at all reasonable times; provided, however, if the Holder desires to
inspect the tangible Collateral or any such records during other than the
Company's normal hours of operation, then at any time prior to the occurrence of
an Event of Default under the Note the Holder shall provide the Company with
twenty-four (24) hours prior notice of such inspection.

         4.10 Supporting Materials. The Company, upon the reasonable request of
the Holder, but not more frequently then once every 60 days, shall provide the
Holder from time to time with: (a) written statements or schedules identifying
and describing the Collateral, and all additions, substitutions, and
replacements thereof, in such detail as the Holder may require; (b) copies of
customers' invoices or billing statements; (c) proof of the sale or lease of
goods or evidence of the satisfactory performance of services which gave rise to
any Accounts; and (d) such other schedules and information as the Holder
reasonably may require. The items to be provided under this Section 4.10 shall

                                       5

<PAGE>

be in form satisfactory to the Holder and are to be executed and delivered to
the Holder from time to time solely for the Holder's convenience in maintaining
records of the Collateral. The Company's failure to give any of such items to
the Holder shall not affect, terminate, modify or otherwise limit the Holder's
security interest in any of the Collateral.

         4.11 No Material Changes. The Company shall not make any material
change (or changes which are not in the ordinary course of the Company's
business) to the terms of any General Intangible, Chattel Paper, Instrument, or
Account, without the prior written permission of the Holder.

         4.12 Notification of Delays. The Company, upon request of a Holder,
shall regularly advise the Holder of any delay in delivery or performance, or
claims made, in regard to any of the Collateral.

         4.13 Additional Covenants Relating to Accounts and Chattel Paper.

                (a) Upon the reasonable request of a Holder, but not more
frequently then once every 60 days, the Company shall deliver to the Holder
promptly, but not more than fifteen (15) calendar days after the last day of
each month, a listing and aging report for the Accounts, in reasonable form and
substance, together with such other information and financial reports as the
Holder may request in Holder's reasonable discretion from time to time; and

                (b) Upon the request of the Holder, at any time after the
occurrence of an Event of Default under the Note, the Company shall deposit, or
cause to be deposited, all checks, drafts, cash and other remittances in payment
of, or on account of payment of, any and all Accounts and Chattel Paper (all of
the foregoing herein collectively referred to as "items of payment" to an
account (the "Collateral Account") designated by the Holder at a bank or other
financial institution designated by the Holder. The Holder shall not be
responsible for the solvency of any such bank or other financial institution, or
the management and administration of the Collateral Account. The Holder alone
shall have the power to access and make withdrawals from the Collateral Account.
The Company shall deposit such items of payment for credit to the Collateral
Account within one banking day of the receipt thereof and in precisely the form
received, except for the endorsement of the Company where necessary to permit
the collection of such items of payment, which endorsement the Company hereby
agrees to make. Pending such deposit, the Company will not commingle any such
items of payment with any of its other funds or property, but will hold them
separate and apart. The Holder shall be entitled, from time to time in the
Holder's' discretion, to apply the funds in the Collateral Account against any
of the Obligations.

         4.14 Notice to Holder; Joinder by Company. The Company will promptly
notify the Holder if the Company learns of any unauthorized use by any Person
with respect to any of the Collateral. If requested by a Holder, the Company, at
the Company's expense, shall join with the Holder in such action as the Holder,
in the Holder's discretion, may reasonably deem advisable for the protection of
the perfected security interest of the Holder in and to all of the Collateral.

         4.15 Indebtedness. The Company does not and shall not hereafter have
any indebtedness with the exception of (a) any indebtedness to the Holder; (b)
the indebtedness (if any) listed on Schedule 4.15 attached hereto and made a
part hereof and approved by the Holder; and (c) ordinary trade payables incurred
in the normal course of the Company's business which are less than sixty (60)
days past invoice date.

         4.16 Dividends, Investments, etc. The Company shall not without the
prior written consent of the Holder (a) pay any dividend, other than a common
stock dividend of the Company's own capital stock; (b) own, redeem, retire,
purchase, or acquire any of the Company's capital stock; (c) invest in or
purchase any stock or securities or rights to purchase any such stock or
securities, of any corporation or other entity; (d) merge or consolidate or be
merged or consolidated with or into any other corporation or other entity; (e)
consolidate any of the Company's operations with those of any other corporation
or other entity; or (f) subordinate any debts or obligations owed to the Company
by any third party to any other debts owed by such third party to any other
party unless this agreement survives in total.

                                       6

<PAGE>

         4.17 Sale and Leaseback. The Company shall not enter into any
arrangement, directly or indirectly whereby the Company shall sell or transfer
any property owned by it in order then or thereafter to lease such property or
lease other property that the Company intends to use for substantially the same
purpose as the property being sold or transferred.

         4.18 Corporate Loans. The Company shall not make any loans or advances
to any individual, firm, corporation, or other entity including, without
limitation, any officer, employee, director, shareholder, or salesperson of the
Company.

         4.19. Line of Business. The Company shall not without the prior written
consent of the Holder engage in any business other than the business in which it
is currently engaged, or a business reasonably allied thereto.

         4.20 Insurance. The Company shall have and maintain at all times
insurance covering such risks, in such amounts, containing such terms, in such
form, for such periods, and written by such companies as may be satisfactory to
the Holder. All such insurance shall provide for a minimum of thirty (30) days'
written notice of cancellation to the Holder and all such insurance which covers
the Collateral shall include such endorsements in favor of the Holder as the
Holder may specify. Each such endorsement shall provide that the insurance, to
the extent of the Holder's' interest therein, shall not be impaired or
invalidated, in whole or in part, by reason of any act or neglect of the Company
or by the failure of the Company to comply with any warranty or condition of the
policy. In the event of the failure by the Company to provide and maintain
insurance as herein provided, the Holder may, at its option, provide such
insurance. The Company shall furnish to the Holder certificates, binders,
endorsements or other evidence satisfactory to the Holder regarding compliance
by the Company with the foregoing insurance provisions. Originals of all such
policies shall be delivered to and held by the Holder. The Company shall advise
the Holder of each claim made by the Company under any policy of insurance which
covers the Collateral and will permit the Holder, at the Holder's' option in
each instance, to the exclusion of the Company, to conduct the adjustment of
each such claim. The Company hereby appoints the Holder as the Company's
attorney in fact to obtain, adjust, settle, and cancel any insurance described
in this section and to endorse in favor of the Holder any and all drafts and
other instruments with respect to such insurance. The within appointment, being
coupled with an interest, is irrevocable until this Agreement is terminated by a
written instrument executed by a duly authorized officer of the Holder. The
Holder shall not be liable on account of any exercise pursuant to said power
except for any exercise in actual willful misconduct and bad faith. The Holder
may apply any proceeds of such insurance against the Obligations, whether or not
such have matured, in such order of application as the Holder may determine.

         4.21 Interest in the Company. Without the prior written consent of the
Holder, CRI shall not transfer or otherwise dispose of its interest in the
Company, or any portion thereof, and shall maintain such interest free and clear
of all claims, liens, encumbrances and legal process (other than Permitted
Encumbrances), until such time as the total amounts due under the Note have been
paid.

                                   ARTICLE V: INDEMNIFICATION

         5.01 Indemnification. The Company hereby agrees to indemnify, defend
and hold the Holder harmless jointly and severally from and against any claim,
suit, loss, liability, damage or expense (including attorneys' fees and
expenses) resulting from or arising out of the Loan Agreement and the
transactions contemplated therein with the Company, except for any such claims
resulting from the gross negligence or willful misconduct of the Holder as
determined by a court of competent jurisdiction after the expiration of all
applicable appeal periods. Any actual or threatened claim may be defended,
compromised, settled, or pursued by the Holder with counsel of the Holder's'
selection, but at the expense of the Company.

                                       7

<PAGE>

                        ARTICLE VI: DEFAULT AND REMEDIES

         Upon the occurrence of either (a) the failure of the Company to perform
any term, covenant or agreement contained herein, in the Note, the Loan
Agreement, or any other document executed and delivered in connection herewith,
(b) any representation or warranty of the Company under this Agreement, the Note
or the Loan Agreement or any other document executed and delivered in connection
herewith shall not be correct in any material respect upon the date when made or
deemed to have been made or repeated or (c) the occurrence of any Event of
Default under and as defined in the Note, an event of default shall have
occurred hereunder and the Holder shall be entitled at its election, without
notice of its election and without demand to exercise, in addition to those
available at law or in equity, any or all of the following rights and remedies:

         6.01 Acceleration. The Holder may declare all Obligations immediately
due and payable (provided upon the occurrence of an event of default on account
of a petition in bankruptcy filed by the Company all Obligations shall become
immediately due and payable without any action by the Holder).

         6.02 Assemble Collateral. The Holder may require the Company (at the
Company's sole expense) to assemble and to forward promptly any or all of the
Goods, Equipment, Chattel Paper, and Inventory to the Holder at such location(s)
as shall be reasonably required by the Holder.

         6.03 Take Possession. Without breaching the peace, the Holder may enter
upon the premises where any Goods, Equipment, Chattel Paper or Inventory is
located and take immediate possession thereof, by summary proceedings or
otherwise, and the Holder may remove the Goods, Equipment, Chattel Paper or
Inventory, all without liability of the Holder to the Company for or by reason
of such entry, taking of possession or removal, whether for the restoration of
damage to property caused by such taking or otherwise.

         6.04 Appointment of Receiver. The Holder shall be entitled to
appointment of a receiver to take possession of and to manage all or any portion
of the Collateral. The Holder may obtain such appointment without notice to, or
demand of the Company, on an ex parte basis before any court of competent
jurisdiction, and without regard to the adequacy of the Collateral as security
for the Obligations.

         6.05 Sale of Collateral. The Holder may sell, assign, and deliver or
otherwise dispose of or cause to be sold or otherwise disposed of, the whole or
any part of the Collateral, at one (1) or more commercially reasonable public or
private sales, without demand or advertisement of the time or place of sale or
of any adjournment thereof, each of which is hereby expressly waived by the
Company. The sale or other disposition may be made for such price and upon such
terms and conditions as the Holder may deem best in its exercise of its
commercially reasonable discretion. The Holder may apply the proceeds from such
sale or sales or such other disposition or dispositions: first, to the
settlement of all liens or claims on the Collateral with a lien priority greater
than that of the Holder, if any; second, to the payment of all expenses
connected with the assembly, preservation, preparation, and sale or other
disposition of the Collateral, including any trustees' or auctioneers' fees,
commissions or other expenses; third, to the payment of all amounts due under
the Note and all other monetary Obligations; and fourth, returning the excess,
if any, to the Company. The Company hereby expressly waives all rights of
appraisal, whether before or after the sale or other disposition, and any right
of redemption after the sale or other disposition. The Company shall have the
right to redeem any of the Collateral up to the time of the sale or other
disposition by paying to the Holder the aggregate indebtedness under the Note
and this Agreement, together with all costs incurred by the Holder in collecting
such amounts or in enforcing its rights and remedies hereunder, and any other
monetary Obligations then due and owing.

         6.06 Attorney-in-Fact. The Company hereby irrevocably appoints the
Holder as Company's attorney-in-fact, with power of substitution, to do each of
the following in the name of Company or in the name of the Holder or otherwise,
for the use and benefit of the Holder, but at the cost and expense of the
Company, and without notice to the Company:

                                       8

<PAGE>

                (a) notify the debtors or other party(ies) obligated under
any of the Accounts, Chattel Paper or General Intangibles to make payments
thereon directly to the Holder, and to take control of the cash and non-cash
proceeds of any Collateral;

                (b) compromise, extend, or renew any of the Collateral or deal
with the same as it may deem advisable;

                (c) release, make exchanges, substitutions, or surrender
of all or any part of the Collateral;

                (d) remove from Company's place of business all books, records,
ledger sheets, correspondence, invoices and documents, relating to or evidencing
any of the Collateral or without cost or expense to the Holder, make such use of
the Company's place(s) of business as may be reasonably necessary to administer,
control and collect the Collateral;

                (e) repair, alter or supply goods, if any, necessary to fulfill
in whole or in part the purchase order of any Account debtor;

                (f) demand, collect, receipt for and give renewals, extensions,
discharges and releases of any of the Collateral;

                (g) institute and prosecute legal and equitable proceedings to
enforce collection of, or realize upon, any of the Collateral;

                (h) settle, renew, extend, compromise, compound, exchange or
adjust claims with respect to any of the Collateral or any legal proceedings
brought with respect thereto;

                (i) endorse the name of the Company upon any items of payment
relating to the Collateral or upon any proof of claim in bankruptcy against an
Account debtor;

                (j) institute and prosecute legal and equitable proceedings to
reclaim any of the goods sold to any debtor obligated on an Account, Chattel
Paper, or General Intangible at a time when such debtor was insolvent;

                (k) receive and open all mail addressed to the Company and
notify the postal authorities to change the address for the delivery of mail to
the Company to such address as the Holder may designate; and

                (l) execute and deliver on behalf of the Company one or more
instruments of assignment of the Intellectual Property (or application, letters
patent or recording relating thereto), in form suitable for filing, recording or
registration.

         6.07 Right to Make Payments or Otherwise Cure. Whether or not such
failure shall constitute an Event of Default under the terms of the Note, the
Holder may, in its sole discretion, pay any amount or do any act which the
Company fails to do or pay as required by the terms of this Agreement. The
Holder may also take any actions, make any payments, or incur any reasonable
expenses (including, without limitation, the payment of filing fees, court
costs, travel expenses and attorneys' fees) as may be necessary or appropriate
to preserve, defend, protect, maintain, record or enforce the Obligations, the
Collateral, or the assignment granted hereunder.

         6.08 Right to Defend. Whether or not such failure shall constitute an
Event of Default under the terms of the Note, if any of the Collateral is or
becomes the subject of any litigation or other proceeding and the Company fails
to fully defend such litigation or other proceeding and to fully protect the
Company's and the Holder's' rights in such Collateral in good faith, then the
Holder may, at its sole option, elect to defend and control the

                                       9

<PAGE>

defense of such litigation or other proceeding, including the right to: (a)
select and retain counsel; (b) determine whether settlement shall be offered or
accepted; and (c) determine and negotiate all settlement terms. Any Holder
choosing to do so shall be fully indemnified by the Company and shall be
reimbursed for all costs of litigation and settlement, including, without
limitation, all costs, expenses and reasonable attorneys' fees. Any payments
made pursuant to the authority granted in Section 6.07 above or this Section
6.08 shall be deemed added to the principal amount outstanding under the Note
and shall accrue interest as provided in the Note.

                       ARTICLE VII:ADDITIONAL PROVISIONS

         7.01 Deficiency. The Company shall be liable for all Obligations
remaining after crediting to the Company any net proceeds received by the Holder
following exercise of any of its rights and remedies hereunder.

         7.02 No Duty to Act. Nothing contained in this Agreement shall be
construed as requiring the Holder to take any particular enforcement or remedial
action or combination of enforcement or remedial actions at any time.

         7.03 Remedies Not Limited; Partial Exercise. All of the Holder's'
rights and remedies, whether provided under this Agreement, at law, in equity,
or otherwise shall be cumulative and none is exclusive. Such rights and remedies
may be enforced alternatively, successively or concurrently, and the Company
hereby agrees that the Holder may enforce its rights separately hereunder with
respect to individual items or classes of Collateral without waiving or
prejudicing in any respect a Holder's rights hereunder with respect to any other
items or classes of Collateral. The Holder may exercise any other right or
remedy which may be available to it under this Agreement or Applicable Law or
may proceed by appropriate court action to enforce the terms hereof or to
recover damages for the breach hereof or to rescind this Agreement in whole or
in part.

         7.04 Costs of Enforcement. The Company shall be liable for all costs
incurred by the Holder in collecting any sums owed to the Holder under the Note
or in otherwise enforcing any of the Obligations (whether or not suit is
brought), including, but not limited to, all attorneys' fees and expenses, court
costs, and costs of consultants, appraisers and other advisors retained by the
Holder.

         7.05 Mitigation of Damages. To the extent permitted by Applicable Law,
Company hereby waives any notice or other mandatory requirements of Applicable
Law, now or hereafter in effect, which might require Holder to sell, lease or
otherwise use any of the Collateral in mitigation of Holder's damages; provided,
however, that Company does not waive any legal requirement that a Holder act in
a commercially reasonable manner.

         7.06 No Waivers by Holder. No failure of the Holder to exercise, or
delay by the Holder in the exercise of, any of its rights and remedies granted
herein following the occurrence of an event of default shall constitute a waiver
of any of the Holder's' rights with respect to such event of default or any
subsequent event of default (whether or not similar). Any failure or delay by a
Holder to require strict performance by Company of any of the provisions,
warranties, terms and conditions contained herein or in any other agreement,
document or instrument, shall not affect the Holder's right to demand strict
compliance and performance therewith.

         7.07 Holder's Actions. The Holder may take or release the Collateral or
other security, may release any party primarily or secondarily liable for any
indebtedness to the Holder, may grant extensions, renewals or indulgences with
respect to such indebtedness, and may apply any other security therefor held by
it to the satisfaction of such indebtedness, all without prejudice to any of its
rights or the Company's obligations hereunder or under the Note.

         7.08 Notices. All notices, claims, certificates, requests, demands and
other communications hereunder shall be in writing and shall be deemed to have
been duly given if delivered personally, if delivered by fax

                                       10

<PAGE>

transmission with printed confirmation receipt, if sent by recognized overnight
courier service (e.g. Federal Express), or if sent by U.S. registered or
certified mail, postage prepaid, return receipt requested, as follows:

         To the Company:

         If to the Company, at Communications Research, Inc., 69 Wesley Street,
South Hackensack, New Jersey 07606, Attn: Carl R. Ceragno, President, with a
copy to Larry Hartman, Esq., 1241 N. Kenmore Avenue, Los Angeles, CA 90028;

         If to TeleWriter Corporation, Inc., 69 Wesley Street, South Hackensack,
New Jersey 07606, Attn: Carl R. Ceragno, Vice President, with a copy to Larry
Hartman, Esq., 1241 N. Kenmore Avenue, Los Angeles, CA 90028;

         If to the Holder, at Communication Systems Technology, Inc., 8975
Guilford Road, Columbia, Maryland, Attention: President, or at such other
address or addresses as may have been furnished to the Company in writing by the
Holder, with a copy to Christian E. Plaza, Esq., Piper & Marbury L.L.P., 1200
19th Street, N.W., Washington, D.C. 20036-2430;

         The Company agrees that ten (10) days prior notice of the time and
place of any public sale of all or any portion of the Collateral, or of the time
after which a private sale of all or any portion of the Collateral will be made,
is commercially reasonable notice.

         7.09 Further Assurances. The Company will promptly and duly execute and
deliver to the Holder such further documents and assurances and take such
further actions as a Holder may from time to time reasonably request in order to
carry out the intent and purpose of this Agreement and to establish and protect
the rights and remedies created or intended to be created in favor of the Holder
hereunder. Without limiting the generality of the foregoing, the Company hereby
authorizes the Holder to execute and file one or more financing statements (or
similar documents) with respect to the Collateral, signed only by The Holder.

         7.10 Successors and Assigns. This Agreement shall inure to the benefit
of the Holder and its successors and assigns, and shall be binding upon the
successors and assigns of the Company.

         7.11 Assignment. The Company may not assign any of its rights or
delegate any of its duties under this Agreement without prior written consent of
the Holder. The Holder may assign all of its right, title and interest in and to
this Agreement and the Collateral to any transferee of the Note or interest in
the Note.

         7.12 Governing Law. This Agreement and the rights and obligations of
the parties hereunder shall, in all respects, be governed by, and construed in
accordance with, the laws of the State of Maryland, excluding its conflict of
laws rules, including all matters of construction, validity and performance,
regardless of the location of the Collateral.

         7.13 No Oral Modifications or Waivers. This Agreement shall not be
modified nor any of its provisions waived except by a writing signed by the
party against whom such modification or waiver is sought to be enforced.

         7.14 Termination of Agreement; Release of Security Interest. Upon the
repayment in full of all amounts owing under the Note and the satisfaction of
all other Obligations, this Agreement shall terminate without further action by
the Holder. Notwithstanding the foregoing, upon request, the Holder will execute
and deliver to the Company any releases, termination statements or similar
instruments of reconveyance as the Company may reasonably

                                       11

<PAGE>

request. All such instruments and documents shall be prepared by the Company and
filed or recorded by the Company, at the Company's sole expense, and the Holder
shall not have any duty, obligation or liability with respect thereto.

         7.15 Severability. Any provision of this Agreement or of any related
instrument or document executed pursuant hereto which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof or thereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the Company hereby waives any provision of law which renders
any provision hereof or thereof prohibited or unenforceable in any respect. 7.16
Captions. The captions in this Agreement are for convenience of reference only
and shall not define or limit any of the terms or provisions hereof.

                                       12

<PAGE>

       IN WITNESS WHEREOF, and intending to be legally bound hereby, the
undersigned execute this Agreement under seal as of the day and year first above
written.

                                        CRI:

                                        COMMUNICATIONS RESEARCH, INC.

                                        By:________________________________
                                        Name:______________________________
                                        Its:_______________________________

                                        THE COMPANY:

                                        TELEWRITER CORPORATION, INC.

                                        By:_______________________________
                                        Name:_____________________________
                                        Its:______________________________

                                        HOLDER:

                                        COMMUNICATION SYSTEMS
                                        TECHNOLOGY, INC.

                                        By:_______________________________
                                        Name:_____________________________
                                        Its:______________________________

                                       13EXHIBIT 10.8

                            ASSET PURCHASE AGREEMENT
                                      AMONG
                       GENTNER COMMUNICATIONS CORPORATION,
                                       AND
                                 CLEARONE, INC.

                                  July 5, 2000

                                                                             E-1
<PAGE>

                            ASSET PURCHASE AGREEMENT
         This Asset  Purchase  Agreement (the  "Agreement")  is made and entered
into  effective  as of  July  5,  2000,  by  and  among  GENTNER  COMMUNICATIONS
CORPORATION,  a Utah corporation (the "Buyer"),  CLEARONE, INC., a Massachusetts
corporation (the "Seller"). The Buyer and the Seller are each sometimes referred
to herein as a "Party" and are sometimes  collectively referred to herein as the
"Parties".

         A. This  Agreement  contemplates  a transaction in which the Buyer will
purchase certain of the assets of the Seller in return for a combination of cash
and stock of the Buyer.

         Now,  therefore,  in  consideration  of the  premises  and  the  mutual
promises herein made, and in consideration of the  representations,  warranties,
and covenants herein contained, the Parties agree as follows.

                             ARTICLE 1 -- Definitions.
                             ------------------------

         "Accredited  Investor"  has the  meaning  set  forth  in  Regulation  D
promulgated under the Securities Act.

         "Acquired Assets" means all right, title, and interest in and to all of
the following assets of the Seller: (a) leaseholds,  improvements, fixtures, and
fittings thereon, (b) tangible personal property (such as machinery,  equipment,
manufactured  and  purchased  parts,   goods  in  process  and  finished  goods,
furniture,  tools, and moldings),  (c) Intellectual Property,  including without
limitation that set forth on Exhibit A, goodwill associated therewith,  licenses
and  sublicenses   granted  and  obtained  with  respect  thereto,   and  rights
thereunder,  remedies against infringements thereof, and rights to protection of
interests  therein  under the laws of all  jurisdictions,  (d) leases and rights
thereunder, (e) those agreements,  contracts,  instruments,  Security Interests,
other similar  arrangements,  and rights thereunder,  as set forth on Exhibit A,
(f) claims, deposits,  rights of recovery, and rights of set off, (g) approvals,
permits, licenses, orders, registrations,  certificates,  variances, and similar
rights obtained from governments and governmental agencies,  (h) Inventory,  and
(i) books, records,  ledgers,  files, documents,  correspondence,  lists, plats,
architectural plans, drawings,  and specifications,  advertising and promotional
materials,  studies, reports, and other printed or written materials;  provided,
however,  that the  Acquired  Assets shall not include the  Excluded  Assets.  A
detailed list of the Acquired Assets is set forth on Exhibit A attached  hereto,
which list shall be subject to  approval  by Buyer  following  completion  of an
audit prior to the Closing.

         "Adjusted  Trading  Price"  shall have the meaning set forth in Section
2(c)(i) below.

         "Adverse Consequences" means all actions, suits, proceedings, hearings,
investigations,  charges, complaints,  claims, demands, injunctions,  judgments,
orders, decrees, rulings,  damages, dues, penalties,  fines, costs, amounts paid
in settlement,  Liabilities,  obligations,  Taxes, liens, losses,  expenses, and
fees, including court costs and reasonable attorneys' fees and expenses.

         "Affiliate"  has the meaning set forth in Rule 12b-2 of the regulations
promulgated under the Securities Exchange Act.

                                                                             E-2
<PAGE>

         "Affiliated  Group"  means any  affiliated  group within the meaning of
Code Section  1504(a) or any similar group defined under a similar  provision of
state, local, or foreign law.

         "Applicable  Rate" means the corporate  base rate of interest  publicly
announced from time to time by Bank One, N.A., plus 1% per annum.

         "Assumed  Liabilities" means (i) only the renegotiated and amended form
of that certain License  Agreement  between Seller and VideoServer,  Inc., a/k/a
Ezenia,  Inc. (the  "VideoServer  License")  substantially  in the form attached
hereto  as  Exhibit  B, (ii)  those  liabilities  and  obligations  pursuant  to
contracts  assumed by Buyer as part of the Acquired Assets and listed on Exhibit
A, and (iii) the one year  warranty  obligation  of the Seller for all  finished
products sold during the prior one year period ending on the date hereof, except
for any and all goods in process or finished  products sold to or through Smoltz
Distributing.

         "Basis"  means  any  past or  present  fact,  situation,  circumstance,
status,  condition,  activity,  practice,  plan,  occurrence,  event,  incident,
action,  failure to act, or  transaction  that forms or could form the basis for
any specified consequence.

         "Buyer" has the meaning set forth in the preface above.

         "Cash" means cash and cash equivalents (including marketable securities
and short term  investments)  calculated  in  accordance  with GAAP applied on a
basis consistent with the preparation of the Financial Statements.

         "Closing" has the meaning set forth in Section 2(d) below.

         "Closing Date" has the meaning set forth in Section 2(d) below.

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

         "Compliance  Certificates"  has the meaning  set forth in Section  3(q)
below.

         "Deposit" has the meaning set forth in Section 2(c)(ii)(A) below.

         "Disclosure Schedule" has the meaning set forth in Section 3 below.

         "Employee   Benefit   Plan"   means  any  (a)   nonqualified   deferred
compensation  or  retirement  plan  or   arrangement,   (b)  qualified   defined
contribution retirement plan or arrangement which is an Employee Pension Benefit
Plan, (c) qualified  defined benefit  retirement plan or arrangement which is an
Employee  Pension  Benefit  Plan  (including  any  Multiemployer  Plan),  or (d)
Employee  Welfare Benefit Plan or material  fringe benefit or other  retirement,
bonus, or incentive plan or program.

         "Employee  Pension  Benefit  Plan" has the  meaning  set forth in ERISA
Section 3(2).

         "Employee  Welfare  Benefit  Plan" has the  meaning  set forth in ERISA
Section 3(1).

                                                                             E-2
<PAGE>

         "Environmental,   Health,  and  Safety  Requirements"  shall  mean  all
federal,  state, local and foreign statutes,  regulations,  ordinances and other
provisions  having the force or effect of law, all  judicial and  administrative
orders  and  determinations,  all  contractual  obligations  and all  common law
concerning public health and safety,  worker health and safety, and pollution or
protection of the environment,  including without  limitation all those relating
to  the  presence,  use,  production,   generation,  handling,   transportation,
treatment,  storage,  disposal,  distribution,  labeling,  testing,  processing,
discharge,  release,  threatened  release,  control, or cleanup of any hazardous
materials,  substances or wastes,  chemical substances or mixtures,  pesticides,
pollutants,  contaminants,  toxic chemicals,  petroleum  products or byproducts,
asbestos,  polychlorinated biphenyls, noise or radiation, each as amended and as
now or hereafter in effect.

         "ERISA" means the Employee  Retirement  Income Security Act of 1974, as
amended.

         "Escrow Agent" has the meaning set forth in Section 8(f) below.

         "Escrow Agreement" has the meaning set forth in Section 8(f) below.

         "Escrowed  Amount"  has the  meaning  set forth in Section  2(c)(ii)(B)
below.

         "Escrow Period" shall mean the period of time commencing on the Closing
Date and ending on January 5, 2002,  or such other date which is 18 months  from
the Closing Date if the Closing does not occur on July 5, 2000.

         "Escrowed Shares" has the meaning set forth in Section 2(c)(i) below.

         "Excluded  Assets" means (i) the corporate  charter,  qualifications to
conduct business as a foreign  corporation,  arrangements with registered agents
relating to foreign  qualifications,  taxpayer and other identification numbers,
seals, minute books, stock transfer books, blank stock  certificates,  and other
documents relating to the organization, maintenance, and existence of the Seller
as a corporation,  (ii) any of the rights of the Seller under this Agreement (or
under any side agreement between the Seller on the one hand and the Buyer on the
other hand entered into on or after the date of this Agreement);  (iii) cash and
accounts receivables of Seller; (iv) all of the inventory of Seller, except that
inventory,  if  any,  set  forth  on  Exhibit  A  attached  hereto;  and (v) all
contracts,  licenses,  agreements,  indentures,  mortgages,  Security Interests,
guaranties, and other similar arrangements, except as set forth on Exhibit A.

         "Extremely  Hazardous  Substance"  has the meaning set forth in Section
302 of the  Emergency  Planning  and  Community  Right-to-Know  Act of 1986,  as
amended.

         "Financial Statement" has the meaning set forth in Section 3(g) below.

         "GAAP" means United States generally accepted accounting  principles as
in effect from time to time.

         "Gentner Shares" has the meaning set forth in Section 2(c)(i) below.

         "Gold  Found  Loan  Documents"  has the  meaning  set forth in  Section
2(c)(ii)(A) below.

                                                                             E-2
<PAGE>

         "Intellectual Property" means (a) all inventions (whether patentable or
unpatentable and whether or not reduced to practice),  all improvements thereto,
and all patents, patent applications, and patent disclosures,  together with all
reissuances,  continuations,  continuations-in-part,  revisions, extensions, and
reexaminations  thereof, (b) all trademarks,  service marks, trade dress, logos,
trade names, and corporate names,  together with all translations,  adaptations,
derivations,  and  combinations  thereof and including  all goodwill  associated
therewith,  and all  applications,  registrations,  and  renewals in  connection
therewith,  (c) all copyrightable  works, all copyrights,  and all applications,
registrations,  and renewals in connection therewith, (d) all mask works and all
applications, registrations, and renewals in connection therewith, (e) all trade
secrets  and  confidential   business   information   (including   research  and
development,  know-how,  formulas,  compositions,  manufacturing  and production
processes and techniques,  technical data,  designs,  drawings,  specifications,
customer  and supplier  lists,  pricing and cost  information,  and business and
marketing plans and proposals),  (f) all computer  software  (including data and
related documentation), (g) all other proprietary rights, and (h) all copies and
tangible embodiments thereof (in whatever form or medium).

         "Inventory" means those items of inventory set forth on Exhibit A.

         "Knowledge" means actual knowledge.

         "Liability"  means any  liability  (whether  known or unknown,  whether
asserted or  unasserted,  whether  absolute or  contingent,  whether  accrued or
unaccrued,  whether  liquidated  or  unliquidated,  and whether due or to become
due), including any liability for Taxes.

         "Most Recent  Balance Sheet" means the balance sheet  contained  within
the Most Recent Financial Statements.

         "Most Recent Financial Statements" has the meaning set forth in Section
3(g) below.

         "Most  Recent  Fiscal  Month End" has the  meaning set forth in Section
3(g) below.

         "Most Recent Fiscal Year End" has the meaning set forth in Section 3(g)
below.

         "Multiemployer Plan" has the meaning set forth in ERISA Section 3(37).

         "Ordinary  Course of Business"  means the  ordinary  course of business
consistent with past custom and practice (including with respect to quantity and
frequency).

         "Party" or "Parties" has the meaning set forth in the preface above.

         "Person"  means  an  individual,  a  partnership,  a  corporation,   an
association,  a joint stock company, a trust, a joint venture, an unincorporated
organization, or a governmental entity (or any department,  agency, or political
subdivision thereof).

         "Principal  Shareholders"  means  Andrew  Chiang,  Tieh-Shen  Wang  and
Dien-Yi Huang.

         "Purchase Price" has the meaning set forth in Section 2(c) below.

                                                                             E-2
<PAGE>

         "Registration  Rights  Agreement"  shall have the  meaning set forth in
Section 2(c)(i)

         "Securities Act" means the Securities Act of 1933, as amended.

         "Securities Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         "Security  Interest"  means any mortgage,  pledge,  lien,  encumbrance,
charge, or other security  interest,  other than (a) mechanic's,  materialmen's,
and similar  liens,  (b) liens for Taxes due and not yet  payable,  (c) purchase
money liens and liens securing rental payments under capital lease arrangements,
and (d) other liens arising in the Ordinary  Course of Business and not incurred
in connection with the borrowing of money.

         "Seller" has the meaning set forth in the preface above.

         "Seller Share" means any share of the capital stock of the Seller.

         "Seller  Shareholder"  means any person  who or which  holds any Seller
Shares.

         "Set Off Claim" has the meaning set forth in Section 7(f).

         "Tax"  means any  federal,  state,  local,  or  foreign  income,  gross
receipts,  license, payroll,  employment,  excise, severance, stamp, occupation,
premium,  windfall  profits,  environmental  (including taxes under Code Section
59A), customs duties, capital stock,  franchise,  profits,  withholding,  social
security  (or  similar),  unemployment,   disability,  real  property,  personal
property, sales, use, transfer, registration, value added, alternative or add-on
minimum, estimated, or other tax of any kind whatsoever, including any interest,
penalty, or addition thereto, whether disputed or not.

         "Tax Return" means any return,  declaration,  report, claim for refund,
or information return or statement relating to Taxes,  including any schedule or
attachment thereto, and including any amendment thereof.

         "Trading Price" has the meaning set forth in Section 2(c)(i) below.

                          ARTICLE 2 -- Basic Transaction.
                          -------------------------------

         2.1.1  Purchase  and Sale of  Assets.  On and  subject to the terms and
conditions of this Agreement,  the Buyer agrees to purchase from the Seller, and
the Seller agrees to sell,  transfer,  convey,  and deliver to the Buyer, all of
the Acquired Assets at the Closing for the consideration specified below in this
Section 2.

         2.1.2  Assumption  of  Liabilities.  On and  subject  to the  terms and
conditions of this Agreement,  the Buyer agrees to assume and become responsible
for all of the Assumed Liabilities at the Closing.  The Buyer will not assume or
have any  responsibility,  however,  with  respect  to any other  obligation  or
Liability  of  the  Seller  not  included   within  the  definition  of  Assumed
Liabilities.

                                                                             E-6
<PAGE>

         2.1.3 Purchase  Price.  The Buyer agrees to pay to the Seller the total
amount of $3,758,085 (the "Purchase  Price") for the Acquired Assets by delivery
of the following:

         (a) Gentner Shares. A number of shares of Buyer's  unregistered  common
stock (the "Gentner  Shares"),  equal to $2,000,000 in value. The Gentner Shares
shall be subject to the terms and conditions of that certain Registration Rights
Agreement,  substantially  in  the  form  of  Exhibit  F  attached  hereto  (the
"Registration Rights Agreement").  The number of Gentner Shares will be 123,381,
arrived  at by a  quotient,  the  numerator  of  which  is  2,000,000,  and  the
denominator of which is $16.21,  which is the average  closing price for the ten
(10) trading days between May 1, 2000 and May 10, 2000 (the "Trading Price"). In
the event that the average closing price during the ten (10) day period prior to
Closing  is (A) $17.02 or  higher,  or (B)  $15.40 or lower (in either  case the
"Adjusted   Trading  Price",   then  the  number  of  Gentner  Shares  shall  be
recalculated  using the  quotient  set  forth  above,  but  using  $17.02 as the
denominator (if the Adjusted  Trading Price is equal to or greater than $17.02),
or $15.40 as the denominator (if the Adjusted  Trading Price is equal to or less
than $15.40).  The Parties agree that a number of Gentner  Shares will be placed
in escrow (the  "Escrowed  Shares") with the Escrow Agent at the Closing,  to be
held pending the exercise of any Set-Off Claim by Buyer pursuant to Section 8(f)
below.  In the event the number of  Gentner  shares  delivered  to the Seller at
Closing is adjusted based upon the Adjusted  Trading Price,  the Escrowed Shares
shall be subject to a pro-rata  adjustment.  The parties  acknowledge that as of
the date hereof,  the Adjusted  Trading Price has been applied  resulting in the
number of Gentner  Shares  being  129,871,  of which  29,591 shall be deemed the
Escrowed Shares, as contemplated by this paragraph.

         (b) Cash Purchase Price. Cash in the total amount of $1,758,085,  which
shall be paid to the Seller as follows:

(i)             The Deposit.  $200,000 shall be paid to Seller as a deposit (the
"Deposit").  The parties  acknowledge  that the Seller has  received the Deposit
from the Buyer in connection with execution of a non-binding term sheet prior to
the  execution of this  Agreement.  The Deposit may be retained by Seller if the
Closing does not occur within a reasonable  time following July 3, 2000,  unless
such  failure to close (i) is caused by Seller,  or (ii) arises  from  Gentner's
discovery  during due  diligence of any lien,  encumbrance,  security  interest,
claim, license, grant, infringement of Seller's Intellectual Property rights, or
Seller's  infringement of the  Intellectual  Property rights of any third party,
which materially  adversely  affects the Acquired Assets (other than the Assumed
Liabilities, and those encumbrances or security interests which shall be paid or
terminated  prior to or at the Closing,  including  that certain Note,  Security
Agreement and Business Loan Agreement  between Seller and Gold Found Group dated
September  1, 1999 (the  "Gold  Found  Loan  Documents").  In the event that the
Closing has not  occurred as  specified  herein,  but Seller is not  entitled to
retain  the  Deposit,  it shall  immediately  return to Buyer the  amount of the
Deposit that is has received from Buyer. If Seller fails to return the amount of
the  Deposit  when  required  to do so by this  Section,  the  Deposit  shall be
converted into a secured loan in the amount of such Deposit, bearing interest at
the Applicable  Rate,  and Seller shall execute such loan  documents  reasonably
required by Buyer to perfect its  security  interest  in Seller's  assets.

                                                                             E-7
<PAGE>

(ii)            Escrowed  Amount.   Buyer  shall  wire  transfer  $100,000  (the
"Escrowed  Amount") to the Escrow Agent at the  Closing,  to be held pending the
exercise  of any Set Off Claim by Buyer  pursuant to Section  8(f) below.
(iii)           Cash at  Closing.  Buyer  shall wire  transfer $1,458,085 to the
Seller at the  Closing.

         2.1.4 The Closing. The closing of the transactions contemplated by this
Agreement  (the  "Closing")  shall  take  place via  Federal  Express,  or other
reputable overnight delivery service,  and telefax on July 5, 2000, or at a date
and location mutually agreed upon by the Parties.

         2.1.5  Deliveries at the Closing.  At the Closing,  (i) the Seller will
deliver  to the Buyer  the  various  certificates,  instruments,  and  documents
referred to in Section 6(a) below; (ii) the Buyer will deliver to the Seller the
various  certificates,  instruments,  and documents  referred to in Section 6(b)
below; (iii) the Seller will execute, acknowledge (if appropriate),  and deliver
to the Buyer such instruments of sale, transfer,  conveyance,  and assignment as
the Buyer and its counsel  reasonably may request;  (iv) the Buyer will execute,
acknowledge  (if  appropriate),  and deliver to the Seller such  instruments  of
assumption  as the Seller and its counsel  reasonably  may request;  and (v) the
Buyer  will  deliver  to the  Seller  and the  Escrow  Agent  the  consideration
specified in Section 2(c) above.

         2.1.6 Allocation. The Parties agree to allocate the Purchase Price (and
all other  capitalizable  costs)  among the  Acquired  Assets  for all  purposes
(including  financial  accounting  and tax  purposes)  in  accordance  with  the
allocation schedule, substantially in the form attached hereto as Exhibit C.

         2.1.7  Transfer of Gentner  Shares.  The Parties  acknowledge  that the
Seller may  transfer  the  Gentner  Shares to  certain  or all of the  Principal
Shareholders  following  the Closing.  Any such  transfer  shall comply with all
applicable  securities laws and regulations  applicable  thereto,  including any
applicable exemptions thereunder.

            ARTICLE 3 -- Representations and Warranties of the Seller.
            ----------------------------------------------------------

The Seller represents and warrants to the Buyer that the statements contained in
this  Section 3 are correct and  complete as of the date of this  Agreement  and
will be correct and  complete as of the Closing Date (as though made then and as
though  the  Closing  Date  were  substituted  for the  date  of this  Agreement
throughout  this  Section  3),  except as set forth in the  disclosure  schedule
accompanying  this  Agreement  and  initialed  by the Parties  (the  "Disclosure
Schedule"). The Disclosure Schedule will be arranged in paragraphs corresponding
to the lettered and numbered paragraphs contained in this Section 3.

         3.1.1  Organization  of the Seller.  The Seller is a  corporation  duly
incorporated,  validly  existing,  and in good  standing  under  the laws of the
jurisdiction of its incorporation. The Seller is qualified to do business and is
in good  standing  therein in those  jurisdictions  set forth on the  Disclosure
Schedule.

                                                                             E-8
<PAGE>

         3.1.2  Authorization  of  Transaction.  The  Seller  has full power and
authority  (including full corporate power and authority) to execute and deliver
this Agreement and to perform its obligations  hereunder.  Without  limiting the
generality of the foregoing, the board of directors of the Seller and the Seller
Shareholders  have duly authorized the execution,  delivery,  and performance of
this Agreement by the Seller.  This Agreement  constitutes the valid and legally
binding  obligation of the Seller,  enforceable in accordance with its terms and
conditions.

         3.1.3 Noncontravention.  Neither the execution and the delivery of this
Agreement,  nor  the  consummation  of  the  transactions   contemplated  hereby
(including the assignments and assumptions referred to in Section 2 above), will
(i) violate any constitution,  statute, regulation, rule, injunction,  judgment,
order,  decree,   ruling,  charge,  or  other  restriction  of  any  government,
governmental agency, or court to which the Seller is subject or any provision of
the charter or bylaws of the Seller or (ii)  conflict  with,  result in a breach
of,  constitute a default under,  result in the  acceleration  of, create in any
party the right to  accelerate,  terminate,  modify,  or cancel,  or require any
notice under any  agreement,  contract,  lease,  license,  instrument,  or other
arrangement  to which the  Seller is a party or by which it is bound or to which
any of its  assets is  subject  (or  result in the  imposition  of any  Security
Interest  upon any of its assets).  The Seller does not need to give any notice,
make any filing with, or obtain any authorization,  consent,  or approval of any
government or  governmental  agency in order for the Parties to  consummate  the
transactions  contemplated  by this  Agreement  (including the  assignments  and
assumptions referred to in Section 2 above).

         3.1.4  Brokers'  Fees. The Seller has no Liability or obligation to pay
any fees or  commissions  to any broker,  finder,  or agent with  respect to the
transactions  contemplated  by this  Agreement  for which the Buyer could become
liable or obligated.

         3.1.5 Title to Assets.  The Seller has good and marketable title to, or
a valid leasehold interest in, all of the Acquired Assets, free and clear of any
Security  Interest  or  restriction  on  transfer,  except  as set  forth on the
Disclosure Schedule.

         3.1.6 Subsidiaries. The Seller has no Subsidiaries.

         3.1.7  Financial   Statements.   The  following  financial   statements
(collectively  the "Financial  Statements")  will be attached hereto a Exhibit D
prior to the  Closing:  (i) audited  balance  sheets and  statements  of income,
changes in  stockholders'  equity,  and cash flow as of and for the fiscal  year
ended April 30, 1998, (ii) draft unaudited balance sheets, statements of income,
changes in  stockholders'  equity,  and cash flows as of and for the fiscal year
ended April 30,  1999 for the Seller,  and (iii)  unaudited  balance  sheets and
statements of income,  changes in stockholders' equity, and cash flow (the "Most
Recent Financial Statements") as of and for the period ended April 30, 2000 (the
"Most  Recent  Fiscal  Year  End")  for the  Seller.  The  Financial  Statements
(including the notes thereto) have been prepared in accordance with GAAP applied
on a consistent basis throughout the periods covered thereby, present fairly the
financial condition of the Seller as of such dates and the results of operations
of the Seller for such  periods,  are correct and complete,  and are  consistent
with the books and  records of the Seller  (which  books and records are correct
and complete);  provided, however, that the Most Recent Financial Statements are
subject to year-end adjustments.

                                                                             E-9
<PAGE>

         3.1.8 Events  Subsequent to Most Recent Fiscal Year End. Since the Most
Recent Fiscal Year End,  there has not been any material  adverse  change in the
business,  financial  condition,  operations,  results of operations,  or future
prospects of the Seller. Without limiting the generality of the foregoing, since
that date:

         (a) the Seller has not sold,  leased,  transferred,  or assigned any of
its assets,  tangible or intangible,  other than for a fair consideration in the
Ordinary Course of Business;

         (b) the Seller has not entered into any agreement,  contract, lease, or
license  (or series of related  agreements,  contracts,  leases,  and  licenses)
either involving more than $10,000 or outside the Ordinary Course of Business;

         (c) no  party  (including  the  Seller)  has  accelerated,  terminated,
modified, or canceled any agreement,  contract,  lease, or license (or series of
related agreements, contracts, leases, and licenses) involving more than $10,000
to which the Seller is a party or by which any of them is bound;

         (d) the Seller has not imposed any  Security  Interest  upon any of its
assets, tangible or intangible;

         (e) the  Seller  has not made any  capital  expenditure  (or  series of
related capital  expenditures) either involving more than $10,000 or outside the
Ordinary Course of Business;

         (f) the Seller has not made any capital  investment in, any loan to, or
any  acquisition  of the securities or assets of, any other Person (or series of
related capital investments, loans, and acquisitions) either involving more than
$10,000 or outside the Ordinary Course of Business;

         (g) the Seller has not issued any note, bond, or other debt security or
created, incurred, assumed, or guaranteed any indebtedness for borrowed money or
capitalized lease obligation either involving more than $1,000 singly or $10,000
in the aggregate;

         (h) the Seller has not  delayed or  postponed  the  payment of accounts
payable and other Liabilities outside the Ordinary Course of Business;

         (i) the Seller has not canceled,  compromised,  waived, or released any
right or claim (or series of related  rights and claims)  either  involving more
than $1,000 or outside the Ordinary Course of Business;

         (j) the Seller has not granted any license or  sublicense of any rights
under or with respect to any Intellectual Property;

         (k) there has been no  change  made or  authorized  in the  charter  or
bylaws of any of the Seller;

                                                                            E-10
<PAGE>

         (l) the Seller has not issued,  sold,  or otherwise  disposed of any of
its capital stock, or granted any options, warrants, or other rights to purchase
or obtain (including upon conversion,  exchange, or exercise) any of its capital
stock;

         (m) the Seller has not  declared,  set aside,  or paid any  dividend or
made any  distribution  with respect to its capital stock (whether in cash or in
kind) or redeemed, purchased, or otherwise acquired any of its capital stock;

         (n) the Seller has not experienced any material damage, destruction, or
loss (whether or not covered by insurance) to its property;

         (o) the  Seller  has not made any loan to,  or  entered  into any other
transaction  with, any of its  directors,  officers,  and employees  outside the
Ordinary Course of Business;

         (p) except for those  disclosed to the Buyer  during the due  diligence
period,  the Seller has not entered into any  employment  contract or collective
bargaining  agreement,  written or oral,  or modified  the terms of any existing
such contract or agreement outside the Ordinary Course of Business;

         (q) reserved;

         (r) the Seller has not adopted,  amended,  modified,  or terminated any
bonus,  profit-sharing,  incentive,  severance,  or  other  plan,  contract,  or
commitment for the benefit of any of its directors,  officers, and employees (or
taken any such action with respect to any other Employee Benefit Plan);

         (s) the Seller has not made or pledged to make any  charitable or other
capital contribution outside the Ordinary Course of Business;

         (t) there has not been any other material occurrence,  event, incident,
action,  failure to act, or transaction  outside the Ordinary Course of Business
involving the Seller; and

         (u) the Seller has not committed to any of the foregoing.

         3.1.9 Undisclosed Liabilities.  The Seller has no Liability (and to the
Knowledge  of Seller there is no Basis for any present or future  action,  suit,
proceeding, hearing, investigation,  charge, complaint, claim, or demand against
any of them giving rise to any Liability),  except for (i) Liabilities set forth
on the face of the Most Recent  Balance Sheet (rather than in any notes thereto)
and (ii) Liabilities which have arisen after the Most Recent Fiscal Month End in
the Ordinary  Course of Business  (none of which  results  from,  arises out of,
relates to, is in the nature of, or was caused by any breach of contract, breach
of warranty, tort, infringement, or violation of law).

         3.1.10 Legal  Compliance.  The Seller has materially  complied with all
applicable  laws  (including  rules,  regulations,  codes,  plans,  injunctions,
judgments,  orders, decrees, rulings, and charges thereunder) of federal, state,
local, and foreign governments (and all agencies thereof),  and no action, suit,
proceeding, hearing, investigation,  charge, complaint, claim, demand, or notice
has been filed or  commenced  against  any of them  alleging  any  failure so to
comply.

                                                                            E-11
<PAGE>

         3.1.11 Tax Matters.

         (a) The Seller has filed all Tax Returns  that it was required to file.
All such Tax Returns  were  correct and  complete in all  respects.  All accrued
Taxes due from the Seller  (whether  or not shown on any Tax  Return)  have been
paid.  The Seller  currently  is not the  beneficiary  of any  extension of time
within which to file any Tax Return. No claim has ever been made by an authority
in a  jurisdiction  where the Seller does not file Tax Returns that it is or may
be subject to taxation by that jurisdiction.  There are no Security Interests on
any of the assets of the Seller  that arose in  connection  with any failure (or
alleged failure) to pay any Tax.

         (b) The Seller has  withheld  and paid all Taxes  required to have been
withheld  and paid by Seller in  connection  with  amounts  paid or owing to any
employee, independent contractor, creditor, stockholder, or other third party.

         (c) To the  Knowledge  of  the  Seller,  no  Principal  Shareholder  or
director  or officer (or  employee  responsible  for Tax  matters) of the Seller
expects any  authority to assess any  additional  Taxes for any period for which
Tax Returns  have been filed.  There is no dispute or claim  concerning  any Tax
Liability of the Seller either (A) claimed or raised by any authority in writing
or (B) as to which  any of the  Principal  Shareholders  and the  directors  and
officers (and employees responsible for Tax matters) of the Seller has Knowledge
based upon personal  contact with any agent of such  authority.  Section 3(k) of
the Disclosure Schedule lists all federal,  state, local, and foreign income Tax
Returns  filed with  respect to the Seller for taxable  periods from May 7, 1997
through the present,  indicates  those Tax Returns that have been  audited,  and
indicates those Tax Returns that currently are the subject of audit.  The Seller
has  delivered  to the Buyer  correct and complete  copies of all filed  federal
income Tax Returns, examination reports, and statements of deficiencies assessed
against or agreed to by the Seller since May 7, 1997.

         (d) The Seller has not waived any statute of  limitations in respect of
Taxes or agreed to any  extension  of time with respect to a Tax  assessment  or
deficiency.

         (e) The unpaid  Taxes of the Seller (A) did not,  as of the Most Recent
Fiscal Month End, exceed the reserve for Tax Liability  (rather than any reserve
for deferred Taxes  established to reflect timing  differences  between book and
Tax income) set forth on the face of the Most Recent  Balance Sheet (rather than
in any notes  thereto)  and (B) do not exceed that  reserve as adjusted  for the
passage of time through the Closing Date in accordance  with the past custom and
practice of the Seller in filing its Tax Returns.

         (f) None of the Assumed  Liabilities is an obligation to make a payment
that will not be deductible under Code Section 280G. The Seller has disclosed on
its federal income Tax Returns all positions  taken therein that could give rise
to a substantial understatement of federal income Tax within the meaning of Code
Section  6662.  The  Seller  is not a party  to any Tax  allocation  or  sharing
agreement.  The Seller (A) has not been a member of an Affiliated Group filing a
consolidated  federal income Tax Return (other than a group the common parent of

                                                                            E-12
<PAGE>

which was the  Seller)  and (B) has no  Liability  for the  Taxes of any  Person
(other than the Seller) under Reg. Section 1.1502-6 (or any similar provision of
state,  local,  or foreign law), as a transferee or successor,  by contract,  or
otherwise.

         3.1.12 Real Property.

         (a) The Seller owns no real property.

         (b) Section  3(l)(ii) of the  Disclosure  Schedule  lists and describes
briefly all real  property  leased or  subleased  to the Seller.  The Seller has
delivered to the Buyer  correct and complete  copies of the leases and subleases
listed in Section 3(l)(ii) of the Disclosure Schedule (as amended to date). With
respect to each lease and sublease listed in Section  3(l)(ii) of the Disclosure
Schedule:

(i)                     the  lease  or  sublease  is  legal,   valid,   binding,
enforceable, and in full force and effect;
(ii)                    rovided   that consent to  assignment  has been properly
obtained by Seller and Buyer,  the lease or sublease  will continue to be legal,
valid,  binding,  enforceable,  and in full force and effect on identical  terms
following the consummation of the transactions  contemplated  hereby  (including
the assignments and assumptions  referred to in Section 2 above);
(iii)                   no party to  the  lease  or  sublease  is  in  breach or
default,  and no event has occurred which,  with notice or lapse of time,  would
constitute  a  breach  or  default  or  permit  termination,   modification,  or
acceleration thereunder;
(iv)                    no party  to  the lease or sublease has  repudiated  any
provision  thereof;
(v)                     there are no disputes,  oral agreements,  or forbearance
programs in effect as to the lease or sublease;
(vi)                    with respect to each  sublease,  to the Knowledge of the
Seller, the  representations and warranties set forth in subsections (A) through
(E) above are true and correct with respect to the underlying lease;
(vii)                   the  Seller  has  not assigned,  transferred,  conveyed,
mortgaged,  deeded in trust,  or  encumbered  any  interest in the  leasehold or
subleasehold;
(viii)                  to the Knowledge of the Seller,  all  facilities  leased
or subleased thereunder have received all approvals of governmental  authorities
(including  licenses  and permits)  required in  connection  with the  operation
thereof and have been  operated and  maintained in  accordance  with  applicable
laws, rules, and regulations;
(ix)                    all  facilities  leased  or  subleased   thereunder  are
supplied with utilities and other  services  necessary for the operation of said
facilities  in the manner and for the purposes they have been used by the Seller
in its Ordinary Course of Business.

         3.1.13 Intellectual Property.

         (a) The  Seller  owns or has the  right  to use  pursuant  to  license,
sublicense,  agreement,  or permission all  Intellectual  Property  necessary or
desirable  for the  operation  of the  businesses  of the  Seller  as  presently
conducted and as presently  proposed to be conducted.  Each item of Intellectual
Property  owned or used by any of the Seller  immediately  prior to the  Closing
hereunder will be owned or available for use by the Buyer on identical terms and
conditions immediately subsequent to the Closing hereunder. The Seller has taken
all reasonably necessary and desirable actions to maintain and protect each item
of Intellectual Property that it owns or uses.

                                                                            E-13
<PAGE>

         (b) To the knowledge of the Seller, the Seller has not interfered with,
infringed  upon,  misappropriated,  or  otherwise  come into  conflict  with any
Intellectual  Property rights of third parties,  and to the Seller,  none of the
Principal  Shareholders  and the  directors  and officers  (and  employees  with
responsibility  for  Intellectual  Property  matters)  of the  Seller  has  ever
received  any charge,  complaint,  claim,  demand,  or notice  alleging any such
interference, infringement,  misappropriation, or violation (including any claim
that any of the  Seller  must  license or  refrain  from using any  Intellectual
Property  rights of any third party).  To the Knowledge of the Seller,  no third
party has interfered with,  infringed upon,  misappropriated,  or otherwise come
into conflict with any Intellectual Property rights of the Seller.

         (c) Section 3(m)(iii) of the Disclosure Schedule identifies each patent
or  registration  which has been issued to the Seller with respect to any of its
Intellectual Property, identifies each pending patent application or application
for  registration  which  the  Seller  has  made  with  respect  to  any  of its
Intellectual  Property,  and  identifies  each  license,   agreement,  or  other
permission  which the Seller has granted to any third party with  respect to any
of its  Intellectual  Property  (together with any  exceptions).  The Seller has
delivered  to the  Buyer  correct  and  complete  copies  of all  such  patents,
registrations,  applications,  licenses, agreements, and permissions (as amended
to date) and has made available to the Buyer correct and complete  copies of all
other written documentation evidencing ownership and prosecution (if applicable)
of each such item. Section 3(m)(iii) of the Disclosure  Schedule also identifies
each trade name or unregistered  trademark used by the Seller in connection with
any of its  businesses.  With  respect  to each  item of  Intellectual  Property
required to be identified in Section 3(m)(iii) of the Disclosure Schedule:

(i)                     the Seller  possesses all right,  title, and interest in
and to the item,  free and clear of any  Security  Interest,  license,  or other
restriction;
(ii)                    the item  is  not subject to any outstanding injunction,
judgment,  order, decree, ruling, or charge;
(iii)                   no action,  suit,  proceeding,  hearing,  investigation,
charge,  complaint,  claim,  or demand is pending  or, to the  Knowledge  of the
Seller, is threatened which challenges the legality,  validity,  enforceability,
use, or ownership of the item; and
(iv)                    the Seller has not ever agreed to indemnify  any  Person
for or  against  any  interference,  infringement,  misappropriation,  or  other
conflict with respect to the item.

         (d) Section 3(m)(iv) of the Disclosure Schedule identifies each item of
Intellectual  Property  that any  third  party  owns and  that the  Seller  uses
pursuant  to  license,  sublicense,  agreement,  or  permission.  The Seller has
delivered  to the  Buyer  correct  and  complete  copies  of all such  licenses,
sublicenses,  agreements,  and permissions (as amended to date). With respect to
each item of Intellectual Property required to be identified in Section 3(m)(iv)
of the Disclosure Schedule:

                        the  license,  sublicense,   agreement,   or  permission
covering the item is  legal, valid, binding,  enforceable, and in full force and
effect;

                                                                            E-14
<PAGE>

(ii)                    provided  that  consent for assignment has been obtained
by Seller and Buyer,  the license,  sublicense,  agreement,  or permission  will
continue to be legal, valid, binding,  enforceable, and in full force and effect
on identical terms following the consummation of the  transactions  contemplated
hereby  (including  the  assignments  and  assumptions  referred to in Section 2
above);
(iii)                   no  party  to  the  license, sublicense,  agreement,  or
permission is in breach or default,  and no event has occurred which with notice
or lapse of time would  constitute  a breach or  default or permit  termination,
modification, or acceleration thereunder;
(iv)                    no  party to  the  license,  sublicense,  agreement,  or
permission  has  repudiated  any provision thereof;
(v)                     with respect to each sublicense, to the Knowledge of the
Seller, the  representations and warranties set forth in subsections (A) through
(D) above are true and correct with respect to the underlying license;
(vi)                    the  underlying  item of  Intellectual  Property  is not
subject to any outstanding  injunction,  judgment,  order,  decree,  ruling,  or
charge;
(vii)                   no action,  suit,  proceeding,  hearing,  investigation,
charge,  complaint,  claim,  or demand is pending  or, to the  Knowledge  of the
Seller, is threatened which challenges the legality, validity, or enforceability
of the underlying item of Intellectual Property; and
(viii)                  the  Seller  has  not  granted any sublicense or similar
right with respect to the license, sublicense,  agreement, or permission.

         3.1.14 Tangible  Assets.  Each item of the Acquired Assets is free from
defects  (patent and latent),  has been  maintained  in  accordance  with normal
industry practice,  is in good operating condition and repair (subject to normal
wear and tear),  and is suitable for the purposes for which it presently is used
and presently is proposed to be used.

         3.1.15 Inventory. The Inventory of the Seller consists of raw materials
and supplies,  manufactured and purchased parts, goods in process,  and finished
goods,  all of which is  merchantable  and fit for the  purpose for which it was
procured or manufactured,  and none of which is slow-moving,  obsolete, damaged,
or defective,  subject only to the reserve for inventory  writedown set forth on
the face of the Most Recent  Balance Sheet (rather than in any notes thereto) as
adjusted for the passage of time through the Closing Date in accordance with the
past custom and practice of the Seller.

         3.1.16  Contracts.  Section 3(p) of the  Disclosure  Schedule lists the
following contracts and other agreements to which the Seller is a party:

         (a) any  agreement  (or group of related  agreements)  for the lease of
personal  property to or from any Person  providing for lease payments in excess
of $5,000 per annum;

         (b) any agreement (or group of related  agreements) for the purchase or
sale of raw  materials,  commodities,  supplies,  products,  or  other  personal
property, or for the furnishing or receipt of services, the performance of which
will  extend over a period of more than one year,  result in a material  loss to
the Seller, or involve consideration in excess of $1,000;

         (c) any  agreement  concerning a  partnership  or joint  venture of the
Seller;

                                                                            E-15
<PAGE>

         (d) any agreement (or group of related  agreements)  under which it has
created,  incurred,  assumed, or guaranteed any indebtedness for borrowed money,
or any capitalized lease  obligation,  in excess of $1,000 or under which it has
imposed a Security Interest on any of its assets, tangible or intangible;

         (e) any agreement concerning confidentiality or noncompetition;

         (f) any  agreement  with the Seller as a party and involving any of the
Principal Shareholders and their Affiliates (other than the Seller);

         (g)  any  profit  sharing,   stock  option,   stock   purchase,   stock
appreciation,  deferred  compensation,  severance,  or  other  material  plan or
arrangement for the benefit of its current or former  directors,  officers,  and
employees;

         (h) any collective bargaining agreement;

         (i) any agreement for the  employment of any individual on a full-time,
part-time, consulting, or other basis providing annual compensation in excess of
$30,000 or providing severance benefits;

         (j) any  agreement  under which it has advanced or loaned any amount to
any of its directors,  officers,  and employees  outside the Ordinary  Course of
Business;

         (k)  any  agreement  under  which  the  consequences  of a  default  or
termination  could have a material  adverse  effect on the  business,  financial
condition, operations, results of operations, or future prospects of the Seller;
or

         (l)  any  other   agreement  (or  group  of  related   agreements)  the
performance of which involves consideration in excess of $10,000.

         The Seller has  delivered to the Buyer a correct and  complete  copy of
each written  agreement  listed in Section 3(p) of the  Disclosure  Schedule (as
amended to date) and a written summary setting forth the terms and conditions of
each oral agreement referred to in Section 3(p) of the Disclosure Schedule. With
respect to each such  agreement:  (A) the  agreement is legal,  valid,  binding,
enforceable, and in full force and effect; (B) the agreement will continue to be
legal, valid,  binding,  enforceable,  and in full force and effect on identical
terms  following  the  consummation  of  the  transactions  contemplated  hereby
(including the assignments and assumptions  referred to in Section 2 above); (C)
no party is in breach or default, and no event has occurred which with notice or
lapse of time  would  constitute  a breach or  default,  or permit  termination,
modification,  or  acceleration,  under  the  agreement;  and (D) no  party  has
repudiated any provision of the agreement.

         3.1.17  Compliance  Testing.  Section 3(q) of the  Disclosure  Schedule
identifies each U.S. and non-U.S.  industry  organization  that has certified or
approved  any of the Acquired  Assets,  and copies of such  approvals  have been
delivered to the Buyer (collectively, the "Compliance Certificates").

                                                                            E-16
<PAGE>

         3.1.18 Powers of Attorney.  There are no outstanding powers of attorney
executed on behalf of the Seller.

         3.1.19 Reserved.

         3.1.20 Litigation.  Section 3(t) of the Disclosure  Schedule sets forth
each instance in which the Seller (i) is subject to any outstanding  injunction,
judgment,  order,  decree,  ruling,  or  charge  or (ii) is a party  or,  to the
Knowledge of the Seller,  is threatened to be made a party to any action,  suit,
proceeding,   hearing,   or  investigation  of,  in,  or  before  any  court  or
quasi-judicial or administrative agency of any federal, state, local, or foreign
jurisdiction or before any arbitrator.  None of the actions, suits, proceedings,
hearings,  and  investigations  set  forth  in  Section  3(t) of the  Disclosure
Schedule could result in any material adverse change in the business,  financial
condition, operations, results of operations, or future prospects of the Seller.

         3.1.21 Product Warranty.  Each product  manufactured,  sold, leased, or
delivered by the Seller has been in conformity  with all applicable  contractual
commitments  and all  express  and  implied  warranties,  and the  Seller has no
Liability (and to the Knowledge of the Seller, there is no Basis for any present
or future action, suit, proceeding, hearing,  investigation,  charge, complaint,
claim,  or  demand  against  any of  them  giving  rise  to any  Liability)  for
replacement or repair thereof or other damages in connection therewith,  subject
only to the  reserve for  product  warranty  claims set forth on the face of the
Most Recent Balance Sheet. No product  manufactured,  sold, leased, or delivered
by any of the Seller is subject to any guaranty,  warranty,  or other  indemnity
beyond the applicable  standard  terms and conditions of sale or lease.  Section
3(u) of the  Disclosure  Schedule  includes  copies  of the  standard  terms and
conditions  of sale or  lease  for  each of the  Seller  (containing  applicable
guaranty, warranty, and indemnity provisions).

         3.1.22  Product  Liability.  The  Seller has no  Liability  (and to the
Knowledge  of the Seller,  there is no Basis for any  present or future  action,
suit, proceeding,  hearing,  investigation,  charge, complaint, claim, or demand
against any of them giving rise to any  Liability)  arising out of any injury to
individuals or property as a result of the ownership,  possession, or use of any
product manufactured, sold, leased, or delivered by the Seller.

         3.1.23  Employees.  To the Knowledge of the Seller,  no executive,  key
employee,  or group of employees has any plans to terminate  employment with the
Seller.  The  Seller  is not a party to or bound  by any  collective  bargaining
agreement,  nor has it  experienced  any strikes,  grievances,  claims of unfair
labor practices,  or other collective  bargaining  disputes.  The Seller has not
committed  any  unfair  labor  practice.  The  Seller  has no  Knowledge  of any
organizational  effort presently being made or threatened by or on behalf of any
labor union with respect to employees  of the Seller.  Schedule  3(w) lists each
current and former employee of the Seller since January 1, 1995.

         3.1.24  Employee  Benefits.  Seller is in compliance with each Employee
Benefit  Plan that it  maintains,  and each such plan  complies in all  material
respects with applicable laws.

         3.1.25 Guaranties. The Seller is not a guarantor or otherwise is liable
for any Liability or obligation (including indebtedness) of any other Person.

                                                                            E-17
<PAGE>

         3.1.26 Environmental, Health, and Safety Matters.

         (a) To the Knowledge of the Seller, the Seller has materially  complied
and is in  material  compliance  with  all  Environmental,  Health,  and  Safety
Requirements.

         (b) Without limiting the generality of the foregoing,  to the Knowledge
of the Seller,  the Seller has obtained and is in material  compliance  with all
permits,  licenses  and  other  authorizations  that are  required  pursuant  to
Environmental,  Health,  and  Safety  Requirements  for  the  occupation  of its
facilities  and the  operation  of its  business;  a list of all  such  permits,
licenses and other  authorizations  is set forth on the attached  "Environmental
and Safety Permits Schedule."

         (c) The Seller has not received  any written or oral notice,  report or
other  information  regarding any actual or alleged  violation of Environmental,
Health,  and Safety  Requirements,  or any liabilities or potential  liabilities
(whether accrued, absolute,  contingent,  unliquidated or otherwise),  including
any investigatory,  remedial or corrective obligations,  relating to any of them
or its facilities arising under Environmental, Health, and Safety Requirements.

         (d) To the Knowledge of the Seller, none of the following exists at any
property or facility owned or operated by the Seller:  (1)  underground  storage
tanks, (2) asbestos-containing  material in any form or condition, (3) materials
or equipment containing  polychlorinated  biphenyls, or (4) landfills or surface
impoundments.

         (e) To the Knowledge of the Seller, the Seller has not treated, stored,
disposed of, arranged for or permitted the disposal of, transported, handled, or
released any hazardous substance,  or owned or operated any property or facility
in a manner that has given or would give rise to liability  for response  costs,
corrective  action costs,  personal injury,  property damage,  natural resources
damages or attorney fees, pursuant to the Comprehensive  Environmental Response,
Compensation and Liability Act of 1980, as amended  ("CERCLA"),  the Solid Waste
Disposal Act, as amended ("SWDA") or any other Environmental, Health, and Safety
Requirements.

         (f)  To the  Knowledge  of the  Seller,  the  Seller  has  not,  either
expressly or by operation of law, assumed or undertaken any liability, including
without  limitation any obligation  for  corrective or remedial  action,  of any
other Person relating to Environmental, Health, and Safety Requirements.

         (g) To the  Knowledge  of the Seller,  no facts,  events or  conditions
relating to the past or present  facilities,  properties  or  operations  of the
Seller will prevent,  hinder or limit continued  compliance with  Environmental,
Health, and Safety  Requirements,  give rise to any  investigatory,  remedial or
corrective   obligations   pursuant  to   Environmental,   Health,   and  Safety
Requirements,  or give rise to any other liabilities (whether accrued, absolute,
contingent,  unliquidated or otherwise)  pursuant to Environmental,  Health, and
Safety  Requirements,  including  without  limitation  any relating to onsite or
offsite releases or threatened  releases of hazardous  materials,  substances or
wastes, personal injury, property damage or natural resources damage.

                                                                            E-18
<PAGE>

         3.1.27  Certain  Business  Relationships  With the Seller.  None of the
Principal  Shareholders  and their  Affiliates has been involved in any business
arrangement or relationship with the Seller within the past 12 months,  and none
of the Principal  Shareholders and their Affiliates owns any asset,  tangible or
intangible, which is used in the business of the Seller.

         3.1.28 Disclosure. The representations and warranties contained in this
Section 3 do not  contain  any untrue  statement  of a material  fact or omit to
state  any  material  fact  necessary  in  order  to  make  the  statements  and
information contained in this Section 3 not misleading.

         3.1.29  Investment.  The Seller (i) understands that the Gentner Shares
have not been, and will not be,  registered  under the Securities  Act, or under
any state  securities  laws,  and are being  offered and sold in  reliance  upon
federal and state exemptions for transactions not involving any public offering,
(ii) is acquiring the Gentner  Shares solely for its own account for  investment
purposes,  and not with a view to the  distribution  thereof,  provided that the
Seller may  distribute  some or all of the Gentner  Shares to one or more of its
current Shareholders consistent with the provisions of this Agreement,  (iii) is
a sophisticated investor with knowledge and experience in business and financial
matters, (iv) has received certain information  concerning the Buyer and has had
the opportunity to obtain additional information as desired in order to evaluate
the merits and the risks inherent in holding the Gentner Shares,  (v) is able to
bear the  economic  risk and lack of  liquidity  inherent in holding the Gentner
Shares, and (vi) is an Accredited Investor.

           ARTICLE 4 -- Representations and Warranties of the Buyer.
           ---------------------------------------------------------

The Buyer represents and warrants to the Seller that the statements contained in
this  Section 4 are correct and  complete as of the date of this  Agreement  and
will be correct and  complete as of the Closing Date (as though made then and as
though  the  Closing  Date  were  substituted  for the  date  of this  Agreement
throughout this Section 4), except as set forth in the Disclosure Schedule.  The
Disclosure Schedule will be arranged in paragraphs corresponding to the lettered
and numbered paragraphs contained in this Section 4.

         4.1.1  Organization  of the  Buyer.  The  Buyer is a  corporation  duly
organized,  validly  existing,  and in  good  standing  under  the  laws  of the
jurisdiction of its incorporation.

         4.1.2  Capitalization;  Gentner Shares. The authorized capital stock of
the Buyer  consists of 50,000,000  shares of common  stock,  par value $.001 per
share.  As of June 1, 2000,  8,417,038  shares of common  stock were  issued and
outstanding, all of which were validly issued, fully paid and nonassessable, and
no shares of common  stock  were held in  treasury.  The  Gentner  Shares,  when
delivered  at the  Closing,  shall have been duly  authorized,  fully paid,  and
nonassessable.

         4.1.3  Authorization  of  Transaction.  The  Buyer  has full  power and
authority  (including full corporate power and authority) to execute and deliver

                                                                            E-19
<PAGE>

this  Agreement  and  to  perform  its  obligations  hereunder.  This  Agreement
constitutes the valid and legally binding  obligation of the Buyer,  enforceable
in accordance with its terms and conditions.

         4.1.4 Noncontravention.  Neither the execution and the delivery of this
Agreement,  nor  the  consummation  of  the  transactions   contemplated  hereby
(including the assignments and assumptions referred to in Section 2 above), will
(i) violate any constitution,  statute, regulation, rule, injunction,  judgment,
order,  decree,   ruling,  charge,  or  other  restriction  of  any  government,
governmental  agency, or court to which the Buyer is subject or any provision of
its charter or bylaws or (ii) conflict with, result in a breach of, constitute a
default under,  result in the  acceleration of, create in any party the right to
accelerate,  terminate,  modify,  or  cancel,  or require  any notice  under any
agreement,  contract, lease, license,  instrument, or other arrangement to which
the  Buyer is a party or by which it is bound or to which  any of its  assets is
subject. The Buyer does not need to give any notice to, make any filing with, or
obtain any authorization, consent, or approval of any government or governmental
agency in order for the Parties to consummate the  transactions  contemplated by
this Agreement (including the assignments and assumptions referred to in Section
2 above).

         4.1.5  Brokers'  Fees.  The Buyer has no Liability or obligation to pay
any fees or  commissions  to any broker,  finder,  or agent with  respect to the
transactions  contemplated  by this  Agreement for which the Seller could become
liable or obligated.

                      ARTICLE 5 -- Pre-Closing Covenants.
                      -----------------------------------

The Parties agree as follows with respect to the period between the execution of
this Agreement and the Closing.

         5.1.1  General.  Each of the Parties  will use its best efforts to take
all action  and to do all  things  necessary  or proper to  consummate  and make
effective  the   transactions   contemplated   by  this   Agreement   (including
satisfaction, of the closing conditions set forth in Section 6 below).

         5.1.2 Notices and  Consents.  The Seller will give any notices to third
parties, and the Seller will use its reasonable best efforts to obtain any third
party  consents,  that the Buyer may  request  in  connection  with the  matters
referred to in Section 3(c) above. Each of the Parties will give any notices to,
make any  filings  with,  and use its  reasonable  best  efforts  to obtain  any
authorizations, consents, and approvals of governments and governmental agencies
in  connection  with the matters  referred to in Section  3(c) and Section  4(c)
above.

         5.1.3  Operation  of  Business.  The  Seller  will  not  engage  in any
practice,  take any action,  or enter into any transaction  outside the Ordinary
Course of Business.  Without  limiting the generality of the foregoing,  without
the prior  written  consent of the Buyer,  the Seller will not (i) declare,  set
aside, or pay any dividend or make any distribution  with respect to its capital
stock or redeem,  purchase,  or otherwise  acquire any of its capital stock,  or
(ii)  otherwise  engage in any  practice,  take any  action,  or enter  into any
transaction of the sort described in Section 3(h) above.

                                                                            E-20
<PAGE>

         5.1.4  Preservation of Business.  The Seller will keep its business and
properties  substantially  intact,  including its present  operations,  physical
facilities,  working  conditions,  and  relationships  with lessors,  licensors,
suppliers, customers, and employees.

         5.1.5 Full Access. The Seller will permit  representatives of the Buyer
to have  full  access  at all  reasonable  times,  and in a manner  so as not to
interfere with the normal  business  operations of the Seller,  to all premises,
properties,  personnel,  books, records (including Tax records),  contracts, and
documents of or pertaining to the Seller.

         5.1.6  Notice of  Developments.  Each  Party will give  prompt  written
notice to the other Party of any material adverse  development  causing a breach
of any of its own  representations  and  warranties  in Section 3 and  Section 4
above. No disclosure by any Party pursuant to this Section 5(f), however,  shall
be deemed to amend or supplement the  Disclosure  Schedule or to prevent or cure
any  misrepresentation,  breach of warranty,  or breach of covenant  without the
written consent of the other Party.

         5.1.7  Exclusivity.  The  Seller,  on behalf of itself,  its  officers,
directors,  shareholders,  attorneys,  and advisor,  together with the Principal
Shareholders,  agrees not to (i) solicit,  initiate, or encourage the submission
of any  proposal  or offer from any Person  relating to the  acquisition  of any
capital  stock or other voting  securities,  or any  substantial  portion of the
assets,  of the  Seller  (including  any  acquisition  structured  as a  merger,
consolidation,  or share exchange); or (ii) participate other than with Buyer in
any discussions or negotiations regarding,  furnish any information with respect
to,  assist or  participate  in, or facilitate in any other manner any effort or
attempt by any Person to do or seek any of the  foregoing,  pending the Closing.
The Seller will notify the Buyer  immediately  if any Person makes any proposal,
offer,  inquiry,  or contact with respect to any of the  foregoing  prior to the
Closing.

                 ARTICLE 6 -- Conditions to Obligation to Close.
                 -----------------------------------------------

         6.1.1  Conditions  to Obligation  of the Buyer.  The  obligation of the
Buyer to consummate the  transactions  to be performed by it in connection  with
the Closing is subject to satisfaction of the following conditions:

         (a) the  representations  and  warranties  set forth in Section 3 above
shall be true and  correct in all  material  respects  at and as of the  Closing
Date;

         (b) the  Seller  shall  have  performed  and  complied  with all of its
covenants hereunder in all material respects through the Closing;

         (c) the Seller  shall have  procured  all of the third  party  consents
specified in Section 5(b);

         (d) no material  adverse  change,  financial or  otherwise,  shall have
occurred in the condition of Seller,  Seller's business, or the Acquired Assets,
including  without  limitation  any  action,  suit,  or  proceeding  pending  or
threatened before any court or  quasi-judicial  or administrative  agency of any

                                                                            E-21
<PAGE>

federal,  state, local, or foreign jurisdiction or before any arbitrator wherein
an unfavorable injunction,  judgment, order, decree, ruling, or charge would (A)
prevent consummation of any of the transactions  contemplated by this Agreement,
(B) cause any of the transactions contemplated by this Agreement to be rescinded
following  consummation,  or (C) affect  adversely the right of the Buyer to own
the Acquired Assets,  and to operate the former businesses of the Seller (and no
such injunction, judgment, order, decree, ruling, or charge shall be in effect);

         (e) the Seller shall have  delivered to the Buyer a certificate  to the
effect that each of the conditions  specified above in Section  6(a)(i)-(iii) is
satisfied in all respects;

         (f)  the  Seller  and  the  Buyer   shall  have   received   all  other
authorizations, consents, and approvals of governments and governmental agencies
referred to in Section 3(c) and Section 4(c) above;

         (g) the Buyer shall not have discovered  during due diligence any lien,
encumbrance,  security interest,  claim, license, grant, infringement of Buyer's
Intellectual  Property  rights,  or  Buyer's  infringement  of the  Intellectual
Property  rights of any third  party,  which  materially  adversely  affects the
Acquired Assets (except for the Assumed  Liabilities,  and those encumbrances or
security interests which shall be paid or terminated prior to or at the Closing,
including the Gold Found Loan Documents).

         (h) the  Buyer  shall  have  received  from  counsel  to the  Seller an
opinion,  substantially  in the form as set forth in Exhibit E attached  hereto,
addressed to the Buyer, and dated as of the Closing Date;

         (i)  all  actions  to  be  taken  by  the  Seller  in  connection  with
consummation  of the  transactions  contemplated  hereby  and all  certificates,
opinions,  instruments,  and other documents required to effect the transactions
contemplated hereby will be reasonably satisfactory in form and substance to the
Buyer; and

         (j) the transaction contemplated herein shall have been approved by the
Board of Directors of Buyer.

     The  Buyer  may  waive  any condition  specified in this Section 6(a) if it
executes a writing so stating at or prior to the Closing.

         6.1.2  Conditions to Obligation  of the Seller.  The  obligation of the
Seller to consummate the  transactions  to be performed by it in connection with
the Closing is subject to satisfaction of the following conditions:

         (a) the  representations  and  warranties  set forth in Section 4 above
shall be true and  correct in all  material  respects  at and as of the  Closing
Date;

         (b) the  Buyer  shall  have  performed  and  complied  with  all of its
covenants hereunder in all material respects through the Closing;

                                                                            E-22
<PAGE>

         (c) no action,  suit,  or  proceeding  shall be  pending or  threatened
before any court or  quasi-judicial  or  administrative  agency of any  federal,
state,  local,  or  foreign  jurisdiction  or before any  arbitrator  wherein an
unfavorable  injunction,  judgment,  order, decree,  ruling, or charge would (A)
prevent  consummation of any of the transactions  contemplated by this Agreement
or (B)  cause  any of the  transactions  contemplated  by this  Agreement  to be
rescinded  following  consummation  (and no such  injunction,  judgment,  order,
decree, ruling, or charge shall be in effect);

         (d) the Buyer shall have  delivered to the Seller a certificate  to the
effect that each of the conditions  specified above in Section  6(b)(i)-(iii) is
satisfied in all respects;

         (e)  the  Seller  and  the  Buyer   shall  have   received   all  other
authorizations, consents, and approvals of governments and governmental agencies
referred to in Section 3(c) and Section 4(c) above;

         (f) the transaction contemplated herein shall have been approved by the
Board of Directors of the Seller and the Seller Shareholders; and

         (g)  all  actions  to  be  taken  by  the  Buyer  in  connection   with
consummation  of the  transactions  contemplated  hereby  and all  certificates,
opinions,  instruments,  and other documents required to effect the transactions
contemplated hereby will be reasonably satisfactory in form and substance to the
Seller.

     The  Seller  may  waive  any condition specified in this Section 6(b) if it
executes a writing so stating at or prior to the Closing.

                             ARTICLE 7 -- Termination.
                            --------------------------

         7.1.1  Termination  of Agreement.  Certain of the Parties may terminate
this Agreement as provided below:

         (a) the Buyer and the Seller may  terminate  this  Agreement  by mutual
written consent at any time prior to the Closing;

         (b) the Buyer may terminate  this Agreement by giving written notice to
the  Seller on or before  the  Closing  if the Buyer is not  satisfied  with the
results  of  its  continuing  business,  legal,  and  accounting  due  diligence
regarding the Seller, subject to the provisions of Section 2(c) hereof regarding
forfeiture of the Deposit in certain circumstances;

         (c) the Buyer may terminate  this Agreement by giving written notice to
the  Seller at any time  prior to the  Closing  (A) in the event the  Seller has
breached any material  representation,  warranty,  or covenant contained in this
Agreement  in any  material  respect,  the Buyer has  notified the Seller of the
breach,  and the breach has continued without cure for a period of 10 days after
the  notice of breach or (B) if the  Closing  shall not have  occurred  within a
reasonable  amount of time  after  July 3, 2000 by reason of the  failure of any

                                                                            E-23
<PAGE>

condition  precedent  under  Section  6(a) hereof  (unless  the failure  results
primarily  from the Buyer itself  breaching  any  representation,  warranty,  or
covenant contained in this Agreement); and

         (d) the Seller may terminate this Agreement by giving written notice to
the  Buyer at any time  prior to the  Closing  (A) in the  event  the  Buyer has
breached any material  representation,  warranty,  or covenant contained in this
Agreement  in any  material  respect,  the Seller has  notified the Buyer of the
breach,  and the breach has continued without cure for a period of 10 days after
the  notice of breach or (B) if the  Closing  shall not have  occurred  within a
reasonable  amount of time after July 3, 2000,  by reason of the  failure of any
condition  precedent  under  Section  6(b) hereof  (unless  the failure  results
primarily  from the Seller itself  breaching any  representation,  warranty,  or
covenant contained in this Agreement).

         7.1.2 Effect of  Termination.  If any Party  terminates  this Agreement
pursuant  to Section  7(a)  above,  all rights and  obligations  of the  Parties
hereunder shall terminate  without any Liability of any Party to any other Party
(except  for any  Liability  of any Party  then in  breach,  and  except for the
provisions of Section 2(c)  relating to the  forfeiture or refund of the Deposit
in certain circumstances).

             ARTICLE 8 -- Remedies for Breaches of this Agreement.
             -----------------------------------------------------

         8.1.1  Survival  of   Representations   and  Warranties.   All  of  the
representations  and warranties of the Parties contained in this Agreement shall
survive the Closing  hereunder  (even if the damaged Party knew or had reason to
know of any  misrepresentation  or breach of warranty or covenant at the time of
Closing)  and  continue  in full  force  and  effect  for a period  of two years
thereafter (subject to any applicable statutes of limitations).

         8.1.2 Indemnification Provisions for Benefit of the Buyer. In the event
the Seller breaches any of its representations, warranties, or covenants, or any
other provision contained herein, and, if there is an applicable survival period
pursuant to Section 8(a) above,  provided  that the Buyer makes a written  claim
for  indemnification  against the Seller pursuant to the provisions below within
such  survival  period,  then the Seller  agrees to indemnify the Buyer from and
against the entirety of any Adverse  Consequences  the Buyer may suffer  through
and  after  the date of the claim for  indemnification  (including  any  Adverse
Consequences  the Buyer may  suffer  after  the end of any  applicable  survival
period) resulting from, arising out of, relating to, in the nature of, or caused
by a material  breach of any such  representation,  warranty,  covenant or other
provision hereof.

         8.1.3  Indemnification  Provisions  for Benefit of the Sellers.  In the
event the Buyer materially breaches any of its representations,  warranties, and
covenants  contained  herein,  and, if there is an  applicable  survival  period
pursuant to Section 8(a) above,  provided  that the Seller makes a written claim
for  indemnification  against the Buyer pursuant to the provisions  below within
such  survival  period,  then the Buyer agrees to indemnify  the Seller from and
against the entirety of any Adverse  Consequences  the Seller may suffer through
and  after  the date of the claim for  indemnification  (including  any  Adverse
Consequences  the  Seller may suffer  after the end of any  applicable  survival

                                                                            E-24
<PAGE>

period) resulting from, arising out of, relating to, in the nature of, or caused
by the material breach of any such representation,  warranty,  covenant or other
provision hereof.

         8.1.4 Matters Involving Third Parties.

         (a) If any third party shall notify any Party (the "Indemnified Party")
with  respect to any  matter (a "Third  Party  Claim")  which may give rise to a
claim for  indemnification  against any other Party (the  "Indemnifying  Party")
under this  Section 8, then the  Indemnified  Party shall  promptly  notify each
Indemnifying Party thereof in writing;  provided,  however, that no delay on the
part of the Indemnified Party in notifying any Indemnifying  Party shall relieve
the Indemnifying Party from any obligation  hereunder unless (and then solely to
the extent) the Indemnifying Party thereby is prejudiced.

         (b)  Any  Indemnifying   Party  will  have  the  right  to  defend  the
Indemnified  Party  against  the Third  Party  Claim with  counsel of its choice
reasonably satisfactory to the Indemnified Party so long as (A) the Indemnifying
Party  notifies  the  Indemnified  Party in  writing  within  15 days  after the
Indemnified   Party  has  given  notice  of  the  Third  Party  Claim  that  the
Indemnifying  Party will  indemnify the  Indemnified  Party from and against the
entirety of any Adverse  Consequences the Indemnified Party may suffer resulting
from,  arising  out of,  relating  to, in the  nature of, or caused by the Third
Party Claim,  (B) the  Indemnifying  Party provides the  Indemnified  Party with
evidence  reasonably  acceptable to the Indemnified  Party that the Indemnifying
Party will have the financial  resources to defend against the Third Party Claim
and fulfill its indemnification  obligations hereunder, and (C) the Indemnifying
Party conducts the defense of the Third Party Claim actively and diligently.

         (c) So long as the Indemnifying  Party is conducting the defense of the
Third Party Claim in accordance with Section 8(d)(ii) above, (A) the Indemnified
Party  may  retain  separate  co-counsel  at  its  sole  cost  and  expense  and
participate in the defense of the Third Party Claim,  (B) the Indemnified  Party
will not consent to the entry of any judgment or enter into any settlement  with
respect  to the Third  Party  Claim  without  the prior  written  consent of the
Indemnifying Party (not to be withheld  unreasonably),  and (C) the Indemnifying
Party will not consent to the entry of any judgment or enter into any settlement
with respect to the Third Party Claim without the prior  written  consent of the
Indemnified Party (not to be withheld unreasonably).

         (d) In the event any of the conditions in Section  8(d)(ii) above is or
becomes unsatisfied,  however, (A) the Indemnified Party may defend against, and
consent to the entry of any judgment or enter into any  settlement  with respect
to, the Third Party Claim in any manner it reasonably may deem  appropriate (and
the  Indemnified  Party need not consult with,  or obtain any consent from,  any
Indemnifying Party in connection  therewith),  and (B) the Indemnifying  Parties
will remain  responsible for any Adverse  Consequences the Indemnified Party may
suffer resulting from,  arising out of, relating to, in the nature of, or caused
by the Third Party Claim to the fullest extent provided in this Section 8.

         8.1.5  Determination  of Adverse  Consequences.  The Parties shall take
into account the time cost of money (using the  Applicable  Rate as the discount

                                                                            E-25
<PAGE>

rate) in determining  Adverse  Consequences  for purposes of this Section 8. All
indemnification payments under this Section 8 shall be deemed adjustments to the
Purchase Price.

         8.1.6  Certain  Set-Off  Rights.  The Escrowed  Shares and the Escrowed
Amount shall be placed in escrow at Closing  pursuant to Section 2(c) above, for
the Escrow Period  commencing  on the Closing  Date,  with an Escrow Agent to be
agreed upon by the Parties (the "Escrow Agent"). The Parties shall enter into an
escrow agreement (the "Escrow Agreement") with the Escrow Agent containing terms
consistent  with the  provisions  of this  Agreement.  The Buyer  shall have the
option of recouping  all or any part of any Adverse  Consequences  it may suffer
(in lieu of  seeking  any  indemnification  to which it is  entitled  under this
Section 8) by notifying the Seller in writing of such Adverse  Consequences (the
"Set-Off Claim") stating (i) the amount of such Adverse  Consequences,  and (ii)
the basis for such claim of  Adverse  Consequences  in  sufficient  details  for
Seller  to  evaluate  the  Set-Off  Claim;  Seller  shall  have ten (10) days to
evaluate  and respond to Buyer's  Set-Off  Claim in writing.  If Seller does not
dispute  Buyer's  Set-Off  Claim,  Buyer shall be entitled to set off such claim
against the Escrowed Amount,  and thereafter against the Escrowed Shares. In the
event that the Seller  disputes a Set-Off  Claim,  the parties will resolve such
dispute using the procedure described in Section 10(p) below,  provided that, if
the Escrow Period  described in this section  expires  during the existence of a
dispute involving a Set-Off Claim, the Escrow Agent shall retain an amount equal
to the Set-Off  Claim in escrow  pending  resolution  of the  dispute,  and will
release the balance of the Escrowed Amount and Escrowed Shares to Seller.

         8.1.7 Notwithstanding  anything to the contrary in this Agreement,  the
Seller  shall have no  obligation  to  indemnity  the Buyer from and against any
Adverse  Consequences  unless  and until  the  aggregate  indemnifiable  Adverse
Consequences  suffered by the Buyer equal or exceed $34,000, net of any proceeds
actually  received from any insurance  policy or policies  covering such Adverse
Consequences  (the  "Basket"),  at which point the Seller  shall be obligated to
indemnify the Buyer for all Adverse  Consequences  (including the Basket). In no
event shall the Seller's  liability  to indemnity  the Buyer exceed the Purchase
Price.

         8.1.8 The foregoing indemnification provisions in this Section 8 are in
addition to, and not in derogation of, any statutory,  equitable,  or common law
remedy   (including   without   limitation   any  such  remedy   arising   under
Environmental,  Health, and Safety Requirements) any Party may have with respect
to the transactions contemplated by this Agreement.

                       ARTICLE 9 -- Additional Covenants.
                       ----------------------------------

         9.1.1  Confidentiality.  Except  as set  forth  in press  releases  and
announcements  approved in advance by each of the  Parties,  the  existence  and
terms of this  Agreement are strictly  confidential  and may not be disclosed to
anyone  other than to the  directors,  officers  and advisers of the Parties who
have fiduciary or legal responsibilities to keep such information  confidential.
Seller shall use its best efforts to prevent its officers, directors,  employees
and  shareholders  from trading in Buyer's stock pending public  announcement by
the Parties of the  Agreement.  Each Party  agrees that it will not  disclose to
third parties  information deemed confidential by the other Party, other than as
required by applicable law.

                                                                            E-26
<PAGE>

         9.1.2  Non-Compete.  Seller  agrees  that,  for a period of three years
following  the  Closing,  it will not  develop,  license or sell any products or
services  within or  without  the U.S.  that are  competitive  with the lines of
business of Gentner that utilize any of the Acquired Assets.

         9.1.3 Share Certificate  Legends. The Seller understand and agrees that
each certificate  representing  Gentner Shares received hereunder shall bear the
following legends:

                  "THE   TRANSFER  OF  THE   SECURITIES   REPRESENTED   BY  THIS
                  CERTIFICATE  IS RESTRICTED BY AN ASSET  PURCHASE  AGREEMENT ON
                  FILE AT THE OFFICES OF THE CORPORATION."

                  "THE SECURITIES  REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED  UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES
                  LAWS OF ANY STATE AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF
                  EXCEPT PURSUANT TO AN EFFECTIVE  REGISTRATION  STATEMENT UNDER
                  SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE
                  EXEMPTION TO THE REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH
                  LAWS."

                          ARTICLE 10 -- Miscellaneous.
                          ----------------------------

         10.1.1  Term  Sheet.  The  Parties   acknowledge  that  this  Agreement
supersedes  that certain term sheet executed by Buyer,  Seller and the Principal
Shareholders dated effective April 18, 2000.

         10.1.2 Press  Releases and Public  Announcements.  Other than the press
release  issued  jointly by the Parties on or about May 19, 2000, no Party shall
issue any press release or make any public announcement  relating to the subject
matter of this Agreement prior to the Closing without the prior written approval
of the other  Party;  provided,  however,  that any  Party  may make any  public
disclosure  it  believes  in good faith is  required  by  applicable  law or any
listing or trading agreement concerning its publicly-traded securities (in which
case the  disclosing  Party will use its  reasonable  best efforts to advise the
other Party prior to making the disclosure).  The Seller  acknowledges  that the
Buyer will file a Form 8-K with the U.S.  Securities and Exchange  Commission in
connection with the transactions contemplated hereby.

         10.1.3 No Third-Party  Beneficiaries.  This Agreement  shall not confer
any  rights  or  remedies  upon any  Person  other  than the  Parties  and their
respective successors and permitted assigns.

         10.1.4  Entire  Agreement.  This  Agreement  (including  the  documents
referred to herein)  constitutes  the entire  agreement  between the Parties and
supersedes  any  prior  understandings,  agreements,  or  representations  by or
between the Parties,  written or oral,  to the extent they related in any way to
the subject matter hereof.

                                                                            E-27
<PAGE>

         10.1.5 Succession and Assignment.  This Agreement shall be binding upon
and inure to the  benefit  of the  Parties  named  herein  and their  respective
successors and permitted  assigns.  No Party may assign either this Agreement or
any of its rights, interests, or obligations hereunder without the prior written
approval of the other Party;  provided,  however,  that the Buyer may (i) assign
any  or all of  its  rights  and  interests  hereunder  to  one or  more  of its
Affiliates  and (ii)  designate  one or more of its  Affiliates  to perform  its
obligations  hereunder (in any or all of which cases the Buyer nonetheless shall
remain responsible for the performance of all of its obligations hereunder).

         10.1.6  Counterparts.  This  Agreement  may be  executed in one or more
counterparts,  each of  which  shall  be  deemed  an  original  but all of which
together will constitute one and the same instrument.

         10.1.7 Headings.  The section headings  contained in this Agreement are
inserted  for  convenience  only and shall not affect in any way the  meaning or
interpretation of this Agreement.

         10.1.8  Notices.  All notices,  requests,  demands,  claims,  and other
communications hereunder will be in writing. Any notice, request, demand, claim,
or other  communication  hereunder  shall be deemed  duly given if (and then two
business days after) it is sent by registered or certified mail,  return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

                  If to the Seller:         Gentner Communications Corporation
                                            1825 Research Way
                                            Salt Lake City, UT  84119
                                            Attention:
                                            Telefax:

                  Copy to:                  Jones, Waldo, Holbrook & McDonough
                                            170 South Main St.
                                            Salt Lake City, UT  84108
                                            Attention: James A. Valeo, Esq.
                                            Telefax: 801-328-0537

                  If to the Buyer:          ClearOne, Inc.
                                            14 Tower Office Park
                                            Woburn, MA  01801
                                            Attention:
                                            Telefax:

                  Copy to:                  Holland & Knight LLP
                                            One Beacon Street
                                            Boston, MA  02108
                                            Attention: Thomas Huang, Esq.
                                            Telefax: 617-720-0325

                                                                            E-28
<PAGE>

     Any  Party  may send  any  notice,   request,   demand,   claim,   or other
communication hereunder to the intended recipient at the address set forth above
using any other means (including personal delivery, expedited courier, messenger
service,  telecopy,  telex,  ordinary  mail,  or electronic  mail),  but no such
notice,  request,  demand, claim, or other communication shall be deemed to have
been duly  given  unless  and until it  actually  is  received  by the  intended
recipient. Any Party may change the address to which notices, requests, demands,
claims,  and other  communications  hereunder  are to be delivered by giving the
other Party notice in the manner herein set forth.

         10.1.9 Governing Law. This Agreement shall be governed by and construed
in  accordance  with the laws of the State of Utah without  giving effect to any
choice or conflict of law provision or rule that would cause the  application of
the laws of any jurisdiction other than the State of Utah.

         10.1.10  Amendments and Waivers.  No amendment of any provision of this
Agreement  shall be valid  unless the same shall be in writing and signed by the
Buyer and the Seller.  The Seller may consent to any such  amendment at any time
prior to the Closing  with the prior  authorization  of its board of  directors;
provided,  however,  that any amendment  effected after the Seller  Shareholders
have approved this  Agreement will be subject to the  restrictions  contained in
applicable law concerning such approval.  No waiver by any Party of any default,
misrepresentation,   or  breach  of  warranty  or  covenant  hereunder,  whether
intentional  or not,  shall be  deemed  to  extend  to any  prior or  subsequent
default,  misrepresentation,  or breach of  warranty or  covenant  hereunder  or
affect in any way any rights  arising by virtue of any prior or subsequent  such
occurrence.

         10.1.11  Severability.  Any term or provision of this Agreement that is
invalid or unenforceable  in any situation in any jurisdiction  shall not affect
the validity or  enforceability  of the remaining terms and provisions hereof or
the validity or  enforceability  of the offending term or provision in any other
situation or in any other jurisdiction.

         10.1.12 Expenses.  Each of the Buyer and the Seller,  will bear its own
costs and expenses  (including  legal fees and expenses)  incurred in connection
with this Agreement and the transactions contemplated hereby.

         10.1.13  Construction.  The Parties  have  participated  jointly in the
negotiation  and  drafting  of this  Agreement.  In the  event an  ambiguity  or
question of intent or interpretation  arises,  this Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall
arise  favoring or  disfavoring  any Party by virtue of the authorship of any of
the provisions of this Agreement. Any reference to any federal, state, local, or
foreign  statute  or law  shall  be  deemed  also  to  refer  to all  rules  and
regulations promulgated thereunder,  unless the context requires otherwise.  The
word  "including"  shall mean including  without  limitation.  At the request of
Buyer, Seller has disclosed each exception to a representation and warranty with

                                                                            E-29
<PAGE>

reasonable  particularity and described the relevant facts in reasonable detail.
The Parties intend that each  representation,  warranty,  and covenant contained
herein  shall  have  independent  significance.  If any Party has  breached  any
representation,  warranty, or covenant contained herein in any respect, the fact
that there exists another representation,  warranty, or covenant relating to the
same subject matter (regardless of the relative levels of specificity) which the
Party has not  breached  shall not detract  from or  mitigate  the fact that the
Party is in breach of the first representation, warranty, or covenant.

         10.1.14  Incorporation  of Exhibits  and  Schedules.  The  Exhibits and
Schedules  identified in this Agreement are incorporated herein by reference and
made a part hereof.

         10.1.15  Specific  Performance.  Each of the Parties  acknowledges  and
agrees that the other Party would be damaged irreparably in the event any of the
provisions of this Agreement are not performed in accordance with their specific
terms or otherwise are breached.  Accordingly,  each of the Parties  agrees that
the other Party shall be entitled to an  injunction  or  injunctions  to prevent
breaches of the  provisions of this Agreement and to enforce  specifically  this
Agreement and the terms and  provisions  hereof in any action  instituted in any
court of the United States or any state  thereof  having  jurisdiction  over the
Parties  and the  matter,  in  addition  to any other  remedy to which it may be
entitled, at law or in equity.

         10.1.16 Dispute Resolution.  Subject to the provisions of Section 10(o)
above,  any  dispute  arising  out  of or in  connection  with  this  Agreement,
including any question regarding its existence,  validity or termination,  shall
be settled: first, by good faith negotiation between the Parties for a period of
no more than ten (10) days following  written  notice by the disputing  Party to
the other Party of such dispute;  then, if unresolved,  by non-binding mediation
for a period of thirty (30) days before a mutually  satisfactory  mediator.  Any
dispute  remaining  unresolved  following  mediation shall be settled by binding
arbitration  before  a  single  arbitrator  under  the  Rules  of  the  American
Arbitration  Association  for  Commercial  Disputes (the "Rules" (as modified by
this  section)).   Judgment  upon  the  award  rendered  by  the  arbitrator  or
arbitrators may be entered in any court having jurisdiction  thereof,  and shall
be binding on the Parties hereto. The costs of arbitration, including reasonable
legal  fees  and  costs,  shall be borne by  either  or both of the  Parties  in
whatever proportion as the arbitrator or arbitrators may award.

         10.1.17  Employee  Benefits  Matters.  The Buyer may,  but shall not be
obligated,  to hire  certain  Employees  of Seller.  In any event,  Seller shall
remain  responsible  for each of the  Employee  Benefit  Plans  that the  Seller
maintains following the Closing (and for terminating such Employee Benefit Plans
that  Seller  elects not to  maintain  following  the  Closing)  and each trust,
insurance  contract,  annuity  contract,  or other funding  arrangement that the
Seller  has  established  with  respect  thereto,  and  Buyer  shall  assume  no
responsibility or obligation therefor.

                  [Remainder of Page Intentionally Left Blank.]

                                                                            E-30
<PAGE>

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

GENTNER COMMUNICATIONS CORPORATION

By:    /s/Susie Strohm
       ------------------------------------------
Title: Chief financial Officer
       ------------------------------------------

CLEARONE, INC.

By:    /s/Andrew Chiang
       ------------------------------------------
Title: President
       ---------------------------------

                                                                            E-31
<PAGE>

                                    EXHIBIT A

                                 ACQUIRED ASSETS

Contracts/Agreements/Licenses
-----------------------------

VideoServer License Agreement, dated March 24, 1999, as amended

The Compliance Certificates

License Agreement between DSP Software Engineering, Inc., and Intervision Corp.,
dated April 15, 1998

International  Distribution  Agreement by and between  Taiwan Teama  Trading Co.
Ltd. and Seller, dated April 10 , 2000

Distribution  Agreement  by and between  TeleDynamics,  LLP,  and Seller,  dated
February 10 , 2000

Distribution Agreement by and between Daisytek, Inc., and Seller, dated April 10
, 2000

Short Term Vendor Agreement,  by and between Wal-Mart and Seller,  dated October
14, 1999

Vendor Agreement, by and between Office Depot and Seller, dated May 23, 2000

Inventory  Listing  [Intentionally Omitted]

Other Acquired Assets

All Intellectual  Property in Schedule  3(m)(iii) and 3(m)(iv) of the Disclosure
Schedule,  other than the  November 20, 1997  Software  License  Agreement  with
VideoServer, Inc., and the April 23, 1998 Co-Marketing Agreement with 8x8, Inc.,
referenced therein.

An amount of $59,000  currently  held by the  Landlord as deposit  for  Seller's
Woburn office

                                                                            E-32
<PAGE>

                                    EXHIBIT B

                               VIDEOSERVER LICENSE

                         AMENDMENT TO LICENSE AGREEMENT

     THIS AMENDMENT TO LICENSE AGREEMTNT (the "Amendment") is entered into as of
the 1st day of June,  2000 by and among Gentner  Communications  Corporation,  a
Utah  corporation  ("Assignee" or "Gentner"),  ClearOne,  Inc., a  Massachusetts
corporation  ("Licensor" or "ClearOne") and Ezenia, Inc., a Delaware corporation
(formerly VideoServer,  Inc.) ("Licensee" or "Ezenia"),  the foregoing sometimes
referred to collectively herein as the "parties."

                             ARTICLE 11 -- RECITALS
                             ----------------------

                           A.  ClearOne and  Licensee  entered into that certain
                  License   Agreement   dated  March  24,  1999  (the   "License
                  Agreement"),  relating  to the  license of certain  technology
                  owned by ClearOne.

                           B.   Gentner   and   ClearOne   have   entered   into
                  negotiations   concerning  a  proposed  transaction  in  which
                  Gentner contemplates acquiring certain assets of ClearOne (the
                  "Acquired  Assets").  The Acquired Assets include software and
                  other  intellectual  property of  ClearOne,  some of which has
                  been licensed to Licensee pursuant to the License Agreement.

                           C.  Subject to the closing of  Gentner's  purchase of
                  the  Acquired  Assets,  the parties  wish to amend the License
                  Agreement as set forth herein.

         NOW,  THEREFORE,  for  good and  valuable  consideration,  the  parties
mutually covenant and agree as follows:

1. Capitalized Terms. Except as otherwise defined herein, capitalized terms used
in this  Amendment  shall have the  meanings  given to such terms in the License
Agreement.

2. Deletion of Provisions.  The texts of Section 1.5, Section 2, and Section 6.2
of the License Agreement are hereby deleted in their entirety,  and the notation
"Intentionally  Omitted" shall be inserted in place of each deleted provision to
maintain existing numbering of the Sections.

3. Gentner as Assignee. Gentner hereby agrees to be bound by all of the terms of
the License  Agreement  and to assume all of ClearOne's  rights and  obligations
thereunder as modified and amended by this Amendment.

                                                                            E-33
<PAGE>

4.  Deliverables;  License Fees.  Licensee hereby  acknowledges  that it has (i)
accepted all of the Deliverables,  (ii) received or waived the training to which
it was entitled pursuant to Section 5 of the License Agreement,  and (iii) shall
not be  entitled  to  receive,  and  Gentner  shall not be  required  to deliver
additional  Hardware Units under the License  Agreement.  The parties each agree
that Licensee shall not be obligated to pay additional  License Fees pursuant to
Section 6.1 of the License Agreement.

5.  Condition to  Effectiveness.  This  Amendment  shall not be binding upon the
parties  or modify  the  License  Agreement  unless  and until  the  closing  of
Gentner's   purchase  of  the  Acquired   Assets  pursuant  to  the  transaction
contemplated between Gentner and ClearOne.

6.  Affirmation of the Lease.  Gentner and Licensee hereby affirm and ratify the
License  Agreement,  and agree that the License  Agreement,  as amended  hereby,
shall remain in full force and effect.

         IN WITNESS  WHEREOF,  the parties have caused this Amendment to be duly
         executed as of the date of the first above written.

GENTNER COMMUNICATIONS                    CLEARONE, INC.
CORPORATION

By     /s/Susie Strohm                    By      /s/Andrew Chiang
  --------------------------------------     -----------------------------------

Its     CFO                               Its      President
   -------------------------------------     -----------------------------------

EZENIA, INC.

By      /s/Stephen P. Cummings
   -------------------------------------

Its      V.P. of Engineering
   -------------------------------------

                                                                            E-34
<PAGE>

                                    EXHIBIT C

                               ALLOCATION SCHEDULE

ClearOne Purchase Allocation

Property & Equipment - Net          $  319,284

Deposits (Cummings Lease/UPS)       $   59,250

Intangibles (Patent)                $   21,624

Goodwill                            $3,061,842

Inventory                           $  299,085
                                    -----------

Total Purchase Price                $3,758,085
                                    ==========

                                                                            E-35
<PAGE>

                                    EXHIBIT D

                              FINANCIAL STATEMENTS

                  [see auditor's report for ClearOne in 8-K/A]

                                                                            E-36
<PAGE>

                                    EXHIBIT E

                           SELLERS OPINION OF COUNSEL

[Intentionally Omitted]

                                                                            E-37
<PAGE>

                                    EXHIBIT F

REGISTRATION RIGHTS AGREEMENT

     This Registration  Rights Agreement (the "Agreement") is entered into as of
July  5,  2000,  by  and  between  Gentner  Communications  Corporation,  a Utah
corporation (the  "Company"),  and ClearOne,  Inc., a Massachusetts  corporation
("Purchaser" or "Purchasers").

1.       Definitions.  As used in this Agreement, the following terms shall have
the following meanings:

         "Asset  Purchase  Agreement"  shall mean the Asset  Purchase  Agreement
between Company and Purchaser dated July 5, 2000.

         "Common Stock" shall mean the common stock of the Company.

         "Exchange  Act"  shall mean the  Securities  Exchange  Act of 1934,  as
amended,  or any similar federal  statute,  and the rules and regulations of the
SEC thereunder.

         "Holder" or "Holders"  shall mean any  Purchaser or any assignee  under
this Agreement who holds any Registrable Securities (as defined below).

         The  terms  "register,"  "registered"  and  "registration"  refer  to a
registration  effected  by  preparing  and filing a  registration  statement  in
compliance with the Securities Act (as defined below), including the declaration
or ordering of the effectiveness of such registration statement.

         "Registrable  Securities"  means the Shares (as defined  below) held by
Purchasers which have not been registered pursuant to this Agreement.

         "Registration Expenses" shall mean all expenses incurred by the Company
in connection with a registration hereunder,  including, without limitation, all
registration and filing fees, printing expenses, blue sky fees and expenses, the
expense of any special audits incident to or required by any such  registration,
the fees and disbursements of counsel for the Company.

         "SEC" shall mean the U.S. Securities and Exchange Commission.

         "Securities Act" shall mean the Securities Act of 1933, as amended,  or
any similar federal statute and the rules and regulations of the SEC thereunder.

         "Selling  Expenses" shall mean all  underwriting  discounts and selling
commissions  applicable to the sale of the Shares and all fees and disbursements
of counsel for any Holder in connection with the sale of the Shares.

                                                                            E-38
<PAGE>

         "Shares"  means  some or all of the  129,871  shares  of the  Company's
common stock issued to the Purchaser  pursuant to the Asset Purchase  Agreement,
including  additional  shares  of common  stock as a result of any stock  split,
stock dividend, recapitalization, or similar event applicable to such Shares.

2.       "Piggy-Back" Registration.
         -------------------------

         (a) If the Company  shall  determine at any time to register any of its
Common Stock or securities  which are convertible into or exercisable for Common
Stock (other than a registration  relating  solely to employee  benefit plans, a
registration  relating solely to an SEC Rule 145 transaction,  a registration on
Form S-4,  or a  registration  on any  registration  form  which does not permit
secondary sales or does not include  substantially the same information as would
be  required to be included in a  registration  statement  covering  the sale of
Registrable  Securities),  the Company  will:  (i) promptly  give to the Holders
written notice thereof (which shall include a list of the jurisdictions in which
the Company intends to attempt to qualify such  securities  under the applicable
blue sky or other state securities  laws), and (ii) cause to be included in such
registration  and in any  underwriting  involved  therein  all  the  Registrable
Securities specified in a written request or requests made by the Holders within
ten (10) days after receipt of such written  notice from the Company;  provided,
however, that the number of Registrable  Securities so registered may be limited
by the underwriter's cut-back provision set forth in Subsection 2(c) below.

         (b) If the  registration  of which the  Company  gives  notice is for a
registered  public  offering  involving an  underwriting,  the Company  shall so
advise the Holders as part of the written  notice given  pursuant to  Subsection
2(a). In such event, the right of each Holder to register  pursuant to Section 2
shall be conditioned upon such Holder's  participation in such  underwriting and
the inclusion of such Holder's Registrable Securities in the underwriting to the
extent provided herein.

         (c) Any Holders  proposing to distribute their  Registrable  Securities
through  such  underwriting  shall  (together  with the  Company)  enter into an
underwriting  agreement  in  customary  form  with  the  representative  of  the
underwriter  or   underwriters   selected  for   underwriting  by  the  Company.
Notwithstanding  any other provision of this Section 2, the Company shall not be
required to include in the registration the Registrable Securities of any Holder
unless the Holder accepts and agrees to the terms  proposed by the  underwriters
selected  by the  Company,  and then only in such  quantity  as will not, in the
opinion of the  underwriters and based on marketing  factors  identified by such
underwriters,  jeopardize  the success of the  offering by the  Company.  If the
total number of Registrable  Securities which the Holders request to be included
in any offering exceeds the number of Shares which the  underwriters  reasonably
believe  is  compatible  with the  success of the  offering,  then the number of
shares to be registered  shall be reduced as between the Holders and the Company
pro rata based on the ratio of (i) the  Registrable  Shares to be  registered to
(ii) all shares of Common Stock of the Company to be  registered,  provided that
the number of shares of  Registrable  Securities  of the  Holders to be included
shall not be reduced by more than fifty  percent  (50%) of the total shares that
the Holders have requested be included in the registration.

                                                                            E-39
<PAGE>

3.       Obligations of the Company. Whenever required under Section 2 to effect
the  registration  of any  Registrable  Securities,  the  Company  shall  do the
following as expeditiously as possible:

         (a) Prepare and file with the SEC a registration statement with respect
to such Registrable Securities and use its reasonable best efforts to cause such
registration statement to become and remain effective;  provided, however, that,
except as set forth in Subsection  3(b) below,  the Company shall in no event be
obligated to cause such registration statement to remain effective for more than
one hundred twenty (120) days.

         (b) If the  registration  is  effected  pursuant  to Rule 415 under the
Securities  Act,  which rule allows for the  registration  of  securities  to be
offered on a continuous or delayed  basis,  the Company shall  promptly (i) take
all actions that may be necessary or advisable to maintain the  effectiveness of
such registration,  (ii) at Purchaser's request,  file with the SEC a supplement
or supplements to the previously  filed prospectus as required by Rule 424 under
the Securities Act, and (iii) maintain the  effectiveness  of such  registration
statement for at least one hundred twenty (120) days following the filing of any
such supplements.

         (c) Prepare and file with the SEC such  amendments  and  supplements to
such registration  statements and the prospectus used in connection therewith to
comply with the requirements of the Securities Act.

         (d)  Furnish  to the  Holders  such  number of  copies of a  prospectus
(including a preliminary prospectus), in conformity with the requirements of the
Securities Act, and such other documents as such Holders may reasonably  request
in order to facilitate the disposition of the Registrable  Securities to be sold
under the registration statement.

         (e) Use its  reasonable  best  efforts  to  register  and  qualify  the
securities covered by such registration  statements under the securities laws of
such  states of the United  States as shall be  reasonably  appropriate  for the
distribution of the securities covered by such registration statement.

4.       Information  by  Holder.  It  shall  be  a condition  precedent  to the
obligations  of the Company to take any action  pursuant to this  Agreement that
the  Holders  of  Registrable  Securities  included  in any  registration  shall
cooperate  with the Company and any  underwriters  to effect such  registration,
including  providing to the Company any consents and  furnishing  to the Company
such information  regarding such Holders and the  distribution  proposed by such
Holders  as the  Company  may  reasonably  request  in  writing  and as shall be
required in  connection  with any  registration,  qualification,  or  compliance
referred to in this Agreement.

5.       Expenses  of  Registration.   All   Registration  Expenses  incurred in
connection  with any  registration,  qualification,  or  compliance  pursuant to
Section  2 of this  Agreement  shall be borne by the  Company,  and all  Selling
Expenses  shall be borne by the Holders of the securities so registered pro rata
on the basis of the number of their Shares so registered.

                                                                            E-40
<PAGE>

6.       No  Delay  of Registration.  No Holder shall have any right to take any
action to restrain,  enjoin,  or  otherwise  delay any  registration  under this
Agreement  as a result of any  controversy  that might arise with respect to the
interpretation or implementation hereof.

7.       Indemnification.  In  the  event  that  the Registrable Securities of a
Holder are included in a registration statement filed under this Agreement:

         (a) To the extent  permitted by law, the Company  will  indemnify  each
such Holder,  each of its  officers,  directors  and  partners,  and each person
controlling such Holder, with respect to which registration,  qualification,  or
compliance of Registrable  Securities of such Holder has been effected  pursuant
to this Agreement,  and each  underwriter,  if any, and each person who controls
any underwriter, against all claims, losses, damages and liabilities (or actions
in  respect  thereof)  arising  out of or based  on any  untrue  statement  of a
material fact  contained in any  registration  statement,  prospectus,  offering
circular or other document incident to any such registration,  qualification, or
compliance,  or based on any omission to state  therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
or any  violation  by  the  Company  of the  Securities  Act or of any  rule  or
regulation  promulgated  under the  Securities Act applicable to the Company and
relating to action or inaction  required of the Company in  connection  with any
such registration,  qualification,  or compliance,  and will reimburse each such
Holder,  each of its officers,  directors and partners,  each person controlling
such  Holder,  each such  underwriter,  and each  person who  controls  any such
underwriter,  for any legal and other expenses reasonably incurred in connection
with  investigating and defending any such claim, loss,  damage,  liability,  or
action;  provided  that the  Company  will not be  liable  in any such  case for
amounts paid in settlement of any such claim, loss, damage, liability, or action
if such  settlement is effected  without the  reasonable  consent of the Company
(which  consent shall not be  unreasonably  withheld),  nor shall the Company be
liable to the extent that any such claim,  loss, damage,  liability,  or expense
arises  out of or is  based on any  untrue  statement  or  omission  in  written
information  furnished to the Company by such Holder with the knowledge  that it
would be used in the registration statement.

         (b) To the extent  permitted by law, each Holder will,  if  Registrable
Securities  held by such  Holder  are  included  in the  securities  as to which
registration,  qualification  or  compliance  is being  effected,  indemnify the
Company, each of its directors and officers,  each legal counsel and independent
accountant of the Company, each underwriter, if any, of the Company's securities
covered by such a registration  statement,  each person who controls the Company
or such  underwriter  within the meaning of the  Securities  Act, and each other
Holder, each of such other Holder's officers,  directors, and partners, and each
person controlling such other Holder, against all claims,  losses,  damages, and
liabilities  (or  actions in  respect  thereof)  arising  out of or based on any
untrue  statement (or alleged untrue  statement) of a material fact contained in
any  such  registration  statement,  prospectus,  offering  circular,  or  other
document, or any omission (or alleged omission) to state therein a material fact
required to be stated  therein or necessary to make the  statements  therein not

                                                                            E-41
<PAGE>

misleading,  and will reimburse the Company, such other Holders, such directors,
officers,  partners,  persons,  underwriters or control persons for any legal or
any other  expenses  reasonably  incurred in connection  with  investigating  or
defending any such claim,  loss, damage,  liability,  or action, in each case to
the extent,  but only to the  extent,  that such  untrue  statement  (or alleged
untrue statement) or omission (or alleged omission) is made in such registration
statement, prospectus, offering circular, or other document in reliance upon and
in conformity with written  information  furnished to the Company by such Holder
with the knowledge that it would be used therein,  provided that the Holder will
not be liable in any case for  amounts  paid in  settlement  of any such  claim,
loss,  damage,  liability,  or action if such settlement is effected without the
reasonable  consent  of the  Holder  (which  consent  shall not be  unreasonably
withheld).

         (c) Each party  entitled to  indemnification  under this  Section  (the
"Indemnified  Party")  shall  give  notice  to the  party  required  to  provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the  Indemnifying  Party to assume  the  defense of any such claim or any
litigation  resulting  therefrom,  provided  that  counsel for the  Indemnifying
Party,  who shall conduct the defense of such claim or any litigation  resulting
therefrom,  shall be approved by the Indemnified Party (whose approval shall not
unreasonably  be withheld),  and the  Indemnified  Party may participate in such
defense at such party's  expense,  and provided  further that the failure of any
Indemnified   Party  to  give  notice  as  provided  herein,   if  substantially
prejudicial  to the ability of the  Indemnifying  Party to defend  against  such
claim or any litigation  resulting  therefrom,  shall relieve such  Indemnifying
Party of any  obligations  under this Agreement to the extent such  Indemnifying
Party is damaged  solely as a result of such  failure to give  notice,  but such
failure  shall not relieve  such  Indemnifying  Party of any of its  obligations
otherwise than under this Agreement.  No  Indemnifying  Party, in the defense of
any such claim or litigation, shall, except with the consent of each Indemnified
Party,  consent to entry of any judgment or enter into any settlement which does
not  include as an  unconditional  term  thereof  the giving by the  claimant or
plaintiff to such  Indemnified  Party of a release from all liability in respect
to such claim or litigation.

8.       Rule  144  Reporting.  With  a view to making available the benefits of
certain  rules  and  regulations  of the SEC which  may  permit  the sale of any
outstanding Shares to the public without registration,  the Company agrees after
any registration to use its best efforts to file with the SEC in a timely manner
all reports and other documents required of the Company under the Securities Act
and the Exchange Act, as long as it is subject to such reporting requirements.

9.       Transfer of  Registration  Rights.   Subject  to  the  limitations  and
restrictions  on  transferability  of the Shares set forth in the Asset Purchase
Agreement,  the rights to cause the Company to register a Holder's  Shares under
this  Agreement may be assigned by such Holder (or its assignee) to a transferee
that  acquires  from a Holder (or its  assignee) at least fifty percent (50%) or
more of the  Registrable  Securities  originally  acquired  by the  transferring
Holder,  provided  that the Company is given notice by the Holder at the time of
such transfer stating the name and address of the transferee and identifying the
securities with respect to which these rights are being assigned.

10.      "Market  Stand-Off"  Agreement.  Holder  agrees,  if  requested  by the
Company or an underwriter of Common Stock (or other  securities) of the Company,
not to sell or  otherwise  transfer or dispose of any Shares of the Company held
by the Holder (other than those included in the registration) during the 120-day
period  following the effective date of a registration  statement of the Company
filed under the Securities Act.

                                                                            E-42
<PAGE>

11.      Termination  of  Registration  Rights.  The  obligations of the Company
to  register  the  Registrable  Securities  pursuant  to  this  Agreement  shall
terminate  at the  earlier of seven (7) years  from the date  hereof or, for any
Holder,  when that  Holder is able to sell the Shares  pursuant  to SEC Rule 144
within a period of twelve (12) months.

12.      Modifications  and  Waivers.  This  Agreement  may  not  be  amended or
modified,  nor may the  rights of any party  hereunder  be  waived,  except by a
written  document that is executed by the  Purchasers  holding a majority of the
Registrable  Securities.  No waiver of any provision of this Agreement  shall be
deemed or shall constitute a waiver of any other provision hereof, nor shall any
waiver constitute a continuing waiver.

13.      Successors.  This  Agreement  is  and  shall  be binding upon and inure
to the  benefit  of the  parties  hereto  and their  respective  successors  and
assigns;  provided,  however,  that neither the Company nor the Purchasers shall
assign this  Agreement to any third party,  except in the case of the Purchasers
in accordance with Section 9 above.

14.      Rights and Obligations of Third Parties.  Nothing  in  this  Agreement,
whether  express or implied,  is intended to confer any rights or remedies under
or by reason of this  Agreement on any persons  other than the parties to it and
their  respective  successors  and  permitted  assigns,  nor is anything in this
Agreement  intended to relieve or discharge  the  obligation or liability of any
third parties to any party to this  Agreement,  nor shall any provision give any
third  party  any  right of  subrogation  or  action  against  any party to this
Agreement.

15.      Notices.  Any  notice,   request,   consent,   or  other  communication
hereunder  shall be in writing and shall be sent by one of the following  means:
(i) mailed by registered  or certified  first class air mail,  postage  prepaid;
(ii) by facsimile transmission; (iii) by reputable overnight courier; or (iv) by
personal  delivery,  and  shall be  properly  addressed  to the  Company  at its
principal  office,  and to the  Purchasers  at their  addresses  as shown in the
records of the Company,  or to such other address or addresses as the Company or
Purchasers  shall hereafter  designate to the other parties in writing.  Notices
shall be effective when sent.

16.      Entire  Agreement.  This  Agreement  and the exhibits hereto constitute
the entire  agreement  between  the  parties  hereto in  relation to the subject
matter  hereof.  Any prior  written  or oral  negotiations,  correspondence,  or
understandings relating to the subject matter hereof shall be superseded by this
Agreement and shall have no force or effect.

17.      Severability.   If  any  provision   which  is  not  essential  to  the
effectuation  of the basic purpose of this Agreement is determined by a court of
competent jurisdiction to be invalid and contrary to any existing or future law,
such  invalidity  shall not impair the operation of the remaining  provisions of
this Agreement.

18.      Headings.  The  headings  of  the Sections of this Agreement and in the
exhibits to this  Agreement are inserted for  convenience  of reference only and
shall not affect the construction or interpretation of any provisions hereof.

                                                                            E-43
<PAGE>

19.      Counterparts.   This  Agreement  may  be  executed  in  any  number  of
counterparts,  each of which when executed and  delivered  shall be an original,
but all of which together shall constitute one and the same instrument.

20.      Governing Law.  This  Agreement  shall  be construed in accordance with
and  governed  by the laws of the State of Utah,  without  giving  effect to the
conflicts of laws provisions thereof.

21.      Jurisdiction,  Service  of  Process,  and Venue.  Any  dispute  arising
out of or in connection  with this Agreement,  including any question  regarding
its existence,  validity or termination,  shall be settled: first, by good faith
negotiation  between  the  parties  for a period  of no more  than ten (10) days
following  written  notice by the  disputing  party to the  other  Party of such
dispute;  then, if unresolved,  by non-binding  mediation for a period of thirty
(30)  days  before a  mutually  satisfactory  mediator.  Any  dispute  remaining
unresolved  following  mediation shall be settled by binding arbitration in Salt
Lake  City,  UT  before a single  arbitrator  under  the  Rules of the  American
Arbitration  Association for Commercial  Disputes (as modified by this section).
Judgment upon the award rendered by the arbitrator or arbitrators may be entered
in any court having  jurisdiction  thereof,  and shall be binding on the parties
hereto.  The costs of arbitration,  including  reasonable  legal fees and costs,
shall be borne by either or both of the  Parties in whatever  proportion  as the
arbitrator or arbitrators may award.

                                                                            E-44
<PAGE>

     IN WITNESS WHEREOF,  the Company and each Purchaser listed on Exhibit A has
caused  this   Agreement   to  be  executed  by  his  or  its  duly   authorized
representative.

GENTNER COMMUNICATIONS                  CLEARONE, INC.
CORPORATION

By: /s/Susie Strohm                      By: /s/Andrew Chiang
    --------------------------------         -----------------------------------

Its: Chief Financial Officer             Its: President
     -------------------------------          ----------------------------------

                                                                            E-45

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