Document:

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                                                                   EXHIBIT 10.10

                              FIRST AMENDMENT TO
                        RESEARCH AND LICENSE AGREEMENT

     THIS FIRST AMENDMENT TO RESEARCH AND LICENSE AGREEMENT (the "Amendment") is
made this 1st day of September, 1995, by and among SRI International, a
California nonprofit public benefit corporation ("SRI"), the David Sarnoff
Research Center (a wholly owned subsidiary of SRI), a Delaware corporation
("Sarnoff") and SolarCare Technologies Corporation, a Delaware corporation
("STC").

                             W I T N E S S E T H:

     WHEREAS,  SRI, Sarnoff and STC entered into that certain Research and
License Agreement dated April 26, 1995 (the "Agreement", initially capitalized
terms being used herein as defined therein, unless otherwise defined herein);
and

     WHEREAS, SRI, Sarnoff and STC desire to amend the Agreement, as provided
herein.

     NOW, THEREFORE, SRI, Sarnoff and STC, each intending to be legally bound
hereby, covenant and agree as follows:

     Section 1.  Amendments to Agreement.
                 -----------------------

          Sections 3.1 through 3.7 of the Agreement, effective as of the date
hereof, are hereby amended by deleting such Sections in their entirety and
substituting the following therefor:

          3.1  Conduct of Research.  During the Development Period each of
               -------------------
Sarnoff and SRI shall use their commercially reasonable efforts to conduct the
Development Program in accordance with the tasks set forth on Exhibit A (each, a
"Task" and, collectively, the "Tasks"), as such Exhibit may be amended, in
writing, from time to time by Task Orders (as such term is hereinafter defined).
Each Task shall describe in reasonably sufficient detail (a) the research
activities to be conducted and the objectives thereof, (b) the responsibilities
of the parties, the principal researchers (if any) and any specific resources
required to conduct the research activities, (c) the total funding and the
payment schedule therefor and (d) an estimated schedule for such activities.
Sarnoff and SRI shall conduct the Development Program in good scientific manner,
and in compliance in all material respects with all requirements of applicable
laws, rules
<PAGE>

and regulations. Because the research services to be performed are of an
advisory or experimental nature, Sarnoff and SRI do not warrant that the
Development Program, in whole or in part, will be successful or achieve the
objectives set forth on Exhibit A.

          3.1.1.  The Development Program to be performed by Licensors for STC
shall be administered by a Program Advisory Team (the "Program Advisory Team").
The Program Advisory Team shall consist of three members, with one person
representing each of SRI, Sarnoff and STC.  The Program Advisory Team shall
communicate, confer and/or meet from time to time at the request of any party.
The initial members of the Program Advisory Team shall be as follows:

     Person              Affiliation    Telephone         Facsimile
     ------              -----------    ---------         ---------

     Sam Niedbala        STC            (610) 822-1820    (610) 882-1830
     Howard Rivenburg    Sarnoff        (609) 734-        (609) 734-2323
     Luke Schneider      SRI            (415) 859-5051    (415) 859-2813

The members of the Program Advisory Term may be replaced, subject to the prior
approval of STC, which approval shall not be withheld unreasonably.  The role of
the Program Advisory Team shall be to facilitate communication among SRI,
Sarnoff and STC with respect to the conduct of the Development Program and to
plan for and administer Task Orders to maximize the opportunity for the
successful completion of Task Orders in the most efficient and cost effective
manner.  Specifically, the role of the Program Advisory Team shall include, but
shall not be limited to the following:  (i) identifying to STC areas of
necessary or desirable research for Task Orders (including the development of
Task Orders for the second year effort, as set forth in Section 3.3); (ii)
advising STC with respect to Task Order priorities; (iii) advising STC with
respect to the objectives, scope, methodology and specifications of each Task
Order; (iv) maximizing the opportunity for successful completion of Task Orders
by identifying the most appropriate personnel to implement a particular Task
Order and (v) overseeing the conduct and completion of each Task Order.
Notwithstanding the foregoing, the recommendations of the Program Advisory Team
shall be advisory only and STC shall specify which new Tasks to pursue and in
which order, the objectives, scope, methodology and specifications of each Task
Order, the selection of the personnel (and institution) to implement each Task
Order and the form, scope and manner of communicating and/or delivering the
interim and final results of each Task Order.  Except as set forth in Section
3.6, neither SRI nor Sarnoff shall charge or receive any compensation for the
administration of the Development Program.  On the basis of the foregoing, from
time to time during the term of the Development Period, (y) STC and Sarnoff may
mutually agree on the scope of new Tasks to be conducted by Sarnoff to be
included in the Development Program and/or (z) STC and SRI may mutually agree on
the scope of new Tasks to be conducted by SRI to be included in the Development
Program.

          3.1.2.  Each new Task shall be in writing ("Task Order") and shall
reference the Agreement and describe in reasonably sufficient detail (a) the
research activities to

                                      -2-
<PAGE>

be conducted and the objectives thereof, (b) the responsibilities of the
parties, the principal researchers (if any) and any specific resources required
to conduct the research activities, (c) the total funding and the payment
schedule therefor and (d) an estimated schedule for such activities.

          3.1.3.  STC and SRI or Sarnoff, as the case may be, shall execute a
copy of each mutually acceptable Task Order which thereafter shall be
incorporated in and made a part of this Agreement.

          3.1.4.  Upon receipt by Sarnoff or SRI, as the case may be, of a
fully-executed copy of the Task Order and any initial research payment required
for such Task, Sarnoff and/or SRI shall initiate each new Task under the
Development Program.

          3.1.5.  Licensors shall ensure that all of their respective employees
and independent contractors have executed and delivered binding agreements
agreeing to assign all intellectual property rights to Sarnoff or SRI, as the
case may be, and to promptly report the conception and reduction to practice of
all discoveries and inventions to the Sarnoff or SRI Intellectual Property
Office, as the case may be.

     3.2. Funding.  In consideration of the participation of Sarnoff and
          -------
SRI in the Development Program, STC agrees to pay to Sarnoff, on behalf of
Licensors, a research fee of Two Hundred Thousand ($200,000) for the work to be
performed during the first year of this Agreement (the "Year 1 Fee"). The Year 1
Fee shall be paid to Sarnoff, as set forth below. Licensors shall not incur
expenses in conducting the Development Program in excess of such total amount,
and STC shall have no obligation to reimburse Licensors for expenses incurred in
excess of such total amount, unless otherwise expressly agreed to in writing by
both parties. If it appears to Licensors that the Development Program to be
conducted during the first year of this Agreement cannot be completed without
incurring expenses in excess of such total amount, Licensors shall notify STC,
and STC shall determine whether (a) to discontinue the Development Program when
such total amount has been spent, (b) to authorize Licensors to spend additional
amounts, or (c) to revise the scope of the Development Program, as appropriate.
Such Year 1 Fees are non-refundable and non-creditable against future royalties,
and following an initial payment by STC to Sarnoff of One Hundred Thousand
($100,000), within 7 days of the Effective Date, Sarnoff and SRI shall initiate
work on the Development Program. Such initial payment shall be applied to the
Tasks in accordance with Exhibit A and subsequent Task Orders. Thereafter, all
future payments by STC will be based on the Task Order schedule for payment
terms as called for under Section 3.1.2 (c) above.

     3.3. Second Year Funding.  Not less than sixty (60) days prior to the
          -------------------
expiration of the first year of the Development Period, the Program Advisory
Team shall have developed and presented a written development proposal in the
form of proposed Task Orders, for the second year effort.  STC shall commit to a
research fee of Three Hundred Thousand ($300,000) for the work to be performed
during the second year (the "Year 2 Fee") to maintain the license granted
herein, except in the event that the Development Program is terminated or

                                      -3-
<PAGE>

modified by STC pursuant to Sections 13.3 and 13.6 or the second following
sentence. The Year 2 Fee shall be paid in accordance with the last sentence of
this Section 3.3. Notwithstanding the commitment of the Year 2 Fee and, in
addition to the rights of STC set forth in the second sentence of this Section
3.3, STC may request that the Year 2 Fee be reduced to an amount less than
$300,000 in the event that Sarnoff and SRI have failed to substantially perform
the Development Program during the first year of the Development Program. In
such case, a new Development Program for the second year may be entered into by
written consent of the Parties. The Year 2 Fee is non-refundable and non-
creditable against future royalties. The payment by STC of the Year 2 Fee will
be in accordance with the terms of the Task Orders for the second year of the
Development Program.

          3.4.  Renewal.  By mutual written agreement and consent of the
                -------
Parties, the Development Program may be extended beyond the Development Period
for additional periods of one (1) year each.  If STC desires to renew the
Development Program, STC shall give the Program Advisory Team written notice of
such election not less than sixty (60) days prior to the expiration of the then
current Development Period, as applicable.  The Program Advisory Team, on behalf
of Licensors, shall have thirty (30) days to present to STC a written
development proposal in the form of proposed Task Orders for the renewal year.

          3.5.  Records.  SRI and Sarnoff shall each maintain records, in
                -------
sufficient detail and in good scientific manner, which shall reflect all work
done and results achieved in the performance of each of their respective Tasks
included in the Development Program (including all data in the form required
under all applicable laws and regulations).

          3.6.  Meetings and Progress Reports.  During the term of the
                -----------------------------
Development Program, Sarnoff and SRI shall each keep STC generally informed of
the progress under each of their respective Tasks, including telephonic
conferences or other communications at STC's request and meetings at Sarnoff,
SRI or STC, at STC's request.  The Program Advisory Team will meet approximately
four times a year, but in no case shall there be (i) more than four (4) months
between meetings or a delay of more than one (1) month from the date of
completion of a Task, except as mutually agreed in writing.  The first meeting
shall be held at Sarnoff shortly after the Effective Date.  The reasonable
travel and subsistence costs for those SRI and/or Sarnoff meeting participants
invited by STC to attend a meeting will be invoiced separately from Development
Program payments and shall be paid by STC, upon the presentation of accurate and
complete conforming documentation.  If requested by STC, Sarnoff or SRI, as the
case may be, will provide STC with minutes of each meeting within ten (10) days
after the conduct of such meeting.  STC shall give GIB (as such term is defined
in Section 17.5) prompt notice of the arrangement of any proposed meeting
between STC and any Licensor relating to the Development Program.  A
representative of GIB (reasonably acceptable to the parties) shall be permitted
to attend any such meeting.  All costs and expenses of GIB and its
representative in connection with attendance at such meeting shall be borne by
GIB.  In the event and to the extent required by STC and included in a Task
Order, a written report from Sarnoff and SRI containing, in reasonable detail, a
description of the work performed by Sarnoff and SRI under each of their

                                      -4-
<PAGE>

respective Tasks of the Development Program and the results thereof will be
transmitted to STC upon the first to occur of (i) fifteen (15) days after the
completion of each Task and (ii) five (5) days prior to each scheduled meeting
relating to such Task.

          3.7.  Final Task Report.  In the event and to the extent required by
                -----------------
STC and included in a Task Order, within thirty (30) days following the
completion of each of their respective Tasks, Sarnoff and/or SRI, as the case
may be, shall prepare and provide STC with a detailed written final Task report,
which shall describe the work performed by Licensors under each of their
respective Tasks of the Development Program and the results thereof.

     Section 2.  Further Action and Assurances.
                 -----------------------------

          STC, SRI and Sarnoff hereby agree to execute and deliver such
additional documents and shall cause such further and additional action to be
taken as may be required or, in the reasonable judgment of STC, SRI and Sarnoff,
necessary or desirable to effect or evidence the provisions or intent of this
Amendment and the transactions contemplated hereby.

     Section 3.  Reference to and Effect on the Agreement.
                 ----------------------------------------

          a.  Upon the effectiveness of Section 1 hereof, on and after the date
hereof, each reference in the Agreement to "this Agreement", "hereunder",
"hereof", "herein" or words of like import, and each reference in the other
documents entered into in connection with the Agreement, shall mean and be a
reference to the Agreement, as amended hereby.

          b.  Except as specifically amended above, the Agreement shall remain
in full force and effect and is hereby ratified and confirmed.

          c.  The Agreement, as modified by this Amendment, constitutes the
entire understanding among the parties with respect to the subject matter
thereof, and supersedes any prior understanding and/or written or oral
agreements between them.

     Section 4.  Execution in Counterparts.
                 -------------------------

          This Amendment may be executed in any number of counterparts and by
the different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken
together shall constitute but one and the same instrument.

     Section 5.  Governing Law.
                 -------------

          This Amendment shall be governed by and construed in accordance with
the laws of the State of California, without regard to the conflicts of law
principles thereof.

                                      -5-
<PAGE>

     Section 6.  Headings.
                 --------

          Section heading in this Amendment are included herein for convenience
of reference only and shall not constitute a part of this Amendment for any
other purpose.

                    [Executions set forth on the next page]

                                      -6-
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to
Research and License Agreement to be executed by their respective officers
thereunto duly authorized as of the date first above written.

                         SRI INTERNATIONAL

                         By: /s/ William P. Sommers
                            -------------------------------------
                           William P. Sommers, President

                         DAVID SARNOFF RESEARCH CENTER

                         By: /s/ Carmen A. Catenese
                            -------------------------------------
                           Carmen A. Catenese, Vice President

                         SOLARCARE TECHNOLOGIES CORPORATION

                         By: /s/ Michael J. Gausling
                            -------------------------------------
                           Michael J. Gausling, President and
                           CEO

                                      -7-
<PAGE>

                                   Exhibit A

                            Description of Services

Task 5.3:             Polymer Microencapsulation

SRI Proposal Number:  PYC 95-122R1

Reference:            All work shall be subject to the provisions set forth in
                      the "Research and License Agreement" among SRI
                      International, David Sarnoff Research Center, and STC
                      Diagnostics, Inc.

SRI International will provide the appropriate personnel and administrative
support and exert its commercially reasonable efforts to determine the
feasibility of coacervatively encapsulating the submicron phosphor particles
with a functional polymer coating.  This study is intended to support the
aqueous phase stability of phosphor dispersions and provide an improved surface
composition for conjugation of antibodies or other proteins to the phosphors.
If successful, variations of this process should be generally applicable for the
coating of any upconverting phosphor composition.

We propose to coat (Y\\0.86\\Yb\\0.08\\Er\\0.06\\)\\2\\O\\2\\S phosphor powders
with a layer of polymethyl methacrylate:methacrylic acid (95.5) to be obtained
from Polysciences. Phosphor particles will be encapsulated in this polymer by
nonsolvent-induced phase separation coacervation. Briefly, the process consists
of suspending phosphor particles in a solution of the polymer in a nonaqueous
solvent. With the suspension being continuously stirred, a nonsolvent for the
polymer is added dropwise to induce phase separation of the polymer around the
phosphor particles. The rate of stirring is monitored to prevent formation of
polymer lumps. The incipient microcapsules are hardened by further addition of
nonsolvent and stirring. The suspension is filtered to yield dry, free-flowing
microcapsules.

Appropriate solvents and nonsolvents for the polymer will be determined by
literature review and preliminary solubility experiments.  The microcapsules
will be characterized by scanning electron microscopy and particle size studies.

This task will led by Mr. Paul Catz, Chemist II in the Controlled Release and
Biomedical Polymers Program.  Dr. Luke V. Schneider, Fine Particle Technology
Program Manager will be the project supervisor.

The duration of this task will be one (1) month, with an estimated cost of
$10,000.  SRI requests that the full amount of $10,000 be paid to initiate the
task.  A final assessment of the feasibility of this manufacturing approach will
be delivered to STC Diagnostics within 3 weeks of completion of the experimental
work.  This proposal will remain in effect until September 30, 1995; however SRI
will grant an extension if requested.
<PAGE>

                                   Exhibit A

                            Description of Services

Task 5.1:             Silica Coating in the Fluidized Bed Reactor

SRI Proposal Number:  PYC 95-120R1

Reference:            All work shall be subject to the provisions set forth in
                      the "Research and License Agreement" among SRI
                      International, David Sarnoff Research Center, and STC
                      Diagnostics, Inc.

SRI International will provide the appropriate personnel and administrative
support and exerts its commercially reasonable efforts to determine the
feasibility of using a fluidized bed process coat upconverting phosphor
particles with a thin layer of SiO\\2\\.  This study is intended to support the
aqueous phase stability of phosphor dispersions and provide an improved surface
composition for conjugation of antibodies or other proteins to the phosphors.
If successful, variations of this process should be generally applicable for the
silica coating of any upconverting phosphor composition.

We propose to coat (Y\\0.86\\Yb\\0.08\\Er\\0.06\\)\\2\\O\\2\\S phosphor powders
with a thin layer (10-50 nm) of a dieletric such as SiO\\2\\ in a fluidized bed
reactor using a tetraethylorthosilicate as the SiO\\2\\ precursor. This
technique is capable of producing thin, conformal coatings on particulate
substrates such as TiO\\2\\. the coatings will be characterized by Auger
electron spectroscopy.

Assuming the work in Phase 2, Tasks 1 and 2 is successful, the phosphor
materials generated in those tasks can be used directly in this task.  If these
tasks do not result in successful materials, we can perform these feasibility
studies on waste aggregate material left over from other synthesis and
fractionation tasks to support this study.

This task will be led by Dr. Angel Sanjurjo, Inorganic Materials Program
Manager.  Dr. Luke V. Schneider, Fine Particle Technology Program Manager, will
be the project supervisor.

The duration of this task will be one (1) month, with an estimated cost of
$10,000.  SRI requests that the full amount of $10,000 be paid to initiate the
task.  A final assessment of the feasibility of this manufacturing approach will
be delivered to STC Diagnostics within three (3) weeks of completion of the
experimental work.  This proposal will remain in effect until September 30,
1995; however, SRI will grant an extension if requested.

STC hereby concurs with the above and, by signing in the space provided below,
authorizes SRI to begin Task 5.1.

                                      -2-<PAGE>   1

                                                                    EXHIBIT 4.11

                            8% CONVERTIBLE DEBENTURE

NEITHER THE SECURITY EVIDENCED BY THIS DEBENTURE NOR THE SECURITIES ISSUABLE
UPON CONVERSION HEREOF HAVE BEEN REGISTERED WITH THE UNITED STATES SECURITIES
AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE OR UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR THE SECURITIES LAWS OF ANY
STATE. THE SECURITIES ARE RESTRICTED AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
TRANSFERRED EXCEPT AS PERMITTED UNDER THE ACT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS.

NO. 1                                                              US $2,650,000

                        TELESERVICES INTERNET GROUP INC.

                 8% CONVERTIBLE DEBENTURE DUE DECEMBER 31, 2000

         THIS DEBENTURE is issued by TeleServices Internet Group Inc. a
corporation organized and existing under the laws of the State of Florida (the
"Company") and is designated as its 8% Convertible Debenture Due December 31,
2000.

         FOR VALUE RECEIVED in the form of financial advisory services and the
delivery of a fairness opinion by Ladenburg Thalmann & Co. Inc. in connection
with the Company's completed acquisition of GeneralSearch.com, Inc., receipt of
which is hereby acknowledged by the Company, the Company hereby promises to pay
to Ladenburg Thalmann & Co. Inc., 590 Madison Avenue, New York, NY 10022, or
permitted assigns (the "Holder"), the principal sum of Two Million Six Hundred
Fifty Thousand Dollars ($2,650,000.00) on or before the earliest of December 31,
2000 or the closing of one or more debt and/or equity financings (including but
not limited to financings pursuant to any line of credit or other financing made
available to the Company by any bank) (the "Maturity Date"), with interest
(computed on the basis of a 360-day year for the actual number of days elapsed)
on the principal sum outstanding from time to time quarterly in arrears at the
rate of 8% per annum accruing from the date of initial issuance. Accrual of
interest shall commence on the first business day to occur after the date of
initial issuance and continue until payment in full of the principal sum has
been made or the outstanding amount hereunder has been converted in accordance
with the provisions hereof. If the Maturity Date is not a business day in the
State of New York, then such payment shall be made on the next succeeding
business day. The Company will pay the principal and any accrued but unpaid
interest on this Debenture on the Maturity Date, to the registered holder of
this Debenture in such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public or private
debts and shall be payable at the principal office of the Holder or at such
other address designated in writing by the Holder to the company.

         This Debenture is subject to the following additional provisions:

1.       The Company shall be entitled to withhold from all payments of interest
on this Debenture any amounts required to be withheld under the applicable
provisions of the United States income tax laws or

1
<PAGE>   2

other applicable laws at the time of such payments, and Holder shall execute and
deliver all required documentation in connection therewith.

2.       This Debenture has been issued without registration under, and may be
transferred or exchanged only in compliance with, the Securities Act of 1933, as
amended (the "Act"), and other applicable state and foreign securities laws. The
Holder shall deliver written notice to the Company of any proposed transfer of
this Debenture. In the event of any proposed transfer of this Debenture, the
Company may require, prior to issuance of a new Debenture in the name of such
other person, that it receive reasonable transfer documentation including legal
opinions that the issuance of the Debenture in such other name does not and will
not cause a violation of the Act or any applicable state or foreign securities
laws. Prior to any transfer of this Debenture, the Company and any agent of the
Company may treat the person in whose name this Debenture is duly registered on
the Company's Debenture Register as the owner hereof for the purpose of
receiving payment as herein provided and for all other purposes, whether or not
this Debenture be overdue.

3.       The Holder of this Debenture is entitled, at its option, to convert at
any time after the Maturity Date, the unpaid principal amount of this Debenture
or any portion thereof, and all or a portion of the accrued but unpaid interest
(subject to the right of the Company to pay the accrued but unpaid interest in
cash as set forth in Paragraph 5(a) below), into that number of shares of Common
Stock of the Company ("Conversion Shares") as is determined by dividing the
unpaid principal amount of this Debenture, and any accrued but unpaid interest
thereon (or such portion as the Holder elects to convert) by the per share
Conversion Price, upon 5 days prior written notice to the Company. The term
"Conversion Price" shall mean a price per share equal to 85% of the Market Price
at the Conversion Date (as defined in Paragraph 5 hereof), and the term "Market
Price" shall mean the average of the three lowest closing bid prices of the
Company's Common Stock (as reported by Bloomberg, LP) over the ten trading days
preceding the Conversion Date.

4.       The Company shall have the right to prepay the principal amount of this
Debenture, together with all accrued but unpaid interest thereon, in whole or in
part at any time on or before the Maturity Date upon 15 days' prior written
notice to the Holder and without penalty or premium.

5.       (a) Conversion shall be effectuated by surrendering this Debenture to
the Company (if such Conversion will convert all outstanding principal) together
with the form of conversion notice attached hereto as Exhibit A (the "Notice of
Conversion"), executed by the Holder of this Debenture evidencing such Holder's
intention to convert this Debenture or a specified portion (as above provided)
hereof. Interest accrued or accruing from the date of issuance to the date of
conversion shall, at the option of the Company, be paid in cash as set forth
above or in registered Common Stock upon conversion at the Conversion Price on
the Conversion Date. No fraction of a share or scrip representing a fraction of
a share will be issued on conversion, but the number of shares issuable shall be
rounded to the nearest whole share. The date on which Notice of Conversion is
given (the "Conversion Date") shall be deemed to be the date on which the Holder
faxes the Notice of Conversion duly executed to the Company. Facsimile delivery
of the Notice of Conversion shall be accepted by the Company at facsimile number
727-896-4206, attention Robert Gordon, and shall be deemed effectively given if
a confirmed facsimile is sent pursuant hereto during normal business hours of
the Company, if not, then on the next business day. Certificates representing
Common Stock upon conversion will be delivered to the Holder within five (5)
trading days from the date the Notice of Conversion is delivered to the Company.
Delivery of shares upon conversion shall be made to the address specified by the
Holder in the Notice of Conversion.

         (b) The Company understands that a delay in the issuance of shares of
Common Stock upon a conversion beyond the five (5) trading day period described
in Paragraph 5(a) could result in economic loss to the Holder. As compensation
to the Holder for such loss, the Company agrees to pay late payments to the

2
<PAGE>   3

Holder for late issuance of shares of Common Stock upon conversion in accordance
with the following schedule (where "No. Trading Days Late" is defined as the
number of trading days beyond five (5) trading days from the date the Notice of
Conversion is delivered to the Company).

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------
                                         Late Payment for Each
                                         $5,000 of Principal Amount
No. Trading Days Late                    Being Converted
-------------------------------------------------------------------------------
<S>                                      <C>

1                                        $100
-------------------------------------------------------------------------------

2                                        $200
-------------------------------------------------------------------------------

3                                        $300
-------------------------------------------------------------------------------

4                                        $400
-------------------------------------------------------------------------------

5                                        $500
-------------------------------------------------------------------------------

6                                        $600
-------------------------------------------------------------------------------

7                                        $700
-------------------------------------------------------------------------------

8                                        $800
-------------------------------------------------------------------------------

9                                        $900
-------------------------------------------------------------------------------

10                                       $1,000
-------------------------------------------------------------------------------

More than 10                             $1,000 + $200 for each Trading Day
                                         Late beyond 10 Trading Days
-------------------------------------------------------------------------------

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

The Company shall pay any payments incurred under this Paragraph 5(b) in
immediately available funds upon demand. Nothing herein shall limit Holder's
right to pursue injunctive relief and/or actual damages for the Company's
failure to issue and deliver Common Stock to the holder, including, without
limitation, the Holder's actual losses occasioned by any "buy-in" of Common
Stock necessitated by such late delivery. Furthermore, in addition to any other
remedies which may be available to the Holder, in the event that the Company
fails for any reason to effect delivery of such shares of Common Stock within
five (5) trading days from the date the Notice of Conversion is delivered to the
Company, the Holder will be entitled to revoke the

3
<PAGE>   4

relevant Notice of Conversion by delivering a notice to such effect to the
Company, whereupon the Company and the Holder shall each be restored to their
respective positions immediately prior to delivery of such Notice of Conversion,
and in such event no late payments shall be due in connection with such
withdrawn conversion.

If at any time (a) the Company challenges, disputes or denies the right of the
Holder to effect the conversion of this Debenture into Common Stock or otherwise
dishonors or rejects any Notice of Conversion delivered in accordance with this
Paragraph 5 or (b) any Company stockholder who is not and has never been an
Affiliate (as defined in Rule 405 under the Act, as amended) of the Holder
obtains a judgment or any injunctive relief from any court or public or
governmental authority which denies, enjoins, limits, modifies, delays or
disputes the right of the holder hereof to effect the conversion of this
Debenture into Common Stock, then the Holder shall have the right, by written
notice, to require the Company to promptly redeem this Debenture for cash at a
redemption price equal to one hundred thirty percent (130%) of the outstanding
principal amount hereof and all accrued and unpaid interest hereon. Under any of
the circumstances set forth above, the Company shall be responsible for the
payment of all costs and expenses of the Holder, including reasonable legal fees
and expenses, as and when incurred in disputing any such action or pursuing its
rights hereunder (in addition to any other rights of the Holder), subject in the
case of clause (b) to the Company's right to control and assume the defense of
any such action. In the absence of an injunction precluding the same, the
Company shall issue shares upon a properly noticed conversion.

The Holder shall be entitled to exercise its conversion privilege
notwithstanding the commencement of any case under 11 U.S.C. Section 101 et seq.
(the "Bankruptcy Code"). In the event the Company is a debtor under the
Bankruptcy Code, the Company hereby waives to the fullest extent permitted any
rights to relief it may have under 11 U.S.C. Section 362 in respect of the
Holder's conversion privilege.

6.       No provision of this Debenture shall alter or impair the obligation of
the Company, which is absolute, unconditional and irrevocable, to pay the
principal of, and interest on, this Debenture at the time, place, and rate, and
in the coin or currency or shares of Common Stock, herein prescribed. This
Debenture is a direct obligation of the Company.

7.       If the Company merges or consolidates with another corporation or sells
or transfers all or substantially all of its assets to another person and the
holders of the Common Stock are entitled to receive stock, securities or
property in respect of or in exchange for Common Stock, then as a condition of
such merger, consolidation, sale or transfer, the Company and any such
successor, purchaser or transferee agree that the Debenture may thereafter be
converted on the terms and subject to the conditions set forth above into the
kind and amount of stock, securities or property receivable upon such merger,
consolidation, sale or transfer by a holder of the number of shares of Common
Stock into which this Debenture might have been converted immediately before
such merger, consolidation, sale or transfer, subject to adjustments which shall
be as nearly equivalent as may be practicable. The Company shall notify the
Holder in writing no less than 30 (thirty) days prior to any proposed merger,
consolidation or sale or transfer of all or substantially all of the assets of
the Company (a "Sale"), and the Holder hereof shall have the right to convert
the principal balance outstanding, together with any accrued but unpaid interest
thereon, upon the terms set forth herein by delivering a Notice of Conversion to
the Company in accordance with Paragraph 5 hereof within fifteen (15) days of
receipt of notice of such Sale from the Company.

8.       The Holder of the Debenture, by acceptance hereof, agrees that this
Debenture is being acquired for investment and that such Holder will not offer,
sell or otherwise dispose of this Debenture or the Shares of Common Stock
issuable upon conversion thereof except under circumstances which will not
result in a

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<PAGE>   5

violation of the Act or any applicable state Blue Sky or foreign laws or similar
laws relating to the sale of securities.

9.       This Debenture shall be governed by and construed in accordance with
the laws of the State of New York. Each of the parties consents to the
jurisdiction of the federal courts whose districts encompass any part of the
City of New York or the state courts of the State of New York sitting in the
City of New York in connection with any dispute arising under this Agreement and
hereby waives, to the maximum extent permitted by law, any objection, including
any objection based on forum non conveniens, to the bringing of any such
proceeding in such jurisdictions.

10.      The following shall constitute an "Event of Default":

                  a.       The Company shall default in the payment of principal
                           or interest on this Debenture when due and same shall
                           continue for a period of three (3) days; or

                  b.       Any of the representations or warranties made by the
                           Company herein, in the Registration Rights Agreement,
                           or in any agreement, certificate or financial or
                           other written statements heretofore or hereafter
                           furnished by the Company in connection with the
                           execution and delivery of this Debenture or the
                           Registration Rights Agreement shall be false or
                           misleading in any material respect at the time made;
                           or

                  c.       The Company (i) fails to issue shares of Conversion
                           Shares to the Holder or to cause its Transfer Agent
                           to issue Conversion Shares upon exercise by the
                           Holder of the conversion rights of the Holder in
                           accordance with the terms of this Debenture, (ii)
                           fails to transfer or to cause its Transfer Agent to
                           transfer any certificate for Conversion Shares issued
                           to the Holder upon conversion of this Debenture as
                           and when required by this Debenture or the
                           Registration Rights Agreement, and such transfer is
                           otherwise lawful, or (iii) fails to remove any
                           restrictive legend or to cause its Transfer Agent to
                           transfer any certificate or any Conversion Shares
                           issued to the Holder upon conversion of this
                           Debenture as and when required by this Debenture or
                           the Registration Rights Agreement and such legend
                           removal is otherwise lawful, and any such failure
                           shall continue uncured for three (3) trading days; or

                  d.       The Company shall fail to use 100% of the net
                           proceeds of any debt and/or equity financings
                           (including but not limited to any financings pursuant
                           to any line of credit or other financing made
                           available to the Company by any bank) to reduce the
                           principal balance outstanding, together with any
                           accrued but unpaid interest thereon from time to
                           time; or

                  e.       The Company shall fail to perform or observe, in any
                           material respect, any other covenant, term,
                           provision, condition, agreement or obligation of the
                           Company under (i) the Registration Rights Agreement
                           (including but not limited to any failure by the
                           Company to comply with its obligation to file a
                           registration statement pursuant to Section 3 of the
                           Registration Rights Agreement), or (ii) this
                           Debenture, and such failure shall continue uncured
                           for a period of ten (10) days after written notice
                           from the Holder of such failure; or

                  f.       The Company shall (1) after the date hereof admit in
                           writing its inability to pay its debts generally as
                           they mature; (2) make an assignment for the benefit
                           of creditors or commence proceedings for its
                           dissolution; or (3) apply for or

5
<PAGE>   6

                           consent to the appointment of a trustee, liquidator
                           or receiver for its or for a substantial part of its
                           property or business; or

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

                  h.       Any governmental agency or any court of competent
                           jurisdiction at the instance of any governmental
                           agency shall assume custody or control of the whole
                           or any substantial portion of the properties or
                           assets of the Company and shall not be dismissed
                           within thirty (30) days thereafter; or

                  i.       Any money judgment, writ or warrant of attachment, or
                           similar process in excess of Two Hundred Thousand
                           ($200,000) Dollars in the aggregate shall be entered
                           or filed against the Company or any of its properties
                           or other assets and shall remain unpaid, unvacated,
                           unbonded or unstayed for a period of thirty (30) days
                           or in any event later than five (5) days prior to the
                           date of any proposed sale thereunder; or

                  j.       Bankruptcy, reorganization, insolvency or liquidation
                           proceedings or other proceedings for relief under any
                           bankruptcy law or any law for the relief of debtors
                           shall be instituted by or against the Company and, if
                           instituted against the Company, shall not be
                           dismissed within thirty (30) days after such
                           institution or the Company shall by any action or
                           answer approve of, consent to, or acquiesce in any
                           such proceedings or admit the material allegations
                           of, or default in answering a petition filed in any
                           such proceeding;

then, or at any time thereafter, and in each and every such case, unless such
Event of Default shall have been expressly waived in writing by the Holder
(which waiver shall not be deemed to be a waiver of any subsequent default) the
principal balance outstanding under this Debenture, together with any accrued
but unpaid interest thereon, shall be immediately due and payable, without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived, anything herein or in any note or other instruments contained
to the contrary notwithstanding, and the Holder shall be entitled in its sole
discretion and at its election to immediately enforce any and all of the
Holder's rights and remedies provided herein or any other rights or remedies
afforded by law. The amount due and payable hereunder to the Holder as of the
Maturity Date shall increase each month by an amount equal to 2.5% of the total
amount outstanding on the first day of each month during which such amount
remains outstanding.

12.      Nothing contained in this Debenture shall be construed as conferring
upon the Holder the right to vote or to receive dividends or to consent or
receive notice as a shareholder in respect of any meeting of shareholders or any
rights whatsoever as a shareholder of the Company, unless and to the extent
converted in accordance with the terms hereof.

13.      The Holder shall, promptly upon full payment by the Company of the
principal of and interest on this Debenture, together with all costs and
expenses, if any, due hereon, surrender this Debenture to the Company for
retirement and cancellation; provided, however, that to the extent that the
Company makes one or more payments to the Holder, which payments or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside, and/or required to be repaid to a trustee, receiver, or any other
part under the United States Bankruptcy Code, as amended, any state or federal
law, common law, or equitable causes ("Voidable Transfer") and the Holder is
required to repay or restore any such Voidable Transfer or the amount or any
portion thereof, or upon the advice of its counsel is advised to do so, then as
to any such

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<PAGE>   7

Voidable Transfer or the amount repaid or restored (including all reasonable
costs, expenses and attorneys' fees of Payee related thereto), the liability of
the Company shall automatically be revived, reinstated and restored and shall
exist in full force and effect as though such Voidable Transfer had never been
made.

14.      In no event shall the Holder be permitted to convert this Debenture for
Conversion Shares in excess of the amount of this Debenture upon the conversion
of which, (x) the number of shares of Common Stock owned by such Holder (other
than Conversion Shares) plus (y) the number of Conversion Shares, would be equal
to or exceed 9.9% of the number of shares of Common Stock then issued and
outstanding, including shares issuable upon conversion of this Debenture held by
such Holder after application of this Paragraph 12. As used herein, beneficial
ownership shall be determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder. To
the extent that the limitation contained in this Paragraph 12 applies, the
determination of whether this Debenture is convertible (in relation to other
securities owned by the Holder) and of which a portion of this Debenture is
convertible shall be in the sole discretion of such Holder, and the submission
of a Notice of Conversion shall be deemed to be such Holder's determination of
whether this Debenture is convertible (in relation to other securities owned by
such holder) and of which portion of this Debenture is convertible, in each case
subject to such aggregate percentage limitation, and the Company shall have no
obligation to verify or confirm the accuracy of such determination. Nothing
contained herein shall be deemed to restrict the right of a holder to convert
this Debenture into shares of Common Stock at such time as such conversion will
not violate the provisions of this Paragraph 12. The provisions of this
Paragraph 12 may be waived by the Holder of this Debenture upon not less than 75
days' prior notice to the Company, and the provisions of this Paragraph 12 shall
continue to apply until such 75th day (or such later date as may be specified in
such notice of waiver). No conversion of this Debenture in violation of this
Paragraph 12 but otherwise in accordance with this Debenture shall affect the
status of the Common Stock issued upon such conversion as validly issued,
fully-paid and non-assessable.

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

Dated:   August 23, 2000
                                         TeleServices Internet Group, Inc.

                                         By: /s/ Robert P. Gordon
                                             -----------------------------------
                                             Robert P. Gordon, Chairman

Attest:

/s/ Paul W. Henry
-----------------

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<PAGE>   8

EXHIBIT A

NOTICE OF CONVERSION

(To be Executed by the Registered Holder in order to Convert the Debenture)

         The undersigned hereby irrevocably elects to convert $ ________________
of the principal amount of the above Debenture No.1 into Shares of Common Stock
of TeleServices Internet Group, Inc. (the "Company") according to the conditions
hereof, as of the date written below.

Date of Conversion*
                   -------------------------------------------------------------

Applicable Conversion Price*
                             ---------------------------------------------------

Accrued Interest
                ----------------------------------------------------------------

Signature
         -----------------------------------------------------------------------
                                     [Name]

Address:
         -----------------------------------------------------------------------

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

* This original Notice of Conversion must be received by the Company by the
third Trading Day following the Date of Conversion, and, if such conversion
represents the remaining principal balance of the Debenture, the original
Debenture.

8

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