Document:

EXHIBIT 10.8

                               POWER KIOSKS, INC.
                   YEAR 2000 SUPPLEMENTAL EMPLOYEE/CONSULTANT
                             STOCK COMPENSATION PLAN

I.   PURPOSE OF THE PLAN.

     The purpose of this Plan is to further the growth of Power Kiosks, Inc. and
its  Subsidiaries  (together  being the  "Company")  by allowing  the Company to
compensate Employee/Consultants and certain other persons who have provided bona
fide services to the Company, through the award of Common Stock of the Company.

II.  DEFINITIONS.

     Whenever used in this Plan, the following terms shall have the meanings set
forth in this Section:

         1. "Award"  means  any grant of (i)  Common  Stock or (ii)  options  or
warrants to purchase Common Stock made under this Plan.

         2. "Board of Directors" means the Board of Directors of the Company.

         3. "Code" means the Internal Revenue Code of 1986, as amended.

         4. "Common Stock" means the Common Stock of the Company.

         5. "Date of Grant" means  the day the Board of Directors authorized the
grant  of an  Award  or such  later  date as may be  specified  by the  Board of
Directors as the date a particular Award will become effective

         6. "Employee/Consultant"  means  any  person  or  entity  (i)  who  has
rendered or will render bona fide services to the Company,  and (ii) who, in the
opinion  of the  Board of  Directors,  are in a  position  to make,  or who have
previously made, a significant contribution to the success of the Company.

         7. "Subsidiary"  means any corporation that is a subsidiary with regard
to as that term is defined in Section 424(f) of the Code.

III.     EFFECTIVE DATE OF THE PLAN.

         The effective date of this Plan is October 26, 2000.

IV.      ADMINISTRATION OF THE PLAN.

     The Board of Directors will be responsible for the  administration  of this
Plan, and will grant Awards under this Plan.  Subject to the express  provisions
of this  Plan and  applicable  law,  the  Board of  Directors  shall  have  full
authority and sole and absolute discretion to interpret this Plan, to prescribe,
amend and rescind  rules and  regulations  relating to it, and to make all other
determinations  which it believes to be necessary or advisable in  administering
this Plan. The  determinations of the Board of Directors on the matters referred
to in this Section shall be conclusive.  The Board of Directors  shall have sole
and absolute discretion to amend this Plan. No

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member of the Board of  Directors  shall be liable  for any act or  omission  in
connection  with the  administration  of this Plan unless it  resulted  from the
member's willful misconduct.

V.   STOCK SUBJECT TO THE PLAN.

     The  maximum  number of shares of Common  Stock as to which  Awards  may be
granted under this Plan is 700,000 shares which number represents 700,000 shares
not yet issued under the Plan.  The Board of Directors  may increase the maximum
number of shares of Common  Stock as to which Awards may be granted at such time
as it deems available.

VI.  PERSONS ELIGIBLE TO RECEIVE AWARDS.

      Awards may be granted only to Employee/Consultants.

VII. GRANTS OF AWARDS.

     Except as otherwise  provided  herein,  the Board of  Directors  shall have
complete  discretion to determine when and to  which Employee/Consultant  Awards
are to be granted,  and the number of shares of Common  Stock as to which Awards
granted to each  Employee/Consultant  will relate,  and the terms and conditions
upon which an Award may be issued (including,  without  limitation,  the date of
exercisability, exercise price and term of any Award which constitutes an option
or warrant to purchase Common Stock).  No grant will be made if, in the judgment
of the Board of Directors,  such a grant would constitute a public  distribution
within the meaning of the Securities Act of 1933, as amended (the "Act"), or the
rules and regulations promulgated thereunder.

VIII. DELIVERY OF STOCK CERTIFICATES.

     As promptly as practicable  after  authorizing  the grant of an Award,  the
Company  shall  deliver  to the  person who is the  recipient  of the  Award,  a
certificate or certificates  registered in that person's name,  representing the
number of shares  of  Common  Stock  that  were  granted.  If  applicable,  each
certificate shall bear a legend to indicate that the Common Stock represented by
the certificate was issued in a transaction  which was not registered  under the
Act, and may only be sold or  transferred  in a  transaction  that is registered
under the Act or is exempt from the registration requirements of the Act.

IX.  RIGHT TO CONTINUED ENGAGEMENT.

     Nothing  in this Plan or in the  grant of an Award  shall  confer  upon any
Employee/Consultant  the right to continued  engagement by the Company nor shall
it interfere  with or restrict in any way the rights of the Company to discharge
any Employee/Consultant or to terminate any consulting relationship at any time.

X.   LAWS AND REGULATIONS.

     1. The obligation of the Company to sell and deliver shares of Common Stock
on the grant of an Award under this Plan shall be subject to the condition  that
counsel for the Company be satisfied that the sale and delivery thereof will not
violate the Act or any other applicable laws, rules or regulations.

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     2. This Plan is intended to meet the requirements of Rule 16b-3 in order to
provide officers and directors with certain exemptions from Section 16(b) of the
Securities Exchange Act of 1934, as amended.

XI.  TERMINATION OF THE PLAN.

     The Board of Directors  may suspend or  terminate  this Plan at any time or
from time to time,  but no such action  shall  adversely  affect the rights of a
person granted an Award under this Plan prior to that date.

XII. DELIVERY OF PLAN.

     A copy of this Plan shall be delivered to all participants, together with a
copy of the resolution or resolutions of the Board of Directors  authorizing the
granting of the Award and establishing the terms, if any, of participation.

                                        3EXHIBIT 10.38

                                 LOAN AGREEMENT

ss.1.  Parties

     1.1.  This  Agreement  is made and entered into as of October 20, 2000 (the
"Effective  Date"),  by  and  between  ORANGE  PRODUCTIONS,  INC.,  and  CAPITAL
CONSULTANTS, INC.

ss.2.  Definition and Accounting Terms

         2.1.     Definitions.  As used in this Agreement:

                  (a)  "Affiliate"   means  any  Person  (i)  that  directly  or
         indirectly  controls,  or is controlled  by, or is under common control
         with the Borrower or a Subsidiary;  or (ii) that directly or indirectly
         beneficially  owns or holds five  percent  (5%) or more of any class of
         voting stock of the Borrower or any  Subsidiary;  or (iii) five percent
         (5%) or more of the voting  stock of which is  directly  or  indirectly
         beneficially owned or held by the Borrower or a Subsidiary.

                  (b)  "Lender" means  Capital  Consultants, Inc., a corporation
         incorporated under the laws of Kentucky, for itself and as Lender.

                  (c)  "Agreement"  means  this  Loan  Agreement,   as  amended,
         supplemented or modified from time to time.

                  (d)  "Borrower" means Orange Productions, Inc., a  corporation
         incorporated under the laws of the State of Florida.

                  (e) "Business Day" means any day other than a Saturday, Sunday
         or other day on which  commercial  banks in Florida are  authorized  or
         required to close under the laws of the State of Florida.

                  (f) "Closing  Date" means October 20, 2000, or such other date
         as the  Borrower  and the Lender may agree in writing to be the Closing
         Date.

                  (g)  Code"  means the US  Internal  Revenue  Code of 1986,  as
         amended  from  time  to  time,  and  the   regulations   and  published
         interpretations thereof.

                  (h)  "Collateral" means all  property  that  is subject to the
         Lien granted by the Security Agreement;

                  (i)  "Common Stock"  means  the  Borrower's  common  stock, US
         $0.0001 par  value.

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                  (j)  "Commonly Controlled Entity" means an entity, whether  or
         not incorporated,  that  is  under  common  control  with the Borrower,
         within the meaning of Section 414(b) or 414(c) of the Code.

                  (k)  "Control"   (whether  or  not   capitalized)   means  the
         possession, directly or indirectly, of the power to direct or cause the
         direction of the management and policies of a Person,  whether  through
         the ownership of voting securities, by contract, or otherwise.

                  (l) "Conversion  Shares" means the shares of Common Stock into
         which the Notes are convertible.

                  (m) "Debt" means (i)  indebtedness  or liability  for borrowed
         money; (ii) obligations evidenced by bonds, debentures,  notes or other
         similar instruments;  (iii) obligations for the deferred purchase price
         of property or services (including trade obligations); (iv) obligations
         under Capital  Leases;  (v) obligations  under letters of credit;  (vi)
         obligations   under  acceptance   facilities;   (vii)  all  guaranties,
         endorsements  (other  than for  collection  or deposit in the  ordinary
         course of business),  and other contingent  obligations to purchase, to
         provide  funds for payment,  to supply funds to invest in any Person or
         entity,  or otherwise to assure a creditor against loss; and (viii) all
         obligations  secured by any Liens,  whether or not the obligations have
         been assumed.

                  (n) "Default"  means any of the events  specified in paragraph
         9.1, whether or not any requirement for the giving of notice, the lapse
         of time, or both, or any other condition has been satisfied.

                  (o)  "Effective Date"  means  the  date set forth in paragraph
         1.1 of this Agreement.

                  (p)  "Escrow  Agreement"  shall have the  meaning  ascribed in
         paragraph 6.2(d) of this Agreement.

                  (q) "ERISA" means the Employee  Retirement Income Security Act
         of  1974,  as  amended  from  time to  time,  and the  regulations  and
         published interpretations thereof.

                  (r) "Event of Default"  means any of the events  specified  in
         Section 9.01,  provided that any  requirement for the giving of notice,
         the lapse of time, or both, or any other condition, has been satisfied.

                  (s)  "Exchange  Act"  means  the  United  States  of   America
         Securities Exchange Act of 1934, as amended.

                  (t)  "GAAP"  means generally accepted accounting principles in
         the U.S.

                  (u)  "Lenders" means  CAPITAL  CONSULTANTS,  INC., a  Kentucky
         corporation.

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                  (v) "Lien" means any mortgage, deed of trust, pledge, security
         interest, hypothecation,  assignment, deposit arrangement, encumbrance,
         lien (statutory or other), or preference,  priority,  or other security
         agreement or  preferential  arrangement,  charge or  encumbrance of any
         kind or nature whatsoever (including without limitation any conditional
         sale or other title  retention  agreement,  any financing  lease having
         substantially the same economic effect as any of the foregoing, and the
         filing of any financing  statement,  charge or similar notice under the
         law of any jurisdiction to evidence any of the foregoing.

                  (w)  "Loan" shall have the meaning ascribed  in  paragraph 3.1
         of this Agreement.

                  (x)  "Loan  Documents"  means  this  Agreement, the Notes, the
         Security  Agreement,  the Registration Rights Agreement, and the Escrow
         Agreement.

                  (y)  "Multiemployer Plan" means  a  Plan  described in Section
         4001(a)(3) of ERISA.

                  (z)  "Notes" shall  have the meaning ascribed in paragraph 3.4
         of this Agreement.

                  (aa) "PBGC" means the Pension Benefit Guaranty  Corporation or
         any entity succeeding to any or all of its functions under ERISA.

                  (bb) "Person" means an individual,  partnership,  corporation,
         business trust, joint stock company, trust, unincorporated association,
         joint  venture,  governmental  authority,  or other  entity of whatever
         nature.

                  (cc) "Plan"  means any pension  plan which is covered by Title
         IV of  ERISA  and in  respect  of  which  the  Borrower  or a  Commonly
         Controlled Entity is an "employer" as defined in Section 3(5) of ERISA.

                  (dd) "Prohibited  Transaction" means any transaction set forth
         in Section 406 of ERISA or Section 4975 of the Code.

                  (ee)  "Registration  Rights  Agreement" shall have the meaning
         ascribed in paragraph 6.2(b) of this Agreement.

                  (ff)  "Reportable Event" means any of the events  set forth in
         Section 4043 of ERISA.

                  (gg)  "SEC" means  the  Securities  and Exchange Commission of
         the United States of America.

                  (hh)  "Securities  Act"  means the  United  States of  America
         Securities Act of 1933, as amended.

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                  (ii)  "Security  Agreement"  means  a  Security  Agreement  in
         substantially  the form of Exhibit B to be  delivered  by the  Borrower
         under the terms of this Agreement.

                  (jj) "Subsidiary" means a corporation of which shares of stock
         having  ordinary  voting power (other than stock having such power only
         by reason of the happening of a contingency) to elect a majority of the
         board of directors  or other  managers of that  corporation  are at the
         time  owned,  or the  management  of  which  is  otherwise  controlled,
         directly or indirectly through one or more intermediaries,  or both, by
         the Borrower.

                  (kk)  "Termination Date" means December 31, 2003.

                  (ll)  "U.S." means the United States of America.

     2.2. Singular and Plural Terms. As used in this Agreement, terms defined in
the singular have the same meaning when used in the plural, and terms defined in
the plural have the same meaning when used in the singular.

     2.3.  Accounting  Terms. All accounting  terms not specifically  defined in
this  Agreement  shall be construed in accordance  with GAAP. All financial data
submitted pursuant to this Agreement shall be prepared in accordance with GAAP.

     2.4. Currency.  All currency described or otherwise referred to in the Loan
Documents is the currency of the United States of America.

ss.3.  Amount and Terms of the Loans

     3.1. The Loans.  The Lender agrees on the terms and conditions set forth in
this Agreement to make loans (each a "Loan" and collectively the "Loans") to the
Borrower from time to time during the period from the date of this  Agreement up
to but not including the Termination  Date, up to a maximum  principal amount of
One  Million  Dollars  in the  currency  of the United  States of  America  (US$
1,000,000). The initial Loan shall be in the principal amount of $50,000. Unless
the Lender  otherwise  agrees,  the aggregate amount of Loans made in any 90-day
period shall not exceed $250,000.

     3.2. Notice and Manner of Borrowing.  The Borrower shall give the Lender at
least  five (5)  Business  Days'  notice  of any  Loans  under  this  Agreement,
specifying the date and amount thereof.  Not later than 2:00 P.M. Lexington,  KY
time, on the date of such Loan and upon fulfillment of the applicable conditions
set forth in Section 4, the Lender will make such Loan available to the Borrower
in immediately  available funds by wire transfer to the Borrower's  account at a
commercial bank. The Borrower shall give the Lender written wiring  instructions
for such transfer,  specifying the name,  address and ABA routing number for the
Bank, and the Borrower's account number to be credited with the Loan proceeds.

     3.3.  Interest.  The  Borrower  shall  pay  interest  to the  Lender on the
outstanding and unpaid  principal  amount of the Loan at the rate of ten percent
(10%)  per year,  calculated  on the  basis of a year of 360 days  comprised  of
twelve 30-day months. Interest shall be payable upon any prepayment of principal
and at maturity, at the Lender's Principal Office.

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     3.4.  The  Notes.  The  Borrower's  obligation  to repay each Loan shall be
evidenced by its promissory note (each a "Note" and collectively the "Notes") in
substantially  the form of  Exhibit A attached  to this  Agreement  with  blanks
appropriately  filled in and payable to the order of the Lender. Each Note shall
be  dated  the date on which  the  Lender  advances  the  Loan  proceeds  to the
Borrower,  and each of the Notes  shall be due and  payable  on the  Termination
Date. At any time prior to their respective  payment in full, all or any part of
the  principal  and  interest  of the Notes may,  at the option of the Lender or
other  holder,  be converted  into Common  Stock,  at a price per share equal to
$0.60 on Conversion Date.

     3.5.  Collateral.  The Notes,  together  with all of the  Borrower's  other
obligations  under this Agreement,  shall be secured by a Security  Agreement in
the form of Exhibit B hereto executed by the Borrower.

     3.6.  Prepayments.  The Borrower may prepay the Notes, in whole or in part,
at any time with the  Lender's  consent.  The  Borrower  may prepay the Notes in
whole, or in part in increments of $25,000 or less with accrued  interest to the
date of such  prepayment on the amount  prepaid,  without the Lender's  consent,
provided that: (i) the Borrower gives the Lender not less than 10 Business Days'
prior  written  notice of its intention to do so, which notice shall specify the
amount being prepaid and the  prepayment  date;  (ii) a  registration  statement
under the Securities Act shall be in effect  registering the issuance and resale
of the Conversion  Shares;  (iii) the average closing bid price on an electronic
medium  such as the OTC  Bulletin  Board of the Common  Stock for the 20 trading
days  preceding  the notice shall be in excess of $0.75;  and the average  daily
trading volume for the Common Stock for the 20 trading days preceding the notice
shall be in excess of  20,000.  The Lender  may  convert  all or any part of the
Notes being prepaid at any time prior to receipt of the prepayment.

     3.7.  Method of Payment.  The Borrower  shall make each payment  under this
Agreement  and under the Notes at the Lender's  Principal  Office not later than
2:00 P.M.,  Lexington,  KY time on the date when due in lawful  currency  of the
United  States of America  and in  immediately  available  funds.  Whenever  any
payment to be made under this Agreement or under the Notes shall be stated to be
due on a day other than a Business  Day,  such payment shall be made on the next
succeeding  Business  Day,  and such  extension  of time  shall in such  case be
included in the computation of interest due on the Loan.

     3.8.  Use of  Proceeds.  The  Borrower  shall use the  proceeds of the Loan
solely  for the  following  purposes:(a)  to pay the  fees and  expenses  of the
Lender's  counsel in the  negotiation  and preparation of this Agreement and (b)
for the Borrower's working capital purposes.  The Borrower hereby authorizes the
Lender to withhold  the amounts  necessary  to repay that note and such fees and
expenses of its counsel from the proceeds of the Loans.

ss.4.  Conditions Precedent.

     4.1.  Condition  Precedent to Initial Loan. The obligation of the Lender to
make the initial Loan to the Borrower is subject to the condition precedent that
the  Lender  shall  have  received  on or before the day of the Loan each of the
following, in form and substance satisfactory to the Lender and its counsel:

                  (a)  Note. A Note for the principal amount of the initial Loan
         duly executed by the Borrower;

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                  (b) Security Agreement.  A Security Agreement duly executed by
         the Borrower;  together with an undertaking by the Borrower to (i) file
         within the time proscribed by law for perfecting the Lender's  security
         interest in the  Collateral,  and deliver to the Lender  acknowledgment
         copies of the Financing Statements (UCC-1) duly filed under the Uniform
         Commercial  Code of all  jurisdictions  necessary or, in the opinion of
         the Lender,  desirable to perfect the security  interest created by the
         Security Agreement,  and (ii) certified copies of Request for Copies or
         Information (Form UCC-11)  identifying all of the financing  statements
         on file with respect to the Borrower in all  jurisdictions  referred to
         under  (i),  including  the  Financing  Statement  filed by the  Lender
         against the  Borrower,  indicating  that no party claims an interest in
         any of the Collateral except as set forth on Schedule 5.1(o);

                  (c)  Evidence  of  all  corporate   action  by  the  Borrower.
         Certified  (as of the Effective  Date) copies of all  corporate  action
         taken by the Borrower, including resolutions of its Board of Directors,
         authorizing  the  execution,  delivery,  and  performance  of the  Loan
         Documents  and each other  document  to be  delivered  pursuant to this
         Agreement;

                  (d)  Incumbency and signature  certificate of the Borrower.  A
         certificate  (dated as of the  Effective  Date) of the Secretary of the
         Borrower  certifying  the names and true  signatures of the officers of
         the  Borrower  authorized  to sign the  Loan  Documents  and any  other
         documents to be delivered by the Borrower under this Agreement;

                  (e)  Registration Rights Agreement.  The  Registration  Rights
         Agreement;

                  (f)  Escrow Agreement.  The Escrow Agreement; and

                  (g) Opinion of counsel for the Borrower.  A favorable  opinion
         of counsel for the  Borrower,  in  substantially  the form of Exhibit C
         hereto,  and as to such other  matters  as the  Lender  may  reasonably
         request.

     4.2.  Conditions  Precedent to All Loans.  The  obligation of the Lender to
make each Loan  (including  the  initial  Loan)  shall be subject to the further
conditions precedent that on the date of such Loan:

                  (a) The  following  statements  shall be true  and the  Lender
         shall have received a certificate  signed by a duly authorized  officer
         of the  Borrower,  dated the date of such  Loan,  stating  that (i) the
         representations  and  warranties  contained  in  Section  5.1  of  this
         Agreement, and in Section 4.01 of the Security Agreement are correct on
         and as of the date of such Loan as though  made on and as of such date;
         and (ii) no Default or Event of Default has occurred and is continuing,
         or would result from such Loan;

                  (b) The Lender shall have received a detailed statement of the
         use of proceeds from the Loan,  reasonably  satisfactory to the Lender,
         certified by the Borrower's chief financial officer and chief executive
         officer;

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                  (c)  The  Lender  shall  have  received  such other approvals,
         opinions, or documents as the Lender may reasonably request;

ss.5.  Representations and Warranties.

     5.1. Borrower's Representations and Warranties. The Borrower represents and
warrants to the Lenders that:

                  (a) Incorporation,  Good Standing, and Due Qualification.  The
         Borrower is a corporation  duly  incorporated,  validly existing and in
         good standing under the laws of the jurisdiction of its  incorporation;
         has the corporate power and authority to own its assets and to transact
         the  business in which it is now engaged and proposes to be engaged in;
         and is duly  qualified as a foreign  corporation  and in good  standing
         under the laws of each other  jurisdiction in which such  qualification
         is required. The Borrower has no Subsidiaries.

                  (b) Corporate Power and Authority. The execution, delivery and
         performance  by the  Borrower  of the Loan  Documents  have  been  duly
         authorized  by all necessary  corporate  action and do not and will not
         (i)  require  any  consent  or  approval  of the  shareholders  of such
         corporation;  (ii)  contravene  such  corporation's  charter or bylaws;
         (iii) violate any provision of any law, rule, regulation,  order, writ,
         judgment,  injunction,  decree,  determination  or award  presently  in
         effect  having  applicability  to such  corporation;  (iv)  result in a
         breach of or constitute a default under any indenture or loan or credit
         agreement or any other  agreement,  lease or  instrument  to which such
         corporation is a party or by which it or its properties may be bound or
         affected;  (v) result in or require the creation or  imposition  of any
         Lien  upon  or with  respect  to any to the  properties  now  owned  or
         hereafter acquired by such corporation; and (vi) cause such corporation
         to be in default under any such law,  rule,  regulation,  order,  writ,
         judgment,  injunction,  decree,  determination  or  award,  or any such
         indenture, agreement, lease or instrument.

                  (c) Legally Enforceable Agreement. This Agreement is, and each
         of the other Loan Documents  when  delivered  under this Agreement will
         be, legal, valid and binding  obligations of the Borrower,  enforceable
         against the Borrower in accordance with their respective terms,  except
         to the  extent  that such  enforcement  may be  limited  by  applicable
         bankruptcy,  insolvency  and other  similar laws  affecting  creditors'
         rights generally.

                  (d) Financial Statements. Borrower's Financial Statements. The
         balance  sheet of the Borrower,  and the related  statements of income,
         retained  earnings and cash flows of the Borrower and the  accompanying
         footnotes,  together with the opinion  thereon of Durland & Co., CPA'S,
         P.A.,  independent  certified public  accountants  copies of which have
         been  included by the  Borrower  in its  reports  filed with the SEC on
         Forms 10-K and 10-Q, respectively,  are complete and correct and fairly
         present the  financial  condition  of the Borrower as at such dates and
         the results of the  operations of the Borrower for the periods  covered
         by such statements,  all in accordance with GAAP  consistently  applied
         (subject to year-end  adjustments in the case of the interim  financial
         statements), and since July 31, 2000, there has been no

<PAGE>

         material  adverse  change in the condition  (financial  or  otherwise),
         business, or operations of the Borrower or any Subsidiary. There are no
         liabilities  of the Borrower or any  Subsidiary,  fixed or  contingent,
         which are material but are not reflected in the financial statements or
         in the notes thereto,  other than  liabilities  arising in the ordinary
         course of business since July 31, 2000.

                  (e)  Full  Disclosure.  No  information,   exhibit  or  report
         furnished  by the  Borrower,  to the  Lender  in  connection  with  the
         negotiation of this Agreement  contained any material  misstatement  of
         fact or omitted to state a material fact or any fact  necessary to make
         the statement contained therein not materially misleading.

                  (f) Labor  Disputes and Acts of God.  Neither the business nor
         the  properties of the Borrower or any  Subsidiary  are affected by any
         fire,  explosion,  accident,  strike,  lockout or other labor  dispute,
         drought, storm, hail, earthquake,  embargo, act of God or of the public
         enemy,  or  other  casualty  (whether  or  not  covered  by  insurance)
         materially  and adversely  affecting  such  business  properties or the
         operation of the Borrower or such Subsidiary.

                  (g) Other Agreements.  Except as set forth on Schedule 5.1 (g)
         the  Borrower  is  not a  party  to  any  indenture,  loan,  or  credit
         agreement, or to any lease or other agreement or instrument, or subject
         to any  charter or  corporate  restriction  which could have a material
         adverse  effect on the business,  properties,  assets,  operations,  or
         conditions,  financial or  otherwise,  of the Borrower to carry out its
         obligations under the Loan Documents. The Borrower is not in default in
         any respect in the  performance,  observance,  or fulfillment of any of
         the obligations, covenants, or conditions contained in any agreement or
         instrument material to its business to which it is a party.

                  (h)  Litigation.  There is no pending or threatened  action or
         proceeding   against  or  affecting  the  Borrower  before  any  court,
         governmental agency, or arbitrator which may, in any one case or in the
         aggregate,   materially   adversely  affect  the  financial  condition,
         operations,  properties,  or business of the Borrower or the ability of
         the Borrower to perform its obligations under the Loan Documents.

                  (i) No  Defaults  on  Outstanding  Judgments  or  Orders.  The
         Borrower has satisfied  all  judgments (if any),  and is not in default
         with  respect to any  judgment,  writ,  injunction,  decree,  rule,  or
         regulation of any court,  arbitrator,  or federal, state, municipal, or
         other governmental  authority,  commission,  board,  bureau,  agency or
         instrumentality, domestic or foreign.

                  (j) Ownership  and Liens.  The Borrower has title to, or valid
         leasehold  interests  in, all of its  properties  and assets,  real and
         personal,  including the properties  and assets and leasehold  interest
         reflected in the financial  statements  referred to in paragraph 5.1(d)
         of this Agreement  (other than any properties or assets  disposed of in
         the ordinary course of business), and none of the properties and assets
         owned by the Borrower and none of its leasehold interests is subject to
         any Lien, except such as may be permitted  pursuant to paragraph 7.1(a)
         of this Agreement.

<PAGE>

                  (k) ERISA.  The  Borrower  is in  compliance  in all  material
         respects with all applicable  provisions of ERISA. Neither a Reportable
         Event nor a Prohibited  Transaction has occurred and is continuing with
         respect to any Plan;  no notice of intent to  terminate a Plan has been
         filed, nor has any Plan been terminated;  no circumstances  exist which
         constitute  grounds  entitling  the PBGC to  institute  proceedings  to
         terminate, or appoint a trustee to administer, a Plan, nor has the PBGC
         instituted any such proceedings;  neither the Borrower nor any Commonly
         Controlled  Entity  has  completely  or  partially   withdrawn  from  a
         Multiemployer  Plan; the Borrower and each Commonly  Controlled  Entity
         have met their minimum funding requirements under ERISA with respect to
         all of their Plans,  and the present value of all vested benefits under
         each Plan does not  exceed  the fair  market  value of all Plan  assets
         allocable to such benefits,  as determined on the most recent valuation
         date of the Plan and in accordance  with the  provisions of ERISA;  and
         neither the Borrower nor the Parent nor any Commonly  Controlled Entity
         has incurred any liability to the PBGC under ERISA.

                  (l)  Operation  of  Business.   The  Borrower   possesses  all
         licenses, permits,  franchises,  patents,  copyrights,  trademarks, and
         trade names, or rights thereto, to conduct their respective  businesses
         substantially  as  now  conducted  and  as  presently  proposed  to  be
         conducted,  and the Borrower is not in violation of any valid rights of
         others with respect to any of the foregoing.

                  (n) Taxes.  The Borrower  has filed all tax returns  (federal,
         state,  and  local)  required  to be  filed  and have  paid all  taxes,
         assessments,  and  governmental  charges and levies  thereon to be due,
         including any interest and penalties.

                  (o) Debt.  Schedule  5.1(o) is a complete  and correct list of
         all credit agreements,  indentures,  purchase  agreements,  guaranties,
         Capital Leases,  and other  investments,  agreements,  and arrangements
         presently in effect  providing  for or relating to extensions of credit
         (including  agreements and  arrangements for the issuance of letters of
         credit or for acceptance financing) in respect of which the Borrower is
         in any manner  directly  or  contingently  obligated;  and the  maximum
         principal  or  face  amounts  of the  credit  in  question,  which  are
         outstanding and which can be outstanding, are correctly stated, and all
         Liens of any nature  given or agreed to be given as  security  therefor
         are correctly described or indicated in Schedule 5.1(o).

                  (p) Environment.  The Borrower has duly complied with, and its
         businesses,  operations,  assets, equipment,  property,  leaseholds, or
         other facilities are in compliance with, the provisions of all federal,
         state,  and local  environmental,  health,  and safety laws,  codes and
         ordinances,  and all rules and regulations promulgated thereunder.  The
         Borrower has been issued and will maintain all required federal, state,
         and local permits,  licenses,  certificates,  and approvals relating to
         (1) air emissions; (2) discharges to surface water or groundwater;  (3)
         noise  emissions;  (4) solid or  liquid  waste  disposal;  (5) the use,
         generation, storage, transportation,  or disposal of toxic or hazardous
         substances or wastes  (intended hereby and hereafter to include any and
         all such materials listed in any federal,  state, or local law, code or
         ordinance  and all  rules and  regulations  promulgated  thereunder  as
         hazardous or

<PAGE>

         potentially hazardous);  or (6) other environmental,  health, or safety
         matters.  A true,  accurate,  and  complete  list of all such  permits,
         licenses,  certificates,  and approvals is attached  hereto as Schedule
         5.1(p).  The  Borrower  has not  received  notice  of, nor knows of, or
         suspects  facts which might  constitute  any violations of any federal,
         state,  or  local  environmental,  health,  or  safety  laws,  codes or
         ordinances,  and any rules or regulations  promulgated  thereunder with
         respect to its businesses,  operations,  assets,  equipment,  property,
         leaseholds,  or other  facilities.  Except in  accordance  with a valid
         governmental  permit,  license,  certificate,  or  approval  listed  in
         Schedule  5.1(p),  there  has  been no  emission,  spill,  release,  or
         discharge  into or upon (1) the air;  (2)  soils;  or any  improvements
         located  thereon;  (3) surface water or groundwater;  or (4) the sewer,
         septic system or waste treatment,  storage or disposal system servicing
         the premises of any toxic or hazardous  substances or wastes at or from
         the  premises;  and  accordingly  the  premises of the Borrower and its
         Subsidiaries  are free of all such  toxic or  hazardous  substances  or
         wastes. There has been no complaint, order, directive, claim, citation,
         or notice by any  governmental  authority  or any person or entity with
         respect to (1) air  emissions;  (2) spills,  releases or  discharges to
         soils or improvements  located thereon,  surface water,  groundwater or
         the  sewer,  septic  system or waste  treatment,  storage  or  disposal
         systems  servicing  the  premises;  (3) noise  emissions;  (4) solid or
         liquid   waste   disposal;   (5)   the   use,   generation,    storage,
         transportation,  or disposal of toxic or hazardous substances or waste;
         or (6) other  environmental,  health,  or safety matters  affecting the
         Borrower or its  business,  operations,  assets,  equipment,  property,
         leaseholds,   or  other  facilities.   Neither  the  Borrower  nor  its
         Subsidiaries have any indebtedness,  obligation, or liability, absolute
         or  contingent,  matured or not  matured,  with respect to the storage,
         treatment,  cleanup, or disposal of any solid wastes,  hazardous wastes
         or other toxic or hazardous  substances  (including  without limitation
         any such  indebtedness,  obligation,  or liability  with respect to any
         current regulation,  law, or statute regarding such storage, treatment,
         cleanup,  or disposal) which is not shown on Schedule 5.1(p). Set forth
         in Schedule  5.1(p) is a list of all real  property  owned or leased by
         the  Borrower  and its  Subsidiaries,  and a brief  description  of the
         business conducted at such location.

                  (p)  Registration and Listing of Common Stock. The Borrower is
         a reporting  company and has continuously  been a reporting company for
         more than the 12 calendar  months  preceding the Closing Date,  and the
         Common Stock is  registered  under the Exchange Act and is to be listed
         on the OTC Bulletin Board. The Borrower has filed all reports and other
         documents required of it by the Exchange Act, the rules and regulations
         of the SEC, and the rules and regulations of the OTC Bulletin Board.

                  (q)  Exemption  of Notes  from  Registration.  The  Borrower's
         issuance of the Notes are exempt from the registration  requirements of
         Section 5 of the  Securities  Act  pursuant  to the  provisions  of SEC
         Regulation D.

     5.2.  Lender's  Representations  and Warranties.  The Lender represents and
warrants to the Borrower that:

<PAGE>

                  (a)  Accredited Investor.  Each  of  the  Lender and the other
         Lenders is an  accredited  investor  as that  term is  defined  in Rule
         501(a)(3)  of Regulation D of the SEC.

ss.6.  Affirmative Covenants.

     6.1.  Financial and  Operational.  So long as any of the Notes shall remain
unpaid, the Borrower will:

                  (a)  Maintenance  of  Existence.  Preserve  and  maintain  its
         corporate  existence  and  good  standing  in the  jurisdiction  of its
         incorporation,   and  qualify  and  remain   qualified   as  a  foreign
         corporation  in  each  jurisdiction  in  which  such  qualification  is
         required.

                  (b) Maintenance of Records. Keep adequate records and books of
         account, in which complete entries will be made in accordance with GAAP
         consistently applied, reflecting all material financial transactions of
         the Borrower.

                  (c) Maintenance of Properties. Maintain, keep and preserve all
         of its properties (tangible and intangible)  necessary or useful in the
         proper  conduct of its  business in good working  order and  condition,
         ordinary wear and tear excepted.

                  (d) Conduct of  Business.  Continue to engage in an  efficient
         and  economical  manner  in a  business  of the  same  general  type as
         conducted by it on the date of this Agreement.

                  (e)   Maintenance  of  Insurance.   Maintain   insurance  with
         financially sound and reputable  insurance companies or associations in
         such  amounts  and  covering  such  risks  as are  usually  carried  by
         companies  engaged  in the same or a  similar  business  and  similarly
         situated, which insurance may provide for reasonable deductibility from
         its coverage.

                  (f) Compliance  With Laws.  Comply with all  applicable  laws,
         codes,  regulations,  rules,  ordinances and orders,  including without
         limitation   paying  before  the  same  become  delinquent  all  taxes,
         assessments  and  governmental  charges  imposed  upon it or  upon  its
         property.

                  (g) Right of Inspection.  At any reasonable time and from time
         to time, permit the Lender or any of its Lenders or  representatives to
         examine and make copies of and abstracts  from the records and books of
         account of, and visit the properties  of, the Borrower,  and to discuss
         its affairs, finances and accounts with any of its officers,  directors
         and independent accountants.

                  (h)  Reporting Requirements. Furnish to the Lender:

                           (i)  Quarterly Financial Statements.  The  Borrower's
         reports on Form 10-Q or 10-QSB contemporaneously with their filing with
         the SEC.

<PAGE>

                           (ii)  Annual  Financial  Statements.  The  Borrower's
         annual reports on  Form  10-K or 10-KSB  contemporaneously  with  their
         filing with the SEC.

                           (iii)  Management  Letters.   Promptly  upon  receipt
         thereof,  copies  of  any  reports  submitted  to the  Borrower  or any
         Subsidiary  by  independent   accountants  in  connection   with  their
         examination of the financial statements of the Borrower.

                           (iv)  Certificate of No Default.  Within  twenty-five
         (25) days after the end of each month a certificate  of the  Borrower's
         chief  financial  officer  certifying  that  to the  best of his or her
         knowledge no Default or Event of Default has occurred and is continuing
         or, if a Default or Event of Default has occurred and is continuing,  a
         statement  as to the nature  thereof and the action that is proposed to
         be taken with respect thereto.

                           (v)  Notice  of   Litigation.   Promptly   after  the
         commencement  thereof,  notice of all  actions,  suits and  proceedings
         before any court or governmental department, commission, board, bureau,
         agency,  or  instrumentality   (domestic  or  foreign)  or  arbitrator,
         affecting the Borrower, which, if determined adversely to the Borrower,
         could  have a  material  adverse  effect  on the  financial  condition,
         properties or operations of the Borrower.

                           (vi)  Notice of Defaults  and Events of  Default.  As
         soon as  possible  and in any  event  within  ten (10)  days  after the
         occurrence of each  material  Default or material  Event of Default,  a
         written  notice  setting  forth the details of such Default or Event of
         Default and the action  that is  proposed  to be taken by the  Borrower
         with respect thereto.

                           (vii) ERISA reports. As soon as possible,  and in any
         event within thirty (30) days after the Borrower knows or has reason to
         know that any circumstances exist that constitute grounds entitling the
         PBGC to institute proceedings to terminate a Plan subject to ERISA with
         respect to the Borrower or any Commonly Controlled Entity, and promptly
         but in any  event  within  two  (2)  Business  Days of  receipt  by the
         Borrower  or any  Commonly  Controlled  Entity of notice  that the PBGC
         intends to  terminate  a Plan or appoint a trustee  to  administer  the
         same,  and promptly  but in any event within five (5) Business  Days of
         the receipt of notice concerning the imposition of withdrawal liability
         with  respect to the Borrower or any Commonly  Controlled  Entity,  the
         Borrower  will  deliver  to the  Lender  a  certificate  of  the  chief
         financial  officer of the Borrower  setting forth all relevant  details
         and the  action  which  the  Borrower  proposes  to take  with  respect
         thereto.

                           (vii) Reports to Other Creditors.  Promptly after the
         furnishing thereof,  copies of any statement or report furnished by the
         Borrower or any  Subsidiary to any other party pursuant to the terms of
         any  indenture,  loan,  credit or similar  agreement  and not otherwise
         required to be furnished to the Lender  pursuant to any other clause of
         this Agreement.

                           (viii) Other Regulatory Reports and Filings. Promptly
         after the  sending  or  filing thereof, copies of all proxy statements,
         financial statements and

<PAGE>

         reports that the Borrower or any Subsidiary sends to its  shareholders,
         and  copies of all  regular,  periodic  and  special  reports,  and all
         registration  statements  that the Borrower  files with the  securities
         regulatory  authorities of any country,  province or state, or with any
         securities exchange.

                           (ix)  General  Information.  Such  other  information
         respecting the condition or operations, financial or  otherwise, of the
         Borrower as the Lender may from time to time reasonably request.

                  (i)  Environment,   Health  and  Safety.   Be  and  remain  in
         compliance  with  the  provisions  of all  federal,  state,  and  local
         environmental,  health, and safety laws, codes and ordinances,  and all
         rules and regulations issued thereunder;  notify the Lender immediately
         of any  notice of a  hazardous  discharge  or  environmental  complaint
         received from any  governmental  agency or any other party;  notify the
         Lender  immediately  of any hazardous  discharge  from or affecting its
         premises;  immediately  contain and remove the same, in compliance with
         all  applicable  laws;  promptly  pay any fine or penalty  assessed  in
         connection  therewith;  permit the Lender to inspect the  premises,  to
         conduct tests thereon,  and to inspect all books,  correspondence,  and
         records  pertaining  thereto;  and at the Lender's request,  and at the
         Borrower's  expense,  provide  a report  of a  qualified  environmental
         engineer,  satisfactory in scope,  form, and content to the Lender, and
         such other and further assurances reasonably satisfactory to the Lender
         that the condition has been corrected.

     6.2. The Borrower hereby further covenants and agrees with the Lender that:

                  (a)   Registration   of   Common   Stock   Underlying   Notes.
         Contemporaneously  with the execution of this  Agreement,  the Borrower
         shall execute and deliver to the Lender a registration rights agreement
         in  the  form  of   Exhibit  F  hereto.   (the   "Registration   Rights
         Agreement").The  Borrower  shall  register the issuance and sale of the
         Conversion  Stock in accordance with the provisions of the Registration
         Rights Agreement.

                  (b)  Escrow.  Contemporaneously  with  the  execution  of this
         Agreement,  the Borrower  shall  execute an escrow  agreement  with the
         Lender as escrow holder (the "Escrow Agreement") in the form of Exhibit
         G to this  Agreement.  Contemporaneously  with  the  execution  of this
         Agreement,  the Borrower shall execute and deliver to the Escrow Holder
         a  certificate  for 80,333  shares of Common  Stock as a portion of the
         number of Conversion Shares (based upon a conversion price of $0.60 per
         share)  underlying  the  principal  amount of the Note  evidencing  the
         initial Loan. Prior to each additional Loan, the Borrower shall execute
         and deliver to the Escrow Holder a  certificate  for 100% of the number
         of additional Conversion Shares (based upon a conversion price of $0.60
         per share)  underlying the principal amount of the Note evidencing that
         Loan. All  certificates  for Conversion  Shares delivered to the Escrow
         Holder shall be  registered  in the name of CAPITAL  CONSULTANTS,  INC.
         Until such time as the registration  statement  covering the Conversion
         Shares is effective,  the certificates  shall bear a legend  indicating
         that they have been  issued in a  transaction  that is exempt  from the
         registration requirements

<PAGE>

         of the Securities  Act, and may not be transferred  except  pursuant to
         registration  under  the  Securities  Act  or an  exemption  from  such
         registration.  Except for such  legend,  the Common Stock shall be free
         and  clear  of  any  legends,  liens,  claims,  stop  orders  or  other
         restrictions.

ss.7.  Negative Covenants.

         7.1. So long as any of the Notes remains unpaid, or the Lender shall be
obligated to make Loans under this Agreement, the Borrower will not:

                  (a)  Liens.  Create,  incur,  assume,  or suffer to exist,  or
         permit any Subsidiary to create, incur, assume, or suffer to exist, any
         Lien  upon or with  respect  to any of its  properties,  now  owned  or
         hereafter acquired, except:

                           (1)  Liens in favor of the Lender;

                           (2)  Liens  for   taxes  or   assessments   or  other
         government  charges or levies if not yet due and payable or, if due and
         payable,  if they are  being  contested  in good  faith by  appropriate
         proceedings and for which appropriate reserves are maintained;

                           (3)  Liens  imposed  by  law,  such  as   mechanics',
         materialmen's,  landlords',  warehousemen's,  and carriers'  Liens, and
         other  similar  Liens,  securing  obligations  incurred in the ordinary
         course of  business  which are not past due for more than  thirty  (30)
         days or  which  are  being  contested  in  good  faith  by  appropriate
         proceedings and for which appropriate reserves have been established;

                           (4)  Liens  under workers' compensation, unemployment
         insurance, Social Security, or similar legislation;

                           (5)  Liens,   deposits,  or  pledges  to  secure  the
         performance of bids,  tenders,  contracts (other than contracts for the
         payment  of  money),   leases   (permitted  under  the  terms  of  this
         Agreement),  public or statutory  obligations,  surety,  stay,  appeal,
         indemnity,  performance,  or other  similar  bonds,  or  other  similar
         obligations arising in the ordinary course of business;

                           (6)  Liens disclosed on Schedule 5.1(o);

                           (7)  Judgment  and other  similar  Liens  arising  in
         connection  with court  proceedings,  provided  the  execution or other
         enforcement of such Liens is effectively  stayed and the claims secured
         thereby are being  actively  contested in good faith and by appropriate
         proceedings;

                           (8) Easements, rights-of-way, restrictions, and other
         similar  encumbrances  which,  in  the  aggregate,  do  not  materially
         interfere  with the  occupation,  use, and enjoyment by the Borrower or
         any  Subsidiary  of the  property or assets  encumbered  thereby in the
         normal  course of its  business or  materially  impair the value of the
         property subject thereto; and

<PAGE>

                           (9)  Liens  securing  obligations  of a Subsidiary to
         the Borrower or another Subsidiary

                  (b) Debt. Create, incur, assume, or suffer to exist, or permit
         any Subsidiary to create,  incur, assume, or suffer to exist, any Debt,
         except:

                           (1)  Debt of the Borrower under this Agreement or the
         Note;

                           (2)  Debt  described   in   Schedule  5.1(o)  but  no
         voluntary prepayments, renewals, extensions, refinancings, or increases
         in he amounts thereof;

                           (3)  Debt  of  the  Borrower  subordinated  on  terms
         satisfactory  to  the  Lender  to  the Borrower's obligation under this
         Agreement and the Note;

                           (4) Debt of the  Borrower to any Subsidiary or of any
         Subsidiary to the Borrower or another Subsidiary; and

                           (5) Accounts  payable to trade creditors for goods or
         services  which are not aged more than sixty (60) days from the billing
         date and current operating  liabilities (other than for borrowed money)
         which are not more than ten (10) days past due,  in each case  incurred
         in the ordinary course of business,  as presently  conducted,  and paid
         within  the  specified  time,  unless  contested  in good  faith and by
         appropriate proceedings.

                  (c)  Mergers,  Etc.  Wind up,  liquidate  or dissolve  itself,
         reorganize, merge or consolidate with or into, or convey, sell, assign,
         transfer, lease, or otherwise dispose of (whether in one transaction or
         in a series of  transactions)  all or  substantially  all of its assets
         (whether now owned or hereafter acquired) to any Person, or acquire all
         or substantially  all of the assets or the business of any Person,  and
         the Borrower  shall not permit any Subsidiary to do so, except that (1)
         any Subsidiary may merge into or transfer  assets to the Borrower,  and
         (2) any  Subsidiary  may merge  into or  consolidate  with or  transfer
         assets to any other Subsidiary.

                  (d) Leases.  Create,  incur,  assume,  or suffer to exist,  or
         permit any Subsidiary to create, incur, assume, or suffer to exist, any
         material  obligation  as lessee  for the  rental or hire of any real or
         personal  property,  except:  (i) Capital  Leases  created  pursuant to
         existing lease financing  agreements disclosed on Schedule 5.1(o); (ii)
         leases  existing on the date of this  Agreement  and any  extensions or
         renewals  thereof;  and  (iii)  leases  between  the  Borrower  and any
         Subsidiary or between any Subsidiaries.

                  (e) Sale and Leaseback.  Sell, transfer,  or otherwise dispose
         of, or permit any Subsidiary to sell,  transfer,  or otherwise  dispose
         of, any real or personal property to any Person and thereafter directly
         or indirectly lease back the same or similar property.

                  (f)  Dividends.  Declare  or  pay  any dividends; or purchase,
         redeem, retire, or otherwise acquire for value any of its capital stock
         now or hereafter outstanding; or

<PAGE>

         make any  distribution of assets to its stockholders as such whether in
         cash, assets, or obligations of the Borrower;  or allocate or otherwise
         set apart any sum for the payment of any dividend or  distribution  on,
         or for the  purchase,  redemption,  or  retirement of any shares of its
         capital stock;  or make any other  distribution by reduction of capital
         or otherwise in respect of any shares of its capital  stock;  or permit
         any of its  Subsidiaries  to do any of the  foregoing or to purchase or
         otherwise  acquire  for  value  any stock of the  Borrower  or  another
         Subsidiary.

                  (g)  Sale  of  Assets.  Sell,  lease,  assign,   transfer,  or
         otherwise dispose of, or permit any Subsidiary to sell, lease,  assign,
         transfer,  or  otherwise  dispose of, any of its now owned or hereafter
         acquired assets  (including,  without  limitation,  shares of stock and
         indebtedness of Subsidiaries,  receivables,  and leasehold  interests),
         except:  (1) inventory  disposed of in the ordinary course of business;
         (2) the sale or other disposition of assets no longer used or useful in
         the  conduct of its  business;  and (3) that any  Subsidiary  may sell,
         lease, assign, or otherwise transfer its assets to the Borrower.

                  (h)  Investments.  (i) Make, or permit any Subsidiary to make,
         any loan or  advance  to any  Person,  or (ii)  purchase  or  otherwise
         acquire, or permit any Subsidiary to purchase or otherwise acquire, any
         capital stock,  assets,  obligations,  or other securities of, make any
         capital contribution to, or otherwise invest in or acquire any interest
         in any Person,  or  participate as a partner or joint venturer with any
         other Person,  except: (1) direct obligations of the U.S. or any agency
         thereof  with  maturities  of  one  year  or  less  from  the  date  of
         acquisition;  (2) commercial  paper of a domestic issuer rated at least
         "A-1" by Standard & Poor's  Corporation  or "P-1" by Moody's  Investors
         Service,  Inc.; (3) certificates of deposit with maturities of one year
         or less  from the date of  acquisition  issued by any  commercial  bank
         having  capital  and  surplus  in excess of One  Hundred  Million  U.S.
         Dollars  (US$100,000,000);  and (4) stock,  obligations,  or securities
         received in  settlement  of debts  (created in the  ordinary  course of
         business) owing to the Borrower or any Subsidiary.

                  (i) Guaranties,  Etc. Assume, guaranty,  endorse, or otherwise
         be or become directly or contingently  responsible or liable, or permit
         any Subsidiary to assume, guaranty,  endorse, or otherwise be or become
         directly or  contingently  responsible  or liable  (including,  but not
         limited to, an  agreement to purchase any  obligation,  stock,  assets,
         goods, or services,  or to supply or advance any funds, assets,  goods,
         or  services,  or an  agreement  to  maintain  or cause such  Person to
         maintain a minimum working capital or net worth, or otherwise to assure
         the  creditors of any Person  against  loss),  for  obligations  of any
         Person, except guaranties by endorsement of negotiable  instruments for
         deposit or collection or similar transactions in the ordinary course of
         business.

                  (j) Transactions With Affiliates.  Enter into any transaction,
         including,  without  limitation,  the  purchase,  sale,  or exchange of
         property or the rendering of any service, with any Affiliate, or permit
         any  Subsidiary  to enter  into  any  transaction,  including,  without
         limitation,  the  purchase,  sale,  or  exchange  of  property  or  the
         rendering of any service,  with any  Affiliate,  except in the ordinary
         course of and pursuant to the reasonable requirements of the Borrower's
         or such Subsidiary's

<PAGE>

         business and upon fair and  reasonable  terms no less  favorable to the
         Borrower  or  such   Subsidiary  than  would  obtain  in  a  comparable
         arm's-length transaction with a Person not an Affiliate.

                  (k)  Capital Expenditures.  Purchase  or otherwise acquire, or
         permit any  Subsidiary  to  purchase or otherwise acquire, any material
         capital assets, without the Lender's prior written consent.

ss.8.  Financial Covenants

     8.1. So long as the Note shall  remain  unpaid or the Lender shall have any
Commitment under this Agreement, the Borrower shall not, nor shall it permit any
Subsidiary to, increase the amount of any  borrowings,  or obtain any additional
advances on any existing lines of credit in excess of their currently contracted
limits,  except for Loans  under this  Agreement,  without  the  Lender's  prior
written consent.

ss.9.  Events of Default

         9.1.  Events of Default. If any of the following events shall occur:

                  (a)  The  Borrower  should  fail to pay  the  principal  of or
         interest on any Note as and when due and payable,  or any amount of any
         other  fee by or  within  10 days  after  the  date  that it is due and
         payable;

                  (b) Any  representation or warranty made or deemed made by the
         Borrower  in  thisAgreement  or any other  Loan  Document,  or which is
         contained in any certificate,  document, opinion, or financial or other
         statement  furnished at any time under or in  connection  with any Loan
         Document, shall prove to have been incorrect, incomplete, or misleading
         in any material respect on or as of the date made or deemed made;

                  (c) The  Borrower  shall fail to perform or observe  any term,
         covenant,  or agreement  contained in this Agreement to be performed or
         observed by it ;

                  (d) The Borrower or any  Subsidiary  shall (i) fail to pay any
         indebtedness  for borrowed  money (other than the Note) of the Borrower
         or such  Subsidiary,  as the case may be, or any  interest  or  premium
         thereon, when due (whether by scheduled maturity,  required prepayment,
         acceleration, demand, or otherwise), or (ii) fail to perform or observe
         any material term,  covenant,  or condition on its part to be performed
         or observed  under any  agreement  or  instrument  relating to any such
         indebtedness,  when required to be performed or observed, if the effect
         of such  failure to perform or observe is to  accelerate,  or to permit
         the  acceleration of, after the giving of notice or passage of time, or
         both, the maturity of such indebtedness, whether or not such failure to
         perform or observe shall be waived by the holder of such  indebtedness;
         or any such  indebtedness  shall be declared to be due and payable,  or
         required to be prepaid  (other than by a regularly  scheduled  required
         prepayment), prior to the stated maturity thereof;

<PAGE>

                  (e) The Borrower or any  Subsidiary  (i) shall  generally  not
         pay, or shall be unable to pay, or shall admit in writing its inability
         to pay its  debts as such  debts  become  due;  or (ii)  shall  make an
         assignment  for the benefit of  creditors,  or petition or apply to any
         tribunal for the appointment of a custodian,  receiver,  or trustee for
         it or a  substantial  part of its assets;  or (iii) shall  commence any
         proceeding   under   any   bankruptcy,   reorganization,   arrangement,
         readjustment of debt, dissolution, or liquidation law or statute of any
         jurisdiction,  whether now or hereafter  in effect;  or (iv) shall have
         had any such  petition  or  application  filed  or any such  proceeding
         commenced  against  it in which an order for  relief is  entered  or an
         adjudication or appointment is made, and which remains  undismissed for
         a period of thirty (30) days or more;  or (v) shall take any  corporate
         action  indicating its consent to,  approval of, or acquiescence in any
         such  petition,  application,  proceeding,  or order for  relief or the
         appointment  of a  custodian,  receiver,  or  trustee  for  all  or any
         substantial  part of its  properties;  or (vi)  shall  suffer  any such
         custodianship,  receivership,  or trusteeship to continue  undischarged
         for a period of thirty (30) days or more;

                  (f) One or more judgments,  decrees, or orders for the payment
         of money shall be rendered  against the Borrower or any  Subsidiary and
         such judgments,  decrees,  or orders shall continue  unsatisfied and in
         effect  for a period of thirty  (30)  consecutive  days  without  being
         vacated, discharged, satisfied, or stayed or bonded pending appeal;

                  (g)  The  Security  Agreement  shall  at any  time  after  its
         execution  and  delivery and for any reason cease (a) to create a valid
         and perfected  security interest in and to the property purported to be
         subject to such Security  Agreement,  and in the priority  disclosed on
         Schedule  5.1(o);  or (b) to be in full  force  and  effect or shall be
         declared null and void, or the validity or enforceability thereof shall
         be contested  by the  Borrower,  or the Borrower  shall deny it has any
         further  liability or obligation under the Security  Agreement,  or the
         Borrower  shall fail to perform any of its material  obligations  under
         the Security Agreement;

                  (h) Any of the  following  events  shall  occur or exist  with
         respect to the Borrower or any Commonly  Controlled Entity under ERISA:
         any Reportable Event shall occur;  complete or partial  withdrawal from
         any  Multiemployer  Plan shall take place;  any Prohibited  Transaction
         shall occur; a notice of intent to terminate a Plan shall be filed,  or
         a  Plan  shall  be  terminated;  or  circumstances  shall  exist  which
         constitute  grounds  entitling  the PBGC to  institute  proceedings  to
         terminate a Plan, or the PBGC shall institute such proceedings;  and in
         each case  above,  such  event or  condition,  together  with all other
         events or  conditions,  if any,  could subject the Borrower to any tax,
         penalty,  or other  liability  which in the  aggregate  may  exceed Ten
         Thousand Dollars ($10,000); or

                  (i) If the Lender  receives  its first  notice of a  hazardous
         discharge or an  environmental  complaint  regarding  the Borrower or a
         Subsidiary  from a source other than the Borrower,  and the Lender does
         not receive  notice (which may be given in oral form,  provided same is
         followed  with all due  dispatch by written  notice  given by Certified
         Mail,  Return  Receipt  Requested)  of  such  hazardous   discharge  or
         environmental complaint from the Borrower within twenty-four (24) hours
         of the

<PAGE>

         time the Lender first receives said notice from a source other than the
         Borrower; or if any federal,  state, or local agency asserts or creates
         a Lien upon any or all of the assets, equipment,  property, leaseholds,
         or other  facilities  of the Borrower or a Subsidiary  by reason of the
         occurrence of a hazardous discharge or an environmental  complaint;  or
         if any  federal,  state,  or local agency  asserts a claim  against the
         Borrower, a Subsidiary, or its respective assets, equipment,  property,
         leaseholds,  or other  facilities for damages or cleanup costs relating
         to a  hazardous  discharge  or an  environmental  complaint;  provided,
         however, that such claim shall not constitute a default if, within five
         (5) Business Days of the occurrence  giving rise to the claim,  (i) the
         Borrower can prove to the Lender's  satisfaction  that the Borrower has
         commenced and is diligently  pursuing either:  (a) a cure or correction
         of the event which  constitutes the basis for the claim,  and continues
         diligently  to pursue  such cure or  correction  to  completion  or (b)
         proceedings   for  an  injunction,   a  restraining   order,  or  other
         appropriate  emergent  relief  preventing  such agency or agencies from
         asserting such claim,  which relief is granted within ten (10) Business
         Days of the  occurrence  giving  rise to the claim and the  injunction,
         order,  or emergent  relief is not  thereafter  resolved or reversed on
         appeal;  and (ii) in either of the foregoing  events,  the Borrower has
         posted a bond,  letter of credit,  or other  security  satisfactory  in
         form, substance, and amount to both the Lender and the agency or entity
         asserting  the  claim  to  secure  the  proper  and  complete  cure  or
         correction of the event which constitutes the basis for the claim;

                  (j) A change of  Control  of the  Borrower  or any  Subsidiary
         occurs,   including   without   limitation  any  Person  shall  acquire
         securities  representing  25% or more of the voting  securities  of the
         Borrower; then, and in any such event, the Lender may, by notice to the
         Borrower,  (i) declare its  obligation to make Loans to be  terminated,
         whereupon  the same shall  forthwith  terminate,  and (ii)  declare the
         Notes, all interest  thereon,  and all other amounts payable under this
         Agreement to be forthwith  due and payable,  whereupon  the Notes,  all
         such  interest,  and all such amounts shall become and be forthwith due
         and payable, without presentment, demand, protest, or further notice of
         any kind,  all of which are hereby  expressly  waived by the Parent and
         the Borrower.

     9.2.  Lender's  Right  to  Setoff.  Upon  the  occurrence  and  during  the
continuance of any Event of Default, the Lender is hereby authorized at any time
and from time to time,  without  notice to the  Borrower  (any such notice being
expressly  waived by the  Borrower),  to set off and  apply  any and all  funds,
deposits and accounts at any time held and other  indebtedness at any time owing
by the Lender to or for the credit or the  account of the  Borrower  against any
and all of the obligations of the Borrower now or hereafter  existing under this
Agreement or the Note or any other Loan Document, irrespective of whether or not
the Lender shall have made any demand  under this  Agreement or the Note or such
other Loan Document and although such  obligations may be unmatured.  The Lender
agrees  promptly to notify the Borrower  after any such setoff and  application,
provided  that the failure to give such notice  shall not affect the validity of
such setoff and application. The rights of the Lender under this Section 9.2 are
in addition to other rights and remedies (including,  without limitation,  other
rights of setoff) which the Lender may have.

<PAGE>

ss.10.  Miscellaneous.

         10.1.  Amendments,  Etc. No amendment,  modification,  termination,  or
waiver of any  provision of any Loan  Document to which the Borrower is a party,
nor consent to any  departure by the Borrower from any Loan Document to which it
is a party,  shall in any event be effective unless the same shall be in writing
and signed by the  Lender,  and then such waiver or consent  shall be  effective
only in the specific instance and for the specific purpose for which given.

         10.2.  Notices,  Etc. All notices given under this  Agreement and under
the other Loan  Documents  shall be in writing,  addressed to the parties as set
forth below, and shall be effective on the earliest of (i) the date received, or
(ii) if given by facsimile  transmittal on the date given if transmitted  before
5:00 p.m. the recipient's time, otherwise it is effective the next day, or (iii)
on the second business day after delivery to a major  international air delivery
or air courier service (such as Federal Express or Network Couriers):

If to the Lender:

         CAPITAL CONSULTANTS, INC.
         1050 Chinoe Road, Suite 304
         Lexington, KY 40502

With a copy (that does not constitute notice) to:

         Frank G. Dickey, Jr.
         1050 Chinoe Road, Suite 304
         Lexington, KY 40502
         Facsimile No. (859) 268-4446

If to the Borrower:

         ORANGE PRODUCTIONS, INC.
         222 Lakeview Avenue
         Suite 113
         West Palm Beach, FL 33401

With a copy (that does not constitute notice) to:

         Mintmire & Associates
         265 Sunrise Avenue, Suite 204
         Palm Beach, FL  33480
         Attn:  Donald F. Mintmire, Esq.
         Facsimile No. (561) 659-5371

     10.3.  No  Waiver.  No  failure  or  delay  on the  part of the  Lender  in
exercising  any right,  power,  or remedy  hereunder  shall  operate as a waiver
thereof;  nor shall any single or partial exercise of any such right,  power, or
remedy  preclude  any other or further  exercise  thereof or the exercise of any
other right, power, or remedy hereunder. The rights and remedies provided herein
are cumulative,  and are not exclusive of any other rights, powers,  privileges,
or remedies, now or hereafter existing, at law or in equity or otherwise.

     10.4.  Successors  and Assigns.  This  Agreement  shall be binding upon and
inure to the  benefit  of the  Borrower  and the  Lender,  and their  respective
successors and assigns,  except that the Borrower may not assign or transfer any
of its rights under any Loan  Document to which the Borrower is a party  without
the prior written consent of the Lender.

     10.5 Costs,  Expenses,  and Taxes. The Borrower agrees to pay on demand all
costs and expenses  incurred by the Lender in connection  with the  preparation,
execution,  delivery,  filing, and administration of the Loan Documents,  and of
any amendment,  modification,  or supplement to the Loan  Documents,  including,
without  limitation,  the fees and  out-of-pocket  expenses  of counsel  for the
Lender  incurred in  connection  with  advising  the Lender as to its rights and
responsibilities  hereunder.  The Borrower also agrees to pay all such costs and
expenses, including court costs,

<PAGE>

incurred in connection with enforcement of the Loan Documents, or any amendment,
modification, or supplement thereto, whether by negotiation,  legal proceedings,
or otherwise.  In addition,  the Borrower  shall pay any and all stamp and other
taxes and fees  payable  or  determined  to be payable  in  connection  with the
execution,  delivery, filing, and recording of any of the Loan Documents and the
other documents to be delivered under any such Loan Documents, and agree to hold
the Lender harmless from and against any and all liabilities  with respect to or
resulting from any delay in paying or omission to pay such taxes and fees.  This
provision shall survive termination of this Agreement.

     10.6. Integration. This Agreement and the Loan Documents contain the entire
agreement  between  the  parties  relating  to the  subject  matter  hereof  and
supersede all oral statements and prior writings with respect thereto.

     10.7. Indemnity.  The Borrower shall defend, protect,  indemnify,  and hold
harmless  the  Lender and each  Lender,  and all of their  respective  officers,
directors, employees, and Lenders (including, without limitation, those retained
in  connection   with  the   transactions   contemplated   by  this   Agreement)
(collectively,  the "Indemnitees") from and against any and all actions,  causes
of action,  suits, claims,  losses, costs,  penalties,  fees,  liabilities,  and
damages, and expenses in connection therewith  (irrespective of whether any such
Indemnitee  is a party to the  action  for which  indemnification  hereunder  is
sought),  and  including  reasonable  attorneys'  fees  and  disbursements  (the
"Indemnified  Liabilities"),  incurred  by the  Indemnitees  or any of them as a
result of, or arising out of, or relating to (a) any misrepresentation or breach
of any  representation or warranty made by the Borrower in this Agreement or any
other  Loan  Document,  or  any  other  certificate,   instrument,  or  document
contemplated hereby or thereby; or (b) any breach of any covenant, agreement, or
obligation  of the  Borrower  contained  in this  Agreement  or any  other  Loan
Document; or (c) the activities of the Borrower or any Subsidiary, each of their
respective  predecessors  in interest or third  parties with whom they or any of
them have or had a contractual  relationship,  or arising directly or indirectly
from the  violation  of any  environmental  protection,  health,  or safety law,
whether such claims are asserted by any governmental agency or any other person;
or (d) any  cause  of  action,  suit,  or claim  brought  or made  against  such
Indemnitee  and  arising  out of or  resulting  from  the  execution,  delivery,
performance, or enforcement of this Agreement or any Loan Document, or any other
instrument, document, or agreement executed pursuant hereto or thereto by any of
the Indemnities, any transaction financed or to be financed in whole or in part,
directly or  indirectly,  with the proceeds of the Loans or from the exercise of
the Warrants,  or the status of the Lender or any Lender or holder of any of the
Notes, Warrants, Conversion Shares or Warrant Shares, or as a stockholder in the
Borrower.  To the extent that the foregoing  undertaking  by the Borrower may be
unenforceable for any reason,  the Borrower shall make the maximum  contribution
to the payment and satisfaction of each of the Indemnified  Liabilities which is
permissible  under  applicable law. This indemnity shall survive  termination of
this Agreement.

     10.8.  Governing Law. This Agreement and the Note shall be governed by, and
construed in accordance with, the laws of the State of Florida.

     10.9. Severability of Provisions.  Any provision of any Loan Document which
is  prohibited  or  unenforceable  in  any  jurisdiction   (after  applying  the
provisions of paragraph 10.8 of this Agreement to that  provision)  shall, as to
such  jurisdiction,  be  ineffective  to  the  extent  of  such  prohibition  or
unenforceability  without  invalidating  the  remaining  provisions of such Loan
Document or affecting the validity or  enforceability  of such  provision in any
other jurisdiction.

<PAGE>

     10.10  Headings.  Section and paragraph  headings in the Loan Documents are
included for the  convenience  of reference only and shall not constitute a part
of the applicable Loan Documents for any other purpose.

     10.11.  Dispute  Resolution.  Any  controversy  or claim  arising out of or
relating to this  Agreement  (whether in contract or tort, or both, or at law or
in equity)  shall be  determined  by  binding  arbitration  at West Palm  Beach,
Florida,  in accordance  with the commercial  arbitration  rules of the American
Arbitration  Association.  The prevailing  party in any  arbitration  proceeding
shall be awarded  reasonable  attorneys  fees and costs of the  proceeding.  The
arbitration  award  shall be  final,  and may be  entered  in any  court  having
jurisdiction.  Nothing  in this  paragraph  shall  preclude  either  party  from
applying to a court for temporary  equitable relief,  when appropriate,  pending
and subject to such  temporary  orders and permanent  award as the arbitrator or
arbitrators may make. The parties agree that the courts of the State of Florida,
shall have exclusive  jurisdiction  and venue for the  adjudication of any civil
action  between  them  arising  out of relating  to this  Agreement,  and hereby
irrevocably consent to such jurisdiction and venue.

     IN WITNESS  WHEREOF,  the parties have caused this Agreement to be executed
by their  respective  officers  thereunto duly  authorized,  as of the Effective
Date.

The Lender:                               The Borrower:

CAPITAL CONSULTANTS, INC.                 ORANGE PRODUCTIONS, INC.

By /s/ Frank G. Dickey, Jr.               By  /s/ Sam Peroulas
Name Frank G.  Dickey, Jr.                Name  Sam Peroulas
Title President                           Title   President
Date signed October 20, 2000              Date signed October 20, 2000

<PAGE>

                                      NOTE

US$50,000.00              West Palm Beach, FL                   October 20, 2000

         FOR VALUE  RECEIVED,  on demand,  and if no demand then on December 31,
2003, the undersigned,  ORANGE  PRODUCTIONS,  INC., (the "Borrower"),  a Florida
(USA)  corporation,  whose address is 222 Lakeview  Avenue,  Suite 113,West Palm
Beach,  FL  33401,  USA,  hereby  promises  to  pay  to  the  order  of  CAPITAL
CONSULTANTS,  INC., (the "Lender"),  at the Lender's office at 1050 Chinoe Road,
Suite 304,  Lexington,  KY 40502,  in lawful  currency  of the United  States of
America and in immediately  available funds, the principal sum of FIFTY THOUSAND
DOLLARS  AND NO  CENTS  (US$50,000.00)  together  with  interest  on the  unpaid
principal  amount of this Note at the rate of TEN Percent  (10%) per year,  from
the date of this Note until paid.

         This Note is one of the Notes  referred  to in, and is  entitled to the
benefits  of, the Loan  Agreement,  dated as of October  20,  2000,  between the
Borrower  and the Lender (the "Loan  Agreement").  Terms used  herein  which are
defined  in the Loan  Agreement  shall  have their  defined  meanings  when used
herein.  The  Loan  Agreement,  among  other  things,  contains  provisions  for
acceleration  of the maturity of this Note upon the happening of certain  stated
events and also for  prepayments  on account of  principal  hereof  prior to the
maturity  of this  Note  upon the terms  and  conditions  specified  in the Loan
Agreement.  This Note is secured by a Security Agreement referred to in the Loan
Agreement,  executed by the  Borrower,  reference  to which is hereby made for a
description of the collateral provided for under the Security Agreement, and the
rights of the parties with respect thereto.

         This Note shall be governed by the laws of the State of Florida.

         The Lender or other holder of this Note is entitled,  at its option, to
convert  at any  time and from  time to time,  all or any part of the  principal
amount of the Note, plus accrued interest, into shares (the "Conversion Shares")
of the Borrower's common stock,  $0.001 par value ("Common Stock").  No fraction
of  shares  or  scrip  representing  fractions  of  shares  will  be  issued  on
conversion,  but the number of shares  issuable  shall be rounded to the nearest
whole  share.  To  convert  this  Note,  this  Note must be  surrendered  at the
principal  executive office of the Escrow Lender pursuant to an Escrow Agreement
between the  Company and CAPITAL  CONSULTANTS,  INC.,  dated  October 20,  2000,
accompanied by written notice of conversion substantially in the form of Exhibit
A to this Note, with appropriate insertions.  The date upon which the conversion
shall be  effective  (the  "Conversion  Date") shall be deemed to be the date on
which the Lender or other holder has delivered  this Note,  with the  conversion
notice duly executed to Escrow Holder, or if earlier, the date set forth in such
notice of conversion if the Note and such  conversion  notice is received by the
Escrow Holder within three (3) business days  therefrom.  The Escrow Holder will
deliver  certificates  representing  the  Conversion  Shares  within  three  (3)
business days following receipt of the Note and conversion notice. The price per
share of Common  Stock  into  which this Note is  convertible  (the  "Conversion
Price") shall be US$0.60.

         The  Borrower is  obligated  to register the issuance and resale of the
Conversion Shares under the Securities Act of 1933, as amended,  pursuant to the
terms of the Registration  Rights Agreement  between the Borrower and the Lender
referred to in the Loan Agreement.

<PAGE>

         Any  controversy  or claim  arising  out  of  or  relating to this Note
(whether  in  contract  or  tort,  or  both,  or at law or in  equity)  shall be
determined by binding  arbitration  at West Palm Beach,  Florida,  in accordance
with the commercial  arbitration rules of the American Arbitration  Association.
The prevailing party in any arbitration  proceeding shall be awarded  reasonable
attorneys  fees and costs of the  proceeding.  The  arbitration  award  shall be
final,  and may be entered  in any court  having  jurisdiction.  Nothing in this
paragraph  shall  preclude  either party from  applying to a court for temporary
equitable relief, when appropriate, pending and subject to such temporary orders
and permanent  award as the  arbitrator  or  arbitrators  may make.  The parties
hereby  consent  to the  exclusive  jurisdiction  of the  courts of the State of
Florida for that purpose.

                                       ORANGE PRODUCTIONS, INC.

                                       By  /s/ Sam Peroulas
                                       Name  Sam Peroulas
                                       Title   President
                                       Date signed October 20, 2000

<PAGE>

                               SECURITY AGREEMENT

         This  Security   Agreement,   Pledge  and  Assignment  (this  "Security
Agreement")  dated and  effective  as of  October  20,  2000,  is made by ORANGE
PRODUCTIONS,  INC. (the "Borrower"),  a Florida  corporation,  as the debtor, to
CAPITAL CONSULTANTS,  INC. (the "Lender"), a Kentucky corporation as the secured
party, in connection with the Loan Agreement (as hereinafter defined).

PRELIMINARY STATEMENTS:

         (1) The  Borrower  and the  Lender  have made and  entered  into a Loan
Agreement  (as  it  now  exists  or  subsequently  may be  modified,  the  "Loan
Agreement")  effective  as  of  October  20,  2000.  The  Borrower  will  derive
substantial  direct and indirect benefit from the  transactions  contemplated by
the Loan Agreement.

         (2) It is a  condition  precedent  to the making of Loans by the Lender
under the Loan  Agreement  that the  Borrower  shall  have made the  pledge  and
granted the  assignment  and security  interest  contemplated  by this  Security
Agreement.

         (3) All  capitalized  terms  used  but  not  defined  in this  Security
Agreement shall have the meanings ascribed to them in the Loan Agreement.

         NOW, THEREFORE, in consideration of the premises and in order to induce
the Lender to make Loans under the Loan  Agreement,  the Borrower  hereby agrees
with the Lender as follows:

         Section 1.01.  Pledge,  Assignment and Grant of Security.  The Borrower
hereby  assigns  and pledges to the  Lender,  and hereby  grants to the Lender a
security interest in all of the Borrower's  right,  title and interest in and to
the following, whether now owned or hereafter acquired (the "Collateral"):

         (1) All equipment in all its forms,  wherever located, now or hereafter
existing, all fixtures and all parts thereof and all accessions thereto (any and
all such equipment, fixtures, parts, and accessions being the "Equipment");

         (2)  All  inventory  in all  of its  forms,  wherever  located,  now or
hereafter  existing and raw  materials  and work in process  therefor,  finished
goods thereof,  and materials used or consumed in the  manufacture or production
thereof;  (b) goods in which the  Borrower has an interest in mass or a joint or
other interest or right of any kind  (including,  without  limitation,  goods in
which the Borrower has an interest or right as  consignee);  and (c) goods which
are returned to or repossessed by the Borrower),  and all accessions thereto and
products thereof and documents therefor (any and all such inventory, accessions,
products, and documents being the "Inventory"); and

         (3) All accounts,  contract rights, chattel paper and instruments,  now
or hereafter  existing,  whether or not arising out of or in connection with the
sale or lease of goods or the  rendering  of  services,  and all  rights  now or
hereafter  existing  in  and to  all  security  agreements,  leases,  and  other
contracts securing or otherwise relating to any such accounts,  contract rights,
chattel  paper and  instruments  (any and all such  accounts,  contract  rights,
chattel paper and  instruments,  being the  "Receivables",  and any and all such
leases, security agreements, and other contracts being the "Related Contracts");

<PAGE>

         (4) All proceeds of any and all of the foregoing Collateral (including,
without limitation, proceeds which constitute property of the types described in
clauses (1) through (4) of this Section 1.01),  and, to the extent not otherwise
included,  all (a) payments  under  insurance  (whether or not the Lender is the
loss payee thereof), or any indemnity,  warranty, or guaranty, payable by reason
of  loss  or  damage  to or  otherwise  with  respect  to any  of the  foregoing
Collateral, and (b) cash.

         Section 2.01. Security for Obligations. This Security Agreement secures
the payment for all obligations of the Borrower now or hereafter  existing under
the Loan Agreement, the Notes and the Registration Rights Agreement, whether for
principal,  interest,  fees, expenses, or otherwise,  and all obligations of the
Borrower now or hereafter existing under this Security Agreement  (collectively,
the  "Obligations").  Without  limiting the  generality of the  foregoing,  this
Security  Agreement  secures the payment of all amounts which constitute part of
the Obligations and would be owed by the Borrower to the Lender under any of the
Loan  Documents  but for the fact that they are  unenforceable  or not allowable
owing to the existence of  bankruptcy,  reorganization,  or similar  proceedings
involving the Borrower.

         Section 3.01. Borrower Remains Liable.  Anything herein to the contrary
notwithstanding,  (1) the Borrower  shall remain  liable under the contracts and
agreements included in the collateral to the extent set forth therein to perform
all of its  duties  and  obligations  thereunder  to the same  extent as if this
Security Agreement had not been excluded;  (2) the exercise by the Lender of any
rights  hereunder  shall not  release  the  Borrower  from any of its  duties or
obligations under the contracts and agreements  included in the Collateral;  and
(3) the Lender shall not have any  obligation  or liability  under the contracts
and agreements  included in the Collateral by reason of this Security Agreement,
nor shall the Lender be obligated to perform any of the obligations or duties of
the  Borrower  thereunder  or to take any action to collect or enforce any claim
for payment assigned hereunder.

         Section 4.01. Representations  and Warranties.  The Borrower represents
and warrants as follows:

         (1) All of the  Equipment  and  Inventory  are  located  at the  places
specified in Schedule I hereto.  The chief place of business and chief executive
office of the  Borrower  and the office  where the  Borrower  keeps its  records
concerning the Receivables, and the originals of all chattel paper that evidence
Receivables,  and the original copies of the Assigned Agreements, are located at
its address  specified in Section 17.01. None of the Receivables is evidenced by
a promissory note or other instrument.

         (2) The Borrower is the legal and  beneficial  owner of the  Collateral
free and clear of any Lien except for (i) the security  interest created by this
Security Agreement, and (ii) the security interests described in Schedule II. No
effective  financing  statement or other document similar in effect covering all
or any part of the  Collateral  is on file in any recording  office,  except (i)
such as may have been filed in favor of the  Lender  relating  to this  Security
Agreement,  and (ii) the  financing  statements  described  in Schedule  II. The
Borrower has no trade names except as set forth on Schedule III.

         (3) Except as  provided  on  Schedule  I, the  Borrower  has  exclusive
possession and control of the Equipment and Inventory.

         (4) Except as set forth on Schedule I, this Security  Agreement creates
a valid and  perfected  first  priority  security  interest  in the  Collateral,
securing  the payment of the  Obligations,  and all  filings  and other  actions
necessary or desirable to perfect and protect such  security  interest have been
duly taken.

<PAGE>

         (5) The Borrower is a corporation duly incorporated,  validly existing,
and in good standing under the laws of the  jurisdiction  of its  incorporation;
has the  corporate  power and  authority  to own its assets and to transact  its
business,  and is duly  qualified  and in good  standing  under the laws of each
jurisdiction in which qualification is required.

         (6) The  execution  and  performance  by the Borrower of this  Security
Agreement have been duly authorized by all necessary corporate action and do not
and will not (a) require any consent or approval of the Borrowers  stockholders;
(b) contravene the  Borrower's  charter or bylaws;  (c) violate any provision of
any law,  rule,  or  regulation;  or (d) result in a breach of or  constitute  a
default  under any indenture or loan or Loan  Agreement or any other  agreement,
lease,  or  instrument  to which the  Borrower  is a party or by which it or its
properties may be bound or affected.

         (7) This Security Agreement is the legal, valid, and binding obligation
of the Borrower,  enforceable in accordance with its respective terms, except to
the  extent  that such  enforcement  may be limited  by  applicable  bankruptcy,
insolvency, and other similar laws affecting creditors' rights generally.

         (8) No  consent  of any other  person or entity  and no  authorization,
approval,  or other action by, and no notice to or filing with, any governmental
authority or  regulatory  body is required (a) for the pledge by the Borrower of
the Security Collateral  pursuant to this Security  Agreement,  for the grant by
the Borrower of the assignment and security  interest  granted hereby or for the
execution,  delivery, or performance of this Security Agreement by the Borrower;
(b) for the perfection or maintenance  of the pledge,  assignment,  and security
interest  created hereby  (including  the first priority  nature of such pledge,
assignment, and security interest); or (c) for the exercise by the Lender of the
voting or other rights  provided for in this Security  Agreement or the remedies
in respect of the Collateral  pursuant to this Security Agreement (except as may
be required in connection  with the  disposition  of any portion of the Security
Collateral by laws affecting the offering and sale of securities generally).

         (9) The Inventory has been produced by the Borrower in compliance  with
all requirements of the Fair Labor Standards Act.

         (10) There are no  conditions  precedent to the  effectiveness  of this
Security Agreement that have not been satisfied or waived.

         (11) The Borrower  has,  independently  and without  reliance  upon the
Lender and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Security Agreement.

         Section 5.01. Further Assurances.

         (1) The Borrower  agrees that from time to time,  at the expense of the
Borrower, the Borrower will promptly execute and deliver all further instruments
and documents,  and take all further action, that may be necessary or desirable,
or that the Lender may reasonably  request,  in order to perfect and protect any
pledge,  assignment  or security  interest  granted or  purported  to be granted
hereby or to enable the Lender to exercise  and enforce its rights and  remedies
hereunder with respect to any Collateral. Without limiting the generality of the
foregoing,  the Borrower  will execute and file such  financing or  continuation
statements, or amendments thereto, and such other instruments or notices, as may
be necessary or desirable, or as the Lender may request, in order to perfect and
preserve the pledge,  assignment,  and security interest granted or purported to
be granted hereby.

<PAGE>

         (2) The  Borrower  hereby  authorizes  the  Lender  to file one or more
financing or continuation statements, and amendments thereto, relating to all or
any part of the Collateral without the signature of the Borrower where permitted
by law. A photocopy  or other  reproduction  of this  Security  Agreement or any
financing  statement  covering  the  Collateral  or any  part  thereof  shall be
sufficient as a financing statement where permitted by law.

         (3)  The  Borrower  will  furnish  to the  Lender  from  time  to  time
statements and schedules  further  identifying and describing the Collateral and
such  other  reports  in  connection  with  the  Collateral  as the  Lender  may
reasonably request, all in reasonable detail.

         Section 6.01. As to Equipment and Inventory.

         (1) The Borrower  shall keep the Equipment  and  Inventory  (other than
Inventory  sold in the  ordinary  course of  business)  at the  places  therefor
specified  in  Section  4.01(1)  or,  upon 10 days prior  written  notice to the
Lender,  at such other  places in a  jurisdiction  where all action  required by
Section 5.01 shall have been taken with respect to the Equipment and Inventory.

         (2) The  Borrower  shall  cause  the  Equipment  to be  maintained  and
preserved in the same condition, repair, and working order as when new, ordinary
wear and tear excepted,  and in accordance with any  manufacturer's  manual, and
shall forthwith, or in the case of any loss or damage to any of the Equipment as
quickly as practicable  after the occurrence  thereof,  make or cause to be made
all repairs,  replacements, and other improvements in connection therewith which
are necessary or desirable to such end. The Borrower shall  promptly  furnish to
the Lender a statement respecting any loss or damage to any of the Equipment.

         (3) The  Borrower  shall pay  promptly  when due all property and other
taxes,  assessments,  and  governmental  charges or levies imposed upon, and all
claims  (including  claims for labor,  materials,  and  supplies)  against,  the
Equipment and Inventory.  In producing the Inventory,  the Borrower shall comply
with all requirements of the Fair Labor Standards Act.

         Section 7.01. Insurance.

         (1) the Borrower  shall,  at its own expense,  maintain  insurance with
respect to the Equipment and Inventory in such amounts,  against such risks,  in
such form and with such insurers,  as shall be  satisfactory  to the Lender from
time to time. The Borrower's  current  insurers are  satisfactory to the Lender.
Each policy for liability  insurance  shall provide for all losses to be paid on
behalf of the Lender and the Borrower as their  respective  interests may appear
and each  policy for  property  damage  insurance  shall  provide for all losses
(except for losses of less than $10,000 per  occurrence)  to be paid directly to
the Lender.  Each such policy  shall in addition  (a) name the  Borrower and the
Lender as insured parties thereunder  (without any representation or warranty by
or obligation  upon the Lender) as their  interests may appear;  (b) contain the
agreement by the insurer that any loss thereunder shall be payable to the Lender
notwithstanding any action, inaction, or breach of representation or warranty by
the Borrower; (c) provide that there shall be no recourse against the Lender for
payment of premiums or other amounts with respect thereto;  and (d) provide that
at least ten days prior  written  notice of  cancellation  or of lapse  shall be
given to the Lender by the insurer.  The Borrower  shall, if so requested by the
Lender,  deliver to the Lender original or duplicate  policies of such insurance
and,  as often as the Lender may  reasonably  request,  a report of a  reputable
insurance broker with respect to such insurance. Further, the Borrower shall, at
the request of the Lender, duly execute and deliver instruments of assignment of
such  insurance  policies to comply with the  requirements  of Section  6.01 and
cause the insurers to acknowledge notice of such assignment.

<PAGE>

         (2)  Reimbursement  under any  liability  insurance  maintained  by the
Borrower  pursuant to this Section  7.01 may be paid  directly to the person who
shall have incurred  liability  covered by such  insurance.  In case of any loss
involving  damage to Equipment or Inventory when  subsection (3) of this Section
7.01 is not  applicable,  the  Borrower  shall  make  or  cause  to be made  the
necessary  repairs to or  replacements  of such Equipment or Inventory,  and any
proceeds of insurance  maintained by the Borrower  pursuant to this Section 7.01
shall be paid to the Borrower as reimbursement  for the costs of such repairs or
replacements.

         (3) Upon (a) the occurrence and during the  continuance of any Event of
Default,  or (b) the actual or  constructive  total loss (in excess of US$10,000
per occurrence) of any Equipment or Inventory, all insurance payments in respect
of such  Equipment  or  Inventory  shall be paid to and applied by the Lender as
specified in Section 13.01(2).

         Section 8.01. Place of Perfection; Records, Collection of Receivables.

         (1) The  Borrower  shall  keep its chief  place of  business  and chief
executive  office  and the  office  where it keeps its  records  concerning  the
Receivables,  and  the  original  copies  of the  Assigned  Agreements  and  the
originals  of all  chattel  paper that  evidence  Receivables,  at the  location
therefor  specified in Section  4.01(1) or, upon 30 days prior written notice to
the Lender, at any other locations in a jurisdiction  where all actions required
by Section  6.01 shall have been  taken  with  respect to the  Receivables.  The
Borrower will hold and preserve such records,  Assigned  Agreements  and chattel
paper and will permit  representatives  of the Lender at any time during  normal
business  hours to inspect  and make  abstracts  from such  records  and chattel
paper.

         (2) Except as otherwise  provided in this  subsection (2), the Borrower
shall continue to collect, at its own expense,  all amounts due or to become due
the Borrower under the  Receivables.  In connection with such  collections,  the
Borrower may take (and,  at the Lender's  direction,  shall take) such action as
the Borrower or the Lender may deem necessary or advisable to enforce collection
of the Receivables: provided, however, that the Lender shall have the right upon
the  occurrence  and during the  continuance  of an Event of Default or an event
which,  with the giving of notice or the lapse of time, or both, would become an
Event of Default and upon written  notice to the Borrower of its intention to do
so, to notify the  account  debtors or  obligors  under any  Receivables  of the
assignment  of such  Receivables  to the  Lender  and  subject  to any  priority
interests of other secured  creditors to direct such account debtors or obligors
to make payment of all amounts due or to become due to the  Borrower  thereunder
directly  to the Lender  and upon such  notification  and at the  expense of the
Borrower, to enforce collection of any such Receivables,  and to adjust, settle,
or compromise the amount or payment thereof,  in the same manner and to the same
extent as the  Borrower  might have done.  After  receipt by the Borrower of the
notice from the Lender referred to in the proviso to the preceding sentence, (a)
all amounts and  proceeds  (including  instruments)  received by the Borrower in
respect of the  Receivables  shall be  received  in trust for the benefit of the
Lender  hereunder,  shall be segregated  from other funds of the  Borrower,  and
shall be forthwith paid over to the Lender in the same form as so received (with
any necessary endorsement) to be held as cash collateral and either (i) released
to the  Borrower  so long as no Event of  Default  shall  have  occurred  and be
continuing  or  (ii)  if  any  Event  of  Default  shall  have  occurred  and be
continuing,  applied as provided by Section 13.01(2), and (b) the Borrower shall
not  adjust,  settle,  or  compromise  the amount or payment of any  Receivable,
release  wholly or partly any account  debtor or obligor  thereof,  or allow any
credit or discount thereon.

<PAGE>

         Section 9.01. Transfers and Other Liens; Additional Shares.

         (1) The  Borrower  shall not (a) sell,  assign (by  operation of law or
otherwise), or otherwise dispose of, or grant any option with respect to, any of
the  Collateral,  except  Inventory in the ordinary  course of business,  or (b)
create  or  permit  to  exist  any  Lien  upon  or  with  respect  to any of the
Collateral, except for the security interest under this Security Agreement.

         Section 10.01. Lender Appointed  Attorney-In-Fact.  The Borrower hereby
irrevocably  appoints  the Lender  the  Borrower's  attorney-in-fact,  with full
authority in the place and stead of the Borrower and in the name of the Borrower
or otherwise,  from time to time in the Lender's discretion,  to take any action
and to execute any  instrument  which the Lender may deem necessary or advisable
to accomplish the purposed of this Security  Agreement (subject to the rights of
the Borrower under Section 8.01), including,  without limitation, upon five days
notice to the Borrower:

          (1) To obtain and adjust  insurance  required to be paid to the Lender
pursuant to Section 8.01;

          (2) To ask, demand, collect, sue for, recover, compromise, receive and
give  acquittance  and  receipts  for  moneys  due and to become due under or in
connection with the Collateral;

          (3) To receive,  endorse, and collect any drafts or other instruments,
documents, and chattel paper, in connection therewith; and

          (4) To file any claims or take any action or institute any proceedings
which the Lender may deem  necessary or desirable  for the  collection of any of
the  Collateral or otherwise to enforce the rights of the Lender with respect to
any of the Collateral.

         Section 11.01. Lender May Perform. If the Borrower fails to perform any
agreement  contained herein, the Lender may itself perform, or cause performance
of,  such  agreement,  and the  expenses of the Lender  incurred  in  connection
therewith shall be payable by the Borrower under Section 14.01 (2). 5 days after
notice and failure

         Section 12.01.  The Lenders Duties.  The powers conferred on the Lender
hereunder  are solely to protect its  interest in the  Collateral  and shall not
impose any duty upon it to exercise any such powers. Except for the safe custody
of any  Collateral in its  possession  and the  accounting  for moneys  actually
received by it hereunder, the Lender shall have no duty as to any Collateral, as
to ascertaining or taking action with respect to calls, conversions,  exchanges,
maturities,  tenders,  or other  matters  relative to any  Security  Collateral,
whether or not the Lender has or is deemed to have knowledge of such matters, or
as to the taking of any necessary steps to preserve rights against prior parties
or any other rights pertaining to any Collateral.  The Lender shall be deemed to
have exercised reasonable care in the custody and preservation of any Collateral
in its possession if such Collateral is accorded treatment  substantially  equal
to that which it accords its own property.

         Section 13.01 Remedies. If any Event of Default shall have occurred and
be continuing:

         (1) The Lender may exercise in respect of the  collateral,  in addition
to other rights and remedies  provided for herein or otherwise  available to it,
all the rights and  remedies  of a secured  party on default  under the  Uniform
Commercial  Code in  effect  in the State of  Delaware  at that time (the  Code)
(whether or not the Code applies to the affected  Collateral),  and also may (a)
require the  Borrower  to, and the  Borrower  hereby  agrees that it will at its
expense and upon  request of the Lender  forthwith,  assemble all of part of the
Collateral  as directed by the Lender and make it  available  to the Lender at a
place to be  designated  by the Lender which is  reasonably  convenient  to both
parties  and (b) upon  five day  notice to the  Borrower  (except  as  specified
below), sell the Collateral or any part thereof in one or more parcels at public
or private  sale,  at any of the Lender's  offices or  elsewhere,  for cash,  on
credit or for future delivery,  and upon such other terms as the Lender may deem
commercially reasonable. The Borrower agrees that, to the extent notice of sale

<PAGE>

shall be required  by law, at least ten days notice to the  Borrower of the time
and place of any public sale or the time after  which any private  sale is to be
made shall constitute reasonable notification. the Lender shall not be obligated
to make any sale of  Collateral  regardless of notice of sale having been given.
The  Lender  may  adjourn  any  public  or  private  sale  from  time to time by
announcement  at the time and place fixed therefor,  and such sale may,  without
further notice, be made at the time and place to which it was so adjourned.

         (2) Any cash held by the  Lender as  Collateral  and all cash  proceeds
received  by the  Lender in respect of any sale of,  collection  from,  or other
realization upon all or any part of the Collateral may, in the discretion of the
Lender,  be held by the  Lender  as  Collateral  for,  and/or  then or any  time
thereafter  be  applied  (after  payment  of any  amounts  payable to the Lender
pursuant to Section 19.01) in whole or in part by the Lender against, all or any
part of the Obligations in such order as the Lender shall elect.  Any surplus of
such cash or cash  proceeds  held by the Lender and  remaining  after payment in
full of all the Obligations  shall be paid over to the Borrower or to whomsoever
may be lawfully entitled to receive such surplus.

         (3) The Lender may  exercise  any and all  rights and  remedies  of the
Borrower  under or in  connection  with the Assigned  Agreements or otherwise in
respect of the Collateral,  including, without limitation, any and all rights of
the  Borrower to demand or otherwise  require  payment of any amount  under,  or
performance of any provision of, any Assigned Agreement.

         (4) All payments  received by the Borrower under or in connection  with
any  Assigned  Agreement  or  otherwise  in respect of the  Collateral  shall be
received in trust for the benefit of the Lender,  shall be segregated from other
funds of the Borrower and shall be forthwith paid over to the Lender in the same
form as so received (with any necessary endorsement).

         Section 14.01. Indemnity and Expenses.

         (1) The Borrower  agrees to  indemnify  the Lender from and against any
and all claims,  losses, and liabilities  (including  reasonable  attorney fees)
growing out of or resulting  from this Security  Agreement  (including,  without
limitation,  enforcement of this Security Agreement),  except claims, losses, or
liabilities resulting from the Lender's gross negligence or willful misconduct.

         (2) The  Borrower  will upon demand pay to the Lender the amount of any
and all reasonable  expenses,  including the reasonable fees and expenses of its
counsel and of any experts and Lenders, which the Lender may incur in connection
with  (a)  the  administration  of this  Security  Agreement;  (b) the  custody,
preservation,  use or operation  of, or the sale of,  collection  from, or other
realization upon, any of the Collateral;  (c) the exercise or enforcement of any
of the rights of the Lender  hereunder;  or (d) the  failure by the  Borrower to
perform or observe any of the provisions hereof.

         Section 15.01. Security Interest Absolute. All rights of the Lender and
the pledge,  assignment, and security interest hereunder, and all obligations of
the Borrower hereunder, shall be absolute and unconditional, irrespective of:

         (1) Any lack of validity,  regularity,  or  enforceability  of the Loan
Agreement, the Notes or any other agreement or instrument relating thereto;

         (2) Any change in the time,  manner,  or place of payment of, or in any
other term of, all or any of the  Obligations,  or any other amendment or waiver
of or any  consent  to any  departure  from the  Loan  Agreement  or the  Notes,
including,  without limitation,  any increase in Obligations  resulting from the
extension of  additional  credit to the Borrower or any of its  Subsidiaries  or
otherwise.

<PAGE>

         (3) Any  taking,  exchange,  release,  or  nonperfection  of any  other
collateral,  or any taking,  release,  or  amendment  or waiver of or consent to
departure from any guaranty, for all or any of the Obligations;

         (4) Any manner of application of Collateral,  or proceeds  thereof,  to
all or any of the Obligations, or any manner of sale or other disposition of any
Collateral for all or any of the Obligations or any other assets of the Borrower
or any of its subsidiaries;

         (5)  Any  change,  restructuring,  or  termination  of   the  corporate
structure or existence of the Borrower or any of its subsidiaries; or

         (6) Any other circumstance  which might otherwise  constitute a defense
available to, or a discharge of, the Borrower.

         Section   16.01.   Amendments;   Etc.   No   amendment,   modification,
termination,  or waiver of any  provision  of this  Security  Agreement,  and no
consent  to any  departure  by the  Borrower  herefrom,  shall  in any  event be
effective unless the same shall be in writing and signed by the Lender, and then
such waiver or consent shall be effective only in the specific  instance and for
the specific purpose for which given.

         Section  17.01.  Addresses  for Notices.  All notices  given under this
Security  Agreement  shall be in writing,  addressed to the parties as set forth
below, and shall be effective on the earliest of (i) the date received,  or (ii)
if given by facsimile  transmittal on the date given if transmitted  before 5:00
p.m. the recipient=s  time,  otherwise it is effective the next day, or (iii) on
the second business day after delivery to a major  international air delivery or
air courier service (such as Federal Express or Network Couriers):

If to the Lender:                          If to the Borrower:

CAPITAL CONSULTANTS, INC.                  ORANGE PRODUCTIONS, INC.
1050 Chinoe Road, Suite 304                222 Lakeview Avenue, Suite 113
Lexington, KY 40502                        West Palm Beach, FL    33401

With a copy (that does not constitute      With a copy (that does not constitute
         notice) to:                                notice) to:

                                           Mintmire & Associates
         Frank G. Dickey, Jr.              265 Sunrise Avenue, Suite 204
         1050 Chinoe Road, Suite 304       Palm Beach, FL  33480
         Lexington, KY 40502               Attn:  Donald F. Mintmire, Esq.
         Facsimile No. (859) 268-4446      Facsimile No. (561) 659-5371

         Section 18.01.  Continuing  Security  Interest;  Assignments Under Loan
Agreement.  This Security Agreement shall create a continuing  security interest
in the  Collateral  and shall (1) remain in full force and effect  until (a) the
payment in full of the  Obligations  and all other  amounts  payable  under this
Security  Agreement,  and (b) the expiration or termination of any obligation of
the Lender to make Loans;  (2) be binding upon the Borrower,  its successors and
assigns;  and (3) inure to the benefit of, and be enforceable by, the Lender and
its successors, transferees, and assigns. Without limiting the generality of the
foregoing  clause (3),  the Lender may assign or  otherwise  transfer all or any
portion of its  rights  and  obligations  under the Loan  Agreement  (including,
without limitation,

<PAGE>

all or any portion of any Notes held by it) to any other  person or entity,  and
such other person or entity shall thereupon  become vested with all the benefits
in respect thereof granted to the Lender herein or otherwise.  Upon the later of
the payment in full of the  Obligations and all other amounts payable under this
Security  Agreement and the  expiration or  termination of any obligation of the
Lender to make Loans,  the security  interest granted hereby shall terminate and
all  rights  to the  Collateral  shall  revert  to the  Borrower.  Upon any such
termination,  the Lender will, at the Borrower's expense, execute and deliver to
the Borrower such documents as the Borrower shall reasonably request to evidence
such termination.

         Section 19.01.  Governing Law; Terms. This Security  Agreement shall be
governed by and construed in  accordance  with the laws of the State of Florida,
except: (a) if any provision of this Security  Agreement is unenforceable  under
Florida law but is enforceable under the laws of the U.S. State of Florida, then
Florida law shall govern the construction and enforcement of that provision; and
(b) the validity or perfection of the security interest  hereunder,  or remedies
hereunder,  in respect of any  particular  Collateral  shall be  governed by the
Uniform Commercial Code as adopted in Florida.  Unless otherwise defined in this
Security Agreement or in the Loan Agreement,  terms used in Article 9 of the UCC
are used herein as therein defined.

         Section 20.01. Dispute Resolution. Any controversy or claim arising out
of or relating to this  Agreement  (whether in contract or tort,  or both, or at
law or in equity) shall be determined by binding arbitration at Toronto, Canada,
in accordance with the commercial arbitration rules of the International Chamber
of Commerce. The prevailing party in any arbitration proceeding shall be awarded
reasonable  attorneys fees and costs of the proceeding.  The  arbitration  award
shall be final, and may be entered in any court having jurisdiction.  Nothing in
this  paragraph  shall  preclude  either  party  from  applying  to a court  for
temporary  equitable  relief,  when  appropriate,  pending  and  subject to such
temporary  orders and permanent award as the arbitrator or arbitrators may make.
The parties  hereby consent to the exclusive  jurisdiction  of the courts of the
State of Florida for that purpose.

          IN WITNESS WHEREOF, the parties have caused this Security Agreement to
be executed by their respective  officers  thereunto duly authorized,  as of the
date first above written.

The Lender:                               The Borrower:

CAPITAL CONSULTANTS, INC.                 ORANGE PRODUCTIONS, INC.

By /s/ Frank G. Dickey, Jr.               By  /s/ Sam Peroulas
Name Frank G.  Dickey, Jr.                Name  Sam Peroulas
Title President                           Title   President
Date signed October 20, 2000              Date signed October 20, 2000

<PAGE>

                                   SCHEDULE I

                                     Part 1

<PAGE>

                                   Schedule II

                      Locations of Equipment and Inventory

<PAGE>

                                   SCHEDULE II

     Description of Other Liens, Security Interests and Financing Statements

<PAGE>

                                  SCHEDULE III

                      Description of Borrower=s Trade Names

<PAGE>

                                   EXHIBIT "A"

                              NOTICE OF CONVERSION

           (To be executed by the Holder in order to Convert the Note)

TO ORANGE PRODUCTIONS, INC.

     The undersigned hereby irrevocably elects to convert  $________________  of
the principal  amount of the attached Note into Shares of Common Stock of ORANGE
PRODUCTIONS,  INC.  according  to  the  conditions  stated  therein,  as of  the
Conversion Date written below.

Conversion Date

Applicable Conversion Price

Signature
Name __________________________________________________________

Address:

<PAGE>

                          REGISTRATION RIGHTS AGREEMENT

     THIS REGISTRATION  RIGHTS AGREEMENT (this  "Agreement") is made and entered
into as of October 20, 2000, by and between Orange Productions,  Inc., a Florida
corporation (the "Company"),  and Capital Consultants,  Inc. (the "Lender"), for
itself and certain  lenders  (the  "Lenders")  described  in the Loan  Agreement
defined below..

                             Preliminary Statements

     In connection  with the  consummation of the  transactions  contemplated by
that  certain  Loan  Agreement   (including  all  exhibits  thereto,  the  "Loan
Agreement") of even date herewith by and between the Company and the Lender, the
Company has agreed,  upon the terms and  subject to the  conditions  of the Loan
Agreement, at the option of the Lender or other holders of the Notes (as defined
in the Loan Agreement), to convert the Notes into shares of the Company's Common
Stock (the "Conversion Shares").

     To induce the Lender to execute and deliver the Loan  Agreement and to make
Loans thereunder,  the Company has agreed,  pursuant to the terms and conditions
of this Agreement,  to provide certain  registration  rights with respect to the
Registrable Securities.

                                    Agreement

     In consideration of the foregoing,  the mutual covenants and conditions set
forth in this  Agreement  and for other  good and  valuable  consideration,  the
receipt and sufficiency of which are hereby acknowledged, the parties, intending
to become legally bound, hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     As used in this  Agreement,  the  following  terms shall have the following
respective meanings:

     "Lender" shall mean Capital Consultants, Inc.

     "Agreement" shall mean this Registration Rights Agreement.

     "Commission" shall mean the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

     "Conversion  Shares"  shall have the  meaning  ascribed to such term in the
Preliminary Statements to this Agreement.

     "Company" shall mean Orange Productions, Inc., a Florida company.

     "Exchange Act" shall mean the Securities  Exchange Act of 1934, as amended,
or  any  successor  federal  statute,  and  the  rules  and  regulations  of the
Commission thereunder, all as in effect from time to time.

     "Filing  Deadline" shall have the meaning  ascribed to such term in Section
2.1 of this Agreement.

                                        1

<PAGE>

     "Holder" or  "Holders"  shall mean (a) the  Lender,  to the extent that the
Lender holds  Registrable  Securities,  and (b) any Person  holding  Registrable
Securities  as a transferee  of the Lender  (directly or  indirectly,  including
subsequent transfers).

     "Loan  Agreement"  shall  have the  meaning  ascribed  to such  term in the
Preliminary Statements to this Agreement.

     "Person"  shall  mean  any  individual,  corporation,   partnership,  joint
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

     The terms  "register,"  "registered"  and  "registration"  shall refer to a
registration  effected by preparing and filing with the  Commission  one or more
registration  statements covering Registrable  Securities in compliance with the
Registrable  Securities  Act  that  is  declared  or  ordered  effective  by the
Commission.

     " Registrable  Securities" shall mean the Conversion Shares, and any shares
of capital stock issued or issuable with respect to the Conversion  Shares, as a
result of any stock split, stock dividend, recapitalization, exchange or similar
event;  provided,  however,  that such Registrable  Securities shall cease to be
Registrable  Securities  when (a) a registration  statement with respect to such
Registrable  Securities shall have been declared effective under the Registrable
Securities  Act and such  Registrable  Securities  shall have been  disposed  of
pursuant to the  registration  statement,  (b) such  Registrable  Securities are
distributed to the public pursuant to Rule 144(k) (or any successor  provisions)
promulgated  under the Securities Act or (c) such  Registrable  Securities shall
have ceased to be outstanding.

     "Registration  Deadline"  shall have the  meaning  ascribed to such term in
Section 2.1 of this Agreement.

     "Registration Expenses" shall mean all expenses incurred in order to comply
with Article II hereof,  including,  without  limitation,  all  registration and
filing  fees,  printing  expenses,  fees and  disbursements  of counsel  for the
Company,  reasonable fees and  disbursements of one (1) counsel for the Holders,
blue sky fees and expenses, and the expense of any special audits incident to or
required by any such  registration,  but excluding the  compensation  of regular
employees  of the Company  (which shall be paid in any event by the Company) and
excluding Selling Expenses.

     "Restricted  Registrable Securities" shall mean Registrable Securities that
are  "restricted  Registrable  Securities"  as  defined  in Rule 144  under  the
Securities Act.

     "Registrable  Securities"  shall have the meaning  ascribed to such term in
the Preliminary Statements to this Agreement.

     "Securities  Act" shall mean the  Registrable  Securities  Act of 1933,  as
amended, or any successor federal statute,  and the rules and regulations of the
Commission thereunder, all as in effect from time to time.

     "Selling  Expenses"  shall  mean all  underwriting  discounts  and  selling
commissions  incurred  in  connection  with the sale of  Registrable  Securities
pursuant to a registration effected hereunder.

                                        2

<PAGE>

     Capitalized  terms used in this Agreement and not otherwise  defined herein
shall have the respective meanings ascribed to such terms in the Loan Agreement.

                                   ARTICLE II
                               REGISTRATION RIGHTS

     Section 2.1  Mandatory Registration.

         (a) The Company shall prepare and file with the Commission within sixty
     (60)  days  from the  date of this  Agreement  (the  "Filing  Deadline")  a
     registration statement or registration statements (as is necessary) on Form
     S-3  covering  the  issuance  and  the  resale  of all  of the  Registrable
     Securities. Such registration statement shall initially register for resale
     at least  2,000,000  Conversion  Shares.  The  Company  shall  use its best
     efforts  to have  the  registration  statement  declared  effective  by the
     Commission  within  one  hundred  and  twenty  (120)  days after the Filing
     Deadline  (the  "Registration  Deadline").  The  Company  shall  permit the
     registration  statement to become  effective  within five (5) business days
     after  receipt  of  a  "no  review"  notice  from  the   Commission.   Such
     registration  statement shall be kept current and effective for the greater
     of (i) a period of at least three (3) years from the Closing  Date and (ii)
     a period of at least ninety (90) days after (x) all of the Notes shall have
     been converted into Conversion Shares or paid in full.

     Section 2.2 Expenses of Registration. All Registration Expenses incurred in
connection  with any  registration,  qualification  or  compliance  pursuant  to
Section  2.1  shall  be  borne  by the  Company;  and all  Selling  Expenses  in
connection with such registration, qualification or compliance shall be borne by
the holders of the Registrable Securities so registered pro rata on the basis of
the number of shares so registered.

     Section  2.3  Registration  Procedures.  In the case of each  registration,
qualification or compliance effected by the Company pursuant to this Article II,
the Company  will keep each Holder  advised in writing as to the  initiation  of
each  registration,  qualification  and  compliance  and  as to  the  completion
thereof. At its expense, the Company will:

         (a)  prepare  and  file  with  the  Commission   such   amendments  and
     supplements  to such  registration  statement  and the  prospectus  used in
     connection with such  registration  statement as may be necessary to comply
     with the provisions of the  Registrable  Securities Act with respect to the
     disposition  of all  Registrable  Securities  covered by such  registration
     statement;

         (b)  furnish to the  Holders  such  numbers of copies of a  prospectus,
     including a preliminary  prospectus,  in conformity with the requirement of
     the  Registrable  Securities  Act,  and such  other  documents  as they may
     reasonably   request  (including  a  conformed  copy  of  the  registration
     statement  filed with the  Commission  and any  amendments  thereto  and an
     original  executed  underwriting  agreement entered into in connection with
     such  registration)  in order to facilitate the  disposition of Registrable
     Registrable Securities owned by them;

         (c) use  reasonable  efforts to register  and  qualify the  Registrable
     Securities  covered  by  such  registration   statement  under  such  other
     Registrable  Securities  or  blue  sky  laws of one  (1)  jurisdiction  (in
     addition to those  jurisdictions  in which the Company has otherwise agreed
     to so  register  and  qualify  such  Registrable  Securities)  as  shall be
     reasonably requested by the Holders, provided that the Company shall not be
     required in connection therewith or as a condition thereto to qualify to do

                                        3

<PAGE>

     business  or  to  file  a general consent to service of process in any such
     states or jurisdictions;

         (d) in the event of any underwritten  public  offering,  enter into and
     perform its obligations  under an underwriting  agreement with the managing
     underwriter(s)  of  such  offering;   each  Holder  participating  in  such
     underwriting  shall also enter into and perform its obligations  under such
     underwriting agreement;

         (e)  notify  each  Holder of  Registrable  Securities  covered  by such
     registration  statement,  at any time when a prospectus relating thereto is
     required to be delivered  under the Securities Act, of the happening of any
     event as a result of which the  prospectus  included  in such  registration
     statement,  as then in effect,  includes an untrue  statement of a material
     fact or omits to state a material  fact  required  to be stated  therein or
     necessary to make the statements therein not misleading in the light of the
     circumstances then existing; and

         (f) furnish,  at the request of any Holder  requesting  registration of
     Registrable  Securities  pursuant to this Article II, on the date that such
     Registrable  Securities  are  delivered  to the  underwriters  for  sale in
     connection  with  registration   pursuant  to  this  Article  II,  if  such
     Registrable Securities are being sold through underwriters,  or on the date
     that the registration statement with respect to such Registrable Securities
     becomes  effective,  if such  Registrable  Securities  are not  being  sold
     through  underwriters,  (i) a copy of any opinion,  dated such date, of the
     counsel  representing  the Company for the  purposes of such  registration,
     addressed  to the  underwriters  of the  Company,  and  (ii) a copy  of any
     letter,  dated such date, from the independent  accountants of the Company,
     addressed to the underwriters of the Company.

     Each  Holder of  Registrable  Securities  agrees  that upon  receipt of any
notice from the Company of the  happening of any event of the kind  described in
clause  (f)  of  this  Section  2.3,  such  Holder  will  forthwith  discontinue
disposition of Registrable  Securities  pursuant to the  registration  statement
covering such  Registrable  Securities until such Holder's receipt of the copies
of a supplemented or amended prospectus and, if so directed by the Company, such
Holder will deliver to the Company (at the Company's expense), all copies, other
than permanent file copies then in such Holder's  possession,  of the prospectus
covering such Registrable  Securities that was in effect prior to such amendment
or supplement.  In the event the Company shall give any such notice,  the period
set forth in clause (a) of this  Section  2.3 shall be extended by the number of
days during the period from and  including the date of the giving of such notice
pursuant to clause (e) of this Section 2.3 to and  including  the date when each
seller of Registrable  Securities  covered by such registration  statement shall
have received the copies of a supplemented or amended prospectus.

     Section 2.4  Indemnification.

         (a) The Company will  indemnify  each Holder,  each Holder's  officers,
     directors  and   partners,   and  each  Person   controlling   such  Holder
     (collectively,  "Holder's  Parties"),  participating  in any  registration,
     qualification,  or  compliance  effected  pursuant to this  Article II with
     respect to Registrable Securities held by such Holder and each underwriter,
     if any, and each Person who controls any  underwriter,  against all claims,
     losses, damages and liabilities (or actions in respect thereof),  including
     any of the foregoing incurred in settlement of any litigation, commenced or
     threatened,  to  which  they  may  become  subject  under  the  Registrable
     Securities Act, the Exchange Act or other federal or state law, arising out
     of or based on (i) any untrue statement (or alleged untrue  statement) of a
     material  fact  contained  in any  prospectus,  offering  circular or other
     similar   document   (including   any   related   registration   statement,
     notification or the like)

                                        4

<PAGE>

     incident to any such registration, qualification or compliance, or based on
     any  omission  (or  alleged  omission)  to state  therein a  material  fact
     required to be stated therein or necessary to make the  statements  therein
     not misleading,  or (ii) any violation by the Company of any federal, state
     or common law rule or  regulation  applicable  to the Company in connection
     with any such registration, qualification or compliance, and will reimburse
     each such  Holder's  Parties  each such  underwriter,  and each  Person who
     controls  any  such  underwriter,  for any  legal  and any  other  expenses
     reasonably  incurred in connection with investigating or defending any such
     claim,  loss, damage,  liability or action, as incurred,  provided that the
     Company  will not be liable in any such  case to the  extent  that any such
     claim, loss, damage,  liability or expense arises out of or is based on any
     untrue  statement or omission,  made in reliance on and in conformity  with
     written  information  furnished to the Company by such Holder's  Parties or
     underwriter or Person controlling such underwriter  specifically for use in
     the preparation thereof.

         (b) Each Holder will, if Registrable Securities held by such Holder are
     included  in the  Registrable  Securities  as to which  such  registration,
     qualification  or compliance is being effected,  severally and not jointly,
     indemnify  the  Company,   each  of  its   directors  and  officers,   each
     underwriter,  if any, of the Company Registrable Securities covered by such
     a registration statement,  and each Person who controls the Company or such
     underwriter  within the meaning of the Registrable  Securities Act, against
     all claims, losses, damages and liabilities (or actions in respect thereof)
     arising  out of or based on (i) any untrue  statement  (or  alleged  untrue
     statement) of a material fact contained in any such registration statement,
     prospectus,  offering circular or other similar  document,  or any omission
     (or  alleged  omission)  to state  therein a material  fact  required to be
     stated therein or necessary to make the statements  therein not misleading,
     and  will  reimburse  the  Company,  such  directors,   officers,  Persons,
     underwriters  or  control  Persons  for any  legal  or any  other  expenses
     reasonably  incurred in connection with investigating or defending any such
     claim, loss, damage,  liability or action, as incurred, in each case to the
     extent,  but only to the  extent,  that such untrue  statement  (or alleged
     untrue  statement)  or  omission  (or  alleged  omission)  is  made in such
     registration statement,  prospectus, offering circular or other document in
     reliance upon and in conformity with the written  information  furnished to
     the Company by such Holder specifically for use in the preparation thereof,
     or (ii) any  violation by any such Holder of any  federal,  state or common
     law rule or regulation  applicable  to such Holder in  connection  with the
     distribution   of  Registrable   Securities   pursuant  to  a  registration
     statement,  and will reimburse the Company,  such Holders,  such directors,
     officers, Persons,  underwriters or control Persons for any legal any other
     expenses  reasonably incurred in connection with investigating or defending
     any such claim, loss, damage, liability, or action, as incurred;  provided,
     however,  that the  obligations  of each  such  Holder  hereunder  shall be
     limited  to an amount  equal to the  aggregate  proceeds  received  by such
     Holder in such offering.

         (c) Each party entitled to indemnification  under this Section 2.4 (the
     "Indemnified  Party")  shall give  notice to the party  required to provide
     indemnification (the "Indemnifying  Party") promptly after such Indemnified
     Party has received written notice of any claim as to which indemnity may be
     sought,  and shall permit the  Indemnifying  Party to assume the defense of
     any such claim or any litigation resulting therefrom, provided that counsel
     for the Indemnifying  Party, who shall conduct the defense of such claim or
     litigation,  shall be approved by the  Indemnified  Party  (whose  approval
     shall not unreasonably be withheld).  The Indemnified Party may participate
     in such  defense  at such  party's  expense;  provided,  however,  that the
     Indemnifying  Party shall bear the  expense of such  defense of one counsel
     representing the Indemnified Party if representation of both parties by the
     same counsel would be inappropriate due to actual or potential conflicts of
     interest. The failure of any Indemnified Party to give

                                        5

<PAGE>

     notice as provided herein shall not relieve the  Indemnifying  Party of its
     obligations  under this Section  2.4,  except to the extent such failure to
     give notice shall materially and adversely prejudice the Indemnifying Party
     in the defense of any such claim or any such  litigation.  No  Indemnifying
     Party, in the defense of any such claim or litigation,  shall,  except with
     the consent of each Indemnified Party,  consent to entry of any judgment or
     enter into any settlement  that does not include as an  unconditional  term
     thereof the giving by the claimant or plaintiff to such  Indemnified  Party
     of a release from all liability in respect to such claim or litigation.

         (d) (i) If the indemnification provided for in this Section 2.4 is held
         by  a  court  of  competent   jurisdiction  to  be  unavailable  to  an
         Indemnified Party with respect to any loss, liability, claim, damage or
         expense referred to herein, then the Indemnifying Party hereunder shall
         contribute to the amount paid or payable by such Indemnified Party as a
         result of such  loss,  liability,  claim,  damage or  expense,  in such
         proportion  as is  appropriate  to reflect  the  relative  fault of the
         Indemnifying  Party on the one hand  and the  Indemnified  Party on the
         other  hand in  connection  with  the  statements  or  omissions  which
         resulted in such loss,  liability,  claim, damage or expense as well as
         any other relevant equitable considerations.  The relative fault of the
         Indemnifying  Party and of the Indemnified Party shall be determined by
         reference to, among other things,  whether the untrue or alleged untrue
         statement of a material  fact or the omission to state a material  fact
         relates to  information  supplied by the  Indemnifying  Party or by the
         Indemnified Party and the parties' relevant intent,  knowledge,  access
         to information and  opportunities  to correct or prevent such statement
         or omission.

              (ii)The  parties  agree that it would not be just and equitable if
         contribution  pursuant to this Section 2.4 were  determined by pro rata
         allocation  or by any  other  method of  allocation  that does not take
         account of the equitable  considerations  referred to above. The amount
         paid or  payable  by an  Indemnified  Party as a result of the  claims,
         losses,  damages and  liabilities  referred to above shall be deemed to
         include, subject to the limitations set forth above, any legal or other
         expenses  reasonably  incurred by such Indemnified  Party in connection
         with investigating or defending any such action or claim.

              (iiiNo Holder that is a seller of Registrable  Securities  covered
         by such registration  statement or Person controlling such seller other
         than the Company shall be obligated to make contribution hereunder that
         in the  aggregate  exceeds  the  total  public  offering  price  of the
         Registrable  Securities sold by such Holder,  less the aggregate amount
         of any  damages  that such  Holder  and its  controlling  Persons  have
         otherwise  been  required to pay  pursuant  to this  Section  2.4.  The
         obligations  of such Holders to contribute are several in proportion to
         their  respective  ownership of the Registrable  Securities  covered by
         such registration statement and not joint.

              (iv)The  indemnity and  contribution  provided  herein shall be in
         addition to, and not in lieu of, any other liability that one party may
         have to another.

     Section 2.5  Information by Holder.  Each Holder of Registrable  Securities
included  in any  registration  shall  furnish to the Company  such  information
regarding  such  Holder  and the  distribution  proposed  by such  Holder as the
Company may request in writing and as shall be required in  connection  with any
registration, qualification or compliance referred to in this Article II.

     Section  2.6  Rule  144  Reporting.  With a view to  making  available  the
benefits of certain rules and regulations of the Commission that may at any time
permit the sale of the Restricted  Registrable  Securities to the public without
registration, the Company agrees to:

                                        6

<PAGE>

         (a) use its best  efforts  to  facilitate  the  sale of the  Restricted
     Registrable  Securities  to  the  public  without  registration  under  the
     Registrable  Securities  Act,  pursuant  to Rule 144 under the  Registrable
     Securities Act;

         (b) make and keep  public  information  available,  as those  terms are
     understood and defined in Rule 144 under the Registrable Securities Act, at
     all times  after the  effective  date of the first  registration  statement
     filed by the Company for an offering of its  Registrable  Securities to the
     general public;

         (c) file with the  Commission  in a timely manner all reports and other
     documents required of the Company under the Registrable  Securities Act and
     the Exchange Act (at any time after it has become subject to such reporting
     requirements); and

         (d) so long as a Holder owns any Restricted  Registrable  Securities to
     furnish to the Holder  forthwith  upon  request a written  statement by the
     Company as to its compliance  with the public  information  requirements of
     said Rule 144, and the reporting requirements of the Registrable Securities
     Act and the  Exchange  Act, a copy of the most recent  annual or  quarterly
     report of the Company, and such other reports and documents so filed by the
     Company as a Holder may reasonably  request in availing  itself of any rule
     or  regulation  of the  Commission  allowing  a  Holder  to sell  any  such
     Registrable Securities without registration.

     Section 2.7 Transfer of Registration  Rights. The rights granted under this
Article II may be assigned or  otherwise  conveyed by any Holder of  Registrable
Securities  to  any  transferee,  subject  to  compliance  with  all  applicable
Registrable Securities laws and regulations.

     Section  2.8  Certain  Limitations  in  Connection  with  Future  Grants of
Registration Rights.

     From and  after  the date of this  Agreement,  without  the  prior  written
consent of the Holders of a majority of the Registrable Securities,  the Company
shall not enter into any agreement with any holder or prospective  holder of any
Registrable  Securities of the Company providing for the granting to such holder
of  registration  rights  that  would be  superior  to those  granted to Holders
pursuant to Section 2.1.

     Section 2.9 Restrictions on Market Manipulation. In the event any shares of
Common  Stock are  offered  or sold by any Holder in a  registration,  each such
Holder will:

         (a)  advise  the  Company  in  writing  of any  offer,  sale  or  other
     disposition by it of any Common Stock in any manner other than as set forth
     in the registration  statement or any prospectus included therein on or for
     the 30-day period prior to the filing of such registration  statement until
     the distribution under the registration statement has been completed;

         (b)  not  effect  any  stabilization  activity  in  connection with the
     Company's Common Stock;

         (c) not bid or  purchase,  for any account in which it has a beneficial
     interest,  any Common  Stock  except as may be  permitted  pursuant to Rule
     10b-6 under the Exchange Act (if applicable);

         (d) not until it has sold all of such shares of Common  Stock,  attempt
     to  induce  any  Person  to  purchase  any  Common  Stock  except as may be
     permitted pursuant to Rule 10b-6; and

                                        7

<PAGE>

         (e) not  until it has sold all such  shares of  Common  Stock,  pay any
     compensation for soliciting another to purchase any Registrable  Securities
     of the Company, except as may be permitted pursuant to Rule 10b-6.

                                   ARTICLE III
                                  MISCELLANEOUS

     Section 3.1 Governing Law;  Jurisdiction and Venue. This Agreement shall be
governed by and interpreted in accordance with the laws of the State of Florida.
Any  controversy or claim arising out of or relating to this Agreement  (whether
in contract or tort,  or both,  or at law or in equity)  shall be  determined by
binding  arbitration  at West  Palm  Beach,  Florida,  in  accordance  with  the
commercial  arbitration  rules  of the  American  Arbitration  Association.  The
prevailing  party in any  arbitration  proceeding  shall be  awarded  reasonable
attorneys  fees and costs of the  proceeding.  The  arbitration  award  shall be
final,  and may be entered  in any court  having  jurisdiction.  Nothing in this
paragraph  shall  preclude  either party from  applying to a court for temporary
equitable relief, when appropriate, pending and subject to such temporary orders
and permanent award as the arbitrator or arbitrators may make. The parties agree
that the courts of the State of Florida,  shall have exclusive  jurisdiction and
venue for the  adjudication  of any civil  action  between  them  arising out of
relating to this Agreement,  and hereby irrevocably consent to such jurisdiction
and venue.

     Section 3.2 Successors and Assignees.  Except as otherwise provided herein,
the  provisions  hereof shall inure to the benefit of, and be binding upon,  the
successors,  assignees, heirs, executors and administrators (as the case may be)
of the parties hereto.

     Section  3.3 Entire  Agreement.  This  Agreement  constitutes  the full and
entire  understanding  and  agreement  between  the  parties  with regard to the
subject matter hereof.

     Section 3.4 Notices,  etc. All notices given under this Agreement and under
the other Loan  Documents  shall be in writing,  addressed to the parties as set
forth below, and shall be effective on the earliest of (i) the date received, or
(ii) if given by facsimile  transmittal on the date given if transmitted  before
5:00 p.m. the recipient's time, otherwise it is effective the next day, or (iii)
on the second business day after delivery to a major  international air delivery
or air courier service (such as Federal Express or Network Couriers):

         If to the Lender:

     Capital Consultants, Inc.
     1050 Chinoe Road, Suite 304
     Lexington, KY 40502

     With a copy (that does not constitute notice) to:

     Frank G. Dickey, Jr.
     1050 Chinoe Road, Suite 304
     Lexington, KY 40502
     Facsimile No. (859) 268-4446

         If to the Borrower:

     Orange Productions, Inc.
     222 Lakeview Avenue, Suite 113
     West Palm Beach, FL 33401
     (561) 832-5696

     With a copy (that does not constitute notice) to:

     Mintmire & Associates
     265 Sunrise Avenue, Suite 204
     Palm Beach, FL  33480
     Attn:  Donald F. Mintmire, Esq.
     Facsimile No. (561) 659-5371

                                        8

<PAGE>

     Section 3.5 Delays or  Omissions.  No delay or  omission  to  exercise  any
right,  power or remedy  accruing to any Holder of any  Registrable  Securities,
upon any breach or default of the Company under this Agreement, shall impair any
such  right,  power or remedy of such Holder nor shall it be  construed  to be a
waiver of any such breach or default or an acquiescence  therein or of or in any
similar  breach or  default  thereunder  occurring  nor shall any  waiver of any
single  breach or  default  be deemed a waiver  of any other  breach or  default
theretofore or thereafter occurring.  Any waiver, permit, consent or approval of
any kind or character  on the part of any Holder of any breach or default  under
this  Agreement  or any  waiver on the part of any Holder of any  provisions  or
conditions of this  Agreement  must be in writing and shall be effective only to
the extent  specifically set forth in such writing.  All remedies,  either under
this Agreement or by law or otherwise afforded to any Holder shall be cumulative
and not alternative.

     Section 3.6  Counterparts.  This Agreement may be executed in any number of
counterparts,  each of which may be  executed  by less  than all of the  parties
hereto,  each of  which  shall  be  enforceable  against  the  parties  actually
executing  such  counterparts  and all of which  together  shall  constitute one
instrument.

     Section 3.7  Severability.  In the event any  provision  of this  Agreement
shall  be  invalid,  illegal  or  unenforceable,   the  validity,  legality  and
enforceability  of the remaining  provisions shall not in any way be affected or
impaired thereby.

     Section 3.8 Amendments.  The provisions of this Agreement may be amended at
any time and from time to time, and particular  provisions of this Agreement may
be waived,  with and only with, an agreement or consent in writing signed by the
Company and by the Holders of a majority of the Registrable Securities voting as
a single class.

     The parties have executed this Registration Rights Agreement as of the date
first written above.

The Lender:                                      The Company:

CAPITAL CONSULTANTS, INC.                        ORANGE PRODUCTIONS, INC.

By /s/ Frank G. Dickey, Jr.                      By  /s/ Sam Peroulas
Name Frank G.  Dickey, Jr.                       Name  Sam Peroulas
Title President                                  Title   President
Date signed October 20, 2000                     Date signed October 20, 2000

                                        9

<PAGE>

                                ESCROW AGREEMENT

1.  Parties

     1.1.  This Escrow  Agreement  (this  AAgreement@)  is made and entered into
effective  October  20,  2000 (the  AEffective  Date@),  by and  between  Orange
Productions,  Inc. (the  ACompany@) and Capital  Consultants,  Inc. (the AEscrow
Holder@).

2.  Recitals.

     2.1.  This  Agreement  is made with  reference to the  following  facts and
circumstances:

          (a) The Company and Capital Consultants, Inc., as Lender, are entering
     into a Loan  Agreement  dated  October  20,  2000 (the  ALoan  Agreement@),
     pursuant to which the Company  will issue to the Lender up to an  aggregate
     of US$1,000,000 of notes (the ANotes@).  The Notes are convertible,  at the
     option of the  holder or  holders  thereof,  into  shares of the  Company=s
     common  stock,  $0.001 par value  (ACommon  Stock@).  The Common Stock into
     which the Notes are convertible  are referred to as the Conversion  Shares.
     The  Conversion  Shares are issuable in such amounts and upon the terms set
     forth in the Loan Agreement.

          (b) The conversion price of the Conversion Shares is US$0.60.

          (c) The Notes mature, unless sooner paid or converted, on December 31,
     2003

          (d) Under the terms of a  Registration  Rights  Agreement  between the
     Company  and the  Lender,  the  Company  has agreed to file a  registration
     statement (the ARegistration Statement@) under the United States Securities
     Act of  1933  as  Amended  (the  ASecurities  Act@),  for  the  purpose  of
     registering the issuance and resale of the Conversion Shares.

          (e) Under the terms of the Loan  Agreement,  the Company has agreed to
     execute this Agreement with the Escrow Holder,  to issue  certificates  for
     the Conversion Shares (the AConversion Shares Certificates@)  registered in
     the name of the Escrow  Holder,  and to deliver those  certificates  to the
     Escrow Holder pursuant to the terms of this Agreement.

          (h) In accordance with the terms of the Loan Agreement, the Company is
     issuing a Note for  US$50,000  upon the  execution of this  Agreement  (the
     AInitial Note@).

     2.1. In consideration of the premises, and in order to establish the escrow
for the  Conversion  Shares  required  by the Loan  Agreement,  the  Company  is
entering into this Agreement with the Escrow Holder.

3.  Escrow

     3.1.  Contemporaneously with the execution of this Agreement,  the Borrower
shall execute and deliver to the Escrow  Holder a certificate  for the number of
Conversion Shares underlying the Note evidencing the initial Loan. Prior to each
additional  Loan,  the Borrower shall execute and deliver to the Escrow Holder a
certificate for the number of additional  Conversion  Shares underlying the Note
evidencing that Loan.

                                        1

<PAGE>

     3.2. All certificates for Conversion  Shares delivered to the Escrow Holder
shall be registered in the name of Capital Consultants,  Inc. Until such time as
the  registration  statement  covering the Conversion  Shares is effective,  the
certificates  shall  bear a legend  indicating  that they have been  issued in a
transaction that is exempt from the registration  requirements of the Securities
Act,  and may not be  transferred  except  pursuant  to  registration  under the
Securities Act or an exemption from such  registration.  Except for such legend,
the Common Stock  underlying the Lenders= Warrant shall be free and clear of any
legends, liens, claims, stop orders or other restrictions.

     3.3. Not later than the third  Business Day following the effective date of
the  Registration  Statement,  the  Borrower  shall cause the Common Stock to be
registered in Lender=s  street name, in DTC form, free and clear of any legends,
liens, claims, stop orders or other restrictions.

     3.4. All  Conversion  Shares  deposited by the Company  after the effective
date of the  Registration  Statement  shall be  registered in the street name of
Capital  Consultants,  Inc., in DTC form, free and clear of any legends,  liens,
claims, stop orders or other restrictions.

4. Release of Conversion Shares

     4.1. Upon receipt of a Conversion  Notice, the Escrow Holder shall promptly
(and in any event within three  business  days) release the number of Conversion
Shares specified in the Conversion  Notice to the person specified  therein.  If
all of the unpaid principal of and interest on the Note is being converted; then
the Escrow Holder shall endorse the Note as paid in full, and transmit the Note,
so endorsed, and the Conversion Notice, to the Company. If the conversion is for
less than all of the unpaid  principal of and  interest on the Note,  the Escrow
Holder shall endorse upon the Note the amount of principal  thereof and interest
thereon that is being  converted,  and transmit a copy of the Note, so endorsed,
and the Conversion Notice, to the Company.

         5.  Termination and Resignation

     5.1. This Agreement, unless sooner terminated,  shall terminate on the date
on which all of the Notes have been redeemed or converted.

     5.2. The Escrow  Holder may resign as such at any time,  without  liability
therefor,  by giving  the  Company  and the  Lender  not less than 10 days prior
written  notice of its  election  to do so. In the event of the Escrow  Holder=s
resignation,  the  Company  shall  promptly  appoint a successor  Escrow  Holder
acceptable to the Lender.

6.  Limitation on the Escrow Holder=s Liability; Indemnification.

     6.1.  The Escrow  Holder  shall not be liable to the  Company,  to any Note
holder,  or to any other person or entity for any action taken or omitted by it,
except  for the  Escrow  Holder=s  own gross  negligence  or wilful  misconduct.
Without limiting the generality of the foregoing:

          (a) The Escrow Holder may rely upon,  and shall be protected in acting
     or  refraining  from acting in  reliance  upon,  any  notice,  certificate,
     instrument,  request,  paper or other document believed by it to be genuine
     and made, sent, signed or presented by the Company,  any Note holder or any
     other person or entity.

                                        2

<PAGE>

          (b) The  Escrow  Holder  shall not be  responsible  or liable  for the
     genuineness, validity or sufficiency of any Note, stock certificate, notice
     or other  instrument  delivered to it,  including  without  limitation  the
     genuineness  of any signature  thereon,  or of the identity or authority of
     any person executing or delivering the same.

     6.2. The Escrow  Holder shall not be obligated to take any action to defend
or enforce this  Agreement,  or to appear in,  prosecute or defend any action or
legal proceeding,  or to file any income or other tax return that, in the Escrow
Holder=s opinion,  would or might involve any cost, expense,  loss or liability,
unless,  and as often as  required  by it,  the  Company  shall  furnish it with
security and indemnity  satisfactory to it against all such cost, expense,  loss
and liability.

     6.3.  The  Escrow  Holder  shall not be  responsible  for the  validity  or
enforceability of any provision of this Agreement,  or for the execution thereof
by the Company, or for the truth or accuracy of any recitals or other statements
of fact contained in this Agreement.

     6.4.  The Escrow  Holder is not, and shall not be deemed for any purpose to
be, a fiduciary under this Agreement or otherwise, for the Company, for any Note
holder, or for any other person or entity.

     6.5.  Except  for  matters  for  which the  Escrow  Holder is liable to the
Company under  paragraph  6.1 of this  Agreement,  the Company  hereby agrees to
defend  and  indemnify  the  Escrow  Holder  and  its  shareholders,  directors,
officers,  employees  and Lenders,  and to hold each of them  harmless  from and
against  any  and all  judgments,  awards,  orders,  damages,  claims,  demands,
liability,  penalties, costs, and expenses (including attorney fees and court or
arbitration costs) of any nature whatsoever,  directly or indirectly arising out
of or relating to this  Agreement,  or any act or omission of the Escrow  Holder
hereunder. This indemnity shall survive termination of this Agreement.

7.  Miscellaneous Provisions.

     7.1. No amendment, modification, termination, or waiver of any provision of
this  Agreement,  nor consent to any  departure  by the Company  from any of its
provisions,  shall in any event be effective unless the same shall be in writing
and  signed by the  Escrow  Holder,  and then such  waiver or  consent  shall be
effective only in the specific  instance and for the specific  purpose for which
given.

     7.2. All notices given under this Agreement shall be in writing,  addressed
to the parties as set forth below, and shall be effective on the earliest of (i)
the date received,  or (ii) if given by facsimile  transmittal on the date given
if transmitted before 5:00 p.m. the recipient=s time,  otherwise it is effective
the next day,  or (iii) on the second  business  day after  delivery  to a major
international  air delivery or air courier  service (such as Federal  Express or
Network Couriers):

     If to the Escrow Holder:                  If to the Company:

     Capital Consultants, Inc.                 Orange Productions, Inc.
     1050 Chinoe Road, Suite 304               222 Lakeview Avenue, Suite 113
     Lexington, KY 40502                       West Palm Beach, FL  33401

                                        3

<PAGE>

With a copy (that does not constitute      With a copy (that does not constitute
notice) to:                                notice) to:

     Frank G. Dickey, Jr.                       Mintmire & Associates
     1050 Chinoe Road, Suite 304                265 Sunrise Avenue, Suite 204
     Lexington, KY 40502                        Palm Beach, FL  33480
     Facsimile No. (859) 268-4446               Attn:  Donald F. Mintmire, Esq.
                                                Facsimile No. (561) 659-5371

     7.3. No failure or delay on the part of the Escrow Holder in exercising any
right,  power, or remedy hereunder shall operate as a waiver thereof;  nor shall
any single or partial exercise of any such right,  power, or remedy preclude any
other or further exercise thereof or the exercise of any other right,  power, or
remedy hereunder.  The rights and remedies  provided herein are cumulative,  and
are not exclusive of any other rights, powers,  privileges,  or remedies, now or
hereafter existing, at law or in equity or otherwise.

     7.4. This  Agreement  shall be binding upon and inure to the benefit of the
Company and the Escrow  Holder,  and their  respective  successors  and assigns,
except that the Company  may not assign or  transfer  any of its r rights  under
this Agreement without the prior written consent of the Escrow Holder.

     7.5 The Company agrees to pay on demand all costs and expenses  incurred by
the Escrow  Holder in  connection  with the  preparation,  execution,  delivery,
filing,   and   administration   of  this  Agreement,   and  of  any  amendment,
modification,  or supplement hereto, including, without limitation, the fees and
out-of-pocket  expenses of counsel for the Escrow Holder  incurred in connection
with advising the Escrow Holder as to its rights and responsibilities hereunder.
The Company  also  agrees to pay all such costs and  expenses,  including  court
costs,  incurred  in  connection  with  enforcement  of this  Agreement,  or any
amendment,  modification,  or supplement thereto, whether by negotiation,  legal
proceedings,  or otherwise. In addition, the Company shall pay any and all stamp
and other taxes and fees payable or determined to be payable in connection  with
the issuance, transfer and deliver of any Warrant, and agrees to hold the Escrow
Holder  harmless  from and against any and all  liabilities  with  respect to or
resulting from any delay in paying or omission to pay such taxes and fees.  This
provision shall survive termination of this Agreement.

     7.6. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Florida.

     7.7. Any  controversy or claim arising out of or relating to this Agreement
(whether  in  contract  or  tort,  or  both,  or at law or in  equity)  shall be
determined by binding  arbitration  at West Palm Beach,  Florida,  in accordance
with  the  commercial  arbitration  rules  of  the  American  Arbitration.   The
prevailing  party in any  arbitration  proceeding  shall be  awarded  reasonable
attorneys  fees and costs of the  proceeding.  The  arbitration  award  shall be
final,  and may be entered  in any court  having  jurisdiction.  Nothing in this
paragraph  shall  preclude  either party from  applying to a court for temporary
equitable relief, when appropriate, pending and subject to such temporary orders
and permanent  award as the  arbitrator  or  arbitrators  may make.  The parties
hereby  consent  to the  exclusive  jurisdiction  of the  courts of the State of
Florida for that purpose.

                                        4

<PAGE>

     IN WITNESS  WHEREOF,  the Company and the Escrow  Holder have executed this
Agreement as of the Effective Date.

The Escrow Holder:                       The Company:

CAPITAL CONSULTANTS, INC.                ORANGE PRODUCTIONS, INC.

By /s/ Frank G. Dickey, Jr.              By  /s/ Sam Peroulas
Name Frank G.  Dickey, Jr.               Name  Sam Peroulas
Title President                          Title   President
Date signed October 20, 2000             Date signed October 20, 2000

                                        5

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