Document:

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Exhibit 10.10

Exhibit 10.10       Resellers Agreement between Rogers Wireless Inc. and
Innofone Canada Inc., dated as of April 20, 2000

RESELLER AGREEMENT

BETWEEN

ROGERS WIRELESS INC.

and

INNOFONE CANADA INC.

                              DATED APRIL 20, 2000

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                                TABLE OF CONTENTS

DEFINITIONS

5
-
1.1      DEFINITIONS

         5
         -
1.2      GENDER.
         7
         -
1.3      HEADINGS.
         7
         -
1.4      SCHEDULES.
         8
         -
1.5      EFFECTIVE DATE.
         8
         -
APPOINTMENT OF RESELLER

8
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2.1      APPOINTMENT AS RESELLER.
         8
         -
2.2      RESALE MARKET.
         8
         -
2.3      COMPETITION.

         8
         -
2.4      NO RIGHTS TO ROGERS' FACILITIES.
         8
         -
ROGERS SERVICES

9
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3.1      PROVISION OF SERVICE.
         9
         -
3.2      LIMITATIONS ON SERVICE.
         9
         -
3.3      LIMITATIONS ON ROAMING SERVICE.
         9
         -
3.4      REASSIGNMENT OF/NO PROPERTY IN NUMBERS.
         10
         --
3.5      LACK OF PRIVACY.
         10
         --
3.6      DESIGN OF ROGERS FACILITIES.
         10
         --
3.7      CHANGES TO SERVICES.
         10
         --
3.8      ACTIVATION/DEACTIVATION.
         10
         --
3.9      DIRECTORY LISTINGS.
         11
         --
3.10     OPERATOR ASSISTANCE.
         11

RESTRICTIONS ON USE OF SERVICE

         11
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4.1      ABUSE OR FRAUDULENT USE.
         11
         --
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4.2      CANCELLATION OF SERVICE TO END USER.
         12
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4.3      INTERFERENCE.

         12
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RATES AND TERMS OF PAYMENT

         12
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5.1      RATES.
         12
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5.2      PAYMENT OF CHARGES.
         12
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5.3      BILLING RECORDS

         13
         --
5.4      TIME OF PAYMENT

         13
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5.5      DISPUTED CHARGES.
         13
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5.6      SECURITY.
         14
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5.7      MIGRATION PROTECTION

         15
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EQUIPMENT

         15
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6.1      EQUIPMENT.
         15
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6.2      SUPPLY TERMS.
         15
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RESELLER'S OBLIGATIONS

         16
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7.1      OBLIGATIONS TO END USERS.
         16
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7.2      ETHICAL RESPONSIBILITIES.
         16
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7.3      RESPONSIBILITY FOR ACTIONS OR OMISSIONS

         16
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7.4      RESPONSIBILITY FOR AGENTS.
         17
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7.5      CONTRACTS WITH END USERS

         17
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7.6      RESELLER OPERATIONS MANUAL

         18
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7.7      INTERFERENCE WITH ROGERS DEALERS/CUSTOMERS

         18
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7.8      MINIMUM NUMBER OF CUSTOMERS.
         19
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7.9      COMMITMENT.

         19
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7.11     RIGHT OF FIRST OFFER

         19
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ROGERS' OBLIGATIONS

20
--

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8.1      SERVICE.
         20
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8.2      REGULATORY APPROVAL

         20
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8.3      NOTICE OF MATERIAL CHANGE IN SERVICE.
         20
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LIMITATION OF LIABILITY/INDEMNITY/INSURANCE

         20
         --
9.1      LIMITATION OF ROGERS' LIABILITY.
         20
         --
9.2      LIMITATION OF LIABILITY.
         21
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9.3      INDEMNITY AND INSURANCE

         22
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9.4      MAINTENANCE OF INSURANCE

         22
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NO WARRANTY

         22
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10.1     NO WARRANTY.

         22
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10.2     ACKNOWLEDGEMENT.
         23
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TERM AND TERMINATION

         23
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11.1     TERM.
         23
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11.2     TERMINATION BY ROGERS.
         23
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11.3     TERMINATION BY RESELLER.
         25
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11.4     USE OF INFORMATION UPON TERMINATION.
         25
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11.5     CONTINUING OBLIGATIONS

         25
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11.6     NO OBLIGATION FOR CONTINUING SERVICE TO END USERS

         25
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RIGHT OF FIRST REFUSAL

         26
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12.1     RIGHT OF FIRST REFUSAL

         26
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12.2     EXTENSION OF RIGHT OF FIRST REFUSAL.
         27
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TRADE NAME AND TRADEMARK

         27
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13.1     ROGERS' RIGHTS.
         27
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13.2     EQUIPMENT BRANDING.
         27
         --
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CONFIDENTIALITY

         28
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14.1     CONFIDENTIAL INFORMATION.
         28
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14.2     REMEDY FOR BREACH

         29
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RESTRICTIONS

         29
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15.1     RESTRICTION ON BUNDLING.
         29
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15.2     NON-SOLICITATION.
         29
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GENERAL

30
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16.1     RELATIONSHIP OF PARTIES.
         30
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16.2     NOTICES.

         30
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16.3     FORCE MAJEURE

         31
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16.4     FURTHER ASSURANCES.
         31
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16.5     WAIVER.
         31
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16.6     SUCCESSORS AND ASSIGNS

         31
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16.7     SEVERABILITY

         31
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16.8     TIME.
         32
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16.9     GOVERNING LAW

         32
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16.10    EXECUTION IN COUNTERPARTS.
         32
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16.11    SURVIVAL.

         32
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16.12    ENTIRE AGREEMENT

         32
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16.13    AMENDING THE AGREEMENT

         32
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16.14    REVIEW BY COUNSEL

         33
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INDEPENDENT INVESTIGATION

33
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<PAGE>

                               RESELLER AGREEMENT

This Agreement shall be effective as of the 20 day of April, 2000.

BETWEEN:

                ROGERS WIRELESS INC., a corporation incorporated
                under the laws of Canada

                (hereinafter referred to as "Rogers")

                - and -

                INNOFONE CANADA INC. a corporation incorporated
                under the laws of  Canada__

                (hereinafter referred to as "Reseller")

         WHEREAS Rogers is engaged in the business of providing a variety of
wireless communications services, including the Rogers Services (as defined
below);

         AND WHEREAS Reseller desires to purchase and resell access to and use
of the Rogers Services to (i) VISA customers of Canadian Imperial Bank of
Commerce ("CIBC") through CIBC's "Guaranteed Proof" program, (ii) VISA customers
of VISA Desjardin and (iii) other customers who participate in similar programs
as may be approved by Rogers from time to time, on the terms set out in this
Agreement;

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

                                    ARTICLE 1

                                   DEFINITIONS

<PAGE>

1.1      Definitions

         "Activate" means the establishment by Rogers of an initial connection
of a unit of Equipment to the Rogers Facilities, and "Activated" shall have a
corresponding meaning.

         "Affiliates" means a relationship which exists where one corporation is
a subsidiary of the other, or where both are subsidiaries of the same
corporation, or where each of them are controlled, directly or indirectly, by
the same person or corporation or group of persons and/or corporations. Control,
for the purposes hereof, means effective control and one corporation shall be a
subsidiary of another if the first referred to corporation is controlled
directly or indirectly by the other.

         "Agreement" means this reseller agreement and all schedules and
amendments to it. Allowed Migration Percentage" means, with respect to the
calendar year ending on (i) December 31, 2000, 16%, (ii) December 31, 2001, 18%,
and (iii) December 31, 2002, 20%.

         "Bundle" means the promotion, marketing or offering by Reseller of the
cellular services together with one or more other services or products, where
the fees for the cellular services are not separately set out (i.e. a single
price point) or where a customer is required to purchase more than one product
or service from Reseller.

         "Business Hours" means the hours during which Rogers offices are open
to conduct business as set out in the Reseller Operations Manual.

         "Deactivate" means the termination of the provision of the Rogers
Services with respect to a unit of Equipment.

         "End User" means a person or entity that (i) uses the Rogers Services
as a result of being offered the Rogers Services by Reseller, and (ii) that is
billed directly for the Rogers Services by Reseller as provided for in this
Agreement.

         "Equipment" means a receiving/transmitting device which has been
approved by

<PAGE>

(i) Industry Canada for use in Canada, and (ii) Rogers for use as an end-user
terminal in connection with the Rogers Services.

         "Monthly Migrated Customers" means, for any period of one month, the
total number New Customers during such period and who were formerly customers of
Rogers at any time during the period of three months prior to the commencement
of such monthly period.

         "Monthly Migration Percentage" means for any calendar month, the
quotient obtained by dividing the (i) Monthly Migrated Customers for such month,
by (ii) number of New Customers for such month.

         "New Customers" means, during any period, the aggregate of all
customers of Reseller that commenced receiving the Rogers Services during such
period, which would occur with respect to each customer once Rogers had
activated such customer's number in its billing system.

         "Number" means any telephone number or e-mail address, assigned to
Reseller by Rogers

and associated with the Equipment of Reseller or its End Users, enabling use of
the Rogers Facilities.

         "Person" includes an individual, partnership, firm, body corporate or
government body or department thereof and the legal representatives of such
person.

         "Reseller Operations Manual" means the rules, policies and procedures
governing the operations of Reseller and the performance of its obligations
hereunder, as the same may be issued or amended from time to time by Rogers,
with any amendment becoming effective for the purposes of this Agreement upon
receipt by Reseller of written notice thereof. The initial Reseller Operations
Manual is attached hereto as Schedule "C".

         "Rogers Facilities" means the telecommunications switching equipment,
cell site transceiver equipment and other equipment maintained, expanded,
modified or replaced by Rogers to provide the Rogers Services.

         "Rogers Services" means the cellular radio-based telecommunications
services, both analogue and digital, offered by Rogers from time to time using
the

<PAGE>

Rogers Facilities, including Personal Communications Services (PCS), and which
Rogers is authorized or permitted by the appropriate regulatory authorities to
provide in Canada.

         "Service Area" means the geographic locations in which the Rogers
Services are available from time to time.

         "Unauthorized Use" means any use of the Rogers Facilities or any
Equipment or Number by any Person in any abusive or fraudulent manner or in a
manner that has not been authorized by Rogers, including but not limited to the
modification of the electronic serial number (ESN) originally installed by the
manufacturer in a cellular phone (which shall include the practices generally
referred to as "counterfeiting", "cloning fraud" or "tumbling fraud") or
engaging in any of the practices referred to in Section 4.1.

         "VISA Customers" means VISA customers of (i) CIBC that participate in
CIBC's "Guaranteed Proof" program, and (ii) VISA Desjardin that participate in
VISA Desjardin's "Aim to Save" program.

1.2      Gender.

         Except where the context otherwise indicates, words importing the
singular number only shall include the plural, and vice versa, and words
importing the masculine gender shall include the feminine gender.

1.3      Headings.

         The headings of all Articles or Sections herein are inserted for
convenience of reference only and shall not affect the construction or
interpretation hereof.

1.4      Schedules.

         The following are the Schedules attached to and incorporated in this
Agreement by reference and deemed to be part hereof:

         Schedule "A"               - Pricing
         Schedule "B"               - Billing Information
         Schedule "C"               - Reseller Operations Manual

<PAGE>

         Schedule "D"               - Reseller Supply Terms

1.5      Effective Date.

         There shall be no agreement, oral or written, between the parties set
forth in this document with respect to the provisions set forth herein until
Reseller shall have signed and delivered two copies of this Agreement to Rogers
and two duly authorized signing officers of Rogers shall have executed this
Agreement and delivered a signed copy thereof to Reseller.

                                    ARTICLE 2

                             APPOINTMENT OF RESELLER

2.1      Appointment as Reseller.

         In reliance on the representations made by Reseller, Rogers hereby
appoints Reseller and Reseller agrees to act as an authorized reseller of the
Rogers Services upon the terms and conditions of this Agreement.

1.2      Resale Market.

         Reseller agrees that it shall resell the Rogers Services and the
Equipment purchased in accordance with this Agreement only to (i) VISA Customers
, and (ii) other customers who participate in similar programs as may be
approved by Rogers in writing from time to time in its sole discretion.

2.3      Competition.

         Rogers reserves the right to appoint other persons as resellers of the
Rogers Services in any area at any time and to itself engage, directly or
indirectly in the solicitation of customers and the sale of the Rogers Services
in competition with Reseller.

2.4      No Rights to Rogers' Facilities.

<PAGE>

         No provision of this Agreement shall be construed as vesting in
Reseller any control or ownership interest whatsoever in any equipment,
facilities or operations of Rogers including the Rogers Facilities.

                                    ARTICLE 3

                                 ROGERS SERVICES

3.1      Provision of Service.

         Rogers agrees to provide the Rogers Services to End Users with respect
to whom Reseller has requested the provision of the Rogers Services in
accordance with the provisions of this Agreement. In this regard, Rogers shall
register on the Rogers Facilities Equipment used by such End Users and provide
the Rogers Services to such End Users during the term of this Agreement, unless
it is notified by Reseller to cease the provision of the Rogers Services to such
End Users as specified in such notice. Reseller agrees to inform its End Users
of the Service limitations contained in this Section.

3.2      Limitations on Service.

         Reseller acknowledges and agrees that the Rogers Services are made
available to End Users only when their Equipment is in operating range of the
Rogers Facilities. The Rogers Services may be temporarily refused, interrupted,
or limited because of: (i) limitations to the Rogers Facilities; (ii)
transmission limitations caused by atmospheric, topographical or other factors
reasonably outside of Rogers' control; or (iii) equipment modifications,
upgrades, relocations, repairs, and other similar activities necessary for the
proper or improved operation of the Rogers Services. Individual calls may be
involuntarily disconnected for a variety of reasons, including without
limitation atmospheric conditions, topography, weak batteries, system over-
capacity, movement outside a Service Area and gaps in coverage within a Service
Area.

3.3      Limitations on Roaming Service.

<PAGE>

         Rogers will use reasonable commercial efforts to provide the same
roaming service to End Users that is available to Rogers' other customers.
Notwithstanding  the preceding sentence,
Rogers, or another entity with which Rogers has a roaming agreement, may in its
sole discretion suspend roaming privileges to any end User if it discovers or
suspects that the Numbers assigned to such End-User are being used in a
fraudulent manner. Rogers agrees to use reasonable commercial efforts to provide
Reseller with prior or prompt subsequent, notification of any such suspension of
roaming service; provided, however, that Rogers shall have no liability arising
out of any failure to notify Reseller.

3.4      Reassignment of/No Property in Numbers.

         Reseller acknowledges that Rogers may be required to change or reassign
Numbers previously provided to Reseller from time to time. Rogers will endeavour
to provide Reseller with notice of the intended change in advance of making any
such change. Reseller agrees to inform its End Users of the provisions of this
Section, and further acknowledges and agrees that neither it nor any End User
shall have or acquire any proprietary right in any specific Number provided by
Rogers.

3.5      Lack of Privacy.

         Reseller acknowledges, and shall inform all End Users, that (i) it is
possible for third parties to monitor voice and data traffic over the Rogers
Facilities and privacy cannot be guaranteed, (ii) if Reseller or an End User
desires to secure transmission of data, Reseller or such End User must provide
for its own means of data encryption, and (iii) Reseller and the End User assume
full responsibility for the establishment of appropriate security measures
(including, without limitation, the selection of passwords and the like) to
control access to their own respective Equipment and information.

<PAGE>

3.6      Design of Rogers Facilities.

         Reseller acknowledges and agrees that the design, engineering and
construction of the Rogers Facilities is entirely within Rogers' discretion and
Rogers is under no obligation to make any additions or modifications to the
Rogers Facilities to accommodate the needs or desires of Reseller or its End
Users.

3.7      Changes to Services.

         Reseller acknowledges and agrees that the Rogers Services being
provided shall be subject to such modifications, additions and deletions as
Rogers may determine from time to time.

3.8      Activation/Deactivation.

(1) Rogers will use reasonable commercial efforts to Activate the Equipment of
End Users to the Rogers Facilities within four (4) Business Hours of Rogers'
receipt of a request from Reseller for the provision of the Rogers Services in
accordance with the procedures set out in this Agreement and the Reseller
Operations Manual.

(2) Rogers will use reasonable commercial efforts to Deactivate the Equipment of
End Users from the Rogers Facilities within four (4) Business Hours of Rogers'
receipt of a request from Reseller to effect such Deactivation in accordance
with the procedures set out in this Agreement and the Reseller Operations
Manual.

(3) Any requests from Reseller to Activate, Deactivate or make any change in the
Rogers Services will be accepted by Rogers only from Reseller, and not from
agents of Reseller or from End Users.

(4) Rogers shall use reasonable efforts to maintain a sufficient inventory of
Numbers in order to satisfy Reseller's requirements therefor from time to time.
If, at any time, Reseller requires an unusual number of Numbers in any
particular geographic location, it shall provide Rogers written notice of its
requirement for such Numbers not later than seventy-five (75) days prior to the
time when such Numbers are required. Failure to provide such a notice or
inaccurate forecasting could result in delays in receiving Numbers up to
seventy-five (75) days from the time of request.

<PAGE>

3.9      Directory Listings.

         Rogers does not provide a directory listing service for the Numbers. It
is the responsibility of Reseller or the End Users to obtain such directory
listings at its or their expense.

3.10     Operator Assistance.

         Rogers does not itself provide operator assistance to End Users, but
shall make available the operator assistance which is offered by the wireline
telephone companies, at the same rates as Rogers charges its retail customers.

                                    ARTICLE 4

                         RESTRICTIONS ON USE OF SERVICE

4.1      Abuse or Fraudulent Use.

         The Rogers Services are furnished by Rogers for use by Reseller and its
End Users in accordance with the terms of this Agreement and the Reseller
Operations Manual and subject to the condition that there will be no abuse or
fraudulent use thereof. Abuse and fraudulent use of the Rogers Services
includes, but is not limited to:

         (a)  attempting or assisting another to access, alte or interfere with
              the communications of and/or information about another customer;

         (b)  tampering with or making an unauthorized connection to the Rogers
              Facilities;

         (c)  using or assisting another to use any scheme, false representation
              or false credit device, or other fraudulent means or devices in
              connection with the Rogers Services;

         (d)  using the Rogers Services in such a manner so a to interfere
              unreasonably with the use of the Rogers Service by one or more
              other customers or End Users or to interfere unreasonably with
              Rogers' ability to provide the Rogers Service; or

<PAGE>

         (e)  using the Rogers Services to convey information that is obscene,
              salacious, prurient or unlawful.

4.2      Cancellation of Service to End User.

         If Rogers determines that any End User has engaged in any Unauthorized
Use of the Rogers Services, Rogers may Deactivate such End User from the Rogers
Services. Further, Rogers reserves the right to disconnect or suspend the Rogers
Services to any Equipment that Rogers believes may not function properly on, or
that may adversely affect the operation of the Rogers Facilities.

4.3      Interference.

         The parties understand that from time to time one or more End Users may
interfere with the Rogers Facilities in such as way as to impair the quality of
the Rogers Services. Upon either party's discovery of any such abuse by an End
User, such party shall promptly notify the other party, and Reseller shall
immediately order the End User to cease from engaging in such act(s) of
interference. Rogers shall have the right to discontinue the Rogers Service to
that End User should such act(s) continue. Reseller shall assist Rogers in
taking all actions reasonably necessary to prevent any further interference.

                                    ARTICLE 5

                           RATES AND TERMS OF PAYMENT

5.1      Rates.

(1)      Rogers agrees to sell to Reseller, and Reseller agrees t purchase from
         Rogers, the Rogers Services at the rates and on the terms and
         conditions described in Schedule "A".

(2)      For purposes of calculating volume-based charges in accordance with the
         pricing with respect to Rogers Services as set out on Schedule "A".

5.2      Payment of Charges.

<PAGE>

  (1) Without limiting the generality of Section 5.1, Reseller agrees to pay to
Rogers all fees and other charges as set forth in Schedule "A" for each Number
assigned to Reseller, including, without limitation:

         (a)  the applicable charges for all calls originatin from, and all
              charged calls accepted by an End User using, Equipment that uses
              Numbers assigned to Reseller;

         (b)  the applicable charges for all services of othe telecommunications
              carriers and the exercise of roaming privileges in those areas
              served by other cellular telephone system operators with whom
              Rogers has roaming agreements; and

         (c)  any minimum charges, early cancellation fees an other charges.

(2)      Reseller shall be responsible for all charges associated with any
         Equipment that is stolen, lost or destroyed until such time as Rogers
         is notified of any such theft, loss or destruction in accordance with
         the procedures outlined in the Reseller Operations Manual.

(3)      No compensation or adjustment will be made to rates and charges owing
         by Reseller in the event of any refusal or interruption of service or
         equipment.

(4)      Reseller agrees to pay all applicable taxes in connectio with the
         transactions set out in this Agreement.

5.3      Billing Records

         Reseller shall keep accurate books and records of all amounts owing to
it by its customers and by it to Rogers and of all calculations of such amounts.
Reseller agrees to provide monthly reports to Rogers of such items in a form
acceptable to Rogers. Unless otherwise specified by Rogers, such reports with
respect to a month shall be provided to Rogers contemporaneously with the
monthly payment for such month as set out in Section 5.4(1). In addition, Rogers
shall have the right to audit Reseller's books and records during normal
business hours in respect of all amounts owing under this Agreement and the
calculation thereof.

<PAGE>

5.4      Time of Payment

(1) Subject to Section 5.4(2), all amounts owing by Reseller to Rogers under
this Agreement with respect to any month shall be due on the 20th day of the
following month. Reseller agrees to pay to Rogers interest on all overdue
amounts at a rate of 1.5% per month (19.56% per annum) calculated and applied
monthly.

(2) In the event that a Reseller has incurred a material amount of non-recurring
charges or otherwise presents an unacceptable risk of loss to Rogers, as
determined by Rogers in its sole discretion, Rogers may request immediate
payment from Reseller on an interim basis. In such cases, the charges will be
considered past due three (3) days after Rogers demands payment thereof.

5.5      Disputed Charges.

(1) Reseller may provide Rogers with written notice of any disputed charges
within (i) 30 days, in the case of roaming charges, and (ii) 90 days, in the
case of all other charges, after the mailing date of the first invoice
containing such disputed charges. If Reseller fails to provide Rogers written
notice of any disputed charges within such time periods, Reseller shall have no
right to dispute such charges. Further, Reseller acknowledges and agrees that
sending such a notice of disputed charges does not excuse or defer Reseller's
obligations of full payment of the invoice in accordance with Section 5.4(1).
Rogers shall use reasonable commercial efforts to provide Reseller with its
determination with respect to disputed charges within 20 days after its receipt
of Reseller's notice of dispute and, if appropriate, will credit Reseller's
account.

(2) Without limiting the generality of any other provision hereof, it is
acknowledged that the failure of End Users to pay Reseller any amount or the
perpetration of any fraud or deceit upon Reseller or any direct or indirect
agent of Reseller shall not relieve Reseller of any of its obligations to pay
Rogers all amounts owing under Section 5.1.

5.6      Security.

(1)      Contemporaneously with the execution of this Agreement, Reseller shall
         provide to Rogers a security deposit or an irrevocable letter of credit
         in a form satisfactory to Rogers in the amount of $100,000 to secure
         the performance of Reseller's obligations under this Agreement and any
         other agreement between Rogers and Reseller. Thereafter, Reseller
         shall, upon Rogers' request, be obligated to increase the amount of
         such security deposit or replace such letter of credit such that the
         amount of the security deposit or letter of credit is equal to the
         value of the amount of charges incurred by Reseller hereunder during
         the three month period prior to such request. In the event that
         Reseller provides

<PAGE>

         Rogers with a cash deposit, Reseller hereby grants to Rogers a security
         interest in such deposit.

(2)      The provision of a deposit or letter of credit by Reseller does not in
         any way modify Reseller's obligations under this Agreement with respect
         to the payment of amounts due to Rogers. From time to time, Rogers may
         apply all or any part of the deposit or amount available under the
         letter of credit to sums due hereunder or to cure other breaches of
         this Agreement by Reseller. This right of setoff is in addition to all
         other rights and remedies available to Rogers under this Agreement or
         at law or in equity. Reseller shall restore the deposit or amount
         secured by the letter of credit to an amount that is acceptable to
         Rogers within ten days of Rogers' written notice to do so.

(3)      Any deposit paid to Rogers in accordance with Section 5.6(1) shall be
         held by Rogers without interest payable to Reseller. Upon the expiry or
         termination of this Agreement for any reason, Rogers shall have the
         right to apply the deposit or letter of credit against any outstanding
         balance in Reseller's account. In the event that there is no
         outstanding balance or it is less than the amount of the deposit, the
         deposit or the remainder of the deposit, as the case may be, shall be
         refunded to Reseller.

(4)      In the event that Reseller files for bankruptcy protection or an
         involuntary bankruptcy petition is filed against Reseller, Rogers and
         Reseller agree that Rogers shall be entitled to recoup against the
         deposit any sums that are owed by Reseller to Rogers at that time.
         Should Rogers seek relief from any stay in order to effect such
         recoupment, although such relief may not be required under applicable
         law, Reseller agrees to the entry of relief from the stay to allow
         Rogers to recoup the deposit and to raise no defences thereto. Rogers
         and Reseller agree that the deposit and Reseller's obligations under
         this Agreement arise out of the same transaction.

5.7      Migration Protection

         If at the end of each calendar year during the term of the Agreement,
the weighted average of the Monthly Migration Percentage for each month during
such year exceeds the Allowed Migration Percentage for such year, then Reseller
would pay to Rogers an amount equal to the product of A multiplied by B where:

<PAGE>

         A equals $200; and

         B equals the product of (i) the amount (expressed as a percentage) by
         which the weighted average of the Monthly Migration Percentage for each
         month during such year exceeds the Allowed Migration Percentage for
         such year, multiplied by (ii) the sum of all New Customers during such
         year.

                                    ARTICLE 6

                                    EQUIPMENT

6.1      Equipment.

(1)      Reseller shall ensure that any Equipment used by it, its agents, or its
         End Users in connection with the Rogers Services is approved by Rogers
         for use in connection with the Rogers Facilities and meets the
         standards of all applicable regulatory authorities. Rogers may, without
         liability, refuse to Activate or Deactivate any Equipment that does not
         comply with these standards.

(2)      Rogers shall not be responsible to Reseller or any End User for the
         installation, operation, quality of transmission, or testing and
         maintenance of any cellular telephone unit or cellular terminal
         equipment. Rogers shall have no obligation to sell or otherwise provide
         Equipment to Reseller's End Users.

6.2      Supply Terms.

(1)      Rogers agrees to supply certain Equipment described in Section 6.2(2)
         to Reseller from time to time in accordance with the Reseller Supply
         Terms attached hereto as Schedule "D"(as the same may be amended by
         Rogers at any time in its sole discretion upon notice to Reseller),
         provided, however, that if Rogers provides not less than sixty (60)
         days prior written notice to Reseller that it will no longer be
         supplying Equipment to its distributors of Rogers Services, then Rogers
         shall have no further obligation to supply Equipment to Reseller under
         this Section 6.2(1).

<PAGE>

         (2) During the term of the Reseller Agreement, Rogers agrees to make
the Nokia 5160 available to Reseller for a price of $99. Upon the request of
Reseller, Rogers agrees to make available for purchase by Reseller, cellular
phones of a particular make and model instead of such phone, which make and
model shall be determined from time to time by mutual agreement of the parties.
The price for such phones shall be determined by Rogers.

(3) In the event that a customer who has purchased a phone from Reseller and
such customer deactivates from the Rogers Facilities prior to the date that is
12 months following such customer's activation (the "Initial Term"), then
Reseller shall pay to Rogers an additional amount equal to the lesser of $200
and the amount determined by multiplying (i) the number of months (for the
purpose of this calculation, partial months shall be counted as full months)
from the date of such deactivation remaining in the Initial Term, by (ii) $20.
Also, if a phone purchased from Rogers is not activated by Reseller within 75
days of its purchase, then Reseller shall be required to pay Rogers' full retail
rate for such phone.

                                    ARTICLE 7

                             RESELLER'S OBLIGATIONS

7.1      Obligations to End Users.

(1) With respect to the matters covered by this Agreement, Rogers shall be
obligated only to Reseller and not to End Users. End Users shall not be deemed
to be third-party beneficiaries of this Agreement.

(2) Reseller shall be solely responsible to provide an adequate and properly
trained staff to receive and investigate any complaints from its End Users
relating to the Rogers Services. Reseller agrees to report any trouble with the
Rogers Services to Rogers immediately upon Reseller's reasonable verification
that such trouble is due to reasons other than the misuse or malfunctioning of
the End User's Equipment or the failure of such Equipment to meet the technical
standards for compatibility with the Rogers Service.

7.2      Ethical Responsibilities.

<PAGE>

         Neither party shall do anything that would tend to discredit,
dishonour, reflect adversely upon, or injure, in any manner, the reputation or
business of the other party, or in the case of Rogers, any other reseller, agent
or dealer of Rogers. Each party shall be governed in all its dealings with
respect to this Agreement by the highest standards of honesty, integrity, and
fair dealing.

7.3      Responsibility for Actions or Omissions

         Reseller shall be solely responsible for all risks and expenses
incurred in connection with its actions or omissions in the sale of the Rogers
Services or otherwise relating to this Agreement. Reseller shall act in all
respects on its own account, and shall be solely responsible for such things as
credit verification, deposits, billing, collection, consolidation, rebilling,
customer complaints, charges for usage, bad debts, and except as provided in the
Reseller Operations Manual, Unauthorized Use of any Number assigned to Reseller,
whether by Reseller, an End User, or any third party.

7.4      Responsibility for Agents.

         Reseller is responsible for the performance of its agents, if any, and
shall ensure that its agents are in compliance with any applicable terms of this
Agreement, and any other applicable industry standards.

7.5 Contracts with end Users

                           (2) Contract Required - Reseller agrees that each End
                  User will sign a contract containing the information
                  referenced in Sections 3.1, 3.4 and 3.5, together with
                  language similar in all material aspects to the subparagraphs
                  set forth below:

         (i)   [END USER] HAS NO PROPERTY RIGHT IN THE TELEPHONE ACCESS NUMBER
               OR E-MAIL ADDRESS, IF APPLICABLE.

         (ii)  [END USER] EXPRESSLY UNDERSTANDS AND AGREES THA IT HAS NO
               CONTRACTUAL RELATIONSHIP WHATSOEVER WITH UNDERLYING CARRIER AND
               THAT [END USER] IS NOT A THIRD PARTY BENEFICIARY OF ANY AGREEMENT
               BETWEEN [RESELLER] AND THE UNDERLYING CARRIER. IN

<PAGE>

               ADDITION, [END USER] EXPRESSLY UNDERSTANDS AND AGREES THAT THE
               UNDERLYING CARRIER SHALL HAVE NO LEGAL, EQUITABLE, OR OTHER
               LIABILITY OF ANY KIND TO [END USER]. REGARDLESS OF THE FORM OF
               THE ACTION, WHETHER FOR BREACH OF CONTRACT, WARRANTY, NEGLIGENCE,
               STRICT LIABILITY IN TORT OR OTHERWISE, END USER'S EXCLUSIVE
               REMEDY AND THE TOTAL LIABILITY OF THE UNDERLYING CARRIER ARISING
               IN ANY WAY IN CONNECTION WITH THIS AGREEMENT, FOR ANY CAUSE
               WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, ANY FAILURE OR
               DISRUPTION OF SERVICE PROVIDED HEREUNDER, IS LIMITED TO PAYMENT
               OF DAMAGES IN AN AMOUNT EQUAL TO THE PORTION OF THE FIXED MONTHLY

         (iii) CHARGE TO (END USER) FOR THE SERVICES RELATING TO THE PERIOD OF
               SERVICE DURING WHICH SAID DAMAGES OCCUR.

         (iv)  UNLESS CAUSED BY THE NEGLIGENCE OF [RESELLER] [END USER] SHALL
               INDEMNIFY AND HOLD HARMLESS THE UNDERLYING CARRIER SUPPLYING
               SERVICES TO [RESELLER], AND ITS OFFICERS, EMPLOYEES, AND AGENTS
               AGAINST ANY AND ALL CLAIMS, INCLUDING WITHOUT LIMITATION CLAIMS
               FOR LIBEL, SLANDER, INFRINGEMENT OF COPYRIGHT, OR PERSONAL INJURY
               OR DEATH, ARISING IN ANY WAY DIRECTLY OR INDIRECTLY IN CONNECTION
               WITH THIS AGREEMENT OR THE USE, FAILURE TO USE, OR INABILITY TO
               USE THE ACCESS TELEPHONE NUMBER. THIS INDEMNITY SHALL SURVIVE THE
               TERMINATION OF THIS AGREEMENT.

                        (2) Reseller may, at its option, include such other
               provisions or modify the foregoing provisions to apply to
               Reseller as well as to Rogers, so long as such additions or
               modifications do not mitigate the effect of the foregoing.

<PAGE>

7.6      Reseller Operations Manual

         Reseller shall at all times comply with the rules, policies, and
procedures and other matters set out in the Reseller Operations Manual,
including, without limitation, all fraud management procedures.

7.7      Interference with Rogers Dealers/Customers

         Reseller shall not contract with, enter into arrangements with or
otherwise deal with or accept subscriptions or sales leads from any Rogers
agent, dealer or sales representative. Similarly, Reseller shall not, directly
or indirectly, target Rogers' customers for the purpose of contracting them as
End Users.

<PAGE>

7.8      Minimum Number of Customers.

         Reseller agrees that during the period commencing eighteen months
following the date of this Agreement and ending on the expiry of this Agreement,
Reseller agrees to maintain at all times at least 10,000 End Users Activated to
the Rogers Facilities.

7.9      Commitment.

         Reseller shall be required to have not less than 5,000 Numbers
activated on the first anniversary of the date of the Agreement, 15,000 Numbers
activated on the second anniversary of the date of the Agreement, and 25,000
Numbers activated on the third anniversary of the date of the Agreement. If, on
any such anniversary, Reseller does not have the applicable Numbers activated as
set out above, then it would be required to pay to Rogers an amount equal to the
product of $20 and the amount by which the applicable number of Numbers for such
anniversary exceeds the actual number of Numbers activated by Reseller on such
anniversary date. Reseller acknowledges that any amounts that become payable by
it to Rogers pursuant to this Section 7.9 are a genuine pre-estimate of Rogers
damages in connection with the Retailer's failure to meet its commitments and
not a penalty. In addition to Rogers' right to receive such payments, if, on any
such anniversary, Reseller does not have the applicable Numbers activated as set
out above, then Rogers would be permitted to terminate the Reseller Agreement on
ten days written notice to Reseller.

7.10     Restrictions on Numbers.

         Reseller shall ensure that there is a single unique MIN/ESN or MAN
number combination, as applicable associated with each unit of Equipment.

7.11     Right of First Offer

(1)      In the event that Reseller wishes to offer, sell or resell any wireless
         communications services, including without limitation cellular/PCS,
         paging and data services, to any other person, then it would first
         offer Rogers the

<PAGE>

         opportunity to sell such services to Reseller for resale to such person
         on the terms specified in the Agreement or on other terms by notice in
         writing clearly specifying such terms.

(2)      Rogers agrees to notify Reseller within 15 days of receiving such
         notice whether it wishes to provide the services to Reseller on such
         terms. If Rogers notifies Reseller that such terms are not acceptable
         to Rogers, then during the period commencing on the date of Reseller's
         receipt of such notice from Rogers and ending 45 days thereafter, at
         Rogers' discretion, Reseller shall be obligated to negotiate in good
         faith terms for the provision of the services that are mutually
         agreeable.

(3)      If, after the end of such 45 day period, the parties are unable to
         agree on the terms for the sale by Rogers of such services to Reseller,
         then Reseller would be permitted to, but need not, obtain such services
         from a third party for purposes of offering, selling or reselling such
         services only such services only to such person, provided such services
         are obtained on terms no less favourable than the terms on which Rogers
         was willing to make such services available to Reseller.

(4)      If the services are not obtained from a third party within 90 days from
         the end of such thirty day period, then the above provisions would
         reapply.

                                    ARTICLE 8

                               ROGERS' OBLIGATIONS

8.1      Service.

         Rogers agrees to provide the Rogers Services to Reseller in accordance
with the terms and conditions specified in this Agreement. Rogers' obligation to
provide the Rogers Services is conditional upon Rogers' ability to obtain,
retain and maintain, without unreasonable expense, suitable facilities,
equipment, licenses and rights to provide the Rogers Services. Rogers'
obligation to provide the Rogers Services is further conditional upon Reseller's
compliance with the terms and conditions of this Agreement.

<PAGE>

8.2      Regulatory Approval.

         Rogers will use reasonable commercial efforts to obtain and comply with
all regulatory approvals and licences necessary to provide the Rogers Services.

8.3      Notice of Material Change in Service.

         Rogers agrees to use commercially reasonable efforts to provide advance
notice to Reseller of any material changes in the Rogers Services of either a
permanent or temporary nature.

                                    ARTICLE 9

                   LIMITATION OF LIABILITY/INDEMNITY/INSURANCE

9.1      Limitation of Rogers' Liability.

(1)      ROGERS' TOTAL LIABILITY WITH RESPECT TO ANY AND ALL CLAIMS, REGARDLESS
         OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE
         AND PRODUCT LIABILITY), STRICT LIABILITY OR
OTHERWISE, ARISING OUT OF OR IN CONNECTION WITH THE PERFORMANCE OR
NON-PERFORMANCE OF ANY OF ROGERS' OBLIGATION'S UNDER THIS AGREEMENT, OR THE USE
OF THE ROGERS SERVICES BY OR ON BEHALF OF RESELLER OR ANY END USERS SHALL NOT
EXCEED, WHERE APPLICABLE, RESELLER'S DIRECT DAMAGES, IF ANY, LIMITED SOLELY TO
THE PURCHASE PRICE ALLOCABLE TO SUCH ROGERS SERVICES AND PAID TO ROGERS WHICH
GIVES RISE TO THE CLAIM.

(2)      NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT, ROGERS, ITS
         AFFILIATES AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS
         AND DEALERS SHALL NOT BE LIABLE TO RESELLER FOR, AND RESELLER FOR
         ITSELF AND THE END USERS HEREBY WAIVES THE RIGHT TO

<PAGE>

         CLAIM ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL COST,
         LOSS, EXPENSE, DAMAGES OR LIABILITY OF ANY NATURE (INCLUDING WITHOUT
         LIMITATION LOSS OF PROFITS, OR REVENUE, LOSS OF DATA, COST OF CAPITAL,
         DOWN TIME COSTS, COSTS OF SUBSTITUTE GOODS OR SERVICES, LOSS OF
         BUSINESS OPPORTUNITIES OR LOSS OF PROPERTY) (i) ARISING OUT OF THE
         FAILURE OF THE ROGERS SERVICES TO OPERATE AT ANY TIME OR TIMES, OR (ii)
         ARISING OUT OF A THIRD PARTY'S UNAUTHORIZED ACCESS TO DATA OR VOICE
         COMMUNICATIONS TRANSMITTED OVER THE ROGERS FACILITIES OR THE
         COMPLETENESS OR ACCURACY OF SUCH DATA OR VOICE COMMUNICATIONS AND
         WHETHER OR NOT SUCH DAMAGES WERE FORSEEN OR UNFORSEEN.

(3)      NOTWITHSTANDING SECTION 9.1(1), ROGERS SHALL NOT BE LIABLE TO RESELLER,
         ANY END USER, OR ANY OTHER PERSON FOR ANY ACCIDENT OR INJURY CAUSED BY
         OR TO A VEHICLE, WATERCRAFT OR AIRCRAFT OWNED OR OPERATED BY AN END
         USER, SUCH END USER OR OTHER PERSON IF THE ACCIDENT RESULTED FROM THE
         OPERATION OR FAILURE OF EQUIPMENT.

9.2      Limitation of Liability.

         NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT, NEITHER PARTY,
ITS AFFILIATES AND THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS AND
DEALERS SHALL BE LIABLE TO THE OTHER PARTY FOR ANY DIRECT, INDIRECT, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL COST, LOSS, EXPENSE, DAMAGES OR LIABILITY OF ANY
NATURE (INCLUDING WITHOUT LIMITATION LOSS OF PROFITS, OR REVENUE, LOSS OF DATA,
COST OF CAPITAL, DOWN TIME COSTS, COSTS OF SUBSTITUTE GOODS OR SERVICES, LOSS OF
BUSINESS OPPORTUNITIES OR LOSS OF PROPERTY) IN CONNECTION WITH THIS AGREEMENT
WHETHER OR NOT SUCH DAMAGES WERE FORSEEN OR UNFORSEEN.

<PAGE>

9.3      Indemnity and Insurance

         Reseller agrees to indemnify and hold Rogers harmless against any and
all liabilities, claims, damages, costs or expenses (including legal fees and
expenses) directly or indirectly incurred by Rogers by reason of or arising out
of or relating to claims by End Users or to any acts, duties and obligations or
omissions of Reseller or of any personnel employed by, or agent of, Reseller and
Reseller shall, at the request of Rogers and at Reseller's expense, assume the
defence of any demands, claims, actions, suits or proceedings brought against
Rogers by reason thereof and pay any and all damages assessed against or that
are payable by Rogers as a result of the disposition of any such demands,
claims, actions, suits or proceedings. Notwithstanding the foregoing, Rogers may
be represented in any such demands, claims, actions, suits or proceedings by its
own counsel at the expense of Reseller. No settlement or compromise shall be
agreed to without the concurrence of Rogers.

9.4      Maintenance of Insurance

         Reseller shall maintain, in full force and effect, a comprehensive
general liability insurance policy or policies with personal injury liability
blanket, contractual liability and complete operations liability insurance
endorsements protecting Reseller, Rogers, its Affiliates and their respective
directors, officers and employees and representatives against any loss,
liability or expense due to personal injury, death or property damage or
otherwise arising out of or occurring in connection with the business of
Reseller. Rogers shall be named as an additional insured in such policy or
policies which shall be written by a responsible insurance company or companies
licensed to do business in the province in which Reseller conducts its business
and meeting with the reasonable approval of Rogers, with a combined single limit
of not less than Three Million ($3,000,000) Dollars for bodily injury or death
and for property damage. Such policy or policies shall provide that they will
not be cancelled or materially altered without at least sixty (60) days prior
written notice to Rogers. Within ten (10) days after execution of this
Agreement, Reseller shall furnish Rogers with a certificate or certificates of
such insurance, together with evidence that the premiums therefore have been
paid. Maintenance of such insurance and the performance by Reseller of its
obligations under this Section shall not relieve Reseller of liability under the
indemnity provisions hereinabove set forth in Section 9.3.

                                   ARTICLE 10

                                   NO WARRANTY

10.1     No Warranty.

<PAGE>

         ROGERS MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ROGERS
         SERVICES, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES AS TO
         MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, NOR DOES ROGERS
         WARRANT UNINTERRUPTED WORKING OF THE ROGERS SERVICES OR THE ROGERS
         FACILITIES, AND RESELLER SHALL MAKE NO WARRANTY, WRITTEN OR ORAL, ON
         ROGERS' BEHALF, AND NO EMPLOYEE OR REPRESENTATIVE OF ROGERS IS
         AUTHORIZED TO PERMIT RESELLER TO DO SO.

10.2     Acknowledgement.

         Reseller acknowledges that the Rogers Services may be interrupted
because of capacity or equipment limitations, equipment modifications, upgrades,
relocations and repairs and similar activities necessary for the proper
operation of the Rogers Facilities.

                                   ARTICLE 11

                              TERM AND TERMINATION

11.1     Term.

         This Agreement shall be effective commencing on the date indicated on
the first page of this Agreement and shall remain in force for a period of three
(3) years. In the event this Agreement expires, and the parties do not enter
into a new agreement governing the subject matter hereof and Rogers continues to
provide the Rogers Services to Reseller, this Agreement shall be deemed to
continue on a month-to-month basis until one party, upon thirty (30) days
written notice to the other, terminates this Agreement.

11.2     Termination by Rogers.

         (1)  Rogers may, immediately upon written notice, terminate this
              Agreement if:

              (a)    Reseller fails to pay any amount owed to Rogers when due
                     and

<PAGE>

                     such failure is not cured within five (5) days after
                     written notice of such failure is given to Reseller by
                     Rogers;

              (b)    Reseller fails to provide or maintain deposit or letter of
                     credit when required to do so pursuant to this Agreement
                     and such failure is not cured within ten (10) days of
                     written notice thereof;

              (c)    Reseller fails to abide by the terms and conditions of this
                     Agreement or any other agreement with Rogers and such
                     failure is not cured within ten (10) days of written notice
                     thereof;

              (d)    Reseller fails to meet its sales commitment in any calendar
                     year as set out in Section 7.9.

              (e)    Reseller provides false or misleading information to Rogers
                     in connection with any application for the Rogers Services;

              (f)    Reseller uses or permits an End User o other person to use
                     the Rogers Services or the Rogers Facilities in a manner
                     that adversely affects Rogers' operations or the use of the
                     Rogers Services by other customers;

              (g)    Reseller initiates proceedings for its winding up,
                     liquidation or dissolution, or takes action to become a
                     voluntary bankrupt, or consents to the filing of bankruptcy
                     proceedings against it or files a petition or answer or
                     consent seeking reorganization, readjustment, arrangement,
                     composition or similar relief under any bankruptcy law or
                     consents to the filing of such petition or consents to the
                     appointment of a receiver, liquidator, trustee or assignee
                     in bankruptcy or insolvency or makes an assignment for the
                     benefit of creditors, or admits in writing its inability to
                     pay its debts generally as they become due or commits any
                     other act of bankruptcy, or suspends transaction of its
                     usual business, or any action is taken against Reseller by
                     a third party in furtherance of any of the foregoing and
                     such action by a third party is not dismissed within thirty
                     (30) days;

              (h)    a material part of the assets used in the operation of
                     Reseller's

<PAGE>

                     wireless resale business are sold or conveyed to a wireless
                     carrier, reseller or dealer without the prior written
                     consent of Rogers;

              (i)    Reseller agrees to assign, purports to assign or is deemed
                     to have assigned this Agreement or if an assignment occurs
                     by operation of law, without the prior written consent of
                     Rogers;

              (j)    a wireless carrier, reseller or dealer acquires control of
                     Reseller without the prior written consent of Rogers; (k)
                     Reseller commits or participates in an fraudulent or
                     improper actions in the course of acting as a reseller of
                     the Rogers Service including, without limitation, the
                     intentional submission to Rogers of any false or fraudulent
                     claims for refund, credit, rebate, allowance, discount or
                     other payment;

              (l)    the conviction in any court of competent jurisdiction of
                     Reseller, key shareholders, director or officer of Reseller
                     for any crime or violation of law if, in the opinion of
                     Rogers, such conviction is likely to adversely affect the
                     operations or business of Reseller or tend to be harmful to
                     the goodwill or reputation of Rogers or the Rogers
                     Facilities; or

              (m)    any conduct or practice by Reseller, its directors,
                     officers, employees or key shareholders not already
                     enumerated above is in the reasonable opinion of Rogers
                     injurious to the goodwill or reputation of Rogers or the
                     Rogers Facilities.

                     (2) The termination of this Agreement or suspension of the
              Rogers Service in whole or part does not affect Reseller's
              obligation to pay any amount owing to Rogers.

11.3     Termination by Reseller.

         Reseller may, immediately upon written notice, terminate this Agreement
if:

              (a)    Rogers fails to abide by the terms and conditions of this
                     Agreement and such default is not cured within ten (10)
                     days of written notice thereof; or

<PAGE>

              (b)    Rogers initiates proceedings for its winding up liquidation
                     or dissolution, or takes action to become a voluntary
                     bankrupt, or consents to the filing of bankruptcy
                     proceedings against it or files a petition or answer or
                     consent seeking reorganization, readjustment, arrangement,
                     composition or similar relief under any bankruptcy law or
                     consents to the filing of such petition or consents to the
                     appointment of a receiver, liquidator, trustee or assignee
                     in bankruptcy or insolvency or makes an assignment for the
                     benefit of creditors, or admits in writing its inability to
                     pay its debts generally as they become due or commits any
                     other act of bankruptcy, or suspends transaction of its
                     usual business, or any action is taken against Rogers by a
                     third party in furtherance of any of the foregoing and such
                     action by a third party is not dismissed within thirty (30)
                     days.

11.4     Use of Information Upon Termination.

         If this Agreement expires or is terminated by Rogers pursuant to
Section 11.2, Rogers may use any information in its possession regarding
Reseller or the End Users in any manner whatsoever, so as to retain the End
Users as users of the Rogers Facilities, and without limiting the generality of
the foregoing, may contact End Users directly.

         11.5     Continuing Obligations

         Termination pursuant to the terms of this Agreement, regardless of
cause or nature, shall be without prejudice to any other rights or remedies of
the parties, and Reseller shall remain solely responsible for its obligations to
the End Users. The termination of this Agreement with or without cause shall not
release either party hereto from any liability which at the time of termination
has already accrued to the other party or which thereafter may accrue with
respect to any act or omission prior to termination, or from any obligation
which is expressly stated herein to survive termination. Rogers may, without
liability, cancel any previously accepted orders for Numbers which have not been
assigned to End Users on or before the date of termination.

<PAGE>

11.6     No Obligation for Continuing Service to End Users

         Upon termination, Rogers shall have no further obligation to provide
the Rogers Services to Reseller. However, in order to avoid disruption of the
Rogers Services to End Users, Rogers may, in its discretion, continue the Rogers
Services directly to any End User who meets Rogers' credit requirements and
enters into a contract for the Rogers Services with Rogers. Such continuation of
the Rogers Services shall not entitle Reseller to any compensation. Upon
termination, Rogers may re-route calls using any Numbers previously assigned to
Reseller so that any attempts to access the Rogers Services will result in
connection to Rogers, which will advise callers how they may obtain the Rogers
Services directly from Rogers.

                                   ARTICLE 12

                             RIGHT OF FIRST REFUSAL

12.1     Right of First Refusal

(1)      Reseller agrees that it will not transfer (i) the wireless
         communications business of Reseller operated in accordance with this
         Agreement, (ii) the customer lists or End User service accounts, or a
         significant portion of the assets of Reseller used in connection with
         such business, or (iii) control (as such term is defined in the
         Business Corporations Act (Ontario)) of a permitted assignee of this
         Agreement without first complying with this Section 12.1.

(2) In the event that Reseller receives a bona fide cash offer in writing from
an arm's-length purchaser to purchase (i) the wireless communications business
of Reseller operated in accordance with this Agreement or all or a significant
portion of the assets of Reseller, (ii) the customer lists or End User service
accounts, or a significant portion of the assets of Reseller used in connection
with such business, or (iii) a controlling interest in the shares of a permitted
assignee of this Agreement (an "Offer"), which Offer Reseller is prepared to
accept, Reseller shall first offer to Rogers the opportunity to purchase the
said business, assets or securities for the same cash consideration as is
contained in the Offer.

<PAGE>

(3) If Rogers elects to purchase the business, assets or securities, as the case
may be, such purchase and sale shall be completed on the terms and conditions
contained in the Offer. In the event that Rogers fails to advise Reseller in
writing within thirty (30) days following such Offer that it agrees to purchase
the said business, assets or securities on the same terms and conditions as are
contained in the Offer, then Reseller may complete the sale under the Offer upon
the terms and conditions contained in the Offer during a period of ninety (90)
days following the lapse of such thirty (30) day period.

(4) If Reseller completes the sale under the Offer to such third party as
provided above, Reseller may assign its rights and obligations under this
Agreement to such third party with Rogers' prior written consent, which shall
not be unreasonably withheld or delayed by Rogers. Without limiting the
generality of the foregoing, Rogers may withhold its consent to any such
assignment if the third party purchaser:

         (a)  has not agreed in writing to be subject to all of the terms and
              conditions of this Agreement, mutatis mutandis, including this
              Section 12.1,as if said purchaser had executed this Agreement and
              such other conditions as Rogers may reasonably require;

         (b)  has not provided such financial information as Rogers may
              reasonably require, together with a letter of credit or security
              deposit in an amount that Rogers determines, in its discretion
              acting reasonably, is necessary to secure such third party's
              present and future obligations under this Agreement; or

         (c)  is a reseller, dealer or is a carrier of wireless communications
              products or services.

(5) If such sale pursuant to the Offer is not completed within the ninety (90)
day period specified above, the right of Reseller to sell its business, assets
or securities hereunder pursuant to the Offer shall be terminated and this
Section shall again apply to any such proposed sale of such business or assets,
and so on from time to time.

12.2     Extension of Right of First Refusal.

<PAGE>

         Section 12.1 hereof shall survive the termination of this Agreement by
a period of one hundred and twenty (120) days.

                                   ARTICLE 13

                            TRADE NAME AND TRADEMARK

13.1     Rogers' Rights.

         Reseller recognizes the right, title and interest of Rogers and its
Affiliates through ownership or licence in and to all service marks, trademarks
and trade names used by Rogers in connection with the Rogers Services (the
"Marks"). Reseller agrees not to engage in any activities or commit any acts,
directly or indirectly, which may contest, dispute, or otherwise impair such
right, title and interest of Rogers and its Affiliates therein. Reseller has no
rights to the Marks, shall not use the Marks and shall not refer to "Rogers" or
"AT&T" in connection with the Rogers Service, without the express prior written
consent of Rogers. Reseller shall not acquire or claim any right, title or
interest in or to the Marks through the resale of the Rogers Services or
otherwise. Reseller is specifically prohibited from incorporating any of the
Marks into its own service marks, trademarks and trade names or from using any
service mark, trademark or trade name which is confusingly similar to any of the
Marks.

13.2     Equipment Branding.

         Without limiting the generality of Section 13, Reseller agrees that it
shall, at its sole cost and expense, remove the Marks, including the "Rogers
AT&T" label, from all Equipment sold to End Users and arrange for the
re-programming of all Equipment to remove references to the Marks.

                                   ARTICLE 14

                                 CONFIDENTIALITY

14.1     Confidential Information.

(1) Each party agrees that any and all information, written or oral, which is
proprietary or confidential in nature and which is disclosed by a party to the
other party concerning the business

<PAGE>

or affairs of the receiving party, shall be treated as confidential and that
such information shall not be disclosed during the term of this Agreement or at
any time thereafter, directly or indirectly, to any other person, firm or
corporation without the prior written consent of the disclosing party.
Notwithstanding the foregoing, nothing in this section shall preclude the
receiving party from disclosing or using confidential information if it can
demonstrate that the information:

         (a)  is publicly available prior to the date of this Agreement;

         (b)  becomes publicly available after the date of this Agreement
              through no wrongful act of the receiving party;

         (c)  is furnished to others by the disclosing party without similar
              restrictions on their right to use or disclose;

         (d)  is rightfully known by the receiving party without any proprietary
              restrictions at the time of receipt of such information from the
              disclosing party or becomes rightfully known to the receiving
              party without proprietary restrictions from a source other than
              the disclosing party;

         (e)  is independently developed by the receiving party by persons who
              did not have access, directly or indirectly, to the information;
              or

         (f)  is obligated to be produced under order of a court of competent
              jurisdiction or a valid administrative or congressional subpoena,
              provided that the receiving party promptly notifies the disclosing
              party of such event so that the disclosing party may seek an
              appropriate protective order.

         (2)  Nothing in this Section 14.1 shall prohibit Rogers from disclosing
              any information concerning End Users to:

         (a)  another telecommunications carrier or other person providing
              services to a telecommunications carrier, provided the information
              is to be used for the establishment of, or the efficient and cost
              effective provision of services to the End User or Reseller and
              disclosure is made on a confidential basis with the information to
              be used solely for that purpose;

         (b)  an agent retained by Rogers to collect outstanding balances owed
              to Rogers by Reseller, or to perform other administrative
              functions for Rogers, provided that the information is released
              solely for those purposes; or

         (c)  to a law enforcement agency whenever Rogers has reasonable grounds
              to believe that Reseller or an End User has knowingly supplied
              Rogers with false or misleading information or Reseller or an End
              User is otherwise involved in unlawful activities.

<PAGE>

14.2     Remedy for Breach

         Each receiving party acknowledges that damages would not be an adequate
remedy for any breach of this Agreement by the receiving party or its
Representatives and that the disclosing party may obtain injunctive or other
equitable relief to remedy or prevent any breach or threatened breach of this
Agreement by the receiving party or any of its Representatives. Such remedy
shall not be deemed to be the exclusive remedy for any such breach of this
Agreement, but shall be in addition to all other remedies available at law or in
equity to the disclosing party.

                                   ARTICLE 15

                                  RESTRICTIONS

15.1     Restriction on Bundling.

         Reseller agrees not to Bundle the Rogers Services with a product or
service that is:

         (a)  the same or similar to any wireless communications product or
              service that is offered by Rogers;

         (b)  a broadcast distribution product or service including, without
              limitation, direct to home satellite service, multi-channel,
              multi-point distribution service, or any other cable distribution
              service; or

         (c)  a high speed internet access service.

15.2     Non-Solicitation.

         Rogers and Reseller acknowledge and agree that the primary purpose of
this Agreement is to expand the cellular marketplace. Reseller accordingly
agrees that it will not knowingly directly solicit existing customers of Rogers
for the purpose of selling the Rogers Services to such customers. Similarly,
Reseller agrees that it shall not solicit or appoint the dealers, agents or
other distributors and sales representatives of Rogers as representatives of
Reseller for the purpose of selling the Rogers Services to prospective End
Users.

                                   ARTICLE 16

                                     GENERAL

16.1     Relationship of Parties.

<PAGE>

         Nothing in this Agreement shall be construed as in any way placing
either party in the position of an agent of the other party and neither party
shall have the power to bind the other party or to contract in the name of or
create a liability against the other party in any way for any purpose. Neither
party shall be responsible for the acts or defaults of the other party or any of
the other party's employees or agents. This Agreement does not create a
partnership or joint venture between the parties. The relationship of the
parties is that of independent contractors.

16.2     Notices.

         Any notice, waiver or other document or communications required or
permitted to be given to any party under this Agreement shall be validly given
only if in writing and if delivered personally or by over-night courier or if
telecopied to that party at the following address:

To Rogers:                       Rogers Wireless Inc.
                                 One Mount Pleasant Road
                                 Toronto, Ontario
                                 M4Y 2Y5
                                 Telecopier No.: (416) 935-7758
                                 Attention:  General Manager, Resale

with a copy sent to:             Rogers Wireless Inc.
                                 One Mount Pleasant Road
                                 Toronto, Ontario
                                 M4Y 2Y5
                                 Telecopier No.: (416) 935-762
                                 Attention: Legal Department

To Reseller:                     Innofone Canada Inc._________________________
                                 Suite 4 - 241 Applewoood Crescent______________
                                 Vaughan, Ontario  L4K 4E6____________________
                                 Telecopier No.: (416) 207-0334_________________
                                 Attention: Larry Hunt, CEO

         Any such notice delivered or telecopied as aforesaid shall be deemed to
have been given or made on the date on which it was telecopied or, if delivered,
on the day following delivery, as the case may be. Any party may at any time
give notice in writing to the other party of any change of address of the party
giving such notice and from and after the giving of such notice the address
therein specified shall be deemed to be the address of such party for the giving
of notice hereunder.

16.3     Force Majeure

<PAGE>

         Rogers shall promptly notify Reseller in writing of any situation or
event arising from circumstances beyond its control and which it could not
reasonably foresee which prevent Rogers from carrying out in whole or in part
its obligations under this Agreement. Upon the occurrence of such a situation or
event the Rogers Services shall be deemed to be postponed for a period of time
equal to that caused by the force majeure event and a reasonable period to
remobilize for the continuation of the Rogers Services.

16.4     Further Assurances.

         The parties agree to do all such things and to execute such further
documents as may reasonably be required to give full effect to this Agreement.

16.5     Waiver.

         No provision of this Agreement shall be deemed waived by a course of
conduct unless such waiver is in writing signed by all parties and stating
specifically that it was intended to modify this Agreement.

16.6     Successors and Assigns

         This Agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective successors and assigns. Neither this
Agreement, nor any of the rights or obligations of the parties hereunder may be
assigned by Reseller without the prior written consent of Rogers. Any request
for assignment shall be accompanied with reasonably detailed terms of the
proposed assignment (including copies of relevant proposed agreements) and such
financial information pertaining to the proposed assignee and, if applicable,
the shareholders thereof, as Rogers may request. This Agreement shall be deemed
to be assigned by Reseller in the event of a change, directly or indirectly, in
the ultimate effective control of Reseller from those persons having such
control at the date hereof, but no such assignment shall relieve Reseller of
their covenant hereunder.

16.7     Severability

         If any term or provision of this Agreement shall to any extent be found
to be invalid, void or unenforceable, the remaining terms and provisions shall
nevertheless continue in full force and effect.

16.8     Time.

         Time shall be of the essence hereof.

16.9     Governing Law

<PAGE>

         This Agreement shall be construed and enforced in accordance with the
laws of the Province of Ontario and the parties hereto irrevocably attorn to the
exclusive jurisdiction of the courts of such Province. This Agreement and the
parties' obligations hereunder, are also subject to any orders, rules and
regulations issued by any regulatory authority having jurisdiction over the
Rogers Service.

16.10    Execution in Counterparts.

         This Agreement may be executed in one or more counterparts, each of
which so executed shall constitute an original and all of which together shall
constitute one and the same agreement.

16.11    Survival.

         The terms of Sections 5.1, 5.2, 5.5, 5.6, 11.4, 11.5, 11.6, 12.1, and
12.2 and Articles 9, 10, 13 and 14 shall survive any termination or expiry of
this Agreement and shall continue in force thereafter for the period
contemplated by the Agreement or indefinitely if no such period is specified.
Other provisions of this Agreement which, by the nature of the rights or
obligations set out therein, might reasonably be expected to be intended to so
survive, shall survive termination or expiry of this Agreement until they are
satisfied or by their nature expire.

16.12    Entire Agreement

         This Agreement, including the schedules hereto, constitutes the entire
agreement of the parties relating to the subject matter hereof and supersedes
all prior agreements, understandings, negotiations, memoranda, correspondence
and discussions, whether written or oral, relative to the subject matter hereof.
Except as otherwise specifically set forth in this Agreement, neither party
makes any representation, warranty or condition express or implied, collateral,
or otherwise to the other.

16.13    Amending the Agreement

         This agreement may not, except as provided herein, be amended or
modified except by a written instrument executed by both parties, provided
however that Rogers shall have the right upon thirty (30) days written notice to
the Reseller to amend any or all of the Schedules hereto in any respect.

16.14    Review by Counsel

         The parties acknowledge that their respective legal counsel have
reviewed and participated in settling the terms of this Agreement, and that any
rule of construction to the effect that any ambiguity is to be resolved against
the drafting party shall not be applicable in the interpretation of this
Agreement.

<PAGE>

                                   ARTICLE 17

                            INDEPENDENT INVESTIGATION

         RESELLER ACKNOWLEDGES IT HAS READ THIS AGREEMENT AND UNDERSTANDS AND
ACCEPTS THE TERMS, CONDITIONS AND COVENANTS CONTAINED HEREIN AS BEING REASONABLY
NECESSARY TO MAINTAIN ROGERS' HIGH STANDARDS FOR THE ROGERS SERVICES. RESELLER
ACKNOWLEDGES AND UNDERSTANDS THAT ROGERS MAY AT ANY TIME ALSO BE ENGAGED
DIRECTLY OR INDIRECTLY THROUGH OTHER DEALERS, OR OUTLETS OF ANY KIND, IN
SOLICITING POTENTIAL CUSTOMERS FOR THE ROGERS SERVICES. RESELLER ALSO
ACKNOWLEDGES AND UNDERSTANDS THAT ROGERS MAY SELL THE ROGERS SERVICES TO OTHERS
WHO MAY RESELL IT. RESELLER HAS INDEPENDENTLY

         INVESTIGATED THE ROGERS SERVICES OR EQUIPMENT AND THE PROFITABILITY (IF
ANY) AND RISKS THEREOF AND IS NOT RELYING ON ANY REPRESENTATION, GUARANTEE OR
STATEMENT OF ROGERS OTHER THAN AS SET FORTH IN THIS AGREEMENT.

         IN PARTICULAR, RESELLER ACKNOWLEDGES THAT ROGERS HAS NOT REPRESENTED:
(a) RESELLER'S PROSPECTS OR CHANCES FOR SUCCESS SELLING THE ROGERS SERVICES
UNDER THIS AGREEMENT; (b) THE TOTAL INVESTMENT THAT RESELLER MAY NEED TO MAKE TO
OPERATE UNDER THIS AGREEMENT (ROGERS DOES NOT KNOW THE AMOUNT OF THE TOTAL
INVESTMENT THAT MAY BE REQUIRED FOR THIS PURPOSE); OR (c) THAT ROGERS WILL LIMIT
ITS EFFORTS TO SELL THE ROGERS SERVICES OR ESTABLISH OTHER RESELLERS.

         RESELLER ALSO ACKNOWLEDGES THAT ROGERS HAS NOT REPRESENTED TO IT THAT:
(a) ROGERS WILL PROVIDE LOCATIONS OR ASSIST RESELLER TO FIND LOCATIONS TO
PROMOTE THE SALE OF THE ROGERS SERVICE UNDER THIS AGREEMENT; (b) ROGERS WILL
PURCHASE ANY PRODUCTS MADE BY RESELLER THAT ARE IN ANY WAY ASSOCIATED WITH THE
ROGERS SERVICES SOLD BY RESELLER UNDER THIS AGREEMENT; (c) RESELLER WILL DERIVE
INCOME FROM THE SALE OF THE ROGERS SERVICE SUNDER THIS AGREEMENT, OR ROGERS WILL
REFUND ANY PAYMENTS MADE BY RESELLER TO ROGERS UNDER THIS AGREEMENT; OR (d)
ROGERS WILL PROVIDE A SALES OR MARKETING PROGRAM THAT WILL ENABLE RESELLER TO
DERIVE INCOME UNDER THIS AGREEMENT.

         RESELLER FURTHER ACKNOWLEDGES THAT ROGERS HAS NOT MADE ANY
REPRESENTATIONS REGARDING: (a) THE QUANTITY OR QUALITY OF THE ROGERS SERVICES TO
BE SOLD BY RESELLER; (b) THE PROVISION BY ROGERS TO RESELLER OF TRAINING AND
MANAGEMENT ASSISTANCE; (c) THE AMOUNT OF PROFITS, NET OR GROSS, THAT RESELLER
CAN EXPECT FROM ITS OPERATIONS UNDER THIS AGREEMENT; (d) THE SIZE, CHOICE,
POTENTIAL, OR DEMOGRAPHIC NATURE OF THE AREA IN WHICH THE ROGERS SERVICES IS
AVAILABLE OR THE NUMBER OF THE AREAS IN WHICH THE ROGERS SERVICE IS AVAILABLE OR
THE NUMBER OF OTHER DEALERS OR RESELLERS THAT ARE OR MAY IN THE FUTURE OPERATE
IN THAT AREA; OR (e) THE TERMINATION, TRANSFER, OR RENEWAL PROVISIONS OF THIS
AGREEMENT OTHER THAN AS SET FORTH IN THIS AGREEMENT. RESELLER ACKNOWLEDGES THAT
IT UNDERSTANDS THAT IT WILL NOT OBTAIN ANY EXCLUSIVE RIGHTS UNDER THIS
AGREEMENT, EITHER WITH RESPECT TO A TERRITORY OR OTHERWISE, AND UNDERSTANDS THAT
ROGERS MAY APPOINT

<PAGE>

OTHER DEALERS OR RESELLERS IN ANY AREA. RESELLER ALSO ACKNOWLEDGES THAT ROGERS
CANNOT CALCULATE IN ADVANCE THE TOTAL AMOUNT THAT RESELLER MUST PAY TO ROGERS
UNDER THIS AGREEMENT AS THAT AMOUNT DEPENDS ON THE QUANTITY OF THE ROGERS
SERVICES THAT THE END USERS PURCHASE.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.

INNOFONE CANADA INC.                        ROGERS WIRELESS INC.

Per:                                        Per:
    ------------------------------              ------------------------------
By: Larry Hunt                              By:     Daniel J. Fowler
Title: CEO                                  Title:  V.P. National Sales

Per:                                        Per:
    ------------------------------              ------------------------------
By:                                         By:     M. Relano
Title:                                      Title:  SRN V.P. & CFO

<PAGE>

                                  SCHEDULE "A"
                                     PRICING

         The pricing at which Rogers agrees to sell the Rogers Services to
Reseller shall be determined based on the following principles:

         (a)  No less than once during each period of six months during the term
              of the Agreement, Rogers and Reseller shall select a separate rate
              plan from both (i) Rogers' retail pricing rate card and (ii) the
              retail pricing rate cards of no more than three of Rogers'
              competitors that will be applicable for use by VISA Customers. At
              such times, Rogers and Reseller shall also agree on any specific
              rules that would govern the comparison of such selected rate plans
              for purposes of determining the Best Price Amount (as defined
              below). Such rules would address, without limitation, matters
              relating to special promotions with respect to such plans, unusual
              pricing features (for example, Fido's present caller
              identification charge) and the use of analogue services on certain
              rate plans. Rogers will not, at any time, agree to select any rate
              plan that would require Rogers to sell the cellular services to
              Reseller (as described in (c) below) at a rate that is less than
              the rate that Rogers generally makes available to its resellers in
              accordance with its then applicable reseller rate card. If Rogers
              and Reseller are unable to agree on the applicable retail pricing
              rate cards, either party shall be entitled to terminate the
              agreement on 30 days notice.

         (b)  Reseller agrees to charge each of its customers for such
              customer's actual use of the Rogers Services during any monthly
              billing period (i) the applicable airtime and monthly service fees
              for such use based on the lowest rate from such selected rate
              plans having regard to such customer's actual use of the cellular
              services during such billing period and the rules described in (a)
              above (the "Best Price Amount"), plus (ii) an amount determined by
              Reseller with respect to all other charges for call features, long
              distance, roaming, and voicemail and other optional services, less
              (iii) any additional discount offered by Reseller.

         (c)  Reseller agrees to pay to Rogers on a monthly basis with respect
              to each VISA Customer, an amount equal to the product of (i)
              79.09%, and (ii) the Best Price Amount with respect to such
              customer for the previous monthly billing period.

              Reseller shall also pay Rogers for all other charges for call
              features, long distance, roaming, and voicemail and other optional
              services based on Rogers' reseller rate card as it exists from
              time to time. Initially, such rates shall be as set out below.

         (d)  Without limiting section (a) above, it shall be assumed that at
              least 25% of a customers use of the Rogers Services will be
              analogue for purposes of calculating the rate with respect to any
              selected Fido rate plan.

<PAGE>

         (e)  The initial rate (which may be changed by Roger upon notice to
              Reseller) for the optional features referred to in (c) above shall
              be as follows:

<TABLE>
<S>                                                   <C>
-------------------------------------------------------------------------------------------------------------

Optional Services                                     Rate
-------------------------------------------------------------------------------------------------------------
Enhanced Voicemail                                    $3/month
-------------------------------------------------------------------------------------------------------------
Text Messaging                                        $2.50/month
-------------------------------------------------------------------------------------------------------------
E-mail Messaging                                      $2.50/month
-------------------------------------------------------------------------------------------------------------
Combined Enhanced Voicemail, Text Messaging, E-       $5.50/month
mail Messaging
-------------------------------------------------------------------------------------------------------------
Long Distance within Canada and to the U.S.           $0.15/minute
-------------------------------------------------------------------------------------------------------------
Long Distance from within U.S. and to Canada          $0.75/minute airtime + U.S. Telco long distance
                                                      pass through charges
-------------------------------------------------------------------------------------------------------------
Caller ID                                             No charge
-------------------------------------------------------------------------------------------------------------
Per Second Billing                                    No charge (note:  per second billing after 1st minute)
-------------------------------------------------------------------------------------------------------------
Call Transfer & Conference Calling                    No charge
-------------------------------------------------------------------------------------------------------------
Activation Fee                                        No charge
-------------------------------------------------------------------------------------------------------------
Call Forwarding                                       No charge up to 1000 minutes thereafter $0.10 per
                                                                minute
-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------
Service Charges                                       Rate - Per Transaction
-------------------------------------------------------------------------------------------------------------
                                                      $5
Telephone Number Change
-------------------------------------------------------------------------------------------------------------
Adding/Deleting Optional Services After Initial       $5
Activation
-------------------------------------------------------------------------------------------------------------
Deactivating Account                                  No Charge - Subject to Early Cancellation Fee of
                                                      $20 per month remaining in the one-year term to a
                                                      maximum $200
-------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                  SCHEDULE "B"

                               BILLING INFORMATION

1.       (a)    Access, optional feature, monthly service charges and other
                recurring charges are billed in advance based on actuals as of
                the billing date. Some features are billed in arrears. All
                recurring charges are prorated for the portion of the month that
                the phone has been in use.

         (b)    Airtime usage is billed in arrears for the billing period.

2.       The billing date for Reseller may be established by Rogers at its
         discretion.

3.       Rogers shall provide call detail records for each Mobile Identification
         Number (MIN) activated for Reseller within five (5) business days of
         the bill close date. Initially, Rogers shall provide the call detail
         records electronically using FTP protocol. Eventually a system will be
         established to transmit the results from Rogers to Reseller
         electronically by means of a telecommunication data link. At that time,
         magnetic tape records will become the default method of record transfer
         and will continue to be available. A separate charge may be levied for
         the telecommunication data line.

4.       The call detail record for each Number shall include:

         (i)    the number, location, rate period

         (ii)   all optional usage charges;

         (iii)  all toll charges, identifying number called, time and date of
                call and length of call;

         (iv)   international roaming charges; and (v) any miscellaneous
                charges.

5.       Any changes to Rogers' standard billing format or processes required by
         Reseller shall be at Reseller's cost. These changes will be considered
         by Rogers and will be developed at Reseller's costs at Rogers' sole
         discretion.

6.       Timing of Calls

         (a)    Usage rate apply for completed calls originated or received on
                each Mobile Identification Number (MIN):

                (i)    Chargeable time for a completed call originated from a
                       MIN begins when a connection to the Rogers facilities is
                       established, which is when the "SEND" button is pressed,
                       and ends when the Cellular Equipment unit disconnects
                       from the system, which is shortly after the "END" button
                       is pressed or the cellular call is otherwise
                       disconnected.

<PAGE>

                (ii)   Chargeable time for a completed call received by a MIN
                       begins when connection is made with provider's equipment,
                       and ends when the cellular equipment unit disconnects
                       from the Cellular System.

                (iii)  Chargeable time is also incurred for use of enhanced
                       services such as Call Waiting, Conference Call and
                       automatic call delivery for each call which is set up.

                (iv)   There is a flat fee as outlined in Schedule "A" for Call
                       Forwarding, No Answer Transfers and Busy Transfers.

         (b)    The minimum usage charge for each call is one minute and the
                airtime charges are billed in full minute increments. For
                example, a one minute 20 second call will be billed as two
                minutes.

         (c)    When a connection is established in one time period and ends in
                another, the rate in effect for each period applies to that
                portion of the connection occurring within each period.

7.       Timing Periods for Usage Charges

         (a)    Usage rates apply based on the time of day and day of week.

         (b)    Calls made on statutory holidays will be rated at the normal
                rate applicable for that day of the week.

         (c)    Refer to Schedule A for a schedule of Time Periods for Usage
                Rates.

8.       Discounts

         Discounts may be applied to access and/or usage charges as set forth in
         Schedule "A".

9.       Landline Charges

         (a)    Rogers shall charge back to Reseller any third party charges or
                operator assisted calls charged to the cellular number. These
                calls cannot be restricted at this time. Electronic billing for
                these calls cannot be provided, however a paper addendum is
                provided in support of the charges.

         (b)    An additional charge per call shall apply for directory
                assistance and directly assisted call completion. These charges
                are levied separately and provided with the Rogers invoice.

         (c)    Any services provided by information providers (such as 900 NPA
                or 976 NXX

<PAGE>

                services) will be barred as it cannot be charged back to the end
                customer.

         (d)    Usage rates do not apply on calls placed to the 911 emergency
                service operator. Rogers will route these calls in the same
                manner as our retail service.

         (e)    Any future compensation payable to local landline companies
                resulting from regulatory decisions will be passed through to
                Reseller.

10.      Cellular Long Distance Charges

         (a)    Reseller shall be charged cellular long distanc charges as set
                forth in this section. Charges are in addition to usual airtime
                rates set forth in Schedule "A". Cellular long distance rates
                are Rogers' standard retail rates. A discount on domestic long
                distance will be applied as per Schedule "A".

         (b)    Charges apply to cellular long distance calls initiated from
                within and applicable cellular local calling area to points
                outside that area and are in addition to local airtime rate. A
                long distance call is rated at time of originating VH
                co-ordinates to the end VH co-ordinates. A long distance call
                made while being mobile is rated from its point of inception. A
                long distance call crossing over to another rate period will be
                prorated based on the portion of the call in each rate period.

11.      Call Following and Roaming

         (a)    CALL FOLLOWING is the network capability for Reseller's
                customers to automatically make calls, receive calls, or
                activate network features anywhere in Canada. Reseller's
                customers do not have to notify their callers of their location
                or have callers use special access codes. Reseller is charged
                Rogers' long distance rates for incoming calls when travelling
                away from their home area in the network. The roam number for
                that location can be used to avoid the long distance charges on
                the incoming call.

          (b)   Reseller's customers will be able to use their cellular
                telephone in all major markets in the United States where Rogers
                has roaming agreements between carriers. In some U.S. markets
                where CALL FOLLOWING is not available, the roamer will receive
                incoming calls if the caller uses a special roaming access code
                in addition to the roamer's cellular telephone number. Roaming
                charges are the applicable roaming rates of the local cellular
                network operator. Roaming rates vary from carrier to carrier and
                may include a daily set up fee and a per minute airtime rate,
                miscellaneous charges, plus applicable long distance charges.
                Foreign and Canadian taxes may also apply. All roaming charges
                will be billed at retail rates to Reseller.

12.      Rogers will provide an invoice to Reseller consisting of all applicable
         charges as outlined above in points 1 through 11, monthly service
         charges and taxes. The standard invoice

<PAGE>

        format will be an electronic (soft) copy.

                                  SCHEDULE "C"

                           RESELLER OPERATIONS MANUAL

See attached.

<PAGE>

                                  SCHEDULE "D"

                              RESELLER SUPPLY TERMS

                                    ARTICLE 1

2.       PURCHASE AND SALE OF EQUIPMENT

1.1      Equipment Available for Purchase.

         Rogers agrees to make available for sale to Reseller Equipment in
accordance with Section 6.2 of the main body of the Agreement.

1.2      Purchased Equipment.

         Subject to the terms and conditions hereof, Reseller may purchase
Equipment from time to time in accordance with the procedures set out in Article
2 of this Schedule (the "Purchased Equipment"). Reseller acknowledges that
availability of the Purchased Equipment is dependent on the manufacturer thereof
and Rogers is not responsible for ensuring that any Equipment desired to be
purchased by Reseller is available.

1.3      Additional Purchase Terms.

         All Purchased Equipment shall be for the sole purpose of resale by
Reseller to customers for use in connection with the Rogers Services. The
purchase and sale of Equipment hereunder shall also be subject to such other
rules, procedures, policies and guidelines established by Rogers from time to
time and provided to Reseller ("Purchasing Procedures").

1.4.     Non-Exclusivity.

         Reseller hereby acknowledges that the rights granted to it pursuant to
this Agreement are non- exclusive and that Rogers reserves the right to enter
into the same or similar agreements with other dealers and resellers, both third
party and those affiliated with Rogers, in relation to the same or similar
Equipment. Rogers further reserves the right to solicit orders and sell the
Equipment directly to end users pursuant to terms and conditions determined by
Rogers at its sole discretion.

                                    ARTICLE 2

                              ORDERS AND PROCESSING

1.1      Forecasts

         On or before the tenth day of each calendar month during the term of
this Agreement, Reseller shall provide to Rogers a written forecast (a
"Forecast") in a manner acceptable to Rogers, indicating the number of units of
Equipment that Reseller anticipates it will purchase form Rogers during the next
calendar month. Provided that such Forecasts are made by such dates and without
limiting Section 1.2 of this Schedule, Rogers will use commercially reasonable

<PAGE>

efforts to make such Equipment available for purchase by Reseller.

2.2      Placement of Orders.

         Reseller shall submit all orders for Purchased Equipment directly to
Watts, Rogers' fulfilment agent on an authorized purchase order form or other
confirmation of purchase approved by Rogers (each, a "Purchase Order") or in
such other manner that is acceptable to Rogers and Watts. No Purchase Order may
be modified without Rogers' express written approval. The parties hereto agree
that the terms and conditions of this Agreement shall supersede and take
precedence over any inconsistent terms or conditions appearing on a Purchase
Order. All Purchase Orders shall be made by Reseller in accordance with the then
current Purchasing Procedures.

2.3      Acceptance by Rogers.

         A Purchase Order will be considered accepted by Rogers when the
Purchased Equipment is delivered by Rogers in accordance herewith or when
acceptance of the Purchase Order is given to the Reseller by Rogers in writing.
Rogers reserves the right to accept or reject any Purchase Order at its sole
discretion and subject to availability and no Purchase Order will be effective
unless and until so accepted by Rogers.

                                    ARTICLE 3

                                  PAYMENT TERMS

2.1      Purchases Invoiced.

         The Purchased Equipment shall be invoiced to Reseller weekly in arrears
at prices described in Section 6.2 of the main body of the Agreement. In
addition, Reseller agrees to pay to Rogers a stocking fee in respect of each
month in an amount equal to the product of $5.00 multiplied by the greater of
(i) the number of units of Equipment actually purchased by Reseller from Rogers
in such month, and (ii) the number of units of Equipment set out in the Forecast
for such month; provided that if, during any month, Rogers is unable to deliver
any Equipment specified in the Forecast for such month such stocking fee shall
be in an amount equal to the product of $5.00 multiplied by the number of Units
of Equipment actually purchased by Reseller from Rogers in such month.

2.2      Payment Due.

         All payments for Purchased Equipment shall be due within ten (10) days
of the date of the invoice therefor.

2.3      Overdue Accounts.

         All amounts which are not paid when due shall accrue and shall be
subject to the payment of interest at the rate of one and one-half (1.5%)
percent, compounded monthly (19.56% per annum). Rogers reserves the right to
withhold delivery of any Purchased Equipment if Reseller has failed to meet any
of its payment obligations hereunder.

<PAGE>

                                    ARTICLE 4

                                    DELIVERY

3.1      Delivery of Equipment.

         Delivery of the Purchased Equipment shall be F.O.B. manufacturer's
warehouse or Rogers' fulfilment agent, as indicated to Reseller by Rogers. All
freight charges incidental to delivery shall be paid by Rogers.

4.2      Delays in Delivery.

         Rogers shall not be liable for any failure to fill, or delay in
filling, Purchase Orders received from Reseller and accepted by Rogers, for any
reason whatsoever, including but not limited to, force majeure. Rogers will use
reasonable commercial efforts to notify Reseller of any delays or inability to
deliver the Purchased Equipment; however, if any conditions arise which prevent
compliance with delivery schedules, Rogers shall not be liable for failure to
give such notice of delay or to deliver the Purchased Equipment.

4.3      Title to Equipment and Risk of Loss.

         Title to all Purchased Equipment shall pass to Reseller at the moment
it is made available to Reseller by Rogers at manufacturer's warehouse and,
thereafter, Reseller shall be responsible for any loss, theft and/or damage to
the Purchased Equipment, including any loss, theft or damage caused to the
Purchased Equipment as a result of, or during, shipment.

                                    ARTICLE 5

                           RETURNS AND SHORT SHIPMENTS

4.1      Deficiency in a Shipment.

         In the event of a shortage or deficiency in a shipment of Purchased
Equipment, Reseller shall give written notice to Rogers of such claim within two
(2) business days of receipt of the subject delivery, failing which the
applicable invoice shall be considered payable in accordance with the terms
hereof.

4.2      Return Policy.

         Within two (2) business days of receiving the Purchased Equipment,
Reseller will have the right to return directly to Rogers or to the
manufacturer, at Rogers' option, any damaged or defective equipment which is
under manufacturer's warranty as well as any equipment which does not comply

<PAGE>

with the applicable Purchase Order, including overshipments. At its sole
discretion, Rogers may refund, repair or replace equipment which it determines
to be under warranty or which fails to comply with the applicable Purchase
Order. Rogers has the discretion to refuse the return where it determines that
the equipment in question was improperly used or handled.

5.3      Equipment Returned.

         Any return shall be in accordance with this Agreement, whether returned
upon termination of this Agreement or at any other time, and shall be in its
original packaging and in a condition which is saleable pursuant to Rogers'
normal commercial terms and shall be delivered at Reseller's expense, to
manufacturer's warehouse where such equipment was delivered to Reseller.

                                    ARTICLE 6

                                SECURITY GRANTED

5.1      Purchase Money Security Interest.

         Without limiting the foregoing, Rogers reserves, until full payment is
received, a purchase money security interest in all Purchased Equipment and in
all proceeds derived from the resale of same. The Reseller shall provide such
information, execute and deliver such further agreements, documents and
instruments as Rogers may request so that Rogers may perfect and maintain such
security interest. If, in the event of default, such security interest is not
sufficient to satisfy any indebtedness of the Reseller, the Reseller
acknowledges and agrees that the Reseller shall continue to be liable for any
indebtedness remaining outstanding and Rogers shall be entitled to pursue full
payment thereof.

6.2      Moveable Hypothec.

As security for any amounts owing by the Reseller to Rogers and for all other
obligations of the Reseller toward Rogers under this Agreement, or under any
other present or future agreement entered into between Reseller and Rogers, the
Reseller hereby grants to Rogers a moveable hypothec on the universality of all
the undertakings, properties and assets which the Reseller owns or has an
interest in whether such ownership or interest exists at any time thereafter and
said hypothec shall extend to all proceeds arising therefrom. The present
moveable hypothec is granted for a maximum amount of FIVE HUNDRED THOUSAND
DOLLARS ($500,000.00). It is agreed that Rogers shall have the right at its sole
discretion, at any time, to register and publish such moveable hypothec and/or
to renew such registration and/or publication.

6.3      Reseller Default.

         In the event that Reseller is in default of any of its obligations
under this Agreement, Rogers shall have the right to draw on the security
granted hereunder or any letter of credit or security deposit given by Reseller
to Rogers pursuant to this Agreement or any other agreement.

<PAGE>

                                    ARTICLE 7

                                   TERMINATION

6.1     Effect of Termination

         The termination of this Agreement shall not relieve or release either
party from any of its obligations accrued hereunder prior to the effective date
of such termination. Notwithstanding the foregoing, all outstanding orders which
have not yet been delivered will automatically be cancelled and Rogers will have
the option to require Reseller to return, at Reseller's expense, all unsold
Purchased Equipment.

                                    ARTICLE 8

                                    WARRANTY

9.1      No Warranty.

ANY WARRANTY WITH RESPECT TO THE PURCHASED EQUIPMENT SHALL BE LIMITED TO THAT
OFFERED BY THE MANUFACTURER, IF APPLICABLE. OTHER THAN ANY WARRANTY PROVIDED BY
THE MANUFACTURER OF THE PURCHASED EQUIPMENT, ROGERS HEREBY DISCLAIMS ALL EXPRESS
OR IMPLIED WARRANTIES ON ANY PURCHASED EQUIPMENT, INCLUDING, WITHOUT LIMITATION,
ANY WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, WARRANTY OF MERCHANTABILITY OR
NONINFRINGEMENT OF THIRD PARTY RIGHTS. ROGERS' SOLE LIABILITY WILL BE TO ASSIGN
TO THE RESELLER, AT THE RESELLER'S REQUEST AND TO THE EXTENT PERMITTED BY LAW,
THE BENEFIT OF ANY WARRANTY EXTENDED BY THE MANUFACTURER OF THE PURCHASED
EQUIPMENT.<PAGE>

                                                                     Exhibit 4.5

                        Warrant to Purchase up to 87,500
                        Shares of Common Stock

           WARRANT TO PURCHASE UP TO 87,500 SHARES OF THE COMMON STOCK

                                       OF

                        INTERNET FINANCIAL SERVICES, INC.
               and its wholly owned subsidiary, A.B. Watley, Inc.

         This Warrant has not been registered under the Securities Act of 1933,
as amended (the "Securities Act") or any securities laws of the State of New
York. This Warrant has been and any shares of Common Stock issued upon exercise
thereof ("Warrant Shares") will be acquired for investment (and not with a view
toward distribution or resale) directly from Internet Financial Services, Inc.
and its wholly owned subsidiary A.B. Watley, Inc. (the "Company") in a
transaction not involving any public offering, and must be held indefinitely. No
sale, pledge or other transfer or disposition of the Warrant or Warrant Shares,
or of any interest therein, may be made unless in compliance with the terms
herein and unless and until (i) a registration statement under the Securities
Act has been filed with the Securities and Exchange Commission (the
"Commission") and pursuant to any applicable state securities laws and has
become effective with respect to such transfer or (ii) the Company shall have
received an opinion of counsel reasonably satisfactory to it that registration
under the Securities Act and applicable state law is not required with respect
to the intended transfer. Rule 144 will not be available for sales of the
Warrant or Warrant Shares. The above restrictions shall not apply to the
exercise of the right of redemption ("Put") as set forth in Paragraph 4 hereof.

         Any purported sale, pledge or other transfer or disposition of this
Warrant or of the Warrant Shares in violation of any provision of this Warrant
and the above securities laws restrictions shall be null and void.

                                            Dated: October 2, 1998
<PAGE>

         This certifies that in consideration of the sum of $10.00 and other
good and valuable consideration paid by New York Small Business Venture Fund LLC
("Lender") to the Company the receipt of which is hereby acknowledged, Lender or
its registered assigns, is entitled to purchase, subject to the provisions of
this Warrant, for a period of five (5) years from the date hereof being the
closing of the certain loan from Lender to the Company in the amount of
$500,000. (the "Loan") made pursuant to a certain loan agreement (the "Loan
Agreement"), but not thereafter, from the Company, up to 87,500 shares of the
Company's Common Stock $.001 par value per share (the "Stock" or "Common Stock")
on a fully diluted basis (to be adjusted for all convertible securities and
options and warrants issued and which were issued at the time of issuance of
this Warrant), such shares being hereinafter referred to as the "Warrant
Shares". The Company stipulates that, prior to the date hereof, there are
5,137,500 shares of common stock issued and outstanding. The purchase price for
the Warrant Shares issuable hereunder is the lesser of $10. per share or the
price of any future offering by the Company up to the time of the exercise of
the Warrant as from time to time adjusted pursuant to the terms hereof (such
being hereinafter referred to as the "Warrant Price").

         This Warrant is subject to the following terms and conditions:

1.       Exercise of Warrant.

         This Warrant may be exercised in whole or in part by Lender up to five
(5) years from the date hereof. The registered holder hereof must give written
notice at the offices of the Company of their intention to exercise the Warrant
in whole or in part. Upon delivery of this Warrant at the offices of the Company
or at such other address as the Company may designate by notice in writing to
the registered holder hereof with the Subscription Form

                                        2
<PAGE>

annexed hereto duly executed, accompanied by payment of the Warrant Price for
the number of Warrant Shares purchased, the registered holder of this Warrant
shall be entitled to receive a certificate or certificates for the Warrant
Shares so purchased. The Warrant Shares deliverable hereunder shall, upon
payment therefor and issuance in accordance with this Warrant, be fully-paid and
non-assessable and the Company agrees that at all times during the term of this
Warrant it shall cause to be reserved for issuance such number of shares of its
Common Stock as shall be required for issuance and delivery upon exercise of
this Warrant. In the event of a partial exercise and purchase of Warrant Shares,
the Company shall issue an exchange Warrant that can thereafter be utilized to
exercise the purchase of the remaining Warrant Shares not as yet purchased,
which exchange Warrant shall be issued on the same terms and conditions as set
forth herein, but adjusted for the remaining number of shares that is subject to
the Warrant.

2.       Transfer or Assignment of Warrant.

         Any assignment or transfer of this Warrant which is permissible shall
be made by surrender of this Warrant at the offices of the Company or at such
other address as the Company may designate in writing to the registered holder
hereof with the Assignment Form annexed hereto duly executed and accompanied by
payment of any requisite transfer taxes and the Company shall, provided all
conditions with respect thereto as set forth herein have been complied with,
without charge, execute and deliver a new Warrant of like tenor and amount in
the name of the assignee.

3.       Charges, Taxes and Expenses.

         The issuance of certificates for shares of Common Stock upon any
exercise of this Warrant shall be made without charge to the holder hereof for
any stock transfer tax or other expense in respect to the issuance of such
certificates, all of such taxes and

                                        3
<PAGE>

expenses shall be paid by the Company, and such certificates shall be issued
only in the name of the registered holder of this Warrant.

4.       Lender's Right of Redemption of the Warrant or

         Warrant Shares

         Lender will have the right to sell the Warrant or the Warrant Shares to
the Company on the terms and conditions of this Section 4, such right being
hereinafter referred to as Lender's "Put". The Put may be exercised upon the
earlier of either (a) any time after five (5) years from the date hereof, in the
event there has not been a public offering of the Company, or (b) a default by
the Company under any of the terms, covenants and conditions of the Loan
documents beyond any applicable notice and cure provisions; in each case at a
per share price ("Put Price") based upon Lender's proportionate share of the
greater of the following Company valuation formulae:

         a)       cumulative net earnings after taxes ("Net Earnings") from the
                  date hereof to the time of the exercise of the Put; or

         b)       six (6) times the average pre-tax operating earnings
                  (operating earnings being equal to Net Earnings, plus
                  depreciation, taxes, amortization and interest expense) for
                  the two (2) full fiscal years immediately prior to the
                  exercise of the Put; or

         c)       six (6) times pre-tax operating earnings (operating earnings
                  being equal to Net Earnings, plus depreciation, taxes,
                  amortization and interest expense) for the full fiscal year
                  immediately prior to the exercise of the Put); or

         d)       an appraisal conducted by a professional valuation firm
                  appointed by mutual consent of Lender and the Company. In the
                  event mutual consent is not obtained, Lender and the Company
                  shall submit the issue of the selection of

                                        4
<PAGE>

                  an appraiser to the American Arbitration Association and shall
                  abide by its decision. Both parties shall share equally the
                  cost of any such appraisal and arbitration.

         The Put Price will be increased by the amount of the Warrant Price
actually paid if the Warrant or any portion thereof has been exercised into the
underlying common stock. The amount of the Put Price shall be determined as of
the date upon which the Put was exercised. The Put Price will be paid to Lender
in cash thirty (30) days after the Put exercise.

         The Put will terminate upon the completion of an initial public
offering of the Company's securities.

5.       The Make Up Provision

         If the Company within six (6) months of the Put's exercise a) becomes a
party to any merger or consolidation where the Company is not the surviving
entity or where more than fifty percent (50%) of the Company's ownership is
transferred; or b) sells substantially all of its assets, liquidates or disposes
of a material part of its business; or c) files a registration statement for and
consummates a public offering, the Company will then be obligated to recompute
the proceeds which would have been due to Lender and remit the difference
between such recomputation and the Put Price to Lender in cash at the close of
the sale as described in Section 5 subsection (a) and (b) hereof or the close of
the public offering of the Company.

6.       Certain Obligations of the Company.

         The Company will not, by amendment of its Certificate of Incorporation
or through reorganization, consolidation, merger, dissolution or sale of assets,
or by any other voluntary act or deed, avoid or seek to avoid the performance or
observance of any of the

                                        5
<PAGE>

covenants, stipulations or conditions to be performed or observed by the Company
hereunder. The Company represents that the shares issuable under this Warrant
will represent 87,500 shares of the Company as of the date hereof.

7.       Anti Dilution Protection for Stock Threshold Amount

         The Company and Lender agree that for the purposes of this Section 7
the terms "Stock Threshold Amount" as defined herein shall be $10. per share of
Common Stock . The Stock Threshold Amount and, in some cases, the number of
shares purchasable upon the exercise of this Warrant shall be subject to
adjustment from time to time upon the occurrence of certain events described in
this Section 7.

         7.1      Adjustment of Stock Threshold Amount and Number of Shares.

         7.1.1    Subdivision or Combination of Stock and Stock Dividend. In
case the Company shall at any time subdivide its outstanding shares of Stock
into a greater number of shares or declare a dividend upon its Stock payment
solely in shares of Stock, the Stock Threshold Amount in effect immediately
prior to such subdivision or declaration shall be proportionately reduced, and
the number of shares issuable upon exercise of the Warrant shall be
proportionately increased. Conversely, in case the outstanding shares of Stock
of the Company shall be combined into a smaller number of shares, the Stock
Threshold Amount in effect immediately prior to such combination shall be
proportionately increased, and the number of shares issuable upon exercise of
the Warrant shall be proportionately reduced.

         7.1.2    Adjustment Due to Issuance of Shares. (a) If at any time or
from time to time after October 2, 1998 (the "Commencement Date"), the Company
shall issue or sell Additional Shares of Common Stock (as hereinafter defined)
other than as a dividend or other distribution on any class of stock and other
than upon a subdivision or combination of

                                        6
<PAGE>

shares of Common Stock for a consideration per share less than the Stock
Threshold Amount, then forthwith upon such issue or sale, the Company shall
adjust Lender's exercise price to such consideration.

                  (b) For the purpose of this Section 7.1.2, the consideration
received by the Company for any issue or sale of securities shall (i) to the
extent it consists of cash, be computed as the gross offering price provided the
net amount of cash received is at least ninety (90%) percent of the gross
offering price in connection with such issue or sale. For the purposes of this
Section 7.1.2.(b), in determining the cash received pursuant to this sub-
section (i), the Company shall receive a credit in connection with an initial
public offering for expenses up to ten (10%) percent of the gross proceeds of
such offering. For example, if the gross offering price is $8.00 per share and
the Company's proceeds are $6.25 per share, an additional $.80 per share shall
be added such that the amount of cash received by the Company is deemed to be
$7.05 per share; (ii) to the extent it consists of a service or property other
than cash, be computed at the fair value of that service or property as
determined in good faith by the Board; and (iii) if Additional Shares of Common
Stock (as hereinafter defined), Convertible Securities (as hereinafter defined),
or rights or options to purchase either Additional Shares of Common Stock or
Convertible Securities are issued or sold together with other stock or
securities or other assets of the Company for a consideration that covers both,
be computed as the portion of the consideration so received that may be
reasonably determined in good faith by the Board to be allocable to such
Additional Shares of Common Stock, Convertible Securities or rights or options.

                  (c) For the purpose of the calculations provided in this
Section 7.1.2, if at any time or from time to time after the Commencement Date
the Company shall issue any rights or options for the purchase of, or stock or
other securities convertible into, Additional

                                        7
<PAGE>

Shares of Common Stock (such convertible stock or securities being hereinafter
referred to as "Convertible Securities"), then, and in each case, if the
Effective Price (as hereinafter defined) of such rights, options or Convertible
Securities shall be less than the Stock Threshold Amount, the Company shall be
deemed to have issued at the time of the issuance of such rights or options or
Convertible Securities the maximum number of Additional Shares of Common Stock
issuable upon exercise thereof and to have received as consideration for the
issuance of such shares an amount equal to the total amount of the
consideration, if any, payable to the Company upon exercise or conversion of
such options or rights. "Effective Price" shall mean the quotient determined by
dividing the total of all of such consideration by such maximum number of
Additional Shares of Common Stock. No further adjustment shall be made as a
result of the actual issuance of Additional Shares of Common Stock on the
exercise of any such rights or options or the conversion of any such Convertible
Securities. If any such rights or options or the conversion privilege
represented by any such Convertible Securities shall expire without having been
exercised, the adjustment to the number of shares available hereunder upon the
issuance of such rights, options or Convertible Securities shall be readjusted
to the number of shares that would have been in effect had an adjustment been
made on the basis that the only Additional Shares of Common Stock so issued were
the Additional Shares of Common Stock, if any, actually issued or sold on the
exercise of such rights or options or rights of conversion of such Convertible
Securities, and such Additional Shares of Common Stock, if any, were issued or
sold for the consideration actually received by the Company for the granting of
all such rights or options, whether or not exercised, plus the consideration
received by issuing or selling the Convertible Securities actually converted
plus the consideration, if any, actually received by the Company on the
conversion of such Convertible Securities.

                                        8
<PAGE>

                  (d) For the purpose of the calculations provided for in this
Section 7.1.2, if at any time or from time to time after the Commencement Date
the Company shall issue any rights or options for the purchase of Convertible
Securities, then, in each such case, if the Effective Price thereof is less than
the then Stock Threshold Amount, the Company shall be deemed to have issued at
the time of the issuance of such rights or options the maximum number of
Additional Shares of Common Stock issuable upon conversion of the total amount
of Convertible Securities covered by such rights or options and to have received
as consideration for the issuance of such Additional Shares of Common Stock an
amount equal to the amount of consideration, if any, received by the Company for
the issuance of such rights or options; plus the minimum amounts of
consideration, if any, payable to the Company upon the conversion of such
Convertible Securities. "Effective Price" shall mean the quotient determined by
dividing the total amount of such consideration by such maximum number of
Additional Shares of Common Stock. No further adjustment of such Stock Purchase
Price adjusted upon the issuance of such rights or options shall be made as a
result of the actual issuance of the Convertible Securities upon the exercise of
such rights or options or upon the actual issuance of Additional Shares of
Common Stock upon the conversion of such Convertible Securities.

         The provisions of subsection (c) above for readjustment upon the
expiration of rights or options or the rights of conversion of Convertible
Securities, shall apply mutatis mutandis to the rights, options and Convertible
Securities referred to in this subsection (d).

                  (e) The term "Additional Shares of Common Stock" as used
herein shall mean all shares of Common Stock issued or deemed issued by the
Company after the Commencement Date whether or not subsequently reacquired or
retired by the Company, other than (i) shares of Common Stock issued upon
conversion of convertible securities or

                                        9
<PAGE>

the exercise of warrants outstanding as of the Commencement Date; and (ii)
shares of Common Stock issued to employees, officers or directors pursuant to
any stock offering, plan or arrangement approved by the Board of Directors of
the Company.

         7.2      Notice of Adjustment. Promptly after adjustment to provide for
the maintenance of the Stock Threshold for Lender's Warrant Shares or any
increase or decrease in the number of shares purchasable upon the exercise of
this Warrant, the Company shall give written notice thereof, by recognized
overnight mail, e.g. Federal Express, addressed to the registered holder of this
Warrant at the address of such holder as shown on the books of the Company. The
notice shall be signed by the Company's chief financial officer and shall state
the effective date of the adjustment and the increase or decrease, if any, in
the number of shares purchasable at such price upon the exercise of this
Warrant, setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based.

         7.3      Other Notices.  If at any time:

                  (a) the Company shall declare any cash dividend upon its
Stock;

                  (b) the Company shall declare any dividend upon its Stock
payable in stock (other than a dividend payable solely in shares of Stock) or
make any special dividend or other distribution to the holders of its Stock;

                  (c) there shall be any consolidation or merger of the Company
with another corporation, or a sale of all or substantially all of the Company's
assets to another corporation; or

                  (d) there shall be a voluntary or involuntary dissolution,
liquidation or winding-up of the Company; then, in any one or more of said
cases, the Company shall give, by recognized overnight mail, e.g. Federal
Express, addressed to the registered holder

                                       10
<PAGE>

of this Warrant at the address of such holder as shown on the books of the
Company, (i) at least 10 days' prior written notice of the date on which the
books of the Company shall close or a record shall be taken for such dividend,
distribution or subscription rights or for determining rights to vote in respect
of any such dissolution, liquidation or winding-up; (ii) at least 10 days' prior
written notice of the date on which the books of the Company shall close or a
record shall be taken for determining rights to vote in respect of any such
reorganization, reclassification, consolidation, merger or sale, and (iii) in
the case of any such reorganization, reclassification, consolidation, merger,
sale, dissolution, liquidation or winding-up, at least 10 days' written notice
of the date when the same shall take place. Any notice given in accordance with
clause (i) above shall also specify, in the case of any such dividend,
distribution or option rights, the date on which the holders of Stock shall be
entitled thereto. Any notice given in accordance with clause (iii) above shall
also specify the date on which the holders of Stock shall be entitled to
exchange their Stock for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding-up, as the case may be. If the Holder of the Warrant does
not exercise this Warrant prior to the occurrence of an event described above,
except as provided in Sections 7.1 and 7.4, the Holder shall not be entitled to
receive the benefits accruing to existing holders of the Stock in such event.

         7.4      Changes in Stock. In case at any time following the
Commencement Date, the Company shall be a party to any transaction (including,
without limitation, a merger, consolidation, sale of all or substantially all of
the Company's assets or recapitalization of the Stock) in which the previously
outstanding Stock shall be changed into or exchanged for different securities of
the Company or common stock or other securities of another corporation or
interests in a noncorporate entity or other property (including cash) or any

                                       11
<PAGE>

combination of any of the foregoing (each such transaction being herein called
the "Transaction" and the date of consummation of the Transaction being herein
called the "Consummation Date"), then, as a condition of the consummation of the
Transaction, lawful and adequate provisions shall be made so that each Holder,
upon the exercise hereof at any time on or after the Consummation Date, shall be
entitled to receive; and this Warrant shall thereafter represent the right to
receive, in lieu of the Stock issuable upon such exercise prior to the
Consummation Date, the highest amount of securities or other property to which
such Holder would actually have been entitled as a stockholder upon the
consummation of the Transaction if such Holder had exercised such Warrant
immediately prior thereto. The provisions of this Section 7.4 shall similarly
apply to successive Transactions.

         7.5      General

         (a) Notwithstanding anything contained herein to the contrary, the
provisions of Section 7 shall only apply if more than 5% of the Company's Common
Stock in the aggregate is sold in a single or multiple transaction(s) for a
consideration at least 30% less than the Stock Threshold Amount .

         (b) Notwithstanding anything herein to the contrary in this Warrant the
Company's obligation to issue shares due to any dilution of the Stock Threshold
Amount set forth above shall not alter or effect the right of Lender, its
successors and assigns to exercise this Warrant at the Warrant Price.

8.       Come Along Rights and Tag Along Rights

         A. In the event any shareholder(s) of the Company (the "Owner") offer
to sell all of their interests in the Company to a third party in an arms length
transaction, then Lender shall, at the written request of the Company's Board of
Directors, be required to sell to such

                                       12
<PAGE>

third party the same portion of Lender's ownership interest, as the interests
being transferred bears to Lender's entire interest for the same purchase price
(on a pro rata basis) that is paid by such third party in such transaction (the
"Come Along Rights") in accordance with this Paragraph 8. Any offer by the Owner
to sell their interests in the Company shall be valid for a period of sixty (60)
days (the "Transfer Period"). The Come Along Rights shall operate as follows:
(a) if the purchase price is in excess of the formula employed in the Put and
all ownership interests are included in the sale, then Lender shall participate
pro rata as a seller in such transaction on the same terms and conditions; or
(b) if the purchase price is less than the Put Price, then Lender shall be
deemed to exercise its Put at the Put Price. The Come Along Rights shall
terminate in the event the Company consummates an initial public offering which
provides the Company with gross proceeds of $10. million or more.

         B. Lender shall be entitled to participate pro rata on the same terms
and conditions in the event any shareholder of the Company owning a ten (10%)
percent or greater ownership interest (the "Principal Owner") of the Company
sells twenty (20%) percent or more of its ownership interest in the Company (the
"Tag Along Rights"), except for transfers among existing shareholders or their
direct family, viz. mother, father, sister, brother and children, and open
market sales provided insiders notify Lender of their intent to sell, which
shall be exempt. Any offer by a Principal Owner to sell its interests in the
Company shall be valid for the Transfer Period. The selling shareholder(s) shall
notify Lender in writing of the terms of any offer within three (3) business
days of such offer having been agreed to by the selling shareholder(s) and a
third party in writing. Lender may exercise its Tag Along Rights by delivering
written notice of such exercise to the selling shareholder(s) at any time within
fifteen (15) days after commencement of the Transfer

                                       13
<PAGE>

Period. The selling shareholder(s) shall delay the consummation of the proposed
sale for the lesser of such fifteen (15) day period or until all of the
shareholders entitled to Tag Along Rights otherwise consent in writing. The
Transfer Period shall begin upon the receipt by Lender of such written notice
from the selling shareholder(s). The Tag Along Rights shall terminate in the
event the Company consummates an initial public offering which provides the
Company with gross proceeds of $10 million or more.

9.       Registration Rights

         In the event the Company proposes to sell any security from and after
the date hereof that will be registered with the Commission under the Securities
Act in a public offering except on Form S-8 or just for the purpose of employee
benefits, then in such event, the Company agrees to use best efforts to "piggy
back" a registration of the Warrant Shares, as the case may be, so that the
Warrant Shares become publicly registered securities in such registration. The
aforesaid registration shall be at the sole cost and expense of the Company.
Upon registration of the Warrant Shares, the holder shall be entitled to
dispose, sell, or transfer the Warrant Shares as a publicly registered security,
but not earlier than thirty (30) days subsequent to the effectiveness of such
Registration Statement. Notwithstanding the foregoing, if an underwriter of such
registered offering determines that the inclusion of the Warrant Shares in such
offering would be detrimental to the Company, or the underwriter requests a one
(1) year holdback in an initial public offering, then Lender hereby consents to
such one (1) year holdback and the underwriter and the Company shall have the
right to exclude some or all of such securities from the offering, provided that
such exclusion is applied pro rata to all of the holders of securities wishing
to participate in the offering. Lender shall be further entitled to all "piggy
back" and demand registration rights afforded any other shareholder.

                                       14
<PAGE>

10.      Registration Procedures

         Company Undertakings. In order to fulfill its agreement to use its best
efforts to effect the registration of the Warrant Shares under the Securities
Act, the Company shall (except as otherwise provided in this Agreement), as
expeditiously as possible:

         10.1.1 with respect to the obligations of the Company under Section 9
above, prepare and file with the Commission a Registration Statement or any
amendment thereto with respect to such securities on or before the expiration of
thirty (30) days from receipt of notice, and thereafter to use its best efforts
to cause such Registration Statement to become effective and remain effective
until all the Warrant Shares are sold or become capable of being publicly sold
without registration under the Securities Act;

         10.1.2 prepare and file with the Commission such amendments and
supplements to the Registration Statement and the prospectus used in connection
therewith as may be necessary to comply with the provisions of the Securities
Act with respect to the sale or other disposition of all the Warrant Shares.

         10.1.3 furnish to Lender such numbers of copies of a summary prospectus
or other prospectus, including a preliminary prospectus or any amendment or
supplement to any prospectus, in conformity with the requirements of the
Securities Act, and such other documents as Lender may reasonably request in
order to facilitate the public sale of the Warrant Shares owned by Lender;

         10.1.4 use its best efforts to register and qualify the Warrant Shares
covered by the Registration Statement under such other securities or blue sky
laws of such jurisdictions as Lender shall reasonably request, and do any and
all other acts and things which may be necessary or advisable to enable Lender
to consummate the public sale or other disposition in such jurisdictions, except
that the Company shall not for any such purpose be required to

                                       15
<PAGE>

qualify to do business as a foreign corporation in any jurisdiction wherein it
is not so qualified or to file therein any general consent to service of
process;

         10.1.5 otherwise use its best efforts to comply with all applicable
rules and regulations of the Commission, and make available to its security
holders, as soon as reasonably practicable, an earnings statement covering the
period of at least twelve months, beginning with the first fiscal quarter
beginning after the effective date of the registration statement, which earnings
statement shall satisfy the provisions of Section 11(a) of the Securities Act;

         10.1.6 notify Lender at any time when a prospectus relating thereto
covered by such Registration Statement is required to be delivered under the
Securities Act, of the happening of any event of which it has knowledge as a
result of which the prospectus included in such registration statement, as then
in effect, includes an untrue statement of a material fact or omits to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing.

         10.2     Expenses. All expenses incurred in any registration of the
Warrant Shares under this Warrant shall be paid by the Company, including,
without limitation, (i) printing expenses, fees and disbursements of counsel for
the Company, (ii) expenses of any special audits to which the Company shall
agree or which shall be necessary to comply with governmental requirements in
connection with any such registration, (iii) all registration and filing fees
for the Warrant Shares under federal and state securities laws, and (iv)
expenses of complying with the securities or blue sky laws of any jurisdictions;
provided, however, the Company shall not be liable for (a) any discounts or
commissions due to any underwriter on account of the sale of the Warrant Shares;
(b) any stock transfer taxes incurred with respect to Warrant Shares sold in the
offering or (c) the fees and expenses of counsel for any

                                       16
<PAGE>

holder of the Warrant or Warrant Shares, provided that the Company will pay the
costs and expenses of Company counsel when the Company's counsel is representing
any or all owners of Warrant Shares or Lender.

         10.3     Indemnification.

         10.3.1   The Company's Indemnity. Without limitation of any other
indemnity provided to Lender or other owner of Warrant Shares, in connection
with an Offering referred to in Section 10, to the extent permitted by law, the
Company shall indemnify and hold harmless such Person, the affiliates, officers,
directors and partners of such Person, any underwriter (as defined in the
Securities Act) for such Person, and each person, if any, who controls such
Person or underwriter (within the meaning of the Securities Act or the
Securities Exchange Act of 1934, as amended), against any losses, claims,
damages or liabilities (joint or several) to which they may become subject under
the Securities Act or other federal or state law, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any of the following statements, omissions or violations
(collectively a "Violation"):

         (i) any untrue statement or alleged untrue statement of a material fact
contained in a registration statement filed pursuant to Section 10, including
any preliminary prospectus or final prospectus contained therein or any
amendments or supplements thereto,

         (ii) the omission or alleged omission to state therein a material fact
required to be stated therein, or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, or

         (iii) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any state securities law or any rule or
regulation promulgated under the Securities Act, the Exchange Act or any state
securities law, in connection with a

                                       17
<PAGE>

registration of Warrant Shares required under Section 9.

The Company shall reimburse Lender, its affiliates, officers or directors or
partners, underwriters or controlling persons for any legal or other expenses
reasonably incurred by them in connection with investigating or defending any
such loss, claim, damage, liability or action; provided, however, that the
Company shall not be liable to any of the foregoing in any such case for any
such loss, claim, damage, liability or action to the extent that it arises out
of or is based upon a violation which occurs in reliance upon and in conformity
with written information furnished expressly for use in connection with such
registration by any such holder, owner, or any other affiliate, officer,
director, partner, underwriter, or controlling person thereof.

         10.3.2   Lender's Indemnity. Lender shall indemnify and hold harmless
the Company, its affiliates, officers, directors, shareholders and
representatives, any underwriter (as defined in the Securities Act) and each
person, if any, who controls the Company or the underwriter (within the meaning
of the Securities Act or the Exchange Act), against any losses, claims, damages,
or liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state laws, insofar as such
losses, claims, damages or liabilities (or actions and respect thereof)
including, without limitation, reasonable attorneys fees or expenses, arise out
of or are based upon any statements or information provided by Lender to the
Company in connection with the offer or sale of the Warrant Shares.

         10.4     Notice; Right to Defend.  Promptly after receipt by an
indemnified party under this Section 10 of a notice of the commencement of any
action (including any governmental action), such indemnified party shall, if a
claim in respect thereof is to be made against any

                                       18
<PAGE>

indemnifying party under this Section 10, deliver to the indemnifying party a
written notice of the commencement thereof and the indemnifying party shall have
the right to participate in the defense of such action. If the indemnifying
party agrees in writing that it will be responsible for any costs, expenses,
judgments, damages and losses incurred by the indemnified party with respect to
such claim, then the indemnifying party, jointly with any other indemnifying
party similarly noticed, shall have the right to assume the defense of such
action with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party shall have the right to retain its own counsel, with
the fees and expenses to be paid by the indemnifying party, if the indemnified
party reasonably believes that representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual
or potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall relieve such indemnifying party of any
liability to the indemnified party under this Section 10 only if and to the
extent that such failure is prejudicial to its ability to defend such action,
and the omission so to deliver written notice to the indemnifying party will not
relieve it of any liability that it may have to any indemnified party otherwise
than under this Section 10.

         10.5     Contribution. If the indemnification rights provided for in
this Section 10 are held by a court of competent jurisdiction to be unavailable
to an indemnified party with respect to any loss, liability, claim, damage or
expense referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party thereunder, shall contribute to the amount
paid or payable by such indemnified party as a result of such loss, liability,
claim, damage or expense in such proportion as is appropriate to reflect the
relative

                                       19
<PAGE>

fault of the indemnifying party on the one hand and of the indemnified party on
the other hand in connection with the statements or omissions which resulted in
such loss, liability, claim, damage or expense as well as any other relevant
equitable considerations. The relative fault of the indemnifying party and the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. Notwithstanding the foregoing, the amount Lender shall be
obligated to contribute pursuant to this Section 10.5 shall be limited to an
amount equal to the proceeds to Lender of the Warrant Shares sold pursuant to
the registration statement which gives rise to such obligation to contribute
(less the aggregate amount of any damages which Lender has otherwise been
required to pay in respect of such loss, claim, damage, liability or action or
any substantially similar loss, claim, damage, liability or action arising from
the sale of such Warrant Shares).

         The indemnification and contribution rights provided by this Section 10
shall be continuing rights and shall survive the registration and sale of any
securities by any person entitled to indemnification or contribution hereunder
and shall survive the expiration or termination of this Agreement.

11.      Warrant for Additional Common Stock

         In the event the Company fails to achieve ninety percent (90%) of the
threshold points of revenue or pre-tax income in accordance with Exhibit A
attached hereto and made a part hereof for calendar years ending 1998, 1999 and
2000, Lender shall receive an additional warrant for 37,500 shares (the
"Additional Shares") of the Company on the same

                                       20
<PAGE>

terms and conditions contained herein, provided, however, that if within three
(3) years from the date hereof there is an initial public offering of the
Company's stock which provides the Company with proceeds being the gross
offering price provided the net amount of cash received is at least ninety (90%)
percent of the gross offering price, paid to the Company in connection with such
issue or sale of $10. million or more, the Additional Shares shall be 18,750.
For the purposes of this Section 11, in determining the cash received pursuant
to this section, the Company shall receive a credit in connection with an
initial public offering for expenses up to ten (10%) percent of the gross
proceeds of such offering. For example, if the gross offering price is $8.00 per
share and the Company's proceeds are $6.25 per share, an additional $.80 per
share shall be added such that the amount of cash received by the Company is
deemed to be $7.05 per share.

12.      Miscellaneous.

(A) The terms of this Warrant shall be binding upon and shall inure to the
benefit of any successors or permitted assigns of the Company and of the holder
or holders hereof and of the Warrant Shares.

(B) No holder of this Warrant, as such, shall be entitled to vote or receive
dividends or be deemed to be a stockholder of the Company for any purpose, nor
shall anything contained in this Warrant be construed to confer upon the holder
of this Warrant, as such, any rights of a stockholder of the Company or any
right to vote, give or withhold consent to any corporate action, receive
dividends or subscription rights, or otherwise.

(C) Receipt of this Warrant or the Warrant Shares shall constitute agreement to
all the terms and conditions contained herein including, but not limited to, the
securities laws restrictions, and shall be deemed a representation of investment
intent without a view toward distribution or resale.

                                       21
<PAGE>

(D) This Warrant and the performance of the parties hereunder shall be construed
and interpreted in accordance with the laws of the State of New York and New
York County shall have exclusive jurisdiction with respect to all controversies
and disputes arising hereunder.

(E) All notices permitted or required herein shall be given as provided in the
Loan Agreement.

13.      Disposition of this Warrant and the Warrant Shares
         and Registration Under Securities Laws

(A) The holder of this Warrant or the Warrant Shares, by acceptance hereof
agrees, prior to the disposition of any such Warrant or Warrant Shares, to give
written notice to the Company expressing such holder's intention to effect such
disposition and describing the manner thereof.

(B) The holder also understands (i) that the Warrant and the Warrant Shares have
not been and will not be registered under the Securities Act or any applicable
state securities law and that the Company is and will be relying upon an
exemption from the registration requirements providing for issuance of
securities not involving any public offering, and (ii) that the Company has
relied upon the fact that the Warrant and Warrant Shares will be held for
investment and without a view to distribution. The holder confirms to the
Company that it is acquiring the Warrant and the Warrant Shares for its own
account for investment and not with a view to the resale or distribution
thereof, however that Lender shall be entitled to assign any portion of the
Warrant or Warrant Shares to any party who participates with Lender
("Participant") in this transaction or any member of Lender without any such
transfer being deemed a prohibited distribution of the Warrant or Warrant
Shares, provided that nothing herein shall be interpreted as an opinion that
such transfer complies with applicable federal or state securities laws. The
Company acknowledges that each Participant shares

                                       22
<PAGE>

in the same rights or obligations that Lender has obtained hereunder to the
extent of their respective participation interests in the event they were to
become a registered holder of their respective participation interest.

(C) Any substitute Warrant and each certificate for the Warrant Shares shall
contain a legend on the face thereof, in form and substance satisfactory to
counsel for the Company, setting forth the restrictions on transfer thereof
contained in this Warrant (including, but not limited to, the Put, and the above
securities law restrictions).

(D) Prior to the date hereof, Lender has made an investigation of the Company
and its business and has had available to it all information with respect
thereto which it needed to make an informed investment decision.

14.      Amendment to Warrant.

         Notwithstanding any of the provisions of this Warrant to the contrary,
any of the provisions of this Warrant may be changed by a writing executed by
the Company and by the holder hereof.

15.      Board Visitation

         Lender shall be given notice of all meetings of the Board of Directors,
receive copies of minutes of all meetings of the Board of Directors and Lender
shall be entitled to send an observer to all meetings of the Board of Directors
of the Company from closing of the Loan until one (1) year following the
exercise of the Warrant hereunder.

                                       23
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by
its duly authorized officers and its corporate seal to be affixed hereto.

                                            INTERNET FINANCIAL SERVICES, INC.

                                            By: /s/ Steven Malin
                                                --------------------------------
                                                Steven Malin,
                                                Chief Executive Officer

Attest:

---------------------------------

Agreed to and Accepted:

NEW YORK SMALL BUSINESS
VENTURE FUND LLC

By: /s/ Howard Sommer
    -----------------------------
    Howard Sommer, Vice President

                                       24
<PAGE>

                                SUBSCRIPTION FORM

                   (To be executed by New York Small Business
                       Venture Fund LLC if they desire to
                              exercise the Warrant)

TO:      INTERNET FINANCIAL SERVICES, INC.

         The undersigned hereby exercises the right to purchase _____ shares of
the Common Stock of Internet Financial Services, Inc. evidenced by the attached
Warrant and herewith makes payment of the purchase price of such shares in full,
all in accordance with the conditions and provisions thereof.

         The undersigned requests that certificates for such shares be issued
pursuant to the Warrant in the name of:

         -----------------------------------------------------------------------
                                      Name

         -----------------------------------------------------------------------
                                     Address

         -----------------------------------------------------------------------

Dated:

         -----------------------------------------------------------------------
                                    Signature

         -----------------------------------------------------------------------
                            Name of Registered Holder
                                 (Please Print)

         -----------------------------------------------------------------------
<PAGE>

           EXERCISE OF WARRANTS EVIDENCED BY THIS WARRANT CERTIFICATE

Number of Shares
of Stock for                     Date of
which exercised                  Exercise           Notation Made by
---------------                  --------           ----------------

<PAGE>

                                 ASSIGNMENT FORM
             (To be executed by Lender in the event of an Assignment
                           or Transfer of the Warrant)

TO:      INTERNET FINANCIAL SERVICES, INC.

         The undersigned hereby assigns/transfers the Warrant to:

         -----------------------------------------------------------------------
                                      Name

         -----------------------------------------------------------------------
                                    Address

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------
                                    Signature

         -----------------------------------------------------------------------
                            Name of Registered Holder
                                 (Please Print)

Dated:

<PAGE>

                              AMENDMENT TO WARRANT

                  Amendment dated as of October 2, 1998 to a certain Warrant
issued by Internet Financial Services, Inc. (the "Company") to New York Small
Business Venture Fund LLC ("Lender") dated as of October 2, 1998 (the "Original
Warrant").

                              W I T N E S S E T H :

                  1. The provisions of the Original Warrant are hereby
incorporated by reference and made a part hereof. Except as otherwise provided,
all definitions in the Original Warrant shall have the same meanings when used
herein.

                  2. This Amendment is being entered into in contemplation of
the Company's initial public offering ("IPO") of its shares of common stock
("Stock") proposed to be underwritten by Whale Securities Co., L.P. ("Whale"),
as underwriter, as substantially outlined in the letter of intent between the
Company and Whale dated July 31, 1998. If such underwriting is not consummated
on or before March 31, 1999, this Amendment shall be void and of no effect.

                  3. Based on the assumption that the Company's Stock will
undergo a reverse split of approximately .675841:1, the number of shares of
Stock covered by the Warrant on the date of the IPO shall be 127,500 shares and
the Warrant Price shall be the IPO price, presently contemplated to be $8.00 per
share of Stock, notwithstanding the terms of the Original Warrant.

                  4. Section 7.1.2 of the Original Warrant is eliminated in its
entirety.

                  5. Section 11 of the Original Warrant, and Exhibit A thereto,
is eliminated in its entirety.

                  6. Except as hereby modified, the terms of the Original
Warrant remain in effect. In the event of any conflict between the terms of the
Original Warrant and this Amendment, the terms of the Original Warrant shall
prevail.

<PAGE>

                  7. Lender agrees to sign the attached letter providing for the
lock-up of Stock provided that the Company insiders, the underwriter and similar
parties receiving stock or options in connection with a financing agree to a
similar lockup, and any amendments thereto required by the NASD or other
regulatory authority.

                  IN WITNESS WHEREOF, this Amendment has been entered into on
the __ day of October, 1998, effective as October 2, 1998.

                                            INTERNET FINANCIAL SERVICES, INC.

                                            By:      /s/ Steven Malin
                                                     -----------------------
                                                     Steven Malin, Chairman and
                                                     Chief Executive Officer

Agreed to and Accepted by:

NEW YORK SMALL BUSINESS VENTURE LLC

By:      /s/ Howard Sommer
         ------------------------------
         Howard Sommer, Vice President

<PAGE>

                           SECOND AMENDMENT TO WARRANT

                  Second Amendment ("Second Amendment") dated as of January 18,
1999 to a certain Warrant issued by Internet Financial Services, Inc. (the
"Company") to New York Small Business Venture Fund LLC ("Lender") dated as of
October 2, 1998 as amended by an Amendment dated as of October 2, 1998 (the
Warrant as heretofore amended being called the "Current Warrant").

                              W I T N E S S E T H :

                  1. The provisions of the Current Warrant are hereby
incorporated by reference and made a part hereof. Except as otherwise provided,
all definitions in the Current Warrant shall have the same meanings when used
herein.

                  2. This Second Amendment being entered into is in
contemplation of the Company's initial public offering ("IPO") of its shares of
common stock ("Stock") proposed to be underwritten by Whale Securities Co., L.P.
("Whale"), as underwriter, as substantially outlined in the letter of intent
between the Company and Whale dated July 31, 1998. If such underwriting is not
consummated on or before May 19, 1999, this Second Amendment shall be void and
of no effect.

                  3. Based on the assumption that the Company's Stock will not
undergo a reverse split incident to, or in preparation for, the IPO, the number
of shares of Stock covered by the Warrant on the date of the IPO shall be
191,250 shares and the Warrant Price shall be the IPO price, presently
contemplated to be $6.00 per share of Stock, notwithstanding the terms of the
Current Warrant.

                  4. Except as hereby modified, the terms of the Current Warrant
remain in effect. In the event of any conflict between the terms of the Current
Warrant and this Amendment, the terms of this Amendment shall prevail.

                  5. Lender agrees to sign the attached letter providing for the
lock-up of Stock provided that the Company insiders, the underwriter and similar
parties receiving stock or options in connection with a financing agree to a
similar lockup, and any amendments thereto

<PAGE>

required by the NASD or other regulatory authority.

                  IN WITNESS WHEREOF, this Amendment has been entered into on
and as of the 18th day of January, 1999.

                                            INTERNET FINANCIAL SERVICES, INC.

                                            By: /s/ Steven Malin
                                                --------------------------------
                                                Steven Malin, Chairman and
                                                Chief Executive Officer

Agreed to and Accepted by:

NEW YORK SMALL BUSINESS VENTURE LLC

By: /s/ Howard Sommer
    -------------------------------
    Howard Sommer, Vice President

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