Document:

<PAGE>   1

                                                                   EXHIBIT 10.19

                          Dated the 31 of August, 2000

                                 PHARMAPRINT INC
                                   ("Company")

                                       and

                          CAPITAL ALERT INVESTMENTS LTD
                                 ("Subscriber")

               ***************************************************

                          SHARE SUBSCRIPTION AGREEMENT

                                (PharmaPrint Inc)

               ***************************************************

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                           PAGE
                                                                           ----
<S>                                                                        <C>
1.      INTERPRETATION                                                      -1-

2.      AGREEMENT TO SUBSCRIBE AND ALLOT SHARES                             -2-

3.      SUBSCRIPTION PRICE                                                  -3-

4.      ALLOTMENT OF SUBSCRIPTION SHARES                                    -3-

5.      CONDITIONS PRECEDENT                                                -4-

6.      WARRANTIES AND UNDERTAKINGS BY THE COMPANY                          -5-

7.      SUBSCRIBER'S ACKNOWLEDGMENT                                         -7-

8.      FURTHER AGREEMENTS                                                  -8-

9.      ASSIGNMENT                                                          -8-

10.     REMEDIES FOR BREACH                                                 -8-

11.     LEGAL COSTS AND FEES                                                -8-

12.     ENTIRE AGREEMENT                                                    -8-

13.     PREVIOUS AGREEMENT                                                  -8-

14.     TIME OF THE ESSENCE                                                 -9-

15.     COUNTERPARTS                                                        -9-

16.     GOVERNING LAW; ARBITRATION                                          -9-

17.     ANNOUNCEMENT                                                        -9-

18.     NOTICES                                                             -9-
</TABLE>

<PAGE>   3

THIS AGREEMENT is made the 31 day of August, 2000 BETWEEN:

(1) PHARMAPRINT INC, a company incorporated under the laws of the Delaware,
United States of America and having its registered office situated at 4701 Von
Karman Avenue, Suite 201, Newport Beach, CA 92660, U.S.A. ("Company"); and

(2) CAPITAL ALERT INVESTMENTS LTD, a company incorporated under the laws of
British Virgin Islands and having its registered address at PO Box 957, Offshore
Incorporations Center, Road Town, Tortola, British Virgin Islands
("Subscriber").

WHEREAS:

A. The Company is a company duly incorporated under the laws of Delaware, U.S.A.
and the particulars of which as at the date hereof are set out in Schedule 1
hereto.

B. The Subscriber is desirous of (i) subscribing for 3,750,000 shares of common
stock of the Company and has applied to the Company for the issue and allotment
of shares in the Company and (ii) obtaining an option to acquire an additional
2,500,000 shares of common stock of the Company, which the Company has agreed to
issue and grant, respectively, in the manner as hereinafter appearing.

NOW IT IS AGREED as follows:

1. INTERPRETATION

1.01 In this Agreement the following words and expression shall have the
following meanings:

"Allotment" means allotment of the Subscription Shares pursuant to Clause 4.01
hereof;

"Allotment Date" means ten (10) days after the Subscription Price has been fully
paid by the Subscriber to the Company;

"Board" means the Board of Directors of the Company from time to time;

"Disclosed Matters" means the matters, transactions, dealings, acts and things
disclosed by the Company to the Subscriber prior to the signing hereof, as set
out in Schedule 2 hereto;

"Further Issue" means the issue of shares in the Company after the date of this
Agreement (whether by way of a single issue or multiple issues) to any third
party or parties at such price and upon such terms as the Company may in its
absolute discretion deem fit;

"Hong Kong" means the Hong Kong Special Administrative Region of the People's
Republic of China;

"Management Accounts" means the audited accounts (if any) and the unaudited
management accounts of the Company comprising a balance sheet as at the
Management Accounts Date and a

<PAGE>   4

profit and loss statement for the corresponding year end; copies of which are
annexed hereto as Schedule 3 hereto;

"Management Accounts Date" means March 31, 2000;

"Register of Members" means the Register of Members kept by the Company and
wherein the names and particulars of the registered shareholders of the Company
are written;

"Share" means the common stock of the Company;

"Share Options" means the following options to purchase registerable shares of
the Company's common stock within five (5) years from the date of this Agreement
granted by the Company as follows:

        (i) to the Subscriber for 500,000 shares at an exercise price of $0.375
        per share;

        (ii) to the Subscriber for 500,000 shares at an exercise price of $0.45
        per share;

        (iii) to the Subscriber for 1,000,000 shares at an exercise price of
        $1.00 per share;

        (iv) to the Subscriber for 500,000 shares at an exercise price of $1.25
        per share; and

        (v) to Hardy Chan for 150,000 shares at an exercise price of $0.375 per
        share.

"Subscription Price" means the consideration for the Subscription Shares and the
Share Options payable by the Subscriber to the Company, in the total sum of
United States Dollars One Million and Five Hundred Thousand (US$1,500,000)
payable in the manner as particularly described in Clause 3.01;

"Subscription Shares" means all those 3,750,000 shares of common stock of
US$0.001 par value of the Company, to be allotted by the Company to the
Subscriber as fully paid pursuant to Clause 2.01 hereof.

1.02 Headings in this Agreement are inserted for convenience only and shall be
ignored in construing this Agreement. Unless the context otherwise requires,
words denoting the singular number only shall include the plural and vice versa
and word denoting any gender shall include all the other genders.

2. AGREEMENT TO SUBSCRIBE AND ALLOT SHARES

2.01 In consideration of the payment of the Subscription Price by the Subscriber
to the Company in accordance with Clause 3.01 hereof, the Company shall allot
the Shares to the Subscriber on or before the Allotment Date and grant the Share
Options to the Subscriber subject to and upon the terms and conditions herein
contained but otherwise free from all encumbrance.

2.02 The Subscription Shares shall be issued and allotted to the Subscriber as
fully paid subject to the terms and provisions of the Certificate of
Incorporation and other constitutive documents of the Company as from time to
time in force.

<PAGE>   5

2.03 The Company agrees that the Subscription Shares will, when issued, rank
pari passu in all respect with all the existing shares of the Company, other
than the Company's Series A Preferred Stock, in issue prior to the Allotment
Date including the right to dividends and other distributions declared, made or
paid at any time after the Allotment Date.

3. SUBSCRIPTION PRICE

The Subscriber shall pay the Subscription Price at the Closing directly into an
escrow account maintained by Morrison & Foerster, LLP, and the Company agrees
that Morrison & Foerster, LLP, shall thereafter, on behalf of the Company, wire
$500,000 to the account of Kingsway PharmaPrint Asia Limited pursuant to the
Joint Venture Shareholders' Agreement between the parties hereto of even date
herewith and wire $1,000,000 to the accounts specified in writing by the
Company.

4. ALLOTMENT OF SUBSCRIPTION SHARES

4.01 The Company shall allot the Subscription Shares to the Subscriber or its
nominee as the Subscriber shall direct and cause the name of the Subscriber or
its nominee to be entered into the Register of Members as the registered holder
of the Subscription Shares and deliver the share certificate(s) in respect
thereof to the Subscriber or its nominee on or before the Allotment Date.

4.02 The Company, at its own expense, shall prepare and file as soon as
practicable (the "Filing Date") with the Securities and Exchange Commission (the
"SEC") a registration statement (the "Registration Statement") on Form S-1
covering the resale of the Subscription Shares provided that each Subscriber
shall have provided timely to the Company all information needed for the
Registration Statement regarding it and its plan of distribution. The Company
shall use commercially reasonable efforts to have the Registration Statement
declared effective by the SEC as soon as practicable thereafter. Notwithstanding
the foregoing, the Subscriber agrees that it shall not sell, transfer or
otherwise convey any interest in the Subscription Shares prior to the dates such
Subscription Shares are permitted to be sold pursuant to the schedule set forth
below:

(a) 30% of the Subscription Shares (1,125,000 shares) may be sold on and after
that date on which the Registration Statement is declared effective;

(b) another 30% of the Subscription Shares (1,125,000 shares) may be sold on and
after that date which is six (6) months from the date of this Agreement;

(c) another 20% of the Subscription Shares (750,000 shares) may be sold on and
after that date which is nine (9) months from the date of this Agreement; and

(d) the remaining 20% of the Subscription Shares (750,000 shares) may be sold on
and after that date which is twelve (12) months from the date of this Agreement.

4.03 Upon exercise of the Share Options, the Company shall, at its own expense,
prepare and file on the Filing Date with the SEC a registration statement (the
"Share Options Registration

<PAGE>   6

Statement") on Form S-1 (or such other form as is available) covering the resale
of the Share Options provided that each Subscriber shall have provided timely to
the Company all information needed for the Share Options Registration Statement
regarding it and its plan of distribution. The Company shall use commercially
reasonable efforts to have the Share Options Registration Statement declared
effective by the SEC as soon as practicable thereafter.

5. CONDITIONS PRECEDENT

The obligations of the Subscriber under this Agreement to consummate the
purchase of the Subscription Shares hereinafter shall be subject to the
satisfaction of each of the following conditions:

(a) The Company must have entered into the Joint Venture Shareholders' Agreement
and Licensing and Distribution Agreement, substantially in the form of the
document in Annexure A, with Capital Alert Investments Ltd. and Kingsway
PharmaPrint Asia Limited, respectively, on or before the date of this Agreement;

(b) The Company shall have agreed to set aside United States Dollar Five Hundred
Thousand (US$500,000.00) out of the Subscription Price in a segregated account
with the name of the joint venture (as stipulated in the Joint Venture
Shareholders' Agreement) as beneficiary on the terms and conditions to be agreed
between the Company and the Subscriber;

(c) The Company shall have agreed to contribute the money set aside under
paragraph (b) of this clause to the joint venture to be set up under the Joint
Venture Shareholders' Agreement;

(d) The Board of Directors of the Company shall have appointed Hardy Chan as a
director to the Board and Mr. Chan (or any replacement nominated by the
Subscriber) may not be removed without the approval of the Subscriber except by
a vote of the Company's shareholders for as long as the Subscriber is the owner
of 937,500 shares or more of the Company's Common Stock;

(e) The Company and Montecito Leasing Group, LLC, shall have executed amendments
to the Collateral Assignment of Patents and Trademarks, dated May, 2000, and the
Security Agreement, dated May, 2000, between the parties, in substantially the
form as reviewed and approved by the Subscriber; and

(f) Benjamin Wei shall have executed and delivered to the Subscriber a voting
trust agreement with respect to the Company's shares in a form acceptable to the
Subscriber.

6. WARRANTIES AND UNDERTAKINGS BY THE COMPANY

6.01 The Company represents and warrants to the Subscriber that:

(a) As of the date hereof, the authorized capital stock of the Company consists
of (i) Fifty Million (50,000,000) shares of Common Stock of which 17,155,767
shares are issued and outstanding and (ii) Five Million (5,000,000) shares of
preferred stock, 7005 which are issued and outstanding and designated as Series
A Convertible Preferred Stock. All issued and

<PAGE>   7

outstanding Shares of Common Stock and Preferred Stock have been duly authorized
and validly issued and are fully paid and nonassessable.

(b) Upon their issuance and delivery pursuant to this Agreement, the Shares will
be duly authorized and validly issued, fully paid and nonassessable and will be
free of any liens or encumbrances other than those created hereunder or by the
actions of the Subscriber. The issuance and sale of the Shares hereunder will
not give rise to any preemptive right or right of first refusal or right of
participation on behalf of any person. The offer, sale and issuance of the
Shares as contemplated by this Agreement are exempt from the registration
requirements of any applicable federal or state securities laws, and neither the
Company nor any authorized agent acting on its behalf will purposefully take any
action hereafter that would cause the loss of such exemption.

(c) The Management Accounts give a true and fair view of the financial position
of the Company as at the Management Accounts Date and the profit or loss of the
Company for the corresponding year end.

(d) Except as disclosed in the Company's filings with the SEC or drafts of the
Company's Annual Report or Form 10-K for the period ended March 31, 2000 which
have been provided to Subscriber as of August 14, 2000, (i) the business of the
Company has not been materially and adversely affected by the loss of any
important customer or source of supply or by any abnormal factor not affecting
similar businesses to a like extent and there are no facts which are likely to
give rise to any such effect; (ii) the Company does not have any material
capital commitments; (iii) the Company is not a party to any unusually onerous
contract or to any contract entered into otherwise than in the ordinary and
usual course of business or otherwise than on arm's length terms; and (iv) apart
from normal debt collection, neither the Company nor any person for whose acts
or defaults the Company may be vicariously liable is involved in any civil,
criminal or arbitration proceedings and no such proceedings and no claims of any
nature are pending or threatened by or against the Company or such person or in
respect whereof the Company is liable to indemnify any party concerned and there
are no facts likely to give rise to any such proceedings.

6.02 The Company represents and warrants to the Subscriber that:

(a) The Company is a corporation duly organized and validly existing under the
laws of the State of Delaware and is in good standing under such laws. The
Company 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.

(b) The Company has the power and authority to execute, deliver and perform this
Agreement and has taken all necessary corporate action to authorize the
execution, delivery and performance of this Agreement.

(c) This Agreement constitutes legal, valid and binding obligations of the
Company subject only to applicable bankruptcy, insolvency, reorganization and
similar laws affecting creditors' rights generally and there are no
circumstances subsisting and the Company is not aware of any

<PAGE>   8

circumstances which may in the foreseeable future arise which might cause this
Agreement to cease to be its legal, valid and binding obligations.

(d) 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 any provision of the Company's Certificate of Incorporation, bylaws
or any amendments thereto. 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, or give rise to a right of
termination, cancellation or acceleration of any material obligation or to a
loss of any material benefit, under 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
Company, its properties or assets and which would have a material adverse effect
on the Company's business and financial condition.

(e) There is no action, proceeding or investigation pending, or to the Company's
knowledge threatened, against the Company that questions the validity of this
Agreement, or the right of the Company to enter into this Agreement, or to
consummate the transactions contemplated hereby, nor is the Company aware that
there is any basis for the foregoing.

(f) No consent, approval or authorization of or registration, qualification,
designation, declaration or filing with any governmental authority on the part
of the Company is required in connection with the valid execution and delivery
of this Agreement, or the offer, sale or issuance of the Shares hereunder, or
the consummation of any other transaction contemplated hereby.

(g) Except as described in the Company's SEC filings and other than the Shares
and Share Options, there are no other outstanding securities, debt or equity
presently convertible into Common Stock.

(h) Except as set forth in the schedules to the Licensing and Distribution
Agreement, it is the sole and rightful owner of all right, title and interest in
and to the Patented Technology and the Licensed Marks (both as defined in the
Licensing and Distribution Agreement) and all related intellectual property
rights therein or holds adequate licenses or otherwise holds all rights
necessary to use the Patented Technology and the Licensed Marks and all related
intellectual property rights therein free and clear of all liens, claims and
encumbrances, and it has the unrestricted right to market, license and exploit
the Patented Technology and the Licensed Marks and all related intellectual
property rights therein and such marketing, licensing and exploitation of the
Patented Technology and the Licensed Marks and all related intellectual property
rights therein will in no way constitute an infringement or other violation of
any patent, copyright, trade secret, or trademark or other third party rights;

(i) Except as set forth in the schedules to the Licensing and Distribution
Agreement, no claims have been made in respect of the Patented Technology or
Licensed Marks and any related intellectual property rights therein and no
demands of any third party have been made pertaining to them, and no proceedings
have been instituted or are pending or, to the best of its knowledge, threatened
that challenge the rights of the Company in respect thereof.

<PAGE>   9

6.03 For as long as the Subscriber is the owner of 937,500 shares or more of the
Company's Common Stock, upon the request of Subscriber, the Board of Directors
of the Company shall appoint two (2) persons nominated by the Subscriber (the
"Subscriber Directors") as directors to the Board and those two directors may
not be removed without the approval of the Subscriber except by a vote of the
Company's shareholders (as provided in Clause 5(d), Mr. Chan shall initially be
one of the Subscriber Directors);

6.04 The Company covenants and agrees that, subject to the exercise of the
fiduciary duties of the directors of the Company in good faith, it shall
nominate the Subscriber Directors for election by the Company's stockholders at
the next scheduled stockholders meeting where directors are elected if so
requested by Subscriber.

7. SUBSCRIBER'S ACKNOWLEDGMENT

7.01 The Subscriber acknowledges that it has been advised by the Company of the
nature and particulars of the Disclosed Matters and copies of all the documents
referred to in Schedule 2 have been provided by the Company to the Subscriber,
to the extent requested, prior to the signing hereof and the Subscriber shall be
deemed to have agreed to subscribe for the Subscription Shares with full
knowledge of the Disclosed Matters.

7.02 The Subscriber acknowledges that no warranty or representation other than
those as set out in this Agreement has been given to the Subscriber (whether by
the Company or other persons or companies) and the Subscriber is entering into
this Agreement solely in reliance of the warranties and representations herein
contained and its own investigation.

8. FURTHER AGREEMENTS

8.01 The Subscriber acknowledges that the Company may invite third parties to
acquire shares in the Company from time to time.

8.02 For the avoidance of doubt, the Subscriber acknowledges that upon Further
Issue, the shareholding of the Subscriber shall be diluted accordingly.

9. ASSIGNMENT

This Agreement shall be binding on and enure for the benefit of the successors
of each of the parties but shall not be assignable by any party hereto save and
except with the prior written consent of the other party hereto, which consent
shall not be unreasonable withheld.

10. REMEDIES FOR BREACH

Any remedy conferred on each of the parties hereto for breach of this Agreement
shall be in addition and without prejudice to all other rights and remedies
available to it and the exercise of or failure to exercise any remedy shall not
constitute a waiver by the related party of any of its rights or remedies.

<PAGE>   10

11. LEGAL COSTS AND FEES

11.01 Each party hereto shall bear its own legal costs and expenses of and
incidental to the preparation, negotiation, approval and completion of this
Agreement.

11.02 All fees (including share premium fees) payable in connection with the
allotment of the Subscription Shares to the Subscriber (if any) shall be borne
and paid by the Company absolutely.

12. ENTIRE AGREEMENT

This Agreement constitutes the whole agreement between the parties relating to
the subject matter herein (no party having relied on any representation made by
any other party which is not a term of this Agreement) and no future variation
of any term of this Agreement shall be effective unless made in writing and
signed by each of the parties.

13. PREVIOUS AGREEMENT

This Agreement shall supersede all and any previous agreements or arrangements
between the parties hereto relating to the Company, the Property or to any other
matter referred to in this Agreement and all or any such previous agreements or
arrangements (if any) shall cease and determine with effect from the date
hereof.

14. TIME OF THE ESSENCE

Time shall be of the essence in every respect of this Agreement.

15. COUNTERPARTS

This Agreement may be executed in any number of copies or counterparts and by
the different parties hereto on separate copies or counterparts and which
together shall constitute one agreement.

16. GOVERNING LAW; ARBITRATION

16.01 This Agreement (excluding the matters referred in Clause 16.02) shall be
governed by and construed in accordance with the laws of Hong Kong.

16.02 Notwithstanding any provision herein contained, the management and
operation of the Company and its Certificate of Incorporation and other
constitutive documents shall be governed by and construed in accordance with the
laws of Delaware, U.S.A. and all laws relating to companies in force in the
U.S.A. shall apply to the Company.

16.03 The Parties agree to submit all disputes arising out of this Agreement to
arbitration in Hong Kong in accordance with the Model Law on International
Commercial Arbitration adopted by the United Nations Commission on International
Trade Law.

<PAGE>   11

17. ANNOUNCEMENT

Neither party shall make any public announcement in relation to the transactions
the terms of which are set out in this Agreement or the transactions or
arrangements hereby contemplated or herein referred to or any matter ancillary
hereto or thereto without the prior written consent of the other party (which
consent shall not be unreasonably withheld or delayed).

18. NOTICES

Any notice required or permitted to be given hereunder shall be in writing and
shall be (a) personally delivered, (b) transmitted by internationally recognized
air courier service, or (c) transmitted by facsimile, in each case to the
parties as follows, as elected by the party giving such notice, to the other
parties at the addresses set forth on the first page of this Agreement or as
amended by notice pursuant to this subsection. Except as otherwise specified
herein, all notices and other communications shall be deemed to have been duly
given on (i) the date of receipt if delivered personally, (ii) three (3)
Business Days after delivery to the courier, or (iii) the next Business Day in
the jurisdiction of the recipient following the date of transmission with
electronic confirmation if transmitted by facsimile, whichever shall first
occur. Any party may change its address for purposes hereof by notice to the
other parties. All notices and other communications shall be in the English
language.

        AS WITNESS the hands of the parties hereto the day and year first above
written.

                                      PHARMAPRINT INC.

                                      By:
                                      Name:  Steven A. Bowman
                                      Its:   Chief Executive Officer

                                      CAPITAL ALERT INVESTMENTS LTD

                                      By:
                                      Name:
                                      Its:

<PAGE>   12

                                   SCHEDULE 1

                          (Particulars of the Company)

1.      Place of incorporation      :       Delaware, U.S.A.

2.      Date of incorporation       :       September 1995

3.      Registered office           :       Corporation Trust Center
                                            1209 Orange Street, Wilmington,
                                            Delaware

4.      Company Registration No.    :       33-0640125

5.      Authorised share capital    :       US$50,000.00 made up of 50,000,000
        shares of US$0.001 each             shares of Common Stock

6.      Issued share capital        :       US$17,155.78 of 17,155,767 shares of
                                            US$0.001 each, US$7.00 of 7,005
                                            shares of Series A Preferred Stock
                                            of US$0.001 each.

7.      Existing directors:                 Phillip G. Trad      John Abeles
                                            Elliot P. Friedman   Nathan Troum

8.      Existing Secretary:                 Phillip G. Trad

<PAGE>   13

                                   SCHEDULE 2

                               (Disclosed Matters)

All those matters, transactions, dealings, acts and things referred to or
mentioned in the following documents copies of which have been provided to the
Subscriber prior to the signing hereof, to the extent requested:

1.      Bylaws of the Company.

2.      Certificate of Incorporation of the Company.

<PAGE>   14

                                   SCHEDULE 3

(Management Accounts)James H. Wiesenberg
                          10040 E Happy Valley Rd. #454
                            Scottsdale, AZ 85255-2388
                                 jimweis@aol.com

                                October 27, 2000

Mr. Joseph P. Gebbardt
As an individual guarantor
And as Managing Member of
And on behalf of
New Wave Networks LLC
250 South Martin
Zephyr Cove, Nevada 89448

Dear Joe:

I have received some  telephone  calls and  correspondence  from Mr.  Douglas C.
MacLellen,  who represented that the is acting on your behalf in the capacity of
merchant  banker.  As you know, Mr. MacLellan has urged me to accept a payoff of
my loan to New Wave  Networks,  LLC ("NWN") and has indicated  that NWN, Joe and
Prime  Companies,  Inc  ("Prime")  desire  that I accept a payoff of my loan and
letter of intent for the  exchange of stock in Prime for 100% of the  membership
interest in NWN.  Mr.  MacLellan,  as you know,  has asked me to sign a separate
letter  that  would be  signed  only by me,  you and NWN.  In either  case,  Mr.
MacLellan  tells  me that  the  desire  of  you,  NWN  and  Prime  is that I not
participate  in the equity  exchange and that I accept  certain cash in exchange
for outstanding  principal and accrued  interest owed to me or that will be owed
to me by NWN.

As I have expressed to Mr. MacLellan,  I am not adverse to that concept.  But, I
need to ensure that  certain  protections  of my loan remain in place  pending a
payoff,  and  that I have  the  opportunity  to  reconsider  foregoing  my  loan
conversion  right  in the  event  that  there  is any  increase  by Prime in the
proposed  payments to you or anyone else who is connected with NWN.  Further,  I
will need direct  assurances  from Prime in the binding  letter of intent and in
the  definitive  agreement  that my loan will be paid if the deal between Prime,
NWN and you ultimately closes.  Finally,  as a creditor,  I do not believe it is
appropriate  for me to sign the binding  letter of intent or any other  document
which  memorialized  the proposed merger between Prime and NWN.  Accordingly,  I
will not sign the binding letter of intent and although its form may be attached
to this letter, it is not binding on me in any way.

To  ensure  that my  concerns  are  adequately  addressed,  I hap  prepared  the
following  offer to NWN and you.  This offer  describes  what I will do and what
you,  NWN and Prime will be  required  to do to  address  what you want from me.
Please bear in mind that this offer can be  withdrawn by me at any time prior to
is acceptance for any reason or no reason at all.. Further, this offer cannot be
accepted  by one or more,  but less  than  all,  of you and NWN.  Finally,  your
acceptance  of this offer will not be  complete  until I receive  nine  thousand
dollars  ($9,000.00)  by wire  transfer in payment of interest  due me under the
loan  agreement  through  August 20,  2000.  Thus,  I will  continue to have the
absolute right to withdraw this offer even after it is fully signed if that wire
transfer  has not been  completed.  I hope you  understand  what I am  trying to
accomplish.

Here are the offer terms:

         1. During the period between  October 27, 2000 and February 20, 2001. I
will not  exercise my options to convert the whole or any part of my loan to NWN
to membership interests in NWN, provided, however, that I will cease being bound
by this  non-conversion  pledge in the event of (a) any incurred  default of the
loan  agreement by either NWN or you, (b) any amendment to the binding letter of
intent

------------------------
1 Wire transfer instructions appear at the end of this letter.

<PAGE>

attached  hereto  (and  bearing my  counsel's  initials  solely for  purposes of
identification).   (c  the  execution  of  any  agreement  or   superceding   or
implementing  that  letter of intent  that  provides  for  greater or  different
consideration  to  you,  anyone  associated  with  NWN or  with  respect  or NWN
membership  interests that is provided in the attached letter of intent, (d) the
abandonment of the merger  described in the attached  letter of intent by one or
more of the  signatories  to it, or (e) the  failure of the  signatories  to the
attached  letter  of intent to one or more of the  signatories  to the  attached
letter of intent to execute  and to deliver to me by  December  31, 2000 a fully
executed and  effective  agreement  (the "Merger  Agreement")  implementing  the
attached  letter of intent.  Each of you and NWN agree to promptly  inform me of
the details of any of the conditions (a) through (d) after any one of you obtain
any notice of the condition.

2. If the closing of the Merger Agreement occurs on or before December 31, 2000,
Prime shall pay me  US$550,000.  If the closing of the Merger  Agreement  occurs
after December 31, 2000, Prime or NWN shall pay me in addition $175 for each day
after December 31, 2001 up to and including the closing time. I am not obligated
to perform the arrangement outlined in this letter if all necessary  application
and forms to the FCC and all assignments and transfers are not posted for public
notice on or before  February 20, 2001.  Accordingly,  this  arrangement is void
after that date unless extended by me through written  correspondence to you and
NWN. The amounts set forth in this paragraph 2 do not include  reimbursement  of
interest that would apply if the default rat of interest were applied to my loan
to NWN or amounts that I incur in  collection  or attempts to collect or enforce
the loan agreement. Those amounts also must be paid. The February 20, 2001 dates
appearing in paragraphs 1 & 2 of this letter will be extended  until the earlier
of 5 days after the grant of the FCC's consent to the transfer of control of NWN
to Prime or April 20, 2001.

3. In exchange for the payments  required by paragraphs 1 &2, I will execute UCC
Lien releases on NWN's assts, including license rights, and will tender to NWN a
receipt  for the amount  under  paragraph  2,  above.  The closing of the Merger
Agreement and the delivery of those lien releases,  the delivery of that receipt
and the delivery of the cash specified in paragraph 2 will occur simultaneously,
with the recipe of such money being a condition precedent to the delivery of the
lien release and receipt.  To ensure an orderly closing, a face-to-face  closing
conference  will be held where the lien releases and the receipt will he held in
escrow  pending  the  receipt  of  confirmation  that the  moneys  specified  in
paragraph 2 have in fact been received by me. Wire transfer instructions for the
delivery of those  moneys will be the same as listed at the end of this  letter,
unless I provide you with different  instructions,  which different instructions
will be deemed substituted for those at the end of this letter.

4. Upon my delivery of that  receipt and those lien  releases and subject to the
following  exemption,  you and NWN shall be deemed to have  release  me from any
claim or  liability  and I shall be deemed to have  release you and NWN from any
claim or liability.  The exception to those  releases shall be claims based upon
my fraud or claims  based  upon the fraud of you or NWN.  After the  payment  of
those moneys to me, neither NWN, you nor Prime may seek the restoration of those
moneys.  It is understood  that after that  payment,  each of NWN, you and Prime
stands behind and assures my right to retain and use those moneys. By paying the
moneys  to me as per  paragraph  2, you and NWN will  also be  representing  and
warranting  to me that none of the  conditions  (b),  (c), or (d) in paragraph 1
above,  have  occurred..  In the event that any court of competent  jurisdiction
requires me to repay any of those moneys,  then, my security  interests under my
loan agreement will be automatically  restored,  you shall remain a guarantor of
the unpaid amount and NWN's other  obligations  under the loan agreement and you
and NWN will take such  actions  promptly  as is required to restore my security
interests to first priority liens.

5. By signing this offer,  I am  representing  (subject to the execution of this
document by you and NWN) that I have the  authority  to enter into an  agreement
based  upon this  offer.  By  signing  this  offer,  each of you and NWN will be
representing  to me that he or it has  authority to execute this document and is
not  insolvent.  Any loss resulting from any  misrepresenting  party  (including
payment t of the attorney's fees of the party to whom the  misrepresentation was
made).  The loan  agreement  between NWN and me, as  guaranteed by you remain in
full force and effect and is unchanged  except as amended by this letter. A copy
of the loan  agreement is attached to this letter for your  convenience.  Please
bear in mind that the time frames  provided in this offer are of the essence and
will be strictly adhered to by me.

<PAGE>

If this  arrangement  meets your  approval,  then please execute this letter and
return it by fax to me plus mail your original signature too. When I receive fax
and original respectively, I will send each back to you similarly.

Thank you in advance for your  cooperation  and best wished on the completion of
this merger.

Sincerely,

/s/ James H. Wiesenberg
-----------------------------
James H. Wiesenberg

Attachments

cc  Mr.  Douglas C. MacLellan
     Tom Dougherty, Esq.
     (both w/attachments)

ACCEPTED:

NEW WAVE NETWORKS, LLC

By:  /s/
----------------------------
Joseph P. Gebhardt
Managing Member

JOSEPH P. GEBHARDT

By:  /s/
----------------------------
Joseph P. Gebhardt
A natural person

<PAGE>

                                October 27, 2000

                            BINDING LETTER OF INTENT

                                     between

                              New Wave Networks LLC

                                       and

                              Prime Companies, Inc.

 relating to the non-taxable acquisition of issued Units in the Unit capital of

                              NEW WAVE NETWORKS LLC

<PAGE>

     This Binding Letter of Intent (the "Agreement") is made on October 27, 2000

     Between:

     (1)  NEW WAVE  NETWORKS  LLC, a Nevada  limited  liability  company,  whose
          United  States  representative   offices  are  at  250  South  Martin,
          Stateline, Nevada 89448 ("NWN"); and

     (2)  PRIME COMPANIES,  INC., a company  incorporated  under the laws of the
          State of  Delaware,  whose  United  States  offices  are at 409 Center
          Street, Yuba City, California, 95991-5400 ("PCI").

     It is  agreed  that  the NWN and PCI  (herein  after  "the  Parties")  will
conclude a Definitive  Agreement (the  "Definitive  Agreement") no later than by
December 31, 2000 and will submit all  necessary  applications  and forms to the
FCC and all  assignments and transfers will be posted for public notice no later
than  February 20, 2000 and the Parties will  conclude the approved  Transaction
within 5 business  days of the receipt of FCC  approval  and no later than April
20, 2001 (the "Closing").  It is acknowledged  that Mr. Jim Wiesenberg is only a
creditor in the proposed  Transaction and is not a principal of NWN and does not
waive any of his rights  under his loan  agreements  with NWN.  This  Definitive
Agreement  and any FCC  approval  applications  are to be drafted by PCI's legal
council.  All expenses related to discussion,  negotiations and other activities
between the Company are the sole  responsibility  of the party that incurs them.
The following are terms and  conditions  that have been agreed to by the Parties
as deal points  within any  Definitive  Agreement.  Also see the attached  "side
letter"  executed  between and among NWN,  Mr.  Joseph P.  Gebhardt  and Mr. Jim
Wiesenberg and incorporated by reference herein.

1.   Sale or Exchange of Units

     NWN Unit holders  shall  exchange  Units  ("Units")  and PCI will  exchange
     Common Stock Shares in PCI  ("Shares"),  relying on (amongst  other things)
     the  representations,  warranties and undertakings to be structured under a
     Unit for Share  non-taxable  merger  transaction  that will be  necessarily
     considered  non-taxable  under United States Internal Revenue Service Rules
     and  Regulations and Code. NWN warrants that NWN will be debt free upon the
     Closing of the Transaction.

2.   Consideration

2.1  The  consideration  for NWN  Unit  holders  to enter  into  the  Definitive
     Agreement and  exchanging 100 percent of all  outstanding  Units in NWN and
     the elimination of Mr. Jim Wiesenberg's  outstanding  debt, PCI will pay at
     the Closing  US$550,000  directly to Mr. Jim Wiesenberg (plus US$175.00 per
     day in  additional  interest  if not paid by  December  31,  2000  which is
     deductable  from the US$50,000 in cash to be paid to NWN by PCI),  and will
     provide  US$50,000  in cash and  1,500,000  Shares of  Common  Stock in PCI
     directly to NWN Unit holders. As part of the
<PAGE>

     Closing of this Transaction Mr. Jim Wiesenberg,  Mr. Joseph P. Gebhardt and
     NWN agree to enter into a mutual  release  between  and among the  parties.
     This exchange ratio is based upon PCI's Common Stock shares being valued at
     $1.00 per common stock share and values NWN's gross 1990 POPs of 577,043 at
     US$3.63 per POP or a total transaction value of US$2,100,000.00 (made up of
     US$550,000 in debt  elimination,  US$50,000.00 in cash and 1,500,000 shares
     of PCI common stock).  This valuation  assumes  US$4.00 per POP for the `A'
     band license (386,507 POPs) or US$1,546,028.00  and US$2.90 per POP for the
     `B' band license (190,536 POPs) or  US$553,972.00.  The shares and the cash
     to be issued to NWN may be designated to multiple parties to be provided in
     a schedule within the Definitive  Agreement.  The Common Stock shares to be
     granted to NWN from PCI must be  registered  under the 1933 Act ("the Act")
     utilizing a  registration  statement.  The  registration  statement must be
     filed  with the SEC  within  120 days of the  execution  of the  Definitive
     Agreement.

2.2  Upon  execution of this  Binding  Letter of Intent PCI shall pay to NWN the
     non-refundable  sum of US$10,000.00  as a good faith deposit.  In the event
     that the Definitive Agreement is not executed this deposit will be retained
     by NWN as a break-up  fee. In the event that NWN  terminates  the Agreement
     then, NWN must refund the good faith deposit to PCI. NWN will not engage in
     business  combination  discussions  with any other company or  organization
     from the signing of this  Agreement  through  December 31,  2000.  The good
     faith  deposit  funds  are to be  wire  transferred  to the  account  to be
     provided by NWN within 2 business days of the execution of this  Agreement.
     In the event that the Definitive  Agreement is executed then the good faith
     deposit will be included as part of the cash  component  in the  Definitive
     Agreement.  The US$550,000 due to Mr. Jim Wiesenberg at the Closing will be
     wire transferred to an account(s) designated solely by Mr. Jim Wiesenberg.

2.3  Following the completion of the  Definitive  Agreement PCI agrees to review
     NWN business  plan and determine the capital needs of NWN and PCI agrees to
     arrange for debt and equity financing required in the business plan.

3.   Conditions

     Completion of the  Definitive  Agreement is  anticipated  to be conditional
     upon satisfaction of the following conditions:

3.1  PCI being satisfied on or before December 31, 2000 in its sole and absolute
     discretion  with a detailed and wide ranging due  diligence  exercise to be
     carried  out by it and  its  professional  advisors  on its  behalf  and in
     relation to the direct interests being acquired by virtue PCI's purchase or
     acquisition of the Units.

3.2  This proposed transaction is necessarily based upon PCI having access to an
     anticipated  equity  credit  line  that  would  allow  PCI to meet the cash
     components  of the  transaction.  In the event that PCI is unable to access
     this capital pool by 2/13/2000 the  transaction may be terminated by either
     party or extended upon the mutual consent of all Parties.
<PAGE>

3.3  Obtaining  all  necessary  consents  and  approvals  from  PCI's  and NWN's
     respective   Board  of  Directors  and,  if  necessary,   their  respective
     stakeholders.

3.4  The  Parties  to any  submission  for  the  approvals  of  issuance  and or
     registration  of the Shares of PCI, to be received by NWN's Unit holders in
     respect of the exchange of the Shares to the Securities Exchange Commission
     ("SEC")  shall be  prepared  by,  made in the name of and at the expense of
     PCI,  subject to the input of NWN and that all requests and enquiries  from
     any government, governmental, or regulatory body shall be dealt with by PCI
     and or NWN  in  consultation  with  each  other  and  each  shall  promptly
     co-operate  with and  provide  all  necessary  information  and  assistance
     reasonably  required by such government,  or agency upon being requested to
     do so.

3.5  In the event that NWN's debt  holder  (Mr.  Jim  Wiesenberg)  converts  his
     outstanding debt to Units in NWN or he does not accept US$550,000, plus any
     additional  interest if any accrued after  December 31, 2000, as payment in
     full for his debt with NWN, then PCI has the right to immediately terminate
     this Agreement. In the event that the Agreement is terminated by PCI due to
     Clause 3.5 then NWN will return the good faith deposit money.

3.6  NWN will  commence a 2 year and 9 month audit of its business  that must be
     completed  before the  completion of the  Definitive  Agreement.  The costs
     associated  with the audit will be  initially  underwritten  by PCI. In the
     event that the audit cannot be completed  by NWN,  then NWN will  reimburse
     PCI for any audit related costs paid by PCI.

4.   Employment Agreement:

4.1  Mr. Joseph P.  Gebhardt  will be provided by PCI with a one year  renewable
     employment agreement on the following terms.

4.2  Mr. Gebhardt's base salary will be US$78,000.00.

4.3  Mr. Gebhardt will receive a bonus plan of US$40,000.00,  to be paid half in
     cash and half in common stock calculated at the market value on the date of
     grant of any bonus,  if Mr.  Gebhardt  assists PCI in  acquiring a group of
     BTA's consisting of 1 million POPs and will be paid an additional US$40,000
     bonus under the same terms,  for each additional 1 million POPs acquired by
     PCI.

4.4  Mr.  Gebhardt will receive at the execution of the  Definitive  Agreement a
     total of 50,000  three year common  stock  options that will vest 1/12 each
     month over the period of the  Employment  Agreement.  The  options  will be
     priced  at the  closing  price  of  PCI's  common  stock on the date of the
     Closing and PCI agrees to register the  underlying  shares to these options
     during 2001 or before.
<PAGE>

4.5  Mr.  Gebhardt  will  receive  health  care  coverage  provided  through PCI
     equivalent to that of other senior executives at PCI.

4.6  Mr. Gebhardt's title shall be Head of Acquisitions. He will also be invited
     to attend any regular  sessions of PCI's Board of  Directors  meetings as a
     Senior Advisor on Acquisitions to the Board of Directors  during the period
     of his Employment Agreement.

4.7  In the event that Mr.  Gebhardt  is  terminated  without  cause  during the
     period of his Employment  Agreement,  all options will immediately vest and
     he will receive a severance payment in a lump sum of US$50,000.00.

<PAGE>

4.8  PCI agrees to interview and, if found appropriate, hire Mr. Lee Cluff as an
     employee to assist PCI and Mr. Gebhardt in general business and acquisition
     analyst at a starting salary of US$2,000 per month.

5.   Announcements

5.1  Pending completion of the Definitive Agreement,  the Parties shall, subject
     to the  requirements  of  law  or any  regulatory  body  or the  rules  and
     regulations of any recognized  stock exchange,  consult  together as to the
     terms of,  the  timetable  for and  manner of  publication  of,  any formal
     announcement or circular to shareholders,  employees, customers, suppliers,
     distributors  and  sub-contractors  and to any recognized stock exchange or
     other  authorities or to the media or otherwise  which any party may desire
     or be obliged to make regarding  this  Agreement.  Any other  communication
     which the Parties may make concerning the foregoing matters shall,  subject
     to the  requirements  of  law  or any  regulatory  body  or the  rules  and
     regulations of any recognized  stock exchange,  be consistent with any such
     formal announcements or circular.

6.   Notice

6.1  Any notice or other communication  requiring to be given or served under or
     in  connection  with this Binding  Letter of Intent shall be in writing and
     shall be sufficiently given or served if delivered or sent:

     In the case of NWN:

         Facsimile:        702-588-0805
                           Attention:       Mr. Joseph P. Gebhardt
                           President
                           P.O. Box 6928
                           250 S. Martin
                           Stateline, Nevada 89449
                           Tel: 775-588-1995

         In the case of PCI at its registered office:

         Facsimile:        530-671-3215
                           Attention:       Mr. N. J. Lima
                           President and CEO
                           409 Center Street
                           Yuba City, CA  95991-4500
                           Tel: 530-755-3580

7.   Counterparts

     This Binding Letter of Intent may be executed in any number of counterparts
     each of which shall be deemed an original,  but all the counterparts  shall
     constitute one and the same instrument.

          IN WITNESS  WHEREOF,  NWN and PCI have caused this  Binding  Letter of
     Intent to be duly executed as of the day and year first above written.

         New Wave Networks LLC                       Prime Companies, Inc.

 By:     ______________________________     By:      ___________________________
         Mr. Joseph P. Gebhardt                       Mr. N. J. Lima
         President                                    President and CEO

DCM/nhm

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