Document:

EXHIBIT 10.3

                              AMENDED AND RESTATED

                               PURCHASE AGREEMENT

         THIS AMENDED AND RESTATED PURCHASE AGREEMENT  ("AGREEMENT") is made and
entered into this 13th day of AUGUST,  1999, BY AND BETWEEN THE SHERWIN-WILLIAMS
COMPANY, AN OHIO CORPORATION ("SELLER"), and Novex Systems INTERNATIONAL,  INC.,
A NEW YORK CORPORATION ("PURCHASER").

                              W I T N E S S E T H:

         WHEREAS,   Seller  and  Purchaser   entered  into  a  certain  Purchase
Agreement,  dated  March 23,  1999,  as  amended  pursuant  to (i) that  certain
Amendment  to the  Purchase  Agreement  dated May 14, 1999 and (ii) that certain
Second Amendment to the Purchase Agreement dated June 18, 1999;

         WHEREAS, Seller and Purchaser desire to amend and restate such Purchase
Agreement,  as amended,  in accordance  with the terms and  conditions set forth
herein;

         WHEREAS, SELLER, THROUGH ITS ALLIED COMPOSITIONS AND POR-ROK BUSINESSES
("ALLIED/POR-ROK  OPERATIONS"),  is ENGAGED IN THE  BUSINESS  OF  MANUFACTURING,
DISTRIBUTING AND SELLING CEMENTITIOUS SPECIALTY PRODUCTS ("BUSINESS"); and

         WHEREAS,  Purchaser desires to purchase from Seller, and Seller desires
to sell,  assign,  transfer and deliver to Purchaser,  substantially  all of the
assets and  properties  used in  connection  with the Business and Purchaser has
agreed to assume certain  liabilities  for the purchase price and upon the terms
and subject to the conditions set forth in this Agreement.

         NOW, THEREFORE, in consideration of the mutual promises,  covenants and
agreements set forth herein, the parties agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

(a)      The following terms, as used herein, have the following meanings:

                  "AFFILIATE"  means,  with  respect  to any  Person,  any other
         Person  directly or  indirectly  controlling,  controlled  by, or under
         common control with such other Person.

                  "BUSINESS  DAY"  means any day  except a  Saturday,  Sunday or
         other  day on which  commercial  banks in the  State  of  Delaware  are
         authorized by law to close.

                  "LIEN"  means,  with  respect to any  property  or asset,  any
         mortgage,  lien,  pledge,  charge,  security  interest or other similar
         encumbrance with respect to such property or asset.

                  "PERMITTED  LIEN" means (i) any Lien for which the  underlying
         liability is disclosed on the Financial  Statements,  (ii) any Lien for
         taxes not yet due or being  contested  in good  faith or (iii) any Lien
         which  does  not  materially  detract  from  the  value  or  materially
         interfere with the use of any asset as currently used in the Business.

                  "PERSON"  means  an  individual,   corporation,   partnership,
         association,  trust  or  other  entity  or  organization,  including  a
         government  or political  subdivision  or an agency or  instrumentality
         thereof.

                  "TAX OR TAXES"  means all taxes,  fees or  assessments  in the
         nature of taxes of Seller,  including without limitation,  all federal,
         state,  county and local  income,  unemployment,  ad  valorem,  excise,
         sales,  use and gross  receipts  taxes,  together with any interest and
         penalties thereon imposed by any Taxing Authority whether arising prior
         to, on or after the Closing Date.

                  "TAXING AUTHORITY" means any governmental  authority (domestic
         or foreign) responsible for the imposition of any Tax.

(b) Each of the  following  terms is defined in the Section  set forth  opposite
such term:

                           TERM                                   SECTION

                  Accounts Receivable                             2.01(c)
                  Assets                                          2.01
                  Benefit Arrangements                            3.11(b)
                  Bill of Sale                                    9.02(b)
                  Cash Component                                  2.03(a)
                  Closing                                         9.01
                  Closing Date                                    9.01
                  Closing Date Statement                          2.04(a)
                  Contracts                                       3.08
                  Corporate Services Agreement                    5.08
                  ERISA                                           3.11(a)
                  Environmental Laws                              3.12(a)
                  Excluded Assets                                 2.02
                  Financial Statements                            3.06
                  Fixed Assets                                    2.01(a)
                  Improper Claim                                  6.03(a)(ii)(C)
                  Indemnifying Party                              6.03(b)
                  Indemnified Party                               6.03(b)
                  Inventory                                       2.01(b)
                  Material Adverse Effect                         3.03(a)
                  Net Current Assets                              2.04(a)
                  Non-Tendering Party                             6.03(a)
                  Offering                                        8.05
                  Personal Claim                                  6.03
                  Promissory Note                                 2.03(b)
                  Proper Claim                                    6.03(a)(i)
                  Proprietary Rights                              2.01(g)
                  Purchase Price                                  2.03
                  Purchaser's Indemnitees                         6.01
                  Purchaser's Losses                              6.01
                  Real Property                                   2.01(e)
                  Registration Rights Agreement                   2.03
                  Seller Employee Plans                           3.11(a)
                  Seller's Indemnitees                            6.02
                  Seller's Losses                                 6.02
                  Tendering Party                                 6.03(a)
                  Third-Party Claim                               6.03
                  Trademark License Agreements                    5.09

<PAGE>

                                   ARTICLE II

                           PURCHASE AND SALE OF ASSETS

2.01     ASSETS.  On the terms and subject to the  conditions  set forth in this
         Agreement,  Seller  agrees to sell,  assign,  transfer  and  deliver to
         Purchaser,  and  Purchaser  shall  purchase,  accept and  acquire  from
         Seller,  on the Closing Date all of Seller's right,  title and interest
         in  and  to the  following  assets  relating  solely  TO  THE  BUSINESS
         (COLLECTIVELY, THE "ASSETS"):

         (a)      all  machinery,   equipment,  furniture,  fixtures,  vehicles,
                  tools,  dies,  molds and parts and similar  PROPERTY LISTED ON
                  SCHEDULE 2.01(A) ("FIXED ASSETS");

         (b)      all  inventory  of raw  materials,  work in process,  finished
                  products,    packaging   materials   and   supplies,   labels,
                  containers,  brochures,  printed  materials  and  displays and
                  other goods of the BUSINESS ("INVENTORY");

         (C)      ALL ACCOUNTS  RECEIVABLE AND TRADE ACCOUNTS  RECEIVABLE LISTED
                  ON SCHEDULE 2.01(C) ("ACCOUNTS RECEIVABLE");

         (d)      the owned real  property  located in Clifton,  New Jersey,  as
                  more specifically  described on Schedule  2.01(d),  including,
                  but not limited to, any  buildings,  structures,  fixtures and
                  improvements  located on, or attached to, said real  property,
                  all of the rights  arising out of the ownership  thereof,  and
                  all leases, subleases, franchises, licenses, easements, rights
                  of way and profits which are appurtenant to said real property
                  or as to  which  Seller  otherwise  has any  right,  title  OR
                  INTEREST RELATING TO SUCH REAL PROPERTY ("REAL PROPERTY");

         (e)      all  rights of  Seller  to and  under any and all  agreements,
                  contracts,  orders,  commitments and leases relating solely to
                  the Business;

         (f)      all  rights  of  Seller  with  respect  to the  names  "Allied
                  Compositions" and/or "Por-Rok" and the U.S. and foreign names,
                  patents, patent applications,  marks, trade names, trademarks,
                  copyrights,   COPYRIGHT   APPLICATIONS  AND  LOGOS  LISTED  ON
                  SCHEDULE 2.01(F) ("PROPRIETARY RIGHTS");

         (g)      all customer lists, credit files of customers and supplier and
                  vendor  files used by Seller in  connection  with the Business
                  (provided,  however, with respect to any customer, supplier or
                  vendor which is also a customer,  supplier or vendor of any of
                  Seller's other businesses, Purchaser shall only be entitled to
                  receive copies of any such lists and/or files and Seller shall
                  have the right to redact from such lists  and/or files any and
                  all  information  contained  therein  which  relate  to any of
                  Seller's other business activities); and

         (h)      all merchandising items and promotional aids.

<PAGE>

2.02     EXCLUDED ASSETS.  It is expressly  understood and agreed by the parties
         hereto that the  following  assets of Seller  and/or the  Business  are
         specifically  excluded and excepted  from the Assets to be  transferred
         PURSUANT TO THIS  AGREEMENT  AND SHALL AT ALL TIMES REMAIN THE PROPERTY
         OF SELLER (COLLECTIVELY, "EXCLUDED ASSETS"):

         (a)      cash and cash equivalents;

         (b)      bank accounts; and

         (c)  intercompany  receivables  (not to exceed  Fourteen  Thousand  and
00/100 Dollars ($14,000.00).

2.03     PURCHASE PRICE.  The purchase price for the Assets shall be Two Million
         Fifty Thousand and 00/100 Dollars  ($2,050,000.00)  ("PURCHASE PRICE").
         The  Purchase  Price  shall  be  adjusted   upward  or  downward  on  a
         dollar-for-dollar  basis, by the amount, if any, determined pursuant to
         Section  2.04.  The  Purchase  Price,  prior to any upward or  downward
         adjustment determined pursuant to Section 2.04, shall be paid to Seller
         as follows:

(A)               SEVEN HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS  ($750,000.00)
                  ("CASH COMPONENT") shall be paid to Seller on the Closing Date
                  by wire transfer of immediately  available funds to an account
                  designated by Seller in writing prior to the Closing Date; and

(b)               The balance of the Purchase Price shall be paid in the form of
                  a  Promissory  Note of  Purchaser  in favor of  Seller  in the
                  principal  amount of One Million  Three  Hundred  Thousand and
                  00/100 Dollars  (1,300,000.00)  IN THE FORM ATTACHED HERETO AS
                  SCHEDULE 2.03(B) ("PROMISSORY NOTE").

         As  consideration  for Purchaser's  willingness to finance a portion of
         the  Purchase  Price,  Seller  shall  issue to  Purchaser  one  million
         (1,000,000)  shares of common stock of Purchaser.  Such shares shall be
         freely  tradable upon issuance or Purchaser and Seller shall enter into
         a Registration Rights Agreement in the form ATTACHED HERETO AS SCHEDULE
         2.03 ("REGISTRATION RIGHTS AGREEMENt").

2.04     ADJUSTMENT TO PURCHASE PRICE.

         (a)       Within   thirty  (30)  days   following  the  Closing  Date,
                   Purchaser shall prepare and deliver to Seller A CLOSING DATE
                   STATEMENT ("CLOSING DATE STATEMENT"), which shall set forth,
                   as of the  Closing  DATE,  THE  NET  CURRENT  ASSETS  OF THE
                   BUSINESS.  FOR THE  PURPOSES  OF  THIS  SECTION  2.04,  "NET
                   CURRENT  ASSETS"  shall mean the sum of Accounts  Receivable
                   and  Inventory.  In preparing  the Closing  Date  Statement,
                   Purchaser   shall  conduct  a  physical   inventory  of  all
                   Inventory  in   accordance   with  the  physical   inventory
                   instructions  attached as  Schedule  2.04(a).  The  physical
                   inventory   shall  be  conducted  on  the  day   immediately
                   preceding the Closing Date. The Inventory shall be valued in
                   accordance with the Business' past valuation practices.

         (b)      The Purchase Price shall be:

                  (i)      increased,  on  a  dollar-for-dollar  basis,  by  the
                           amount,  if  any,  that  Net  Current  Assets  of the
                           Business as set forth on the Closing  Date  Statement
                           are greater than Five Hundred Forty-Two  Thousand Six
                           Hundred Seventy-One and 00/100 Dollars ($542,671.00);
                           and

                  (ii)     decreased,  on  a  dollar-for-dollar  basis,  by  the
                           amount,  if  any,  that  Net  Current  Assets  of the
                           Business as set forth on the Closing  Date  Statement
                           are less than Five  Hundred  Forty-Two  Thousand  Six
                           Hundred Seventy-One and 00/100 Dollars ($542,671.00).

<PAGE>

         (c)        Seller  shall be  entitled  to full  access to the  relevant
                    records and working  papers of Purchaser and the Business to
                    aid Seller in its review of the Closing Date  Statement.  In
                    the event  Seller and  Purchaser  are unable to agree on the
                    Closing Date Statement (as computed in accordance  with this
                    Agreement)  within  thirty  (30)  days  following   Seller's
                    receipt of the  Closing  Date  Statement,  either  Seller or
                    Purchaser  shall be entitled to demand in writing  that such
                    disagreement  be submitted to arbitration to settle any such
                    dispute. Any such arbitration shall be conducted in the City
                    of New York, State of New York, by an arbitrator  acceptable
                    to both  Seller and  Purchaser,  or in the event  Seller and
                    Purchaser  cannot  agree on a single  arbitrator  within ten
                    (10)  days  after  any such  written  demand,  by three  (3)
                    arbitrators,  one (1) of whom shall be  appointed by Seller,
                    one (1) of whom  shall be  appointed  by  Purchaser  and the
                    third  of whom  shall  be  appointed  by the  first  two (2)
                    arbitrators.  The  parties  agree that any issues  involving
                    primarily financial matters shall be submitted to the public
                    accounting firm of  PricewaterhouseCoopers  LLP and that any
                    issues involving  matters other than financial matters shall
                    be  submitted  to  persons   having  legal   expertise   for
                    arbitration.  If either party fails to appoint an arbitrator
                    within   ten  (10)  days  after  the   written   demand  for
                    arbitration  identified above, then the arbitrator appointed
                    by the other party shall arbitrate any such disagreements in
                    accordance  with  this  Section  2.04.   Except  as  to  the
                    selection  of   arbitrators   as  set  forth   herein,   the
                    arbitration  proceedings  shall be  conducted  promptly  and
                    expeditiously   pursuant  to  the  rules  of  the   American
                    Arbitration  Association.  The decision of the arbitrator(s)
                    shall be final,  conclusive  and  binding  upon  Seller  and
                    Purchaser.  Seller and  Purchaser  shall  share  equally the
                    expenses for a single arbitrator and the arbitration,  or in
                    the event the parties cannot agree upon a single arbitrator,
                    each party  shall bear the  expenses of its  arbitrator  and
                    shall share  equally  with the other the expenses of a third
                    arbitrator and the arbitration.

         (d)      Within  fifteen (15)  calendar days after Seller and Purchaser
                  agree upon any  Purchase  Price  adjustment  pursuant  to this
                  Section 2.04 or the Purchase  Price  adjustment  is determined
                  through   arbitration,   Purchaser  shall  execute  a  revised
                  Promissory  Note  reflecting the Purchase  Price, as adjusted,
                  less the Cash Component.

2.05     PURCHASE PRICE ALLOCATION. Seller and Purchaser covenant and agree that
         the Purchase Price,  subsequent to adjustment pursuant to Section 2.04,
         shall be allocated  among the Assets in accordance with Section 1060 of
         the Internal  Revenue Code and the regulations  thereunder.  Seller and
         Purchaser agree that the fair market values of the Assets are set forth
         on Schedule 2.05.  Seller and Purchaser each hereby  covenant and agree
         that it will not take a position  on any  income tax return  before any
         governmental agency charged with the collection of any income tax or in
         any judicial  proceeding that is in any way inconsistent with the terms
         of this Section 2.05.

<PAGE>

2.06     ASSUMED  LIABILITIES.  Subject  to the terms and  conditions  set forth
         herein,  Purchaser  shall  assume  and  agree  to pay  when  due  those
         liabilities, obligations and commitments set forth on Schedule 3.08 (or
         not required to be set forth  therein  because of the amount  involved)
         but not  including  any  obligation  or  liability  for (i) any  breach
         thereof  occurring  prior  to the  Closing  Date or (ii)  any  monetary
         payments which are due and payable on or before the Closing Date.

         Except as set forth in this Section 2.06, it is acknowledged and agreed
         that  Purchaser  shall  not  assume  or be  responsible  for any  other
         liabilities,  obligations or commitments of Seller, including,  without
         limitation, any (A) liabilities, obligations or commitments relating to
         product  liability  claims  arising  from  products  sold  prior to the
         Closing  Date,  (B)  environmental  liabilities  and costs  relating to
         activities or events  occurring prior to the Closing Date, (C) Taxes of
         Seller which have accrued prior to the Closing Date, (D) liabilities in
         respect  of  employees  or  any  employee   benefit  plan  relating  to
         activities  or events  occurring  prior to the  Closing  Date,  and (E)
         liabilities  resulting  from any  litigation  relating to activities or
         events occurring prior to the Closing Date.

                                   ARTICLE III

                    REPRESENTATIONS AND WARRANTIES OF SELLER

         Seller hereby represents and warrants to Purchaser the following:

3.01     ORGANIZATION, STANDING AND AUTHORITY OF SELLER.

         (a)      Seller is a corporation  duly organized,  validly existing and
                  in good standing  under the laws of the State of Ohio.  Seller
                  has all  requisite  power and authority to execute and deliver
                  this Agreement and to perform its obligations hereunder.

         (b)      The execution and delivery of this Agreement by Seller and the
                  performance by Seller of the transactions  contemplated herein
                  have been duly authorized by all necessary corporate action on
                  the part of Seller.  This Agreement and all documents required
                  to be executed and  delivered by Seller  hereunder  constitute
                  legal,  valid and binding  obligations  of Seller  enforceable
                  against Seller in accordance with their terms.

<PAGE>

3.02     FINANCIAL  INFORMATION.  The unaudited  income statement for the twelve
         months ended  December 31, 1998 and BALANCE SHEET OF THE BUSINESS AS OF
         DECEMBER   31,  1998  ARE   ATTACHED  AS  SCHEDULE   3.02   ("FINANCIAL
         Statements").  The  Financial  Statements  were  prepared from Seller's
         internal  accounting  records  and were  prepared  in  conformity  with
         Seller's prior accounting  practices  applied on a consistent basis. To
         the best of Seller's knowledge, the Financial Statements fairly present
         the financial  condition of the Business as of the date thereof and the
         results  of  operations  for the period  then  ended.  SELLER  MAKES NO
         REPRESENTATION  OR WARRANTY WITH RESPECT TO ANY  FINANCIAL  INFORMATION
         FOR THE BUSINESS DELIVERED TO PURCHASER OTHER THAN AS CONTAINED IN THIS
         SECTION  3.02.  EXCEPT AS  EXPRESSLY  SET FORTH IN THIS  SECTION  3.02,
         SELLER MAKES NO OTHER  REPRESENTATION OR WARRANTY,  EXPRESS OR IMPLIED,
         WITH RESPECT TO THE  FINANCIAL  INFORMATION  PRESENTED IN THE FINANCIAL
         STATEMENTS.

3.03     ABSENCE OF CERTAIN  CHANGES OR EVENTS.  Except as set forth on Schedule
         3.03, since December 31. 1998, to the best of Seller's  knowledge,  the
         Business  has  operated  only  in  the  ordinary   course  of  business
         consistent with past practices and there has not been:

         (a)      any  event,  condition  or  occurrence  which has had or could
                  reasonably  be expected to have a material  adverse  effect on
                  the assets or financial  condition of the Business  taken as a
                  whole ("MATERIAL ADVERSE EFFECT");

         (b)      any incurrence, assumption or guarantee by the Business of any
                  third party  indebtedness  from a  non-Affiliate  for borrowed
                  money other than in the  ordinary  course of  business  and in
                  amounts and on terms consistent with past practices; or

         (c)      any creation or other incurrence of any Lien other than in the
                  ordinary course of business consistent with past practices.

3.04     GOVERNMENT  AUTHORIZATIONS.  Except  for  the  consent  required  to be
         obtained  pursuant to the New Jersey  INDUSTRIAL  SITE RECOVERY ACT AND
         ANY  RULES  OR  REGULATIONS   PROMULGATED  THEREUNDER   ("ENVIRONMENTAL
         CONSENT"), to the best of Seller's knowledge,  no consent,  approval or
         authorization  of, or  declaration,  filing or  registration  with, any
         federal,  state, local or other governmental or regulatory authority is
         required in  connection  with the  execution  and delivery by Seller of
         this  Agreement  and the  consummation  by Seller  of the  transactions
         contemplated hereby.

3.05     TITLE TO AND CONDITION OF REAL  PROPERTY.  Schedule 3.05 sets forth all
         real  property  owned or  leased by  Seller  and used in the  Business.
         Subject  to all Liens  reflected  on public  records  and all taxes and
         assessments which are not yet due and payable, Seller has good title to
         the Real  Property.  All leases are valid,  binding and  enforceable in
         accordance  with their  respective  terms and,  to the best of Seller's
         knowledge,  there  does not  exist  under any such  lease any  material
         default or any event  which with  notice or lapse of time or both would
         constitute a material default.

3.06     SUFFICIENCY OF PERSONAL PROPERTY. Except as set forth on Schedule 3.06,
         to the best of Seller's knowledge, the Business has good and marketable
         title to all machinery,  equipment, furniture, fixtures, tooling, dies,
         leasehold improvements and all other tangible personal property used by
         the  Business  and such  property is  substantially  in good  operating
         condition  and  repair,  subject to ordinary  wear and tear.  EXCEPT AS
         OTHERWISE   STATED  IN  THIS  SECTION  3.06,   SELLER  MAKES  NO  OTHER
         REPRESENTATION  OR WARRANTY,  EXPRESS OR IMPLIED,  WITH RESPECT TO SAID
         TANGIBLE PERSONAL PROPERTY.

<PAGE>

3.07     PROPRIETARY RIGHTS.

         (a)      Schedule  2.01(f) lists all U.S. and foreign  names,  patents,
                  patent   applications,   marks,   trade   names,   trademarks,
                  copyrights,  copyright  applications  and logos used solely in
                  the Business.

         (b)      Except as set forth on Schedule  3.07(b),  no proceedings have
                  been  instituted  or are  pending  or, to the best of Seller's
                  knowledge,  threatened  which  challenge  the  validity of the
                  ownership or use by Seller or the Business of the  Proprietary
                  Rights.

         (c)      Seller  has  no  knowledge  of  the   infringing  use  of  any
                  Proprietary   Rights  or  the  infringement  of  any  of  such
                  Proprietary Rights by any other person.

3.08     MATERIAL  CONTRACTS.  Schedule  3.08 sets forth a list of all  written,
         oral or other contracts and agreements  (COLLECTIVELY,  "CONTRACTS") to
         which the Business is bound which:

         (a)      have a remaining obligation in excess of Ten Thousand Dollars
                  and 00/100 ($10,000.00);

         (b)      are partnership, joint venture or other similar cooperative
                  arrangements; and

         (c)      are union, agency, dealer, sales representative,  marketing or
                  other  similar  agreement  that is not  terminable on not more
                  than ninety (90) days notice.

         To the best of Seller's  knowledge,  all  Contracts  listed on Schedule
         3.08 are valid, existing and enforceable in accordance with their terms
         and in full force and effect.  Seller has  provided to Purchaser a true
         and complete  copy of all written  Contracts  with all  amendments  and
         modifications  thereto.  Neither  the  Business  nor,  to the  best  of
         Seller's  knowledge,  any  other  party  to any of the  foregoing  have
         violated or breached  any material  provision of any of the  Contracts.
         Each of the Contracts  identified on Schedule 3.08 were entered into by
         the Business in the ordinary course of business.

3.09     COMPLIANCE  WITH LAWS.  Except as set forth on Schedules 3.09, 3.12 and
         3.13,  the  Business  has   substantially   complied  with  and  is  in
         substantial compliance with all federal, state, local and foreign laws,
         statutes,  regulations  and judicial  and/or  administrative  decisions
         applicable to the Business,  except for any  non-compliance  which does
         not have, individually or in the aggregate, a Material Adverse Effect.

3.10     LITIGATION.  Except  as set  forth  on  Schedule  3.10,  to the best of
         Seller's  knowledge,  there is no  suit,  claim,  action,  arbitration,
         proceeding or  investigation,  pending or  threatened,  against  Seller
         relating to the Business.

<PAGE>

3.11     EMPLOYEE BENEFITS.

         (a)      Schedule 3.11(a) lists each material  "employee benefit plan",
                  as such  term  is  defined  in  Section  3(3) OF THE  EMPLOYEE
                  RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED  ("ERISA"),
                  which (i) is  maintained,  administered  or  contributed to by
                  Seller or any of its  Affiliates  and (ii)  covers any CURRENT
                  EMPLOYEE (COLLECTIVELY, "SELLER EMPLOYEE PLANS"). With respect
                  to each  Seller  Employee  Plan,  Seller has  provided or made
                  available to  Purchaser a true and complete  copy of such plan
                  document  (or a summary  description  of such Seller  Employee
                  Plan).

         (b)        Schedule 3.11(b) lists each material  employment,  severance
                    or similar contract, arrangement or policy (exclusive of any
                    such contract  which is  terminable  within thirty (30) days
                    without liability to the Seller),  and each material plan or
                    arrangement  providing  for  severance,  insurance  coverage
                    (including   any   self-insured   arrangements),    workers'
                    compensation, disability benefits, supplemental unemployment
                    benefits,  vacation benefits, pension or retirement benefits
                    or for deferred compensation, profit-sharing, bonuses, stock
                    options,   stock  appreciation  rights  or  other  forms  of
                    incentive   compensation   or   post-retirement   insurance,
                    compensation  or benefits that (i) is not a Seller  Employee
                    Plan, (ii) is entered into,  maintained or contributed to by
                    Seller or any of ITS AFFILIATES AND (III) COVERS ANY CURRENT
                    EMPLOYEE (COLLECTIVELY, "BENEFIT ARRANGEMENTS").

3.12     ENVIRONMENTAL COMPLIANCE.  Except as described on Schedule 3.12:

         (a)        no notice,  notification,  demand,  request for information,
                    citation,  summons or order has been received,  no complaint
                    has been  filed,  no penalty has been  assessed  and, to the
                    best of Seller's  knowledge,  no  investigation or review is
                    pending or  threatened by any  governmental  or other entity
                    relating to the Business  pursuant to any federal,  state or
                    local laws, regulations or orders applicable to the Business
                    relating  to  the  use,  generation,   treatment,   storage,
                    transportation,  disposal or release of any hazardous, toxic
                    or  radioactive  material  or  substance  or waste  into the
                    ENVIRONMENT  ("ENVIRONMENTAL  LAWS"),  except for any of the
                    foregoing  which  does  not  have,  individually  or in  the
                    aggregate, a Material Adverse Effect; and

         (b)      to the best of Seller's knowledge and except where the failure
                  to do so  would  not  have  a  Material  Adverse  Effect,  the
                  Business  has  obtained  all  material  permits,  licenses  or
                  similar   authorizations   required   under   the   applicable
                  Environmental Laws.

3.13     TAX MATTERS.  Except as set forth on Schedule 3.13, to the best of its
         knowledge, Seller has:
         -----------

         (a)      timely  filed all Tax  returns  required to be filed by Seller
                  with any Taxing  Authority to which  Seller has been  subject;
                  and

         (b) timely paid in full all amounts due to each Taxing Authority.

3.14     INSURANCE.  The Assets of Seller are  adequately  insured under various
         policies  of general  liability  and other forms of  insurance,  all of
         which are in full force and effect in accordance  with their terms,  no
         written or oral notice of cancellation  has been received,  and, to the
         best of  Seller's  knowledge,  there is no  existing  default  or event
         which,  with the notice or lapse of time or both,  would  constitute  a
         default  thereunder.  All premiums  related to such  policies have been
         paid in full.

3.15     BROKERAGE.  No broker, finder or agent has acted directly or indirectly
         for Seller  and/or the Business in  connection  with this  Agreement or
         with the transactions contemplated hereby.

                                   ARTICLE IV

                 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

         Purchaser hereby represents and warrants to Seller the following:

4.01     ORGANIZATION, GOOD STANDING AND AUTHORITY OF PURCHASER.

         (a)      Purchaser is a corporation  duly organized,  validly  existing
                  and in good  standing  under  the laws of  State of New  York.
                  Purchaser has all requisite power and authority to execute and
                  deliver  this   Agreement  and  to  perform  its   obligations
                  hereunder.

         (b)      The execution and delivery by Purchaser and the performance by
                  Purchaser of the  transactions  contemplated  herein have been
                  duly authorized by all necessary  corporate action on the part
                  of Purchaser.  This Agreement and all documents required to be
                  executed  and  delivered  by  Purchaser  hereunder  constitute
                  legal, valid and binding obligations of Purchaser  enforceable
                  against Purchaser in accordance with their terms.

4.02     CAPITALIZATION; TITLE TO SHARES.

         (a)        The  authorized  capital  stock  of  Purchaser  consists  of
                    60,000,000  shares  including  50,000,000  shares  of common
                    stock, par value $.001 per share,  and 10,000,000  shares of
                    preferred  stock,  par value  $.001 per  share.  Immediately
                    following the  consummation  of the  transactions  described
                    herein,  the  number of  issued  and  outstanding  shares of
                    common stock of Purchaser will be 21,562,577.  There are no,
                    and following  consummation  of the  transactions  described
                    herein,  there will be no, issued and outstanding  shares of
                    preferred stock of Purchaser. The capital stock of Purchaser
                    has been duly  authorized  and,  to the  extent  issued  and
                    outstanding,  validly issued,  fully paid and nonassessable.
                    Immediately  following   consummation  of  the  transactions
                    described herein,  there are outstanding  options to acquire
                    1,300,924  shares of common stock of Purchaser  and warrants
                    to  acquire  706,365  shares of common  stock of  Purchaser.
                    Except as  otherwise  set forth in the  preceding  sentence,
                    there are no outstanding obligations, warrants, puts, calls,
                    rights to  subscribe,  agreements  or other  commitments  or
                    rights  of any kind or nature  whatsoever  to  purchase  any
                    securities  of  Purchaser,  nor are  there  any  outstanding
                    securities  of  Purchaser  which  are  convertible  into  or
                    exchangeable  for any  shares  of  capital  stock  or  other
                    securities of Purchaser.  Purchaser has no obligation of any
                    kind or nature  whatsoever to issue any additional shares of
                    its capital stock or other securities.

         (b)      The  delivery  of the  shares  of  common  stock of  Purchaser
                  pursuant to Section  2.03 above will vest in Seller  legal and
                  valid  title  to such  shares,  free and  clear of all  liens,
                  security interests or other encumbrances.

4.03     NO CONFLICT.  Neither the execution and delivery of this  Agreement nor
         the Purchaser's  performance of the  transactions  contemplated  herein
         will violate or conflict with any provisions of Purchaser's Certificate
         of Incorporation or By-Laws.

4.04     BROKER'S  OR  FINDER'S  FEES.  No  broker,  finder  or agent  has acted
         directly or indirectly for Purchaser in connection  with this Agreement
         or with the transactions contemplated by this Agreement.

4.05     FINANCING.  As of the Closing  Date,  Purchaser  shall have  sufficient
         cash,  available  lines of  credit  or  other  sources  of  immediately
         available funds to enable it to purchase the Assets pursuant to Article
         II hereof and pay any other amounts to be paid by it hereunder.

4.06     LITIGATION.  There is no  action,  suit,  investigation  or  proceeding
         pending, or to the knowledge of Purchaser threatened, against Purchaser
         before any court or  arbitrator  or any  governmental  body,  agency or
         official  which in any manner  challenges or seeks to prevent,  enjoin,
         alter or materially delay the transactions contemplated hereby.

                                    ARTICLE V

                                    COVENANTS

5.01     ACCOUNTS.  On and after the Closing Date,  Seller shall,  within thirty
         (30) days after  receipt,  forward to Purchaser any monies  received by
         Seller  with  respect to any goods  and/or  services  delivered  and/or
         performed by the Business after the Closing Date.

5.02     REASONABLE  EFFORTS;  FURTHER  ASSURANCES.  Subject  to the  terms  and
         conditions  of this  Agreement,  Purchaser and Seller will each use its
         reasonable  efforts to take,  or cause to be taken,  all actions and to
         do, or cause to be done, all things necessary under applicable laws and
         regulations,  to  consummate  the  transactions  contemplated  by  this
         Agreement.  Seller and Purchaser each agree to execute and deliver such
         other  documents,  certificates,  agreements  and other writings and to
         take such other  actions as may be  necessary  or desirable in order to
         consummate the transactions  contemplated by this Agreement and to vest
         in Purchaser good title to the Assets.

5.03     ACCESS.

         (a)      On and after the Closing Date,  Purchaser will afford promptly
                  to Seller and its agents  reasonable  access to the  Business'
                  properties,  books,  records,  employees  and  auditors to the
                  extent  necessary  to permit  Seller to  determine  any matter
                  relating  to  its  rights  and  obligations  hereunder  or  to
                  determine  any matter  relating to its rights and  obligations
                  with respect to any event  occurring or period  ending  before
                  the Closing Date (including,  without limitation,  the ability
                  to  make  copies  of  books  and  records,   as  Seller  deems
                  necessary);  provided that any such access by Seller shall not
                  unreasonably interfere with the conduct of the Business.

         (b)      On and after the Closing Date,  Seller will afford promptly to
                  Purchaser and its agents, all at Purchaser's cost,  reasonable
                  access to the Business'  properties,  books and records to the
                  extent  necessary  to permit  Purchaser to conduct an audit of
                  the  Business  for the  two (2)  fiscal  years  preceding  the
                  Closing Date and will provide all  reasonable  assistance  and
                  cooperation in the conduct of such audit.

5.04     PLANT  CLOSING   NOTIFICATION.   Purchaser  shall  be  responsible  for
         providing any notice of layoff or plant  closing  required with respect
         to any  manufacturing  facility of the Business pursuant to the Federal
         Worker  Adjustment  and  Retraining   Notification  Act  of  1988,  any
         successor  federal law and any applicable  state or local plant closing
         notification statute, for any such layoffs or plant closings which will
         commence effective on or subsequent to the Closing Date.

<PAGE>

5.05     PRORATIONS.  Seller and Purchaser  agree that the following  prorations
         relating to the Assets and the  ownership and operation of the Business
         will be made as of the Closing  Date,  with Seller liable to the extent
         such items  relate to any time  period  prior to the  Closing  Date and
         Purchaser  liable to the extent such items relate to periods  including
         and subsequent to the Closing Date:

         (a)      real estate taxes on or with respect to the Real Property;

         (b)      rents,  additional  rents,  taxes and other  items  payable by
                  Seller  under  any  lease  to be  assigned  to or  assumed  by
                  Purchaser; and

         (c)      the  amounts of rents,  and other  charges  for sewer,  water,
                  telephone,  electricity  and other  utilities  relating to the
                  Real Property.

         Except as otherwise  agreed by the parties,  the net amount of all such
         prorations will be settled and paid on the Closing Date. If the Closing
         shall occur before a real estate tax rate is fixed,  the  apportionment
         of real estate taxes shall be based upon the tax rate for the preceding
         year applied to the latest assessed valuation.

5.06     TAXES.

         (a)      Seller shall (i) timely file on or after the Closing Date, all
                  Tax returns  required  to be filed by it for periods  prior to
                  the  Closing  Date and (ii) timely pay all Taxes due by it for
                  periods prior to the Closing Date.

         (b)      Purchaser  shall pay all transfer,  documentary,  sales,  use,
                  stamp,  registration,  real  property  transfer and other such
                  taxes or fees  incurred  arising  out of the  transfer  of the
                  Assets  or  otherwise  by virtue  of the  consummation  of the
                  transactions contemplated in this Agreement.

5.07     DISCLOSURE SCHEDULES.

<PAGE>

         (a)        At any time and from time to time prior to the Closing Date,
                    Seller may deliver to Purchaser  revised Schedules as may be
                    necessary  to make the  representations  and  warranties  of
                    Seller  contained  herein true on the date hereof  and/or on
                    and as of the  Closing  Date.  Any  delivery  made by Seller
                    pursuant  to the  preceding  sentence  shall not  affect any
                    right  which  Purchaser  may  have  to  elect  not to  close
                    pursuant  to  Section  8.01 if any matter  disclosed  in the
                    revised  Schedules  has a Material  Adverse  Effect,  but if
                    Purchaser  consummates the Closing, then the accuracy of the
                    representations  and  warranties of Seller,  whether made on
                    the date hereof or on and as of the Closing Date,  shall for
                    all purposes of this Agreement be determined  with reference
                    to the Schedules as revised by Seller  pursuant to the first
                    sentence  of this  Section  5.07(a).  Seller  shall  provide
                    Purchaser   with  such   additional   information  in  their
                    possession as the Purchaser may reasonably  request relating
                    to any Schedules  revised  pursuant to this Section 5.07(a).
                    Seller  shall  endeavor to provide any revised  Schedules to
                    Purchaser  at least seven days prior to the Closing Date but
                    nothing herein shall preclude Seller from delivering revised
                    Schedules up to the Closing.  Notwithstanding the foregoing,
                    the  rights of Seller to revise  any  Schedule  prior to the
                    Closing  Date shall not apply to  Schedule  3.02,  except as
                    otherwise mutually agreed by the parties.

         (b)      If at any  time  prior  to the  date  hereof  or from the date
                  hereof to the Closing  Date,  Purchaser is or becomes aware of
                  any matter  which should be disclosed by Seller in a Schedule,
                  Purchaser  shall  promptly  provide  notice  to Seller of such
                  matter.

5.08     CORPORATE  SERVICES.  On the Closing  Date,  Purchaser and Seller shall
         execute and deliver a corporate SERVICES AGREEMENT IN THE FORM ATTACHED
         HERETO AS SCHEDULE 5.08 ("CORPORATE  SERVICES  AGREEMENT")  pursuant to
         which Seller shall make available to Purchaser  certain  administrative
         support  services which are currently being provided to the Business on
         a basis, and for a price, substantially consistent with Seller's recent
         historical   practices   including,   without  limitation,   accounting
         services, order processing services and credit approval.

5.09     TRADEMARK LICENSE AGREEMENT.  On the Closing Date, Seller shall provide
         for Purchaser's  execution  trademark  LICENSE  AGREEMENTS IN THE FORMS
         ATTACHED  HERETO  AS  SCHEDULE  5.09A  AND  5.09B  ("TRADEMARK  LICENSE
         Agreements")  pursuant to which Purchaser shall obtain a non-exclusive,
         non-assignable,  fully paid-up  license to use, for the term  indicated
         therein,  the trademark "Minwax" on any and all packaging materials for
         products  sold  in the  Business  and on any and  all  copyrighted  and
         non-copyrighted  promotional and sales  materials,  office supplies and
         product literature being purchased and sold hereunder on which "Minwax"
         appears on the Closing Date.

5.10     NO  SOLICITATION.  From and after the date hereof and until the Closing
         or the  termination of this Agreement,  whichever  comes first,  Seller
         shall not  solicit,  initiate  or  encourage  any  inquiries  or offers
         relating to the acquisition of the Business.

                                   ARTICLE VI

                                 INDEMNIFICATION

6.01     SELLER'S INDEMNIFICATION.  Seller agrees to indemnify,  defend and hold
         Purchaser,  its  directors,   officers,  employees,   subsidiaries  and
         affiliates,  and the  successors  and  assigns of any of the  foregoing
         ("PURCHASER'S  INDEMNITEES"),  harmless  from and  against  any and all
         claims,  liabilities,  obligations,  demands,  damages,  losses, costs,
         expenses  (including  reasonable  attorney's fees),  fines,  penalties,
         judgments and amounts paid in settlement  imposed on, asserted  against
         or  incurred  by  Purchaser's  Indemnitees  and which  arise out of, in
         connection  with,  result from or are incident to any of the  following
         (COLLECTIVELY, "PURCHASER'S LOSSES"):

         (a)      misrepresentations   or  breaches  of  any  representation  or
                  warranty (but only to the extent  Purchaser has fully complied
                  with its obligations set forth in Section 5.07(b)),  covenant,
                  obligation or agreement of Seller in this  Agreement or in any
                  document or  agreement  furnished or to be furnished by Seller
                  under this Agreement; and

<PAGE>

         (b)      any claim of product liability or personal injury arising from
                  products sold prior to the Closing Date;

         (c)      any liability for Taxes of Seller;

         (d)      any   claim,   action,   suit  or   demand   for  any   legal,
                  administrative  or other  proceeding  identified  on  Schedule
                  3.10;

         (e)      any liability  arising from employee benefit plans retained by
                  Seller,  worker's  compensation or long-term disability claims
                  arising from conduct or events  occurring prior to the Closing
                  Date, whether or not asserted as of the Closing Date; and

         (f)        all  claims,  demands,  damages,  costs,  expenses,  losses,
                    liabilities,   penalties,   fines,   suits  and  proceedings
                    (including  attorney's  fees) arising or resulting  from (i)
                    the violation of or the enforcement by any federal, state or
                    local  governmental   entity  or  any  third  party  of  any
                    Environmental Laws or the remediation of hazardous materials
                    (as defined in the  Environmental  Laws)  resulting from the
                    operation of the Business;  (ii) any  liability  relating to
                    the Business claimed to arise under any  Environmental  Law,
                    as  now  or  hereafter  enacted,  reauthorized  or  amended,
                    arising out of facts or circumstances occurring prior to the
                    Closing Date, or otherwise  arising out of or resulting from
                    the operation of the Business  prior to the Closing Date; or
                    (iii) conditions  caused,  events occurring or activities at
                    the Real  Property or with respect to the Business  prior to
                    the Closing  Date which  result in any  emission,  disposal,
                    deposit,  contamination,  release or  discharge of hazardous
                    materials or regulated  substances (whether on or off of the
                    Real Property) covered or regulated by Environmental Laws.

6.02     PURCHASER'S INDEMNIFICATION.  Purchaser agrees to indemnify, defend and
         hold  Seller,  its  directors,   officers,   employees,   subsidiaries,
         affiliates  and the  successors  and assigns,  of any of the  foregoing
         ("SELLER'S  INDEMNITEES") harmless from and against any and all claims,
         liabilities,  obligations,  demands,  damages,  losses, costs, expenses
         (including reasonable attorney's fees), fines, penalties, judgments and
         amounts paid in settlement, imposed on, asserted against or incurred by
         Seller's Indemnitees and which arise out of, in connection with, result
         from or are incident to any of the following  (collectively,  "SELLER'S
         LOSSES"):

         (a)      misrepresentations   or  breaches  of  any  representation  or
                  warranty,  covenant,  obligation  or agreement of Purchaser in
                  this Agreement or in any document or agreement furnished or to
                  be furnished by Purchaser under this Agreement;

         (b)      the Assumed Liabilities; and

<PAGE>

         (c)      any liabilities and/or obligations of the Business, regardless
                  of whether the events or circumstances giving rise to any such
                  liability and/or obligation occurred prior to, on or after the
                  Closing Date, except for matters for which Seller has provided
                  indemnification pursuant to Section 6.01.

6.03     CLAIM FOR INDEMNIFICATION.  Any party seeking indemnification under the
         provisions of this Agreement, WITHIN NINETY (90) DAYS AFTER THE TIME IT
         DISCOVERS  THAT IT HAS A  CLAIM  AGAINST  ANOTHER  PARTY  (A  "PERSONAL
         CLAIM") or promptly upon receipt of written  notice of any claim or the
         service  of a summons or other  initial  legal  process  upon it in any
         action  instituted  against  it  which  relates  to this  Agreement  (a
         "THIRD-PARTY  CLAIM"),  shall give written notice of such claim, or the
         commencement  of such  action,  to the party from whom  indemnification
         will be sought hereunder.

         (A)      THIRD PARTY CLAIM.  In the event of a Third-Party  Claim,  the
                  party seeking indemnification ("TENDERING PARTY") shall tender
                  the  defense of such Third  Party Claim to the party from whom
                  INDEMNIFICATION  IS  SOUGHT   ("NON-TENDERING   PARTY").   The
                  Non-Tendering  Party  shall,  within  ten (10) days  after the
                  receipt  thereof,  inform the Tendering  Party in writing that
                  the Non-Tendering Party will either:

                  (I)      ACCEPT   THE   TENDER  OF  THE   DEFENSE   WITHOUT  A
                           RESERVATION  OF RIGHTS.  If the  Non-Tendering  Party
                           agrees  that the  Third  Party  Claim is a claim  for
                           which indemnification is provided FOR PURSUANT TO THE
                           TERMS  OF  THIS  AGREEMENT   ("PROPER  CLAIM"),   the
                           Non-Tendering  Party  shall  accept the tender of the
                           defense  without a reservation of rights.  In such an
                           event  the  Non-Tendering  Party  shall  control  all
                           aspects of the  defense of such Third Party Claim and
                           shall  indemnify  the  Tendering  Party in accordance
                           with this Article VI.

                  (II)     ACCEPT THE TENDER OF THE DEFENSE  WITH A  RESERVATION
                           OF  RIGHTS.  If  the  Non-Tendering  Party  questions
                           whether the Third Party Claim is a Proper Claim,  the
                           Non-Tendering  Party  may  accept  the  tender of the
                           defense  with a  reservation  of  rights.  In such an
                           event,  the  Non-Tendering  Party  shall  submit such
                           Third Party Claim to arbitration immediately in order
                           to determine whether it is a Proper Claim.  While the
                           arbitration is pending, the Non-Tendering Party shall
                           control  all  aspects  of the  defense  of such Third
                           Party Claim.

                           If the decision of the arbitrator(s) is that it is:

                           (A)      a Proper Claim, and the Third Party Claim is
                                    still pending, the Non-Tendering Party shall
                                    continue  the  defense of such  Third  Party
                                    Claim and shall  defend,  indemnify and hold
                                    the Tendering  Party  harmless in accordance
                                    with this Article VI;

                           (B)      a Proper  Claim,  but the Third  Party Claim
                                    has    already    been    concluded,     the
                                    Non-Tendering Party shall indemnify and hold
                                    the Tendering  Party  harmless in accordance
                                    with this Article VI;

<PAGE>

                    (C)  a claim for which  indemnification  is not provided for
                         pursuant  to the  terms  of THIS  AGREEMENT  ("IMPROPER
                         CLAIM"),  and the Third Party  Claim is still  pending,
                         the Non-Tendering Party shall return all aspects of the
                         defense of such Third  Party Claim  immediately  to the
                         Tendering  Party. In such an event, the Tendering Party
                         shall  assume the control of all aspects of the defense
                         of  such  Third  Party  Claim   immediately  and  shall
                         reimburse  the  Non-Tendering  Party  for all costs and
                         Expenses  (including,  but not limited  to,  reasonable
                         attorneys fees) incurred by the Non-Tendering  Party in
                         the defense of such Third Party Claim; or

                    (D)  an  Improper  Claim,  but the  Third  Party  Claim  has
                         already  been  concluded,  the  Tendering  Party  shall
                         reimburse  the  Non-Tendering  Party  for all costs and
                         expenses  (including,  but not  limited  to  reasonable
                         attorneys fees) incurred by the Non-Tendering  Party in
                         the  defense  of  such  Third  Party  Claim  and  shall
                         reimburse the Non-Tendering  Party for all amounts paid
                         by the Non-Tendering Party for judgments or settlements
                         relating to such Third Party Claim.

                  (III)    REJECT   THE   TENDER   OF   THE   DEFENSE.   If  the
                           Non-Tendering  Party  decides  that the  Third  Party
                           Claim is an Improper Claim, the  Non-Tendering  Party
                           shall  reject the tender of the  defense.  In such an
                           event,  the  Non-Tendering  Party  shall  submit such
                           Third Party Claim to arbitration immediately in order
                           determine  whether  it is a Proper  Claim.  While the
                           arbitration  is pending,  the  Tendering  Party shall
                           control  all  aspects  of the  defense  of such Third
                           Party Claim. If the decision of the  arbitrator(s) is
                           that it is:

                    (A)  a Proper  Claim,  and the  Third  Party  Claim is still
                         pending, the Tendering Party shall transfer the control
                         of all aspects of the defense of such Third Party Claim
                         to the  Non-Tendering  Party. The  Non-Tendering  Party
                         shall  assume the  defense of such  Third  Party  Claim
                         immediately and shall reimburse the Tendering Party for
                         all costs and expenses (including,  but not limited to,
                         reasonable  attorneys  fees)  incurred by the Tendering
                         Party in the  defense  of such  Third  Party  Claim and
                         shall defend,  indemnify  and hold the Tendering  Party
                         harmless in accordance with this Article VI;

                    (B)  a Proper  Claim,  but the Third Party Claim has already
                         been concluded, the Non-Tendering Party shall indemnify
                         and hold the  Tendering  Party  harmless in  accordance
                         with this Article VI;

                    (C)  an Improper  Claim,  and the Third Party Claim is still
                         pending,  the Tendering Party shall continue to control
                         all aspects of the  defense of such Third Party  Claim;
                         or

                    (D)  an  Improper  Claim,  but the  Third  Party  Claim  has
                         already been concluded,  the Tendering Party shall bear
                         all Losses  incurred by the Tendering Party relating to
                         such Third Party Claim.

<PAGE>

          (B)  PERSONAL CLAIM. In the event of a Personal Claim,  the party from
               whom  indemnification  is sought  ---------------  ("INDEMNIFYING
               PARTY")  shall,  within thirty (30) days after the receipt of the
               claim  for  INDEMNIFICATION,  SEND  WRITTEN  NOTICE  TO THE PARTY
               SEEKING INDEMNIFICATION  ("INDEMNIFIED PARTY") indicating whether
               the claim is disputed. If the claim is disputed, the Indemnifying
               Party  shall  submit  the  matter  to  arbitration  in  order  to
               determine if it is a Proper  Claim and, if it is a Proper  Claim,
               to  determine  the amount of such  claim.  To the extent that the
               arbitrator(s)  rules  that a  Personal  Claim is a  Proper  Claim
               and/or to the extent that a Personal  Claim is not disputed,  the
               Indemnifying Party shall promptly indemnify the Indemnified Party
               in accordance with Article VI.

6.04     ARBITRATION  PROCEDURE.  Any  arbitration  conducted  pursuant  to this
         Article VI shall be conducted in  accordance  with Section 2.03 of this
         Agreement.  If a party is  required  to submit a matter to  arbitration
         pursuant  to Section  6.03,  and such  party  fails or refuses to do so
         within  ten (10)  days,  the  other  party  may  submit  the  matter to
         arbitration.  In any matter which is submitted to arbitration  pursuant
         to this Article VI, the party  seeking  indemnification  shall bear the
         burden  of  proof.  If  the  prevailing  party  is  the  party  seeking
         indemnification, the prevailing party shall be entitled to receive from
         the  indemnifying   party  all  sums  due  under  the   indemnification
         provisions  plus all costs and reasonable  attorneys'  fees incurred by
         the prevailing party relating to the arbitration.

6.05     LIMITATION  ON  INDEMNIFICATION.  The  indemnification  obligations  of
         Seller  provided  for in Section 6.01

         shall expire:

         (a)      on the first anniversary of the Closing Date with respect to
                  claims pursuant to Section 6.01(a);

         (b)      on the third  anniversary  of the Closing Date with respect to
                  claims pursuant to Sections 6.01(b), 6.01(d) and 6.01(e);

         (c)      on the fifth  anniversary  of the Closing Date with respect to
                  claims pursuant to Section 6.01(f); and

         (d)      upon the  expiration of any  applicable  statue of limitations
                  with respect to claims pursuant to Section 6.01(c).

         With respect to any Purchaser's Losses,  Purchaser's  Indemnities shall
         not be entitled to indemnification  therefor until the aggregate amount
         of such Purchaser's  Losses exceed a threshold of Twenty-Five  Thousand
         Dollars  ($25,000.00)   whereupon  Purchaser's   Indemnitees  shall  be
         entitled to indemnification  hereunder for the aggregate amount of such
         Purchaser's   Losses  in  excess  of   Twenty-Five   Thousand   Dollars
         ($25,000.00)  up to a  maximum  liability  cap of One  Million  Dollars
         ($1,000,000.00);  provided,  however, that Purchaser has paid to Seller
         in  cash  a  minimum  of One  Million  Dollars  ($1,000,000.00)  of the
         Purchase  Price  consisting  of the Cash  Component  and at  least  Two
         Hundred  Thousand  Dollars  ($200,000.00)  of  principal  due under the
         Promissory Note. In the event that Seller has not received a minimum of
         One Million Dollars  ($1,000,000.00)  in cash at such time as Purchaser
         makes a claim for indemnification pursuant to this Article VI, then the
         maximum  liability cap  pertaining to such claim(s) shall equal the sum
         of the Cash  Component  and the  amount of any  principal  received  by
         Seller  under  the  Promissory  Note.  Notwithstanding  the  foregoing,
         Purchaser's  Losses with respect to claims  pursuant to Section 6.01(b)
         shall not be subject to the maximum liability cap.

<PAGE>

                                   ARTICLE VII

                  CONDITIONS PRECEDENT TO SELLER?S OBLIGATIONS

         Notwithstanding  the  execution  and delivery of this  Agreement or the
performance  of  any  part  hereof,   Seller's  obligations  to  consummate  the
transactions contemplated by this Agreement shall be subject to the satisfaction
of each of the  conditions set forth in this Article VII by the time for Closing
on the Closing Date,  except to the extent that such  satisfaction  is waived in
writing by Seller.

7.01     REPRESENTATIONS  AND WARRANTIES OF PURCHASER.  All  representations and
         warranties  made by  Purchaser  in this  Agreement  shall  be true  and
         correct  in all  respects  on the date  hereof,  and  shall be true and
         correct  in  all   respects  on  the   Closing   Date  as  though  such
         representations  and warranties were again made,  without  exception or
         deviation, on the Closing Date.

7.02     PERFORMANCE OF THIS  AGREEMENT.  Purchaser shall have duly performed or
         complied with all the obligations  under this Agreement to be performed
         or complied with by Seller on or prior to the Closing Date.

7.03     ABSENCE OF  PROCEEDINGS.  No proceeding  shall have been  instituted or
         threatened  on or before the Closing Date by any Person,  the result of
         which did or could prevent or make illegal the  consummation  of all or
         any of the transactions contemplated by this Agreement, or which had or
         could have a material adverse effect on the business of Purchaser.

                                  ARTICLE VIII

                 CONDITIONS PRECEDENT TO PURCHASER?S OBLIGATIONS

         Notwithstanding  the  execution  and delivery of this  Agreement or the
performance  of any  part  hereof,  Purchaser?s  obligation  to  consummate  the
transactions contemplated by this Agreement shall be subject to the satisfaction
of each of the conditions set forth in this Article VIII by the time for Closing
on the Closing Date,  except to the extent that such  satisfaction  is waived by
Purchaser in writing.

8.01     REPRESENTATIONS  AND  WARRANTIES  OF SELLER.  All  representations  and
         warranties  made by Seller in this Agreement  shall be true and correct
         in all  respects on the date  hereof,  and shall be true and correct in
         all  respects on the Closing  Date as though such  representations  and
         warranties  were made again,  without  exception or  deviation,  on the
         Closing Date.

8.02     MATERIAL  ADVERSE  EFFECT.  There  shall not  exist  any  matter on the
         Closing  Date  which has a  Material  Adverse  Effect and which was not
         disclosed to Purchaser in a Schedule on the date hereof.

8.03     PERFORMANCE  OF THIS  AGREEMENT.  Seller  shall have duly  performed or
         complied with all of the covenants and obligations under this Agreement
         to be  performed  or  complied  with by them on or prior to the Closing
         Date.

8.04     ABSENCE OF  PROCEEDINGS.  No proceeding  shall have been  instituted or
         threatened on or before the Closing Date by any Person  against  Seller
         the  result  of  which  did  or  could  prevent  or  make  illegal  the
         consummation  of all or any of the  transactions  contemplated  by this
         Agreement.

8.05     COMPLETION  OF  FINANCING.  The parties  hereto fully  understand  that
         Purchaser  shall  undertake  to offer to SELL  SECURITIES  TO RAISE THE
         FINANCING FROM  THIRD-PARTIES  ("OFFERING")  to pay Seller the Purchase
         Price. Seller fully understands that Purchaser's obligation to purchase
         the Assets at the  Closing  is fully  conditional  upon its  ability to
         timely  complete  the  Offering to finance the purchase of such Assets.
         Notwithstanding anything stated to the contrary, in the event Purchaser
         shall not complete the Offering  prior to the Closing,  and that Seller
         elects not to extend the period for the  Closing,  then this  Agreement
         shall terminate  immediately and neither party shall have any rights or
         obligations  under or relating to this  Agreement or the subject matter
         hereof immediately thereafter.

                                   ARTICLE IX

                                     CLOSING

9.01     CLOSING. THE CLOSING OF THE PURCHASE AND SALE OF THE ASSETS PURSUANT TO
         THIS  AGREEMENT  ("CLOSING")  shall TAKE PLACE ON OR BEFORE  AUGUST 13,
         1999, AS MUTUALLY AGREED BY PURCHASER AND SELLER ("CLOSING  DATE"),  at
         the offices of The Sherwin-Williams Company, 101 Prospect Avenue, N.W.,
         Cleveland,  Ohio 44115 or at such other place as may be mutually agreed
         upon by the parties. The Closing shall be effective as of 12:00:01 a.m.
         on the Closing Date.

9.02     DELIVERIES OF SELLER.  Seller shall deliver to Purchaser at the
Closing:

(a)  copies,  certified by the  Secretary or Assistant  Secretary of Seller,  of
     resolutions  of Seller's  board of  directors  authorizing  the  execution,
     delivery  and  performance  of this  Agreement  and all  other  agreements,
     documents  and  instruments  relating  hereto and the  consummation  of the
     transactions  contemplated in this  Agreement,  which  certification  shall
     recite that such resolutions have not been subsequently  amended,  modified
     or rescinded and are in full force and effect;

(b)  the Registration Rights Agreement;

(C)  THE BILL OF SALE IN THE FORM ATTACHED HERETO AS SCHEDULE  9.02(B) ("BILL OF
     SALE");

(d)  the Corporate Services Agreement;

(e)  the Trademark License Agreements; and

(f)  such other Closing documents as Purchaser may reasonably request.

9.03 DELIVERIES OF PURCHASER. Purchaser shall deliver to Seller at the Closing:

(a)  the Cash Component of the Purchase Price in the manner  provided in Section
     2.03;

(b)  the Promissory Note;

(c)  the Registration Rights Agreement;

(d)  copies,  certified by the  Secretary or Assistant  Secretary of Seller,  of
     resolutions  of Seller's  board of  directors  authorizing  the  execution,
     delivery  and  performance  of this  Agreement  and all  other  agreements,
     documents  and  instruments  relating  hereto and the  consummation  of the
     transactions  contemplated in this  Agreement,  which  certification  shall
     recite that such resolutions have not been subsequently  amended,  modified
     or rescinded and are in full force and effect;

(e)  the Bill of Sale;

(f)  the Corporate Services Agreement;

(g)  the Trademark License Agreements;

(h)  sales tax exemption certificates reasonably requested by Seller, including,
     but  not  limited  to,  New  Jersey  resale  and  manufacturing   exemption
     certificates; and

(i)  such other Closing documents as Purchaser may reasonably request.

                                    ARTICLE X

                                    EXPENSES

         Purchaser  and  Seller  will  bear  their  own   respective   expenses,
including, without limitation, counsel and accountants' fees, in connection with
the preparation and negotiation of, and transactions  contemplated  under,  this
Agreement.

                                   ARTICLE XI

                                  MISCELLANEOUS

11.01    NOTICES. Any notices, requests, claims, demands, instructions and other
         communications  to be given  hereunder to any party shall be in writing
         and  delivered in person,  sent by  certified  mail,  postage  prepaid,
         return receipt requested, or by facsimile transmission with a confirmed
         telephonic  transmission answer back, to the following addresses (or at
         such other address or number as is given in writing by one party to the
         others pursuant hereto):

         If to Seller:              The Sherwin-Williams Company
                                    101 Prospect Avenue, N.W.
                                    Cleveland, Ohio  44115

                                    Attn:   Vice President-Corporate Planning
                                    and Development
                                    Telecopy No.:  (216) 566-2947

         with a copy to:            The Sherwin-Williams Company
                                    101 Prospect Avenue, N.W.
                                    Cleveland, Ohio  44115

                                    Attn:   Vice President, Secretary and
                                    General Counsel
                                    Telecopy No.:  (216) 566-1708

         If to Purchaser:  Novex Systems International, Inc.
                                    67 Wall Street, Suite 2001
                                    New York, New York  10005
                                    Attn:  Daniel W. Dowe, President
                                    Telecopy No.:  (212) 825-0354

         with a copy to:            Dowe, Capetanakis & Preite
                                    67 Wall Street, Suite 2001
                                    New York, New York  10005
                                    Attn:  Charles Capetanakis, Esq.
                                    Telecopy No.:  (212) 825-0354

11.02    AMENDMENTS.  This Agreement may be amended only upon the mutual written
         consent of the parties hereto.

11.03    DUPLICATES,  ORIGINALS COUNTERPARTS.  This Agreement may be executed in
         counterparts,  each of which shall be deemed to be an original, but all
         of which together shall constitute one and the same agreement.

11.04    ENTIRE  AGREEMENT.  This  Agreement,  including the  Schedules  hereto,
         constitutes  the entire  agreement  between the parties with respect to
         the subject  matter  hereof and  supersedes  all prior  agreements  and
         understandings  between  the  parties.  There  are no  representations,
         warranties, undertakings or agreements between the parties with respect
         to the subject matter of this Agreement except as set forth herein.

11.05    NON-ASSIGNABILITY. Neither of the parties hereto may assign its rights,
         interests,  obligations or liabilities under this Agreement or delegate
         its duties without the prior written consent of the other party.

11.06    PUBLIC  ANNOUNCEMENTS.  Seller and  Purchaser  shall  consult with each
         other before  issuing any press release or otherwise  making any public
         statement relating to the transactions  contemplated  hereby, and shall
         not issue any such  press  release  or make any such  public  statement
         without  the  consent of the other party  (which  consent  shall not be
         unreasonably withheld or delayed) except as may be required by law.

11.07    HEADINGS.  The headings contained in this Agreement are for convenience
         of  reference  only and shall not  affect  the  interpretation  of this
         Agreement.

11.08    GOVERNING  LAW. This  Agreement  shall be governed and construed in
         accordance  with the laws of the State of Ohio.

11.09    SEVERABILITY.  In the event  any term or  provision  of this  Agreement
         shall be deemed to be illegal, invalid or unenforceable for any reason,
         such  illegality,  invalidity or  unenforceability  will not affect any
         other  term or  provision  of this  Agreement  and  the  parties  shall
         endeavor to replace the invalid or null and void provision(s) with such
         which correspond best to the intentions of the parties hereto.

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement on
the date hereinbefore stated.

WITNESS:                                    THE SHERWIN-WILLIAMS COMPANY

_________________________________   By:     _________________________________
_________________________________   Title:  _________________________________

WITNESS:                                    NOVEX SYSTEMS INTERNATIONAL, INC.

_________________________________   By:     _________________________________
_________________________________   Title:  _________________________________SECURED INSTALLMENT NOTE

$890,000.00                                     New York, New York
 August 13, 1999

         FOR VALUE RECEIVED, NOVEX SYSTEMS INTERNATIONAL, INC., a corporation of
the State of New York,  promises to pay in lawful monies of the United States of
America, to the order of

                              DIME COMMERCIAL CORP.

                           1180 Avenue of the Americas

                                    Suite 510

                       New York, New York 10036 ("Lender")

OR AT SUCH  PLACE AS LENDER  MAY FROM TIME TO TIME  DESIGNATE  IN  WRITING,  THE
PRINCIPAL  SUM OF  EIGHT  HUNDRED  NINETY  THOUSAND  (890,000.00)  DOLLARS  (the
"Loan"), together with interest as hereinafter provided,  computed from the date
hereof, in thirty-seven (37) consecutive  monthly  installments in the following
manner and upon the following terms and conditions:

1. Seven (7) consecutive  monthly  payments of interest only,  then  twenty-nine
(29)  consecutive  monthly  principal  installments  of  $7,722.23  each  and  a
thirty-seventh  (37) and final principal  installment of  $666,055.33,  together
with  interest  as  hereinafter  provided.  Such  installments  are  to be  paid
commencing on the first day of September 1999 and on the first day of each month
thereafter  until  September 1, 2002.  All payments of interest and principal or
prepayments of principal,  howsoever  designated by the  undersigned,  are to be
applied  first on account of  interest  on the unpaid  balance of the  principal
indebtedness,   and  the  balance,   if  any,  on  account  of  said   principal
indebtedness.

2. The  undersigned  shall  pay to Lender  interest  upon any  unpaid  principal
balance advanced  hereunder or under the terms of the Security  Agreement at the
close of each day,  which  interest  shall be due and  payable  to Lender on the
first  Banking  Day of the  following  month.  Any failure or delay by Lender in
presenting  invoices for interest shall not discharge or relieve the undersigned
of its obligation to make such interest payments.  The interest rate which shall
be used to  calculate  the  amount  of  interest  due  each  month  shall be the
Reference  Rate of  interest in effect  during the period for which  interest is
being calculated plus two (2) percentage points per annum. The interest due each
month shall be paid by undersigned  or, at the option of Lender,  charged to any
checking or loan account maintained by the undersigned with Lender or any Lender
Affiliate,  but if not paid  within  ten (10) days of the  close of each  month,
interest may, at Lender's discretion, be added to the undersigned's loan account
balance.  Interest  shall be  calculated  on the basis  that one day  represents
1/360th of a year. For the purposes of this obligation,  "Reference Rate," which
is determined periodically,  means the rate established by The Dime Savings Bank
of New York,  FSB.  from  time to time at is  principal  domestic  office as its
reference-lending  rate for domestic  commercial loan.  Lender may make loans to
customers  above,  at or below the Reference  Rate.  The  Reference  Rate may be
changed from time to time by Lender without notice to the  undersigned and shall
be effective on the date any such change occurs.

3. Anything  herein to the contrary  notwithstanding,  upon the  occurrence  and
during the  continuance  of an Event of Default  hereunder or under the Loan and
Security  Agreement dated even date herewith as it may be  subsequently  amended
and/or  modified  (collectively,  the "Security  Agreement"),  the interest rate
charged to the undersigned  shall, at Lender's  discretion,  be increased to the
Reference Rate plus four (4) percentage points per annum.

4. Anything herein to the contrary notwithstanding,  if any scheduled payment of
interest or principal  due  hereunder is received  more than ten (10) days after
the date  due,  there  shall be due a late  charge of five (5)  percent  of such
payment.

5. This Note is  subject  to and  governed  by the terms and  conditions  of the
Security Agreement, all of which terms and conditions are incorporated herein by
reference  with the same force and effect as though set forth  herein at length.
All sums due hereunder are secured by the  collateral  described in the Security
Agreement.  All terms referred to herein shall have the meaning ascribed to them
in the Security Agreement unless the context otherwise requires.

6. The undersigned shall be n default under this Note upon the occurrence of any
of the events which  constitute an Event of Default pursuant to the terms of the
Security  Agreement.  Upon the  occurrence  of any  Event of  Default,  then the
aforesaid principal sum or so much thereof as shall then remain unpaid, with all
arrearages of interest thereon,  shall,  without notice or demand, at the option
of Lender, become due and payable immediately thereafter,  anything hereinbefore
contained to the contrary notwithstanding.  Furthermore,  Lender shall thereupon
be  entitled  to exercise  all of the  remedies of a secured  party at law or in
equity,  together with the rights and remedies provided to it under the Security
Agreement.

7. It is  understood  and agreed that the  undersigned  may prepay in full or in
part at any time  without  penalty the  principal  of this  obligation  provided
prepayment shall be in multiples of not less than $5,000.00.  Principal payments
made pursuant to this  paragraph are to be applied in inverse order of principal
payments due.

8. If there  shall be any  arrears in any  payments  covenanted  or agreed  upon
herein or an Event of Default  shall  occur in the  provisions  of the  Security
Agreement  securing  this Note,  the terms of which are  incorporated  herein by
reference  with the same force and effect as though set forth  herein at length,
then the Lender  may, at its option,  make any such  payments  and the amount so
paid shall be added to and become part of the principal sum evidenced hereby and
secured by such Security  Agreement and shall be payable on demand with interest
at the rate set forth in this Note.

9. The  undersigned  shall be liable for all costs,  charges and  expenses,  and
other  sums   incurred  or  advanced  by  Lender   (including   legal  fees  and
disbursements)  to preserve the Collateral,  collect on the Obligation,  protect
Lender's  interests or to enforce Lender's rights against the undersigned or any
guarantor.

10. As further  security for the performance of the obligations  hereunder,  the
undersigned  hereby  gives  Lender a general  lien upon all  property and assets
heretofore or hereafter  delivered to Lender, and Lender shall have the right of
setoff,  in addition to any other  rights  conferred  by statute or operation of
law, with respect to any account of the undersigned  with Lender,  and any other
funds or tangible  assets which may, at any time,  be in  possession of or under
Lender's custody and control.

11. Lender is hereby  authorized to disclose any financial or other  information
about the undersigned to any regulatory body or agency having  jurisdiction over
the Lender, or to any present, future or prospective participant or successor in
interest  in any loan or other  financial  accommodation  made by  Lender to the
undersigned.  Lender is authorized by the undersigned,  without notice to it, to
date this Note as of the date when the first  advance is made and to fill in any
blank  spaces to conform to the terms upon  which the  advance or  advances  are
made.

12.  Lender shall not, by any act, be deemed to have waived any of its rights or
remedies  hereunder,  unless such waiver is in writing and signed by Lender, and
then only to the extent set forth therein. A waiver as to any one event shall in
no way be construed as continuing or as preventing  the waiver or enforcement of
such rights or remedies available to Lender on a subsequent event.

13. The liability of the  undersigned  shall be joint and several,  absolute and
unconditional and without regard to the liability of any other party.

14. The  undersigned  and all other parties who at any time may be liable hereon
in any capacity, jointly and severally,  waive presentment,  demand for payment,
protest  and  notice of  protest,  and  notice of  dishonor  of this  Note,  and
authorize Lender,  without notice, to grant any extension,  postponement of time
of payment,  indulgence or any  substitution,  exchange or release of Collateral
and to the  addition  to or  release  of  any  party  or  persons  primarily  or
secondarily  liable  or  acceptance  of  partial  payments  on any  accounts  or
instruments and the settlement, compromising or adjustment thereof.

15. The provisions  herein  contained shall bind and inure to the benefit of the
undersigned and Lender and their  respective legal  representatives,  successors
and assigns (provided,  however, that the undersigned shall not assign this Note
without  first  obtaining  the  written  consent  of  Lender).  Lender  (or  any
subsequent  assignee)  may  transfer  and  assign  this  Note  and  deliver  the
Collateral  to the  assignee,  who  shall  thereupon  have all of the  rights of
Lender;  and Lender (or any such  subsequent  assignee  that in turn  assigns as
aforesaid)  shall then be  relieved  and  discharged  of any  responsibility  or
liability with respect to this Note and said Collateral.

16. For the purposes of this Note  wherever the term  "Lender"  shall be used it
shall refer to any subsequent  holder,  successor or assignee  hereof unless the
context requires otherwise.

17. (a) ANY LEGAL SUIT,  ACTION OR  PROCEEDING  AGAINST  LENDER OR OBLIGOR,  ANY
GUARANTOR OR OTHER PARTY TO THIS TRANSACTION  ARISING OUT OF OR RELATING TO THIS
NOTE SHALL BE  INSTITUTED  IN THE SOLE  OPTION OF LENDER IN ANY FEDERAL OR STATE
COURT IN NEW YORK,  NEW YORK,  PURSUANT  TO ss.  5-1402 OF THE NEW YORK  GENERAL
OBLIGATIONS LAW OR ANY STATE OR FEDERAL COURT LOCATED IN NEW JERSEY,  AND LENDER
AND OBLIGOR WAIVE ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY SUCH SUIT,  ACTION OR PROCEEDING,  AND LENDER AND OBLIGOR HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUIT, ACTION OR
PROCEEDING. OBLIGOR SHALL DESIGNATE FROM TIME TO TIME AN AUTHORIZED AGENT HAVING
AN  OFFICE  IN THE STATE OF NEW YORK TO ACCEPT  AND  ACKNOWLEDGE  ON ITS  BEHALF
SERVICE OF ANY AND ALL PROCESS  WHICH MAY BE SERVED IN ANY SUCH SUIT,  ACTION OR
PROCEEDING IN ANY FEDERAL OR STATE COURT IN NEW YORK,  NEW YORK, AND AGREES THAT
SERVICE OF PROCESS  UPON SUCH AGENT AT SUCH  ADDRESS AND WRITTEN  NOTICE OF SUCH
SERVICE  OF SUCH  OBLIGOR  MAILED OR  DELIVERED  TO SUCH  OBLIGOR  IN THE MANNER
PROVIDED  HEREIN SHALL BE DEEMED IN EVERY RESPECT  EFFECTIVE  SERVICE OF PROCESS
UPON SUCH  OBLIGOR IN ANY SUCH  SUIT,  ACTION OR  PROCEEDING  IN THE SATE OF NEW
YORK.  OBLIGOR (I) SHALL GIVE PROMPT NOTICE TO LENDER OF ANY CHANGED  ADDRESS OF
ITS  AUTHORIZED  AGENT  HEREUNDER,  (II) MAY AT ANY  TIME AND FROM  TIME TO TIME
DESIGNATE A  SUBSTITUTE  AUTHORIZED  AGENT WITH AN OFFICE IN NEW YORK,  NEW YORK
(WHICH OFFICE SHALL BE  DESIGNATED  AS THE ADDRESS FOR SERVICE OF PROCESS),  AND
(III) SHALL PROMPTLY  DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES
TO HAVE AN  OFFICE  IN NEW  YORK,  NEW YORK OR IS  DISSOLVED  WITHOUT  LEAVING A
SUCCESSOR.

                  (B) IN ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING
OUT OF THIS NOTE,  LENDER,  OBLIGOR,  EACH ENDORSER AND GUARANTOR WAIVE TRIAL BY
JURY,  AND  OBLIGOR,  EACH  ENDORSER AND  GUARANTOR  ALSO WAIVE (I) THE RIGHT TO
INTERPOSE ANY SET-OFF OR  COUNTERCLAIM  OF ANY NATURE OR DESCRIPTION  OTHER THAN
MANDATORY  COUNTERCLAIMS,  (II) ANY OBJECTION  BASED ON FORUM NON  CONVENIENS OR
VENUE, AND (III) ANY CLAIM FOR CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES.

18. THIS NOTE WAS  NEGOTIATED IN THE STATE OF NEW YORK,  AND MADE BY OBLIGOR AND
ACCEPTED BY LENDER IN THE STATE OF NEW YORK, AND THE PROCEEDS DELIVERED PURSUANT
THERETO WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE
HAS A SUBSTANTIAL  RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION
EMBODIED  HEREBY,  AND IN  ALL  RESPECTS,  INCLUDING  MATTERS  OF  CONSTRUCTION,
VALIDITY AND PERFORMANCE,  THIS AGREEMENT AND THE OBLIGATIONS  ARISING HEREUNDER
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK APPLICABLE TO NOTES MADE AND PERFORMED IN SUCH STATE AND ANY APPLICABLE
LAW OF THE UNITED  STATES OF AMERICA.  IT BEING  UNDERSTOOD  THAT THE LAW OF THE
STATE OF NEW YORK SHALL GOVERN THE VALIDITY AND THE  ENFORCEABILITY OF THIS NOTE
AND ALL OF THE INDEBTEDNESS OR OBLIGATIONS  ARISING HEREUNDER OR UNDER ANY OTHER
LOCAN DOCUMENTS (EXCEPT AS EXPRESSLY  PROVIDED IN ANY OTHER LOAN DOCUMENTS).  TO
THE FULLEST EXTENT  PERMITTED BY LAW, LENDER AND OBLIGOR HEREBY  UNCONDITIONALLY
AND IRREVOCABLY WAIVE ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION
GOVERNS  THIS  NOTE,  AND  THIS  NOTE  SHALL BE  GOVERNED  BY AND  CONSTRUED  IN
ACCORDANCE  WITH THE LAWS OF THE SATE OF NEW YORK  PURSUANT TO ss. 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAWS.

19.  Notwithstanding  any thing to the  contrary  in this Note and to the extent
permitted by  applicable  law, if the  aggregate  amount of interest  payable in
respect of this Note and all other consideration which would constitute interest
for any interest  period under  applicable  law results in an effective  rate of
interest  for any  interest  period on this Note in excess of the  maximum  rate
permitted by law  applicable to this Note (after giving effect to any adjustment
permitted  by law to the interest  rate paid or payable in any interest  periods
other  than such  interest  period),  the  effective  rate of  interest  of such
interest period for this Note shall be limited to a rate of interest which would
not cause the effective rate to exceed the maximum legal rate.

20. Any forbearance by the Lender in exercising any right or remedy hereunder or
under any other Loan Document,  or otherwise  afforded by applicable  law, shall
not be a waiver of or preclude  the  exercise  of any such right or remedy;  nor
shall  any  single or  partial  exercise  of any such  right or  remedy,  or any
abandonment  or  discontinuance  of steps  to  enforce  such a right or  remedy,
preclude  any other or further  exercise  thereof or the  exercise  of any other
right or remedy.

         THE UNDERSIGNED AND ALL ENDORSERS AND GUARANTORS WAIVE TRIAL BY JURY.

         IN WITNESS WHEREOF, the undersigned have hereunto set its hand and seal
or caused these  presents to be signed by its proper  corporate  officer and its
proper corporate seal to be hereto affixed the day and year first written above.

WITNESS:                                    NOVEX SYSTEMS INTERNATIONAL, INC.

_/SS/ JANET L. DOWE________         BY__/SS/ DANIEL W. DOWE_________

                                                       Daniel W. Dowe

Secretary                                              President

<PAGE>

STATE OF NEW JERSEY        }

                                    }SS.:

COUNTY OF         PASSAIC  }

         I CERTIFY  THAT ON THE 13TH DAY OF AUGUST,  1999,  APPEARED  BEFORE ME,
DANIEL W. DOWE,  to me known,  who,  being BY ME DULY SWORN,  DID DEPOSE AND SAY
THAT HE IS THE PRESIDENT OF NOVEX SYSTEMS  INTERNATIONAL,  INC., the corporation
described in and which executed the foregoing instrument; that he knows the seal
of the  corporation;  that the seal affixed to the  instrument is such corporate
seal;  that  it was so  affixed  by  order  of the  board  of  directors  of the
corporation, and that he signed his name thereto by like order.

                                            ___/S/CHRISTINA BRUDIE ______

                                           Notary Public of New Jersey
                                           My Commission Expires 1/25/2001

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