Document:

AGREEMENT AND PLAN OF MERGER

                                  By and Among

                         TERRA NETWORKS ASOCIADAS, S.L.,
                           AMADEUS AMERICAS, INC. and
                             AVANTI MANAGEMENT, INC.

                RCG COMPANIES INCORPORATED, as the Buyer, and

                                 ONETRAVEL, INC.

                             Dated February 10, 2005

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                          AGREEMENT AND PLAN OF MERGER

      This Agreement and Plan of Merger (the  "Agreement") is entered into as of
February  10,  2005,  by and among  Amadeus  Americas,  Inc.  f/k/a  Amadeus NMC
Holding,  Inc., a Delaware  corporation  ("Amadeus");  Terra Networks Asociadas,
S.L., a company  organized  and existing  under the laws of the Kingdom of Spain
("Terra");  Avanti Management,  Inc., a Pennsylvania  corporation  ("Avanti" and
together  with  Amadeus  and  Terra  are  each  individually  referred  to  as a
"Shareholder" and collectively as the "Shareholders");  OneTravel, Inc., a Texas
corporation (the "Company");  OT Acquisition  Corporation,  a Texas  corporation
("Merger  Sub");  RCG  Companies  Incorporated,   a  Delaware  corporation  (the
"Buyer");   and  the  Shareholder   Representative  (as  defined  herein).   The
Shareholders,  the Company,  Merger Sub and the Buyer are each a "party" to this
Agreement and together are "parties" to this Agreement.

                                 R E C I T A L S

      WHEREAS, the Board of Directors of each of the Company, Merger Sub and the
Buyer has determined to engage in the transactions contemplated hereby, pursuant
to which (i) Merger Sub will merge  with and into the  Company  (the  "Merger");
(ii) the capital  stock of Merger Sub shall be  converted  into shares of common
stock,  par value $0.001 per share, of the Company ("Common  Stock");  and (iii)
each share of Common Stock  outstanding  immediately prior to the Effective Time
(as defined  below) (such shares of Common Stock and any  associated  rights are
referred to in this Agreement as "Shares")  shall be converted into the right to
receive the Merger  Consideration Per Share in the manner herein described,  all
upon the terms and subject to the conditions set forth herein.

      WHEREAS,  the Board of Directors of the Company has approved and resolved,
subject to the terms of this  Agreement,  to recommend that the  shareholders of
the Company approve the Merger and this Agreement.

      WHEREAS, the Boards of Directors of the Buyer and Merger Sub have approved
the Merger and this Agreement. The Buyer, as the sole shareholder of Merger Sub,
has approved the Merger and this Agreement.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the mutual representations, warranties
and covenants contained herein, and other good and valuable  consideration,  the
sufficiency of which is hereby  acknowledged,  the parties  hereto  covenant and
agree as follows with the intent to be legally bound:

1. Definitions.  For purposes of this Agreement,  the following terms shall have
the meanings herein specified:

      "Accountant"  has  the  meaning  set  forth  in  Section  4(c)(8)  of this
Agreement.

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      "Affiliate"   means,  with  respect  to  any  person,   any  other  person
controlling,  controlled by or under common  control with such person.  The term
"Control"  as  used  in  the  preceding   sentence  means,  with  respect  to  a
corporation, the right to exercise, directly or indirectly, more than 50% of the
voting rights attributable to the shares of the controlled corporation and, with
respect to any person  other than a  corporation,  the  possession,  directly or
indirectly,  of the power to direct or cause the direction of the  management or
policies of such person.

      "Adjusted Cash Merger  Consideration" has the meaning set forth in Section
4(c)(3) of this Agreement.

      "Agreement"  has the meaning set forth in the  opening  paragraph  of this
Agreement.

      "Allen & Co. Broker  Agreement" has the meaning set forth in Section 10.22
of this Agreement.

      "Allen & Co.  Warrants"  has the meaning  set forth in Section  12.15 of
this Agreement.

      "Amadeus"  has the  meaning  set forth in the  opening  paragraph  of this
Agreement.

      "Amadeus/Terra Loans" means those certain loans made by Amadeus, Terra and
Terra  Networks to the  Company as  described  on  Schedule 1 of the  Disclosure
Schedule.

      "Arrangement" means (i) any written lease, agreement, contract, commitment
or license or (ii) any  enforceable  understanding  or  enforceable  oral lease,
agreement,  contract,  commitment  or license;  by which a Person (a) has or may
acquire  any  rights,  (b)  has or may  become  subject  to  any  obligation  or
liability, or (c) any of the assets owned or used by it is or may become bound.

      "Articles  of Merger"  has the  meaning  set forth in Section  2.3 of this
Agreement.

      "Avanti"  has the  meaning  set  forth in the  opening  paragraph  of this
Agreement.

      "Buyer"  has the  meaning  set  forth  in the  opening  paragraph  of this
Agreement.

      "Buyer Bringdown Certificate" has the meaning set forth in Section 13.3(a)
hereof.

      "Buyer  Capital  Stock" has the  meaning  set forth in Section 9.2 of this
Agreement.

      "Buyer Common Stock" means the common stock, par value $0.04 per share, of
the Buyer.

      "Buyer   Indebtedness"   means,   with   respect  to  the  Buyer  and  its
Subsidiaries,  at any date,  without  duplication:  (i) all  obligations of such
Person  for  borrowed  money  or in  respect  of  loans  or  advances,  (ii) all
obligations  of such  Person  evidenced  by  bonds,  debentures,  notes or other
similar  instruments or debt securities,  (iii) any commitment by which a Person
assures a creditor against loss (including contingent reimbursement  obligations
with  respect  to  letters  of  credit  and  bankers'  acceptances),   (iv)  all
obligations  arising from  cash/book  overdrafts,  (v) all  obligations  of such
Person  secured by a Lien on such Person's  assets,  (vi) all guarantees of such

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Person  in  connection  with any of the  foregoing  and any  other  indebtedness
guaranteed  in any manner by a Person  (including  guarantees  in the form of an
agreement to repurchase or reimburse),  (vii) all capital lease obligations (but
not operating  leases),  (viii) all indebtedness for the deferred purchase price
of property with respect to which a Person is liable, contingently or otherwise,
as obligor or otherwise (other than trade payables and other current liabilities
incurred  in the  Ordinary  Course  of  Business),  (ix) all  other  liabilities
classified as non-current  liabilities in accordance with GAAP as of the Closing
Date and (x) all accrued interest,  prepayment  premiums or penalties related to
any of the foregoing.

      "Buyer Intellectual  Property" has the meaning set forth in Section 9.9 of
this Agreement.

      "Buyer  Options"  has  the  meaning  set  forth  in  Section  9.2 of  this
Agreement.

      "Buyer  Preferred  Stock" means Buyer's Series A 6% Convertible  Preferred
Stock and Buyer's Series B 6% Redeemable Participating Preferred Stock.

      "Cap" has the meaning set forth in Section 15.1(b)(iii) of this Agreement.

      "Claim" and "Claims"  have the  meanings  set forth in Section  15.1(a) of
this Agreement.

      "Closing" has the meaning set forth in Section 8 of this Agreement.

      "Closing Date" has the meaning set forth in Section 8 of this Agreement.

      "Closing  Deposit  Amount"  has the meaning set forth in Section 8 of this
Agreement.

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

      "Company"  has the  meaning  set forth in the  opening  paragraph  of this
Agreement.

      "Company  Bringdown  Certificate"  has the  meaning  set forth in  Section
13.2(a) hereof.

      "Company   Subsidiary"  means  11thhour.com,   Inc.,  a  South  Carolina
corporation wholly-owned by the Company.

      "Common  Stock"  has  the  meaning  set  forth  in the  Recitals  of  this
Agreement.

      "Company  Expenses"  has the meaning set forth in Section  12.7(a) of this
Agreement.

      "Company  Indebtedness"  means,  with  respect  to  the  Company  and  its
Subsidiaries,  at any date,  without  duplication:  (i) all  obligations of such
Person  for  borrowed  money  or in  respect  of  loans  or  advances,  (ii) all
obligations  of such  Person  evidenced  by  bonds,  debentures,  notes or other
similar  instruments or debt securities,  (iii) any commitment by which a Person
assures a creditor against loss (including contingent reimbursement  obligations

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with  respect  to  letters  of  credit  and  bankers'  acceptances),   (iv)  all
obligations  arising from  cash/book  overdrafts,  (v) all  obligations  of such
Person  secured by a Lien on such Person's  assets,  (vi) all guarantees of such
Person  in  connection  with any of the  foregoing  and any  other  indebtedness
guaranteed  in any manner by a Person  (including  guarantees  in the form of an
agreement to repurchase or reimburse),  (vii) all capital lease obligations (but
not operating  leases),  (viii) all indebtedness for the deferred purchase price
of property with respect to which a Person is liable, contingently or otherwise,
as obligor or otherwise (other than trade payables and other current liabilities
incurred  in the  Ordinary  Course  of  Business),  (ix) all  other  liabilities
classified as non-current  liabilities in accordance with GAAP as of the Closing
Date and (x) all accrued interest,  prepayment  premiums or penalties related to
any of the foregoing.

      "Company  Indebtedness  Closing  Schedule"  has the  meaning  set forth in
Section 13.2(h) of this Agreement.

      "Computer  Software"  has the meaning set forth in Section  10.7(a)(v)  of
this Agreement.

      "Confidential  Information"  has the meaning set forth in Section  12.3 of
this Agreement.

      "Convertible  Promissory Notes" means 180-day non-interest bearing secured
convertible  promissory  notes of Buyer with an aggregate  principal  balance of
$12,500,000,  secured by a lien on the assets of Buyer,  convertible into shares
of Buyer  Common Stock at a price per share equal to the lesser of (a) $2.25 per
share or (b) twenty-five percent (25%) greater than the price per share of Buyer
Common  Stock  paid by Buyer's  financing  sources in  connection  with  Buyer's
financing  of the cash  component of the Merger  Consideration,  with such other
terms as set forth  therein,  substantially  in the form of  Exhibit A  attached
hereto.

      "Copyrights"  has the  meaning set forth in Section  10.7(a)(iii)  of this
Agreement.

      "Effective  Date"  has  the  meaning  set  forth  in  Section  2.3 of this
Agreement.

      "Effective  Time"  has  the  meaning  set  forth  in  Section  2.3 of this
Agreement.

      "Employee  Benefit  Plans" has the meaning  set forth in Section  10.21 of
this Agreement.

      "Environmental Laws" has the meaning set forth in Section 10.11(d) of this
Agreement.

      "ERISA" means the Employee  Retirement  Income Security Act of 1974 or any
successor  law, and  regulations  and rules  issued  pursuant to that Act or any
successor law.

      "Escrow Agent" shall mean Wachovia Bank, N.A.

      "Escrow Agreement" shall mean that certain Escrow Agreement, dated of even
date  herewith,  by and among the Escrow Agent,  the Company,  the Buyer and the
Shareholders, substantially in the form of Exhibit B attached hereto.

      "Estimated  Working  Capital  Amount" has the meaning set forth in Section
4(c)(2) of this Agreement.

      "Exchange Act" means the Securities Exchange Act of 1934, as amended,  and
the rules and regulations promulgated thereunder.

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      "Facilities"  includes  real  property,  leaseholds,  or  other  interests
currently or formerly owned or operated by the Company or its  Subsidiaries  and
all buildings,  plants,  structures or equipment  currently or formerly owned or
operated by the Company or its Subsidiaries.

      "Final Adjustment  Amount" has the meaning set forth in Section 4(c)(3) of
this Agreement.

      "Final  Statement of Working Capital" has the meaning set forth in Section
4(c)(3) of this Agreement.

      "Final  Working  Capital  Amount"  has the  meaning  set forth in  Section
4(c)(3) of this Agreement.

      "Financial Statements" means the financial statements described in Section
10.14 of this Agreement.

      "GAAP"  means  United  States  generally  accepted  accounting  principals
consistently applied.

      "Governmental  Authority" includes the following:  (a) a national,  state,
country, city, town, village,  district or other jurisdiction of any nature; (b)
federal, state, local, municipal, foreign, or other government; (c) governmental
or  quasi-governmental  authority  of any  nature  (including  any  governmental
agency,  branch,  department,  official,  or  entity  and  any  court  or  other
tribunal);  (d) multi-national  organization or body; and (e) a body exercising,
or entitled to exercise, any administrative,  executive, judicial,  legislative,
police, regulatory, or taxing authority or power of any nature.

      "Governmental  Authorization" means an approval, consent, license, permit,
waiver  or  other  authorization  issued,  granted,  given,  or  otherwise  made
available by or under the authority of a Governmental Authority or pursuant to a
Legal Requirement.

      "Hazardous  Materials"  has the meaning  set forth in Section  10.11(d) of
this Agreement.

      "IGT" means IGT Services, Inc., a Delaware corporation.

      "Indemnified  Party" has the  meaning  set forth in  Section  15.3 of this
Agreement.

      "Indemnifying  Party" has the  meaning  set forth in Section  15.3 of this
Agreement.

      "Initial Deposit Amount" means the sum of $2,500,000 in cash.

      "Intellectual  Property" has the meaning set forth in Section 10.7 of this
Agreement.

      "Interested  Party"  has the  meaning  set forth in  Section  12.3 of this
Agreement.

      "Knowledge"  (a) the Company and its  Subsidiaries  will be deemed to have
"Knowledge"  of a  particular  fact or other  matter if any of Philip A.  Ferri,
Norman  Knowles,  Henry Wang or Steven J. Pello is actually aware of the fact or
other matter;  (b) each of the Shareholders and the Buyer will be deemed to have
"Knowledge"  of a  particular  fact or other  matter  if any  individual  who is
serving  as a  director,  executive  officer,  supervisory  personnel,  partner,
executor  or trustee of such  Person (or in any  similar  capacity)  is actually
aware of the fact or other matter.

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      "Law" or  "Laws"  means  all  laws,  ordinances,  regulations,  judgments,
orders, decrees or rules of any court, arbitrator or Governmental Authority.

      "Lease  Documents"  has the  meaning  set forth in  Section  10.17 of this
Agreement.

      "Leased Real  Property" has the meaning set forth in Section 10.17 of this
Agreement.

      "Legal Requirements" includes federal, state, local,  municipal,  foreign,
international,   and  multinational  laws,  including   administrative   orders,
constitutions, ordinances, regulations, statutes and treaties.

      "Letter of Transmittal"  has the meaning set forth in Section 5(a) of this
Agreement.

      "Libra  Securities"  has the  meaning  set forth in Section  10.22 of this
Agreement.

      "Licenses"  has the  meaning  set  forth in  Section  10.7(a)(vi)  of this
Agreement.

      "Lien" means any mortgage, charge, community property interest, condition,
equitable interest,  option, right of first refusal,  pledge, security interest,
encumbrance,  lien or restriction of any kind,  including,  without limitations,
(i) any restriction or use, voting, transfer,  receipt of income, or exercise of
any other  attribution of ownership;  (ii) any  conditional  sale or other title
retention agreement;  (iii) any lease in the nature thereof; and (iv) the filing
of or an agreement to give any financing  statement under the Uniform Commercial
Code of any  jurisdiction or under any other  applicable law or regulation,  and
including any lien or charge arising under any federal, state or local laws.

      "Materially  Adverse" means,  with respect to any matters or events,  that
such matters or events,  together with all other matters, events or facts, would
have, or might  reasonably be expected to have, a material adverse effect on the
condition,  business,  assets,  prospects or operations of any Person taken as a
whole  with its  Subsidiaries;  provided,  however,  that with  respect  to such
Person,  any material changes to such Person's  business,  assets,  prospects or
operations as a result of (i) this Agreement or the  Transactions  or any public
announcement  or  similar  publicity  with  respect  to  this  Agreement  or the
Transactions;  or (ii)  changes in such  Person's  industry or general  economic
conditions  in the United States or the world shall not be deemed to have had or
to in the  future  have a  Materially  Adverse  effect  on  such  Person  or its
condition, business, assets, prospects or operations.

      "Material  Contracts" means,  whether or not in writing,  (a) Arrangements
entered  into  outside of the  Ordinary  Course of  Business;  (b)  Arrangements
involving an obligation  which cannot or in reasonable  probability  will not be
performed  or  terminated  within  one  year  from the date  entered  into;  (c)
Arrangements  affecting  ownership of, title to, use of, or any interest in real
estate; (d) Intellectual  Property licensing agreements and all other agreements
and  commitments  with  respect  to  Intellectual  Property  rights,   including
Arrangements  with  current  or former  employees,  consultants  or  contractors

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<PAGE>

regarding the appropriation or the non-disclosure of any Intellectual  Property;
(e)  Arrangements,  whether in the  Ordinary  Course of Business  or not,  which
involve  capital  expenditures,  future  payments,  performance  of  services or
delivery of goods and/or  materials,  to or by the Company  which in the case of
any single or series of  related  Arrangements,  involve  value in excess of One
Hundred  Thousand  Dollars  (U.S.$100,000);  (f)  powers  of  attorney  that are
currently  effective and outstanding;  (g) Arrangements with respect to borrowed
moneys,  guarantees,   letters  of  credit  or  the  creation  of  a  Lien;  (h)
Arrangements  involving  employment,  severance  obligations  or other  Employee
Benefit Plans;  (i) Arrangements  containing  restrictions on the conduct of the
Company's or its Subsidiaries' business,  including, without limitation,  grants
of  exclusivity  with  respect to  products,  services or  geographic  areas and
non-competition and non-solicitation  restrictions;  (j) Arrangements  regarding
ownership  of or  investments  in any Person  (including,  but not  limited  to,
investments in joint ventures or minority  investments;  (k)  Arrangements  with
airlines or hotels for the purchase of services at other than  published  rates;
(l) other Arrangements that are material to the conduct of the Company's and its
Subsidiaries'  business;  and (m) each  amendment,  supplement and  modification
(whether oral or written) in respect to any of the foregoing.

      "Merger" has the meaning set forth in the Recitals of this Agreement.

      "Merger  Consideration"  has the meaning set forth in Section 3(b) of this
Agreement.

      "Merger  Consideration  Per Share"  means the Merger  Consideration  to be
distributed with respect to each Share in accordance with this Agreement.

      "Merger  Expenses" means (i) the aggregate amount to satisfy and discharge
all Company Indebtedness including, without limitation, the Amadeus/Terra Loans;
(ii) the Stay Pay Bonuses;  (iii) all payments to Michael Thomas pursuant to the
terms of the Separation Agreement and Release of Claims, effective as of October
1,  2004,  by and  between  the  Company  and  Michael  Thomas;  (iv) the  costs
associated with any directors and officers insurance policy of the Company;  and
(v) all of the costs and  expenses  incurred by the Company in  connection  with
this  Agreement  and the  Related  Documents  and the  Transactions,  including,
without  limitation,  all costs and  expenses  related  to the  cancellation  or
termination of Options, and the fees, costs and expenses of Libra Securities and
any other  broker or  finder  employed,  authorized  or  retained  by any of the
Company, the Shareholders or their respective  Representatives  (including,  but
not limited, to Allen & Company Incorporated).

      "Merger  Sub" has the meaning set forth in the opening  paragraph  of this
Agreement.

      "Net Merger  Consideration"  means the amount of the Merger  Consideration
less the aggregate amount of the Merger Expenses.

      "Net Merger Consideration Per Share" means the Net Merger Consideration to
be distributed with respect to each Share in accordance with this Agreement.

      "Options" has the meaning set forth in Section 5(c) of this Agreement.

      "Option  Consideration"  has the meaning set forth in Section 5(c) of this
Agreement.

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<PAGE>

      "Order" means any award, decision,  injunction,  judgment,  order, ruling,
subpoena,  or  verdict  entered,   issued,  made,  or  rendered  by  any  court,
administrative agency, or other Government Authority or by any arbitrator.

      "Ordinary  Course of  Business"  means an action taken by a Person will be
deemed to have been taken in the  "Ordinary  Course of Business"  only if all of
the following are true: (a) such action is consistent with the past practices of
such  Person  and is taken  in the  ordinary  course  of the  normal  day-to-day
operations  of such Person;  (b) such action is not required to be authorized by
the board of  directors  of such  Person  (or by any  person or group of Persons
exercising similar authority) and is not required to be specifically  authorized
by the parent company (if any) of such Person; and (c) such action is similar in
nature and magnitude to actions customarily taken,  without any authorization by
the board of directors (or by any Person or group of Persons  exercising similar
authority),  in the ordinary course of the normal day-to-day operations of other
Persons that are in the same line of business as such Person.

      "party" and "parties"  has the meaning set forth in the opening  paragraph
of this Agreement.

      "Paying Agent Agreement" means that certain Paying Agent Agreement,  dated
as of the Closing  Date, by and among the Company,  the Buyer,  the Escrow Agent
and the Shareholders, substantially in the form of Exhibit C attached hereto.

      "Patents"  has  the  meaning  set  forth  in  Section  10.7(a)(i)  of this
Agreement.

      "Permitted  Liens"  means (i) liens for Taxes,  assessments,  governmental
charges or levies or mechanics' and other statutory liens which are not material
in amount relative to the property  affected and which are not yet delinquent or
can be paid without  penalty or are being contested in good faith by appropriate
Proceedings in respect  thereof;  and (ii)  imperfections of title which are not
substantial  in  amount  relative  to the  property  affected  and  which do not
materially  interfere  with the present use of the property  subject  thereto or
affected thereby.

      "Person"  (whether  or not such term is  capitalized)  means  all  natural
persons, corporations,  trusts, associations,  joint ventures, limited liability
companies  and  other  entities,   and   governments,   agencies  and  political
subdivisions.

      "Policies" has the meaning set forth in Section 10.20 of this Agreement.

      "Pre-Closing  Statement  of Working  Capital" has the meaning set forth in
Section 4(c)(2) of this Agreement.

      "Preferred  Stock" means the preferred  stock, par value $0.001 per share,
of the Company.

      "Proceeding" means any action, arbitration, audit, hearing, investigation,
proceeding or suit (whether civil, criminal,  administrative,  investigative, or
informal)  commenced,  brought,  conducted,  or heard by or before, or otherwise
involving, any Governmental Authority or arbitrator.

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<PAGE>

      "Proprietary  Rights  Agreement"  has the  meaning  set  forth in  Section
10.13(a)(ii) of this Agreement.

      "Related  Documents" has the meaning set forth in Section  13.1(b) of this
Agreement.

      "Related Person" with respect to a particular  individual  includes all of
the following: (a) each other member of such individual's Family; (b) any Person
that is directly or  indirectly  controlled  by such  individual  or one or more
members of such individual's  Family; (c) any Person in which such individual or
members of such  individual's  Family hold  (individually or in the aggregate) a
Material  Interest;  and (d) any Person with respect to which such individual or
one or more members of such individual's  Family serves as a director,  officer,
partner, executor, or trustee (or in a similar capacity).

      With  respect to a specified  Person  other than an  individual,  "Related
Person"  includes  all of  the  following:  (a)  any  Person  that  directly  or
indirectly controls,  is directly or indirectly controlled by, or is directly or
indirectly under common control with such specified Person;  (b) any Person that
holds a Material Interest in such specified Person;  (c) each Person that serves
as a director,  officer,  partner,  executor or trustee of such specified Person
(or in a similar capacity);  (d) any Person in which such specified Person holds
a Material Interest;  (e) any Person with respect to which such specified Person
serves as a general partner or a trustee (or in a similar capacity); and (f) any
Related Person of any individual described in clause (b) or (c).

      For  purposes  of this  definition,  (a)  the  "Family"  of an  individual
includes  (i) the  individual,  (ii) the  individual's  spouse,  (iii) any other
natural  person who is  related to the  individual  or the  individual's  spouse
within the second  degree,  and (iv) any other  natural  person who resides with
such individual, and (b) "Material Interest" means direct or indirect beneficial
ownership (as defined in Rule 13d-3 under the  Securities  Exchange Act of 1934,
as amended) of voting securities or other voting interests representing at least
10% of the  outstanding  voting power of a Person or equity  securities or other
equity interests  representing at least 10% of the outstanding equity securities
or equity interests in a Person.

      "Representative"  with respect to a particular Person, means any director,
officer,  employee, agent, consultant,  advisor, or other representative of such
Person, including legal counsel, accountants, and financial advisors.

      "SEC" means the U.S. Securities and Exchange Commission.

      "SEC  Documents"  has  the  meaning  set  forth  in  Section  9.8 of  this
Agreement.

      "Securities  Act" means the  Securities  Act of 1933, as amended,  and the
rules and regulations promulgated thereunder.

      "Security Agreements" means those certain Security Agreements by and among
the Buyer and each of the Shareholders, to be entered into pursuant to the terms
of the  Convertible  Promissory  Notes,  substantially  in the form of Exhibit F
attached hereto.

      "Share  Certificates"  has the meaning  set forth in Section  5(a) of this
Agreement.

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<PAGE>

      "Shares" has the meaning set forth in the Recitals of this Agreement.

      "Shareholder"  and  "Shareholders"  have  the  meanings  set  forth in the
opening paragraph of this Agreement.

      "Shareholder Representative" has the meaning set forth in Section 16.12 of
this Agreement.

      "Software  Documentation"  means all  documents,  other  written  material
(including   user  and  support   manuals,   flowcharts  and  other   supporting
documentary,  architecture documents, design documents,  requirements documents,
specifications documents and computer material) and source codes which have been
created by or for the Company or its  Subsidiaries or acquired by the Company or
its Subsidiaries relating to, explaining or assisting in the use of the Computer
Software.

      "Software  Rights" means all  intellectual  property  comprised within the
Computer  Software  including,  but not limited to, all  property  and  contract
rights related to the Computer Software which are necessary or incidental to the
development,  support, marketing,  production, licensing or sale of the Computer
Software;  all intellectual property comprised within all other of the Company's
and its  Subsidiaries'  systems,  concepts  or  ideas  related  to the  Computer
Software whether  completed,  in development or  contemplated;  all intellectual
property comprised within customer support and other marketing databases related
to the  Computer  Software;  all  intellectual  property  comprised  within  the
Software  Documentation;  and all  intellectual  property used or required to be
used by the Company and its Subsidiaries in connection with its business.

      "Stay Pay Bonuses" means the following  bonuses paid to certain members of
management of the Company at the Closing:

            (a)   Philip A. Ferri - $96,482

            (b)   Norman Knowles - $92,500

            (c)   Steven J. Pello - $87,500

            (d)   Henry Wang - $62,500

      "Stock  Option  Plans" has the meaning  set forth in Section  5(c) of this
Agreement.

      "Subsidiary"  means, with respect to any Person, any corporation,  limited
liability  company,  partnership,  association or other business entity of which
(i) if a  corporation,  a majority of the total  voting power of shares of stock
entitled  (without  regard to the occurrence of any  contingency) to vote in the
election of  directors,  managers  or  trustees  thereof is at the time owned or
controlled,  directly or indirectly,  by that Person or one or more of the other
Subsidiaries  of that  Person  or a  combination  thereof;  or (ii) if a limited
liability company, partnership, association or other business entity, a majority
of the partnership or other similar  ownership  interest  thereof is at the time
owned or  controlled,  directly  or  indirectly,  by that  Person or one or more
Subsidiaries of that Person or a combination  thereof.  For purposes  hereof,  a

                                       11
<PAGE>

Person or Persons  shall be deemed to have a majority  ownership  interest  in a
limited liability company, partnership,  association or other business entity if
such  Person or  Persons  shall be  allocated  a majority  of limited  liability
company,  partnership,  association or other business  entity gains or losses or
shall be or control any  managing  director or general  partner of such  limited
liability company,  partnership,  association or other business entity.  Buyer's
Subsidiaries for all purposes hereunder excludes Lifestyles Innovations, Inc., a
Nevada corporation.

      "Surviving  Corporation"  has the meaning set forth in Section 2.2 of this
Agreement.

      "Taxes"  means all taxes  imposed of any  nature  and by any  Governmental
Authority,  including,  without limitation, all federal, state, local or foreign
net income, alternative or add-on minimum, assets, gross income, gross receipts,
sales, use, ad valorem,  value-added,  franchise, profits, license, withholding,
communications,  payroll,  employment,  excise,  severance,  stamp,  occupation,
premium,   profit-sharing  payments,  property,  social  benefit  contributions,
windfall profits or similar taxes,  duties,  assessments,  fees, levies or other
similar governmental charges of any kind whatsoever, together with any interest,
penalties,  additions to tax or additional  amounts  imposed  thereon or imposed
with  respect  to any  such  interest,  penalties,  additions  to  tax or  other
additional amounts.

      "Tax  Return"  means  all  returns  (including  any  information  return),
reports,  statements,   schedules,  notices  forms  or  other  documentation  or
information filed or submitted to, or required to be filed with or submitted to,
any  Governmental  Authority in connection with the  determination,  assessment,
collection  or  payment  of any Tax or in  connection  with the  administration,
implementation,  documentation  or enforcement  of or compliance  with any legal
requirement relating to any Tax.

      "Terra"  has the  meaning  set  forth  in the  opening  paragraph  of this
Agreement.

      "Terra Networks" means Terra Networks,  S.A., a company  organized under
the laws of the Kingdom of Spain.

      "Texas Law" has the meaning set forth in Section 2.2 of this Agreement.

      "Threshold  Amount" has the  meaning set forth in Section  15.1(c) of this
Agreement.

      "Trademarks"  has the  meaning  set forth in Section  10.7(a)(ii)  of this
Agreement.

      "Trade  Secrets" has the meaning set forth in Section  10.7(a)(iv) of this
Agreement.

      "Transactions" means the transactions contemplated by this Agreement.

      "Transfer  Taxes" has the  meaning  set forth in  Section  12.7(b) of this
Agreement.

      "URLs"  has  the  meaning  set  forth  in  Section  10.7(a)(vii)  of  this
Agreement.

      "Working Capital  Adjustment" has the meaning set forth in Section 4(c)(3)
of this Agreement.

                                       12
<PAGE>

      "Working  Capital  Amount" means an amount equal to the sum of the current
assets of the Company  (excluding the Merger  Expenses to the extent they appear
in the  current  liabilities  of  the  Company)  minus  the  sum of the  current
liabilities  of the Company  (excluding  the Merger  Expenses to the extent they
appear in the current  assets of the Company),  determined  in  accordance  with
GAAP.

      "Working  Capital  Review  Period"  has the  meaning  set forth in Section
4(c)(4) of this Agreement.

      "Working Capital  Settlement  Amount" means an amount equal to the greater
of twenty percent (20%) of the Estimated Working Capital Amount or $100,000.

2.    Deposit; The Merger.

      2.1  Initial  Deposit.   Contemporaneously  with  the  execution  of  this
Agreement  by the  parties,  Buyer  shall pay to the  Escrow  Agent the  Initial
Deposit  Amount by wire transfer of  immediately  available  funds in accordance
with the terms of the Escrow Agreement.

      2.2 Merger. Subject to the terms and conditions of this Agreement,  Merger
Sub will be merged with and into the Company in accordance  with the laws of the
State of Texas ("Texas  Law"),  whereupon  the separate  existence of Merger Sub
shall cease,  and the Company  shall be the surviving  corporation  (the Company
following  the  Merger  is  sometimes  referred  to  herein  as  the  "Surviving
Corporation").

      2.3 Articles of Merger and  Certificate of Merger.  As soon as practicable
after satisfaction of, or to the extent permitted  hereunder,  waiver of, all of
the conditions to the Merger,  the Company and Merger Sub shall file Articles of
Merger (the  "Articles of Merger")  with the  Secretary of State of the State of
Texas and make all such other  filings or  recordings  required  by Texas Law in
connection  with the Merger.  The Merger shall become  effective at such time as
the Articles of Merger is duly filed with the Secretary of State of the State of
Texas, in accordance  with the relevant  provisions of Texas Law (the "Effective
Time").  The date on which the Effective  Time shall occur is referred to herein
as the "Effective Date."

      2.4  Surviving  Corporation.  From  and  after  the  Effective  Time,  the
Surviving  Corporation shall possess all of the rights,  privileges,  powers and
franchises and be subject to all of the restrictions, disabilities and duties of
the Company and Merger Sub, all as provided under Texas Law.

3.    Conversion of Shares.

      (a) At the Effective Time:

            (i) each share of common stock of Merger Sub outstanding immediately
      prior to the Effective Time shall  automatically and without any action on
      the part of the  holder  thereof,  be  converted  into one share of common
      stock of the Surviving Corporation.

                                       13
<PAGE>

            (ii) each issued and outstanding  Share that is held in the treasury
      of the Company shall no longer be outstanding and shall  automatically  be
      cancelled   and  retired   and  shall  cease  to  exist,   and  no  Merger
      Consideration shall be delivered or deliverable therefor.

            (iii) each  issued and  outstanding  Share shall  automatically  and
      without  any  action  on  the  part  of the  holder  thereof  cease  to be
      outstanding  and be  converted  into the right to  receive  the Net Merger
      Consideration Per Share, if any, payable in the manner provided in Section
      5  hereof.  All  such  Shares,  when so  converted,  shall  no  longer  be
      outstanding  and shall  automatically  be cancelled  and retired and shall
      cease to exist, and each holder of a certificate  representing any of such
      Shares  shall cease to have any rights with  respect  thereto,  except the
      right to receive the Net Merger  Consideration Per Share, if any, therefor
      upon the  surrender  of such  certificate  in  accordance  with  Section 5
      hereof.

      (b) "Merger Consideration" means (i) the Initial Deposit Amount, plus (ii)
the Convertible Promissory Notes, plus (iii) the Closing Deposit Amount, if any,
plus (iv) $10,500,000 in cash.

4.    Merger Consideration Payment; Working Capital Adjustment.

      (a) Upon the Effective Time,  subject to the satisfaction or waiver of the
conditions set forth in Sections 13.1, 13.2 and 13.3 hereof, the Buyer or Merger
Sub shall deliver to the Escrow Agent the Merger  Consideration  (as adjusted in
accordance  with Section  4(c)(2)  below).  Subject to the last sentence of this
Section, the parties agree that the cash portion of the Net Merger Consideration
shall be distributed to the shareholders of the Company in accordance with their
percentage  ownership  of the Shares.  Furthermore,  the parties  agree that the
Convertible  Promissory Notes shall be issued to the Shareholders  and/or IGT as
determined  among the Shareholders  individually and IGT at Closing.  In lieu of
accepting a Convertible Promissory Note as part of the Net Merger Consideration,
each of the remaining shareholders of the Company shall be paid in cash from the
cash portion of the Net Merger  Consideration  an amount equal to the  principal
amount of the Convertible  Promissory Notes such shareholder would have received
in accordance with their pro rata percentage  ownership of the Shares. By way of
example, the attached Exhibit E is an estimate of the cash amounts to be paid to
the Company's  shareholders.  At the Closing, the parties will prepare a closing
statement  in  the  Form  of  Exhibit  E  with  the  actual  amounts  of  Merger
Consideration and Merger Expenses.

      (b) Upon receipt of the Merger Consideration, the Escrow Agent shall first
pay the Merger Expenses from the cash portion of the Merger  Consideration  then
distribute the Net Merger  Consideration,  minus the Working Capital  Settlement
Amount, to the shareholders of the Company in accordance with Section 4(a) and 5
and the terms of the  Paying  Agent  Agreement  and the  Escrow  Agreement.  The
Company and the  Shareholders  acknowledge and agree that neither the Buyer, the
Surviving Corporation, nor the Merger Sub has, or shall have, any responsibility
or liability for the payment of the Merger  Expenses or the  distribution of the
Net Merger Consideration to the shareholders of the Company, except distribution
to the  Escrow  Agent and the  Paying  Agent as set forth in this  Section 4. In
accordance  with  the  terms  of the  Escrow  Agreement  and  the  Paying  Agent
Agreement,  the Escrow Agent shall retain the Working Capital  Settlement Amount
from  the  cash  portion  of the Net  Merger  Consideration  until  the  parties
determine the Final Working Capital Adjustment Amount.

                                       14
<PAGE>

      (c)  The  parties   agree  that  the  cash   portion  of  the  Net  Merger
Consideration will be subject to the following adjustments:

            (1) The  cash  portion  of the Net  Merger  Consideration  shall  be
      adjusted,  dollar for dollar, to the extent that the Final Working Capital
      Amount as set forth on the Final  Statement of Working  Capital is greater
      or less  than the  Estimated  Working  Capital  Amount as set forth on the
      Pre-Closing Statement of Working Capital.

            (2) At least three (3) days prior to the  Closing,  the Company will
      estimate the Working Capital Amount as of the Closing Date (the "Estimated
      Working   Capital   Amount"),   prepare  a  preliminary   statement   (the
      "Pre-Closing  Statement  of Working  Capital")  of the  Estimated  Working
      Capital Amount and deliver the Pre-Closing Statement of Working Capital to
      the Buyer. In the event that the Estimated  Working Capital Amount is less
      than the zero (0),  then the cash portion of the Net Merger  Consideration
      shall be reduced by such amount.  In the event that the Estimated  Working
      Capital  Amount is more than zero (0),  then the cash  portion  of the Net
      Merger Consideration shall be increased by such amount.

            (3)  Within  thirty  (30)  days  following  the  Closing  Date,  the
      Surviving  Corporation,  with the assistance and cooperation of the Buyer,
      shall prepare and deliver to the  Shareholder  Representative  a statement
      (the "Final  Statement of Working  Capital")  setting forth (i) the actual
      Working  Capital Amount as of the Closing Date (the "Final Working Capital
      Amount"), (ii) the difference between the Final Working Capital Amount and
      zero (0) (the "Working Capital Adjustment"), (iii) the cash portion of the
      Net Merger  Consideration  plus or minus the Working Capital Adjustment as
      appropriate  (the  "Adjusted  Cash  Merger  Consideration"),  and (iv) the
      difference  between the cash portion of the Net Merger  Consideration paid
      by the Buyer at the  Closing  (adjusted  as set forth in  Section  4(c)(2)
      above)  and  the  Adjusted  Cash  Merger  Consideration  (such  difference
      referred to herein as the "Final Adjustment Amount").

            (4) The  Shareholders  shall have  fifteen (15) days  following  the
      Shareholder  Representative's  receipt of the Final  Statement  of Working
      Capital (the "Working  Capital  Review  Period") to review the same. On or
      before  the  expiration  of  the  Working   Capital  Review  Period,   the
      Shareholder  Representative shall deliver to the Buyer a written statement
      accepting or objecting to the Final Statement of Working  Capital.  In the
      event that the Shareholders shall object to the Final Statement of Working
      Capital,  such  statement  shall  include a  detailed  itemization  of the
      Shareholders' objections and their reasons for such objections. If no such
      statement  is  delivered by the  Shareholder  Representative  to the Buyer
      within the  Working  Capital  Review  Period,  the  Shareholders  shall be
      conclusively  deemed to have  accepted  the  Final  Statement  of  Working
      Capital.

                                       15
<PAGE>

            (5) If the cash portion of the Net Merger  Consideration paid by the
      Buyer at the Closing (adjusted as set forth in Section 4(c)(2)) is greater
      than the Adjusted Cash Merger  Consideration,  then the Escrow Agent shall
      pay the  Buyer  the  Final  Adjustment  Amount  from the  Working  Capital
      Settlement  Amount  (as a  reduction  to the cash  portion  of the  Merger
      Consideration) by wire transfer of immediately  available funds within ten
      (10) days of the  determination  by the  Shareholders and the Buyer of the
      Final Statement of Working Capital.  If the cash portion of the Net Merger
      Consideration  paid by the Buyer at the Closing  (adjusted as set forth in
      Section 4(c)(2)) is less than the Adjusted Cash Merger Consideration, then
      the Buyer  shall pay the  Escrow  Agent the Final  Adjustment  Amount  (as
      additional  cash Merger  Consideration)  by wire  transfer of  immediately
      available  funds  within  ten  (10)  days  of  the  determination  by  the
      Shareholders and the Buyer of the Final Statement of Working Capital.

            (6) The Final  Statement of Working  Capital  shall be prepared from
      the books and records of the Surviving Corporation in accordance with GAAP
      applied on a basis  consistent  with that used in the  preparation  of the
      Financial Statements.

            (7) In the  event  that the  Shareholders  shall  accept or shall be
      conclusively  deemed to have  accepted  the  Final  Statement  of  Working
      Capital as prepared and delivered by the Shareholder  Representative,  the
      Final  Statement  of Working  Capital  shall be used for the  purposes  of
      determining any adjustment to the cash portion of the Merger Consideration
      in  accordance  with  this  Section  4. In the  event,  however,  that the
      Shareholder  Representative shall object to the Final Statement of Working
      Capital  within  the  Working  Capital  Review  Period,   the  Shareholder
      Representative and the Buyer shall promptly meet and in good faith attempt
      to  resolve  such  objection(s).  Any such  objection(s)  which  cannot be
      resolved  between  the Buyer  and the  Shareholder  Representative  within
      thirty  (30) days  following  the  Buyer's  receipt  of the  Shareholders'
      statement  of  objection(s)  shall  be  resolved  in  accordance  with the
      procedures set forth in Section  4(c)(8).  The Final  Statement of Working
      Capital,  as adjusted to reflect the adjustments  agreed upon by the Buyer
      and the  Shareholders  or determined in accordance  with Section  4(c)(8),
      shall be used for  purposes  of  determining  any  adjustment  to the cash
      portion of the Merger Consideration in accordance with Section 4(c)(1).

            (8)  If  the  Buyer  and  the   Shareholders   cannot   resolve  the
      objection(s) of the Shareholders to the Final Statement of Working Capital
      in  accordance  with  Section  4(c)(7)  above,  either  the  Buyer  or the
      Shareholders,  by written notice to the other,  may elect to have any such
      disagreement  tendered to and  resolved by a mutually  acceptable  firm of
      independent  certified public accountants of recognized  national standing
      ("Accountant")  to make a  determination  as to the subject matter of such
      disagreement,  which  determination  shall be  final  and  binding  on the
      parties hereto for the purpose of this Agreement.  The final determination
      of the  Accountant  with  respect to the Working  Capital  Amount shall be
      considered  the  "Final  Working  Capital  Amount"  for  purposes  of this
      Agreement.  The Buyer and the Shareholders  shall each pay one-half of the
      fees  and  expenses  charged  by such  Accountant.  If the  Buyer  and the
      Shareholders   are   unable  to  agree  on  the   Accountant   within  the
      aforementioned  thirty  (30)  day  period,  then the  Accountant  shall be

                                       16
<PAGE>

      Deloitte  &  Touche.  The  Accountant  shall be  instructed  to use  every
      reasonable effort to perform its function as efficiently and inexpensively
      as possible within thirty (30) days following  submission of the matter to
      it and, in any case, as soon as practicable  after such  submission to it.
      The Accountant  shall be limited to deciding each such  disagreement in an
      amount  which shall be equal to or in between the amounts  proposed by the
      Buyer and the Shareholders,  and no more and no less. The determination by
      the Accountant shall be based solely on written  materials  provided to it
      by the parties and on presentations by the Shareholders,  on the one hand,
      and the Buyer,  on the other hand,  and shall not involve any  independent
      review.

            (9) The Shareholder  Representative shall represent the Shareholders
      in connection with all matters under this Section 4(c).

5.    Exchange of Certificates.

      (a) At  and  after  the  Effective  Time,  each  certificate  representing
outstanding  Shares  will be deemed  held by the holder of record as recorded on
the stock records of the Company  immediately  prior to the  Effective  Time. As
soon as practicable after the Effective Time (but in no event less than five (5)
days after the Effective  Time),  the Surviving  Corporation and the Shareholder
Representative  shall cause the Escrow Agent in accordance with the terms of the
Paying Agent  Agreement to mail to each record holder of Shares a form of letter
of  transmittal   ("Letter  of   Transmittal")   and  instructions  for  use  in
surrendering  the certificates  for such Shares (the "Share  Certificates")  for
cancellation  and  receiving the Net Merger  Consideration  to which such holder
shall be entitled  therefor,  if any. By  execution  and delivery of a Letter of
Transmittal,  a holder shall be deemed to consent to the terms of the Merger set
forth  in  this   Agreement,   including  the   appointment   of  a  Shareholder
Representative  pursuant to Section  16.11.  Promptly after receipt of any Share
Certificates,  the  Escrow  Agent  shall  notify  the Buyer and the  Shareholder
Representative  of such receipt and the Escrow Agent shall deliver to the holder
thereof it, his or her portion of the Net Merger Consideration.

      (b) The Net Merger Consideration,  if any, delivered upon the surrender of
Share  Certificates in accordance with the terms hereof will be delivered by the
Escrow  Agent to the holder of record as  recorded  on the stock  records of the
Company immediately prior to the Effective Time. After the Effective Time, there
will be no further registration of transfers of the Shares on the stock transfer
books of the Company.  If, after the  Effective  Time,  Share  Certificates  are
presented  for  transfer  or for any other  reason,  they will be  canceled  and
exchanged  and the  Net  Merger  Consideration,  if any,  will be  delivered  in
exchange  therefor in  accordance  with this  Section 5. The Escrow  Agent shall
accept  Share  Certificates  upon  compliance  with  such  reasonable  terms and
conditions as the Escrow Agent may impose to effect an orderly  exchange thereof
in accordance with normal exchange practices.

      (c) The Company  shall take such action in order  that,  at the  Effective
Time, any options,  warrants,  rights,  calls,  agreements,  convertible  notes,
convertible  securities  or other  commitments  granted  under any Company stock
option  plan or  agreement  or  pursuant  to which any  Person  has the right to
acquire Common Stock,  whether through acquisition or conversion  (collectively,
as such plans or agreements may have been amended, supplemented or modified from

                                       17
<PAGE>

time to time,  the "Stock Option Plans") that are  unexercised  or  unconverted,
whether  or not  then  exercisable  or  convertible  (the  "Options"),  shall be
extinguished  by virtue of the Merger and  converted  into the right to receive,
for each share of Common Stock  subject to such Option,  an amount in cash equal
to the excess,  if any, of the Net Merger  Consideration  Per Share over the per
share  exercise  price of such  Option  (such  excess  being  referred to as the
"Option  Consideration"),  and such  amount  less  the  amount  of any  required
withholding  taxes shall be paid to the holder of such Option.  The surrender of
an Option in exchange for the Option Consideration shall constitute a release of
any and all  rights  the  holder  had or may have had in the  Option.  All Stock
Option Plans shall  terminate as of the Effective Time and the provisions in any
other plan,  program or  arrangement  providing for the issuance or grant of any
other  interest  in  respect  of the  capital  stock  of the  Company  shall  be
extinguished  as of  the  Effective  Time.  The  Surviving  Corporation  or  the
Shareholder  Representative,  as  applicable,  shall be  entitled  to deduct and
withhold from the Net Merger  Consideration  otherwise  payable pursuant to this
Agreement  to any  former  holder  of  Options  such  amounts  as the  Surviving
Corporation  or the  Shareholder  Representative,  as the  case  may be,  may be
required to deduct and withhold with respect to the making of such payment under
the Code or any  provision of state,  local or foreign tax law. To the extent so
withheld,  such amounts  shall be treated for all purposes of this  Agreement as
having  been paid to the  former  holder of  Options  in  respect  of which such
deduction and withholding was made.

      (d)  Upon  and  after  the  Effective  Time,   until  Share   Certificates
representing   Shares  are   surrendered   pursuant  to  this  Section  5,  such
certificates  shall not represent an ownership right in the Company and shall be
deemed,  for all purposes,  solely to evidence ownership of the right to receive
the Net Merger Consideration Per Share, if any, in accordance with Section 5.

      (e) Any portion of the Net Merger  Consideration  (including  any earnings
thereon)  which remains  undistributed  to the holders of the Shares for one (1)
year after the Effective  Time shall be delivered to the Surviving  Corporation,
upon  demand,  and any  holders  of shares of Shares  who  theretofore  have not
complied  with  this  Section 5  thereafter  shall  look  only to the  Surviving
Corporation and only as general creditors thereof for payment of their claim for
any Merger Consideration.

6.    Dissenting Shares. Notwithstanding Section 3, Shares outstanding
immediately prior to the Effective Time and held by a holder who has not voted
in favor of the Merger or consented thereto in writing and who has demanded
appraisal for such Shares in accordance with Texas Law shall not be converted
into a right to receive the Merger Consideration, unless such holder fails to
perfect or withdraws or loses the right to appraisal. If after the Effective
Time such holder fails to perfect or withdraws or loses the right to appraisal,
such Shares shall be treated as if they had been converted as of the Effective
Time into a right to receive the Net Merger Consideration. The Company shall
give prompt notice to the Buyer of any demands received by the Company for
appraisal of any shares of Common Stock, together with copies of any
correspondence or filings related thereto, and the Buyer shall have the right to
participate in and direct all negotiations and proceedings with respect to such
demands. Prior to the Effective Time, the Company shall not, without the prior
written consent of the Buyer, make any payment with respect to, or settle or
offer to settle, any such appraisal demands, or agree to do any of the
foregoing.

                                       18
<PAGE>

7.    The Surviving Corporation.

      7.1 Articles of Incorporation. The Articles of Incorporation of Merger Sub
as in effect  immediately  prior to the Effective  Time shall be the Articles of
Incorporation of the Surviving Corporation.

      7.2 Bylaws.  The Bylaws of Merger Sub in effect  immediately  prior to the
Effective Time shall be the Bylaws of the Surviving Corporation.

      7.3  Directors  and Officers.  From and after the  Effective  Time,  until
successors  are duly  elected or appointed  and  qualified  in  accordance  with
applicable  law,  the  directors  and the initial  officers of Merger Sub at the
Effective  Time  shall  become  directors  and  the  officers  of the  Surviving
Corporation  and the Officers and Directors of the Company shall cease to act as
such at such time.

8.    Closing. The closing of the Transactions (the "Closing") in accordance
with the terms and conditions of this Agreement shall take place at the offices
of Haynes and Boone, L.L.P., located at 399 Park Avenue, New York, New York
10022, at 10:00 a.m. E.S.T. or such other location and time of day as the
Company, the Shareholders and the Buyer mutually agree upon, which date shall be
no later than March 14, 2005 (including any extension thereof pursuant to this
Section 8, the "Closing Date"). The Closing Date may be extended for up to
thirty-one (31) days following March 14, 2005 until April 14, 2005 by Buyer upon
at least five (5) days prior written notice to the Company before March 14, 2005
and payment to the Escrow Agent of $100,000 by wire transfer of immediately
available funds (the "Closing Deposit Amount"). The Closing may, with the
consent of all parties, take place by delivering an exchange of documents by
facsimile transmission with originals to follow by overnight mail service
courier. If the Closing occurs, all the representations and warranties contained
in Articles 9, 10 and 11 are deemed to be remade as of the Closing Date (in
addition to having been given as of the date hereof) (other than any
representation or warranty that expressly relates to a specific date, which
representation and warranty shall be correct on the date so specified), without
giving effect to any notices given pursuant to 12.6(a) or (b) hereof.

9.    Representations and Warranties of the Buyer and Merger Sub. The Buyer and,
where applicable, Merger Sub hereby, jointly and severally, represent, warrant
and covenant to the Company and the Shareholders the following:

      9.1  Organization,  Good  Standing  and  Qualification.  The  Buyer  is  a
corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware.  Merger Sub is a corporation  duly organized,  validly
existing and in good  standing  under the laws of the State of Texas.  The Buyer
and Merger Sub are each duly qualified to transact business and in good standing
in each  jurisdiction  in which the failure to so qualify  would have a material
adverse effect on its business or  properties.  Merger Sub conducted no business
prior to the date hereof.

      9.2     Capitalization  and Voting Rights.  The authorized capital stock
of the Buyer as of the date of this Agreement consists of:

                                       19
<PAGE>

                  (i)  200,000,000  shares  of  Buyer  Common  Stock,  of  which
            28,906,009  shares  are issued  and  outstanding  as of the Close of
            business on February 9, 2005; and

                  (ii)  10,000,000  shares of Buyer  Preferred  Stock,  of which
            1,529,209  shares  are  issued  and  outstanding  as of the Close of
            business on February 9, 2005.

      The  outstanding  shares of Buyer Common Stock and Buyer  Preferred  Stock
(collectively,  "Buyer Capital  Stock") are all duly and validly  authorized and
issued,  fully  paid  and  nonassessable.  Set  forth  on  Schedule  9.2  of the
Disclosure  Schedule  is a  listing  as of the  date  of this  Agreement  of all
outstanding options,  warrants,  rights, calls,  agreements,  convertible notes,
convertible securities or other commitments granted under any Buyer stock option
plan or agreement or pursuant to which any Person has the right to acquire Buyer
Capital Stock,  whether  through  acquisition or conversion  (collectively,  the
"Buyer  Options"),  or agreements for the purchase or acquisition from the Buyer
of, or securities convertible into, any shares of Buyer Capital Stock, including
the number of shares of Buyer Capital Stock subject thereto,  and as of the date
hereof there are no other  Arrangements  relating to the issuance,  sale, grant,
transfer,  redemption or purchase by the Buyer of any equity or other securities
of the Buyer.  None of the outstanding  equity securities or other securities of
the Buyer was issued in violation of  preemptive  or  subscription  rights,  the
Securities Act or any other Legal Requirement.  No shares of Buyer Capital Stock
are held by the Buyer in its treasury as of the date of this Agreement.

      9.3  Subsidiaries.  Except as set forth on Schedule 9.3, other than Merger
Sub, the Buyer does not presently own or control,  directly or  indirectly,  any
interest in any other corporation, association, or other business entity. Except
as set forth on  Schedule  9.3 of the  Disclosure  Schedule,  the Buyer is not a
participant in any joint venture,  partnership, or similar arrangement,  nor has
the  Buyer  entered  into,  or have  the  present  intent  to  enter  into,  any
Arrangement to acquire any equity  securities or other security of any Person or
any direct or indirect equity or ownership interest in any other business.

      9.4 Authorization.  Other than stockholder approval of the issuance of the
Buyer Common Stock issuable upon conversion of the Convertible  Promissory Notes
and registration thereof with the appropriate  Governmental  Authority and stock
exchange,  all corporate  action on the part of the Buyer and Merger Sub and its
officers, directors and stockholders necessary for the authorization,  execution
and delivery of this Agreement and the Related Documents, and the performance of
all  obligations  of the Buyer and Merger Sub hereunder and  thereunder has been
taken or will be taken prior to the Closing.  This  Agreement,  and each Related
Document  to  which  it is a party  will  after  the  Closing  will  constitute,
constitutes the valid and legally binding obligations of the Buyer and/or Merger
Sub,  enforceable  in  accordance  with its  terms,  except  (i) as  limited  by
applicable bankruptcy, insolvency, reorganization,  moratorium and other laws of
general application  affecting  enforcement of creditors' rights generally;  and
(ii) as limited by laws relating to the  availability  of specific  performance,
injunctive relief or other equitable remedies.

                                       20
<PAGE>

      9.5 Governmental  Consents. No consent,  approval,  order or authorization
of, or registration, qualification, designation, declaration or filing with, any
Governmental  Authority  on the part of the Buyer or Merger Sub is  required  in
connection  with the  consummation  of the  Transactions,  except for such other
filings  required  pursuant to applicable  federal and state securities laws and
blue sky laws,  which  filings will be effected  within the  required  statutory
period and filings in connection with AMEX listing requirements.

      9.6     Legal Proceedings; Order.

            (a) Except as set forth in Schedule 9.6 of the Disclosure  Schedule,
      there is no pending  Proceeding  (i) that has been commenced by or against
      the Buyer or Merger  Sub or that  otherwise  related  to or may affect the
      business  of, or any of the  assets  owned or used by, the Buyer or Merger
      Sub,  except  such as would not have a  Materially  Adverse  effect on the
      Buyer or Merger Sub; or (ii) that challenges,  or that may have the effect
      of preventing,  delaying,  making illegal, or otherwise  interfering with,
      any of the Transactions. To the Knowledge of the Buyer, no such Proceeding
      has been threatened in a writing delivered to the Buyer.

            (b) Except as set forth in Schedule 9.6 of the Disclosure Schedule:

                  (i) there is no Order to which the Buyer or Merger Sub, or any
            of the assets owned or used by the Buyer or Merger Sub, is subject;

                  (ii) to the  Knowledge of the Buyer,  no event has occurred or
            circumstance  exists  that  may  constitute  or  result  in (with or
            without notice or lapse of time) a violation of or failure to comply
            with any term or  requirement  of any  Order to which  the  Buyer or
            Merger  Sub,  or any of the  assets  owned  or used by the  Buyer or
            Merger Sub, is subject; and

                  (iii) the Buyer and Merger Sub have not received, at any time,
            any notice or other communication (whether oral or written) from any
            Governmental  Authority  or any other Person  regarding  any actual,
            alleged,  possible,  or potential violation of, or failure to comply
            with,  any term or  requirement  of any  Order to which the Buyer or
            Merger  Sub,  or any of the  assets  owned  or used by the  Buyer or
            Merger Sub, is or has been subject.

      9.7   SEC Documents; Buyer Indebtedness.

            (a) The Buyer has made  available to the Company a true and complete
      copy of each report, schedule, registration statement and definitive proxy
      statement  filed  by the  Buyer  with  the SEC  since  December  31,  2003
      (collectively,  the "SEC  Documents"),  which are all the documents (other
      than the  preliminary  materials) that the Buyer was required to file with
      the SEC since December 31, 2003. Except as set forth on Schedule 9.7(a) of
      the Disclosure  Schedule,  as of their respective dates, the SEC Documents
      complied in all material  respects with the requirements of the Securities
      Act or the Exchange Act, as the case may be, and the rules and regulations
      of the SEC thereunder applicable to the SEC Documents, and none of the SEC
      Documents contained as of their respective dates any untrue statement of a
      material  fact or omitted to state a material  fact  required to be stated
      therein  or  necessary  to make the  statements  therein,  in light of the
      circumstances under which they were made, not misleading.

                                       21
<PAGE>

            (b)  Except  as set  forth  on  Schedule  9.7(b)  of the  Disclosure
      Schedule,  the  financial  statements  of the Buyer,  included  in the SEC
      Documents,  including the notes and schedules thereto, complied as to form
      in all material  respects with the rules and  regulations  of the SEC with
      respect  thereto,  were  prepared  in  accordance  with GAAP  applied on a
      consistent  basis  during the  periods  involved  and fairly  present  the
      consolidated   financial  position  of  the  Buyer  and  its  consolidated
      Subsidiaries as of their respective dates and the consolidated  results of
      operations  and  the  consolidated   cash  flows  of  the  Buyer  and  its
      consolidated  Subsidiaries for the periods presented therein in accordance
      with  applicable  requirements  of  GAAP  (subject,  in  the  case  of the
      unaudited statements, to normal, recurring adjustments,  none of which are
      material) applied on a consistent basis during the periods presented.

            (c) Schedule 9.7(c) of the Disclosure  Schedule  describes all Buyer
      Indebtedness,  including  the  identity  of the Persons to whom such Buyer
      Indebtedness is owed and the principal  amount of such Buyer  Indebtedness
      as of the date hereof.

      9.8 Intellectual  Property. The Buyer and its Subsidiaries own, possess or
license, or to the Buyer's Knowledge,  can acquire on reasonable terms, adequate
patents, patent rights, licenses,  inventions,  copyrights,  know-how (including
trade  secrets  and  other  unpatented   and/or   unpatentable   proprietary  or
confidential  information,  systems or procedures),  trademarks,  service marks,
trade names or other intellectual  property  (collectively,  "Buyer Intellectual
Property")  necessary  to carry on the  business of now  operated  by them,  and
neither  the Buyer  nor any of its  Subsidiaries  have  received  any  notice or
otherwise has Knowledge of any  infringement of or conflict with asserted rights
of any Person with respect to any Buyer Intellectual  Property  (including Buyer
Intellectual  Property which is licensed) or of any facts or circumstances which
would render any Buyer  Intellectual  Property  invalid or inadequate to protect
the  interests  of the  Buyer  or any of its  Subsidiaries  therein,  and  which
infringement or conflict (if the subject of any unfavorable decision,  ruling or
finding)  or  invalidity  or  inadequacy,  singly  or in  the  aggregate,  could
reasonably be expected to result in a Materially  Adverse effect on the Buyer or
its Subsidiaries.

      9.9 Compliance with Other Instruments.  The Buyer and its Subsidiaries are
not in violation of any provision of (a) their  Certificate of  Incorporation or
Bylaws  or  other  charter  documents,  each as  amended  to date,  nor,  to the
Knowledge of the Buyer,  except as set forth on Schedule  9.9 of the  Disclosure
Schedule, of (b) any Arrangement,  instrument,  judgment, order, writ, decree or
contract,  statute, rule or regulation to which the Buyer or its Subsidiaries or
their assets is subject and a violation of which could have a Materially Adverse
effect on the Buyer or its Subsidiaries.  Except as set forth on Schedule 9.9 of
the  Disclosure  Schedule,  the  execution,  delivery  and  performance  of this
Agreement and the consummation of the  Transactions  will not result in any such
violation, or be in conflict with or constitute,  with or without the passage of
time and giving of notice, either a default under any such provision or an event
that results in the acceleration of any payment or other obligation of the Buyer
or its  Subsidiaries,  the  creation of any Lien upon any assets of the Buyer or
its  Subsidiaries  or the  suspension,  revocation,  impairment,  forfeiture  or
nonrenewal of any material Governmental  Authorization  applicable to the Buyer,
its  Subsidiaries,  their  business  or  operations  or any of their  assets  or
properties.

                                       22
<PAGE>

      9.10  Buyer's  and  Merger  Sub's  Counsel.   The  Buyer  and  Merger  Sub
acknowledges  that the Buyer and Merger Sub have had the  opportunity  to review
this Agreement,  the exhibits and the schedules  attached hereto and the Related
Documents and the transactions  contemplated herein and therein with the Buyer's
and Merger Sub's own legal counsel.

      9.11 No Brokers.  The Buyer and Merger Sub have not employed or authorized
anyone  to  represent  them  as a  broker  or  finder  in  connection  with  the
Transactions,  and no broker or other  person is entitled to any  commission  or
finder's fee from the Buyer or Merger Sub in connection with the Transactions.

      9.12    Compliance with Legal Requirements; Governmental Authorizations.

            (a) Except as set forth in Schedule 9.12 of the Disclosure Schedule:

                  (i) the Buyer and its  Subsidiaries  are and at all times have
            been in material  compliance with each Legal  Requirement that is or
            was  applicable  to them or to the  conduct of  operations  of their
            business  or the  ownership  or use of any of their  assets,  except
            where the  failure  to comply  would not have a  Materially  Adverse
            effect on the Buyer or its Subsidiaries; and

                  (ii) the Buyer and its  Subsidiaries  have not received at any
            time any notice or other  communication  (whether  oral or  written)
            from any  Governmental  Authority or any other Person  regarding (a)
            any actual, alleged,  possible, or potential violation of or failure
            to comply with any Legal  Requirement,  or (b) any actual,  alleged,
            possible,  or potential  obligation  on the part of the Buyer or its
            Subsidiaries to undertake, or to bear all or any portion of the cost
            of, any remedial action of any nature.

            (b) Except as set forth on Schedule 9.12 of the Disclosure Schedule,
      the  Buyer  and its  Subsidiaries  have  each  Governmental  Authorization
      necessary to permit the Buyer and its Subsidiaries to lawfully conduct and
      operate their  business in the manner they  currently  conduct and operate
      such business and to permit the Buyer and its  Subsidiaries to own and use
      their  assets  in the  manner  in which  they  currently  own and use such
      assets,  except  where such failure  could not have a  Materially  Adverse
      effect on the Buyer and Merger Sub.

10.   Representations and Warranties of the Company. The Company hereby
represents and warrants to the Buyer the following:

      10.1  Organization,  Good  Standing  and  Qualification.  The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Texas. The Company is duly qualified to transact business and is
in good standing in each  jurisdiction  in which the failure to so qualify would
have a Materially Adverse effect on its business or properties.

                                       23
<PAGE>

      10.2    Capitalization  and Voting Rights.  The authorized capital stock
of the Company consists of:

                  (i) 200,000,000 Shares, of which 198,937,652 Shares are issued
            and outstanding; and

                  (ii) 2,000,000  shares of Preferred  Stock,  none of which are
            issued and outstanding.

The outstanding  Shares are owned of record and beneficially by the shareholders
of the  Company in the numbers  specified  in  Schedule  10.2 of the  Disclosure
Schedule  attached  hereto.  The  outstanding  Shares  are all duly and  validly
authorized and issued, fully paid and nonassessable.  Set forth on Schedule 10.2
of the  Disclosure  Schedule  is a  description  of all  outstanding  Options or
agreements  for the purchase or  acquisition  from the Company of, or securities
convertible  into,  any shares of its  capital  stock,  including  the number of
shares of capital  stock of the  Company  subject  thereto,  the grant dates and
exercise prices thereof and the names of the holders  thereof,  and there are no
other Arrangements relating to the issuance,  sale, grant, transfer,  redemption
or purchase by the Company of any equity or other securities of the Company. The
Company has delivered to the Buyer true and complete copies of all  Arrangements
governing the Options.  Except as set forth on Schedule  10.2 of the  Disclosure
Schedule,  all  outstanding  warrants to purchase shares of the capital stock of
the Company  shall have been either  exercised by the holder  thereof or expired
pursuant to the terms thereof as of  immediately  prior to the Closing.  None of
the outstanding  equity securities or other securities of the Company was issued
in violation of preemptive or  subscription  rights,  the  Securities Act or any
other Legal  Requirement.  No shares of Common Stock or Preferred Stock are held
by the Company in its treasury as of the date of this  Agreement.  Except as set
forth on Schedule 10.2 of the  Disclosure  Schedule,  the Company is not a party
to, and has no Knowledge of, any voting  agreement,  irrevocable  proxy or other
Arrangement  with respect to the voting of the Shares.  Assuming  that the Buyer
(i) owns 100% of the capital  stock of Merger Sub,  free and clear of all Liens,
and (ii) Merger Sub has issued no options,  warrants or other  Arrangements  for
the purchase of its capital stock,  each as  immediately  prior to the Effective
Time, at the Effective Time upon giving effect to the Merger, the Buyer will own
100% of the  outstanding  capital stock of the Surviving  Corporation,  free and
clear of all Liens, and no Options will be outstanding.

      10.3  Subsidiaries.  The  Company  owns all of the issued and  outstanding
capital  stock  of  the  Company  Subsidiary,   and  no  Person  has  the  right
(contractual  or other) to acquire any capital stock of the Company  Subsidiary.
The Company Subsidiary is a corporation duly organized,  validly existing and in
good  standing  under  the  laws of the  State of South  Carolina.  The  Company
Subsidiary  is duly  qualified to transact  business and is in good  standing in
each  jurisdiction  in which the failure to so qualify  would have a  Materially
Adverse effect on its business or properties. Except for the Company Subsidiary,
the Company  has no  Subsidiaries.  Except as set forth on Schedule  10.3 of the
Disclosure  Schedule,  the Company is not a  participant  in any joint  venture,
partnership,  or similar arrangement,  nor has the Company entered into, or have
the  present  intent to enter  into,  any  Arrangement  to  acquire  any  equity
securities or other  security of any Person or any direct or indirect  equity or
ownership interest in any other business.

                                       24
<PAGE>

      10.4  Authorization.  All corporate  action on the part of the Company and
its  officers,  directors  and  shareholders  necessary  for the  authorization,
execution  and  delivery of this  Agreement  and the Related  Documents  and the
performance of all obligations of the Company  hereunder and thereunder has been
taken or will be taken  prior to the  Closing.  The  Board of  Directors  of the
Company,  at a meeting  duly called and held,  or pursuant to a written  consent
duly adopted  resolutions (a)  determining  that the terms of the Merger and the
other  Transaction  are fair to, and in the best  interests  of,  the  Company's
shareholders;  (b)  approving  this  Agreement;  and (c)  recommending  that the
Company's  shareholders approve and adopt this Agreement and approve the Merger.
This  Agreement  constitutes  the valid and legally  binding  obligations of the
Company,  enforceable  in  accordance  with its terms,  except (i) as limited by
applicable bankruptcy, insolvency, reorganization,  moratorium and other laws of
general application  affecting  enforcement of creditors' rights generally;  and
(ii) as limited by laws relating to the  availability  of specific  performance,
injunctive  relief or other equitable  remedies.  No state takeover  statutes or
similar  statute or regulation  applies or purports to apply to the Company with
respect to this Agreement,  the Merger or any other Transactions.  The only vote
of holders of any class or series of Company  capital stock necessary to approve
and  adopt  this  Agreement  and  approve  and  consummate  the  Merger  is  the
affirmative  approval  and  adoption  thereof  by the  holders  of a  two-thirds
majority of the Shares.

      10.5 Governmental Consents. No consent,  approval,  order or authorization
of, or registration, qualification, designation, declaration or filing with, any
Governmental Authority on the part of the Company is required in connection with
the  consummation of the  Transactions,  except for such other filings  required
pursuant  to  applicable  federal and state  securities  laws and blue sky laws,
which filings will be effected within the required statutory period.

      10.6    Legal Proceedings; Order.

            (a) Except as set forth in Schedule 10.6 of the Disclosure Schedule,
      there is no pending  Proceeding  (i) that has been commenced by or against
      the Company or its Subsidiaries or that otherwise related to or may affect
      the business of, or any of the assets owned or used by, the Company or its
      Subsidiaries, except for civil litigation by private litigants praying for
      damages  that  do  not  exceed  $10,000  in any  case  or  $50,000  in the
      aggregate;  or (ii)  that  challenges,  or that  may have  the  effect  of
      preventing,  delaying,  making illegal, or otherwise interfering with, any
      of  the  Transactions.  Except  as  set  forth  in  Schedule  10.6  of the
      Disclosure  Schedule,  to the Knowledge of the Company, no such Proceeding
      has been threatened in a writing delivered to the Company.

            (b) Except as set forth in Schedule 10.6 of the Disclosure Schedule:

                  (i)   there  is  no  Order  to  which  the   Company   or  its
            Subsidiaries,  or any of the assets  owned or used by the Company or
            its Subsidiaries, is subject;

                  (ii) to the Knowledge of the Company, no event has occurred or
            circumstance  exists  that  may  constitute  or  result  in (with or
            without notice or lapse of time) a violation of or failure to comply
            with any term or  requirement  of any Order to which the  Company or
            its Subsidiaries,  or any of the assets owned or used by the Company
            or its Subsidiaries, is subject; and

                                       25
<PAGE>

                  (iii) the Company and its Subsidiaries  have not received,  at
            any  time,  any  notice  or  other  communication  (whether  oral or
            written)  from  any  Governmental  Authority  or  any  other  Person
            regarding any actual, alleged,  possible, or potential violation of,
            or failure to comply with,  any term or  requirement of any Order to
            which the Company or its Subsidiaries, or any of the assets owned or
            used by the Company or its Subsidiaries, is or has been subject.

      10.7    Intellectual Property.

            (a) Intellectual  Property Assets. The term "Intellectual  Property"
      includes the following:

                  (i) all United  States,  international  and  foreign  patents,
            patent applications and statutory invention registrations,  together
            with all reissues, divisions, continuations,  continuations-in-part,
            extensions and reexaminations  thereof,  all inventions therein, all
            rights therein provided by international treaties or conventions and
            all  improvements   thereto,  and  all  other  rights  of  any  kind
            whatsoever of the Company or its Subsidiaries accruing thereunder or
            pertaining thereto (collectively, the "Patents");

                  (ii) all trademarks  (including,  without limitation,  service
            marks),  certification marks,  collective marks, trade dress, logos,
            domain names, product  configurations,  trade names, business names,
            corporate  names  and  other  source  identifiers,  whether  or  not
            registered,  whether  currently  in use or not,  including,  without
            limitation, all common law rights and registrations and applications
            for registration thereof, and all other marks registered in the U.S.
            Patent and Trademark  Office or in any office or agency of any State
            or Territory of the United  States or any foreign  country,  and all
            rights therein  provided by  international  treaties or conventions,
            all  reissues,  extensions  and  renewals  of any of the  foregoing,
            together in each case with the  goodwill of the  business  connected
            therewith  and  symbolized  thereby,  and all  rights  corresponding
            thereto  throughout  the  world  and all  other  rights  of any kind
            whatsoever of the Company or its Subsidiaries accruing thereunder or
            pertaining thereto (collectively, the "Trademarks");

                  (iii)  all  copyrights,   copyright  applications,   copyright
            registrations  and  like  protections  in each  work of  authorship,
            whether  statutory or common law, whether  published or unpublished,
            any renewals or extensions  thereof,  all  copyrights of works based
            on,  incorporated  in, derived from, or relating to works covered by
            such  copyrights,  together  with all rights  corresponding  thereto
            throughout the world and all other rights of any kind  whatsoever of
            the Company or its  Subsidiaries  accruing  thereunder or pertaining
            thereto (collectively, the "Copyrights");

                                       26
<PAGE>

                  (iv) all confidential and proprietary information,  including,
            without  limitation,  know-how,  trade  secrets,  manufacturing  and
            production  processes  and  techniques,   inventions,  research  and
            development  information,  technical data, financial,  marketing and
            business data, pricing and cost information,  business and marketing
            plans and customer and supplier lists and information of the Company
            or its Subsidiaries (collectively, the "Trade Secrets");

                  (v)  all of  the  Company's  and  its  Subsidiaries'  computer
            software  programs and  databases  (including,  without  limitation,
            source  code,  object  code and all  related  applications  and data
            files),  firmware, and documentation and materials relating thereto,
            and all Software Rights with respect to the foregoing, together with
            any  and  all  options,   warranties,   service  contracts,  program
            services,  test  rights,  maintenance  rights,  improvement  rights,
            renewal   rights  and   indemnifications   and  any   substitutions,
            replacements, additions or model conversions of any of the foregoing
            (collectively, the "Computer Software");

                  (vi)  all  license  agreements,  permits,  authorizations  and
            franchises of the Company and its Subsidiaries, whether with respect
            to the  Patents,  Trademarks,  Copyrights,  URLs,  Trade  Secrets or
            Computer  Software,  or with  respect  to the  patents,  trademarks,
            copyrights,  trade secrets,  computer  software or other proprietary
            right of any  other  Person,  and all  income,  royalties  and other
            payments now or hereafter due and/or  payable with respect  thereto,
            subject,  in each  case,  to the terms of such  license  agreements,
            permits,   authorizations   and   franchises   (collectively,    the
            "Licenses"); and

                  (vii)  all  URLs,  domain  names or other  names or  addresses
            relating  to the  Company's  or its  Subsidiaries'  operations  with
            respect   to   the   Internet   (including,    without   limitation,
            registrations and applications for registration thereof with Network
            Solutions  or other  applicable  private or public  URL  registries,
            domestic and foreign),  together with all intellectual  property and
            all  other  rights  of any kind  whatsoever  of the  Company  or its
            Subsidiaries  accruing thereunder,  pertaining thereto or associated
            therewith,   including,   without  limitation,   all  registrations,
            applications,  renewals,  reissues,  extensions,  links  (including,
            without limitation,  meta tags), and connections (collectively,  the
            "URLs")

            (b) Agreements.  Schedule 10.7 of the Disclosure Schedule contains a
      list of all  Arrangements  relating to Intellectual  Property to which the
      Company  or its  Subsidiaries  is a party or by which the  Company  or its
      Subsidiaries  is bound,  except for any  license  implied by the sale of a
      product and perpetual,  paid-up licenses for commonly  available  software
      programs  with a value of less than Ten Thousand  Dollars  (U.S.  $10,000)
      under which the Company or its Subsidiaries is the licensee.  There are no
      outstanding  and, to the Company's  Knowledge,  no threatened  disputes or
      disagreements with respect to any such  Arrangements.  Except as disclosed
      in Schedule 10.7 of the Disclosure  Schedule,  neither the Company nor its
      Subsidiaries,  nor, to the Knowledge of the Company, any third party is in
      breach  of any  Arrangement  relating  to the  use by the  Company  or its
      Subsidiaries  of any  Intellectual  Property owned by other  Persons.  The
      Company and its Subsidiaries have not granted nor are obligated to grant a
      license,  assignment  or other  right  with  respect  to any  Intellectual
      Property, except as disclosed in Schedule 10.7 to the Disclosure Schedule.

                                       27
<PAGE>

            (c) Know-How.  The  Intellectual  Property  includes all such assets
      which are reasonably  necessary for the operation of the Company's and its
      Subsidiaries'  businesses  as it is currently  conducted  and as currently
      proposed to be conducted by the Company.  The Company or its  Subsidiaries
      is the owner of all right,  title, and interest in and to all Intellectual
      Property,  free and  clear  of all  Liens,  and,  except  as set  forth on
      Schedule 10.7 of the Disclosure Schedule,  has the right to use all of the
      Intellectual  Property.  Except  as set  forth  in  Schedule  10.7  of the
      Disclosure  Schedule,  no Arrangement or understanding  exists between the
      Company or its  Subsidiaries  and any third party  which  would  impede or
      prevent the continued use of such right, title and interest of the Company
      or its Subsidiaries in and to the Intellectual  Property as the Company or
      its  Subsidiaries  had prior to the Closing and used in the conduct of its
      business, or would require the payment of any fees to any third party.

            (d) Patents, Trademarks, Copyrights and URLs.

                  (i) Schedule 10.7 of the Disclosure  Schedule  contains a list
            of all of the Patents,  Trademarks,  Copyrights and URLs.  Except as
            set forth on Schedule 10.7 of the Disclosure  Schedule,  the Company
            or its  Subsidiaries is the owner of all right,  title, and interest
            in and to each of the Patents,  the  Trademarks,  the Copyrights and
            the URLs, free and clear of all Liens.

                  (ii)  Except as set forth on Schedule  10.7 of the  Disclosure
            Schedule,  to the  Knowledge of the Company,  no Patent,  Trademark,
            Copyright or URL is infringed or has been  challenged  or threatened
            in any way.  Except as set forth on Schedule 10.7 of the  Disclosure
            Schedule,  none of the  Intellectual  Property  infringes or, to the
            Company's Knowledge, is alleged to infringe, any patent,  trademark,
            service mark, copyright or URL of any third party.

            (e)   Trade Secrets.

                  (i) The Company and its Subsidiaries  have taken  commercially
            reasonable  precautions to protect the secrecy,  confidentiality and
            value of the Trade Secrets.

                  (ii) The Company and its Subsidiaries  have good title and the
            right (but not  necessarily  the  exclusive  right) to use the Trade
            Secrets. To the Company's Knowledge,  the Trade Secrets are not part
            of the  public  knowledge  or  literature,  and have not been  used,
            divulged,  or  appropriated  either  for the  benefit  of any Person
            (other than the Company and its Subsidiaries) or to the detriment of
            the Company or its  Subsidiaries.  To the  Company's  Knowledge,  no
            Trade Secret is subject to any adverse claim or has been  challenged
            or threatened in any way.

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<PAGE>

            (f) Computer  Software.  Schedule  10.7 of the  Disclosure  Schedule
      contains  a  list  of  all  the  Computer  Software.  The  Company  or its
      Subsidiaries is the owner of all right,  title, and interest in and to the
      Computer Software,  free and clear of all Liens, and the Computer Software
      may be used by the Company or its  Subsidiaries  following  the Closing in
      the same manner as such were used prior to the Closing without the payment
      of additional fees.

            (g)   Licenses.

                  (i) Schedule 10.7 of the Disclosure  Schedule  contains a list
            of all Licenses.

                  (ii) All Licenses are  rightfully  used and authorized for use
            by the Company or its Subsidiaries  pursuant to a valid Arrangements
            with respect to such Licenses.  The Company or its Subsidiaries have
            all rights with  respect to Licenses  reasonably  necessary to carry
            out the Company's or its Subsidiaries' activities, including without
            limitation,  if  necessary to carry out such  activities,  rights to
            make,  use,  exclude others from using,  reproduce,  modify,  adapt,
            create  derivative works based on, translate,  distribute  (directly
            and  indirectly),   transmit,   display  and  perform  publicly  all
            third-party   Intellectual  Property  Rights  making  up  each  such
            License.

                  (iii) The Company and its Subsidiaries is not, nor as a result
            of the execution or delivery of this  Agreement,  or  performance of
            the  Company's  obligations  hereunder,  will  the  Company  or  its
            Subsidiaries be, in violation of any License.

      10.8 Compliance with Other  Instruments.  The Company and its Subsidiaries
are not in violation of any  provision of (a) its Articles of  Incorporation  or
Bylaws, each as amended to date; or, except as set forth on Schedule 10.8 of the
Disclosure Schedule, (b) any material Arrangement,  instrument, judgment, order,
writ,  decree or  contract  to which the  Company or its  Subsidiaries  or their
assets is subject;  or, except as set forth on Schedule  10.8 of the  Disclosure
Schedule,  (c) to the Knowledge of the Company, any statute,  rule or regulation
to which the Company or its  Subsidiaries or their assets is subject.  Except as
set forth on Schedule 10.8 of the Disclosure Schedule,  the execution,  delivery
and performance of this Agreement and the consummation of the Transactions  will
not result in any such violation, or be in conflict with or constitute,  with or
without  the  passage of time and giving of notice,  either a default  under any
such  provision or an event that results in the  acceleration  of any payment or
other  obligation of the Company or its  Subsidiaries as a result of a change of
control of the Company or otherwise, the creation of any Lien upon any assets of
the  Company or its  Subsidiaries  or the  suspension,  revocation,  impairment,
forfeiture or nonrenewal of any material Governmental  Authorization  applicable
to the Company or its Subsidiaries, their business or operations or any of their
assets or properties.

                                       29
<PAGE>

      10.9 Related-Party  Transactions.  Except as set forth in Schedule 10.9 of
the Disclosure  Schedule,  the Company and its Subsidiaries  have not purchased,
acquired or leased any property or services from, or sold, transferred or leased
any property or services to, or loaned or advanced any money to, or borrowed any
money from,  or entered into or been subject to any  management,  consulting  or
similar agreement with,  engaged in any other significant  transaction,  or is a
party to any  Arrangement  with  any  Related  Person.  Except  as set  forth in
Schedule 10.9 of the Disclosure  Schedule,  no Related Person is indebted to the
Company or its Subsidiaries, nor is the Company or its Subsidiaries indebted (or
committed  to make loans or extend or guarantee  credit) to any Related  Person.
Except  as set  forth  on  Schedule  10.9  of the  Disclosure  Schedule,  to the
Company's  Knowledge,  no Related  Person has any direct or  indirect  ownership
interest in any firm or corporation  with which the Company or its  Subsidiaries
is  affiliated  or with  which the  Company or its  Subsidiaries  has a business
relationship,  or any firm or corporation  that competes with the Company or its
Subsidiaries,  except that  Related  Persons,  may own stock in publicly  traded
companies that may compete with the Company or its Subsidiaries.

      10.10  Permits.  Except as set forth on Schedule  10.10 of the  Disclosure
Schedule, the Company and its Subsidiaries have all Governmental  Authorizations
necessary for and material to the conduct of their business. Except as set forth
on Schedule 10.10 of the Disclosure  Schedule,  the Company and its Subsidiaries
are  not  in  default  in any  material  respect  under  any  such  Governmental
Authorization.

      10.11   Environmental Laws.

            (a) The Company and its Subsidiaries have not received notice of any
      investigation  or  inquiry  by  any   Governmental   Authority  under  any
      Environmental  Laws  (as  defined  below)  relating  to the  ownership  or
      operation  of the assets or business  of the Company or its  Subsidiaries.
      The  Company  and its  Subsidiaries  have not  disposed  of any  Hazardous
      Material (as defined  below) on any of its Facilities  and,  except as set
      forth on Schedule  10.11 of the Disclosure  Schedule,  to the Knowledge of
      the Company,  no  condition  exists in or on any of the  Facilities  which
      would subject the Company or its Subsidiaries to any remedial  obligations
      under any Environmental Laws.

            (b)  Except  as set  forth  on  Schedule  10.11  of  the  Disclosure
      Schedule,  to the Knowledge of the Company,  no prior owner or operator of
      the  Facilities  has caused or allowed  the  generation,  use,  treatment,
      storage or disposal of Hazardous  Materials at any Facility owned,  leased
      or operated by the Company or its Subsidiaries, or used in connection with
      its assets except in accordance with all  Environmental  Laws or except to
      the extent the same would not result in a Materially Adverse effect on the
      ownership  or  operation  of the assets or  business of the Company or its
      Subsidiaries.

            (c) The Company and its  Subsidiaries  have not received  inquiry or
      notice nor does the Company or its Subsidiaries have any reason to suspect
      or  believe  that it will  receive  inquiry  or  notice  of any  actual or
      potential   Proceedings   or  losses  related  to  or  arising  under  any
      Environmental  Law and related to the ownership or operation of the assets
      or business of the Company or its Subsidiaries.

                                       30
<PAGE>

            (d) For purposes of this Agreement,  "Environmental  Laws" means any
      and all Laws  pertaining to (x) the control of any potential  pollutant or
      protection of the air, water or land,  (y) solid,  gaseous or liquid waste
      generation,  handling, treatment, storage, disposal or transportation,  or
      (z)  exposure  to  hazardous,  toxic or  other  substances  alleged  to be
      harmful.  For purposes of this Agreement,  the term  "Hazardous  Material"
      means  (i) any  substance  which  is  listed  or  defined  as a  hazardous
      substance,   hazardous  constituent,   or  solid  waste  pursuant  to  any
      Environmental  Laws  and  (ii)  petroleum  (including  crude  oil  and any
      fraction thereof), natural gas and natural gas liquids.

      10.12  Title  to  Personal  Property  and  Assets.  The  Company  and  its
Subsidiaries  own or have a valid right to use all assets  which are  reasonably
necessary for the operation of the Company's and its  Subsidiaries'  businesses,
respectively,  as they are currently conducted. The personal property and assets
the  Company  and  its  Subsidiaries  own  are  owned  by the  Company  and  its
Subsidiaries, respectively, free and clear of all Liens and loans, except (i) as
reflected in Schedule 10.12 of the Disclosure Schedule; (ii) for statutory liens
for the  payment of current  Taxes  that are not yet  delinquent;  and (iii) for
Liens that arise in the Ordinary  Course of Business and minor defects in title,
none of which, individually or in the aggregate, materially impair the Company's
or its Subsidiaries'  ownership or use of such personal property or assets. With
respect to the  personal  property  and assets it leases,  the  Company  and its
Subsidiaries  are in material  compliance with such leases and, to the Company's
Knowledge, hold a valid leasehold interest free of any Liens, subject to clauses
(i) through (iii) above.  Schedule 10.12 of the Disclosure  Schedule  contains a
list of all of the equipment leases of the Company and its Subsidiaries.

      10.13   Employees; Labor Relations; Compliance.

            (a) Employees.  Schedule 10.13 of the Disclosure Schedule contains a
      list of the following  information for each current management employee of
      the Company and its Subsidiaries:  name; job title;  current  compensation
      paid or payable  and any  change in  compensation  since  January 1, 2004;
      vacation  accrued;  and  service  credited  for  purposes  of vesting  and
      eligibility to participate under the Company's Plans.

            (b) Labor  Relations;  Compliance.  Except as set forth on  Schedule
      10.13  of the  Disclosure  Schedule,  there  has not  been,  there  is not
      presently  pending or existing,  and to the Knowledge of the Company there
      is not threatened,  (a) any employee grievance process; (b) any Proceeding
      against or  affecting  the  Company or its  Subsidiaries  relating  to the
      alleged violation of any Legal  Requirement  pertaining to labor relations
      or  employment  matters,  including  any charge or  complaint  filed by an
      employee  or union with the  National  Labor  Relations  Board,  the Equal
      Employment  Opportunity   Commission,   or  any  comparable   Governmental
      Authority,  organizational  activity, or other labor or employment dispute
      against or affecting the Company or its Subsidiaries or their  Facilities;
      or (c) any application for certification of a collective bargaining agent.
      The Company and its  Subsidiaries  have complied in all material  respects
      with all Legal  Requirements  relating  to  employment,  equal  employment
      opportunity,  nondiscrimination,   immigration,  wages,  hours,  benefits,
      collective  bargaining,  the payment of social security and similar Taxes,
      occupational  safety and health,  and plant  closing.  The Company and its
      Subsidiaries are not liable for the payment of any compensation,  damages,
      Taxes, fines, penalties, or other amounts, however designated, for failure
      to comply with any of the foregoing Legal Requirements. The Company and or
      its Subsidiaries have timely paid all overtime wages to their employees as
      required by law.

                                       31
<PAGE>

      10.14 Financial  Statements.  The Company has previously  delivered to the
Buyer  the  audited  balance  sheet  of the  Company  and  the  related  audited
statements of income,  changes in  shareholders'  equity,  and cash flow for the
Company for the year(s)  ended  December  31, 2003 and December 31, 2002 and the
unaudited balance sheet of the Company and the related  unaudited  statements of
income,  changes in shareholders'  equity, and cash flow for the Company for the
period  ended  December  31,  2004,  including  in each case the  notes  thereto
(collectively,  the "Financial Statements"). The Financial Statements (i) fairly
present  the  financial  conditions  and  results  of  operations,   changes  in
shareholders'  equity and cash flow of the Company as at the respective dates of
and for the periods  referred to in the Financial  Statements,  subject,  in the
case of the December 31, 2004 interim  financial  reports to,  normal  recurring
year-end  adjustments  (the effect of which will not, as  individually or in the
aggregate,  be  Materially  Adverse) of the Company as at the  respective  dates
indicated,  and (ii) have been  prepared in  accordance  with GAAP,  through the
periods  involved.  The unaudited balance sheet of the Company as of January 31,
2005 to be delivered to the Buyer  pursuant to Section 12.10 will fairly present
the  financial  condition  of the  Company  as of January  31,  2005 and will be
prepared in accordance with GAAP, subject to normal year-end adjustments and the
absence of footnotes

      10.15  Absence  of  Certain  Changes.  Except  as  otherwise  set forth on
Schedule 10.15 of the Disclosure  Schedule,  since December 31, 2003,  there has
not been (i) any  declaration,  set aside or payment of dividends by the Company
or its  Subsidiaries,  any transfer of assets or any  distribution or payment in
respect of shares of capital  stock or other  securities  of the  Company or its
Subsidiaries  of any kind  whatsoever by the Company or its  Subsidiaries to its
shareholders;  (ii) change in the Company's or its  Subsidiaries'  authorized or
issued capital stock;  grant of any stock option or right to purchase  shares of
capital  stock of the Company or its  Subsidiaries;  or issuance of any security
convertible into such capital stock; grant of any registration rights; purchase,
redemption,  retirement, or other acquisition by the Company or its Subsidiaries
for any shares of any such capital stock;  (iii) any  incurrence,  assumption or
guarantee by the Company or its  Subsidiaries  of any debt for borrowed money or
any debt or  liability,  outside of the Ordinary  Course of  Business;  (iv) any
change in any  method of  accounting  or  accounting  practice  or policy by the
Company or its Subsidiaries,  or in any manner of keeping the books, accounts or
records  of  the  Company  or  its  Subsidiaries,  or  any  reclassification  of
non-current  assets  to  current  assets,  or any  reclassification  of  current
liabilities to non-current liabilities;  (v) any damage,  destruction or loss of
any  assets or  property  of the  Company  or its  Subsidiaries,  whether or not
covered by insurance  Materially  Adversely  affecting the  properties,  assets,
business,  financial  condition or prospects of the Company and its Subsidiaries
taken  as a whole;  (vi)  any sale or  transfer  of a  material  portion  of the
Company's or its Subsidiaries' assets outside of the Ordinary Course of Business
or any  cancellation  of a material  claim of or debt for borrowed money owed to
the Company or its  Subsidiaries  outside of the  Ordinary  Course of  Business;
(vii) any creation,  subjection or assumption of any Lien on any asset of either
to Lien of any assets,  except Liens for taxes not yet due;  (viii) any material
amendment,  modification  or termination of any Material  Contract except in the
Ordinary Course of Business; (ix) amendment to the Articles of Incorporation and

                                       32
<PAGE>

the Bylaws of the Company or its  Subsidiaries;  (x) any payment or increase in,
or  commitment  to increase by the Company or its  Subsidiaries  of any bonuses,
salaries or other compensation or benefit to any officer, shareholder,  director
or  (except  in  the  Ordinary  Course  of  Business)  consultants,  independent
contractor or employee or entry into any  employment  severance,  or grant of or
agreement to pay any severance or termination  pay to any officer,  shareholder,
director  or (except in the  Ordinary  Course of  Business)  to any  consultant,
independent  contractor  or  employee of the  Company or its  Subsidiaries,  any
entering  into  of  any  employment,  deferred  compensation  or  other  similar
Arrangement  by the Company or its  Subsidiaries  (or any  amendment to any such
existing  agreement)  with  any  officer,  director  or any  employee;  (xi) any
adoption of, or increase in benefits payable under,  any profit sharing,  bonus,
deferred  compensation,   savings,  insurance,  pension,  retirement,  or  other
employee  benefit  plan  for  or  with  any  employees  of  the  Company  or its
Subsidiaries;  as any adoption,  or payment under,  any severance or termination
pay policy,  employment agreement or collective bargaining agreement;  (xii) any
incurrence  of,   assumption  of,  or  taking  any  property   subject  to,  any
indebtedness  (excluding  trade payables and other  liabilities  incurred in the
Ordinary Course of Business); or (xiii) entry into the termination of or receipt
of notice of termination of any Material Contract; (xiv) any agreement,  whether
oral or written,  by the Company or its Subsidiaries to do any of the foregoing;
(xv) any other event or condition of any character which is Materially Adverse.

      10.16   Owned Real  Property.  The Company and its  Subsidiaries  do not
own any real property.

      10.17 Leased Real  Property.  Schedule  10.17 of the  Disclosure  Schedule
correctly   identifies  all  real  property   leased  by  the  Company  and  its
Subsidiaries  (collectively,  the "Leased Real  Property").  The Company and its
Subsidiaries  has the right to use its Leased Real  Property,  free and clear of
any and all Liens,  except for Permitted  Liens.  True and correct copies of the
documents  under which the Leased Property is leased  (collectively,  the "Lease
Documents") have been delivered to Buyer. The Lease Documents are unmodified and
in full force and effect,  and there are no other  agreements,  written or oral,
between  the  Company or its  Subsidiaries  and any third  parties  claiming  an
interest  in the  Company's  or its  Subsidiaries'  interest  in the Leased Real
Property or otherwise  relating to the  Company's or its  Subsidiaries'  use and
occupancy thereof. The Company and its Subsidiaries are not in default under the
Lease  Documents,  and no defaults  (whether or not  subsequently  cured) by the
Company or its  Subsidiaries  have been  alleged  thereunder.  To the  Company's
Knowledge,  each landlord named in any of the Lease  Documents is not in default
thereunder, and no defaults (whether or not subsequently cured) by such landlord
have been alleged thereunder.
      10.18   Material Contracts; Company Indebtedness.

            (a) Material Contracts. The documents reflected on Schedule 10.18(a)
      of the  Disclosure  Schedule is a list of all Material  Contracts  entered
      into by the Company or its Subsidiaries,  a true and complete copy of each
      of which has been  delivered  to the Buyer by the  Company.  Except as set
      forth in  Schedule  10.18(a) of the  Disclosure  Schedule,  each  Material
      Contract  is in full  force and  effect  and is valid and  enforceable  in
      accordance  with its terms,  (i) the Company and its  Subsidiaries  are in

                                       33
<PAGE>

      full  compliance  with  all  applicable  terms  and  requirements  of each
      Material  Contracts,  (ii) to the  Knowledge  of the  Company,  each other
      Person that has or had any  obligation  or  liability  under any  Material
      Contract is in full compliance with all applicable  terms and requirements
      of such Material Contract, and (iii) the consummation of this Agreement or
      the  Transactions  by the Company will not  contravene,  conflict with, or
      result  in  a  violation  or  breach  of,  or  give  the  Company  or  its
      Subsidiaries  or other  Person the right to declare a default or  exercise
      any remedy under,  or to accelerate the maturity or performance  of, or to
      cancel, terminate, or modify, from any other Person at any time any notice
      or other  communications  (whether oral or written)  regarding any actual,
      alleged possible,  or potential  violation or breach of, or default under,
      any Material Contract.

            (b) Company  Indebtedness.  Schedule 10.18(b)  describes all Company
      Indebtedness,  including  the identity of the Persons to whom such Company
      Indebtedness is owed and the principal amount of such Company Indebtedness
      as of the date hereof.

      10.19 Tax Matters. Except as set forth in Schedule 10.19 of the Disclosure
Schedule,  the Company and its  Subsidiaries  have timely  filed all Tax Returns
required  to have been filed by them,  and have paid or will have paid,  or will
have accrued for purposes of calculating the Working  Capital Amount,  all Taxes
due to any taxing  authority as of the with respect to all taxing periods ending
on or prior to the  Effective  Time,  or otherwise  attributable  to all periods
ending prior to the date hereof;  and all such Tax Returns are true, correct and
complete in all material  respects.  The Company and its  Subsidiaries  have not
received  notice that any taxing  authority has asserted  against the Company or
its  Subsidiaries  any  deficiency  in Taxes or claim  for  additional  Taxes in
connection  with  any tax  period.  There is no  pending  or,  to the  Company's
Knowledge, threatened action, audit, Proceeding or investigation with respect to
the  assessment or collection of Taxes or a claim for refund made by the Company
or its Subsidiaries  with respect to Taxes previously paid. All amounts that are
required to be collected or withheld by the Company or its Subsidiaries, or with
respect to Taxes of the Company or its Subsidiaries, have been duly collected or
withheld,  and all such  amounts  that are required to be remitted to any taxing
authority  have been duly remitted.  As of the date hereof,  the Company is not,
and as not been during the five (5) year  period  ending on the date  hereof,  a
"United States real property holding corporation" (within the meaning of Section
897 of the Code).

      10.20  Insurance.  The  properties  and  assets  of the  Company  and  its
Subsidiaries  which are of an  insurable  character  are insured by  independent
carriers  against loss or damage by fire,  casualty,  errors and omissions,  and
other  risks,  and  the  Company  and  its   Subsidiaries   have  liability  and
occupational  hazards insurance with independent  carriers,  in each case to the
extent and in the manner  customary for companies  engaged in a similar business
or owning  similar  assets.  All  insurance  policies held by the Company or its
Subsidiaries (collectively, the "Policies") are (and will continue following the
consummation of the  Transactions) in full force and effect and are of the types
and in  amounts  providing  protection  for  the  Company  or  its  Subsidiaries
consistent with sound business practices and prudent risk management  applicable
to businesses of the size and nature of the Company or its  Subsidiaries and are
sufficient for compliance with all Legal  Requirements and Arrangements to which
the Company or its  Subsidiaries is a party or by which it is bound. The Company
and its Subsidiaries  have not received any notice of cancellation in respect of
insurance coverage under the Policies.  The Company and or its Subsidiaries have
paid all premiums due and have  otherwise  performed  all of their  obligations,
under each of the  Policies,  and the  Company and its  Subsidiaries  have given
notice to the  insurers of all claims  insured  thereunder.  The Company and its
Subsidiaries have not entered into any self-insurance Arrangements. There are no
pending or, to the Knowledge of any of the Company,  threatened  terminations or
material  premium  increases with respect to any of the Policies and the Company
and its Subsidiaries are in compliance with all conditions contained therein.

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<PAGE>

      10.21  Employee  Benefit  Plans  and  Agreements.  Schedule  10.21  of the
Disclosure Schedule sets forth a true and complete list of each Employee Benefit
Plan (as hereinafter  defined) of the Company and its Subsidiaries.  The Company
and its Subsidiaries do not have nor have maintained nor contributed (nor had an
obligation to contribute) to within the six (6) years immediately  preceding the
date of this Agreement (i) any plan which is subject to Title IV of ERISA,  (ii)
any multi-employer  plan, as defined in Section 3(37) of ERISA or Section 412 of
the Code. For purposes of this Agreement,  "Employee  Benefit Plan" means any of
the following,  whether  provided  internally or outsourced:  personnel  policy,
stock option plan, profit sharing plan,  retirement,  stock purchase plan, life,
medical,  vision,  health,  disability or accident plan,  bonus plan,  incentive
award plan, severance pay plan or policy,  deferred compensation plan or policy,
executive  compensation  or  supplemental  income  plan or policy,  or any other
employee  benefit  plan,   agreement,   practice,   program,   policy  or  other
Arrangement,  to the extent  that the  foregoing  generally  apply to current or
former  employees  or groups of  employees  of the Company or its  Subsidiaries,
whether such plan is mandated,  required or otherwise provided by the Company or
its Subsidiaries in accordance with Law, Arrangements with any union, syndicate,
collective  bargaining agreement or otherwise.  The Company and its Subsidiaries
have performed all material obligations,  whether arising by operation of law or
by contract,  required to be performed by them in connection with their Employee
Benefit  Plans,  and there have been no material  defaults or  violations by any
other  party to such  Employee  Benefit  Plans  for  which  the  Company  or its
Subsidiaries  could be liable.  All  reports  and  disclosures  relating to such
Employee   Benefit  Plans  required  to  be  filed  with  or  furnished  to  any
Governmental  Authority or any Employee  Benefit Plan participant or beneficiary
have been filed or  furnished  in  accordance  with  applicable  law in a timely
manner  for  which  the  Company  or its  Subsidiaries  could  have  a  material
liability, and each such Employee Benefit Plan has been administered in material
compliance  with its  governing  documents.  Each  Employee  Benefit Plan may be
terminated by the Company or its Subsidiaries  without further  liability (other
than costs,  filing fees, and expenses  required to receive an IRS determination
letter to make distribution  from such terminated  Employee Benefit Plan) to the
Company or its Subsidiaries.  There are no actions,  suits or claims pending or,
to the  Knowledge of the Company,  threatened  against or with respect to any of
the Employee  Benefit Plans of the Company or its  Subsidiaries,  other than for
routine  claims  for  benefits.  All  contributions  required  to be made to the
Employee Benefit Plans of the Company or its Subsidiaries  pursuant to its terms
and provisions  have been timely made.  Except as disclosed on Schedule 10.21 of
the  Disclosure  Schedule,  the execution and delivery of this Agreement and the
consummation  of the  Transactions  will not, due solely to a change in control,
ownership or similar  concept,  (a) require the Company or its  Subsidiaries  to
make a  larger  contribution  to,  or pay  greater  benefits  under,  any of its
Employee Benefit Plans than it otherwise would or (b) create or give rise to any
additional vested rights or service credits under any Employee Benefit Plan.

                                       35
<PAGE>

      No  "prohibited  transaction"  within the  meaning of Section 406 of ERISA
and/or  Section 4975 of the Code exists  which could  subject the Company or its
Subsidiaries  to a material  liability  or civil  penalty  assessed  pursuant to
Section  502(i) of ERISA or a Tax imposed by Section  4975 of the Code.  Neither
the Company nor its Subsidiaries  nor any  administrator or agent of the Company
or its Subsidiaries, has engaged in any transaction or acted or failed to act in
a manner  which is  likely to  subject  the  Company  or its  Subsidiaries  to a
material  liability  for a breach of  fiduciary or other duty under ERISA or any
other applicable Law. The Transactions  will not be a, or cause any,  prohibited
transaction  within the meaning of Sections  406 and 4975 of ERISA and the Code,
respectively.  Except as disclosed in Schedule 10.21 of the Disclosure Schedule,
the Company and its Subsidiaries  have complied with the  continuation  coverage
provisions of the  Consolidated  Omnibus Budget  Reconciliation  Act of 1985, as
amended,  with respect to all current  employees and former  employees and other
"qualified  beneficiaries"  (as defined in Code  Section  4980B(g)(l)  and ERISA
Section  607(3)) in all material  respects.  No Employee  Benefit Plan  provides
medical  benefits  beyond  termination  of employment  or retirement  other than
contribution  coverage  mandated by Law. The Company and its  Subsidiaries  have
maintained  workers'  compensation  coverage as required by applicable state law
through purchase of insurance and not by self-insurance or otherwise,  except as
disclosed in Schedule 10.21 to the Disclosure Schedule prior to the execution of
this  Agreement.  Except as required by Law and except as  disclosed on Schedule
10.21 of the Disclosure Schedule,  the consummation of the Transactions will not
accelerate  the time of vesting or the time of payment,  or increase the amount,
of compensation due to any employee,  officer, former employee or former officer
of the Company or its  Subsidiaries.  There are no  Arrangements  providing  for
payments  that could  subject any Person to liability for Tax under Section 4999
of the Code. The Company and its  Subsidiaries  have  maintained  records of the
names of all persons  covered  under each group health plan it maintains and the
duration of each such person's  coverage.  The Company and its Subsidiaries have
complied in all material respects with all of the group health plan requirements
enacted by the Health Insurance  Portability and Accountability Act of 1996, and
the regulations related thereto and issued thereunder.

      10.22 Brokers. Except for Libra Securities, LLC ("Libra Securities"),  the
Company has not  employed or  authorized  anyone to  represent it as a broker or
finder in  connection  with the  Transactions,  and no broker  except  for Libra
Securities  or other person is entitled to any  commission  or finder's fee from
the  Company in  connection  with such  Transactions.  That  certain  engagement
letter,  dated  August  30,  1999,  between  the  Company  and  Allen &  Company
Incorporated (the "Allen & Co. Broker Agreement") expired in accordance with its
terms prior to the beginning of discussions  concerning any transaction  between
any of the Company,  the Shareholders and their respective  Representatives,  on
the one hand, and the Buyer and its Representatives, on the other hand.

      10.23 Books and Records. The books of account,  minute books, stock record
books, and other reports of the Company and its Subsidiaries,  all of which have
been made  available  to the Buyer,  are  complete  and correct in all  material
respects  and have  been  maintained  in  accordance  with  reasonable  business
practices.  At the  Closing  all of  those  books  and  records  will  be in the
possession of the Company's legal counsel.

                                       36
<PAGE>

      10.24 No Undisclosed Liabilities. Except as set forth in Schedule 10.24 of
the Disclosure Schedule, the Company and its Subsidiaries have no liabilities or
obligations of any nature except for  liabilities  or  obligations  reflected or
reserved against in the Financial  Statements,  and current liabilities incurred
in the Ordinary Course of Business since the respective dates thereof.

      10.25   Compliance with Legal Requirements; Governmental Authorizations.

            (a)  Except  as set  forth  in  Schedule  10.25  of  the  Disclosure
      Schedule:

                  (i) the Company and its Subsidiaries are and at all times have
            been in material  compliance with each Legal  Requirement that is or
            was  applicable  to them or to the  conduct of  operations  of their
            business  or the  ownership  or use of any of their  assets,  except
            where the  failure  to comply  could not have a  Materially  Adverse
            effect on the Company or its Subsidiaries; and
                  (ii) the Company and its Subsidiaries have not received at any
            time any notice or other  communication  (whether  oral or  written)
            from any  Governmental  Authority or any other Person  regarding (a)
            any actual, alleged,  possible, or potential violation of or failure
            to comply with any Legal  Requirement,  or (b) any actual,  alleged,
            possible,  or potential obligation on the part of the Company or its
            Subsidiaries to undertake, or to bear all or any portion of the cost
            of, any remedial action of any nature.

            (b)  Except  as set  forth  on  Schedule  10.25  of  the  Disclosure
      Schedule,   the  Company  and  its  Subsidiaries  have  each  Governmental
      Authorization  necessary to permit the Company and its Subsidiaries to, in
      all material respects,  lawfully conduct and operate their business in the
      manner they currently  conduct and operate such business and to permit the
      Company and its  Subsidiaries to own and use their assets in the manner in
      which they currently own and use such assets.

11.   Representations and Warranties of the Shareholders. The Shareholders
hereby, severally but not jointly, represent and warrant to the Buyer the
following:

      11.1 Authorization.  All action on the part of each Shareholder  necessary
for  the  authorization,  execution  and  delivery  of  this  Agreement  and the
performance of all obligations of such  Shareholder  hereunder has been taken or
will be taken prior to the Closing.  This  Agreement  constitutes  the valid and
legally binding obligations of each Shareholder,  enforceable in accordance with
their  respective  terms,  except  (i)  as  limited  by  applicable  bankruptcy,
insolvency,  reorganization,  moratorium  and other laws of general  application
affecting  enforcement of creditors'  rights  generally;  and (ii) as limited by
laws relating to the availability of specific performance,  injunctive relief or
other equitable remedies.

                                       37
<PAGE>

      11.2 Brokers.  The Shareholders  have not employed or authorized anyone to
represent them as a broker or finder in connection with the Transactions, and no
broker or other  person is entitled to any  commission  or finder's fee from the
Shareholders  in  connection  with  the  Transactions.  The  Allen & Co.  Broker
Agreement  expired  in  accordance  with its  terms  prior to the  beginning  of
discussions   concerning  any  transaction  between  any  of  the  Company,  the
Shareholders  and their  respective  Representatives,  on the one hand,  and the
Buyer and its  Representatives,  on the other  hand,  and no amounts are owed or
will be owing by the Company  thereunder due to the execution of this Agreement,
the consummation of the Transactions or otherwise.

      11.3 Shares.  Each of the  Shareholders is the record and beneficial owner
of those  outstanding  Shares  set  forth  in  Schedule  10.2 of the  Disclosure
Schedule as owned by such  Shareholder,  free and clear of all Liens.  Except as
set forth on Schedule 10.2 of the Disclosure Schedule,  none of the Shareholders
is a party to, or has Knowledge of, any voting  agreement,  irrevocable proxy or
other  Arrangement  with respect to the voting of the Shares.  Assuming that the
Buyer (i) owns 100% of the capital  stock of Merger  Sub,  free and clear of all
Liens, and (ii) Merger Sub has issued no options, warrants or other Arrangements
for the  purchase  of its  capital  stock,  each  as  immediately  prior  to the
Effective  Time,  at the Effective  Time upon giving  effect to the Merger,  the
Buyer  will  own  100%  of  the  outstanding  capital  stock  of  the  Surviving
Corporation, free and clear of all Liens, and no Options will be outstanding.

      11.4  Shareholder's  Counsel.  Each of the Shareholders  acknowledges that
such Shareholder has had the opportunity to review this Agreement,  the exhibits
and the schedules attached hereto and the Related Documents and the transactions
contemplated herein and therein with such Shareholder's own legal counsel.

      11.5    Investment Representations.

            (a) Each of the  Shareholders is acquiring a Convertible  Promissory
      Note  for  its own  account  and not  with a view  to the  public  sale or
      distribution thereof.

            (b).  Each  of  the  Shareholders  is  aware  that  the  Convertible
      Promissory  Notes  and the  shares of Buyer  Common  Stock  issuable  upon
      exercise  thereof have not been,  and when issued will not be,  registered
      under the  Securities  Act, or  registered  or  qualified  under any state
      securities  law, on the ground that the Convertible  Promissory  Notes and
      such shares of Buyer Common  Stock are being  issued by the Buyer  without
      any public  offering  within the meaning of Section 4(2) of the Securities
      Act, and therefore  will be subject to  restrictions  on transfer and will
      not be freely  tradable.  The Shares of Buyer Common Stock  issuable  upon
      exercise  of the  Convertible  Promissory  Notes  may  contain  applicable
      securities law legends and transfer restrictions.

            (c) Each of the Shareholders has received such documents,  materials
      and  information as it deems  necessary or  appropriate  for evaluating an
      investment in the Buyer.  Each of the  Shareholders has carefully read and
      understands these materials and has made such further investigation as was
      deemed appropriate to obtain additional information to verify the accuracy
      of such materials and to evaluate the merits and risks of this investment.
      Each of the  Shareholders  has had an  opportunity to ask questions of and
      receive answers from the Buyer concerning the terms and conditions of this
      investment,  and  all  such  questions  have  been  answered  to the  full
      satisfaction of each of the Shareholders.

                                       38
<PAGE>

            (d)  The  Convertible  Promissory  Notes  were  not  offered  to the
      Shareholders by any means of general solicitation or general advertising.

            (e) Each of the  Shareholders  has such  knowledge and experience in
      financial and business matters that it is capable of evaluating the merits
      and  risks  of an  investment  in the  Buyer.  Each  of  the  Shareholders
      understands  that no United  States  federal or State  agency or any other
      government  or  any  governmental   agency  has  passed  on  or  made  any
      recommendation or endorsement of the Convertible  Promissory Notes and the
      shares of Buyer Common Stock issuable upon the  conversion  thereof or the
      fairness or suitability of such an investment,  nor have such  authorities
      passed upon or  endorsed  the merits of the  offering  of the  Convertible
      Promissory Notes.

            (f) Each of the Shareholders is an "accredited  investor" as defined
      in Rule 501 promulgated under the Securities Act. Each of the Shareholders
      is able to bear the  economic  risk of an  investment  in the  Convertible
      Promissory Notes

12.   Covenants.

      12.1  Conduct of Business.

            (a) Except with the written  consent of the Buyer (which will not be
      unreasonably withheld), or as otherwise expressly permitted or required by
      the  terms of this  Agreement  from the date  hereof to the  Closing,  the
      Company shall  conduct its business in the Ordinary  Course of Business in
      substantially  the same manner as presently  conducted  and shall make all
      reasonable   efforts  consistent  with  past  practices  to  preserve  the
      relationships  of the Company with  customers,  suppliers  and others with
      whom the Company deals.

            (b) Without limiting the generality of the foregoing  paragraph (a),
      the Company, without the written consent of the Buyer, will not:

                  (i) amend or propose to amend its Articles of Incorporation or
            Bylaws (or comparable governing instruments);

                  (ii) issue,  sell or  otherwise  dispose of any of its capital
            stock, or grant any options, warrants or other rights to purchase or
            obtain (including upon conversion,  exchange or exercise) any of its
            capital stock;

                  (iii)  declare,  set  aside  or pay any  dividend  or make any
            distribution  with respect to its capital stock  (whether in cash or
            in kind),  or  redeem,  purchase  or  otherwise  acquire  any of its
            capital stock;

                                       39
<PAGE>

                  (iv) create,  incur,  assume or guarantee any  indebtedness or
            capitalized  lease obligations or make any loan or advance or extend
            any credit to any Person (other than trade  credits  extended in the
            Ordinary Course of Business);

                  (v) (A) make any capital expenditures, other than maintenance,
            repairs,  and  replacements in the Ordinary Course of Business,  (B)
            acquire the stock or assets of, or merge or  consolidate  with,  any
            other  Person,  (C)  voluntarily  incur any  material  liability  or
            obligation (absolute, accrued, contingent or otherwise) in excess of
            One  Hundred  Thousand  Dollars  (U.S.$100,000)  other  than  in the
            Ordinary Course of Business, or (D) sell, transfer, mortgage, pledge
            or otherwise  dispose of, or encumber,  or agree to sell,  transfer,
            mortgage,  pledge or otherwise dispose of or encumber, any assets or
            properties  (real,  personal or mixed) material to the Company other
            than in the Ordinary Course of Business;

                  (vi)  except as set forth in Schedule  12.1 of the  Disclosure
            Schedule,  increase  in  any  manner  the  wages,  salaries,  bonus,
            compensation  or other  benefits of any of its officers or employees
            or  enter  into,  establish,  amend  or  terminate  any  employment,
            consulting,  retention,  change in control,  collective  bargaining,
            bonus or other incentive  compensation,  profit  sharing,  health or
            other welfare,  stock option or other equity,  pension,  retirement,
            vacation,  severance,  termination,  deferred  compensation or other
            compensation  or benefit plan,  policy,  agreement,  trust,  fund or
            arrangement  with, for or in respect of, any share holder,  officer,
            director, other employee,  agent, consultant or affiliate other than
            as  required  pursuant to the terms of  agreements  in effect on the
            date of this Agreement,  or enter into or engage in any compensation
            agreement,  arrangement  or  transaction  with any of its directors,
            officers,  employees or affiliates  except current  compensation and
            benefits in the Ordinary Course of Business;

                  (vii) except as set forth on Schedule  12.1 of the  Disclosure
            Schedule,  enter into,  terminate  or amend any  Material  Contract,
            other than the  purchase  of  inventory  in the  Ordinary  Course of
            Business;

                  (viii) discharge any obligations  (including accounts payable)
            other than on a timely basis in the Ordinary Course of Business,  or
            delay or defer the payment of any accounts  payable  beyond the date
            such payable is due without penalty;

                  (ix) sell,  give away or otherwise  dispose of any  inventory,
            other than in the Ordinary Course of Business; or

                  (x)  authorize  any of, or agree to  commit to do any of,  the
            foregoing actions.

      (c) The Company shall use commercially reasonable efforts to comply in all
material  respects  with all  Laws  applicable  to it or any of its  properties,
assets or  business  and  maintain  in full  force and  effect  all the  Permits
necessary for, or otherwise material to, such business.

                                       40
<PAGE>

      12.2 Access to  Information.  During the period from the date hereof until
the Closing or the earlier  termination  of this  Agreement in  accordance  with
Section 14 hereof,  the Company  shall afford to the Buyer and its  accountants,
counsel and other representatives reasonable access during normal business hours
to all the properties, books, contracts, commitments, Tax Returns and records of
the Company;  provided,  however, that such access does not unreasonably disrupt
the normal operations of the Company.

      12.3  Confidentiality.  The Company and the Buyer hereto  acknowledge that
each such party has had, and may from time to time have,  access to confidential
records, data, customers lists, trade secrets and other confidential information
owned or used by the Company or the Buyer (each,  an "Interested  Party") in the
course  of its  business  (the  "Confidential  Information").  Accordingly,  the
Company  and the Buyer each agree (a) to hold all  Confidential  Information  in
strict  confidence,   (b)  not  to  disclose  Confidential  Information  of  any
Interested  Party  to  any  Person  (except  to  such  Interested  Party  or any
Affiliate,  employee,  agent  or  Representative  thereof),  and (c) not to use,
directly or indirectly,  any of such Confidential  Information of any Interested
Party for any competitive or commercial  purpose;  provided,  however,  that the
Company  or the  Buyer  may  disclose  Confidential  Information  to its and its
Affiliates',    officers,   directors,    employees,   agents,   attorneys   and
Representatives  if such  Persons  agree to comply with this Section  12.3;  and
provided,  further,  that,  notwithstanding  anything to the contrary  contained
herein, the Company and the Buyer shall not be subject to any of the limitations
set forth above with respect to any Confidential  Information  which (i) is now,
or hereafter becomes, through no act or failure to act on the part of such party
that constitutes a breach of this Section 12.3,  generally known or available to
the public;  (ii) is hereafter furnished to such party by a third party, who, to
the  knowledge  of  such  receiving  party,  is  not  under  any  obligation  of
confidentiality  to the related  Interested  Party;  (iii) is disclosed with the
written  approval  of the  related  Interested  Party;  (iv) is  required  to be
disclosed by law (including  securities law), court order or similar compulsion;
(v) is  required or is  reasonably  necessary  to be provided  pursuant to or in
connection  with  any  Proceeding  involving  the  parties  hereto;  or  (vi) is
independently  developed  by  employees  or  agents  of such  party  and/or  its
Affiliates  which or who have had no  access  to the  relevant  portions  of the
Confidential Information.

      12.4 Commercially  Reasonable Efforts to Consummate.  Subject to the terms
and  conditions  of this  Agreement,  each  party  shall  use  its  commercially
reasonable  efforts to cause the Closing to occur,  including  defending against
any Proceedings,  judicial or administrative,  challenging this Agreement or the
consummation of the transactions  contemplated  hereby,  and seeking to have any
preliminary  injunction,  temporary  restraining  order,  stay  or  other  legal
restraint or prohibition  entered or imposed by any court or other  Governmental
Authority that is not yet final and nonappealable vacated or reversed; provided,
however,  that none of the Company, the Shareholder or their Affiliates shall be
required to make any material monetary  expenditure,  commence or participate in
any  litigation  or offer or grant  any  material  accommodation  (financial  or
otherwise) to any third Person.

      12.5 Exclusivity. From the date of this Agreement until the earlier of the
Closing or the termination of this Agreement pursuant to Section 14 hereof, none
of the  Shareholders or the Company shall,  and none of the  Shareholders or the
Company shall permit their  respective  Representatives  or brokers to, (a) take

                                       41
<PAGE>

any action to solicit,  initiate  submission  of or encourage,  any  Acquisition
Proposal (as hereinafter  defined),  or (b) continue,  initiate,  participate or
engage in negotiations with, or disclose any non-public  information (other than
in the Ordinary Course of Business or otherwise  required by Law, court order or
similar  compulsion),  relating to the Company,  or to any Person other than the
Buyer and its Affiliates and representatives. The term "Acquisition Proposal" as
used herein means any offer,  proposal or  indication  of interest in connection
with (a) the  acquisition  or  purchase  of all or (other  than in the  Ordinary
Course of  Business)  a portion  of the  assets  of the  Company;  (b) a merger,
consolidation or other business combination to which the Company is a party; (c)
the acquisition of more than 10% of the capital stock of the Company (other than
acquisition of Common Stock  resulting from the exercise of Options  outstanding
as of the date  hereof);  or (d) the  acquisition  of any Shares from any of the
Shareholders.

      12.6 Notice of Prospective Breach; Right to Terminate or Waiver of Such
Right.

      (a) Each party shall immediately  notify the other parties in writing upon
such party becoming aware of the occurrence,  or failure to occur, of any event,
which  occurrence  or failure to occur caused or would be  reasonably  likely to
cause (i) any  representation  or warranty  contained  in this  Agreement  to be
untrue or inaccurate  in any material  respect at any time from the date of this
Agreement to the Closing as if such  representation  and  warranty  were made at
such  time or (ii) any  material  failure  of any party  hereto or any  officer,
director,  employee or agent  thereof,  to comply with or satisfy any  covenant,
condition  or  agreement  to be  complied  with or  satisfied  by it under  this
Agreement.

      (b) The  Company  shall  give  prompt  notice  to the  Buyer if any of the
following occur after the date of this  Agreement:  (i) receipt of any notice or
other communication in writing from any third party alleging that the consent of
such third  party is or may be  required in  connection  with the  Transactions,
provided that such consent  would have been  required to have been  disclosed in
this Agreement;  (ii) receipt of any material notice or other communication from
any  Governmental  Authority  in  connection  with the  Transactions;  (iii) the
occurrence  of an event which would be  reasonably  likely to have a  Materially
Adverse  effect  on the  Company;  or (iv) the  commencement  or  threat  of any
Proceeding  involving  or  affecting  the  Company  or  any  of  its  respective
properties or assets,  or, to its Knowledge,  any employee,  agent,  director or
officer, in his or her capacity as such, of the Company which, if pending on the
date hereof,  would have been required to have been  disclosed in this Agreement
or which relates to the consummation of the Transactions.

      12.7  Expenses and Transfer Taxes.

      (a)  Whether  or not the  Closing  takes  place,  all costs  and  expenses
incurred  by the  Company in  connection  with this  Agreement  and the  Related
Documents and the Transactions,  including,  without limitation, the fees, costs
and  expenses  of Libra  Securities  and any other  broker  or finder  employed,
authorized  or  retained  by any of  the  Company,  the  Shareholders  or  their
respective  Representatives  (including,  but not  limited  to,  Allen & Company
Incorporated),  shall be  considered  Merger  Expenses  at  Closing  and paid at
Closing or at such other time as they come due if the Closing  takes place.  All
such  expenses  shall  be set  forth  on the  Schedule  12.7  of the  Disclosure
Schedule,  which  schedule  will be  delivered  to the Buyer at  Closing  if the
Closing takes place or promptly  following the  termination  of this  Agreement.
Whether or not the Closing takes place,  all costs and expenses  incurred by the
Buyer, Merger Sub and the Shareholders in connection with this Agreement and the
Related Documents and the Transactions  contemplated hereby and thereby shall be
paid by such party incurring such expense.

                                       42
<PAGE>

      (b) All United States transfer,  documentary,  sales,  use,  registration,
value-added and other similar Taxes (including all applicable United States real
estate  transfer Taxes and United States real property  transfer gains Taxes and
including  any filing and recording  fees) and related  amounts  (including  any
penalties,  interest and  additions  to Tax)  incurred in  connection  with this
Agreement,  the Related Documents and the Transactions  ("Transfer Taxes") shall
be paid by the Buyer. Each party shall use reasonable efforts to avail itself of
any available exemptions from any such Transfer Taxes, and to cooperate with the
other  parties  in  providing  any  information  and  documentation  that may be
necessary to obtain such exemptions.

      12.8  Publicity.  From the date hereof through the Closing Date, no public
release or announcement concerning the transactions contemplated hereby shall be
issued by the Company,  the Buyer,  Merger Sub, or the Shareholders  without the
prior consent of the Company, the Buyer, Merger Sub, and the Shareholders (which
consent shall not be unreasonably withheld,  conditioned or delayed),  except as
such release or announcement  may be required by Law or the rules or regulations
of any United  States or foreign  securities  exchange,  in which case the party
required  to make the  release or  announcement  shall  allow the other  parties
reasonable  time to comment on such release or  announcement  in advance of such
issuance.

      12.9 Shareholder Meeting or Shareholder Consent. The Company shall cause a
meeting of its shareholders  (the  "Shareholder  Meeting") to be duly called and
held as soon as reasonably  practicable following the date of this Agreement for
the purpose of voting on the  approval and  adoption of this  Agreement  and the
approval of the Merger and the other Transactions, unless a vote of shareholders
of the  Company is not  required  by Texas Law.  The Board of  Directors  of the
Company shall  recommend  approval and adoption of this Agreement and the Merger
by the Company's shareholders.  At the Shareholder Meeting, the Shareholders and
their  respective  Affiliates  will  vote all  Shares  owned by them in favor of
approval and adoption of this Agreement,  and the approval of the Merger and the
other  Transactions.  Notwithstanding  the  foregoing,  in lieu of a Shareholder
Meeting,  in  accordance  with Texas Law the  shareholders  of the  Company  may
approve  and  adopt  this  Agreement  and  approve  the  Merger  and  the  other
Transactions  by a written  consent(s)  signed by the holder(s) of Shares having
not less than the minimum  number of votes that would be  necessary to take such
actions at a meeting at which the holders of all Shares  entitled to vote on the
actions were present and voted.

      12.10 Completion of Audits and Delivery of Financial Statements.  Prior to
the Effective Time, the Company shall use its commercially reasonable efforts to
complete the audit of its financial  statements  for the year ended December 31,
2004 on or before March 15, 2005.  Following the Effective Time, the Buyer shall
use its commercially  reasonable  efforts to cause the Surviving  Corporation to
complete the audit of its financial  statements  for the year ended December 31,
2004 on or before March 15, 2005,  or if the  Effective  Time is after March 15,
2005, promptly thereafter as commercially reasonable, and deliver a copy thereof
to Terra and Amadeus.  The Company shall deliver a copy of its unaudited balance
sheet as of  January  31,  2005 to the Buyer at least five (5) days prior to the
Closing.

                                       43
<PAGE>

      12.11  Non-Solicitation.  For a period of one (1) year  from the  Closing,
none of the Shareholders  shall, and each of the Shareholders  shall cause their
Affiliates and Related  Persons not to, without the prior written consent of the
Surviving   Corporation,   directly  or   indirectly,   as  agent,   consultant,
distributor,  representative,  stockholder,  manager,  partner  or in any  other
capacity,  recruit or solicit for  employment or  engagement,  any person who is
then  employed or engaged by the Company,  or who was employed or engaged by the
Buyer within six (6) months of such  contact.  For a period of one (1) year from
the Closing,  none of the Shareholders shall, and each of the Shareholders shall
cause their  Affiliates  and Related  Persons not to,  without the prior written
consent  of  the  Surviving  Corporation,  directly  or  indirectly,  as  agent,
consultant, distributor, representative, stockholder, manager, partner or in any
other  capacity,  employ or engage or  recruit  or  solicit  for  employment  or
engagement,  any of Philip A.  Ferri,  Norman  Knowles,  Henry Wang or Steven J.
Pello.

      12.12  Letters of Credit.  For a period of six (6)  months  following  the
Effective  Time,  the  Shareholders  shall  cause the  letters of credit for the
benefit of the  Company  listed on  Exhibit D attached  hereto to remain in full
force and effect for the benefit of the Surviving Corporation, without amendment
or modification. The Surviving Corporation shall pay a monthly fee in advance to
the  Shareholders  who are parties to or  otherwise  guarantee  such  letters of
credit equal in the  aggregate to one percent (1%) of the amount of such letters
of credit. In the event that the Shareholders are required to cause such letters
of credit to remain in effect for the benefit of the Surviving  Corporation  for
greater  than three (3) months  following  the  Effective  Date,  the  Surviving
Corporation  shall,  or shall cause its lenders to,  provide  guarantees of such
letters of credit in form reasonably satisfactory to the Shareholders.

      12.13 Payment of Amadeus/Terra Loans. In conjunction with the Closing, the
Buyer shall  satisfy and  discharge  the Company  Indebtedness  set forth on the
Company Indebtedness  Closing Schedule,  including the Amadeus/Terra Loans which
amounts  shall  reduce  the amount of the  Merger  Consideration  payable to the
Shareholders of the Company in accordance with Section 4(b).

      12.14 Company  Warrants.  The Company shall give at least thirty (30) days
prior  written  notice of the  consummation  of the Merger to the holders of all
outstanding warrants to purchase shares of capital stock of the Company which by
their terms  require at least  thirty (30) days notice to the holder  prior to a
"Termination  Event" (as  defined in such  warrant) or the  consummation  of the
Merger, and all such warrants shall have been exercised by the holder thereof or
expired as of immediately prior to the Closing.  The Company shall have provided
the Buyer with satisfactory  written evidence of such notice and of such warrant
exercise or expiration prior to the Closing.

      12.15 Allen & Company Warrants. Prior to the Closing, the Company will use
its  commercially  reasonable  best  efforts to cancel the  350,020  warrants to
purchase the capital stock of the Company  represented  by that certain  Warrant
Certificate,  dated September 9, 1999,  issued by the Company to Allen & Company
Incorporated (the "Allen & Co.  Warrants"),  at no cost to the Company,  and the
Company shall use its commercially  reasonable best efforts to provide the Buyer
with satisfactory written evidence thereof.

                                       44
<PAGE>

      12.16  Stay Pay  Bonuses.  The  Buyer  agrees  that if any of the Stay Pay
Bonuses  are repaid to the  Surviving  Corporation  or the Buyer  following  the
Closing Date,  then the Buyer shall or shall cause the Surviving  Corporation to
immediately  pay  such  funds  to  the  Escrow  Agent  for  distribution  to the
shareholders of the Company.

      12.17 2004 Financial  Statements.  Following the Closing, the Shareholders
shall cooperate with the Surviving Corporation and the Buyer with respect to the
preparation  of the audit of the  financial  statements  of the  Company and its
Subsidiaries  for the 2004  fiscal  year and shall  cause  Terra to satisfy  the
requirements of Section 13.2(j) with respect thereto.

13.   Conditions Precedent.

      13.1 Conditions to Each Party's  Obligation.  The obligation of the Buyer,
Merger Sub, the Shareholders and the Company to consummate the Merger is subject
to the  satisfaction  or waiver on or prior to the Closing of the conditions set
forth below.

            (a) No  Injunctions  or  Restraints.  No Law or injunction  enacted,
      entered, promulgated,  enforced or issued by any Governmental Authority or
      other legal  restraint or prohibition  preventing the  consummation of the
      transactions  contemplated hereby shall be in effect;  provided,  however,
      that each of the  Company,  the Buyer and  Merger  Sub shall have used its
      commercially   reasonable  efforts  to  prevent  the  entry  of  any  such
      injunction  or other order and to appeal as promptly as possible  any such
      injunction or other order that may entered.

            (b)  Each  of  the  parties  hereto  and,  where   applicable,   the
      Shareholder  Representative  shall have entered into such other agreements
      as the parties hereto shall mutually  agree,  including but not limited to
      the Escrow Agreement (the "Related Documents").

            (c) The  holders  of the  Convertible  Promissory  Notes  shall have
      entered into an Inter-creditor Agreement in a form required by the Buyer's
      present and future lenders  (subject to the approval of the holders of the
      Convertible  Promissory Notes, not to be unreasonably  withheld) regarding
      such  holders'  security  interests  under the  Security  Agreements  (the
      "Inter-creditor  Agreement").  The Inter-creditor  Agreement shall provide
      that the security  interests of the holders of the Convertible  Promissory
      Notes under their respective  Security  Agreements shall be (i) pari passu
      with the security  interests  of the Buyer's  lenders who finance the cash
      portion of the Merger  Consideration  and the Buyer's lenders who financed
      approximately  $7,000,000 on or about February 8, 2005; and (ii) senior to
      the security  interests  all of the Buyer's other  lienholders  other than
      Permitted Liens.

                                       45
<PAGE>

      13.2  Conditions to Obligation of the Buyer and Merger Sub. The obligation
of the  Buyer  and  Merger  Sub to  consummate  the  Merger  is  subject  to the
satisfaction  (or  waiver  by the  Buyer)  on or  prior  to the  Closing  of the
conditions set forth below.

            (a)   Representations   and  Warranties.   The  representations  and
      warranties of the Company made in this Agreement  considered  individually
      and collectively shall be true and correct as of the date hereof and as of
      the Closing  Date as though made on and as of the Closing Date (other than
      any  representation or warranty that expressly relates to a specific date,
      which  representation  and  warranty  shall  be  correct  on the  date  so
      specified), without giving effect to any notices given pursuant to Section
      12.6(a) or (b) hereof, except where the failure to comply would not have a
      Materially  Adverse effect on the Company or its  Subsidiaries.  The Buyer
      shall have received a certificate  signed by an authorized  officer of the
      Company (the "Company Bringdown Certificate") certifying as to fulfillment
      of the  conditions  set forth in this Section  13.2(a) with respect to the
      Company and setting forth any notices given or required to be given by the
      Company  pursuant  to  Sections  12.6(a)  or (b)  from  the  date  of this
      Agreement through the Closing Date.

            (b) Performance of Obligations.  The Company shall have performed or
      complied in all  material  respects  with all  obligations  and  covenants
      required by this Agreement to be performed or complied with by the Company
      by  the  time  of the  Closing,  and  the  Buyer  shall  have  received  a
      certificate  signed by an authorized  officer of the Company certifying as
      to fulfillment  of the  conditions set forth in this Section  13.2(b) with
      respect to the Company.

            (c)  Secretary's  Certificate.  The  Buyer  shall  have  received  a
      certificate,  dated as of the Closing Date, signed by the Secretary of the
      Company and certifying as to (i) its Articles of Incorporation  and Bylaws
      and the  incumbency of officers  executing  this Agreement and each of the
      Related  Documents  to  which  the  Company  is  a  party;  and  (ii)  the
      resolutions  of the board of  directors  of the  Company  authorizing  the
      execution,  delivery and  performance by the Company of this Agreement and
      each of the Related Documents to which the Company is a party.

            (d) Consents.  The Company shall have received all material consents
      or approvals required in connection with the Transactions.

            (e) Approval by Company Shareholders.  This Agreement and the Merger
      shall have been approved and adopted by the shareholders of the Company in
      accordance with Texas Law.

            (f) Opinion of Counsel. Counsel for the Company shall have delivered
      to the  Buyer an  opinion  letter  with  respect  to  matters  customarily
      addressed in such letters in connection with transactions  similar to this
      Agreement,  the Merger and the other  Transactions,  in form and substance
      acceptable to the Buyer and its counsel.

                                       46
<PAGE>

            (g)  Dissenting  Shares.  Holders of no more than two  percent  (2%)
      Shares  outstanding as of the Closing Date shall demand appraisal for such
      Shares in accordance with Texas law.

            (h)  Company  Indebtedness  Closing  Schedule.  The Buyer shall have
      received a schedule  which  describes all Company  Indebtedness  as of the
      Closing,  including  the  identity  of the  Persons  to whom such  Company
      Indebtedness is owed, the principal amount of such Company Indebtedness as
      of the Closing and any prepayment fees or penalties with respect  thereto,
      which schedule  shall be certified as being true,  correct and complete in
      all respects by the President of the Company and each of the  Shareholders
      (the "Company  Indebtedness Closing Schedule").  The information set forth
      on the Company  Indebtedness  Closing  Schedule shall not vary  materially
      from the information set forth on Schedule 10.18(b),  subject to the delay
      between the date of this  Agreement and the Closing Date and actions taken
      by the Company as set forth on Schedule 12.1 of the Disclosure Schedule.

            (i) Pay-off  Letters.  The Buyer shall have received pay-off letters
      and Lien releases, if applicable,  with respect to the Amadeus/Terra Loans
      satisfied and discharged by the Buyer at Closing.

            (j) Company Financial Statements and Pro Forma Information. Prior to
      Closing,  the Company shall deliver to the Buyer  financial  statements of
      the  Company  and  its  Subsidiaries  (including,  if  necessary,  audited
      financial  statements of the Company and its Subsidiaries for the 2002 and
      2003  fiscal  years of the Company  and its  Subsidiaries),  and pro forma
      financial information, in form and substance as required to be included in
      the filings of the Buyer with the SEC. Such  financial  statements and pro
      forma  financial  information  shall include all  adjustment  necessary to
      comply  with  SEC-required  GAAP  (including,  but  not  limited  to,  all
      adjustments  required to be  presented  in order to push down the purchase
      accounting  applied  by  the  Shareholders  and  their  affiliates  to the
      Company).

            (k) FIRPTA  Certificate.  The Company  shall  deliver to the Buyer a
      FIRPTA  Certificate  executed by an  authorized  officer of the Company in
      order for the Buyer to be  exempt  from  withholding  any  portion  of the
      Merger Consideration.

            (l)  Termination  of  Agreements.  The  Buyer  shall  have  received
      evidence in form and substance satisfactory to the Buyer of termination of
      those  Arrangements of the Company and the  shareholders of the Company or
      the other  holders of  securities  of the  Company  set forth on  Schedule
      13.2(l).

      13.3 Conditions to the Obligation of the Company and the Shareholders. The
obligation  of the  Company and the  Shareholders  to  consummate  the Merger is
subject  to the  satisfaction  (or  waiver  by the  Company)  on or prior to the
Closing of the conditions set forth below.

                                       47
<PAGE>

            (a)  Representations and Warranties of the Buyer and Merger Sub. The
      representations  and  warranties  of the Buyer and Merger Sub made in this
      Agreement  shall be true and  correct as of the date  hereof and as of the
      Closing  Date as though made on and as of the Closing Date (other than any
      representation  or warranty  that  expressly  relates to a specific  date,
      which  representation  and  warranty  shall  be  correct  on the  date  so
      specified), without giving effect to any notices given pursuant to Section
      12.6(a) or (b) hereof, except where the failure to comply would not have a
      Materially  Adverse effect on the Buyer or Merger Sub. The Company and the
      Shareholders  shall have  received a  certificate  signed by an authorized
      officer (the "Buyer  Bringdown  Certificate")  of the Buyer and Merger Sub
      certifying as to  fulfillment  of the conditions set forth in this Section
      13.3(a)  with  respect to the Buyer and Merger Sub and  setting  forth any
      notices  given or required  to be given by the Buyer  pursuant to Sections
      12.6(a) or (b) from the date of this Agreement through the Closing Date.

            (b)  Performance of  Obligations of the Buyer.  The Buyer and Merger
      Sub shall have  performed  or complied in all material  respects  with all
      obligations  and covenants  required by this  Agreement to be performed or
      complied with by the Buyer and Merger Sub by the time of the Closing,  and
      the Company  shall have  received a  certificate  signed by an  authorized
      officer of the Buyer and Merger Sub to such effect.

            (c)  Secretary's  Certificate.  The  Company  shall have  received a
      certificate, dated as of the Closing Date, signed by the Secretary of each
      of the Buyer and Merger Sub,  respectively,  and  certifying as to (i) its
      Articles of  Incorporation  and Bylaws or other  charter  document and the
      incumbency of officers  executing  this  Agreement and each of the Related
      Documents to which the Buyer or Merger Sub, respectively,  is a party; and
      (ii) the resolutions of the board of directors of the Buyer or Merger Sub,
      respectively,  authorizing the execution,  delivery and performance by the
      Buyer and  Merger  Sub,  respectively  of this  Agreement  and each of the
      Related  Documents  to which the Buyer or Merger Sub,  respectively,  is a
      party.

      13.4 Frustration of Closing Conditions.  Neither the Buyer nor the Company
may rely on the  failure  of any  condition  set forth in this  Section 13 to be
satisfied  if such  failure  was caused by such  party's  failure to act in good
faith or to use its  commercially  reasonable  efforts  to cause the  Closing to
occur, as required by Section 12.4.

14.   Termination.

      14.1  Termination.

            (a) This Agreement may be terminated  and,  subject to Section 14.2,
      the  transactions  contemplated  by this  Agreement  abandoned at any time
      prior to the Closing:

                  (i) by mutual written consent of the Company and the Buyer;

                  (ii) by either the Company or the Buyer,  if the Closing  does
            not occur on or prior to the  Closing  Date set  forth in  Section 8
            hereof;  provided,   however,  that  the  right  to  terminate  this
            Agreement  under this clause (ii) shall not be  available  to either
            party whose failure to fulfill any  obligation  under this Agreement
            has been the cause of, or resulted in, the failure of the Closing to
            occur on or before such date;

                                       48
<PAGE>

                  (iii) by the Company or the Buyer,  in writing,  if any of the
            conditions set forth in Section 13.1 shall have become  incapable of
            fulfillment;

                  (iv) by the Company,  in writing, if any of the conditions set
            forth in Section 13.3 shall have become  incapable  of  fulfillment,
            and shall not have been waived by the Company; or

                  (v) by the Buyer,  in writing,  if any of the  conditions  set
            forth in Section 13.2 shall become  incapable  of  fulfillment,  and
            shall not have been waived by the Buyer;

      provided,  however,  that the party seeking  termination of this Agreement
      pursuant to clause (ii), (iii), (iv) or (v) is not in breach of any of its
      representations,  warranties,  covenants or  agreements  contained in this
      Agreement  that is causing  the  failure  by the other  party to satisfy a
      condition set forth in Section 13.

            (b) In the event of the termination of this Agreement by the Company
      or the Buyer  pursuant to this Section 14.1,  written notice thereof shall
      forthwith be given to the other party and the Shareholder  Representative,
      and,  subject to  Section  14.2,  the  Transactions  shall be  terminated,
      without further action by any party. If the Transactions are terminated as
      provided herein:

                  (i) the Buyer shall return all  documents  and other  material
            received from the Company relating to the  Transactions,  whether so
            obtained before or after the execution hereof, to the Company; and

                  (ii) all Confidential  Information  received by the Buyer with
            respect  to  the  business  of  the  Company  shall  be  treated  in
            accordance  with Section 12.3,  which shall remain in full force and
            effect notwithstanding the termination of this Agreement.

      14.2  Effect of  Termination.  If this  Agreement  is  terminated  and the
transactions  contemplated  hereby are  abandoned as described in Section  14.1,
this  Agreement  shall become null and void and of no further  force and effect,
except for the provisions of Sections 12.3, 12.5, 12.7(a), 12.8, this Section 14
and Section 16.  Notwithstanding  the foregoing,  in the event this Agreement is
terminated by the Company as a consequence of a material  breach by the Buyer of
its obligations  hereunder,  the Company shall be entitled to retain the Initial
Deposit Amount and the Closing  Deposit  Amount,  if any, as liquidated  damages
with respect to the  termination  of this  Agreement and the  abandonment of the
Transactions,  and the Buyer shall have no further  liability  to the Company or
any other party hereto in connection  with such  termination  and abandonment or
other failure of the Buyer to consummate the Transactions.

                                       49
<PAGE>

15.   Indemnification.

      15.1  Shareholders Indemnification.

            (a)  Following  the  Closing,  to the fullest  extent  permitted  by
      applicable  law,  the  Shareholders  shall,  severally,  but not  jointly,
      indemnify,  defend and hold the Surviving  Corporation,  the Buyer, Merger
      Sub and their  respective  Representatives  harmless  from and against any
      claims, actions, causes of action, assessments,  losses, demands, damages,
      (including incidental and consequential  damages) judgments,  liabilities,
      costs  and  expenses,  including  without  limitation,  costs of  defense,
      reasonable  out-of-pocket  attorneys' fees, costs and expenses,  interest,
      penalties and  reasonable  expenses or diminution of value (whether or not
      involving a third-party  claim) ("Claims" or "Claim"),  asserted  against,
      imposed  upon,  suffered or incurred by, the  Surviving  Corporation,  the
      Buyer, Merger Sub and their respective  Representatives  arising out of or
      relating to (i) the breach of any  representation or warranty set forth in
      Articles 10 or 11 hereof as of the date  hereof or as of the Closing  Date
      without  giving effect to any notices given  pursuant to Sections 12.6 (a)
      or (b) hereof or the Company  Bringdown  Certificate;  (ii) the default or
      failure to perform by the Company or any of the Shareholders of any of the
      terms or covenants to be performed by the Company or the  Shareholders  in
      this  Agreement;  (iii) any claim for a  commission  or fee by a broker or
      finder acting on behalf of any of the Company or the  Shareholders  or any
      of their respective Representatives,  or any other expenses required to be
      paid by the  Shareholders  pursuant to Section 12.7(a) hereof  (including,
      but not  limited  to,  claims  by Libra  Securities  and  Allen &  Company
      Incorporated);  (iv)  any  claim  with  respect  to the  Allen  &  Company
      Warrants;  and (v) any claims  with  respect to the  Company  Indebtedness
      (excluding operating leases) other than as specifically  identified on the
      Company  Indebtedness  Closing  Schedule in the amounts  specifically  set
      forth thereon,  including the Amadeus/Terra Loans, and paid as part of the
      Merger Expenses;  provided, however, that the right to present a Claim for
      indemnification pursuant to the terms of this Article 15 under this clause
      (v) of Section  15.1(a)  shall  survive the Closing for a period of twelve
      (12) months thereafter.

            (b) Notwithstanding  the foregoing,  other than in the case of fraud
      or  willful  misconduct,  the  Shareholders  shall  not  be  obligated  to
      indemnify  the  Surviving  Corporation,  the  Buyer,  Merger Sub and their
      respective  Representatives under this Agreement or in connection with the
      Transactions:

                  (i)  against   Claims  to  the  extent  caused  by  the  gross
            negligence or willful  misconduct of the Buyer,  Merger Sub or their
            respective Representatives;

                  (ii)  with  respect  to  the  Shareholders,   each  considered
            individually,  for any amounts greater than such  Shareholder's  pro
            rata   portion   of  the   Merger   Consideration   (excluding   any
            consideration   received  by  Amadeus  and  Terra  (including  Terra
            Networks)  from the  Merger  Consideration  for the  payment  of the
            Amadeus/Terra Loans);

                                       50
<PAGE>

                  (iii)  subject to the  limitations  described  in clause  (vi)
            below, with respect to the Shareholders  considered jointly, for any
            Claims arising out of or relating to Section 15.1(a)(i) above, other
            than  in  connection  with  a  breach  of  the   representations  or
            warranties  contained in Section 10.4,  Section 11.1,  Section 11.5,
            the last  sentence  of Section  10.2,  the last  sentence of Section
            10.13(b),  and the last sentence of Section 11.3, any amounts in the
            aggregate greater than 16.66% of the Merger Consideration (excluding
            any  consideration  received by Amadeus and Terra  (including  Terra
            Networks)  from the  Merger  Consideration  for the  payment  of the
            Amadeus/Terra Loans) (the "Cap");

                  (iv) subject to the limitations described in the other clauses
            of this Section  15.1(b),  unless the Indemnified  Party (as defined
            below) seeks  indemnification  for each Claim from all Shareholders,
            with each  Shareholder  liable  as to any  Claim  only for an amount
            equal to the Claim multiplied by a fraction,  the numerator of which
            is such  Shareholder's pro rata portion of the Merger  Consideration
            (excluding   any   consideration   received  by  Amadeus  and  Terra
            (including  Terra  Networks) from the Merger  Consideration  for the
            payment of the Amadeus/Terra  Loans) and the denominator of which is
            the  aggregate  Merger  Consideration  payable  to the  Shareholders
            (excluding   any   consideration   received  by  Amadeus  and  Terra
            (including  Terra  Networks) from the Merger  Consideration  for the
            payment of the Amadeus/Terra Loans);

                  (v) for any  Claims  arising  out of or  relating  to  Section
            15.1(a)(i)  above,  other  than in  connection  with a breach of the
            representation or warranty  contained in Section 10.4, Section 11.1,
            Section 11.5,  the last sentence of Section 10.2,  the last sentence
            of Section  10.13(b),  and the last sentence of Section 11.3,  until
            such Claims exceed Two Hundred Thousand Dollars (U.S. $200,000) (the
            "Threshold Amount"),  and then only for such Claims in excess of the
            Threshold Amount; and

                  (vi) notwithstanding clause (iv) hereof above to the contrary,
            for any  Claim(s)  arising  out of or  relating  to a breach  of the
            obligations  of the  Shareholders  under  Section  12.11  unless the
            Indemnified Party seeks  indemnification for such Claim(s) from only
            the  Shareholders  who is alleged to have breached Section 12.11 and
            not  from  the  other  Shareholders  who  at  such  time  remain  in
            compliance with the terms of Section 12.11.

            (c) For  purposes of the  Shareholders  indemnification  obligations
      hereunder  only, the Cap shall be calculated  based upon the actual Merger
      Consideration  received by the  Shareholders in cash or its equivalent and
      to the extent the Shareholders  have not received payment of the principal
      amount of the Convertible Promissory Notes or shares of Buyer Common Stock
      upon the proper  conversion of such Convertible  Promissory Notes then the
      term  "Merger  Consideration"  as used in  Section  15.1(b)(iii)  shall be
      adjusted  proportionally  (i.e.  increased  or  decreased)  to reflect the
      amount actually paid to the Shareholders in cash or its equivalent  (i.e.,
      Buyer Common Stock upon conversion).

                                       51
<PAGE>

            (d) For  purposes  of  clarity,  the  parties  agree that the phrase
      "without  giving effect to any notices given pursuant to Sections  12.6(a)
      or (b) or the Company / Buyer Bringdown  Certificate"  shall mean that the
      delivery of notice with respect to the matters set forth on such notice or
      certificate shall not serve as a cure of a breach of any representation or
      warranty   contained   in  this   Agreement,   and  that   the   right  to
      indemnification  pursuant to this Article 15 in  connection  with any such
      breach shall continue notwithstanding such notice or certificate.

      15.2  Buyer Indemnification.

            (a)  Following  the  Closing,  to the fullest  extent  permitted  by
      applicable  law,  the Buyer and Merger Sub shall,  jointly and  severally,
      indemnify,  defend  and hold  the  Company,  the  Shareholders  and  their
      respective  Representatives  harmless from and against any Claims asserted
      against,   imposed  upon,  suffered  or  incurred  by  the  Company,   the
      Shareholders and their respective  Representatives  arising out of (i) the
      breach of any  representation or warranty set forth in Article 9 hereof as
      of the date hereof or as of the Closing Date without  giving effect to any
      notices  given  pursuant to  Sections  12.6 (a) or (b) hereof or the Buyer
      Bringdown Certificate; (ii) the default or failure to perform by the Buyer
      or Merger  Sub of any of the terms or  covenants  to be  performed  by the
      Buyer  or  Merger  Sub in  this  Agreement;  and  (iii)  any  claim  for a
      commission  or fee by a broker  or  finder  acting on behalf of any of the
      Buyer or Merger Sub or any of their respective Representatives.

            (b) Notwithstanding  the foregoing,  other than in the case of fraud
      or willful  misconduct,  the Buyer shall not be obligated to indemnify the
      Shareholders and their respective  Representatives under this Agreement or
      in connection with the Transactions:

                  (i) for any  Claims  arising  out of or  relating  to  Section
            15.2(a)(i),   other  than  in  connection   with  a  breach  of  the
            representation or warranty  contained in Section 9.4, any amounts in
            the aggregate greater than the Cap; and

                  (ii) for any  Claims  arising  out of or  relating  to Section
            15.2(a)(i),   other  than  in  connection   with  a  breach  of  the
            representation  or warranty  contained  in Section  9.4,  until such
            Claims exceed the Threshold Amount, and then only for such Claims in
            excess of the Threshold Amount.

      15.3 Indemnification;  Notice and Settlement. For purposes of this Section
15, the term  "Indemnifying  Party" when used in  connection  with a  particular
Claim means the Person  (whether one or more) having an  obligation to indemnify
with  respect  to  such  Claim  pursuant  to  this  Section  14,  and  the  term
"Indemnified  Party" when used in connection  with a particular  Claim means the
Person (whether one or more) having the right to be indemnified  with respect to
such Claim pursuant to this Section 15. The following  procedures  will apply to
the indemnification obligations set forth in this Agreement:

                                       52
<PAGE>

            (a) Direct  Claims.  If any  Indemnified  Party  should have a Claim
      against any  Indemnifying  Party  hereunder  that does not involve a Claim
      against such  Indemnified  Party by a third party,  the Indemnified  Party
      will transmit to the  Indemnifying  Party a written notice with respect to
      such Claim,  specifying the basis  therefore and the amount of such Claim;
      provided,  however,  that any failure or delay in providing such notice to
      the  Indemnifying  Party will not  relieve the  Indemnifying  Party of any
      obligation  hereunder  except to the  extent  and only to the  extent  the
      Indemnifying Party was actually  prejudiced by such delay or failure. If a
      Claim may be deemed to involve  both a direct  Claim (and thus  subject to
      the terms of this  Section  15.3(a))  and a Claim  involving a third party
      (and thus  subject  to the terms of Section  15.3(b)),  it will be treated
      hereunder as a Claim involving a third party.

            (b) Third Party Claims.  Promptly after receipt of written notice of
      a Claim involving a third party,  the Indemnified  Party against whom such
      Claim is asserted will give the  Indemnifying  Party written notice of any
      such Claim,  specifying the basis  therefore and the amount of such Claim;
      provided,  however,  that any failure or delay in providing such notice to
      the  Indemnifying  Party will not  relieve the  Indemnifying  Party of any
      obligations  hereunder  except to the  extent  and only to the  extent the
      Indemnifying Party was actually  prejudiced by such delay or failure.  The
      Indemnifying  Party  will  promptly  designate  counsel  chosen  by it and
      reasonably   acceptable  to  the   Indemnified   Party  to  represent  the
      Indemnified Party in connection with such Claim and the Indemnifying Party
      will pay all costs of investigation, litigation or arbitration incurred in
      connection  with  such  Claim  including,  without  limitation,  fees  and
      expenses of such counsel.  The  Indemnifying  Party will not be liable for
      the fees or expenses of separate counsel for the Indemnified Party, unless
      the counsel designated by the Indemnifying Party is unable, due to ethical
      considerations,  to fully represent the Indemnified  Party with respect to
      such Claim,  in which case the  Indemnifying  Party will be liable for the
      reasonable  fees and expenses of one separate  counsel for the Indemnified
      Party.  Unless the  Indemnifying  Party has  delivered to the  Indemnified
      Party  a  written  statement  in  form  and  substance  acceptable  to the
      Indemnified  Party  acknowledging  and confirming  that a subject Claim is
      fully  within  the  scope  of  the  indemnification   obligations  of  the
      Indemnifying  Party under this Agreement,  the Indemnified Party will have
      the sole right to direct the  conduct of the  defense of such Claim and to
      settle or  compromise  such Claim on such terms as the  Indemnified  Party
      will determine in its sole discretion  without  prejudice to the rights of
      the  Indemnified  Party to seek  indemnity  under this  Agreement.  If the
      Indemnifying Party delivers to the Indemnified Party the written statement
      referred  to in the  preceding  sentence,  the  subject  Claim  may not be
      settled  or  compromised   without  the  prior  written   consent  of  the
      Indemnifying  Party. The Indemnified Party will use its reasonable efforts
      to cooperate  fully with  respect to the defense of any Claim.  Unless the
      Indemnifying  Party  has  delivered  to the  Indemnified  Party a  written
      statement  in form  and  substance  acceptable  to the  Indemnified  Party
      acknowledging  and  confirming  that a subject  Claim is fully  within the
      scope of indemnification  obligations of the Indemnifying Party under this
      Agreement,  if after the  passage  of a  reasonable  period of time  after

                                       53
<PAGE>

      notice of any Claim,  the  Indemnifying  Party has not initiated a defense
      against such Claim, the Indemnified Party will have the right to undertake
      the defense,  compromise  or settlement of such Claim at any time prior to
      settlement,  compromise or final  determination  thereof and any action so
      taken by the Indemnified Party with regard to such defense,  compromise or
      settlement  will be deemed to be within the  protection  afforded  by this
      Agreement;  provided, however, that any settlement of any such Claim shall
      require the prior written consent of the Indemnifying Party, which consent
      shall not be unreasonably withheld or delayed.

      Anything in this  Section  15.3 to the  contrary  notwithstanding,  (i) if
there is a reasonable  possibility that a Claim may materially  adversely affect
the  Indemnified  Party  other than as a result of money  damages or other money
payments  that  are  within  the  protection  afforded  by this  Agreement,  the
Indemnified  Party  will have the right,  at the  Indemnified  Party's  cost and
expense,  to defend,  and,  with the consent of the  Indemnifying  Party  (which
consent will not be unreasonably  withheld or delayed),  to compromise or settle
such claim;  and (ii) the  Indemnifying  Party will not settle or compromise any
Claim or  consent  to the  entry of any  judgment  that does not  include  as an
unconditional  term  thereof  the giving by the  claimant  or  plaintiff  to the
Indemnified  Party  a full,  irrevocable  and  unconditional  release  from  all
liability  in  respect of such  Claim.  In the event that there is more than one
Indemnified Party or more than one Indemnifying Party with respect to any Claim,
any notice  contemplated  by this  Section  15.3 to be given to the  Indemnified
Party or the  Indemnifying  Party will be deemed to be given for purposes hereof
if it is  given  to  any  Indemnified  Party,  in the  case  of  notices  to the
Indemnified  Party, or to any Indemnifying  Party, in the case of notices to the
Indemnifying Party.

      15.4 Survival;  Non-Waiver of Rights. The  representations  and warranties
made or deemed  made by any party to another  shall  survive  the  Closing for a
period of twelve  (12) months  thereafter,  and the  delivery of all  documents,
funds and  investments  delivered  pursuant  hereto and shall not be affected or
deemed  waived by reason of the fact that another  party or its  Representatives
knew or should have known that any such representations,  warranties,  covenants
or  agreement  is or  might  be  inaccurate  in any  respect,  except  that  the
representations  and  warranties  made in Sections 10.19 (Tax Matters) and 10.21
(Employee  Benefit  Plans and  Agreements)  shall  survive the Closing until the
expiration of the applicable statutes of limitations, plus thirty (30) days, the
representations  and  warranties  contained in the last sentence of Section 10.2
shall  survive  until  the  second  anniversary  of the  Closing  Date,  and the
representations  and  warranties  set  forth in the  last  sentence  of  Section
10.13(b) (overtime payment) shall survive without termination. Any furnishing of
information  by any party to another  pursuant to, or  otherwise  in  connection
with, this Agreement,  including,  without limitation, any information contained
in any  document,  contract,  book or  record of the  delivering  party to which
another  party  shall  have  access  or any  information  obtained  by,  or made
available to, any party as a result of any investigation made by or on behalf of
such party prior to or after the date of this  Agreement,  shall not affect such
party's  right to rely on any  representation,  warranty,  covenant or agreement
made or deemed made by another party in this Agreement and shall not be deemed a
waiver thereof.

                                       54
<PAGE>

      15.5 Exclusivity of Indemnification  Provisions.  The parties  acknowledge
and agree that the purpose of the representations and warranties,  and covenants
and obligations in this Agreement is to give the aggrieved party the right to be
indemnified pursuant to this Section 15.5.  Accordingly,  the parties agree that
breaches of such representations and warranties will not be deemed to constitute
fraud  or  misrepresentation  under  state or  federal  law.  Additionally,  the
following  limitations  will  apply  other  than in the case of fraud or willful
misconduct:

            THE INDEMNIFICATION PROVISIONS AS PROVIDED IN THIS AGREEMENT WILL BE
      THE  SOLE  AND  EXCLUSIVE  REMEDY  AND  RECOURSE  FOR ANY  BREACH  OF THIS
      AGREEMENT  BY THE  COMPANY OR THE  SHAREHOLDERS  OR ANY OTHER CLAIM BY THE
      BUYER UNDER OR WITH RESPECT TO THIS  AGREEMENT OR ANY OF THE  TRANSACTIONS
      AND THE BUYER AND  MERGER  SUB WILL HAVE NO OTHER  ENTITLEMENT,  REMEDY OR
      RECOURSE,   WHETHER  IN   CONTRACT,   TORT  OR   OTHERWISE,   AGAINST  THE
      SHAREHOLDERS,  OR THEIR RESPECTIVE  AFFILIATES OR REPRESENTATIVES UNDER OR
      WITH RESPECT TO THIS  AGREEMENT,  ALL OF SUCH  ENTITLEMENTS,  REMEDIES AND
      RECOURSE BEING HEREBY  EXPRESSLY WAIVED BY THE BUYER AND MERGER SUB TO THE
      FULLEST EXTENT  PERMITTED BY APPLICABLE LEGAL  REQUIREMENTS.  IN ADDITION,
      THE AMOUNT OF THE CAPS APPLICABLE TO THE SHAREHOLDERS SET FORTH IN SECTION
      15.1 WILL BE THE MAXIMUM AMOUNT OF THE INDEMNIFICATION  OBLIGATIONS OF THE
      SHAREHOLDERS HEREUNDER,  AND NEITHER THE SHAREHOLDERS NOR THEIR RESPECTIVE
      AFFILIATES  OR  REPRESENTATIVES   WILL  HAVE  FURTHER  PERSONAL  OR  OTHER
      LIABILITY   THEREFOR.   TO  THE  EXTENT   PERMITTED  BY  APPLICABLE  LEGAL
      REQUIREMENTS, THE BUYER AND MERGER SUB WILL NOT BE ENTITLED TO ANY FURTHER
      INDEMNIFICATION  RIGHTS OR CLAIMS OF ANY NATURE WHATSOEVER HEREUNDER,  ALL
      OF WHICH THE BUYER AND  MERGER  SUB HEREBY  WAIVES TO THE  FULLEST  EXTENT
      PERMITTED BY APPLICABLE LEGAL REQUIREMENTS.

            THE INDEMNIFICATION  PROVIDED IN THIS AGREEMENT WILL BE THE SOLE AND
      EXCLUSIVE  REMEDY AND  RECOURSE  FOR ANY BREACH OF THIS  AGREEMENT  BY THE
      BUYER OR MERGER SUB OR ANY OTHER CLAIM BY THE  SHAREHOLDERS  UNDER OR WITH
      RESPECT TO THIS AGREEMENT OR ANY OF THE  TRANSACTIONS AND THE SHAREHOLDERS
      WILL HAVE NO OTHER ENTITLEMENT,  REMEDY OR RECOURSE,  WHETHER IN CONTRACT,
      TORT OR OTHERWISE, AGAINST THE SURVIVING CORPORATION,  BUYER OR MERGER SUB
      OR THEIR RESPECTIVE AFFILIATES OR REPRESENTATIVES UNDER OR WITH RESPECT TO
      THIS  AGREEMENT,  ALL OF SUCH  ENTITLEMENTS,  REMEDIES AND RECOURSE  BEING
      EXPRESSLY  WAIVED BY THE  SHAREHOLDERS TO THE FULLEST EXTENT  PERMITTED BY
      APPLICABLE LEGAL REQUIREMENTS. TO THE EXTENT PERMITTED BY APPLICABLE LEGAL
      REQUIREMENTS,  THE  SHAREHOLDERS  WILL  NOT BE  ENTITLED  TO  ANY  FURTHER
      INDEMNIFICATION  RIGHTS OR CLAIMS OF ANY NATURE WHATSOEVER HEREUNDER,  ALL
      OF WHICH THE SHAREHOLDERS  HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY
      APPLICABLE LEGAL REQUIREMENTS.

                                       55
<PAGE>

16.   Miscellaneous.

      16.1 Notices. All notices and other  communications  hereunder shall be in
writing  and shall be deemed to have been duly  given if  delivered  personally,
mailed  by  certified  mail  (return  receipt  requested)  or sent by  overnight
delivery  service,  telegram,  or facsimile  transmission  to the parties at the
following  addresses  or at such other  addresses  as shall be  specified by the
parties by like notice:

            (a) if to Terra

                  Terra Networks Asociadas, S.L.
                  Via De Las Dos Castillas
                  33 Complejo Atica
                  Edificio 1
                  Pozuelo De Alarcon
                  28223 Madrid Spain
                  Attn.:  General Counsel
                  Telephone: (34) 91-452-3000
                  Facsimile:  (34) 91-452-3042

            (b) if to Amadeus:

                  Amadeus Americas, Inc.
                  9250 NW 36th Street
                  Miami, Florida 33178
                  Attn: General Counsel
                  Telephone: (305) 499-6500
                  Facsimile: (305) 499-6939

             (c) if to the Company prior to the Closing,

                  OneTravel, Inc.
                  258 Main Street, Third Floor
                  East Greenville, Pennsylvania 18041
                  Attn: Philip Ferri, Chief Executive Officer
                  Telephone: (215) 541-1030
                  Facsimile: (215) 541-9098

                                       56
<PAGE>

                  with a copy to:

                  Haynes and Boone, L.L.P.
                  One Houston Center
                  1221 McKinney, Suite 2100
                  Houston, Texas 77010
                  Attn.: Bryce D. Linsenmayer, Esq.
                  Telephone: (713) 547-2007
                  Facsimile: (713) 547-2300

            (d) if to the Shareholder Representative after the Closing:

                  Joanna Franyie Romano, Esq.
                  General Counsel
                  Terra Networks USA
                  1201 Brickell Avenue, Suite 700
                  Miami, Florida
                  Telephone: (305) 714-8555
                  Facsimile: (305) 714-8713

             (e) if to the Surviving Corporation, Buyer or Merger Sub:

                  RCG Companies Incorporated
                  6836 Morrison Blvd.
                  Suite 220
                  Charlotte, North Carolina 28211
                  Attn.: Executive Vice President
                  Telephone: (704) 366-5054
                  Facsimile: (704) 366-5056

                                       57
<PAGE>

                  with a copy to:

                  Katten Muchin Zavis Rosenman
                  525 W. Monroe
                  Chicago, Illinois 60661-3693
                  Attn.: Matthew S. Brown, Esq.
                  Telephone: (312) 902-5207
                  Facsimile: (312) 218-7869

            (f) if to Avanti:

                  Avanti Management, Inc.
                  2000 Miller Road
                  Spinnerstown, Pennsylvania 18968
                  Telephone: (215) 853-2514
                  Facsimile: (484) 229-0277

Notice so given shall,  in the case of notice so given by mail,  be deemed to be
given three (3) business  days after the date  mailed,  in the case of notice so
given by overnight delivery service, on the date of actual delivery, in the case
of notice so given by telegram,  facsimile  transmission,  on the date of actual
transmission  if such  transmission  occurs  during normal  business  hours on a
business day or, if  transmission  does not so occur,  on the next business day,
or, in the case of personal delivery, on the date of such delivery.

      16.2 Severability.  If any provision of this Agreement shall be held to be
illegal,   invalid  or  unenforceable   under  any  applicable  law,  then  such
contravention  or invalidity  shall not  invalidate the entire  Agreement.  Such
provision  shall be deemed to be modified to the extent  necessary  to render it
legal, valid and enforceable, and if no such modification shall render it legal,
valid  and  enforceable,  then  this  Agreement  shall  be  construed  as if not
containing the provision held to be invalid,  and the rights and  obligations of
the parties shall be construed and enforced accordingly.

      16.3 Parties in Interest.  All the terms and  provisions of this Agreement
shall be  binding  upon and inure to the  benefit of and be  enforceable  by the
respective  successors and assigns of the parties  hereto.  This Agreement shall
not run to the benefit of or be  enforceable by any Person other than a party to
this Agreement or their successors and assigns.

      16.4 CHOICE OF LAW. THIS  AGREEMENT  WILL BE GOVERNED BY THE INTERNAL LAW,
AND NOT THE LAW OF CONFLICTS, OF THE STATE OF DELAWARE.

      16.5 Counterparts;  Delivery by Facsimile.  This Agreement may be executed
in any  number of  counterparts  and by  different  parties  hereto in  separate
counterparts,  with  the same  effect  as if all  parties  had  signed  the same
document. All such counterparts shall be deemed an original,  shall be construed
together and shall  constitute one and the same  instrument.  This Agreement and
each other  agreement  or  instrument  entered  into in  connection  herewith or
contemplated  hereby, and any amendments hereto or thereto, to the extent signed
and  delivered by means of a facsimile  machine,  shall be treated in all manner
and  respects and for all purposes as an original  agreement or  instrument  and
shall be  considered  to have the same  binding  legal  effect as if it were the
original signed version thereof delivered in person. At the request of any party
hereto or to any such  agreement  or  instrument,  each  other  party  hereto or
thereto shall  re-execute  original  forms thereof and deliver them to all other
parties.  No party hereto or to any such agreement or instrument shall raise the
use of a facsimile machine to deliver a signature or the fact that any signature
or agreement or instrument was transmitted or communicated  through the use of a
facsimile  machine as a defense to the formation or enforceability of a contract
and each such party forever waives any such defense.

      16.6 Complete Agreement. This Agreement, the Disclosure Schedule and those
documents expressly referred to herein and other documents of even date herewith
embody the complete agreement and understanding  among the parties and supersede
and  preempt  any  prior  understandings,  agreements,  letters  of  intent,  or

                                       58
<PAGE>

representations by or among the parties, written or oral, which may have related
to  the  subject  matter  hereof  in any  way.  The  parties  intend  that  each
representation,  warranty,  and covenant  contained in this Agreement shall have
independent  significance.   If  any  party  has  breached  any  representation,
warranty,  or covenant contained in this Agreement 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.  The
headings of Sections in this  Agreement  are provided for  convenience  only and
will not affect its construction or interpretation.  All references to "Section"
or "Sections" refer to the corresponding  Section or Sections of this Agreement.
All words  used in this  Agreement  will be  construed  to be of such  gender or
number as the circumstances require.

      16.7 Waiver of Jury Trial.  Each of the parties hereto hereby  irrevocably
waives any and all right to trial by jury of any claim or cause of action in any
legal proceeding arising out of or related to this Agreement or the transactions
or events  contemplated  hereby or any  course of  conduct,  course of  dealing,
statements  (whether  verbal or  written)  or actions of any party  hereto.  The
parties  each agree that any and all such  claims and causes of action  shall be
tried by the court without a jury.  Each of the parties further waives any right
to seek to consolidate any such legal  proceeding in which a jury trial has been
waived with any other legal  proceeding  in which a jury trial cannot or has not
been waived.

      16.8 Further  Assurances.  Each party covenants that at any time, and from
time to time, after the Closing it will execute such additional  instruments and
take such actions as may be reasonably requested by the other parties to confirm
or perfect or otherwise further carry out the intent, agreements and purposes of
this Agreement.

      16.9 Assignment. No party shall assign this Agreement or their obligations
hereunder without the prior written consent of the other parties hereto.

      16.10 Waiver. The rights and remedies of the parties to this Agreement are
cumulative and not  alternative.  Neither the failure nor any delay by any party
in  exercising  any right,  power,  or  privilege  under this  Agreement  or the
documents  referred to in this Agreement will operate as a waiver of such right,
power, or privilege and no single or partial exercise of any such right,  power,
or privilege will preclude any other further  exercise of such right,  power, or
privilege  or the  exercise of any other  right,  power,  or  privilege.  To the
maximum extent permitted by applicable law, (a) no claim or right arising out of
this Agreement or the documents  referred to in this Agreement can be discharged
by one party,  in whole or in part, by a waiver or  renunciation of the claim or
right  unless in writing  signed by the other  party;  (b) no waiver that may be
given by a party will be applicable except in the specific instance for which it
is given;  and (c) no  notice  to or demand on one party  will be deemed to be a
waiver of any  obligation of such party or of the right of the party giving such
notice or demand to take further  action without notice or demand as provided in
this Agreement or the documents referred to in this Agreement.

      16.11  Consent  to  Specific  Performance.  Each  party  hereto  therefore
consents  to an  order  of  specific  performance  with  respect  to  any of its
obligations hereunder.  Any party against whom an order for specific performance
is sought hereby  waives any claim or defense  therein that the moving party has
an  adequate  remedy at law or that money  damages  would  provide  an  adequate
remedy. It shall,  however, be the election of the moving party as to whether or
not to seek specific performance.

                                       59
<PAGE>

      16.12  Appointment  of Shareholder  Representative.  Each holder of Shares
shall,  by  virtue  of such  holder's  execution  and  delivery  of a Letter  of
Transmittal,  be deemed to constitute and appoint Joanna  Franyie  Romano,  with
full power of substitution and resubstitution,  for him/her and in his/her name,
place and stead, or, in the case of his/her death or incapacity, any replacement
representative  appointed  in  writing  by those  holders  of Shares  who held a
majority of outstanding Shares (on a fully diluted basis) immediately  preceding
the Closing and their respective heirs, successors and assigns (the "Shareholder
Representative")  to act as the  representative  of any and all of such  holders
with respect to any matter arising in connection with this Agreement and to make
on behalf of any or all holders,  individually and  collectively,  any decisions
and take all  actions  that they  would be  entitled  to make  pursuant  to this
Agreement (but for the appointment of the Shareholder  Representative) including
any decision or action that may  prejudice  the rights of any holder or may have
an adverse  effect with respect to any holder.  The  Shareholder  Representative
shall be  considered a nominee and agent of the holders of Shares.  Any decision
or action of the Shareholder Representative made on behalf of any or all holders
of Shares shall be binding on such holders, their heirs, successors and assigns.
The Buyer and Merger Sub shall,  with  respect to any  decision or action by the
Shareholder  Representative,  be  entitled  to rely  upon  any  written  notice,
instruction,  certificate  or request of the  Shareholder  Representative.  Each
holder of Shares, by virtue of such holder's  execution and delivery of a Letter
of  Transmittal,  agrees  severally,  but not  jointly,  to  indemnify  and hold
harmless  the  Shareholder  Representative  from and  against  all  obligations,
liabilities,  claims,  costs,  fees,  expenses  (including costs and expenses of
counsel)  owed  or due to any  third  party  (including  any  other  holder)  of
whatsoever nature and kind arising out of, associated with or resulting from the
exercise by the  Shareholder  Representative,  or the failure to exercise by the
Shareholder   Representative,   of  his/her   powers  and  the   performance  or
non-performance  of his/her duties hereunder,  provided that the foregoing shall
be  inapplicable  in any case of gross  negligence or willful  misconduct on the
part of the Shareholder Representative. The Shareholder Representative shall not
be liable to the  holders  for any action  taken or  omitted by the  Shareholder
Representative  in good faith under this Agreement,  except for gross negligence
or willful misconduct.

      16.13 Jurisdiction;  Service of Process.  Any action or Proceeding seeking
to  enforce  any  provision  of,  or based on any  right  arising  out of,  this
Agreement  may be brought  against any of the parties in the courts of the State
of Florida, County of Miami-Dade, or, if it has or can acquire jurisdiction,  in
the United States District Court for the Southern District of Florida,  and each
of  the  parties  consents  to the  jurisdiction  of  such  courts  (and  of the
appropriate  appellate  courts) in any such action or proceeding  and waives any
objection to venue laid therein.

                            [Signature page follows]

                                       60
<PAGE>

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

COMPANY                                        BUYER

ONETRAVEL, INC.                                RCG COMPANIES INCORPORATED

By:  \s\ Philip A. Ferri                       By: \s\ William A. Goldstein
     -------------------------                     ------------------------
Name: Philip A. Ferri                          Name: William A. Goldstein
Title: President                               Title: Chairman

SHAREHOLDERS                                   MERGER SUB

TERRA NETWORKS ASOCIADAS, S.L.                 OT ACQUISITION CORPORATION

By: /s/ Juan Rovira
   ---------------------------
Name: Juan Rovira                              By: \s\ William A. Goldstein
     -------------------------                     ------------------------
Title: Director                                Name: William A. Goldstein
      ------------------------
                                               Title: Chairman

AMADEUS AMERICAS, INC. f/k/a AMADEUS
NMC HOLDING, INC.

                                               SHAREHOLDER REPRESENTATIVE
By:  \s\ Edna Wehby Lopez
     -------------------------
Name: Edna Wehby Lopez
Title: President                               \s\ Joanna Franyie Romano
                                               ----------------------------
                                               JOANNA FRANYIE ROMANO
AVANTI MANAGEMENT, INC.

By: \s\ Michael Thomas
    --------------------------
Name: Michael Thomas
Title: CEO and President

                                       61REGISTRATION RIGHTS AGREEMENT

         This  Registration  Rights  Agreement  (this  "AGREEMENT")  is made and
entered into as of April 15, 2005,  by and among RCG Companies  Incorporated,  a
Delaware corporation (the "COMPANY");  Amadeus Americas,  Inc. f/k/a Amadeus NMC
Holding,  Inc., a Delaware  corporation  ("AMADEUS");  Terra Networks Asociadas,
S.L., a company  organized  and existing  under the laws of the Kingdom of Spain
("TERRA");  Avanti Management,  Inc., a Pennsylvania corporation ("AVANTI"); and
Libra Securities,  LLC, a Delaware limited liability company ("LIBRA SECURITIES"
and together with Amadeus, Terra and Avanti are each individually referred to as
a "HOLDER" and  collectively as the "HOLDERS").  This Agreement is made pursuant
to the Agreement and Plan of Merger,  dated  February 10, 2005, by and among the
Company,  OneTravel,  Inc., a Texas corporation,  Amadeus,  Terra, Avanti and OT
Acquisition Corporation, a Texas corporation (the "MERGER AGREEMENT").

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

         (a)  "CONVERTIBLE  PROMISSORY  NOTES" means those  certain  Convertible
Promissory  Notes  issued by the  Company to  Amadeus,  Terra,  Avanti and Libra
Securities pursuant to the Merger Agreement.

         (b)  "EXCHANGE  ACT"  means the  Securities  Exchange  Act of 1934,  as
amended, and the rules and regulations promulgated thereunder.

         (c) "HOLDER" or "HOLDERS" means the holder or holders,  as the case may
be,  from  time to time of  Registrable  Securities.  The  initial  Holders  are
Amadeus, Terra, Avanti and Libra Securities.

         (d)  "PROCEEDING"  means  an  action,  claim,  suit,  investigation  or
proceeding   (including,   without  limitation,   an  investigation  or  partial
proceeding, such as a deposition), whether commenced or threatened.

         (e)  "PROSPECTUS"  means  the  prospectus  included  in a  Registration
Statement  (including,  without  limitation,  a  prospectus  that  includes  any
information  previously  omitted from a prospectus filed as part of an effective
registration  statement  in  reliance  upon  Rule  430A  promulgated  under  the
Securities Act), as amended or supplemented by any prospectus  supplement,  with
respect  to  the  terms  of  the  offering  of any  portion  of the  Registrable
Securities  covered by a Registration  Statement,  and all other  amendments and
supplements to the  Prospectus,  including  post-effective  amendments,  and all
material  incorporated by reference or deemed to be incorporated by reference in
such Prospectus.

         (f) "REGISTRABLE  SECURITIES"  means, as of the Filing Date, all of the
Conversion Shares, as such term is defined in the Convertible Promissory Notes.

         (g) "REGISTRATION  STATEMENT" means the registration statement required
to be filed hereunder,  including the Prospectus,  amendments and supplements to
such  registration  statement or Prospectus,  including pre- and  post-effective
amendments,  all exhibits thereto, and all material incorporated by reference or
deemed to be incorporated by reference in such registration statement.

<PAGE>

         (h) "SECURITIES ACT" means the Securities Act of 1933, as amended,  and
the rules and regulations promulgated thereunder.

2. Required Registration. As soon as practicable, but in no event later than the
90th day,  following  the date hereof (the  "FILING  DATE"),  the Company  shall
prepare and file with the  Commission  a  Registration  Statement  covering  the
resale of 100% of the Registrable  Securities.  The Registration Statement shall
be on Form S-3 (unless the Company is not then  eligible to register  for resale
the Registrable Securities on Form S-3, in which case such registration shall be
on another  appropriate  form in accordance  herewith) and shall contain (unless
otherwise  directed by the  Holders)  substantially  the "PLAN OF  DISTRIBUTION"
attached hereto as Annex A. Subject to the terms of this Agreement,  the Company
shall use its reasonable commercial efforts to cause the Registration  Statement
to be declared  effective under the Securities Act as promptly as possible after
the filing  thereof,  but in any event prior to the 120th calendar day following
the date hereof or the 180th  calendar day following the date hereof in the case
of a review by the Commission.  The Company shall promptly notify the Holders of
the effectiveness of the Registration Statement and any post-effective amendment
thereto once the Company receives  notification of such  effectiveness  from the
Commission.

3. Registration Procedures.

         In connection with the Company's  registration  obligations  hereunder,
the Company shall:

         (a) use its reasonable  commercial efforts to prepare and file with the
Commission such amendments and supplements to the Registration Statement and the
Prospectus  included  therein as may be  necessary  to effect and  maintain  the
effectiveness  of  such  Registration  Statement  as  may  be  required  by  the
applicable  rules  and  regulations  of  the  Commission  and  the  instructions
applicable to the form of such Registration  Statement (provided,  however, that
the  Company  shall  not be  obliged  to  maintain  the  effectiveness  of  such
Registration  Statement  longer  than  through  the  earlier  of (i) the  second
anniversary of the date hereof,  (ii) the date on which the Holders may sell all
Registrable  Securities  held  by the  Holders  without  regard  to  any  volume
limitation  pursuant to Rule 144(k) of the  Securities Act or (iii) such time as
all  Registrable  Securities  held by the Holders have been sold pursuant to the
Registration Statement or Rule 144 under the Securities Act or any other rule of
similar effect);

         (b) promptly deliver to each Holder,  without charge, as many copies of
the  Prospectus  and each  amendment  or  supplement  thereto as such Holder may
reasonably  request in  connection  with  resales  by the Holder of  Registrable
Securities.  Subject to the terms of this Agreement, the Company hereby consents
to the use of such  Prospectus and each amendment or supplement  thereto by each
of the  selling  Holders  in  connection  with  the  offering  and  sale  of the
Registrable   Securities  covered  by  such  Prospectus  and  any  amendment  or
supplement  thereto,  except after the giving of any notice  pursuant to Section
3(c);

         (c) notify the  Holders of  Registrable  Securities  to be sold  (which
notice shall, pursuant to clauses (ii) through (vi) hereof, be accompanied by an
instruction  to suspend the use of the  Prospectus  until the requisite  changes
have been made) as promptly as reasonably possible,  (i)(A) when a Prospectus or

                                       2
<PAGE>

any  Prospectus  supplement  or  post-effective   amendment  to  a  Registration
Statement  is  proposed  to be filed  and (B)  with  respect  to a  Registration
Statement or any post-effective  amendment,  when the same has become effective;
(ii) of any request by the Commission or any other Federal or state governmental
authority  for  amendments  or  supplements  to  a  Registration   Statement  or
Prospectus  or  for  additional  information;  (iii)  of  the  issuance  by  the
Commission  or any other  federal or state  governmental  authority  of any stop
order suspending the effectiveness of a Registration  Statement  covering any or
all of the Registrable  Securities or the initiation of any Proceedings for that
purpose;  (iv) of the receipt by the Company of any notification with respect to
the suspension of the  qualification  or exemption from  qualification of any of
the Registrable  Securities for sale in any  jurisdiction,  or the initiation or
threatening  of any  Proceeding  for such purpose;  (v) of the occurrence of any
event or passage  of time that  makes the  financial  statements  included  in a
Registration Statement ineligible for inclusion therein or any statement made in
a Registration Statement or Prospectus or any document incorporated or deemed to
be  incorporated  therein by reference  untrue in any  material  respect or that
requires  any  revisions  to  a  Registration  Statement,  Prospectus  or  other
documents so that, in the case of a Registration Statement or the Prospectus, as
the case may be, it will not contain any untrue  statement of a material fact or
omit to state any material  fact  required to be stated  therein or necessary to
make the statements therein, in light of the circumstances under which they were
made,  not  misleading;  and (vi) the  occurrence  or  existence  of any pending
corporate  development with respect to the Company that the Company believes may
be material and that, in the  determination of the Company,  makes it not in the
best interest of the Company to allow continued availability of the Registration
Statement or  Prospectus;  provided that any and all of such  information  shall
remain confidential to each Holder unless (I) the release of such information is
ordered pursuant to a subpoena or other final, non-appealable order from a court
or governmental  body of competent  jurisdiction,  or (II) such  information has
been  made  generally  available  to the  public  other  than by  disclosure  in
violation of this Agreement or any other agreement.

         (d) use its commercially  reasonable  efforts to register or qualify or
cooperate  with the  selling  Holders in  connection  with the  registration  or
qualification  (or exemption from the  registration  or  qualification)  of such
Registrable Securities for the resale by the Holder under the securities or Blue
Sky laws of such jurisdictions within the United States as any Holder reasonably
requests  in  writing,  and to  keep  each  registration  or  qualification  (or
exemption therefrom) effective during the Effectiveness Period;  provided,  that
the Company  shall not be required  to qualify  generally  to do business in any
jurisdiction  where it is not then so  qualified,  subject  the  Company  to any
material tax in any such jurisdiction  where it is not then so subject or file a
general consent to service of process in any such jurisdiction; and

         (e) file  all  documents  required  to be  filed  with  the  Commission
pursuant to Section  13, 14 or 15 of the  Exchange  Act within the time  periods
required  by  the  Exchange  Act  and  the  rules  and  regulations  promulgated
thereunder.

         (f) The  Company  may  require  each  selling  Holder to furnish to the
Company  such  information  regarding  such Holder and such  Holder's  method of
distribution  of  Registrable  Securities  as the  Company  from  time  to  time
reasonably requests in writing. Each such Holder agrees to notify the Company as
promptly as practicable  of any  inaccuracy or change in information  previously
furnished  by such  Holder to the Company or of the  occurrence  of any event in
either case as a result of which any  Prospectus  relating to such  registration
contains or would contain an untrue  statement of a material fact regarding such

                                       3
<PAGE>

Holder or the distribution of such Registrable  Securities or omits to state any
material fact  regarding  such Holder or the  distribution  of such  Registrable
Securities  required to be stated  therein or necessary  to make the  statements
therein not misleading in light of the circumstances then existing, and promptly
to furnish to the Company  any  additional  information  required to correct and
update any previously furnished  information or required so that such prospectus
shall not  contain,  with  respect to such  Holder or the  distribution  of such
Registrable Securities,  an untrue statement of a material fact or omit to state
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements  therein not misleading in light of the circumstances  then existing.
The Company shall hold in confidence  and not make any disclosure of information
concerning a Holder of Registrable Securities provided to the Company unless (i)
disclosure  of such  information  is  necessary  to comply with federal or state
securities  laws, (ii) the disclosure of such  information is necessary to avoid
or correct a misstatement or omission in any Registration  Statement,  (iii) the
release of such  information  is ordered  pursuant to a subpoena or other final,
non-appealable   order  from  a  court  or   governmental   body  of   competent
jurisdiction,  or (iv) such information has been made generally available to the
public other than by  disclosure  in  violation  of this  Agreement or any other
agreement. During any periods that the Company is unable to meet its obligations
hereunder with respect to the registration of the Registrable Securities because
any Holder fails to furnish such information  pursuant to the Company's request,
any failure by the Company to comply  hereunder that may occur solely because of
such delay shall be excused until such information is delivered to the Company.

         (g)  Each  of the  Holders  will  comply  with  the  provisions  of the
Securities Act with respect to disposition of the  Registrable  Securities to be
included in any Registration Statement filed by the Company.

4.  Registration  Expenses.  All  fees  and  expenses  in  connection  with  the
performance  of this  Agreement  by the Company  shall be borne by the  Company;
provided,  however,  that in no event shall the Company be  responsible  for the
fees,  costs and  expenses  of  counsel  for any  Holder,  any broker or similar
commissions or any transfer taxes relating to the Registrable Securities sold by
the Holders.

5. Transfer of Registrable  Securities after  Registration.  Each of the Holders
agrees that it will not effect any  disposition  of the  Registrable  Securities
that would constitute a sale within the meaning of the Securities Act, except as
contemplated in the Registration Statement or as otherwise permitted by law.

6. Indemnification.

         (a)  Indemnification by the Company.  Subject to the provisions of this
Section 6, the Company  agrees to indemnify and hold  harmless the Holders,  the
Holders' respective officers, directors,  trustees, partners, members, employees
and agents,  and each person,  if any,  who controls or is under common  control
with any of the  Holders  within the  meaning  of the  Securities  Act (each,  a
"HOLDER  INDEMNITEE"),  against  any losses,  claims,  damages,  liabilities  or
expenses, joint or several, to which such Holder Indemnitees may become subject,
under the  Securities  Act,  the  Exchange  Act,  or any other  federal or state
statutory  law or  regulation,  or at  common  law or  otherwise  (including  in
settlement of any  litigation,  if such  settlement is effected with the written

                                       4
<PAGE>

consent of the Company), insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof as  contemplated  below) arise out of or
are based upon any untrue  statement or alleged untrue statement of any material
fact  contained or  incorporated  by reference  in the  Registration  Statement,
including financial statements and schedules, and all other documents filed as a
part thereof,  including any  information  deemed to be a part thereof as of the
time of  effectiveness  pursuant to paragraph  (b) of Rule 430A,  or pursuant to
Rule 434, under the Securities Act, or in the Prospectus related thereto, in the
form  first  filed  with  the  Commission  pursuant  to Rule  424(b)  under  the
Securities  Act or filed as part of the  Registration  Statement  at the time of
effectiveness  if no  Rule  424(b)  filing  is  required,  or any  amendment  or
supplement to the Registration  Statement or Prospectus,  or arise out of or are
based upon the  omission or alleged  omission to state in any of them a material
fact required to be stated therein or necessary to make the statements in any of
them, in light of the circumstances  under which they were made, not misleading,
and will reimburse the Holder Indemnitee for reasonable legal and other expenses
as such expenses are incurred by such Holder Indemnitee or controlling person in
connection with investigating,  defending, settling,  compromising or paying any
such loss, claim, damage, liability,  expense or action; provided, however, that
the Company  will not be liable in any such case to a Holder  Indemnitee  to the
extent that any such loss, claim, damage,  liability or expense arises out of or
is based upon (i) an untrue statement or alleged untrue statement or omission or
alleged  omission  made in the  Registration  Statement,  the  Prospectus or any
amendment or supplement  thereto in reliance upon and in conformity with written
information  furnished to the Company by or on behalf of a Holder  expressly for
use in the Registration Statement, the Prospectus or any amendment or supplement
thereto,  or (ii) the  failure  of the  applicable  Holder  to  comply  with the
covenants and agreements contained in this Agreement regarding the resale of the
Registrable Securities,  or (iii) any untrue statement or omission of a material
fact required to make such statement not  misleading in any  Prospectus  that is
corrected in any subsequent  Prospectus or supplement thereto that was delivered
to the applicable  Holder a reasonable  amount of time before the pertinent sale
or sales by such  Holder or (iv) a direct  claim  against  the  Company  by such
Holder  Indemnitee  if such Holder  Indemnitee  is a person that is under common
control with any Holder (as opposed to a  third-party  claim against such Holder
Indemnitee).

         (b)  Indemnification by the Holders.  Subject to the provisions of this
Section 6, each Holder  will,  severally  and not  jointly,  indemnify  and hold
harmless the Company, each of its directors, each of its officers who signed the
Registration  Statement and each person, if any, who controls the Company within
the  meaning  of the  Securities  Act,  against  any  losses,  claims,  damages,
liabilities or expenses to which the Company, each of its directors, each of its
officers who signed the Registration  Statement or controlling person may become
subject,  under the  Securities  Act, the Exchange  Act, or any other federal or
state statutory law or regulation,  or at common law or otherwise  (including in
settlement of any  litigation,  if such  settlement is effected with the written
consent of such Holder), insofar as such losses, claims, damages, liabilities or
expenses (or actions in respect thereof as  contemplated  below) arise out of or
are based  upon (i) any  failure on the part of such  Holder to comply  with the
covenants and agreements contained in this Agreement regarding the resale of the
Registrable  Securities  or (ii) any untrue or alleged  untrue  statement of any
material fact contained in the Registration  Statement,  the Prospectus,  or any
amendment or supplement  thereto, or arise out of or are based upon the omission
or alleged  omission  to state  therein a material  fact  required  to be stated
therein or necessary to make the statements therein not misleading, in each case

                                       5
<PAGE>

to the extent,  but only to the extent,  that such untrue  statement  or alleged
untrue  statement or omission or alleged  omission was made in the  Registration
Statement,  the Prospectus,  or any amendment or supplement thereto, in reliance
upon and in conformity with written  information  furnished to the Company by or
on  behalf  of such  Holder  expressly  for use  therein  and such  Holder  will
reimburse the Company,  each of its  directors,  each of its officers who signed
the Registration  Statement and each controlling person for reasonable legal and
other  expenses  as such  expenses  are  incurred  by the  Company,  each of its
directors,  each of its officers who signed the Registration  Statement and each
controlling  person  in  connection  with  investigating,  defending,  settling,
compromising  or paying  any such loss,  claim,  damage,  liability,  expense or
action;  provided,  however,  that the  Holder  shall not be liable for any such
untrue or alleged untrue  statement or omission or alleged omission of which the
Holder has  delivered  to the  Company in writing a  correction  of such  untrue
statement or omission of a material fact a reasonable  amount of time before the
occurrence  of the  transaction  from or upon which such  loss,  claim,  damage,
liability or expense arose or was based.

         (c) Indemnification Procedures.

                  (i) Promptly after receipt by an indemnified  party under this
Section  6 of  notice  of  the  threat  or  commencement  of  any  action,  such
indemnified  party will, if a claim in respect  thereof is to be made against an
indemnifying  party under this Section 6, promptly notify the indemnifying party
in writing of the claim;  but the omission so to notify the  indemnifying  party
will not  relieve  it from any  liability  which it may have to any  indemnified
party for contribution or otherwise under the indemnity  agreement  contained in
this Section 6 to the extent it is not prejudiced as a result of such failure.

                  (ii)  In  case  any  such   action  is  brought   against  any
indemnified  party and such indemnified party seeks or intends to seek indemnity
from  an  indemnifying  party,  the  indemnifying  party  will  be  entitled  to
participate  in,  and, to the extent  that it may wish,  jointly  with all other
indemnifying  parties  similarly  notified,  to assume the defense  thereof with
counsel reasonably satisfactory to such indemnified party; provided, however, if
the  defendants in any such action  include both the  indemnified  party and the
indemnifying  party and the indemnified  party shall have  reasonably  concluded
that there may be a conflict between the positions of the indemnifying party and
the indemnified party in conducting the defense of any such action or that there
may be legal  defenses  available  to it or other  indemnified  parties that are
different from or additional to those available to the  indemnifying  party, the
indemnified  party or parties shall have the right to select separate counsel to
assume such legal  defenses and to otherwise  participate in the defense of such
action on behalf of such  indemnified  party or parties.  Upon receipt of notice
from the  indemnifying  party to such  indemnified  party of its  election so to
assume the  defense of such  action and  approval  by the  indemnified  party of
counsel,  which approval shall not be unreasonably  withheld,  the  indemnifying
party will not be liable to such indemnified  party under this Section 6 for any
legal or other  expenses  subsequently  incurred  by such  indemnified  party in
connection with the defense thereof unless:

                           (A) the  indemnified  party shall have  employed such
counsel in connection  with the assumption of legal defenses in accordance  with
the proviso to the preceding  sentence (it being understood,  however,  that the
indemnifying  party  shall  not be  liable  for the  expenses  of more  than one
separate counsel,  approved by such indemnifying  party  representing all of the
indemnified parties who are parties to such action), or

                                       6
<PAGE>

                           (B) the  indemnifying  party shall not have  employed
counsel  reasonably  satisfactory  to the  indemnified  party to  represent  the
indemnified  party within a  reasonable  time after  notice of  commencement  of
action, in each of which cases the reasonable fees and expenses of counsel shall
be at the expense of the indemnifying party.

         (d) Contribution. If the indemnification provided for in this Section 6
is required by clause (i) of Section 6(a) or clause (iii) of Section 6(b) but is
for any reason  held to be  unavailable  to or  otherwise  insufficient  to hold
harmless an  indemnified  party  under this  Section 6 in respect to any losses,
claims,  damages,  liabilities or expenses  referred to in this Agreement,  then
each  applicable  indemnifying  party  shall  contribute  to the amount  paid or
payable by such indemnified  party as a result of any losses,  claims,  damages,
liabilities or expenses  referred to in this Agreement in such  proportion as is
appropriate  to reflect  the  relative  fault of the  Company and the Holders in
connection   with  the  statements  or  omissions,   the   inaccuracies  in  the
representations  and warranties in this Agreement or the breach of covenants and
agreements  in this  Agreement  that resulted in such losses,  claims,  damages,
liabilities or expenses, as well as any other relevant equitable considerations.
The  relative  fault of the  Company  and the  Holders  shall be  determined  by
reference to, among other things,  whether the untrue or alleged  statement of a
material  fact or the omission or alleged  omission to state a material  fact or
the inaccurate or the alleged  inaccurate  representation or warranty relates to
information  supplied by the Company or by such Holder and the parties' relative
intent,  knowledge,  access to information and opportunity to correct or prevent
such statement or omission. The amount paid or payable by a party as a result of
the losses, claims, damages, liabilities and expenses referred to above shall be
deemed to include,  subject to the  limitations  set forth in Section 6(e),  any
legal or other fees or expenses  reasonably incurred by such party in connection
with investigating or defending any action or claim. The provisions set forth in
Section  6(c) with  respect to the notice of the threat or  commencement  of any
threat or action  shall  apply if a claim for  contribution  is to be made under
this  Section  6(d);  provided,  however,  that no  additional  notice  shall be
required  with  respect to any threat or action for which  notice has been given
under  Section 6 for  purposes of  indemnification.  The Company and the Holders
agree that it would not be just and equitable if  contribution  pursuant to this
Section 6(d) were determined  solely by pro rata allocation (even if the Holders
were  treated  as one  entity  for  such  purpose)  or by any  other  method  of
allocation which does not take account of the equitable  considerations referred
to in this  paragraph.  Notwithstanding  the provisions of this Section 6(d), no
Holder  shall be  required to  contribute  any amount in excess of the amount by
which  the  total  proceeds  received  by it from  the  sale of the  Registrable
Securities exceeds the amount of any damages that such Holder has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission.  No person guilty of fraudulent  misrepresentation  (within
the  meaning of  Section  11(f) of the  Securities  Act)  shall be  entitled  to
contribution   from  any  person   who  was  not   guilty  of  such   fraudulent
misrepresentation.  The  Holders'  obligations  to  contribute  pursuant to this
Section 6(d) are several and not joint.

         (e) Limits on  Liability.  In no event  shall the  aggregate  liability
hereunder (i) of the Company  exceed the aggregate  Principal  Amounts of all of
the Convertible  Promissory  Notes; or (ii) of a Holder exceed (A) the aggregate
Principal Amount of the Convertible Promissory Note made in favor of such Holder
(or such  Holder's  successor(s)  or  assignor(s))  with  respect to the matters
described  in clause (i) of Section  6(b),  and (B) the gross  proceeds  to such
Holder  as a  result  of  the  sale  of  Registrable  Securities  pursuant  to a
Registration  Statement,  Prospectus or any amendment or supplement thereto with
respect to the matters described in clause (ii) of Section 6(b).

                                       7
<PAGE>

7.  Rule 144  Information.  Until  the  earlier  of (a) the  date on  which  the
Registrable  Securities may be resold by the Holders  without  registration  and
without  regard to any volume  limitations  by reason of Rule  144(k)  under the
Securities Act or any other rule of similar effect or (b) all of the Registrable
Securities  have been sold  pursuant to the  Registration  Statement or Rule 144
under the Securities Act or any other rule of similar effect,  the Company shall
file all reports  required to be filed by it under the Securities Act, the rules
and  regulations  promulgated  thereunder  and the Exchange Act so long as it is
subject to such  requirements and shall take such further  reasonable  action to
the extent  required  to enable the Holders to sell the  Registrable  Securities
pursuant to Rule 144 under the  Securities Act (as such rule may be amended from
time to time).

8. Notices.  Any notice  provided  pursuant to this Agreement  shall be given in
accordance with the notice provisions of the Merger  Agreement.  Notice to Libra
Securities shall be given to:

                  Libra Securities, LLC
                  630 Fifth Avenue
                  Suite 1919
                  New York, New York 10111
                  Attention: Frank Sena
                  Telephone: (212) 332-4150
                  Facsimile: (212) 322-4155

         With a copy to:

                  Libra Securities, LLC
                  11766 Wilshire Blvd., Suite 870
                  Los Angeles, California 90025
                  Attention: General Counsel
                  Telephone: (310) 312-5600
                  Facsimile: (310) 312-5640

9. Modification;  Amendment;  Termination. This Agreement may not be modified or
amended  except  pursuant to an instrument in writing  signed by the Company and
the Holders.

10. Entire  Agreement.  This  Agreement  and the  agreements  referenced  herein
supersede  all other prior oral or written  agreements  between the parties with
respect to the matters  discussed  herein and contains the entire  understanding
with respect to the matters covered herein.

11.  Headings.  The  headings of Sections in this  Agreement  are  provided  for
convenience  only and will not affect its  construction or  interpretation.  All
references  to "Section" or  "Sections"  refer to the  corresponding  Section or
Sections of this Agreement.

                                       8
<PAGE>

12.  Severability.  If any  provision  of  this  Agreement  shall  be held to be
illegal,   invalid  or  unenforceable   under  any  applicable  law,  then  such
contravention  or invalidity  shall not  invalidate the entire  Agreement.  Such
provision  shall be deemed to be modified to the extent  necessary  to render it
legal, valid and enforceable, and if no such modification shall render it legal,
valid  and  enforceable,  then  this  Agreement  shall  be  construed  as if not
containing the provision held to be invalid,  and the rights and  obligations of
the parties shall be construed and enforced accordingly.

13.  Governing  Law;  Jurisdiction.  This  Agreement  shall be  governed  by and
construed in  accordance  with the laws of the state of Delaware and the federal
law of the United States of America,  without giving effect to any choice of law
or conflict of law  provision  or rule that would cause the  application  of the
laws of any other jurisdiction.

14. Counterparts;  Delivery by Facsimile.  This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts,
with the same effect as if all parties  had signed the same  document.  All such
counterparts shall be deemed an original,  shall be construed together and shall
constitute one and the same instrument.  This Agreement and each other agreement
or instrument  entered into in connection  herewith or contemplated  hereby, and
any amendments hereto or thereto, to the extent signed and delivered by means of
a facsimile  machine,  shall be treated in all manner and  respects  and for all
purposes as an original  agreement or instrument and shall be considered to have
the same binding legal effect as if it were the original  signed version thereof
delivered in person. At the request of any party hereto or to any such agreement
or  instrument,  each other party hereto or thereto  shall  re-execute  original
forms thereof and deliver them to all other  parties.  No party hereto or to any
such  agreement  or  instrument  shall raise the use of a  facsimile  machine to
deliver a signature or the fact that any  signature  or agreement or  instrument
was  transmitted  or  communicated  through the use of a facsimile  machine as a
defense to the  formation  or  enforceability  of a contract and each such party
forever waives any such defense.

15.  Successors and Assigns.  This Agreement  shall be binding upon and inure to
the benefit of the parties and their respective successors and assigns; provided
that the Holders may not assign their rights or  obligations  hereunder  without
the consent of the Company.

16. No Third-Party Beneficiaries.  This Agreement is intended for the benefit of
the parties hereto and their respective  permitted successors and assigns and is
not for the benefit of, nor may any  provision  hereof be enforced by, any other
person.

                            [SIGNATURE PAGES FOLLOWS]

                                       9
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed  and  delivered  by  their  respective  duly  authorized   officers  or
representatives as of the date first written above.

                                    COMPANY:

                                    RCG COMPANIES INCORPORATED

                                    By:  \s\ Marc E. Bercoon
                                         -----------------------------
                                    Name:  Marc E. Bercoon
                                    Title:  Chief Financial Officer

                                       10
<PAGE>

                      HOLDERS:

                      TERRA NETWORKS ASOCIADAS, S.L.

                      By:  /s/ Juan Rovira
                         --------------------------------------------------
                      Name: Juan Rovira
                           ------------------------------------------------
                      Title: Director
                            -----------------------------------------------

                      AMADEUS AMERICAS, INC. F/K/A AMADEUS NMC HOLDING, INC.

                      By: /s/ Edna Wehby Lopez
                         --------------------------------------------------
                      Name: Edna Wehby Lopez
                           ------------------------------------------------
                      Title: President
                            -----------------------------------------------

                      AVANTI MANAGEMENT, INC.

                      By: /s/ Michael Thomas
                         --------------------------------------------------
                      Name: Michael Thomas
                           ------------------------------------------------
                      Title: CEO and President
                            -----------------------------------------------

                      LIBRA SECURITIES, LLC

                      By: /s/ Robert G. Morrish
                         --------------------------------------------------
                      Name: Robert G. Morrish
                           ------------------------------------------------
                      Title: Executive Vice President
                            -----------------------------------------------

<PAGE>

                                     ANNEX A

                              PLAN OF DISTRIBUTION

         Each Selling  Stockholder  (the "SELLING  STOCKHOLDERS")  of the common
stock ("COMMON  STOCK") of the Company and any of their pledgees,  assignees and
successors-in-interest  may, from time to time,  sell any or all of their shares
of Common Stock on AMEX or any other stock exchange,  market or trading facility
on which the shares are traded or in private transactions. These sales may be at
fixed or negotiated prices. A Selling Stockholder may use any one or more of the
following methods when selling shares:

         o        ordinary brokerage  transactions and transactions in which the
                  broker-dealer solicits purchasers;

         o        block trades in which the  broker-dealer  will attempt to sell
                  the shares as agent but may  position  and resell a portion of
                  the block as principal to facilitate the transaction;

         o        purchases by a  broker-dealer  as principal  and resale by the
                  broker-dealer for its account;

         o        an exchange  distribution  in accordance with the rules of the
                  applicable exchange;

         o        privately negotiated transactions;

         o        broker-dealers may agree with the Selling Stockholders to sell
                  a specified  number of such shares at a  stipulated  price per
                  share;

         o        a combination of any such methods of sale;

         o        any other method permitted pursuant to applicable law.

         The Selling  Stockholders may also sell shares under Rule 144 under the
Securities Act of 1933, as amended (the "SECURITIES ACT"), if available,  rather
than under this prospectus.

         Broker-dealers  engaged by the  Selling  Stockholders  may  arrange for
other  brokers-dealers  to  participate  in sales.  Broker-dealers  may  receive
commissions or discounts from the Selling Stockholders (or, if any broker-dealer
acts as agent for the purchaser of shares,  from the purchaser) in amounts to be
negotiated.  Each  Selling  Stockholder  does not expect these  commissions  and
discounts  relating  to its sales of shares to exceed what is  customary  in the
types of transactions involved.

         The  Selling  Stockholders  and any  broker-dealers  or agents that are
involved  in selling  the shares may be deemed to be  "underwriters"  within the
meaning of the Securities Act in connection with such sales. In such event,  any
commissions  received  by such  broker-dealers  or agents  and any profit on the
resale  of the  shares  purchased  by  them  may be  deemed  to be  underwriting
commissions or discounts under the Securities Act. Each Selling  Stockholder has
informed  the  Company  that it does not have any  agreement  or  understanding,
directly or indirectly, with any person to distribute the Common Stock.

                                       12
<PAGE>

         The Company is required to pay certain  fees and  expenses  incurred by
the Company incident to the  registration of the shares.  The Company has agreed
to indemnify the Selling  Stockholders against certain losses,  claims,  damages
and liabilities, including liabilities under the Securities Act.

         Because Selling Stockholders may be deemed to be "underwriters"  within
the  meaning of the  Securities  Act,  they will be  subject  to the  prospectus
delivery requirements of the Securities Act. In addition, any securities covered
by this  prospectus  which  qualify  for sale  pursuant  to Rule 144  under  the
Securities  Act may be sold under Rule 144  rather  than under this  prospectus.
Each  Selling  Stockholder  has advised us that they have not  entered  into any
agreements, understandings or arrangements with any underwriter or broker-dealer
regarding the sale of the resale shares. There is no underwriter or coordinating
broker acting in  connection  with the proposed sale of the resale shares by the
Selling Stockholders.

         We  agreed  to use our  commercially  reasonable  efforts  to keep this
prospectus  effective  until the earlier of (i) the date on which the shares may
be resold by the Selling Stockholders without registration and without regard to
any volume  limitations by reason of Rule 144(k) under the Securities Act or any
other rule of similar effect,  (ii) all of the shares have been sold pursuant to
the prospectus or Rule 144 under the Securities Act or any other rule of similar
effect,  or (iii) the second  anniversary  the date of the  Registration  Rights
Agreement to which this Annex A Plan of  Distribution  is  attached.  The resale
shares will be sold only through  registered  or licensed  brokers or dealers if
required under applicable state securities laws. In addition, in certain states,
the resale shares may not be sold unless they have been  registered or qualified
for sale in the  applicable  state or an  exemption  from  the  registration  or
qualification requirement is available and is complied with.

         Under  applicable  rules and  regulations  under the Exchange  Act, any
person engaged in the  distribution of the resale shares may not  simultaneously
engage in market making activities with respect to our common stock for a period
of two business days prior to the commencement of the distribution. In addition,
the  Selling  Stockholders  will be  subject  to  applicable  provisions  of the
Exchange Act and the rules and regulations  thereunder,  including Regulation M,
which may limit the timing of purchases  and sales of shares of our common stock
by the Selling  Stockholders  or any other  person.  We will make copies of this
prospectus  available to the Selling  Stockholders and have informed them of the
need to deliver a copy of this  prospectus to each  purchaser at or prior to the
time of the sale.

                                       13

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