Document:

ASSET ACQUISITION AGREEMENT

         THIS ASSET Acquisition  Agreement (the  "Agreement")  effective January
--, 2000, is by and between PSM Corp., a Nevada corporation ("PSM"),  having its
principal  offices  at 11300 W.  Olympic  Boulevard,  Suite  800,  Los  Angeles,
California   90064;  and  MENTOR  ON  CALL,  INC.,  an  International   Business
Corporation  organized  pursuant  to the laws of the Country of  Barbados,  West
Indies  ("MENTOR"),   and  with  respect  to  certain   representations,   those
shareholders   owning  a   controlling   interest  in  MENTOR   (the   "Majority
Shareholders").

                                    RECITALS:
                                    --------

         A. PSM desires to acquire all of the assets  identified  on Exhibit "A"
to this  Agreement  (the  "ASSETS"),  CONSTITUTING  A MAJORITY  OF THE ASSETS OF
MENR0R AND MENTOR  desires to sell all of the Assets in  exchange  for shares of
PSM authorized but unissued Common Stock as hereinafter provided.

         B. It is the  intention  of the  parties  hereto  that:  (i) PSM  shall
acquire  all or almost  all of the ASSETS OF MENTOR IN  EXCHANGE  SOLELY FOR THE
NUMBER OF shares of PSM's  authorized but unissued  shares of Common Stock,  par
value S.0001 ("Common Stock"),  set forth below (the  "Exchange");  and (ii) and
the  Exchange  shall  QUALIFY  AS  A  transaetion  in  securities   exempt  from
registration or qualification under the Securities Act of 1933, as amended,  and
under the  applicable  securities  laws of each  state or  jurisdiction  where a
majority of the shareholders of MENTOR (the "Shareholders") reside.

         C. THE BOARD OF DIRECTORS OF PSM DEEMS IT to be in the best interest of
PSM and its shareholders TO ACQUIRE THE ASSETS OF MENTOR.

         D. THE BOARD OF DIRECTORS OF MENTOR deems it to be in the best interest
of the  Shareholders  and of MENTOR  to  accept  the  Common  shares of PSM,  as
hereinafter provided.

         NOW, THEREFORE,  in consideration of the mutual covenants,  agreements,
representations and warranties  contained in this Agreement,  the parties hereto
agree as follows:

SECTION 1. EXCHANGE OFS]EIARES

         1.1 EXCHANAE OF SHAREA.  FSM AND MENTOR HEREBY AGREE THAT MENTOR shall,
on the Closing Date (as HEREINAFTER  DEFINED),  EXCHANGE A] OF THE ASSETS LISTED
ON EXHIBIT "A", OF MENTOR,  FOR 9,350,000  post-split Shares of PSM Common Stock
(the "PSM Shares"). The PSM Shares will be restricted against resale pursuant to
the provisions of Federal and State securities laws, and have

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         issuance and convertibility restrictions as set forth below. The Mentor
Assets to be tendered will represent  substantially all of the assets of Mentor.
The Mentor shares owned by each shareholder of MENTOR are set forth in Exhibit B
hereto.

         1.2 DELIVERY OF SHARES..  On the Closing  Date,  title to the Assets of
MENTOR to be xchanged for Shares of PSM will be delivered to PSM, fully executed
and  endorsed so as to make `SM the sole owner  thereof,  and a list setting for
the  disposition  of the  certificates  representing  the ommon  Shares  will be
delivered to PSM IDENTIFYING  THE RECIPIENTS OF THE PSM COMMON SHARES.  WITHIN 5
business days of the Closing Date,  PSM will deliver  certificates  representing
the PSM ;h&es to MENTOR, or as may be otherwise directed by MENToR.

         1.3  RESTRICTED  SECURITIES.  THE PSM Shares  have not been  registered
under the Securities Act of 1933, as amended (the "Securities Act"), and may not
be resold unless the resale thereof is egistered  under the Securities Act or an
exemption from such registration is available. Each :ertificate representing the
PSM Shares will have a legend thereon in substantially the following brm:

         The Shares  represented  by the  certificate  have not been  registered
         under the  Securities  Act of 1933, as amended (the "Act").  The shares
         have been acquired for investment and may not be sold or transferred in
         THE ABSENCE OF AN EFFECTIVE  REGISTRATION  Statement  for the resale of
         the shares under the Act unless in the opinion of counsel  satisfactory
         to the Company, registration is not required under the Act.

RECTION 2. REPRESENTATIONS AND WARRANRESOF MENTOR
 ------ -- --------------- --- ----------- ------

         MENTOR and the Majority Shareholders, jointly and not severally, hereby
represent and ?varrant as follows:

         2.1 ORGANIZATION AND GOOD STANDING. By the Closing Date, MENTOR will be
a ~orporation  duly ORGANIZED,  VALIDLY  EXISTING AND IN GOOD STANDING UNDER THE
LAWS OF THE COUNTRY OF 3ARBADOS. MENTOR has the CORPORATE POWER AND AUTHORITY TO
CARRY ON ITS BUSINESS AS PRESENTLY  ~ONDUCTED.  BY THE CLOSING DATE, MENTOR will
be  qualified  to do  business  in all  jurisdictions  where he failure to be so
qualified would have a material adverse effect on its business.

         2.2 CORPORATE  AUTHORITY.  MENTOR has the corporate power to enter into
this  Agreement  tad to perform its  obligations  hereunder.  The  execution and
delivery of this Agreement and the ;onsummation of the transaction  contemplated
hereby have been duly authorized by the Board of Directors and a majority of the
Shareholders of MENTOR. The execution and performance of this kgreement will not
constitute a material breach of any agreement,  indenture,  mortgage, license or
Dther instrument or document to which MENTOR is a party and will not violate any
JUDGMENT, DECREE, DRDER, WRIT, RULE, STATUTE, OR REGULATION APPLICABLE TO MENTOR
or its properties. The execution and

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performance of this Agreement will not violate or conflict with any provision of
the Certificate of Incorporation OR BY-LAWS OF MENTOR.

         2.3 OWNERSHIP OF SHARES. The Shareholders  described on Exhibit "B" are
the owners of record and  beneficially of the issued and  outstanding  shares of
capital  stock  of  MENTOR  as  described  therein.  Each  Majority  Shareholder
represents  and  warrants  that he, she or it owns such shares free and clear of
all rights,  claims, liens and encumbrances,  and the shares have not been sold,
pledged, assigned or otherwise transferred except pursuant to this Agreement.

         2.4  RECEIPT  OF  CORPORATE  INFORMATION;   INDEPENDENT  INVESTIGATION:
ACCESS. All requested publicly-available documents, records and books pertaining
to PSM  and  the  [`SM  Shares  have  been  delivered  to  MErcrort,  and to the
respective  Majority  Shareholder and/or its advisors.  All of the Shareholder's
questions and requests for information  have been answered to the  Shareholder's
satisfaction.  Shareholder acknowledges that Shareholder, in making the decision
to vote for the  exchange of the MENTOR  Assets for PSM Shares,  has relied upon
independent  investigations  made by it and  its  representatives,  if any,  and
Shareholder and such  representatives,  if any, have, prior to the Closing Date,
been given access to and the  opportunity to examine all material  contracts and
documents  relating to this offering and an opportunity to ask questions of, and
to receive  information  from, PSM or any person acting on its behaLf concerning
the terms and conditions of this Agreement Shareholder and its advisors, if any,
have been furnished with access to all publicly available  materials relating to
the business,  finances and operation of PSM and materials relating to the offer
and sale of the PSM  Shares  which  have  been  requested.  Shareholder  and its
advisors,  if any, have received  complete and satisfactory  answers to any such
inquiries.

         2.5  RISKS.  THE  SHAREHOLDER  ACKNOWLEDGES  AND  UNDERSTANDS  THAT THE
EXCHANGE FOR THE PSM Shares  involves a high degree of risk and is suitable only
for persons of adequate  financial  means who have no need for liquidity in this
investment  in that  (1) the  Shareholder  may  not be  able  to  liquidate  the
investment  in the event of an  emergency;  (ii)  transferability  is  extremely
limited; and (iii) in the event of a disposition, the Shareholder could sustain,
a complete  loss of its  entire  investment.  The  Shareholder  is  sufficiently
experienced  in fmancial and business  matters to be capable of  evaluating  the
merits and risks of an investment  in PSM; has evaluated  such merits and risks,
including risks particular to the Shareholder's  situation;  and the Shareholder
has  determined  that this  investment  is  suitable  for the  Shareholder.  The
Shareholder has adequate financial resources and can bear a complete loss of the
Shareholder's investment.

         2.6 INVESTMENT  INTENT.  The Shareholder hereby represents that the PSM
Shares,  if  not  to  be  retained  by  MENTOR,   are  being  acquired  for  the
Shareholder's  own account with no intention of distributing  such securities to
others. The Shareholder has no contract,  undertaking,  agreement or arrangement
with any person to sell,  transfer or otherwise  distribute  to any person or to
have any  person  sell,  transfer  or  otherwise  distribute  the Shares for the
Shareholder.  The Shareholder is presently not engaged, nor does the Shareholder
plan to engage within the presently  foreseeable  future, in any discussion with
any person regarding such a sale,  transfer or other  distribution of the Shares
or any interest therein.

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         2.7 COMPLIANCE WITH FEDERAL AND STATE  SECURITIES LAWS. THE SHAREHOLDER
UNDERSTANDS  THAT THE PSM SHARES HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES
ACT. THE SHAREHOLDER  UNDERSTANDS THAT THE PSM SHARES MUST be held  indefinitely
unless the sale or other transfer  thereof is subsequently  registered under the
Securities Act or an exemption from such  registration  is available.  Moreover,
the  Shareholder  understands  that its right to transfer the PSM Shares will be
subject to certain  restrictions,  which include  restrictions  against transfer
under the Securities Act and applicable  state  securities  laws. in addition to
such restrictions,  the Shareholder  realizes that it may not be able to sell or
dispose  of the PSM  Shares as there may be no public or other  market for them.
The Shareholder understands that certificates evidencing the Shares shall bear a
restrictive legend.

         2.8  APPROVALS.  No approval,  authorization,  consent,  order or other
action  of, or filing  with,  any  person,  firm or  corporation  or any  court,
administrative agency or other governmental  authority is required in connection
with the  execution  and delivery of this  Agreement by the  Shareholder  or the
consummation of the transactions described herein.

         2.9 NO GENERAL  SOLICITATIOJI.  Shareholder  is not  purchasing the PSM
Shares  because of or  following  any  advertisement,  article,  notice or other
communication published in any newspaper, magazine or similar media or broadcast
over  television  or radio,  or  presented  at any  seminar or  meeting,  or any
solicitation or a subscription by a person other than a representative of PSM.

         2.10 BOOKS AND RECORDS.  Attached as Exhibit 2.11 are  requisite  books
and records necessary to allow appraisal and valuation, for accounting purposes,
of the Assets. The books and records are in all respects complete and correct in
all material  respects and are  maintained in accordance  with good business and
accounting practices.

         2.11 NO MATERIAL ADVERSE CHANGES.  SINCE AUGUST 31, 1999, there has not
been:

                  (I) ANY MATERIAL ADVERSE CHANGE IN THE STATUS OF THE ASSETS OF
         MENTOR except changes arising in the ordinary course of business, which
         changes will in no event  materially AND ADVERSELY AFFECT THE VALUATION
         AND/OR UTILITY OF THE ASSETS BEING TRANSFERRED BY MENTOR;

                  (II) ANY DAMAGE,  DESTRUCTION OR LOSS MATERIALLY AFFECTING THE
         ASSETS OF MENTOR whether or not covered by insurance;

                  (iii) any sale of an Asset (other than in the ordinary  course
         of business) or any mortgage or pledge by MENTOR of any Assets; or

         2.12  NO  BREACH,  The  execution,  delivery  and  performance  of this
Agreement and the consummation of the transactions contemplated hereby wiU not:

                  (i) violate any provision of the Certificate of  Incorporation
         or By-Laws of MENTOR;

<PAGE>
                  (ii) violate,  conflict with or result in the breach of any of
         the terms of, result in a material  modification of, otherwise give any
         other contracting party the right to terminate,  or constitute (or with
         notice  or lapse of time,  or both  constitute)  a  default  under  any
         CONTRACT  OR OTHER  AGREEMENT  TO WHICH  MENTOR  is a party or by or to
         which it or any of its assets or properties may be bound or subject;

                  (iii)  violate  any  order,  judgment,  injunction.,  award or
         decree of any court,  ARBITRATOR OR  GOVERNMENTAL  OR  REGULATORY  BODY
         AGAINST,  OR BINDING UPON, MENTOR or upon the PROPERTIES OR BUSINESS OF
         MENTOR; or

                  (iv)  violate  any   statute,   law  or   regulation   of  any
         jurisdiction applicable to the transactions  contemplated herein `which
         could have a material,  adverse effect on the business or operations of
         MENTOR.

         2.13  ACTIONS AND  PROCEEDINGS.  MENTOR is not a party to any  material
pending  litigation  or, to the  knowledge of the Majority  Shareholders,  after
reasonable inquiry,  any governmental  investigation or proceeding NOT REFLECTED
IN THE  MENTOR  books and  records  concerning  the  Assets  and,  to their best
knowledge,  no material  LITIGATION,  CLAIMS,  ASSESSMENTS  OR  NON-GOVERNMENTAL
PROCEEDINGS  ARE THREATENED  AGAINST MENTOR with respect to the Assets except as
set forth on Schedule 2.14 attached hereto and made a part hereof.

         2.14  AGREEMENTS.  SCHEDULE  2.15 SETS FORTH ANY  MATERIAL  CONTRACT OR
ARRANGEMENT  TO WHICH  MENTOR  is a party  or by or to  which it or its  assets,
properties or business are bound or subject,  whether  written or oral and which
would have any impact on the ability to deliver the Assets unencumbered.

         2.15 BROKERS OR FINDERS. No broker's or finder's fee will be payable by
MENTOR in connection with the transactions  contemplated by this Agreement,  nor
will any such fee be incurred as a result of any actions by MENTOR or any of its
Shareholders.

         2.16  TARIGIBLE  ASSETS.  MENTOR  has  full  tide and  interest  in all
distance   learning   management    systems,    hardware   firewall   solutions,
patent-pending  filings with respect to these hardware  items,  and the patented
smart card identity and payment technology licensed,  owned or leased by MENTOR,
and any related  CAPITALIZED  ITEMS OR OTHER TANGIBLE  PROPERTY  MATERIAL TO THE
ASSETS BEING  DELIVERED  BY MENTOR (the  "Tangible  Assets"),  other than as set
forth in Section  2.19.  MENTOR holds all rights,  title and interest in all the
Tangible  Assets owned by it and being  transferred  pursuant to this  Agreement
free and clear of all liens, pledges, mortgages, security interests, conditional
sales  contracts or any other  encumbrances.  All of the Tangible  Assets are in
good  operating  condition  and repair and are usable in the ordinary  course of
business of MENTOR and conform to all applicable laws, ordinances and government
orders,  rules and  regulations  relating to THEIR  CONSTRUCTION  AND OPERATION,
EXCEPT AS SET FORTH ON SCHEDULE  2.19  HERETO.  MENTOR has clear title to all of
its  fictional  business  names,  trading  names,  registered  and  unregistered
trademarks, service marks and applications (collectively, the "Marks") and these
items of "Intel lectual Property"

<PAGE>

are included as Tangible Assets

         2.17   LIABILITIES.   MENTOR  DID  not  have  any  direct  or  indirect
indebtedness,   liability,  claim,  loss,  DAMAGE,  DEFICIENCY,   OBLIGATION  OR
RESPONSIBILITY,  KNOWN OR UNKNOWN, FIXED OR unfixed, liquidated or unliquidated,
secured or unsecured, accrued or absolute,  contingent or otherwise,  including,
without  limitation,  any liability on account of taxes, any governmental charge
or lawsuit  (all of the  foregoing  collectively  defined to as  "Liabilities"),
which are not fully,  fairly and  adequately  reserved on the books and records,
except for any specific  Liabilities  set forth on Schedule 2.20 attached hereto
and made a part  hereof.  As of the date of  CLOSING,  MENTOR  will not have any
material  liabilities,  other than liabilities fully and adequately reflected on
the books and records,  for which the Assets could stand as  collateral.  To the
best knowledge of the Shareholders,  there is no circumstance,  condition, event
or arrangement  which may hereafter give rise to any liabilities  allowing for a
claim against the Assets.

         2.18 ACCESS TO RECORDS.  The corporate books and records pertaining the
Assets and an evaluation of the Assets have been made  available to PSM prior to
the Closing hereof.

         2.19 FULL DISCLOSURE.  NO  REPRESENTATION  OR WARRANTY BY MENTOR or the
Majority  Shareholders  in this  Agreement  or in any document or schedule to be
delivered by them pursuant  hereto,  and no written  statement,  CERTIFICATE  OR
INSTRUMENT  FURNISHED  OR TO BE  FURNISHED  BY  MENTOR  PURSUANT  HERETO  OR ITT
connection  with the  negotiation,  execution or  performance  of this Agreement
contains or will  contain any untrue  statement  of a MATERIAL  FACT OR OMITS OR
WILL OMIT TO STATE ANY FACT  necessary to make any  statement  herein or therein
not  materially  misleading or necessary to a complete and correct  presentation
ofall material  aspects of the Assets BEING  TRANSFERRED  BY MENTOR,  AND/OR THE
STATUS OF THE MENTOR SHAREHOLDERS.

SECTION 3. REPRESENTATIONS AND WARRANTIES OF PSM

         PSM hereby represents and warrants as follows:

         3.1  ORGANIZATION  AND  GOOD  STANDING.   PSM  IS  A  CORPORATION  DULY
ORGANIZED,  VALIDLY existing and in GOOD STANDING UNDER THE LAWS OF THE STATE OF
NEVADA.  IT HAS THE CORPORATE  POWER TO own its own property and to CARRY ON ITS
BUSINESS  AS NOW BEING  CONDUCTED  AND IS DULY  QUALIFIED  TO DO BUSINESS in any
jurisdiction where so REQUIRED EXCEPT WHERE THE FAILURE TO SO QUALIFY WOULD HAVE
NO MATERIAL ADVERSE EFFECT ON ITS BUSINESS.

          3.2 CORPORATE  AUTHORITY.  PSM HAS THE  CORPORATE  POWER TO ENTER INTO
THIS  AGREEMENT  AND to perform ITS  OBLIGATIONS  HEREUNDER.  THE  EXECUTION AND
DELIVERY OF THIS AGREEMENT AND THE CONSUMMATION OF THE transactions CONTEMPLATED
HEREBY HAS BEEN,  ORWILL BE PRIOR TO THE CLOSING  DATE,  DULY  AUTHORIZED BY THE
BOARD OF  DIRECTORS  OF PSM AND A MAJORITY  OF THE  SHAREHOLDERS  AS REQUIRED BY
NEVADA LAW. THE EXECUTION AND  performance of this Agreement will not constitute
a  material  breach of any  agreement,  indenture,  mortgage,  license  or other
instrument or document to which PSM is

<PAGE>

a party and. will not violate any judgment,  decree, order, writ, rule, statute,
or regulation applicable to PSM or its properties. The execution and performance
of this  Agreement  will not  violate  or  conflict  with any  provision  of the
Articles of Incorporation or By-Laws of PSM.

         3.3 THE PSM  SHARES.  AT THE  CLOSING,  THE PSM SHARES TO BE ISSUED AND
DELIVERED  TO THE  SHAREHOLDERS  HEREUNDER  WILL WHEN SO ISSUED  AND  DELIVERED,
CONSTITUTE  VALID AND LEGALLY ISSUED SHARES OF PSM COMMON STOCK,  FULLY PAID AND
NONASSESSABLE, HAVING THE PREFERENTIAL RIGHTS SET FORTH IN SECTION 2.10 ABOVE.

          3.4 FINANCIAL STATEMENT: BOOKS AND RECORDS. FILED WITH THE SEC ARE THE
AUDITED FINANCIAL  statements (balance sheet, income statement and Notes) of PSM
for the period ended August 31, 1999. The Financial  Statements FAIRLY REPRESENT
THE  FINANCIAL  POSITION  OF PSM AS AT  SUCH  DATE  AND  the  results  of  their
operations for the periods then ended. The Financial Statements were prepared in
accordance with generally accepted accounting PRINCIPLES APPLIED ON A CONSISTENT
BASIS  WITH PRIOR  periods  except as  otherwise  stated  therein.  The books of
ACCOUNT AND OTHER  FINANCIAL  RECORDS OF PSM ARE IN ALL  RESPECTS  COMPLETE  AND
CORRECT IN ALL MATERIAL  RESPECTS and ARE  MAINTAINED  IN  ACCORDANCE  WITH GOOD
BUSINESS AND ACCOUNTING PRACTICES.

         3.5      NO MATERIAL ADVERSE CHANGES.
                  ------------------- -------

         EXCEPT AS DESCRIBED ON SCHEDULE 3.5,  since August 31, 1999,  there has
not been:

                           (i) any  material  adverse  changes  inthe  financial
                  position of PSM except CHANGES  ARISING IN THE ORDINARY COURSE
                  OF BUSINESS,  WHICH  CHANGES will in no event  materially  AND
                  ADVERSELY AFFECT THE FINANCIAL POSITION OF PSM.

                           (ii)  any  damage,  destruction  or  loss  materially
                  affecting  the assets,  prospective  business,  operations  or
                  condition  (financial  or  otherwise)  of PSM  whether  or not
                  covered by insurance;

                           (iii) any declaration setting aside or payment of any
                  dividend or  distribution  with respect to any  redemption  or
                  repurchase  ofPSM  capital  stock,  other than as agreed  upon
                  among the parties;

                           (iv) any sale of an asset,  or any mortgage pledge by
                  PSM of any properties or assets; or

                           (V) ADOPTION OR MODIFICATION  OF ANY PENSION,  PROFIT
                  SHARING, RETIREMENT, stock bonus, stock option or similar plan
                  or arrangement.

                           (vi)  except  in the  ordinary  course  of  business,
                  incurred or assumed any indebtedness or liability,  whether or
                  not currently due and payable;

<PAGE>

                           (vii)  any  loan  or  advance  to  any   shareholder,
                  officer,  director,  employee,   consultant,  agent  or  other
                  representative  or made any other  loan or  advance  otherwise
                  than in the ordinary course of business;

                           (viii) any  material  increase in the annual level of
                  compensation of any executive employee of PSM;

                           (ix)  except  in the  ordinary  course  of  business,
                  entered   into  or  modified   any   CONTRACT,   AGREEMENT  OR
                  TRANSACTION;

                           (X) ISSUED ANY EQUITY SECURITIES OR RIGHTS TO ACQUIRE
                  EQUITY SECURITIES, OTHER THAN AS set forth in Schedule 3.5.

         3.6 TAXES. PSM HAS FILED ANY TAX, GOVERNMENTAL AND/OR RELATED FORMS AND
REPORTS (OR extensions  THEREOF) DUE OR REQUIRED TO BE FILED.  PSM'S ACCOUNTANTS
ARE IN THE  PROCESS OF FILING  PSM'S TAX  RETURNS.  TO THE best of  managements'
knowledge,  PSM's tax returns will reflect losses for such periods and any taxes
due as a RESULT OF SUCH RETURNS WILL NOT HAVE A MATERIAL ADVERSE EFFECT ON PSM.

         3.7 COMPLIANCE WITH LAWS.  EXCEPT AS DESCRIBED ON SCHEDULE 3.7, PSM has
complied  with  all  federal,   STATE,   COUNTY  AND  LOCAL  LAWS,   ORDINANCES,
REGULATIONS,  INSPECTIONS,  ORDERS,  JUDGMENTS,  INJUNCTIONS,  AWARDS OR DECREES
APPLICABLE TO IT OR ITS BUSINESS,  WHICH, IF NOT COMPLIED WITH, WOULD MATERIALLY
AND ADVERSELY AFFECT THE BUSINESS OF PSM.

         3.8 ACTIONS AND PROCEEDINGS. PSM IS NOT A PARTY TO ANY MATERIAL PENDING
LITIGATION OR, TO ITS KNOWLEDGE,  ANY  GOVERNMENTAL  PROCEEDINGS  ARE THREATENED
AGAINST PSM.

         3.9 CAPITALIZATION.  AS OF THE CLOSING DATE, THERE ARE APPROXIMATELY 46
SHAREHOLDERS  OF record  that are the owners of  4,500,000  shares of PSM Common
Stock, none of which owns in excess of 5% of the issued and OUTSTANDING  SHARES,
EXCEPT AS MAY BE SET FORTH IN PSM'S  PERIODIC  REPORTS FILED with the SEC. There
are no  OUTSTANDING  WARRANTS,  ISSUED  STOCK  OPTIONS,  STOCK  RIGHTS  OR OTHER
COMMITMENTS OF ANY CHARACTER RELATING TO THE ISSUED OR UNISSUED SHARES OF EITHER
COMMON STOCK OR PREFERRED STOCK, IF ANY, OF PSM.

          3.10 ACCESS TO RECORDS. THE CORPORATE FINANCIAL RECORDS, MINUTE BOOKS,
AND OTHER  DOCUMENTS AND RECORDS OF PSM HAVE BEEN MADE AVAILABLE TO MENTOR PRIOR
TO THE CLOSING HEREOF.

         3.11  NO  BREACH.  THE  EXECUTION,  DELIVERY  AND  PERFORMANCE  OF THIS
AGREEMENT AND THE CONSUMMATION OF THE transactions contemplated hereby will not:

                  (I) VIOLATE ANY PROVISION OF THE ARTICLES OF  INCORPORATION OR
         BY-LAWS OF NM;

<PAGE>

                  (ii) violate,  conflict with or result in the breach of any of
         the material terms of, result in a material  modification of, otherwise
         give any other contracting party the right to terminate,  or constitute
         (or with notice or lapse of time or both  constitute) a default  under,
         any  contact  or other  agreement  to which  PSM is a party or by or to
         which it or any of its assets or properties may be bound or subject;

                  (iii) violate any order, judgment, injunction, award or decree
         of any court, arbitrator or governmental or regulatory body against, or
         binding  upon,  PSM or upon the  securities,  properties or business to
         PSM; or

                  (iv)  violate  any   statute,   law  or   regulation   of  any
         jurisdiction applicable to the transactions  contemplated herein, which
         violation  could  have a material  adverse  effect on the  business  or
         operations of PSM.

         3.12 BROKERS OR FINDERS. No broker's or finder's fee will be payable by
PSM in connection with the transactions contemplated by this Agreement, nor will
any such fee be incurred as a result of any actions of PSM.

         3.13  CORPORATE  AUTHORITY.  PSM has the corporate  power to enter into
this  Agreement  and  to  perform  its  respective  obligations  hereunder.  The
execution and delivery of this Agreement and the consummation of the transaction
contemplated  hereby have been duly  authorized  by the Board of Directors and a
majority of the  Shareholders  of PSM. The  execution  and  performance  of this
Agreement  will not constitute a material  breach of any  agreement,  indenture,
mortgage,  license or other  instrument  or document to which PSM is a party and
will not violate any judgment, decree, order, writ, rule, statute, or regulation
applicable  to PSM or its  properties.  The execution  and  performance  of this
Agreement will not violate or conflict with any provision of the  Certificate of
Incorporation or by-laws of PSM.

         3.14 FULL  DISCLOSURE.  No  representation  or  warranty by PSM in this
Agreement  or in any  document  or  schedule to be  delivered  by them  pursuant
hereto, and no written statement,  certificate or instrument  furnished or to be
furnished  by  PSM  pursuant  hereto  or in  connection  with  the  negotiation,
execution or performance  of this Agreement  contains or will contain any untrue
statement of a material  fact or omits or will omit to state any fact  necessary
to make any statement  herein or therein not materially  misleading or necessary
to complete and correct  presentation of all material aspects of the business of
PSM.

         3.15  REPORTIPG_COMPANY  STATUS.  PSM is a reporting  company under the
auspices of Section 12(g) of the  Securities  Act of 1933, and may be identified
by its Corporate  Identification  Code ("CIK") number of 0001096298 for locating
its filings on the  Electronic  Data  Gathering and Retrieval  system  ("EDGAR")
maintained by the United States Securities and Exchange Commission ("SEC").

<PAGE>

SECTION 4. CONDITIONS PRECEDENT

         4.1 CONDITIONS  PRECEDENT TO THE OBLJGATION OF MEIRROR AND THE MAJORITY
SHAREHOLDERS. All OBLIGATIONS OF MENTOR and the Majority Shareholders under this
Agreement are subject to the  fiulfillment,  prior to or as of the Closing Date,
as indicated below, of each of the following conditions:

                           (a)  The  representations  and  warranties  by  or on
                  behalf  of  PSM   contained  in  this   Agreement  or  in  any
                  certificate or document  delivered  pursuant to the provisions
                  hereof  shall be true in all  material  respects  at and as of
                  Closing  Date as though such  representations  and  warranties
                  were made at and as of such time.

                           (b) PSM shall  have  performed  and  complied  in all
                  material  respects,  with  all  covenants,   agreements,   and
                  conditions set forth in, and shall have executed and delivered
                  all  documents  required by this  Agreement to be performed or
                  complied with or executed and delivered by them prior to or at
                  the Closing.

                           (c) On or before the Closing,  the Board of Directors
                  and a majority of the shareholders of PSM shall have approved,
                  in  accordance  with Nevada law, the  execution,  delivery and
                  performance  of this  Agreement  and the  consummation  of the
                  transaction  contemplated  herein  and  authorized  all of the
                  necessary and proper  actions to enable PSM to comply with the
                  terms of the Agreement.

                           (d) PSM shall  have  sufficient  shares of PSM Common
                  Stock authorized but unissued to complete the Exchange.

                           (e) All instruments and documents delivered to MENTOR
                  and the  Shareholders  pursuant to provisions  hereof shall be
                  reasonably satisfactory to legal counsel for MEN'rOR.

         4.2   CONDITIONL   PRECEDENT  TU  THE   OBLIGATIONS   OF  PSM  AND  PSM
SHAREHOLDERS.  All  obligations  of PSM under this  Agreement are subject to the
fulfillment, prior to or at Closing, of each of the following conditions:

                           (a) The representations and warranties by MErcroa and
                  its Majority  Shareholders,  contained in this Agreement or in
                  any  certificate  or  document   delivered   pursuant  to  the
                  provisions  hereof shall be true in all  material  respects at
                  and as of the  Closing  as  though  such  representations  and
                  warranties were made at and as of such time;

                           (B) MENTOR and its Shareholders  shall have performed
                  and  complied  with,  in  all  material  respects,   with  all
                  covenants,  agreements, and conditions set forth in, and shall
                  have executed and  delivered  all  documents  required by this
                  Agreement

<PAGE>

                  to be performed or complied or executed and  delivered by them
                  prior to or at the Closing;

SECTION 5. COVENANTS

         5.1 CORPORATE  EXAMINATIONS  AND  INVESTIGATIONS.  Prior to the Closing
Date,  the  parties  acknowledge  that they have been  entitled,  through  their
employees  and  representatives,  to  make  such  investigation  of the  assets,
properties,  business and operations,  books, records and financial condition of
the other as they each may reasonably  require.  No  investigations,  by a party
hereto shall, however, diminish or waive any of the representations, warranties,
covenants or agreements of the party under this Agreement.

         5.2 FURTHER  ASSUIANCES.  The parties shall execute such  documents and
other  papers and take such  further  actions as may be  reasonably  required or
desirable to carry out the provisions  hereof and the transactions  contemplated
hereby.  Each such  party  shall use its best  efforts  to fulfill or obtain the
fulfillment of the conditions to the Closing, including, without limitation, the
execution  and delivery of any  documents or other  papers,  the  execution  and
delivery of which are necessary or appropriate to the Closing.

         5.3  CONFIDENTIALITY~,  In the event the  transactions  contemplated by
this Agreement are not CONSUMMATED,  PSM, MENTOR and the  Shareholders  agree to
keep  confidential  any  information  disclosed  to  each  other  in  connection
therewith  for a period  of three  (3)  years  from  the date  hereof  provided,
however, such obligation shall not apply to information which:

                  (i) at the time of the disclosure was public knowledge;

                  (ii) after the time of  disclosure  becomes  public  knowledge
         (except due to the action of the receiving party);

                  (iii) the  receiving  party had within its  possession  at the
         time of disclosure; or

                  (iv) is ordered disclosed by a Court of proper jurisdiction.

SECTION 6. SURVIVAL OF REPRESENTATIONS AND WARRANTIES

         Notwithstanding any right of either party to investigate the affairs of
the other  party and its  Shareholders,  each  party has the right to rely filly
upon  representations,  warranties,  covenants and agreements of the other party
and its Shareholders contained in this Agreement or in any document delivered to
one by the  other  or any of  their  representatives,  in  connection  with  the
transactions   contemplated  by  this  Agreement.   All  such   representations,
warranties, covenants and agreements

<PAGE>

shall survice the execution  and delivery  hereof and the closing  hereunder for
one year following the Closing.

SECTION 7. INDEMNIFICATION

         For a period of three (3) years  from the  Closing,  MENTOR's  Majority
Shareholders  jointly and severally agree to indemnify and hold harmless PSM its
officers, directors and principal shareholders,  and PSM agrees to indemnify and
hold  harmless  the  MENTOR  Shareholders,  at all times  after the date of this
Agreement against and in respect of any liability,  damage,  or deficiency,  all
actions,  suits,  proceedings,   demands,  assessments,   judgments,  costs  and
expenses, including attorneys' fees, incident to any of the foregoing, resulting
from  any  material  misrepresentation  made  by any  indemnifying  party  to an
indemnified  party, an indemnifying  party's breach of a covenant or warranty or
an indemnifying party's  nonThlfillment of any agreement hereunder,  or from any
material  misrepresentation or omission from any certificate  furnished or to be
furnished hereunder.

         If the indemnified party receives written notice of the commencement of
any legal  action,  suit or  proceeding  with respect to which the  indemnifying
party  is or may be  obligated  to  provide  indemnification  pursuant  to  this
Section,  the  indemnified  party  shall,  within 30 days of the receipt of such
written  notice,  give the  indemnifying  party written notice thereof (a "Claim
Notice").  Failure to give such Claim Notice within such 30 day period shall not
constitute  a  waiver  by the  indemnified  party  or its  rights  to  indemnity
hereunder  with respect to such action,  suit or  proceeding  unless the defense
thereof is prejudiced thereby. Upon receipt by the indemnifying party of a Claim
Notice from the indemnified party with respect to any claim for  indemnification
which is based upon a claim made by a third  party  ("Third  Party  Claim),  the
indemnifying  party may assume the defense of the Third Party Claim with counsel
of its own choosing,  as described below. The indemnified  party shall cooperate
in the  defense  of the  Third  Party  Claim  and shall  furnish  such  records,
information   and   testimony  and  attend  all  such   conferences,   discovery
proceedings,  hearings,  trials and  appeals as may be  reasonably  required  in
connection  therewith.  The indemnified party shall have the right to employ its
own counsel in any such action,  but the fees and expenses of such counsel shall
be at the expense of the indemnified  party unless the indemnifying  party shall
not have with reasonable  promptness  employed  counsel to assume the defense of
the Third  Party  Claim,  in which event such fees and  expenses  shall be borne
solely by the indemnifying  party.  The indemnifying  party shall not satisfy pr
settle any Third  Party Claim for which  indemnification  has been sought and is
available hereunder, without the prior written consent of the indemnified party,
which  consent  shall  not be  delayed  or which  shall not be  required  if the
indemnified  party  is  granted  a  release  in  connection  therewith.  If  the
indemnifying  party shall fail with  reasonable  promptness to defend such Third
Party Claim, the indemnified party may defend, satisfy or settle the Third Party
Claim at the expense of the indemnifying  party and the indemnifying party shall
pay to the  indemnified  party the  amount of such Loss  within  ten days  after
written demand thereof The  indemnification  provisions hereof shall survive the
termination of this Agreement.

<PAGE>

      SECTION 8. DOCUMENTSAT CLOSING AND THE CLOSING

         8.1 DOCUMENTS AT CLOSING.  AT the Closing,  the following  transactions
shall occur, all of such transactions being deemed to occur simultaneously:

                  (A)      MENTOR WILL  DELIVER,  OR WILL CAUSE TO BE DELIVERED,
                           TO PSM the following:

                           (i) a  certificate  executed  by  the  President  and
                  Secretary of MENTOR to the effect that all representations and
                  warranties  made by MENTOR under this  Agreement  are true and
                  correct as of the Closing, the same as though originally given
                  to PSM on said date;

                           (ii) evidence  from the Country of Barbados  dated at
                  or about the  Closing  to the  effect  that  MENTOR is in good
                  standing under the laws of said Country;

                           (III) MENTOR and its  Shareholders  shall  deliver an
                  opinion of its legal counsel to PSM to the effect that:

                                    (a) MENTOR is a corporation validly existing
                           and in good  standing  under the laws of the Barbados
                           is duly qualified to do business in any  jurisdiction
                           where so  required  except  where the  failure  to so
                           qualify would have no material  adverse impact on the
                           company;

                                    (B) MENTOR has the corporate  power to carry
                           on its business as now being conducted; and

                                    (c) this Agreement has been duly authorized,
                           executed and delivered by MENTOR.

                           (iv) instruments of title  representing  those Assets
                  of MENTOR to be  exchanged  for PSM Shares will be  delivered,
                  along with duly executed Bills of Sale or other instruments of
                  transfer (such as sub-licensing  agreements) transferring such
                  Assets to PSM.

                           (v) all  other  items,  the  delivery  of  which is a
                  condition precedent to the OBLIGATIONS OF PSM, as set forth in
                  Section 4.

                  (B)      PSM WILL  DELIVER OR CAUSE TO BE  DELIVERED TO MENTOR
                           AND THE MENTOR Shareholders:

                           (I) A CERTIFICATE  FROM PSM EXECUTED BY THE PRESIDENT
                  OR  SECRETARY  OF PSM, to the effect that all  representations
                  and  warranties of PSM made under this  Agreement are true and
                  correct  as of the  Closing,  the saute as  though  originally
                  given

<PAGE>

                  TO MENTOR on said date;

                           (ii)  certified  copies of resolutions by PSM's Board
                  of Directors  authorizing this TRANSACTION;  AND AN OPINION OF
                  PSM COUNSEL AS DESCRIBED IN SECTION 4 above;

                           (iii)  evidence  from the Nevada  Secretary  of State
                  dated  at or  about  the  Closing  Date  that  FSM is in  good
                  standing under the laws of said State;

                           (iv) an opinion of counsel to the effect that:

                                    (I)      PSM   is  a   corporation   validly
                                             existing and in good standing under
                                             the laws of the State of Nevada;

                                    (2)      This   Agreement   has  been   duly
                                             authorized  executed and  delivered
                                             by PSM and is a valid  and  binding
                                             obligation  of PSM  enforceable  in
                                             accordance with its terms;

                                    (3)      PSM, through its Board of Directors
                                             and its shareholders, has taken all
                                             corporate   action   necessary  for
                                             performance under this Agreement;

                                    (4)      The    documents    executed    and
                                             delivered to MErcroR and the MENTOR
                                             Shareholders  hereunder  are  valid
                                             and  binding  in  accordance   with
                                             their  terms to the  shares  of PSM
                                             Shares  to be  issued  pursuant  to
                                             Section 1.1 hereof, and such Shares
                                             will be duly  and  validly  issued,
                                             fttlly paid and non-assessable; and

                                    (5)      PSM  has  the  corporate  power  to
                                             execute the Agreement,  deliver the
                                             Shares  and   perform   under  this
                                             Agreement.

                           (v)  consent  of  Shirley  Bethurum,  sole  director,
                  designating and appointing new directors and officers:  (James
                  N.    Rodgers,    PresidentiDirector,    Edwin   W.    Austin,
                  Secretary/Director and David C. Smith, Director);

                           (vi)  resignation  of Shirley  Bethurum as an officer
                  and director;

                           (vii) all other  items,  the  delivery  of which is a
                  condition precedent to the obligations of MENTOR, as set forth
                  in Section 4 hereof.

         8.2 THA CLOSING.  The Closing  shall take place at the time or place as
may be agreed upon by the parties  hereto.  At the  Closing,  the parties  shall
provide each other with such documents as may be necessary.

<PAGE>

SECTION 9. MISCELLANEOUS

         9. 1 WAIVERS.  The waiver of a breach of this  Agreement or the failure
of any party hereto to exercise any right under this  Agreement  shall in no way
constitute waiver as to future breach whether similar or dissimilar in nature or
as to the exercise of any further right under this Agreement.

         9.2  AMENDMENT.  This  Agreement  may be amended or modified only by an
instrument  of equal  formality  signed by the  parties  or the duly  authorized
representatives of the respective parties.

         9.3 ASSIGNMENT. This Agreement is not assignable except by operation of
law.

         9.4 NOTICE. Until otherwise specified in writing, the mailing addresses
and fax numbers of the parties of this Agreement shall be as follows:

                  To:   PSM:

                           Shirley Bethurum

                           11300 W. Olympic Boulevard, Suite 800
                           Los Angeles, California 90064

                  TO: MENTOR:

                           James N. Rodgers
                           Suite 3, 765 Marlee Avenue
                           Toronto, Ontario, Canada M6B 3J8

Any notice or statement  given under this Agreement shall be deemed to have been
given if sent by  registered  mail  addressed  to the other party at the address
indicated  above or at such other  address  which shall have been  furnished  in
writing to the addressor.

         9.5 (LOVERNING  LAW. This Agreement  shall be construed,  and the legal
relations be the parties determined, in accordance with the laws of the State of
Nevada,  thereby  precluding  any  choice of law  rules  which  may  direct  the
application of the laws of any other jurisdiction.

         9.6 PUBLICITY.  No publicity  release or  announcement  concerning this
Agreement  or the  transactions  contemplated  hereby  shall be issued by either
party hereto at any time from the signing  hereof  without  advance  approval in
writing of the form and substance by the other party.

         9.7 ENTIRE  AGREEMENT.  This  Agreement  (including  the  Exhibits  and
Schedules  to be attached  hereto)  and the  collateral  agreements  executed in
connection with the consummation of the transactions contemplated herein contain
the entire agreement among the parties with respect to the

<PAGE>

hereof  without  advance  approval in writing of the form arid  substance by the
other party.

         9.7 ENTIRE  AGREEMENT.  This  Agreement  (including  the  Exhibits  and
Scbedules  to be attached  hereto)  AND THE  COLLATERAL  AGREEMENTS  EXECUTED IN
CONNECTION  with the  consu.rnmation  of the  transactions  contemplated  BERETH
CONTAIN THE ENTIIE  AGREEMENT  AMONG THE PARTIES WITH RESPECT TO THE EXCHANGE OF
THE  ASSETS  AND  ISSUANCE  OF THE PSM  Shares  and  relaxed  traiiactions,  and
supersede all prior agrveznents, written or oral, with respect.thereto.

         92 HEADINGS The headings in this  A&eement axe for  reference  purposes
only and shall not in any way  affect  the  meaning  or  interpretation  of this
Awwnent

         9.9 SEVERABILITY OF PROVISIONS,  THE INVALIDITY OR  WIENFORCEABILITY OF
ANY  TERM,  PHRASE,  clause,  paragraph,  restriction,  covenant,  agreement  or
provision of this  Agreement  shall in no way affect the validity or ENFORCEMENT
OF ANY OTHER PROVISION or any part thereof.

         9.10  COUNTERRARTS  THIS  AGREEMENT  MAY BE  EXECUTED  IN ANY NUMBER OF
COUNTERPARTS,  EACH OF WHICH WHEN SO EXECUTED, SHALL CONSTITUTE AN OZIGINAL COPY
HEMOF, BUT ALL OF WHICH TOGETHER SHALL consider but one ad the same document.

         9.11 BINDING  EFFECT This  Agreement  shall be binding upon the parties
hereto  and  inure  to the  benefit  of the  parties,  their  respective  heirs,
adrthnistraxors, executors, successors and assigns.

         9.12  TAX  TREATMENT   PSM,   Mentor  and  the  Majority   Shareholders
acknowledge  that they each have been  represented  by their o~t tax advisors in
connection with this transaction; that none of them has made a REPRESENTATION OR
WANANTY TO ANY OF THE OTHER PARTIES WITH RESPECT TO the tax  trenrncct  accorded
this  transaction,  or the effect  iSividually or ccrporattly on any party under
the  applicable tax laws,  regu.latio~,  or  INTNPRETATIONC  AND THAT NO OPINION
OICCUNSEL OR PRIVATE  revenue Sing has been obtained with respect to the effects
of this transaction under the Code.

         9.13 PRESS RELEASES.  The parties will mutually agree as to the wording
and timing of any thfonnational releases concerning this tansaction prior to and
through Closing.

         IN WITNESS WHEREOF, theparties have executed this Agreement on the date
first above written.

                                                     PSM CORP. (NEVADA)
                                                     a Neva corporation
                                                     BY:
                                                        -----------------------
                                                        Shirley Bethrum,
                                                        President

<PAGE>

                           MENTOR ON CALL, INC.
                           a Barbadian International Business Corporation

                           By: ____________________
                              James N. Rodgers
                              Managing Director

SHAREHOLDER SIGNATURES ON NEXT PAGE

<PAGE>

     "MAJORITY SHAREHOLDERS:"

James N. Rodgers (25%)

EDWTN W. Austin (25%)

John J. Pritchard (25%)

JASON R. FIGUEROA (25%)

TOTAL APPROVING AGREEMENT: 100.0%

<PAGE>

EXHIBITS

A Description of the MENTOR Assets being transferred in exchange for the Shares

B List of MENTOR shareholders (See table above) Total Number: 4

SCHEDULES

          MENTOR SCHEDULES

2.11      MENTOR Books and Records
2.15      MENTOR Significant contracts:
2.19      List of exceptions to Tangible Assets

          PSM SCHEDULES

3.4       PSM Financial Statements

3.5       LIST OF material adverse changes
3.7       Compliance with Laws

<PAGE>

                                   EXHIBIT "A"

                 DESCRIPTION OF MENTOR ASSETS BEING TRANSFERRED
                           IN EXCHANGE FOR THE SHARES

<PAGE>

                                   EXHIBIT "B"

                          LIST OF MENTOR SHAREHOLDERS

-------------------------------------------------------------------------------
NAME OF SHAREHOLDER OF        APPROXIMATE PERCENTAGE        NUMBER OF SHARES OF
MENTOR                              OF HOLDING              MENTOR COMMON STOCK
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
JAINESN. RODGERS                       25%                                25
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
EDWINW. AUSTIN                         25%                                25
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
JOHN J. PRITCHARD                      25%                                25
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
JASON R. FIGUEROA                      25%                                25
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
TOTAL:
-------------------------------------------------------------------------------

NOTE:    SHARES OF PSM TO BE ISSUED WILL BE IN THE NAME OF "MENTOR ON CALL, INC.
         ", A BARBADIAN INTERNATIONAL BUSINESS CORPORATION.UNANIMOUS SHAREHOLDERS AGREEMENT

Between:

                                JAMES N. RODGERS
                            of the City of Vancouver,
                          Province of British Columbia,
                                     Canada
                     (hereinafter referred to as "Rodgers")

                                                              OF THE FIRST PART,

And

                                 EDWIN W. AUSTIN
                             of the City of Toronto,
                              Province of Ontario,
                                     Canada
                      (hereinafter referred to as "Austin")

                                                             OF THE SECOND PART,
And

                                JOHN J. PRITCHARD
                             of the City of Toronto,
                              Province of Ontario,
                                     Canada
                    (hereinafter referred to as "Pritchard")

                                                              OF THE THIRD PART,
And

                               JASON 14. FIGUEROA
                             of the City of Toronto,
                              Province of Ontario,
                                     Canada
                     (hereinafter referred to as "Figueroa")

                                                             OF THE FOURTH PART,

And

                              MENTOR ON CALL, INC.
             A corporation existing under the laws of Nevada, U.S.A.
                      (hereinafter referred to as "Mentor")

                                                              OF THE FIFTH PART,

<PAGE>

And

                          MENTOR ON CALL HOLDINGS, INC.
        A CORPORATION TO BE INCORPORATED UNDER THE LAWS OF BARBADOS, W.I.
                     (hereinafter referred to as "Holdings")

                                                              OF THE SIXTH PART.

                                    RECITALS

         WHEREAS  Rodgers,  Austin,  Pritchard and Figueroa (or nominees) own in
equal  amounts as the  registered  and  beneficial  owners all of the issued and
outstanding and authorized  shares of Holdings and all of the restricted  shares
of Mentor;

         AND WHEREAS Rodgers, Austin,  Pritchard,  Figueroa, Mentor and Holdings
wish to establish  their  respective  rights and  obligations  in respect of the
shares of Holdings and Mentor now or hereafter owned by them,  respectively,  in
respect of the  management  and  control of each of  Holdings  and Mentor and in
respect of the other matters set forth in this Agreement;

         AND  Wi-IEREAS  it is the  intention  of each of the parties  that this
agreement constitute a unanimous  shareholder  agreement with respect to each of
Holdings and Mentor.

         NOW THEREFORE THIS AGREEMENT  WITNESSES  that in  consideration  of the
respective  covenants  and  agreements of the parties  contained  herein and for
other good and valuable  consideration (the receipt and sufficiency of which are
hereby acknowledged by each of the parties) it is hereby agreed as follows:

                                    ARTICLE 1

                  DEFINITIONS AND PRINCIPLES OF INTERPRETATION

1. I Definitions

         Where used in this Agreement,  unless there is something in the context
or the subject matter inconsistent therewith, the following terms shall have the
following meanings, respectively:

         (a)  "Agreement"  means this agreement and any instrument  supplemental
hereto and the  expressions  "Article",  "section",  "subsection"  and  "clause"
followed by a number  and/or a letter mean and refer to the  specified  Article,
section, subsection or clause of this Agreement;

         (b)  "Eligible   Transferee"   means,  in  respect  of  any  particular
Shareholder:

                  (i) a  corporation  of  which  such  Shareholder  is the  sole
         registered and beneficial

<PAGE>

shareholder;

                  (ii)  a  trust  of  which   such   Shareholder   is  the  sole
         beneficiary; and

                  (iii) if the  Shareholder is a corporation,  any person who is
         the sole registered and beneficial shareholder of such Shareholder;

         (c) "Holdings  Shares" means all of the authorized  capital of Holdings
as constituted at the date hereof,  any other securities into which these shares
may   be   converted,   exchanged,   reclassified,   redesignated,   subdivided,
consolidated or otherwise changed from time to time;

         (d)  "Messrs.   Rodgers,  Austin,  Pritchard  and  Figueroa  Employment
Contracts"  means the terms and  conditions  of  employment  between  Mentor and
Rodgers,  Austin,  Pritchard and Figueroa  dated the date hereof and attached as
Schedule A;

         (e)  "Permanent  Incapacity"  means,  with  respect to any person,  the
condition that will be deemed to exist where:

         (i) such  person  has been  declared  bankrupt  by a court of final and
competent jurisdiction;

         (ii) such person has made an assignment for the benefit of creditors;

         (iii)  such  person  has  been   declared  by  a  court  of   competent
jurisdiction  to be mentally  incompetent  and such  declaration has not, at the
relevant time, been revoked;

         (iv) such person becomes unable, by reason of illness,  disease, mental
or physical  disability or incapacity or otherwise,  to perform,  his duties for
Mentor or Holdings:

                  (A) for a period of 180 consecutive days; or

                  (B) FOR 270 DAYS IN THE  AGGREGATE  DURING  ANY  PERIOD OF 365
         consecutive days;

provided  that in the  event a  qualified  medical  doctor  certifies  that  the
person's illness, disease,  disability or incapacity is not permanent but merely
temporary  and that the person shall be fully  recovered and able to perform the
duties of a chief executive  officer of a distance  learning  company within 180
days of the date of the certificate,  then such illness, disease,  disability or
incapacity shall not be deemed to constitute "Permanent Incapacity";

         (f)  "person"  includes  an  individual,  a  firm,  a  corporation,   a
syndicate,  a  partnership,  a  trust,  an  association,  a  joint  venture,  an
unincorporated organization and every other legal or business entity whatsoever;

         (g) "Related  Party"  means,  in relation to any  Shareholder  or other
person (the "Subject

<PAGE>

Party"), any person who is:

                  (i) a  corporation  of which the  Subject  Party  beneficially
         owns, directly or indirectly,  voting securities carrying more than 10%
         of  the  voting  rights  attached  to  all  voting  securities  of  the
         corporation for the time being outstanding;

                  (ii) an affiliate of the Subject Party;

                  (iii) a partner of the Subject Party;

                  (iv) a trust  or  estate  in which  the  Subject  Party  has a
         substantial beneficial interest or as to which the Subject Party serves
         as trustee or in a similar capacity;

                  (v) a relative of the Subject Party;

                  (vi) a person of the opposite sex to whom the Subject Party is
         married  or with  whom  the  Subject  Party  is  living  in a  conjugal
         relationship outside marriage;

                  (vii) a relative of a person  mentioned in clause (vi) who has
         the same home as the Subject Party; or

                  (viii) a current or former director,  officer,  shareholder or
         employee of any  corporation or business in which the Subject Party has
         or had substantial beneficial interest;

         (h)  "shareholders" shall mean Rodgers, Austin, Pritchard and Figueroa;

         (i)  "transfer"  of a Share  includes  any  sale,  exchange,  transfer,
assignment,  gift,  pledge,  encumbrance,  hypothecation,  alienation  or  other
transaction, whether voluntary, involuntary or by operation of law, by which the
legal or beneficial  ownership of, or any security interest or other interest in
the  Share,  passes  from one  person  to  another,  or to the same  person in a
different  capacity,  whether or not for value, and any change of control of the
legal or beneficial owner of the Share or any person that controls,  directly or
indirectly,  in any manner  whatsoever,  such legal or  beneficial  owner of the
Share,   other  than  in  involuntary  change  of  control  resulting  from  the
tansmission  of securities  from a deceased or  incompetent  Shareholder  to his
estate or legal personal  representative for so long as the securities  continue
to be  held  by the  estate  or  such  legal  personal  representative,  and "to
transfer",  "transferred"  and  similar  expressions  shall  have  corresponding
meanings;

         (j) "vend agreement"  means the asset sale contract  whereby  Pritchard
and  Figueroa  transfer  all  title and right to the  distance  learning  system
including  source  code,   functional   specifications,   drawings,   prototype,
copyright, patent rights and rights of authorship in consideration of restricted
shares in Mentor as  enunciated  in this vend  agreement  which is attached as a
Schedule B and as defined in article 2.7.

<PAGE>

 1.2     Schedules

         Schedule A - Employment Agreements

         Schedule B - Vend Agreement

         Schedule C - Escrow Agreement

         Schedule D - Life Insurance Policies

 1.3     Gender/Numbers

         Words  importing the singular  number only shall include the plural and
vice versa and words importing the use of any gender shall include both genders.

 1.4     Headings

         The Article and section  headings in this Agreement are included herein
for  convenience  of  reference  only and  shall not  constitute  a part of this
Agreement for any other purpose.

 1.5     Proper Law

         This Agreement and all documents  ancillary hereto shall be governed by
and  interpreted in accordance  with the laws of the Province of Ontario and the
federal laws of Canada applicable therein.

 1.6     Business Days

         If any act is  required  hereunder  to be done,  any notice is required
hereunder  to be given or any period of time is to expire  hereunder  on any day
that is not a  Business  Day,  such act shall be  required  to be done or notice
shall be  required  to be  given or time  shall  expire  on the next  succeeding
Business Day.

 1.7     Reclassification of Shares

         The provision of this Agreement shall apply,  mutatis mutandis,  to any
shares or securities of any nature into which the Preference Rights of Mentor or
the  common  shares  of  Holdings  or any of them may be  converted,  exchanged,
reclassified, redivided, redesignated, subdivided or consolidated, to any shares
or  securities  of any nature  that are  received  by a  Shareholder  as a stock
dividend or  distribution  payable in shares,  securities,  warrants,  rights or
options of any nature of Mentor or Holdings  or any of the above  received on an
amalgamation, arrangement, consolidation or merger, statutory or otherwise.

<PAGE>

                                   ARTICLE II

            DIRECTORS, OFFICERS AND ONGOING AFFAIRS OF THE COMPANIES

 2.1     Agreement to Act

         Each of the Shareholders, covenant and agree to execute and deliver, or
cause to be executed and delivered,  all such  instruments and other  documents,
and to exercise or cause to be exercised  their influence and any and all voting
rights attaching to the Shares held by each of them, respectively,  from time to
time and to do or cause to be done all such  other acts and things in order that
all provisions of this Agreement,  shall be fully and  effectively  carried out,
implemented and given effect to in accordance with the terms hereof,  including,
without limitation, consenting to, approving, or other wise giving effect to all
such changes to the articles, by-laws, resolutions and other documents governing
the  Companies as may be necessary or desirable to  accurately  reflect and give
effect to the provisions of this Agreement.

 2.2     Special Approvals

         In  addition  to any other  approvals  that may be  required  at law or
pursuant to the articles,  bylaws or resolutions  of Mentor or Holdings,  unless
otherwise  expressly  agreed in writing by all  shareholders,  neither Mentor or
Holdings  shall take any of the  following  actions  without  the prior  written
consent of all shareholders hereto:

         (a) the  issuance of any shares in the capital of Mentor or Holdings or
any securities, warrants, options, or rights convertible into, exchangeable for,
or  carrying  the right to  subscribe  for,  shares in the  capital of Mentor or
Holdings;

         (b) the  redemption or purchase for  cancellation  of any shares in the
capital of Mentor or Holdings,  other than any purchase of Shares in  accordance
with this Agreement;

         (c) the transfer by Mentor or Holdings of any right,  title or interest
it may now or  hereafter  have in or to any  shares in the  capital of any other
company;

         (d)  the   conversion,   exchange,   reclassification,   redesignation,
subdivision, consolidation or other change of or to any shares in the capital of
Mentor or Holdings;

         (e)   the   amalgamation,   continuance,   merger,   consolidation   or
reorganization  of Mentor or Holdings,  or the approval or effecting of any plan
of arrangement, in each case, whether statutory or otherwise;

         (f) in the case of Holdings,  the acquisition by Holdings in any manner
of any assets other

<PAGE>

than its  Mentor  Preference  Rights or  converted  shares or the  incurring  by
Holdings of any  liabilities,  whether or not contingent or of any other nature,
other  than any  liabilities  for taxes or  governmental  charges  or for legal,
accounting or other  professional  services that may be incurred in the ordinary
course of holding the Mentor Preference Rights or converted shares;

         (g) the winding-up dissolution of Holdings or Mentor;

         (h)  the  entering  into by  Mentor  or  Holdings  of any  contract  or
transaction,  directly or indirectly, with a Related Party of any Shareholder or
a  Related  Party of any  person  who  controls,  directly  or  indirectly,  any
Shareholder;

         (i) the amendment of Messrs. Rodgers,  Austin,  Pritchard or Figueroa's
Employment Contract;

         U) except as otherwise provided in the Agreement and except in the case
of  termination  for just cause,  the  termination  of the employment of Messrs.
Rodgers, Austin, Pritchard or Figueroa;

         (k) any amendment to the articles or by-laws of Mentor or Holdings.

 2.3     Board of Directors

         As soon  as  possible  after  the  execution  of  this  Agreement,  the
Shareholders shall elect Rodgers and Austin as Directors of Mentor and Holdings.

2.4 Officers

         Until changed by vote of the Board of Directors, the officers of Mentor
shall be:

          NAME                      OFFICE OR OFFICES TO BE HELD
          ----                      ----------------------------
 James N. Rodgers                   Chief Executive Officer and President
 Edwin W. Austin                    Chief Operating & Chief Financial Officer
 John J. Pritchard                  Senior Vice President Products and Services
 Jason R. Figueroa                  Vice President Information Technology

2.5 Agreement Binds Mentor and Holdings

         Mentor and Holdings,  by their execution hereof,  acknowledge that they
have actual notice of the terms of this  Agreement,  consents  hereto and hereby
covenant with each of the Shareholders

<PAGE>

that they will at all times during the term hereof:

                  (a) give or cause to be given such  notices,  execute or cause
         to be executed such deeds,  transfers and documents as may from time to
         time be  necessary  or  conducive  to the carrying out of the terms and
         intent hereof;

                  (b) do or cause to b done all such acts, matters and things as
         may from time to time be  necessary or conducive to the carrying out of
         the terms and intent hereof; and

                  (c) take no action that would  constitute a  contravention  of
         any of the terms and provisions thereof

2.6 Employment Contracts

         Messrs.  Rodgers,  Austin,  Pritchard and Figueroa Employment Contracts
are  attached  as Schedule A and contain  the  following  terms and  conditions,
hereby agreed to by Mentor:

         NAME                   ANNUAL REMUNERATION    DEFERRED AMOUNT TO YEAR 2
         ----                   -------------------    -------------------------
         Rodgers                U.S. $250,000                      U.S. $75,000
         Austin                 U.S. $180,000                      U.S. $60,000
         Pritchard              U.S. $120,000                      U.S. $25,000
         Figueroa               U.S. $100,000                      U.S. $15,000

         Deferred salaries vest when Mentor retains earnings of U.S. $750,000 in
one quarter and are then payable in equal  monthly  amounts over the ensuing six
month period.

         Benefits are in a package  valued at a minimum often per cent of salary
and a maximum of fifteen per cent of salary.  Fully paid  vacation of four weeks
per annum for each of Rodgers, Austin, Pritchard and Figueroa.

         Automobile  allowance  available  when  Mentor is earning a profit of a
minimum of U.S. $750,000 in any one quarter. Lease allowance will be as follows:

                  NAME                                        ALLOWANCE
                  ----                                        ---------
                RODGERS                                     U.S. $450 per month
                Austin                                      U.S. $375 per month

<PAGE>

                Pritchard                                   U.S. $300 per month
                Figueroa                                    U.S. $300 per month

         A Project Completion Bonus of US $125,000 for each of Rodgers,  Austin,
Pritchard and Figueroa is available and payable on completion  and acceptance of
the Learning  Management  System by the Chief Executive Officer of Mentor and by
outside  clients and  conditional  upon receipt of a minimum of U.S.  $1,500,000
from licences.

         Each Officer will be granted stock  options of 250,000  options to each
with a strike  price of U.S.  $2  exercisable  for a period of five  years  upon
payment of the project completion bonus.

         Notice  period shall be, other than for cause,  six months from month 7
to 12 and 12 months from month 13 and 18 months from month 25.  Minimum  term of
contract is one year.

 2.7     Vend Agreement

         The vend  agreements  attached as Schedule B-I and B-2  enunciate  that
Learning  Management  Corporation and Figueroa shall assign to Mentor all rights
and ownership to a web enabled Learning Management System,  created by Pritchard
and Figueroa,  including  source code,  schematics,  functional  specifications,
prototype,   copyright,   patent   rights  and  any  rights  TO   AUTHORSHIP  IN
CONSIDERATION OF THEIR 25% undiluted ownership each in Holdings.

         Pursuant to this  agreement  the interest of Pritchard  and Figueroa in
Holdings shall not vest until all  deliverables are presented and accepted after
successful  third  party  adjudication  as follows:  Functional  Specifications,
Functional  Prototype,  Proof of Concept,  Detailed  Design,  Development,  User
Acceptance,  Testing,  Implementation plus full User and Technical Documentation
and Source Code.

         Pursuant  to this  agreement  the  interest  of Rodgers and Austin vest
pursuant  to past  services  in  creating  Mentor On Call,  Inc.  and its public
market, price per share and financing abilities.

 2.8     Assets of Holdings

         The sole assets of Holdings  shall be the nine  million,  three hundred
and fifty thousand restricted shares of Mentor.

         The assets shall be allocated  equally to each  shareholder of Holdings
when fully vested pursuant to article 2.7.

<PAGE>
                                   ARTICLE 111

                            RESTRICTIONS ON TRANSFER

 3.1     Restrictions on Transfer

         Except as specifically provided in this Agreement, no Shareholder shall
transfer  any of its right,  title or  interest  in or to any shares of Holdings
owned of record or beneficially by him without the express prior written consent
of all Shareholders first being obtained.

 3.2     Transfers to Eligible Transferees

         Notwithstanding  the  provisions of section 3.1 a Holdings  shareholder
may at any time or from time to time  transfer all of its Holdings  shares to an
Eligible  Transferee of such shareholder  provided that, at or prior to the time
of such transfer:

         (a) such Eligible Transferee shall agree with the other parties hereto,
by an  agreement  in writing  in form and  substance  satisfactory  to the other
shareholders,  acting  reasonably,  to be bound by the  terms  hereof as if such
Eligible  Transferee  has entered into this  Agreement in the place and stead of
the transferring shareholder and to remain an Eligible Transferee of the selling
shareholder as long as such Eligible  Transferee is the registered or beneficial
owner of any Holding shares; and

         (b) the  other  shareholders  receive  evidence  satisfactory  to them,
acting reasonably,  that such Eligible  Transferee is an Eligible  Transferee of
the selling shareholder and that the agreement referred to in subsection 3.2 (a)
above is a legal, valid and binding obligation of the Eligible Transferee.

         The transferring  shareholder  shall at all times after the transfer of
Holdings shares to the Eligible  Transferee be jointly and severally liable with
such Eligible Transferee for the observance and performance of the covenants and
obligations of the Eligible Transferee under this Agreement, and shall cause the
Eligible  Transferee  to  remain  an  Eligible  Transferee  of the  transferring
shareholder  so long as the Eligible  Transferee  shall have any  registered  or
beneficial  interest in any  Holdings  shares and the  transferring  shareholder
shall  indemnify the other parties  hereto  against any loss,  damage or expense
incurred as a result of the failure by the  Eligible  Transferee  to comply with
the provisions of this Agreement.

 3.3     Legend

         All certificates of Holdings shall bear the following legend:

         "The  shares  represented  by  this  certificate  are  subject  to  the
provisions  of a  unanimous  shareholder  agreement  MADE AS OF THE  18TH day of
January, 2000 which contains restrictions on the right to transfer, pledge, vote
and otherwise deal with such shares, a copy of which agreement is

<PAGE>

available  for  inspection  from the  Secretary of the  Company.  Notice of such
restrictions and the other provisions of such agreement is hereby given."

 3.4     Companies to Enforce

         None of the  Companies  shall accept for  registration  in its relevant
books  of  record  any  transfer  of  shares  not  made in  accordance  with the
provisions of this Agreement.

 3.5     Certain Transfers Ineffective

         Any transfer of shares  attempted  to be made other than in  accordance
with the provisions of this agreement shall be void and of no effect.

 3.6     Pledge of Shares

         A Holdings  shareholder  may pledge the Holdings shares owned by him to
secure  financing to be used to exercise a right under this Agreement to acquire
all of the Holdings shares owned by another shareholder,  so long as such pledge
takes effect  immediately prior to, and conditional  upon, or  contemporaneously
with, the consummation of such acquisition.

                                   ARTICLE IV

                             RIGHTS OF FIRST REFUSAL

 4.1     Delivery of Sale Notice

         In the event that any Holdings  shareholder (the "Offeror")  desires to
transfer all but not less than all the Holdings shares owned by him, the Offeror
shall  first  deliver  a notice  in  writing  (a  "Sale  Notice")  to the  other
shareholders  (the  "Offerees")  whereby  the  Offeror  offers  to sell all such
Holdings shares (the "Offered  Shares") to the Offerees for the respective price
per Holdings share,  payable in cash on closing,  set out in the Sale Notice and
on and subject to the other terms and  conditions  therein set out. The Offerees
shall have the right,  exercisable by giving notice (an "Acceptance  Notice") to
the Offeror within fifteen Business Days after its receipt of a Sale Notice (the
"Acceptance  Period")  to  purchase  all,  but not less than all, of the Offered
Shares  offered to it in  accordance  with the Sale Terms.  In the event that no
Acceptance Notice is received from an Offeree within the Acceptance  Period, the
offer to such Offerees shall be deemed to have been refused.

 4.2     Sales Notices Irrevocable

         The delivery by an Offeror of a Sales Notice shall be irrevocable  and,
upon delivery by an Offeree of an Acceptance  Notice, the Offeror shall be bound
to sell, and the Offeree shall be bound to purchase, the relevant Offered Shares
in accordance with the Sale Terms.

<PAGE>

 4.3     Sales to Third Parties

         If,  following the  completion  of the procedure  stipulated in section
4.1, the Offered Shares remain  unaccepted by the Offeree,  the Offeror may sell
the Offered  Shares to any person (a "Third Party") at a price not less than the
price set forth in the Sale Notice and on terms no more  favourable to the Third
Party than the Sale Terms. If no such sale is completed by the Offeror within 90
days  following  the  expiration  of the 15 Business  Day period  referred to in
section 4.1,  the Offeror  shall be required,  before  transferring  any Holding
shares,  again to offer such  shares in the manner  provided  in section 4.1 and
such process shall be repeated so often as any party to this  Agreement  desires
to transfer any Holdings shares.

 4.4     Tag-Along Rights

         In the event that an Offeror  proposes to sell the Offered  Shares to a
Third Party pursuant to section 4.3, the Offeror shall, within 60 days following
the expiry of the 15  Business  Day Period  referred  to in  section  4.1,  give
written notice (the  "Tag-Along  Notice") of the identity of the Third Party and
the price and other material terms of the transaction  which shall be consistent
with the  requirements  of section 4.3, to the Offeree (a  "Declining  Offeree")
that elected not to exercise  its right to purchase  such  Offered  Shares.  The
Declining  Offeree may, not later than five  Business  Days after receipt of the
Tag-Along Notice, deliver the Offeror a notice in writing invoking the provision
of this  section 4.4 (a  "Tag-Along  Demand").  The  delivery  by the  Declining
Offeree of a Tag-Along  Demand  shall be  irrevocable  and shall bind  Declining
Offeree to sell all but not less than all of the Holdings  shares (the  "Tagging
Shares") owned by the Declining  Offeree,  in accordance  with the provisions of
this section 4.4. If the Declining  Offeree delivers a Tag-Along  Demand,  then,
before  completing  any sale, the Offeror shall cause the Third Party to deliver
to the Declining Offeree a bona fide offer in writing (the "Tag-Along Offer") to
purchase from such Declining  Offeree the Tagging  Shares.  The Tag-Along  Offer
will be  binding  upon the Third  Party and shall  contain  only such  terms and
conditions as are identical to those upon which the Offeror  proposes to sell to
the Third Party the Offered  Share  pursuant to section 4.3,  provided  that the
offer price per Holdings share, which shall be specified in the Tag Along Offer,
shall be the same consideration as, or the cash equivalent of; the consideration
per Holding  share at which the Offeror  proposes to sell to the Third Party the
Offered  Shares  pursuant to section  4.3.  The closing  date and other  closing
arrangements for the purchase and sale transaction between the Declining Offeree
and the Third Party shall be specified in the  Tag-Along  Offer and shall be the
same,  mutatis  mutandis,  as those  specified  between  the Third Party and the
Offeror.

 4.5     Drag-Along Rights

         In the event that an Offeror  proposes to sell the Offered  Shares to a
Third  Party  pursuant  to section  4.3,  the  Offeror  may,  by written  notice
delivered  within 60 days  following  the expiry of the 15  Business  Day period
referred  to  in  section  4.1  to  the  Declining  Offeree,  accompanied  by an
irrevocable offer (the "Drag-Along Offer") from the Third Party to the Declining
Offeree  to  purchase,  for a  consideration  that is the same  as,  or the cash
equivalent of; the consideration per

<PAGE>

Holdings share at which the Offeror  proposes to sell its Holdings  shares owned
by such Declining Offeree (the "Dragged Shares") requiring the Declining Offeree
to sell to the Third Party all such Dragged Shares at the price specified in the
Drag-Along Offer. The delivery by the Offeror of an irrevocable Drag-Along Offer
shall bind the Declining  Offeree to sell the Dragged Shares.  The date on which
the sale is to close  and the other  closing  arrangements  (which  shall be the
same,  mutatis  mutandis,  as those for the  purchase and sale between the Third
Party and the Offeror) shall be as specified in the Drag-Along Offer.  Except as
specifically  provided for above,  the Drag-Along  Offer shall contain only such
terms and  conditions,  if any, as are identical to those  pursuant to whiche th
Offeror proposes to sell to the Third Party the offered Shares.

                                    ARTICLE V

                         SHOT GUN BUY-SELL ARRANGEMENTS

 5.1     Delivery of Initiating Notice

         Any  Holdings  shareholder  may at any time give notice in writing (the
"Initiating  Notice") to the other Holdings  shareholders (the "Notified Party")
specifying  a price per  Holdings  share (the  "Designated  Price") at which the
Initiating Party would be willing to either:

         (a) sell to the  Notified  Party all but not less than all the Holdings
shares beneficially owned at the time by the Initiating Party; or

         (b) purchase all but not less than all the Holdings shares beneficially
owned at that time by the Notified Party.

 5.2     Election of Notified Party

         Within 20  Business  Days  after  receipt by the  Notified  Party of an
Initiating  Notice,   such  Notified  Party  shall,  by  notice  in  writing  (a
"Responding Notice") to the Initiating Party, elect to either:

         (a) sell to the Initiating  Party at the  Designated  Price all but not
less  than  all the  Holdings  shares  beneficially  owned  at that  time by the
Notified Party; or

         (b) purchase from the Initiating Party, at the Designated Price, all bu
not less than all the  Holdings  shares  beneficially  owned at that time by the
Initiating Party.

 5.3     Notices Binding

         IF A NOTIFIED  PARTY  ELECTS AS DESCRIBED  IN  SUBSECTION  5.2 (A), THE
INITIATING PARTY SHALL thereupon be conclusively deemed to have made an offer to
purchase all the Holdings shares

<PAGE>

beneficially  owned at that time by the Notified party at the Designated  Price,
and the Notified party shall be conclusively deemed to have accepted such offer.
If a Notified Party does not deliver a Responding Notice within 20 Business Days
after delivery of the Initiating  Notice,  the Notified Party shall be deemed to
have  elected  to sell to the  Initiating  Party  all but not less  than all the
Holdings  shares  beneficially  owned at that time by the Notified  Party at the
Designated Price, and the Initiating party and the Notified Party shall be bound
by the agreement  resulting from such DEEMED ELECTION.  IF NOTIFIED PARTY ELECTS
AS  DESCRIBED IN  SUBSECTION  5.3 (b),  the  Notified  Party shall  thereupon be
conclusively  deemed to have made an offer to purchase all the  Holdings  shares
beneficially owned at that time by the Initiating Party at the Designated Price,
and the  Initiating  Party shall be  conclusively  deemed to have  accepted such
offer.

 5.4     Participation in Subsequent Transactions

         A party (a "Selling  Shareholder")  whose shares ("Subject Shares") are
acquired by another party hereto (a  "Purchasing  Shareholder")  pursuant to the
rights conferred by this Article V shall, in the event of a subsequent  transfer
(a  "Subsequent  Transfer")  to an  arm's  length  third  party  (a  "Subsequent
Transferee")  by  the  Purchasing  Shareholder  of  the  Subject  Shares  in the
circumstances  described  below,  be  entitled  to a portion  of the  difference
between the price paid by the Purchasing  Shareholder to the Selling Shareholder
for the Subject Shares and the proceeds  received by the Purchasing  shareholder
from the Subsequent  Transferee on the Subsequent  Transfer,  in accordance with
the following:

         (a) if an agreement  (whether oral or in writing) between,  inter alia,
the Purchasing  Shareholder and the Subsequent  Transferee (or any person acting
on behalf of or for the benefit of the Subsequent  Transferee) providing for the
Subsequent  Transfer is entered into prior to or within two months following the
closing  of  the  purchase  by  the  purchasing  Shareholder  from  the  Selling
Shareholder of the Subject Shares, seventy per cent;

         (b) Two to four months, sixty per cent;

         (c) Four to six months; fifty per cent.

                                   ARTICLE VI

              CALL RIGHTS ARISING ON DEATH OR PERMANENT INCAPACITY

 6.1     Death or Permanent Incapacity

         In the event of the death or Permanent Incapacity of a shareholder, the
other shareholders  shall have the right but not the obligation,  exercisable at
any time  during  the  period  of six  months  following  the date on which  the
shareholder dies or suffers Permanent  Incapacity,  to purchase all the Holdings
shares owned,  directly or  indirectly,  by that  shareholder or over which that
shareholder

<PAGE>

exercises control or direction, by the delivery of notice to that shareholder or
to his estate  within a six month  period  from such  occurence,  for a purchase
price equal to the fair market value as  determined by an  independent  valuator
agreeable to all parties whose determination shall be binding.

 6.2     Presumption of Death

         In the event that a  shareholder  becomes  missing  for a period of six
months,  that  shareholder  shall  be  conclusively  deemed  to be dead  for the
purposes of this Agreement.

 6.3     Appointment of Personal Represe~itatives

         If a  shareholder  should  die  and no  executor  or  administrator  is
appointed  for the estate of that  shareholder  within 90 days after the date of
death then Holdings shall be considered a creditor of the estate of the deceased
shareholder  with all of the rights  conferred  upon a creditor of a decedent by
the  place  of his  domicile,  inchiding  the  right to  cause  an  executor  or
administrator to be appointed.

 6.4     Life Insurance

         Holdings  shall  take  out  Life  Insurance  on each  shareholder  with
proceeds payable to the Estate of a Deceased shareholder where a purchase is not
elected pursuant to section 6.1 above. The face value of the policy shall be set
in an amount deemed appropriate by the shareholders, reviewed annually. Policies
attached as Schedule D hereto. If election 6.1 utilized, proceeds as key-man.

                                   ARTICLE VII

                          DEPOSIT OF SHARE CERTIFICATES

 7.1     Shares to be Deposited into Escro'w

         All share certificates of Holdings and common shares of Mentor shall be
delivered to an Escrow  Holder  acceptable  to all  sharehol~Jers  and appointed
pursuant to an Escrow  Agreement  attached  hereto as  Schedule C whereby  sai~d
Escrow Holder releases  securities  only on the basis of this  Agreement,  or on
sale of the common  shares of Mentor,  when  directed  by all the  shareholders,
releases funds on a pro rata basis to the shareholders of Holdings.

                                  ARTICLE VIFI

                                  MISCELLANEOUS

 8.1     Unanimous Shareholder Agreement

<PAGE>

         Each of the parties hereby  acknowledges and agrees that this Agreement
is intended to operate and be  construed  as a unanimous  shareholder  agreement
within the meaning of the Ontario Business Corporations Act.

 8.2     Acknowledgment by Companies

         Each of the Companies by its execution hereof  acknowledges that it has
actual  notice of the terms of this  Agreement,  consents to this  Agreement and
covenant  with each of the other  parties  that it will at all times  during the
continuance of this Agreement have or cause to be given such notices, execute or
cause to be executed  such deeds,  transfers  and documents and cause to be done
all such  acts,  matters  and things as may from time to times be  necessary  or
conducive to the canying out of the terms and intent of this Agreement.

 8.3     Notices

         (Put in full addresses,  facsimiles,  telephone numbers, E-Mails of all
parties)

 8.4     Entire Agreement

         This Agreement and the other  documents  herein  referred to constitute
the entire agreement between the parties pertaining to the subject matter hereof
and  supersede  all prior  agreements  between or among the parties  hereto with
respect to their respective  rights and obligations in respect of the shares and
management and operation of Holdings and Mentor.

 8.5     Accounting Terms

         Unless  otherwise  defined  or  the  context  otherwise  requires,  all
accounting  and  financial  terms used in this  AGREEMENT  SHALL BE CONSTRUED IN
ACCORDANCE WITH CANADIAN GENERALLY ACCEPTED ACCOUNTING principles.

<PAGE>

 8.6     Governing Law

         This  Agreement  shall be construed in accordance  with the laws of the
Province  of Ontario and the laws of Canada  applicable  therein and each of the
parties hereby  irrevocably  attorns to the  non-exclusive  jurisdiction  of the
court os such province.

 8.7     Rules of Interpretation

         Words  importing the singular  number shall include the plural and vice
versa and words  importing  the use of any  gender  shall  include  all  gender.
Headings used in this Agreement are for  convenience of reference only and shall
not constitute a part of this Agreement for any other purpose including, without
limitation,  its interpretation.  Expressions such as "hereof',  "hereunder" and
"hereby" shall be construed as referring to the entire Agreement and not only to
the particular Article,  section,  subsection or clause in which they appear. In
determining  beneficial ownership by a person such person shall be considered as
having a beneficial  ownership interest in the assets of any company controlled,
directly or indirectly, by such person.

 8.8     Successor and Assigns

         Except as otherwise provided herein,  neither this Agreement nor any of
the rights of any Holdings  shareholder  hereunder  may be assigned  without the
prior written consent of the other Holdings shareholder. Except as may otherwise
be provided  herein,  all of the terms and provisions of this agreement shall be
binding  upon and shall  enure to the  benefit of the  parties  hereto and their
respective  heirs,  executors,  administrator,  other personal  representatives,
successors and permitted assigns.

 8.8     Severability

         The  invalidity  or  unenforceability  of any  provision or part of any
provision of this Agreement shall not affect the validity or  enforceability  of
any other  provision  or part  thereof;  and any such  invalid or  unenforceable
provision  or part  thereof  shall  be  deemed  to be  separate,  severable  and
distinct,  and no provision or part thereof shall be deemed  dependent  upon any
other provision or part thereof unless expressly provided for herein.

 8.9     Counterparts

         This Agreement may be executed in any number of  counterparts,  each of
which when so executed  shall be deemed to be an original  and all of which when
taken together shall constitute on and the same agreement.  Facsimile  signature
are valid and binding.

<PAGE>

IN WITNESS  WHEREOF THIS  AGREEMENT HAS BEEN EXECUTED BY THE PARTIES ON THE 18TH
DAY OF JANUARY, 2000.

SIGNED, SEALED AND DELIVERED

BY:

James N. Rodgers                                  EDWIN W. AUSTIN

Janh J. Pritchard                                 JASON R. FIGUEROA

THE CORPORATE SEAL OF MENTOR ON CALL, INC.
was attached and signed by a duly authorized officer of same:

TILE CORPORATE SEAL OF MENTOR ON CALL HOLDINGS, INC.
was attached and signed by a duly authorized officer of same:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]