Document:

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                              MEMORANDUM OF AGREEMENT               EXHIBIT 10.1

                                   between

VALORINVEST LTD.
29 Quai des Bergues
CH-1201 Geneva
Switzerland
                                                          (hereinafter ,,Valor")
                                     and

ASP VENTURES CORP.
1177 West Hastings Street
Suite 1818
Vancouver, BC Canada V6E 2K3
                                                            (hereinafter ,,ASP")
                                     and

FELCO HOLDING ZUG AG
Chamerstrasse 18
CH-6301 Zug
Switzerland
                                                          (hereinafter ,,Felco")
                                     and

HANS BEAT FEHLMANN
Zugerstrasse 76
CH-6318 Walchwil
Switzerland

BEAT C. FEHLMANN
Eichholzweg 1c
CH-6312 Steinhausen
Switzerland

MATHIAS FEHLMANN
Giebelweg 4
CH-6343 Buonas
Switzerland

                                          (hereinafter collectively ,,Founders")
                                     and

VTZ VERSICHERUNGS TREUHAND
ZURICH AG
Bahnhofplatz 9
CH-8023 Zurich
Switzerland
                                                            (hereinafter ,,VTZ")

<PAGE>   2

Memorandum of Agreement
May 19, 1999
Page 2

This Memorandum of Agreement (the ,,Memorandum") is made by delivery of all
Exhibits and signature of all parties as of the date of the last signature (the
,,Memorandum Date,,), by and between Valor, ASP, Hans-Beat Fehlmann, Beat C.
Fehlmann and Mathias Fehlmann, individual citizens and residents of Switzerland,
Felco and VTZ to evidence the preliminary agreement among the parties.

1.       Founders and Felco represent that two patents (the ,,Patents,,) for
         light weight concrete structure as set forth on Exhibit 1 to this
         Memorandum have been issued to Hans-Beat Fehlmann as the inventor
         thereof (,,Inventor,,), or applied for in the countries listed on
         Exhibit 1, and have been exclusively licensed to Felco, that neither
         the Patents nor any rights therein have been pledged, assigned,
         licensed or otherwise transferred to any party other than Felco, that
         the Founders have other secret know-how for the manufacture and
         application of light weight concrete (the ,,Technology,,) presently
         exclusively licensed or placed at the disposal of Felco, and that Felco
         is engaged in the business of (i) developing and marketing applications
         of light weight concrete using the Patents and the Technology and (ii)
         assisting third party projects in applying the Patents and the
         Technology (jointly referred to as the ,,Business,,).

2.       ASP represents that the prices of sales of its shares are reported on
         the Over-the-Counter Bulletin Board maintained by the Nasdaq.

3.       ASP shall loan to Felco (the ,,Felco Loan,,), under the terms of the
         promissory note attached hereto as Exhibit 2, for use only as working
         capital, the sum of CHF 400'000.-- which shall be advanced CHF 200'000
         on the execution hereof and CHF 100'000 at the end of each 30 day
         period thereafter until the full amount has been advanced. The sums so
         advanced shall be repayable, together with 8% interest from the date of
         advance, on the earlier of (i) the ,,Financing,,(as defined below) or
         (ii) January 31, 2000; provided, however, that (a) if the "Closing" (as
         defined below) has not occurred within 45 days after the Memorandum
         Date, or (b) if any of the information or documents provided by Felco
         to ASP or Valor, directly or through the advisors of either, listed on
         Exhibit 6 to this Memorandum or any representations or warranties made
         by Founders or Felco in this Memorandum shall be false, misleading or
         incomplete in any material respect or (c) there shall occur a material
         adverse change in the business of Felco, upon notice given by ASP in
         its sole discretion (the ,,Notice"), no further advances shall be made
         and the entire amount advanced will be immediately due and payable and
         shall be paid by Felco to ASP without interest no later than 60 days
         from Felco's receipt of the Notice. Felco and Founders represent that,
         except for up to CHF50'000.-- expended or to be expended for properly
         justified and documented costs related to the transactions contemplated
         herein through the Closing, no portion of the Felco Loan shall be paid
         to or for the Founders, any of their relatives or associates or any
         party affiliated with any of them, or on account of debts owed or
         guaranteed by any of them except salaries not exceeding those
         previously and customarily paid. The Founders and VTZ shall not be
         liable for the Felco Loan which shall be repayable only out of the
         assets of Felco other than the exclusive license of the Patents or the
         Technology. For the purpose of making the Felco Loan, Valor agrees to
         loan to ASP funds ("Valor Loan") as requested by ASP pursuant and
         subject to the same terms and conditions as the Felco Loan as agreed in
         this Memorandum and the Promissory Note attached thereto as Exhibit 2.

4.       Founders agree to sell to ASP and ASP agrees to purchase from Founders
         upon Closing, all of the Founders' shares in Felco as shown on Exhibit
         3 to this Memorandum, free and clear of all claims or encumbrances, for
         a purchase price consisting of (a) three million common shares of ASP
         delivered upon Closing and (b) the sum of CHF 350'000.-- paid in cash
         to Founders on or before twenty-four months after the Memorandum Date.
         Such purchase price shall be delivered or paid to

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Memorandum of Agreement
May 19, 1999
Page 3

         each Founder pro-rata in the percentage of the total number of shares
         of Felco shown on Exhibit 3 purchased by ASP from such Founder.

5.       VTZ agrees to use its best efforts to cause each of those persons
         listed on Exhibit 4 to this Memorandum to sell to ASP and ASP agrees to
         purchase from each all of his shares in Felco, free and clear of all
         claims and encumbrances, for a purchase price consisting of an
         aggregate total of one million shares of the common stock of ASP
         delivered pro-rata to each of such persons in the percentage of the
         total number of shares in Felco shown on Exhibit 4 purchased by ASP
         from such person.

6.       The closing (,,Closing,,) on the transactions described in paragraphs 4
         and 5 above shall occur upon: (a) Valor, ASP, Felco and Founders
         agreeing upon and executing definitive agreements (,,Definitive
         Agreements,,), including those listed in Exhibit 5, implementing the
         transactions described herein or such adjusted transactions as the
         parties may mutually agree upon and (b) unless waived by ASP in its
         sole discretion, persons representing at least 91% of the shares of
         Felco having entered into binding agreements (,,Stock Purchase
         Agreements,,) with ASP for the purchase and sale of such shares. If
         persons representing less than 100% of the shares of Felco have entered
         into Stock Purchase Agreements with ASP at the time of the Closing,
         Founders and VTZ agree to use their best efforts to obtain such
         agreements from such persons after the Closing. At any time after 90
         days after the Memorandum Date, ASP shall have the right, in its sole
         discretion, to terminate any offer to purchase the shares of Felco held
         by persons who have not entered into Stock Purchase Agreements with
         ASP. At any time after 90 days after the Memorandum Date, ASP shall
         have the further right, in its sole discretion, to cause Felco to merge
         into ASP or a subsidiary of ASP; provided, however, that ASP shall own
         sufficient shares of Felco to cause such merger to occur under
         applicable law. Notwithstanding the foregoing, ASP shall be under no
         obligation to enter into a Stock Purchase Agreement with any person in
         any jurisdiction where doing so or the offering or sale of ASP shares
         to such person would require filing under the applicable securities
         laws and regulations or similar laws of any document other than a
         notice of such transaction not subject to discretionary review by the
         relevant authorities.

7.       Within 60 days of the Closing, but no sooner than June 30, 1999, Valor
         agrees to assist ASP, if desired by ASP, in the private placement (the
         ,,Bridge Financing,,) of debt or equity, as determined by Valor in its
         sole discretion, to provide up to US$ 500'000.-- of financing for ASP
         (excluding costs and commissions) subject to Valor's satisfaction with
         its due diligence of ASP, ASP's business plan and ASP's proposed use of
         proceeds. Any debt issued in a Bridge Financing shall be repayable out
         of the Financing. The total value of equity issued in a Bridge
         Financing shall reduce the amount of the Financing by the same amount.

8.       Within 120 days of the Closing, ASP shall file with the United States
         Securities and Exchange Commission (,,SEC,,) a registration statement
         or other filing for the issuance of freely trading shares to provide at
         least USD 2'700'000.-- in equity financing (the ,,Public Financing,,)
         for ASP (excluding costs and commissions). ASP agrees to use its best
         efforts to have such registration statement or other filing declared
         effective or approved by the SEC as soon as is practicable.
         Notwithstanding the foregoing, if ASP reasonably determines that a
         Public Financing is not practicable or in the interest of ASP and its
         shareholders, ASP may undertake a private placement of shares
         (the ,,Private Placement,,) to provide at least USD 2'700'000.-- in
         equity financing for ASP (excluding costs and commissions).The
         term ,,Financing,, means the Public Financing or the Private Placement,
         which ever occurs first. The price per share for the Financing shall be
         determined by ASP together with the parties placing or underwriting the
         same based upon a target price of USD 7.-- per share. It is understood
         and acknowledged that the total proceeds to be raised in the Financing

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Memorandum of Agreement
May 19, 1999
Page 4

         shall be in excess of USD 2'700'000 to allow for payment of the costs
         and commissions involved in the Financing and that proceeds of the
         Financing may be used to pay some or all of such costs and commissions.
         The Financing is contingent upon SEC approval if required, on
         satisfactory due diligence by the parties placing or underwriting the
         same, on agreement on terms among the parties and those placing or
         underwriting the same and on market conditions.

9.       At the time of the Closing, Valor and Founders agree to enter into a
         shareholders agreement (the ,,Shareholders Agreement,,) providing that
         each shall vote their shares in ASP so as to cause the election of no
         more than (a) five directors for ASP of which two shall be recommended
         by Valor, two shall be recommended by the Founders and the fifth shall
         be recommended jointly by Founders and Valor, (b) three directors of
         Felco of which two shall be recommended by the Founders and one shall
         be recommended by Valor (with the signature of one of the Founders
         directors and the Valor director being required to authorize action by
         Felco) and (c) for the election of Inventor as president of Felco;
         provided that the shareholders reasonably believe that each such
         director is qualified and the election of the same is in the best
         interest of the shareholders of ASP. The parties acknowledge that it is
         their intent to select a chief executive officer for ASP and Felco who
         shall have ultimate responsibility for the success of both entities.
         The Shareholders Agreement shall also contain such additional
         provisions concerning term and other matters as the parties shall
         agree. The new board of directors of ASP and Felco shall be elected
         within one month after Closing. VTZ agrees to use its best efforts to
         cause as many persons as possible listed on Exhibit 4 to enter into the
         Shareholders Agreement.

10.      At the time of the Closing or as soon as practicable thereafter, ASP
         shall change its corporate name to Felco International Corporation, or
         a similar name if the same is not available in the State of Florida,
         and shall establish a shareholder approved employee stock option plan
         and directors stock option plan authorizing the issuance of stock
         options or other stock based incentives, as determined by the newly
         elected directors of ASP and/or a compensation committee established by
         such directors, to the executives and other employees and the outside
         directors of ASP and its subsidiaries.

11.      Valor shall use its best efforts to arrange for a bank or other
         financial institution to loan to Founders at the time of the Closing
         the sum of CHF 1'500'000.-- against 1'000'000 shares of ASP on a
         non-recourse basis and under, and subject to, such other terms as may
         be agreed among the Founders and the lender.

12.      (a) At the time of the Closing, Inventor and Felco shall enter into a
         new license agreement (the ,,License Agreement" pursuant to which: (a)
         Inventor shall license world-wide rights in the Patent and any portions
         of the Technology developed by the Inventor (the ,,Inventor
         Technology") to Felco on an exclusive basis; (b) Inventor shall receive
         an initial royalty of CHF 350'000.-- upon completion of the Financing
         and (c) Felco shall pay to the Inventor royalties of 2.5 % of the gross
         revenues solely from the Business, payable on a quarterly basis until
         the expiration of the latest issued patent listed on Exhibit 1.

         (b) At the time of the Closing, each of the Founders (other than the
         Inventor) shall transfer all their right, title and interest in any of
         the Technology developed by each of them to Felco solely in
         consideration of that portion of the Founders Purchase Price received
         by each and the sum of USD 1.--paid to each.

13.      The primary mission of ASP and Felco after the Closing shall be the
         exploitation of the exclusive license of the Patents and the Technology
         so long as the directors of ASP deem the same to be in

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Memorandum of Agreement
May 19, 1999
Page 5

         the best interests of its shareholders and, subject thereto, the
         parties agree that ASP may explore and engage in other methods of
         producing light weight concrete or other business activities related to
         the construction industry. After the Closing, the Business and research
         and development activities related to the Patents and Technology shall
         be conducted by Felco based in Zug, Switzerland, so long as the
         Founders and others directly involved in such research and development
         are located there although other businesses in which ASP may be
         involved and ASP's and Felco's senior management (not directly involved
         in research and development related to the Patents and Technology) may
         be based in such jurisdictions as the directors determine to be in the
         best interest of ASP and its shareholders.

14.      Felco and Founders represent and warrant that (a) Felco is a
         corporation duly organized and in good standing under the laws of
         Switzerland; (b) Founders each own the shares in Felco shown by their
         names on Exhibit 3 to this Memorandum, free and clear of all claims
         except as shown on Exhibit 3; (c) Exhibit 4 is a listing according to
         the corporate records of Felco of the names of each person other than
         Founders holding shares in Felco and the number of shares held by each;
         (d) except as stated on Exhibits 3 and 4, there are no other shares in
         Felco outstanding or rights granted by Felco or Founders to acquire or
         convertible into the same; (e) Felco has the exclusive worldwide rights
         to the use of the Patents and the Technology without adverse claims by
         any other person; (f) each of the Founders and Felco has the authority
         to enter into this Memorandum and (g) execution and performance of this
         Memorandum will not cause a breach of any other agreement to which
         Founders or Felco is a party.

15.      VTZ represents and warrants that each of the persons listed on Exhibit
         4 is a customer of VTZ or has purchased shares in Felco directly
         through Felco.

16.      Valor and ASP each represent and warrant that (a) each is a corporation
         organized and in good standing under the laws of its jurisdiction or
         incorporation; (b) each has the authority to enter into this
         Memorandum; and (c) execution and performance of this Memorandum will
         not cause a breach of any other agreement to which either is a party.
         ASP represents and warrants that (a) at the time of the Closing, the
         three million common shares of ASP delivered to Founders as purchase
         price will represent no less than 50% of the issued and outstanding
         shares of ASP on a fully diluted basis; (b) ASP shall have no material
         liabilities (other than the Valor Loan) and at least USD 300'000.--
         incash assets at the time of the Closing; and (c) each of the directors
         or representatives of ASP signing this Agreement has the authority to
         enter into this Memorandum.

17.      The parties agree to use their best efforts to accomplish the following
         schedule:

           Signing of this Memorandum                   as soon as possible
           Funding of Felco Loan-1st Advance            20th May 1999
           Funding of Felco Loan-2nd Advance            20th June 1999
           Execution of  Definitive Agreements          20th June 1999
           Closing                                      20th June 1999
           Funding of Felco Loan-3rd Advance            20th July 1999
           Bridge Financing                             20th August 1999
           Financing                                    1st  November 1999

18.      Prior to election of new directors of Felco as contemplated in
         paragraph 9 above, except with the prior agreement of ASP and Valor,
         Felco and the Founders agree not to issue additional shares or other
         ownership interests in Felco of any type, or rights thereto. Felco
         agrees not to and Founders

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Memorandum of Agreement
May 19, 1999
Page 6

         agrees not to allow Felco to agree to sell or issue any interest in the
         Patents or the Technology or to incur or assume any debt or other
         financial obligation.

19.      As an inducement to ASP and Valor to enter into this Memorandum, to
         make the Felco Loan, to expend effort and expenses on the transactions
         contemplated herein and due diligence of Felco, between Memorandum Date
         and the election of new Felco directors as contemplated in paragraph 9,
         Felco will and Founders shall cause Felco to: (a) conduct business only
         in the normal and ordinary course and in substantially the same manner
         as conducted previously; (b) use best efforts to preserve intact its
         business organization and goodwill; (c) keep ASP and Valor advised of
         any business developments and consult with ASP before any decisions are
         taken with respect to any business operations; (d) not make any
         dividend or other unusual distributions of any kind to stockholders;
         (e) change management only as acceptable to Valor and ASP; (f) not make
         any material change to any material agreements or incur any material
         liabilities without ASP and Valor's prior written consent other than as
         required under paragraph 12 which shall be in form and substance
         acceptable to ASP and Founders; (g) not incur any debt or other
         obligations other than in the ordinary course of business without the
         prior written consent of Valor and ASP; and (h) grant no additional
         rights in Felco, the Patents or the Technology other than as required
         under paragraph 12 which shall be in form and substance acceptable to
         ASP. The parties acknowledge that Felco is proposing to enter into a
         material business transaction in connection with the,,Expo 2001"
         project which is within the normal and ordinary course of Felco's
         business but as to which ASP shall be consulted in regard to the terms
         and conditions thereof and the partners and other participants therein.

20.      The Founders, the Inventor, VTZ and Felco acknowledge that ASP is not
         engaged in any material business activities. As an inducement to the
         Founders, the Inventor, VTZ and Felco to enter into this Memorandum, to
         expend efforts and expenses on the transactions contemplated herein and
         due diligence of ASP (to the extent deemed necessary by the Founders,
         the Inventor, VTZ and Felco), ASP agrees that, from the Memorandum Date
         until the election of the new ASP directors as contemplated in
         paragraph 9, so long as ASP has not given a Notice under paragraph 3
         above or the obligations of ASP or Valor have not terminated under
         paragraph 26 or 27 below, ASP will not undertake, except with the prior
         consent of Felco, any material business activities other than the
         borrowing of funds under the Valor Loan and the acquisition of the
         shares of Felco as contemplated by paragraph 6 above.

21.      Until the Closing, Felco shall and Founders shall cause Felco
         (including any subsidiaries and affiliates) to: (a) grant ASP and Valor
         and its representatives, access to its and their premises and books and
         records and (b) furnish to ASP and Valor and their respective
         representatives such financial, operating and other information with
         respect to its business and properties as ASP and Valor shall from time
         to time reasonably request. In connection with its examination of
         Felco, ASP and Valor and their respective representatives may
         communicate with any person having business dealings with Felco. All of
         such access, investigation and communication by ASP or Valor will be
         conducted in a manner designed not to interfere unduly with the normal
         business of Felco.

22.      Until the Closing, ASP (including any subsidiaries and affiliates)
         shall: (a) grant the Founders and Felco, as well as their
         representatives, access to its books and records and (b) furnish to the
         Founders and Felco as well as their representatives such financial,
         operating and other information with respect to ASP's business and
         properties as the Founders and Felco shall from time to time reasonably
         request. In connection with the examination of ASP, the Founders and
         Felco as well as their representatives may communicate with any person
         having business dealings with ASP. All of

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Memorandum of Agreement
May 19, 1999
Page 7

         such access, investigation and communication by Founders or Felco will
         be conducted in a manner designed not to interfere unduly with the
         normal business of ASP.

23.      In consideration for the expenditures of time, effort and expense to be
         undertaken by ASP and Valor in connection with the transactions, the
         Bridge Financing and the Financing contemplated by this Memorandum and
         ASP and Valor's investigation of Felco, which is a condition precedent
         to any such financing, Felco, Founders and VTZ each agree that, from
         the Memorandum Date until the Closing, Felco, Founders and VTZ each
         will not solicit, entertain or enter into any agreement or
         understanding with, or furnish any nonpublic information to, any person
         or entity other than Valor or ASP or the representatives of either,
         with respect to the acquisition (by purchase, merger or otherwise) of
         any or all of the capital stock of or other interests in Felco, the
         Patents or the Technology or the sale of any material portion of the
         assets of Felco. Felco, Founders and VTZ will promptly notify ASP and
         Valor if any of them receives an unsolicited offer for such a
         transaction, or obtains information that such an offer is likely to be
         made, which notice will include the identity of the prospective offeror
         and the price and terms of the proposed offer.

24.      Each party shall be responsible for its own costs in connection with
         this Memorandum and the transactions contemplated herein. It is
         acknowledged that all professional costs in Switzerland incurred by
         Felco the Founders, VTZ and other shareholders of Felco and connected
         with the transactions set forth in this Memorandum, including but not
         limited to lawyers costs and costs for other professional advisors, are
         to be borne by Felco; provided, however, that Felco has given its prior
         approval to the engagement of such advisors and none of such costs
         shall be paid with the proceeds of the Felco Loan except as provided in
         paragraph 3 above.

25.      Each party agrees that it will not release or issue any reports,
         statements or releases pertaining to this Memorandum and the
         implementation hereof without the prior written consent of the other
         parties hereto except to professional advisors under a duty of
         confidentiality as necessary to consummate the transaction. Each party
         agrees that any information or material which is obtained from another
         party hereto will be used solely for the purposes of evaluating the
         other parties hereto in connection with the transactions contemplated
         herein and that such information will not be used or disclosed other
         than in furtherance of such purpose.

26.      This Memorandum shall terminate only upon the earliest to occur of (a)
         the execution of Definitive Agreements; (b) the execution and delivery
         by the parties of an agreement superseding this letter; (c) the
         notification to Felco by ASP or Valor of its election to terminate this
         Memorandum based on the results of their due diligence investigation
         into Felco; (d) the notification by any party to the other party hereto
         of the election to terminate this Memorandum for material departure by
         the other party from the provisions set forth in this Memorandum; (e)
         the giving of a Notification by ASP or Valor under paragraph 1 above;
         (f) the giving of a notification by Felco to ASP and Valor that any
         representations or warranties made by ASP or Valor in this Memorandum
         are false, misleading or incomplete in any material respect; or (g)
         failure of the Closing to occur within 45 days of the Memorandum Date.
         In case of a termination under clauses (e) or (g), the Felco Loan shall
         be due and payable as provided in paragraph 3 and no further advances
         thereunder shall be due.

27.      Except for paragraphs 1 through 3 and 14 through 29 hereof which are
         binding upon the parties, this Memorandum is intended to be, and shall
         be construed only as, a memorandum evidencing the intent of the parties
         to the date hereof. Except as otherwise provided in the preceding
         sentence, the respective rights and obligations of the parties remain
         to be defined in the Definitive Agreements, into which this letter and
         any prior discussions shall merge and which shall contain
         representations and warranties and other terms yet to be agreed upon
         and may reflect additional or different terms

<PAGE>   8

Memorandum of Agreement
May 19, 1999
Page 8

         consistent with the economic and other objectives set out above as may
         be necessary to meet the needs of the parties including without
         limitation tax and securities matters. Notwithstanding any other
         provisions in this Memorandum, (a) the obligations of ASP and Valor are
         subject to the satisfaction of each with their respective due diligence
         examinations of Felco, the Patents and the Technology including,
         without limitation, satisfaction as to Felco's business plans,
         management, competition, technologies and financial condition; (b) ASP
         and Valor shall be under no obligation to consummate the transactions
         contemplated herein (other than the Felco Loan except for advances not
         due) if, in the sole discretion of either, it determines not to proceed
         with any of such transactions whether as described herein or on other
         terms; and (c) in case of termination of this Memorandum pursuant to
         paragraph 26 (c) - (g), or non-consummation of the transactions
         contemplated herein pursuant to paragraph 27 (b), the Licence Agreement
         and all rights in the Technology licensed to Felco shall terminate. The
         parties agree to work in good faith to timely enter into and consummate
         the Definitive Agreements.

28.      This Memorandum as well as any dispute directly or indirectly affecting
         this Memorandum shall be subject to and interpreted in accordance with
         the laws of Switzerland. Notices shall be deemed given when delivered
         to a party at the address or fax number for such party listed under
         their signatures below.

29.      All disputes arising out of or in connection with the present
         Memorandum of Agreement, including disputes on the conclusion, binding
         effect, amendment and termination, shall be resolved, to the exclusion
         of the ordinary courts by a three-person Arbitral Tribunal in
         accordance with the International Arbitration Rules of the Zurich
         Chamber of Commerce. The Arbitration shall take place in Zurich; the
         language of the proceeding shall be English.

<PAGE>   9

Memorandum of Agreement
May 19, 1999
Page 9

         This Memorandum will be executed by facsimilie signature which shall be
         deemed an original and, when taken together, shall be deemed one and
         the same agreement.

FELCO HOLDING ZUG AG:

/s/ H.B. Fehlmann                       /s/ Beat Fehlmann
-----------------------                 ---------------------------

(H.B. Fehlmann)                         (Beat Fehlmann)
Title: President of the Board           Title: Member of the Board

Felco Holding AG
Chamerstrasse 18
6300 Zug
Fax 0041 41 710 46 45

Hans-Beat Fehlmann:                     Beat C. Fehlmann:

/s/ Hans-Beat Fehlmann                  /s/ Beat C. Fehlmann
---------------------------             ------------------------

(Hans-Beat Fehlmann)                    (Beat C. Fehlmann)

Zugerstrasse 76                         Eichholzweg 1c
6318 Walchwil                           6312 Steinhausen

Mathias Fehlmann:

/s/ Mathias Fehlmann
------------------------

<PAGE>   10

Memorandum of Agreement
May 19, 1999
Page 10

(Mathias Fehlmann)
(signed by Beat Fehlmann, proxy of May 17th, 1999)

Giebelweg 4
6343 Buonas
<PAGE>   11

Memorandum of Agreement
May 19, 1999
Page 11

VTZ Versicherungs Treuhand AG:

/s/ Martin Brenner                              /s/ Silvia Staub
-----------------------                         --------------------
(Martin Brenner)                                (Silvia Staub)
CEO, Member of the Board

Bahnhofplatz 9
Fax 0041 1 226 45 46

<PAGE>   12

Memorandum of Agreement
May 19, 1999
Page 12

ValorInvest Ltd.

/s/ Altaf Nazerali
-----------------------                         --------------------------
(Altaf Nazerali)                                (                    )
Title:                                          Title:

29 Quai des Bergues
1201 Geneva
Fax 0041 22 732 56 95

<PAGE>   13

Memorandum of Agreement
May 19, 1999
Page 13

ASP Ventures Corp.

/s/ Norman Wareham                              /s/ Eric Kohn
-----------------------                         -----------------
( Norman Wareham)                               (Eric Kohn)
Title:

Fax 001 604 68 32 370
Tel. 001 604 60 21 717

<PAGE>   14

Memorandum of Agreement
May 19, 1999
Page 14

EXHIBIT 1 TO MEMORANDUM OF AGREEMENT

PATENTS OF FELCO HOLDING ZUG AG

                                                  Application or
Description of Patents          Owner             Patent Number      Country
----------------------          -----             -------------      -------

Grant Patents:

Building Material having low    H.B. Fehlmann     5,868,830          USA
degress of shrinkage

Building Material with          H.B. Fehlmann     5,641,815          USA
increased strength

Pending Patents:

European Patent:                H.B. Fehlmann     95936920.8         EU
Baumaterial mit geringerem
Schwinden

Switzerland:
Baumaterial mit geringerem      H.B. Fehlmann     3871/94-6          CH
Schwinden

PCT-Anmeldung:
Baumaterial mit geringerem      H.B. Fehlmann     CH95/00277         CH
Schwinden

Canada:
Bauwerkstoff mit erhohter       H.B. Fehlmann     2.132,645          CND
Festigkeit

Japan:
Bauwerkstoff mit erhohter       H.B. Fehlmann     245 485/94         JP
Festigkeit

<PAGE>   15

Memorandum of Agreement
May 19, 1999
Page 15

EXHIBIT 2 TO MEMORANDUM OF AGREEMENT

PROMISSORY NOTE

PROMISSORY NOTE

CHF 400'000.--                                      May______, 1999

FOR VALUE RECEIVED, FELCO HOLDING ZUG AG, a Swiss corporation (,,Borrower,,),
does hereby promise to pay to the order of ASP VENTURES CORP., a Florida
corporation (,,Lender,,), the principal sum of FOUR HUNDRED THOUSAND AND 00/100
SWISS FRANCS (CHF 400'000.--), or so much thereof as shall have been advanced
hereunder by Lender to Borrower together with interest thereon as provided
below. (All capitalized terms in this Note, not defined herein, shall have the
meanings given to such terms in that certain Memorandum of Agreement of even
date herewith among Lender, Borrower and others (the ,,Memorandum")).

1.       Interest. Interest will accrue on the outstanding principal amount of
         this Note at the rate of eight percent (8%) per annum from the date of
         each advance, and until all amounts outstanding under this Note have
         been paid in full.

2.       Payments. Interest, principal and all other sums payable hereunder
         (collectively, the ,,Obligations,,) shall be payable, without any
         offset, reduction, counterclaim or recoupment whatsoever, in lawful
         money of the country of Switzerland which shall be legal tender in
         payment of all debts and dues, public and private, at the time of
         payment, and shall be due and payable as follows unless extended by the
         Lender:

         ( a ) If (i) the Closing is not completed within forty-five (45) days
         of the Memorandum Date, or (b) if any of the information or documents
         provided by Borrower to Lender, directly or through advisors, listed on
         Exhibit 6 to the Memorandum or any representations or warranties made
         by Borrower in the Memorandum shall be false, misleading or incomplete
         in any material respect or (c) there shall occur a material adverse
         change in the business of Borrower, upon notice given by Lender in its
         sole discretion (the ,,Notice"), the entire the principal balance of
         this Note WITHOUT INTEREST shall be due and payable within 60 days or
         receipt of the Notice by Borrower and interest as provided above shall
         accrue from such due date until the same is paid;

         ( b ) The Obligations shall be repaid in full upon the consummation of
         the Financing; or

         ( c ) If not sooner paid (whether by acceleration or otherwise), the
         entire balance of the Obligations shall be due and payable on January
         31st, 2000.

3.       Advances. Upon receiving a properly executed original of this Note and
         upon the satisfaction of the conditions precedent to any advance as set
         forth herein, Lender shall make available the proceeds of the loan.
         Advances are limited in the aggregate to the stated principal amount of
         this Note; this is not a revolving line of credit.

4.       Application of Payments. All payments shall be applied first on account
         of late charges, if any, then to Lender's costs of collection
         (including, without limitation, reasonable attorneys' fees and

<PAGE>   16

Memorandum of Agreement
May 19, 1999
Page 16

         expenses), if any, then, to accrued and unpaid interest, and the
         balance to the reduction of principal. For the purposes of computing
         interest on the debt evidenced hereby, if any, interest shall be
         calculated on the basis of a year consisting of three hundred sixty
         (360) days, and shall be charged on the basis of the actual number of
         calendar days that the principal amount advanced remains unpaid to the
         Lender.

5.       Default; Remedies. If default be made in the performance of any term,
         condition or covenant contained in this Note or in connection with any
         other obligation of Borrower to Lender, and such default shall not have
         been cured under any cure provisions applicable to such default, then
         and in any such event, the Obligations, in their entirety, shall at
         once become due and payable at the option of the Lender without further
         notice. Failure of the Lender to exercise the option to accelerate
         payment in the event of any default shall not constitute a waiver of
         the right to exercise the same in the event of any subsequent default.

6.       Prepayment. The privilege is reserved to Borrower to prepay the entire
         indebtedness evidenced hereby with interest thereon, at any time of
         from time to time, without prepayment premium or penalty, provided
         however, that Borrower shall provide prior written notice to Lender of
         the intent to prepay ten (10) business days in advance of such
         prepayment. Partial prepayments shall not be accepted except in
         Lender's sole discretion.

7.       Attorney's Fees. In the event counsel is employed by the Lender to
         enforce the provisions of this Note, Borrower shall pay upon demand
         reasonable attorneys' fees so incurred by Lender, and all other costs
         and expenses connected with such enforcement.

8.       Waivers. The Borrower hereby waives presentment, protest and demand,
         notice of protest and notice of dishonor of this Note.

9.       Notices. All notices, requests, demands and other communications
         required permitted hereunder must be in writing and shall be effective
         (a) five (5) days after being mailed by first class certified or
         registered mail, return receipt requested, with proper postage prepaid,
         or (b) two (2) business days after being delivered to an established
         over-night delivery service, with costs for ,,next day,, delivery
         prepaid, addressed in either case to the following addresses (or at
         such other addresses as will be given in writing by the parties to one
         another):

         To the Borrower:                Felco Holding Zug AG
                                         Attention: H.B. Fehlmann
                                         Chamerstrasse 18
                                         CH-6301 Zug
                                         Switzerland
                                         Tel.: 0041 -41 - 710 - 22 - 45
                                         Fax: 0041 -41 - 710 - 46 - 45

         To the Lender:                  ASP Ventures Corp.
                                         Attention: Mr. G.W. Norman Wareham
                                         1177 West Hastings Street
                                         Suite 1818
                                         Vancouver, BC Canada V6E 2K3

<PAGE>   17

Memorandum of Agreement
May 19, 1999
Page 17

                                         Tel.: 001 604 60 21 717
                                         Fax: 001 604 68 32 370

                                         with copy to:
                                         Michael H. Chanin, Esq.
                                         Powell, Goldstein, Frazer and
                                         Murphy LLP
                                         1001 Pennsylvania Ave. NW.
                                         Suite 600
                                         Washington DC 20004
                                         Tel.:  (202) 624 - 7235
                                         Fax:  (202) 624 - 7222

10.      Severability. In the event any provision (or any part of any provision)
         contained in this Note shall for any reason be finally held by a court
         of competent jurisdiction or other body to be invalid, illegal or
         unenforceable in any respect, such invalidity, illegality or
         unenforceability shall not affect any other provision (or remaining
         part of the affected provision) of this Note; but this Note shall be
         construed as if such invalid, illegal or unenforceable provision (or
         part thereof) had never been contained herein, but only to the extent
         it is invalid, illegal or unenforceable.

11.      Successors and Assigns. This Note and/or rights hereunder are
         assignable by Lender and shall enure to the benefit of Lender and its
         assigns.

12.      Time is of the Essence. Time is of the essence as to each and every
         provision of this Note.

13.      Governing Law and Choice of Forum. This Note will be governed by and
         construed in accordance with the laws of Switzerland. All disputes
         arising out of or in connection with the present Note, including
         disputes on the conclusion, binding effect, amendment and termination,
         shall be resolved, to the exclusion of the ordinary courts by a
         three-person Arbitral Tribunal in accordance with the International
         Arbitration Rules of the Zurich Chamber of Commerce. The Arbitration
         shall take place in Zurich; the language of the proceeding shall be
         English. Collection of this Note may, however, be undertaken and
         enforced in the ordinary courts.

WITNESS the execution hereof by the Borrower on the date first hereinabove
         written, with the intent that this shall be an instrument under seal.

                                         BORROWER:

WITNESS: FELCO HOLDING ZUG AG

                                         By:                       (SEAL)
---------------------                        ---------------------
Name: H.B Fehlmann                       Name: Beat C. Fehlmann

<PAGE>   18

Memorandum of Agreement
May 19, 1999
Page 18

Title: President of the Board            Title: Member of the Board

                                         Bank Wiring Instructions
                                         UBS Zug, Baarestrasse 14a, CH-6301 Zug
                                         att. Markus Gmur
                                         Bank Swift: UBSWCHZZ80A
                                         Kto Name: Felco Holding Zug AG
                                         Kto Number: Q9-819,796.0 (CHF)
                                         Kto Number: Q9-819,796.1 (US$)

                                         ---------------------------

<PAGE>   19

Memorandum of Agreement
May 19, 1999
Page 19

                      EXHIBIT 3 TO MEMORANDUM OF AGREEMENT

OWNERSHIP OF FOUNDERS

<TABLE>
<CAPTION>

Name                       Number of Shares   Encumbrance
----                       ----------------   -----------

<S>                       <C>                <C>
Hans-Beat Fehlmann         140668             4930

Beat Fehlmann              9'500

Mathias Fehlmann           10'000             10'000

Total                      160168             14'930

% of total shares          69.64%             6.50%

</TABLE>

NOTE THAT DELIVERY OF SHARES HELD BY PLEDGE HOLDER IS SUBJECT TO RESPECTIVE
AGREEMENTS BETWEEN THE SHAREHOLDER AND THE HOLDER OF THE PLEDGE.

<PAGE>   20

Memorandum of Agreement
May 19, 1999
Page 20

EXHIBIT 4 TO MEMORANDUM OF AGREEMENT
PAGE 1 OF 6
OWNERSHIP INTEREST PURSUANT TO RECORDS OF FELCO HOLDING ZUG AG

REGISTERED SHARES

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
        FELCO HOLDING ZUG AG
----------------------------------------------------------------------------------------------------------------
        LISTE DER INVESTOREN IN NAMENAKTIEN ( ohne Grunderaktionare )
----------------------------------------------------------------------------------------------------------------
            PER 10.05.99
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
NAME                                                   ORT                        ANZAHL             ZERT.
----------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                              <C>                <C>
----------------------------------------------------------------------------------------------------------------
Aemisegger Alena                                       Adlikon                              40               24
----------------------------------------------------------------------------------------------------------------
Aemisegger Andreas                                     Adlikon                              40               11
----------------------------------------------------------------------------------------------------------------
Affaires Financieres S.A.                              Zurich                             7370              262
----------------------------------------------------------------------------------------------------------------
Albertin Bernadette                                    Massagno                             48              100
----------------------------------------------------------------------------------------------------------------
Alder-Casagrande Ronald                                Affoltern a.A.                       70              192
----------------------------------------------------------------------------------------------------------------
Amez-Droz Manfred                                      Winterthur                          115               92
----------------------------------------------------------------------------------------------------------------
Architektur-Buro O. Baldelli                           Erstfeld                             10              138
----------------------------------------------------------------------------------------------------------------
Armbruster Ursula                                      Zurich                              250               12
----------------------------------------------------------------------------------------------------------------
AROC Bau AG                                            Zug                                  10              184
----------------------------------------------------------------------------------------------------------------
ASA                                                    Basel                              1700                9
----------------------------------------------------------------------------------------------------------------
Auf der Mauer Genevieve                                Gland                                20               52
----------------------------------------------------------------------------------------------------------------
Auf der Maur Claudia                                   Brunnen                              50              103
----------------------------------------------------------------------------------------------------------------
Auf der Maur Hedy                                      Brunnen                              40               90
----------------------------------------------------------------------------------------------------------------
Bachmann Bruno                                         Zug                                  50              246
----------------------------------------------------------------------------------------------------------------
Baldelli-Blaser Orlando                                Erstfeld                             10              137
----------------------------------------------------------------------------------------------------------------
Ben-Ari Noomi                                          Munchen                             152               43
----------------------------------------------------------------------------------------------------------------
Bernardys AG                                           Zurich                               20              177
----------------------------------------------------------------------------------------------------------------
Bhend Barbara                                          Baar                                 10               14
----------------------------------------------------------------------------------------------------------------
Brack Markus                                           Zug                                  50               58
----------------------------------------------------------------------------------------------------------------
Brandenberger Michael                                  Kusnacht                             20              144
----------------------------------------------------------------------------------------------------------------
Brenner Martin                                         Uerikon                            1090              125
----------------------------------------------------------------------------------------------------------------
Cerfeda Giovanni                                       Winterthur                          250               13
----------------------------------------------------------------------------------------------------------------
Ciments Vigier SA                                      Pery                               5000              271
----------------------------------------------------------------------------------------------------------------
Czuk Charlotte                                         Hettlingen                           50               33
----------------------------------------------------------------------------------------------------------------
Delta Energie AG                                       Zurich                             1270              256
----------------------------------------------------------------------------------------------------------------
Fent Giuseppe                                          Winterthur                          250               16
----------------------------------------------------------------------------------------------------------------
Fink-Arnet Markus P.                                   Altdorf                              20              165
----------------------------------------------------------------------------------------------------------------
Frei Bruno und Barbara                                 Etzelkofen                           80              129
----------------------------------------------------------------------------------------------------------------
Frey Jurg & Rosemarie                                  Rolling Hills, CA 90274             120               45
----------------------------------------------------------------------------------------------------------------
Furger Sahli Marlena                                   Liebefeld                           100              130
----------------------------------------------------------------------------------------------------------------
Gasser Dorette                                         Zurich                              300              242
----------------------------------------------------------------------------------------------------------------
Gemeinder Josef                                        Coburg                              100               15
----------------------------------------------------------------------------------------------------------------
Greiner Daniel                                         Adetswil                             80              191
----------------------------------------------------------------------------------------------------------------
Grobmay Alex                                           Grafing                              20               35
----------------------------------------------------------------------------------------------------------------
Gunthardt Heike                                        Kusnacht                             10                8
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   21

Memorandum of Agreement
May 19, 1999
Page 21

<TABLE>
----------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                              <C>                <C>
Hansen Mogens                                          Affoltern a.A.                       50              133
----------------------------------------------------------------------------------------------------------------
Hausermann Peter                                       Vordemwald                            4               86
----------------------------------------------------------------------------------------------------------------
EXHIBIT 4 (CONTINUED)  PAGE 2 OF 6
REGISTERED SHARES
----------------------------------------------------------------------------------------------------------------
Hediger Walter                                         Zurich                             1000               42
----------------------------------------------------------------------------------------------------------------
Hess Rene                                              Bern                                 60              139
----------------------------------------------------------------------------------------------------------------
Hofer Urs                                              Balsthal                             40               99
----------------------------------------------------------------------------------------------------------------
Holstein Christa                                       Kusnacht                             20              153
----------------------------------------------------------------------------------------------------------------
Hug Thomas                                             Bever                               300               63
----------------------------------------------------------------------------------------------------------------
Imholz Heinrich                                        Wettingen                            77               91
----------------------------------------------------------------------------------------------------------------
Isler Andreas                                          Gutighausen                          20               65
----------------------------------------------------------------------------------------------------------------
Jakob Peter                                            Zurich                              220               18
----------------------------------------------------------------------------------------------------------------
Kamber Heidi                                           Stans                                40              176
----------------------------------------------------------------------------------------------------------------
Kammer Paul                                            Trimbach                             20               69
----------------------------------------------------------------------------------------------------------------
Kayser Marion                                          Widen                                75              119
----------------------------------------------------------------------------------------------------------------
Kindhauser Eugen                                       Kleinandelfingen                     50              105
----------------------------------------------------------------------------------------------------------------
Knaus Anna                                             Meilen                               20               97
----------------------------------------------------------------------------------------------------------------
Knaus Johannes                                         Meilen                               55              110
----------------------------------------------------------------------------------------------------------------
Knaus Jurg                                             Meilen                              155               59
----------------------------------------------------------------------------------------------------------------
Kohler Freya                                           Munchen                             191               20
----------------------------------------------------------------------------------------------------------------
Kotscher Dagmar                                        Heiden                               20              198
----------------------------------------------------------------------------------------------------------------
Kraus Peter                                            Freienbach                          100              219
----------------------------------------------------------------------------------------------------------------
K-S Anlage AG                                          Diepoldsau                          200              115
----------------------------------------------------------------------------------------------------------------
Kuchler Rosmarie                                       Zollikon                            100               96
----------------------------------------------------------------------------------------------------------------
Kyriacou Andreas                                       Volketswil                           60              141
----------------------------------------------------------------------------------------------------------------
Laager Marlies                                         Horgen                              150              118
----------------------------------------------------------------------------------------------------------------
Lacher Ernst                                           Samstagern                          100              136
----------------------------------------------------------------------------------------------------------------
Lanz Ursula                                            Zurich                              200               80
----------------------------------------------------------------------------------------------------------------
Lehni-Fehlmann Isabel                                  Zug                                 100               62
----------------------------------------------------------------------------------------------------------------
Lichtenhahn Susanna                                    Schaffhausen                         60              216
----------------------------------------------------------------------------------------------------------------
Luthi Rony                                             Windisch                             62              117
----------------------------------------------------------------------------------------------------------------
Luthi Rony                                             Windisch                             30               22
----------------------------------------------------------------------------------------------------------------
Manz Thomas                                            Zumikon                             200               81
----------------------------------------------------------------------------------------------------------------
Marthaler Christoph                                    VR Maarn                             50               89
----------------------------------------------------------------------------------------------------------------
Marthaler Daniel                                       Kusnacht                             40              148
----------------------------------------------------------------------------------------------------------------
Marthaler Daniel                                       Kusnacht                            112               85
----------------------------------------------------------------------------------------------------------------
Marthaler Daniel                                       Kusnacht                              8              150
----------------------------------------------------------------------------------------------------------------
Marty Katja                                            Ernetschwil                          40              190
----------------------------------------------------------------------------------------------------------------
Masina Attilio                                         Illighausen                          76              154
----------------------------------------------------------------------------------------------------------------
Maurer Martin & Susanne                                Bubikon                             150              166
----------------------------------------------------------------------------------------------------------------
Meili Walter                                           Zurich                               40              252
----------------------------------------------------------------------------------------------------------------
Merk Robert                                            Zurich                                5              102
----------------------------------------------------------------------------------------------------------------
Meyer Lorenz                                           Zurich                               20              121
----------------------------------------------------------------------------------------------------------------
Meyer-Waldherr Kathrin                                 Meilen                              150              149
----------------------------------------------------------------------------------------------------------------
Niederberger Margret                                   Steinhausen                          20               47
----------------------------------------------------------------------------------------------------------------
Niederost Markus                                       Elgg                                 40              155
----------------------------------------------------------------------------------------------------------------
Nievergelt Georges                                     Thalwil                             168              194
----------------------------------------------------------------------------------------------------------------
Oeko Casa Investment-+ Beteiligungsgesellschaft AG     Zurich                              300              199
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   22

Memorandum of Agreement
May 19, 1999
Page 22

<TABLE>
----------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                              <C>                <C>
Pensionskasse SBGRL                                    Ruschlikon                          100              106
----------------------------------------------------------------------------------------------------------------
Perch-Nielsen Jorgen                                   Richterswil                         100              120
----------------------------------------------------------------------------------------------------------------
Pfeiffer Dagmar                                        Berlin                               40              158
----------------------------------------------------------------------------------------------------------------
Pfenninger Paul                                        Meilen                               77               48
----------------------------------------------------------------------------------------------------------------
Pfosi Luzi                                             Wallisellen                         100              201
----------------------------------------------------------------------------------------------------------------
EXHIBIT 4 (CONTINUED)  PAGE 3 OF 6
REGISTERED SHARES
----------------------------------------------------------------------------------------------------------------
Picard Katharina                                       Bern                                120              108
----------------------------------------------------------------------------------------------------------------
Planzer Walter                                         Ammerswil                            75              122
----------------------------------------------------------------------------------------------------------------
Rahn & Bodmer                                          Zurich                             5500              266
----------------------------------------------------------------------------------------------------------------
Rappo-Brumann Cornelia                                 St. Antoni                           30              164
----------------------------------------------------------------------------------------------------------------
Rechsteiner Rita                                       St. Pelagiberg                       20               25
----------------------------------------------------------------------------------------------------------------
Rickli Heinz                                           Bern                                100              132
----------------------------------------------------------------------------------------------------------------
Rimann Sepp                                            Niederrohrdorf                       20               68
----------------------------------------------------------------------------------------------------------------
Rudolf Dudler AG                                       Staad                               100               29
----------------------------------------------------------------------------------------------------------------
Ruetschi Thomas                                        Bern                                150              236
----------------------------------------------------------------------------------------------------------------
Schaffner Sami                                         Oberrohrdorf                         30              180
----------------------------------------------------------------------------------------------------------------
Schlapfer Marianne                                     Zurich                               10              179
----------------------------------------------------------------------------------------------------------------
Schmid Herbert                                         Bern                                 40              156
----------------------------------------------------------------------------------------------------------------
Schmidli Rolf                                          Aarau                                50               93
----------------------------------------------------------------------------------------------------------------
Schmocker Laura                                        Ennetmoos                            23              240
----------------------------------------------------------------------------------------------------------------
Schneider Heinz                                        Trimbach                             40               66
----------------------------------------------------------------------------------------------------------------
Schneider Paul                                         Bremgarten                          200               49
----------------------------------------------------------------------------------------------------------------
Seeger-Bischoff Nadine + Stefan                        Basel                               230              183
----------------------------------------------------------------------------------------------------------------
Shey Randolph & Deanne                                 Palos Verdes                        326               51
----------------------------------------------------------------------------------------------------------------
Sicam Automation & Umwelttechnic AG                    Evilard                              25               10
----------------------------------------------------------------------------------------------------------------
Signer Bruno                                           Zollikerberg                         40              157
----------------------------------------------------------------------------------------------------------------
Sigrist Christian                                      Wallisellen                          50              172
----------------------------------------------------------------------------------------------------------------
Sigrist Christian                                      Wallisellen                        1000              151
----------------------------------------------------------------------------------------------------------------
Sigrist Christian                                      Wallisellen                          50              170
----------------------------------------------------------------------------------------------------------------
Sigrist Christian                                      Wallisellen                          50              173
----------------------------------------------------------------------------------------------------------------
Sigrist Christian                                      Wallisellen                          50              171
----------------------------------------------------------------------------------------------------------------
Spalinger Beatrice                                     Wohlen                               60              193
----------------------------------------------------------------------------------------------------------------
Stadelmann Ruth                                        Zurich                               20               74
----------------------------------------------------------------------------------------------------------------
Stahli Rene                                            Winterthur                          350              220
----------------------------------------------------------------------------------------------------------------
Stammbach Marc                                         Wolfhausen                           25              186
----------------------------------------------------------------------------------------------------------------
Staub Silvia                                           Winterthur-Oberseen                  25               53
----------------------------------------------------------------------------------------------------------------
Steiner Marcel                                         Schwellbrunn                         38              241
----------------------------------------------------------------------------------------------------------------
Stern Elisabeth                                        Rieden                               40               75
----------------------------------------------------------------------------------------------------------------
Stuckey Barbara                                        Zurich                               30              248
----------------------------------------------------------------------------------------------------------------
Stucki Walter                                          Hunibach                            200              152
----------------------------------------------------------------------------------------------------------------
Studer Sabine                                          Wetzikon                             77               60
----------------------------------------------------------------------------------------------------------------
Surbeck Werner                                         Oberrieden                          200              134
----------------------------------------------------------------------------------------------------------------
Surbeck Werner                                         Oberrieden                          100              185
----------------------------------------------------------------------------------------------------------------
SVHA                                                   Wettingen                           100              245
----------------------------------------------------------------------------------------------------------------
Terra Healthy Living Ltd.                              Tortola                            2334              272
----------------------------------------------------------------------------------------------------------------
Thumena Mucca                                          Adliswil                             40              253
----------------------------------------------------------------------------------------------------------------
Urner Kantonalbank                                     Altdorf                            6250
----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   23

Memorandum of Agreement
May 19, 1999
Page 23

<TABLE>
----------------------------------------------------------------------------------------------------------------
<S>                                                    <C>                              <C>                <C>
Urner Kantonalbank                                     Altdorf                            6250
----------------------------------------------------------------------------------------------------------------
Urner Kantonalbank                                     Altdorf                            6250
----------------------------------------------------------------------------------------------------------------
Van den Berg Waltraud                                  Neftenbach                           50               26
----------------------------------------------------------------------------------------------------------------
Vanoncini Philip                                       Birchwil-Nurensdorf                 100              168
----------------------------------------------------------------------------------------------------------------
Vetter Daniel                                          Steffisburg                          70              244
----------------------------------------------------------------------------------------------------------------
von Rotz Stephan                                       Zurich                               20              243
----------------------------------------------------------------------------------------------------------------
Vonlanthen Roger                                       Bern                                 23              128
----------------------------------------------------------------------------------------------------------------
VTZ Kontokorrent                                       Zurich                               46              264
----------------------------------------------------------------------------------------------------------------
EXHIBIT 4 (CONTINUED)  PAGE 4 OF 6
REGISTERED SHARES
----------------------------------------------------------------------------------------------------------------
Wachs Barton                                           Rolling Hills CA 90274               62               40
----------------------------------------------------------------------------------------------------------------
Wachs-Frey Francesca                                   Rolling Hills CA 90274               62               41
----------------------------------------------------------------------------------------------------------------
Walder Ernst                                           Freienwil                            80              111
----------------------------------------------------------------------------------------------------------------
Walti-Roth Marlis                                      Seon                                 40              101
----------------------------------------------------------------------------------------------------------------
Walz Felix                                             Zurich                              200              274
----------------------------------------------------------------------------------------------------------------
Weber-Erb Elisabeth                                    Zollikon                             20              167
----------------------------------------------------------------------------------------------------------------
Weikart Adalbert                                       Glattbrugg                          200              116
----------------------------------------------------------------------------------------------------------------
Widmer Esther                                          Wettingen                            32               61
----------------------------------------------------------------------------------------------------------------
Wieser Alexandra                                       Zurich                               28                6
----------------------------------------------------------------------------------------------------------------
Wieser Alexandra                                       Zurich                                8              109
----------------------------------------------------------------------------------------------------------------
With Donat                                             Langenthal                           40              140
----------------------------------------------------------------------------------------------------------------
Wolfer Marianne                                        Zurich                              400              127
----------------------------------------------------------------------------------------------------------------
Ziegler Serge                                          Zurich                               20               70
----------------------------------------------------------------------------------------------------------------
Ziegler-Zurfluh Emil                                   Fluelen                             200                5
----------------------------------------------------------------------------------------------------------------
Zinniker Jannis                                        Baden                                78               98
----------------------------------------------------------------------------------------------------------------
Zurfluh Louis                                          Seedorf                             405              263
----------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------
TOTAL INVESTOREN IN NAMENAKTIEN ( ohne Grunderaktionare )                                57132
----------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   24
Memorandum of Agreement
May 19, 1999
Page 24

EXHIBIT 4 (CONTINUED)  PAGE 5 OF 6
BEARER SHARES

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
        FELCO HOLDING ZUG AG
--------------------------------------------------------------------------------------------------------------------------------
           VERSANDREGISTER DER INHABERAKTIEN
--------------------------------------------------------------------------------------------------------------------------------
         PER 23. APRIL 1999
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
NAME                                               ORT                       ANZAHL       ZERT.     VERSAND        BESTATIGT
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                <C>                            <C>         <C>       <C>           <C>
--------------------------------------------------------------------------------------------------------------------------------
Amstutz Thomas                                     8135 Langnau am Albis            300         5         1/24/95        2/3/95
--------------------------------------------------------------------------------------------------------------------------------
Banca dello Stato del Cantone Ticino               6830 Chiasso                     800        23         1/24/95       1/30/95
--------------------------------------------------------------------------------------------------------------------------------
Banca dello Stato del Cantone Ticino               6830 Chiasso                    1500        24         1/24/95       1/30/95
--------------------------------------------------------------------------------------------------------------------------------
Bank J. Vontobel & Co., AG                         8022 Zurch                       575        51          7/4/95       7/20/95
--------------------------------------------------------------------------------------------------------------------------------
Barra Cristina                                     8942 Oberrieden                   20         6         1/24/95       1/31/95
--------------------------------------------------------------------------------------------------------------------------------
Berger Thomas                                      8050 Zurich                       55        67        11/16/95      11/28/95
--------------------------------------------------------------------------------------------------------------------------------
Bernhard Ziegler & Sohne AG                        6454 Fluelen                     100         2         1/19/95       1/31/95
--------------------------------------------------------------------------------------------------------------------------------
Berthier Yves                                      1226 Thonex                      200         7         1/24/95       2/15/95
--------------------------------------------------------------------------------------------------------------------------------
Brack Markus                                       6301 Zug                          50         8         1/24/95        2/2/95
--------------------------------------------------------------------------------------------------------------------------------
Braun Eugen                                        D-8713 Uerikon                   200        70        11/30/95      12/12/95
--------------------------------------------------------------------------------------------------------------------------------
Brenner Martin                                     8713 Uerikon                     300        74         1/17/96       1/17/96
--------------------------------------------------------------------------------------------------------------------------------
Buzzi Bruno                                        1247 Anieres                     100        12         1/24/95
--------------------------------------------------------------------------------------------------------------------------------
Cerfeda Giovanni                                   8400 Winterthur                  250        14         1/24/95        2/2/95
--------------------------------------------------------------------------------------------------------------------------------
CRS Reinigungsdienst                               8065 Zurich                      400        83         6/11/96       6/18/96
--------------------------------------------------------------------------------------------------------------------------------
Fas Jurg                                           3038 Kirchlindach                 80        88         8/22/96      11/13/96
--------------------------------------------------------------------------------------------------------------------------------
Felco Holding Zug AG                               6301 Zug                          14       111        12/16/98      12/17/98
--------------------------------------------------------------------------------------------------------------------------------
Fent Giuseppe                                      8400 Winterthur                  250        21         1/24/95       1/31/95
--------------------------------------------------------------------------------------------------------------------------------
Frei Gabriela                                      6874 Castel San Pietro           100       104         5/15/97       6/30/97
--------------------------------------------------------------------------------------------------------------------------------
Fritz Rainer                                       6922 Morcote                      50        22         1/24/95        2/6/95
--------------------------------------------------------------------------------------------------------------------------------
Fust Daniel                                        1275 Cheserex                    100        59          8/7/95       8/21/95
--------------------------------------------------------------------------------------------------------------------------------
Gingins Francois                                   1400 Yverdon                      80        56          7/4/95       7/30/95
--------------------------------------------------------------------------------------------------------------------------------
Hani Willi                                         2545 Selzach                      40        55          7/4/95       7/20/95
--------------------------------------------------------------------------------------------------------------------------------
Hirt Daniel                                        8180 Bulach                       25        85         6/11/96       6/14/96
--------------------------------------------------------------------------------------------------------------------------------
Hofmaier Martin                                    8492 Wila                        100        86         6/11/96       6/18/96
--------------------------------------------------------------------------------------------------------------------------------
Hottinger Ueli                                     8048 Zurich                       40        90         8/22/96      10/23/96
--------------------------------------------------------------------------------------------------------------------------------
Huber Rene                                         1209 Geneve                      500        26         1/24/95        2/1/95
--------------------------------------------------------------------------------------------------------------------------------
Kammermann Markus                                  1261 Chavannes-de-Bogis           20        27         1/24/95        2/6/94
--------------------------------------------------------------------------------------------------------------------------------
Klooz Daniel                                       8400 Winterthur                   40        97         2/27/97        3/1/97
--------------------------------------------------------------------------------------------------------------------------------
Kunzel Siegmund                                    8600 Dubendorf                   100        30         1/24/95        2/3/95
--------------------------------------------------------------------------------------------------------------------------------
Lanz Ursula                                        8032 Zurich                       50        72        12/15/95       1/15/96
--------------------------------------------------------------------------------------------------------------------------------
Marchand Claudine                                  1012 Lausanne                    150        75         1/18/96       1/23/96
--------------------------------------------------------------------------------------------------------------------------------
Marthaler Daniel                                   8700 Kusnacht/ZH                  93        32         1/24/95       1/30/95
--------------------------------------------------------------------------------------------------------------------------------
Martin Veronica                                    1213 Petit-Lancy                 100        64         10/2/95       10/9/95
--------------------------------------------------------------------------------------------------------------------------------
Morerod Bruno                                      1865 Les Diablerets               40        34         1/24/95        2/2/95
--------------------------------------------------------------------------------------------------------------------------------
Morerod Lucien                                     1865 Les Diablerets               20        33         1/24/95       1/31/95
--------------------------------------------------------------------------------------------------------------------------------
Moser-Jaggi Muriel                                 3073 Gumligen                    100        73        12/15/95       1/11/96
--------------------------------------------------------------------------------------------------------------------------------
Moser-Jaggi Muriel                                 3073 Gumligen                    100        62          9/6/95       9/19/95
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>   25

Memorandum of Agreement
May 19, 1999
Page 25

<TABLE>
--------------------------------------------------------------------------------------------------------------------------------
<S>                                                <C>                            <C>         <C>       <C>           <C>
Moser-Jaggi Muriel                                 3073 Gumligen                    100        65         10/2/95       10/9/95
--------------------------------------------------------------------------------------------------------------------------------
Nievergelt Georges                                 8800 Thalwil                      41        35         1/24/95       1/27/95
--------------------------------------------------------------------------------------------------------------------------------
EXHIBIT 4 (CONTINUED)
PAGE 6 OF 6
BEARER SHARES
--------------------------------------------------------------------------------------------------------------------------------
Nussbaumer Mario                                   8834 Schindellegi                 40        93         2/11/97       2/12/97
--------------------------------------------------------------------------------------------------------------------------------
Nussbaumer-Dillier Monika                          8834 Schindellegi                 40        96         2/17/97       2/24/97
--------------------------------------------------------------------------------------------------------------------------------
Oeko Casa Investment- + Beteiligungsgesellschaft   8023 Zurich                      159       101         1/28/98
--------------------------------------------------------------------------------------------------------------------------------
Pensionskasse SBGRL                                8803 Ruschlikon                  200         4         1/24/95        2/9/95
--------------------------------------------------------------------------------------------------------------------------------
Peterhans Hans                                     1233 Bernex                       80        36         1/24/95       1/30/95
--------------------------------------------------------------------------------------------------------------------------------
Rahn & Bodmer                                      8001 Zurich                     1870       113         1/27/99        2/3/99
--------------------------------------------------------------------------------------------------------------------------------
Renz Thomas                                        1226 Thonex                       40        84         5/30/96       7/11/96
--------------------------------------------------------------------------------------------------------------------------------
Roulet Silvie                                      8810 Horgen                       39        61          9/6/95       9/20/95
--------------------------------------------------------------------------------------------------------------------------------
Schuler Benno                                      8807 Freienbach                   30        92         9/18/96      10/23/96
--------------------------------------------------------------------------------------------------------------------------------
Schuler Benno                                      8807 Freienbach                   20        95         2/17/97       4/23/97
--------------------------------------------------------------------------------------------------------------------------------
Schuler Luzia                                      8038 Zurich                       20        94         2/11/97       2/11/97
--------------------------------------------------------------------------------------------------------------------------------
Schuler Marlis                                     8807 Freienbach                   30        91         9/18/96       10/2/96
--------------------------------------------------------------------------------------------------------------------------------
Schwegler Daniel                                   6130 Willisau                     40       103         4/17/97       5/15/97
--------------------------------------------------------------------------------------------------------------------------------
Schweizer Christian                                1196 Gland                       300        37         1/24/95        2/7/95
--------------------------------------------------------------------------------------------------------------------------------
Schweizerische Bankgesellschaft                    8021 Zurich                      700        79          2/6/96       2/15/96
--------------------------------------------------------------------------------------------------------------------------------
Schweizerische Bankgesellschaft                    8021 Zurich                      200        77          2/5/96       2/15/96
--------------------------------------------------------------------------------------------------------------------------------
Sigrist Christian F.                               8304 Wallisellen                 560        38         1/24/95
--------------------------------------------------------------------------------------------------------------------------------
Trinkhaus & Burkhardt (International) S.A.         L-2015 Luxembourg                192        25         1/24/95        2/1/95
--------------------------------------------------------------------------------------------------------------------------------
Trinkhaus & Burkhardt (International) S.A.         L-2015 Luxembourg                192         3         1/24/95        2/1/95
--------------------------------------------------------------------------------------------------------------------------------
VTZ Versicherungs Treuhand AG                      8023 Zurich                       93       110        10/28/98
--------------------------------------------------------------------------------------------------------------------------------
Welter-Stalder Liselotte                           6460 Altdorf                      40        89         7/10/97       8/29/97
--------------------------------------------------------------------------------------------------------------------------------
Wiedmer-Wenk Eva                                   8616 Riedikon                     20        98         2/17/97       2/25/97
--------------------------------------------------------------------------------------------------------------------------------
Wittwer Arthur                                     8408 Winterthur                   40        40         1/24/95       1/30/95
--------------------------------------------------------------------------------------------------------------------------------
Wyss Gisela                                        1279 Chavannes-de-Bogis           40        48         4/18/95        5/1/95
--------------------------------------------------------------------------------------------------------------------------------
Wyss Michael                                       8712 Stafa                        32        66        11/16/95      11/28/95
--------------------------------------------------------------------------------------------------------------------------------
Zeltner Raymond                                    8246 Langwiesen                  500        41         1/24/95       1/31/95
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
TOTAL AKTIEN                                                                      12700
--------------------------------------------------------------------------------------------------------------------------------

--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>   26
Memorandum of Agreement
May 19, 1999
Page 26

EXHIBIT 5 TO MEMORANDUM OF AGREEMENT

Definitive Agreements to be concluded at Closing

-        Stock Purchase Agreement with Founders (under Swiss law (except as to
         corporate matters provided for under the laws of ASP's state of
         incorporation) and the Arbitral Tribunal appointed according to the
         rules of the Zurich Chamber of Commerce Arbitration rules having
         exclusive jurisdiction)
-        Stock Purchase Agreement with VTZ clients (under Swiss law (except as
         to corporate matters provided for under the laws of ASP's state of
         incorporation) and the Arbitral Tribunal appointed according to the
         rules of the Zurich Chamber of Commerce Arbitration rules having
         exclusive jurisdiction)
-        Shareholders Agreement (under Swiss law (except as to corporate matters
         provided for under the laws of ASP's state of incorporation) and the
         Arbitral Tribunal appointed according to the rules of the Zurich
         Chamber of Commerce Arbitration rules having exclusive jurisdiction)
-        Loan to Founders
-        License Agreement (under Swiss law and the Arbitral Tribunal
         appointed according to the rules of the Zurich Chamber of Commerce
         Arbitration rules having exclusive jurisdiction)

<PAGE>   27

Memorandum of Agreement
May 19, 1999
Page 27

EXHIBIT 6 TO MEMORANDUM OF AGREEMENT
PAGE 1 OF 4

                               DOCUMENT CONTENTS

VOLUME 1

                                 1. STRUCTURE

-     1.1   Felco Holding Zug AG (shareholder & company structure chart)
-     Share register of nominative shares
-     Mailing addresses for bearer shares
-     Trading registration form (Zug)

                                  2. BUSINESS

-     Fehlmann: One Hundred Years of Experience in Construction
        (details of enterprises, Fehlmann family, company)
-     Marketing Concept: Felco Lightweight Concrete
        (market volume/potential, competition, mission statement, marketing
        goals, strategy, technical product advantages, target markets, pricing,
        patent situation)
-     Product table (details of advantages, market status, development)
-     Company information & publicity material 1997 & 1998
-     Brochure: FELCO - Building materials make building easy 1994
-     Brochure: FELCO - Placement of Shares & Convertible Bonds 1994
-     Design brochure: Doppelschalen - System
-     SEE VOLUME 1.1 (brochure entitled FELCO - Building materials make building
      easy)

3.    ACCOUNTS & TAX POSITION

-     Interim balance sheet estimate: 31st October 1998
-     Interim balance sheet estimate: 30th September 1998
-     Balance sheets: 1999, 1998, 1997
-     Financial Statements: 1997, 1996, 1995, 1994
-     Kontoblatter: Intangible Assets 1992 - 98
-     3.3   Business plan (sales & revenues predictions): 1999 - 2001
-     Cash flow details: 1999
-     Budget: 1999
-     Budget: 2000

                                4. CONSTITUTION

-     Articles of Association:
        Streichung der Statutenbestimmungen uber die genehmigte Kapitalerhohung
        der Felco Holding Zug AG
-     Statuten der Gesellschaft
<PAGE>   28
Memorandum of Agreement
May 19, 1999
Page 28

EXHIBIT
PAGE 2 OF 4

                                  5. FINANCE

-     Summary of loan agreements
-     Copies of loan agreements for:
        Ciments Vigier SA
        Gallus Gerig-Arnold
        Christian F Sigrist
-     Loan commitments
-     5.2   not applicable
-     5.4   List of unpaid creditors 1996, 1997, 1998, 1999
-     5.5   Finance leasing agreements & commitments
-     Convertible loan contract & certificate
-     Leasing Agreement: LOANCAR AG
-     Summary of loans & honorary fees

                                   6. PROPERTY

-     6.1 Rent agreement, Zug

<PAGE>   29

Memorandum of Agreement
May 19, 1999
Page 29

EXHIBIT 6
PAGE 3 OF 4

VOLUME 2

                           7. INTELLECTUAL PROPERTY

-     Copies:
        US Patents 1999, 1997
        European pending patent 1997

        Swiss Trademark registration 1994
        Danish Trademark registration 1994
        German Trademark registration 1994
        Swedish Trademark registration 1996
        British & Northern Ireland Trademark registration 1995
        Chinese Trademark registration
        Organisation mondiale de la propriete intellectuelle: registration
        certificate

-     7.4   Licence agreement for Felco design, patent, product

-     Copies of licence agreements with:
        Ernst Schutz Kies und Beton AG
        A&J GmbH
        Frischbeton AG
        Zementwaren Otto Kalbermatten AG
        Arnold Dudler & Co
        BETON-MAYER AG
        A Foser AG
        BE-FIX AG
        IsoComp AG
        Hans Santer
        Alfred Helfer

-     7.7 Sales contract between Felco Holding Zug AG & Fehlmann Ingenieur AG
-     SEE VOLUME 2.1 (brochure entitled Test)
-     Proprietary Information Disclosure Agreement between Joseph Anderson,
      Strathclyde Technologies, Inc. & Felco

<PAGE>   30

Memorandum of Agreement
May 19, 1999
Page 30

EXHIBIT 6
PAGE 4 OF 4

VOLUME 3

                                8. FIXED ASSETS

-     8.1   Fixed Assets 1999
-     8.2   Insurance policy details

                              9. TRADING MATTERS

-     Terms & conditions for sale
-     List of large FELCO projects in preparation
-     9.4 SEE VOLUME 3.1 (brochure entitled Liberian Housing Development Project
      LHDP by FELCO TECHNOLOGY)
-     Copy of offer & estimate to BATIGROUP GU SA, Bern for Arteplages EXPO 01
-     Design brochure:
        EXPO 01 Arteplages: Floating Platforms with FELCO - Living Units
-     Copy of order confirmation letter to Spurgin & Leonhart
-     Letter of Intent: Beijing New Building Materials CO. (Group) LTD.
-     Delivery & Financing Contract for 300 buses with diesel motors:
        Felco & Cote d'Ivoire (unsigned)
-     Non-Official translation of above contract
-     Copy of contract for ,,Projet Excalibur" (unsigned)
-     Financing contract between Felco & Sotra Abidjan, Cote d'Ivoire (partwise
      signed)

                                 10. EMPLOYEES

-     10.1 List of categories of employees
-     10.4 List of employees under contract
-     10.8 Copy of letter and agreement from Swiss Life regarding pension fund
-     10.9 Copies of registration forms for members of collective insurance
      policy

                                11. LITIGATION

-     Details of claims and threats which may result in dispute procedures<PAGE>   1
                                                                   EXHIBIT 10(a)

================================================================================

                            SHARE EXCHANGE AGREEMENT

                                 BY AND BETWEEN

                    BULLET ENVIRONMENTAL TECHNOLOGIES, INC.

                                      AND

              DOUGLAS TOTH, WILLIAM E. SCHLOTH, NICHOLAS THOMPSON
                              AND MFC BANCORP LTD

                                      AND

                       SOMERSET FINANCIAL PARTNERS, INC.

                         DATED AS OF  NOVEMBER 15, 1999

================================================================================
<PAGE>   2

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                           PAGE
                                                                                                           ----
<S>                                                                                                       <C>
SECTION 1  PURCHASE AND SALE OF STOCK.......................................................................1
         1.1     Purchase and Sale of Stock.................................................................1
         1.2     Consideration; Share Exchange..............................................................1
         1.3     Closing....................................................................................2

SECTION 2  REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS
                 AND SOMERSET...............................................................................2
         2.1     Organization and Good Standing.............................................................2
         2.2     Authority and Validity.....................................................................2
         2.3     Title to Somerset Stock....................................................................3
         2.4     Capitalization of Somerset.................................................................3
         2.5     Somerset Subsidiaries......................................................................3
         2.6     Noncontravention...........................................................................4
         2.7     Actions and Proceedings....................................................................4
         2.8     Compliance.................................................................................4
         2.9     Filings, Consents and Approvals............................................................5
         2.10    [Intentionally Deleted]....................................................................5
         2.11    Financial Representations..................................................................6
         2.12    Accounts...................................................................................6
         2.13    Absence of Undisclosed Liabilities.........................................................6
         2.14    Tax Matters................................................................................7
         2.15    Absence of Changes.........................................................................7
         2.16    Personal Property..........................................................................9
         2.17    Related Entities...........................................................................9
         2.18    Insurance..................................................................................9
         2.19    Labor and Employment Matters...............................................................9
         2.20    Benefit Plans and Arrangements............................................................10
         2.21    Intellectual Property.....................................................................10
         2.22    Real Property.............................................................................11
         2.23    Material Contracts and Transactions.......................................................11
         2.24    Nondistributive Intent....................................................................12
         2.25    Access to Information.....................................................................12
         2.26    Residence of Stockholders.................................................................12
         2.27    No Brokers................................................................................12
         2.28    Completeness of Disclosure................................................................12

SECTION 3  REPRESENTATIONS AND WARRANTIES OF BLLE..........................................................13
         3.1     Organization and Good Standing............................................................13
         3.2     Authority and Validity....................................................................13
         3.3     Capitalization of BLLE....................................................................13
</TABLE>

                                       i

<PAGE>   3
<TABLE>
<S>                                                                                                       <C>
         3.4     Noncontravention..........................................................................14
         3.5     Actions and Proceedings...................................................................14
         3.6     Filings, Consents and Approvals...........................................................14
         3.7     Holding Company...........................................................................14
         3.8     Financial Statements......................................................................14
         3.9     No Brokers................................................................................15
         3.9     Completeness of Disclosure................................................................15

SECTION 4   CLOSING CONDITIONS.............................................................................15
         4.1     Conditions Precedent to Closing by BLLE...................................................15
         4.2     Conditions Precedent to Closing by the Stockholders.......................................18

SECTION 5  ADDITIONAL COVENANTS OF THE PARTIES.............................................................20
         5.1     Working Capital...........................................................................20
         5.2     Additional Financing......................................................................20
         5.3     Assumption of Lease Obligation; Leasehold Improvement Loan................................20
         5.4     Transfer and Release of Subsidiary Interest...............................................20
         5.5     Registration of BLLE Stock................................................................21
         5.6     Access and Investigation..................................................................21
         5.7     Confidentiality...........................................................................22
         5.8     Public Announcements......................................................................22
         5.9     Notification..............................................................................22
         5.10    Conduct of Somerset Prior to Closing......................................................22
         5.11    Non-Competition...........................................................................23
         5.12    Employment Agreements.....................................................................24
         5.13    Classified Board of Directors; Composition of Board.......................................24
         5.14    Closing Date Resolutions..................................................................24
         5.15    Annual Meeting............................................................................25
         5.16    Steering Committee........................................................................25

SECTION 6  TERMINATION.....................................................................................25
         6.1     Termination...............................................................................25
         6.2     Effect of Termination.....................................................................26

SECTION 7  INDEMNIFICATION; REMEDIES; SURVIVAL.............................................................26
         7.1     Certain Definitions.......................................................................26
         7.2     Agreement of the Stockholders and Somerset to Indemnify BLLE..............................26
         7.3     Agreement of BLLE to Indemnify the Stockholders...........................................27
         7.4     Procedures for Indemnification............................................................27
         7.5     Defense of Third Party Claims.............................................................28
         7.6     Settlement of Third Party Claims..........................................................28
         7.7     Limitations of Liability..................................................................29
         7.9     Survival of Representations and Warranties................................................29

SECTION 8  MISCELLANEOUS PROVISIONS........................................................................29
         8.1     Appointment of Stockholders Representative................................................29
         8.2     Effectiveness of Representations..........................................................29
</TABLE>

                                       ii

<PAGE>   4

<TABLE>
<S>                                                                                                       <C>
         8.3     Acknowledgment of Placement Agent and Deposit Agent.......................................29
         8.4     Further Assurances........................................................................30
         8.5     Amendment.................................................................................30
         8.6     Expenses..................................................................................30
         8.7     Entire Agreement..........................................................................30
         8.8     Severability..............................................................................30
         8.9     Notices...................................................................................30
         8.10    Headings..................................................................................32
         8.11    Benefits..................................................................................32
         8.12    Assignment................................................................................32
         8.13    Governing Law.............................................................................32
         8.14    Arbitration...............................................................................32
         8.15    Construction..............................................................................33
         8.16    Counterparts..............................................................................33
         8.17    Fax Execution.............................................................................33
         8.18    Schedules and Exhibits....................................................................33
</TABLE>

DISCLOSURE SCHEDULES
         Disclosure Schedule 1.2       Somerset Stock Ownership
         Disclosure Schedule 2.4       Capitalization of Somerset
         Disclosure Schedule 2.5       Somerset Subsidiaries and Restrictions
         Disclosure Schedule 2.7       Actions and Proceedings
         Disclosure Schedule 2.8       Compliance
         Disclosure Schedule 2.9       Filings, Consents, and Approvals
         Disclosure Schedule 2.11      Somerset Financial Statements
         Disclosure Schedule 2.12      Bank Accounts
         Disclosure Schedule 2.13      Undisclosed Liabilities
         Disclosure Schedule 2.15      Absence of Changes and Events
         Disclosure Schedule 2.16      Personal Property
         Disclosure Schedule 2.17      Related Entities
         Disclosure Schedule 2.18      Insurance
         Disclosure Schedule 2.19      Labor and Employment
         Disclosure Schedule 2.20      Benefit Plans
         Disclosure Schedule 2.21      Intellectual Property
         Disclosure Schedule 2.22      Real Property
         Disclosure Schedule 2.23      Material Contracts and Transactions
         Disclosure Schedule 2.26      Residences of Stockholders

EXHIBITS
                 Exhibit A         Employment Agreement - Form
                 Exhibit B         Stock Restriction Agreement
                 Exhibit C         Opinion of Counsel for Somerset
                 Exhibit D         Opinion of Counsel for BLLE
                 Exhibit E         Registration Rights Agreement

                                      iii

<PAGE>   5

                            SHARE EXCHANGE AGREEMENT

         THIS SHARE EXCHANGE AGREEMENT (this "Agreement") is entered into on
November 15, 1999, by: Bullet Environmental Technologies, Inc., a Delaware
corporation ("BLLE"); Somerset Financial Partners, Inc., a Connecticut
corporation ("Somerset"); and, Douglas Toth, a resident of New Jersey, William
E. Schloth, a resident of Connecticut, Nicholas Thompson, a resident of New
Jersey and, MFC Bancorp Ltd., a corporation organized under the laws of the
Yukon, Canada ("MFC"), (individually referred to herein as a "Stockholder" and
collectively as the "Stockholders"), being the holders of all the issued and
outstanding capital stock of Somerset.

                                  BACKGROUND:

         The Stockholders own all of the issued and outstanding shares of
Somerset common stock ("Somerset Stock").

         BLLE is a shell corporation with no active business that desires to
acquire all of the issued and outstanding Somerset Stock.

         The Stockholders have agreed to sell to BLLE, and BLLE has agreed to
purchase, the Somerset Stock from the Stockholders in exchange for shares of
BLLE common stock, pursuant to the terms and conditions set forth in this
Agreement.

         Somerset joins in the execution of this Agreement in consideration of
the anticipated benefit to be provided by its affiliation with BLLE.

         In consideration of the mutual representations, warranties, covenants
and agreements contained in this Agreement, the parties agree as follows:

                              STATEMENT OF TERMS:

                                   SECTION 1
                           PURCHASE AND SALE OF STOCK

         1.1     PURCHASE AND SALE OF STOCK.  The Stockholders agree to sell to
BLLE, and BLLE agrees to purchase from the Stockholders, all of the
Stockholders' right, title and interest in the Somerset Stock, representing
100% of the issued and outstanding stock of Somerset, free and clear of all
mortgages, liens, pledges, security interests, restrictions, encumbrances, or
adverse claims of any nature.

         1.2     CONSIDERATION; SHARE EXCHANGE.  At the Closing (as defined in
Section 1.3 below), upon surrender of the certificates evidencing the Somerset
Stock duly endorsed for transfer to BLLE, BLLE will cause 500,000 shares of the
common voting stock, par value $0.0001 of BLLE (the "BLLE Stock") to be issued
to the Stockholders, in full satisfaction of any right or interest which each
Stockholder held in the Somerset Stock. The BLLE Stock will be

<PAGE>   6

issued to the Stockholders on a pro rata basis, in the same proportion as the
percentage of their ownership interest in the Somerset Stock, as detailed on
Disclosure Schedule 1.2. As a result of the exchange of the Somerset Stock in
exchange for the BLLE Stock, Somerset will become a wholly-owned subsidiary of
BLLE.

         1.3     CLOSING.  The parties to this Agreement will hold a closing
(the "Closing") for the purpose of executing all of the documents contemplated
by this Agreement (collectively, the "Transaction Documents") and otherwise
effecting the transactions contemplated by this Agreement, at 12:00 pm on
December 16, 1999, or such other date and time mutually agreed upon by the
parties.  The Closing will be held at the offices of Powell, Goldstein, Frazer
& Murphy LLP, located at 1001 Pennsylvania Avenue, N.W., Sixth Floor South,
Washington, D.C.  20004, or at such other place as BLLE and the Stockholders
may reasonably agree. The date on which the Closing actually occurs is referred
to as the "Closing Date."

                                   SECTION 2
                         REPRESENTATIONS AND WARRANTIES
                        OF THE STOCKHOLDERS AND SOMERSET

         The Stockholders and Somerset individually, jointly and severally
represent and warrant to BLLE, and acknowledge and agree that BLLE is relying
upon such representations and warranties in connection with the execution,
delivery and performance of this Agreement, notwithstanding any investigation
made by or on behalf of BLLE:

         2.1     ORGANIZATION AND GOOD STANDING.  Each of Somerset and its
Subsidiaries (as defined below) is an entity duly organized, validly existing
and in good standing under the laws of Connecticut and has all requisite
corporate power and authority to own, lease and to carry on its business as now
being conducted. Each of Somerset and its Subsidiaries is duly qualified to do
business and is in good standing as a foreign corporation in each of the
jurisdictions in which it owns property, leases property, does business, or is
otherwise required to do so, where the failure to be so qualified would have a
material adverse effect on the business of Somerset and its Subsidiaries taken
as a whole.  As used in this Agreement, the term "Subsidiaries" means, with
respect to any person or other entity, any corporation or other organization,
whether incorporated or unincorporated, of which at least a majority of the
securities or interests having by the terms thereof ordinary voting power to
elect a majority of the board of directors or others performing similar
functions with respect to such corporation or other organization is at that
time directly or indirectly owned or controlled by such person, corporation or
other entity, or by any one or more of its Subsidiaries, or by such person,
corporation or other entity, and one or more of its Subsidiaries.

         2.2     AUTHORITY AND VALIDITY.  Somerset has all requisite corporate
power and authority to enter into this Agreement and the Transaction Documents
(as defined in Section 1.3) to which it is a party and to perform its
obligations thereunder and to consummate the transactions contemplated thereby.
The execution and delivery of this Agreement and each of the Transaction
Documents to which it is a party by Somerset and the consummation by Somerset
of the transactions contemplated thereby, have been duly authorized by the
board of directors of Somerset and the Stockholders and no other corporate
proceedings on the part of

                                      -2-

<PAGE>   7

Somerset are necessary to authorize such documents or to consummate the
transactions contemplated thereby.  This Agreement has been, and all the other
Transaction Documents to which it is a party when executed and delivered by the
Stockholders and Somerset as contemplated by this Agreement will be, duly
executed and delivered by the Stockholders and Somerset and this Agreement is,
and the other Transaction Documents when executed and delivered by the
Stockholders and Somerset as contemplated hereby will be, the valid and binding
obligation of the Stockholders and Somerset enforceable in accordance with
their respective terms, except (1) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, and other laws of general application
affecting enforcement of creditors' rights generally, and (2) as limited by
relating to the availability of specific performance, injunctive relief, or
other equitable remedies.

         2.3     TITLE TO SOMERSET STOCK.  The Stockholders have full right,
power and authority to sell, transfer and deliver the Somerset Stock, and upon
delivery of the certificates therefor as contemplated in this Agreement, the
Stockholders will transfer to BLLE valid and marketable title to the Somerset
Stock, including all voting and other rights to the Somerset Stock, free and
clear of all pledges, liens, security interests, adverse claims, options,
rights of any third party, or other encumbrances.

         2.4     CAPITALIZATION OF SOMERSET.  The entire authorized capital
stock and other equity securities of Somerset consists of 20,000 shares of
common stock, no par value, all of which are issued and outstanding to the
Stockholders as listed on Disclosure Schedule 2.4. Other than as listed in
Disclosure Schedule 2.4, there are no agreements purporting to restrict the
transfer of the Somerset Stock, nor any voting agreements, voting trusts or
other arrangements restricting or affecting the voting of the Somerset Stock.
The Somerset Stock held by the Stockholders is duly and validly issued, fully
paid and non-assessable, and issued in full compliance with all federal, state,
and local laws, rules and regulations. There are no subscription rights,
options, warrants, convertible securities, or other rights (contingent or
otherwise) presently outstanding, for the purchase, acquisition, or sale of the
capital stock of Somerset, or any securities convertible into or exchangeable
for capital stock of Somerset or other securities of Somerset, from or by
Somerset. There are no stock appreciation rights, phantom stock, or similar
rights in existence with respect to Somerset.

         2.5     SOMERSET SUBSIDIARIES.  Somerset has three Subsidiaries:
Somerset Financial Group, Inc. ("Somerset Financial"), Somerset Capital, LLC.,
and Somerset Investment Management, LLC. ("Somerset Investment").  All of the
shares of capital stock or membership interests of each Subsidiary of Somerset
are owned directly by Somerset free and clear of all claims, liens, charges,
security interest, encumbrances and other restrictions or limitations of any
kind, and such shares are duly authorized, validly issued, were not issued in
violation of any preemptive rights, are fully paid and nonassessable, and were
issued in full compliance with all federal, state, provincial and local laws,
rules and regulations.  Except as set forth on Disclosure Schedule 2.5, there
are no outstanding options, warrants, subscriptions, conversion rights or other
rights, agreements or commitments obligating any Subsidiary to issue any
additional shares of the capital stock of any Subsidiary of Somerset or any
other securities convertible into, exchangeable for, or evidencing the right to
subscribe for or acquire from any Subsidiary any shares of its capital stock.
Somerset and the Subsidiaries do not own, directly or indirectly, any capital
stock or other equity

                                      -3-

<PAGE>   8

securities of any corporation other than the Subsidiaries set forth in
Disclosure Schedule 2.5 or have any direct or indirect equity or ownership
interest in any other business.

         2.6     NONCONTRAVENTION.  Neither the execution, delivery and
performance of the Transaction Documents, nor the consummation of the
transactions contemplated thereby nor compliance with the provisions thereof,
will:

                 (1)      Conflict with, result in a violation of, cause a
         default under (with or without notice, lapse of time or both) or give
         rise to a right of termination, amendment, cancellation or
         acceleration of any obligation contained in or the loss of any
         material benefit under, or result in the creation of any lien,
         security interest, charge or encumbrance upon any of the material
         properties or assets of Somerset or its Subsidiaries under any term,
         condition or provision of any loan or credit agreement, note,
         debenture, bond, mortgage, indenture, lease or other agreement,
         instrument, permit, license, judgment, order, decree, statute, law,
         ordinance, rule or regulation applicable to Somerset or its
         Subsidiaries, or their respective properties or assets;

                 (2)      Violate any provision of the articles or certificate
         of incorporation or by-laws of Somerset or its Subsidiaries; or

                 (3)      Violate any order, writ, injunction, decree, statute,
         rule, or regulation of any court or governmental or regulatory
         authority applicable to Somerset or its Subsidiaries or any of their
         respective properties or assets.

         2.7     ACTIONS AND PROCEEDINGS.  There is no claim, charge,
arbitration, grievance, action, suit, investigation or proceeding by or before
any court, arbiter, administrative agency or other governmental authority now
pending or, to the Stockholders' and Somerset's knowledge, threatened against
the Stockholders, Somerset or any of its Subsidiaries, or which involves any of
the business, or the properties or assets of Somerset or its Subsidiaries that,
if adversely resolved or determined, would have a material adverse effect on
the business, operations, assets, properties, prospects, or conditions of
Somerset or its Subsidiaries taken as a whole ("Material Adverse Effect").
There is no reasonable basis for any claim or action that, based upon the
likelihood of its being asserted and its success if asserted, would have such a
Material Adverse Effect.   Disclosure Schedule 2.7 lists all pending legal
claims or proceedings, whether or not such claim or proceeding would result in
a Material Adverse Effect if decided against Somerset or its Subsidiaries.

         2.8     COMPLIANCE.

                 (a)  Somerset and its Subsidiaries are in compliance with, are
not in default or violation in any material respect under, and have not been
charged with or received any notice at any time of any material violation by it
of, any statute, law, ordinance, regulation, rule, decree or other applicable
regulation to the business or operations of Somerset or its Subsidiaries.
Somerset Financial is registered with the National Association of Securities
Dealers, Inc. ("NASD") as a registered broker/dealer and such registration is
current in all respects.  Somerset Investment's application to be registered as
an investment advisor in the State of Connecticut is

                                      -4-

<PAGE>   9

pending.  Except as set forth on Disclosure Schedule 2.8, neither Somerset, its
Subsidiaries, nor any of their respective employees, officers, members or
directors (including the Stockholders) is the subject of any disciplinary
proceedings before, or under investigation by, the NASD, the Securities and
Exchange Commission ("SEC"), any securities exchanges or markets, any state
securities division or other regulatory bodies. Except as disclosed on
Disclosure Schedule 2.8, neither Somerset nor any of its Subsidiaries have
received, since their inception to the date hereof, any written complaints or
requests for refunds of commissions or other amounts paid. Annexed hereto as
Disclosure Schedule 2.8 is a true and complete list of the Forms U-4 for all
registered representatives and principals of Somerset or its Subsidiaries; all
Forms BD and amendments thereto filed with the SEC by Somerset or its
Subsidiaries; and Form ADV filed in order for Somerset Investment to become a
registered investment advisor. Somerset has provided a BLLE with a true and
complete copy of each of the forms listed on Disclosure Schedule 2.8. All such
filings were, to the best knowledge of Somerset and the Stockholders, true and
accurate in all material respects when filed and no further amendment thereof
is currently required.

                 (b)  Neither Somerset nor any of its Subsidiaries is subject
to any judgment, order or decree entered in any lawsuit or proceeding
applicable to their respective business and operations that would have a
Material Adverse Effect.

                 (c)  Somerset and its Subsidiaries have duly filed all reports
and returns required to be filed by it with governmental authorities and have
obtained all governmental permits and licenses and other governmental consents,
except as may be required after the execution of this Agreement.  All of such
permits, licenses and consents are in full force and effect, and no proceedings
for the suspension or cancellation of any of them, and no investigation
relating to any of them, is pending or, to the best knowledge of Somerset and
the Stockholders, threatened, and none of them will be adversely affected by
the consummation of the transactions contemplated hereby.

                 (d)  Somerset and its Subsidiaries have operated in material
compliance with all laws, rules, statutes, ordinances, orders and regulations
applicable to its business, including, without limitation, those applicable to
Somerset and its Subsidiaries under the Occupational Safety and Health Act of
1970, as amended, or any equivalent state law.  Neither Somerset nor any of its
Subsidiaries has received any notice of any violation thereof, nor are Somerset
or the Stockholders aware of any valid basis therefor.

         2.9     FILINGS, CONSENTS AND APPROVALS.  Except as listed on
Disclosure Schedule 2.9, no filing or registration with, no notice to and no
permit, authorization, consent, or approval of any public or governmental body
or authority or other person or entity is necessary for the consummation by
Somerset of the transactions contemplated by this Agreement or to enable
Somerset and its Subsidiaries to continue to conduct its business after the
Closing Date in a manner which is consistent with that in which it is presently
conducted.

         2.10     [Intentionally Deleted.]

                                      -5-

<PAGE>   10
         2.11    FINANCIAL REPRESENTATIONS.  Attached to this Agreement as
Disclosure Schedule 2.11 are true, correct, and complete copies of (i) an
unaudited consolidated balance sheet for Somerset dated as of December 31,
1998, together with related statements of income, cash flows, and changes in
shareholder's equity for the fiscal year then ended, (ii) an unaudited
consolidated balance sheet of Somerset dated as of August 31, 1999, together
with related consolidated st atements of income, cash flows, and changes in
shareholder's equity, (iii) an audited balance sheet for Somerset Financial
dated as of December 31, 1998, together with related statements of income, cash
flows, and changes in shareholder's equity for the fiscal year then ended, and
(iv) an unaudited balance sheet of Somerset Financial dated as of August 31,
1999, together with related statements of income, cash flows, and changes in
shareholder's equity (collectively, the "Somerset Financial Statements").  The
Somerset Financial Statements (a) are in accordance with the books and records
of Somerset and (b) present fairly the financial condition of Somerset as of
the respective dates indicated and the results of operations for such periods.
Somerset has not received any advice or notification from its independent
certified public accountants that Somerset or any of its Subsidiaries has used
any improper accounting practice that would have the effect of not reflecting
or incorrectly reflecting in the Somerset Financial Statements or the books and
records of Somerset, its Subsidiaries, any properties, assets, liabilities,
revenues, or expenses.  The books, records, and accounts of Somerset accurately
and fairly reflect, in reasonable detail, the transactions, assets, and
liabilities of Somerset.  Somerset has not engaged in any transaction,
maintained any bank account, or used any funds of Somerset, except for
transactions, bank accounts, and funds which have been and are reflected in the
normally maintained books and records of Somerset.

         2.12    ACCOUNTS.  Disclosure Schedule 2.12 sets forth and describes
(a) all bank accounts owned or maintained by Somerset or any of its
Subsidiaries and all authorized signatories with respect thereto, and (b) all
safety deposit boxes maintained by Somerset or any of its Subsidiaries and all
persons who have access thereto.

         2.13    ABSENCE OF UNDISCLOSED LIABILITIES.  Except as set forth in
Disclosure Schedule 2.13, Somerset and its Subsidiaries have no liabilities or
obligations either direct or indirect, matured or unmatured, absolute,
contingent or otherwise, which:

                 (a)    are not set forth in the Financial Statements or have
not heretofore been paid or discharged;

                 (b)    did not arise in the regular and ordinary course of
business under any agreement, contract, commitment, lease or plan specifically
disclosed (or are not required to be disclosed in accordance with GAAP); or

                 (c)    have not been incurred in amounts and pursuant to
practices consistent with past business practice, in or as a result of the
regular and ordinary course of its business since the date of the last Financial
Statements.

         For purposes of this Agreement, the term "liabilities" includes, any
direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage,
deficiency, cost, expense, obligation

                                      -6-

<PAGE>   11

or responsibility, fixed or unfixed, known or unknown, asserted or unasserted,
choate or inchoate, liquidated or unliquidated, secured or unsecured.

         2.14    TAX MATTERS.  "Tax" or "Taxes" means any and all taxes,
charges, fees, levies, duties or other assessments whether federal, state,
local or foreign, based upon or measured by income, capital, net worth or gain
and any other tax including, recapture, gross receipts, profits, sales, use,
occupation, use and occupancy, value added, ad valorem, customers, transfer,
franchise, shares, withholding, payroll, employment, excise, or property taxes
with respect to Somerset and any of its Subsidiaries, together with any
interest, fines, penalties and additions to tax imposed with respect thereto.

                 (a)    As of the date hereof, (i) Somerset and its Subsidiaries
have timely filed all Tax returns which are required to be filed on or prior to
the date hereof, taking into account any extensions of the filing deadlines
which have been validly granted to them; and (ii) all such returns are true and
correct in all material respects.

                 (b)    Somerset and its Subsidiaries have paid all Taxes that
have become or are due with respect to any period ended on or prior to the date
hereof, and has established an adequate reserve therefore on its balance sheet
for those Taxes not yet due and payable, except for any Taxes the non-payment of
which will not have a Material Adverse Effect.

                 (c)    Neither Somerset nor any of its Subsidiaries are
presently under, nor have they received notice of, any contemplated
investigation or audit by the Internal Revenue Service or any foreign or state
taxing authority concerning any fiscal year or period ended prior to the date
hereof.

                 (d)    All Taxes required to be withheld on or prior to the
date hereof from employees for income Taxes, social security Taxes, unemployment
Taxes and other similar withholding Taxes have been properly withheld and, if
required on or prior to the date hereof, have been deposited with the
appropriate governmental agency.

                 (e)    Neither Somerset nor any of its Subsidiaries are a party
to any tax-sharing agreements or similar contracts or arrangements.

         2.15    ABSENCE OF CHANGES.  Except as set forth in Disclosure
Schedule 2.15, since December 31, 1998, neither Somerset nor its Subsidiaries
have:

                 (a)    incurred any liabilities, other than liabilities
incurred in the ordinary course of business consistent with past practice, or
discharged or satisfied any lien or encumbrance, or paid any liabilities, other
than in the ordinary course of business consistent with past practice, or failed
to pay or discharge when due any liabilities of which the failure to pay or
discharge has caused or will cause any material damage or risk of material loss
to it or any of its assets or properties;

                 (b)    sold, encumbered, assigned or transferred any fixed
assets or properties which would have been included in the assets of Somerset or
its Subsidiaries if the closing had

                                      -7-

<PAGE>   12

been held on December 31, 1998 or on any date since then, except for ordinary
course of business transactions consistent with past practice;

                 (c)    created, incurred, assumed or guaranteed any
indebtedness for money borrowed, or mortgaged, pledged or subjected any of the
assets or properties of Somerset or its Subsidiaries to any mortgage, lien,
pledge, security interest, conditional sales contract or other encumbrance of
any nature whatsoever;

                 (d)    made or suffered any amendment or termination of any
material agreement, contract, commitment, lease or plan to which it is a party
or by which it is bound, or cancelled, modified or waived any substantial debts
or claims held by it or waived any rights of substantial value, whether or not
in the ordinary course of business;

                 (e)    declared, set aside or paid any dividend or made or
agreed to make any other distribution or payment in respect of its capital
shares or redeemed, purchased or otherwise acquired or agreed to redeem,
purchase or acquire any of its capital shares or equity securities;

                 (f)    suffered any damage, destruction or loss, whether or not
covered by insurance, materially and adversely affecting its business,
operations, assets, properties or prospects;

                 (g)    suffered any material adverse change in its business,
operations, assets, properties, prospects or condition (financial or
otherwise);

                 (h)    received notice or had knowledge of any actual or
threatened labor trouble, termination, resignation, strike or other occurrence,
event or condition of any similar character which has had or might have an
adverse effect on its business, operations, assets, properties or prospects;

                 (i)    made commitments or agreements for capital expenditures
or capital additions or betterments exceeding in the aggregate $5,000.00, except
such as may be involved in ordinary repair, maintenance or replacement of its
assets;

                 (j)    other than in the ordinary course of business, increased
the salaries or other compensation of, or made any advance (excluding advances
for ordinary and necessary business expenses) or loan to, any of its employees
or made any increase in, or any addition to, other benefits to which any of its
employees may be entitled;

                 (k)    changed any of the accounting principles followed or
the methods of applying such principles;

                 (l)    entered into any transaction other than in the ordinary
course of business consistent with past practice; or

                 (m)    agreed, whether in writing or orally, to do any of the
foregoing.

                                      -8-

<PAGE>   13

         2.16    PERSONAL PROPERTY. Disclosure Schedule 2.16 contains a list of
all material equipment, furniture, fixtures and other tangible personal
property and assets owned or leased by Somerset or its Subsidiaries.  Except as
disclosed on Disclosure Schedule 2.16, Somerset and its Subsidiaries possess
all property and items necessary for the continued operation of the business of
Somerset or its Subsidiaries as presently conducted.  All of such items are in
good operating condition (normal wear and tear excepted), and are reasonably
fit for the purposes for which the such item is presently used.

         2.17    RELATED ENTITIES.  Except as set forth on Disclosure Schedule
2.17, neither Somerset, its Subsidiaries, nor any Stockholder, director,
officer or employee of Somerset or its Subsidiaries, or any member of his or
her immediate family or any other of its, his or her affiliates, owns or has an
ownership interest in any corporation or other entity that is or was during the
last three years a party to, or in any property which is or was during the last
three years the subject of, any material contract, agreement or understanding,
business arrangement or relationship with Somerset.   Disclosure Schedule 2.17
provides a description of each such related entity and the interest held
therein.

         2.18    INSURANCE.  The assets, properties and operations of Somerset
and its Subsidiaries are insured under various policies of general liability
and other forms of insurance consistent with prudent business practices.  All
such policies are in full force and effect in accordance with their terms, no
notice of cancellation has been received, and there is no existing default by
Somerset or its Subsidiaries or event which, with the giving of notice, the
lapse of time or both, would constitute a default thereunder.  All premiums to
date have been paid in full.  Disclosure Schedule 2.18 contains a list of all
outstanding bonds and other surety arrangements issued or entered into in
connection with the business, assets and liabilities of Somerset and its
Subsidiaries, a true and complete copy of which have been provided by Somerset
to BLLE.

         2.19    LABOR AND EMPLOYMENT MATTERS.

                 (a)    No employee of Somerset or its Subsidiaries is covered
by any collective bargaining agreement.

                 (b)    Somerset and its Subsidiaries have complied, and are
currently in compliance, in all material respects with applicable laws, rules
and regulations relating to the employment of labor, including without
limitation those relating to wages, hours, unfair labor practices,
discrimination and payment of social security and similar taxes.

                 (c)    With respect to the business, neither Somerset nor its
Subsidiaries are  liable for any unpaid wages, bonuses, or commissions (other
than those not yet due) or any tax, penalty, assessment, or forfeiture for
failure to comply with any of the foregoing.  All officers, employees, and
agents of Somerset and its Subsidiaries are employees at-will, and for
indefinite terms and there is no outstanding agreement or arrangement with
respect to severance payments.

                 (d)    Disclosure Schedule 2.19 contains a complete and
accurate list of the following information for each employee, consultant,
member or director of Somerset or its Subsidiaries that receives annual
compensation is excess of Twenty Thousand Dollars ($20,000.00),

                                      -9-

<PAGE>   14

including each employee on leave of absence or layoff status: employer; name;
job title; hire date; current compensation paid or payable and any change in
compensation since December 31, 1998; vacation accrued; and service credited
for purposes of vesting and eligibility to participate under any of the Benefit
Plans (as defined in Section 2.20 of this Agreement).

         2.20    BENEFIT PLANS AND ARRANGEMENTS.  Disclosure Schedule 2.20
contains a list of all employee benefit plans (as defined in Section 3(3) of the
Employee Retirement Income Security Act of 1974 ("ERISA")), and all other
deferred compensation or fringe benefit plans, arrangements or practices of
Somerset and its Subsidiaries, including without limitation, severance pay,
stock options and similar plans or arrangements and other benefit obligations of
Somerset and its Subsidiaries, whether oral or written, to any of its employees
(the "Benefit Plans"). A true and complete copy of each Benefit Plan has been
provided to BLLE. The Benefit Plans are the only Benefit Plans maintained by or
contributed to by Somerset and its Subsidiaries for the benefit of its
Stockholders, officers, directors, employees or former employees which are
related to the assets of Somerset, its Subsidiaries, or the business of Somerset
and its Subsidiaries. Each such Benefit Plan, which is subject to ERISA and the
Tax Reform Act of 1986, as amended (the "Code"), is and always has been in
substantial compliance with the provisions of ERISA and the Code, and they, and
all other such plans are in compliance with all other laws applicable thereto.
Somerset and its Subsidiaries maintain no plan or program that provides
post-retirement medical or death benefits or other post-retirement health or
welfare benefits. Neither Somerset nor its Subsidiaries has ever contributed to
nor been obligated to contribute to any multiemployer plan as defined in Section
4001(a)(3) of ERISA. The consummation of the transactions contemplated by this
Agreement will not accelerate or increase any liability, or accelerate or
increase any right or benefit to which employees may be entitled to, under any
of the Benefit Plans. Each of the Benefit Plans may be terminated without
resulting in any liability to Somerset or its Subsidiaries. Except as
specifically disclosed in Disclosure Schedule 2.20, there are no actions,
audits, investigations, suits or claims pending, or threatened against Somerset,
its Subsidiaries, or any of the Benefit Plans and they have no liabilities with
respect to any of the Benefit Plans.

         2.21    INTELLECTUAL PROPERTY.  Listed on Disclosure Schedule 2.21 are
all intellectual property assets used by Somerset and its Subsidiaries in the
operation of its business, including trade names, patents, service marks,
copyrights, and any applications for any of the foregoing (the "Intellectual
Property Assets").  The Intellectual Property Assets include all those
necessary for the operation of the business of Somerset and its Subsidiaries as
they are currently conducted.  Unless stated otherwise on Disclosure Schedule
2.21, Somerset or its Subsidiaries are the owner of all right, title, and
interest in and to each of the Intellectual Property Assets, free and clear of
all liens, security interests, charges, encumbrances, equities, and other
adverse claims, and has the right to use without payment to a third party all
of the Intellectual Property Assets.  Neither Somerset nor any of its
Subsidiaries infringes upon or unlawfully or wrongfully use any trademarks,
patents, copyrights or trade secrets owned or claimed by another. Disclosure
Schedule 2.21 lists all confidentiality or non-disclosure agreements to which
Somerset, its Subsidiaries or any of their employees is a party. No employee,
director, officer or Stockholder of Somerset or its Subsidiaries owns, directly
or indirectly, in whole or in part, any Intellectual Property Asset used by
Somerset or the Subsidiaries.

                                      -10-

<PAGE>   15

         2.22    REAL PROPERTY.

                 (a)    Neither Somerset nor its Subsidiaries own any real
property.

                 (b)    Disclosure Schedule 2.22 contains a true and correct
list of each parcel of real property leased by Somerset and its Subsidiaries,
detailing the expiration date of each lease, and the monthly rent payable
thereunder. All of the leases detailed in Disclosure Schedule 2.22 are in full
force and effect, and no event has occurred which with the passing of time, the
giving of notice, or both, would constitute a default under any of the leases.

                 (c)    Neither Somerset nor its Subsidiaries has received
written notice of any pending or threatened eviction proceedings, condemnations,
planned public improvements, annexation, special assessments, zoning or
subdivision changes, or other adverse claims affecting the leased real property.
There are no material past due ad valorem or other real estate taxes,
assessments, or other charges affecting the leased real property.

         2.23    MATERIAL CONTRACTS AND TRANSACTIONS.  Disclosure Schedule 2.23
contains a list of all material contracts, agreements, licenses, permits,
arrangements, commitments, instruments, understandings or contracts, whether
written or oral, express or implied, contingent, fixed or otherwise, to which
Somerset or its Subsidiaries is a party (collectively, the "Contracts").

         (a)     Except as listed on Disclosure Schedule 2.23, neither Somerset
nor its Subsidiaries is a party to any written or oral:

                 (1)      contract for the purchase, sale or lease of any
         capital assets, or continuing contracts for the purchase or lease of
         any materials, supplies, equipment, real property or services;

                 (2)      agreement regarding sales agency, distributorship, or
         the payment of commissions;

                 (3)      agreement for the employment or consultancy of any
         person or entity;

                 (4)      note, debenture, bond, trust agreement, letter of
         credit agreement, loan agreement, or other contract or commitment for
         the borrowing or lending of money, or agreement or arrangement for a
         line of credit or guarantee, pledge, or undertaking of the
         indebtedness of any other person;

                 (5)      agreement, contract, or commitment for any charitable
         or political contribution;

                 (6)      agreement, contract, or commitment limiting or
         restraining Somerset or its Subsidiaries, their business or any
         successor thereto from engaging or competing in any manner or in any
         business or from hiring any employees, nor is any employee of Somerset
         or its Subsidiaries subject to any such agreement, contract, or
         commitment;

                                      -11-

<PAGE>   16
                 (7)      material agreement, contract, or commitment not made
         in the ordinary course of business;

                 (8)      agreement establishing or providing for any joint
         venture, partnership, or similar arrangement with any other person or
         entity;
                 (9)      agreement, contract or understanding containing a
         "change in control," "potential change in control" or similar
         provision; or

                 (10)     power of attorney or similar authority to act.

         (b)     Each Contract is in full force and effect, and there exists no
material breach or violation of or default by Somerset or its Subsidiaries
under any Contract nor by any other party to a Contract, or any event that with
notice or the lapse of time, or both, will create a material breach or
violation thereof or default under any Contract by Somerset, its Subsidiaries,
nor by any other party to a Contract.  The continuation, validity, and
effectiveness of each Contract will in no way be affected by the consummation
of the transactions contemplated by this Agreement.  Except as listed on
Disclosure Schedule 2.23, there exists no actual or threatened termination,
cancellation, or limitation of, or any amendment, modification, or change to
any Contract.  A true, correct and complete copy (and if oral, a description of
material terms) of each Contract, as amended to date, has been furnished to
BLLE.

         2.24  NONDISTRIBUTIVE INTENT. The Stockholders are acquiring the BLLE
Stock for their own account (and not for the account of others) for investment
and not with a view to the distribution therefor.  The Stockholders will not
sell or otherwise dispose of such BLLE Stock without registration under the
Securities Act of 1933, as amended, or an exemption therefrom, and the
certificate or certificates representing such shares may contain a legend to the
foregoing effect.

         2.25  ACCESS TO INFORMATION.  The Stockholders and Somerset have had
access to all documents and information about BLLE and have reviewed sufficient
information to allow them to evaluate the merits and risks of the acquisition of
the BLLE Stock.

         2.26  RESIDENCE OF STOCKHOLDERS.  Disclosure Schedule 2.26 lists the
jurisdictions in which (i) Douglas Toth, Nicholas Thompson, and William E.
Schloth (collectively, the "Individual Stockholders") reside, and (ii) MFC is
incorporated and maintains its principle place of business.

         2.27  NO BROKERS.  Neither the Stockholders nor Somerset has incurred
any obligation or liability to any party for any brokerage fees, agent's
commissions, or finder's fees in connection with the transactions contemplated
by this Agreement for which BLLE would be responsible.

         2.28  COMPLETENESS OF DISCLOSURE.  No representation or warranty by
the Stockholders or Somerset in this Agreement nor any certificate, schedule,
statement, document or instrument furnished or to be furnished to BLLE pursuant
hereto contains or will contain any untrue

                                      -12-

<PAGE>   17

statement of a material fact or omits or will omit to state a material fact
required to be stated herein or therein or necessary to make any statement
herein or therein not materially misleading.

                                   SECTION 3
                     REPRESENTATIONS AND WARRANTIES OF BLLE

         BLLE hereby represents and warrants to the Stockholders, and
acknowledges that the Stockholders are relying upon such representations and
warranties, in connection with the execution, delivery and performance of this
Agreement, notwithstanding any investigation made by or on behalf of BLLE:

         3.1     ORGANIZATION AND GOOD STANDING.  BLLE is a corporation duly
organized, validly existing and in good standing under the laws of Delaware and
has all requisite corporate power and authority to own, lease and operate its
properties and to carry on its business as now being conducted.  BLLE has no
Subsidiaries.

         3.2     AUTHORITY AND VALIDITY.  BLLE has all requisite corporate
power and authority to enter into this Agreement and the Transaction Documents
to which it is a party and to perform its obligations thereunder and to
consummate the transactions contemplated thereby.  The execution and delivery
of this Agreement and each of the Transaction Documents to which it is a party
by BLLE and the consummation by BLLE of the transactions contemplated thereby,
have been duly authorized by the board of directors of BLLE and no other
corporate proceedings on the part of BLLE are necessary to authorize such
documents or to consummate the transactions contemplated thereby. This Agreement
has been, and all the other Transaction Documents to which it is a party when
executed and delivered by BLLE as contemplated by this Agreement will be, duly
executed and delivered by BLLE and this Agreement is, and the other Transaction
Documents when executed and delivered by BLLE as contemplated hereby will be,
the valid and binding obligation of BLLE enforceable in accordance with their
respective terms, except (1) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, and other laws of general application affecting
enforcement of creditors' rights generally, and (2) as limited by laws relating
to the availability of specific performance, injunctive relief, or other
equitable remedies.

         3.3     CAPITALIZATION OF BLLE.  The entire authorized capital stock
and other equity securities of BLLE consists of 5,000,000 shares of preferred
stock, par value $0.0001 per share and 30,000,000 shares of common stock, par
value $0.0001 per share, of which 2,150,422 shares of common stock are issued
and outstanding.  BLLE is not aware of any agreements purporting to restrict
the transfer of the BLLE Stock, nor any voting agreements, voting trusts or
other arrangements restricting or affecting the voting of the BLLE Stock. There
are no subscription rights, options, warrants, convertible securities, or other
rights (contingent or otherwise) presently outstanding, for the purchase,
acquisition, or sale of the capital stock of BLLE, or any securities
convertible into or exchangeable for capital stock of BLLE or other securities
of BLLE, from or by BLLE.  There are no stock appreciation rights, phantom
stock, or similar rights in existence with respect to BLLE.

                                      -13-

<PAGE>   18

         3.4     NONCONTRAVENTION.  Neither the execution, delivery and
performance of the Transaction Documents, nor the consummation of the
transactions contemplated thereby nor compliance with the provisions thereof,
will:

                 (1)      Conflict with, result in a violation of, cause a
         default under (with or without notice, lapse of time or both) or give
         rise to a right of termination, amendment, cancellation or
         acceleration of any obligation contained in or the loss of any
         material benefit under, or result in the creation of any lien,
         security interest, charge or encumbrance upon any of the material
         properties or assets of BLLE under any term, condition or provision of
         any loan or credit agreement, note, debenture, bond, mortgage,
         indenture, lease or other agreement, instrument, permit, license,
         judgment, order, decree, statute, law, ordinance, rule or regulation
         applicable to BLLE or its properties or assets;

                 (2)      Violate any provision of the articles or certificate
         of incorporation or by-laws of BLLE; or

                 (3)      Violate any order, writ, injunction, decree, statute,
         rule, or regulation of any court or governmental or regulatory
         authority applicable to BLLE or any of its properties or assets.

         3.5     ACTIONS AND PROCEEDINGS.  There is no claim, charge,
arbitration, grievance, action, suit, investigation or proceeding by or before
any court, arbiter, administrative agency or other governmental authority now
pending or, to BLLE's knowledge, threatened against BLLE, or which involves any
of the business, or the properties or assets of BLLE that, if adversely
resolved or determined, would have a material adverse effect on the business,
operations, assets, properties, prospects, or conditions of BLLE. There is no
reasonable basis for any claim or action that, based upon the likelihood of its
being asserted and its success if asserted, would have a material adverse
effect.

         3.6     FILINGS, CONSENTS AND APPROVALS.  Except for a Form 8-K to be
filed after Closing pursuant to Rule 13 of the Securities Exchange Act of 1934,
no filing or registration with, no notice to and no permit, authorization,
consent, or approval of any public or governmental body or authority or other
person or entity is necessary for the consummation by BLLE of the transactions
contemplated by this Agreement.

         3.7     HOLDING COMPANY.  BLLE is a holding company and does not own
any significant or material assets or engage in any business.  Other than this
Agreement and the Transaction Documents, BLLE is not a party to any contracts
and has no material liabilities of any kind.

         3.8     FINANCIAL STATEMENTS.  True, correct, and complete copies of
(i) an audited balance sheet for BLLE (formerly known as Anglo-Sierra Resources
Corp.) dated as of February 28, 1999, together with related statements of
income, cash flows, and changes in shareholder's equity for the fiscal year
then ended and (ii) an unaudited balance sheet of BLLE dated as of May 31,
1999, together with related statements of income, cash flows, and changes in

                                      -14-

<PAGE>   19

shareholder's equity for that period were attached to, and made part of, the
Form 10-SB electronically filed with the SEC by BLLE on July 20, 1999
(collectively, the "10-SB Statements").  An unaudited balance sheet for BLLE
dated as of August 31, 1999, together with related statements of income, cash
flows, and changes in shareholder's equity for the fiscal year then ended were
attached to, and made part of, the Form 10-QSB electronically filed with the
SEC by BLLE on November 3, 1999 (collectively, together with the 10-SB
Statements, the "BLLE Financial Statements"). The BLLE Financial Statements (a)
are in accordance with the books and records of BLLE and (b) present fairly the
financial condition of BLLE as of the respective dates indicated and the results
of operations for such periods. BLLE has not received any advice or notification
from its independent chartered accountants that BLLE has used any improper
accounting practice that would have the effect of not reflecting or incorrectly
reflecting in the BLLE Financial Statements or the books and records of BLLE,
any properties, assets, liabilities, revenues, or expenses. The books, records,
and accounts of BLLE accurately and fairly reflect, in reasonable detail, the
transactions, assets, and liabilities of BLLE. BLLE has not engaged in any
transaction, maintained any bank account, or used any funds of BLLE, except for
transactions, bank accounts, and funds which have been and are reflected in the
normally maintained books and records of BLLE.

         3.9     NO BROKERS.  BLLE has not incurred any obligation or liability
to any party for any brokerage fees, agent's commissions, or finder's fees in
connection with the transactions contemplated by this Agreement for which
Somerset or the Stockholders would be responsible.

         3.10    COMPLETENESS OF DISCLOSURE.  No representation or warranty by
BLLE in this Agreement nor any certificate, schedule, statement, document or
instrument furnished or to be furnished to the Stockholders pursuant hereto
contains or will contain any untrue statement of a material fact or omits or
will omit to state a material fact required to be stated herein or therein or
necessary to make any statement herein or therein not materially misleading.

                                   SECTION 4
                               CLOSING CONDITIONS

         4.1     CONDITIONS PRECEDENT TO CLOSING BY BLLE.  BLLE's obligation to
consummate the transactions contemplated by this Agreement is subject to the
satisfaction of the conditions set forth below and/or the delivery of all of
the documents, items, certificates and instruments described below, all of
which documents, items, certificates and instruments must be in form and
substance satisfactory to BLLE, unless any such condition is waived by BLLE at
the Closing.  The Closing of the transactions contemplated by this Agreement
will be deemed to mean a waiver of all conditions to Closing.

                 (a)      Representations and Warranties.  The representations
and warranties of the Stockholders and Somerset set forth in this Agreement
will be true, correct and complete in all respects as of the Closing Date, as
though made on and as of the Closing Date. The representations and warranties of
the Stockholders and Somerset in this Agreement, subject to any supplement to
the Disclosure Schedules made pursuant to Section 5.7 of this Agreement, will be
true, correct and complete in all material respects as of the date hereof and as
of the

                                      -15-

<PAGE>   20

Closing Date, as though made on and as of such dates and the Stockholders and
Somerset will each have delivered to BLLE a certificate dated as of the Closing
Date, to the effect that the representations and warranties made by the
Stockholders and Somerset in this Agreement are true and correct, or if they
are not true and correct, including a description of the extent to which they
are no longer true and correct.

                 (b)      Supplement to Disclosure Schedules.  Any additional
disclosures made in the supplemental Disclosure Schedules of the Stockholders
and Somerset made pursuant to Section 5.7 of this Agreement will be acceptable
to BLLE in its sole discretion.

                 (c)      Performance.  All of the covenants and obligations
that the Stockholders and Somerset are required to perform or to comply with
pursuant to this Agreement at or prior to the Closing (considered
collectively), and each of these covenants and obligations (considered
individually), must have been performed and complied with in all material
respects.  The Stockholders and Somerset must have delivered each of the
documents required to be delivered by it pursuant to this Agreement and any
other documents reasonably requested by the Stockholders or Somerset and all
such documents are satisfactory to BLLE.

                 (d)      [Intentionally Omitted].

                 (e)      Secretary's Certificate - Somerset.  BLLE will have
received: (i) a certificate of the Secretary or Assistant Secretary of Somerset
attaching (a) a copy of Somerset's certificate of incorporation, as amended
through the Closing Date certified by the Secretary of State of the State of
Connecticut, (b) a true and correct copy of Somerset's bylaws, as amended and
(c) true and correct copies of resolutions of Somerset's board of directors and
stockholders authorizing this Agreement and the transactions contemplated
herein; and (ii) a certificate of the Secretary or Assistant Secretary of
Somerset as to the incumbency and signatures of the officers of Somerset
executing this Agreement and  the Transaction Documents executed by Somerset on
the Closing Date as contemplated by this Agreement.

                 (f)      Secretary's Certificate - MFC.  BLLE will have
received: (i) a certificate of the Secretary or Assistant Secretary of MFC
attaching true and correct copies of resolutions of MFC's board of directors
authorizing this Agreement and the transactions contemplated herein; and (ii) a
certificate of the Secretary or Assistant Secretary of MFC as to the incumbency
and signatures of the officers of MFC executing this Agreement and the
Transaction Documents executed by MFC on the Closing Date as contemplated by
this Agreement.

                 (g)      Transfer of Certificates; Release of Liens.  BLLE
will have received the certificates representing the issued and outstanding
Somerset Stock, duly endorsed in blank (or accompanied by duly executed stock
powers duly endorsed in blank), in each case in proper form for transfer, with
signatures guaranteed, and, if applicable, with all stock transfer and any
other required documentary stamps affixed thereto or appropriate instructions
or agreements from the Stockholders to allow the shares of Somerset Stock to be
legally and beneficially transferred into the name of BLLE. BLLE will receive
evidence to its satisfaction that any liens or encumbrances on the Somerset
Stock have been released as of the Closing Date.

                                      -16-

<PAGE>   21

                 (h)      Financing.  BLLE will have received evidence from
BLLE's deposit agent for the Financing (as defined in Section 5.2) that (i) it
is holding signed subscription agreements from offerees for at least 1,000,000
"Units" (as defined in Section 5.2) and at least $5,000,000 in readily
available funds from such offerees, less any commissions, fees, and other costs
incurred by BLLE in connection with the Financing, (ii) any applicable periods
for the offerees' voluntary withdrawal from the Financing have expired, and
(iii) there are appropriate instructions in effect so that, immediately after
the Closing Date, BLLE will receive net proceeds from the Financing of at least
$5,000,000, less all costs and expenses incurred by BLLE in connection with the
Financing, including attorneys' fees, deposit agent fees and placement fees.

                 (i)      Regulatory and Third-Party Consents.  Somerset and
its Subsidiaries will have obtained prior written approval of the transfer of
ownership and the other transactions contemplated by this Agreement from all
applicable regulatory and/or compliance agencies or parties, including but not
limited to the NASD and all other third-party consents and approvals required
for Somerset or its Subsidiaries to consummate the transactions contemplated by
this Agreement.

                 (j)      No Action.  No suit, action, or proceeding will be
pending or threatened before any governmental or regulatory authority wherein
an unfavorable judgment, order, decree, stipulation, injunction or charge would
(i) prevent consummation of any of the transactions contemplated by this
Agreement as reasonably determined by BLLE; (ii) cause any of the transactions
contemplated by this Agreement to be rescinded following consummation; or (iii)
adversely affect the right of BLLE to own, operate or control the business or
assets of Somerset.

                 (k)      No Material Adverse Change.  No material adverse
change in the business, operations, properties, prospects, assets, or condition
of Somerset or its Subsidiaries will have taken place since the date of the
Somerset Financial Statements, and no event will have occurred or circumstance
arise that may result in such a material adverse change.

                 (l)      Employment Agreement.  BLLE, Somerset, or one of
Somerset's Subsidiaries will have entered into an employment agreement with
each of Douglas Toth, Nicholas Thompson, William E. Schloth, and Harry Bloch,
in substantially the form of Exhibit A attached to this Agreement (the
"Employment Agreement") and otherwise on terms agreeable to BLLE.

                 (m)      Stock Restriction Agreement.  Each of the Individual
Stockholders and BLLE will have executed the Stock Restriction Agreement in
substantially the form of Exhibit B attached to this Agreement.

                 (n)      Opinion of Counsel.  Somerset will furnish BLLE with
an opinion of counsel, including local counsel as appropriate, dated as of the
Closing Date, providing in substance the opinions contained in the legal
opinion form attached to this Agreement as Exhibit C.

                                      -17-

<PAGE>   22

                 (o)      Post Closing Directors and Resolutions.  The
Post-Closing Directors (as defined in Section 5.13) will have been identified
and/or approved by the relevant parties and duly appointed to BLLE's Board of
Directors as described in Section 5.13.  The Post-Closing Directors of BLLE
will execute the Closing Date Resolutions (as defined in Section 5.14).

                 (p)      Due Diligence Review.  BLLE will be satisfied in all
respects with its due diligence investigation of Somerset and its Subsidiaries.

                 (q)      Termination of Somerset Shareholders' Agreement;
Shareholder Loans.  BLLE will have received documentation to its satisfaction
evidencing (i) the termination of the Amended and Restated Shareholders
Agreement ("Shareholders Agreement") executed by the Stockholders and Somerset
on December 31, 1998, and (ii) that the loans from the Stockholders to Somerset
pursuant to the Shareholders Agreement have been converted to capital of
Somerset in a manner reasonably satisfactory to BLLE, provided that BLLE agrees
that $25,000 of the loan from William Schloth to Somerset is to survive
Closing.

         4.2     CONDITIONS PRECEDENT TO CLOSING BY THE STOCKHOLDERS.  The
Stockholders' obligation to consummate the transactions contemplated by this
Agreement is subject to the satisfaction of the conditions set forth below
and/or the delivery of all of the documents, items, certificates and
instruments described below, all of which documents, items, certificates and
instruments must be in form and substance satisfactory to the Stockholders,
unless such condition is waived by the Stockholders at the Closing. The Closing
of the transactions contemplated by this Agreement will be deemed to mean a
waiver of all conditions to Closing.

                 (a)      Representations and Warranties.  The representations
and warranties of BLLE set forth in this Agreement will be true, correct and
complete in all respects as of the Closing Date, as though made on and as of
the Closing Date. The representations and warranties of BLLE in this Agreement,
subject to any supplement to the Disclosure Schedules made pursuant to Section
5.7 of this Agreement, will be true, correct and complete in all material
respects as of the date hereof and as of the Closing Date, as though made on
and as of such dates and BLLE will have delivered to the Stockholders a
certificate dated the Closing Date, to the effect that the representations and
warranties made by BLLE in this Agreement are true and correct, or if they are
not true and correct, including a description of the extent to which they are
no longer true and correct.

                 (b)      Supplement to Disclosure Schedules.  Any additional
disclosures made in the supplemental Disclosure Schedules of BLLE made pursuant
to Section 5.7 of this Agreement will be acceptable to the Stockholders in
their sole discretion.

                 (c)      Performance.  All of the covenants and obligations
that BLLE is required to perform or to comply with pursuant to this Agreement
at or prior to the Closing (considered collectively), and each of these
covenants and obligations (considered individually), must have been performed
and complied with in all material respects.  BLLE must have delivered each of
the documents required to be delivered by it pursuant to this Agreement.

                                      -18-

<PAGE>   23
                 (d)      Secretary's Certificate.  The Stockholders will have
received (i) a certificate of the Secretary or Assistant Secretary of BLLE
attaching (a) a copy of BLLE's certificate of incorporation, as amended through
the Closing Date certified by the Secretary of State of the State of Delaware,
(b) a true and correct copy of BLLE's bylaws, as amended and (c) true and
correct copies of resolutions of BLLE's board of directors authorizing this
Agreement and the transactions contemplated herein; and (ii) a certificate of
the Secretary or Assistant Secretary of BLLE as to the incumbency and signatures
of the officers of BLLE executing this Agreement and any other Transaction
Documents executed by BLLE on the Closing Date as contemplated by this
Agreement.

                 (e)     Certificates for BLLE Stock.  The Stockholders will
have received the certificates representing the BLLE Stock, duly executed (or
accompanied by duly executed stock powers) or evidence that BLLE has given
written instructions to BLLE's transfer agent for the delivery of the
certificates to the Stockholders.

                 (f)     Financing.  The Stockholders will have received
evidence from BLLE's deposit agent for the Financing (as defined in Section 5.2)
that (i) it is holding signed subscription agreements from offerees for at least
1,000,000 "Units," (as defined in Section 5.2) and at least $5,000,000 in
readily available funds from such offerees, less all costs and expenses incurred
in connection with the Financing, (ii) any applicable periods for the offerees'
voluntary withdrawal from the Financing have expired, and (iii) there are
appropriate instructions in effect so that, immediately after the Closing Date,
BLLE will receive net proceeds from the Financing of at least $5,000,000, less
all costs and expenses incurred by BLLE in connection with the Financing,
including attorneys' fees, deposit agent fees and placement fees.

                 (g)      No Action.  No suit, action, or proceeding will be
pending or threatened before any governmental or regulatory authority wherein an
unfavorable judgment, order, decree, stipulation, injunction or charge would (i)
prevent consummation of any of the transactions contemplated by this Agreement
as reasonably determined by the Stockholders; (ii) cause any of the transactions
contemplated by this Agreement to be rescinded following consummation; or (iii)
adversely affect the right of BLLE to own, operate or control the business or
assets of BLLE.

                 (h)      Opinion of Counsel.  BLLE will furnish the
Stockholders with an opinion of its counsel, dated as of the Closing Date, in
substantially the form of Exhibit D attached to this Agreement.

                 (i)      Post Closing Directors and Resolutions.  The
Post-Closing Directors (as defined in Section 5.13) will have been identified
and/or approved by the relevant parties and duly appointed to BLLE's Board of
Directors as described in Section 5.13.  The Post-Closing Directors of BLLE
will execute the Closing Date Resolutions (as defined in Section 5.14).

                 (j)      Registration Rights Agreement.  The Stockholders and
BLLE, will have executed the Registration Rights Agreement, to be effective as
of the Closing Date, in substantially the form attached as Exhibit E to this
agreement.

                                      -19-

<PAGE>   24
                 (k)      Reporting Company.  BLLE will have taken all actions
necessary to become a company filing annual, quarterly, and periodic reports
under the Securities and Exchange Act of 1934, as amended, and to maintain the
reporting of trades in the common stock on the OTC Bulletin Board, a service
maintained by the NASD, including the satisfaction of the requirements and
conditions of NASD Marketplace Rule 6530.

                 (l)      Due Diligence Review.  The Stockholders will be
reasonably satisfied in all respects with their due diligence investigation of
BLLE.

                                   SECTION 5
                      ADDITIONAL COVENANTS OF THE PARTIES

         5.1   WORKING CAPITAL.  The parties agree that prior to the Closing
Date, Somerset may raise working capital, in the form of fully subordinated
additional borrowings on terms reasonably acceptable to BLLE (collectively,
"Working Capital Loan"), in an aggregate amount of up to Five Hundred Thousand
Dollars ($500,000.00), including those amounts of working capital previously
borrowed from MFC pursuant to the Prime Rate Subordinated Debentures dated June
16, 1999 and July 28, 1999.  A majority of the Working Capital Loan proceeds
will be contributed by Somerset as permanent additional paid in capital to
Somerset's wholly owned broker-dealer Subsidiary, Somerset Financial, in a
manner consistent with regulatory treatment of such contribution as regulatory
capital.  Upon the completion of Closing, the Working Capital Loan will be
assumed by BLLE, and BLLE agrees that the Working Capital Loan will be
immediately payable after Closing in accordance with its terms.   Repayment of
the Working Capital Loan is anticipated to be made from proceeds of the
Financing (defined in Section 5.2) or other sources, and in no event will BLLE
look to Somerset Financial for repayment.

         5.2   ADDITIONAL FINANCING.  BLLE has engaged MFC Merchant Bank S.A. in
order to raise working capital, upon terms mutually agreeable to the parties
(the "Financing"), for an amount no less than Five Million Dollars
($5,000,000.00), and no more than Ten Million Dollars ($10,000,000.00), less the
reasonable costs and expenses incurred in obtaining such Financing, through the
private placement of no less than 1,000,000 Units (as defined below) and no more
than 2,000,000 Units, at Five Dollars ($5.00) per Unit, which Units are to be
issued upon the completion of Closing.  As used in this Agreement, unless
otherwise agreed upon by the Stockholders and BLLE, a "Unit" means one share of
BLLE Stock and one warrant for the purchase of one additional share of BLLE
Stock for the price of Ten Dollars ($10.00) per share, which warrant must be
exercised within one year.

         5.3   ASSUMPTION OF LEASE OBLIGATIONS; LEASEHOLD IMPROVEMENT LOAN. The
parties agree that BLLE intends to assume, either by itself or through a
subsidiary, subject to the consent of the applicable landlord or lender, the
obligations of the Stockholders for (i) the commercial office lease for
Somerset's office located in Princeton, New Jersey (the "Princeton Lease"), (ii)
that certain loan for leasehold improvements ("Leasehold Loan") to Somerset's
Princeton, New Jersey office with a remaining balance of approximately
Eighty-Five Thousand Dollars ($85,000.00), and (iii) any other office leases of
Somerset as determined by BLLE. To the extent that the lender does not allow for
the assumption and release of the Stockholders' obligations under the Leasehold
Loan, the Leasehold Loan will be repaid immediately after Closing.

                                      -20-

<PAGE>   25

         5.4     TRANSFER AND RELEASE OF SUBSIDIARY INTEREST.  Although no
operating agreement has been prepared for Somerset Investment, due to
Connecticut law requiring that each limited liability company have at least two
members, the ownership interests of Somerset Investment were stated on its 1998
federal income tax returns as follows: 96.75% owned by Somerset; 3.25% owned by
William Schloth.  Accordingly, William Schloth agrees to transfer his
membership interest in Somerset Investment to BLLE or BLLE's designee at
Closing or as soon as practicable thereafter, and to cooperate with BLLE to
effect such transfer.

         5.5     REGISTRATION OF BLLE STOCK.  As detailed in the Registration
Rights Agreement, BLLE agrees to use its best efforts to file a registration
statement for the BLLE Stock with the Securities and Exchange Commission within
180 days of Closing, and to diligently pursue the registration of the BLLE
Stock and any other equity securities of BLLE as determined by BLLE's board of
directors.

         5.6     ACCESS AND INVESTIGATION.

                 (a)  Between the date of this Agreement and the Closing Date,
the Stockholders and Somerset will, and will cause their respective
representatives to, (i) afford BLLE and its representatives access to their
personnel, properties, contracts, books and records, and other documents and
data, as reasonably requested by BLLE; (ii) furnish BLLE and its
representatives with copies of all such contracts, books and records, and other
existing documents and data as BLLE may reasonably request in connection with
the transaction contemplated by this Agreement; and (iii) furnish BLLE and its
representatives with such additional financial, operating, and other data and
information as the other may reasonably request.  With the prior consent of
Somerset, which consent will not be unreasonably withheld, BLLE and its
respective representatives, may communicate in connection with their
examination of Somerset with any person having business dealings with Somerset.
All of such access, investigation and communication by BLLE and its
representatives will be conducted after reasonable advance notice and in a
manner designed not to interfere unduly with the normal business operations of
the Stockholders or Somerset.  Somerset will provide BLLE with complete copies
of all material contracts and other relevant information on a timely basis in
order to keep BLLE fully informed of the status of Somerset's business and
operations.

                 (b)  Between the date of this Agreement and the Closing Date,
BLLE will, and will cause its respective representatives to, (i) afford the
Stockholders and Somerset and their representatives access to its personnel,
properties, contracts, books and records, and other documents and data, as
reasonably requested by the Stockholders; (ii) furnish the Stockholders and
Somerset and their representatives with copies of all such contracts, books and
records, and other existing documents and data as the other may reasonably
request in connection with the transaction contemplated by this Agreement; and
(iii) furnish the Stockholders and Somerset and their representatives with such
additional financial, operating, and other data and information as the other
may reasonably request.  With the prior consent of BLLE, which consent will not
be unreasonably withheld, the Stockholders, Somerset, and their respective
representatives, may communicate in connection with their examination of BLLE
with any person having business dealings with BLLE.  All of such access,
investigation and communication by each party and its

                                      -21-

<PAGE>   26

representatives will be conducted after reasonable advance notice and in a
manner designed not to interfere unduly with the normal business operations of
BLLE.

         5.7     CONFIDENTIALITY. Between the date of this Agreement and for a
period of two years following the Closing Date, the Stockholders, Somerset, and
BLLE will maintain in confidence, and will cause the directors, officers,
employees, agents, and advisors of Somerset and BLLE to maintain in confidence,
and not use to the detriment of another party any written, oral, or other
information obtained in confidence ("Confidential Information") from another
party in connection with this Agreement or the transactions contemplated
hereby, unless (a) such information is already known to such party or to others
not bound by a duty of confidentiality or such information becomes publicly
available through no fault of such party, (b) the use of such information is
necessary or appropriate in making any filing or obtaining any consent or
approval required for the consummation of the transaction contemplated by this
Agreement, (c) the furnishing or use of such information is required by legal
proceedings provided that the party making disclosure provides reasonable
advance notice to the other party, or (d) the furnishing of such information is
to professional advisors under a duty of confidentiality, as necessary to
consummate the transactions contemplated by this Agreement.  The Stockholders,
Somerset and BLLE agree that the Confidential Information will be used solely
for the purposes of evaluating the other parties hereto in connection with the
transactions contemplated in connection with this Agreement and that such
information will not be used or disclosed other than in furtherance of such
purpose under the terms of this Agreement. In the event that this Agreement is
terminated, then each of the parties agrees to promptly return any Confidential
Information belonging to the other party.

         5.8     PUBLIC ANNOUNCEMENTS.  The Stockholders and BLLE agree that
they will not make any public announcements relating to this Agreement or the
transactions contemplated herein without the prior written consent of the other
party, except as may be required upon the written advice of counsel to comply
with applicable laws or regulatory requirements after consulting with the other
party hereto and seeking their consent to such announcement.

         5.9     NOTIFICATION.  Between the date of this Agreement and the
Closing Date, each of the parties to this Agreement will promptly notify the
other parties in writing if it becomes aware of any fact or condition that
causes or constitutes a material breach of any of its representations and
warranties as of the date of this Agreement, if it becomes aware of the
occurrence after the date of this Agreement of any fact or condition that would
cause or constitute a material breach of any such representation or warranty
had such representation or warranty been made as of the time of occurrence or
discovery of such fact or condition. Should any such fact or condition require
any change in the Disclosure Schedules relating to such party, such party will
promptly deliver to the other parties a supplement to the Disclosure Schedules
specifying such change.  During the same period, each party will promptly
notify the other parties of the occurrence of any material breach of any of its
covenant in this Agreement or of the occurrence of any event that may make the
satisfaction of such conditions impossible or unlikely.

         5.10    CONDUCT OF SOMERSET PRIOR TO CLOSING.  From the date of this
Agreement to the Closing Date or the earlier termination of this Agreement, the
Stockholders and Somerset agree that Somerset and each of its Subsidiaries will
(i) conduct its business only in a normal and

                                      -22-

<PAGE>   27

ordinary course and in substantially the same manner as historically conducted,
(ii) use its best efforts to preserve intact the business organization and
goodwill of Somerset and each of its Subsidiaries and maintain the
relationships of persons having business relationship with Somerset, (iii) make
no change in its Board of Directors or senior management without the approval
of BLLE, (iv) keep BLLE advised of developments in its business and of any
significant decisions concerning the operation of its business, (v) not issue
any additional shares of Somerset Stock or any other class of stock, securities
convertible into common stock or any other class of common stock, or issue or
grant any option, warrants or rights concerning the same, for consideration or
otherwise or issue any other securities however denominated, (vi) not enter
into or make any change to any material agreement or incur any material
liabilities without BLLE's consent, (vii) not pay any bonuses or increases in
compensation to any director, officer or (except in the ordinary course of
business) any employee, and (viii) not incur any liability, obligation or
indebtedness other than trade payables in the ordinary course of business or
encumber or permit the encumbrance of any properties or assets of Somerset
(including the Working Capital Loan), without BLLE's consent; or (ix) not
dispose of or contract to dispose of any property or assets of Somerset except
in the ordinary course of business consistent with past practice.

         5.11    NON-COMPETITION.  As a material inducement to BLLE's entering
into this Agreement and its acquisition of Somerset, the Stockholders jointly
and severally agree that for a period of eighteen months following the Closing
Date, without the prior written consent of BLLE, none of the Stockholders will,
as a principal, agent, or employee, or through any person, company,
partnership, association or other entity:

                (a)       Employ, engage or seek to employ or engage any person
who is employed or engaged by Somerset or BLLE; or

                (b)       Cause or attempt to cause any supplier, customer,
client, employee, consultant, officer, director or person having a business
relationship with Somerset or BLLE to terminate or materially reduce its
relationship with either Somerset or BLLE.

                (c)       participate or engage in (other than through the
ownership of 5% or less of any class of securities registered under the
Securities Exchange Act of 1934, as amended) or assist, financially or
otherwise any person who participates or who is engaged in, any business,
wherever located, that competes with the business or activities of Somerset or
its Subsidiaries, including but not limited to the activities of investment
advising, investment banking, selling of securities or other equity
instruments, and other usual and customary broker/dealer activities or any
activities actively planned by Somerset.

The parties recognize that the law and public policies of the various states of
the United States may differ as to the validity and enforceability of covenants
similar to those set forth in this Section 5.11.  It is the intention of the
parties that the provisions of this Section 5.11 be enforced to the fullest
extent permissible under the law and policies of each jurisdiction in which
enforcement may be sought, and that the unenforceability (or the modification
to conform to such laws or policies) of any provisions of this section will not
render unenforceable, or impair, the remainder of the provisions of this
section.  The parties further agree that any remedy at law

                                      -23-

<PAGE>   28

for any violation of the provisions of this section would be inadequate, and
the Stockholders hereby consent to the granting by any court of an injunction
or other equitable relief without the necessity of actual monetary loss being
provided, in order that the breach or threatened breach of such provisions may
be effectively restrained. Notwithstanding the forgoing, in the event that
Douglas Toth, Nicholas Thompson, or William Schloth terminates his respective
Employment Agreement for "Good Reason", or his Employment Agreement is
terminated by BLLE "Without Cause" (as those terms are defined in the
respective Employment Agreement), the restrictions contained in Section
15.11(c) will be deemed void and of no further force or effect for the
Stockholder so terminated. Notwithstanding the forgoing, nothing in this
Section 15.11 will be interpreted to restrict the right of MFC to (i) conduct
its business as currently conducted as of the date of this Agreement, or (ii)
expand its operations outside of the United States within the scope of its
currently conducted business.

         5.12    EMPLOYMENT AGREEMENTS.  The Stockholders, Somerset, and BLLE
agree to cooperate in the transition of Somerset's employees from their
employment with Somerset to BLLE, and to in good faith cooperate in order to
secure those contracts reasonably necessary for the continuing business
operation of Somerset, which contracts will include, among other things,
employment agreements with those executives and employees reasonably identified
by BLLE at or prior to Closing.

         5.13    CLASSIFIED BOARD OF DIRECTORS; COMPOSITION OF BOARD; STOCK
OPTION PLAN.  The parties desire to implement a classified board of directors
for BLLE after Closing, and have agreed to effect certain interim steps toward
the approval of a classified board. Prior to the Closing Date, BLLE's Board of
Directors will appoint certain director nominees such that the board will
consist of seven members (the "Post-Closing Directors").  The Post-Closing
Directors will consist of: three persons nominated by the Stockholders; two
persons nominated by the investor in the Financing, ValorInvest Ltd.; and, two
persons nominated pursuant to the mutual agreement of the Stockholders and
ValorInvest Ltd. to serve as independent directors.  As of the date of this
Agreement, the Stockholders have nominated Douglas Toth, Nicholas Thompson, and
James M. Carter to serve as Post-Closing Directors.  The parties have
identified the independent directors to be Dennis C. Josifovich and John M.
Musacchio.

         5.14    CLOSING DATE RESOLUTIONS.  BLLE and Somerset mutually agree to
prepare written consent resolutions to be executed and adopted by the
Post-Closing Directors as of the Closing Date (the "Closing Date Resolutions")
in order to, among other things:

                 (a)  subject to shareholder approval at the Post-Closing
Annual Meeting (defined in Section 5.15), adopt a classified board of directors
for BLLE, establishing staggered terms for each class of directors, pursuant to
which the Post-Closing Directors nominated by the Stockholders will serve for a
term of three years each, the Post-Closing Directors nominated by ValorInvest
Ltd. will serve for a term of two years each, and those Post-Closing Directors
nominated as independent directors will serve for a term of one year each;

                 (b)  authorize the issuance of those Units sold by BLLE
pursuant to the Financing;

                                      -24-

<PAGE>   29
                 (c)  implement certain committees of the Post-Closing
Directors, including an audit committee and compensation committee to be made
up of at least one Post-Closing Director nominated by the Stockholders, and one
Post-Closing Director nominated by ValorInvest Ltd.;

                 (d)  appoint officers to serve on behalf of BLLE; and

                 (e)  authorize the establishment of corporate bank accounts and
appoint  authorized signatories for such accounts.

         Each of the parties agrees to direct those Post-Closing Directors
which it nominated to execute and approve the Closing Date Resolutions.

         5.15    ANNUAL MEETING; AMENDED CERTIFICATE OF INCORPORATION.  BLLE
agrees to call an annual meeting of its shareholders ("Post-Closing Annual
Meeting") to be held on or before May 31, 2000, subject to adjournment and
subject to any delays imposed by the SEC or otherwise outside the reasonable
control of BLLE. At the Post-Closing Annual Meeting, the BLLE shareholders will
be asked to approve: (i) the classified board of directors structure approved
by the Post-Closing Directors; (ii) the election of the Post-Closing Directors
as appointed by BLLE's Board of Directors; (iii) the stock option plans adopted
by BLLE; (iv) an amended and restated certificate of incorporation of BLLE (the
"Amended Certificate of Incorporation"); and (v) such other matters as the
Post-Closing Directors deem appropriate.  The Amended Certificate of
Incorporation will be in a form approved by the Post-Closing Directors and
will: (i) change the name of BLLE to "Somerset Financial International, Inc.",
or some other name mutually agreeable to the parties; (ii) provide for the
classified board of directors structure; (iii) include certain anti-takeover
provisions appropriate for a public company; (iv) provide broader
indemnification protections for the officers and directors of BLLE; and (v)
contain such other provisions adopted by the Post-Closing Directors.

         5.16    STEERING COMMITTEE.  The Stockholders and BLLE agree to form
an ad hoc steering committee ("Steering Committee") consisting of (i) William
E. Schloth and (ii) James M. Carter or John M. Musacchio, who will serve,
subject to the direction and discretion of the Stockholders and BLLE, in order
to effectuate the transactions contemplated by this Agreement.  The Steering
Committee will advise the parties on the Financing, the obtaining of regulatory
approval, and the facilitation of the other transactions contemplated by this
Agreement.  Upon the completion of Closing, the Steering Committee will
automatically be dissolved.

                                   SECTION 6
                                  TERMINATION

         6.1     TERMINATION.  This Agreement may be terminated at any time
prior to the Closing Date by:

                 (a)      mutual agreement of the Stockholders and BLLE;

                                      -25-

<PAGE>   30

                 (b)      the Stockholders, if there has been a breach by BLLE
of any material representation, warranty, covenant or agreement set forth in
this Agreement on the part of BLLE that is not cured, to the reasonable
satisfaction of the Stockholders, within 10 business days after notice of such
breach is given by the Stockholders (except that no cure period will be
provided for a breach by BLLE that by its nature cannot be cured);

                 (c)      BLLE, if there has been a breach by the Stockholders
or Somerset of any material representation, warranty, covenant or agreement set
forth in this Agreement on the part of the Stockholders or Somerset that is not
cured by the breaching party, to the reasonable satisfaction of BLLE, within 10
business days after notice of such breach is given by BLLE (except that no cure
period will be provided for a breach by the Stockholders or Somerset that by
its nature cannot be cured);

                 (d)      the Stockholders or BLLE, upon notice to the other,
if the transactions contemplated by this Agreement have not been consummated
prior to December 18, 1999, unless the parties agree to extend such date; or

                 (e)      the Stockholders or BLLE, upon notice to the other,
if any permanent injunction or other order of a governmental entity of
competent authority preventing the consummation of the transactions
contemplated by this Agreement has become final and non-appealable.

         6.2     EFFECT OF TERMINATION.  In the event of the termination of
this Agreement as provided in Section 6.1, this Agreement will be of no further
force or effect; provided, however, that no termination of this Agreement will
relieve any party of liability for any breach of this Agreement that is based on
a wrongful refusal or failure to perform any obligations or for any covenant
that by its nature survives termination of this Agreement.

                                   SECTION 7
                      INDEMNIFICATION; REMEDIES; SURVIVAL

         7.1     CERTAIN DEFINITIONS.  For the purposes of this Section 7, the
terms "Loss" and "Losses" means any and all demands, claims, actions or causes
of action, assessments, losses, damages, liabilities, costs, and expenses,
including without limitation, interest, penalties, fines and reasonable
attorneys', accountants' and other professional fees and expenses, but
excluding any indirect, consequential or punitive damages suffered by BLLE, the
Stockholders, Somerset, or Somerset's Subsidiaries including damages for lost
profits or lost business opportunities.

         7.2     AGREEMENT OF THE STOCKHOLDERS AND SOMERSET TO INDEMNIFY BLLE.
Subject to the terms and conditions of this Section 7.2, the Stockholders and
Somerset will jointly and severally indemnify, defend, and hold harmless BLLE,
its officers, directors, shareholders, employees and affiliates from, against,
and in respect of any and all Losses asserted against, relating to, imposed
upon, or incurred by BLLE by reason of, resulting from, based upon or arising
out of:

                                      -26-

<PAGE>   31

                 (a)      the breach by the Stockholders or Somerset of any
representation or warranty of the Stockholders or Somerset contained in or made
pursuant to this Agreement, any Transaction Document or certificate or
instrument delivered pursuant to this Agreement;

                 (b)      the breach or partial breach by the Stockholders or
Somerset of any covenant or agreement of the Stockholders or Somerset made in
or pursuant to this Agreement, or any Transaction Document or other certificate
or instrument delivered pursuant to this Agreement; and

                 (c)      the failure or refusal of the Stockholders or
Somerset to defend any claim for which BLLE is indemnified pursuant to this
Section 7.2.

         7.3     AGREEMENT OF BLLE TO INDEMNIFY THE STOCKHOLDERS.  Subject to
the terms and conditions of this Section 7.3, BLLE will indemnify, defend, and
hold harmless the Stockholders from, against, for, and in respect of any and
all Losses asserted against, relating to, imposed upon, or incurred by the
Stockholders by reason of, resulting from, based upon or arising out of:

                 (a)      the breach by BLLE of any representation or warranty
of BLLE contained in or made pursuant to this Agreement, any Transaction
Document or certificate or instrument delivered pursuant to this Agreement;

                 (b)      the breach or partial breach by BLLE of any covenant
or agreement of BLLE made in or pursuant to this Agreement, or any Transaction
Document or other certificate or instrument delivered pursuant to this
Agreement; and

                 (c)      the failure or refusal of BLLE to defend any claim for
which the Stockholders are indemnified pursuant to this Section 7.3.

         7.4     PROCEDURES FOR INDEMNIFICATION.  As used herein, the term
"Indemnitor" means the party against whom indemnity hereunder is sought, and
the term "Indemnitee" means the party seeking indemnification hereunder.

                 (a)      A claim for indemnification hereunder
("Indemnification Claim") must be made by Indemnitee by delivery of a written
notice to Indemnitor requesting indemnification and specifying the basis on
which indemnification is sought and the amount of asserted Losses and, in the
case of a Third Party Claim (as defined in Section 7.5), containing such other
information as Indemnitee has concerning such Third Party Claim.

                 (b)      If the Indemnification Claim involves a Third Party
Claim, the procedures set forth in Section 7.5 hereof must be observed by
Indemnitee and Indemnitor.

                 (c)      If the Indemnification Claim involves a matter other
than a Third Party Claim, Indemnitor will have 30 business days to object to
such Indemnification Claim by delivery of a written notice of such objection to
Indemnitee specifying in reasonable detail the basis for such objection.
Failure to timely so object will constitute acceptance of the Indemnification
Claim by Indemnitor and the Indemnification Claim will be paid in accordance

                                      -27-

<PAGE>   32

with Section 7.4(d).  If an objection is timely interposed by Indemnitor and
the dispute is not resolved within 30 business days from the date Indemnitee
receives such objection, such dispute may be resolved by arbitration in
accordance with the rules and procedures of the American Arbitration
Association.

                 (d)      Upon a final determination of the amount of an
Indemnification Claim, whether by agreement between Indemnitor and Indemnitee
or by an arbitration award, Indemnitor will pay the amount of such finally
determined Indemnification Claim within ten days of the date such amount is
determined.

         7.5     DEFENSE OF THIRD PARTY CLAIMS.  Should any claim be made, or
suit or proceeding (including, without limitation, a binding arbitration or an
audit by any taxing authority) be instituted by a third party against
Indemnitee which, if prosecuted successfully, would be a matter for which
Indemnitee is entitled to indemnification under this Agreement (a "Third Party
Claim"), the obligations and liabilities of the parties hereunder with respect
to such Third Party Claim will be subject to the following terms and
conditions:

                 (a)      Indemnitee must give Indemnitor written notice of any
such claim promptly after receipt by Indemnitee of actual notice thereof, and
Indemnitor will undertake the defense thereof by representatives of its own
choosing reasonably acceptable to Indemnitee.  If Indemnitor undertakes the
defense of such claim, Indemnitor will have the exclusive right to defend,
contest and litigate the Third Party Claim, and the exclusive right, subject to
the terms of Section 7.6 below, in its discretion, in good faith, and upon the
advice of counsel, to settle any such matter, either before or after the
initiation of litigation, at such time and upon such terms as its deems fair
and reasonable; provided that at least 10 days prior written notice of the
intended settlement must be provided to Indemnitee.  If, however, Indemnitor
fails or refuses to undertake the defense of such claim within 30 business days
after written notice of such claim has been given to Indemnitor by Indemnitee,
Indemnitee will have the right to undertake the defense, compromise and,
subject to Section 7.7, settlement of such claim with counsel of its own
choosing.  In the circumstances described in the preceding sentence, Indemnitee
will, promptly upon its assumption of the defense of such claim, make an
Indemnification Claim as specified in Section 7.4(a).

                 (b)      Indemnitee and Indemnitor will cooperate with each
other in all reasonable respects in connection with the defense of any Third
Party Claim, including making available records relating to such claim and
furnishing, without expense to Indemnitor, management employees of Indemnitee as
may be reasonably necessary for the preparation of the defense of any such claim
or for testimony as witness in any proceeding relating to such claim.

         7.6     SETTLEMENT OF THIRD PARTY CLAIMS.   In connection with any
settlement of a Third Party Claim negotiated by Indemnitor, Indemnitee will not
be required to take any of the following actions:

                 (a)      enter into any settlement that does not include the
delivery by the claimant or plaintiff to Indemnitee of an unconditional release
from all liability with respect to the Third Party Claim.

                                      -28-

<PAGE>   33

                 (b)      enter into any settlement that requires Indemnitee to
take any affirmative action as a condition of the settlement.

                 (c)      consent to the entry of judgment that does not include
a full dismissal of the litigation or proceedings against Indemnitee with
prejudice.

         7.7     LIMITATIONS OF LIABILITY

                 (a)      Neither the Stockholders nor Somerset will be deemed
liable under Section 7.2 and BLLE will not be deemed liable under Section 7.3
until the aggregate amount of all indemnification claims under such section
exceeds Twenty Thousand Dollars ($20,000.00).

                 (b)      No claims for indemnification under Sections 7.2 or
7.3 will be made after the third anniversary of the Closing Date; provided,
however, that such time limit will not apply to any Tax claims.

         7.8     SURVIVAL OF REPRESENTATIONS AND WARRANTIES  The
representations, warranties and covenants made by the parties will survive the
Closing for a period of three years from the Closing Date; provided, however,
that representations and warranties relating to Taxes will survive for a period
of five years after the Closing Date or until the expiration date of the
statute of limitations applicable to such Tax liability or the final
determination of any such tax liability, including the final administrative or
judicial determination thereof, whichever occurs first.  Upon the completion of
Closing, the representations and warranties of Somerset will be null and void.

                                   SECTION 8
                            MISCELLANEOUS PROVISIONS

         8.1     APPOINTMENT OF STOCKHOLDERS REPRESENTATIVE.  Any action or
remedy of the Stockholders under this Agreement, including without limitation,
a request for arbitration or indemnification, must be exercised jointly by the
Stockholders. For the purposes of this Agreement, the Stockholders appoint
Douglas Toth (or such other person as all of the Stockholders shall notify in
writing) as the designated representative of the Stockholders, authorizing him
to accept any notice for the Stockholders under Section 8.9 of this Agreement,
and, with the exception of executing any of the Transaction Documents, to act
on behalf of the Stockholders for all matters arising after the date of this
Agreement.

         8.2     EFFECTIVENESS OF REPRESENTATIONS.  Each party is entitled to
rely on the representations, warranties and agreements of each of the other
parties and all such representation, warranties and agreement will be effective
regardless of any investigation that any party has undertaken or failed to
undertake.

         8.3     ACKNOWLEDGMENT OF PLACEMENT AGENT AND DEPOSIT AGENT
DESIGNATION.  The Stockholders and BLLE acknowledge and agree that MFC Merchant
Bank S.A. will act as the placement agent for the Financing pursuant to the
Placement Agreement executed by BLLE and

                                      -29-

<PAGE>   34

MFC Merchant Bank S.A. on October 17, 1999.  The Stockholders and BLLE further
agree that MFC Merchant Bank S.A will act as the Deposit Agent for the
Financing pursuant to the Investor Issuance Deposit Agreement executed on
October 17, 1999.

         8.4     FURTHER ASSURANCES.  Each of the parties hereto will cooperate
with the others and execute and deliver to the other parties hereto such other
instruments and documents and take such other actions as may be reasonably
requested from time to time by any other party hereto as necessary to carry
out, evidence, and confirm the intended purposes of this Agreement.

         8.5     AMENDMENT.  This Agreement may not be amended except by an
instrument in writing signed by each of the parties.

         8.6     EXPENSES.  Each party to this Agreement will bear its
respective expenses incurred in connection with the preparation, execution, and
performance of this Agreement and the transactions contemplated hereby,
including all fees and expenses of agents, representatives, counsel, and
accountants.

         8.7     ENTIRE AGREEMENT.  This Agreement, the exhibits, schedules
attached hereto and the other Transaction Documents contain the entire
agreement between the parties with respect to the subject matter hereof and
supersede all prior arrangements and understandings, both written and oral,
expressed or implied, with respect thereto.  The Letter of Intent between
ValorInvest Ltd, Somerset, and the Stockholders dated June 18, 1999 as well as
any preceding correspondence or offers is expressly superseded and terminated
by this Agreement.

         8.8     SEVERABILITY.  It is the desire and intent of the parties that
the provisions of the Transaction Documents be enforced to the fullest extent
permissible under the law and public policies applied in each jurisdiction in
which enforcement is sought.  Accordingly, in the event that any provision of
the Transaction Documents would be held in any jurisdiction to be invalid,
prohibited or unenforceable for any reason, such provision, as to such
jurisdiction, will be ineffective, without invalidating the remaining
provisions of the Transaction Documents or affecting the validity or
enforceability of such provision in any other jurisdiction.  Notwithstanding
the foregoing, if such provision could be more narrowly construed so as not to
be invalid, prohibited or unenforceable in such jurisdiction, it will, as to
such jurisdiction, be so narrowly construed, without invalidating the remaining
provisions of the Transaction Documents or affecting the validity or
enforceability of such provision in any other jurisdiction.

         8.9     NOTICES.  All notices and other communications required or
permitted under to this Agreement must be in writing and will be deemed given
if sent by personal delivery, faxed with electronic confirmation of delivery,
nationally-recognized overnight courier or registered or certified mail (return
receipt requested), postage prepaid, to the parties at the following addresses
(or at such other address for a party as will be specified by like notice):

                                      -30-

<PAGE>   35

<TABLE>
<S>                                       <C>
         If to the Stockholders:           Mr. Douglas Toth
                                           c/o Somerset Financial Partners, Inc.
                                           349 Wall Street
                                           Princeton,  New Jersey
                                           Telephone:  (609) 430-1078
                                           Fax: (609) 430-1074

         With a copy (which will not constitute notice) to:

                                           MFC Bancorp Ltd.
                                           c/o Sangra Moller
                                           1900-700 West George Street
                                           Pacific Centre, PO Box 10345
                                           Vancouver, British Columbia V7Y 1G5
                                           Attention: Harjit Sangra
                                           Telephone: (604) 683-8286
                                           Fax: (604) 683-3205

         If to Somerset:                   Somerset Financial Partners, Inc.
                                           535 Connecticut Avenue, Suite 102
                                           Norwalk, Connecticut 06854
                                           Attention: William E. Schloth Director
                                           Telephone: (203) 838-5141
                                           Fax: (203) 838-5181

         With a copy (which will not constitute notice) to:

                                           MFC Bancorp Ltd.
                                           c/o Sangra Moller
                                           1900-700 West George Street
                                           Pacific Centre, PO Box 10345
                                           Vancouver, British Columbia V7Y 1G5
                                           Attention: Harjit Sangra
                                           Telephone: (604) 683-8286
                                           Fax: (604) 683-3205

         If to BLLE:                       Bullet Environmental Technologies, Inc.
                                           c/o Powell, Goldstein, Frazer & Murphy
                                           1001 Pennsylvania Avenue, N.W.
                                           Sixth Floor South
                                           Washington, D.C.  20004
                                           Attention: Susan J. Thomas, Esq.
                                           Telephone: (202) 624-7370
                                           Fax: (202) 624-7222
</TABLE>

                                      -31-

<PAGE>   36

All such notices and other communications will be deemed to have been received
(a) in the case of personal delivery, on the date of such delivery, (b) in the
case of a fax, when the party sending such fax has received electronic
confirmation of its delivery, (c) in the case of delivery by
nationally-recognized overnight courier, on the business day following dispatch
and (d) in the case of mailing, on the third business day following mailing.

         8.10    HEADINGS.  The headings contained in this Agreement are for
convenience purposes only and will not affect in any way the meaning or
interpretation of this Agreement.

         8.11    BENEFITS.  This Agreement is and will only be construed as for
the benefit of or enforceable by those persons party to this Agreement.

         8.12    ASSIGNMENT.  This Agreement may not be assigned (except by
operation of law) by any party without the consent of the other parties.

         8.13    GOVERNING LAW.  This Agreement will be governed by and
construed in accordance with the laws of the State of Delaware applicable to
contracts made and to be performed therein.

         8.14    ARBITRATION.  All disputes arising out of or in connection
with this Agreement, or in respect of any defined legal relationship associated
therewith or derived therefrom that are not amicably resolved by the parties
within a reasonable amount of time (each, a "Dispute") will be referred to and
finally resolved by arbitration under the Rules of the American Arbitration
Association ("AAA") under its Commercial Arbitration Rules, except where those
rules are supplemented or modified by the express terms of this section. The
parties agree that binding arbitration is the exclusive remedy for resolving
any Dispute.  The Stockholders or BLLE may initiate arbitration by sending
notice of their intention to arbitrate the Dispute to the other party, which
notice must be accompanied by a brief setting forth the nature of the Dispute
and the remedy sought, which brief may not exceed 25 typed pages (the
"Arbitration Notice").  The party initiating arbitration must also file at the
regional office of the AAA three copies of the Arbitration Notice and Brief and
the arbitration provision of this Agreement together with the required filing
fee. The named parties must file a responsive brief within 25 business days of
receipt of the Arbitration Notice and Brief, which responsive brief may not
exceed 25 typed pages. Any arbitration proceedings will be in Washington, D.C.
If the parties are able to agree on one arbitrator within 15 days of the date
the Arbitration Notice is filed with the AAA, the Dispute will be heard by that
arbitrator. If the parties are unable to agree on one arbitrator, then an
arbitrator will be selected from an impartial roster of arbitrators provided by
the AAA in accordance with the AAA rules. There will be no discovery permitted
by the parties in the arbitration proceedings provided that each party will be
permitted to take one oral deposition of the other party or unless otherwise
mutually agreed to by the parties. Each of the parties agrees to be bound by
Rule 30(b)(6) of the Federal Rules of Civil Procedures "Deposition of an
Organization," as amended from time to time or any successor rule. The
arbitrator will issue a decision within 60 days of his or her appointment. The
decision of the arbitrator must set forth in reasonable detail the reasoning
supporting the decision of the arbitrator. The decision rendered by the
arbitrator will be final and binding on the parties and judgment on the decision
rendered by the arbitrator may be

                                      -32-

<PAGE>   37

entered in any court having jurisdiction. Each party will pay its own costs and
expenses related to the arbitration procedures. This agreement to arbitrate is
specifically enforceable under the prevailing arbitration law and survives the
termination of this Agreement.

         8.15    CONSTRUCTION.  The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent,
and no rule of strict construction will be applied against any party.  Any
reference to any federal, state, local, or foreign statute or law will be
deemed also to refer to all rules and regulations promulgated thereunder,
unless the context requires otherwise.  The parties intend that each
representation, warranty, and covenant contained herein will have independent
significance.  If any party has breached any representation, warranty, or
covenant contained herein in any respect, the fact that there exists another
representation, warranty, or covenant relating to the same subject matter
(regardless of the relative levels of specificity) which the party has not
breached will not detract from or mitigate the fact that the party is in breach
of the first representation, warranty, or covenant.  Unless otherwise expressly
provided, as used in this Agreement, the word "including" does not limit the
preceding words.

         8.16    COUNTERPARTS.  This Agreement may be executed in one or more
counterparts, all of which will be considered one and the same agreement and
will become effective when one or more counterparts have been signed by each of
the parties and delivered to the other parties, it being understood that all
parties need not sign the same counterpart.

         8.17    FAX EXECUTION.  This Agreement may be executed by delivery of
executed signature pages by fax and such fax execution will be effective for
all purposes.

         8.18    SCHEDULES AND EXHIBITS.  The following schedules and exhibits
are attached to this Agreement and incorporated herein.

<TABLE>
<S>                                                <C>
                 Disclosure Schedule 1.2           Somerset Stock Ownership
                 Disclosure Schedule 2.4           Capitalization of Somerset
                 Disclosure Schedule 2.5           Somerset Subsidiaries and Restrictions
                 Disclosure Schedule 2.7           Actions and Proceedings
                 Disclosure Schedule 2.8           Compliance
                 Disclosure Schedule 2.9           Filings, Consents, and Approvals
                 Disclosure Schedule 2.11          Somerset Financial Statements
                 Disclosure Schedule 2.12          Bank Accounts
                 Disclosure Schedule 2.13          Undisclosed Liabilities
                 Disclosure Schedule 2.15          Absence of Changes and Events
                 Disclosure Schedule 2.16          Personal Property
                 Disclosure Schedule 2.17          Related Entities
                 Disclosure Schedule 2.18          Insurance
                 Disclosure Schedule 2.19          Labor and Employment
                 Disclosure Schedule 2.20          Benefit Plans
                 Disclosure Schedule 2.21          Intellectual Property
                 Disclosure Schedule 2.22          Real Property
                 Disclosure Schedule 2.23          Material Contracts and Transactions
                 Disclosure Schedule 2.26          Residences of Stockholders
</TABLE>

                                      -33-

<PAGE>   38
                 Exhibit A                 Employment Agreement - Form
                 Exhibit B                 Stock Restriction Agreement
                 Exhibit C                 Opinion of Counsel for Somerset
                 Exhibit D                 Opinion of Counsel for BLLE
                 Exhibit E                 Registration Rights Agreement

                                      -34-

<PAGE>   39

EXECUTED on November 15, 1999.

                          BLLE:

                                  BULLET ENVIRONMENTAL TECHNOLOGIES, INC.,
                                  A Delaware Corporation

                                  By:

                                           -------------------------------------
                                           G.W. Norman Wareham
                                           President

                          SOMERSET:

                                  SOMERSET FINANCIAL PARTNERS, INC.,
                                  A Connecticut Corporation

                                  By:
                                           -------------------------------------
                                           Douglas Toth,
                                           Managing Director

                          STOCKHOLDERS:

                                  -----------------------------------------
                                  DOUGLAS TOTH

                                  -----------------------------------------
                                  NICHOLAS THOMPSON

                                  -----------------------------------------
                                  WILLIAM E. SCHLOTH

                                  MFC BANCORP LTD

                                  By:      -------------------------------------
                                           Name:
                                           Title:
                                      -35-

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