Document:

SECURITIES PURCHASE AGREEMENT

         SECURITIES PURCHASE  AGREEMENT,  made and entered as of this 7th day of
November, 2000 (the "Agreement"),  by and between INFOCAST CORPORATION, a Nevada
corporation (the  "Company"),  and the purchaser set forth on the execution page
hereof (the "Purchaser").

                                   WITNESSETH:
                                   ----------

         WHEREAS,  the  Company  desires  to issue and sell,  and the  Purchaser
desires to purchase,  all upon the terms and subject to the conditions set forth
in this Agreement,  (i) 7% convertible subordinated debentures of the Company in
the  form  attached  hereto  as  Exhibit  A  (individually,  a  "Debenture"  and
collectively,  the "Debentures") in the aggregate principal amount of $2,500,000
and (ii)  warrants  in the form  attached  hereto as Exhibit B  (individually  a
"Warrant" and collectively,  the "Warrants"), to acquire an aggregate of 250,000
shares of the  Company's  common  stock,  par value $.001 per share (the "Common
Stock").  The Debentures and Warrants are  collectively be referred to herein as
the "Securities."

         WHEREAS,  the Purchaser shall purchase  Debentures  having an aggregate
principal amount of $1,000,000 and Warrants to purchase 100,000 shares of Common
Stock on the date hereof (the "Initial Closing"), Debentures having an aggregate
principal  amount of $750,000 and Warrants to purchase  75,000  shares of Common
Stock on December 1, 2000 (the "Second  Closing") and the  remaining  Debentures
having an aggregate  principal amount of $750,000 and the remaining  Warrants to
purchase  75,000 shares of Common Stock on January 2, 2001 (the "Third  Closing"
and, together with the Initial Closing and the Second Closing, the "Closings").

         NOW,  THEREFORE,  in  consideration  of the  premises and of the mutual
covenants and  agreements of the parties  herein  contained,  the parties hereby
agree as follows:

         1.       Purchase and Sale of the Securities.

                  1.1 Sale and Issuance of the Securities.  Subject to the terms
and  conditions  of this  Agreement,  the  Purchaser  agrees to  purchase at the
Closings,  and the  Company  agrees  to sell and issue to the  Purchaser  at the
Closings, a Debenture and a Warrant in the principal amounts and for the numbers
of shares of Common Stock,  respectively,  as set forth opposite the Purchaser's
name on  Schedule A attached  hereto for the  purchase  price as is set forth on
Schedule  A attached  hereto;  provided,  however,  that the  obligation  of the
Purchaser  to purchase  the  Securities  to be  purchased by it hereunder at the
Second Closing and the Third Closing is  conditioned  upon the closing bid price
of the Common  Stock not being below $0.50 for three  consecutive  days on which
the Nasdaq Stock Market is open for trading subsequent to the Initial Closing.

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                  1.2 Closings.  The Closings shall take place at the offices of
Olshan Grundman Frome  Rosenzweig & Wolosky LLP, 505 Park Avenue,  New York, New
York  10022-1170  or at such other place and times as shall be  mutually  agreed
upon between the Purchaser and the Company.  At the Closings,  the Company shall
deliver to the  Purchaser a Debenture,  Warrant and an opinion of counsel to the
Company in form and substance  acceptable to the Purchaser  (acting  reasonably)
against  receipt of a certified  check or a wire transfer to the Company for the
purchase  price as is set forth on Schedule A attached  hereto to an account (in
the case of a wire transfer)  that will have been  designated by the Company not
less than one (1) business day prior to the date of such Closing.

         2.       Representations  and  Warranties  of the Company.  The Company
represents and warrants to the Purchaser as follows:

                  2.1  Corporate  Organization.  Each  of the  Company  and  its
subsidiaries  InfoCast Canada  Corporation and HomeBase Work Solutions Ltd. (the
"Subsidiaries")  is a corporation  duly organized,  validly existing and in good
standing  under the laws of the State of  Nevada  or other  jurisdiction  of its
incorporation  or  organization,  and  has all  requisite  corporate  power  and
authority to own,  operate and lease its properties and to carry on its business
as and in the places where such properties are now owned, operated and leased or
such business is now being conducted.

                  2.2  Authorization.  The Company has the  necessary  corporate
power and  authority to enter into this  Agreement and to assume and perform its
obligations  hereunder.  The  execution  and delivery of this  Agreement and the
performance  by  the  Company  of  its  obligations  hereunder  have  been  duly
authorized  by the Board of Directors of the Company.  This  Agreement  has been
duly  executed and delivered by the Company and  constitutes a legal,  valid and
binding obligation of the Company  enforceable against it in accordance with its
terms,  subject to (i) applicable  bankruptcy,  insolvency,  reorganization  and
moratorium  laws,  (ii)  other  laws  of  general   application   affecting  the
enforcement  of creditors'  rights  generally and general  principles of equity,
(iii) the  discretion of the court before which any  proceeding  therefor may be
brought,  and (iv) as rights to  indemnity  may be  limited  by federal or state
securities laws or by public policy.

                  2.3  Standing.  The  Company  and  the  Subsidiaries  has  all
requisite  corporate  power and  authority to own its assets and to carry on its
respective  businesses  as  currently  conducted  except  where  a lack  of such
corporate  power and authority  would not have a material  adverse effect on the
financial condition or results of operations of the Company and its Subsidiaries
(taken as a whole).

                  2.4 Valid  Issuance.  The shares of Common Stock issuable upon
conversion  of the  Debenture  and upon  exercise of the Warrant will be validly
issued and outstanding as fully paid and non-assessable shares of Common Stock.

                  2.5  Governmental   Consents.   No  approval,   authorization,
consent, qualification, or other order of, and no prior filing, registration, or
recording with, any court or regulatory authority

                                       -2-

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or other  governmental  authority  of  Canada or any  Province  of Canada or the
United  States is required of the Company in  connection  with the execution and
delivery  or with  the  performance  by the  Company  of this  Agreement  or the
offering and sale of the  Debentures or issue of the Warrants  except those,  if
any,  which have obtained and those which may be required to be made  subsequent
to the Initial Closing.

                  2.6 Authorized Capital.  The authorized capital of the Company
consists of: (i)  100,000,000  shares of Common  Stock,  of which,  prior to the
Initial Closing,  there will be 29,980,624  shares issued and  outstanding;  and
(ii) 100,000,000  shares of Preferred Stock, none of which, prior to the Initial
Closing, will be issued and outstanding.

                  2.7  Litigation.  Except  as set forth on  Schedule  B hereto,
there is no action,  proceeding or investigation pending or, to the knowledge of
the Company and its directors and officers,  threatened against or affecting the
Company or any of the  Subsidiaries,  at law or in equity (whether in any court,
arbitration or similar tribunal) or before or by any federal, provincial, state,
municipal  or  other  governmental  department,  commission,  board  or  agency,
domestic or foreign which would have a material  adverse effect on the condition
(financial or otherwise),  properties, assets, business or results of operations
of the Company.

                  2.8 Compliance  with Laws. The Company and each Subsidiary is,
in all material  respects,  conducting  its  respective  current  activities  in
compliance  with all applicable  laws,  rules and regulations of each applicable
jurisdiction.

                  2.9 Conflicting  Agreements.  The Company is not in default or
in breach in any  material  respect of, and the  execution  and delivery of this
Agreement by the Company,  the performance and compliance with the terms of this
Agreement  and the  issue and sale of the  Debentures  and the  Warrants  by the
Company will not result in any breach of, or be in conflict with or constitute a
default under,  or create a state of facts which,  after notice or lapse of time
or both, would constitute a default under any term or provision of the articles,
by-laws or resolutions of the Company or any material mortgage, note, indenture,
contract, agreement, instrument, lease or other document to which the Company is
a party or by which it is bound.

                  2.10  Due  Execution,   Etc.  This  Agreement  and  all  other
agreements  required in connection with the issue and sale of the Debentures and
Warrants have been or will be, at or prior to the time of closing on the Closing
Date, duly  authorized,  executed and delivered by the Company and will be valid
and binding  obligations  of the Company  enforceable  in accordance  with their
respective  terms,  except  as  enforceability  may be  limited  by  bankruptcy,
insolvency,  moratorium and similar laws affecting  creditors'  rights generally
and general principles of equity.

                  2.11  Subsidiaries.  Other than InfoCast Canada Corporation in
respect  of which the  Company  owns all of the  outstanding  equity  other than
outstanding  exchangeable  shares,  the  Company  owns  all  of the  issued  and
outstanding  shares of each Subsidiary and no person has any option,  warrant or
other right to acquire any shares of any Subsidiary.

                                       -3-

<PAGE>

                  2.12 Rights,  Options,  Etc.  Other than  2,250,000  shares of
Common Stock  reserved for issuance  upon  exercise of options that have been or
may be granted  under the  Company's  1998 Stock Option Plan,  pursuant to which
options to purchase  1,950,000  shares of Common Stock have been  granted;  (ii)
2,000,000  shares of Common Stock reserved for issuance upon exercise of options
that have been or may be granted  under the  Company's  1999 Stock  Option Plan,
pursuant to which options to purchase 1,930,000 shares of Common Stock have been
granted;  (iii)  780,000  shares of Common  Stock  reserved  for  issuance  upon
exercise of other  outstanding  options;(iv)  6,856,624  shares of Common  Stock
reserved  for  issuance  upon  exercise of  outstanding  common  stock  purchase
warrants to purchase such shares of Common Stock, (v) 1,160,000 shares of Common
Stock  reserved for issuance upon  conversion of the  Company's  outstanding  7%
Convertible Subordinated Debentures, (vi) 2,495,362 shares of Common Stock to be
exchanged on a  one-for-one  basis for  exchangeable  shares of InfoCast  Canada
Corporation,  (vii) 2,000,000  shares of Common Stock reserved for issuance upon
exercise of options that have been or may be granted  under the  Company's  2000
Stock  Option  Plan,  pursuant to which  options to purchase  350,000  shares of
Common Stock have been granted, (viii) 1,500,000 shares of Common Stock reserved
for  issuance  upon  exercise  of  options  that have been or may be  granted to
employees of the Company  formerly  with i360 inc., of which options to purchase
1,113,602  shares of common  stock have been  granted  and (ix) shares of Common
Stock  reserved for issuance upon  conversion of the Debentures and the exercise
of the Warrants  offered  hereby,  no person has any right,  agreement or option
(whether  contingent  or  absolute),  or any right  capable of becoming a right,
agreement or option for the issue or allotment of any unissued  shares of Common
Stock or any other  security  convertible  into or  exchangeable  for  shares of
Common Stock or to require the Company to purchase,  redeem or otherwise acquire
any of the issued and outstanding shares of Common Stock.

                  2.13  Material  Adverse  Change.  There  has been no  material
adverse  change  in  the  business,  affairs,  operations,  assets,  liabilities
(contingent  or  otherwise),   capital  or  ownership  of  the  Company,   on  a
consolidated  basis,  from that on the latest  dates as of which such  business,
affairs, operations,  assets, liabilities (contingent or otherwise),  capital or
ownership  are set forth in the  Company's  filings  under  the U.S.  Securities
Exchange  Act of 1934,  except as  disclosed  in writing to the  Purchaser on or
prior to the date hereof.

                  2.14 Financial Statements.  The consolidated audited financial
statements of the Company filed by the Company  pursuant to the U.S.  Securities
Exchange  Act of  1934  (the  "Financial  Statements")  have  been  prepared  in
accordance  with U.S.  generally  accepted  accounting  principles  consistently
applied,  and were true and  correct  as of the dates  thereof,  and since  such
dates,  there have been no material adverse changes in the consolidated  assets,
liabilities,  revenues,  expenses or net profit of the Company from the position
thereof as set forth therein,  except changes  arising in the ordinary course of
business or as otherwise disclosed to the Purchaser.

                  2.15  Defaults.  Neither the Company nor any  Subsidiary is in
default or breach of any contract or commitment to which it is a party and there
exists no condition,  event or act which,  with the giving of notice or lapse of
time or both would constitute such a default or breach, except for such defaults
or  breaches  that would not have a  material  adverse  effect on the  condition
(financial

                                       -4-

<PAGE>

or  otherwise),  properties,  assets,  business or results of  operations of the
Company and all such contracts and  commitments are in good standing and in full
force  and  effect  without  amendment  thereto  and  the  Company  and/or  each
Subsidiary thereof, as the case may be, is entitled to all benefits thereunder.

                  2.16  Guarantees.  Neither the Company nor any Subsidiary is a
party to or bound by any guarantee, surety or similar obligation.

                  2.17 Leases. Neither the Company nor any Subsidiary is a party
to any lease or agreement in the nature of a lease for real property, whether as
lessor or  lessee,  except  for  leases of the  Company's  offices  in  Calgary,
Toronto, Halifax, Tucson, Annapolis and Chicago.

                  2.18 Asset Sales. There is no agreement, option, understanding
or commitment,  or any right or privilege capable of becoming an agreement,  for
the purchase  from the Company or any  Subsidiary  of its business or any of its
assets other than in the usual and ordinary course of business.

                  2.19 Insider Loans. No director, former director,  officer, 5%
or greater  shareholder  or  employee of the  Company or any  Subsidiary  or any
person not  dealing at arm's  length  with any such  person is  indebted  to the
Company (on a consolidated basis).

                  2.20 Intellectual  Property.  The Company and its Subsidiaries
(collectively,  the  "Corporation")  collectively hold title to all intellectual
property  required to develop and market its products that it does not otherwise
license,  and the  Corporation  has caused all of its  employees in research and
development to sign agreements that assign their rights to intellectual property
developed  in the  course of their  employment  to the  Corporation  (including,
without limitation,  any moral rights) and the Corporation has caused any person
who  has  access  to  its  intellectual  property  to  sign  confidentiality  or
non-disclosure agreements. The Corporation holds a valid licence or is otherwise
authorized to use all intellectual  property  required for its business to which
it does not hold  title.  Each of such  licences  is in full  force and  effect,
unamended by written or oral  agreement,  and the Corporation is entitled to the
full benefit and advantage of such licence in accordance with the terms thereof.
Each of such  licences is in good standing and there has not been any default by
the Corporation,  or to the knowledge of the Corporation,  any other party under
such licence.  There are currently no disputes  between the  Corporation and any
party under any such licence.

                  2.21 Infringements.  None of the Corporation's products or, to
the  knowledge  of the  Corporation,  the  licences  to  intellectual  property,
infringes upon any copyright,  patent, mask work, integrated circuit topography,
trademark, trade name or trade secret of any person and no proceedings have been
instituted  or  are  pending  or,  to the  knowledge  of  the  Corporation,  are
threatened  which  challenge the rights of the  Corporation to its  intellectual
property in and to its products or the validity thereof.

                                       -5-

<PAGE>

                  2.22  Patents,  Etc.  All of the trade marks,  service  marks,
registered copyrights and patents, both domestic and foreign, comprising part of
the  Corporation's  intellectual  property are, to the best of the Corporation's
knowledge,  in good  standing and all  maintenance  fees which are due have been
paid.

                  2.23 Disclosures.  The Company has provided the Purchaser with
all of the information that the Purchaser has requested in writing in connection
with its decision to purchase the  Debentures  and Warrants.  To the best of the
Company's knowledge,  neither this Agreement, any of the ancillary agreements to
the  offering  of  Debentures  and  Warrants,  nor  any  other  representations,
statements  or  certificates  made  or  delivered  in  connection   herewith  or
therewith, when taken together, contains any untrue statement of a material fact
or omits to state a material  fact  necessary to make the  statements  herein or
therein not misleading to a purchaser of securities of the Company  seeking full
information  as to the  Company  and its  respective  properties,  business  and
affairs.

                  2.24  Commissions.  The Company will pay a 6% placement  agent
fee on the  gross  proceeds  of this  transaction  to  Thomson  Kernaghan  & Co.
Limited.

         3.       Representations and Warranties of the Purchaser. The Purchaser
represents and warrants to the Company as follows:

                  3.1 Organization and Existence. To the extent indicated on the
signature pages hereto,  the Purchaser is either (i) a limited  partnership duly
organized and validly existing under the laws of its state of formation,  (ii) a
limited  liability company duly organized and validly existing under the laws of
its state of formation,  (iii) a corporation duly organized and validly existing
under  the  laws of its  state  of  incorporation  or (iv)  an  individual.  The
Purchaser  represents  that it was not  organized  for the  purpose of making an
investment in the Company.

                  3.2 Authorization.  The execution, delivery and performance of
this  Agreement by the  Purchaser and the  consummation  by the Purchaser of the
transactions contemplated hereby are within the powers of the Purchaser and have
been duly  authorized by all necessary  individual,  corporate,  partnership  or
limited liability company action, as appropriate,  on the part of the Purchaser.
This  Agreement  has been duly  executed  and  delivered  by the  Purchaser  and
constitutes a legal, valid and binding  obligation of the Purchaser  enforceable
against the Purchaser in accordance  with its terms,  subject to (i)  applicable
bankruptcy,  insolvency,  reorganization and moratorium laws, (ii) other laws of
general application affecting the enforcement of creditors' rights generally and
general principles of equity, (iii) the discretion of the court before which any
proceeding  therefor  may be  brought,  and (iv) as rights to  indemnity  may be
limited by federal or state securities laws or by public policy.

                  3.3 Approvals and Consents.  No action,  approval,  consent or
authorization,  including, but not limited to, any action, approval,  consent or
authorization  by any  governmental or  quasi-governmental  agency,  commission,
board, bureau, or instrumentality is necessary or required

                                       -6-

<PAGE>

as to the Purchaser in order to constitute  this  Agreement as a valid,  binding
and enforceable obligation of the Purchaser in accordance with its terms.

                  3.4 Investment.  The Purchaser is acquiring the Debentures and
Warrants  being  purchased  by it for its own  account  as  principal,  not as a
nominee or agent, for investment  purposes only, and not with a view to, or for,
resale,  distribution  or  fractionalization  thereof in whole or in part and no
other  person or entity has a direct or  indirect  beneficial  interest  in such
Debentures   and/or  Warrants.   The  Purchaser  does  not  have  any  contract,
undertaking,  agreement  or  arrangement  with any  person  or  entity  to sell,
transfer or grant participations to such person or entity or to any third person
or entity with respect to such Debentures and Warrants.

                  3.5 Exemption From  Registration.  The Purchaser  acknowledges
that the offering and sale of the Securities (the  "Offering") is intended to be
exempt from  registration  under the  Securities  Act of 1933,  as amended  (the
"Securities  Act"),  by virtue of  Section  4(2) of the  Securities  Act and the
provisions  of  Regulation  D  promulgated   thereunder   ("Regulation  D").  In
furtherance  thereof,  the Purchaser  represents  and warrants to the Company as
follows:

                      (i)  the  Purchaser   realizes  that  the  basis  for  the
exemption  may not be present if,  notwithstanding  any  representations  and/or
warranties to the contrary  herein  contained,  the Purchaser has in mind merely
acquiring the Securities for a fixed or determinable period in the future;

                      (ii) the Purchaser  has the financial  ability to bear the
economic  risk of his  investment,  has  adequate  means for  providing  for its
current needs and  contingencies  and has no need for liquidity  with respect to
its investment in the Company; and

                      (iii) the Purchaser has such  knowledge and  experience in
financial,  and business  matters as to be capable of evaluating  the merits and
risks of an investment in the Securities.

                  3.6  Accredited  Investor.  The  Purchaser  is an  "accredited
investor," as that term is defined in Rule 501 of Regulation D.

                  3.7 Available Information. The Purchaser:

                      (i) has been furnished with any and all documents relating
to the business,  finances and  operations of the Company and the offer and sale
of the Securities that have been requested by the Purchaser;

                      (ii) has been given the  opportunity for a reasonable time
prior to the date hereof to ask  questions  of, and receive  answers  from,  the
Company  or its  representatives  concerning  the  terms and  conditions  of the
Offering and other matters  pertaining to an  investment in the  Securities,  or
that which was  otherwise  provided in order for it to  evaluate  the merits and
risks of

                                       -7-

<PAGE>

a purchase of the  Securities and the Purchaser has received what it believes to
be satisfactory answers to any such inquiries;

                      (iii) has not been furnished with any oral  representation
or oral information in connection with the Offering; and

                      (iv) has  determined  that the  Securities  are a suitable
investment  for the Purchaser  and that at this time the Purchaser  could bear a
complete loss of such investment.

                  3.8 Purchaser Representative.  The Purchaser is not relying on
any statements or  representations  made by the Company or its affiliates or any
purchaser representative with respect to the future value of the Securities.

                  3.9  Transfer  Restrictions.  The  Purchaser  will not sell or
otherwise transfer the Debentures and/or Warrants without registration under the
Securities Act or an exemption therefrom and the Purchaser fully understands and
agrees  that the  Purchaser  must  bear  the  economic  risk of the  Purchaser's
purchase because,  among other reasons,  the Securities have not been registered
under  the  Securities  Act or  under  the  securities  laws of any  state  and,
therefore,  cannot be resold, pledged,  assigned or otherwise disposed of unless
they  are  subsequently  registered  under  the  Securities  Act and  under  the
applicable  securities  laws of such  states,  or  unless  exemptions  from such
registration  requirements are available. In particular,  the Purchaser is aware
that the Securities are "restricted securities," as such term is defined in Rule
144 promulgated  under the Securities Act. The Purchaser also  understands  that
sales or transfers of the Securities are further  restricted by state securities
laws and the provisions of this Agreement.

                  3.10 Entire Agreement.  No  representations or warranties have
been made to the Purchaser by the Company, or any officer,  director,  employee,
agent, affiliate or subsidiary of the Company other than those contained herein,
and in subscribing  for the Debentures and Warrants the Purchaser is not relying
upon any representations other than those contained herein.

                  3.11 Purchaser Information. Any information that the Purchaser
has heretofore furnished or is simultaneously herewith furnishing to the Company
with respect to the Purchaser's  financial  position and business  experience is
correct and  complete as of the date of this  Agreement  and, if there should be
any material change in such information,  the Purchaser will immediately furnish
revised or corrected information to the Company.

                  3.12 Legends. The Purchaser  understands and acknowledges that
the  Securities and the shares of Common Stock  underlying the Securities  shall
bear a legend substantially as follows until (i) such securities shall have been
registered  under  the  Securities  Act  and  effectively  been  disposed  of in
accordance with an effective registration  statement thereunder;  or (ii) in the
opinion  of  counsel  for  the  Company  such  securities  may be  sold  without
registration  under the Securities  Act as well as any applicable  "Blue Sky" or
state securities laws:

                                       -8-

<PAGE>

                  "THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
                  SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES
                  ACT") OR APPLICABLE  STATE SECURITIES LAWS, AND THEY
                  MAY NOT BE  OFFERED,  SOLD,  PLEDGED,  HYPOTHECATED,
                  ASSIGNED  OR   OTHERWISE   TRANSFERRED   EXCEPT  (i)
                  PURSUANT  TO  A  REGISTRATION  STATEMENT  UNDER  THE
                  SECURITIES  ACT WHICH HAS  BECOME  EFFECTIVE  AND IS
                  CURRENT  WITH RESPECT TO THESE  SECURITIES,  OR (ii)
                  PURSUANT TO A SPECIFIC  EXEMPTION FROM  REGISTRATION
                  UNDER  THE  SECURITIES   ACT  OR  APPLICABLE   STATE
                  SECURITIES LAWS, BUT ONLY UPON A HOLDER HEREOF FIRST
                  HAVING  OBTAINED  THE WRITTEN  OPINION OF COUNSEL TO
                  INFOCAST CORPORATION (THE  "CORPORATION"),  THAT THE
                  PROPOSED   DISPOSITION   IS   CONSISTENT   WITH  ALL
                  APPLICABLE  PROVISIONS OF THE SECURITIES ACT AS WELL
                  AS  ANY   APPLICABLE   "BLUE  SKY"  OR  OTHER  STATE
                  SECURITIES LAW."

                  3.13 Purchaser Address. The address set forth on the signature
pages of this Agreement is the Purchaser's true and correct business,  residence
or domicile address.

                  3.14  Non-Marketable  Investments.   The  Purchaser's  overall
commitment   to   investments   that   are  not   readily   marketable   is  not
disproportionate  to  the  Purchaser's  net  worth,  and  an  investment  in the
Securities will not cause such overall commitment to become excessive.

                  3.15 Finders.  The Purchaser  represents and warrants that the
Purchaser has not retained any finder, broker, agent, financial advisor or other
intermediary in connection with the transactions  contemplated by this Agreement
other than  Thomson  Kernaghan & Co.  Limited and agrees to  indemnify  and hold
harmless  the  Company,  its  officers,  directors,  affiliates,   subsidiaries,
employees  and  agents  from  liability  for  any   compensation   to  any  such
intermediary  retained  by the  Purchaser  other than  Thomson  Kernaghan  & Co.
Limited and the fees and expenses of defending against such liability or alleged
liability.

                  3.16 Survival. The foregoing  representations,  warranties and
agreements shall survive the execution of this Agreement and the Closings.

         4.       Registration Rights.

                  4.1 (a)  Mandatory  Registration.  The  Company  shall use its
commercially  reasonable best efforts to file with the United States  Securities
and Exchange Commission (the "SEC"), on or prior to January 8, 2001 (the "Filing
Date") a  registration  statement  covering the resale of shares of Common Stock
(the  "Registrable  Securities")  issuable upon conversion of the Debentures and
exercise of the Warrants and shall use its commercially  reasonable best efforts
to cause such registration  statement to be declared  effective by March 7, 2001
(the "Registration

                                       -9-

<PAGE>

Deadline"). If the Company does not meet the Filing Deadline or the Registration
Deadline,  it shall continue to use its commercially  reasonable best efforts to
complete such filing or cause such Registration  Statement,  as the case may be,
to become  effective as soon as possible  thereafter.  The  aggregate  number of
Registrable  Securities  shall be at least 3,000,000 shares of Common Stock. The
Company  shall  use its  commercially  reasonable  best  efforts  to cause  such
registration statement to remain effective until the earliest of (i) the date on
which all of the  outstanding  Debentures  have been redeemed,  (ii) the date on
which  all of the  Registrable  Securities  have  been sold or (iii) the date on
which all of the  Registrable  Securities may be immediately  sold to the public
without  registration  or  restrictions   pursuant  to  Rule  144(k)  under  the
Securities Act (the "Mandatory Registration Termination Date").

                  (b) Piggyback Registration.  If, at any time subsequent to the
Mandatory Registration  Termination Date and prior to the three-year anniversary
of the Third  Closing,  the Company  proposes to file a  registration  statement
under the Act with  respect to an offering by the Company for its own account or
the account of others of any Common Stock other than a registration statement on
Form S-4 or S-8 (or any  substitute  form that may be adopted by the  Securities
and Exchange  Commission)  or filed in connection  with an exchange  offer or an
offering of securities solely to the Company's  existing security holders,  then
the Company shall in each such case give written notice of such proposed  filing
to the holders of Registrable Securities as soon as practicable (but in no event
less than 15 days before the  anticipated  filing  date),  and such notice shall
offer such holders the  opportunity  to register for resale the shares  issuable
upon  exercise of the Warrants  (the  "Warrant  Shares") as each such Holder may
request.  Each  holder of  Registrable  Securities  desiring to have its Warrant
Shares  registered  pursuant to this Section  4.1(b) shall advise the Company in
writing within 10 days after the date of receipt of the Company's  notice (which
request shall set forth the amount of Warrant Shares for which  registration  is
requested).  The Company shall include in any such piggy-back  registration  all
Warrant Shares so requested to be included.

                  The  Company  shall bear all fees and  expenses  attendant  to
registering the Warrant shares, but the holder(s) of the Registrable  Securities
shall  pay any and all  underwriting  commissions,  the  expenses  of any  legal
counsel  selected by the  holder(s) of the  Registrable  Securities to represent
them in connection  with the sale of the Warrant shares and applicable  transfer
taxes, if any.

                  (c) Demand Registration.  The Company, upon written demand(the
"Demand Notice") of the holder(s) of Registrable  Securities,  agrees to use its
commercially  reasonable  best efforts to register for resale on two  occasions,
all of the  Warrant  Shares.  On  such  occasions,  the  Company  shall  use its
commercially  reasonable best efforts to file a registration  statement covering
the resale of the Warrant  Shares  within  thirty (30) days after receipt of the
Demand  Notice and shall use its  commercially  reasonable  best efforts to have
such registration statement declared effective promptly thereafter.  The demands
for  registration  may be made at any time during the period  subsequent  to the
Mandatory Registration  Termination Date and prior to the three-year anniversary
of the Third Closing Date.

                                      -10-

<PAGE>

                  The  Company  shall bear all fees and  expenses  attendant  to
registering the Warrant Shares, but the holder(s) of the Registrable  Securities
shall  pay any and all  underwriting  commissions,  the  expenses  of any  legal
counsel  selected by the  holder(s) of the  Registrable  Securities to represent
them in  connection  with  the sale of the  Warrant  Shares  and any  applicable
transfer taxes.

                  4.2 Liquidated Damages. If the registration statement covering
the  Registrable  Securities  required  to be filed by the  Company  pursuant to
Section  4.1(a)  above is not  filed  with the SEC by the  Filing  Date then the
Company  shall pay to the  Purchaser,  as the sole remedy of such  Purchaser  in
respect of such late filing and as  liquidated  damages and not as a penalty,  a
cash amount  ("Damages")  equal to the product of (i) the outstanding  principal
amount of the  Debentures  held by the Purchaser  multiplied by (ii) .01 further
multiplied  by the number of full 30-day  periods  that passed  since the Filing
Date. Such  liquidated  damages shall continue until the earlier to occur of (i)
the filing of such registration  statement or (ii) the incurrence by the Company
of ten 30-day periods of Damages.  If the  registration  statement  covering the
Registrable  Securities  required to be filed by the Company pursuant to Section
4.1(a) above is filed by the Company  prior to the  incurrence by the Company of
ten full  30-day  periods  of Damages  pursuant  to the first  sentence  of this
Section  4.2  but is  not  declared  effective  by the  SEC on or  prior  to the
Registration Deadline,  then the Company shall pay to the Purchaser, as the sole
remedy of the Purchaser in respect of such late effective date and as liquidated
damages  and  not as a  penalty,  Damages  equal  to  the  product  of  (i)  the
outstanding  principal amount of the Debentures held by the Purchaser multiplied
by (ii) .01 further  multiplied by the number of full 30-day periods that passed
since the Registration  Deadline.  Such liquidated  damages shall continue until
the  earlier  to  occur  of  (i)  the  declaration  of   effectiveness  of  such
registration  statement or (ii) the incurrence by the Company of ten full 30-day
periods of Damages  inclusive of Damages  pursuant to the first sentence of this
Section 4.2.  For further  clarity,  the maximum  amount of  liquidated  damages
payable by the Company  pursuant to this Section 4.2 shall be ten 30-day periods
of Damages.

                  4.3  Event of  Default.  Following  the  effectiveness  of the
registration statement covering the Registrable Securities, if the Company fails
to issue freely tradable shares of Common Stock to the Purchaser upon conversion
of the  Debentures,  then such failure shall be deemed an event of default under
the Debenture. If such default is not cured within five (5) Business Days of the
occurrence  of such event,  the Purchaser  shall be entitled to  accelerate  the
repayment  of all  amounts  then  due  to the  Purchaser  under  the  Debentures
outstanding at such time.

                  4.4  Obligations  of the  Purchaser.  In  connection  with the
registration  of the  Registrable  Securities,  the  Purchaser  shall  have  the
following obligations:

                      a. It shall be a condition precedent to the obligations of
the Company to complete the registration pursuant to this Agreement with respect
to the Registrable  Securities of the Purchaser that the Purchaser shall furnish
to the Company such information  regarding  itself,  the Registrable  Securities
held by it and the intended method of disposition of the Registrable  Securities
held by it as shall be reasonably  required to effect the  registration  of such
Registrable  Securities and shall execute such documents in connection with such
registration as the Company may reasonably  request.  At least five trading days
prior to the first anticipated filing date of the Registration

                                      -11-

<PAGE>

Statement, the Company shall notify the Purchaser of the information the Company
requires from the Purchaser.

                      b. The  Purchaser,  by the  Purchaser's  acceptance of the
Registrable  Securities,  agrees to  cooperate  with the  Company as  reasonably
requested by the Company in connection  with the  preparation  and filing of the
Registration Statement hereunder, unless such Purchaser has notified the Company
in  writing  of the  Purchaser's  election  to  exclude  all of the  Purchaser's
Registrable Securities from the Registration Statement.

         5.       General Provisions.

                  5.1 Reservation of Shares. The Company shall at all times duly
reserve  for  issuance  the  number  of shares of  Common  Stock  issuable  upon
conversion of the Debentures. If at any time the Company does not have available
an amount of authorized but unissued shares of Common Stock necessary to satisfy
full conversion of all Debentures then outstanding,  then the Company shall call
and hold a meeting of its stockholders within sixty (60) days of such occurrence
for the purpose of increasing  the number of authorized  shares of Common Stock.
In such circumstances,  management of the Company agrees to vote their shares of
Common Stock in favor of increasing  the number of  authorized  shares of Common
Stock.

                  5.2 Entire Agreement; Amendment and Waiver. This Agreement and
exhibits hereto  constitute the entire agreement between the parties hereto with
respect to the subject matter  contained herein and supersedes all prior oral or
written  agreements,  if any,  between the parties  hereto with  respect to such
subject  matter and,  except as  otherwise  expressly  provided  herein,  is not
intended to confer upon any other person any rights or remedies  hereunder.  Any
amendments  hereto or modifications  hereof must be made in writing and executed
by each of the parties  hereto.  Any failure by the Company or the  Purchaser to
enforce any rights hereunder shall not be deemed a waiver of such rights.

                  5.3 Notices. Unless otherwise provided, any notice required or
permitted  under this  Agreement  shall be given in writing  and shall be deemed
effectively given (i) upon personal  delivery to the party to be notified,  (ii)
four (4) days after deposit with the United States Post Office, by registered or
certified mail, postage prepaid, or (iii) one day after deposit with a reputable
overnight  courier  service  and  addressed  to the party to be  notified at the
address  indicated for such party on the signature page hereof, or at such other
address as such party may designate by ten (10) days' advance  written notice to
the other  parties,  with a copy  (which  shall not  constitute  notice) for the
Company to Olshan Grundman Frome Rosenzweig & Wolosky LLP, 505 Park Avenue,  New
York, New York 10022-1170, Attention: Jeffrey S. Spindler, Esq.

                  5.4 Governing  Law. This  Agreement  shall be governed by, and
construed in accordance  with,  the laws of the State of New York without giving
effect to conflict of laws principles.

                  5.5 Binding Effect; Assignment. This Agreement and the various
rights and  obligations  arising  hereunder shall inure to the benefit of and be
binding upon the Company and the

                                      -12-

<PAGE>

Purchaser  and each of their  respective  successors  and assigns.  Neither this
Agreement nor any of the rights,  interests or  obligations  hereunder  shall be
transferred or assigned (by operation of law or otherwise) by any of the parties
hereto  without  the prior  written  consent of the other  parties  hereto.  Any
transfer or assignment of any of the rights,  interests or obligations hereunder
in violation of the terms hereof shall be void and of no force or effect.

                  5.6  Expenses.  All costs and expenses  incurred in connection
with this Agreement and the  transactions  contemplated  hereby shall be paid by
the party incurring such costs and expenses; provided that the Company shall pay
the reasonable  legal fees and  disbursements  of one law firm  representing the
Purchaser, up to a maximum of U.S. $25,000.

                  5.7  Headings.  The  headings  or captions  contained  in this
Agreement  are for  reference  purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

                  5.8  Pronouns.  Whenever the  pronouns  "it" or "its" are used
herein,  they  shall  also be  deemed  to mean  "he" or "his" or "she" or "hers"
whenever applicable. Words in the singular shall be read and construed as though
in the plural and words in the plural  shall be read and  construed as though in
the singular in all cases where they would so apply.

                  5.9  Severability.  If any  term or  other  provision  of this
Agreement is invalid,  illegal or  incapable of being  enforced by virtue of any
rule of law, or public  policy,  all other  conditions  and  provisions  of this
Agreement  shall  nevertheless  remain in full  force and  effect so long as the
economic  or legal  substance  of the  transactions  contemplated  hereby is not
affected in any manner adverse to any party.  Upon such  determination  that any
term or other provision is invalid,  illegal or incapable of being enforced, the
parties  hereto shall  negotiate in good faith to modify this Agreement so as to
effect  the  original  intent  of the  parties  as  closely  as  possible  in an
acceptable  manner  to the end that the  transactions  contemplated  hereby  are
fulfilled to the maximum extent possible.

                  5.10 Information Confidential. The Purchaser acknowledges that
the information  received by it pursuant  hereto may be confidential  and is for
his use only.  The  Purchaser  agrees that it will not use such  information  in
violation of the  Securities  Exchange Act of 1934,  as amended,  or  reproduce,
disclose or disseminate such information to any other person, unless the Company
has made such information available to the public generally.

                  5.11 Counterparts. This Agreement may be executed by facsimile
in one or more counterparts,  each of which shall be deemed an original, but all
of which taken together shall constitute one and the same instrument.

                            [SIGNATURE PAGE FOLLOWS]

                                      -13-

<PAGE>

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

                                         COMPANY:

                                         INFOCAST CORPORATION

                                         By: /s/ James Leech
                                               ---------------------------------
                                         Name: James Leech
                                         Title: President

                                              Address:

                                         PURCHASERS:

                                         CALP II LP

                                         By: /s/ M. McKinnon
                                             ----------------------------------
                                              Name: M. McKinnon
                                              Title: VMH International,
                                                     general partner

                [SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT]

                                      -14-

<PAGE>

                                   SCHEDULE A

                              SCHEDULE OF PURCHASER

                                 Initial Closing

                                           Number of
                         Principal          Shares
                         Amount of        Underlying
Purchaser                Debenture         Warrants            Purchase Price
---------                ---------         --------            --------------
CALP II LP               $1,000,000         100,000              $1,000,000

                                 Second Closing

                                          Number of
                         Principal          Shares
                         Amount of        Underlying
Purchaser                Debenture         Warrants            Purchase Price
---------                ---------         --------            --------------
CALP II LP               $750,000           75,000                 $750,000

                                  Third Closing

                                          Number of
                         Principal          Shares
                         Amount of        Underlying
Purchaser                Debenture         Warrants            Purchase Price
---------                ---------         --------            --------------
CALP II LP                $750,000          75,000                 $750,000

                                      -15-

<PAGE>

                                   SCHEDULE B

                                   LITIGATION

         1.       That certain lawsuit against the Company by Hope International
                  Outreach and Joseph and Diane Lemoine.

         2.       That certain  threatened  litigation  by the  investors in the
                  Company's  mid-1999 private placement  regarding,  among other
                  allegations, the failure to register their securities.

         3.       That certain lawsuit against the Company by a former employee,
                  Ms. Charlton.

                                      -16-7% CONVERTIBLE SUBORDINATED DEBENTURE

THIS SECURITY AND THE SECURITIES  ISSUABLE UPON CONVERSION OF THIS SECURITY HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR APPLICABLE
STATE  SECURITIES  LAWS, AND MAY NOT BE OFFERED,  SOLD,  PLEDGED,  HYPOTHECATED,
ASSIGNED  OR  OTHERWISE  TRANSFERRED  EXCEPT  (i)  PURSUANT  TO  A  REGISTRATION
STATEMENT  UNDER THE  SECURITIES  ACT WHICH HAS BECOME  EFFECTIVE AND IS CURRENT
WITH RESPECT TO THESE SECURITIES,  OR (ii) PURSUANT TO A SPECIFIC EXEMPTION FROM
THE  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT  AND  APPLICABLE  STATE
SECURITIES LAWS, BUT ONLY UPON A HOLDER HEREOF FIRST HAVING OBTAINED THE WRITTEN
OPINION OF COUNSEL TO THE COMPANY THAT SUCH  DISPOSITION IS CONSISTENT  WITH ALL
APPLICABLE PROVISIONS OF THE SECURITIES ACT AS WELL AS ANY APPLICABLE "BLUE SKY"
OR OTHER STATE SECURITIES LAWS.

                                                                      $1,000,000

                              INFOCAST CORPORATION

                                November 7, 2000

                  InfoCast Corporation,  a Nevada corporation (together with its
successors and assigns,  "Issuer"), for value received hereby promises to pay to
CALP II LP  ("Holder")  and its  successors,  transferees  and assigns,  by wire
transfer of immediately  available  funds to an account  designated by Holder by
notice to Issuer the  principal  sum of one million  U.S.  dollars  ($1,000,000)
("Debenture  Amount")  on November 7, 2003 (the  "Maturity  Date"),  unless this
Debenture shall have been repaid or converted prior thereto as provided  herein,
plus  accrued  and unpaid  interest  on such date and as  specified  below.  The
transferability of this 7% Convertible  Subordinated  Debenture is restricted as
provided in Section 6 below.

                  The  Debenture  Amount shall bear  interest  accruing from the
date hereof to the date this  Debenture  shall have been  converted or repaid in
full at seven percent (7.0%) per annum both before and after  maturity,  default
and judgment,  with interest at the same rate on overdue  interest and any other
overdue  amounts  payable at any time  hereunder.  All  computations of interest
payable  hereunder  shall be on the basis of a year of 365 days,  or 366 days in
the case of a leap year,  and actual  days  elapsed in the period for which such
interest is payable.  The Issuer shall pay interest  semi-annually in arrears on
March 31 and September 30 of each year,  commencing March 31, 2001 to holders of
record on March 15 and September 15, respectively.

                  Notwithstanding  the foregoing,  on the occurrence of an Event
of Default  (as  hereinafter  defined)  except an Event of Default  pursuant  to
Section 3.1(c) hereof as a result of a

<PAGE>

breach by the  Issuer of its  obligations  under  Section  4.2(c)  hereof  (such
exception to apply only until the Issuer has incurred 10 full 30-day  periods of
Damages (as hereinafter defined)),  interest payable hereunder shall accrue at a
rate of twelve percent (12.0%) per annum (the "Increased Rate),  which Increased
Rate shall accrue daily and be compounded on the last day of each month from and
after the date upon which such Event of Default  occurs  until the  earliest  to
occur of the  curing  of such  Event of  Default,  the  Redemption  Date and the
Maturity Date (or on such earlier date as the principal hereof may become due in
accordance with the provisions hereof).

                  Issuer  shall keep at its  principal  office a  register  (the
"Register")  in which shall be entered  the name and  address of the  registered
holder of this Debenture and of all transferees of this Debenture. The ownership
of this  Debenture  shall be proven by the  Register.  For the purpose of paying
principal and any interest on this  Debenture,  Issuer shall be entitled to rely
on the name and  address in the  Register  and  notwithstanding  anything to the
contrary  contained  in this  Debenture,  no Event of Default  shall occur under
Section  3.1(a) or (b) if  payment  of  principal  and any  interest  is made in
accordance with the name and address contained in the Register.

                  Section 1. Definitions. Capitalized terms used but not defined
in this  Debenture  shall  have the  meanings  given  to them in the  Securities
Purchase  Agreement.  In  addition,  the  following  terms  (except as otherwise
expressly provided) for all purposes of this Debenture shall have the respective
meanings  specified  below.  All accounting  terms used herein and not expressly
defined shall have the meanings given to them in accordance with U.S.  generally
accepted accounting principles ("GAAP") as in effect from time to time.

                  "Business  Day" shall mean any day on which banks in the State
of New York are not required or permitted by law to close.

                  "Default" shall mean any condition or event which  constitutes
an Event of Default or which, with the giving of notice or lapse of time or both
would, unless cured or waived, become an Event of Default.

                  "Debt" shall have the meaning set forth in Section 4.4.

                  "Debenture"  shall  mean  this  7%  Convertible   Subordinated
Debenture.

                  "Event of Default" shall have the meaning set forth in Section
3.1.

                  "Obligations"  shall mean all  indebtedness and liabilities of
the Issuer to the Holder from time to time, whether present or future,  absolute
or contingent,  liquidated or unliquidated,  of whatsoever nature or kind, under
or in respect of this Debenture.

                                        2

<PAGE>

                  "recognized stock exchange" shall mean any national securities
exchange, Nasdaq or the OTC Bulletin Board.

                  "Redemption  Date"  shall  mean such  date as shall  have been
selected by the Issuer on which the Issuer shall redeem this Debenture  pursuant
to Section 5.3 hereof, which date shall not be earlier than 30 days after notice
by the Issuer to the  Holder of such  proposed  redemption  as  provided  for in
Section 5.3 hereof and shall not be later than the Maturity Date.

                  "Securities   Purchase  Agreement"  shall  mean  that  certain
Securities  Purchase  Agreement  by and  between  the Issuer and the Holder with
respect to the purchase by the Holder of this Debenture.

                  "Senior Debt" shall have the meaning set forth in Section 4.4.

                  "Trading  Day" shall  mean any day on which the  Nasdaq  Stock
Market is open for trading.

                  Section 2. Payment Obligation.  No provision of this Debenture
shall  alter or  impair  the  obligations  of  Issuer,  which are  absolute  and
unconditional,  to pay the principal of and interest on this Debenture in lawful
money of the United States of America in immediately  available  funds not later
than 5:00 p.m.,  Eastern  Standard  Time on the date each such payment is due in
accordance  with this  Debenture,  subject to the conversion  provisions of this
Debenture as provided  herein.  Whenever any payment of this Debenture  shall be
stated to be due on a day which is not a Business  Day,  such  payment  shall be
made on the next succeeding Business Day and such extension of time shall not be
included in the computation of the payment of interest on this Debenture.

                  Section 3.        Events of Default and Remedies.

                  Section  3.1.  Event  of  Default  Defined;   Acceleration  of
Maturity;  Waiver of Default.  In case one or more of the following events (each
an "Event of  Default")  (whatever  the reason  for such  Event of  Default  and
whether it shall be voluntary or  involuntary or be effected by operation of law
or pursuant to any judgment,  decree or order of any court or any order, rule or
regulation of any  administrative or governmental  body) shall have occurred and
be continuing:

                  (a) default in the payment of interest on this  Debenture when
the same  becomes due and payable and the default  continues  for a period of 10
days; or

                  (b) default in the payment of all or any part of the principal
of this  Debenture  when the same  becomes  due and  payable at  maturity,  upon
redemption, or otherwise; or

                                        3

<PAGE>

                  (c)  failure on the part of Issuer  duly to observe or perform
any other of the agreements or covenants on the part of Issuer contained in this
Debenture  (other than those  covered by clauses (a) and (b) above) for a period
of 10 days  after the date on which  written  notice  specifying  such  failure,
stating that such notice is a "Notice of Default"  hereunder and demanding  that
Issuer  remedy  the same,  shall  have been given by  facsimile,  registered  or
certified mail, return receipt requested, to Issuer; or

                  (d)  Issuer  pursuant  to or within  the  meaning  of any U.S.
Bankruptcy Law (as hereinafter defined):

                           (i) commences a voluntary case or proceeding,

                           (ii)  consents  to the entry of an order  for  relief
                  against it in an involuntary case or proceeding,

                           (iii)  consents to the  appointment of a Custodian of
                  it or for all or substantially all of its property,

                           (iv) makes a general  assignment  for the  benefit of
                  its creditors, or

                           (v) admits in writing its  inability to pay its debts
                  as the same become due; or

                  (e) a court  of  competent  jurisdiction  enters  an  order or
decree under any U.S. Bankruptcy Law that:

                           (i) is for relief  against  Issuer in an  involuntary
                  case,

                           (ii)  appoints  a  Custodian  of Issuer or for all or
                  substantially all of the property of Issuer, or

                           (iii) orders the liquidation of Issuer,

                           and such  order or  decree  remains  unstayed  and in
                  effect for 60 days; or

                  (f) if, at any time  after  the date  hereof,  this  Debenture
ceases to be in full  force and effect or if this  Debenture  is  declared  by a
court to be null and void or the enforceability or validity thereof is contested
by the  Issuer  or the  Issuer  denies  in  writing  that it has any or  further
liability under this Debenture; or

                                        4

<PAGE>

                  (g) if any event of  default  occurs  under any other Debt (as
hereinafter defined); or

                  (h) if any  proceeding  is commenced  against or affecting the
Issuer:

                      (A) seeking to adjudicate it a bankrupt or insolvent, or

                      (B) seeking   liquidation,    dissolution,   winding   up,
                          reorganization,  arrangement,  adjustment, protection,
                          relief or  composition of it or any of its property or
                          debts or making a  proposal  with  respect to it under
                          any   law   relating   to   bankruptcy,    insolvency,
                          reorganization or compromise of debts or other similar
                          laws (including,  without limitation,  any application
                          under the U.S.  Bankruptcy  Law,  or with  respect  to
                          reorganization,  arrangement  or  compromise  of debt,
                          under the laws of the jurisdiction of incorporation of
                          the Issuer, or

                      (C) seeking appointment of a receiver,  trustee, custodian
                          or  other  similar  official  for it or for all or any
                          part of the  undertaking,  property  and assets of the
                          Issuer and such  proceeding is not being  contested in
                          good  faith  by  appropriate  proceedings  or,  if  so
                          contested   remains   outstanding,   undismissed   and
                          unstayed  more  than 60 days from the  institution  of
                          such first  mentioned  proceeding;  provided  however,
                          that  notwithstanding any such 60 day period shall not
                          have  elapsed,  an Event of Default shall be deemed to
                          have occurred if such proceeding  remains  outstanding
                          and,   after   the  date  of   commencement   of  such
                          proceeding,  the Issuer  does not meet its payroll for
                          any pay period arising during such 60 day period; or

                  (i) if a receiver or other custodian (interim or permanent) of
the assets of the Issuer or any part thereof is appointed by private  instrument
or by court order, if any execution,  sequestration,  extent or other process of
any court becomes  enforceable against the Issuer or the assets of the Issuer or
any part thereof, or if distress or analogous process is made against the assets
of the Issuer or any part thereof; or

                  (j) if any mortgage,  charge, lien, security interest or other
encumbrance  affecting  any real or  personal  property  of the  Issuer  becomes
enforceable; or

                  (k) the Issuer admits its inability to pay its debts generally
as they become due or otherwise acknowledges its insolvency; or

                                        5

<PAGE>

                  (l) if (i) upon the  election  by the  Issuer to  redeem  this
Debenture subsequent to March 7, 2001 and prior to the Maturity Date pursuant to
Section  5.3 hereof and the  election  by the Holder to convert  this  Debenture
prior to the Redemption  Date  applicable to such  redemption in accordance with
Section 5.1 hereof or (ii) upon the conversion of this Debenture on the Maturity
Date  pursuant to Section 5.6  hereof,  the Issuer  fails to issue to the Holder
freely tradeable securities as required pursuant to Section 5.1(f) hereof,

then,  in each  case  where an Event of  Default  occurs,  Holder,  by notice in
writing to Issuer,  may declare the aggregate  Debenture Amount plus all accrued
and unpaid  interest owing thereon to be due and payable  immediately,  and upon
any such declaration the same shall become immediately due and payable; provided
that if an Event of Default  specified in clause (d),  (e),  (f), (g), (h), (i),
(j) or (k) of this Section 3.1 occurs, the Debenture Amount plus all accrued and
unpaid interest  thereon shall become and be immediately due and payable without
any  declaration  or other  act on the part of  Holder.  If an Event of  Default
specified  in clause (f) of this  Section 3.1 occurs and is not cured  within 20
days  after the  Issuer  receives  a notice of such  Event of  Default  from the
Issuer, then the Holder shall be entitled, at any time thereafter,  to deliver a
notice to the  Issuer  notifying  the  Issuer  that the  Debenture  Amount  then
outstanding  plus all accrued and unpaid  interest is due and payable  within 10
Business Days after the receipt by the Issuer of such notice.

                  The term "U.S.  Bankruptcy  Law" means title 11, United States
Code or any  similar  United  States  federal  or state  law for the  relief  of
debtors. The term "Custodian" means any receiver, trustee, assignee,  liquidator
or similar official under any U.S. Bankruptcy Law.

                  Section 3.2. Powers and Remedies Cumulative; Delay or Omission
Not Waiver of Default.  No right or remedy herein  conferred upon or reserved to
Holder is intended to be exclusive of any other right or remedy, and every right
and remedy shall, to the extent  permitted by law, be cumulative and in addition
to every other right and remedy given hereunder or now or hereafter  existing at
law or in equity or  otherwise.  The  assertion  or  employment  of any right or
remedy hereunder,  or otherwise,  shall not prevent the concurrent  assertion or
employment of any other appropriate right or remedy.

                  No delay or omission of Holder to exercise  any right or power
accruing upon any Event of Default  occurring and continuing as aforesaid  shall
impair any such right or power or shall be  construed to be a waiver of any such
Event of Default or an acquiescence therein; and every power and remedy given by
this  Debenture  or by law may be exercised  from time to time,  and as often as
shall be deemed expedient, by Holder.

                  Section  3.3.  Waiver of Past  Defaults.  Holder may waive any
past Event of Default  hereunder and its  consequences.  In the case of any such
waiver, Issuer and Holder shall be restored to their former positions and rights
hereunder,  respectively;  but no such waiver shall extend to any  subsequent or
other Event of Default or impair any right consequent thereon.

                                        6

<PAGE>

                  Upon any such waiver, such Default shall cease to exist and be
deemed to have been  cured and not to have  occurred,  and any Event of  Default
arising  therefrom shall be deemed to have been cured,  and not to have occurred
for every purpose of this  Debenture,  and the interest rate hereon shall not be
deemed to have  increased;  but no such waiver shall extend to any subsequent or
other Event of Default or impair any right consequent thereon.

                  Section 4. Covenants. Issuer and Holder agree that, so long as
any amount payable under this Debenture remains unpaid:

                  Section 4.1. Payment of Debenture.  The Issuer will punctually
pay or cause to be paid to the  Holder the  Debenture  Amount  and  accrued  and
unpaid  interest  thereon and any other  Obligations  provided  for herein.  All
payments of principal and interest by the Issuer under this  Debenture  shall be
made free and clear of, and without  withholding or deduction for Canadian Taxes
(as hereinafter  defined)  (other than Excluded Taxes) (as hereinafter  defined)
except that in the event that such  withholding  or deduction for Canadian Taxes
(other than Excluded Taxes) is required by law with respect to any payment, such
payment shall be increased as may be necessary so that after all such deductions
or withholdings  (including  deductions or  withholdings  required in respect of
additional amounts payable hereunder),  the Holder shall receive such amounts as
it would have received had no such  Canadian  Taxes been required to be withheld
or deducted. For purposes herein, "Canadian Taxes" shall mean all taxes or other
charges  imposed by Canada or a  political  subdivision  thereof  and  "Excluded
Taxes" shall mean any Canadian Taxes payable by reason of the Holder carrying on
business in Canada or being or having in the past been resident in Canada or not
dealing at arm's length with the Issuer.

                  Section 4.2.  Covenants.  The Issuer covenants with the Holder
as follows:

                  (a) the  Issuer  will duly and  punctually  pay or cause to be
paid to the Holder the principal  amount and any interest  accrued thereon owing
under this Debenture when due, on the dates, at the place, in the currency,  and
in the manner mentioned herein;

                  (b)  the  Issuer  will  use its  reasonable  best  efforts  to
maintain its status as a reporting company under U.S. securities laws;

                  (c) in accordance  with,  and not in addition to, the Issuer's
obligations  under Section  4.1(a) of the  Securities  Purchase  Agreement,  the
Issuer  shall use its  commercially  reasonable  best  efforts  to file with the
United States  Securities and Exchange  Commission  (the "SEC"),  on or prior to
January 8, 2001 (the "Filing Date") a registration statement covering the resale
of  shares  of  Common  Stock  (the  "Registrable   Securities")  issuable  upon
conversion of this Debenture (the  "Registration  Statement")  and shall use its
commercially  reasonable best efforts to cause such registration statement to be
declared  effective  by March 7,  2001  (the  "Registration  Deadline").  If the
Company does not meet the Filing Deadline or the Registration Deadline, it shall
continue to use

                                        7

<PAGE>

its  commercially  reasonable best efforts to complete such filing or cause such
registration  statement,  as the case may be,  to  become  effective  as soon as
possible  thereafter.  The Issuer  shall use its  commercially  reasonable  best
efforts to cause  such  registration  statement  to remain  effective  until the
earliest of (i) the date on which this  Debenture  has been  redeemed,  (ii) the
date on which all of the shares  issuable upon conversion of this Debenture have
been sold by the  Holder or (iii) the date on which all of the  shares  issuable
upon conversion of this Debenture may be immediately  sold to the public without
registration or restrictions pursuant to Rule 144(k) under the Securities Act.

                  (d) the Issuer will duly and punctually  perform and carry out
all of the acts or things to be done by it as provided in this Debenture and the
Securities Purchase Agreement;

                  (e) the  Issuer  shall at all  times  maintain  its  corporate
existence and the Issuer shall carry on and conduct or shall cause to be carried
on and conducted its business and the business of its  subsidiaries  in a proper
and efficient  manner and shall keep or cause to be kept proper books of account
and make or cause  to be made  therein  true  and  accurate  entries  of all its
dealings  and  transactions  in relation to its business and the business of its
subsidiaries,  as the case may be, all in  accordance  with  generally  accepted
account  principles  applicable  in the  jurisdiction  in which such business is
carried  on,  and at all  reasonable  times  it  shall  furnish  or  cause to be
furnished  to  the  Holder  or  its  duly  authorized  agent  or  attorney  such
information  relating to its business and that of its subsidiaries as the Holder
may reasonably  require and such books of account shall at all reasonable  times
be open for inspection by the Holder or such agent or attorney;

                  (f) the Issuer shall furnish or make available to the Holder a
copy of all publicly available financial statements,  whether annual or interim,
of the Issuer and any report of the Issuer's  auditors thereon and of all annual
and other periodic  reports of the Issuer  furnished to its  shareholders at the
same time(s) as they are furnished to such shareholders; and

                  (g) at the  reasonable  request of, and on  reasonable  notice
from, the Holder, the Issuer shall furnish to the Holder a certificate  executed
by the  President  of the  Issuer or the Chief  Financial  Officer of the Issuer
stating that the Issuer has complied  with all  covenants,  conditions  or other
requirements contained in this Debenture,  non-compliance with which would, with
the  giving  of  notice  or the  lapse of time or both,  constitute  an Event of
Default  hereunder  or,  if such  is not  the  case,  specifying  the  covenant,
condition  or other  requirement  which has not been  complied  with and  giving
particulars of such  non-compliance  and the action, if any, the Issuer proposes
to take with respect thereto.

                  Section  4.3.  Liquidated  Damages  and  Covenant  to Pay.  In
accordance with, and not in addition to, the Issuer's  obligations under Section
4.2 of the Securities Purchase Agreement, if the Registration Statement referred
to in Section  4.2(c) above is not filed on or prior to the Filing Date then the
Issuer  shall pay to the Holder,  as the sole remedy of the Holder in respect of
such late filing and as liquidated  damages and not as a penalty,  a cash amount
("Damages") equal to the

                                        8

<PAGE>

product of (i) the outstanding  principal amount of this Debenture multiplied by
(ii) .01 further  multiplied  by the number of full 30-day  periods  that passed
since the Filing Date. Such liquidated  damages shall continue until the earlier
to occur of (i) the filing of such Registration Statement or (ii) the incurrence
by the Issuer of ten 30-day periods of Damages.  In accordance  with, and not in
addition  to, the  Issuer's  obligations  under  Section  4.2 of the  Securities
Purchase  Agreement,  if the Registration  Statement required to be filed by the
Issuer  pursuant  to Section  4.2(c)  above is filed by the Issuer  prior to the
incurrence by the Issuer of ten full 30-day  periods of Damages  pursuant to the
first  sentence of this Section 4.3 but is not declared  effective by the SEC on
or prior to the Registration Deadline,  then the Issuer shall pay to the Holder,
as the sole remedy of the Holder in respect of such late  effective  date and as
liquidated damages and not as a penalty, Damages equal to the product of (i) the
outstanding  principal  amount of this Debenture  multiplied by (ii) .01 further
multiplied  by  the  number  of  full  30-day  periods  that  passed  since  the
Registration Deadline.  Such liquidated damages shall continue until the earlier
to occur of (i) the declaration of effectiveness of such Registration  Statement
or (ii) the  incurrence  by the  Issuer of ten full  30-day  periods  of Damages
inclusive  of Damages  pursuant to the first  sentence of this  Section 4.3. For
further clarity,  the maximum amount of liquidated damages payable by the Issuer
pursuant to this Section 4.3 shall be ten 30-day periods of Damages.

                  Section 4.4. Subordination.  The Issuer agrees, and the Holder
by accepting  this Debenture  agrees,  that the  indebtedness  evidenced by this
Debenture  and the  payment  of  principal  thereof  and  interest  thereon  are
subordinated in right of payment to the prior payment in full of all Senior Debt
and that the  subordination is for the benefit of the holders of Senior Debt. By
its acceptance of this Debenture,  the Holder agrees to execute and deliver such
documents with respect to subordination as may be reasonably requested from time
to time by Issuer or a lender of Senior Debt.

                  "Debt"  means  the  principal  of  and  interest  on  (a)  all
indebtedness for borrowed money (including all indebtedness  evidenced by notes,
bonds,  debentures or other  securities  sold for money),  (b) all  indebtedness
incurred in the acquisition (whether by way of purchase,  merger,  consolidation
or otherwise) of any business,  real property or other assets (c)  guarantees of
indebtedness  described  in clauses (a),  (b) and (d) of any other  person,  (d)
capitalized  lease  obligations  and  (e)  renewals,   extensions,   refundings,
deferrals,   restructurings,   amendments   and   modifications   of  any   such
indebtedness, obligations or guarantees.

                  "Senior Debt" means Debt of the Issuer outstanding at any time
other than Debt which,  pursuant to its terms, is expressly  subordinate to this
Debenture.

                  Section 5.        Conversion; Redemption.

                  Section 5.1. Holder's Right to Convert. (a) Subject to Section
5.2 below, Holder shall have the right,  exercisable at any time or times before
the Maturity Date, or in the case this

                                        9

<PAGE>

Debenture has been called for  redemption  on or prior to such date,  then up to
but not after the close of business on the last Business Day  immediately  prior
to the Redemption  Date, by written notice to Issuer,  to convert this Debenture
(in whole or in part)  into such  whole  number of shares of Common  Stock as is
equal to the quotient  obtained by dividing the principal amount to be converted
plus all accrued and unpaid interest  thereon (the  "Conversion  Amount") by the
conversion  price in effect on the conversion  date.  The  conversion  price for
purposes of this  Section 5.1 shall be the lower of (i) U.S.  $1.50 per share of
Common  Stock (the  "Fixed  Exchange  Price") or (ii) 80% of the  average of the
three  lowest  closing bid prices of the  Issuer's  Common Stock for the 30 days
immediately  preceding the conversion date,  unless,  at the conversion date the
Common Stock is not listed and posted for trading on a recognized stock exchange
or quotation system, in which case the conversion price shall be U.S. $1.50.

                  (b)  The  date  on  which  the  Holder  satisfies  all  of the
requirements  for  conversion is the  conversion  date.  As soon as  practicable
following the conversion  date,  the Issuer shall deliver a certificate  for the
number of full shares of Common Stock  issuable upon the  conversion and a check
in lieu of any  fractional  share in  accordance  with  Section 5.4 hereof.  The
person  in whose  name the  certificate  is  registered  shall be  treated  as a
stockholder of record on and after the conversion date.

                  (c) Upon  surrender  of this  Debenture  that is  converted in
part,  the Issuer shall  authenticate  for the Holder a new  Debenture  equal in
principal amount to the unconverted portion of this Debenture surrendered.

                  (d) If the last day on which this  Debenture  may be converted
is not a Business Day, this  Debenture may be  surrendered  to the Issuer on the
next succeeding day that is a Business Day.

                  (e) To convert  this  Debenture,  the Holder must (1) complete
and sign the  conversion  notice on the back of this  Debenture and deliver such
notice to the Issuer,  (2) surrender this  Debenture to the Issuer,  (3) furnish
appropriate  endorsements  and transfer  documents if required by the Issuer and
(4) pay any  transfer  or similar  tax if  required.  The  Holder may  convert a
portion of this  Debenture  if the portion is  $100,000  or a whole  multiple of
$100,000.

                  (f) As  promptly  as  practicable,  but in any event not later
than five Business  Days after the  conversion  date,  the Issuer shall issue or
cause its  registrar  and  transfer  agent to issue and  deliver  or cause to be
delivered  to the Holder a  certificate  or  certificates  in the name(s) of the
person(s)  specified in the  conversion  notice  delivered to the Issuer for the
number of shares of Common Stock  deliverable upon the conversion of all or such
portion of this Debenture so converted,  and provision  shall be made in respect
of any  fraction of a share of Common  Stock as provided  in Section  5.4.  Such
conversion shall be deemed to have been effected  immediately prior to the close
of business on the conversion  date and at such time the rights of the Holder as
the holder

                                       10

<PAGE>

of all or such  portion  of this  Debenture  so  converted  shall  cease and the
person(s) in whose name(s) any certificate or certificates  for shares of Common
Stock shall be deliverable  upon such conversion  shall be deemed to have become
at such time the  holder or  holders  of  record of the  shares of Common  Stock
represented thereby.

                  Section 5.2. Restrictions. (a) If the closing bid price of the
Common Stock,  as reported by the Issuer's then  principal  trading  market,  is
equal to or less than U.S. $1.00 for five consecutive Trading Days, Holder shall
not convert any portion of this  Debenture  (or sell any shares of Common  Stock
received  upon  prior  conversions  of  this  Debenture)  for  a  period  of  20
consecutive  Trading Days  beginning  immediately  after such  five-Trading  Day
period.  If the  closing  bid  price  of the  Common  Stock on the  Trading  Day
immediately  following such  20-Trading Day Period is equal to or less than U.S.
$1.00,  then the Issuer  shall have the right,  for a period of thirty (30) days
thereafter,  to redeem all or a portion of this Debenture  (plus all accrued and
unpaid interest  thereon) at a price equal to 120% of the Conversion  Amount and
Holder may not convert any portion of this Debenture  during such 30-day period;
provided that if this Debenture has not been redeemed during such 30-day period,
then the restrictions under this Section 5.2 shall no longer be applicable.

                  (b)  If the  Issuer  elects  to  redeem  any  or  all of  this
Debenture  pursuant to this Section  5.2,  the Issuer shall mail,  in the manner
prescribed in Section 9 hereof,  a notice of redemption (an "Issuer  Notice") to
the Holder.

                  The notice shall identify the principal  amount to be redeemed
and shall state:

                  1.       the redemption date;

                  2.       the redemption price (including the amount of accrued
                           interest to be paid); and

                  3.       that interest on the portion of this  Debenture to be
                           redeemed ceases to accrue on and after the redemption
                           date.

                  If the Issuer  elects to redeem a portion  of this  Debenture,
the Issuer shall deliver to the Holder a new Debenture equal in principal amount
to the unredeemed portion of this Debenture.

                  Section  5.3.  Redemption.  At any time prior to the  Maturity
Date, upon 30 days prior written notice, the Issuer may redeem for cash all or a
portion  of this  Debenture  plus  accrued  and  unpaid  interest  thereon  at a
redemption price (the "Redemption  Price") of 120% of the Conversion  Amount. If
the  Issuer  elects  to redeem  any or all of this  Debenture  pursuant  to this
Section  5.3,  the Issuer  shall mail to the  Holder in the manner  provided  in
Section 9 an Issuer Notice. For greater certainty,  the Issuer  acknowledges and
agrees that the Holder shall be entitled to convert this Debenture in accordance
with the provisions of Section 5.1 hereof, at any time prior to the

                                       11

<PAGE>

Redemption Date notwithstanding that the Issuer may have issued an Issuer Notice
under this Section 5.3.

                  Subject to the  provisions of Section 5.1 hereof,  upon notice
having  been  given as  provided  in this  Section  5.3,  this  Debenture  shall
thereupon  become due and payable at the Redemption  Price and on the Redemption
Date in the same manner and with the same effect as if it were the Maturity Date
specified in this Debenture,  notwithstanding  anything  contained herein to the
contrary,  and from and after the  Redemption  Date, if the monies  necessary to
redeem this Debenture shall have been paid to the Holder,  such principal amount
of  this  Debenture  being  redeemed  shall  not be  considered  as  outstanding
hereunder  and interest upon such  principal  amount shall cease to accrue after
such Redemption Date.

                  Section 5.4.  Fractional  Shares.  Upon the conversion of this
Debenture pursuant to this Section 5, no fractional shares or scrip representing
fractional  shares  shall be issued.  With  respect to any  fraction  of a share
called for upon the  conversion or  redemption of this  Debenture or any portion
hereof,  a cash amount equal to the then current  market price of such  fraction
shall be paid to Holder.  The current market price of a share of Common Stock is
the closing price of the Common Stock on a recognized stock exchange on the last
Trading Day prior to the conversion  date or Redemption  Date. In the absence of
such a listing or quotation,  the Issuer shall determine the then current market
price as it considers appropriate, acting reasonably.

                  Section 5.5.  Reservation  of Shares.  The Issuer shall at all
times while this Debenture remains  outstanding,  reserve and keep available out
of its  authorized  but  unissued  shares of Common  Stock,  for the  purpose of
effecting  the  conversion  of this  Debenture,  such number of shares of Common
Stock as shall be sufficient to effect the conversion of this Debenture.

                  If, at any time, the Issuer does not have available out of its
authorized  but  unissued  shares of Common  Stock,  Common  Stock  necessary to
satisfy the conversion of the principal amount of this Debenture and all accrued
but unpaid interest then  outstanding,  the Issuer shall call and hold a meeting
within  60 days of such  occurrence,  for the  sole  purpose  of  considering  a
resolution to increase the  authorized  capital of the Issuer to provide for the
shares of Common Stock  necessary to satisfy such  conversion.  The Issuer shall
use its best efforts to cause all  directors  and officers of the Issuer to vote
any  and  all  shares  of the  Issuer  held by such  persons  in  favor  of such
resolution.  If such  resolution  is not  approved  by the  shareholders  of the
Issuer,  then such failure to approve  shall be deemed to be an Event of Default
as contemplated in Section 3.1 hereof.

                  Section 5.6.  Maturity Date Conversion.  On the Maturity Date,
the Issuer  shall have the option of paying to the Holder the  principal  amount
then outstanding under the Debenture plus accrued and unpaid interest in cash or
to convert  such  outstanding  principal  and accrued and unpaid  interest  into
freely tradeable shares of Common Stock of the Issuer at the Conversion Amount.

                                       12

<PAGE>

                  Section 6. Restrictions Upon  Transferability and Registration
Requirement.  This Debenture has not been  registered  under the Securities Act,
and may not be offered,  sold,  pledged,  hypothecated,  assigned or transferred
except (i) pursuant to a Registration  Statement  under the  Securities  Act, or
(ii) pursuant to a specific exemption from registration under the Securities Act
but only upon a holder hereof first having  obtained the written opinion of U.S.
counsel to the Issuer,  that the proposed  disposition  is  consistent  with all
applicable provisions of the Securities Act as well as any applicable "blue sky"
or other state securities law in the United States of America.  Furthermore,  no
transfer of this  Debenture  shall be effected  until,  and a  transferee  shall
succeed to the rights of the Holder only upon,  registration  of the transfer by
the Issuer in the  Register.  Prior to the  registration  of any  transfer  by a
Holder as provided herein,  the Issuer (and any agent of the Issuer) shall treat
the person in whose name this  Debenture is  registered as the owner thereof for
all purposes.

                  Section  7.   Adjustments.   (a)  If  any   reorganization  or
reclassification  of the capital stock of the Issuer, or consolidation or merger
of the Issuer with another  corporation (other than a consolidation or merger in
which the Issuer is the continuing  corporation and which does not result in any
reclassification  or change of the outstanding Common Stock), or the sale of all
or substantially  all of its assets to another  corporation in which the holders
of Common Stock are entitled to receive  shares,  other  securities  or property
(hereinafter a "Capital  Reorganization")  shall be effected,  and if the Holder
exercises the right to convert this  Debenture into shares of Common Stock after
the  effective  date of such  Capital  Reorganization,  then  the  Holder  shall
receive,  in lieu of the  number  of  shares  of  Common  Stock  to which it was
previously  entitled upon conversion of this Debenture,  the aggregate number of
shares,  other  securities  or other  property  which the Holder would have been
entitled  to  receive  as a result  of such  Capital  Reorganization  if, on the
effective date thereof,  the Holder had been the registered holder of the number
of shares of Common Stock to which it was  previously  entitled upon  conversion
pursuant to Section 5.1 hereof, and in any such case appropriate provision shall
be made with  respect to the rights and  interests of Holder to the end that the
provisions  hereof  shall  thereafter  be  applicable,  as  nearly as may be, in
relation to any securities or property thereafter  deliverable upon the exercise
hereof.  The Issuer  shall not effect  any such  reorganization,  consolidation,
merger  or sale  unless,  prior to or  contemporaneously  with the  consummation
thereof,  the successor  corporation  (if other than the Issuer)  resulting from
such  consolidation  or merger or the  corporation  purchasing such assets shall
assume by written instrument executed and delivered to Holder, the obligation to
deliver  to Holder  such  securities  or  property  as, in  accordance  with the
foregoing provisions, Holder may be entitled to purchase or receive.

                  (b) If the  Issuer  subdivides  (by  any  stock  split,  stock
dividend, recapitalization,  reorganization,  reclassification or otherwise) its
shares  of Common  Stock  into a  greater  number of shares or issues  shares of
Common Stock (or  securities  convertible or  exchangeable  for shares of Common
Stock)  to  holders  of  shares of  Common  Stock as a stock  dividend  or other
distribution,  then,  after the date of record for effecting such subdivision or
stock dividend, the Fixed Exchange

                                       13

<PAGE>

Price in effect  immediately  prior to such subdivision will be  proportionately
reduced.  If the Company  combines or  consolidates  (by  reverse  stock  split,
recapitalization,  reorganization,  reclassification or otherwise) its shares of
Common Stock into a smaller number of shares, then, after the date of record for
effecting such combination, the Fixed Exchange Price in effect immediately prior
to such combination will be proportionately increased.

                  (c) If and  whenever  at any time  after the date  hereof  and
prior to the  Maturity  Date the Issuer shall fix a record date for the issuance
of rights, options or warrants to all or substantially all of the holders of its
outstanding  shares of Common Stock entitling them to subscribe for,  acquire or
purchase shares of Common Stock or securities  convertible into shares of Common
Stock at a price per share or having a  conversion  or exchange  price per share
less than the Fixed Exchange Price on such record date, the Fixed Exchange Price
shall be adjusted  immediately after such record date so that it shall equal the
price  determined by multiplying the Fixed Exchange Price then in effect on such
record date by a fraction,  the  numerator  of which will be the total number of
shares of Common Stock  outstanding  on such record date and the  denominator of
which will be the total number of shares of Common Stock  outstanding  after the
issuance  of such  rights,  options or  warrants,  treating as  outstanding  the
maximum number of outstanding shares of Common Stock of the Issuer issuable upon
the exercise of such rights, options or warrants;  such adjustment shall be made
successively  whenever  such a record date is fixed;  and to the extent that any
such rights,  options or warrants are not so issued or any such rights,  options
or  warrants  are not  exercised  prior to the  expiration  thereof,  the  Fixed
Exchange  Price shall be readjusted to the Fixed Exchange Price which would then
be in effect if such  record  date had not been  fixed or to the Fixed  Exchange
Price  which  would then be in effect  based upon the number of shares of Common
Stock (or securities  convertible  into shares of Common Stock)  actually issued
upon the exercise of such rights, options or warrants, as the case may be.

                  (d) If and  whenever  at any time  after the date  hereof  and
prior to the Maturity  Date the Issuer shall fix a record date for the making of
a distribution  to all or  substantially  all of the holders of its  outstanding
shares of Common  Stock of (i) shares of any class  other than  Common  Stock or
securities  convertible  into shares of Common Stock and other than Common Stock
or securities  convertible into Common Stock distributed to holders of shares of
Common Stock pursuant to their  exercise of options to receive  dividends in the
form of such  shares in lieu of  dividends  paid in the  ordinary  course on the
shares of Common Stock;  or (ii) rights,  options or warrants  (excluding  those
referred to in subsection (c) above); or (iii) evidence of its indebtedness;  or
(iv) assets  (excluding  dividends paid in the ordinary  course);  then, in each
such case,  the Fixed Exchange  Price shall be adjusted  immediately  after such
record date so that it shall equal the price determined by multiplying the Fixed
Exchange Price in effect on such record date by a fraction, (A) the numerator of
which  will  be (x)  the  product  of the  number  of  shares  of  Common  Stock
outstanding  on such record date and the Current  Market  Price (as  hereinafter
defined) of the shares of Common  Stock on such record  date,  less (y) the fair
market value,  as determined by the board of directors of the Issuer,  acting in
good faith, which determination shall be conclusive) of such

                                       14

<PAGE>

securities,  indebtedness  or property or other assets so issued or distributed;
and (B) the  denominator of which will be the product of the number of shares of
Common  Stock  outstanding  on such record and the Current  Market  Price of the
shares  of Common  Stock on such  record  date.  Such  adjustment  shall be made
successively  whenever such a record date is fixed;  and to the extent that such
distribution is not so made, the Fixed Exchange Price shall be readjusted to the
Fixed  Exchange  Price which would then be in effect if such record date had not
been fixed or to the Fixed  Exchange  Price which would then be in effect  based
upon such shares,  rights,  options or warrants or evidences of  indebtedness or
assets  actually  distributed,  as the  case  may  be;  in  clause  (iv) of this
subsection (d) the term  "dividends  paid in the ordinary  course" shall include
the value of any securities or other  property or assets  distributed in lieu of
cash dividends paid in the ordinary  course at the option of shareholders of the
Issuer.

                  (e) If any event occurs as to which in the reasonable  opinion
of the Issuer,  in good faith,  the other  provisions  of this Section 7 are not
strictly  applicable but the lack of any adjustment  would not in the opinion of
the Issuer fairly protect the conversion rights of the Holder in accordance with
the basic intent and principles of such  provisions,  or if strictly  applicable
would not fairly protect the conversion  rights of the Holder in accordance with
the basic  intent and  principles  of such  provisions,  then the  Issuer  shall
appoint a firm of independent  certified  public  accountants  (which may be the
regular  auditors of the Issuer) of recognized  national  standing,  which shall
give their opinion upon the adjustment,  if any, on a basis  consistent with the
basic intent and principles  established in the other provisions of this Section
7, necessary to preserve, without dilution, the conversion rights of the Holder.
Upon receipt of such opinion,  the Issuer shall  forthwith make the  adjustments
described therein.

                  (f)  Whenever  the Fixed  Exchange  Price shall be adjusted as
provided in Section 7 hereof,  the Issuer  shall  forthwith  file at each office
designated  for the exercise of the  conversion  rights  provided for herein,  a
statement,  signed  by the  Chairman  of the  Board,  the  President,  any  Vice
President  or Treasurer of the Issuer,  showing in  reasonable  detail the facts
requiring  such  adjustment  and the Fixed Exchange Price that will be effective
after such  adjustment.  The Issuer shall also cause a notice  setting forth any
such adjustments to be sent by mail, first class, postage prepaid, to the Holder
at its address appearing on the stock register.

                  (g) The  Issuer  shall not,  by  amendment  of its  charter or
through reorganization,  consolidation,  merger, dissolution,  sale of assets or
any other voluntary action, avoid or seek to avoid the observance or performance
of any of the  terms  of this  Debenture,  but will at all  times in good  faith
assist  in the  carrying  out of all such  terms  and in the  taking of all such
action as may be  necessary  or  appropriate  in order to protect  the rights of
Holder against dilution or other impairment.  Without limiting the generality of
the foregoing, the Issuer will not increase the par value, if any, of any shares
of stock  receivable  upon the  conversion  of this  Debenture  above the amount
payable  therefor  upon such  conversion,  and at all  times  will take all such
action as may be necessary or

                                       15

<PAGE>

appropriate  in order that the Issuer may validly  and legally  issue fully paid
and non-assessable stock upon the conversion of this Debenture.

                  (h)      For the purposes of Section 7 hereof:

                           (i)      The   adjustments    provided   herein   are
                                    cumulative  and  will  be  computed  to  the
                                    nearest  one-tenth  of one  cent and will be
                                    made successively whenever an event referred
                                    to in  Section  7  occurs,  subject  to  the
                                    following subsections of this section.

                           (ii)     No  adjustment in the Fixed  Exchange  Price
                                    will  be  required  unless  such  adjustment
                                    would  result in a  cumulative  change of at
                                    least 1% in the  prevailing  Fixed  Exchange
                                    Price;    provided,    however,   that   any
                                    adjustments which, except for the provisions
                                    of this subsection would otherwise have been
                                    required to be made, will be carried forward
                                    and taken  into  account  in any  subsequent
                                    adjustment.

                           (iii)    No  adjustment in the Fixed  Exchange  Price
                                    will be required upon the exercise from time
                                    to time of options under the Issuer's  stock
                                    option  plans for  directors,  officers  and
                                    employees  of  the  Issuer  adopted  by  the
                                    Issuer from time to time.

                           (iv)     No  adjustment in the Fixed  Exchange  Price
                                    will  be  made  in   respect  of  any  event
                                    described  in  Section 7 hereof,  other than
                                    the events  referred to in paragraph  (b) of
                                    this Section 7, if the Holder is entitled to
                                    participate in such event on the same terms,
                                    mutatis mutandis, as if it had converted the
                                    Debenture  prior  to the  effective  date or
                                    record date of such event.

                           (v)      For the purposes of this Section 7, "Current
                                    Market  Price"  as at  any  date  means  the
                                    average  of the  closing  bid  prices of the
                                    Issuer's  Common  Stock  for the 10  Trading
                                    Days immediately preceding such date.

                           (vi)     All  subdivisions  of  this  Section  7  are
                                    intended  to  operate  independently  of one
                                    another.  If a  series  of  transactions  or
                                    events occur that  requires the  application
                                    of more than one subsection,  all applicable
                                    subsections   shall  be  given   independent
                                    effect.

                  Upon each  adjustment of the Fixed  Exchange Price pursuant to
the  provisions of Section 7, the number of shares of Common Stock issuable upon
conversion of this Debenture shall

                                       16

<PAGE>

be adjusted by  multiplying a number equal to the Fixed Exchange Price in effect
immediately  prior to such  adjustment  by the number of shares of Common  Stock
issuable  upon  conversion  of this  Debenture  at  such  Fixed  Exchange  Price
immediately prior to such adjustment and dividing the product so obtained by the
adjusted Fixed Exchange Price.

                  Section 8.  Representations  and Warranties of the Issuer. The
Issuer hereby  represents and warrants to the Holder and  acknowledges  that the
Holder is relying on such  representations  and warranties in entering into this
Debenture:

                  (a) The Issuer and each of its  subsidiaries has all requisite
corporate  power and authority to own its assets and to carry on its  respective
businesses as currently  conducted  except where a lack of such corporate  power
and  authority  would  not  have a  material  adverse  effect  on the  financial
condition or results of operations of the Issuer and its subsidiaries  (taken as
a whole).

                  (b) The shares of Common Stock  issuable  upon  conversion  of
this  Debenture  will be  validly  issued  and  outstanding  as  fully  paid and
non-assessable shares of Common Stock in the capital of the Issuer.

                  (c) No approval,  authorization,  consent,  qualification,  or
other order of, and no prior filing, registration,  or recording with, any court
or  regulatory  authority  or other  governmental  authority  of  Canada  or any
Province of Canada or the United  States is required of the Issuer in connection
with the execution and delivery of this Debenture or with the performance by the
Issuer of its covenants and  obligations  under this Debenture  except those, if
any,  which have obtained and those which may be required to be made  subsequent
to the date hereof.

                  (d) The  authorized  capital  of the Issuer  consists  of: (i)
100,000,000  shares of Common Stock, of which, as of the date hereof,  there are
29,980,624  shares  issued  and  outstanding;  and (ii)  100,000,000  shares  of
Preferred  Stock,  none  of  which,  as of  the  date  hereof,  are  issued  and
outstanding.

                  (e)  Except  as set  forth  on  Schedule  B to the  Securities
Purchase Agreement,  there is no action, proceeding or investigation pending or,
to the  knowledge  of the  Issuer and its  directors  and  officers,  threatened
against or affecting the Issuer or any of the subsidiaries,  at law or in equity
(whether  in any court,  arbitration  or similar  tribunal)  or before or by any
federal,   provincial,   state,  municipal  or  other  governmental  department,
commission,  board or agency,  domestic  or foreign  which would have a material
adverse effect on the condition  (financial or otherwise),  properties,  assets,
business or results of operations of the Issuer.

                  (f) The  Issuer  and  each  of its  subsidiaries  are,  in all
material  respects,  conducting their current  activities in compliance with all
applicable laws, rules and regulations of each applicable jurisdiction.

                                       17

<PAGE>

                  (g) The Issuer is not in default or in breach in any  material
respect of, and the execution  and delivery of this  Debenture by the Issuer and
the  performance  and compliance  with the terms of this Debenture by the Issuer
will not result in any breach of, or be in conflict with or constitute a default
under, or create a state of facts which,  after notice or lapse of time or both,
would constitute a default under any term or provision of the articles,  by-laws
or  resolutions  of  the  Issuer  or any  material  mortgage,  note,  indenture,
contract, agreement,  instrument, lease or other document to which the Issuer is
a party or by which it is bound.

                  (h)  This  Debenture  and all  other  agreements  required  in
connection with the issue and sale of this Debenture as contemplated herein have
been duly authorized,  executed and delivered by the Issuer and constitute valid
and binding  obligations  of the Issuer  enforceable  in  accordance  with their
respective  terms,  except  as  enforceability  may be  limited  by  bankruptcy,
insolvency,  moratorium and similar laws affecting  creditors'  rights generally
and general principles of equity.

                  (i) Other than InfoCast Canada Corporation in respect of which
the  Issuer  owns  all  of  the  outstanding   equity  other  than   outstanding
exchangeable shares, the Issuer owns all of the issued and outstanding shares of
each of its subsidiaries and no person has any option, warrant or other right to
acquire any shares of any such subsidiaries.

                  (j) Other than  2,250,000  shares of Common Stock reserved for
issuance  upon  exercise of options  that have been or may be granted  under the
Issuer's 1998 Stock Option Plan, pursuant to which options to purchase 1,950,000
shares of Common Stock have been granted;  (ii) 2,000,000 shares of Common Stock
reserved for issuance  upon exercise of options that have been or may be granted
under the Issuer's 1999 Stock Option Plan, pursuant to which options to purchase
1,930,000  shares of Common Stock have been  granted;  (iii)  780,000  shares of
Common  Stock   reserved  for  issuance  upon  exercise  of  other   outstanding
options;(iv)  6,856,624  shares of  Common  Stock  reserved  for  issuance  upon
exercise of outstanding  common stock purchase  warrants to purchase such shares
of Common Stock, (v) 1,160,000 shares of Common Stock reserved for issuance upon
conversion of the Issuer's outstanding 7% Convertible  Subordinated  Debentures,
(vi) 2,495,362 shares of Common Stock to be exchanged on a one-for-one basis for
exchangeable  shares of InfoCast Canada  Corporation,  (vii) 2,000,000 shares of
Common Stock  reserved for issuance  upon  exercise of options that have been or
may be granted  under the Issuer's  2000 Stock  Option  Plan,  pursuant to which
options to purchase  350,000  shares of Common Stock have been  granted,  (viii)
1,500,000  shares of Common Stock reserved for issuance upon exercise of options
that have been or may be granted to employees of the Issuer  formerly  with i360
inc.,  of which options to purchase  1,113,602  shares of common stock have been
granted and (ix) shares of Common Stock reserved for issuance upon conversion of
the  Debentures  and the  exercise  of the  Warrants,  no person  has any right,
agreement or option  (whether  contingent or absolute),  or any right capable of
becoming a right, agreement or option for the issue or allotment of any unissued
shares of Common Stock or any other security  convertible  into or  exchangeable
for shares of Common Stock or to

                                       18

<PAGE>

require the Issuer to purchase,  redeem or  otherwise  acquire any of the issued
and outstanding shares of Common Stock.

                  (k) There has been no material adverse change in the business,
affairs, operations,  assets, liabilities (contingent or otherwise),  capital or
ownership of the Issuer, on a consolidated  basis, from that on the latest dates
as of which such business, affairs, operations,  assets, liabilities (contingent
or otherwise),  capital or ownership are set forth in the Issuer's filings under
the U.S.  Securities  Exchange  Act of 1934  (the  "Exchange  Act"),  except  as
disclosed in writing to the Holder on or prior to the date hereof.

                  (l)  The  consolidated  audited  financial  statements  of the
Issuer  filed  by the  Issuer  pursuant  to the  Exchange  Act  (the  "Financial
Statements")  have been  prepared in  accordance  with U.S.  generally  accepted
accounting principles  consistently applied, and were true and correct as of the
dates thereof, and since such dates, there have been no material adverse changes
in the consolidated assets, liabilities, revenues, expenses or net profit of the
Issuer from the position thereof as set forth therein, except changes arising in
the ordinary course of business or as otherwise disclosed to the Holder.

                  (m)  Neither  the  Issuer  nor any of its  subsidiaries  is in
default or breach of any contract or commitment to which it is a party and there
exists no condition,  event or act which,  with the giving of notice or lapse of
time or both would constitute such a default or breach, except for such defaults
or  breaches  that would not have a  material  adverse  effect on the  condition
(financial or otherwise),  properties, assets, business or results of operations
of the Issuer and all such contracts and commitments are in good standing and in
full force and effect  without  amendment  thereto and the Issuer and/or each of
its  subsidiaries  thereof,  as the case may be,  is  entitled  to all  benefits
thereunder.

                  (n) Neither the Issuer nor any of its  subsidiaries is a party
to or bound by any guarantee, surety or similar obligation.

                  (o) Neither the Issuer nor any of its  subsidiaries is a party
to any lease or agreement in the nature of a lease for real property, whether as
lessor or lessee, except for leases of the Issuer's offices in Calgary, Toronto,
Halifax, Tucson, Annapolis and Chicago.

                  (p)  There  is  no   agreement,   option,   understanding   or
commitment,  or any right or privilege capable of becoming an agreement, for the
purchase  from the Issuer or any of its  subsidiaries  of its business or any of
its assets other than in the usual and ordinary course of business.

                  (q) No  director,  former  director,  officer,  5% or  greater
shareholder or employee of the Issuer or any of its  subsidiaries  or any person
not dealing at arm's length with any such person is indebted to the Issuer (on a
consolidated basis).

                                       19

<PAGE>

                  (r)  The  Issuer  and  its  subsidiaries  (collectively,   the
"Corporation")  collectively hold title to all intellectual property required to
develop and market its  products  that it does not  otherwise  license,  and the
Corporation  has caused all of its employees in research and development to sign
agreements  that assign their rights to intellectual  property  developed in the
course of their employment to the Corporation  (including,  without  limitation,
any moral  rights) and the  Corporation  has caused any person who has access to
its intellectual property to sign confidentiality or non- disclosure agreements.
The  Corporation  holds a valid  licence or is otherwise  authorized  to use all
intellectual property required for its business to which it does not hold title.
Each of such licences is in full force and effect,  unamended by written or oral
agreement,  and the Corporation is entitled to the full benefit and advantage of
such licence in accordance  with the terms thereof.  Each of such licences is in
good standing and there has not been any default by the  Corporation,  or to the
knowledge  of the  Corporation,  any other party under such  licence.  There are
currently  no  disputes  between  the  Corporation  and any party under any such
licence.

                  (s) None of the Corporation's products or, to the knowledge of
the  Corporation,  the licences to  intellectual  property,  infringes  upon any
copyright,  patent, mask work, integrated circuit topography,  trademark,  trade
name or trade secret of any person and no  proceedings  have been  instituted or
are  pending or, to the  knowledge  of the  Corporation,  are  threatened  which
challenge the rights of the Corporation to its  intellectual  property in and to
its products or the validity thereof.

                  (t)  All  of  the  trade  marks,  service  marks,   registered
copyrights  and  patents,  both  domestic and  foreign,  comprising  part of the
Corporation's  intellectual  property  are,  to the  best  of the  Corporation's
knowledge,  in good  standing and all  maintenance  fees which are due have been
paid.

                  (u)  The  Issuer  has  provided  the  Holder  with  all of the
information  that the Holder has requested in writing in  connection  with their
decision to purchase  this  Debenture.  To the best of the  Issuer's  knowledge,
neither this Debenture,  any of the ancillary agreements to the offering of this
Debenture,  nor any other  representations,  statements or certificates  made or
delivered in connection herewith or therewith, when taken together, contains any
untrue  statement of a material fact or omits to state a material fact necessary
to make the  statements  herein or therein  not  misleading  to a  purchaser  of
securities  of the  Issuer  seeking  full  information  as to the Issuer and its
respective properties, business and affairs.

                  Section 9.  Modification  of Debenture.  This Debenture may be
modified,  amended or supplemented only by the written consent of the Holder and
the Issuer.

                  Section  10.  Notices.   Any  notice  or  other  communication
required  or  permitted  hereunder  shall be in writing  and shall be  delivered
personally,  by facsimile or sent by certified mail, postage prepaid,  and shall
be deemed given when so delivered personally, faxed or, if mailed, five (5) days
after the date of deposit in the United States or Canada mail as follows:

                                       20

<PAGE>

                  (i)      if to the Issuer, to:

                           InfoCast Corporation
                           One Richmond Street West, Suite 902
                           Toronto, Ontario M5h 3W4
                           Attention:  Secretary

                           with a copy to:

                           Olshan Grundman Frome Rosenzweig & Wolosky LLP
                           505 Park Avenue, 16th Floor
                           New York, New York 10022
                           Attention:  Jeffrey S. Spindler, Esq.

                  (ii)     if to the  Holder,  to the  address of such holder as
                           shown in the Register of the Issuer.

                  Section 11. Other Rights of Holder.  If at any time the Issuer
grants,  issues  or sells  any  options,  exchangeable  securities  or rights to
purchase  stock,  warrants,  securities or other property pro rata to the record
holders of any class of Common Stock (the "Purchase  Rights"),  then Holder will
be entitled to acquire,  upon the terms applicable to such Purchase Rights,  the
aggregate  Purchase  Rights which Holder could have  acquired if Holder had held
the number of shares of Common Stock acquirable upon complete conversion of this
Debenture  (without  taking into account any  limitations or restrictions on the
convertibility of the Debenture)  immediately  before the date on which a record
is taken for the grant, issuance or sale of such Purchase Rights, or, if no such
record is taken,  the date as of which the record holders of Common Stock are to
be determined for the grant, issue or sale of such Purchase Rights.

                  Section 12. Miscellaneous. This Debenture shall be governed by
and be  construed  in  accordance  with the laws of the State of New York in the
United  States of America  without  regard to the conflicts of law rules of such
state. Issuer hereby waives presentment,  demand,  notice, protest and all other
demands and notices in connection with the delivery, acceptance, performance and
enforcement of this  Debenture,  except as  specifically  provided  herein,  and
assents to extensions of the time of payment, or forbearance or other indulgence
without notice. Holder by acceptance of this Debenture agrees to be bound by the
provisions of this  Debenture.  The Section  headings herein are for convenience
only and shall not affect the construction hereof.

                  Section 13.  Severability.  If any term or other  provision of
this  Debenture is invalid,  illegal or incapable of being enforced by virtue of
any rule of law or public  policy,  all other  conditions and provisions of this
Debenture  shall  nevertheless  remain in full  force and  effect so long as the
economic  or legal  substance  of the  transactions  contemplated  hereby is not
affected in any manner adverse to any party.  Upon such  determination  that any
term or other provision is invalid,

                                       21

<PAGE>

illegal or incapable of being  enforced,  the parties hereto shall  negotiate in
good faith to modify this  Debenture so as to effect the original  intent of the
parties as  closely  as  possible  in an  acceptable  manner to the end that the
transaction contemplated hereby is fulfilled to the maximum extent possible.

                            [SIGNATURE PAGE FOLLOWS]

                                       22

<PAGE>

                  IN WITNESS  WHEREOF,  Issuer has caused this  instrument to be
duly executed as of this 7th day of November, 2000.

                                           INFOCAST CORPORATION

                                           By: /s/ James Leech
                                               ---------------------------------
                                               Name: James Leech
                                               Title: President

                                       23

<PAGE>

                                CONVERSION NOTICE

To convert this Debenture into Common Stock of the Issuer, check the box: |_|

To convert only part of this Debenture, state the amount to be
converted:                                                    $_________________

If you want the stock certificate made out in another person's name, fill in the
form below:

(Insert other person's social security or tax I.D. no.)_________________________

(Print or type other person's name, address and zip code):

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

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

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

Date: _______________________     Your Signature: ______________________________
                                                  (Sign exactly as your name
                                                  appears on the face of this
                                                  Debenture)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00017-of-00352.parquet"}]]