Document:

Exhibit 10.5

                                CLIENT AGREEMENT

                          BusinessDevelopment.com, LLC
                         253 West 28th Street, 2nd Floor
                            New York, New York 10001

As of December 13, 2000

David Devor, Chief Operating Officer
Essential Reality, LLC
253 West 28th Street, Second Floor
New York, NY 10001

Dear Mr. Devor:

This letter agreement (the "Letter Agreement") affirms our mutual understanding
regarding the business relationship between Essential Reality, LLC ("Client")
and BusinessDevelopment.com, LLC ("bd.com").

The parties agree that the parameters of bd.com's services and obligations to
Client are described more fully below and that the general terms governing this
Letter Agreement are described more fully on Attachment A hereto.

bd.com shall use commercially reasonable efforts to introduce Client to certain
business relationships of bd.com as shall be mutually determined by Client and
bd.com ("Prospect(s)"), for the purpose of facilitating, joint ventures,
strategic alliances, partnerships and/or any revenue generating business
opportunity or relationships, including licensing arrangements and/or other
transactions ("Transaction(s)") with Client.

The parties further agree that bd.com's compensation for its efforts on behalf
of Client shall be (i) a non-refundable monthly retainer of $6,000 USD
("Retainer") paid to bd.com upon the execution of this Letter Agreement and
continuing until either party shall notify the other, by at least thirty (30)
days notice, in advance, in writing, of its intention to terminate this
Agreement; and (ii) for any Transaction(s) consummated with any of the Companies
bd.com shall receive such other compensation as shall determined by mutual
agreement; PROVIDED, HOWEVER, that the parties hereto agree that the services to
be provided by bd.com hereunder are valuable and integral to the growth and
development of the Client and that bd.com's provision of the services called for
hereunder constitute services substantially different in form and substance than
traditional consulting services and as such bd.com shall not be compensated in
form or amount as would a traditional consultant providing services appearing to
be similar to the services to be performed by bd.com hereunder. Furthermore, the
parties hereby agree that the form of compensation to bd.com for the provision
of the services contemplated hereunder shall be in the form of cash, equity in
the Client or a combination of both, to be determined by mutual agreement by the
parties and Client and bd.com hereby agree that Client shall not enter into any
Transaction unless and until Client and bd.com negotiate in good faith the terms
of a written agreement which sets forth bd.com's compensation resulting from
such Transaction. If the parties cannot agree on the terms of bd.com's
compensation, the compensation shall be determined by arbitration pursuant to
the provisions of Section 8 of Attachment A, with the arbitrators determining
bd.com's compensation based upon the fair market value of the services provided
and the benefit received by Client; PROVIDED, HOWEVER, that bd.com shall also be
entitled to reimbursement of all fees in such arbitration and a 20% premium on
its compensation if the Client elects to proceed with such Transaction before a
written agreement is reached with bd.com on its compensation.

Client shall keep bd.com informed and provide bd.com with any and all
information, notices and updates regarding its ongoing negotiations,
discussions, meetings, relationships and current and future dealings and/or
arrangements relating to or arising from the services provided by bd.com
hereunder, including without limitation, the consummation of any contract,
agreement, deal, transaction, partnership, alliance or other contractual
relationship resulting from or relating to such services.

                                       64
<PAGE>

The parties further agree, that this Letter Agreement contains the entire
agreement and understanding of the parties with respect to the subject matter
hereof, and shall only apply to the introductions and/or related services
enumerated herein ("bd.com Services"). Any other introductions or related
services, whether in addition to or in replacement of any of the bd.com
Services, shall be negotiated and agreed to by the parties prior to any such
introduction or related service, and the terms of such introductions or related
services, including, without limitation, the compensation arrangement, shall be
set forth on an Annex 1 ("Annex 1") which shall be attached to and become part
of this Letter Agreement. Furthermore, any transaction, whether with an entity
specified herein or with any other entity that bd.com introduces to or
identifies to the Client, which is other than a Transaction(s) as contemplated
herein, including any and all business combinations (such transactions, an
"Other Transaction"), shall be negotiated in good faith or agreed to by the
parties prior to the consummation of any such Other Transaction and the terms of
such Other Transaction and the services associated therewith, including, without
limitation, bd.com's compensation therefore, shall be set forth on such Annex 1
which shall be attached to and become part of this Letter Agreement. The terms
and provisions of this Letter Agreement, including, without limitation, the
arbitration provisions of Section 8 of Attachment A, shall govern any such new
introductions or related services, as well as the compensation arrangements,
agreed to and listed on Annex 1 in the event the parties can not agree on
bd.com's compensation; PROVIDED, HOWEVER, that bd.com shall also be entitled to
reimbursement of all fees in such arbitration and a 20% premium on its
compensation if the Client elects to proceed with such Transaction before a
written agreement is reached with bd.com on its compensation.

Either party shall have the right to cancel this Letter Agreement at any time
upon 30 days' written notice to the other party. The parties agree, however,
that termination of this Letter Agreement shall not affect any rights of bd.com
or obligations by Client that accrue prior to termination or those which survive
termination of this Letter Agreement, including but not limited to those rights
and obligations included in any and all attachments to this Letter Agreement.
The compensation to be earned by bd.com for any services performed prior to the
termination of this Letter Agreement shall survive termination of this Letter
Agreement, even if the relationship between the Client and a party to whom
bd.com has introduced Client prior to termination of this Letter Agreement is
formalized or otherwise develops within two (2) years subsequent to the
termination of this Letter Agreement.

Your signature below indicates your agreement with the terms and conditions
contained herein. We look forward to working with you.

                                Very truly yours,

                                BusinessDevelopment.com, LLC

                                By:
                                   -------------------------------
                                    Michael Alpert
                                    President & CEO

Agreed to and Accepted:

Essential Reality, LLC

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

                                       65
<PAGE>

                                 ATTACHMENT "A"

                               GENERAL PROVISIONS

1. INDEPENDENT CONTRACTOR. bd.com and Client acknowledge that they are
independent contractors and that no employer/employee or joint venture
relationship is created by the Letter Agreement. Other than bd.com acting as
Client's representative in respect of the services described on this Attachment
A to the Letter Agreement, bd.com does not have any right to act on behalf of
Client or to represent that it has such right or authority, unless expressly
provided by prior written agreement signed by Client and bd.com. All services
performed by bd.com shall be at such times and in such manner as bd.com shall
determine.

2. REPRESENTATIONS AND WARRANTIES. (a) Each party has taken all corporate action
necessary for the authorization, execution and delivery of this Letter Agreement
and this Letter Agreement constitutes the legal, valid and binding obligation of
both parties, enforceable against each other in accordance with its terms except
as enforcement may be limited by any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors' rights generally and except
as enforcement may be limited by general principles of equity.

(b) Client shall provide bd.com with such information about Client as bd.com
shall reasonably request. No document, exhibit, schedule, statement, certificate
or other writing furnished to bd.com by or on behalf of Client, pursuant to this
Letter Agreement or otherwise, will contain, any untrue statement of a material
fact or will omit to state a material fact necessary to make the statements
contained herein and therein not misleading.

3. INDEMNITY. Client shall indemnify, defend and hold bd.com (and its members,
directors, officers, employees, agents, affiliates, controlling parties and
representatives on Client's Board of Directors) harmless from and against all
claims, liability, loss or damage, together with all reasonable costs and
expenses related thereto (including legal and accounting fees and expenses),
arising from the performance of its obligations under this Letter Agreement
other than those resulting from the gross negligence or willful misconduct of
bd.com or its representatives.

4. ASSIGNMENT OF RIGHTS. Neither party shall be entitled to assign its rights or
obligations under this Letter Agreement without the express written consent of
the other party; PROVIDED, however, that the rights and obligations of bd.com
hereunder may, in whole or in part, be sold, transferred or assigned by bd.com
to any parent, subsidiary, affiliated or successor entity.

5. NONSOLICITATION. Client agrees not to solicit or hire any of bd.com's
employees or former employees, without bd.com's prior written consent, during
the course of this Letter Agreement and for a period of one (1) year thereafter.

6. NON-EXCLUSIVE RELATIONSHIP. (a) The parties acknowledge that this Letter
Agreement does not create an exclusive relationship between them and that bd.com
is not precluded from providing similar services to a competitor or potential
competitor of Client and Client is not precluded from retaining a competitor or
potential competitor of bd.com to provide Client with similar services.

(b) Client further acknowledges that introductions, strategic relationships
and/or joint ventures facilitated on behalf of Client pursuant to the services
provided under the Letter Agreement may be provided to and on behalf of another
client of bd.com and that bd.com may be receiving compensation from such other
client as well for the introduction and facilitation of any such relationships.
Client further acknowledges and agrees that in any such event of the provision
of services hereunder involving the Client and another client of bd.com, that
bd.com shall be deemed to have used its good faith best efforts in facilitating
the subject relationship between both such clients of bd.com in a fair manner
and Client shall have no claim against bd.com asserting otherwise.

7. PRESS RELEASES; PUBLIC DISCLOSURE. (a) During the term of this agreement,
bd.com shall be able to issue press releases and other marketing or other
written materials in respect of bd.com's services provided to Client, after
obtaining prior approval from Client. bd.com shall send Client a copy of each
communication promptly following release of such information.

(b) bd.com may post on their Web site the Client's name (including any logos,
trademarks or other intellectual property) and a description of their business
purpose.

                                                                        INITIAL:
                                                                         -------
                                                                         -------

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<PAGE>

(c) Notwithstanding anything contained herein to the contrary, nothing contained
herein shall be construed as limiting bd.com's ability to make use of any
information provided to bd.com by Client in connection with carrying out its
services hereunder.

(d) Client agrees that under no circumstances shall it issue any press releases,
make any posting on their Web site(s) or make any communication or otherwise
disseminate any information in any manner whatsoever, that relates, whether
directly or indirectly, to, bd.com, any relationship between bd.com and Client,
any of the services, introductions or transactions discussed herein or resulting
herefrom, or in any way relating to or arising from the subject matter of this
Letter Agreement, without bd.com's prior written consent.

8. ARBITRATION OF ALL DISPUTES. Any controversy or claim arising out of or
relating to this Letter Agreement shall be settled by arbitration in the City of
New York, State of New York, by a panel of three arbitrators, one of whom shall
be appointed by Client, one by bd.com and the third of whom shall be appointed
by the first two arbitrators. If the first two arbitrators cannot agree on the
appointment of a third arbitrator, then the third arbitrator shall be appointed
by the American Arbitration Association. The arbitration shall be conducted in
accordance with the American Arbitration Association, except with respect to the
selection of arbitrators which shall be as provided in this Section. The cost of
any arbitration proceeding hereunder shall be borne equally by Client and
bd.com; PROVIDED, HOWEVER, that Client and bd.com shall be responsible for the
attorneys' fees and expenses of their respective counsel. In the absence of
fraud, the award of the arbitrators shall be binding upon the parties and
judgment thereon may be entered in any court having jurisdiction thereof.

9. ENTIRE LETTER AGREEMENT; AMENDMENT. This Letter Agreement, sets forth the
entire understanding of the parties with respect to the subject matter hereof,
and supersedes all existing agreements between them concerning such subject
matter. No amendment to or modification of this Letter Agreement shall be valid
or binding unless made in writing and signed by the party against whom
enforcement thereof is sought.

10. EXPENSES. Except as otherwise specifically provided in this Letter
Agreement, Client and bd.com will bear their own expenses in relation to this
Letter Agreement and the matters contemplated hereby.

11. NOTICE. All notices or other communications required or permitted by this
Letter Agreement shall be in writing and effective when received, and delivery
shall be made personally or by (a) registered or certified mail, return receipt
requested, postage prepaid, or (b) a nationally recognized courier or (c)
confirmed facsimile transmission, addressed to the other party at the address
set forth in this Letter Agreement.

12. WAIVERS. No course of dealing nor any delay on the part of any party hereto
in exercising any rights hereunder shall operate as a waiver of any such rights.
No waiver of any default or breach of this Letter Agreement shall be deemed a
continuing waiver or a waiver of any other breach or default.

13. GOVERNING LAW. This Letter Agreement shall be governed, interpretedand
construed in accordance with the laws of the State of New York without giving
effect to its laws governing the conflicts of laws.

14. INVALIDITY. If any clause, paragraph, section or part of this Letter
Agreement shall be held or declared to be void, invalid or illegal, for any
reason, by any court of competent jurisdiction, such provision shall be
ineffective but shall not in any way invalidate or affect any other clause,
paragraph, section or part of this Letter Agreement.

15. COUNTERPARTS. This Letter Agreement may be executed simultaneously in two or
more counterparts, which may be by facsimile, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

16. SURVIVAL. The provisions of Sections 3, 5, 7 and 8 and shall survive the
termination of this Letter Agreement.

                                                                        INITIAL:

                                                                         -------

                                                                         -------

                                       67
<PAGE>

AMENDMENT   TO  THAT   CERTAIN   LETTER   AGREEMENT   EXECUTED  BY  AND  BETWEEN
BUSINESSDEVELOPMENT.COM, LLC AND ESSENTIAL REALITY, LLC

                  THIS FIRST AMENDMENT TO CLIENT AGREEMENT (this "Amendment") is
made and entered into as of the 1st day of September, 2001, by and between
ESSENTIAL REALITY, LLC ("Client"), and BUSINESSDEVELOPMENT.COM, LLC ("bd.com").

                              BACKGROUND STATEMENT

                  A. Client and bd.com entered into that certain Client
Agreement dated as of December 13, 2000 ("Client Agreement").

                  B. Client and bd.com have now agreed to modify the Client
Agreement and amend it as set forth in this Amendment.

                             STATEMENT OF AGREEMENT

                  NOW, THEREFORE, for and in consideration of the mutual
covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Client and bd.com
hereby covenant and agree as follows:

                  1. DEFINED TERMS. Except as otherwise expressly defined in
this Amendment, all capitalized terms herein will have the same meaning herein
as ascribed to such terms in the Client Agreement.

                  2. RETAINER. The Retainer shall be equal to a monthly retainer
having a current total value of $15,000 USD, payable, in full, in cash,
beginning September 1, 2001 and, thereafter, within fifteen (15) days after the
end of each month.

                  3. REVENUE SHARE. With respect to any Transaction directly or
indirectly with a Prospect resulting from an introduction by BD during the term
of the Client Agreement (whether or not the Client Agreement has been terminated
prior to the time such Transaction is consummated or entered into), Client shall
pay to BD a fee equal to a percentage of the revenues that Client receives, or
has the right to receive from or as a result of the Transaction ("Gross
Proceeds"), payable in the form of cash and/or warrants, for 3 years from the
date Client receives it's first payment of such Gross Proceeds (such fee, the
"Revenue Share"). The Revenue Share shall be mutually agreed to by BD and Client
prior to the consummation of any Transaction but in no event shall the
percentage of such Revenue Share exceed 4%.

                  4. EXPENSES. Client hereby agrees that irrespective of any
other compensation agreements reached with bd.com, Client shall reimburse bd.com
for all expenses incurred by bd.com in connection with the performance of its
services pursuant to the Client Agreement which have been previously approved by
Client.

Except as amended hereby, the Client Agreement, including the compensation
arrangements set forth therein not otherwise modified hereby, shall remain in
full force and effect.

                  IN WITNESS WHEREOF, Client and bd.com have executed and
delivered this Amendment as of the day and year first above written.

<TABLE>
<CAPTION>

<S>                                      <C>
BUSINESSDEVELOPMENT.COM, LLC             ESSENTIAL REALITY, LLC

By:                                      By:
   -------------------------------          ------------------------------------
   President & CEO                          Name:
   Date:                                    Title:
                                            Date:
</TABLE>

                                       68Exhibit 10.6

                                                               [GRAPHIC OMITTED]

March 10, 2003

Essential Reality, Inc.
49 West 27th Street, Suite 7 East
New York, New York  10001

Attention:  Humbert B. Powell, III
            Chairman

Re:      Investment Banking/Advisory Agreement ("AGREEMENT")

Gentlemen:

         We are pleased to set forth the terms of the retention of First
Securities USA, Inc., member NASD/SiPC through its SBI USA division ("INVESTMENT
BANKER") by ESSENTIAL REALITY, INC. (collectively with its
affiliates,subsidiaries, successors, and assigns, the "COMPANY").

     1. The Company hereby engages the Investment Banker, and the Investment
Banker hereby accepts such engagement, as the Company's exclusive financial
advisor, for six (6) months from the date of this Agreement, in connection with
the management of a "PIPE" (private investment in public equity) private
placement (the "PRIVATE PLACEMENT") of equity securities, which may or may not
include common stock and warrants to purchase common stock (the "SECURITIES"),
of the Company, on a best efforts basis. Subject to the terms hereof, the
Company and the Investment Banker anticipate that the gross dollar amount of
Securities to be offered in the Private Placement shall be up to $5,000,000. The
minimum dollar amount for the Private Placement shall be $3,000,000. In
connection with its role as financial advisor, the Investment Banker would
expect its services to include assistance with the preparation of the Memorandum
(as hereinafter defined), as well as such other investment banking services as
may be mutually agreed upon by Investment Banker and the Company.

     2. In connection with the Investment Banker's activities on the Company's
behalf, (a) the Investment Banker will familiarize itself with the business,
operations, properties, financial condition, and prospects of the Company, and
(b) the Company will cooperate with the Investment Banker and will furnish the
Investment Banker with all information and data concerning the Company (the
"INFORMATION") which the Investment Banker deems appropriate and will provide
the Investment Banker with access to the Company's officers, directors,
employees, independent accountants, and legal counsel. The Company represents
and warrants that, to the Company's knowledge, all Information made available to
the Investment Banker by, or on behalf of, the Company will, at all times during
the period of engagement of the Investment Banker hereunder, be complete and
correct in all material respects and will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in the light of the circumstances under which
such statements are made. The Company further represents and warrants that any
projections provided by, or on behalf of, it to the Investment Banker will have
been prepared in good faith and will be based upon assumptions which, in light
of the circumstances under which they are made, are reasonable. The Company
acknowledges and agrees that, in rendering its services hereunder, the
Investment Banker will be using and relying on the Information without
independent verification thereof by the Investment Banker or independent
appraisal by the Investment Banker of any of the Company's assets. The
Investment Banker does not assume responsibility regarding the Company or any
other party. Any advice rendered by the Investment Banker pursuant to this
Agreement may not be disclosed publicly without our prior written consent.

                      FIRST SECURITIES USA, INC., MEMBER NASD/SIPC

                                       69
<PAGE>

March 10, 2003
Page 2

     3.  (a) The Private Placement shall be structured as a transaction exempt
         from Section 5 of the Securities Act of 1933, as amended (the
         "SECURITIES ACT"), and shall comply with Section 4(2) of the Securities
         Act and Regulation D thereunder and state securities law.

     (b) The Private Placement shall be structured to permit the initial closing
         (the "INITIAL CLOSING") thereof upon the receipt and acceptance by the
         Company of $3,000,000 of irrevocable subscriptions for the Securities,
         together with payment therefor, and additional closings (each an
         "ADDITIONAL CLOSING") from time to time thereafter until the receipt
         and acceptance by the Company of irrevocable subscriptions for a
         maximum of $5,000,000, unless the Company and the Investment Banker
         shall otherwise agree. The feasibility of the Private Placement will
         depend upon the results of the Investment Banker's investigation of the
         Company, information, including the Information about the Company that
         the Investment Banker may receive including, but not limited to, due
         diligence reports concerning the Company's operations, management, and
         business plan, and the continuation of the operation of the Company
         without material adverse change.

     (c) The Investment Banker shall be entitled to invite to participate in the
         Private Placement such other member firms of the National Association
         of Securities Dealers, Inc. and certain qualifying foreign entities, as
         it shall determine. The aggregate compensation payable to the
         Investment Banker pursuant to Paragraph 4 hereof shall be allocated by
         agreement between the Investment Banker and such other firms (the
         Investment Banker and such other firms participating in the Private
         Placement, collectively, the "PLACEMENT AGENTS"), and may be contained,
         in the discretion of the Investment Banker, in the Sales Agreement (as
         hereinafter defined). The Investment Banker may, in its sole
         discretion, agree with the other Placement Agents to act as the
         representative thereof.

     (d) The Company will use best efforts to promptly prepare a Confidential
         Offering Memorandum (the "MEMORANDUM") relating to the Private
         Placement. The Company will also endeavor in good faith, in cooperation
         with the Placement Agents and counsel to the Placement Agents, whenever
         requested by the Investment Banker, to qualify the Securities and the
         securities issuable upon the conversion, exchange, or exercise thereof,
         as applicable, the Agent's Warrants (as hereinafter defined), and the
         securities issuable upon the exercise of the Agent's Warrants, and all
         underlying securities, if any, for offer and sale under the applicable
         securities laws of such jurisdictions as the Investment Banker may
         reasonably designate, provided, however, that the Company shall not be
         required thereby to qualify to do business in any jurisdiction in which
         it is not otherwise engaged in business and shall not be required to
         subject itself to general service of process in connection therewith.

     (e) The Company and the Investment Banker shall enter into a Sales Agency
         Agreement (the "SALES AGREEMENT") which shall contain the definitive
         terms of the Private Placement.

     (f) The Private Placement will be qualified for sale by the Investment
         Banker's counsel with the Securities and Exchange Commission ("SEC")
         and in every state of residence of every investor as required by law.
         The legal fees, not to exceed $500 per state, and the state filing fees
         as set by each state's statutes, for qualifying the offering in all
         states required shall be borne by the Company.

     4.  The Investment Banker shall be compensated for its services as follows:

     (a) The Company shall pay to the Investment Banker upon execution of this
         Agreement, a retainer of $25,000 (the "Retainer"). The Retainer shall
         be paid 100% in common stock of the Company. The calculation of the
         stock payment shall be performed based on the average of the closing
         prices for the five business days prior to the execution of the
         Agreement. The Investment Banker shall remit to the Company a designee
         list for issuance of the shares. Payment shall be due upon execution of
         this Agreement.

     (b) The Company shall pay to the Investment Banker at the Initial Closing
         and at each Additional Closing (each a "Closing"), commissions in cash
         equal to 10% of the aggregate gross proceeds of the Securities sold in
         the Private Placement.

     (c) (i) The Company will authorize, and the Investment Banker or its
         designees shall be entitled to receive at the Closing, purchase
         warrants (the "AGENT'S WARRANTS") for the purchase of a number of
         Securities equal to 10% of the number of Securities sold in the Private
         Placement. The Agent's Warrants will be exercisable for five years at a
         price per Security equal to 110% of the offering price per Security.
         Such warrants will contain standard net issuance (i.e., cashless
         exercise) and anti-dilution provisions.

                                       70
<PAGE>

March 10, 2003
Page 3

         (ii) The Company agrees, at its expense, to grant the Agent's Warrants,
         piggyback registration rights to register the Securities (the
         "UNDERLYING SECURITIES") issuable, directly or indirectly, upon the
         exercise of the Agent's Warrants for resale at any time during the term
         of the Agent's Warrants. The Company will bear all the costs of such
         piggyback registration, except for customary underwriting discounts and
         commissions. The Company shall not enter into any agreement or take any
         other step that would impair the registration rights of any of such
         holders granted hereby.

     5. The Company agrees to promptly reimburse the Investment Banker, upon
request from time to time, for all out-of-pocket expenses incurred by Investment
Banker (including fees and disbursements of counsel, and of other consultants
and advisors retained by Investment Banker) in connection with the matters
contemplated by this Agreement. Any expense incurred in connection with the
Private Placement in an amount in excess of $750.00 (other than those items
specifically listed below) shall require the prior approval of the Company. The
Investment Banker shall invoice the Company from time to time for out-of-pocket
expenses incurred with payment due upon receipt of the invoice. In addition, the
Company shall pay all of its costs and expenses incident to the purchase, sale,
and delivery of the Securities and the securities issuable upon the conversion,
exchange, or exercise thereof; all blue sky fees and expenses as set forth in
section 3(f); all fees of the counsel to the Investment Banker not to exceed
$5,000; fees of counsel and accountants for the Company; printing costs,
including costs of printing the Memorandum and any amendments, supplements, or
exhibits thereto, including a reasonable quantity of Memoranda as determined by
the Investment Banker; and costs of background checks at $450 each if additional
research is not required.

     6. Indemnification.

     (a) Company Indemnity Obligations. The Company hereby agrees to indemnify
and hold harmless each Placement Agent and their respective affiliates, their
respective directors, officers, agents, and employees and affiliates, and each
other person, if any, controlling any such Placement Agent or any of their
respective affiliates from and against all claims, liabilities, losses, damages,
actions and expenses incurred, including fees and disbursements of counsel
related to or arising out of any untrue statement or alleged untrue statement of
a material fact contained in any private placement memorandum or in any
information (whether oral or written) or other documents furnished or made
available to Investment Banker by the Company or the omission or alleged
omission by the Company to state in any such documents or information a material
fact required to be stated therein or necessary to make the statements therein
not misleading.

     (b) Investment Banker Indemnity Obligations. Investment Banker agrees to
indemnify and hold the Company (including its agents, directors, officers,
employees and controlling persons within the meaning of Section 15 of the
Securities Act of 1933 or Section 20 of the Securities Exchange Act of 1934)
harmless from and against all claims, liabilities, losses, damages and expenses
incurred, including fees and disbursements of counsel related to any warranty,
representation or guarantee made by Investment Banker regarding the Company
beyond the information and materials furnished to Investment Banker by the
Company.

     (c) Indemnity Limitations. Notwithstanding the foregoing, neither party
shall be obligated to indemnify the other party or any of its agents, directors,
officers, employees or controlling persons under this agreement, with respect to
any claim, liability, loss, damage or expense that is finally judicially
determined to have resulted primarily from such party's gross negligence or
misfeasance.

     (d) Rights and Procedures. The indemnity rights and obligations shall be in
addition to any rights that any Indemnified Persons person or entity entitled to
indemnification hereunder (each an "Indemnified Person") may have at common law
or otherwise, including not limited to any right of contribution. If any
litigation or proceeding is brought against any Indemnified Person in respect of
which indemnity may be sought against a party pursuant hereto (the "Indemnifying
Party"), such Indemnified Person shall promptly notify the Indemnifying Party in
writing of the commencement of such litigation or proceeding, but the omission
to so notify the Indemnifying Party shall not relieve the Indemnifying Party its
obligation or liability which the Indemnifying Party may have to any Indemnified
Person under this agreement. If any action, proceeding, or investigation is
commenced as to which an Indemnified Person demands indemnification, the
Indemnified Person shall have the right to retain counsel of its own choice to
represent it, the Indemnifying Party shall pay the reasonable fees and expenses
of such counsel, and such counsel shall to the extent consistent with its
professional responsibilities cooperate with the Indemnifying Party and any
counsel designated by the Indemnifying Party; provided that the Indemnifying
Party shall not be responsible for the fees and expenses of more than one
counsel. In case any such litigation or proceeding shall be brought against any
Indemnified Person, the Indemnifying Party shall be entitled to participate in
such litigation or proceeding with counsel of the Indemnifying Party's choice at
the Indemnifying Party's expense.

                                       71
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March 10, 2003
Page 4

     7. The Company represents, warrants, and covenants that:

        (a)  There will be included in the Memorandum audited financial
             statements of the Company for the two fiscal years preceding the
             date of the Memorandum (reported on by a national accounting firm
             or an accounting firm reasonably acceptable to the Investment
             Banker) and, if requested by the Investment Banker, current
             unaudited comparative interim financial statements. The financial
             statements will present fairly the financial condition of the
             Company and the results of its operations and cash flows at the
             time and for the periods covered by such financial statements, and
             such statements will be substantially as heretofore represented to
             the Investment Banker.

        (b)  The Company has prepared and delivered to the Investment Banker its
             most recent financial statements and projections constituting its
             best estimate of revenues, earnings and cash flow and shall update
             such estimates on a monthly basis during the registration period.

        (c)  The Company shall secure director and officer liability insurance
             (provided that such insurance can be obtained at a reasonable cost
             as determined by the Company and the Investment Banker) in an
             amount and from an insurer reasonably satisfactory to the
             Investment Banker, provided that the amount of coverage shall not
             exceed that which is customary for companies of comparable size and
             in the same industry as the Company.

        (d)  The Investment Banker has advised the Company, and the Company has
             advised the Investment Banker, that neither has dealt with or
             engaged any finder in connection with the proposed Private
             Placement.

        (e)  For a three-year period from date of the Initial Closing, the
             Investment Banker shall have the right to appoint a designee
             observer to the Board of Directors of the Company, in the sole
             discretion of the Investment Banker. Such observer will have the
             right to attend all meetings of the Board of Directors, however,
             such observer shall have no voting rights. Such observer shall be
             entitled to receive reimbursement for all reasonable out-of-pocket
             expenses incurred in attending such meetings, including, but not
             limited to food, lodging, and transportation. The Investment Banker
             shall be given notice of such meetings at the same time and in the
             same manner as directors of the Company are informed. The
             Investment Banker and observer shall be indemnified to the same
             extent as the other directors.

        (f)  Until the date of the last Additional Closing, the Company will
             notify the Investment Banker promptly of the occurrence of any
             event which might materially affect the Private Placement or the
             status of the Company.

        (g)  If the Company and the Investment Banker determine to utilize the
             services of a financial printer in connection with the Private
             Placement, the Company agrees to use a printer which is reasonably
             acceptable to the Investment Banker and a stock transfer company as
             their transfer agent which is reasonably acceptable to the
             Investment Banker.

     8. The Company shall not use the name of the Investment Banker or of any of
the Investment Banker's divisions or affiliates in any promotional material,
press release or other written or oral communication without the express written
consent of the Investment Banker. Not withstanding the forgoing, the Investment
Banker's approval shall not be unreasonably withheld.

     9. The Investment Banker's intention as expressed in this Letter of Intent
is subject to the following general conditions:

        (a)  The Investment Banker shall be satisfied with the Company's
             progress as well as its outlook for the future.

        (b)  The Company will provide for appropriate "comfort letters" from its
             independent certified public accountants with respect to the
             audited financial statements and other financial information and
             other data contained in the Memorandum as specified in the Sales
             Agreement and with regard to the period from the date of the
             audited financial statements to a date a few days prior to both the
             offering date and the closing date.

        (c)  All relevant terms, conditions, and circumstances relating to the
             proposed Private Placement will be satisfactory to the Investment
             Banker and counsel to the Placement Agents.

        (d)  The Sales Agreement will contain appropriate representations and
             covenants of the Company, including reciprocal covenants of
             indemnity, and will provide for satisfactory opinions of counsel to
             the Company.

                                       72
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March 10, 2003
Page 5

        (e)  There will have been no materially adverse change in the business
             or financial condition of the Company, no materially adverse change
             in the overall capital markets in the United States, no declaration
             of a banking moratorium by the Federal government or New York
             State, no outbreak of major hostilities or other national or
             international calamity, and no action by any government in respect
             of its monetary affairs which has a material adverse effect on the
             United States securities markets, or other event which, in the sole
             discretion of the Investment Banker, would materially adversely
             affect its ability to complete the Private Placement.

     10. It is understood that the Investment Banker's undertaking to conduct
the proposed Private Placement is subject to the Memorandum, all amendments,
supplements, and exhibits thereto or other documentation related thereto, being
reasonably satisfactory to the Investment Banker and counsel to the Placement
Agents.

         The Investment Banker intends to proceed with the Private Placement
immediately after availability of the required final documentation and the terms
of this Letter of Intent and the Sales Agreement have been satisfied; provided,
however, that the Investment Banker reserves the right not to proceed with the
Private Placement if, in its sole judgment, market conditions are unsuitable for
such offering, or information comes to its attention relating to the Company,
its management, or its industry, which could, in the Investment Banker's sole
judgment, preclude a successful offering of the Securities.

         Except for the provisions set forth in Paragraphs 4, 5, 6, and 10 of
this Agreement, it is not intended to be, and shall not be construed as a
binding contract for the Private Placement. A legal obligation between the
Company and the Investment Banker for the Private Placement shall be only as set
forth in a duly negotiated and mutually executed written Sales Agreement which
shall be in form and content satisfactory to each of the Investment Banker and
the Company.

     11. As described in Paragraph 9, the Company and the Investment Banker
agree that the following provisions shall be legally binding on the Company:

          (a) If the Company or the Investment Banker decides not to proceed
              with the Private Placement for any reason whatsoever, all expenses
              incurred by the Investment Banker in connection with the Private
              Placement pursuant to Paragraph 5 will be repaid promptly by the
              Company in accordance with all provisions described herein.

          (b) If, after executing this Agreement and prior to the execution of
              the Sales Agreement, the Company elects not to expeditiously
              proceed with the Private Placement even though the Investment
              Banker is ready, willing, and able to conduct the Private
              Placement, then the Company agrees that (1) it will not sell any
              of its capital stock through another placement agent for a period
              of at least six months, or (2) if it does so, then the Company
              shall pay to the Investment Banker $50,000 in addition to the
              amounts paid to it pursuant to subparagraph (a) hereof, which the
              Company and the Investment Banker agree will be fair compensation
              to the Investment Banker for services performed with respect to
              the proposed Private Placement.

          (c) If prior to the final Additional Closing of the Private Placement
              and within a period of 12 months from the date hereof, the Company
              is acquired, merges, sells all or substantially all of its assets,
              or otherwise effects a corporate reorganization with any other
              entity and, as a result, the Private Placement contemplated hereby
              is abandoned by the Company (a "TRANSACTION"), then, in addition
              to any amounts paid to it pursuant to subparagraph (a) hereof, the
              Company shall pay the Investment Banker a cash fee of $50,000 in
              addition to the amounts paid to it pursuant to subparagraph (a)
              hereof, which the Company and the Investment Banker agree will be
              fair compensation to the Investment Banker for services performed
              with respect to the proposed Private Placement.

          (d) Commencing on the date hereof and terminating on the earlier of:
              (i) date of the Final Additional Closing; or (ii) the termination
              of either party of this Agreement, the Company shall refrain from
              negotiating with any other placement agent or investment banker or
              other person regarding a possible public or private offering of
              any of the Company's securities.

          (e) The Investment Banker and the Company agree that any controversy
              arising out of or relating to this letter of intent or proposed
              offering contemplated hereby, shall be settled by arbitration in
              Orange County, California in accordance with the rules then in
              effect on the National Association of Securities Dealers, Inc.

                                       73
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March 10, 2003
Page 7

     12. The validity and interpretation of this Agreement shall be governed by
the law of the State of California applicable to agreements made and to be fully
performed therein.

     13. The benefits of this Agreement shall inure to the respective successors
and assigns of the parties hereto and of the indemnified parties hereunder and
their successors and assigns and representatives, and the obligations and
liabilities assumed in this Agreement by the parties hereto shall be binding
upon their respective successors and assigns.

     14. For the convenience of the parties hereto, any number of counterparts
of this Agreement may be executed by the parties hereto. Each such counterpart
shall be, and shall be deemed to be, an original instrument, but all such
counterparts taken together shall constitute one and the same Agreement. This
Agreement may not be modified or amended except in writing signed by the parties
hereto.

           If the foregoing correctly sets forth the understanding we have
heretofore reached regarding the proposed Private Placement, please sign and
return the enclosed copy of this letter by March 10, 2003. If this Letter of
Intent is not signed by such date, and an extension has not been mutually agreed
upon in writing by the Company and the Investment Banker, this Letter of Intent
will be considered void. By accepting this letter, the Company agrees to keep
this letter and all terms confidential and not to "shop" it with any other
placement agents or underwriters.

Very truly yours,

SBI USA, A DIVISION OF:                   FIRST SECURITIES USA, INC.

BY:                                       BY:
    -------------------------------         -------------------------------
    SHELLY SINGHAL                          STANLEY C. BROOKS
    MANAGING DIRECTOR                       PRESIDENT

ACCEPTED AND AGREED TO

THIS _____ DAY OF _____________________, ________

ESSENTIAL REALITY, INC.

BY:
   --------------------------------
   HUMBERT B. POWELL, III
   CHAIRMAN

                                       74

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