Document:

AGENCY AGREEMENT

                                     BETWEEN

                         INSPECTORATE GRIFFITH USA, INC.

                                       AND

                          BARRINGER LABORATORIES, INC.

                           Monday, September 20, 1999

                                     THROUGH

                               September 20, 2002

<PAGE>

                               TERMS OF AGREEMENT

The following  terms apply to the  agreement  with  Inspectorate,  together with
Sections 1 through 4 that are attached:

Representative:          Barringer Laboratories, Inc.
Address:                 15000 West 6th Avenue, suite 300
                         Golden, Colorado, 80206

Telephone:               (303) 277-1687
Tix:
Fax:                     (303 277-1689

Inspectorate:            Inspectorate America Corporation
                         5050 Timber Creek
                         Houston, Texas 77017, USA

Telephone:               (713) 948-5104
Tix:                     170439
Fax:                     (713) 948-5174

Contracts                The   contracts   that  have  been   executed   by  the
                         Representative and listed in Exhibit A hereto, together
                         with  such  other  contracts   relating  to  analytical
                         services for the metals and minerals mining industry as
                         may from time to time be entered  into by  Inspectorate
                         as a result of a referral by the Representative.

Licensed Mark            See Exhibit B

Work:                    Defined in Section 2.1

Form of Agreement:       Section 1, General
                         Section 2, Work and Remuneration
                         Section 3, License
                         Section 4, Equipment and Employees

Contact:                 Andy  Roberts -- Vice  President  Metals  and  Minerals
                         Division

Remuneration to
Representative:          2.5%   commission   on   all   payments   received   by
                         Inspectorate from clients pursuant to the Contracts.

Duration of Agreement:   3 years from Date of Signing

<PAGE>

                                    SECTION 1

                                  GENERAL TERMS

 1.1   General Conditions

       1.1.1.  During   the  transfer  of  the  Representative's  contracts   to
               Inspectorate  the  Representative  shall  promote,  maintain  and
               safeguard the interests of Inspectorate.

       1.1.2.  The  Representative  confirms  that,  for  the  duration of  this
               Agreement,  it will not directly or  indirectly,  act for or hold
               any  interest  in, any  company or other  entity  which may be in
               competition  with  Inspectorate  within the  metals and  minerals
               testing business.

       1.1.3.  The  Representative  shall  fulfill  its duties  with such  care,
               diligence and skill as may be necessary to conduct  business in a
               professional manner.

       1.1.4.  Inspectorate    shall   provide   such    information   including
               publicity,   marketing  data,  technical  literature,   operating
               procedures and communication  plans, as it considers necessary or
               advisable  for the  Representative  to be able to  carry  out the
               Work.

       1.1.5.  The  Representative  shall  treat  all  information  (other  than
               public domain  information),  data and documentation  relating to
               Inspectorate or its affiliates as confidential  and maintain such
               information as confidential  both during and after termination or
               expiration of this Agreement. Following termination or expiration
               of this  Agreement  all such  information,  data,  equipment  and
               documentation   (including   copies)   shall   be   returned   to
               Inspectorate forthwith.

       1.1.6.  This  Agreement  represents  the  entire  agreement  between  the
               parties and supersedes any previous  agreement  between them. Any
               amendments  to this  Agreement  must be in writing  and signed by
               duly authorized representatives of both parties.

1.2    Various Conditions

       1.2.1.  Inspectorate  reserves  the  right to  audit  the  financial  and
               technical  books and data of the  Representative,  but such audit
               will  be  restricted  to  those  areas  of  the  Representative's
               business related to the Contracts.

       1.2.2.  Assignment  - Neither  party  shall  be  entitled to  transfer or
               assign any or all of its rights under this Agreement  without the
               prior written consent of the other party.

<PAGE>

       1.2.3.  Force Majeure - No failure  or omission by  either party to carry
               out or perform any of the terms or conditions  of this  Agreement
               shall,  except  in  relation  to  obligations  to  make  payments
               hereunder,  give rise to any claim  against the party in question
               or be deemed a breach of this  Agreement  if, and to extent that,
               such  failure or omission  arises from any cause  foreseeable  or
               not, reasonably beyond the control of that party.

1.3    Communications

       1.3.1.  Details for any  communication  or notice  to be sent  under this
               Agreement  in respect of either party are set out in the Terms of
               Agreement.

       1.3.2.  Such  communications  or  notices  shall  be   sent  by   prepaid
               registered mail, fax or telex.

       1.3.3.  Any change to  the details for  communication  or notice  for one
               party shall be notified to the other party without delay.

1.4    Duration and Provisions on Termination

       1.4.1.  This  Agreement  is valid for the  period  given in  the Terms of
               Agreement unless  terminated in accordance with this Agreement or
               with reason by either party by giving 30 (thirty) days' notice to
               the other party. Reason means serious breach of the terms of this
               Agreement,  such as  failure to pay  monies  owed,  breach of the
               license  arrangements set out in Section 3, gross negligence,  or
               other  matters  of  equal  gravity.  Failure  of a party  to give
               written notice of any other breach of a term or condition  hereof
               shall not constitute a waiver thereof

       1.4.2.  Notice to  terminate  having  been given by  one of the  parties,
               Inspectorate  shall set up a final statement  listing all current
               valid   Contracts,   work  in  progress  and  pending   projects,
               indicating  the amount of commission to which the  Representative
               shall still be entitled.

       1.4.3.  The final statement shall cover Contracts that

               -    Shall have been awarded  prior to the date of giving  notice
                    and  the  services  to  be  rendered  shall  have  not  been
                    completed at the date of expiration or  termination  of this
                    Agreement,

               -    Shall have been  entered into  following  the date of giving
                    notice and prior to the date of expiration or termination of
                    this Agreement.

<PAGE>

        1.4.4. The  Representative  shall confirm  its Agreement  with the final
               statement  within  30  (thirty)  days  after  receipt.   If  such
               confirmation shall not have been received by Inspectorate  within
               40 (forty) days of the date that the final  statement  shall have
               been  sent  by  Inspectorate,  then  the  Representative  will be
               considered as having agreed with the final statement.

        1.4.5. No  additional  commission  shall be  paid to the  Representative
               other than will be due in settlement of the final statement.

        1.4.6. All documentation,  equipment and unused stationery  furnished by
               Tnspectorate  under this  Agreement  shall remain the property of
               Inspectorate upon expiration or termination of the Agreement.

        1.4.7. In the  event of bankruptcy of either  party this Agreement shall
               automatically terminate.

1.5     Settlement of Disputes

        1.5.1. Any disputes  arising  between the  parties  in  connection  with
               this Agreement shall as far as reasonably  practicable be settled
               amicably between the parties.

        1.5.2. If  a  serious  attempt  to  settle  shall  fail  to  settle  any
               disputed  point  between the parties,  then the dispute  shall be
               referred to a three member  arbitration  panel in Houston,  Texas
               which will proceed in  accordance  with the rules of the American
               Arbitration Association.

        1.5.3. This  Agreement  shall  be  governed by  the laws of the State of
               Texas, USA.

1.6     Conduct of Additional Work

        1.6.1. In the  event that The  Representative  shall  receive  inquiries
               after the initial transfer of business he will respond quickly or
               forward such  inquiries to  Inspectorate  with a view to enabling
               Inspectorate to secure additional analytical test work.

1.7     Indemnification

        1.7.1. The Representative shall  indemnify and  hold Inspectorate,  each
               of its affiliates and each of its or their directors and officers
               harmless from any and all costs, claims, liabilities; expense and
               loss,  including  attorneys  fees and  costs,  (a)  caused by any
               breach by the Representative of this Agreement or (b) as a result
               of any breach by the  Representative  of any the Contracts or any
               acts or omissions of the  Representative  on or prior to the date
               hereof  This   obligation   shall   survive  the   expiration  or
               termination of this Agreement.

<PAGE>

        1.7.2. Inspectorate  shall indemnify and  hold the Representative,  each
               of its affiliates and each of its or their directors and officers
               harmless from any and all costs, claims, liabilities, expense and
               loss,  including  attorneys  fees and  costs,  (a)  caused by any
               breach by  Inspectorate  of this  Agreement or (b) as a result of
               any breach by  Inspectorate  of any the  Contracts or any acts or
               omissions of Inspectorate after the date hereof.  This obligation
               shall survive the expiration or termination of this Agreement.

1.8     Warranties

        1.8.1. The Representative  warrants  that it is  not in default,  or but
               for a  requirement  that notice be given or that a period of time
               elapse or both,  would be in default,  under any Contract and has
               no knowledge of any default in any  obligation to be performed by
               any other party to any Contract.

        1.8.2. Each  party  warrants  that (a)  it has all  requisite  corporate
               power and authority to enter into this  Agreement and perform its
               obligations  hereunder  and (b) this  Agreement  constitutes  the
               legal,  valid and binding obligation of that party enforceable in
               accordance with its terms.

                                    SECTION 2

                              WORK AND REMUNERATION

2.1     The Representative shall carry out the following (the "Work"):

        2.1.1. Use its best endeavors to assign the Contracts to Inspectorate.

        2.1.2. Provide  all reasonable  assistance  to  Inspectorate in order to
               ensure the  successful  performance  of any Contract  assigned to
               Inspectorate.

        2.1.3. Indicate  clearly in  all  correspondence  and dealings  relating
               directly  or  indirectly  to  the  Work  that  it  is  acting  as
               representative  for  Inspectorate.   In  no  event,  without  the
               previous   written   consent   of    Inspectorate,    shall   the
               Representative  enter into contracts,  accept orders or otherwise
               purpose to commit or pledge the authority of Inspectorate or give
               any promises, warranties or guarantees on behalf of Inspectorate.

        2.1.4. The Representative  shall not accept  any form of payment in cash
               or kind from the  other  parties  to the  Contracts  without  the
               previous  written  consent  of  Inspectorate.  Any  such  payment
               received by the  Representative  shall be promptly  forwarded  to
               Inspectorate.

<PAGE>

2.2     Remuneration

        2.2.1. In  consideration for  carrying out the Work, the  Representative
               shall be entitled to a commission  from  Inspectorate  based upon
               payments received by Inspectorate pursuant to the Contracts.  The
               conimission  is as set out in the Terms of Agreement.

        2.2.2. In  the event of  Inspectorate  joining a non-related third party
               consortium or a joint venture,  the Representative  shall receive
               commission  calculated  only on that portion of the  remuneration
               which will be received by  Inspectorate  pursuant to the relevant
               consortium or joint venture agreement.

2.3     Payments of Remuneration

        2.3.1. Remuneration  to  the  Representative  shall only  become payable
               upon  receipt of the payment by  Inspectorate  under the relevant
               Contract. Remuneration shall be paid to the Representative within
               15 days from such receipt.

        2.3.2. Inspectorate  shall furnish  the Representative  with a quarterly
               statement  covering the invoices  issued,  payments  received and
               remunerations earned in the preceding three months.

2.4     Expenses

        2.4.1. The  Representative   shall   bear  all   expenses  involved   in
               connection  with its  activities  unless  and  until a  different
               arrangement is made between the parties for any specific case.

                                    SECTION 3

                                     LICENSE

3.1  The Representative  grants  Inspectorate the non-exclusive right to use the
     Licensed Mark for  promotional  marketing and sales  activity in connection
     with Inspectorate's efforts to secure the Contracts.

3.2  The  grant of the  trademark  license  under  this  Agreement  is unique to
     Inspectorate,  and may not be transferred,  assigned or pledged in whole or
     in part by Inspectorate, and Inspectorate shall not have the right to grant
     any  sublicenses  in  connection  with the Licensed Mark to any third party
     other than an affiliate of Inspectorate.

<PAGE>

3.3  Upon  termination  of  this  Agreement,   Inspectorate   shall  immediately
     discontinue all use of the Licensed Mark, and any term confusingly  similar
     thereto, shall destroy all printed materials bearing the Licensed Mark, and
     shall take such other  actions as shall be necessary or advisable to ensure
     that all rights in the  Licensed  Mark and the goodwill  connected  with it
     shall remain the property of the Representative.
                                    SECTION 4

                             EQUIPMENT AND EMPLOYEES

4.1  Inspectorate  may purchase from the  Representative  any equipment owned by
     the  Representative  to  assist  in  Inspectorate's  performance  under the
     Contracts.  Any such purchase shall be on terms  acceptable to both parties
     and the price of such equipment shall be its fair market value.

4.2  Inspectorate may offer employment to any employees of the Representative to
     assist Inspectorate in its performance under any Contract.

Signatories:

Inspectorate America Corporation        Barringer Laboratories, Inc.

By:  /s/ Andrew Roberts                 By:  /s/ J. Graham Russell
   ------------------------------           ------------------------------------

Name: Andrew Roberts                    Name:  J. Graham Russell

Title:  Vice President                  Title:  President

Date:  9/29/99                          Date:  9/23/99

<PAGE>

<TABLE>
<CAPTION>
                                                            EXHIBIT A

                                                               1998

               1998                January        February       March        April       May       June
               ----                -------        --------       -----        -----       ---       ----
<S>                                <C>            <C>          <C>           <C>        <C>        <C>
Central Am
          La Libertad             75086.24        93036.68       104319.36    134553.60   63440.80  84223.12
          Greenstone Misc.
          Honduras                                30764.12        47167.58     29143.10   22880.35  16682.00
          Bonanza                                                 20488.60       477.32     357.00  12344.16
          Rosita                                                  11003.04     22531.96   37520.16   7575.80
          Focal Resources
          Occidente
          McClelland Hon.                                                                    27.85
                                 ---------       ---------       ---------    ---------  --------- ---------
               Monthly Total:     75086.24       123801.00       182978.58    188705.88  124226.26 188324.88

Columbia Corona                    7666.40        11184.00        11122.00     11269.62    4884.84   4992.30
          Metallo Res.
          GoldPlata                                                                                  7541.60
          Gold Bullet
          Sur America
          Misc.
          Goldfields S.A.                            84.00                      3235.80
          Antioquia                                                                          84.00
                                  ---------       --------       ---------    ---------   --------  --------
               Monthly Total:      7666.40        11288.00        11122.00     14606.42    4968.84  12833.90

Spain Rio                         32335.85        28986.85        49327.44     58842.52   38704.37  37843.56
                                  --------        --------       ---------    ---------   --------  --------
               Monthly Total:     32335.85        28986.85        49327.44     58842.52   38704.37  37843.56

Peru      Misc. Peru               7218.50         1477.47         1895.23      3252.06
          Buena Ventura            3222.45         3178.49                                            180.63
          Conga                                                                             270.00
          Food Equipment                                                                    131.00
          Consultant Serv.                                                                             19.20
          Pan America
          Magallanos
          BHP-Tintaya
          Auriterm                                                                                     78.80
          Nueva Condor
          ASC                                                                               868.80
          SGS                                                                                65.00
          Sulliden                                                                                    130.56
          El Misti
          Mineur
          Yanacocha                                                                        5772.92  28408.44
          Inversiones                                                                        16.61
          Southern Peru                                                                    6328.89   3145.00
          Tapados
          Midras Minerals                                                                    61.83    108.84
                                  --------        --------       ---------    ---------   --------  --------
               Monthly Total:     10440.95         4885.96         1895.23      3252.06   13515.65  32069.57

                                   Page 1(a)
<PAGE>

<CAPTION>

               1998                  July          August      September     October    November   December   Yearly Total
               ----                  ----          ------      ---------     -------    --------   --------   ------------
<S>                                <C>            <C>          <C>           <C>        <C>        <C>        <C>
Central Am
          La Libertad              50917.00        3761.44      15747.84       5028.28                         610094.66
          Greenstone Misc.          9875.00        2433.20                                1538.48               13846.68
          Honduras                 48399.45       42770.00      14104.00                  3115.00              255025.60
          Bonanza                   1025.44        2731.00        267.60                                        37691.12
          Rosita                   14352.80        2772.00         71.20                                        95826.76
          Focal Resources                                         517.50                                          517.60
          Occidente                                                                                                 0.00
          McClelland Hon.              9.45                                                           111.75      149.15
                                   --------       --------      --------      ---------   -------    -------- ----------
               Monthly Total:     124579.14       54487.64      30708.14       5028.28    4653.48     111.75
                                                                                                              ----------
                                                                                                   C.A. Total 1013151.37

Columbia Corona                     1063.44         218.70       3869.82       3187.52    2219.80    1023.39    62701.83
          Metallo Res.               740.50                                                                       740.50
          GoldPlata                10049.50       12769.00       2343.80       8771.70                          39475.60
          Gold Bullet                              1639.25        916.85       1108.85                           3884.95
          Sur America                                                                     4278.93     144.38     4423.31
          Misc.                      463.80          60.00        376.75                   101.80    1215.30     2196.65
          Goldfields S.A.                                                                                        9319.80
          Antioquia                                                              65.20
                                   --------       --------      --------     ---------   --------    -------- ----------
               Monthly Total:      12307.24       14878.95       7506.22      11153.27    8800.63    2383.07
                                                                                                              ----------
                                                                                                   Col. Total  116891.84

Spain Rio                          32471.46       19985.10      23405.99      21091.18   20282.87   19221.33   380488.62
                                   --------       --------      --------     ---------   --------   --------  ----------
               Monthly Total:      32471.46       19985.10      23405.99      21091.18   20282.87   19221.33
                                                                                                              ----------
                                                                                                  Spain Total  380488.62

Peru      Misc. Peru                 882.15         316.38        166.50        149.50     108.00              15245.77
          Buena Ventura                                                                                         8581.67
          Conga                      391.50                      3764.70       1585.50    4749.50    6541.90   16303.10
          Food Equipment                                                                                         131.00
          Consultant Serv.                                                       19.20                            38.40
          Pan America                125.73                                                                      125.73
          Magallanos                                             1477.26                                        1477.26
          BHP-Tintaya                                                          1512.15                          1512.15
          Auriterm                                                                                                76.80
          Nueva Condor               619.30                                                                      619.30
          ASC                                                                                                    888.80
          SGS                                                                                                     85.00
          Sulliden                                                                                               130.68
          El Misti                                                207.36                                         207.36
          Mineur                     429.30                                                                      429.30
          Yanacocha                23205.46        6056.28       8161.84       8709.33    4375.42    5895.75   88585.46
          Inversiones                  5.85                      1112.40                                        1134.86
          Southern Peru             1416.27       10513.18       4347.37       5085.12    2714.54    9579.18   43109.55
          Tapados                                                                                                  0.00
          Midras Minerals                            10.57        498.73         57.00      19.95                757.02
                                   --------       --------      --------     ---------   --------   -------- ----------
               Monthly Total:      28866.68       18896.39      18736.16      15087.80   11967.41   21016.83

                                                                                                              ----------
                                                                                                   Peru Total 177398.88
</TABLE>

                                   Page 1(b)
<PAGE>

<TABLE>
<CAPTION>
               1998                January        February       March        April       May       June
               ----                -------        --------       -----        -----       ---       ----
<S>                                <C>            <C>          <C>           <C>        <C>        <C>
  U.S.    Nv Land                   450.45                                                           1588.09
          McClelland               1369.00         1290.75          406.75      4894.00    2522.35   3079.70
          Newmont                  2523.00          234.00                        15.00                23.40
          Barringer Co.                                                                               297.00
          General Minerals
          Echo Bay
          MRDI
          Dos Amigos
          M K Gold                                                                         1261.98
          Davonian                                                                          153.75    996.90
          Homestake                 584.76
          Romanaco                  133.64         1552.27          319.60       430.27
          Battle Mtn.              4035.19                                                   17.25    853.85
          White Knight             3625.79                                                 7407.57  18388.49
          North Mining                                                                                 78.92
          CR Minerals                                                                        47.00
          Mustang Gold              182.00                         1452.80       189.00     187.74
          Western States
          Crown                                                                             303.88
          Round Mtn.                               6218.14          386.65       346.75
          Montana Gold                                                           728.80     711.13   3527.88
          Campbell
          Misc.                    5182.52          950.83         1044.68      4086.46                89.35
          Coeur                                                                            3476.80  21397.40
          Nv. Gold
          Luzenac                                                                           282.00
          Riddle                                                                             93.00
          Oro Nevada
          GD Resource                                                                                  30.00
          Plum Mining
          Sedi-Met                                                                          374.00
          Volipka                                                                            67.50
          Carrington                                                                        170.10
          Fritz                                                                              80.00
          Pioneer Group
          Comidor                   550.88
                                  --------        --------       ---------    ---------   --------  ---------
               Monthly Total:     25708.98        10340.99         3610.48     10798.48   30657.92  61871.76

Mexico
          McClelland               5245.50                                       467.50     921.50   2188.00
          Altiplano                                 988.65         1015.56      1132.74               126.22
          Bolden                   9805.55
          Crown Mx.                                                4920.17      4781.45
          Holmax
          Gambior                                  4279.24         8044.27
          Monarch                   276.16                          659.68       487.04     249.08
          Avino                                                      82.46                   82.46   1381.29
          Oroca                    1304.32         1726.25        16517.24     13987.86   11002.11  21067.63

                                   Page 2(a)

<PAGE>

<CAPTION>
               1998                July           August         September    October     November  December   Yearly Total
               ----                ----           ------         ---------    -------     --------  --------   ------------
<S>                                <C>            <C>          <C>           <C>        <C>        <C>         <C>
  U.S.    Nv Land                   1162.88        3304.26                                                      6483.88
          McClelland                1339.75        1161.40         1329.45       731.95    1997.00   2606.05   22724.15
          Newmont                                  1255.50                                 3640.89              7891.79
          Barringer Co.               57.60                        3675.58       613.84     666.72    121.50    5432.22
          General Minerals          1524.90                                                                     1624.80
          Echo Bay                                                              2895.12    5623.38    388.56    8905.04
          MRDI                       712.50                                                                      712.50
          Dos Amigos                               7359.30                      -703.78                         8856.52
          M K Gold                                                                                              1261.98
          Davonian                                                                                              1150.85
          Homestake                                                                                              584.76
          Romanaco                                                                                              2435.68
          Battle Mtn.                 12.76                                       38.25                         4957.32
          White Knight              5474.24         629.79         1116.57     12808.94   23295.82  14517.87   87105.18
          North Mining                                               86.49                  461.39               616.80
          CR Minerals                 14.90                                                          1110.00    1171.80
          Mustang Gold                                                                                          1991.34
          Western States             484.00          37.50                                                       531.50
          Crown                                                                                                  303.88
          Round Mtn.                                                                                            6991.54
          Montana Gold              2893.44        1422.63                                  963.10   1544.26   11789.24
          Campbell                                                              2052.00                         2052.00
          Misc.                      492.87         387.38         1909.88      1546.12    3341.04    871.46   19882.39
          Coeur                    13498.00                                                                    38372.20
          Nv. Gold                                                              1846.49    1899.54              3746.03
          Luzenac                     84.00          84.00                       188.00     188.00    188.00    1034.00
          Riddle                                                                                                  93.00
          Oro Nevada                               3702.36                       301.88                         4044.26
          GD Resource                 20.00                                                                       50.00
          Plum Mining                                                           2971.29      88.20    310.06    2789.55
          Sedi-Met                                                  247.20                                       821.20
          Volipka                                                                                                 67.60
          Carrington                                                                                             170.10
          Fritz                                                                                                   80.00
          Pioneer Group                                                                              3462.56    3462.56
          Comidor                                   112.12                                                       663.00
                                   --------       --------       ---------    ---------   --------  --------  ---------
               Monthly Total:      31589.49       20123.86         8499.95     35026.70   45189.34  26218.62
                                                                                                              ---------
                                                                                                   U.S. Total:309736.86

Mexico
          McClelland                2503.50        1747.50          582.00      1268.00    3504.35   5608.90   24014.73
          Altiplano                  362.57        2758.75         1085.05                  379.94   1383.37    9212.85
          Boldenen                                                                                              9605.55
          Crown Mx.                                2123.72         1185.11      2360.54                        15370.99
          Holmax                     642.60          36.45                                                       679.05
          Cambior                                                                                              12323.51
          Monarch                                                                                               1671.98
          Avino                      591.61          50.35          383.47                  739.38    485.11    3796.13
          Oroca                     1372.68         598.83           65.88      4246.65                        71899.43

                                   Page 2(a)

<PAGE>

<CAPTION>
               1998                January        February       March        April       May       June
               ----                -------        --------       -----        -----       ---       ----
<S>                                <C>            <C>          <C>           <C>        <C>        <C>
          Quellerra                                                                                    398.52
          Pioscho                                                   780.66                 8383.89
          BLM                                      1220.17                                   25.50
          Valarie Gold                                                                      401.20
          Misc.                      693.40                          73.80      4414.07     277.27      22.00
          Cienega                   1467.65        2153.05         1528.36      1746.62    1175.67     847.23
          New Coast
          Corrosion                                                                                     33.45
          Parrena
          Hecla
          Oliverez                                                                                     143.85
          Cordilleras                                                                                 4924.21
          Bacis                                                     362.61       476.83    1136.66     393.80
          San Felipe
          Saul Olivarez                                                                                 36.90
          Evaristo Olivarez                                                                             98.75
          Sotula                                   3031.64                       165.36     491.40
          Viceroy                                                                           984.38
          Sand                                     8788.76        17096.30     13985.31    7373.75    3228.62
          Augusto                   7468.98       22336.61         1189.90                             512.46
                                   --------       --------       ---------    ---------   --------   --------
               Monthly Total:      28061.66       44533.37        52271.03     41643.78   32804.87   38402.73

Shasta
          Gatchell
          Homestake
          Newmont
          Cameco
          Calaveras Cement
          Florida Canyon
          Barrick Goldstrike
                                   --------      ---------       ---------    ---------   --------  ---------
               Monthly Total:          0.00           0.00            0.00         0.00       0.00       0.00

                                   --------      ---------       ---------    ---------  ---------  ---------
               Grand Total:       177279.98      221588.27       301204.76    315748.24  244577.31  280646.39

                                   Page 2(b)

<PAGE>

<CAPTION>
               1998                July           August         September    October     November  December   Yearly Total
               ----                ----           ------         ---------    -------     --------  --------   ------------
<S>                                <C>            <C>          <C>           <C>        <C>        <C>         <C>
          Quellerra                                                 365.31      321.43       98.83                  1184.90
          Pioscho                   333.10                                     2504.23      914.43   1183.82       17080.13
          BLM                                                                                                       1254.87
          Valarie Gold                             6964.13         7933.80     5149.26     9849.88   4630.05       34728.12
          Misc.                                     876.89         1688.18      763.60                 84.00        8883.21
          Cienega                                                                                                   8918.80
          New Coast                5027.40         2060.10                                                          7087.50
          Corrosion                                                                                                   33.45
          Parrena                    80.80                                                                            82.80
          Hecla                                                                5142.80    38835.06  44353.78       88331.64
          Oliverez                                                  221.40                                           385.05
          Cordilleras                                                          3453.56      384.92                  8762.69
          Bacis                                    3231.69          147.58      849.57                              6597.74
          San Felipe               2755.00         6954.00                                                          9709.00
          Saul Olivarez                                                                                               36.90
          Evaristo Olivarez                                                                                           98.75
          Sotula                     87.15                                                 2805.65    192.66        6773.87
          Viceroy                                                                                                    984.38
          Sand                      163.60                                                                         50638.54
          Augusto                  7344.16        24232.80        20538.14     9853.13               9856.25      103132.53
                                  --------       ---------       ----------   ---------   --------   --------
               Monthly Total:     24268.35        61635.31        34155.72    35712.77    57313.26  87766.94
                                                                                                                  ---------
                                                                                                   Mex. Total:    503256.68

Shasta
          Gatchell                                                                                   5887.30        5887.30
          Homestake                                                                                  9905.47        9905.47
          Newmont                                                                                     731.85         731.85
          Cameco                                                                                      384.56         364.56
          Calaveras Cement                                                                             30.00          30.00
          Florida Canyon                                                                             2185.45        2185.45
          Barrick Goldstrike                                                                         2085.35        2085.35
                                  ---------      ---------      ---------   ----------   ---------  --------
               Monthly Total:         0.00            0.00           0.00         0.00        0.00  20949.88
                                                                                                                  ---------
                                                                                                 Shasta Total:     20949.88

                                 ---------       ---------      ---------    ---------   --------- ---------
               Grand Total:      252069.26       177995.25      125012.18    123110.00   145986.88 156657.82
                                                                                                                 ----------
                                                                                                    US/MEX To:   2521874.34

                                                                                                                 ----------
                                                                                                Monthly G. Tot   2521874.34
</TABLE>

                                   Page 2(b)
<PAGE>

<TABLE>
<CAPTION>
                                                            EXHIBIT A

                                                               1999

               1999                January        February       March        April       May       June
               ----                -------        --------       -----        -----       ---       ----
<S>                                <C>            <C>          <C>           <C>        <C>        <C>
Central Am
          La Libertad
          Greenstone Misc.            53.88
          Honduras                    87.30
          Bonanza
          Rosita
          Focal Resources
          Occidente
          McClelland Hon.             14.90         100.00
                                  ---------       --------       ---------    ---------  --------- ---------
               Monthly Total:        156.08         100.00            0.00         0.00       0.00      0.00

Columbia Corona                                                     383.17
          El Roble                                   85.00           52.30       224.10     292.90
          GoldPlata                                                                                   215.50
          Gold Bullet                               781.50           33.60      2783.75
          Geoda Ltd                                                                          70.20
          Cerromatoso                              1239.00
          Exman LTDA                                                232.50                   31.05
          Fontino Gold                                              280.00
          Reavis Lindsey                                                        1733.55
          Centena S.A.                                                                       24.25
          Misc.                                                                                       211.70
          Goldfields S.A.                                                                  1668.50
          Antioquia
                                  ---------       --------       ---------    ---------   --------  --------
               Monthly Total:          0.00        2105.50          981.57      4741.40    2086.90    427.20

Spain Rio                           5644.31        9114.68        23397.62     17909.16   17875.54  16230.79
          Institute Tecfhnolog       423.00
                                   ---------      --------       ---------    ---------   --------  --------
               Monthly Total:       6067.31        9114.68        23397.62     17909.16   17875.54  16230.79

Peru      Misc. Peru                                                 27.75                             16.90
          Cementos                                                   86.75                 1152.00
          Conga
          Pacific Rim                                                                       274.46    900.00
          Consultant Serv.
          GeoLabs                                                                                     149.50
          Oro Peru                                                                                    180.95
          BHP-Tintaya                                                            645.58
          Cyprus
          Nueva Condor
          ABX                        108.00
          Attisma                    499.27         328.94
          Sulliden                                                                                    130.56

                                   Page 3(a)
<PAGE>

               1999                  July          August      September     October    November   December   Yearly Total
               ----                  ----          ------      ---------     -------    --------   --------   ------------
<S>                                <C>            <C>          <C>           <C>        <C>        <C>        <C>
Central Am
          La Libertad               3739.20                                                                      3739.20
          Greenstone Misc.                                                                                         53.88
          Honduras                                                                                                 87.30
          Bonanza                                                                                                   0.00
          Rosita                                                                                                    0.00
          Focal Resources                                                                                           0.00
          Occidente                                                                                                 0.00
          McClelland Hon.                                                                                         114.90
                                  ---------       --------       ---------    ---------  --------  ---------   ---------
               Monthly Total:       3739.20         100.00            0.00         0.00      0.00       0.00
                                                                                                               ---------
                                                                                                  C. A. Total:   3995.28

Columbia Corona                                                                                                   383.17
          El Roble                   237.00                                                                       891.30
          GoldPlata                  255.75         532.00                                                       1003.25
          Gold Bullet                240.50                                                                      3839.35
          Geoda Ltd                                                                                                70.20
          Cerromatoso                                                                                            1239.00
          Exman LTDA                                                                                              263.55
          Fontino Gold                                                                                            280.00
          Reavis Lindsey                                                                                         1733.55
          Centena S.A.                                                                                             24.25
          Misc.                       27.75                                                                       239.45
          Goldfields S.A.                                                                                        1668.50
          Antioquia                                                                                                 0.00
                                  ---------        --------       ---------    ---------  -------    -------    ---------
               Monthly Total:        761.00          532.00           0.00         0.00      0.00       0.00
                                                                                                                ---------
                                                                                                   Col. Total:   9902.02

Spain Rio                           8950.45          303.15                                                     99425.70
          Institute Tecfhnolog                                                                                    423.00
                                  ---------        --------       ---------    ---------  -------    -------    ---------
               Monthly Total:       8950.45          303.15           0.00         0.00      0.00       0.00
                                                                                                               ---------
                                                                                                  Spain Total:  99848.70

Peru      Misc. Peru                 965.40                                                                      1010.05
          Cementos                                                                                               1238.75
          Conga                      732.90                                                                       732.90
          Pacific Rim                                                                                            1174.46
          Consultant Serv.                                                                                          0.00
          GeoLabs                                                                                                 149.50
          Oro Peru                                                                                                180.95
          BHP-Tintaya                                                                                             645.58
          Cyprus                     120.00                                                                       120.00
          Nueva Condor                                                                                              0.00
          ABX                                                                                                     108.00
          Attisma                                                                                                 828.21
          Sulliden                                                                                                  0.00

                                   Page 3(b)
<PAGE>

<CAPTION>

               1999                January        February       March        April       May       June
               ----                -------        --------       -----        -----       ---       ----
<S>                                <C>            <C>          <C>           <C>        <C>        <C>
          El Misti
          Sayapullo                                                                         449.28    547.96
          Yanacocha                 1371.83        3804.61        11564.46      5195.06    7120.22  11871.22
          Inversiones                                              1263.35                  535.67
          Southern Peru                             439.72                                 2781.24  17810.96
          Tapados
          Midras Minerals            317.20                         157.50                            122.40
          Pan Am Silver
                                   --------       --------       ---------    ---------   --------  --------
               Monthly Total:       2296.30        4573.27        13100.11      5840.64   12312.88  31599.89

  U.S.    Nv Land
          McClelland                1232.45         272.60            5.00       167.50      72.90
          Newmont                                  4854.53                     12713.40              9634.80
          Barringer Co.               27.00         595.35         1452.60       287.77     169.60    108.00
          General Minerals
          Echo Bay                   310.00         359.04         1179.36       866.48    1128.80    134.64
          Hecla (usa)                                                                      2556.77    472.50
          Nu-Apex                                                  2986.56      2164.04
          Larry McMaster                                                        1246.40
          Swoboda Inc.                               17.10                                            652.00
          Homestake                  107.25          72.64          628.74       470.00    6278.85     81.00
          Rosebud
          Battle Mtn.
          Kennecott                                                                         135.00
          Big Sky Res. Corp.                                                     136.84
          North Mining               147.56                                                 898.58   3030.37
          CR Briggs                 4072.12
          Mustang Gold
          Dos Amigos                                                             937.20      75.20
          Orko Gold                                                                         207.38
          CR Minterals               260.00                                                            111.75
          Montana Gold              1209.50        1511.83         3278.34      3338.64    3589.95    2265.96
          Thiokol                    120.00
          Misc.                      100.00         191.55          195.50       840.10     697.95     316.30
          Coeur                      627.00
          Nv. Gold                    62.73                         784.13      6519.04
          Luzenac                     94.00          94.00
          American Indep.           2801.25
          Carrington Cons.                                           72.90                              38.25
          Sedi-Met                                                               135.00     135.00
          Nv. Pacific Gold                                                                 3000.00     191.10
          Thunder Mtn.                                                                      242.20     299.95
          Western States
          Plum Mining                 32.40
          Pacer Dome                                305.25

                                   Page 4(a)
<PAGE>

               1999                  July          August      September     October    November   December   Yearly Total
               ----                  ----          ------      ---------     -------    --------   --------   ------------
<S>                                <C>            <C>          <C>           <C>        <C>        <C>        <C>
          El Misti                                                                                                   0.00
          Sayapullo                                                                                                997.24
          Yanacocha               19292.24        36842.99                                                       97062.63
          Inversiones                                                                                             1799.33
          Southern Peru            4115.31                                                                       25147.23
          Tapados                                                                                                    0.00
          Midras Minerals           122.50                                                                         709.60
          Pan Am Silver                            1965.91
                                  --------        --------       ---------    ---------   --------  --------
               Monthly Total:     25338.35        36842.99            0.00         0.00       0.00      0.00
                                                                                                                ---------
                                                                                                   Peru Total:  131904.43

  U.S.    Nv Land                                                                                                    0.00
          McClelland                189.50                                                                        1939.95
          Newmont                  9895.76                                                                       37098.49
          Barringer Co.              54.00                                                                        2694.32
          General Minerals                                                                                           0.00
          Echo Bay                                                                                                3978.32
          Hecla (usa)                                                                                             3029.27
          Nu-Apex                                                                                                 5150.60
          Larry McMaster                                                                                          1246.40
          Swoboda Inc.              105.00                                                                         774.10
          Homestake                                                                                               7639.48
          Rosebud                 22678.85        14033.50                                                       36712.35
          Battle Mtn.                                                                                                0.00
          Kennecott                                                                                                135.00
          Big Sky Res. Corp.        648.00                                                                         784.84
          North Mining                                                                                            4076.51
          CR Briggs                                                                                               4072.12
          Mustang Gold                                                                                               0.00
          Dos Amigos                                                                                              1012.40
          Orko Gold                                                                                                207.38
          CR Minterals                                                                                             371.75
          Montana Gold             1163.36         1764.40                                                       18121.98
          Thiokol                                                                                                  120.00
          Misc.                    1843.68          658.89                                                        4843.94
          Coeur                                                                                                    627.00
          Nv. Gold                                                                                                7365.90
          Luzenac                                                                                                  188.00
          American Indep.                                                                                         2801.25
          Carrington Cons.                                                                                         111.15
          Sedi-Met                                                                                                 270.00
          Nv. Pacific Gold                                                                                        3191.10
          Thunder Mtn.              383.25          129.15                                                        1054.55
          Western States             20.25                                                                          20.25
          Plum Mining                                                                                               32.40
          Pacer Dome                                                                                               305.25

                                   Page 4(b)
<PAGE>

<CAPTION>

               1999                January        February       March        April       May       June
               ----                -------        --------       -----        -----       ---       ----
<S>                                <C>            <C>          <C>           <C>        <C>        <C>
          Alta Gold                  584.40                                        6.75
          Mountain Gold                                             255.75
          Joe Pauley                  50.00
          Pioneer Group              642.30                         227.12
          GreyStar                                                  255.00       216.00
          Tonkin Springs
                                   --------       --------       ---------    ---------   --------   ---------
               Monthly Total:      12479.96        8273.89        11321.00     30088.16   19188.18    17336.62

Mexico
          McClelland                2015.50        2317.78         3277.50      2791.50    2397.25     1790.20
          Altiplano                 2439.83                                      270.17      55.33
          Guillermo Nevarez           28.45           6.50
          Crown Mx.                                3383.76         1576.24      4332.88    9542.16
          Cozamin                                                                973.09
          Comermin                                                  569.92
          Norando                                                  8762.91     10594.64
          Azco Mining                                               159.75      3646.57
          Avino                       17.53         310.08                      1337.50     723.08      885.16
          Cameco                                                                 290.06
          Minera Teck                              3057.74          987.35       449.33    2400.00
          Picacho                    290.98         493.08          124.69
          Gilbert Perez                              75.00
          Valerie Gold              6476.20        2655.45         8290.48     19476.02   14151.33     6870.81
          Misc.                      122.35          23.50                                  604.50      115.70
          Penoles                                                                           142.07
          Geo Ex.                                                               1604.12      47.00
          Pacifico de Desa.                                         780.72
          Corrosion                                  68.90
          San Louis                                                 691.05
          Hecia                    21679.97       24647.64        37862.92     42687.12   11837.79     8537.84
          Arhama                     248.00
          Cordilleras                813.75        4107.85         2599.20       270.15      60.07     2349.51
          Bacis                                                    1483.16       457.94                 352.75
          Minera Hemlo                                                                                 2534.20
          Mallon                                    703.28                      1160.25    1615.35     5142.48
          Aquilon Minera             795.80                                      180.00
          PTM                                       590.88
          Sotula                     459.03                        9789.97     18280.91   12274.10    25103.42
          Independence                             3028.16         7912.56     11980.84
          Doree                                                     841.97
          Augusto                   4499.75                                     2970.51    9107.55     8840.40
                                   --------       --------       ---------    ---------   --------   ---------
               Monthly Total:      39887.11       45394.57        85782.39    123668.60   86805.30    66122.72

                                   Page 5(a)
<PAGE>

               1999                  July          August      September     October    November   December   Yearly Total
               ----                  ----          ------      ---------     -------    --------   --------   ------------
<S>                                <C>            <C>          <C>           <C>        <C>        <C>        <C>
          Alta Gold                                                                                                 591.75
          Mountain Gold                                                                                             255.75
          Joe Pauley                                                                                                 50.00
          Pioneer Group                                                                                             869.42
          GreyStar                                                                                                  471.00
          Tonkin Springs                             377.54
                                   --------        --------       ---------    ---------   --------   ---------   ---------
               Monthly Total:      36981.65        16585.91           0.00         0.00       0.00        0.00
                                                                                                                 ---------
                                                                                                     U.S. Total: 152255.37

Mexico
          McClelland                 638.00           73.50                                                       15301.50
          Altiplano                  183.17                                                                        2948.50
          Guillermo Nevarez                                                                                          34.95
          Crown Mx.                  433.88        39783.96                                                       23247.88
          Cozamin                                                                                                   973.09
          Comermin                                                                                                  569.92
          Norando                                                                                                 19344.55
          Azco Mining                                                                                              3806.32
          Avino                                                                                                    3273.35
          Cameco                                                                                                    290.06
          Minera Teck                                                                                              6894.42
          Picacho                    415.65                                                                        1321.37
          Gilbert Perez                                                                                              75.00
          Valerie Gold              2117.64                                                                       60037.93
          Misc.                                       47.00                                                         913.05
          Penoles                                                                                                   142.07
          Geo Ex.                                                                                                  1651.12
          Pacifico de Desa.                                                                                         780.72
          Corrosion                                                                                                  68.90
          San Louis                   12.25                                                                         703.30
          Hecia                     8537.84          527.20                                                      181465.99
          Arhama                                                                                                    248.00
          Cordilleras               2035.86                                                                       12236.39
          Bacis                                                                                                    2293.85
          Minera Hemlo               124.42          206.15                                                        2864.77
          Mallon                    4662.07                                                                       13283.43
          Aquilon Minera                                                                                            903.80
          PTM                                                                                                       590.88
          Sotula                   15621.30         4632.01                                                       86457.74
          Independence                                                                                            22921.56
          Doree                                                                                                     841.97
          Augusto                                                                                                 25418.21
                                   --------        --------      ---------    ---------   --------   ---------  ----------
               Monthly Total:      34782.08         9464.82           0.00         0.00       0.00        0.00
                                                                                                                 ---------
                                                                                                     Mex. Total: 491907.59

                                   Page 5(b)
<PAGE>

<CAPTION>
               1999                January        February       March        April       May       June
               ----                -------        --------       -----        -----       ---       ----
<S>                                <C>            <C>          <C>           <C>        <C>        <C>
Shasta:
          Getchell                  3123.30                                      91.50
          Homestake
          Newmont
          Tom Billings                88.00
          Cameco
          Calaveras Cement            89.75
          Florida/Apollo                                            641.45     5970.84     3703.88    525.00
          Barrick Goldstrike        2783.85         110.25          278.25      289.10      378.00    283.50
                                  ---------       --------       ---------    ---------  --------- ---------
               Monthly Total:       6084.90         110.25          919.70     6351.44     4081.88    808.50

                                  ---------      ---------       ---------   ---------   ---------  --------
               Grand Total:        66971.66       69672.16       135502.39   188599.40   142350.68 132525.72

                                   Page 6(a)
<PAGE>

<CAPTION>
               1999                  July          August      September     October    November   December   Yearly Total
               ----                  ----          ------      ---------     -------    --------   --------   ------------
<S>                                <C>            <C>          <C>           <C>        <C>        <C>        <C>
Shasta:
          Getchell                  3426.18       10734.20                                                        17375.18
          Homestake                                                                                                   0.00
          Newmont                                                                                                     0.00
          Tom Billings                                                                                               88.00
          Cameco                                                                                                      0.00
          Calaveras Cement                                                                                           89.75
          Florida/Apollo            1602.22                                                                       12443.39
          Barrick Goldstrike         294.00                                                                        4416.95
                                  ---------       --------       ---------    ---------  --------- ---------
               Monthly Total:       5322.40       10734.20            0.00         0.00       0.00      0.00
                                                                                                                 ---------
                                                                                                   Shasta Total:  34413.27

                                  ---------      ---------       ---------    ---------  ---------  --------
               Grand Total:       115875.13       74463.07            0.00         0.00       0.00      0.00
                                                                                                                 ---------
                                                                                                   US/MEX Total: 924226.66

                                                                                                 Monthnly G.tot  925960.21
</TABLE>

                                   Page 6(b)

<PAGE>

                                   EXHIBIT B

                          BARRINGER LABORATORIES INC.EXHIBIT B

THESE  SECURITIES HAVE NOT BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933 OR
ANY STATE  SECURITIES  ACTS OR LAWS,  AND HAVE BEEN  ISSUED AND SOLD IN RELIANCE
UPON  EXEMPTIONS  FROM THE  REGISTRATION  REQUIREMENTS  OF SUCH  ACTS AND  LAWS,
INCLUDING  BUT NOT LIMITED TO THE  EXEMPTION  CONTAINED  IN SECTION  4(2) OF THE
SECURITIES ACT OF 1933. THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED UNLESS A
REGISTRATION  STATEMENT  HAS BECOME AND IS THEN  EFFECTIVE  WITH RESPECT TO SUCH
SECURITIES  OR BARRINGER  LABORATORIES,  INC. HAS RECEIVED AN OPINION OF COUNSEL
REASONABLY  SATISFACTORY TO IT, TO THE EFFECT THAT THE PROPOSED SALE OR TRANSFER
IS EXEMPT FROM  REGISTRATION  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  AND
ALL APPLICABLE STATE SECURITIES ACTS AND LAWS.

                                CONVERTIBLE NOTE
                                       OF
                          BARRINGER LABORATORIES, INC.

$____________________                                           October __, 1999

     BARRINGER LABORATORIES,  INC., a Delaware corporation (the "Company"),  for
value  received,  hereby promises to pay to the order of  ________________  (the
"Investor") or his permitted  assigns (in each case, the "Holder") at 15000 West
6th   Avenue,   Suite   300,   Golden,   Colorado   80401-5047,   the   sum   of
$___________________.  The  Company  shall  only  pay  interest  (to the  extent
permitted  by law) on any overdue  principal on this Note at the rate of 10% per
annum,  from the due date of such  principal  until  payment in full  thereof is
made.  The  principal  amount  then  outstanding  of this Note  shall be due and
payable in full on the 365th day from the date  hereof  (the  "Maturity  Date").
This Note is originally being issued pursuant to a Subscription Agreement, dated
October ___, 1999 (the "Original Issue Date"), between the Company, the Investor
and,   perhaps  others   (collectively,   the   "Investors")   (each  Investor's
Subscription  Agreement are collectively  referenced herein as the "Subscription
Agreement").  All Notes issued under the Subscription  Agreement are referred to
herein as the "Notes."

     The following is a statement of the rights of the Holder and the conditions
to which this Note is subject, and to which the Holder hereof, by the acceptance
of this Note, agrees:

<PAGE>

     1. Security.  The obligations  evidenced by, arising under or in connection
with,  this Note are  secured  by a security  interest,  created  pursuant  to a
certain  Security  Agreement,  dated  as  of  the  date  hereof  (the  "Security
Agreement"),  among the Company and the Investors, in the Collateral (as defined
in the Security Agreement).

     2.  Financing  Statements.  The  Company  shall  execute and deliver to the
Investor (i) the Security  Agreement;  (ii) Uniform  Commercial  Code  Financing
Statements (Form UCC-1) or appropriate  local equivalent in appropriate form for
filing under the Uniform Commercial Code or appropriate local equivalent of each
jurisdiction as may be necessary to perfect the security interests  purported to
be created by the Security  Agreement;  and (iii) all other documents  necessary
or, in the  reasonable  opinion  of the  Investor,  desirable,  to  perfect  the
security  interests  in the  Collateral  purported to be created by the Security
Agreement.

     3.  Amendments.  This Note may not be  amended,  modified  or waived in any
respect unless set forth in writing and signed by the Company and the Holder.

     4.  Notices.  So long as this Note remains  outstanding,  the Company shall
maintain an office or agency (which shall  initially be the  principal  place of
business of the Company  located at 15000 West 6th  Avenue,  Suite 300,  Golden,
Colorado  80401-5047)  where notices,  presentations  and demands to or upon the
Company  in respect  of this Note may be given.  All  notices to be given by the
Company to the Holder in  respect of this Note shall be  delivered  or mailed to
the  address of the Holder set forth on the records of the Company or such other
address as shall be designated in writing by the Holder to the Company.

     5. Events of  Default.  (a) The  following  shall  constitute  an "Event of
Default" under this Note:

               (i)  Default  shall be made in any  payment  of  principal  of or
          interest on this Note when the same shall become due and payable,  and
          such  principal or interest  shall remain unpaid for 30 days after the
          date upon which such payment was due;

               (ii) any  representation or warranty made by the Company under or
          in connection with the Subscription Agreement, the Security Agreement,
          the  Registration  Rights  Agreement,  dated  as of the  date  hereof,
          between  the  Company  and the  Investors  (the  "Registration  Rights
          Agreement,"  and  together  with the  Subscription  Agreement  and the
          Security Agreement, the "Transaction Documents"), or any certification
          or other  instrument  furnished  in  connection  with any  Transaction
          Document or the transactions contemplated thereby, shall prove to have
          been false or misleading in any material respect;

               (iii) default shall be made in the due  observance or performance
          of any covenant or agreement (other than as contemplated by clause (i)
          above)  to be  observed  or  performed  by the  Company  or any of its
          subsidiaries  for the  benefit  of the  Holder  under this Note or any
          Transaction  Document  and  such  default  shall  remain  uncured  and
          unwaived for a period of 30 days after written notice thereof is given
          to the Company by the Holder,  unless the Holder  determines  that the
          Company has  diligently  instituted  and is  continuing  diligently to
          pursue corrective action sufficient to cure such default;

                                       2
<PAGE>

               (iv) The Company shall (A) voluntarily commence any proceeding or
          file any petition  seeking  relief under Title 11 of the United States
          Code or any other Federal or state  bankruptcy,  insolvency or similar
          law,  (B) consent to the  institution  of any such  proceeding  or the
          filing  of  any  such  petition,  (C)  apply  for  or  consent  to the
          appointment of a receiver, trustee, custodian, sequestrator or similar
          official  for  the  Company  or  such  Subsidiary  or  for  all  or  a
          substantial  part of its properties,  (D) file an answer admitting the
          material  allegations  of a  petition  filed  against  it in any  such
          proceeding,   (E)  make  a  general  assignment  for  the  benefit  of
          creditors,  or (F) admit in writing its  inability to pay its debts as
          they become due;

               (v)  an   involuntary   proceeding   shall  be  commenced  or  an
          involuntary   petition   shall  be  filed  in  a  court  of  competent
          jurisdiction  seeking (A) relief in respect of the Company,  or of all
          or a substantial part of the properties thereof, under Title 11 of the
          United  States  Code  or  any  other  Federal  or  state   bankruptcy,
          insolvency or similar law, (B) the appointment of a receiver, trustee,
          custodian,  sequestrator or similar  official for the Company or for a
          substantial part of the properties  thereof,  or (C) the winding up or
          liquidation  of the  Company;  and an order  or  decree  approving  or
          ordering  any of the  foregoing  shall  be  issued  by a court  having
          jurisdiction and continue unstayed and in effect for 60 days; or

               (vi) an  unappealed  final  judgment  for the payment of money in
          excess of $250,000  shall be  rendered  against the Company or and the
          same  shall  remain  undischarged  or  unbonded  for  a  period  of 60
          consecutive days during which execution shall be effectively stayed.

          (b) In case of any Event of Default and at any time thereafter  during
the continuance of such Event of Default, the holders of a majority in principal
amount of the Notes then  outstanding  may,  by written  notice to the  Company,
declare  the  Notes  to be due and  payable  in full  both as to  principal  and
interest, together with a prepayment premium equal to 1% of the principal amount
of the Note as of the date thereof;  provided,  however,  that no notice need be
given to the  Company  if  acceleration  is based  upon the  Events  of  Default
described  in clauses  (v) or (vi) of  paragraph  (a) above,  in either of which
cases this Note shall automatically become due and payable without any action on
the part of the holders.

          (c) In case an Event of Default shall have occurred and be continuing,
the Holder  may  proceed to protect  and  enforce  its rights  either by suit in
equity or by action at law, whether for the specific performance of any covenant
or agreement  contained in the  Transaction  Documents or this Note or in aid of
the exercise of any power granted in the Transaction  Documents or in this Note,
or proceed to enforce  the payment of this Note or to enforce any other legal or
equitable right of the Holder.  No remedy conferred  hereunder is intended to be
exclusive of any other remedy and each such remedy shall be cumulative and shall
be in addition to every other remedy  given  hereunder or currently or hereafter
existing at law or in equity or by statute or otherwise.

     6.  Conversion.

          6.1 Election by Company.  The Company has the right, at any time until
the Maturity  Date,  to convert this Note in accordance  with the  provisions of
Subsection 6.2 hereof,  in whole or in part,  into fully paid and  nonassessable
shares of the Common  Stock,  par value  [$0.01] per share,  of the Company (the
"Common  Stock").  The number of shares of Common Stock into which this Note may

                                       3
<PAGE>

be  converted  at any given  time shall be  determined  by  dividing  the unpaid
principal amount by the Conversion  Price. As used herein,  the term "Conversion
Price" shall mean a price of $0.06 per share, subject to adjustment as set forth
in Section 8.

          6.2  Conversion  Procedure.  The Company  anticipates  that will be in
position to take all action as is  necessary  to  increase  the  authorized  but
unissued  shares of its common  stock  during the first  quarter of fiscal  year
2000, if not sooner.  Therefore,  if not sooner than or during the first quarter
of fiscal  year 2000,  the Company  shall,  as soon as  reasonably  practicable,
convert this Note into shares of Common Stock and shall issue and deliver to the
Holder a certificate  or  certificates  for the number of Shares so converted to
which the Holder is entitled in accordance  with the terms and conditions of the
Subscription  Agreement.  Such  conversion  shall be  deemed  to have  been made
immediately prior to the close of business on the date that the Company issues a
certificate or certificates  representing  such Shares and the person or persons
entitled to receive the Shares  shall be treated for all  purposes as the record
holder or  holders of such  Shares as of such  date.  On such date that the full
outstanding  principal  balance  of this Note is  converted  to Common  Stock as
provided herein, this Note shall be deemed to be paid in full. On such date, the
Holder shall take reasonable action to surrender this Note to the Company and to
reflect that it has been paid in full.

          6.3 No Fractional  Shares.  No fractional shares of Common Stock shall
be issued  upon  conversion  of this Note.  In lieu of the  Company  issuing any
fractional  shares to the Holder upon the  conversion of this Note,  the Company
shall pay to the Holder in immediately available funds the amount of outstanding
principal  that is not so converted.  Upon  conversion in whole of this Note and
the proper issuance of a certificate or certificates representing the Shares and
payment in lieu of fractional shares, the Company shall be forever released from
all its obligations and liabilities under this Note.

     7. Reservation of Common Stock. If not sooner, than during as or reasonably
practicable  after the first quarter of fiscal year 2000, the Company shall take
all action as is  necessary to increase  the amount of  authorized  but unissued
shares of Common Stock. Thereafter,  the Company shall at all times duly reserve
a sufficient  number of shares of  authorized  Common  Stock for  issuance  upon
conversion of all Notes.  Upon  issuance,  sale and delivery of a certificate or
certificates  representing  the Shares,  such Shares shall be validly issued and
outstanding,  fully paid and nonassessable with no personal liability  attaching
to the ownership thereof,  and shall not be subject to preemptive or any similar
rights of any person or entity.

     8. Adjustment of Conversion  Price.  (a) If, at any time after the Original
Issue Date, the number of outstanding shares of Common Stock is (i) increased by
a stock  dividend  payable  in  shares of Common  Stock or by a  subdivision  or
split-up  of shares of Common  Stock,  or (ii)  decreased  by a  combination  or
reverse split of shares of Common Stock,  then,  following the record date fixed
for the  determination  of  holders of Common  Stock  entitled  to  receive  the
benefits of such stock dividend,  subdivision,  split-up, combination or reverse
split,  the  Conversion  Price shall be  adjusted  to a new amount  equal to the
product of (A) the  Conversion  Price in effect on such  record date and (B) the
quotient  obtained  by  dividing  (x) the  number  of  shares  of  Common  Stock
outstanding on such record date (without  giving effect to the event referred to
in the foregoing clause (i) or (ii)) by (y) the number of shares of Common Stock
which  would be  outstanding  immediately  after  the event  referred  to in the
foregoing clause (i) or (ii), if such event had occurred  immediately  following
such record date.

                                       4
<PAGE>

          (b) If, at any time after the Original  Issue Date,  the Company shall
issue or be deemed to have issued (as  provided  below)  shares of Common  Stock
without  consideration or for a consideration per share less than the Conversion
Price in effect immediately prior to such issuance or deemed issuance, then such
Conversion  Price shall be lowered to a price equal to the quotient  obtained by
dividing  (i) an amount equal to the sum of (A) the product of (x) the number of
shares of Common Stock outstanding  immediately prior to such issuance or deemed
issuance  and  (y) the  then  existing  Conversion  Price,  and  (B)  the  total
consideration  received or deemed  received by the Company upon such issuance or
deemed issuance,  by (ii) the total number of shares of Common Stock outstanding
immediately  after such  issuance or deemed  issuance.  For the  purposes of any
adjustment of the  Conversion  Price pursuant to this  paragraph,  the following
provisions shall be applicable:

               (i) In the case of the  issuance  of Common  Stock for cash,  the
          consideration  shall be deemed to be the amount of cash paid  therefor
          without  deducting  therefrom  any  discounts,  commissions  or  other
          expenses allowed, paid or incurred by the Company for any underwriting
          or otherwise in connection with such issuance.

               (ii)  In  the  case  of  the  issuance  of  Common  Stock  for no
          consideration, the consideration shall be deemed to be $.01 per share.

               (iii)  In  the  case  of  the  issuance  of  Common  Stock  for a
          consideration  in whole or in part other than cash, the  consideration
          other than cash shall be deemed to be the fair market value thereof as
          determined  in good faith by the Board of Directors,  irrespective  of
          any accounting treatment.

               (iv) In the case of the issuance of options to purchase or rights
          to subscribe for Common Stock,  securities by their terms  convertible
          into or  exchangeable  for Common  Stock,  or options to  purchase  or
          rights to subscribe for such convertible or exchangeable securities:

                    (A) The shares of Common Stock  deliverable upon exercise of
               such options to purchase or rights to subscribe  for Common Stock
               shall be deemed to have been  issued at the time such  options or
               rights  were  issued  and  for  a  consideration   equal  to  the
               consideration  (determined in the manner  provided in clauses (i)
               through  (iii) above),  if any,  received by the Company upon the
               issuance  of such  options or rights  plus the  minimum  purchase
               price  provided  in such  options or rights for the Common  Stock
               covered thereby.

                    (B) The shares of Common Stock  deliverable  upon conversion
               of or in  exchange  for  any  such  convertible  or  exchangeable
               securities  or upon the exercise of options to purchase or rights
               to subscribe for such convertible or exchangeable  securities and
               subsequent  conversions  or exchanges  thereof shall be deemed to
               have been issued at the time such  securities were issued or such
               options or rights  were issued and for a  consideration  equal to
               the consideration received by the Company for any such securities
               and related  options or rights  (excluding  any cash  received on
               account  of accrued  interest  or  accrued  dividends),  plus the
               additional  consideration,  if any, to be received by the Company
               upon  the  conversion  or  exchange  of  such  securities  or the
               exercise of any related options or rights (the  consideration  in
               each case to be determined in the manner  provided in the clauses
               (i) through (iii) above).

                                        5

<PAGE>

                    (C) Upon any  change  in the  exercise  price of  shares  of
               Common  Stock  deliverable  upon  exercise of any such options or
               rights or  conversion  of or  exchange  for such  convertible  or
               exchangeable  securities,  other than a change resulting from the
               antidilution  provisions  thereof,  the Conversion Price shall be
               readjusted  to such  Conversion  Price as would have obtained had
               the adjustment made upon the issuance of such options,  rights or
               securities not converted  prior to such change been made upon the
               basis of such change.

                    (D) Upon  expiration  of any such  options  or  rights,  the
               termination  of any such  rights to convert or  exchange,  or the
               expiration of any options or rights  related to such  convertible
               or  exchangeable  securities,   the  Conversion  Price  shall  be
               readjusted  to such  Conversion  Price as would have obtained had
               such options, rights,  securities or options or rights related to
               such securities not been issued.

                    (E) No further  adjustments of the Conversion Price shall be
               made upon the actual  issuance  of such  Common  Stock or of such
               convertible  or  exchangeable  securities  upon  exercise of such
               options or rights,  or upon the actual  issuance  of such  Common
               Stock  upon  conversion  or  exchange  of  such   convertible  or
               exchangeable securities.

          (c) All  calculations  under this Section shall be made to the nearest
cent ($.01).

          (d) Whenever the Conversion Price shall be adjusted as provided above,
the Company shall deliver to the Holder a statement,  signed by its President or
Chief Financial  Officer,  showing in detail the facts requiring such adjustment
and the Conversion Price that shall be in effect after the adjustment.

     9. Adjustment of Shares. Following any Corporate Reorganization (as defined
below) after the Original Issue Date,  this Note shall be  convertible  into the
kind and number of shares of capital stock or other securities or property which
the Holder would have owned or have been entitled to receive with respect to the
Shares  had  this  Note  been  converted  immediately  prior  to such  Corporate
Reorganization.  The foregoing  provision  shall  similarly  apply to successive
Corporate  Reorganizations.  "Corporate  Reorganization"  means (i) any  capital
reorganization or  reclassification  of the capital stock of the Company,  other
than (A) a change in par value or from par  value to no par  value,  or (B) as a
result of a stock dividend or subdivision,  split-up,  or combination of shares,
and (ii) any  merger  or  consolidation  of the  Company  pursuant  to which the
stockholders of the Company are to receive cash, securities, or other properties
in exchange for the shares of capital stock of the Company then held by them.

     10.  Extension of Maturity.  Should the principal of or premium or interest
on this Note become due and payable on other than a business  day,  the maturity
thereof shall be extended to the next succeeding business day, and, with respect
to the interest on the principal,  interest shall be payable thereon at the rate
per annum herein specified during such extension.  The term "business day" shall
mean any day that is not a  Saturday,  Sunday or legal  holiday  in the State of
Delaware.

     11. Costs and Expenses.  The Company agrees to pay all reasonable costs and
expenses,  including  reasonable  attorneys'  fees,  incurred  by the  Holder in
collecting or enforcing this Note.

                                       6
<PAGE>

     12. No  Waivers.  No delay by the Holder in  exercising  any power or right
hereunder shall operate as a waiver of any power or right,  nor shall any single
or partial  exercise of any power or right  preclude  other or further  exercise
thereof, or the exercise of any other power or right hereunder or otherwise.

     13.  Transfer of Note.  Subject to the  restrictions  on transfer set forth
herein and in the Subscription Agreement, this Note and all rights hereunder are
transferable  in whole or in part.  Any transfer shall be effected by the Holder
in person or by duly  authorized  attorney by surrendering  this Note,  properly
endorsed,  at the office of the Company.  Each taker and holder of this Note, by
taking or holding the same,  consents  and agrees that this Note shall be deemed
negotiable, and, when appropriately endorsed the holder hereof may be treated by
the Company and all other persons  dealing with this Note as the absolute  owner
hereof  for any  purposes  and as the person  entitled  to  exercise  the rights
represented by this Note, or to the transfer hereof on the books of the Company,
any notice to the  contrary  notwithstanding;  but until such  transfer  on such
books,  the Company may treat the  registered  holder hereof as the owner hereof
for all purposes, any notice to the contrary notwithstanding.

     14.  Governing  Law.  This Note  shall be  governed  by and  construed  and
enforced  in  accordance  with  the  laws of the  State  of  Colorado.  Whenever
possible,  each provision of this Note shall be interpreted in such manner as to
be effective and valid under  applicable  law, but if any provision of this Note
shall be prohibited by or invalid under  applicable law, such provision shall be
ineffective  only to the  extent  of such  prohibition  or  invalidity,  without
invalidating the remainder of such provision or the remaining provisions of this
Note.

     15. Notices. All notices,  demands or other communications  hereunder shall
be in writing and shall be deemed  given when  delivered  personally,  mailed by
certified mail, return receipt requested,  sent by overnight courier service, or
telecopied  (transmission  confirmed  and a  copy  sent  by  personal  delivery,
certified mail or overnight courier service) to the following  addresses or such
other address as may be designated in writing by either party in accordance with
the terms of this provision:

          Holder:
                         ------------------------
                         ------------------------
                         ------------------------
                         ------------------------
                         Telecopier:
                                    -------------

          The Company:   Barringer Laboratories, Inc.
                         15000 West 6th Avenue
                         Suite 300
                         Golden, Colorado 80401-5047
                         Telecopier: (303) 277-1689

                                       7

<PAGE>

     IN WITNESS  WHEREOF,  the Company has caused  this  Convertible  Note to be
issued as of the date first set forth hereinabove.

                                             BARRINGER LABORATORIES, INC.

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

                                       8

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