Document:

Exhibit 4.1

                                    DEBENTURE

THE  SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH
THE  UNITED  STATES  SECURITIES  AND  EXCHANGE  COMMISSION  OR  THE  SECURITIES
COMMISSION  OF  ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY
SECTION  3(B)  OF  THE  SECURITIES  ACT  OF  1933, AS AMENDED, AND THE RULES AND
REGULATIONS  PROMULGATED THEREUNDER (THE "1933 ACT"), AND RULE 504 OF REGULATION
D  PROMULGATED  THEREUNDER.

THIS  INFORMATION  IS  DISTRIBUTED  PURSUANT TO AN EXEMPTION FOR SMALL OFFERINGS
UNDER  THE  RULES  OF THE COLORADO SECURITIES DIVISION.  THE SECURITIES DIVISION
HAS  NEITHER REVIEWED OR APPROVED ITS FORM OR CONTENT.  THE SECURITIES DESCRIBED
MAY  ONLY  BE  PURCHASED BY "ACCREDITED INVESTORS" AS DEFINED BY RULE 504 OF SEC
REGULATION  D  AND  THE  RULES  OF  THE  COLORADO  DIVISION.

A-001                                                  US  $1,000,000

     ACCESS  WORLD  TELCOM  &  TECHNOLOGIES  INC.
     --------------------------------------------
     8%  SERIES  A  SENIOR  SUBORDINATED  CONVERTIBLE  REDEEMABLE  DEBENTURE
     DUE  September  11,  2002

     THIS  DEBENTURE of Access World Telcom &  Technologies  Inc., a corporation
duly organized and existing under the laws of Delaware  ("Company"),  designated
as its 8% Series A Senior  Subordinated  Convertible  Redeemable  Debentures Due
September  11, 2002,  in an aggregate  principal  face amount not  exceeding One
Million Dollars (U.S.  $1,000,000 ), which Debentures are being purchased at 90%
of the face amount of such Debentures.

     FOR  VALUE  RECEIVED,  the Company promises to pay to Louvre Investors LLC,
Yellow  Stream  Company,  LLC  and Carlsbad Capital, LLC, the registered holders
hereof  and  its  authorized  successors  and  permitted assigns ("Holder"), the
aggregate  principal  face of One Million Dollars (U.S. $1,000.000) on September
11,  2002  ("Maturity  Date"),  and  to  pay  interest  on  the  principal  sum
outstanding,  at the rate of 8% per annum commencing October 18, 2000 and due in
full  at  the  Maturity  Date  pursuant  to  paragraph  4(b) herein.  Accrual of
outstanding  principal  sum has been made or duly provided for.  The interest so
payable will be paid to the person in whose name this Debenture is registered on
the  records  of  the  Company  regarding  registration  and  transfers  of  the
Debentures  ("Debenture  Register");  provided,  however,  that  the  Company's
obligation  to a transferee of this Debenture arises only if such transfer, sale
or  other disposition is made in accordance with the terms and conditions of the
Securities  Subscription  Agreement  dated  as of September 11, 2000 between the
Company and Louvre Investors LLC, Yellow Stream Company LLC and Carlsbad Capital
LLC  ("Subscription  Agreement").  The  principal  of,  and  interest  on,  this
Debenture are payable at the address last appearing on the Debenture Register of
the  Company  as  designated  in writing by the Holder hereof from time to time.
The Company will pay the outstanding principal due upon this Debenture before or
on  the  Maturity  Date,  less  any  amounts  required  by law to be deducted or
withheld,  to  the  Holder  of this Debenture by check if paid more than 10 days
prior  to  the Maturity Date or by wire transfer and addressed to such Holder at
the  last  address  appearing on the Debenture Register.  The forwarding of such
check  or  wire  transfer  shall  constitute  a payment of outstanding principal
hereunder  and  shall  satisfy and discharge the liability for principal on this
Debenture  to  the extent of the sum represented by such check or wire transfer.
Interest  shall  be  payable  in  Common  Stock  (as  defined below) pursuant to
paragraph  4(b)  herein.

                                       E-19
<PAGE>

This Debenture is subject to the following additional provisions:

1.   The  Debentures  are  issuable in  denominations  of Ten  Thousand  Dollars
     (US$10,000) and integral multiples thereof. The Debentures are exchangeable
     for  an  equal  aggregate  principal  amount  of  Debentures  of  different
     authorized  denominations,  as  requested by the Holders  surrendering  the
     same,  but not less than U.S.  $10,000.  No service charge will be made for
     such registration or transfer or exchange, except that Holder shall pay any
     tax or other governmental charges payable in connection therewith.

2.   The Company  shall be entitled to withhold  from all  payments  any amounts
     required to be withheld under the applicable laws.

3.   This Debenture may be transferred or exchanged only in compliance  with the
     Securities  Act of 1933,  as  amended  ("Act")  and  applicable  state  ---
     securities  laws.  Prior to due presentment for transfer of this Debenture,
     the Company and any agent of the Company may treat the person in whose name
     this Debenture is duly  registered on the Company's  Debenture  Register as
     the owner hereof for all other  purposes,  whether or not this Debenture be
     overdue,  and  neither  the Company nor any such agent shall be affected or
     bound by notice to the contrary. Any Holder of this Debenture,  electing to
     exercise  the right of  conversion  set forth in Section  4(a)  hereof,  in
     addition to the requirements set forth in Section 4(a), and any prospective
     transferee of this Debenture, are also required to give the Company written
     confirmation that the Debenture is being converted ("Notice of Conversion")
     in the form annexed hereto as Exhibit I.

4.   (a)  The Holder of this  Debenture is entitled,  at its option,  at any
          time immediately following execution of this Agreement and delivery of
          the Debenture hereof, to convert all or any amount over $10,000 of the
          principal face amount of this Debenture then  outstanding  into freely
          tradeable  shares of common  stock,  no par  value per  share,  of the
          Company without  restrictive legend of any nature ("Common Stock"), at
          a conversion price ("Conversion Price") for each share of Common Stock
          equal to (i) 70% of the per share price valued in accordance  with the
          book value of the  Company's  shares  which  shall  include but not be
          limited to all assets and good will of the Company and the proceeds of
          this Debenture and any other Debenture issued simultaneously with this
          Debenture  or within 30 days of the  issuance of this  Debenture,  but
          shall not include any liabilities of the Company ("Asset Book Value"),
          or, if the Company or its successor or the assignee of this  Debenture
          is traded on any exchange,  (ii) 70% of the average  closing bid price
          of the  Common  Stock  as  reported  on the  National  Association  of
          Securities  Dealers  Electronic  Bulletin Board ("OTC Bulletin Board")
          for the 5 consecutive  trading days immediately  preceding the date of
          receipt  by  the  Company  of  a  Notice  of  Conversion  ("Conversion
          Shares").  If the number of  resultant  Conversion  Shares  would as a
          matter of law or pursuant to regulatory  authority require the Company
          to seek shareholder  approval of such issuance,  the Company shall, as
          soon as  practicable,  take the necessary steps to seek such approval.
          Such conversion shall be effectuated,  as provided in a certain Escrow
          Agreement executed  simultaneously with this Debenture, by the Company
          delivering the Conversion  Shares to the Holder within 5 business days
          of receipt by the Company of the Notice of Conversion. Once the Holder
          has received such Conversion  Shares, the Escrow Agent shall surrender
          the Debentures to be converted to the Company,  executed by the Holder
          of this Debenture  evidencing such Holder's  intention to convert this
          Debenture or a specified  portion  hereof,  and  accompanied by proper
          assignment  hereof in blank.  Accrued  but  unpaid  interest  shall be
          subject to  conversion.  No  fractional  shares or scrip  representing
          fractions  of shares will be issued on  conversion,  but the number of
          shares issuable shall be rounded to the nearest whole share.

                                       E-20
<PAGE>

     (b)  Interest at the rate of 8% per annum  shall be paid by issuing  Common
          Stock of the Company as follows:  Based on the Asset Book Value, or if
          the shares of Common  Stock of the Company are traded on an  exchange,
          the average  closing bid price of the Common  Stock as reported on the
          OTC Bulletin  Board for the 5  consecutive  trading  days  immediately
          preceding  the  date of the  monthly  interest  payment  due  ("Market
          Price"),  the Company shall issue to the Holder shares of Common Stock
          in an  amount  equal to the total  monthly  interest  accrued  and due
          divided by 70% of the Market  Price  ("Interest  Shares").  The dollar
          amount of interest  payable  pursuant to this  paragraph 4(b) shall be
          calculated  based upon the total amount of payments  actually  made by
          the Holder in  connection  with the purchase of the  Debentures at the
          time any  interest  payment is due. If such  payment is made by check,
          interest  shall  accrue  beginning  10 days from the date the check is
          received  by the  Company.  If such  payment is made by wire  transfer
          directly into the Company's  account,  interest shall accrue beginning
          on the date the wire transfer is received by the Company. Common Stock
          issued  pursuant  hereto  shall  be  issued  pursuant  to Rule  504 of
          Regulation  D  in  accordance  with  the  terms  of  the  Subscription
          Agreement.

     (c)  At any time after 90 days the Company  shall have the option to pay to
          the Holder 130% of the principal amount of the Debenture,  in full, to
          the extent  conversion  has not occurred  pursuant to  paragraph  4(a)
          herein,  or pay upon maturity if the Debenture is not  converted.  The
          Company  shall  give the Holder 5 days  written  notice and the Holder
          during such 5 days shall have the option to convert the  Debenture  or
          any part thereof into shares of Common Stock at the  Conversion  Price
          set forth in paragraph 4(a) of this Debenture.

     (d)  Upon (i) a transfer of all or  substantially  all of the assets of the
          Company  to any  person in a single  transaction  or series of related
          transactions,  or (ii) a consolidation,  merger or amalgamation of the
          Company with or into another  person or entity in which the Company is
          not the surviving entity (other than a merger which is effected solely
          to change the jurisdiction of incorporation of the Company and results
          in a reclassification, conversion or exchange of outstanding shares of
          Common  Stock  solely into shares of Common  Stock) (each of items (i)
          and (ii) being referred to as a "Sale Event"), then, in each case, the
          Company  shall,  upon  request of any  Holder,  redeem the  Debentures
          registered  in the  name  of  such  Holder  in  cash  for  130% of the
          principal amount, plus accrued but unpaid interest through the date of
          redemption,  or at the election of the Holder, such Holder may convert
          the  unpaid  principal  amount of this  Debenture  (together  with the
          amount of accrued but unpaid  interest) into shares of Common Stock of
          the surviving entity at the Conversion Price.

                                       E-21
<PAGE>

     (e)  In case  of any  reclassification,  capital  reorganization  or  other
          change or exchange of  outstanding  shares of the Common Stock,  or in
          case  of any  consolidation  or  merger  of the  Company  with or into
          another corporation (other than a consolidation or merger in which the
          Seller is the continuing  corporation and which does not result in any
          reclassification,   capital   reorganization   or  other   change   of
          outstanding shares of Common Stock), the Company shall cause effective
          provision to be made so that the Holder of this  Debenture  shall have
          the right  thereafter,  by converting this  Debenture,  to purchase or
          convert this  Debenture into the kind and number of shares of stock or
          other  securities or property  (including  cash)  receivable upon such
          reclassification,    capital    reorganization    or   other   change,
          consolidation  or merger by a holder of the number of shares of Common
          Stock that could have been  purchased  upon exercise of the Debentures
          and at  the  same  Conversion  Price,  as  defined  in the  Debenture,
          immediately prior to such reclassification,  capital reorganization or
          other change,  consolidation or merger. The foregoing provisions shall
          similarly    apply   to    successive    reclassifications,    capital
          reorganizations  and other  changes  of  outstanding  shares of Common
          Stock  and  to   successive   consolidations   or   mergers.   If  the
          consideration  received by the  holders of Common  Stock is other than
          cash,  the value shall be as  determined  by the Board of Directors of
          the Company or successor person or entity acting in good faith.

5.   No provision of this Debenture  shall alter or impair the obligation of the
     Company, which is absolute and unconditional,  to pay the principal of, and
     interest on, this Debenture at the time,  place, and rate, and in the form,
     herein prescribed.

6.   The Company hereby  expressly  waives demand and  presentment  for payment,
     notice of  non-payment,  protest,  notice of protest,  notice of  dishonor,
     notice of acceleration or intent to accelerate, and diligence in taking any
     action to collect  amounts  called for  hereunder and shall be directly and
     primarily liable for the payment of all sums owing and to be owing hereto.

7.   The  Company  agrees to pay all costs and  expenses,  including  reasonable
     attorneys'  fees,  which may be  incurred by the Holder in  collecting  any
     amount due under this Debenture.

8.   If one or more of the following  described  "Events of Default" shall occur
     and continue for 30 days, unless a different time frame is noted below:

     (a)  The Company  shall  default in the payment of principal or interest on
          this Debenture; or

                                       E-22
<PAGE>

     (b)  Any of the  representations  or warranties made by the Company herein,
          in the Subscription  Agreement,  or in any certificate or financial or
          other written  statements  heretofore or hereafter  furnished by or on
          behalf of the Company in connection with the execution and delivery of
          this  Debenture  or the  Subscription  Agreement  shall  be  false  or
          misleading  in any  material  respect at the time made or the  Company
          shall violate any covenants in the  Subscription  Agreement  including
          but not limited to Section 5(b) or 10; or

     (c)  The Company shall fail to perform or observe, in any material respect,
          any  other  covenant,   term,  provision,   condition,   agreement  or
          obligation  of the  Company  under this  Debenture,  the  Subscription
          Agreement  or the Escrow  Agreement  and such failure  shall  continue
          uncured for a period of thirty (30) days after  notice from the Holder
          of such failure; or

     (d)  The  Company  shall (1) become  insolvent;  (2) admit in  writing  its
          inability  to pay its  debts  generally  as they  mature;  (3) make an
          assignment  for the benefit of creditors or commence  proceedings  for
          its  dissolution;  (4) apply for or  consent to the  appointment  of a
          trustee,  liquidator or receiver for its or for a substantial  part of
          its property or business;  (5) file a petition for bankruptcy  relief,
          consent to the  filing of such  petition  or have filed  against it an
          involuntary petition for bankruptcy relief, all under federal or state
          laws as applicable; or

     (e)  A trustee,  liquidator or receiver  shall be appointed for the Company
          or for a  substantial  part of its  property or  business  without its
          consent and shall not be discharged within thirty (30) days after such
          appointment; or

     (f)  Any governmental agency or any court of competent  jurisdiction at the
          instance of any governmental agency shall assume custody or control of
          the whole or any  substantial  portion of the  properties or assets of
          the Company; or

     (g)  Any money judgment, writ or warrant of attachment, or similar process,
          in excess of One Hundred Thousand  ($100,000) Dollars in the aggregate
          shall be entered or filed against the Company or any of its properties
          or other  assets  and shall  remain  unpaid,  unvacated,  unbonded  or
          unstayed  for a period of fifteen (15) days or in any event later than
          five (5) days prior to the date of any proposed sale thereunder; or

     (h)  Bankruptcy, reorganization,  insolvency or liquidation proceedings, or
          other  proceedings  for relief under any bankruptcy law or any law for
          the  relief  of  debtors  shall  be  instituted   voluntarily   by  or
          involuntarily against the Company; or

     (i)  The  Company   shall  have  its  Common   Stock   delisted   from  the
          over-the-counter  market  or other  market  or  exchange  on which the
          Common Stock is or becomes listed or, if the Common Stock trades, then
          trading  in the  Common  Stock  shall be  suspended  for more  than 10
          consecutive days; or

                                       E-23
<PAGE>

     (j)  The Company  shall not deliver to the Buyer the Common Stock  pursuant
          to paragraph 4 herein  without  restrictive  legend  within 5 business
          days.

Then,  or at any time thereafter, unless cured, and in each and every such case,
unless  such  Event  of  Default shall have been waived in writing by the Holder
(which  waiver  shall not be deemed to be a waiver of any subsequent default) at
the  option  of  the  Holder and in the Holder's sole discretion, the Holder may
consider  this  Debenture  immediately  due  and  payable,  without presentment,
demand,  protest  or  (further)  notice  of  any  kind  (other  than  notice  of
acceleration),  all  of which are hereby expressly waived, anything herein or in
any note or other instruments contained to the contrary notwithstanding, and the
Holder  may  immediately, and without expiration of any period of grace, enforce
any  and  all  of  the Holder's rights and remedies provided herein or any other
rights  or  remedies  afforded  by  law.

9.   This Debenture represents a prioritized obligation of the Company. However,
     no  recourse  shall be had for the  payment  of the  principal  of,  or the
     interest on, this Debenture, or for any claim based hereon, or otherwise in
     respect hereof, against any incorporator, shareholder, officer or director,
     as  such,  past,  present  or  future,  of the  Company  or  any  successor
     corporation, whether by virtue of any constitution, statute or rule of law,
     or by the  enforcement of any assessment or penalty or otherwise,  all such
     liability being, by the acceptance  hereof and as part of the consideration
     for the issue hereof, expressly waived and released.

10.  In case any  provision  of this  Debenture  is held by a court of competent
     jurisdiction   to  be   excessive   in  scope  or   otherwise   invalid  or
     unenforceable,  such  provision  shall be adjusted  rather than voided,  if
     possible, so that it is enforceable to the maximum extent possible, and the
     validity and  enforceability of the remaining  provisions of this Debenture
     will not in any way be affected or impaired thereby.

11.  This Debenture and the agreements referred to in this Debenture  constitute
     the full and entire understanding and agreement between the Company and the
     Holder with respect to the subject  hereof.  Neither this Debenture nor any
     term hereof may be amended, waived,  discharged or terminated other than by
     a written instrument signed by the Company and the Holder.

12.  This  Debenture  shall be governed by and construed in accordance  with the
     laws of Colorado  applicable  to contracts  made and wholly to be performed
     within the State of Colorado and shall be binding upon the  successors  and
     assigns of each party hereto.  The Holder and the Company  hereby  mutually
     waive trial by jury and consent to exclusive  jurisdiction and venue in the
     courts of the State of Colorado. At Holder's election,  any dispute between
     the parties may be arbitrated  rather than litigated in the courts,  before
     the American  Arbitration  Association in Denver and pursuant to its rules.
     Upon demand made by the Holder to the Company, the Company agrees to submit
     to and participate in such  arbitration.  This Agreement may be executed in
     counterparts,  and the facsimile transmission of an executed counterpart to
     this Agreement shall be effective as an original.

                  {REMAINDER OF PAGE INTENTIONALLY LEFT BLANK}

                                       E-24
<PAGE>

     IN  WITNESS  WHEREOF,  the  Company  has  caused this instrument to be duly
executed  by  an  officer  thereunto  duly  authorized.

Dated:  September  11,  2000

ACCESS  WORLD  TELCOM
     &  TECHNOLOGIES  INC.

     By: /s/ Armand  Ventura

     Title:  President

<PAGE>
                                   SCHEDULE A
                                   DEBENTURES
                                   ----------

                              AGGREGATE PRINCIPAL
            NAME/ADDRESS     AMOUNT OF DEBENTURES     PURCHASE PRICE
            ------------     --------------------     --------------

Yellow  Stream  Company  LLC
c/o  Novack  Burnbaum  Crystal  LLC
300  East  42nd  Street
               New York, New York 10017     $333,000     $299,700
               ------------------------     --------     --------

Louvre  Investors  LLC
c/o  Novack  Burnbaum  Crystal  LLC
300  East  42nd  Street
               New York, New York 10017     $333,000     $299,700
               ------------------------     --------     --------

Carlsbad  Capital  LLC
c/o  Novack  Burnbaum  Crystal  LLC
300 East 42nd Street                        $334,000     $300,600
New  York,  New  York  10017
----------------------------   TOTAL      $1,000,000     $900,000
                               -----      ----------     --------

                                       E-25
<PAGE>

                                    DEBENTURE

THE  SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH
THE  UNITED  STATES  SECURITIES  AND  EXCHANGE  COMMISSION  OR  THE  SECURITIES
COMMISSION  OF  ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY
SECTION  3(B)  OF  THE  SECURITIES  ACT  OF  1933, AS AMENDED, AND THE RULES AND
REGULATIONS  PROMULGATED THEREUNDER (THE "1933 ACT"), AND RULE 504 OF REGULATION
D  PROMULGATED  THEREUNDER.

THIS  INFORMATION  IS  DISTRIBUTED  PURSUANT TO AN EXEMPTION FOR SMALL OFFERINGS
UNDER  THE  RULES  OF THE COLORADO SECURITIES DIVISION.  THE SECURITIES DIVISION
HAS  NEITHER REVIEWED OR APPROVED ITS FORM OR CONTENT.  THE SECURITIES DESCRIBED
MAY  ONLY  BE  PURCHASED BY "ACCREDITED INVESTORS" AS DEFINED BY RULE 504 OF SEC
REGULATION  D  AND  THE  RULES  OF  THE  COLORADO  DIVISION.

S-001                                                  US  $1,000,000

     SARATOGA  INTERNATIONAL  HOLDINGS  CORP.
     ---------------------------------------

     8%  SERIES  SENIOR  SUBORDINATED  CONVERTIBLE  REDEEMABLE  DEBENTURE
     DUE  SEPTEMBER  25,  2002

     THIS DEBENTURE of Saratoga International Holdings Corp. Inc., a corporation
duly  organized and existing under the laws of Nevada ("Company"), designated as
its  8%  Series  S  Senior Subordinated Convertible Debentures Due September 25,
2002,  in  an  aggregate principal face amount not exceeding One Million Dollars
(U.S.  $1,000,000  ),  which  Debentures  are being purchased at 90% of the face
amount  of  such  Debentures.

     FOR  VALUE  RECEIVED,  the Company promises to pay to Louvre Investors LLC,
Yellow  Stream  Company  LLC,  and  Carlsbad Capital LLC, the registered holders
hereof  and  its  authorized  successors  and  permitted assigns ("Holder"), the
aggregate  principal  face of One Million Dollars (U.S. $1,000.000) on September
25,  2002  ("Maturity  Date"),  and  to  pay  interest  on  the  principal  sum
outstanding,  at the rate of 8% per annum commencing October 25, 2000 and due in
full  at  the  Maturity  Date  pursuant  to  paragraph  4(b) herein.  Accrual of
outstanding  principal  sum has been made or duly provided for.  The interest so
payable will be paid to the person in whose name this Debenture is registered on
the  records  of  the  Company  regarding  registration  and  transfers  of  the
Debentures  ("Debenture  Register");  provided,  however,  that  the  Company's
obligation  to a transferee of this Debenture arises only if such transfer, sale
or  other disposition is made in accordance with the terms and conditions of the
Securities  Subscription  Agreement  dated  as of September 25, 2000 between the
Company and Louvre Investors LLC, Yellow Stream Company LLC and Carlsbad Capital
LLC  ("Subscription  Agreement").  The  principal  of,  and  interest  on,  this
Debenture are payable at the address last appearing on the Debenture Register of
the  Company  as  designated  in writing by the Holder hereof from time to time.
The Company will pay the outstanding principal due upon this Debenture before or
on  the  Maturity  Date,  less  any  amounts  required  by law to be deducted or
withheld,  to  the  Holder  of this Debenture by check if paid more than 10 days
prior  to  the Maturity Date or by wire transfer and addressed to such Holder at
the  last  address  appearing on the Debenture Register.  The forwarding of such
check  or  wire  transfer  shall  constitute  a payment of outstanding principal
hereunder  and  shall  satisfy and discharge the liability for principal on this
Debenture  to  the extent of the sum represented by such check or wire transfer.
Interest  shall  be  payable  in  Common  Stock  (as  defined below) pursuant to
paragraph  4(b)  herein.

                                       E-26
<PAGE>

This Debenture is subject to the following additional provisions:

1.   The  Debentures  are  issuable in  denominations  of Ten  Thousand  Dollars
     (US$10,000) and integral multiples thereof. The Debentures are exchangeable
     for  an  equal  aggregate  principal  amount  of  Debentures  of  different
     authorized  denominations,  as  requested by the Holders  surrendering  the
     same,  but not less than U.S.  $10,000.  No service charge will be made for
     such registration or transfer or exchange, except that Holder shall pay any
     tax or other governmental charges payable in connection therewith.

2.   The Company  shall be entitled to withhold  from all  payments  any amounts
     required to be withheld under the applicable laws.

3.   This Debenture may be transferred or exchanged only in compliance  with the
     Securities Act of 1933, as amended ("Act") and applicable  state securities
     laws. Prior to due presentment for transfer of this Debenture,  the Company
     and any  agent of the  Company  may treat  the  person  in whose  name this
     Debenture is duly  registered  on the Company's  Debenture  Register as the
     owner  hereof  for all other  purposes,  whether or not this  Debenture  be
     overdue,  and  neither  the Company nor any such agent shall be affected or
     bound by notice to the contrary. Any Holder of this Debenture,  electing to
     exercise  the right of  conversion  set forth in Section  4(a)  hereof,  in
     addition to the requirements set forth in Section 4(a), and any prospective
     transferee of this Debenture, are also required to give the Company written
     confirmation that the Debenture is being converted ("Notice of Conversion")
     in the form annexed hereto as Exhibit I.

4.   (a)  The  Holder of this  Debenture is entitled,  at its option,  at any
          time immediately following execution of this Agreement and delivery of
          the Debenture hereof, to convert all or any amount over $10,000 of the
          principal face amount of this Debenture then  outstanding  into freely
          tradeable  shares of common  stock,  no par  value per  share,  of the
          Company without  restrictive legend of any nature ("Common Stock"), at
          a conversion price ("Conversion Price") for each share of Common Stock
          equal to 70% of the lowest  closing  bid price of the Common  Stock as
          reported on the OTC Electronic Bulletin Board or any exchange on which
          the Company's shares are traded ("OTCBB") for any of the 3 consecutive
          trading days immediately  preceding the date of receipt by the Company
          of each Notice of Conversion  ("Conversion  Shares"). If the number of
          resultant  Conversion  Shares  would as a matter of law or pursuant to
          regulatory  authority require the Company to seek shareholder approval
          of such issuance, the Company shall, as soon as practicable,  take the
          necessary  steps  to seek  such  approval.  Such  conversion  shall be
          effectuated,  as  provided  in a  certain  Escrow  Agreement  executed
          simultaneously  with this  Debenture,  by the Company  delivering  the
          Conversion  Shares to the Holder  within 5 business days of receipt by
          the Company of the Notice of Conversion.  Once the Holder has received
          such  Conversion   Shares,   the  Escrow  Agent  shall  surrender  the
          Debentures  to be converted to the Company,  executed by the Holder of
          this  Debenture  evidencing  such  Holder's  intention to convert this
          Debenture or a specified  portion  hereof,  and  accompanied by proper
          assignment  hereof in blank.  Accrued  but  unpaid  interest  shall be
          subject to  conversion.  No  fractional  shares or scrip  representing
          fractions  of shares will be issued on  conversion,  but the number of
          shares issuable shall be rounded to the nearest whole share.

                                       E-27
<PAGE>

     (b)  Interest at the rate of 8% per annum  shall be paid by issuing  Common
          Stock of the Company as follows: Based on the lowest closing bid price
          of the Common  Stock as reported on the OTCBB or any exchange on which
          the Company's Common Stock trades for any of the 3 consecutive trading
          days  immediately  preceding the date of the monthly  interest payment
          due ("Market Price"),  the Company shall issue to the Holder shares of
          Common Stock in an amount equal to the total monthly  interest accrued
          and due divided by 70% of the Market Price  ("Interest  Shares").  The
          dollar  amount of interest  payable  pursuant to this  paragraph  4(b)
          shall be calculated  based upon the total amount of payments  actually
          made by the Holder in connection  with the purchase of the  Debentures
          at the time any  interest  payment is due. If such  payment is made by
          check, interest shall accrue beginning 10 days from the date the check
          is received by the Company.  If such payment is made by wire  transfer
          directly into the Company's  account,  interest shall accrue beginning
          on the date the wire transfer is received by the Company. Common Stock
          issued  pursuant  hereto  shall  be  issued  pursuant  to Rule  504 of
          Regulation  D  in  accordance  with  the  terms  of  the  Subscription
          Agreement.

     (c)  At any time after 90 days the Company  shall have the option to pay to
          the Holder 130% of the principal amount of the Debenture,  in full, to
          the extent  conversion  has not occurred  pursuant to  paragraph  4(a)
          herein,  or pay upon maturity if the Debenture is not  converted.  The
          Company  shall  give the Holder 5 days  written  notice and the Holder
          during such 5 days shall have the option to convert the  Debenture  or
          any part thereof into shares of Common Stock at the  Conversion  Price
          set forth in paragraph 4(a) of this Debenture.

     (c)  Upon (i) a transfer of all or  substantially  all of the assets of the
          Company  to any  person in a single  transaction  or series of related
          transactions,  or (ii) a consolidation,  merger or amalgamation of the
          Company with or into another  person or entity in which the Company is
          not the surviving entity (other than a merger which is effected solely
          to change the jurisdiction of incorporation of the Company and results
          in a reclassification, conversion or exchange of outstanding shares of
          Common  Stock  solely into shares of Common  Stock) (each of items (i)
          and (ii) being referred to as a "Sale Event"), then, in each case, the
          Company  shall,  upon  request of any  Holder,  redeem the  Debentures
          registered  in the  name  of  such  Holder  in  cash  for  125% of the
          principal amount, plus accrued but unpaid interest through the date of
          redemption,  or at the election of the Holder, such Holder may convert
          the  unpaid  principal  amount of this  Debenture  (together  with the
          amount of accrued but unpaid  interest) into shares of Common Stock of
          the surviving entity at the Conversion Price.

     (d)  In case  of any  reclassification,  capital  reorganization  or  other
          change or exchange of  outstanding  shares of the Common Stock,  or in
          case  of any  consolidation  or  merger  of the  Company  with or into
          another corporation (other than a consolidation or merger in which the
          Seller is the continuing  corporation and which does not result in any
          reclassification,   capital   reorganization   or  other   change   of
          outstanding shares of Common Stock), the Company shall cause effective
          provision to be made so that the Holder of this  Debenture  shall have
          the right  thereafter,  by converting this  Debenture,  to purchase or
          convert this  Debenture into the kind and number of shares of stock or
          other  securities or property  (including  cash)  receivable upon such
          reclassification,    capital    reorganization    or   other   change,
          consolidation  or merger by a holder of the number of shares of Common
          Stock that could have been  purchased  upon exercise of the Debentures
          and at  the  same  Conversion  Price,  as  defined  in the  Debenture,
          immediately prior to such reclassification,  capital reorganization or
          other change,  consolidation or merger. The foregoing provisions shall
          similarly    apply   to    successive    reclassifications,    capital
          reorganizations  and other  changes  of  outstanding  shares of Common
          Stock  and  to   successive   consolidations   or   mergers.   If  the
          consideration  received by the  holders of Common  Stock is other than
          cash,  the value shall be as  determined  by the Board of Directors of
          the Company or successor person or entity acting in good faith.

                                       E-28
<PAGE>

5.   No provision of this Debenture  shall alter or impair the obligation of the
     Company, which is absolute and unconditional,  to pay the principal of, and
     interest on, this Debenture at the time,  place, and rate, and in the form,
     herein prescribed.

6.   The Company hereby  expressly  waives demand and  presentment  for payment,
     notice of  non-payment,  protest,  notice of protest,  notice of  dishonor,
     notice of acceleration or intent to accelerate, and diligence in taking any
     action to collect  amounts  called for  hereunder and shall be directly and
     primarily liable for the payment of all sums owing and to be owing hereto.

7.   The  Company  agrees to pay all costs and  expenses,  including  reasonable
     attorneys'  fees,  which may be  incurred by the Holder in  collecting  any
     amount due under this Debenture.

8.   If one or more of the following  described  "Events of Default" shall occur
     and continue for 30 days, unless a different time frame is noted below:

     (a)  The Company  shall  default in the payment of principal or interest on
          this Debenture; or

     (b)  Any of the  representations  or warranties made by the Company herein,
          in the Subscription  Agreement,  or in any certificate or financial or
          other written  statements  heretofore or hereafter  furnished by or on
          behalf of the Company in connection with the execution and delivery of
          this  Debenture  or the  Subscription  Agreement  shall  be  false  or
          misleading  in any  material  respect at the time made or the  Company
          shall violate any covenants in the  Subscription  Agreement  including
          but not limited to Section 5(b) or 10; or

     (c)  The Company shall fail to perform or observe, in any material respect,
          any  other  covenant,   term,  provision,   condition,   agreement  or
          obligation  of the  Company  under this  Debenture,  the  Subscription
          Agreement  or the Escrow  Agreement  and such failure  shall  continue
          uncured for a period of thirty (30) days after  notice from the Holder
          of such failure; or

     (d)  The  Company  shall (1) become  insolvent;  (2) admit in  writing  its
          inability  to pay its  debts  generally  as they  mature;  (3) make an
          assignment  for the benefit of creditors or commence  proceedings  for
          its  dissolution;  (4) apply for or  consent to the  appointment  of a
          trustee,  liquidator or receiver for its or for a substantial  part of
          its property or business;  (5) file a petition for bankruptcy  relief,
          consent to the  filing of such  petition  or have filed  against it an
          involuntary petition for bankruptcy relief, all under federal or state
          laws as applicable; or

     (e)  A trustee,  liquidator or receiver  shall be appointed for the Company
          or for a  substantial  part of its  property or  business  without its
          consent and shall not be discharged within thirty (30) days after such
          appointment; or

                                       E-29
<PAGE>

     (f)  Any governmental agency or any court of competent  jurisdiction at the
          instance of any governmental agency shall assume custody or control of
          the whole or any  substantial  portion of the  properties or assets of
          the Company; or

     (g)  Any money judgment, writ or warrant of attachment, or similar process,
          in excess of One Hundred Thousand  ($100,000) Dollars in the aggregate
          shall be entered or filed against the Company or any of its properties
          or other  assets  and shall  remain  unpaid,  unvacated,  unbonded  or
          unstayed  for a period of fifteen (15) days or in any event later than
          five (5) days prior to the date of any proposed sale thereunder; or

     (h)  Bankruptcy, reorganization,  insolvency or liquidation proceedings, or
          other  proceedings  for relief under any bankruptcy law or any law for
          the  relief  of  debtors  shall  be  instituted   voluntarily   by  or
          involuntarily against the Company; or

     (i)  The  Company   shall  have  its  Common   Stock   delisted   from  the
          over-the-counter  market  or other  market  or  exchange  on which the
          Common Stock is or becomes listed or, if the Common Stock trades, then
          trading  in the  Common  Stock  shall be  suspended  for more  than 10
          consecutive days; or

     (j)  The Company  shall not deliver to the Buyer the Common Stock  pursuant
          to paragraph 4 herein  without  restrictive  legend  within 5 business
          days. Then, or at any time  thereafter,  unless cured, and in each and
          every such case,  unless such Event of Default  shall have been waived
          in  writing by the Holder  (which  waiver  shall not be deemed to be a
          waiver of any  subsequent  default) at the option of the Holder and in
          the Holder's sole  discretion,  the Holder may consider this Debenture
          immediately due and payable,  without presentment,  demand, protest or
          (further) notice of any kind (other than notice of acceleration),  all
          of which are hereby expressly  waived,  anything herein or in any note
          or other instruments  contained to the contrary  notwithstanding,  and
          the Holder may  immediately,  and without  expiration of any period of
          grace,  enforce  any  and  all of the  Holder's  rights  and  remedies
          provided herein or any other rights or remedies afforded by law.

9.   This Debenture represents a prioritized obligation of the Company. However,
     no  recourse  shall be had for the  payment  of the  principal  of,  or the
     interest on, this Debenture, or for any claim based hereon, or otherwise in
     respect hereof, against any incorporator, shareholder, officer or director,
     as  such,  past,  present  or  future,  of the  Company  or  any  successor
     corporation, whether by virtue of any constitution, statute or rule of law,
     or by the  enforcement of any assessment or penalty or otherwise,  all such
     liability being, by the acceptance  hereof and as part of the consideration
     for the issue hereof, expressly waived and released.

10.  In case any  provision  of this  Debenture  is held by a court of competent
     jurisdiction   to  be   excessive   in  scope  or   otherwise   invalid  or
     unenforceable,  such  provision  shall be adjusted  rather than voided,  if
     possible, so that it is enforceable to the maximum extent possible, and the
     validity and  enforceability of the remaining  provisions of this Debenture
     will not in any way be affected or impaired thereby.

                                       E-30
<PAGE>

11.  This Debenture and the agreements referred to in this Debenture  constitute
     the full and entire understanding and agreement between the Company and the
     Holder with respect to the subject  hereof.  Neither this Debenture nor any
     term hereof may be amended, waived,  discharged or terminated other than by
     a written instrument signed by the Company and the Holder.

12.  This  Debenture  shall be governed by and construed in accordance  with the
     laws of Colorado  applicable  to contracts  made and wholly to be performed
     within  Colorado  and shall be binding upon the  successors  and assigns of
     each party hereto.  The Holder and the Company hereby  mutually waive trial
     by jury and consent to  exclusive  jurisdiction  and venue in the courts of
     Colorado.  At Holder's  election,  any  dispute  between the parties may be
     arbitrated rather than litigated in the courts,  before and pursuant to the
     rules of the American  Arbitration  Association in Denver. Upon demand made
     by the  Holder  to  the  Company,  the  Company  agrees  to  submit  to and
     participate  in  such  arbitration.  This  Agreement  may  be  executed  in
     counterparts,  and the facsimile transmission of an executed counterpart to
     this Agreement shall be effective as an original.

                                       E-31
<PAGE>

     IN  WITNESS  WHEREOF,  the  Company  has  caused this instrument to be duly
executed  by  an  officer  thereunto  duly  authorized.

Dated:  September  25,  2000

SARATOGA  INTERNATIONAL
     HOLDINGS  CORP.

     By:/s/Patrick  F.  Charles
         Title:  President

                                       E-32
<PAGE>

                                   SCHEDULE A

                                   DEBENTURES
                                   ----------

                              AGGREGATE PRINCIPAL
            NAME/ADDRESS     AMOUNT OF DEBENTURES     PURCHASE PRICE
            ------------     --------------------     --------------

Yellow  Stream  Company  LLC
c/o  Novack  Burnbaum  Crystal  LLC
300  East  42nd  Street
New York, New York 10017                    $333,000     $299,700
                                            --------     --------

Louvre  Investors  LLC
c/o  Novack  Burnbaum  Crystal  LLC
300  East  42nd  Street
New York, New York 10017                    $333,000     $299,700
                                            --------     --------

                                            $334,000     $334,000
Carlsbad  Capital  LLC
c/o  Novack  Burnbaum  Crystal  LLC
300 East 42nd Street
New  York,  New  York  10017

                                TOTAL     $1,000,000     $900,000
                                -----     ----------     --------

                        SECURITIES SUBSCRIPTION AGREEMENT

     THIS  SECURITIES  SUBSCRIPTION  AGREEMENT,  dated  as of September 11, 2000
("Agreement"),  is  executed  in  reliance  upon the exemption from registration
afforded  by  Rule  504  promulgated  under  Regulation  D by the Securities and
Exchange  Commission  ("SEC"),  under  the  Securities  Act of 1933, as amended.
Capitalized  terms  used herein and not defined shall have the meanings given to
them  in  Rule  504  and  Regulation  D.

     This  Agreement  has  been executed by the undersigned buyers ("Buyer"), to
purchase  the  amounts  set  forth on Schedule A hereto,  in connection with the
private  placement  of  8%  Series  A Senior Subordinated Convertible Redeemable
Debentures  of Access World Telcom & Technologies Inc. , a corporation organized
under  the  laws  of  Delaware,  with  executive  offices located at 515 Madison
Avenue,  Suite  1909,  New  York,  New  York  10022  ("Seller").  Buyer  hereby
represents  and  warrants  to,  and  agrees  with  Seller:

THE  SECURITIES OFFERED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF
ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(B) OF
THE  SECURITIES  ACT  OF  1933,  AS  AMENDED ("THE 1933 ACT"), AND THE RULES AND
REGULATIONS  PROMULGATED THEREUNDER (THE "1933 ACT"), AND RULE 504 OF REGULATION
D  PROMULGATED  THEREUNDER.  THIS  INFORMATION  IS  DISTRIBUTED  PURSUANT  TO AN
EXEMPTION  FOR  SMALL  OFFERINGS  UNDER  THE  RULES  OF  THE COLORADO SECURITIES
DIVISION.  THE  SECURITIES DIVISION HAS NEITHER REVIEWED OR APPROVED ITS FORM OR
CONTENT.  THE  SECURITIES  DESCRIBED  MAY  ONLY  BE  PURCHASED  BY  "ACCREDITED
INVESTORS"  AS  DEFINED  BY  RULE  504  OF SEC REGULATION D AND THE RULES OF THE
COLORADO  DIVISION.

                                       E-33
<PAGE>

1.   Agreement to Subscribe; Purchase Price.

     (a)  Subscription.  The undersigned  Buyer hereby subscribes for and agrees
          to purchase the Seller's 8% Series A Senior  Subordinated  Convertible
          Redeemable  Debenture  substantially  in the  form  of  the  Debenture
          attached  as  Exhibit  A  hereto  and  having  an  aggregate  original
          principal face amount of One Million United States dollars  $1,000,000
          (singly,  a "Debenture," and collectively,  the  "Debentures"),  at an
          aggregate  purchase price of 90% of the face amount of such Debentures
          as set forth in subsection (b) herein.

     (b)  Payment.  The Purchase  Price for the Debenture  shall be Nine Hundred
          Thousand  United States Dollars (U.S.  $900,000)  ("Purchase  Price"),
          which shall be payable at closing,  pursuant to paragraph c herein, in
          accordance with the terms and conditions of an Escrow  Agreement which
          shall  be  executed   simultaneously   with  this  Agreement  ("Escrow
          Agreement").

     (c)  Closing.  Subject to the  satisfaction  of the conditions set forth in
          Sections 7 and 8 hereof, the Closing of the transactions  contemplated
          by this  Agreement  shall  take place  when (i)  Seller  delivers  the
          Debentures  to the Escrow  Agent,  as  defined in an Escrow  Agreement
          among  Buyer,  Seller and the Escrow  Agent of even date,  (ii) Seller
          delivers the signed Escrow Agreement and accompanying  documents,  and
          (iii)  Buyer  pays  $360,000   towards  the  Purchase  Price  for  the
          Debentures ("Closing Date").

2.   Buyer Representations and Covenants; Access to Information.

     In connection with the purchase and sale of the Debenture, Buyer represents
     and warrants to, and covenants and agrees with Seller as follows:

     (a)  Buyer is not,  and on the closing  date will not be, an  affiliate  of
          Seller;

     (b)  Buyer is an "accredited investor" as defined in Rule 501 of Regulation
          D promulgated under the 1933 Act, and is purchasing the Shares for its
          own account and Buyer is  qualified  to purchase  the Shares under the
          laws of the State of Colorado;

     (c)  All offers and sales of any of the  Debentures  by Buyer shall be made
          in compliance  with any applicable  securities  laws of any applicable
          jurisdiction  and in  accordance  with Rule  504,  as  applicable,  of
          Regulation D or pursuant to registration of securities  under the 1933
          Act or pursuant to an exemption from registration;

     (d)  Buyer  understands  that the Debentures  are not registered  under the
          1933 Act and are being  offered and sold to it in reliance on specific
          exemptions  from the  registration  requirements  of Federal and State
          securities  laws,  and that  Seller  is  relying  upon the  truth  and
          accuracy    of   the    representations,    warranties,    agreements,
          acknowledgments  and understandings of Buyer set forth herein in order
          to determine the  applicability of such exemptions and the suitability
          of Buyer and any purchaser from Buyer to acquire the Debentures;

     (e)  Buyer shall comply with Rule 504 promulgated under Regulation D;

                                       E-34
<PAGE>

     (f)  Buyer has the full  right,  power  and  authority  to enter  into this
          Agreement and to consummate the transaction  contemplated herein. This
          Agreement has been duly authorized,  validly executed and delivered on
          behalf of Buyer and is a valid and  binding  agreement  in  accordance
          with its  terms,  subject  to  general  principles  of  equity  and to
          bankruptcy  or other laws  affecting  the  enforcement  of  creditors'
          rights generally;

     (g)  The execution and delivery of this Agreement and the  consummation  of
          the purchase of the Debentures and the  transactions  contemplated  by
          this Agreement do not and will not conflict with or result in a breach
          by Buyer of any of the terms or provisions of, or constitute a default
          under,   the  articles  of   incorporation   or  by-laws  (or  similar
          constitutive  documents) of Buyer or any indenture,  mortgage, deed of
          trust,  or other material  agreement or instrument to which Buyer is a
          party or by which it or any of its properties or assets are bound,  or
          any existing  applicable  law, rule or regulation of the United States
          or any State thereof or any  applicable  decree,  judgment or order of
          any  Federal  or  State  court,  Federal  or  State  regulatory  body,
          administrative  agency or other United States governmental body having
          jurisdiction over buyer or any of its properties or assets;

     (h)  All  invitations,  offers  and sales of or in  respect  of, any of the
          Debentures,  by Buyer and any  distribution  by Buyer of any documents
          relating  to  any  invitation,  offer  or  sale  by it of  any  of the
          Debentures will be in compliance with applicable laws and regulations,
          will be made in such a manner that no prospectus  need be filed and no
          other filing need be made by Seller with any  regulatory  authority or
          stock  exchange in any country or any  political  sub-division  of any
          country,  and Buyer will make no  misrepresentations  nor omissions of
          material fact in the invitation, offer or resale of the Debentures;

     (i)  The Buyer (or others for whom it is  contracting  hereunder)  has been
          advised  to consult  its own legal and tax  advisors  with  respect to
          applicable resale  restrictions and applicable tax  considerations and
          it  (or  others  for  whom  it is  contracting  hereunder)  is  solely
          responsible  (and  the  Seller  is  not in any  way  responsible)  for
          compliance  with  applicable  resale  restrictions  and applicable tax
          legislation;

     (j)  Buyer  understands  that no  Federal  or State or  foreign  government
          agency has passed on or made any  recommendation or endorsement of the
          Debentures;

     (k)  Buyer has had an  opportunity  to  receive  and  review  all  material
          information  and  financial  data and to discuss  with the officers of
          Seller, all matters relating to the securities,  financial  condition,
          operations  and prospects of Seller and any questions  raised by Buyer
          have been answered to Buyer's satisfaction.

     (l)  Buyer  acknowledges that the purchase of the Debentures involve a high
          degree of risk.  Buyer has such  knowledge and experience in financial
          and business  matters that it is capable of evaluating  the merits and
          risks  of  purchasing  the  Debentures.  Buyer  understands  that  the
          Debentures are not being  registered  under the 1933 Act, or under any
          state  securities  laws, and  therefore,  Buyer must bear the economic
          risk of this investment for an indefinite period of time;

     (m)  Buyer  is  not a  "10-percent  Shareholder"  (as  defined  in  Section
          871(h)(3)(B)of  the  U.S.  Internal  Revenue  Code)  of  Seller;  and

     (n)  Buyer  acknowledges and agrees that the  transactions  contemplated by
          this  Agreement  have taken place  solely and  exclusively  within the
          State of Colorado.

                                       E-35
<PAGE>

3.   Seller Representations and Covenants.

     (a)  Seller is a corporation  duly organized and validly existing under the
          laws of the State of Delaware and is in good standing  under such laws
          with its principal  executive office located in the State of Delaware.
          The Seller has all  requisite  corporate  power and  authority to own,
          lease and  operate  its  properties  and  assets,  and to carry on its
          business  as  presently  conducted.  The  Seller  is  qualified  to do
          business as a foreign  corporation in each  jurisdiction  in which the
          ownership of its property or the nature of its business  requires such
          qualification,  except  where  failure to so qualify  would not have a
          material adverse effect on the Seller.

     (b)  There are  1,000,000  shares of Seller's  common  stock,  no par value
          ("Common Stock"), authorized and 1,000 outstanding as of September 11,
          2000.  All issued  and  outstanding  shares of Common  Stock have been
          authorized and validly  issued and are fully paid and  non-assessable.
          Seller intends to increase Seller's  authorized  capital to 25,000,000
          shares or more as soon as practicable  following the execution of this
          subscription agreement.

     (c)  The  execution  and  delivery  of  this  Agreement  do  not,  and  the
          consummation  of  the  transactions   contemplated  hereby  will  not,
          conflict  with,  or result in any  violation  of, or default  (with or
          without notice or lapse of time, or both),  or give rise to a right of
          termination,  cancellation  or  acceleration of any obligation or to a
          loss of a material  benefit,  under,  any provision of the Articles of
          Incorporation,  and  any  amendments  thereto,  By-Laws,  Stockholders
          Agreements  and any  amendments  thereto of the Seller or any material
          mortgage,  indenture, lease or other agreement or instrument,  permit,
          concession,  franchise, license, judgment, order, decree, statute, law
          ordinance, rule or regulation applicable to the Seller, its properties
          or assets.  There is no action,  suit or proceeding pending, or to the
          knowledge  of the Seller,  threatened  against the Seller,  before any
          court or arbitrator or any government body, agency or official,  which
          would  have a  material  adverse  affect  on  Seller's  operations  or
          financial condition.

     (d)  The Seller is not subject to the reporting requirements of Sections 13
          or 15(d) of the  Securities  and  Exchange  Act, is not an  investment
          company or a  developmental  stage company that either has no specific
          business plan or no purpose.  The  Debentures  and common stock issued
          upon conversion  ("Shares") when issued,  will be issued in compliance
          with all applicable U.S. federal and state securities laws. The Seller
          understands  and  acknowledges  that, in certain,  circumstances,  the
          issuance of the Shares could dilute the  ownership  interests of other
          stockholders  of the Seller.  The execution and delivery by the Seller
          of this  Agreement and the issuance of the Shares will not  contravene
          or  constitute  a default  under any  provision of  applicable  law or
          regulation.  The  Seller is in  compliance  with and  conforms  to all
          statutes, laws, ordinances,  rules, regulations,  orders, restrictions
          and all other legal requirements of any domestic or foreign government
          or any instrumentality thereof having jurisdiction over the conduct of
          its businesses or the ownership of its properties

                                       E-36
<PAGE>

     (e)  There is no fact  known  to the  Seller  that  has not  been  publicly
          disclosed  by the Seller or  disclosed  in writing to the Buyer  which
          could  reasonably be expected to have a material adverse effect on the
          condition  (financial  or  otherwise)  or in  the  earnings,  business
          affairs,  properties or assets of the Seller,  or could  reasonably be
          expected to materially and adversely  affect the ability of the Seller
          to perform its obligations pursuant to this Agreement. The information
          furnished by the Seller to Buyer for purposes of or in connection with
          this  Agreement  or any  transaction  contemplated  hereby,  does  not
          contain  any  untrue  statement  of  material  fact or omit to state a
          material  fact  necessary  in order to make the  statements  contained
          therein,  in light of the circumstances under which they are made, not
          misleading.

     (f)  No consent,  approval or authorization of or designation,  declaration
          or filing with any governmental authority on the part of the Seller is
          required in connection  with the valid  execution and delivery of this
          Agreement,  or the offer, sale or issuance of the Debentures or Common
          Stock,  or the  consummation  of any  other  transaction  contemplated
          hereby,  except  the  filing  with  the SEC of Form D and  appropriate
          qualification in the State of Colorado.

     (g)  There is no action,  proceeding or  investigation  pending,  or to the
          Seller's knowledge, threatened, against the Seller which might result,
          either  individually  or in the  aggregate,  in any  material  adverse
          change in the business, prospects,  conditions,  affairs or operations
          of  the  Seller.  The  Seller  is not a  party  to or  subject  to the
          provisions of any order, writ,  injunction,  judgment or decree of any
          court or  government  agency or  instrumentality.  There is no action,
          suit proceeding or investigation  by the Seller  currently  pending or
          which the Seller intends to initiate. The SEC has not issued any order
          suspending  trading in the Seller's Common Stock and the Seller is not
          under  investigation  by  the  SEC  or  the  National  Association  of
          Securities Dealers, and there are no proceedings pending or threatened
          before either regulatory body.

     (h)  There are no other  material  outstanding  debt or  equity  securities
          presently convertible into Common Stock.

     (i)  The Seller  has not sold any  securities  within  the 12 month  period
          prior to the date the Common  Stock was first  offered in  reliance on
          any exemption under Section 3(b) of the 1933 Act,  Regulation D or its
          rules or in violation of Section 5(a) of the 1933 Act.

     (j)  The  issuance,  sale and  delivery  of the  Debentures  have been duly
          authorized by all required corporate action on the part of the Seller,
          and when  issued,  sold and  delivered  in  accordance  with the terms
          hereof and thereof for the consideration expressed herein and therein,
          will be duly and validly issued,  fully paid and  non-assessable.  The
          Common Stock  issuable upon  conversion of the Debenture has been duly
          and validly reserved for issuance and upon issuance in accordance with
          the terms of the Debentures,  shall be duly and validly issued,  fully
          paid,  and  non-assessable  There  are no  pre-emptive  rights  of any
          shareholder of Seller.

                                       E-37
<PAGE>

     (k)  This  Agreement  has  been  duly  authorized,   validly  executed  and
          delivered on behalf of Seller and is a valid and binding  agreement in
          accordance with its terms, subject to general principles of equity and
          to bankruptcy or other laws  affecting the  enforcement  of creditors'
          rights  generally.  The  Seller  has all  requisite  right,  power and
          authority to execute and deliver this  Agreement and to consummate the
          transactions  contemplated hereby. All corporate action on the part of
          the  Seller,   its  directors  and  shareholders   necessary  for  the
          authorization,  execution,  delivery and performance of this Agreement
          and the  Debentures  has been taken.  Upon their issuance to the Buyer
          and  delivery to the Escrow  Agent,  as defined in and pursuant to the
          Escrow   Agreement,   the  Debentures   will  be  validly  issued  and
          nonassessable, and will be free of any liens or encumbrances.

     (l)  Seller  acknowledges and agrees that the transactions  contemplated by
          this the Agreement have taken place solely and exclusively  within the
          State of Colorado.

4.   Exemption; Reliance on Representations. Buyer understands that the offerand
     sale of the Securities are not being  registered under the 1933 Act. Seller
     and Buyer are relying on the rules governing offers and sales made pursuant
     to Rule 504  promulgated  under  Regulation  D. The  offer  and sale of the
     Shares are made solely within the State and jurisdiction of Colorado.

5.   Transfer Agent Instructions.

     (a)  Debentures. Upon the conversion of the Debentures, the Buyer or holder
          shall give a notice of  conversion  to the Seller and the Seller shall
          instruct  its  transfer  agent  to  issue  one  or  more  Certificates
          representing  that  number of shares of Common  Stock  into  which the
          Debenture  or  Debentures  are  convertible  in  accordance  with  the
          provisions  regarding  conversion  set forth in  Exhibit A. The Seller
          shall act as Debenture  Registrar  and shall  maintain an  appropriate
          ledger  containing  the  necessary  information  with  respect to each
          Debenture.

     (b)  Common  Stock  to be  Issued  Without  Restrictive  Legend.  Upon  the
          conversion of any Debenture,  Seller shall instruct  Seller's transfer
          agent to issue Stock  Certificates  up to the total of the "Conversion
          Amount" (as defined in the  Debenture)  and any "Interest  Shares" (as
          defined in the Debenture)  without  restrictive  legend in the name of
          the Buyer (or its nominee) and in such  denominations  to be specified
          at  conversion  representing  the  number of  shares  of Common  Stock
          issuable upon such conversion,  as applicable.  The Common Stock shall
          be immediately freely transferable on the books and records of Seller.
          Seller shall also  instruct its attorney to issue and render any legal
          opinion  which is required at any time by Seller's  transfer  agent to
          permit Seller's transfer agent to issue any and all Stock Certificates
          without a restrictive legend as required by this Agreement.

6.   Registration.  If upon  conversion of the Debentures  effected by the Buyer
     pursuant to the terms of this Agreement or payment of interest  pursuant to
     the Debenture the Seller fails to issue  certificates  for shares of Common
     Stock issuable upon such conversion  ("Underlying  Shares") or the Interest
     Shares,  as defined in Section 4(b) of the Debenture,  to the Buyer bearing
     no restrictive legend for any reason, then the Seller shall be required, at
     the  request  of the  Buyer and at the  Seller's  expense,  to  effect  the
     registration of the Underlying  Shares and/or Interest Shares issuable upon
     conversion  of the  Debentures  and payment of  interest  under the Act and
     relevant  Blue Sky laws as promptly as is  practicable.  The Seller and the
     Buyer shall  cooperate in good faith in connection  with the furnishings of
     information  required  for such  registration  and the taking of such other
     actions as may be legally or commercially necessary in order to effect such
     registration. The Seller shall file such a registration statement within 30
     days of Buyer's  demand and shall use its good  faith  diligent  efforts to
     cause  such   registration   statement  to  become  effective  as  soon  as

                                       E-38
<PAGE>

     practicable thereafter. Such good faith diligent efforts shall include, but
     not be limited to,  promptly  responding to all comments  received from the
     staff of the SEC, providing Buyer's counsel with a contemporaneous  copy of
     all written communications from and to the staff of the SEC with respect to
     such registration statement and promptly preparing and filing amendments to
     such  registration  statement which are responsive to the comments received
     from the staff of the SEC. Once  declared  effective by the SEC, the Seller
     shall  cause such  registration  statement  to remain  effective  until the
     earlier of (i) the sale by the Buyer of all Underlying Shares registered or
     (ii) 120 days after the effective date of such registration  statement.  In
     the event the Seller  undertakes  to file a  Registration  Statement  on in
     connection  with  the  Common  Stock,   upon  the   effectiveness  of  such
     Registration, Buyer shall have the option to sell the Common Stock pursuant
     thereto.

7.   Delivery  Instructions.  The Debentures being purchased hereunder,  and the
     Purchase  Price,  shall be delivered  to the Escrow  Agent  pursuant to the
     Escrow Agreement.

8.   Conditions To Seller's  Obligation To Sell. Seller's obligation to sell the
     Debentures is conditioned upon:

     (a)  The receipt and  acceptance by Seller of this Agreement as executed by
          Buyer.

     (b)  All of the  representations  and warranties of the Buyer  contained in
          this Agreement  shall be true and correct on the Closing Date with the
          same force and effect as if made on and as of the  Closing  Date.  The
          Buyer  shall  have  performed  or  complied  with all  agreements  and
          satisfied all conditions on its part to be performed, complied with or
          satisfied at or prior to the Closing Date.

     (c)  No  order  asserting  that  the  transactions   contemplated  by  this
          Agreement  are  subject to the  registration  requirements  of the Act
          shall have been issued, and no proceedings for that purpose shall have
          been commenced or shall be pending or, to the knowledge of the Seller,
          be  contemplated.  No stop order suspending the sale of the Debentures
          or Common Stock shall have been issued,  and no  proceedings  for that
          purpose  shall  have been  commenced  or shall be  pending  or, to the
          knowledge of the Seller, be contemplated.

9.   Conditions  To  Buyer's  Obligation  To  Purchase.  Buyer's  obligation  to
     purchase the Debentures is conditioned upon:

     (a)  The confirmation of receipt and acceptance by Seller of this Agreement
          as evidenced by  execution  of this  Agreement of the duly  authorized
          officer of Seller.

     (b)  Delivery  of the  Debentures  and the Escrow  Agreement  to the Escrow
          Agent.

10.  No Shareholder Approval and No Dilution.

     (a)  Seller  hereby agrees that from the Closing Date until the issuance of
          Common Stock upon the  conversion of the  Debentures,  Seller will not
          take  any  action  which  would  require  Seller  to seek  shareholder
          approval of such issuance unless such shareholder approval is required
          by law or  regulatory  body  (including  but not limited to the NASDAQ
          Stock Market,  Inc.) as a result of the issuance of the  Debentures or
          Common Stock hereunder.

                                       E-39
<PAGE>

     (b)  Provided the Debentures,  or any Seller Debentures from a series which
          predate the Debentures  remain  outstanding and unpaid, or if there is
          any portion of any such Debentures  which have not been converted into
          the Seller's Common Stock, then the Seller shall not split nor reverse
          split the Common Stock,  nor  consolidate  the  outstanding  number of
          shares of Common  Stock into a small number of shares,  nor  otherwise
          take any action,  directly or indirectly,  which would have a material
          adverse  effect on the value of the Debentures or the trading price of
          the Common Stock.

     (c)  Upon (i) a transfer of all or  substantially  all of the assets of the
          Seller to any  person  in a single  transaction  or series of  related
          transactions,  or (ii) a consolidation,  merger or amalgamation of the
          Seller  with or into  another  person or entity in which the Seller is
          not the surviving entity (other than a merger which is effected solely
          to change the jurisdiction of incorporation of the Company and results
          in a reclassification, conversion or exchange of outstanding shares of
          Common  Stock  solely into shares of Common  Stock) (each of items (i)
          and (ii) being referred to as a "Sale Event"), then, in each case, the
          Seller  shall,  upon  request  of any  Holder,  redeem  the  Debenture
          registered  in the  name  of  such  Holder  in  cash  for  125% of the
          principal amount, plus accrued but unpaid interest through the date of
          redemption,  or at the election of the Holder, such Holder may convert
          the  unpaid  principal  amount of such  Debenture  (together  with the
          amount of accrued but unpaid  interest) into shares of Common Stock of
          the  surviving  entity  at the  Conversion  Price as set  forth in the
          Debenture.

     (d)  In case  of any  reclassification,  capital  reorganization  or  other
          change or exchange of  outstanding  shares of the Common Stock,  or in
          case of any consolidation or merger of the Seller with or into another
          corporation  (other than a consolidation or merger in which the Seller
          is the  continuing  corporation  and  which  does  not  result  in any
          reclassification,   capital   reorganization   or  other   change   of
          outstanding  shares of Common Stock), the Seller shall cause effective
          provision to be made so that the Purchaser or Holder of the Debenture,
          as the case may be, shall have the right thereafter, by exercising the
          Debenture, to purchase the kind and number of shares of stock or other
          securities  or  property   (including   cash)   receivable  upon  such
          reclassification,    capital    reorganization    or   other   change,
          consolidation  or merger by a holder of the number of shares of Common
          Stock that could have been  purchased  upon  exercise of the Debenture
          and at  the  same  Conversion  Price,  as  defined  in the  Debenture,
          immediately prior to such reclassification,  capital reorganization or
          other change,  consolidation or merger. The foregoing provisions shall
          similarly    apply   to    successive    reclassifications,    capital
          reorganizations  and other  changes  of  outstanding  shares of Common
          Stock  and  to   successive   consolidations   or   mergers.   If  the
          consideration  received by the  holders of Common  Stock is other than
          cash,  the value shall be as  determined  by the Board of Directors of
          the Seller or successor person or entity acting in good faith.

                                       E-40
<PAGE>

11.  Miscellaneous.

     (a)  This  Agreement  together  with the  Debenture  and Escrow  Agreement,
          constitutes  the entire  agreement  between the  parties,  and neither
          party  shall be  liable  or bound to the  other in any  manner  by any
          warranties,  representations  or covenants  except as specifically set
          forth herein.  Any previous agreement among the parties related to the
          transactions  described  herein is  superseded  hereby.  The terms and
          conditions  of this  Agreement  shall  inure to the  benefit of and be
          binding  upon the  restrictive  successors  and assigns of the parties
          hereto. Nothing in this Agreement,  express or implied, is intended to
          confer  upon any  party,  other  than the  parties  hereto,  and their
          respective successors and assigns, any rights,  remedies,  obligations
          or  liabilities  under  or by  reason  of this  Agreement,  except  as
          expressly provided herein.

     (b)  Buyer is an  independent  contractor  and is not the agent of  Seller.
          Buyer is not  authorized to bind Seller or to make any  representation
          or warranties on behalf of Seller.

     (c)  All  representations  and  warranties  contained in this  Agreement by
          Seller  and  Buyer  shall  survive  the  closing  of the  transactions
          contemplated by this Agreement.

     (d)  This  Agreement  shall be  construed  in  accordance  with the laws of
          Colorado  applicable  to  contracts  made and  wholly to be  performed
          within the State of Colorado and shall be binding upon the  successors
          and assigns of each party  hereto.  Buyer and Seller  hereby  mutually
          waive trial by jury and consent to exclusive jurisdiction and venue in
          the courts of the State of Colorado. At Buyer's election,  any dispute
          between the parties may be  arbitrated  rather than  litigated  in the
          courts,  before  the  arbitration  board of the  American  Arbitration
          Association  in Denver and pursuant to its rules.  Upon demand made by
          the Buyer to the Seller, Seller agrees to submit to and participate in
          such arbitration. This Agreement may be executed in counterparts,  and
          the  facsimile   transmission  of  an  executed  counterpart  to  this
          Agreement shall be effective as an original.

     (e)  Seller  agrees to indemnify  and hold Buyer  harmless from any and all
          claims,  damages and  liabilities  arising from Seller's breach of its
          representations and/or covenants set forth herein.

     (f)  Buyer agrees to indemnify  and hold Seller  harmless  from any and all
          claims,  damages and  liabilities  arising from Buyer's  breach of its
          representations and warranties set forth in this Agreement.

     (g)  Seller  shall filed a Form D with the  Commission  upon the Closing of
          this transaction.

                                       E-41
<PAGE>

     IN  WITNESS  WHEREOF, the undersigned has executed this Agreement as of the
date  first  set  forth  above.

     Official  Signatory  of  Seller:

ACCESS  WORLD  TELCOM
&  TECHNOLOGIES  INC.

     By:/s/ Armand Ventura
       Armand  Ventura
       Title:  President

Accepted  this  11th  day  of  September,  2000

     Official  Signatory  of  Buyer:

     LOUVRE  INVESTORS  LLC

     By:/s/ Nick Dominijanni

     YELLOW  STREAM  COMPANY  LLC

     By:/s/ Donna Shortt

     CARLSBAD  CAPITAL  LLC

     By:/s/ Nick Dominijanni

                                       E-42
<PAGE>

                      ASSIGNMENT AND ASSUMPTION AGREEMENT
                       -----------------------------------

     ASSIGNMENT  AND ASSUMPTION AGREEMENT dated this 25th day of September, 2000
between  Access  World  Telcom  &  Technologies  Inc.  ("Assignor") and Saratoga
International  Holdings  Corp.  ("Assignee").

     WHEREAS:

A.   Assignor  has  sold  its  8%  Series  A  Senior  Subordinated   Convertible
     Redeemable  Debentures to Assignee having an aggregate  original  principal
     face amount of One Million  United States  dollars  $1,000,000  (singly,  a
     "Debenture," and collectively, the "Debentures"); and

B.   Assignee has exchanged  its shares with the shares of Assignor  pursuant to
     an  Agreement   and  Plan  of  Merger  dated  as  of  September   25,  2000
     ("Agreement"),  and  Assignor  has  become a  wholly  owned  subsidiary  of
     Assignee; and

C.   Assignor  wishes to assign the  Debentures  to  Assignee  and  Assignee  is
     willing  to assume  the  obligations  of the  Debentures  in  exchange  for
     valuable consideration set forth in the Agreement.

NOW  THEREFORE,  it is agreed that  Assignor  shall  assign and  Assignee  shall
irrevocably and unconditionally  assume all of the conditions and obligations of
a  certain  Securities  Subscription  Agreement,  the  Debentures  and an Escrow
Agreement,  each dated as of August 1, 2000, as if Assignee has entered into and
undertaken all of such obligations at the time these instruments were given, and
shall render full  performance  under such instruments in the place and stead of
Assignor.

Access Telcom & Technologies Inc.          Saratoga International Holdings Corp.
(Assignor)                                 (Assignee)

By: /s/ Armand Ventura                      By: /s/ Patrick F. Charles
    Armand  Ventura                             Patrick  F.  Charles,  President

ACCEPTED  AND  ACKNOWLEDGED:

Louvre  Investors,  LLC

By:/s/ Nick Dominijanni

Yellow  Stream  Company,  LLC

By: /s/ Donna Shortt

Carlsbad  Capital,  LLC

By: /s/ Nick Dominijanni

                                       E-43Exhibit 4.2
                                   DEBENTURES

THE  SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH
THE  UNITED  STATES  SECURITIES  AND  EXCHANGE  COMMISSION  OR  THE  SECURITIES
COMMISSION  OF  ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY
SECTION  3(B)  OF  THE  SECURITIES  ACT  OF  1933, AS AMENDED, AND THE RULES AND
REGULATIONS  PROMULGATED THEREUNDER (THE "1933 ACT"), AND RULE 504 OF REGULATION
D  PROMULGATED  THEREUNDER.

THIS  INFORMATION  IS  DISTRIBUTED  PURSUANT TO AN EXEMPTION FOR SMALL OFFERINGS
UNDER  THE  RULES  OF THE COLORADO SECURITIES DIVISION.  THE SECURITIES DIVISION
HAS  NEITHER REVIEWED OR APPROVED ITS FORM OR CONTENT.  THE SECURITIES DESCRIBED
MAY  ONLY  BE  PURCHASED BY "ACCREDITED INVESTORS" AS DEFINED BY RULE 504 OF SEC
REGULATION  D  AND  THE  RULES  OF  THE  COLORADO  SECURITIES  DIVISION.

A-001                                                  US  $1,000,000

     PROCESSING  PLUS,  INC.
     -----------------------

     8%  SERIES  A  SENIOR  SUBORDINATED  CONVERTIBLE  REDEEMABLE  DEBENTURES
     DUE  DECEMBER  28,  2002

     THIS  DEBENTURE  of Processing Plus, Inc., a corporation duly organized and
existing  under  the  laws of Florida ("Company"), designated as its 8% Series A
                                        -------
Senior  Subordinated  Convertible  Debentures  Due  December  28,  2002,  in  an
aggregate  principal  face  amount  not  exceeding  One  Million  Dollars  (U.S.
$1,000,000  ), which Debentures are being purchased at 90% of the face amount of
such  Debentures.

     FOR VALUE RECEIVED,  the Company  promises to pay to Carlsbad  Capital LLC<
Louvre  Investors,  LLC and Yellow Stream Company,  LLC, the registered  holders
hereof and its  authorized  successors  and permitted  assigns  ("Holder"),  the
aggregate  principal face of One Million  Dollars (U.S.  $1,000.000) on December
28,  2002  ("Maturity   Date"),  and  to  pay  interest  on  the  principal  sum
outstanding,  at the rate of 8% per annum commencing January 28, 2001 and due in
full at the  Maturity  Date  pursuant  to  paragraph  4(b)  herein.  Accrual  of
outstanding  principal  sum has been made or duly  provided for. The interest so
payable will be paid to the person in whose name this Debenture is registered on
the  records  of  the  Company  regarding  registration  and  transfers  of  the
Debentures  ("Debenture  Register");   provided,  however,  that  the  Company's
obligation to a transferee of this Debenture arises only if such transfer,  sale
or other  disposition is made in accordance with the terms and conditions of the
Securities  Subscription  Agreement  dated as of December  28, 2000  between the
Company and ("Subscription Agreement").  The principal of, and interest on, this
Debenture are payable at the address last appearing on the Debenture Register of
the Company as designated in writing by the Holder hereof from time to time. The
Company will pay the outstanding  principal due upon this Debenture before or on
the Maturity Date, less any amounts  required by law to be deducted or withheld,
to the Holder of this  Debenture by check if paid more than 10 days prior to the
Maturity  Date or by wire  transfer  and  addressed  to such  Holder at the last
address  appearing on the Debenture  Register.  The  forwarding of such check or
wire transfer shall constitute a payment of outstanding  principal hereunder and
shall satisfy and discharge the liability for principal on this Debenture to the
extent of the sum represented by such check or wire transfer.  Interest shall be
payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

                                       E-44
<PAGE>

This Debenture is subject to the following additional provisions:

1.   The  Debentures  are issuable in  denominations  of Five  Thousand  Dollars
     (US$5,000) and integral multiples thereof.  The Debentures are exchangeable
     for  an  equal  aggregate  principal  amount  of  Debentures  of  different
     authorized  denominations,  as  requested by the Holders  surrendering  the
     same,  but not less than U.S.  $5,000.  No service  charge will be made for
     such registration or transfer or exchange, except that Holder shall pay any
     tax or other governmental charges payable in connection therewith.

2.   The Company  shall be entitled to withhold  from all  payments  any amounts
     required to be withheld under the applicable laws.

3.   This Debenture may be transferred or exchanged only in compliance  with the
     Securities  Act of 1933,  as  amended  ("Act")  and  applicable  state  ---
     securities  laws.  Prior to due presentment for transfer of this Debenture,
     the Company and any agent of the Company may treat the person in whose name
     this Debenture is duly  registered on the Company's  Debenture  Register as
     the owner hereof for all other  purposes,  whether or not this Debenture be
     overdue,  and  neither  the Company nor any such agent shall be affected or
     bound by notice to the contrary. Any Holder of this Debenture,  electing to
     exercise  the right of  conversion  set forth in Section  4(a)  hereof,  in
     addition to the requirements set forth in Section 4(a), and any prospective
     transferee of this Debenture, are also required to give the Company written
     confirmation that the Debenture is being converted ("Notice of Conversion")
     in the form  annexed  hereto as  ExhibitI.  The date of receipt  (including
     receipt by telecopy) of such Notice of Conversion  shall be the  Conversion
     Date.

4.    (a) The Holder of this  Debenture is entitled,  at its option,  at any
          time immediately following execution of this Agreement and delivery of
          the Debenture  hereof, to convert all or any amount over $5,000 of the
          principal face amount of this Debenture then  outstanding  into freely
          tradeable  shares of common  stock,  no par  value per  share,  of the
          Company without  restrictive legend of any nature ("Common Stock"), at
          a conversion price ("Conversion Price") for each share of Common Stock
          equal to (i) 70% of the per share price valued in accordance  with the
          book value of the  Company's  shares  which  shall  include but not be
          limited to all assets and good will of the Company and the proceeds of
          this Debenture and any other Debenture issued simultaneously with this
          Debenture  or within 30 days of the  issuance of this  Debenture,  but
          shall not include any liabilities of the Company ("Asset Book Value"),
          or, if the Company or its successor or the assignee of this  Debenture
          is publicly traded on any exchange, (ii) 70% of the lowest closing bid
          price of the Common Stock as reported on the OTC  Electronic  Bulletin
          Board or any  exchange  on  which  the  Company's  shares  are  traded
          ("OTCBB")  for any  trading  day on which a Notice  of  Conversion  is
          received  by the  Company,  provided  such  Notice  of  Conversion  is
          delivered  by fax to the Company  between the hours of 4 P.M.  Eastern
          Standard  or  Daylight  Savings  Time and 7 P.M.  Eastern  Standard or
          Daylight Savings Time, or for the 3 trading days immediately preceding
          the date of  receipt  by the  Company  of each  Notice  of  Conversion
          ("Conversion  Shares").  If the number of resultant  Conversion Shares
          would as a matter of law or pursuant to regulatory  authority  require
          the Company to seek shareholder approval of such issuance, the Company
          shall, as soon as  practicable,  take the necessary steps to seek such
          approval.  Such  conversion  shall  be  effectuated,  by  the  Company
          delivering the Conversion  Shares to the Holder within 7 business days
          of receipt by the Company of the Notice of Conversion. Once the Holder
          has received such  Conversion  Shares,  the Holder shall surrender the
          Debentures  to be converted to the Company,  executed by the Holder of
          this  Debenture  evidencing  such  Holder's  intention to convert this

                                       E-45
<PAGE>

          Debenture or a specified  portion  hereof,  and  accompanied by proper
          assignment  hereof in blank.  Accrued  but  unpaid  interest  shall be
          subject to  conversion.  No  fractional  shares or scrip  representing
          fractions  of shares will be issued on  conversion,  but the number of
          shares issuable shall be rounded to the nearest whole share.

     (b)  Interest at the rate of 8% per annum  shall be paid by issuing  Common
          Stock of the Company as follows: Based on the Asset Book Value, or 70%
          of the lowest closing bid price of the Common Stock as reported on the
          OTC  Electronic  Bulletin Board or any exchange on which the Company's
          shares  are  traded  ("OTCBB")  for  the 3  trading  days  immediately
          preceding  the  date of the  monthly  interest  payment  due  ("Market
          Price"),  the Company shall issue to the Holder shares of Common Stock
          in an  amount  equal to the total  monthly  interest  accrued  and due
          divided by 70% of the Market  Price  ("Interest  Shares").  The dollar
          amount of interest  payable  pursuant to this  paragraph 4(b) shall be
          calculated  based upon the total amount of payments  actually  made by
          the Holder in  connection  with the purchase of the  Debentures at the
          time any  interest  payment is due. If such  payment is made by check,
          interest  shall  accrue  beginning  10 days from the date the check is
          received  by the  Company.  If such  payment is made by wire  transfer
          directly into the Company's  account,  interest shall accrue beginning
          on the date the wire transfer is received by the Company. Common Stock
          issued  pursuant  hereto  shall  be  issued  pursuant  to Rule  504 of
          Regulation  D  in  accordance  with  the  terms  of  the  Subscription
          Agreement.

     (c)  At any time after 90 days the Company  shall have the option to pay to
          the Holder 130% of the principal amount of the Debenture,  in full, to
          the extent  conversion  has not occurred  pursuant to  paragraph  4(a)
          herein,  or pay upon maturity if the Debenture is not  converted.  The
          Company  shall  give the Holder 5 days  written  notice and the Holder
          during such 5 days shall have the option to convert the  Debenture  or
          any part thereof into shares of Common Stock at the  Conversion  Price
          set forth in paragraph 4(a) of this Debenture.

     (c)  Upon (i) a transfer of all or  substantially  all of the assets of the
          Company  to any  person in a single  transaction  or series of related
          transactions,  or (ii) a consolidation,  merger or amalgamation of the
          Company with or into another  person or entity in which the Company is
          not the surviving entity (other than a merger which is effected solely
          to change the jurisdiction of incorporation of the Company and results
          in a reclassification, conversion or exchange of outstanding shares of
          Common  Stock  solely into shares of Common  Stock) (each of items (i)
          and (ii) being referred to as a "Sale Event"), then, in each case, the
          Company  shall,  upon  request of any  Holder,  redeem the  Debentures
          registered  in the  name  of  such  Holder  in  cash  for  130% of the
          principal amount, plus accrued but unpaid interest through the date of
          redemption,  or at the election of the Holder, such Holder may convert
          the  unpaid  principal  amount of this  Debenture  (together  with the
          amount of accrued but unpaid  interest) into shares of Common Stock of
          the surviving entity at the Conversion Price.

     (d)  In case  of any  reclassification,  capital  reorganization  or  other
          change or exchange of  outstanding  shares of the Common Stock,  or in
          case  of any  consolidation  or  merger  of the  Company  with or into
          another corporation (other than a consolidation or merger in which the
          Seller is the continuing  corporation and which does not result in any
          reclassification,   capital   reorganization   or  other   change   of
          outstanding shares of Common Stock), the Company shall cause effective
          provision to be made so that the Holder of this  Debenture  shall have
          the right  thereafter,  by converting this  Debenture,  to purchase or
          convert this  Debenture into the kind and number of shares of stock or
          other  securities or property  (including  cash)  receivable upon such
          reclassification,    capital    reorganization    or   other   change,
          consolidation  or merger by a holder of the number of shares of Common

                                       E-46
<PAGE>

          Stock that could have been  purchased  upon exercise of the Debentures
          and at  the  same  Conversion  Price,  as  defined  in the  Debenture,
          immediately prior to such reclassification,  capital reorganization or
          other change,  consolidation or merger. The foregoing provisions shall
          similarly    apply   to    successive    reclassifications,    capital
          reorganizations  and other  changes  of  outstanding  shares of Common
          Stock  and  to   successive   consolidations   or   mergers.   If  the
          consideration  received by the  holders of Common  Stock is other than
          cash,  the value shall be as  determined  by the Board of Directors of
          the Company or successor person or entity acting in good faith.

5.   No provision of this Debenture  shall alter or impair the obligation of the
     Company, which is absolute and unconditional,  to pay the principal of, and
     interest on, this Debenture at the time,  place, and rate, and in the form,
     herein prescribed.

6.   The Company hereby  expressly  waives demand and  presentment  for payment,
     notice of  non-payment,  protest,  notice of protest,  notice of  dishonor,
     notice of acceleration or intent to accelerate, and diligence in taking any
     action to collect  amounts  called for  hereunder and shall be directly and
     primarily liable for the payment of all sums owing and to be owing hereto.

7.   The  Company  agrees to pay all costs and  expenses,  including  reasonable
     attorneys'  fees,  which may be  incurred by the Holder in  collecting  any
     amount due under this Debenture.

8.   If one or more of the following  described  "Events of Default" shall occur
     and continue for 30 days, unless a different time frame is noted below:

     (a)  The Company  shall  default in the payment of principal or interest on
          this Debenture; or

     (b)  Any of the  representations  or warranties made by the Company herein,
          in the Subscription  Agreement,  or in any certificate or financial or
          other written  statements  heretofore or hereafter  furnished by or on
          behalf of the Company in connection with the execution and delivery of
          this  Debenture  or the  Subscription  Agreement  shall  be  false  or
          misleading  in any  material  respect at the time made or the  Company
          shall violate any covenants in the  Subscription  Agreement  including
          but not limited to Section 5(b) or 10; or

     (c)  The Company shall fail to perform or observe, in any material respect,
          any  other  covenant,   term,  provision,   condition,   agreement  or
          obligation of the Company under this Debenture,  and the  Subscription
          Agreement  and such  failure  shall  continue  uncured for a period of
          thirty (30) days after notice from the Holder of such failure; or

     (d)  The  Company  shall (1) become  insolvent;  (2) admit in  writing  its
          inability  to pay its  debts  generally  as they  mature;  (3) make an
          assignment  for the benefit of creditors or commence  proceedings  for
          its  dissolution;  (4) apply for or  consent to the  appointment  of a
          trustee,  liquidator or receiver for its or for a substantial  part of
          its property or business;  (5) file a petition for bankruptcy  relief,
          consent to the  filing of such  petition  or have filed  against it an
          involuntary petition for bankruptcy relief, all under federal or state
          laws as applicable; or

                                       E-47
<PAGE>

     (e)  A trustee,  liquidator or receiver  shall be appointed for the Company
          or for a  substantial  part of its  property or  business  without its
          consent and shall not be discharged within thirty (30) days after such
          appointment; or

     (f)  Any governmental agency or any court of competent  jurisdiction at the
          instance of any governmental agency shall assume custody or control of
          the whole or any  substantial  portion of the  properties or assets of
          the Company; or

     (g)  Any money judgment, writ or warrant of attachment, or similar process,
          in excess of One Hundred Thousand  ($100,000) Dollars in the aggregate
          shall be entered or filed against the Company or any of its properties
          or other  assets  and shall  remain  unpaid,  unvacated,  unbonded  or
          unstayed  for a period of fifteen (15) days or in any event later than
          five (5) days prior to the date of any proposed sale thereunder; or

     (h)  Bankruptcy, reorganization,  insolvency or liquidation proceedings, or
          other  proceedings  for relief under any bankruptcy law or any law for
          the  relief  of  debtors  shall  be  instituted   voluntarily   by  or
          involuntarily against the Company; or

     (i)  The  Company   shall  have  its  Common   Stock   delisted   from  the
          over-the-counter  market  or other  market  or  exchange  on which the
          Common Stock is or becomes listed or, if the Common Stock trades, then
          trading  in the  Common  Stock  shall be  suspended  for more  than 10
          consecutive days; or

     (j)  The Company  shall not deliver to the Buyer the Common Stock  pursuant
          to paragraph 4 herein  without  restrictive  legend  within 5 business
          days.

Then,  or at any time thereafter, unless cured, and in each and every such case,
unless  such  Event  of  Default shall have been waived in writing by the Holder
(which  waiver  shall not be deemed to be a waiver of any subsequent default) at
the  option  of  the  Holder and in the Holder's sole discretion, the Holder may
consider  this  Debenture  immediately  due  and  payable,  without presentment,
demand,  protest  or  (further)  notice  of  any  kind  (other  than  notice  of
acceleration),  all  of which are hereby expressly waived, anything herein or in
any note or other instruments contained to the contrary notwithstanding, and the
Holder  may  immediately, and without expiration of any period of grace, enforce
any  and  all  of  the Holder's rights and remedies provided herein or any other
rights  or  remedies  afforded  by  law.

9.   This Debenture represents a prioritized obligation of the Company. However,
     no  recourse  shall be had for the  payment  of the  principal  of,  or the
     interest on, this Debenture, or for any claim based hereon, or otherwise in
     respect hereof, against any incorporator, shareholder, officer or director,
     as  such,  past,  present  or  future,  of the  Company  or  any  successor
     corporation, whether by virtue of any constitution, statute or rule of law,
     or by the  enforcement of any assessment or penalty or otherwise,  all such
     liability being, by the acceptance  hereof and as part of the consideration
     for the issue hereof, expressly waived and released.

                                       E-48
<PAGE>

10.  In case any  provision  of this  Debenture  is held by a court of competent
     jurisdiction   to  be   excessive   in  scope  or   otherwise   invalid  or
     unenforceable,  such  provision  shall be adjusted  rather than voided,  if
     possible, so that it is enforceable to the maximum extent possible, and the
     validity and  enforceability of the remaining  provisions of this Debenture
     will not in any way be affected or impaired thereby.

11.  This Debenture and the agreements referred to in this Debenture  constitute
     the full and entire understanding and agreement between the Company and the
     Holder with respect to the subject  hereof.  Neither this Debenture nor any
     term hereof may be amended, waived,  discharged or terminated other than by
     a written instrument signed by the Company and the Holder.

12.  This  Debenture  shall be governed by and construed in accordance  with the
     laws of Colorado  applicable  to contracts  made and wholly to be performed
     within the State of Colorado and shall be binding upon the  successors  and
     assigns of each party hereto.  The Holder and the Company  hereby  mutually
     waive trial by jury and consent to exclusive  jurisdiction and venue in the
     courts of the State of Colorado. At Holder's election,  any dispute between
     the parties may be arbitrated  rather than litigated in the courts,  before
     the American  Arbitration  Association in Denver and pursuant to its rules.
     Upon demand made by the Holder to the Company, the Company agrees to submit
     to and participate in such  arbitration.  This Agreement may be executed in
     counterparts,  and the facsimile transmission of an executed counterpart to
     this Agreement shall be effective as an original.

                  {REMAINDER OF PAGE INTENTIONALLY LEFT BLANK}

                                       E-49
<PAGE>

     IN  WITNESS  WHEREOF,  the  Company  has  caused this instrument to be duly
executed  by  an  officer  thereunto  duly  authorized.

Dated:  December  28,  2000

PROCESSING  PLUS,  INC.

     By:/s/ Eugene Retske
        M.  Eugene  Retske
        Title:  President

                                       E-50
<PAGE>

                                   SCHEDULE A
                                   DEBENTURES
                                   ----------

                             AGGREGATE PRINCIPAL
            NAME/ADDRESS     AMOUNT OF DEBENTURES     PURCHASE PRICE
            ------------     --------------------     --------------

Carlsbad  Capital,  LLC
1835  South  Academy  Boulevard
Colorado Springs, Colorado 80916                $333,333     $300,000
                                                --------     --------

Louvre  Investors,  LLC
6547  North  Academy  Boulevard  #P
Colorado Springs, Colorado 80918                $333,333     $300,000
                                                --------     --------

Yellow Stream Company, LLC                      $333,334     $300,000
5004 West 92nd Avenue # 102
Westminster,  Colorado  80031
                                    TOTAL     $1,000,000     $900,000
                                    -----     ----------     --------

                                    DEBENTURE

THE  SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH
THE  UNITED  STATES  SECURITIES  AND  EXCHANGE  COMMISSION  OR  THE  SECURITIES
COMMISSION  OF  ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY
SECTION  3(B)  OF  THE  SECURITIES  ACT  OF  1933, AS AMENDED, AND THE RULES AND
REGULATIONS  PROMULGATED THEREUNDER (THE "1933 ACT"), AND RULE 504 OF REGULATION
D  PROMULGATED  THEREUNDER.

THIS  INFORMATION  IS  DISTRIBUTED  PURSUANT TO AN EXEMPTION FOR SMALL OFFERINGS
UNDER  THE  RULES  OF THE COLORADO SECURITIES DIVISION.  THE SECURITIES DIVISION
HAS  NEITHER REVIEWED OR APPROVED ITS FORM OR CONTENT.  THE SECURITIES DESCRIBED
MAY  ONLY  BE  PURCHASED BY "ACCREDITED INVESTORS" AS DEFINED BY RULE 504 OF SEC
REGULATION  D  AND  THE  RULES  OF  THE  COLORADO  SECURITIES  DIVISION.

SPB-001                                             US  $1,000,000

     SARATOGA  INTERNATIONAL  HOLDINGS  CORP.
     ----------------------------------------

8%  SERIES  SPB  SENIOR  SUBORDINATED  CONVERTIBLE  REDEEMABLE  DEBENTURES
     DUE  JANUARY  5,  2003

     THIS  DEBENTURE of Saratoga International, a corporation duly organized and
existing  under  the laws of Nevada ("Company"), designated as its 8% Series SPB
Senior  Subordinated Convertible Debentures Due January 5, 2003, in an aggregate
principal  face  amount  not  exceeding  One Million Dollars (U.S. $1,000,000 ),
which  Debentures  are  being  purchased  at  90%  of  the  face  amount of such
Debentures.

                                       E-51
<PAGE>

     FOR  VALUE  RECEIVED,  the Company promises to pay to Louvre Investors LLC,
Yellow  Stream  Company  LLC  and  Carlsbad  Capital LLC, the registered holders
hereof  and  its  authorized  successors  and permitted assigns, as set forth on
Schedule  A  hereto  ("Holder"),  the  aggregate  principal  face of One Million
Dollars  (U.S.  $1,000.000)  on  January  5,  2003 ("Maturity Date"), and to pay
interest  on  the  principal  sum  outstanding,  at  the  rate  of  8% per annum
commencing  February  5,  2001  and due in full at the Maturity Date pursuant to
paragraph  4(b)  herein.  Accrual  of outstanding principal sum has been made or
duly  provided for.  The interest so payable will be paid to the person in whose
name  this  Debenture  is  registered  on  the  records of the Company regarding
registration  and  transfers of the Debentures ("Debenture Register"); provided,
however,  that the Company's obligation to a transferee of this Debenture arises
only  if such transfer, sale or other disposition is made in accordance with the
terms  and  conditions  of  the  Securities  Subscription  Agreement dated as of
January  5,  2001 between the Company and the Holder ("Subscription Agreement").
The  principal  of,  and  interest on, this Debenture are payable at the address
last appearing on the Debenture Register of the Company as designated in writing
by  the  Holder  hereof from time to time.  The Company will pay the outstanding
principal  due  upon  this  Debenture  before  or on the Maturity Date, less any
amounts  required  by  law  to  be  deducted  or withheld, to the Holder of this
Debenture  by  check  if paid more than 10 days prior to the Maturity Date or by
wire  transfer and addressed to such Holder at the last address appearing on the
Debenture  Register.  The  forwarding  of  such  check  or  wire  transfer shall
constitute  a  payment  of outstanding principal hereunder and shall satisfy and
discharge the liability for principal on this Debenture to the extent of the sum
represented by such check or wire transfer.  Interest shall be payable in Common
Stock  (as  defined  below)  pursuant  to  paragraph  4(b)  herein.

This Debenture is subject to the following additional provisions:

1.   The  Debentures  are issuable in  denominations  of Five  Thousand  Dollars
     (US$5,000) and integral multiples thereof.  The Debentures are exchangeable
     for  an  equal  aggregate  principal  amount  of  Debentures  of  different
     authorized  denominations,  as  requested by the Holders  surrendering  the
     same,  but not less than U.S.  $5,000.  No service  charge will be made for
     such registration or transfer or exchange, except that Holder shall pay any
     tax or other governmental charges payable in connection therewith.

2.   The Company  shall be entitled to withhold  from all  payments  any amounts
     required to be withheld under the applicable laws.

3.   This Debenture may be transferred or exchanged only in compliance  with the
     Securities Act of 1933, as amended ("Act") and applicable  state securities
     laws. Prior to due presentment for transfer of this Debenture,  the Company
     and any  agent of the  Company  may treat  the  person  in whose  name this
     Debenture is duly  registered  on the Company's  Debenture  Register as the
     owner  hereof  for all other  purposes,  whether or not this  Debenture  be
     overdue,  and  neither  the Company nor any such agent shall be affected or
     bound by notice to the contrary. Any Holder of this Debenture,  electing to
     exercise  the right of  conversion  set forth in Section  4(a)  hereof,  in
     addition to the requirements set forth in Section 4(a), and any prospective
     transferee of this Debenture, are also required to give the Company written
     confirmation that the Debenture is being converted ("Notice of Conversion")
     in the form  annexed  hereto as Exhibit  I. The date of receipt  (including
     receipt by telecopy) of such Notice of Conversion  shall be the  Conversion
     Date.

                                       E-52
<PAGE>

4.   (a)  The Holder of this  Debenture is entitled,  at its option,  at any
          time immediately following execution of this Agreement and delivery of
          the Debenture  hereof, to convert all or any amount over $5,000 of the
          principal face amount of this Debenture then  outstanding  into freely
          tradeable  shares of common  stock,  no par  value per  share,  of the
          Company without  restrictive legend of any nature ("Common Stock"), at
          a conversion price ("Conversion Price") for each share of Common Stock
          equal to 70% of the lowest  closing  bid price of the Common  Stock as
          reported on the OTC Electronic Bulletin Board or any exchange on which
          the Company's shares are traded ("OTCBB") for any trading day on which
          a Notice of  Conversion  is received  by the  Company,  provided  such
          Notice of  Conversion  is delivered by fax to the Company  between the
          hours of 4 P.M.  Eastern  Standard or Daylight Savings Time and 7 P.M.
          Eastern  Standard or Daylight  Savings Time, or for the 3 trading days
          immediately  preceding  the date of  receipt  by the  Company  of each
          Notice of Conversion ("Conversion Shares"). If the number of resultant
          Conversion  Shares would as a matter of law or pursuant to  regulatory
          authority  require  the Company to seek  shareholder  approval of such
          issuance,  the  Company  shall,  as  soon  as  practicable,  take  the
          necessary  steps  to seek  such  approval.  Such  conversion  shall be
          effectuated,  as  provided  in a  certain  Escrow  Agreement  executed
          simultaneously  with this  Debenture,  by the Company  delivering  the
          Conversion  Shares to the Holder  within 7 business days of receipt by
          the Company of the Notice of Conversion.  Once the Holder has received
          such  Conversion   Shares,   the  Escrow  Agent  shall  surrender  the
          Debentures  to be converted to the Company,  executed by the Holder of
          this  Debenture  evidencing  such  Holder's  intention to convert this
          Debenture or a specified  portion  hereof,  and  accompanied by proper
          assignment  hereof in blank.  Accrued  but  unpaid  interest  shall be
          subject to  conversion.  No  fractional  shares or scrip  representing
          fractions  of shares will be issued on  conversion,  but the number of
          shares issuable shall be rounded to the nearest whole share.

     (b)  Interest at the rate of 8% per annum  shall be paid by issuing  Common
          Stock of the  Company as follows:  Based on 70% of the lowest  closing
          bid  price of the  Common  Stock  as  reported  on the OTC  Electronic
          Bulletin  Board or any  exchange  on which the  Company's  shares  are
          traded ("OTCBB") for the 3 trading days immediately preceding the date
          of the monthly  interest  payment due  ("Market  Price"),  the Company
          shall issue to the Holder shares of Common Stock in an amount equal to
          the total  monthly  interest  accrued  and due  divided  by 70% of the
          Market  Price  ("Interest  Shares").  The  dollar  amount of  interest
          payable pursuant to this paragraph 4(b) shall be calculated based upon
          the total amount of payments actually made by the Holder in connection
          with the purchase of the  Debentures at the time any interest  payment
          is due.  If such  payment  is made by  check,  interest  shall  accrue
          beginning  10 days from the date the check is received by the Company.
          If such payment is made by wire  transfer  directly into the Company's
          account, interest shall accrue beginning on the date the wire transfer
          is received by the Company.  Common Stock issued pursuant hereto shall
          be issued  pursuant to Rule 504 of Regulation D in accordance with the
          terms of the Subscription Agreement.

     (c)  At any time after 90 days the Company  shall have the option to pay to
          the Holder 130% of the principal amount of the Debenture,  in full, to
          the extent  conversion  has not occurred  pursuant to  paragraph  4(a)
          herein,  or pay upon maturity if the Debenture is not  converted.  The
          Company  shall  give the Holder 5 days  written  notice and the Holder
          during such 5 days shall have the option to convert the  Debenture  or
          any part thereof into shares of Common Stock at the  Conversion  Price
          set forth in paragraph 4(a) of this Debenture.

                                       E-53
<PAGE>

     (c)  Upon (i) a transfer of all or  substantially  all of the assets of the
          Company  to any  person in a single  transaction  or series of related
          transactions,  or (ii) a consolidation,  merger or amalgamation of the
          Company with or into another  person or entity in which the Company is
          not the surviving entity (other than a merger which is effected solely
          to change the jurisdiction of incorporation of the Company and results
          in a reclassification, conversion or exchange of outstanding shares of
          Common  Stock  solely into shares of Common  Stock) (each of items (i)
          and (ii) being referred to as a "Sale Event"), then, in each case, the
          Company  shall,  upon  request of any  Holder,  redeem the  Debentures
          registered  in the  name  of  such  Holder  in  cash  for  130% of the
          principal amount, plus accrued but unpaid interest through the date of
          redemption,  or at the election of the Holder, such Holder may convert
          the  unpaid  principal  amount of this  Debenture  (together  with the
          amount of accrued but unpaid  interest) into shares of Common Stock of
          the surviving entity at the Conversion Price.

     (d)  In case  of any  reclassification,  capital  reorganization  or  other
          change or exchange of  outstanding  shares of the Common Stock,  or in
          case  of any  consolidation  or  merger  of the  Company  with or into
          another corporation (other than a consolidation or merger in which the
          Seller is the continuing  corporation and which does not result in any
          reclassification,   capital   reorganization   or  other   change   of
          outstanding shares of Common Stock), the Company shall cause effective
          provision to be made so that the Holder of this  Debenture  shall have
          the right  thereafter,  by converting this  Debenture,  to purchase or
          convert this  Debenture into the kind and number of shares of stock or
          other  securities or property  (including  cash)  receivable upon such
          reclassification,    capital    reorganization    or   other   change,
          consolidation  or merger by a holder of the number of shares of Common
          Stock that could have been  purchased  upon exercise of the Debentures
          and at  the  same  Conversion  Price,  as  defined  in the  Debenture,
          immediately prior to such reclassification,  capital reorganization or
          other change,  consolidation or merger. The foregoing provisions shall
          similarly    apply   to    successive    reclassifications,    capital
          reorganizations  and other  changes  of  outstanding  shares of Common
          Stock  and  to   successive   consolidations   or   mergers.   If  the
          consideration  received by the  holders of Common  Stock is other than
          cash,  the value shall be as  determined  by the Board of Directors of
          the Company or successor person or entity acting in good faith.

5.   No provision of this Debenture  shall alter or impair the obligation of the
     Company, which is absolute and unconditional,  to pay the principal of, and
     interest on, this Debenture at the time,  place, and rate, and in the form,
     herein prescribed.

6.   The Company hereby  expressly  waives demand and  presentment  for payment,
     notice of  non-payment,  protest,  notice of protest,  notice of  dishonor,
     notice of acceleration or intent to accelerate, and diligence in taking any
     action to collect  amounts  called for  hereunder and shall be directly and
     primarily liable for the payment of all sums owing and to be owing hereto.

7.   The  Company  agrees to pay all costs and  expenses,  including  reasonable
     attorneys'  fees,  which may be  incurred by the Holder in  collecting  any
     amount due under this Debenture.

                                       E-54
<PAGE>

8.   If one or more of the following  described  "Events of Default" shall occur
     and continue for 30 days, unless a different time frame is noted below:

     (a)  The Company  shall  default in the payment of principal or interest on
          this Debenture; or

     (b)  Any of the  representations  or warranties made by the Company herein,
          in the Subscription  Agreement,  or in any certificate or financial or
          other written  statements  heretofore or hereafter  furnished by or on
          behalf of the Company in connection with the execution and delivery of
          this  Debenture  or the  Subscription  Agreement  shall  be  false  or
          misleading  in any  material  respect at the time made or the  Company
          shall violate any covenants in the  Subscription  Agreement  including
          but not limited to Section 5(b) or 10; or

     (c)  The Company shall fail to perform or observe, in any material respect,
          any  other  covenant,   term,  provision,   condition,   agreement  or
          obligation of the Company under this Debenture,  and the  Subscription
          Agreement  and such  failure  shall  continue  uncured for a period of
          thirty (30) days after notice from the Holder of such failure; or

     (d)  The  Company  shall (1) become  insolvent;  (2) admit in  writing  its
          inability  to pay its  debts  generally  as they  mature;  (3) make an
          assignment  for the benefit of creditors or commence  proceedings  for
          its  dissolution;  (4) apply for or  consent to the  appointment  of a
          trustee,  liquidator or receiver for its or for a substantial  part of
          its property or business;  (5) file a petition for bankruptcy  relief,
          consent to the  filing of such  petition  or have filed  against it an
          involuntary petition for bankruptcy relief, all under federal or state
          laws as applicable; or

     (e)  A trustee,  liquidator or receiver  shall be appointed for the Company
          or for a  substantial  part of its  property or  business  without its
          consent and shall not be discharged within thirty (30) days after such
          appointment; or

     (f)  Any governmental agency or any court of competent  jurisdiction at the
          instance of any governmental agency shall assume custody or control of
          the whole or any  substantial  portion of the  properties or assets of
          the Company; or

     (g)  Any money judgment, writ or warrant of attachment, or similar process,
          in excess of One Hundred Thousand  ($100,000) Dollars in the aggregate
          shall be entered or filed against the Company or any of its properties
          or other  assets  and shall  remain  unpaid,  unvacated,  unbonded  or
          unstayed  for a period of fifteen (15) days or in any event later than
          five (5) days prior to the date of any proposed sale thereunder; or

     (h)  Bankruptcy, reorganization,  insolvency or liquidation proceedings, or
          other  proceedings  for relief under any bankruptcy law or any law for
          the  relief  of  debtors  shall  be  instituted   voluntarily   by  or
          involuntarily against the Company; or

     (i)  The  Company   shall  have  its  Common   Stock   delisted   from  the
          over-the-counter  market  or other  market  or  exchange  on which the
          Common Stock is or becomes listed or, if the Common Stock trades, then
          trading  in the  Common  Stock  shall be  suspended  for more  than 10
          consecutive days; or

                                       E-55
<PAGE>

     (j)  The Company  shall not deliver to the Buyer the Common Stock  pursuant
          to paragraph 4 herein  without  restrictive  legend  within 5 business
          days.

Then,  or at any time thereafter, unless cured, and in each and every such case,
unless  such  Event  of  Default shall have been waived in writing by the Holder
(which  waiver  shall not be deemed to be a waiver of any subsequent default) at
the  option  of  the  Holder and in the Holder's sole discretion, the Holder may
consider  this  Debenture  immediately  due  and  payable,  without presentment,
demand,  protest  or  (further)  notice  of  any  kind  (other  than  notice  of
acceleration),  all  of which are hereby expressly waived, anything herein or in
any note or other instruments contained to the contrary notwithstanding, and the
Holder  may  immediately, and without expiration of any period of grace, enforce
any  and  all  of  the Holder's rights and remedies provided herein or any other
rights  or  remedies  afforded  by  law.

9.   This Debenture represents a prioritized obligation of the Company. However,
     no  recourse  shall be had for the  payment  of the  principal  of,  or the
     interest on, this Debenture, or for any claim based hereon, or otherwise in
     respect hereof, against any incorporator, shareholder, officer or director,
     as  such,  past,  present  or  future,  of the  Company  or  any  successor
     corporation, whether by virtue of any constitution, statute or rule of law,
     or by the  enforcement of any assessment or penalty or otherwise,  all such
     liability being, by the acceptance  hereof and as part of the consideration
     for the issue hereof, expressly waived and released.

10.  In case any  provision  of this  Debenture  is held by a court of competent
     jurisdiction   to  be   excessive   in  scope  or   otherwise   invalid  or
     unenforceable,  such  provision  shall be adjusted  rather than voided,  if
     possible, so that it is enforceable to the maximum extent possible, and the
     validity and  enforceability of the remaining  provisions of this Debenture
     will not in any way be affected or impaired thereby.

11.  This Debenture and the agreements referred to in this Debenture  constitute
     the full and entire understanding and agreement between the Company and the
     Holder with respect to the subject  hereof.  Neither this Debenture nor any
     term hereof may be amended, waived,  discharged or terminated other than by
     a written instrument signed by the Company and the Holder.

12.  This  Debenture  shall be governed by and construed in accordance  with the
     laws of Colorado  applicable  to contracts  made and wholly to be performed
     within the State of Colorado and shall be binding upon the  successors  and
     assigns of each party hereto.  The Holder and the Company  hereby  mutually
     waive trial by jury and consent to exclusive  jurisdiction and venue in the
     courts of the State of Colorado. At Holder's election,  any dispute between
     the parties may be arbitrated  rather than litigated in the courts,  before
     the American  Arbitration  Association in Denver and pursuant to its rules.
     Upon demand made by the Holder to the Company, the Company agrees to submit
     to and participate in such  arbitration.  This Agreement may be executed in
     counterparts,  and the facsimile transmission of an executed counterpart to
     this Agreement shall be effective as an original.

                  {REMAINDER OF PAGE INTENTIONALLY LEFT BLANK}

                                       E-56
<PAGE>

     IN  WITNESS  WHEREOF,  the  Company  has  caused this instrument to be duly
executed  by  an  officer  thereunto  duly  authorized.

Dated:  January  5,  2001

SARATOGA  INTERNATIONAL
     HOLDINGS  CORP.

     By:/s/ Patrick F. Charles
     Title:  President

                                       E-57
<PAGE>

                                   SCHEDULE A
                                   DEBENTURES
                                   ----------

                              AGGREGATE PRINCIPAL
            NAME/ADDRESS     AMOUNT OF DEBENTURES     PURCHASE PRICE
            ------------     --------------------     --------------

Carlsbad  Capital,  LLC
1835  South  Academy  Boulevard
Colorado Springs, Colorado 80916           $333,333     $300,000
                                           --------     --------

Louvre  Investors,  LLC
6547  North  Academy  Boulevard  #P
Colorado Springs, Colorado 80918           $333,333     $300,000
                                           --------     --------

Yellow Stream Company, LLC                 $333,334     $300,000
5004 West 92nd Avenue # 102
Westminster,  Colorado  80031
                               TOTAL     $1,000,000     $900,000
                               -----     ----------     --------

                        SECURITIES SUBSCRIPTION AGREEMENT

     THIS  SECURITIES  SUBSCRIPTION  AGREEMENT,  dated  as  of December 28, 2000
("Agreement"),  is  executed  in  reliance  upon the exemption from registration
afforded  by  Rule  504  promulgated  under  Regulation  D by the Securities and
Exchange  Commission  ("SEC"),  under  the  Securities  Act of 1933, as amended.
Capitalized  terms  used herein and not defined shall have the meanings given to
them  in  Rule  504  and  Regulation  D.

     This  Agreement  has  been executed by the undersigned buyers ("Buyer"), to
purchase  the  amounts  set  forth on Schedule A hereto,  in connection with the
private  placement  of 8% Series A Senior Subordinated Convertible Debentures of
Processing  Plus,  Inc., a corporation organized under the laws of Florida, with
executive  offices located at 1227 S. Patrick Drive, Suite 301, Satellite Beach,
Florida  32937  ("Seller").  Buyer hereby represents and warrants to, and agrees
with  Seller:

                                       E-58
<PAGE>

THE  SECURITIES OFFERED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF
ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 3(B) OF
THE  SECURITIES  ACT  OF  1933,  AS  AMENDED,  AND  THE  RULES  AND  REGULATIONS
PROMULGATED  THEREUNDER  (THE  "1933  ACT"),  AND  RULE  504  OF  REGULATION  D
PROMULGATED  THEREUNDER.

THIS  INFORMATION  IS  DISTRIBUTED  PURSUANT TO AN EXEMPTION FOR SMALL OFFERINGS
UNDER  THE  RULES  OF THE COLORADO SECURITIES DIVISION.  THE SECURITIES DIVISION
HAS  NEITHER REVIEWED OR APPROVED ITS FORM OR CONTENT.  THE SECURITIES DESCRIBED
MAY  ONLY  BE  PURCHASED BY "ACCREDITED INVESTORS" AS DEFINED BY RULE 504 OF SEC
REGULATION  D  AND  THE  RULES  OF  THE  COLORADO  SECURITIES  DIVISION.

1.   Agreement to Subscribe; Purchase Price.

     (a)  Subscription.  The undersigned  Buyer hereby subscribes for and agrees
          to purchase the Seller's 8% Series A Senior  Subordinated  Convertible
          Redeemable  Debentures  substantially  in the  form  of the  Debenture
          attached  as  Exhibit  A  hereto  and  having  an  aggregate  original
          principal face amount of One Million United States dollars  $1,000,000
          (singly,  a "Debenture," and collectively,  the  "Debentures"),  at an
          aggregate  purchase price of 90% of the face amount of such Debentures
          as set forth in subsection (b) herein.

     (b)  Payment.  The Purchase Price for the Debentures  shall be Nine Hundred
          Thousand  United States Dollars (U.S.  $900,000)  ("Purchase  Price"),
          which shall be payable at closing, pursuant to Section 1(c) herein and
          in accordance with the terms and conditions of Section 11 below.

     (c)  Closing.  Subject to the  satisfaction  of the conditions set forth in
          Sections  7,  8  and  11  below,   the  Closing  of  the  transactions
          contemplated by this Agreement shall take place ("Closing  Date") when
          (i) Seller delivers the Debentures to the Buyer,  (ii) Seller delivers
          all   accompanying   transaction   documents   including   appropriate
          resolutions  of its Board of Directors,  and (iii) Buyer pays $135,000
          towards  the  Purchase  Price for the  Debentures  ("Initial  Purchase
          Price").

                                       E-59
<PAGE>

     2.   Buyer Representations and Covenants; Access to Information.

In connection with the purchase and sale of the Debentures, Buyer represents and
warrants to, and covenants and agrees with Seller as follows:

          (a)  Buyer is not,  and on the closing  date will not be, an affiliate
               of Seller;

          (b)  Buyer  is an  "accredited  investor"  as  defined  in Rule 501 of
               Regulation D  promulgated  under the 1933 Act, and is  purchasing
               the Shares for its own account and Buyer is qualified to purchase
               the Shares under the laws of the State of Colorado;

          (c)  All offers and sales of any of the  Debentures  by Buyer shall be
               made in compliance  with any  applicable  securities  laws of any
               applicable  jurisdiction  and in  accordance  with Rule  504,  as
               applicable,  of  Regulation  D or  pursuant  to  registration  of
               securities  under the 1933 Act or pursuant to an  exemption  from
               registration;

          (d)  Buyer  understands  that the Debentures are not registered  under
               the 1933 Act and are being  offered and sold to it in reliance on
               specific exemptions from the registration requirements of Federal
               and State  securities  laws,  and that Seller is relying upon the
               truth   and   accuracy   of  the   representations,   warranties,
               agreements, acknowledgments and understandings of Buyer set forth
               herein in order to determine the applicability of such exemptions
               and the  suitability  of Buyer and any  purchaser  from  Buyer to
               acquire the Debentures;

          (e)  Buyer shall comply with Rule 504 promulgated under Regulation D;

          (f)  Buyer has the full right,  power and authority to enter into this
               Agreement and to consummate the transaction  contemplated herein.
               This  Agreement has been duly  authorized,  validly  executed and
               delivered on behalf of Buyer and is a valid and binding agreement
               in accordance  with its terms,  subject to general  principles of
               equity and to bankruptcy or other laws affecting the  enforcement
               of creditors' rights generally;

          (g)  The execution and delivery of this Agreement and the consummation
               of  the  purchase  of  the   Debentures   and  the   transactions
               contemplated  by this Agreement do not and will not conflict with
               or result in a breach by Buyer of any of the terms or  provisions
               of, or constitute a default under,  the articles of incorporation
               or by-laws (or similar  constitutive  documents)  of Buyer or any
               indenture,  mortgage,  deed of trust, or other material agreement
               or  instrument to which Buyer is a party or by which it or any of
               its  properties or assets are bound,  or any existing  applicable
               law, rule or regulation of the United States or any State thereof
               or any  applicable  decree,  judgment  or order of any Federal or
               State court,  Federal or State  regulatory  body,  administrative
               agency  or  other   United   States   governmental   body  having
               jurisdiction over buyer or any of its properties or assets;

          (h)  All invitations, offers and sales of or in respect of, any of the
               Debentures,  by  Buyer  and  any  distribution  by  Buyer  of any
               documents relating to any invitation,  offer or sale by it of any
               of the Debentures  will be in compliance with applicable laws and
               regulations,  will be made in such a  manner  that no  prospectus
               need be filed and no other filing need be made by Seller with any
               regulatory  authority  or stock  exchange  in any  country or any
               political  sub-division  of any  country,  and Buyer will make no
               misrepresentations   nor   omissions  of  material  fact  in  the
               invitation, offer or resale of the Debentures;

          (i)  The Buyer (or others for whom it is  contracting  hereunder)  has
               been  advised  to  consult  its own legal and tax  advisors  with
               respect to applicable  resale  restrictions  and  applicable  tax
               considerations  and it (or  others  for  whom  it is  contracting
               hereunder)  is solely  responsible  (and the Seller is not in any
               way   responsible)   for  compliance   with   applicable   resale
               restrictions and applicable tax legislation;

                                       E-60
<PAGE>

          (j)  Buyer understands that no Federal or State or foreign  government
               agency has passed on or made any recommendation or endorsement of
               the Debentures;

          (k)  Buyer has had an  opportunity  to receive and review all material
               information  and financial  data and to discuss with the officers
               of Seller,  all  matters  relating to the  securities,  financial
               condition,  operations  and prospects of Seller and any questions
               raised by Buyer have been answered to Buyer's satisfaction.

          (l)  Buyer  acknowledges that the purchase of the Debentures involve a
               high degree of risk.  Buyer has such  knowledge and experience in
               financial  and business  matters that it is capable of evaluating
               the  merits  and  risks  of  purchasing  the  Debentures.   Buyer
               understands  that the Debentures are not being  registered  under
               the 1933 Act, or under any state  securities laws, and therefore,
               Buyer  must  bear the  economic  risk of this  investment  for an
               indefinite period of time;

          (m)  Buyer is not a  "10-percent  Shareholder"  (as defined in Section
               871(h)(3)(B) of the U.S. Internal Revenue Code) of Seller; and

          (n)  Buyer acknowledges and agrees that the transactions  contemplated
               by this

Agreement  have taken place solely and exclusively within the State of Colorado.

3.   Seller Representations and Covenants.

     (a)  Seller is a corporation  duly organized and validly existing under the
          laws of the State of Florida and is in good  standing  under such laws
          with its principal  executive  office located in the State of Florida.
          The Seller has all  requisite  corporate  power and  authority to own,
          lease and  operate  its  properties  and  assets,  and to carry on its
          business  as  presently  conducted.  The  Seller  is  qualified  to do
          business as a foreign  corporation in each  jurisdiction  in which the
          ownership of its property or the nature of its business  requires such
          qualification,  except  where  failure to so qualify  would not have a
          material adverse effect on the Seller.

     (b)  There are 10,000,000 shares of Seller's common stock,  $.001 par value
          per share ("Common  Stock"),  authorized  and 1,000  outstanding as of
          December 28, 2000. All issued and  outstanding  shares of Common Stock
          have  been  authorized  and  validly  issued  and are  fully  paid and
          non-assessable.

     (c)  The  execution  and  delivery  of  this  Agreement  do  not,  and  the
          consummation  of  the  transactions   contemplated  hereby  will  not,
          conflict  with,  or result in any  violation  of, or default  (with or
          without notice or lapse of time, or both),  or give rise to a right of
          termination,  cancellation  or  acceleration of any obligation or to a
          loss of a material  benefit,  under,  any provision of the Articles of
          Incorporation,  and  any  amendments  thereto,  By-Laws,  Stockholders
          Agreements  and any  amendments  thereto of the Seller or any material
          mortgage,  indenture, lease or other agreement or instrument,  permit,

                                       E-61
<PAGE>

          concession,  franchise, license, judgment, order, decree, statute, law
          ordinance, rule or regulation applicable to the Seller, its properties
          or assets.  There is no action,  suit or proceeding pending, or to the
          knowledge  of the Seller,  threatened  against the Seller,  before any
          court or arbitrator or any government body, agency or official,  which
          would  have a  material  adverse  affect  on  Seller's  operations  or
          financial condition.

     (d)  The Seller is not subject to the reporting requirements of Sections 13
          or 15(d) of the  Securities  and  Exchange  Act, is not an  investment
          company or a  developmental  stage company that either has no specific
          business plan or no purpose.  The  Debentures  and common stock issued
          upon conversion  ("Shares") when issued,  will be issued in compliance
          with all applicable U.S. federal and state securities laws. The Seller
          understands  and  acknowledges  that, in certain,  circumstances,  the
          issuance of the Shares could dilute the  ownership  interests of other
          stockholders  of the Seller.  The execution and delivery by the Seller
          of this  Agreement and the issuance of the Shares will not  contravene
          or  constitute  a default  under any  provision of  applicable  law or
          regulation.  The  Seller is in  compliance  with and  conforms  to all
          statutes, laws, ordinances,  rules, regulations,  orders, restrictions
          and all other legal requirements of any domestic or foreign government
          or any instrumentality thereof having jurisdiction over the conduct of
          its businesses or the ownership of its properties

     (e)  There is no fact  known  to the  Seller  that  has not  been  publicly
          disclosed  by the Seller or  disclosed  in writing to the Buyer  which
          could  reasonably be expected to have a material adverse effect on the
          condition  (financial  or  otherwise)  or in  the  earnings,  business
          affairs,  properties or assets of the Seller,  or could  reasonably be
          expected to materially and adversely  affect the ability of the Seller
          to perform its obligations pursuant to this Agreement. The information
          furnished by the Seller to Buyer for purposes of or in connection with
          this  Agreement  or any  transaction  contemplated  hereby,  does  not
          contain  any  untrue  statement  of  material  fact or omit to state a
          material  fact  necessary  in order to make the  statements  contained
          therein,  in light of the circumstances under which they are made, not
          misleading.

     (f)  No consent,  approval or authorization of or designation,  declaration
          or filing with any governmental authority on the part of the Seller is
          required in connection  with the valid  execution and delivery of this
          Agreement,  or the offer, sale or issuance of the Debentures or Common
          Stock,  or the  consummation  of any  other  transaction  contemplated
          hereby, except the filing with the SEC of Form D.

                                       E-62
<PAGE>

     (g)  There is no action,  proceeding or  investigation  pending,  or to the
          Seller's knowledge, threatened, against the Seller which might result,
          either  individually  or in the  aggregate,  in any  material  adverse
          change in the business, prospects,  conditions,  affairs or operations
          of  the  Seller.  The  Seller  is not a  party  to or  subject  to the
          provisions of any order, writ,  injunction,  judgment or decree of any
          court or  government  agency or  instrumentality.  There is no action,
          suit proceeding or investigation  by the Seller  currently  pending or
          which the Seller intends to initiate. The SEC has not issued any order
          suspending  trading in the Seller's Common Stock and the Seller is not
          under  investigation  by  the  SEC  or  the  National  Association  of
          Securities Dealers, and there are no proceedings pending or threatened
          before either regulatory body.

     (h)  There are no other  material  outstanding  debt or  equity  securities
          presently convertible into Common Stock.

     (i)  The Seller  has not sold any  securities  within  the 12 month  period
          prior to the date the Common  Stock was first  offered in  reliance on
          any exemption under Section 3(b) of the 1933 Act,  Regulation D or its
          rules or in violation of Section 5(a) of the 1933 Act.

     (j)  The  issuance,  sale and  delivery  of the  Debentures  have been duly
          authorized by all required corporate action on the part of the Seller,
          and when  issued,  sold and  delivered  in  accordance  with the terms
          hereof and thereof for the consideration expressed herein and therein,
          will be duly and validly issued,  fully paid and  non-assessable.  The
          Common Stock issuable upon  conversion of the Debentures has been duly
          and validly reserved for issuance and upon issuance in accordance with
          the terms of the Debentures,  shall be duly and validly issued,  fully
          paid,  and  non-assessable  There  are no  pre-emptive  rights  of any
          shareholder of Seller.

     (k)  This  Agreement  has  been  duly  authorized,   validly  executed  and
          delivered on behalf of Seller and is a valid and binding  agreement in
          accordance with its terms, subject to general principles of equity and
          to bankruptcy or other laws  affecting the  enforcement  of creditors'
          rights  generally.  The  Seller  has all  requisite  right,  power and
          authority to execute and deliver this  Agreement and to consummate the
          transactions  contemplated hereby. All corporate action on the part of
          the  Seller,   its  directors  and  shareholders   necessary  for  the
          authorization,  execution,  delivery and performance of this Agreement
          and the Debentures  has been taken.  Upon their issuance to the Buyer,
          the Debentures will be validly issued and  nonassessable,  and will be
          free of any liens or encumbrances.

     (l)  Seller  acknowledges and agrees that the transactions  contemplated by
          this the Agreement have taken place solely and exclusively  within the
          State of Colorado.

4.   Exemption;  Reliance on  Representations.  Buyer understands that the offer
     and sale of the  Securities  are not being  registered  under the 1933 Act.
     Seller and Buyer are relying on the rules  governing  offers and sales made
     pursuant to Rule 504 promulgated  under Regulation D. The offer and sale of
     the Shares are made solely within the State and jurisdiction of Colorado.

                                       E-63
<PAGE>

5.   Transfer Agent Instructions.

     (a)  Debentures. Upon the conversion of the Debentures, the Buyer or holder
          shall give a notice of  conversion  to the Seller and the Seller shall
          instruct  its  transfer  agent  to  issue  one  or  more  Certificates
          representing  that  number of shares of Common  Stock  into  which the
          Debentures are convertible in accordance with the provisions regarding
          conversion  set forth in Exhibit A. The Seller  shall act as Debenture
          Registrar and shall  maintain an  appropriate  ledger  containing  the
          necessary information with respect to each Debenture.

     (b)  Common  Stock  to be  Issued  Without  Restrictive  Legend.  Upon  the
          conversion of any Debenture,  Seller shall instruct  Seller's transfer
          agent to issue Stock  Certificates  up to the total of the "Conversion
          Amount" (as defined in the Debentures)  and any "Interest  Shares" (as
          defined in the Debentures)  without  restrictive legend in the name of
          the Buyer (or its nominee) and in such  denominations  to be specified
          at  conversion  representing  the  number of  shares  of Common  Stock
          issuable upon such conversion,  as applicable.  The Common Stock shall
          be immediately freely transferable on the books and records of Seller.
          Seller shall also  instruct its attorney to issue and render any legal
          opinion  which is required at any time by Seller's  transfer  agent to
          permit Seller's transfer agent to issue any and all Stock Certificates
          without a restrictive legend as required by this Agreement.

6.   Registration.  If upon  conversion of the Debentures  effected by the Buyer
     pursuant to the terms of this Agreement or payment of interest  pursuant to
     the Debentures the Seller fails to issue  certificates for shares of Common
     Stock issuable upon such conversion  ("Underlying  Shares") or the Interest
     Shares, as defined in Section 4(b) of the Debentures,  to the Buyer bearing
     no restrictive legend for any reason, then the Seller shall be required, at
     the  request  of the  Buyer and at the  Seller's  expense,  to  effect  the
     registration of the Underlying  Shares and/or Interest Shares issuable upon
     conversion  of the  Debentures  and payment of  interest  under the Act and
     relevant  Blue Sky laws as promptly as is  practicable.  The Seller and the
     Buyer shall  cooperate in good faith in connection  with the furnishings of
     information  required  for such  registration  and the taking of such other
     actions as may be legally or commercially necessary in order to effect such
     registration. The Seller shall file such a registration statement within 30
     days of Buyer's  demand and shall use its good  faith  diligent  efforts to
     cause  such   registration   statement  to  become  effective  as  soon  as
     practicable thereafter. Such good faith diligent efforts shall include, but
     not be limited to,  promptly  responding to all comments  received from the
     staff of the SEC, providing Buyer's counsel with a contemporaneous  copy of
     all written communications from and to the staff of the SEC with respect to
     such registration statement and promptly preparing and filing amendments to
     such  registration  statement which are responsive to the comments received
     from the staff of the SEC. Once  declared  effective by the SEC, the Seller
     shall  cause such  registration  statement  to remain  effective  until the
     earlier of (i) the sale by the Buyer of all Underlying Shares registered or
     (ii) 120 days after the effective date of such registration  statement.  In
     the event the Seller  undertakes  to file a  Registration  Statement  on in
     connection  with  the  Common  Stock,   upon  the   effectiveness  of  such
     Registration, Buyer shall have the option to sell the Common Stock pursuant
     thereto.

7.   Delivery  Instructions.  The Debentures being purchased  hereunder shall be
     delivered to the Buyer,  and the Purchase Price,  shall be delivered to the
     Seller.

8.   Conditions To Seller's  Obligation To Sell. Seller's obligation to sell the
     Debentures is conditioned upon:

     (a)  The receipt and  acceptance by Seller of this Agreement as executed by
          Buyer.

                                       E-64
<PAGE>

     (b)  All of the  representations  and warranties of the Buyer  contained in
          this Agreement  shall be true and correct on the Closing Date with the
          same force and effect as if made on and as of the  Closing  Date.  The
          Buyer  shall  have  performed  or  complied  with all  agreements  and
          satisfied all conditions on its part to be performed, complied with or
          satisfied at or prior to the Closing Date.

     (c)  No  order  asserting  that  the  transactions   contemplated  by  this
          Agreement  are  subject to the  registration  requirements  of the Act
          shall have been issued, and no proceedings for that purpose shall have
          been commenced or shall be pending or, to the knowledge of the Seller,
          be  contemplated.  No stop order suspending the sale of the Debentures
          or Common Stock shall have been issued,  and no  proceedings  for that
          purpose  shall  have been  commenced  or shall be  pending  or, to the
          knowledge of the Seller, be contemplated.

9.   Conditions  To  Buyer's  Obligation  To  Purchase.  Buyer's  obligation  to
     purchase the Debentures is conditioned upon:

     (a)  The confirmation of receipt and acceptance by Seller of this Agreement
          as evidenced by  execution  of this  Agreement of the duly  authorized
          officer of Seller.

     (b)     Delivery  of  the  Debentures  to  the  Buyer.

10.  No Shareholder Approval and No Dilution.

     (a)  Seller  hereby agrees that from the Closing Date until the issuance of
          Common Stock upon the  conversion of the  Debentures,  Seller will not
          take  any  action  which  would  require  Seller  to seek  shareholder
          approval of such issuance unless such shareholder approval is required
          by law or  regulatory  body  (including  but not limited to the NASDAQ
          Stock Market,  Inc.) as a result of the issuance of the  Debentures or
          Common Stock hereunder.

     (b)  Provided the Debentures,  or any Seller Debentures from a series which
          predate the Debentures  remain  outstanding and unpaid, or if there is
          any portion of any such Debentures  which have not been converted into
          the Seller's Common Stock, then the Seller shall not split nor reverse
          split the Common Stock,  nor  consolidate  the  outstanding  number of
          shares of Common  Stock into a small number of shares,  nor  otherwise
          take any action,  directly or indirectly,  which would have a material
          adverse  effect on the value of the Debentures or the trading price of
          the Common Stock.

     (c)  Upon (i) a transfer of all or  substantially  all of the assets of the
          Seller to any  person  in a single  transaction  or series of  related
          transactions,  or (ii) a consolidation,  merger or amalgamation of the
          Seller  with or into  another  person or entity in which the Seller is
          not the surviving entity (other than a merger which is effected solely
          to change the jurisdiction of incorporation of the Company and results
          in a reclassification, conversion or exchange of outstanding shares of
          Common  Stock  solely into shares of Common  Stock) (each of items (i)
          and (ii) being referred to as a "Sale Event"), then, in each case, the
          Seller  shall,  upon  request  of any  Holder,  redeem  the  Debenture
          registered  in the  name  of  such  Holder  in  cash  for  130% of the
          principal amount, plus accrued but unpaid interest through the date of
          redemption,  or at the election of the Holder, such Holder may convert
          the  unpaid  principal  amount of such  Debenture  (together  with the
          amount of accrued but unpaid  interest) into shares of Common Stock of
          the  surviving  entity  at the  Conversion  Price as set  forth in the
          Debentures.

                                       E-65
<PAGE>

     (d)  In case  of any  reclassification,  capital  reorganization  or  other
          change or exchange of  outstanding  shares of the Common Stock,  or in
          case of any consolidation or merger of the Seller with or into another
          corporation  (other than a consolidation or merger in which the Seller
          is the  continuing  corporation  and  which  does  not  result  in any
          reclassification,   capital   reorganization   or  other   change   of
          outstanding  shares of Common Stock), the Seller shall cause effective
          provision to be made so that the Purchaser or Holder of the Debenture,
          as the case may be, shall have the right thereafter, by exercising the
          Debenture, to purchase the kind and number of shares of stock or other
          securities  or  property   (including   cash)   receivable  upon  such
          reclassification,    capital    reorganization    or   other   change,
          consolidation  or merger by a holder of the number of shares of Common
          Stock that could have been  purchased  upon  exercise of the Debenture
          and at the  same  Conversion  Price,  as  defined  in the  Debentures,
          immediately prior to such reclassification,  capital reorganization or
          other change,  consolidation or merger. The foregoing provisions shall
          similarly    apply   to    successive    reclassifications,    capital
          reorganizations  and other  changes  of  outstanding  shares of Common
          Stock  and  to   successive   consolidations   or   mergers.   If  the
          consideration  received by the  holders of Common  Stock is other than
          cash,  the value shall be as  determined  by the Board of Directors of
          the Seller or successor person or entity acting in good faith.

11.  Payment of the Debentures, Conversions, Security and Demand.

     (a)  Security Resolution.  If Seller shall become a publicly traded company
          by merger or  acquisition  in which  Seller  shall  cease to exist and
          another corporation shall survive the merger, or Seller shall exchange
          its shares  with a publicly  traded  corporation  which shall own more
          than 50% of the issued and outstanding shares of Seller  (collectively
          in either the case of merger or exchange of shares  "Seller  Parent"),
          then  Seller  shall  assign the  Debentures  to the Seller  Parent and
          deliver  to the  Buyer a  resolution  in the form  annexed  hereto  as
          Exhibit B ("Resolution"), instructing the Seller Parent transfer agent
          ("Transfer  Agent")  to issue to Buyer  shares  of the  Seller  Parent
          common stock registered in the name of the Buyer,  without restrictive
          legend as provided  in Section  5(b) of this  Agreement,  in an amount
          equal up to $1,000,000,  or at some lesser amount as the Buyer, in its
          sole  discretion may direct the Transfer  Agent,  at a price per share
          which is 70% of the lowest  closing  bid price of the Seller  Parent's
          common  stock  as  reported  on  the  OTC  Electronic  Bulletin  Board
          ("OTCBB")  or any  exchange  in which the Seller  Parent's  shares are
          traded for any trading day on which a Notice of Conversion is received
          by the Company, provided such Notice of Conversion is delivered by fax
          to the  Company  between  the  hours  of 4 P.M.  Eastern  Standard  or
          Daylight  Savings Time and 7 P.M. Eastern Standard or Daylight Savings
          Time, or for the trading day immediately preceding the date of receipt
          by the Company of each Notice of Conversion  ("Conversion Shares") and
          providing  that the Seller Parent shall not change its transfer  agent
          from the Transfer Agent once established,  without the express written
          consent and directive of the Buyer.  Delivery of the Resolution to the
          Transfer  Agent and the  issuance of shares by the  Transfer  Agent in
          accordance  with the  Resolution  shall not  preclude  the Buyer  from
          exercising any and all other  remedies  available to the Buyer against
          the Seller  Parent and  Seller for a breach of this  Agreement  or the
          Debentures.

                                       E-66
<PAGE>

     (b)  Conversions and Demand.  As provided in paragraph 4 of the Debentures,
          Buyer may give Notice of Conversion of the Debentures to Seller or the
          Seller  Parent,  as the case may be, by  facsimile  to the  number set
          forth in Section 12(h) below.  Conversion of Debentures may take place
          at any time until the Maturity Date of the  Debentures,  as defined in
          the Debentures. As provided in paragraph 4 of the Debentures, within 7
          business  days of receipt of the Notice of  Conversion,  Seller or the
          Seller Parent,  as the case may be, shall deliver to the Buyer,  or to
          an  account   designated  by  Buyer  in  the  Notice  of   Conversion,
          certificates  representing  the  shares of  common  stock to which the
          Buyer shall be entitled by reason of the conversion  ("Certificates").
          Provided  that (i) there is no Event of  Default,  as  defined  in the
          Debentures or this  Agreement,  (ii) the Seller Parent has assumed all
          of the  obligations of the Agreement and the Debentures by virtue of a
          merger with or acquisition of Seller  ("Assumption")  and the publicly
          traded  stock of the  Seller  Parent  trades  on the Over the  Counter
          Electronic  Bulletin  Board,  and (iii) Buyer has converted the entire
          Initial  Purchase Price of the Debentures into the common stock of the
          Seller or the Seller  Parent,  as the case may be,  Seller  Parent may
          demand that Buyer pay the Seller Parent $135,000  towards the purchase
          price of the Debentures  ("First  Demand").  Upon payment of the First
          Demand,  provided that (i) there is no Event of Default, as defined in
          the  Debentures  or this  Agreement  and (ii) Buyer has  converted all
          amounts  paid towards the Purchase  Price of the  Debentures  into the
          common stock of the Seller Parent,  then Seller Parent may demand that
          Buyer pay the Seller Parent  additional  installments of the Debenture
          as  follows:  $180,000  30  business  days  from the date of the First
          Demand,  $225,000 60 business  days from the date of the First Demand,
          $225,000  90  business  days  from the date of the  First  Demand  and
          $135,000  120  business  days  from  the  date  of the  First  Demand.
          ("Additional Demands"). When Buyer has paid a total of $900,000 to the
          Sellers in the  aggregate,  such payments  shall  constitute  full and
          complete payment of the Debenture and complete satisfaction of Buyer's
          obligations  under the Debentures and this Agreement.  Nothing in this
          Section 11(c) shall preclude Buyer from making discretionary  payments
          of the purchase  price of the  Debentures  earlier than required under
          the First  Demand and the  Additional  Demands.  (The First Demand and
          Additional  Demands are sometimes  referred to herein  singularly as a
          "Demand")

     (d)  Liquidated  Damages.  If Seller or the Seller  Parent  fails to timely
          deliver Certificates,  as provided in Section 11(c) above, then Seller
          or the Seller Parent, as the case may be, shall pay Buyer $150 per day
          for each day late in delivering  Certificates  up to and including the
          10th late day,  and $500 per day for each day late in  delivering  the
          Certificates  after  the 10th  late day  ("Liquidated  Damages").  Any
          Liquidated  Damages  incurred by Seller or the Seller  Parent,  as the
          case may be, shall be payable  immediately  and in cash upon demand in
          writing made by Buyer, or their agent, to Seller or the Seller Parent,
          as the case may be. However,  such Liquidated  Damages may be deducted
          from any amounts owed to Seller or the Seller Parent,  as the case may
          be, by the Buyer pursuant to this Section 11. Notwithstanding anything
          contained in this Agreement to the contrary, including but not limited
          to  the  provisions  of  Section  6  regarding  the   registration  of
          restricted Conversion Shares, Seller or the Seller Parent, as the case
          may be, shall be required to pay the  Liquidated  Damages set forth in
          this Section 11(d).

                                       E-67
<PAGE>

     (e)  Bankruptcy.  In the event any proceeding  under the Bankruptcy Laws of
          the  United  States or any  proceedings  under any state  laws for the
          protection  of  debtors  or  creditors,   are  filed,  voluntarily  or
          involuntarily,  by or on behalf of Seller or the Seller Parent, as the
          case may be,  then  Seller or the Seller  Parent,  as the case may be,
          shall  continue to honor all Notices of Conversion  given by Buyer and
          Buyer shall not be  required  to honor any Demand made by Seller,  the
          Seller Parent or the trustee in bankruptcy, as the case may be.

12.  Miscellaneous.

     (a)  Entire  Agreement.   This  Agreement  together  with  the  Debentures,
          constitutes  the entire  agreement  between the  parties,  and neither
          party  shall be  liable  or bound to the  other in any  manner  by any
          warranties,  representations  or covenants  except as specifically set
          forth herein.  Any previous agreement among the parties related to the
          transactions  described  herein is  superseded  hereby.  The terms and
          conditions  of this  Agreement  shall  inure to the  benefit of and be
          binding  upon the  restrictive  successors  and assigns of the parties
          hereto. Nothing in this Agreement,  express or implied, is intended to
          confer  upon any  party,  other  than the  parties  hereto,  and their
          respective successors and assigns, any rights,  remedies,  obligations
          or  liabilities  under  or by  reason  of this  Agreement,  except  as
          expressly provided herein.

     (b)  Independent Contractor.  Buyer is an independent contractor and is not
          the agent of Seller. Buyer is not authorized to bind Seller or to make
          any representation or warranties on behalf of Seller.

     (c)  Survival.   All  representations  and  warranties  contained  in  this
          Agreement  by Seller  and  Buyer  shall  survive  the  closing  of the
          transactions contemplated by this Agreement.

     (d)  Governing  Law. This Agreement  shall be construed in accordance  with
          the laws of Colorado  applicable  to  contracts  made and wholly to be
          performed  within the State of Colorado  and shall be binding upon the
          successors  and assigns of each party hereto.  Buyer and Seller hereby
          mutually waive trial by jury and consent to exclusive jurisdiction and
          venue in the courts of the State of Colorado. At Buyer's election, any
          dispute between the parties may be arbitrated rather than litigated in
          the courts,  before the arbitration board of the American  Arbitration
          Association  in Denver and pursuant to its rules.  Upon demand made by
          the Buyer to the Seller, Seller agrees to submit to and participate in
          such arbitration. This Agreement may be executed in counterparts,  and
          the  facsimile   transmission  of  an  executed  counterpart  to  this
          Agreement shall be effective as an original.

     (e)  Seller  Indemnification.  Seller  agrees to  indemnify  and hold Buyer
          harmless from any and all claims, damages and liabilities arising from
          Seller's  breach of its  representations  and/or  covenants  set forth
          herein.

                                       E-68
<PAGE>

     (f)  Buyer  Indemnification.  Buyer  agrees to  indemnify  and hold  Seller
          harmless from any and all claims, damages and liabilities arising from
          Buyer's breach of its representations and warranties set forth in this
          Agreement.

     (g)  Form D.  Seller  shall  filed  a Form D with  the  Commission  and all
          filings required by the Colorado  Securities Division upon the Closing
          of this transaction.

     (h)  Notices.  All notices,  requests,  consents  and other  communications
          hereunder  shall be in writing,  shall be delivered by hand or sent by
          U.S.  Express Mail,  Fedex or some other  reliable  overnight  courier
          service for next day delivery. Each such notice or other communication
          shall  for all  purposes  of  this  Escrow  Agreement  be  treated  as
          effective or having been given when delivered if delivered personally,
          or, if sent by overnight  express mail  service,  1 day after the same
          has  been  depos-ited  with  the  U.S.  Postal  Service,  Fedex or the
          overnight courier.  All such notices must also be sent by facsimile on
          the same day to the parties as follows:

If  to  Seller:

Processing  Plus,  Inc.
1227  S.  Patrick  Drive,  Suite  301
Satellite  Beach,  Florida  32937
Attention:  M.  Eugene  Retske

If  to  Buyer:
Carlsbad  Capital,  LLC
1835  South  Academy  Boulevard
Colorado  Springs,  Colorado  80916

Louvre  Investors,  LLC
6547  North  Academy  Boulevard  #P
Colorado  Springs,  Colorado  80918

Yellow  Stream  Company,  LLC
5004  West  92nd  Avenue  #  102
Westminster,  Colorado  80031

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

     (j)  Buyer  Fees.  The  legal  and  unaccountable  fees  of  the  Buyer  in
          connection with the preparation of the transaction  documents and sale
          of the Debentures  shall be $30,000 ("Fees") which shall be payable as
          follows: $4,500 upon the execution of this Agreement,  $6,000 upon the
          payment of the first Additional Demand, $7,500 upon the payment of the
          second and third Additional  Demand and $4,500 upon the payment of the
          last Additional  Demand.  The Fees shall be deducted from the purchase
          price proceeds of the Debentures.

                {Remainder of this page intentionally left blank}

                                       E-69
<PAGE>

     IN  WITNESS  WHEREOF, the undersigned has executed this Agreement as of the
date  first  set  forth  above.

     Official  Signatory  of  Seller:
     -------------------------------

     PROCESSING  PLUS,  INC.

     By: /s/ Eugene Retske
     M.  Eugene  Retske

Accepted  this  28th  day  of  December,  2000     Title:  President

     Official  Signatory  of  Buyer:
     ------------------------------

     LOUVRE  INVESTORS  LLC

     By:/s/ Nick Dominijanni

     YELLOW  STREAM  COMPANY  LLC

     By:/s/ Donna Shott

     CARLSBAD  CAPITAL  LLC

     By:/s/ Nick Dominijanni

                                       E-70
<PAGE>

     EXHIBIT  A
     ----------
                                   DEBENTURES

THE  SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH
THE  UNITED  STATES  SECURITIES  AND  EXCHANGE  COMMISSION  OR  THE  SECURITIES
COMMISSION  OF  ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY
SECTION  3(B)  OF  THE  SECURITIES  ACT  OF  1933, AS AMENDED, AND THE RULES AND
REGULATIONS  PROMULGATED THEREUNDER (THE "1933 ACT"), AND RULE 504 OF REGULATION
D  PROMULGATED  THEREUNDER.

THIS  INFORMATION  IS  DISTRIBUTED  PURSUANT TO AN EXEMPTION FOR SMALL OFFERINGS
UNDER  THE  RULES  OF THE COLORADO SECURITIES DIVISION.  THE SECURITIES DIVISION
HAS  NEITHER REVIEWED OR APPROVED ITS FORM OR CONTENT.  THE SECURITIES DESCRIBED
MAY  ONLY  BE  PURCHASED BY "ACCREDITED INVESTORS" AS DEFINED BY RULE 504 OF SEC
REGULATION  D  AND  THE  RULES  OF  THE  COLORADO  SECURITIES  DIVISION.

A-001                                                  US  $1,000,000

     PROCESSING  PLUS,  INC.
     -----------------------

     8%  SERIES  A  SENIOR  SUBORDINATED  CONVERTIBLE  REDEEMABLE  DEBENTURES
     DUE  DECEMBER    ,  2002

     THIS  DEBENTURE  of Processing Plus, Inc., a corporation duly organized and
existing  under  the  laws of Florida ("Company"), designated as its 8% Series A
                                        -------
Senior  Subordinated  Convertible  Debentures  Due  December       , 2002, in an
aggregate  principal  face  amount  not  exceeding  One  Million  Dollars  (U.S.
$1,000,000  ), which Debentures are being purchased at 90% of the face amount of
such  Debentures.

     FOR VALUE RECEIVED,  the Company promises to pay to, the registered holders
hereof and its  authorized  successors  and permitted  assigns  ("Holder"),  the
aggregate principal face of One Million Dollars (U.S.  $1,000.000) on December ,
2002 ("Maturity Date"), and to pay interest on the principal sum outstanding, at
the  rate of 8% per  annum  commencing  January  ,  2001  and due in full at the
Maturity  Date  pursuant  to  paragraph  4(b)  herein.  Accrual  of  outstanding
principal  sum has been made or duly  provided for. The interest so payable will
be paid to the person in whose name this  Debenture is registered on the records
of  the  Company   regarding   registration  and  transfers  of  the  Debentures
("Debenture  Register");  provided,  however, that the Company's obligation to a
transferee  of  this  Debenture  arises  only if such  transfer,  sale or  other
disposition  is  made  in  accordance  with  the  terms  and  conditions  of the
Securities  Subscription  Agreement  dated as of  December  , 2000  between  the
Company and ("Subscription Agreement").  The principal of, and interest on, this
Debenture are payable at the address last appearing on the Debenture Register of
the Company as designated in writing by the Holder hereof from time to time. The
Company will pay the outstanding  principal due upon this Debenture before or on
the Maturity Date, less any amounts  required by law to be deducted or withheld,
to the Holder of this  Debenture by check if paid more than 10 days prior to the
Maturity  Date or by wire  transfer  and  addressed  to such  Holder at the last
address  appearing on the Debenture  Register.  The  forwarding of such check or
wire transfer shall constitute a payment of outstanding  principal hereunder and
shall satisfy and discharge the liability for principal on this Debenture to the
extent of the sum represented by such check or wire transfer.  Interest shall be
payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

                                       E-71
<PAGE>

This Debenture is subject to the following additional provisions:

1.   The  Debentures  are issuable in  denominations  of Five  Thousand  Dollars
     (US$5,000) and integral multiples thereof.  The Debentures are exchangeable
     for  an  equal  aggregate  principal  amount  of  Debentures  of  different
     authorized  denominations,  as  requested by the Holders  surrendering  the
     same,  but not less than U.S.  $5,000.  No service  charge will be made for
     such registration or transfer or exchange, except that Holder shall pay any
     tax or other governmental charges payable in connection therewith.

2.   The Company  shall be entitled to withhold  from all  payments  any amounts
     required to be withheld under the applicable laws.

3.   This Debenture may be transferred or exchanged only in compliance  with the
     Securities Act of 1933, as amended ("Act") and applicable  state securities
     laws. Prior to due presentment for transfer of this Debenture,  the Company
     and any  agent of the  Company  may treat  the  person  in whose  name this
     Debenture is duly  registered  on the Company's  Debenture  Register as the
     owner  hereof  for all other  purposes,  whether or not this  Debenture  be
     overdue,  and  neither  the Company nor any such agent shall be affected or
     bound by notice to the contrary. Any Holder of this Debenture,  electing to
     exercise  the right of  conversion  set forth in Section  4(a)  hereof,  in
     addition to the requirements set forth in Section 4(a), and any prospective
     transferee of this Debenture, are also required to give the Company written
     confirmation that the Debenture is being converted ("Notice of Conversion")
     in the form  annexed  hereto as Exhibit  I. The date of receipt  (including
     receipt by telecopy) of such Notice of Conversion  shall be the  Conversion
     Date.

4.   (a)  The Holder of this  Debenture is entitled,  at its option,  at any
          time immediately following execution of this Agreement and delivery of
          the Debenture  hereof, to convert all or any amount over $5,000 of the
          principal face amount of this Debenture then  outstanding  into freely
          tradeable  shares of common  stock,  no par  value per  share,  of the
          Company without  restrictive legend of any nature ("Common Stock"), at
          a conversion price ("Conversion Price") for each share of Common Stock
          equal to (i) 70% of the per share price valued in accordance  with the
          book value of the  Company's  shares  which  shall  include but not be
          limited to all assets and good will of the Company and the proceeds of
          this Debenture and any other Debenture issued simultaneously with this
          Debenture  or within 30 days of the  issuance of this  Debenture,  but
          shall not include any liabilities of the Company ("Asset Book Value"),
          or, if the Company or its successor or the assignee of this  Debenture
          is publicly traded on any exchange, (ii) 70% of the lowest closing bid
          price of the Common Stock as reported on the OTC  Electronic  Bulletin
          Board or any  exchange  on  which  the  Company's  shares  are  traded
          ("OTCBB")  for any  trading  day on which a Notice  of  Conversion  is
          received  by the  Company,  provided  such  Notice  of  Conversion  is
          delivered  by fax to the Company  between the hours of 4 P.M.  Eastern
          Standard  or  Daylight  Savings  Time and 7 P.M.  Eastern  Standard or
          Daylight  Savings Time, or for the trading day  immediately  preceding
          the date of  receipt  by the  Company  of each  Notice  of  Conversion
          ("Conversion  Shares").  If the number of resultant  Conversion Shares
          would as a matter of law or pursuant to regulatory  authority  require
          the Company to seek shareholder approval of such issuance, the Company
          shall, as soon as  practicable,  take the necessary steps to seek such
          approval.  Such  conversion  shall  be  effectuated,  by  the  Company
          delivering the Conversion  Shares to the Holder within 7 business days
          of receipt by the Company of the Notice of Conversion. Once the Holder
          has received such  Conversion  Shares,  the Holder shall surrender the
          Debentures  to be converted to the Company,  executed by the Holder of
          this  Debenture  evidencing  such  Holder's  intention to convert this
          Debenture or a specified  portion  hereof,  and  accompanied by proper
          assignment  hereof in blank.  Accrued  but  unpaid  interest  shall be
          subject to  conversion.  No  fractional  shares or scrip  representing
          fractions  of shares will be issued on  conversion,  but the number of
          shares issuable shall be rounded to the nearest whole share.

                                       E-72
<PAGE>

     (b)  Interest at the rate of 8% per annum  shall be paid by issuing  Common
          Stock of the Company as follows: Based on the Asset Book Value, or 70%
          of the lowest closing bid price of the Common Stock as reported on the
          OTC  Electronic  Bulletin Board or any exchange on which the Company's
          shares  are  traded  ("OTCBB")  for  the 3  trading  days  immediately
          preceding  the  date of the  monthly  interest  payment  due  ("Market
          Price"),  the Company shall issue to the Holder shares of Common Stock
          in an  amount  equal to the total  monthly  interest  accrued  and due
          divided by 70% of the Market  Price  ("Interest  Shares").  The dollar
          amount of interest  payable  pursuant to this  paragraph 4(b) shall be
          calculated  based upon the total amount of payments  actually  made by
          the Holder in  connection  with the purchase of the  Debentures at the
          time any  interest  payment is due. If such  payment is made by check,
          interest  shall  accrue  beginning  10 days from the date the check is
          received  by the  Company.  If such  payment is made by wire  transfer
          directly into the Company's  account,  interest shall accrue beginning
          on the date the wire transfer is received by the Company. Common Stock
          issued  pursuant  hereto  shall  be  issued  pursuant  to Rule  504 of
          Regulation  D  in  accordance  with  the  terms  of  the  Subscription
          Agreement.

     (c)  At any time after 90 days the Company  shall have the option to pay to
          the Holder 130% of the principal amount of the Debenture,  in full, to
          the extent  conversion  has not occurred  pursuant to  paragraph  4(a)
          herein,  or pay upon maturity if the Debenture is not  converted.  The
          Company  shall  give the Holder 5 days  written  notice and the Holder
          during such 5 days shall have the option to convert the  Debenture  or
          any part thereof into shares of Common Stock at the  Conversion  Price
          set forth in paragraph 4(a) of this Debenture.

     (c)  Upon (i) a transfer of all or  substantially  all of the assets of the
          Company  to any  person in a single  transaction  or series of related
          transactions,  or (ii) a consolidation,  merger or amalgamation of the
          Company with or into another  person or entity in which the Company is
          not the surviving entity (other than a merger which is effected solely
          to change the jurisdiction of incorporation of the Company and results
          in a reclassification, conversion or exchange of outstanding shares of
          Common  Stock  solely into shares of Common  Stock) (each of items (i)
          and (ii) being referred to as a "Sale Event"), then, in each case, the
          Company  shall,  upon  request of any  Holder,  redeem the  Debentures
          registered  in the  name  of  such  Holder  in  cash  for  130% of the
          principal amount, plus accrued but unpaid interest through the date of
          redemption,  or at the election of the Holder, such Holder may convert
          the  unpaid  principal  amount of this  Debenture  (together  with the
          amount of accrued but unpaid  interest) into shares of Common Stock of
          the surviving entity at the Conversion Price.

     (d)  In case  of any  reclassification,  capital  reorganization  or  other
          change or exchange of  outstanding  shares of the Common Stock,  or in
          case  of any  consolidation  or  merger  of the  Company  with or into
          another corporation (other than a consolidation or merger in which the
          Seller is the continuing  corporation and which does not result in any
          reclassification,   capital   reorganization   or  other   change   of
          outstanding shares of Common Stock), the Company shall cause effective
          provision to be made so that the Holder of this  Debenture  shall have

                                       E-73
<PAGE>

          the right  thereafter,  by converting this  Debenture,  to purchase or
          convert this  Debenture into the kind and number of shares of stock or
          other  securities or property  (including  cash)  receivable upon such
          reclassification,    capital    reorganization    or   other   change,
          consolidation  or merger by a holder of the number of shares of Common
          Stock that could have been  purchased  upon exercise of the Debentures
          and at  the  same  Conversion  Price,  as  defined  in the  Debenture,
          immediately prior to such reclassification,  capital reorganization or
          other change,  consolidation or merger. The foregoing provisions shall
          similarly    apply   to    successive    reclassifications,    capital
          reorganizations  and other  changes  of  outstanding  shares of Common
          Stock  and  to   successive   consolidations   or   mergers.   If  the
          consideration  received by the  holders of Common  Stock is other than
          cash,  the value shall be as  determined  by the Board of Directors of
          the Company or successor person or entity acting in good faith.

5.   No provision of this Debenture  shall alter or impair the obligation of the
     Company, which is absolute and unconditional,  to pay the principal of, and
     interest on, this Debenture at the time,  place, and rate, and in the form,
     herein prescribed.

6.   The Company hereby  expressly  waives demand and  presentment  for payment,
     notice of  non-payment,  protest,  notice of protest,  notice of  dishonor,
     notice of acceleration or intent to accelerate, and diligence in taking any
     action to collect  amounts  called for  hereunder and shall be directly and
     primarily liable for the payment of all sums owing and to be owing hereto.

7.   The  Company  agrees to pay all costs and  expenses,  including  reasonable
     attorneys'  fees,  which may be  incurred by the Holder in  collecting  any
     amount due under this Debenture.

8.   If one or more of the following  described  "Events of Default" shall occur
     and continue for 30 days, unless a different time frame is noted below:

     (a)  The Company  shall  default in the payment of principal or interest on
          this Debenture; or

     (b)  Any of the  representations  or warranties made by the Company herein,
          in the Subscription  Agreement,  or in any certificate or financial or
          other written  statements  heretofore or hereafter  furnished by or on
          behalf of the Company in connection with the execution and delivery of
          this  Debenture  or the  Subscription  Agreement  shall  be  false  or
          misleading  in any  material  respect at the time made or the  Company
          shall violate any covenants in the  Subscription  Agreement  including
          but not limited to Section 5(b) or 10; or

     (c)  The Company shall fail to perform or observe, in any material respect,
          any  other  covenant,   term,  provision,   condition,   agreement  or
          obligation of the Company under this Debenture,  and the  Subscription
          Agreement  and such  failure  shall  continue  uncured for a period of
          thirty (30) days after notice from the Holder of such failure; or

                                       E-74
<PAGE>

     (d)  The  Company  shall (1) become  insolvent;  (2) admit in  writing  its
          inability  to pay its  debts  generally  as they  mature;  (3) make an
          assignment  for the benefit of creditors or commence  proceedings  for
          its  dissolution;  (4) apply for or  consent to the  appointment  of a
          trustee,  liquidator or receiver for its or for a substantial  part of
          its property or business;  (5) file a petition for bankruptcy  relief,
          consent to the  filing of such  petition  or have filed  against it an
          involuntary petition for bankruptcy relief, all under federal or state
          laws as applicable; or

     (e)  A trustee,  liquidator or receiver  shall be appointed for the Company
          or for a  substantial  part of its  property or  business  without its
          consent and shall not be discharged within thirty (30) days after such
          appointment; or

     (f)  Any governmental agency or any court of competent  jurisdiction at the
          instance of any governmental agency shall assume custody or control of
          the whole or any  substantial  portion of the  properties or assets of
          the Company; or

     (g)  Any money judgment, writ or warrant of attachment, or similar process,
          in excess of One Hundred Thousand  ($100,000) Dollars in the aggregate
          shall be entered or filed against the Company or any of its properties
          or other  assets  and shall  remain  unpaid,  unvacated,  unbonded  or
          unstayed  for a period of fifteen (15) days or in any event later than
          five (5) days prior to the date of any proposed sale thereunder; or

     (h)  Bankruptcy, reorganization,  insolvency or liquidation proceedings, or
          other  proceedings  for relief under any bankruptcy law or any law for
          the  relief  of  debtors  shall  be  instituted   voluntarily   by  or
          involuntarily against the Company; or

     (i)  The  Company   shall  have  its  Common   Stock   delisted   from  the
          over-the-counter  market  or other  market  or  exchange  on which the
          Common Stock is or becomes listed or, if the Common Stock trades, then
          trading  in the  Common  Stock  shall be  suspended  for more  than 10
          consecutive days; or

     (j)  The Company  shall not deliver to the Buyer the Common Stock  pursuant
          to paragraph 4 herein  without  restrictive  legend  within 5 business
          days.

Then,  or at any time thereafter, unless cured, and in each and every such case,
unless  such  Event  of  Default shall have been waived in writing by the Holder
(which  waiver  shall not be deemed to be a waiver of any subsequent default) at
the  option  of  the  Holder and in the Holder's sole discretion, the Holder may
consider  this  Debenture  immediately  due  and  payable,  without presentment,
demand,  protest  or  (further)  notice  of  any  kind  (other  than  notice  of
acceleration),  all  of which are hereby expressly waived, anything herein or in
any note or other instruments contained to the contrary notwithstanding, and the
Holder  may  immediately, and without expiration of any period of grace, enforce
any  and  all  of  the Holder's rights and remedies provided herein or any other
rights  or  remedies  afforded  by  law.

                                       E-75
<PAGE>

9.   This Debenture represents a prioritized obligation of the Company. However,
     no  recourse  shall be had for the  payment  of the  principal  of,  or the
     interest on, this Debenture, or for any claim based hereon, or otherwise in
     respect hereof, against any incorporator, shareholder, officer or director,
     as  such,  past,  present  or  future,  of the  Company  or  any  successor
     corporation, whether by virtue of any constitution, statute or rule of law,
     or by the  enforcement of any assessment or penalty or otherwise,  all such
     liability being, by the acceptance  hereof and as part of the consideration
     for the issue hereof, expressly waived and released.

10.  In case any  provision  of this  Debenture  is held by a court of competent
     jurisdiction   to  be   excessive   in  scope  or   otherwise   invalid  or
     unenforceable,  such  provision  shall be adjusted  rather than voided,  if
     possible, so that it is enforceable to the maximum extent possible, and the
     validity and  enforceability of the remaining  provisions of this Debenture
     will not in any way be affected or impaired thereby.

11.  This Debenture and the agreements referred to in this Debenture  constitute
     the full and entire understanding and agreement between the Company and the
     Holder with respect to the subject  hereof.  Neither this Debenture nor any
     term hereof may be amended, waived,  discharged or terminated other than by
     a written instrument signed by the Company and the Holder.

12.  This  Debenture  shall be governed by and construed in accordance  with the
     laws of Colorado  applicable  to contracts  made and wholly to be performed
     within the State of Colorado and shall be binding upon the  successors  and
     assigns of each party hereto.  The Holder and the Company  hereby  mutually
     waive trial by jury and consent to exclusive  jurisdiction and venue in the
     courts of the State of Colorado. At Holder's election,  any dispute between
     the parties may be arbitrated  rather than litigated in the courts,  before
     the American  Arbitration  Association in Denver and pursuant to its rules.
     Upon demand made by the Holder to the Company, the Company agrees to submit
     to and participate in such  arbitration.  This Agreement may be executed in
     counterparts,  and the facsimile transmission of an executed counterpart to
     this Agreement shall be effective as an original.

                  {REMAINDER OF PAGE INTENTIONALLY LEFT BLANK}

                                       E-76
<PAGE>

     IN  WITNESS  WHEREOF,  the  Company  has  caused this instrument to be duly
executed  by  an  officer  thereunto  duly  authorized.

Dated:  December    ,  2000

PROCESSING  PLUS,  INC.

     By: /s/ Gene Retske

     Title:  President

                                       E-77
<PAGE>

                                   SCHEDULE A
                                   DEBENTURES
                                   ----------

                              AGGREGATE PRINCIPAL
            NAME/ADDRESS     AMOUNT OF DEBENTURES     PURCHASE PRICE
            ------------     --------------------     --------------

Carlsbad  Capital,  LLC
1835  South  Academy  Boulevard
Colorado Springs, Colorado 80916                $333,000     $299,700
                                                --------     --------

Louvre  Investors,  LLC
6547  North  Academy  Boulevard  #P
Colorado Springs, Colorado 80918                $333,000     $299,700
                                                --------     --------

Yellow Stream Company, LLC                      $334,000     $300,600
5004 West 92nd Avenue # 102
Westminster,  Colorado  80031

                                    TOTAL     $1,000,000     $900,000
                                    -----     ----------     --------

                       ASSIGNMENT AND ASSUMPTION AGREEMENT

     ASSIGNMENT  AND  ASSUMPTION  AGREEMENT dated this  5th day of January, 2001
between  Processing  Plus, Inc. ("Assignor") and Saratoga International Holdings
Corp.  ("Assignee").

     WHEREAS:

A.   Assignor  has  sold  its  8%  Series  A  Senior  Subordinated   Convertible
     Redeemable  Debentures to Louvre  Investors LLC, Yellow Stream Company LLC,
     and Carlsbad Capital LLC having an aggregate original principal face amount
     of One Million United States dollars $1,000,000 (singly, a "Debenture," and
     collectively, the "Debentures"); and

B.   Assignee has merged with Assignor  pursuant to a January 2, 2001  Agreement
     and Plan of Merger  ("Agreement"),  and  Assignor has become a wholly owned
     subsidiary of Assignee; and

C.   Assignor  wishes to assign the  Debentures  to  Assignee  and  Assignee  is
     willing  to assume  the  obligations  of the  Debentures  in  exchange  for
     valuable consideration set forth in the Agreement.

     NOW  THEREFORE,  it is agreed that Assignor shall assign and Assignee shall
irrevocably  and unconditionally assume all of the conditions and obligations of
a  certain  Securities  Subscription  Agreement and Debentures, each dated as of
December  28,  2000,  as if Assignee has entered into and undertaken all of such
obligations  at  the  time  these  instruments were given, and shall render full
performance  under  such  instruments  in  the  place  and  stead  of  Assignor.

PROCESSING  PLUS,  INC.               SARATOGA  INTERNATIONAL HOLDINGS  CORP.
(Assignor)                            (Assignee)

By: /s/ Gene Retske                   By: /s/ Patrick F. Charles

                                       E-78

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