Document:

PRIVATE EQUITY LINE OF CREDIT AGREEMENT

                                     Between

                          Investwell Investments Limted

                                       And

                         Geotec Thermal Generators, Inc.

         PRIVATE EQUITY LINE OF CREDIT AGREEMENT dated as of August 2, 2000 (the
"Agreement"),  between Investwell  Investments  Limted, a British Virgin Islands
corporation (the "Investor") and Geotec Thermal Generators,  Inc., a corporation
organized and existing under the laws of the State of Florida (the "Company").

         WHEREAS,  the parties  desire  that,  upon the terms and subject to the
conditions  contained herein,  the Company shall issue and sell to Investor from
time to time as provided  herein,  and Investor shall purchase,  up to 6,000,000
shares (the "Aggregate Purchase Amount") of the Common Stock (as defined below);
and

         WHEREAS,  such  investments  will be made by the  Investor as statutory
underwriter of a registered  indirect  primary  offering of such Common Stock by
the Company.

         NOW,  THEREFORE,  in consideration of the foregoing  premises,  and the
promises and covenants  herein  contained,  the receipt and sufficiency of which
are hereby  acknowledged  by the parties  hereto,  the parties,  intending to be
legally bound, hereby agree as follows:

ARTICLE I

                               Certain Definitions

Section  1.1 "Bid  Price"  shall  mean the  closing  bid price (as  reported  by
Bloomberg  L.P.) of the  Common  Stock on the  Principal  Market  on the date in
question.

Section 1.2 "Capital  Shares"  shall mean the Common Stock and any shares of any
other class of common  stock  whether now or  hereafter  authorized,  having the
right to participate in the distribution of earnings and assets of the Company.

Section 1.3 "Capital Shares  Equivalents" shall mean any securities,  rights, or
obligations  that are convertible  into or exchangeable for or give any right to
subscribe  for any  Capital  Shares of the Company or any  warrants,  options or
other rights to subscribe for or purchase Capital Shares or any such convertible
or exchangeable securities.

Section 1.4  "Closing"  shall mean one of the closings of a purchase and sale of
the Common Stock pursuant to Section 2.1.

Section 1.5 "Closing  Date" shall mean,  with  respect to a Closing,  the Second
Trading Day following the end of the Valuation  Period  related to such Closing,
provided all  conditions  to such Closing have been  satisfied on or before such
Trading Day.

Section 1.6 "Commitment Amount" shall mean the dollar amount necessary which the
Investor  has  agreed to  provide  to the  Company  in order to  purchase  up to
6,000,000 Put Shares pursuant to the terms and conditions of this Agreement.

Section  1.7  "Commitment  Period"  shall  mean  the  period  commencing  on the
Effective  Date and  expiring on the  earliest to occur of (x) the date on which
the  Investor  shall  have  purchased  6,000,000  Put  Shares  pursuant  to this
Agreement, (y) the date this Agreement is terminated pursuant to Section 2.4, or
(z) the date occurring  twenty four (24) months from the date of commencement of
the Commitment Period.

Section 1.8   "Common Stock" shall mean the Company's common  stock,  par  value
$.001 per share.

Section 1.9   "Condition Satisfaction Date" shall have the meaning set  forth in
Section 7.2.

Section  1.10 "Effective  Date"  shall  mean  the date on  which  the SEC  first
declares effective a Registration  Statement registering the sale by the Company
and resale by the Investor of the Registrable Securities as set forth in Section
7.2(f).

Section 1.11  "Escrow Agent" shall mean  the  escrow  agent  designated  in  the
Escrow Agreement.

Section 1.12  "Escrow Agreement"  shall  mean  the  escrow agreement in the form
attached hereto as Exhibit A.
                   ---------

Section 1.13  "Exchange Act" shall mean the Securities  Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

Section 1.14  "Investment Amount" shall mean the dollar amount to be invested by
the  Investor to purchase Put Shares with respect to any Put Date as notified by
the Company to the Investor, all in accordance with Section 2.2 hereof.

Section 1.15  "Market Price" on any given date shall mean the average of the two
(2) lowest Bid Prices (as reported by Bloomberg L.P.) of the Common Stock during
the Valuation Period relating to such date.

Section 1.16  "Material  Adverse  Effect" shall mean any effect on the business,
Bid Price,  operations,  properties,  prospects,  or financial  condition of the
Company  that is material  and adverse to the Company and its  subsidiaries  and
affiliates, taken as a whole, and/or any condition,  circumstance,  or situation
that would  prohibit or otherwise  interfere  with the ability of the Company to
enter  into  and  perform  any of its  obligations  under  this  Agreement,  the
Registration Rights Agreement or the Escrow Agreement in any material respect.

Section 1.17  "Maximum Put Amount" shall mean, as of any Put Date, the lesser of
a) $2,500,000 or b) fifteen  percent (15%) of the weighted  average price of the
Common  Stock  during  the 20  Trading  Days  immediately  prior to the Put Date
multiplied by the total trading volume of the Common Stock during the 20 Trading
Days immediately prior to the Put Date.

Section 1.18  "NASD" shall mean the National Association of Securities  Dealers,
Inc.

Section 1.19  "Outstanding" when used with reference to shares of  Common  Stock
or Capital Shares (collectively the "Shares"),  shall  mean,  at any date as  of
which the  number of such Shares is to be determined, all issued and outstanding
Shares,  and shall  include all such Shares  issuable in respect of  outstanding
scrip or any  certificates  representing  fractional  interests  in such Shares;
provided,  however,  that  "Outstanding"  shall  not mean any such  Shares  then
directly or indirectly owned or held by or for the account of the Company.

Section 1.20  "Person" shall mean an individual, a corporation, a partnership, a
limited  liability  company,  an  association,   a  trust  or  other  entity  or
organization,  including a government or political  subdivision  or an agency or
instrumentality thereof.

Section 1.21  "Principal  Market" shall mean the OTC Bulletin  Board, the NASDAQ
National Market,  the NASDAQ SmallCap Market, the American Stock Exchange or the
New York Stock Exchange, whichever is at the time the principal trading exchange
or market for the Common Stock.

Section  1.22 "Purchase   Price"  shall  mean   with   respect  to  Put  Shares,
eighty-eight percent (88%) (the "Purchase Price Percentage") of the Market Price
during the  Valuation  Period  related to a Put (or such other date on which the
Purchase Price is calculated in accordance with the terms and conditions of this
Agreement).

Section 1.23  "Put" shall mean each  occasion the Company   elects  to  exercise
its right to tender a Put Notice  requiring  the Investor to purchase  shares of
the Company's Common Stock, subject to the terms of this Agreement.

Section 1.24  "Put Date" shall mean the Trading Day during the Commitment Period
that a Put  Notice to sell  Common  Stock to the  Investor  is deemed  delivered
pursuant to Section 2.2(b) hereof.

Section 1.25  "Put Notice"  shall mean a written  notice to the Investor setting
forth the Investment  Amount that the Company intends to sell to the Investor in
the form attached hereto as Exhibit B.

Section  1.26 "Put  Shares"  shall  mean all  shares  of  Common  Stock or other
securities  issued or issuable  pursuant to a Put that has occurred or may occur
in accordance with the terms and conditions of this Agreement.

Section 1.27  "Registrable Securities" shall mean the Put Shares and the Warrant
Shares  until (i) all Put  Shares  and  Warrant  Shares  have been  disposed  of
pursuant to the Registration  Statement,  (ii) all Put Shares and Warrant Shares
have been sold under circumstances under which all of the applicable  conditions
of Rule 144 (or any similar  provision  then in force) under the  Securities Act
("Rule  144")  are met,  (iii)  all Put  Shares  and  Warrant  Shares  have been
otherwise  transferred to persons who may trade such shares without  restriction
under the  Securities  Act, and the Company has delivered a new  certificate  or
other evidence of ownership for such securities not bearing a restrictive legend
or (iv) such time as, in the opinion of counsel to the  Company,  all Put Shares
and Warrant  Shares may be sold without any time,  volume or manner  limitations
pursuant  to Rule  144(k) (or any similar  provision  then in effect)  under the
Securities Act.

Section 1.28  "Registration Rights Agreement" shall mean the agreement regarding
the  filing  of the  Registration  Statement  for the  sale  and  resale  of the
Registrable Securities annexed hereto as Exhibit C.

Section 1.29  "Registration  Statement"  shall mean a registration  statement on
Form S-3 (if use of such form is then  available to the Company  pursuant to the
rules of the SEC and, if not, on such other form promulgated by the SEC, such as
Form S-1 or SB-2, for which the Company then qualifies and which counsel for the
Company shall deem appropriate, and which form shall be available for the resale
by the Investor of the  Registrable  Securities to be  registered  thereunder in
accordance  with the  provisions  of this  Agreement,  the  Registration  Rights
Agreement,  and in accordance  with the intended  method of distribution of such
securities),  for  the  registration  of  the  resale  by  the  Investor  of the
Registrable Securities under the Securities Act.

Section 1.30  "SEC" shall mean the Securities and Exchange Commission.

Section 1.31 "Securities Act" shall mean the Securities Act of 1933, as amended.

Section 1.32 "SEC Documents" shall mean the Company's latest Form 10-K or 10-KSB
as of the time in question,  all Forms 10-Q or 10-QSB and 8-K filed  thereafter,
and the Proxy  Statement  for its latest  fiscal year as of the time in question
until such time as the  Company  no longer has an  obligation  to  maintain  the
effectiveness  of a  Registration  Statement  as set  forth in the  Registration
Rights Agreement.

Section 1.33 "Trading  Cushion"  shall mean the  mandatory  fifteen (15) Trading
Days between Put Dates, unless waived by the Investor.

Section 1.34 "Trading Day" shall mean any day during which the Principal  Market
shall be open for business.

Section 1.35 "Valuation  Event" shall  mean an event in which the Company at any
time  prior  to the end of the  Commitment  Period  takes  any of the  following
actions:

             (a)    subdivides or combines its Common Stock;

             (b)    pays   a   dividend on its Capital Shares or makes any other
                    distribution  of its Capital Shares;

             (c)    issues any additional  Capital Shares  ("Additional  Capital
                    Shares"),  otherwise  than  as  provided  in  the  foregoing
                    Subsections  (a) and (b)  above or (d) and (e)  below,  at a
                    price per share less, or for other consideration lower, than
                    the Bid Price in effect  immediately prior to such issuance,
                    or  without  consideration  (other  than  pursuant  to  this
                    Agreement);

             (d)    issues any  warrants,  options or other  rights to subscribe
                    for or purchase any Additional  Capital Shares and the price
                    per share for which  Additional  Capital  Shares  may at any
                    time  thereafter  be  issuable  pursuant  to such  warrants,
                    options or other  rights shall be less than the Bid Price in
                    effect immediately prior to such issuance;

             (e)    issues any securities  convertible  into or exchangeable for
                    Capital  Shares  and the  consideration  per share for which
                    Additional  Capital  Shares  may at any time  thereafter  be
                    issuable  pursuant  to the  terms  of  such  convertible  or
                    exchangeable  securities shall be less than the Bid Price in
                    effect immediately prior to such issuance;

             (f)    makes  a   distribution   of  its  assets  or  evidences  of
                    indebtedness  to the  holders  of its  Capital  Shares  as a
                    dividend  in  liquidation  or by way of return of capital or
                    other than as a dividend  payable out of earnings or surplus
                    legally  available for dividends under applicable law or any
                    distribution  to such holders made in respect of the sale of
                    all or substantially all of the Company's assets (other than
                    under  the  circumstances  provided  for  in  the  foregoing
                    subsections (a) through (e); or

             (g)    takes any action affecting the number of Outstanding Capital
                    Shares,  other  than  an  action  described  in  any  of the
                    foregoing  Subsections  (a) through  (f) hereof,  inclusive,
                    which in the opinion of the  Company's  Board of  Directors,
                    determined  in good  faith,  would have a  Material  Adverse
                    Effect upon the rights of the Investor at the time of a Put.

Section 1.36 "Valuation  Period" shall mean the period of eight (8) Trading Days
beginning five (5) Trading Days after the Put Date; provided, however, that if a
Valuation Event occurs during a Valuation  Period,  a new Valuation Period shall
begin on the Trading Day  immediately  after the  occurrence  of such  Valuation
Event and end on the 8th Trading Day thereafter.

Section 1.37 "Warrants"  shall  include (i) the  500,000  Common Stock  Purchase
Warrants in the form of Exhibit D to be delivered to the Investor at the Initial
Closing (the  "Initial  Warrants")  and (ii) as to each Closing  Date, a warrant
certificate  in the form of  Exhibit E to  purchase  up to a number of shares of
Common Stock equal to 50% of the number of shares of Common  Stock  purchased by
the Investor on such Closing Date pursuant to this Agreement  (each a "Purchaser
Warrant").  The Common Stock  underlying  the Warrants will be registered in the
Registration  Statement.  "Warrant Shares" shall mean the shares of Common Stock
issuable upon exercise of the Warrants.

<PAGE>

ARTICLE II

                        Purchase and Sale of Common Stock

Section 2.1        Puts.
                   ----

(a) Puts.  Upon the terms and  conditions set forth herein  (including,  without
limitation,  the provisions of Article VII hereof),  on any Put Date the Company
may make a Put by the  delivery of a Put  Notice.  The number of Put Shares that
the Investor shall receive  pursuant to such Put shall be determined by dividing
the Investment Amount specified in the Put Notice by the Purchase Price for such
Valuation Period.  The Investment Amount shall not exceed the Maximum Put Amount
on the Put Date.

(b) Maximum Aggregate Amount of Puts. Anything in this Agreement to the contrary
notwithstanding,  (i) at no time will the  Company  request  a Put  which  would
result in the issuance of an aggregate number of shares of Common Stock pursuant
to this Agreement  (including  pursuant to the Warrants)  which exceeds 19.9% of
the number of shares of Common Stock issued and  outstanding on any Closing Date
without  obtaining  stockholder  approval of such excess issuance,  and (ii) the
Company  may not make a Put to the  extent  that,  after  such  purchase  by the
Investor,  the  sum of the  number  of  shares  of  Common  Stock  and  Warrants
beneficially owned by the Investor and its affiliates would result in beneficial
ownership  by the  Investor  and its  affiliates  of more  than 9.9% of the then
outstanding  shares of Common Stock.  For purposes of the immediately  preceding
sentence,  beneficial  ownership  shall be determined in accordance with Section
13(d) of the Securities and Exchange Act of 1934, as amended.

Section 2.2   Mechanics.

             (a)    Put Notice. At any time  during the Commitment  Period,  the
Company may deliver a Put Notice to the Investor,  subject to the conditions set
forth in Section 7.2; provided, however, that the Investment Amount for each Put
as designated by the Company in the  applicable Put Notice shall be neither less
than $200,000 nor more than the Maximum Put Amount.

             (b)    Date of Delivery of Put Notice. A Put Notice shall be deemed
delivered on (i) the Trading Day it is received by facsimile or otherwise by the
Investor if such notice is received  prior to 12:00 noon Eastern  Time,  or (ii)
the  immediately  succeeding  Trading  Day if it is  received  by  facsimile  or
otherwise after 12:00 noon Eastern Time on a Trading Day or at any time on a day
which is not a Trading Day. No Put Notice may be deemed  delivered on a day that
is not a Trading Day.

Section 2.3  Closings.  On or before each  Closing  Date for a Put the  Investor
shall deliver the Investment Amount specified in the Put Notice by wire transfer
of immediately  available funds to the Escrow Agent. In addition, on or prior to
the Closing  Date,  each of the Company and the  Investor  shall  deliver to the
Escrow Agent all documents, instruments and writings required to be delivered or
reasonably  requested by either of them  pursuant to this  Agreement in order to
implement  and effect the  transactions  contemplated  herein.  Upon  receipt of
notice  from the  Escrow  Agent  that the  Escrow  Agent has  possession  of the
Investment Amount, the Company shall, if possible, deliver the Put Shares to the
Investor's account through the Depository Trust Company DWAC system, per written
account  instructions  delivered  by the  Investor  to the  Company,  and if the
Company is not eligible to  participate  in the DWAC  system,  to deliver to the
Escrow  Agent  one  or  more   certificates,   as  requested  by  the  Investor,
representing the Put Shares to be purchased by the Investor  pursuant to Section
2.1 herein, registered in the name of the Investor or, at the Investor's option,
registered  in the name of such account or accounts as may be  designated by the
Investor.  Payment of funds to the Company and delivery of the  certificates  to
the Investor (unless  delivered by DWAC) shall occur out of escrow in accordance
with the Escrow Agreement, provided, however, that to the extent the Company has
not paid the fees,  expenses,  and  disbursements  of the Investor's  counsel in
accordance  with  Section  13.7,  the  amount  of  such  fees,   expenses,   and
disbursements shall be paid in immediately  available funds, at the direction of
the  Investor,  to  Investor's  counsel  with no  reduction in the number of Put
Shares issuable to the Investor on such Closing Date.

Section 2.4  Termination of Investment Obligation.

             (a)    The  obligation  of  the  Investor  to  purchase  shares of
Common Stock shall  terminate  permanently  (including with respect to a Closing
Date that has not yet occurred) in the event that (i) there shall occur any stop
order or suspension of the  effectiveness of the  Registration  Statement for an
aggregate  of thirty (30)  Trading Days during the  Commitment  Period,  for any
reason other than deferrals or suspensions in accordance  with the  Registration
Rights  Agreement  as a  result  of  corporate  developments  subsequent  to the
Effective Date that would require such  Registration  Statement to be amended to
reflect  such event in order to  maintain  its  compliance  with the  disclosure
requirements of the Securities Act or (ii) the Company shall at any time fail to
comply with the requirements of Section 6.2, 6.3 or 6.5.

             (b)    The obligation of the  Company  to sell  Put  Shares  to the
Investor  shall  terminate if the Investor  fails to honor any Put Notice within
two (2) Trading Days of the Closing Date scheduled for such Put, and the Company
notifies Investor of such termination.  Upon such termination, the Company shall
maintain the Registration Statement in effect for such reasonable period, not to
exceed  forty-five (45) days, as the Investor may request in order to dispose of
any remaining Put Shares.  Such  termination  shall be the Company's sole remedy
for the Investor's failure to honor a Put.

Section 2.5  Additional Shares.In the event that (a) within five Trading Days of
any Closing  Date,  the Company  gives  notice to the  Investor of an  impending
"blackout  period" in accordance  with Section 3(f) of the  Registration  Rights
Agreement and (b) the Bid Price on the Trading Day  immediately  preceding  such
"blackout  period"  (the "Old Bid  Price") is greater  than the Bid Price on the
first Trading Day  following  such  "blackout  period" (the "New Bid Price") the
Company shall issue to the Investor a number of additional shares (the "Blackout
Shares")  equal to the  difference  between  (y) the  product  of the  number of
Registrable  Securities  purchased by the  Investor on such most recent  Closing
Date and still held by the Investor  during such "blackout  period" that are not
otherwise  freely tradable during such "blackout  period" and the Old Bid Price,
divided  by the New Bid  Price  and (z) the  number  of  Registrable  Securities
purchased by the Investor on such most recent Closing Date and still held by the
Investor  during such "blackout  period" that are not otherwise  freely tradable
during such "blackout period". If any issuance would result in the issuance of a
number of shares which exceeds the number set forth in Section  2.1(b),  then in
lieu of such issuance,  the Company shall pay the Investor the closing ask price
of the  Blackout  Shares  on the  first  Trading  Day  following  the end of the
blackout period in cash within five Trading Days.

Section 2.6  Liquidated Damages.  The parties hereto  acknowledge and agree that
the  obligation to issue  Registrable  Securities  under Section 2.5 above shall
constitute liquidated damages and not penalties. The parties further acknowledge
that (a) the amount of loss or damages  likely to be incurred is incapable or is
difficult to precisely estimate, (b) the amounts specified in such Sections bear
a reasonable  proportion and are not plainly or grossly  disproportionate to the
probable  loss  likely to be incurred by the  Investor  in  connection  with the
failure  by the  Company to timely  cause the  registration  of the  Registrable
Securities or in  connection  with a "blackout  period"  under the  Registration
Rights  Agreement,  and (c) the parties are  sophisticated  business parties and
have been  represented  by legal  and  financial  counsel  and  negotiated  this
Agreement at arm's length.

ARTICLE III

                   Representations and Warranties of Investor

Investor represents and warrants to the Company that:

Section 3.1  Intent. The Investor is entering  into this  Agreement  for its own
account  and the  Investor  has no present  arrangement  (whether or not legally
binding)  at any time to sell the  Common  Stock to or  through  any  person  or
entity;  provided,  however,  that by making  the  representations  herein,  the
Investor  does not  agree to hold the  Common  Stock  for any  minimum  or other
specific  term and reserves the right to dispose of the Common Stock at any time
in  accordance  with  federal  and  state  securities  laws  applicable  to such
disposition.

Section 3.2  Sophisticated Investor. The Investor is  a  sophisticated  investor
(as described in Rule 506(b)(2)(ii) of Regulation D) and an accredited  investor
(as defined in Rule 501 of  Regulation  D), and Investor has such  experience in
business  and  financial  matters  that it has the  capacity  to protect its own
interests in connection  with this  transaction and is capable of evaluating the
merits and risks of an  investment in Common  Stock.  The Investor  acknowledges
that an investment in the Common Stock is speculative and involves a high degree
of risk.

Section 3.3  Authority.  This  Agreement  has been duly  authorized  and validly
executed and  delivered by the Investor and is a valid and binding  agreement of
the Investor  enforceable  against it in accordance  with its terms,  subject to
applicable  bankruptcy,  insolvency,  or similar laws  relating to, or affecting
generally  the  enforcement  of,  creditors'  rights  and  remedies  or by other
equitable principles of general application.

Section 3.4  Not  an   Affiliate.  Investor  is  not  an  officer,  director  or
"affiliate"  (as that term is defined in Rule 405 of the Securities  Act) of the
Company.

Section 3.5  Organization  and  Standing. Investor  is   a   corporation   duly
organized,  validly existing, and in good standing under the laws of the British
Virgin Islands.

Section 3.6  Absence of Conflicts. The execution and delivery of this  Agreement
and any other document or instrument  executed in connection  herewith,  and the
consummation of the transactions  contemplated  thereby, and compliance with the
requirements thereof, will not violate any law, rule,  regulation,  order, writ,
judgment, injunction, decree or award binding on Investor, or, to the Investor's
knowledge,  (a) violate any provision of any indenture,  instrument or agreement
to which  Investor is a party or is subject,  or by which Investor or any of its
assets is bound; (b) conflict with or constitute a material default  thereunder;
(c) result in the creation or  imposition  of any lien  pursuant to the terms of
any such  indenture,  instrument  or  agreement,  or  constitute a breach of any
fiduciary duty owed by Investor to any third party;  or (d) require the approval
of any  third-party  (which  has not been  obtained)  pursuant  to any  material
contract,  agreement,  instrument,  relationship  or legal  obligation  to which
Investor is subject or to which any of its assets,  operations or management may
be subject.

Section  3.7 Disclosure;  Access  to  Information.  Investor  has  received  and
reviewed all documents,  records, books and other publicly available information
pertaining to Investor's  investment in the Company that have been  requested by
Investor.  The Company is subject to the periodic reporting  requirements of the
Exchange  Act, and  Investor  has reviewed  copies of any such reports that have
been requested by it.

Section 3.8  Manner of Sale. At no time was Investor presented with or solicited
by or through any leaflet, public promotional meeting,  television advertisement
or any other form of general solicitation or advertising.

Section 3.9  Financial  Capacity. Investor currently has  the financial capacity
to meet its  obligations  to the  Company  hereunder,  and the  Investor  has no
present knowledge of any circumstances  which could cause it to become unable to
meet such obligations in the future.

Section 3.10 Underwriter Liability. Investor understands that it is the position
of the SEC that the  Investor  is an  underwriter  within the meaning of Section
2(11) of the  Securities  Act and that the  Investor  will be  identified  as an
underwriter of the Put Shares in the Registration Statement.

ARTICLE IV

                  Representations and Warranties of the Company

The Company represents and Warrants to the Investor that, except as set forth on
the Disclosure Schedule prepared by the Company and attached hereto:

Section 4.1  Organization  of the  Company.  The Company is a  corporation  duly
incorporated  and  existing  in good  standing  under  the laws of the  State of
Florida and has all requisite  corporate  authority to own its properties and to
carry on its  business as now being  conducted.  The  Company  does not have any
subsidiaries  and does not own more that fifty  percent  (50%) of or control any
other business  entity except as set forth in the SEC Documents.  The Company is
duly  qualified and is in good standing as a foreign  corporation to do business
in every  jurisdiction in which the nature of the business conducted or property
owned by it makes such  qualification  necessary,  other than those in which the
failure so to qualify would not have a Material Adverse Effect.

Section 4.2  Authority.  (i) The Company has the requisite  corporate  power and
corporate  authority  to enter  into and  perform  its  obligations  under  this
Agreement,  the Registration  Rights Agreement,  the Escrow  Agreement,  and the
Warrants  and to issue the Put  Shares,  the  Warrants  and the  Warrant  Shares
pursuant to their respective terms, (ii) the execution, issuance and delivery of
this Agreement,  the Registration Rights Agreement, the Escrow Agreement and the
Warrants  by  the  Company  and  the  consummation  by  it of  the  transactions
contemplated  hereby have been duly authorized by all necessary corporate action
and no further consent or authorization of the Company or its Board of Directors
or stockholders is required,  and (iii) this Agreement,  the Registration Rights
Agreement,  the Escrow  Agreement  and the Warrants  have been duly executed and
delivered by the Company and at the initial Closing shall  constitute  valid and
binding obligations of the Company enforceable against the Company in accordance
with their terms,  except as such  enforceability  may be limited by  applicable
bankruptcy,  insolvency, or similar laws relating to, or affecting generally the
enforcement of, creditors' rights and remedies or by other equitable  principles
of general application. The Company has duly and validly authorized and reserved
for issuance shares of Common Stock sufficient in number for the issuance of the
Put Shares and for the exercise of the Warrants

Section 4.3 Capitalization. The authorized capital stock of the Company consists
of  50,000,000  shares of Common  Stock,  $0.001 par value per  share,  of which
21,469,774 shares are issued and outstanding and no preferred stock.  Except for
(i) outstanding  options and warrants as set forth in the SEC Documents and (ii)
as set forth in the Disclosure Schedule,  there are no outstanding Capital Share
Equivalents nor any agreements or  understandings  pursuant to which any Capital
Shares  Equivalents  may become  outstanding.  The Company is not a party to any
agreement  granting  registration  or  anti-dilution  rights to any person  with
respect to any of its equity or debt securities.  All of the outstanding  shares
of Common Stock of the Company have been duly and validly  authorized and issued
and are fully paid and non-assessable.

Section 4.4  Common Stock. The Company has  registered its Common Stock pursuant
to Section 12(b) or (g) of the Exchange Act and is in full  compliance  with all
reporting  requirements  of the Exchange  Act, and the Company is in  compliance
with all  requirements  for the  continued  listing or  quotation  of its Common
Stock,  and such Common  Stock is currently  listed or quoted on, the  Principal
Market.  As of the date hereof,  the Principal  Market is the OTC Bulletin Board
and the Company has not  received  any notice  regarding,  and to its  knowledge
there is no threat,  of the termination or  discontinuance of the eligibility of
the Common Stock for such listing.

Section 4.5  SEC Documents.  The Company has made available to the Investor true
and complete  copies of the SEC  Documents.  The Company has not provided to the
Investor any information that,  according to applicable law, rule or regulation,
should have been disclosed publicly prior to the date hereof by the Company, but
which has not been so disclosed. As of their respective dates, the SEC Documents
complied in all material respects with the requirements of the Exchange Act, and
rules and  regulations of the SEC  promulgated  thereunder and the SEC Documents
did not  contain  any untrue  statement  of a  material  fact or omit to state a
material  fact  required to be stated  therein or necessary in order to make the
statements  therein,  in light of the circumstances  under which they were made,
not  misleading.  The financial  statements  of the Company  included in the SEC
Documents   complied  in  all  material  respects  with  applicable   accounting
requirements  and the  published  rules  and  regulations  of the  SEC or  other
applicable  rules  and  regulations  with  respect  thereto  at the time of such
inclusion.  Such  financial  statements  have been prepared in  accordance  with
generally  accepted  accounting  principles applied on a consistent basis during
the periods involved (except (i) as may be otherwise indicated in such financial
statements  or the  notes  thereto  or (ii) in the  case  of  unaudited  interim
statements,  to the extent they exclude footnotes or may be condensed or summary
statements) and fairly present in all material  respects the financial  position
of the Company as of the dates  thereof and the results of  operations  and cash
flows for the periods  then ended  (subject,  in the case of  unaudited  interim
statements,  to normal year-end audit adjustments).  Neither the Company nor any
of its subsidiaries has any material indebtedness, obligations or liabilities of
any kind (whether accrued, absolute, contingent or otherwise, and whether due or
to become  due) that would  have been  required  to be  reflected  in,  reserved
against or  otherwise  described  in the  financial  statements  or in the notes
thereto in accordance  with GAAP,  which was not fully  reflected  in,  reserved
against or otherwise described in the financial  statements or the notes thereto
included in the SEC  Documents  or was not  incurred in the  ordinary  course of
business  consistent  with the Company's past  practices  since the last date of
such financial statements.

Section 4.6  Valid Issuances.  When issued and paid for in  accordance  with the
terms hereof or of the Warrants,  the Put Shares and the Warrant  Shares will be
duly and validly issued,  fully paid, and  non-assessable.  Neither the sales of
the Put  Shares,  the  Warrants  or the  Warrant  Shares  pursuant  to,  nor the
Company's performance of its obligations under, this Agreement, the Registration
Rights  Agreement,  the Escrow  Agreement or the Warrants will (i) result in the
creation or  imposition  by the Company of any liens,  charges,  claims or other
encumbrances upon the Put Shares,  the Warrants or the Warrant Shares or, except
as contemplated  herein,  any of the assets of the Company,  or (ii) entitle the
holders of Outstanding Capital Shares to preemptive or other rights to subscribe
for or acquire the Capital  Shares or other  securities of the Company.  The Put
Shares,  the Warrants  and the Warrant  Shares shall not subject the Investor to
personal  liability to the Company or its creditors by reason of the  possession
thereof.

Section 4.7  No Conflicts.  The  execution,  delivery  and  performance  of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated  hereby,  including  without  limitation  the  issuance  of the Put
Shares, the Warrants and the Warrant Shares, do not and will not (i) result in a
violation of the Company's Articles of Incorporation or By-Laws or (ii) conflict
with, or constitute a material default (or an event that with notice or lapse of
time or both  would  become a  default)  under,  or give to others any rights of
termination, amendment, acceleration or cancellation of, any material agreement,
indenture  or  instrument,   or  any  "lock-up"  or  similar  provision  of  any
underwriting  or similar  agreement  to which the  Company is a party,  or (iii)
result in a violation  of any  federal,  state or local law,  rule,  regulation,
order,  judgment  or decree  (including  federal and state  securities  laws and
regulations)  applicable  to the  Company or by which any  material  property or
asset of the  Company is bound or  affected,  nor is the  Company  otherwise  in
violation of,  conflict  with or default  under any of the foregoing  (except in
each case for such conflicts, defaults, terminations, amendments, accelerations,
cancellations  and  violations  as  would  not  have,  individually  or  in  the
aggregate,  a Material Adverse Effect). The business of the Company is not being
conducted in violation of any law,  ordinance or regulation of any  governmental
entity,  except for possible  violations  that either singly or in the aggregate
would not have a Material Adverse Effect.  The Company is not required under any
Federal,  state  or  local  law,  rule or  regulation  to  obtain  any  consent,
authorization or order of, or make any filing or registration with, any court or
governmental  agency in order for it to  execute,  deliver or perform any of its
obligations  under  this  Agreement  or issue  and sell  the Put  Shares  or the
Warrants in  accordance  with the terms  hereof  (other than any SEC,  Principal
Market  or  state  securities  filings  that may be  required  to be made by the
Company subsequent to the initial Closing,  any registration  statement that may
be filed pursuant  hereto,  and any shareholder  approval  required by the rules
applicable  to companies  whose common  stock trades on the  Principal  Market);
provided that,  for purposes of the  representation  made in this sentence,  the
Company  is  assuming   and   relying   upon  the   accuracy  of  the   relevant
representations and agreements of the Investor herein.

Section 4.8  No Material  Adverse  Change.  Since  March 31,  2000,  no Material
Adverse  Effect has occurred or exists with  respect to the  Company,  except as
disclosed in the SEC Documents.

Section 4.9  No Undisclosed  Events or  Circumstances.  Since March 31, 2000, no
event or circumstance  has occurred or exists with respect to the Company or its
businesses,  properties,  prospects,  operations or financial  condition,  that,
under  applicable  law,  rule  or  regulation,  requires  public  disclosure  or
announcement  prior to the date  hereof by the Company but which has not been so
publicly announced or disclosed in the SEC Documents.

Section 4.10 Litigation  and Other  Proceedings.  Except as disclosed in the SEC
Documents,  there are no lawsuits or proceedings pending or, to the knowledge of
the  Company,  threatened,  against the Company or any  subsidiary,  nor has the
Company received any written or oral notice of any such action, suit, proceeding
or investigation,  which could reasonably be expected to have a Material Adverse
Effect.  Except as set forth in the SEC  Documents,  no judgment,  order,  writ,
injunction  or decree or award has been  issued by or, to the  knowledge  of the
Company,  requested of any court,  arbitrator or governmental agency which could
result in a Material Adverse Effect.

Section  4.11  No Misleading  or Untrue  Communication.  The Company and, to the
knowledge  of the Company,  any person  representing  the Company,  or any other
person  selling or offering to sell the Put Shares or the Warrants in connection
with the transaction contemplated by this Agreement, have not made, at any time,
any oral  communication  in connection  with the offer or sale of the same which
contained  any  untrue  statement  of a  material  fact or  omitted to state any
material  fact  necessary in order to make the  statements,  in the light of the
circumstances under which they were made, not misleading.

Section 4.12 Material Non-Public  Information.  The Company has not disclosed to
the Investor any material non-public information that (i) if disclosed publicly,
would  reasonably  be  expected  to have a  material  effect on the price of the
Common Stock or (ii)  according to applicable  law, rule or  regulation,  should
have been  disclosed  publicly by the Company prior to the date hereof but which
has not been so disclosed.

Section 4.13 Insurance.  The Company and each subsidiary  maintains property and
casualty,  general  liability,  workers'  compensation,   environmental  hazard,
personal injury and other similar types of insurance with financially  sound and
reputable insurers that is adequate,  consistent with industry standards and the
Company's  historical  claims  experience.  The Company has not received  notice
from,  and has no knowledge  of any threat by, any insurer  (that has issued any
insurance  policy to the  Company)  that such insurer  intends to deny  coverage
under or cancel,  discontinue  or not renew any  insurance  policy  presently in
force.

Section 4.14 Tax Matters.  The  Company  and each  subsidiary  has filed all Tax
Returns which it is required to file under applicable laws; all such Tax Returns
are true and accurate and has been  prepared in compliance  with all  applicable
laws;  the  Company  has paid all Taxes  due and  owing by it or any  subsidiary
(whether  or not such Taxes are  required  to be shown on a Tax Return) and have
withheld and paid over to the appropriate  taxing authorities all Taxes which it
is required to withhold from amounts paid or owing to any employee, stockholder,
creditor or other third  parties;  and since  December  31,  1998,  the charges,
accruals  and  reserves  for Taxes with  respect to the Company  (including  any
provisions for deferred income taxes)  reflected on the books of the Company are
adequate  to cover any Tax  liabilities  of the  Company if its current tax year
were treated as ending on the date hereof.

                    No claim  has  been  made  by  a  taxing   authority  in   a
jurisdiction where the Company does not file tax returns that the Company or any
subsidiary is or may be subject to taxation by that  jurisdiction.  There are no
foreign,  federal,  state or local tax  audits  or  administrative  or  judicial
proceedings  pending  or being  conducted  with  respect  to the  Company or any
subsidiary;  no  information  related to Tax matters has been  requested  by any
foreign,  federal,  state or local taxing  authority;  and,  except as disclosed
above,  no written notice  indicating an intent to open an audit or other review
has been received by the Company or any  subsidiary  from any foreign,  federal,
state or local taxing authority.  There are no material unresolved  questions or
claims concerning the Company's Tax liability.  The Company (A) has not executed
or entered into a closing agreement pursuant to ss. 7121 of the Internal Revenue
Code or any  predecessor  provision  thereof or any similar  provision of state,
local or  foreign  law;  or (B) has not  agreed  to or is  required  to make any
adjustments  pursuant to ss. 481 (a) of the Internal Revenue Code or any similar
provision  of state,  local or foreign  law by reason of a change in  accounting
method  initiated by the Company or any of its subsidiaries or has any knowledge
that the IRS has proposed any such adjustment or change in accounting method, or
has any application pending with any taxing authority requesting  permission for
any changes in  accounting  methods that relate to the business or operations of
the  Company.  The Company has not been a United  States real  property  holding
corporation  within the meaning of ss.  897(c)(2) of the  Internal  Revenue Code
during the applicable period specified in ss.  897(c)(1)(A)(ii)  of the Internal
Revenue Code.

                    The Company has not made an election  underss. 341(f) of the
Internal Revenue Code. The Company is not liable for the Taxes of another person
that is not a subsidiary of the Company under (A) Treas.  Reg. ss.  1.1502-6 (or
comparable  provisions of state,  local or foreign law),  (B) as a transferee or
successor,  (C) by contract or indemnity or (D) otherwise.  The Company is not a
party to any tax sharing  agreement.  The Company has not made any payments,  is
obligated to make payments or is a party to an agreement  that could obligate it
to make any payments that would not be deductible under ss. 280G of the Internal
Revenue Code.

                  For purposes of this Section 4.14:

                  "IRS" means the United States Internal Revenue Service.

                           Tax" or "Taxes" means federal,  state, county, local,
                  foreign,  or  other  income,   gross  receipts,   ad  valorem,
                  franchise,  profits,  sales  or use,  transfer,  registration,
                  excise,  utility,  environmental,   communications,   real  or
                  personal property,  capital stock,  license,  payroll, wage or
                  other  withholding,  employment,  social security,  severance,
                  stamp,  occupation,  alternative or add-on minimum,  estimated
                  and other  taxes of any kind  whatsoever  (including,  without
                  limitation,  deficiencies,  penalties,  additions  to tax, and
                  interest attributable thereto) whether disputed or not.

                           "Tax Return" means any return,  information report or
                  filing with respect to Taxes, including any schedules attached
                  thereto and including any amendment thereof.

Section 4.15 Property.  Neither the Company nor any of its subsidiaries owns any
real property.  Each of the Company and its subsidiaries has good and marketable
title to all  personal  property  owned  by it,  free  and  clear of all  liens,
encumbrances  and defects except such as do not  materially  affect the value of
such property and do not materially  interfere with the use made and proposed to
be made of such property by the Company; and to the Company's knowledge any real
property and buildings  held under lease by the Company as tenant are held by it
under valid,  subsisting and enforceable  leases with such exceptions as are not
material and do not interfere  with the use made and intended to be made of such
property and buildings by the Company.

Section 4.16 Licensing and Permits. The Company holds all necessary licenses and
permits for the conduct of its business. All of such licenses and permits are in
good  standing  and  the  Company  is  not  in  material  default  of any of the
conditions thereof.

Section 4.17 Intellectual  Property.  Each  of the Company and its  subsidiaries
owns or possesses  adequate and  enforceable  rights to use all patents,  patent
applications,  trademarks,  trademark applications,  trade names, service marks,
copyrights, copyright applications,  licenses, know-how (including trade secrets
and  other   unpatented   and/or   unpatentable   proprietary  or   confidential
information,  systems or procedures)  and other similar  rights and  proprietary
knowledge  (collectively,  "Intangibles")  necessary  for  the  conduct  of  its
business as now being conducted. To the Company's knowledge, except as disclosed
in the  SEC  Documents  neither  the  Company  nor  any of its  subsidiaries  is
infringing  upon or in conflict  with any right of any other person with respect
to any Intangibles.  Except as disclosed in the SEC Documents, no adverse claims
have been asserted by any person to the ownership or use of any  Intangibles and
the Company has no knowledge of any basis for such claim.

Section 4.18 Internal Controls and Procedures.  The Company  maintains books and
records and internal accounting controls which provide reasonable assurance that
(i) all  transactions  to which the Company or any  subsidiary  is a party or by
which its  properties  are bound are executed with  management's  authorization;
(ii) the recorded  accounting of the Company's  consolidated  assets is compared
with  existing  assets at  regular  intervals;  (iii)  access  to the  Company's
consolidated   assets  is  permitted  only  in  accordance   with   management's
authorization;  and (iv) all transactions to which the Company or any subsidiary
is a party or by which its  properties  are bound are  recorded as  necessary to
permit preparation of the financial statements of the Company in accordance with
U.S. generally accepted accounting principles.

Section 4.19 Payments and  Contributions.  Neither the Company,  any subsidiary,
nor any of its directors, officers or, to its knowledge, other employees has (i)
used  any  Company  funds  for any  unlawful  contribution,  endorsement,  gift,
entertainment  or other unlawful expense  relating to political  activity;  (ii)
made any direct or indirect  unlawful payment of Company funds to any foreign or
domestic government  official or employee;  (iii) violated or is in violation of
any provision of the Foreign Corrupt Practices Act of 1977, as amended;  or (iv)
made any bribe,  rebate,  payoff,  influence payment,  kickback or other similar
payment to any person with respect to Company matters.

Section 4.20 No  Misrepresentation.  The  representations  and warranties of the
Company contained in this Agreement,  any schedule,  annex or exhibit hereto and
any  agreement,  instrument  or  certificate  furnished  by the  Company  to the
Investor  pursuant to this Agreement,  do not contain any untrue  statement of a
material fact or omit to state a material fact required to be stated  therein or
necessary to make the statements  therein,  in light of the circumstances  under
which they were made, not misleading.

ARTICLE V

                            Covenants of the Investor

         Investor covenants with the Company that:

Section 5.1  Compliance with Law. The Investor's trading activities with respect
to  shares  of the  Company's  Common  Stock  will  be in  compliance  with  all
applicable  state and federal  securities  laws, rules and regulations and rules
and regulations of the Principal  Market on which the Company's  Common Stock is
listed.  Without  limiting the generality of the foregoing,  the Investor agrees
that it  will,  whenever  required  by  federal  securities  laws,  deliver  the
prospectus included in the Registration Statement to any purchaser of Put Shares
from the Investor.

ARTICLE VI

                            Covenants of the Company

Section 6.1  Registration  Rights. The Company shall  cause  the    Registration
Rights Agreement to remain in full force and effect and the Company shall comply
in all material respects with the terms thereof.

Section 6.2  Listing of Common Stock. The Company  hereby agrees to maintain the
listing of the Common Stock on a Principal  Market,  and as soon as  practicable
(but in any event prior to the  commencement  of the Commitment  Period) to list
the Put Shares and the  Warrant  Shares.  The  Company  further  agrees,  if the
Company applies to have the Common Stock traded on any other  Principal  Market,
it will include in such  application  the Put Shares and the Warrant  Shares and
will take such other  action as is  necessary or desirable in the opinion of the
investor to cause the Common Stock to be listed on such other  Principal  Market
as  promptly as  possible.  The  Company  will take all action to  continue  the
listing  and trading of its Common  Stock on the  Principal  Market  (including,
without limitation,  maintaining sufficient net tangible assets) and will comply
in all respects with the Company's reporting, filing and other obligations under
the bylaws or rules of the  Principal  Market and shall  provide  Investor  with
copies of any correspondence to or from such Principal Market which questions or
threatens delisting of the Common Stock, within one Trading Day of the Company's
receipt thereof.

Section 6.3  Exchange Act  Registration. The Company will cause its Common Stock
to continue to be  registered  under Section 12(g) or 12(b) of the Exchange Act,
will use its best  efforts  to comply in all  respects  with its  reporting  and
filing  obligations under the Exchange Act, and will not take any action or file
any document  (whether or not permitted by Exchange Act or the rules thereunder)
to  terminate  or suspend  such  registration  or to  terminate  or suspend  its
reporting and filing obligations under said Act.

Section 6.4  Legends.  The certificates  evidencing  the Common Stock to be sold
to the Investor shall be free of restrictive legends.

Section 6.5  Corporate  Existence.  The Company  will take  all steps  necessary
to preserve  and continue the corporate existence of the Company.

Section 6.6  Additional SEC Documents. During the Commitment Period, the Company
will deliver to the Investor, as and when the originals thereof are submitted to
the SEC for filing, copies of all SEC Documents so furnished or submitted to the
SEC, or else notify the Investor that such  documents are available on the EDGAR
system.

Section 6.7  Notice  of  Certain  Events  Affecting  Registration; Suspension of
Right to Make a Put. The Company will  immediately  notify the Investor upon the
occurrence of any of the following events in respect of a registration statement
or related prospectus in respect of an offering of Registrable  Securities;  (i)
receipt of any  request  for  additional  information  from the SEC or any other
federal or state  governmental  authority  during the period of effectiveness of
the Registration Statement the response to which would require any amendments or
supplements  to the  registration  statement  or  related  prospectus;  (ii) the
issuance by the SEC or any other federal or state governmental  authority of any
stop order suspending the  effectiveness  of the  Registration  Statement or the
initiation  of  any  proceedings   for  that  purpose;   (iii)  receipt  of  any
notification  with respect to the suspension of the  qualification  or exemption
from  qualification  of  any of  the  Registrable  Securities  for  sale  in any
jurisdiction  or the  initiation  or  threatening  of any  proceeding  for  such
purpose;  (iv) the happening of any event that makes any  statement  made in the
Registration  Statement or related  prospectus or any document  incorporated  or
deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration  Statement,  related
prospectus or documents so that, in the case of the Registration  Statement,  it
will not contain any untrue  statement  of a material  fact or omit to state any
material fact required to be stated  therein or necessary to make the statements
therein not misleading,  and that in the case of the related prospectus, it will
not  contain  any  untrue  statement  of a  material  fact or omit to state  any
material fact required to be stated  therein or necessary to make the statements
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment to the  Registration  Statement would be appropriate;  and the Company
will promptly make available to the Investor any such supplement or amendment to
the related  prospectus.  The Company  shall not deliver to the Investor any Put
Notice during the continuation of any of the foregoing events.

Section 6.8  Expectations Regarding Put Notices.  Within ten (10) days after the
commencement of each calendar quarter  occurring  subsequent to the commencement
of the Commitment Period, the Company must notify the Investor,  in writing,  as
to its  reasonable  expectations  as to the  dollar  amount it  intends to raise
during such calendar quarter, if any, through the issuance of Put Notices.  Such
notification  shall  constitute only the Company's good faith estimate and shall
in no way obligate the Company to raise such amount, or any amount, or otherwise
limit its ability to deliver Put  Notices.  The failure by the Company to comply
with this  provision  can be cured by the Company's  notifying the Investor,  in
writing,  at any time as to its  reasonable  expectations  with  respect  to the
current calendar quarter.

Section 6.9  Consolidation; Merger. The Company shall not, at any time after the
date hereof,  effect any merger or consolidation of the Company with or into, or
a transfer of all or substantially  all of the assets of the Company to, another
entity (a  "Consolidation  Event")  unless the resulting  successor or acquiring
entity (if not the Company) assumes by written instrument or by operation of law
the obligation to deliver to the Investor such shares of stock and/or securities
as the Investor is entitled to receive pursuant to this Agreement.

Section 6.10  Non-Usage Fee.  Unless  the Company shall issue Put Notices in the
minimum amount of $200,000  during each twelve month of the  Commitment  Period,
the Company shall pay the Investor at the end of each such twelve-month period a
non-usage fee equal to Fifty Thousand Dollars  ($50,000) minus ten percent (10%)
of the dollar amount of Puts actually issued during such period.

Section 6.11 Limitation on Future Financing. The Company agrees that it will not
enter into any sale of its securities for cash at a discount to its then-current
closing bid price during the Commitment Period except for any sales (i) pursuant
to any presently  existing stock  incentive plan which plan has been approved by
the  Company's  stockholders,  (ii)  pursuant  to any  compensatory  plan  for a
full-time  employee,   director  or  key  consultant,   (iii)  pursuant  to  any
underwritten  public  offering  with an  established  investment  bank,  (iv) in
connection  with a strategic  partnership  or other  business  transaction,  the
principal  purpose of which is not simply to raise  money,  (v)  pursuant to any
option,  warrant or agreement  outstanding on the date of this  Agreement,  (vi)
pursuant  to any  financing  of up to  $5,000,000  arranged  through a reputable
placement agent (not including an equity line type financing), or (vii) with the
prior  approval  of the  Investor,  which  will  not be  unreasonably  withheld.
Further,  the  Investor  shall  have a right  of  first  refusal,  to  elect  to
participate, in such subsequent transaction in the case of (iii) and (vi), (vii)
above. Such right of first refusal must be exercised in writing within seven (7)
Trading Days of the  Investor's  receipt of notice of the proposed terms of such
financing.

ARTICLE VII

                         Conditions to Delivery of Puts
                            and Conditions to Closing

Section 7.1  Conditions  Precedent to the Obligation of the Company to Issue and
Sell Common Stock. The obligation hereunder of the Company to issue and sell the
Put  Shares  to  the  Investor  incident  to  each  Closing  is  subject  to the
satisfaction,  at or before each such  Closing,  of each of the  conditions  set
forth below.

             a)     Accuracy  of  the Investor's  Representation and Warranties.
The  representations and warranties of the Investor shall be true and correct in
all  material  respects as of the date of this  Agreement  and as of the date of
each such Closing as though made at each such time.

             (b)    Performance  by  the  Investor.  The  Investor  shall   have
performed,  satisfied and complied in all material  respects with all covenants,
agreements and conditions required by this Agreement to be performed,  satisfied
or complied with by the Investor at or prior to such Closing, and Investor shall
provide  a  certificate  to the  Company,  substantially  in the  form  of  that
delivered by the Investor at the Closing.

Section 7.2  Conditions  Precedent  to the Right of the Company to Deliver a Put
Notice and the  Obligation of the Investor to Purchase Put Shares.  The right of
the Company to deliver a Put Notice and the obligation of Investor  hereunder to
acquire  and pay for the Put  Shares  incident  to a Closing  is  subject to the
satisfaction,  on both (i) the date of  delivery of such Put Notice and (ii) the
applicable Closing Date (each a "Condition  Satisfaction  Date"), of each of the
following conditions:

             (a)    Closing  Certificate.  All  representations  and  warranties
of the Company  contained herein shall remain true and correct as of the Closing
Date as though made as of such date and the Company  shall have  delivered  into
escrow an Officer's Certificate signed by its Chief Executive Officer certifying
that all of the Company's  representations and warranties herein remain true and
correct as of the Closing Date and that the Company has  performed all covenants
and satisfied  all  conditions to be performed or satisfied by the Company prior
to such Closing;

             (b)    Blue Sky.  The  Company  shall  have  obtained  all  permits
and  qualifications  required  by any state for the offer and sale of the Common
Stock to the  Investor  and by the  Investor  as set  forth in the  Registration
Rights Agreement or shall have the availability of exemptions therefrom;

             (c)    Delivery of Put Shares. Delivery  into  escrow  or to DTC of
the Put Shares;

             (d)    Opinion of Counsel.  Receipt by the  Investor  of an opinion
of counsel to the Company, in the form of Exhibit D hereto; and

             (e)    Transfer Agent. Delivery to the Company's  transfer agent of
instructions   to  such  transfer   agent  in  form  and  substance   reasonably
satisfactory to the Investor.

             (f)    Registration  of  the  Common   Stock   with  the  SEC.  The
Registration  Statement shall have previously  become effective and shall remain
effective and available for making  resales of the Put Shares and Warrant Shares
by the Investor on each Condition  Satisfaction Date and (i) neither the Company
nor the Investor  shall have received  notice that the SEC has issued or intends
to issue a stop order with respect to the Registration Statement or that the SEC
otherwise  has  suspended or withdrawn  the  effectiveness  of the  Registration
Statement, either temporarily or permanently, or intends or has threatened to do
so (unless the SEC's concerns have been addressed and the Investor is reasonably
satisfied that the SEC no longer is considering or intends to take such action),
and (ii) no other  suspension of the use or withdrawal of the  effectiveness  of
the Registration Statement or related prospectus shall exist.

             (g)    Authority. The Company will satisfy all laws and regulations
pertaining to the sale and issuance of the Put Shares.

             (h)   Performance by the Company. The Company shall have performed,
satisfied and complied in all material  respects with all covenants,  agreements
and conditions required by this Agreement, the Registration Rights Agreement and
the Escrow Agreement to be performed,  satisfied or complied with by the Company
at or prior to each Condition Satisfaction Date.

             (i)   No Injunction. No statute, rule, regulation, executive order,
decree,  ruling or injunction shall have been enacted,  entered,  promulgated or
endorsed by any court or governmental  authority of competent  jurisdiction that
prohibits or directly and adversely affects any of the transactions contemplated
by this Agreement, and no proceeding shall have been commenced that may have the
effect  of   prohibiting  or  adversely   affecting  any  of  the   transactions
contemplated by this Agreement.

             (j)    Adverse  Changes. Since the date of filing of the  Company's
most recent SEC Document,  no event that had or is  reasonably  likely to have a
Material Adverse Effect has occurred.

             (k)    No  Suspension  of Trading In or Delisting of Common  Stock.
The trading of the Common Stock (including,  without limitation, the Put Shares)
is not  suspended  by the SEC or the  Principal  Market,  and the  Common  Stock
(including,  without  limitation,  the Put Shares)  shall have been approved for
listing or  quotation  on and shall not have been  delisted  from the  Principal
Market.  The issuance of shares of Common  Stock with respect to the  applicable
Closing, if any, shall not violate the shareholder approval  requirements of the
Principal Market.  The Company shall not have received any notice threatening to
delist the Common Stock from the Principal Market.

             (l)    No  Knowledge.   The  Company has no  knowledge of any event
more likely than not to have the effect of causing such  Registration  Statement
to be suspended or otherwise  ineffective  (which event is reasonably  likely to
occur  within the thirty (30) Trading  Days  following  the Trading Day on which
such Notice is deemed delivered).

             (m)    Trading  Cushion. The  Trading Cushion  shall  have  elapsed
since  the next preceding Put Date.

             (n)    Future Financing. The Company   shall  have  not   completed
any financing prohibited by Section 6.11 unless, prior to the Company delivering
a Put Notice after any such financing,  the Company pays the Investor the sum of
$100,000 as liquidated damages.

             (n)    Other.  On  each Condition  Satisfaction  Date, the Investor
shall have received and been reasonably  satisfied with such other  certificates
and documents as shall have been  reasonably  requested by the Investor in order
for the Investor to confirm the Company's  satisfaction  of the  conditions  set
forth in this Section 7.2.

ARTICLE VIII

         Due Diligence Review; Non-Disclosure of Non-Public Information.

Section  8.1 Due  Diligence  Review.  The  Company  shall   make  available  for
inspection and review by the Investor,  advisors to and  representatives  of the
Investor  (who  may or may  not be  affiliated  with  the  Investor  and who are
reasonably  acceptable to the Company),  any  underwriter  participating  in any
disposition of the Registrable  Securities on behalf of the Investor pursuant to
the  Registration  Statement,  any such  registration  statement or amendment or
supplement  thereto or any blue sky, NASD or other filing, all SEC Documents and
other filings with the SEC, and all other publicly available corporate documents
and properties of the Company as may be reasonably  necessary for the purpose of
such review, and cause the Company's officers, directors and employees to supply
all such publicly available information  reasonably requested by the Investor or
any  such  representative,  advisor  or  underwriter  in  connection  with  such
Registration  Statement  (including,  without  limitation,  in  response  to all
questions  and other  inquiries  reasonably  made or  submitted by any of them),
prior to and  from  time to time  after  the  filing  and  effectiveness  of the
Registration  Statement  for the sole  purpose of enabling the Investor and such
representatives,  advisors and underwriters and their respective accountants and
attorneys  to conduct  initial  and ongoing due  diligence  with  respect to the
Company and the accuracy of the Registration Statement.

Section 8.2  Non-Disclosure of Non-Public Information.

             (a)    The  Company   shall  not  disclose  non-public  information
to the Investor,  advisors to or representatives of the Investor unless prior to
disclosure of such information the Company  identifies such information as being
non-public   information   and  provides  the   Investor,   such   advisors  and
representatives  with the  opportunity  to  accept  or  refuse  to  accept  such
non-public information for review. The Company may, as a condition to disclosing
any  non-public  information  hereunder,  require the  Investor's  advisors  and
representatives  to enter into a  confidentiality  agreement in form  reasonably
satisfactory to the Company and the Investor.

             (b) The Company represents that it does not disseminate  non-public
information  to any  investors  who  purchase  stock in the  Company in a public
offering, to money managers or to securities analysts,  provided,  however, that
notwithstanding   anything  herein  to  the  contrary,   the  Company  will,  as
hereinabove provided, immediately notify the advisors and representatives of the
Investor  and,  if any,  underwriters,  of any  event  or the  existence  of any
circumstance   (without  any  obligation  to  disclose  the  specific  event  or
circumstance)  of which it becomes aware,  constituting  non-public  information
(whether or not requested of the Company  specifically  or generally  during the
course of due diligence by such persons or entities), which, if not disclosed in
the  prospectus  included  in  the  Registration   Statement  would  cause  such
prospectus  to  include  a  material  misstatement  or to omit a  material  fact
required to be stated therein in order to make the statements,  therein in light
of the circumstances in which they were made, not misleading.  Nothing contained
in this  Section 8.2 shall be  construed  to mean that such  persons or entities
other than the Investor  (without the written  consent of the Investor  prior to
disclosure of such  information)  may not obtain  non-public  information in the
course  of  conducting  due  diligence  in  accordance  with  the  terms of this
Agreement  and nothing  herein shall  prevent any such persons or entities  from
notifying  the Company of their opinion that based on such due diligence by such
persons  or  entities,  that  the  Registration  Statement  contains  an  untrue
statement of a material  fact or omits a material  fact required to be stated in
the  Registration  Statement  or  necessary  to make  the  statements  contained
therein, in light of the circumstances in which they were made, not misleading.

ARTICLE IX

                           Transfer Agent Instructions

Section 9.1  Transfer Agent  Instructions.  Upon each Closing,  the Company will
issue to the  transfer  agent for its  Common  Stock (and to any  substitute  or
replacement  transfer agent for its Common Stock upon the Company's  appointment
of any such substitute or replacement  transfer  agent)  instructions to deliver
the Put Shares without restrictive legends to the Escrow Agent.

Section 9.2  No Legend or Stock Transfer Restrictions. No legend shall be placed
on the share  certificates  representing  the Put Shares and no  instructions or
"stop  transfer  orders," so called,  "stock  transfer  restrictions,"  or other
restrictions  have been or shall be given to the Company's  transfer  agent with
respect thereto.

Section 9.3  Investor's Compliance.  Nothing in this Article shall affect in any
way the Investor's obligations under any agreement to comply with all applicable
securities laws upon resale of the Put Shares.

ARTICLE X

                                  Choice of Law

Section 10.1 Governing Law/Arbitration.  This Agreement shall be governed by and
construed in  accordance  with the laws of the State of New York  applicable  to
contracts  made in New York by persons  domiciled  in New York City and  without
regard to its  principles of conflicts of laws. Any dispute under this Agreement
or any Exhibit  attached  hereto  shall be submitted  to  arbitration  under the
American  Arbitration  Association  (the "AAA") in New York City,  New York, and
shall be finally  and  conclusively  determined  by the  decision  of a board of
arbitration  consisting  of three (3)  members  (hereinafter  referred to as the
"Board of  Arbitration")  selected as according to the rules  governing the AAA.
The Board of  Arbitration  shall meet on  consecutive  business days in New York
City, New York,  and shall reach and render a decision in writing  (concurred in
by a majority of the members of the Board of  Arbitration)  with  respect to the
amount,  if any, which the losing party is required to pay to the other party in
respect of a claim filed. In connection with rendering its decisions,  the Board
of Arbitration  shall adopt and follow the laws of the State of New York. To the
extent  practical,  decisions of the Board of  Arbitration  shall be rendered no
more than thirty (30) calendar days following  commencement of proceedings  with
respect thereto. The Board of Arbitration shall cause its written decision to be
delivered to all parties involved in the dispute. The Board of Arbitration shall
be  authorized  and is  directed to enter a default  judgment  against any party
refusing to participate in the arbitration  proceeding within thirty days of any
deadline for such  participation.  Any decision made by the Board of Arbitration
(either  prior to or after the  expiration  of such  thirty  (30)  calendar  day
period)  shall be final,  binding and  conclusive on the parties to the dispute,
and entitled to be enforced to the fullest  extent  permitted by law and entered
in any court of competent  jurisdiction.  The prevailing  party shall be awarded
its costs,  including  attorneys' fees, from the non-prevailing party as part of
the arbitration  award. Any party shall have the right to seek injunctive relief
from any  court of  competent  jurisdiction  in any case  where  such  relief is
available.  The prevailing party in such injunctive  action shall be awarded its
costs, including attorney's fees, from the non-prevailing party.

ARTICLE XI

                                   Assignment

Section 11.1 Assignment.  Neither  this Agreement nor any rights of the Investor
or the Company  hereunder  may be assigned by either  party to any other  person
except  by  operation  of law.  Notwithstanding  the  foregoing,  upon the prior
written consent of the Company, which consent shall not unreasonably be withheld
or delayed in the case of an  assignment  to an affiliate of the  Investor,  the
Investor's  interest in this  Agreement may be assigned at any time, in whole or
in part, to any other person or entity (including any affiliate of the Investor)
who agrees to make the representations  and warranties  contained in Article III
and who agrees to be bound hereby.

ARTICLE XII

                                     Notices

Section 12.1 Notices. All notices, demands, requests,  consents,  approvals, and
other  communications  required or permitted  hereunder shall be in writing and,
unless  otherwise  specified  herein,  shall  be  (i)  personally  served,  (ii)
deposited  in the mail,  registered  or  certified,  return  receipt  requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other  address as such party shall have  specified
most recently by written notice. Any notice or other  communication  required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,   with  accurate  confirmation   generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received),  or the first  business day following  such delivery (if delivered
other than on a business day during normal  business  hours where such notice is
to be received) or (b) on the second  business day following the date of mailing
by reputable courier service, fully prepaid,  addressed to such address, or upon
actual receipt of such mailing,  whichever shall first occur.  The addresses for
such communications shall be:

If to the Company:                       615 S. Federal Highway, Suite 101
                                         Boca Raton, FL  33432
Fax:
                                         Tel:  (561) 447-7370
                                         Attn:  Daniel Pepe, President & COB

with a copy to:                          Atlas, Pearlman, Trop & Borkson, P.A.
(shall not constitute notice)            200 East Las Olas Boulevard, Suite 1900
                                         Fort Lauderdale, FL 33302
                                         Attention: James Schneider
                                         Telephone: (954) 763-1200
                                         Facsimile: (954) 766-7800

if to the Investor:                      Investwell Investments Limted
                                         c/o Dr. Dr. Batliner & Partner
                                         Aeulestrasse 74
                                         FL-9490 Vaduz, Liechtenstein
                                         Fax: 011-075-236-0405

with a copy to:                          Epstein Becker & Green, P.C.
(shall not constitute notice)            250 Park Avenue
                                         New York, New York 10177
                                         Attn:  Robert F. Charron, Esq.
                                         Telephone:  (212) 351-3771
                                         Facsimile:  (212) 661-0989

Either party hereto may from time to time change its address or facsimile number
for  notices  under this  Section  12.1 by giving at least ten (10) days'  prior
written  notice of such changed  address or facsimile  number to the other party
hereto.

ARTICLE XIII

                                  Miscellaneous

Section 13.1 Counterparts/ Facsimile/ Amendments. This Agreement may be executed
in multiple counterparts,  each of which may be executed by less than all of the
parties  and  shall  be  deemed  to be an  original  instrument  which  shall be
enforceable  against the parties actually executing such counterparts and all of
which together shall constitute one and the same instrument. Except as otherwise
stated herein, in lieu of the original  documents,  a facsimile  transmission or
copy of the original  documents  shall be as effective  and  enforceable  as the
original.  This  Agreement  may be  amended  only by a writing  executed  by all
parties.

Section 13.2 Entire  Agreement.  This  Agreement,  the  Exhibits  hereto,  which
include,  but are not limited to the Escrow Agreement,  the Registration  Rights
Agreement and the Warrants,  set forth the entire agreement and understanding of
the parties  relating to the subject  matter hereof and supersedes all prior and
contemporaneous agreements, negotiations and understandings between the parties,
both oral and  written  relating  to the subject  matter  hereof.  The terms and
conditions  of all Exhibits to this  Agreement are  incorporated  herein by this
reference  and shall  constitute  part of this  Agreement  as is fully set forth
herein.

Section 13.3 Survival; Severability. The representations,  warranties, covenants
and  agreements of the parties hereto shall survive each Closing  hereunder.  In
the event that any provision of this Agreement becomes or is declared by a court
of competent  jurisdiction to be illegal,  unenforceable or void, this Agreement
shall  continue in full force and effect without said  provision;  provided that
such  severability  shall be ineffective  if it materially  changes the economic
benefit of this Agreement to any party.

Section 13.4 Title   and   Subtitles.  The  titles  and  subtitles  used in this
Agreement  are  used  for  convenience  only  and  are not to be  considered  in
construing or interpreting this Agreement.

Section 13.5 Reporting  Entity for the Common Stock. The reporting entity relied
upon for the  determination of the trading price or trading volume of the Common
Stock on any given  Trading  Day for the  purposes  of this  Agreement  shall be
Bloomberg,  L.P. or any successor  thereto.  The written  mutual  consent of the
Investor and the Company shall be required to employ any other reporting entity.

Section 13.6 Replacement  of  Certificates.   Upon   (i)   receipt  of  evidence
reasonably  satisfactory  to the  Company  of the loss,  theft,  destruction  or
mutilation of a certificate  representing the Put Shares and (ii) in the case of
any such loss,  theft or  destruction of such  certificate,  upon delivery of an
indemnity  agreement or security  reasonably  satisfactory in form and amount to
the Company  (which  shall not exceed that  required by the  Company's  transfer
agent in the ordinary  course) or (iii) in the case of any such  mutilation,  on
surrender and cancellation of such certificate,  the Company at its expense will
execute and deliver, in lieu thereof, a new certificate of like tenor.

Section 13.7 Fees and Expenses.  Each of the Company and the Investors agrees to
pay its own expenses  incident to the performance of its obligations  hereunder,
except  that the  Company  shall pay the fees,  expenses  and  disbursements  of
Investors' counsel in the amount of $25,000 plus $2,500 per Closing of a Put.

Section 13.8 Brokerage. Each of the parties hereto represents that it has had no
dealings in connection with this  transaction with any finder or broker who will
demand  payment of any fee or  commission  from the other party  except  Jesup &
Lamont  Securities  Corporation  whose  fee  shall be paid by the  Company.  The
Company on the one hand, and the Investor, on the other hand, agree to indemnify
the other against and hold the other  harmless from any and all  liabilities  to
any  person  claiming  brokerage  commissions  or  finder's  fees on  account of
services  purported to have been rendered on behalf of the indemnifying party in
connection with this Agreement or the transactions contemplated hereby.

Section 13.9 Publicity.   The   Company  agrees that it will not issue any press
release or other public  announcement of the  transactions  contemplated by this
Agreement  without  the  prior  consent  of the  Investor,  which  shall  not be
unreasonably  withheld  nor delayed by more than two (2)  Trading  Days from its
receipt of such  proposed  release;  provided,  however,  that if the Company is
advised by its outside  counsel  that it is  required  by law or the  applicable
rules  of any  Principal  Market  to issue  any such  press  release  or  public
announcement,  then,  it may do so without  the prior  consent of the  Investor,
although  it  shall  be  required  to  provide  prior  notice  (which  may be by
telephone) to the Investor that it intends to issue such press release or public
announcement. No release shall name the Investor without its express consent.

Section 13.10 Effectiveness of Agreement.  This Agreement shall become effective
only upon  satisfaction  of the conditions  precedent to the Initial Closing set
forth in Article I of the Escrow Agreement.

<PAGE>

         IN WITNESS WHEREOF,  the parties hereto have caused this Private Equity
Line of Credit  Agreement  to be executed  by the  undersigned,  thereunto  duly
authorized, as of this __ day of August, 2000

                                       GEOTEC THERMAL GENERATORS, INC.

                                       By:    __________________________________
                                              Daniel Pepe, President & CEO

                                       Investwell Investments Limted

                                       By:    __________________________________
                                              Hans Gassner, Authorized SignatoryEXHIBIT C

                          REGISTRATION RIGHTS AGREEMENT

THIS REGISTRATION  RIGHTS AGREEMENT,  dated as of this 2nd day of August,  2000,
between Investwell  Investments Limted ("Holder") and Geotec Thermal Generators,
Inc.,  a  corporation  incorporated  under the laws of the State of Florida (the
"Company").

                  WHEREAS,  simultaneously  with the  execution  and delivery of
this Agreement,  pursuant to a Private Equity Line of Credit Agreement dated the
date hereof (the "Purchase  Agreement")  the Holder has committed to purchase up
to 6,000,000  shares of the  Company's  Common  Stock (terms not defined  herein
shall have the meanings ascribed to them in the Purchase Agreement); and

                  WHEREAS,  the  Company  desires  to  grant to the  Holder  the
registration  rights  set forth  herein  with  respect to the Put Shares and the
Blackout  Shares issuable upon exercise of the Company's Put rights from time to
time and the Warrant  Shares  (hereinafter  referred  to as the "Put  Shares" or
"Stock" or "Securities" of the Company).

                  NOW, THEREFORE, the parties hereto mutually agree as follows:

Section  1.  Registrable  Securities.  As  used  herein  the  term  "Registrable
Security" means the Securities  until (i) all Put Shares and Warrant Shares have
been disposed of pursuant to the Registration Statement, (ii) all Put Shares and
Warrant  Shares  have  been  sold  under  circumstances  under  which all of the
applicable conditions of Rule 144 (or any similar provision then in force) under
the Securities Act ("Rule 144") are met, (iii) all Put Shares and Warrant Shares
have been otherwise transferred to persons who may trade such Securities without
restriction  under the  Securities  Act,  and the  Company  has  delivered a new
certificate  or other  evidence  of  ownership  for such Put Shares and  Warrant
Shares not bearing a restrictive  legend or (iv) such time as, in the opinion of
counsel to the  Company,  all Put Shares and Warrant  Shares may be sold without
any time, volume or manner  limitations  pursuant to Rule 144(k) (or any similar
provision  then in  effect)  under the  Securities  Act.  The term  "Registrable
Securities" means any and/or all of the securities  falling within the foregoing
definition   of  a   "Registrable   Security."  In  the  event  of  any  merger,
reorganization,  consolidation,  recapitalization  or other  change in corporate
structure affecting the Common Stock, such adjustment shall be deemed to be made
in the  definition  of  "Registrable  Security"  as is  appropriate  in order to
prevent  any  dilution or  enlargement  of the rights  granted  pursuant to this
Agreement.

Section 2.  Restrictions on Transfer.  The Holder  acknowledges  and understands
that in the  absence of an  effective  Registration  Statement  authorizing  the
resale of the Securities as provided  herein,  the  Securities  are  "restricted
securities"  as  defined  in Rule 144  promulgated  under  the Act.  The  Holder
understands  that no  disposition  or transfer of the  Securities may be made by
Holder in the  absence of (i) an opinion of counsel to the  Holder,  in form and
substance reasonably satisfactory to the Company, that such transfer may be made
without registration under the Securities Act or (ii) such registration.

                  With a view to making  available to the Holder the benefits of
Rule 144 under the Securities Act or any other similar rule or regulation of the
Commission  that may at any time  permit  the Holder to sell  securities  of the
Company to the public without registration ("Rule 144"), the Company agrees to:

(a) comply with the provisions of paragraph (c)(1) of Rule 144; and

(b) file with the Commission in a timely manner all reports and other  documents
required  to be filed by the  Company  pursuant to Section 13 or 15(d) under the
Exchange Act; and, if at any time it is not required to file such reports but in
the past had  been  required  to or did file  such  reports,  it will,  upon the
request of any Holder,  make available other  information as required by, and so
long as  necessary to permit sales of, its  Registrable  Securities  pursuant to
Rule 144.

Section 3.        Registration Rights With Respect to the Securities.

(a) The Company  agrees that it will  prepare and file with the  Securities  and
Exchange  Commission  ("Commission"),  within  sixty  (60)  days  after the date
hereof, a registration statement (on Form S-1, S-3, or other appropriate form of
registration statement) under the Securities Act (the "Registration Statement"),
at the sole expense of the Company  (except as provided in Section 3(c) hereof),
so as to permit a public offering and resale of the Securities  under the Act by
Holder.

The Company  shall use its best efforts to cause the  Registration  Statement to
become effective  within ninety (90) days from the date hereof,  or, if earlier,
within five (5) days of SEC clearance to request  acceleration of effectiveness.
The number of shares  designated in the Registration  Statement to be registered
shall be 6,000,000 and shall include  appropriate  language  regarding  reliance
upon Rule 416 to the extent permitted by the Commission. The Company will notify
Holder of the effectiveness of the Registration Statement within one Trading Day
of such event.

(b) The Company will  maintain  the  Registration  Statement  or  post-effective
amendment  filed under this Section 3 hereof  effective under the Securities Act
until the earlier of (i) the date that none of the  Securities are or may become
issued and outstanding,  (ii) the date that all of the Securities have been sold
pursuant  to the  Registration  Statement,  (iii) the date the  holders  thereof
receive an opinion of counsel to the Company,  which counsel shall be reasonably
acceptable to the Holder,  that the  Securities may be sold under the provisions
of Rule 144  without  limitation  as to volume,  (iv) all  Securities  have been
otherwise  transferred to persons who may trade such shares without  restriction
under the  Securities  Act, and the Company has delivered a new  certificate  or
other  evidence of  ownership  for such  securities  not  bearing a  restrictive
legend,  or (v) all  Securities  may be sold without any time,  volume or manner
limitations  pursuant  to Rule 144(k) or any  similar  provision  then in effect
under the Securities Act in the opinion of counsel to the Company, which counsel
shall be reasonably acceptable to the Holder (the "Effectiveness Period").

(c) All fees, disbursements and out-of-pocket expenses and costs incurred by the
Company  in  connection  with the  preparation  and  filing of the  Registration
Statement under  subparagraph  3(a) and in complying with applicable  securities
and Blue Sky laws  (including,  without  limitation,  all attorneys' fees of the
Company)  shall be borne  by the  Company.  The  Holder  shall  bear the cost of
underwriting  and/or  brokerage  discounts,   fees  and  commissions,   if  any,
applicable to the Securities  being  registered and the fees and expenses of its
counsel.  The Holder and its  counsel  shall have a  reasonable  period,  not to
exceed ten (10) Trading Days, to review the proposed  Registration  Statement or
any  amendment  thereto,  prior to filing with the  Commission,  and the Company
shall provide each Holder with copies of any comment  letters  received from the
Commission with respect thereto within two (2) Trading Days of receipt  thereof.
The Company  shall make  reasonably  available  for  inspection  by Holder,  any
underwriter  participating  in any  disposition  pursuant  to  the  Registration
Statement,  and any attorney,  accountant or other agent retained by such Holder
or any such  underwriter  all relevant  financial and other  records,  pertinent
corporate  documents  and  properties of the Company and its  subsidiaries,  and
cause the Company's officers,  directors and employees to supply all information
reasonably  requested  by  such  Holder  or  any  such  underwriter,   attorney,
accountant or agent in connection with the Registration Statement, in each case,
as is customary for similar due diligence examinations;  provided, however, that
all records,  information  and documents  that are  designated in writing by the
Company, in good faith, as confidential,  proprietary or containing any material
non-public  information  shall be kept  confidential by such Holder and any such
underwriter,   attorney,   accountant  or  agent  (pursuant  to  an  appropriate
confidentiality  agreement in the case of any such Holder or agent), unless such
disclosure is made  pursuant to judicial  process in a court  proceeding  (after
first giving the Company an opportunity  promptly to seek a protective  order or
otherwise  limit the scope of the  information  sought  to be  disclosed)  or is
required by law, or such records,  information or documents  become available to
the  public  generally  or  through  a  third  party  not  in  violation  of  an
accompanying  obligation of  confidentiality;  and provided further that, if the
foregoing  inspection and  information  gathering  would  otherwise  disrupt the
Company's  conduct of its business,  such inspection and  information  gathering
shall,  to the maximum extent  possible,  be coordinated on behalf of the Holder
and the other parties entitled thereto by one firm of counsel designed by and on
behalf of the  majority  in interest  of Holder and other  parties.  The Company
shall  qualify  any of the  securities  for sale in such  states as such  Holder
reasonably  designates and shall furnish  indemnification in the manner provided
in Section 6 hereof.  However,  the Company  shall not be required to qualify in
any state  which will  require an escrow or other  restriction  relating  to the
Company  and/or the sellers,  or which will require the Company to qualify to do
business  in such  state or require  the  Company to file  therein  any  general
consent to service of process. The Company at its expense will supply the Holder
with copies of the  Registration  Statement and the prospectus  included therein
and other related documents in such quantities as may be reasonably requested by
the Holder.

(d) The Company  shall not be  required by this  Section 3 to include a Holder's
Securities in any Registration Statement which is to be filed if, in the opinion
of counsel for both the Holder and the Company  (or,  should they not agree,  in
the opinion of another counsel  experienced in securities law matters acceptable
to counsel  for the Holder  and the  Company)  the  proposed  offering  or other
transfer as to which such  registration  is requested is exempt from  applicable
federal  and  state  securities  laws and  would  result  in all  purchasers  or
transferees  obtaining  securities  which are not  "restricted  securities",  as
defined in Rule 144 under the Securities Act.

(e) No  provision  contained  herein  shall  preclude  the Company  from selling
securities  pursuant to any  Registration  Statement  in which it is required to
include Securities pursuant to this Section 3.

(f) If at any  time  or  from  time  to time  after  the  effective  date of the
Registration  Statement,  the  Company  notifies  the  Holder in  writing of the
existence of a Potential  Material Event (as defined in Section 3(g) below), the
Holder shall not offer or sell any Securities or engage in any other transaction
involving or relating to Securities,  from the time of the giving of notice with
respect to a Potential  Material Event until such Holder receives written notice
from the Company that such Potential Material Event either has been disclosed to
the  public or no longer  constitutes  a  Potential  Material  Event;  provided,
however, that if the Company so suspends the right to such holders of Securities
for more than thirty (30) days in the aggregate  during any twelve month period,
during the periods the  Registration  Statement is required to be in effect such
excess periods shall be a Registration  Default,  and shall entitle the Investor
to receive Blackout Shares as provided in the Purchase Agreement. If a Potential
Material  Event  shall  occur prior to the date the  Registration  Statement  is
filed, then the Company's obligation to file the Registration Statement shall be
delayed  without  penalty for not more than thirty (30) days.  The Company  must
give Holder  notice in writing at least two (2) Trading  Days prior to the first
day of the blackout period, if lawful to do so.

(g) "Potential Material Event" means any of the following: (a) the possession by
the  Company  of  material  information  that is not  ripe for  disclosure  in a
registration  statement,  as  determined  in good  faith by the Chief  Executive
Officer or the Board of  Directors  of the  Company or that  disclosure  of such
information in the  Registration  Statement would be detrimental to the business
and affairs of the Company;  or (b) any material  engagement  or activity by the
Company  which would,  in the good faith  determination  of the Chief  Executive
Officer or the Board of  Directors  of the  Company,  be  adversely  affected by
disclosure in a registration  statement at such time, which  determination shall
be accompanied by a good faith  determination by the Chief Executive  Officer or
the Board of Directors of the Company that the  Registration  Statement would be
materially misleading absent the inclusion of such information.

Section 4. Cooperation  with Company.  Holder will cooperate with the Company in
all respects in connection with this Agreement,  including  timely supplying all
information  reasonably  requested  by the  Company  (which  shall  include  all
information  regarding the Holder and proposed manner of sale of the Registrable
Securities required to be disclosed in the Registration Statement) and executing
and  returning  all  documents  reasonably  requested  in  connection  with  the
registration  and  sale of the  Registrable  Securities  and  entering  into and
performing its obligations under any underwriting  agreement, if the offering is
an  underwritten  offering,  in usual  and  customary  form,  with the  managing
underwriter or underwriters of such underwritten  offering.  The Holder consents
to be named as a statutory underwriter in the Registration Statement.

Section 5. Registration  Procedures.  If and whenever the Company is required by
any of the provisions of this Agreement to effect the registration of any of the
Registrable  Securities  under the Act, the Company  shall  (except as otherwise
provided  in this  Agreement),  as  expeditiously  as  possible,  subject to the
Holder's assistance and cooperation as reasonably required:

(a) (i) prepare and file with the Commission  such amendments and supplements to
the  Registration  Statement and the prospectus used in connection  therewith as
may be necessary to keep such  registration  statement  effective  and to comply
with the provisions of the Act with respect to the sale or other  disposition of
all securities  covered by such  registration  statement  whenever the Holder of
such  Registrable  Securities  shall desire to sell or otherwise  dispose of the
same (including  prospectus  supplements with respect to the sales of securities
from time to time in connection with a registration  statement  pursuant to Rule
415 promulgated under the Act) and (ii) take all lawful action such that each of
(A) the  Registration  Statement  and any  amendment  thereto does not,  when it
becomes  effective,  contain an untrue  statement of a material  fact or omit to
state a material  fact  required to be stated  therein or  necessary to make the
statements  therein,  not misleading and (B) the Prospectus  forming part of the
Registration Statement, and any amendment or supplement thereto, does not at any
time during the  Registration  Period include an untrue  statement of a material
fact or omit to state a material fact required to be stated therein or necessary
to make the statements  therein,  in light of the circumstances under which they
were made, not misleading.

(b) (i) prior to the filing with the  Commission of any  Registration  Statement
(including  any  amendments  thereto)  and the  distribution  or delivery of any
prospectus (including any supplements thereto),  provide draft copies thereof to
the Holders and reflect in such  documents all such comments as the Holders (and
their  counsel)  reasonably  may  propose  and (ii)  furnish to each Holder such
numbers of copies of a  prospectus  including a  preliminary  prospectus  or any
amendment or supplement to any prospectus, as applicable, in conformity with the
requirements of the Act, and such other documents, as such Holder may reasonably
request in order to  facilitate  the  public  sale or other  disposition  of the
securities owned by such Holder;

(c) register and qualify the Registrable  Securities covered by the Registration
Statement under such other securities or blue sky laws of such  jurisdictions as
the Holder shall  reasonably  request  (subject to the  limitations set forth in
Section  3(d)  above),  and do any and all other  acts and  things  which may be
necessary or advisable  to enable each Holder to  consummate  the public sale or
other  disposition in such  jurisdiction of the securities owned by such Holder,
except that the Company shall not for any such purpose be required to qualify to
do business as a foreign  corporation in any  jurisdiction  wherein it is not so
qualified or to file therein any general consent to service of process;

(d) list  such  Registrable  Securities  on the  Primary  Market,  and any other
exchange on which the Common Stock of the Company is then listed, if the listing
of such  Registrable  Securities  is then  permitted  under  the  rules  of such
exchange;

(e) notify each Holder at any time when a prospectus relating thereto covered by
the  Registration  Statement is required to be  delivered  under the Act, of the
happening  of any  event of  which it has  knowledge  as a result  of which  the
prospectus included in the Registration  Statement,  as then in effect, includes
an  untrue  statement  of a  material  fact or omits to  state a  material  fact
required to be stated  therein or necessary to make the  statements  therein not
misleading  in the light of the  circumstances  then  existing,  and the Company
shall  prepare and file a curative  amendment  under  Section 5(a) as quickly as
commercially possible;

(f) as promptly as practicable after becoming aware of such event, notify Holder
(or, in the event of an underwritten offering, the managing underwriters) of the
issuance by the  Commission  or any state  authority  of any stop order or other
suspension of the  effectiveness of the  Registration  Statement at the earliest
possible time and take all lawful action to effect the withdrawal,  recession or
removal of such stop order or other suspension;

(g) cooperate with the Holder to facilitate the timely  preparation and delivery
of  certificates  for the Registrable  Securities to be offered  pursuant to the
Registration   Statement  and  enable  such  certificates  for  the  Registrable
Securities to be in such  denominations  or amounts,  as the case may be, as the
Holder  reasonably  may request and  registered  in such names as the Holder may
request;  and,  within three Trading Days after a Registration  Statement  which
includes Registrable Securities is declared effective by the Commission, deliver
and cause legal counsel selected by the Company to deliver to the transfer agent
for the  Registrable  Securities  (with  copies to the  Holder)  an  appropriate
instruction and, to the extent necessary, an opinion of such counsel;

(h) take all such other  lawful  actions  reasonably  necessary  to expedite and
facilitate  the  disposition  by the  Holder of its  Registrable  Securities  in
accordance with the intended methods  therefor  provided in the prospectus which
are customary for issuers to perform under the circumstances;

(i) in the event of an underwritten offering, promptly include or incorporate in
a  Prospectus  supplement  or  post-effective   amendment  to  the  Registration
Statement such  information as the managers  reasonably agree should be included
therein  and to which  the  Company  does  not  reasonably  object  and make all
required filings of such Prospectus  supplement or  post-effective  amendment as
soon as  practicable  after it is  notified  of the  matters to be  included  or
incorporated in such Prospectus supplement or post-effective amendment; and

(j)      maintain a transfer agent and registrar for its Common Stock.

Section 6.        Indemnification.

(a) The  Company  agrees to  indemnify  and hold  harmless  the  Holder and each
person, if any, who controls the Holder within the meaning of the Securities Act
("Distributing  Holder")  against any losses,  claims,  damages or  liabilities,
joint or several (which shall, for all purposes of this Agreement,  include, but
not be limited to, all  reasonable  costs of defense and  investigation  and all
reasonable  attorneys'  fees),  to which  the  Distributing  Holder  may  become
subject, under the Securities Act or otherwise,  insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue  statement or alleged  untrue  statement  of any  material  fact
contained in the Registration  Statement, or any related preliminary prospectus,
final  prospectus  or amendment or  supplement  thereto,  or arise out of or are
based upon the  omission or alleged  omission to state  therein a material  fact
required to be stated  therein or necessary to make the  statements  therein not
misleading;  provided,  however, that the Company will not be liable in any such
case to the extent that any such loss, claim,  damage or liability arises out of
or is based upon an untrue  statement or alleged untrue statement or omission or
alleged omission made in the  Registration  Statement,  preliminary  prospectus,
final  prospectus or amendment or supplement  thereto in reliance  upon,  and in
conformity  with,   written   information   furnished  to  the  Company  by  the
Distributing  Holder,  specifically  for use in the  preparation  thereof.  This
Section  6(a) shall not inure to the  benefit of any  Distributing  Holder  with
respect to any  person  asserting  such loss,  claim,  damage or  liability  who
purchased  the  Registrable  Securities  which are the  subject  thereof  if the
Distributing  Holder failed to send or give (in violation of the  Securities Act
or the rules and  regulations  promulgated  thereunder) a copy of the prospectus
contained  in such  Registration  Statement  to such  person  at or prior to the
written confirmation to such person of the sale of such Registrable  Securities,
where the Distributing Holder was obligated to do so under the Securities Act or
the rules and regulations promulgated thereunder.  This indemnity agreement will
be in addition to any liability which the Company may otherwise have.

(b) Each Distributing Holder agrees that it will indemnify and hold harmless the
Company,  and each  officer,  director  of the  Company or person,  if any,  who
controls  the Company  within the  meaning of the  Securities  Act,  against any
losses,  claims,  damages or liabilities  (which shall, for all purposes of this
Agreement,  include,  but not be limited to, all reasonable costs of defense and
investigation  and all reasonable  attorneys'  fees) to which the Company or any
such  officer,  director  or  controlling  person may become  subject  under the
Securities  Act or  otherwise,  insofar  as  such  losses,  claims,  damages  or
liabilities  (or actions in respect  thereof) arise out of or are based upon any
untrue  statement or alleged untrue  statement of any material fact contained in
the  Registration  Statement,  or  any  related  preliminary  prospectus,  final
prospectus or amendment or supplement thereto, or arise out of or are based upon
the omission or the alleged  omission to state  therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
but in each case only to the extent that such untrue statement or alleged untrue
statement  or  omission  or  alleged  omission  was  made  in  the  Registration
Statement,  preliminary prospectus,  final prospectus or amendment or supplement
thereto in reliance upon, and in conformity with, written information  furnished
to  the  Company  by  such  Distributing  Holder,  specifically  for  use in the
preparation  thereof.  This  indemnity  agreement  will  be in  addition  to any
liability which the Distributing Holder may otherwise have.

Notwithstanding anything to the contrary herein, the Distributing Investor shall
not be  liable  under  this  Section  6(b) for any  amount  in excess of the net
proceeds to such  Distributing  Investor as a result of the sale of  Registrable
Securities pursuant to the Registration Statement.

(c)  Promptly  after  receipt by an  indemnified  party under this  Section 6 of
notice of the  commencement  of any action,  such  indemnified  party will, if a
claim in respect thereof is to be made against the indemnifying party under this
Section 6, notify the indemnifying  party of the commencement  thereof;  but the
omission so to notify the  indemnifying  party will not relieve the indemnifying
party from any liability  which it may have to any  indemnified  party except to
the extent of actual prejudice  demonstrated by the indemnifying  party. In case
any such action is brought  against any indemnified  party,  and it notifies the
indemnifying party of the commencement  thereof,  the indemnifying party will be
entitled to  participate  in, and, to the extent that it may wish,  jointly with
any other  indemnifying  party similarly  notified,  assume the defense thereof,
subject to the provisions  herein stated and after notice from the  indemnifying
party to such  indemnified  party  of its  election  so to  assume  the  defense
thereof,  the indemnifying  party will not be liable to such  indemnified  party
under this Section 6 for any legal or other  expenses  subsequently  incurred by
such  indemnified  party in  connection  with the  defense  thereof  other  than
reasonable  costs of  investigation,  unless the  indemnifying  party  shall not
pursue the action to its final conclusion.  The indemnified party shall have the
right to employ  separate  counsel in any such action and to  participate in the
defense  thereof,  but the fees and expenses of such counsel shall not be at the
expense of the  indemnifying  party if the  indemnifying  party has  assumed the
defense of the action with counsel  reasonably  satisfactory  to the indemnified
party;  provided that if the indemnified party is the Distributing  Holder,  the
fees and  expenses of such counsel  shall be at the expense of the  indemnifying
party if (i) the employment of such counsel has been specifically  authorized in
writing by the indemnifying  party, or (ii) the named parties to any such action
(including any impleaded  parties) include both the Distributing  Holder and the
indemnifying  party and the Distributing  Holder shall have been advised by such
counsel  that  there  may  be  one  or  more  legal  defenses  available  to the
indemnifying  party  different from or in conflict with any legal defenses which
may be  available  to the  Distributing  Holder (in which case the  indemnifying
party shall not have the right to assume the defense of such action on behalf of
the Distributing  Holder,  it being understood,  however,  that the indemnifying
party  shall,   in  connection   with  any  one  such  action  or  separate  but
substantially similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances, be liable only for the reasonable
fees and expenses of one separate firm of attorneys for the Distributing Holder,
which  firm shall be  designated  in writing  by the  Distributing  Holder).  No
settlement of any action against an indemnified  party shall be made without the
prior  written  consent of the  indemnified  party,  which  consent shall not be
unreasonably withheld.

All fees and expenses of the indemnified  party  (including  reasonable costs of
defense and investigation in a manner not inconsistent with this Section and all
reasonable attorneys' fees and expenses) shall be paid to the indemnified party,
as  incurred,  within ten (10)  Trading  Days of written  notice  thereof to the
indemnifying  party  (regardless of whether it is ultimately  determined that an
indemnified party is not entitled to indemnification  hereunder;  provided, that
the  indemnifying  party may require  such  indemnified  party to  undertake  to
reimburse  all such fees and  expenses  to the extent it is  finally  judicially
determined  that  such  indemnified  party is not  entitled  to  indemnification
hereunder).

Section 7. Contribution. In order to provide for just and equitable contribution
under the Securities Act in any case in which (i) the indemnified  party makes a
claim  for  indemnification  pursuant  to  Section  6 hereof  but is  judicially
determined  (by the entry of a final  judgment or decree by a court of competent
jurisdiction  and the  expiration  of time to appeal  or the  denial of the last
right of appeal)  that such  indemnification  may not be  enforced  in such case
notwithstanding the fact that the express provisions of Section 6 hereof provide
for  indemnification in such case, or (ii) contribution under the Securities Act
may be required on the part of any indemnified  party,  then the Company and the
applicable Distributing Holder shall contribute to the aggregate losses, claims,
damages  or  liabilities  to which  they may be subject  (which  shall,  for all
purposes of this Agreement, include, but not be limited to, all reasonable costs
of defense and investigation and all reasonable attorneys' fees), in either such
case (after  contribution from others) on the basis of relative fault as well as
any  other  relevant  equitable  considerations.  The  relative  fault  shall be
determined by reference  to, among other  things,  whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to  information  supplied by the Company on the one hand
or the  applicable  Distributing  Holder on the  other  hand,  and the  parties'
relative intent, knowledge,  access to information and opportunity to correct or
prevent  such  statement or omission.  The Company and the  Distributing  Holder
agree that it would not be just and equitable if  contribution  pursuant to this
Section 7 were  determined  by pro rata  allocation  or by any  other  method of
allocation which does not take account of the equitable  considerations referred
to in this  Section 7. The amount paid or payable by an  indemnified  party as a
result of the  losses,  claims,  damages or  liabilities  (or actions in respect
thereof)  referred  to above in this  Section 7 shall be deemed to  include  any
legal  or  other  expenses  reasonably  incurred  by such  indemnified  party in
connection with  investigating  or defending any such action or claim. No person
guilty of fraudulent  misrepresentation  (within the meaning of Section 11(f) of
the Securities  Act) shall be entitled to  contribution  from any person who was
not guilty of such fraudulent misrepresentation.

Notwithstanding any other provision of this Section 7, in no event shall any (i)
Holder be required to undertake liability to any person under this Section 7 for
any amounts in excess of the dollar amount of the net proceeds to be received by
such  Holder  from  the  sale of such  Holder's  Registrable  Securities  (after
deducting any fees,  discounts and commissions  applicable  thereto) pursuant to
any  Registration  Statement under which such  Registrable  Securities are to be
registered  under  the  Securities  Act and  (ii)  underwriter  be  required  to
undertake  liability  to any person  hereunder  for any amounts in excess of the
aggregate discount, commission or other compensation payable to such underwriter
with respect to the  Registrable  Securities  underwritten by it and distributed
pursuant to the Registration Statement.

Section 8. Notices. All notices,  demands,  requests,  consents,  approvals, and
other  communications  required or permitted  hereunder shall be in writing and,
unless  otherwise  specified  herein,  shall  be  (i)  personally  served,  (ii)
deposited  in the mail,  registered  or  certified,  return  receipt  requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other  address as such party shall have  specified
most recently by written notice. Any notice or other  communication  required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,   with  accurate  confirmation   generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received),  or the first  business day following  such delivery (if delivered
other than on a business day during normal  business  hours where such notice is
to be received) or (b) on the second  business day following the date of mailing
by reputable courier service, fully prepaid,  addressed to such address, or upon
actual receipt of such mailing,  whichever shall first occur.  The addresses for
such communications shall be as set forth in the Purchase Agreement.

Either party hereto may from time to time change its address or facsimile number
for notices under this Section 8 by giving at least ten (10) days' prior written
notice of such changed address or facsimile number to the other party hereto.

Section 9.  Assignment.  Neither this  Agreement nor any rights of the Holder or
the  Company  hereunder  may be assigned  by either  party to any other  person.
Notwithstanding the foregoing,  (a) the provisions of this Agreement shall inure
to the benefit of, and be  enforceable  by, any  transferee of any of the Common
Stock purchased by the Investor pursuant to the Purchase Agreement, and (b) upon
the  prior  written  consent  of  the  Company,   which  consent  shall  not  be
unreasonably withheld or delayed in the case of an assignment to an affiliate of
the Holder, the Holder's interest in this Agreement may be assigned at any time,
in whole or in part, to any other person or entity  (including  any affiliate of
the Holder) who agrees to be bound hereby.

Section 10. Additional Covenants of the Company. The Company agrees that at such
time as it meets all the requirements for the use of Securities Act Registration
Statement on Form S-3 it shall file all reports and  information  required to be
filed  by it with the  Commission  in a timely  manner  and take all such  other
action so as to maintain such eligibility for the use of such form.

Section 11.  Counterparts/Facsimile.  This  Agreement  may be executed in two or
more counterparts, each of which shall constitute an original, but all of which,
when together shall constitute but one and the same instrument, and shall become
effective  when one or more  counterparts  have been signed by each party hereto
and  delivered  to the  other  party.  In  lieu  of the  original,  a  facsimile
transmission  or copy of the original  shall be as effective and  enforceable as
the original.

Section 12. Remedies. The remedies provided in this Agreement are cumulative and
not exclusive of any remedies provided by law. If any term, provision,  covenant
or restriction of this Agreement is held by a court of competent jurisdiction to
be  invalid,  illegal,  void  or  unenforceable,  the  remainder  of the  terms,
provisions,  covenants  and  restrictions  set forth herein shall remain in full
force and effect and shall in no way be affected,  impaired or invalidated,  and
the  parties  hereto  shall  use  their  best  efforts  to find  and  employ  an
alternative  means to achieve the same or substantially  the same result as that
contemplated  by such term,  provision,  covenant or  restriction.  It is hereby
stipulated  and declared to be the intention of the parties that they would have
executed the remaining terms,  provisions,  covenants and  restrictions  without
including any of such that may be hereafter declared invalid,  illegal,  void or
unenforceable.

Section  13.  Conflicting  Agreements.  The  Company  shall not  enter  into any
agreement with respect to its securities  that is  inconsistent  with the rights
granted to the holders of Registrable  Securities in this Agreement or otherwise
prevents the Company from complying with all of its obligations hereunder.

Section 14. Headings.  The headings in this Agreement are for reference purposes
only and  shall not  affect in any way the  meaning  or  interpretation  of this
Agreement.  Section 15.  Governing Law,  Arbitration.  This  Agreement  shall be
governed by and construed in  accordance  with the laws of the State of New York
applicable to contracts  made in New York by persons  domiciled in New York City
and without  regard to its  principles  of conflicts of laws.  Any dispute under
this Agreement shall be submitted to arbitration under the American  Arbitration
Association  (the  "AAA") in New York City,  New York,  and shall be finally and
conclusively  determined by the decision of a board of arbitration consisting of
three (3)  members  (hereinafter  referred  to as the  "Board  of  Arbitration")
selected as according to the rules  governing the AAA. The Board of  Arbitration
shall meet on  consecutive  business days in New York City,  New York, and shall
reach and  render a  decision  in writing  (concurred  in by a  majority  of the
members of the Board of Arbitration)  with respect to the amount,  if any, which
the losing  party is  required  to pay to the other  party in respect of a claim
filed.  In connection  with  rendering its  decisions,  the Board of Arbitration
shall  adopt  and  follow  the laws of the  State  of New  York.  To the  extent
practical,  decisions of the Board of Arbitration shall be rendered no more than
thirty (30) calendar days following  commencement  of  proceedings  with respect
thereto.  The Board of  Arbitration  shall  cause  its  written  decision  to be
delivered to all parties involved in the dispute. The Board of Arbitration shall
be  authorized  and is  directed to enter a default  judgment  against any party
refusing to participate in the  arbitration  proceeding  with thirty days of any
deadline for such  participation.  Any decision made by the Board of Arbitration
(either  prior to or after the  expiration  of such  thirty  (30)  calendar  day
period)  shall be final,  binding and  conclusive on the parties to the dispute,
and entitled to be enforced to the fullest  extent  permitted by law and entered
in any court of competent  jurisdiction.  The prevailing  party shall be awarded
its costs,  including  attorneys' fees, from the non-prevailing party as part of
the arbitration  award. Any party shall have the right to seek injunctive relief
from any  court of  competent  jurisdiction  in any case  where  such  relief is
available.  The prevailing party in such injunctive  action shall be awarded its
costs, including attorney's fees, from the non-prevailing party.

Section 16.  Severability.  If any  provision  of this  Agreement  shall for any
reason be held invalid or  unenforceable,  such  invalidity  or  unenforceablity
shall  not  affect  any  other  provision  hereof  and this  Agreement  shall be
construed as if such invalid or unenforceable provision had never been contained
herein.

<PAGE>

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Registration  Rights  Agreement to be duly  executed,  on this __ day of August,
2000.

                                              GEOTEC THERMAL GENERATORS, INC.

                                              By:____________________________
                                              Daniel Pepe, President & COB

                                              Investwell Investments Limted

                                              By:_______________________________
                                              Hans Gassner, Authorized Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]