Document:

INDEMNITY AGREEMENT

         This Indemnity Agreement (the "Agreement") is made as of the ______ day
of _____________________,  1998, by and between JAWS Technologies Inc., a Nevada
corporation (the "Corporation"),  and Arthur Wong (the "Indemnitee"), a director
and/or officer of the Corporation.

                                 R E C I T A L S

A.       The Corporation and the Indemnitee recognize that the interpretation of
statutes, regulations, court opinions and the Corporation's Articles of
Incorporation and bylaws may be too uncertain to provide the Corporation's
officers and directors with adequate guidance with respect to the legal risks
and potential liabilities to which they may become personally exposed as a
result of performing their duties in good faith for the Corporation.

B.       The Corporation and the Indemnitee are aware of the substantial
increase in the number of lawsuits filed against corporate officers and
directors.

C.       The Corporation and the Indemnitee recognize that the cost of defending
against such lawsuits, whether or not meritorious, may impose substantial
economic hardship upon the Corporation's officers and directors.

D.       The Corporation and the Indemnitee recognize that the legal risks,
potential liabilities and expenses of defense associated with litigation against
officers and directors arising or alleged to arise from the conduct of the
affairs of the Corporation are frequently excessive in view of the amount of
compensation received by the Corporation's officers and directors, and thus may
act as a significant deterrent to the ability of the Corporation to obtain
experienced and capable officers and directors.

E.       Article 109 of the Colorado Business Corporation Act, which sets forth
certain provisions relating to the indemnification of officers and directors, as
defined therein, of a Colorado corporation by such corporation, is specifically
not exclusive of other rights to which those indemnified thereunder may be
entitled under any bylaw, agreement, vote of shareholders or disinterested
directors, or otherwise.

F.       In order to induce capable persons such as the Indemnitee to serve or
continue to serve as officers or directors of the Corporation and to enable them
to perform their duties to the Corporation secure in the knowledge that certain
expenses and liabilities that may be incurred by them will be borne by the
Corporation, the Board of Directors of the Corporation has determined, after due
consideration and investigation of the terms and provisions of this Agreement
and the various other

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options  available  to the  Corporation  and  the  Indemnitee  in  lieu  of this
Agreement,  that  the  following  Agreement  is in  the  best  interests  of the
Corporation and its shareholders.

G.       The Corporation desires to have the Indemnitee serve or continue to
serve as an officer and/or director of the Corporation, and the Indemnitee
desires to serve or continue to serve as an officer and/or director of the
Corporation provided, and on the express condition, that he is furnished with
the indemnity set forth below.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the mutual covenants and agreement
set forth below, the Corporation and the indemnitee agree as follows:

1.       Continued Service. The Indemnitee agrees to serve or continue to serve
as a director and/or officer of the Corporation for so long as he is duly
elected and appointed or until such time as he resigns in writing. The terms of
any existing employment agreement and confidentiality agreement between the
Indemnitee and the Corporation shall continue in effect but shall be deemed to
be modified or supplemented by the terms of this Agreement.

2.                Definitions.

(a)      The term "Proceeding" shall include any threatened, pending or
completed action, suit or proceeding, whether brought in the name of the
Corporation or otherwise and whether of a civil, criminal or administrative or
investigative nature whether formal or informal, including, but not limited to,
actions, suits or proceedings brought under or predicated upon the Securities
Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, their
respective state counterparts or any rule or regulation promulgated thereunder,
in which the Indemnitee may be or may have been involved as a party or otherwise
by reason of the fact that the Indemnitee may be or may have been involved as a
party or otherwise by reason of the fact that the Indemnitee is or was a
director and/or officer of the Corporation, or any subsidiary, by reason of any
action taken by him or of any inaction on his part while acting as such director
and/or officer, or by reason of the fact that he is or was serving at the
request of the Corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, whether or
not he is serving in such capacity at the time any indemnified liability or
reimbursable expense is incurred.

(b)      The term "Expenses" shall include, but shall not be limited to,
damages, judgment, fines, settlement and charges, costs, expenses of
investigation, legal fees and other expenses of defense of legal actions, suits,
proceedings or claims and appeals therefrom, and expenses of appeal, attachment
or similar bonds. "Expenses" shall not include any judgment, fines or penalties
actually levied against the Indemnitee which the Company is prohibited by
applicable law from paying.

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<PAGE>

3.       Indemnity in Third-Party Proceedings. Subject to Paragraph 8, the
Corporation shall indemnify the Indemnitee in accordance with the provisions of
this Paragraph 3 if the Indemnitee is a party to, threatened to be made a party
to or otherwise involved in any Proceeding (other than a Proceeding by the
Corporation itself to procure a judgment in its favor), by reason of the fact
that the Indemnitee is or was a director and/or officer of the Corporation or a
subsidiary, or is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against all Expenses actually and reasonably
incurred by the Indemnitee in connection with the defense or settlement of such
Proceeding, provided it is determined, pursuant to Paragraph 7 or by the court
before which such action was brought, that the Indemnitee in case of conduct in
an official capacity with the Corporation, conduct himself in good faith and in
a manner that he reasonably believed to be in the best interests of the
Corporation or, in all other cases; that his conduct was at least not opposed to
the Corporation's best interests, and, in the case of a criminal proceeding, had
no reasonable cause to believe that his conduct was unlawful. The termination of
any such Proceeding by judgment, order of court, settlement, conviction or upon
a plea of nolo contendre or its equivalent shall not be determinative that the
Indemnitee did not meet the standard of care in this Paragraph 3.

4.       Indemnity in Proceeding by or in the Name of the Corporation. Subject
to Paragraph 8, the Corporation shall indemnify the Indemnitee against all
Expenses actually and reasonably incurred by the Indemnitee in connection with
the defense or settlement of any Proceeding by or in the name of the Corporation
or a subsidiary to procure a judgment in its favor by reason of the fact that
the Indemnitee was or is a director and/or officer of the Corporation or a
subsidiary and is or was serving at the request of the Corporation as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, but only if he acted in good faith and in a
manner that he reasonably believed to be in the best interests of the
Corporation and its shareholders; provided, however, that no indemnification for
Expenses shall be made under this Paragraph 4 with respect to any claim, issue
or matter as to which the Indemnitee shall have been adjudged to be liable to
the Corporation, unless and only to the extent that any court in which such
Proceeding is brought shall determine upon application that despite the
adjudication of liability, but in view of all the circumstances of the case, the
Indemnitee is fairly and reasonably entitled to indemnity for such expenses as
such court shall deem proper.

5.       Indemnification of Expenses of Successful Party. Notwithstanding any
other provisions of this Agreement, to the extent that the Indemnitee has been
successful on the merits or otherwise in defense of any Proceeding or in defense
of any claim, issue or matter therein, including the dismissal of an action
without prejudice, the Indemnitee shall be indemnified against all Expenses
incurred in connection therewith.

6.       Advances of Expenses. Expenses incurred by the Indemnitee pursuant to
Paragraph 3 and 4 in any Proceeding shall be paid by the Corporation in advance
of

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the determination of such Proceeding at the written request of the Indemnitee,
if the Indemnitee shall (a) undertake in writing to repay such amount to the
extent that it is ultimately determined that the Indemnitee is not entitled to
indemnification in such amount, and (b) deliver to the Corporation a certificate
affirming in good faith that the Indemnitee has met the relevant standards for
indemnification set forth in Paragraphs 3 and 4.

7.       Right of Indemnitee to Indemnification Upon Application; Procedure Upon
Application. Any indemnification or advance under Paragraph 3, 4 or 6 shall be
made no later than 30 days after receipt of the written request of the
Indemnitee therefor, unless, in the case of an indemnification, a determination
is made within said 30-day period by (a) the Board of Directors of the
Corporation by a majority vote of a quorum thereof consisting of directors who
were not parties to such Proceedings, or if a quorum cannot be obtained, by a
majority vote of a committee designated by the board of directors, which
committee shall consist of two or more directors not parties to the Proceedings,
except that directors who are parties to the Proceedings may participate in
designation of the committee or (b) independent legal counsel in a written
opinion (which counsel shall be appointed by the majority vote of the full board
of directors including parties to the Proceedings) that the Indemnitee has not
met the relevant standards for indemnification set forth in Paragraphs 3 and 4.

         The right to indemnification or advances as provided by this Agreement
shall be enforceable by the Indemnitee in any court of competent jurisdiction.
The Corporation shall bear the burden of proving that indemnification or
advances are not appropriate. The failure of the Corporation to have made a
determination that indemnification or advances are proper in the circumstances
shall not be a defense to the action or create a presumption that the Indemnitee
has not met the applicable standard of conduct. The Indemnitee's Expenses
incurred in connection with successfully establishing his right to
indemnification or advances, in whole or in part, in any such Proceeding shall
also be indemnified by the Corporation.

8.                Indemnification Hereunder Not Exclusive.

(a)      Notwithstanding any other provision of this Agreement, the Company
shall not indemnify the Indemnitee for any act or omission or transactions for
which indemnification is expressly prohibited by the Nevada Business Corporation
Act.

(b)      The right to indemnification provided by this Agreement shall not be
exclusive of any other rights to which the Indemnitee may be entitled under the
Corporation's Articles of Incorporation, bylaws, any agreement, any vote of
shareholders or disinterested directors, the Nevada Business Corporation Act or
otherwise, both as to action in his official capacity and as to action in
another capacity while he holds such office. The indemnification under this
Agreement shall continue as to the Indemnitee even though he may have ceased to
be a director or officer, and shall inure to the benefit of the heirs and
personal representative of the Indemnitee.

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<PAGE>

9.       Partial Indemnification. If the Indemnitee is entitled under any
provision of this Agreement to indemnification by the Corporation for a portion
of his Expenses actually and reasonably incurred by him in any Proceeding but
not, however, for the total amount thereof, the Corporation shall nevertheless
indemnify the Indemnitee for the portion of such Expenses to which the
Indemnitee is entitled.

10.      Merger or Consolidation. In the event that the Corporation shall be a
constituent corporation in a consolidation, merger or other reorganization, the
Corporation, if it shall not be the surviving, resulting or acquiring
corporation therein, shall require as a condition thereto that the surviving,
resulting or acquiring corporation agrees to indemnify the Indemnitee to the
full extent provided herein. Whether or not the Corporation is the resulting,
surviving or acquiring corporation in any such transaction, the Indemnitee shall
also stand in the same position under this Agreement with respect to the
resulting, surviving or acquiring corporation as he would have with respect to
the Corporation if its separate existence had continued.

11.      Severability. If any provision of this Agreement or the application of
any provision hereof to any person or circumstance is held invalid,
unenforceable or otherwise illegal, the remainder of this Agreement and the
application of such provision to other persons or circumstances shall not be
affected, and the provision so held to be invalid, unenforceable or otherwise
illegal shall be revised to the extent (and only to the extent) necessary to
make it enforceable, valid and legal.

12.      Governing Law. This Agreement shall be governed by and construed in
accordance with the internal laws of the State of Nevada.

13.      Insurance. The Corporation may purchase and maintain insurance on
behalf of the Indemnitee against any liability asserted against him or incurred
by him in any such capacity as a director, officer or other employee or agent of
the Corporation or an affiliate of the Corporation, or arising out of his status
as such, whether or not the Corporation would have the power to indemnify him
against such liability under the provisions of this Agreement. The purchase and
maintenance of such insurance shall not in any way limit or affect the rights
and obligations of the Corporation and/or the Indemnitee under this Agreement,
and the execution and delivery of this Agreement by the Corporation and the
Indemnitee shall not in any way be construed to limit or affect the rights and
obligations of the Corporation and of the other party or parties thereto under
any such policy or agreement of insurance.

         In the event the Indemnitee shall receive payment from any insurance
carrier or from the plaintiff in any action against the Indemnitee with respect
to indemnified amounts after payment on account of all or part of such
indemnified amounts having been made by the Corporation pursuant to this
Agreement, the Indemnitee shall reimburse the Corporation for the amount, if
any, by which the sum of such payments by such insurance carrier or such
plaintiff and payments by the Corporation to the Indemnitee exceeds such
indemnified amounts; provided, however, that such portions, if any, of such
insurance proceeds that are required to be reimbursed to the

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<PAGE>

insurance carrier under the terms of its insurance policy shall not be deemed to
be payments to the Indemnitee hereunder. in addition, upon payments of
indemnified amounts under the terms and conditions of this Agreement, the
Corporation shall be subrogated to the Indemnitee's rights against any insurance
carrier with respect to such indemnified amounts (to the extent permitted under
such insurance policies). Such right of subrogation shall be terminated upon
receipt by the Corporation of the amount to be reimbursed by the Indemnitee
pursuant to the first sentence of this paragraph.

14.      Notices. The Indemnitee shall, as a condition precedent to his right to
be indemnified under this Agreement, give to the Corporation written notice as
soon as practicable of any claim made against him for which indemnity will or
could be sought under this Agreement. Notice to the Corporation shall be
directed to JAWS Technologies Inc. 380-603-7 Avenue SW, Calgary, Alberta, Canada
T2P 2T5 (or at such other address or to the attention of such other person as
the Corporation shall designate in writing to the Indemnitee).

                                        JAWS TECHNOLOGIES INC.

By:
   -------------------------------------

                                        INDEMNITEE

/s/Arthur Wong
----------------------------------------EXHIBIT 10.9

                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE  AGREEMENT is made June 21, 1999, by and among Jaws
Technologies  Inc., a Nevada  corporation  ("Company"),  with offices at 1013 17
Avenue  SW,  Calgary,  Alberta,  Jaws  Technologies  Inc.,  an  Alberta,  Canada
corporation  ("Jaws  Canada"),  with  offices  at 1013 17  Avenue  SW,  Calgary,
Alberta,   and  the  PURCHASER   LISTED  ON  SCHEDULE  1  attached  hereto  (the
"Purchaser").

                                    RECITALS

         A.  Company  is  in  the  business  of  providing  electronic  security
solutions.

         B.  Purchaser  desires to invest in Company  pursuant  to the terms and
conditions of this Agreement.

                                    AGREEMENT

         In consideration of the mutual promises and covenants contained in this
Agreement and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

         1.      Authorization and Sale of Shares.

                 1.1 Authorization. Company has, or on or before the Closing (as
defined in Section 2 below) will have,  duly authorized the issuance and sale of
up to  1,000,000  shares of its Common  Stock,  $0.001  par value  (the  "Common
Stock"), having the rights, restrictions,  privileges, and preferences set forth
in the Terms of the Capital Stock of Company  attached  hereto as Exhibit A (the
"Stock Terms") and 834,000 purchase warrants,  each warrant entitling the holder
to  purchase  one share  Common  Stock at any time prior to June 30, 2001 for US
$2.25 per share subject to the forced exercise  clause in the Investors'  Rights
Agreement (the "Warrants").

                 1.2 Sale of Shares. Subject to the terms and conditions of this
Agreement,  at the  Closing the Company  will sell and issue to  Purchaser,  and
Purchaser will acquire,  the number of shares of Common Stock set forth opposite
the  Purchaser's  name on Schedule 1 attached hereto for the  consideration  set
forth thereon.  The Company will issue .834 Warrants to Purchaser for each share
of Common Stock purchased by the Purchaser the  consideration set forth thereon.
Purchaser   will  receive  the  numbers  of  Warrants  set  forth  opposite  the
Purchaser's  name on  Schedule 1  attached  hereto.  All shares of Common  Stock
issued  and sold  under  this  Agreement  and all  Warrants  issued  under  this
Agreement are referred to as the "Shares."

                 1.3 Use of Proceeds.

                     (a) Working Capital.  Company will use the proceeds,  after
paying  commissions  and finders fees from the sale of the Shares for the growth
of Company through investment in marketing,  general and administrative overhead
expenses,  capital expenditures,

<PAGE>

research and  development,  and general working capital  purposes.  Pending such
use, Company shall place such proceeds in one or more demand deposit accounts.

         2.      The Closing.

                 2.1 The  Closing.  The  closing  (the  "Closing")  of the sale,
purchase and issuance of the Shares under this Agreement at 6:00 p.m.  (Mountain
Standard  Time) on June 21, 1999,  or at such other time,  date and place as are
mutually agreeable to Company and Purchaser (the "Closing Date").  Following the
Closing,  the Purchaser  shall deliver to the law firm of Bishop & McKenzie,  in
trust,  the  amounts  set forth in  Schedule 1 attached  hereto.  Following  the
delivery to Purchaser of a certificate or certificates  for the number of shares
of Common  Stock and  Warrants  set forth on Schedule 1 attached  hereto and the
receipt by the Purchaser of the legal opinion to be attached hereto as Exhibit D
and the Purchasers  confirmation  of  satisfaction  with same the funds shall be
released.

                 2.2  Conditions.  If at  the  Closing  any  of  the  applicable
conditions  specified  in  Section  5  hereof  shall  not have  been  fulfilled,
Purchaser  shall,  at its election,  be relieved of its  obligations to purchase
Shares at the Closing  without  thereby  waiving any other rights it may have by
reason of such failure or such non-fulfillment.

         3.      Representations of Company.  Subject to and except as disclosed
by Company in Exhibit B attached hereto, Company both on behalf of itself and on
behalf of its subsidiary  Jaws Canada (as defined  below) hereby  represents and
warrants to Purchaser as follows:

                 3.1 Organization and Standing.

                     (a)  Company.  Company  is a  corporation  duly  organized,
validly existing, and in good standing under the laws of the State of Nevada and
has full  corporate  power and  authority  to conduct its  business as presently
conducted  and as proposed to be conducted by it, to enter into and perform this
Agreement,  and to carry out the  transactions  contemplated  by this Agreement.
Company is duly qualified to do business as a foreign corporation in every other
jurisdiction  in which the failure to so qualify  would have a material  adverse
effect on Company's operations or financial condition.  Company has furnished to
Purchaser  (or its legal  counsel)  true and complete  copies of its Articles of
Incorporation and bylaws, each as amended to date and presently in effect.

                     (b) Jaws Canada is the Company's only  subsidiary,  and the
Company  owns 100% of the  capital  stock of Jaws  Canada.  Jaws  Canada is duly
organized, validly existing, and in good standing under the laws of the Province
of Alberta and has full power and authority to conduct its business as presently
conducted  and as proposed to be conducted by it, to enter into and perform this
Agreement,  and to carry out the  transactions  contemplated  by this Agreement.
Jaws Canada is duly  qualified  to do business  in every other  jurisdiction  in
which the  failure to so qualify  would have a material  adverse  effect on Jaws
Canada's  operations  or  financial  condition.  Jaws  Canada has  furnished  to
Purchaser  (or its legal  counsel)  true and complete  copies of its Articles of
Organization and operating  agreement,  each as amended to date and presently in
effect.

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<PAGE>

                 3.2  Capitalization.  The  authorized  capital stock of Company
(immediately prior to the Closing) will consist of:

                     (a) Common Stock. 95 million shares of common stock, $0.001
par value (the "Common Stock"); and

                     (b) Preferred Stock. 5 million shares of Preferred,  $0.001
par value, none of which is issued and outstanding.

All of the issued and  outstanding  shares of capital  stock of the Company have
been duly  authorized and validly  issued and are fully paid and  nonassessable.
Except as otherwise  provided in this  Agreement or as set forth in the Exhibits
of this Agreement, (i) no subscription,  warrant, option,  convertible security,
or other right  (contingent  or  otherwise) to purchase or acquire any shares of
capital  stock of Company is authorized  or  outstanding,  (ii) there is not any
commitment of Company to issue any subscription,  warrant,  option,  convertible
security, or other such right or to issue or distribute to holders of any shares
of its capital stock any  evidences of  indebtedness  or assets of Company,  and
(iii) Company has no obligation  (contingent or otherwise) to purchase,  redeem,
or otherwise  acquire any shares of its capital stock or any interest therein or
to pay any dividend or make any other distribution in respect thereof. Except as
otherwise  provided in this Agreement or as set forth on the exhibits hereto, no
person or entity is entitled to (i) any preemptive or similar right with respect
to the issuance of any capital  stock of Company or (ii) any rights with respect
to the  registration of any capital stock of Company under the Securities Act of
1933,  as amended  (the  "Securities  Act").  All of the issued and  outstanding
shares of Common  Stock  have  been  offered,  issued,  and sold by  Company  in
compliance with applicable foreign, federal and state securities laws. Except as
contemplated  herein  or as set  forth  in  Exhibit  B  hereto,  to the  best of
Company's  knowledge,  no  stockholder  of Company has granted  options or other
rights to purchase any shares of Common Stock from such stockholder.

                 3.3  Subsidiaries.  The Company has no subsidiaries nor owns or
controls, directly or indirectly, any other corporation, association or business
entity, except for Jaws Canada, which is wholly owned by Company.

                 3.4  Debtholders'  and  Stockholders'  List  and  Stockholders'
Agreements.  Attached as Exhibit C and Exhibit F is a true and complete  list of
the  debtholders  (other than vendors and trade  payables) and  stockholders  of
Company,  showing  the  amount of debt  instruments  and the number of shares of
Common  Stock  or  other  securities  of  Company  held by each  debtholder  and
stockholder  as of the  date of this  Agreement  and the  consideration  paid to
Company, if any, for such instruments and shares. Except as contemplated by this
Agreement,  there are no agreements,  written or oral,  between  Company and any
holder of its capital stock, or, to the best of Company's  knowledge,  among any
holders of its capital  stock,  relating  to the  acquisition,  disposition,  or
voting of Company's capital stock.

                 3.5 Issuance of Shares. The issuance, sale, and delivery of the
Shares in accordance with this  Agreement,  and the issuance and delivery of the
shares of Common Stock  issuable upon  conversion of the Warrants,  have been or
will be, on or prior to the Closing,  duly authorized and reserved for issuance,
as the case may be, by all  necessary  corporate  action on the

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<PAGE>

part of Company,  and the Shares when so issued,  sold,  and  delivered  against
payment  therefor in accordance with the provisions of this  Agreement,  and the
shares of Common Stock  issuable upon  conversion  of the Warrants,  when issued
upon  such  conversion,  will  be duly  and  validly  issued,  fully  paid,  and
nonassessable.

                 3.6 Authority  for  Agreement.  The  execution,  delivery,  and
performance  by  Company  (and  Jaws  Canada)  of this  Agreement  and all other
agreements  required to be entered into pursuant to this  Agreement have been or
will be, on or prior to the Closing,  duly authorized by all necessary corporate
action,  and duly  executed and  delivered by Company  (and Jaws  Canada).  This
Agreement and such other agreements  constitute valid and binding obligations of
Company (and Jaws Canada) enforceable in accordance with their respective terms.
Except as set forth on Exhibit B hereto, the execution of and performance of the
transactions  contemplated  by this  Agreement  and such other  agreements to be
executed and  delivered by Company (and Jaws Canada)  hereunder  and  compliance
with  their  provisions  by  Company  (and Jaws  Canada)  will not  violate  any
provision  of law and will not  conflict  with or result in any breach of any of
the terms,  conditions or  provisions  of, or  constitute a default  under,  its
Articles of Incorporation or bylaws, any indenture,  lease,  agreement, or other
instrument  to which  Company or Jaws Canada is a party or by which it or any of
its  properties  is bound,  or any decree,  judgment,  order,  statute,  rule or
regulation applicable to Company (or Jaws Canada).

                 3.7 Governmental  Consents.  No consent,  approval,  order,  or
authorization of, or registration,  qualification,  designation, declaration, or
filing with, any  governmental  authority is required on the part of Company (or
Jaws Canada) in connection  with the  execution and delivery of this  Agreement,
the offer,  issue, sale and delivery of the Shares, or the other transactions to
be consummated at the applicable Closing, as contemplated by this Agreement. The
offer and sale of the Shares to Purchaser will be exempt from registration under
applicable foreign, federal and state securities laws.

                 3.8 Litigation.  Except as set forth on  Exhibit B, there is no
action, suit, proceeding, or investigation pending, or, to the best of Company's
(or Jaws  Canada's)  knowledge,  any basis  therefor or overt  threat in writing
thereof,  against  Company (or Jaws Canada) which questions the validity of this
Agreement or Company's  (or Jaws  Canada's)  right to enter into it, or which is
likely to result,  either  individually  or in the  aggregate,  in any  material
adverse change in Company's (or Jaws Canada's) assets,  condition  (financial or
otherwise),  business, or prospects, nor is there any litigation pending, or, to
the best of Company's (or Jaws Canada's) knowledge,  any basis therefor or overt
threat in writing  thereof,  against  Company (or Jaws  Canada) by reason of the
past  employment  relationships,  the  proposed  activities  of Company (or Jaws
Canada),  or negotiations by Company (or Jaws Canada) with possible investors in
Company (or Jaws Canada).

                 3.9 Financial Statements;  Absence of Liabilities. On or before
the date hereof,  Company has furnished to Purchaser a complete and correct copy
of  Amendment  No. 2 to Form SB-2 filed by the Company with the  Securities  and
Exchange Commission ("SEC") on April 30, 1999 Commission File No. 333-65583 (the
"SB-2") a copy of which is attached to this  Agreement as Exhibit F. The balance
sheets of Company and Jaws Canada (the "Balance  Sheets"),  the income statement
of Company and Jaws (the "Income Statements"), the statement of loss and deficit
and cash flows of the Company  and of Jaws Canada (the "Cash  Flows") as set

                                      -4-
<PAGE>

out in the SB-2 (collectively,  the "Financial Statements") are all complete and
correct, are in accordance with the books and records of Company and Jaws Canada
and present fairly the financial  condition and results of operations of Company
and Jaws Canada,  as of the dates and for the periods  indicated,  and have been
prepared in accordance  with generally  accepted  accounting  principles and the
rules and  regulations  of the SEC in all  material  respects.  Company and Jaws
Canada did not have, at the date of the SB-2,  any material  liabilities  of any
type  (other than  liabilities  incurred in the  ordinary  course of  business),
whether absolute or contingent, which were not fully reflected in the SB-2, and,
since the date of the SB-2, no material  change to Company and Jaws Canada's net
worth or Financial  Statements has occurred and the Company and Jaws Canada have
not incurred or otherwise  become subject to any such liabilities or obligations
except  in the  ordinary  course  of  business  and in  connection  with  and as
disclosed in this Agreement.

                 3.10    Taxes.   Company   and  Jaws   Canada  have  set  aside
sufficient  funds for the  payment of all  accrued  and unpaid  federal,  state,
provincial,  county, local, and foreign taxes for all current and prior periods.
Company  and  Jaws  Canada  have  filed  or have  obtained  presently  effective
extensions with respect to all federal,  state,  provincial,  county, local, and
foreign tax returns  which are required to be filed by it, such returns are true
and correct and all taxes due have been timely paid.  No United  States  federal
income tax return of Company and no Canadian  tax return of Jaws Canada has been
audited by the Internal  Revenue Service or Revenue  Canada,  and no controversy
with respect to taxes of any type is pending or, to  Company's or Jaws  Canada's
knowledge, threatened.

                 3.11    Property  and  Assets.  Each of Company and Jaws Canada
has good title to all of its  material  properties  and  assets,  including  all
material  properties  and assets  reflected in the Balance  Sheet,  except those
disposed of in the ordinary  course of business,  and none of such properties or
assets is subject to any  mortgage,  pledge,  lien,  security  interest,  lease,
charge, or encumbrance other than those  encumbrances  described in Exhibit B or
the Balance Sheet, if any.

                 3.12    Patents and Trademarks. Except as set forth on Schedule
B, Company or Jaws Canada owns good title,  free and clear of all liens,  claims
and encumbrances, to all of the patents, trademarks, service marks, trade names,
copyrights,  proprietary rights, trade secrets, processes, data and know-how and
licenses or rights to the foregoing, including but not limited to its encryption
algorithm (collectively,  the "Intellectual Property") necessary for the conduct
of  Company's  and Jaws  Canada's  business as  conducted  and as proposed to be
conducted.  The  Company  or Jaws  Canada is not aware of any facts  that  would
invalidate or render any Intellectual Property unenforceable.  All copyrightable
materials  created by the Company and Jaws  Canada are  entitled to  protections
under  applicable  United  States and Canadian  laws,  and all trade  secrets of
Company  and Jaws Canada are  entitled to  protection  under  applicable  United
States and Canadian  laws.  All  Intellectual  Property owned by the Company and
Jaws Canada and all trade  secrets  used by Company  and Jaws Canada  consist of
original  material  or  property  developed  by  Company  or Jaws  Canada or was
acquired by the Company or Jaws Canada from the proper and lawful owner thereof.
There are no licenses now  outstanding  or other rights granted to third parties
with respect to any Intellectual Property and neither the Company or Jaws Canada
is a party to any agreement or  understanding  with respect to any  Intellectual
Property. Except as set forth on Schedule B, none of the Company, Jaws Canada or
any business or activity conducted or proposed to be conducted by either (i) has
infringed upon or violated, (ii) is

                                      -5-
<PAGE>

infringing  upon or violates or (iii) will  infringe  upon or violate any of the
patents,  trademarks,  service marks, trade names,  copyrights,  licenses, trade
secrets or other proprietary  rights of any other person or entity, and no other
person is infringing upon or violating any of the Intellectual Property owned by
the  Company  and Jaws  Canada.  All  filings  or record  actions  necessary  or
appropriate  to  protect  the  interest  of  Company  and  Jaws  Canada  in  any
Intellectual  Property have been duly made and are in full force and effect.  No
employee  or  consultant  of  Company  and Jaws  Canada  owns  any  right in any
Intellectual  Property  or any  intellectual  property  directly  or  indirectly
competitive with any Intellectual  Property of Jaws Canada or derived from or in
connection with the conduct of their business.

                 3.13    Insurance.  Each of Company and Jaws  Canada  maintains
valid  policies of insurance  with respect to its properties and business of the
kinds and in amounts not less than is customarily  obtained by  corporations  or
entities of established  reputation  engaged in the same or similar business and
similarly  situated,  including,  without  limitation,  insurance  against loss,
damage,  fire, theft,  public  liability,  and  employment-related  accidents of
Company and Jaws Canada's  employees.

                 3.14    Material   Contracts  and   Obligations.   Company  has
disclosed in the SB-2 a list of all material  agreements  of any nature to which
Company and Jaws Canada is a party or by which it is bound,  including,  without
limitation,  (a) each agreement which requires future expenditures by Company or
Jaws  Canada  in  excess  of  $40,000  annually  in the  aggregate  (other  than
client/customer agreements entered into in the ordinary course of business), (b)
all employment and consulting  agreements,  employee  benefit,  bonus,  pension,
profit-sharing,   stock   option,   stock   purchase,   and  similar  plans  and
arrangements,  and distributor and sales representative agreements,  with annual
compensation  in excess of $100,000 per annum,  and (c) other than the lease for
the premises located at a1013 17 Avenue SW, Calgary,  Alberta,  any agreement to
which any stockholder,  officer,  or director of Company and Jaws Canada, or any
"affiliate"  or  "associate"  of such  persons (as such terms are defined in the
rules and  regulations  promulgated  under the  Securities  Act), is presently a
party, including any agreement or other arrangement providing for the furnishing
of services by, rental of real or personal property from, or otherwise requiring
payments to, any such person or entity. All of such agreements and contracts are
valid, binding and in full force and effect.

                 3.15    Compliance.  To Company's and Jaws Canada's  knowledge,
Company and Jaws Canada have, in all material respects,  complied with all laws,
regulations,  and orders applicable to their respective and proposed  businesses
and have all material permits and licenses required thereby. There is no term or
provision  of  any  material  mortgage,   indenture,   contract,  agreement,  or
instrument  to which  Company  or Jaws  Canada is a party or by which  either is
bound, or, to the knowledge of Company and Jaws Canada,  of any provision of any
state, provincial, federal or foreign judgment, decree, order, statute, rule, or
regulation  applicable  to  or  binding  upon  Company  or  Jaws  Canada,  which
materially  and adversely  affects or, so far as Company and Jaws Canada may now
foresee,  in the future is reasonably likely to materially and adversely affect,
the business,  prospects,  condition, affairs, or operations of Company and Jaws
Canada or any of their respective properties or assets.

                 3.16   Absence of  Changes.  Except as set forth in Exhibit B,
since the date of the SB-2  there  has been no  material  adverse  change in the
condition, financial or otherwise, net

                                      -6-
<PAGE>

worth,  or results of operations  of Company or Jaws Canada,  other than changes
occurring  in  the  ordinary  course  of  business,   which  changes  have  not,
individually or in the aggregate, had a material adverse effect on the business,
prospects,  properties, or condition, financial or otherwise, of Company or Jaws
Canada.

                 3.17    Employees.  Neither  Company  nor Jaws  Canada is aware
that any  employee of either is  obligated  under any  contract  (including  any
license,  covenant,  or commitment  of any nature),  or subject to any judgment,
decree,  or order of any court or  administrative  agency,  that would interfere
with the use of such employee's best efforts to promote the interests of Company
and Jaws Canada or would  conflict  with Company and Jaws  Canada's  business as
proposed to be conducted.  To Company's and Jaws  Canada's  knowledge,  no prior
employer of any  employee of Company or Jaws Canada has any right to or interest
in any inventions,  improvements,  discoveries, or other information assigned to
Company or Jaws Canada by such employee. All non-management employees of Company
and Jaws Canada who have access to  confidential  or proprietary  information of
Company or Jaws Canada  have  executed  and  delivered  proprietary  information
agreements with nondisclosure and assignment of invention provisions, and all of
such agreements are in full force and effect.

                 3.18    Books and Records.  To the  Company's and Jaws Canada's
knowledge  the minute  books of Company and Jaws  Canada  contain  complete  and
accurate records of all official  meetings and other corporate  actions of their
respective  stockholders and Boards of Directors and committees  thereof for all
activities  before March 1'st, 1998. The minute books of Company and Jaws Canada
contain  complete  and  accurate  records  of all  official  meetings  and other
corporate  actions of their respective  stockholders and Boards of Directors and
committees  thereof for all activities  after March 1, 1998. The stock ledger of
Company and Jaws Canada is  complete  and  reflects  all  issuances,  transfers,
repurchases and  cancellations  of shares of Company's and Jaws Canada's capital
stock.

                 3.19    Year 2000  Issues.  Company and Jaws have  reviewed the
areas within their business and operations which could be adversely affected by,
and have developed or are developing a program to address on a timely basis, the
risk that certain computer applications used by Company or Jaws (or any of their
respective material suppliers,  customers of vendors) may be unable to recognize
and perform properly date-sensitive functions involving dates prior to and after
December 31, 1999 (the "Year 2000  Problem").  All products and software sold by
Company or Jaws been fully  tested and the Year 2000 Problem will have no impact
on any product or software  sold by Company or Jaws.  The Year 2000 Problem will
have no impact on any product or software sold by Company or Jaws. The Year 2000
Problem is not  reasonably  expected to have a material  adverse effect upon the
business, properties, operations or financial condition of Company or Jaws.

                 3.20    Disclosures.  Neither  this  Agreement  nor any exhibit
hereto, the SB-2, and certain  historical  financial data furnished to Purchaser
in connection with the  transactions  contemplated by this Agreement,  when read
together, contains or will contain any material misstatement of fact or omits or
will omit to state a material fact  necessary to make the  statements  contained
herein  or  therein  not  misleading.  Company  and  Jaws  Canada  knows  of  no
information  or fact which has or would have a  material  adverse  effect on the
financial  condition,  business or prospects of Company or Jaws Canada which has
not been disclosed to Purchaser.

                                      -7-
<PAGE>

Notwithstanding  the  foregoing,  there  can  be no  assurance  that  any of the
projections, targets, or goals set forth in the Plan will be attained.

                 3.21    Broker or Finders  Fee.  The  Company  and Jaws  Canada
represent  and warrant to Purchaser  that it shall pay no more than  $105,000 in
the aggregate for any and all  consulting  fees or brokerage or finders' fees or
commissions  that the  Company  and Jaws  Canada may  become  liable to pay as a
result of the completion of the transactions contemplated by this Agreement.

         4.      Representations of Purchaser. Purchaser represents and warrants
to Company as follows:

                 4.1    Investment.  Purchaser is  acquiring  the Shares for its
own account  for  investment  and not with a view to, or for sale in  connection
with, any distribution  thereof,  nor with any present intention of distributing
or selling the same.  Except as  contemplated by this Agreement and the exhibits
hereto,  Purchaser  has  no  present  or  contemplated  agreement,  undertaking,
arrangement,   obligation,   indebtedness,   or  commitment  providing  for  the
disposition thereof.

                 4.2     Authority.  Purchaser  has full power and  authority to
enter into and perform this  Agreement in accordance  with its terms.  Purchaser
has not been organized specifically for the purpose of investing in Company.

                 4.3     Brokers or  Finders.  Purchaser  has not  retained  any
broker, finder or consultant,  nor is it aware of any broker, finder, consultant
who may have a claim for compensation as a result of this transaction.

         5.      Conditions to the Obligations of Purchaser.  The obligations of
Purchaser to purchase  the Shares at the Closing is subject to the  fulfillment,
or the waiver by Purchaser, of the following conditions on or before the Closing
Date (except as expressly provided herein):

                 5.1   Accuracy  of   Representations   and   Warranties.   Each
representation  and  warranty  contained in Section 3 shall be true on and as of
the Closing Date with the same effect as though such representation and warranty
had been made on and as of the Closing Date.

                 5.2   Performance.   Company   and  Jaws   Canada   shall  have
substantially   performed  and  complied  with  all  agreements  and  conditions
contained in this Agreement required to be performed or complied with by Company
or Jaws Canada prior to or at the Closing.

                 5.3  Opinion  of  Counsel.  Purchaser  shall have  received  an
opinion from Jeffer,  Mangels,  Butler & Marmaro LLP, counsel for Company, dated
the Closing Date,  addressed to  Purchaser,  and in  substantially  the form and
substance attached hereto as Exhibit D.

                 5.4  Investors'   Rights   Agreement.   The  Investors'  Rights
Agreement attached hereto as Exhibit E (the "Investors' Rights Agreement") shall
have been executed and delivered by Company and Purchaser.

                                      -8-
<PAGE>

                 5.5  Certificates  and  Documents.   All  corporate  and  other
proceedings  required to be taken on the part of Company to authorize  and carry
out this  Agreement  shall have been taken,  and Company shall have delivered to
legal counsel of Purchaser:

                      (a)   Articles   of   Incorporation.   The   Articles   of
Incorporation  of the Company and Jaws Canada  (including  all  certificates  of
designation in respect of any preferred stock of the Company or Jaws Canada), as
amended and in effect on or immediately prior to the Closing Date,  certified as
true and  correct by the  Secretary  of the Company  and the  President  of Jaws
Canada respectively.

                      (b) Good Standing  Certificates.  Certificates,  as of the
most recent  practicable  date prior to the Closing,  issued by the Secretary of
State  of the  State  of  Nevada  for  Company  and the  appropriate  provincial
authority for Alberta,  Canada for Jaws Canada, and the appropriate authority of
any other jurisdiction in which the failure to qualify Company or Jaws Canada to
do business as a foreign corporation would have a material adverse affect on the
operations  or financial  condition of Company or Jaws  Canada,  confirming  the
corporate  good  standing of each of Company  and Jaws Canada on or  immediately
prior to the Closing Date; and

                      (c)  Resolutions.  Resolutions  of the Board of  Directors
(and, where required,  the  stockholders)  of Company and Jaws,  authorizing and
approving all matters in  connection  with this  Agreement and the  transactions
contemplated hereby,  certified by an officer of Company and Jaws, respectively,
as of the Closing Date.

                 5.6   Other  Matters.  All corporate and other  proceedings  in
connection  with  the  transactions  contemplated  by  this  Agreement  and  all
documents  and  instruments  incident to such  transactions  shall be reasonably
satisfactory  in substance  and form to  Purchaser  and its legal  counsel,  and
Purchaser  and its  legal  counsel  shall  have  received  all such  counterpart
originals or certified or other copies of such  documents as they may reasonably
request.

                 5.7   SB-2. Company shall have delivered to Purchaser a copy of
the SB-2.

         6.     Conditions to the  Obligations of Company.  The  obligations of
Company  under  this  Agreement  are  subject to  fulfillment,  on or before the
Closing Date, of each of the following conditions:

                 6.1   Accuracy   of   Representations   and   Warranties.   The
representations and warranties of Purchaser contained in Section 4 shall be true
on  and  as  of  the   Closing   Date  with  the  same  effect  as  though  such
representations and warranties had been made on and as of the Closing Date.

                 6.2   Performance. Purchaser shall have substantially performed
and complied with all  agreements  and  conditions  contained in this  Agreement
required  to be  performed  or  complied  with by  Purchaser  prior to or at the
Closing.

         7.      Affirmative Covenants of Company.

                 7.1 Financial Statements and Other Information.

                                      -9-
<PAGE>

                 (a)     Financial  Statements  and  Budgets.  Company  and Jaws
Canada will deliver to Glentel Inc. ("Glentel") upon request:

                         (i) Within 90 days after the end of each fiscal year of
Company and Jaws  Canada,  a balance  sheet of Company and Jaws Canada as of the
end of such year and statements of income and of changes in financial  condition
of  Company  and Jaws  Canada  for such year (A)  prepared  in  accordance  with
generally accepted accounting principles consistently applied, (B) audited by an
independent accounting firm acceptable to Purchaser (the Purchaser hereby agrees
to accept any of Canada's top 4 accounting  firms,  by number of employees,  for
such audit),  and (C) including such other information as is necessary to verify
the financial condition of Company and Jaws Canada;

                         (i) Within 30 days after the end of each calendar month
(other than a calendar  month  during  which any fiscal year of Company and Jaws
Canada  ends),  an unaudited  balance sheet of Company and Jaws Canada as of the
end of such month and unaudited statements of income and of changes in financial
condition  of Company and Jaws Canada for such month and for the current  fiscal
year to the end of such month; and

                         (ii) As soon as  available,  but in any event within 30
days after  commencement  of each new fiscal  year,  a business  plan that shall
contain  projected  quarterly and annual financial  statements and quarterly and
annual operating and capital budgets for such fiscal year, which such plan shall
be submitted to Company and Jaws Canada's Board of Directors for approval within
such time.

           In  addition,  the Company  and Jaws Canada will  deliver to Glentel,
with reasonable promptness, such other information and financial data concerning
Company and Jaws Canada as Glentel may reasonably  request,  including,  without
limitation, quarterly and annual budgets and summaries of financial plans.

                 (b)   Preparation   and  Delivery.   The  foregoing   financial
statements  shall be prepared on a  consolidated  basis if Company  then has any
subsidiaries  and shall be accompanied by a certificate of an officer of Company
that, to the best knowledge of such officer,  Company is in compliance  with the
covenants  in this Section 7. The  financial  statements  delivered  pursuant to
clause (ii) of paragraph (a) also shall be  accompanied  by a certificate  of an
officer of Company that, to the best knowledge of such officer,  such statements
have been prepared in accordance with generally accepted accounting  principles,
consistently  applied  (except  as  noted),  and fairly  present  the  financial
condition  of Company at the date thereof and for the periods  covered  thereby,
subject to changes to reflect year-end adjustments.

                 7.3   Material  Changes and Litigation.  With respect to events
of which Company or Jaws Canada has knowledge,  Company and Jaws Canada promptly
will  notify   Purchaser  of  any  material  adverse  change  in  the  business,
properties,  assets,  or condition,  financial or otherwise,  of Company or Jaws
Canada and of any litigation or governmental proceeding or investigation pending
or, to Company or Jaws Canada's knowledge, overtly threatened in writing against
Company or Jaws  Canada,  or against any officer,  director,  key  employee,  or
principal  stockholder  of  Company  or Jaws  Canada  materially  and  adversely

                                      -10-
<PAGE>

affecting or which,  if adversely  determined,  would  materially  and adversely
affect its present or proposed business,  properties, assets, or condition taken
as a whole.

                 7.4  Nondisclosure  Agreements.  Company  and Jaws  Canada will
require all persons now or hereafter employed by Company or Jaws Canada who have
access to confidential  or proprietary  information of Company or Jaws Canada to
enter into Non-Disclosure Agreements,  unless the Board of Directors of Company,
by unanimous vote, elects to waive such requirement of an employee of Company or
Jaws Canada.

                 7.5 Observer Rights.  In addition to any director  nominated by
Purchaser  pursuant to its rights under the terms of the Common  Stock,  Company
will permit one authorized representative from Glentel to attend all meetings of
Company's Board of Directors.  Such representative  shall execute an appropriate
agreement to maintain the  confidentiality of all financial,  confidential,  and
proprietary  information  of Company  acquired by him or her in exercising  such
right.

                 7.6  Transactions  with  Affiliates.   Except  as  specifically
acknowledged and consented to in this Agreement,  Company will not, and will not
permit any  subsidiary  of Company  to,  directly or  indirectly  enter into any
transaction  or group of  related  transactions  with any  affiliate  of Company
except pursuant to the reasonable  requirements of Company's or the subsidiary's
business and upon fair and reasonable  terms no less favorable to Company or the
subsidiary  than would be obtainable in a comparable  arm's-length  transaction.
For  purposes of this  Section  7.6,  (a) a person that  directly or  indirectly
controls, is controlled by, or is under common control with another person is an
"affiliate" of such other person,  (b) the term "control"  means the possession,
directly or  indirectly,  of the power to direct or cause the  direction  of the
management  and policies of a person,  whether  through the  ownership of voting
securities,  by contract or otherwise,  and (c) a corporation or other entity, a
majority of the voting stock or equity  interests  having voting rights of which
is owned or controlled by Company, is a "subsidiary" of Company.

                 7.7  Post-Closing  Blue Sky Filings.  Company  agrees to timely
make all required  post-closing  filings,  if any, with United States state blue
sky authorities and all Canadian authorities.

         8.  Successors  and  Assigns.  Except as  provided  in  Section  9, the
provisions of this Agreement shall be binding upon, and inure to the benefit of,
the respective successors,  assigns,  heirs, executors and administrators of the
parties hereto.  Nothing in this Agreement,  express or implied,  is intended to
confer  upon  any  party  other  than the  parties  hereto  or their  respective
successors and assigns any rights, remedies,  obligations,  or liabilities under
or by reason of this Agreement, except as expressly provided in this Agreement.

         9. Confidentiality. Purchaser agrees that it will keep confidential and
will  not  disclose  or  divulge  any  confidential,   proprietary,   or  secret
information  which  Purchaser  may obtain from  Company  pursuant  to  financial
statements,  reports,  and other  materials  submitted  by Company to  Purchaser
pursuant to this  Agreement,  unless such  information  is known,  or until such
information becomes known through no fault of Purchaser, to the public.

                                      -11-
<PAGE>

         10.  Survival  of  Representations  and  Warranties.   All  agreements,
representations and warranties  contained herein shall survive the execution and
delivery  of this  Agreement  and the closing of the  transactions  contemplated
hereby.

         11. Expenses. Each party shall pay all its own legal and other expenses
with respect to the transaction.

         12. Notices. All notices, requests,  consents, and other communications
under this  Agreement  shall be in  writing  and shall be  delivered  by hand or
mailed by first class certified or registered  mail,  return receipt  requested,
postage prepaid, or by facsimile, receipt confirmed:

         If to  Purchaser,  at the  address  set forth on Schedule 1, or at such
         other address or facsimile number as may have been furnished to Company
         in writing by Purchaser, with a copy to such Purchaser's legal counsel,
         if any, as set forth on Schedule 1;

         If to  Company,  at 1013 17  Avenue  SW,  Calgary,  Alberta,  T2T  0A7,
         Attention:  Riaz  Mamdani,  Chief  Financial  Officer  or at such other
         address or facsimile  number as may have been furnished to Purchaser in
         writing by Company, with a copy to: Jeffer,  Mangels,  Butler & Marmaro
         LLP,  Tenth Floor,  212 Avenue of the Stars,  Los Angeles,  California,
         90067-5010, Attention: Jeffrey E. Sultan;

         If to Jaws  Canada at 1013 17 Avenue  SW,  Calgary,  Alberta,  T2T 0A7,
         Attention:  Riaz  Mamdani,  Chief  Financial  Officer  or at such other
         address or facsimile  number as may have been furnished to Purchaser in
         writing by Company, with a copy to: Jeffer,  Mangels,  Butler & Marmaro
         LLP,  Tenth Floor,  212 Avenue of the Stars,  Los Angeles,  California,
         90067-5010, Attention: Attention: Jeffrey E. Sultan;

Notices  provided in accordance  with this Section 12 shall be deemed  delivered
upon personal delivery,  three days after deposit in the mail, or upon facsimile
delivery.

         13. Brokers. The Company will indemnify and save the Purchaser harmless
from and against any and all claims, liabilities, or obligations with respect to
consulting  fees or brokerage or finders' fees or commissions in connection with
the  transactions  contemplated by this Agreement  asserted by any person on the
basis of any  statement  or  representation  alleged  to have  been  made by the
Company.

         14.  Compliance  and Further  Assurances.  Each party to this Agreement
agrees to execute  and  deliver,  or cause to be  executed  and  delivered,  all
certificates,  instruments,  agreements,  and other documents contemplated to be
executed and  delivered  on or before the Closing Date and such other  documents
and  instruments  as may be  requested  by such other  party to  consummate  the
transactions contemplated by this Agreement.

         15. Entire Agreement.  This Agreement embodies the entire agreement and
understanding  between the parties  hereto  with  respect to the subject  matter
hereof and supersedes all prior agreements and  understandings  relating to such
subject matter.

         16. Amendments and Waivers.  Except as otherwise expressly set forth in
this Agreement,  any term of this Agreement may be amended and the observance of
any term of this

                                      -12-
<PAGE>

Agreement may be waived (either generally or in a particular instance and either
retroactively  or  prospectively)  with the  written  consent of Company and the
holders of at least a majority of the Shares.  Any amendment or waiver  effected
in  accordance  with this  Section 17 shall be binding  upon each  holder of any
Shares  (including  shares of Common  Stock  into which  such  Shares  have been
converted),  each future holder of all such securities,  and Company. No waivers
of or exceptions to any term, condition,  or provision of this Agreement, in any
one or more  instances,  shall be deemed to be, or  construed  as, a further  or
continuing waiver of any such term, condition, or provision.

         17.   Counterparts.   This   Agreement   may  be  executed  in  several
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.

         18. Headings; Exhibits. The headings of the sections,  subsections, and
paragraphs of this Agreement have been added for convenience  only and shall not
be deemed to be a part of this  Agreement.  The  exhibits  attached  hereto  are
incorporated herein by reference and part and parcel of this Agreement.

         19. Severability. If any provision of this Agreement or the application
thereof to any person or circumstance  shall be invalid or  unenforceable to any
extent,  the remainder of this Agreement and the  application of such provisions
to other  persons or  circumstances  shall not be affected  thereby and shall be
enforced to the greatest extent permitted by law.

         20. Equitable  Remedies.  The rights and remedies of any of the parties
hereto shall not be mutually exclusive (i.e., the exercise of one or more of the
provisions  hereof  shall not  preclude  the  exercise  of any  other  provision
hereof).  Each party  acknowledges  and confirms  that its breach or  threatened
breach of this Agreement may cause irreparable  injury to the one or more of the
other  parties  for which  damages at law  (i.e.,  monetary  damages)  may be an
inadequate  remedy and agrees that,  in such event,  the  respective  rights and
obligations hereunder shall be enforceable by specific performance,  injunction,
or other equitable remedy;  provided,  however, that nothing herein contained is
intended  to,  nor  shall it,  limit or affect  any right or rights at law or by
statute or otherwise of any party aggrieved as against the other for a breach or
threatened breach of any provision hereof, it being the intention hereof to make
clear the agreement of the parties that the respective rights and obligations of
the  parties  hereunder  shall be  enforceable  in  equity  as well as at law or
otherwise.

         21.     Interpretation.

                 21.1 Directly or  Indirectly.  Any provision of this  Agreement
which refers to an action which may be taken by a party hereto, or which a party
hereto is prohibited  from taking,  shall include any such action taken directly
or  indirectly  by or on behalf of such party,  including by or on behalf of any
affiliate or agent of such party.

                 21.2 No  Presumption.  In the event any claim is made by either
party hereto relating to any conflict, omission, or ambiguity in this Agreement,
no  presumption  or burden of proof or persuasion  shall be implied by virtue of
the fact that this  Agreement  was prepared by or at the request of a particular
party or its counsel.

                                      -13-
<PAGE>

                 21.3  References to this  Agreement.  References to numbered or
lettered  articles,  sections,  and subsections refer to articles,  sections and
subsections, respectively, of this Agreement unless otherwise expressly stated.

                 21.4  Person.  Except as otherwise  expressly  provided in this
Agreement,  all  references  to the  word  "person"  in this  Agreement  include
individuals,  partnerships,  corporations,  limited liability companies, trusts,
and any other legal entities or associations.

         22.  Governing Law. This  Agreement,  the rights and obligations of the
parties hereto and their successors and assigns hereunder, shall be interpreted,
construed,  and enforced in accordance with the laws of the Province of Alberta,
Canada,  excluding any  conflict-of-laws  rule or principle that might refer the
governance or construction of this Agreement to the law of another jurisdiction.

         IN WITNESS WHEREOF, the undersigned have hereunto set their hands as of
the day and year first above written.

                                     COMPANY:

                                     JAWS TECHNOLOGIES, INC.

                                     By: _______________________________________
                                         Name:__________________________________
                                         Title:________________________________

                                     JAWS CANADA:

                                     JAWS TECHNOLOGIES, INC.

                                     By:  _________________________________
                                          Name:____________________________
                                          Title:___________________________

                                     PURCHASER:

                                     GLENTEL, INC

                                     By:___________________________________
                                        Name:______________________________
                                        Title:_____________________________

                                      -14-
<PAGE>

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------
                                          SCHEDULE 1
---------------------------------------------------------------------------------------------

    INVESTOR                           NUMBER OF SHARES OF   NUMBER OF
                                          COMMON STOCK        WARRANTS      CONSIDERATION
---------------------------------------------------------------------------------------------
<S>                                        <C>                <C>       <C>
Glentel Inc.                               1,000,000          834,000       $1,500,008.34
Suite 2700
4710 Kingsway Court                                                      ($1.5 per Share and
Burnaby, British Columbia                                                $.00001 per Warrant)
V5H 4M2

Attention:  Thomas E. Skidmore

Legal Counsel
Blackwell Sanders Peper Martin LLP
2300 Main Street, Suite 1000
Kansas City, Missouri  64108
Attention:  James A. Ash, Esq.
---------------------------------------------------------------------------------------------
</TABLE>

                                      -15-
<PAGE>

                                    EXHIBIT A

                      Terms of the Capital Stock of Company

                                      -16-
<PAGE>

                                    EXHIBIT B

                     Exceptions to Company's Representations

                                      -17-
<PAGE>

                                    EXHIBIT C

                                Stockholder List

                                      -18-
<PAGE>

                                    EXHIBIT D

                                  Legal Opinion

                                      -19-
<PAGE>

                                    EXHIBIT E

                           Investors' Rights Agreement

                                      -20-
<PAGE>

                                    EXHIBIT F

                                      SB-2

                                      -21-

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