Document:

EXHIBIT 10.15

                            SHARE PURCHASE AGREEMENT

      THIS SHARE PURCHASE  AGREEMENT (this agreement together with all schedules
thereto:  the "AGREEMENT") made as of the 15th day of July, 2004 (the "EFFECTIVE
DATE"),  by and among  Technoprises  Ltd., an Israeli public company of 12 Raoul
Wallenberg,  Tel-Aviv (Reg. No. 520036708)  ("TECHNOPRISES"),  EVR Entertainment
Applications of Virtual Reality (94) Ltd.  ("EVR"),  an Israeli private company,
of 12 Raoul Wallenberg,  Tel-Aviv (Reg. No. 511915944),  Araneo Ltd., an Israeli
private company of Hertzel 121,  Tel-Aviv (Reg. No. 512774332)  ("ARANEO"),  and
all  of  the   shareholders   of  Araneo   listed  in  SCHEDULE  1  hereto  (the
"SHAREHOLDERS" and together with Araneo, the "SELLERS" and each a "SELLER").

                              W I T N E S S E T H:

      WHEREAS,  ARANEO is  engaged in the  development,  design and sale of core
technologies in the IP convergent media communication field and the Shareholders
are the owners of all of the  outstanding  share  capital of ARANEO,  on a fully
diluted basis;

      WHEREAS,  TECHNOPRISES  is a public  company  traded in the United States,
which is the owner of several cross-media subsidiaries and technologies;

      WHEREAS,  EVR is a wholly  owned  subsidiary  of  TECHNOPRISES  engaged in
design and marketing of Broadband access systems ;

      WHEREAS,  TECHNOPRISES  wishes to purchase from the  Shareholders  and the
Shareholders wish to sell to TECHNOPRISES, through EVR, all of the share capital
of ARANEO,  on a fully diluted basis, for the consideration and on the terms set
forth herein;

      WHEREAS,  TECHNOPRISES  and the Sellers believe it is in the best of their
interests that the transactions contemplated hereby be consummated;

      WHEREAS,   TECHNOPRISES   and  the   Sellers   desire   to  make   certain
representations,  warranties,  covenants and other agreements in connection with
the transaction contemplated hereby;

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

1. SALE AND TRANSFER OF SHARES.  Subject to the terms and  conditions  set forth
herein  and  against  receipt  of  the  consideration  set  forth  herein,   the
Shareholders shall sell,  transfer,  assign,  convey and deliver to EVR, and EVR
shall  purchase  and acquire  from the  Shareholders,  on the  Closing  Date (as
hereinafter defined),  the number of Ordinary Shares, 0.01 NIS par value each of
ARANEO (the "ARANEO  SHARES") set forth opposite the name of such Shareholder in
SCHEDULE 1 hereto under the heading "ARANEO Shares" comprising all of the shares
of ARANEO owned by such Shareholder  immediately prior to the Closing,  free and
clear of all liens, charges,  pledges,  claims,  security interests,  mortgages,
adverse  claims of  ownership  or use and/or any other  third party right of any
kind, restrictions on transfer, defect of title or other encumbrance of any kind
or  character  ("LIENS").  The Araneo  Shares will  represent  100% (one hundred
percent)  of  ARANEO's   issued  and  outstanding   share  capital,   all  on  a
fully-diluted basis (the "SHARE CAPITAL") as of the Closing Date

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2.    CONSIDERATION.

Subject to the terms and conditions set forth herein,  in consideration  for the
sale, assignment,  conveyance,  transfer and delivery of the ARANEO Shares being
sold,   conveyed,   transferred,   assigned  and  delivered  to  EVR  hereunder,
TECHNOPRISES will issue to the Shareholders at the Closing,  an aggregate number
of Ordinary Shares non par value each of TECHNOPRISES  valued at $2,000,000 (two
million US Dollars) (the "ISSUED SHARES"), determined based on a price per share
of US$0.25 of each  Ordinary  Share of  TECHNOPRISES.  The Issued Shares will be
issued to the Shareholders,  as shares fully paid up and free of any Liens. Each
Shareholder  shall  receive  such  amount of  Ordinary  Shares  of  TECHNOPRISES
(representing  such  percentage of the Issued Shares) as listed besides the name
of each  Shareholder in SCHEDULE 1 hereto,  under the heading  "Issued  Shares".
Notwithstanding  the above,  at the Closing  TECHNOPRISES  will deduct 3% of the
Issued Shares issuable to each respective  Shareholder  hereunder and will issue
such shares to the Finders as the ARANEO Commission  Shares,  all as defined and
set forth in Section 9 below.

3.    CLOSING.

3.1 The  Closing  shall  take  place,  subject  to,  and no later  than five (5)
business days after the  satisfaction  or waiver of all the conditions set forth
in SECTION 7 hereunder, and in any case no later than 30 days from the Effective
Date,  at the offices of Fischer  Behar Chen & Co. 3 Daniel  Frisch Street , Tel
Aviv,  or at such other place and/or date as the parties  hereto shall  mutually
agree.  In case a condition  to Closing  will not be  satisfied  or waived,  the
Closing shall be defer  automatically  by 15 days. (the actual date on which the
Closing shall occur being referred to herein as the "CLOSING DATE").

3.2   DELIVERY OF ARANEO SHARES AND ISSUANCE OF THE ISSUED SHARES.

3.2.1.  Subject to the terms and  conditions  set forth herein,  at the Closing,
ARANEO and the  Shareholders  shall deliver to EVR a  certificate  registered in
EVR's  name  representing  all the  ARANEO  Shares  free and clear of any Liens,
accompanied by share transfer deeds,  in a form  satisfactory to EVR duly signed
by each Shareholder.

3.2.2.  Subject to the terms and conditions set forth herein,  in  consideration
for the sale, assignment, conveyance, transfer and delivery of the ARANEO Shares
being  sold,  conveyed,  transferred,  assigned  and  delivered  hereunder:  (i)
TECHNOPRISES  will issue to the  Shareholders at the Closing,  the Issued Shares
minus the ARANEO  Commission  Shares (as defined in Section 9 below),  as shares
fully paid and  registered  in the name of the  Shareholders.  Each  Shareholder
shall receive such amount of Ordinary Shares of TECHNOPRISES  (and  representing
such percentage of the Issued Shares) as listed by the name of each  Shareholder
in  SCHEDULE  1, under the  heading  "Issued  Shares"  (from which the number of
ARANEO  Commission  Shares and the Escrow  Shares will be deducted on a pro-rata
basis);  (ii)  TECHNOPRISES  will issue the Esrow Shares to the Escrow Agent, on
account  of the  Issued  Shares,  as set  forth in  Section  11.7  below;  (iii)
TECHNOPRISES  will issue the ARANEO  Commission  Shares to the Finders (in equal
portions) on account of the Issued Shares, as set forth in Section 9 below.

3.2.3. TECHNOPRISES will issue the TECHNOPRISES Commission Shares to the Finders
(in equal portions), as defined and set forth in Section 9 below.

3.2.4.  The  Sellers,  TECHNOPRISES  ARANEO and the  Escrow  Agent will sign and
execute the Escrow Agreement (as defined in Sections 11.7 and 11.8 below).

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4.  REPRESENTATIONS AND WARRANTIES OF TECHNOPRISES.  TECHNOPRISES and EVR hereby
jointly and severally  represent and warrant to the Sellers and acknowledge that
the Sellers are  entering  into this  Agreement  in reliance  thereon,  that(the
"TECHNOPRISES DISCLOSURE SCHEDULE"):

4.1  ORGANIZATION.  Each of TECHNOPRISES and EVR is a corporation duly organized
and validly existing under the laws of the State of Israel and has the requisite
corporate power and authority to own or lease all of its assets, to carry on its
business as now conducted and to enter into this Agreement and to consummate the
transactions  contemplated hereby and thereby.  Each of TECHNOPRISES and EVR has
delivered to the Sellers true, complete and correct copies of its Certificate of
Incorporation  and  Articles of  Association  (the  "TECHNOPRISES  INCORPORATION
DOCUMENTS"  and "EVR  INCORPORATION  DOCUMENTS"  respectively),  each as amended
through the date hereof. TECHNOPRISES has not taken any action or failed to take
any action, which action or failure would preclude or prevent it from conducting
its business after the Closing in the manner heretofore conducted.  TECHNOPRISES
has all franchises,  permits,  licenses, and any similar authority necessary for
the conduct of its business as now being conducted and as currently  proposed to
be  conducted  by it, the lack of which  could have a Material  Adverse  Effect.
TECHNOPRISES is not in default under any of such franchises,  permits, licenses,
or other similar authority.

4.2  AUTHORITY.  NO  CONFLICTS.  All  corporate  action  on the  part of each of
TECHNOPRISES and EVR necessary for the authorization,  execution,  delivery, and
performance  of all the of  TECHNOPRISES's  and  EVR's  obligations  under  this
Agreement  has  been  taken  (or  will be  taken  prior  to the  Closing).  This
Agreement,  when executed and delivered by or on behalf of TECHNOPRISES and EVR,
shall  constitute the valid and legally binding  obligation of TECHNOPRISES  and
EVR,  legally  enforceable  against it in  accordance  with its  terms.  Prosper
Abitbol  was  given  the  authority  to sign this  agreement  and all  ancillary
documents required for its implementation, on TECHNOPRISES and EVR's behalf, and
their  signature  on this  Agreement is binding  upon  TECHNOPRISES  and EVR. No
consent,  approval,  order,  license,  permit, action by, or authorization of or
designation,  declaration,  or filing with any governmental entity, or any other
third party on the part of TECHNOPRISES or EVR is required that has not been, or
will not have been,  obtained  by  TECHNOPRISES  and EVR prior to the Closing in
connection with the valid execution, delivery and performance of this Agreement.
The execution and delivery of this Agreement do not, and the consummation of the
transactions  contemplated  by this Agreement and compliance with the provisions
of this  Agreement  will not,  conflict  with or result in any  violation  of or
default  under  (i)  the  TECHNOPRISES   Incorporation   Documents  or  the  EVR
Incorporation  Documents,  (ii)  any  loan  or  credit  agreement,  note,  bond,
mortgage, indenture, lease or other agreement,  instrument,  permit, concession,
franchise  or  license  applicable  to  TECHNOPRISES  or its assets or (iii) any
judgment,  writ, order,  decree,  statute,  law,  ordinance,  rule or regulation
applicable to it.

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4.3 CAPITALIZATION.  Immediately prior to Closing,  the authorized share capital
of TECHNOPRISES shall consist of 500,000,000 Ordinary Shares, non par value each
(the "TECHNOPRISES  SHARES") of which 133,077,010 Ordinary Shares, non par value
each,  are issued  and  outstanding.  All  outstanding  shares of  TECHNOPRISES,
including  the Issued  Shares when  issued,  are and will be,  duly  authorized,
validly  issued,  fully paid and  nonassessable  and not  subject to  preemptive
rights. The Issued Shares will be duly authorized,  validly issued,  fully paid,
nonassessable,  and free of any  preemptive  rights,  and will have the  rights,
preferences,   privileges,  and  restrictions  set  forth  in  the  TECHNOPRISES
Articles..  Except as set forth in the TECHNOPRISES  Disclosure Schedule,  there
are no options, warrants or other forms of securities convertible into shares of
TECHNOPRISES.  Except  as  contemplated  by  this  Agreement,  the  TECHNOPRISES
Disclosure Schedule and the TECHNOPRISES  Incorporation Documents,  there are no
preemptive rights,  convertible  securities,  outstanding  warrants,  options or
other rights to subscribe for,  purchase or acquire from TECHNOPRISES any shares
and there are no contracts or binding commitments providing for the issuance of,
or the granting of rights to acquire,  any shares of TECHNOPRISES or under which
TECHNOPRISES  is, or may become,  obligated to issue any of its securities.  All
issued and outstanding  share capital of TECHNOPRISES  has been duly authorized,
and is validly issued and outstanding and fully paid and  nonassessable.  At the
Closing, the Issued Shares shall be duly authorized, validly issued, fully paid,
nonassessable,  and free of any  preemptive  rights,  and will have the  rights,
preferences,   privileges,  and  restrictions  set  forth  in  the  TECHNOPRISES
Articles,  and will be free and clear of any Liens  and duly  registered  in the
name of the respective Shareholder in TECHNOPRISES 's Register of Members.

4.4 ASSETS AND  LIABILITIES.  TECHNOPRISES'  major  assets and  liabilities  are
described in the TECHNOPRISES SEC Documents (as defined below).

4.5  CONTRACTS.  TECHNOPRISES  is not a  party  to  any  material  contract  not
disclosed in the TECHNOPRISES SEC Documents (as defined below).

4.6  LITIGATION.  Except  as set forth in the  TECHNOPRISES  SEC  Documents,  no
action,  proceeding  or  governmental  inquiry  or  investigation  is pending or
threatened against TECHNOPRISES or any of its officers,  directors, or employees
(in their capacity as such), or against any of TECHNOPRISES's properties, before
any court, arbitration board or tribunal or administrative or other governmental
agency,  nor is there any  basis for the  foregoing.  To the best  knowledge  of
TECHNOPRISES  there are no actions  pending or  threatened  involving  the prior
employment  of any of  TECHNOPRISES's  employees  or  use  by  any  of  them  in
connection  with  TECHNOPRISES's  business  of  any  information,   property  or
techniques allegedly proprietary to any of their former employers.

      SEC  DOCUMENTS;  FINANCIAL  STATEMENTS.  Neither  this  Agreement  nor any
certificates  made or delivered by TECHNOPRISES in connection  herewith contains
any untrue statement.  TECHNOPRISES has delivered to the Sellers true,  complete
and correct  copies of its latest  draft of the  Registration  Statement on Form
F-1,  to be filed on July,  2004 (the "F-1  STATEMENT")  and other  forms  filed
subsequently by TECHNOPRISES  with the U.S.  Securities and Exchange  Commission
(the "SEC" and the  "TECHNOPRISES  SEC  DOCUMENTS",  respectively).  As of their
respective  dates,  the  TECHNOPRISES  SEC  Documents  complied in all  material
respects with the requirements of the United States  Securities Act of 1933 (the
"SECURITIES  ACT") or the  United  States  Exchange  Act of 1934 (the  "EXCHANGE
ACT"),  as the case may be, and the rules and regulations of the SEC promulgated
thereunder  applicable  to such  TECHNOPRISES  SEC  Documents,  and  none of the
TECHNOPRISES SEC Documents  contained any untrue statement of a material fact or
omitted to state a material fact  required to be stated  therein or necessary in
order to make the statements  therein, in light of the circumstances under which
they were made, not misleading.  Except to the extent that information contained
in any TECHNOPRISES SEC Document has been revised or superseded by a later-filed
TECHNOPRISES SEC Document filed and publicly available prior to the date of this
Agreement,  none of the TECHNOPRISES SEC Documents contains any untrue statement
of a material  fact or omits to state any  material  fact  required to be stated
therein or necessary in order to make the  statements  therein,  in light of the
circumstances  under  which  they  were  made,  not  misleading.  The  financial
statements of TECHNOPRISES  included in the TECHNOPRISES SEC Documents comply as
to form in all material respects with applicable accounting requirements and the
published  rules and  regulations  of the SEC with  respect  thereto,  have been
prepared in accordance with Israeli  generally  accepted  accounting  principles
("GAAP")  applied on a consistent  basis during the periods  involved (except as
may be  indicated  in the notes  thereto)  and fairly  present the  consolidated
financial  position of TECHNOPRISES and its consolidated  subsidiaries as of the
dates thereof and the  consolidated  results of their  operations and cash flows
for the periods then ended  (subject,  in the case of unaudited  statements,  to
normal year-end adjustments).

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<PAGE>

4.7 .FULL  DISCLOSURE.  Neither  this  Agreement  nor any  certificates  made or
delivered by TECHNOPRISES in connection  herewith  contains any untrue statement
of a  material  fact or omits to state a  material  fact  necessary  to make the
statements  herein or therein not misleading,  in view of the  circumstances  in
which they were made. To  TECHNOPRISES's  best  knowledge,  there is no material
fact or information relating to the business, prospects, condition (financial or
otherwise),  affairs,  operations,  or assets of TECHNOPRISES  that has not been
disclosed to the Sellers in writing by TECHNOPRISES.

4.8 BROKERS.  Other then as set forth in section 9 hereof, no broker,  finder or
investment  banker  is  entitled  to any  brokerage,  finder's  or other  fee or
commission in connection with the  transactions  contemplated  hereby based upon
arrangements made by or on behalf of TECHNOPRISES.

5.  REPRESENTATIONS  AND WARRANTIES OF ARANEO & THE SELLERS.  Each of Araneo and
the  Sellers  hereby,   jointly  and  severally,   represents  and  warrants  to
TECHNOPRISES, and acknowledges that TECHNOPRISES is entering into this Agreement
in reliance  thereon,  that except as  otherwise  set forth in SCHEDULE 5 hereto
(the "ARANEO DISCLOSURE SCHEDULE"), as follows:

5.1  ORGANIZATION.  ARANEO is duly organized and validly existing under the laws
of the State of Israel, and has full corporate power and authority to own, lease
and operate its  properties  and assets and to conduct its business as now being
conducted and as currently proposed to be conducted,  . ARANEO has all requisite
corporate  power and  authority to execute and deliver this  Agreement and other
agreements  contemplated  hereby or which are ancillary hereto and to consummate
the transactions contemplated hereby and thereby. The Articles of Association of
ARANEO as in effect at the Closing  are  attached  hereto as SCHEDULE  5(B) (the
"ARANEO  ARTICLES").  ARANEO  has not  taken  any  action  or failed to take any
action, which action or failure would preclude or prevent ARANEO from conducting
its business after the Closing in the manner  heretofore  conducted.  ARANEO has
all franchises,  permits,  licenses, and any similar authority necessary for the
conduct of its business as now being  conducted and as currently  proposed to be
conducted by it, the lack of which could have a Material Adverse Effect.  ARANEO
is not in default  under any of such  franchises,  permits,  licenses,  or other
similar authority.

                                       5
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5.2  CAPITALIZATION.  ARANEO's registered share capital as at the date hereof is
comprised of: 3,600,000 Ordinary Shares and 200,000 Preferred A Shares, 0.01 NIS
par value each. Prior to Closing hereunder all of ARANEO's registered  Preferred
A Shares (issued and  non-issued)  shall be converted into Ordinary  Shares,  so
that ARANEO's registered share capital shall be comprised of: 3,800,000 Ordinary
Shares, 0.01 NIS par value each. ARANEO's  capitalization  table, as of the date
of this Agreement,  on a Fully Diluted Basis, is attached as ANNEX 5.2(A) hereto
(the  "EXISTING  CAP  TABLE").  Prior to Closing  hereunder  all of the existing
options, warrants or other forms of securities convertible into shares of ARANEO
shall have been  exercised or terminated  and the issued and  outstanding  share
capital of ARANEO (on a Fully Diluted  Basis) as of the Closing Date shall be as
set  forth in the Cap  Table  attached  hereto  as  exhibit  5.2(B).  Except  as
contemplated by this Agreement and the ARANEO Articles,  there are no preemptive
rights, convertible securities, outstanding warrants, options or other rights to
subscribe  for,  purchase  or  acquire  from  ARANEO any shares and there are no
contracts or binding commitments  providing for the issuance of, or the granting
of rights to  acquire,  any  shares of ARANEO or under  which  ARANEO is, or may
become,  obligated to issue any of its  securities.  All issued and  outstanding
share  capital of ARANEO  has been duly  authorized,  and is validly  issued and
outstanding and fully paid and nonassessable.  At the Closing, the ARANEO Shares
shall be duly authorized, validly issued, fully paid, nonassessable, and free of
any preemptive rights, and will have the rights,  preferences,  privileges,  and
restrictions set forth in the ARANEO Articles, and will be free and clear of any
Liens and duly registered in the name of  TECHNOPRISES  in ARANEO's  Register of
Members.  ARANEO is not under any  obligation  to  register  for  trading on any
securities  exchange any of its currently  outstanding  securities or any of its
securities  which may hereafter be issued.  Since its  incorporation,  there has
been no declaration or payment by ARANEO of dividends, or distribution by ARANEO
of any assets of any kind to any of its  shareholders in redemption of or as the
purchase price for any of ARANEO's securities.

5.3  AUTHORIZATION;  NO CONFLICTS.  All  corporate  action on the part of ARANEO
necessary for the  authorization,  execution,  delivery,  and performance of all
ARANEO's obligations under this Agreement has been taken (or will be taken prior
to the Closing).  This  Agreement when executed and delivered by or on behalf of
ARANEO shall  constitute  the valid and legally  binding  obligations of ARANEO,
legally  enforceable  against it in accordance with its terms.  Reymond Eskenazi
and  Giacomo  Hasson were given the  authority  to sign this  Agreement  and all
ancillary  documents  required for its  implementation,  on ARANEO's behalf, and
their signature on this Agreement is binding upon ARANEO. No consent,  approval,
order,  license,   permit,  action  by,  or  authorization  of  or  designation,
declaration,  or filing  with any  governmental  entity on the part of ARANEO is
required that has not been,  or will not have been,  obtained by ARANEO prior to
the Closing in connection with the valid execution,  delivery and performance of
this  Agreement.  The execution  and delivery of this  Agreement do not, and the
consummation of the  transactions  contemplated by this Agreement and compliance
with the provisions of this  Agreement will not,  conflict with or result in any
violation of or default under (i) the ARANEO  Articles,  (ii) any loan or credit
agreement,   note,  bond,  mortgage,   indenture,   lease  or  other  agreement,
instrument, permit, concession, franchise or license applicable to ARANEO or its
assets or (iii) any judgment, writ, order, decree, statute, law, ordinance, rule
or regulation applicable to them.

5.4 DIRECTORS,  OFFICERS. The directors and officers of ARANEO are listed in the
Disclosure Schedule.

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5.5  INTELLECTUAL  PROPERTY  RIGHTS.  [Other  than as set  forth  in the  ARANEO
Disclosure Schedule],  ARANEO owns and has developed,  or has obtained the right
to use, free and clear of all Liens, claims,  restrictions,  third-party rights,
or royalties, all patents, and applications, licenses and rights with respect to
the foregoing, and all trade secrets, including know-how,  inventions,  designs,
processes,  works  of  authorship,  computer  programs  and  technical  data and
information, including without limitation, all the items set forth in the ARANEO
Disclosure  Schedule  corresponding  to  this  Section  5.5  (the  "INTELLECTUAL
PROPERTY")  used and  sufficient  for use in the conduct of its  business as now
conducted  and as  currently  proposed  to be  conducted  immediately  following
Closing hereunder without,  to the best of ARANEO's knowledge after due inquiry,
infringing  upon or violating  any right,  Lien,  or claim of others,  including
without limitation any shareholder or employee or consultant of ARANEO, and past
and  present  employees  and  employers  of any past or present  shareholder  or
employee or consultant of ARANEO.  Except as set forth in the ARANEO  Disclosure
Schedule,  ARANEO is not obligated or under any liability whatsoever to make any
payments by way of royalties,  fees or otherwise to any owner or licensee of, or
other claimant to, any patent, trademark, service mark, trade name, copyright or
other  intangible  asset,  with respect to the use thereof or in connection with
the conduct of its  business as now  conducted  or as  currently  proposed to be
conducted  immediately  following Closing  hereunder.  Each item of Intellectual
Property owned or used by ARANEO immediately prior to the Closing shall be owned
or available  for use by ARANEO on  materially  identical  terms and  conditions
immediately  subsequent  to the  Closing  hereunder.  Any and  all  Intellectual
Property of any kind,  which has been developed and is currently being developed
by any  employee of ARANEO in the  framework of his  employment  with ARANEO and
relating  to  ARANEO's  business,  is and  shall be the  property  solely of the
ARANEO.   ARANEO  has  taken   security   measures  to  protect   the   secrecy,
confidentiality and value of all the Intellectual  Property,  which measures are
reasonable and customary in the industry in which ARANEO operates. Except as set
forth  in  the  ARANEO  Disclosure  Schedule  each  of  ARANEO's  employees  and
consultants, has entered into written agreements with ARANEO assigning to ARANEO
all rights in Intellectual  Property developed in the course of their employment
or consultancy  by ARANEO and each of ARANEO's  employees and  consultants,  and
other persons who, either alone or in concert with others, developed,  invented,
discovered,  derived,  programmed or designed the Intellectual  Property, or who
has knowledge of or access to information about the Intellectual  Property have,
or will have prior to the Closing,  entered into written agreements in customary
forms with ARANEO  concerning  confidentiality.  To the best knowledge of ARANEO
and the  Sellers,  no such  agreements  have been  violated  by any  employee or
consultant,  or former  employee or consultant,  or other person.  Except as set
forth in the ARANEO  Disclosure  Schedule  neither ARANEO nor any of the Sellers
have  received  any  communications  alleging  that  ARANEO has  violated  or by
conducting  its  business  as  proposed,  would  violate,  any of  the  patents,
trademarks,  service  marks,  trade names,  copyrights or trade secrets or other
proprietary rights of any other person or entity,  nor, to the best knowledge of
ARANEO and the Sellers,  is there any basis for any such  communication.  ARANEO
Disclosure  Schedule  contains  a status  report  prepared  by  ARANEO's  patent
attorney  of all  ARANEO's  Intellectual  Property.  In  respect of each item of
Intellectual  Property  identified in such report, and without derogating of the
generality of the above  representations  in this Section:  (i) ARANEO possesses
all  rights,  title,  and  interest  in and to the  item,  free and clear of any
interest,  license,  or other  restriction;  (ii) the item is not subject to any
outstanding  injunction,  judgment,  order,  decree, or charge; (iii) no action,
suit, proceeding, hearing, investigation, charge, complaint, claim, or demand is
pending  which  challenges  the  legality,  validity,  enforceability,  use,  or
ownership of the item and ARANEO was not served with any notice  relating to the
intention of any party to commence such actions;  and (iv) ARANEO has not agreed
to  indemnify  any  person  for  or  against  any  interference,   infringement,
misappropriation, or other conflict with respect to the item.

                                       7
<PAGE>

5.6 TITLE TO ASSETS.  (i)  Except as set forth in the  Disclosure  Schedule  and
except  for  assets  of no  significant  value,  ARANEO  is the owner of all its
assets,  which  such  assets  are  listed  in  the  ARANEO  Disclosure  Schedule
corresponding  to this Section 5.6 and has good and marketable title to all such
assets  free and  clear  of any  Liens.  ARANEO  does  not own any  tangible  or
intangible  assets of a material nature other than those set forth in the ARANEO
Disclosure Schedule. (ii) Except as set forth in the ARANEO Disclosure Schedule,
the  properties and equipment of ARANEO  presently  being used in the conduct of
its business are substantially in good operating condition and repair,  ordinary
wear and tear excepted and are suitable for the purposes used. (iii) ARANEO does
not own any real  property.  (iv)  ARANEO  owns or leases  all of the assets and
properties, and is a party to all licenses and other agreements,  presently used
or  necessary  to carry on the  business or  operations  of ARANEO as  presently
conducted.  All  leasehold  interests  relating  to  real  property,  machinery,
equipment,  vehicles and other personal property are valid and in full force and
effect and  enforceable in accordance  with their terms and there does not exist
any violation, breach, or default thereof or thereunder.

5.7  ABSENCE  OF  UNDISCLOSED  LIABILITIES.  Except as set  forth in the  ARANEO
Disclosure Schedule,  to Araneo's and the Sellers' best knowledge,  there are no
material Liabilities of ARANEO, including Liabilities which may arise only after
the Closing and which result from acts,  omissions or  occurrences  of ARANEO or
its officers prior to the Closing, other than: Liabilities for express executory
obligations to be performed after the Closing (other than any express  executory
obligations  that might arise due to any default or other failure of performance
by ARANEO or its officers  prior to the  Closing).  Prior to Closing  hereunder,
ARANEO  shall  have  paid up for  all of its  outstanding  Liabilities,  so that
ARANEO's outstanding  Liabilities,  as of the Closing Date shall include ongoing
Liabilities  up to an  aggregate  amount of $25,000.  A list of the  outstanding
Liabilities  as of Closing  Date shall be  attached  at the  Closing as SCHEDULE
7.2.5  hereto.  "LIABILITY"  or  "LIABILITIES"  means  any  liabilities,  debts,
obligations  or claims  of any kind  whatsoever  whether  absolute,  accrued  or
unaccrued,  fixed or contingent,  matured or unmatured,  asserted or unasserted,
known or unknown, direct or indirect, contingent or otherwise and whether due or
to become  due,  including  without  limitation  any  foreign  or  domestic  tax
liabilities  or deferred tax  liabilities  incurred in respect of or measured by
the ARANEO's income, or any other debts,  liabilities or obligations relating to
or arising out of any act, omission, transaction, circumstance, sale of goods or
services,  state of facts or other  condition  which  occurred  or existed on or
before the date hereof, whether or not known, due or payable.

5.8 LEASE. ARANEO leases its offices under a lease agreement, as attached to the
ARANEO Disclosure Schedule.

5.9  LOANS &  GUARANTEES.  ARANEO  does not have any  outstanding  loans nor any
outstanding guarantees.

5.10 CONTRACTS. The ARANEO Disclosure Schedule contains a true and complete list
of all material  contracts and agreements to which ARANEO is a party or by which
its property and/or its Intellectual Property is bound. To the best knowledge of
ARANEO and the Sellers each of such  contracts  and  agreements is in full force
and effect, and neither ARANEO nor any other party thereto is in breach thereof.
Except as set forth in the Disclosure Schedule,  the ARANEO has no employment or
consulting  contracts,  deferred  compensation  agreements or bonus,  incentive,
profit-sharing,  or  pension  plans  currently  in  force  and  effect,  or  any
understanding with respect to any of the foregoing.  Except as set forth in this
Agreement  and/or the ARANEO  Disclosure  Schedule  neither  the  execution  and
delivery  of this  Agreement,  nor  compliance  by  ARANEO  with the  terms  and
provisions  hereof or  thereof,  will  conflict  with,  or result in a breach or
violation  of, any of the terms,  conditions  and  provisions  of: (i)  ARANEO's
Memorandum  of  Association  or  Articles  of  Association,  or other  governing
instruments of the ARANEO,  (ii) any judgment,  order,  injunction,  decree,  or
ruling of any court or governmental  authority,  domestic or foreign,  (iii) any
agreement,  contract, lease, license or commitment to which ARANEO is a party or
to which it is subject,  or (iv) applicable  law. Such  execution,  delivery and
compliance  will  not  (a)  give to  others  any  rights,  including  rights  of
termination,  cancellation or acceleration, in or with respect to any agreement,
contract  or  commitment  referred  to in  this  paragraph,  or to  any  of  the
properties of ARANEO,  or (b)  otherwise  require the consent or approval of any
person, including without limitation,  any governmental entity, which consent or
approval has not heretofore been obtained.

                                       8
<PAGE>

5.11 LITIGATION.  Except as set forth in the ARANEO  Disclosure  Schedule and to
the Seller's best knowledge,  no action,  proceeding or governmental  inquiry or
investigation  is pending or threatened  against  ARANEO or any of its officers,
directors,  or employees (in their capacity as such), or against any of ARANEO's
properties, before any court, arbitration board or tribunal or administrative or
other governmental agency, nor is there any basis for the foregoing. To the best
knowledge of ARANEO there are no actions  pending or  threatened  involving  the
prior  employment  of any of  ARANEO's  employees  or  use  by  any of  them  in
connection  with ARANEO's  business of any  information,  property or techniques
allegedly proprietary to any of their former employers.

5.12  INSURANCE.  The ARANEO  Disclosure  Schedule lists the insurance  policies
purchased by and  currently in force for the benefit of ARANEO.  To ARANEO's and
the Sellers' best knowledge, ARANEO has neither done nor suffered anything to be
done which has materially  rendered or might  materially  render any policies of
insurance  taken out by it void or voidable or which might  result in a material
increase  in  premiums;  ARANEO  has  materially  complied  with all  conditions
attached  to such  policies.  To the  best  of the  ARANEO's  and  the  Sellers'
knowledge and belief,  there are no material claims or circumstances giving rise
to a claim under any of  ARANEO's  insurance  policies.  To the best of ARANEO's
knowledge and belief,  there are no material claims or circumstances  that would
give rise to a refusal to renew the  insurance  policies  issued to ARANEOby the
insurer. 5.13 NO PUBLIC OFFER OF ARANEO SHARES. Neither ARANEO nor anyone acting
on its behalf has offered or will offer securities of ARANEO or any part thereof
or any  similar  securities  for  issuance  or sale to, or solicit  any offer to
acquire  any of the same  from,  anyone so as to make  issuance  and sale of the
Shares hereunder not exempt from the registration requirements of the Securities
Act of 1933, as amended (the  "Securities  Act"),  the Israeli  Securities  Law,
1968, or to ARANEO's best knowledge other applicable foreign securities law.

5.14 COMPLIANCE WITH LAWS. Except as set forth in the ARANEO Disclosure Schedule
ARANEO has complied and is complying with all laws,  orders,  ordinances,  rules
and  regulations  relating to its  properties,  business and the  operation  and
conduct thereof and with all provisions of its documents of incorporation.

5.15  TAXATION.  (i) Until the date  hereof,  ARANEO has duly filed all  reports
required by the  applicable  tax  authorities.  (ii) ARANEO has at all times and
within the  requisite  time  limits  promptly,  fully and  accurately  observed,
performed and complied with all  obligations or conditions  imposed on it, or to
which any deduction, allowance or relief made, claimed by or afforded to it, was
made subject under any legislation relating to taxation. (iii) All documents and
reports  submitted to the tax  authorities  were in all material  respects true,
correct,  not  misleading  and  not  omitting  any  information  required  to be
contained therein, and were submitted as required by law.

                                       9
<PAGE>

5.16 FINANCIAL STATEMENTS.  (i) The ARANEO Disclosure Schedule contains ARANEO's
audited   financial   statements  as  at  December  31,  2003  (the   "FINANCIAL
STATEMENTS").   The  Financial  Statements  were  prepared  in  compliance  with
generally  accepted  accounting  principles,   and  were  not  affected  by  any
extraordinary, exceptional or non-recurring item, and materially comply with the
requirements  of  all  applicable  Israeli   regulations.   (ii)  The  Financial
Statements  fairly  reflect the business  situation of ARANEO,  its  properties,
assets and liabilities as at December 31, 2003 and the profit and loss statement
of ARANEO  contained in the Financial  Statements  fairly  reflect the result of
ARANEO's  operations during the year ended, at such date. ARANEO and the Sellers
represent that there was no material  adverse change in ARANEO's  situation,  as
reflected  in the  Financial  Statements,  other  than  changes  resulting  from
financing ARANEO's on-going operation since December 31, 2003.

5.17 EMPLOYEES. The ARANEO Disclosure Schedule contains true details of ARANEO's
employees,  their duties, date of beginning of their employment,  monthly salary
and benefits and a list of all the  employment  agreements  and  confidentiality
agreements with such employees.  (ii) To the best of the ARANEO's  knowledge and
except as set forth in the ARANEO  Disclosure  Schedule  neither  ARANEO nor any
affiliate of the ARANEO  sponsors,  maintains,  contributes to or is required to
contribute  to any  pension,  welfare,  incentive,  perquisite,  paid  time off,
severance or other benefit  plan,  policy,  practice or agreement.  (iii) To the
best of the Seller's  knowledge and except as set forth in the ARANEO Disclosure
Schedule,  there  are  no  facts  or  circumstances  which  could,  directly  or
indirectly,  subject  ARANEO or any of its  affiliates  to any  liability of any
nature with respect to any pension, welfare,  incentive,  perquisite,  paid time
off, severance or other benefit plan, policy, practice or agreement.

5.18 NO BROKER.  Except for the Commission,  as set forth in Section 9 below, no
agent or broker or other person acting  pursuant to authority given by ARANEO is
entitled to any  commission or finders' fee in connection  with the  transaction
contemplated by this Agreement.

5.19 FULL  DISCLOSURE.  Neither  this  Agreement  nor any  certificates  made or
delivered by ARANEO in connection  herewith  contains any untrue  statement of a
material fact or omits to state a material fact necessary to make the statements
herein or therein not  misleading,  in view of the  circumstances  in which they
were  made.  To the  Seller's  best  knowledge  there  is no  material  fact  or
information  relating  to  the  business,  prospects,  condition  (financial  or
otherwise), affairs, operations, or assets of ARANEO that has not been disclosed
to  TECHNOPRISES  in writing  by ARANEO  either  herein or in the Due  Diligence
material provided to TECHNOPRISES.

6.  ADDITIONAL   REPRESENTATIONS  AND  WARRANTIES  OF  THE  SHAREHOLDERS.   Each
Shareholder hereby represents and warrant to TECHNOPRISES,  and acknowledge that
TECHNOPRISES is entering into this Agreement in reliance thereon, as follows:

6.1 AUTHORITY.  NO CONFLICTS.  Such  Shareholder  has full legal  competence and
capacity and  unrestricted  power to execute and deliver this  Agreement and any
ancillary documents (each a "TRANSACTION DOCUMENT"),  and to perform his, her or
its  obligations  hereunder and  thereunder.  The execution and delivery by such
Shareholder  of this  Agreement  and each  Transaction  Document  to which  such
Shareholder is a party,  and the performance by such  Shareholder of his, her or
its  obligations  hereunder  and  thereunder,  have been duly  authorized by all
requisite  action,  and will not violate any  provision of law, any order of any
court or other  agency  of  government,  any  judgment,  award or  decree or any
provision of any contract or other  instrument  to which such  Shareholder  is a
party,  or by which such  Shareholder is bound,  or conflict  with,  result in a
breach of or constitute a default under any such contract or other instrument.

                                       10
<PAGE>

6.2  AUTHORIZATION.  This Agreement has been duly executed and delivered by such
Shareholder and, assuming the due  authorization,  execution and delivery by the
other parties thereto, constitutes, and each other Transaction Document to which
such Shareholder is a party,  when executed and delivered by such Shareholder as
contemplated  hereby, will constitute,  the legal, valid and binding obligations
of such  Shareholder,  enforceable  against such  Shareholder in accordance with
their  respective  terms,  except to the extent that its  enforceability  may be
limited  by  applicable  bankruptcy,  insolvency,  reorganization  or other laws
affecting the enforcement of creditors' rights generally or by general equitable
principles.

6.3 TITLE TO SHARES.  Such  Shareholder  has good and valid  title to and is the
lawful holder of record and beneficial  owner of the number of ARANEO Shares set
forth  opposite  the name of such  Shareholder  in SCHEDULE 1 to this  Agreement
under the  heading  "ARANEO  Shares"  in each case free and clear of any and all
Liens of any nature  whatsoever.  The  delivery by such  Shareholder  of a share
transfer  deed duly  executed,  to  TECHNOPRISES  pursuant to Section 3.2 above,
together  with a  resolution  of  ARANEO's  Board of  Directors  approving  such
transfer of shares and  registering the transfer in the ARANEO's share register,
will transfer legal,  good, valid and full title to and the legal and beneficial
ownership  of said  ARANEO  Shares,  free and clear of any  Liens of any  nature
whatsoever.

6.4 EXPERIENCE;  RECEIPT OF INFORMATION;  CONSULTATION WITH ADVISERS; REGULATION
S. Except as set forth in the ARANEO  Disclosure  Schedule each  Shareholder  is
either  (i) an  "Accredited  Investor"  as such term is  defined  in Rule 501 of
Regulation D promulgated  under the Securities Act or (ii) not a U.S.  Person as
such term is defined in Regulation S promulgated under the Securities Act and at
the  time  the  offer  and buy  order  for the  Issued  Shares  was  originated,
including,  without  limitation,  at  the  time  the  Shareholder  executed  and
delivered this Agreement and otherwise agreed to purchase the Issued Shares,  it
was located outside the United States.  Each  Shareholder has such knowledge and
experience in financial and business  matters as to be capable of evaluating the
merits and risks  relating to acquiring the Issued Shares and, by reason of such
Shareholder's  financial  and  business  experience,  the  Shareholder  has  the
capacity to protect its  interest in  connection  with the  acquisition  of such
Issued Shares. Each Shareholder  understands that its acquisition of such Issued
Shares involves a high degree of risk. Without prejudice to the  representations
and  warranties  of  TECHNOPRISES,  each  Shareholder  and its counsel have been
afforded the opportunity to ask questions and otherwise  conduct a due diligence
inquiry.  In making its decision to receive the Issued  Shares as  consideration
for the ARANEO  Shares,  such  Shareholder  has relied  upon  review of data and
information  filed  by  TECHNOPRISES  with  the SEC as  well  as all  the  other
documents  and  information  regarding  TECHNOPRISES,  which  the  Sellers  have
requested.  Each  Shareholder has had the opportunity to review with its own tax
advisors  the  federal,  state,  local  and  foreign  tax  consequences  of this
investment and the transactions  contemplated  hereunder. It understands that it
(and not  TECHNOPRISES)  shall be responsible for its own tax liability that may
arise as a result of the transactions contemplated hereunder..

                                       11
<PAGE>

6.5 ACQUISITION FOR OWN ACCOUNT,  ETC. Each  Shareholder is acquiring the Issued
Shares for its own  account  for  investment  and not with a view to the resale,
transfer or distribution  thereof,  nor with any intention of  distributing  any
Issued  Shares.  No other  person  will have any direct or  indirect  beneficial
interest in the Issued Shares  acquired by the  Shareholder at the Closing.  The
Shareholder  is not organized  for the specific  purpose of acquiring the Issued
Shares to be issued at the Closing.  Subject to and without  derogating from the
provisions of section 8 Below, each Shareholder  understands that, in connection
with the  acquisition of the Issued Shares as  contemplated  herein,  the Issued
Shares have not yet been  registered  under the  Securities Act or registered or
qualified under the securities laws of any U.S. state or other jurisdiction,  in
each case by reason of specific  exemptions from the registration  provisions of
the  Securities   Act  and  the   securities   laws  of  such  states  or  other
jurisdictions,  the availability of which depend upon,  among other things,  the
bona fide nature of the investment  intent and the accuracy of the Shareholder's
representations  as  expressed  herein  and in  response  to  the  Shareholder's
inquiries, if any.

6.6 RESTRICTED  SECURITIES.  Subject to section 8, each Shareholder  understands
that  the  Issued  Shares  are and will be  "restricted  securities"  under  the
Securities Act in that such securities  will be acquired from  TECHNOPRISES in a
transaction  not involving a public  offering under the Securities Act, and that
under U.S. federal and state laws and applicable regulations, such Issued Shares
may be resold  without  registration  under the  Securities  Act only in certain
limited   circumstances   and  that  otherwise  such  securities  must  be  held
indefinitely.  In this regard,  Shareholder  understands the resale  limitations
imposed by the Securities Act and is familiar with SEC Rule 144, as presently in
effect,  and the  conditions  which  must be met in order  for  that  Rule to be
available for resale of "restricted securities".

6.7  BROKERS.  Except for the  Commission,  as set forth in Section 9 below,  no
broker,  finder or investment  banker is entitled to any brokerage,  finder's or
other fee or commission in connection with the transactions  contemplated hereby
based upon arrangements made by or on behalf of such Shareholder.

7.    CONDITIONS PRECEDENT TO CLOSING.

7.1 CONDITIONS  PRECEDENT TO THE  OBLIGATIONS OF EACH PARTY.  The obligations of
the parties hereto to consummate the transactions contemplated by this Agreement
are subject to the  satisfaction  or, if permitted by applicable  law, waiver of
the following conditions:

7.1.1.  no court of  competent  jurisdiction  shall have  issued or entered  any
order, writ,  injunction or decree, and no other governmental  entity shall have
issued  any  order,  which is then in effect  and has the  effect of making  the
transactions   contemplated  hereby  illegal  or  otherwise   prohibiting  their
consummation;

7.1.2.  the parties shall have timely  obtained from each relevant  governmental
entity all approvals,  waivers and consents,  if any, necessary for consummation
of, or in connection with, the transactions contemplated hereby;

7.1.3.  All corporate and other  proceedings in connection with the transactions
contemplated  by this  Agreement and all documents and  instruments  incident to
such transactions  shall be in a form and substance  reasonably  satisfactory to
the parties and their respective  counsel,  and the parties and their respective
counsel shall have received all such counterpart originals or certified or other
copies of such documents as they may reasonably request.

7.2 CONDITIONS  PRECEDENT TO THE OBLIGATION OF  TECHNOPRISES.  The obligation of
TECHNOPRISES  to consummate the  transactions  contemplated by this Agreement is
subject,  at the option of TECHNOPRISES,  to the satisfaction at or prior to the
Closing Date of each of the following conditions:

                                       12
<PAGE>

7.2.1.  REPRESENTATIONS,  WARRANTIES AND COVENANTS.  (i) The representations and
warranties of ARANEO and the Sellers  contained in this Agreement  shall be true
and  correct in all  material  respects  (except  for such  representations  and
warranties  that are  qualified  by their terms by a reference  to  materiality,
which  representations  and  warranties  as so  qualified  shall  be true in all
respects) on and as of the date of this  Agreement  and on and as of the Closing
as though such  representations and warranties were made on and as of such time,
except for  representations and warranties which were made only as of a specific
date, which shall be true and correct in all material  respects (except for such
representations and warranties that are qualified by their terms by reference to
materiality which  representations  and warranties as so qualified shall be true
in all respects) only as of such date, (ii) the Sellers shall have performed and
complied in all material respects with all covenants, obligations and conditions
of this  Agreement  required to be performed and complied with by them as of the
Closing,  and (iii)  TECHNOPRISES  shall have received  officers'  certificates,
executed on behalf of ARANEO by duly authorized officers thereof,  certifying as
to the accuracy of the matters set forth in clauses (i) and (ii) of this SECTION
7.2.1.

7.2.2.  CONVERSION  OF  PREFERRED  A SHARES.  All of the  Preferred  A Shares of
ARANEO,  0.01 NIS par value each,  (whether  issued,  authorized or outstanding)
shall be converted into Ordinary shares, 0.01 par value each (the "CONVERSION"),
so that the  authorized and issued share capital of ARANEO shall be as set forth
in Section 5.2 above.

7.2.3.  ADOPTION  OF NEW  ARTICLES  OF  ASSOCIATION.  The  existing  Articles of
Association  of ARANEO will be replaced with new Articles of  Association in the
form attached as SCHEDULE 7.2.3 hereto (the "NEW ARTICLES").

7.2.4. TERMINATION OR EXERCISE OF OPTIONS. All of the options, warrants or other
forms of securities convertible or exercisable into shares of ARANEO outstanding
at the date hereof and immediately  prior to Closing,  shall have been exercised
or  terminated,  so that there  shall be no person or other  entity  entitled to
purchase  or be  allotted  with  shares of ARANEO  and the ARANEO  Shares  shall
constitute  of  ARANEO's   entire  share  capital  on  a  Fully  diluted  Basis.
TECHNOPRISES  shall  have  received  documents  evidencing  the  termination  or
exercise of such options and warrants in a form  satisfactory  to  TECHNOPRISES'
counsel.

7.2.5.  LIABILITIES.  ARANEO shall have paid up for all of its outstanding debts
and/or liabilities pursuant to any contract or other form of commitment, so that
ARANEO's outstanding  liabilities,  as of the Closing Date shall include ongoing
liabilities  up to an aggregate  amount of $25,000.  A list of such  outstanding
liabilities  shall be  attached at the  Closing as  SCHEDULE  7.2.5  hereto (the
"OUTSTANDING LIABILITIES"). The Outstanding Liabilities shall be increased by up
to  US$10,000  for every week by which the Closing is  postponed  after July 31,
2004 for reasons that are under TECHNOPRISES's control . TECHNOPRISES undertakes
to assume the Outstanding Liabilities at the Closing.

7.2.6. RESIGNATION OF DIRECTORS. Mr. Eskenazi and Mr. Hasson will have submitted
their resignation from ARANEO's Board of Directors,  effective as of the Closing
Date.

7.2.7. NO MATERIAL ADVERSE EFFECT. From the date hereof until the Closing, there
will have been no Material Adverse Effect in ARANEO.

7.2.8. SUPPORTING DOCUMENTS. On or prior to the Closing Date, TECHNOPRISES shall
have received copies of the following supporting documents:

7.2.8.1.   resolutions   of  ARANEO's   board  of  directors  and   shareholders
respectively, approving the Conversion, the adoption of the New Articles and the
transfer of the ARANEO  Shares to the Escrow  Agent and  registering  the Escrow
Agent in the  ARANEO's  Register  of  Members  as the  holder of all  issued and
outstanding  shares of the ARANEO, in forms satisfactory to TECHNOPRISES and its
counsel, to be attached at the Closing as SCHEDULE 7.2.8.1 HERETO;

                                       13
<PAGE>

7.2.8.2.  A new Register of Members of ARANEO in which the Escrow Agent shall be
as the holder of all issued and outstanding shares of the ARANEO.

7.2.8.3.  duly completed  notices of transfer  regarding the transfer of all the
issued shares of ARANEO as provided  above in form and substance  acceptable for
immediate filing with the Israeli Registrar of Companies;

7.2.8.4.  Technoprises  shall have received an opinion from the legal counsel of
ARANEO,  dated as of the Closing, in a form satisfactory to Technoprises,  which
will be attached at the Closing as SCHEDULE 7.2.9.4 hereto.

7.3 CONDITIONS  PRECEDENT TO THE OBLIGATIONS OF THE SELLERS.  The obligations of
the Sellers to consummate the  transactions  contemplated  by this Agreement are
subject,  at the option of the Sellers,  to the  satisfaction at or prior to the
Closing Date of each of the following conditions:

7.3.1.  REPRESENTATIONS,  WARRANTIES AND COVENANTS.  (i) The representations and
warranties of TECHNOPRISES contained in this Agreement shall be true and correct
in all material  respects (except for such  representations  and warranties that
are   qualified   by  their  terms  by  a  reference   to   materiality,   which
representations and warranties as so qualified shall be true in all respects) on
and as of the date of this Agreement and on and as of the Closing as though such
representations  and  warranties  were made on and as of such  time,  except for
representations and warranties which were made only as of a specific date, which
shall  be  true  and  correct  in  all  material   respects   (except  for  such
representations and warranties that are qualified by their terms by reference to
materiality which  representations  and warranties as so qualified shall be true
in all respects) only as of such date,  (ii)  TECHNOPRISES  shall have performed
and  complied in all  material  respects  with all  covenants,  obligations  and
conditions of this Agreement  required to be performed and complied with by them
as of  the  Closing,  and  (iii)  the  Sellers  shall  have  received  officers'
certificates,  executed on behalf of TECHNOPRISES  by a duly authorized  officer
thereof,  certifying  as to the accuracy of the matters set forth in clauses (i)
and (ii) of this SECTION 7.3.1.

7.3.2. NO MATERIAL ADVERSE EFFECT. From the date hereof until the Closing, there
will have been no Material Adverse Effect in TECHNOPRISES.

7.3.3.  SUPPORTING DOCUMENTS. On or prior to the Closing Date, the Sellers shall
have received copies of the following supporting documents:

7.3.3.1.  True and correct  copies of  resolutions  of  TECHNOPRISES's  Board of
Directors issuing and allotting the Issued Shares to the Shareholders and to the
Escrow  agent as set forth  above,  against the  transfer  of the ARANEO  Shares
therefore  and  registering  the  Shareholders  in  TECHNOPRISES's  Register  of
Members, in a form satisfactory to the Sellers and their counsel, to be attached
hereto as SCHEDULE 7.3.3.1;

7.3.3.2.  a duly  completed  notice  of such  issuances  in form  and  substance
acceptable for immediate filing with the Israeli Registrar of Companies.

                                       14
<PAGE>

7.3.4.  PRE  RULING.  On or prior to the  Closing  Date the  Sellers  shall have
received a Pre Ruling from the Israeli  Income Tax Authority with respect to the
transaction  contemplated  hereby  to their  full  satisfaction,  provided  that
Closing will be effected  following the lapse of 30 days from the Effective Date
even if such  pre-ruling  is not  obtained by such date (and  provided  that the
other Closing conditions have been fulfilled or waived).

8.  REGISTRATION.  Within 30 days from the date in which  the F-1  Statement  is
declared   effective  (the  "FILING  DATE")   TECHNOPRISES   shall  file  a  new
registration statement under which it will register the Issued Shares for resale
and  distribution  under the US Securities Act of 1933 (the "NEW  REGISTRATION")
and make best  efforts  that the New  Registration  will be  declared  effective
within  90  days  thereafter.   Such  New  Registration  shall  be  executed  by
TECHNOPRISES and at its expense.  TECHNOPRISES  undertakes that the registration
of the Issued  Shares  will be  effective  no later then 9 months  from the date
hereof.  In the event that the  registration  of the Issued  Shares  will not be
effective  by the lapse of 9 months  from the date  hereof,  the  Sellers  (by a
resolution  of the  majority  of  the  Sellers)  shall  have  a  right,  without
derogating  from any other right or remedy that they may have, to terminate this
agreement and the transaction  contemplated hereby and to have the Araneo shares
returned to them.  Upon  registration  the Issued Shares will be free for trade,
and shall not be subject to any  lock-up  period or other  restrictions,  except
with  respect to 1/20 of the Issued  Shares which shall be subject to the Escrow
terms as detailed in section 11.7 and except for any lock-up  periods  which are
imposed  under any mandatory ACC or NASDAQ  regulations,  provided  however that
such  mandatory  lock-up  was not  imposed as a result of any act or omission by
TECHNOPRISES or any one on its behalf.

9.  COMMISSION.  At the Closing the parties  will pay MRBID Group LLC and Yossef
Tadmor (collectively: the "FINDERS") a finders commission, as follows: (i) 3% of
the Issued  Shares  will be issued to the Finders  (in equal  portions,  "ARANEO
COMMISSION  SHARES") on account of the Issued Shares due to the Shareholders (on
a  pro-rata  basis);  (ii)  TECHNOPRISES  will  issue to the  Finders  (in equal
portions) such number of TECHNOPRISES  Ordinary Shares equal to 3% of the Issued
Shares,  which shall not, for the removal of doubt,  be on account of the Issued
Shares (the "TECHNOPRISES COMMISSION SHARES")

10.   ADDITIONAL COVENANTS.

10.1  CONSENTS;  COOPERATION.  The parties shall promptly apply for or otherwise
seek, and use its commercially  reasonable  efforts to obtain,  all consents and
approvals required to be obtained by it for the consummation of the transactions
contemplated hereby.

10.2 NOTICES.  Each of the parties shall give prompt notice to the others of (i)
any notice or other  communication  from any person or entity  alleging that the
consent of such person or entity is or may be required  in  connection  with the
transactions  contemplated hereby, other than any such consent disclosed in this
Agreement  as required by one of the  parties  hereto;  (ii) any notice or other
communication  from any governmental  entity in connection with the transactions
contemplated  hereby;  (iii)  any  actions,  suits,  claims,  investigations  or
proceedings commenced or, to its knowledge,  threatened against,  relating to or
involving or otherwise  affecting such party, or that relate to the consummation
of the transactions  contemplated  hereby; (iv) any change that could reasonably
be expected  to have a Material  Adverse  Effect on such  party,  or to delay or
impede  the  ability  of such  party to  perform  their  respective  obligations
pursuant to this Agreement and to effect the  consummation  of the  transactions
contemplated hereby.

                                       15
<PAGE>

10.3 ACCESS TO INFORMATION. From the date of this Agreement to the Closing Date,
each party  shall (i) provide to the other and their  representatives  access at
reasonable  times  upon  prior  notice  to  its  officers,   employees,  agents,
properties,  offices and other  facilities and to the books and records thereof,
and (ii) furnish promptly such information concerning its business and personnel
as  the  other  party  or  its   representatives   may  reasonably  request.  No
investigation  conducted pursuant to this Section 10.3 shall affect or be deemed
to modify any representation or warranty made in this Agreement.

10.4 FURTHER  ASSURANCES.  Each of the parties hereto shall perform such further
acts and execute such further  documents as may reasonably be necessary to carry
out and give full effect to the  provisions of this Agreement and the intentions
of the parties as reflected thereby.

10.5  CERTAIN  TAX  MATTERS.  Each  party  will,  at its own  expense,  file all
necessary tax returns and other documentation with respect to all taxes and fees
incurred by it at Closing, as required by applicable law. Any Stamp tax required
to be paid in connection with transaction  contemplated hereby shall be borne by
TECHNOPRISES.

10.6 PUBLIC ANNOUNCEMENTS. Until the earlier of termination of this Agreement or
the Closing Date,  TECHNOPRISES,  on the one hand, and the Sellers, on the other
hand, will consult with each other before issuing any press release or otherwise
making any public  statements with respect to the Agreement or the  transactions
contemplated  hereby and shall not issue any such press release or make any such
public  statement  that is not  approved  by the other  party,  except as may be
required by law or the rules of the NASDAQ  over-the-counter  bulletin board, in
which case the parties will make  reasonable  efforts to consult with each other
prior to the making of such public statement.

10.7  LEGEND

      Until the  registration of the shares in accordance with the provisions of
      section 8 above, the share certificate  evidencing the Issued Shares shall
      bear the following legend:

      "THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER  THE  SECURITIES  ACT OF  1933,  AS  AMENDED,  AND MAY NOT BE  SOLD,
      TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE
      OF (i) AN EFFECTIVE  REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER SAID
      ACT OR (ii) AN  OPINION OF COUNSEL  SATISFACTORY  TO THE ISSUER  THAT SUCH
      REGISTRATION IS NOT REQUIRED UNDER SUCH ACT."

10.8  EXPENSES.  All  costs  and  expenses  incurred  in  connection  with  this
Agreement,  and the transactions  contemplated hereby and thereby, shall be paid
by the party incurring such expenses.

11.   EFFECTIVENESS; SURVIVAL; INDEMNIFICATION AND ESCROW

11.1 The representations,  warranties, covenants and obligations of the Parties,
and the rights and remedies  that may be exercised by the Parties,  shall not be
limited or otherwise affected by or as a result of any information furnished to,
or any investigation made by or knowledge of, any of the Parties or any of their
representatives.

                                       16
<PAGE>

11.2 Subject to Section 11.4, during a period of 24 months from the date hereof,
each of the Parties to this Agreement  shall  indemnify and hold the other party
and each of their directors, officers, employees, affiliates, agents, successors
and assigns, harmless from any and all claims, liabilities, obligations, damages
or expenses  (including,  but without  limitation,  reasonable  attorney's fees)
arising out of a breach of the representations and warranties and covenants made
by  such  Party,  which  is  contained  in  this  Agreement  or  any  breach  or
non-fulfillment  of,  or  any  failure  to  perform,  any of  the  covenants  or
undertaking  of such  party  which are  contained  in or made  pursuant  to this
Agreement ("INDEMNIFICATION EVENT").

      If a Third-Party Claim is made against ARANEO that may subject the Sellers
to the above indemnification, the Sellers will be entitled to participate in the
defense   thereof  and,  to  assume  the  defense  thereof  at  the  Expense  of
TECHNOPRISES.

11.3 The  liability of each of the Sellers  pursuant to this Section 11 shall be
limited in the aggregate to the value of the Issued Shares issued to such Seller
at the Closing, provided however that such limitation shall not apply if a Party
made the representation or warranty upon intentional misrepresentation or fraud.
The  liability  of  TECHNOPRISES  and EVR  pursuant to this  Section 11 shall be
limited  in  the  aggregate  to  the  value  of  the  Issued  Shares  issued  by
TECHNOPRISES to the Sellers in, provided  however that such limitation shall not
apply  if  TECHNOPRISES  or  EVR  made  the   representation  or  warranty  upon
intentional misrepresentation or fraud.

11.4 The Parties (or any of them) shall not bring any claim, or series of claims
for monetary  compensation  under this Section 11 unless the damages  claimed in
accordance  therewith are at least twenty five thousand U.S. dollars US$ 25,000,
or, in the case of several damages, none of which individually amounts to twenty
five  thousand  U.S.  dollars (US$ 25,000),  the  aggregate  damages  claimed in
accordance  therewith  are at least  twenty  five  thousand  U.S.  dollars  (US$
25,000).

11.5 With the exception of claims based upon  intentional  misrepresentation  or
fraud,  the remedy under this Section 11, shall be the sole and exclusive remedy
of the Parties for any  inaccuracy or breach in any  representation  or warranty
contained in this Agreement or any indemnification required hereunder.

11.6 Each of the  Shareholders  agrees  that he,  she or it is,  subject  to the
limitations  set forth in Sections 11.1 and 11.5 above,  severally on a pro-rata
basis  with the other  Shareholders,  liable  for any  breach  of any  covenant,
representation or warranty of the Sellers.

11.7 In order to secure ARANEO's and the Sellers' representations and warranties
hereunder  it is  recorded  and agreed  that at the  Closing  1/20 of the Issued
Shares (1/20 of the shares issuable to each  respective  Seller) shall be issued
to and  deposited  with  an  escrow  agent,  who's  identity  will  be  mutually
determined  by the parties prior to the Closing (the "ESCROW  AGENT"),  who will
hold such shares in Escrow for the Sellers for a period of twelve  months  under
the terms of an Escrow  Agreement  which will be mutually  agreed by the parties
and the Escrow Agreement prior to Closing (the "ESCROW  AGREEMENT"),  which will
be signed and executed at the closing hereunder.

                                       17
<PAGE>

11.8 In  order to  secure  TECHNOPRISES's  representations  and  warranties  and
covenants  hereunder  (and the  undertaking  to  register  the Issued  Shares in
particular)  it is recorded  and agreed that at the Closing,  the ARANEO  Shares
shall be deposited  with the Escrow  Agent,  who will hold such shares in Escrow
for  TECHNOPRISES for a period of twelve months or until the registration of the
Issued Shares in  accordance  with section 8 above (the earlier of the two) (the
"ESCROW PERIOD") under the terms of the Escrow Agreement,  which shall include a
prohibition  on taking any of the following  actions  without the consent of the
majority of the  Sellers:  (1) the  disposition  or transfer of any of ARANEO 's
major assets (other than in connection with licenses  and/or other  transactions
in the  ordinary  course of  business);  and (2) the  voluntary  liquidation  of
ARANEO;  and (3) create (or increase)  material liability for ARANEO (other than
in the ordinary course of business).

      During the Escrow  Period,  TECHNOPRISES's  shall furnish the Sellers with
reasonable  information  about  ARANEO as shall be requested by the Sellers from
time to time,  including without  limitation any financial  statements of ARANEO
and the  Sellers  shall have  unlimited  access to any  information  relating to
ARANEO. In addition, the Sellers shall have the right to appoint one observer to
ARANEO 's board of director.  Such observer  shall have the right to participate
in, and shall be invited  to,  every  meeting  (or  resolution)  of the board of
directors of ARANEO and any committee thereof.

      Subject to the said restrictions, terms and conditions, TECHNOPRISES shall
act as the sole  shareholder  of Araneo for all purposes and shall manage ARANEO
during the Escrow Period.

12.   MISCELLANEOUS

12.1 INTERPRETATION.  The preamble,  Schedules and Exhibits hereto constitute an
integral  part hereof.  The headings of the  sections  and  subsections  of this
Agreement are for  convenience of reference only and are not to be considered in
construing this Agreement.

12.2 EFFECTIVENESS; SURVIVAL. Each representation and warranty in this Agreement
is deemed to be made on the date of this  Agreement and at the Closing Date, and
shall survive and remain in full force and effect after the Closing Date.

12.3  GOVERNING  LAW;  ARBITRATION.  This  Agreement  shall be  governed  by and
construed  according to the laws of the State of Israel,  without  regard to the
conflict of laws provisions thereof.

The parties  shall  endeavor to equitably  settle any  dispute,  which may arise
between them under or in connection to this Agreement. If and to the extent that
such disputes shall not be so amicably resolved within thirty (30) days from the
date the dispute was brought to the  attention of all the parties  hereunder the
dispute  shall  be  referred  to a single  arbitrator  which  identity  shall be
mutually  agreed by the parties within such thirty (30) day period  (hereinafter
"THE  ARBITRATOR").  If the parties  shall not be able to reach an  agreement in
relation to the identity of the Arbitrator  within such thirty (30) days period,
than, upon the written request of either party,  the identity of such arbitrator
shall be jointly  determined by Adv. E. Arad of Bach, Arad,  Scharf & Co. (or in
his absence,  another senior  partner in such firm) - on behalf of  Technoprises
and EVR and Adv.  Atir  Harduf-Jaffe  of Ficher  Bachar,  Chen & Co.  (or in his
absence,  a senior  partner  of such  firm) - on  behalf of the  Seller,  within
additional  five (5) days. The Arbitrator  shall be bound to reason his decision
and the arbitration shall be subject to the substantive law (but not to rules of
procedure and evidence).

12.4

                                       18
<PAGE>

12.5 SUCCESSORS AND ASSIGNS;  ASSIGNMENT.  Except as otherwise expressly limited
herein,  the  provisions  hereof  shall  inure to the benefit of, and be binding
upon,   the   successors,   assigns,   heirs,   executors,   beneficiaries   and
administrators of the parties hereto.

12.6 ENTIRE  AGREEMENT;  AMENDMENT AND WAIVER.  This Agreement and the Schedules
hereto  constitute the full and entire  understanding  and agreement between the
parties with regard to the subject matters hereof and thereof.  Any term of this
Agreement  may be amended  and the  observance  of any term hereof may be waived
(either  prospectively or retroactively  and either generally or in a particular
instance) only with the written consent of all of the parties to this Agreement.

12.7 NOTICES,  ETC. All notices and other  communications  required or permitted
hereunder to be given to a party to this Agreement shall be in writing and shall
be telecopied or mailed by registered or certified  mail,  postage  prepaid,  or
otherwise  delivered by hand or by messenger,  addressed to such party's address
as set forth below or at such other address as the party shall have furnished to
each other party in writing in accordance with this provision:

If to TECHNOPRISES:               12 Raoul Wallenberg St. Tel Aviv, Israel
                                  Attn:  Adam Ofek, President
                                                                     -
                                  Phone:  972-3-7665100
                                  Fax:  972-3-6444207
                                  With a copy to:
                                  Bach, Arad, Scharf & Co.
                                  2 Hashalom Rd.
                                  Tel-Aviv 67892 Israel
                                  Attn: Ehud Arad, Adv.
                                  Phone: 972-3-5625303
                                  Fax: 972-3-5625304

If to the Sellers:            At the address set forth next to such
                              sellers name in Schedule 1

                                  With a copy to:
                                  Fischer, Behar, Chen & Co.
                                  3 Daniel Frisch Street   Tel Aviv 64731
                                  Attn: Atir Hardof-Jaffe, Adv.
                                  Phone: 972-3-6944111
                                  Fax: 972-3-6091116

                  if to any Shareholder, to the address appearing under the name
                  of such Shareholder in SCHEDULE 1 hereto;

                  or such other  address  with  respect to a party as such party
                  shall  notify each other  party in writing as above  provided.
                  Any notice sent in accordance  with this Section 12.7 shall be
                  effective  (i)  if  mailed,  seven  (7)  business  days  after
                  mailing, (ii) if sent by messenger,  upon delivery,  and (iii)
                  if sent  via  telecopier,  upon  transmission  and  electronic
                  confirmation  of receipt or (if  transmitted and received on a
                  non-business   day)  on  the  first   business  day  following
                  transmission and electronic confirmation of receipt (PROVIDED,
                  HOWEVER,  that any notice of change of  address  shall only be
                  valid upon receipt).

                                       19
<PAGE>

12.8 DELAYS OR OMISSIONS.  No delay or omission to exercise any right, power, or
remedy  accruing to any party upon any breach or default  under this  Agreement,
shall be  deemed  a  waiver  of any  other  breach  or  default  theretofore  or
thereafter occurring.  Any waiver,  permit,  consent, or approval of any kind or
character  on the  part  of any  party  of any  breach  or  default  under  this
Agreement,  or any  waiver  on  the  part  of any  party  of any  provisions  or
conditions of this Agreement,  must be in writing and shall be effective only to
the extent  specifically set forth in such writing.  All remedies,  either under
this Agreement or by law or otherwise  afforded to any of the parties,  shall be
cumulative and not alternative.

12.9  SEVERABILITY.  If any  provision  of this  Agreement is held by a court of
competent  jurisdiction  to be  unenforceable  under  applicable  law, then such
provision  shall be  excluded  from this  Agreement  and the  remainder  of this
Agreement  shall be  interpreted as if such provision were so excluded and shall
be enforceable in accordance  with its terms;  PROVIDED,  HOWEVER,  that in such
event this Agreement shall be interpreted so as to give effect,  to the greatest
extent  consistent  with and  permitted  by  applicable  law, to the meaning and
intention of the excluded  provision  as  determined  by such court of competent
jurisdiction.

12.10   COUNTERPARTS.   This   Agreement  may  be  executed  in  any  number  of
counterparts,  each of which shall be deemed an original and enforceable against
the parties actually executing such counterpart, and all of which together shall
constitute one and the same instrument.

                 [Remainder of page intentionally left blank.]

                                       20
<PAGE>

      IN WITNESS  WHEREOF the parties have signed this Share Purchase  Agreement
as of the date first hereinabove set forth.

TECHNOPRISES LTD.             EVR APPLICATIONS OF                ARANEO LTD.
                              VIRTUAL REALITY (94) LTD.

By: __________________

                              By: ____________________

                                                            By: ________________

Name: ________________

                              Name: __________________

                                                            Name: ______________

Title: _______________

                              Title: _________________

                                                            Title: _____________

[ARANEO Shareholders - insert signature places for each shareholder.]

By: ___________________

Name: _________________

Title: ________________

                  [Signature page of Share Purchase Agreement]

                                       21EXHIBIT 10.21

THE SECURITIES  REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED,  OR APPLICABLE  STATE  SECURITIES  LAWS, AND MAY NOT BE
SOLD, OFFERED FOR SALE OR OTHERWISE TRANSFERRED,  PLEDGED OR HYPOTHECATED IN THE
ABSENCE  OF AN  EFFECTIVE  REGISTRATION  STATEMENT  AS TO  SUCH  SECURITIES,  OR
DELIVERY  OF AN OPINION OF COUNSEL  IN FORM AND  SUBSTANCE  SATISFACTORY  TO THE
ISSUER OF THESE SECURITIES THAT SUCH REGISTRATION IS NOT REQUIRED.

                                TECHNOPRISES LTD.

                     5% SECURED CONVERTIBLE PROMISSORY NOTE
                     --------------------------------------

U.S. $250,000                                                      JUNE 30, 2004

      THIS  PROMISSORY  NOTE (this  "NOTE") is made as of this 30th day of June,
2004, by  Technoprises  Ltd., a corporation  incorporated  under the laws of the
State of  Israel  ("MAKER"),  in favor of  Bridges  & Pipes  LLC or its  assigns
("PAYEE").

                                    RECITALS

      WHEREAS,  Maker requires the financing  provided pursuant to this Note and
certain  other  similar  notes  issued  concurrently  herewith  for an aggregate
collective principal amount of up to $2,000,000 (collectively, the "NOTES"), for
working capital and general corporate  purposes,  including  investor and public
relations funding.

      WHEREAS, Maker also has agreed to issue Payee a warrant (the "WARRANT") in
connection  with the  issuance of this Note (the  Warrant  and Note  referred to
collectively  hereinafter  as  the  "TRANSACTION  SECURITIES").  The  shares  of
ordinary stock, NIS .5 par value per share, of Maker ("COMMON STOCK") underlying
the Warrant are referred to hereinafter as the "WARRANT SHARES."

      WHEREAS, in order to secure the payment obligation of the Maker hereunder,
the Maker and the Payee  simultaneously  herewith are executing and delivering a
Security Agreement with respect to assets and properties of the Maker located in
the United States and an Israeli Debenture  Agreement with respect to assets and
properties  of the Maker  located  in Israel,  each dated as of the date  hereof
(collectively, the "SECURITY AGREEMENTS").

<PAGE>

                                 NOTE AGREEMENT

      NOW,  THEREFORE,  for and in consideration of the mutual agreements herein
contained,   and  for  and  in   consideration   of  other  good  and   valuable
consideration,  the receipt and  sufficiency  of which are hereby  acknowledged,
Maker and Payee hereby covenant and agree as set forth below.

      FOR VALUED  RECEIVED,  Maker hereby promises to pay to the order of Payee,
the principal  sum of two hundred fifty  thousand  dollars  ($250,000),  or such
lesser  amount as may from time to time be  otherwise  owing from Maker to Payee
under this Note,  together with  interest on the  principal  amount from time to
time outstanding  hereunder  accrued from the date hereof at the rate and in the
manner set forth  below.  All payments of principal or interest or both shall be
paid as set forth below,  and each such payment shall be made in lawful money of
the United States of America.

      This Note is subject to the following terms and conditions:

      1. PAYMENTS OF PRINCIPAL AND INTEREST.

            (a)  REPAYMENT.  Unless  otherwise  repaid or  converted as provided
herein,  the entire  unpaid  principal  balance of this Note,  together with all
accrued but unpaid  interest  thereon,  shall be due and payable in full on June
30th,  2005  (the  "MATURITY   DATE").   Payee's   conversion  rights  shall  be
extinguished  upon payment in full of all principal and accrued interest and all
other amounts due hereunder on or after the Maturity Date. Interest shall accrue
and be payable in arrears on an Interest  Payment  Date (as defined in Section 2
below) or any payment hereof.

            (b) LATE FEE UPON  FAILURE  TO REPAY.  If Maker  fails to repay this
Note on or prior to the Maturity  Date or such earlier date  resulting  from the
acceleration  of the date upon which the principal  amount of this Note shall be
payable in accordance with the terms of this Note (due to an Event of Default or
otherwise),  the interest rate on the outstanding principle amount,  accrued and
unpaid  interest and all other amounts due hereunder shall increase to a rate of
18% per  annum  until  all  amounts  owing  on this  Note  are  repaid  in full,
commencing  on the earlier of: (a) the Maturity  Date or (b) the date upon which
the repayment of this Note is accelerated pursuant to the terms hereof.

            (c) OPTIONAL  PREPAYMENT.  After  December 30, 2004,  Maker shall be
entitled,  at its option  upon  thirty  days prior  written  notice,  to repay a
portion or all of the outstanding principal amount together with interest,  late
fees,  penalties and all other  amounts due  thereunder;  PROVIDED,  HOWEVER any
principal  amount of this Note that is repaid prior to maturity  shall be repaid
at a early redemption  premium equal to 120% of the principal amount proposed to
be repaid (such early redemption premium shall be in addition to and not in lieu
of any interest, late fees, penalties or other amounts due hereunder); PROVIDED,
FURTHER HOWEVER,  that Payee shall have the right but not the obligation  during
such thirty (30) day notice period to convert the entire  outstanding  principal
balance  of this  Note,  together  with all  accrued  but  unpaid  interest  due
hereunder  into  shares of capital  stock of the Maker  pursuant to the terms of
SECTION 3 hereof.

            (d) MANNER OF PAYMENT.  Maker shall make payment in accordance  with
the terms of this Note no later than 5:30 p.m.  (New York City time) on the date
when due, in  immediately  available  funds.  Each payment of  principal  and of
interest  shall be paid by Maker  without  setoff  or  counterclaim  to Payee at
Payee's  address set forth in SECTION 15, or to such other  location or accounts
within the United  States as Payee may  specify in writing to Maker from time to
time, in immediately available funds.

<PAGE>

            (e) CANCELLATION. After all amounts owed on this Note have been paid
in full and/or all amounts due under this Note has been  converted  in full into
Common  Stock as provided in SECTION 3, this Note will be  surrendered  to Maker
for  cancellation  and  will  not  be  reissued;   provided  however,  the:  (i)
representations and warranties contained herein and (ii) the covenants contained
in Section 6(c) hereof  shall  survive such  repayment or  conversion  until the
Warrant is exercised in full or expires.

      2. INTEREST RATE.

            (a) This Note will bear  interest at the rate of five  percent  (5%)
per year,  compounded  monthly from the date hereof to and including the date of
payment or conversion of this Note. Interest on this Note shall be calculated on
the basis of actual days elapsed and a 360-day year of twelve 30-day months.

            (b)  Interest  on this Note shall be due and payable  quartetrly  in
arrears on September  30, 2004,  December 30, 2004,  March 30, 2005 and June 30,
2005 (the "INTEREST PAYMENT DATES"),  except that if such date is not a Business
Day then the Interest Payment Date shall be the next day that is a Business Day.
Such interest shall, at the option of Maker, either be paid in cash or in shares
of Common Stock (in accordance with Section 3). Any accrued interest that is not
otherwise paid in cash or in shares of Common Stock on the  applicable  Interest
Payment Date  (whether due to Maker's  inability to pay such interest in cash or
in shares of Common  Stock) shall  automatically,  and without any action on the
part of Maker, accrue and compound and be added to the outstanding principal and
interest due under the Note on such Interest Payment Date.

      3. CONVERSION INTO EQUITY OF MAKER.

            (a) CONVERSION.  The holder of this Note shall have the right at its
sole election:  (i) at any time (including  without limitation during the notice
periods  set forth in SECTION  1(C) and  SECTION 4 hereof) to convert  all, or a
portion,  of the principal  amount of this Note plus accrued  interest  thereon,
late fees and other amounts due  hereunder or (ii) on an Interest  Payment Date,
to convert all accrued interest, in each case into shares of Common Stock at the
price of $.10 per share of Common Stock (subject to proportional adjustments for
stock splits, stock dividends and the like) (the "Conversion Price").  Upon such
conversion,  Payee shall  receive the same rights as all other holders of Common
Stock in Maker and shall be treated for all purposes as the record holder of the
shares of Common Stock issued upon such conversion (the "SHARES").

<PAGE>

            (b) MECHANICS AND EFFECT OF  CONVERSION.  Upon the conversion of the
principal amount as provided herein,  in lieu of any fractional shares of Common
Stock to which Payee would otherwise be entitled,  Maker shall pay cash equal to
such  fraction  multiplied  by the last reported sale price of a share of Common
Stock on the Trading  Market on which the Common  Stock is then listed or quoted
for  trading on the  Trading  Day prior to the date of  conversion  (or,  if the
Common Stock is not then listed or quoted for trading on any Trading Market, the
fair  market  value of a share of Common  Stock as  determined  by Maker in good
faith).  Upon  conversion of this Note in full pursuant to this SECTION 3, Payee
shall surrender this Note, duly endorsed,  at the principal  offices of Maker or
any transfer agent for Maker. Payee shall also execute and deliver any ancillary
agreements as may be required or reasonably  requested to effect the  conversion
of this  Note.  Maker  shall pay any and all issue and other  taxes  that may be
payable in respect of any issue or delivery of Shares  pursuant to this  SECTION
3. As used in this SECTION 3(B),  the term "TRADING  MARKET" means the following
markets or  exchanges  on which the Common Stock is listed or quoted for trading
on the date in question:  the OTC Bulletin  Board,  the American Stock Exchange,
the New York Stock  Exchange,  the Nasdaq National Market or the Nasdaq SmallCap
Market,  and the term "TRADING DAY" means (i) a day on which the Common Stock is
traded on a  Trading  Market,  or (ii) if the  Common  Stock is not  quoted on a
Trading  Market,  a day on which  the  Common  Stock is  quoted  in the over the
counter market as reported by the National Quotation Bureau Incorporated (or any
similar  organization or agency succeeding to its functions of reporting price);
provided, that in the event that the Common Stock is not listed or quoted as set
forth in clauses  (i) and (ii)  hereof,  then  Trading Day shall mean a business
day.

            (c) RESERVATION OF SHARES. Maker shall at all times reserve and keep
available out of its authorized  equity  securities,  solely for the purposes of
issuance  upon the  conversion of this Note as herein  provided,  such number of
Shares as shall then be issuable upon the full  conversion  of this Note.  Maker
covenants that it shall cause all Shares which shall be so issued to be duly and
validly issued and fully paid and nonassessable  and free from all taxes,  liens
and charges with  respect to the issuance  thereof,  and,  without  limiting the
generality of the foregoing, Maker covenants that it will from time to time take
all such action as may be required to assure that the par value per share of the
equity  securities  will at all  times be equal to or less  than the  conversion
price.  Maker will take all such action as may be  necessary  to assure that all
such  Shares  may  be so  issued  without  violation  of any  applicable  law or
regulation.

            (d) RIGHTS PRIOR TO CONVERSION.  Payee shall have no equity interest
in Maker or any voting, dividend, liquidation or dissolution rights with respect
to any equity  securities  of Maker solely by reason of this Note.  Furthermore,
prior to the  conversion,  as set forth in this  SECTION 3, and the issuance and
delivery  of a  certificate  or  certificates  evidencing  the Shares  purchased
pursuant to the  conversion,  Payee  shall have no  interest  in, or any voting,
dividend,   liquidation  or  dissolution  rights  with  respect  to  any  equity
securities of Maker.

            (e) REGISTRATION RIGHT IN MAKER.

                  (i) No later than  forty-five  (45) days following the date of
            issuance of this Note (the "FILING  DATE"),  Maker shall prepare and
            file with the Commission a registration statement (the "REGISTRATION
            STATEMENT")  covering  exclusively  the  resale all of the shares of
            capital  stock of the Maker  issued or  issuable  pursuant  to or in
            connection herewith (including without limitation the Shares and the
            Warrant Shares) (collectively,  the "REGISTRABLE SECURITIES"), which
            offering  shall be made on a continuous  basis  pursuant to Rule 415
            under  the  Securities  Act.  The  Registration  Statement  required
            hereunder shall be on Form F-1 or such other form  appropriate  form
            that the Maker is eligible  for and that is  exclusive to the Shares
            and the Warrant Shares. Maker shall use its commercially  reasonable
            efforts to cause the Registration Statement to be declared effective
            under the  Securities  Act as promptly as possible  after the filing
            thereof and shall use its  commercially  reasonable  efforts to keep
            the  Registration   Statement   continuously   effective  under  the
            Securities  Act  until  the  date  when all  Registrable  Securities
            covered by the Registration Statement (a) have been sold pursuant to
            the  Registration  Statement or an exemption  from the  registration
            requirements  of the  Securities  Act or (b) may be sold without any
            volume  or  other   restrictions   pursuant   to  Rule  144(k)  (the
            "EFFECTIVENESS  PERIOD").  Payee (or its designee(s))  shall also be
            provided  with  such  other  rights,   and  Maker  shall  have  such
            obligations,  as customarily accompany investor registration rights,
            including,  without  limitation,  the  right of  Payee to  customary
            indemnification  by Maker,  Maker's  obligation  to prepare and file
            with  the  Commission   such  amendments  and  supplements  to  such
            registration statement as may be necessary to keep such registration
            statement  effective until the disposition of all securities covered
            by such registration statement,  the obligation of Maker to register
            and qualify the securities  covered by such  registration  statement
            under  applicable state securities and blue sky laws, the obligation
            of  Maker to  cause  the  securities  covered  by such  registration
            statement  to be listed or  quoted  on the  Trading  Market on which
            Maker's  securities  are then listed or quoted and the obligation of
            Maker to cause to be provided  customary  legal opinions and comfort
            letters of its  independent  certified  accountants  if requested in
            connection with a sale pursuant to such registration statement).

<PAGE>

                  (ii) FILING  DEFAULT  LIQUIDATION  DAMAGES.  If a Registration
            Statement  is not filed on or prior to the Filing  Date if  required
            under  SECTION  3(E)(I)  hereof,  then  Maker  shall pay to Payee an
            amount in cash,  until the earlier of the date that the Registration
            Statement  is  filed  and  the  Registrable  Securities  may be sold
            pursuant to Rule 144(k), as liquidated damages and not as a penalty,
            (i) one (1%) percent of the  aggregate  unpaid  principal  amount of
            this Note for the first  forty-five (45) days (or a pro rata portion
            of one (1%) percent for any part thereof)  following Maker's failure
            to file,  and (ii) an  additional  one (1%) percent of the aggregate
            upaid principal  amount of this Note for each thirty (30) day period
            subsequent  thereto (or a pro rata  portion of one (1%)  percent for
            any  part  thereof),  such  payment(s)  to be  made  in  immediately
            available  funds no later than five (5) days after the first date of
            each 30 or 45 day period (or any part thereof),  as the case may be,
            during Maker's failure to file.

                  (iii) EFFECTIVENESS  DEFAULT LIQUIDATION  DAMAGES. In addition
            to any liquidated  damages paid,  accrued and/or to be paid pursuant
            to  SECTION  3(E)(II),  if (1)  the  Registration  Statement  is not
            declared  effective on or prior to one hundred and twenty (120) days
            following  the  issuance  of the  Note,  or (2) if the  Registration
            Statement has been declared  effective and subsequent thereto is not
            effective  (or   otherwise   does  not  permit  the  resale  of  the
            Registrable Securities covered thereby) for any period of time until
            the  date  Payee  no  longer  owns any  Registrable  Securities  (an
            "EFFECTIVENESS DEFAULT"), then Maker shall pay to Payee an amount in
            cash until the date the Registration Statement is declared effective
            (and  permits  the  resale  of the  Registrable  Securities  covered
            thereby) (or if  previously  declared  effective  until the date the
            Registration  Statement becomes effective (and otherwise permits the
            resale of the Registrable  Securities  covered thereby)  again),  as
            liquidated  damages  and not as a  penalty,  equal  to (i) one  (1%)
            percent of the aggregate  unpaid  principal  amount of this Note for
            the first  forty  five (45) days (or a pro rata  portion of one (1%)
            percent  for any  part  thereof),  and (ii) an  additional  one (1%)
            percent of the aggregate  unpaid  principal  amount of this Note for
            each  thirty  (30)  day  period  subsequent  thereto  (or a pro rata
            portion of one (1%) for any part thereof)  until the earlier of such
            date (a) the  Registration  Statement is declared  effective  (or if
            previously  declared  effective  until  the  date  the  Registration
            Statement becomes effective (and otherwise permits the resale of the
            Registrable   Securities   covered  thereby)  again),  and  (b)  the
            Registrable Securities may be sold pursuant to Rule 144(k). Any such
            payment(s)  shall be made in  immediately  available  funds no later
            than five (5) days  after the first day of each 30 or 45 day  period
            (or  any  part   thereof),   as  the  case  may  be,  of  each  such
            Effectiveness Default.

<PAGE>

            (f) NO INCONSISTENT  AGREEMENTS.  Maker agrees not to enter into any
other agreement  providing which is inconsistent  with the  registration  rights
provisions of this Note or contains  registration  rights  provisions  which are
senior to the registration rights granted in this Note.

      4. REPRESENTATIONS AND WARRANTIES OF THE PAYEE.

            (a)  the  Payee  has  had an  opportunity  to  discuss  the  Maker's
business, management and financial affairs with its management and to obtain any
additional  information  which the Payee has deemed necessary or appropriate for
deciding  whether or not to accept the Note and grant the Maker with  funding in
exchange  for the  Note,  and has had an  opportunity  to  receive,  review  and
understand  the  disclosures  and  information  regarding the Maker's  financial
statements,  capitalization  and  other  business  information  as set  forth in
Maker's filings with the Securities and Exchange Commission.

            (b) The Payee has such  knowledge  and  experience  in financial and
business matters,  including investments in other early stage companies, that it
is capable of  evaluating  the merits and risks of funding the Maker in exchange
for the Note,  and it is able to bear the economic  risk of such loan.  Further,
the Payee has such  knowledge and  experience in financial and business  matters
that he or it is capable of utilizing the  information  made available to him or
it in connection with the funding.

            (c) If the Payee is a corporation, partnership, trust or estate: (i)
the  individual  executing and  delivering  this Note on behalf of the Payee has
been duly authorized and is duly qualified to execute and deliver this Agreement
on behalf of the Payee and (ii) the signature of such individual is binding upon
the Payee.

<PAGE>

      5. REPRESENTATIONS AND WARRANTIES OF THE MAKER

            (a) DULY  INCORPORATED.  Maker and each of its subsidiaries,  all of
which are set forth on SCHEDULE 5(A) attached hereto (the  "SUBSIDIARIES"),  are
corporations duly incorporated,  validly existing and in good standing under the
laws  of its  jurisdiction  of  incorporation,  with  the  requisite  power  and
authority to own,  lease and operate its  respective  properties and conduct its
business  as  presently  conducted  or  proposed  to be  conducted,  and is duly
qualified to do business as a foreign  corporation in good standing in all other
jurisdictions where the ownership or leasing of its properties or the conduct of
its  business  requires  such  qualification,  except where the failure to be so
qualified would not,  individually or in the aggregate,  have a Material Adverse
Effect (as defined below).  Opposite the name of the Maker and the  Subsidiaries
on SCHEDULE 5(A) hereto is the jurisdiction of  incorporation  for the Maker and
each of its  Subsidiaries  and the  jurisdiction(s)  in which  each such  entity
maintains  an office or material  assets  and/or is  qualified  to do  business.
Except as set forth on Schedule 5(a), each of the Subsidiaries is a wholly owned
subsidiary of the Maker.

            (b) CORPORATE  POWER.  The execution and delivery of this Note,  the
Warrant,  the Security  Agreements and any other document or instrument executed
in connection  herewith or therewith (the  "TRANSACTION  DOCUMENTS")  are within
Maker's powers and have been duly authorized by all necessary  corporate and, if
required,  stockholder action. The Transaction Documents have been duly executed
and  delivered  by  Maker  and  each  constitutes  a legal,  valid  and  binding
obligation of Maker  enforceable in accordance with its terms,  except as may be
limited by applicable  bankruptcy,  insolvency,  reorganization,  moratorium and
other similar laws affecting the enforcement of creditors'  rights generally and
general equity  principles  (whether  considered in a proceeding in equity or at
law).

            (c)  CAPITALIZATION.  The  capitalization  of the  Company is as set
forth  SCHEDULE  5(C)  attached  hereto.  Except as set forth on  SCHEDULE  5(A)
attached  hereto,  the Company does not have any subsidiaries or own directly or
indirectly any of the capital stock or other equity or long-term debt securities
of or have any  equity  interest  in any other  person;  all of the  outstanding
shares of  capital  stock of the  Company  and the  Subsidiaries  have been duly
authorized and validly  issued,  are fully paid and  nonassessable  and were not
issued in violation of any  preemptive or similar  rights and are owned free and
clear of all liens, encumbrances,  equities, and restrictions on transferability
(other than those  imposed by the  Securities  Act and the state  securities  or
"Blue Sky" laws) or voting.  All of the  outstanding  shares of capital stock of
the Subsidiaries are owned,  directly or indirectly,  by the Company.  Except as
set forth on SCHEDULE 5(C) attached hereto, no options, warrants or other rights
to purchase from the Company or any Subsidiary,  agreements or other obligations
of the  Company  or any  Subsidiary  to issue or other  rights  to  convert  any
obligation  into, or exchange any securities  for, shares of capital stock of or
ownership interests in the Company or any Subsidiary are outstanding.  Except as
set forth on SCHEDULE 5(C), there is no agreement,  understanding or arrangement
among the Company or any Subsidiary and each of their respective stockholders or
any other person  relating to the ownership or  disposition of any capital stock
of the Company or any  Subsidiary or the election of directors of the Company or
any Subsidiary or the governance of the Company's or any  Subsidiary's  affairs,
and,  if any,  such  agreements,  understandings  and  arrangements  will not be
breached  or  violated  as a result of the  execution  and  delivery  of, or the
consummation of the transactions contemplated by, the Transaction Documents.

<PAGE>

            (d) NO  CONSENTS.  The  execution  and  delivery of the  Transaction
Documents and the issuance of the equity  securities  underlying such securities
(i) does not require any consent or approval of, registration or filing with, or
any other  action by any  governmental  authority,  (ii)  will not  violate  any
applicable law or regulation  applicable to Maker or any of its  subsidiaries or
the articles of  incorporation or bylaws of Maker or other agreement of Maker or
any of its subsidiaries or any order of any governmental authority applicable to
Maker or any of its subsidiaries,  (iii) will not violate any agreement of Maker
or any of its  subsidiaries  or  result  in a default  under  any  agreement  or
instrument  evidencing  or  governing  any  indebtedness  of Maker or any of its
subsidiaries  or  assets of Maker or any of its  subsidiaries  or give rise to a
right  thereunder to require any payment to be made by Maker,  and (iv) will not
result in the creation or imposition of any lien on any asset of Maker or any of
its subsidiaries.

            (e)  SEC   REPORTS;   FINANCIAL   STATEMENTS;   SARBANES-OXLEY   ACT
COMPLIANCE.

            (i) Maker has filed all reports required to be filed by it under the
            Securities Act and the  Securities  Exchange Act of 1934, as amended
            (the "EXCHANGE ACT"), including pursuant to Section 13(a) or Section
            15(d) of the  ------------  Exchange  Act,  for the  three (3) years
            preceding  the date  hereof  (or such  shorter  period  as Maker was
            required by law to file such  material)  (the  foregoing  materials,
            including  the  exhibits  thereto,  being  collectively  referred to
            herein as the "SEC REPORTS").  As of their respective dates, the SEC
            Reports  -----------  complied  in all  material  respects  with the
            requirements  of the  Securities  Act and the  Exchange  Act and the
            rules and regulations of the Commission promulgated  thereunder,  as
            applicable,  and none of the SEC Reports, when filed,  contained any
            untrue  statement of a material  fact or omitted to state a material
            fact required to be stated therein or necessary in order to make the
            statements  therein,  in light of the circumstances under which they
            were made, not misleading.  The staff of the Division of Corporation
            Finance of the Commission has never provided Maker with any comments
            on any registration  statement,  report or other document filed with
            the  Commission  under the  Securities  Act or the Exchange Act. The
            financial  statements of Maker included in the SEC Reports comply in
            all material  respects with applicable  accounting  requirements and
            the rules and  regulations of the Commission with respect thereto as
            in effect at the time of filing. Such financial statements have been
            prepared in accordance with generally accepted accounting principles
            applied on a consistent basis during the periods involved  ("GAAP"),
            except as may be otherwise specified in such financial statements or
            the notes thereto and except that unaudited financial statements may
            not contain all footnotes  required by GAAP,  and fairly  present in
            all  material  respects  the  financial  position  of Maker  and its
            consolidated  subsidiaries  as of and for the dates  thereof and the
            results of  operations  and cash flows for the  periods  then ended,
            subject, in the case of unaudited statements, to normal, immaterial,
            year-end  audit  adjustments.  Kost,  Forer  &  Gabbay,  which  have
            certified certain financial statements of Maker and its consolidated
            subsidiaries  included in the SEC Reports,  are  independent  public
            accountants as required by the Securities  Act, the Exchange Act and
            the respective  rules and  regulations of the Commission  thereunder
            and are  registered  and in good  standing  with the Public  Company
            Accounting Oversight Board in accordance with the Sarbanes-Oxley Act
            of 2002. Maker is in compliance with all applicable  requirements of
            the  Sarbanes-Oxley Act of 2002 and applicable rules and regulations
            promulgated by the Commission thereunder in effect as of the date of
            this  Note,  except  where  the  failure  to be so would  not have a
            material  adverse  effect on the Maker.  Maker does not have pending
            before the  Commission  any request for  confidential  treatment  of
            information.  Notwithstanding  anything  contained  in this  Section
            5(e)(i)  to  the  contrary,  a  breach  of the  representations  and
            warranties  contained  in this Section  5(e)(i)  shall only occur if
            such breach has a material adverse effect on the Maker's performance
            of its obligations related to or in connection with this Note or the
            practical  realization  by the Payee of any benefit or remedy  Payee
            may have hereunder.

<PAGE>

            (ii) Attached hereto is a draft of the registration statement of the
            Maker on Form F-1 ("Draft F-1") which accurate, true and complete in
            all material respects and does not contain any untrue statement of a
            material fact or omit to state a material fact required to be stated
            therein or necessary  in order to make the  statements  therein,  in
            light  of  the  circumstances   under  which  they  were  made,  not
            misleading.  The financial statements of Maker included in the Draft
            F-1  comply in all  material  respects  with  applicable  accounting
            requirements  and the rules and  regulations of the Commission  with
            respect  thereto as in effect at the time of filing except where the
            failure to so comply does not have  material  adverse  effect on the
            Maker's  performance of its obligations  related to or in connection
            with  this  Note or the  practical  realization  by the Payee of any
            benefit  or  remedy  Payee  may  have   hereunder.   Such  financial
            statements have been prepared in accordance with GAAP, except as may
            be otherwise  specified in such  financial  statements  or the notes
            thereto  and except  that  unaudited  financial  statements  may not
            contain all footnotes  required by GAAP,  and fairly  present in all
            material   respects  the   financial   position  of  Maker  and  its
            consolidated  subsidiaries  as of and for the dates  thereof and the
            results of  operations  and cash flows for the  periods  then ended,
            subject, in the case of unaudited statements, to normal, immaterial,
            year-end audit adjustments.

            (f) MATERIAL  CHANGES.  Except as set forth on Schedule 5(f) hereto,
since the date of the latest audited  financial  statements  included within the
Draft F-1, (i) there has been no event,  occurrence or development  that has had
or that could  reasonably  be expected to result in a Material  Adverse  Effect,
(ii) Maker has not incurred any material  liabilities  (contingent or otherwise)
other than (A) trade  payables  and accrued  expenses  incurred in the  ordinary
course  of  business  consistent  with past  practice  and (B)  liabilities  not
required to be reflected  in Maker's  financial  statements  pursuant to GAAP or
required to be disclosed in filings  made with the  Commission,  (iii) Maker has
not altered its method of  accounting,  (iv) Maker has not  declared or made any
dividend  or  distribution  of cash or other  property  to its holders of Common
Stock or  purchased,  redeemed or made any  agreements to purchase or redeem any
shares of its capital  stock and (v) Maker has not issued any equity  securities
to any officer, director or affiliate, except pursuant to existing Company stock
option plans. For purposes herein, a "MATERIAL  ADVERSE EFFECT" shall mean (i) a
material  adverse  effect on the  legality,  validity or  enforceability  of any
Transaction  Documents,  (ii)  a  material  adverse  effect  on the  results  of
operations,  assets,  business or financial  condition or prospects of Maker and
the  Subsidiaries,  taken as a whole,  or (iii) a  material  adverse  effect  on
Maker's  ability  to  perform  in any  material  respect  on a timely  basis its
obligations under this Note.

<PAGE>

            (g) LITIGATION.  Except as set forth on Schedule 5(g) hereto,  there
is no action,  suit, inquiry,  notice of violation,  proceeding or investigation
pending or, to the knowledge of Maker,  threatened  against or affecting  Maker,
any  Subsidiary or any of their  respective  properties  before or by any court,
arbitrator,  governmental or administrative  agency and/or regulatory  authority
(federal,  state, county, local or foreign),  including, but not limited to, the
Commission or any State Attorney General  (collectively,  an "ACTION") which (i)
adversely  affects or  challenges  or could  adversely  affect or challenge  the
legality, validity or enforceability of any of the Transaction Documents or (ii)
could, if there were an unfavorable decision,  have or reasonably be expected to
result in a Material Adverse Effect.  Neither Maker nor any Subsidiary,  nor, to
the knowledge of Maker, any current director or officer thereof,  is or has been
the subject of any Action  involving a claim of violation of or liability  under
federal or state  securities laws or a claim of breach of fiduciary duty.  There
is not pending or, to the knowledge of Maker, contemplated, any investigation by
the Commission  and/or other entity involving Maker or any current  directors or
officers of Maker.  The  Commission has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by Maker or any
Subsidiary under the Exchange Act or the Securities Act.

            (h) LABOR  RELATIONS.  No material  labor dispute  exists or, to the
knowledge of Maker,  is imminent  with respect to any of the  employees of Maker
which could reasonably be expected to result in a Material Adverse Effect.

            (i) COMPLIANCE. Except as set forth in Schedule 5(i) hereto, neither
Maker nor any  Subsidiary  (a) is in default  under or in  violation  of (and no
event has occurred  that has not been waived that,  with notice or lapse of time
or both,  would result in a default by Maker or any Subsidiary  under),  nor has
Maker or any Subsidiary  received  notice of a claim that it is in default under
or that it is in violation of, any  indenture,  loan or credit  agreement or any
other  agreement or  instrument  to which it is a party or by which it or any of
its  properties  is bound  (whether or not such  default or  violation  has been
waived),  (b)  is in  violation  of  any  order  of  any  court,  arbitrator  or
governmental  body,  or (c) is or has been in violation of any statute,  rule or
regulation of any  governmental  authority,  including  without  limitation  all
foreign, federal, state and local laws applicable to its business, except in the
case of  clauses  (a),  (b) and (c) as would not  result in a  Material  Adverse
Effect.

            (j)  REGULATORY  PERMITS.  Maker and the  Subsidiaries  possess  all
certificates,  authorizations  and permits  issued by the  appropriate  federal,
state,  local or foreign  regulatory  authorities  necessary  to  conduct  their
respective  businesses,  except where the failure to possess such permits  would
not have or  reasonably  be  expected  to result in a  Material  Adverse  Effect
("MATERIAL  PERMITS"),  and neither  Maker nor any  Subsidiary  has received any
notice of proceedings relating to the revocation or modification of any Material
Permit.

            (k) TITLE TO ASSETS.  All property and assets owned by the Maker and
the  Subsidiaries  are  owned  outright  free and clear of  mortgages,  pledges,
security interests, liens, charges and other encumbrances,  except for (i) liens
for current taxes not yet due, (ii) minor  imperfections  of title,  if any, not
material in amount and not materially detracting from the value or impairing the
use of the property  subject thereto or impairing the operations of the Maker or
(iii) set forth on SCHEDULE 5(K) hereto.

<PAGE>

            (l) INTELLECTUAL PROPERTY RIGHTS.

                  (i) Maker and its Subsidiaries own, or possess adequate rights
            or licenses to use all  trademarks,  trademark  applications,  trade
            names,  service marks,  service mark  registrations,  service names,
            patents, patent applications,  patent rights, copyrights,  copyright
            applications, inventions, licenses, permits, approvals, governmental
            authorizations,   know-how   (including   trade  secrets  and  other
            unpatented   and/or   unpatentable   proprietary  and   confidential
            information,  systems or procedures) and other intellectual property
            rights (collectively,  "INTELLECTUAL  PROPERTY RIGHTS") necessary to
            conduct their respective  businesses as now conducted or proposed to
            be conducted.  Maker's  Intellectual  Property  Rights are valid and
            enforceable,  and  no  registration  relating  thereto  has  lapsed,
            expired  or  been  abandoned  or  cancelled  or is  the  subject  of
            cancellation  or other  adversarial  proceedings,  or is expected to
            expire or terminate within two years from the date of this Note, and
            all  applications  therefor are pending and in good standing.  Maker
            and its  Subsidiaries do not have any knowledge of any  infringement
            by Maker or its  Subsidiaries  of  Intellectual  Property  Rights of
            others,  or of any such  development  of similar or identical  trade
            secrets or technical  information by others and no claim,  action or
            proceeding  has  been  made  or  brought  against,   or  to  Maker's
            knowledge,  has been threatened  against,  Maker or its Subsidiaries
            regarding   infringement  of  Intellectual   Property  Rights.   All
            personnel, including employees, agents, consultants and contractors,
            who  have  contributed  to or  participated  in the  conception  and
            development of Maker's Intellectual  Property Rights have either (a)
            been a party to a "work  for hire"  arrangement  or  agreement  with
            Maker or a Subsidiary, in accordance with federal or state law, that
            by its  terms  accords  to Maker or a  Subsidiary  ownership  of all
            tangible  or  intangible  property  thereby  arising,  or  (b)  have
            executed appropriate  instruments of assignment in favor of Maker or
            a Subsidiary as assignee that by their terms validly convey to Maker
            or a  Subsidiary  complete  and sole  ownership  of all tangible and
            intangible property thereby arising,  and Maker and its Subsidiaries
            have  taken  other  reasonable  security  measures  to  protect  the
            secrecy,  confidentiality  and  value of all of  their  Intellectual
            Property Rights.

                  (ii) Neither  Maker nor any  Subsidiary is in default under or
            in violation of (and no event has occurred  that has not been waived
            that,  with  notice  or  lapse of time or both,  would  result  in a
            default  by Maker or any  Subsidiary  under),  nor has  Maker or any
            Subsidiary received notice of a claim that it is in default under or
            that it is in  violation  of, any license  agreement,  collaboration
            agreement,  development  agreement or similar agreement  relating to
            their respective businesses.

            (m) TRANSACTIONS WITH AFFILIATES AND EMPLOYEES.  Except as set forth
on SCHEDULE 5(M), none of the officers,  directors,  employees and/or affiliates
of Maker or the  Subsidiaries  is a party to any  transaction  with Maker or any
Subsidiary  (other than for  services as  employees,  officers  and  directors),
including  any  contract,  agreement  or  other  arrangement  providing  for the
furnishing  of  services  to or by,  providing  for  rental of real or  personal
property to or from,  or  otherwise  requiring  payments to or from any officer,
director employee or such affiliate or, to the knowledge of Maker, any entity in
which any officer,  director, or any such employee has a substantial interest or
is an  officer,  director,  trustee,  partner  or  affiliate  other than (a) for
payment of salary or consulting fees for services  rendered,  (b)  reimbursement
for expenses  incurred on behalf of Maker and (c) for other  employee  benefits,
including stock option agreements under any stock option plan of Maker, which in
the  aggregate  (for the total  amount in (a),  (b) and (c)  combined)  does not
exceed the amount of $5,000 for any officer, director, employee or affiliate.

<PAGE>

            (n)  DISCLOSURE   CONTROLS  AND  PROCEDURES;   INTERNAL   ACCOUNTING
CONTROLS.  The  management  of Maker has (i)  designed  disclosure  controls and
procedures to ensure that material information relating to Maker,  including its
Subsidiaries,  is made known to the  management  of Maker by others within those
entities,  and (ii) has  disclosed,  based on its  most  recent  evaluation,  to
Maker's  outside  auditors and the audit committee of the Board of Directors (A)
any  significant  deficiencies  in the design or operation of internal  controls
which could adversely affect Maker's ability to record,  process,  summarize and
report  financial  data and have  identified  for Maker's  outside  auditors any
material  weaknesses  in  internal  controls  and (B) any fraud,  whether or not
material,  that involves  management  or other  employees who have a significant
role in Maker's internal controls.  Maker and each of its Subsidiaries maintains
a system of  internal  accounting  controls  sufficient  to  provide  reasonable
assurance that (i)  transactions  are executed in accordance  with  management's
general or specific authorizations,  (ii) transactions are recorded as necessary
to permit  preparation  of financial  statements in conformity  with GAAP and to
maintain  asset  accountability,  (iii)  access to assets is  permitted  only in
accordance  with  management's  general or specific  authorization  and (iv) the
recorded  accountability  for assets is  compared  with the  existing  assets at
reasonable  intervals  and  appropriate  action  is taken  with  respect  to any
differences.

            (o)  LISTING  AND  MAINTENANCE  REQUIREMENTS.  Maker is,  and has no
reason to believe that it will not in the foreseeable  future continue to be, in
compliance with all listing and  maintenance  requirements of the trading market
on which the Common Stock is traded.

            (p) TAX STATUS. Maker and each of its Subsidiaries has made or filed
all foreign,  federal and state  income and all other tax  returns,  reports and
declarations  required by any jurisdiction to which it is subject,  and has paid
all taxes and other  governmental  assessments  and charges that are material in
amount, shown or determined to be due on such returns,  reports and declarations
or to Maker's knowledge otherwise due and payable,  except those being contested
in good faith and has set aside on its books  reserves in  accordance  with GAAP
reasonably  adequate for the payment of all taxes for periods  subsequent to the
periods  to which such  returns,  reports or  declarations  apply.  There are no
unpaid taxes in any material amount claimed to be due by the taxing authority of
any jurisdiction, and the officers of Maker know of no basis for any such claim.

            (q) RIGHT OF FIRST REFUSAL; ANTI-DILUTION RIGHT. Except as set forth
on  Schedule  5(q),  no  person  is  a  party  to  any  agreement,  contract  or
understanding,  written  or oral  entitling  such  party to (i) a right of first
refusal or (ii) purchase or otherwise  receive any  securities of Maker,  at any
time, in each case with respect to offerings of securities by Maker.

<PAGE>

            (r) INSURANCE. Each of Maker and its Subsidiaries maintain insurance
of the types and in the amounts deemed adequate for its business, including, but
not  limited  to,  product  liability  insurance,  insurance  covering  real and
personal  property owned or leased by Maker and its subsidiaries  against theft,
damage,  destruction,  acts of vandalism and all other risks customarily insured
against, all of which insurance is in full force and effect.

            (s)  ENVIRONMENTAL.  Maker and each of its  Subsidiaries  is, to the
best of its knowledge,  in compliance  with all applicable  published  rules and
regulations  (and applicable  standards and  requirements)  of the United States
Environmental  Protection Agency (the "EPA") and of any similar foreign or state
agency.  There is no suit,  claim,  action or proceeding  now pending before any
court,  governmental  agency or board,  or other  forum,  nor is any of the same
threatened by any Person;  and, there is no fact or circumstance  actually known
to Maker  which could  reasonably  be  anticipated  to be the basis for any such
suit,  claim,  action or  proceeding,  for (i)  noncompliance  by Maker with any
environmental  law,  rule,  regulation or  requirement,  or (ii) relating to the
release or threatened  release into the  environment  by Maker of any pollutant,
toxic or hazardous  material,  oil, or waste  generated by Maker.  Maker has not
released any Hazardous  Materials (as hereinafter  defined) at any site owned or
leased by Maker or shipped any  Hazardous  Materials for  treatment,  storage or
disposal  at any other site of  facility.  For  purposes of this  SECTION  5(S),
"HAZARDOUS  MATERIALS"  shall mean and  include  any solid,  hazardous  or toxic
waste,   substance  or  material  as  defined  in  the  United  States  Resource
Conservation and Recovery Act; the Clean Air Act; the Clean Water Act; the Toxic
Substances Control Act; the Comprehensive  Environmental Response,  Compensation
and Liability Act;  applicable  foreign and state laws for the protection of the
environment, and the regulations promulgated under any of the foregoing.

            (t)  CONDUCT  OF  BUSINESS.  Except  as set forth on  Schedule  5(t)
hereto,  since  December  31,  2003,  Maker  has not  (a)  incurred  any  debts,
obligations or liabilities,  absolute, accrued, contingent or otherwise, whether
due or to become  due,  except  current  liabilities  incurred  in the usual and
ordinary  course of  business,  having a Material  Adverse  Effect,  (b) made or
suffered  any  changes  in  its  contingent  obligations  by  way  of  guaranty,
endorsement  (other than the  endorsement of checks for deposit in the usual and
ordinary course of business),  indemnity,  warranty or otherwise, (c) discharged
or satisfied  any liens other than those  securing,  or paid any  obligation  or
liability other than, current liabilities shown on the balance sheet dated as at
December  31,  2003,  and  forming  part  of  the  SEC  Documents,  and  current
liabilities  incurred  since  December 31,  2003,  in each case in the usual and
ordinary course of business, (d) mortgaged,  pledged or subjected to lien any of
its assets,  tangible or intangible,  (e) sold, transferred or leased any of its
assets  except in the usual and ordinary  course of business,  (f)  cancelled or
compromised  any debt or claim,  or waived or  released  any right,  of material
value,  (g) suffered any physical  damage,  destruction  or loss (whether or not
covered by insurance)  adversely  affecting the properties or business of Maker,
(h) entered into any transaction  other than in the usual and ordinary course of
business except for this Note and the related agreements referred to herein, (i)
encountered any labor  difficulties or labor union  organizing  activities,  (j)
made or  granted  any wage or salary  increase  or entered  into any  employment
agreement, (k) issued or sold any shares of capital stock or other securities or
granted any options with  respect  thereto,  or modified any equity  security of
Maker,  (l) declared or paid any  dividends  on or made any other  distributions
with  respect  to, or  purchased  or  redeemed,  any of its  outstanding  equity
securities,  (m) suffered or experienced any change in, or condition  affecting,
its  condition  (financial  or  otherwise),   properties,  assets,  liabilities,
business  operations  or results of  operations  other than  changes,  events or
conditions in the usual and ordinary  course of its business,  having (either by
itself or in conjunction  with all such other changes,  events and conditions) a
Material  Adverse  Effect,  (n) made any  change in the  accounting  principles,
methods or practices followed by it or depreciation or amortization  policies or
rates  theretofore  adopted,  or (o) entered  into any  agreement  or  otherwise
obligated itself, to do any of the foregoing.

<PAGE>

            (u)  CONVERSION  SECURITIES.  The equity  securities  issuable  upon
conversion  of this  Note  and the  exercise  of the  Warrant,  when  issued  in
compliance  with the  provisions of this Note  (assuming the holder of this Note
converts this Note into equity securities) or the Warrant,  as applicable,  will
be duly authorized and validly issued, fully paid and nonassessable, and will be
free of any liens or encumbrances created by Maker.

            (v)  REGISTRATION.  The  execution,  issuance  or  delivery  of  the
Transaction  Documents or the issuance and sale of the  securities  of the Maker
issuable upon conversion of the Notes will be exempt from registration under the
Securities Act.

      6. COVENANTS.

            (a) Until the  latter to occur of: (A) the one year  anniversary  of
the date of  execution of this Note or (B) the date on which this Note no longer
is outstanding,

            (i) MAINTAINING PROPERTIES,  ASSETS. Maker shall reasonably maintain
in good repair, working order and condition its properties and other assets, and
those of any  Subsidiary,  and from time to time make all  reasonably  necessary
repairs, renewals and replacements thereto.

            (ii) NO  TRANSFER OF  INTELLECTUAL  PROPERTY.  Maker shall not,  and
shall not permit any of its  Subsidiaries,  to transfer any of its  Intellectual
Property  Rights to any affiliate or third party without the written  consent of
Payee.  For  avoidance  of doubt,  Maker shall not be  restricted  from  selling
products and/or non exclusive licenses based on its Intellectual Property in the
Maker's ordinary course of business and consistent with past practice.

            (iii)  LIENS.  Maker  shall  not,  and shall not  permit  any of its
Subsidiaries to, create, incur or suffer to exist any security interests, liens,
claims or encumbrances  ("Liens") upon any of its or its Subsidiaries' assets or
properties,   except  for  (i)  Liens  created  by  operation  of  law  such  as
materialmen's  liens,  mechanic's liens and other similar Liens;  (ii) deposits,
pledges  or  Liens  securing   obligations   incurred  in  respect  of  workers'
compensation, unemployment insurance or other forms of governmental insurance or
benefits;   (iii)  Liens  imposed  by  any  governmental  authority  for  taxes,
assessments or charges not yet due or that are being  contested in good faith by
appropriate  proceedings  with the  establishment  of  adequate  reserves on the
balance sheet of Maker;  or (iv) Liens in existence as of the date hereof as set
forth on Schedule 6(c) hereto (collectively, the "Permitted Liens").

<PAGE>

            (iv) EXTRAORDINARY  ACTIONS. The Maker shall not nor shall it permit
any  Subsidiary  to: (i) make or approve  any changes in  accounting  methods or
policies  (other  than as  required by GAAP),  (ii) incur any  indebtedness  for
borrowed  money,  unless payment of such  indebtedness  is  subordinated  to the
payment of this Note  pursuant to a  subordination  agreement to be entered into
which shall be  satisfactory  to Payee,  (iii) sell or  otherwise  transfer  any
material  assets  or  rights  of the  Maker or a  Subsidiary  or enter  into any
contract  or  agreement  relating  to the sale of  assets,  (iv)  enter into any
contract,  agreement or transaction with any officer,  director,  stockholder or
affiliate of the Maker or a Subsidiary  other than ordinary course  transactions
that are  consistent  with past practice and pursuant to arms length terms,  (v)
directly  or  indirectly  pay or declare any  dividend or make any  distribution
upon, redeem,  retire or repurchase or otherwise acquire,  any shares of capital
stock or other securities of the Maker or a Subsidiary,  (vi) acquire or dispose
(whether in a single transaction or series of transactions) any business (or any
material part of any  business) or any shares or interests in any  subsidiary of
Maker (except for  transactions in which the  consideration  (including  assumed
debt) does not exceed in the  aggregate  on an annual basis more than 20% of the
Maker's total assets measured at the beginning of each fiscal year), (vii) enter
into any  partnership,  joint  venture or merger with any other person or party,
(viii)  incur a capital  expenditure  in excess of $20,000  (except  for capital
expenditures  that are required to be made by the Maker  pursuant to  agreements
that are in effect as of the date hereof) or (ix) materially  change the Maker's
line of business as currently conducted.

            (b) For so  long  as  this  Note,  the  Warrant  or any  Registrable
Securities remain outstanding,

            (i) NON-PUBLIC INFORMATION.  Maker covenants and agrees that neither
it nor any other person acting on its behalf will provide Payee or its agents or
counsel with any information that Maker believes constitutes material non-public
information,  and, in any event,  Maker hereby  agrees that Payee shall not have
any duty of  confidentiality  or any other  obligation  with respect to any such
information if any such disclosure occurs,  subject to such Payee complying with
all applicable securities laws.

            (ii) FORM D AND BLUE SKY.  If  required,  Maker  shall file a Form D
with  respect to the  issuance of the Notes (or the  issuance of Common Stock or
other  equity  securities  upon  conversion  of this  Note)  as  required  under
Regulation D under the Securities Act and, upon written request,  provide a copy
thereof to Payee  promptly  after such  filing.  Maker shall take such action as
Maker shall  reasonably  determine  is necessary in order to obtain an exemption
for or to  qualify  the Note for sale to  Payee  pursuant  to this  Note (or the
issuance of Common  Stock or other equity  securities  upon  conversion  of this
Note) under applicable securities or "Blue Sky" laws of the states of the United
States, and shall provide evidence of any such action so taken to Payee promptly
after such filing.

            (iii) RESERVATION OF COMMON STOCK. As of the date hereof,  Maker has
reserved  and Maker shall  continue to reserve and keep  available at all times,
free of preemptive rights, a sufficient number of shares of Common Stock for the
purpose of enabling  Maker to issue the Shares upon  conversion of this Note and
the full exercise of the Warrant.

            (iv) LISTING OF COMMON  STOCK.  Maker hereby  agrees to maintain the
listing and trading of the Common Stock on its current  trading  market,  and to
file with the  trading  market  to list the  applicable  shares of Common  Stock
issuable in connection herewith on the trading market.  Maker further agrees, if
Maker  applies to have the Common Stock traded on any other trading  market,  it
will  include  in such  application  the  shares of  Common  Stock  issuable  in
connection herewith and will take such other action as is necessary or desirable
in the opinion of Payee to cause such shares to be listed on such other  trading
market as promptly as possible. Maker will take all action necessary to continue
the listing and trading of its Common  Stock on its current  trading  market and
will comply in all material  respects with Maker's  reporting,  filing and other
obligations under the bylaws or rules of the trading market.

<PAGE>

            (v) FURNISHING OF INFORMATION.  Maker covenants and agrees to timely
file (or obtain  extensions  in respect  thereof and file within the  applicable
grace  period) all  reports  required to be filed by Maker after the date hereof
pursuant to the Exchange  Act.  Until the later of the date Payee no longer owns
this Note, the Warrant or any Registrable  Securities,  if Maker is not required
to file  reports  pursuant to the  Exchange  Act, it will prepare and furnish to
Payee  and  make  publicly   available  in  accordance  with  Rule  144(c)  such
information  as is required  for Payee to sell its shares of Common  Stock under
Rule 144.  Maker  further  covenants  and agrees that it will take such  further
action as Payee may reasonably request,  all to the extent required from time to
time  to  enable  such  person  to sell  any  shares  of  Common  Stock  without
registration  under the  Securities  Act within the limitation of the exemptions
provided by Rule 144.

            (vi) SHAREHOLDERS  RIGHTS PLAN. No claim will be made or enforced by
Maker  or any  other  person  that  Payee is an  "Acquiring  Person"  under  any
shareholders  rights plan or similar plan or  arrangement in effect or hereafter
adopted by Maker, or that Payee could be deemed to trigger the provisions of any
such plan or arrangement,  by virtue of receiving  Registrable  Securities under
this Note or under any other agreement between Maker and Payee.  (vii) REPORTING
OBLIGATIONS.  Maker shall  continue to file or furnish  pursuant to the Exchange
Act or the  Securities  Act, and Maker shall use  commercially  reasonable  best
efforts to maintain its status as an issuer  required to file such reports under
the  Exchange  Act.  In  addition,  Maker shall take all  actions  necessary  to
continue  to meet the  "registrant  eligibility"  requirements  set forth in the
general  instructions to Form SB-2 or any successor form thereto, to continue to
be eligible to register  the resale of the Shares  under the  Securities  Act on
such Form.

      7. EVENTS OF DEFAULT. The following are "EVENTS OF DEFAULT" hereunder:

            (a) any  failure  by Maker to pay when due all or any  principal  or
accrued interest hereunder;

            (b) any  representation or warranty made by or on behalf of Maker in
this Note or the Warrant proves to have been  incorrect,  false or misleading in
any material respect on the date of which made;

            (c) any failure by Maker to perform any covenant or agreement  under
this Note, the Security Agreements, the Warrant or any other agreement, document
or  instrument  contemplated  hereby or thereby and such  failure  shall  remain
uncured for a period of five (5) days after  receipt by Maker of written  notice
of such failure from Payee;

            (d) if Maker or any  subsidiary  of Maker  shall  (i)  apply  for or
consent to the  appointment of a receiver,  trustee,  custodian or liquidator or
any of its  property,  (ii) admit in writing its  inability  to pay its debts as
they mature, (iii) make a general assignment for the benefit of creditors,  (iv)
be  adjudicated  bankrupt or  insolvent or be the subject of an order for relief
under  Title 11 of the  United  States  Bankruptcy  Code,  (v) file a  voluntary
petition in bankruptcy or a petition for bankruptcy, reorganization, insolvency,
readjustment  of debt,  dissolution or liquidation,  or an answer  admitting the
material  allegations of a petition filed against it in any proceeding under any
such law and such petition or proceeding  shall remain  undismissed  or unstayed
for  thirty  (30)  days,  or (vi)  take or  permit  to be taken  any  action  in
furtherance of or for the purpose of effecting any of the foregoing;

<PAGE>

            (e) any  dissolution,  liquidation  or  winding  up of  Maker or any
substantial portion of its business;

            (f) any  cessation  of  operations  by Maker  or Maker is  otherwise
generally unable to pay its debts as such debts become due;

            (g) the  failure  by Maker to  maintain  any  material  Intellectual
Property Rights,  personal, real property or other assets which are necessary to
conduct its business (whether now or in the future);

            (h) the merger,  consolidation  or  reorganization  of Maker with or
into  another  corporation  or  person  or  entity  (other  than  with or into a
wholly-owned subsidiary),  or the sale of capital stock of Maker by Maker or the
holders  thereof,  in any case  under  circumstances  in which the  holders of a
majority  of the  voting  power  of  the  outstanding  capital  stock  of  Maker
immediately  prior to such transaction  shall own less than a majority in voting
power of the  outstanding  capital  stock of Maker or the surviving or resulting
corporation  or other entity,  as the case may be,  immediately  following  such
transaction.

            (i) if a default with respect to payment of  indebtedness of $20,000
or more  occurs  under any other loan  agreement,  note or other  instrument  or
evidence of indebtedness of Maker or its  subsidiaries  and continues beyond any
applicable grace period therein provided; or

            (j) final,  non-appealable judgments for the payment of money, which
judgments in the aggregate  exceed $20,000,  shall be rendered  against Maker or
its subsidiaries by a court of competent jurisdiction.

provided,  however,  that with respect to any Event of Default (other than under
Section 7(a) (with respect to payment of principal),  7(d),  7(e) or 7(h)),  the
Maker shall give the Payee written notice of any such event (within  forty-eight
(48) hours of its occurrence) and, upon giving such notice, the Maker shall have
ten (10)  business  days to cure such Event of Default;  in the event that Maker
fails to give written  notice of the  occurrence of such event,  the Maker shall
have no  opportunity  to cure such default  (unless  separately  consented to by
Payee);  provided,  further  however with respect to any Event of Default  under
Section 7(a) (with respect to payment of  principal),  7(d),  7(e) or 7(h),  the
Maker shall give the Payee notice  immediately  upon such  occurrence  and there
shall be no opportunity to cure such default.

      8.  REMEDIES  ON  DEFAULT.  If any  Event of  Default  shall  occur and be
continuing,  then the entire  principal and all accrued interest under this Note
shall,  at the option of Payee  (except in the case of an Event of Default under
SECTION 7(D) or 7(E) above,  in which event  acceleration  shall be  automatic),
become  immediately due and payable,  without notice or demand.  Notwithstanding
anything  contained  herein to the contrary,  upon an Event of Default:  (a) all
outstanding  principal  shall  be  repaid  at a  premium  equal  to  120% of the
outstanding  principal  balance  and (b) for  each 30 day  period  (or  fraction
thereof)  commencing on the  occurrence of an Event of Default and ending on the
date on which all amounts  due under this Note are paid back in full,  the Maker
shall issue to the Payee  shares of Common  Stock having a value equal to $2,500
(based on a price per share equal to the then  current  Conversion  Price) (such
premium and issuance of shares shall be considered as liquidated damages and not
as a penalty and shall be in addition to and not in lieu of any  interest,  late
fees, penalties or other amounts due hereunder).

<PAGE>

      9. SENIORITY.  The payment of this Note shall be senior to all obligations
of Maker,  whether now existing or  hereinafter  incurred,  other than those set
forth on SCHEDULE 9(A) hereto.

      10.  USE OF  PROCEEDS.  Maker  covenants  and  agrees  that all of the net
proceeds  that it  receives  from the sale of the Notes,  although  distributed,
allocated  and  expended  by  Maker in its  sole  discretion,  shall be used for
working capital and general corporate purposes.

      11. CERTAIN WAIVERS.  Except as otherwise expressly provided in this Note,
Maker  hereby  waives  diligence,  demand,  presentment  for  payment,  protest,
dishonor, nonpayment, default and notice of any and all of the foregoing.

      12. NO  IMPAIRMENT.  Maker  will not,  by  amendment  of its  articles  of
incorporation,   bylaws,  or  through  reorganization,   consolidation,  merger,
dissolution, sale of assets, or another voluntary action, avoid or seek to avoid
the  observance or performance of any of the terms of this Note, but will at all
times in good  faith  assist in the  carrying  out of all such  terms and in the
taking of all such action as may be necessary or appropriate in order to protect
the rights of Payee against impairment.

      13.  AMENDMENTS.  This  Note  may not be  changed  orally,  but only by an
agreement  in writing and signed by the party  against whom  enforcement  of any
waiver, change, modification or discharge is sought.

      14. GOVERNING LAW; JURISDICTION;  WAIVER OF JURY TRIAL. THIS NOTE SHALL BE
DEEMED TO BE A  CONTRACT  MADE UNDER THE LAWS OF THE STATE OF NEW YORK AND SHALL
BE GOVERNED BY AND  CONSTRUED  IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF NEW
YORK; PROVIDED HOWEVER, AT PAYEE's SOLE ELECTION, THE ENFORCEMENT OF THE MAKER'S
OBLIGATIONS  HEREUNDER  WITH RESPECT TO ASSETS LOCATED IN ISRAEL MAY BE GOVERNED
BY AND  CONSTRUED  IN  ACCORDANCE  WITH THE LAWS OF THE STATE OF  ISRAEL.  MAKER
HEREBY IRREVOCABLY AND UNCONDITIONALLY  SUBMITS, FOR ITSELF AND ITS PROPERTY, TO
THE  NONEXCLUSIVE  JURISDICTION  OF THE  SUPREME  COURT OF THE STATE OF NEW YORK
SITTING  IN NEW YORK  COUNTY  AND OF THE  UNITED  STATES  DISTRICT  COURT OF THE
SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF,  IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE, OR FOR RECOGNITION
OR ENFORCEMENT OF ANY JUDGMENT  (EXCEPT FOR THE  ENFORCEMENT OF ANY JUDGEMENT IN
THE STATE OF ISRAEL WHICH THE MAKER  HEREBY  CONSENTS TO THE  JURISDICTION  OF A
COURT OF COMPETENT JURISDICTION IN THE STATE OF ISRAEL), AND EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY  AGREES THAT ALL CLAIMS IN RESPECT
OF ANY SUCH ACTION OR  PROCEEDING  MAY BE HEARD AND  DETERMINED IN SUCH NEW YORK
STATE OR, TO THE EXTENT PERMITTED BY LAW, IN SUCH FEDERAL COURT. NOTHING IN THIS
NOTE OR ANY OTHER LOAN  DOCUMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS NOTE
TO SERVE PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW.  MAKER HEREBY WAIVES THE
RIGHT  TO TRIAL BY JURY IN ANY  ACTION  OR  PROCEEDING  FOR THE  ENFORCEMENT  OR
COLLECTION OF THIS NOTE.

<PAGE>

      15. NOTICES.  All notices and communications shall be in writing and shall
be  delivered  by hand or  overnight  courier  service,  mailed by  certified or
registered mail or sent by telecopy, as follows:

                  If to Maker:             Technoprises Ltd.
                                           Raoul Wallenberg 12
                                           Ramat Hachayal, Tel Aviv 69719
                                           Israel
                                           Fax: 972-3-6444-207
                                           Attn: Adam Ofek
                  with a copy to:          Bach, Arad, Scharf & Co.
                                           2 Hashlom Road
                                           Tel-Aviv 67892
                                           Israel
                                           Fax: 011-972-356-25304
                                           Attn: Udi Arad

                  If to Payee:             Bridges & Pipes LLC
                                           c/o 830 Third Avenue, 14th Floor
                                           New York, New York 10022

      16.  TRANSACTION  AND  ENFORCEMENT  COSTS.  In the event that Payee shall,
after the  occurrence  and during the  continuance  of an Event of Default  (and
provided  that Payee  shall be  permitted,  at such time,  to enforce its rights
hereunder and retain  payments  received  hereunder),  turn this Note over to an
attorney for  collection,  Maker shall further be obligated to Payee for Payee's
reasonable  attorneys'  fees and  expenses  incurred  in  connection  with  such
collection as well as any other reasonable costs incurred by Payee in connection
with the collection of all amounts due hereunder.

      17. LOSS,  THEFT,  DESTRUCTION OR MUTILATION OF NOTE. Upon notice by Payee
to Maker of the loss,  theft,  destruction  or mutilation of this Note, and upon
surrender and  cancellation  of this Note, if mutilated,  Maker, as its expense,
will make and deliver a new note of like tenor, in lieu of this Note.

<PAGE>

      18.  SUCCESSORS AND ASSIGNS.  This Note and the  obligations and rights of
Maker  hereunder,  shall be binding upon and inure to the benefit of Maker,  the
holder of this Note, and their respective  successors and assigns.  This Note is
assignable by Payee to any other person or entity without the consent of Maker.

      19. SEVERABILITY.  In the event that any provision of this Note becomes or
is declared by a court of competent jurisdiction to be illegal, unenforceable or
void,  this Note will continue in full force and effect  without said  provision
and the parties  agree to replace such  provision  with a valid and  enforceable
provision that will achieve, to the extent possible, the economic,  business and
other purposes of such provisions;  provided, however, that no such severability
will be effective  against a party if it materially  and  adversely  changes the
economic benefits of this Note to such party.

      20.  FURTHER  ASSURANCES.  Maker and its agents shall each  cooperate with
Payee and use (or cause its agents to use) its best efforts to promptly (i) take
or cause  to be  taken  all  necessary  actions,  and do or cause to be done all
things  necessary,  proper or advisable  under this Note and applicable  laws to
consummate and make effective all transactions contemplated by this Note as soon
as  practicable  following  the request of Payee,  and (ii) obtain all approvals
required to be obtained from any third party  necessary,  proper or advisable to
the transactions contemplated by this Note.

      21. USURY. Notwithstanding any provision to the contrary contained in this
Note,  or any and all other  instruments  or  documents  executed in  connection
herewith,  Maker and Payee  intend that the  obligations  evidenced by this Note
conform  strictly to the applicable  usury laws from time to time in force.  If,
under any circumstances whatsoever, fulfillment of any provisions thereof or any
other document,  at the time  performance of such provisions shall be due, shall
involve  transcending the limit of validity prescribed by law, then, ipso facto,
the obligation to be fulfilled shall be reduced to the limit of such validity.

      22.  INDEMNITY.  Maker hereby  agrees to defend,  indemnify and hold Payee
harmless  from and  against  all  claims,  damages,  investigations,  judgments,
penalties,  costs and expenses (including attorneys' fees and court costs now or
hereafter  arising  from  the  aforesaid  enforcement  of this  clause)  arising
directly or  indirectly  from Maker or third  parties  with whom the Maker has a
contractual relationship,  from the use of the proceeds of this Note, or arising
directly or indirectly  from the violation of any rule,  regulation,  statute or
law,  whether such claims are asserted by any  governmental  entity or any other
person.

             [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

<PAGE>

            IN WITNESS WHEREOF,  Maker has duly caused this Note to be signed on
its behalf,  in its company  name and by its duly  authorized  officer as of the
date first set forth above.

                                TECHNOPRISES LTD.

                                By:
                                    -----------------------------------------
                                    Name:
                                    Title:

ACKNOWLEDGED BY:

BRIDGES & PIPES LLC

By:_______________________________
   Name:
   Title:

<PAGE>

                                  SCHEDULE 5(a)

                                  Subsidiaries

Entity                     Jurisdiction of Incorporation

<PAGE>

                                  SCHEDULE 5(c)

                                 Capitalization

<PAGE>

                                  SCHEDULE 5(k)

                               Secured Obligations

<PAGE>

                                  SCHEDULE 5(m)

                           Related Party Transactions

<PAGE>

                                   Schedule 9

<PAGE>

                                  SCHEDULE 6(c)

                                 Permitted Liens

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