Document:

July 10, 2003

DEED OF VARIATION

LORD RAZZALL and
JOHN ANTHONY MITCHELL trading as
ARGONAUT ASSOCIATES

and

BOSTON FIDELITY LIMITED

FLADGATE FIELDER
25 North Row
London W I K 6DJ
Tel: 020 7323 4747
Fax: 020 7629 4414
Ref: ELB/20500/0001

<PAGE>

DATE:  2003

PARTIES:

(1) LORD RAZZALL and JOHN ANTHONY MITCHELL trading as ARGONAUT ASSOCIATES care
of second floor, 14-16 Regent Street, London SW1Y 4PH (Argonaut);

(2) BOSTON FIDELITY LIMITED care of Asian Management Services,  111 North Bridge
Road, 18-01 Peninsula Plaza, Singapore 179098, Singapore (Boston);

(3) TOTAL HORIZONS INC of c/8631  Terrance  Drive,  El Ceritto,  California,  CA
04530 USA (TH); and

(4) PAY2 LIMITED of c/o Exchange  House,  54-58 Alhol Street,  Douglas,  Isle of
Man, IMI IJD United Kingdom (Pay2).

The parties to this agreement agree that the heads of agreement doted 21
February 2003 as amended by a deed of variation dated Tuesday, 29 April 2003
will be terminated and of no effect among them immediately upon the signature by
all of them of the heads of agreement set out in the schedule to this agreement.

<PAGE>

                                   Schedule I

                                    AGREEMENT

                                     PARTIES

                     LORD RAZZALL and JOHN ANTHONY MITCHELL
                         trading as ARGONAUT ASSOCIATES

                             BOSTON FIDELITY LIMITED

                    PAYGARD INC, formerly TOTAL HORIZON INC.

                                  PAY2 LIMITED

                           ARGONAUT ASSOCIATES LIMITED

<PAGE>

THIS AGREEMENT is made on         2003

BETWEEN:

LORD RAZZALL and JOHN ANTHONY MITCHELL trading as ARGONAUT ASSOCIATES C/- of 2ND
Floor, 14-16 Regent Street, London SW1Y MPH, United Kingdom ("Argonaut")

and

BOSTON FIDELITY  LIMITED c/o Asian Management  Services,  111 North Bridge Road,
18-01 Peninsula Plaza, Singapore 179098, Singapore ("Boston')

and

PAYGARD INC, formerly TOTAL HORIZON INC, c/o 8631 Terrance Drive, El Cerrito,
California, CA 04530, USA ("TH")

and

PAY2 LIMITED c/o Exchange House, 54-58 Athol Street,  Douglas,  Isle of Man, IM1
1JD, United Kingdom ("Pay2")

and

ARGONAUT ASSOCIATES LIMITED c/o Papabasiliou House, PO Box 27007, 70 John F
Kennedy Avenue, Nicosia, Cyprus CY1641 ("AAC")

RECITALS:

A. The parties  wish to enter into this  agreement  to set out their  respective
rights and  obligations in relation to a transaction  involving TH and the "Pay2
Card System".

B. The parties have agreed to acquire  shares in TH on the terms and  conditions
contained in this agreement.

C. The parties have agreed to operate the  business  known as "Pay2 Card System"
on the terms set out in this agreement.

THE PARTIES AGREE in consideration of the mutual promises contained in this
agreement:

1.     DEFINITIONS AND INTERPRETATION

1.1    Definitions

In this agreement:

"Business  Day" means a day on which  banks are open for  business in the United
States of America;

"Conditions Precedent" means the conditions in clause 2. 1;

"Members" means a member of the World Games Organization;

"MSL" means Miramas Services Limited, a company incorporated in Guernsey;

"Pay2  Card  System"  means a digital  electronic  debit  card  provided  to the
Members;

"Quotation" means the OTC dealing facility referred to in clause 2.1 (i);

"Shareholders' Agreement" means a shareholders' agreement between Argonaut and
Boston on or substantially on the terms set out in clause 6;

"Share" means a share of common stock with a par value of US $0.001 in the
capital of TH.

<PAGE>

1.2 Interpretation

In this agreement, unless the context otherwise requires:

     (a)  headings and  underlinings  are for convenience only and do not affect
          its interpretation;

     (b)  words importing the singular include the plural and vice versa;

     (c)  words importing a gender include any gender,

     (d)  other  parts of  speech  and  grammatical  forms  of a word or  phrase
          defined in this agreement have a corresponding meaning,

     (e)  a reference  to any thing,  including,  but not limited to, any right,
          includes a part of that thing;

     (f)  a reference to a part, clause, party, annexure, exhibit or schedule is
          a reference to a part and clause of, and a party, annexure exhibit and
          schedule to, this agreement and a reference to this agreement includes
          any annexure, exhibit and schedule;

     (g)  a reference to a document  includes all amendments or supplements  to,
          or replacements or novations of, that document;

     (h)  a reference to a party to a document includes that party's  successors
          and permitted assigns;

     (i)  all references to dollars are to US Dollars; and

     (j)  if any payment to be made  pursuant to this  agreement  falls due on a
          non-Business Day, the payment is to be made on the next Business Day.

2.     CONDITIONS PRECEDENT

2.1  This  agreement  and the  obligations  of the  parties  pursuant  to it are
     conditional upon the following:

     (a)  Boston being satisfied in its absolute  discretion with the results of
          its due diligence on TH,  including its assets,  liabilities,  capital
          structure and shareholders;

     (b)  Boston being  satisfied in its  absolute  discretion  with the rights,
          title and interest of Pay2 in all  intellectual  property and know-how
          in the Pay2 Card System;

     (c)  the issue by TH of 28,185,000  Shares credited as fully paid to AAC in
          consideration for AAC arranging for TH to acquire an exclusive 10 year
          global license from Pay2 in the form to be agreed (Pay2 License);

     (d)  the  transfer to Boston by AAC of  4,185,000  Shares in repayment of a
          promissory  note from AAC to Boston for sum  totalling  US  $1,000,000
          tent by Boston to AAC;

     (e)  TH entering into an agreement  with AAC for the repayment of a loan of
          US $1,000,000 from AAC to TH evidenced by a promissory note;

     (f)  TH changing its name to "Paygard Inc";

     (g)  TH  completing   all  relevant   statutory,   legal,   and  accounting
          obligations and obtaining all necessary approvals to enable it to have
          its shares  dealt in on the Over the Counter  Billboard  in the United
          States of America and paying all fees associated with the Quotation;

     (h)  TH obtaining all shareholder,  SEC, and any other regulatory approvals
          required under the laws of the United States of America to any and all
          of the transactions contemplated in this agreement;

     (i)  the execution of the Shareholders' Agreement and such other agreements
          required  to give  effect  to the  transactions  contemplated  in this
          agreement;

     (j)  TH being satisfied with its due diligence investigations in respect of
          Boston.

<PAGE>

2.2    In the event that the Conditions Precedent are not satisfied by 30
       September 2003, Boston and Argonaut may elect by notice in writing to
       terminate this agreement whereupon the parties will be released from all
       further obligations under it.

3.       BOSTON RIGHTS AND OBLIGATIONS

3.1    After satisfaction of the Conditions Precedent, Boston will subscribe in
       cash for Shares payment for which will be made in installments as follows

     (a)  3,420,000  far  $750,000,  representing  a premium of $0.218 per Share
          payable on completion;

     (b)  2,916,471  for US $1,000,000  representing  a premium of US $0.342 per
          Share payable one calendar month from completion;

     (c)  2,916,471  for US $1,000,000  representing  a premium of US $0.342 per
          Share payable two calendar months from completion;

     (d)  2,916,471  for US $1,000,000  representing  a premium of US $0.342 per
          Share payable three calendar months from completion; and

     (e)  3,645,588 for US $1,250,000  representing  a premium of US $0.,342 per
          Share payable four calendar months from completion.

The Shares will be issued on completion of the Shareholders Agreement to Boston
nil paid and held in trust until the corresponding installment of consideration
set out above has, been paid in cleared funds for the account of the Company.

3.2    Boston will grant to TH a 20 year exclusive license to use the names of
       1,000,000 Members for the purpose only of marketing the Pay2 Card System
       to them (Boston License Agreement).

3.3    Boston agrees to introduce the Pay2 Card System to up to 1,000,000
       Members and, with the consent of accepting Members, will arrange for
       those Members to be signed up as Pay2 Card System card members by TH.

3.4  TH will pay the following  sums to Boston as and when a Member is signed up
     as a Pay2 Card System member by TH:

     (a)  for each Member up to 150,000 Members, $5;

     (b)  for each Member from 150,001 to 1,000,000, $5; and

     (c)  for each Member over 1,000,000, $ 50 cents.

3.5 The records of the Members who am the subject of the Boston License
Agreement will be maintained in the Pay2 database in the Isle of Man or anywhere
else from time to time and those records will at all times remain exclusively
the property of TH until the termination or expiry of that license agreement.

3.6 Boston, Pay2, and TH agree that the names of the Members introduced by
Boston or World Games Inc to TH will at all times remain the property of the
owner. TH and Pay2 agree not to use those names in any form whatsoever other
than pursuant to the Boston License Agreement.

3.7 Boston will have the right to acquire the issued share capital of Pay2 in
each case at the price proposed by an independent valuer in the Isle of Man as
follows:

     (a)  in the event that Lord  Razzall,  John Mitchell or Graham Newall elect
          to sell  all or part of  their  shareholdings  in Pay2 and they do not
          wish to acquire all or pan of each  others,  shareholding  offered for
          sale, all or part of the shareholding offered for sale;

     (b)  in the event  that Pay2  becomes  insolvent  the entire  issued  share
          capital of Pay2.

<PAGE>

4.     MSL RIGHTS AND OBLIGATIONS

4.1 TH will issue 5,700,000 Shares to MSL in satisfaction of the fee owed to MSL
for corporate finance services.

4.2 TH will enter into a consultancy agreement with MSL for a term of 3 years
commencing on I October 2003 pursuant to which MSL will be paid an annual fee of
$150,000. MSL will provide general business and consultancy services.

5.     TH RIGHTS AND OBLIGATIONS

5.1 TH undertakes to Boston not to issue any further shares or other  securities
without the prior written approval of Boston.

5.2 TH undertakes to Boston to provide it, and its advisers, with access to its
books and records for the purpose of enabling Boston to exercise its rights
pursuant to this agreement and Argonaut agrees to use its best endeavors to
cause TH to provide Boston with such access to the books and records of TH.

6.     SHAREHOLDERS' AGREEMENT

6.1 Argonaut and Boston agree to enter into the Shareholders' Agreement
regulating their rights and obligations with respect to their shareholdings in
TH, such agreement to:

     (a)  provide that  Argonaut  and Boston will have equal  voting  rights and
          control in TH,  notwithstanding  that  Argonaut  will hold more Shares
          than Boston;

     (b)  include, without limitation,  the terms of dilution and management and
          rights of refusal in  respect  of each  other's  shares in TH and such
          other terms ordinarily found in shareholders' agreements in common use
          in the United States of America;

     (c)  provide for equal  representation  on the board of TH,  which will not
          exceed  four  directors  but not  fewer  than two  directors  each for
          Argonaut and Boston;

     (d)  provide that the nominated board  representatives  will in the case of
          Argonaut,  be John  Mitchell and Lord Razzall and as an alternate  for
          either or both of them Graham  Newall and in the case of Boston,  Greg
          Kennedy and Lindsay  Sanford,  who may appoint an alternate for either
          or both of them.

7.     SERVICE CONTRACTS

7.1 Both TH and Pay 2 will enter into a contract for services with Apollo
Consulting Limited, London for services on a cost plus 10% basis in the form
attached as appendix 2;

7.2 TH will enter into a contract for services with Interpaytech Limited,
Nicosia, Cyprus for marketing services for $900,000 per annum in the form
attached as appendix 3, with the intention that Interpaytech Limited enter into
contractual arrangements with such nominees of Boston and under which $450,000
of the funds to be paid to Interpaytech Limited are disbursed in full to such
nominees in equal shares and with such nominees of Argonaut as may be advised by
Argonaut and under which $450,000 of the funds am disbursed in full to such
nominees in equal shares.

8.     GENERAL

8.1 Each party must pay its own costs and expenses in respect of the
negotiation, preparation, execution, delivery and registration of this
agreement.

8.2

     (a)  This agreement is governed by the laws of England.

     (b)  Each party irrevocably  submits to the  non-exclusive  jurisdiction of
          the courts of London, England.

     (c)  Each party irrevocably  waives any objection to the venue of any legal
          process  on  the  basis  that  the  process  has  been  brought  in an
          inconvenient forum.

<PAGE>

     (d)  Each  party  irrevocably   waives  any  immunity  in  respect  of  its
          obligations  under  this  agreement  that  it  may  acquire  from  the
          jurisdiction  of any  court  or  any  legal  process  for  any  reason
          including, but not limited to, the service of notice, attachment prior
          to judgment, attachment in aid of execution or execution.

8.3 The terms of this agreement are confidential to each party and the
employees, legal advisers, auditors and other consultants to the parties, and
may not be disclosed by either party to other persons except:

     (a)  with the written consent of the other parties, which consent is not to
          be unreasonably withheld-, or

     (b)  if required by law or by a stock exchange; or

     (c)  in connection with legal proceedings; or

     (d)  if the information is available generally and publicly.

8.4 Further assurances

Each party must do all things necessary to give full effect to this agreement
and the transactions contemplated by this agreement.

8.5 Variation

An amendment or variation to this agreement is not effective unless it is in
writing and signed by the parties.

8.6 Waiver

A party's failure or delay to exercise a power or right does not operate as a
waiver of that power or right.

8.7 Notices

A notice or other communication connected with this agreement will be taken to
have been duly and properly given if it is in writing and:

     (a)  sent by post, postage prepaid, to the address or last known address of
          the addressee; or

     (b)  sent by facsimile to the facsimile number of the addressee; or

     (c)  otherwise  delivered at the address of the  addressee  set out in this
          agreement or subsequently notified.

For the purposes of this agreement, the initial address for service for each of
the parties is as follows:

Boston:

Address:                   c/o Asian Management Services,
                           111 North Bridge Road, 18-01 Peninsula Plaza
                           Singapore 179098, Singapore

Attention:                 Duncan Merin
Facsimile:                 6563360200
Telephone:                 6563360102

Argonaut:

Address:                  c/o 2nd Floor, 14-16 Regent Street
                           London SW1Y 4PH
                           United Kingdom
Attention:                 Lord Edward Timothy Razzall
Facsimile:                 44 207 976 1833
Telephone:                 44 207 976 1233

<PAGE>

TH:

Address:                   c/o 8631 Terrance Drive, El Cerrito
                           California, CA 04530 USA
Attention:                 David Anderson
Facsimile:                 44 207 976 1833
Telephone:                 44 207 976 1233

Pay2:

Address:                   c/o Exchange House, 54-58 Athol Street
                           Douglas, Isle of Man IM1 I JD
                           United Kingdom

Attention:                 Graham Newall
Facsimile:                 44 207 976 1933
Telephone                  44 207 976 1233

8.8 This  agreement  may be  executed  in any  number of  counterparts,  but the
counterparts together constitute the one instrument,

8.9 The parties agree that this agreement is to be legally binding on the
parties until such time as it is replaced by more formal and comprehensive
documentation.

EXECUTED AS AN AGREEMENT:

EXECUTED by LORD RAZZALL
and JOHN ANTHONY MITCHELL for and on behalf of
ARGONAUT ASSOCIATES

EXECUTED for and on behalf of
ARGONAUT  ASSOCIATES  LIMITED
by the  authority of
the Directors

Name:
(Director)

In the presence of
Name:
Address
Occupation

EXECUTED for and on behalf of
BOSTON FIDELITY LIMITED
by the authority of the
Directors:

(one signatory)

Name (Director) in the presence of

Name: Address: Occupation:

EXECUTED for and on behalf of
TOTAL HORIZON INC
by the authority of the
Directors:

Name
(Director)

In the presence of

Name: Address: Occupation:

<PAGE>

EXECUTED for and on behalf of
PAY2 Limited
by the authority of the Directors:

Name
(Director)

In the presence of.

Name: Address: Occupation:

EXECUTED for and on behalf of
ARGONAUT ASSOCIATES MUTED,
by the authority of the
Directors:

Name
(Director)

In the presence of

Name: Address: Occupation:

Executed by Lord Razzall and
John Anthony Mitchell
trading as Argonaut Associates

Executed a by Lord Razzall in the presence of:

Witness' signature:

Witness' name:

Address:

Occupation:

Executed by
John Anthony Mitchell
in the presence of:

Witness' signature

Witness' name:
Address:
Occupation:

Executed  by
Boston Fidelity Limited

Executed by Total Horizon, Inc.

Director

Executed  by Pay2 Limited

Director

Interpaytech Ltd

<PAGE>

                                 Nicosia, Cyprus

             Airwaves Consultants Ltd Tortola British Virgin Islands

                                  10 July 2003

Dears Sirs,

                                LETTER AGREEMENT

We are writing to confirm arrangements whereby we. have appointed Airwaves

Consultants Ltd to act as consultants to Interpaytech Ltd providing management
and marketing services.

By way of compensation Interpaytech will pay Airwaves Consultants Ltd an annual
fee of US $225,000 payable monthly in arrears commencing I' October 2003.

This arrangement will have a term of 3 years.

Please confirm your acceptance of these terms by signing the attached copy of
this agreement.

Yours sincerely,

J.A. Mitchell
Director

Accepted:

Airwaves Consultants Ltd

<PAGE>

                                    PAY2 LTD

                                   Isle of Man

Argonaut Associates Ltd
14-16 Regent Street
London, SW I Y 4PH

10 July 2003

Dear Sirs,

We are writing to confirm your appointment as consultants to Pay 2 Ltd providing
management services.

in compensation for the provision of these services Pay2 will pay to Argonaut
Associates Ltd 54.55% of the annual royally received by Pay2 from Paygard Inc.
(formerly known as Total Horizon Inc.) in accordance with the License Agreement
dated 20 March 2003 between Pay2 and Total Horizon Inc.

Yours sincerely,

John Mitchell
DirectorPaygard Inc
                          London Representative Office
                     14-16 Regent Street, London, SW1Y 4PH

Miramas Services Ltd
Guernsey
Channel Island

                                                               10 July 2003
Dear Sirs,
                                 LETTER AGREEMENT

We write to confirm that Paygard will retain Miramas  Services Ltd ("MSL") for a
period of three years to  commence  1st October  2003 to provide  corporate  and
financial advice to Paygard.

In compensation  for providing  Paygard with these services Miramas will receive
US$ 150,000 (one hundred and fifty  thousand  United  States  dollars) per annum
payable monthly in arrears.

In addition in compensation  for having  introduced  World Games Inc to Paygard,
Miramas will be  compensated  by a further  1.147% flat of the annual net profit
generated by Paygard Inc. Net profit for the purpose of this arrangement will be
calculated in accordance with the formula agreed by Paygard with Pay2 Ltd in the
License  Agreement dated 20th March 2003. This  arrangement will be in place for
the life of the said License Agreement.

Please  confirm your  acceptance  of these terms by signing the attached copy of
this agreement. We look forward to working with you.

Yours sincerely,

C. P. Gervaise  Brazier
Director

Accepted

Miramas Services Ltd

<PAGE>

                             Boston Fidelity Limited

                                    Singapore

Argonaut Associates Ltd
Papabasiliou House
PO Box 27007
70 JF Kennedy Avenue
Nicosia, Cyprus

10 July 2003

Dear Sirs,

MIRAMAS SERVICES LIMITED ("MSL")
PAYGARD INC. ("PAYGARD")

We write with reference to MSL's shareholding in Paygard.

This  serves to confirm  that in the event that  Boston  exercises  its right to
purchase  any or all of MSL's  shares in  Paygard  Boston  will  offer  Argonaut
Associates  50% of said  purchase at the same price as Boston  acquire them from
MSL.  Such  offer(s)  will be  available  to Argonaut  for 60 days from the date
Boston acquires said shares and Boston  undertakes to advise Argonaut  forthwith
of any such acquisition.

Yours sincerely,

Stewart McAlpine
As Agent

<PAGE>

                             Boston Fidelity Limited

                                    Singapore

Argonaut Associates Ltd
c/o: Papabasiliou House
PO Box 27007 70
JF Kennedy Avenue
Nicosia, Cyprus

                                                                   2nd June 2003
Attention: Mr. John Mitchell

Dear Sirs,

We write to confirm  arrangements  whereby  Boston  Fidelity Ltd has advanced to
Argonaut  Associates a total of US $1,200.000 (one million two hundred  thousand
United States dollars).

This loan is  interest  free and Will be repaid by Argonaut  Associates  causing
Total Horizon Inc, c/o 8631 Terrnace Drive, El Cerrito, California, CA 04530, to
issue  4,185,000 of its common stock to Boston  Fidelity prior to 30th September
2003.

Kindly acknowledge your acceptance of this loan and its terms and conditions set
out in this letter by signing the attached copy of this letter.

Yours sincerely,

Stewart McAlpine
As Agent

<PAGE>

                            BOSTON FIDELITY LIMITED

                  18 South Street - Mayfair - London W I K 1 DG
                            Telephone: 020 7499 8521
                           email: stewartm@ewmgmt.com

Lord Razzall CBE
Argonaut Associates
14-16 Regent Street
London SW1Y 4PH

22 September 2003

Dear Tim

Re: Paygard Inc. / Various Agreements

I  have  just  received  the  signed  'Accepted'   letter   agreements   between
Interpaytech Ltd. and both Airwaves  Consultants Ltd. and Fine Choice Securities
Ltd.

A copy of each is enclosed for your file,

Regards

Yours sincerely

Stewart McAlpine

<PAGE>

                                Interpaytech Ltd

                                 Nicosia, Cyprus

Airwaves Consultants Ltd Tortola British Virgin Islands

Dears Sirs,                                                         10 July 2003

                                LETTER AGREEMENT

We are writing to confirm Arrangements whereby we have appointed -Airwaves -
Consultants Ltd to act as consultants to Interpaytech  Ltd providing  management
and marketing services.

By way of compensation  Interpaytech will pay Airwaves Consultants Ltd an annual
fee of US $225,000 payable monthly in arrears commencing 1st October 2003.

This arrangement will have a term of 3 years.

Please  confirm your  acceptance  of these terms by signing the attached copy of
this agreement.

Yours sincerely,

J.A, Mitchell
Director

Accepted:

Airwaves Consultants Ltd

<PAGE>

                                Interpaytech Ltd

                                 Nicosia, Cyprus

Fine Choice Securities Ltd
Tortola
British Virgin Islands

                                                                 10 July 2003
Dears Sirs,

                                LETTER AGREEMENT

We are writing to confirm  arrangements  whereby we have  appointed  Fine Choice
Securities Ltd to act as consultants to Interpaytech  Ltd -providing  management
and marketing services.

By way of  compensation  Interpaytech  will pay Fine  Choice  Securities  Ltd an
annual fee of US $225.000 payable monthly in arrears commencing I" October 2003.

This arrangement will have a term of 3 years.

Please  confirm your  acceptance  of these terms by signing the attached copy of
this agreement.

Yours sincerely.

J.A. Mitchell
Director

Accepted:

Fine Choice Securities Ltd

<PAGE>

                                Interpaytech Ltd

                                 Nicosia, Cyprus

Fine Choice Securities Ltd
Tortola
British Virgin islands

10 July 2003 Dears Sirs,

                                LETTER AGREEMENT

We are writing to confirm  arrangements  whereby we have  appointed  Fine Choice
Securities Ltd-to act  as-consultants  to Interpayfech Ltd providing  management
and marketing services.

By way of  compensation  Interpaytech  will pay Fine  Choice  Securities  Ltd an
annual fee of US  $225.000  payable  monthly in arrears  commencing  1st October
2003.

This arrangement will have a term of 3 years.

Please  confirm your  acceptance  of these terms by signing the attached copy of
this agreement.

Yours sincerely.

J.A. Mitchell
Director

Accepted:

Fine Choice Securities Ltd

<PAGE>

                                Interpaytech Ltd

                                 Nicosia, Cyprus

Argonaut Associates Ltd
Papabasiliou House
PO Box 27007
70 JF Kennedy Avenue
Nicosia, Cyprus

10 July 2003

Dear Sirs,

                                LETTER AGREEMENT

We are  writing to confirm  arrangements  -whereby  we have  appointed  Argonaut
Associates Ltd to act as consultants to  Interpaytech  Ltd providing  management
and marketing services.

By way of compensation  Interpaytech will pay Argonaut  Associates Ltd an annual
fee of US $450,000 payable monthly in arrears commencing I" October 2003.

This arrangement will have a term of 3 years.

Please  confirm your  acceptance  of these terms by signing the attached copy of
this agreement.

Yours sincerely,

J.A. Mitchell
Director

Accepted:

Argonaut Associate

<PAGE>

                             Argonaut Associates Ltd

                                 Nicosia Cyprus

Total Horizons Inc.
8631 Terrnace Drive
El Cerrito, California
CA 04530

2nd June 2003

For the attention of Mr. CP Gervaise-Brazier

Dear Sirs,

We write to confirm arrangements  whereby Argonaut Associates Ltd.  ("Argonaut")
has  advanced to Total  Horizon Inc a total of US  $1,200,000  (one  million two
hundred thousand United States dollars).

This loan is interest free and is repayable in  installments  of US$ 100.000 per
month  commencing 1 October 2003 with the final payment no later than 31 October
2004, or as otherwise agreed in accordance with Total Horizon cashflow.

Kindly acknowledge your acceptance of this loan and its terms and conditions set
out in this letter by signing the attached copy of this letter.

Yours sincerely,

J. A Mitchell
Director

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