Document:

Exhibit 10.5

                            STOCK PURCHASE AGREEMENT
                            ------------------------

         THIS STOCK PURCHASE  AGREEMENT is entered into effective as of March 6,
2000, by and among TSET, Inc., a Nevada corporation ("TSET"); Atomic Soccer USA,
Ltd., a Wisconsin corporation ("ASUSA"); Todd P. Ragsdale, an individual;  James
Eric Anderson, an individual; Jewel Anderson, an individual;  Timothy Beglinger,
an  individual;  and  Atomic  Millennium  Partners,  LLC,  a  Wisconsin  limited
liability  corporation (Todd P. Ragsdale,  James Eric Anderson,  Jewel Anderson,
Lorena Anderson,  Timothy  Beglinger,  and Atomic Millennium  Partners,  LLC are
hereinafter collectively referred to as the "Stockholders"), and is acknowledged
and agreed by certain employees of ASUSA (the "Employees").

         WHEREAS,  on December 9, 1999,  TSET and ASUSA entered into a letter of
Intent for the purpose  of,  among other  things,  setting  forth the main terms
pursuant  to which TSET  would  acquire  all of the  shares of ASUSA,  and other
elements of the relationship of the parties;

         WHEREAS,  the  Stockholders  are the  owners of all of the  issued  and
outstanding capital stock of ASUSA; and

         WHEREAS,  the  Stockholders  wish to sell, and TSET wishes to purchase,
all of the issued and  outstanding  capital  stock of ASUSA,  upon the terms and
subject to the conditions set forth herein.

         NOW,  THEREFORE,  for and in  consideration  of the premises and mutual
covenants, promises,  representations,  and warranties set forth herein, and for
other good and valuable consideration, the sufficiency, delivery, and receipt of
which are hereby acknowledged, the parties hereto agrees as follows:

         1.  PURCHASE  AND SALE OF  SHARES.  Upon the terms and  subject  to the
conditions set forth herein,  the  Stockholders  each agree to sell to TSET, and
TSET agrees to purchase from each of the  Stockholders,  all of the ASUSA shares
owned by each  Stockholder  which are hereby  represented  and warranted by each
Stockholder  as of the  date of  this  Agreement  to  consist  of the  following
(collectively, the "Atomic Shares"):

<TABLE>
NAME                                    CLASS A VOTING SHARES         CLASS B NON-VOTING SHARES
----                                    ---------------------         -------------------------
<S>                                                 <C>                               <C>
Todd P. Ragsdale                                    18.8125                           253.125
James Eric Anderson                                 29.945                            489.5625
Jewel Anderson                                      15.13                             210.9375
Timothy Beglinger                                   13.7625                           185.625
Atomic Millennium Partners, LLC                     10.1                              135.0

TOTALS                                              87.75                           1,274.25
------                                              -----                           --------
</TABLE>

The Atomic  Shares shall be sold to and  purchased by TSET free and clear of any
and  all  liens,  claims,  encumbrances,  sureties,  restrictions  of  any  kind

<PAGE>

whatsoever  on their  free  transferability,  options,  or  rights  of any third
parties,  including preemptive rights or claims of any nature whatsoever as well
as all rights attaching thereto.

         2.  CONSIDERATION  FOR THE ATOMIC SHARES;  EXCHANGE OF SHARES.  (a) The
aggregate  consideration  to be paid  for the  Atomic  Shares  by TSET  shall be
1,000,000  "investment" shares of the common stock of TSET, par value $0.001 per
share  (the  "TSET  Shares"),  to be  allocated  on a pro rata  basis  among the
Stockholders and the Employees as follows:

Todd P.  Ragsdale                                 196,660 TSET Shares
James Eric  Anderson                              380,355 TSET Shares
Judi Anderson                                     163,883 TSET Shares
Timothy  Beglinger                                144,217 TSET Shares
Atomic Millennium  Partners,  LLC                 104,885  TSET Shares
Jonathan  Beglinger                               3,500 TSET Shares
Michael  Santry                                   3,500 TSET Shares
Suzanne May                                       2,000 TSET Shares
Thomas Bates                                      500 TSET Shares
Sterling Anderson                                 500 TSET Shares

The TSET  Shares  shall be the sole  compensation  for the Atomic  Shares of the
Stockholders.

             (b)   Simultaneously  with  the  execution  and  delivery  of  this
Agreement by the parties:

                       (i)    each of the  Stockholders  shall  deliver  to TSET
certificates representing all of the Atomic Shares owned by them, accompanied by
appropriate stock powers endorsed in blank, and shall cause the Atomic Shares to
be registered  in TSET's name on ASUSA's share  registry and perform any and all
other actions  required by applicable  law to evidence  TSET's  ownership of the
Atomic Shares; and

                       (ii)    TSET  shall deliver  to each of the  Stockholders
certificates  representing the number of TSET Shares to be acquired by them, and
shall  cause  the  TSET  Shares  to be  registered  in the  names of each of the
Stockholders  on TSET's  share  registry  and perform any and all other  actions
required  by  applicable  law to evidence  ownership  of the TSET Shares by each
Stockholder.

Immediately  following the exchange of shares  contemplated  in this  Subsection
(b),  TSET shall own 100% of  ASUSA's  shares  and ASUSA  shall be  wholly-owned
subsidiary of TSET.

             (c)   The Stockholders  understand and acknowledge that the TSET
Shares shall be subject to, and the  Stockholders  agree to at all times observe
and comply with, any and all conditions,  limitations, and restrictions noted on
the  certificates  representing  the  TSET  Shares,  in  addition  to any  other
restrictions  set forth in applicable  federal and state  securities  laws.  Any
taxes,  levies,  or other charges  assessed  against,  or in connection with the
acquisition of, the TSET Shares by each  Stockholder  pursuant to this Section 2
shall  be for  the  account  of,  and  shall  be  borne  solely  by,  each  such
Stockholder.

                                       2
<PAGE>

                  (d) Any  compensation  or finder's fee payable by ASUSA or the
Stockholders  (or  any of  them)  to any  person  relating  to the  transactions
contemplated  by this  Agreement  shall  be paid out of the  TSET  Shares  to be
received by them,  the parties  agreeing  that TSET shall have no  financial  or
other responsibility whatsoever for payment of any such compensation.

         3.  MANAGEMENT.  (a) Following TSET's acquisition of the Atomic Shares.
ASUSA's board of directors shall be comprised of the following individuals:

             Todd P. Ragsdale
             James Eric Anderson
             Timothy Beglinger
             Jeffrey D. Wilson (serving as chairman of the board of directors
             and representing TSET)

Such directors shall serve in accordance with ASUSA's bylaws and applicable law.
In the event of any tie  concerning  any matter  brought before ASUSA's board of
directors for a vote,  Jeffrey D. Wilson, as chairman of the board of directors,
shall have the tie-breaking vote.

             (b)   Following TSET's  acquisition of the Atomic  Shares,  ASUSA's
officers and  executive management shall be comprised as follows:

                  Todd Ragsdale                    President
                  James Eric Anderson              Vice-president
                  Timothy Beglinger                Secretary and Treasurer

             (c)   The parties agree that the primary responsibility for ASUSA's
day-to-day  management,  business  development,  finances and the administration
thereof,  budgets  (capital,  operations,  and  others),  and the conduct of the
Corporate  Business  (as defined in Section 4 hereof),  shall  belong to ASUSA's
board of  directors,  but with  such  consultations  and  determinations  as are
consistent with TSET's ownership of ASUSA. In carrying out such responsibilities
and  conducting  all  elements  of the  Corporate  Business,  ASUSA's  board  of
directors  shall  at all  times  conduct  themselves  according  to the  highest
fiduciary  standards of good faith and sound business  judgment,  exerting their
individual and collective best efforts to pursue the Corporate Business, seeking
to advance the best  interests of ASUSA,  complying  with all laws,  rules,  and
regulations applicable to the Corporate Business, and keeping available to ASUSA
the  services of its  directors,  officers,  and key  employees.  The  Corporate
Business  shall be  conducted  by ASUSA's  board of directors in the regular and
ordinary course in substantially the manner heretofore conducted.  The directors
and officers of ASUSA, individually and collectively,  shall dedicate their full
time attention and efforts to the conduct of the Corporate  Business,  except as
may be otherwise permitted by ASUSA's board of directors.

             (d)   The parties  acknowledge  that they are unable to  anticipate
and provide herein for every  situation and  contingency  which may arise during
the conduct of the  Corporate  Business.  Accordingly,  the  parties  agree that
principles of good faith and fair dealing will govern their conduct at all times
and that best efforts will be exerted to amicably and expeditiously  resolve any
dispute  arising  hereafter,  all with a view to seeking to advance ASUSA's best
interests and maximize the value of ASUSA's business enterprise.

                                       3
<PAGE>

         4.  THE CORPORATE BUSINESS. The parties understand and acknowledge that
the "Corporate  Business" of ASUSA is the  distribution  of soccer uniform under
the  "Atomic"  brand  label and  basketball,  volleyball,  lacrosse,  and hockey
uniforms  under the "BAHR"  brand label,  primarily  through  independent  sales
representatives.  TSET intends that the Corporate Business shall be conducted in
substantially  the same manner as conducted  prior to TSET's  acquisition of the
Atomic Shares, and that the Corporate Business shall also include the pursuit of
such other  activities as ASUSA's board of directors may determine  from time to
time including,  without limitation,  recruitment of additional distributors for
the  "Atomic"  and  "BAHR"  brand  labels  and  expansion  of  the  geographical
territories  in which  ASUSA's  products are  marketed,  distributed,  and sold;
potential    acquisition   of   additional    sports   apparel   and   equipment
distributorships  and  expansion of ASUSA's  current  product lines to achieve a
greater  diversity;  protect ASUSA's  trademarks,  tradenames,  label names, and
other valuable  rights;  and such other  activities as may enhance the value and
name  recognition of the "Atomic" and "BAHR" labels,  all with a view to advance
ASUSA's best interests and maximize  ASUSA's  profitability  and success for the
benefit  of TSET.  In  addition,  as soon as  practicable  TSET  intends to give
favorable  consideration to the acquisition of ASUSA's  maquiladora  cut-and-sew
facility (Atomic S.A. de C.V.) in Ensenada, Mexico.

         5.  CONTRIBUTIONS  BY TSET:  CLAW-BACK.  (a)(i)  TSET shall  assist and
support ASUSA's  capital-raising efforts and shall provide and make available to
ASUSA  working  capital  in the  aggregate  amount of up to  $1,000,000.00  (the
"Initial  Funding")  over the 12-month  period next  following the execution and
delivery of this Agreement  (the "Funding  Period").  ASUSA hereby  acknowledges
that  TSET  has,  prior to the date of this  Agreement,  provided  and ASUSA has
received a portion of the Initial Funding in the amount of  $125,125.00.  To the
extent required, TSET shall use its own shares in order to arrange for, procure,
and ensure availability of the Initial Funding;  provided,  however, that TSET's
obligation  to  provide  the  Initial  Funding  shall  not  be  construed  as or
constitute  any  assumption  of  any  obligation   regarding  any  indebtedness,
operating expenses,  or other financial liabilities of ASUSA or the Stockholders
including,  without  limitation,  those financial  obligations  owed to David M.
Ragsdale or Paul Hix as described  in Exhibit 5 attached  hereto and made a part
hereof for all  purposes.  Provision  of the Initial  Funding  shall be the sole
financial  obligation owed by TSET to ASUSA;  provided,  however,  that TSET may
elect,  but is not  obligated,  to provide to ASUSA  funding in  addition to the
Initial  Funding in  appropriate  cases to be determined by TSET in its sole and
absolute  discretion.  Within  10 days of the  execution  and  delivery  of this
Agreement,  ASUSA's  board of directors  shall  establish  an operating  budget,
including  provision  for,  among  other  things,  the prudent  expenditure  and
conservation  of funds  for  working  capital  over  the  Funding  Period  while
achieving the overall goals of the Corporate Business.

                       (ii)    TSET   acknowledges   that  ASUSA  currently  has
outstanding a $500,000  revolving line of credit,  and that the guaranty thereof
provided by David M.  Ragsdale  must be replaced on or before June 30, 2000 (the
"Replacement  Date").  TSET hereby agrees to exert its best efforts to retire or
renew  such  line  of  credit  with  replacement  guaranties  on or  before  the
Replacement Date.

             (b)(i) The parties  acknowledge that TSET's  undertaking to provide
the Initial Funding is a significant inducement to ASUSA and the Stockholders to
enter into this Agreement and consummate the transactions  contemplated  herein,
and that on or before the lapse of the Funding  Period TSET shall have  provided

                                       4
<PAGE>

to ASUSA the entire  amount of the Initial  Funding.  In the event TSET provides
less  than all of the  Initial  Funding  by or before  the lapse of the  Funding
Period,  ASUSA shall provide written notice to TSET that an event of default has
occurred hereunder (the "Default  Notice").  If TSET fails to provide the unpaid
portion of the Initial  Funding to ASUSA within 45 days of TSET's receipt of the
Default  Notice (the "Cure  Period"),  the number of Atomic Shares owned by TSET
shall be reduced to  reflect  the  proportionate  value of the  Initial  Funding
provided by TSET to ASUSA,  with the number of the Atomic  Shares  deducted from
TSET's holding to be transferred to and distributed  among the Stockholders on a
pro rata basis (the "Share Adjustment"). The Share Adjustment shall occur within
10 days following  lapse of the Cure Period if TSET fails during the Cure Period
to provide the unpaid portion of the Initial Funding.

                       (ii)    If TSET  fails to  provide  any  Initial  Funding
prior to the lapse of the Funding  Period and the  resulting  Cure Period,  this
Agreement  shall be  terminated  and deemed null and void and the Atomic  Shares
shall be assigned,  transferred,  and conveyed by TSET to the  Stockholders,  as
they may direct in writing to TSET.

             (c)   If TSET fails to provide  any  Initial  Funding  prior to the
lapse of the Funding  Period and the resulting  Cure Period,  the sole remedy of
ASUSA and the Stockholders shall be:

                       (i)     the  Share  Adjustment  (in  case  of the  events
described in Subsection (b)(i) above); and

                       (ii)    the termination of this Agreement and assignment,
transfer,  and conveyance to ASUSA and the Stockholders of the Atomic Shares (in
case of the events described in Subsection (b)(ii) above).

No party  shall  have any  liability  to the other for  monetary  damages of any
description whatsoever including, without limitation, incidental, consequential,
or punitive damages.

         6.  OPTIONS AND OTHER PROGRAMS.  TSET intends to adopt for itself,  and
intends that ASUSA adopt, stock option, incentive, profit-sharing,  savings, and
other similar programs (the  "Programs"),  as soon as practicable after the date
hereof.  The terms and  conditions  of  participation,  contribution,  matching,
vesting,  and  other  elements  of the  Programs  shall  be  established  by the
respective boards of directors of TSET and ASUSA.  ASUSA's directors,  executive
management, and key employees (collectively,  "management") shall be entitled to
participate  in  Programs  adopted  by  TSET,   subject  to  any  conditions  or
restrictions  imposed on such participation by TSET's board of directors.  As an
additional inducement to management and to ensure participation by management in
the future success of ASUSA,  TSET, as sole stockholder of ASUSA,  hereby agrees
to reserve up to 20% of ASUSA's  authorized capital stock to be used in Programs
to  be  adopted  by  ASUSA's  board  of  directors  and  consents  to  the  full
participation of management therein, subject to the terms for such participation
established  by ASUSA's board of directors;  provided,  however,  that the final
terms of the Programs  adopted by ASUSA's board of directors shall be subject to
TSET's prior written consent,  which consent shall not be unreasonably withheld,
conditioned, or delayed.

                                       5
<PAGE>

         7.  FUTURE  EVENTS.  At an appropriate and mutually  agreed time in the
future,  TSET  intends to give due and good faith  consideration  to effecting a
transaction  pursuant  to which  ASUSA may become a  publicly-owned  entity (the
"Reconstitutive  Decision");  provided, however, that a decision to retain ASUSA
as a  wholly-  or  majority-owned  subsidiary  of TSET or  effect a  transaction
pursuant to which ASUSA's  ownership  materially  changes but remains  privately
held  shall  not be  deemed  a breach  of this  Section  7. In the  event of any
Reconstitutive  Decision,  TSET (or its  nominees)  shall retain not less than a
non-dilutible 20% ownership interest in ASUSA.

         8.  REPRESENTATIONS  AND WARRANTIES  OF  ASUSA  AND  THE  STOCKHOLDERS.
ASUSA and each of the  Stockholders, jointly and severally, hereby represent and
warrant to TSET as follows:

             (a)   CORPORATE  ORGANIZATION.  ASUSA  is duly  organized,  validly
existing,  and in good standing under the laws of the State of Wisconsin and has
all requisite power, authorizations, consents, and approvals necessary to own or
lease its assets and carry on its business as currently being conducted,  and to
consummate  the  transactions  contemplated  herein.  ASUSA is duly  licensed or
qualified  and in good standing in all  jurisdictions  in which the character of
the properties  owned or leased by it or the nature of its business  requires it
to be so licensed or qualified.  Complete and correct copies of all constitutive
documents of ASUSA have been  delivered to TSET.  ASUSA's  minute books or other
similar  records  contain an accurate record of all meetings and other corporate
action of its stockholders and board of directors (and any committees thereof).

             (b)   NO DEFAULTS OR BREACHES.  Except as disclosed in Exhibit 8(b)
attached  hereto and made a part hereof for all purposes,  neither the execution
of  this  Agreement  nor  the  performance  of  its  obligations  hereunder  and
thereunder does or will:

                       (i)     conflict with or violate any provision of ASUSA's
constituent documents;

                       (ii)    violate,  conflict  with, or result in the breach
or termination of, or constitute a default,  event of default (or an event which
with  notice,  lapse of time,  or both,  would  constitute a default or event of
default), under the terms of any

                               (A)  contract,  agreement,  commitments, or other
binding  undertakings,   whether  or  not  reduced  to  writing   (collectively,
"Contracts"), or

                               (B)  permits,     authorizations,      approvals,
registrations,  or  licenses  granted  by or  obtained  from  any  governmental,
administrative, or regulatory authority (collectively, "Permits"),

to which ASUSA or any of the Stockholders is a party or by which ASUSA or any of
the  Stockholders  or  any  of  their   respective  or  collective   securities,
properties, or businesses are bound;

                       (iii)   constitute  a  violation  by  ASUSA or any of the
Stockholders of any

                                       6
<PAGE>

                               (A)  laws,   rules,   or   regulations   of   any
governmental, administrative, or regulatory authority (collectively, "Laws"), or

                               (B)  judgments, orders, rulings, or awards of any
court,   arbitrator,   or  other   judicial   authority  or  any   governmental,
administrative, or regulatory authority (collectively, "Judgments"); or

                       (iv)    result  in the  creation  of any lien,  claim, or
encumbrance  (collectively, "Liens" upon ASUSA, the Atomic Shares, or any of the
Stockholders.

             (c)   ACTIONS AND PROCEEDING. Except as disclosed in Exhibit 8(c-i)
attached  hereto and made a part hereof for all purposes,  there are no actions,
suits,  claims,  or legal,  administrative,  arbitration,  or other  alternative
dispute resolution proceedings or investigations  (collectively,  "Proceedings",
(whether or not the defense thereof or liability with respect thereto is covered
by policies of insurance)  pending or, to the best knowledge of ASUSA and any of
the Stockholders,  threatened,  to which ASUSA or any of the Stockholders is our
would be a party,  including,  without  limitation,  any Proceeding  which could
reasonably  be expected to restrain,  prevent,  or prohibit  ASUSA or any of the
Stockholders  from  consummating the  transactions  contemplated  herein,  or to
obtain damages or other relief in connection  with, this Agreement or any of the
transactions contemplated herein. Except as disclosed in Exhibit 8(c-2) attached
hereto and made a part hereof for all purposes, there is no Judgment outstanding
against ASUSA or any Stockholder.

             (d)   NO BROKERS.  Except as  disclosed  in Exhibit  8(d)  attached
hereto and made a part hereof for all  purposes,  all  negotiations  relating to
this  Agreement and the  transactions  contemplated  herein have been carried on
without the  intervention  of any party  acting in behalf of ASUSA or any of the
Stockholders  in such manner as to give rise to any valid claim against ASUSA or
any of the  Stockholders,  individually  or  collectively,  for any  broker's or
finder's fee or similar  compensation  (whether payable in cash,  Atomic Shares,
any interest in ASUSA,  or otherwise) in connection  therewith.  No basis exists
whatsoever for any such broker's or finder's fee or similar  compensation  to be
payable by TSET.

             (e)   AUTHORITY.  ASUSA  has  all  necessary  corporate  power  and
authority,  and each of the  Stockholders  have the power,  legal capacity,  and
authority, to execute,  deliver, and perform its obligations hereunder;  and the
execution,  delivery,  and performance by ASUSA and each of the  Stockholders of
this Agreement has been duly authorized by all necessary corporate action on its
part or is within the authority of the person executing and delivering the sane,
and is  within  the  authority  of  each  of the  Stockholders.  This  Agreement
constitutes the legal,  valid, and binding  obligations of ASUSA and each of the
Stockholders,  enforceable  against any and all of them in  accordance  with the
terms thereof,  except as may be limited by applicable  bankruptcy,  insolvency,
reorganization,  or other similar laws affecting  creditors'  rights and general
principles of equity.

             (f)   TAXES AND TAX RETURNS.  Except as disclosed in Exhibit 8(f-1)
attached hereto and made a part hereof for all purposes:

                                       7
<PAGE>

                       (i)     ASUSA  has filed  all  tax  returns  and  reports
of all Taxes (as hereinafter  defined) required to be filed by it and has timely
given and delivered all Tax notices,  accounts,  and information  required to be
given by it with respect to Taxes for which ASUSA may be liable. All information
provided in such returns, reports, notices,  accounts, and information was, when
filed or given,  complete and accurate.  All Taxes  required to be paid by ASUSA
that were due and payable prior to the date of this  Agreement have been paid in
full,  except for such taxes as are being contested in good faith by appropriate
proceedings  and for which  adequate  reserves  are being  maintained.  Adequate
provisions  in  accordance  with  generally   accepted   accounting   principles
consistently  applied  have been made in ASUSA's  financial  statements  for the
payment  of all Taxes for which  ASUSA  may be liable  for the  periods  covered
thereby that were not yet due and payable as of the date thereof,  regardless of
whether the liability for such Taxes is disputed;

                       (ii)    There  are no  pending or,  to the best knowledge
of ASUSA and each Stockholder,  threatened, audits or investigations relating to
any  Taxes  for which  ASUSA  may  become  directly  or  indirectly  liable.  No
deficiencies  for any Taxes have been proposed,  asserted,  or assessed  against
ASUSA and no state of facts exists or has existed that would constitute  grounds
for the assessment of a Tax liability against ASUSA.  There are no agreements in
effect to extend the period of  limitations  for the assessment or collection of
any  Taxes for  which  ASUSA may  become  liable  and no  requests  for any such
agreements are pending;

                       (iii)   Except as  disclosed in  Exhibit 8(f-2)  attached
hereto and made a part  hereof for all  purposes,  ASUSA has  withheld  from its
employees  and timely  paid to the  appropriate  authority  proper and  accurate
amounts for all  periods  through  the date  hereof in  compliance  with all Tax
withholding provisions of all applicable federal, state, and local laws;

                       (iv)    All  copies of all  returns  and  reports  of all
Taxes filed by ASUSA on or prior to the date of this Agreement, provided or made
available to TSET by ASUSA, are complete and accurate; and

                       (v)     ASUSA has neither  elected,  nor  otherwise  been
granted, any preferential tax treatment or made any sort of commitment vis-a-vis
any Tax authorities, whether in connection with a reorganization or otherwise.

As used in this  Subsection  (f),  the terms  "Tax"  shall  mean (A) all  taxes,
assessments,  levies,  imposts,  duties,  fees,  withholdings,  or other similar
mandatory charges, including, without limitation, income taxes, franchise taxes,
transfer taxes or fees, sales taxes, excise taxes, ad valorem taxes, withholding
taxes, minimum taxes, estimated taxes, and social charges or contributions;  and
(B) any interest,  penalties,  or additions to tax imposed on a Tax described in
clause (A) above, imposed by an national, regional, local, or foreign government
or subdivision or agency thereof.

             (g)   CONSENTS. Except as disclosed in Exhibit 8(g) attached hereto
and made a part  hereof  for all  purposes,  no  authorizations,  approvals,  or

                                       8
<PAGE>

consents of, and no filings or registrations  with, any  governmental  agency or
authority are necessary for the execution,  delivery,  and  performance by ASUSA
and  each  of the  Stockholders  of  this  Agreement  or  for  the  validity  or
enforceability hereof.

             (h)   SUFFICIENCY   OF    INFORMATION   No   material    statement,
information, or exhibit disclosed or otherwise furnished to TSET by ASUSA or any
of the Stockholders in connection with the negotiations among the parties or any
representations  upon  which  TSET  may  have  relied,   contains  any  material
misstatement  of fact or omits to state a material fact or any fact necessary to
make the statement made not misleading.

                       (i)     COMPLIANCE  WITH  LAW.  ASUSA  and  each  of  the
Stockholders   shall  at  all  times  hereunder   comply  with  all  conditions,
restrictions,  and limitations  applicable to the TSET Shares and the provisions
of all  federal  and state  securities  laws  applicable  to the  ownership  and
transfer thereof.

             (j)   COMPENSATION  MATTERS.  Except as  disclosed  in Exhibit 8(j)
attached  hereto  and made a part  hereof for all  purposes,  no oral or written
compensation  arrangement  or  agreement  exists,  and no  shares  or units  (or
warrants or options to acquire the same),  or revenue  interests,  or  royalties
have been  granted,  orally or in  writing,  or are owned by,  ASUSA's  board of
directors, employees, or any Stockholder.

             (k)   INTELLECTUAL PROPERTY. (i) Exhibit 8(k-1) attached hereto and
made a part hereof for all purposes  sets forth an accurate and complete list of
the following:

                               (A)  all registered or  unregistered  trademarks,
trademark applications,  servicemarks,  servicemark applications, assumed names,
trade names,  and brand label names used or held by ASUSA in connection with its
operations  and  intended  conduct  of  the  Corporate  Business  (collectively,
"Trademarks"),  indicating  for each  Trademark  whether it is owned or licensed
from a third party and whether the Trademark is licensed to any third party; and

                               (B)  all  patents  registered  or applied  for by
ASUSA or licensed from a third party, indicating for each such patent whether it
is owned or licensed  from a third party and whether  such patent is licensed to
any third party.

                       (ii)    The  Trademarks  and  patents  listed in  Exhibit
8(k-1) have been duly  registered  or filed with the  appropriate  trademark and
patent authority for each of the jurisdictions  indicated in Exhibit 8(k-1), and
such registrations have been properly  maintained and renewed in accordance with
all applicable legal requirements.

                       (iii)   There are no  adverse  claims or  demands  of any
person  pertaining to any of the  Trademarks or patents listed in Exhibit 8(k-1)
and there is no valid basis for any such claim.

                       (iv)    Except as disclosed in Exhibit  8(k-1), ASUSA has
the sole and exclusive  right to use the  Trademarks,  patents,  copyrights (and
applications  therefor),  technology,  know-how,  processes,  and trade  secrets
(collectively,  and including the Trademarks, the "Intellectual Property Rights"
required  for or  incident  to the  conduct of the  Corporate  Business,  in the
jurisdictions  in which the Corporate  Business has been or will be conducted or

                                       9
<PAGE>

where ASUSA's products are distributed, and the consummation of the transactions
contemplated in this Agreement will not alter or impair any such rights.

                       (v)     The use or  other  exploitation  by  ASUSA of the
Intellectual  Property  Rights  used or held by  ASUSA  in  connection  with its
operations  and the conduct of the  Corporate  Business  does not infringe on or
dilute the rights of any other person.

                       (vi)    Except as  disclosed in Exhibit  8(k-2)  attached
hereto and made a part  hereof for all  purposes,  neither  ASUSA nor any of the
Stockholders are aware of any  infringements or illicit uses of the Intellectual
Property  Rights used or held by ASUSA in connection  with its operations or the
conduct of the Corporate Business

             (l)   OWNERSHIP OF  ATOMIC  SHARES. Except as  disclosed in Exhibit
8(1) attached hereto and made a part hereof for all purposes,  each  Stockholder
holds full title to, and is duly  registered  as the owner of, the Atomic Shares
to be transferred by such Stockholder pursuant to this Agreement, free and clear
of any and all Liens.

             (m)   SUBSIDIARIES.  Exhibit 8(m), attached hereto and made a  part
hereof  for all  purposes,  sets forth an  accurate  and  complete  list of each
company,  partnership,  or other  business  entity  of which  10% or more of the
outstanding  share  capital  or other  equity  interest  is owned,  directly  or
indirectly, by ASUSA (in any case, a "Subsidiary"),  indicating the jurisdiction
of incorporation,  capital  structure,  and the nature and level of ownership in
such  Subsidiary  and  any  other  stockholder  thereof.  Each  Subsidiary  is a
corporation  duly organized,  validly  existing,  and in good standing under the
laws of its  jurisdiction of  incorporation  and has full power and authority to
own,  lease,  and  operate  the  assets  held or used by it and to  conduct  its
business as currently  conducted.  Each Subsidiary is duly licensed or qualified
and in  good  standing  in all  jurisdictions  in  which  the  character  of the
properties owned or leased by it or the nature of its business requires it to be
so licensed  or  qualified.  Complete  and  correct  copies of all  constitutive
documents of each  Subsidiary  have been  delivered to TSET. The minute books or
other  similar  records of each  Subsidiary  contain an  accurate  record of all
meetings and other corporate  action of its  stockholders and board of directors
(and any committees thereof).

             (n)   TITLE TO PROPERTY: CONDITION; SUFFICIENCY. (i) ASUSA has:

                               (A)  with respect to all real estate owned by it,
good and  marketable  fee simple title, and

                               (B)  with  respect  to all real  estate  which is
leased  by it,  valid and subsisting  leasehold  estates, in each  instance free
and clear of any and all liens, claims, and encumbrances, other than  "Permitted
Encumbrances," and

                               (C)  with  respect  to all of  the  other  assets
owned  by it,  good  title  free  and  clear of any and all  Liens,  other  than
Permitted Encumbrances.

 As used in this Subsection (n), the term  "Permitted  Encumbrances"  shall mean
any Liens that are immaterial,  individually and in the aggregate, to the assets
to which they relate and do not  interfere  with the full use and  enjoyment  of
such assets.

                                       10
<PAGE>

                       (ii)    The  properties  and other assets owned or leased
by ASUSA constitute all properties and other assets necessary for the conduct of
the businesses and activities conducted by ASUSA.

             (o)   FINANCIAL  STATEMENTS.  (i)  Complete  and correct  copies of
the audited and  consolidated  financial  statements  (i.e.,  balance  sheet and
profit and loss  statement)  of ASUSA since  inception  are  attached  hereto as
Exhibit  8(o)  and  made a part  hereof  for  all  purposes  (collectively,  the
"Financial Statements").

                       (ii)    The Financial Statements give a true and accurate
account of the consolidated financial condition, assets and liabilities of ASUSA
as of the dates thereof,  and the results of operations and changes in financial
condition for the periods then ended.  Except as otherwise  disclosed in Exhibit
8(o), the Financial  Statements  have been prepared in accordance with generally
accepted  accounting  principles,  consistently  applied.  Any Interim Financial
Statements  (herein so called)  will,  when  prepared,  give a true and accurate
account of the financial condition,  assets and liabilities of ASUSA at the date
thereof and the results of its operations and changes in financial  position for
the period to which the Interim Financial  Statements apply and will be prepared
in  accordance  with  generally  accepted  accounting  principles,  consistently
applied.

                       (iii)   As of December 31, 1999, ASUSA had no liabilities
or  obligations  of any nature,  whether  known or unknown,  accrued,  absolute,
contingent,  or  otherwise,  and  whether  due or to become  due  (collectively,
"Liabilities"  which were either (A) required by generally  accepted  accounting
principles to be reflected in financial  statements,  or (B)  individually or in
the aggregate material to ASUSA's financial condition, and that, in either case,
were not  reflected or expressly  reserved  against in the audited  consolidated
balance sheet included in the Financial Statements or specifically  disclosed or
provided  for in the notes  thereto.  Since  December  31,  1999,  ASUSA has not
incurred any Liability  except  Liabilities  that (X) were incurred in the usual
and ordinary course of business consistent with past practice,  and (Y) are not,
individually or in the aggregate, material to ASUSA's financial condition.

                       (iv)    Since  January 1, 2000,  ASUSA has conducted  its
businesses  only in the  ordinary  and usual  course in  substantially  the same
manner as theretofore conducted, has not undergone or suffered any change in its
condition (financial or otherwise), income, properties, Liabilities, operations,
or  prospects  which  has  been,  in any  individual  case or in the  aggregate,
materially adverse to ASUSA, and has not taken any of the following actions:

                               (A)  amended any of its constitutive documents;

                               (B)  acquired by merger, consolidation,  purchase
of' stock or assets or otherwise, any corporation,  partnership, association, or
other business organization or division thereof;

                               (C)  altered  its  outstanding  capital  stock or
equity  interests or declared,  set aside,  made, or paid any dividends or other
distributions  in respect of its capital  stock or equity  interests (in cash or
otherwise),  or purchased or redeemed any shares of its capital  stock or equity
interests;

                                       11
<PAGE>

                               (D)  issued or sold (or  agreed to issue or sell)
any of its capital stock or equity interests or any options,  warrants, or other
rights to purchase any such stock or interests or securities convertible into or
exchangeable for such stock or interests;

                               (E)  not  incurred,  other  than in the  ordinary
course of business consistent with past practice,  any indebtedness for borrowed
money (including through the issuance of debt securities) or varied the terms of
any  existing  indebtedness  or  guaranty  or  otherwise  become  liable for any
Liabilities of any third party;

                               (F)  mortgaged,  pledged,  or  subjected  to  any
lien,  claim,  or encumbrance  any of its properties  other than in the ordinary
course of business consistent with past practice;

                               (G)  discharged or satisfied  any material  lien,
claim, or encumbrance or paid or satisfied any material  obligation or Liability
(fixed or  contingent)  or  compromised,  settled,  or  otherwise  adjusted  any
material claim or litigation;

                               (H)  acquired  or  disposed  of  any  substantial
assets or rights,  other than in the ordinary course of business or entered into
any contract  whose term  exceeds one year or is unlimited  and which may not be
terminated by ASUSA on less than three  months'  notice  without  payment of any
penalty;

                               (I)  made   any   changes   in   its   accounting
procedures or practices;

                               (J)  granted    to   any    director,    officer,
consultant,  or  employee  any  increase  or  modification  of  compensation  or
benefits,  or any severance or  termination  pay, or made any loan to or entered
into any employment agreement or arrangement with any such person;

                               (K)  adopted,   entered  into,   amended  in  any
material respect,  announced any intention to adopt or terminate,  any policies,
procedures,  employee  benefit  plans,  programs,  or  arrangements  of  general
applicability;

                               (L)  directly  or  indirectly,  other  than  with
respect  to  negotiating  and  entering  into  this  Agreement,  (1)  solicited,
initiated, or encouraged any inquiries, discussions, or proposals from any other
person  relating  to a  possible  acquisition  of all or any part of the  Atomic
Shares or assets of ASUSA, (2) continued, solicited, encouraged, or entered into
negotiations  or  discussions  relating to any such  possible  acquisition,  (3)
furnished to any other person any information (not already in the public domain)
relating  to  ASUSA,  or (4)  entered  into  or  consummated  any  agreement  or
understanding providing for any such acquisition; or

                               (M)  entered into any oral or written commitments
or understandings to take any of the foregoing actions.

             (p)   OUTSTANDING COMMITMENTS. (i) Exhibit 8(p) attached hereto and
made a part hereof for all purposes  contains an accurate  list of all Contracts
(but excluding orders placed in the ordinary course of business  consistent with

                                       12
<PAGE>

past practice by ASUSA's customers or suppliers) to which ASUSA is a party or by
which any of its assets or operations are bound or affected and which:

                               (A)  involve the obligation (including contingent
obligations) by or to ASUSA to pay amounts of $2,500.00 or more,

                               (B)  are Contracts whose  term  exceeds  one year
or is  unlimited  (with  the exception of labor agreements) and which may not be
terminated by ASUSA on less than three months'  notice  without  payment of any
penalty or premium,

                               (C)  are  Contracts  under  whose  terms ASUSA is
bound to refrain from  carrying  out or to restrict  certain  activities,  or to
refrain from competing with any third party,

                               (D)  are   Contracts   with   any    Stockholder,
director,  officer,  or employee of ASUSA,  or any  relative or affiliate of any
such person, or

                               (E) were not entered into in the ordinary course
of ASUSA's business.

                       (ii)    All  Contracts  listed in Exhibit 8(p) are valid,
binding,  and enforceable by ASUSA in accordance with their respective terms and
ASUSA is not in default  under any of such  Contracts.  No other party to any of
such  Contracts  is in  default  thereunder  nor does  there  exist any event or
condition,  which upon giving of notice or the lapse of time or both,  would (A)
constitute  a default or event of default  thereunder  or (B)  entitle any other
party thereto to terminate such Contract.

                       (iii)   None of the  Contracts  to which ASUSA is a party
or a beneficiary  violates any provision of any applicable Law or Judgment.  All
Contracts  between  ASUSA,  on the  one  hand,  and  its  suppliers,  customers,
distributors,  agents, or licensees on the other hand, have been concluded under
normal market  conditions,  without any  preferential  conditions or exceptional
discounts, in accordance with normal commercial practice.

                  (q) EMPLOYMENT MATTERS. (i) Exhibit 8(q-1) attached hereto and
made a part  hereof  for all  purposes  sets forth all of the  collective  rules
applicable to ASUSA's  employees  (the  "Collective  Rules"  including,  without
limitation,  applicable collective bargaining agreements and company agreements;
any  exceptional  agreements  concluded  with  employee   representatives;   the
remuneration system, including premiums, bonuses, commissions, and advantages in
kind; profit-sharing, incentive, and company savings plans; retirement or health
insurance plans pursuant to which  employees are entitled to receive  advantages
in addition to those  provided for by law or  applicable  collective  bargaining
agreements;  and any regional,  local,  or individual  company or  establishment
practices which provide for advantages which exceed those provided for by law or
applicable collective bargaining agreements.

                       (ii)    Exhibit  8(q-2)  attached  hereto and made a part
hereof  for all  purposes  sets  forth all  consulting,  employment,  severance,
termination,  or compensation  Contracts of ASUSA with any Stockholder or former
stockholder  or with any  current  director,  officer,  consultant,  or with any
individual  employee  or  manager  pursuant  to which such  employee  or manager

                                       13
<PAGE>

receives  benefits  which  exceed those  provided  for by law or the  applicable
Collective  Rules  including,  without  limitation,   increased  severance  pay,
extended  notice  periods,  advantages  in kind,  or pensions  (the  "Employment
Agreements").  None of the Employment  Agreements provides for payments measured
by the value of any equity  security of or  interest  in ASUSA or in  connection
with any  change  in  control  of ASUSA  and no amount  will  become  due to any
employee,  consultant,  officer, or director of ASUSA under the Collective Rules
or any Employment Agreement solely as a result of the transactions  contemplated
in this Agreement.

                       (iii)   Exhibit  8(q-3)  attached  hereto and made a part
hereof  for all  purposes  sets  forth  all  obligations  of ASUSA  to  employee
representative  organizations  which exceed those  provided for by law or in the
applicable Collective Rules.

                      (iv)     ASUSA  is  now  and  has  in  the  past  been  in
compliance with all provisions of applicable labor and social security laws, the
Collective Rules, and the Employment  Agreements and all payments due thereunder
from  ASUSA  have  been  made  when  due and all  amounts  properly  accrued  as
Liabilities  of ASUSA  which have not been paid have been  properly  recorded on
ASUSA's books.

                       (v)     Since inception,  there have occurred no strikes,
slow downs,  work  stoppages,  or other  similar  labor  actions by any group of
ASUSA's employees.  Except as set forth in Exhibit 8(q-3), no Proceeding arising
out of  any  labor  grievance  under  any  Law,  the  Collective  Rules,  or any
Employment  Agreement  is pending  or, to the best  knowledge  of ASUSA and each
Stockholder, threatened.

                       (vi)    ASUSA has not made any  commitment  to any public
agency,  labor  organization,  employees'  representatives,  or any other party,
relating to the numbers of ASUSA's employees or to future collective dismissals.

             (r)   ENVIRONMENTAL,  HEALTH,  AND  SAFETY.  (i) ASUSA has obtained
and been in  compliance  with all terms and  conditions  of any and all  Permits
which  are  required  under,  and  has  complied  with  all  other  limitations,
restrictions,  conditions, standards, prohibitions,  requirements,  obligations,
schedules,  and  timetables  which  are  contained  in,  all Laws and  Judgments
relating to public health and safety, worker health and safety, and pollution or
protection of the environment, including Laws relating to emissions, discharges,
releases  or  threatened  releases of  pollutants,  contaminants,  or  chemical,
industrial,  hazardous,  or toxic materials or wastes into ambient air,  surface
water,   ground  water,  or  lands,  or  otherwise   relating  to  the  testing,
characterization,  classification,  manufacture,  processing, distribution, use,
treatment,   storage,   disposal,   transport,   or  handling   of   pollutants,
contaminants, or chemical, industrial,  hazardous, or toxic materials or wastes.
All such  Permits  are valid and in full  force and  effect  for the  conduct of
ASUSA's business as such business are presently conducted, and where applicable,
timely  renewal  applications  have  been  submitted  for all such  Permits.  No
Proceeding  has been filed or commenced  against  ASUSA  alleging any failure to
comply with any such Laws, Judgments, or Permits.

                       (ii)    ASUSA has no  Liability  (and there is no past or
present fact, status, condition, activity, occurrence, action, or failure to act

                                       14
<PAGE>

related to the past or present  operations,  properties,  or facilities of ASUSA
that  forms  or  reasonably  could  form the  basis  for the  imposition  of any
Liability):

                               (A)  under  any Law  relating  to  protection  of
human  health or safety or  concerning  employee or worker  health and safety or
relating generally to the environment,

                               (B)  for  damage to any site,  location,  natural
resources,  or body of water (surface or subsurface) or for failure to report or
clean up any discharges of any substance, or

                               (C)  for any illness of or personal injury to any
of its employees or any third party.

             (s)   INSURANCE.  Exhibit  8(s)  attached  hereto  and  made a part
hereof  for all  purposes  sets  forth a  complete  list and  brief  description
(specifying the insurer,  the coverage and policy number or covering note number
with respect to binders) of all policies,  binders,  or Contracts to which ASUSA
is a party or by  which  any of its  assets  are  covered,  of  property,  fire,
liability,   product  liability,   workmen's  compensation,   vehicular,  crime,
fiduciary, builders' risk, title, and other insurance or Contracts in the nature
of insurance (collectively,  the "Insurance Contracts"). The Insurance Contracts
listed on Exhibit  8(s) are in full force and  effect in  accordance  with their
respective terms and will remain in full force and effect  hereafter.  ASUSA has
not received  any notice that it is in default with respect to any  provision of
any  Insurance  Contracts.  ASUSA has not provided  inaccurate,  incomplete,  or
misleading  information in connection  with any Insurance  Contract or failed to
give any notice or present any claim  thereunder in due and timely fashion or as
required  by any such  Insurance  Contract  so as to  jeopardize  full  recovery
thereunder.

             (t)   COMPLIANCE  WITH  LEGAL  REGUIREMENTS.  (i)  ASUSA  and  each
Stockholder  is  currently  conducting,  and  has in  the  past  conducted,  its
respective  businesses in compliance with all applicable  Laws,  Judgments,  and
Permits.

                       (ii)    ASUSA  possesses,  and upon  consummation  of the
transactions contemplated in this Agreement will continue to possess all Permits
necessary to conduct its  operations as they are currently  being  conducted and
all such Permits are and will remain in full force and effect.  No Proceeding to
modify, suspend, terminate, or otherwise limit any such Permit is pending or, to
the best knowledge of ASUSA and each Stockholder, threatened.

                       (iii)   Neither  ASUSA nor any  Stockholder  has received
any  notice  in any  form  (including  any  citations,  notices  of  violations,
complaints,  consent  orders,  or inspection  reports) which would indicate that
such party was not at the time of such notice or is not  currently in compliance
with all such applicable Laws, Judgments, and Permits.

             (u)   CAPITALIZATION.   ASUSA's  capitalization  is as set forth in
Section 1 hereof, and the Stockholders listed are the only stockholders of ASUSA
and have sole right to own the Atomic  Shares shown  opposite  their  respective
names.  No other person has any right or  expectancy  to own any Atomic  Shares,
whether  through option,  purchase,  grant, or other means by which any right or
expectancy of ownership could arise or become vested in any such person.

                                       15
<PAGE>

The representations and warranties contained in this Section 8 shall survive the
execution and delivery of this Agreement without limitation as to time

         9.  REPRESENTATIONS  AND  WARRANTIES  OF TSET.  TSET  hereby represents
and  warrants  to ASUSA  and the Stockholders as follows:

                               (a)  TSET is duly  organized,  validly  existing,
and in good standing under the laws of the State of Nevada and has all requisite
power,  authorizations,  consents, and approvals necessary to own its assets and
carry on its business as now being conducted, and to consummate the transactions
contemplated herein.

                               (b)  Neither the execution of this  Agreement nor
the  performance  of its  obligations  hereunder  and  thereunder  does  or will
conflict with or violate any provision of TSET's  articles of  incorporation  or
bylaws;  violate,  conflict with, or result in the breach or termination  of, or
constitute a default,  event of default (or an event which with notice, lapse of
time, or both, would constitute a default or event of default),  under the terms
of any  material  agreement  to which  TSET is a party  or by which  TSET or its
securities,  properties,  or businesses are bound;  or constitute a violation by
TSET of any laws or judgments (other than any violation,  conflict,  breach,  or
default  that  would  not  prevent  TSET  from   consummating  the  transactions
contemplated herein or otherwise performing its obligations thereunder).

                               (c)  There is no  proceeding  (whether or not the
defense  thereof or  liability  with  respect  thereto is covered by policies of
insurance) pending or, to TSET's best knowledge,  threatened, against TSET which
could reasonably be expected to prevent TSET from  consummating the transactions
contemplated herein.

                               (d)  TSET has all necessary  corporate  power and
authority to execute,  deliver, and perform its obligations  hereunder;  and the
execution,  delivery, and performance by TSET of this Agreement to which it is a
party has been duly authorized by all necessary  corporate action on its part or
is within the authority of the person  execution and delivering  the same.  This
Agreement  constitutes  the  legal,  valid,  and  binding  obligations  of TSET,
enforceable  against it in accordance  with the terms thereof,  except as may be
limited by applicable bankruptcy,  insolvency,  reorganization, or other similar
laws affecting creditors' rights and general principles of equity.

         10.  DISTRIBUTION  OF  PROFITS.  The parties  agree  that,  as the sole
stockholder  of ASUSA,  all profits  resulting from the conduct of the Corporate
Business shall belong to TSET,  and that TSET shall be entitled to  distribution
thereof from ASUSA on a regular  basis.  The directors of ASUSA agree to vote in
favor of such  distributions as requested from time to time by TSET. TSET hereby
covenants that it shall, in connection  with any request for such  distribution,
ensure that sufficient cash remains allocated to ASUSA to provide for reasonable
operating and working capital needs for the  continuation and advancement of the
Corporate  Business,  funding of Programs  relating to  profit-sharing  or other
benefits plans  according to the terns  thereof,  plus  reasonable  reserves for
contingencies or extraordinary items. In connection with any request by TSET for
a cash  distribution,  TSET and  ASUSA's  board of  directors  shall  consult to
determine ASUSA's reasonable cash needs, as provided above.

                                       16
<PAGE>

         11.  ARBITRATION.  (a) In the event of any default or dispute  between,
breach by, or other  controversy  involving,  the parties  hereto  regarding the
subject matter of this  Agreement (in any case, a "Dispute"),  the parties shall
exert their  respective  good faith best efforts to amicably  resolve and settle
the same.  Toward this end, the parties shall  consult and  negotiate  with each
other in good faith and  understanding  their  mutual best  interests to reach a
just and equitable  solution  reasonably  satisfactory to them. In the event the
Dispute cannot be amicably resolved and settled through good faith negotiations,
the parties agree to submit the Dispute to arbitration rather than litigation.

                               (b)  All  arbitration  proceedings  instituted by
the parties hereunder shall take place in Clackamas County,  Oregon and shall be
governed  by the  rules  of the  American  arbitration  Association  (the  "AAA"
applicable to contracts of this type. If the parties to the Dispute cannot agree
on the  appointment  of an  arbitrator,  the  parties  agree  that the AAA shall
appoint an  independent  arbitrator,  whose  decision shall be final and binding
upon the parties and not subject to appeal to any court or government  agency or
authority,  and shall be  enforceable  in any court of  competent  jurisdiction;
provided,  however,  that the arbitrator  shall not award or require the payment
of, and the  parties  shall not seek,  incidental,  consequential,  or  punitive
damages except in cases of bad faith breach of this Agreement, gross negligence,
or  willful  misconduct.  The  parties  shall not seek to delay or  prevent  the
implementation  of any decision of the arbitrator.  The prevailing  party in any
arbitration brought hereunder shall be entitled to recover reasonable attorney's
fees and related costs and expenses of the arbitration.

                               (c)  The  parties  each  acknowledge  that  their
agreement to resolve Disputes through arbitration  constitutes a waiver of their
right to resolve Disputes in any court, and that in arbitration  proceedings the
parties  may not be  entitled  to all of the  rights  that  would  otherwise  be
available to them in court proceedings.

         12. INDEMNIFICATION.   (a) From and after  the date of this  Agreement,
ASUSA and each  Stockholder  jointly and severally agree to pay and to indemnify
fully, hold harmless,  and defend TSET and its directors,  officers,  employees,
agents, representatives, attorneys, successors, and assigns from and against any
and all Liabilities,  damages, penalties, Judgments, assessments, losses, fines,
charges,  costs,  and  expenses  (including,  but  not  limited  to,  reasonable
attorney's   fees  and  the  costs  and  expenses  of  litigating   any  claims)
(collectively,  "Damages")  incurred by any of them arising out of, relating to,
or based upon:

                               (i)  any    inaccuracy    or    breach   of   any
representation  or warranty of ASUSA or any  Stockholder  set forth in Section 8
hereof or elsewhere herein; and

                               (ii) any breach of any  covenant or  agreement of
ASUSA or any Stockholder contained in this Agreement.

TSET's right to be indemnified hereunder shall not be limited or affected by any
investigation conducted or notice or knowledge obtained by or on behalf of TSET.

                       (b)   In  the  event  that  (A)  any  claim,  demand,  or
Proceeding is asserted or instituted by any party other than the parties  hereto
and their  affiliates which could give rise to Damages for which TSET intends to

                                       17
<PAGE>

seek  indemnification  from ASUSA or the Stockholders  hereunder (a "Third Party
Claim" or (B) TSET  intends  to make a claim to be  indemnified  by ASUSA or the
Stockholders  hereunder  which does not  involve a Third  Party Claim (a "Direct
Claim"),  TSET  shall  promptly,  within  21 days of the  date on which it first
becomes aware of the existence of such claim,  send written  notice to ASUSA and
the  Stockholders  specifying  the nature of such claim or demand and the amount
(or a good faith estimate of such amount, which estimate shall not be conclusive
of any final  amount of such  claim and  demand) (a "Claim  Notice");  provided,
however,  that failure to provide a Claim Notice shall not constitute any waiver
or relinquishment of TSET's rights to indemnification hereunder.

                       (c)   In the event of a Third Party Claim,  ASUSA and the
Stockholders may participate,  at their own expense, in the defense thereof with
legal counsel of their own choice  reasonably  acceptable to TSET.  Unless ASUSA
and the  Stockholders  shall have agreed in writing  that any and all Damages to
TSET are fully covered by the indemnities  provided herein, no Third Party Claim
may be settled without TSET's prior written consent,  which consent shall not be
unreasonably withheld, conditioned, or delayed.

                       (d)   In the event of a Direct  Claim,  unless  ASUSA and
the Stockholders notify TSET within 30 days after receipt of a Claim Notice that
they  dispute  such  Direct  Claim,  the amount of such  Direct  Claim  shall be
conclusively  deemed a liability of ASUSA and the Stockholders and shall be paid
to TSET no later than 10 days following lapse of such 30-day period.

         13. GENERAL PROVISIONS.

                               (a)  INTEGRATION  AND  AMENDMENT.  This Agreement
constitutes the entire agreement between the parties with respect to the subject
matter  hereof and  supercedes  all prior  agreements  and  understandings  with
respect hereto and thereto. No other agreement,  whether oral or written,  shall
be used to modify or  contradict  the  provisions  hereof  unless the same is in
writing,  signed by the  parties,  and states  that it is  intended to amend the
provisions of this Agreement.

                               (b)  COUNTERPARTS. This Agreement may be executed
in multiple  counterparts (and by facsimile signature,  to be followed by manual
signature), each of which shall be deemed an original, and all of which shall be
deemed to constitute a single agreement,  document,  instrument, or certificate,
as the case may be.

                               (c)  BINDING  EFFECT.  This  Agreement  shall  be
binding upon and inure to the benefit of the heirs, successors,
and permitted assigns of the parties hereto.

                               (d)  WAIVER.  No  failure  by any  party  to this
Agreement to  exercise,  no delay in  exercising,  and no course of dealing with
respect to, any right,  power,  or privilege  hereunder  or any other  document,
instrument,  or certificate  relating  hereto,  shall operate as a waiver or any
relinquishment for the future thereof;  and no single or partial exercise of any
right,  power,  or privilege  hereunder or any other  document,  instrument,  or
certificate relating hereto shall preclude any other or further exercise thereof
or the exercise of any other right, power, or privilege.

                                       18
<PAGE>

                               (e)  SEVERABILITY.  If any  provision (or portion
thereof) of this Agreement is adjudged  illegal or  unenforceable  by a court of
competent jurisdiction,  the remaining provisions shall nevertheless continue in
full  force and  effect.  In any such  case,  the  provision  deemed  illegal or
unenforceable  shall be remade or  interpreted  by the  parties in a manner that
such provision shall be enforceable to preserve, to the maximum extent possible,
the original intention and meaning thereof.

                               (f)  NOTICES. All notices or other communications
given or made hereunder shall be in writing and may be delivered personally,  by
express,  registered,  or certified mail (return receipt requested),  by special
courier,  or by facsimile  transmission (to be followed by delivery of a written
original notice in the most  expeditious  manner  possible,  as aforesaid),  all
postage,  fees, and charges prepaid,  to TSET, ASUSA or any of the Stockholders,
as the case may be, to the  following  addresses  (which  may be  changed by the
parties from time to time upon written notice given as aforesaid):

      TO TSET:                      333 South State Street, PMB 111
      -------                       Lake Oswego, OR 97034

                                    Tel:   503.293.1270
                                    Fax:   503.293.7233

                                    Attn:  Jeffrey D. Wilson
                                           Chairman and Chief Executive Officer

      TO ASUSA:                     6045 Monona Drive
      ---------                     Madison, WI 53716

                                    Tel:   608. 226.9982
                                    Fax:   608. 226.9670
                                    Email: todd@atomicsoccer.com

      TO TODD P. RAGSDALE:          6205 Westin Drive
      --------------------          Madison, WI  53719

                                    Tel:   608.278.7086

      TO JAMES ERIC ANDERSON:       Calle Huerta 132 Col Carlos
      -----------------------       Ensenada, BC Mexico

                                    Tel:   52.615.42369

      TO JEWEL ANDERSON:            5251 Anna Lane
      ------------------            Middleton, WI 53562

                                    Tel:   608.233.6515

      TO TIMOTHY BEGLINGER:         2200 U.S. Highway 51
      ---------------------         Stoughton, WI 53589

                                    Tel:   608.873.0961

                                       19
<PAGE>

      TO ATOMIC MILLENIUM PARTNERS: 305 East Spring Road
      ----------------------------- Dodgeville, WI 53533

                                    Attn: Tim Singer

                                    Tel:     608.935.3361

Notices  hereunder  shall  be  deemed  given  when  delivered  in  person,  upon
confirmation of successful  transmission  when sent by telex or facsimile (to be
followed by delivery by express or regular  mail),  or 5 days after being mailed
by express,  registered,  or certified mail (return receipt requested),  postage
prepaid.

                       (g)   COSTS.  EXPENSES,  AND TAXES. Each party shall bear
its own costs,  expenses, and taxes incurred or associated with the transactions
contemplated herein.

                       (h)   GOVERNING LAW. This Agreement  shall be governed by
and construed in accordance  with the laws of the State of Oregon,  exclusive of
its conflicts of laws principles.

                        [SIGNATURES APPEAR ON NEXT PAGE]

                                       20
<PAGE>

             IN WITNESS  WHEREOF,  the parties have executed and delivered  this
Agreement effective as of the date first written above.

TSET, Inc.

By:
   --------------------------------------
     Jeffrey D. Wilson
     Chairman and Chief Executive Officer

ATOMIC SOCCER USA, LTD.

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

-----------------------------------------
Todd P. Ragsdale, individually

-------------------------------------
James Eric Anderson, individually

-------------------------------------
Jewel Anderson, individually

-------------------------------------
Timothy Beglinger, individually

ATOMIC MILLENNIUM PARTNERS, LLC

By:
   --------------------------------------
     Name:
          -------------------------------
     Authorized Signatory:

                                       21
<PAGE>

ACKNOWLEDGED AND AGREED:

-------------------------------------
Jonathan Beglinger, individually

-------------------------------------
Michael Santry, individually

-------------------------------------
Suzanne May, individually

-------------------------------------
Thomas Bates, individually

-------------------------------------
Sterling Anderson, individually

                                       22
<PAGE>

LIST OF EXHIBITS

         EXHIBIT 5 -- FINANCIAL OBLIGATIONS OWED BY ASUSA TO DAVID M.
                                    RAGSDALE AND PAUL HIX
         EXHIBIT 8(B) -- DEFAULTS  AND BREACHES
         EXHIBIT 8(C-1) --  LITIGATION
         EXHIBIT 8(C-2) -- JUDGMENTS
         EXHIBIT 8(D) -- FINDERS AND BROKERS
         EXHIBIT 8I(1) -- TAXES
         EXHIBIT  8(F-2)  -- TAX  WITHHOLDINGS
         EXHIBIT 8 (G) --  CONSENTS AND APPROVALS
         EXHIBIT 8(J) -- COMPENSATION OR OTHER AGREEMENTS IN FAVOR OF
                          MANAGEMENT, EMPLOYEES, OR STOCKHOLDERS
         EXHIBIT 8(1) -- INTELLECTUAL PROPERTY
         EXHIBIT 8(K-2) -- ENCUMBRANCES, LIENS, OR SUPERIOR CLAIMS UPON THE
                            INTELLECTUAL PROPERTY RIGHTS AND THE TECHNOLOGY;
                            INFRINGEMENTS
         EXHIBIT 8(T) -- LIENS UPON THE ATOMIC SHARES OWNED BY THE
                                    STOCKHOLDERS
         EXHIBIT 8(M) -- SUBSIDIARIES
         EXHIBIT 8(O) -- FINANCIAL STATEMENTS
         EXHIBIT 8(P) -- OUTSTANDING COMMITMENTS
         EXHIBIT 8(Q-1) -- COLLECTIVE RULES
         EXHIBIT 8(Q-2) -- EMPLOYMENT AGREEMENTS
         EXHIBIT 8(Q-3) -- OBLIGATIONS TO EMPLOYEE REPRESENTATIVE
                                 ORGANIZATIONS; HISTORY OF LABOR ACTIONS
         EXHIBIT 8(S) -- INSURANCE

                                       22
<PAGE>EXHIBIT 10.6

                              ACQUISITION AGREEMENT

         THIS  ACQUISITION  AGREEMENT is entered into  effective as of March 13,
2000,  by and among TSET,  Inc.,  a Nevada  corporation  ("TSET");  High Voltage
Integrated,   LLC,  a  Washington  limited  liability  company  ("HVI");  Ingrid
Fuhriman, an individual; Igor Krichtafovitch,  an individual; Robert L. Fuhriman
II, an  individual;  and Alan Thomson,  an  individual  (Ingrid  Fuhriman,  Igor
Krichtafovitch,  Robert  L.  Fuhriman  II,  and  Alan  Thomson  are  hereinafter
collectively referred to as the "Principals").

         WHEREAS,  HVI and the Principals have developed and own certain patents
pending and all other related intellectual property rights relating to a certain
high  voltage  technology  innovation  known as the  "electron  wind  generator"
(including any and all improvements and derivatives, the "Technology");

         WHEREAS,  on December 27, 1999,  TSET, HVI, and the Principals  entered
into a Letter of Intent for the purpose of, among other  things,  setting  forth
the main terms  pursuant to which TSET would  acquire all of the shares of a new
corporation into which would be transferred the Intellectual Property Rights (as
defined in Exhibit 2B attached  hereto and made a part hereof for all  purposes)
and the Technology, and other elements of the relationship of the parties;

         WHEREAS,  TSET,  HVI, and the Principals  desire to pursue the business
purposes  described in Section IA hereof (all such activities  described in such
Section 1A hereof are  hereinafter  collectively  referred to as the  "Corporate
Business");

         WHEREAS,  TSET is willing and able, among other things,  to provide and
assist in the provision of working  capital  necessary to the furtherance of the
Corporate Business,  and HVI and the Principals are willing, among other things,
to contribute the  Intellectual  Property Rights and the Technology and continue
to exert their best efforts in conducting the Corporate Business; and

         WHEREAS, the parties hereto desire to conduct the Corporate Business in
the form and through the  instrumentality  of a new  corporation  to be known as
"Kronos Technologies, Inc." ("Kronos"), as described herein.

         NOW,  THEREFORE,  for and in  consideration  of the premises and mutual
covenants, promises,  representations,  and warranties set forth herein, and for
other good and valuable consideration, the sufficiency, delivery, and receipt of
which are hereby acknowledged, the parties hereto agree as follows:

         1. FORMATION OF BUSINESS ENTITY.  As soon as practicable  following the
execution and delivery of this Agreement by the parties,  TSET shall, at its own
expense,  cause to occur all steps  necessary  for the  incorporation  of Kronos
under the laws of the State of Nevada.  Kronos' authorized capital shall consist
of 100,000,000  shares of common stock,  par value $0.001 per share (the "Kronos
Shares").  Following incorporation,  all costs, expenses, fees, taxes, licenses,
and other charges of maintaining  corporate  existence,  good standing,  foreign
qualifications,  operations,  and conduct of the Corporate Business shall be for
the account of, and shall be borne by, Kronos.  The Principals  shall retain the

<PAGE>

discretion  whether  to  continue  the  corporate  existence  of HVI  and  their
respective ownership interests therein; provided, however, that if the corporate
existence of HVI is terminated,  the Principals,  as the owners  thereof,  shall
bear  continuing  responsibility  for the  truth  and  accuracy  of all of HVI's
representations,  warranties,  and fulfillment of all of HVI's  undertakings set
forth herein.

         1A.  STATEMENT OF THE  CORPORATE  BUSINESS.  The parties agree that the
Corporate Business of Kronos shall be, among other things:

                  (a)  to  own  the   Intellectual   Property   Rights  and  the
Technology, and all improvements thereto and derivatives thereof;

                  (b) to  diligently  and  aggressively  apply the  Intellectual
Property  Rights and the  Technology for the further  advancement,  development,
improvement,  enhancement,  deployment,  maximization of value, and exploitation
thereof in global  markets by, among other  things,  developing  prototypes  and
production-model  devices  embodying the  Intellectual  Property  Rights and the
Technology  for the  Initial  Applications  and  making  the same  available  to
commercial and other markets globally, and to conduct all such activities with a
view to generating profits;

                  (c) to  take  such  reasonable  and  prudent  steps  as may be
necessary and advisable to:

                           (i)  ensure  good  faith  best  efforts  are taken to
protect, preserve,  enhance, expand, and defend the Intellectual Property Rights
and  the   Technology   by,  among  other   things,   establishing   appropriate
confidentiality and security  arrangements for protecting  Kronos's  non-public,
proprietary information and trade secrets;

                           (ii) aggressively  monitor  developments in the field
of the  Intellectual  Property  Rights and the  Technology and employ good faith
best efforts in policing  against and preventing  infringements  or illicit uses
thereof,  and enforcing  Kronos'  rights  relating  thereto  including,  without
limitation, the initiation of legal proceedings with respect thereto;

                  (d)  expand  the scope  and  application  of the  Intellectual
Property Rights and the Technology,  through diligently conducting the Corporate
Business,   continuing  research  and  development   activities  for  enhancing,
improving, and creating derivative  manifestations thereof,  diligently pursuing
such patent  applications as are already filed, and seeking  additional  patents
and  other  legal  protections  for the  Initial  Applications  (and any and all
improvements thereto and derivatives thereof); and

                  (e) to establish programs,  procedures, and mechanisms whereby
the Principals  will benefit  economically  and have  appropriate  incentives to
diligently and properly conduct the Corporate  Business and seek at all times to
advance Kronos' best interests,  and maximize Kronos'  profitability and success
for the benefit of TSET; and

                  (f) to  pursue  such  other  activities  as  Kronos'  board of
directors may direct or establish.

Page 2
<PAGE>

         2. TRANSFER OF INTELLECTUAL PROPERTY RIGHTS.  Immediately following the
incorporation  of Kronos,  HVI and the  Principals  shall execute and deliver to
Kronos  any  and all  necessary  and  appropriate  documents,  instruments,  and
certificates  of assignment,  transfer,  and conveyance  described in Exhibit 2A
attached  hereto and made a part  hereof  for all  purposes  (collectively,  the
"Transfer Documents") relating to the Intellectual Property Rights (as described
in Exhibit 2B  attached  hereto and made a part hereof for all  purposes),  such
that all right,  title, and interest in and to the Intellectual  Property Rights
shall be vested in Kronos for all purposes, free and clear of any and all liens,
claims,  encumbrances,  and charges thereon.  Any  Intellectual  Property Rights
arising  out of  future  developments,  improvements,  derivatives,  or  devices
embodying or including the Intellectual  Property Rights or the Technology,  and
any patents or other similar legal  protections  and ownership  rights  relating
thereto, shall be the property of Kronos.

         3. INITIAL  ISSUANCE OF THE KRONOS  SHARES.  Immediately  following the
transfer of the Intellectual Property Rights to Kronos as described in Section 2
hereof,  Kronos' board of directors  shall approve,  authorize,  and cause to be
issued to HVI and the  Principals  their  respective  pro rata  number of Kronos
Shares as follows:

              HVI                                           -0- shares
              Ingrid Fuhriman                               450,000 shares
              Igor Krichtafovitch                           1,125,000 shares
              Robert L. Fuhriman, II                        450,000 shares
              Alan Thomson                                  225,000 shares

Upon issuance, the Kronos Shares shall be deemed fully paid and non-assessable.

         4. EXCHANGE OF SHARES.  (a)  Immediately  following the transfer of the
Intellectual  Property Rights to Kronos and the issuance of the Kronos Shares to
HVI and the  Principals,  and in exchange for all of the Kronos  Shares owned by
each of them, TSET shall deliver to HVI and each of the Principals  certificates
representing  "investment"  shares of TSET's common stock,  par value $0.001 per
share  (the  "TSET  Shares"),  with  HVI and  each  Principal  and  the  finders
identified below with an asterisk by their names  (collectively,  the "Finders")
receiving the following allocation of the TSET Shares:

          HVI                                               -0- shares
          To be held in Escrow                              250,000 shares
          In Trust                                          360,000 shares
          Ingrid Fuhriman                                   288,000 shares
          Igor Krichtafovitch                               720,000 shares
          Robert L. Fuhriman, II                            288,000 shares
          Alan Thomson                                      144,000 shares
          F. Briton McConkie*                               180,000 shares
          Ralph Thomson*                                    20,000 shares

The  aggregate  number of TSET  Shares  to be  issued to HVI and the  Principals
pursuant to this Section 4 shall be 2,250,000  shares (the "Aggregate  Shares"),
calculated as shown in Exhibit 4 attached  hereto and made a part hereof for all
purposes,  as sole  compensation  for the Kronos Shares.  HVI and the Principals
understand and acknowledge that the TSET Shares shall be subject to, and HVI and

Page 3
<PAGE>

the  Principals  agree  to at all  times  observe  and  comply  with any and all
conditions, limitations, and restrictions noted on the certificates representing
the TSET Shares,  in addition to any other  restrictions set forth in applicable
federal and state securities laws. Any taxes,  levies, or other charges assessed
against,  or in connection  with the acquisiton of, the TSET Shares  pursuant to
this  Subsection  (a) shall be for the account of, and shall be borne solely by,
HVI and the Principals.

                  (b) Any  compensation  or  finder's  fee payable by HVI or the
Principals (or any of them) to any person (including,  without  limitation,  the
Finders)  relating to the  transactions  contemplated by this Agreement shall be
paid out of the Aggregate  Shares,  the parties agreeing that TSET shall have no
financial  or  other   responsibility   whatsoever   for  payment  of  any  such
compensation.

                  (c) The TSET Shares  received by the Finders do not constitute
any ownership interest in Kronos.

         5. MANAGEMENT.  (a) Kronos' initial board of directors, to be appointed
by the  Principals  in connection  with the  incorporation  of Kronos,  shall be
comprised of the following individuals:

                           Ingrid Fuhriman
                           Igor Krichtafovitch
                           Robert L. Fuhriman, II
                           Alan Thomson
                           Jeffrey D. Wilson (serving as chairman of the board
                                 of directors and representing TSET)

Such directors shall serve in accordance with Kronos' bylaws and applicable law.

                  (b) Kronos' initial officer and executive  management shall be
comprised as follows:

                           Alan Thomson - Chief Executive Officer and President
                           Igor Krichtafovitch - Vice President
                           Ingrid Fuhriman - Secretary
                           Robert L. Fuhriman, II - Treasurer

                  (c) The  parties  agree that the  primary  responsibility  for
Kronos'  day-to-day   management,   business   development,   finances  and  the
administration thereof, budgets (capital, research and development,  operations,
and others), and the conduct of the Corporate Business,  shall belong to Kronos'
board of  directors,  but with  such  consultations  and  determinations  as are
consistent  with  TSET's  ownership  of Kronos and  subject  to the  obligations
described  in Section l5  hereof.  In  carrying  out such  responsibilities  and
conducting  all elements of the Corporate  Business,  Kronos' board of directors
shall  at all  times  conduct  themselves  according  to the  highest  fiduciary
standards of good faith and sound business  judgment,  exerting their individual
and  collective   best  efforts  to  exploit  and  maximize  the  value  of  the
Intellectual  Property  Rights and the  Technology,  seeking to advance the best
interests of Kronos,  complying with all laws, rules, and regulations applicable
to the  Corporate  Business,  and keeping  available  to Kronos the  services of
Kronos' directors,  officers, and key employees. The Corporate Business shall be

Page 4
<PAGE>

conducted by Kronos'  board of  directors in the regular and ordinary  course in
substantially the manner  heretofore  conducted by the Principals in and through
HVI. The Principals,  individually and  collectively,  shall dedicate  necessary
time attention and efforts to the conduct of the Corporate  Business,  except as
may be otherwise permitted under Section 6(c) and (d) hereof.

                  (d) Without limiting the scope of  responsibilities  described
in this Section 5 or elsewhere herein, or as may be provided in Kronos' articles
of  incorporation,  bylaws,  or under  applicable  law, Kronos shall ensure that
long-term employment agreements are entered into with its key employees and that
"key-person" insurance is obtained upon commercially reasonable terms as soon as
practicable  following  the  execution  and  delivery of this  Agreement  by the
parties, with all costs,  premiums, and other associated expenses to be borne by
Kronos.

                  (e) Wherever in this Agreement reference is made to actions to
be  taken  by  Kronos  necessary  to  implement  the  transactions  and  matters
contemplated  herein or in the Transfer  Documents,  the parties agree that they
shall vote their  respective  Kronos Shares,  or cause their  representative  on
Kronos'  board of directors  to act, so that all such actions are  expeditiously
and fully taken.

                  (f) The parties acknowledge that they are unable to anticipate
and provide herein for every  situation and  contingency  which may arise during
the conduct of the  Corporate  Business.  Accordingly,  the  parties  agree that
principles of good faith and fair dealing will govern their conduct at all times
and that best efforts will be exerted to amicably and expeditiously  resolve any
dispute  arising  hereafter,  all with a view to seeking to advance Kronos' best
interests and to maximize the economic value of the Intellectual Property Rights
and the Technology.

         6. INITIAL  APPLICATIONS.  (a) As a statement of corporate policy which
shall govern all elements of the  relationship of the parties  hereunder and the
conduct of the  Corporate  Business,  the parties  intend that all  development,
advancement,  maximization  of  value,  and  exploitation  of  the  Intellectual
Property  Rights and the  Technology  shall occur and be  conducted  through the
instrumentality of Kronos pursuant to this Agreement; and

                  (b) The parties agree that Kronos' primary initial efforts and
funding  shall  focus  upon the  further  development  and  exploitation  of the
hospital/medical clinic,  automotive,  medical equipment,  residential/business,
and hotel  applications of the Technology  (collectively,  and including any and
all improvements thereto and derivatives  thereof, the "Initial  Applications"),
and to engage in such  business  development  activities  as are  necessary  and
proper  to  establish  markets,   licenses,  sales,  and  other  activities  and
arrangements for the realization of maximum economic return thereon.

         7. FUTURE APPLICATIONS.  In keeping with the corporate policy described
in Section 6(a) hereof, the parties intend that potential military  applications
of the  Intellectual  Property  Rights and the  Technology be conducted  through
Kronos;  provided,  however,  that  TSET  understands  and  acknowledges  that a
contract  containing a no-shop  provision  (the "Military  Contract")  currently
exists between HVI and Bath Iron Works/General Dynamics Corporation  ("BIW/GD"),
covering certain dimensions of the Technology as specified in Exhibit 7 attached
hereto and made a part hereof for all  purposes.  TSET shall place  250,000 TSET
shares in an escrow account (the "Escrow Shares") for distribution to a trust to
be  established  by the  Principals  (as  referenced  in Section 4 hereof)  (the

Page 5
<PAGE>

"Trust")  for the purpose of receiving  issuance the Escrow  Shares in the event
the  no-shop  provision  of  the  Military  Contract  is  adjusted,  waived,  or
renegotiated  in such a manner that enables  such  military  applications  to be
conducted through Kronos.  HVI believes in good faith that the Military Contract
can be  contributed  to  Kronos  within  60 days of the date of this  Agreement.
Should such contribution not occur within such 60-day period,  the Escrow Shares
may,  at TSET's  sole  option,  be  returned  to TSET,  or TSET may, at its sole
option,  extend the time period for the Military  Contract to be  contributed to
Kronos,  with the Escrow Shares to remain in such escrow  account until released
to the Trust pursuant to the  renegotiation  of the Military  Contract to enable
the Military Contract and all such military applications to be contributed,  and
the contribution  thereof,  to Kronos. All parties agree that the release of the
Escrow Shares to the Trust shall be the sole  compensation for the renegotiation
and contribution of the Military Contract and all other military applications of
the Intellectual Property Rights and the Technology,  with the allocation of the
Escrow Shares to the Trust to be specified by HVI and the Principals at the time
of the release thereof pursuant to this Section 7.

         8.  CONTRIBUTIONS BY TSET. (a)(i) TSET shall assist and support Kronos'
capital-raising  efforts and shall provide and make  available to Kronos working
capital in the aggregate amount of $500,000.00 (the "Initial  Funding") over the
six-month period next following the execution and delivery of this Agreement and
the Transfer  Documents (the "Funding  Period").  To the extent  required,  TSET
shall  use its  own  shares  in  order  to  arrange  for,  procure,  and  ensure
availability of the Initial Funding;  provided,  however, that TSET's obligation
to provide the Initial  Funding  shall not be  construed  as or  constitute  any
assumption of any obligation regarding any indebtedness,  operating expenses, or
other financial  liabilities of HVI or any of the  Principals,  other than those
potential liabilities identified in Exhibit 8A. Provision of the Initial Funding
shall  be the  sole  financial  obligation  owed by TSET  to  Kronos;  provided,
however, that TSET may elect, but is not obligated, to provide to Kronos funding
in addition to the Initial Funding in appropriate cases to be determined by TSET
in its  sole  and  absolute  discretion.  Within  10 days of the  execution  and
delivery  of this  Agreement  and  the  Transfer  Documents,  Kronos'  board  of
directors shall establish an operating  budget,  including  provision for, among
other things,  the prudent  expenditure  and  conservation  of funds for working
capital,  the development of working  prototype devices embodying the Technology
to enable  demonstration  thereof  in, and the  perfection  and  policing of the
Intellectual  Property  Rights,  all with a view to the efficient and profitable
conduct of the Corporate Business.

                  (ii) The  parties  agree  that the  Initial  Funding  shall be
released by TSET to Kronos pursuant to schedule  attached as Exhibit 8B and made
a part of this  Agreement  for all  purposes.  Should TSET fail to release funds
pursuant to Exhibit 8B, TSET shall be in default of this  Agreement  and Section
8(b)(i) of this Agreement shall apply.

                  (iii) In addition to providing the Initial Funding, TSET shall
also  assist  Kronos  in  arranging  manufacturing  for  devices  embodying  the
Technology,  as well as  assistance  and  support in  business  development  and
marketing activities as may be requested by Kronos from time to time.

                  (b) The parties acknowledge that TSET's undertaking to provide
the Initial  Funding is a significant  inducement  to HVI and the  Principals to
enter into the Transfer  Documents and consummate the transactions  contemplated
herein and therein,  and that on or before the lapse of the Funding  Period TSET

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<PAGE>

shall have  provided to Kronos the entire  amount of the Initial  Funding in the
amounts and at the times  specified  in Exhibit  8B. In the event TSET  provides
less than all of any installment of the Initial  Funding  pursuant to Exhibit 8B
within 5 business days of the due date therefor,  Kronos shall provide immediate
written  notice to TSET that an event of default  has  occurred  hereunder  (the
"Default  Notice").  If  TSET  fails  to  provide  the  unpaid  portion  of such
installment  to Kronos  within 15 days of TSET's  receipt of the Default  Notice
(the "Cure Period"),  the number of Kronos Shares owned by TSET shall be reduced
to reflect the  proportionate  value of the Initial Funding  provided by TSET to
Kronos,  with the number of the Kronos Shares deducted from TSET's holding to be
transferred to and distributed  among HVI and the Principals on a pro rata basis
(the  "Share  Adjustment").  The Share  Adjustment  shall  occur  within 10 days
following  lapse of the Cure  Period if TSET  fails  during  the Cure  Period to
provide the unpaid portion of the Initial  Funding  installment in question.  If
TSET fails to provide  four  consecutive  installments  of the  Initial  Funding
pursuant  to  Schedule 8B prior to the lapse of the Cure Period for the final of
such four  installments,  this  Agreement  and the Transfer  Documents  shall be
terminated and deemed null and void and the  Intellectual  Property Rights shall
be assigned,  transferred,  and conveyed by Kronos to HVI and the Principals, as
they may direct in writing to TSET.

                  (c) If TSET  fails to  provide  any  Initial  Funding  (or any
installment  thereof) as described in Subsection  (b) above,  the sole remedy of
HVI and the Principals shall be the Share Adjustment, or the termination of this
Agreement and the Transfer Documents and assignment, transfer, and conveyance to
HVI and the Principals of the Intellectual  Property Rights, as the case may be,
all as described in Subsection (b) above.

No party  shall  have any  liability  to the other for  monetary  damages of any
description whatsoever including, without limitation, incidental, consequential,
or punitive damages.

         9. OPTIONS AND OTHER  PROGRAMS.  HVI and the Principals  understand and
acknowledge that, as of the date hereof, neither TSET nor Kronos has adopted any
stock option,  incentive,  profit-sharing,  savings,  or other similar  programs
(collectively,  the  "Programs"),  but that  adoption of the Programs as soon as
practicable  after the date hereof is an objective of both TSET and Kronos.  The
terms and conditions of  participation,  contribution,  matching,  vesting,  and
other elements of the Programs shall be established by the respective  boards of
directors of TSET and Kronos. The Principals shall be entitled to participate in
Programs adopted by TSET,  subject to any conditions or restrictions  imposed on
such participation by TSET's board of directors.  As an additional inducement to
the  Principals  and to ensure  participation  by the  Principals  in the future
success of Kronos, TSET, as sole stockholder of Kronos, hereby agrees to reserve
20% of Kronos'  authorized capital stock to be used in Programs to be adopted by
Kronos'  board  of  directors  and  consents  to the full  participation  of the
Principals therein,  subject to the terms for such participation  established by
Kronos'  board of  directors;  provided,  however,  that the final  terms of the
Programs  adopted by Kronos' board of directors shall be subject to TSET's prior
written consent, which consent shall not be unreasonably withheld,  conditioned,
or delayed.

         10. FUTURE EVENTS.  TSET,  HVI, and the  Principals  intend that, at an
appropriate  and  mutually  agreed  time  in the  future,  due  and  good  faith
consideration  be given to effecting a transaction  pursuant to which Kronos may
become  a  publicy-owned  entity  (the  "Reconstitutive  Decision");   provided,

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however,   that  the  parties'  decision  to  retain  Kronos  as  a  wholly-  or
majority-owned  subsidiary  of TSET or effect a  transaction  pursuant  to which
Kronos' ownership  materially changes but it remains privately held shall not be
deemed a breach of this Section 10.  Notwithstanding the foregoing,  the parties
agree that a  Reconstitutive  Decision  shall not occur earlier than twenty four
months following the date of this Agreement.  In the event of any Reconstitutive
Decision,  TSET (or its nominees) shall retain not less than a non-dilutible 20%
ownership  interest therein for a period of two years and no single  shareholder
shall hold any greater percentage than TSET for a period of two years.

         11. EMPLOYMENT AGREEMENTS. TSET and Principals agree to cause Kronos to
enter into  employment  agreements  with the Principals in a form  substantially
similar to the  Employment  Agreement  attached to this Agreement as Exhibit 11,
the parties  understanding  that the final terms and conditions thereof shall be
the result of negotiations between Kronos and each of the Principals;  provided,
however,  that Kronos shall not execute any such  employment  agreement  without
TSET's prior written consent,  which consent shall not be unreasonably withheld,
conditioned, or delayed.

         12.  REPRESENTATIONS AND WARRANTIES OF HVI AND THE PRINCIPALS.  HVI and
each of the Principals,  jointly and severally,  hereby represent and warrant to
TSET as follows:

                  (a)  HVI is  duly  organized,  validly  existing,  and in good
standing under the laws of the State of Washington and has all requisite  power,
authorizations, consents, and approvals necessary to own its assets and carry on
its  business  as now  being  conducted,  and  to  consummate  the  transactions
contemplated herein and in the Transfer Documents.

                  (b) Except as disclosed in Exhibit 12(b)  attached  hereto and
made a part hereof for all purposes,  neither the execution of this Agreement or
the Transfer  Documents nor the  performance  of its  obligations  hereunder and
thereunder  does or will  conflict  with  or  violate  any  provision  of  HVI's
constituent  documents;  violate,  conflict  with,  or result  in the  breach or
termination  of, or  constitute  a default,  event of default (or an event which
with  notice,  lapse of time,  or both,  would  constitute a default or event of
default),  under the terms of any material  agreement to which HVI or any of the
Principals  is a party or by  which  HVI or any the  Principals  or any of their
respective  or  collective  securities,  properties,  or  businesses  are bound;
constitute a violation by HVI or any of the  Principals of any laws or judgments
(other than any violation,  conflict,  breach, or default that would not prevent
HVI or any of the Principals from  consummating  the  transactions  contemplated
herein  and in the  Transfer  Documents  or  otherwise  performing  its or their
individual or collective obligations  thereunder);  or result in the creation of
any  lien,  claim,  or  encumbrance  upon  HVI,  any  of  the  Principals,   the
Intellectual Property Rights, or the Technology.

                  (c) Except as disclosed in Exhibit 12(c)  attached  hereto and
made a part hereof for all purposes,  there are no legal or arbitral proceedings
(whether or not the defense thereof or liability with respect thereto is covered
by policies of  insurance)  pending or, to the best  knowledge of HVI and any of
the  Principals,  threatened,  against HVI or any of the Principals  which could
reasonably be expected to prevent HVI or any of the Principals from consummating
the transactions contemplated herein or in the Transfer Documents.

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<PAGE>

                  (d) Except as disclosed in Exhibit 12(d)  attached  hereto and
made a part hereof for all purposes, all negotiations relating to this Agreement
and the Transfer Documents and the transactions  contemplated herein and therein
have been carried on without the  intervention  of any party acting in behalf of
HVI or any of the  Principals  in such manner as to give rise to any valid claim
against HVI or any of the  Principals,  individually  or  collectively,  for any
broker's  or  finder's  fee or similar  compensation  (whether  payable in cash,
Kronos  Shares,  interest  in HVI or the  Outside  Business,  or  otherwise)  in
connection therewith.

                  (e) HVI has all necessary  corporate power and authority,  and
each of the  Principals  have the  power,  legal  capacity,  and  authority,  to
execute, deliver, and perform its and their respective obligations hereunder and
under the Transfer Documents;  and the execution,  delivery,  and performance by
HVI and each of the Principals of this  Agreement and the Transfer  Documents to
which HVI is a party has been duly authorized by all necessary  corporate action
on its part or is within the authority of the person  executing  and  delivering
the same, and is within the authority of each of the Principals.  This Agreement
arid  the  Transfer  Documents  to  which  HVI  and the  Principals  are a party
constitute  the  legal,   valid,  and  binding  obligations  of  each  of  them,
enforceable  against any and all of them in accordance  with the terms  thereof,
except as may be limited by applicable bankruptcy,  insolvency,  reorganization,
or other  similar laws  affecting  creditors'  rights and general  principles of
equity.

                  (f) Except as disclosed in Exhibit 12(f)  attached  hereto and
made a part hereof for all purposes,  HVI and the Principals  have filed all tax
returns and all other tax documentation  that are required to be filed by any of
them,  and have paid all taxes due  pursuant to such  returns or pursuant to any
assessment received by any of them, except for such taxes as are being contested
in good faith by appropriate  proceedings  and for which  adequate  reserves are
being maintained.

                  (g) Except as disclosed in Exhibit 12(g)  attached  hereto and
made a part hereof for all purposes, no authorizations,  approvals,  or consents
of, and no filings or registrations  with, any governmental  agency or authority
are necessary for the execution,  delivery,  and  performance by HVI and each of
the  Principals of this  Agreement  and each of the Transfer  Documents to which
they are a party or for the validity or enforceability thereof.

                  (h) No material statement,  information,  or exhibit disclosed
or otherwise  furnished to TSET by HVI or any of the  Principals  in  connection
with the negotiations among the parties or any  representations  upon which TSET
may have relied,  contains any material misstatement of fact or omits to state a
material fact or any fact necessary to make the statement made not misleading.

                  (i)  HVI  and  each  of the  Principals  shall  at  all  times
hereunder comply with all conditions,  restrictions,  and limitations applicable
to the TSET Shares and the provisions of all federal and state  securities  laws
applicable to the ownership and transfer thereof.

                  (j) No oral or written  compensation  arrangement or agreement
exists,  and no shares or units (or warrants or options to acquire the same), or
revenue interests,  or royalties have been granted, orally or in writing, or are
owned by, HVI's advisory board members.

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<PAGE>

                  (k) Except as disclosed in Exhibit l2(k)  attached  hereto and
made a part hereof for all purposes:

                           (i) HVI and the Principals own full right, title, and
interest in and to the  Intellectual  Property  Rights that are being  assigned,
transferred,  and conveyed to Kronos pursuant to this Agreement and the Transfer
Documents,  free  and  clear of any and all  liens,  claims,  encumbrances,  and
charges, and no licenses or other superior claims, rights, or entitlements exist
or have been granted or suffered to exist by HVI and the  Principals in favor of
any other person with respect thereto; and

                           (ii)  HVI  and  the  Principals  are  unaware  of any
infringements  or  illicit  uses  of the  Intellectual  Property  Rights  or the
Technology by any person.

         13.  BATTELLE.  TSET  hereby  acknowledges  and  agrees  that  HVI  has
disclosed to TSET, and that TSET fully  understands,  the circumstances of HVI's
dispute with Battelle  Memorial  Institute  ("Battelle")  concerning  Battelle's
unauthorized   disclosures  to  third  parties  related  to  HVI's   proprietary
technology  and know-how,  at least part of which  includes in the  Intellectual
Property Rights and the Technology.  HVI hereby represents to TSET that Battelle
has made an offer to settle the dispute, which offer is unacceptable to HVI. HVI
further represents that HVI and Battelle are, as of this date hereof, engaged in
good faith  negotiations  concerning  the terms and  conditions  of a settlement
acceptable  to  HVI.  Based  on  the  foregoing  and  other  factors,  including
correspondence  and  other  materials  requested  from  and  supplied  to HVI by
Battelle,  HVI  believes  in good faith that HVI's  position  in the  dispute is
strong and that HVI will be able to settle its differences with Battelle without
resorting to formal legal  proceedings.  Accordingly,  TSET agrees that its sole
remedy and recourse,  in the event that Battelle makes any claim in formal legal
proceedings or otherwise,  or with respect to any of HVI's  representations  and
warranties herein, shall be against HVI directly and not to any Principal.

         14.  REPRESENTATIONS AND WARRANTIES OF TSET. TSET hereby represents and
warrants to HVI and each of the Principals as follows:

                  (a)  TSET is duly  organized,  validly  existing,  and in good
standing  under  the laws of the State of Nevada  and has all  requisite  power,
authorizations, consents, and approvals necessary to own its assets and carry on
its  business  as now  being  conducted,  and  to  consummate  the  transactions
contemplated herein and in the Transfer Documents.

                  (b) Neither the  execution  of this  Agreement or the Transfer
Documents nor the performance of its  obligations  hereunder and thereunder does
or  will  conflict  with  or  violate  any  provision  of  TSET's   articles  of
incorporation  or bylaws;  violate,  conflict  with,  or result in the breach or
termination  of, or  constitute  a default,  event of default (or an event which
with  notice,  lapse of time,  or both,  would  constitute a default or event of
default),  under the terms of any material agreement to which TSET is a party or
by which  TSET or its  securities,  properties,  or  businesses  are  bound;  or
constitute  a  violation  by  TSET of any  laws or  judgments  (other  than  any
violation,  conflict,  breach,  or  default  that  would not  prevent  TSET from
consummating the transactions  contemplated herein and in the Transfer Documents
or otherwise performing its obligations thereunder).

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<PAGE>

                  (c) There is no proceeding (whether or not the defense thereof
or liability with respect  thereto is covered by policies of insurance)  pending
or, to TSET's best knowledge, threatened, against TSET which could reasonably be
expected to prevent TSET from consummating the transactions  contemplated herein
or in the Transfer Documents.

                  (d) TSET has all  necessary  corporate  power and authority to
execute,  deliver, and perform its obligations  hereunder and under the Transfer
Documents;  and  the  execution,  delivery,  and  performance  by  TSET  of this
Agreement  and the  Transfer  Documents  to  which it is a party  has been  duly
authorized  by all  necessary  corporate  action  on its part or is  within  the
authority of the person  execution and delivering  the same.  This Agreement and
the Transfer Documents to which TSET is a party constitute the legal, valid, and
binding obligations of TSET, enforceable against it in accordance with the terms
thereof,  except  as  may  be  limited  by  applicable  bankruptcy,  insolvency,
reorganization,  or other similar laws affecting  creditors'  rights and general
principles of equity.

         15. PAR STOCK PURCHASE.  TSET shall have the right (the "Share Purchase
Right")  to  purchase  any and all  authorized  but  unissued  shares of Kronos'
capital stock (the "Unissued Shares") at a per share purchase price equal to the
par value  thereof  ($0.001 par value per share);  provided,  however,  that the
Share  Purchase  Right  shall not apply to the shares of Kronos'  capital  stock
reserved for  issuance in  connection  with  Programs to be adopted by Kronos as
contemplated  in Section 9 hereof.  TSET shall be entitled to exercise the Share
Purchase  Right at any time it feels its interests  would be served by so doing,
upon not less  than 5 days'  prior  written  notice  to  Kronos  (the  "Exercise
Notice"),  without  the  need to  obtain  any  further  consent  from  HVI,  the
Principals,  or Kronos, or to provide any further justification  therefor.  Upon
receipt of the Exercise  Notice,  Kronos  shall not offer,  solicit any offer to
buy, sell, assign, transfer, or convey any of the Unissued Shares without TSET's
prior  written  consent,  which consent may be withheld in the sole and absolute
discretion thereof. The Principals,  in their capacities as directors of Kronos,
agree to take all  actions  requested  by TSET in order to give  effect  to this
Section 14 in the event TSET elects to purchase  the  Unissued  Shares  pursuant
hereto. TSET shall pay the purchase price for that number of the Unissued Shares
to be acquired  pursuant to exercise of the Share  Purchase Right within 30 days
of the date of the Exercise Notice. Upon confirmed receipt of the purchase price
therefor,  Kronos' board of directors shall cause certificates representing that
number of Unissued Shares purchased by TSET pursuant to the Share Purchase Right
to be issued and  delivered to TSET in such  denominations  as TSET may request.
TSET shall be entitled to  immediately  exercise the Share Purchase Right if any
transaction contemplated by Kronos may involve the sale, assignment, or transfer
of more  than 50% of  Kronos'  authorized  capital  to any  person  not owned or
controlled  by TSET.  TSET  and the  Principals  shall  cause  Kronos'  board of
directors to ratify this Section 14, such that no further  action  thereof shall
be required  relating to the issuance of the Unissued Shares to TSET, other than
instructions  issued by TSET to any executive  officer of Kronos pursuant to the
Exercise Notice. The Share Purchase Rights shall survive any recapitalization of
Kronos and shall apply to any additional  shares of Kronos'  capital stock which
may be newly authorized  pursuant to any future amendment of Kronos' articles of
incorporation  or which  may  remain  unsold  following  any  transactions  with
prospective  investors  or strategic  business or  financial  partners of Kronos
involving such newly-issued shares.

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<PAGE>

         15. BOOKS,  RECORDS,  AND AUDIT RIGHTS.  (a) The  Principals,  in their
capacities as directors and executive officers of Kronos,  shall cause Kronos to
keep complete,  accurate,  and secure original physical and electronic books and
records of all financial,  business,  legal, and other  transactions.  Financial
books and records shall be made,  kept,  and maintained on a calendar year basis
in  accordance  with  generally  accepted  accounting  principles  applied  on a
consistent,   uniform,  and  non-discriminatory  basis  and  applicable  to  the
Corporate Business.

                  (b) The  books  and  records  of  Kronos,  together  with  all
documents and other information pertaining to Kronos' business, shall be kept at
Kronos' principal place of business,  and shall at all reasonable times (and for
a period of 3 years following any termination of this Agreement and the Transfer
Documents) be available for physical inspection,  examination, and audit and may
be  copied  and  excerpts  may  be  taken  therefrom,  by  any  duly  authorized
representative  of TSET.  TSET shall at all times be  entitled  to,  among other
things, exercise TSET's audit rights, verify any information provided to TSET by
Kronos pursuant to this Section 15 or otherwise,  and monitor Kronos' compliance
with its obligations.

                  (c) At all times  (and for a period of 3 years  following  any
termination of this Agreement and the Transfer  Documents),  TSET shall have the
right, at its own expense, to audit Kronos' books and records. Kronos shall make
such books and records  available  for physical  inspection,  review,  and audit
during normal  business hours and upon 48 hours' prior written notice from TSET,
to any authorized representative,  certified public accountant, or legal counsel
designated by TSET.

                  (d) Kronos's  board of directors  shall do the  following,  at
Kronos' expense:

                           (i)  deliver  to TSET on or  before  March 15 of each
year cause an annual report  containing an audited  balance sheet and profit and
loss and cash flow statements to be prepared by Kronos' auditors; and

                           (ii) deliver to TSET on or before the  fifteenth  day
following  the end of each  calendar  month,  cause to be  prepared on a monthly
basis an unaudited  balance  sheet and  unaudited  profit and loss and cash flow
statements for the month and  cumulatively  for the calendar year to date (to be
certified by Kronos'  president  and chief  financial  officer as being true and
correct to the best of their knowledge).

         16.  DISTRIBUTION  OF  PROFITS.  The parties  agree  that,  as the sole
stockholder of Kronos,  all profits  resulting from the conduct of the Corporate
Business shall belong to TSET,  and that TSET shall be entitled to  distribution
thereof from Kronos on a regular  basis.  The  Principals,  in their capacity as
directors of Kronos,  agree to vote in favor of such  distributions as requested
from time to time by TSET.  TSET hereby  covenants that it shall,  in connection
with any request for such  distribution,  ensure that  sufficient  cash  remains
allocated to Kronos to provide for three months  operating  and working  capital
needs for the continuation and advancement of the Corporate Business, funding of
Programs  relating to  profit-sharing  or other  benefits  plans in favor of the
Principals  according  to  the  terms  thereof,  plus  reasonable  reserves  for
contingencies or extraordinary items. In connection with any request by TSET for
a cash  distribution,  TSET and  Kronos'  board of  directors  shall  consult to
determine Kronos' reasonable cash needs, as provided above.

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<PAGE>

         17. INDEMNIFICATION. (a) HVI shall indemnify, defend, and hold harmless
TSET and  Kronos  from and  against  any and all third  party  claims of patent,
intellectual property, or proprietary rights infringement (and including any and
all damages, losses, fines, penalties, royalties, costs and expenses arising out
of or associated therewith,  including reasonable  attorney's fees,  hereinafter
collectively  referred to as  "losses")  which may be asserted  against  TSET or
Kronos on the grounds that the Intellectual Property Rights, the Technology,  or
any device or other  manifestation  thereof,  infringe  upon such third  party's
rights,  provided that such claim arises out of any event,  fact or circumstance
occurring prior to the transfer of the  Intellectual  Property Rights to Kronos.
HVI shall not enter  into any  settlement  or  compromise  of any such  claim or
action without TSET's prior written  consent.  TSET and Kronos shall be entitled
to  participate  in or conduct  the  defense of any such  claims,  with the cost
thereof to be for the  account of HVI and HVI and shall pay to TSET and  Kronos,
as the case may be, the amount of any losses and  reimburse  the  expense of any
defense  undertaken  by TSET or Kronos  within 10 days after  receipt of written
notice  therefor.  Any claims  arising  after the  transfer of the  Intellectual
Property Rights to Kronos shall be the sole responsibility of Kronos and TSET.

                  (b)    Anything   in   this    Agreement   to   the   contrary
notwithstanding,  TSET hereby  acknowledges  and agrees that the  Principals are
parties to this Agreement for the purpose of, among other things,  assigning the
Intellectual  Property  Rights and the  Technology  to Kronos and  effecting the
exchange of stock described in this  Agreement,  and that TSET's sole remedy and
recourse, in the event of any breach of any representation, warranty or covenant
by HVI set forth herein, shall be to HVI directly and not to any Principal.

                  (c) TSET and HVI shall  indemnify,  defend  and hold  harmless
each other from and  against  any and all third party  losses  arising  from any
breach hereunder or in the event any  representation  or warranty made by either
of them herein is untrue or misleading in any material  respect and, as a result
thereof,  either TSET or HVI, as the case may be, suffers a loss. The Principals
shall have the  indemnification  obligation  described in this Section 17 to the
extent of any breach by them of any of their  obligations  hereunder  including,
without limitation,  those obligations  described in Section 5 hereof, or in the
event any representation or warranty made by them is untrue or misleading in any
material respect and, as a result thereof, a loss is suffered by TSET; provided,
however,  that only the individual Principal that has committed a breach of this
Agreement or has made an untrue or misleading representation or warranty to TSET
shall have the indemnification obligation described in this Section 17.

         18.  ARBITRATION.  (a) In the event of any default or dispute  between,
breach by, or other  controversy  involving,  the parties  hereto  regarding the
subject  matter of this  Agreement  or the  Transfer  Documents  (in any case, a
"Dispute"),  the parties shall exert their respective good faith best efforts to
amicably resolve and settle the same. Toward this end, the parties shall consult
and negotiate with each other in good faith and understanding  their mutual best
interests to reach a just and  equitable  solution  reasonably  satisfactory  to
them. In the event the Dispute cannot be amicably  resolved and settled  through
good faith negotiations,  the parties agree to submit the Dispute to arbitration
rather than litigation.

                  (b) All  arbitration  proceedings  instituted  by the  parties
hereunder shall take place in Clackamas County,  Oregon and shall be governed by
the rules of the American  Arbitration  Association  (the "AAA")  applicable  to
contracts  of this type.  If the  parties  to the  Dispute  cannot  agree on the

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appointment  of an  arbitrator,  the parties agree that the AAA shall appoint an
independent  arbitrator,  whose  decision  shall be final and  binding  upon the
parties  and not  subject  to  appeal  to any  court  or  government  agency  or
authority,  and shall be  enforceable  in any court of  competent  jurisdiction;
provided,  however,  that the arbitrator  shall not award or require the payment
of, and the  parties  shall not seek,  incidental,  consequential,  or  punitive
damages  except in cases of bad faith  breach of this  Agreement or the Transfer
Documents,  gross negligence, or willful misconduct.  The parties shall not seek
to delay or prevent the  implementation  of any decision of the arbitrator.  The
prevailing  party in any  arbitration  brought  hereunder  shall be  entitled to
recover  reasonable  attorney's  fees and  related  costs  and  expenses  of the
arbitration.

                  (c) The  parties  each  acknowledge  that their  agreement  to
resolve  Disputes  through  arbitration  constitutes  a waiver of their right to
resolve Disputes in any court,  and that in arbitration  proceedings the parties
may not be entitled to all of the rights that would  otherwise  be  available to
them in court proceedings.

         19. GENERAL PROVISIONS.

                  (a) INTEGRATION AND AMENDMENT. This Agreement and the Transfer
Documents  constitute the entire  agreement  between the parties with respect to
the subject matter hereof and supercedes all prior agreements and understandings
with respect hereto and thereto.  No other  agreement,  whether oral or written,
shall  be  used  to  modify  or  contradict  the  provisions  hereof  or of  any
Transaction  Document unless the same is in writing,  signed by the parties, and
states that it is  intended to amend the  provisions  of this  Agreement  or any
Transaction Document.

                  (b)  COUNTERPARTS.  This Agreement and the Transfer  Documents
may be executed in multiple  counterparts  (and by  facsimile  signature,  to be
followed by manual  signature),  each of which shall be deemed an original,  and
all of which  shall be  deemed  to  constitute  a  single  agreement,  document,
instrument, or certificate, as the case may be.

                  (c) BINDING EFFECT.  This Agreement and the Transfer Documents
shall be binding  upon and inure to the  benefit of the heirs,  successors,  and
permitted  assigns of the parties hereto;  provided,  however,  that HVI and the
Principals  shall not assign any of their  respective  rights or delegate any of
their  respective  responsibilities  without the prior written consent of Kronos
and TSET,  which  consent may be withheld  in the sole and  absolute  discretion
thereof.

                  (d) WAIVER.  No failure by any party to this  Agreement or any
Transfer Document to exercise, no delay in exercising,  and no course of dealing
with respect to, any right, power, or privilege hereunder or any other document,
instrument,  or certificate  relating  hereto,  shall operate as a waiver or any
relinquishment for the future thereof;  and no single or partial exercise of any
right,  power,  or privilege  hereunder or any other  document,  instrument,  or
certificate relating hereto shall preclude any other or further exercise thereof
or the exercise of any other right, power, or privilege.

                  (e)  SEVERABILITY.  If any provision  (or portion  thereof) of
this Agreement or any Transfer  Document is adjudged illegal or unenforceable by
a court of competent  jurisdiction,  the remaining provisions shall nevertheless
continue  in full force and  effect.  In any such  case,  the  provision  deemed
illegal or  unenforceable  shall be remade or  interpreted  by the  parties in a

Page 14
<PAGE>

manner that such  provision  shall be  enforceable  to preserve,  to the maximum
extent possible, the original intention and meaning thereof.

                  (f) NOTICES. All notices or other communications given or made
hereunder  or  under  any  Transfer  Document  shall  be in  writing  and may be
delivered personally, by express,  registered, or certified mail (return receipt
requested),  by special courier, or by facsimile transmission (to be followed by
delivery of a written original notice in the most  expeditious  manner possible,
as aforesaid),  all postage, fees, and charges prepaid, to TSET, Kronos, HVI, or
any of the Principals, as the case may be, to the following addresses (which may
be  changed  by the  parties  from time to time  upon  written  notice  given as
aforesaid):

<TABLE>
<S>                                                      <C>
                   TO TSET:                              333 South State Street, PMB 111
                                                         Lake Oswego, OR 97034
                                                         Tel: 503.293.1270
                                                         Fax:     503.635.4452 and
                                                                  503.293.7233
                                                         Attn:    Jeffrey D. Wilson
                                                                  Chairman and Chief Executive Officer

                   TO HVI:                               13910 S.E. 23rd Street
                                                         Bellevue, WA 98005
                                                         Tel: 425.746.9647
                                                         Fax: 425.746.0719

                   TO INGRID FUHRIMAN:                   13910 S.E. 23rd Street
                                                         Bellevue, WA 98005
                                                         Tel: 425.746.9647
                                                         Fax: 425.746.0719

                   TO ROBERT L. FUHRIMAN II:             13910 S.E. 23rd Street
                                                         Bellevue, WA 98005
                                                         Tel: 425.746.9647
                                                         Fax: 425.746.0719

                   TO DR. IGOR KRICHTAFOVITCH:           822 S.E. 233rd Street
                                                         Bothell, WA 98021
                                                         Tel: 425.750.9004
                                                         Fax: 425.806.8556

                   TO ALAN THOMSON:                      2411 North 750 East
                                                         Provo, UT 84601
                                                         Tel: 801.360.0456
                                                         Fax: 801.342.2380
</TABLE>

Page 15
<PAGE>

Notices  hereunder  shall  be  deemed  given  when  delivered  in  person,  upon
confirmation of successful  transmission  when sent by telex or facsimile (to be
followed by delivery by express or regular  mail),  or 5 days after being mailed
by express,  registered,  or certified mail (return receipt requested),  postage
prepaid.

                  (g)  HEADINGS.  The headings in this  Agreement are solely for
convenience  of reference  and shall be given no effect in the  construction  or
interpretation of this Agreement.

                  (h) COSTS,  EXPENSES, AND TAXES. Each party shall bear its own
costs,  expenses,  and  taxes  incurred  or  associated  with  the  transactions
contemplated herein and in the Transfer Documents.

                  (i)  GOVERNING  LAW. This  Agreement  shall be governed by and
construed in accordance  with the laws of the State of Oregon,  exclusive of its
conflicts of laws principles.

                        [SIGNATURES APPEAR ON NEXT PAGE]

Page 16
<PAGE>

         IN WITNESS  WHEREOF,  the parties  have  executed  and  delivered  this
Agreement effective as of the date first written above.

TSET, Inc.

By:      /s/ Jeffrey D. Wilson
    ----------------------------------------------------------
         Jeffrey D. Wilson
         Chairman and Chief Executive Officer

HIGH VOLTAGE INTEGRATED, LLC

By:      /s/ Alan Thomson
    ----------------------------------------------------------
         Name: Alan Thomson
               -----------------------------------------------
         Authorized Signatory

 /s/ Ingrid Fuhriman
--------------------------------------------------------------
Ingrid Fuhriman, individually

 /s/ Igor Krichtafovitch
--------------------------------------------------------------
Igor Krichtafovitch, individually

 /s/ Robert L. Fuhriman II
--------------------------------------------------------------
Robert L. Fuhriman II, individually

 /s/ Alan Thomson
--------------------------------------------------------------
Alan Thomson, individually

Page 17
<PAGE>

         LIST OF EXHIBITS

                  EXHIBIT 2A -- DESCRIPTION OF TRANSFER  DOCUMENTS
                  EXHIBIT 2B -- INTELLECTUAL  PROPERTY  RIGHTS
                  EXHIBIT 4 -- CALCULATION OF THE AGGREGATE SHARES
                  EXHIBIT 7 -- FUTURE  APPLICATIONS
                  EXHIBIT 8A -- SCHEDULE OF POTENTIAL LIABILITIES
                  EXHIBIT 8B -- SCHEDULE OF INITIAL  FUNDING  PAYMENTS
                  EXHIBIT 11 -- FORM OF  EMPLOYMENT AGREEMENT
                  EXHIBIT 12(b) -- DEFAULTS AND BREACHES
                  EXHIBIT 12(c) --  LITIGATION
                  EXHIBIT 12(c) -- FINDERS AND BROKERS
                  EXHIBIT 12(f) -- TAXES
                  EXHIBIT 12(g) -- CONSENTS AND APPROVALS
                  EXHIBIT 12(k) -- ENCUMBRANCES, LIENS, OR SUPERIOR CLAIMS UPON
                                   THE INTELLECTUAL PROPERTY RIGHTS AND THE
                                   TECHNOLOGY; INFRINGEMENTS

Page 18
<PAGE>

                                   EXHIBIT 2A

                        DESCRIPTION OF TRANSFER DOCUMENTS

<PAGE>

                             ASSIGNMENT OF INVENTION

            (United States Patent Application Serial No. 09/419,720)

                                      from

                         HIGH VOLTAGE INTEGRATED, L.L.C.

                                       to

                            KRONOS TECHNOLOGIES, INC.

         In  consideration  of the payment by ASSIGNEE to ASSIGNOR of the sum of
One Dollar ($1.00) and for other good and valuable  consideration the receipt of
which is hereby acknowledged,  HIGH VOLTAGE INTEGRATED,  L.L.C. ("ASSIGNOR"),  a
Washington  limited  liability  company,  of 13910 S. E. 23rd Street,  Bellevue,
Washington 98005, United States of America, hereby sells, assigns, and transfers
to KRONOS TECHNOLOGIES,  INC. ("ASSIGNEE"), a Nevada corporation,  whose address
is 13910 S. E.  23rd  Street,  Bellevue,  Washington  98005,  United  States  of
America, and the successors, assigns, and legal representatives of the ASSIGNEE,
the entire right,  title, and interest for the United States and its territorial
possessions  and for all  foreign  countries,  including  all  rights  to  claim
priority,  in and to any and all  inventions  that are  disclosed  in the patent
application which is entitled  "Electrostatic  Fluid  Accelerator," I.E., United
States Patent Application Serial No. 09/419,720, filed on October 14, 1999, and,
in and to, all  Letters  Patent to be  obtained  for said  invention  and, as to
letters  patent,  any  reissue,  re-examination,  or  extension  thereof and any
related statutorily provided periods of market exclusivity.

         ASSIGNOR  hereby  represents  and warrants  that no  assignment,  sale,
agreement,  or  encumbrance  has been,  or will be, made or entered  which would
conflict with or be prior in right to this Assignment.

         ASSIGNOR  further  covenants that ASSIGNEE will,  upon its request,  be
promptly  provided  with all  pertinent  facts and  documents  relating  to said
invention  and said  Letters  Patent and legal  equivalents  as may be known and
accessible  to ASSIGNOR  and that  ASSIGNOR  will  testify as to the same in any
interference,  litigation, or other proceeding related thereto and will promptly
execute and deliver to ASSIGNEE or its legal representatives any and all papers,
instruments,  or affidavits required to apply for, obtain, maintain,  issue, and
enforce said Letters Patent and said equivalents  thereof which may be necessary
or desirable to accomplish the purposes thereof or of this Assignment.

         ASSIGNOR  additionally  warrants that this  Assignment is an authorized
act of ASSIGNOR.

ASSIGNMENT OF INVENTION (United States
Patent No. 5,359,103)                                                Page 1 of 2

<PAGE>

         IN WITNESS  WHEREOF,  I have hereunto set hand and seal this ______ day
of March, 1998.

                                    ASSIGNOR:

                                    HIGH VOLTAGE INTEGRATED, L.L.C.

                                    By /s/   Alan Thomson
                                       -----------------------------------
                                         Alan Thomson
                                         Its Manager

                                 Acknowledgment

STATE OF WASHINGTON        )
                                    : ss
County of King             )

         The foregoing instrument, I.E., Assignment of Invention (United States
Patent Application Serial No. 09/419,720), was acknowledged before me this
______ day of March, 2000, by Robert L. Fuhriman, Jr., who is the manager of
High Voltage Integrated, L.L.C.

                                      -----------------------------------------
                                      NOTARY PUBLIC:

                                      Residing at:

                                      My commission expires:

ASSIGNMENT OF INVENTION (United States
Patent No. 5,359,103)                                                Page 2 of 2

<PAGE>

                                    EXHIBIT 7

                               FUTURE APPLICATIONS

Shipbuilding (military/commercial - foreign/domestic)
Aircraft (military/commercial - foreign/domestic
Military Vehicles (foreign/domestic)

<PAGE>

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