Document:

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                                   EXHIBIT 10.3

THESE SECURITIES AND THE SECURITIES ISSUABLE UPON THEIR EXERCISE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE TRANSFERRED UNLESS
COVERED BY AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT, A "NO ACTION"
LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION WITH RESPECT TO SUCH
TRANSFER, A TRANSFER MEETING THE REQUIREMENTS OF RULE 144 OF THE SECURITIES
AND EXCHANGE COMMISSION, OR AN OPINION OF COUNSEL SATISFACTORY TO THE ISSUER
TO THE EFFECT THAT ANY SUCH TRANSFER IS EXEMPT FROM SUCH REGISTRATION.

                           CHEQUEMATE INTERNATIONAL, INC.
                              D/B/A C-3D DIGITAL, INC.

                           COMMON STOCK PURCHASE WARRANT

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              1.     ISSUANCE.     In consideration of good and valuable
consideration, the receipt of which is hereby acknowledged by CHEQUEMATE
INTERNATIONAL, INC., D/B/A C-3D DIGITAL, INC., a Utah corporation (the
"Company"), CROOKS HOLLOW ROAD, LLC, or registered assigns (the "Holder") is
hereby granted the right to purchase at any time until 5:00 P.M., New York
City time, on May 10, 2005 (the "Expiration Date"), One Hundred Thirty-Four
Thousand Two Hundred Ninety-Two (134,292) fully paid and nonassessable shares
of the Company's Common Stock, $.0001 par value per share (the "Common Stock")
at an initial exercise price of $6.252 per share (the "Exercise Price"),
subject to further adjustment as set forth in Section 6 hereof.

              2.     EXERCISE OF WARRANTS.  (a)  This Warrant is exercisable
in whole or in part at the Exercise Price per share of Common Stock payable
hereunder, payable in cash or by certified or official bank check, or by
"cashless exercise", by means of tendering this Warrant Certificate to the
Company to receive, on conversion of this Warrant, such number of shares of
Common Stock as has a Market Value equal to the difference between the
aggregate Market Value of the shares of Common Stock issuable upon exercise of
this Warrant and the total cash exercise price thereof divided by the Market
Value.  Upon surrender of this Warrant Certificate with the annexed Notice of
Exercise Form duly executed, together with payment of the Exercise Price for
the shares of Common Stock purchased or notice of cashless exercise executed,
the Holder shall be entitled to receive a certificate or certificates for the
shares of Common Stock so purchased or issued upon conversion.  For the
purposes of this Section 2, "Market Value" shall be an amount equal to the
average closing bid price of a share of Common Stock for the ten (10) days
preceding the date on which the warrant, with the conversion form duly
exercised, is delivered to a messenger or an overnight delivery service, in
each case which gives evidence of delivery of the Notice of Exercise Form duly
executed multiplied by the number of shares of Common Stock to be issued upon
surrender of this Warrant Certificate.  As used in this Warrant Certificate,
the term "Warrant Shares" shall mean the shares of Common Stock issued or
issuable upon exercise or conversion of this Warrant.  The holder of this
Warrant Certificate shall be deemed to be the owner of the Warrant Shares
issued upon exercise or conversion of this Warrant on and as of the date of
exercise regardless of whether the stock transfer books are open or closed and
whether a physical stock certificate is issued.

              (b)    For purposes of Rule 144 promulgated under the Securities
Act, it is intended, understood and acknowledged that the Warrant Shares
issued in a cashless exercise transaction shall be deemed to have been
acquired by the Holder and the holding period for the Warrant Shares shall be
deemed to have been commenced, on the issue date provided that the provisions
of this Paragraph 2(b) are not inconsistent with any policy, interpretation,
letter ruling or other published advice by the Securities and Exchange
Commission on the subject.

              3.     RESERVATION OF SHARES.  The Company hereby agrees that at
all times during the term of this Warrant there shall be reserved for issuance
upon exercise of this Warrant such number of shares of its Common Stock as
shall be required for issuance upon exercise of this Warrant.

              4.     MUTILATION OR LOSS OF WARRANT.  Upon receipt by the
Company of evidence satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and (in the case of loss, theft or destruction)
receipt of reasonably satisfactory indemnification, and (in the case of
mutilation) upon surrender and cancellation of this Warrant, the Company will
execute and deliver a new Warrant

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of like tenor and date and any such lost, stolen, destroyed or mutilated
Warrant shall thereupon become void.

              5.     RIGHTS OF THE HOLDER.  The Holder shall not, by virtue
hereof, be entitled to any rights of a stockholder in the Company, either at
law or equity, and the rights of the Holder are limited to those expressed in
this Warrant and are not enforceable against the Company except to the extent
set forth herein.

              6.     PROTECTION AGAINST DILUTION.

                     6.1    ADJUSTMENT MECHANISM.  If an adjustment of the
Exercise Price is required pursuant to this Section 6, the number of shares of
Common Stock issuable upon exercise of this Warrant shall be adjusted to the
number of shares determined by  multiplying the total number of shares of
Common Stock Holder is entitled to purchase pursuant to this Warrant prior to
the adjustment by the Exercise Price in effect prior to the adjustment and
dividing the result by the new Exercise Price.

                     6.2    CAPITAL ADJUSTMENTS.  In case the Company shall,
subsequent to the date the Warrant was initially issued (the Initial Issuance
Date"), (a) pay a dividend or make a distribution on its shares of Common
Stock in shares of Common Stock or effect a stock split, (b) subdivide or
reclassify its outstanding Common Stock into a greater number of shares, or
(c) combine or reclassify its outstanding Common Stock into a smaller number
of shares or otherwise effect a reverse split, the Exercise Price in effect at
the time of the record date for such dividend or distribution or of the
effective date of such subdivision, combination or reclassification shall be
proportionately adjusted so that the Holder of this Warrant exercised after
such date shall be entitled to receive the aggregate number and kind of shares
which, if this Warrant had been exercised immediately prior to such time, he
would have owned upon such exercise and been entitled to receive upon such
dividend, subdivision, combination or reclassification.  Such adjustment shall
be made successively whenever any event listed in this Paragraph 6.2 shall
occur.

              6.3    In case the Company shall, subsequent to the Initial
Issuance Date, issue rights to all holders of its Common Stock entitling them
to subscribe for or purchase shares of Common Stock (or securities convertible
into Common Stock) at a price (or having a conversion price per share) less
than the current market price per share of Common Stock (as defined in
Paragraph 6.4 of this Warrant) on the record date mentioned below, the
Exercise Price shall be adjusted so that the same shall equal the price
determined by multiplying the Exercise Price in effect immediately prior to
the date of such issuance by a fraction, of which the numerator shall be the
number of shares of Common Stock outstanding on the record date mentioned
below plus the number of additional shares of Common Stock which the aggregate
offering price of the total number of shares of Common Stock so offered (or
the aggregate conversion price of the convertible securities so offered) would
purchase at such current market price per share of Common Stock, and of which
the denominator shall be the number of shares of Common Stock outstanding on
such record date plus the number of additional shares of Common Stock offered
for subscription or purchased (or into which the convertible securities so
offered are convertible).  Such adjustment shall be made successively whenever
such rights or warrants are issued and shall become effective immediately
after the record date for the determination of stockholders entitled to
receive such rights or warrants; and to the extent that shares of Common Stock
or securities convertible into Common Stock are not delivered after the
expiration of such rights or

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warrants, the Exercise Price shall be readjusted to the Exercise Price which
would then be in effect had the adjustments made upon the issuance of such
rights or warrants been made upon the basis of delivery of only the number of
shares of Common Stock (or securities convertible into Common Stock) actually
delivered.

              6.4    For the purpose of any computation under Paragraphs 6.3
of this Warrant, the current market price per share of Common Stock at any
date shall be deemed to be the average of the daily closing prices for ten
(10) consecutive trading days commencing five (5) trading days before such
date.  The closing price for each day shall be the reported last sale price
regular way or, in case no such reported sale takes place on such day, the
reported last bid price, in either case on the principal national securities
exchange or market on which the Common Stock is admitted to trading or listed
or on Nasdaq, or if not listed or admitted to trading on such exchange or such
market, the average of the reported closing bid prices as reported by Nasdaq,
the National Quotation Bureau, Inc. or other similar organization if Nasdaq is
no longer reporting such information, or if not so available, the fair market
price as determined in good faith by the Board of Directors.

              6.5 In case of any reclassification, capital reorganization or
other change of outstanding shares of Common Stock of the Company, or in case
of any consolidation or merger of the Company with or into another corporation
(other than a merger in which the Company is the continuing corporation and
which does not result in any reclassification, capital reorganization or other
change of outstanding shares of Common Stock of the class issuable upon
exercise of this Warrant) or in case of any sale, lease or conveyance to
another corporation of the property of the Company as an entirety, the Company
shall, as a condition precedent to such transaction, cause effective
provisions to be made so that the Holder shall have the right thereafter by
exercising this Warrant, to purchase the kind and amount of shares of stock
and other securities and property receivable upon such reclassification,
capital reorganization and other change, consolidation, merger, sale or
conveyance by a holder of the number of shares of Common Stock which might
have been purchased upon exercise of this Warrant immediately prior to such
reclassification, change, consolidation, merger, sale or conveyance.  Any such
provision shall include provision for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided for in this
Warrant.  The foregoing provisions of this Paragraph 6.5 shall similarly apply
to successive reclassifications, capital reorganizations and changes of shares
of Common Stock and to successive consolidations, mergers, sales or
conveyances.  Notwithstanding the foregoing, in the event that the Company
effects a transaction by which the holders of Common Stock receive cash and no
other consideration in the form of equity, this Warrant shall be automatically
deemed to have been exercised pursuant to the cashless exercise provisions of
this Warrant on and as of the effective date of such transaction, with the
Market Value being the consideration per share payable to the holders of the
Common Stock.  If the Market Price is less than the then current Exercise
Price, this Warrant shall terminate and the Holder shall have no rights
pursuant to this Warrant.

              7.     TRANSFER TO COMPLY WITH THE SECURITIES ACT; REGISTRATION
RIGHTS.

              (a)  Neither this Warrant nor the Warrant Shares have been
registered under the Securities Act of 1933, as amended, (the "Act"), and this
Warrant and has been issued to the Holder for investment and not with a view
to the distribution of either the Warrant or the Warrant Shares.  Neither this
Warrant nor any of the Warrant Shares or any other security issued or issuable
upon exercise of this Warrant may be sold, transferred, pledged or
hypothecated in the absence of an effective

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registration statement under the Act relating to such security or an opinion
of counsel satisfactory to the Company that registration is not required under
the Act.  Each certificate for the Warrant, the Warrant Shares and any other
security issued or issuable upon exercise of this Warrant shall contain a
legend on the face thereof, in form and substance satisfactory to counsel for
the Company, setting forth the restrictions on transfer contained in this
Section.

              (b)  The Holder is entitled to the benefits of a Registration
Rights Agreement, dated May 10, 2000, between the Company and initial holders
of this Warrant.

              8.     NOTICES. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be
in writing and, unless otherwise specified herein, shall be (a) personally
served,(b) deposited in the mail, registered or certified, return receipt
requested, postage prepaid, (c) delivered by reputable courier service which
provides evidence of delivery with charges prepaid, or (d) transmitted by hand
delivery, or (e) by facsimile, addressed as set forth below or to such other
address as such party shall have specified most recently by written notice
given in accordance herewith. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (i) upon hand
delivery or delivery at the address or number designated below (if delivered
on a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (ii) on the second business day following the date of
mailing by express courier service or on the fifth business day after
deposited in the mail, in each case, fully prepaid, addressed to such address,
or upon actual receipt of such mailing, whichever shall first occur or (iii)
if by facsimile, upon confirmation of receipt by the recipient or confirmation
of transmission in another manner provided in this SECTION 13.8. The addresses
for such communications shall be:

                     IF TO THE COMPANY:

                            Chequemate International, Inc.
                            d/b/a C-3D Digital, Inc.
                            330 Washington Boulevard, Suite 507
                            Marina del Rey, California 90292
                            ATTENTION: Alan Hunter, Esq.
                                         General Counsel
                            Tel No.: (310) 305-3659
                            Fax No.:

                     WITH A COPY (WHICH SHALL NOT CONSTITUTE NOTICE) TO:

                            Esanu Katsky Korins & Siger, LLP
                            605 Third Avenue
                            New York, New York 10158
                            ATTENTION: Asher S. Levitsky P.C.
                            Tel No.: (212) 716-3239
                            Fax No.: (212) 953-6899

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                     IF TO PURCHASER:

                            Crooks Hollow Road LLC
                            Corporate Center
                            Windward One
                            West Bay Road
                            P.O. Box 31106 SMB
                            Grand Cayman, Cayman Islands

                     WITH A COPY (WHICH SHALL NOT CONSTITUTE NOTICE) TO:

                            Krieger & Prager, LLP
                            39 Broadway, Suite 1440
                            New York, New York 10006
                            ATTENTION: Samuel M. Krieger, Esq.
                            Tel No.: (212) 363-2900
                            Fax No: (212) 363-2999

Either party hereto may from time to time change its address or facsimile
number for notices under this Section 9.1 by giving at least ten (10) days'
prior written notice of such changed address or facsimile number to the other
party hereto.

              9.     SUPPLEMENTS AND AMENDMENTS; WHOLE AGREEMENT.  This
Warrant may be amended or supplemented only by an instrument in writing signed
by the parties hereto.  This Warrant of even date herewith contain the full
understanding of the parties hereto with respect to the subject matter hereof
and thereof and there are no representations, warranties, agreements or
understandings other than expressly contained herein and therein.

              10.    GOVERNING LAW.  This Warrant shall be deemed to be a
contract made under the laws of the State California and for all purposes
shall be governed by and construed in accordance with the laws of such State
applicable to contracts to be made and performed entirely within such State.

              11.    COUNTERPARTS.  This Warrant may be executed in any number
of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one
and the same instrument.

              12.    DESCRIPTIVE HEADINGS.  Descriptive headings of the
several Sections of this Warrant are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions
hereof.

       IN WITNESS WHEREOF, the parties hereto have executed this Warrant as of
the     day of May, 2000.

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                            CHEQUEMATE INTERNATIONAL, INC.
                            D/B/A C-3D DIGITAL, INC.

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

                                   -----------------------------------------
                                   Its
                                      --------------------------------------

Attest:

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

                           NOTICE OF EXERCISE OF WARRANT

       The undersigned hereby irrevocably elects to exercise the right,
represented by the Warrant Certificate dated as of ______________, to purchase
__________ shares of the Common Stock, par value $.0001 per share, of
___________________ and tenders herewith payment in accordance with Section 1
of said Common Stock Purchase Warrant.

       Please deliver the stock certificate to:

Dated:
      ------------------------

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

       CASH:  $
                ------------------------

       CASHLESS

       A.     Aggregate Market Value of Warrant Shares         $
                                                                ---------------

       B.     Aggregate Cash Exercise Price                    $
                                                                ---------------

       C.     Market Value Per Share                           $
                                                                ---------------

                     A - B  = No. of Shares To be Issued        ---------------
                         C

                                       60<PAGE>

                                    EXHIBIT 10.4

                     CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $295,000.00                                          Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the"Borrower") promises to pay to Azure Agents Limited
(referred to herein as the "Lender"), or order, at the address the Lender
shall designate in writing to the Borrower from time to time, the sum of Two
Hundred Ninety Five Thousand dollars ($295,000) or the aggregate unpaid
principal balance of all advances made to the Borrower by the Lender pursuant
to this Note from time to time ("Advances") on April 1, 2001 ("Maturity
Date") in lawful money of the United States and in immediately available
funds, together with interest on the unpaid principal balance of this
Convertible Line of Credit Promissory Note ("Note") computed on the basis of a
360 day year and charged on actual days the principal amount of any Advance
is outstanding, at the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

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       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $127,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by the
              Lender to preferred stock is $168,000.  Provided, however, the
              Lender acknowledges that the Borrower does not currently have
              preferred stock authorized by its Articles of Incorporation, but
              that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of conversion is subject to such approval by
              the Borrower's shareholders.  The number of preferred shares and
              the per share price is to be determined by the Borrower and
              ratified by the Borrower shareholders.

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the event,
              at any time after the date hereof, the holders of the common
              stock of the Borrower shall have received, or, on or after the
              record date fixed for the determination of eligible stockholders,
              shall have become entitled to receive, without payment therefore,
              other or additional stock or other securities or property by way
              of stock-split, spinoff, reclassification, combination of shares
              or similar corporate rearrangement, then and in each such case
              the Lender, upon the exercise hereof as provided herein, shall be
              entitled to receive the amount of stock and other securities and
              property which the Lender would hold on the date of such exercise
              if on record date of such corporate reclassification Lender had
              been the holder of record of the number of shares of common stock
              of the Borrower called for in the event of complete conversion of
              the Note and had thereafter retained such shares and/or all other
              or additional stock and other securities and property receivable
              by Lender as aforesaid during such period, giving effect to all
              adjustments called for during such period.

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              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in case,
              after such date, the Borrower shall consolidate with or merge
              into another corporation or convey all or substantially all of
              its assets to another corporation, then and in each such case
              the Lender, upon the exercise of its conversion rights at any
              time after the consummation of such reorganization,
              consolidation, merger or conveyance, shall be entitled to
              receive, in lieu of the stock or other securities and property
              receivable upon the conversion of this Note prior to such
              consummation, the stock or other securities or property to which
              Lender would be entitled had the Lender converted this Note
              immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public offering
              of such equity securities solely for cash, on a registration form
              that would also permit the registration of the shares of common
              stock or preferred stock issuable upon conversion of this Note,
              the Borrower shall promptly give the Lender written notice of
              such proposal.  Within thirty days after the notice is given,
              the Lender shall give notice as to the number of shares of
              common stock or preferred stock, if any, which the Lender
              requests be registered simultaneously with such registration by
              the Borrower. The Borrower shall use its best efforts to include
              such shares in such registration statement and to cause such
              registration statement to become effective with respect to such
              shares.  All costs in connection such registration statement
              shall be borne by the Borrower.  The Lender shall bear all
              underwriting discounts, selling commissions, sales concessions
              and similar expenses applicable to the sale of the Lender's
              common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

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       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower shareholders if consent of
shareholders is required, fails to approve or ratify all of the terms of this
Note, or if the Borrower otherwise defaults under the terms of this Note or
the Security Agreement, then the holder hereof, following the giving of 10
days written notice may accelerate this Note and declare the entire balance
due and owing whereupon the Borrower agrees to pay the entire balance of the
Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.   Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance, default or enforcement of this Note
and each agrees that the holder, from time to time, may renew, modify or
extend performance of obligations hereunder without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

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                                 SECURITY AGREEMENT

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Azure Agents Limited

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be

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granted contemporaneously with this Security Agreement.  There is no
financing statement now filed or recorded covering any of the Collateral.
Obligor is in exclusive possession of the Collateral.

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment, levy, or other seizure by legal process
or otherwise of any or all Collateral, (ii) any lien or encumbrance or claim
thereof on any or all Collateral, (iii) any attempt to realize upon any or all
Collateral under any lien or encumbrance, regardless of whether junior or
senior to the Security Interest herein, and (iv) any claim questioning the
legality, validity, binding nature, enforceability, perfection, or priority of
the Security Interest herein.  Obligor shall notify Secured Party immediately
in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating  to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured

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<PAGE>

Party (including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note  to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2   If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

                                     67

<PAGE>

       Dated as of the date first above written.

                                          "Obligor"

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          by

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $275,000.00                                          Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the"Borrower") promises to pay to Bournville
Management, Ltd. (referred to herein as the "Lender"), or order, at the
address the Lender shall designate in writing to the Borrower from time to
time, the sum of Two Hundred Seventy Five Thousand dollars ($275,000) or the
aggregate unpaid principal balance of all advances made to the Borrower by the
Lender pursuant to this Note from time to time ("Advances") on April 1, 2001
("Maturity Date") in lawful money of the United States and in immediately
available funds, together with interest on the unpaid principal balance of
this Convertible Line of Credit Promissory Note ("Note") computed on the basis
of a 360 day year and charged on actual days the principal amount of any
Advance is outstanding, at the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

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<PAGE>

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $120,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by the
              Lender to preferred stock is $155,000.  Provided, however, the
              Lender acknowledges that the Borrower does not currently have
              preferred stock authorized by its Articles of Incorporation, but
              that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of conversion is subject to such approval by
              the Borrower's shareholders.  The number of preferred shares and
              the per share price is to be determined by the Borrower and
              ratified by the Borrower shareholders.

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the
              event, at any time after the date hereof, the holders of the
              common stock of the Borrower shall have received, or, on or
              after the record date fixed for the determination of eligible
              stockholders, shall have become entitled to receive, without
              payment therefore, other or additional stock or other securities
              or property by way of stock-split, spinoff, reclassification,
              combination of shares or similar corporate rearrangement, then
              and in each such case the Lender, upon the exercise hereof as
              provided herein, shall be entitled to receive the amount of
              stock and other securities and property which the Lender would
              hold on the date of such exercise if on record date of such
              corporate reclassification Lender had been the holder of record
              of the number of shares of common stock of the Borrower called
              for in the event of complete conversion of the Note and had
              thereafter retained such shares and/or all other or additional
              stock and other securities and property receivable by Lender as
              aforesaid during such period, giving effect to all adjustments
              called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in case,
              after such date, the Borrower shall consolidate with or merge
              into another corporation or convey all or substantially all of
              its assets to another corporation, then and in each such case
              the Lender, upon the exercise of its conversion rights at any
              time after the consummation of such

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<PAGE>

              reorganization, consolidation, merger or conveyance, shall be
              entitled to receive, in lieu of the stock or other securities
              and property receivable upon the conversion of this Note prior
              to such consummation, the stock or other securities or property
              to which Lender would be entitled had the Lender converted this
              Note immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public offering
              of such equity securities solely for cash, on a registration form
              that would also permit the registration of the shares of common
              stock or preferred stock issuable upon conversion of this Note,
              the Borrower shall promptly give the Lender written notice of
              such proposal.  Within thirty days after the notice is given, the
              Lender shall give notice as to the number of shares of common
              stock or preferred stock, if any, which the Lender requests be
              registered simultaneously with such registration by the Borrower.
              The Borrower shall use its best efforts to include such shares in
              such registration statement and to cause such registration
              statement to become effective with respect to such shares.  All
              costs in connection such registration statement shall be borne by
              the Borrower.  The Lender shall bear all underwriting discounts,
              selling commissions, sales concessions and similar expenses
              applicable to the sale of the Lender's common stock or preferred
              stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower

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<PAGE>

shareholders if consent of shareholders is required, fails to approve or
ratify all of the terms of this Note, or if the Borrower otherwise defaults
under the terms of this Note or the Security Agreement, then the holder
hereof, following the giving of 10 days written notice may accelerate this
Note and declare the entire balance due and owing whereupon the Borrower
agrees to pay the entire balance of the Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the State
of Utah.

       8.  WAIVER OF NOTICE, ETC.   Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance, default or enforcement of this Note
and each agrees that the holder, from time to time, may renew, modify or
extend performance of obligations hereunder without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                             /s/ J. Michael Heil, CEO
                                          -------------------------------
                                          By

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<PAGE>

                                 SECURITY AGREEMENT

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Bournville Management Ltd.

       Collateral: All tangible and intangible assets of the Obligor, including
       patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
       May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

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<PAGE>

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment, levy, or other seizure by legal process
or otherwise of any or all Collateral, (ii) any lien or encumbrance or claim
thereof on any or all Collateral, (iii) any attempt to realize upon any or all
Collateral under any lien or encumbrance, regardless of whether junior or
senior to the Security Interest herein, and (iv) any claim questioning the
legality, validity, binding nature, enforceability, perfection, or priority of
the Security Interest herein.  Obligor shall notify Secured Party immediately
in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

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<PAGE>

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the  Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note  to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2 If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                                 "Obligor"

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<PAGE>

                                                 CHEQUEMATE INTERNATIONAL, INC.

                                                     /s/ J. Michael Heil, CEO
                                                 ------------------------------
                                                 ---------------------------by

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $290,000.00                                     Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
   (referred to herein as the "Borrower") promises to pay to Chelsea
International Limited (referred to herein as the "Lender"), or order, at the
address the Lender shall designate in writing to the Borrower from time to
time,  the sum of Two Hundred Ninety Thousand dollars ($290,000) or the
aggregate unpaid principal balance of all advances made to the Borrower by the
Lender  pursuant to this Note from time to time ("Advances") on April 1, 2001
("Maturity Date") in lawful money of the United States and in immediately
available funds, together with interest on the unpaid principal balance of
this Convertible Line of Credit Promissory Note ("Note") computed on the basis
of a 360 day year and charged on actual days the principal amount of any
Advance is outstanding, at the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

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<PAGE>

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $125,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by the
              Lender to preferred stock is $165,000.  Provided, however, the
              Lender acknowledges that the Borrower does not currently have
              preferred stock authorized by its Articles of Incorporation, but
              that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of conversion is subject to such approval by
              the Borrower's shareholders.  The number of preferred shares and
              the per share price is to be determined by the Borrower and
              ratified by the Borrower shareholders.

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the
              event, at any time after the date hereof, the holders of the
              common stock of the Borrower shall have received, or, on or
              after the record date fixed for the determination of eligible
              stockholders, shall have become entitled to receive, without
              payment therefore, other or additional stock or other securities
              or property by way of stock-split, spinoff, reclassification,
              combination of shares or similar corporate rearrangement, then
              and in each such case the Lender, upon the exercise hereof as
              provided herein, shall be entitled to receive the amount of
              stock and other securities and property which the Lender would
              hold on the date of such exercise if on record date of such
              corporate reclassification Lender had been the holder of record
              of the number of shares of common stock of the Borrower called
              for in the event of complete conversion of the Note and had
              thereafter retained such shares and/or all other or additional
              stock and other securities and property receivable by Lender as
              aforesaid during such period, giving effect to all adjustments
              called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in
              case, after such date, the Borrower shall consolidate with or
              merge into another corporation or convey all or substantially
              all of its assets to another corporation, then and in each such
              case the Lender, upon the exercise of its conversion rights at
              any time after the consummation of such

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<PAGE>

              reorganization, consolidation, merger or conveyance, shall be
              entitled to receive, in lieu of the stock or other securities
              and property receivable upon the conversion of this Note prior
              to such consummation, the stock or other securities or property
              to which Lender would be entitled had the Lender converted this
              Note immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public
              offering of such equity securities solely for cash, on a
              registration form that would also permit the registration of the
              shares of common stock or preferred stock issuable upon
              conversion of this Note, the Borrower shall promptly give the
              Lender written notice of such proposal.  Within thirty days
              after the notice is given, the Lender shall give notice as to
              the number of shares of common stock or preferred stock, if any,
              which the Lender requests be registered simultaneously with such
              registration by the Borrower. The Borrower shall use its best
              efforts to include such shares in such registration statement
              and to cause such registration statement to become effective
              with respect to such shares.  All costs in connection such
              registration statement shall be borne by the Borrower.  The
              Lender shall bear all underwriting discounts, selling
              commissions, sales concessions and similar expenses applicable
              to the sale of the Lender's common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower

                                       77

<PAGE>

shareholders if consent of shareholders is required, fails to approve or
ratify all of the terms of this Note, or if the Borrower otherwise defaults
under the terms of this Note or the Security Agreement, then the holder
hereof, following the giving of 10 days written notice may accelerate this
Note and declare the entire balance due and owing whereupon the Borrower
agrees to pay the entire balance of the Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.   Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance, default or enforcement of this Note
and each agrees that the holder, from time to time, may renew, modify or
extend performance of obligations hereunder without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                      78

<PAGE>

                                              /s/ J. Michael Heil, CEO
                                          -----------------------------------
                                          By

                                 SECURITY AGREEMENT

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Chelsea International Limited

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

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<PAGE>

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment, levy, or other seizure by legal
process or otherwise of any or all Collateral, (ii) any lien or encumbrance or
claim thereof on any or all Collateral, (iii) any attempt to realize upon any
or all Collateral under any lien or encumbrance, regardless of whether junior
or senior to the Security Interest herein, and (iv) any claim questioning the
legality, validity, binding nature, enforceability, perfection, or priority of
the Security Interest herein.  Obligor shall notify Secured Party immediately
in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

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<PAGE>

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2   If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the  Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                          "Obligor"

                                     81

<PAGE>

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $270,000.00                                          Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the "Borrower") promises to pay to Giai Limited
(referred to herein as the "Lender"), or order, at the  address the Lender
shall designate in writing to the Borrower from time to time, the sum of Two
Hundred Seventy Thousand dollars ($270,000) or the aggregate unpaid principal
balance of all advances made to the Borrower by the Lender pursuant to this
Note from time to time ("Advances") on April 1, 2001 ("Maturity Date") in
lawful money of the United States and in immediately available funds, together
with interest on the unpaid principal balance of this Convertible Line of
Credit Promissory Note ("Note") computed on the basis of a 360 day year and
charged on actual days the principal amount of any Advance  is outstanding, at
the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

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<PAGE>

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $115,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by the
              Lender to preferred stock is $155,000.  Provided, however, the
              Lender acknowledges that the Borrower does not currently have
              preferred stock authorized by its Articles of Incorporation, but
              that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of conversion is subject to such approval by
              the Borrower's shareholders.  The number of preferred shares and
              the per share price is to be determined by the Borrower and
              ratified by the Borrower shareholders.

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the event,
              at any time after the date hereof, the holders of the common
              stock of the Borrower shall have received, or, on or after the
              record date fixed for the determination of eligible stockholders,
              shall have become entitled to receive, without payment therefore,
              other or additional stock or other securities or property by way
              of stock-split, spinoff, reclassification, combination of shares
              or similar corporate rearrangement, then and in each such case
              the Lender, upon the exercise hereof as provided herein, shall be
              entitled to receive the amount of stock and other securities and
              property which the Lender would hold on the date of such exercise
              if on record date of such corporate reclassification Lender had
              been the holder of record of the number of shares of common stock
              of the Borrower called for in the event of complete conversion of
              the Note and had thereafter retained such shares and/or all other
              or additional stock and other securities and property receivable
              by Lender as aforesaid during such period, giving effect to all
              adjustments called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in case,
              after such date, the Borrower shall consolidate with or merge
              into another corporation or convey all or substantially all of
              its assets to another corporation, then and in each such case
              the Lender, upon the exercise of its conversion rights at any
              time after the consummation of such

                                     83

<PAGE>

              reorganization, consolidation,merger or conveyance, shall be
              entitled to receive, in lieu of the stock or other securities
              and property receivable upon the conversion of this Note prior
              to such consummation, the stock or other securities or property
              to which Lender would be entitled had the Lender converted this
              Note immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public offering
              of such equity securities solely for cash, on a registration form
              that would also permit the registration of the shares of common
              stock or preferred stock issuable upon conversion of this Note,
              the Borrower shall promptly give the Lender written notice of
              such proposal.  Within thirty days after the notice is given, the
              Lender shall give notice as to the number of shares of common
              stock or preferred stock, if any, which the Lender requests be
              registered simultaneously with such registration by the Borrower.
              The Borrower shall use its best efforts to include such shares in
              such registration statement and to cause such registration
              statement to become effective with respect to such shares.  All
              costs in connection such registration statement shall be borne by
              the Borrower.  The Lender shall bear all underwriting discounts,
              selling commissions, sales concessions and similar expenses
              applicable to the sale of the Lender's common stock or preferred
              stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower

                                     84

<PAGE>

shareholders if consent of shareholders is required, fails to approve or
ratify all of the terms of this Note, or if the Borrower otherwise defaults
under the terms of this Note or the Security Agreement, then the holder
hereof, following the giving of 10 days written notice may accelerate this
Note and declare the entire balance due and owing whereupon the Borrower
agrees to pay the entire balance of the Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.  Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance, default or enforcement of this Note
and each agrees that the holder, from time to time, may renew, modify or
extend performance of obligations hereunder without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------

                                     85

<PAGE>

                                          By

                                 SECURITY AGREEMENT

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Giai Limited

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

                                     86

<PAGE>

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until  the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment, levy, or other seizure by legal process
or otherwise of any or all Collateral, (ii) any lien or encumbrance or claim
thereof on any or all Collateral, (iii) any attempt to realize upon any or all
Collateral under any lien or encumbrance, regardless of whether junior or
senior to the Security Interest herein, and (iv) any claim questioning the
legality, validity, binding nature, enforceability, perfection, or priority of
the Security Interest herein.  Obligor shall notify Secured Party immediately
in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating  to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

                                     87

<PAGE>

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the  Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2 If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                          "Obligor"

                                     88

<PAGE>

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $165,000.00                                          Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the"Borrower") promises to pay to Global Direct
Marketing Limited (referred to herein as the "Lender"), or order, at the
address the Lender shall designate in writing to the Borrower from time to
time, the sum of One Hundred Sixty Five Thousand dollars ($165,000) or the
aggregate unpaid principal balance of all advances made to the Borrower by the
Lender pursuant to this Note from time to time ("Advances") on April 1, 2001
("Maturity Date") in lawful money of the United States and in immediately
available funds, together with interest on the unpaid principal balance of
this Convertible Line of Credit Promissory Note ("Note") computed on the basis
of a 360 day year and charged on actual days the principal amount of any
Advance is outstanding, at the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

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              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $72,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by the
              Lender to preferred stock is $93,000.  Provided, however, the
              Lender acknowledges that the Borrower does not currently have
              preferred stock authorized by its Articles of Incorporation, but
              that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of conversion is subject to such approval by
              the Borrower's shareholders.  The number of preferred shares and
              the per share price is to be determined by the Borrower and
              ratified by the Borrower shareholders.

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the
              event, at any time after the date hereof, the holders of the
              common stock of the Borrower shall have received, or, on or
              after the record date fixed for the determination of eligible
              stockholders, shall have become entitled to receive, without
              payment therefore, other or additional stock or other securities
              or property by way of stock-split, spinoff, reclassification,
              combination of shares or similar corporate rearrangement, then
              and in each such case the Lender, upon the exercise hereof as
              provided herein, shall be entitled to receive the amount of
              stock and other securities and property which the Lender would
              hold on the date of such exercise if on record date of such
              corporate reclassification Lender had been the holder of record
              of the number of shares of common stock of the Borrower called
              for in the event of complete conversion of the Note and had
              thereafter retained such shares and/or all other or additional
              stock and other securities and property receivable by Lender as
              aforesaid during such period, giving effect to all adjustments
              called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in case,
              after such date, the Borrower shall consolidate with or merge
              into another corporation or convey all or substantially all of
              its assets to another corporation, then and in each such case the
              Lender, upon the exercise of its conversion rights at any time
              after the consummation of such reorganization, consolidation,
              merger or conveyance, shall be entitled to receive, in lieu of
              the stock or other securities and property receivable upon the
              conversion of this Note prior to such consummation, the stock or
              other securities or property to which Lender would be entitled
              had the Lender converted this Note immediately prior thereto.

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<PAGE>

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public
              offering of such equity securities solely for cash, on a
              registration form that would also permit the registration of the
              shares of common stock or preferred stock issuable upon
              conversion of this Note, the Borrower shall promptly give the
              Lender written notice of such proposal.  Within thirty days
              after the notice is given, the Lender shall give notice as to
              the number of shares of common stock or preferred stock, if any,
              which the Lender requests be registered simultaneously with such
              registration by the Borrower. The Borrower shall use its best
              efforts to include such shares in such registration statement
              and to cause such registration statement to become effective
              with respect to such shares.  All costs in connection such
              registration statement shall be borne by the Borrower.  The
              Lender shall bear all underwriting discounts, selling
              commissions, sales concessions and similar expenses applicable
              to the sale of the Lender's common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower shareholders if consent of
shareholders is required, fails to approve or ratify all of the terms of this
Note, or if the Borrower otherwise defaults under the terms of this Note or
the Security Agreement, then the holder hereof, following the giving of 10
days written notice may accelerate this Note and

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declare the entire balance due and owing whereupon the Borrower agrees to pay
the entire balance of the Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.   Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance, default or enforcement of this Note
and each agrees that the holder, from time to time, may renew, modify or
extend performance of obligations hereunder without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                              /s/ J. Michael Heil, CEO
                                          -------------------------------
                                          By

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                                 SECURITY AGREEMENT

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Global Direct Marketing Limited

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.   There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i)

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genuine, (ii) the legal, valid and binding obligations of the parties thereto,
and (iii) enforceable against the parties thereto in accordance with their
terms.  Any copies of such agreements, documents, and instruments delivered to
Secured Party are accurate and complete and, except for the items delivered
to Secured Party there are no amendments, modifications, extensions, renewals,
restatements, or supplements thereof.  No surety bond was required or given by
Obligor in connection with or is otherwise applicable to (1) any goods, or
other tangible personal property, or services relating to the Receivables, or
(2) the agreements, documents, or instruments out of which the Receivables
arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment, levy, or other seizure by legal
process or otherwise of any or all Collateral, (ii) any lien or encumbrance or
claim thereof on any or all Collateral, (iii) any attempt to realize upon any
or all Collateral under any lien or encumbrance, regardless of whether junior
or senior to the Security Interest herein, and (iv) any claim questioning the
legality, validity, binding nature, enforceability, perfection, or priority of
the Security Interest herein.  Obligor shall notify Secured Party immediately
in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect,

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<PAGE>

preserve, and protect the security interest granted herein, the priority
thereof, and the rights and remedies of Secured Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2   If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                                 "Obligor"

                                                 CHEQUEMATE INTERNATIONAL, INC.

                                      95

<PAGE>

                                                    /s/ J. Michael Heil, CEO
                                                 ------------------------------
                                                 By

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $210,000.00                                     Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the "Borrower") promises to pay to Lotus Services
Limited (referred to herein as the "Lender"), or order, at the address the
Lender shall designate in writing to the Borrower from time to time, the sum
of Two Hundred Ten Thousand dollars ($210,000) or the aggregate unpaid
principal balance of all advances made to the Borrower by the Lender  pursuant
to this Note from time to time ("Advances") on April 1, 2001 ("Maturity
Date") in lawful money of the United States and in immediately available
funds, together with interest on the unpaid principal balance of this
Convertible Line of Credit Promissory Note ("Note") computed on the basis of a
360 day year and charged on actual days the principal amount of any Advance
is outstanding, at the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

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<PAGE>

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $91,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by
              the Lender to preferred stock is $119,000.  Provided, however,
              the Lender acknowledges that the Borrower does not currently
              have preferred stock authorized by its Articles of
              Incorporation, but that it is the intention of the Borrower to
              submit to its shareholders resolutions authorizing the issuance
              of preferred stock and this right of conversion is subject to
              such approval by the Borrower's shareholders.  The number of
              preferred shares and the per share price is to be determined by
              the Borrower and ratified by the Borrower shareholders.

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance  to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the
              event, at any time after the date hereof, the holders of the
              common stock of the Borrower shall have received, or, on or
              after the record date fixed for the determination of eligible
              stockholders, shall have become entitled to receive, without
              payment therefore, other or additional stock or other securities
              or property by way of stock-split, spinoff, reclassification,
              combination of shares or similar corporate rearrangement, then
              and in each such case the Lender, upon the exercise hereof as
              provided herein, shall be entitled to receive the amount of
              stock and other securities and property which the Lender would
              hold on the date of such exercise if on record date of such
              corporate reclassification Lender had been the holder of record
              of the number of shares of common stock of the Borrower called
              for in the event of complete conversion of the Note and had
              thereafter retained such shares and/or all other or additional
              stock and other securities and property receivable by Lender as
              aforesaid during such period, giving effect to all adjustments
              called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in
              case, after such date, the Borrower shall consolidate with or
              merge into another corporation or convey all or substantially
              all of its assets to another corporation, then and in each such
              case the Lender, upon the exercise of its conversion rights at
              any time after the consummation of such reorganization,
              consolidation, merger or conveyance, shall be entitled to
              receive, in lieu of the stock or other securities and property
              receivable upon the conversion of this Note prior to such
              consummation, the stock or other securities or property to which
              Lender would be entitled had the Lender converted this Note
              immediately prior thereto.

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<PAGE>

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public
              offering of such equity securities solely for cash, on a
              registration form that would also permit the registration of the
              shares of common stock or preferred stock issuable upon
              conversion of this Note, the Borrower shall promptly give the
              Lender written notice of such proposal.  Within thirty days
              after the notice is given, the Lender shall give notice as to
              the number of shares of common stock or preferred stock, if any,
              which the Lender requests be registered simultaneously with such
              registration by the Borrower. The Borrower shall use its best
              efforts to include such shares in such registration statement
              and to cause such registration statement to become effective
              with respect to such shares.  All costs in connection such
              registration statement shall be borne by the Borrower.  The
              Lender shall bear all underwriting discounts, selling
              commissions, sales concessions and similar expenses applicable
              to the sale of the Lender's common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower shareholders if consent of
shareholders is required, fails to approve or ratify all of the terms of this
Note, or if the Borrower otherwise defaults under the terms of this Note or
the Security Agreement, then the holder hereof, following the giving of 10
days written notice may accelerate this Note and

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<PAGE>

declare the entire balance due and owing whereupon the Borrower agrees to pay
the entire balance of the Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal. In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.  Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance, default or enforcement of this Note
and each agrees that the holder, from time to time, may renew, modify or
extend performance of obligations hereunder without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                               /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

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<PAGE>

                                 SECURITY AGREEMENT

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Lotus Services Limited

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and

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<PAGE>

instruments delivered to Secured Party are accurate and complete and, except
for the items delivered to Secured Party there are no amendments,
modifications, extensions, renewals, restatements, or supplements thereof.  No
surety bond was required or given by Obligor in connection with or is
otherwise applicable to (1) any goods, or other tangible personal property, or
services relating to the Receivables, or (2) the agreements, documents, or
instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment, levy, or other seizure by legal process
or otherwise of any or all Collateral, (ii) any lien or encumbrance or claim
thereof on any or all Collateral, (iii) any attempt to realize upon any or all
Collateral under any lien or encumbrance, regardless of whether junior or
senior to the Security Interest herein, and (iv) any claim questioning the
legality, validity, binding nature, enforceability, perfection, or priority of
the Security Interest herein.  Obligor shall notify Secured Party immediately
in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

                                     101

<PAGE>

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the  Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2   If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                          "Obligor"

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

                                     102

<PAGE>

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $240,000.00                                          Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the "Borrower") promises to pay to Networld Limited
(referred to herein as the "Lender"), or order, at the address the Lender
shall designate in writing to the Borrower from time to time, the sum of Two
Hundred Forty Thousand dollars ($240,000) or the aggregate unpaid principal
balance of all advances made to the Borrower by the Lender  pursuant to this
Note from time to time ("Advances") on April 1, 2001 ("Maturity Date") in
lawful money of the United States and in immediately available funds, together
with interest on the unpaid principal balance of this Convertible Line of
Credit Promissory Note ("Note") computed on the basis of a 360 day year and
charged on actual days the principal amount of any Advance is outstanding, at
the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

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<PAGE>

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $105,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by the
              Lender to preferred stock is $135,000.  Provided, however, the
              Lender acknowledges that the Borrower does not currently have
              preferred stock authorized by its Articles of Incorporation, but
              that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of conversion is subject to such approval by
              the Borrower's shareholders.  The number of preferred shares and
              the per share price is to be determined by the Borrower and
              ratified by the Borrower shareholders.

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the event,
              at any time after the date hereof, the holders of the common
              stock of the Borrower shall have received, or, on or after the
              record date fixed for the determination of eligible stockholders,
              shall have become entitled to receive, without payment therefore,
              other or additional stock or other securities or property by way
              of stock-split, spinoff, reclassification, combination of shares
              or similar corporate rearrangement, then and in each such case
              the Lender, upon the exercise hereof as provided herein, shall be
              entitled to receive the amount of stock and other securities and
              property which the Lender would hold on the date of such exercise
              if on record date of such corporate reclassification Lender had
              been the holder of record of the number of shares of common stock
              of the Borrower called for in the event of complete conversion of
              the Note and had thereafter retained such shares and/or all other
              or additional stock and other securities and property receivable
              by Lender as aforesaid during such period, giving effect to all
              adjustments called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in case,
              after such date, the Borrower shall consolidate with or merge
              into another corporation or convey all or substantially all of
              its assets to another corporation, then and in each such case
              the Lender, upon the exercise of its conversion rights at any
              time after the consummation of such reorganization,
              consolidation, merger or conveyance, shall be entitled to
              receive, in lieu of the stock or other securities and property
              receivable upon the conversion of this Note prior to such
              consummation, the stock or other securities or property to which
              Lender would be entitled had the Lender converted this Note
              immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the

                                     104

<PAGE>

              account of others, in connection with the public offering of such
              equity securities solely for cash, on a registration form that
              would also permit the registration of the shares of common stock
              or preferred stock issuable upon conversion of this Note, the
              Borrower shall promptly give the Lender written notice of such
              proposal.  Within thirty days after the notice is given, the
              Lender shall give notice as to the number of shares of common
              stock or preferred stock, if any, which the Lender requests be
              registered simultaneously with such registration by the
              Borrower. The Borrower shall use its best efforts to include
              such shares in such registration statement and to cause such
              registration statement to become effective with respect to such
              shares.  All costs in connection such registration statement
              shall be borne by the Borrower.  The Lender shall bear all
              underwriting discounts, selling commissions, sales concessions
              and similar expenses applicable to the sale of the Lender's
              common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower shareholders if consent of
shareholders is required, fails to approve or ratify all of the terms of this
Note, or if the Borrower otherwise defaults under the terms of this Note or
the Security Agreement, then the holder hereof, following the giving of 10
days written notice may accelerate this Note and declare the entire balance
due and owing whereupon the Borrower agrees to pay the entire balance of the
Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal

                                     105

<PAGE>

in the event of default, the Borrower agrees to pay all expenses of collection
of this Note, including reasonable attorney's fees and court costs incurred in
any proceeding including any proceedings in the United States Bankruptcy
Court.  After acceleration, in the event of default, and after the due date
and before and after judgment, this Note shall accrue interest until paid at
the highest legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.   Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance, default or enforcement of this Note
and each agrees that the holder, from time to time, may renew, modify or
extend performance of obligations hereunder without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

                                     106

<PAGE>

                                SECURITY AGREEMENT

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Networld Limited

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

                                     107

<PAGE>

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment, levy, or other seizure by legal process
or otherwise of any or all Collateral, (ii) any lien or encumbrance or claim
thereof on any or all Collateral, (iii) any attempt to realize upon any or all
Collateral under any lien or encumbrance, regardless of whether junior or
senior to the Security Interest herein, and (iv) any claim questioning the
legality, validity, binding nature, enforceability, perfection, or priority of
the Security Interest herein.  Obligor shall notify Secured Party immediately
in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

                                     108

<PAGE>

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2   If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                          "Obligor"

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

                                     109

<PAGE>

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $300,000.00                                     Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the "Borrower") promises to pay to Silverbrook
Corporation (referred to herein as the "Lender"), or order, at the address
the Lender shall designate in writing to the Borrower from time to time, the
sum of Three Hundred Thousand dollars ($300,000) or the aggregate unpaid
principal balance of all advances made to the Borrower by the Lender pursuant
to this Note from time to time ("Advances") on April 1, 2001 ("Maturity
Date") in lawful money of the United States and in immediately available
funds, together with interest on the unpaid principal balance of this
Convertible Line of Credit Promissory Note ("Note") computed on the basis of a
360 day year and charged on actual days the principal amount of any Advance
is outstanding, at the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $130,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by
              the Lender to preferred stock is $170,000.  Provided, however,
              the Lender acknowledges that the Borrower does not currently
              have preferred stock authorized by its Articles of Incorporation,
              but that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of

                                      110

<PAGE>

              conversion is subject to such approval by the Borrower's
              shareholders.  The number of preferred shares and the per share
              price is to be determined by the Borrower and ratified by the
              Borrower shareholders.

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the event,
              at any time after the date hereof, the holders of the common
              stock of the Borrower shall have received, or, on or after the
              record date fixed for the determination of eligible
              stockholders, shall have become entitled to receive, without
              payment therefore, other or additional stock or other securities
              or property by way of stock-split, spinoff, reclassification,
              combination of shares or similar corporate rearrangement, then
              and in each such case the Lender, upon the exercise hereof as
              provided herein, shall be entitled to receive the amount of
              stock and other securities and property which the Lender would
              hold on the date of such exercise if on record date of such
              corporate reclassification Lender had been the holder of record
              of the number of shares of common stock of the Borrower called
              for in the event of complete conversion of the Note and had
              thereafter retained such shares and/or all other or additional
              stock and other securities and property receivable by Lender as
              aforesaid during such period, giving effect to all adjustments
              called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in
              case, after such date, the Borrower shall consolidate with or
              merge into another corporation or convey all or substantially
              all of its assets to another corporation, then and in each such
              case the Lender, upon the exercise of its conversion rights at
              any time after the consummation of such reorganization,
              consolidation, merger or conveyance, shall be entitled to
              receive, in lieu of the stock or other securities and property
              receivable upon the conversion of this Note prior to such
              consummation, the stock or other securities or property to which
              Lender would be entitled had the Lender converted this Note
              immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public
              offering of such equity securities solely for cash, on a
              registration form that would also permit the registration of the
              shares of common stock or preferred stock issuable upon
              conversion of this Note, the Borrower shall promptly give the
              Lender written notice of such proposal.  Within thirty days
              after the notice is given, the Lender shall give notice as to
              the number of shares of common stock or preferred stock, if any,
              which the Lender requests be registered simultaneously with such
              registration by the Borrower. The Borrower shall use its best
              efforts to

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              include such shares in such registration statement and to cause
              such registration statement to become effective with respect to
              such shares.  All costs in connection such registration
              statement shall be borne by the Borrower.  The Lender shall bear
              all underwriting discounts, selling commissions, sales
              concessions and similar expenses applicable to the sale of the
              Lender's common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower shareholders if consent of
shareholders is required, fails to approve or ratify all of the terms of this
Note, or if the Borrower otherwise defaults under the terms of this Note or
the Security Agreement, then the holder hereof, following the giving of 10
days written notice may accelerate this Note and declare the entire balance
due and owing whereupon the Borrower agrees to pay the entire balance of the
Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

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       8.  WAIVER OF NOTICE, ETC.  Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance, default or enforcement of this Note
and each agrees that the holder, from time to time, may renew, modify or
extend performance of obligations hereunder without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                              /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

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                                 SECURITY AGREEMENT

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Silverbrook Corporation

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality,

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<PAGE>

validity, binding nature, and enforceability of the Security Interest granted
herein, the perfection thereof, and the first priority thereof against all
matters, including, without limitation, (i) any attachment, levy, or other
seizure by legal process or otherwise of any or all Collateral, (ii) any lien
or encumbrance or claim thereof on any or all Collateral, (iii) any attempt to
realize upon any or all Collateral under any lien or encumbrance, regardless
of whether junior or senior to the Security Interest herein, and (iv) any
claim questioning the legality, validity, binding nature, enforceability,
perfection, or priority of the Security Interest herein.  Obligor shall notify
Secured Party immediately in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating  to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

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       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note  to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2 If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until  payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                                 "Obligor"

                                                 CHEQUEMATE INTERNATIONAL, INC.

                                                     /s/ J. Michael Heil, CEO
                                                 ------------------------------
                                                 By

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<PAGE>

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $255,000.00                                     Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the "Borrower") promises to pay to Southstar Agents
Limited (referred to herein as the "Lender"), or order, at the address the
Lender shall designate in writing to the Borrower from time to time, the sum
of Two Hundred Fifty Five Thousand dollars ($255,000) or the aggregate unpaid
principal balance of all advances made to the Borrower by the Lender pursuant
to this Note from time to time ("Advances") on April 1, 2001 ("Maturity Date")
in lawful money of the United States and in immediately available funds,
together with interest on the unpaid principal balance of this Convertible
Line of Credit Promissory Note ("Note") computed on the basis of a 360 day
year and charged on actual days the principal amount of any Advance is
outstanding, at the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $110,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by
              the Lender to preferred stock is $145,000.  Provided, however,
              the Lender acknowledges that the Borrower does not currently
              have preferred stock authorized by its Articles of Incorporation,
              but that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of conversion is subject to such approval
              by the Borrower's shareholders.  The number of preferred shares
              and the per share price is to be determined by the Borrower and
              ratified by the Borrower shareholders.

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<PAGE>

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the
              event, at any time after the date hereof, the holders of the
              common stock of the Borrower shall have received, or, on or
              after the record date fixed for the determination of eligible
              stockholders, shall have become entitled to receive, without
              payment therefore, other or additional stock or other securities
              or property by way of stock-split, spinoff, reclassification,
              combination of shares or similar corporate rearrangement, then
              and in each such case the Lender, upon the exercise hereof as
              provided herein, shall be entitled to receive the amount of
              stock and other securities and property which the Lender would
              hold on the date of such exercise if on record date of such
              corporate reclassification Lender had been the holder of record
              of the number of shares of common stock of the Borrower called
              for in the event of complete conversion of the Note and had
              thereafter retained such shares and/or all other or additional
              stock and other securities and property receivable by Lender as
              aforesaid during such period, giving effect to all adjustments
              called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in
              case, after such date, the Borrower shall consolidate with or
              merge into another corporation or convey all or substantially
              all of its assets to another corporation, then and in each such
              case the Lender, upon the exercise of its conversion rights at
              any time after the consummation of such reorganization,
              consolidation, merger or conveyance, shall be entitled to
              receive, in lieu of the stock or other securities and property
              receivable upon the conversion of this Note prior to such
              consummation, the stock or other securities or property to which
              Lender would be entitled had the Lender converted this Note
              immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public
              offering of such equity securities solely for cash, on a
              registration form that would also permit the registration of the
              shares of common stock or preferred stock issuable upon
              conversion of this Note, the Borrower shall promptly give the
              Lender written notice of such proposal.  Within thirty days
              after the notice is given, the Lender shall give notice as to
              the number of shares of common stock or preferred stock, if any,
              which the Lender requests be registered simultaneously with such
              registration by the Borrower. The Borrower shall use its best
              efforts to include such shares in such registration statement
              and to cause such registration statement to become effective
              with respect to such shares.  All costs in connection such
              registration statement shall be borne by the Borrower.  The
              Lender shall bear all

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<PAGE>

              underwriting discounts, selling commissions, sales concessions
              and similar expenses applicable to the sale of the Lender's
              common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower shareholders if consent of
shareholders is required, fails to approve or ratify all of the terms of this
Note, or if the Borrower otherwise defaults under the terms of this Note or
the Security Agreement, then the holder hereof, following the giving of 10
days written notice may accelerate this Note and declare the entire balance
due and owing whereupon the Borrower agrees to pay the entire balance of the
Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.  Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance,

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default or enforcement of this Note and each agrees that the holder, from time
to time, may renew, modify or extend performance of obligations hereunder
without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

                                 SECURITY AGREEMENT

                                        120

<PAGE>

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Southstar Agents Limited

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment,

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<PAGE>

levy, or other seizure by legal process or otherwise of any or all Collateral,
(ii) any lien or encumbrance or claim thereof on any or all Collateral, (iii)
any attempt to realize upon any or all Collateral under any lien or
encumbrance, regardless of whether junior or senior to the Security Interest
herein, and (iv) any claim questioning the legality, validity, binding nature,
enforceability, perfection, or priority of the Security Interest herein.
Obligor shall notify Secured Party immediately in writing of any of the
foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating  to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

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       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2   If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                          "Obligor"

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

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                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $300,000.00                                          Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the "Borrower") promises to pay to Terrano Investments
Limited (referred to herein as the "Lender"), or order, at the address the
Lender shall designate in writing to the Borrower from time to time, the sum
of Three Hundred Thousand dollars ($300,000) or the aggregate unpaid principal
balance of all advances made to the Borrower by the Lender  pursuant to this
Note from time to time ("Advances") on April 1, 2001 ("Maturity Date") in
lawful money of the United States and in immediately available funds, together
with interest on the unpaid principal balance of this Convertible Line of
Credit Promissory Note ("Note") computed on the basis of a 360 day year and
charged on actual days the principal amount of any Advance is outstanding, at
the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $130,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by the
              Lender to preferred stock is $170,000.  Provided, however, the
              Lender acknowledges that the Borrower does not currently have
              preferred stock authorized by its Articles of Incorporation, but
              that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of conversion is subject to such approval by
              the Borrower's shareholders.  The number of preferred shares and
              the per share price is to be determined by the Borrower and
              ratified by the Borrower shareholders.

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              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the event,
              at any time after the date hereof, the holders of the common
              stock of the Borrower shall have received, or, on or after the
              record date fixed for the determination of eligible stockholders,
              shall have become entitled to receive, without payment therefore,
              other or additional stock or other securities or property by way
              of stock-split, spinoff, reclassification, combination of shares
              or similar corporate rearrangement, then and in each such case
              the Lender, upon the exercise hereof as provided herein, shall be
              entitled to receive the amount of stock and other securities and
              property which the Lender would hold on the date of such exercise
              if on record date of such corporate reclassification Lender had
              been the holder of record of the number of shares of common stock
              of the Borrower called for in the event of complete conversion of
              the Note and had thereafter retained such shares and/or all other
              or additional stock and other securities and property receivable
              by Lender as aforesaid during such period, giving effect to all
              adjustments called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in case,
              after such date, the Borrower shall consolidate with or merge
              into another corporation or convey all or substantially all of
              its assets to another corporation, then and in each such case
              the Lender, upon the exercise of its conversion rights at any
              time after the consummation of such reorganization,
              consolidation, merger or conveyance, shall be entitled to
              receive, in lieu of the stock or other securities and property
              receivable upon the conversion of this Note prior to such
              consummation, the stock or other securities or property to which
              Lender would be entitled had the Lender converted this Note
              immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public offering
              of such equity securities solely for cash, on a registration form
              that would also permit the registration of the shares of common
              stock or preferred stock issuable upon conversion of this Note,
              the Borrower shall promptly give the Lender written notice of
              such proposal.  Within thirty days after the notice is given, the
              Lender shall give notice as to the number of shares of common
              stock or preferred stock, if any, which the Lender requests be
              registered simultaneously with such registration by the Borrower.
              The Borrower shall use its best efforts to include such shares in
              such registration statement and to cause such registration
              statement to become effective with respect to such shares.  All
              costs in connection such registration statement shall be borne by
              the Borrower.  The Lender shall bear all

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<PAGE>

              underwriting discounts, selling commissions, sales concessions
              and similar expenses applicable to the sale of the Lender's
              common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower shareholders if consent of
shareholders is required, fails to approve or ratify all of the terms of this
Note, or if the Borrower otherwise defaults under the terms of this Note or
the Security Agreement, then the holder hereof, following the giving of 10
days written notice may accelerate this Note and declare the entire balance
due and owing whereupon the Borrower agrees to pay the entire balance of the
Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.   Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance,

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<PAGE>

default or enforcement of this Note and each agrees that the holder, from time
to time, may renew, modify or extend performance of obligations hereunder
without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

                                 SECURITY AGREEMENT

                                        127

<PAGE>

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Terrano Investments Limited

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection

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<PAGE>

thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment, levy, or other seizure by legal process
or otherwise of any or all Collateral, (ii) any lien or encumbrance or claim
thereof on any or all Collateral, (iii) any attempt to realize upon any or all
Collateral under any lien or encumbrance, regardless of whether junior or
senior to the Security Interest herein, and (iv) any claim questioning the
legality, validity, binding nature, enforceability, perfection, or priority of
the Security Interest herein.  Obligor shall notify Secured Party immediately
in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the  Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

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<PAGE>

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2   If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                          "Obligor"

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

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<PAGE>

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $260,000.00                                          Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the "Borrower") promises to pay to Touchstone Property
Services, Inc. (referred to herein as the "Lender"), or order, at the address
the Lender shall designate in writing to the Borrower from time to time, the
sum of Two Hundred Sixty Thousand dollars ($260,000) or the aggregate unpaid
principal balance of all advances made to the Borrower by the Lender pursuant
to this Note from time to time ("Advances") on April 1, 2001 ("Maturity
Date") in lawful money of the United States and in immediately available
funds, together with interest on the unpaid principal balance of this
Convertible Line of Credit Promissory Note ("Note") computed on the basis of a
360 day year and charged on actual days the principal amount of any Advance
is outstanding, at the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $115,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by
              the Lender to preferred stock is $145,000.  Provided, however,
              the Lender acknowledges that the Borrower does not currently
              have preferred stock authorized by its Articles of
              Incorporation, but that it is the intention of the Borrower to
              submit to its shareholders resolutions authorizing the issuance
              of preferred stock and this right of conversion is subject to
              such approval by the Borrower's shareholders.  The number of
              preferred shares and the per share price is to be determined by
              the Borrower and ratified by the Borrower shareholders.

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<PAGE>

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the event,
              at any time after the date hereof, the holders of the common
              stock of the Borrower shall have received, or, on or after the
              record date fixed for the determination of eligible stockholders,
              shall have become entitled to receive, without payment therefore,
              other or additional stock or other securities or property by way
              of stock-split, spinoff, reclassification, combination of shares
              or similar corporate rearrangement, then and in each such case
              the Lender, upon the exercise hereof as provided herein, shall be
              entitled to receive the amount of stock and other securities and
              property which the Lender would hold on the date of such exercise
              if on record date of such corporate reclassification Lender had
              been the holder of record of the number of shares of common stock
              of the Borrower called for in the event of complete conversion of
              the Note and had thereafter retained such shares and/or all other
              or additional stock and other securities and property receivable
              by Lender as aforesaid during such period, giving effect to all
              adjustments called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in case,
              after such date, the Borrower shall consolidate with or merge
              into another corporation or convey all or substantially all of
              its assets to another corporation, then and in each such case
              the Lender, upon the exercise of its conversion rights at any
              time after the consummation of such reorganization,
              consolidation, merger or conveyance, shall be entitled to
              receive, in lieu of the stock or other securities and property
              receivable upon the conversion of this Note prior to such
              consummation, the stock or other securities or property to which
              Lender would be entitled had the Lender converted this Note
              immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public offering
              of such equity securities solely for cash, on a registration form
              that would also permit the registration of the shares of common
              stock or preferred stock issuable upon conversion of this Note,
              the Borrower shall promptly give the Lender written notice of
              such proposal.  Within thirty days after the notice is given,
              the Lender shall give notice as to the number of shares of
              common stock or preferred stock, if any, which the Lender
              requests be registered simultaneously with such registration by
              the Borrower.  The Borrower shall use its best efforts to include
              such shares in such registration statement and to cause such
              registration statement to become effective with respect to such
              shares.  All costs in connection such registration statement
              shall be borne by the Borrower.  The Lender shall bear all

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<PAGE>

              underwriting discounts, selling commissions, sales concessions
              and similar expenses applicable to the sale of the Lender's
              common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower shareholders if consent of
shareholders is required, fails to approve or ratify all of the terms of this
Note, or if the Borrower otherwise defaults under the terms of this Note or
the Security Agreement, then the holder hereof, following the giving of 10
days written notice may accelerate this Note and declare the entire balance
due and owing whereupon the Borrower agrees to pay the entire balance of the
Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.   Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance,

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<PAGE>

default or enforcement of this Note and each agrees that the holder, from time
to time, may renew, modify or extend performance of obligations hereunder
without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

                                 SECURITY AGREEMENT

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<PAGE>

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: Touchstone Property Services, Inc.

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment,

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levy, or other seizure by legal process or otherwise of any or all Collateral,
(ii) any lien or encumbrance or claim thereof on any or all Collateral, (iii)
any attempt to realize upon any or all Collateral under any lien or
encumbrance, regardless of whether junior or senior to the Security Interest
herein, and (iv) any claim questioning the legality, validity, binding nature,
enforceability, perfection, or priority of the Security Interest herein.
Obligor shall notify Secured Party immediately in writing of any of the
foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the  Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

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<PAGE>

       6.1 Acceleration of Obligations.  Declare any or all obligations under
the Note to be immediately due and payable, whereupon such Obligations shall
be immediately due and payable.

       6.2   If Secured Party demands or attempts to take possession of any or
all collateral, Obligor shall promptly assemble such Collateral and turn over
and deliver possession of such Collateral to Secured Party at a place
designated by Secured Party and convenient to Secured party and Obligor.

       6.3 Retain the Collateral as Payment.  Upon written notice to Obligor,
retain the Collateral in satisfaction of the obligations.  Unless such written
notice is given, retention of the Collateral by Secured Party shall not be in
satisfaction of any of the obligations.

       6.4 Other Rights and Remedies.  Exercise any and all other rights and
remedies of Secured Party under the Note or under applicable law.

       7.0 Application of the Proceeds.  After an event of default, all cash
and checks included in the Collateral and all proceeds of Collateral received
by Secured Party will be applied by Secured Party to the Obligor's
obligations, whether or not due, in such order as Secured Party may determine
in its absolute and sole discretion, subject to any requirements of law.  If
application of the Collateral is not sufficient to pay the obligations in
full, Obligor shall remain obligated for the remaining obligations.

       8.0.  Continuation and Termination. This Agreement shall continue in
effect until payment and performance of the obligations of Obligor in full.

       Dated as of the date first above written.

                                          "Obligor"

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

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<PAGE>

                   CONVERTIBLE LINE OF CREDIT PROMISSORY NOTE

Amount: $140,000.00                                          Date: May 24, 2000

       FOR VALUE RECEIVED, Chequemate International, Inc., a Utah corporation
(referred to herein as the "Borrower") promises to pay to WTH Limited
(referred to herein as the "Lender"), or order, at the address the Lender
shall designate in writing to the Borrower from time to time, the sum of One
Hundred Forty Thousand dollars ($140,000) or the aggregate unpaid principal
balance of all advances made to the Borrower by the Lender pursuant to this
Note from time to time ("Advances") on April 1, 2001 ("Maturity Date") in
lawful money of the United States and in immediately available funds, together
with interest on the unpaid principal balance of this Convertible Line of
Credit Promissory Note ("Note") computed on the basis of a 360 day year and
charged on actual days the principal amount of any Advance is outstanding, at
the rate of twelve percent (12%) per annum.

       1. ADVANCES MADE PRIOR TO NOTE.  The Lender and Borrower acknowledge
that the Lender has made Advances to the Borrower pursuant to an oral lending
agreement, with the understanding that the terms of which were to be
subsequently negotiated and which are now set forth in this Note.

       2.  TERM OF NOTE.  The principal amount of all Advances made under the
terms of this Note and all accrued and unpaid interest shall be due and
payable on the Maturity Date.

       3.  PREPAYMENT.  The Borrower may not prepay any of the principal
amount of this Note, except with the express written consent of the Lender.

       4.  CONVERSION PRIVILEGES.  The Lender shall have the right to convert
up to the full amount of the then outstanding principal balance of the Note to
common stock and preferred stock of the Borrower to be issued by Borrower on
the terms and conditions set forth below:

              a.  TERM OF OPTION.  The Lender may convert the principal balance
              of loan to common and preferred stock at any time from the date
              of this Note until the principal balance is retired or converted.

              b.  CONVERSION PRICE AND LIMITATIONS.  The maximum amount of the
              principal balance of the Note to common stock is $60,000 at a
              conversion price of $1.00 per common share.  The maximum amount
              of the principal balance of the Note that may be converted by the
              Lender to preferred stock is $80,000.  Provided, however, the
              Lender acknowledges that the Borrower does not currently have
              preferred stock authorized by its Articles of Incorporation, but
              that it is the intention of the Borrower to submit to its
              shareholders resolutions authorizing the issuance of preferred
              stock and this right of conversion is subject to such approval by
              the Borrower's shareholders.  The number of preferred shares and
              the per share price is to be determined by the Borrower and
              ratified by the Borrower shareholders.

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<PAGE>

              c.  NOTICE OF ELECTION TO CONVERT.  The option to convert to
              common stock and preferred stock may be made by Lender at any
              time upon written Notice of Election to convert by Lender.  The
              Notice of Election to convert shall contain the date of
              conversion and the principal amount of the Advance to be
              converted to common stock and preferred stock.  Such conversion
              shall be effective on the date specified in the notice.

              d.  ADJUSTMENT FOR COMMON STOCK RECLASSIFICATIONS.  In the event,
              at any time after the date hereof, the holders of the common
              stock of the Borrower shall have received, or, on or after the
              record date fixed for the determination of eligible stockholders,
              shall have become entitled to receive, without payment therefore,
              other or additional stock or other securities or property by way
              of stock-split, spinoff, reclassification, combination of shares
              or similar corporate rearrangement, then and in each such case
              the Lender, upon the exercise hereof as provided herein, shall be
              entitled to receive the amount of stock and other securities and
              property which the Lender would hold on the date of such exercise
              if on record date of such corporate reclassification Lender had
              been the holder of record of the number of shares of common stock
              of the Borrower called for in the event of complete conversion of
              the Note and had thereafter retained such shares and/or all other
              or additional stock and other securities and property receivable
              by Lender as aforesaid during such period, giving effect to all
              adjustments called for during such period.

              e.  ADJUSTMENT FOR CONSOLIDATION OR MERGER.  In case of any
              reorganization of the Borrower after the date hereof, or in case,
              after such date, the Borrower shall consolidate with or merge
              into another corporation or convey all or substantially all of
              its assets to another corporation, then and in each such case
              the Lender, upon the exercise of its conversion rights at any
              time after the consummation of such reorganization,
              consolidation, merger or conveyance, shall be entitled to
              receive, in lieu of the stock or other securities and property
              receivable upon the conversion of this Note prior to such
              consummation, the stock or other securities or property to which
              Lender would be entitled had the Lender converted this Note
              immediately prior thereto.

              f.  PIGGYBACK REGISTRATION RIGHTS.  If, at any time after the
              conversion of this Note and expiring one year thereafter, the
              Borrower proposes to register any of its securities under the
              Securities Act of 1933 (the "Act") either for its own account or
              for the account of others, in connection with the public offering
              of such equity securities solely for cash, on a registration form
              that would also permit the registration of the shares of common
              stock or preferred stock issuable upon conversion of this Note,
              the Borrower shall promptly give the Lender written notice of
              such proposal.  Within thirty days after the notice is given,
              the Lender shall give notice as to the number of shares of
              common stock or preferred stock, if any, which the Lender
              requests be registered simultaneously with such registration by
              the Borrower.  The Borrower shall use its best efforts to include
              such shares in such registration statement and to cause such
              registration statement to become effective with respect to such
              shares.  All costs in connection such registration statement
              shall be borne by the Borrower.  The Lender shall bear all

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<PAGE>

              underwriting discounts, selling commissions, sales concessions
              and similar expenses applicable to the sale of the Lender's
              common stock or preferred stock.

              g.  RESERVATION OF STOCK.  The Borrower shall at all times
              reserve and keep available for issue upon conversion of this
              Note such number of its authorized but unissued shares of common
              stock or preferred stock as will be sufficient to permit the
              conversion in full of this Note.

              h.  INTEREST.  In the event of the conversion to common or
              preferred stock of any of the principal amount of any Advance,
              the accrued interest applicable to such converted principal
              shall be deemed to be forgiven upon conversion and shall not be
              otherwise payable pursuant to the terms of this Note.

              i.  ASSIGNMENT.  Lender may assign all or any part of this Note
              with its attendant conversion privileges to any party or parties.

              j.  CONDITIONS PRECEDENT. (i) The conversion of any part of this
              Note to preferred stock is subject to the approval by Borrower's
              shareholders of an amendment to the Borrower's Articles of
              Incorporation to authorized the issuance of preferred stock; and,
              (ii) the conversion of any part of this Note to common stock and
              the issuance of the related common stock is subject to the
              approval of the American Stock Exchange ("Amex") of a request by
              the Borrower to list such shares on the Amex.

       5.  SECURITY.  This Note is secured by a Security Agreement and a
financing statement granting a security interest in Borrower's tangible and
intangible assets.

       6.  DEFAULT.   If any installment or the final payment due under this
Note is not paid on its due date or within fifteen (15) days thereafter, if
the Borrower Board of Directors, or the Borrower shareholders if consent of
shareholders is required, fails to approve or ratify all of the terms of this
Note, or if the Borrower otherwise defaults under the terms of this Note or
the Security Agreement, then the holder hereof, following the giving of 10
days written notice may accelerate this Note and declare the entire balance
due and owing whereupon the Borrower agrees to pay the entire balance of the
Note upon demand.

       Each payment shall be applied first to the payment of interest and
thereafter to the payment of principal.  In the event of non-payment of any
installment, the final payment or the accelerated principal in the event of
default, the Borrower agrees to pay all expenses of collection of this Note,
including reasonable attorney's fees and court costs incurred in any
proceeding including any proceedings in the United States Bankruptcy Court.
After acceleration, in the event of default, and after the due date and before
and after judgment, this Note shall accrue interest until paid at the highest
legal rate.

       7.  GOVERNING LAW.  This Note shall be governed by the laws of the
State of Utah.

       8.  WAIVER OF NOTICE, ETC.  Every maker, endorser or guarantor of this
Note waives presentment, demand, notice, protest and all other notices in
connection with the deliver, acceptance,

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<PAGE>

default or enforcement of this Note and each agrees that the holder, from time
to time, may renew, modify or extend performance of obligations hereunder
without their consent.

       9.  ARBITRATION.  If at any time during or after the term of this Note
any dispute, difference, or disagreement shall arise upon or in respect of
this Note, or the conversion of the Note to common stock or preferred stock,
and the meaning and construction of the terms hereof, every such dispute,
difference, and disagreement shall be referred to a single arbitrator agreed
upon by the Borrower and the Lender, or if no single arbitrator can be agreed
upon, an arbitrator or arbitrators shall be selected in accordance with the
rules of the American Arbitration Association and such dispute, difference, or
disagreement shall be settled by arbitration in accordance with the then
prevailing commercial rules of the American Arbitration Association, and
judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof.  The arbitration proceedings shall be held in
Salt Lake City, Utah.

       10.  ASSIGNMENT.  This Note and the conversion privileges associated
herewith shall be assignable in whole or in part at any time by Lender.

       IN WITNESS WHEREOF, the Borrower has caused this Note to be executed as
of the date above set forth.

                                          BORROWER:

                                          CHEQUEMATE INTERNATIONAL, INC.

                                                 /s/ J. Michael Heil, CEO
                                          -------------------------------------
                                          By

                                 SECURITY AGREEMENT

                                        141

<PAGE>

                                    May 24, 2000

       Parties:    Obligor: CHEQUEMATE INTERNATIONAL, INC, a Utah corporation

                   Secured Party: WTH Limited

       Collateral: All tangible and intangible assets of the Obligor, including
                   patents and patents pending.

       Obligation: Convertible Line of Credit Promissory Note ("Note") dated
                   May 24, 2000

2.  Grant of Security Interest.  Obligor grants to Secured Party a Security
Interest in the Collateral to secure payment and performance of the Note.

3.  Obligor Representations and Warranties.  Obligor represents and warrants
to Secured Party as of the date of this Agreement and, as to Collateral in
which Obligor acquires an interest or rights after the date of this Agreement,
as of the date Obligor acquires such interest or rights.

       3.1 Ownership and Possession of Collateral.  Obligor is the legal
and/or beneficial owner of the Collateral.  There are no liens and
encumbrances on the Collateral or claims thereof, except as may be granted
contemporaneously with this Security Agreement.  There is no financing
statement now filed or recorded covering any of the Collateral.  Obligor is in
exclusive possession of the Collateral.

       3.2 Validity, Perfection, and Priority of Security Interest.  The
Security Interest granted in this agreement (i) is legal, valid, binding, and
enforceable, (ii) is a perfected Security Interest in all the collateral, and
(iii) is a first priority Security Interest in all the Collateral.

       3.3 Enforceability, Amount, and Other Matters concerning Collateral.
The Assets of the Obligee and the agreements, documents, and instruments
evidencing and securing the Assets are (i) genuine, (ii) the legal, valid and
binding obligations of the parties thereto, and (iii) enforceable against the
parties thereto in accordance with their terms.  Any copies of such
agreements, documents, and instruments delivered to Secured Party are accurate
and complete and, except for the items delivered to Secured Party there are
no amendments, modifications, extensions, renewals, restatements, or
supplements thereof.  No surety bond was required or given by Obligor in
connection with or is otherwise applicable to (1) any goods, or other tangible
personal property, or services relating to the Receivables, or (2) the
agreements, documents, or instruments out of which the Receivables arose.

       4.  Obligor Covenants.  Until the Note is paid in full, Obligor agrees
that, unless Secured Party otherwise agrees in writing in Secured Party's sole
and absolute discretion:

       4.1 Defense of Obligor's Title and of Security Interest.  Obligor shall
defend the Collateral, the title and interest therein of Obligor represented
and warranted in this Agreement, and the legality, validity, binding nature,
and enforceability of the Security Interest granted herein, the perfection
thereof, and the first priority thereof against all matters, including,
without limitation, (i) any attachment, levy, or other seizure by legal process
or otherwise of any or all Collateral, (ii) any lien or encumbrance

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<PAGE>

or claim thereof on any or all Collateral, (iii) any attempt to realize upon
any or all Collateral under any lien or encumbrance, regardless of whether
junior or senior to the Security Interest herein, and (iv) any claim
questioning the legality, validity, binding nature, enforceability,
perfection, or priority of the Security Interest herein.  Obligor shall notify
Secured Party immediately in writing of any of the foregoing.

       4.2 Allowances or Discounts.  Obligor shall grant to its customers only
such allowances, discounts, and other adjustments relating to the Collateral
as Obligor may reasonably determine to be in accordance with sound business
practice.

       4.3 Books and Records.  Obligor shall maintain complete and accurate
books and records relating to the collateral.

       4.4 Inspection and Verification.  The Secured Party and such persons as
the Secured Party may designate shall have the right, at any reasonable time
from time to time, (i) to enter upon the premises at which any of the
Collateral or any of the books and records included in the Collateral or
relating to the business, operations, or financial condition of Obligor is
located, (ii) to inspect the Collateral and such books and records, (iii) to
make copies of and extracts from such books and records, and (iv) to verify
under reasonable procedures determined by the Secured Party the amount,
condition, quality, quantity, status, validity, and value of, or any other
matter relating to, the collateral or the accounts payable or cash of Obligor
shown on any financial statement or other document delivered to Secured Party
(including, without limitation, in the case of Collateral that is an
obligation of or in the possession of a third person and in the case of
accounts payable and cash, by contacting the third party holding such assets).

       4.5 Further Assurances.  Obligor shall promptly execute, acknowledge,
deliver, and cause to be duly filed and recorded all such additional
agreements, documents, and instruments (including, without limitation,
financing statements and patent or intellectual property assignments) and take
all such other actions as Secured Party may reasonably request from time to
time to better assure, perfect, preserve, and protect the security interest
granted herein, the priority thereof, and the rights and remedies of Secured
Party hereunder.

       4.6 No Obligations and limit of Liability of Secured Party.  The
Secured Party does not assume and shall have no liability or obligation for
any liabilities or obligations of Obligor relating to the Collateral.  In
exercising its rights and remedies under the Note and this Agreement and
under applicable law, in performing any obligations to Obligor, and in acting
or omitting to act in respect of the Collateral and this Agreement, the
Secured Party shall have no liability or responsibility whatsoever.

       5.0 Subordination.  Secured Party agrees that in the event the Obligor
secures loan funds from an institutional source(s) in an amount greater than
$10,000,000, the Secured Party shall subordinate its interest to the lending
institution.

       6.0 Default.  Upon occurrence of an event of default, Secured Party
may, in its absolute and sole discretion and without demand or notice, do any
or all of the following:

                                     143

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